Agenda packet — Lawndale City Council, February 2, 2026

CITY OF LAWNDALE

AGENDA OF THE LAWNDALE

CITY COUNCIL REGULAR MEETING
Monday, February 2, 2026, 6:30 PM
Council Chambers
14717 Burin Ave
Lawndale, CA 90260
** Revised **
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.

How to observe the Meeting:

To maximize public safety while maintaining transparency and public access, members of the public may now attend the meeting in person. The meeting will also continue to be available for viewing on YouTube “Lawndale CityTV”, the City TV Website, and Lawndale Community Cable Television on Spectrum and Frontier Channel 3.

Copies of this agenda are available prior to the meeting in the Lawndale City Hall foyer or on the City website. Interested parties may contact the City Clerk’s Department at (310) 973-3213 for clarification regarding any individual agenda item.”
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

1. Los Angeles County Sheriff’s Department Update

2. Los Angeles County Fire Department Update
D. ORAL COMMUNICATIONS - ITEMS NOT ON THE AGENDA (Public Comments) E. COMMENTS FROM COUNCIL
F. CONSENT CALENDAR
Items 3 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.

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

4. Accounts Payable Register
— Recommendation: Staff recommends that City Council adopts Resolution No. CC-2602-002 authorizing the payment of certain claims and demands in the amount of $3,019,416.56

5. Minutes of the Lawndale City Council Regular Meeting - January 5, 2026 — Recommendation: that the City Council approve the minutes.

6. Approve Second Amendment for On-Call Civil Engineering Services — Recommendation: that the City Council approve the Second Amendment to the Contract Services Agreement with LAE Associates, Inc., Onward Engineering, SA Associates, Transtech Engineers, Inc., and Willdan Engineering, extending the term of the agreement for one (1) year, through March 4, 2027.

7. Consideration of Claims for Damage Against the City
— Recommendation: that the City Council reject the claim filed by LA Century Law on behalf of Dean Neblett and Louise K. Gomes and instruct staff to process the appropriate correspondence to the claimant.

G. PUBLIC HEARING

8. Case 26-01: An Ordinance to Adopt by Reference the 2025 Los Angeles County Building, Electrical, Mechanical, Plumbing, Residential, and Existing Building Codes and the CA Green Building Code — Recommendation: that the City Council read Ordinance No. 1212-26 by title only and direct staff to publish a public hearing notice for consideration of the ordinance at the next Regular City Council Meeting on March 2, 2026.

H. ADMINISTRATION

9. Consideration and Selection of an Executive Recruitment Firm for the City Manager Position — Recommendation: that the City Council 1.) Review and discuss this report regarding professional executive recruitment services; 2.) Provide direction to staff regarding City Council’s selection of a firm to conduct executive recruitment services for the City Manager position; and 3.) Authorize staff to execute a professional contract services agreement with the selected firm, in a form approved by the City Attorney’s Office; or 3.) Provide other direction as appropriate.

10. Report on Investigation into Allegations Against Councilmember — Recommendation: that the City Council receive and file this report and the City Attorney’s verbal report.

11. Quarterly Investment Report for the Quarter Ended December 31, 2025 — Recommendation: that the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2025.

12. Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2025 — Recommendation: that the City Council receive and file the Annual Comprehensive Financial Report for the Year Ended June 30, 2025.

13. Mid-Year Budget Update for Fiscal Year 2025-2026
— Recommendation: that the City Council approve all recommended budget amendments noted in the Mid-Year Update for FY 2025-2026.

I. ITEMS FROM CITY COUNCILMEMBERS

14. Report of Attendance at Meetings
J. CLOSED SESSION

15. Conference with Legal Counsel – Existing Litigation — The City Council will conduct a closed session, pursuant to Government Code section 54956.9(d)(1), to discuss existing litigation: Name of Case: City of Lawndale v. LA Investment, LLC (LA Superior Court Case No. 20TRCV00065).

16. Public Employee Appointment
— The City Council will conduct a closed session, pursuant to Government Code section 54957(b), regarding the appointment of a City Manager.

17. Public Employee Appointment
— The City Council will conduct a closed session, pursuant to Government Code section 54957(b), regarding the appointment of an Interim City Manager.

18. Conference with Legal Counsel – Anticipated Litigation — The City Council will conduct a closed session, pursuant to Government Code section 54956.9(d)(4), because the City is considering whether to initiate litigation in one case.

K. ADJOURNMENT
The regular meeting scheduled to be held on February 16, 2026, was canceled by order of the City Council on November 3, 2025. The next regularly scheduled meeting of the Citv Council will be held on March 2, 2026, at 6:30 p.m. 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 Monday, February 2, 2026, was posted no less than 72 hours prior to the meeting. /s/ Yvette Palomo
Yvette Palomo, Assistant City Clerk
Date Posted: January 29, 2026

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Vanesa Alvarez, Administrative Assistant
SUBJECT: Los Angeles County Sheriff’s Department Update No supporting documentation was forwarded to the City Clerk Department for this item.

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Vanesa Alvarez, Administrative Assistant
SUBJECT: Los Angeles County Fire Department Update
No supporting documentation was forwarded to the City Clerk Department for this item.

Motion to read by title only and waive further reading of all ordinances listed on the Agenda

RECOMMENDATION
Staff recommends that the City Council read by title only and waive further reading of all ordinances listed on the agenda.

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Hrant Manuelian, Finance Director/City Treasurer SUBJECT: Accounts Payable Register

RECOMMENDATION
Staff recommends that City Council adopts Resolution No. CC-2602-002 authorizing the payment of certain claims and demands in the amount of $3,019,416.56.

Attachments
A. CC-2602-002 - AP Resolution - Feb. 2, 2026.pdf

Vanesa Alvarez, Administrative Assistant
Yvette Palomo, Assistant City Clerk
SUBJECT: Minutes of the Lawndale City Council Regular Meeting - January 5, 2026

RECOMMENDATION
Staff recommends that the City Council approve the minutes.

Attachments
Draft Minutes 1-05-2026

ATTACHMENT A

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Nick Petrevski, Associate Engineer
SUBJECT: Approve Second Amendment for On-Call Civil Engineering Services

BACKGROUND
Since March 4, 2024, LAE Associates, Inc., Onward Engineering, SA Associates, Transtech Engineers, Inc., and Willdan Engineering provide On-Call Civil Engineering services to the City. The existing contracts will expire on March 4, 2026, and it is in the best interest for the City of Lawndale to have these contracts active to assist the City with Engineering tasks.

STAFF REVIEW
Since March 4, 2024, LAE Associates, Inc., Onward Engineering, SA Associates, Transtech Engineers, Inc., and Willdan Engineering have been on contract with the City to provide on-call engineering services and have proven to be reliable and responsive. Staff received confirmation from each firm regarding their interest in extending the contract for an additional one (1) year period, through March 4, 2027, with a price increase beginning in March 4, 2026. There are no additional funds being requested and all other terms and conditions of the contract shall remain in full force and effect.

LEGAL REVIEW
The City Attorney has reviewed this report.

FISCAL IMPACT
There is no fiscal impact as there are sufficient funds budgeted for this second amendment.

RECOMMENDATION
Staff recommends that the City Council approve the Second Amendment to the Contract Services Agreement with LAE Associates, Inc., Onward Engineering, SA Associates, Transtech Engineers, Inc., and Willdan Engineering, extending the term of the agreement for one (1) year, through March 4, 2027.

Attachments
A. Transtech Engineers - Amendment 2
B. SA Associates - Amendment 2
C. Onward Engineering - Amendment 2
D. LAE Associates - Amendment 2
E. Willdan Engineering - Amendment 2
F. Transtech - Original Agreement and Amendment 1.pdf
G. SA Associates - Original Agreement and Amendment 1.pdf H. Onward - Original Agreement and Amendment 1.pdf
I. LAE Associates - Original Agreement and Amendment 1.pdf J. Willdan - Original Agreement and Amendment 1.pdf

ATTACHMENT A
LA #4816-0428-6948 v1
08235-0001
1 SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT

FOR ON-CALL CIVIL ENGINEERING SERVICES
This SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT (the "Second Amendment") is made and entered into this 4
th day of March, 2026, by and between the CITY OF
LAWNDALE, a municipal corporation (herein "City") and Transtech Engineers, Inc., a California corporation (herein "Contractor").

RECITALS
WHEREAS, City and Contractor entered into that certain Agreement entitled "Contract Services Agreement for On-Call Civil Engineering Services" (the "Agreement") on or about March 4, 2024, and WHEREAS, it is the desire of the City and the Contractor to amend the Agreement as set forth in this Second Amendment.

AMENDMENT
NOW, THEREFORE, it is hereby agreed that the Agreement is amended as follows:

1. Section 2.1 of the Agreement (Contract Sum) is amended to update the “Fee Proposal” attached hereto as Exhibit “C-1” and incorporated herein by this reference. All references to Exhibit “C” in the Agreement after the date of Second Amendment shall hereafter mean and refer to both Exhibit “C” and Exhibit “C-1”.

2. Section 3.4 of the Agreement, Entitled “Term” is hereby amended to extend the Contract term for one year (the “Extended Term”) such that the agreement will remain in place through March 4, 2027 as set forth on the “First Supplemental Schedule of Performance” attached hereto as “Exhibit D-1”. All references to Exhibit “D” in the agreement after the date of this Second Amendment shall hereafter mean and refer to both Exhibit “D” and Exhibit “D-1”.

MISCELLANEOUS PROVISIONS

1. Other Terms Unchanged. Subject to the foregoing amendments, the remainder of the terms in the Agreement will remain the same and are hereby ratified.

2. Authority to Execute. Each party represents and warrants that all necessary action has been taken by such party to authorize the undersigned to execute this Second Amendment and to bind the parties to the performance of its obligations.

3. Counterparts, Facsimile or other Electronic Signatures. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy has been signed by both parties. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. The parties hereby expressly agree to the use of electronic signatures, which shall be deemed to have the LA #4816-0428-6948 v1
08235-0001
2 same effect as an original signature. This Agreement and any amendment will be considered executed when the signature page of a party is delivered by facsimile or other electronic transmission.

Severability. If any term, condition or covenant of this Second Amendment is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Second Amendment will not be affected and the Second Amendment will be read and construed without the invalid, void or unenforceable provision.

IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the date first written above.

CITY:
_________________________________
Robert Pullen-Miles, Mayor
ATTEST:
_________________________________
Erica Harbison, City Clerk
APPROVED AS TO FORM:

Burke, Williams & Sorensen, LLP
_________________________________
Gregory M. Murphy, City Attorney
CONTRACTOR:

Transtech Engineers, Inc.

A California Corporation
By: __________________________________
Ali Cayir, Chief Executive Officer
By: __________________________________
Sybil Cayir, Secretary
Address: 13367 Benson Ave.

Chino, CA 91710
LA #4816-0428-6948 v1
08235-0001
3 EXHIBIT “C-1”

SCHEDULE OF COMPENSATION
LA #4816-0428-6948 v1
08235-0001
4 EXHIBIT “D-1”

SCHEDULE OF PERFORMANCE
Not Applicable

ATTACHMENT B
LA #4816-0428-6948 v1
08235-0001
1 SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT

FOR ON-CALL CIVIL ENGINEERING SERVICES
This SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT (the "Second Amendment") is made and entered into this 4
th day of March, 2026, by and between the CITY OF
LAWNDALE, a municipal corporation (herein "City") and SA Associates, a California corporation (herein "Contractor").

AMENDMENT
NOW, THEREFORE, it is hereby agreed that the Agreement is amended as follows:

MISCELLANEOUS PROVISIONS

1. Other Terms Unchanged. Subject to the foregoing amendments, the remainder of the terms in the Agreement will remain the same and are hereby ratified.

LA #4816-0428-6948 v1
08235-0001
3 EXHIBIT “C-1”

SCHEDULE OF COMPENSATION
LA #4816-0428-6948 v1
08235-0001
4 EXHIBIT “D-1”

SCHEDULE OF PERFORMANCE
LA #4816-0428-6948 v1
08235-0001
5 Not Applicable

ATTACHMENT C
LA #4816-0428-6948 v1
08235-0001
1 SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT

FOR ON-CALL CIVIL ENGINEERING SERVICES
This SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT (the "Second Amendment") is made and entered into this 4
th day of March, 2026, by and between the CITY OF
LAWNDALE, a municipal corporation (herein "City") and Onward Engineering, a California corporation (herein "Contractor").

AMENDMENT
NOW, THEREFORE, it is hereby agreed that the Agreement is amended as follows:

MISCELLANEOUS PROVISIONS

1. Other Terms Unchanged. Subject to the foregoing amendments, the remainder of the terms in the Agreement will remain the same and are hereby ratified.

IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the date first written above.

CITY:
_________________________________
Robert Pullen-Miles, Mayor
ATTEST:
_________________________________
Erica Harbison, City Clerk
APPROVED AS TO FORM:

Burke, Williams & Sorensen, LLP
_________________________________
Gregory M. Murphy, City Attorney
CONTRACTOR:

Onward Engineering
A California Corporation
By: __________________________________
Majdi Ataya, President
By: __________________________________
Muhammad Ataya, Secretary
Address: 300 S. Harbor Blvd. STE 814
Anaheim, CA 92805
LA #4816-0428-6948 v1
08235-0001
3 EXHIBIT “C-1”

SCHEDULE OF COMPENSATION
LA #4816-0428-6948 v1
08235-0001
4 EXHIBIT “D-1”

SCHEDULE OF PERFORMANCE
Not Applicable

ATTACHMENT D

ATTACHMENT E
LA #4816-0428-6948 v1
08235-0001
1 SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT

FOR ON-CALL CIVIL ENGINEERING SERVICES
This SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT (the "Second Amendment") is made and entered into this 4
th day of March, 2026, by and between the CITY OF
LAWNDALE, a municipal corporation (herein "City") and Willdan Engineering, a California corporation (herein "Contractor").

AMENDMENT
NOW, THEREFORE, it is hereby agreed that the Agreement is amended as follows:

2. Section 3.4 of the Agreement, Entitled “Term” is hereby amended to extend the Contract term for one year (the “Extended Term”) such that the agreement will remain in place through March 4, 2026 as set forth on the “First Supplemental Schedule of Performance” attached hereto as “Exhibit D-1”. All references to Exhibit “D” in the agreement after the date of this Second Amendment shall hereafter mean and refer to both Exhibit “D” and Exhibit “D-1”.

MISCELLANEOUS PROVISIONS

1. Other Terms Unchanged. Subject to the foregoing amendments, the remainder of the terms in the Agreement will remain the same and are hereby ratified.

IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the date first written above.

CITY:
_________________________________
Robert Pullen-Miles, Mayor
ATTEST:
_________________________________
Erica Harbison, City Clerk
APPROVED AS TO FORM:

Burke, Williams & Sorensen, LLP
_________________________________
Gregory M. Murphy, City Attorney
CONTRACTOR:

Willdan Engineering
A California Corporation
By: __________________________________
Vanessa Munoz, President
By: __________________________________
Kate Nguyen, Secretary
Address: 2401 E. Katella Ave. STE 300
Anaheim, CA 92806
LA #4816-0428-6948 v1
08235-0001
3 EXHIBIT “C-1”

SCHEDULE OF COMPENSATION
LA #4816-0428-6948 v1
08235-0001
4 EXHIBIT “D-1”

SCHEDULE OF PERFORMANCE
Not Applicable

ATTACHMENT F

ATTACHMENT G

ATTACHMENT H

ATTACHMENT I

ATTACHMENT J

BACKGROUND
The City of Lawndale received a claim for personal injury damage on or about January 7, 2026, filed by Eric Boim, Esq., LA Century Law, representing Dean Neblett (Claimant). The claim filed alleged that on or about August 8, 2025, the claimant was injured while riding his bicycle on Manhattan Beach Boulevard and Lemoli Avenue, El Camino Village, County of Los Angeles, California.

On or about January 13, 2026, the City received a claim for property damage filed by Louise K. Gomes (Claimant). The claim filed alleged that on or about January 2, 2026, their personal vehicle was damaged by a pothole on Hawthorne Boulevard, while exiting the Interstate 405 off ramp in Lawndale, California.

STAFF REVIEW
All claims were referred to the City’s current third-party claims administrator, California JPIA - Athens Program Insurance Services, for review. Athens Program Insurance Services reviewed the claims as filed and determined that the liability for the claims could not be assigned to the City and recommends that the City reject the claims as filed.

LEGAL REVIEW
None.

RECOMMENDATION
Staff recommends City Council reject the claim filed by LA Century Law on behalf of Dean Neblett and Louise K. Gomes and instruct staff to process the appropriate correspondence to the claimant.

Attachments
ATTACHMENT A - Claim for Damages -Dean Neblett.pdf
ATTACHMENT B -Claim for Damages - Louise K. Gomes.pdf

ATTACHMENT A

P.O. Box 4005 • Concord, CA 94524 • 866.482.3535 • athensadmin.com January 26, 2026
TO: City of Lawndale
ATTENTION: Risk Management
RE: Claim : Dean Neblett vs. City of Lawndale
Claimant : Dean Neblett
Date of Event : August, 8, 2025
Claim Number : CJP-3055707
Please allow this correspondence to acknowledge receipt of the captioned claim. Please take the following action:
• CLAIM REJECTION: Send a standard rejection letter to Dean Neblett’s counsel.

Please include a Proof of Mailing with your rejection notice to the claimant’s attorney. Please provide us with a copy of the Notice of Rejection and copy of the Proof of Mailing. If you have any questions feel free to contact the assigned adjuster or the undersigned supervisor.

Very Truly Yours,
Sori Chung
Sori Chung
Senior Claims Examiner

P.O. Box 4005 • Concord, CA 94524 • 866.482.3535 • athensadmin.com January 28, 2026
TO: City of Lawndale
ATTENTION: Shaundra Burnam, Raylette Felton

RECOMMENDATION TO REJECT
RE:

Claimant: Louise Gomes
Our Client: City of Lawndale
Date of Loss: 01-02-2026
Our File Number: CJP-3055773
Please allow this correspondence to acknowledge receipt of the captioned claim. Please take the following action:
❖ CLAIM REJECTION: Send a standard rejection letter to the claimant.

Please include proof of mailing with your rejection notice to the claimant. Please provide us with a copy of the city’s notice of rejection and a copy of the proof of mailing. If you have any questions, please feel free to contact the assigned adjuster or the undersigned claims specialist.

Janice Bartlett
Claims Examiner II Property & Casualty
Athens Program Insurance Services, LLC
p: 714.912.0242 | f: 1714.464.4465
e: [email protected] | w: www.athensadmin.com
Athens Program Insurance Services CA License No.: 2L60159

Case 26-01: An Ordinance to Adopt by Reference the 2025 Los Angeles County Building, Electrical, Mechanical, Plumbing, Residential, and Existing Building Codes and the CA Green Building Code

BACKGROUND
The California Building Standards Code establishes statewide codes and regulations for building construction and fire safety. The California Building Standards Code is published every three years by order of the California legislature. The 2025 California Building Standards Code was published by the State on July 1, 2025 and goes into effect on January 1, 2026.

The County of Los Angeles, whom the City contracts with for plan checking and building inspection services, exercised the right granted by the State to establish more restrictive building standards given that the amendments were reasonably necessary because of local climatic, geological, and/or topographic conditions.

The State codes will be codified as Los Angeles County Code Title 26 (Building Code), Title 27 (Electrical Code), Title 28 (Plumbing Code), Title 29 (Mechanical Code), Title 30 (Residential), California Green Building Standards Code, and Title 33 (Existing Building Code) of the Los Angeles County Code.

Historically, the City has adopted the Los Angeles County codes as the City’s uniform codes in Title 15 of the Lawndale Municipal Code (LMC).

STAFF REVIEW
The 2025 California Building Standards Code applies to nearly all commercial and residential structures in California. Staff has thoroughly reviewed all of the proposed changes and found them to be minor changes or amendments to existing requirements. The following sections are being proposed for updates:

ENVIRONMENTAL ASSESSMENT
Staff is requesting that the City Council find that the project is exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where, as here, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

PUBLIC REVIEW
The Notice of public hearing was posted on the City’s notice board located outside City Hall and published in the Daily Breeze on January 23, 2026.

A further public hearing will be scheduled for March 2nd, 2026 and published notice will be provided consistent with California Government Code section 50022.3.

LEGAL REVIEW
The City Attorney reviewed the proposed ordinance and has approved it as to form.

FISCAL IMPACT
No funding is required for this item.

RECOMMENDATION
Staff recommends that City Council read Ordinance No. 1212-26 by title only and direct staff to publish a public hearing notice for consideration of the ordinance at the next Regular City Council Meeting on March 2, 2026.

Attachments
Attachment A - 1212-26.pdf
Attachment B - Interim Ad Draft.pdf

Case 26-01: An Ordinance to Adopt by Reference the 2025 Los Angeles County Building, Electrical, Mechanical, Plumbing, Residential, and Existing Building Codes and the CA Green Building Code

Historically, the City has adopted the Los Angeles County codes as the City’s uniform codes in Title 15 of the Lawndale Municipal Code (LMC).

Title 26, Building Code;
Title 27, Electrical Code;
Title 28, Plumbing Code;
Title 29, Mechanical Code;
Title 30, Residential Code;
California Green Building Standards; and
Title 33, Existing Building Code
During the last update cycle in 2022, the City Council did not adopt the County’s suggested Green Building Codes because the regulations were considered to be too onerous on property owners, such that the City adopted only the California Green Building codes. This update cycle, staff is again recommending that the City not adopt the County’s Green Building codes, but rather the California Green Building Code because the County’s Green Building Codes are again believed by staff to be more restrictive and would be onerous on property owners.
8 ENVIRONMENTAL ASSESSMENT
Staff is requesting that the City Council find that the project is exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where, as here, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

PUBLIC REVIEW
The Notice of public hearing was posted on the City’s notice board located outside City Hall and published in the Daily Breeze on January 23, 2026.

A further public hearing will be scheduled for March 2nd, 2026 and published notice will be provided consistent with California Government Code section 50022.3.

LEGAL REVIEW
The City Attorney reviewed the proposed ordinance and has approved it as to form.

FISCAL IMPACT
No funding is required for this item.

Attachments
Attachmnet A - Ordinance
Attachment B - Interim Ad Draft.pdf

ATTACHMENT A

Attachment B
Interim Ad Draft
CASE no 26-01 - 2025 Building Code Update - Page 1 of 2 FILER
Jose Hernandez
[email protected]
(310) 973-3206

FILING FOR
Daily Breeze

INTERIM AD DRAFT
This is the proof of your ad scheduled to run in Daily Breeze on the dates indicated below. If changes are needed, please contact us prior to deadline at (310) 543-6635.

Notice ID: 81c69Y80v9cYFds3SQxf | Proof Updated: Jan. 21, 2026 at 11:41am PST Notice Name: CASE no 26-01 - 2025 Building Code Update
This is not an invoice. Below is an estimated price, and it is subject to change. You will receive an invoice with the final price upon invoice creation by the publisher.

Columns Wide: 3
Total Column Inches: 13.42
Number of Lines: 46
Ad Class: Legals
01/23/2026: City Notices 392.70
Digital Rate 50.00
Subtotal $442.70
Tax $0.00
Processing Fee $0.00
Total $442.70
See Proof on Next Page
CASE no 26-01 - 2025 Building Code Update - Page 2 of 2 Attachment B
Interim Ad Draft
CASE no 26-01 - 2025 Building Code Update - Page 1 of 2 FILER
Jose Hernandez
[email protected]
(310) 973-3206

FILING FOR
Daily Breeze

INTERIM AD DRAFT
This is the proof of your ad scheduled to run in Daily Breeze on the dates indicated below. If changes are needed, please contact us prior to deadline at (310) 543-6635.

Raylette Felton, Interim City Manager
Gregory M. Murphy, City Attorney
SUBJECT:

Consideration and Selection of an Executive Recruitment Firm for the City Manager Position

BACKGROUND
In December 2025, City Manager Sean Moore resigned from City employment. To fill this critical leadership vacancy, staff is requesting City Council further review and discuss proposals submitted by qualified executive recruitment firms and authorize the selection of a firm to conduct a comprehensive recruitment process for the City Manager position.

STAFF REVIEW
Recruitment processes for a City Manager is typically conducted by a professional executive recruitment firm with experience in the highly competitive market for experienced and qualified executives. Executive recruiters play an important role in attracting a qualified pool of senior-level public sector professionals and managing a structured, confidential, and comprehensive selection process. An executive recruitment process generally includes: facilitating discussions with City Council to develop a detailed position profile that defines the City’s needs, organizational challenges, priorities, and leadership expectations; preparation of recruitment materials and targeted advertising; proactive outreach to potential candidates; screening and evaluation of applicants; presentation of qualified candidates to the City Council; coordination and scheduling structured interviews; and background/ reference checks for top candidate.

Staff solicited proposals from qualified executive recruitment firms and received responses from five (5) firms: Bob Murray & Associates, CPS HR Consulting, Koff & Associates, Ralph Anderson & Associates, and Tripepi Smith Talent Solutions. The proposals have been provided to the City Council for review in advance of this item appearing on the agenda, to allow the City Council to make an expedient decision. The proposed fees range from $25,000 to $30,000, and estimated recruitment timelines range from 12 weeks to 16 weeks. A brief summary of each proposal is provided in the Attachment to this report.

Staff completed a preliminary review of the submitted proposals and determined that all responding firms possess the experience and qualifications necessary to complete a successful City Manager recruitment. Staff is seeking City Council’s direction regarding the selection of a firm. Given that the cost difference between the lowest-priced proposal and the highest-priced one is minimal in light of the importance of this decision, staff understands that the City Council will make its decision based on the firm with which the Councilmember are most comfortable. Upon selection, staff will work with the selected firm to finalize a contract service agreement, in a form approved by the City Attorney’s Office. Staff will thereafter schedule a meeting with the City Council to introduce the chosen firm's key personnel and to allow them to begin the recruitment process with input from the City Council.

LEGAL REVIEW
The City Attorney’s office has reviewed and approved staff report.

FISCAL IMPACT
Funding for this service is currently appropriated in the Administrative Services Recruitment line item 100- 150-510.800. No additional budget appropriation will be needed

RECOMMENDATION
Staff recommends City Council: 1.) Review and discuss this report regarding professional executive recruitment services; 2.) Provide direction to staff regarding City Council’s selection of a firm to conduct executive recruitment services for the City Manager position; and 3.) Authorize staff to execute a professional contract services agreement with the selected firm, in a form approved by the City Attorney’s Office; or 3.) Provide other direction as appropriate.

Attachments
Attachment - Executive Search Firm Summary.pdf

ATTACHMENT A
Proposal Response Summary
Executive Recruitment Firms - City Manager
Executive Search Firm Proposal Point of Contact
Bob Murray & Associates
• 34+ years of Executive Recruitment
Experience
Cost $28,000
• Timeline – 13-16 weeks
• One year guarantee
• Recent City Manager Recruitments - Manhattan
Beach 2024, Downey 2023, Vernon 2024, Murrieta
2024
Yasmin Beers, Executive VP & Sr.

Executive Recruiter, (33 yrs. Local
government experience former
CM)
CPS HR Consulting
• 20+ years of Executive Recruitment
Experience
$30,000 (flat fee)
• Timeline – 14-16 weeks
• One year guarantee
• Recent City Manager Recruitments - Sacramento
2025, Arcadia 2024, Arcata 2024, Simi Valley
2024
Eric Won Savage, Principal
Executive Recruiter, (20 yrs.

Public sector HR experience) and
Rachael Danke, Associate
Executive Recruiter
*Koff & Associates
• 40+ years of Executive Recruitment
Experience
$25,000 (not to exceed)
• Timeline – 12-14 weeks
• One year guarantee
• Recent City Manager Recruitments - Lynwood
2025, Palm Springs, San Bernardino, Santa Fe
Springs, Signal Hill.

Frank Rojas, Recruitment
Manager (35 yrs. Recruitment/
placement experience)
Ralph Anderson & Associates
• 50+ years of Executive Recruitment
Experience.
$28,000 (fixed fee)
• Timeline – 12 weeks
• One year guarantee
• Recent City Manager Recruitments - Yorba Linda,
Whittier, West Hollywood, Cypress, South
Pasadena, San Bernardino, La Palma, Loma Linda.

Fred Wilson, Senior Consultant
(35 years recruiting -former CM)
Tripepi Smith Talent Solutions (parent
company of Tripepi Smith & Associates)
$26,500 (additional cost for other expenses)
• Timeline – 14 weeks
• One year guarantee
• Recent City Manager Recruitments - Blue Lake,
West Covina, Lomita 2024
Christine Martin, Executive
Recruiter (former Assistant CM20 yrs. local government experience)

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ https://www.lawndalecity.ca.gov
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Gregory M. Murphy, City Attorney
PREPARED BY: Raylette Felton, Interim City Manager
SUBJECT: Report on Investigation into Allegations Against Councilmember

BACKGROUND
In October of 2024, certain allegations were leveled against Councilmember Bernadette Suarez. These allegations were referred by the City Attorney’s Office to neutral and independent third parties for investigation and findings of fact. The independent third parties had the power, if necessary, to report back to the City Attorney’s Office or to instigate proceedings. The independent third parties have completed their investigations.

STAFF REVIEW
The City Attorney’s Office has reviewed the responses from the independent third parties. In the course of one investigation, allegations were raised against other City personnel that also needed to be investigated.

Those allegations were investigated concurrently with the investigation regarding Councilmember Suarez. In order to protect the confidentiality of those related matters as required by State and Federal employment laws, they will not be addressed here.

Each independent third party investigating the allegations involving Councilmember Suarez reached the conclusion that, based on all of the facts presented and discovered through investigation, no action should be taken against Councilmember Suarez. As such, this matter is considered closed.

LEGAL REVIEW
The City Attorney will make a full verbal report to the City Council during the meeting, but will not answer questions regarding that report due to concerns over employee privacy and legal protections for the City.

FISCAL IMPACT
None.

RECOMMENDATION
Respectfully recommends that City Council receive and file this report and the City Attorney’s verbal report.

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Hrant Manuelian, Finance Director/City Treasurer SUBJECT: Quarterly Investment Report for the Quarter Ended December 31, 2025

BACKGROUND
The attached Quarterly Investment Report for the quarter ended December 31, 2025, is provided to City Council per the City of Lawndale’s Investment Policy and State of California’s Government Code Section 53646.

STAFF REVIEW
As of December 31, 2025, the City had total cash and investments (cost basis) of $58,074,254 plus $2,071,628 cash with fiscal agent held in a trust for the Lawndale Redevelopment Agency’s Tax Allocation Bond 2009 issue, $1,150 in petty cash and $807,148 in maintained in two retirement enhancement plans for PARS.

The Federal Reserve has cut interest rates by 25 basis points (0.25%) in each of its last three meetings which were September, October, and December 2025. The next meeting is on January 28 th, and it is currently
expected that rates will not change. However, it is anticipated that there will be further rates cut as the economy stabilizes. As rates are cut, investment returns are expected to decrease as well.

The State Local Agency Investment Fund (LAIF) had an interest rate of 4.4% on December 31, 2024, and has slightly decreased to 4.09% as of December 31, 2025. Rates going forward are generally expected to gradually decrease. We continue to maintain a majority of cash in LAIF and the City’s checking account.

For the quarter ending December 31, 2025, the City has remained very liquid with 75.25% of our portfolio in on-demand accounts. The remainder of the portfolio includes 5.93% short-term (maturing in less than one year), 7.26% mid-term (one to three years maturity), and 11.57% long-term (maturing from three to five years) investments. For the quarter ended December 31, 2025 the City received interest income of $457,153.

As it appears that interest rates will continue to go down for the remainder of this year and next, we look for opportunities to maximize returns on City funds. The City’s investments continue to remain intact and have not been affected by the recent volatility in the markets. We do not expect there to be any significant changes to our investments as we only purchase securities that we know we can hold on to until maturity at which time we will receive the full amount of the principal back from the issuer. As the market continues to change, we will keep a close watch and take advantage of any upcoming investments. Cash in bank will be monitored and is expected that more will be used to purchase either bonds or CD’s to take advantage of interest to the extent possible. For the current quarter which will be ending March 30, 2026 there are 2 CD’s that will be maturing both in March. Also, there are two Agency Bonds which may be called one in January and the other in February 2026. The goal is to maintain a healthy balance of cash while maximizing returns.

The investment program provides sufficient liquidity to meet six months of estimated expenditures. All investments are in compliance with California state code 503600 and the City of Lawndale Investment policy.

LEGAL REVIEW
The City Attorney’s office has reviewed this staff report and has approved it as to form.

FISCAL IMPACT
Not Applicable.

RECOMMENDATION
Staff recommends that the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2025.

Attachments
Q2 FY 25-26 Investments.pdf

ATTACHMENT A
r
Cash 12,014,225
Investments 46,060,029
Cash w/Fiscal Agent 2,071,628
Petty Cash 1,150
Public Agency Retirement Services
(PARS)- Retirement Enhancement
Plan 788,028
PARS/ City of Lawndale Excess
Benefit Trust - US Bank 19,120 807,148
Total Cash and Investments 60,954,179

CITY OF LAWNDALE

TREASURY REPORT
For Quarter Ended December 31, 2025
H:\Investments\Investment reports\25-26\Q2 FY 25-26 Investments 12-31-25 Investment Type Market Value
Checking Account 12,014,225
Certificate of Deposit 11,405,106
US Government Agency Securities 5,009,110
US Treasury Fund 3,125,032
LAIF State Pool 26,543,651
TOTAL 58,097,124
Portfolio Statistics
For Quarter Ended December 31, 2025
Portfolio Composition

CITY OF LAWNDALE

INVESTMENT REPORT
Checking
Account
21% Certificate of
Deposit
20%
US Government
Agency
Securities
8%
US Treasury
Fund
5%
LAIF State Pool
46%
Checking Account Certificate of Deposit
US Government Agency Securities US Treasury Fund
LAIF State Pool
H:\Investments\Investment reports\25-26\Q2 FY 25-26 Investments 12-31-25 Par Value Coupon Rate
Moody's/ S&P
Rating Purchase Date
Maturity/
Called Date
Days to
Maturity
Yield to
Maturity Cost Basis Category total
(memo only)
Market Value
On Call Deposits
Checking Account- Wells Fargo 12,014,225 N/A N/A Demand 1 None 12,014,225 12,014,225FICA Fed Ins Cash Intrafi 2,015,346 N/A N/A Demand 1 Varies 2,015,346 2,015,346First AM Treas OB FD 3,125,032 N/A N/A Demand 1 Varies 3,125,032 3,125,032Local Agency Investment Fund- City of Lawndale 26,542,008 N/A N/A Demand 1 4.09% 26,542,008 26,542,008Local Agency Investment Fund- Lawndale Housing Authority 1,643 N/A N/A Demand 1 4.09% 1,643 1,643 On Call Deposits 43,698,254 43,698,254 43,698,254
Short-Term Investments (1 Year or Less)
Time Deposits:Numerica Cr Un 249,000 4.75% FDIC 2/24 3/2/2026 61 4.75% 249,000 249,388 First GTY Bk 244,000 4.15% FDIC 9/24 3/6/2026 65 4.15% 244,000 244,112Eaglebank 248,000 5.05% FDIC 6/24 6/25/2026 176 5.05% 248,000 249,649Customers Bank CD 245,000 4.00% FDIC 8/24 8/17/2026 229 4.00% 245,000 245,522Rize FCU CD 249,000 4.15% FDIC 8/24 8/20/2026 232 4.15% 249,000 249,842Synchrony Bank Draper UT CD 247,000 0.90% FDIC 8/21 8/27/2026 239 0.90% 247,000 242,875Chartway Federal Credit Union 240,000 5.30% FDIC 8/23 8/28/2026 240 5.30% 240,000 242,676Florida Cr 240,000 4.10% FDIC 8/29 8/28/2026 240 4.10% 240,000 240,718Global Federal Dredit Union 249,000 4.10% FDIC 8/29 8/28/2026 240 4.10% 249,000 249,745Medallion Bank UT CD 247,000 0.85% FDIC 8/21 8/31/2026 243 0.85% 247,000 242,552UBS Bank USA CD 247,000 0.95% FDIC 9/21 9/9/2026 252 0.95% 247,000 242,559Bank of America 245,000 3.95% FDIC 9/24 9/11/2026 254 3.95% 245,000 245,578First Fndtn Bank 243,000 5.00% FDIC 6/24 12/14/2026 348 5.00% 243,000 246,254Amoco Fed Credit Union 249,000 3.80% FDIC 12/30 12/30/2026 364 3.80% 249,000 249,364 3,442,000 3,440,833 3,442,000
US Government Agency Securities:
- - -
- - -
Short-Term Investments (1 Year or Less) 3,442,000 3,442,000 3,440,833 Medium-Term Investments (1 to 3 Years)
Time Deposits:Austin Telco Fed Cr 249,000 4.30% FDIC 2/25 2/16/2027 412 4.30% 249,000 250,880Valley Natl Bk 247,000 4.45% FDIC 2/24 2/22/2027 418 4.45% 247,000 249,351Spokane Teachers CR UN CD 248,000 4.75% FDIC 4/24 4/15/2027 470 4.75% 248,000 251,517Live Oak Bank 244,000 3.65% FDIC 10/23 4/28/2027 483 3.65% 244,000 244,073Wexford Community Credit Union 248,000 4.75% FDIC 6/24 6/28/2027 544 4.75% 248,000 252,000First Technology FCU CD 249,000 4.10% FDIC 8/24 8/20/2027 597 4.10% 249,000 250,753

CITY OF LAWNDALE

DETAIL OF INVESTMENTS
For Quarter Ended December 31, 2025
H:\Investments\Investment reports\25-26\Q2 FY 25-26 Investments 12-31-25 First Merchants Bank 245,000 3.75% FDIC 9/24 9/10/2027 618 3.75% 245,000 245,311 American Express Natl BK 245,000 3.85% FDIC 9/24 9/13/2027 621 3.85% 245,000 245,806Tuscon Fd Cr 249,000 3.65% FDIC 9/30 9/30/2027 638 3.65% 249,000 248,890Third Fed Svgs 245,000 3.70% FDIC 12/19 12/20/2027 719 3.70% 245,000 245,034Empower Fed Cr Union 248,000 4.75% FDIC 6/24 6/26/2028 908 4.75% 248,000 253,917Texas Tr Cr 249,000 3.60% FDIC 9/30 9/29/2028 1,003 3.60% 249,000 247,937American National Bank 249,000 3.55% FDIC 10/23 10/31/2028 1,035 3.55% 249,000 247,526 3,215,000 3,232,996 3,215,000
US Government Agency Securities:Federal Home Loan Banks 1,000,000 5.000% Aa1/AA+ 6/24 4/15/2027 470 5.000% 1,000,000 1,002,480 1,000,000 1,002,480 1,000,000
Medium-Term Investments (1 - 3 Years) 4,215,000 4,235,476 4,215,000Long-Term Investments (3 to 5 Years) Time Deposits:USAlliance Fed CU 249,000 4.15% FDIC 1/25 1/31/2029 1,127 4.15% 249,000 251,642Baxter Credit Union 249,000 4.20% FDIC 2/25 2/22/2029 1,149 4.20% 249,000 252,013Morgan Stanley 245,000 3.95% FDIC 8/27 8/27/2029 1,335 3.95% 245,000 246,022BMW Bank 245,000 3.90% FDIC 8/29 8/29/2029 1,337 3.90% 245,000 245,801Grand River Bank 249,000 3.60% FDIC 10/10 10/10/2029 1,379 3.60% 249,000 247,060United Bankers Bank 249,000 3.50% FDIC 10/23 10/31/2029 1,400 3.50% 249,000 246,146Truxton Tr Co Nashville Tenn 249,000 4.10% FDIC 2/25 2/14/2030 1,506 4.10% 249,000 251,470Goldman Sachs 245,000 3.60% FDIC 9/30 9/30/2030 1,734 3.60% 245,000 242,148Gulf Coast Bank & Trust 245,000 3.60% FDIC 10/23 10/29/2030 1,763 3.60% 245,000 242,036Sallie Mae Bank 245,000 3.85% FDIC 12/17 12/17/2030 1,812 3.85% 245,000 244,635Medallion Bank 249,000 3.70% FDIC 12/23 12/23/2030 1,818 3.70% 249,000 246,958 2,719,000 2,715,931 2,719,000
US Government Agency Securities:Federal Farm Cr Bks 1,000,000 4.96% Aa1/AA+ 1/25 1/22/2029 1,118 4.96% 1,000,000 999,830 Federal Home Loan Banks 1,000,000 4.20% Aa1/AA+ 10/24 10/9/2029 1,378 4.20% 1,000,000 1,001,000Federal Farm Cr Bks 1,000,000 4.45% Aa1/AA+ 8/25 2/25/2030 1,517 4.45% 1,000,000 999,840Federal Home Loan Banks 1,000,000 4.65% Aa1/AA+ 2/25 2/26/2030 1,518 4.65% 1,000,000 1,005,960 4,000,000 4,006,630 4,000,000
Long-Term Investments (3 to 5 Years) 6,719,000 6,722,561 6,719,000 Total Cash and Investments 58,074,254 58,074,254 58,097,124 H:\Investments\Investment reports\25-26\Q2 FY 25-26 Investments 12-31-25

Annual Comprehensive Financial Report (ACFR) for the Year Ended June 30, 2025

BACKGROUND
The City retained Rogers, Anderson, Malody & Scott, LLP, an independent Certified Public Accounting firm to perform the financial statement audit for fiscal year ended June 30, 2025. The auditor has issued an “unqualified” or clean opinion that the financial statements present fairly, in all material respects, the financial position and activities of the City for fiscal year ended June 30, 2025, and was issued on December 23, 2025.

STAFF REVIEW
Presented for City Council’s review are the annual financial statements for the City of Lawndale for the year ended June 30, 2025. The financial statements include the Government-wide financial statements, fund financial statements and notes to the financial statements.

Government-wide financial statements are consolidated City-wide financial statements required to disclose the consolidated financial activities and position of the City so it can be compared with private businesses.

All funds except the Lawndale Successor Agency, which is held by the City in a fiduciary trust capacity, are included in the government-wide statements. The government-wide statements are prepared on an accrual basis, meaning assets are capitalized and expensed over the fiscal years they are in use rather than when they were purchased; debt payments are offset against the outstanding debt balance rather than expensed when paid, and revenue and expenses are reported in the period the transaction exchange occurred rather than the payment or receipt date.

In the government-wide statements, the City incurred $26.2 million in expenses for the year ended June 30, 2025, and $32.7 million in revenue ($12.2 million program and $20.5 million general revenue) was earned, resulting in a $6.6 million increase in net position. The Net Position, which is the amount that City assets exceed its liabilities was $109.5 million on June 30, 2025.

In the fund statements, the General Fund is the major operating fund of the City. The financial statements are presented on a modified cash basis of accounting, which means revenue and expenses are recognized when measurable and available. A 60-day availability period is used for financial statement purposes. For the fiscal year ended June 30, 2025, the General Fund incurred $18.9 million in expenditures and earned $22.1 million in revenue. General Fund assets exceeded liabilities by $38.5 million (Fund Balance) of which $36.6 million was unassigned/available for future use as of June 30, 2025.

Other Audit Reports
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The auditor did identify one deficiency that was considered to be a significant deficiency and did not identify any material weakness. A significant deficiency is less severe than a material weakness.

SAS 19 Letter (Audit Conclusion Letter)
This letter is addressed to the City Council and includes the following comments; Management’s estimates were reasonable in relation to the financial statements taken as a whole.

The auditors did not encounter any significant difficulties in dealing with management relating to the performance of the audit.

No disagreements with management arose during the course of the audit.

In addition, the auditors performed procedures as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution (commonly known as the GANN Limit). Their report was issued on December 23, 2025 with no exceptions noted.

LEGAL REVIEW
The City Attorney’s office has reviewed this staff report and has approved it as to form.

FISCAL IMPACT
Not Applicable.

RECOMMENDATION
Staff recommends that the City Council receive and file the Annual Comprehensive Financial Report for the Year Ended June 30, 2025.

Attachments
Financial Statements Lawndale FY 2024.pdf
GAGAS - Lawndale.pdf
SAS 114 - Lawndale.pdf
GANN - Lawndale.pdf

ATTACHMENT A

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City of Lawndale,
California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Prepared by:

Finance Department

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City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025

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 ................................................................................................. 14 Statement of Activities ...................................................................................................... 15 Fund Financial Statements
Balance Sheet - Governmental Funds .............................................................................. 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .............................................................................................. 17 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................................................................................... 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................... 19 Statement of Fiduciary Net Position – Fiduciary Funds ..................................................... 20 Statement of Changes in Fiduciary Net Position –
Fiduciary Funds ............................................................................................................. 21 Notes to Financial Statements ................................................................................................ 22 Required Supplementary Information
Notes to Required Supplementary Information ....................................................................... 66 Budgetary Comparison Schedules
General Fund ...................................................................................................................... 67 Restricted Urban Development ........................................................................................... 68 ARPA Fund ......................................................................................................................... 69 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 ...................... 70 Schedule of Plan Contributions - CalPERS Cost Sharing Miscellaneous Plan ..................... 71 Schedule of Changes in Net Pension Liability and Related Ratios as of the Measurement Date - PARS Retirement Enhancement Plan .................................................................... 72 Schedule of Plan Contributions - PARS Retirement Enhancement Plan .............................. 74 Schedule of Investment Returns - PARS Retirement Enhancement Plan ............................ 75 Schedule of Changes in the Total OPEB Liability and Related Ratios ................................. 76 City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
TABLE OF CONTENTS (Continued)
Page
Number
Supplementary Information
Combining Balance Sheet – Non-Major Governmental Funds ................................................ 81 Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Non-Major Governmental Funds ........................................... 87 Budgetary Comparison Schedule – Special Revenue Funds
Gas Tax .............................................................................................................................. 93 Air Quality ........................................................................................................................... 94 Proposition A Local Transit Assistance ................................................................................ 95 Narcotics Forfeiture ............................................................................................................. 96 State COPS Grant ............................................................................................................... 97 Used Oil Recycling Grant .................................................................................................... 98 Lawndale Cable Usage Corporation .................................................................................... 99 Department of Conservation Grant .................................................................................... 100 Measure M Local Return ................................................................................................... 101 Art in Public Places ........................................................................................................... 102 SB1 RMRA ........................................................................................................................ 103 Groundwater Sustainability (AB 939) ................................................................................. 104 Disability Access (AB 1379) .............................................................................................. 105 Measure W Safe Clean Water ........................................................................................... 106 SB1383 Local Assistance .................................................................................................. 107 SB2 Housing Grant ............................................................................................................ 108 Local Early Action Plan (LEAP) .......................................................................................... 109 Lawndale Housing Authority .............................................................................................. 110 Measure A .......................................................................................................................... 111 PLBP Grant ........................................................................................................................ 112 Budgetary Comparison Schedule – Capital Projects Funds
TDA Article 3 (Metro) ......................................................................................................... 113 Proposition C Local Transit Assistance ............................................................................. 114 Community Development Block Grant ............................................................................... 115 Prop C25 Grant ................................................................................................................. 116 Measure R ......................................................................................................................... 117 Metro STPL Exchange 2017 .............................................................................................. 118

STATISTICAL SECTION
Financial Trends
Net Position by Component ............................................................................................... 120 Changes in Net Position .................................................................................................... 121 Fund Balances of Governmental Funds ............................................................................ 123 Changes in Fund Balance of Governmental Funds ............................................................ 124 Debt Capacity
Direct and Overlapping Debt ............................................................................................. 125 Ratios of Outstanding Debt by Type ................................................................................... 126 Ratios of General Bonded Debt Outstanding ...................................................................... 127 City of Lawndale
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
TABLE OF CONTENTS (Continued)
Page
Number
STATISTICAL SECTION (Continued)
Direct & Overlapping Property Rates .................................................................................. 128 Revenue Capacity
2023/24 Use Category Summary ...................................................................................... 129 Property Tax Dollar Breakdown ......................................................................................... 130 2023/24 Roll Summary ...................................................................................................... 131 Net Taxable Assessed Value History ................................................................................ 132 Assessed Value of Taxable Property .................................................................................. 133 Demographic and Economic Information
2023/24 Top Ten Property Taxpayers ............................................................................... 134 2014/15 Top Ten Property Taxpayers ............................................................................... 135 Demographic and Economic Statistics .............................................................................. 136 Principal Employers ........................................................................................................... 137 Sales Value History ........................................................................................................... 138 Taxable Sales by Category ............................................................................................... 139 Top 25 Sales Tax Producers for Calendar Year 2023 ....................................................... 140 Top 25 Sales Tax Producers for Calendar Year 2014 ....................................................... 141 Operating Information
Full-Time Equivalent City Employees by Function ............................................................. 142

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CITY ELECTED OFFICIALS
Mayor
Robert Pullen-Miles
Term Expires: November 2026
Mayor Pro Tem
Pat Kearney
Term Expires:

November 2026
Councilmember
Bernadette Suarez
Term Expires:

November 2026
Councilmember
Sirley Cuevas
Term Expires:

November 2028
Councilmember
Francisco M. Talavera
Term Expires:

November 2028
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
Peter Kann
Director of Public Works/ City Engineer: Lucho Rodriguez, P.E.

Assistant City Clerk:

Director of Community Services:

Director of Municipal Services:

Yvette Palomo
Jason Minter
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, 2024
Executive Director/CEO
viii
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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 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, 2025, 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 referred to above 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, 2025, 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, issued by the Comptroller General of the United States (Government Auditing Standards). 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.

Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, and No. 102, Certain Risk Disclosures. Our opinions are not modified with respect to this matter.

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

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

To the Honorable Mayor and 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 Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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 entity’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report (ACFR). The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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
December 23, 2025

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MANAGEMENT DISCUSSION AND ANALYSIS

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City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
4 This section of the City of Lawndale’s (the City) Annual Comprehensive Financial Report (ACFR) provides a narrative overview of the City’s financial activities for the fiscal year ended June 30, 2025. 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 31 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.

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.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
5 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 (non-major 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.

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 governmentwide 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, 2025, compared to June 30, 2024. 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 $109.5 million as of June 30, 2025, representing an overall increase of $6.6 million, or 6.4%, from June 30, 2024.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
6 A summary of the government-wide Statement of Net Position is as follows:

Government-wide Financial Statements
Statement of Net Position (in thousands)
June 30,
Governmental Activities
2025 2024 Dollar Change
Percentage
Change
Current and other assets 79,618 $ 78,041 $ 1,577 $ 2.0% Capital assets 51,957 48,827 3,130 6.4%
Total assets 131,575 126,868 4,707 8.4%
Deferred Outflows 3,868 4,951 (1,083) -21.9%
Long-term debt/pension liability 11,108 11,254 (146) -1.3% Other liabilities 13,845 16,913 (3,068) -18.1%
Total liabilities 24,953 28,167 (3,214) -41.3%
Deferred Inflows 981 699 282 40.3%
Net position:

Net Investment in capital assets 51,548 48,519 3,029 6.2% Restricted 22,179 20,083 2,096 10.4%
Unrestricted 35,782 34,351 1,431 4.2%
Total net position 109,509 $ 102,953 $ 6,556 $ 6.4%
Analysis of Net Position
Below are the three components of net position and their respective balances as of June 30, 2025:

The largest portion of the City’s net position reflects its investment in capital assets of $51.5 million, an increase of $3 million or 6.2% from the prior fiscal year. This component consists of capital assets such as land, construction in progress, building and structures, improvements, vehicles, machinery and equipment and infrastructure, net of accumulated depreciation. The amount is further reduced by any debt attributed to the acquisition, construction, or improvement of the assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s net investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be liquidated for these liabilities. The $3 million increase is attributed to capital asset additions, transferred from Construction in Progress to Infrastructure for completed projects of $3.9 million plus additional Construction in Progress of $1.9 million less current year depreciation of $2.7 million. The major completed projects included the Public Works Citywide Sign replacement and street improvements.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
7 The restricted net position is $22 million, an increase of $1.9 million, or 9.7% 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 $35.8 million, an increase of $1.4 million, or 4.2% 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, 2025, compared to the prior year:

Government-wide Financial Statements
Statement of Activities (in thousands)
For the Years Ended June 30,
Government Activities Percentage
2025 2024 Dollar Change Change
Revenues
Program revenues:

Charges for services 2,964 $ 3,206 $ (242) $ -7.5%
Operating contributions & grants 4,664 4,348 316 7.3%
Capital contributions & grants 4,616 4,535 81 1.8%
General revenues:

Property taxes 1,968 1,886 82 4.3%
Sales taxes 7,253 7,165 88 1.2%
Motor vehicle in lieu 4,848 4,616 232 5.0%
Other taxes 3,861 3,864 (3) -0.1%
Other general revenues 2,573 2,326 247 10.6%
Total revenue 32,747 31,946 801 2.5%
Program expenses
General government 6,194 5,361 833 15.5%
Public safety 7,657 7,297 360 4.9%
Code enforcement and animal control 1,982 1,680 302 18.0% Housing 2,127 1,984 143 7.2%
Recreation and community services 2,020 2,115 (95) -4.5% Public works 6,201 6,280 (79) -1.3%
Interest on long-term debt 10 12 (2) -16.7%
Total expenses 26,191 24,729 1,462 5.9%
Change in net position 6,556 7,217 (661) -9.2%
Beginning net position 102,953 95,736 7,217 7.5%
Ending net position 109,509 $ 102,953 $ 6,556 $ 6.4%
Analysis of Changes in Net Position
The following are major factors contributing to the net position changes between fiscal years 2024-25 and 2023- 24, as shown in the table above.

Revenues for governmental activities
Total revenues for governmental activities were $32.7 million, an increase of $800 thousand, or 2.5%, from fiscal year 2023-24. The increase was primarily from operating contributions and grants, which consists of Use of money and property and Miscellaneous. The increase was primarily attributed to an increase of $246 thousand or 10.6% in Other general revenues which was the result of increased investment returns as compared to the prior year.

City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
8 Program Revenues
Program Revenues are $12.2 million, an increase of $155 thousand, or 1.28%, from fiscal year 2023-24.

The increase in general revenues was primarily attributed to:
 Charges for services decreased by $242 thousand or 7.5% due to an overall decrease in business license and building permit fees.
 Operating contributions and grants increased by $316 thousand or 7.3% due to the recognition of ARPA revenues.

General Revenues
General Revenues are $20.5 million, an increase of $646 thousand, or 3.25%, from fiscal year 2023-24.

The increase in general revenues was primarily attributed to:
 Property taxes in lieu of motor vehicle fees increase by $232 thousand, or 5%.  Other general revenues increased by $247 thousand, or 10.6%.

Expenses for governmental activities
Total expenses for governmental activities were $26.2 million for the current fiscal year, an increase of $1.5 million, or 5.9%, compared to the prior fiscal year. Significant factors attributing to the increase included general government, public safety, code enforcement and housing program expense increases of $833 thousand, $360 thousand, $302 thousand, $143 thousand, respectively. In general costs across all governmental activities due to increased salary costs as a result of the 4% increase negotiated with the union. Also, Public Works completed several capital projects and the City was also using ARPA funding for general government services throughout the City. Public safety increased due to increased costs from LASD.

The following chart displays expenses and the associated program revenues by function for fiscal year ended June 30, 2025, governmental activities (in thousands):

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Interest on long-term debt
Public works
Recreation & community services
Housing
Code enforcement and animal control
Public safety
General government
Expense and Program Revenues - Govermental Activities
(in thousands)
Program Expenses Program Revenues
City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
9 Revenue by Source – Governmental Activities
Expense by Function – Governmental Activities

FINANCIAL ANALYSIS OF FUND STATEMENTS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City's governmental funds is to provide information on 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, 2025, the City's governmental funds reported combined fund balances of $63.2 million, an increase of $4.16 million, or 7% in comparison with the prior year. The components of the total fund balance are as follows:

Other general
revenues
1%
Charges for services
9%
Operating
contributions
& grants
14%
Capital
contributions
& grants
Property 14%
taxes
6%
Sales taxes
22%
Motor vehicle
in lieu
15%
Other taxes
19%
Code enforcement and
animal control
7%
Public safety,
29%
Public works,
24%
General
government,
24%
Recreation &
community
services, 8%
Housing,
8%
City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
10  Non-spendable fund balance - $171 thousand, 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 - $26.4 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 - $36.5 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 $32.4 million, an increase of $686 thousand, or 2.2%, from the prior fiscal year. Expenditures totaled $28.4 million an increase of $3.9 million, or 15.95%, from the prior fiscal year.

Overall, governmental fund balance increased $4.16 million, or 7.05%, compared to an increase of $7.3 million, or 14.1% in fiscal year 2024-25 compared to 2023-24.

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 $38.5 million, compared to $35.4 million as stated in fiscal year 2023-24, an increase of $3.2 million, or 9%. As a measure of the General Fund's liquidity, it is useful to compare both total fund balance and spendable fund balance to total fund expenditures. The nonspendable portion of the General Fund balance was $171 thousand, restricted portion was $1.7 million, and the spendable portion was $36.7 million, which was 0.9%, 9% and 195%, respectively, of the total General Fund expenditures of $18.9 million, as compared to 14.8% and 186%, respectively, of the prior year General Fund expenditures of $17.5 million.

Total General Fund revenue increased $455 thousand, or 2.1%, from $21.6 to $22.1 million. Significant factors attributed to the net increase included taxes, licenses and permits, intergovernmental, use of money and property, fines and forfeitures, and miscellaneous revenues, with increases of $168, $18, $160, $337, $11, and $13 thousand, respectively, compared to the prior year. These increases were offset by decreases in charges for services of $252 thousand, compared to the prior year.  Property taxes increased by $82 thousand, Motor vehicle in-lieu tax increased by $232 thousand mainly due to the annual 2% increase in property valuations, and sales and use tax increased marginally by $88 thousand or 1.2% due to a slower than expected economic recovery.  Encroachment permit fees increased $24 thousand, planning fees slightly decreased by $7 thousand, building plan check fees increased $84 thousand, and building permit fees decreased $245 thousand due to the slowing economy resulting in decreased building activities. -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
General Fund Revenues
FY25 FY24
City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
11 Total General Fund expenditures increased $1.4 million, or 7.72%, from $17.5 to $18.9 million. Significant factors attributed to the net increase included general government with a $616 thousand increase, public works with a $204 thousand increase, an increase of $189 thousand in capital outlay, and an increase of $146 thousand in code enforcement and animal control as compared to the prior year.  The $616 thousand increase in general government is mainly due to increased salary and benefit costs.  The increase of $204 thousand in public works is mainly due to increased salary and benefit costs, and increased costs of contracted landscaping and tree services.  The $189 thousand increase in capital outlay is primarily attributed to the ongoing construction projects and completion of major street projects in the previous year.  The $146 thousand increase in code enforcement and animal control is largely attributed to increased animal sheltering costs which are contracted with the SPCA.

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 $3.9 million which were spent on public safety, parking lot rehabilitation at city parks, tree replacement, IT infrastructure updates, facility improvements and repairs, and traffic synchronization projects.

Nonmajor Governmental Funds
Non-major governmental funds had a net change in fund balance of $1.1 million, or 5.94%, increase from prior year. Compared to prior year non-major governmental fund operations, revenue decreased by $1.9 million and expenditures increased $248 thousand. The revenue decrease is mainly due annual decreases from grants ended such as the Priority Legislative Budget Projects (PLBP) revenues. The expenditures remained fairly flat as compared to the prior year.

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 $21 million and $35.4 million of budgetary fund balance was available, resulting in $56.4 million available for appropriations during the year. The budget was monitored throughout the year, and adjustments to the revenue budget were not needed.

-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
General Fund Expenditures
FY25 FY24
City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
12 CAPITAL ASSETS
Capital assets, net of depreciation, increased $3.2 million, from $48.8 million on July 1, 2024, to $52 million on June 30, 2025. The increase is attributed to a depreciation expense of $2.7 million offset by $5.8 million of additions. The additions were in construction in progress (ongoing construction on City Hall and Public Works roof repair, Street Improvement project 21-22, Street Improvement project 22-23, and City-Wide Sign replacement). For more information, see Capital Assets Note 7 in the Notes to Financial Statements.

Government-wide Financial Statements
Capital Assets (in thousands)
As of June 30,
Government Activities Percentage
2025 2024 Dollar Change Change
Capital assets, not being depreciated
Land 5,216 $ 5,216 $ - $ 0.0%
Construction in progress 3,453 1,544 1,909 123.6%
Total assets not being depreciated 8,669 6,760 1,909 28.2% Capital assets being depreciated:

Building and structures 18,191 18,191 - 0.0%
Improvements other than buildings 1,025 1,025 - 0.0%
Vehicles, machinery and equipment 3,530 3,633 (104) -2.9% Infrastructure 56,323 52,414 3,909 7.5%
Total capital assets being depreciated 79,069 75,264 3,806 5.1% Less accumulated depreciation (35,781) (33,197) (2,584) 7.8% Net depreciable assets 43,289 42,067 1,221 2.9%
Capital Assets, Net 51,957 $ 48,827 $ 3,130 6.4%

LONG-TERM LIABILITIES
Total long-term liabilities city-wide were $18.3 million as of June 30, 2025, a decrease of approximately $425 thousand compared to the prior fiscal year. Although the City experienced less favorable CalPERS investment returns and increases in OPEB actuarial liability estimates, these changes were more than offset by scheduled debt service payments and other reductions. Additional information is presented in Notes 8 through 12.

Government-wide Financial Statements
Long-Term Liabilities (in thousands)
As of June 30,
Government Activities Percentage
2025 2024 Dollar Change Change
Long-term liabilities
Long-term debt 261 $ 309 $ (47) $ -15.3%
Compensated absences 703 797 (94) -11.8%
Net pension liability 10,847 10,946 (99) -0.9%
Total OPEB liability 6,525 6,709 (185) -2.8%
Total long-term liabilities 18,335 $ 18,760 $ (425) $ -2.3%

City of Lawndale
Management’s Discussion and Analysis
June 30, 2025
13 Economic Factors and Outlook
The City adopted Fiscal Year 2025-2026 budget on June 12, 2025. The General Fund Revenue budget was $21,101,014 for 2025-2026 with expenditures of $20,436,605 for a surplus of $664,409.

In 2025-2026 the top 5 adopted General Fund revenue sources, which make up 76% of the City’s General Fund revenues, include 1. Motor Vehicle In-Lieu fees $5.1 million (24%) 2. Sales and Use Tax – $3.9 million (19%),

3. Measure L Transaction Tax – $2.9M (14%), 4. Utility Users Tax – $2.2 million (10%), and Property Tax $2.0 million (10%).

The Fiscal Year 2025-2026 the General Fund budget expenditures were $20,436,605, with Public Safety making up $7.8 million or 37%, Public Works at $3.2 million or 15%, Municipal Services at $1.9 million or 10%, Community Development at $1.1 million or 5%, Community Services at $1.5 million or 7%, and all others (including City Council, City Clerk, City Manager, Finance, IT, General Admin, Cable TV, General Operations at $5.8 million or 29%.

As we look forward to future years uncertainty in the economy looms, however considering the budget for Fiscal 2025-2026 the City has a healthy budget and is prepared to face these events if they do occur as we are very fortunate to have a stable diverse economic base which somewhat shields the city’s economy from downturns in any specific category.

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

City of Lawndale
Statement of Net Position
June 30, 2025
See accompanying notes to financial statements.
14 Governmental
Activities
Assets
Cash and investments 61,343,478 $
Receivables:

Accounts 2,554,931 Grants 348,898 Accrued interest 294,393 Notes and loans 266,431
Agreements with Successor Agency 14,151,993 Prepaid costs 23,171 Land held for development 634,983 Capital assets not being depreciated 8,668,810 Capital assets, net of depreciation 43,288,521 Total Assets 131,575,609 Deferred Outflows of Resources Pension related 3,128,627 OPEB related 738,991 Total Deferred Outflows of Resources 3,867,618 Liabilities
Accounts payable 3,116,984
Accrued liabilities 224,264 Accrued interest 3,622 Deposits payable 2,104,260 Unearned revenue 1,168,480 Noncurrent liabilities:

Due within one year
Long-term debt 48,865 Compensated absences 338,267 Total OPEB liability 255,053 Due in more than one year
Long-term debt 212,386
Compensated absences 364,552
Net pension liability 10,846,552 Total OPEB liability 6,269,801 Total Liabilities 24,953,086 Deferred Inflows of Resources
Pension related 249,812 OPEB related 731,347
Total Deferred Inflows of Resources 981,159
Net Position
Net investment in capital assets 51,548,100 Restricted for:

Community development projects 144,936 Public safety 436,297 Parks and recreation 3,112,958 Public works 11,894,293 Capital projects 3,164,233 Air quality 322,940 Code enforcement and animal control 219,313 Housing 2,883,875 Unrestricted 35,782,037 Total Net Position 109,508,982 $ City of Lawndale
Statement of Activities
For the Fiscal Year Ended June 30, 2025
See accompanying notes to financial statements.
15 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 6,193,711 $ 1,854,767 $ 3,870,354 $ - $ (468,590) $ Public safety 7,657,171 - 194,663 - (7,462,508) Code enforcement and animal control 1,981,573 - - - (1,981,573) Housing 2,127,003 1,106,706 - - (1,020,297) Recreation and community services 2,019,586 - 141 - (2,019,445) Public works 6,201,314 3,019 599,145 4,616,035 (983,115) Interest on long-term debt 9,786 - - - (9,786) Total Governmental Activities 26,190,144 $ 2,964,492 $ 4,664,303 $ 4,616,035 $ (13,945,314) General Revenues Taxes:

Property taxes, levied for general purpose 1,968,279
Property taxes in lieu of vehicle license fees 4,848,016 Transient occupancy taxes 723,009
Sales taxes 7,252,935
Franchise taxes 926,556
Utility users tax 2,211,385
Use of money and property 2,228,177
Miscellaneous 343,396
Total General Revenues 20,501,753 Change in Net Position 6,556,439 Net Position, Beginning of Year 102,952,543 Net Position, End of Year $ 109,508,982 City of Lawndale
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying notes to financial statements.
16 Restricted Nonmajor Total
Urban Governmental Governmental
General Development ARPA Fund Funds Funds
Assets
Cash and investments 37,729,444 $ 3,017,542 $ 2,251,201 $ 18,345,291 $ 61,343,478 $ Receivables:

Accounts 2,238,269 - - 316,662 2,554,931 Grants - - - 348,898 348,898 Accrued interest 294,393 - - - 294,393 Notes and loans - - - 266,431 266,431 Agreements with Successor Agency 6,857,911 7,294,082 - - 14,151,993 Prepaid costs 23,171 - - - 23,171 Due from other funds 530,551 - - - 530,551 Land held for development 147,900 - - 487,083 634,983 Total Assets 47,821,639 $ 10,311,624 $ 2,251,201 $ 19,764,365 $ 80,148,829 $ Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities
Accounts payable 1,838,080 $ - $ 936,030 $ 342,874 $ 3,116,984 $ Accrued liabilities 177,446 - - 46,818 224,264 Deposits payable 2,104,260 - - - 2,104,260 Due to other funds - - - 530,551 530,551 Unearned revenue - - 1,168,480 - 1,168,480 Total Liabilities 4,119,786 - 2,104,510 920,243 7,144,539 Deferred Inflows of Resources Unavailable revenues 5,161,798 4,653,933 - - 9,815,731 Total Deferred Inflows of Resources 5,161,798 4,653,933 - - 9,815,731 Fund Balances Nonspendable:

Prepaid costs 23,171 - - - 23,171 Land held for development 147,900 - - - 147,900 Restricted for:

Community development projects - - - 144,936 144,936 Public safety - - - 436,297 436,297 Recreation and community services - - - 3,112,958 3,112,958 Public works - - - 11,894,293 11,894,293 Capital projects - 3,017,542 146,691 - 3,164,233 Air quality - - - 322,940 322,940 Municipal services - - - 219,313 219,313 Housing - - - 2,883,875 2,883,875 Agreements with Successor Agency 1,744,697 2,640,149 - - 4,384,846 Unassigned 36,624,287 - - (170,490) 36,453,797 Total Fund Balances 38,540,055 5,657,691 146,691 18,844,122 63,188,559 Liabilities, Deferred Inflows of Resources, and Fund Balances 47,821,639 $ 10,311,624 $ 2,251,201 $ 19,764,365 $ 80,148,829 $ Special Revenue Fund
City of Lawndale
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2025
See accompanying notes to financial statements.
17 Total Fund Balances - Governmental Funds 63,188,559 $ 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. 51,957,331 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 (261,251) $
Net pension liability (10,846,552) Total OPEB liability (6,524,854) Compensated absences (702,819) (18,335,476) Deferred outflows and inflows of resources related to pensions have not been reported in the governmental funds:

Pension related deferred outflows of resources 3,128,627 Pension related deferred inflows of resources (249,812) 2,878,815 Accrued interest payable for the current portion of interest due on notes that has not been reported in the governmental funds. (3,622) Deferred outflows and inflows of resources related to OPEB have not been reported in the governmental funds:

OPEB related deferred outflows of resources 738,991 OPEB related deferred inflows of resources (731,347) 7,644 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. 9,815,731 Net Position of Governmental Activities 109,508,982 $ City of Lawndale
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2025
See accompanying notes to financial statements.
18 Restricted Nonmajor Total
Urban Governmental Governmental
General Development ARPA Fund Funds Funds
Revenues
Taxes 12,886,481 $ - $ - $ - $ 12,886,481 $
Licenses and permits 727,133 - - - 727,133
Intergovernmental 4,848,016 - 3,870,354 5,566,800 14,285,170 Charges for services 1,230,241 - - 36,888 1,267,129 Use of money and property 1,410,198 100,867 - 557,965 2,069,030 Fines and forfeitures 963,073 - - - 963,073 Miscellaneous 25,056 - - 206,401 231,457 Total Revenues 22,090,198 100,867 3,870,354 6,368,054 32,429,473 Expenditures Current:

General government 5,244,305 - 979,769 213,892 6,437,966 Public safety 7,267,724 - 242,600 123,750 7,634,074 Code enforcement and animal control 1,495,586 - 249,412 74,470 1,819,468 Housing 1,135,460 - - 309,947 1,445,407 Recreation and community services 1,074,694 - - 799,680 1,874,374 Public works 2,344,467 - - 2,138,963 4,483,430 Capital outlay 232,492 - 2,395,573 1,999,206 4,627,271 Debt service:

Principal retirement 47,281 - - - 47,281
Interest and fiscal charges 10,470 - - - 10,470 Total Expenditures 18,852,479 - 3,867,354 5,659,908 28,379,741 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,237,719 100,867 3,000 708,146 4,049,732 Other Financing Sources (Uses) Transfers in 3,000 - - 348,917 351,917 Transfers out (169,657) (179,260) (3,000) - (351,917) Proceeds from sale of capital assets 110,812 - - - 110,812 Total Other Financing Sources (Uses) (55,845) (179,260) (3,000) 348,917 110,812 Net Change in Fund Balances 3,181,874 (78,393) - 1,057,063 4,160,544 Fund Balances (deficit) Beginning of year 35,358,181 5,736,084 146,691 17,787,059 59,028,015 End of Year $ 5,657,691 38,540,055 $ 146,691 $ 18,844,122 $ 63,188,559 $ 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, 2025
See accompanying notes to financial statements.
19 Net Change in Fund Balances - Total Governmental Funds 4,160,544 $ 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 5,835,385 $
Depreciation (2,705,199) 3,130,186 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 (737,735) OPEB related net adjustments (344,619) (1,082,354) 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 47,281 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 93,800 Change in accrued interest 684 94,484 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. 206,298 Change in Net Position of Governmental Activities 6,556,439 $ City of Lawndale
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See accompanying notes to financial statements.
20 Private-Purpose
Custodial Fund Trust Funds
Lawndale
PRSSC Successor
Fund Agency
Assets
Cash and investments 30,969 $ 2,740,127 $
Restricted assets:

Cash and investments held with fiscal agents - 2,044,051 Total Assets 30,969 4,784,178 Liabilities
Accrued liabilities - 3,066
Accrued interest - 383,115 Long-term liabilities:

Due in one year
Tax allocation bonds - 405,000
Direct borrowings - 1,689,163 Due in more than one year Tax allocation bonds - 15,879,177
Direct borrowings - 13,163,486
Total Liabilities - 31,523,007 Net Position (Deficit)
Restricted 30,969 (26,738,829) Total Net Position 30,969 $ (26,738,829) $ City of Lawndale
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2025
See accompanying notes to financial statements.
21 Private-Purpose
Custodial Fund Trust Funds
Lawndale
PRSSC Successor
Fund Agency
Additions
Taxes - $ 3,373,559 $
Interest income 1,119 177,889 Total Additions 1,119 3,551,448 Deductions Administrative expenses - 81,481
Contractual services - 31,497
Interest and fiscal charges - 1,090,363
Transfer to other governments 5,310 - Total Deductions 5,310 1,203,341 Changes in Net Position (4,191) 2,348,107 Net Position (Deficit)
Beginning of Year 35,160 (29,086,936) End of Year $ (26,738,829) 30,969 $ City of Lawndale
Notes to Financial Statements
For the Fiscal Year Ended June 30, 2025
22 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, 2025
23 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, 2025
24 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.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
25 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) 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 non-major 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.

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

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
26 Note 1: Summary of Significant Accounting Policies (Continued) b. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) 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. Noncurrent 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 longterm 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.

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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
27 Note 1: Summary of Significant Accounting Policies (Continued) 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.

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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
28 Note 1: Summary of Significant Accounting Policies (Continued) 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.

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 asset-backed 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 non-spendable 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, 2025
29 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 Government-Wide 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 five years. 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).
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 governmentwide Statement of Net Position.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
30 Note 1: Summary of Significant Accounting Policies (Continued) i. Deferred Outflows and lnflows of Resources (Continued) 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 government-wide 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 governmentwide 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.
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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
31 Note 1: Summary of Significant Accounting Policies (Continued) 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.

Generally accepted accounting principles 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, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
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.

Valuation Date (VD) June 30, 2024
Measurement Date (MD) June 30, 2025
Measurement Period (MP) July 1, 2024 to June 30, 2025
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
32 Note 1: Summary of Significant Accounting Policies (Continued) 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, 2024
Measurement Date: June 30, 2025
Measurement Period: July 1, 2024 to June 30, 2025
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 co0lorflow 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
33 Note 1: Summary of Significant Accounting Policies (Continued) n. Net Position and Fund Balance (Continued)
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.

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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
34 Note 1: Summary of Significant Accounting Policies (Continued) 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.

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.
q. New Accounting Pronouncements
The City has implemented GASB Statement No. 101 – Compensated Absences and GASB Statement No. 102 – Certain Risks Disclosures.

GASB Statement No. 101 improves the recognition and measurement guidance for compensated absences. As part of the implementation, the City recalculated its compensated absences liability under the new criteria. This recalculation did not result in a material change to the compensated absences balances. Accordingly, there was no effect on the current year’s financial statements related to this pronouncement.

GASB Statement No. 102 enhances the consistency and clarity of disclosures related to concentration and constraint risks. Management evaluated the City’s exposure to such risks and determined that no concentration risks were identified, and while restrictive covenants exist on bonds issued by the Successor Agency, these covenants do not impose limitations significant enough to meet the disclosure criteria under the Statement. As such, implementation of GASB 102 had no effect on the City’s current year financial statements.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
35 Note 1: Summary of Significant Accounting Policies (Continued) r. Upcoming Accounting Pronouncements
Below is a summary of the most significant recent pronouncements:

GASB Statement No. 103 – Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision-making and assessing a government’s accountability. The requirements of this Statement are effective for fiscal year ending June 30, 2026.

GASB Statement No. 104 – Disclosure of Certain Capital Assets. The objective of this Statement is to establish disclosure requirements related to a government’s capital assets, including information on major classes of assets, restrictions, and changes in those assets.

The Statement is intended to enhance the usefulness and consistency of capital asset information presented in the notes to the financial statements. The requirements of this Statement are effective for fiscal year ending June 30, 2026.

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, 2025:

Deficit Fund
Balance
Governmental Funds:

Non-major Governmental Funds:

Justice Assistance Grant (9,873) $
Prop 68 2018 Parks Bond Act (1,974) Measure A (157,000) TDA Article 3 (Metro) (1,643) Deficits in the in the funds listed above will be resolved with future grant revenue.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
36 III. DETAILED NOTES ON ALL FUNDS
Note 3: Cash and Investments
Summary of Cash and Investments
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 61,343,478 $
Fiduciary Funds:

Cash and investments 2,771,096 Cash and investments held with fiscal agents 2,044,051 Total 66,158,625 $
Cash and investments as of June 30, 2025, consist of the following:

Cash on hand 1,151 $
Deposits with financial institutions 26,283,283 Restricted cash held with fiscal agents 2,044,051 Investments 37,830,140
Total 66,158,625 $
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, 2025, 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, 2025
37 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, 2025 consist of the following:

Investment Type Fair Value
Local Agency Investment Fund (LAIF) 26,003,395 $
Certificates of deposit 7,819,037 Federal agency issues 4,007,708 Total Investments 37,830,140 $
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
38 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, 2025
39 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 $4,007,708 as of June 30, 2025. The remaining investments are not subject to the fair value hierarchy.

Fair Value Measurement
Investment Type Fair Value Level 1 Level 2 Level 3 Uncategorized Local Agency Investment Fund (LAIF) 26,003,395 $ - $ - $ - $ 26,003,395 $ Certificates of deposit 7,819,037 - - - 7,819,037 Federal agency issues 4,007,708 - 4,007,708 - - Total Investments 37,830,140 $ - $ 4,007,708 $ - $ 33,822,432 $ 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 Local Agency Investment Fund (LAIF) 26,003,395 $ 26,003,395 $ - $ - $ - $ Certificates of deposit 7,819,037 1,896,109 986,062 2,941,563 1,995,303 Federal agency issues 4,007,708 - - 1,004,794 3,002,914 Total Investments 37,830,140 $ 27,899,504 $ 986,062 $ 3,946,357 $ 4,998,217 $ 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
40 Note 3: Cash and Investments (Continued)
Minimum
Credit
Investment Type Rating Fair Value
Local Agency Investment Fund (LAIF) Not Rated 26,003,395 $ Certificates of deposit Not Rated 7,819,037 Federal agency issues Not Rated 4,007,708 Total Investments 37,830,140 $
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, 2025. As of June 30, 2025, 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, 2025, 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, 2025, the outstanding receivable balance for the housing rehabilitation loan program was $266,431.

The balance of the forgivable loans receivable was $27,000 at June 30, 2025 and have been fully allowed for.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
41 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, 2025, agreements with the Successor Agency receivable were reported in the accompanying financial statements as follows:

Accrued Balance at
Principal Interest June 30, 2025
General Fund
2000 Cooperation Agreement 875,570 $ 2,656,351 $ 3,531,921 $ 2001 Cooperation Agreement 869,127 2,456,863 3,325,990 Subtotal General Fund 1,744,697 5,113,214 6,857,911 Restricted Urban Development
2000 Financing Agreement 2,640,149 4,653,933 7,294,082
Total 4,384,846 $ 9,767,147 $ 14,151,993 $
Note 6: lnterfund Receivables, Payables and Transfers
a. Due To/From Other Funds:

As of June 30, 2025, the City had the following due to/from other funds:

Due from
Other Funds
Due to Other Funds General Fund
Non-major Governmental Funds 530,551 $
Short-term loans from the General Fund to the Non-major Governmental Funds were made to eliminate short-term cash deficits.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
42 Note 6: lnterfund Receivables, Payables and Transfers (Continued) b. Transfers ln/Out:

Transfers in and out for the year ended June 30, 2025, were as follows:

Transfers Out
Restricted
General Urban ARPA
Transfers In Fund Development Fund Total
General Fund - $ - $ 3,000 $ 3,000 $
Non-Major Governmental Funds 169,657 179,260 - 348,917 $ 179,260 169,657 $ 3,000 $ 351,917 $ In fiscal year 2025, the General Fund and the Restricted Urban Development transferred $169,657 and $179,260, respectively, to the Lawndale Housing Authority to provide the 20% housing set aside funds required by the Successor Agency loans.

Note 7: Capital Assets
A summary of changes in capital assets activity for the year ended June 30, 2025, is as follows:

Construction
Balance at Placed Balance at
June 30, 2024 Additions in Service Disposals June 30, 2025 Capital assets not depreciated:

Land 5,215,937 $ - $ - $ - $ 5,215,937 $
Construction in progress 1,544,136 5,817,968 (3,909,231) - 3,452,873 Total capital assets not being depreciated 6,760,073 5,817,968 (3,909,231) - 8,668,810 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 3,633,407 17,417 - (121,138) 3,529,686 Infrastructure 52,414,174 3,909,231 - - 56,323,405 Total capital assets being depreciated 75,263,872 3,926,648 - (121,138) 79,069,382 Accumulated depreciation:

Building and structures (9,790,028) (569,293) - - (10,359,321) Improvements other than buildings (682,153) (61,193) - - (743,346) Vehicles, machinery and equipment (2,414,503) (243,276) - 121,138 (2,536,641) Infrastructure (20,310,116) (1,831,437) - - (22,141,553) Total accumulated depreciation (33,196,800) (2,705,199) - 121,138 (35,780,861) Total capital assets being depreciated, net 42,067,072 1,221,449 - - 43,288,521 Total capital assets, net 48,827,145 $ 7,039,417 $ (3,909,231) $ - $ 51,957,331 $ 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, 2025, is as follows:

General government 144,345 $
Public safety 23,097 Housing 594,255 Recreation and community services 3,750 Public works 1,939,752 Total 2,705,199 $ City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
43 Note 8: Long-Term Debt
The following is a summary of changes in long-term debt for the year ended June 30, 2025:

Balance at Balance at Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Direct borrowings:

Facility and site lease note 308,532 $ - $ 47,281 $ 261,251 $ 48,865 $ Total 308,532 $ - $ 47,281 $ 261,251 $ 48,865 $
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, 2025, are as follows:

Year Ended Facility and Site Lease Note
June 30, Principal Interest Total
2026 48,865 $ 7,933 $ 56,798 $
2027 50,502 6,269 56,771 2028 52,194 4,549 56,743
2029 53,942 2,771 56,713
2030 55,748 934 56,682
Total 261,251 $ 22,456 $ 283,707 $

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
44 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 reduction in compensated absences shown in the schedule below represents the net change for the period. The following is a summary of changes in compensated absences liabilities for the year ended June 30, 2025:

Balance at Balance at Due in
June 30, 2024 Additions Deletions June 30, 2025 One Year Compensated Absences 796,619 $ - $ (93,800) $ 702,819 $ 338,267 $ 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 self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.

Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
45 Note 10: Liability, Workers' Compensation, and Purchased Insurance (Continued) b. Primary Self-Insurance Programs of CJPIA (Continued) The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/.

Primary Workers' Compensation Program
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.

For 2023-24 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
c. Purchased 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 claimsmade 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 $31,934,250. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City of 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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
46 Note 10: Liability, Workers' Compensation, and Purchased Insurance (Continued) d. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24.

Note 11: Defined Benefit Pension Plans
Summary of Pension Plans
Net Pension
Liability
Deferred
Outflows
Deferred
Inflows
Pension
(Income)/
Expense
CalPERS Plan 10,741,545 $ 3,128,627 $ (256,977) $ 2,052,207 $ PARS Plan 105,007 - (7,165) 10,808 Totals 10,846,552 $ 3,128,627 $ (249,812) $ 2,063,015 $ 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.

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.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
47 Note 11: Defined Benefit Pension Plans (Continued)
a. General Information about the Pension Plan (Continued) 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 as of June 30, 2025 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 6.920% 7.750%
Required employer contribution rates 12.520% 7.870%
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, 2025 were $1,286,550.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
48 Note 11: Defined Benefit Pension Plans (Continued)
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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
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 Contract COLA up to 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter (1) The mortality table used w as developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS w ebsite.

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 shortterm 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, 2025
49 Note 11: Defined Benefit Pension Plans (Continued)
b. Net Pension Liability (Continued)
The expected real rates of return by asset class are as follows:

Asset Class1 Assumed Asset Allocation
Real
Return1,2
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 Figures are based on the 2021-22 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

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
There were no subsequent events that would materially affect the results presented in this disclosure.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
50 Note 11: Defined Benefit Pension Plans (Continued)
b. Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting.

Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
c. Proportionate Share of Net Pension Liability
The following table shows the 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: 6/30/2023 (VD) 39,770,030 $ 28,966,808 $ 10,803,222 $ Balance at: 6/30/2024 (MD) 41,950,898 31,209,353 10,741,545 Net Change during 2023-24 2,180,868 $ 2,242,545 $ (61,677) $ 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, 2023 and 2024 measurement dates was as follows:

Proportionate Share - June 30, 2023 0.21605%
Proportionate Share - June 30, 2024 0.22209%
Change - Increase (Decrease) 0.00604%

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
51 Note 11: Defined Benefit Pension Plans (Continued)
c. Proportionate Share of Net Pension Liability (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentagepoint lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Discount Rate - 1% Current Discount Discount rate + 1%
(5.90%) (6.90%) (7.90%)
Plan's Net Pension
Liability 16,402,415 $ 10,741,545 $ 6,081,815 $
Amortization of Deferred Outflows and Deferred Inflows of Resources 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

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
52 Note 11: Defined Benefit Pension Plans (Continued)
d. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s net pension liability was $10,803,222. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $2,052,207.

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

Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and
actual experience 892,468 $ - $
Changes of assumptions 276,080 - Net difference between projected and actual earnings on pension plan
investments 618,377 - Changes in employer's proportion 55,152 (31,491) Differences between the employer’s contributions and the employer’s
proportionate share of contributions - (225,486) Pension contributions subsequent to measurement date 1,286,550 - Total 3,128,627 $ (256,977) $ The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $1,286,550 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:

Fiscal Year
Ended June 30:

Deferred
Outflows/(Inflows) of
Resources
2026 496,231 $
2027 1,312,175 2028 (11,395) 2029 (211,911) 2030 - Thereafter - e. Payable to the Pension Plan
At June 30, 2025, 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, 2025
53 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) taxqualified 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, 2025, 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, 2025
54 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 $24,400 during fiscal year 2024 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, 2025 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2024 total pension liability. The June 30, 2024 total pension liability was based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 6.00%
Inflation Not applicable, no active participants.

Salary Increases Not applicable, no active participants.

Investment Rate of Return 6.00%
Cost of Living Adjustments 2.00%
Mortality RP-2000 Male rates projected to 2030 using Scale BB (as prescribed by PARS).

RP-2000 Female rates projected to 2030 using Scale BB (as prescribed by PARS).

Retirement Not applicable, no active participants.

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, 2025
55 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, 2025 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 2.75% 0.83% 0.80%
US Corporate Bonds Bloomberg US Corp Bond TR USD 44.16% 2.91% 2.65% US High Yield Bonds ICE BofA US High Yield TR USD 3.48% 4.03% 3.48% US Large Cap Equity S&P 500 TR USD 28.28% 5.39% 3.78%
US Small Cap Equity Russell 2000 TR USD 1.49% 6.80% 4.22% Foreign Developed Equity MSCI EAFE NR USD 11.16% 6.61% 4.79% Emerging Markets Equity MSCI EM NR USD 3.72% 8.78% 5.73% US REITs FTSE Nareit All Equity REITs TR USD 2.48% 6.71% 4.46% Infrastructure - Public S&P Global Infrastructure TR USD 2.48% 5.68% 4.18% Assumed Inflation - Mean 2.28% 2.28%
Assumed Inflation - Standard Deviation 1.47% 1.47%
Portfolio Real Mean Return 4.45% 3.84%
Portfolio Nominal Mean Return 6.73% 6.21%
Portfolio Standard Deviation 10.46%
Long-Term Expected Rate of Return 6.00%
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, 2025
56 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, 2024 (MD) 887,129 $ 744,633 $ 142,496 $ Changes for the year:

Interest on the total pension liability 51,279 - 51,279 Benefit payments (65,942) (65,942) - Employer contributions - 24,400 (24,400) Net investment income - 68,226 (68,226) Administrative expenses - (3,858) 3,858 Balance as of June 30, 2025 (MD) 872,466 $ 767,459 $ 105,007 $ Increase (Decrease)
City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
57 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 (5.00%) or 1% point higher (7.00%) than the current rate.

Discount Rate - 1% Current Discount Discount rate + 1%
(5.00%) (6.00%) (7.00%)
Net Pension Liability 190,675 $ 105,007 $ 31,564 $
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period, July 1, 2024, the net pension liability was $142,496.

For the measurement period ending June 30, 2025, the City incurred a pension expense of $10,808 for the PARS Plan. A complete breakdown of the pension expense is as follows:

Description Amount
Interest on total pension liability 51,279 $
Administrative expenses 3,858
Expected investment return of net
investment expenses (43,824)
Recognition of deferred inflows/outflows
of resources:

Investment gains or losses (505)
Pension expense $ 10,808
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, 2025
58 Note 11: Defined Benefit Pension Plans (Continued)
d. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
As of June 30, 2025, 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 $ (7,165) - $
Total - $ (7,165) $
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year Ended June
30 Deferred Inflows of
Resources
2026 20,665 $
2027 (11,844) 2028 (11,104)
2029 (4,882) 2030 - Thereafter -
For the fiscal year ended June 30, 2025, the City recognized pension expense of $10,808.

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. Governments that do not provide OPEB through a trust are required to recognize the entire OPEB liability in the financial statements. For governments that provide OPEB through an OPEB plan that is administered through a trust, the government’s OPEB liability is recognized net of the amount of the OPEB plan’s fiduciary net position. The City does not provide OPEB through a trust and therefore reports the total OPEB liability in the financial statements. 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, 2025
59 Note 12: Other Post-Employment Benefits Plan (Continued) Employees Covered
As of the June 30, 2024, actuarial valuation, membership of the plan consisted of the following:

Participating active employees 49
Inactive employees receiving benefits 26
Inactive employees entitled to, but not receiving benefits - Total number of participants 75 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, 2025, the City's cash contributions were $198,828.

Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2025 and was determined by an actuarial valuation dated June 30, 2024, based on the following actuarial methods and assumptions:

Actuarial Assumptions June 30, 2025 Measurement Date
Actuarial Valuation Date June 30, 2024
Contribution Policy No pre-funding
Discount Rate 4.71% in 2025
General Inflation 2.30%
Mortality, Retirement,
Disability, Termination
Based on CalPERS 2021 CalPERS Mortality for
Miscellaneous and School Employees
Salary increases 2.80% per year
Medical Trend 4.90% 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, 2025
60 Note 12: Other Post-Employment Benefits Plan (Continued) Change of Assumptions
The discount rate changed from 4.09% to 4.71%
Discount Rate
The discount rate used to measure the total OPEB liability was 4.71%. 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, 2024
(6/30/24 measurement date) 6,709,416 $
Changes recognized for the measurement period:

Service cost 365,025
Interest on total OPEB liability 283,966
Benefit payments (198,828) Experience (gains)/losses 22,096 Change in assumptions (592,601) Implicit rate credit (64,220) Net change in total OPEB liability (184,562) Balance at June 30, 2025
(6/30/25 measurement date) $ 6,524,854
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, 2025:
1% Decrease
(3.71%)
Current Discount
Rate (4.71%)
1% Increase
(5.71%)
Total OPEB Liability 7,520,089 $ 6,524,854 $ 5,712,005 $ City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
61 Note 12: Other Post-Employment Benefits Plan (Continued) Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2025:
1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
Total OPEB Liability 5,500,259 $ 6,524,854 $ 7,831,728 $ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $607,667. A complete breakdown of OPEB expense is as follows:

OPEB Expense Detail Amount
Description
Service cost 365,025 $
Interest cost 283,966 Recognition of experience (gains)/loss deferrals 104,404 Recognition of assumption change deferrals (145,728) Total OPEB expense 607,667 $ As of fiscal year ended June 30, 2025, 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 738,991 $ - $ Changes of assumptions - (731,347) Total 738,991 $ $ (731,347) City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
62 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:

Fiscal Year
Ended June
30,
Deferred
Outflows/
Inflows of
Resources
2026 (41,324) $
2027 (48,546) 2028 (65,380)
2029 129,497 2030 68,526 Thereafter (35,129) Total 7,644 $ Note 13: Commitments and Contingencies
As of June 30, 2025, 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, 2025
63 Note 14: Successor Agency to the Former Lawndale Redevelopment Agency (Continued) a. Cash and Investments
As of June 30, 2025, cash and investments were reported in accompanying financial statements as follows:

Lawndale
Successor
Agency
Cash and investments 2,740,127 $
Cash and investments held with fiscal agents 2,044,051 Total 4,784,178 $ b. Long-Term Debt
A description of long-term debt outstanding of the Successor Agency as of June 30, 2025, is as follows:

Balance at Balance at Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Tax Allocation Bonds
Tax Allocation Bonds, Series 2009 16,750,000 $ - $ 385,000 $ 16,365,000 $ 405,000 $ Bonds Discount (85,057) - (4,234) (80,823) - Total Tax Allocation Bonds 16,664,943 - 380,766 16,284,177 405,000 Direct Borrowings Tax Allocation Loan Agreement Note 787,155 - 86,499 700,656 89,657 Agreements with City 15,738,862 157,679 1,744,548 14,151,993 1,599,506 Total Direct Borrowings 16,526,017 157,679 1,831,047 14,852,649 1,689,163 Total 33,190,960 $ 157,679 $ 2,211,813 $ 31,136,826 $ 2,094,163 $ 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, 2025, the outstanding principal on the bonds was $16,365,000, and relating unamortized discount was $80,823.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
64 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
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 480,000 815,925 1,295,925
2030 2,315,000 2,973,987 5,288,987
2030-2034 4,185,000 2,826,312 7,011,312
2035-2039 5,465,000 1,507,138 6,972,138
2040-2044 2,630,000 146,575 2,776,575
Total 16,365,000 $ 10,866,488 $ 27,231,488 $
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, 2025, the outstanding principal on the note was $700,656.

City of Lawndale
Notes to Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2025
65 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
2026 89,657 $ 23,938 $ 113,595 $
2027 92,929 20,605 113,534 2028 96,321 17,152 113,473
2029 99,837 13,572 113,409
2030 321,912 17,905 339,817
Total 700,656 $ 93,172 $ 793,828 $
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. As of June 30, 2025, the outstanding balance was $14,151,993.

REQUIRED SUPPLEMENTARY

INFORMATION

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City of Lawndale
Notes to Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
66 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 "non-appropriated budget." Actual expenditures may not exceed budgeted appropriations at the fund level. All appropriations lapse at yearend 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 Justice Assistance Grant Fund, Park Development Fund, 2018 Parks bond Act, LA County Park Maintenance Grant Fund, and Prop. 68 Fund in the current year.

City of Lawndale
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2025
67 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 35,358,181 $ 35,358,181 $ 35,358,181 $ - $ Resources (Inflows):

Taxes 12,520,462 12,520,462 12,886,481 366,019 Licenses and permits 761,000 761,000 727,133 (33,867) Intergovernmental 4,847,303 4,847,303 4,848,016 713 Charges for services 878,320 878,320 1,230,241 351,921 Use of money and property 1,279,668 1,279,668 1,410,198 130,530 Fines and forfeitures 710,000 710,000 963,073 253,073
Miscellaneous 35,000 35,000 25,056 (9,944) Proceeds from sale of capital asset - - 110,812 110,812 Amounts Available for Appropriations 56,389,934 56,389,934 57,559,191 1,169,257 Charges to Appropriation (Outflows):

General government 5,616,313 5,624,180 5,244,305 379,875 Public safety 7,440,014 7,440,014 7,267,724 172,290 Code enforcement and animal control 1,504,146 1,567,019 1,495,586 71,433 Housing 1,179,031 1,179,031 1,135,460 43,571 Recreation and community services 1,267,106 1,275,416 1,074,694 200,722 Public works 2,528,865 3,096,865 2,344,467 752,398 Capital outlay 955,500 387,500 232,492 155,008
Debt service:

Principal retirement 47,281 47,281 47,281 -
Interest and fiscal charges 10,470 10,470 10,470 - Transfers in - (3,000) (3,000) - Transfers out - - 169,657 (169,657) Total Charges to Appropriations 20,548,726 20,624,776 19,019,136 1,605,640 Budgetary Fund Balance, June 30 35,841,208 $ 35,765,158 $ 38,540,055 $ 2,774,897 $ City of Lawndale
Required Supplementary Information
Budgetary Comparison Schedule
Restricted Urban Development
For the Fiscal Year Ended June 30, 2025
68 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 5,736,084 $ 5,736,084 $ 5,736,084 $ - $ Resources (Inflows):

Use of money and property 57,000 57,000 100,867 43,867 Amounts Available for Appropriations 5,793,084 5,793,084 5,836,951 43,867 Charges to Appropriation (Outflows):

Transfers out 179,260 179,260 179,260 - Total Charges to Appropriations 179,260 179,260 179,260 - Budgetary Fund Balance, June 30 5,613,824 $ 5,613,824 $ 5,657,691 $ 43,867 $ City of Lawndale
Required Supplementary Information
Budgetary Comparison Schedule
ARPA Fund
For the Fiscal Year Ended June 30, 2025
69 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (deficit), July 1 146,691 $ 146,691 $ 146,691 $ - $ Resources (Inflows):

Intergovernmental - - 3,870,354 3,870,354 Amounts Available for Appropriations 146,691 146,691 4,017,045 3,870,354 Charges to Appropriation (Outflows):

General government 1,507,602 1,671,296 979,769 691,527 Public safety - 261,600 242,600 19,000 Code enforcement and animal control 261,600 249,412 249,412 - Capital outlay 3,139,000 3,285,000 2,395,573 889,427 Transfers out - 3,000 3,000 Total Charges to Appropriations 4,908,202 5,470,308 3,870,354 1,599,954 Budgetary Fund Balance, June 30 (4,761,511) $ (5,323,617) $ 146,691 $ 5,470,308 $ City of Lawndale
Required Supplementary Information
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
70 Measurement Date
Proportion of the net
pension liability1 Proportionate share of the net pension liability Covered payroll Proportionate share of
the net pension liability
as a percentage of
covered payroll
Proportionate share of the
fiduciary net position as a
percentage of the Plan's
total pension liability
6/30/2015 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% 75.26%
6/30/2019 0.074751% 7,659,716 3,400,803 225.23% 75.26%
6/30/2020 0.077080% 8,386,672 3,590,921 233.55% 75.10%
6/30/2021 0.086230% 4,663,673 3,622,805 128.73% 88.29%
6/30/2022 0.087107% 10,061,592 3,379,109 297.76% 76.68% 6/30/2023 0.216046% 10,803,222 3,574,506 302.23% 76.21% 6/30/2024 0.220880% 10,741,545 4,141,789 259.35% 78.08% 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
Required Supplementary Information
Schedule of Plan Contributions
CalPERS Cost Sharing Miscellaneous Plan
Last Ten Years
71 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%
2023-2024 1,113,980 (1,113,980) - 4,141,789 26.90%
2024-2025 1,286,550 (1,286,550) - 4,404,303 29.21%
Notes to Schedule:

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Change in Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate 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. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.

City of Lawndale
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios as of the Measurement Date
PARS Retirement Enhancement Plan
Last Ten Years
72 Measurement Date 2025 2024 2023 2022 2021 2020
Total Pension Liability
Service cost - $ - $ - $ - $ - $ - $
Interest on the total pension liability 51,279 52,190 52,912 53,042 53,430 57,391 Effect of economic/demographic gains or losses - 25,049 - 7,702 - (67,384) Effect of assumption changes or inputs - 39,793 - - - 4,554 Benefit payments, including refunds of employee contributions (65,942) (64,649) (63,381) (62,138) (56,764) (54,265) Net Change in Total Pension Liability (14,663) 52,383 (10,469) (1,394) (3,334) (59,704) Total Pension Liability - Beginning 887,129 834,746 845,215 846,609 849,943 909,647 Total Pension Liability - Ending (a) 887,129 872,466 834,746 845,215 846,609 849,943 Plan Fiduciary Net Position Employer contributions 24,400 24,400 30,997 48,680 54,070 - Net investment income 68,226 76,537 48,035 (108,611) 151,416 21,288 Benefit payments, including refunds of employee contributions (65,942) (64,649) (63,381) (62,138) (56,764) (54,265) Administrative expenses (3,858) (3,653) (3,584) (4,149) (3,956) (3,535) Net Change in Fiduciary Net Position 22,826 32,635 12,067 (126,218) 144,766 (36,512) Plan Fiduciary Net Position - Beginning 744,633 711,998 699,931 826,149 681,383 717,895 Plan Fiduciary Net Position - Ending (b) 744,633 767,459 711,998 699,931 826,149 681,383 Plan Net Pension Liability - Ending (a) - (b) $ 142,496 105,007 $ 122,748 $ 145,284 $ 20,460 $ 168,560 $ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 88.0% 83.9% 85.3% 82.8% 97.6% 80.2%
Covered Payroll(1) N/A 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 N/A (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, 2024 valuation date (2025 measurement date), there were no significant changes in discount rate of

6.0% and long-term expected rate of return of 6.0%. 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 five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent.

In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
73 2019 2018 2017 2016 (2) $ 24,018 24,739 $ 28,713 $ - $ 53,113 56,830 50,372 -
11,039 - - -
- (42,305) 41,097 -
(21,451) - (14,562) -
66,719 39,264 105,620 -
803,664 870,383 698,044 640,349
909,647 870,383 803,664 640,349
19,890 35,683 19,889 -
40,514 42,049 60,634 -
(21,451) (42,305) (14,562) -
(3,463) (3,447) (3,149) -
35,490 31,980 62,812 -
650,425 685,915 587,613 586,056
717,895 685,915 650,425 586,056
$ 191,752 $ 184,468 $ 153,239 $ 54,293

78.9% 78.8% 80.9% 91.5%
N/A 314,042 $ 304,044 $ 295,188 $
N/A 58.7% 50.4% 18.4%
City of Lawndale
Required Supplementary Information
Schedule of Plan Contributions
PARS Retirement Enhancement Plan
Last Ten Years
74 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
2023-2024 7,097 (24,400) (17,303) N/A N/A
2024-2025 51,779 (24,400) 27,379 N/A N/A
(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 2024-25 were from the June 30, 2024 Funding Valuation Report.

Entry Age Normal
For details, see June 30, 2024 Funding Valuation Report.

Fair Value of Assets

6.00%

2.00%
Varies by Entry Age and Service
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.

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

City of Lawndale
Required Supplementary Information
Schedule of Investment Returns
PARS Retirement Enhancement Plan
Last Ten Years
75 Fiscal Year Net Money-Weighted Rate of Return
2016 -0.14%
2017 1.14%
2018 6.15%
2019 6.18%
2020 3.08%
2021 21.94%
2022 -13.05%
2023 6.91%
2024 10.91%
2025 9.30%
City of Lawndale
Required Supplementary Information
Schedule of Changes in the Total OPEB Liability and Related Ratios Last Ten Years*
76 Fiscal Year 2025 2024 2023 2022
Total OPEB Liability
Service cost 365,025 $ 255,177 $ 267,581 $ 447,040 $
Interest on the total OPEB liability 283,966 213,483 196,877 166,575 Experience (gains)/losses 22,096 1,180,042 (1,136) (581,425) Changes in assumptions (592,601) (103,638) (250,352) (1,769,151) Benefit payments (198,828) (168,729) (238,584) (230,013) Implicit subsidy credit (64,220) (53,486) - - Net change in total OPEB liability 1,322,849 (184,562) (25,614) (1,966,974) Total OPEB liability - beginning 5,386,567 6,709,416 5,412,180 7,379,154 Total OPEB liability - ending (a) $ 6,709,416 6,524,854 $ 5,386,567 $ 5,412,180 $ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered-employee payroll(1) $ 4,141,789 4,404,303 $ 3,820,311 $ 3,174,733 $ Net OPEB liability as a percentage of covered-employee payroll 148.15% 161.99% 141.00% 170.48% * Historical information is required only for measurement for which GASB 75 is applicable.

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.

Changes in assumptions: For 2025, the discount rate increased from 4.09% to 4.71% based on the municipal bond index. For 2024, the discount rate increased from 3.86% to 4.09% based on the 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%. 77 2021 2020 2019 2018
$ 205,330 425,674 $ 184,378 $ 179,443 $
159,173 155,567 143,562 146,967
276,830 - - -
1,930,822 46,222 209,309 -
(104,378) (213,405) (99,021) (95,212)
- - - -
2,467,777 414,058 438,228 231,198
4,497,319 6,965,096 4,059,091 3,827,893 $ 6,965,096 7,379,154 $ 4,497,319 $ 4,059,091 $

0.00% 0.00% 0.00% 0.00%
$ 2,535,647 2,574,004 $ 2,918,274 $ 2,935,427 $
286.68% 274.69% 154.11% 138.28%

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SUPPLEMENTARY INFORMATION

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City of Lawndale
Non-Major Governmental Funds
78 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.

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.

Arts in Public Places - To expand the City’s artistic and cultural resources by enhancing the environment and quality of life as new development occurs. To comply with proposed ordinance, a project would include a publicly accessible civic artwork valued at one percent of the project’s building valuation.

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)
79 Special Revenue Funds (Continued)
Ground Water Sustainability (AB 939) - 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 - 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.

Measure A - The safe, clean neighborhood parks, open space, beached, rivers protection, and water conservation measure to levy a special tax and issuing bonds approved by voters on November 8, 2016.

Priority Legislative Budget Projects (PLBP) Grant Fund - To account for the allocation of funds for improvements to the City’s Residential Street Rehabilitation Projects.

City of Lawndale
Non-Major Governmental Funds (Continued)
80 Capital Projects Funds
The following capital projects funds have been classified as non-major funds:

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

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

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

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

Measure R - To account for the Los Angeles County Metropolitan Transportation Authority Measure R halfcent 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, 2025
81 Gas Tax Air Quality
Proposition A
Local Transit
Assistance
Narcotics
Forfeiture
State COPS
Grant
Assets
Cash and investments 628,939 $ 312,200 $ 3,142,255 $ 59,136 $ 397,786 $ Receivables:

Accounts 75,265 10,740 - - - Grants - - - - - Notes and loans - - - - - Land held for development - - - - - Total Assets 704,204 $ 322,940 $ 3,142,255 $ 59,136 $ 397,786 $ Liabilities and Fund Balances
Liabilities
Accounts payable 32,814 $ - $ 67,675 $ - $ 20,625 $
Accrued liabilities 10,509 - 7,378 - - Due to other funds - - - - - Total Liabilities 43,323 - 75,053 - 20,625 Fund Balances (deficit) Restricted for:

Community development projects - - - - - Public safety - - - 59,136 377,161 Recreation and community services - - 3,067,202 - - Public works 660,881 - - - - Air quality - 322,940 - - - Municipal services - - - - - Housing - - - - - Unassigned - - - - - Total Fund Balances 660,881 322,940 3,067,202 59,136 377,161 Total Liabilities and Fund Balances 704,204 $ 322,940 $ 3,142,255 $ 59,136 $ 397,786 $ Special Revenue Funds
(Continued)
82 Used Oil
Recycling Grant
Lawndale Cable
Usage
Corporation
Department of
Conservation
Grant
Justice
Assistance
Grant
Park
Development
Measure M
Local Return
Art in Public
Places
$ 250,758 1,176 $ 23,978 $ - $ 25,622 $ 2,974,831 $ 25,903 $ 6,028 - - - - - -
- - - - - - -
- - - - - - -
- - - - - - - $ 256,786 1,176 $ 23,978 $ - $ 25,622 $ 2,974,831 $ 25,903 $ $ 37,473 - $ 7,894 $ - $ - $ - $ 2,901 $
- - - - - - -
- - - 9,873 - - -
37,473 - 7,894 9,873 - - 2,901
- - - - - - -
- - - - - - -
- - 16,084 - 25,622 - -
- 1,176 - - - 2,974,831 -
- - - - - - -
219,313 - - - - - -
- - - - - - 23,002
- - - (9,873) - - -
219,313 1,176 16,084 (9,873) 25,622 2,974,831 23,002 $ 256,786 1,176 $ 23,978 $ - $ 25,622 $ 2,974,831 $ 25,903 $ Special Revenue Funds
City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
83 LA County
Parks
Maintenance
Grant SB1 RMRA
Groundwater
Sustainability
(AB 939)
Disability
Access
(AB 1379)
Measure W Safe
Clean Water
Assets
Cash and investments 4,050 $ 1,663,803 $ 904,813 $ 98,976 $ 890,351 $ Receivables:

Accounts - 152,817 49,353 - - Grants - - - - - Notes and loans - - - - - Land held for development - - - - - Total Assets 4,050 $ 1,816,620 $ 954,166 $ 98,976 $ 890,351 $ Liabilities and Fund Balances
Liabilities
Accounts payable - $ - $ - $ 88 $ 1,050 $
Accrued liabilities - 3,999 6,109 - 599 Due to other funds - - - - - Total Liabilities - 3,999 6,109 88 1,649 Fund Balances (deficit) Restricted for:

Community development projects - - - - - Public safety - - - - - Recreation and community services 4,050 - - - - Public works - 1,812,621 948,057 98,888 888,702 Air quality - - - - - Municipal services - - - - - Housing - - - - - Unassigned - - - - - Total Fund Balances 4,050 1,812,621 948,057 98,888 888,702 Total Liabilities and Fund Balances 4,050 $ 1,816,620 $ 954,166 $ 98,976 $ 890,351 $ Special Revenue Funds
(Continued)
84 SB1383 Local
Assistance
Prop 68
2018 Parks
Bond Act
SB2 Housing
Grant
Local Early
Action Plan
(LEAP)
Lawndale
Housing
Authority Measure A PLBP Grant
$ - 74,702 $ 168,028 $ 155,641 $ 2,260,135 $ - $ 101,616 $ - - - - - - -
- - - - - - -
- - - - 76,562 - -
- - - - 487,083 - - $ - 74,702 $ 168,028 $ 155,641 $ 2,823,780 $ - $ 101,616 $ $ - 925 $ - $ - $ 718 $ - $ 58,844 $
- 3,446 - - 4,961 - -
1,974 - - - - 157,000 -
1,974 4,371 - - 5,679 157,000 58,844
- - - - - - -
- - - - - - -
- - - - - - -
- 70,331 168,028 155,641 - - -
- - - - - - -
- - - - - - -
- - - - 2,818,101 - 42,772
(1,974) - - - - (157,000) -
(1,974) 70,331 168,028 155,641 2,818,101 (157,000) 42,772 $ - 74,702 $ 168,028 $ 155,641 $ 2,823,780 $ - $ 101,616 $ Special Revenue Funds
City of Lawndale
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
85 TDA Article 3
(Metro)
Proposition C
Local Transit
Assistance
Community
Development
Block Grant Prop C25 Grant Measure R
Assets
Cash and investments - $ 1,635,341 $ - $ 268,084 $ 2,272,499 $ Receivables:

Accounts 22,459 - - - - Grants - - 348,898 - - Notes and loans - - 189,869 - - Land held for development - - - - - Total Assets 22,459 $ 1,635,341 $ 538,767 $ 268,084 $ 2,272,499 $ Liabilities and Fund Balances
Liabilities
Accounts payable 22,459 $ 55,140 $ 31,975 $ - $ 2,293 $ Accrued liabilities - 5,542 1,795 - 2,480 Due to other funds 1,643 - 360,061 - - Total Liabilities 24,102 60,682 393,831 - 4,773 Fund Balances (deficit) Restricted for:

Community development projects - - 144,936 - - Public safety - - - - - Recreation and community services - - - - - Public works - 1,574,659 - 268,084 2,267,726 Air quality - - - - - Municipal services - - - - - Housing - - - - - Unassigned (1,643) - - - - Total Fund Balances (1,643) 1,574,659 144,936 268,084 2,267,726 Total Liabilities and Fund Balances 22,459 $ 1,635,341 $ 538,767 $ 268,084 $ 2,272,499 $ Capital Projects Funds
(Concluded)
86 Capital Projects
Metro STPL
Exchange 2017
Total
Non-major
Governmental
Funds
$ 18,345,291 4,668 $
316,662 -
348,898 -
266,431 -
487,083 - $ 19,764,365 4,668 $
$ 342,874 - $
46,818 -
530,551 -
920,243 -
144,936 -
436,297 -
3,112,958 -
11,894,293 4,668
322,940 -
219,313 -
2,883,875 -
(170,490) -
18,844,122 4,668 $ 19,764,365 4,668 $
City of Lawndale
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2025
87 Gas Tax Air Quality
Proposition A
Local Transit
Assistance
Narcotics
Forfeiture
State COPS
Grant
Revenues
Intergovernmental 886,250 $ 41,128 $ 810,304 $ - $ 194,663 $ Charges for services - - 3,019 - - Use of money and property 19,849 9,853 99,275 1,867 12,556 Miscellaneous - - 59,701 - - Total Revenues 906,099 50,981 972,299 1,867 207,219 Expenditures Current:

General government - - - - - Public safety - - - - 123,750 Code enforcement and animal control - - - - - Housing - - 94,258 - - Recreation and community services - - 796,036 - - Public works 803,162 - - - - Capital outlay - - - - - Total Expenditures 803,162 - 890,294 - 123,750 Excess (Deficiency) of Revenues Over (Under) Expenditures 102,937 50,981 82,005 1,867 83,469 Other Financing Sources (Uses) Transfers in - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances 102,937 50,981 82,005 1,867 83,469 Fund Balances (deficit) Beginning of year 557,944 271,959 2,985,197 57,269 293,692 End of Year $ 322,940 660,881 $ 3,067,202 $ 59,136 $ 377,161 $ Special Revenue Funds
(Continued)
88 Used Oil
Recycling
Grant
Lawndale
Cable Usage
Corporation
Department of
Conservation
Grant
Justice
Assistance
Grant
Park
Development
Measure M
Local Return
Art in Public
Places
$ - - $ 140 $ - $ - $ 571,017 $ - $
25,869 - - - - - 8,000
7,918 - - - 808 92,955 817
- - - - - - -
33,787 - 140 - 808 663,972 8,817
61,766 - - - - 100,000 -
- - - - - - -
- - - - - - -
- - - - - - -
- - 743 - - - 2,901
- 1,436 - - - 24,978 -
- - - - - - -
61,766 1,436 743 - - 124,978 2,901
(27,979) (1,436) (603) - 808 538,994 5,916
- - - - - - -
- - - - - - -
(27,979) (1,436) (603) - 808 538,994 5,916
247,292 2,612 16,687 (9,873) 24,814 2,435,837 17,086 $ 219,313 1,176 $ 16,084 $ (9,873) $ 25,622 $ 2,974,831 $ 23,002 $ 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, 2025 (Continued)
89 LA County
Parks
Maintenance
Grant SB1 RMRA
Groundwater
Sustainability
(AB 939)
Disability
Access
(AB 1379)
Measure W
Safe Clean
Water
Revenues
Intergovernmental - $ 867,193 $ 195,681 $ 9,719 $ 234,100 $ Charges for services - - - - - Use of money and property - 52,502 28,546 3,125 28,099 Miscellaneous - - 146,700 - - Total Revenues - 919,695 370,927 12,844 262,199 Expenditures Current:

General government - 20 - - 19,656 Public safety - - - - - Code enforcement and animal control - - - - - Housing - - - - - Recreation and community services - - - - - Public works - 402,669 153,400 - 78,259 Capital outlay - - - - - Total Expenditures - 402,689 153,400 - 97,915 Excess (Deficiency) of Revenues Over (Under) Expenditures - 517,006 217,527 12,844 164,284 Other Financing Sources (Uses) Transfers in - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances - 517,006 217,527 12,844 164,284 Fund Balances (deficit) Beginning of year 4,050 1,295,615 730,530 86,044 724,418 End of Year $ 1,812,621 4,050 $ 948,057 $ 98,888 $ 888,702 $ 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 Measure A PLBP Grant
$ - - $ - $ 116,271 $ - $ - $ - $
- - - - - - -
- 2,358 5,302 4,904 60,349 - 3,368
- - - - - - -
- 2,358 5,302 121,175 60,349 - 3,368
- 32,450 - - - - -
- - - - - - -
- - - - - 74,470 -
- 36,522 - - 179,167 - -
- - - - - - -
- - - - - - -
- - - - - - 1,611,620
- 68,972 - - 179,167 74,470 1,611,620
- (66,614) 5,302 121,175 (118,818) (74,470) (1,608,252) - - - - 348,917 - -
- - - - 348,917 - -
- (66,614) 5,302 121,175 230,099 (74,470) (1,608,252)
(1,974) 136,945 162,726 34,466 2,588,002 (82,530) 1,651,024 $ (1,974) 70,331 $ 168,028 $ 155,641 $ 2,818,101 $ (157,000) $ 42,772 $ 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, 2025 (Continued)
91 TDA Article 3
(Metro)
Proposition C
Local Transit
Assistance
Community
Development
Block Grant
Prop C25
Grant Measure R
Revenues
Intergovernmental 22,459 $ 672,127 $ 441,746 $ - $ 504,002 $ Charges for services - - - - - Use of money and property - 50,446 - - 72,921 Miscellaneous - - - - - Total Revenues 22,459 722,573 441,746 - 576,923 Expenditures Current:

General government - - - - - Public safety - - - - - Code enforcement and animal control - - - - - Housing - - - - - Recreation and community services - - - - - Public works 22,459 447,177 115,158 - 90,265 Capital outlay - 39,265 348,321 - - Total Expenditures 22,459 486,442 463,479 - 90,265 Excess (Deficiency) of Revenues Over (Under) Expenditures - 236,131 (21,733) - 486,658 Other Financing Sources (Uses) Transfers in - - - - - Total Other Financing Sources (Uses) - - - - - Net Change in Fund Balances - 236,131 (21,733) - 486,658 Fund Balances (deficit) Beginning of year (1,643) 1,338,528 166,669 268,084 1,781,068 End of Year $ 1,574,659 (1,643) $ 144,936 $ 268,084 $ 2,267,726 $ Capital Projects Funds

(Concluded)
92 Capital Projects
Metro STPL
Exchange 2017
Total
Non-major
Governmental
Funds
$ 5,566,800 - $
36,888 -
557,965 147
206,401 -
6,368,054 147

213,892 -
123,750 -
74,470 -
309,947 -
799,680 -
2,138,963 -
1,999,206 -
5,659,908 -
708,146 147
348,917 -
348,917 -
1,057,063 147
17,787,059 4,521 $ 18,844,122 4,668 $

City of Lawndale
Budgetary Comparison Schedule
Gas Tax
For the Fiscal Year Ended June 30, 2025
93 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 557,944 $ 557,944 $ 557,944 $ - $ Resources (Inflows):

Intergovernmental 871,204 871,204 886,250 15,046 Use of money and property 11,000 11,000 19,849 8,849 Amounts Available for Appropriation 1,440,148 1,440,148 1,464,043 23,895 Charges to Appropriation (Outflows):

General government 100,000 100,000 - 100,000 Public works 892,949 892,949 803,162 89,787 Total Charges to Appropriation 992,949 992,949 803,162 189,787 Budgetary Fund Balance, June 30 447,199 $ 447,199 $ 660,881 $ 213,682 $ City of Lawndale
Budgetary Comparison Schedule
Air Quality
For the Fiscal Year Ended June 30, 2025
94 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 271,959 $ 271,959 $ 271,959 $ - $ Resources (Inflows):

Intergovernmental 42,000 42,000 41,128 (872) Use of money and property 11,000 11,000 9,853 (1,147) Amounts Available for Appropriation 324,959 324,959 322,940 (2,019) Budgetary Fund Balance, June 30 324,959 $ 324,959 $ 322,940 $ (2,019) $ City of Lawndale
Budgetary Comparison Schedule
Proposition A Local Transit Assistance
For the Fiscal Year Ended June 30, 2025
95 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,985,197 $ 2,985,197 $ 2,985,197 $ - $ Resources (Inflows):

Intergovernmental 868,607 868,607 810,304 (58,303) Charges for services - - 3,019 3,019 Use of money and property 124,000 124,000 99,275 (24,725) Miscellaneous - - 59,701 59,701 Amounts Available for Appropriation 3,977,804 3,977,804 3,957,496 (20,308) Charges to Appropriation (Outflows):

Housing 35,933 35,933 94,258 (58,325) Recreation and community services 1,133,448 1,133,448 796,036 337,412 Total Charges to Appropriation 1,169,381 1,169,381 890,294 279,087 Budgetary Fund Balance, June 30 2,808,423 $ 2,808,423 $ 3,067,202 $ 258,779 $ City of Lawndale
Budgetary Comparison Schedule
Narcotics Forfeiture
For the Fiscal Year Ended June 30, 2025
96 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 57,269 $ 57,269 $ 57,269 $ - $ Resources (Inflows):

Use of money and property 2,000 2,000 1,867 (133) Amounts Available for Appropriation 59,269 59,269 59,136 (133) Budgetary Fund Balance, June 30 59,269 $ 59,269 $ 59,136 $ (133) $ City of Lawndale
Budgetary Comparison Schedule
State COPS Grant
For the Fiscal Year Ended June 30, 2025
97 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 293,692 $ 293,692 $ 293,692 $ - $ Resources (Inflows):

Intergovernmental 180,000 180,000 194,663 14,663 Use of money and property 9,000 9,000 12,556 3,556 Amounts Available for Appropriation 482,692 482,692 500,911 18,219 Charges to Appropriation (Outflows):

Public safety 168,034 168,034 123,750 44,284 Total Charges to Appropriation 168,034 168,034 123,750 44,284 Budgetary Fund Balance, June 30 314,658 $ 314,658 $ 377,161 $ 62,503 $ City of Lawndale
Budgetary Comparison Schedule
Used Oil Recycling Grant
For the Fiscal Year Ended June 30, 2025
98 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,612 $ 2,612 $ 2,612 $ - $ Amounts Available for Appropriation 2,612 2,612 2,612 - Charges to Appropriation (Outflows):

Public works 5,000 5,000 1,436 3,564 Total Charges to Appropriation 5,000 5,000 1,436 3,564 Budgetary Fund Balance, June 30 (2,388) $ (2,388) $ 1,176 $ 3,564 $ City of Lawndale
Budgetary Comparison Schedule
Lawndale Cable Usage Corporation
For the Fiscal Year Ended June 30, 2025
99 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 247,292 $ 247,292 $ 247,292 $ - $ Resources (Inflows):

Charges for services 40,000 40,000 25,869 (14,131) Use of money and property 7,000 7,000 7,918 918 Amounts Available for Appropriation 294,292 294,292 281,079 (13,213) Charges to Appropriation (Outflows):

General government 113,000 113,000 61,766 51,234 Total Charges to Appropriation 113,000 113,000 61,766 51,234 Budgetary Fund Balance, June 30 181,292 $ 181,292 $ 219,313 $ 38,021 $ City of Lawndale
Budgetary Comparison Schedule
Department of Conservation Grant
For the Fiscal Year Ended June 30, 2025
100
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 16,687 $ 16,687 $ 16,687 $ - $ Resources (Inflows):

Intergovernmental 8,080 8,080 140 (7,940) Amounts Available for Appropriation 24,767 24,767 16,827 (7,940) Charges to Appropriation (Outflows):

Recreation and community services 8,136 8,136 743 7,393 Total Charges to Appropriation 8,136 8,136 743 7,393 Budgetary Fund Balance, June 30 16,631 $ 16,631 $ 16,084 $ (547) $ City of Lawndale
Budgetary Comparison Schedule
Measure M Local Return
For the Fiscal Year Ended June 30, 2025
101
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,435,837 $ 2,435,837 $ 2,435,837 $ - $ Resources (Inflows):

Intergovernmental 612,413 612,413 571,017 (41,396) Use of money and property 75,000 75,000 92,955 17,955 Amounts Available for Appropriation 3,123,250 3,123,250 3,099,809 (23,441) Charges to Appropriation (Outflows):

Geeral government 1,852,400 1,882,400 100,000 1,782,400 Public works 1,015,872 1,015,872 24,978 990,894 Total Charges to Appropriation 2,868,272 2,898,272 124,978 2,773,294 Budgetary Fund Balance, June 30 254,978 $ 224,978 $ 2,974,831 $ 2,749,853 $ City of Lawndale
Budgetary Comparison Schedule
Art in Public Places
For the Fiscal Year Ended June 30, 2025
102
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 17,086 $ 17,086 $ 17,086 $ - $ Resources (Inflows):

Charges for services - - 8,000 8,000 Use of money and property - - 817 817 Amounts Available for Appropriation 17,086 17,086 25,903 8,817 Charges to Appropriation (Outflows):

Recreation and community services - 15,000 2,901 12,099 Total Charges to Appropriation - 15,000 2,901 12,099 Budgetary Fund Balance, June 30 17,086 $ 2,086 $ 23,002 $ 20,916 $ City of Lawndale
Budgetary Comparison Schedule
SB1 RMRA
For the Fiscal Year Ended June 30, 2025
103
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1, as restated 1,295,615 $ 1,295,615 $ 1,295,615 $ - $ Resources (Inflows):

Intergovernmental 813,530 813,530 867,193 53,663 Use of money and property 38,000 38,000 52,502 14,502 Amounts Available for Appropriation 2,147,145 2,147,145 2,215,310 68,165 Charges to Appropriation (Outflows):

General government 1,046,040 1,046,040 20 1,046,020 Public works 641,211 641,211 402,669 238,542 Total Charges to Appropriation 1,687,251 1,687,251 402,689 1,284,562 Budgetary Fund Balance, June 30 459,894 $ 459,894 $ 1,812,621 $ 1,352,727 $ City of Lawndale
Budgetary Comparison Schedule
Groundwater Sustainability (AB 939)
For the Fiscal Year Ended June 30, 2025
104
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 730,530 $ 730,530 $ 730,530 $ - $ Resources (Inflows):

Intergovernmental 175,000 175,000 195,681 20,681 Use of money and property 15,000 15,000 28,546 13,546 Miscellaneous - - 146,700 146,700 Amounts Available for Appropriation 920,530 920,530 1,101,457 180,927 Charges to Appropriation (Outflows):

Public works 215,332 215,332 153,400 61,932 Total Charges to Appropriation 215,332 215,332 153,400 61,932 Budgetary Fund Balance, June 30 705,198 $ 705,198 $ 948,057 $ 242,859 $ City of Lawndale
Budgetary Comparison Schedule
Disability Access (AB 1379)
For the Fiscal Year Ended June 30, 2025
105
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 86,044 $ 86,044 $ 86,044 $ - $ Resources (Inflows):

Intergovernmental 10,000 10,000 9,719 (281) Use of money and property 2,500 2,500 3,125 625 Amounts Available for Appropriation 98,544 98,544 98,888 344 Budgetary Fund Balance, June 30 98,544 $ 98,544 $ 98,888 $ 344 $ City of Lawndale
Budgetary Comparison Schedule
Measure W Safe Clean Water
For the Fiscal Year Ended June 30, 2025
106
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 724,418 $ 724,418 $ 724,418 $ - $ Resources (Inflows):

Intergovernmental 230,000 230,000 234,100 4,100 Use of money and property 20,000 20,000 28,099 8,099 Amounts Available for Appropriation 974,418 974,418 986,617 12,199 Charges to Appropriation (Outflows):

General government 277,214 277,214 19,656 257,558 Public works 92,000 92,000 78,259 13,741 Total Charges to Appropriation 369,214 369,214 97,915 271,299 Budgetary Fund Balance, June 30 605,204 $ 605,204 $ 888,702 $ 283,498 $ City of Lawndale
Budgetary Comparison Schedule
SB1383 Local Assistance
For the Fiscal Year Ended June 30, 2025
107
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 136,945 $ 136,945 $ 136,945 $ - $ Resources (Inflows):

Use of money and property - - 2,358 2,358
Amounts Available for Appropriation 136,945 136,945 139,303 2,358 Charges to Appropriation (Outflow):

General Government 40,970 40,970 32,450 8,520 Housing - 125,093 36,522 88,571 Total Charges to Appropriation 40,970 166,063 68,972 97,091 Budgetary Fund Balance, June 30 95,975 $ (29,118) $ 70,331 $ 99,449 $ City of Lawndale
Budgetary Comparison Schedule
SB2 Housing Grant
For the Fiscal Year Ended June 30, 2025
108
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 162,726 $ 162,726 $ 162,726 $ - $ Resources (Inflows):

Intergovernmental 78,000 78,000 - (78,000) Use of money and property - - 5,302 5,302 Budgetary Fund Balance, June 30 240,726 $ 240,726 $ 168,028 $ (72,698) $ City of Lawndale
Budgetary Comparison Schedule
Local Early Action Plan (LEAP)
For the Fiscal Year Ended June 30, 2025
109
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 34,466 $ 34,466 $ 34,466 $ - $ Resources (Inflows):

Intergovernmental 116,500 116,500 116,271 (229) Use of money and property - - 4,904 4,904 Budgetary Fund Balance, June 30 150,966 $ 150,966 $ 155,641 $ 4,675 $ City of Lawndale
Budgetary Comparison Schedule
Lawndale Housing Authority
For the Fiscal Year Ended June 30, 2025
110
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,588,002 $ 2,588,002 $ 2,588,002 $ - $ Resources (Inflows):

Use of money and property 54,000 54,000 60,349 6,349 Transfers in 179,260 179,260 348,917 169,657 Amounts Available for Appropriation 2,821,262 2,821,262 2,997,268 176,006 Charges to Appropriation (Outflows):

Housing 183,025 183,025 179,167 3,858 Total Charges to Appropriation 183,025 183,025 179,167 3,858 Budgetary Fund Balance, June 30 2,638,237 $ 2,638,237 $ 2,818,101 $ 179,864 $ City of Lawndale
Budgetary Comparison Schedule
Measure A
For the Fiscal Year Ended June 30, 2025
111
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (Deficit), July 1 (82,530) $ (82,530) $ (82,530) $ - $ Resources (Inflows):

Intergovernmental 1,425,622 1,425,622 - (1,425,622) Amounts Available for Appropriation 1,343,092 1,343,092 (82,530) (1,425,622) Charges to Appropriation (Outflows):

Code enforcement and animal control 2,790,622 2,790,622 74,470 2,716,152 Total Charges to Appropriation 2,790,622 2,790,622 74,470 2,716,152 Budgetary Fund Balance (Deficit), June 30 (1,447,530) $ (1,447,530) $ (157,000) $ 1,290,530 $ City of Lawndale
Budgetary Comparison Schedule
PLBP Grant
For the Fiscal Year Ended June 30, 2025
112
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,651,024 $ 1,651,024 $ 1,651,024 $ - $ Resources (Inflows):

Intergovernmental 2,000,000 2,000,000 - (2,000,000) Use of money and property - - 3,368 3,368 Amounts Available for Appropriation 3,651,024 3,651,024 1,654,392 (1,996,632) Charges to Appropriation (Outflows):

Capital outlay 2,000,000 2,000,000 1,611,620 388,380 Total Charges to Appropriation 2,000,000 2,000,000 1,611,620 388,380 Budgetary Fund Balance, June 30 1,651,024 $ 1,651,024 $ 42,772 $ (1,608,252) $ City of Lawndale
Budgetary Comparison Schedule
TDA Article 3 (Metro)
For the Fiscal Year Ended June 30, 2025
113
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance (Deficit), July 1 (1,643) $ (1,643) $ (1,643) $ - $ Resources (Inflows):

Intergovernmental 31,719 54,119 (31,660) 22,459 Amounts Available for Appropriation 30,076 52,476 20,816 (31,660) Charges to Appropriation (Outflows):

Public works - 22,400 22,459 (59) Total Charges to Appropriation - 22,400 22,459 (59) Budgetary Fund Balance (Deficit), June 30 $ 30,076 $ 30,076 $ (1,643) $ (31,719) City of Lawndale
Budgetary Comparison Schedule
Proposition C Local Transit Assistance
For the Fiscal Year Ended June 30, 2025
114
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,338,528 $ 1,338,528 $ 1,338,528 $ - $ Resources (Inflows):

Intergovernmental 720,486 720,486 672,127 (48,359) Use of money and property 50,000 50,000 50,446 446 Amounts Available for Appropriation 2,109,014 2,109,014 2,061,101 (47,913) Charges to Appropriation (Outflows):

Public works 960,000 960,000 - 960,000 Public works 687,338 687,338 447,177 240,161 Capital outlay 349,000 349,000 39,265 309,735
Total Charges to Appropriation 1,996,338 1,996,338 486,442 1,509,896 Budgetary Fund Balance, June 30 112,676 $ 112,676 $ 1,574,659 $ 1,461,983 $ City of Lawndale
Budgetary Comparison Schedule
Community Development Block Grant
For the Fiscal Year Ended June 30, 2025
115
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 166,669 $ 166,669 $ 166,669 $ - $ Resources (Inflows):

Intergovernmental 268,304 268,304 441,746 173,442 Amounts Available for Appropriation 434,973 434,973 608,415 173,442 Charges to Appropriation (Outflows):

Public works 91,976 148,666 115,158 33,508 Capital outlay 665,000 665,000 348,321 316,679 Total Charges to Appropriation 756,976 813,666 463,479 350,187 Budgetary Fund Balance, June 30 (322,003) $ (378,693) $ 144,936 $ 523,629 $ City of Lawndale
Budgetary Comparison Schedule
Prop C25 Grant
For the Fiscal Year Ended June 30, 2025
116
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 268,084 $ 268,084 $ 268,084 $ - $ Amounts Available for Appropriation 268,084 268,084 268,084 - Charges to Appropriation (Outflows):

Public works 38,597 38,597 - 38,597 Total Charges to Appropriation 38,597 38,597 - 38,597 Budgetary Fund Balance, June 30 229,487 $ 229,487 $ 268,084 $ 38,597 $ City of Lawndale
Budgetary Comparison Schedule
Measure R
For the Fiscal Year Ended June 30, 2025
117
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 1,781,068 $ 1,781,068 $ 1,781,068 $ - $ Resources (Inflows):

Intergovernmental 540,365 540,365 504,002 (36,363) Use of money and property 31,700 31,700 72,921 41,221 Amounts Available for Appropriation 2,353,133 2,353,133 2,357,991 4,858 Charges to Appropriation (Outflows):

General Government 500,000 500,000 - 500,000 Public works 140,332 140,332 90,265 50,067 Capital outlay 1,968,288 1,968,288 - 1,968,288 Total Charges to Appropriation 2,608,620 2,608,620 90,265 2,518,355 Budgetary Fund Balance, June 30 (255,487) $ (255,487) $ 2,267,726 $ 2,523,213 $ City of Lawndale
Budgetary Comparison Schedule
Metro STPL Exchange 2017
For the Fiscal Year Ended June 30, 2025
118
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 4,521 $ 4,521 $ 4,521 $ - $ Resources (Inflows):

Use of money and property 150 150 147 (3)
Amounts Available for Appropriation 4,671 4,671 4,668 (3) Budgetary Fund Balance, June 30 4,671 $ 4,671 $ 4,668 $ (3) $

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119

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

Contents Page
Financial Trends 119
These schedules contain trend information to help the reader understand how the government’s financial performance and wellbeing have changed over time.

Debt Capacity 124
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.

Revenue Capacity 128
These schedules contain trend information to help the reader assess the government’s most significant revenue source, property tax.

Demographic and Economic Information 133
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 141
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 noted, the information in these schedules is derived from the Annual Comprehensive 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)
120
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Governmental Activities: Net investment in capital assets 51,548,100 $ 48,518,613 $ 47,680,378 $ 45,193,728 $ 43,925,644 $ 43,387,317 $ 42,993,707 $ 44,308,151 $ 45,232,399 $ 45,929,475 $ Restricted 22,032,154 20,082,716 16,132,854 11,875,942 17,280,809 16,315,035 14,946,011 13,516,348 13,878,261 12,998,959 Unrestricted 35,928,728 34,351,214 31,922,479 31,695,044 18,105,367 14,361,429 14,601,717 12,280,467 14,736,240 16,089,931 Total governmental activities 109,508,982 $ 102,952,543 $ 95,735,711 $ 88,764,714 $ 79,311,820 $ 74,063,781 $ 72,541,435 $ 70,104,966 $ 73,846,900 $ 75,018,365 $ Business-type Activities: Unrestricted - $ - $ - $ - $ - $ 392,659 $ - $ - $ - $ - $ Total business-type activities - $ - $ - $ - $ - $ 392,659 $ - $ - $ - $ - $ Primary government: Net investment in capital assets 51,548,100 $ 48,518,613 $ 47,680,378 $ 45,193,728 $ 43,925,644 $ 43,387,317 $ 42,993,707 $ 44,308,151 $ 45,232,399 $ 45,929,475 $ Restricted 22,032,154 20,082,716 16,132,854 11,875,942 17,280,809 16,315,035 14,946,011 13,516,348 13,878,261 12,998,959 Unrestricted 35,928,728 34,351,214 31,922,479 31,695,044 18,105,367 14,754,088 14,601,717 12,280,467 14,736,240 16,089,931 $ 102,952,543 109,508,982 $ 95,735,711 $ 88,764,714 $ 79,311,820 $ 74,456,440 $ 72,541,435 $ 70,104,966 $ 73,846,900 $ 75,018,365 $ Fiscal Year Source: City of Lawndale, Finance Department
City of Lawndale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
121
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Expenses: Governmental activities: General government 6,193,711 $ 5,361,245 $ 4,204,502 $ 4,557,959 $ 5,066,050 $ 4,191,071 $ 4,074,964 $ 4,051,141 $ 3,974,826 $ 3,375,499 $ Public safety 7,657,171 7,296,938 6,695,437 6,304,671 6,290,957 6,202,978 5,533,190 5,637,010 5,481,018 5,166,327 Code enforcement and animal control 1,981,573 1,679,994 1,161,300 1,284,905 1,333,971 1,335,008 1,078,957 1,026,693 1,161,697 1,090,955 Housing 2,127,003 1,983,652 1,653,658 1,549,137 1,662,910 695,428 1,478,685 1,344,843 2,342,003 1,808,464 Recreation & community services 2,019,586 2,115,096 850,352 780,739 577,013 2,360,100 1,943,391 1,891,344 2,520,125 1,934,189 Public works 6,201,314 6,280,143 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 9,786 11,559 13,193 14,799 16,309 17,944 19,318 20,624 22,083 23,516 Total governmental activities expenses 26,190,144 24,728,627 19,652,844 19,674,710 19,575,087 19,971,304 18,528,924 19,618,746 18,347,303 17,220,925 Business-type activities: Community Development - - - - - 1,030,325 - - - - Total business-type activities expenses - - - - - 1,030,325 - - - - Total primary government expenses 26,190,144 $ 24,728,627 $ 19,652,844 $ 19,674,710 $ 19,575,087 $ 21,001,629 $ 18,528,924 $ 19,618,746 $ 18,347,303 $ 17,220,925 $ Program revenues: Governmental activities: Charges for services: General government 1,854,767 $ 1,927,478 $ 2,196,050 $ 1,842,754 $ 1,971,238 $ 1,529,005 $ 1,696,097 $ 1,555,791 $ 1,516,849 $ 1,446,541 $ Public safety - - - - - - - - - - Code enforcement and animal control - - - - - - 205,715 200,452 344,716 417,392 Other activities 1,109,725 1,278,711 1,425,446 1,069,946 1,503,744 112,503 961,062 630,519 399,385 334,282 Operating contributions & grants 4,664,303 4,347,867 1,798,424 681,930 1,005,420 495,664 727,699 192,529 289,943 461,251 Capital contributions & grants 4,616,035 4,534,654 6,677,120 4,435,800 4,463,748 5,304,261 3,410,974 3,548,855 3,036,855 7,526,062 Total governmental activities program revenues 12,244,830 12,088,710 12,097,040 8,030,430 8,944,150 7,441,433 7,001,547 6,128,146 5,587,748 10,185,528 Business-type activities: Charges for services Community development - - - - - 742,704 - - - - Total business-type activities program revenues - - - - - 742,704 - - - - Total primary government program revenues 12,244,830 $ 12,088,710 $ 12,097,040 $ 8,030,430 $ 8,944,150 $ 8,184,137 $ 7,001,547 $ 6,128,146 $ 5,587,748 $ 10,185,528 $ Net revenues (expenses): Governmental activities (13,945,314) (12,639,917) (7,555,804) (11,644,280) (10,630,937) (12,529,871) (11,527,377) (13,490,600) (12,759,555) (7,035,397) Business-type activities - - - - - (287,621) - - - - Total primary government net (expenses)/revenues (13,945,314) $ (12,639,917) $ (7,555,804) $ (11,644,280) $ (10,630,937) $ (12,817,492) $ (11,527,377) $ (13,490,600) $ (12,759,555) $ (7,035,397) $ Fiscal Year
Source: City of Lawndale, Finance Department
City of Lawndale
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
122
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 General revenues and other changes in net position: Governmental activities: Taxes: Property tax, levied for general purpose 1,968,279 $ 1,885,994 $ 1,822,569 $ 1,729,089 $ 1,673,195 $ 1,526,604 $ 1,625,047 $ 1,415,740 $ 1,393,299 $ 1,264,229 $ Property taxes in lieu of vehicle license fees 4,848,016 4,616,478 4,378,474 4,123,994 3,947,793 3,787,758 3,615,968 3,425,585 3,259,248 3,124,005 Transient occupancy tax 723,009 779,786 793,777 601,130 712,164 567,341 704,869 692,323 661,089 634,358 Sales tax 7,252,935 7,165,131 7,305,321 7,216,511 6,072,989 5,588,676 3,705,062 2,836,285 3,011,518 3,043,063 Franchise tax 926,556 961,356 932,970 885,280 856,705 801,028 762,816 746,337 719,734 760,317 Utility user tax 2,211,385 2,122,456 2,143,996 1,820,079 1,736,358 1,677,016 1,719,735 1,851,200 1,900,519 1,890,350 Investment income 2,228,177 2,109,161 694,577 (2,233) 337,610 587,119 - - - - Extraordinary items - - - - - - 1,414,559 - - 5,042,253 Other general revenues 343,396 216,387 265,974 744,728 149,503 144,743 530,592 619,487 642,683 765,103 Transfers - - - - - (680,280) - - - - Total governmental activities 20,501,753 19,856,749 18,337,658 17,118,578 15,486,317 14,000,005 14,078,648 11,586,957 11,588,090 16,523,678 Business-type activities: Transfers - - - - - 680,280 - - - - Total business-type activities program revenues - - - - - 680,280 - - - - Total primary government 20,501,753 19,856,749 18,337,658 17,118,578 15,486,317 14,680,285 14,078,648 11,586,957 11,588,090 16,523,678 Change in Net Position: Governmental activities 6,556,439 7,216,832 10,781,854 5,474,298 4,855,380 1,470,134 2,551,271 (1,903,643) (1,171,465) 9,488,281 Business-type activities - - - - - 392,659 - - - - Total primary government change in net position 6,556,439 $ 7,216,832 $ 10,781,854 $ 5,474,298 $ 4,855,380 $ 1,862,793 $ 2,551,271 $ (1,903,643) $ (1,171,465) $ 9,488,281 $ Fiscal Year
City of Lawndale
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
123
Fiscal Year 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 General fund: Nonspendable 171,071 $ 150,248 $ 3,525,445 $ 4,274,138 $ 5,344,922 $ 6,374,027 $ 7,702,065 $ 8,600,651 $ 9,452,893 $ 9,510,896 $ Restricted 1,744,697 2,592,982 - - - - 10,613 10,241 9,769 9,191 Committed - - - - - - 1,400,000 - - - Assigned - - - - - - - - - - Unassigned 36,624,287 32,614,951 27,843,163 22,283,628 16,649,998 10,911,737 7,520,502 6,143,591 5,763,383 6,929,628 Total general fund $ 35,358,181 38,540,055 $ 31,368,608 $ 26,557,766 $ 21,994,920 $ 17,285,764 $ 16,633,180 $ 14,754,483 $ 15,226,045 $ 16,449,715 $ All other governmental funds:

Special revenue funds
Nonspendable - $ - $ 4,357,308 $ 5,177,987 $ - $ - $ - $ - $ - $ - $ Restricted 17,394,688 20,206,984 12,772,347 8,972,546 7,447,169 12,332,824 11,421,078 10,366,294 9,910,179 10,006,156 Unassigned (22,156) (94,377) (109,279) (10,000) (9,960) (216,695) - (524,855) (490,001) (432,709) Capital project funds Restricted 7,277,615 3,558,870 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) (1,643) (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 $ 23,669,834 24,648,504 $ 20,379,239 $ 17,724,926 $ 11,267,914 $ 15,672,337 $ 14,631,579 $ 12,415,988 $ 12,838,726 $ 11,276,097 $ Source: City of Lawndale, Finance Department
City of Lawndale
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
124
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Revenues: Taxes 12,886,481 $ 12,718,464 $ 12,806,915 $ 12,116,086 $ 10,830,784 $ 9,985,785 $ 8,517,529 $ 7,541,885 $ 7,686,159 $ 7,592,317 $ Licenses and permits 727,133 709,505 773,789 833,265 907,757 661,410 767,713 718,379 653,889 582,318 Intergovernmental 14,285,170 13,703,581 13,208,828 9,261,703 9,883,598 9,537,013 7,818,503 7,106,165 7,234,102 6,481,070 Charges for services 1,267,129 1,546,556 1,515,237 1,133,494 1,773,856 199,157 1,300,807 942,048 665,100 659,755 Use of money and property 2,069,030 1,917,612 438,629 (40,512) 336,840 371,356 182,087 122,519 67,986 174,616 Fines and forfeitures 963,073 951,743 1,332,596 936,895 783,944 774,824 794,354 726,336 764,645 726,152 Contributions - - - - - - 174,087 - - - Miscellaneous 231,457 195,031 247,640 713,484 87,355 162,965 64,600 101,060 299,129 458,149 Total Revenues 32,429,473 31,742,492 30,323,634 24,954,415 24,604,134 21,692,510 19,619,680 17,258,392 17,371,010 16,674,377 Expenditures: Current: General government 6,437,966 4,979,150 4,323,788 4,205,802 4,514,649 3,819,954 3,706,741 3,500,810 3,424,105 3,244,705 Public safety 7,634,074 7,545,745 6,691,686 6,300,920 6,290,957 6,202,978 5,533,190 5,637,010 5,481,018 5,166,327 Code enforcement and animal control 1,819,468 1,432,037 1,272,056 1,169,069 1,093,996 1,165,092 1,059,883 1,003,393 1,123,101 1,126,571 Housing 1,445,407 1,283,396 1,129,820 865,868 930,132 172,834 883,209 723,195 1,012,516 1,217,589 Recreation and community services 1,874,374 2,002,728 928,503 689,685 451,574 2,030,710 1,946,575 1,861,734 1,858,596 1,952,337 Public works 4,483,430 4,881,301 4,353,602 4,394,825 4,589,669 4,058,062 3,142,028 4,207,721 2,847,865 3,326,701 Capital outlay 4,627,271 2,293,000 4,109,352 2,329,637 1,031,261 1,862,956 494,571 1,160,043 1,226,729 1,323,492 Debt service: Principal retirement 47,281 45,748 44,266 42,831 41,442 40,099 38,799 37,542 36,325 35,148 Interest and fiscal charges 10,470 12,165 13,806 15,393 16,929 18,415 19,853 21,244 22,590 23,893 Total expenditures 28,379,741 24,475,270 22,866,879 20,014,030 18,960,609 19,371,100 16,824,849 18,152,692 17,032,845 17,416,763 Excess of Revenues Over (Under) Expenditures 4,049,732 7,267,222 7,456,755 4,940,385 5,643,525 2,321,410 2,794,831 (894,300) 338,165 (742,386) Other Financing Sources (Uses): Transfers in 351,917 319,901 319,865 367,733 308,711 290,442 300,427 1,321,009 563,391 178,869 Transfer out (351,917) (319,901) (319,865) (367,733) (308,711) (970,722) (300,427) (1,321,009) (563,391) (178,869) Proceeds from sale of capial assets 110,812 11,510 9,358 - 62,074 1,414,559 - - - Total Other Financing Sources (Uses) 110,812 11,510 9,358 - 62,074 (680,280) 1,414,559 - - - Extraordinary items - - - - - - - - - (2,000,090) Net Change in Fund Balances $ 4,160,544 $ 7,278,732 $ 7,466,113 $ 4,940,385 $ 5,705,599 $ 1,641,130 $ 4,209,390 $ (894,300) $ 338,165 $ (2,742,476) Debt service as a percentage of noncapital expenditures 0.24% 0.26% 0.31% 0.33% 0.33% 0.34% 0.36% 0.35% 0.37% 0.37% Fiscal Year
Source: City of Lawndale, Finance Department
City of Lawndale
Direct and Overlapping Debt
As of June 30, 2025
125
2024-25 Assessed Valuation: $3,175,477,569
OVERLAPPING TAX AND ASSESMENT DEBT:

Metropolitan Water District 17,155,000 $ 0.078% $ 13,381 El Camino Community College District 480,045,366 2.009% 9,644,111 Centinela Valley Union High School District 223,190,827 11.435% 25,521,871 Centinela Valley Union High School District School Facilities Improvement District 213,360,000 12.928% 27,583,181 Hawthorne School District 62,991,440 0.474% 298,579
Lawndale School District 49,225,000 62.224% 30,629,764
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 93,690,887 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations 3,036,637,390 0.151% $ 4,585,322 Los Angeles County Superintendent of Schools General Fund Obligations 2,331,775 0.151% 3,521 Centinela Valley Union High School District Certificates of Participation 4,895,000 21.777% 1,065,984 Hawthorne School District Certificates of Participation 9,730,000 0.474% 46,120 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 5,700,947 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 100.000% 16,365,000 $ 16,365,000 TOTAL DIRECT DEBT 261,251 TOTAL OVERLAPPING DEBT 116,018,085 $ COMBINED TOTAL DEBT (1) $ 116,018,085
(1)
(2) Ratios to 2024-25 Assessed Valuation: Total Direct Debt ($261,251)………………………………………………………….. 0.01% Total Direct and Overlapping Tax and Assessment Debt…………………………………… 2.95% Combined Total Debt………………………………………. 3.65%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,195,187,541):

Total Overlapping Tax and Assessment Debt…………………………………………… 1.37% 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.

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.

Total Debt
06/30/24 % Applicable (1)
City's Share of
Debt 06/30/24
Source: City of Lawndale, Finance Department
City of Lawndale
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(modified accrual basis of accounting)
126
Fiscal
Year
Tax Allocation
Bonds Series
2009 Bond Discount
Tax Allocation
Note
Agreements
With City
Facility And
Lease Note
Total Primary
Government
Percentage of
Personal
Income Per Capita
2016 19,290,000 $ (118,930) $ 1,378,043 $ 23,146,732 $ 635,584 $ 44,331,429 $ 7.37% 1327 2017 19,015,000 (114,697) 1,313,111 22,848,207 599,259 43,660,880 6.93% 1312 2018 18,730,000 (110,461) 1,245,809 22,159,696 561,717 42,586,761 6.17% 1270 2019 18,435,000 (106,227) 1,176,051 21,451,869 522,918 41,479,611 5.67% 1244 2020 18,125,000 (101,993) 1,103,746 20,497,504 482,819 40,107,076 5.22% 1226 2021 17,805,000 (97,759) 1,028,802 19,572,844 441,377 38,750,264 4.87% 1188 2022 17,470,000 (93,525) 951,123 18,473,958 398,546 37,200,102 4.51% 1155 2023 17,120,000 (89,291) 870,608 17,130,490 354,280 35,386,087 4.00% 1149 2024 16,750,000 (85,057) 787,155 15,738,861 308,532 33,499,491 3.62% 1086 2025 16,365,000 (80,823) 700,656 14,151,993 261,251 31,398,077 3.13% 1017 Note:
(1) General bonded debt is debt payable with governmental fund resources. Details regarding the City's outstanding debt can be found in the notes to basic financial statements.

Governmental Activities (1)
Source: City of Lawndale, Finance Department
HDL Coren & Cone
City of Lawndale
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(modified accrual basis of accounting)
127
Fiscal
Year
Tax Allocation
Bonds Series
2009 Bond Discount Total
Percent of
Assessed Value
(2) Per Capita
2016 19,290,000 $ (118,930) $ 19,171,070 $ 0.93% 572
2017 19,015,000 (114,697) 18,900,303 0.88% 566
2018 18,730,000 (110,461) 18,619,539 0.83% 554
2019 18,435,000 (106,227) 18,328,773 0.77% 548
2020 18,125,000 (101,993) 18,023,007 0.72% 549
2021 17,805,000 (97,759) 17,707,241 0.68% 541
2022 17,470,000 (93,525) 17,376,475 0.64% 555
2023 17,120,000 (89,291) 17,030,709 0.59% 551
2024 16,750,000 (85,057) 16,664,943 0.55% 540
2025 16,365,000 (80,823) 16,284,177 0.51% 528
Notes:
(1) Assessed value has been used because actual value of taxable property is not readily available in the State of California.

Source: City of Lawndale, Finance Department
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           
    
        128  
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   
                 
     
     
     
     
     
           
   
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 

 




 

 



 
  12 

 
 
 
 
 
 
 
   
 
 




 


 


    1 


  












 




 







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 

 
 
 

 
 
 




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
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

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 
 




   
  1 
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 
          
                                                       
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  
      1                                                                                                                                                     1                                                                                                                                       1                                                                                                                                          1                                                                                                

         1 City of Lawndale
Principal Employers
Current Year and Ten Years Ago
137
2025 2016
Number of Percent of Total Number of Percent of Total
Employer Employees City Employment Employees City Employment Centinela Valley Union High School District* 587 3.60%
Lawndale Elementary School District* 574 3.52%
Target Store 89 0.55%
Vca Advanced Veterinary Care Center 75 0.46% 66 2.26%
El Super Grocery Store #43** 72 0.44% 90 3.08%
Jones Management Hawthorne Inc 70 0.43%
City of Lawndale 68 0.42% 100 3.38%
Options For Life Inc 50 0.31%
El Pollo Inka 38 0.23%
Smart & Final Extra** 38 0.23%
Source: City 2025 Business License
2016 Source: Previously published ACFR -2016
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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
  
  1                                                                                                                       1 


 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 


 
 

1 


 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 


 
 

1 City of Lawndale
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
142
Function 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 General government 33 42 39 31 26 39 39 39 39 39
Public safety 13 13 13 19 16 15 16 16 16 16
Community development 4 4 3 4 4 4 4 4 5 5
Culture and leisure 18 21 15 11 13 40 40 40 40 40
Total 68 80 70 65 59 98 99 99 100 100
Source: City of Lawndale, Finance Department

ATTACHMENT B
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Lawndale, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 23, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a certain deficiency in internal control, described in the accompanying Schedule of Findings and Responses as items 2025-001 that we consider to be a significant deficiency. -2-
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Findings and Responses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
December 23, 2025
City of Lawndale
Schedule of Findings and Responses
Year Ended June 30, 2025
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2025-001 – Year End Accounting and Reconciliations
Significant Deficiency
Criteria:

All bank accounts should be reconciled monthly, reviewed, and approved in a timely manner.

Other accounts should be reconciled, and year-end closing entries posted to the general ledger in a timely manner.

Condition:

During our audit of the City, we encountered several delays related to the timeliness of the yearend accounting and certain key account reconciliations including bank statements.

Cause:

The City was experiencing significant delays in its accounting and reporting processes due to an understaffed finance department and staff turnover.

Effect:

The City experienced delays in its accounting and reporting process and the completion of its audit.

Recommendation:

We recommend that the City review the administrative responsibilities assigned to each accounting staff so that appropriate time can be spent in each accounting area. This can be achieved by either hiring additional employees in the Finance department or transferring the administrative duties to other employees who have more available time.

Management’s Response:

The Finance department is now fully staffed with qualified individuals. All year-end accounting entries have been made, accounts have been reconciled including the bank statements. The City will continue to maintain reconciliations on a timely manner to ensure discrepancies are identified and resolved timely.

ATTACHMENT C
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-1-
December 23, 2025
To the Honorable Mayor and Members of the City Council
City of Lawndale, California
We have audited the financial statements of the City of Lawndale (the City) as of and for the year ended June 30, 2025, and have issued our report thereon dated December 23, 2025. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated April 15, 2025, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process.

However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the City. We have identified a threat to our independence (preparation of the City’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:

Prior to the issuance of the City’s financial statements, another partner or manager, independent of the engagement, will review the financial statements. -2-
Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which a City can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. The City adopted GASB Statement No. 101, Compensated Absences, and GASB Statement No. 102, Certain Risk Disclosures, during 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the City’s financial statements are:

Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
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Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the City’s financial statements relate to:

The disclosure of fair value of investments in the basic financial statements represents amounts susceptible to market fluctuations.

The disclosure of capital assets (and related accumulated depreciation) in the basic financial statements is based on historical information which could differ from actual useful lives of each capitalized item.

The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions.

Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

The disclosure of leases and subscription liabilities, right-to-use assets, and asset amortization in the basic financial statements is based on certain terms and assumptions in the agreements which could differ from actual amounts.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion unit.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
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Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 23, 2025.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards, we have:

Read the transmittal letter and statistical section and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. Our opinion(s) on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon
Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours,

ATTACHMENT '
Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-1-
Independent Accountant’s Report
To the Honorable City Council
City of Lawndale
Lawndale, California
We have performed the procedures enumerated below (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) on the accompanying Appropriations Limit Worksheet for the year ended June 30, 2025. The City of Lawndale’s (the City) management is responsible for the accompanying Appropriations Limit Worksheet for the year ended June 30, 2025.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities has agreed to and acknowledged that the procedures performed are appropriate to meet for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures. -2-
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA.

We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2025. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City of Lawndale, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

San Bernardino, California
December 23, 2025
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FISCAL YEAR
2024 - 2025
Change in California Per Capita Personal Income 3.62%
Change in the Population for the
City of Lawndale -0.55%
Change in California Per Capita Personal Income
Converted to a Ratio 1.036200
Change in City of Lawndale Population
Converted to a Ratio 0.994500
Calculation of Growth Factor (1.036200 x 0.994500) 1.030501 Fiscal Year 2023 - 2024 Limit $ 41,778,029
Fiscal Year 2024 - 2025 Limit
($41,778,029 x 1.0305) $ 43,052,296
Appropriations limit per resolution 43,052,296 $

APPROPRIATION LIMIT CALCULATION

CITY OF LAWNDALE

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ https://www.lawndalecity.ca.gov
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Hrant Manuelian, Finance Director/City Treasurer SUBJECT: Mid-Year Budget Update for Fiscal Year 2025-2026

BACKGROUND
The Mid-Year report summarizes the status of the City’s FY 25-26 budget at the halfway point of the fiscal year. This mid-year report will focus on revenues and expenditures of the General Fund through December 31, 2025. The focus is on the General Fund since spending is at the discretion of the City Council to support the day to day activities of the City.

The Fiscal Year 2025-2026 budget was adopted by City Council on June 16, 2025, Resolution No. CC-2506- 030.

STAFF REVIEW
The Mid-Year for Fiscal Year 2025–2026 budget update has been prepared to provide City Council with an overall update of the City’s budget with an emphasis on the General Fund as of December 31, 2025. Budget adjustments are being proposed to increase General Fund appropriations.

Updated FY 25-26 General Fund Budget:

LEGAL REVIEW
None.

FISCAL IMPACT
If the City Council approves the proposed budget amendments, General Fund expenditures will increase by $362,451 bringing the total expenditure budget to $21,817,388 for FY 25-26.

RECOMMENDATION
Staff recommends that the City Council approve all recommended budget amendments noted in the MidYear Update for FY 2025-2026.

Attachments
Mid Year Budget Review FY 25-26.pdf

ATTACHMENT A
City of Lawndale
Budget Update
Mid-Year Fiscal Year 2025-26

OVERVIEW
This Mid-Year report summarizes the status of the City’s FY 25-26 budget at the halfway point of the fiscal year.

The data represents budget activities through December 31, 2025.

GENERAL FUND
The General Fund supports the day-to-day activities of the City, which includes general government, public safety, municipal services, and public works. The General Fund activities are primarily tax-supported.

General Fund Financial Condition: As of December 31, General Fund revenues are at 40% and expenditures are at 40% of the amended budget.

GENERAL FUND YTD SUMMARY
Amended Budget Actual YTD Actual % to
Budget
Total Revenue $ 21,101,014 $ 8,847,132 42%
Total Expenditures 21,454,937 8,769,488 41%
The chart below summarizes the budget amendments proposed and the effect on the General Fund Balance for FY 25-26.

As a result of the proposed budget amendments, it is projected that there will be a budget deficit in the General Fund of $716,374. However, it is noted that Community Development has already collected nearly 80% of its FY 25/26 revenue budget and is expected to collect another $600,000 by year end. This would nearly wipe out the budget deficit noted above.

Revenue
The General Fund accounts for roughly half of the City’s total revenue budget. Overall, General Fund revenue as of December 31 was only 0.6% or $57K lower than the same period last fiscal year. The most significant decreases were in Court & Traffic Fines decreased $126K or 32% as compared to the same period in FY 2025.

Other Financing Sources decreased by $123K or 20%. Other Revenue decreased by $87K or 53%, which is mainly due to the sale of the multimedia van for just over $100K. These decreases were partially offset by increases in Sales and Transfer tax of $128K or 11%, increase in Community Service Fees by $26K or 52%, and an increase in Community Development Fees of $106K or 22%.

Below are the budgeted and projected revenue for the fiscal year by source.

Amended Budget Budget Amendments Projected Budget
Total Revenue 21,101,014 $ - $ $ 21,101,014
Total Expenditures 21,454,937 362,451 21,817,388
Budget Surplus/(Deficit) (716,374)

GENERAL FUND PROJECTED BUDGET
City of Lawndale
Budget Update
Mid-Year Fiscal Year 2025-26
• Property Tax: Property taxes have remained fairly constant, and the City is on track to meet the budgeted amount.
• Sales and Use Taxes: Based on current year-to-date revenues and projections provided by HdL our third-party sales tax consultant we expect to meet the original budgeted revenues for the fiscal year. • Utility Users Tax: UUT is a tax imposed on user consumption of utility services, including communication, electric, gas, water, and cable television. Based on actual year-to-date collections, revenue is in line with the budget and the city is on target to meet its budgeted revenues from UUT. • Other Taxes: Franchise Fees, Transient Occupancy Tax (TOT) and Business License revenue are the most significant revenue sources included in Other Tax. Other taxes are in line with budgeted amounts and no further amendments are needed.
• Court and Traffic Fines: Court and Traffic Fines are made up of Parking Fines, DMV Bail and False Alarm fees. For the most part we expect to be in line with the budget. • Other Financing Sources: Other Financing Sources is made up of interest oncome from City investments.

Based on year-to-date revenues the City is on track to meet budgeted amounts. • Other Revenue: Other revenues accounts for all other miscellaneous revenues the City collects. This includes code enforcement tickets, donations, and insurance rebates. These revenues are on track to meet the budgeted amounts.

GENERAL FUND REVENUE BY SOURCE
Revenue Source Amended
Budget Actual YTD FY Estimate
Anticipated
Budget
Variance
Motor Vehicle In-Lieu Tax $ 2,496,788 5,090,417 $ 5,090,417 $ - $ Sales & Use Tax 1,278,596 3,904,751 3,904,751 -
Sales Trans Tax 1,082,631 2,928,563 2,928,563 -
Utility Users Tax 956,321 2,171,500 2,171,500 -
Other Taxes 549,742 2,129,500 2,129,500 -
Property Tax 2,046,773 904,464 2,046,773 -
Court & Traffic Fines 720,000 267,130 720,000 -
Other Financing Sources 880,022 502,833 880,022 -
Charges for Services 218,320 45,910 218,320 -
Use of Money & Property 19,668 - 19,668 -
Licenses & Permits 45,000 9,298 45,000 -
Other Revenue 100,000 75,331 100,000 -
Community Service Fees 96,500 75,342 96,500 -
Community Development Fees 750,000 597,747 750,000 -
Operating Tansfers In - 5,000 0 -
Total General Fund 21,101,014 $ 8,847,132 $ 21,101,014 $ - City of Lawndale
Budget Update
Mid-Year Fiscal Year 2025-26
General Fund Revenue Budget Adjustments
Based on year-to-date collections, the General Fund revenues are at 42% of the budgeted amount. As we are in line with the budgeted revenue there are no revenue amendments needed.

Expenditures
At mid-year General Fund expenditures overall are on target. We are recommending a total expenditure budget amendment of $716,374 in the General Fund. Below is a chart of expenditures by department as of December 31, 2025. We are at 41% of the General Fund budgeted expenditures. Budget adjustments are proposed and described in detail on the following pages.

General Fund Expenditure Budget Adjustments
Based on year-to-date expenditures, the General fund is expected to expend $21,817,388 by fiscal year-end. This is an increase of $413,783 as compared to the original budgeted amount of $21,403,605. To date $51,332 has been approved though budget amendments approved during council meetings. For mid-year we are recommending a budget amendment of $362,451 to the General Fund.

See the below-detailed list of accounts and proposed budget amendments/reclassifications.

Department Amended Budget Actual YTD Actual % to Budget City Council 291,463 $ 99,222 $ 34%
City Attorney 660,000 224,196 34%
City Clerk 350,050 127,635 36%
City Manager 603,501 389,714 65%
Administrative Svcs 301,840 85,074 28%
General Operations 2,309,353 2,003,978 87%
Cable Television 296,571 88,115 30%
Information Systems 242,700 131,999 54%
Finance 798,211 306,735 38%
Police Services 7,812,989 2,615,386 33%
Municipal Services 1,955,589 824,792 42%
Public Works Admin. 1,204,266 320,308 27%
Grounds Maintenance 1,619,917 564,336 35%
Street Maintenance 285,904 138,732 49%
Engineering 105,771 34,081 32%
Community Services 1,307,133 394,499 30%
Special Events 168,472 52,458 31%
Community Developmen 368,227 1,141,207 32%
Total General Fund 21,454,937 $ 8,769,488 $ 41%

GENERAL FUND EXPENDITURES BY DEPARTMENT
City of Lawndale
Budget Update
Mid-Year Fiscal Year 2025-26
Budget Amendments by Department
City Manager – Total amendment of $104,000 is needed, which is due to the payout for the City Manager that resigned in December.

General Operation – Amendment of $3,741 needed to account for the increased wages due to the negotiated MOU that went into effect on July 1.

Information Systems – Amendment of $9,100 needed to account for increased software costs, server backup services, and anti-virus services.

Municipal Services - Amendment needed for the payout of legal settlement for $13,300.

Public Works – Grounds/Streets – Total amendment of $168,960 needed for increased rates to electricity, natural gas, and water. Also, there was a water meter that had been replaced by the water company as it was underreporting water usage.

Community Services – Amendment needed for increased rates and usage as it relates to water.

Community Development - Amendment of $18,250 needed for the payout of the City Manager as part of his salary was charged to Community Development. Also, an amendment of $40,000 is needed for building safety service which is provided by the County as rates have increased as well as workload.

Account Department Description
Increase/
(Decrease)
100-140-501.100 City Manager Salaries- Full Time 104,000 100-140-505.300 City Manager Medicare 500
100-160-501.800 General Operations Sick Leave Buy Back 1,287 100-160-505.200 General Operations PERS Contribution 2,454 100-180-510.400 Information Systems Subscriptions/Publications 9,100 100-300-540.400 Municipal Services Special Expenses 13,300 100-320.515.200 Public Works- Grounds Electricity 42,000 100-320.515.300 Public Works- Grounds Natural Gas 6,860 100-320.515.400 Public Works- Grounds Water 42,500
100-330-515.400 Public Works- Streets Water 77,600
277-510-515.400 Community Services Water 4,600
279-410-501.100 Community Development Salaries- Full Time 18,000 279-410-505.300 Community Development Medicare 250
279-410-530.600 Community Development Building Safety Services 40,000 Total 362,451 $
General Fund Expenditure Budget Amendments
City of Lawndale
Budget Update
Mid-Year Fiscal Year 2025-26
Budget Amendments for Other Funds
American Rescue Plan Act (ARPA) – A budget amendment is needed in ARPA to account 285-190-545.204 – ARPA Rebate Program. This is the remaining budget balance for the Rebate Program, which has available funds.

Community Development Block Grant – CDBG had an approved budget of $37,332 from the County for Senior Activities salary allocations. During the budget prior year estimates were used and therefore a budget of 61666 was allocated to salary for CDBG Senior Activities. An amendment is needed to reduce the CDBG budget and move it the General Fund. The amendment would be as follows:
214-423-501.100 CDBG Senior Activities $-24,334
278-510-501.100 Community Services Senior Activities $24,334

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Vanesa Alvarez, Administrative Assistant
SUBJECT: Report of Attendance at Meetings
No supporting documentation was forwarded to the City Clerk Department for this item.

Vanesa Alvarez, Administrative Assistant
Yvette Palomo, Assistant City Clerk
SUBJECT: Conference with Legal Counsel – Existing Litigation The City Council will conduct a closed session, pursuant to Government Code section 54956.9(d)(1), to discuss existing litigation: Name of Case: City of Lawndale v. LA Investment, LLC (LA Superior Court Case No. 20TRCV00065).

Yvette Palomo, Assistant City Clerk
Vanesa Alvarez, Administrative Assistant
SUBJECT: Public Employee Appointment
The City Council will conduct a closed session, pursuant to Government Code section 54957(b), regarding the appointment of a City Manager.

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ https://www.lawndalecity.ca.gov
DATE: February 2, 2026
TO: Honorable Mayor and City Council
FROM: Raylette Felton, Interim City Manager
PREPARED BY: Yvette Palomo, Assistant City Clerk
SUBJECT: Conference with Legal Counsel – Anticipated Litigation The City Council will conduct a closed session, pursuant to Government Code section 54956.9(d)(4), because the City is considering whether to initiate litigation in one case.

Lawndale City CouncilFebruary 2, 2026

Lawndale City Council
February 2, 2026