This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200.
Procedures for Addressing the Council
IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE
COUNCIL SUBMIT YOUR COMMENTS IN ADVANCE TO
[email protected]
OR FILL OUT A FORM
PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL.
AGENDA
City Council Regular Meeting
TO BE HELD ON
February 21, 2023
COUNCIL CHAMBERS - 11350 BULLIS RD. LYNWOOD, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-215-8782 Meeting ID: 835 2029 8238
Duly Posted on 2/18/2023 by MQ
6:00 PM
1. CALL TO ORDER
2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
3. ROLL CALL OF COUNCIL MEMBERS
Oscar Flores, Mayor
Rita Soto, Mayor Pro Tem
Gabriela Camacho, Council Member
Juan Munoz-Guevara, Council Member
Jose Luis Solache, Council Member
4. PLEDGE OF ALLEGIANCE
5. INVOCATION
6. PRESENTATIONS/PROCLAMATIONS
Update on Law Enforcement Issues
City Council Members Reporting on Meetings Attended (Gov. Code Section 53232.3 (D)).
City Video(s)
Black History Month Proclamation
Black History Month Contest Winners
7. COUNCIL RECESS TO:
City Council Regular Meeting - Page 1 of 582
Lynwood Successor Agency
Lynwood Housing Authority
Lynwood Public Financing Authority
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE COUNCIL ON ITEMS WITHIN THE JURISDICTION OF THE COUNCIL AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE
AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT COUNCIL MAY REFER THE MATTER TO STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).)
CONSENT CALENDAR
ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON
THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION.
8. APPROVAL OF THE WARRANT REGISTER
Comments:
City of Lynwood warrant register dated February 21, 2023 for FY 2022-2023. (FIN)
Recommendation:
Staff respectfully recommends that the City Council of the City of Lynwood approve the warrant register dated February 21, 2023 for FY 2022-2023.
9. PREVIOUS MEETING MINUTES
Comments:
Approving previous meeting minutes for Lynwood City Councicl (CC):
February 7, 2023 Regular Closed Session Meeting
February 7, 2023 Regular City Council Meeting
Recommendation:
Staff recommends that the Lynwood City Council approve the following minutes:
February 7, 2023 Regular Closed Session Meeting
February 7, 2023 Regular City Council Meeting
10. TREASURER'S INVESTMENT POLICY
Comments:
The investment policies and practices of the City of Lynwood are based on state laws and principles of prudent money management. This statement is intended to provide guidelines for the prudent investment of idle and surplus cash, while meeting the short and long-term cash flow demands and it is submitted annually for City review. (CT)
Recommendation:
Staff recommends that the City Council adopt the following resolution entitled:
“A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, City Council Regular Meeting - Page 2 of 582
STATE OF CALIFORNIA, APPROVING THE TREASURER’S STATEMENT OF INVESTMENT POLICY."
11. FY2021-22 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) Comments:
The City’s auditor, The Pun Group, LLP (TPG), an independent auditor and one of the well- recognized regional CPA firms in California, completed the audit of the City’s annual financial states for the fiscal year ending June 30, 2022. The audited financial statements are incorporated into an ACFR.
TPG audited the City’s books and issued an un
modified (“clean”) opinion on the City’s financial
statements. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America (or “GAAP”) and the standards applicable to the financial audits contained in the Government Audit Standards, issued by the Comptroller General of the United States. These standards require that the auditors plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement and accurately reflects the City’s financial position. (FIN)
Recommendation:
It is recommended that the City Council consider:
1 .
Receiving and filing the City’s Fiscal Year 2021-22 Annual Comprehensive Financial Report (ACFR)
12. APPROVAL OF RESOLUTION NO. 23-XX – APPLICATION FOR GRANT FUNDING
FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT’S CALHOME PROGRAM
Comments:
In order to submit an application for the CalHome Program, a City Council resolution authorizing submittal to HCD is required, and it also authorizes the City Manager to execute the application and any other documents. In addition, the City has engaged Global Urban Strategies, Inc. for the administration of the CalHome Program, including loan servicing, monitoring, homebuyer education, submittal of reimbursement requests, program eligibility, and vetting of applicants. (FIN)
Recommendation:
Staff recommends City Council adopt Resolution No. 23-xx, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE SUBMISSION OF AN
APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE CALHOME PROGRAM;
THE EXECUTION OF A STANDARD AGREEMENT IF SELECTED FOR SUCH FUNDING AND ANY AMENDMENTS THERETO; AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE CALHOME PROGRAM.
13. APPROVAL OF SPECIAL EVENT PERMIT – CIRCO HERMANOS CABALLER CIRCUS
Comments:
The City Council will consider ratification of the urgency approval of a Special Permit for the operation of a circus at 3000 East Imperial Highway from February 9, 2023 to March 6, 2023. (CD)
Recommendation:
Staff recommends that the City Council approve a Special Permit for Circo Hermanos Caballero for the operation of a circus at 3000 East Imperial Highway from February 9, 2023 through March City Council Regular Meeting - Page 3 of 582
6, 2023, contingent upon the payment of all required fees. Specific event activities are as follows
14. CHANGE OF ALTERNATE MEMBER TO THE GOVERNING BOARD OF THE LOS
ANGELES GATEWAY REGION INTEGRATED REGIONAL WATER MANAGEMENT
AUTHORITY
Comments:
Staffing change at Public Works Department has initiated a change of the Alternate Member to the Governing Board of the Los Angeles Gateway Region Integrated Regional Water Management Authority. (PW)
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled: “A RESOLUTION
OF THE CITY COUNCIL APPROVING A CHANGE OF THE ALTERNATE TO THE
GATEWAY REGION INTEGRATED REGIONAL WATER MANAGEMENT JOINT POWERS AUTHORITY GOVERNING BOARD.”
15. AWARD OF CONTRACT TO SENIORS AND JUNIORS, INC. FOR IMPROVEMENT WORK AT LOS ANGELES COUNTY FIRE DEPARTMENT, STATION 147.
Comments:
On August 21, 2022, the city received three proposals for the improvement work at Los Angeles County Fire Station 147. Seniors and Juniors, Inc. was the lowest responsible bidder for Fire Station 147 at $183,800.00. (PW)
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled: “
A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONTRACT TO SENIORS AND JUNIORS, INC. AS THE LOWEST RESPONSIBLE BIDDER IN THE AMOUNT OF $183,800.00 FOR THE IMPROVEMENTS AT LOS ANGELES COUNTY FIRE STATION 147; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT.”
NEW/OLD BUSINESS
16. CONDUCT SECOND READING OF ORDINANCE NO. 1756 - AN ORDINANCE
AMENDING LYNWOOD'S MUNICIPAL CODE SETTING A MINIMUM WAGE OF TWENTY-FIVE ($25.00) PER HOUR FOR QUALIFYING HEALTHCARE WORKERS
WORKING IN THE CITY OF LYNWOOD
Comments:
A citizens group of Lynwood residents (proponents) previously prepared a Notice of Intent to circulate an initiative petition seeking to qualify a Healthcare Workers Minimum Wage Ordinance in Lynwood. The proponents failed to gather the necessary signatures to advance the measure to the foregoing election. However, the proponents and their advocates have presented several times to the City Council their position and continued desire to seek such ordinance. Additionally, staff has met with the proponents to gather additional information. Consequently, this item is on this agenda for consideration or further direction. (CC)
Recommendation:
Conduct second reading, read by title only and adoption of the attached ordinance entitled, "AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ADDING CHAPTER 4-35 TO THE LYNWOOD MUNICIPAL CODE AS AN ORDINANCE TO ESTABLISH A MINIMUM WAGE OF $25.00 PER HOUR FOR QUALIFYING HEALTHCARE WORKERS IN THE CITY OF LYNWOOD"
City Council Regular Meeting - Page 4 of 582
17. ACCEPTANCE OF 2023 DODGERS DREAMTEAM YOUTH BASEBALL/SOFTBALL
PROGRAM AGREEMENT AND GRANT FUNDING
Comments:
The Recreation & Community Services Department applied for grant funding from the Los Angeles Dodgers Foundation (LADF) to continue its partnership as its Dodgers Dreamteam affiliate youth baseball and softball program. The Los Angeles Dodgers Foundation has notified staff that its application was successful and the partnership will continue for the 2023 Lynwood Youth Baseball & Softball (LYBS) seasons. Staff is requesting that the City Council formally accept the grant through Resolution. (REC)
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled, “A RESOLUTION
OF THE LYNWOOD CITY COUNCIL APPROVING AN AGREEMENT WITH THE LOS ANGELES DODGERS FOUNDATION FOR THE 2023 DODGERS DREAMTEAM LYNWOOD YOUTH BASEBALL & SOFTBALL PROGRAM.”
18. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR CODE
ENFORCEMENT SUPPLEMENTAL SERVICES
Comments:
The City Council will consider the award of a Professional Services Agreement in the amount of $250,000 in ARPA funding for Code Enforcement Supplemental Services. (CD)
Recommendation:
Staff recommends that the City Council adopt the following resolution entitled:
“
A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES,
STATE OF CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT, IN THE NOT TO EXCEED AMONT OF $250,000 IN ARPA FUNDING FOR CODE
ENFORCEMENT SUPPLEMENTAL SERVICES
”
19. STAFF RECOMMENDS THAT THE CITY COUNCIL AUTHORIZE THE CITY
MANAGER TO ENTER INTO AN AGREEMENT FOR A NEW PERMIT MANAGEMENT
SOLUTION
Comments:
The City Council will consider the award of a Professional Service Agreement in the amount not to exceed $191,701 for a permit management software solution.(CD)
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled; “A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING A PROFESSIONAL SERVICE AGREEMENT WITH EDGESOFT, INC. FOR A PERMIT MANAGEMENT SOLUTION.
20. MEASURE R FUNDING AGREEMENT FOR IMPERIAL HIGHWAY CAPACITY
ENHANCEMENTS PROJECT
Comments:
The Imperial Highway Corridor Capacity Enhancements project is located along the Imperial Highway in the Cities of Lynwood and South Gate. The purpose of this project is to implement a range of improvements to the existing intersections to improve their operation. The project limits are between State Street and Wright Road along Imperial Highway. (PW)
Recommendation:
Staff recommends that the City Council adopt the following resolution entitled: “A RESOLUTION
OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE MEASURE R City Council Regular Meeting - Page 5 of 582
FUNDING AGREEMENT WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (“LACMTA”) FOR THE IMPERIAL HIGHWAY CAPACITY ENHANCEMENTS PROJECT FOR THE AMOUNT OF $2,626,537.39; AND AUTHORIZING THE APPROPRATION FOR THE PROJECT.”
21. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
AUTHORIZING THE CITY MANAGER TO APPROVE THE ACCEPTANCE OF AN ART
SCULPTURE DONATION FROM THE OMBUDSMAN INTERNATIONAL
ORGANIZATION
Comments:
This resolution authorizes the City Manager to facilitate the acceptance of a sculpture from the
Ombudsman International Organization, freely offered to the City of Lynwood as a cultural arts donation.
This art work is a sculpture of the first African-American official elected to the Lynwood City Council, Mr.
Robert Henning.
Robert Henning was an American politician who served as the first African-American Mayor in the City of Lynwood, California. Mr. Henning has historical local distinction and his sculpture will honor his years of positive and dynamic community service as a former resident, Councilman, and community advocate. In addition to
the subject art sculpture having historical value, it promotes inspiration and encouragement in socioeconomic advancements. (CM)
Recommendation:
Staff recommends that the Lynwood City Council do the following -
1) AUTHORIZE THE CITY MANAGER TO APPROVE THE ACCEPTANCE OF THE
ROBERT HENNING SCULPTURE
2) AUTHORIZE POSSIBLE LOCATION ON PLACEMENT OF THE SCULPTURE
22. REVIEW OF BOARD, COMMISSION AND COMMITTEE MEMBERS & ANNUAL
BOARDS, COMMISSIONS AND COMMITTEES LOCAL APPOINTMENT LIST Comments:
Review of Board and Commission Members. (CC)
Recommendation:
Staff recommends that the City Council review the list of Board and Commission members.
Currently there are four (4) vacancies to the Boards and Commissions, including the Community Development Block Grant Board, Public Safety/Traffic & Parking Commission, Personnel Board and the Citizen Oversight Committee. The City Council may make any adjustments to these Boards and Commissions, as it deems appropriate, in accordance with the rules outlined below.
23. CITY COUNCIL ORAL AND WRITTEN COMMUNICATION
24. STAFF ORAL COMMENTS
ADJOURNMENT
THE NEXT REGULAR MEETING WILL BE HELD ON MARCH 7, 2023 AT 6:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA.
City Council Regular Meeting - Page 6 of 582
Agenda Item # 8.
AGENDA STAFF REPORT
DATE:
February 21, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Harry Wong, Director of Finance & Administration
Lilly Hampton, Senior Accounting Technician
SUBJECT:
APPROVAL OF THE WARRANT REGISTER
Recommendation:
Staff respectfully recommends that the City Council of the City of Lynwood approve the warrant register dated February 21, 2023 for FY 2022-2023.
Background:
N/A
Discussion and Analysis:
N/A
Fiscal Impact:
FY 2022-2023
Coordinated With:
City Manager
City Attorney
ATTACHMENTS:
Description
WARRANT RUNS
02 21 2023
RESOLUTION ITEM
City Council Regular Meeting - Page 7 of 582
apCkHist Void-Check Listing Page: 1
02/15/2023 8:43AM City of Lynwood
Bank code: apbank
Void Check# Date Vendor Status ClearNoid Date Reason-Void Reissue Inv. Date Amount Paid Check Total - --
206474 12/15/2022 013526 DOWNEY PARTY 02/13/2023 STALE DATED 206796 12/13/2022 635.25 635.25 206636 01/19/2023 012692 RITA SOTO 02/14/2023 PAID-PETTY CASH 02/05/2023 185.00 185.00 206668 01/31/2023 013730 COLONIAL LIFE & 02/08/2023 WRONG AMOUNT 206804 01/12/2023 3,241.66 02/08/2023 Ben150532 01/26/2023 3,167.69 6,409.35
206789 02/07/2023 007609 WILLDAN FINANCIAL 02/07/2023 INVOICE# 206794 12/21/2022 6,450.00 6,450.00 apbank Total : 13,679.60
Page: 1
City Council Regular Meeting - Page 8 of 582
vchlist Electronic Financial Transaction List Page: 2
02/16/2023 12:26:16PM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 1500 12/6/2022 013090 PERS Ben149204 PERS: PAYMENT 56,458.51 Total : 56,458.51
1504 1/23/2023 013507 NATIONWIDE RETIREMENT SOLUTION Ben149212 401A: PAYMENT 15.18 Total : 15.18
1508 12/6/2022 013090 PERS Ben149227 PERS: PAYMENT 465.52 Total : 465.52
1511 12/21/2022 012556 KEENAN & ASSOCIATES Ben149595 DELTA DENTAL: PAYMENT 4,486.82 Total: 4,486.82
1512 12/1/2022 005794 INTERNAL REVENUE SERVICE Ben149597 SOCIAL SECURITY: PAYMENT 45,305.35 Total: 45,305.35
1513 1/6/2023 013073 CALPERS INSURANCE Ben149599 MEDICAL HEALTH PAYMENT 59,426.77 Total : 59,426.77
1514 12/22/2022 013090 PERS Ben149601 PERS: PAYMENT 56,768.54 Total : 56,768.54
1515 12/2/2022 001357 EMPLOYMENT DEVELOPMENT DEPT. Ben149603 STATE WITHHOLDING TAXES: 13,592.74 Total : 13,592.74
1521 12/15/2022 005794 INTERNAL REVENUE SERVICE Ben149934 SOCIAL SECURITY: PAYMENT 53,488.67 Total: 53,488.67
1524 1/6/2023 013073 CALPERS INSURANCE Ben149940 MEDICAL HEAL TH: PAYMENT 58,410.36 Total : 58,410.36
1525 1/5/2023 013090 PERS Ben149942 PERS: PAYMENT 56,966.70 Total : 56,966.70
1526 12/16/2022 001357 EMPLOYMENT DEVELOPMENT DEPT. Ben149944 STATE WITHHOLDING TAXES: 17,940.87 Total: 17,940.87
1529 12/21/2022 012556 KEENAN & ASSOCIATES Ben149982 DEL TA DENTAL: PAYMENT 227.98 Page: 2
City Council Regular Meeting - Page 9 of 582
vchlist Electronic Financial Transaction List Page: 3
02/16/2023 12:26:16PM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount --
1529 12/21/2022 012556 012556 KEENAN & ASSOCIATES (Continued) Total : 227.98 1530 12/29/2022 005794 INTERNAL REVENUE SERVICE Ben149984 SOCIAL SECURllY : PAYMENT 848.91 Total : 848.91
1531 1/6/2023 013073 CALPERS INSURANCE Ben149986 KAISER: PAYMENT 3,175.49 Total : 3,175.49
1532 1/25/2023 013090 PERS Ben149988 PERS: PAYMENT 1,029.34 Total : 1,029.34
1534 . 1/19/2023 010069 NATIONWIDE RETIREMENT SOLUTION Ben149992 DEF COMP- NATIONWIDE 457: 500.00 Total : 500.00
1535 12/29/2022 005794 INTERNAL REVENUE SERVICE Ben149996 SOCIAL SECURllY : PAYMENT 47,680.03 Total : 47,680.03
1536 1/25/2023 013090 PERS Ben149998 PERS: PAYMENT 57,030.62 Total : 57,030.62
1537 12/29/2022 001357 EMPLOYMENT DEVELOPMENT DEPT. Ben150000 STATE WITHHOLDING TAXES: 17,261.86 Total : 17,261.86
1541 1/31/2023 013090 PERS Ben150369 PERS: PAYMENT 57,019.71 Total: 57,019.71
1543 1/19/2023 013091 PERS 457 Ben150373 DEF COMP - PERS 457: PAYMENT 6,061.04 Total: 6,061.04
1544 1/23/2023 010069 NATIONWIDE RETIREMENT SOLUTION Ben150375 DEF COMP- NATIONWIDE 457: 13,197.45 Total : 13,197.45
1545 1/23/2023 013507 NATIONWIDE RETIREMENT SOLUTION Ben150377 401A: PAYMENT 201.44 Total : 201.44
1551 2/1/2023 013091 PERS 457 Ben150556 DEF COMP- PERS 457: PAYMENT 6,061.04 Total : 6,061.04
1558 2/1/2023 013091 PERS 457 Ben150580 DEF COMP- PERS 457: PAYMENT 2,395.55 Page: 3
City Council Regular Meeting - Page 10 of 582
vchlist
02/16/2023 12:26:16PM
Bank code:
Voucher
1558
1005256
1005257
1005258
apbank
Date Vendor
2/1/2023 013091 013091 PERS 457
12/21/2022 012556 KEENAN & ASSOCIATES
1/19/2023 013121 AUL HEALTH BENEFITTRUSTC/O,
1/6/2023 013073 CALPERS INSURANCE
Electronic Financial Transaction List
City of Lynwood
Invoice
(Continued)
012556-01312023
013121-022823
100000017030362
100000017030363
PO#
1005259 2/1/2023 000372 FIRE DEPARTMENT, LOS ANGELES C0010995 01-001724 1005260 2/2/2023 000124 CITY OF LYNWOOD-WORKERS'COMP
31 Vouchers for bank code :
31 Vouchers in this report
apbank
35538-35575
35578-35634
Page: 4
Description/Account Amount
Total : 2,395.55
DENTAL PREMIUM 1/2023 7,398.24
Total : 7,398.24
REIMB-RETIREE MEDICAL PRMIUM 59,229.91
Total : 59,229.91
MEDICAL PREMIUM 1/2023 RETIREE 51,007.16
MEDICAL PREMIUM 1/2023 RETIREE 286.67
Total : 51,293.83
FIRE PROTECTION SERVICES 692,932.87
Total : 692,932.87
REPLENISH ACCOUNT 11/2022 7,544.06
REPLENISH ACCOUNT 12/2022 25.95
Total : 7,570.01
Bank total : 1,454,441.35
Total vouchers : 1,454,441.35
Page: 4
City Council Regular Meeting - Page 11 of 582
vchlist
02/08/2023
Bank code:
Voucher
206790
206791
206792
206793
206794
206795
5:35:35PM
apbank
Date Vendor
217/2023 012148 BARRERA, JACOB
217/2023 013737 KUSTOM SIGNALS INC
2/7/2023 001224 STANDARD INSURANCE COMPANY
217/2023 011221 THE KILKENNY GROUP
217/2023 007609 WILLDAN FINANCIAL SERVICES
217/2023 001224 STANDARD INSURANCE COMPANY
6 Vouchers for bank code : apbank
Prepaid-Check List
City of Lynwood
Invoice
---------
CL027
380230
001224-022823
65 66
010-53229
Ben150351
Ben150534
Ben150568
PO#
08-005086
01-001761
01-001761
02-002654
Description/Account
COMMUNITY ACTIVITY EXPENSE
Total :
RAPTOR FOR MOTOCYCLE UNIT
Total :
LIFE INSURANCE PREMIUM
Total :
PROF & CONTRACTUAL SERVICE
PROF & CONTRACTUAL SERVICE
Total:
PROF & CONTRACTUAL SERVICE
Total:
LIFE INSURANCE: PAYMENT
LIFE INSURANCE : PAYMENT
LIFE INSURANCE : PAYMENT
Total :
Bank total:
Page: 5
Amount
1,250.00
1,250.00
2,719 .77
2,719.77
745.00
745.00
10,416.00
10,416.00
20,832.00
6,450.00
6,450.00
641 .35
726.15
39.50 1,407.00
33,403.77
Page : 5
City Council Regular Meeting - Page 12 of 582
vchlist Prepaid-Check List Page: 6
02/14/2023 5:02:13PM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206796 2/13/2023 013526 DOWNEY PARTY RENTALS 1-002202 COMMUNITY ACTIVITY EXPENSE 635.25 Total : 635.25
206797 2/13/2023 008424 SIDDELL, STEPHANIE 1213 08-005045 COMMUNITY ACTIVITY EXPENSE 100.00 Total : 100.00
206798 2/13/2023 008424 SIDDELL, STEPHANIE 0214 08-005045 COMMUNITY ACTIVITY EXPENSE 100.00 Total : 100.00
206799 2/13/2023 000486 LIBERTY UTILITIES 158555-020223 06-009582 WATER USE FOR IRRIGATION 107.85 164055-020223 06-009582 WATER USE FOR IRRIGATION 25.33
164060-020223 06-009582 WATER USE FOR IRRIGATION 25.33
Total : 158.51
206800 2/13/2023 012089 SHUTTERS LINK&WINDOW FASHIONS 684 06-009809 WINDOW BLINDS & REPAIRS 3,000.00 Total: 3,000.00
206801 2/13/2023 012089 SHUTTERS LINK&WINDOW FASHIONS 684-A 06-009827 WINDOW BLINDS & REPAIRS 2,336.55 Total : 2,336.55
206802 2/13/2023 000163 SOUTHERN CALIFORNIA EDISON 000163020723 LIGHT & POWER SERVICES 76,584.29 Total : 76,584.29
206803 2/14/2023 013473 CONTROLLING INSURANCE COST IN, Ben150355 VISION: PAYMENT 485.45 Ben150538 VISION: PAYMENT 485.45
Ben150570 VISION: PAYMENT 19.47
Total : 990.37
206804 2/14/2023 013730 INSURANCE COMPANY, COLONIAL LIFE Ben150349 ACCIDENT PRETAX: PAYMENT 2,404.57 Ben150532 ACCIDENT PRETAX: PAYMENT 2,330.60
Total : 4,735.17
206805 2/14/2023 013747 AMERIFLEX 013747-010723 HEALTH FSA PRE TAX 837.09 013747-012123 HEALTH FSA PRE TAX 837.09
Total : 1,674.18
206806 2/14/2023 013473 CONTROLLING INSURANCE COST IN, 0134 73-022823 RETIREE VISION PREMIUM 888.27 Page: 6
City Council Regular Meeting - Page 13 of 582
vchlist
02/14/2023
Bank code :
Voucher
5:02:13PM
apbank
Date Vendor
Prepaid-Check List
City of Lynwood
Invoice
206806
206807
2/14/2023 013473 013473 CONTROLLING INSURANCE COST (Continued) 206808
206809
206810
206811
206812
206813
206814
2/14/2023 013503 FINANCIAL SERVICES LLC, PITNEY
2/14/2023 013754 HAVEN , JAM
2/14/2023 013517 JERSEY MIKE'S SUBS
2/14/2023 011674 PARAMOUNT PET ENTERTAINMENT
2/14/2023 008664 PINS ADVANTAGE
2/14/2023 013756 SWRCB-DWOCP
2/14/2023 004986 BIOMETRICS4ALL , INC
2/14/2023 013084 LE, JESSICA
19 Vouchers for bank code :
19 Vouchers in this report
apbank
3105938271
COL22623
013517 -022623
PPE 69017
2131
2159
2273
2376
312023-GRADE:T1
COLYN0104
Ben151030
PO#
05-001944
05-001948
05-001948
05-00194B
05-001948
05-001938
Description/Account
Total :
EQUIPMENT LEASE
Total:
COMMUNITY ACTIVITY EXPENSE
Total:
COMMUNITY ACTIVITY EXPENSE
Total :
COMMUNITY ACTIVITY EXPENSE
Total :
PROF & CONTRACTUAL SERVICE
PROF & CONTRACTUAL SERVICE
PROF & CONTRACTUAL SERVICE
PROF & CONTRACTUAL SERVICE
Total :
RENEW FEE
Total:
PROF & CONTRACTUAL SERVICE
Total:
JESSICA HERRERA : PAYMENT
Total:
Bank total:
Total vouchers :
Page: 7
Amount
888.27
865.07
865.07
1,350 .00
1,350.00
3,885 .00
3,885.00
363.00
363.00
125.00
125.00
137.50
137.50
525.00
55.00 55.00
6.00 6.00
293 .00
293.00
98,544.66
98,544.66
Page : 7
City Council Regular Meeting - Page 14 of 582
vchlist Check List Page: 8
02/16/2023 10:52:25AM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206815 2/21/2023 000743 ADMINISTRATIVE SVCS. CO-OP 221213 08-005054 PROF & CONTRACTUAL SERVICE 9,549 .87 Total : 9,549.87
206816 2/21/2023 007439 All CITY MANAGEMENT SVCS, INC. 82919 11-002148 PROF & CONTRACTUAL SERVICE 13,651.68 Total : 13,651.68
206817 2/21/2023 011719 All STAR ELITE SPORTS 3309 08-005079 UNIFORM PURCHASE 602.98 Total : 602.98
206818 2/21/2023 010746 ALVAREZ-GLASMAN & COLVIN 2022-11-20580 02-002622 LEGAL SERVICES 5,395.00 2022-11-20580-1 02-002622 LEGAL SERVICES 10,186.00
2022-11-20580-2 02-002622 LEGAL SERVICES 117.00
2022-11-20580-3 02-002622 LEGAL SERVICES 258.50
2022-11-20580-4 02-002622 LEGAL SERVICES 21,705 .56
2022-11-20581 01-001747 LEGAL SERVICES 8,294.00
2022-11-20582 02-002622 LEGAL SERVICES 50.00
2022-11-20583 02-002622 LEGAL SERVICES 300.00
2022-11 -20585 02-002622 LEGAL SERVICES 50.00
Total: 46,356.06
206819 2/21/2023 006399 AT&T 000019294348 - TELEPHONE SERVICE 835.36 000019295561 TELEPHONE SERVICE 190.45
000019392574 TELEPHONE SERVICE 1,230.39
Total : 2,256.20
206820 2/21/2023 004285 AVANT GARDE, INC. 8150 06-009816 PROF & CONTRACTUAL SERVICE 975.00 Total: 975.00
206821 2/21/2023 000884 BLUE DIAMOND MATERIALS 3053501 06-009648 OPERATING SUPPLIES 1,993.45 Total: 1,993.45
206822 2/21/2023 001338 BROADCAST MUSIC , INC. 46106248 LICENSING FEE 839.00 Total: 839.00
206823 2/21/2023 013700 CAMPOS, FATIMA 013700-013123 08-005065 PROF & CONTRACTUAL SERVICE 576.00 Total : 576.00
Page: 8
City Council Regular Meeting - Page 15 of 582
vchlist Check List Page: 9
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206824 2/21/2023 000488 CANON SOLUTIONS AMERICA, INC 6002764046 08-004989 EQUIPMENT RENTAL 69.60 6002766049 08-004989 EQUIPMENT RENTAL 579.79
Total: 649.39
206825 2/21/2023 000657 CENTURY RADIATORS 0017 06-009624 AUTO EXPENSE 122.83 0018 06-009624 AUTO EXPENSE 122.83
0020 06-009624 AUTO EXPENSE 122.83
Total : 368.49
206826 2/21/2023 009302 CHESSER, CHRISTINE 18127232 PROF & CONTRACTUAL SERVICE 250.00 Total : 250.00
206827 2/21/2023 002319 CINDY'S JUMPERS 60158 08-005075 COMMUNITY ACTIVITY EXPENSE 341 .00 Total: 341.00
206828 2/21/2023 013555 COLLINS, JORDAN 013555-013123 08-005009 PROF & CONTRACTUAL SERVICE 240.00 Total : 240.00
206829 2/21/2023 009563 COMMISSIONER/WEIGHTS & MEASURE, 231069 SAFETY TRAINING 584.48 Total : 584.48
206830 2/21/2023 010754 COOL IMAGE WATER, OBA/ AMERICAN 108549 01-001748 WATER SERVICE 130.30 1757 03-000436 WATER SERVICE 36.25
1760 02-002629 WATER SERVICE 29.00
1767 11-002152 WATER SERVICE 123.25
1768 02-002629 WATER SERVICE 29.00
1771 06-009645 WATER SERVICE 145.00
1772 01-001748 WATER SERVICE 274.41
Total: 767.21
206831 2/21/2023 000027 COUNTY CLERK, 23-3032 03-000444 PROF & CONTRACTUAL SERVICE 4,714.72 Total: 4,714.72
206832 2/21/2023 007243 COUNTY OF LOS ANGELES, 23011703605 06-009625 TRAFFIC SIGNAL MAINTENANCE 689.88 23011703606 06-009625 TRAFFIC SIGNAL MAINTENANCE 770.64 Total: 1,460.52
206833 2/21/2023 013751 CUELLAR, LUIS GERARDO 007308-022823 ELECTRONIC/MEDIA-AUTO EXPENSES 500.00 Page: 9
City Council Regular Meeting - Page 16 of 582
vchlist Check List Page: 10
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount -
206833 2/21/2023 013751 013751 CUELLAR , LUIS GERARDO (Continued) Total : 500.00 206834 2/21/2023 004089 ELDER , BRUCE A. 004089-011723 08-005017 PROF & CONTRACTUAL SERVICE 793.60 Total : 793.60
206835 2/21/2023 001087 FANTASY FLOWERS AND GIFTS 2351 08-005011 COMMUNITY ACTIVITY EXPENSE 129.59 2351-A 08-005077 COMMUNITY ACTIVITY EXPENSE 90.91
2363 01-001743 COMMUNITY ACTIVITY EXPENSE 165.38
2382 01-001743 COMMUNITY ACTIVITY EXPENSE 71 .66
Total : 457.54
206836 2/21/2023 003334 FED EX 8-020-87385 02-002613 COURIER SERVICES 10.45 8-020-87385-A 06-009576 COURIER SERVICES 12.21
8-027 -45738 02-002613 COURIER SERVICES 12.21
Total: 34.87
206837 2/21/2023 002234 FLORES, MARK 002234-012023 REIMBURSMENT 207 .15 Total : 207.15
206838 2/21/2023 009082 FLOYD, LATASIA 009082-013123 08-005018 PROF & CONTRACTUAL SERVICE 1,000.00 Total : 1,000.00
206839 2/21/2023 013757 FOSTER & FOSTER, INC . 22-931 PROF & CONTRACTUAL SERVICE 450 .00 Total: 450.00
206840 2/21/2023 001175 FS CONTRACTORS, INC . 2 06-009773 PROF & CONTRACTUAL SERVICE 45,795 .22 Total : 45,795.22
206841 2/21/2023 000593 GLADWELL GOVERNMENTAL SVCS ,INC 5043 PROF & CONTRACTUAL SERVICE 300.00 Total : 300.00
206842 2/21/2023 013702 GOOD GUARD SECURITY INC 10271 08-005070 SECURITY SERVICES FOR FY 23 14,887 .36 Total : 14,887.36
206843 2/21/2023 000993 GRM INFORMATION MANAGEMENT 0468984 12-000409 OFFSITE TAPE STORAGE 99.10 0471013 12-000409 OFFSITE TAPE STORAGE 98.29
0471364 -0471378 01-001749 OFFSITE STORAGE 846 .70
Page: 10
City Council Regular Meeting - Page 17 of 582
vchlist Check List Page: 11
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206843 2/21/2023 000993 000993 GRM INFORMATION MANAGEMENT (Continued) Total: 1,044.09 206844 2/21/2023 009832 HARDING, ELIZABETH B. 009832-013123 08-005019 PROF & CONTRACTUAL SERVICE 170.00 Total: 170.00
206845 2/21/2023 012031 HARMONY PROJECT 122022 11-002141 PROF & CONTRACTUAL SERVICE 6,000.00 Total: 6,000.00
206846 2/21/2023 007514 HOLIDAYGOO, INC. 19577 COMMUNITY ACTIVITY EXPENSE 1,295.44 Total: 1,295.44
206847 2/21 /2023 001681 HUMAN SERVICES ASSOCIATION 123120226 08-005021 PROF & CONTRACTUAL SERVICE 2,961.25 Total: 2,961.25
206848 2/21/2023 000353 INFOSEND, INC. 227057 02-002648 PROF & CONTRACTUAL SERVICE 3,718.85 Total: 3,718.85
206849 2/21/2023 005848 INFRASTRUCTURE ENGINEERS 28222 11-002187 PROF & CONTRACTUAL SERVICE 966.50 Total: 966.50
206850 2/21/2023 010358 JIMENEZ, JESSICA 010358-013123 08-005071 PROF & CONTRACTUAL SERVICE 480.00 Total: 480.00
206851 2/21/2023 001269 JOHN L HUNTER & ASSOCIATES LYN1MS412212 06-009701 PROF & CONTRACTUAL SERVICE 700.00 Total: 700.00
206852 2/21/2023 013750 JONES, MYEISHA 18375298 REFUND-BATEMAN HALL RENTAL 100.00 Total: 100.00
206853 2/21/2023 013434 KILEY & ASSOCIATES,LLC 17 01-001745 PROF & CONTRACTUAL SERVICE 5,000.00 Total: 5,000.00
206854 2/21/2023 000001 KING FENCE, INC 46996 08-004997 FENCE RENTAL 42.50 Total: 42.50
206855 2/21/2023 013664 KOSMONT COMPANIES 2110.7-008 11-002213 PROF & CONTRACTUAL SERVICE 338.00 2110-7-007 11-002213 PROF & CONTRACTUAL SERVICE 543.40
Total : 881.40
Page: 11
City Council Regular Meeting - Page 18 of 582
vchlist Check List Page: 12
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206856 2/21/2023 003331 L.A. COUNTY SHERIFF DEPT. 231900EC 01-001729 LAW ENFORCEMENT SERVICE 4,801 .18 231946EC 01-001729 LAW ENFORCEMENT SERVICE 2,821.29
Total: 7,622.47
206857 2/21/2023 010124 LABORATORIES, INC., AMERICAN 214021 06-009449 PROF & CONTRACTUAL SERVICE 2,244 .00 Total: 2,244.00
206858 2/21/2023 011873 LAW ORGANIZATION,LLP, OLIVAREZ 20391 06-009775 PROF & CONTRACTUAL SERVICE 1,200.00 Total: 1,200.00
206859 2/21/2023 001612 LEAGUE OF CALIFORNIA CITIES 643410 MEMBERSHIP DUES 21,485 .00 Total: 21,485.00
206860 2/21/2023 011638 LINDSAY MARCIA COX 111222A PROF & CONTRACTUAL SERVICE 4,000 .00 Total : 4,000.00
206861 2/21/2023 002761 MARCO POWER EQUIPMENT 31215019 06-009672 MACHINERY/ EQUIPMENT REPAIR 232.30 31215024 06-009672 MACHINERY/ EQUIPMENT REPAIR 25.00
Total: 257.30
206862 2/21/2023 013065 MKN & ASSOCIATES 102046 06-009787 WATER STORAGE RESERVOIR NO. 22,187.46 Total : 22,187.46
206863 2/21/2023 013440 MUNISERVICES LLC I NV06-015923 02-002647 PROFESSIONAL SERVICES 1,072.27 INV06-015993 02-002647 PROFESSIONAL SERVICES 2,010 .50
Total : 3,082.77
206864 2/21/2023 010150 NATIONAL AUTO FLEET GROUP, WF4645 08-004948 AUTO EXPENSE 28,789 .97 WF4810 08-004948 AUTO EXPENSE 28,789.97
WF5891 08-004948 AUTO EXPENSE 38,642 .83
WF5892 08-00494B AUTO EXPENSE 35,642 .83
Total: 131,865.60
206865 2/21/2023 000475 NATIONWIDE ENVIRONMENTAL SVCS . 32969 06-009606 PROF & CONTRACTUAL SERVICE 23,342 .67 Total: 23,342.67
206866 2/21/2023 011922 NORTH STAR LAND CARE 1601-495 06-009620 PROF & CONTRACTUAL SERVICE 33,360 .00 Page: 12
City Council Regular Meeting - Page 19 of 582
vchlist Check List Page: 13
02/16/2023 10:52:25AM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206866 2/21/2023 011922 011922 NORTH STAR LAND CARE (Continued) Total : 33,360.00 206867 2/21/2023 000078 ODP BUSINESS SOLUTIONS,LLC 288383028001 06-009661 OFFICE SUPPLIES 187.46 289120846001 06-009661 OFFICE SUPPLIES 69.29
289811895001 06-009661 OFFICE SUPPLIES 87.74
289925621001 01-001737 OFFICE SUPPLIES 155.94
Total: 500.43
206868 2/21/2023 013552 ODP BUSINESS SOLUTIONS ,LLC 292092886001 11-002200 OFFICE SUPPLIES 505.25 Total : 505.25 -
206869 2/21/2023 009059 OMNI APPRAISAL SERVICES OA230108 11-002145 APPRAISAL SERVICES 350.00 OA230109 11-002145 APPRAISAL SERVICES 350.00
OA230110 11-002145 APPRAISAL SERVICES 350.00
OA230111 11-002145 APPRAISAL SERVICES 350.00
OA230112 11-002145 APPRAISAL SERVICES 350.00
OA230113 11-002145 APPRAISAL SERVICES 350.00
OA230114 11-002145 APPRAISAL SERVICES 350.00
OA230115 11-002145 APPRAISAL SERVICES 350.00
OA230116 11-002145 APPRAISAL SERVICES 350.00
OA230117 11-002145 APPRAISAL SERVICES 350.00
OA230118 11-002145 APPRAISAL SERVICES 350.00
OA230119 11-002145 APPRAISAL SERVICES 350.00
Total : 4,200.00
206870 2/21/2023 013553 OROZCO , JAMES 103122 REIMBURSEMENT TUTION 414.00 Total: 414.00
206871 2/21/2023 000045 OSUNA AUTO GLASS 1004891 AUTO EXPENSE 65.00 1004920 AUTO EXPENSE 295.00
1004942 AUTO EXPENSE 356.83
1004943 AUTO EXPENSE 55.00
Total: 771.83
206872 2/21/2023 013745 PALOMO LUNA, HUGO 001895-0063 REFUNDABLE DEPOSIT 6,240.00 Total : 6,240.00
206873 2/21/2023 004854 PETTY CASH- FINANCE 004854-012522 REPLENISH BOX 210.44 Page: 13
City Council Regular Meeting - Page 20 of 582
vchlist Check List Page: 14
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206873 2/21/2023 004854 PETTY CASH- FINANCE (Continued) 004854-020623 REPLENISH PETTY 141.80
Total : 352.24
206874 2/21/2023 013717 PGS HOME AND SOLAR 8-010982 REFUND-PERMIT FEE 233.69 Total : 233.69
206875 2/21/2023 001057 RAMIREZ , JUAN E. 230119 03-000440 PROF & CONTRACTUAL SERVICE 387.50 Total : 387.50
206876 2/21/2023 013752 RIVERA, HECTOR 00099 REFUND-ZONING FEE 282.00 Total : 282.00
206877 2/21/2023 005067 ROADLINE 18276 06-009802 OPERATING SUPPLIES 373.60 18276-A 06-009789 OPERATING SUPPLIES 96.07
18293 06-009654 OPERATING SUPPLIES 223.47
Total: 693.14
206878 2/21/2023 011595 ROSE EQUIPMENT REPAIR, INC. IN30072 06-009586 AUTO EXPENSE 521 .74 Total: 521.74
206879 2/21/2023 013749 ROUX, KANIKA 1812732 REFUND-BATEMAN HALL RENTAL 200.00 Total: 200.00
206880 2/21/2023 008805 RPW SERVICES , INC. 33100 06-009681 PEST CONTROL /GOPHER 250.00 Total : 250.00
206881 2/21/2023 008036 RUBIO'S TIRE SHOP 1974 06-009727 FLEET REPAIR & MAINTENANCE 260.50 1975 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1976 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1977 06-009727 FLEET REPAIR & MAINTENANCE 45.00
1978 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1982 06-009727 FLEET REPAIR & MAINTENANCE 260.50
1983 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1984 06-009727 FLEET REPAIR & MAINTENANCE 30.00
1985 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1986 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1987 06-009727 FLEET REPAIR & MAINTENANCE 15.00
Page: 14
City Council Regular Meeting - Page 21 of 582
vchlist Check List Page: 15
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206881 2/21/2023 008036 RUBIO'S TIRE SHOP (Continued)
1988 06-009727 FLEET REPAIR & MAINTENANCE 15.00
1989 06-009727 FLEET REPAIR & MAINTENANCE 15.00
2064 06-009727 FLEET REPAIR & MAINTENANCE 15.00
Total : 746.00
206882 2/21/2023 000075 S & J SUPPLY CO. S100206226 .001 06-009682 MATERIALS & SUPPLIES 1,549.62 Total: 1,549.62
206883 2/21/2023 000519 S&S WORLDWIDE IN101138156 08-005053 COMMUNITY ACTIVITY EXPENSE 97.46 IN101141562 08-005085 COMMUNITY ACTIVITY EXPNESE 795.19 Total : 892.65
206884 2/21/2023 008006 SAFEGUARD BUSINESS SYSTEMS 035242158 OPERATING SUPPLIES 274.06 Total: 274.06
206885 2/21/2023 008745 SAN FRANCISCO LAUNDRY 58685 LAUNDRY SERVICE 6.93 58688 LAUNDRY SERVICE 2.64
59204 LAUNDRY SERVICE 9.90
Total: 19.47
206886 2/21/2023 001272 SJM INDUSTRIAL RADIO 260355 08-005069 PURCHASE OF COMMUNICATION 4,932.30 Total: 4,932.30
206887 2/21/2023 008668 SOLACHE , JOSE LUIS 008668-013123 ELECTRONIC MEDIA-AUTO EXPENSES 500.00 008668-022823 ELECTRONIC MEDIA-AUTO EXPENSES 500.00
Total: 1,000.00
206888 2/21/2023 008956 SPCALA 2023-01 11-002155 PROF & CONTRACTUAL SERVICE 21,000.00 Total: 21,000.00
206889 2/21/2023 012311 SPECIAL SERVICE FOR GROUPS, IN QUARTER 2-2022 11-002156 PROF & CONTRACTUAL SERVICE 1,776.24 Total: 1,776.24
206890 2/21/2023 011186 STANDARD GLASS & MIRROR 0001 06-009688 WINDOW AND GLASS REPAIRS 1,340.00 Total: 1,340.00
206891 2/21/2023 013701 TAYLOR, LASHONDA 013701-013123 PROF & CONTRACTUAL SERVICE 200.00 Page: 15
City Council Regular Meeting - Page 22 of 582
vchlist Check List Page: 16
02/16/2023 10:52:25AM City of Lynwood
Bank code : apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206891 2/21/2023 013701 013701 TAYLOR, LASHONDA (Continued) Total : 200.00 206892 2/21/2023 013215 THE HOME DEPOT PRO SUPPLY WORK 728852609 06-009630 OPERATING SUPPLIES 2,381.40 Total : 2,381.40
206893 2/21/2023 013215 THE HOME DEPOT PRO SUPPLY WORK 728027913 06-009629 MATERIALS & SUPPLIES 164.80 728027970 06-009629 MATERIALS & SUPPLIES 8.23
728241076 06-009629 MATERIALS & SUPPLIES 156.81
728260175 06-009629 MATERIALS & SUPPLIES 78.63
728266339 06-009629 MATERIALS & SUPPLIES 526.30
728950833 06-009629 MATERIALS & SUPPLIES 200.71
729119032 06-009629 MATERIALS & SUPPLIES 307.02
729128983 06-009629 MATERIALS & SUPPLIES 101.25
729349944 06-009629 MATERIALS & SUPPLIES 51 .09
729363721 06-009629 MATERIALS & SUPPLIES 76.92
Total : 1,671.76
206894 2/21/2023 007860 THE PUN GROUP , LLP 113688 02-002658 PROF & CONTRACTUAL SERVICE 28,745.00 Total : 28,745.00
206895 2/21/2023 000067 THYSSENKRUPP ELEVATOR CORP 3007030767 06-009590 PROF & CONTRACTUAL SERVICE 1,324.16 Total : 1,324.16
206896 2/21/2023 012294 TRANSTECH ENGINEERS, INC. 20221556 06-009762 PROF & CONTRACTUAL SERVICE 3,375.00 20221557 06-009762 PROF & CONTRACTUAL SERVICE 4,500.00
20221558 06-009479 PROF & CONTRACTUAL SERVICE 1,280.00
20221561 06-009549 PROF & CONTRACTUAL SERVICE 18,392.50 20221562 06-009656 PROF & CONTRACTUAL SERVICE 13,257.50 20222006 06-009479 PROF & CONTRACTUAL SERVICE 925.00
20222009 06-009549 PROF & CONTRACTUAL SERVICE 7,485.00
20222010 06-009656 PROF & CONTRACTUAL SERVICE 1,110.00
20222011 06-009762 PROF & CONTRACTUAL SERVICE 3,337.50
20222012 06-009762 PROF & CONTRACTUAL SERVICE 3,350.00
20222016 06-009762 PROF & CONTRACTUAL SERVICE 355.00
20222017 06-009762 PROF & CONTRACTUAL SERVICE 525.00
20222289 06-009479 PROF & CONTRACTUAL SERVICE 3,762.50
20222291 06-009549 PROF & CONTRACTUAL SERVICE 2,275.00
Page: 16
City Council Regular Meeting - Page 23 of 582
vchlist Check List Page: 17
02/16/2023 10:52:25AM City of Lynwood
Bank code: apbank
Voucher Date Vendor Invoice PO# Description/Account Amount 206896 2/21/2023 012294 TRANSTECH ENGINEERS, INC. (Continued) 20222292 06-009762 PROF & CONTRACTUAL SERVICE 580.00
20222296 06-009762 PROF & CONTRACTUAL SERVICE 175.00
20222717 06-009479 PROF & CONTRACTUAL SERVICE 525.00
20222721 06-009656 PROF & CONTRACTUAL SERVICE 826.00
20222722 06-009762 PROF & CONTRACTUAL SERVICE 652.50
Total : 66,688.50
206897 2/21/2023 000166 UNDERGROUND SERVICE ALERT/SC 120230424 06-009593 UNDERGROUND SERVICE ALERT 328.50 22-2302649 06-009593 UNDERGROUND SERVICE ALERT 110.90
Total: 439.40
206898 2/21/2023 009742 UNIFIRST CORPORATION 3242847189 06-009621 UNIFORM SERVICE AND SUPPLIES 63.84 3242847190 06-009621 UNIFORM SERVICE AND SUPPLIES 57.47 3242847191 06-009621 UNIFORM SERVICE AND SUPPLIES 107.67 3242847192 06-009621 UNIFORM SERVICE AND SUPPLIES 132.83 3242847193 06-009621 UNIFORM SERVICE AND SUPPLIES 91 .29 3242850593 06-009621 UNIFORM SERVICE AND SUPPLIES 67.89 3242850594 06-009621 UNIFORM SERVICE AND SUPPLIES 61 .52 3242850595 06-009621 UNIFORM SERVICE AND SUPPLIES 107.67 3242850596 06-009621 UNIFORM SERVICE AND SUPPLIES 132.83 3242850597 06-009621 UNIFORM SERVICE AND SUPPLIES 91.29 Total: 914.30
206899 2/21/2023 003612 US BANK CORP. TRUST 6805808 ADMNISTRATION FEE 1,250.00 Total : 1,250.00
206900 2/21/2023 007734 USA BLUE BOOK 240536 06-009594 SUPPLIES AND MATERIALS 1,152.08 Total: 1,152.08
206901 2/21/2023 013746 VIDAURI, CELENE 001941-0031 REFUNDABLE DEPOSIT 2,760 .00 Total: 2,760.00
206902 2/21/2023 002912 WATERLINE TECHNOLOGIES,INC 5618336 06-009610 OPERATING SUPPLIES 289.96 5618337 06-009610 OPERATING SUPPLIES 347.95
5618338 06-009610 OPERATING SUPPLIES 797.38
5619009 06-009610 OPERATING SUPPLIES 342.15
Page: 17
City Council Regular Meeting - Page 24 of 582
vchlist
02/16/2023 10:52:25AM
Bank code: apbank
Voucher Date Vendor
206902 2/21/2023 002912 WATERLINE TECHNOLOGIES,INC
206903 2/21/2023 000102 WHITE CAP, HD SUPPLY CONST.&
206904 2/21/2023 012137 XIO INC.
90 Vouchers for bank code : apbank
Check List
City of Lynwood
Invoice
(Continued)
5619018
50020662844
20123192
Page: 18
PO# Description/Account Amount
06-009610 OPERATING SUPPLIES 829.28
Total: 2,606.72
06-009711 OPERATING SUPPLIES 77.15
Total: 77.15
06-009713 PROF & CONTRACTUAL SERVICE 760.00
Total: 760.00
Bank total: 584,661.72
Page: 18
City Council Regular Meeting - Page 25 of 582
RESOLUTION NO. 2022.XXX
Warrant Registers Dated 02-21-2023
PASSED, APPROVED and ADOPTED this 21st day of February_, 2023.
Oscar Flores, Mayor
ATTEST:
__________________________
Maria Quiňonez, Ernie Hernandez,
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
________
Noel Tapia, Harry Wong,
City Attorney Director of Finance and Administration
City Council Regular Meeting - Page 26 of 582
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 21st day of February, 2023.
AYES: COUNCIL MEMBERS MUNOZ, SOLACHE, CAMACHO MAYOR PRO TEM
SOTO AND MAYOR FLORES
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
________________________
Maria Quiňonez,
City Clerk
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2022.XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this _21st day of February_, 2023.
___________________________
Maria Quiňonez,
City Clerk
City Council Regular Meeting - Page 27 of 582
Agenda Item # 9.
AGENDA STAFF REPORT
DATE:
February 21, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Maria Quinonez, City Clerk
Nancy Blinzler, Office Assistant
Silvia Pineda, Assistant to the City Clerk
SUBJECT:
PREVIOUS MEETING MINUTES
Recommendation:
Staff recommends that the Lynwood City Council approve the following minutes:
February 7, 2023 Regular Closed Session Meeting
February 7, 2023 Regular City Council Meeting
Background:
N/A
Discussion and Analysis:
N/A
Fiscal Impact:
N/A
Coordinated With:
N/A
City Council Regular Meeting - Page 28 of 582
ATTACHMENTS:
Description
City Council Regular Closed Session 02/07/23
City Council Regular Meeting 02/07/23
City Council Regular Meeting - Page 29 of 582
Lynwood City Council Regular Meeting Closed Session
Meeting Minutes
February 7, 2023
01. CALL TO ORDER
The City Council Regular Meeting Closed Session of the City of Lynwood met in the Council Chambers, 11350 Bullis Road Lynwood, CA 90262 or Web Conference via ZOOM - To participate via Zoom or by telephone: 1-669-900-9128 or 1-253-2158782 Meeting ID: 835 2029 8238 on the above date at 5:00 p.m.
Meeting called to order at 5:11 p.m.
Mayor Flores presiding.
02. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
City Clerk Quinonez announced the Agenda had been duly posted in accordance with the Brown Act.
03. ROLL CALL OF COUNCIL MEMBERS
PRESENT: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR
FLORES
ABSENT: NONE
STAFF CITY MANAGER HERNANDEZ, CITY ATTORNEY TAPIA,
PRESENT: CITY TREASURER CUELLAR AND CITY CLERK QUINONEZ
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NONE
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
NONE
Closed Session
MOTION: It was moved by Council Member S olache, seconded by Mayor Pro Tem Soto to recess to closed session. Motion carried by 5-0 vote.
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR
FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
City Council Regular Meeting - Page 30 of 582
The City Attorney read the City Council into closed session.
04. CLOSED SESSION
A. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.9:
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION -
Government Code section 54956.9(d)(1)
1. Name of Case: A.G. Johnson v. City of Lynwood, LASC Case No. BS175033 The City Attorney Tapia reported on the following item out of closed session:
With all five (5) members of the City Council being present, the City Council met in closed session to discuss item 4A: City staff made a presentation , City Council provided feedback and no final reportable action was taken.
Mayor Flores requested a motion to adjourn closed session.
MOTION: It was moved by Council Member Solache, seconded by Mayor Flores to adjourn closed session. Motion carried by 5-0 vote.
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
The City Council reconvened into open session at 6:00 p.m.
ADJOURNMENT
Having no further discussion, it was moved by Council Member Solache, seconded by Mayor Flores to adjourn the Closed Session meeting. Motion carried by unanimous consent and meeting adjourned at 6:01 p.m.
Maria Quiňonez, City Clerk Oscar Flores, Mayor
/nb
City Council Regular Meeting - Page 31 of 582
1 Lynwood City Council Regular Meeting
Meeting Minutes
February 7, 2023
01. CALL TO ORDER
The City Council Regular Meeting of the City of Lynwood met in the Council Chambers, 11350 Bullis Road Lynwood, CA 90262 or Web conference via ZOOM - To participate via Zoom or by telephone: 1 -669-900-9128 or 1 -253- 2158782 Meeting ID: 835 2029 8238 on the above date at 6:00 p.m.
Meeting called to order at 6:01 p.m.
Mayor Flores presiding.
02. CERTIFICATION OF AGENDA POSTING BY CITY CLERK
City Clerk Quiňonez announced the Agenda had been duly posted in accordance with the Brown Act.
03. ROLL CALL OF COUNCIL MEMBERS
PRESENT: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
ABSENT: NONE
STAFF CITY MANAGER HERNANDEZ, CITY ATTORNEY TAPIA,
PRESENT: CITY TREASURER CUELLAR AND CITY CLERK QUINONEZ
04. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by the Lynwood Sheriff’s Explorers.
05. INVOCATION
City Clerk Quiňonez offered the invocation.
06. PRESENTATIONS/PROCLAMATIONS
• Update on Law Enforcement Issues.
• City Council Members Reporting on Meetings Attended (Gov. Code Section 53232.3 D)). • City Videos.
• Proclamations.
07. COUNCIL RECESS TO:
City of Lynwood as the Successor Agency to the Lynwood Redevelopment Agency MOTION: It was moved by Council Member Solache, seconded by Council Member Camacho to recess to the City of Lynwood as the Successor Agency to the Lynwood Redevelopment Agency at 6:12 p.m. Motion carried by unanimous consent.
City Council Regular Meeting - Page 32 of 582
2 ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Lynwood Housing Authority
MOTION: It was moved by Council Member Solache, seconded by Council Member Camacho to recess to the Lynwood Housing Authority at 6:17 p.m. Motion carried by unanimous consent.
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Lynwood Public Financing Agency
MOTION: It was moved by Council Member Solache, seconded by Council Member Camacho to recess to the Lynwood Public Financing Agency at 6:20 p.m. Motion carried by unanimous consent.
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
The City Council reconvened to the regular City Council meeting at 6:25 p.m.
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
The following individuals spoke on agenda item #17 about setting a minimum wage of $25.00 per hour for qualifying healthcare workers working in the City of Lynwood:
Sovanna Polv representing Senator Lena A. Gonzalez read a letter; Adena Tessler; Fred Ortega with Prime Healthcare; Chris Wilson with Los Angeles County BixFed; City Council Regular Meeting - Page 33 of 582
3 Victor Reyes with Valley Industry and Commerce Association; Deborah Howard with California Senior Advocates League ; Jasmin Enciso with LA Metro Hispanic Chamber of Commerce; Amber King with LeadingAge California; Mayra Castaneda; Delores Aquila; Sergio Perez; Maria Arellano; Marcos Zepeda; Steve Jones; Gabriel Montoya; Michael Castillo; Lorraine Moore; Aide Castro ; AMI; Lisa Tarpin with Southern California Leadership Council.
NON-AGENDA PUBLIC ORAL COMMUNICATIONS
The following individuals spoke about non-agenda items:
Michelle Zuno; Paulette Bradley; Anthony Araujo; Carlos Sanchez; Carla De L Paz; Ruby Rivera; Wendy Ortega, Erick Jason Medal sent an email.
Consent Calendar
All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Council or staff request specific items be removed from the Consent Calendar for separate action.
Council Member Muñoz-Guevara requested that agenda item numbers thirteen (13) and fifteen (15) be pulled for separate consideration.
MOTION: It was moved by Council Member Solache, seconded by Council Member Soto to approve the balance of the consent calendar and receive a nd file staff reports. Motion carried by the following 5/0 vote:
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
08. APPROVAL OF THE WARRANT REGISTER
Approved and Adopted RESOLUTION NO. 2023.005
ENTITLED: A RESOLUTION OF THE CITY OF LYNWOOD ALLOWING AND APPROVING THE DEMANDS AND WARRANTS REGISTER DATED JANUARY 7, 2020
09. PREVIOUS MEETING MINUTES
Approved Meeting Minutes for City Council October 18, 2022 Regular Meeting
10. CITY CLERK'S QUARTERLY REPORT
Received and Filed CITY CLERK'S QUARTERLY REPORT
City Council Regular Meeting - Page 34 of 582
4 11. TREASURER'S MONTHLY INVESTMENT REPORT
Received and Filed TREASURER'S MONTHLY INVESTMENT REPORT
12. TREASURER'S QUARTERLY REPORT
Received and Filed TREASURER'S QUARTERLY REPORT
13. TREASURER'S INVESTMENT POLICY
Mayor Flores opened discussion to Council Member Muñoz-Guevara.
Council Member Muñoz-Guevara stated that the reason for pulling this item is that the Treasurer’s I nvestment Policy comes to Council on consent calendar usually every year and bearing in mind we that have a new City Treasurer, he recommended it would be wise for the Council to take leadership on our investments. He indicated that thirty- eight (38) cities and counties in the United States have taken stances in their investment policies to divest from fossil fuels industry, numerous public pension funds and college endowments have followed. He noted that Lynwood is an environmentally impacted community surrounded by freeways, commercial development and heavy industry and remarked that our residents feel the burden of GHG emissions so much more. He expressed his belief that Council should take aggressive action and lead in our region by demonstrating we will not be investing our taxpayer’s dollars and deriving profit from industries that hurt human health. Council Member Muñoz-Guevara disclosed that such industries are a relatively small portion of the City’s portfolio and specifically mentioned Exxon/Mobil investments.
Council Member Muñoz-Guevara introduced a motion to approve the Treasurer’s Investment Policy with an amendment to the unautho rized investments to reflect a prohibition on investments in firms that are predominately in the business of exploration, production, drilling and/or refining of coal, petroleum, oil and/or natural gas and he requested support from his colleagues on the item.
Mayor Flores requested a second on the motion or any comments.
Council Member Solache made a subsequent motion to table the item until the Council can further entertain discussion on this new point Council Member Muñoz-Guevara has presented.
Council Member Muñoz-Guevara seconded the subsequent motion to table the item.
Council Member Camacho indicated that the Treasurer’s Investment Policy was approved at another agency already.
City Manager Hernandez responded yes and noted the policy is adopted annually. He indicated that staff would need to discuss this new viewpoint with the City Treasurer as a viable option and review our investment group’s current contract to determine how to implement this type of policy. City Manager Hernandez stated he supports tabling the item for further discussion.
Council Member Solache requested that Deputy City Treasurer Harding be included for discussion purposes on this new point for the Treasurer’s Investment policy.
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5 Mayor Flores requested a roll call and the subsequent motion carried by the following 5/0 vote:
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
RESOLUTION: ITEM TABLED
14. APPROVAL AND AUTHORIZATION TO SOLICIT A NOTICE OF INVITING BIDS FOR
INSTALLATION OF LARGE ADVANCED METER INFRASTRUCTURE (AMI) PROJECT
PHASE I
Approved and Adopted RESOLUTION NO. 2023.006
ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING AND AUTHORIZING STAFF TO SOLICIT A NOTICE OF INVITING BIDS
FOR INSTALLATION OF LARGE ADVANCED METER INFRASTRUCTURE (AMI)
PROJECT PHASE I
15. APPROVAL AND AUTHORIZATION TO SOLICIT REQUEST FOR PROPOSAL FOR THE
CITY OF LYNWOOD ANNUAL SANITARY SEWER MAINTENANCE SERVICES Council Member Muňoz-Guevara stated that the reason for pulling this item is his concerned about the timeline specified to issue the RFP . He noted that the item allows only one month for the vendors to respond with proposals, which appears to be a condensed timeline as normally the city, and other cities usually allow a longer process of six (6) weeks or more.
Council Member Muňoz-Guevara introduced a motion to approve the item with an amendment to extend the time-period to 6 weeks instead of one month.
Mayor Flores requested a second on the motion to amend or any comments.
City Manager Hernandez made a comment that there is no issue to extend the period with the two (2) additional weeks to the process.
Council Member Camacho inquired if adding the extra two weeks would interfere with the necessity to acquire services the City is seeking.
City Manager Hernandez explained the additional time would not affect the requested services but that this item is progressing in a new direction, which is why it was presented for Council consideration. He mentioned that usually RFPs are not required to go to Council and noted that this is a new venture and staff’s desire was to inform Council of what we wanted to accomplish.
Mayor Pro Tem Soto questioned if the additional two (2) weeks would be sufficient or do we need to extend the time-period three (3) or four (4) more weeks.
City Manager Hernandez indicated that a two (2) weeks extension is adequate.
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6 MOTION: It was moved by Council Member Muňoz-Guevara to approve the item with an amendment to extend the time -period to 6 weeks , seconded by Council Member Solache to approve the amended item. Motion carried by the following 5/0 vote:
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Approved and Adopted RESOLUTION NO. 2023.007
ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING AND AUTHORIZING STAFF TO RELEASE A REQUEST FOR PROPOSALS
FOR THE CITY OF LYNWOOD ANNUAL SANITARY SEWER MAINTENANCE SERVICES
16. APPROVAL OF CHANGE ORDER NO. 1 WITH SENIORS AND JUNIORS INC. IN THE AMOUNT OF $16,472.25 FOR THE IMPROVEMENTS OF LOS ANGELES COUNTY FIRE DEPARTMENT STATION 148
Approved and Adopted RESOLUTION NO. 2023.008
ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVAL OF CHANGE ORDER NO. 1 WITH SENIORS AND JUNIORS INC. IN THE AMOUNT OF $16,472.25 FOR THE IMPROVEMENTS OF LOS ANGELES COUNTY FIRE DEPARTMENT STATION 148
New/Old Business
17. INTRODUCTION FOR FIRST READING BY TITLE ONLY AN ORDINANCE AMENDING
LYNWOOD'S MUNICIPAL CODE SETTIG A MIMINUM WAGE OF TWENTY -FIVE ($25.00) PER HOUR FOR QUALIFYING HEALTHCARE WORKERS WORKING IN THE
CITY OF LYNWOOD
MOTION: It was moved by Council Member Solache , seconded by Council Member Camacho to approve the first reading of ordinance item. Motion carried by following 3/2 vote:
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA AND
SOLACHE
NOES: MAYOR PRO TEM SOTO AND MAYOR FLORES
ABSTAIN: NONE
ABSENT: NONE
Ordinance First Reading ORDINANCE NO. 1756 FIRST READING
City Council Regular Meeting - Page 37 of 582
7 ENTITLED: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
AMENDING CHAPTER XX, SUBSECTION XX OF THE LYNWOOD MUNICIPAL CODE,
AMENDING LYNWOOD'S MUNICIPAL CODE SETTING A MINIMUM WAGE OF TWENTY-FIVE ($25.00) PER HOUR FOR QUALIFYING HEALTHCARE EMPLOYEES
WORKING IN THE CITY OF LYNWOOD
18. RENEWAL OF TORRANCE PIPELINE COMPLANY, LLC, PIPELINE FRANCHISE Council Member Mu ňoz-Guevara stated he has a couple of concerns with this agreement as he realized this item would move us to schedule a public hearing . He pointed out that this franchise agreement will set us in for fifteen (15) years and that the last environmental analysis , which is basically is the scientific study that tests whether the pipeline will ever erupt or will lead to any spills or any other similar issues, has not been done since 2019. He remarked that is almost four years ago now and he would want the company to step up , respect our community and show proactive environment action and do an environmental review before lock ing in for fifteen (15) years. Council Member Muňoz-Guevara asked if this is something that we can proceed to include within the agreement.
City Manager Hernandez responded that Community Development Director Linares in currently in conversation with the company and can certainly incorporate this detail in their conversations and report back as part of the public hearing about the feasibility of an environmental analysis.
MOTION: It was moved by Council Member Solache , seconded by Council Member Camacho to approve the item. Motion carried by following 5/0 vote:
ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Approved and Adopted RESOLUTION NO. 2023.009
ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
DECLARING ITS INTENTION TO GRANT A PIPELINE FRANCHISE TO TORRANCE
PIPELINE COMPANY LLC
19. FISCAL YEAR (FY) 2022-23 MID-YEAR FINANCIAL REVIEW AND AMENDMENT TO FY 2022-23 CLASSIFICATION AND COMPENSATION (SALARY SCHEDULE) PLANS
FOR STAFF/POSITION REALLOCATIONS
MOTION: It was moved by Council Member Camacho, seconded by Mayor Pro Tem Soto to remove Section #4 and Section #6 and approve the amended item.
Motion carried by following 5/0 vote:
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8 ROLL CALL:
AYES: COUNCIL MEMBERS CAMACHO, MUNOZ-GUEVARA,
SOLACHE, MAYOR PRO TEM SOTO AND MAYOR FLORES
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Approved and Adopted RESOLUTION NO. 2023.010 AND RESOLUTION NO. 2023.011
ENTITLED: RESOLUTION NO. 2023.10 OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2022 -23 MID-YEAR FINANCIAL REVIEW REPORT, APPROVING THE FY 2022 -23 MID -YEAR BUD GET ADJUSTMENTS TO AMEND THE FY 2022-23 ADOPTED BUDGET HERETO ATTACHED AS SCHEDULE A; AND RESOLUTION NO. 2023.11 OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING THE FISCAL YEAR 2022-23 ADOPTED BUDGET CLASSIFICATION AND
COMPENSATION (SALARY SCHEDULE) P LANS FOR STAFF/POSITION
REALLOCATIONS
CITY COUNCIL ORAL AND WRITTEN COMMUNICATION
Council Member Muñoz-Guevara indicated he had an opportunity to meet with “Keep L. A. Housed Coalition” and stated that this organization is urging us to take action. He acknowledged the urgency and that it just seems that every single level of government, from the White House to the County to the State, is telling us to address the renter and housing crisis. He remarked that these basic protections are common sense and noted that the part of the urgency is that the county is ending protections for renters March 31st. He voiced that he would hate for April 1 to arrive and we have landlords beginning eviction proceedings against Lynwood tenants because we as a body d ecided to not act despite having the power to . Council Member Muñoz-Guevara expressed hope that his colleagues will be open to at least meeting with housing advocates in the coming days to learn the issue and potentially introduce a stopgap measure or introduce an item that deals with the urgency as to what this moment demands.
Council Member Camacho offered congratulations to Lynwood students as they have achieved 100 days of school effective today and stated that the students are more than halfway finished with the school year. She remarked that those students that have accomplished the first 100 days of school have become so far smarter, including my little babies even though one fell and broke his wrist today.
Council Member Solache stated that first; he wanted to congratulate Mr. Cuellar, the newest member of our Lynwood family in celebrating his birthday recently on Saturday and to wish him a happy birthday publicly . Cou ncil Member Solache wished him a healthy and long life.
Secondly, Council Member Solache indicated being reminded earlier this by week by a local business owner here in Lynwo od regarding their business being impacted by an activity that the City Manager and he discussed that involved code enforcement being sent to address the issue.
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9 Council Member Solache also mentioned reviewing the recently imposed statewide street-vendor event policy in a conversation with the City Manager and he remarked that he was obviously someone that loves to buy elotes and enjoy them from our street vendors. He specified the need to analyze the state policy and determine how implementation of the mandate is accomplished . However, h e indicated the need explore what the language is doing or not doing for th is matter and what else can be considered to support both our business community and the street-vendor business specifically which has been here going on 20 years now and has greatly benefited our community. He stated the need to have a balanced approach with this current situation and make sure to examine the state policy in way the mandate was prepared. Council Member Solache questioned manner to implement at the local level and ensur e that street vendors also have an opportunity to be in a zone where they are not affecting businesses. He stated that a balance approach is important and reminded staff publicly that as they look at the opportunities within city there is the need to continue dialogue that would support both our business community and street vendors.
Mayor Pro Tem Soto expressed her appreciation for Black History Month and joined her colleague Council Member Cam acho in offering congratulations to Lynwood students as they achieved 100 days of school. She indicated her school held a celebration in observation of the first 100 days in which she wore a shirt that said “Principal Survived 100 Days in School” and stated that it is amazing to be serving the students as school principal. She noted it is a survival mode every single day and thanked everybody for participating in the meeting tonight.
Mayor Flores provided an opportunity for the new City Treasurer Cuellar to say a few words on his official first day and first Council meeting and bantered he is still looking for his invitation to the birthday party and joked that it was probably sent to the wrong email address. He turned the floor over City Treasurer Cuellar.
City Treasurer Cuellar introduced himself as a lifelong resident of Lynwood, and expressed his excitement for his appointment to City Treasurer. He stated he grew up being encouraged to go to school and become educated in order to give back to the community that raised him right. He acknowledged he was able to obtain an education along with serving his County and so now, he hopes to continue to serve his community. He noted it is a privilege and an honor to have the opportunity.
STAFF ORAL COMMENTS
City Manager Hernandez addressed the council comments about street vendors and stated that staff is exploring methods that we hope to be a balanced approach and will bring it forth to city council for consideration. He stated that s everal cities have tried different methods and indicated that part of the process is now reaching out to those agencies and evaluating their programs to see what works and what does not work.
City Manager noted that those of Council that have discussed with him their concerns are sympathetic to the struggles of a stree t vendor but also appreciate d the concerns of business owners who are within the region we are having those issues.
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10 Parks and Recreation Director Flores provided a couple of quick community announcements, starting with the Lynwood Run, and he noted that registration is now open for people interested in our community events. He indicated that e veryone is welcome to visit the LynwoodRun.com website for registration information . He also mentioned that the Annual Mayor's Clergy Breakfast is scheduled for Saturday, February 18th at 9 a.m. and will be held at the Lynwood Senior Center. Director Flores stated that if members of the public who want to attend the event may R. S. V. P. with the office of the Lynwood City Manager at City Hall extension 200. He also said the Lynwood Camping Adventure is almost sold -out and specified that a s of five o'clock today, there was only one spot left which means all 40 spots are on track for enjoyment by Lynwood youth. He specified that the Camping Adventure is scheduled to happen on February 24th through February 26th and noted that as always all information on these and other exciting City programs are available on our social media at Lynwood Parks.
Public Works Director Lee made a welcoming announcement regarding new hire employee Ms. Pamela Tor res as the department’s senior management analyst. City Manager Hernandez noted that she is replacing and taking over the duties of Laurie.
Community Development Director Linares provided two quick updates as he stated that Community Development did advertise an RFP for code enforcement additional personnel and that we will be presenti ng an item at the next council meeting and indicated that this additional staff will provide service with code enforcement issues in the City of Lynwood. Director Linares indicated the department also started a weekly discussion with our Sheriff's Code Enforcement and Business License team to sit down and commit to speak about issues in Lynwood to help try to alleviate any issues that are current at this time.
Mayor Flores requested a moment of silence before adjourning for the great loss of life after the devastating earthquake in the Turkey area and for those individuals we locally lost in horrific accidents as well. He acknowledged Janet Sampson, one of our lifelong educators in our school district passed away recently and Ms. Elizabeth Logan, formal teacher for Martine Special Education passed as an echo to those educators. He also noted social media student Caesar Alvarez had passed.
Council Member Solache indicated that the Battle Family lost the ir grandson and requested that City deliver a scroll on behalf of the Council and Mayor. He also noted that the mother of our current 2023 Miss Lynwood passed away and mentioned she also lost her grandmother within the last year.
Mayor Flores asked for a few seconds of silence before the motion to adjourn.
Mayor Flores thanked everyone for their participation and encouraged each person to remember to love each other and be kind no matter where we stand on any kind of issue. He requested a motion to adjourn in memory of all the individuals mentioned today, including our 10 folks from Monterey Park, our neighboring city, as stated earlier in the meeting today. He wished everybody a good night.
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11 ADJOURNMENT
Having no further discussion, it was moved by Council Member Solache, seconded by Council Member Muñoz-Guevara to adjourn the regular Lynwood City Council meeting at 8:22 p.m.
Maria Quiňonez, City Clerk Oscar Flores, Mayor
/nb
City Council Regular Meeting - Page 42 of 582
Agenda Item # 10.
AGENDA STAFF REPORT
DATE:
February 21, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Luis Cuellar, City Treasurer
Sheila Harding, Deputy City Treasurer
SUBJECT:
TREASURER'S INVESTMENT POLICY
Recommendation:
Staff recommends that the City Council adopt the following resolution entitled:
“A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING THE TREASURER’S STATEMENT OF INVESTMENT POLICY."
Background:
The investment policies and practices of the City of Lynwood are based on state laws and principles of prudent money management. This statement is intended to provide guidelines for the prudent investment of idle and surplus cash, while meeting the short and long-term cash flow demands and it is submitted annually for City review. The primary goals of these policies are:
To assure compliance with all federal, state, and local laws governing the investment of monies under the control of the Treasurer.
To protect the principal and asset holdings of the City’s portfolio.
To ensure that adequate liquidity is provided for the prompt and efficient handling of City disbursements.
To generate the maximum amount of investment income within the parameters of these investment policies and guidelines for suitable investments.
Discussion and Analysis:
Cities are required to review their Investment Policy and Strategy and seek council's approval annually. The City's Investment Policy was certified by the California Municipal Treasurer's Association (CMTA) on March 2022 and City Council Regular Meeting - Page 43 of 582
no changes have been made to the policy since being certified.
It is the Policy of the City of Lynwood, that giving due regard to the safety and risk of investment, all available funds shall be managed in conformance with these legal and administrative guidelines (the Policy) and, to the maximum extent possible, surplus funds shall be invested at the highest rates obtainable at the time of investment. Adequate operating funds shall be maintained in a depository institution(s), which affords the City safety with respect to its funds, as well as the ability to meet all of the City’s cash receipt and disbursement needs.
Fiscal Impact:
There is no fiscal impact.
Coordinated With:
FHN Financial Main Street Advisors
ATTACHMENTS:
Description
INVESTMENT POLICY - 2023
RESOLUTION - 2023
City Council Regular Meeting - Page 44 of 582
Revised 1-12-21
PURPOSE
The purpose of this Statement of Investment Policy (“Policy”) is to establish guidelines for the prudent investment of the City of Lynwood’s idle cash or reserve cash and outlines the policies essential to ensure the safety and financial strength of the City’s investment portfolio.
This policy is based on the principles of prudent money management and conforms to all applicable Federal and State Laws g overning the investment of public funds under the control of the Treasurer.
1.0 POLICY:
Annually, in accordance with California Government Code (CGC) Section 53646, the Treasurer will render to the City Council a Statement of Investment Policy for consideration and approval at a public meeting. Any investments currently held at that time that do not meet the guidelines of this policy, as changed from time to time by the City Council, shall be exempt from the requirements of this policy.
However, at the investment maturity or liquidation, such funds shall be reinvested only as provided by this policy, which offer guidance to brokers and any external investment advisors on the investment of City funds. This investment policy applies to all investment activities of the City, except for the Employees Retirement and Deferred compensation funds are excluded because it is separately managed by a third party administrator. This policy applies to all City funds, except for bond proceeds that are managed by trustees. Trustees must comply with the provision of bond’s indenture agreements.
2.0 SCOPE:
Policy statements outlined in this document apply to the City’s pooled funds, as well as other financial assets under the City Treasurer’s control unless exempted by resolution or by statute. These funds are accounted for in the City of Lynwood Comprehensive Annual Financial Report (CAFR), and include:
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Trust and Agency Funds
Retirement Pension Funds
Internal Service Funds
Fiduciary-Agency Fund
Any new fund created by the City Council unless specifically exempted
All monies entrusted to the Treasurer shall be invested in accordance to California Government Code Section 53601, 53602 and 53635.
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INVESTMENT POLICY
2 3.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard (CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio which states that:
“a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the City”.
At the time of purchase, it is the City’s intent to hold all investments until maturity to ensure the return of all invested principal. However, it is recognized that market prices of securities will vary depending on economic and interest rate condition at any point in time.
The City Treasurer, and other individuals who may be designated to mana ge the City’s investment portfolio, when acting within the intent and scope of this investment policy and other authorized written procedures, and when exercising due diligence, are relieved of personal liability for the individual security’s credit risk o r market price change of a security or other investment, provided that deviations from expectations are reported to the City of Lynwood in a timely manner and that appropriate action is taken to mitigate unforeseen adverse conditions.
4.0 OBJECTIVES:
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of moneys under the control of the Treasurer, and as specified in CGC Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a market rate of return on the funds under its control.
Taking into account the City’s daily and periodic cash flow needs, the City desires to invest all temporarily idle funds as close to 100% as is reasonably possible. At least 30% of the overa ll investment portfolio will be comprised of investments maturing in one year or less. No single investment shall be purchased with a term to maturity at the date of purchase that exceeds 5 years, except as special circumstances dictate and with the expressed approval of the City Treasurer.
The basic goal of the City’s investment policy is to ensure safety and availability of temporarily idle funds when they are needed. The primary objectives, in priority order, of the investment activities shall be:
Safety: Safety of principal is the foremost objective of the investment program. Each investment transaction must seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default, City Council Regular Meeting - Page 46 of 582
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3 or erosion of market value. The City will endeavor to preserve principal by mitigating both credit risk and market risk, as specified below.
Credit risk, which is defined as the risk of loss due to insolvency or other failure of the issuer of a security, must be mitigated by purchasing investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow.
Market risk, which is defined as market value fluctuations, must be mitigated by limiting the average maturity of the City’s investment portfolio to three years, limiting the maximum maturity of any one security to five years, structuring the portfolio to take into account historic and current cash flow analysis, eliminating the need to sell securities for the sole purpose of short term speculation.
Liquidity: Because the City operates its own water utility and bills monthly for utility services, cash flow is generated on a daily basis. Historical cash flow trends must be compared to curre nt cash flow requirements on an ongoing basis to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonable anticipated operating requirements. In managing City funds for cash flow needs, it is generally not the intention to liquidate a security prior to maturity in order to meet expected cash flow needs. However, it is important that when exceptional conditions require, and there are unexpected cash flow demands, a security sale can be done quickly.
Return on the Investment : The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City.
5.0 DELEGATION OF AUTHORITY:
In accordance with Section 53607 of the Government Code, the City of Lynwood management responsibility for the investment program is hereby delegated to the Treasurer, who shall be respon sible for all transactions undertaken and shall establish a system of control to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. Under the provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent investor standard. The City may delegate to the City Treasurer the authority to invest or reinvest City funds for a one-year period.
The Treasurer may delegate all, or a portion of his/her investment authority to a Deputy City Treasurer. Prior to the delegation of the investment authority to a Deputy City Treasurer, the Treasurer shall notify the City council and request confirmation of the delegation. Delegation of investment authority will not remove or abridge the Treasurer’s investment responsibility.
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4 The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external manage rs may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.
The Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.
The Treasurer and Deputy Treasurer shall attend at least one training session within twelve months after taking office or being appointed, and at least annually thereafter. The training session should be sponsored by a professional organization, such as, but not limited to: Government Finance Officers Association (GFOA), California Society of Munici pal Finance Officers (CSMFO), Municipal Treasurers Association of the United States & Canada (MTA, US&C), California Municipal Treasurer Association (CMTA), and Government Investment Officers Association (GIOA). Training must include some or all of the fo llowing components: investment controls, security risks, strategy risk, market risks, and compliance with Federal, State and local laws.
6.0 ETHICS AND CONFLICT OF INTEREST:
Elected officials, City officers, employees and any other individual involved in the investment operations are prohibited from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof. Furthermore, these same individuals shall disclose any material financial interest in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City. The Treasurer shall immediately disclose any financial interest which is subject to disclosure under the California Political Reform Act or would constitute a conflict of interest under Government Code Section 1090 to the City Manager. All other City Investment Officials shall immediately disclose any financial interest which is subject to disclosure under the Californ ia Political Reform Act or would constitute a conflict of interest under Government Code Section 1090 to the City Manager.
7.0 AUTHORIZED DEALERS AND INSTITUTIONS:
The City may conduct investment transactions only with banks, savings and loans associations, and registered broker -dealers. Any investments other than those purchased directly from a issuer must be purchased from (i) an individual or entity licensed by the State as a broker -dealer, as defined in Section 25004 of the Corporations Code, and which is a member of the Financial Industry Regulatory Authority, (FINRA) or (ii) from a member of a federally -regulated securities City Council Regular Meeting - Page 48 of 582
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5 exchange, or (iii) a national or state charted bank; or (iv) a federal or state association (as defined by Section 5102 of the Financial Code); or (v) a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.
The City Treasurer, either directly or through an authorized party, must investigate and evaluate all financial institutions, on an annual basis, that desire to do business with the City in order to determine whether they are adequately capitalized and whether they make markets in securities that are appropriate to the City’s needs.
This may be accomplished by the following: a financial institution to complete and return an appropriate questionnaire, audited financial statements and proof of Financial Industry Regulatory Authority (FINRA) registration and good standing.
Nothing in this section precludes the City from engaging the services of a Registered Investment Advisory firm to assist the City, on a discretionary basis, with the investment of the City’s portfolio.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS:
Investments must be made in accordance with the “Prudent Investor Rule” that is cited under the heading “Prudence.”
The City is subject to California Government Code, Sections 53600 et seq. within the context of these limitations, the following investments are authorized, subject to the restrictions noted below:
A. United States Treasu ry Obligations, Bills, Notes, and Bonds or similar instruments for which the full faith and credit of the United States is pledged for payment of principal and interest. There is no limitation on the percentage of the City’s surplus funds that can be inve sted in these instruments. The maximum maturity period may not exceed 5 years.
B. US Agency and/or Obligations, Securities that represent an obligation of several agencies or instrumentalities which administer selected lending programs of the U.S. Government. These agencies include , but are not limited to, obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, the Federal Home Loan Board (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Federal Farm Credit Bank (FFCB), and the Federal National Mortgage Association (FNMA).
Although there is no percentage limitation on investme nts in these obligations, the “Prudent Investor Rule” applies to obligations issued by any of these agencies, because U.S. G overnment backing is implied rather than guaranteed. The maximum maturity period may not exceed 5 years.
C. Commercial Paper rated “P -1” by Moody’s Investor Services or “A -1” by Standard & Poor’s, and issued by a domestic corporation having assets in excess of $500,000,000 and has a long -term debt rating of “A2” or higher by Moody’s or “A” or higher rating by S& P. The purchase of eligible commercial paper may not exceed 270 days maturity nor represent more than 5% of the outstanding paper of an issuing corporation. No more than 2% of the market value of the portfolio may be invested in commercial paper issued by one corporation. Medium term corporate holdings must be City Council Regular Meeting - Page 49 of 582
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6 included when calculating this 2% limitation. The Purchase of commercial paper not to exceed 25% of the City’s surplus funds.
D. FDIC Insured Certificates of Deposit issued by a nationally or state - chartered bank, or a state of federal savings and loan association, or by a state-licensed branch of a foreign bank. The invested amount per institution shall not exceed the current FDIC insured limit (currently $250,000). Purchases of eligible FDIC insured certificates of deposit shall not exceed five years to maturity.
E. Negotiable C ertificates of Deposit issued by a national or state -charted bank or a state or federal saving and loan association. Negotiable certificates of deposit may not exceed 30% of the City’s total portfolio.
Certificates purchased from a bank may not exceed 30% of the City’s total portfolio. Certificates purchased from a bank may not exceed the shareholder’s equity in the bank. Certificates over $500,000 purchased from savings and l oan associations may not exceed the net worth of the association. The maximum maturity period may not exceed 5 years.
F. State of California Local Agency Investment Fund (LAIF) Funds may be invested in LAIF; a State of California managed investment pool, up to the maximum dollar amounts per separate legal entity in conformance with the account balance limits authorized by the State Treasurer. Annual review of LAIF’s Pool Money Investment Board Annual Report will be conducted to continue to ensure LAIF’s inv estment policy, standards, and rate of return are compatible with the City’s risk tolerance. Maximum investment limits are dependent upon limits established under the Local Agency Investment Funds guidelines.
G. Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures’ agreements.
H. The City may invest in non-negotiable time deposits that are collateralized as required by the California Government Code, and that are maintained in banks and savings and loans associations that meet the requirement for accepting deposits of public funds. Because time deposits are not liquid, no more than 25% of the City’s temporarily idle funds may be invested in this category. A maximum maturity period may not exceed one year.
I. Medium term corporate notes with a maximum maturity of 5 years may be purchased. Securities eligible for investment must be rated “A2” or higher by Moody’s or “A” or higher rating by S&P. Medium term notes may not exceed 30% of the market value of the City’s portfolio, and not more than 2% of the market value of the portfolio may be invested in notes issued by any one corporation. Commercial paper holdings must be included when calculating this 2 % limitation . The maximum maturity period may not exceed 5 years.
J. Shares of beneficial interest issued by diversified management companies, that are money market funds (MMFs) registered with the City Council Regular Meeting - Page 50 of 582
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7 Securities and Exchange Commission under the Investment A dvisory Company Act of 1940 (15 U.S.C. Sec 80a -1 et seq.). To be eligible for investment pursuant to this subdivision these companies shall either (I) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years ’ experience investing in money market instruments with assets in exces s of $500,000,000.
The purchase price of the MMF shares shall not exceed 20% of the City's surplus funds. No more than 10% of the City’s surplus funds may be invested in shares of any one MMF.
K. Supranational Debt Obligations . United States dollar -denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development of the World Bank (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IABD), with maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments must have a minimum rating of AA or better by at least two of the following NRSRO’s: Moody’s, S&P , or Fitch, and shall not exceed 30% of the City’s surplus funds, and not more than 5% of the market value of the portfolio may be invested in notes issued by any one supranational. The maximum maturity period may not exceed 5 years.
9.0 UNAUTHORIZED INVESTMENTS:
State and Federal laws notwithstanding, any investment not specifically described herein including, but not limited to, reverse repurchase agreements, derivatives, options, futures, zero coupon bonds, inverse floaters, range notes, first mortgages or trust deeds, collateralized mortgage obligations, (CMO’s), limited partnerships, real estate investments, trusts (REIT’s), open -end mutual funds with a weighted average maturity greater than 180 days, unregulated and/or uninsured investment pools, common stock, preferred stock, commodities, precious metals, securities with high price volatility, limited marketability (less than three active bidders), securities that may default on interest payments and any other speculative investment deemed inappropriate under the prudent investor standard are strictly prohibited.
10.0 REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City of Lynwood must be in compliance with Section 8.0 Authorized and Suitable Investments at the time of purchase. The Quar terly Investment report will identify any securities that do not comply. The Treasurer shall report any instances of noncompliance identified through the review of the portfolio to the City Council.
11.0 COLLATERAL REQUIREMENTS:
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8 Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq.
In order to reduce market risk and provide a level of security for all funds, the market value of securities that underlay Certificates of Deposit shall be valued at 110% of the market value of principal and accrued interest. Repurchase Agreements shall be valued at 102% of the market value of principal and accrued interest.
In conformity with the provisions of the Federal Bankruptcy Code that provide for the liquidation of securities held as collateral, the only securities acceptable as collateral are cer tificates of deposit, commercial paper, eligible bankers acceptances, and medium term notes or securities that are the direct obligation of, or are fully guaranteed as to principal and interest by the United States or any City of the United States.
An independent third party with whom the City has a current custodial agreement will always hold collateral.
The right of collateral substitution is granted with prior approval of the City Treasurer.
12.0 SAFEKEEPING AND CUSTODY
All securities owned by the City shall be held in safekeeping by the City’s custodial bank or by a third party bank trust department, acting as agent for the City under the terms of a custody agreement or master repurchase agreement. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a Delivery-Versus-Payment (DVP) basis through the City’s safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.
13.0 DIVERSIFICATION:
The Treasurer shall maintain a diversified portfolio to minimize the risk of loss resulting from over concentration of assets in a specific maturity, issuer, or security type. With the exception of U.S. Treasury securities, Federal agencies, and LAIF, no more than 50% of the City’s total investment portfolio will be invested in with a single institution. Additionally, no more than 2%, calculated at the time of purchase, of the portfolio shall be invested in one name or with one credit counterparty.
14.0 MAXIMUM MATURITIES:
To the extent possible the portfolio will attempt to match its investments with anticipated cash flow requirements. Matching maturities with cash flow dates will reduce the need to sell securit ies prior to maturity, thus reducing a potential realized loss. The portfolio will not directly invest in securities maturing more than five (5) years from the date of purchase pursuant to Government Code Section City Council Regular Meeting - Page 52 of 582
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9 53601. (Excluding LAIF). The weighted average maturity of the portfolio shall not exceed 3 years.
Reserve funds may be invested in securities exceeding one year if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. No portion of the portfolio may exceed five years.
15.0 INTERNAL CONTROL:
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that those objectives are met. The concept of reasonable as surance recognizes that the cost of a control should not exceed the benefits to be derived and that the valuation of costs and benefits requires estimates and judgments by management. Internal control procedures shall address:
Separation of duties
Control of collusion
Custodial safekeeping
Avoidance of physical delivery of securities
Written confirmation of transfers for investments and wire transfers Written procedures for placing investment transactions Delegation of authority to investment officials
16.0 PERFORMANCE STANDARDS:
The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs:
a. Investment Strategy: The portfolio’s basic investment strategy is to buy and hold investments until maturity. However the Treasurer may sell a security due to adverse changes in credit risk or , due to unexpected cash flow needs , or to improve the quality, yield, or targe t duration of the portfolio.
b. Market Yield (Benchmark): The City portfolio is managed with the objective of obtaining a market rate of return, commensurate with identified risk constraints and cash flow characteristics. The appropriate benchmarks will be periodically reviewed by the City Treasurer.
17.0 REPORTING:
In compliance with Government code Section 53607 and 53646, the Treasurer shall provide the City Council quarterly investment reports, which provide a clear picture of the status of the current investment portfolio.
The Quarterly Investment Report will include the following information: portfolio statistics, portfolio performance, compliance reporting requirements, and investment trading:
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10 Portfolio Statistics
Classification of the inve stment, the percentage of the total portfolio which each type of investment represents, issuer, CUSIP, purchase date, rating of security, date of maturity, par and dollar amount invested on all securities and investments.
Current market value and the source of the market value. Weighted average maturity of the investment portfolio. Maturity aging by type of investment.
Unrealized gain or loss resulting from appreciation or depreciation in the market value of securities.
Compliance Reporting Requirements
Cash management projection: Statement denoting the ability of the City to meet its expected obligations over the next six months. Statement of compliance with the Policy: Reasons for and number of violations or exceptions to the investment policy during the quarter being reported on, as well as prior violations or exceptions which have not yet been corrected.
Investment Trading Activity
All investment transactions occurring during the quarter whether or not the transaction has been fully settled.
A description of any security purchased during the quarter with a maturity exceeding five years.
A description of any security downgraded below the minimum acceptable ratings level (below prime for short term ratings, or below investment grade for long term ratings).
18.0 INVESTMENT POLICY ADOPTION:
The Treasurer shall annually render to the City Council a Statement of Investment policy as required in Section 53646(a) of the Government Code. The City’s investment policy shall be adopted by reso lution of the City Council and shall be reviewed annually; any modification made thereto must be approved by the legislative body.
19.0 GLOSSARY
Definitions of investment-related terms are listed on Exhibit A.
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Revised 1-12-21
EXHIBIT A
GLOSSARY
ACCRETION: Adjustment of the difference between the price of a bond bought at an original discount and the par value of the bond.
AGENCIES: Federal agency securities and/or Government -sponsored enterprises (GSEs), also known as U.S. Government instrumentalities. Securities issued by Government National Mortga ge Association (GNMA) are considered true agency securities, backed by the full faith and credit of the U.S. Government. GSEs are financial intermediaries established by the federal government to fund loans to certain groups of borrowers, for example hom eowners, farmers and students and are privately owned corporations with a public purpose. The most common GSEs are Federal Farm Credit System Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Association, and Federal National Mortgage Association.
AMORTIZATION: Accounting procedure that gradually reduces the cost value of a limited life or intangible asset through periodic charges to income. For fixed assets, the term used is “depreciation”. It is common practice to amortize any premium over par value paid in the purchase of preferred stock or bond investments.
APPRECIATION: Increase in the value of an asset such as a stock bond, commodity or real estate.
ASKED PRICE: The price a broker/dealer offers to sell securities.
ASSET BACKED: A type of security that is secured by receivables, such as credit card and auto loans. These securities typically pay principal and interest monthly.
BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
This money market instrument is used to finance international trade.
BASIS POINT: One-hundredth of one percent (i.e., 0.01%).
BENCHMARK: A comparative base for measuring the performan ce or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investment.
BID PRICE: The price a broker/dealer offers to purchase securities.
BOND: A financial obligation for which the issuers promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.
BOOK RATE OF RETURN: A measure of a portfolio’s performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the ending value, and includes interest earnings and realized gains and losses on the portfolio.
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12 BOOK VALUE: The value at which a debt security is shown on the holder’s balance sheet. Book value is acquisition cost less amortization of premium or accretion of discount.
BROKER: A broker acts as an intermediary between a buyer and seller for a commission and does not trade for his/her own risk and account or inventory.
CALLABLE SECURITIES: A security that can be redeemed by the issuer before the scheduled maturity date.
CASH FLOW: An analysis of all changes that affect the cash account during a specified period.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure r epayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) : A type of mortgage -backed security that creates separate pools of pass -through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds' prospectus.
COMMERCIAL PAPER: Short-term, unsecured, negotiable promissory notes of corporations.
COMMERCIAL RECEIVABLES: Business debt owed to a creditor which may be used as collateral for asset backed securities. These receivables include equipment leases, building leases, and other business loans.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual financial report for the City. It includes combined statements and basic financial statements for each individual fund and account g roup prepared in conformity with Generally Accepted Accounting Principles (GAAP).
CONDUIT FINANCING: A financing in which a governmental agency issues debt and the proceeds of the issue are loaned to a nongovernmental borrower who then applies the proceeds for a project financing or (if permitted by federal tax laws for a qualified 501(c)(3) bond) for working capital purposes.
CONSUMER RECEIVABLES: Consumer debt owed to a creditor which may be used as collateral for asset backed securities. These rec eivables include credit card, auto, and home equity loans.
CORPORATE NOTE: Debt instrument issued by a private corporation.
COUPON: The annual rate at which a bond pays interest.
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13 CREDIT ANALYSIS: An analysis of the economic and financial conditions to determine creditworthiness or the ability to meet debt obligations.
CREDIT RATINGS: A grade given to a debt instrument that indicates its credit quality.
Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of the issuer's financial strength, or its ability to pay principal and interest in a timely fashion. High graded credit ratings are as follows:
Moody's Standard & Poor’s Fitch
Long
Term
Short
Term
Long
Term
Short
Term
Long
Term
Short
Term
Aaa
P1
AAA
A1+
AAA
A1+
Aa1 AA+ AA+
Aa2 AA AA
Aa3 AA- AA-
A1 A+ A1 A+
A2 A A
A3 P2 A- A2 A- A2 Baa1 BBB+ BBB+
CREDIT RISK: The risk that an obligation will not be paid and a loss will result due to a failure of the issuer of a security.
CUSIP: Stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most securities, including: stocks of all registered U.S. and Canadian companies, and U.S. government and municipal bonds. The CUSIP system —owned by the American Bankers Association and operated by Standard & Poor’s —facilitates the clearing and settlement process of securities. The number consists of nine characters (including letters and numbers) that uniquely identify a company or issuer and the type of security.
CURRENT YIELD: The annual interest on an investment divided by the current market value. Since the calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his/her own risk and account or inventory.
DEBENTURES: A bond secured only by the general credit of the issuers.
DEFEASED BOND ISSUES: Issues that have sufficient money to retire outstanding debt when due, so that the agency is released from the co ntracts and covenants in the bond documents.
DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of money for the securities.
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14 DERIVATIVE: A financial instrument that is based on, or derived from, some underlying asset, reference date, or index.
DIRECT ISSUER: Issuer markets its own paper directly to the investor without use of an intermediary.
DISCOUNT: The difference between the cost of a security and its value at maturity when quoted at lower than face value.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns and risk profiles.
DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed -income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. Duration measures the price sensitivity of a bond to changes in interest rates.
EARNED INCOME YIELD THIS PERIOD (annu alized): The Total net Earnings this period divided by Average Daily Portfolio Balance and the number of days in the period, multiplied by 365 (or 360 depending on the profile setting), and then multiplied by 100.
FACE VALUE: The principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.
FAIR VALUE: The amount at which a security could be exchanged between willing parties, other than in a forced or liquidation sale. If a market price is available, the fair value is equal to the market value.
FANNIE MAE: Trade name for the Federal National Mortgage Association (FNMA), a U.S. Government sponsored enterprise.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that provides insurance on bank deposits, guaranteeing deposits to a set limit per account, currently $100,000.
FEDERAL FARM CRE DIT BANK (FFCB): Government-sponsored enterprise that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks and the Banks for Cooperatives. Its securities do not carry direct U.S. government guarantees.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is considered to be the most sensitive indicator of the direction of interest rates, as it is currently pegged by the Federal Reserve through open-market operations.
FEDERAL GOVERNMENT AGENCY SECURITIES : Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.
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15 FEDERAL HOME LOAN BANKS (FHLB): Government sponsored enterprise (currently made up of 12 regional banks) that regulates and lends funds and provides correspondent banking services to member commercial banks, th rift institutions, credit unions and insurance companies. Although the banks operate under federal charter with government supervision, the securities are not guaranteed by the U. S. Government.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Government sponsored enterprise that helps maintain the availability of mortgage credit for residential housing. FHLMC finances these operations by marketing guaranteed mortgage certificates and mortgage participation certificates. Its discount notes and bonds do not carry direct U.S. government guarantees.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): Government sponsored enterprise that is the largest single provider of residential mortgage funds in the United States. FNMA is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed -rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA securities do not carry direct U.S. Government guarantees.
FEDERAL OPEN MARKET COMMITTEE (FOMC): A committee of the Federal Reserve Board, which establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
FEDERAL RESERVE SYSTEM: The central bank of the U.S. which consists of a seven member Board of Governors, 12 regional banks and about 5,700 commercial banks that are members.
FED WIRE: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds throug h debits and credits of funds between participants within the Fed system.
FREDDIE MAC: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. government sponsored enterprise.
FITCH INDIVIUAL BANK RATINGS: Individual Ratings are assigned to banks that are legal entities. These ratings, which are internationally comparable, attempt to assess how a bank would be viewed if it were entirely independent and could not rely on external support. These ratings are designed to assess a bank's exposure to, appetite for, and management of risk, and thus represent the agency's view on the likelihood that it would run into significant financial difficulties such that it would require support. The ratings are as follows:
A. A very strong bank - Characteristics may include outstanding profitability and balance sheet integrity, franchise, management, operating environment or prospects.
B. A strong bank - There are no major concerns regarding the bank.
Characteristics may include strong profitability and balance sheet integrity, franchise, management, operating environment or prospects.
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INVESTMENT POLICY
16 C. An adequate bank, which, however, possesses one or more troublesome aspects. There may be some concerns regarding its profitability and balance sheet integrity, franchise, management, operating environment or prospects .
D. A bank that has weaknesses of internal and/or external origin. There are concerns regarding its profitability and balance sheet integrity, franch ise, management, operating environment or prospects. Banks in emerging markets are necessarily faced with a greater number of potential deficiencies of external origin.
E. A bank with very serious problems, which either requires or is likely to require external support.
F. A bank that has either defaulted or, in Fitch Ratings' opinion, would have defaulted if it had not received external support. Examples of such support include state or local government support, (deposit) insurance funds, acquisition by some other corporate entity or an injection of new funds from its shareholders or equivalent.
Note: Gradations may be used among the ratings A to E: i.e. A/B, B/C, C/D, and D/E. No gradations apply to the F rating.
GINNIE MAE: Trade name for the Government National Mortgage Association (GNMA), a direct obligation bearing the full faith and credit of the U.S. Government.
GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard -setting body, associated with the Financial Accounting Foundation, which pr escribes standard accounting practices for governmental units.
GUARANTEED INVESTMENT CONTRACTS (GICS): An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.
INACTIVE DEPOSITS: Funds not immediately needed for disbursement.
INTEREST RATE: The annual yield earned on an investment, expressed as a percentage.
INTEREST RATE RISK: The risk of gain or loss in market values of securities due to changes in interest-rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.
INVESTMENT AGREEMENTS: A contract providing for the lending of issuer funds to a financial institution which agrees to repay the funds with intere st under predetermined specifications.
INVESTMENT GRADE (LONG TERM RATINGS): The minimum, high quality ratings for long term debt such as corporate notes. Investment Grade ratings are as follows: A3 (Moody’s), A- (S&P), and A- (Fitch).
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17 INVESTMENT PORT FOLIO: A collection of securities held by a bank, individual, institution or government agency for investment purposes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash with minimum risk of principal.
LOCAL AGENCY INV ESTMENT FUND (LAIF): An investment pool sponsored by the State of California and administered/managed by the State Treasurer. Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for the purpose of investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.
LOCAL AGENCY INVESTMENT POOL: A pooled investment vehicle sponsored by a local agency or a group of local agencies for use by other local agencies.
MARK TO MARKET: Current value of securities at today's market price.
MARKET RISK: The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. Systematic risk of a se curity that is common to all securities of the same general class (stocks, bonds, notes, money market instruments) and cannot be eliminated by diversification (which may be used to eliminate non - systematic risk).
MARKET VALUE: The price at which a securi ty is currently being sold in the market.
See FAIR VALUE.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date that the principal or stated value of a debt instrument becomes due and payable.
MEDIUM-TERM NOTES (MTNs): Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
MODIFIED DURATION: The percent change in price for a 100 basis point change in yields. This is a measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET: The market in which short term debt instruments (Treasury Bills, Discount Notes, Commercial Paper, Banker’s Acceptances and Negotiable Certificates of Deposit) are issued and traded.
MORTGAGED BACKED SECURITIES: A type of security that is secured by a mortgage or collection of mortgages. These securities typically pay principal and interest monthly.
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18 MUNICIPAL BONDS: Debt obligations issued by states and local governments and their agencies, including cities, c ounties, government retirement plans, school districts, state universities, sewer districts, municipally owned utilities and authorities running bridges, airports and other transportation facilities.
MUTUAL FUND: An entity that pools money and can invest in a variety of securities which are specifically defined in the fund’s prospectus.
NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.
NET PORTFOLIO YIELD: Calculation in which the 365-day basis equals the annualized percentage of the sum of all Net Earnings during the period divided by the sum of all Average Daily Portfolio Balances.
NEW ISSUE: Term used when a security is originally “brought” to market.
NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
PAR VALUE: The amount of principal which must be paid at maturity. Also referred to as the face amount of a bond. See FACE VALUE.
PORTFOLIO: The collection of securities held by an individual or institution.
PREMIUM: The difference between the par value of a bond and the cost of the bond, when the cost is above par.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. These dealers are authorized to buy and sell government securities in direct dealing with the Federal Reserve Bank of New York in its execution of market oper ations to carry out U.S. monetary policy. Such dealers must be qualified in terms of reputation, capacity, and adequacy of staff and facilities.
PRIME (SHORT TERM RATING): High quality ratings for short term debt such as commercial paper. Prime ratings are as follows: P1 (Moody’s), A1 (S&P), and F1 (Fitch).
PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.
PROSPECTUS: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the Securities and Exchange Commission that typically includes information on the issuer, the issuer’s business, the proposed use of City Council Regular Meeting - Page 62 of 582
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19 proceeds, the experience of the issuer’s management, and certain cert ified financial statements (also known as an “official statement”).
PRUDENT INVESTOR STANDARD: A standard of conduct for fiduciaries. Investments shall be made with judgment and care --under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
PUBLIC DEPOSITS: A bank that is qualified under California law to accept a deposit of public funds.
PURCHASE DATE: The date in which a security is purchased for settlement on that or a later date. Also known as the “trade date”.
RATE OF RETURN: 1) The yield, which can be attained on a security, based on its purchase price or its current market price. 2) Income earned on an investment, expressed as a percentage of the cost of the investment.
REALIZED GAIN (OR LOSS): Gain or loss resulting from the sale or disposal of a security.
REGIONAL DEALE R: A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.
REPURCHASE AGREEMENT (RP or REPO): A transaction in which a counterparty or the holder of securities (e.g. investment dealer) sells these securities to an investor (e.g. the City) with a simultaneous agreement to repurchase them at a fixed date. The security "buyer" (e.g. the City) in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate the “buyer” for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, which is, increasing bank reserves.
REVERSE REPURCHASE AGREEMENT (REVERSE REPO): The opposite of a repurchase agreement. A reverse repo is a transaction in which the City sells securities to a counterparty (e.g. investment dealer) and agrees to repurchase the securities from the counterparty at a fixed date. The counterparty in effect lends the seller (e.g. the City) money for the period of the agreement with terms of the agreement structured to compensate the buyer.
RISK: Degree of uncertainty of return on an asset.
SAFEKEEPING: A service which banks offer to clients for a fee, where physical securities are held in the bank’s vault for protection and book-entry securities are on record with the Federal Reserve Bank or Depository Trust Company in the bank’s name for the benefit of the client. As agent for the client, the safekeeping bank settles securities transactions, collects coupon payments, and redeems securities at maturity or on call date, if called.
SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation.
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20 SEC RULE 15C3-1: See UNIFORM NET CAPITAL RULE.
SECONDARY MARKET: A market for the repurchase and resale of outstanding issues following the initial distribution.
SECURITIES: Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness or equity.
SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds.
SPREAD: The difference between two figures or percentages. It may be the difference between the bid (price at which a prospective buyer offers to pay) and asked (price at which an owner offers to sell) prices of a quote, or between the amount paid when bought and the amount received when sold.
STRUCTURED NOTE: A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include “inverse floating rate” notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising and “dual index floaters”, which pay interest based on the relationship between two other interest rates, for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
STUDENT LOAN MARKET ASSOCIATION (SLMA): Government-sponsored enterprise that purchases student loans from originating financial institutions and provides financing to state student loan agencies. It provides a national secondary market for federally - sponsored student loans and credit to participants in the post secondary education lending sector.
SUBORDINATED DEBT: Debt over which senior debt has priority. In the event of a bankruptcy, subordinated debt holders receive payment only after senior debt holders are paid in full.
TIME DEPOSIT: A deposit with a California bank or savings and loan association for a specific amount and with a specific maturity date and interest rate. Deposits of up to $100,000 are insured by FDIC. Deposits over $100,000 are collateralized above the insurance with either government securities (at 110% of par value), first trust deeds (at 150% of par value), or letters of credit (at 105% of par value).
TOTAL RATE OF RETURN: A measure of a portfolio’s performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the ending value, and includes interest earnings and realized and unrealized gains and losses on the portfolio. For bonds held to maturity, total return is the yield to maturity.
TRUSTEE OR TRUST COMPANY OR TRUST DEPARTMENT OF A BANK: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.
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21 UNDERWRITER: A dealer which purchases a new issue of municipal securities for resale.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
U.S. GOVERNMENT AGENCY SECURITIES: Securities issued by U.S. government agencies, most of which are secured only by the credit worthiness of the particular agency.
See AGENCIES.
U.S. TREASURY OBLIGATIONS: Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are the benchmark for interest rates on all other securities in the U.S. The Treasury issues both discounted securities and fixed coupon notes and bonds. The income from Treasury securities is exempt from state and local, but not federal, taxes.
TREASURY BILLS: Securities issued at a discount with initial maturities of one year or less. The Treasury currently issues three -month and six-month Treasury bills at regular weekly auctions. It also issues very short-term “cash management” bills as needed to smooth out cash flows.
TREASURY NOTES: Intermediate-term coupon -bearing securities with initial maturities of one year to ten years.
TREASURY BOND: Long-term coupon-bearing securities with initial maturities of ten years or longer.
UNREALIZED GAIN (OR LOSS): Gain or loss that has not become actual. It becomes a realized gain (or loss) when the security in which there is a gain or loss is actually sold.
See REALIZED GAIN (OR LOSS).
VOLATILITY: Characteristic of a security, commodity or market to rise or fall sharply in price within a short-term period.
WEIGHTED AVERAGE MATURITY: The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.
WEIGHTED AVERAGE YIELD AT THE END OF PERIOD: The summation of each investment’s period-end scheduled book value multiplied by its ending sub -period yield and divided by the total scheduled book value. Investments maturing on or before the end date of the report period will not affect the weighted average yield.
WHEN ISSUED (WI): Short form of “when, as, and if issued.” WI refers to a transaction made conditionally because a security, although authorized, has not yet been issued with the exception of new Treasury, Agency, and Corporate issuances to settle within 21 days.
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22 YIELD: The annual rate of return on an investment expressed as a percentage of the investment. See CURRENT YIELD; YIELD TO MATURITY.
YIELD CURVE: Graph showing the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.
YIELD TO MATURITY: Concept used to determine the rate of return if an investment is held to maturity. It takes into account purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments. It is the rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.
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RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE TREASURER’S STATEMENT OF INVESTMENT POLICY
WHEREAS, the Treasurer is responsible for the City of Lynwood’s cash flow whereby funds are transferred from various accounts to meet operating obligations; and
WHEREAS, the Treasurer is also responsible for the investment of idle cash; and
WHEREAS, the Treasurer has prepared guidelines for a prudent investment policy; and
WHEREAS, the policy contains certain investment criteria; and
WHEREAS, the basic premise of the policy is to ensure the safety of funds and assure that the Lynwood City Council’s cash needs are met.
NOW, THEREFORE, the Lynwood City Council does hereby find, proclaim, order and resolve as follows:
Section 1 . That the Treasurer’s Statement of Investment Policy attached hereto as Exhibit “A” is hereby approved.
Section 2. This resolution shall go into effect immediately upon its adoption
PASSED, APPROVED and ADOPTED this ____ day of February 2023.
________________________________
Oscar Flores, Mayor
ATTEST: APPROVED AS TO CONTENT:
_____________________________ __________________________ Maria Quinonez, City Clerk Ernie Hernandez, City Manager
APPROVED AS TO FORM:
______________________________
Noel Tapia, City Attorney
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Agenda Item # 11.
AGENDA STAFF REPORT
DATE:
February 21, 2023
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Ernie Hernandez, City Manager
PREPARED BY:
Harry Wong, Director of Finance & Administration
SUBJECT:
FY2021-22 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
Recommendation:
It is recommended that the City Council consider:
1 .
Receiving and filing the City’s Fiscal Year 2021-22 Annual Comprehensive Financial Report (ACFR)
Background:
The City’s auditor, The Pun Group, LLP (TPG), an independent auditor and one of the well-recognized regional CPA firms in California, completed the audit of the City’s annual financial states for the fiscal year ending June 30, 2022. The audited financial statements are incorporated into an ACFR.
TPG audited the City’s books and issued an un
modified (“clean”) opinion on the City’s financial statements. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America (or “GAAP”) and the standards applicable to the financial audits contained in the Government Audit Standards, issued by the Comptroller General of the United States. These standards require that the auditors plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement and accurately reflects the City’s financial position.
Discussion and Analysis:
ACFR includes the financial information for all funds of the City. The Introductory Section of the report includes a table of contents, an organization chart, a transmittal letter, and financial awards. The Financial Section contains the independent auditor’s report, the management discussion and analysis (MD&A), the financial statements, notes to the financial statements, and supplementary information. The Statistical Section provides trend financial and demographic data, which is useful for assessing the City’s financial condition. Users of the ACFR should read the financial statements in conjunction with the transmittal letter, MD&A, notes, and supplementary information to gain a full understanding of the City’s financial activities.
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The City’s ACFR was prepared according the Governmental Accounting Standard Board (GASB) Statement, and the government-wide financial statements provide information about the City’s overall financial status with the addition of long-term perspective. The focus is on the City, as a whole organization, providing a comprehensive presentation of the City’s financial information from a commercial (private) business point of view. Full accrual accounting and information for capital assets (including infrastructure) and long-term obligations are required as part of the financial statements. The City’s ACFR is submitted to the Government Financial Officer’s Association of the United States and Canada (GFOA) for consideration of Award of the Certificate of Achievement for Excellence in Financial Reporting. To receive the award, a government must publish an efficiently organized report that satisfies both GAAP and applicable laws and regulations. The City has not received such award for the last five years since FY2016-17, staff has diligently prepared this year’s ACFR and has submitted the FY2021-22 ACFR for award consideration.
On June 30, 2022, the City’s governmental funds reported a combined fund balances of $114.3 million, which is an increase of $19.4 million or 20.4%, from $94.9 million on June 30, 2021. The General Fund revenues recovered from the COVID-19 pandemic, increased $5.9 million or 15.3%, from $38.6 million in FY2020-21 to $44.5 million in FY2021-22. However, $4.5 million or over three fourths, of the revenue increase was attributed to increase in tax revenues. City’s overall economic activities have not fully recovered from the COVID-19 pandemic. General fund expenditures decreased $4.6 million or 14.6%, from $31.6 million in FY2020-21 to $27.0 million in FY2021-22.
The primary reason for the decrease was a $5.7 million one-time reclassification of qualified safety expenditures ($4.2 million Fire cost and $1.5 million Sheriff cost) to the American Rescue Act Plan (ARPA) Fund. Without the expenditure reclassification, General Fund expenditures would have been $32.7 million for FY2021-22, which actually increased $1.1 million or 3.5% from prior year. As of June 30, 2022, General Fund’s fund balance was at $32.7 million.
The $32.7 million fund balance of the general fund as of June 30, 2022 was comprised of $17,000 non-spendable, $1.0 million restricted, $4.0 million committed, $27.5 million assigned (for ARPA and Public Works Projects, including Lynwood and Ham Parks improvements, and reserve for Landscape Fund and Vehicle Fund deficits), and $209,000 unassigned.
Other financial highlights in FY2021-22 included that:
• City received half (first installment) of the ARPA fund of $12.2 million in FY21-22. The second half of $12.2 million was received in September 2022, which would be recognized in the FY2022-23 ACFR.
Fiscal Impact:
There is no fiscal impact associated with this action.
Coordinated With:
City Manager's Office
Legal Counsel
ATTACHMENTS:
Description
FY2021-22 ACFR
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ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
YEAR ENDED
JUNE 30, 2022
ACFR
FISCAL YEAR
2021-2022
FINAL DRAFT 02.16.2023
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Annual Comprehensive Financial Report
City of Lynwood, California
Year Ended June 30, 2022
With Report of Independent Auditors
Prepared By: Finance Department
FINAL DRAFT 02.16.2023
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City of Lynwood
Year Ended June 30, 2022
Table of Contents
PAGE
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ....................................................................................................................................................... i City Organizational Chart ..................................................................................................... ...................................... vii Finance Department Organizational Chart ................................................................................................................. viii City Officials ................................................................................................................................................................ ix
FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ........................................................................................ 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5
Basic Financial Statements:
Government-Wide Financial Statements
Statement of Net Position .............................................................................................................................. 18 Statement of Activities ....................................................................................................... ........................... 20
Fund Financial Statements:
Governmental Funds
Balance Sheet ................................................................................................................. ............................... 26 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ............................................................................... 29 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................ 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................... 32
Proprietary Funds:
Statement of Net Position .............................................................................................................................. 34 Statement of Revenues, Expenses, and Changes in Net Position .................................................................. 37 Statement of Cash Flows ............................................................................................................................... 38
Fiduciary Fund:
Statement of Fiduciary Net Position .............................................................................................................. 43 Statement of Changes in Fiduciary Net Position ........................................................................................... 44
Notes to the Basic Financial Statements ............................................................................................................ 49
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule – General Fund ................................................................................................. 111 Budgetary Comparison Schedule – Housing Authority Special Revenue Fund .................................................... 112 Budgetary Comparison Schedule – Landscape Maintenance Special Revenue Fund ........................................... 113 Notes to the Budgetary Comparison Schedule ...................................................................................................... 115 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan .............................. 116 Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Plan........................................ 118 Schedule of Plan Contributions – Pension – Miscellaneous Plan .......................................................................... 120 Schedule of Plan Contributions – Pension – Safety Plan ....................................................................................... 122 Schedule of Changes in the Net OPEB Liability and Related Ratios ................................................................... 125 Schedule of Contributions – Other Postemployment Benefits Plan ...................................................................... 126 FINAL DRAFT 02.16.2023
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City of Lynwood
Year Ended June 30, 2022
Table of Contents (Continued)
PAGE
FINANCIAL SECTION (CONTINUED)
Supplementary Information:
Nonmajor Governmental Funds:
Description of Nonmajor Governmental Funds .............................................................................................. 130 Combining Balance Sheet ............................................................................................................................... 134 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 144 Schedules of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual:
HUD Home Program Special Revenue Fund ........................................................................................... 154 Prop C Special Revenue Fund .................................................................................................................. 155 RMC Grant Special Revenue Fund ................................................................................................ .......... 156 Retirement Special Revenue Fund ............................................................................................................ 157 Gas Tax Fund Special Revenue Fund ....................................................................................................... 158 SB 821 Special Revenue Fund .................................................................................................................. 159 Prop A Fund Special Revenue Fund ......................................................................................................... 160 Measure R Special Revenue Fund ............................................................................................................ 161 Air Quality Improvement Special Revenue Fund ..................................................................................... 162 State COPS Program Special Revenue Fund ............................................................................................ 163 Sheriff Drug Seizure Special Revenue Fund ............................................................................................ 164 Lighting Maintenance Special Revenue Fund .......................................................................................... 165 Safe Clean Water Special Revenue Fund ................................................................................................. 166 Impact Fees Special Revenue Fund .......................................................................................................... 167 Public Art Special Revenue Fund ............................................................................................................. 168 Litter Abatement Special Revenue Fund .................................................................................................. 169 Housing Community Development (HUD) Special Revenue Fund ......................................................... 170 Business Improvement District Special Revenue Fund ............................................................................ 171 Beverage Container Recycling Grant Special Revenue Fund .................................................................. 172 LA County Park Maintenance Grant Special Revenue Fund ................................................................... 173 Used Oil Recycling Grant Special Revenue Fund .................................................................................... 174 Dupont Lead Safety Grant Special Revenue Fund ................................................................................... 175 Justice Assistance Special Revenue Fund ................................................................................................. 176 Enterprise Zone Program Special Revenue Fund ..................................................................................... 177 Cannabis Cultivation Special Revenue Fund ............................................................................................ 178 Measure M Special Revenue Fund ........................................................................................................... 179 SB 1 Special Revenue Fund ...................................................................................................................... 180 ATP Grant Special Revenue Fund ............................................................................................................ 181 HSIP Special Revenue Fund ..................................................................................................................... 182 Transportation Special Revenue Fund ...................................................................................................... 183 Urban Greening Special Revenue Fund .................................................................................................... 184 Measure M (Bans) Capital Projects Fund ................................................................................................. 185 Capital Improvement Projects Capital Projects Fund ............................................................................... 186 2019 Lease Revenue Bonds Capital Projects Fund .................................................................................. 187 2002 HUD Section 108 Capital Projects Fund ......................................................................................... 188 Measure R (Bans) Capital Projects Fund .................................................................................................. 189 2012 Measure R Bond Proceeds Capital Projects Fund ........................................................................... 190 2017 Lease Revenue Bonds Debt Service Fund ....................................................................................... 191 City of Lynwood Debt Service Fund ........................................................................................................ 192 FINAL DRAFT 02.16.2023
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City of Lynwood
Year Ended June 30, 2022
Table of Contents (Continued)
PAGE
FINANCIAL SECTION (CONTINUED)
Supplementary Information (Continued):
Internal Service Funds:
Description of Internal Service Funds ............................................................................................................. 193 Combining Statement of Net Position ............................................................................................................. 195 Combining Statement of Revenues, Expenses and Changes in Net Position .................................................. 196 Combining Statement of Cash Flows .............................................................................................................. 197
STATISTICAL SECTION (UNAUDITED)
Description of Statistical Section Contents ............................................................................................................ 201 Net Position by Component ................................................................................................................................... 202 Changes in Net Position ......................................................................................................................................... 204 Fund Balances of Governmental Funds ................................................................................................................. 208 Changes in Fund Balances of Governmental Funds .............................................................................................. 210 Tax Revenues by Source of Governmental Funds ................................................................................................. 213 Assessed Value ...................................................................................................................................................... 214 Direct and Overlapping Property Tax Rates .......................................................................................................... 216 Principal Property Taxpayers ................................................................................................................................. 218 Property Tax Levies and Collections ..................................................................................................................... 219 Taxable Sales by Category..................................................................................................................................... 220 Direct and Overlapping Sales Tax Rates ............................................................................................................... 222 Principal Sales Tax Remitters ................................................................................................................................ 223 Bonded Debt Outstanding ...................................................................................................................................... 225 Ratios of Outstanding Debt by Type ............................................................................................ ......................... 226 Direct and Overlapping Governmental Activities Debt ......................................................................................... 229 Legal Debt Margin Information ............................................................................................................................. 230 Pledged Revenue Coverage ................................................................................................................................... 232 Demographic and Economic Statistics .................................................................................................................. 234 Principal Employers ............................................................................................................................................... 235 Full-Time Equivalent City Government Employees by Function/Program .......................................................... 236 Operating Indicators by Function/Program ...................................................................................... ..................... 237 Capital Asset Statistics by Function/Program ........................................................................................................ 238 FINAL DRAFT 02.16.2023
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i
February 21, 2023
Honorable Mayor and Members of
the City Council City of Lynwood,
California
We are pleased to present to you and the Lynwood residents the City's Annual Compr ehensive Financial Report (ACFR) for the fiscal year ended June 30, 2022. The ACFR presents the City's financial position and changes therein, for its various funding sources. The basic financial statements and supporting schedules have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (US GAAP), as established by the Governmental Accounting Standards Board (GASB).
Our Annual Comprehensive Financial Report is presented in three sections:
The Introductory Section includes management's transmittal letter and the organizational structure and profile of the City.
The Financial Section is prepared in accordance with the GASB 34 requirements and contains the Management's Discussion and Analysis (MD&A) , the Basic Financial Statements including notes, the Required Supplemental Information, and the Disclosure of Restricted Net Position. The Basic Financial Statements include the government-wide financial statements that present an overview of the City's entire financial operations, and fund financial statements that present the financial information of each of the City's major funds, as well as non-major governmental funds.
Also, included in this section is the Independent Auditor's Report.
The Statistical Section is prepared in accordance with GASB 44 requirements and reflects the Economic Condition of Reporting entities. It includes ten years of financial data, debt computations, and a variety of demographic, economic and social information that may be of interest to potential investors in the City's bonds and to other interested readers.
This report consists of management's representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to protect the government's assets from loss, theft, or misuse, to compile sufficient reliable information for the preparation of the City's financial statements in conformity with US GAAP, and to comply with other laws and regulations. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls was designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
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The City's financial statements have been audited by an independent auditing firm that is licensed as certified public accountants, The Pun Group, LLP. The objective of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatement. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion on the City's financial statements for the fiscal year ended June 30, 2022.
The Independent Auditor's Report is presented as the first component of the Financial Section of this report.
GASB Statement No. 34 (GASB 34) requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditor.
The Statistical Section has been updated to reflect GASB Statement 44 (GASB 44), Economic Condition of Reporting. The Statistical Section can be found following the Financial Section.
THE REPORTING ENTITY AND ITS SERVICES
The City has defined its reporting entity in accordance with the accounting principles generally accepted in the United States of America (US GAAP), which provide guidance for determining which governmental activities, organizations, and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the City and its component units.
The following elements are included in the City's ACFR:
x Government-Wide Financial Reporting
x Management's Discussion
and Analysis (MD&A)
x Fund Financial Statements and its Notes
x Expanded Budgetary Reporting
US GAAP requires that the component units be separated into either blended or discretely presented units for reporting purposes. The City does not have any discretely presented component units, but it presents blended units. These include the Lynwood Public Financing Authority (LPFA), the Lynwood Utility Authority (LUA), and the Lynwood Housing Authority (LHA).
The Lynwood Unified School District was not included due to its limited relationship with the City.
The City is also represented by a number of regional agencies that are excluded from the City's reporting entity.
PROFILE OF THE GOVERNMENT
The City of Lynwood voters approved the City's incorporation on July 1, 1921. The City is situated approximately 13 miles south of downtown Los Angeles at the intersection of the 710 and 105 freeways
in Los Angeles County. The City has grown from an agricultural area in the early 1900's to its present residential and growing industrial and commercial importance. The City covers 4.9 square miles and serves a residential population of over 66,723.
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The City Council is the governing body of the City and is comprised of five elected officials. All Council members are elected at large to serve four-year terms. One of the Council members is elected by the other four members to be the Mayor for the upcoming year. The City Council appoints a City Manager who carries out the City Council policies and provides administrative direction to the City.
The City provides a full range of services contemplated by statute, including those functions delegated to cities under state law. These services include public safety (which are contracted to Los Angeles County), public works, recreational and cultural activities, public improvements, planning, zoning, and general administrative services. Other services - such as sanitation, flood control and transportation - are provided by special districts with the City being a member.
The City's budget is a detailed operating plan that identifies estimated costs in relation to estimated revenues. The budget includes: (1) the programs, services, and activities to be carried out during the fiscal year; (2) the estimated revenue available to finance the operating plan; and (3) the estimated spending requirements for the operating plan. The budget represents a process wherein policy decisions by the City Council are adopted, implemented and controlled. The Notes to the Basic Financial Statements summarize the budgetary roles of various City officials and the timetable for their budgetary actions according to City policy.
City policy prohibits expending monies for which there is no legal appropriation. The City Manager is authorized to administer the budget and may transfer monies from one activity, program, or project to another within the same fund and department. Supplemental appropriations or transfer of appropriations that affect a fund or department level budget must be approved by the City Council.
The City also maintains an encumbrance accounting system to provide budgetary controls for governmental funds. Encumbrances, which would result in an overrun of an account balance, are suspended until additional funding is made available via budget change requests or are withdrawn
due to a lack of funding. Encumbrances outstanding at June 30th and carried forward are reported as reservations of the appropriate governmental fund's fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in-process at fiscal year-end are completed. They do not constitute expenditures or liabilities.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.
ECONOMIC CONDITION
The Covid-19 pandemic took a toll on cities across the United States. The pandemic is widely believed to have passed its peak but it still continues to negatively impact the economy. While the economic recovery is underway, events in Europe have resulted in volatility to the global economy, increasing the risk of an economic slowdown. Inflationary pressures and recessionary fears also present risks to the economy. Overall, the outlook continues to be for low to moderate growth, and staff continues to monitor the City’s exposure to these changing economic conditions. The Fiscal Year (FY) 2022-23 budget was developed in the context of the City gradually recovering from the impact of the pandemic, but facing new inflationary and recessionary challenges.
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The 2022-23 budget was very challenging as the City faced increased costs in public safety and insurances. Revenue growth has been slow, the City has to balance the need of maintaining City services and infrastructure with fiscal conservancy and reserve fund replenishment.
The FY 2022-23 City-wide budget contained revenues of $101.9M, transfer-in of $59.3M, expenditures of $139.0M, and transfers-out of $59.3M with all funds included.
The General Fund FY 2022-23 budget includes $41.4M in recommended expenditures and transfers to other funds. Personnel costs, which include salaries and benefits, represent $8.6M of the total expenditures. Operational costs, which include materials, services and supplies, account for $32.8M of the budget. Debt service and transfers to other funds costs total $2.6M.
Overall FY 2022-23 General Fund expenditures have increased by 5.1% or $2.0M over the FY 2021-22 budget. However, excluding the increase in contractual service costs related to Public Safety (Los Angeles County Sherriff and Fire), the actual change from FY 2021-22 was an increase of 2.6% or $532,879. Most of this increase can be attributed to increases in personnel costs, departmental restructuring and increases in risk management and workers’ compensation.
Despite these limitations to the General Fund, the FY 2022-23 budget marked the sixth year since the end of the Great Recession and the second year since the Covid-19 pandemic, that the City has been able to balance the budget without using its current balance on-hand (often called "reserve fund"). The FY 2022-23 budget did so without any decreases in service delivery or further attrition to the number of City Employees.
The General Fund reserves has risen above the City’s Reserve Policy requirement established by Resolution 2006-110. However, as the City faces rising costs and continued uncertainties of the global and local economies, continue revenue enhancement and cost controls are important in regards to prudent long-term financial planning.
Water and Sewer Proprietary Fund revenues have not kept up with the increase in costs, as the previously approved five-year rate increase plan that went into effect in FY 2016-17 has expired at the end of FY 2021-22. Water rates stayed unchanged even though costs have been increasing.
The total FY 2022-23 operating expense budget for the Water Fund is $12.9M, which is $0.8M over the $12.1M in operating revenue budget. City staff has started a new rate study and will bring it before Council within FY 2021-22 for approval to ensure the utility revenue is kept in line with its expenditures.
The Capital Improvement Project (“CIP”) total proposed budget is $51.6M that contains new and carryover projects.
CASH MANAGEMENT POLICIES AND PRACTICES
To maximize interest income and maintain liquidity, the City pools operating cash for its various funds and invests the monies in securities of various maturities. City and Agency funds are invested pursuant to the City's Investment Policy in compliance with Section 53601 of the California Government Code. The investment types authorized for investment by the City include the Local Agency Investment Fund (State Pool), U.S. Treasury Obligations, U.S. Government Agency Issues, Certificates of Deposit, Commercial Paper, as well as Mutual Funds and Money Market Funds comprised of eligible securities. The objectives of the Investment Policy are to preserve capital, provide adequate liquidity to meet cash disbursements of the City, and to achieve market- average rates of return. Investments are secured by collateral as required under law, with FINAL DRAFT 02.16.2023
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maturity dates staggered to ensure that cash is available as needed. The City Council receives regular reports from the City Treasurer on the performance of the City's pooled investment program.
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's Investment Policy.
The City manages its exposure to interest rate risk 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.
RISK MANAGEMENT
To finance its risks of general liability and worker's compensation, the City maintains its membership in the Independent Cities Risk Management Authority (ICRMA). The ICRMA is a Joint Powers Authority (JPA), which consists of neighboring southern California cities, whose purpose is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurances or reinsurances, and to arrange for group-purchased insurance for property, liability, flood, cyber, workers’ compensation and other coverage.
The City participates in programs for worker's compensation and general liability coverage administered by ICRMA. The Worker’s Comp limit is the California Statutory Limit for Worker’s Comp claims or maximum limit allowed by law, with the City's retention of $500,000 for each occurrence. General liability coverage is $35,000,000 with the City’s retention set at $250,000 for each occurrence. The City Attorney believes that the above designation is adequate to cover any losses. Costs related to litigation of claims are expensed as incurred.
In addition, the City participates in the ICRMA Property Insurance Program including earthquake and flood insurance. The “all risk”, including earthquake and flood, property coverage is $250,000,000 with $10,000 for each occurrence deductible. The property coverage limit is shared by 13 cities. Premiums for these policies are paid annually and not subject to retroactive adjustments.
During the past five fiscal (claim) years, none of the above programs of protection have had statements or judgments that exceeded pooled or insured coverage nor have there been any significant reductions in pooled or insured liability coverage from the prior year.
LONG-TERM FINANCIAL PLANNING
The City continues to explore additional sources of revenue to meet expectations for community services. The City utilizes a combination of expenditure spending limits, budget cuts, some increases in fees and the prudent use of reserves to balance each year's budget. The City must continue to be conservative and manage its fiscal affairs in a prudent manner.
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City of Lynwood Organizational Chart
CDBG Board
Public Safety/Traffic & Parking
Commission
Personnel Board
Planning Commission
Community
Development
City Attorney
City Manager
Public WorksHuman
Resources
Recreation &
Community Svcs.
Finance &
Administration
City Treasurer City ClerkCity Council
Lynwood Residents
Technology
Services
Fire Contract
Sheriff Contract
vii
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Finance & Administration Department
Organizational Chart FY 2021-22
Accounting
Technician
(2)
Billing & Collections
Supervisor
Director of
Finance & Administration
Payroll
Specialist
Senior
Accountant
Senior Management
Analyst
Accountant Senior Accounting
Technician
Accounting
Technician
Special Projects
Accounting/Auditing
Supervisor
(Part-Time/Limited Term)
Account
Clerk
viii
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City of Lynwood
Elected Officials as of June 30, 2022
Mayor Jorge Casanova
Mayor Pro-Tem Jose Luis Solache
Council Member Rita Soto
Council Member Oscar Flores
Council Member Marisela Santana
City Treasurer Gabriela Camacho
City Clerk Maria Quinonez
Administrative Staff as of June 30, 2022
City Manager Ernie Hernandez
Director of Finance & Administration Harry Wong
Sheriff Captain Edmundo F. Torres
Fire Chief Daryl Osby
Acting Director of Public Works Ernie Hernandez
Interim Director of Community Development John Yonai
Director of Technology Services Peter Han
Director of Human Resources Patrick Matson
Director of Recreation & Community Services Mark Flores
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INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and the Members of the City Council of the City of Lynwood
Lynwood, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lynwood, California (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial st atements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referre d to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, 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 accept ed in the United States of America (“GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (“Government Auditing Standards”). Our responsibilities under those standards are further described in the Auditors’ Responsib ilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
Change in Accounting Principle
As described in Note 1 to the financial statements, the City adopted new accounting guidance, GASB Statement No. 87, Leases during the year ended June 30, 2022. Our opinion is not modified with respect to this matter.
Prior Period Adjustments
As discussed in Note 17 to the basic financial statements, the City recorded prior period adjustments in the Statement of Net Position in the Governmental Activities to correct its capital assets in the amount of $4,241,879. Our opinion is not modified with respect to this matter.
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To the Honorable Mayor and the Members of the City Council of the City of Lynwood
Lynwood, California
2 Responsibilities of Management for the Financial Statements
Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es 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 wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ab ility to continue as a going concern for twelve months beyond the financial st atement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
exercise professional judgment and maintain professional skepticism throughout the audit.
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal cont rol-related matters that we identified during the audit.
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To the Honorable Mayor and the Members of the City Council of the City of Lynwood
Lynwood, California
3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of Changes in the Net Pension Liability and Related Ratios – CalPERS Miscellaneous Plan, the Schedule of City’s Proportionate share of the Net Pension Liability and Related Ratios – CalPERS Safety Plan, the Sc hedule of Plan Contributions – Pensions, the Schedule of Changes in the Net OPEB Liability and Related Ratios, and the Schedules of Contribution – Other Postemployment Benefits Plan on pages 5 to 14 and 111 to 127 be presente d to supplement the basic financial statements. Such information is the responsibility of mana gement and, although not a part of the basic financial statements, is required by the Governmental Accounting Standard s Board who considers it to be an essen tial part of financial reporting for placing the basic financial statements in an appropriate opera tional, economic, or historical context. We have applied certain limited procedures to the required supplementary in formation in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited pro cedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpos e of forming opinio ns on the financial statements that collectively comprise the City’s basic financial statements. The combining and in dividual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and w as derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonm ajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the othe r 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 auditors’ 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 basi c financial statements, our responsibility is to read the other information and consider whether a material inconsistenc y exists between the other information and the basic financial statements, or the other information otherwise appears to be materially mi sstated. 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.
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To the Honorable Mayor and the Members of the City Council of the City of Lynwood
Lynwood, California
4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our repor t dated February 13, 2023, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Santa Ana, California
February 13, 2023
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City of Lynwood
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2022
5 The Management Discussion and Analysis of the City of Lynwood’s financial performance provides readers of the City’s financial statements an overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2022.
We encourage readers to consider information noted below in conjunction with the City’s financial statements, the transmittal letter and notes to the basic financial statements.
FINANCIAL HIGHLIGHTS
The City’s net position equaled $184.5 million at June 30, 2022, increased $25.4 million from previous year. Net position is the amount by which total assets and deferred outflow of resources exceed total liabilities and deferred inflows of resources. The net position from government al activities at June 30, 2022 was $181.4 million, and from business-type activities was $3.1 million.
For FY 2021-22, City total revenues from all sources were $91.6 million and total e xpenses were $66.2 million.
Of the total revenues, program revenues were $57.6 m illion and general revenues we re $34.0 million. Program revenues are broken into: Charges for services at $24.5 m illion, operating grants and contributions at $30.6 million, and capital grants and contributions at $2.5 million. General reve nues comprised primarily of property taxes in the amount of $12.5 million, utility taxes in the amount of $5.8 million, sales and use tax in the amount of $14.2 million, franchise tax, business license tax and other taxes, and other revenues in the amount of $1.5 million.
The City’s governmental funds reported combined ending fund balance of $114.3 million at June 30, 2022. In FY 2021-22 Governmental revenue, other financing sources were $19.4 million more than expenditures and other financing uses. The increase of governmental funds balance was primarily due to $17.3 million in higher revenue over expenditures and $2.0 million proceed in General Fund from a one-time land sale.
ROAD MAP FOR THE FY 2021-2022 FINANCIAL AUDIT REPORT
The Management’s Discussion and Analysis section is intended to serve as the introduction to the City’s basic financial statements, which contain the basic financial data, as well as important supplemental information. Included in this report are the activities of the City of Lynwood and its component units, the Lynwood Public Financing Authority, the Lynwood Housing Authority and the Lynwood Utility Authority. The activities are presented using the integrated approach prescribed by the Government Accounting Standards Boar d (GASB) Statement No. 34. Also according to GASB Statement No. 34, certain interfund receivables, payables, a nd other interfund activities have been eliminated from the financial statements as they do not have a net impact.
The City’s basic financial statements contain a number of elements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund Financial Statements explain how these services were financed in the short-term as well as what remains for future spending. Fund financial 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. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
6 Reporting the City as a Whole: Statement of Net Position and Statement of Activities
One of the most important questions on the City’s finances is, “Is the City as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position an d the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and deferred outflows of resources and all liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements provide detail on the City’s net position and changes affecting it. The City’s net position –the total assets and deferred outflows of resources net of the total liabilities and deferred inflow of resources – is a way to measure the City’s overall financial health, or financial position. Over time, increases or decreases in the City’s net position may be a good indicator of whether its financial health is improving or deteriorating. However, the need exists to consider other non-financial factors, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.
The Statement of Net Position and the Statement of Activities present information about the following:
Governmental Activities - All of the City’s basic services are considered to be governmental activities, including general government, community developm ent, public safety, public works and parks and recreation. Property taxes, sales taxes, charges for services, franchise fees and other similar revenue sources pay for most of these activities.
Business-type Activities – All of the City’s functions that are intended to recover all or a significant portion of their costs through users fees and charges including water system, sanitary sewer activities, and transit activities.
Component Units - The City’s governmental activities include the blending of the Lynwood Public Financing Authority and Lynwood Housing Authority. Although lega lly separate, this “component unit” is important because of the significance of their operational and financial relationship with the City. The Lynwood Utility Authority is included in the business-type activities in the Statement of Net Position and Activities.
Reporting the City’s Most Significant Funds: Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds, and not the City as a whole.
Some funds are required to be established by State law and by bond covenants. However, the City Council establishes many other funds to help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other restricted sources. The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
7 Governmental Funds - Most of the City’s basic services are re ported in governmental funds, which focus on how money flows into and out of those funds, and the balance left at year-end that is available for spending. These funds are reported using an accounting method called the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides.
Governmental fund information helps to determine whether there are more or less financial resources that can be spent in the near future to finance the City’s programs. We describe th e relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in the reconciliation following the fund financial statements.
Proprietary Funds – The City maintains two different types of pr oprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations for its water system, sanitary sewer activities and transit activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to report activities that provide services for the City’s ot her programs and activities, such as the City’s Garage Fund, Information Technology Fund and Self Insurance fund. Individual fund data for the internal service funds is provided in the form of combining statements in this report.
Reporting the City’s Fiduciary Responsibilities: Fiduciary Fund
The City maintains a separate fund to report the activities of the Successor Agency to th e Dissolved Redevelopment Agency. The Successor Agency is presented as a Private-purpose Trust Fund in the financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements
The notes to the financial statements provi de additional information that is importa nt to obtain a full understanding of the data in the government-wide and fund financial statements. The notes are located immediately following the basic financial statements.
Other information
In addition to the basic financial statement and accomp anying notes, this report also presents certain required supplementary information. Required supplementary information may be found immediately following the notes to the financial statements. This section includes the budgetary comparison for the General Fund, the schedules of changes in net pension liabilities – miscellaneous plan, the schedule of proportionate share of the net pension liabilities – safety plan, the schedules of contribution, and the schedules of changes in net OPEB liabilities. The combing statements for other governmental funds, the individual fund schedule, and the internal service fund statements are presented immediately following the required supplementary information.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
8 THE CITY AS A WHOLE
Table 1 below provides a summary of the City’s net position, for the Governmental and Business-Type Activities.
Table 2 reflects change in the net position due to differences in actual revenues and expenses. The City reports its sewer, water, and transportation activities as business-type activities.
Table 1
Summary of Net Position
Fiscal Year 2021-22 (CURRENT) Fiscal Year 2020-21 (PRIOR) Go v ern m en t al
Activities
Business-type
Activities Total
G overnmental
Activities
(As Restated)
Business-type
Activities
(As Rest at ed) T ot al
Assets:
Current Assets & Other Assets 144,691,941$ 37,838,861$ 182,530,802$ 117,439,819$ 37,558,898$ 154,998,717$ Capital Assets 188,829,119 20,687,875 209,516,994 188,932,894 20,177,917 209,110,811 Total Assets 333,521,060 58,526,736 392,047,796 306,372,713 57,736,815 364,109,528 Deferred outflow of resources 7,573,201 1,594,937 9,168,138 10,416,721 912,963 11,329,684 Liabilities:
Other Liabilities 19,606,801 2,189,747 21,796,548 15,629,795 2,162,040 17,791,835 Long-Term Debt Outstanding 120,659,195 52,153,336 172,812,531 145,243,458 51,537,778 196,781,236 Total Liabilities 140,265,996 54,343,083 194,609,079 160,873,253 53,699,818 214,573,071 Deferred inflow of resources 19,403,098 2,670,014 22,073,112 1,489,279 259,386 1,748,665 Net Position:
Net investment in capital assets 141,219,613 (4,659,674) 136,559,939 150,854,057 (246,122) 150,607,935 Restricte
d 60,003,916 675,254 60,679,170 86,780,524 669,519 87,450,043 Unrestricte d (19,798,362) 7,092,996 (12,705,366) (83,207,679) 4,267,177 (78,940,502) Total Net Position 181,425,167$ 3,108,576$ 184,533,743$ 154,426,902$ 4,690,574$ 159,117,476$
Net position serves as an indicator of a government’s financial position over time. As of June 30, 2022, the City’s combined net position (governmental and business-type activities) totaled $184.5 million, up $25.4 million for the year.
Total assets were $392.0 million, deferred outflow of resources were $9.2 million. Total liabilities, including net pension and other post-employment benefits liabilities, were $194.6 million, deferred inflow of resources were $22.1 million as of June 30, 2022.
Net Position consists of three categories: net investment in capital assets, restricted, and unrestricted. The largest portion of the City’s net position, a pproximately $136.6 million at June 30, 2022, was the City ’s investment in capital asset including land, building, equipment, and infrastructure net of accumulated depreciation and related debt for acquiring these capital assets. Since the capital assets are used to provide services to c itizens; they are no available to fund the City’s day-to-day activities.
The restricted net position totaled $60.6 million at June 30, 2022. These are resources subject to external restrictions limits on how they can be used. The restricted net positi on includes primarily grants, retirement/pension, various nonmajor special revenue funds, debt service funds and capital projects funds
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
9 The remaining unrestricted net position was a deficit $12.7 m illion. The primary reasons for this negative unrestricted net position are the City’s pension liabilities and City’s OPEB liabilities.
Table 2
Change in Net Position
Fiscal Year 2021-22 (CURRENT) Fiscal Year 2020-21 (PRIOR) G overnmental
Activities
Business-T ype
Activities Total
G overnmental
Activities
Business-T ype
Activities Total
Revenues:
Program Revenues
Charges for S ervices 9,358,362$ 15,110,900$ 24,469,262$ 10,512,745$ 14,936,545$ 25,449,290$ Operating Grants and
and contributions 30,557,979 - 30,557,979 23,765,614 - 23,765,614 Capital g rants and
contributions 2,554,198 - 2,554,198 - - - S ubtotal 42,470,539 15,110,900 57,581,439 34,278,359 14,936,545 49,214,904 General Revenues
Property taxes 12,517,589 - 12,517,589 11,807,523 - 11,807,523 Utility user tax 5,776,593 - 5,776,593 5,225,838 - 5,225,838 S ales and use taxes 14,171,446 - 14,171,446 12,886,776 - 12,886,776 Franchise taxes 827,532 - 827,532 652,305 - 652,305 Business license taxes 808,295 - 808,295 764,016 - 764,016 Other taxes 178,425 - 178,425 410,021 - 410,021 Use of money and property (502,623) (132,905) (635,528) (11,930) 84,477 72,547 Miscellaneous 414,260 - 414,260 823,915 - 823,915 S ubtotal 34,191,517 (132,905) 34,058,612 32,558,464 84,477 32,642,941 T otal 76,662,056 14,977,995 91,640,051 66,836,823 15,021,022 81,857,845 Ex pe n s e s :
G eneral G overnment 9,891,951 - 9,891,951 7,076,551 - 7,076,551 Public S afety 15,921,610 - 15,921,610 19,811,083 - 19,811,083 Public Works 13,071,418 - 13,071,418 12,791,373 - 12,791,373 Community Development 5,991,316 - 5,991,316 3,342,443 - 3,342,443 Parks and Recreation 2,790,907 - 2,790,907 3,236,523 - 3,236,523 Interest and Fiscal Charges 2,998,678 - 2,998,678 3,184,825 - 3,184,825 Water and S ew er - 15,557,904 15,557,904 - 11,754,041 11,754,041 Trans it - - - - 1,307,702 1,307,702 To t a l 50,665,880 15,557,904 66,223,784 49,442,798 13,061,743 62,504,541 Excess of revenue over expenses
before transfers 25,996,176 (579,909) 25,416,267 17,394,025 1,959,279 19,353,304 Transfers 1,002,089 (1,002,089) - 1,291,583 (1,291,583) - Change in net position 26,998,265 (1,581,998) 25,416,267 18,685,608 667,696 19,353,304 Net position, beginning, as rest a 154,426,902 4,690,574 159,117,476 138,487,792 4,025,013 142,512,805 Prior Period Ad ju stment - - - (2,746,498) (2,135) (2,748,633) Net position, ending 181,425,167$ 3,108,576$ 184,533,743$ 154,426,902$ 4,690,574$ 159,117,476$
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
10 City’s overall net position at June 30, 2022, increased from $159.1 million (as r estated) to $184.5 million. There is a surplus between the actual revenues of $91.6 million and the actual expenses of $66.2 million. As reflected in the above table, the difference in revenue and expenses is a surplus of $25.4 million,. Governmental Activities resulted in a surplus $26.0 million before transfers; and Business-Type Activities had a deficit of $(0.6) million before transfers.
City’s FY2021-22 revenue increased $9.7 million to $91.6 million, of which 9.3 m illion was attributed to the increase in grant revenue, which was primarily due to the City’s r eceipt and spending of American Rescue Plan Act (ARPA) grant distribution. In addition, the revenue increase was because the general economy has been gradually recovering that lead to revenue growth in various ge neral revenue categories. For instance, these was $0.7 million increase in property tax due to the result of a 2% rate increase on all classes of property, $1.3 million increase in sales and use taxes due to an increase in sales quantities and inflation driven merchandise and service price increases. Despite the overall positive revenue growth, the largest revenue decrease came from “use of money and property”. Th ere was $0.6 million loss in FY2021-22, which was primarily attributed to the negative fair value adjustment and lower interest revenue.
Governmental Activities
Table 3 presents the cost of each of the City’s Governmental Activities: general government, public safety, public works, community development, parks and recreation, and interest on long-term debt, along with each program’s net cost (total cost less revenues generated by the activiti es.) The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions
Table 3
Governmental Activities
Net Cost of Services
Fiscal Year 2020-21 (PRIOR)
Expenses
Prog ram
Revenues Total Expenses
Prog ram
Revenues Total
Functions/Programs
G eneral G overnment 9,891,951$ 13,850,499$ 3,958,548$ 7,076,551$ 6,558,496$ (518,055)$ Public S afety 15,921,610 3,050,707 (12,870,903) 19,811,083 108,763 (19,702,320) Public Works 13,071,418 16,397,838 3,326,420 12,791,373 16,751,843 3,960,470 Community Development 5,991,316 8,971,250 2,979,934 3,342,443 10,825,107 7,482,664 Parks and Recreation 2,790,907 200,245 (2,590,662) 3,236,523 34,150 (3,202,373) Interest and fiscal charges 2,998,678 - (2,998,678) 3,184,825 - (3,184,825) 50,665,880$ 42,470,539$ (8,195,341)$ 49,442,798$ 34,278,359$ (15,164,439)$ Fiscal Year 2021-22 (CURRENT)
The cost of the City’s Governmental Activities in FY 2021-22 was $50.7 million, which increased $1.3 million from $49.4 million in FY 2020-21. The prog ram revenue of Governmental Activities increased $8.2 million from $34.3 million in FY 2020-21 to $42.5 million in FY 2021-22. As a result of the respective changes in the expenses and revenues, the net cost of Government Activities was $8.2 million in FY 2021-22, $7.0 million less than the net cost of $15.2 million recorded in FY 2020-21.
Overall, the cost of government in FY 2021-22 exceeded the program revenues generated to support it.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
11 BUSINESS-TYPE ACTIVITIES
Table 4 below reflects the cost of the City’s Business-Type Activities: water, sewer and transit, along with the programs’ net cost:
Table 4
Business-Type Activities
Net Cost of Services
In FY 2021-22, the transit service was reclassified from Business-Type activities into Governmental activities because the source of Transportation Fund was primarily from Prop A and Prop C, so it was more appropriate to classify the Transportation Fund as a Special Revenue Fund under Govern mental activities. The only Business-Type activity left was water and sewer. The cost of the water and sewer activities were $15.6 million. The program revenue generated by these activities were $15.1 million, which resulted a net loss of $(0.4) million. Such net loss was the combined result of rise in cost and the rise in water bill delinquencies due to the COVID-19 pandemic.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows and outflows during the fiscal year and balances of spendable resources at the end of the fiscal year. Such information is useful in assessing the City’s financing requirements to meet the current needs. Unassigned fund ba lance may serve as a useful measure of the City’s net resources available for appropriations.
At fiscal year-end, the City’s governmental funds reported combined fund balances of $114.3 million, which is a $19.4 million increase from the prior fiscal year. The increase was primarily due the $19.9 million increase in General Fund and $1.3 million increase in Housing Authority Special Re venue Fund, offset by $(1.1) million decrease in Landscape Maintenance Special Revenue Fund, an d $(0.7) million decrease in nonmajor governmental funds. The $19.9 million increase in General Fund was primarily attributable to $9.3 million revenue from the ARPA fund, inclusion of the Refuse Fund and Street Maintenance Fund into General Fund and a one-time $2.0 million land sale proceed. The fund balance categories of governmental fund displayed $88.0 million restricted fund balance, $4.8 million as committed fund balance, $27.5 million as assigned fund balance and $(6.0) million as unassigned fund balance. The unassigned amount was comprised of a $0.2 million from the General Fund, a de ficit of $4.5 million from Landscape Maintenance Special Revenue Fund, and a deficit of $1.8 million from Nonmajor governmental fund.
Fiscal Year 2021-22 (CURRENT) Fiscal Year 2020-21 (PRIOR) Expenses
Program
Revenues Total Expenses
Program
Revenues Total
Functions/Programs
Water and Sewer 15,557,904$ 15,110,900 $ (447,004) $ 11,754,041$ 14,936,511 $ 3,182,470 $ Transit - - - 1,307,702 34 (1,307,668) 15,557,904$ 15,110,900 $ (447,004) $ 13,061,743$ 14,936,545 $ 1,874,802 $ FINAL DRAFT 02.16.2023
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
12 There are four major funds which are General Fund, Housing Authority Special Revenue Fund, Landscape Maintenance Special Revenue Fund and American Rescue Plan Special Revenue Fund, and forty seven nonmajor governmental funds in the governmental funds.
General Fund is the main operating fund of the City, which finances the majority of the City’s operation including public safety, public works, community development, park and recreation and general administrative services. In FY 2021-22 General Fund revenues and other financing sources totaling $49.9 million, expenditures and transfer out totaling $30.0 million, the total fund balance was $32.7 million, an increase of $19.9 million from last year. The increases were due to the $3.4 million revenue recognizedfrom the ARPA fund, inclusion of the Refuse Fund and Street Maintenance Fund into the General Fund, increases of property tax, utility user tax, and sales and use taxes, and a one-time land sale proceed of $2.0 million.
Housing Authority Special Revenue Fund accounts for financial activities of low and moderate income housing fund in accordance with the applicable housing-related regulations. Housing fund received payments from Success Agency ROPS payments to satisfy obligation of pending construction of low-moderate income units. The fund balance in FY 2021-22 was $30.3 million, up $1.3 million from FY 2020-21. Housing fund received payments from Successor Agency ROPS payments to satisfy obligation of pending construction of low – moderate income units of the Atlantic Housing Project.
Landscape Maintenance Special Revenue Fund accounts for financial activities of landscape maintenance special revenue fund. The fund balance in FY 2021-22 was deficit $4.5 million, a decrease of $1.1 million from FY 2020-21.
American Rescue Plan Act (ARPA)Special Revenue Fund accounts for financial activities of the ARPA funds and expenditures. On March 10, 2021, ARPA was approved by th e federal government, the plan provides stimulus to the United State economy. City is allocated $24.4 million. The first allocation $12.2 million was received in August 2021 and the second will be received in September 2022. In October 2021, City adopted Economic & Community Enhancement Plan to outline the spending plan which majority in road, building, park, wa ter and sewer infrastructure.
The FY2021-22 revenue equaled expenditu re at $6.7 million, which resulted in zero ending fund balance as of June 30, 2022.
General Fund Budgetary Highlights
The adopted and final general fund budget for FY 2021-22 included estimated revenues and other financing sources of $39.3 million. The year-end actual revenues for the General Fund (including other financing sources) were $49.9 million with the variances occurring primarily in the areas of tax es and assessments, intergovern mental revenues and sale of land. Sales tax, property tax and utility user tax were 10%, 6% and 11% higher than prior year, respectively. The $3.4 million higher in actual versus budgeted in tergovernmental revenues was attributed to the ARPA revenue received and recognized in FY2021-22. The land sale of the Atlantic H ousing Project was budgeted in FY2020-21 but not budgeted for FY2021-22. However, the sale actually occurred in FY 2021-22. The adopted general fund expenditure (including transfer out) budget for this fiscal year was $39.3 million. Th e final general fund budget (i ncluding transfer out) was $40.0 million while the actual expenditures (including transfers out) totaled $30.0 million. The variance was mainly due to citywide salary saving from vacant positions and other cost controls.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
13 Capital Assets
At the end of Fiscal Year 2021-22, the City had $209.5 million invested in capital assets. Of this amount, $188.8 million is related to Governmental Activities and $20.7 million to Business-type Activities. These amounts represent a increase from the previous year (FY 2020-21) of $0.4 million, wh en the City’s overall capital assets were $209.1 million, including $188.9.7 million in Governmental Activities and $20.2 million in Business-type Activities.
Table 5
Capital Asset
Fiscal Year 2021-22 (CURRENT) Fiscal Year 2020-21 (PRIOR) Governmental
Activities
Business-type
Activities Total
Governmental
Activities
(As Restated)
Business-type
Activities
(As Restated) Total
Capital assets not being
depreciated 85,332,362$ 2,345,306$ 87,677,668$ 98,977,255$ 1,807,706$ 100,784,961$ Capital assets, net of
accumulated depreciation 103,175,776 18,337,974 121,513,750 89,534,287 18,370,211 107,904,498 Intangible assets, net of
accumulated amortization 320,981 4,595 325,576 421,358 6,440 427,798 188,829,119$ 20,687,875$ 209,516,994$ 188,932,900$ 20,184,357$ 209,117,257$
Additional information on the City’s Capital Assets can be found in the notes to the basic financial statements (Note 8).
Long-Term Debt
At fiscal year-end, the City’s governmental activities accounted for approximately $123.8 million in total long-term debt, which consist of revenue bonds, loan s, lease payable, claims payabl e, compensated absences, accrual for postemployment benefits and net pension liability. Another $53.2 million in long term debt was outstanding for the business-type activities.
Table 6
Outstanding Long-Term Debt
Balance
July 1, 2021 Deletions/ Balance Due Within
(As Restated) Additions Repayments June 30, 2022 One Year Governmental Activities:
Compensated absences 1,513,384 $ 673,410 $ (552,818) $ 1,633,976 $ 408,494 $ Net pension liability 39,485,564 - (15,358,674) 24,126,890 - Net OPEB liability 19,306,422 - (4,185,696) 15,120,726 - Claims payable 6,574,151 268,495 (1,398,646) 5,444,000 876,495 Lease payable 421,358 16,004 (26,681) 410,681 72,590 Loans, bonds and certificates 78,864,965 795,619 (2,610,295) 77,050,289 2,718,469 Total 146,165,844 $ 1,753,528 $ (24,132,810) $ 123,786,562 $ 4,076,048 $ Business-type Activities:
Compensated absences 386,319 $ 161,382 $ (169,280) $ 378,421 $ 94,605 $ Net pension liability 1,737,735 2,783,281 - 4,521,016 - Net OPEB liability 4,151,919 - (1,181,871) 2,970,048 - Lease payable 6,440 - (1,878) 4,562 1,671 Revenue bonds 46,323,385 - (952,820) 45,370,565 995,000 Total 52,605,798 $ 2,944,663 $ (2,305,849) $ 53,244,612 $ 1,091,276 $
Additional information on the City’s long-term debt can be found in the notes to the basic financial statements (Note 9).
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City of Lynwood
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2022
14 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City implemented a Two-Year Operating Budget star ting July 2019. The fiscal year 2021-23 biennial budget was approved in July 2021, and the fiscal year 2022-23 (second y ear of the fiscal year 2021-23 biennial budget) revised budget was adopted in June 2022. The fiscal year 2022-23 adopted revised general fund budget had an anticipated excess of revenues and transfers from other funds over expenditures and transfer to other funds of $789,000.
The City’s budget was prepared using Zero Based Budgeti ng (ZBB). ZBB is an approach to budgeting in which each budgeted year’s activities are evaluated in a self-contained fashio n, with little or no weight given to the precedents of past year. City Manager have developed fiscal policies such as minimize use “one -time money” for ongoing operations, and provide departments a consistent and strategic approach in preparing Two-Year Operating Budget. Every department and function budget were analyzed and expenses justified. Departments need to ensure that they are spending within their means. The overall general fund revenues have con tinued to improve due the a pproved Measure PS sales taxes along with strong Bradley Burns sales tax growth. Costs to provide services to the community have also continued to increase due to rising personnel and pension cost. City con tinues to explore additional sources of revenue to meet expectations for community service, public safety and needed infrastructure and capital improvement.
The adopted revised operating budget for FY 2022-23 reflects City gradually recovering from the impact of the Covid- 19 pandemic, but with the global and lo cal economy still under the clouds of various new uncertainties, such as the events in Europe, inflationary pressures and recessionary f ears. City made change in delivery of service models, decreasing staffing levels and consultant services. The City is continuing to look into ways to achieving fiscal sustainability by reducing expenses and address the City’s unfunded liabilities such as other post-employment benefits and retirement costs. Overall, the economic outlook continues to be for low to moderate growth and staff continues to monitor the City’s exposure to the changing economic conditions.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide Lynwood citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finan ces. If you have any questions a bout this report, or need additional fiscal information, contact the Department of Finance and Administration at 11330 Bullis Road, Lynwood, California, 90262, phone (310) 603-0220.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
17 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 104 of 582 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 71,519,511 $ 14,210,152 $ 85,729,663 $ Receivables:
Accounts, net 2,515,741 3,075,601 5,591,342 Interest 28,116 3,425 31,541 Intergovernmental 4,585,358 - 4,585,358 Lease receivable, due in one year 215,486 - 215,486 Prepaid items 44,618 69,894 114,512 Total current assets 78,908,830 17,359,072 96,267,902 Noncurrent assets:
Restricted cash and investments:
Held by City 7,331 - 7,331 Held by fiscal agent 47,893,444 20,479,789 68,373,233 Deposit in trust 300,000 - 300,000 Land held for resale 1,348,325 - 1,348,325 Lease receivable, due in more than one year 3,324,366 - 3,324,366 Notes and loans receivable 12,909,645 - 12,909,645 Capital assets:
Nondepreciable 85,332,362 2,345,306 87,677,668 Depreciable, net 103,175,776 18,337,974 121,513,750 Intangible assets, net 320,981 4,595 325,576 Total capital assets 188,829,119 20,687,875 209,516,994 Total noncurrent assets 254,612,230 41,167,664 295,779,894 Total assets 333,521,060 58,526,736 392,047,796
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on defeasance of debt 48,859 223,043 271,902 Deferred outflows of resources related to pensions 6,447,501 1,160,378 7,607,879 Deferred outflows of resources related to other postemployment benefits 1,076,841 211,516 1,288,357 Total deferred outflows of resources 7,573,201 1,594,937 9,168,138
(Continued)
Primary Government
City of Lynwood
Statement of Net Position
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 18 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 105 of 582 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 8,731,772 807,270 9,539,042 Accrued interest payable 1,154,874 132,442 1,287,316 Retention payable 522,102 - 522,102 Deposits 3,083,965 89,285 3,173,250 Unearned revenue 2,029,341 69,474 2,098,815 Long-term liabilities - due within one year 4,084,747 1,091,276 5,176,023 Total current liabilities 19,606,801 2,189,747 21,796,548 Noncurrent liabilities:
Advance from Successor Agency 957,380 - 957,380 Long-term liabilities - due in more than one year 80,454,199 44,662,272 125,116,471 Net pension liabilities 24,126,890 4,521,016 28,647,906 Net other postemployment benefits liability 15,120,726 2,970,048 18,090,774 Total noncurrent liabilities 120,659,195 52,153,336 172,812,531 Total liabilities 140,265,996 54,343,083 194,609,079
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 10,901,858 1,684,616 12,586,474 Deferred inflows of resources related to other postemployment benefits 5,016,733 985,398 6,002,131 Lease 3,484,507 - 3,484,507 Total deferred inflows of resources 19,403,098 2,670,014 22,073,112
NET POSITION
Net investment in capital assets 141,219,613 (4,659,674) 136,559,939 Restricted for:
Public safety 358,156 - 358,156 Community development 35,626,163 - 35,626,163 Public works projects 15,726,078 - 15,726,078 Capital projects 2,634,256 - 2,634,256 Retirement 1,853,599 -
1,853,599
Debt service 3,805,664 675,254 4,480,918 Unrestricted (deficit) (19,798,362) 7,092,996 (12,705,366) Total net position 181,425,167$ 3,108,576 $ 184,533,743 $ (Concluded)
Primary Government
City of Lynwood
Statement of Net Position (Continued)
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 19 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 106 of 582 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:
General government 9,891,951$ 346,343$ 13,504,156$ -$ Public safety 15,921,610 - 3,050,707 - Public works 13,071,418 662,094 13,181,546 2,554,198 Community development 5,991,316 8,149,680 821,570 - Parks and recreation 2,790,907 200,245 - - Interest and fiscal charges 2,998,678 - - - Total governmental activities 50,665,880 9,358,362 30,557,979 2,554,198 Business-type Activities:
Water and sewer 15,557,904 15,110,900 - - Total business-type activities 15,557,904 15,110,900 - - Total primary government 66,223,784$ 24,469,262 $ 30,557,979 $ 2,554,198 $ (Continued)
Program Revenues
City of Lynwood
Statement of Activities
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 20 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 107 of 582 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental Activities:
General government 3,958,548 $ - $ 3,958,548$ Public safety (12,870,903) - (12,870,903) Public works 3,326,420 - 3,326,420 Community development 2,979,934 - 2,979,934 Parks and recreation (2,590,662) - (2,590,662) Interest and fiscal charges (2,998,678) - (2,998,678) Total governmental activities (8,195,341) - (8,195,341) Business-type Activities:
Water and sewer - (447,004) (447,004) Total business-type activities - (447,004) (447,004) Total primary government (8,195,341) (447,004) (8,642,345) General revenues and transfers:
General revenues:
Taxes:
Property taxes 12,517,589 - 12,517,589 Utility users 5,776,593 - 5,776,593 Sales and use taxes 14,171,446 - 14,171,446 Franchise taxes 827,532 - 827,532 Business license taxes 808,295 - 808,295 Other taxes 178,425 - 178,425 Total taxes 34,279,880 - 34,279,880 Use of money and property (502,623) (132,905) (635,528) Miscellaneous 414,260 - 414,260 Total general revenue 34,191,517 (132,905) 34,058,612 Transfers 1,002,089 (1,002,089) -
Total general revenues and transfers 35,193,606 (1,134,994) 34,058,612 Change in net position 26,998,265 (1,581,998) 25,416,267 Net position - beginning of year, as restated (Note 17) 154,426,902 4,690,574 159,117,476 Net position - end of year 181,425,167$ 3,108,576 $ 184,533,743 $ (Concluded)
Net (Expense) Revenue and
Changes in Net Position
City of Lynwood
Statement of Activities (Continued)
For the Year Ended June 30, 2022
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FUND FINANCIAL STATEMENTS
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
25 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 112 of 582 Housing Authority Landscape American Rescue
General Special Revenue Maintenance Special Plan Special Fund Fund Revenue Fund Revenue Fund
ASSETS
Cash and investments 25,216,078$ 7,432,424$ -$ 2,051,255$ Receivables:
Accounts and taxes, net 2,364,920 - - - Interest 24,521 - - - Intergovernmental 2,829,063 - 33,046 - Notes and loans - 9,712,610 - - Lease receivable 3,539,852 - - - Due from other funds 7,897,596 - - - Prepaid items 16,927 - - - Restricted cash and investments:
Cash and investments 7,331 - - - Cash and investments with fiscal agents 1,000,014 15,275,887 - - Land held for resale - 850,631 - - Total assets 42,896,302$ 33,271,552$ 33,046$ 2,051,255$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 3,534,197$ 1,488,480$ 113,084$ 19,027$ Accrued liabilities 236,522 - 21,300 2,887 Retention payable - - 629 - Deposits 1,238,934 1,500,031 - - Due to other funds - - 4,402,570 - Advances from Successor Agency 957,380 - - - Unearned revenue - - - 2,029,341 Total Liabilities 5,967,033 2,988,511 4,537,583 2,051,255 Deferred inflows of resources:
Lease 3,484,507 - - - Unavailable revenue 699,176 - - - Total deferred inflows of resources 4,183,683 - - - Fund balances:
Nonspendable 16,927 - - - Restricted:
Public safety - - - - Public works 1,007,345 - - - Community development - 30,283,041 - - Retirement - - - - Capital projects - - - - Debt service - - - - Committed 4,042,373 - - - Assigned 27,470,431 - - - Unassigned (deficit) 208,510 - (4,504,537) - Total fund balances 32,745,586 30,283,041 (4,504,537) - Total liabilities, deferred inflows of
resources, and fund balances 42,896,302$ 33,271,552$ 33,046$ 2,051,255$ (Continued)
Major Funds
City of Lynwood
Balance Sheet
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 26 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 113 of 582 Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and investments 25,946,351$ 60,646,108$
Receivables:
Accounts and taxes, net 150,821 2,515,741 Interest 3,595 28,116
Intergovernmental 1,723,249 4,585,358
Notes and loans 3,197,035 12,909,645
Lease receivable - 3,539,852
Due from other funds 1,575,179 9,472,775
Prepaid items - 16,927
Restricted cash and investments:
Cash and investments - 7,331
Cash and investments with fiscal agents 31,617,543 47,893,444 Land held for resale 497,694 1,348,325
Total assets 64,711,467$ 142,963,622$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 3,129,357$ 8,284,145$
Accrued liabilities 81,235 341,944
Retention payable 521,473 522,102
Deposits 345,000 3,083,965
Due to other funds 3,790,653 8,193,223
Advances from Successor Agency - 957,380 Unearned revenue - 2,029,341
Total Liabilities 7,867,718 23,412,100
Deferred inflows of resources:
Lease - 3,484,507
Unavailable revenue 1,057,301 1,756,477
Total deferred inflows of resources 1,057,301 5,240,984 Fund balances:
Nonspendable - 16,927
Restricted:
Public safety 358,156 358,156
Public works 13,854,998
14,862,343
Community development 5,149,556 35,432,597
Retirement 1,853,599 1,853,599
Capital projects 31,726,565 31,726,565
Debt service 3,805,664 3,805,664
Committed 791,529 4,833,902
Assigned - 27,470,431
Unassigned (deficit) (1,753,619) (6,049,646)
Total fund balances 55,786,448 114,310,538
Total liabilities, deferred inflows of
resources, and fund balances 64,711,467$ 142,963,622$ (Concluded)
City of Lynwood
Balance Sheet (Continued)
Governmental Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 27 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 114 of 582 This page intentionally left blank.
28 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 115 of 582 Total Fund Balances - Total Governmental Funds 114,310,538$ Amounts reported for governmental activities in the statement of net position are different because:
Nondepreciable assets 85,332,362$
Depreciable and amortizable assets 103,496,757
Less: Amount reported in Internal Service Fund (419,037) 188,410,082 1,756,477
Compensated absences (1,633,976)$
Revenue bonds, certificates, loans, and lease payable (77,460,970) Loss on defeasance of debt (net of accumulated amortization) 48,859 (79,046,087) Net pension liability (24,126,890)$
Deferred outflows of resources 6,447,501
Deferred inflows of resources (10,901,858) (28,581,247) Net OPEB liability (15,120,726)$
Deferred outflows of resources 1,076,841
Deferred inflows of resources (5,016,733) (19,060,618) (1,154,874)
4,790,896
Net position of governmental activities 181,425,167$
Internal service funds are used by management to charge the costs of certain activities, such as self- insurance, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position.
Amount reported in government-wide statement of position:
Unavailable revenues are not available to pay for current period expenditures and therefore are deferred in the funds but recognized as revenue in the Statement of Activities.
Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds. Governmental funds report the effect of premiums, discounts and gains or losses on debt refundings when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Accrued interest payable due on long-term debt not reported in the governmental funds.
Net pension liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities. They are reported in the Statement of Net Position.
Net OPEB liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities. They are reported in the Statement of Net Position.
City of Lynwood
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of:
See accompanying Notes to the Basic Financial Statements. 29 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 116 of 582 Housing Authority Landscape American Rescue
General Special Revenue Maintenance Special Plan Special Fund Fund Revenue Fund Revenue Fund
REVENUES:
Taxes and assessments 36,016,992 $ - $ 1,074,219$ - $ Licenses and permits 1,054,973 - - - Fines, forfeitures and penalties 1,705,168 - - - Use of money and property (72,694) 5,026 7,299 - Intergovernmental 3,584,733 3,779,231 - 6,730,140 Charges for services 1,731,034 - - - Miscellaneous 525,675 - - - Total revenues 44,545,881 3,784,257 1,081,518 6,730,140 EXPENDITURES:
Current:
General government 2,961,369 - - 6,730,140 Public safety 13,886,349 - - - Public works 2,927,602 - 2,193,255 - Community development 4,146,754 244,524 - - Parks and recreation 3,056,331 - - - Capital outlay 16,005 - - - Debt service:
Principal retirement 12,250 1,575,000 - - Interest and fiscal charges 170 616,355 - - Total expenditures 27,006,830 2,435,879 2,193,255 6,730,140
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 17,539,051 1,348,378 (1,111,737) - OTHER FINANCING SOURCES (USES):
Issuance of debt 16,004 - - - Proceed from sale of assets 2,000,000 - - -
Transfers in 3,364,731 - - - Transfers out (2,975,728) - - - Total other financing sources (uses) 2,405,007 - - - NET CHANGES IN FUND BALANCES 19,944,058 1,348,378 (1,111,737) - FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 12,801,528 28,934,663 (3,392,800) - End of year 32,745,586$ 30,283,041$ (4,504,537)$ -$ Major Funds
City of Lynwood
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 30 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 117 of 582 Nonmajor Total
Governmental Governmental
Funds Funds
REVENUES:
Taxes and assessments 12,656,435$ 49,747,646 $
Licenses and permits 107,415 1,162,388
Fines, forfeitures and penalties - 1,705,168 Use of money and property (163,298) (223,667) Intergovernmental 6,862,223 20,956,327
Charges for services 439,812 2,170,846
Miscellaneous 341,180 866,855
Total revenues 20,243,767 76,385,563
EXPENDITURES:
Current:
General government 865,483 10,556,992
Public safety 874,057 14,760,406
Public works 7,127,715 12,248,572
Community development 1,759,960 6,151,238
Parks and recreation 395,761 3,452,092
Capital outlay 6,406,193 6,422,198
Debt service:
Principal retirement 1,063,954 2,651,204
Interest and fiscal charges 2,199,913 2,816,438 Total expenditures 20,693,036 59,059,140
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (449,269) 17,326,423
OTHER FINANCING SOURCES (USES):
Issuance of debt 795,619 811,623
Proceed from sale of assets - 2,000,000 Transfers in 10,252,942 13,617,673
Transfers out (11,344,388) (14,320,116)
Total other financing sources (uses) (295,827) 2,109,180 NET CHANGES IN FUND BALANCES (745,096) 19,435,603 FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 56,531,544 94,874,935 End of year 55,786,448$
114,310,538$
City of Lynwood
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 31 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 118 of 582 Net change in fund balances - total governmental funds: 19,435,603$ Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures, net of $5,733 reported in Internal Service Funds 6,601,757 $ Net effect on disposal of capital assets (2,951,885)
Depreciation and amortization expense, net of $143,336 reported in Internal Service Funds (3,616,044) 33,828 276,493
Issuance of debt and leases (811,623)$
Principal repayment of revenue bonds and lease payable 2,651,204 1,839,581 Interest on bonds (135,765)$
Pension expense, net of $4,161,783 contribution after measurement date 2,010,745 OPEB expense, net of $1,076,841 contribution after measurement date 293,040 Net change in compensated absences (120,592) 2,047,428 Amortization of debt premium 40,481 $
Amortization of debt discount (54,709)
Amortization of deferred amount on refunding (32,247) (46,475) 3,411,807
Change in net position of governmental activities 26,998,265$ Internal service funds are used by management to charge the costs of certain activities, such as vehicle, information technology, self-insurance, and facility maintenance to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities.
Revenues that are measurable but not available and are reported as unavailable revenue under the modified accrual basis of accounting in the governmental funds.
Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long -
term liabilities in the Government-Wide Statement of Net Position. Repayment of principal was an expenditure in the governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:
Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the Statement of Activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available:
City of Lynwood
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2022
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital expenditures exceeded depreciation in the current period:
See accompanying Notes to the Basic Financial Statements. 32 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 119 of 582
PROPRIETARY FUND FINANCIAL STATEMENTS
33 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 120 of 582 Business-Type Governmental
Activities Activities
Water and
Sewer Enterprise Internal
Funds Service Funds
ASSETS
Current Assets:
Cash and investments 14,210,152$ 10,873,403 $
Receivables:
Accounts, net 3,075,601 -
Interest 3,425 -
Prepaid items 69,894 27,691
Total current assets 17,359,072 10,901,094
Noncurrent assets:
Restricted cash and investments:
Held by fiscal agents 20,479,789 -
Deposit in trust - 300,000
Capital assets:
Capital assets, not being depreciated 2,345,306 -
Capital assets, being depreciated, net 18,337,974 419,037 Intangible asset, net 4,595 -
Total capital assets 20,687,875 419,037
Total noncurrent assets 41,167,664 719,037
Total assets 58,526,736 11,620,131
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on defeasance of debt 223,043 -
Deferred outflows of resources related to pensions 1,160,378 - Deferred outflows of resources related to OPEB 211,516 - Total deferred outflows of resources 1,594,937 - City of Lynwood
Statement of Net Position
Proprietary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 34 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 121 of 582 Business-Type Governmental
Activities Activities
Water and
Sewer Enterprise Internal
Funds Service Funds
LIABILITIES
Current liabilities:
Accounts payable 765,060 53,771
Accrued liabilities 42,210 51,912
Accrued interest payable 132,442 -
Deposits 89,285 -
Unearned revenues 69,474 -
Due to other funds - 1,279,552 Compensated absences, due within one year 94,605 -
Claims payable, due within one year - 876,495 Lease payable, due within one year 1,671 -
Revenue bonds payable, due within one year 995,000 -
Total current liabilities 2,189,747 2,261,730 Noncurrent liabilities:
Compensated absences, due in more than one year 283,816 - Claims payable, due in more than one year - 4,567,505 Lease payable, due in more than one year 2,891
Revenue bonds payable, due in more than one year 44,375,565 - Net pension liabilities 4,521,016 -
Net OPEB liabilities 2,970,048 -
Total noncurrent liabilities 52,153,336 4,567,505 Total liabilities 54,343,083 6,829,235
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 1,684,616 - Deferred inflows of resources related to OPEB 985,398 - Total deferred inflows of resources 2,670,014 -
NET POSITION
Net investment in capital assets (4,659,674) 419,037 Restricted for debt service 675,254 -
Unrestricted 7,092,996 4,371,859
Total net position 3,108,576$ 4,790,896 $
Proprietary Funds
June 30, 2022
City of Lynwood
Statement of Net Position (Continued)
See accompanying Notes to the Basic Financial Statements. 35 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 122 of 582 This page intentionally left blank.
36 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 123 of 582 Business-Type Governmental
Activities Activities
Water and
Sewer Enterprise Internal
Funds Service Funds
OPERATING REVENUES:
Sales and service charges 15,110,900$ 5,517,348 $ Total operating revenues 15,110,900 5,517,348
OPERATING EXPENSES:
Administration 3,875,781 -
Insurance - 2,342,854
Claims - 882,254
Water utility 7,486,636 -
Sewer utility 1,953,700 -
Garage - 441,629
Depreciation and amortization 580,617 143,336 Total operating expenses 13,896,734 3,810,073
OPERATING INCOME 1,214,166 1,707,275
NONOPERATING REVENUES (EXPENSES):
Investment loss (132,905) -
Interest expense (1,661,170) -
Total nonoperating revenues (expenses) (1,794,075) - Income (loss) before transfers (579,909) 1,707,275 TRANSFERS:
Transfers in - 1,704,532
Transfers out (1,002,089) -
Total transfers (1,002,089) 1,704,532
CHANGES IN NET POSITION (1,581,998) 3,411,807
NET POSITION:
Beginning of the year 4,690,574 1,379,089
End of the year 3,108,576$ 4,790,896 $
City of Lynwood
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 37 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 124 of 582 Business-Type Governmental
Activities Activities
Water and
Sewer Internal
Enterprise Fund Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 14,898,358$ 5,517,348 $ Payments to suppliers and employees (10,170,334) (479,873) Payments for insurance premium and claims - (4,489,171) Net cash provided by operating activities 4,728,024 548,304
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Received from other funds - 2,187,834 Paid to other funds (1,002,089) -
Net cash provided by (used in) noncapital
financing activities (1,002,089) 2,187,834
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets, net (1,084,135) (5,733) Principal paid on revenue bonds and lease payable (966,878) - Interest paid on revenue bonds and lease payable (1,619,235) - Net cash (used in) capital and related financing activities (3,670,248) (5,733) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment loss (132,626) -
Net cash (used in) investing activities (132,626) - Net increase (decrease) in cash and cash equivalents (76,939) 2,730,405 CASH AND CASH EQUIVALENTS:
Beginning of year 34,766,880 8,442,998
End of year 34,689,941$ 11,173,403 $
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION:
Cash and investments 14,210,152$ 10,873,403 $
Cash and investments held by fiscal agent or in the trust 20,479,789 300,000 Tota
l 34,689,941$ 11,173,403 $
City of Lynwood
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 38 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 125 of 582 Business-Type Governmental
Activities Activities
Water and
Sewer Internal
Enterprise Fund Service Funds
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income 1,214,166$ 1,707,275 $
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization 580,617 143,336 Change in assets and liabilities:
(Increase) decrease in accounts receivable (287,287) (27,691) (Increase) decrease in prepaid items (69,894) - (Increase) decrease in deferred outflows of
resources related to pension (737,793) -
(Increase) decrease in deferred outflows of
resources related to OPEB 23,572 -
Increase (decrease) in accounts payable (69,291) (116,260) Increase (decrease) in accrued expenses (4,951) (28,205) Increase (decrease) in customer deposits 5,271 - Increase (decrease) in unearned revenues 69,474 - Increase (decrease) in compensated absences (7,898) - Increase (decrease) in claims payable - (1,130,151) Increase (decrease) in net pension liabilities 2,783,281 - Increase (decrease) in net OPEB liabilities (1,181,871) - Increase (decrease) in deferred inflows of
resources related to pension 1,684,616 -
Increase (decrease) in deferred inflows of
resources related to OPEB 726,012 -
Total adjustments 3,513,858 (1,158,971)
Net cash provided by operating activities 4,728,024$ 548,304 $ Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
City of Lynwood
See accompanying Notes to the Basic Financial Statements. 39 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 126 of 582 This page intentionally left blank.
40 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 127 of 582
FIDUCIARY FUND FINANCIAL STATEMENTS
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42 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 129 of 582 Successor
Agency
Private-purpose
Trust Fund
ASSETS:
Cash and investments 8,271,837$
Cash and investments with fiscal agents 22,747,854
Advance to the City of Lynwood 957,380
Land held for development 388,996
Property held for resale, net 423,500
Total assets 32,789,567
LIABILITIES:
Accounts payable 273,161
Interest payable 529,129
Deposits 25,387
Long-term liabilities:
Due within one year 1,670,000
Due in more than one year 21,589,082
Total liabilities 24,086,759
NET POSITION:
Restricted for:
Held in trust 8,702,808
Total net position 8,702,808$
City of Lynwood
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
See accompanying Notes to the Basic Financial Statements. 43 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 130 of 582 Successor
Agency
Private-purpose
Trust Fund
ADDITIONS:
Redevelopment property tax trust fund 6,107,451$
Use of money and property 14,833
Miscellaneous 26,593
Total additions 6,148,877
DEDUCTIONS:
Community development 3,635,305
Interest and fiscal charges 1,586,987
Total deductions 5,222,292
Change in net position 926,585
NET POSITION :
Beginning of year 7,776,223
End of year 8,702,808$
City of Lynwood
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
See accompanying Notes to the Basic Financial Statements. 44 FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 131 of 582
45 NOTES TO THE BASIC FINANCIAL STATEMENTS
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City of Lynwood
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
47 Note 1 – Summary of Significant Accounting Policies ..................................................................................... 49
A. Description of the Reporting Entity ......................................................................................................... 49 B. Basis of Accounting and Measurement Focus ......................................................................................... 50 C. Cash, Cash Equivalents, and Investments ................................................................................................ 53 D. Interfund Receivable and Payable ............................................................................................................ 53 E. Accounts and Tax Receivables ................................................................................................................ 53 F. Lease Receivable ...................................................................................................................................... 54 G. Capital Assets ........................................................................................................................................... 54 H. Deferred Outflows of Resources and Deferred Inflows of Resources ..................................................... 55 I. Interest Payable ........................................................................................................................................ 55 J. Unearned Revenue ................................................................................................................................... 55 K. Compensated Absences ............................................................................................................................ 55 L. Claims and Judgement ............................................................................................................................. 55 M. Lease Liabilities ....................................................................................................................................... 55 N. Long-Term Debt ...................................................................................................................................... 56 O. Pensions ...................................................................................................................... ............................. 56 P. Other Postemployment Benefits (“OPEB”) Plan ..................................................................................... 57 Q. Net Position .............................................................................................................................................. 57 R. Fund Balances .......................................................................................................................................... 58 S. Spending Policy ....................................................................................................................................... 58 T. Property Taxes ......................................................................................................................................... 59 U. Use of Estimates............................................................................................................... ........................ 60 V. Implementation of New GASB Pronouncement ...................................................................................... 60
Note 2 – Stewardship, Compliance, and Accountability .................................................................................. 60
A. Encumbrances .......................................................................................................................................... 60 B. Continuing Appropriations ..................................................................................................... ................. 60 C. Deficit Fund Balances/Net Position ......................................................................................................... 61 D. Excess of Expenditures Over Appropriations .......................................................................................... 62
Note 3 – Cash and Investments .......................................................................................................................... 63
A. Demand Deposits ..................................................................................................................................... 63 B. Investments Authorized by the California Government Code and the City’s Investment Policy ............ 64 C. Investments Authorized by Debt Agreements ......................................................................................... 64 D. Fair Value Measurement .......................................................................................................................... 65 E. Risk Disclosures ....................................................................................................................................... 65 F. Investment in State Investment Pool ........................................................................................................ 66 G. Investment in Money Market Mutual Funds ............................................................................................ 67
Note 4 – Receivables ............................................................................................................................................ 67
Note 5 – Notes and Loans Receivables .............................................................................................................. 68
A. CDBG and HOME Loans ........................................................................................................................ 68 B. Housing Authority.............................................................................................................. ...................... 68
Note 6 – Lease Receivables ................................................................................................................................. 70
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City Council Regular Meeting - Page 134 of 582
City of Lynwood
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2022
48 Note 7 – Interfund Activities .............................................................................................................................. 70
A. Due To/From Other Funds ....................................................................................................................... 70 B. Advances from Fiduciary Fund ................................................................................................................ 71 C. Transfers ..................................................................................................................... ............................. 71
Note 8 – Capital Assets ....................................................................................................................................... 73
A. Governmental Activities .......................................................................................................................... 73 B. Business-Type Activities ......................................................................................................................... 74
Note 9 – Long-Term Liabilities .......................................................................................................................... 75
A. Governmental Activities .......................................................................................................................... 75 B. Business-Type Activities ......................................................................................................................... 82 C. Fiduciary Activities .................................................................................................................................. 86
Note 10 – Risk Management ............................................................................................................................... 89
A. Liability Program ..................................................................................................................................... 90 B. Workers’ Compensation Program ............................................................................................................ 90 C. All Risk Property Program ....................................................................................................................... 91 D. Other Programs ........................................................................................................................................ 91 E. Liability for Self-Insured Claims ............................................................................................................. 91
Note 11 – Defined Benefit Pension Plans ........................................................................................................... 92
A. General Information about the Pension Plans .......................................................................................... 93 B. Net Pension Liability ......................................................................................................... ...................... 95 C. Changes in the Net Pension Liability ....................................................................................................... 97 D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions ....... 99 E. Payable to the CalPERS Plan ................................................................................................................ 100 F. Pension Tax Override ............................................................................................................................. 100
Note 12 – Other Postemployment Benefits (“OPEB”) ................................................................................... 101
A. General Information about the OPEB Plan ............................................................................................ 101 B. Net OPEB Liability ................................................................................................................................ 102 C. Changes in Net OPEB Liability ............................................................................................................. 103 D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB ............................................................................................................. 104
Note 13 – Net Investment in Capital Asset ...................................................................................................... 105
Note 14 – Fund Balance Classifications ........................................................................................ .................. 106
Note 15 – Deferred Compensation Plan .......................................................................................................... 106
Note 16 – Commitments and Contingencies ................................................................................................... 107
Note 17 – Prior Period Adjustments ................................................................................................................ 107
Note 18 – Subsequent Events ................................................................................................... ........................ 108
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City of Lynwood
Notes to the Basic Financial Statements
For the Year Ended June 30, 2022
49 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Lynwood, California (the “City”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental units. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below.
A. Description of the Reporting Entity
The City was incorporated in 1921, under the general la ws of the State of California. The City operates under a Council-Manager form of government and provides basi c local governmental services including public safety (police and fire), maintenance and construction of pub lic improvements, community development, parks and recreation, transportation, water, sewer and general administration.
As required by U.S. GAAP, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is either able to impose its will on that organization, or there is a pot ential for that organization to provide specific financial benefits to or impose specific financ ial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent upon the City (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.
Blended Component Units
The City reports the following three blended component units:
Lynwood Public Financing Authority
The Lynwood Public Financing Authority was formed in 1993, by a joint powers agreement between the City of Lynwood and the former Lynwood Redevelopment Agency (the “Agency”). It was created to acquire and finance the acquisition of public capital improvement s necessary or convenient for the operation of the City or Agency.
Lynwood Utility Authority
The Lynwood Utility Authority was formed in 2003, by a joint powers agreement between the City of Lynwood and the former Lynwood Redevelopment Agency (the “Agency”). It was created to acquire, operate and maintain the utility sy stem. The Lynwood Utility Authority is included in the business-type activities in the City’s Statements of Net Position and Activities.
Lynwood Housing Authority
The Lynwood Housing Authority was formed under the California Health and Safety Code. The objective of the Housing Authority is to aid low-income families in obtaining decent, safe and sanitary housing through low/moderate-income housing program s. The Housing Authority is included within the scope of the reporting entity of the City because its governing body is composed in its entirety of City Council members of the City. The Housing Authority is blended in as a special revenue fund based on the criteria discussed above.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
50 Note 1 – Summary of Significant Accounting Policies (Continued)
A. Description of the Reporting Entity (Continued)
These component units are considered to be blended component units because the City Council serves as the governing board for the component units and the City has operational responsibility over these entities. As a result, these organizations are considered component units of the City and are included within the financial statements of the City using the blended method. All component units ha ve a June 30 year-end. There are no separated issued reports for these blended component units. The City has no discretely presented component units.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of fu nds, each of which is cons idered a separate accounting entity. The operations of each fund are accounted for by pr oviding a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.
Government-Wide Financial Statements
The City’s Government-Wide Financial Statements incl ude a Statement of Net Position and a Statement of Activities. These statements present summaries of govern mental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.
These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and lia bilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accomp anying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been e liminated except those represen ting balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
51 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental f unds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences between fund balance as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Ba lances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recognized as soon as they are both “measura ble” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enoug h thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences.
The City reports the following major governmental funds:
General Fund is the City's primary operating fund. It acc ounts for all financial resources of the general government, except those required to be accounted for in other funds.
Housing Authority Special Revenue Fund accounts for revenue received from low-and-moderate income housing asset fund. These funds are used for low- and moderate-income housing activities in accordance with the applicable housing-related regulations.
Landscape Maintenance Special Revenue Fund accounts for special assessment received from the County of Los Angeles for which an assessment has been charge d against property owners' front footage. These funds are used to provide services such as tree maintenance, park maintenance, and capital improvements. These improvements include improvements to the City’s infrastructure, housing, and redevelopment projects.
American Rescue Plan Special Revenue Fund accounts for revenues and activities for American Rescue Plan Act funding which was provided to fund additional relief for individuals and businesses affected by the coronavirus pandemic.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
52 Note 1 – Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major Proprietary Fund.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City’s internal service funds include three individual funds which provide services directly to other City funds. These areas of service include vehicle & equipment maintenance/replacement, information technology, self-insurance and facilities maintenance.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those re venues that are generated fro m the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
The City reports the following major enterprise fund:
Water and Sewer Enterprise Fund accounts for revenue received from u ser fees for water and sewer usage.
The Water and Sewer Enterprise Fund also pays for water billing, water utility, sewer services, and improvements to the water system.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements in clude a Statement of Fiduciary Net Position and a Statement of Change in Fiduciary Net Position. The City’s fiduciary fund represents a private purpose trust fund. The private purpose trust fund is accounted for on the full accrual bass of accounting where the assets associat ed with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.
The City reports the following type of fiduciary fund:
Successor Agency Private-Purpose Trust Fund was created by the City Council in 2012. It was established pursuant to Assembly Bill x1 26. Its purpose is to e xpeditiously wind down the affairs of the dissolved Lynwood Redevelopment Agency. The governing body of the Successor Agency is comprised of the members of the Oversight Board selected by the County of Los Angeles, City of Lynwood, school and special districts.
The Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
53 Note 1 – Summary of Significant Accounting Policies (Continued)
C. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. Investments are stated at fair value.
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:
The three levels of the fair value measurement hierarchy are described below:
Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.
Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets and liabilities through corroboration with market data at the measurement date.
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets and liabilities at the measurement date.
All cash and investments of proprietary funds are held in the City’s investment pool. These cash pools have the general characteristics of a demand deposit account, theref ore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes.
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
Interest Rate Risk
Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
In addition, other disclosures are speci fied including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
D. Interfund Receivable and Payable
Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans) or advances to/from other fund (i.e., non-current interfund loans). Any r esidual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial st atements as “interfund balances”.
E. Accounts and Tax Receivables
All accounts and tax receivables are shown net of any allowance for uncollectible accounts, if applicable, and estimated refunds due.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
54 Note 1 – Summary of Significant Accounting Policies (Continued)
F. Lease Receivable
The City is a lessor for leases of water tower, land, and billboard sites and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $5,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.
Key estimates and judgments include how the City determines (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 incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.
The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circum stances that would require a remeasureme nt of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that ar e expected to significantly affect the amount of the lease receivable.
G. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.
Donated capital assets are valued at acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5,000 (including infrastructure assets). Depreciation and amortization is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Assets Y ears
Buildings 30 to 50
Im provem ents other than buildings 30 to 50
Infrastructure 30 to 50
Util i ty system s 75
V ehicles 7 to 15
Other equipm ent and furnishings 5 to 15
For all infrastructure systems, the City elected to use the Basic Approach for infrastructure reporting. The City defines infrastructure as the basic physi cal assets that allow the City to function. The assets include the streets, parks and recreation, lands and improvement system, st orm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system is divided into subsystems. For example, the street syst em can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (s igns, signals and pavement markings), landscaping and land.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
55 Note 1 – Summary of Significant Accounting Policies (Continued)
G. Capital Assets (Continued)
These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
H. Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred Outflows of Resources represent a consumption of net assets that applies to future periods
Deferred Inflows of Resources represent an acquisition of net assets that applies to future periods.
I. Interest Payable
In the government-wide financial statem ents, 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 proprietary fund and private-purpose trust fund types recognize the interest payable when the liability is incurred.
J. Unearned Revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services.
K. Compensated Absences
Permanent City employees earn vacation and sick leave hours per pay period with rates depending on their length of employment. Upon separation from employment the employees are paid for any unused vacation leave accrual balance. The City allows employees to accrue up to a maximum one and a half times their regular annual entitlement. There is no maximum on the number of sick leave hours that can be accrued. The amount of compensated absences at June 30 is accrued when in curred in the government-wide financial statements.
Compensated absences are primarily liquidated by the General Fund.
L. Claims and Judgement
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability has been incurred prior to fiscal year end and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund which accounts for the City's self-insurance activities.
M. Lease Liabilities
The City recognizes lease liabilities with an initial, individu al value of $5,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability.
At the commencement of a lease, the C ity initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently , the lease liability is reduced by the principal portion of lease payments made.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
56 Note 1 – Summary of Significant Accounting Policies (Continued)
M. Lease Liabilities (Continued)
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) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the State generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circum stances that would require a remeasureme nt of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
N. Long-Term Debt
In the government-wide financial stat ements, long-term debt and other l ong-term obligations are reported as liabilities in the appropriate activities. Bond premiums a nd discounts 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 expensed when incurred.
In the fund financial statements, with the exception of advances from other funds, the governmental fund financial statements do not present long-term liabilities. 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.
O. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for pension reporting:
V aluation Date: June 30, 2020
Measurem ent Date: June 30, 2021
Measurem ent Period: July 1, 2020 to June 30, 2021
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
57 Note 1 – Summary of Significant Accounting Policies (Continued)
O. Pensions (Continued)
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
General Fund and Retirement Special Revenue Fund are typically used to liquidate pension liabilities to governmental funds.
P. Other Postemployment Benefits (“OPEB”) Plan
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.
The following timeframes are used for OPEB reporting:
V aluation Date: June 30, 2021
Measurem ent Date: June 30, 2021
Measurem ent Period: July 1, 2020 to June 30, 2021
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
General Fund is typically used to liquidate OPEB liabilities to governmental funds.
Q. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization and related deferred charges on refunding capital debt, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those items, net of unspent debt proceeds.
Restricted – This component of net position consists of r estricted assets reduced by liabilities and deferred inflows of resources related to those assets.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
58 Note 1 – Summary of Significant Accounting Policies (Continued)
Q. Net Position ( Continued)
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of res ources that are not included in the de termination of net investment in capital assets or the restricted component of net position.
R. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:
Nonspendable fund balance includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The City’s nonspendable fund balance represents inventory, prepaid items, land held for r esale, and loans receivable unless the proceeds from the collection of those loans receivables or from sale of the properties is restricted, committed, or assigned.
Restricted fund balance includes resources that are subject to exte rnally enforceable legal restrictions. It includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council, as the City’s highest level of decision-making authority, may commit, through a resolution, fund balance for specific purposes pursuant to constraints imposed by such formal actions taken. Committed amounts cannot be used for any other purpose unless the City Council removes or changes the specific use through the same type of formal action taken to establish the commitment.
Assigned fund balance consists of funds that are set aside for sp ecific purposes by the City’s highest level of decision making authority or a body or official that h as been given the authority to assign funds. The City Council delegates the authority to assign fund balance to the City Manager for purposes of reporting in the annual financial report.
Unassigned fund balance is the residual classification for the City ’s fund balance and includes all spendable amounts not contained in the other classifications. This category also provides the resources necessary to meet unexpected expenditures and revenue shortfalls. The Ge neral 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 General Fund, 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.
S. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
59 Note 1 – Summary of Significant Accounting Policies (Continued)
S. Spending Policy (Continued)
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order, except for instances wherein an ordinance specifies the fund balance:
Committed
Assigned
Unassigned
T. Property Taxes
Property tax revenue is recognized in the fiscal year for wh ich the taxes have been levied providing they become available. Available means due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.
Property taxes in the State of California are administered fo r all local agencies at the County level, and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:
Property Valuations are established by the Assessor of the County of Los Angeles for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for propert y improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.
Tax Levies are limited to 1% of full value which results in a tax rate of $1.00 per $100 assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation. The City's share of the $1.00 varies depending on the tax rate area and it ranges from $0.0125 to $0.0730.
Tax Levy Dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the foll owing year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
Tax Levy Apportionments – Because of the nature of the City-wide maximum levy, it is not possible to identify general purpose tax rates for specific entities. Under stat e legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the county auditor-controller based primarily on the ratio that each agency represented of the total City-wide levy for the three years prior to fiscal year 1979.
Property Tax Administration Fees – The State of California FY 1990-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Property taxes are recorded as net of administrative fees withheld during the fiscal year.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
60 Note 1 – Summary of Significant Accounting Policies (Continued)
U. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported am ounts and disclosures. Accordingly, actual results could differ from those estimates.
V. Implementation of New GASB Pronouncement
In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were cl assified as operating leases and recognized as inflows of resources or outflows of resources based on the payment pr ovisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to rec ognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistenc y of information about governments’ leasing activities. The effective date of GASB Statement No. 87 (as amended by GASB Statement No. 95) is for fiscal years beginning after June 15, 2021.
Implementation of this Statement resulted in restatem ent of beginning balance of lease receivable and related deferred inflows of resources (Note 6), lease assets (Note 8), and lease payable (Note 9) at July 1, 2021.
Note 2 – Stewardship, Compliance, and Accountability
A. Encumbrances
Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control pur poses in the General, Special Revenue, and similar governmental funds. Encumbrances outstanding at fiscal year-end are reported as committed or assigned fund balance. They represent the estimated amount of the expe nditure ultimately to result if unperformed contracts in- process at fiscal year-end are completed. They do not constitute expenditures or estimated liabilities.
The outstanding amounts of encumbrances as of June 30, 2022 are as follows:
General Fund 139,606$
Capital Improvement Project Fund 5,051,872
Water and Sewer Enterprise Fund 2,220
B. Continuing Appropriations
The unexpended and unencumbered appr opriations that are available and recommended for continuation are approved by the City Council for carryover to the fo llowing fiscal year. These commitments are reported as committed or assigned fund balance.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
61 Note 2 – Stewardship, Compliance, and Accountability (Continued)
C. Deficit Fund Balances/Net Position
The following funds contained a deficit fund balance/net position as of June 30, 2022:
Funds Amount
Major Governmental Funds:
Landscape Maintenance (4,504,537)$
Nonmajor Governmental Funds:
Special Revenue Funds:
RMC Grant (507,978)
Housing Community Development (HUD) (90,533)
Used Oil Recycling Grant (3,994)
Justice Assistance (30,997)
Urban Greening (1,120,117)
Proprietary Fund:
Internal Service Fund:
Vehicle & Equipment Maintenance/ Replacement (713,385)
Landscape Maintenance Special Revenue Fund deficit was a result of the landscape and lighting assessment rates not being increased since 1998-99 and 1992-93, respectively.
Special Revenue Fund deficits will be eliminated when revenue becomes available. RMC Grant, Housing Community Development (HUD), Used Oil Recycling Gr ant, and Urban Greening Special Revenue Funds all expect to receive
funds from granting agencies. As for the Justice Assistance Fund, the city expects to receive a reimbursement from JAG grant.
For deficits in Internal Service Funds, the City will implement cost recovery through charging asset usage and allocating liabilities. Ultimately, in the long run, Vehicle & Equipment Maintenance/Replacement Fund will recover asset costs.
In the Government-Wide Financial Statements, the City had a deficit unrestricted net position at June 30, 2022, for its governmental activities of $(19,798,362) of which, $( 24,126,890) and $(15,120,726) were attributed to net pension liabilities and net other postemployment benefits liability, respectively.
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 148 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
62 Note 2 – Stewardship, Compliance and Accountability (Continued)
D. Excess of Expenditures Over Appropriations
The following funds contained excess of expenditures over final appropriations for the year ended June 30, 2022:
Final
Funds Appropriations Expenditures Excess
Major Governmental Funds:
General Fund:
General Government:
Finance & Administration 513,792$ 859,178 $ (345,386) $ Capital outlay - 16,005 (16,005) Debt service:
Principal retirement - 12,250 (12,250) Interest and fiscal charges - 170 (170) American Rescue Plan Act:
General Government 930,000 6,730,140 (5,800,140) Nonmajor Governmental Funds:
Special Revenue Funds:
Retirement
General government 826,694 865,483 (38,789) Public works 1,383,775 1,448,700 (64,925) Community development 709,464 742,750 (33,286) Parks and recreation 340,304 356,272 (15,968) Measure R
Debt service:
Interest and fiscal charges 251,482 257,626 (6,144) Air Quality Improvement
Capital Outlay - 58,497 (58,497) State COPS
Public safety 100,000 140,704 (40,704) Beverage Recycle Grant
Debt service:
Principal retirement - 14,431 (14,431) Interest and fiscal charges - 1,255 (1,255) Measure M
Debt service:
Interest and fiscal charges 549,100 553,042 (3,942) Capital Projects Fund:
Measure M Bond
Debt service:
Interest and fiscal charges - 8 (8) 2019 Lease Revenue Bonds
Debt service:
Interest and fiscal charges - 6 (6) Measure R (Bans)
Debt service:
Interest and fiscal charges - 184 (184) Debt Service Fund:
City of Lynwood Debt Service Fund
Debt service:
Interest and fiscal charges 1,372,956 1,383,292 (10,336) FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 149 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
63 Note 3 – Cash and Investments
Cash and investments at June 30, 2022, are classified in the accompanying financial statements as follows:
G overnm ent- Fiduciary
Wide Statement Fund Statement
of Net Position of Net Position Total
Unrestricted assets:
Cash and investments 85,729,663$ 8,271,837$ 94,001,500$ R estricted assets:
Cash 7,331 - 7,331 Cash and investments with fiscal agents 68,373,233 22,747,854 91,121,087 Deposit in trust 300,000 - 300,000 Total cash and inv estments 154,410,227$ 31,019,691$ 185,429,918$
Cash and investments at June 30, 2022 consisted of the following:
Petty cash 1,800$
Deposits with financial institution 68,560,565
Deposit in trust 300,000
Investments 116,567,553
Total cash and inv estments 185,429,918$
A. Demand Deposits
The carrying amount of the City’s demand deposits were $68,560,565 at J une 30, 2022. Bank balances before reconciling items were $69,280,637 at that date, the tota l amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City depos its by pledging first trust deed mort gage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corpora tion (“FDIC”). The City, however, has not waived the collateralization requirements.
Deposits in trust consist of Workers Compensation plan deposit of $150,000 and General Liability plan deposit of $150,000, totaling $300,000 as of June 30, 2022.
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 150 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
64 Note 3 – Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City’s Investment Policy
The following table identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restri ctive). The table also identifies certain provisions of the California Government Code (or the City's investment polic y, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Maxi mum Maxi mum
M aximum Percentage Inv estment in
Authorized Investment Type Maturity of Portfolio One Issuer Local Agency Investment Fund (State Pool) N/A None $65 million U.S. Treasury Obligations 5 years None None
U.S. government sponsored enterprise securities 5 years None None Non-negotiable Time Deposits 1 year 25% None
FDIC Insured Certificates of Deposit 5 years None $250,000 Negotiable Certificates of Deposit 5 years 30% 30%
Commercial Paper 270 days 25% 5%
Money Market Funds (m ust be com prised of
eligible securities permitted under this Policy) N/A 20% 10% Medium Term Corporate Notes 5 years 30% 2% **
Supra National Debt Obligations 5 years 30% 5%
** Commercial paper holdings may be included when calculation 2% limitation.
C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are gove rned by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Agency's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maxi mum Maxi mum
M aximum Percentage Inv estment in
Authorized Investment Type Maturity of Portfolio One Issuer Local agency investment fund (State Pool) N/A None $40 million U.S. Treasury obligations N/A None None
U.S. governm ent sponsored enterprise securities N/A None None Certificates of deposit N/A None None
Com m ercial paper N/A None None
Mutual funds (m ust be com prised of eligible
securities permitted under this policy N/A None None
Money m arket funds (m ust be com prised of
eligible securities permitted under this
policy) N/A None None
Medium Term Corporate Notes N/A None None
Supra National Debt Obligations N/A None None
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City Council Regular Meeting - Page 151 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
65 Note 3 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2022, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2022
:
Investment Type
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2) Uncategorized Total
Local agency investment pool - $ - $ 9,422,376$ 9,422,376 $ U.S. Treasury obligation 6,104,645 (1) - - 6,104,645 U.S. government sponsored enterprise
securities - 3,661,476 (1) - 3,661,476 Negotiable certificates of deposit - 3,727,165 (2) - 3,727,165 Money market funds - - 556,043 556,043 Corporate notes - 1,974,760 (2) - 1,974,760 Held by fiscal agent:
Money market funds - - 91,121,088 91,121,088 Total investments 6,104,645$ 9,363,401$ 101,099,507$ 116,567,553$ (1) based on insitutional bond quotes
(2) based on matrix pricing
Measurement Input
E. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term invest ments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is as follows:
12 Months 13 to 24 25 to 36 37 to 48 49 to 60
Investment Type Total or Less Months Months Months Months Local agency investment pool 9,422,376$ 9,422,376$ -$ -$ -$ -$ U.S. Treasury obligation 6,104,645 492,245 1,441,955 1,427,405 2,285,735 457,305 U.S. government sponsored enterprise
securities 3,661,476 499,765 - 1,175,358 920,695 1,065,658 Negotiable certificates of deposit 3,727,165 1,589,469 984,095 240,706 457,336 455,559 Money market funds 556,043 556,043 - Corporate notes 1,974,760 - 1,001,430 485,598 - 487,732 Held by fiscal agent:
Money market funds 91,121,088 91,121,088 - - - - Total investments 116,567,553$ 103,680,986$ 3,427,480$ 3,329,067$ 3,663,766$ 2,466,254$
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City Council Regular Meeting - Page 152 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
66 Note 3 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
The City has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an i nvestment 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 by Standard and Po or’s 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:
Investm ent Type Total AAA AA A Not Required Not Rated
Local agency investment pool 9,422,376$ -$ -$ -$ -$ 9,422,376$ U.S. Treasury obligation 6,104,645 - - - 6,104,645 - U.S. governm ent sponsored enterprise
securities 3,661,476 3,661,476 - - - - Negotiable certificates of deposit 3,727,165 - - - - 3,727,165 Money market funds 556,043 - - - - 556,043 Corporate notes 1,974,760 - 980,128 994,632 - - Held by fiscal agent:
Money market funds 91,121,088 91,121,088 - - - - Total inv estments 116,567,553$ 94,782,564 $ 980,128 $ 994,632 $ 6,104,645$ 13,705,584 $
Disclosures Relating Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer. As of June 30, 2022, there were no investment in any one issuer (other than U.S. Treasury securities, mutual funds, and local agency investment fund) that represents 5% or more of total City investments.
Disclosures Relating 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 ri sk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.
F. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency In vestment Fund (“LAIF”) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The value of the City’s investment in this pool is reported in the acc ompanying 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), which approximates fair value.
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City Council Regular Meeting - Page 153 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
67 Note 3 – Cash and Investments (Continued)
F. Investment in State Investment Pool (Continued)
The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The City investments in LAIF at June 30, 2022 included a portion of pool funds invested in Structured Notes and Asset-Backed Securities.
Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2022, the City had $9,422,376 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities.
G. Investment in Money Market Mutual Funds
At June 30, 2022, investments in money market mutual funds are reported at amortized cost, which approximates fair value. The funds investment objectives seek preser vation of capital, daily liquidity and maximum current income. The portfolios consist of liquid, high-quality debt securities issued by the U.S. Government. The funds offer same day liquidity and as of June 30, 2022 the City had $91,121,088 invested in Money Market Mutual Funds.
Note 4 – Receivables
Summary of receivables at June 30, 2022 is as follows:
Allowance for
Uncollectible
Receivable Accounts Net Am ount
Gove r nme ntal Ac ti vi ti e s :
Accounts (including tax es) 2,805,054$ (289,313) $ 2,515,741 $ Interest 28,116 - 28,116 Intergovernm ental 4,585,358 - 4,585,358 Total 7,418,528 $ (289,313) $ 7,129,215 $ Business-type Activities:
Accounts 3,295,421 $ (219,820) $ 3,075,601 $ Interest 3,425 - 3,425
Total 3,298,846 $ (219,820) $ 3,079,026 $
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City Council Regular Meeting - Page 154 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
68 Note 5 – Notes and Loans Receivables
A. CDBG and HOME Loans
The City has received funding from th e U.S. Department of Housing and Ur ban Development for the purpose of assisting (through zero or low interest deferred loans) residents and commercial enterprises to rehabilitate their homes and businesses, and assisting first-time homebuyer. Some of the loans have maturity dates while others are due upon sale of the underlying property.
Also, parcels of land have been sold to commercial real estate developers in exchange for various loans. Such loans have terms ranging from 3 to 30 years, with interest rates ranging from 0% to 10%. In several loan agreements, a portion of the entire principal amount will be forgiven upon the completion of the project. In this circumstance, an allowance account is established to reduce the balance of loans receivable. As of June 30, 2022, the gross amount of the loans and notes receivable amounted to $7,033,776. The amount presented , which is net of allowance for the future amount expected to be forgiven in the amount of $3,836,741, was $3,197,035.
B. Housing Authority
Pursuant to AB X1 26, the Housing Authority was created to manage the housing function of the former Lynwood Redevelopment Agency (the “LRA”). As a result, certain loans made by the former LRA are now reported under the Housing Authority. Parcels of land were sold to commercial real estate developers by the former LRA in exchange for various loans. Such loans have terms ranging from 3 to 10 years, with interest rates ranging from 3% to 10%. In several loan agreements, a portion of the entire principal amount will be forgiven upon the completion of the project.
In this case, an allowance account is established to reduce the balance of loans receivable. The City also extended rehabilitation loans to property owners for the rehabilitation and improvements of commercial buildings.
As of June 30, 2022, the long-term receivables balance was $9,712,610. Details of notes and loans receivables are as follows:
Habitat for Humanity - 3076 Redwood $ 30,126 Habitat for Humanity - 5525 Clark 2,905 Developer loan - 11300 Atlantic Avenue 412,727 Habitat for Humanity - 10-unit low income project 453,197 Habitat for Humanity - 3254 Palm Avenue 243,100
Atlantic housing development 8,570,555
Notes and loans receivables $ 9,712,610
Habitat for Humanity - 3076 Redwood – The former LRA entered into a loan agreement with Habitat for Humanity of Greater Los Angeles (“Habitat for Humanity”) to purchase foreclosed homes with Federal HOME funds and 20% housing set aside funds; rehabilitate said home with 20% housing set aside funds; and deed restrict and resell to a low income household. 3076 Redwood was purchased for $315,000. $61,906 of 20% Housing Set Aside funds were budgeted and utilized for rehabilitation of the unit. The outstanding balance at June 30, 2022 was $30,126.
Habitat for Humanity - 5525 Clark – The former LRA entered into a loan agreement with Habitat for Humanity to purchase foreclosed homes with Federal HOME funds and 20% housing set aside funds; rehabilitate said home with 20% housing set aside funds; and deed restrict and resell to a low income household. 5525 Clark was purchased for $299,500. $48,970 of 20% Housing Set Aside funds were budgeted and utilized for rehabilitation of the unit. The outstanding balance at June 30, 2022 was $2,905.
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City Council Regular Meeting - Page 155 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
69 Note 5 – Notes and Loans Receivables (Continued)
B. Housing Authority (Continued)
Developer loan - 11300 Atlantic Avenue – In February 2009, the former LRA extended a non-interest bearing note in the amount of $710,000 to a developer for financial assistance on an affordable housing project located at 11300 Atlantic Avenue (the Property). Th e total amount represents the cash c ontribution from the Agency for the insurance payment of $454,000 and the rehabilitation loan of $256,000 for the project. Upon each anniversary of the date of the issuance of a Certificate of Completion and provided all material covenants set forth in the agreement have been performed during the previous year, a credit of 1/55 of the Insurance Payment principal amount shall be applied to the note, and the outstanding principal am ount of the note shall be reduced by such amount. The outstanding balance at June 30, 2022 was $412,727.
Habitat for Humanity - 10-unit low income project – In July 2009, the former LRA extended a noninterest-bearing set aside note in the amount of $454,100 to Habitat for Humanity to assist in the cost of developing 10 low income ownership homes. Upon the subdivision of the site into individual lots for development, the set aside note was divided by the number of units constructed and each unit is responsible for the repayment of an equal share of the set aside note amount. The outstanding balance at June 30, 2022 was $453,197.
Habitat for Humanity - 3254 Palm Avenue – In April 2009, the former LRA extended a noninterest-bearing set- aside note in the amount of $243,100 to Habitat for Humanity to assist in the cost of redeveloping a low income triplex at 3254 Palm Avenue for sale to low income hou seholds. Pursuant to the loan agreement, the LRA contributed the land and $243,100 to build the affordable homes. Upon the subdivision of the site into individual lots for development, the set aside note was divided by the number of units constructed and each unit is be responsible for the repayment of an equal share of the set-aside note amount. The outstanding balance at June 30, 2022 was $243,100.
Atlantic Housing development - On December 22, 2015 , City and Developer ente red into a Disposition and Development Agreement (the “Original DDA”). The Original DDA provided, among other things, for City’s sale of the Site to Developer and Developer’s purchase of the Site from City, Developer’s construction of approximately eighty-one (81) affordable senior apartment units on th e Site, incidental parking, landscaping, and related improvements (herein, the “Senior Project”), Develope r’s submittal to the California Tax Credit Allocation Committee “TCAC”) of an application for so-called “9%” low income tax credits to help finance the acquisition of the Site and development of the Senior Project, and long-term rental restrictions limiting occupancy of the units of the Senior Project to eligible lower income households , all as set forth and subject to the terms and conditions in the Original DDA. On April 23, 2013, the Los Angel es County Superior Court entered its final judgment in a lawsuit entitled Rogel et al. v. Redevelopment Agency of the City of Lynwood et al. (the “Rogel I Judgment”).
The Rogel I Judgment imposes an obligation on the Su ccessor Agency of the former Lynwood Redevelopment Agency (the “Successor Agency”) and Lynwood Hous ing Authority as the housing successor to the former Lynwood Redevelopment Agency (the “Housing Authority”) to construct sixty-six (66) non-age-restricted low- to moderate-income housing units (the “Rogel I Units”). On February 14, 2017, the California Department of Finance (“DOF”) and the Oversight Board to the former and dissolved Lynwood Redevelopment Agency (“Oversight Board”) agreed to approve, and the Auditor-Controller of the County of Los Angeles agreed not to object to, certain allocations of property tax to the Successor Agency from proceeds of the Real Property Tax Trust Fund (“RPTTF”) to be deposited into a special housing fund within the Low Moderate Housing Asset Fund of the Housing Authority (“Housing Fund”), as needed by the Housing Authority to provide funding required to construct the Rogel I Units, subject to the limited availability of RPTTF funds. The outstanding balance at June 30, 2022 was $8,570,555.
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City Council Regular Meeting - Page 156 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
70 Note 6 – Lease Receivables
Lease receivables consist of agreements with others for the right–to–use of the underlying assets for land owned by the City at various locations. The remaining terms of the agreements range from 1 to 30 years. The incremental borrowing rates used ranged from 0.185% to 1.7510%. For the year e nded June 30, 2022, the City recognized $263,281 in lease revenue and $123,921 in interest revenue. The outstanding receivables are in the amounts of $3,539,852
The future required payments for these leases, including interest, are as follows:
Y ear Ending June 30, Principal Interest Total
2023 215,486$ 143,304$ 358,790$
2024 227,214 133,620 360,834
2025 231,922 126,089 358,011
2026 169,899 118,337 288,236
2027 171,785 110,411 282,196
2028-2032 993,656 418,574 1,412,230 2033-2037 1,089,548 153,535 1,243,083 2038-2042 117,885 33,614 151,499 2043-2047 158,490 21,510 180,000 2048-2052 163,967 7,033 171,000 Total 3,539,852$ 1,266,027$ 4,805,879$
Gove rnme ntal Acti vi ti e s
Note 7 – Interfund Activities
A. Due To/From Other Funds
The following is a summary of interfund balances as of June 30, 2022:
Landscape Nonmajor Internal
Maintenance G overnmental Service
Due From Other Funds Special Revenue Fund Funds Funds Total Governmental Funds:
General Fund 4,402,570 $ 3,495,026 $ - $ 7,897,596$ Nonm ajor G overnm ental
Funds - 295,627 1,279,552 1,575,179 4,402,570$ 3,790,653 $ 1,279,552 $ 9,472,775 $ Due to Other Funds
G overnmental Funds
Current interfund receivables and payables were due to (1) short-term borrowings to eliminate negative cash, and (2) reimbursement of certain administrative costs which arise in the normal course of business and are expected to be repaid shortly after the end of the year.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
71 Note 7 – Interfund Activities (Continued)
B. Advances from Fiduciary Fund
Advances from the Successor Agency to the City (General Fund) at June 30, 2022 were as follows:
Advance to Other Fund
Fiduciary Fund:
Successor Agency Private
Purpose Trust Fund
Adv ance from Other Funds
957,380$
G eneral Fund
The advance is the loan from the former Lynwood Redevelopment Agency “LRA” to th e City in the amount of $957,380 at June 30, 2022.
C. Transfers
The following is a summary of Interfund transfers for the year ended June 30, 2022:
Nonmajor Internal
G eneral G overnmental Serivce
Transfers Out Fund Fund Funds Total
Governmental Funds:
Ge n e ra l Fu n d - $ 2,425,728$ 550,000 $ 2,975,728 $ Nonmajor Governmental Funds 2,364,731 7,825,125 1,154,532 11,344,388 Proprietary Funds:
Water and Sewer Enterprise Fund 1,000,000 2,089 - 1,002,089 3,364,731$ 10,252,942 $ 1,704,532 $ 15,322,205 $ Transfers In
Governmental Funds
With Council approval, resources may be transferred from one City fund to another.
Transfers of $3,364,731 to the General fund consists, $5,000 from Public Art Special Revenue fund, $3,750 from Prop A Special Revenue Fund, $3,190 from Impact F ees Special revenue fund, $37,858 from LA County Park Maintenance Special Revenue Fund, $112,907 from Dupont Lead Safety Grant Special Revenue Fund, $122,052 from Prop 84 Park Grant Special Revenue Fund, $21,667 from Prop 1B Special Revenue Fund, $1,642,046 from TEA Grant Special Revenue Fund, $119,812 from ATP Grant Special Revenue Fund, $170,049 Section 108 Loan Special Revenue, $125,287 2002 HUD Section 108 Loan Ca pital Projects Fund, $1,114 Other Grants Special Revenue Fund, $1,000,000 from Water and Sewer Enterprise fund to cover city wide expenditures.
A transfer of $2,019,565 from General fund to City Debt Service Fund for debt service payments. Transfers of $289,284 to Litter Abatement Special Revenue fund for street sweeping services. Transfers of $116,879 to Sheriff Drug Seizure to close the fund.
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City Council Regular Meeting - Page 158 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
72 Note 7 – Interfund Activities (Continued)
C. Transfers (Continued)
A transfer of $7,825,122 between Nonmajor Governmental Funds consists of:
$1,479,518 from Prop A Special Revenue Fund to Transportation Special Revenue Fund to cover transportation programs.
A transfer of $6,345,604 to the Capital Improvements Capital Projects Fund, consists of $459,277 from SB 1 Special Revenue Fund, $12,303 from Prop A Special Revenue Fund, $465,601 from Prop C Special Revenue Fund, $498,374 from Measure R Special Revenue Fund, $76,292 from 2012 Measure R Bond Proceeds Capital Projects Fund, $1,767,195 from Measure M Bond Cap ital Projects Fund, $1,120,117 from Urban Greening Special Revenue Fund, $6,660 from ATP Grant Special Revenue fund, $372,278 from Measure R (Bans) Capital Projects Fund, $365,918 from 2017 Lease Revenue Bonds Capital Project Fund, $503,803 from RMC Grant Special Revenue Fund, $8,603 from HSIP Grant Special Revenue Fund, $665,149 from 2019 LRB Capital Project Fund, and $24,034 from Safe Clean Water Special Revenue Fund to fund capital improvements projects.
A transfer of $2,092 from Water and Sewer Enterprise Fund to nonmajor funds to fund capital improvements projects.
Transfers of $1,704,532 to the Internal Service fund include 1) $550,000 from General fund to fund reserved contingency and 2) $1,154,532 from Retirement fund to c over the cost for retiree's health benefits liability premium.
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City Council Regular Meeting - Page 159 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
73 Note 8 – Capital Assets
A. Governmental Activities
Summary of changes in capital asset for the governmental activity for the year ended June 30, 2022 was as follows:
Balance
July 1, 2021 Balance
(As Restated) Additions Deletions Reclassification June 30, 2022 Capital assets, not being depreciated:
Land 56,111,297 $ - $ (2,951,885)$ - $ 53,159,412$ Rights of way 22,904,315 - - - 22,904,315 Trees 287,627 - - - 287,627 Construction in progress 19,674,016 3,852,855 - (14,545,863) 8,981,008 Total capital assets, not being depreciated 98,977,255 3,852,855 (2,951,885) (14,545,863) 85,332,362 Capital assets, being depreciated:
Buildings and improvements 27,262,261 332,002 - 1,478,245 29,072,508 Machinery and equipment 7,524,981 223,812 (112,000) - 7,636,793 Infrastructure
Roadways, curbs and gutters 82,374,572 2,182,817 - 13,067,618 97,625,007 Sidewalks and medians 9,522,497 - - - 9,522,497 Other street appurtenances 9,396,951 - - - 9,396,951 Total capital asse ts, be ing depreciated 136,081,262 2,738,631 (112,000) 14,545,863 153,253,756 Less accumulated depreciation for:
Buildings and improvements (8,028,335) (616,016) - - (8,644,351) Machinery and equipment (6,324,715) (241,497) 112,000 - (6,454,212) Infrastructure
Roadways, curbs and gutters (24,531,789) (2,338,098) - - (26,869,887) Sidewalks and medians (4,212,910) (291,760) - - (4,504,670) Other street appurtenances (3,449,232) (155,628) - - (3,604,860) Total accumulated depreciation (46,546,981) (3,642,999) 112,000 - (50,077,980) Total capital asse ts, be ing depreciated, net 89,534,281 (904,368) - 14,545,863 103,175,776 Lease assets, being amortized:
Intangible asset - right to use 421,358 16,004 - - 437,362 Accumulated amortization - (116,381) - - (116,381) Total lease assets, being amortized, net 421,358 (100,377) - - 320,981 Governmental activities capital assets, net 188,932,894$ 2,848,110$ (2,951,885)$ -$ 188,829,119$
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 160 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
74 Note 8 – Capital Assets (Continued)
A. Governmental Activities (Continued)
Depreciation and amortization expenses were charged to functions/programs of the City's governmental activities as follows:
General government 692,970$
Public Safety 3,357
Public works 2,785,485
Community development 132,260
Parks and recreation 1,972
Internal Service Fund 143,336
Total 3,759,380$
B. Business-Type Activities
Summary of changes in capital asset for the business-t ype activity (Water and Sewer) for the year ended June 30, 2022 was as follows:
Balance
July 1, 2021 Balance
(As Restated) Additions Deletions Reclassification June 30, 2022 Capital assets, not being depreciated:
Land 36,341 $ - $ - $ - $ 36,341$ Construction in progress 1,771,365 537,600 - - 2,308,965 Total capital assets, not being depreciated 1,807,706 537,600 - - 2,345,306 Capital asse ts, be ing de preciate d:
Buildings and improvements 44,709 45,846 - - 90,555 M achinery and equipment 1,029,546 10,185 - - 1,039,731 Infrastructure 27,226,094 488,008 - - 27,714,102 Total capital assets, being depreciated 28,300,349 544,039 - - 28,844,388 Less accumulated depreciation for:
Buildings and improvements (23,602) (3,370) - - (26,972) M achinery and equipment (587,649) (71,479) - - (659,128) Infrastructure (9,318,887) (501,427) - - (9,820,314) Total accumulated depreciation (9,930,138) (576,276) - - (10,506,414) Total capital assets, being depreciated, net 18,370,211 (32,237) - - 18,337,974 Lease assets, being amortized:
Intang ible asset - rig ht to use 6,440 - - - 6,440 Accumulated amortization - (1,845) - - (1,845) Total lease assets, being amortized, net 6,440 (1,845) - - 4,595 Bus
iness-type activities capital assets, net 20,184,357$ 503,518$ -$ -$ 20,687,875$
Depreciation and amortization expenses were charged to water and sewer function of the City's business-type activities in the amount of $578,121.
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 161 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
75 Note 9 – Long-Term Liabilities
A. Governmental Activities
Summary of changes in the City’s governmental activities long-term liabilities for the year ended June 30, 2022 is as follows:
Balance
July 1, 2021 Balance Due within Due in More
(As Restated) Additions Deletions June 30, 2022 One Y ear Than One Y ear Gove r nme ntal Ac ti vi ti e s :
Compensated absences 1,513,384 $ 673,410 $ (552,818) $ 1,633,976 $ 408,494 $ 1,225,482$ Claims payable 6,574,151 268,495 (1,398,646) 5,444,000 876,495 4,567,505 Lease payable 421,358 16,004 (26,681) 410,681 72,590 338,091 Direct borrowing:
CEC Loan 778,064 752,122 - 1,530,186 - 1,530,186 V ehicle Financing - 43,497 - 43,497 8,699 34,798 Revenue bonds and certificates:
2012 Sales Tax Revenue Certificates 5,310,000 - (225,000) 5,085,000 235,000 4,850,000 2017 Lease Revenue Refunding Bonds 6, 015,567 - (244,523) 5,771,044 253,469 5,517,575 2018 Lynwood Housing Rev Bonds 16, 535,000 - (1,575,000) 14,960,000 1,630,000 13,330,000 2019A Measure M Sales Tax Bond 12,365,000 - (110,000) 12,255,000 115,000 12,140,000 2019B Measure R Sales Tax Bond 2,105,000 - (80,000) 2,025,000 85,000 1,940,000 2019A PFA Lease Revenue Refunding Bon 8,025,000 - (390,000) 7,635,000 400,000 7,235,000 2019B PFA Lease Revenue Refunding Bond 13,955,000 - - 13,955,000 - 13,955,000 2020 PFA Lease Revenue Bonds 13,500,000 - - 13,500,000 - 13,500,000 Subtotal 77,810,567 - (2,624,523) 75,186,044 2,718,469 72,467,575 Add: premium 1,014,445 - (40,481) 973,964 - 973,964 Less: discount (738,111) - 54,709 (683,402) - (683,402) Total bonds and certificates 78,086,901 - (2,610,295) 75,476,606 2,718,469 72,758,137 Total governmental activities 87,373,858$ 1,753,528$ (4,588,440)$ 84,538,946$ 4,084,747$ 80,454,199$
Debt service payments for governmental activities are made from Debt Service Funds. The compensated absences are primarily liquidated from the General Fund.
Claims Payable
The City is self-insured for general liability and workers' compensation claims. The City records losses for claims incurred but not reported when the probable amount of loss can be reasonably estimated. Total amount of estimated claims outstanding at June 30, 2022 is $5,444,000.
Lease Payable
The City entered into leases for the machine uses. The terms of the agreements range from 18 months to 60 months.
The interest rates used were between 0.218% to 0.632% based on the term of the agreements.
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 162 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
76 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease Payable (Continued)
Principal and interest payments to maturity at June 30, 2022 are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 72,590 $ 2,264 $ 74,854 $ 2024 197,373 1,149 198,522 2025 135,503 276 135,779 2026 4,404 19 4,423 2027 811 1 812 Total 410,681$ 3,709 $ 414,390$
CEC Loan
On December 10, 2019; the City and the California Energy Resources Conservation and Development Commission (the “Energy Commission”) entered into a loan agreem ent (“CEC Loan”) in the amount up to $1,734,071. Loan funds will be disbursed on a reimbursement basis based on invoices submitted by the City. All funds disbursed with interest payable will be repaid to the Energy Commissi on and will bear simple interest at an annual rate of 1%. Payment of interest will be due at the time of semiannual scheduled loan repayment installments to the Energy Commission, and interest accrued from the time of disbursal of funds to the City until receipt of full loan repayment to the Energy Commission. Estimated project completi on date is August 1, 2022. During the year ended June 30, 2022, the City expended and received an additional funding in the amount of $752,122. Cumulatively, the loans payable amounted to $1,530,186 at June 30, 2022.
The debt service schedule for CEC loan is as follows:
Y ear Ending
June 30, Principal Interest Total
2023 - $ - $ - $ 2024 87,233 46,677 133,910 2025 118,507 15,403 133,910
2026 119,695 14,215 133,910
2027 120,895 13,015 133,910
2028-2032 622,851 46,700 669,551 2033-2037 587,796 14,801 602,597 Subtotal 1,656,977 $ 150,811 $ 1,807,788$ Less amount drew on September 30, 2022 (126,791) - (126,791) Total 1,530,186$ 150,811 $ 1,680,997$
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 163 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
77 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Vehicle Financing (Continued)
On June 8, 2022, the City has entered into vehicle fina nce agreement with AutoNation Toyota Cerritos. The term of the agreement is 60 monthly payment with zero interest and principal due starting on July 23, 2022. The outstanding balance as of June 30, 2022 was $43,497.
Future payments are as follows:
Y ear Ending June 30, Principal Interest Total
2023 8,699$ -$ 8,699$ 2024 8,699 - 8,699 2025 8,699 - 8,699 2026 8,700 - 8,700 2027 8,700 - 8,700 Subtotal 43,497$ -$ 43,497$
City of Lynwood Measure R Sales Tax Revenue Certificates, Series 2012
On December 5, 2012, the City i ssued $6,850,000 Measure R Sales Tax Revenue Certificates, Series 2012. The proceeds were used to finance the costs of the acquisition, construction, installation and equipping of certain public capital improvements for the City, fund a reserve account and pay cost of issuance of the bonds. Interest on the bonds is payable semi-annually each June 1 and December 1, beginning June 1, 2013. Principal matures each June 1 beginning 2014 and maturing in 2039. Interest rates on the bonds vary between 1.75% and 4.00%. The principal balance outstanding at June 30, 2022 was $5,085,000.
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 235,000$ 158,619 $ 393,619 $
2024 240,000 152,744 392,744
2025 245,000 146,444 391,444
2026 255,000 139,706 394,706
2027 260,000 132,694 392,694
2028-2032 1,430,000 540,288 1,970,288 2033-2037 1,670,000 298,406 1,968,406 2038-2039 750,000 38,138 788,138 Total 5,085,000$ 1,607,039$ 6,692,039$
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 164 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
78 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
City of Lynwood Lease Revenue Refunding Bonds, Series 2017
In April 2017, the City issued $7, 685,000 Lease Revenue Bonds to current refund Lynwood Public Financing Authority 2003 Lease Revenue Refunding Bonds Series A and B, to finance the costs of the 2017 capital improvement projects (“2017 Project”), and to pay for the cost of issuance. Lynwood Public Financing Authority 2003 Lease Revenue Refunding Bonds Series A and B were fully redeemed on May 11, 2017. Interest on the bonds is payable semi-annually each March 1 and September 1 beginning September 1, 2017 at a rate of 3.72% annum.
Principals matures each September 1 beginning in 2017 and maturing in 2035. The refunding resulted in economic gain in the amount of $60,285 and the saving in debt service in the amount of $74,625. The principal balance outstanding at June 30, 2022 was $5,771,044.
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 253,469$ 209,968 $ 463,437 $
2024 258,854 200,439 459,293
2025 270,821 190,587 461,408
2026 279,895 180,344 460,239
2027 290,308 169,738 460,046
2028-2032 2,007,703 661,393 2,669,096 2033-2036 2,409,994 183,287 2,593,281 Total 5,771,044$ 1,795,756 $ 7,566,800 $
Lynwood Housing Authority Taxable Revenue Bonds, Series 2018
On November 1, 2018, the Lynwood Housing Authority issued $19,705,000 Lynwood Housing Authority Taxable Revenue Bonds, Series 2018 pursuant to th e provisions of Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code, a resolution adopted by the H ousing authority. The Housing Authority is issuing the Bonds to satisfy the terms of a settlement agreement relating to Rogel, et al. v. State of California Department of Finance, et al. and the construction of a multifamily housing project, fund a reserve fund for the Bonds, and provide for the costs of issuing the Bonds. Principal matures each March 1 and September 1 beginning March 1, 2019 and maturing in September 1, 2029. Inte rest rates on the bonds vary between 3.120% and 3.980%. The principal balance outstanding at June 30, 2022, including unamortized discount of $266,481, was $14,693,519.
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 165 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
79 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lynwood Housing Authority Taxable Revenue Bonds, Series 2018 (Continued)
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 1,630,000$ 587,942 $ 2,217,942$
2024 1,690,000 527,779 2,217,779
2025 1,755,000 465,249 2,220,249
2026 1,825,000 395,400 2,220,400
2027 1,900,000 322,400 2,222,400
2028-2030 6,160,000 499,200 6,659,200 Subtotal 14,960,000 2,797,970 17,757,970 Less - discount (266,481) - (266,481) Total 14,693,519$ 2,797,970$ 17,491,489$
Lynwood Public financing Authority Measure M Sales Tax Bond, Series 2019A
On February 1, 2019, the Lynwood Public Financing Authority issued the $13,060,000 Lynwood Public Financing Authority Sales Tax Revenue Bonds, Se ries 2019A (“2019A Bonds”) to finance a portion of the cost associated with certain transportation projects of the City, fund a reserve account, and pay cost of issuance of the bonds. The 2019A Bonds are limited obligation of the Authority and ar e payable as to principal of, premium, and interest exclusively from the Pledged Measure M Receipts and any other funds pledged under the agreement. Interest rate is 4.000% per annum and w ill be payable on June 1, and December 1 of each year commencing June 1, 2019 to 2048. The principal balance outstanding at June 30, 2022 including unamortized premium of $832,676 was $13,087,676.
Future debt service payments for the 2019A Bonds are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 115,000$ 544,700 $ 659,700 $
2024 120,000 540,100 660,100
2025 125,000 535,300 660,300
2026 130,000 530,300 660,300
2027 135,000 525,100 660,100
2028-2032 780,000 2,517,500 3,297,500 2033-2037 970,000 2,328,713 3,298,713 2038-2042 3,205,000 2,078,294 5,283,294 2043-2047 5,420,000 1,193,063 6,613,063 2048 1,255,000 65,886 1,320,886 Subtotal 12,255,000 10,858,956 23,113,956 Add - premium 832,676 - 832,676 Total 13,087,676$ 10,858,956 $ 23,946,632 $
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 166 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
80 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lynwood Public Financing Authority Measure R Sales Tax Bond, Series 2019B
On February 1, 2019, the Lynwood Public Financing Authority issued the $2,395,000 Lynwood Public Financing authority Sales Tax Revenue Bonds (“2019B Bonds”) to prepay all of the $2,740,000 Lynwood Public Financing Authority 2019 Bond Anticipation Note, fund a reserve account , and pay cost of issuance of the bonds. Interest will be payable on June 1, and December 1 of each year commencing June 1, 2019. The 2019A Bonds are limited obligation of the Authority and are payable as to principal of, premium, and interest exclusively from the Pledged Measure R Receipts and any other funds pledged under the agreement. Interest rate will be payable on June 1, and December 1 of each year commencing June 1, 2019 to 2039. Interest rates on the bonds vary between 3.000% and
5.000%. The principal balance outstanding at June 30, 2022 including unamortized premium of $141,288 was $2,166,288.
Future debt service payments for the 2019B Bonds are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 85,000 $ 80,663 $ 165,663 $ 2024 90,000 77,263 167,263 2025 95,000 73,663 168,663 2026 95,000 69,863 164,863 2027 100,000 66,063 166,063
2028-2032 555,000 261,063 816,063 2033-2037 695,000 127,850 822,850 2038-2039 310,000 16,260 326,260 Subtotal 2,025,000 772,688 2,797,688 Add - premium 141,288 - 141,288 Total 2,166,288$ 772,688 $ 2,938,976$
Lynwood Public Financing Authority Lease Revenue Refunding Bonds, Series 2019A and B
On November 26, 2019, the Lynwood Public Financi ng Authority issued the $8,465,000 Lynwood Public Financing Authority Lease Revenue Refunding Bonds Series 2019A (federally taxable) to provide funds to refund Lease Revenue Bonds, 2010 Series A (Civic Center Improvement Project), and to pay cost of issuance of the bonds.
Interest will be payable on April 1, and October 1 of each year commencing April 1, 2020. Interest rate will be payable on June 1, and October 1 of each year commencing October 1, 2020 to 2040. Interest rates on the bonds vary between 2.153% and 3.961%. The principal balan ce outstanding at June 30, 2022 including unamortized discount of $10,678 was $7,624,322.
Lease Revenue Bonds, 2010 Series A were fully redeemed on September 1, 2020 . These advance refunding resulted in an economic gain (differe nce between the present value of the de bt service payments on the new and old debt) of $2,286,454 and a reduction of total debt service payments of $3,028,954.
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 167 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
81 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lynwood Public Financing Authority Lease Revenue Refunding Bonds, Series 2019A and B (Continued)
Future debt service payments for the Series 2019A Bonds are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 400,000$ 247,556 $ 647,556 $
2024 415,000 237,888 652,888
2025 420,000 227,483 647,483
2026 435,000 216,164 651,164
2027 445,000 203,841 648,841
2028-2032 2,055,000 813,513 2,868,513 2033-2037 1,780,000 498,165 2,278,165 2038-2041 1,685,000 133,301 1,818,301 Subtotal 7,635,000 2,577,911 10,212,911 Less - discount (10,678) - (10,678) Total 7,624,322$ 2,577,911 $ 10,202,233 $
On November 26, 2019, the Lynwood Public Financi ng Authority issued the $13,955,000 Lynwood Public Financing Authority Lease Revenue Refunding Bonds Seri es 2019B (tax-exempt) to provide funds to finance a portion of the costs associated with certain park improvements within the City limits and to pay cost of issuance of the bonds. Interest will be payable on April 1, and Oc tober 1 of each year commencing April 1, 2020. Interest rate will be payable on June 1, and October 1 of each year commencing October 1, 2020 to 2049. Interest rates on the bonds vary between 2.750% and 3.150%. Principal ma tures each October 1 beginning October 1, 2036 and maturing in October 1, 2049. The principal balance outst anding at June 30, 2022 including unamortized discount of $300,313 was $13,654,687.
Future debt service payments for the Series 2019B Bonds are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 - $ 415,900$ 415,900 $ 2024 - 415,900 415,900 2025 - 415,900 415,900 2026 - 415,900 415,900 2027 - 415,900 415,900 2028-2032 - 2,079,500 2,079,500 2033-2037 540,000 2,072,075 2,612,075 2038-2042 3,425,000 1,787,525 5,212,525 2043-2047 5,965,000 1,061,775 7,026,775 2048-2050 4,025,000 183,375 4,208,375 Subtotal 13,955,000 9,263,750 23,218,750 Less - discount (300,313) - (300,313) Total 13,654,687$ 9,263,750 $ 22,918,437 $
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 168 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
82 Note 9 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lynwood Public Financing Authority Lease Revenue Bonds Series 2020A
On December 10, 2020, Lynwood Public Financing Authority issued the $13,500,000 Lynwood Public Financing Authority Lease Revenue Bonds Series 2020A to provide funds to finance working capital for the City’s General Fund or such other purposes as the City may determine including public capital improveme nts and to fund a debt service reserve fund for the bonds, and to pay costs of issuance of the bonds. Interest on the bonds is payable semiannually on April 1 and October 1 of each year, commen cing April 1, 2021. Interest rates on the bonds vary between 1.793% and 4.195%. Principal matures each Oc tober 1 beginning October 1, 2023 and maturing in October 1, 2040. The principal balance outstanding at June 30, 2022 including unamortized discount of $105,930 was $13,394,070.
Future debt service payments for the Lynwood Public Financing Authority Lease Revenue Bonds Series 2020A are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 - $ 481,354$ 481,354 $ 2024 575,000 481,354 1,056,354 2025 585,000 471,044 1,056,044 2026 595,000 457,384 1,052,384 2027 610,000 443,491 1,053,491 2028-2032 3,340,000 1,928,023 5,268,023 2033-2037 3,990,000 1,281,950 5,271,950 2038-2041 3,805,000 407,125 4,212,125 Subtotal 13,500,000 5,951,725 19,451,725 Less - discount (105,930) - (105,930) Total 13,394,070$ 5,951,725 $ 19,345,795 $
B. Business-Type Activities
Summary of changes in business-type activities long-term debt for the year ended June 30, 2022 is as follows:
Balance
July 1, 2021 Balance Due within Due in More
(As Restated) Additions Deletions June 30, 2022 One Y ear Than One Y ear Business-type Activities:
Compensated absences 386,319$ 161,382$ (169,280)$ 378,421$ 94,605$ 283,816$ Lease payable 6,440 - (1,878) 4,562 1,671 2,891 Revenue bonds:
2014 Revenue Refunding Bonds 4,035,000 - (240,000) 3,795,000 250,000 3,545,000 2017 A Revenue Refunding Bonds 4,965,000 - (570,000) 4,395,000 580,000 3,815,000 2017 B Revenue Refunding Bonds 17,590,000 - (60,000) 17,530,000 65,000 17,465,000 2020 Revenue Bonds 20,000,000 - (95,000) 19,905,000 100,000 19,805,000 Subtotal 46,590,000 - (965,000) 45,625,000 995,000 44,630,000 Less: discount (266,615) - 12,180 (254,435) - (254,435) Total Revenue bonds 46,323,385 - (952,820) 45,370,565 995,000 44,375,565 T otal b usiness-typ e activ ities 46,716,144$ 161,382$ (1,123,978)$ 45,753,548$ 1,091,276$ 44,662,272$ FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 169 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
83 Note 9 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Lease Payable
The City has entered into leases for the machine uses. The terms of the ag reements range from 18 months to 60 months. The calculated interest rates used were between 0.218% to 0.632% based on the term of the agreements.
Principal and interest payments to maturity at June 30, 2022 are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 1,671 $ 17 $ 1,688$ 2024 1,331 10 1,341 2025 1,337 4 1,341 2026 223 1 224 Total 4,562$ 32$ 4,594$
Lynwood Utility Authority 2014 Enterprise Revenue Bonds
On January 8, 2014, the Lynwood Utility Authority issued $5,660,000 En terprise Revenue Bonds, Series 2014A, to advance refund $5,480,000 of the outstanding 2003 Enterprise Revenue Bonds and to pay the cost of issuing the bonds. Principal installments are due annually ranging in amounts from $180,000 to $390,000 plus interest at
4.130% through June 1, 2034. The bonds will be paid from and secured by the net revenues of the water and sewer enterprise of the City. The City has cove nanted that the net revenues in each y ear will be greater than or equal to the debt service payments on these bonds and any other parity debt.
Of the Series 2014A proceeds, $5,532,517 were used to purchase U.S. Government securities to refund in full the 2003 Enterprise Revenue Bonds. Those securities were placed in an irrevocable trust with an escrow agent to provide for all future debt service payments on the entir e balance of the 2003 Enterprise Revenue Bonds in the amount of $5,480,000. The 2003 Enterprise Revenue bonds were fully redeemed on February 10, 2014. As a result, the entire 2003 Enterprise Revenue Bonds are considered to be defeased and the liability for has been removed from the Statement of Net Position in the accompanying fina ncial statements. The advance refunding resulted in an economic gain (difference between the present value of the debt service payments on the new and old debt) of $265,453 and a reduction of total debt service payments of $416,902.
The principal balance outstanding at June 30, 2022 was $3,795,000.
Future debt service payments are as follow:
Y ear Ending
June 30, Principal Interest Total
2023 250,000$ 156,734 $ 406,734 $
2024 260,000 146,409 406,409
2025 270,000 135,671 405,671
2026 280,000 124,520 404,520
2027 295,000 112,956 407,956
2028-2032 1,670,000 371,081 2,041,081 2033-2034 770,000 47,908 817,908 Total 3,795,000$ 1,095,279 $ 4,890,279 $
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 170 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
84 Note 9 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Lynwood Utility Authority 2017 Series A Enterprise Revenue Refunding Bonds
On August 3, 2017, the Lynwood Utility Authority issu ed $5,750,000 of 2017 Series A Enterprise Refunding Revenue Bonds. The proceeds, which were used to partially refund, on an advance basis, some of the outstanding Lynwood Public Financing Authority Water Revenue 2009 Bonds Series A, for $5,600,735, fund a reserve fund for the bonds and pay the costs of issuance of the bonds . The net present value of savings, by doing the partial refunding, was $425,489. The outstanding balance of def eased 2009 series A Enterprise Revenue Bond was fully redeemed on June 1, 2019.
The 2017 Series A bonds consist of $5,750,000 of bonds maturing from 2018 through 2029.The serial bonds carry interest at rates of 2.42% and mature June 1, 2029. Inte rest is payable semi-annually every December 1 and June 1 with principal due June 1.
The bonds will be paid from, and secured by, the net revenues of the water a nd sewer enterprise of the City. The Lynwood Utility Authority has covenanted, to the maximum extent permitted by law, to set rates and charges for the service and facilities of water and sewer enterprise sufficient to provide net revenues each year equal to at least
1.25 times the aggregate annual amount of debt service payments on these bonds and any other parity debt.
The principal balance outstanding at June 30, 2022 was $4,395,000.
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 580,000$ 120,153 $ 700,153 $
2024 600,000 106,359 706,359
2025 610,000 92,323 702,323
2026 630,000 77,803 707,803
2027 640,000 47,795 687,795
2028-2029 1,335,000 48,660 1,383,660 Total 4,395,000$ 493,093 $ 4,888,093$
Lynwood Utility Authority 2017 Series B Enterprise Revenue Bonds
On September 7, 2017, the Lynwood Utility Authority issued $17,875,000 of 2017 Series B Enterprise Revenue Bonds. The proceeds fund a project fund, a reserve fund for the bonds, and pay the costs of issuance of the bonds.
The 2017 Series B bonds consist of $17,875,000 of bonds maturing from 2018 through 2047. The serial bonds carry interest at rates of 2.0% to 5.0% with an averag e of 3.25% and mature June 1, 2037. Two issues of term bonds mature June 1, 2042 and 2047. Interest is payable semi-annually every December 1 and June 1 with principal due June 1. The term bonds carry interest rates of 3.47% and 3.53% respectively.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
85 Note 9 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Lynwood Utility Authority 2017 Series B Enterprise Revenue Bonds (Continued)
The bonds will be paid from, and secured by, the new ne t revenues from a rate increase of the water and sewer enterprise of the City. The Lynwood Utility Authority has covenanted, to the maximum extent permitted by law, to set rates and charges for the service and facilities of water and sewer enterprise sufficient to provide net revenues each year equal to at least 1.25 times the aggregate a nnual amount of debt service payments on these bonds and any other parity debt.
The principal balance outstanding at June 30, 2022, including unamortized discount of $97,755, was $17,432,245.
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 65,000 $ 597,706 $ 662,706 $ 2024 65,000 595,106 660,106 2025 70,000 592,506 662,506 2026 70,000 589,706 659,706 2027 75,000 586,906 661,906 2028-2032 1,500,000 2,832,131 4,332,131 2033-2037 3,865,000 236,278 4,101,278 2038-2042 5,435,000 1,618,756 7,053,756 2043-2047 6,385,000 661,163 7,046,163 Subtotal 17,530,000 8,310,258 25,840,258 Less - discount (97,755) - (97,755) Total 17,432,245$ 8,310,258 $ 25,742,503 $
Lynwood Utility Authority 2020 Series A Enterprise Revenue Bonds
On April 2, 2020, the Lynwood Utility Authority issued $20,000,000 Lynwood Utility Authority Enterprise Revenue Bonds 2020 Series A (the “Green Bonds”). The Bonds were issued to finance certain improvements to the water system and the sewer system of the City, to purchase a municipal bond insurance policy and a reserve fund surety for the Green Bonds, and to pay the cost of the issuance of the Green Bonds.
The serial bonds carry interest rate of 4% and mature June 1, 2050. Interest is payable semi-annually every December 1 and June 1 beginning December 1, 2020.
The bonds will be paid from, and secured by, the new ne t revenues from a rate increase of the water and sewer enterprise of the City. The Lynwood Utility Authority has covenanted, to the maximum extent permitted by law, to set rates and charges for the service and facilities of water and sewer enterprise sufficient to provide net revenues each year equal to at least 1.25 times the aggregate a nnual amount of debt service payments on these bonds and any other parity debt.
The principal balance outstanding at June 30, 2022, including unamortized discount of $156,680, was $19,748,320.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
86 Note 9 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
Lynwood Utility Authority 2020 Series A Enterprise Revenue Bonds (Continued)
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 100,000$ 728,506 $ 828,506 $
2024 100,000 724,506 824,506
2025 105,000 720,506 825,506
2026 110,000 716,306 826,306
2027 115,000 711,906 826,906
2028-2032 1,710,000 3,447,331 5,157,331 2033-2037 2,895,000 2,974,494 5,869,494 2038-2042 3,445,000 2,408,681 5,853,681 2043-2047 4,110,000 1,758,819 5,868,819 2048-2050 7,215,000 529,250 7,744,250 Subtotal 19,905,000 14,720,305 34,625,305 Less - discount (156,680) - (156,680) Total 19,748,320$ 14,720,305 $ 34,468,625 $
C. Fiduciary Activities
Summary of changes of the Successor Agency’s long-term debt is as follows:
Balance Balance Due Within Due in More
July 1, 2021 Additions Repaym ents June 30, 2022 One Y ear Than One Y ear 2011 Tax Allocation Bonds,
Series A 14,290,000$ -$ (605,000)$ 13,685,000$ 705,000$ 12,980,000$ 2011 Tax Allocation Bonds,
Series B 4,235,000 - (205,000) 4,030,000 220,000 3,810,000 2013 Tax Allocation Refunding Bonds,
Project Area A 6,005,000 - (630,000) 5,375,000 665,000 4,710,000 2013 Tax Allocation Refunding Bonds,
Alameda Project Area 325,000 - (75,000) 250,000 80,000 170,000 Net prem ium (discount) (66,464) - (14,454) (80,918) - (80,918) Total 26,302,990$ -$ (1,529,454)$ 23,259,082$ 1,670,000$ 21,589,082$
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
87 Note 9 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2011 Taxable Tax Allocation Bonds, Series A and B
On March 7, 2011, the former Lynwood Redevelopment Ag ency issued Tax Allocation Bonds Series A in the amount of $18,480,000 and Tax Allocation Bonds Series B in the amount of $5,660,000. For Series A, the interest rates vary from 6.75% to 7.25% and for Series B, the interest rates vary from 9% to 9.5%.
The primary purpose of the issuance of the 2011 Tax Allocation Bonds is to finance redevelopment activities within or of benefit to the Agency and finance low and mo derate income housing projects throughout the geographic boundaries of the City for the benefit to the Agency’s redevelopment project areas. The principal balance outstanding as of June 30, 2022, including unamortized discount of $305,513, is $17,409,487.
Future debt service payments for Series A are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 705,000$ 931,281$ 1,636,281$
2024 750,000 882,175 1,632,175
2025 805,000 829,694 1,634,694
2026 855,000 773,669 1,628,669
2027 915,000 713,931 1,628,931
2028-2032 6,775,000 2,459,925 9,234,925 2033-2037 1,905,000 717,569 2,622,569 2038-2039 975,000 71,956 1,046,956 Subtotal 13,685,000 7,380,200 21,065,200 Less - discount (193,201) - (193,201) Total 13,491,799$ 7,380,200$ 20,871,999$
Future debt service payments for Series B are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 220,000$ 361,763 $ 581,763 $
2024 240,000 341,063 581,063
2025 260,000 318,563 578,563
2026 305,000 293,138 598,138
2027 335,000 264,338 599,338
2028-2032 1,755,000 924,181 2,679,181 2033-2037 590,000 304,475 894,475 2038-2039 325,000 31,588 356,588 Subtotal 4,030,000 2,839,109 6,869,109 Less - discount (112,312) - (112,312) Total 3,917,688$ 2,839,109$ 6,756,797$
FINAL DRAFT 02.16.2023
City Council Regular Meeting - Page 174 of 582
City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
88 Note 9 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2013A Tax Allocation Refunding Bonds (Project Area A)
On December 24, 2013, the Successor Agency of the former Lynwood Redevelopment Agency issued $9,785,000 of Tax Allocation Refunding Bonds (Project Area A) , Series 2013A, to advance refund $9,840,000 of the outstanding 1999 Tax Allocation Bonds Series A, and to pay the cost of issuing the bonds. Principal installments are due annually ranging in amounts from $490,000 to $880 ,000 plus interest at 4.0% to 5.0% through September 1, 2028. The interest and principal of the bonds are payable from pledged tax increment revenues of the Redevelopment Property Tax Fund (“RPTF”).
Of the Series 2013A proceeds, $10,129,688 were used to purchase U.S. Government securities to refund in full the 1999 Tax Allocation Bonds Series A. Those securities were placed in an irrevocable trust with an escrow agent to provide for all future debt service payments on the entire balance of the 1999 Tax Allocation Bonds Series A in the amount of $9,840,000. As a result, the entire 1999 Tax Allocation Bonds Series A, are considered to be defeased and the liability has been removed from the Statement of Fiduciary Net Position in the accompanying financial statements.
1999 Tax Allocation Bonds Series A were fully redeemed on March 1, 2014. The advance refunding resulted in an economic gain (difference between the present value of the debt service payments on the new and old debt) of $1,008,941 and a reduction of total debt service payments of $1,409,794.
The principal balance outstanding as of June 30, 2022, including unamortized premium of $222,810, is $5,597,810.
Future debt service payments are as follows:
Y ear Ending
June 30, Principal Interest Total
2023 665,000$ 234,119$ 899,119$
2024 705,000 199,869 904,869
2025 730,000 167,644 897,644
2026 765,000 136,788 901,788
2027 795,000 103,141 898,141
2028-2029 1,715,000 86,875 1,801,875 Subtotal 5,375,000 928,436 6,303,436 Premium 222,810 - 222,810 Total 5,597,810$ 928,436$ 6,526,246$
2013A Tax Allocation Refunding Bonds Alameda Project Area
On December 24, 2013, the Successor Agency of the former Lynwood Rede velopment Agency issued $810,000 Tax Allocation Refunding Bonds - Alameda Project Ar ea, Series 2013A, to advance refund $820,000 of the outstanding 1999 Tax Allocation Bonds Alameda Project Area, and to pay the cost of issuing the bonds. Principal installments are due annually ranging in amounts from $65,000 to $85,000 plus interest at 2.0% to 4.125% through September 1, 2024. The interest and principal of the bonds are payable from pledged tax increment revenues of the RPTF.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
89 Note 9 – Long-Term Liabilities (Continued)
C. Fiduciary Activities (Continued)
2013A Tax Allocation Refunding Bonds Alameda Project Area (Continued)
Of the Series 2013A proceeds, $845,83 0 were used to purchase U.S. Government securities to refund in full the 1999 Tax Allocation Bonds Alameda Project Area. Those secur ities were placed in an i rrevocable trust with an escrow agent to provide for all future debt service payments on the entire balance of the 1999 Tax Allocation Bonds Alameda Project Area in the amount of $820,000. As a result, the entire 1999 Tax Allocation Bonds Alameda Project Area, are considered to be defeased and the liability for has been removed from the Statement of Fiduciary Net Position in the accompanying financial statements.
1999 Tax Allocation Bonds Series A were fully redeemed on March 1, 2014. The advance refunding resulted in an economic gain (difference between the present value of the debt service payments on the new and old debt) of $43,260 and a reduction of total debt service payments of $182,457.
The principal balance outstanding as of June 30, 2022, including unamortized premium of $1,785, is $251,785.
Future debt service payments are as follows:
Ye a r En d in g
June 30, Principal Interest Total
2023 80,000$ 8,406$ 88,406$
2024 85,000 5,206 90,206
2025 85,000 1,753 86,753
Subtotal 250,000 15,365 265,365 Premium 1,785 - 1,785 Total 251,785$ 15,365$ 267,150$
Note 10 – Risk Management
The City is a member of Independent Cities Risk Management Authority (“ICRMA”). ICRMA was established in 1980 to provide excess insurance coverage, risk management and self-insurance services for California cities. ICRMA is a Joint Powers Authority (“JPA”) directed by a Governing Board consisting of one representative from each Member City.
ICRMA offers members excess liability, excess workers’ compensation, pr operty and special events coverage.
Currently there are twenty-two member cities. ICRMA ma intains a management services agreement with Bickmore Risk Services to provide staff services to the Authority.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
90 Note 10 – Risk Management (Continued)
A. Liability Program
ICRMA provides coverage on an occurrence basis to Members of the Liability Program between the Members' Self-Insured Retentions (SIR’s) and $3 million. The C ity of Lynwood currently has SIR of $500,000. Members pay an annual premium consisting of two components:
risk premium - to fund losses as estimated by ICRMA’ s independent actuary and to fund the cost of reinsurance.
administrative premium - to pay management and operations costs.
The combination of self-funding and the ability to attract reinsurance provides ICRMA Members with affordable and broad coverage in all stages of the commercial in surance market. The Liability Program Bylaws set forth claims handling and risk management guidelines and other program terms and conditions.
Currently, coverage is provided as noted below:
ICRMA Reinsurer
Public Officials Errors &
Omission Liability
$3,000,000 each occurrence* $20,000,000 each occurrence & annual aggregate ex cess of
ICRMA
Employment Practices Liability $3,000,000 each occurrence* $20,000,000 each occurrence & annual aggregate ex cess of
ICRMA
Other Liability $3,000,000 each occurrence* $30,000,000 each occurrence ex cess of ICRMA
*Less City of Lynwood’s Self-Insured Retention of $200,000 each occurrence.
B. Workers’ Compensation Program
The Workers' Compensation Program combines self-funding and group purc hased excess insurance. Sixteen ICRMA Members participate in this program. Member s gain lower costs by comb ining to purchase excess coverage as one large entity and they gain cost stability by joining together to fund losses between the Members’ SIRs and the excess insurance attachment point.
Currently, the ICRMA Workers’ Compensation program covers the differe nce between the City’s $500,000 SIR and $2 million each accident. Commercial excess insurance attaches above the ICRMA $5 million limit and extends to $100 million each accident.
Members pay an annual premium consisting of two components:
risk premium - to fund losses as estimated by ICRMA’s independent actuary and to fund the cost of excess insurance.
administrative premium - to pay management and operations costs.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
91 Note 10 – Risk Management (Continued)
C. All Risk Property Program
The City of Lynwood participates in the Property In surance Program including auto, earthquake, and flood insurance. The property coverage limit is $250 million per occurrence othe r than auto, earthquake, and flood insurance. Auto insurance coverage limit is $10 million for all vehicles and $1 million per vehicle. Earthquake and flood insurance coverage limit is $75 million per occurrence. The City also pa rticipates in the Crime, Cyber, and Terrorism Insurance Programs with coverage limits of $5 million per loss, $3 million per member, and 10 million per occurrence, respectively. Due to the cost of earthquake insurance, th e City only covers essential buildings for this insurance. Premiums for these policies are paid annually and are not subject to retroactive adjustments.
While the ultimate amount of losses incurred through June 30, 2022 are dependent on future developments, based upon information from the City Attorney, outside counsel, third party administrators, and others involved with the administration of the programs, management believes that the designation is adequate to cover such losses. Costs relating to the litigation of claims are expensed as incurred. Losses for claims incurred but not reported are recorded when the probable amount of loss can be reasonably estimated.
D. Other Programs
The City purchases fidelity coverage for its key officials in the amounts of $10,000 to $50,000 with no deductible.
Premiums for these policies are paid annually and are not subject to retroactive adjustments.
E. Liability for Self-Insured Claims
The following is a schedule of changes in claims and judgments for the three years ended June 30, 2022:
Workers' General
Compensation Liability Total
Claims and judgements at June 30, 2019 3,322,800$ 1,658,359$ 4,981,159$ Claims incurred and changes in estimates (186,945) 2,699,316 2,512,371 Claim payments (380,599) (592,026) (972,625) Claims and judgements at June 30, 2020 2,755,256 3,765,649 6,520,905 Claims incurred and changes in estimates 796,142 360,189 1,156,331 Claim payments (381,153) (721,932) (1,103,085) Claims and judgements at June 30, 2021 3,170,245 3,403,906 6,574,151 Claims incurred and changes in estimates 268,495 (918,217) (649,722) Claim payments (281,740) (198,689) (480,429) Claims and judgements at June 30, 2022 3,157,000$ 2,287,000$ 5,444,000$
As of June 30, 2022 the workers' compensation claims payable in the amount of $3,157,000 and the general liability claims payable in the amount of $2,287,000 were reported in the Self-Insurance Internal Service Fund.
During the past three fiscal (claim) years, none of th e above programs of protecti on have had settlements or judgments that exceeded pooled or insured coverage. Ther e have been no significant reductions in pooled or insured liability coverage from the prior year.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
92 Note 11 – Defined Benefit Pension Plans
The following is the summary of net pension liabilities and the related deferred outflows of resources and deferred inflows of resources at June 30, 2022 and pension expenses for the year then ended:
Business-
Governmental Type
Activities Activities Total
Deferred outflows of resources:
Pension contributions after measurement date:
M iscellaneous 3,428,430 $ 856,113 $ 4,284,543 $ Safety 733,353 - 733,353
Total contribution after measurement date 4,161,783 856,113 5,017,896 Difference between expected and actual experience:
M iscellaneous 1,218,471 304,265 1,522,736 Safety 1,028,824 - 1,028,824 Total difference between expected and actual experience 2,247,295 304,265 2,551,560 Adjustment due to difference in proportions
Safety 38,423 - 38,423
Total deferred outflows of resources 6,447,501$ 1,160,378$ 7,607,879$ Net pension liabilities:
M iscellaneous 18,105,066$ 4,521,016$ 22,626,082$
Safety 6,021,824 - 6,021,824
Total net pension liabilities 24,126,890$ 4,521,016$ 28,647,906$ Deferred inflows of resources:
Actual earnings on pension plan investments in excess of projected earnings:
M iscellaneous 6,746,288 1,684,616 8,430,904
Safety 3,584,139 - 3,584,139
Total Actual earnings on pension plan investments
in excess of projected earnings: 10,330,427 1,684,616 12,015,043 Adjustment due to difference in proportions
Safety 571,431 - 571,431
Total deferred inflows of resources 10,901,858$ 1,684,616$ 12,586,474$ Pension expenses (credit):
M iscellaneous (274,409)$ 4,586,217$ 4,311,808$
Safety 2,425,447 - 2,425,447
Total net pension expenses 2,151,038$ 4,586,217$ 6,737,255$
FINAL DRAFT 02.16.2023
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
93 Note 11 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plans
Plan Description
The City contributes to two defined benefit pension plans: Employees Retir ement Plan (Miscellaneous Plan) and Fire Retirement Plan (Safety Plan). Each plan provid es retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and bene ficiaries. The Miscellaneous Plan is part of the Public Agency portion of the California Public Employees Retirement System (“CalPERS”), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for the participating public employers within the State of California. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS’ audited financial statements can be obtained at CalPERS’ website under Forms and Publications
Effective November 1, 2000, the City’s fire department was transferred to Los Angeles County (the “County”). As a result, certain safety members (employees of the fire de partment) of CalPERS have ceased to be employed by the fire department of the City and have been employe d by the County, and upon such transfer, these safety members have become members of Los Angeles County Employees Retirement Association (“LACERA”). This transfer did not apply to safety members who have retired on or before the effective date of the transfer. Those retirees will continue to receive their pe nsion benefits from the City's Safety Plan with CalPERS. The City of Lynwood’s Safety Plan is currently part of the CalPERS Inactive Agency Risk Pool , a cost-sharing multiple- employer defined benefit plan.
Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under bot h plans are established by the State statute and City resolution as follows:
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 60 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 52
Benefit per year of service, as a percentage of salary 2.0% to 3.0% 1.0% to 2.5% Required employee contribution rates 8.000% 5.750%
Required contribution during measurement period 10.940% 10.940% Safety
Hire Date
Prior to
January 1, 2013
Benefit formula 2% @ 50
Benefit vesting schedule 3 years of service
Benefit payments Monthly for life
Retirement age 50
Benefit per year of service, as a percentage of salary 0.000% Required employee contribution rates 0.000%
Required contribution during measurement period 0.000%
Miscellaneous
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
94 Note 11 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plans (Continued)
Benefit Provided
Participants are eligible for Service Retirement upon attainment of age 50 with at least 5 years of credited service (total service across all CalPERS employers, and with cer tain other retirement systems with which CalPERS has reciprocity agreements). For employees hired into a plan with the 1.5 percent at 65 formula, eligibility for service retirement is age 55 with at least 5 years of service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service.
Participants becomes eligible for a de ferred vested retirement benefit when he or she leaves employment, keeps his or her contribution account balance on deposit with CalPERS, and has earned at least 5 years of credited service (total service across all CalPERS employers, and with cer tain other retirement systems with which CalPERS has reciprocity agreements). Members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for deferred status and upon attainment of age 50 (5 5 for employees hired into a 1.5% @ 65 plan). PEPRA miscellaneous members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for deferred status and upon attainment of age 52.
A participant is eligible for Non-Industrial Disability Retirem ent if he or she becomes disabled and has at least 5 years of credited service (total service across all CalPER S employers, and with certain other retirement systems with which CalPERS has reciprocity agreements). There is no special age requirement. Disabled means the member is unable to perform his or her job because of an illness or injury, which is expected to be permanent or to last indefinitely. The illness or injury does not have to be job related. A CalPERS member must be actively employed by any CalPERS employer at the time of disability in order to be eligible for this benefit. The standard Non- Industrial Disability Retirement benefit is a monthly a llowance equal to 1.8 percent of final compensation multiplied by service.
An employee’s beneficiary (or estate) may receive the basic death benefit if the member dies while actively employed. A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. A memb er’s survivor who is eligible for an y other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the member’s accumulated contributions, where interest is credited annually at the greater of 6 percent or the prevailing discount rate through the date of death, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthl y full-time rate of compensation during the 12 months preceding death.
Retirement and survivor allowances are adjusted each year in May for cost of living, beginning the second calendar year after the year of retirement. The standard cost-of-living adjustment (COLA) is 2 percent. Annual adjustments are calculated by first determining the lesser of 1) 2 percent compounded from the end of the year of retirement or 2) actual rate of inflation. The resulting increase is divi ded by the total increase provided in prior years. For any given year, the COLA adjustment may be less than 2 percent (when the rate of inflation is low), may be greater than the rate of inflation (when the rate of inflation is low after several years of high inflation) or may even be greater than 2 percent (when inflation is high after several years of low inflation).
FINAL DRAFT 02.16.2023
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
95 Note 11 – Defined Benefit Pension Plans (Continued)
A. General Information about the Pension Plans (Continued)
Employees Covered by Benefit Terms
At June 30, 2020, the valuation date, the following employees were covered by the benefit terms:
Miscellaneous Safety
Active employees 120 0
Transferred and terminated employees 191 5
Retired Employees and Beneficiaries 255 111
Total 566 116
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determ ined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
B. Net Pension Liability
Actuarial Methods and Assumption Used to Determine Total Pension Liability
The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Morta l i ty Ra te Ta bl e
1 Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of
GASB Statement No. 68
7.15%
2.50%
Varies by Entry Age and Service
Derived using CalPERS’ Membership Data for all Funds.
The lesser of contract COLA or 2.50% until Purchasing
Power Protection Allowance floor on purchasing power
applies, 2.50% thereafter
1The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are basedon the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
96 Note 11 – Defined Benefit Pension Plans (Continued)
B. Net Pension Liability (Continued)
Change of Assumptions
There were no changes in 2021.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return , CalPERS took into account bot h short-term and long-term market return expectations as well as the expected pensi on fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long term (11+ years) using a building-block approach. Using the expected nominal returns for both short- term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as followed:
Current Target Real Return Real Return
Asset Class1 Allocation Years 1 - 10 2 Years 11+3
Global equity 50.00% 4.80% 5.98%
Fixed income 28.00% 1.00% 2.62%
Inflation assets 0.00% 0.77% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
2 An expected inflation of 2.00% used
3 An expected inflation of 2.92% used
1 In the CalPER's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers w ill be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
97 Note 11 – Defined Benefit Pension Plans (Continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension lia bility for the City’s miscellaneous plan recognized over the measurement period.
Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 110,447,614$ 77,120,658$ 33,326,956$ Changes Recognized for the Measurement Period:
Service Cost 1,526,500 - 1,526,500 Interest on the total pension liability 7,857,531 - 7,857,531 Difference between expected and actual experience 1,142,164 - 1,142,164 Contributions from the employer - 3,532,629 (3,532,629) Contributions from employees - 622,025 (622,025) Net investment income - 17,149,454 (17,149,454) Benefit payments, including refunds of employee
contributions (4,914,961) (4,914,961) - Administrative expenses - (77,039) 77,039 Net Changes during July 1, 2020 to June 30, 2021 5,611,234 16,312,108 (10,700,874) Balance at June 30, 2021 (Measurement Date) 116,058,848$ 93,432,766$ 22,626,082$ Increase (Decrease)
Miscellaneous Plan
Proportionate Share of Net Pension Liability and Pension Expense
The following table shows the City’s safety plan’s pr oportionate share of the risk pool collective net pension liability over the measure period.
Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 20,212,602$ 12,316,259$ 7,896,343$ Balance at June 30, 2021 (Measurement Date) 19,576,509 13,554,685 6,021,824 Net Changes during 2020-2021 (636,093) 1,238,426 (1,874,519) Safety Plan
Increase (Decrease)
The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool.
(1) In determining a cost-sharing pl an’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2020). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension li ability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
98 Note 11 – Defined Benefit Pension Plans (Continued)
C. Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued)
(2) Using standard actuarial roll forward methods, the risk pool TPL is then com puted at the measurement date (June 30, 2021). Risk pool FNP at the measureme nt date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measure ment date denotes the aggregate risk pool’s FNP at June 30, 2021 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2020-2021).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of market value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively.
(5) The plan’s TPL as of the Measurement Date is equa l to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period.
(6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).
Deferred outflows of resources, deferred inflows of resources, and pension expense are allocated based on the City’s share of net pension liability at the end of the measurement date.
The City’s proportionate share of the net pension liability was as follows:
Safety Plan
June 30, 2020 0.072570%
June 30, 2021 0.111340%
Change - Increase (Decrease) 0.038770%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the plans as of the measu rement date, calculated using the discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:
Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan 38,707,352$ 22,626,082$ 9,408,218$ Safety Plan 8,656,991$ 6,021,824$ 3,857,360$ Plan's Net Pension L iability/(Asset)
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
99 Note 11 – Defined Benefit Pension Plans (Continued)
C. Changes in the Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense in the amounts of $4,311,808 and $2,425,447 for the miscellaneous plan and safety plan, respectively.
As of measurement date of June 30, 2021, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 4,284,543$ - $ Difference between expected and actual experience 1,522,736 - Net difference between projected and actual earning on
pension plan investments - (8,430,904) Total 5,807,279 $ (8,430,904) $
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 733,353$ -$ Difference between expected and actual experience 1,028,824 - Net Difference between Projected and Actual Earnings
on Pension Plan Investments - (3,584,139) Adjustment due to difference in proportions - (571,431) Employer contributions in excess of proportionate
share of contribution 38,423 -
Total 1,800,600$ (4,155,570)$
Safety Plan
The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.
The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous plan and the safety risk pool for the 2020-2021 measurement period is 2.2 and 3.7 years, which was obtained by dividing the total service years of 1,226 and 561,622 (the sum of remaining service lifetimes of the active employees) by 566 and 150,648 (the total number of participants: active, inactive, and retired), respectively.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
100
Note 11 – Defined Benefit Pension Plans (Continued)
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
$4,284,543 and $733,353 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contri butions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:
Measurement
Period Miscellaneous Safety
Ending June 30 Plan Plan
2022 (704,578)$ (601,449)$
2023 (1,840,914) (684,014)
2024 (2,023,787) (816,555)
2025 (2,338,889) (986,305)
2026 - -
Thereafter - -
(6,908,168)$ (3,088,323)$
of Resources
Deferred Outflows/(Inflows)
E. Payable to the CalPERS Plan
At June 30, 2022, the City reported a payable of $2,443 for the outstanding amount of contributions to the CalPERS Plan required for the year ended June 30, 2022.
F. Pension Tax Override
The City has established Retirement Special Revenue F und to accumulate property tax levied for the City employees’ retirement benefits.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
101
Note 12 – Other Postemployment Benefits (“OPEB”)
At June 30, 2022, net OPEB liability and related deferred outflows of resources and deferred inflows of resources are as follows:
Governmental Business - Type
Activities Activities Total
Deferred outflows of resources:
OPEB contributions made after measurement date 1,076,841$ 211,516 $ 1,288,357 $ Total deferred inflows of resources 1,076,841$ 211,516 $ 1,288,357 $ Net OPE B liability: 15,120,726$ 2,970,048 $ 18,090,774 $ Deferred inflows of resources:
Difference between expected and actual experience 3,314,523 651,046 3,965,569 Changes in assumptions 1,145,510 225,004 1,370,514 Net difference between projected and actual
earnings on OPEB plan investments 556,700 109,348 666,048 Total deferred inflows of resources 5,016,733$ 985,398 $ 6,002,131 $ OPE B expenses (credit): 1,369,881$ (806,851) $ 563,030 $
A. General Information about the OPEB Plan
Plan Description
In addition to the retirement plan descr ibed in Note 9, the City provides healthcare and life insurance benefits, in accordance with memorandum of understandings, to eligible retired employees in a single employer plan. The City joined and contributed to CalPERS California Employe rs’ Retiree Benefit Trust (“CERBT”) Fund in a single employer plan. As of June 30, 2022, there is no separate audited financial report available for the said plan. The OPEB plan is an agent multiple-employer plan.
Employees Covered by Benefit Term
Eligible participants to the plan at June 30, 2021, th e measurement date, the following numbers of participants were covered by the benefit terms:
Inactives currently receiving benefits 114
Inactives entitled to but not yet receiving benefits 31 Active employees 105
Total 250
Contributions
The City contributed $1,245,311 during the measureme nt period and $1,288,357 durin g the fiscal year ended June 30, 2022.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
102
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
B. Net OPEB Liability
The June 30, 2021 valuation is used to determine the June 30, 2022 total OPEB Liability.
Actuarial Assumptions
The total OPEB liability as of June 30, 2021 was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost M ethod Entry Age Normal, Level Percentage of Payroll Actuarial Assumptions:
Contribution Policy
Long-Term Expected Rate of Return on Assets
20-Year Municipal Bond Rate 2.16%
Disount Rate 6.25%
General Inflation 2.50% annually
Salary Increases Aggregate - 2.75% annually
M ortality Rate Table, Retirement, Disability,
Termination
M ortality Improvement
M edical Trend
PEMHCA Minimum
Healthcare participation for future retirees
Waived retiree re-election
Pay retiree pay-go outside the trust
6.25%
CalPERS 2000-2019 Experience Study
Non-Medicare - 6.50% for 2023, decreasing to an ultimate rate of
3.75% in 2076 and later years
Medicare (Non-Kaiser) - 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare (Kaiser) - 4.60% for 2023, decreasing to an ultimate rate of 3.75% in 2076
4% per annum
Medical - 95% for full benefit, 50% for PEMHCA minimum only benefit
Others - 55% for dental, 60% for vision, 60% for life.
Medical - 10% re-elect at age 65
Dental, vision, life-none
Mortality projected fully generational with Scale MP-2021
Discount Rate
6.25% per annum. This discount rate assumes the City continues to fully fund for its retiree health benefits through the California Employers’ Retiree Benefit Trust (“CERBT”) under its investment allocation strategy 1.
The long-term expected rate of return on OPEB plan i nvestments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major a sset class. These ranges are comb ined to produce the long- term expected rate of return by wei ghting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
103
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
B. Net OPEB Liability (Continued)
Expected Long-Term Rates of Return
Targ et Allocation1 Expected Real
Asset Class CERBT Strategy Rate of Return
Global Equity 59% 4.56%
Fixed Income 25% 0.78%
TIPS 5% -0.08%
Commodities 3% 1.22%
REITs 8% 4.06%
Total 100%
Assumed Long-term rate of inflation is 2.50%.
Long-term expected rate of return is 6.25%.
1 CalPERS approved new CERBT asset allocations in March 2022. This is not expected to impact the expected long-term rate of return assumption for CERBT Strategy 1.
C. Changes in Net OPEB Liability
The following table shows the changes in the net OPEB liability recognized over the measurement period.
Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 27,979,731 $ 4,521,390 $ 23,458,341 $ Changes recognized for the measurement period:
Service cost 516,313 - 516,313 Interest on the total OPEB liability 1,881,704 - 1,881,704 Changes of benefit terms - - - Difference between expected and actual experience (4,095,656) - (4,095,656) Changes of assumptions (1,190,489) - (1,190,489) Contributions from the employer - 1,245,311 (1,245,311) Contributions from employees - - - Net investment income, net of administrative expense 1,243,256 (1,243,256) Benefit payments, including refunds of employee
contributions (1,237,894) (1,237,894) - Administrative expense - (9,128) 9,128 Net Changes during July 1, 2020 to June 30, 2021 (4,126,022) 1,241,545 (5,367,567) Balance at June 30, 2021 (Measurement Date) 23,853,709$ 5,762,935 $ 18,090,774 $ Increase (Decrease)
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
104
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
C. Changes in Net OPEB Liability (Continued)
Sensitivity of the Net OPEB Liability to Changes in Discount Rate
The following presents the net OPEB liability of the City , as well as what the City’s net OPEB liability would be if it was calculated using a discount rate that is 1-percen tage point lower (5.25 percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:
Discount Rate Current Discount Discount Rate
- 1% (5.25%) Rate (6.25%) + 1% (7.25%)
21,217,140$ 18,090,774 $ 15,506,932 $ Plan's Net OPE B L iability/(Asset)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City , as well as what the City’s net OPEB liability would be if it was calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage-point higher than the current healthcare cost trend rates:
1% Decrease Current Rate 1% Increase
15,278,221$ 18,090,774 $ 21,556,187 $ Plan's Net OPE B L iability/(Asset)
D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expenses of $563,030. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from following sources:
Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 1,288,357$ - $ Difference between expected and actual experience - (3,965,569) Changes of assumptions - (1,370,514) Net difference between projected and
actual earning on pension plan investments - (666,048) Total 1,288,357 $ (6,002,131) $
OPE B Plan
The $1,288,357 reported as deferred outflows of resources related to OPEB resulting from the City’s contribution sequent to the measurement date during the year ended June 30, 2022 will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2023.
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
105
Note 12 – Other Postemployment Benefits (“OPEB”) (Continued)
D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
Other amounts reported as deferred inflows of resources re lated to OPEB will be rec ognized in future OPEB expense as follow:
Deferred Outflows
M easurement Period /(Inflows)
Ending June 30 of Resources
2022 (1,513,936)
2023 (1,504,638)
2024 (1,300,265)
2025 (1,202,737)
2026 (480,555)
Thereafter -
(6,002,131)$
Note 13 – Net Investment in Capital Assets
The net investment in capital assets for the governmental activities, business-type activities is calculated as follows:
Governmental Business-Type
Activities Activities
Total capital assets, net 188,829,119$ 20,687,875$
Unamortized loss on defeasance of debt 48,859 223,043 Unspent capital debt proceeds 29,802,605 19,804,535 Capital related debt (77,460,970) (45,375,127)
Net investment in capital assets 141,219,613$ (4,659,674)$
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City of Lynwood
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
106
Note 14 – Fund Balance Classifications
Fund balances for the governmental funds at June 30, 2022 consisted of the following:
Housing Authority Landscape American Rescue Nonmajor
Special Revenue M aintenance Special Plan Special Governmental General Fund Revenue Fund Revenue Fund Funds Total
Nonspendable:
Prepaid items 16,927 $ - $ - $ - $ - $ 16,927$ Restricted:
Public safety - - - - 358,156 358,156 Public works 1,007,345 - - - 13,854,998 14,862,343 Community
development - 30,283,041 - - 5,149,556 35,432,597 Retirement - - - - 1,853,599 1,853,599 Capital projects - - - - 31,726,565 31,726,565 Debt service - - - - 3,805,664 3,805,664 Subtotal 1,007,345 30,283,041 - - 56,748,538 88,038,924 Committed:
Rainy day fund 3,042,373 - - - - 3,042,373 OPEB 1,000,000 - - - - 1,000,000 Cannabis cultivation - - - - 791,529 791,529 Subtotal 4,042,373 - - - 791,529 4,833,902 Assigned:
ARPA 9,210,186 - - - - 9,210,186 Lynwood Park Improvement 10,500,000 - - - - 10,500,000 Refuse 1,873,286 - - - - 1,873,286 Street Maintenance 250,000 - - - - 250,000 Landscape shortfall 4,504,537 - - - - 4,504,537 Vehicle & Equipment
M aintenance/ Replacement shortfall 1,132,422 - - - - 1,132,422 Subtotal 27,470,431 - - - - 27,470,431 Unassigned 208,510 - (4,504,537) - (1,753,619) (6,049,646) Total 32,745,586$ 30,283,041$ (4,504,537)$ -$ 55,786,448$ 114,310,538$
The Budget Stabilization “Rainy day fund” is to be funded by an automatic depos it/transfer of 10 percent of general tax revenues each fiscal year by the transactions and use tax-Measure PS. For Fiscal Year 2021-22, the City deposited $727,175 into “Rainy day fund”.
Note 15 – Deferred Compensation Plan
The City offers a deferred compensation plan (the “Plan” ), created in accordance with the Internal Revenue Code Section 457, to its employees. Amounts deferred may not be paid to the employee during employment with the City, except for a catastrophic circumstance creating an undue financial hardship for the employee. The Plan is administered by an independent financial institution that has fiduciary responsibilities over the Plan assets. Consistent with the amended IRC Section 457, which took effect on January 1, 1997, the City no longer reports the Plan assets and liabilities on its financial statements.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
107
Note 16 – Commitments and Contingencies
There are other claims against the former Lynwood Redevel opment Agency which have be en denied and referred to the Lynwood Redevelopment Agency’s insurance carrier. The Successor Agency believes that none of these claims will exceed insurance coverage.
Under the terms of federal, county, and state grants, periodic audits are required and certain costs may be questioned as not appropriate expenditures under the terms of the grants. Such audits could lead to reimbursements to the grantor agencies. If expenditures were disallowed, the City believes such disallowances, if any, would be immaterial.
The City is a defendant in certain legal claims and actions arising from the normal course of operations. In the opinion of management and legal counsel, such claims and actions will not have a material adverse effect on the City’s financial position.
Note 17 – Prior Period Adjustments
Following prior period adjustments were made at the July 1, 2021:
Housing Authority
Governmental General Special Revenue Business-Type Total Primary Activities Fund Fund Activities Government
Net position/fund balance at July 1, 2021 157,173,400$ 10,703,773$ 27,441,417 $ 4,692,709$ 161,866,109$ Capital assets correction (4,241,879) - - - (4,241,879) Notes and loans receivable 1,493,246 - 1,493,246 - 1,493,246 Capital assets - intangible assets 421,358 - - 6,440 427,798 Lease payable (421,358) - - (6,440) (427,798) Reclass refuse fund - 2,097,755 - - - Reclass the transportation
into governmental activities 2,135 - - (2,135) - Net position/fund balance at July 1, 2021, as restate d 154,426,902$ 12,801,528$ 28,934,663 $ 4,690,574$ 159,117,476$ Net Position / Fund Balance
Funds
G overnm ental
At July 1, 2021, Refuse Special Revenue Fund was rolled to the General Fund, which resulting in restating the General Fund beginning fund balance from $10,703,773 to $12,801,528.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022
108
Note 18 – Subsequent Events
On November 9, 2022 the Successor Agency to the Lynwood Redevelopment Agency issued its 2022 Tax Allocation Refunding Bonds (Federally Taxable) in the amount of $1 0,275,000 to refund all outstanding Tax Allocation Bond issues of both the former Lynwood Redevelopment Agency and the Successor Agency, specifically:
2011 Tax Allocation Bonds,
Series A 12,980,000 $
2011 Tax Allocation Bonds,
Series B 3,810,000
2013 Tax Allocation Refunding Bonds,
Project Area A 4,710,000
2013 Tax Allocation Refunding Bonds,
Alameda Project Area 170,000
Successor Agency used a combination of prior unexpended bond proceeds, prior reserve funds, and proceeds from the 2022 Tax Allocation Refunding Bonds to fully redeem the Prior Bonds. The Successor Agency retained a total of $6,307,812 in unspent proceeds from the 2011 Series A bonds, of which $901,116 is eligible to be spent on current projects now with the remaining $5,406,696 to become eligible for expenditure once th e Successor Agency files its Last and Final Recognized Obligation Payment Schedule.
Interest on the bonds will be payable semiannually on March 1 and September 1 of each year, commencing March 1, 2023, and at rate from 5.090% to 5.900%. Principal on the bonds commences on March 1, 2023 and matures on September 1, 2031.
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REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
109
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110
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 197 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 31,455,366$ 33,184,952$ 36,016,992$ 2,832,040$ Licenses and permits 805,100 906,784 1,054,973 148,189 Fines, forfeitures and penalties 918,500 918,500 1,705,168 786,668 Use of money and property 385,086 385,086 (72,694) (457,780) Intergovernmental revenues 149,929 149,929 3,584,733 3,434,804 Charges for services 1,958,345 1,958,345 1,731,034 (227,311) Miscellaneous 740,850 740,850 525,675 (215,175) Total revenues 36,413,176 38,244,446 44,545,881 6,301,435 EXPENDITURES:
Current:
General government:
City Council 237,237 267,557 187,563 79,994
City Clerk 261,404 261,404 183,859 77,545
City Treasurer 172,056 176,456 135,871 40,585 City Manager 1,648,041 1,743,041 838,425 904,616 Finance & administration 513,792 513,792 859,178 (345,386) Human resources 787,478 787,478 348,922 438,556 Technology & media support 539,826 539,826 407,551 132,275 Total general government 4,159,834 4,289,554 2,961,369 1,328,185 Public safety - Police and fire 20,541,020 20,586,020 13,886,349 6,699,671 Public works:
Water and sanitation 460,467 460,467 449,156 11,311
Development services 2,789,313 2,980,789 2,478,446 502,343 Total public works 3,249,780 3,441,256 2,927,602 513,654 Community development 4,743,724 5,023,371 4,146,754 876,617 Parks and recreation 3,423,726 3,651,976 3,056,331 595,645 Capital outlay - - 16,005 (16,005)
Debt service:
Principal retirement - - 12,250 (12,250) Interest and fiscal charges - - 170 (170) Total expenditures 36,118,084 36,992,177 27,006,830 9,985,347
EXCESS OF REVENUES OVER
EXPENDITURES 295,092 1,252,269 17,539,051 16,286,782 OTHER FINANCING SOURCES (USES):
Issuance of debt - - 16,004 16,004 Proceeds from sale of land - - 2,000,000 2,000,000 Transfers in 1,008,190 1,008,190 3,364,731 2,356,541 Transfers out (3,138,612) (2,968,612) (2,975,728) (7,116) Total other financing sources (uses) (2,130,422) (1,960,422) 2,405,007 4,365,429 NET CHANGE IN FUND BALANCE (1,835,330)$ (708,153)$ 19,944,058 20,652,211$ FUND BALANCE:
Beginning of Year 12,801,528
End of Year 32,745,586$
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
City of Lynwood
For the Year Ended June 30, 2022
111
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 198 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property -$ -$ 5,026$ 5,026$ Intergovernmental 4,500,000 4,500,000 3,779,231 (720,769) Total revenues 4,500,000 4,500,000 3,784,257 (715,743) EXPENDITURES:
Current:
Community development 11,178,750 11,178,750 244,524 10,934,226 Debt service:
Principal retirement 1,575,000 1,575,000 1,575,000 - Interest and fiscal charges 616,355 616,355 616,355 - Total expenditures 13,370,105 13,370,105 2,435,879 10,934,226 NET CHANGE IN FUND BALANCE (8,870,105)$ (8,870,105)$ 1,348,378 10,218,483$ FUND BALANCE:
Beginning of year 28,934,663
End of year 30,283,041$
City of Lynwood
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - Housing Authority Special Revenue Fund For the Year Ended June 30, 2022
112
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 199 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 1,250,985$ 1,250,985$ 1,074,219$ (176,766)$ Use of money and property 9,167 9,167 7,299 (1,868) Total revenues 1,260,152 1,260,152 1,081,518 (178,634) EXPENDITURES:
Current:
Public works 2,490,279 2,665,631 2,193,255 472,376 Total expenditures 2,490,279 2,665,631 2,193,255 472,376 NET CHANGE IN FUND BALANCE (1,230,127)$ (1,405,479)$ (1,111,737) 293,742$ FUND BALANCE (DEFICIT):
Beginning of year (3,392,800)
End of year (4,504,537)$
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Landscape Maintenance Special Revenue Fund For the Year Ended June 30, 2022
113
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 200 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental 12,200,000$ 12,200,000$ 6,730,140$ (5,469,860)$ Total revenues 12,200,000 12,200,000 6,730,140 (5,469,860) EXPENDITURES:
Current:
General government - 930,000 6,730,140 (5,800,140) Total expenditures - 930,000 6,730,140 (5,800,140)
EXCESS OF REVENUES OVER
EXPENDITURES 12,200,000 11,270,000 - (11,270,000) OTHER FINANCING USES:
Transfers out - (2,122,084) - 2,122,084 Total other financing uses - (2,122,084) - 2,122,084 NET CHANGE IN FUND BALANCE 12,200,000$ 9,147,916$ - (9,147,916)$ FUND BALANCE:
Beginning of year -
End of year -$
For the Year Ended June 30, 2022
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - American Rescue Plan Special Revenue Fund 114
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 201 of 582 The City’s basis of budgeting for its governmental fund groups (General Fund, Special Revenue Funds, and Capital Projects Funds) is modified accrual.
Revenues are budgeted according to when they are both measurable and available. Revenues are considered to be available when they are collected within the current period, or soon enough thereafter to pay liabilities of the current period. The City considers property taxes, franchise taxes, licenses, and interest associated with the current fiscal year period susceptible to accrual if they are collected within 60 days of the end of the current fiscal year.
Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received. Expenditures are budgeted according to when the liability is incurred, regardless of the timing of related cash flow. The exceptions are debt service, compensated absences, claims and judgments, which are budgeted as expenditures according to when the payments are due.
The following procedures establish the budgetary data reflected in the financial statements:
The City Council approves two year's budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council. Supplemental appropriations, where required during the period, are also approved by the City Council. Budget transfers that affect the total appropriations for any fund require City Council approval. Budget transfers within a budget code with no change in appropriation are approved by the City Manager only and do not require approval by the City Council.
A budget code could be a program or a division of a department or a department. In most cases, expenditures may not legally exceed appropriations at the budget code level for the General fund, and fund level for Special Revenue, Capital Projects, and Debt Service Funds.
Legally adopted budgets for all governmental funds are established on a basis consistent with accounting principles generally accepted in the United States of America. At fiscal year-end, all operating budget appropriations lapse with the exception of encumbered and continuing appropriations. During the fiscal year, several supplementary appropriations were necessary.
Budgets are adopted for all general, special revenue, capital projects, and debt service funds except for 2020 LRB Capital Projects Fund, HUD 108 Loan Special Revenue Fund, Other Grants Special Revenue Fund, Prop 1B Grant Special Revenue Fund, CalHome State Grant Special Revenue Fund, Prop 84 Park Grant Special Revenue Fund, TEA Grant Special Revenue Fund, LEAP Special Revenue Fund and 2020 Lease Revenue Bonds Capital Projects Fund.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
Budget and Budgetary Accounting
115
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 202 of 582 Measurement period 2013-141
2014-15 2015-16 2016-17 2017-18
Total pension liability
Service cost 1,448,697 $ 1,328,607 $ 1,272,859 $ 1,397,160 $ 973,785 $ Interest 5,995,447 6,236,738 6,391,825 6,546,957 6,500,059 Changes of benefit terms - - - - - Changes of assumptions - (1,617,186) - 5,791,209 (313,095) Differences between expected and actual experience - (690,066) (1,879,241) (1,600,845) (3,727,458) Benefit payments, including refunds of employee contributions (3,327,245) (3,653,076) (3,608,844) (4,200,397) (4,495,204) Net change in total pension liability 4,116,899 1,605,017 2,176,599 7,934,084 (1,061,913) Total pension liability - beginning 80,878,575 84,995,474 86,600,491 88,777,090 96,711,174 Total pension liability - ending (a) 84,995,474$ 86,600,491$ 88,777,090$ 96,711,174$ 95,649,261$ Pension fiduciary net position
Contributions - employer 1,823,737$ 1,726,042$ 1,908,780$ 1,823,634$ 2,307,111$ Contributions - employee 601,654 609,517 599,040 486,971 485,889 Net investment income 9,381,042 1,381,816 314,977 6,896,918 5,604,478 Benefit payments, including refunds of employee contributions (3,327,245) (3,653,076) (3,608,844) (4,200,397) (4,495,204) Plan to plan resource movement 16,618 2,328 2,424 (164) Administrative expense - (71,182) (38,522) (92,109) (104,878) Other Miscellaneous Income/(Expense)
2 - - - - (199,165) Net change in plan fiduciary net position 8,479,188 9,735 (822,241) 4,917,441 3,598,067 Plan fiduciary net position - beginning3
54,719,644 63,198,832 63,208,567 62,386,326 67,303,767 Plan fiduciary net position - ending (b) 63,198,832$ 63,208,567$ 62,386,326$ 67,303,767$ 70,901,834$ Plan net pension liability - ending (a) - (b) 21,796,642$ 23,391,924$ 26,390,764$ 29,407,407$ 24,747,427$ Plan fiduciary net position as a percentage 74.36% 72.99% 70.27% 69.59% 74.13% of the total pension liability
Covered payroll4
7,884,919$ 7,571,271 $ 7,437,528 $ 7,205,569 $ 5,230,341 $ Plan net pension liability as a percentage of covered payroll 276.43% 308.96% 354.83% 408.12% 473.15% Notes to Schedule:
4 Includes one year’s payroll growth using 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.
Benefit Changes: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
Last Ten Fiscal Years1
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California’s agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to 3 Includes any beginning of year adjustment.
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 116
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 203 of 582 Measurement period 2018-19 2019-20 2020-2021
Total pension liability
Service cost 954,743$ 1,472,116 $ 1,526,500 $ Interest 6,765,828 7,485,092 7,857,531
Changes of benefit terms - - - Changes of assumptions - - - Differences between expected and actual experience 857,786 6,897,979 1,142,164 Benefit payments, including refunds of employee contributions (4,714,906) (4,920,285) (4,914,961) Net change in total pension liability 3,863,451 10,934,902 5,611,234 Total pension liability - beginning 95,649,261 99,512,712 110,447,614 Total pension liability - ending (a) 99,512,712$ 110,447,614$ 116,058,848$ Pension fiduciary net position
Contributions - employer 2,966,212$ 3,354,347$ 3,532,629$ Contributions - employee 716,937 690,604 622,025 Net investment income 4,602,755 3,678,510 17,149,454 Benefit payments, including refunds of employee contributions (4,714,906) (4,920,285) (4,914,961) Plan to plan resource movement - - - Administrative expense (50,597) (104,917) (77,039) Other Miscellaneous Income/(Expense)
1 164 - -
Net change in plan fiduciary net position 3,520,565 2,698,259 16,312,108 Plan fiduciary net position - beginning2
70,901,834 74,422,399 77,120,658
Plan fiduciary net position - ending (b) 74,422,399$ 77,120,658$ 93,432,766$ Plan net pension liability - ending (a) - (b) 25,090,313$ 33,326,956$ 22,626,082$ Plan fiduciary net position as a percentage 74.79% 69.83% 80.50% of the total pension liability
Covered payroll3
5,284,456$ 8,312,345 $ 8,717,876 $
Plan net pension liability as a percentage of covered payroll 474.79% 400.93% 259.54% City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan 117
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 204 of 582 Measurement Date June 30, 20141 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 City's proportion of the net pension liability/(asset) 0.08548% 0.07871% 0.07695% 0.07487% 0.07801% City's proportionate Share of 5,318,857 $ 5,402,562 $ 6,658,316 $ 7,424,692 $ 7,517,090 $ the net pension liability/(asset)
City's Covered payroll2 - - - - - Proportionate Share of the net pension liability/(asset) as percentage of covered payroll N/A N/A N/A N/A N/A
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 79.01% 77.01% 71.71% 68.08% 66.36% 1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 The plan has no active members, and therefore, no covered payroll.
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of the City’s Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2022
Last Ten Fiscal Years1
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 118
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 205 of 582 Measurement Date June 30, 2019 June 30, 2020 June 30, 2021 City's proportion of the net pension liability/(asset) 0.07535% 0.07257% 0.11134% City's proportionate Share of 7,721,641$ 7,896,343$ 6,021,824$ the net pension liability/(asset)
City's Covered payroll2 - - - Proportionate Share of the net pension liability/(asset) as percentage of covered payroll N/A N/A N/A
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 63.97% 63.97% 63.97% For the Year Ended June 30, 2022
Schedule of the City’s Proportionate Share of the Net Pension Liability (Continued) Required Supplementary Information (Unaudited) (Continued) City of Lynwood
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety Plan 119
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 206 of 582 Fiscal Year 2013-141 2014-15 2015-16 2016-17 2017-18 2018-19 Actuarially determined contribution 1,823,737$ 1,726,042 $ 1,908,780 $ 1,823,634 $ 2,307,111 $ 2,966,212 $ Contributions in relation to the
actuarially determined contribution2 (1,823,737) (1,726,042) (1,908,780) (1,823,634) (2,307,111) (2,966,212) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ Covered payroll3 7,884,919$ 7,571,271 $ 7,437,528 $ 7,205,569 $ 5,230,341 $ 5,284,456 $ Contributions as a percentage of
covered payroll
3 23.13% 22.80% 25.66% 25.31% 44.11% 56.13%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Payroll Growth
Investment rate of return
Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pensions
For the Year Ended June 30, 2022
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-19; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2018 funding valuation report.
The probabilities of retirement are based on the 2017 CalPERS Experience study for the period from 1997 to 2015
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Last Ten Fiscal Years1
7% net of pension plan investment expenses; includes Inflation.
2.75%
Varies by entry age and service
2.50%
Market value
Level percentage of payroll
Entry Age Normal Cost Method
120
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 207 of 582 Fiscal Year 2019-20 2020-21 2021-22
Actuarially determined contribution 3,354,347 $ 3,532,629 $ 4,284,543 $ Contributions in relation to the
actuarially determined contribution2 (3,354,347) (3,532,629) (4,284,543) Contribution deficiency (excess) - $ - $ - $ Covered payroll3 8,312,345$ 8,717,876 $ 8,957,618 $ Contributions as a percentage of
covered payroll
3 40.35% 40.52% 47.83%
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Miscellaneous 121
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 208 of 582 Fiscal Year 2013-141 2014-15 2015-16 2016-17 2017-18 2018-19 Actuarially determined contribution 927,126 $ - $ - $ - $ - $ - $ Contributions in relation to the
actuarially determined contribution (927,126) (238,588) (264,420) (319,342) (552,030) (673,381) Contribution deficiency (excess) -$ (238,588)$ (264,420)$ (319,342)$ (552,030)$ (673,381)$ Covered payroll2 N/A N/A N/A N/A N/A N/A
Contributions as a percentage of
covered payroll2 N/A N/A N/A N/A N/A N/A
Notes to Schedule:
Changes of Assumptions: In 2020 and 2021, there were no changes of assumptions. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pensions
For the Year Ended June 30, 2022
California Public Employees' Retirement System Defined Pension Plan - Safety Last Ten Fiscal Years1
1 Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14. Additional years of information will be displayed as it becomes available.
Change in Benefit Terms: There were no change in benefit term. 2 The plan has no active members, and therefore, no covered payroll. 122
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 209 of 582 Fiscal Year 2019-20 2020-21 2021-2022
Actuarially determined contribution - $ - $ - $ Contributions in relation to the
actuarially determined contribution (659,283) (741,891) (733,353) Contribution deficiency (excess) (659,283) $ (741,891) $ (733,353) $ Covered payroll2 N/A N/A N/A
Contributions as a percentage of
covered payroll2 N/A N/A N/A
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Plan Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System Defined Pension Plan - Safety 123
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 210 of 582 This page intentionally left blank.
124
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 211 of 582 Measurement period 2016-171 2017-18 2018-19 2019-20 2020-21 Total OPEB liability
Service cost 589,190 $ 606,866 $ 625,072 $ 509,557 $ 516,313 $ Interest 1,690,724 1,776,215 1,862,217 1,837,851 1,881,704 Changes of benefit terms - - - - - Differences between expected and actual experience - - (1,416,202) - (4,095,656) Changes of assumptions - - (167,109) (503,935) (1,190,489) Benefit payments, including refunds
of employee contributions (943,414) (1,118,695) (1,135,668) (1,163,219) (1,237,894) Net change in total OPEB liability 1,336,500 1,264,386 (231,690) 680,254 (4,126,022) Total OPEB liability - beginning 24,930,281 26,266,781 27,531,167 27,299,477 27,979,731 Total OPEB liability - ending (a) 26,266,781$ 27,531,167 $ 27,299,477 $ 27,979,731 $ 23,853,709 $ OPEB fiduciary net position
Contributions - employer 1,445,958 $ 1,121,366 $ 1,135,668 $ 1,170,498 $ 1,245,311 $ Contributions - employee - - - Net investment income 337,328 304,026 254,087 154,409 1,243,256 Benefit payments, including refunds of
employee contributions (943,414) (1,118,695) (1,135,668) (1,163,219) (1,237,894) Plan to plan resource movement
Administrative expense (4,227) (9,760) (882) (9,414) (9,128) Net change in plan fiduciary net position 835,645 296,937 253,205 152,274 1,241,545 Plan fiduciary net position - beginning 2,983,329 3,818,974 4,115,911 4,369,116 4,521,390 Plan fiduciary net position - ending (b) 3,818,974$ 4,115,911$ 4,369,116$ 4,521,390$ 5,762,935$
Plan net OPEB liability - ending (a) - (b) 22,447,807$ 23,415,256$ 22,930,361$ 23,458,341$ 18,090,774$ Plan fiduciary net position as a percentage 14.54% 14.95% 16.00% 16.16% 24.16% of the total OPEB liability
Covered-employee payroll 3
5,992,698$ 8,848,978 $ 9,974,285 $ 9,524,565 $ 8,967,312 $ Plan net OPEB liability as a percentage of
covered-employee payroll 374.59% 264.61% 229.89% 246.29% 201.74% Notes to Schedule:
1 Historical information is presented only for measurement periods after GASB 75 implementation in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available.
Benefit Changes: There were no benefit changes.
Changes of Assumptions: In 2021, the accounting discount changes from Select & ultimate discount rates based on funding policy to 6.25 percent.
In 2019 and 2020, the accounting discount changes from Select & ultimate discount rates based on funding policy to 6.75 percent.
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years1
Other Postemployment Benefit Plan
125
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 212 of 582 Fiscal Year 2016-171 2017-18 2018-19 2019-20 2020-21
Actuarially determined contribution 2,336,000 $ 2,399,000 $ 2,482,000 $ 2,583,000 $ 2,268,000 $ Contributions in relation to the actuarially
determined contribution2 (1,445,958) (1,121,366) (1,135,668) (1,170,498) (1,245,311) Contribution deficiency (excess) 890,042$ 1,277,634$ 1,346,332$ 1,412,502$ 1,022,689$ Covered-employee payroll 5,992,698$ 8,848,978$ 9,974,285$ 9,524,565$ 8,967,312$ Contributions as a percentage of covered
payroll 24.1% 12.7% 11.4% 12.3% 13.9%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation 2.75%
Medical Trend
Mortality
Mortality Improvement Mortality projected fully generational with Scale MP-2019 19-year fixed period for 2021/22
CalPERS 1997-2015 experience study
Entry Age Normal, Level Percentage of Payroll
Level % of pay
Investment gains and losses spread over 5-year rolling period
6.75%
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2020-21 were derived from the June 30, 2019 funding valuation report. 1 Historical information is presented only for measurement periods after GASB 75 implementation in fiscal year of 2017-18 (measurement period of 2016-17). Additional years of information will be displayed as it becomes available.
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Other Postemployment Benefits Plan For the Year Ended June 30, 2022
Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076; Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076
Last Ten Fiscal Years
Other Postemployment Benefit Plan
126
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 213 of 582 Fiscal Year 2021-22
Actuarially determined contribution 2,310,000$
Contributions in relation to the actuarially determined contribution2 (1,288,357)
Contribution deficiency (excess) 1,021,643$
Covered-employee payroll 10,179,608$
Contributions as a percentage of covered payroll 12.7%
City of Lynwood
Required Supplementary Information (Unaudited) (Continued) Schedule of Contributions - Other Postemployment Benefits Plan (Continued) For the Year Ended June 30, 2022
Other Postemployment Benefit Plan
Last Ten Fiscal Years
127
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 214 of 582 This page intentionally left blank.
128
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 215 of 582
SUPPLEMENTARY INFORMATION
129
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 216 of 582 Public Art Fund - This fund accounts for the fees collected from new developments in-lieu of the developer placing an art piece. Funds will be used for the placement of public art.
SB 821 Fund - This fund accounts for revenue received from the State of California for the development of bicycle and pedestrian facilities.
Prop A Fund - This fund is used to record the City's portion of sales tax dedicated to transportation programs. These programs include the Dial-A-Taxi service for senior citizens and the handicapped, the trolley system, MTA bus fare discounts, and transit route projects/programs.
Safe Clean Water Fund - This fund accounts for funds received from the Los Angeles County Flood Control District for share of Measure W, the Safe, Clean Water Program. This fund is used to improve water quality to ensure safe and clean water.
Litter Abatement Fund - This fund accounts for Environmental Service Fees and Street Sweeping Charges for the City.
This revenue funds a portion of the cost for the Right of Way Division and Stormwater Division.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds are used to account for taxes and other revenues set aside in accordance with the law or administrative regulations for a specific purpose.
Impact Fees Fund - This fund accounts for the fees collected from new developments, which will be used to construct public infrastructure.
Measure R Fund - These funds are used to account for revenues and monies spent on critical transit and highway projects.
Air Quality Improvement Fund - This fund accounts for AB 2766 revenues collected by the State of California on motor vehicle license registration fees. Revenues are used solely for the purpose of reducing air pollution from mobile sources.
State COPS Program Fund - This fund accounts for the California statewide sales and use tax allocated by the State for local public safety services.
Sheriff Drug Seizure Fund - This fund accounts for revenue received from the Lynwood Sheriff Department's drug confiscations. These monies are used to fund various law enforcement and public safety programs.
Lighting Maintenance Fund - This is a special assessment fund whereby revenue is received from the County of Los Angeles for which an assessment has been charged against property owners' front footage. Monies in this fund are used to provide services such as tree maintenance, park maintenance, and capital improvements.
Nonmajor Special Revenue Funds:
HUD Home Program Fund - This fund accounts for revenue received from the U.S. Department of Housing and Urban Development and the State of California to provide financial assistance for affordable housing programs.
Prop C Fund - This fund accounts for City's portion of sales tax dedicated to transportation programs.
RMC Grant Fund - This fund accounts for grant received from the State of California, the San Gabriel and Lower LA Riverside and Mountains Conservancy for the improvement of water quality, supply and infrastructure.
Retirement Fund - This fund accounts for revenue received from property tax levy to cover retirement costs.
Gas Tax Fund - This fund accounts for Gas Tax revenue received from the State of California to cover costs of street maintenance and improvements.
130
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 217 of 582 LA County Park Maintenance Grant Fund - This fund accounts for grant funds allocated by the County of Los Angeles for park landscape and maintenance.
Other Grants Fund - This fund accounts for various grant funds received by the City not included in the other funds.
Used Oil Recycling Grant Fund - This fund accounts for grants received by the City of Lynwood from the California Integrated Waste Management Board to cover costs associated with local or regional used oil collection programs.
Dupont Lead Safety Grant Fund - This fund accounts for funds received to assist in the elimination of lead based paint and materials.
NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Special Revenue Funds (Continued):
Housing Community Development (HUD) Fund - This fund accounts for revenue received from the Federal Government's Community Development Block Grant Program. The City utilizes this grant to provide community programs such as housing rehabilitation loans, code enforcement, and capital improvement projects.
Beverage Container Recycling Grant Fund - This fund accounts for grants received from the State of California for the purpose of implementing a Beverage Container Recycling Program.
Business Improvement District Fund - This fund accounts for special tax assessments imposed on businesses in the District to promote various activities within the District.
HUD 108 Loan Fund - This fund accounts for loan monies received from HUD to assist in funding the construction of a new community center and street improvements.
Measure M Fund - This fund is used to record the City’s share of Los Angeles County 0.5 percent sales tax for traffic improvement plan.
Prop 1B Grant Fund - This fund accounts for funds received from the State for street related projects.
Cannabis Cultivation Fund - This fund accounts for required licenses, charges and zoning verification fee related to medical cannabis commercial facilities.
CalHome State Grant Fund - This fund accounts for grants received from California Department of Housing and Community development to assist Home program in the City.
Justice Assistance Fund - This fund accounts fo
r the financial assistance received from the U.S. Department of Justice to be used for supporting a broad range of activities to prevent and control crime and to improve the criminal justice system.
Enterprise Zone Program Fund - This fund accounts for funds to be used for economic development and to promote job creation and significant private investment that will assist economically distressed areas of the City.
Prop 84 Park Grant Fund - This fund accounts for grant funds to be used for the development of community center and public parks.
TEA Grant Fund - This fund accounts for amounts due to the City for monies advances to assist in transportation improvement projects.
SB 1 Fund - This fund accounts for basic road maintenance, rehabilitation and critical safety needs on the local street and road system.
131
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 218 of 582 Measure R (Bans) Fund - This fund accounts for proceeds which are used to fund certain projects within the City (Street Improvements).
2012 Measure R Bond Proceeds Fund - Accounts for bond proceeds which are used to fund certain projects within the City (Street Improvements).
2017 Lease Revenue Bonds ("LRB")Fund - This fund accounts for bond proceeds which are used to fund 2019 public capital improvement project.
2020 Lease Revenue Bonds ("LRB") Fund - accounts for bond proceeds which are used to provide funds to finance working capital for the city's General Fund or other purposes as determined by the City.
Capital Projects Funds are used to account for bond resources used for the acquisition and construction of capital facilities by the City, except those financed by Proprietary Funds.
2002 HUD Section 108 Loan Fund - This fund accounts for the proceeds of the $7 million loan the City received from HUD to be used for capital projects within the City.
2019 Lease Revenue Bonds ("LRB") Fund - accounts for bond proceeds which are used to fund certain park improvements Measure M Bond Fund - accounts for bond proceeds which are used to fund certain transportation projects of the City.
Capital Improvement Fund - accounts for the financial resources used for the acquisition and construction of the City's capital projects. These improvements to the City's infrastructure, housing, and redevelopment projects.
Nonmajor Capital Projects Funds:
NONMAJOR GOVERNMENTAL FUNDS
LEAP Grant - The State of California, Department of Housing and Community Development ("HCD") issued funds for LEAP Grant Programs to be used by a local government for the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance with the sixth cycle of Regional Housing Need Assessment ("RHNA").
Transportation Fund - Accounts for revenue received from Dial-A-Taxi fares and Prop "A" and Prop "C" transfers to cover the costs of transportation programs such as Dial-A-Taxi and Transportation Administration.
Nonmajor Special Revenue Funds (Continued):
ATP Grant - This fund accounts for grants received from State to encourage use and safety of non-motorized users (such as walking and biking) of transportation, to achieve greenhouse gas reduction goals, enhancing public health.
HSIP Fund - This fund accounts for federal-aid program pass through State of California. This fund is used for traffic signal improvements at various City's street, such as Imperial Highway, Atlantic Avenue, Alameda Street, and Martin Luther King Boulevard.
Urban Greening Fund - This fund accounts for the grant awarded by the California Natural Resources Agency under the Urban Greening Grant Program. The funds will be used to fund the Lynwood Urban Bicycle Trail. 132
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 219 of 582
NONMAJOR GOVERNMENTAL FUNDS
Nonmajor Debt Service Fund:
Debt Service Fund is used to account for the accumulation of resources for and the payment of the City's long-term debt, principal and interest.
City of Lynwood Debt Service Fund - This fund accounts for a debt service reserve held by a trustee as well as payment on all interest and principal on outstanding debt incurred by the City of Lynwood. 133
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 220 of 582 HUD
Home Program Prop C
Fund Fund RMC Grant Retirement Gas Tax
ASSETS
Cash and investments 110,562$ 1,784,349$ -$ 1,719,980$ 837,006$ Receivables:
Accounts and taxes, net - - - - - Interest - 426 - - 152 Intergovernmental 4,074 - 380,828 171,519 127,036 Notes and loans 2,657,557 - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale 497,694 - - - - Total assets 3,269,887$ 1,784,775$ 380,828$ 1,891,499$ 964,194$ Liabilities:
Accounts payable 253$ -$ -$ -$ 46,688$ Payroll liabilities - 231 - 37,900 4,807 Retention payable - - - - - Deposits - - - - - Due to other funds - - 507,978 - 296,408 Total liabilities 253 231 507,978 37,900 347,903 Deferred Inflows of Resources:
Unavailable revenues - - 380,828 - - Total deferred inflows of resources -
- 380,828 - - Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works - 1,784,544 - - 616,291 Community development 3,269,634 - - - - Retirement - - - 1,853,599 - Capital projects - - - - - Debt service - - - - - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - (507,978) - - Total fund balances (deficit) 3,269,634 1,784,544 (507,978) 1,853,599 616,291 Total liabilities, deferred inflows of
resources and fund balances 3,269,887$ 1,784,775$ 380,828$ 1,891,499$ 964,194$ (Continued)
City of Lynwood
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
134
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 221 of 582 Air State
Quality COPS
SB 821 Prop A Measure R Improvement Program
ASSETS
Cash and investments 1,060$ 4,120,433$ 1,568,172$ 402,749$ 376,672$ Receivables:
Accounts and taxes, net - - - - - Interest - 993 430 80 78 Intergovernmental - - - - - Notes and loans - - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale - - - - - Total assets 1,060$ 4,121,426$ 1,568,602$ 402,829$ 376,750$ Liabilities:
Accounts payable -$ -$ 782$ -$ 18,594$ Payroll liabilities - 240 6,923 - - Retention payable - - - - - Deposits - - - - - Due to other funds - - - - - Total liabilities - 240 7,705 - 18,594 Deferred Inflows of Resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances (Deficit):
Restricted for:
Public safety - - - - 358,156 Public works 1,060 4,121,186 1,560,897 402,829 - Community development - - - - - Retirement - - - - - Capital projects - - - - - Debt service - - - - - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - - - - Total fund balances (deficit) 1,060 4,121,186 1,560,897 402,829 358,156 Total liabilities, deferred inflows of
resources and fund balances 1,060$ 4,121,426$ 1,568,602$ 402,829$ 376,750$ (Continued)
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
135
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 222 of 582 Sheriff
Drug Lighting Safe Clean Impact Public
Seizure Maintenance Water Fees Art
ASSETS
Cash and investments -$ 1,201,482$ 2,304,890$ 2,179,941$ 1,179,687$ Receivables:
Accounts and taxes, net - 1,500 - - - Interest - 246 - 434 236 Intergovernmental - 35,349 - - - Notes and loans - - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale - - - - - Total assets -$ 1,238,577$ 2,304,890$ 2,180,375$ 1,179,923$ Liabilities:
Accounts payable -$ 38,031$ 26,477$ -$ -$ Payroll liabilities - 2,837 214 - - Retention payable - - - - - Deposits - - - - - Due to other funds - - - - - Total liabilities - 40,868 26,691 - - Deferred Inflows of Resources:
Unavailable revenues - 500 - - - Total deferred inflows of resources - 500 - - - Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works - 1,197,209 2,278,199 - - Community development - - - - 1,179,923 Retirement - - - - - Capital projects - - - 2,180,375 - Debt service - - - - - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - - - - Total fund balances (deficit) - 1,197,209 2,278,199 2,180,375 1,179,923 Total liabilities, deferred inflows of
resources and fund balances -$ 1,238,577$ 2,304,890$ 2,180,375$ 1,179,923$ (Continued)
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
136
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 223 of 582 Housing Beverage
HUD Community Business Container
Litter 108 Development Improvement Recycling
Abatement Loan (HUD) District Grant
ASSETS
Cash and investments 171,264$ -$ 63,261$ 371,236$ 211,263$ Receivables:
Accounts and taxes, net 68,473 - - 1,308 - Interest - - - 76 40 Intergovernmental - - 284,060 - - Notes and loans - - 539,478 - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale - - - - - Total assets 239,737$ -$ 886,799$ 372,620$ 211,303$ Liabilities:
Accounts payable 8,190$ -$ 75,619$ 60,922$ -$ Payroll liabilities 5,720 - 11,319 - - Retention payable - - - - - Deposits - - - - - Due to other funds - - 696,828 - - Total liabilities 13,910 - 783,766 60,922 - Deferred Inflows of Resources:
Unavailable revenues - - 193,566 - - Total deferred inflows of resources - - 193,566 - - Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works 225,827 - - - - Community development - - - 311,698 211,303 Retirement - - - - - Capital projects - - - - - Debt service - - - - - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - (90,533) - - Total fund balances (deficit) 225,827 - (90,533) 311,698 211,303 Total liabilities, deferred inflows of
resources and fund balances 239,737$ -$ 886,799$ 372,620$ 211,303$ (Continued)
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
137
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 224 of 582 LA County Dupont
Park Used Oil Lead
Maintenance Other Recycling Safety Prop 1B
Grant Grants Grant Grant Grant
ASSETS
Cash and investments 35,727$ -$ 4,520$ -$ -$ Receivables:
Accounts and taxes, net - - - - - Interest 7 - 1 - - Intergovernmental - - - - - Notes and loans - - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale - - - - - Total assets 35,734$ -$ 4,521$ -$ -$ Liabilities:
Accounts payable -$ -$ 8,421$ -$ -$ Payroll liabilities - - 94 - - Retention payable - - - - - Deposits - - - - - Due to other funds - - - - - Total liabilities - - 8,515 - - Deferred Inflows of Resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works 35,734 - - - - Community development - - - - - Retirement - - - - - Capital projects - - - - - Debt service - - - - - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - (3,994) - - Total fund balances (deficit) 35,734 - (3,994) - - Total liabilities, deferred inflows of
resources and fund balances 35,734$ -$ 4,521$ -$ -$ (Continued)
June 30, 2022
City of Lynwood
Nonmajor Governmental Funds
Combining Balance Sheet (Continued)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Special Revenue Funds
138
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 225 of 582 Enterprise CalHome
Justice Zone State Cannabis
Assistance Program Grant Cultivation Measure M
ASSETS
Cash and investments -$ 172,411$ 4,552$ 1,136,529$ 729,779$ Receivables:
Accounts and taxes, net - - - - - Interest - 35 - - 143 Intergovernmental - - - - - Notes and loans - - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale - - - - - Total assets -$ 172,446$ 4,552$ 1,136,529$ 729,922$ Liabilities:
Accounts payable -$ -$ -$ -$ -$ Payroll liabilities - - - - 143 Retention payable - - - - - Deposits - - - 345,000 - Due to other funds 30,997 - - - - Total liabilities 30,997 - - 345,000 143 Deferred Inflows of Resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - -
Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works - - - - 729,779 Community development - 172,446 4,552 - - Retirement - - - - - Capital projects - - - - - Debt service - - - - - Committed for:
Cannabis cultivation - - - 791,529 - Unassigned (deficit) (30,997) - - - - Total fund balances (deficit) (30,997) 172,446 4,552 791,529 729,779 Total liabilities, deferred inflows of
resources and fund balances -$ 172,446$ 4,552$ 1,136,529$ 729,922$ (Continued)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Special Revenue Funds
June 30, 2022
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
139
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 226 of 582 Prop 84
Park Grant HSIP
Fund TEA Grant SB1 ATP Grant Fund
ASSETS
Cash and investments -$ -$ 703,227$ -$ 4,770$ Receivables:
Accounts and taxes, net - - - - 7,588 Interest - - 218 - - Intergovernmental - - 238,642 - - Notes and loans - - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents - - - - - Land held for resale - - - - - Total assets -$ -$ 942,087$ -$ 12,358$ Liabilities:
Accounts payable -$ -$ 35,274$ -$ -$ Payroll liabilities - - 7,459 - - Retention Payable - - - - - Deposits - - - - - Due to other funds - - - - - Total liabilities - - 42,733 - - Deferred Inflows of Resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works - - 899,354 - - Community development - - - - - Retirement - - - - - Capital projects - - - - 12,358 Debt service - - - - - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - - - - Total fund balances (deficit) - - 899,354 - 12,358 Total liabilities, deferred inflows of
resources and fund balances -$ -$ 942,087$ -$ 12,358$ (Continued)
RESOURCES AND FUND BALANCES
LIABILITIES, DEFERRED INFLOWS OF
Special Revenue Funds
June 30, 2022
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
140
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 227 of 582 Capital
LEAP Urban Measure M Improvement
Grant Transportation Greening Bonds Projects
ASSETS
Cash and investments -$ 416,128$ -$ -$ 1,787,070$ Receivables:
Accounts and taxes, net 71,124 828 - - - Interest - - - - - Intergovernmental - - 481,741 - - Notes and loans - - - - - Due from other funds - - - - 1,575,179 Restricted assets:
Cash and investments with fiscal agents - - - 4,539,002 - Land held for resale - - - - - Total assets 71,124$ 416,956$ 481,741$ 4,539,002$ 3,362,249$ Liabilities:
Accounts payable -$ 413,488$ -$ -$ 2,396,618$ Payroll liabilities - 713 - - 2,635 Retention Payable - - - - 521,473 Deposits - - - - - Due to other funds 71,124 - 1,120,117 45,147 - Total liabilities 71,124 414,201 1,120,117 45,147 2,920,726 Deferred Inflows of Resources:
Unavailable revenues - 666 481,741 - - Total deferred inflows of resources - 666 481,741 - -
Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works - 2,089 - - - Community development - - - - - Retirement - - - - - Capital projects - - - 4,493,793 441,523 Debt service - - - 62 - Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - (1,120,117) - - Total fund balances (deficit) - 2,089 (1,120,117) 4,493,855 441,523 Total liabilities, deferred inflows of
resources and fund balances 71,124$ 416,956$ 481,741$ 4,539,002$ 3,362,249$ (Continued)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Special Revenue Funds Capital Projects Funds
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
141
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 228 of 582 2002 HUD 2012 Measure R
2019 2020 Section 108 Measure R Bond
LRB Capital LRB Loan (Bans) Proceeds
ASSETS
Cash and investments -$ -$ -$ -$ -$ Receivables:
Accounts and taxes, net - - - - - Interest - - - - - Intergovernmental - - - - - Notes and loans - - - - - Due from other funds - - - - - Restricted assets:
Cash and investments with fiscal agents 13,119,326 13,201,161 - 341,719 416,335 Land held for resale - - - - - Total assets 13,119,326$ 13,201,161$ -$ 341,719$ 416,335$ Liabilities:
Accounts payable -$ -$ -$ -$ -$ Payroll liabilities - - - - - Retention Payable - - - - - Deposits - - - - - Due to other funds 665,149 - - 341,582 15,323 Total liabilities 665,149 - - 341,582 15,323 Deferred Inflows of Resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - -
Fund Balances (Deficit):
Restricted for:
Public safety - - - - - Public works - - - - - Community development - - - - - Retirement - - - - - Capital projects 12,454,177 12,144,339 - - - Debt service - 1,056,822 - 137 401,012 Committed for:
Cannabis cultivation - - - - - Unassigned (deficit) - - - - - Total fund balances (deficit) 12,454,177 13,201,161 - 137 401,012 Total liabilities, deferred inflows of
resources and fund balances 13,119,326$ 13,201,161$ -$ 341,719$ 416,335$ (Continued)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Capital Projects Funds
June 30, 2022
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
142
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 229 of 582 Capital Project Debt Service
Funds Fund Total
Nonmajor
2017 City of Governmental
LRB Lynwood Funds
ASSETS
Cash and investments 2,347,631$ -$ 25,946,351$ Receivables:
Accounts and taxes, net - - 150,821 Interest - - 3,595 Intergovernmental - - 1,723,249 Notes and loans - - 3,197,035 Due from other funds - - 1,575,179 Restricted assets:
Cash and investments with fiscal agents - - 31,617,543 Land held for resale - - 497,694 Total assets 2,347,631$ -$ 64,711,467$ Liabilities:
Accounts payable -$ -$ 3,129,357$ Payroll liabilities - - 81,235 Retention Payable - - 521,473 Deposits - - 345,000 Due to other funds - - 3,790,653 Total liabilities - - 7,867,718 Deferred Inflows of Resources:
Unavailable revenues - - 1,057,301 Total deferred inflows of resources - - 1,057,301 Fund Balances (Deficit):
Restricted for:
Public safety - - 358,156 Public works - - 13,854,998 Community development - - 5,149,556 Retirement - - 1,853,599 Capital projects - - 31,726,565 Debt service 2,347,631 - 3,805,664 Committed for:
Cannabis cultivation - - 791,529 Unassigned (deficit) - - (1,753,619) Total fund balances (deficit) 2,347,631 - 55,786,448 Total liabilities, deferred inflows of
resources and fund balances 2,347,631$ -$ 64,711,467$ (Concluded)
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
143
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 230 of 582 HUD
Home Program Prop C
Fund Fund RMC Grant Retirement Gas Tax
REVENUES:
Taxes and assessments - $ 1,492,861$ - $ 5,580,188$ - $ Licenses and permits - - - - - Use of money and property - (18,600) - - (12,875) Intergovernmental 30,831 - - - 1,634,754 Charges for services - - - - - Miscellaneous 276,730 - 27,450 - - Total revenues 307,561 1,474,261 27,450 5,580,188 1,621,879 EXPENDITURES:
Current:
General government - - - 865,483 - Public safety - - - 733,353 - Public works - 82,388 - 1,448,700 1,016,154 Community development 249,567 - - 742,750 - Parks and recreation - - - 356,272 - Capital outlay - - - - - Debt service:
Principal payment - - - - - Interest and fiscal charges - - - - - Total expenditures 249,567 82,388 - 4,146,558 1,016,154
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 57,994 1,391,873
27,450 1,433,630 605,725
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in - - - - - Transfers out - (465,601) (503,803) (1,154,532) - Total other financing sources (uses) - (465,601) (503,803) (1,154,532) - NET CHANGE IN FUND BALANCES 57,994 926,272 (476,353) 279,098 605,725 FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 3,211,640 858,272 (31,625) 1,574,501 10,566 End of year 3,269,634$ 1,784,544$ (507,978)$ 1,853,599$ 616,291$ (Continued)
Special Revenue Funds
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
144
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 231 of 582 Air State
SB Quality COPS
SB 821 Prop A Measure R Improvement Program
REVENUES:
Taxes and assessments -$ 1,886,441$ 1,119,466$ -$ -$ Licenses and permits - - - - - Use of money and property (265) (43,053) (19,856) (3,803) (3,954) Intergovernmental - - - 90,510 173,402 Charges for services - - - - - Miscellaneous - - - - - Total revenues (265) 1,843,388 1,099,610 86,707 169,448 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - 140,704 Public works - 40,209 452,692 4,448 - Community development - - - - - Parks and recreation - - - - - Capital outlay - - - 58,497 - Debt service:
Principal payment - - 305,000 - - Interest and fiscal charges - - 257,626 - - Total expenditures - 40,209 1,015,318 62,945 140,704
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (265) 1,803,179
84,292 23,762 28,744
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - 43,497 - Transfers in - - - - - Transfers out - (1,495,572) (498,374) - - Total other financing sources (uses) - (1,495,572) (498,374) 43,497 - NET CHANGE IN FUND BALANCES (265) 307,607 (414,082) 67,259 28,744 FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 1,325 3,813,579 1,974,979 335,570 329,412 End of year 1,060$ 4,121,186$ 1,560,897$ 402,829$ 358,156$ (Continued)
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
City of Lynwood
145
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 232 of 582 Sheriff
Drug Lighting Safe Clean Impact Public
Seizure Maintenance Water Fees Art
REVENUES:
Taxes and assessments -$ 1,047,238$ -$ 263,437$ -$ Licenses and permits - - - - - Use of money and property - (5,825) - (20,549) (11,090) Intergovernmental - - 2,268,552 - - Charges for services - - - - 151,624 Miscellaneous - 2,000 - - - Total revenues - 1,043,413 2,268,552 242,888 140,534 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works - 797,507 226,151 - - Community development - - - - - Parks and recreation - - - - - Capital outlay - - - - - Debt service:
Principal payment - - - - - Interest and fiscal charges - - - - - Total expenditures - 797,507 226,151 - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 245,906
2,042,401 242,888 140,534
OTHER FINANCING SOURCES (USES):
Issuance of debt - 8,363 - - - Transfers in 116,879 - - - - Transfers out - - (24,034) (3,190) (5,000) Total other financing sources (uses) 116,879 8,363 (24,034) (3,190) (5,000) NET CHANGE IN FUND BALANCES 116,879 254,269 2,018,367 239,698 135,534 FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) (116,879) 942,940 259,832 1,940,677 1,044,389 End of year -$ 1,197,209$ 2,278,199$ 2,180,375$ 1,179,923$ (Continued)
Special Revenue Funds
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
146
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 233 of 582 Housing Beverage
HUD Community Business Container
Litter 108 Development Improvement Recycling
Abatement Loan (HUD) District Grant
REVENUES:
Taxes and assessments -$ -$ -$ -$ -$ Licenses and permits - - - 107,415 - Use of money and property 512 - - (3,697) (2,069) Intergovernmental - - 1,092,392 - 17,575 Charges for services 288,188 - - - - Miscellaneous - - 35,000 - - Total revenues 288,700 - 1,127,392 103,718 15,506 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works 613,090 - 433,151 - - Community development - - 522,081 172,633 1,805 Parks and recreation - - 39,489 - - Capital outlay - - - - - Debt service:
Principal payment - - - - 14,431 Interest and fiscal charges - - - - 1,255 Total expenditures 613,090 - 994,721 172,633 17,491
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (324,390)
- 132,671 (68,915) (1,985) OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in 289,284 - - - - Transfers out - (170,049) - - - Total other financing sources (uses) 289,284 (170,049) - - - NET CHANGE IN FUND BALANCES (35,106) (170,049) 132,671 (68,915) (1,985) FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 260,933 170,049 (223,204) 380,613 213,288 End of year 225,827$ -$ (90,533)$ 311,698$ 211,303$ (Continued)
Special Revenue Funds
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
147
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 234 of 582 LA County Dupont
Park Used Oil Lead
Maintenance Other Recycling Safety Prop 1B
Grant Grants Grant Grant Grant
REVENUES:
Taxes and assessments -$ -$ -$ -$ -$ Licenses and permits - - - - - Use of money and property (233) - (144) (170) (33) Intergovernmental 61,398 - - - - Charges for services - - - - - Miscellaneous - - - - - Total revenues 61,165 - (144) (170) (33) EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works - - 8,698 - - Community development - - - - - Parks and recreation - - - - - Capital outlay - - - - - Debt service:
Principal payment - - - - - Interest and fiscal charges - - - - - Total expenditures - - 8,698 - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 61,165
- (8,842) (170) (33) OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in - - - - - Transfers out (37,858) (1,114) - (112,907) (21,667) Total other financing sources (uses) (37,858) (1,114) - (112,907) (21,667) NET CHANGE IN FUND BALANCES 23,307 (1,114) (8,842) (113,077) (21,700) FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 12,427 1,114 4,848 113,077 21,700 End of year 35,734$ -$ (3,994)$ -$ -$ (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 148
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 235 of 582 Enterprise CalHome
Justice Zone State Cannabis
Assistance Program Grant Cultivation Measure M
REVENUES:
Taxes and assessments -$ -$ -$ -$ 1,266,804$ Licenses and permits - - - - - Use of money and property - (1,673) - - (4,977) Intergovernmental - - - - - Charges for services - - - - - Miscellaneous - - - - - Total revenues - (1,673) - - 1,261,827 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works - - - - 23,071 Community development - - - - - Parks and recreation - - - - - Capital outlay - - - - - Debt service:
Principal payment - - - - 110,000 Interest and fiscal charges - - - - 553,042 Total expenditures - - - - 686,113
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (1,673)
- - 575,714 OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - NET CHANGE IN FUND BALANCES - (1,673) - - 575,714 FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) (30,997) 174,119 4,552 791,529 154,065 End of year (30,997)$ 172,446$ 4,552$ 791,529$ 729,779$ (Continued)
For the Year Ended June 30, 2022
Special Revenue Funds
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
149
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 236 of 582 Prop 84
Park Grant HSIP
Fund TEA Grant SB1 ATP Grant Fund
REVENUES:
Taxes and assessments -$ -$ -$ -$ -$ Licenses and permits - - - - - Use of money and property (182) (2,466) (13,541) - - Intergovernmental - - 1,400,724 - 20,961 Charges for services - - - - - Miscellaneous - - - - - Total revenues (182) (2,466) 1,387,183 - 20,961 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works - - 501,892 - - Community development - - - - - Parks and recreation - - - - - Capital outlay - - - - - Debt service:
Principal payment - - - - - Interest and fiscal charges - - - - - Total expenditures - - 501,892 - -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (182) (2,466)
885,291 - 20,961
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in - - - - - Transfers out (122,052) (1,642,046) (459,277) (126,473) (8,603) Total other financing sources (uses) (122,052) (1,642,046) (459,277) (126,473) (8,603) NET CHANGE IN FUND BALANCES (122,234) (1,644,512) 426,014 (126,473) 12,358 FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 122,234 1,644,512 473,340 126,473 - End of year -$ -$ 899,354$ -$ 12,358$ (Continued)
Special Revenue Funds
For the Year Ended June 30, 2022
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
150
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 237 of 582 Capital
LEAP Urban Measure M Improvement
Grant Transportation Greening Bonds Projects
REVENUES:
Taxes and assessments -$ -$ -$ -$ -$ Licenses and permits - - - - - Use of money and property - - - 3,449 - Intergovernmental 71,124 - - - - Charges for services - - - - - Miscellaneous - - - - - Total revenues 71,124 - - 3,449 - EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works - 1,479,564 - - - Community development 71,124 - - - - Parks and recreation - - - - - Capital outlay - - - - 6,347,696 Debt service:
Principal payment - - - - - Interest and fiscal charges - - - 8 - Total expenditures 71,124 1,479,564 - 8 6,347,696
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES -
(1,479,564) - 3,441 (6,347,696) OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in - 1,479,518 - - 6,347,696 Transfers out - - (1,120,117) (1,767,195) - Total other financing sources (uses) - 1,479,518 (1,120,117) (1,767,195) 6,347,696 NET CHANGE IN FUND BALANCES - (46) (1,120,117) (1,763,754) - FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) - 2,135 - 6,257,609 441,523 End of year -$ 2,089$ (1,120,117)$ 4,493,855$ 441,523$ (Continued)
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds Capital Projects Funds
151
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 238 of 582 2002 HUD 2012 Measure R
2019 2020 Section 108 Measure R Bond
LRB LRB Loan (Bans) Proceeds
REVENUES:
Taxes and assessments -$ -$ -$ -$ -$ Licenses and permits - - - - - Use of money and property 666 650 23 311 146 Intergovernmental - - - - - Charges for services - - - - - Miscellaneous - - - - - Total revenues 666 650 23 311 146 EXPENDITURES:
Current:
General government - - - - - Public safety - - - - - Public works - - - - - Community development - - - - - Parks and recreation - - - - - Capital outlay - - - - - Debt service:
Principal payment - - - - - Interest and fiscal charges 6 4,500 - 184 - Total expenditures 6 4,500 - 184 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 660 (3,850)
23 127 146
OTHER FINANCING SOURCES (USES):
Issuance of debt - - - - - Transfers in - - - - - Transfers out (665,149) - (125,287) (372,278) (76,292) Total other financing sources (uses) (665,149) - (125,287) (372,278) (76,292) NET CHANGE IN FUND BALANCES (664,489) (3,850) (125,264) (372,151) (76,146) FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 13,118,666 13,205,011 125,264 372,288 477,158 End of year 12,454,177$ 13,201,161$ -$ 137$ 401,012$ (Continued)
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Capital Projects Funds
152
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 239 of 582 Capital Project
Funds Debt Service Fund Total
Nonmajor
2017 City of Governmental
LRB Lynwood Funds
REVENUES:
Taxes and assessments -$ -$ 12,656,435$ Licenses and permits - - 107,415 Use of money and property - - (163,298) Intergovernmental - - 6,862,223 Charges for services - - 439,812 Miscellaneous - - 341,180 Total revenues - - 20,243,767 EXPENDITURES:
Current:
General government - - 865,483 Public safety - - 874,057 Public works - - 7,127,715 Community development - - 1,759,960 Parks and recreation - - 395,761 Capital outlay - - 6,406,193 Debt service:
Principal payment - 634,523 1,063,954 Interest and fiscal charges - 1,383,292 2,199,913 Total expenditures - 2,017,815 20,693,036
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (2,017,815) (449,269) OTHER FINANCING SOURCES (USES):
Issuance of debt 743,759 - 795,619 Transfers in - 2,019,565 10,252,942 Transfers out (365,918) - (11,344,388)
Total other financing sources (uses) 377,841 2,019,565 (295,827) NET CHANGE IN FUND BALANCES 377,841 1,750 (745,096) FUND BALANCES (DEFICIT):
Beginning of year, as restated (Note 17) 1,969,790 (1,750) 56,531,544 End of year 2,347,631$ -$ 55,786,448$ (Concluded)
For the Year Ended June 30, 2022
City of Lynwood
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
153
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 240 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental revenues 2,063,578$ 2,063,578$ 30,831$ (2,032,747)$ Miscellaneous - - 276,730 276,730 Total revenues 2,063,578 2,063,578 307,561 (1,756,017) EXPENDITURES:
Current:
Community development 1,744,632 1,744,632 249,567 1,495,065 Total expenditures 1,744,632 1,744,632 249,567 1,495,065 NET CHANGE IN FUND BALANCE 318,946$ 318,946$ 57,994 (260,952)$ FUND BALANCE:
Beginning of Year 3,211,640
End of Year 3,269,634$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual HUD Home Program Special Revenue Fund
For the Year Ended June 30, 2022
154
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 241 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 1,193,812$ 1,193,812$ 1,492,861$ 299,049$ Use of money and property 37,117 37,117 (18,600) (55,717) Total revenues 1,230,929 1,230,929 1,474,261 243,332 EXPENDITURES:
Current:
Public works 92,782 117,158 82,388 34,770 Total expenditures 92,782 117,158 82,388 34,770
EXCESS OF REVENUES OVER
EXPENDITURES 1,138,147 1,113,771 1,391,873 278,102 OTHER FINANCING USES:
Transfers out (773,889) (1,818,889) (465,601) 1,353,288 Total other financing uses (773,889) (1,818,889) (465,601) 1,353,288 NET CHANGE IN FUND BALANCE 364,258$ (705,118)$ 926,272 1,631,390$ FUND BALANCE:
Beginning of Year 858,272
End of Year 1,784,544$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Prop C Special Revenue Fund
For the Year Ended June 30, 2022
155
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 242 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Miscellaneous 1,615,674$ 1,615,674 $ 27,450 $ (1,588,224) $ Total revenues 1,615,674 1,615,674 27,450 (1,588,224) OTHER FINANCING USES:
Transfers out (2,456,854) (2,456,854) (503,803) 1,953,051 Total other financing uses (2,456,854) (2,456,854) (503,803) 1,953,051 NET CHANGE IN FUND BALANCE (841,180)$ (841,180)$ (476,353) 364,827$ FUND BALANCE (DEFICIT):
Beginning of year (31,625)
End of year (507,978)$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual RMC Grant Special Revenue Fund
For the Year Ended June 30, 2022
156
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 243 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 3,883,174$ 3,883,174$ 5,580,188$ 1,697,014$ Total revenues 3,883,174 3,883,174 5,580,188 1,697,014 EXPENDITURES:
Current:
General government 826,694 826,694 865,483 (38,789) Public safety 758,586 758,586 733,353 25,233 Public works 1,383,775 1,383,775 1,448,700 (64,925) Community development 709,464 709,464 742,750 (33,286) Parks and recreation 340,304 340,304 356,272 (15,968) Total expenditures 4,018,823 4,018,823 4,146,558 (127,735)
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (135,649) (135,649) 1,433,630 1,569,279 OTHER FINANCING USES:
Transfers out (1,154,532) (1,154,532) (1,154,532) - Total other financing uses (1,154,532) (1,154,532) (1,154,532) - NET CHANGE IN FUND BALANCE (1,290,181)$ (1,290,181)$ 279,098 1,569,279$ FUND BALANCE:
Beginning of year 1,574,501
End of year 1,853,599$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Retirement Special Revenue Fund
For the Year Ended June 30, 2022
157
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 244 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 9,737$ 9,737$ (12,875)$ (22,612)$ Intergovernmental 1,804,043 1,804,043 1,634,754 (169,289) Total revenues 1,813,780 1,813,780 1,621,879 (191,901) EXPENDITURES:
Current:
Public works 1,452,683 1,461,826 1,016,154 445,672 Total expenditures 1,452,683 1,461,826 1,016,154 445,672 NET CHANGE IN FUND BALANCE 361,097$ 351,954$ 605,725 253,771$ FUND BALANCE:
Beginning of year 10,566
End of year 616,291$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
158
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 245 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 5$ 5$ (265)$ (270)$ Intergovernmental 160,892 160,892 - (160,892) Total revenues 160,897 160,897 (265) (161,162) OTHER FINANCING USES:
Transfers out (131,454) (131,454) - 131,454 Total other financing uses (131,454) (131,454) - 131,454 NET CHANGE IN FUND BALANCE 29,443$ 29,443$ (265) (29,708)$ FUND BALANCE:
Beginning of year 1,325
End of year 1,060$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual SB 821 Special Revenue Fund
For the Year Ended June 30, 2022
159
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 246 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 2,854,800$ 2,854,800$ 1,886,441$ (968,359)$ Use of money and property 58,993 58,993 (43,053) (102,046) Total revenues 2,913,793 2,913,793 1,843,388 (1,070,405) EXPENDITURES:
Current:
Public works 131,761 131,761 40,209 91,552 Capital outlay 106,473 106,473 - 106,473 Total expenditures 238,234 238,234 40,209 198,025
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 2,675,559 2,675,559 1,803,179 (872,380) OTHER FINANCING USES:
Transfers out (2,248,736) (2,278,511) (1,495,572) 782,939 Total other financing uses (2,248,736) (2,278,511) (1,495,572) 782,939 NET CHANGE IN FUND BALANCE 426,823$ 397,048$ 307,607 (89,441)$ FUND BALANCE:
Beginning of year 3,813,579
End of year 4,121,186$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Prop A Special Revenue Fund
For the Year Ended June 30, 2022
160
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 247 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 895,359$ 895,359$ 1,119,466$ 224,107$ Use of money and property 23,888 23,888 (19,856) (43,744) Total revenues 919,247 919,247 1,099,610 180,363 EXPENDITURES:
Current:
Public works 658,728 658,728 452,692 206,036 Debt service:
Principal payment 305,000 305,000 305,000 - Interest and fiscal charges 251,482 251,482 257,626 (6,144) Total expenditures 1,215,210 1,215,210 1,015,318 199,892
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (295,963) (295,963) 84,292 380,255 OTHER FINANCING USES:
Transfers out (1,020,565) (1,379,565) (498,374) 881,191 Total other financing uses (1,020,565) (1,379,565) (498,374) 881,191 NET CHANGE IN FUND BALANCE (1,316,528)$ (1,675,528)$ (414,082) 1,261,446$ FUND BALANCE:
Beginning of year 1,974,979
End of year 1,560,897$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Measure R Special Revenue Fund
For the Year Ended June 30, 2022
161
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 248 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 2,795$ 2,795$ (3,803)$ (6,598)$ Intergovernmental 80,028 80,028 90,510 10,482 Total revenues 82,823 82,823 86,707 3,884 EXPENDITURES:
Current:
Public works 254,000 254,000 4,448 249,552 Capital outlay - - 58,497 (58,497) Total expenditures 254,000 254,000 62,945 191,055
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (171,177) (171,177) 23,762 194,939 OTHER FINANCING SOURCES:
Issuance of debt - - 43,497 43,497 Total other financing sources - - 43,497 43,497 NET CHANGE IN FUND BALANCE (171,177)$ (171,177)$ 67,259 238,436$ FUND BALANCE:
Beginning of year 335,570
End of year 402,829$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2022
162
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 249 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 3,009$ 3,009$ (3,954)$ (6,963)$ Intergovernmental 100,000 100,000 173,402 73,402 Total revenues 103,009 103,009 169,448 66,439 EXPENDITURES:
Current:
Public safety 100,000 100,000 140,704 (40,704) Total expenditures 100,000 100,000 140,704 (40,704) NET CHANGE IN FUND BALANCE 3,009$ 3,009$ 28,744 25,735$ FUND BALANCE:
Beginning of year 329,412
End of year 358,156$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual State COPS Program Special Revenue Fund
For the Year Ended June 30, 2022
163
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 250 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Fines, forfeitures and penalties 2,500$ 2,500$ -$ (2,500)$ Use of money and property 152 152 - (152) Total revenues 2,652 2,652 - (2,652) OTHER FINANCING SOURCES:
Transfers in - - 116,879 116,879 Total other financing uses - - 116,879 116,879 NET CHANGE IN FUND BALANCE 2,652$ 2,652$ 116,879 114,227$ FUND BALANCE (DEFICIT):
Beginning of year (116,879)
End of year -$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Sheriff Drug Seizure Special Revenue Fund
For the Year Ended June 30, 2022
164
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 251 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 1,214,324$ 1,214,324$ 1,047,238$ (167,086)$ Use of money and property 10,000 10,000 (5,825) (15,825) Miscellaneous - - 2,000 2,000 Total revenues 1,224,324 1,224,324 1,043,413 (180,911) EXPENDITURES:
Current:
Public works 936,750 986,750 797,507 189,243 Total expenditures 936,750 986,750 797,507 189,243
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 287,574 237,574 245,906 8,332 OTHER FINANCING SOURCES:
Issuance of debt - - 8,363 8,363 Total other financing sources - - 8,363 8,363 NET CHANGE IN FUND BALANCE 287,574$ 237,574$ 254,269 16,695$ FUND BALANCE:
Beginning of year 942,940
End of year 1,197,209$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Lighting Maintenance Special Revenue Fund
For the Year Ended June 30, 2022
165
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 252 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental revenues 580,000$ 580,000$ 2,268,552$ 1,688,552$ Total revenues 580,000 580,000 2,268,552 1,688,552 EXPENDITURES:
Current:
Public works 490,014 490,014 226,151 263,863 Total expenditures 490,014 490,014 226,151 263,863
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 89,986 89,986 2,042,401 1,952,415 OTHER FINANCING USES:
Transfers out (175,830) (180,830) (24,034) 156,796 Total other financing uses (175,830) (180,830) (24,034) 156,796 NET CHANGE IN FUND BALANCE (85,844)$ (90,844)$ 2,018,367 2,109,211$ FUND BALANCE:
Beginning of year 259,832
End of year 2,278,199$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Safe Clean Water Special Revenue Fund
For the Year Ended June 30, 2022
166
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 253 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 48,500$ 48,500$ 263,437$ 214,937$ Use of money and property 12,846 12,846 (20,549) (33,395) Total revenues 61,346 61,346 242,888 181,542 OTHER FINANCING USES:
Transfers out (222,603) (222,603) (3,190) 219,413 Total other financing uses (222,603) (222,603) (3,190) 219,413 NET CHANGE IN FUND BALANCE (161,257)$ (161,257)$ 239,698 400,955$ FUND BALANCE:
Beginning of year 1,940,677
End of year 2,180,375$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Impact Fees Special Revenue Fund
For the Year Ended June 30, 2022
167
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 254 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 6,283$ 6,283$ (11,090)$ (17,373)$ Charges for services 315,000 315,000 151,624 (163,376) Total revenues 321,283 321,283 140,534 (180,749) OTHER FINANCING SOURCES (USES):
Transfers in 289,284 289,284 - (289,284) Transfers out (5,000) (5,000) (5,000) - Total other financing sources (uses) 284,284 284,284 (5,000) (289,284) NET CHANGE IN FUND BALANCE 605,567$ 605,567$ 135,534 (470,033)$ FUND BALANCE:
Beginning of year 1,044,389
End of year 1,179,923$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Public Art Special Revenue Fund
For the Year Ended June 30, 2022
168
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 255 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property -$ -$ 512$ 512$ Charges for services - - 288,188 288,188 Total revenues - - 288,700 288,700 EXPENDITURES:
Current:
Public works 751,743 751,743 613,090 138,653 Total expenditures 751,743 751,743 613,090 138,653
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (751,743) (751,743) (324,390) 427,353 OTHER FINANCING SOURCES:
Transfers in - - 289,284 289,284 Total other financing sources - - 289,284 289,284 NET CHANGE IN FUND BALANCE (751,743)$ (751,743)$ (35,106) 716,637$ FUND BALANCE:
Beginning of year 260,933
End of year 225,827$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Litter Abatement Special Revenue Fund
For the Year Ended June 30, 2022
169
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 256 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental 1,847,124$ 1,847,124$ 1,092,392$ (754,732)$ Miscellaneous - - 35,000 35,000 Total revenues 1,847,124 1,847,124 1,127,392 (719,732) EXPENDITURES:
Current:
Public works 694,637 694,637 433,151 261,486 Community development 812,486 812,486 522,081 290,405 Parks and recreation 49,000 49,000 39,489 9,511 Total expenditures 1,556,123 1,556,123 994,721 561,402
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 291,001 291,001 132,671 (158,330) OTHER FINANCING USES:
Transfers out (376,000) (376,000) - 376,000 Total other financing uses (376,000) (376,000) - 376,000 NET CHANGE IN FUND BALANCE (84,999)$ (84,999)$ 132,671 217,670$ FUND BALANCE (DEFICIT):
Beginning of year (223,204)
End of year (90,533)$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Housing Community Development (HUD) Special Revenue Fund For the Year Ended June 30, 2022
170
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 257 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Licenses and permits 112,000$ 112,000$ 107,415$ (4,585)$ Use of money and property 4,006 4,006 (3,697) (7,703) Total revenues 116,006 116,006 103,718 (12,288) EXPENDITURES:
Current:
Community development 360,300 360,300 172,633 187,667 Total expenditures 360,300 360,300 172,633 187,667 NET CHANGE IN FUND BALANCE (244,294)$ (244,294)$ (68,915) 175,379$ FUND BALANCE:
Beginning of year 380,613
End of year 311,698$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Business Improvement District Special Revenue Fund
For the Year Ended June 30, 2022
171
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 258 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 2,923$ 2,923$ (2,069)$ (4,992)$ Intergovernmental 36,150 36,150 17,575 (18,575) Total revenues 39,073 39,073 15,506 (23,567) EXPENDITURES:
Current:
Community development 18,100 18,100 1,805 16,295 Debt service:
Principal payment - - 14,431 (14,431) Interest and fiscal charges - - 1,255 (1,255) Total expenditures 18,100 18,100 17,491 609
EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES 20,973 20,973 (1,985) (22,958) NET CHANGE IN FUND BALANCE 20,973$ 20,973$ (1,985) (22,958)$ FUND BALANCE:
Beginning of year 213,288
End of year 211,303$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Beverage Container Recycling Grant Special Revenue Fund For the Year Ended June 30, 2022
172
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 259 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 121$ 121$ (233)$ (354)$ Intergovernmental - - 61,398 61,398 Total revenues 121 121 61,165 61,044 OTHER FINANCING USES:
Transfers out - - (37,858) (37,858) Total other financing uses - - (37,858) (37,858) NET CHANGE IN FUND BALANCE 121$ 121$ 23,307 23,186$ FUND BALANCE:
Beginning of year 12,427
End of year 35,734$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual LA County Park Maintenance Grant Special Revenue Fund
For the Year Ended June 30, 2022
173
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 260 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 78$ 78$ (144)$ (222)$ Intergovernmental 19,243 19,243 - (19,243) Total revenues 19,321 19,321 (144) (19,465) EXPENDITURES:
Current:
Public works 9,921 9,921 8,698 1,223 Total expenditures 9,921 9,921 8,698 1,223 NET CHANGE IN FUND BALANCE 9,400$ 9,400$ (8,842) (18,242)$ FUND BALANCE (DEFICIT):
Beginning of year 4,848
End of year (3,994)$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Used Oil Recycling Grant Special Revenue Fund
For the Year Ended June 30, 2022
174
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 261 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 10,087$ 10,087$ (170)$ (10,257)$ Total revenues 10,087 10,087 (170) (10,257) OTHER FINANCING USES:
Transfers out - - (112,907) (112,907) Total other financing uses - - (112,907) (112,907) NET CHANGE IN FUND BALANCE 10,087$ 10,087$ (113,077) (123,164)$ FUND BALANCE:
Beginning of year 113,077
End of year -$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Dupont Lead Safety Grant Special Revenue Fund
For the Year Ended June 30, 2022
175
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 262 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Intergovernmental 30,000$ 30,000$ -$ (30,000)$ Total revenues 30,000 30,000 - (30,000) EXPENDITURES:
Current:
Public safety 30,000 30,000 - 30,000 Total expenditures 30,000 30,000 - 30,000 NET CHANGE IN FUND BALANCE -$ -$ - -$ FUND BALANCE (DEFICIT):
Beginning of year (30,997)
End of year (30,997)$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Justice Assistance Special Revenue Fund
For the Year Ended June 30, 2022
176
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 263 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property 1,695$ 1,695$ (1,673)$ (3,368)$ Total revenues 1,695 1,695 (1,673) (3,368) NET CHANGE IN FUND BALANCE 1,695$ 1,695$ (1,673) (3,368)$ FUND BALANCE:
Beginning of year 174,119
End of year 172,446$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Enterprise Zone Program Special Revenue Fund
For the Year Ended June 30, 2022
177
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 264 of 582 Original Final Variance with
Budget Budget Actual Final Budget
EXPENDITURES:
Current:
Public works 12,350$ 12,350$ -$ 12,350$ Total expenditures 12,350 12,350 - 12,350 NET CHANGE IN FUND BALANCE (12,350)$ (12,350)$ - 12,350$ FUND BALANCE:
Beginning of year 791,529
End of year 791,529$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Cannabis Cultivation Special Revenue Fund
For the Year Ended June 30, 2022
178
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 265 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Taxes and assessments 1,014,740$ 1,014,740$ 1,266,804$ 252,064$ Use of money and property - - (4,977) (4,977) Total revenues 1,014,740 1,014,740 1,261,827 247,087 EXPENDITURES:
Current:
Public works 32,161 32,161 23,071 9,090 Debt service:
Principal payment 110,000 110,000 110,000 - Interest and fiscal charges 549,100 549,100 553,042 (3,942) Total expenditures 691,261 691,261 686,113 5,148
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 323,479 323,479 575,714 252,235 OTHER FINANCING USES:
Transfers out (131,457) (201,457) - 201,457 Total other financing uses (131,457) (201,457) - 201,457 NET CHANGE IN FUND BALANCE 192,022$ 122,022$ 575,714 453,692$ FUND BALANCE:
Beginning of year 154,065
End of year 729,779$
City of Lynwood
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Measure M Special Revenue Fund
For the Year Ended June 30, 2022
179
FINAL DRAFT 02.16.2023City Council Regular Meeting - Page 266 of 582 Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:
Use of money and property -$ -$ (13,541)$ (13,541)$ Intergovernmental 1,394,377 1,394,377 1,400,724 6,347 Total revenues 1,394,377 1,394,377 1,387,183 (7,194) EXPENDITURES: