Lomita City Council
December 16, 2025

Pipe size (internal
diameter in inches)
Base rate
per lineal
foot
0-4 $0.286
6 0.429
8 0.572
10 0.715
12 0.858
14 1.001
16 1.144
18 1.287
20 1.430
22 1.573
24 1.716
26 1.859
28 2.002
30 2.145
For pipelines with an internal diameter not listed above, the Fee shall be in the same proportion to the Fee of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.

2. For the non-public utility pipelines as shown in Exhibit B the fee is as follows:

The length of the pipe expressed in feet located within the franchised area, rounded to the nearest foot shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision 3 below, in accordance with the following schedule:

Pipe size (internal
diameter in inches)
Base rate
per lineal
foot
0-4 $0.35
2 6 0.410
8 0.730
10 1.150
12 1.650
14 2.240
16 2.930
18 3.710
20 4.580
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22 5.540
24 6.600
26 7.740
28 8.980
30 10.31
0 For pipelines with an internal diameter not listed above, the Fee shall be in the same proportion to the Fee of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.

Notwithstanding the above, in no event shall the annual Franchise Fee for the nonpublic utility pipelines be less than seven thousand five hundred dollars ($7,500).

3. Computation of Payments: Such payments shall be computed from the Effective Date of this Franchise, to and including the date of either actual removal of the facilities or the effective date of a properly approved abandonment "in place" authorized by the City, and until the Grantee shall have fully complied with all the provisions of this Franchise and of all other applicable provisions of law or ordinance relative to such abandonments. All such payments shall be made payable to the City, and shall be supported by the Grantee's verified statement concerning the computation thereof. In the event of installation or abandonment of facilities with the approval of the City as elsewhere in this Franchise provided, or in the event of removal of such facilities by the Grantee, the payments otherwise due to the City or occupancy of the streets by such facilities shall be prorated for the calendar year in which such installation, removal, or abandonment occurs as of the end of the calendar month in which installed, removed, or abandoned.

Provided, however, that the amount of each annual payment shall be computed and revised each calendar year as follows:
a. The base applicable base rate shall be multiplied by the Consumer Price Index for the area, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 100.0. Under no circumstances shall the multiplying factor be less than one.
b. If the United States Department of Labor, Office of Information discontinues the preparation or publication of a Consumer Price Index for the area, and if no translation table prepared by the Department of Labor is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the City shall prescribe a rate of payment which shall, in its judgment, vary from Tuesday, December 16, 2025 Reg CC MTG, Page *126
Ordinance No. 878

the rates specified in this section in approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the City shall be final and conclusive.
c. If the Office of Information shall revise the said Index, the parties hereto shall accept the method of revision or conversion recommended by the Office.

4. Late Payment Penalty: A penalty at the rate of 10% per month or fraction thereof beyond the date any payment is due will be charged. The payment or acceptance of such penalty will not operate to limit the City's ability to exercise any rights hereunder or pursuant to law relating to collection or cancellation and/or forfeiture of this Franchise for late payments or failure to pay by the Grantee.

5. Right of Inspection: The City shall have the right to inspect Grantee's pipeline records relating to its annual report and to audit and recompute any and all amounts payable under this Franchise. Costs of audit shall be borne by Grantee when audits result in an increase of more than five percent of Grantee's annual payments due the City.

Acceptance of any payment shall not be construed as a release, waiver, acquiescence, or accord and satisfaction of any claim the City may have for further or additional sums payable under this Agreement or for the performance of any other obligation hereunder.

6. Granting Fee: In consideration for the granting of this Franchise, and to reimburse the City for its administrative and publication expenses in preparing and approving the Franchise documents, Grantee shall pay the City Fifteen Thousand Dollars ($15,000.00) within thirty (30) days of the date the City Council approves this Franchise.

SECTION 8. EMERGENCY PREPAREDNESS.

A. Equipment and Crews: At all times during the terms of this Franchise, the Grantee shall maintain on a twenty-four (24) hour-a-day basis a fully-operational computer-aided system, such as Supervisory Control and Data Acquisition (SCADA), or a similar system designed for the purpose of controlling and monitoring rates of flow, pressures and fluid characteristics, or provide adequate emergency equipment and a properly trained emergency crew or representatives within a radius of fifteen (15) miles from any facilities installed or maintained pursuant hereto for the purpose of shutting off the pressure and the flow of contents of such facilities in the event of an emergency resulting from any earthquake, act of war, civil disturbance, flood, or other cause.

B. Plans: Within ninety (90) days of the effective date of this Ordinance, Grantee shall submit an emergency preparedness plan. Grantee shall obtain approval from the City Engineer of the plan, and update it to the satisfaction of the City Engineer.

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SECTION 9. REPAIRS.

Grantee shall pay to City on demand the cost of all repairs to City property made necessary by any of the operations of Grantee under the Franchise, provided however that Grantee may make repairs to streets, sidewalks, curbs, and gutters itself at its own cost in accordance with City specifications, if the same can be done without undue inconvenience to the public use of the streets.

SECTION 10. REARRANGEMENT OF FACILITIES.

A. Expense of Grantee

1. If any of the Grantee's facilities, in the discretion of the City, shall endanger the public in the use of the public streets or interfere with or obstruct the use of any street by the public or for public purpose, the City shall have the right to require the Grantee, and the Grantee shall move, alter, or relocate the same (hereinafter called "rearrangement") to avoid such danger interference or obstruction, in conformity with the written notice of the City Engineer, at the Grantee's sole expense.

2. Whenever, during the existence of this Franchise, the City, its Redevelopment Agency, any water, electric, gas, or other utility system now or hereafter owned or operated by the City, or any community facilities or assessment district, or similar agency established by the City, shall change the grade, width, alignment, or location of any street, way, alley, or place or improve any said street in any manner, including but not limited to the laying of any sewer, storm drain, conduits, gas, water, or other pipes, pedestrian tunnels, subway, viaduct or other work of the City (the right to do all • of which is specifically reserved to the City without any admission on its part that it would not otherwise have such rights), the Grantee shall, at its own cost and expense, do any and all things to effect such change in position, or location, in conformity with the written approval of the City Engineer, including without limitation the acceptance of encroachment permits, and the removal or relocation of any facilities installed, if and when made necessary by the determination of the City Engineer.

B. Expense of Others

1. The City shall also have the right to require the Grantee to rearrange any part of the Grantee's facilities for the accommodation of any private person, firm, or corporation. When such rearrangement is done for the accommodation of any private person, firm or corporation, the cost of such rearrangement shall be borne by the accommodated party. Such accommodated party, in advance of such rearrangement, shall deposit with the Grantee funds and shall be required to pay the costs of such rearrangement.

2. Any rearrangement under this Section B shall be accomplished in conformity with the written notice of the City Engineer.

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C. Rearrangement of the Facilities of Others. Nothing in this Franchise contained shall be construed to require the City to move, alter, or relocate any of its facilities upon said streets, at its own expense, for the convenience, accommodation, or necessity of any other public utility, person, firm, or corporation now or hereafter owning a public utility system of any type or nature, to move, alter, or relocate any part of its system upon said streets for the convenience, accommodation, or necessity of the Grantee.

D. Notice. The Grantee shall be given not less than thirty (30) days written notice of any rearrangement of facilities that the Grantee is required to make herein. Such notice shall specify in reasonable detail the work to be done by the Grantee and shall specify a reasonable time for such work to be accomplished, including time allowances for Grantee to secure all requisite governmental permits and approvals covering the work to be accomplished. In the event that the City shall change the provisions of any such notice given to the Grantee, the Grantee shall be given an additional period not less than thirty (30) days to accomplish such work.

SECTION 11. REMOVAL OR ABANDONMENT OF FACILITIES.

At the time of expiration, revocation or termination of this Franchise or the permanent discontinuance of the use of its facilities, or any portion thereof, the Grantee shall, within thirty (30) days thereafter, make a written application to the City Engineer to either: (1) abandon all, or a portion, of such facilities in place, or (2) remove all, or a portion, of such facilities as the City Engineer, in his discretion, shall consider to be appropriate. Such application shall describe the facilities desired to be abandoned by reference to the map or maps required by Article 6 of this Agreement and shall also describe with reasonable accuracy the relative physical condition of such facilities. Thereupon, the City Engineer shall determine whether any abandonment or removal which is thereby proposed maybe effected without detriment to the public interest or under what conditions such proposed abandonment or removal may be safely effected and shall then notify the Grantee, according to such requirements as shall be specified in the City Engineer's order, and within ninety (90) days thereafter, to either:
(a) Remove all or a portion of such facilities, or
(b) Abandon in place all or a portion of such facilities.

If any facilities to be abandoned in place subject to prescribed conditions shall not be abandoned in accordance with all such conditions, then the City Engineer may make additional appropriate orders, including, if he or she deems desirable, an order that the Grantee shall remove all such facilities in accordance with applicable requirements.

A request of the Grantee to abandon in place any facilities shall be deemed an offer of transfer of such facilities to the City and by resolution authorizing Grantee to abandon any facility in place, the City shall succeed to all right, title, and interest of Grantee in said facilities.

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SECTION 12. COMPLETION OF WORK.

In the event that the Grantee fails to commence any work or act and diligently proceed therewith or to complete any such act or work required of the Grantee by the terms of this Franchise within the time limits required hereby, the City may cause such act or work to be completed by the City or, at the election of the City, by a private contractor. The Grantee agrees to pay the City, within ten (10) days after delivery of an itemized bill, the cost of performing such act or work plus an amount equal to ten percent (10%) thereof for overhead. If the Grantee is dissatisfied with any decision made by the City Engineer hereunder or the determination of the cost of any work performed by the City pursuant to this Agreement, it may petition the City Council to review the same within ten (10) days after such decision or determination. The decision of the City Council shall be final and conclusive.

SECTION 13. RECOVERY OF COSTS OF REPAIRS AND UNPAID FEES.

If the Grantee has not paid the City for such fees and expenses incurred by or payable to the City as hereinabove set forth, the City may institute the following collection procedures:

A. The City Engineer shall keep an itemized account of the expenses incurred by the City pursuant hereto, or the fees unpaid by the Grantee. Sixty (60) days after the presentation of the bill to the Grantee therefore, the City Engineer shall prepare and file with the City Clerk a report specifying the work done by the City, or the unpaid fees, the itemized and total cost of the work, a description of the work performed, and the name and address of the Grantee entitled to notice pursuant to this Agreement.

B. Upon receipt of said report, the City Clerk shall present it to the City Council for consideration. The City Council shall fix a time, date, and place for hearing said report, and any protest or objections thereto. The City Clerk shall cause notice of said hearing to be posted once in a newspaper of general circulation in the City, and served by certified mail, postage prepaid, addressed to the Grantee as set forth herein. Such notice shall be given at least ten (10) days prior to the date set for hearing and shall specify the day, hour, and place when the Council will hear and pass upon the City Engineer's report, together with any objections or protests which maybe filed as hereinafter provided.

C. The Grantee may file written protests or objections with the City Clerk at any time prior to the time set for the hearing on the report of the City Engineer. Any such protest or objection must contain a description of the work or unpaid fee in which the Grantee is interested, the grounds of such protest or objection, and the date it was received by the City Clerk. The City Clerk shall present such protest or objection to the City Council at the time set for the hearing, and no other protest or objection shall be considered.

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D. Upon the day and hour fixed for the hearing, the City Council shall hear and pass upon the report of the City Engineer together with any such objections or protests. The Council may make such revision, correction, or modification in the report or charge as it may deem just; and when the Council is satisfied with the correctness of the charge, the report as submitted, or as revised, corrected or modified, together with the charge, shall be confirmed or rejected. The decision of the City Council on the report and the charge, and on all protests or objections, shall be final and conclusive.

E. The City Council may thereupon order that such charge shall be made a personal obligation of the Grantee or assess such charge against the property of the Grantee.

1. If the City Council orders that the charge shall be personal obligation of the Grantee, it shall direct the City Attorney to collect the same on behalf of the City by use of all appropriate legal remedies.

2. If the City Council orders that the charge shall be assessed against the property of the Grantee, it shall confirm the assessment, cause the same to be recorded on the assessment roll, and thereafter, said assessment shall constitute a special assessment against and a lien upon any property held in the State of California by the Grantee.

F. The validity of any assessment made under the provisions of this Franchise shall not be contested in any action or proceeding unless the same is commenced within sixty (60) days after the assessment is placed upon the assessment roll as provided herein. Any appeal from a final judgment in such action or proceeding must be perfected within sixty (60) days after the entry of such judgment.

G. The City Council in its discretion, may determine that assessments in amounts of $500.00 or more shall be payable in not more than five (5) equal annual installments.

The Council's determination to allow payment of such assessments in installments, the number of installments, whether they shall bear interest, and the rate thereof, shall be adopted by a resolution prior to the confirmation of the assessment.

H. Immediately upon its being placed on the assessment roll, the assessment shall be deemed to be complete, the several amounts assessed shall be payable, and the assessments shall be liens against the property of the Grantee in the State of California. The lien shall be subordinate to all existing special assessment liens previously imposed upon the same property, and shall be paramount to all other liens except for state, county, and municipal taxes with which it shall be upon .a Parity. The lien shall continue until the assessment and all interest due and payable thereon are paid. All such assessments remaining unpaid after thirty (30) days from the date of recording on the assessment roll shall become delinquent and shall bear interest at the then current levied amount in judicial judgments from and after said date.

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I. After confirmation of the report, certified copies of the assessment shall be filed with the County Auditor on or before August 10th. The descriptions of the parcels reported shall be those used for the same parcels on the County Assessor's map books for the current year.

J. The amount of the assessment shall be collected at the same time and in the same manner as ordinary municipal taxes are collected; and shall be subject to the same penalties and procedure and sale in case of delinquency as provided for ordinary municipal taxes. All laws applicable to the levy, collection, and enforcement of municipal taxes shall be applicable to such assessment.

K. If the City Council has determined that the assessment shall be paid in installments, each installment and any interest thereon shall be collected in the same manner as ordinary municipal taxes in successive years. If any installment is delinquent, the amount thereof is subject to the same penalties and procedure for sale as provided for ordinary municipal taxes.

L. All money recovered by payment of the charge or assessment or from the sale of the property at foreclosure sale shall be paid to the City Treasurer.

SECTION 14. BOND.

Grantee shall, within fifteen (15) days of the Effective Date of this Franchise, file with the City Clerk, and yearly thereafter, maintain in full force and effect, a bond running to the City in the penal sum of One-Hundred Thousand Dollars ($100,000.00), with a surety to be approved by the City Finance Director, conditioned that Grantee shall, will and truly observe, fulfill, and perform each and every term and condition of this Franchise, and in case of a breach of condition of said Franchise, at the discretion of the City Council, the whole amount of the penal sum therein shall be paid to the City in addition to any damages recoverable by the City and shall be recoverable from the principal and sureties of the bond. If said bond is not so filed, the award of this Franchise will be set aside and any money paid therefore will be forfeited.

Whenever a bond is taken under this Section for any breach of a term or condition of this Franchise, the Grantee must immediately file another bond of like amount and character, and if the Grantee fails to do so within the time set by the City Council, the Council may, by resolution, declare said Franchise automatically forfeited.

Nothing herein shall insulate Grantee from liability in excess of the amount of said bond or shall be construed as a waiver by the City of any remedy at law against the Grantee for any breach of the terms and conditions of this Franchise, or for any damage, loss or injuries suffered by the City in case of any damage, loss or injury suffered by any person, firm, or corporation by reason of any work done or any activity conducted by the Grantee in the exercise of this Franchise.

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Ordinance No. 878

SECTION 15. INSURANCE.

Prior to the beginning of and throughout the duration of the Franchise Agreement, Grantee shall maintain insurance in conformance with the requirements set forth below.

Grantee will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, Grantee agrees to amend, supplement or endorse the existing coverage to do so or to procure insurance coverage to satisfy the requirements.

Grantee acknowledges that the insurance coverage and policy limits set forth in this section constitute the coverage required.

Without limiting Grantee’s indemnification of the City and/or the Indemnified Parties and prior to commencement of the Franchise Agreement, Grantee shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City.

General liability insurance. Grantee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount of $10,000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $10,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Grantee will also carry coverage for Sudden and Accidental pollution coverage in the amount of $10,000,000 per occurrence and in the aggregate.

Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount of $10,000,000 combined single limit for each accident.

Umbrella or excess liability insurance. Contractor shall obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer;
• Should Grantee obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and Tuesday, December 16, 2025 Reg CC MTG, Page *133
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employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

Workers’ compensation insurance. Grantee shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of 1,000,000) for Grantee’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code In addition, Grantee shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

Grantee shall submit to the City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers to the extent of the risks, liabilities, and indemnification obligations assumed by Grantee in the Agreement.

Other provisions or requirements.

Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies to the extent of the risks, liabilities and indemnification obligations assumed by Grantee in the Agreement.

Proof of insurance. Grantee shall provide certificates of insurance and required endorsements to the City as evidence of the insurance coverage required herein.

Insurance certificates and endorsements must be approved by the City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with the City for the contract period and any additional length of time required thereafter.

Duration of coverage. Grantee shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the work hereunder by Grantee, its agents, representatives, employees, subcontractors or subconsultants. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies to the extent of the risks, liabilities, and indemnification obligations assumed by Grantee in the Agreement.

Primary/noncontributing. Coverage provided by Grantee shall be primary to the extent of the risks, liabilities and indemnification obligations assumed by Grantee in the Agreement and any insurance or self-insurance procured or maintained by the City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess Tuesday, December 16, 2025 Reg CC MTG, Page *134
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insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured.

Products/completed operations coverage. If applicable, Products liability coverage shall extend for a minimum of three years (3) after project completion and completed operations coverage for construction agreements shall extend for 3 years from the date of substantial completion of the project or the statute of repose, whichever is longer.

Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The Agency, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall to the extent of the risks, liabilities, and indemnification obligations assumed by Grantee in the Agreement, waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Grantee or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Grantee hereby waives its own right of recovery against the City.

Enforcement of contract provisions (non estoppel). Grantee acknowledges and agrees that any actual or alleged failure on the part of the City to inform Grantee of noncompliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

Notice of cancellation. Grantee agrees to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Grantee’s insurers are unwilling to provide such notice, then Grantee shall have the responsibility of notifying the City promptly in the event of Grantee’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.

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Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Grantee’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability.

The policy(ies) shall not contain any cross-liability exclusions.

The Grantee may satisfy any or all of the insurance requirements under this Section through self-insurance, provided the Grantee is a qualified self-insurer as approved by the State of California or the Grantee submits evidence, reasonably satisfactory to the City's Risk Manager, of sufficient assets to support a self-insurance program. Grantee retains the right to determine what levels of deductibles or self-insured retentions to maintain provided, however, that such deductibles or self-insured retentions are declared to and approved by City's Risk Manager prior to the commencement of this Franchise.

SECTION 16. INDEMNIFICATION BY GRANTEE.

The Grantee shall indemnify, defend with counsel approved by City, protect and hold harmless City, its officers, employees, agents, assigns, and any successor or successors to City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), penalties, attorneys' fees, consultants' and experts' fees, and costs arising directly or indirectly as a result of the Grantee's exercise of the Franchise or operation of the pipeline system, regardless whether any act or omission complained of is authorized, allowed, or prohibited by the Franchise. This indemnity includes, but is not limited to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other, plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous wastes including petroleum and its fractions as defined in the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"; 42 U.S.C. § 9601, et seq.] the Resource Conservation and Recovery Act ["RCRA"; 42 U.S.C. § 6901 et seq.] and California Health & Safety Code § 25280 et seq. at any place where Grantee maintains a pipeline for the transportation of substances and liquids pursuant to this Franchise. The foregoing indemnity is intended to (1) supplement and not replace any other indemnity from any source, and (2) operate as an agreement pursuant to Section 107(e) of CERCLA and California Health & Safety Code Section 25364, to assure, protect, hold harmless and indemnify City from liability.

This indemnity shall not include those claims, actual damages (including, but not limited to, special and consequential damages), penalties, attorneys' fees, consultant's and expert's fees and costs arising directly or indirectly from the active negligence or willful misconduct of the City, its officers, employees, agents, assigns, or successors-in-interest.

SECTION 17. ASSIGNMENT.

A. Grantee shall not transfer, sell, hypothecate, sublet, or assign the Franchise, nor shall any of the rights or privileges therein be hypothecated, leased, assigned, sold or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest or property therein, pass to or vest in any person, except the Grantee, either by act of the Grantee or by operation of law, without the prior consent of the City Council expressed by resolution. Nothing in this Section shall prohibit the Grantee from using its pipelines for the Tuesday, December 16, 2025 Reg CC MTG, Page *136
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purpose of transporting for other persons oil, petroleum, gas, gasoline, or other hydrocarbon substances, but in such event the Grantee shall be responsible to the City for the full performance and observance of the terms and conditions of this Franchise.

B. Any sale, lease, assignment or transfer of this Franchise or the rights or privileges granted hereby, or any of them, without first obtaining the prior written consent of the City Council, expressed by resolution, whether by operation of law or otherwise, shall be null and void.

C. The City shall not unreasonably withhold its consent to a Franchise transfer. For the purpose of determining whether it shall consent to such transfer, City may inquire into the qualifications of the prospective transferee or controlling party, and Grantee shall assist City in any such inquiry. In seeking City's consent to any change of ownership or control, Grantee shall have the responsibility of insuring that transferee completes an application in form and substance reasonably satisfactory to City. An application shall be submitted to City not less than ninety (90) days prior to the date of transfer. The Grantee shall be required to establish that it is in material compliance with its Franchise.

The transferee shall be required to establish that it possesses the qualifications and financial and technical capability to operate and maintain the pipeline and comply with all Franchise requirements for the remainder of the term of the Franchise. If the City finds that the legal, financial, character, technical, and other public interest qualities of the application satisfactory, and that the proposed transferee has the capability to operate and maintain the system and comply with all Franchise requirements for the then remaining term thereof, the City shall consent to the transfer and assignment of the rights and obligations of such Franchise. The City may condition the transfer to insure the transferee is in material compliance, and remains in material compliance with the Franchise. The City may also condition such transfer upon the payment of a transfer fee of Fifteen Thousand Dollars ($15,000.00) to be paid by the transferee to the City.

D. Grantee shall file with the City, within thirty (30) days after the effective date of any sale, lease, assignment, or transfer, certified copies of the duly executed instrument(s) that officially evidence(s) such sale, lease, assignment, or transfer. If any such duly executed instrument is not filed with the City within thirty (30) days after the effective date of such proposed sale, lease, assignment, or transfer, or if any condition to consent by the City has not been met, the City may determine, and then notify Grantee and the proposed transferee, that the sale, lease, assignment, or transfer has no force or effect and/or that the Franchise is forfeited.

E. The provision of this section shall also apply to any change in control of Grantee. "Change of control" shall mean any sale, transfer, merger, or acquisition of more than ten percent (10%) of Grantee's voting stock, or of Grantee's parent corporation(s), by a person or group of persons acting in concert, who own less than 50% of the voting stock.

F. Notwithstanding any other provision of this Section, Grantee shall have the right to assign and transfer the Franchise in its entirety, without consent of City, to a corporation acquiring or owning a portion of the assets of Grantee through consolidation, merger, or Tuesday, December 16, 2025 Reg CC MTG, Page *137
Ordinance No. 878

reorganization, or to a subsidiary of Grantee, or to any person, firm, or corporation having assets of a value in excess of Five Million Dollars ($5,000,000.00). The provisions of this Franchise do not require any such consent and no consent shall be required for any transaction by Grantee by way of mortgage or hypothecation covering all or any part of Grantee's property, which mortgage or hypothecation is for the purpose of securing an indebtedness of Grantee or for the purpose of renewing, extending, refunding, retiring, paying or cancelling, in whole or in part, any such indebtedness.

SECTION 18. RECEIVERSHIP AND FORECLOSURE.

A. Subject to applicable provisions of the Bankruptcy Code, the Franchise shall, at the option of the City, cease and terminate one hundred twenty (120) days after the appointment of a receiver or trustee to take over and conduct the business of the Grantee whether in a receivership, reorganization, bankruptcy or other action or proceeding unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days, or unless:

1. Such receiver or trustee shall have, within one hundred twenty (120) days after his election or appointment, fully complied with all terms of the Franchise and remedied all breaches of • the Franchise or provided a plan for the remedy of such breaches which is satisfactory to the City; and

2. Such receiver or trustee shall, within said one hundred twenty (120) days, execute an agreement duly approved by the court having jurisdiction, whereby such receiver or trustee assumes and agrees to be bound by each and every term, provision, and limitation of the Franchise.

B. Upon the foreclosure or other judicial sale of all or a substantial part of a pipeline system, the Grantee shall notify the City Clerk of such fact, and such notification shall be treated as a notification that a change in ownership of the Grantee has taken place and the provisions of this Chapter governing such changes shall apply.

SECTION 19. WAIVER OF BREACH.

No waiver of the breach of any of the covenants, agreements, restrictions, or conditions of this Franchise by the City shall be construed to be a waiver of any such succeeding breach of the same or other covenants, agreements, restrictions, or conditions of this Franchise.

No delay or omission of the City in exercising the right, power, or remedy herein provided in the event of default shall be construed as a waiver thereof, or acquiescence therein, nor shall the acceptance of any payments made in a manner or at a time other than is herein provided be construed as a waiver of or variation in any of the terms of this Franchise.

Tuesday, December 16, 2025 Reg CC MTG, Page *138
Ordinance No. 878

SECTION 20. DEFAULT.

A. In any event that the Grantee shall default in the performance of any of the terms, covenants, and conditions herein, the City Manager may give written notice to the Grantee of such default. In the event that the Grantee does not commence the work necessary to cure such default within five (5) days after such notice is received or prosecute such work diligently to completion, the City Council may declare this Franchise forfeited by giving written notice thereof to the Grantee, whereupon this Franchise shall be void and the rights of the Grantee hereunder shall terminate and the Grantee shall execute an instrument of surrender and deliver the same to the City.

If the City Council declares this Franchise forfeited, it may thereupon and thereafter exclude the Grantee from further occupancy or use of all City roads authorized under this Franchise. A forfeiture of said Franchise shall not of itself operate to release the bond filed for said Franchise.

Upon declaring a Franchise forfeited, the City Council may elect to take and accept the bond as liquidated damages therefore and pursue any other legal remedy for any damage, loss, or injury suffered by the City as a result of such breach. After forfeiture, the bond shall remain in full force and effect for a period of one (1) year unless exonerated by the City Council. No bond shall be exonerated unless a release is obtained from the City Engineer and is filed with the City Clerk. The release shall state whether all excavations have been back filled, all obstructions removed, and whether the substratum or surface of City roads occupied or used have been placed in good and serviceable condition. Release shall not constitute a waiver of any right or remedy which the City of Lomita may have against the Grantee or any person, firm, or corporation for any damage, loss, or injury suffered by the City as a result of any work or activity performed by the Grantee in the exercise of this Franchise.

B. Cumulative Remedies. No provision herein made for the purpose of securing the enforcement of the terms and conditions of this Franchise shall be deemed an exclusive remedy or to afford the exclusive procedure, for the enforcement of said terms and conditions, but the remedy and procedure herein provided, in addition to those provided by law, shall be deemed to be cumulative.

SECTION 21. SCOPE OF RESERVATION.

Nothing herein contained shall ever be construed so as to exempt the Grantee from compliance with all ordinances of the City now in effect or which may be hereafter adopted which are not inconsistent with the terms of this Franchise. The enumeration herein of specific rights reserved shall not be construed as exclusive, or as limiting the general reservation herein made or as limiting such rights as the City may now or hereafter have in law.

Tuesday, December 16, 2025 Reg CC MTG, Page *139
Ordinance No. 878

SECTION 22. EMINENT DOMAIN.

The franchise granted hereunder shall not in any way or to any extent impair or affect the right of the City to acquire the property of the Grantee hereof either by purchase or through the exercise of the right of eminent domain, and nothing herein contained shall be construed to contract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to the Grantee; nor shall this franchise ever be given any value before any court or other public authority in any proceeding of any character in excess of the cost to the Grantee of the necessary publication and any other sum paid by it to the City therefore at the time of the acquisition thereof.

SECTION 23. AMENDMENT OF FRANCHISE ACT.

In the event the Franchise Act of 1937 ("Franchise Act") is amended by the Legislature or interpreted by a final decision of the Supreme Court of the State of California in a manner that materially affects or materially changes the rights or obligations of the parties, City and Grantee shall meet to negotiate changes to this franchise which may be appropriate in view of such change in law. The parties agree to meet and to negotiate in good faith in a commercially reasonable manner.

SECTION 24. NOTICE.

Any notice required to be given under the terms of this Franchise, the manner of service of which is not specifically provided for, may be served personally or by United States First Class Mail as follows:

A. Upon the City, by addressing a written notice to the City Clerk of the City of Lomita, 24300 Narbonne Avenue, Lomita. California 90717; B. Upon the Grantee, by addressing a written notice to Phillips 66 Company, P.O.

Box 421959, Houston, TX 77242-1959; Attention: Real Estate Services Manager C. For such other address as may from time to time be furnished in writing by one party to the other and depositing said notice in the United States Mail, first class, postage prepaid.

When service of any such notice is made by mail, the time of such notice shall begin upon deposit of same in the United States Mail, first class, postage prepaid.

SECTION 25. SUCCESSORS.

The terms herein shall inure to the benefit of and shall bind, as the case may be, the successors and assigns of the parties hereto, subject, however, to the provisions of Section 17.

Tuesday, December 16, 2025 Reg CC MTG, Page *140
Ordinance No. 878

SECTION 26. INTERPRETATION.

This Franchise is granted upon each and every condition herein contained and shall be strictly construed against Grantee. Nothing shall pass by the Franchise granted hereby to Grantee unless it be granted in plain and unambiguous terms. Each of said conditions is a material and essential condition to the granting of the Franchise.

SECTION 27. FORCE MAJEURE.

The time within which Grantee is obligated hereunder to construct, erect, maintain, operate, repair, renew, change the size of, and remove pipelines or other improvements shall be extended for a period of time equal in duration to, and performance in the meantime shall be excused on account of and for and during the period of any delay caused by strikes, threats of strikes, lockouts, war, threats of war, insurrection, invasion, acts of God, calamities, violent action of the elements, fire, impossibility of obtaining materials, or other things beyond the reasonable control of Grantee.

SECTION 28. ATTORNEYS' FEES.

In the event of legal action between the City and Grantee (or Grantee's bonding companies or insurance carriers) to compel performance of or to recover for breach of any covenant, agreement, or condition contained in this Franchise, or for damages, each party shall pay its own attorneys' fees and costs.

SECTION 29. PUBLICATION EXPENSES
The Grantee of this Franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of this Franchise; said payment to be made within thirty (30) days after the City shall have furnished said Grantee with a written statement of such expenses.

SECTION 30. ACCEPTANCE.

The Franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by the Grantee with the City Clerk of the City within thirty (30) days of the effective date of this Ordinance
SECTION 31 SEVERABILITY.

The City Council hereby declares that the provisions of this Ordinance are severable and if for any reason a court of competent jurisdiction shall hold any sentence, paragraph, or Section of this Ordinance to be invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

Tuesday, December 16, 2025 Reg CC MTG, Page *141
Ordinance No. 878

SECTION 32. CERTIFICATION.

The City Clerk shall certify to the adoption of this ordinance and shall cause the same to be posted as required by law.

SECTION 33. EFFECTIVE DATE.

This ordinance shall take effect thirty (30) days after the date of its passage and adoption; and within fifteen (15) days after its passage and adoption, the City Clerk shall cause a copy of this ordinance to be published in accordance with the provisions of the law. The City Clerk shall certify the adoption of this ordinance.

PASSED, APPROVED AND ADOPTED this 16th day of December 2025. ____________________________
Mark A. Waronek, Mayor
ATTEST:

Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:

Trevor Rusin, City Attorney
Tuesday, December 16, 2025 Reg CC MTG, Page *142
Ordinance No. 878

EXHIBIT A
PHILLIPS 66 COMMON CARRIER UTILITY FACILITIES
Pipeline
Size Name
Length
(Feet) Description Product Type Plat Map
Franchise
Number D4A Number Status
10" "A"Line 289
Walnut Street from Torrance City
Boundary south to Nordman Street Oil CC0024 361 D4A159 Idle 10" "A"Line 1407
Walnut Street from Torrance City
Boundary South to 247th Street East to
Los Angeles County Oil CC0025 361 D4A159 Idle
Tuesday, December 16, 2025 Reg CC MTG, Page *143
Ordinance No. 878

EXHIBIT B
PHILLIPS 66 PROPRIETARY FACILITIES
Pipeline
Size Name
Length
(Feet) Description Product Type Plat Map
Franchise
Number D4A Number Status
6" 175
Lomita Blvd. from east Boundary
Westerly 175 feet Gasoline PP0020 361 D4A159 Idle
_
8 "
"F" Line 2142
Lomita Blvd. from east Boundary to
Walnut Street then North to 246th Street Gasoline PP0020 361 D4A159 Idle 10"
No. 1
TGL 4280
Lomita Blvd. from east Boundary to
Walnut Street then North to 246th Street Gasoline PP0020 361 D4A159 Active 12"
No. 2
TGL 4290
Lomita Blvd. from east Boundary to
Walnut Street then North to 246th Street Gasoline PP0020 361 D4A159 Active 6" 1407
WaInut Street from Torrance City
Boundary South to 247th Street East to
Los Angeles County Gasoline PP0020 361 D4A159 Idle
6" 265
WaInut Street from Torrance City
Boundary South to Nordman Street Gasoline PP0021 362 D4A160 Idle 8" "F" Line 289
Walnut Street from Torrance City
Boundary South to Nordman Street Gasoline PP0022 363 D4A161 Idle Tuesday, December 16, 2025 Reg CC MTG, Page *144
1 TO: City Council
FROM: Andrew Vialpando, City Manager
MEETING DATE: December 16, 2025
SUBJECT: Resolution No. 2025-38 Establishing the Lomita Mayor’s Award of Excellence

RECOMMENDED ACTION
Adopt Resolution No. 2025-38 establishing the Lomita Mayor’s Award of Excellence.

BACKGROUND
The City of Lomita takes pride in recognizing outstanding members of the community for their hard work and dedication towards making the City shine. The Mayor and City Council are committed to celebrating the contributions of our community members and regularly recognize individuals who bring Lomita honor through Certificates of Recognition.

At its meeting on December 2, 2025, Mayor Waronek, with consensus from the City Council, requested that staff develop a Mayor’s Award program to recognize distinguished honorees who should be recognized for their dedication and work that goes above and beyond extraordinary efforts.

DISCUSSION
The purpose of the Mayor’s Award of Excellence is to recognize individuals or groups who have gone to extraordinary lengths to have a significant impact on the lives of Lomita residents, and whose dedication and contributions have left a lasting mark in the community. This award recognizes those who have demonstrated an impactful commitment to service and embraced the values that align with Lomita’s mission to foster a safe community to live, work, and play.

The Mayor’s Award of Excellence will be selected by the sitting Mayor, or designee, and awarded once per year at the last City Council meeting of the outgoing Mayor prior to the annual reorganization of the City Council.

CITY OF LOMITA

CITY COUNCIL REPORT
Item No. 9a
Tuesday, December 16, 2025 Reg CC MTG, Page *145
2 FISCAL IMPACT
The cost to implement the Mayor’s Award of Excellence program is nominal, which will consist of the purchase of a personalized plaque or other small token of appreciation once per year.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No. 3: Community Engagement & Communications - Building trust through open, inclusive communication.

OPTIONS
Approve recommended action.

ATTACHMENTS

1. Resolution No. 2025-38
Approved by:
______________________
Andrew Vialpando
City Manager
Tuesday, December 16, 2025 Reg CC MTG, Page *146
RESOLUTION NO. 2025-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMITA, CALIFORNIA, ESTABLISHING THE LOMITA MAYOR’S AWARD OF

EXCELLENCE

THE CITY COUNCIL OF THE CITY OF LOMITA DOES HEARBY FIND, DETERMINES, AND DECLARES AS FOLLOWS:

WHEREAS, the City is committed to celebrating the contributions of community members and regularly recognize individuals who bring honor to Lomita; and WHEREAS, At its meeting on December 2, 2025, the City Council, requested that the City develop a Mayor’s Award program to recognize distinguished honorees who should be recognized for their dedication and work that goes above and beyond extraordinary efforts; and
WHEREAS, the adoption of this program will further contribute to the City of Lomita's dedication to recognizing extraordinary service in the community.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lomita as follows:

SECTION 1. The purpose of the Mayor’s Award of Excellence is to recognize individuals or groups who have gone to extraordinary lengths to have a significant impact on the lives of Lomita residents, and whose dedication and contributions have left a lasting mark in the community. This award recognizes those who have demonstrated an impactful commitment to service and embraced the values that align with Lomita’s mission to foster a safe community to live, work, and play.

SECTION 2. The Mayor’s Award of Excellence will be selected by the sitting Mayor, or designee, and awarded once per year at the last City Council meeting of the outgoing Mayor prior to the annual reorganization of the City Council.

SECTION 3. The City Clerk shall certify to the adoption of this resolution and certify this record to be a full, true and correct copy of the action taken.

PASSED, APPROVED AND ADOPTED, this 16th day of December 2025. [Signatures on the following page]
Tuesday, December 16, 2025 Reg CC MTG, Page *147
Resolution No. 2025-38

_________________________
Mark Waronek, Mayor
ATTEST:
______________________________
Kathleen Horn Gregory, City Clerk
APPROVED AS TO FORM:
______________________________
Trevor Rusin, City Attorney
Tuesday, December 16, 2025 Reg CC MTG, Page *148
1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Susan Kamada, Deputy City Manager/Administrative Services Director
MEETING DATE: December 16, 2025
SUBJECT: Acceptance of the City's Audit Reports and Annual Comprehensive Financial Report for the Fiscal Year 2024-2025

RECOMMENDED ACTION
Receive and file the Fiscal Year 2024-2025 Annual Comprehensive Financial Report (ACFR) and the Single Audit Report on the Schedule of Expenditures of Federal Awards.

BACKGROUND
Attached is the City of Lomita’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025. These reports are in full compliance with the most recent financial reporting model developed by the Governmental Accounting Standards Board (GASB) Statement No. 34, Generally Accepted Accounting Principles (GAAP), and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

The goal of the annual audit is to provide reasonable assurance that the City’s financial statements are free of material misstatement. The most recent financial reporting model is intended to improve financial accountability by adding significant information not previously available in local government financial statements. The City’s implementation of the most recent model enables the City Council and residents of Lomita to become more aware of the City’s financial condition and the information contained in its annual financial statements.

DISCUSSION
During the year ended June 30, 2025, the City adopted Statement on Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences. The primary objective of this statement is to better meet the information needs of financial statement

CITY OF LOMITA

CITY COUNCIL REPORT
Item No. 9b
Tuesday, December 16, 2025 Reg CC MTG, Page *149
2 users by updating the recognition and measurement guidance for compensated absences. The cumulative effect of adopting this standard was not significant, hence, no restatement of beginning net position was required.

The City also, adopted GASB Statement No. 102, Certain Risk Exposures during the current year, however, its adoption did not have a significant effect on the financial statements. Statements can be found in Note 1 of the City’s Annual Comprehensive Financial Report.

The City’s independent auditor, Gruber and Lopez, Inc., found no “material misstatements” or “reportable conditions” during the audit.

The City has once again submitted the ACFR for consideration for the Certificate of Achievement for Excellence in Financial Reporting to the Government Finance Officers Association (GFOA). To receive this award, a government agency must publish an easily readable and efficiently organized comprehensive annual financial report. If the City receives the Certificate of Achievement as expected, this will be the 23rd consecutive year that the City has received this award. While this effort was coordinated by the Administrative Services Department, it required the cooperation and participation of all City departments. We would like to thank the Mayor and members of the City Council for their support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Below are the financial highlights of the Annual Comprehensive Financial Report:
➢ The City ended Fiscal Year 2024-2025 with a total net position $73,306,687. Of this amount, $15,687,028 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors within fund-specific guidelines. ➢ As of the close of business of the current fiscal year, the City of Lomita’s governmental funds reported a combined ending balance of $28,531,621. ➢ Property Taxes, Sales Tax, Motor Vehicle-in-Lieu Fees, Refuse Taxes, Business License Taxes, Franchise Taxes, and Transient Occupancy Taxes financed approximately 83% of all governmental activities for the fiscal year.

OPTIONS
Receive and file the Fiscal Year 2024-2025 Annual Comprehensive Financial Report (ACFR) and the Single Audit Report on the Schedule of Expenditures of Federal Awards

FISCAL IMPACT
None.

Tuesday, December 16, 2025 Reg CC MTG, Page *150
3 ATTACHMENTS

1. Audit Communication Letter

2. Fiscal Year 2024-2025 Annual Comprehensive Financial Report

3. Single Audit Report
Approved by:
_______
Andrew Vialpando
City Manager
Prepared by:
__________________________
Susan Kamada
Deputy City Manager/Administrative Services Director
Tuesday, December 16, 2025 Reg CC MTG, Page *151

CITY OF LOMITA
Lomita, California
Report on Communication
With Those Charged with Governance
June 30, 2025
Tuesday, December 16, 2025 Reg CC MTG, Page *152

CITY OF LOMITA
Lomita, California
Report On Communication
With Those Charged With Governance
June 30, 2025
INDEX
PAGE
REPORT ON COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 1 - 3

Tuesday, December 16, 2025 Reg CC MTG, Page *153
1 438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com

City of Lomita
Lomita, California
To the Honorable Mayor and City Council:

We have audited the financial statements of the government activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Lomita, California (City) for the year ended June 30, 2025, and have issued our report thereon dated December 11, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the engagement contract dated August 31, 2025.

Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practice
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City adopted Statement on Governmental Accounting Standards (GASB Statement) No. 101-Compensated Absences and Statement No. 102 – Certain Risk Exposures.

The adoption of the GASB Nos. 101 and 102 did not significantly impact the City. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s 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 significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of capitalizing certain infrastructure assets that prolong its’ useful life (as opposed to classifying as routine maintenance expense) and depreciation expense on capital assets. We have evaluated the key factors and assumptions used to estimate the capitalization of infrastructure assets and useful lives on depreciation expense in determining that they are reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net pension liability and net OPEB liability and their allocation to various funds. We have evaluated the key factors and assumptions used to estimate the net pension liability and its allocation to various funds of the City in determining that they are reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the present value of lease payable and right-to-use lease asset.

Tuesday, December 16, 2025 Reg CC MTG, Page *154
2 City of Lomita
Honorable Mayor and City Council
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was:
 The disclosure of Contingencies in Note 11 to the financial statements concerning potential claims against the City for possible disallowed costs or noncompliance with certain grantor restrictions. As of the date of this letter, Management is not aware of any disallowed costs or noncompliance with grantor restrictions.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We noted no significant adjustments as a result of audit procedures. We were not aware of any significant uncorrected misstatements.

Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 11, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Lomita’s auditors.

However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Tuesday, December 16, 2025 Reg CC MTG, Page *155
3 City of Lomita
Honorable Mayor and City Council
Other Matters
We applied certain limited procedures to City of Lomita, which is required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as described in the table of contents in the financial statements, which accompany the financial statements but are not RSI.

With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the supplementary information as described in the table of contents in the financial statements, which accompany the financial statements but are not RSI.

We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

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

GRUBER AND LOPEZ, INC.

Newport Beach, California
December 11, 2025
Gruber and Lopez, Inc.

Tuesday, December 16, 2025 Reg CC MTG, Page *156
Annual Comprehensive
Financial Report
Year Ended June 30, 2025
Tuesday, December 16, 2025 Reg CC MTG, Page *157

CITY OF LOMITA,

CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2025
Prepared by: The Administrative Services Department
Susan Kamada, Administrative Services Director
Tuesday, December 16, 2025 Reg CC MTG, Page *158

CITY OF LOMITA
Annual Comprehensive Financial Report
Year Ended June 30, 2025

TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:

Transmittal Letter i
List of Principal Officials vii
Organization Charts viii
GFOA Certificate of Achievement for Excellence in Financial Reporting iv FINANCIAL SECTION:

Independent Auditors’ Report 1
Management’s Discussion and Analysis
(Required Supplementary Information) 4
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements:

Government Funds:

Balance Sheet 16
Reconciliation of the Balance Sheet of Governmental Funds to Statement of Net Position 17
Statement of Revenues, Expenditures and Changes in Fund Balances 18 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities 19 Proprietary Fund:

Statement of Net Position 20
Statement of Revenues, Expenses and Changes in Net Position 21 Statement of Cash Flows 22
Fiduciary Fund:

Statement of Fiduciary Net Position – Private Purpose Trust Funds 23 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds 24 Notes to the Financial Statements 25
Tuesday, December 16, 2025 Reg CC MTG, Page *159

CITY OF LOMITA
Annual Comprehensive Financial Report
Year Ended June 30, 2025

TABLE OF CONTENTS, (CONTINUED)
Page
FINANCIAL SECTION, (CONTINUED):

Required Supplementary Information
Schedule of Proportionate Share of Net Pension Liability and Related Ratios 60 Schedule of Plan Contributions 62
Schedule of Changes in the Net OPEB Liability and Related Ratios 64 Budgetary Comparison Schedule – Major Funds:

General Fund 66
Measure R Highway Special Revenue Fund 67
Proposition C Special Revenue Fund 68
Notes to Required Supplementary Information 69

Supplementary Schedules
Non-Major Government Funds:

Combining Balance Sheet 70
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 Non-Major Funds:

Budgetary Comparison Schedules 76

Fiduciary Funds:

Combining Statements of Net Position 93
Combining Statements of Changes in Net Position 94
Tuesday, December 16, 2025 Reg CC MTG, Page *160

CITY OF LOMITA
Annual Comprehensive Financial Report
Year Ended June 30, 2025

TABLE OF CONTENTS, (CONTINUED)
Page
STATISTICAL SECTION:

Net Position by Component – Last Ten Fiscal Years 95
Changes in Net Position – Last Ten Fiscal Years 97
Fund Balances of Governmental Funds – Last ten Fiscal Years 101 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years 103 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 105
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 106 Principal Property Owners – Current Year and Prior Year 107 Property Tax Levies and Collections – Last Ten Fiscal Years 108 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years 109 Legal Debt Margin Information 111
Pledged Revenue Coverage 113
Direct and Overlapping Debt – Current Year 114
Top 25 Sales Tax Producers 115
Demographic and Economic Statistics – Last Ten Calendar Years 116 Principle Employers – Current Year and Nine Years Ago 117 Full-time and Part-time City Employees by Function – Last Ten Fiscal Years 118 Operating Indicators by Function – Last Ten Fiscal Years 119 Capital Asset Statistics by Function – Last Ten Fiscal Years 120 Water Sold by Type of Customer – Last Ten Fiscal Years 121 Water Rates – Last Ten Fiscal Years 122
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 123 Tuesday, December 16, 2025 Reg CC MTG, Page *161

CITY COUNCIL ADMINISTRATION
MARK A. WARONEK CITY MANAGER

CINDY SEGAWA ANDREW VIALPANDO

JAMES GAZELEY

BILL UPHOFF

BARRY WAITE

CITY OF LOMITA
CITY HALL OFFICES • 24300 NARBONNE AVENUE, LOMITA • CALIFORNIA 90717 (310) 325-7110 • FAX (310) 325-4024 • www.lomita.com/cityhall i
December 16, 2025
Honorable Mayor,
Members of the City Council,
and Citizens of Lomita

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR 2024-2025

LETTER OF TRANSMITTAL

It is with great pleasure that we present to you the City of Lomita’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025. This report complies with the most recent financial reporting model developed by the Governmental Accounting Standards Board (GASB) Statement 34 and Generally Accepted Accounting Principles (GAAP). The most recent financial reporting model is intended to improve financial accountability by adding significant information not previously available in local government financial statements. The City’s implementation of the most recent model enables the City Council and residents of Lomita to become more aware of the City’s financial condition and the information contained in its annual financial statements.

The ACFR was prepared by the Administrative Services Department in conformity with GAAP and has been audited in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed Certified Public Accountants. Our audit firm, Gruber and Lopez, Inc., is registered with the California State Board of Accountancy and, as a result, the City’s auditors follow the same required rigor and quality control standards of all firms who are registered with the State. The report contains management’s representation of the finances of the City. Consequently, responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, it is our belief that the enclosed information is accurate in all material respects and is reported in a manner designed to present fairly the financial position of the City. All disclosures necessary to enable an understanding of the City’s financial activities have been included.

The ACFR includes the financial activity for all funds of the City. The City provides its residents a wide range of municipal services either directly or through contractual arrangements including public safety, planning, building, public works, water utility, engineering, parks and recreation, and general management.

In addition to the fund-by-fund financial information presented in the City’s financial statements, also included are government-wide financial statements. The government-wide financial statements, required by GASB 34, include a Statement of Net Position that provides the total net equity of the City including its infrastructure assets. The Statement of Activities illustrates the cost of providing government services.

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These statements have been prepared using the accrual basis of accounting versus the modified accrual method used in the fund financial statements, as required by GASB 34.

The most recent reporting model includes an emphasis on the City’s major funds as shown in the Governmental Fund Statements. These most recent statements combined with other financial information are further described in a narrative section called Management’s Discussion and Analysis (MD&A). The MD&A provides financial highlights and interprets the financial reports by analyzing trends and by explaining changes, fluctuations and variances in the financial data. The MD&A is intended to disclose any known significant events or decisions that affect the financial condition of the City.

During the fiscal year ending June 30, 2025, the City adopted Statement on Governmental Accounting Standards (GASB Statement) No. 101, Compensated Absences. The primary objective of this statement is to establish a single comprehensive model for government entities to recognize and measure compensated absences, such as paid time off, vacation and sick leave.

The City, also, adopted GASB Statement No. 102, Certain Risk Exposures which requires state and local governments to disclose significant financial vulnerabilities from concentrations and constraints when an associated event makes them vulnerable to substantial impact within 12 months of financial statement issuance. Its adoption did not have a significant effect on the City’s financial statements.

PROFILE OF THE GOVERNMENT
The City of Lomita, California, was founded in 1907 and incorporated on June 30, 1964, as a General Law City under the laws of the State of California. The City of Lomita is located 26 miles south of downtown Los Angeles and is bordered by the City of Torrance to its north and west limits, the City of Los Angeles to the east, and the City of Rolling Hills Estates to the south. Southeast of Lomita is the City of Rancho Palos Verdes and unincorporated County land. The City’s total land area is 1,196.8 acres, or 1.97 square miles. As of 2025, the City’s population is 20,407.

The City operates under the Council-Manager form of government. The City Council is comprised of five members elected by district for four-year terms, with Districts 2 and 4 on the same cycle, and 1, 3, and 5 on a separate cycle, with elections every two years. The Mayor and Mayor Pro-Tem are selected by the City Council from among its members to serve a one-year term. The City Council serves as the legislative and policymaking body of the City, enacting all laws and directing such actions as are required to provide for the general welfare of the community. As a “Contract City,” the City provides most of its municipal services, such as legal and public safety services, waste collection, street sweeping and others through contracts with other agencies or organizations. The City of Lomita contracts with a private firm for its legal services. It contracts with the Los Angeles County Sheriff’s Department for law enforcement services. Fire protection services are provided by the Los Angeles County Fire Department. The Lomita Public Library is administered by Los Angeles County. Building and safety services are also provided by the County. There are currently six City parks in Lomita including Lomita Park.

The City Manager, appointed by the City Council, serves as the Chief Executive Officer and is responsible to the City Council for the administration of all City affairs and the implementation of all policies established by the City Council. The City Attorney serves under contract to the City and is also appointed by the City Council.

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The Assistant City Manager is appointed by and reports to the City Manager. All other department directors are also appointed by the City Manager and report to the City Manager.

LOCAL ECONOMIC CONDITIONS AND OUTLOOK
The City of Lomita is comprised of single and multi-family homes, condominiums, and apartments with a mixture of retail, light industrial and service entities providing a tax base for the City. Property Taxes, Sales and Use Taxes, Motor Vehicle-in-Lieu Fees, Refuse Taxes, Business License Taxes, Franchise Taxes, and Transient Occupancy Taxes financed approximately 83 percent of all governmental activities for the fiscal year.

As of June 30, 2025, the City’s unemployment rate was 3.0 percent, which compares favorably to 5.9 percent for Los Angeles County and 5.8 percent for the State of California. The City’s three largest employers are Lomita Post-Acute Care Center, Target, and Kaiser Permanente, and they continue to be stable employers.

The City adopted a balanced biennial budget for Fiscal Years 2024-2026 using a conservative approach to forecast revenues and maintain expenditures. The City’s sales taxes, vehicle license fees, building & safety fees, and business license tax continue to be strong revenues sources. This, along with other revenue sources, continue to support the City in accomplishing its financial and infrastructure improvement goals.

The budget continues to maintain public safety services and infrastructure projects at a high level of importance.

Though hopeful that the economy continues to steadily grow, the City expects long term revenues to remain stable while expenditures are expected to steadily grow. The City will remain conservative in its revenue forecasts, contain costs as much as possible while maintaining essential services for the community. We will continue to explore ways to stimulate the local economy by vigorously pursuing economic development and housing opportunities and developing projects and programs that support the continued growth of our community.

LONG-TERM FINANCIAL PLANNING AND MAJOR INITIATIVES
In 2022, the City adopted a five-year Capital Improvement Program 2022-2027, and continues to work through the projects listed as funding is available. An annual review of this report is an integral part of the budget process. This is a plan for short and long-term development, improvement, maintenance, and acquisition of infrastructure assets City-wide. Current projects include facility improvements; information technology upgrades; engineering studies; major street repairs; storm water best management programs; water system upgrades including water main, water meter, water valves and service line replacements, and ongoing upgrades to our water facilities.

In 2023-2024, the City completed its 2024 Pavement Management Plan. A major element of the work was to complete a comprehensive assessment of the existing street network and Pavement Management Program database used by the City. The citywide weighted average Pavement Condition Index (PCI) is 74.8, a PCI range of Very Good. Lomita strives to maintain and improve its rating, by devoting considerable resources to the maintenance and improvement of its streets and roads. In June 2024, when the City adopted its biennial budget for Fiscal Years 2024-2026, it adopted Capital Improvement Projects (CIP) budgets of $14.3 million and $5.8 million, respectively. This year, 69 percent or $5.1 million, of the fiscal year 2025- Tuesday, December 16, 2025 Reg CC MTG, Page *164
CITY HALL OFFICES • 24300 NARBONNE AVENUE, LOMITA • CALIFORNIA 90717 (310) 325-7110 • FAX (310) 325-4024 • www.lomita.com/cityhall iv
2026 CIP budget is allocated for street-related projects such as the street rehabilitation of Narbonne Ave (south) and various streets in city Zone G, a three-phase project.

During the fiscal year of 2024-2025, the Cypress Water Production Facility, which provides water service through a blend of imported and locally produced ground water, remained offline. Water service continues to be provided to the City’s residents through 100% imported water; this transition continues to result in significant, short-term increases in the City’s costs to provide water service. The upgrade to the facility, including a secondary Granular Activated Carbon filtration system to remove benzene and improve the aesthetic qualities of the City’s groundwater and a new well pump, is nearing completion. Bringing the facility back on-line requires a few remaining work items, including a Variable Frequency Drive motor controller to operate the well and multiple valves at the reservoir. The project is scheduled to be completed in winter of 2025.

The City continues to implement water rate structures, adopted in 2022, and will continue capital improvements, including pipeline replacements and upsizing, in an effort to be proactive in reducing service delivery costs and determining future revenue requirements to meet the operational needs of the water system while building and maintaining reserves for capital projects and its debt service obligations.

The City has also completed the Sanitary Sewer System Master Plan or Sewer Master Plan (SWP). One of the primary objectives of the SWP is to develop a hydraulic model of the wastewater collection system. The development of this hydraulic model helped the City identify CIP projects for the sewer line segments that are capacity deficient under future buildout conditions or that require excessive maintenance. Projects resulting from the recommendations in this plan will be added to the City’s Capital Improvement Plan as part of annual budget adoption process for consideration by the City Council.

RELEVANT FINANCIAL POLICIES
The City’s finances continue to be positively impacted by actual revenues which exceed conservative estimates, business license rates which are revised annually to reflect the changes in the consumer price index, and the updated valuation of the Infrastructure Assets which accurately reflect the true value of the City’s assets.

Internal Controls
City management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or other misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely to be achieved. The valuation of the costs and benefits requires estimates and judgments by management.

As a recipient of Federal, State and County financial resources, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to annual evaluation by its independent auditors and periodic evaluation by management of the City.

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Budgetary Controls
In addition to internal controls, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Proprietary Funds (including Internal Service and Enterprise Funds) and Fiduciary Funds are included in the annual appropriated budget.

The budget is arranged by department, function and fund and presented to the City Council by the City Manager and Administrative Services Director. The budget is then adopted bi-annually by the City Council prior to the beginning of the fiscal year and serves as the foundation for the City's financial planning and control. The budget is reviewed at mid-year and necessary adjustments are made to ensure that expenditures are not outpacing anticipated revenues.

The City maintains an encumbrance accounting system as an additional technique of accomplishing budgetary control. As demonstrated by the statements and schedules included in the financial section of this report, the City has enhanced its responsibility for sound financial management. The legal level of control of which expenditures cannot exceed appropriations is at the functional level. The City Council is informed of expenditures over appropriations and such amounts are informally approved as a part of the bi-monthly review of the demand warrants.

Annual Audit
Gruber & Lopez, Inc., was selected by the City to audit the City's financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ending June 30, 2025, are free of material misstatement. As part of the City's annual audit, reviews are made to determine the adequacy of the internal control structure as well as to determine that the City has complied with applicable laws and regulations. The independent auditor concluded there was a basis for rendering an unmodified opinion and the City’s financial statements are fairly presented in conformity with Generally Accepted Accounting Principles and GASB 34 requirements. The independent auditor’s report is presented as the first component of the financial section of this report

AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Lomita for its ACFR for the fiscal year ended June 30, 2024. This was the twenty-first consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the City had to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable program requirements.

A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only.

However, we believe that our current ACFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

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CITY HALL OFFICES • 24300 NARBONNE AVENUE, LOMITA • CALIFORNIA 90717 (310) 325-7110 • FAX (310) 325-4024 • www.lomita.com/cityhall vi
The preparation and publication of this report would not have been possible without the support of the City Council and collaborative assistance of the Department Heads and staff in all City departments. It is important to recognize the dedicated employees of the Administrative Services Department. Their professional expertise and unwavering commitment to excellence is constantly manifested in the quality of the City’s financial records and reporting. Appreciation is also expressed to the audit staff of Gruber & Lopez, Inc., for their advice and assistance in the preparation of this report.

Respectfully submitted,
Andrew Vialpando Susan Kamada
City Manager Administrative Services Director
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CITY OF LOMITA

LIST OF CITY OFFICIALS

ELECTED OFFICIALS
Mayor Mark A. Waronek
Mayor Pro Tem Cindy Segawa
Council Member James Gazeley

Council Member Bill Uphoff
Council Member Barry Waite

CITY STAFF
City Manager Andrew Vialpando
Assistant City Manager Lina Hernandez
City Attorney Trevor Rusin, Best, Best & Krieger
Administrative Services Director Susan Kamada
Community & Economic
Development Director Adrian Fernandez
Parks & Recreation Director Emma Kelley
Public Works Director Andres Gonzalez

vii
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Senior Management
Analyst
Administrative
Analyst
Community Safety
Manager
Community Safety
Supervisor
City
Clerk
Deputy
City Clerk
PT Office
Assistant
PT Community
Safety Ofiicers
Assistant City
Manager
Parks & Recreation
Director
Administrative
Assistant
Recreation
Supervisor
Recreation
Coordinator
Recreation
Supervisor
PT Assistant Rec
Coordinator
PT Assistant Rec
Coordinator
PT Recreation
Leaders
PT Recreation
Leaders (Museum)

CITY OF LOMITA ORGANIZATIONAL CHART
Facilities
Supervisor
Recreation
Supervisor
PT Assistant Rec
Coordinator
Recreation
Supervisor
Recreation
Coordinator
Recreation
Coordinator
Recreation
Supervisor
PT Assistant Rec
Coordinator
PT Assistant Rec
Coordinator
Recreation
Supervisor
Recreation
Coordinator
PT Assistant Rec
Coordinator
Senior Civil
Engineer
Associate
Engineer
Engineering
Technician
PT Engineering
Intern
Water Service Tech
II (2)
Water Service
Tech I
Public Works
Director
Management
Analyst
Water Qlty &
Environmentalist
Specialist
Public Works
Operations
Manager
PW Lead Worker
-Streets / Trees
Maintenance Worker
II (2)
Maintenance Worker
I (2)
PT Maintenance Aide
PW Lead Worker
-Parks
Maintenance Worker
II (2)
Maintenance Worker
I (2)
PT Maintenance Aide
Facilities
Supervisor
Lead Worker
-Facilities
Maintenance Worker II
PT Maintenance Aide
PW Lead Worker
-Water Treatment
Water Treatment
Plant Operator (2)
Water Systems
Superintendant
PW Lead Worker
-Water Distribution
Community & Econ
Development
Director
Associate
Planner
Assistant
Planner
PT Planning
Intern
Code Enforcement
Supervisor
Code Enforcement
Officer
Management
Assistant
City Manager
Parks & Recreation
Director
Recreation
Supervisor
Recreation
Coordinator
Recreation
Supervisor
PT Assistant Rec
Coordinators
Administrative
Assistant
PT Recreation
Leaders
PT Assistant Rec
Coordinators
PT Recreation
Leaders
PT Recreation
Leaders (Museum)
Citizens of
Lomita
City Council
•Planning Commission (7)
•Public Safety & Traffic Commission
(5)
•Parks & Recreation Commission (5)
City Attorney
CM & Directors (6)
Full-Time Employees
Part-Time Employees
Deputy City
Manager / Admin
Services Director
Senior
Accountant
Accounting
Assistant
Accountant
(Payroll)
Human Resources
Manager
PT Office
Assistant
Human Resources
Analyst
Accounting
Technician
Accounting
Assistant
Executive
Assistant
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lomita
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
iv
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1 438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – Fax (714) 901-0024 – www.gruber-inc.com Honorable Mayor and City Council
City of Lomita, California
Independent Auditors’ Report
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Lomita, California, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City of Lomita, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activity, each major fund, and the aggregate remaining fund information of the City of Lomita, California, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 of Lomita, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted 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.

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City Council
City of Lomita, California
2 In performing an audit in accordance with generally accepted 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 of Lomita, California’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 of Lomita, California’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of proportionate share of the net pension liability and the schedules of contributions for the CalPERS miscellaneous pension plan, the schedule of changes in the net other postemployment benefit (OPEB) liability (asset) and related ratios, and the budgetary comparison schedules for the General Fund and Major Special Revenue Fund, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, 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 RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lomita’s basic financial statements. The combining and individual fund financial statements and schedules, and financial data schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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City Council
City of Lomita, California
3 Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules, and financial data schedules, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our 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 11, 2025, on our consideration of the City of Lomita’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Lomita’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Lomita’s internal control over financial reporting and compliance.

Gruber and Lopez, Inc.

Newport Beach, California
December 11, 2025
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4 CITY OF LOMITA
Management’s Discussion and Analysis
The following discussion and analysis of the City of Lomita’s financial statements provides an overview of the financial activities for the fiscal year ended June 30, 2025. This document should be read in conjunction with the accompanying transmittal letter which can be found on pages i-v of this report, and the basic financial statements.

FINANCIAL HIGHLIGHTS
 The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the 2024-2025 fiscal year by $73,306,687 (total net position). Of this amount, $15,687,028 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.
 The City’s total net position increased $6,246,000. Net position of governmental activities increased $4,754,925 and net position of business-type activities increased $1,491,075.  As of the close of the 2024-2025 fiscal year, the City’s governmental funds reported combined fund balances of $28,531,621, an increase of $2,768,278 in comparison to the prior year. General Fund increased by $2,365,196, the Measure R and Proposition C Special Revenue Funds increased by $106,537 and $239,352, respectively, and the Street Improvements Capital Project Fund increased by $177,868.  At the end of the 2024-2025 fiscal year, fund balance (the total of the committed, assigned, unassigned components of fund balance) for the General Fund was $13,838,224, or approximately 83% of total General Fund expenditures.

USING THE ANNUAL REPORT
The annual comprehensive financial reports are comprised of three components: 1) government-wide financial statements provide information about the activities of the City as a whole, except for its fiduciary activities, 2) fund financial statements illustrate how City services were financed, as well as, what remains for future spending; these statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds, and 3) notes to the financial statements. This report also contains other supplementary information.

GOVERNMENT-WIDE FINANCIAL STATEMENTS
The Statement of Net Position and the Statement of Activities report information about the City as a whole.

These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting method used by most private sector companies. All of the current fiscal year’s revenues and expenses are considered regardless of when cash is received or paid.

These two statements report on the City’s net position and changes in the net position. Net position, the difference between assets and liabilities, may serve over time as a useful indicator of a government’s financial position. The City’s change in net position increased during Fiscal Year 2024-2025 despite ongoing fiscal challenges. Consideration should also be given to other non-financial factors, such as the condition of the City’s infrastructure, to assess the overall health of the City.

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CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
5 The City’s basic services fall into two categories: governmental and business-type activities. Governmental activities are activities generally financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services provided by the City. These activities are usually reported in enterprise funds. The City’s only business-type activity is its Water utility.

The Statement of Net position and the Statement of Activities present information about governmental and business-type activities, including General Government, Public Safety, Public Works, Community Development, Cultural and Recreation and Water Enterprise. General revenues such as Property Taxes, Sales Taxes, Motor Vehicle-in-Lieu Fees, Refuse Taxes, Business License Taxes, Franchise Taxes, and Transient Occupancy Taxes financed approximately 82% of all governmental activities for the fiscal year.

The government-wide financial statements can be found on pages 13-15 of this report.

FUND FINANCIAL STATEMENTS
The Fund Financial Statements provide specific detailed information about the most significant funds. Included are the General Fund, Measure R Highway Special Revenue Fund, and Water Enterprise Fund. Smaller specific funds are reported collectively as Other Governmental Funds. Some funds are required to be established by State law; however, the City establishes many other funds to help control and manage costs for specific purposes or to demonstrate compliance with legal requirements for using certain taxes, grants, and other monies. The City currently has three types of funds – governmental, proprietary, and fiduciary funds.

Governmental Funds Most of the City’s basic services are reported under governmental funds. These financial statements focus on how money flows into and out of governmental funds and the balances left at fiscal yearend that are available for future appropriation. These funds are reported using the modified accrual accounting method. Under this method, revenues are recognized in the accounting period in which they become measurable and available to finance expenses of the current fiscal period while expenses are recognized in the accounting period in which the liability is incurred. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

The Governmental Fund statements provide a detailed view of the City’s general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or less financial resources that can be spent in the near future to finance the City’s programs. The relationship (or difference) between governmental activities (reported in the Statement of Net position and Statement of Activities) and Governmental Funds are described in the reconciliation at the bottom of the fund financial statements.

The basic governmental fund financial statements can be found on pages 16-19 of this report.

Proprietary Funds This category includes enterprise and internal service funds. The City’s water operations are reflected in the Water Enterprise Fund. The cost of allocating vehicle and equipment purchases to all applicable departments citywide is represented in the Equipment Replacement and Park Equipment Replacement Fund.

The basic proprietary fund financial statements can be found on pages 20-22.

Tuesday, December 16, 2025 Reg CC MTG, Page *175

CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
6 Fiduciary Funds This fund type reflects monies held on behalf of outside entities such as the Railroad Museum Foundation, and Tom Rico Memorial Fund. These funds do not belong to the City and are not used for city government activities. Fiduciary activities are reported in separate fiduciary fund financial statements. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used exclusively for their intended purpose.

The basic fiduciary fund financial statements can be found on pages 23-24.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 25-59.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information. This required supplementary information can be found on pages 60-68 of this report.

The combining statements in connection with non-major governmental funds are presented on pages 69-76.

Individual fund schedules can be found on pages 77-95.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The analysis focuses on the net position and changes in net position of the City’s governmental and businesstype activities. At fiscal year-end, the City is able to report positive balances in all three categories of net position.

Tuesday, December 16, 2025 Reg CC MTG, Page *176

CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
7 Net Position
The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $73,306,687 (net position).
 $49,465,298 (67%) of net position reflects investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), net of related debt. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.  $8,154,361 (11%) of net position is subject to external restrictions on how they may be used.  $15,687,028 (22%) of unrestricted net position may be used to meet the ongoing obligations to citizens and creditors which include the net OPEB and Pension obligations.

The City’s overall net position increased $6,246,000 from the prior year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities:

Governmental Activities. The net position for governmental activities increased $4,754,925 during the 2024- 2025 fiscal year for an ending balance of $44,078,966. General revenues for governmental activities increased from the prior year by $1,306,113, or approximately 6.5%. The overall increase is primarily property taxes, sales & use tax, vehicle license fees, business license tax, and building & safety fees.

Expenses increased by $1,090,340 from the prior year, or approximately 7%, primarily due to increased spending on contractual services and professional services, in community development and public works. The increase in contractual expenses is attributed to increased developmental activity within the City. Professional expenses have increased due to temporary engagement of consultants to support public work operations.

Additional information can be found in the statement of activities (Primary Government, pages 14-15).

Tuesday, December 16, 2025 Reg CC MTG, Page *177

CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
8 Business-type Activities. The net position increased $1,491,075 during the 2024-2025 fiscal year for an ending balance of $29,227,721. The Water Enterprise business charges for water services to offset its operation expenses. Total revenues increased $998,812, or approximately 12% from the prior year. In comparison to the prior fiscal year, the charges for services increased by $995,867, or 14% due, in part, to an increase in investment income, grant revenues and water usage. Related business-type activity expenses decreased during the fiscal year by $162,003, or 2% compared to the previous fiscal year; this decrease in expenses is a result of temporary salary savings rather than true operational savings. Expenses related to cost of water, contractual services, and repairs & maintenance continue to grow.
2025 2024 2025 2024 2025 2024
Revenues:

Program Revenues:

Charges for services 3,469,524 $ 3,126,795 $ 7,968,377 $ 6,972,510 $ 11,437,901 $ 10,099,305 $ Operating grants and contributions 3,751,045 3,441,655 - - 3,751,045 3,441,655 Capital grants and contributions 559,585 548,502 - - 559,585 548,502 General Revenues:

Property taxes 2,256,481 2,093,294 - - 2,256,481 2,093,294 Sales and other taxes 7,140,455 6,849,423 - - 7,140,455 6,849,423 Investment income and miscellaneous 4,253,192 4,064,500 1,425,067 1,422,122 5,678,259 5,486,622 Total Revenues: 21,430,282 20,124,169 9,393,444 8,394,632 30,823,726 28,518,801 Expenses:

General government 5,177,981 4,663,391 - - 5,177,981 4,663,391 Public safety 4,955,004 5,010,478 - - 4,955,004 5,010,478 Public works 1,829,339 1,868,583 - - 1,829,339 1,868,583 Community development 1,626,446 1,371,669 - - 1,626,446 1,371,669 Community services 792,565 836,331 - - 792,565 836,331
Cultural and recreation 2,294,040 1,826,108 - - 2,294,040 1,826,108 Interest - 8,475 - - - 8,475
Water Enterprise operations - 7,902,369 - 8,064,372 7,902,369 8,064,372 Total Expenses: 16,675,375 15,585,035 7,902,369 8,064,372 24,577,744 23,649,407 Increase (decrease) in Net Position 4,754,907 4,539,134 1,491,075 330,260 6,245,982 4,869,394 before other revenues and transfers
Transfers 0 0 0 0
Net position - beginning of year 39,324,041 34,784,907 27,736,646 27,406,386 67,060,687 62,191,293 Net position - end of year $ 39,324,041 44,078,948 $ 29,227,721 $ 27,736,646 $ 73,306,669 $ 67,060,687 $

CITY OF LOMITA'S CHANGES IN NET POSITION
Governmental Activities Business -type Activities TOTAL Tuesday, December 16, 2025 Reg CC MTG, Page *178

CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
9 FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS
Governmental Funds. On June 30, 2025, the City’s governmental funds reported combined fund balances of $28,531,621, an increase of $2,768,277 in comparison with the prior year. $1,850,066 or approximately 6.5% of this amount constitutes an unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either non-spendable, restricted, committed, or assigned to indicate that it is: (1) not in spendable form $37,755; (2) restricted for particular purposes $5,949,145; (3) committed for particular purposes $5,680,280; or (4) assigned for particular purposes $15,014,375.

The general fund is the chief operating fund of the City. At the end of the 2024-2025 fiscal year, the unassigned fund balance of the general fund was $1,850,066, while the total fund balance increased by $2,365,196 to $13,838,224; the overall increase is primarily due to investment income, vehicle license fees, business license tax, franchise taxes and grant revenues. As a measure of the general fund’s liquidity, it may be useful to compare both the unassigned fund balance and the total fund balance to total general fund expenditures.

Unassigned fund balance represents approximately 13% of total general fund balance, while total fund balance represents approximately 83% of the total general fund expenditures.

The Measure R and Proposition C major Special Revenue Funds, and the major Street Improvement Capital Projects fund reported fund balances of $0, $3,187,070, and $2,983,040, and reported net changes in fund balances of $106,537, $239,352, and $177,868, respectively.

Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Water Enterprise at the end of the fiscal year was $4,241,742. The total increase in net position was $1,491,075; this increase is a result of increased grant revenues, and water usage.

GENERAL FUND BUDGETARY HIGHLIGHTS
The revised budget estimated an increase in General Fund net change in fund balance of ($812,243); however, the actual change in fund balance was an increase of $2,365,196 to arrive at a total ending General Fund Balance of $13,838,224. The overall difference in the original and final amended budgeted expenditures for the General Fund was a decrease of ($518,875) or 3%. The final amended budgeted revenues increased from the original budgeted revenues by $587,304 or 4%.

Revenues: In the General Fund, actual revenues were more than the amount budgeted by $857,547 or 5%.

Revenues in Licenses and permits had a significant increase over budget by $322,449 or 22%, largely due to building & safety fees, which were $279,356, or nearly 33%, higher than budgeted.

Expenditures: In the General Fund, actual expenditures were less than budgeted by $2,319,892 or 14%. Actual revenues over actual departmental expenditures for the General Fund were $3,177,439, not including transfers out.

Tuesday, December 16, 2025 Reg CC MTG, Page *179

CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
10 CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The assets include a broad range of capital resources including land, buildings, equipment, furniture, vehicles, etc. Also included are public domain (infrastructure) capital assets consisting of certain improvements such as roads, streets, sidewalks, buildings, storm drains and the water main system. At the end of fiscal year 2024- 2025, the City’s net capital assets total $54,369,183 in a broad range of resources as listed below:

Major capital asset events, during the 2024-2025 fiscal year, included the following:
 Completed phase one (1) of four (4) phases for the reconstruction of streets in zone G.  Design for water main replacements in zone G continues.  Pre-construction completed on the Narbonne South Pipe Replacement Project; construction of project begins in 2025-2026 fiscal year.
 Citywide School Loading Zone Study to address traffic and safety around schools continues.  Completed emergency repair of depression along Lomita Blvd.

Additional information on the City’s capital assets can be found in Note 5 on pages 43-45 of this report.

Long-term Debt
The City currently has several long-term obligations. The City issued a bond for the first time in its history in fiscal year 2008-09 for the construction of the new Cypress Street Reservoir, and other potential capital improvements to the City’s aged water system. During fiscal year 2022, the City refinanced the water revenue bonds to take advantage of lower interest rates. Other long-term liabilities include net pension liability, compensated absences, and other post-employment benefits (OPEB). 2025 2024 2025 2024 2025 2024
Non-depreciable assets:

Land $ 4,993,906 $ 4,993,906 $ 70,675 $ 70,675 $ 5,064,581 $ 5,064,581 Street trees 1,650,378 1,650,378 - 1,650,378 - $ 1,650,378 Construction in progress 3,001,921 910,050 3,459,032 4,497,964 6,460,953 $ 5,408,014 Total non-depreciable assets 9,646,205 7,554,334 3,529,707 4,568,639 13,175,912 12,122,973 Capital assets, being depreciated:

Buildings/structures and improvements 803,556 984,517 - 803,556 - 984,517 Equipment and furniture 751,757 695,744 227,000 74,874 978,757 770,618 Right-to-Use - Lease Equipment 3,825 11,471 - - 3,825 11,471 Right-to-Use - Subscription 59,321 141,235 - 59,321 - 141,235 Vehicles 385,318 336,956 290,159 77,961 675,477 414,917 Infrastructure 12,898,113 13,608,626 25,774,222 22,359,259 38,672,335 35,967,885 Total depreciable assets (net) 14,901,890 15,778,549 26,291,381 22,512,094 41,193,271 38,290,643 Total capital assets $ 23,332,883 24,548,095 $ 29,821,088 $ 27,080,733 $ 54,369,183 $ 50,413,616 $ Governmental Activities Business-Type Activities Total

CITY OF LOMITA'S CAPITAL ASSETS
(Net of depreciation)
Tuesday, December 16, 2025 Reg CC MTG, Page *180

CITY OF LOMITA
Management’s Discussion and Analysis (Continued)
11 State statutes limit the amount of general obligation debt a governmental entity may issue to 3.75 percent of the average full valuation. The current debt limitation for the City is $122,401,514, which is significantly in excess of the City’s outstanding general obligation debt of $4,903,885.

Additional information can be found in the notes section of this report (Note 6- Long-Term Debt. pages 45- 46).

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The following economic factors currently affect the City and were considered when developing the 2024-2025 fiscal year budget:
 The performance of national, state, and primarily local economies and its impact on major revenue sources for the city of Lomita.
 The impact of inflation on the costs increase of labor, operating and maintenance materials and capital assets.
 The City’s Capital Improvement Plan (CIP) projects, aging infrastructure, and financing source options.  The City’s current unemployment rate of 3.0 percent is 2.8 percent lower than the State’s unemployment rate of 5.8 percent. It is a 0.9 percent increase from the prior fiscal year.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Administrative Services Department, 24300 Narbonne Avenue, Lomita, California 90717, or call (310) 325-7110. 2025 2024 2025 2024 2025 2024
Net pension liability 7,609,809 $ 7,549,852 $ 2,996,342$ 3,111,624$ $ 10,606,151 $ 10,661,476 OPEB 5,591,323 5,143,750 - - 5,591,323 5,143,750
Lease payable 3,783 7,528 - - 3,783 7,528
Subscription leases payable 64,993 104,710 - - 64,993 104,710 Compensated absences 579,682 650,688 273,674 411,497 853,356 1,062,185 COP Bonds payable, net of premium - 4,835,109 - 5,182,731 4,835,109 5,182,731 $ 13,456,528 13,849,590 $ 8,105,125 $ 8,705,852 $ 21,954,715 $ 22,162,380 $ Governmental Activities Business-type Activities Total

CITY OF LOMITA'S OUTSTANDING DEBT

Tuesday, December 16, 2025 Reg CC MTG, Page *181
12 This page intentionally left blank
Tuesday, December 16, 2025 Reg CC MTG, Page *182

BASIC FINANCIAL STATEMENTS
Tuesday, December 16, 2025 Reg CC MTG, Page *183

GOVERNMENT WIDE FINANCIAL STATEMENTS
Tuesday, December 16, 2025 Reg CC MTG, Page *184
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:

Cash and investments (note 2) 32,677,537 $ 5,650,019 38,327,556 Receivable:

Accounts 313,458 1,848,884 2,162,342
Taxes 142 25,021 25,163
Interest 44,854 - 44,854
Due from other governmental entities 1,892,400 - 1,892,400 Inventories 21,976 169,008 190,984
Prepaid items 15,779 - 15,779
Total current assets 34,966,146 7,692,932 42,659,078
Noncurrent assets:

Capital assets (note 5):

Non-depreciable 9,646,205 3,529,707 13,175,912
Depreciable, net 14,901,890 26,291,381 41,193,271
Total capital assets 24,548,095 29,821,088 54,369,183
Total noncurrent assets 24,548,095 29,821,088 54,369,183 Total assets 37,514,020 59,514,241 97,028,261

DEFERRED OUTFLOWS OF RESOURCES
Pensions (note 8) 2,253,553 887,330 3,140,883
OPEB (note 9) 1,234,501 - 1,234,501
Total deferred outflows of resources 887,330 3,488,054 4,375,384

LIABILITIES
Current liabilities:

Accounts payable 2,379,958 826,218 3,206,176
Accrued salaries and benefits 206,934 120,038 326,972
Interest payable - 30,071 30,071
Deposits payable 204,234 1,000 205,234
OPEB (note 9) 276,731 - 276,731
Long-term - due within one year (note 6) 162,870 411,531 574,401 Total current liabilities 3,230,727 1,388,858 4,619,585 Noncurrent liabilities:

Pension Liability (note 8) 7,609,809 2,996,342 10,606,151 OPEB (note 9) 5,314,592 - 5,314,592
Long-term - due in more than one year (note 6) 485,588 4,697,252 5,182,840 Total noncurrent liabilities 13,409,989 7,693,594 21,103,583 Total liabilities 9,082,452 16,640,716 25,723,168

DEFERRED INFLOWS OF RESOURCES
Pensions (note 8) 231,561 91,177 322,738
OPEB (note 9) 2,051,052 - 2,051,052
Total deferred inflows of resources 91,177 2,282,613 2,373,790

NET POSITION
Net investment in capital assets 24,479,319 24,985,979 49,465,298 Restricted for:

Community development and services 2,286,201 - 2,286,201 Public safety 6,757 - 6,757
Public works 5,012,635 - 5,012,635
Cultural and recreation 848,768 - 848,768
Total restricted 8,154,361 - 8,154,361
Unrestricted 11,445,286 4,241,742 15,687,028
Total net position $ 29,227,721 44,078,966 73,306,687

CITY OF LOMITA
Statement of Net Position
June 30, 2025
Primary Government
See accompanying notes to the basic financial statements. 13 Tuesday, December 16, 2025 Reg CC MTG, Page *185
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:

Governmental activities:

General government 5,177,981 $ 60,000 - - 60,000
Public safety 4,955,004 546,381 194,876 - 741,257
Public works 1,829,339 2,571,111 306,749 559,585 3,437,445 Community development 1,626,446 1,932,276 - - 1,932,276 Community services 792,565 355,876 955,058 - 1,310,934
Cultural and recreation 268,242 2,294,040 30,000 - 298,242 Total governmental activities 16,675,375 3,469,524 3,751,045 559,585 7,780,154 Business-type activities:

Water 7,902,369 7,968,377 - - 7,968,377
Total business-type activities 7,902,369 7,968,377 - - 7,968,377 Total primary government 24,577,744 $ 11,437,901 3,751,045 559,585 15,748,531 General revenues:

Taxes:

Property taxes, net
Sales taxes
Business license tax
Franchise taxes
Refuse taxes
Transient occupancy taxes
Other taxes
Total taxes
Motor vehicle in-lieu, unrestricted
Investment income (loss)
Other revenues

Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year

CITY OF LOMITA
Statement of Activities
For the Year Ended June 30, 2025
See accompanying notes to the basic financial statements. 14 Functions/Programs
Program Revenues
Tuesday, December 16, 2025 Reg CC MTG, Page *186
Governmental Business-Type
Activities Activities Total
- (5,117,981) (5,117,981)
(4,213,747) - (4,213,747)
1,608,106 - 1,608,106
305,830 - 305,830
518,369 - 518,369
- (1,995,798) (1,995,798)
- (8,895,221) (8,895,221)
- 66,008 66,008
- 66,008 66,008
66,008 (8,895,221) (8,829,213)
- 2,256,481 2,256,481
4,975,507 - 4,975,507
923,996 - 923,996
383,813 - 383,813
578,806 - 578,806
180,036 - 180,036
- 98,297 98,297
9,396,936 - 9,396,936
3,115,093 - 3,115,093
1,128,599 193,222 1,321,821
1,231,845 9,518 1,241,363
1,425,067 13,650,146 15,075,213
4,754,925 1,491,075 6,246,000
27,736,646 39,324,041 67,060,687
$ 29,227,721 44,078,966 73,306,687
15 Primary Government
Net (Expense) Revenue and Changes in Net Position
Tuesday, December 16, 2025 Reg CC MTG, Page *187

FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
Tuesday, December 16, 2025 Reg CC MTG, Page *188

GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund - This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.

Measure R Highway Fund – Used to account for street improvement projects on a cost reimbursement basis.

Proposition C Fund – Used to account for Proposition C local return revenues received from County sales tax dollars.

Street Improvement Fund – Used to account for the acquisition, construction and improvement of street improvements and infrastructure. The projects are funded by transfers from the General Fund.

Tuesday, December 16, 2025 Reg CC MTG, Page *189
Capital
Projects
Fund Non-major Total
General Measure R Proposition Street Governmental Governmental Fund Highway C Improvements Funds Funds
ASSETS
Cash and investments (note 2) 13,946,581 $ - 3,450,325 2,998,639 8,782,365 29,177,910 Receivables:

Accounts 251,879 - - - 61,579 313,458
Taxes - - - - 142 142
Interest 44,854 - - - - 44,854
Due from other governments 1,403,691 191,559 - - 297,150 1,892,400 Due from other funds (note 3) 17,446 - - - - 17,446
Inventory 21,976 - - - - 21,976
Prepaid items - 2,294 - - 15,779 13,485
Total assets $ 191,559 15,688,721 3,450,325 2,998,639 9,154,721 31,483,965

LIABILITIES
Accounts payable 1,473,420 $ - 263,255 15,599 579,897 2,332,171 Accrued liabilities 201,720 - - - 5,214 206,934
Deposits payable 175,357 - - - 28,877 204,234
Due to other funds (note 3) - - - - 17,446 17,446
Total liabilities - 1,850,497 263,255 631,434 15,599 2,760,785

DEFERRED IN FLOWS

OF RESOURCES
Unavailable revenue - - 191,559 - - 191,559
Total deferred in flows
of resources - - 191,559 - - 191,559

FUND BALANCES
Nonspendable 24,270 - - - 13,485 37,755
Restricted - - - - 5,949,145 5,949,145
Committed 85,744 - 3,187,070 - 2,407,466 5,680,280
Assigned 11,878,144 - - 2,983,040 153,191 15,014,375
Unassigned - 1,850,066 - - - 1,850,066
Total fund balances - 13,838,224 2,983,040 3,187,070 8,523,287 28,531,621 Total liabilities, deferred
inflows and fund balances $ 191,559 15,688,721 3,450,325 2,998,639 9,154,721 31,483,965 Governmental Funds
June 30, 2025
Balance Sheet

CITY OF LOMITA
Special
Revenue Funds
See accompanying notes to the basic financial statements. 16 Tuesday, December 16, 2025 Reg CC MTG, Page *190
Fund balances of governmental funds $ 28,531,621
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the governmental funds balance sheet. Excluding the internal service funds capital assets which are reported below, capital assets were adjusted as follows:
- Capital assets 42,611,073
- Accumulated depreciation (18,616,855)
Certain revenues were not available to pay for current-period expenditures and, therefore, were deferred in funds. 191,559
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the government-wide statement of net position. 4,005,717
Deferred outflows related to contributions made after the actuarial measurement date for the net pension liability. 2,253,553
Deferred inflows related to unrecognized actuarial gains and losses for the net pension liability. (231,561)
Proportionate share of net pension liability has not been included in governmental fund activity. (7,609,809)
Long-term liabilities (including compensated absences, lease payable, and OPEB liability) were not due and payable in the current period. Therefore, they were not reported in the governmental funds balance sheet. This amount excludes long-term liabilities reported in Internal Service funds. (7,056,332)
Net position of governmental activities 44,078,966 $

CITY OF LOMITA
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
See accompanying notes to the basic financial statements. 17 Tuesday, December 16, 2025 Reg CC MTG, Page *191
Capital
Projects
Fund Non-major Total
General Measure R Proposition Street Governmental Governmental Fund Highway C Improvements Funds Funds
Revenues:

Taxes and assessments 9,396,937 $ - - - 600,416 9,997,353 Intergovernmental 3,464,004 52,407 437,289 - 2,530,311 6,484,011 Licenses and permits 1,812,449 - - - 84,395 1,896,844
Charges for services - - - - 4,567 4,567
Fines and forfeitures 584,451 - - - - 584,451
Investment income 1,081,214 - 103,020 84,003 252,385 1,520,622 Rental income 240,450 - - - 351,309 591,759
Other revenue - 128,989 - - 174,319 303,308
Total revenues 16,708,494 52,407 540,309 84,003 3,997,702 21,382,915 Expenditures:

Current:

General government 4,717,609 - - - - 4,717,609
Community development 1,454,844 - - - - 1,454,844
Community services - - - - 735,451 735,451
Public works 1,012,203 - - - 1,063,194 2,075,397
Public safety 4,945,450 - - - - 4,945,450
Culture and recreation 1,986,424 - - - 97,007 2,083,431 Capital outlay - 33,310 300,957 981,749 586,439 1,902,455 Total expenditures 14,149,840 - 300,957 2,877,401 586,439 17,914,637 Excess (deficiency)
of revenues over
(under) expenditures 2,558,654 52,407 239,352 (502,436) 1,120,301 3,468,278 Other financing sources (uses):

Transfers in (note 4) 1,336,976 54,130 - 680,304 96,000 2,167,410 Transfers out (note 4) (1,530,434) - - - (1,336,976) (2,867,410) Total other financing
sources (uses) (193,458) 54,130 - (1,240,976) 680,304 (700,000) Net change in
fund balances 2,365,196 106,537 239,352 177,868 (120,675) 2,768,278 Fund balances (deficit),
beginning of year (106,537) 11,473,028 2,947,718 2,805,172 8,643,962 25,763,343 Fund balances,
end of year 13,838,224 $ - 2,983,040 3,187,070 8,523,287 28,531,621 Statement of Revenues, Expenditures, and Changes in Fund Balances

CITY OF LOMITA
Governmental Funds
For the Year Ended June 30, 2025
Special
Revenue Funds
See accompanying notes to the basic financial statements. 18 Tuesday, December 16, 2025 Reg CC MTG, Page *192
Changes in fund balances of governmental funds $ 2,768,278 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 are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year, net of disposals and internal service fund activity.

Capital outlay 2,358,768
Depreciation expense (720,964)
To record as an expense the net change in compensated absences in the statement of activities. 71,006
To record as an expense the net change in lease payable in the statement of activities. 43,462 To record as an expense the net change in other post employment benefits liability in the statement of activities. 69,909
Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (485,658)
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue (expense) of the internal service funds are reported with governmental activities. 650,124 Change in net position of governmental activities 4,754,925 $ 19 CITY OF LOMITA
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-Wide Statement of Activities For the Year Ended June 30, 2025
See accompanying notes to financial statements.

Tuesday, December 16, 2025 Reg CC MTG, Page *193

PROPRIETARY FUND FINANCIAL STATEMENTS
Water Enterprise Fund - This fund is used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing water utility services to the general public on a continuing basis be financed or recovered primarily through user charges.

Internal Service Funds - This fund is used to account for the City's cost of maintenance replacing the City's capital assets. City departments are the primary users of these services and are charged a fee on a cost reimbursement basis.

Tuesday, December 16, 2025 Reg CC MTG, Page *194
Business-Type Governmental
Activities Activities
Water Enterprise Internal
Fund Service Fund
ASSETS
Current assets:

Cash and investments (note 2) 5,650,019 $ 3,499,627
Receivables:

Accounts 1,848,884 -
Taxes 25,021 -
Inventories 169,008 -
Total current assets 7,692,932 3,499,627
Noncurrent assets:

Capital assets (note 5):

Land - 70,675
Construction in progress 3,459,032 -
Equipment and furniture 874,955 809,509
Vehicles - -
Infrastructure 37,658,447 -
Less accumulated depreciation (12,242,021) (255,632)
Total capital assets, net 29,821,088 553,877
Total noncurrent assets 29,821,088 553,877
Total assets 37,514,020 4,053,504

DEFERRED OUTFLOWS OF RESOURCES
Pensions (note 8) 887,330 -
Total deferred outflows of resources 887,330 -

LIABILITIES
Current liabilities:

Accounts payable 826,218 47,787
Accrued liabilities 120,038 -
Interest payable 30,071 -
Deposits payable 1,000 -
Bonds payable - due within one year (note 6) 356,796 -
Compensated absences - due within one year (note 6) 54,735 - Total current liabilities 1,388,858 47,787
Noncurrent liabilities:

Bonds payable - due in more than one year (note 6) 4,478,313 - Pension Liability (note 8) 2,996,342 -
Compensated absences - due in more than one year (note 6) 218,939 - Total noncurrent liabilities 7,693,594 -
Total liabilities 9,082,452 47,787

DEFERRED INFLOWS OF RESOURCES
Pensions (note 8) - 91,177
Total deferred inflows of resources 91,177 -

NET POSITION
Net investment in capital assets 24,985,979 553,877
Unrestricted 4,241,742 3,451,840
Total net position 29,227,721 $ 4,005,717

CITY OF LOMITA
Statement of Fund Net Position
Proprietary Funds
June 30, 2025
See accompanying notes to the basic financial statements. 20 Tuesday, December 16, 2025 Reg CC MTG, Page *195
Business-Type Governmental
Activities Activities
Water Enterprise Internal
Fund Service Fund
Operating revenues:

Charges for services 7,968,377 $ -
Other revenues 1,231,845 -
Total operating revenues 9,200,222 -
Operating expenses:

Cost of water purchased 3,616,511 -
Salaries, wages and benefits 2,194,546 -
Materials and supplies 172,144 -
Contractual services 544,571 32,862
Repairs and maintenance 332,442 -
Rents and leases 112,819 -
Depreciation (note 5) 784,985 64,399
Total operating expenses 7,758,018 97,261
Operating income (loss) 1,442,204 (97,261)
Non-operating revenues (expenses):

Investment income 193,222 47,385
Interest expense and fees (144,351) -
Total non-operating revenues (expenses) 48,871 47,385
Income (loss) before transfers 1,491,075 (49,876)
Transfers in (note 4) - 700,000
Change in net position 1,491,075 650,124
Net position, beginning of year 27,736,646 3,355,593
Net position, end of year 29,227,721 $ 4,005,717

CITY OF LOMITA
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2025
See accompanying notes to the basic financial statements. 21 Tuesday, December 16, 2025 Reg CC MTG, Page *196
Business-Type Governmental
Activities Activities
Water Enterprise Internal
Fund Service Fund
Cash flows from operating activities:

Cash received from customers and other governments 9,160,397 $ - Cash paid to suppliers for goods or services (4,738,207) 659 Cash paid to employees for services (2,157,560) -
Net cash provided (used by) operating activities 2,264,630 659 Cash flows from capital and related financing activities:

Purchase, acquisition and construction of capital assets (3,344,593) (55,341) Principal paid on capital debt (341,000) -
Interest paid on capital-related debt (131,155) -
Net cash provided (used by) capital and related financing activities (3,816,748) (55,341) Cash flows from investing activities:

Investment income 47,385 193,222
Net cash provided (used by) investing activities 193,222 47,385 Cash flows from non-capital activities - cash received
(paid) from/to other funds - 700,000
Net increase (decrease) in cash and cash equivalents (1,358,896) 692,703 Cash and equivalents, beginning of year 7,008,915 2,806,924 Cash and equivalents, end of year 5,650,019 $ 3,499,627 Reconciliation of operating income to net cash provided by operating activities:

Operating income (loss) 1,442,204 $ (97,261)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 784,985 64,399
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (51,882) -
(Increase) decrease in taxes receivable 12,057 -
(Increase) decrease in inventories (37,980) -
Increase (decrease) in accounts payable 78,260 33,521
Increase (decrease) in accrued liabilities 77,443 -
Increase (decrease) in compensated absences (137,823) - Increase (decrease) in net pension liability, net of
deferred inflows and outflows 97,366 -
Total adjustments 822,426 97,920
Net cash provided (used) by operating activities 2,264,630 $ 659

CITY OF LOMITA
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
See accompanying notes to the basic financial statements. 22 Tuesday, December 16, 2025 Reg CC MTG, Page *197

FIDUCIARY FUND FINANCIAL STATEMENTS
Trust Funds - Trust funds are used to report a trust arrangement. All resources of these funds including any earnings on invested resources, must be used for specific purposes as set forth in the trust agreement. The City's trust funds are for a railroad foundation and donations for a memorial.

Tuesday, December 16, 2025 Reg CC MTG, Page *198
Trust
Funds
ASSETS
Current assets:

Cash and investments (note 2) $ 22,813
Receivables:

Accounts 211
Total assets 23,024

LIABILITIES
Current liabilities:

Accounts payable 747
Accrued liabilities 16
Total liabilities 763

NET POSITION
Restricted for foundation 21,034
Restricted for memorial 1,227
Total net position 22,261$

CITY OF LOMITA
Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2025
See accompanying notes to the basic financial statements. 23 Tuesday, December 16, 2025 Reg CC MTG, Page *199
Private
Purpose
Trust
Funds
Additions:

Other revenues $ 8,969
Total additions 8,969
Deductions:

Miscellaneous 8,728
Total deductions 8,728
Change in net position 241
Net position, beginning of year 22,020
Net position, end of year 22,261$

CITY OF LOMITA
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Funds
For the year ended June 30, 2025
See accompanying notes to the basic financial statements. 24 Tuesday, December 16, 2025 Reg CC MTG, Page *200
25 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
Year ended June 30, 2025
(1) Reporting Entity and Summary of Significant Accounting Policies (a) Summary of Significant Accounting Policies
The basic financial statements of the City have been prepared in conformity with generally accepted accounting principles as applicable to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The Financial Reporting Entity
The City of Lomita was incorporated June 30, 1964, under the general laws of the State of California. The City operates under a Council-Administrator form of government and provides the following services: public safety (police and fire through the County of Los Angeles), community services, engineering services, planning services, public works, general administrative services, and capital improvements.

This report includes governmental activities and business-type activities of the City of Lomita (the “primary government”), as well as, the Lomita Railroad Foundation, Inc. (Foundation), the Lomita Manor Housing Authority (the Authority), and the Lomita Public Financing Authority (PFA). The Foundation, the Authority, and the PFA all meet the definition of a component unit, and are presented on a “blended” basis as if they were part of the primary government. The PFA is not currently active. Although they are legally separate entities, the City Council serves as their governing board. The City may impose its will on the Foundation and the Authority, including the ability to appoint, hire, reassign or dismiss management. There is also a financial benefit/burden relationship between the City and the other entities.

The Lomita Railroad Museum Foundation, Inc. was formed September 17, 1990, as a non-profit organization under the laws of the State of California. The corporation was formed to assist in maintaining, enhancing, and promoting the Lomita Railroad Museum.

Separate financial statements are not prepared for the Foundation.

The Lomita Manor Housing Authority was formed in 1985 as a non-profit organization to administer the local U.S. Department of Housing and Urban Development (HUD) conventional housing program. The City of Lomita contracts with an outside management company to administer this program. Separate financial statements are not prepared for the Authority.

The PFA was established to simplify the issuance of tax-exempt bonds that are issued by the City for the purpose of making lower-cost financing available for certain projects that provide a public benefit, contribute to social and economic growth, and improve the overall quality of life in the City.

Tuesday, December 16, 2025 Reg CC MTG, Page *201
26 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting Entity and Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
 Government-wide financial statements
 Fund financial statements
 Notes to the basic financial statements
Financial reporting is based upon all GASB pronouncements, including the GASB Codification of Accounting and Financial Reporting Guidelines.

Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, 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 reporting government 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, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange transactions are recognized in accordance with GASB Statement No. 33 government-wide activity requirements.

Tuesday, December 16, 2025 Reg CC MTG, Page *202
27 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting Entity and Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) 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 netted with program expenses in the statement of activities to present the net cost of each program.

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 an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, 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, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about the major fund individually and nonmajor funds in the aggregate for governmental and enterprise funds. Fiduciary statements include financial information for fiduciary funds and similar component units. 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 modifiedaccrual 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.

Tuesday, December 16, 2025 Reg CC MTG, Page *203
28 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting Entity and Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu fees, transient occupancy taxes, 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 measurable and available 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 nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

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

Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate; however, that they should not be considered “available spendable resources” since they do not represent net current assets.

Revenues, expenditures, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Nos. 33 and 65 which require that local governments defer grant revenue that is not received within the City’s adopted policy of 60 days after the fiscal year ends to meet the “available” criteria of revenue recognition. Therefore recognition of governmental fund type revenue represented by non-current receivables are deferred inflow until they become current receivables. Non-current portions of other long-term receivables are offset by fund balance reserve accounts.

Tuesday, December 16, 2025 Reg CC MTG, Page *204
29 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting Entity and Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, 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.

When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.

Proprietary and Fiduciary Funds
The City’s enterprise and internal service funds are proprietary funds. In the fund financial statements, proprietary 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, the proprietary fund is presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All expenses not meeting this definition are treated as non-operating expenses. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements, rather than as an other financing source.

Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability, rather than as an expenditure. Private-purpose trust funds are used to report a trust arrangement. All resources of these funds, including any earnings on invested resources, must be used for specific purposes.

Tuesday, December 16, 2025 Reg CC MTG, Page *205
30 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting Entity and Summary of Significant Accounting Policies, (Continued) (c) Fund Classifications
The City reports the following major funds:

General Fund – This is the primary operating fund of the City. It accounts for all activities of the general government, except those required to be accounted for in another fund.

Measure R Highway Fund – Used to account for street improvement projects on a cost reimbursement basis.

Proposition C Fund – Used to account for Proposition C local return revenues received from County sales tax dollars.

Street Improvements Fund – Used to account for the acquisition, construction and improvement of street improvements and infrastructure. The projects are funded by transfers from the General Fund.

Water Enterprise Fund – This fund is used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that costs of providing water utility services to the general public on a continuing basis be financed or recovered primarily through user charges.

The City’s fund structure also includes the following fund types:

Internal Service Fund – Internal service fund is used to account for the City’s cost of maintaining and replacing the City’s capital assets. City departments are the primary users of these services and are charged a fee on a cost reimbursement basis.

Fiduciary Funds – Fiduciary funds are used to report a trust arrangement for the Railroad Foundation and Tom Rico Memorial. All resources of these funds, including any earnings on invested resources, must be used for specific purposes as set forth in trust agreement.

Tuesday, December 16, 2025 Reg CC MTG, Page *206
31 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (d) Fund Balances and Spending Policy
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:

Nonspendable – Items that cannot be spent because they are not in a spendable form, such as prepaids and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan fund.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, the City Council is considered the highest authority for the City and approves such commitments through council resolutions. These committed amounts cannot be used for any other purposes unless the City Council removes or changes the specified use through council resolution.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources that are neither restricted or committed. Assignment of resources can be done by the highest level of decision making (City Council Resolution) or by a committee or official designated for that purpose. The City Council has authorized the Director of Finance for the purpose to assign fund balance for specific departmental projects.

Unassigned – The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Funds, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

When both restricted and unrestricted resources are available for use when an expenditure is incurred, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. It is the City’s policy to consider committed amounts as being reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Tuesday, December 16, 2025 Reg CC MTG, Page *207
32 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (e) Cash and Investments
Investments are reported in the accompanying balance sheet at fair value. These investments are not transferable and they have terms that are not affected by changes in market interest rates. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income reports interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. The City’s practice is to hold investments until maturity.

As of July 1, 2015, the City adopted Governmental Accounting Standards Board ("GASB") Statement No. 72, Fair Value Measurements and Application. GASB Statement No. 72 provides guidance for determining a fair value measurement for reporting purposes, applying fair value to investments, and disclosures related to all fair value measurements. The City categorized the fair value measurements for its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City follows the practice of pooling cash and investments of all funds except for funds required to be held by the outside fiscal agent under provisions of the loan payable agreement. Interest income earned on pooled cash and investments is allocated quarterly to the funds based on average monthly cash and investment balances. Interest income with cash with fiscal agent is credited directly to the related fund. (f) Statement of Cash Flows
For purposes of the statement of cash flows the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. In addition, cash invested in the City's cash management pool is considered to be cash equivalents. (g) Capital Assets
Capital assets (including additions to infrastructure) are recorded at cost (except for intangible right-to-use lease assets which the measurement is discussed thereafter) where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets, works of art and similar items, and capital assets received in service concession arrangements are valued at acquisition value at the date of donation.

Generally, capital asset purchases in excess of $5,000 (including infrastructure) are capitalized if they have an expected useful life of one year or more. Capital assets include additions to public domain (infrastructure) general capital assets consisting of certain improvements including roads and streets, curbs, gutters and sidewalks, street lights, signs and signals, park equipment and storm drains. The City chose to value its infrastructure in its entirety (e.g., prior to 1980). Capital assets used in operations are depreciated over their Tuesday, December 16, 2025 Reg CC MTG, Page *208
33 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (g) Capital Assets, (Continued)
estimated useful lives using the straight-line method in the government – wide financial statements and in the fund financial statements of the enterprise fund. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The ranges of lives used for depreciation purposes for each capital asset class are as follows:

Buildings and improvements 50 years
Leasehold improvements 10 years
Right of Use Leased Equipment/Subscriptions 3-5 years
Furniture, equipment and vehicles 3-25 years
Infrastructure - Sewer lines 25-50 years
Infrastructure – Storm drain system 20-100 years
Infrastructure - Roadways 30-100 years
Infrastructure – Waterlines 25-50 years
Infrastructure - Other 20-60 years
(h) Inventories and Prepaids
Inventories of water meters and fittings are recorded in the Water Department Enterprise Fund. Inventories in the General Fund consist of street signs. Inventories are stated at cost using the average cost method. Payments made to vendors for services that will benefit periods beyond the current fiscal year are recorded as prepaids. The City uses the consumption method when reporting prepaid items.
(i) Property Taxes
Property taxes attach as an enforceable lien on property as of the date the tax is levied.

Taxes are levied annually in August, and are payable annually in two installments in November and March. The County bills and collects the property taxes and remits them to the City in installments during the year. City property tax revenues are recognized when levied to the extent that they result in current receivables in accordance with GASB Code Section P70.

The County is permitted by State Law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed value at no more than two percent per year. The City receives a share of this basic levy. (j) Compensated Absences
The City accounts for compensated absences in accordance with GASB Statement No. 101.

In governmental funds, compensated absences are recorded as expenditures in the year paid, as it is the City’s policy to liquidate any unpaid vacation or sick leave at June 30 from future resources rather than currently available expendable resources. Accordingly, the entire unpaid liability for the governmental funds is recorded in the government-wide financial statements as these amounts will be liquidated from future resources.

Tuesday, December 16, 2025 Reg CC MTG, Page *209
34 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (k) Deferred Outflows/ Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represent a consumption of net assets 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 outflows relating to the OPEB and net pension obligation reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, which are expensed in the following year, and of adjustment due to difference in proportions and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions.

These amounts are deferred and amortized over the expected average remaining service life time. Deferred outflows relating to the reacquisition loss on refunding bonds reported in the government-wide statement of net position and statement of fund position for proprietary funds. These outflows are the results of difference between the reacquisition price and the net carrying amount of the refunded bonds, which are recognized as a component of interest expense over the remaining life of the bonds. 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 so will not be recognized as an inflow of resources (revenue) until that time. The City has three items that qualifies for reporting in this category which are deferred inflows relating to leases, OPEB, and the net pension obligation reported in the government-wide statement of net position. These inflows are the result of the net difference between present value of future lease revenues, as well as, projected and actual earnings on OPEB and pension plan investments, respectively. The OPEB and pension amounts are deferred and amortized straight-line over a five-year period. (l) Long-Term Debt and Interest Payable
In the Government-Wide Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are immediately expensed in the GovernmentWide Financial Statements in addition to the Proprietary and Fiduciary Fund Statements in accordance with GASBs No. 65 and 86. In the Fund Financial Statements, with the exception of advances from other funds, long-term liabilities are not presented.

Consequently, long term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

Tuesday, December 16, 2025 Reg CC MTG, Page *210
35 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (l) Long-Term Debt and Interest Payable, (Continued)
In the Government-Wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities. In the Fund Financial Statements, only propriety fund types recognize the interest payable when the liability is incurred.
(m) Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

In the Government-Wide Financial Statements, net position are classified in the following categories: Net Investment in Capital Assets consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position are restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net position is all net position that do not meet the definition of “invested in capital assets, net of related debt” or “restricted net position.”
(n) Use of Estimates
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
(o) Pensions
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 of Lomita’s California Public Employees’ Retirement System (CalPERS) plan (Plan) 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.

Tuesday, December 16, 2025 Reg CC MTG, Page *211
36 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (p) New Accounting Pronouncements
For the year ended June 30, 2025, the financial statements include the adoption of GASB Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The cumulative effect of adopting this standard was not significant, hence, no restatement of beginning net position was required.

The City also adopted GASB Statement No. 102, Certain Risk Exposures during the current year, however, its adoption did not have a significant effect on the financial statements.
(q) Leases and Subscription Agreements
Lessee: The City is a lessee for a noncancellable lease of equipment and software subscriptions. The City recognizes a lease or subscription agreement liability and an intangible right-to-use lease or subscription agreement asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.

At the commencement of a lease or subscription agreement, the City initially measures the lease liability at the present value of payments expected to be made during the lease or subscription agreement term. Subsequently, the liability is reduced by the principal portion of payments made. The lease or subscription agreement asset is initially measured as the initial amount of the liability, adjusted for payments made at or before the commencement date, plus certain initial direct costs. Subsequently, the asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

The term includes the noncancellable period of the lease. Lease payments included in the measurement of the liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease or subscription agreement assets are reported with other capital assets and lease or subscription agreement liabilities are reported with long-term debt on the Statement of Net Position.

Tuesday, December 16, 2025 Reg CC MTG, Page *212
37 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(1) Reporting City and Summary of Significant Accounting Policies, (Continued) (q) Leases, (Continued)
Lessor: The City is a lessor for a noncancellable leases of a portion of real property, as well as, building and roof space. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of the lease payments received.

The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key elements and judgement include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses it estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included In the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. (2) Cash and Investments
Cash and investments at June 30, 2025 are reported as follows in the financial statements:

Statement of net position:

Cash and investments $38,327,556
Statement of fiduciary net position:

Cash and investments 22,813
$38,350,369
Tuesday, December 16, 2025 Reg CC MTG, Page *213
38 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments, (Continued)
Cash and investments at June 30, 2025 consisted of the following:

Petty cash $ 1,550
Demand deposits held by City 5,950,275
Investments:

Money market 12,100
Negotiable certificates of deposits 17,255,692
US Treasury Notes 2,475,964
US Government Bonds 5,615,323
Corporate Bonds 2,940,540
Local Agency Investment Fund 4,098,925
Total cash and investments $38,350,369
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.

Authorized *Maximum *Maximum
Investment Types By Investment *Maximum Percentage Investment Authorized by State Law Policy Maturity Of Portfolio in One Issuer

Local Agency Bonds No 5 years None None
U.S. Treasury Bills Yes None 60% None
U.S. Treasury Notes Yes 5 years 40% None
U.S. Agency Securities Yes 5 years 20% None
Banker's Acceptances Yes 180 days 10% None
Commercial Paper Yes 180 days 10% 10%
Negotiable Certificates of Deposit Yes 5 years 50% None Repurchase Agreements No 1 year None None
Passbook savings demand deposits Yes 5 years None None
Reverse Repurchase Agreements No 92 days 20% of base value None Medium-Term Notes Yes 5 years 30% None
Mutual Funds that invest only in State of
California authorized investments Yes 5 years 20% combined None
SEC registered Money Market Mutual Funds Yes 5 years None Local Agency Investment Fund (LAIF) Yes 5 years $40,000,000 None * Based on state law requirements or investment policy requirements, whichever is more restrictive.

Tuesday, December 16, 2025 Reg CC MTG, Page *214
39 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments, (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Remaining Maturity (in Years)
1 Year 1 to 2 2 to 3 3 to 5
Investment Type Or less Years Years Years
Money market $ 12,100 12,100 - - -
Negotiable Certificates
of Deposit 17,255,692 3,914,983 4,397,314 2,757,102 6,186,293 US Treasury Notes 2,475,964 1,002,090 - - 1,473,874
US Government Bonds 5,615,323 1,224,515 1,467,753 749,020 2,174,035 Corporate Bonds 2,940,540 1,456,785 481,125 - 1,002,630 LAIF 4,098,925 4,098,925 - - -

Total $ 32,398,544 11,709,398 6,346,192 3,506,122 10,836,832 Fair Value Classifications
Fair value measurements are categorized based on the valuation inputs used to measure fair value: Level 1 inputs are quoted prices in active markets for identical asset assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Investments categorized as Level 2 are valued using the valuation multiple approach which uses prices in observed transactions (i.e. comparable market prices) at the end of the fiscal year.

Tuesday, December 16, 2025 Reg CC MTG, Page *215
40 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments, (Continued)
Investments' fair value measurements are as follows as of June 30, 2025:

Investment Type Fair Value Level 1 Level 2 Level 3
Money market $ 12,100 12,100 - -
Negotiable Certificates
of Deposit 17,255,692 - 17,255,692 -
US Treasury Notes 2,475,964 - 2,475,964 -
US Government Bonds 5,615,323 - 5,615,323 -
Corporate Bonds 2,940,540 - 2,940,540 -
Subtotal 28,299,619 12,100 28,287,519 -
LAIF 4,098,925
Total Leveled Investments $32,398,544
Investments in LAIF are uncategorized as deposit and withdrawals are made on the basis of $1 and not fair value.

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year end for each investment type.

Ratings as of Year End
Minimum
Legal Not rated
Exempt from
Investment Type Rating AA+ A- BBB+ Disclosure

Money market $ 12,100 N/A - - - 12,100
Negotiable Certificates
of Deposit 17,255,692 N/A - - - 17,255,692
US Treasury Notes 2,475,964 N/A 2,475,964 - - -
US Government Bonds 5,615,323 N/A 5,615,323 - - -
Corporate Bonds 2,940,540 N/A - 2,454,575 485,965 -
LAIF 4,098,925 N/A - - - 4,098,925

Total $32,398,544 8,091,287 2,454,575 485,965 21,366,717

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 had no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments.

Tuesday, December 16, 2025 Reg CC MTG, Page *216
41 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(2) Cash and Investments, (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) 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 California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. In the current fiscal year, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in collateralized accounts.

The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City has not agreed to such a waiver.

Investments in State Investment Pool
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The 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.

LAIF had the following limitations:
 Agencies are limited to a deposit amount of $75 million.  Please provide LAIF one day prior notice for deposits and withdrawals of $10 million or more.
 Minimum $5,000 transaction amount in increments of $1,000.  Maximum 15 transactions (combination of deposits and withdrawals) per month.

Tuesday, December 16, 2025 Reg CC MTG, Page *217
42 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(3) Interfund Balances
Interfund balances at June 30, 2025 consisted of the following:

Due To Other Funds:

Non-major
Governmental
Funds Total
Due From Other Funds:

General Fund $17,446 $17,446
The interfund balances were to eliminate negative cash balances in major and non-major special revenue funds.
(4) Interfund Transfers
Interfund transfers at June 30, 2025 consisted of the following:

Transfers In:

General
Fund
Measure R
Highway
Street
Improvement
Fund
Non-major
Governmental
Funds
Internal
Service
Fund Total
Transfers Out:

General Fund $ - 54,130 680,304 96,000 700,000 1,530,434 Non-major
Governmental
Funds 1,336,976 - - - - 1,336,976

Total $1,336,976 54,130 680,304 96,000 700,000 2,867,410 Transfers from the General Fund to the Internal Service fund in the amount of $700,000 were for internal charges on equipment. Transfers of $54,130, $680,304, and $96,000 from the General Fund were to subsidize the Measure R Highway, Street Improvement Fund and Non-major Governmental Funds for capital related projects and program reimbursements, respectively. A transfer of $1,336,976 from a Non-major Governmental Fund were to subsidize law enforcement costs in the General Fund.

Tuesday, December 16, 2025 Reg CC MTG, Page *218
43 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(5) Capital Assets
Capital asset activity for the year ended June 30, 2025 was as follows:

Governmental Activities:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 4,993,906 - - 4,993,906
Construction in process 910,050 2,180,468 88,597 3,001,921 Street trees 1,650,378 - - 1,650,378
Total non-depreciable 7,554,334 2,180,468 88,597 9,646,205 Depreciable:

Buildings 4,523,989 - - 4,523,989
Equipment and furniture 1,314,676 95,819 34,708 1,375,787 Right-to-use –
Leased Equipment 19,117 - - 19,117
Right-to-use – Subscription 182,735 - - 182,735
Vehicles 661,794 - - 661,794
Infrastructure 26,784,536 226,419 - 27,010,955
Total depreciable
capital assets 33,486,847 322,238 34,708 33,774,377
Less accumulated depreciation for:

Buildings 3,629,952 90,481 - 3,720,433
Equipment and furniture 577,811 80,927 34,708 624,030
Right-to-use –
Leased Equipment 11,469 3,823 - 15,292
Right-to-use – Subscription 86,500 36,914 - 123,414
Vehicles 227,539 48,937 - 276,476
Infrastructure 13,588,561 524,281 - 14,112,842

Total accumulated
depreciation 18,121,832 785,363 34,708 18,872,487
Total depreciable
capital assets, net 15,365,015 (463,125) - 14,901,890
Total capital assets, net $22,919,349 1,717,343 88,597 24,548,095 Tuesday, December 16, 2025 Reg CC MTG, Page *219
44 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(5) Capital Assets, (Continued)
Business-type Activities:

Beginning Ending
Description Balance Additions Deletions Balance
Non-depreciable:

Land $ 70,675 - - 70,675
Construction in process 5,279,420 2,499,529 4,319,917 3,459,032 Total non-depreciable 5,350,095 2,499,529 4,319,917 3,529,707 Depreciable:

Equipment and furniture 395,206 64,443 3,452 456,197
Vehicles 180,276 238,482 - 418,758
Infrastructure 32,796,391 4,872,260 10,204 37,658,447
Total depreciable
capital assets 33,371,873 5,175,185 13,656 38,533,402
Less accumulated depreciation for:

Equipment and furniture 206,598 26,051 3,452 229,197
Vehicles 113,469 15,130 - 128,599
Infrastructure 11,140,421 743,804 - 11,884,225
Total accumulated
depreciation 11,460,488 784,985 3,452 12,242,021
Total depreciable
capital assets, net 21,911,385 4,390,200 10,204 26,291,381 Total capital assets, net $27,261,480 6,889,729 4,330,121 29,821,088 Expenditures Remaining
Spent-to-date Commitment
Construction commitments:

Governmental activities- street projects:

Street Reconstruction – Zone G $ 1,428,122 $1,971,878
Lomita/Narbonne Intersection 115,076 767,924
Narbonne South Street Reconstruction 124,466 475,534
Business-type activities-water capital improvements:

Narbonne South Pipe Replacement 94,205 1,350,795
Cypress Water Production Upgrade 4,872,261 127,739
246th-247th Pl - Western 1,955,888 -
Tuesday, December 16, 2025 Reg CC MTG, Page *220
45 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(5) Capital Assets, (Continued)
Depreciation expense was charged in the following functions in the Statement of Activities:

Governmental Business-Type
Activities Activities
General Government $334,790 -
Community Development 103,245 -
Community Services 52,192 -
Public Works 147,283 -
Culture and Recreation 147,853 -
Water - 784,985
Total $785,363 784,985
(6) Long-term Liabilities
Long-term liability activity for the year ended June 30, 2025 was as follows: Amounts Beginning Ending Due within
Balance Additions Deletions Balance One Year
Governmental Activities:

Lease payable $ 7,528 - 3,745 3,783 3,783
Subscription Lease payable 104,710 - 39,717 64,993 43,151 Compensated absences (1) 650,687 - 71,005 * 579,682 115,936 Total governmental activities $ 762,925 - 114,467 648,458 162,870 Business-type Activities:

Bonds payable:

Bonds, series 2021 5,084,000 - 341,000 4,743,000 350,000 Bond premium 98,731 - 6,622 92,109 6,796
Compensated absences (2) 411,497 - 137,823 * 273,674 54,735 Total business-type activities 5,594,228 - 485,445 5,108,783 411,531 Total $ 6,357,153 - 599,912 5,757,241 574,401
(1) Compensated absences for government activities have typically been liquidated by the General Fund. (2) Compensated absences for business-type activities have typically been liquidated by the Water Fund. * The change in the compensated absences liability is presented as a net change.

Tuesday, December 16, 2025 Reg CC MTG, Page *221
46 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(6) Long-term Liabilities, (Continued)
2021 Water Revenue Refunding Bonds:

On July 15, 2021, the City issued the 2021 Water Revenue Refunding Bonds in the amount of $6,081,000 to refinance the 2016 Water Revenue Refunding Bonds in the amount of $5,995,000.

The purpose of the original 2008 bond issue was for capital improvements to the City’s water system (2008 Project). Principal payments are due in annual installments ranging from $337,000 to $450,000, commencing June 1, 2022 through June 1, 2037. The bonds accrue interest at a rate of 2.42%. Interest on the bonds is payable semiannually on June 1 and December 1, commencing on December 1, 2021. The bonds are payable solely from the net revenues of the water system of the city. Principal and interest paid for the current year, and net revenues were $461,952 and $2,082,809, respectively. At June 30, 2025, the ratio of the debt service payments due to the net revenues during fiscal year 2025 was .22 (22%). Upon default by the City as defined in the bonds’ installment purchase agreement, the Authority will declare the unpaid principal and accrued interest due and payable immediately.

The bond agreement for the Water Revenue Refunding Bonds requires the city to pledge its annual net revenues (defined as total revenues (including interest and gains) for the fiscal year less operation and maintenance costs (excluding depreciation and amortization)) in an amount equal to at least 125% of the annual debt service requirement for each fiscal year through final maturity of the bonds on June 1, 2037 or early retirement of the bonds, which ever first occurs.

The amount of annual net revenues equaled 360% of the annual debt service requirement in fiscal year 2025. As of June 30, 2025, the amount of the bonds outstanding was $4,743,000 and the City’s legal debt margin was $122,401,514.

Fiscal Year Principal Interest Total

2026 $ 350,000 112,663 462,663
2027 359,000 104,133 463,133
2028 367,000 95,396 462,396
2029 380,000 86,430 466,430
2030 389,000 77,186 466,186
2031-2035 2,083,000 239,674 2,322,674
2036-2037 815,000 23,534 838,534

Total $4,743,000 739,016 5,482,016
Tuesday, December 16, 2025 Reg CC MTG, Page *222
47 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(7) Leases
Leases Payable

In January 2022, the City entered into a five-year lease agreement as lessee for the acquisition and use of equipment. An initial lease liability was recorded in the amount of $18,724 during the fiscal year. As of June 30, 2025, the value of the lease liability was $3,783. The City is required to make monthly principal and interest payments of $319 for the equipment. The lease has an interest rate of 1.05%. The equipment has a five-year estimated useful life. The value of the right-to-use asset as of June 30, 2025 was $19,117 less accumulated amortization of $15,292.

Subscription Agreements Payable
In September 2022, the City entered into a 60 month subscription for the use of budgeting software. An initial subscription liability was recorded in the amount of $90,910. As of June 30, 2025, the value of the subscription liability is $41,408. The City is required to make annual fixed payments ranging from $20,000 to $23,000. The subscription has an interest rate of 6.0%.

The value of the right to use asset as of June 30, 2025 was $90,910 less accumulated amortization of $51,182.

In May 2022, the City entered into a 60 month subscription for the use of license and permit software. An initial subscription liability was recorded in the amount of $91,825. As of June 30, 2025, the value of the subscription liability is $23,585. The City is required to make annual fixed payments of $25,000. The subscription has an interest rate of 6.0%. The value of the right to use asset as of June 30, 2025 was $91,825 less accumulated amortization of $72,232.

The following future principal and interest payments on the leases payable and subscription agreements payable for June 30 are as follows:

Fiscal Year Principal Interest Total

2026 $ 46,934 3,939 50,873
2027 21,842 1,311 23,153
Total $68,776 5,250 74,026
Tuesday, December 16, 2025 Reg CC MTG, Page *223
48 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Defined Benefit Pension Plans
Plan Description: All qualified permanent and probationary employees are eligible to participate in the City of Lomita’s Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City of Lomita resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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 10 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 Public Employees’ Pension Reform Act of 2013 (PEPRA) requires new benefits and member contributions for new members as defined by PEPRA, that are hired after January 1, 2013. These PEPRA members in pooled plans are reflected in the new Miscellaneous and Safety risk pools created by the CalPERS Board in response to the passage of PEPRA, beginning with the June 30, 2013, risk-pool valuations.

Tuesday, December 16, 2025 Reg CC MTG, Page *224
49 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Defined Benefit Pension Plans, (Continued)
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows: Miscellaneous Prior to February 28, 2012 to On or after
Hire Date February 28, 2012 January 31, 2013 January 31, 2013 Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-63 52 - 67
Monthly benefits, as a % of
compensation 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.00% 7.00% 6.75%
Required contribution rates:

Normal cost rate 14.06% 10.10% 7.68%
Payment of unfunded liability $959,179 $15,608 $14,392
Contributions: Section 20814(c) of the California Public Employees’ Retirement Law 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.

Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. 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 City of Lomita is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Contributions to the pension plan were $1,089,551 for the year ended June 30, 2025.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions - As of June 30, 2025, the City of Lomita reported net pension liabilities for its proportionate shares of the net pension liability of $10,606,151.

The City’s net pension liability for the Miscellaneous Plan is measured as the proportionate share of the net pension liability of the collective cost-sharing plan. The City’s net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Miscellaneous Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. 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:

Proportion – June 30, 2023 0.21321%
Proportion – June 30, 2024 0.21929%

Change – Increase/(Decrease) 0.00608%
Tuesday, December 16, 2025 Reg CC MTG, Page *225
50 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Defined Benefit Pension Plans, (Continued)
For the year ended June 30, 2025, the City of Lomita recognized pension expense of $1,837,880.

At June 30, 2025, the City of Lomita reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contributions subsequent to
measurement date

$ 1,254,856

$ -
Difference between expected and actual
experience

916,999

(35,781)
Changes in proportions - (233,237)
Difference between actual and projected
contributions

85,845

(53,720)
Difference between actual and projected
Investment earnings

610,583

-
Changes in assumptions 272,600 -

Total $3,140,883 $ (322,738)
$1,254,856 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

2026 $ 430,265
2027 1,340,366
2028 1,899
2029 (209,241)

Total $ 1,563,289
Tuesday, December 16, 2025 Reg CC MTG, Page *226
51 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Defined Benefit Pension Plans, (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.75%
Payroll Growth 3.0%
Projected Salary Increase Varies by Entry Age
and Service
Investment Rate of Return 7.375% (1)
Mortality (2)
(1) Net of pension plan investment expenses, including inflation. (2) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale AA.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 6.90 percent.

The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City’s contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension 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 long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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

Tuesday, December 16, 2025 Reg CC MTG, Page *227
52 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(8) Defined Benefit Pension Plans, (Continued)
Asset Class
Assumed
Asset
Allocation
Real
Return
1-10 (a)(b)

Global equity-Cap-weighted 30.0% 4.54%
Global equity-Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 27.00%
Mortgage-backed Securities 5.0% 50.00%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage (5.0%) (59.00)%
Total 100%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

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, calculated using the discount rate of 6.90 percent, as well as what the City’s proportionate share of net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent), or 1-percentage point higher (7.90 percent), than the current rate:

Miscellaneous
1% Decrease 5.90%
Net Pension Liability $15,585,365

Current Discount Rate 6.90%
Net Pension Liability $10,606,151

1% Increase 7.90%
Net Pension Liability $6,507,526
Tuesday, December 16, 2025 Reg CC MTG, Page *228
53 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(9) Other Post Employment Benefits (OPEB)
Plan Description - In addition to the pension benefits described above, the City provides retiree health insurance benefits. The City contracts with the Public Employee’s Retirement System to provide benefits to retirees under the Employees’ Hospital and Medical Care Act. Employees who retire from the City may elect to continue their medical insurance through the available PERS plans. When retirees reach 65, they must enroll on Medicare and then may select a Medicare supplemental plan through the PERS insurance plans. This is a defined, single employer benefit plan with the City paying the minimum allowed contribution and the employees paying the balance of the selected plan premium. Changes to the plan require a resolution approved by the City Council and submitted to PERS.

Employee Covered – As of June 30, 2025 actuarial valuation, the following current and former employees were covered by the benefit terms under the plan:

Active employees 52
Inactive employees or beneficiaries currently
receiving benefits 29
Inactive employees entitled to, but not yet
receiving benefits -
Total 81
Contributions - Currently, the City funds retiree healthcare benefits on a pay-as-you-go basis.

The City recognizes expenditure for its share of the annual premiums as these benefits become due. For fiscal year 2024-2025, the City paid $249,205 for benefits of 29 retired employees.

Net OPEB Liability - The City of Lomita net OPEB liability was measured as of June 30, 2025 and the total OPEB liability used to calculate the net OEPB liability was determined by an actuarial valuation date June 30, 2025 that was rolled forward to determine the June 30, 2025 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 4.71%
Projected Salary Increase 2.80%
General Inflation 2.30%
Mortality Varies (1)
(1) The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of a actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

Tuesday, December 16, 2025 Reg CC MTG, Page *229
54 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(9) Other Post Employment Benefits (OPEB), (Continued)
Discount Rate – The discount rate used to measure the OPEB liability was 4.71 percent, which was based on the published change in return for the applicable municipal bond index.

The Changes in the net OPEB liability for the plan are as follows:

Increase (Decrease)
Total
OPEB
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net OPEB
Liability/
(Asset)
(c)=(a)-(b)
Balance at Fiscal Year Ending 6/30/24
Measurement Date 6/30/24 $5,143,750

$ -

$5,143,750
Changes During the Period: -
Service Cost 139,065 - 139,065
Interest Cost 204,781 - 204,781
Expected Investment Income - - -
Employer Contributions - 249,205 (249,206)
Changes of Benefit Terms - - -
Benefit Payments (249,205) (249,205) -
Assumption Changes (713,998) - (713,998)
Plan Experience 1,066,930 - 1,066,930
Investment Experience - - -
Recognized Deferred Resources - - -
Employer Contributions Subsequent
to Measurement Date -

-

-
Net Changes in Fiscal Year 2024-25 447,573 - 447,573
Balance at Fiscal Year Ending 6/30/25
Measurement Date 6/30/25 $5,591,323

$ -

$5,591,323
Sensitivity of the Proportionate Share of the OPEB Liability to Changes in the Discount Rate – The following presents the City of Lomita’s’ OPEB liability, calculated using the discount rate, as well as what the City’s OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease 3.71%
OPEB Liability $6,340,174

Current Discount Rate 4.71%
OPEB Liability $5,591,323

1% Increase 5.71%
OPEB Liability $4,974,032
Tuesday, December 16, 2025 Reg CC MTG, Page *230
55 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(9) Other Post Employment Benefits (OPEB), (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trends – The following presents the net OPEB liability of the City of Lomita 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 the measurement period June 30, 2024:
1% Decrease 6.9% decreasing to 3.04%
OPEB Liability $4,950,551
Current Healthcare Rate 7.9% decreasing to 4.04%
OPEB Liability $5,591,323
1% Increase 8.9% decreasing to 5.04%
OPEB Liability $6,380,017
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the fiscal year ended June 30, 2025, the City of Lomita recognized OPEB expense of $179,295. As of the fiscal year ended June 30, 2025, the City of Lomita reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows
of Resources
Deferred Inflows
of Resources
Change in assumptions $ 263,740 (1,463,646)
Differences between expected and
actuarial experience in measurement
of the Total OPEB Liability

970,761

(587,406)
Total $ 1,234,501 (2,051,052)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30

2026 $ (164,551)
2027 (164,551)
2028 (164,551)
2029 (209,523)
2030 (210,041)
Thereafter 96,660
$ (816,557)
(10) Risk Management
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement: The City of Lomita is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA Tuesday, December 16, 2025 Reg CC MTG, Page *231
56 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(10) Risk Management, (Continued)
began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

B. Primary Self-Insurance Programs of the Authority: Each member pays an annual contribution at the beginning of the coverage period. 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. 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 2024-25 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 as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

C. Purchased Insurance: Pollution Legal Liability Insurance The City of Lomita 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 Lomita. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.

Property Insurance: The City of Lomita participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Lomita Tuesday, December 16, 2025 Reg CC MTG, Page *232
57 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(10) Risk Management, (Continued)
property is currently insured according to a schedule of covered property submitted by the City of Lomita to the Authority. City of Lomita property currently has all-risk property insurance protection in the amount of $42,665,627. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Earthquake and Flood Insurance: The City of Lomita purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Lomita property currently has earthquake protection in the amount of $8,132,758.

There is a deductible of 5% per unit of value with a minimum deductible of $100,000.

Crime Insurance: The City of Lomita purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.

Special Event Tenant User Liability Insurance: The City of Lomita further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Lomita according to a schedule. The City of Lomita then pays for the insurance. The insurance is facilitated by the Authority.

D. Adequacy of Protection: During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2024-25. (11) Commitments and Contingencies
A. Lawsuits in the Normal Course of Business: The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

B. Federal and State Grant Programs: The City participates in several federal and state grant programs.

These programs have been audited by the City's independent auditors in accordance with the provisions of the federal Single Audit Act, as amended and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time.

Tuesday, December 16, 2025 Reg CC MTG, Page *233
58 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(12) Classification of Fund Balances
The City follows the provisions of GASB Statement No. 54, “Fund Balance and Governmental Fund Type Definitions. GASB 54 established fund balance classification based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The governmental fund statements conform to the new classification and are summarized as follows as of June 30, 2025:

Special Revenue Funds
Capital
Project
Fund
General
Fund
Measure R
Highway
Proposition
C
Street
Improvement
Non-major
Governmental
Funds Totals
Nonspendable Prepaids $ 2,294 - - - 13,485 15,779
Inventory 21,976 - - - - 21,976
Total Nonspendable 24,270 - - - 13,485 37,755
Restricted
Street Maintenance - - - - 2,327,273 2,327,273
Public Transportation - - - - 1,478,143 1,478,143
Clean Air Act Programs - - - - 103,502 103,502
Safe Clean Water Program - - - - 368,926 368,926
Landscape Maintenance - - - - 21,204 21,204
Park Improvement - - - - 688,868 688,868
Park Athletic Program - - - - 159,901 159,901
Low Mod Housing & CDBG - - - - 794,572 794,572
Law Enforcement, CLEEP - - - - 6,757 6.757
Total Restricted - - - - 5,949,145 5,949,145
Committed
Street Improvement - - 3,187,070 - 2,407,466 5,594,435
Stephenson Center 85,744 - - - - 85,744
Total Committed 85,744 - 3,187,070 - 2,407,466 5,680,280 Assigned
Facilities Improvement 3,263,508 - - - - 3,263,508
Capital Improvement - - - - 153,191 153,191
Street Improvement - - - 2,983,040 - 2,983,040
Reserve Appropriations 5,000,000 - - - - 5,000,000
Economic Stabilization 500,000 - - - - 500,000
OPEB Trust 272,932 - - - - 272,932
Economic Development 746,507 - - - - 746,507
General Plan Update 662,551 - - - - 622,551
Pension Stabilization 1,432,646 - - - - 1,432,646
Total Assigned 11,878,144 - - 2,983,040 153,191 15,014,375 Unassigned 1,850,066 - - - - 1,850,066
Totals $13,838,224 - 3,187,070 2,983,040 8,523,287 28,531,621 Tuesday, December 16, 2025 Reg CC MTG, Page *234
59 CITY OF LOMITA

NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
(13) Other Required Disclosures
Deficit Fund Balances
The following funds had deficit fund balances as of June 30, 2025: Non-major Special Revenue Funds:

Community Development Block Grant $318 (a)
(a) The deficit fund balance was due to actual expenses exceeding the reimbursable revenues. (14) Subsequent Events
Management has evaluated subsequent events through December 11, 2025, which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

Tuesday, December 16, 2025 Reg CC MTG, Page *235

REQUIRED SUPPLEMENTARY INFORMATION
Tuesday, December 16, 2025 Reg CC MTG, Page *236
Combined Combined Combined Combined
June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2024-25 2023-24 2022-23 2021-22
Proportion of the net
pension liability (asset) 0.08746% 0.08546% 0.08687% 0.10083% Proportionate share of the net
pension liability (asset) 10,606,151 $ 10,661,476 $ 10,033,856 $ 5,453,063 $ Covered payroll 1 $ 3,827,143 4,026,308 $ 3,406,756 $ 3,250,441 $ Proportionate Share of the net pension
liability (asset) as percentage
of covered payroll 263.42% 278.58% 294.53% 167.76%
Plan's fiduciary net position 19,241,277,838 $ 17,692,895,076 $ 16,770,671,339 $ 18,065,791,524 $ Plan's total pension liability 24,077,884,150 $ 22,693,312,153 $ 21,449,898,398 $ 19,964,594,105 $ Plan fiduciary net position as a
percentage of the total
pension liability 71.26% 69.84% 70.43% 83.07%
1 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) The City's defined benefit pension plan is held in a trust. 60 CITY OF LOMITA
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios June 30, 2025
Cost Sharing Defined Benefit Pension Plan
Last 10 Fiscal Years
Tuesday, December 16, 2025 Reg CC MTG, Page *237
Combined Combined Combined Combined Combined Combined
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16

0.07908% 0.07873% 0.08409% 0.09084% 0.09326% 0.09967%
$ 8,067,243 8,604,362 $ 8,103,476 $ 9,009,203 $ 8,069,774 $ 6,841,270 $ $ 3,254,459 3,280,589 $ 3,191,154 $ 3,090,957 $ 2,926,047 $ 2,938,496 $ 262.28% 247.88% 253.94% 291.47% 275.79% 232.82%
$ 13,979,687,268 14,702,361,183 $ 13,122,440,092 $ 12,074,499,781 $ 10,923,476,287 $ 10,896,036,068 $ $ 17,984,188,264 18,920,437,526 $ 16,891,153,209 $ 16,016,547,402 $ 14,397,353,530 $ 13,639,503,084 $

72.81% 73.65% 72.20% 67.95% 68.65% 72.19%
61 Tuesday, December 16, 2025 Reg CC MTG, Page *238
Combined Combined Combined Combined
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2024-25 2023-24 2022-23 2021-22
Actuarially determined contribution 1 $ 1,089,551 1,254,856 $ 1,073,677 $ 955,758 $ Contributions in relation to the
actuarially determined contributions 1
$ (1,089,551) (1,254,856) $ (1,073,677) $ (955,758) $
Contribution deficiency (excess) -$ - $ - $ - $
Covered payroll 2 $ 4,026,308 4,431,097 $ 3,827,143 $ 3,406,756 $ Contributions as a percentage of
covered payroll 2 28.32% 27.06% 28.05% 28.05%
1 Employee are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as "side funds" do not conform to the circumstances described in paragraph 120 of GASB 68, therefore are not considered separately financed specific liabilities. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal 2018-19 were from the June 30, 2018 public agency valuations.

Actuarial cost method Entry-age
Amortization method/period For detail, see June 30, 2018 Funding Valuation Report Asset valuation method Actuarial Value of Assets. For details see June 30, 2018 Funding Valuation Report.

Inflation 2.75%
Salary increases Varies by Entry Age and Service
Payroll growth 3.00%
Investment rate of return 7.5% Net of Pension Plan Investment and Administrative expenses, includes inflation
Retirement age The probabilities of Retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007.

Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post-Retirement mortality rates included 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.
62 CITY OF LOMITA
Schedule of Plan Contributions
June 30, 2025
Cost Sharing Defined Benefit Pension Plan
Last 10 Fiscal Years
Tuesday, December 16, 2025 Reg CC MTG, Page *239
Combined Combined Combined Combined Combined Combined
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16
$ 782,589 862,587 $ 808,631 $ 837,192 $ 781,413 $ $ 730,301 $ (782,589) (862,587) $ (1,282,850) $ (1,420,192) $ (781,257) $ (730,457) $ $ - $ - $ (583,000) (474,219) $ 156 $ (156) $
$ 3,280,589 3,199,125 $ 3,254,459 $ 3,191,154 $ 597,768 $ 403,542$

26.96% 23.86% 39.42% 44.50% 130.70% 181.01%
63 Tuesday, December 16, 2025 Reg CC MTG, Page *240
2025 2024 2023 2022 2021
Total OPEB Liability
Service cost $ 139,065 $ 135,343 $ 144,587 $ 228,517 $ 198,117 Interest on the total OPEB Liability 204,781 203,310 196,925 156,877 174,777 Actual and expected
experience difference 1,066,930 43,325 4,944 (951,276) (157,118) Changes in assumptions (713,998) 97,312 (1,504,719) (1,339) 516,900 Changes in benefit terms - - - - -
Benefit payments (245,896) (249,205) (207,859) (181,233) (159,321) Net change in total OPEB liability 447,573 233,394 137,258 (2,251,834) 573,355 Total OPEB liability - beginning 5,143,750 4,910,356 4,773,098 7,024,932 6,451,577 Total OPEB liability - ending (a) $ 5,591,323 5,143,750 $ 4,910,356 $ 4,773,098 $ 7,024,932 $ Plan Fiduciary Net Position
Contribution - employer $ 249,205 $ 245,896 $ 207,859 $ 181,233 $ 159,321 Net investment income - - - - -
Benefit payments (249,205) (245,896) (207,859) (181,233) (159,321) Administrative expense - - - - -
Net change in plan fiduciary
net position - - - - -
Plan fiduciary net position -
beginning - - - - -
Plan fiduciary net position -
ending (b) $ - $ - $ - $ - $ -
Net OPEB liability - ending (a)-(b) $ 5,591,323 5,143,750 $ 4,910,356 $ 4,773,098 $ 7,024,932 $ Covered employee payroll 4,487,931 4,372,760 4,104,780 3,513,344 3,455,483 Net OPEB liability as a percentage
of covered employee payroll 124.6% 117.6% 119.6% 135.9% 203.3% Notes to Schedule
Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.

CITY OF LOMITA
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30
64 Measurement Period
Tuesday, December 16, 2025 Reg CC MTG, Page *241
2020 2019 2018
Total OPEB Liability
Service cost 204,755 $ $ 181,090 $ 179,837
Interest on the total OPEB Liability 189,858 190,222 179,461 Actual and expected
experience difference (208,583) - -
Changes in assumptions 506,719 321,438 (86,699)
Changes in benefit terms - - -
Benefit payments (120,887) (127,296) (113,517)
Net change in total OPEB liability 565,453 571,863 159,082 Total OPEB liability - beginning 5,886,124 5,314,261 5,155,179 Total OPEB liability - ending (a) 6,451,577 $ 5,886,124 $ 5,314,261 $ Plan Fiduciary Net Position
Contribution - employer 127,296 $ $ 120,887 $ 113,517
Net investment income - - -
Benefit payments (127,296) (120,887) (113,517)
Administrative expense - - -
Net change in plan fiduciary
net position - - -
Plan fiduciary net position -
beginning - - -
Plan fiduciary net position -
ending (b) $ - - $ $ -
Net OPEB liability - ending (a)-(b) 6,451,577 $ 5,886,124 $ 5,314,261 $ Covered employee payroll 3,363,000 3,105,000 3,191,154
Net OPEB liability as a percentage
of covered employee payroll 191.8% 189.6% 166.5%
Measurement Period
65 Tuesday, December 16, 2025 Reg CC MTG, Page *242
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes and assessments 9,000,143 $ 9,100,143 9,396,937 296,794 Intergovernmental 3,305,000 3,435,000 3,464,004 29,004
Licenses and permits 1,490,000 1,490,000 1,812,449 322,449 Fines and forfeitures 633,000 633,000 584,451 (48,549)
Investment income 153,000 780,304 1,081,214 300,910
Rental income 260,000 260,000 240,450 (19,550)
Other revenue 152,500 152,500 128,989 (23,511)
Total revenues 14,993,643 15,850,947 16,708,494 857,547 Expenditures:

Current:

General government 5,320,928 5,498,599 4,717,609 780,990 Community development 859,976 1,461,976 1,454,844 7,132 Public works 1,209,782 1,157,632 1,012,203 145,429
Public safety 5,261,663 5,296,663 4,945,450 351,213
Culture and recreation 2,505,459 2,537,612 1,986,424 551,188 Capital outlay 1,830,799 517,250 33,310 483,940
Debt service - Principal - - - -
Debt service - Interest - - - -
Total expenditures 16,988,607 16,469,732 14,149,840 2,319,892 Excess (deficiency) of revenues
over (under) expenditures (1,994,964) (618,785) 2,558,654 3,177,439 Other financing sources (uses):

Transfers in 1,313,055 1,336,976 1,336,976 -
Transfers out (1,530,434) (330,304) (1,530,434) -
Total other financing sources (uses) 982,751 (193,458) (193,458) - Net change in fund balances (1,012,213) (812,243) 2,365,196 3,177,439 Fund balance, beginning of year 11,473,028 11,473,028 11,473,028 - Fund balance, end of year 10,460,815 $ 10,660,785 13,838,224 3,177,439

CITY OF LOMITA
General Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
Budget Amounts
66 Tuesday, December 16, 2025 Reg CC MTG, Page *243
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental $ - - $ 52,407 52,407
Total revenues - - 52,407 52,407
Expenditures:

Capital outlay - - - -
Total expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures - - 52,407 52,407
Other financing sources (uses):

Transfers in - - 54,130 54,130
Total other financing sources (uses) - - 54,130 54,130
Net change in fund balances - - 106,537 106,537
Fund balance (deficit), beginning of year (106,537) (106,537) (106,537) - Fund balance (deficit), end of year (106,537)$ (106,537) $ - 106,537

CITY OF LOMITA
Measure R Highway Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
Budget Amounts
67 Tuesday, December 16, 2025 Reg CC MTG, Page *244
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 468,752 $ 468,752 437,289 (31,463)
Investment income 5,000 5,000 103,020 98,020
Total revenues 473,752 473,752 540,309 66,557
Expenditures:

Capital outlay 300,957 311,360 300,957 -
Total expenditures 311,360 300,957 300,957 -
Net change in fund balances 162,392 172,795 239,352 66,557 Fund balance, beginning of year 2,947,718 2,947,718 2,947,718 - Fund balance, end of year 3,110,110 $ 3,120,513 3,187,070 66,557

CITY OF LOMITA
Proposition C Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
Budget Amounts
68 Tuesday, December 16, 2025 Reg CC MTG, Page *245
69 CITY OF LOMITA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2025
(1) Budgets and Budgetary Accounting
The City prepares its budgets on the modified accrual basis and, accordingly, the budget amounts included in the accompanying financial statements are presented in accordance with generally accepted accounting principles.

Each year, the City Administrator submits a proposed budget to the City Council during early May. The City Council holds budget hearings during May and early June. The final budget is adopted by the City Council during late June. Funds that have irregular activity are not budgeted, hence, not budget is adopted for the Measure R Highway Special Revenue Fund. The legal level of control of which expenditures cannot exceed appropriations is at the functional level. The City Council is informed of expenditures over appropriations and such amounts are informally approved as a part of the bi-monthly review of the demand warrants.

The City holds a mid-year budget review meeting. During the meeting, all budget expenditures are reviewed and projections for the whole year are made.

Unexpended and unencumbered appropriations of the governmental funds automatically lapse at the end of the year.

Tuesday, December 16, 2025 Reg CC MTG, Page *246

SUPPLEMENTARY INFORMATION

Tuesday, December 16, 2025 Reg CC MTG, Page *247
SPECIAL REVENUE FUNDS:

CAPITAL PROJECTS FUNDS:

Measure M Fund - Used to account for street improvement projects on a cost reimbursement basis.

Measure R Fund - Used to account for street improvement projects.

Transportation Development Act Fund - Used to account for funds received from the State for improvements of local streets and roads.

Proposition A Fund - Used to account for the City's share of Proposition A Local Return Funds from County sales tax dollars.

Park Grant Fund - Used to account for the grant funds received for park development and improvements.

Landscape Maintenance Fund - Used to account for assessment funds collected on property tax bills for Landscape Maintenance District #1.

Park Facilities Fund - Used to account for Park Development Tax and QUIMBY Act funds.

Air Quality Plan AB 2766 Fund - Used to account for funds received from the South Coast AQMD that were derived from clean air fees.

Park Athletic Fund - Used to account for user charges for park athletic programs.

Lomita Manor Development Fund - Used to account for the local U.S. HUD conventional housing CLEEP Fund - Used to account for the purchase of specialized equipment and software to enhance public safety.

Capital Improvement Fund - Used to account for the acquisition, construction and improvement of capital facilities and infrastructure. The projects are funded by transfers from the General Fund.

American Rescue Plan Act Fund - Used to account for City's use of emergency and rescue plan activities using ARPA COVID-19 funds received from the Department of Treasury.

Measure W Fund - Used to fund projects dedicated to increase local water supply, improve water quality, and protect public health.

Community Development Block Grant Fund - Used to account for federal grants for programs benefiting low-income persons and/or families.

NON-MAJOR GOVERNMENTAL FUNDS
The following funds have been classified as non-major funds in the accompanying financial statements.

State Gas Tax Fund - Used to account for monies received from the State and County for gas sales.

Tuesday, December 16, 2025 Reg CC MTG, Page *248
American
Rescue Transportation
State Plan Development
Gas Tax Measure M Act Measure R Act
ASSETS
Cash and investments $ 2,255,724 1,510,378 - 906,219 -
Receivables:

Accounts - - - - -
Taxes - - - - -
Due from other governments 176,716 - - - -
Prepaid items - - - - -
Total assets $ 2,432,440 1,510,378 - 906,219 -

LIABILITIES
Accounts payable $ 100,910 - - 9,131 -
Accrued liabilities 4,258 - - - -
Deposits payable - - - - -
Due to other funds - - - - -
Total liabilities 105,168 - - 9,131 -

FUND BALANCES
Nonspendable - - - - -
Restricted 2,327,272 - - - -
Committed - 1,510,378 - 897,088 -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 2,327,272 1,510,378 - 897,088 -
Total liabilities, deferred inflows
and fund balances 2,432,440$ 1,510,378 - 906,219 -
June 30, 2025
Combining Balance Sheet
Non-major Governmental Funds

CITY OF LOMITA
Special Revenue Funds
70 Tuesday, December 16, 2025 Reg CC MTG, Page *249
Community Air Quality
Development Plan Park Landscape Parks
Block Grant Proposition A AB 2766 Grant Maintenance Facilities - 1,503,253 96,429 96,000 21,547 592,868
- - - - - -
- - - - 142 -
113,361 - 7,073 - - -
- - - - - -
1,503,253 113,361 103,502 96,000 21,689 592,868
96,233 24,625 - - 485 -
- 485 - - - -
- - - - - -
- 17,446 - - - -
25,110 113,679 - - 485 -
- - - - - -
1,478,143 (318) 103,502 96,000 21,204 592,868
- - - - - -
- - - - - -
- - - - - -
(318) 1,478,143 103,502 96,000 21,204 592,868
1,503,253 113,361 103,502 96,000 21,689 592,868
Special Revenue Funds
71 Tuesday, December 16, 2025 Reg CC MTG, Page *250
Capital
Projects
Funds
Total
Lomita Non-major
Park Manor Capital Governmental
Athletic Development CLEEP Measure W Improvement Funds
ASSETS
Cash and investments $ 165,832 955,575 6,757 518,592 153,191 8,782,365 Receivables:

Accounts 1,537 60,042 - - - 61,579
Taxes - - - - - 142
Due from other governments - - - - - 297,150
Prepaid items - 13,485 - - - 13,485
Total assets $ 167,369 1,029,102 6,757 518,592 153,191 9,154,721

LIABILITIES
Accounts payable $ 6,998 191,849 - 149,666 - 579,897
Accrued liabilities 471 - - - - 5,214
Deposits payable - 28,877 - - - 28,877
Due to other funds - - - - - 17,446
Total liabilities 7,469 220,726 - 149,666 - 631,434

FUND BALANCES
Nonspendable - 13,485 - - - 13,485
Restricted 159,900 794,891 6,757 368,926 - 5,949,145
Committed - - - - - 2,407,466
Assigned - - - - 153,191 153,191
Unassigned - - - - - -
Total fund balances 159,900 808,376 6,757 368,926 153,191 8,523,287 Total liabilities, deferred inflows
and fund balances 167,369$ 1,029,102 6,757 518,592 153,191 9,154,721

CITY OF LOMITA
Non-major Governmental Funds, Continued
Combining Balance Sheet
June 30, 2025
Special Revenue Funds
72 Tuesday, December 16, 2025 Reg CC MTG, Page *251
American
Rescue Transportation
State Plan Development
Gas Tax Measure M Act Measure R Act
Revenues:

Taxes and assessments $ 586,426 - - - -
Intergovernmental 571,188 371,507 - 327,906 19,276
Licenses and permits - - - - -
Charges for services - - - - -
Investment income 68,507 42,071 - 35,216 -
Rental income - - - - -
Other revenue 109,305 - - - -
Total revenues 1,335,426 413,578 - 363,122 19,276
Expenditures:

Current:

Community services - - - - -
Public works 422,319 - - 5,680 19,276
Culture and recreation - - - - -
Capital outlay 482,327 - - 499,422 -
Total expenditures 904,646 - - 505,102 19,276
Excess (deficiency) of
revenues over
(under) expenditures 430,780 413,578 - (141,980) -
Other financing sources (uses):

Transfers in - - - - -
Transfers out - - (1,336,976) - -
Total other financing
sources (uses) - - (1,336,976) - -
Net change in fund balances 430,780 413,578 (1,336,976) (141,980) - Fund balances, beginning of year 1,896,492 1,096,800 1,336,976 1,039,068 - Fund balances (deficits),
end of year 2,327,272$ 1,510,378 - 897,088 -
For the Year Ended June 30, 2025
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds

CITY OF LOMITA
Special Revenue Funds
73 Tuesday, December 16, 2025 Reg CC MTG, Page *252
Community Air Quality
Development Plan Park Landscape Parks
Block Grant Proposition A AB 2766 Grant Maintenance Facilities - - - - 11,590 2,400
137,046 527,188 27,085 - - -
- - - - - -
- 4,567 - - - -
- 41,161 2,559 - 19,580 577
- - - - - -
- - - - - -
572,916 137,046 29,644 - 12,167 21,980
- 134,224 - - - -
137,366 - - - 7,686 -
- - - - - 35,350
- - - - - -
134,224 137,366 - - 7,686 35,350
438,692 (320) 29,644 - 4,481 (13,370)
- - - 96,000 - -
- - - - - -
- - - 96,000 - -
438,692 (320) 29,644 96,000 4,481 (13,370)
1,039,451 2 73,858 - 16,723 606,238
1,478,143 (318) 103,502 96,000 21,204 592,868
Special Revenue Funds
74 Tuesday, December 16, 2025 Reg CC MTG, Page *253
Capital
Projects
Funds
Total
Lomita Non-major
Park Manor Capital Governmental
Athletic Development CLEEP Measure W Improvement Funds
Revenues:

Taxes and assessments $ - - - - - 600,416
Intergovernmental - 171,193 - 377,922 - 2,530,311
Licenses and permits 84,395 - - - - 84,395
Charges for services - - - - - 4,567
Investment income 4,731 13,456 213 19,430 4,884 252,385 Rental income - 351,309 - - - 351,309
Other revenue - 65,014 - - - 174,319
Total revenues 89,126 600,972 213 397,352 4,884 3,997,702 Expenditures:

Current:

Community services - 601,227 - - - 735,451
Public works - - - 470,867 - 1,063,194
Culture and recreation 61,657 - - - - 97,007
Capital outlay - - - - - 981,749
Total expenditures 61,657 601,227 - 470,867 - 2,877,401 Excess (deficiency) of
revenues over
(under) expenditures 27,469 (255) 213 (73,515) 4,884 1,120,301 Other financing sources (uses):

Transfers in - - - - - 96,000
Transfers out - - - - - (1,336,976)
Total other financing
sources (uses) - - - - - (1,240,976)
Net change in fund balances 27,469 213 (73,515) (255) 4,884 (120,675) Fund balances, beginning of year 132,431 808,631 6,544 442,441 148,307 8,643,962 Fund balances (deficits),
end of year 159,900$ 808,376 6,757 368,926 153,191 8,523,287 Non-major Governmental Funds

CITY OF LOMITA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued For the Year ended June 30, 2025
Special Revenue Funds
75 Tuesday, December 16, 2025 Reg CC MTG, Page *254
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments $ 612,401 586,426 (25,975)
Intergovernmental 530,507 571,188 40,681
Investment income 5,000 68,507 63,507
Other revenue 349,308 109,305 (240,003)
Total revenues 1,497,216 1,335,426 (161,790)
Expenditures:

Current:

Public works 688,210 422,319 265,891
Capital outlay 1,300,500 482,327 818,173
Total expenditures 1,988,710 904,646 1,084,064
Net change in fund balances (491,494) 430,780 922,274
Fund balance, beginning of year 1,896,492 1,896,492 -
Fund balance, end of year 1,404,998$ 2,327,272 922,274

CITY OF LOMITA
State Gas Tax Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
76 Tuesday, December 16, 2025 Reg CC MTG, Page *255
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 371,507 371,507 -
Investment income 42,072 42,071 (1)
Total revenues 413,579 413,578 (1)
Expenditures:

Capital outlay - - -
Total expenditures - - -
Net change in fund balances 413,579 413,578 (1)
Fund balance, beginning of year 1,096,800 1,096,800 -
Fund balance, end of year 1,510,379$ 1,510,378 (1)

CITY OF LOMITA
Measure M Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
77 Tuesday, December 16, 2025 Reg CC MTG, Page *256
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental -$ - -
Excess (deficiency) of revenues
over (under) expenditures - - -
Other financing sources (uses):

Transfers out (1,336,976) (1,336,976) -
Total other financing sources (uses) (1,336,976) (1,336,976) - Net change in fund balances (1,336,976) (1,336,976) -
Fund balance, beginning of year 1,336,976 1,336,976 -
Fund balance, end of year -$ - -

CITY OF LOMITA
American Rescue Plan Act Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
78 Tuesday, December 16, 2025 Reg CC MTG, Page *257
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 351,564 327,906 (23,658)
Investment income 5,000 35,216 30,216
Total revenues 356,564 363,122 6,558
Expenditures:

Current:

Public works 5,680 5,680 -
Capital outlay 499,422 600,000 100,578
Total expenditures 605,680 505,102 100,578
Net change in fund balances (249,116) (141,980) 107,136 Fund balance, beginning of year 1,039,068 1,039,068 -
Fund balance, end of year 789,952$ 897,088 107,136

CITY OF LOMITA
Measure R Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
79 Tuesday, December 16, 2025 Reg CC MTG, Page *258
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 50,000 19,276 (30,724)
Total revenues 50,000 19,276 (30,724)
Expenditures:

Current:

Public works 19,276 19,276 -
Total expenditures 19,276 19,276 -
Net change in fund balances 30,724 - (30,724)
Fund balance, beginning of year - - -
Fund balance, end of year 30,724$ - (30,724)

CITY OF LOMITA
Transportation Development Act Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
80 Tuesday, December 16, 2025 Reg CC MTG, Page *259
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 436,829 137,046 (299,783)
Total revenues 436,829 137,046 (299,783)
Expenditures:

Current:

Public works 436,829 137,366 299,463
Total expenditures 436,829 137,366 299,463
Net change in fund balances - (320) (320)
Fund balance, beginning of year 2 2 -
Fund balance (deficit), end of year 2$ (318) (320)

CITY OF LOMITA
Community Development Block Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
81 Tuesday, December 16, 2025 Reg CC MTG, Page *260
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 565,120 527,188 (37,932)
Charges for services 25,000 4,567 (20,433)
Investment income 4,000 41,161 37,161
Total revenues 594,120 572,916 (21,204)
Expenditures:

Current:

Community services 137,993 134,224 3,769
Total expenditures 137,993 134,224 3,769
Net change in fund balances 456,127 438,692 (17,435)
Fund balance, beginning of year 1,039,451 1,039,451 -
Fund balance, end of year 1,495,578$ 1,478,143 (17,435)

CITY OF LOMITA
Proposition A Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
82 Tuesday, December 16, 2025 Reg CC MTG, Page *261
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 26,000 27,085 1,085
Investment income 500 2,559 2,059
Total revenues 26,500 29,644 3,144
Expenditures:

Current:

Public works 53,000 - 53,000
Total expenditures 53,000 - 53,000
Net change in fund balances (26,500) 29,644 56,144
Fund balance, beginning of year 73,858 73,858 -
Fund balance, end of year 47,358$ 103,502 56,144

CITY OF LOMITA
Air Quality Plan AB 2766 Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
83 Tuesday, December 16, 2025 Reg CC MTG, Page *262
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 66,000 - (66,000)
Total revenues 66,000 - (66,000)
Expenditures:

Current:

Cultural and recreation 738,000 - 738,000
Total expenditures 738,000 - 738,000
Excess (deficiency) of revenues
over (under) expenditures (672,000) - 672,000
Other financing sources (uses):

Transfers in 96,000 96,000 -
Total other financing sources (uses) 96,000 96,000 -
Net change in fund balances (576,000) 96,000 672,000
Fund balance, beginning of year - - -
Fund balance (deficit), end of year (576,000)$ 96,000 672,000

CITY OF LOMITA
Park Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
84 Tuesday, December 16, 2025 Reg CC MTG, Page *263
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments $ 11,738 11,590 (148)
Investment income 100 577 477
Total revenues 11,838 12,167 329
Expenditures:

Current:

Public works 16,500 7,686 8,814
Total expenditures 16,500 7,686 8,814
Net change in fund balances (4,662) 4,481 9,143
Fund balance, beginning of year 16,723 16,723 -
Fund balance, end of year 12,061$ 21,204 9,143

CITY OF LOMITA
Landscape Maintenance Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
85 Tuesday, December 16, 2025 Reg CC MTG, Page *264
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Taxes and assessments $ 5,000 2,400 (2,600)
Investment income 1,000 19,580 18,580
Total revenues 6,000 21,980 15,980
Expenditures:

Current:

Cultural and recreation 323,000 35,350 287,650
Total expenditures 323,000 35,350 287,650
Net change in fund balances (317,000) (13,370) 303,630
Fund balance, beginning of year 606,238 606,238 -
Fund balance, end of year 289,238$ 592,868 303,630

CITY OF LOMITA
Parks Facilities Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
86 Tuesday, December 16, 2025 Reg CC MTG, Page *265
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Licenses and permits $ 55,000 84,395 29,395
Investment income 1,000 4,731 3,731
Other revenue 2,000 - (2,000)
Total revenues 58,000 89,126 31,126
Expenditures:

Current:

Cultural and recreation 64,142 61,657 2,485
Total expenditures 64,142 61,657 2,485
Net change in fund balances (6,142) 27,469 33,611
Fund balance, beginning of year 132,431 132,431 -
Fund balance, end of year 126,289$ 159,900 33,611

CITY OF LOMITA
Park Athletic Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
87 Tuesday, December 16, 2025 Reg CC MTG, Page *266
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 216,647 171,193 (45,454)
Investment income - 13,456 13,456
Rental income 327,732 351,309 23,577
Other revenue 4,079 65,014 60,935
Total revenues 548,458 600,972 52,514
Expenditures:

Current:

Community services 536,927 601,227 (64,300)
Total expenditures 536,927 601,227 (64,300)
Net change in fund balances 11,531 (11,786) (255)
Fund balance, beginning of year 808,631 808,631 -
Fund balance, end of year 820,162$ 808,376 (11,786)

CITY OF LOMITA
Lomita Manor Development Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
88 Tuesday, December 16, 2025 Reg CC MTG, Page *267
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Investment income $ 150 213 63
Total revenues 150 213 63
Expenditures:

Current:

Public safety - - -
Total expenditures - - -
Net change in fund balances 150 213 63
Fund balance, beginning of year 6,544 6,544 -
Fund balance, end of year 6,694$ 6,757 63

CITY OF LOMITA
CLEEP Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
89 Tuesday, December 16, 2025 Reg CC MTG, Page *268
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 374,300 377,922 3,622
Investment income - 19,430 19,430
Total revenues 374,300 397,352 23,052
Expenditures:

Current:

Public works 866,711 470,867 395,844
Total expenditures 866,711 470,867 395,844
Net change in fund balances (492,411) (73,515) 418,896
Fund balance, beginning of year 442,441 442,441 -
Fund balance, end of year (49,970) $ 368,926 418,896

CITY OF LOMITA
Measure W Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
90 Tuesday, December 16, 2025 Reg CC MTG, Page *269
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Investment income $ 15,000 4,884 (10,116)
Total revenues 15,000 4,884 (10,116)
Expenditures:

Capital outlay - - -
Total expenditures - - -
Net change in fund balances 15,000 4,884 (10,116)
Fund balance, beginning of year 148,307 148,307 -
Fund balance, end of year 163,307$ 153,191 (10,116)

CITY OF LOMITA
Capital Improvement Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
91 Tuesday, December 16, 2025 Reg CC MTG, Page *270
Variance with
Final Budget
Budget Actual Positive
Final Amounts (Negative)
Revenues:

Intergovernmental $ 134,000 - (134,000)
Investment income 5,000 84,003 79,003
Total revenues 139,000 84,003 (54,997)
Expenditures:

Current:

Public works 60,500 - 60,500
Capital outlay 885,679 586,439 299,240
Total expenditures 946,179 586,439 359,740
Excess (deficiency) of revenues
over (under) expenditures (502,436) (807,179) 304,743
Other financing sources (uses):

Transfers in 680,304 680,304 -
Total other financing sources (uses) 680,304 680,304 -
Net change in fund balances (126,875) 177,868 304,743
Fund balance, beginning of year 2,805,172 2,805,172 -
Fund balance, end of year 2,678,297$ 2,983,040 304,743

CITY OF LOMITA
Street Improvement Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2025
92 Tuesday, December 16, 2025 Reg CC MTG, Page *271

FIDUCIARY FUNDS
Tuesday, December 16, 2025 Reg CC MTG, Page *272
Railroad Tom Rico
Foundation Memorial Total
ASSETS
Current assets:

Cash and investments 21,586 $ 1,227 22,813
Receivables:

Accounts - 211 211
Total assets 21,797 1,227 23,024

LIABILITIES
Current liabilities:

Accounts payable 747 - 747
Accrued liabilities - 16 16
Total liabilities 763 - 763

NET POSITION
Restricted for foundation 21,034 - 21,034
Restricted for memorial - 1,227 1,227
Total net position 21,034 $ 1,227 22,261

CITY OF LOMITA
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
June 30, 2025
93 Tuesday, December 16, 2025 Reg CC MTG, Page *273
Railroad Tom Rico
Foundation Memorial Total
Additions:

Other revenues 8,968 $ 1 8,969
Total additions 8,968 1 8,969
Deductions:

Miscellaneous 8,728 - 8,728
Total deductions 8,728 - 8,728
Change in net position 240 1 241
Net position, beginning of year 20,794 1,226 22,020
Net position, end of year 21,034 $ 1,227 22,261

CITY OF LOMITA
Combining Statement of Changes in Fiduciary Net Position Private Purpose Trust Funds
For the Year Ended June 30, 2025
94 Tuesday, December 16, 2025 Reg CC MTG, Page *274
Statistical Section
This part of the City of Lomita 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
Financial Trends
These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time.

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

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

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

Operating Information
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 that 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.

Tuesday, December 16, 2025 Reg CC MTG, Page *275
City of Lomita
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2025 2024 2023 2022 2021
Governmental activities:

Net investment in capital assets 24,479,319 $ 22,807,111 $ 22,718,159 $ 22,183,927 $ 20,121,459 $ Restricted 8,154,361 6,864,545 9,594,104 7,593,689 7,018,655 Unrestricted 11,445,286 9,652,385 2,472,644 (1,553,860) (3,058,698) Total governmental activities net position $ 39,324,041 44,078,966 $ 34,784,907 $ 28,223,756 $ 24,081,416 $ Business-type activities:

Net investment in capital assets 24,985,979 $ 22,078,749 $ 21,559,554 $ 20,844,231 $ 18,200,296 $ Restricted - - - - -
Unrestricted 4,241,742 5,657,897 5,846,832 2,673,936 3,602,880 Total business-type activities net position $ 27,736,646 29,227,721 $ 27,406,386 $ 23,518,167 $ 21,803,176 $ Primary government:

Net investment in capital assets 49,465,298 $ 44,885,860 $ 44,277,713 $ 43,028,158 $ 38,321,755 $ Restricted 8,154,361 6,864,545 9,594,104 7,593,689 7,018,655 Unrestricted (1)
15,310,282 15,687,028 8,319,476 1,120,076 544,182
Total primary government net position $ 67,060,687 73,306,687 $ 62,191,293 $ 51,741,923 $ 45,884,592 $

(1) GASB 75 was implemented June 30, 2018. The recording of the City's net OPEB liability resulted in a negative unrestricted net asset balance.

Fiscal Year
95 Tuesday, December 16, 2025 Reg CC MTG, Page *276
2020 2019 2018 2017 2016
$ 20,579,331 20,331,203 $ 19,933,570 $ 17,033,665 $ 18,274,572 $ 4,002,512 5,139,262 2,952,055 2,641,909 3,676,616
(4,384,212) (4,982,190) (4,506,553) (969,590) (726,465) $ 20,197,631 20,488,275 $ 18,379,072 $ 18,705,984 $ 21,224,723 $ $ 17,995,090 18,452,593 $ 16,255,533 $ 15,480,584 $ 16,158,075 $ - - - - 175,847
1,675,608 1,882,888 2,822,396 3,088,795 2,553,377
$ 19,670,698 20,335,481 $ 19,077,929 $ 18,569,379 $ 18,887,299 $ $ 38,574,421 38,783,796 $ 36,189,103 $ 32,514,249 $ 34,432,647 $ 4,002,512 5,139,262 2,952,055 2,641,909 3,852,463
(2,708,604) (3,099,302) (1,684,157) 2,119,205 1,826,912 $ 39,868,329 40,823,756 $ 37,457,001 $ 37,275,363 $ 40,112,022 $

Fiscal Year
96 Tuesday, December 16, 2025 Reg CC MTG, Page *277
City of Lomita
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2025 2024 2023 2022 2021
Expenses:

Governmental activities:

General government 5,177,981 $ 4,663,391 $ 3,651,972 $ 4,615,742 $ 3,516,508 $ Public safety 4,955,004 5,010,478 4,624,434 4,385,150 4,122,368 Public works 1,829,339 1,868,583 1,584,797 1,557,665 2,345,393 Community development 1,626,446 1,371,669 1,022,436 985,098 720,677 Community services 792,565 836,331 1,684,425 701,673 713,824 Culture and Recreation 2,294,040 1,826,108 1,688,139 1,731,965 1,127,697 Interest - 8,475 - - -
Total governmental activities expenses 15,585,035 16,675,375 14,256,203 13,977,293 12,546,467 Business-type activities:

Water Enterprise Operating Expenses 7,902,369 8,064,372 5,168,136 7,011,399 6,746,049 Total business-type activities expenses 7,902,369 8,064,372 5,168,136 7,011,399 6,746,049 Total primary government expenses 24,577,744 23,649,407 19,424,339 20,988,692 19,292,516 Program revenues:

Governmental activities:

Charges for services:

General government 60,000 60,000 60,000 160,000 60,000
Public safety 546,381 653,278 727,215 600,451 392,639
Public works 306,749 207,675 203,713 201,162 210,123
Community development 1,932,276 1,568,916 2,053,254 1,375,786 2,418,941 Community services 355,876 351,857 335,681 313,479 310,261 Cultural and Recreation 268,242 285,069 408,955 381,421 197,198 Operating grants and contributions 3,751,045 3,441,655 5,790,820 5,347,576 3,100,247 Capital grants and contributions 559,585 548,502 723,342 621,557 526,724 Total governmental activities
program revenues 7,116,952 7,780,154 10,302,980 9,001,432 7,216,133 Business-type activities:

Charges for services:

Water 7,968,377 6,972,510 6,108,357 6,344,367 6,433,700 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues 6,972,510 7,968,377 6,108,357 6,344,367 6,433,700 Total primary government
program revenues 14,089,462 15,748,531 16,411,337 15,345,799 13,649,833 Net revenues (expenses):

Governmental activities (8,895,221) (8,468,083) (3,953,223) (4,975,861) (5,330,334) Business-type activities 66,008 (1,091,862) 940,221 (667,032) (312,349) Total net revenues (expenses) (8,829,213) (9,559,945) (3,013,002) (5,642,893) (5,642,683)

Fiscal Year
97 Tuesday, December 16, 2025 Reg CC MTG, Page *278
2020 2019 2018 2017 2016
$ 3,097,344 $ 4,488,587 $ 4,078,593 $ 3,507,091 $ 3,123,342 3,843,357 3,633,645 3,549,113 3,309,683 3,108,606
1,830,924 1,496,818 1,850,296 2,028,211 1,440,942
691,477 683,449 878,350 763,932 816,396
861,971 920,398 926,762 1,480,018 861,319
1,365,464 1,124,928 1,388,433 1,199,067 1,196,613
- - - - -
12,347,825 11,690,537 12,671,547 12,288,002 10,547,218
6,025,969 7,196,441 5,816,026 5,221,613 4,938,566
6,025,969 7,196,441 5,816,026 5,221,613 4,938,566
18,373,794 18,886,978 18,487,573 17,509,615 15,485,784

60,000 60,000 60,000 60,000 60,000
441,691 473,892 386,780 373,933 364,735
228,755 233,172 224,714 193,363 211,337
1,612,396 811,739 992,241 846,262 1,075,688
324,675 330,030 299,478 314,290 306,110
340,053 197,254 430,563 368,800 334,994
2,320,210 2,910,425 2,221,458 2,194,576 1,516,695
516,581 531,777 713,374 779,612 328,664
6,434,576 4,958,074 5,328,608 5,130,836 4,198,223
5,629,363 6,023,257 5,330,322 4,789,815 4,435,449
- - - - -
- - - - -
5,629,363 6,023,257 5,330,322 4,789,815 4,435,449
12,063,939 10,981,331 10,658,930 9,920,651 8,633,672
(5,913,249) (6,732,463) (7,342,939) (7,157,166) (6,348,995) (396,606) (1,173,184) (485,704) (431,798) (503,117)
(6,309,855) (7,905,647) (7,828,643) (7,588,964) (6,852,112)

Fiscal Year
98 Tuesday, December 16, 2025 Reg CC MTG, Page *279
City of Lomita
Changes in Net Position, Continued
Last Ten Fiscal Years
(accrual basis of accounting)
2025 2024 2023 2022 2021
General revenues and other changes in net position:

Governmental activities:

Taxes:

Property taxes 2,256,481 2,093,294 2,112,200 1,990,207 1,893,942 Sales tax 4,975,507 4,866,947 4,944,221 5,040,048 2,637,134 Transient occupancy taxes 180,036 190,861 230,035 133,484 198,839 Refuse Tax 578,806 444,351 346,598 327,045 303,799
Business License Tax 923,996 811,363 678,225 688,309 630,812 Franchise Taxes 383,813 410,744 410,506 384,293 368,062 Other taxes 98,297 125,157 45,942 75,521 283,986
Motor vehicle in lieu, unrestricted 3,115,093 2,944,395 2,789,586 2,633,390 2,520,716 Investment income (loss) 1,128,599 1,226,641 (316,365) (915,599) 13,242 Other general revenues 9,518 1,315,586 1,003,914 31,015 72,943 Gain on sales of property - - - - -
Transfers - - (1,730,488) (1,269,512) -
Total governmental activities 13,650,146 14,429,339 10,514,374 9,118,201 8,923,475 Business-type activities:

Investment income 193,222 186,429 90,970 10,472 7,720
Other 1,231,845 1,235,693 1,126,540 1,102,039 1,772,324 Transfers - - 1,730,488 1,269,512 -
Total business-type activities 1,425,067 1,422,122 2,947,998 2,382,023 1,780,044 Total primary government 15,075,213 15,851,461 13,462,372 11,500,224 10,703,519 Changes in net position
Governmental activities 4,754,925 5,961,256 6,561,151 4,142,340 3,593,141 Business-type activities 1,491,075 330,260 3,888,219 1,714,991 1,467,695 Total primary government 6,246,000 $ 6,291,516 $ 10,449,370 $ 5,857,331 $ 5,060,836 $ Fiscal Year
99 Tuesday, December 16, 2025 Reg CC MTG, Page *280
2020 2019 2018 2017 2016

1,639,059 1,776,468 1,657,387 1,523,888 1,748,361
1,884,061 2,011,963 1,769,925 1,625,596 1,474,499
148,228 185,632 180,278 178,239 150,091
285,240 267,502 258,776 253,270 243,783
650,737 652,617 617,755 544,333 550,167
350,249 347,479 345,511 335,077 400,033
50,165 54,910 51,760 16,000 4,000
2,390,550 2,263,193 2,142,009 2,038,861 1,939,675
202,981 167,410 (40,487) 7,322 138,154
84,428 143,293 33,113 341,477 406
- - - - -
- (800,000) - 2,733 -
7,733,058 7,023,107 7,016,027 6,866,796 6,649,169

78,302 73,877 10,737 9,563 7,447
911,073 964,090 983,517 827,067 733,375
- 800,000 - (2,733) -
989,375 1,837,967 994,254 833,897 740,822
8,722,433 8,861,074 8,010,281 7,700,693 7,389,991
1,819,809 290,644 (326,912) (290,370) 300,174
592,769 664,783 508,550 402,099 237,705
$ 2,412,578 955,427 $ 181,638 $ 111,729 $ 537,879 $

Fiscal Year
100 Tuesday, December 16, 2025 Reg CC MTG, Page *281
City of Lomita
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)

2025 2024 2023 2022 2021
General fund:

Nonspendable 24,270 $ 33,681 $ 22,805 $ 28,777 $ 25,095 $ Committed 85,744 85,744 85,744 85,744 85,744
Assigned 11,878,144 9,771,337 9,022,199 7,334,625 6,304,510 Unassigned 1,850,066 1,582,266 1,531,302 1,105,086 1,098,165 Total general fund 13,838,224 11,473,028 10,662,050 8,554,232 7,513,514 All other governmental funds:

Nonspendable 13,485 9,525 4,030 3,670 3,332
Restricted 5,949,145 5,013,286 4,070,880 3,409,072 2,767,734 Committed 5,594,536 5,083,586 3,834,124 2,841,524 2,850,143 Assigned 3,136,231 2,953,479 2,296,719 1,552,838 1,505,677 Unassigned - 1,230,439 1,230,439 857,321 (106,537)
Total all other governmental funds 14,693,397 14,290,315 11,436,192 8,664,425 7,020,349 Grand Total 28,531,621 25,763,343 22,098,242 17,218,657 14,533,863 Fiscal Year
101 Tuesday, December 16, 2025 Reg CC MTG, Page *282
2020 2019 2018 2017 2016
$ 22,444 24,561 $ 20,384 $ 18,896 $ 499,516 $
85,744 85,744 89,343 89,343 104,132
5,853,930 5,591,510 5,274,835 5,180,075 4,986,341
980,422 980,273 1,002,484 1,544,373 789,516
6,942,540 6,682,088 6,387,046 6,832,687 6,379,505
5,016 4,095 3,053 6,185 1,130
1,382,246 1,879,238 987,480 602,516 1,151,250
1,777,503 2,400,803 1,229,487 1,192,592 1,318,552
837,747 855,145 746,778 877,480 1,210,815
(10,268) (266,125) (505,587) (375,303) (2,785)
3,992,244 4,873,156 2,461,211 2,303,470 3,678,962
10,934,784 11,555,244 8,848,257 9,136,157 10,058,467
Fiscal Year
102 Tuesday, December 16, 2025 Reg CC MTG, Page *283
City of Lomita
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2025 2024 2023 2022 2021
Revenues:

Taxes and assessments $ 9,997,353 $ 9,536,084 $ 9,426,524 $ 9,293,309 $ 6,922,990 Intergovernmental 6,484,011 6,197,146 9,352,488 8,392,801 5,788,221 Licenses and permits 1,896,844 1,565,551 2,112,485 1,315,005 2,428,326 Charges for services 4,567 10,317 8,818 9,466 7,824
Fines and forfeitures 584,451 683,623 818,565 619,001 394,939 Investment income (loss) 1,520,622 1,373,179 (174,784) (899,406) 23,839 Rental income 591,759 585,130 569,171 537,171 493,144
Other 104,677 303,308 404,961 120,377 76,341
Total revenues 21,382,915 20,055,707 22,518,228 19,387,724 16,135,624 Expenditures
Current:

General government 4,717,609 4,739,297 3,961,115 3,654,560 2,909,752 Community development 1,454,844 1,476,064 1,124,403 914,687 685,949 Community services 735,451 832,994 1,681,448 686,419 691,979 Public works 2,075,397 1,755,405 1,307,722 1,371,232 1,345,083 Public safety 4,945,450 5,030,426 4,642,386 4,371,832 4,119,547 Cultural and recreation 2,083,431 1,886,883 1,848,705 1,551,436 1,096,712 Capital outlay 1,902,455 (801,695) 775,131 2,285,223 907,943 Debt service:

Principal retirement - 36,525 41,500 3,823 -
Interest and fiscal charges - 8,475 - - -
Total expenditures 17,914,637 14,964,374 15,382,410 14,839,212 11,756,965 Excess (deficiency) of
revenues over (under)
expenditures 3,468,278 5,091,333 7,135,818 4,548,512 4,378,659 Other financing sources (uses):

Transfers in 2,167,410 807,800 1,382,860 980,164 923,260 Transfers out (2,867,410) (1,100,000) (3,821,828) (2,862,606) (2,323,260) Proceeds from leases - - 182,735 18,724 -
Issuance of bonds - - - - -
Payment to bond escrow agent - - - - -
Total other financing
sources (uses) (700,000) (292,200) (2,256,233) (1,863,718) (1,400,000) Net change in fund balances 2,768,278 4,799,133 4,879,585 2,684,794 2,978,659

0.00% 0.29% 0.28% 0.03% n/a
Fiscal Year
Ratio of total debt service
expenditures to total noncapital
expenditures.
103 Tuesday, December 16, 2025 Reg CC MTG, Page *284
2020 2019 2018 2017 2016
$ 5,578,097 5,619,851 $ 5,390,929 $ 4,929,177 $ 5,036,023 $ 5,808,278 4,784,452 4,604,060 3,713,536 3,715,286
1,768,927 886,378 1,150,494 1,054,795 1,250,947
26,937 20,390 25,384 20,210 19,571
463,291 496,842 444,580 376,733 372,735
247,567 321,521 (31,440) 20,354 147,297
527,172 521,382 511,890 489,831 514,200
233,783 126,436 95,697 756,655 62,772
14,654,052 12,777,252 12,191,594 11,361,291 11,118,831
3,803,130 2,738,871 3,047,279 2,687,690 2,735,363
656,309 663,348 857,609 745,442 799,282
901,046 840,928 908,870 1,464,068 846,556
1,058,516 1,194,563 1,047,337 1,072,359 925,359
3,632,226 3,842,231 3,549,113 3,309,683 3,108,606
1,109,354 1,353,101 1,388,433 1,199,067 1,196,613
1,205,694 532,191 1,608,353 1,768,025 710,564
- - - - -
- - - - -
12,366,275 11,165,233 12,406,994 12,246,334 10,322,343
2,287,777 1,612,019 (215,400) (885,043) 796,488
338,343 12,000 357,616 135,490 339,569
(538,343) (812,000) (430,116) (172,757) (439,569)
- - - - -
- - - - -
- - - - -
(800,000) (200,000) (72,500) (37,267) (100,000)
2,087,777 812,019 (287,900) (922,310) 696,488
n/a n/a n/a n/a n/a
Fiscal Year
104 Tuesday, December 16, 2025 Reg CC MTG, Page *285
City of Lomita
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Taxable Percent Total
Ended Less: Assessed Change Direct Tax
June 30 Secured Unsecured Exemptions 1
Value Residential Income Industrial Total Rate
2015/16 2,014,069,980 31,249,739 2,045,319,719 5.31% 4,579 477 16 5,072 0.10263% 2016/17 2,117,244,522 32,349,456 2,149,593,978 5.10% 4,580 477 15 5,072 0.10263% 2017/18 2,225,454,844 31,629,569 2,257,084,413 5.00% 4,580 475 15 5,070 0.10263% 2018/19 2,351,141,143 35,125,603 2,386,266,746 5.72% 4,598 475 14 5,087 0.10263% 2019/20 2,520,927,188 35,884,762 2,556,811,950 7.15% 4,602 470 14 5,086 0.10263% 2020/21 2,665,742,123 36,097,437 2,701,839,560 5.67% 4,613 473 14 5,100 0.10263% 2021/22 2,729,191,737 34,661,192 2,763,852,929 2.30% 4,632 473 14 5,119 0.10263% 2022/23 2,893,245,881 38,292,998 2,931,538,879 6.07% 4,631 472 14 5,117 0.10263% 2023/24 3,053,698,384 37,128,107 3,090,826,491 5.43% 4,633 473 14 5,120 0.10263% 2024/25 3,229,240,961 34,799,413 3,264,040,374 5.60% 4,641 485 14 5,140 0.10263%

Source: HdL, Coren & Cone
County of Los Angeles, Auditor-Controller Office/Tax Division City Parcel Counts
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 105 Tuesday, December 16, 2025 Reg CC MTG, Page *286
City of Lomita
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 (2)
City Direct Rates:

City Lomita Tax District 1 0.066600 0.066600 0.066600 0.066600 0.066600 0.066600 0.066600 0.066600 0.066550 0.066550 Lomita Waterworks 0.036100 0.036100 0.036100 0.036100 0.036100 0.036100 0.036100 0.036100 0.036080 0.036080 Total City Direct Rate 0.102700 0.102700 0.102700 0.102700 0.102700 0.102700 0.102700 0.102700 0.102630 0.102630 LA County General 0.214700 0.214700 0.214700 0.214700 0.214700 0.214700 0.214700 0.214700 0.214700 0.214700 LA County Other 0.209050 0.209050 0.209050 0.209050 0.209050 0.209050 0.209050 0.209050 0.209110 0.209110 Water Replenishment S.C. 0.000160 0.000160 0.000160 0.000160 0.000160 0.000160 0.000160 0.000160 0.000160 0.000160 LA Sanitary District 0.011090 0.011090 0.011090 0.011090 0.011090 0.011090 0.011090 0.011090 0.011090 0.011090 LA Unified School
District 0.207800 0.207800 0.207800 0.207800 0.207800 0.207800 0.207800 0.207800 0.207830 0.207830 Educational Revenue
Augmentation Fund 0.204800 0.204800 0.204800 0.204800 0.204800 0.204800 0.204800 0.204800 0.204800 0.204800 LA Community College 0.028200 0.028200 0.028200 0.028200 0.028200 0.028200 0.028200 0.028200 0.028200 0.028200 LA County Library 0.021500 0.021500 0.021500 0.021500 0.021500 0.021500 0.021500 0.021500 0.021480 0.021480 Total Prop 13 Rate 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Overlapping Rates:

LA County Bonds 0.051360 0.060230 0.024880 0.043760 0.040160 0.027170 0.046210 0.045990 0.035960 0.035750 LA County Storm Drain - - - - - - - - - -
LA Unified School Bonds 0.128020 0.124220 0.121070 0.113230 0.139930 0.125520 0.123230 0.122190 0.131100 0.129710 Palos Verdes Peninsula - - - - - - - - - -
West Basin MWD 0.007000 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 Voter Approved Rate 0.187950 0.186380 0.149450 0.160490 0.183590 0.156190 0.172940 0.171680 0.170560 0.168960 Total Tax Rate 1.187950 1.186380 1.149450 1.160490 1.183590 1.156190 1.172940 1.171680 1.170560 1.168960

Source: L.A. County Assessor 2024/25 Annual Tax Increment Tables, HdL, Coren & Cone Fiscal Year
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of the Los Angeles Unified School District bonds. 106 Tuesday, December 16, 2025 Reg CC MTG, Page *287
City of Lomita
Principal Property Owners
Current Year and Prior Year
Top Ten
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Lomita & Crenshaw Acquistion LLC 5 c 40,656,062 1.25% 13,859,504 0.45% Weiss Investment Properties LP 2 r 19,331,457 0.59% 18,952,560 0.61% BRFI Lomita LLC 4 c 16,025,539 0.49% 16,672,915 0.54%
Mittal Legacy LP 8 r 12,177,696 0.37% 11,502,416 0.37%
Spectrum Pacific West LLC 4 u 11,801,373 0.36% 14,736,060 0.48% JCM Homes LLC 21 r 10,263,620 0.31% 10,069,802 0.33%
William B Ghadimi Et Al 1 r 10,241,164 0.31% 10,040,358 0.32% Sabra Lomita LP 1 i 10,218,151 0.31% 18,931,012 0.61%
Vista Verde Center LLC 1 c 10,006,858 0.31% 12,008,661 0.39% Spencer Plaza LLC 10 r 9,956,514 0.31% 9,761,299 0.32%

Top Ten Totals 4.62% 150,678,434 136,534,587 4.42%
City Totals $ 3,264,040,374 $ 3,090,826,491
USE:

Commercial c
Institutional i
Residential r
Unsecured u
Vacant v
Source: L.A. County Assessor 2024/25 Combined Tax Rolls and the SBE Non Unitary Tax Roll, HdL, Coren & Cone Parcels Use 2024/25 2023/24
107 Tuesday, December 16, 2025 Reg CC MTG, Page *288
City of Lomita
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2016 2,056,573 3.40% 136,059 69,970 206,028 10.02%
2017 2,158,376 89,443 4.14% 85,746 175,188 8.12%
2018 2,279,687 110,520 4.85% 86,460 196,980 8.64%
2019 2,361,888 81,748 3.46% 89,503 171,251 7.25%
2020 2,550,889 (1) 4.18% 88,844 106,504 195,348 7.66%
2021 2,702,917 113,995 4.22% 98,421 212,416 7.86%
2022 2,803,540 181,539 6.48% 105,687 287,226 10.25%
2023 2,961,666 114,457 3.86% 111,787 226,244 7.64%
2024 3,147,280 118,552 3.77% 112,490 231,042 7.34%
2025 3,353,461 153,462 4.58% 125,859 279,321 8.33%
NOTE: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. (1)
Correction for fiscal year 2020
Source: Los Angeles County Auditor Controller's Office
Collected within the
Fiscal Year of Levy Total Collections to Date
108 Tuesday, December 16, 2025 Reg CC MTG, Page *289
City of Lomita
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year Pension Certificates Total
Ended Revenue Obligation of Leases Subscription Governmental June 30 Bonds Ref Bonds Participation Payable Liabilities Other Activities 2016 n/a n/a n/a n/a n/a n/a -
2017 n/a n/a n/a n/a n/a n/a -
2018 n/a n/a n/a n/a n/a n/a -
2019 n/a n/a n/a n/a n/a n/a -
2020 n/a n/a n/a n/a n/a n/a -
2021 n/a n/a n/a n/a n/a n/a -
2022 n/a n/a n/a 14,901 n/a n/a 14,901
2023 (2) n/a n/a n/a 11,234 141,235 n/a 152,469
2024 (3) n/a n/a n/a 7,528 104,710 n/a 112,238
2025 (3) n/a n/a n/a 3,783 64,993 n/a 68,776
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

In July 2021, the City refunded the 2016 Water Revenue Refunding Bonds with a Private Placement Loan in the amount of $6,081,000
(1) Net of applicable premium or discount
(2) Correction for fiscal year 2022
(3) Correction for fiscal year 2023
Governmental Activities
109 Tuesday, December 16, 2025 Reg CC MTG, Page *290
Total Total Percentage Debt
Bonds Business-type Primary of Personal per
Payable (1) Other Activities Government Income Capita
7,200,000 n/a 7,200,000 7,200,000 8.16% 355
6,985,000 n/a 6,985,000 6,985,000 8.82% 342
6,750,000 n/a 6,750,000 6,750,000 9.90% 326
6,505,000 n/a 6,505,000 6,505,000 10.62% 314
6,255,000 n/a 6,255,000 6,255,000 12.34% 304
5,995,000 n/a 5,995,000 5,995,000 13.05% 293
5,855,549 n/a 5,855,549 5,870,450 13.24% 285
5,521,179 n/a 5,521,179 5,673,648 15.51% 282
5,182,731 n/a 5,182,731 5,294,969 18.14% 261
4,835,109 n/a 4,835,109 4,903,885 19.59% 241
Business-type Activities
110 Tuesday, December 16, 2025 Reg CC MTG, Page *291
City of Lomita
Legal Debt Margin Information
Last Ten Fiscal Years (in thousands of dollars)
2025 2024 2023 2022 2021
Assessed valuation $ 3,090,826,491 3,264,040,374 $ 2,931,538,879 $ 2,763,852,929 $ 2,653,562,437 $ Conversion percentage 25.00% 25.00% 25.00% 25.00% 25.00% Adjusted assessed valuation 816,010,094 772,706,623 732,884,720 690,963,232 663,390,609 Debt limit percentage 15.00% 15.00% 15.00% 15.00% 15.00% Debt limit 115,905,993 122,401,514 109,932,708 103,644,485 99,508,591 Total net dept applicable to limit:

General obligation bonds - - - - -
Legal debt margin 122,401,514 $ 115,905,993 $ 109,932,708 $ 103,644,485 $ 99,508,591 $ Total net debt applicable to the limit
as a percent of debt limit 0% 0% 0% 0% 0%
Lomita Long Term Debt outstanding: 4,903,885 5,294,969 5,673,648 5,870,450 5,995,000 Debt per capita: 241.33 260.58 282.38 284.52 293.43
Debt as a percentage of personal income: 18.55% 18.89% 16.25% 13.54% 13.05% Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% OF MARKET VALUE. Effective with 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The Computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State.

In July 2021, the City refunded the 2016 Water Revenue Refunding Bonds with a Private Placement Loan in the amount of $6,081,000
111 Tuesday, December 16, 2025 Reg CC MTG, Page *292
2020 2019 2018 2017 2016
$ 2,514,269,367 $ 2,386,266,746 $ 2,149,593,978 2,257,084,413 $ 2,045,319,719 $

25.00% 25.00% 25.00% 25.00% 25.00%
596,566,687 628,567,342 564,271,103 537,398,495 511,329,930

15.00% 15.00% 15.00% 15.00% 15.00%
89,485,003 94,285,101 84,640,665 80,609,774 76,699,489
- - - - -
$ 89,485,003 94,285,101 $ 84,640,665 $ 80,609,774 $ 76,699,489 $ 0% 0% 0% 0% 0%
6,505,000 6,255,000 6,750,000 6,985,000 7,200,000
313.71 304.44 325.85 342.35 354.85

12.34% 10.62% 9.90% 8.82% 8.16%
112 Tuesday, December 16, 2025 Reg CC MTG, Page *293
City of Lomita
Pledged Revenue Coverage
Last Ten Years
Fiscal Year Less Net
Ended Water Operating Available
June 30 Revenue* Expenses** Revenue Principal Interest Total Coverage 2016 $ 5,168,824 $ 4,032,400 $ 1,136,424 $ 170,000 $ 332,113 $ 502,113 2.26 2017 $ 5,616,882 $ 4,321,380 $ 1,295,502 $ 215,000 $ 251,550 $ 466,550 2.78 2018 $ 6,313,840 $ 4,858,095 $ 1,455,744 (1) $ 227,013 235,000 $ 462,013 $ 3.15 2019 6,540,437 $ 5,063,714 $ 1,476,723 $ 245,000 $ 219,375 $ 464,375 $ 3.18 2020 6,921,842 $ 5,486,250 $ 1,435,593 $ (2) $ 211,413 250,000 $ 461,413 $ 3.11 2021 8,206,024 $ 5,764,712 $ 2,441,312 $ 260,000 $ 203,288 $ 463,288 $ 5.27 2022 7,446,407 $ 6,421,035 $ 1,025,372 $ 337,000 $ 127,129 $ 464,129 $ 2.21 2023 7,234,936 $ 4,950,569 $ 2,284,367 $ 328,000 $ 137,008 $ 465,008 $ 4.91 2024 8,208,203 $ 6,962,410 $ 1,245,793 $ 332,000 $ 129,034 $ 461,034 $ 2.70 2025 9,200,222 $ 7,673,032 $ 1,527,190 $ 350,000 $ 112,663 $ 462,663 $ 3.30 * Excludes interest income
** Excludes depreciation and interest income
Notes: Details regarding the City's Water Fund outstanding debt can be found in the notes to the financial statements.

In July 2021, the City refunded the 2016 Water Revenue Refunding Bonds with a Private Placement Loan in the amount of $6,081,000
(1)
Correction for fiscal year 2018
(2)
Correction for fiscal year 2020
Source: City of Lomita, Administrative Services Department - Finance Certificates of Participation
Debt Service
113 Tuesday, December 16, 2025 Reg CC MTG, Page *294
City of Lomita
Direct and Overlapping Debt
City Assessed Valuation $ 3,264,040,374
Redevelopment Agency Incremental Valuation -
Total Assessed Valuation $ 3,264,040,374
Estimated
Share of
Percentage Outstanding Overlapping
Applicable 1 Debt 6/30/25 Debt
Overlapping Tax and Assessment Debt:

Metropolitan Water District 0.080% $ 17,155,000 13,724
LA Community College District 0.275% 4,919,505,000 13,528,639 LA Unified School District 0.336% 11,745,405,000 39,464,561 Total Gross Overlapping Tax and Assessment Debt 16,682,065,000 53,006,924 Less: LA Unified School District supported general obligation bonds - 1,549,734 Total Gross Overlapping Tax and Assessment Debt 16,682,065,000 51,457,190 Overlapping General Fund Debt:

LA County General Fund Obligations 0.155% 3,036,637,390 $ 4,706,788 LA County Superintendent of Schools Certificates of Participation 0.155% 2,331,775 3,614 LA Unified School District Certificates of Participation 0.336% 225,010,000 756,034

Total Overlapping General Fund Debt 5,466,436 3,263,979,165 Total Overlapping Debt $ 56,923,625 19,946,044,165
City of Lomita Direct Debt 68,776
Total Direct and Overlapping Debt 1 $ 56,992,401
Notes:
1 For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

Source: California Municipal Statistics, Inc., Los Angeles County Assessor's Office June 30, 2025
114 Tuesday, December 16, 2025 Reg CC MTG, Page *295
Business Type Tax Payers Business Type
1 ARCO Service Stations 99 Cents Only Variety Stores
2 ARCO AM/PM Service Stations Albertsons Grocery Stores 3 Auto Zone Automotive Supply Stores Arco Service Stations 4 Battaglia's Title Building Materials Arco AM/PM Service Stations 5 Bites & Bashes Casual Dining AutoZone Automotive Supply Stores 6 California Pro Sports Sporting Goods/Bike Stores Big Lots Variety Stores 7 Car Bros Automotive Used Automotive Dealers California Pro Sports Sporting Goods/Bike Stores 8 CVS Pharmacy Drug Stores CVS Pharmacy Drug Stores
9 Discount Pool & Spa Supply Specialty Stores Cycle Gear Boats/Motorcycles 10 Eat Fantastic Fast-Casual Restaurants Discount Pool & Spa Supply Specialty Stores 11 Enterprise Rent A Car Transportation/Rentals Enterprise Rent A Car Transportation/Rentals 12 Harbor Freight Tools Building Materials Haggen Grocery Stores 13 Hot N Tot Casual Dining Harbor Freight Tools Building Materials 14 Jims Auto Sales Used Automotive Dealers Hot N Tot Casual Dining 15 Little Caesars Quick-Service Restaurants Jims Auto Sales Used Automotive Dealers 16 Lomita Feed Store Gardening/Agricultural Supplies Lees Tires Automotive Supply Stores 17 Lomita Shell Service Stations Lomita Feed Store Gardening/Agricultural Supplies 18 Popeyes Louisiana Kitchen Quick-Service Restaurants Lomita Shell Service Stations 19 Shell Service Stations Pacific Coast Hobbies Specialty Stores 20 Sushi Delight Casual Dining Redondo Beach Towing Transportation/Rentals 21 Szechwan Chinese Casual Dining Shell Service Stations 22 Taco Bell/Pizza Hut Quick-Service Restaurants Sizzler Casual Dining 23 Target Discount Dept Stores Szechwan Chinese Casual Dining 24 Thompson Building Materials Building Materials Taco Bell/Pizza Hut Quick-Service Restaurants 25 Warehouse Discount Center Electronics/Appliance Stores Thompson Building Materials Building Materials -Account for 57.97% -Account for 58.72%
of the total sales tax collected. of the total sales tax collected. *** The names are listed in alphabetical order, not sales tax volume.

Source: HdL Companies, State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office Period: January 2024 Thru December 2024
Tax Payers
Calendar Year 2024
City of Lomita
Top 25 Sales Tax Producers
(Miscellaneous Information)
Current Calendar Year and Nine Years Ago
Calendar Year 2015
115 Tuesday, December 16, 2025 Reg CC MTG, Page *296
City of Lomita
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capital Lomita
Calendar City of Lomita Median Income Personal Unemployment Year Population (1) Age (2) (in thousands) (3) Income (4) Rate (5) 2016 20,290 40.3 587,263 28,943 4.8%
2017 20,403 40.8 615,782 30,180 3.7%
2018 20,715 40.4 668,303 32,261 4.6%
2019 20,736 40.7 690,910 33,275 4.3%
2020 20,549 40.1 771,963 37,566 16.5%
2021 20,431 40.1 782,242 38,287 5.6%
2022 20,633 40.5 777,527 37,683 2.3%
2023 20,092 39.5 880,182 43,807 2.2%
2024 20,320 40.5 960,538 47,270 2.1%
2025 20,407 39.0 908,656 44,526 2.8%
Source: (1) California State Department of Finance
(2) U.S. Department of Commerce Bureau of Economic Analysis, Census Bureau (3) U.S. Department of Commerce Bureau of Economic Analysis, Census Bureau (4) U.S. Department of Commerce Bureau of Economic Analysis, Census Bureau (5) California Employment Development Department
116 Tuesday, December 16, 2025 Reg CC MTG, Page *297
City of Lomita
Principal Employers
Current Year and Nine Years Ago
Percent of Percent of
Number of Total Number of Total
Employer Business Type Employees Employment Employees Employment Lomita Post-Acute Care Center Nursing Facility 124 1.18% 98 0.84% City of Lomita Government 99 0.94% 102 0.88%
Target Retail 75 0.71% n/a n/a
Kaiser Permanente Medical 82 0.78% n/a n/a
Palos Verdes Health Care Center Nursing Facility 50 0.48% 49 0.42% Nishiyamato Academy of California Education 40 0.38% n/a n/a Thompson Building Materials Building 35 5.65% 40 0.34%
CVS, LLC Retail 31 5.01% 42 0.36%
Grocery Outlet Grocery 30 0.29% n/a n/a
Travers Tree Service Service 30 0.29% 60 0.52%
Starbucks Corporation Tea/Coffee Shop 23 0.22% n/a n/a

Total Top Ten Employers 619 391
Total City Employment 10,500 11,600
NOTE: Non-Governmental Employers.

Several potential businesses that may qualify for Top 10 ranking. However, current employee counts were unattainable at the time of report preparation. Previous historical data is not available.

Source: City of Lomita, Economic Development Department State of California, Employment Development Department
2025 2016
117 Tuesday, December 16, 2025 Reg CC MTG, Page *298
City of Lomita
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 (2) General government 20 20 20 12 14 12 12 9 12 11
Public safety (1) - - - - - - - - - -
Public works 19 16 16 12 13 10 9 10 9 7
Community Services 5 5 5 5 5 5 6 4 10 8
Water 7 7 7 6 7 7 7 7 7 6
Community Development 8 6 5 5 3 4 3 6 6 4
Parks and Recreation 40 41 37 37 34 37 42 49 46 43
Total 99 95 90 77 76 75 79 85 90 79
(1) Police and fire services are provided by Los Angeles County. (2) Correction for fiscal year 2016.

Source: City of Lomita, Administrative Services Department - Finance Full-Time and Part-time Employees as of June 30
118 Tuesday, December 16, 2025 Reg CC MTG, Page *299
City of Lomita
Operating Indicators
by Function
Last Ten Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
(1) Police:

Arrests 476 398 513 477 663 815 994 865 913 n/a
Parking citations issued 9038 9588 9838 9001 7368 6001 6612 6201 5564 5380 (2) Fire:

Number of emergency calls 1969 2017 2006 1804 1016 1740 2920 1827 1816 1770 Inspections 554 514 804 899 0 200 1488 763 579 n/a
Public works:

Street resurfacing (miles) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Parks and recreation:

Number of recreation classes 117 205 184 186 18 331 319 278 328 295 Number of facility rentals 308 295 378 403 10 179 407 475 402 344 Water:

New connections - - - - - - - - - -
Average daily consumption
(thousands of gallons) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Sewer:

New connections n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Average daily sewage treatment
(thousands of gallons) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a (1) Deputy Sheriffs and Community Service Officers are provided through a contract with the Los Angeles County Sheriff's Department. (2) Fire Protection and Fire Personnel are provided through a contract with the Los Angeles County Fire Department.

Due Covid-19 pandemic, business inspections are on hold and there no Brush inspections. n/a Data is unavailable to include in this report.

Source: City of Lomita, Administrative Services Department Los Angeles County Fire Department
119 Tuesday, December 16, 2025 Reg CC MTG, Page *300
City of Lomita
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
(1) Police:

Stations 1111111111
(2) Fire:

Fire stations 1111111111
Public works:

Streets (miles)(5) 31.90 31.90 31.90 31.90 31.90 33.20 31.00 31.00 31.00 31.00 Streetlights 58 58 58 58 58 58 58 58 58 58
Traffic signals n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Parks and recreation:

Parks 7 7 7 7 7 7 7 7 7 7
Rail Road Museum 1 1 1 1 1 1 1 1 1 1
Community centers 1 1 1 1 1 1 1 1 1 1
Water System :

Length of Pipes (LF)(3) 228,975 228,975 228,975 228,975 228,975 228,975 228,015 228,015 228,015 228,015 Number of Pump Stations 3 3 3 3 3 3 3 3 3 3
Number of Catch Basin(6) 69 69 69 69 69 72 69 69 42 42
Number of Service Connection 4,357 4,357 4,357 4,357 4,357 4,357 4,314 4,314 4,312 4,241 Sewer System:

Length of Pipes (LF)(4) 188,415 188,415 188,415 188,415 188,415 188,415 173,931 173,931 173,931 173,931 Number of manholes 883 883 883 883 883 883 882 882 882 882 Maximum daily treatment capacity
(thousands of gallons) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a (1) Deputy Sheriffs and Community Service Officers are provided through a contract with the Los Angeles County Sheriff's Department. (2) Fire Protection and Fire Personnel are provided through a contract with the Los Angeles County Fire Department. (3) Corrected length of pipes in lateral feet to match our 2019 Water Loss Audit Report, 2015 Water Master Plan, 2004 Water Master Plan. (4) Corrected length of pipes in lateral feet to match our 2016 Sewer System Management Plan (5) Corrected miles to match our 2020 Pavement Management Plan (6) Corrected catch basins - City of Lomita Public Works performed field check; three basins either erroneous or duplicates. n/a Data is unavailable to include in this report.

Source: City of Lomita, Administrative Services Department Los Angeles County Fire Department
Los Angeles County Department of Public Works
Fiscal Year
120 Tuesday, December 16, 2025 Reg CC MTG, Page *301
City of Lomita
Water Department
Water Sold by Type of Customer
Last Ten Fiscal Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Type of Customer:

Residential 4,001 (2) 4,057 4,003 (2) 3,970 (2) 4,004 (1) 3,966 (2) 3,975 (1) 3,971 (1) 3,960 (1) 3,849 (2) Schools 21 21 21 21 21 21 25 25 21 21 (1)
Commercial 254 (2) 286 (1) 283 (1) 281 (1) 279 279 (1) 270 (1) 266 261 246 Churches 27 32 31 31 30 (2) 31 31 31 32 32
Government 72 72 72 72 72 72 (1) 17 17 14 12
City 18 18 18 18 18 18 19 19 18 15
Total 4,393 4,486 4,428 4,393 4,424 4,337 4,329 4,306 4,175 4,234

Total direct rate
per 748 gallons 5.70 5.35 5.03 4.79 4.79 4.79 4.43 4.12 3.81 3.53 (2) Vacancies
(3) Type correction
Source: City of Lomita, Administrative Services Department - Finance

(1) New development
Fiscal Year
121 Tuesday, December 16, 2025 Reg CC MTG, Page *302
City of Lomita
Water Department
Water Rates
Last Ten Fiscal Years
Fiscal Bi-Monthly Rate per
Year Ended Base 748
June 30 Rate Gallons
2016 36.90 3.53
2017 39.73 3.81
2018 42.90 4.12
2019 46.78 4.43
2020 50.31 4.79
2021 50.31 4.79
2022 50.31 4.79
2023 (2) 5.03 53.81
2024 57.31 5.35
2025 61.03 5.70
NOTE:
(1) A new water rate structure went into effect March 1, 2015. (2) A new water rate structure went into effect January 1, 2023.

Rates are based on 5/8" meter, which is the standard household meter size. 122 Tuesday, December 16, 2025 Reg CC MTG, Page *303
City of Lomita
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years (dollars in thousands, except per capita) Percentage
Fiscal Year Tax Pension Certificates of Actual
Ended Revenue Allocation Obligation of Value Per
June 30 Bonds Bonds Ref Bonds Participation Total of Property (1) Capita (2) 2016 n/a n/a n/a n/a - n/a n/a
2017 n/a n/a n/a n/a - n/a n/a
2018 n/a n/a n/a n/a - n/a n/a
2019 n/a n/a n/a n/a - n/a n/a
2020 n/a n/a n/a n/a - n/a n/a
2021 n/a n/a n/a n/a - n/a n/a
2022 n/a n/a n/a n/a - n/a n/a
2023 n/a n/a n/a n/a - n/a n/a
2024 n/a n/a n/a n/a - n/a n/a
2025 n/a n/a n/a n/a - n/a n/a
(1) See Schedule 6 for property value data.
(2) Population data can be found in Schedule 16.

Ten years of data is not available.

General Bonded Debt Outstanding
123 Tuesday, December 16, 2025 Reg CC MTG, Page *304
City of Lomita
Single Audit Report on Schedule of Expenditures of Federal Awards June 30, 2025
Tuesday, December 16, 2025 Reg CC MTG, Page *305

CITY OF LOMITA
Single Audit Report on Schedule of Expenditures of Federal Award Programs June 30, 2025

TABLE OF CONTENTS
Page
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 1
Report on Compliance for Each Major
Program and on Internal Control Over Compliance
Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Notes to Schedule of Expenditures of Federal Awards 7
Schedule of Findings and Questioned Costs 8
Summary Schedule of Prior Audit Findings 9
Tuesday, December 16, 2025 Reg CC MTG, Page *306
438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
1 Honorable Mayor and City Council
City of Lomita
Lomita, California
INDEPENDENT AUDITORS’ 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
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, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Lomita, California (City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City of Lomita’s basic financial statements, and have issued our report thereon dated December 11, 2025.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Lomita’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 City of Lomita’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Lomita’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 entity’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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

Tuesday, December 16, 2025 Reg CC MTG, Page *307
2 Honorable Mayor and City Council
City of Lomita
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Lomita’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.

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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
December 11, 2025
Gruber and Lopez, Inc.

Tuesday, December 16, 2025 Reg CC MTG, Page *308
438 Old Newport Blvd, Newport Beach, CA 92663
Phone (949) 346-2900 –www.gruberlopezinc.com
3 Honorable Mayor and City Council
City of Lomita
Lomita, California

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND

ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Lomita CA’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of City of Lomita CA’s major federal programs for the year ended June 30, 2025. City of Lomita CA’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, City of Lomita CA complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of City of Lomita CA and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of City of Lomita CA’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City of Lomita CA’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Lomita CA’s compliance based on our audit. 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 generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Tuesday, December 16, 2025 Reg CC MTG, Page *309
4 Honorable Mayor and City Council
City of Lomita
Page Two
Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City of Lomita CA’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, 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 City of Lomita CA’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of City of Lomita CA’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City of Lomita CA’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Tuesday, December 16, 2025 Reg CC MTG, Page *310
5 Honorable Mayor and City Council
City of Lomita
Page Three
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Lomita CA, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City of Lomita CA’s basic financial statements.

We issued our report thereon dated December 11, 2025, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
December 11, 2025
Gruber and Lopez, Inc.

Tuesday, December 16, 2025 Reg CC MTG, Page *311
Federal
Federal Program Award Amount
Federal Grantor/ Assistance Identification Reimburseable Provided to Pass-through Grantor/Program Listing Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Passed through the Community Development Commission of the County of Los Angeles:

Community Development Block Grant 14.218 D96361 43,778 $ - Community Development Block Grant 14.218 D96370 20,044 - Direct assistance:

Low Rent Public Housing 14.850 CA139-001-01J 171,193 -
Capital Grant Fund Program 14.872 CA16-P139-501-01 - -
-
Total U.S. Department of Housing and Urban Development 235,014 - U.S. Department of Transportation
Passed through the State of California:

Coronavirus State and Fund Recovery Funds 21.027 - 1,336,976 - Total U.S. Department of Transportation 1,336,976 * -
U.S. Department of Homeland Security
Passed through the State of California:

Hazard Mitigation Grant 97.039 DR4407-PJ0418 670,095 -
Hazard Mitigation Grant 97.039 DR4482-PL0647 26,248 -
Total U.S. Department of Homeland Security 696,343 -
U.S. Department of Education
Passed through the State of California:

Coronavirus Response and Relief Supplemental 84.425R CRASL-5389(008) 10,621 - Appropriations Act of 2021
Total U.S. Department of Education 10,621 -
Total Federal Awards $ 2,278,954 -
* - Denoted major program.

Schedule of Expenditures of Federal Awards

CITY OF LOMITA
For the Year Ended June 30, 2025
See accompanying notes to schedule of expenditures of federal awards. 6 Tuesday, December 16, 2025 Reg CC MTG, Page *312
7 CITY OF LOMITA
Notes to the Schedule of Expenditures of Federal Awards June 30, 2025
(1) Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards
The financial reporting entity, as defined by Governmental Accounting Standard Board (GASB), consists of the primary government, which is the City of Lomita, California (City), entities for which the primary government is financially accountable, and other entities for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

The City Council acts as the governing body and is able to impose its will on the following entities by establishing financial accountability:
 Lomita Public Financing Authority  Lomita Manor Housing Authority  Lomita Railroad Foundation, Inc. (a) Scope of Presentation
The accompanying schedule presents only the expenditures incurred by the City of Lomita (City) that are reimbursable under federal programs of federal agencies providing financial assistance. For purposes of this schedule, financial assistance includes both federal financial assistance received directly from a federal agency and expended, as well as federal funds received indirectly by City of Lomita from a non-federal agency and expended. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenses in excess of the maximum federal reimbursement authorized or the portion of program expenses that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. (b) Basis of Accounting
Funds received under the various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual basis of accounting for governmental funds. The accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Office of Management and Budget Uniform Grant Guidance).
(c) De Minimus Indirect Cost Rate
The City elected to use the 10% de minimus indirect cost rate for the year ended June 30, 2025, however, no indirect cost rates were charged to any federal programs. (d) Subrecipients
There were no payments to subrecipients for the year ended June 30, 2025.

Tuesday, December 16, 2025 Reg CC MTG, Page *313
8 CITY OF LOMITA
Schedule of Findings and Questioned Costs
Year ended June 30, 2025
Summary of Auditors’ Results
A) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS

1. An unmodified report was issued by the auditors on the financial statements of the auditee.

2. There were no material weaknesses in internal control nor were there any significant deficiencies.

3. There were no instances of noncompliance or other matters that were required to be reported under Government Auditing Standards.
(B) Findings and Questioned Costs for Federal Awards as Defined in 2 CFR 200.515(d)

4. There were no material weaknesses or significant deficiencies in internal control over federal major programs of the auditee.

5. An unmodified report was issued by the auditors on compliance for federal major programs.

6. The audit disclosed no audit findings of federal awards required by the auditors to be reported under 2 CFR 200.515(d)

7. The major federal program of the auditee was the: (1) Assistance Listing #21.027 U.S.

Department of Treasury – Corona Virus State and Local Fiscal Recovery Funds.

8. The dollar threshold used to distinguish Type A and Type B programs was $750,000 under 2 CFR 200.518 (b) (1).

9. The auditee was considered a low risk auditee as defined by 2 CFR 200.518 for the year ended June 30, 2025 for purposes of determining major programs.

Tuesday, December 16, 2025 Reg CC MTG, Page *314
9 CITY OF LOMITA
Summary Schedule of Prior Year (June 30, 2023) Audit
Findings Year ended June 30, 2025
There were no findings noted for fiscal year June 30, 2023 that required follow up procedures.

Tuesday, December 16, 2025 Reg CC MTG, Page *315
1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Lina Hernandez, Assistant City Manager
MEETING DATE: December 16, 2025
SUBJECT: Adoption of Revised Citywide Street Sweeping Service Schedules based on Established Solid Waste Collection Schedules

RECOMMENDED ACTION
Adopt Resolution 2025-39 authorizing modifications to the street sweeping service schedules and adopt the revised sweeping maps, along with the previously approved solid waste collection maps as the final maps; Appropriate $46,189 plus 10% contingency of $4,619 for a $50,808 not to exceed total for project and communication materials; and, authorize the City Manager or designee to implement these changes effective April 1, 2026.

BACKGROUND
In response to growing operational challenges, residential complaints, and the need to meet regulatory stormwater discharge requirements, a Street Sweeping Program Ad Hoc Committee consisting of two members of the City Council, was established in June 2020 to evaluate the existing program, identify necessary improvements, and provide staff with ongoing feedback and guidance as needed.

Several factors prompted the need to revise and enhance the street sweeping program.

Key drivers included reducing the amount of trash and debris accumulating in the roadway network and ensuring compliance with City Council policy requiring all streets to be posted and swept at least twice per month, per Resolution 2007-68. The City must also meet National Pollutant Discharge Elimination System (NPDES) and Municipal Separate Storm Sewer System (MS4) permit requirements. Additional goals included, minimizing the impacts on residents and improve parking availability wherever feasible.

Resident Concerns

CITY OF LOMITA

CITY COUNCIL REPORT
Item No. 9c
Tuesday, December 16, 2025 Reg CC MTG, Page *316
2 Residential concerns have increased, particularly related to scheduling conflicts between solid waste collection and street sweeping, excessive debris in the streets, and limited parking during sweeping hours. Currently, 95 streets remain unposted, resulting in inconsistent coverage, as sweepers can service these locations only when time and parking conditions allow. Other challenges include solid waste bins obstructing sweeper access and the incremental addition of new streets to routes without coordinated planning, leading to inefficiencies and gaps in service.

Previous Action Taken
At its meeting on July 5, 2022, the City Council adopted Resolution 2022-28 establishing Priority A, B, and C streets based on the volume of debris generated throughout the City to improve street sweeping service levels and compliance requirements. Resolution 2022-28 resulted in revised street sweeping service maps that were designed to address operational challenges such as conflicts with school zones and pick-up/drop-off times, limited parking availability during sweeping, overlaps between sweeping and trash collection schedules, and inconsistencies in coverage in certain high priority areas. Many non-posted City streets, alleys, and parking lots were added to the program as these areas are serviced as field teams are able.

Priority A streets, consisting primarily of arterial streets, were designated as the highest debris-generating areas and scheduled for weekly sweeping. Priority B streets, generally residential streets with moderate debris accumulation, were scheduled for sweeping twice per month. Priority C streets, including alleys, City parking lots, and the smallest streets with low debris accumulation, were scheduled for sweeping once per month. The resolution also repealed Resolution 2007-68, which had required all City streets to be swept a minimum of twice per month to comply with the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) permit.

At its meeting on February 21, 2023, the City Council awarded street sweeping services to Athens Services and, on September 5, 2023 approved an amendment with Athens Services to consolidate street sweeping and solid waste collection services.

DISCUSSION
At its meeting on April 16, 2024, the City Council adopted Resolution 2024-10 authorizing modifications to the solid waste collection schedule from three to five days per week and updating the street sweeping Priority A, B, and C maps originally established through Tuesday, December 16, 2025 Reg CC MTG, Page *317
3 Resolution 2022-28. These updates were intended to better align street-sweeping schedules with the revised solid waste collection days resulting from consolidation of service agreements with Athens Services, consistent with the City’s goal of improving street-sweeping efficiency by reducing the presence of trash bins at the curb.

In August 2024, City staff began installing poles and signage indicating the new street sweeping parking restrictions in preparation for full implementation of the new street sweeping schedule.

During the rollout, field staff identified additional conflicts, and residents submitted requests for neighborhood-specific revisions. Key concerns included:
• Areas with narrow sidewalks (four feet or less) where the placement of signposts would create Americans with Disabilities Act (ADA) accessibility issues. • The Rolling Ranchos Tract, which has a single point of access and can be swept on same day and time, significantly reducing the number of signs and parking restrictions.
• The “Pines” neighborhood, which experiences significant tree-related debris and requires additional sweeping, particularly in the fall. • Numerous narrow, dead-end streets throughout City that make efficient street sweeping difficult.

Overlooked conflicts with trash pickup service and limited parking availability. To address these concerns comprehensively, the City commissioned an engineering study to evaluate the proposed sweeping and trash pickup schedules. The consultant’s recommendations were completed in November 2024.

The Street Improvement Ad Hoc Committee (formerly the Street Sweeping Ad Hoc Committee formed June 2020) met on October 27, 2025 to review the revised maps.

Minor adjustments, including additional missed carryover segments from the previous maps, were forwarded to Athen Services for operational review and further map updates.

Summary of the Latest Modifications since 2024
• Remove west and east labels for Lomita Pines streets. Both sides are to be swept every week.
• Remove west and east labels for Rolling Ranchos streets. Both sides are to be swept every week.
• Shift 6:00 a.m.- 8:00 a.m. residential streets time windows to comply with City noise ordinances to minimize residential streets being swept before 8:00 a.m. • Add street segments that were not carried over from the previously approved City maps to the Athens maps
Tuesday, December 16, 2025 Reg CC MTG, Page *318
4 • Maintain a four (4) hour window parking restriction at the narrow southern cul-desac end of Viana Avenue to allow sufficient space for the street sweeping truck to safety turn
• Maintain Fridays 6:00 a.m. – 8:00 a.m. for Western Avenue and Fridays 8:00 a.m. -10:00 a.m. for Palos Verdes Drive to preserve availability for the Harbor Hills Housing complex
• Revert to two (2) hour street sweeping parking restriction windows.

The arterial streets previously included in the A-level map (Resolutions 2022-28 and 2024-10) have been integrated into the B-level maps for Wednesday, Thursday, and Friday, distributing services across three days rather than concentrating it solely on Friday, while maintaining the weekly sweeping schedule. The C-level will continue to include alleys and City parking lots to be swept once per month.

B-level areas scheduled for twice-monthly sweeping will follow a rotation along each street: the north and west sides of the street will be swept on the 1st and 3rd of each month, the south and east sides of the street will be swept on the 2nd and 4th of each month, occurring on either Wednesday, Thursday, or Friday as scheduled. Areas scheduled for C-level once-monthly sweeping will be serviced on Thursdays.

Next Steps
With approval by the City Council, the Resolution will authorize staff to implement the revised street sweeping schedule, starting with the installation of poles and signage, and begin conducting extensive public outreach in collaboration with Athens Services.

Community outreach will utilize all available communication channels, including:
• The new City app Lomita Connect
• A dedicated webpage on the City’s website
• Notices to be placed on vehicles by the City’s Community Safety Officers • Social media, including Facebook, Instagram, X, and NextDoor • Bi-weekly electronic newsletter
• The Spring hardcopy newsletter mailed to all Lomita addresses by mid-February • At least one traffic message board to be rotated throughout the City • Inserts in the City’s March water bill
• Temporary, removable decals on the street sweeping signs during the grace period with a QR code to our dedicated website.
• Mailed postcards with QR codes linking to Athens’ forthcoming address-based lookup tool to help residents determine their service days The solid waste collection service schedule, attached as Exhibit B to this report, which expanded service from three to five days per week as approved through Resolution 2024- 10 will remain unchanged. The City and Athens Services will coordinate to implement the changes by April 1, 2026, after a grace period including covering the street sweeping signage to minimize confusion for residents and allow time to adjust to the changes to Tuesday, December 16, 2025 Reg CC MTG, Page *319
5 street sweeping and solid waste collection services. Staff will also coordinate with contractors working on street improvement projects to ensure alignment with the new services schedules.

FISCAL IMPACT
If approved by the City Council, expenses for signage, hardware, and supplies are estimated at $37,689 for the next phase of project implementation. It is estimated the communications division will need $8,500 to purchase 350 temporary decals for the street signs, 20,000 notices with the QR code to hand out, and social media boosts. Expenses total $46,189 plus 10% contingency of $4,619 for a $50,808 not to exceed total to be appropriated. The anchors and poles were previously purchased in FY 24-25 and have been held in storage.

VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome 5: High Quality Infrastructure and Water Utility.

OPTIONS

1. Approve the recommended action.

2. Provide Staff with further direction.

ATTACHMENTS

1. Resolution 2025-39 with Exhibit A: Street Sweeping Maps and Exhibit B: Solid Waste Collection Map
Prepared by: Approved by:
.
______________________ _______________________
Lina Hernandez Andrew Vialpando
Assistant City Manager City Manager

Tuesday, December 16, 2025 Reg CC MTG, Page *320
RESOLUTION NO. 2025-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMITA, CALIFORNIA, AMENDING RESOLUTION NO. 2024-10 (AMENDING

PRIORITY A, B, AND C STREETS, FOUND ON EXHIBIT A OF
RESOLUTION 2022-28)

THE CITY COUNCIL OF THE CITY OF LOMITA, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. Recitals
A. The City of Lomita is a Co-Permittee with the Los Angeles County Flood Control District, County of Los Angeles, 85 incorporated cities within the coastal watersheds of Los Angeles County, Ventura County Watershed Protection District, County of Ventura, and ten (10) incorporated cities within Ventura County, for the Waste Discharge Requirements and National Pollutant Discharge Elimination System (NPDES) Permit (No. CAS004004, Order R4-2021-0105) for Municipal Separate Storm Sewer Systems (MS4).

B. The City strives to minimize the discharge of pollutants associated with activities occurring in the street and public right of way.

C. The City Council of the City of Lomita intends to continue to improve public convenience and cleanliness.

D. Section VIII. H. 8. of the NPDES Permit identifies Priority A, B, and C by level of trash/debris with the minimum required sweeping.

E. The City of Lomita has investigated each street and categorized it according to debris/trash generation.

F. Section 13385 of the California Water Code provides that any person who violates a waste discharge requirement or a provision of the California Water Code is subject to civil penalties that are capped at up to $5,000 per day, $10,000 per day, or $25,000 per day of violation, depending on the violation. When the violation involves the discharge of pollutants, section 13385 imposes civil penalties of up to $10 per gallon per day or $25 per gallon per day of violation; or some combination thereof, depending on the violation.

G. California Water Code section 13385(h)(1) requires the Los Angeles Water Board to assess a mandatory minimum penalty of three thousand dollars ($3,000) for each serious violation.

H. On July 5, 2022, the City of Lomita approved Resolution 2022-28 to establish Priority A, B, and C streets based upon debris/trash generation and to rescind Resolution No. 2007-68, A Resolution of the City Council of the City of Lomita, California Designating City Wide Street Sweeping for All City Streets.

Tuesday, December 16, 2025 Reg CC MTG, Page *321
Resolution No. 2025-39