Lynwood City Council
June 2, 2026

OPERATING REVENUES
Sales and service charges $ 16,794,701 $ 12, 269,603 Total operating revenues 16,794,701 12,269,603

OPERATING EXPENSES
Administration 2,710,737 -
Insurance - 2,978,448
Claims - 3,865,196
Water utility 8,415,042 -
Sewer utility 1,948,298 -
Vehicle & equipment maintenance - 1,949,569 Depreciation and amortization 360,306 235,999 Total operating expenses 13,434,383 9,029,212
OPERATING INCOME 3,360,318 3,240,391

NONOPERATING REVENUES (EXPENSES)
Investment earnings 791,725 125,766
Gain on sale of capital asset - 48,615 Interest expense (1,568,174) (39,033)
Total nonoperating revenues (expenses) (776,449) 135,348 Income before transfers 2,583,869 3,375,739

TRANSFERS
Transfers in - 1,757,637
Transfers out (3,515,238) -
Total transfers (3,515,238) 1,757,637
CHANGES IN NET POSITION (931,369) 5,133,376

NET POSITION
Beginning of year 2,543,664 11,071,004
End of the year $ 1,612,295 $ 16,204,380
487
City of Lynwood
Statement of Cash Flows
Proprietary Funds
Year ended June 30, 2025

See notes to basic financial statements.
29 Business-Type Governmental
A
ctivities Activities
Water and
Sewer Internal
Enterprise Fund Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 16,712,812 $ 11,621,780 Payments to suppliers and employees (13,166,199) (1,865,961) Payments for insurance premium and claims - (6,349,296) Net cash provided by operating activities 3,546,613 3,406,523

CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in (out) (3,515,238) 1,757,637
Cash provided by (used in) noncapital financing activities (3,515,238) 1,757,637

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Sale of capital assets 366,760 48,615
Acquisition and construction of capital assets - (130,868) Principal repayments (1,044,157) (205,639)
Interest paid (1,538,670) (39,033)
Cash used in capital and related financing activities (2,216,067) ( 326,925)

CASH FLOWS FROM INVESTING ACTIVITY
Investment earnings 856,608 132,996
Cash provided by investing activity 856,608 132,996 Changes in cash and investments
(1,328,084) 4,970,231

CASH AND INVESTMENTS
Beginning of year 29,438,073 17,129,243
End of year $ 28,109,989 $ 22,099,474

RECONCILIATION OF CASH AND INVESTMENTS

TO THE STATEM ENT OF NET POSITION
Cash and investments $ 6,676,624 $ 21,799,474
Cash and investments held by fiscal agent or in the trust 21,433,365 300,000 Total $ 28,109,989 $ 22,099,474
(Continued)
488
City of Lynwood
Statement of Cash Flows (Continued)
Proprietary Funds
Year ended June 30, 2025

See notes to basic financial statements.
30 Business-Type Governmental
Activities A ctivities
Water and
Sewer Internal
Enterprise Fund Service Funds

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED BY OPERATING ACTIVITIES
Operating income $ 3,360,318 $ 3,240,391
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation and amortization 360,306 235,999 Change in assets, deferred outflows of resources,
liabilities and deferred inflows of resources
Increase in accounts receivable (81,889) (7,193) Increase in prepaid items - (49,862)
Decrease in deferred outflows of
resources related to pension 479,903 -
Decrease in deferred outflows of
resources related to OPEB 127,551 -
Increase (decrease) in accounts payable (130,589) 56,131 Increase in accrued expenses 447 10,687 Decrease in due to other funds - (640,630) Increase in deposits 14,514 -
Increase in claims payable - 561,000
Increase in compensated absences 184,061 -
Decrease in net pension liabilities (406,400) - Decrease in net OPEB liabilities (132,724) -
Decrease in deferred inflows of
resources related to OPEB (228,885) -
Total adjustments 186,295 166,132
Net cash provided by operating activities $ 3,546,613 $ 3,406,523 (Concluded)
489

FIDUCIARY FUND FINANCIAL STATEMENTS

490
City of Lynwood
Statement of Fiduciary Net Position
Fiduciary Fund
June 30, 2025

See notes to basic financial statements.
31 Successor
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and investments $ 8,484,568
Cash and investments with fiscal agents 6,437,887
Accounts receivable 12,925
Prepaid items 60,685
Advance to the City of Lynwood 957,380
Capital assets, not being depreciated 812,496
Total assets 16,765,941

LIABILITIES
Accounts payable 23,161
Accrued interest 142,685
Deposits 25,386
Long-term liabilities
Due within one year 1,115,000
Due in more than one year 6,590,000
Total liabilities 7,896,232

NET POSITION
Restricted for Successor Agency 8,869,709
Total net position $ 8,869,709
491
City of Lynwood
Statement of Changes in Fiduciary Net Position
Fiduciary Fund
Year ended June 30, 2025

See notes to basic financial statements.
32 Successor
Agency
Private-Purpose
Trust Fund

ADDITIONS
Redevelopment property tax trust fund $ 540,522
Use of money and property 335
Miscellaneous 29,400
Total additions 570,257

DEDUCTIONS
Community development 481,879
Interest and fiscal charges 439,355
Total deductions 921,234
CHANGES IN FIDUCIARY NET POSITION (350,977)

FIDUCIARY NET POSITION
Beginning of year 9,220,686
End of year $ 8,869,709
492

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493

NOTES TO THE BASIC FINANCIAL STATEMENTS

494

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495
City of Lynwood
Index to the Notes to the Basic Financial Statements
Year ended June 30, 2025

33 PAGE
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES A. Description of the Reporting Entity 35
B. Basis of Accounting and Measurement Focus 36
C. Cash and Investments 40
D. Interfund Receivable and Payable 41
E. Accounts and Tax Receivables 41
F. Lease Receivable 41
G. Prepaid Items 42
H. Capital Assets 42
I. Deferred Outflows of Resources and Deferred Inflows of Resources 43 J. Interest Payable 43
K. Unearned Revenue 43
L. Compensated Absences 44
M. Claims and Judgement 44
N. Lease Liabilities 44
O. Subscription Liabilities 45
P. Long-Term Debt 45
Q. Pensions 45
R. Other Postemployment Benefits (“OPEB”) Plan 46
S. Net Position 47
T. Fund Balances 47
U. Property Taxes 48
V. Use of Estimates 49
W. Implementation of New GASB Pronouncements 49

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Encumbrances 50
B. Continuing Appropriations 50
C. Deficit Fund Balances/Net Position 51
D. Excess of Expenditures Over Appropriations 52

NOTE 3 CASH AND INVESTMENTS
A. Demand Deposits 53
B. Investments Authorized by the California Government Code and the City’s Investment Policy 53
C. Investments Authorized by Debt Agreements 54
D. Fair Value Measurement 55
E. Risk Disclosures 56
F. Investment in State Investment Pool 57

NOTE 4 RECEIVABLES 57

NOTE 5 NOTES AND LOANS RECEIVABLES
A. CDBG and HOME Loans 58
B. Housing Authority 58
C. General Fund 62

NOTE 6 LEASE RECEIVABLES 62

496
City of Lynwood
Index to the Notes to the Basic Financial Statements
Year ended June 30, 2025

34 PAGE
NOTE 7 INTERFUND ACTIVITIES
A. Due To/From Other Funds 63
B. Advances from Fiduciary Fund 63
C. Transfers 64

NOTE 8 CAPITAL ASSETS
A. Governmental Activities 65
B. Business-Type Activities 66

NOTE 9 LONG-TERM LIABILITIES
A. Governmental Activities 67
B. Business-Type Activities 75
C. Fiduciary Activities 79

NOTE 10 RISK MANAGEMENT
A. Liability Program 81
B. Workers’ Compensation Program 82
C. All Risk Property Program 82
D. Other Programs 83
E. Liability for Self-Insured Claims 83

NOTE 11 DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plans 85
B. Net Pension Liability 88
C. Changes in the Net Pension Liability 90
D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions 92
E. Payable to the CalPERS Plan 94
F. Pension Tax Override 94

NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (“OPEB”)
A. General Information about the OPEB Plan 95
B. Net OPEB Liability 96
C. Changes in Net OPEB Liability 97
D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB 98

NOTE 13 NET INVESTMENT IN CAPITAL ASSETS 99

NOTE 14 FUND BALANCE CLASSIFICATIONS 100

NOTE 15 DEFERRED COMPENSATION PLAN 100

NOTE 16 COMMITMENTS AND CONTINGENCIES 100

NOTE 17 ADJUSTMENTS AND RESTATEMENTS OF BEGINNING BALANCES 101

NOTE 18 SUBSEQUENT EVENTS 102
497
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

35 NOTE 1 REPORTING ENTITY AND 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 Reporting Entity
The City was incorporated in 1921, under the general laws of the State of California.

The City operates under a Council -Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and construction of public 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 potential for that organization to provide specific financial benefits to or impose specific financial 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 improvements 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 system. The Lynwood Utility Authority is included in the business -type activities in the City’s Statements of Net Position and Activities.

498
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

36 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Description of Reporting Entity (Continued)

Blended Component Units (Continued)

Lynwood Housing Authority
The Lynwood Housing Authority (“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 programs. 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.

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 have 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 funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that comprise its assets, liabilities, fund balances or net position, 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 include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental 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 liabilities, including capital assets, as well as infrastructure assets, and long- term liabilities, are included in the accompanying 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.

499
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

37 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. Basis of Accounting and Measurement Focus (Continued)

Government-Wide Financial Statements (Continued)
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 regard to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as int ernal 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

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 funds and aggregated nonmajor funds. 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 Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recogni zed in the accounting period in which they become both measurable and available to finance expenditures of the current period.

500
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

38 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. Basis of Accounting and Measurement Focus (Continued)

Governmental Fund Financial Statements (Continued)
Revenues are recognized as soon as they are both “measurable” and “available”.

Revenues are considered to be available when they are collectible within the current period or soon enough 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 es, sales tax es, intergovernmental revenues , and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The Reconciliation of the Governmental 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 accounts 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 charged 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 Act 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.

Grants Special Revenue Fund accounts for the grants requiring segregated fund accounting. Financing is provided by federal, state, and local agencies.

Retirement Special Revenue Fund accounts for revenue received from property tax levy to cover retirement costs.

Capital Improvement Capital Projects 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.

501
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

39 NOTE 1 REPORTING ENTITY AND 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 four individual funds that 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 recogniz ed in the period in which 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 revenues that are generated from 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 user 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 include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary fund represents a private-purpose trust fund. The private- purpose trust fund is reported using the “economic resources” measurement focus and the accrual basis of accounting where the assets associated 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.

502
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

40 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B. Basis of Accounting and Measurement Focus (Continued)

Fiduciary Fund Financial Statements (Continued)
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 expeditiously 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.

C. Cash 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, therefore, all cash and investments in the proprietary funds are considered cash and investments for Statement of Cash Flows purposes.

503
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

41 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. Cash and Investments (Continued)
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 specified 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
Activities 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 residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as “interfund balances”.

E. Account and Tax Receivables
All account and tax receivables are shown net of any allowance for uncollectible accounts, if applicable, and estimated refunds due.

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.

504
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

42 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. Lease Receivable (Continued)
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 interest rate implicit in the lease.
• 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 circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

G. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government -wide and fund financial statements by using purchase method. A nonspendable fund balance has been reported in the governmental funds to show that the prepaid items do not constitute “available spendable resources,” even though they are a component of current assets.

H. 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:

For all infrastructure systems, the City elected to use the Basic Approach for infrastructure reporting. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, parks and recreation, lands and improvement system, storm 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 system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.

Assets Years
Buildings 30 to 50
Improvements other than buildings 30 to 50
Infrastructure 30 to 50
Utility systems 75
Vehicles 7 to 15
Other equipment and furnishings 5 to 15
505
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

43 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. Capital Assets (Continued)
These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.

Right-of-Use Lease Assets
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Right-of-Use Subscription Assets
Subscription assets (SBITA) are recorded at the amount of the initial measurement of the SBITA liabilities (“subscription liabilities”) and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the subscription term, less any incentives received f rom the SBITA vendor at or before the commencement of the subscription term along with subscription implementation costs.

Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology assets.

I. 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.

J. Interest Payable
In the government -wide financial statements, interest payable on long- term debt is recognized as the liability is incurred for governmental activities and business -type activities. In the fund financial statements, only proprietary fund and private- purpose trust fund types recognize the interest payable when the liability is incurred.

K. 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.

506
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

44 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

L. 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 t o 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 City recognizes liability for compensated absences for a leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. The liability for compensated absences includes salary-related benefits, where applicable. Compensated absences are primarily liquidated by the General Fund.

M. 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 and it typically liquidated by the General Fund.

N. Lease Liabilities
The City recognizes lease liabilities with an initial, individual 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 City 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.

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 City 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 circumstances that would require a remeasurement 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.

507
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

45 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

O. Subscription Liabilities
The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year in the government -wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying information technology assets, or number of user seats are not included in the measurement of the subscription liability.

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

Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.

• The City generally uses its incremental borrowing rate as the discount rate for SBITA.

• The subscription term includes the noncancellable period of the SBITA.

Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

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

P. Long-Term Debt
In the government -wide financial statements, long- term debt and other long- term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts 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.

Q. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expenses, 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.

508
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

46 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Q. Pensions (Continued)
The following timeframes are used for pension reporting:

Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period: July 1, 2023 to June 30, 2024

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.

R. 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:

Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period: July 1, 2023 to June 30, 2024

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 a mounts 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.

509
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

47 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

S. 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 restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

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.

T. 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, 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 externally 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 specific purposes by the City’s highest level of decision making authority or a body or official that has 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.
510
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

48 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

T. Fund Balances (Continued)

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 General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than 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.

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

U. Property Taxes
Property tax revenue is recognized in the fiscal year for which 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 for 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 property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.

511
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

49 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

U. Property Taxes (Continued)

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 following 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 state 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.

V. 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 amounts and disclosures. Accordingly, actual results could differ from those estimates.

W. New GASB Pronouncements
During the year ended June 30, 202 5, the City implemented the following GASB Standards. The financial statements included herein apply the requirements and provisions of the standard.

GASB Statement No. 101 - Compensated Absences . The requirements of this statement are effective for reporting periods beginning after December 15, 2023.

GASB Statement No. 102 – Certain Risk Disclosures . The requirements of this statement are effective for reporting periods beginning after June 15, 2024.

512
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

50 NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

W. New GASB Pronouncements (Continued)
Released GASB Statements to be implemented in future financial statements are as follows:

GASB Statement No. 103 – Financial Reporting Model Improvements . The requirements of this statement are effective for reporting periods beginning after June 15, 2025.

GASB Statement No. 105 – Subsequent Events. The requirements of this statement are effective for reporting periods beginning after June 15, 2026.

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 purposes in the General Fund, Special Revenue Funds, and similar governmental funds.

Encumbrances outstanding at fiscal year-end are reported as committed, assigned or restricted fund balances . 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 estimated liabilities.

The outstanding amounts of encumbrances as of June 30, 2025, are as follows:

B. Continuing Appropriations
The unexpended and unencumbered appropriations that are available and recommended for continuation are approved by the City Council for carryover to the following fiscal year. These commitments are reported as committed or assigned fund balance.

Funds Amount
G
eneral fund $ 7,097
American rescue plan special revenue fund 69,297
Grants special revenue fund 190,545
Capital improvement capital project fund 1,980,595
Nonmajor governmental funds 1,713,817
Internal service funds 243,878
513
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

51 NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED)

C. Deficit Fund Balances/Net Position
The following funds contained a deficit fund balances/net position as of June 30, 2025:

Landscape Maintenance Special Revenue Fund accounts for the landscape assessment and expenses of the City. The City collects landscape assessments from its residents to fund the City’s landscaping maintenance costs for its parks and sidewalks. This assessment has not been increased since 1998. As a result, the current assessment is not sufficient to cover the rising landscape maintenance costs.

The Landscape Maintenance Special Revenue Fund is currently experiencing a structural deficit that must be addressed. A prior Proposition 218 rate increase did not receive majority support. The City will continue to evaluate potential revenue enhancement opportunities and realign expenditures to restore balance to the fund.

As part of this effort, the City will identify cost -saving measures and implement appropriate reallocations of expenditures, where permitted. Over the long term, the City intends to continue pursuing a rate increase to the landscape maintenance assessment to ensure the fund’s financial sustainability.

Special revenue fund deficits will be eliminated when revenue becomes available.

Grants, Litter Abatement and Transportation Special Revenue Funds expect to receive funds from granting agencies or subsidies from the General Fund.

Amount
Major governmental funds
Landscape maintenance special revenue fund $ (9,954,013) Grants special revenue fund (2,133,833)
Nonmajor governmental funds
Litter abatement special revenue fund (518,010)
Transportation special revenue fund (9,516)
Funds
514
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

52 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, 2025:

NOTE 3 CASH AND INVESTMENTS

Cash and investments at June 30, 2025 , are classified in the accompanying financial statements as follows:

Appropriations Expenditures Excess
M
ajor governmental funds
General Fund
Current
General government
City council $ 321,462 $ 335,973 $ (14,511) City manager 1,603,893 1,703,416 (99,523) Debt service
Principal retirement 1,275,821 1,346,514 (70,693) Interest and fiscal charges 1,305,014 1,321,344 (16,330) Housing Authority Special Revenue Fund 2,527,795 3,003,806 (476,011) Nonmajor governmental funds
Lighting maintenance special revenue fund 1,281,941 1,371,149 (89,208) Air quality improvement special revenue fund 213,200 240, 137 (26,937) Funds
Government-Wide Fiduciary Fund
Statement of Statement of
Net Position Net Position Total
Unrestricted assets
Cash and investments $ 91,595,914 $ 8,484,568 $ 100,080,482 Restricted assets
Cash held by City 7,336 - 7,336 Cash and investments with fiscal agents 50,798,814 6,437,887 57,236,701 Deposit in trust 300,000 - 300,000 Total cash and investments $ 142,702,064 $ 14,922,455 $ 157,624,519 515
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

53 NOTE 3 CASH AND INVESTMENTS (CONTINUED)

Cash and investments at June 30, 2025 consisted of the following:

A. Demand Deposits
The carrying amount of the City’s demand deposits were $60 ,875,197 at June 30, 2025. Bank balances before reconciling items were $62,719,954 at that date, the total 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 fair value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage 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 Corporation (“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, 2025.

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 restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

Petty cash $ 1,800
Deposits with financial institution 60,875,197
Deposit in trust 300,000
Investments 96,447,522
Total cash and investments $ 157,624,519
516
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

54 NOTE 3 CASH AND INVESTMENTS (CONTINUED)

B. Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)
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.

C. Investments Authorized by Debt Agreements
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 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.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer Local Agency Investment Fund (LAIF) N/A None $75 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 (must be comprised 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 in the calculation of the 2% limitation.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Type Maturity of Portfolio One Issuer Local Agency Investment Fund (LAIF) N/A None $40 million U.S. treasury obligations 5 years None None
U.S. government sponsored enterprise securities 5 years None None Certificates of deposit 5 years None None
Commercial paper 270 days None 2%
Mutual funds (must be comprised of
eligible securities permitted under this policy) N/A None None Money market funds (must be comprised of
eligible securities permitted under this policy) N/A None None Medium-term corporate notes 5 years 30% None
Supra national debt obligations 5 years 5% None
517
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

55 NOTE 3 CASH AND INVESTMENTS (CONTINUED)

D. Fair Value Measurement
The Pool categorizes its fair value measurement within the fair value hierarchy established by U.S. GAAP. These principles recognize a three -tiered fair value hierarchy, of which levels 1 & 2 apply to the City as follows:

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail significant degree of judgement. Examples would be securities with prices derived from the major exchanges.

Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. Examples would be securities with prices derived from market corroborated sources such as indices and yield curves; and matrix pricing, such as for most debt securities.

Level 3: Valuations are based on unobservable inputs and include situations where there is little, if any, market activity for the investment. Examples are private equity valuations and complex derivatives with no active market.

At June 30, 2025, 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 measurement fall at June 30, 2025:

Quoted Prices in Significant
Active Markets for Other Observable
Identical Assets Inputs
Investment Type (Level 1) (Level 2) Uncategorized T otal Local Agency Investment Fund (LAIF) $ - $ - $ 23,180,733 $ 23,180,733 U.S. treasury obligations 6,453,315 - - 6,453,315 U.S. government sponsored enterprise
securities - 10,653,932 - 10,653,932 Negotiable certificates of deposit - 5,879,355 - 5,879,355 Corporate bonds - 6,098,714 - 6,098,714 Money market funds - 236,305 - 236,305 Held by fiscal agents
Money market funds - - 43,945,168 43,945,168 $ 6,453,315 $ 22,868,306 $ 67,125,901 $ 96,447,522 Measurement Input
518
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

56 NOTE 3 CASH AND INVESTMENTS (CONTINUED)

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 investments 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:

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 investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating by Standard and Poor’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:

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, 2025, 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. 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 Fund (LAIF) $ 23,180,733 $ 23,180,733 $ - $ - $ - $ - U.S. treasury obligations 6,453,315 2,443,320 481,621 1,526,070 987,539 1,014,765 U.S. government sponsored enterprise
securities 10,653,932 2,991,270 2,562,974 994,590 1,583,887 2,521,211 Negotiable certificates of deposit 5,879,355 735,205 1,221,986 3,175,144 747,020 - Corporate bonds 6,098,714 996,385 1,001,321 404,800 1,939,784 1,756,424 Money market funds 236,305 236,305 - - - - Held by fiscal agents
Money market funds 43,945,168 43,945,168 - - - - $ 96,447,522 $ 74,528,386 $ 5,267,902 $ 6,100,604 $ 5,258,230 $ 5,292,400 Investment Type Total AAA AA A Not Rated
Local Agency Investment Fund (LAIF) $ 23,180,733 $ - $ - $ - $ 23,180,733 U.S. treasury obligations 6,453,315 6,453,315 - - - U.S. government sponsored enterprise
securities 10,653,932 10,139,841 - - 514,091 Negotiable certificates of deposit 5,879,355 - - - 5,879,355 Corporate bonds 6,098,714 496,850 3,843,836 1,758,028 - Money market funds 236,305 236,305 - - - Held by fiscal agents
Money market funds 43,945,168 - - - 43,945,168 $ 96,447,522 $ 17,326,311 $ 3,843,836 $ 1,758,028 $ 73,519,347 519
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

57 NOTE 3 CASH AND INVESTMENTS (CONTINUED)

E. Risk Disclosures (Continued)

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 risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.

F. Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (“LAIF”) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio), which approximates fair value. As of June 30, 2025, the City had $23,180,733 invested in LAIF.

NOTE 4 RECEIVABLES

Summary of receivables at June 30, 2025 is as follows:

Allowance for
Uncollectible
Receivable Accounts Net Amount
Governmental Activities
Accounts and taxes $ 9,161,624 $ (105,706) $ 9,055,918 Interest 394,039 - 394,039
Intergovernmental 8,056,702 - 8,056,702 Total $ 17,612,365 $ (105,706) $ 17,506,659
Business-type Activities
Accounts $ 3,456,511 $ (418,396) $ 3,038,115 Total $ 3,456,511 $ (418,396) $ 3,038,115
Fiduciary Activities
Accounts $ 12,925 $ - $ 12,925 Total $ 12,925 $ - $ 12,925
520
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

58 NOTE 5 NOTES AND LOANS RECEIVABLES

A. CDBG and HOME Loans
The City has received funding from the U.S. Department of Housing and Urban 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 princ ipal 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, 2025 , the gross amount of the loans and notes receivable amounted to $7,132,757. The amount presented under the Grants Special Revenue Fund, which is net of allowance for the future amount expected to be forgiven in the amount of $3,935,722 was $3,197,035.

B. Housing Authority
Pursuant to AB x1 26, the Housing Authority was created to manage the housing function of the City’s former Lynwood Redevelopment Agency (Agency). As a result, certain loans made by the Agency are now reported under the Housing Authority.

Parcels of land were sold to commercial real estate developers by the former Agency in exchange for various loans. Such loans have terms ranging from 45 to 69 years, with interest rates ranging from 0% to 0.25%. 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 Housing Authority also extended rehabilitation loans to property owners for the rehabilitation and improvements of commercial buildings. The following describes the Housing Fund’s loans receivable in detail.

• Habitat for Humanity – 3076 Redwood

The Agency 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 the rehabilitation of the unit.

• Habitat for Humanity – 5525 Clark

The Agency 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 the rehabilitation of the unit.

521
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

59 NOTE 5 NOTES AND LOANS RECEIVABLES (CONTINUED)

B. Housing Authority (Continued)

• Habitat for Humanity – 10-unit Low-income Project

In July 2009, the Agency extended a non- interest-bearing set-aside note for $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.

• Habitat for Humanity – 3254 Palm Avenue

In April 2009, the Agency extended a non -interest-bearing set-aside note for $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 households. Pursuant to the loan agreement, the Agency contributed the land and $243,100 to build 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 responsible for the repayment of an equal share of the set-aside note amount.

• Developer Loan – 11300 Atlantic Avenue

In February 2009, the Agency 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 total amount represents the cash contribution 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 amount of the note shall be reduced by such amount.

• Atlantic Housing Development

On April 23, 2013, the Los Angeles 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 Successor Agency of the former Agency and the Housing Authority to construct sixty -six (66) non- age-restricted low-to-moderate-income housing units (the Rogel I Units).

522
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

60 NOTE 5 NOTES AND LOANS RECEIVABLES (CONTINUED)

B. Housing Authority (Continued)

• Atlantic Housing Development (Continued)

On December 22, 2015, the City and Pacific Development Consultants, Inc., (the Developer) entered into a Disposition and Development Agreement (the Original DDA). The Original DDA provided, among other things, for the City’s sale of Lots 1 through 15, inclusive of Tract No. 8242 in the City, as per the map recorded in book 115, pages 55 and 56 of the Los Angeles County office, (the Property) to the Developer and the Developer’s purchase of the Property from the City, the Developer’s construction of approximately eighty -one (81) affordable senior apartment units on the Property, incidental parking, landscaping, and related improvements (the Senior Project), Developer’s submittal to the California Tax Credit Allocation Committee of an application for so- called “9%” low- income tax credits to help finance the acquisition of the Property 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 February 14, 2017, the California Department of Finance and the Oversight Board to the former and dissolved Agency 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, as needed by the Housing Authority to provide the funding required to construct the Rogel I Units, subject to the limited availability of RPTTF funds.

On September 5, 2017, the Housing Authority and the Developer entered that certain Amended and Restated DDA (Existing DDA) replacing the Original DDA that provides for, among other things: (1) City's conveyance of the property located on the west side of Atlantic Avenue, between Agnes Avenue and Lavinia Avenue, in the City ; (2) the development of sixty- seven (67) multi-family apartment units, consisting of sixty-six (66) non-age restricted affordable apartment units and one (1) on-site manager's unit, as more particularly described in the Existing DDA and referred to therein as the "Project"; and (3) Housing Authority's construction loan of Seventeen Million Dollar ($17,000,000) subject to the terms and conditions set forth in the Existing DDA.

On or about January 16, 2019, the Developer assigned all of its rights and obligations set forth in the Existing DDA to Lynwood Family Apartments LP and assumed all of such rights and obligations concerning the aforesaid development of the Project on the Property.

523
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

61 NOTE 5 NOTES AND LOANS RECEIVABLES (CONTINUED)

B. Housing Authority (Continued)

• Atlantic Housing Development (Continued)

On May 18, 2021, Lynwood Family Apartments LP issued a replacement promissory note amounting to $17,000,000 to the Housing Authority subject to the terms and conditions set forth in the replacement promissory note. The outstanding principal balance under this replacement promissory note bears 0.25% simple interest per annum.

On January 21, 2025, the Housing Authority and the Lynwood Family Apartments LP agreed to extend the term of the replacement promissory note from 69 to 99 years from the date of issuance of a certificate of occupancy by the City for the Completion of the Project.

In addition, the Lynwood Family Apartments LP deposited $2,500,000 in additional construction funds into a newly established construction escrow account, which shall be used and disbursed to pay eligible project costs of the Project.

During the year ended June 30, 2025, the Lynwood Family Apartments LP drew down total of $3,136,445 out of the replacement promissory note and the construction escrow account, fully utilizing the allowable principal available for future draws as of June 30, 2025.

Below is the summary of the loans receivable of the Housing Authority as of June 30, 2025:

Principal
Habitat for Humanity
3076 Redwood $ 30,126
5525 Clark 2,905
10-unit Low-income Project 453,197
3254 Palm Avenue 243, 100
Developer Loan
11300 Atlantic Avenue 379,709
Atlantic Housing Development 17,000,000
Notes and loans receivables, net $ 18,109,037
524
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

62 NOTE 5 NOTES AND LOANS RECEIVABLES (CONTINUED)

C. General Fund
On May 27, 2025, the City and Hub Cities Consortium, a California joint powers authority, entered into a loan agreement totaling $40,833. The loan is repayable in monthly installments of $1,135, beginning January 1, 2026, and continuing through December 31, 2029. Interest will accrue on the outstanding principal at a fixed annual rate equal to the maximum rate permitted under California law.

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 28 years. The incremental borrowing rates used ranged from 1.887% to 5.000%. For the year ended June 30, 2025, the City recognized $361,843 in lease revenue and $186,745 in interest revenue. The outstanding receivables at June 30, 2025 amounted to $5,109,888.

The future payments required for these leases, including interest, are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 149,420 $ 180,643 $ 330,063
2027 157,709 173,789 331,498
2028 166,420 166,559 332,979
2029 175,567 158,935 334,502
2030 185,173 150,898 336,071
2031 - 2035 1,104,444 617,398 1,721,842
2036 - 2040 674,728 424,998 1,099,726
2041 - 2045 1,263,525 295,343 1,558,868
2046 - 2050 1,153,461 105,757 1,259,218
2051 - 2052 79,441 1,051 80,492
$ 5,109,888 $ 2,275,371 $ 7,385,259
Governmental Activities
525
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

63 NOTE 7 INTERFUND ACTIVITIES

A. Due To/From Other Funds
The following is a summary of interfund balances as of June 30, 2025:

Current interfund receivables and payables were due to (1) short -term borrowings to eliminate negative cash balances, and (2) transfers to cover certain project costs.

B. Advances from Fiduciary Fund
Advances from the Successor Agency to the City (General Fund) at June 30, 2025 were as follows:

The advance is the loan from the former Lynwood Redevelopment Agency “LRA” to the City in the amount of $957,380 at June 30, 2025.

Amount
Major Fund:

General Fund
Landscape Maintenance
Special Revenue Fund $ 9,922,808
Grants Special
Revenue Fund 14,219,230
Nonmajor Governmental
Funds 9,468,810
Internal Service Funds 461,597
$ 34,072,445
Receivable Fund Payable Funds
Amount
Fiduciary Fund:

Successor Agency Private-
Purpose Trust Fund General Fund $ 957,380
Receivable Fund Payable Fund
526
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

64 NOTE 7 INTERFUND ACTIVITIES (CONTINUED)

C. Transfers
The following is a summary of Interfund transfers for the year ended June 30, 2025:

With Council approval, resources may be transferred from one City fund to another.

Transfers of $8 ,190 to the General Fund consist of $3,190 from the Impact Fees Special Revenue Fund, and $5,000 from Public Art Special Revenue F und were to cover City-wide expenditures.

Transfers of $19,114,379 to the Capital Improvement Capital Projects Fund consist of $401,431 from the General Fund, $3,542,378 from the Grants Special Revenue Fund, $10,164,508 from Nonmajor Governmental Funds, $3,515,238 from Water and Sewer Enterprise Fund, and $1,490,824 from American Rescue Plan Special Revenue Fund to cover various capital projects.

Amount
Major Funds:

General Fund Nonmajor Governmental
Funds $ 8,190
Capital Improvement
Capital Projects Fund General Fund 401,431
Grants Special
Revenue Fund 3,542,378
Nonmajor Governmental
Funds 10,164,508
Water and Sewer
Enterprise Fund 3,515,238
American Rescue Plan
Special Revenue Fund 1,490,824
Nonmajor Governmental
Funds General Fund 891,112
Nonmajor Governmental
Funds 1,863,533
Internal Service Funds Retirement Special
Revenue Fund 1,757,637
$ 23,634,851
Transfers In Transfers Out
527
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

65 NOTE 7 INTERFUND ACTIVITIES (CONTINUED)

C. Transfers (Continued)
Transfers of $891,112 from the General Fund to Nonmajor Governmental Funds consist of $ 480,628 for debt service payments and $410,484 for street sweeping services.

A transfer of $1,863,533 from Prop A Special Revenue Fund to Transportation Special Revenue Fund was for transit costs.

A transfer of $1,757,637 from the Retirement Special Revenue Fund to the Self - Insurance Internal Service Fund was to cover the retirees’ medical costs.

NOTE 8 CAPITAL ASSETS

A. Governmental Activities
Summary of changes in capital asset s for the governmental activit ies for the year ended June 30, 2025 was as follows:

Beginning Ending
Balance A dditions Deletions Balance
Capital assets, not being depreciated
Land $ 54,507,738 $ - $ 986,359 $ - $ 55,494,097 Rights of way 22,904,315 - (690,930) - 22,213,385 Trees 287,627 - - - 287,627 Construction in progress 15,017,675 20,013,587 (1,025,474) (9,489,828) 24,515,960 Total capital assets, not being depreciated 92,717,355 20,013,587 (730,045) (9,489,828) 102,511,069 Capital assets, being depreciated and amortized
Buildings and improvements 39,307,298 - 4,774,327 44,081,625 Machinery and equipment 8,398,116 162,021 (987,240) - 7,572,897 Infrastructure
Roadways, curbs and gutters 102,058,467 - 839,605 3,667,545 106,565,617 Sidewalks and medians 11,325,731 - (46,211) - 11,279,520 Other street appurtenances 13,079,004 - (1,965,008) 1,047,956 12,161,952 Right-to-use lease assets 686,060 853,982 - - 1,540,042 Right-to-use subscription assets 325,930 81,614 (31,899) - 375,645 Total capital assets, being depreciated
and amortized 175,180,606 1,097,617 ( 2,190,753) 9,489,828 183,577,298 Less accumulated depreciation and amortization for
Buildings and improvements (10,349,452) (878,090) 58,785 - (11,168,757) Machinery and equipment (6,985,720) (159,459) 1,464,707 - (5,680,472) Infrastructure
Roadways, curbs and gutters (32,780,455) (2,343,368) (68,947) - (35,192,770) Sidewalks and medians (5,098,687) (154,169) 582,726 - (4,670,130) Other street appurtenances (3,941,785) (192,356) (326,609) - (4,460,750) Right-to-use lease assets (154,411) (212,407) - - (366,818) Right-to-use subscription assets (129,418) (97,055) 31,899 - (194,574) Total accumulated depreciation and amortization (59,439,928) (4,036,904) 1,742,561 - (61,734,271) Total capital assets, being depreciated
and amortized 115,740,678 (2,939,287) ( 448,192) 9,489,828 121,843,027 Governmental activities capital assets, net $ 208,458,033 $ 17,074,300 $ (1,178,237) $ - $ 224,354,096

Reclassifications
528
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

66 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:

B. Business-Type Activities
Summary of changes in capital asset for the business-type activity (Water and Sewer) for the year ended June 30, 2025 was as follows:

Depreciation and amortization expenses were charged to water and sewer function of the City's business-type activities in the amount of $360,306.

General government $ 728,460
Public safety 57,620
Public works 2,730,934
Community development 35,897
Parks and recreation 247,994
Internal service fund 235,999
Total $ 4,036,904
Beginning Ending
Balance A dditions Deletions

Reclassifications Balance
Capital assets, not being depreciated
Land $ 36, 341 $ - $ - $ - $ 36,341 Construction in progress 5,493,452 109,226 - (2,081,206) 3,521,472 Total capital assets, not being depreciated 5,529,793 109,226 - (2,081,206) 3,557,813 Capital assets, being depreciated and amortized
Buildings and improvements 1,137,932 - (1,005,453) 288,774 421,253 Machinery and equipment 1,399,374 - (116,002) - 1,283,372 Infrastructure 28,049,728 - 396,323 1,792,432 30,238,483 Right-to-use lease assets 5,534 - - - 5,534 Total capital assets, being depreciated
and amortized 30,592,568 - (725,132) 2,081,206 31,948,642 Less accumulated depreciation for
Buildings and improvements (128,379) (7,874) 100,546 - (35,707) Machinery and equipment (821,636) (48,189) 148,600 - (721,225) Infrastructure (10,819,254) (302,936) - - (11,122,190) Right-to-use lease assets (3,920) (1,307) - - (5,227) Total accumulated depreciation and amortization (11,773,189) (360,306) 249,146 - (11,884,349) Total capital assets, being depreciated
and amortized 18,819,379 (360,306) (475,986) 2,081,206 20,064,293 Business-type activities capital assets, net $ 24,349,172 $ (251,080) $ (475,986) $ - $ 23,622,106 529
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

67 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, 2025 was as follows:

Debt service payments for governmental activities are made from Debt Service Fund.

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, 2025 is $ 5,591,000. The claims payable is typically liquidated from the General Fund.

Lease Payable
The City entered into leases for 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 terms of the agreements.

Due in
Beginning Ending Due Within More Than
Balance Increases Decreases Balance One Year One Year
Compensated absences* $ 1, 497,694 $ 401,782 $ - $ 1,899,476 $ 474,869 $ 1,424,607 Claims payable 5,030,000 561,000 - 5,591,000 1,322,857 4,268,143 Lease payable 531,576 853,982 (194,204) 1,191,354 283,937 907,417 Subscription liabilities 119,030 81,614 (82,249) 118,395 51,913 66,482 Direct borrowing
CEC Loan 1,569,744 - (118,507) 1,451,237 119,695 1,331,542 Vehicle Financing 26,099 - (26,099) - - - Revenue bonds and certificates
2012 Sales Tax Revenue Certificates 4,610,000 - (245,000) 4,365,000 255,000 4,110,000 2017 Lease Revenue Refunding Bonds 5,258,721 - (270,821) 4,987,900 279,895 4,708,005 2018 Lynwood Housing Revenue Bonds 11,640,000 - (1,755,000) 9,885,000 1,825,000 8,060,000 2019A Measure M Sales Tax Bond 12,020,000 - (125,000) 11,895,000 130,000 11,765,000 2019B Measure R Sales Tax Bond 1,850,000 - (95,000) 1,755,000 95,000 1,660,000 2019A PFA Lease Revenue Refunding Bonds 6,820,000 - (420,000) 6,400,000 435,000 5,965,000 2019B PFA Lease Revenue Refunding Bonds 13,955,000 - - 13,955,000 - 13,955,000 2020 PFA Lease Revenue Bonds 12,925,000 - (585,000) 12,340,000 595,000 11,745,000 Subtotal revenue bonds and certificates 69,078,721 - (3,495,821) 65,582,900 3,614,895 61,968,005 Add: Premium 893,002 - (40,481) 852,521 - 852,521 Less: Discount (573,984) - 54,709 (519,275) - (519,275) Total revenue bonds and certificates 69,397,739 - (3,481,593) 65,916,146 3,614,895 62,301,251 Governmental activities $ 78,171,882 $ 1,898,378 $ (3,902,652) $ 76,167,608 $ 5,868,166 $ 70,299,442 *The change in compensated absences above is a net change for the year. 530
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

68 NOTE 9 LONG-TERM LIABILITIES

A. Governmental Activities (Continued)

Lease Payable (Continued)
Principal and interest payments to maturity at June 30, 2025 are as follows:

Subscription Liabilities
The City entered into subscription agreements with various vendors for software. The terms of the agreements range from 24 months to 60 months. The interest rates used were between 2.145% to 3.018% based on the terms of the agreements.

Principal and interest payments to maturity at June 30, 2025 are as follows:

CEC Loan
On December 10, 2019, the City and the California Energy Resources Conservation and Development Commission (the “Energy Commission”) entered into a loan agreement (“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 Commission and will bear simple interest at an annual rate of 1%. Payment of interest will be due at the time of the 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. As of June 30, 202 5, the loans payable amounted to $1,451,237.

Year Ending June 30, Principal Interest Total
2026 $ 283,937 $ 40,739 $ 324,676
2027 291,835 29,234 321,069
2028 303,024 17,229 320,253
2029 213,912 6,675 220,587
2030 98,646 1,110 99,756
Totals $ 1,191,354 $ 94,987 $ 1,286,341
Year Ending June 30, Principal Interest Total
2026 $ 51,913 $ 3,141 $ 55,054
2027 55,298 1,299 56,597
2028 11,184 60 11,244
Totals $ 118,395 $ 4,500 $ 122,895
531
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

69 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

A. Governmental Activities (Continued)

CEC Loan (Continued)
The debt service schedule for CEC loan is as follows:

City of Lynwood Measure R Sales Tax Revenue Certificates, Series 2012 On December 5, 2012, the City issued $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 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, 2025 was $4,365,000.

Future debt service payments are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 119,695 $ 14,215 $ 133,910
2027 120,895 13,015 133,910
2028 122,076 11,834 133,910
2029 123,331 10,579 133,910
2030 124,568 9,343 133,911
2031 - 2035 641,804 27,748 669,552
2036 198,868 1,997 200,865
Totals $ 1,451,237 $ 88,731 $ 1,539,968
Year Ending June 30, Principal Interest Total
2026 $ 255,000 $ 139,706 $ 394,706
2027 260,000 132,694 392,694
2028 270,000 124,894 394,894
2029 275,000 116,794 391,794
2030 285,000 108,544 393,544
2031 - 2035 1,570,000 402,231 1,972,231
2036 - 2039 1,450,000 124,369 1,574,369
Totals $ 4,365,000 $ 1,149,232 $ 5,514,232
532
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

70 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 has been 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. Principal matures each September 1 beginning in 2017 and maturing in 2035. The refunding resulted in economic gain in the amount of $60,285 and savings in debt service in the amount of $74,625. The principal balance outstanding at June 30, 2025 was $4,987,900.

Future debt service payments are as follows:

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 the provisions of Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code, a resolution adopted by the Housing Authority. The Housing Authority issued the Bonds to satisfy the terms of a settlement agreement relating to Rogel, et al. v. State of California Department of Finance, et al., fund 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 on September 1, 2029. Interest rates on the bonds vary between 3.120% and

3.980%. The principal balance outstanding at June 30, 2025 , including unamortized discount of $154,932, was $9,730,068.

Year Ending June 30, Principal Interest Total
2026 $ 279,895 $ 180,344 $ 460,239
2027 290,308 169,738 460,046
2028 303,682 158,690 462,372
2029 308,629 147,301 455,930
2030 320,372 135,601 455,973
2031 - 2035 2,850,925 403,088 3,254,013
2036 634,089 - 634,089
Totals $ 4,987,900 $ 1,194,762 $ 6,182,662
533
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

71 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:

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, Series 2019A (“2019A Bonds”) to finance a portion of the cost associated with certain transportation projects of the City, fund a reserve account, and pay the cost of issuance of the bonds. The 2019A Bonds are a limited obligation of the Authority and are payable exclusively from the Pledged Measure M Receipts and any other funds pledged under the agreement.

The interest rate is 4.0% per annum and will be payable on June 1, and December 1 of each year commencing June 1, 2019 to 2048. The principal balance outstanding at June 30, 2025, including an unamortized premium of $736,289, was $12,631,289.

Future debt service payments for 2019A Bonds are as follows:

Year Ending June 30, Principal Int erest Total
2026 $ 1,825,000 $ 358,900 $ 2,183,900
2027 1,900,000 284,400 2,184,400
2028 1,975,000 206,900 2,181,900
2029 2,050,000 126,400 2,176,400
2030 2,135,000 42,700 2,177,700
Subtotals 9,885,000 1,019,300 10,904,300
Less: Discount (154,932) - (154,932) Totals $ 9,730,068 $ 1,019,300 $ 10,749,368
Year Ending June 30, Principal Interest Total
2026 $ 130,000 $ 530,300 $ 660,300
2027 135,000 525,100 660,100
2028 140,000 518,350 658,350
2029 150,000 511,350 661,350
2030 155,000 503,850 658,850
2031 - 2035 895,000 2,401,950 3,296,950
2036 - 2040 1,735,000 2,223,556 3,958,556
2041 - 2045 4,970,000 1,641,675 6,611,675
2046 - 2048 3,585,000 382,725 3,967,725
Subtotals 11,895,000 9,238,856 21,133,856
Add: Premium 736,289 - 736,289
Totals $ 12,631,289 $ 9,238,856 $ 21,870,145
534
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

72 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 the 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 a limited obligation of the Authority and are payable 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 3.0% and 5.0%. The principal balance outstanding at June 30, 2025, including an unamortized premium of $116,232, was $1,871,232.

Future debt service payments for the 2019B Bonds are as follows:

Lynwood Public Financing Authority Lease Revenue Refunding Bonds, Series 2019A and B
On November 26, 2019, the Lynwood Public Financing 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 balance outstanding at June 30, 2025 including unamortized discount of $8,820, was $6,391,180.

Year Ending June 30, Principal Interest Total
2026 $ 95,000 $ 69,863 $ 164,863
2027 100,000 66,063 166,063
2028 100,000 62,063 162,063
2029 110,000 58,063 168,063
2030 110,000 52,563 162,563
2031 - 2035 635,000 180,063 815,063
2036 - 2039 605,000 52,425 657,425
Subtotals 1,755,000 541,103 2,296,103
Add: Premium 116,232 - 116,232
Totals $ 1,871,232 $ 541,103 $ 2,412,335
535
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

73 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

A. Governmental Activities (Continued)

Lynwood Public Financing Authority Lease Revenue Refunding Bonds, Series 2019A and B (Continued)
Lease Revenue Bonds, 2010 Series A has been fully refunded on September 1, 2020.

These advance refunding resulted in an economic gain (difference between the present value of the debt service payments on the new and old debt) of $2,286,454 and a reduction of total debt service payments of $3,028,954.

Future debt service payments for the Series 2019A Bonds are as follows:

On November 26, 2019, the Lynwood Public Financing Authority issued the $13,955,000 Lynwood Public Financing Authority Lease Revenue Refunding Bonds Series 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 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 2049. Interest rates on the bonds vary between

2.750% and 3.150%. Principal matures each October 1 beginning October 1, 2036 and maturing on October 1, 2049. The principal balance outstanding at June 30, 2025, including unamortized discount of $267,249, was $13,687,751.

Year Ending June 30, Principal Interest Total
2026 $ 435,000 $ 216,164 651,164
2027 445,000 203,841 648,841
2028 455,000 190,713 645,713
2029 475,000 176,605 651,605
2030 490,000 161,485 651,485
2031 - 2035 1,660,000 623,320 2,283,320
2036 - 2040 1,995,000 284,266 2,279,266
2041 445,000 8,591 453,591
Subtotals 6,400,000 1,864,985 8,264,985
Less: Discount (8,820) - (8,820) Totals $ 6,391,180 $ 1,864,985 $ 8,256,165
536
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

74 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 2019B Bonds are as follows:

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 improvements and to fund a debt service reserve fund for the bonds, and to pay costs of issuance of the bonds. Interest in the bonds is payable semiannually on April 1 and October 1 of each year, commencing April 1, 2021. Interest rates on the bonds vary between 1.793% and 4.195%. The principal matures each October 1st, beginning October 1, 2023 and maturing on October 1, 2040. The principal balance outstanding at June 30, 2025, including unamortized discount of $88,274, was $12,251,726.

Year Ending June 30, Principal I nterest Total
2026 $ - $ 415,900 $ 415,900
2027 - 415,900 415,900
2028 - 415,900 415,900
2029 - 415,900 415,900
2030 - 415,900 415,900
2031 - 2035 - 2,079,500 2,079,500
2036 - 2040 2,265,000 1,954,300 4,219,300
2041 - 2045 5,170,000 1,402,500 6,572,500
2046 - 2050 6,520,000 500,250 7,020,250
Subtotals 13,955,000 8,016,050 21,971,050
Less: Discount (267,249) - (267,249) Totals $ 13,687,751 $ 8,016,050 $ 21,703,801
537
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

75 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

A. Governmental Activities (Continued)

Lynwood Public Financing Authority Lease Revenue Bonds Series 2020A (Continued)
Future debt service payments for the Lynwood Public Financing Authority Lease Revenue Bonds Series 2020A are as follows:

B. Business-Type Activities
Summary of changes in business-type activities long-term debt for the year ended June 30, 2025 is as follows:

Year Ending June 30, Principal Interest Total
2026 $ 595,000 $ 450,438 $ 1,045,438
2027 610,000 434,811 1,044,811
2028 630,000 417,166 1,047,166
2029 645,000 397,526 1,042,526
2030 665,000 375,846 1,040,846
2031 - 2035 3,705,000 1,497,110 5,202,110
2036 - 2040 4,480,000 695,201 5,175,201
2041 1,010,000 21,185 1,031,185
Subtotals 12,340,000 4,289,283 16,629,283
Less: Discount (88,274) - (88,274) Totals $ 12,251,726 $ 4,289,283 $ 16,541,009
Due in
Beginning Ending Due Within More Than
Balance Increases Decreases Balance One Year One Year
Compensated absences $ 307,177 $ 214,608 $ (30,547) $ 491,238 $ 122,810 $ 368,428 Lease payable 1,560 - (1,337) 223 223 - Revenue bonds
2014A Revenue Refunding Bonds 3,285,000 - (270,000) 3,015,000 280,000 2,735,000 2017A Revenue Refunding Bonds 3,215,000 - (610,000) 2,605,000 630,000 1,975,000 2017B Revenue Refunding Bonds 17,400,000 - (70,000) 17,330,000 70,000 17,260,000 2020A Enterprise Revenue Bonds (Green Bonds) 19,705,000 - (105, 000) 19,600,000 110,000 19,490,000 Subtotal revenue bonds 43,605,000 - (1,055,000) 42,550,000 1,090,000 41,460,000 Less: Discount (230,075) - 12,180 (217,895) - (217,895) Total revenue bonds 43,374,925 - (1,042,820) 42,332,105 1,090,000 41,242,105 Business-type activities $ 43,683,662 $ 214,608 $ (1,074,704) $ 42,823,566 $ 1,213,033 $ 41,610,533 538
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

76 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

B. Business-Type Activities (Continued)

Lease Payable
The City has entered into leases for machine uses. The terms of the agreements 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, 2025 are as follows:

Lynwood Utility Authority 2014 Series A Enterprise Revenue Bonds On January 8, 2014, the Lynwood Utility Authority issued $5,660,000 Enterprise 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 covenanted that the net revenues in each year 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 entire balance of the 2003 Enterprise Revenue Bonds in the amount of $5,480,000. As a result, the entire 2003 Enterprise Revenue Bonds were defeased and the liability has been removed from the Statement of Net Position in the accompanying financial 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, 2025 was $3,015,000.

Future debt service payments are as follows:

Year Ending June 30, Principal Interest Total
2026 $ 223 $ 1 $ 224
Year Ending June 30, Principal Interest Total
2026 $ 280,000 124,520 $ 404,520
2027 295,000 112,956 407,956
2028 310,000 100,772 410,772
2029 320,000 87,969 407,969
2030 335,000 74,753 409,753
2031 - 2034 1,475,000 155,495 1,630,495
Totals $ 3,015,000 656,465 $ 3,671,465
539
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

77 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 issued $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 defeased 2009 S eries 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.

Interest 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 and sewer enterprise funds 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, 2025 was $2,605,000.

Future debt service payments are as follows:

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 average 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.

Year Ending June 30, Principal Interest Total
2026 $ 630,000 $ 63,041 $ 693,041
2027 640,000 47,795 687,795
2028 660,000 32,307 692,307
2029 675,000 16,335 691,335
Totals $ 2,605,000 $ 159,478 $ 2,764,478
540
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

78 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 net 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 annual amount of debt service payments on these bonds and any other parity debt.

The principal balance outstanding at June 30, 2025, including unamortized discount of $78,204, was $17,251,796.

Future debt service payments are as follows:

Lynwood Utility Authority 2020 Series A Enterprise Revenue Bonds (Green 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, purchase a municipal bond insurance policy and establish a reserve fund surety for the Green Bonds, and to pay the cost of the issuance of the 2020 Series A Enterprise Revenue Bonds (Green Bonds).

The serial bonds carry an interest rate of 4% and mature June 1, 2050. Interest is payable semi-annually every December 1 and June 1 beginning December 1, 2020.

Year Ending June 30, Principal I nterest Total
2026 $ 70,000 $ 589,706 $ 659,706
2027 75,000 586,906 661,906
2028 80,000 583,906 663,906
2029 80,000 580,706 660,706
2030 425,000 577,506 1,002,506
2031 - 2035 2,840,000 2,577,131 5,417,131
2036 - 2040 5,095,000 1,951,638 7,046,638
2041 - 2045 5,980,000 1,067,263 7,047,263
2046 - 2047 2,685,000 136,688 2,821,688
Subtotals 17,330,000 8,651,450 25,981,450
Less: Discount (78,204) - (78,204) Totals $ 17,251,796 $ 8,651,450 $ 25,903,246
541
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

79 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

B. Business-Type Activities (Continued)

Lynwood Utility Authority 2020 Series A Enterprise Revenue Bonds (Green Bonds) (Continued)
The bonds will be paid from, and secured by, the new net 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 annual amount of debt service payments on these bonds and any other parity debt.

The principal balance outstanding at June 30, 2025, including unamortized discount of $139,691, was $19,460,309.

Future debt service payments are as follows:

C. Fiduciary Activities
Summary of changes in Successor Agency’s long-term debt is as follows:

Year Ending June 30, Principal I nterest Total
2026 $ 110,000 $ 716,306 $ 826,306
2027 115,000 711,906 826,906
2028 110,000 707,306 817,306
2029 120,000 702,906 822,906
2030 470,000 698,106 1,168,106
2031 - 2035 2,675,000 3,190,731 5,865,731
2036 - 2040 3,225,000 2,639,869 5,864,869
2041 - 2045 3,830,000 2,032,706 5,862,706
2046 - 2050 8,945,000 1,146,950 10,091,950
Subtotals 19,600,000 12,546,786 32,146,786
Less: Discount (139,691) - (139,691) Totals $ 19,460,309 $ 12,546,786 $ 32,007,095
Due in
Beginning Ending D ue Within More Than
Balance Increases Decreases Balance One Year One Year
2022 Tax Allocation Refunding Bonds $ 8,820,000 $ - $ (1,115,000) $ 7,705,000 $ 1,115,000 $ 6,590,000 Total $ 8,820,000 $ - $ (1,115,000) $ 7,705,000 $ 1,115,000 $ 6,590,000 542
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

80 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

C. Fiduciary Activities (Continued)

2022 Tax Allocation Refunding Bonds
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 $10,275,000 to refund all outstanding Tax Allocation Bond issues of both the former Lynwood Redevelopment Agency and the Successor Agency with the prior unexpended proceeds as following:

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 with the remaining $5,406,696 to become eligible for expenditure once the Successor Agency files its Last and Final Recognized Obligation Payment Schedule.

The 2011 Taxable Tax Allocation Bonds, Series A and B were fully refunded on December 9, 2022. The 2013 Tax Allocation Refunding Bonds, Project Area A, and 2013 Tax Allocation Refunding Bonds, Alameda Project Area outstanding balances at June 30, 2023 were $4,710,000 and $170,000, respectively and were fully redeemed on September 1, 2023 and September 1, 2024, respectively. The refunding resulted in an economic gain (difference between the present value of the debt service payments on the new and old debt) of $964,987 and a reduction of total debt service payments of $19,079,301.

Interest on the bonds will be payable semiannually on March 1 and September 1 of each year, commencing March 1, 2023, and at a rate from 5.090% to 5.900%. Principal payment on the bonds commences on March 1, 2023 and matures on September 1, 2031.

Outstanding
Debt
Refunded
Prior
Unexpected
Proceeds
2011 Tax Allocation Bonds, Series A $ 12,980,000 $ 11,358,844 2011 Tax Allocation Bonds, Series B 3,810,000 355,665 2013 Tax Allocation Refunding Bonds, Project Area A 4,710,000 601,651 2013 Tax Allocation Refunding Bonds, Alameda Project Area 170,000 - Total $ 21,670,000 12,316,160
Proceeds from the new debt issued 10,275,000
Total funds available for the refunding and associated costs $ 22,591,160 543
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

81 NOTE 9 LONG-TERM LIABILITIES (CONTINUED)

C. Fiduciary Activities (Continued)

2022 Tax Allocation Refunding Bonds (Continued)
The principal balance outstanding at June 30, 2025 was $7,705,000.

Future debt service payments are as follows:

NOTE 10 RISK MANAGEMENT

The City is a member of the 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, property and special events coverage. Currently , there are fourteen member cities. ICRMA maintains an agreement on management services with Bickmore Risk Services to provide staff services to the Authority.

A. Liability Program
ICRMA provides coverage on an occurrence basis to Members of the Liability Program between the Members' Self -Insured Retentions (SIR) and $ 2 million. The City 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.

Year Ending June 30, Principal Interest Total
2026 $ 1,115,000 $ 399,077 $ 1,514,077
2027 1,165,000 339,214 1,504,214
2028 1,050,000 279,707 1,329,707
2029 1,105,000 220,293 1,325,293
2030 1,030,000 160,286 1,190,286
2031 - 2032 2,240,000 133,385 2,373,385
Totals $ 7,705,000 $ 1,531,962 $ 9,236,962
544
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

82 NOTE 10 RISK MANAGEMENT (CONTINUED)

A. Liability Program (Continued)
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 insurance 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:

B. Workers’ Compensation Program
The Workers' Compensation Program combines self -funding and group purchased excess insurance. Sixteen ICRMA Members participate in this program. Members gain lower costs by combining 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 difference 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.

C. All Risk Property Program
The City of Lynwood participates in the Property Insurance Program including auto, earthquake, and flood insurance. The property coverage limit is $250 million per occurrence other 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 participates 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.

ICRMA Reinsurer
Public Officials Errors & $2,000,000 each occurrence* $20,000,000 each occurrence & Omission Liability annual aggregate excess of
ICRMA
Employment Practices Liability $2,000,000 each occurrence* $20,000,000 each occurrence & annual aggregate excess of
ICRMA
Other Liability $2,000,000 each occurrence* $30,000,000 each occurrence excess of ICRMA
545
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

83 NOTE 10 RISK MANAGEMENT (CONTINUED)

C. All Risk Property Program (Continued)
Due to the cost of earthquake insurance, the 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, 2025 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, 2025:

As of June 30, 2025, the workers' compensation claims payable in the amount of $3,990,000 and the general liability claims payable in the amount of $1,601,000 were reported in the Self-Insurance Internal Service Fund.

During the past three fiscal (claim) years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from the prior year.

Workers' General
Compensation Liability Total
Claims and judgements at June 30, 2022 $ 3,157,000 $ 2,287,000 $ 5,444,000 Claims incurred and changes in estimates 256,770 (437,057) (180,287) Claim payments (275,770) (163,943) (439,713)
Claims and judgements at June 30, 2023 3,138,000 1,686,000 4,824,000 Claims incurred and changes in estimates 686,236 604,670 1,290,906 Claim payments (463,236) (621,670) (1,084,906) Claims and judgements at June 30, 2024 3,361,000 1,669,000 5,030,000 Claims incurred and changes in estimates 1,207,214 485,865 1,693,079 Claim payments (578,214) (553,865) (1,132,079) Claims and judgements at June 30, 2025 $ 3,990,000 $ 1,601,000 $ 5,591,000 546
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

84 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, 2025 and pension expenses for the year then ended:

Governmental Business-type
A
ctivities Activities Total
Deferred outflows of resources
Pension contributions subsequent to measurement date
Miscellaneous $ 3,498,512 $ 878,331 $ 4,376,843 Safety 857,629 - 857,629
Total contribution after measurement date 4,356,141 878,331 5,234,472 Changes of assumptions
Safety 196,420 - 196,420
Total difference between assumptions 196,420 - 196,420 Differences between expected and actual experience
Miscellaneous 309,766 77,770 387,536 Safety 650,605 - 650,605
Total difference between expected and actual experience 960,371 77,770 1,038,141 Differences between projected and actual investment earnings Miscellaneous 1,098,103 275,689 1,373,792 Safety 385,342 - 385,342
Total differences between projected and
actual investment earnings 1,483,445 275, 689 1,759,134 Differences between employer's contributions and
proportionate share of contributions
Safety 480,278 - 480,278
Total deferred outflows of resources $ 7,476,655 $ 1,231,790 $ 8,708,445 Net pension liability
Miscellaneous $ 27,518,881 $ 6,908,855 $ 34,427,736 Safety 7,972,236 - 7,972,236
Total net pension liability $ 35,491,117 $ 6,908,855 $ 42,399,972 Deferred inflows of resources
Differences between expected and actual experience
Safety $ 21,154 $ - $ 21,154 Change in employer's proportion
Safety 566,290 - 566,290
-
Total deferred inflows of resources $ 587,444 $ - $ 587,444 Pension expenses (income)
Miscellaneous $ 3,791,391 $ 951,868 $ 4,743,259 Safety 1,234,982 - 1,234,982
Total pension expenses $ 5,026,373 $ 951,868 $ 5,978,241 547
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

85 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 Retirement Plan (Miscellaneous Plan) and Fire Retirement Plan (Safety Plan). Each plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. 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 department) of CalPERS have ceased to be employed by the fire department of the City and have been employed 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 pension benefits from the City's Safety Plan with CalPERS. The City of Lynwood’s Safety Plan is currently part of the CalPERS Safety Risk Pool, a cost - sharing multiple-employer defined benefit plan.

548
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

86 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

A. General Information about the Pension Plans (Continued)

Benefit Provided
CalPERS provides retirement and disability benefits, annual cost -of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by the State statute and City resolution as follows:

Participants are eligible for Service Retirement upon the attainment of age 50 with at least 5 years of credited service (total service across all CalPERS employers, and with certain 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 the attainment of age 52 with at least 5 years of service.

Prior to On or After
Hire Date 1/1/2013 1/1/2013
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 8.00% 5.75%
Required Contribution during
Measurement Period 13.04% 13.04%
Safety
Prior to
Hire Date 1/1/2013
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 0.00%
Required Employee Contribution Rates 0.00%
Required Contribution during
Measurement Period 0.00%
Miscellaneous
549
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

87 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

A. General Information about the Pension Plans (Continued)

Benefit Provided (Continued)
Participants become eligible for a deferred 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 certain 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 (55 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 Retirement if he or she becomes disabled and has at least 5 years of credited service (total service across all CalPERS 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 allowance 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 member’s survivor who is eligible for any 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 monthly 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 divided 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).

550
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

88 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

A. General Information about the Pension Plans (Continued)

Employees Covered by Benefit Terms
At June 30, 2023, the valuation date, the following employees were covered by the benefit terms:

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 determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Net Pension Liability

Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on following actuarial methods and assumptions:

Miscellaneous Safety
Ac
tive Employees 104 0
Transferred and terminated employees 191 3
Retired Employees and Beneficiaries 262 99
Total 557 102
Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table1 Derived using CalPERS’ Membership Data for all Funds.

Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
1The mortality table used was developed based on CalPERS- specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
551
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

89 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

B. Net Pension Liability (Continued)

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

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

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined.

Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Assumed
Asset
Asset Class1 Allocation
Global Equity - Cap-weighted 30.00 % 4.54 %
Global Equity - Non Cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage -5.00 -0.59
100.00 %
2Figures are based on the 2021 Asset Liability Management study.

Real
Return 1,2
1An expected inflation of 2.30% used for this period.
552
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

90 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City’s miscellaneous plan recognized over the measurement period.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the City’s safety plan’s proportionate share of the risk pool collective net pension liability over the measure period.

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position ( Asset)
Balance at June 30,2023
(Measurement Date) $ 127,315,324 $ 90,862,625 $ 36,452,699 Changes in the Year:

Service Cost 1,782,373 - 1,782,373
Interest on the Total
Pension Liability 8,695,080 - 8,695,080 Differences Between
Expected and Actual
Experience 818,132 - 818,132
Contributions - Employer - 4,001,008 (4,001,008) Contributions - Employee - 677,534 (677,534) Net Investment Income - 8,715,941 (8,715,941) Administrative Expense - (73,935) 73,935 Benefit Payments, Including
Refunds
of Employee
Contributions
(6,017,967) (6,017,967) -
Net Changes 5,277,618 7,302,581 (2,024,963)
Balance at June 30,2024
(Measurement Date) $ 132,592,942 $ 98,165,206 $ 34,427,736 Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Ne t Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023
(Measurement Date) $ 17,307,777 $ 9, 103,277 $ 8,204,500 Balance at June 30, 2024
(Measurement Date) 15,718,390 7,746, 154 7,972,236 Net Changes during 2023-2024 (1,589,387) (1,357,123) (232,264) Increase (Decrease)
553
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

91 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) 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 plan’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, 2023 ). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.

(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2024 ). Risk pool FNP at the measurement 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 measurement date denotes the aggregate risk pool’s FNP at June 30, 2024 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2023-2024).

(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 fair 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 equal 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.

554
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

92 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) The City’s proportionate share of the net pension liability was as follows:

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

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, 2025 , the City recognized pension expens e in the amounts of $4,743,259 and $1,234,982 for the miscellaneous plan and safety plan, respectively.

Safety Plan
Proportion - June 30, 2024 0. 10976%
Proportion - June 30, 2025 0.10935%
Change - Decrease -0.00041%
Discount
Rate
Current
Discount
Discount
Rate
-1% (5.90% ) Rate (6.90% ) + 1% (7.90% )
Miscellaneous Plan $ 52,889,237 $ 34,427,736 $ 19,258,869 S
afety Plan $ 10,119,353 $ 7,972,236 $ 6,216,196
Plan's Net Pension Liability (Asset)
555
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

93 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
As of the measurement date of June 30, 2024 , the City has deferred outflows and deferred inflows of resources related to pensions as follows:

The amounts above are net of outflows and inflows recognized as expense in the 2023-2024 measurement period.

Miscellaneous Plan
Deferred D eferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ 4, 376,843 $ -
Differences Between Expected and Actual
Experience 387,536 -
1,373,792 -
Total $ 6,138,171 $ -
Safety Plan
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to
Measurement Date $ 857, 629 $ -
Changes in Assumptions 196,420 -
Differences Between Expected and Actual
Experience 650,605 21,154
385,342 -
480,278
- 566,290
Total $ 2,570,274 $ 587,444
Change in Employer's Proportion
Net Differences Between Projected and Actual
Earnings on Pension Plan Investments
Net Differences Between Projected and Actual
Earnings on Pension Plan Investments
Differences Between Employer's Contributions
Proportionate Share of Contributions
556
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

94 NOTE 11 DEFINED BENEFIT PENSION PLANS (CONTINUED)

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued)
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 t he 2023-2024 measurement period is 1.9 and 3.8 years, which was obtained by dividing the total service years of 1,075 and 630,177 (the sum of remaining service lifetimes of the active employees) by 557 and 166,163 (the total number of participants: active, inactive, and retired), respectively.

$4,376,843 and $857,629 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2026 . Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:

E. Payable to the CalPERS Plan
At June 30, 2025, the City reported a payable of $ 23,412 for the outstanding amount of contributions to the CalPERS Plan required for the year ended June 30, 2025.

F. Pension Tax Override
The City has established Retirement Special Revenue Fund to accumulate property tax levied for the City employees’ retirement benefits.

Miscellaneous Safety
Year ending June 30, Plan Plan
2026 $ 354,300 $ 400,990
2027 2,305,650 878,677
2028 (395,670) (22,620)
2029 (502,952) (131,846)
2030 - -
Thereafter - -
$ 1,761,328 $ 1,125,201
Deferred Outflows (Inflows)
of Resources
557
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

95 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (“OPEB”)

At June 30, 2025, net OPEB liability and related deferred outflows of resources and deferred inflows of resources are as follows:

A. General Information about the OPEB Plan

Plan Description
In addition to the retirement plan described in Note 11, 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 Employers’ Retiree Benefit Trust (“CERBT”) Fund in an agent multiple-employer plan. CalPERS’ audited financial statements can be obtained at CalPERS’ website under Forms and Publications.

Employees Covered by Benefit Term
Eligible participants to the plan at June 30, 2024, the measurement date, the following numbers of participants were covered by the benefit terms:

Contributions
The City contributed $ 2,025,863 during the measurement period and $2,049,764 during the fiscal year ended June 30, 2025.

Governmental Business-type
Activities Activities Total
Deferred outflows of resources
OPEB contributions subsequent to measurement date $ 1,638,350 $ 411,414 $ 2,049,764 Changes of assumptions 910,190 228,512 1,138,702 Differences between expected and actual experience 42,476 10,664 53,140 Differences between projected and actual investment earnings 8,009 2,011 10,020 Total deferred outflows of resources $ 2,599,025 $ 652,601 $ 3,251,626 Net OPEB liability $ 16,325,790 $ 4,099,319 20,425,109 Deferred inflows of resources
Changes of assumptions $ 302,648 $ 76,024 $ 378,672 Differences between expected and actual experience 892,839 224,157 1,116,996 Total deferred inflows of resources $ 1,195,487 $ 300,181 $ 1,495,668 OPEB expenses $ 704,504 $ 176,873 $ 881,377 Inactive currently receiving benefits 103
Inactive entitled to but not yet receiving benefits 38
Active employees 103
Total 244
558
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

96 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (“OPEB”) (CONTINUED)

B. Net OPEB Liability
The June 30, 2023 valuation is used to report the June 30, 2024 total OPEB Liability.

Actuarial Assumptions
The total OPEB liability as of June 30, 2024 measurement date, was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

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 investments 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 asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Changes of Assumptions
There were no changes in assumptions.

Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Actuarial Assumptions:

Contribution Policy Pay retiree pay-go outside the trust Long-Term Expected Rate of Return on Assets 6.25%
20-Year Municipal Bond Rate 3.93%
Disount Rate 6.25%
General Inflation 2.50% annually
Salary Increases Aggregate - 2.75% annually
Mortality Rate Table, Retirement, Disability,
Termination CalPERS 2000- 2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP- 2021 Medical Trend - Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
- Medicare (Non- Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
- Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076
PEMHCA Minimum 3.50% per annum
Healthcare Participation for Future Retirees - Medical - 95% for full benefit, 50% for PEMHCA minimum only benefit
- Others - 55% for dental, 60% for vision, 90% for life 559
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

97 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (“OPEB”) (CONTINUED)

B. Net OPEB Liability (Continued)

Expected Long-Term Rates of Return

C. Changes in Net OPEB Liability
The following table shows the changes in the net OPEB liability recognized over the measurement period:

Expected
Asset Class Target Real Rates
( CERBT Strategy 1) Allocation of Return
Global Equity 49.00% 4.56%
Fixed Income 23.00% 1.56%
TIPS 5.00% -0.08%
Commodities 3.00% 1.22%
Real Estate 20.00% 4.06%
Assumed Long-Term Rate of Inflation 2.50%
Long-Term Expected Rate of Return 6.25%
Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability
Balance at June 30,2023
(Measurement Date) $ 26,904,989 $ 5,816,265 $ 21,088,724 Changes in the Year
Service Cost 399,795 - 399,795
Interest 1,660,544 - 1,660,544
Contribution - Employer - 2,025,863 (2,025,863) Net Investment Income - 703,853 (703,853) Administrative Expenses - (5,762) 5,762 Benefit Payments (1,472,173) (1,472,173) -
Net Changes 588,166 1,251,781 (663,615)
Balance at June 30,2024
(Measurement Date) $ 27,493,155 $ 7,068,046 $ 20,425,109 Increase ( Decrease)
560
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

98 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- percentage point lower (5.25 percent) or 1-percentage-point higher (7.25 percent) than the current discount rate:

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:

D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2025, the City recognized OPEB expenses of $881,377.

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

Discount Rate Current Discount Discount Rate
-1% (5.25% ) Rate (6.25% ) +1% (7.25% )
$ 24,003,486 $ 20,425,109 $ 17,464,329 Plan's Net OPEB Liability
1% Decrease Current Trend 1% Increase
$ 17,146,164 $ 20,425,109 $ 24,448,323 Healthcare Trend Rates
Deferred Deferred
Ou
tflows Inflows
of Resources of Resources
Contributions Subsequent to Measurement Date $ 2,049,764 $ - Differences Between Expected and Actual
Experience 53,140 1,116,996
Changes in Assumptions 1,138,702 378,672
10,020 -
Total $ 3,251,626 $ 1,495,668
Net Differences Between Projected and Actual
Earnings on Pension Plan Investments
561
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

99 NOTE 12 OTHER POSTEMPLOYMENT BENEFITS (“OPEB”) (CONTINUED)

D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued)
The $2,049,764 reported as deferred outflows of resources related to OPEB resulting from the City’s contribution subsequent to the measurement date, will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2026.

Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in future OPEB expense as follow:

NOTE 13 NET INVESTMENT IN CAPITAL ASSETS

The net investment in capital assets for the governmental activities and business-type activities is calculated as follows:

Deferred
Outflows (Inflows)
Year ending June 30, of Resources
2026 $ (690,400)
2027 31,782
2028 286,006
2029 78,806
2030 -
Thereafter -
$ (293,806)
Governmental Business-type
A
ctivities Activities
Total capital assets, net $ 224,354,096 $ 23,622,106
Add: Unamortized loss on defeasance of debt - 126,301 Add: Unspent capital debt proceeds 17,045,267 19,830,908 Less: Retention payable (960,326) -
Less: Capital related debt (68,677,132) (42,332,328)
Net investment in capital assets $ 171,761,905 $ 1,246,987 562
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

100
NOTE 14 FUND BALANCE CLASSIFICATIONS

Fund balances for the governmental funds at June 30, 2025 consisted of the following:

The Budget Stabilization “Rainy day fund” is to be funded by an automatic deposit/transfer of 10 percent of general tax revenues each fiscal year by the transactions and use tax -Measure PS. For Fiscal Year 202 4-25, the City deposited $739,094 into “Rainy day fund”. The City Council may expend funds available from the Budget Stabilization “Rainy day fund” in any single fiscal year if the City Council declares a fiscal hardship by a 4/5 vote, requiring the use of such resources to maintain current levels of City services and programs.

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.

NOTE 16 COMMITMENTS AND CONTINGENCIES

There are other claims against the former Lynwood Redevelopment Agency which have been denied and referred to the Lynwood Redevelopment Agency’s insurance carrier. The Successor Agency believes that none of these claims will exceed insurance coverage.

Capital
Housing Landscape
American
Rescue
Projects
Fund Capital
Nonmajor
Governmenta
Total
Governmenta
General Authority Maintenance Plan Act Grants Retirement Improvement Funds Funds Restricted
Public works $ 1,008,414 $ - $ - $ - $ - $ - $ - $ 12,300,125 $ 13,308,539 Community development - 6,535,836 - - - - 7,173,420 13, 709,256 Retirement - - - - - 6,577,697 - - 6,577,697 Capital projects - - - - - - 1,890,908 15,274,743 17,165,651 Debt service - - - - - - - 4,964,997 4,964,997 Subtotal 1,008,414 6,535,836 - - - 6,577,697 1,890,908 39,713,285 55,726,140 Committed
Rainy day fund 5,244,482 - - - - - - - 5,244,482 OPEB 6,400,000 - - - - - - - 6,400,000 Contingency set aside 5,374,056 - - - - - - - 5,374,056 Urban Farming - - - - - - - 769,218 769,218 Subtotal 17,018,538 - - - - - - 769,218 17,787,756 Assigned
Landscape fund shortfall 9,954,013 - - - - - - - 9,954,013 Refuse 1,641,865 - - - - - - - 1,641,865 Project management 16,416,547 - - - - - - - 16,416,547 Subtotal 28,012,425 - - - - - - - 28,012,425 Unassigned 4,211,034 - ( 9,954,013) - (2,133,833) - (527,526) (8,404,338) Total $ 50,250,411 $ 6,535,836 $ (9,954,013) $ - $ (2,133,833) $ 6,577,697 $ 1,890,908 $ 39,954,977 $ 93,121,983 Special Revenue Funds
563
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

101
NOTE 16 COMMITMENTS AND CONTINGENCIES (CONTINUED)

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 ADJUSTMENTS AND RESTATEMENTS OF BEGINNING BALANCES

Changes to or Within the Financial Reporting Entity
The Retirement Special Revenue Fund was reported as nonmajor fund in the City’s 2024 Annual Financial Report. For the current year, changes in size criteria altered the presentation of this fund.

Correction of Errors in Previously Issued Financial Statements During the year, the City reviewed the classification of loans receivable that had not previously been reported as unavailable revenue in the Housing Fund. Based on their nature, these receivables are now presented as unavailable revenue. Accordingly, the beginning fund balance for the Housing Fund has been restated to reflect this correction. The cumulative effect of the restatement decreased the beginning fund balance by $17,480,846.

The effects of the above changes within the financial reporting entity and correcting the above error are shown in the table below:

Adjustment - Correction of
Juner 30, 2024, Retirement Special Errors in Previously As Previously Revenue Fund Issued Financial June 30, 2024, Reported as major fund Statements As Restated
Governmental Funds
Major Funds
Housing Authority
Special Revenue Fund $ 26,814,837 $ - $ (17,480,846) $ 9,333,991 Retirement Special Revenue Fund - 4,427,233 - 4,427,233 Nonmajor Funds
Other Governmental Funds 50,420,228 (4,427,233) - 45,992,995 $ 77,235,065 $ - $ (17,480,846) $ 59,754,219 Changes to or
Within the Financial
Reporting Entity
564
City of Lynwood
Notes to the Basic Financial Statements
Year ended June 30, 2025

102
NOTE 18 SUBSEQUENT EVENTS

In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure through April 30, 2026, the date the financial statements were available to be issued. Based upon this evaluation, it was determined that no subsequent events occurred that required recognition or additional disclosure in the financial statements.

565

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)

566
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios Miscellaneous Plan
Last Ten Years

103

Measurement period 2014-15 2015-16 2016- 17 2017-18 2018-19 Total pension liability
Service cost 1,328,607$ 1, 272,859$ 1,397,160$ 973,785$ 954,743$ Interest 6,236,738 6, 391,825 6,546,957 6,500,059 6,765,828 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) 857,786 Benefit payments, including refunds of
employee contributions (3,653,076) (3,608,844) (4,200,397) (4,495,204) (4,714,906) Net change in total pension liability 1,605,017 2, 176,599 7,934,084 (1,061,913) 3,863,451 Total pension liability - beginning 84,995,474 86, 600,491 88,777,090 96,711,174 95,649,261 Total pension liability - ending (a) 86,600,491$ 88, 777,090$ 96,711,174$ 95,649,261$ 99,512,712$ Pension fiduciary net position
Contributions - employer 1,726,042$ 1, 908,780$ 1,823,634$ 2,307,111$ 2,966,212$ Contributions - employee 609,517 599, 040 486,971 485,889 716,937 Net investment income 1,381,816 314, 977 6,896,918 5,604,478 4,602,755 Benefit payments, including refunds of
employee contributions (3,653,076) ( 3,608,844) (4,200,397) (4,495,204) (4,714,906) Plan to plan resource movement 16,618 2, 328 2,424 (164) - Administrative expense (71,182) ( 38,522) (92,109) (104,878) (50,597) Other Miscellaneous Income/(Expense)1 - - - (199,165) 164 Net change in plan fiduciary net position 9,735 ( 822,241) 4,917,441 3,598,067 3,520,565 Plan fiduciary net position - beginning 2 63,198,832 63,208,567 62,386,326 67,303,767 70,901,834 Plan fiduciary net position - ending (b) 63,208,567$ 62, 386,326$ 67,303,767$ 70,901,834$ 74,422,399$ Plan net pension liability - ending (a) - (b) 23,391,924$ 26, 390,764$ 29,407,407$ 24,747,427$ 25,090,313$ Plan fiduciary net position as a percentage
of the total pension liability 72.99% 70.27% 69.59% 74. 13% 74.79% Covered payroll 3
7,571,271$ 7,437,528$ 7,205,569$ 5,230,341$ 5,284,456$ Plan net pension liability as a percentage
of covered payroll 308.96% 354.83% 408.12% 473. 15% 474.79% Notes to Schedule:
1During Fiscal Y ear 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 previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
2 Includes any beginning of year adjustment.
3 Includes one y ear’s payroll growth using 2.80% payroll growth assumption for fiscal years ended June 30, 2022 and 2023; 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.

Changes of Benefit T erms: 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.

In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes of Assumptions: T here were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014. 567
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of Changes in the Net Pension Liability and Related Ratios Miscellaneous Plan (Continued)
Last Ten Years

104

Measurement period 2019-20 2020-21 2021-22 2022-23 2023-24 Total pension liability
Service cost 1,472,116$ 1,526,500$ 1,604,315$ 1,597,832$ 1,782,373$ Interest 7,485,092 7,857,531 7,994,211 8,344,286 8,695,080 Changes of assumptions - - 4,102,878 163,697 - Differences between expected and actual
experience 6,897,979 1,142,164 (2,423,877) 756,032 818,132 Benefit payments, including refunds of
employee contributions (4,920,285) (4,914,961) (5,363,762) (5,519,136) (6,017,967) Net change in total pension liability 10,934,902 5,611,234 5,913,765 5,342,711 5,277,618 Total pension liability - beginning 99,512,712 110,447,614 116,058,848 121,972,613 127,315,324 Total pension liability - ending (a) 110,447,614$ 116,058,848$ 121,972,613$ 127,315,324$ 132,592,942$ Pension fiduciary net position
Contributions - employer 3,354,347$ 3,532,629$ 4,284,543$ 4,648,821$ 4,001,008$ Contributions - employee 690,604 622,025 615,059 635,622 677,534 Net investment income 3,678,510 17,149,454 (7,102,406) 5,352,420 8,715,941 Benefit payments, including refunds of
employee contributions (4,920,285) (4,914,961) (5,363,762) (5,519,136) (6,017,967) Plan to plan resource movement - - - - - Administrative expense (104,917) (77,039) (58,203) (63,099) (73,935) Other Miscellaneous Income/(Expense)1 - - - - - Net change in plan fiduciary net position 2,698,259 16,312,108 (7,624,769) 5,054,628 7,302,581 Plan fiduciary net position - beginning 2 74,422,399 77,120,658 93,432,766 85,807,997 90,862,625 Plan fiduciary net position - ending (b) 77,120,658$ 93,432,766$ 85,807,997$ 90,862,625$ 98,165,206$ Plan net pension liability - ending (a) - (b) 33,326,956$ 22,626,082$ 36,164,616$ 36,452,699$ 34,427,736$ Plan fiduciary net position as a percentage
of the total pension liability 69.83% 80.50% 70.35% 71.37% 74.04% Covered payroll 3
8,312,345$ 8,717,876$ 7,635,961$ 7,844,047$ 8,548,553$ Plan net pension liability as a percentage
of covered payroll 400.93% 259.54% 473.61% 464.72% 402.73% 568
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability Safety Plan
Last Ten Years

105

Measurement Date 2014-15 2015- 16 2016-17 2017-18 2018-19 City's proportion of the net pension liability/(asset) 0.13112% 0.12858% 0.12426% 0.12812% 0.12369% City's proportionate share of the net pension
liability/(asset) 5,402,562$ 6, 658,316$ 7,424,692$ 7,517,090$ 7,721,641$ 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 77.01% 71.71% 68. 08% 66.36% 63.97% 1The plan has no active members, and therefore, no covered payroll. 569
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability Safety Plan (Continued)
Last Ten Years

106

Measurement Date 2019-20 2020-21 2021-22 2022-23 2023-24 City's proportion of the net pension liability/(asset) 0.11852% 0.17159% 0.11945% 0. 10976% 0.10935% City's proportionate share of the net pension
liability/(asset) 7,896,343$ 6,021,824$ 8,207,967$ 8,204,500$ 7,972,236$ 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 60.93% 69.24% 53.65% 74.87% 76.66% 570
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of Plan Contributions - Pension
Miscellaneous Plan
Last Ten Years

107

Fiscal Year 2015-16 2016-17 2017-18 2018-19 2019-20
Actuarially determined contribution 1 1,908,780$ 1,823,634$ 2,307,111$ 2,966,212$ 3,354,347$ Contributions in relation to the actuarially
determined contribution 1 (1,908,780) (1,823,634) (2,307,111) (2,966,212) (3,354,347) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll 2 7,437,528$ 7,205,569$ 5,230,341$ 5,284,456$ 8,312,345$ Contributions as a percentage of covered
payroll2 25.66% 25.31% 44.11% 56.13% 40.35%
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
1 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.
2 Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2015 through 2017.
3As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year-end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were derived from the June 30, 2022 funding valuation report.

Entry Age Normal Cost Method
Level percentage of payroll

2.80%

6.8% net of pension plan investment expenses;
The probabilities of retirement are based on the 2021 CalPERS Experience Study Fair value

2.30%
Varies by entry age and service
The probabilities of mortality are based on the 2021 CalPERS Experience Study.

Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
571
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of Plan Contributions – Pension
Miscellaneous Plan (Continued)
Last Ten Years

108

Fiscal Year 2020-21 2021-22 2022-23 2023-24 2024-253
Actuarially determined contribution 1 3,532,629$ 4,284,543$ 4,648,821$ 4,001,008$ 4,376,843$ Contributions in relation to the actuarially
determined contribution 1 (3,532,629) (4,284,543) (4,648,821) (4,001,008) (4,376,843) Contribution deficiency (excess) -$ -$ -$ -$ -$ Covered payroll 2 8,717,876$ 7,635,961$ 7,844,047$ 8,548,553$ 8,824,678$ Contributions as a percentage of covered
payroll2 40.52% 56.11% 59.27% 46.80% 49.60%
572
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of Plan Contributions – Pension
Safety Plan
Last Ten Years

109

Fiscal Year 2015-16 2016-17 2017-18 2018-19 2019-20
Actuarially determined contribution -$ -$ -$ -$ -$ Contributions in relation to the actuarially
determined contribution (264,420) (319,342) (552,030) (673,381) (659,283) Contribution deficiency (excess) (264,420)$ (319,342)$ (552,030)$ (673,381)$ (659,283)$ Covered payroll 1 N/A N/A N/A N/A N/A
Contributions as a percentage of covered payroll 1 N/A N/A N/A N/A N/A Notes to Schedule:
1 The plan has no active members, and therefore, no covered payroll.

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

In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge. The impact on the unfunded liability is included in the pool’s differences between expected and actual experience.

Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.

Employers should refer to the CalPERS Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024, which may be accessed on the CalPERS website at www.calpers.ca.gov, to obtain the required supplementary information for proper financial reporting. 573
City of Lynwood
California Public Employees' Retirement System Defined Pension Plan Schedule of Plan Contributions – Pension
Safety Plan (Continued)
Last Ten Years

110

Fiscal Year 2020-21 2021-2022 2022-2023 2023-2024 2024-2025 Actuarially determined contribution -$ -$ -$ -$ -$ Contributions in relation to the actuarially
determined contribution (741,891) (733,353) (771,266) (649,719) (857,629) Contribution deficiency (excess) (741,891)$ (733,353)$ (771,266)$ (649,719)$ (857,629)$ Covered payroll 1 N/A N/A N/A N/A N/A
Contributions as a percentage of covered payroll 1 N/A N/A N/A N/A N/A 574

City of Lynwood
Other Postemployment Benefit Plan
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Years*

111
Measurement period 2016-17 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 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$ 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) 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 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:
*Historical information is presented only for measurement periods after GASB 75 was implemented 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.

From the June 30, 2022 measurement date, the medical trend rates, including PEMHCA minimum increases , assumed medical plan at retirement, and life insurance participation to 90% were updated. 575

City of Lynwood
Other Postemployment Benefit Plan
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) Last Ten Years*

112

Measurement period 2021-22 2022-23 2023-24
Total OPEB liability
Service cost 378,156$ 367,189$ 399,795$
Interest 1,474,469 1,509,237 1,660,544
Differences between expected and actual experience - 84,398 - Changes of assumptions - 1,808,526 - Benefit payments, including refunds
of employee contributions (1,280,743) (1,289,952) (1,472,173) Net change in total OPEB liability 571,882 2,479,398 588,166 Total OPEB liability - beginning 23,853,709 - 26,904,989 Total OPEB liability - ending (a) 24,425,591$ 2,479,398$ 27,493,155$ OPEB fiduciary net position
Contributions - employer 1,288,357$ 1,797,773$ 2,025,863$ Net investment income (771,518) 327,760 703,853 Benefit payments, including refunds of
employee contributions (1,280,743) (1,289,952) (1,472,173) Administrative expense (9,074) (9,273) (5,762) Net change in plan fiduciary net position (772,978) 826,308 1,251,781 Plan fiduciary net position - beginning 5,762,935 - 5,816,265 Plan fiduciary net position - ending (b) 4,989,957$ 826,308$ 7,068,046$ Plan net OPEB liability - ending (a) - (b) 19,435,634$ 1,653,090$ 20,425,109$ Plan fiduciary net position as a percentage 20.43% 33.33% 25.71% of the total OPEB liability
Covered-employee payroll 10,179,608$ 10,427,255$ 11,929,986$ Plan net OPEB liability as a percentage of
covered-employee payroll 190.93% 15.85% 171.21%
576

City of Lynwood
Other Postemployment Benefits Plan
Schedule of Contributions
Last Ten Years*

113
Fiscal Year 2016-17 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 contribution (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% Methods and assumptions used to determine contribution rates:

Valuation Date June 30, 2023
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Discount Rate
General Inflation 2.50%
Medical Trend
Mortality
Mortality Improvement Mortality projected fully generational with Scale MP-2021 * Historical information is presented only for m easurement 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. 16-year fixed period for 2023/24
Entry Age Normal, Level Percentage of Payroll
Level % of pay
Market value of assets

6.25%
Non-Medicare - 8.50% for 2025, decreasing to an u ltimate rate of 3.45% in 2076; Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3.45% in 2076
CalPERS 2000-2019 Experience Study
577

City of Lynwood
Other Postemployment Benefits Plan
Schedule of Contributions (Continued)
Last Ten Years*

114

Fiscal Year 2021-22 2022-23 2023- 24 2024-25
Actuarially determined contribution 2,310,000$ 1,876,000$ 1,955,000$ 2,170,000$ Contributions in relation to the actuarially
determined contribution (1,288,357) ( 1,797,773) (2,025,863) (2,049,764) Contribution deficiency (excess) 1,021,643$ 78,227$ (70,863)$ 120,236$ Covered-employee payroll 10,179,608$ 10,427,255$ 11,929,986$ 11,845,812$ Contributions as a percentage of covered payroll 12.7% 17.2% 17. 0% 17.3% 578
City of Lynwood
Budgetary Comparison Schedule
General Fund
Year ended June 30, 2025

115
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes and assessments $ 36,533,681 $ 36,533,681 $ 37,922,120 $ 1,388,439 Licenses and permits 901,750 901,750 1,276,885 375,135 Fines, forfeitures and penalties 886,500 886,500 1,548,235 661,735 Use of money and property 824,905 824,905 2,502,521 1,677,616 Intergovernmental revenues 73,131 73,131 213,938 140,807 Charges for services 1,889,330 1,889,330 2,687,454 798,124 Miscellaneous 297,500 297,500 379,175 81,675 Total revenues 41,406,797 41,406,797 46,530,328 5,123,531

EXPENDITURES
Current
General government
City Council 321,462 321,462 335,973 (14,511) City Clerk 674,930 674,930 384,309 290,621 City Treasurer 237,004 237,004 234,570 2,434 City Manager 1,444,518 1,603,893 1,703,416 (99,523) City Atorney 290,213 290,213 264,311 25,902 Finance & administration 815,267 815,810 714,649 101,161 Human resources 809,846 812,468 479,986 332,482 Total general government 4,593,240 4,755,780 4,117,214 638,566 Public safety - Police and fire 23,594,484 23,599,484 22,338,388 1,261,096 Public works
Water and sanitation 692,805 642,805 614,481 28,324 Development services 3,905,513 3,955,513 3,341,859 613,654 Total public works 4,598,318 4,598,318 3,956,340 641,978 Community development 6,099,789 6,329,789 6,207,729 122,060 Parks and recreation 5,330,646 5,366,268 4,877,210 489,058 Capital outlay 1,123,650 1,781,448 54,362 1,727,086 Debt service
Principal retirement 1,275,821 1,275,821 1,346,514 (70,693) Interest and fiscal charges 1,305,014 1,305,014 1,321,344 (16,330) Total expenditures 47,920,962 49,011,922 44,219,101 4,792,821

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (6,514,165) (7,605,125) 2,311,227 9,916,352

OTHER FINANCING SOURCES (USES)
Transfers in 5,008,190 5,008,190 8,190 (5,000,000) Transfers out (413,984) (2,011,238) (1,292,543) 718,695 Total other financing uses 4,594,206 2,996,952 (1,284,353) (4,281,305)
CHANGES IN FUND BALANCE $ (1,919,959) $ (4,608,173) 1,026,874 $ 5,635,047

FUND BALANCE
Beginning of year 49,223,537
End of year $ 50,250,411
579
City of Lynwood
Budgetary Comparison Schedule
Housing Authority Special Revenue Fund
Year ended June 30, 2025

116
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 205,651 $ 205,651 Total revenues - - 205,651 205,651

EXPENDITURES
Current
Community development 85,000 307,395 818,482 (511,087) Debt service
Principal retirement 1,825,000 1,825,000 1,755,000 70,000 Interest and fiscal charges 395,400 395,400 430,324 (34,924) Total expenditures 2,305,400 2,527,795 3,003,806 (476,011) CHANGES IN FUND BALANCE $ (2,305,400) $ (2,527,795) (2,798,155) $ (270,360)

FUND BALANCE
Beginning of year, as previously reported 26,814,837
Restatement (17,480,846)
Beginning of year, as restated 9,333,991
End of year $ 6,535,836
580
City of Lynwood
Budgetary Comparison Schedule
Landscape Maintenance Special Revenue Fund
Year ended June 30, 2025

117
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes and assessments $ 1,134,000 $ 1,134,000 $ 1,069,206 $ (64,794) Use of money and property 6,000 6,000 6,834 834 Total revenues 1,140,000 1,140,000 1,076,040 (63,960)

EXPENDITURES
Current
Public works 3,557,307 3,557,307 3,093,127 464,180 Total expenditures 3,557,307 3,557,307 3,093,127 464,180 CHANGES IN FUND BALANCE $ (2,417,307) $ (2,417,307) (2,017,087) $ 400,220

FUND DEFICIT
Beginning of year (7,936,926)
End of year $ (9,954,013)
581
City of Lynwood
Budgetary Comparison Schedule
American Rescue Plan Act Special Revenue Fund
Year ended June 30, 2025

118
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 14,208 $ 14,208 Intergovernmental - - 2,076,321 2,076,321 Total revenues - - 2,090,529 2,090,529

EXPENDITURES
Current
General government 165,881 882,179 599,705 282,474 Total expenditures 165,881 882,179 599,705 282,474

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (165,881) (882,179) 1,490,824 2,373,003

OTHER FINANCING USES
Transfers out (906,649) (1,675,797) (1,490,824) 184,973 Total other financing uses (906,649) (1,675,797) (1,490,824) 184,973 CHANGES IN FUND BALANCE $ (1,072,530) $ (2,557,976) - $ 2,557,976

FUND BALANCE
Beginning of year -
End of year $ -
582
City of Lynwood
Budgetary Comparison Schedule
Grants Special Revenue Fund
Year ended June 30, 2025

119
Original Final Variance with
Budget Budget A ctual Final Budget

REVENUES
Use of money and property $ 5,552 $ 5,552 $ 45,331 $ 39,779 Intergovernmental 14,046,930 17,396,930 7,930,501 (9,466,429) Miscellaneous - - 69,680 69,680 Total revenues 14,052,482 17,402,482 8,045,512 (9,356,970)

EXPENDITURES
Current
Public safety 100,000 100,000 70,880 29,120 Public works 38,349 38,349 22,258 16,091 Community development 9,009,758 12,688,843 6,480,331 6,208,512 Parks and recreation 180,310 180,310 189,163 (8,853) Capital outlay 2,156,868 2,296,868 1,420,798 876,070 Total expenditures 11,485,285 15,304,370 8,183,430 7,120,940

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,567,197 2,098,112 (137,918) (2,236,030)

OTHER FINANCING USES
Transfers out (5,169,588) (6,369,588) (3,542,378) 2,827,210 Total other financing sources (uses) (5,169,588) ( 6,369,588) (3,542,378) 2,827,210 CHANGES IN FUND BALANCE $ (2,602,391) $ (4,271,476) (3,680,296) $ 591,180

FUND BALANCE
Beginning of year 1,546,463
End of year $ (2,133,833)
583
City of Lynwood
Budgetary Comparison Schedule
Retirement Special Revenue Fund
Year ended June 30, 2025

120
Original Final Variance with
Budget Budget A ctual Final Budget

REVENUES
Taxes and assessments $ 5,751,000 $ 5,751,000 $ 7,992,433 $ 2,241,433 T
otal revenues 5,751,000 5,751,000 7,992,433 2,241,433

EXPENDITURES
Current
General government 909,332 909,332 955,949 (46,617) Public safety 886,309 886,309 857,629 28,680 Public works 1,293,876 1,293,876 1,275,742 18,134 Community development 673,136 673,136 651,354 21,782 Parks and recreation 355,150 355,150 343,658 11,492 Total expenditures 4,117,803 4,117,803 4,084,332 33,471

EXCESS OF REVENUES OVER
EXPENDITURES 1,633,197 1,633,197 3,908,101 2,274,904

OTHER FINANCING USES
Transfers out (1,757,637) (1,757,637) (1,757,637) - Total other financing uses (1,757,637) (1,757,637) (1,757,637) -

CHANGES IN FUND BALANCE
$ (124,440) $ (124,440) 2, 150,464 $ 2,274,904 F

UND BALANCE
Beginning of year 4,427,233
End of year $ 6,577,697
584
City of Lynwood
Notes to Required Supplementary Information
Year ended June 30, 2025

121

BUDGET AND BUDGETARY ACCOUNTING

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

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 revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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. 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 a two-year 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, when 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 the general fund, all special revenue, capital projects, and debt service funds except for 2012 Measure R Bond Proceeds and Measure R (Bans) Capital Projects Funds.

585

SUPPLEMENTARY INFORMATION

586

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587
City of Lynwood
Description of Nonmajor Governmental Funds
June 30, 2025

122
Nonmajor Special Revenue 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.

Lighting Maintenance Fund - This is a special assessment fund whereby revenue is received from the County of Los Angeles (the County) 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.

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.

Business Improvement District Fund - This fund accounts for special tax assessments imposed on businesses in the District to promote various activities within the District.

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.

Impact Fees Fund - This fund accounts for the fees collected from new developments, which will be used to construct public infrastructure.

Urban Farming Fund - This fund accounts for required licenses, charges and zoning verification fees related to cannabis commercial facilities.

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 to reduce air pollution from mobile sources.

Gas Tax Fund - This fund accounts for Gas Tax revenue received from the State of California to cover costs of street maintenance and improvements.

SB 1 Fund - This fund accounts for basic road maintenance, rehabilitation and critical safety needs on the local street and road system.

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.

Prop C Fund - This fund accounts for the City's portion of sales tax dedicated to transportation programs.

Measure M Fund - This fund is used to record the City’s share of the County's 0.5 percent sales tax for the traffic improvement plan.

Measure R Fund - These funds are used to account for revenues and monies spent on critical transit and highway projects.
588
City of Lynwood
Description of Nonmajor Governmental Funds (Continued)
June 30, 2025

123
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.

HSIP Fund - This fund accounts for the federal-aid program passed through the State of California.

This fund is used for traffic signal improvements on various City streets, such as Imperial Highway, Atlantic Avenue, Alameda Street, and Martin Luther King Boulevard.

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.

Safe Clean Water Fund - This fund accounts for funds received from the Los Angeles County Flood Control District for a share of Measure W, the Safe, Clean Water Program. This fund is used to improve water quality to ensure safe and clean water.

Nonmajor Capital Projects Funds:

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.

Measure M Bond Fund - accounts for bond proceeds that are used to fund certain transportation projects of the City.

Measure R (Bans) Fund - accounts for bond proceeds that are used to fund certain street and road improvements that are eligible for Measure R Local Return use.

2012 Measure R Bond Proceeds Fund - accounts for bond proceeds that are used to fund vital street improvement projects across the City.

2017 Lease Revenue Bonds ("LRB”) Fund - accounts for bond proceeds that are used to fund the 2019 public capital improvement project.

2019 Lease Revenue Bonds ("LRB") Fund - accounts for bond proceeds that are used to fund certain park improvement projects of the City.

2020 Lease Revenue Bonds ("LRB”) Fund - accounts for bond proceeds that are used to finance the working capital of the City’s General Fund or other purposes as determined by the City.

Nonmajor Debt Service Fund:

The 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.

589
City of Lynwood
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025

124

Business
Lighting Public Improvement
Maintenance Ar t District
ASSETS
Cash and investments $ 717,136 $ 1,801,638 $ 246,347 Receivables
Accounts and taxes, net 16,978 - 979 Intergovernmental 17,352 - -
Restricted assets
Cash and investments with fiscal agents - - - Total assets $ 751,466 $ 1,801,638 $ 247,326

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ 69,506 $ 7,650 $ 4,003 Accrued liabilities 3,913 - -
Deposits - - -
Due to other funds - - -
Unearned revenue - - -
Total liabilities 73,419 7,650 4,003
Deferred Inflow of Resources
Unavailable revenues 500 - - Total deferred inflow of resources 500 - - Fund Balances (Deficits)
Restricted for
Public works 677,547 - -
Community development - 1,793,988 243,323 Capital projects - - -
Debt service - - -
Committed for
Urban Farming - - -
Unassigned - - -
Total fund balances (deficits) 677,547 1,793,988 243,323 Total liabilities, deferred inflow of
resources, and fund balances $ 751,466 $ 1,801,638 $ 247,326 (Continued)
Special Revenue Funds
590
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

125

Enterprise Air
Zone Impact Urban Quality
Program Fees Farming Improvement
ASSETS
Cash and investments $ 181,685 $ 3,158,094 $ 1,114,218 $ 274,806 Receivables
Accounts and taxes, net - - - - Intergovernmental - - - - Restricted assets
Cash and investments with fiscal agents - - - - Total assets $ 181,685 $ 3,158,094 $ 1,114,218 $ 274,806

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits - - 345,000 - Due to other funds - - - - Unearned revenue - - - - Total liabilities - - 345,000 - Deferred Inflow of Resources
Unavailable revenues - - - - Total deferred inflow of resources - - - - Fund Balances (Deficits)
Restricted for
Public works - - - 274,806 Community development 181,685 - - - Capital projects - 3,158,094 - - Debt service - - - - Committed for
Urban Farming - - 769,218 - Unassigned - - - - Total fund balances (deficits) 181,685 3,158,094 769,218 274,806 Total liabilities, deferred inflow of
resources, and fund balances $ 181,685 $ 3,158,094 $ 1,114,218 $ 274,806 (Continued)
Special Revenue Funds
591
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

126

Gas Tax SB 1 Prop A Prop C
ASSETS
Cash and investments $ 973,596 $ 2,376,733 $ 3,416,002 $ 4,988,530 Receivables
Accounts and taxes, net - - 115,758 - Intergovernmental 161,900 329,660 - - Restricted assets
Cash and investments with fiscal agents - - - - Total assets $ 1,135,496 $ 2,706,393 $ 3,531,760 $ 4,988,530

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ 118,269 $ 182,369 $ - $ 33,256 Accrued liabilities 5,213 8,537 990 850 Deposits - - - - Due to other funds - - - - Unearned revenue - - - - Total liabilities 123,482 190,906 990 34,106 Deferred Inflow of Resources
Unavailable revenues - - - - Total deferred inflow of resources - - - - Fund Balances (Deficits)
Restricted for
Public works 1,012,014 2,515,487 3,530,770 -
Community development - - - 4,954,424 Capital projects - - - - Debt service - - - - Committed for -
Urban Farming - - - - Unassigned - - - - Total fund balances (deficits) 1,012,014 2,515,487 3,530,770 4,954,424 $ 1,135,496 $ 2,706,393 $ 3,531,760 $ 4,988,530 (Continued)
Total liabilities, deferred inflow of
resources, and fund balances
Special Revenue Funds
592
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

127

Measure M Measure R Transportation
ASSETS
Cash and investments $ 1, 464,585 $ 349,845 $ 253,571 Receivables
Accounts and taxes, net - - - Intergovernmental - - -
Restricted assets
Cash and investments with fiscal agents - - - Total assets $ 1,464,585 $ 349,845 $ 253,571

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ 180,821 $ 129,147 $ 261,210 Accrued liabilities 343 7,478 1,211 Deposits - - -
Due to other funds - - -
Unearned revenue - - 666
Total liabilities 181,164 136,625 263,087
Deferred Inflow of Resources
Unavailable revenues - - -
Total deferred inflow of resources - - - Fund Balances (Deficits)
Restricted for
Public works 1,283,421 213,220 -
Community development - - - Capital projects - - -
Debt service - - -
Committed for
Urban Farming - - -
Unassigned - - (9,516)
Total fund balances (deficits) 1,283,421 213,220 (9,516) Total liabilities, deferred inflow of
resources, and fund balances $ 1,464,585 $ 349,845 $ 253,571 (Continued)
Special Revenue Funds
593
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

128

Litter Safe Clean
HSIP Abatement Water
A
SSETS
Cash and investments $ 448,105 $ 2,363 $ 2,404,905 Receivables
Accounts and taxes, net - 68,921 - Intergovernmental 230,250 - -
Restricted assets
Cash and investments with fiscal agents - - - $ 678,355 $ 71,284 $ 2,404,905

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ - $ 51,299 $ 59,410 Accrued liabilities - 3,176 620 Deposits - - -
Due to other funds 120 534,819 -
Unearned revenue - - -
Total liabilities 120 589,294 60,030 Deferred Inflow of Resources
Unavailable revenues 230,250 - -
Total deferred inflow of resources 230,250 - - Fund Balances (Deficits)
Restricted for
Public works 447,985 - 2,344,875
Community development - - - Capital projects - - -
Debt service - - -
Committed for
Urban Farming - - -
Unassigned - (518,010) -
Total fund balances (deficits) 447,985 (518,010) 2,344,875 $ 678,355 $ 71,284 $ 2,404,905
(Continued)
Total liabilities, deferred inflow of
resources, and fund balances
Total assets
Special Revenue Funds
594
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

129

2012
Measure M Measure R Measure R 2017
Bonds (Bans) Bond Proceeds LRB
ASSETS
Cash and investments $ 1,728,241 $ 6 $ - $ 1,969,015 Receivables
Accounts and taxes, net - - - - Intergovernmental - - - - Restricted assets
Cash and investments with fiscal agents 686,066 2,556 435,837 - $ 2,414,307 $ 2,562 $ 435,837 $ 1,969,015

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ - $ - $ - $ 188,066 Accrued liabilities - - - - Deposits - - - - Due to other funds - - 15,323 - Unearned revenue - - - - Total liabilities - - 15,323 188,066 Deferred Inflow of Resources
Unavailable revenues - - - - Total deferred inflow of resources - - - - Fund Balances (Deficits)
Restricted for
Public works - - - - Community development - - - - Capital projects 1,754,207 - 27,770 - Debt service 660,100 2,562 392,744 1,780,949 Committed for
Urban Farming - - - - Unassigned - - - - Total fund balances (deficits) 2,414,307 2,562 420,514 1,780,949 $ 2,414,307 $ 2,562 $ 435,837 $ 1,969,015 (Continued)
Total liabilities, deferred inflow of
resources, and fund balances
Total assets
Capital Projects Funds
595
City of Lynwood
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025

130

Debt Service
Fund Total
Nonmajor
2019 2020 City of Governmental
LRB LRB Lynwood Funds
ASSETS
Cash and investments $ - $ - $ 3,500 $ 27,872,921 Receivables
Accounts and taxes, net - - - 202,636 Intergovernmental - - - 739,162 Restricted assets
Cash and investments with fiscal agents 8,268,276 13,197,420 - 22,590,155 $ 8,268,276 $ 13,197,420 $ 3,500 $ 51,404,874

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ - $ 87,334 $ - $ 1,372,340 Accrued liabilities - - - 32,331 Deposits - - - 345,000 Due to other funds 4,200,986 4,717,562 - 9,468,810 Unearned revenue - - - 666 Total liabilities 4,200,986 4,804,896 - 11,219,147 Deferred Inflow of Resources
Unavailable revenues - - - 230,750 Total deferred inflow of resources - - - 230,750 Fund Balances (Deficits)
Restricted for
Public works - - - 12,300,125 Community development - - - 7,173,420 Capital projects 2,998,502 7,336,170 - 15,274,743 Debt service 1,068,788 1,056,354 3,500 4,964,997 Committed for
Urban Farming - - - 769,218 Unassigned - - - (527,526) Total fund balances (deficits) 4,067,290 8,392,524 3,500 39,954,977 Total liabilities, deferred inflow of
resources, and fund balances $ 8,268,276 $ 13,197,420 $ 3,500 $ 51,404,874 (Concluded)
Total assets
Capital Projects Funds
596

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597
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Nonmajor Governmental Funds
Year ended June 30, 2025

131
Business
Lighting Public Improvement
Maintenance Retirement Art District

REVENUES
Taxes and assessments $ 1,039,076 $ $ - $ - Licenses and permits - - 115,268 Use of money and property 25,867 42,603 5,254 Intergovernmental - - -
Charges for services - 153,934 -
Miscellaneous 34,391 - -
Total revenues 1,099,334 196,537 120,522

EXPENDITURES
Current
General government 15,968 - -
Public works 1,221,271 - -
Community development - - 143,688 Parks and recreation - - -
Capital outlay - - -
Debt service
Principal payment 118,420 - -
Interest and fiscal charges 15,490 - - Total expenditures 1,371,149 - 143,688

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (271,815) 196,537 (23,166)

OTHER FINANCING SOURCES (USES)
Transfers in - - -
Transfers out - (5,000) -
Total other financing sources (uses) - (5,000) - CHANGES IN FUND BALANCES (271,815) 191,537 (23,166)

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 949,362 4,427,233 1,602,451 266,489
Change within financial reporting entity
(nonmajor to major fund) - (4,427,233) - - Fund balances, July 1, as adjusted 949,362 - 1,602,451 266,489 End of year $ 677,547 $ - $ 1,793,988 $ 243,323 (Continued)
Special Revenue Funds
598
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
Year ended June 30, 2025

132
Enterprise Air
Zone Impact Urban Quality
Program Fees Farming Improvement

REVENUES
Taxes and assessments $ - $ 332,419 $ - $ - Licenses and permits - - - - U
se of money and property 4,444 75,312 - 8,558 Intergovernmental - - - 87,548 Charges for services - - 1,900 - Miscellaneous - - - - Total revenues 4,444 407,731 1,900 96,106

EXPENDITURES
Current
General government - - - - Public works - - - 213,200 Community development - - - - Parks and recreation - - - - Capital outlay - - - - Debt service
Principal payment - - - 26,305 Interest and fiscal charges - - - 632 Total expenditures - - - 240,137

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 4,444 407,731 1,900 (144,031)

OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out - (3,190) - - Total other financing sources (uses) - (3,190) - - CHANGES IN FUND BALANCES 4,444 404,541 1,900 (144,031)

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 177,241 2,753,553 767,318 418,837
Change within financial reporting entity
(nonmajor to major fund) - - - - Fund balances, July 1, as adjusted 177,241 2,753,553 767,318 418,837 End of year $ 181,685 $ 3,158,094 $ 769,218 $ 274,806 (Continued)
Special Revenue Funds
599
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
Year ended June 30, 2025

133

Gas Tax SB 1 Prop A Prop C

REVENUES
Taxes and assessments $ - $ - $ 1,853,496 $ 1,441,409 Licenses and permits - - - - Use of money and property 57,066 47,494 129, 113 115,481 Intergovernmental 1,900,833 1,870,723 - - Charges for services - - - - Miscellaneous - - - - Total revenues 1,957,899 1,918,217 1,982,609 1,556,890

EXPENDITURES
Current
General government - - - - Public works 1,712,512 593,401 94,011 194,531 Community development - - - - Parks and recreation - - 14,664 - Capital outlay 213,043 177,509 - 106,887 Debt service
Principal payment - - - - Interest and fiscal charges - - - - Total expenditures 1,925,555 770,910 108,675 301,418

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 32,344 1,147,307 1,873,934 1,255,472

OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out (77,570) - (2,614,168) (218,740) Total other financing sources (uses) (77,570) - (2,614,168) (218,740) CHANGES IN FUND BALANCES (45,226) 1,147,307 (740,234) 1,036,732

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 1,057,240 1,368,180 4,271,004 3,917,692
Change within financial reporting entity
(nonmajor to major fund) - - - - Fund balances, July 1, as adjusted 1,057,240 1,368,180 4,271,004 3,917,692 End of year $ 1,012,014 $ 2,515,487 $ 3,530,770 $ 4,954,424 (Continued)
Special Revenue Funds
600
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
Year ended June 30, 2025

134

Measure M Measure R T ransportation

REVENUES
Taxes and assessments $ 1,224,575 $ 1,080,857 $ -
Licenses and permits - - -
Use of money and property 35,497 12,828 - Intergovernmental - - -
Charges for services - - 10
Miscellaneous - - -
Total revenues 1,260,072 1,093,685 10

EXPENDITURES
Current
General government - - -
Public works 26,367 467,387 1,876,497
Community development - - -
Parks and recreation - - -
Capital outlay 220,565 282,932 -
Debt service
Principal payment 125,000 340,000 -
Interest and fiscal charges 539,205 196,681 - Total expenditures 911,137 1,287,000 1,876,497

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 348,935 (193,315) (1,876,487)

OTHER FINANCING SOURCES (USES)
Transfers in - - 1,863,533
Transfers out (133,407) - -
Total other financing sources (uses) (133,407) - 1,863,533 CHANGES IN FUND BALANCES 215,528 (193,315) (12,954)

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 1,067,893 406,535 3,438
Change within financial reporting entity
(nonmajor to major fund) - - - Fund balances, July 1, as adjusted 1,067,893 406,535 3,438 End of year $ 1,283,421 $ 213,220 $ (9,516)
(Continued)
Special Revenue Funds
601
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
Year ended June 30, 2025

135

Litter Safe Clean
HSIP Abatement Water

REVENUES
Taxes and assessments $ - $ - $ - Licenses and permits - - -
Use of money and property 12 1,467 - Intergovernmental 1,266,685 - 585,732
Charges for services - 279,675 -
Miscellaneous - - -
Total revenues 1,266,697 281,142 585,732

EXPENDITURES
Current
General government - - -
Public works - 1,063,186 266,446
Community development - - -
Parks and recreation - - -
Capital outlay - - -
Debt service
Principal payment - - -
Interest and fiscal charges - - - Total expenditures - 1,063,186 266,446

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 1,266,697 (782,044) 319,286

OTHER FINANCING SOURCES (USES)
Transfers in - 410,484 -
Transfers out - - (302,853)
Total other financing sources (uses) - 410,484 (302,853) CHANGES IN FUND BALANCES 1,266,697 (371,560) 16,433

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported (818,712) (146,450) 2,328,442
Change within financial reporting entity
(nonmajor to major fund) - - - Fund balances, July 1, as adjusted (818,712) (146,450) 2,328,442 End of year $ 447,985 $ (518,010) $ 2,344,875
(Continued)
Special Revenue Funds
602
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
Year ended June 30, 2025

136

2012
Measure M M easure R Measure R 2017
Bonds (Bans) Bond Proceeds LRB

REVENUES
Taxes and assessments $ - $ - $ - $ - Licenses and permits - - - - Use of money and property 229,184 15,669 19,468 2,338 Intergovernmental - - - - Charges for services - - - - Miscellaneous - - - - Total revenues 229,184 15,669 19,468 2,338

EXPENDITURES
Current
General government - - - - Public works - - - 188,067 Community development - - - - Parks and recreation - - - - Capital outlay - - - - Debt service
Principal payment - - - - Interest and fiscal charges 1,701 16,149 19,659 - Total expenditures 1,701 16,149 19,659 188,067

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 227,483 (480) (191) (185,729)

OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out - - - (36,884) Total other financing sources (uses) - - - (36,884) CHANGES IN FUND BALANCES 227,483 (480) (191) (222,613)

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 2,186,824 3,042 420,705 2,003,562 Change within financial reporting entity
(nonmajor to major fund) - - - - Fund balances, July 1, as adjusted 2,186,824 3,042 420,705 2,003,562 End of year $ 2,414,307 $ 2,562 $ 420,514 $ 1,780,949 (Continued)
Capital Projects Funds
603
City of Lynwood
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
Year ended June 30, 2025

137
Debt Service
Fund
Nonmajor
2019 2020 City of Governmental
LRB LRB Lynwood Funds

REVENUES
Taxes and assessments $ - $ - $ - $ 6,971,832 Licenses and permits - - - 115,268 Use of money and property 658 663 - 828,976 Intergovernmental - - - 5,711,521 Charges for services - - - 435,519 Miscellaneous - - - 34,391 Total revenues 658 663 - 14,097,507

EXPENDITURES
Current
General government - - - 15,968 Public works - 290,839 - 8,207,715 Community development - - - 143,688 Parks and recreation - - - 14,664 Capital outlay - 70,622 - 1,071,558 Debt service
Principal payment - - - 609,725 Interest and fiscal charges 4 1,100 - 790,621 Total expenditures 4 362,561 - 10,853,939

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 654 (361,898) - 3,243,568

OTHER FINANCING SOURCES (USES)
Transfers in - - 480,628 2,754,645 Transfers out (4,200,986) (4,443,433) - (12,036,231) Total other financing sources (uses) (4,200,986) (4,443,433) 480,628 (9,281,586) CHANGES IN FUND BALANCES (4,200,332) (4,805,331) 480,628 (6,038,018)

FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 8,267,622 13,197,855 (477,128) 50,420,228 Change within financial reporting entity
(nonmajor to major fund) - - - (4,427,233) Fund balances, July 1, as adjusted 8,267,622 13,197,855 (477,128) 45,992,995 End of year $ 4,067,290 $ 8,392,524 $ 3,500 $ 39,954,977 (Concluded)
Capital Projects Funds
604
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Lighting Maintenance Special Revenue Fund
Year ended June 30, 2025

138
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes and assessments $ 1,079,000 $ 1,079,000 $ 1,039,076 $ (39,924) Use of money and property 15,561 15,561 25,867 10,306 Miscellaneous 18,000 18,000 34,391 16,391 Total revenues 1,112,561 1,112,561 1,099,334 (13,227)

EXPENDITURES
Current
General government 15,510 15,510 15,968 (458) Public works 1,082,521 1,082,521 1,221,271 (138,750) Capital outlay 50,000 50,000 - 50,000 Debt service
Principal payment 118,508 118,508 118,420 88 Interest and fiscal charges 15,402 15,402 15,490 (88) Total expenditures 1,281,941 1,281,941 1,371,149 (89,208) CHANGES IN FUND BALANCE $ (169,380) $ (169,380) (271,815) $ (102,435)

FUND BALANCE
Beginning of year 949,362
End of year $ 677,547
605
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Public Art Special Revenue Fund
Year ended June 30, 2025

139
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 10,375 $ 10,375 $ 42,603 $ 32,228 Charges for services 150,000 150,000 153,934 3,934 Total revenues 160,375 160,375 196,537 36,162

OTHER FINANCING USES
Transfers out (5,000) (5,000) (5,000) - Total other financing uses (5,000) (5,000) (5,000) - CHANGES IN FUND BALANCE $ 155,375 $ 155,375 191,537 $ 36,162

FUND BALANCE
Beginning of year 1,602,451
End of year $ 1,793,988
606
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Business Improvement District Special Revenue Fund
Year ended June 30, 2025

140
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Licenses and permits $ 125,000 $ 125,000 $ 115,268 $ (9,732) Use of money and property 3,264 3,264 5,254 1,990 Total revenues 128,264 128,264 120,522 (7,742)

EXPENDITURES
Current
Community development 200,300 200,300 143,688 56,612 Total expenditures 200,300 200,300 143,688 56,612 CHANGES IN FUND BALANCE $ (72,036) $ (72,036) (23,166) $ 48,870

FUND BALANCE
Beginning of year 266,489
End of year $ 243,323
607
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Enterprise Zone Program Special Revenue Fund
Year ended June 30, 2025

141
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 1,695 $ 1,695 $ 4,444 $ 2,749 Total revenues 1,695 1,695 4,444 2,749 CHANGES IN FUND BALANCE $ 1,695 $ 1,695 4,444 $ 2,749

FUND BALANCE
Beginning of year 177,241
End of year $ 181,685
608
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Impact Fees Special Revenue Fund
Year ended June 30, 2025

142
Original Final V ariance with
Budget Budget A ctual Final Budget

REVENUES
Taxes and assessments $ 504, 765 $ 504,765 $ 332,419 $ (172,346) Use of money and property 19,174 19,174 75,312 56,138 Total revenues 523,939 523,939 407,731 (116,208)

OTHER FINANCING USES
Transfers out (3,190) (3,190) (3,190) - Total other financing uses (3,190) (3,190) (3,190) - CHANGES IN FUND BALANCE $ 520, 749 $ 520,749 404,541 $ (116,208)

FUND BALANCE
Beginning of year 2,753,553
End of year $ 3, 158,094
609
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Urban Farming Special Revenue Fund
Year ended June 30, 2025

143
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Charges for services $ - $ - $ 1,900 $ 1,900 Total revenues - - 1,900 1,900

EXPENDITURES
Current
Community development 100,000 100,000 - 100,000 Total expenditures 100,000 100,000 - 100,000 CHANGES IN FUND BALANCE $ (100,000) $ (100,000) 1,900 $ 101,900

FUND BALANCE
Beginning of year 767,318
End of year $ 769,218
610
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Air Quality Improvement Special Revenue Fund
Year ended June 30, 2025

144
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 3,543 $ 3,543 $ 8,558 $ 5,015 Intergovernmental 85,307 85,307 87,548 2,241 Total revenues 88,850 88,850 96,106 7,256

EXPENDITURES
Current
Public works 213,200 213,200 213,200 - Debt service
Principal payment - - 26,305 (26,305) Interest and fiscal charges - - 632 (632) Total expenditures 213,200 213,200 240,137 (26,937) CHANGES IN FUND BALANCE $ (124,350) $ (124,350) (144,031) $ (19,681)

FUND BALANCE
Beginning of year 418,837
End of year $ 274,806
611
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Gas Tax Special Revenue Fund
Year ended June 30, 2025

145
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 9,737 $ 9,737 $ 57,066 $ 47,329 Intergovernmental 1,868,415 1,868,415 1,900,833 32,418 Total revenues 1,878,152 1,878,152 1,957,899 79,747

EXPENDITURES
Current
Public works 2,254,014 2,184,014 1,712,512 471,502 Capital outlay 319,167 439,167 213,043 226,124 Total expenditures 2,573,181 2,623,181 1,925,555 697,626

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (695,029) (745,029) 32,344 777,373

OTHER FINANCING USES
Transfers out (252,500) (252,500) (77,570) 174,930 Total other financing uses (252,500) (252,500) (77,570) 174,930

CHANGES IN FUND BALANCE
$ (947,529) $ (997,529) (45,226) $ 952,303

FUND BALANCE
Beginning of year 1,057,240
End of year $ 1,012,014
612
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
SB 1 Special Revenue Fund
Year ended June 30, 2025

146
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ 10,239 $ 10,239 $ 47,494 $ 37,255 Intergovernmental 1,754,996 1,754,996 1,870,723 115,727 Total revenues 1,765,235 1,765,235 1,918,217 152,982

EXPENDITURES
Current
Public works 1,190,041 1,190,041 593,401 596,640 Capital outlay 310,000 197,463 177,509 19,954 Total expenditures 1,500,041 1,387,504 770,910 616,594

EXCESS OF REVENUES OVER
EXPENDITURES 265,194 377,731 1,147,307 769,576

OTHER FINANCING USES
Transfers out (370,000) (370,000) - 370,000 Total other financing uses (370,000) (370,000) - 370,000 CHANGES IN FUND BALANCE $ (104,806) $ 7,731 1,147,307 $ 1,139,576

FUND BALANCE
Beginning of year 1,368,180
End of year $ 2,515,487
613
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Prop A Special Revenue Fund
Year ended June 30, 2025

147
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes and assessments $ 3,814,771 $ 1,952,000 $ 1,853,496 $ (98,504) Use of money and property 36,209 36,209 129,113 92,904 Total revenues 3,850,980 1,988,209 1,982,609 (5,600)

EXPENDITURES
Current
Public works 116,705 116,705 94,011 22,694 Parks and recreation - - 14,664 (14,664) Capital outlay 30,000 30,000 - 30,000 Total expenditures 146,705 146,705 108,675 38,030

EXCESS OF REVENUES OVER
EXPENDITURES 3,704,275 1,841,504 1,873,934 32,430

OTHER FINANCING USES
Transfers out (4,137,609) (4,137,609) (2,614,168) 1,523,441 Total other financing uses (4,137,609) (4,137,609) (2,614,168) 1,523,441 CHANGES IN FUND BALANCE $ (433,334) $ (2,296,105) (740,234) $ 1,555,871

FUND BALANCE
Beginning of year 4,271,004
End of year $ 3,530,770
614
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Prop C Special Revenue Fund
Year ended June 30, 2025

148
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Taxes and assessments $ 1,545,119 $ 1,545,119 $ 1,441,409 $ (103,710) Use of money and property 19,813 19,813 115,481 95,668 Total revenues 1,564,932 1,564,932 1,556,890 (8,042)

EXPENDITURES
Current
General government 17 17 - 17 Public works 265,942 265,942 194,531 71,411 Capital outlay 610,000 610,000 106,887 503,113 Total expenditures 875,959 875,959 301,418 574,541

EXCESS OF REVENUES OVER
EXPENDITURES 688,973 688,973 1,255,472 566,499

OTHER FINANCING USES
Transfers out (400,100) (400,100) (218,740) 181,360 Total other financing uses (400,100) (400,100) (218,740) 181,360 CHANGES IN FUND BALANCE $ 288,873 $ 288,873 1,036,732 $ 747,859

FUND BALANCE
Beginning of Year 3,917,692
End of Year $ 4,954,424
615
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Measure M Special Revenue Fund
Year ended June 30, 2025

149
Original Final Variance with
Budget Budget A ctual Final Budget

REVENUES
Taxes and assessments $ 1,313,351 $ 1,313,351 $ 1,224,575 $ (88,776) Use of money and property 6,422 6,422 35,497 29,075 Total revenues 1,319,773 1,319,773 1,260,072 (59,701)

EXPENDITURES
Current
Public works 1,044,298 44,298 26,367 17,931 Capital outlay 225,000 225,000 220,565 4,435 Debt service
Principal payment 125,000 125,000 125,000 - Interest and fiscal charges 535,300 535,300 539,205 (3,905) Total expenditures 1,929,598 929,598 911,137 18,461

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (609,825) 390,175 348,935 (41,240)

OTHER FINANCING USES
Transfers out (164,000) (164,000) (133,407) 30,593 Total other financing uses (164,000) (164,000) (133,407) 30,593 CHANGES IN FUND BALANCE $ (773,825) $ 226,175 215,528 $ (10,647)

FUND BALANCE
Beginning of year 1,067,893
End of year $ 1,283,421
616
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Measure R Special Revenue Fund
Year ended June 30, 2025

150
Original Final Variance with
Budget Budget A ctual Final Budget

REVENUES
Taxes and assessments $ 1,158,840 $ 1,158,840 $ 1,080,857 $ (77,983) Use of money and property 18,157 18,157 12,828 (5,329) Total revenues 1,176,997 1,176,997 1,093,685 (83,312)

EXPENDITURES
Current
Public works 613,564 613,564 467,387 146,177 Capital outlay 535,000 535,000 282,932 252,068 Debt service
Principal payment 340,000 340,000 340,000 - Interest and fiscal charges 220,107 220,107 196,681 23,426 Total expenditures 1,708,671 1,708,671 1,287,000 421,671

EXCESS OF REVENUES OVER
EXPENDITURES (531,674) (531,674) (193,315) 338,359

OTHER FINANCING USES
Transfers out (1,200,000) (1,200,000) - 1,200,000 Total other financing uses (1,200,000) (1,200,000) - 1,200,000 CHANGES IN FUND BALANCE $ (1,731,674) $ (1,731,674) (193,315) $ 1,538,359

FUND BALANCE
Beginning of year 406,535
End of year $ 213,220
617
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Transportation Special Revenue Fund
Year ended June 30, 2025

151
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Charges for services $ - $ - $ 10 $ 10 Total revenues - - 10 10

EXPENDITURES
Current
Public works 2,355,610 2,355,610 1,876,497 479,113 Total expenditures 2,355,610 2,355,610 1,876,497 479,113

DEFICIENCY OF REVENUES UNDER
EXPENDITURES (2,355,610) (2,355,610) (1,876,487) 479,123

OTHER FINANCING SOURCES
Transfers in 2,355,609 2,355,609 1,863,533 (492,076) Total other financing sources 2,355,609 2,355,609 1,863,533 (492,076) CHANGES IN FUND BALANCE $ (1) $ (1) (12,954) $ (12,953)

FUND BALANCE (DEFICIT)
Beginning of year 3,438
End of year $ (9,516)
618
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
HSIP Special Revenue Fund
Year ended June 30, 2025

152
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 12 $ 12 Intergovernmental - - 1,266,685 1,266,685 Total revenues - - 1,266,697 1,266,697

OTHER FINANCING USES
Transfers out (439,900) (439,900) - 439,900 Total other financing uses (439,900) (439,900) - 439,900 CHANGES IN FUND BALANCE $ (439,900) $ (439,900) 1,266,697 $ 1,706,597

FUND BALANCE (DEFICIT)
Beginning of year (818,712)
End of year $ 447,985
619
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Litter Abatement Special Revenue Fund
Year ended June 30, 2025

153
Original Final V ariance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 1,467 $ 1,467 Charges for services 390,453 390,453 279,675 (110,778) Total revenues 390,453 390,453 281,142 (109,311)

EXPENDITURES
Current
Public works 1,268,997 1,268,997 1,063,186 205,811 Total expenditures 1,268,997 1,268,997 1,063,186 205,811

DEFICIENCY OF REVENUES UNDER
EXPENDITURES (878,544) (878,544) (782,044) 96,500

OTHER FINANCING SOURCES
Transfers in 410,484 410,484 410,484 - Total other financing sources 410,484 410,484 410,484 - CHANGES IN FUND BALANCE $ (468,060) $ (468,060) (371,560) $ 96,500

FUND BALANCE (DEFICIT)
Beginning of year (146,450)
End of year $ (518,010)
620
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Safe Clean Water Special Revenue Fund
Year ended June 30, 2025

154
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Intergovernmental $ 599,764 $ 599,764 $ 585,732 $ (14,032) Total revenues 599,764 599,764 585,732 (14,032)

EXPENDITURES
Current
Public works 481,021 481,021 266,446 214,575 Total expenditures 481,021 481,021 266,446 214,575

EXCESS OF REVENUES OVER
EXPENDITURES 118,743 118,743 319,286 200,543

OTHER FINANCING USES
Transfers out (885,000) (885,000) (302,853) 582,147 Total other financing uses (885,000) (885,000) (302,853) 582,147 CHANGES IN FUND BALANCE $ (766,257) $ (766,257) 16,433 $ 782, 690

FUND BALANCE
Beginning of year 2,328,442
End of year $ 2,344,875
621
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Capital Improvement Capital Projects Fund - Major Fund
Year ended June 30, 2025

155
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 12,551 $ 12,551 Total revenues - - 12,551 12,551

EXPENDITURES
Current
Public works - - 179,523 (179,523) Capital Outlay 37,762,128 37,762,321 17,498,022 20,264,299 Total expenditures 37,762,128 37,762,321 17,677,545 20,084,776

DEFICIENCY OF REVENUES
OVER EXPENDITURES (37,762,128) (37,762,321) (17,664,994) 20,097,327

OTHER FINANCING SOURCES
Transfers in 37,762,128 39,437,925 19,114,379 (20,323,546) Total other financing sources 37,762,128 39,437,925 19,114,379 (20,323,546) CHANGES IN FUND BALANCE $ - $ 1,675,604 1,449,385 $ (226,219)

FUND BALANCE
Beginning of year 441,523
End of year $ 1,890,908
622
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
Measure M Bonds Capital Projects Fund
Year ended June 30, 2025

156
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 229,184 $ 229,184 Total revenues - - 229,184 229,184

EXPENDITURES
Current
Public works - 809,030 - 809,030 Debt service
Interest and fiscal charges - - 1,701 (1,701) Total expenditures - 809,030 1,701 807,329

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - (809,030) 227,483 1,036,513

OTHER FINANCING USES
Transfers out (229,500) (229,500) - 229,500 Total other financing uses (229,500) (229,500) - 229,500 CHANGES IN FUND BALANCE $ (229,500) $ (1,038,530) 227,483 $ 1,266,013

FUND BALANCE
Beginning of year 2,186,824
End of year $ 2,414,307
623
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
2017 Lease Revenue Bonds (LRB) Capital Projects Fund
Year ended June 30, 2025

157
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 2,338 $ 2,338 Total revenues - - 2,338 2,338

EXPENDITURES
Current
Public works - 190,970 188,067 2,903 Total expenditures - 190,970 188,067 2,903

DEFICIENCY OF REVENUES UNDER
EXPENDITURES - (190,970) (185,729) 5,241

OTHER FINANCING USES
Transfers out (175,000) $ (175,000) (36,884) 138,116 Total other financing uses (175,000) (175,000) (36,884) 138,116 CHANGES IN FUND BALANCE $ (175,000) $ (365,970) (222,613) $ 143,357

FUND BALANCE
Beginning of year 2,003,562
End of year $ 1,780,949
624
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
2019 Lease Revenue Bonds (LRB) Capital Projects Fund
Year ended June 30, 2025

158
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 658 $ 658 Total revenues - - 658 658

EXPENDITURES
Debt service
Interest and fiscal charges - - 4 (4) Total expenditures - - 4 (4)

EXCESS OF REVENUES OVER
EXPENDITURES - - 654 654

OTHER FINANCING USES
Transfers out (6,741,763) (6,741,763) (4,200,986) 2,540,777 Total other financing uses (6,741,763) (6,741,763) (4,200,986) 2,540,777 CHANGES IN FUND BALANCE $ (6,741,763) $ (6,741,763) (4,200,332) $ 2,541,431

FUND BALANCE
Beginning of year 8,267,622
End of year $ 4,067,290
625
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
2020 Lease Revenue Bonds (LRB) Capital Projects Fund
Year ended June 30, 2025

159
Original Final Variance with
Budget Budget Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 663 $ 663 Total revenues - - 663 663

EXPENDITURES
Current
Public works - 592,537 290,839 301,698 Capital outlay - 100,000 70,622 29,378 Debt service
Interest and fiscal charges - - 1,100 (1,100) Total expenditures - 692,537 362,561 329,976

DEFICIENCY OF REVENUES UNDER
EXPENDITURES - (692,537) (361,898) 330,639

OTHER FINANCING USES
Transfers out (12,392,000) (12,392,000) (4,443,433) 7,948,567 Total other financing uses (12,392,000) (12,392,000) (4,443,433) 7,948,567 CHANGES IN FUND BALANCE $ (12,392,000) $ (13,084,537) (4,805,331) $ 8,279,206

FUND BALANCE
Beginning of year 13,197,855
End of year $ 8,392,524
626
City of Lynwood
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budgetary Comparison Schedule
City of Lynwood Debt Service Fund
Year ended June 30, 2025

160
Original Final Variance with
Budget Budget Actual Final Budget

EXPENDITURES
Current
General government $ 3,500 $ 3,500 $ - $ 3,500 Total expenditures 3,500 3,500 - 3,500

OTHER FINANCING SOURCES
Transfers in 3,500 3,500 480,628 477,128 Total other financing sources 3,500 3,500 480,628 477,128 CHANGES IN FUND BALANCE $ - $ - 480,628 $ 480,628

FUND BALANCE (DEFICIT)
Beginning of year (477,128)
End of year $ 3,500
627
City of Lynwood
Description of Internal Service Funds
Year ended June 30, 2025

161
Internal Service Funds

Internal service funds are used to account for transactions related to the City's vehicle & equipment maintenance/replacement, information technology, its self -insurance programs, and facilities maintenance. These services are provided to other departments on a cost-reimbursement basis.

Vehicle & Equipment Maintenance/Replacement- This fund accounts for reimbursements from City departments for the cost of upkeep on City vehicles.

Information Technology Fund - This fund accounts for all information technology costs to the City.

Funding sources are 50% from the General Fund and 50% from the Water Fund.

Self-Insurance Fund - This fund accounts for reimbursements from City departments for the cost of insurance premiums, claims and administration.

Facilities Maintenance - This fund accounts for goods and services provided by the Garage Division Department to other departments on a cost-reimbursement basis. The purchase of all City vehicles and vehicle maintenance services are recorded in this fund.

628
City of Lynwood
Combining Statement of Net Position
Internal Service Funds
June 30, 2025

162
Vehicle &
Equipment
Maintenance/ Information Facilities
Replacement Technology Self-Insurance Maintenance Total ASSETS
Current Assets
Cash and investments $ 3,684,756 $ 10,274 $ 17,845,329 $ 259,115 $ 21,799,474 Accounts receivable, net - 7,200 - - 7,200 Prepaid items - - 75,129 - 75,129 Total current assets 3,684,756 17,474 17,920,458 259,115 21,881,803 Noncurrent assets
Restricted assets
Deposit in trust - - 300,000 - 300,000 Capital assets
Capital assets, being depreciated
and amortized, net 1,305,805 233,666 - - 1,539,471 Total capital assets, net 1,305,805 233,666 - - 1,539,471 Total noncurrent assets 1,305,805 233,666 300,000 - 1,839,471 Total assets 4,990,561 251,140 18,220,458 259,115 23,721,274

LIABILITIES
Current liabilities
Accounts payable 113,290 18,931 8,815 - 141,036 Accrued expenses - 10,384 63,151 - 73,535 Due to other funds 423,033 38,564 - - 461,597 Claims payable, due in one year - - 1,322,857 - 1,322,857 Lease payable, due in one year 265,937 37,605 - - 303,542 Unearned revenue - 3,639 - - 3,639 Total current liabilities 802,260 109,123 1,394,823 - 2,306,206 Noncurrent liabilities
Lease payable, due in more than one year 874,792 67,753 - - 942,545 Claims payable, due in more than one year - - 4,268,143 - 4,268,143 Total noncurrent liabilities 874,792 67,753 4,268,143 - 5,210,688 Total liabilities 1,677,052 176,876 5,662,966 - 7,516,894

NET POSITION
Net investment in capital assets 165,076 128,308 - - 293,384 Restricted for self-insurance - - 300,000 - 300,000 Unrestricted 3,148,433 (54,044) 12,257,492 259,115 15,610,996 Total net position $ 3,313,509 $ 74,264 $ 12,557,492 $ 259,115 $ 16,204,380 629
City of Lynwood
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2025

163
Vehicle &
Equipment
Maintenance/ Information Facilities
Replacement Technology Self-Insurance Maintenance Total

OPERATING REVENUES
Interdepartmental service charges $ 3,378,712 $ 1,259,476 $ 7,631,415 $ - $ 12,269,603 Total operating revenues 3,378,712 1,259,476 7,631,415 - 12,269,603

OPERATING EXPENSES
Insurance - - 2,978,448 - 2,978,448 Claims - - 3,865,196 - 3,865,196 Vehicle & equipment maintenance 619,363 1,330,206 - - 1,949,569 Depreciation and amortization 199,940 36,059 - - 235,999 Total operating expenses 819,303 1,366,265 6,843,644 - 9,029,212 OPERATING INCOME (LOSS) 2,559,409 (106,789) 787,771 - 3,240,391

NONOPERATING REVENUES (EXPENSES)
Investment earnings 63,226 81 56,122 6,337 125,766 Gain on sale of capital asset 48,615 - - - 48,615 Interest expense (33,731) (5,302) - - (39,033) Total nonoperating revenues (expenses) 78,110 (5,221) 56,122 6,337 135,348 Income (loss) before transfers 2,637,519 (112,010) 843,893 6,337 3,375,739

TRANSFERS
Transfers in - - 1,757,637 - 1,757,637 Total transfers - - 1,757,637 - 1,757,637 CHANGES IN NET POSITION 2,637,519 (112,010) 2,601,530 6,337 5,133,376 NET POSITION, JULY 1 675,990 186,274 9,955,962 252,778 11,071,004 NET POSITION, JUNE 30 $ 3,313,509 $ 74,264 $ 12,557,492 $ 259,115 $ 16,204,380 630
City of Lynwood
Combining Statement of Cash Flows
Internal Service Funds
Year ended June 30, 2025

164

Vehicle &
Equipment
Maintenance/ Information Facilities
Replacement Technology Self-Insurance Maintenance Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interdepartmental service charges $ 2,699,518 $ 1,290,847 $ 7,631,415 $ - $ 11,621,780 Payments to suppliers and employees (561,641) (1,304,320) - - (1,865,961) Payments for insurance premium and claims - - (6,349,296) - (6,349,296) Net cash provided by (used in) operating activities 2,137,877 (13,473) 1,282,119 - 3,406,523

CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - - 1,757,637 1,757,637 Net cash provided by noncapital financing activities - - 1,757,637 - 1,757,637

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets - (130,868) - - (130,868) Sale of capital assets 48,615 - - - 48,615 Principal repayments (171,019) (34,620) - - (205,639) Interest paid (33,731) (5,302) - - (39,033) Net cash used in capital and related financing activities (156,135) (170,790) - - (326,925)

CASH FLOW FROM INVESTING ACTIVITY
Investment earnings 68,848 756 56,122 7,270 132,996 Cash provided by investing activity 68,848 756 56,122 7,270 132,996 Changes in cash and investments 2,050,590 (183,507) 3,095,878 7,270 4,970,231

CASH AND INVESTMENTS
Beginning of year 1,634,166 193,781 15,049,451 251,845 17,129,243 End of year $ 3,684,756 $ 10,274 $ 18,145,329 $ 259,115 $ 22,099,474

RECONCILIATION OF CASH AND INVESTMENTS

TO THE STATEMENT OF NET POSITION
Cash and investment 3,684,756 10,274 17,845,329 259,115 21,799,474 Deposit in trust - - 300,000 - 300,000 Total $ 3,684,756 $ 10,274 $ 18,145,329 $ 259,115 $ 22,099,474

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss)
$ 2,559,409 $ (106,789) $ 787,771 $ - $ 3,240,391 Adjustments to reconcile operating income to
net cash provided by operating activities
Depreciation and amortization 199,940 36,059 - - 235,999 Change in assets and liabilities
Increase in accounts receivable - (7,193) - - (7,193) (Increase) decrease in prepaid items - 25,267 (75,129) - (49,862) Increase (decrease) in accounts payable 58,388 398 (2,655) - 56,131 Increase (decrease) in accrued expenses (666) 221 11,132 - 10,687 (Decrease) increase in due to other funds (679,194) 38,564 - - (640,630) Increase in claims payable - - 561,000 - 561,000 Total adjustments (421,532) 93,316 494,348 - 166,132 Net cash provided by operating activities $ 2,137,877 $ (13,473) $ 1,282,119 $ - $ 3,406,523 631

STATISTICAL SECTION

632

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633
City of Lynwood
Description of Statistical Section Contents

165
This part of the City of Lynwood's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.

Financial Trends (pages 166-173)
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity (pages 174-184)
These schedules contain information to help the reader assess the City’s most significant local revenue sources, transient occupancy tax (“TOT”) and property taxes.

Debt Capacity (pages 185-191)
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information (pages 192-193)
These schedules offer demographic and economic indicators to help the reader understand the environment in which the City’s financial activities take place.

Operating Information (pages 194-199)
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the government provides and the activities it performs.
634
City of Lynwood
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)

166

2016 2017 2018 2019 2020
G
overnmental Activities
Net Investment in Capital Assets $ 121,869,031 $ 134,085,572 $ 137,802,823 $ 113,302,974 $ 112,615,998 Restricted 24,894,733 25,023,626 29,623,562 61,054,174 33,723,770 Unrestricted (36,107,337) (41,349,927) (47,074,638) (40,186,835) (5,830,289) Total Governmental Activities
Net Position $ 110,656,427 $ 117, 759,271 $ 120,351,747 $ 134,170,313 $ 140,509,479 Business-type Activities
Net Investment in Capital Assets $ (4,645,107) $ (4,631,063) $ 410,640 $ (1,131,564) $ (4,365,339) Restricted 1,216,007 1,217,476 927,225 978,438 936,200 Unrestricted 10,815,651 4,158,447 1,916,674 2,473,949 5,432,465 Total Business-type Activities
Net Position $ 7,386,551 $ 744, 860 $ 3,254,539 $ 2,320,823 $ 2,003,326 Primary government
Net Investment in Capital Assets $ 117,223,924 $ 129,454,509 $ 138,213,463 $ 112,171,410 $ 108,250,659 Restricted 26,110,740 26,241,102 30,550,787 62,032,612 34,659,970 Unrestricted (25,291,686) (37,191,480) (45,157,964) (37,712,886) (397,824) Total Primary Government
Net Position $ 118,042,978 $ 118, 504,131 $ 123,606,286 $ 136,491,136 $ 142,512,805 Fiscal Year
635
City of Lynwood
Net Position by Component (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)

167

2021 2022 2023 2024 2025
Governmental Activities
Net Investment in Capital Assets $ 150,854,057 $ 141,219,613 $ 148,767,929 $ 158,628,357 $ 171,761,905 Restricted 86,780,524 60,003,916 61,048,363 81,205,444 56,026,140 Unrestricted (83,207,679) (19,798,362) 5,618,624 (16,232,246) 15,394,521 Total Governmental Activities
Net Position $ 154,426,902 $ 181,425,167 $ 215,434,916 $ 223,601,555 $ 243,182,566 Business-type Activities
Net Investment in Capital Assets $ (246,122) $ (4,659,674) $ (1,903,364) $ 935,770 $ 1,246,987 Restricted 669,519 675,254 910,021 1,259,882 1,602,457 Unrestricted 4,267,177 7,092,996 5,484,159 348,012 (1,237,149) Total Business-type Activities
Net Position $ 4,690,574 $ 3,108,576 $ 4,490,816 $ 2,543,664 $ 1,612,295 Primary government
Net Investment in Capital Assets $ 150,607,935 $ 136,559,939 $ 146,864,565 $ 159,564,127 $ 173,008,892 Restricted 87,450,043 60,679,170 61,958,384 82,465,326 57,628,597 Unrestricted (78,940,502) (12,705,366) 11,102,783 (15,884,234) 14,157,372 Total Primary Government
Net Position $ 159,117,476 $ 184,533,743 $ 219,925,732 $ 226,145,219 $ 244,794,861 Fiscal Year
636
City of Lynwood
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)

168
2016 2017 2018 2019 2020
E
xpenses
Governmental Activities
General government $ 9,379,498 $ 7,136,078 $ 8,071,215 $ 6,390,329 $ 6,995,890 Public safety 18,500,520 17,882,364 18,637,179 18,518,413 20,181,826 Public works 11,121,898 16,457,116 16,075,850 16,661,495 17,319,067 Community development 1,548,886 1,614,564 1,676,129 1,923,736 1,438,994 Parks and recreation 2,983,953 3,908,963 4,552,791 3,970,442 3,780,543 Interest on long-term debt 332,878 1,071,212 1,054,011 2,283,401 3,226,350 Total governmental activities expenses 43,867,633 48,070,297 50,067,175 49,747,816 52,942,670 Business-type activities
Water and sewer 9,870,110 13,224,683 8,887,470 9,136,538 10,158,834 Transit 1,074,358 1,226,680 1,385,168 1,140,910 1,739,420 Total business-type activities expenses 10,944,468 14,451,363 10,272,638 10,277,448 11,898,254 Total primary government expenses 54,812,101 62,521,660 60,339,813 60,025,264 64,840,924 Program Revenues
Governmental activities
Charges for services
General government 3,150,290 1,949,868 2,688,335 2,973,111 1,401,731 Public safety 62,422 1,498 - - -
Public works 2,812,627 2,862,357 1,980,045 1,224,495 815,003 Community development 1,043,855 3,482,668 3,233,961 4,113,467 3,659,591 Parks and recreation 803,486 954,442 684,148 708,237 431,636 Operating grants and contributions 15,732,256 14,352,236 17,845,656 17,141,326 16,657,095 Capital grants and contributions 2,483,687 3,243,416 - - - Total governmental activities program revenues 26,088,623 26,846,485 26,432,145 26,160,636 22,965,056 Business-type activities
Charges for services
Water and sewer 9,781,758 9,788,763 11,994,596 12,907,193 13,841,865 Transit 25,648 70,898 16,991 6,221 6,793 Total business-type activities program revenues 9,807,406 9,859,661 12,011,587 12,913,414 13,848,658 Total primary government program revenues 35,896,029 36,706,146 38,443,732 39,074,050 36,813,714 Net (Expenses)/Revenue
Governmental activities (17,779,010) (21,223,812) (23,635,030) (23,587,180) (29,977,614) Business-type activities (1,137,062) (4,591,702) 1,758,949 2, 635,966 1,950,404
Total primary government net expense (18,916,072) (25,815,514) (21,876,081) (20,951,214) (28,027,210) General Revenues and Other Changes in Net Assets
Governmental activities
Taxes and assessments
P
roperty taxes 9,054,582 9,265,676 9,795,477 10,683,709 10,877,603 Utility users tax 5,155,837 5,169,598 5,196,640 5,014,483 4,736,649 Sales and use taxes 5,159,810 4,814,034 9,176,594 10,236,088 10,107,253 Franchise taxes 657,966 577,959 671,343 673,766 702,844 Business license taxes 1,053,273 876,656 885,191 896,212 800,001 Other taxes 158,525 185,814 143,648 192,692 201,617 Investment earnings 323,475 220,414 370,824 4,371,883 6,076,939 Miscellaneous 963,447 869,221 497,896 1,158,007 127,625 Transfers (829,165) 2,132,037 (510,107) 4,178,906 2,686,249 Gain/Loss of Capital Assets (2,082,845) - - - - Total governmental activities 19,614,905 24,111,409 26,227,506 37,405,746 36,316,780 Business-type activities
Investment earnings 143,029 82,048 240,623 609,224 418,348 Transfers 829,165 (2,132,037) 510,107 (4,178,906) (2,686,249) Total business-type activities 972,194 (2,049,989) 750,730 (3,569,682) (2,267,901) Total primary government 20,587,099 22,061,420 26,978,236 33,836,064 34,048,879 Change in Net Position
Governmental activities 1,835,895 2,887,597 2,592,476 13,818,566 6,339,166 Business-type activities (164,868) (6,641,691) 2,509,679 (933,716) (317,497) Total primary government$ 1,671,027 $ (3,754,094) $ 5,102,155 $ 12,884,850 $ 6,021,669 Fiscal Year
637
City of Lynwood
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)

169

2021 2022 2023 2024 2025
E
xpenses
Governmental Activities
General government $ 7,076,551 $ 9,891,951 $ 5,592,256 $ 6,983,203 $ 6,237,894 Public safety 19,811,083 15,921,610 17,304,975 20,749,951 22,591,516 Public works 12,791,373 13,071,418 16,820,555 17,566,243 18,939,241 Community development 3,342,443 5,991,316 7,331,130 10,580,665 13,887,039 Parks and recreation 3,236,523 2,790,907 3,774,275 4,739,717 5,502,148 Interest on long-term debt 3,184,825 2,998,678 2,628,236 2,272,821 2,522,471 Total governmental activities expenses 49,442,798 50,665,880 53,451,427 62,892,600 69,680,309 Business-type activities
Water and sewer 11,754,041 15,557,904 12,129,166 14,924,442 15,002,557 Transit 1,307,702 - - - - Total business-type activities expenses 13,061,743 15,557,904 12,129,166 14,924,442 15,002,557 Total primary government expenses 62,504,541 66,223,784 65,580,593 77,817,042 84,682,866 Program Revenues
Governmental activities
Charges for services
General government 1,000,725 346,343 545,276 186,961 323,424 Public safety - - - - - Public works 1,294,037 662,094 678,923 724,845 1,211,708 Community development 8,183,833 8,149,680 5,849,055 1,009,548 1,096,095 Parks and recreation 34,150 200,245 234,694 492,493 486,022 Operating grants and contributions 23,765,614 30,557,979 33,621,978 11,732,271 23,260,382 Capital grants and contributions - 2,554,198 7,122,510 - - Total governmental activities program revenues 34,278,359 42,470,539 48,052,436 14,146,118 26,377,631 Business-type activities
Charges for services
Water and sewer 14,936,511 15,110,900 14,171,434 14,437,523 16,794,701 Transit 34 - - - - Total business-type activities program revenues 14,936,545 15,110,900 14,171,434 14,437,523 16,794,701 Total primary government program revenues 49,214,904 57,581,439 62,223,870 28,583,641 43,172,332 Net (Expenses)/Revenue
Governmental activities (15,164,439) (8,195,341) (5,398,991) (48,746,482) (43,302,678) Business-type activities 1,874,802 (447,004) - (486,919) 1,792,144
Total primary government net expense (13,289,637) (8,642,345) (5,398,991) (49,233,401) (41,510,534) General Revenues and Other Changes in Net Assets
Governmental activities
Taxes and assessments
P
roperty taxes 11,807,523 12,517,589 13,388,778 19,887,440 21,030,617 Utility users tax 5,225,838 5,776,593 6,748,187 6,308,756 7,030,394 Sales and use taxes 12,886,776 14,171,446 13,528,574 17,433,441 17,737,227 Franchise taxes 652,305 827,532 881,816 2,684,139 2,264,151 Business license taxes 764,016 808,295 763,394 1,109,123 1,392,153 Other taxes 410,021 178,425 862,142 4,818,393 5,876,095 Investment earnings (11,930) (502,623) 961,083 2,955,977 3,624,248 Miscellaneous 823,915 414,260 1,254,778 772,669 413,566 Transfers 1,291,583 1,002,089 1,000,000 1,000,000 3,515,238 Gain/Loss of Capital Assets - - - - - Total governmental activities 33,850,047 35,193,606 39,388,752 56,969,938 62,883,689 Business-type activities
Investment earnings 84,477 (132,905) 339,972 743,502 791,725 Transfers (1,291,583) (1,002,089) (1,000,000) (1,000,000) (3,515,238) Total business-type activities (1,207,106) (1,134,994) (660,028) (256,498) (2,723,513) Total primary government 32,642,941 34,058,612 38,728,724 56,713,440 60,160,176 Change in Net Position
Governmental activities 18,685,608 26,998,265 33,989,761 8,223,456 19,581,011 Business-type activities 667,696 (1,581,998) 1,382,240 (743,417) (931,369) Total primary government$ 19,353,304 $ 25,416,267 $ 35,372,001 $ 7,480,039 $ 18,649,642 Fiscal Year
638
City of Lynwood
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

170
2016 2017 2018 2019 2020
General Fund
Nonspendable $ - $ - $ - $ - $ - Restricted 7,329 7,329 7,330 7,330 7,331 Committed - 75,372 561,594 1,621,084 3,159,083 Assigned - - - - - Unassigned 2,453,365 2,487,070 4,310,549 5,434,903 2,362,692 Total general fund $ 2,460,694 $ 2,569,771 $ 4,879,473 $ 7,063,317 $ 5,529,106 All Other Governmental Funds
Restricted
Special revenue funds $ 23,114,443 $ 24,860,823 $ 22,942,043 $ 44,272,808 $ 44,583,058 Capital projects funds 6,542,492 12,468,984 8,309,100 20,544,814 27,583,834 Debt service funds 1,550,245 797,673 782,292 783,176 3,472,680 Committed
Special revenue funds - 171,763 465,420 644,509 745,952 Unassigned (4,125,951) (1,145,932) (1,528,581) (2,818,704) (4,248,195) Total all other governmental funds $ 27,081,229 $ 37,153,311 $ 30,970,274 $ 63,426,603 $ 72,137,329 Fiscal Year
639
City of Lynwood
Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

171

2021 2022 2023 2024 2025
General Fund
Nonspendable $ - $ 16,927 $ 8,507 $ - $ - Restricted 7,331 1,007,345 1,007,396 1,007,421 1,008,414 Committed 4,828,977 4,042,373 8,780,272 10,379,444 17,018,538 Assigned - 27,470,431 36,746,599 28,055,210 28,012,425 Unassigned 5,867,465 208,510 1,938,645 9,781,462 4,211,034 Total general fund $ 10,703,773 $ 32,745,586 $ 48,481,419 $ 49,223,537 $ 50,250,411 All Other Governmental Funds
Restricted
Special revenue funds $ 46,922,580 $ 51,499,350 $ 53,172,113 $ 53,376,890 $ 35,745,172 Capital projects funds 10,069,569 31,726,565 28,848,306 26,521,133 18,969,054 Debt service funds 28,689,358 3,805,664 3,760,417 - 3,500 Committed
Special revenue funds 791,529 791,529 778,668 767,318 769,218 Unassigned (3,797,255) (6,258,156) (11,808,772) (9,379,216) (12,615,372) Total all other governmental funds $ 82,675,781 $ 81,564,952 $ 74,750,732 $ 71,286,125 $ 42,871,572 Fiscal Year
640
City of Lynwood
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

172

2016 2017 2018 2019 2020
R
evenues
Taxes and assessments $ 28,377,635 $ 31,564,356 $ 36,076,064 $ 40,508,130 $ 38,081,145 Licenses and permits 1,469,275 1,079,321 1,338,372 1,272,593 1,167,280 Fines, forfeitures and penalties 1,524,942 1,601,620 1,751,217 2,344,777 1,654,693 Use of money and property 501,983 388,607 852,453 4,527,076 6,265,801 Intergovernmental 6,639,118 9,486,512 5,967,357 5,527,762 4,752,470 Charges for services 4,073,836 5,169,273 3,566,354 3,108,190 2,649,720 Administrative support 1,118,246 1,118,246 1,118,246 1,118,246 1,118,674 Miscellaneous 1,210,870 1,370,324 2,173,308 1,528,942 775,541 Total revenues 44,915,905 51,778,259 52,843,371 59,935,716 56,465,324 Expenditures
General government 8,334,494 5,032,778 6,260,252 5,430,688 6,205,664 Public safety 18,018,139 16,500,838 17,615,500 18,568,913 19,530,520 Public works 9,145,919 11,294,021 12,058,593 13,932,186 14,517,228 Community development 1,522,374 800,318 1,004,115 1,650,759 1,375,810 Parks and recreation 2,865,986 2,935,450 3,377,729 3,702,665 3,669,669 Capital outlay 6,723,796 11,423,972 15,735,275 12,782,838 13,360,578 Debt service
Principal retirement 808,556 2,392,349 873,452 1,738,123 2,276,366 Interest and fiscal charges 870,719 929,521 1,008,324 4,082,308 3,492,742 Total expenditures 48,289,983 51,309,247 57,933,240 61,888,480 64,428,577 Excess (deficiency ) of revenues over
(under) expenditures (3,374,078) 469,012 (5,089,869) (1,952,764) (7,963,253) Other Financing Sources (Uses)
Long-term debt issuance - 7,685,000 2,740,000 35,869,165 22,420,000 Proceed from sale of assets - - - - - Payments to escrow agent - - - - (8,985,000) Transfers in 11,425,797 24,701,464 17,007,561 21,172,376 27,873,462 Transfers out (12,969,962) (23,437,287) (18,531,027) (20,448,604) (26,168,694) Total other financing sources (uses) (1,544,165) 8,949,177 1,216,534 36,592,937 15,139,768 Special item (2,082,845) - - - - Net change in fund balances $ (7,001,088) $ 9,418,189 $ (3,873,335) $ 34,640,173 $ 7,176,515 Debt service as a percentage of
noncapital expenditures 3.48% 6.47% 3.25% 9.40% 5. 42%
Ratio updated in 2023: Total debt service expenditures/total non-capital expenditures Ratio updated in 2022: Total debt service expenditures/total non-capital expenditures Source: City of Lynwood Finance Department
Fiscal Year
641
City of Lynwood
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)

173
2021 2022 2023 2024 2025
R
evenues
Taxes and assessments $ 44,622,651 $ 49,747,646 $ 51,334,238 $ 51,165,892 $ 53,955,591 Licenses and permits 1,209,119 1,162,388 1,134,814 1,109,123 1,392,153 Fines, forfeitures and penalties 2,323,943 1,705,168 1,662,586 1,592,072 1,548,235 Use of money and property 3,713,015 (223,667) 1,203,620 2,943,758 3,616,072 Intergovernmental 6,935,540 20,956,327 20,859,995 14,851,228 15,932,281 Charges for services 2,457,713 2,170,846 2,547,862 2,577,688 3,122,973 Administrative support 1,118,674 - - - - Miscellaneous 3,699,452 866,855 2,851,743 1,478,673 483,246 Total revenues 66,080,107 76,385,563 81,594,858 75,718,434 80,050,551 Expenditures
General government 5,142,568 10,556,992 5,260,193 6,127,493 5,688,836 Public safety 19,893,853 14,760,406 21,027,948 21,803,876 23,266,897 Public works 12,857,473 12,248,572 14,398,961 14,767,493 16,734,705 Community development 2,738,040 6,151,238 7,929,385 11,090,359 14,301,584 Parks and recreation 2,697,177 3,452,092 4,074,616 4,979,174 5,424,695 Capital outlay 14,268,601 6,422,198 13,822,670 13,416,120 20,044,740 Debt service
Principal retirement 2,847,918 2,651,204 3,129,674 3,565,024 3,711,239 Interest and fiscal charges 2,597,307 2,816,438 2,738,589 2,676,492 2,542,289 Total expenditures 63,042,937 59,059,140 72,382,036 78,426,031 91,714,985 Excess (deficiency ) of revenues over
(under) expenditures 3,037,170 17,326,423 9,212,822 (2,707,597) (11,664,434) Other Financing Sources (Uses)
Long-term debt issuance 14,278,064 811,623 126,791 123,071 - Proceed from sale of assets - 2,000,000 - - - Payments to escrow agent - - - - - Transfers in 19,280,867 13,617,673 18,327,141 20,364,819 21,877,214 Transfers out (20,882,982) (14,320,116) (18,745,141) (20,572,456) (20,119,613) Total other financing sources (uses) 12,675,949 2,109,180 (291,209) (84,566) 1,757,601 Special item - - - - - Net change in fund balances $ 15,713,119 $ 19,435,603 $ 8,921,613 $ (2,792,163) $ (9,906,833) Debt service as a percentage of
noncapital expenditures 11.16% 10.39% 10.02% 9.60% 8. 73% Ratio updated in 2023: Total debt service expenditures/total non-capital expenditures Ratio updated in 2022: Total debt service expenditures/total non-capital expenditures Source: City of Lynwood Finance Department
Fiscal Year
642
City of Lynwood
Tax Revenues by Source of Governmental Funds
Last Ten Fiscal Years

174

Fiscal
Year
Property
Taxes Sales Taxes
Utility
Users
T
axes
Franchise
Taxes
Property
Transfer
T
axes
Other
Taxes Total
2016 $ 15, 112,877 $ 7,302,546 $ 5,155,837 $ 647,850 $ 88,564 $ 69,961 $ 28,377,635 2017 15,547,317 8,010,746 5,169,598 577,959 112,071 73,743 29,491,434 2018 15,789,300 13,250,201 5,196,640 1,652,610 102,646 73,369 36,064,766 2019 10,600,246 10,236,088 5,014,483 673,766 83,463 1,088,904 27,696,950 2020 10,877,603 10,107,253 4,736,649 702,844 79,740 921,878 27,425,967 2021 11,807,523 12,886,776 5,225,838 652,305 280,325 893,712 31,746,479 2022 12,517,589 14,171,446 5,776,593 827,532 35,070 951,650 34,279,880 2023 13,388,778 13,528,574 6,748,187 881,816 311,774 1,313,762 36,172,891 2024 19,887,440 17,433,441 6,308,756 2,684,139 181,191 5,746,325 52,241,292 2025 20,389,107 17,852,984 7,030,394 2,264,151 53,778 6,032,759 53,623,173 643
City of Lynwood
Assessed Value
Last Ten Fiscal Years

175

2016 2017 2018 2019 2020
Residential $ 2,145,047,282 $ 2,239,221,012 $ 2,356,724,122 $ 2,487,200,043 $ 2,616,032,409 Industrial 255,981,922 277,993,737 293,269,290 340,299,975 362,333,739 Commercial 361,390,369 375,592,007 390,379,249 408,867,578 433,151,308 Institutional 314,952,588 312,544,660 320,582,799 322,122,208 327,244,068 Unclassified 15,805,005 16,047,269 16,368,200 16,605,633 16,937,734 Vacant Land 27,197,344 27,456,753 27,774,822 35,903,273 29,676,398 Recreational 323,668 3,818,892 3,027,613 3,088,162 3,149,923 Possessory Interest 4,945,767 5,252,407 5,679,542 6,076,410 6,541,914 Miscellaneous 137,451 139,146 141,403 143,705 146,053
Government - - - 10,000 - Professional - - - - - Unitary 177 159 153 - -
Unsecured 91,745,901 87,670,655 86,493,766 126,040,208 132,236,535 Tax Exempt (323,106,195) (326,060,603) (329,295,700) (259,977,346) (347,064,777) Totals $ 2,894,421,279 $ 3,019,676,094 $ 3,171,145,259 $ 3,486,379,849 $ 3,580,385,304 Fiscal Year
644
City of Lynwood
Assessed Value (Continued)
Last Ten Fiscal Years

176

2021 2022 2023 2024 2025
Residential $ 2,756,128,280 $ 2,856,541,413 $ 2,983,575,418 $ 3,146,644,075 $ 3,292,809,502 Industrial 405,179,415 427,613,280 422,619,308 493,219,382 509,599,531 Commercial 448,093,195 492,603,904 496,630,467 517,501,517 644,959,309 Institutional 334,148,725 257,239,406 266,731,493 265,819,140 272,651,325 Unclassified 17,361,945 18,037,265 11,174,762 28,500,003 35,266,528 Vacant Land 29,195,281 425,761 56,619,085 1,101,453 1,123,478 Recreational 3,212,919 4,097,904 4,179,858 4,263,452 4,824,769 Possessory Interest 6,990,393 7,578,983 7,798,075 10,626,111 10,694,371 Miscellaneous 148,448 149,712 152,181 154,699 612,188 Government - - - - - Professional - - 7,355,708 - - Unitary - - - - - Unsecured 98,823,624 103,348,091 115,754,898 118,768,899 132,263,149 Tax Exempt (266,968,959) (80,303,653) (78,271,441) (73,614,906) (83,774,682) Totals $ 3,832,313,266 $ 4,087,332,066 $ 4,294,319,812 $ 4,512,983,825 $ 4,821,029,468 Fiscal Year
645
City of Lynwood
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $1,000 of Assessed Value)

177

Agency 2016 2017 2018 2019 2020
B
asic Levy 1.000000 1.000000 1.000000 1.000000 1.000000
Compton Community College District 0.057774 0.057892 0.068796 0.091284 0.074043 Compton Unified School District 0.000000 0.000000 0.000000 0.000000 0.000000 County Detention Facilities 1987 Debt 0.000000 0.000000 0.000000 0.000000 0.000000 LA Community College District 0.000000 0.000000 0.000000 0.000000 0.000000 LA County Flood Control 0.000000 0.000000 0.000000 0.000000 0.000000 Los Angeles Unified School District 0.000000 0.000000 0.000000 0.000000 0.000000 Lynwood Unified 0.297915 0.360094 0.434629 0.358944 0.425567 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 Tax District 0.125000 0.125000 0.125000 0.125000 0.125000 Total Direct & Overlapping Tax Rates 1.484189 1.546486 1.631925 1.578728 1.628110 City's Share of 1% Levy Per Prop 13 0.113014 0.113014 0.113014 0.113014 0.113014 Source: Los Angeles County Auditor/Controller, Avenu Insights & Analytics For purposes of this report, TRA 6-089, 1-407, and 3-228 are represented.

Total Direct and Overlapping Tax Rates include all rates which occur within the city. Not all tax rates occur within each TRA.

Fiscal Year
646
City of Lynwood
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
(Rate per $1,000 of Assessed Value)

178

Agency 2021 2022 2023 2024 2025
B
asic Levy 1.000000 1.000000 1.000000 1.000000 1.000000
Compton Community College District 0.066207 0.071841 0.052426 0.109919 0.045087 Compton Unified School District 0.000000 0.000000 0.080267 0.129522 0.123253 County Detention Facilities 1987 Debt 0.000000 0.000000 0.000000 0.000000 0.000000 LA Community College District 0.000000 0.000000 0.000000 0.000000 0.000000 LA County Flood Control 0.000000 0.000000 0.000000 0.000000 0.000000 Los Angeles Unified School District 0.000000 0.000000 0.121072 0.124219 0.128018 Lynwood Unified 0.346217 0.375149 0.155131 0.158104 0.142781 Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.007000 Tax District 0.125000 0.125000 0.125000 0.125000 0.125000 Total Direct & Overlapping Tax Rates 1.540924 1.575490 1.537396 1.650264 1.571139 City's Share of 1% Levy Per Prop 13 0.113014 0.113014 0.113014 0.113014 0.113014 Source: Los Angeles County Auditor/Controller, Avenu Insights & Analytics For purposes of this report, TRA 6-089, 1-407, and 3-228 are represented.

Total Direct and Overlapping Tax Rates include all rates which occur within the city. Not all tax rates occur within each TRA.

Fiscal Year
647
City of Lynwood
Principal Property Taxpayers
Current Year and Nine Years Ago

179

Taxpayer
Taxable
Value ($) Rank
% of Net
Assessed
Value
Taxable
Value ($) Rank
% of Net
Assessed
Value
MPT Of Lynwood LP $ 212,241,599 1 4.40% $
Duke Realty Ltd Partnership 88,585,738 2 1.84% 39,839,321 1.38% Terreno Lynwood LLC 68,859,232 3 1.43%
Svap III Plaza Mexico 167,917,500 4 3.48%
Rexford Industrial Industry Way 25,922,255 5 0.54% Centerpoint Properties Trust 24,345,360 6 0.50% Prime Desert Properties LLC 22,180,005 7 0.46% Earl M Jorgensen Co 21,948,399 8 0.46% 18,627,444 0.64% Jones Lumber 19,465,079 9 0.40% 15,586,366.00 0.54% EK Lynwood LLC 17,659,107 10 0.37%
Albi Lynwood Investments LLC 16,649,724 0.35% 18,232,276 0.63% 805 Property LLC 15,723,015 0.33% 12,415,485 0.43% St Francis Medical Center 0.00% 6,685,505.00 0.23%
Primrose19 LP 12,959,301 0.27%
BRE Investment Group LLC 12,886,798 0.27%
Airgas Usa LLC 0.00% 15,448,235 0.53%
Shapco Partnership 12,590,670 0.26% 10,676,742 0.37% Lynwood MFT LLC 11,920,160 0.25%
St Mary Medical Center 11,651,942 0.24%
Lee Riviera Enterprises LLC 11,559,408 0.24%
11861 11865 S Alameda St LLC 0.00%
Mendez Family Ltd. 0.00%
PL Dev 10,939,016 0.23% 17,957,500 0.62%
710 Investment Group LLC 10,247,940 0.21%
Paz Paulino R 10,157,000 0.21%
Jorgensen Earle M Co 10,096,674 0.21%
Trinh Tony Co 9,168,614 0.19%
Siemens Financial Services 9,007,215 0.19%
Nova Storage Lynwood LP 0.00% 7,489,857 0.26%
Plamex Investment LLC 0.00% 44,295,159 1.53%
Prime Healthcare Services 0.00%
Economic Resources Corp 0.00% 11,888,831 0.41%
El Segundo Boulevard Property 11,399,180 0.24%
Villas LLC 0.00%
Sunshine Capital Group LLC 0.00% 6,958,847 0.24% Suncor Lynwood LLC 0.00%
Lynwood Alameda Corp 21,321,352 0.74%
NHP PMB St Francis Lynwood 17,714,490 0.61%
Aaron Industries Inc. 0.00%
VK Atlantic Avenue 16,064,685 0.56%
Southern California Airgas 0.00%
Parr Susan 11,162,857 0.39%
Urban LLC 10,998,455 0.38%
Mahboubian Sohail 10,116,559 0.35%
Sunshine Capital Group LLC 0.00%
Layne Larry 0.00%
PCCR Usa Inc. 6,929,639 0.24%
Melcar Investments LP 9,107,058 0.31%
Labarbera Dev L P 6,798,158 0.23%
SA Recycling LLC 0.00%
Demeire Kurt S Sandra L 6,786,220 0.23%
Time Warner Cable 6,768,494 0.23%
M M Apts LLC 6,479,645 0.22%
Top Ten Totals $ 846,080,931 17.55% $ 356,349,180 12.31% Total Taxable Value $ 4,821,029,468 100.00% $ 2,894,421,279 100.00% Source: Los Angeles County Assessor data, Avenu Insights & Analytics 2024-2025 2015-2016
648
City of Lynwood
Property Tax Levies and Collections
Last Ten Fiscal Years

180

Taxes Levied
Collected within the
Fiscal Year of the Levy
Fiscal Year
Ended June
for the
Fiscal Year Amount
Percentage
of Levy Amount
Percentage
of Levy
2016 $ 2,446,457.38 $ 2,426,729.86 99.19% - $ 2,426,730.00 99.19% 2017 2,522,251.62 2,505,333.39 99.33% - 2,505,333.39 99.33% 2018 2,668,368.56 2,657,528.51 99.59% - 2,657,528.51 99.59% 2019 2,925,363.57 2,897,116.44 99.03% - 2,897,116.44 99.03% 2020 2,941,641.80 2,858,882.44 97.19% - 2,858,882.44 97.19% 2021 3,194,430.10 3,148,490.28 98.56% - 3,148,490.28 98.56% 2022 3,400,237.41 3,357,875.46 98.75% - 3,357,875.46 98.75% 2023 3,604,286.41 3,563,404.68 98.87% - 3,563,404.68 98.87% 2024 3,665,325.05 3,618,359.21 98.72% - 3,618,359.21 98.72% 2025 3,769,218.00 3,697,986.00 98.11% - 3,697,986.00 98.11% Source: County Assessor Data and City General Ledger, Avenu Insights & Analytics *Includes 1% secured apportionment only
(-) Data Unavailable
(1) Years with over 100% of levy are due to prior year collections Collections
in
Subsequent
Years
Total Collections to Date
649
City of Lynwood
Taxable Sales by Category
(In Thousands of Dollars)
Last Ten Fiscal Years

181

Category Name 2016 2017 2018 2019 2020
A
ccommodation and Food Services $ 775,143 $ 805,897 $ 882,181 $ 920,931 $ 937,880 Agriculture, Forestry, Fishing and Hunting (1,134) (5,939) (1,493) (713) 866 Arts, Entertainment, and Recreation 19 66 58 28 192 Construction 29,148 38,402 39,866 49,469 214,902 Educational Services 4,496 5,134 7,297 6,095 7,006 Information 5,791 5,498 6,476 6,261 6,644 Manufacturing 130,441 158,595 133,110 136,082 110,545 Mining, Quarrying, and Oil and Gas Extraction 127,080 120,270 117,338 117,231 97,609 Other Services (except Public Administration) 45,251 56,703 72,363 51,659 46,286 Professional, Scientific, and Technical Services 17,244 15,306 17,955 17,505 15,614 Real Estate and Rental and Leasing 2,131 4,707 3,817 3,211 2,360 Retail Trade 2,134,665 2,065,858 2,236,612 2,391,267 2,410,540 Utilities 8,935 9,895 11,924 21,474 13,739 All Other Sectors 135,596 136,177 143,943 146,136 152,196 Grand Total $ 3,414,806 $ 3,416,569 $ 3,671,447 $ 3,866,636 $ 4,016,379 Source: Avenu Insights & Analytics
Fiscal Year
The data contained in this report is economic and therefore constantly changing as adjustments, fund transfers, late filings and audits are recorded. The categories listed in previous reports were based on SBOE NAICS codes and have been updated to reflect c
urrent updated CDTFA standards.
650
City of Lynwood
Taxable Sales by Category (Continued)
(In Thousands of Dollars)
Last Ten Fiscal Years

182

Category Name 2021 2022 2023 2024 2025
A
ccommodation and Food Services $ 888,880 $ 1,049,706 $ 1,112,546 $ 1,130,677 $ 1,260,081 Agriculture, Forestry, Fishing and Hunting (11,823) (1,609) 8,184 11,849 2,342 Arts, Entertainment, and Recreation - - - - - Construction 184,008 201,724 245,131 289,193 265,512 Educational Services 4,583 6,053 4,046 3,665 2,406 Information 6,268 7,142 3,861 2,908 1,335 Manufacturing 235,836 215,531 120,629 89,050 82,510 Mining, Quarrying, and Oil and Gas Extraction 106,208 117,605 121,064 129,030 110,484 Other Services (except Public Administration) 52,768 61,415 48,943 45,011 44,781 Professional, Scientific, and Technical Services 19,699 22,554 24,907 25,789 23,139 Real Estate and Rental and Leasing 6,194 2,732 4,352 11,233 13,660 Retail Trade 2,603,528 3,361,883 3,305,402 2,873,492 2,669,259 Utilities 13,843 20,153 13,195 13,857 8,792 All Other Sectors 164,913 162,745 151,917 255,851 244,288 Grand Total $ 4,274,905 $ 5,227,634 $ 5,164,177 $ 4,881,605 $ 4,728,589 Source: Avenu Insights & Analytics
Fiscal Year
The data contained in this report is economic and therefore constantly changing as adjustments, fund transfers, late filings and audits are recorded. The categories listed in previous reports were based on SBOE NAICS codes and have been updated to reflect current updat
ed CDTFA standards.
651
City of Lynwood
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years

183

Fiscal Year City Direct Rate Los Angeles County
2016 1% 1%
2017 2% 1%
2018 2% 1%
2019 2% 1%
2020 2% 1%
2021 2% 1%
2022 2% 1%
2023 2% 1%
2024 2% 1%
2025 2% 1%
Additional Add on sales Tax(1%) effective on Nov 2016 for 10 years. 652
City of Lynwood
Principal Sales Tax Remitters
Current Year and Nine Years Ago

184

Tax Remitter Business Category Tax Remitter B usiness Category 7-Eleven Food Stores Food Markets 7- Eleven Food Stores Food Markets Arco AM/PM Mini Marts Service Stations 99 Cents Only Stores Department Stores Autozone Auto Parts/Repair Airgas USA Chemical Products Becc - MMD Drug Stores Arco AM/PM Mini Marts Service Stations Chevron Service Stations Service Stations Autozone Auto Parts/Repair Curacao Department Stores Chevron Service Stations Service Stations El Super Food Markets CVS/Pharmacy Drug Stores
Elite Roofing Supply Bldg.Matls-Whsle Earle M. Jorgensen Company Heavy Industry Food 4 Less Food Markets El Super Food Markets
Harbor Freight Tools Bldg.Matls-Retail Food 4 Less Food Markets Jack In The Box Restaurants Restaurants Jack In The Box Restaurants Restaurants Jones Lumber Company Bldg.Matls-Retail Jones Lumber Company Bldg.Matls-Retail King Taco Restaurant Restaurants King Taco Restaurant Restaurants Mcdonald's Restaurants Restaurants La Curacao Miscellaneous Retail Ojos Locos Sports Cantina Restaurants Mcdonald's Restaurants Restaurants Shell Service Stations Service Stations Quick & Easy Auto Sales Auto Sales - Used Stop & Save Gas & Market Service Stations Shell Service Stations Service Stations Superior Grocers Food Markets Smart & Final Food Markets Tacos El Gavilan Restaurants Superior Grocers Food Markets Tam's Burgers Restaurants The Kickin Crab Restaurants
The Kickin Crab Restaurants Tj's Metal Manufacturing Heavy Industry Tj's Metal Manufacturing Heavy Industry T-Mobile Miscellaneous Retail Union 76 Service Stations Service Stations Union 76 Service Stations Service Stations United Oil Service Stations Service Stations United Oil Service Stations Service Stations Warehouse Shoe Sale WSS Apparel Stores Walgreen's Drug Stores Drug Stores Source: MuniServices, LLC / Neumo
2024-25 2015-16
653
City of Lynwood
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years

185

FiscalYear
Loans
Payable
Revenue
Bonds
Subscription
Payable
Lease
Payable
Water
Revenue
Bonds
Lease
Payable
2016 $ 42,349 $ 17,254,752 $ - $ - $ 18,645,667 $ - 2017 - 22,598,362 - - 18,122,519 - 2018 - 24,473,520 - - 27,941,177 - 2019 - 56,277,196 - - 27,472,694 - 2020 - 67,287,680 - - 46,816,205 - 2021 778,064 78,086,901 - - 46,323,385 - 2022 1,530,186 75,476,606 410,681 - 45,370,565 - 2023 1,691,775 72,772,365 50,403 41,237 44,387,745 2,891 2024 1,595,843 69,397,739 119,030 531,576 43,374,925 1,560 2025 1,451,237 65,916,146 118,395 1,191,354 42,332,105 223 * Due to the dissolution of the Lynwood Redevelopment Agency in 2012, all of the LRA's debt has been moved to the Successor Agency Private Purpose Trust Fund (Fiduciary Fund).

Governmental Activities Business-type Activities
654
City of Lynwood
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years

186

FiscalYear
Total
Primary
G
overnment
Percentage
of Personal
I
ncome
Debt Per
Capita
2016 $ 35, 942,768 3.88% 496
2017 40,720,881 4.22% 562
2018 52,414,697 1.84% 728
2019 83,749,890 1.28% 1,174
2020 114,103,885 1.66% 1,603
2021 125,188,350 0.94% 1,792
2022 122,788,038 1.05% 1,840
2023 118,946,416 1.26% 1,796
2024 115,020,673 1.46% 1,736
2025 112,200,814 1.64% 1,683
* Due to the dissolution of the Lynwood Redevelopment Agency in 2012, all of the LRA's debt has been moved to the Successor Agency Private Purpose Trust Fund (Fiduciary Fund). 655
City of Lynwood
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025

187

2024-25 Assessed Valuation : $4,846,505,304
Total Debt City’s Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: June 30, 2025 % Applicable (1) Ju ne 30, 2025 Metropolitan Water District $ 17,155,000 0.119% $ 20,414 Compton Community College District 140,875,266 15.920% 22,427,342 Los Angeles Community College District 4,919,505,000 0.005% 245,975 Compton Unified School District 224,563,023 0.666% 1,495,590 Los Angeles Unified School District 11,745,405,000 0.006% 704,724 Lynwood Unified School District 136,221,842 98.286% 133,887,000 Total gross overlapping tax and assessment debt $ 158,781,045 Less: Los Angeles Unified School District General
Obligation
Bonds, Election of 2005, Series J & H Qualified
School 27,674
Total net overlapping tax and assessment debt $ 158, 753,371 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $ 3,036,637,390 0.231% $ 7,014,632 Los Angeles County Superintendent of Schools Certificates of Participation 2,331,775 0.231% 5,386
Compton Unified School District Certificates of Participation 19,265,000 0.666% 128,305 Los Angeles Unified School District Certificates of Participation 225,010,000 0.006% 13,501 Lynwood Unified School District Certificates of Participation 13,865,000 98.286% 13,627,354 City of Lynwood General Fund Obligations 69,868,486 100% 69,868,486 Total direct and overlapping general fund debt $ 90,657,664

OVERLAPPING TAX INCREMENT DEBT (Successor Agency):$ 17,590,000 100% $ 17, 590,000 Total direct debt $ 69,868,486
Total gross overlapping debt $ 197,160,223
Total net overlapping debt $ 197,132,549
Gross combined total debt $ 267,028,709 (2) Net combined total debt $ $267,001,035
Ratios to 2024-25 Assessed Valuation:

Total Gross Overlapping Tax and Assessment Debt 3.28%
Total Net Overlapping Tax and Assessment Debt 3.28%
Total Direct Debt ($69,868,486) 1.44%
Gross Combined Total Debt 5.51%
Net Combined Total Debt 5.51%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,546,383,345):

Total overlapping tax increment debt 1.14%
Source: AMuniServices, LLC / Neumo
California Municipal Statistics, Inc.
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease 656
City of Lynwood
Legal Debt Margin Information
Last Ten Fiscal Years

188

2016 2017 2018 2019 2020
Taxable Assessed Valuation $ 2,894,421,279 $ 3,019,676,094 $ 3,171,145,259 $ 3,486,379,849 $ 3,580,385,304 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation $ 723,605,320 $ 754,919,024 $ 792,786,315 $ 871,594,962 $ 895,096,326 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $ 108,540,798 $ 113,237,854 $ 118,917,947 $ 130,739,244 $ 134,264,449 Total net debt applicable to the limit:

General obligation bonds - - - - - Legal debt margin $ 108,540,798 $ 113,237,854 $ 118,917,947 $ 130,739,244 $ 134,264,449 Fiscal Year
657
City of Lynwood
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years

189

2021 2022 2023 2024 2025
Taxable Assessed Valuation $ 3, 832,313,266 $ 4,087,332,066 $ 4,294,319,812 $ 4,512,983,825 $ 4,821,029,468 Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation $ 958,078,317 $ 1,021,833,017 $ 1,073,579,953 $ 1,128,245,956 $ 1,205,257,367 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit $ 143,711,747 $ 153,274,952 $ 161,036,993 $ 169,236,893 $ 180,788,605 Total net debt applicable to the limit:

General obligation bonds - - - - - Legal debt margin $ 143,711,747 $ 153,274,952 $ 161,036,993 $ 169,236,893 $ 180,788,605 Fiscal Year
658
City of Lynwood
Pledged-Revenue Coverage
Last Ten Fiscal Years

190

Water Revenue Bonds
Debt Service
Fiscal
Year
Utility
Service
Charges
Less:

Operating
Expenses
Net
Available
Revenue Principal Interest
2016 $ 8,429,925 $ 8,508,146 $ ( 78,221) $ 505,000 $ 902,233 2017 9,788,763 7,380,986 2,407,777 530,000 879,999 2018 11,994,596 7,330,103 4,664,493 13,780,000 1,339,416 2019 12,907,193 7,763,221 5,143,972 475,000 934,508 2020 13,841,865 8,963,264 4,878,601 495,000 919,757 2021 14,936,511 9,482,731 5,453,780 505,000 903,523 2022 15,038,510 13,316,117 1,722,393 965,000 1,621,611 2023 14,171,434 10,497,997 3,673,437 1,025,000 1,603,099 2024 14,437,523 13,223,770 1,213,753 1,055,000 1,558,344 2025 16,794,701 13,434,383 3,360,318 1,090,000 1,526,486 * Due to the dissolution of the Lynwood Redevelopment Agency in 2012, all of the LRA's debt has been moved to the Successor Agency Private Purpose Trust Fund (Fiduciary Fund). 659
City of Lynwood
Pledge-Revenue Coverage (Continued)
Last Ten Fiscal Years

191

Public Finance Authority
Revenue Bonds Tax Allocation Bonds Other Debt
Fiscal
Year Principal I nterest Principal Interest Principal Interest 2016 $ 650,000 $ 124,250 $ - $ - $ 40,718 $ 2,891 2017 685,000 561, 475 - - 40,719 - 2018 678,452 713,666 - - - - 2019 3,877,308 909,921 - - - 69,870 2020 9,401,366 1,119,759 - - 1,860,000 753,043 2021 862,307 1,664,728 - - 1,735,000 874,309 2022 690,994 1,769,908 - - 1,855,000 755,561 2023 1,458,854 1,952,944 - - 2,025,932 746,561 2024 1,495,821 1,907,147 - - 2,127,208 592,804 2025 1,534,895 1,863,009 - - 2,199,695 512,821 Debt Service
* Due to the dissolution of the Lynwood Redevelopment Agency in 2012, all of the LRA's debt has been moved to the Successor Agency Private Purpose Trust Fund (Fiduciary Fund). 660
City of Lynwood
Demographic and Economic Statistics
Last Ten Calendar Years

192

Calendar
Year Population (1)
Personal
Income
(thousands
of dollars)
Per
Capita
Personal
Income (2)
Public
School
Enrollment (3)
City
Unemployment
Rate (4)
2016 72,505 $ 927,182 $ 12,787 14,830 8.3% 2017 71,997 964,934 13,402 14,497 6.5% 2018 72,015 1,026,549 14,255 14,211 4.7% 2019 71,343 1,072,686 15,036 13,802 4.4% 2020 71,269 1,114,531 15,638 13,245 21.9% 2021 69,880 1,179,542 16,880 12,791 14.4% 2022 66,723 1,293,674 19,389 12,219 5.0% 2023 66,228 1,497,746 22,615 11,967 5.6% 2024 66,271 1,676,722 25,301 11,386 5.4% 2025 66,660 1,818,430 27,279 10,900 5.6% Source: MuniServices
School District. Any other school districts within the City are not accounted for in the statistic. (3) Student Enrollment reflects the total number of students enrolled in the Lynwood Unified (1) Population projections are provided by the California Department of Finance Projections. (2) Income Data is provided by the Census Bureau, 2010 American Community Survey. (4) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department 661
City of Lynwood
Principal Employers
Current and Nine Years Ago

193

Employer Employees Employees
St. Francis Medical Center 1,980 6.85% 1,930 6.70%
Lynwood Unified School District* 1,584 5.48% 1,618 5.62% California Post-Acute Care (formerly Marlinda
Nursing Home) 188 0.65% 100 0.35%
LA County Sheriff Department 235 0.81% 300 1.04%
PL Development (formerly Aaron Industries Inc.) 201 0.70% 238 0.83% Granada Post Acute 160 0.55%
City of Lynwood 148 0.51% 191 0.66%
Lynwood Post Acute Care Center 128 0.44%
Superior Warehouse Grocers Inc. 127 0.44% 123 0.43%
El Super Grocery Store 120 0.42% 99 0.34%
El Super Grocery Store
Country Villa Lynwood Health Center 102 0.35%
Earle M. Jorgensen Company 122 0.42%
Total Top 10 Employers 4,871 16.85% 4,823 16.75%
.

Source: MuniServices, LLC / Neumo
Source: FY2015-16 -- City of Lynwood ACFR Publication
Results based on direct correspondence with city's local businesses. *Includes classified, certificated and admin
(1) Total City Labor Force provided by EDD Labor Force Data. 28,900 Percent of
Total
Employment
( %)
Percent of
Total
Employment
( %)
2024-25 2015-16
662

City of Lynwood
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years

194

Function/Program 2016 2017 2018 2019 2020
G
eneral Government
City Council 2.5 2.5 2.5 2.5 2.5 City Clerk 4.0 3.5 2.5 3.5 1.5 City Treasurer 1.5 1.5 1.5 1.5 1.5 City Manager 4.0 7.0 4.5 8.0 6.0 Development Services 12.0 16.0 30.0 - - Finance & Administration 15.5 14.5 17.0 15.0 13.0 Human Resources 5.0 4.0 5.0 6.0 5.5 Public Relations 13.0 13.5 - - - Public Works 70.0 68.0 65.0 70.5 55.5 Parks and Recreation 52.5 49.5 57.5 61.0 37.5 Community Development 8.0 - - 30.0 25.5 Technology and media support 5.0 6.0 5.0 4.0 3.0 Fiscal Year
663
City of Lynwood
Full-Time Equivalent City Government Employees
by Function/Program (Continued)
Last Ten Fiscal Years

195
Function/Program 2021 2022 2023 2024 2025
G
eneral Government
City Council 2.5 2.5 2.5 2.5 2.5 City Clerk 2.0 2.0 1.0 2.0 2.0 City Treasurer 1.5 1.5 1.5 1.5 1.5 City Manager 5.0 6.0 6.0 6.0 7.0 Development Services - - - - - Finance & Administration 10.5 10.0 11.0 11.0 11.0 Human Resources 3.5 5.0 4.0 4.0 4.0 Public Relations - - 1.0 2.0 2.0 Public Works 43.0 47.5 44.0 41.0 41.0 Parks and Recreation 18.0 30.1 27.1 28.2 29.6 Community Development 24.0 21.5 25.0 23.5 26.0 Technology and media support 3.0 3.0 3.0 3.0 3.0 Fiscal Year
664
City of Lynwood
Operating Indicators by Functions/Program
Last Ten Fiscal Years

196

Function / Program 2016 2017 2018 2019 2020
G
eneral government
Building permits issued 1,008 959 1,144 571 921 Building inspections conducted 2,928 3,050 2,187 1,352 2,124 Sheriff
Physical arrests 2,294 3,178 2,334 3,036 2,775 Fire
Emergency responses 5,965 5,234 5,526 6,662 6,360 Fires extinguished 163 158 162 118 141 Inspections 1,016 1,354 1,621 1,247 502 Refuse collection
Refuse collected (tons per day) 142 138 91 116 114 Recyclables collected (tons per day) 60 62 46 16 18 Other public works
Potholes repaired 7,800 8,350 9,377 8,569 7,466 Water
Water main breaks 15 3 7 7 7 Average daily consumption
(thousands of gallons) 5,164 5, 164 4,289 4,588 4,561 Fiscal Year
665
City of Lynwood
Operating Indicators by Functions/Program (Continued)
Last Ten Fiscal Years

197
Function / Program 2021 2022 2023 2024 2025
G
eneral government
Building permits issued 852 816 1,103 438 881 Building inspections conducted 1,701 2,440 3,145 1,555 2,815 Sheriff
Physical arrests 1,684 1,645 1,482 1,084 867 Fire
Emergency responses 6,360 6,452 6,618 2,673 4,628 Fires extinguished 141 336 548 249 669 Inspections 502 766 666 491 642 Refuse collection
Refuse collected (tons per day) 116 114 111 131 132 Recyclables collected (tons per day) 23 26 28 24 23 Other public works
Potholes repaired 3,379 3,754 6,200 3,637 1,810 Water
Water main breaks 2 - 5 - 2 Average daily consumption
(thousands of gallons) 3,591 4, 515 4,096 4,344 4,387 Fiscal Year
666
City of Lynwood
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years

198
Function/Program 2016 2017 2018 2019 2020
Sheriff
Stations 1 1 1 1 1 Zone offices - - - - - Patrol units 24 24 24 24 24 Fire Stations 2 2 2 2 2 Other public works
Streets (miles) 90 90 90 90 90 Streetlights 4,175 4,175 4,175 4,175 4,175 Parks and recreation
Acreage 41 41 41 41 41 Playgrounds 5 5 5 5 5 Baseball/softball diamonds 4 4 4 4 4 Soccer/football fields 3 3 3 3 3 Community Centers 4 4 4 4 4 Water
Water mains (miles) 90 90 90 90 90 Fire hydrants 1,100 1,100 1,100 1,100 1,100 Storage capacity (thousands of gallons) 3,000 3,000 3,000 3,000 3,000 Wastewater
Sanitary sewers (miles) 82 82 82 82 82 Storm sewers (miles) 2 2 2 2 2 Fiscal Year
667
City of Lynwood
Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years

199

Function/Program 2021 2022 2023 2024 2025
Sheriff
Stations 1 1 1 1 1 Zone offices - - - - - Patrol units 24 22 24 24 24 Fire Stations 2 2 2 2 2 Other public works
Streets (miles) 90 95 95 95 95 Streetlights 4,175 3,560 3,560 3,560 3,560 Parks and recreation
Acreage 46 46 46 47 47 Playgrounds 8 8 5 9 9 Baseball/softball diamonds 4 4 5 5 5 Soccer/football fields 3 3 3 3 3 Community Centers 4 4 4 5 5 Water
Water mains (miles) 90 90 90 90 90 Fire hydrants 1,100 1,100 1,100 1,100 1,100 Storage capacity (thousands of gallons) 3,000 3,000 3,000 3,000 3,000 Wastewater
Sanitary sewers (miles) 82 82 82 82 82 Storm sewers (miles) 2 2 2 2 2 Fiscal Year
668

AGENDA STAFF REPORT

DATE:

June
2, 2026
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Suja Lowenthal, City Manager
PREPARED BY:

Mark Flores, Director of Recreation and Community Services Jose Trejo, Deputy Director of Recreation and Community Services SUBJECT:

APPROVAL OF A THREE-YEAR AGREEMENT WITH HUMAN
SERVICES ASSOCIATION FOR THE CITY’S SENIOR NUTRITION

MEALS PROGRAM
Agenda Item # 10.1.

Recommendation:

Staff recommends the City Council adopt a resolution (
Attachment 2
) approving a three-year
agreement with Human Services Association for the City’s Senior Nutrition Meals Program in an amount not-to-exceed $120,000 ($40,000 per year), and authorizing the Mayor to execute and the City Clerk to attest the agreement.

Executive Summary:

Staff recommends approval of a new three-year agreement with Human Services Association (HSA) to continue providing the City’s essential Senior Nutrition Meals Program. The proposed agreement preserves uninterrupted congregate and home-delivered meal services for Lynwood seniors, incorporates reasonable per-meal cost and suggested donation adjustments made necessary by rising operational costs, and aligns with County and federal Older Americans Act program requirements. Staff finds the agreement fiscally responsible, consistent with the City’s Contracting and Purchasing Policy and Procedures, and vital for sustaining high-quality nutrition services for Lynwood senior citizens. (REC) Background:

City Council City Council Regular Meeting 669
Meeting Date
Description
March 21, 2023
City Council approved the most recent agreement with Human Services Association for the Senior Nutrition Meals Program – March 21, 2023, resolution number
2023.028
; the current
agreement expires June 30, 2026

The City of Lynwood currently contracts with Human Services Association (HSA) to provide its Senior Nutrition Program, which includes both congregate meals served at the Senior Center and home-delivered meals for homebound seniors.

HSA has provided these services to the City continuously for approximately 14 years, ensuring consistent and reliable nutrition support for older adults in the community. The current contract with HSA is set to expire on June 30, 2026.

The existing program consists of:

Congregate Meals
: Served in the dining room at the Lynwood Senior Center (Monday through Friday), providing a nutritious meal in a social environment that promotes wellness and engagement among seniors.

Home-Delivered Meals
: Delivered to Lynwood seniors that are unable to attend the Senior Center due to medical, physical, or mobility limitations.

With a consistent program participation rate, the annual projection for FY 2025–26 is approximately 19,500 congregate meals and 8,500 home-delivered meals for the year. These figures highlight the ongoing importance of maintaining uninterrupted meal services for senior residents.

Discussion and Analysis:

The City’s senior nutrition meals program is operated through a contracted service provider (HSA) and is partially funded under the Federal Older Americans Act (OAA). Funding for the program is administered at the local level by the Los Angeles County Aging & Disabilities Department (LACADD), which oversees the senior nutrition program and provides oversight to ensure compliance with federal, state, and local requirements. Through this structure, meals are prepared and delivered by contracted service providers that are qualified and approved by the County of Los Angeles.

The City’s existing contract with HSA establishes a per-meal rate within an annual budgeted amount. The current per-meal rate is $1.25, and the suggested voluntary donation is $2.25.

Notably, the per-meal rate has not been adjusted in approximately 14 years, despite significant increases in food, labor, and operational costs over that period. The individual, daily suggested donation was last updated in 2014. HSA’s actual cost per meal is approximately $12. The cost difference is made up through fundraising efforts and the federal and state meal reimbursement subsidies paid through HSA’s contract with LACADD.

City Council City Council Regular Meeting 670
Under the anticipated new agreement, HSA is proposing the following changes:
1 .

Per-Meal Cost
: HSA is requesting an increase in the per-meal cost from $1.25 to $2.00.

This adjustment reflects consideration for the cumulative cost increases over the last 14 years and brings the rate closer to current market rates. HSA will maintain the existing cap on meals served and will not exceed the established annual budget. As a result, there is no anticipated increase in overall program expenditures. 2 .

Suggested Donation Adjustment
: The suggested voluntary individual donation will
increase from $2.25 to $2.75 per meal. Contributions remain voluntary; no eligible senior would be denied service based on inability to pay. The proposed increase is consistent with rates charged by comparable programs in our surrounding communities.

Staff has reviewed the request and determined that the proposed increases are reasonable and consistent with current market conditions and comparable senior nutrition programs.

Without approval of the proposed adjustments, the City risks reduced service levels and jeopardizes the provider’s ability to continue under the existing terms.

Additionally, the State of California is considering a new funding allocation formula for Older Americans Act programs, which is projected to result in an estimated 17 percent reduction in funding to Los Angeles County. If realized, this reduction would directly impact the level of services that can be provided, including the number of meals available to local senior nutrition programs such as Lynwood’s program.

HSA has confirmed that, despite the proposed rate increase, they will continue to serve the maximum number of senior participants within the existing contract amount. The proposed agreement term is three years, with an annual cost of $40,000, for a total “not-to-exceed” amount of $120,000. As proposed, the annual cost of $40,000 to the City would remain the same as in the current contract.

The City of Lynwood’s Purchasing Ordinance requires that contracts for professional or special services in excess of $50,000 receive approval of the City Council, per Lynwood Municipal Code Section 6-3.7. Section 6-3.7(b)(2) of the City’s purchasing ordinance requires the City to conduct an informal bidding process for the award of contracts between $50,001 and $200,000. However, Section 6-3.12 of the purchasing ordinance includes exceptions to the informal bidding process. One of the exceptions applies when “the supplies, equipment, services or contract could be obtained from only one source” (LMC Section 6-3.12(3)).

The above sole source exception applies in this case as the Human Services Association (HSA) is the only County-subsidized provider in our service area. Soliciting informal bids from other potential service providers would mean consideration of non-subsidized firms that could not compete with the subsidized service costs offered by HSA.

Staff requests City Council consider the information provided in this staff report and approve the proposed agreement with HSA. HSA's consistently positive "quality of service" feedback from seniors, HSA's established operational procedures and familiarity with our senior population and their successful 14-year history with the City all add to the justification for continuing service through HSA.

The proposed new agreement with Human Services Association (HSA) would allow the City to continue participating in the subsidized, County-administered senior nutrition program by City Council City Council Regular Meeting 671

1. Exhibit A_ Scope of Work _ Senior Nutritional Program 060226.docx

2. RESOLUTION - Senior_Congregate_Meals_Agreement.docx

3. Professioal_Services_Agreement_-_HSA_Lynwood_Senior_Meals.docx securing meal services from an approved County provider. The proposed contract period of three years aligns with the contract procurement process administered by Los Angeles County for the elderly nutrition program under the OAA grant funds.

Fiscal Impact:

The proposed agreement would continue to use existing program funding sources (50% CDBG funds and 50% General Fund) and would be aligned with anticipated service levels.

The City’s annual cost would remain unchanged at $40,000 per year. The proposed adjustments (per-meal rate from $1.25 to $2.00) would be accommodated within the existing budget, with no additional impact to the General Fund. Funding for the senior nutrition program is included in the FY 2026–27 budget. If approved, appropriate funding to support this program would be included in future fiscal year budgets.

Coordinated With:

City Manager's Office
Finance and Administration Department
City Attorney's Office
ATTACHMENTS:

Description
City Council City Council Regular Meeting 672

Exhibit A
Scope of Services and Time of Performance

Scope of Work

Contractor will provide congregate and home delivered meals service for the City of Lynwood senior citizens lunch program. Contractor will abide by all applicable county, state and federal nutrition regulations pertaining to both congregate and home delive red meal services within the City of Lynwood.

A site manager shall be provided to supervise food service in the designated City lunch room. An administrator shall also be provided to work from the company base to ensure compliance of Contractor obligations to this contract. Both site manager and administrator rates of pay are to be incurred by Contractor.

Congregate Meals Services shall be provided at the following location: 11329 Ernestine Avenue, Lynwood, CA 90262.

Home Delivered Meals shall be pro vided to the names and addresses of program participants identified to Contractor by the City.

Time of Performance

Congregate Meals Services - Meals service are to be provided Monday through Friday from 11:30 a.m. to 12:30 p.m. Contractor will deliver and setup food services to ensure meals are ready to serve by the start of the lunch hour. It is the responsibility of Contractor to ensure that meals are properly prepped and ready to serve by the start of the 11:30 a.m. lunch hour. Contractor will conduct the daily clean up of the kitchen facility used to serve meals. The facility should be properly cleaned no later 1:30 p.m.

Home Delivered Meals Services - Meals will be delivered Monday through Friday from 10:30 a.m. to 1:30 p.m. Participants who sign up for home delivered meals services will be notified of their approximate delivery time upon enrolling in home delivered meals services.

The following holidays are to be excluded from meals services: New Years Day, Martin Luther King Day, Presidents Day, Cesar Chavez Day, Good Friday, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving Day, the day following Thanksgiving Day, and Christmas Day.

Cost of Service

Contractor will charge the City for meals in the following manner:
 $2.00 per each congregate meal
 $2.00 per each home delivered meal

Suggested voluntary donation increase from $2.25 to $2.75 will take in an effect October 1, 2026..

Contractor will ask participants to make a voluntary donation however meals will be provided to participants irrespective of the donation.

673
RESOLUTION No.____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING

A THREE-YEAR AGREEMENT WITH HUMAN SERVICES ASSOCIATION FOR THE CITY’S SENIOR NUTRITION MEALS PROGRAM IN AN AMOUNT NOT -TO-EXCEED $120,000 ($40,000 /YEAR), AND AUTHORIZE THE MAYOR TO EXECUTE THE

AGREEMENT

WHEREAS, meeting the nutrition needs of older Americans is a significant means of maintaining health and wellness in our senior citizen population; and

WHEREAS, the City of Lynwood desires to continue to provide congregate and home-delivered lunch-hour meals, Monday through Friday at the Lynwood Senior Center and to home-bound, elderly adults; and

WHEREAS, on March 21, 2023 the City Council approved an agreement with Human Services Association (HSA), to pro vide congregate meals and home delivered meals for the City’s Senior Nutrition Meals Program; and

WHEREAS, said agreement is set to expire on June 30, 202 6 and a new agreement is needed to continue uninterrupted services for the City’s Senior Nutrition Meals Program; and

WHEREAS, HSA is an approved provider authorized to prepare and deliver meals under the Los Angeles County Aging and Disabilities Department administered senior nutrition program; and

WHEREAS, the proposed agreement is for a three-year term from July 1, 2026 through June 30, 202 9, in an amount not -to-exceed $120,000 total (an annual cost of $40,000); and

WHEREAS, the City’s purchasing ordinance requires an informal bidding process for the award of contracts between $50,001 and $200,000; and

WHEREAS, the City’s purchasing ordinance recognizes the procurement of services from a sole source provider as an exception to the informal bidding process; and

WHEREAS, HSA qualifies as a sole source provider because HAS is the only County-subsidized provider in our service area. Soliciting informal bids from other potential service providers would mean consideration of non -subsidized firms that could not compete with the subsidized service costs offered by HSA; and

WHEREAS, approval of the agreement will ensure the uninterrupted continuation of essential meal services for seniors while maintaining compliance with grant requirements and leveraging outside funding sources; and

674
WHEREAS, the senior nutritional meals program will be paid with funds appropriated in the current Fiscal Year 2026/2027 Budget and subsequent Fiscal Year Budgets designated for these services.

NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL AS FOLLOWS:

Section 1. The Lynwood City Council finds and declares that the foregoing recitals are true and correct, and incorporates said recitals fully into this Resolution as substantive findings.

Section 2. The City Council hereby approves a three -year service agree ment with Human Services Association for the Senior Nutrition Meals Program in an amount not-to-exceed $120,000.

Section 3. That the Mayor is authorized to execute a three-year agreement commencing July 1, 2026 through June 30, 2029, valued at a total not-to-exceed $40,000 per year, in a form approved by the City Attorney.

Section 4. The Mayor is authorized to execute this Resolution for and on behalf of the City of Lynwood.

Section 5. That this Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED and ADOPTED this 2nd day of June, 2026

__________________________
Gabriela Camacho, Mayor

ATTEST:

_________________________ __________________________
Maria Quinonez, City Clerk Dr. Suja Lowenthal, City Manager

APPROVED AS TO FORM: APPROVED AS TO CONTENT:

_________________________ __________________________ Noel Tapia, City Attorney Mark Flores, Director
Recreation and Community Services

675

STATE OF CALIFORNIA }
}
COUNTY OF LOS ANGELES }

I, the undersigned City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held at City Hall on the 2nd day of June 2026, and passed by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Maria Quinonez, City Clerk
STATE OF CALIFORNIA }
}
COUNTY OF LOS ANGELES }

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. ______________ on file in my office and that said Resolution was adopted on the date and by the vote therein stated.
676

Dated this 2nd day of June 2026
_________________________
Maria Quinonez, City Clerk

677

1 PROFESSIONAL SERVICES AGREEMENT

This agreement (“Agreement”) is made as of July 1, 2026 (“Effective Date”) by and between the City of Lynwood, a California municipal corporation ("City") and Human Services Association (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as the “Parties.”

R E C I T A L S

WHEREAS, City is a municipal corporation organized and existing under the laws of the State of California and is authorized to enter into contracts for professional services related to the delivery of meals to seniors; and

WHEREAS, the City desires specialized services of consultant to provide professionally prepared and delivered nutritious meals for eligible senior participants enrolled in the City’s Senior Nutrition Meal Program; and

WHEREAS, Consultant represents that it possesses the necessary qualifications, expertise, experience, equipment, personnel to perform the services. Contractor further represents that all work will be completed in accordance with applicable industry standards and best practices for Senior Nutrition Meal Programs and is able to provide the services set forth in the Scope of Services attached hereto as Exhibit A; and

WHEREAS, the Parties intend that Consultant shall exercise independent judgment and discretion in the performance of the servic es consistent with applicable laws and professional standards.

NOW, THEREFORE, in consideration of performance by the parties of the covenants and conditions herein contained, the parties hereto agree as follows:

1. Company's Scope of Services. The nature and scope of the specific services to be performed by Consultant are as described in Exhibit A.

2. Term of Agreement . This Agreement shall commence on July 1, 2026 and continue through June 30, 2029. This Agreement may be extended by the City Manager for up to six (6) additional months by the City, unless sooner terminated pursuant to the provisions of this Agreement.

3. Compensation.

A. City agrees to compensate Consultant for services under this Agreement in compliance with the schedule set forth in Exhibit B. Consultant shall submit proper monthly invoices in the form and manner specified by City. Each invoice shall include a monthly breakdown of all monthly services performed together with the hours spent on each service. Consultant shall maintain appropriate and necessary document ation supporting the monthly invoices detailing the type of service provided. It shall be available for review by the City at all reasonable times upon request. 678

2 B. Total payment to consultant pursuant to this Agreement shall not exceed $120,000.

C. If at the request of the City, Consultant is required to incur out of pocket expenses (including but not limited to, out-of-town travel and lodging) which are above and beyond the ordinary expenses associated wit h performance of this Agreement, Consultant shall be entitled to reimbursement of such expenses. Consultant shall only be reimbursed for those expenses which: (I) appear on Consultant’s monthly invoices; (II) are accompanied by a copy of the City’s written authorization for Consultant to incur such expenses; and (III) receipts documenting such expenses.

4. General Terms and Conditions. The General Terms and Conditions set forth in Exhibit C, and Exhibit D when applicable, are incorporated as part of this Agreement.

In the event of any inconsistency between the General Terms and Conditions and any other exhibit to this Agreement, the General Terms and Conditions shall control unless it is clear from the context that both parties intend the provisions of the other exhibit(s) to control.

5. Addresses.

City of Lynwood

City of Lynwood
Attn: Suja Lowenthal, City Manager
11330 Bullis Road
Lynwood, CA 90262

Company

Human Services Association
Attn to: Darren Dunaway
6800 Florence Avenue
Bell Garden, CA 90201

6. Exhibits. All exhibits referred to in this Agreement are listed here and are incorporated and made part of this Agreement by this reference.

Exhibit A – Scope of Services
Exhibit B – Compensation Schedule
Exhibit C – General Terms and Conditions
Exhibit D – Use of Generative Artificial Intelligence

679

3 [SIGNATURES ON FOLLOWING PAGE]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written below.

“CITY”

City of Lynwood

By: ______________________________ ______________________ Suja Lowenthal, City Manager Date

“CONSULTANT”

Human Services Association

By: _______________________________ ________________________ Darren Dunaway` Date

ATTEST:

By: ______________________________ ________________________ Maria Quinonez, City Clerk Date

APPROVED AS TO FORM:

By: ______________________________ ________________________ Noel Tapia, City Attorney Date

680

1 EXHIBIT A

SCOPE OF WORK

681

1 EXHIBIT B

COMPENSATION SCHEDULE

Total Contract Value Price: $120,000.00

682

2 EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. Status as Independent Contractor.

A. Consultant is and shall, at all times, remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of the City of Lynwood or otherwise act on behalf of Lynwood as an agent. Neither the City of Lynwood nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City of Lynwood.

B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interests asserted against City by reason of the independent Consultant relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent status of Consultant and the audit in any way fails to sustain the validity of a wholly independent Consultant relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto.

C. Consultant shall fully comply with the workers' compensation law regarding Consultant and Consultant’s employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 1.

D. Consultant represents to the City, and City relies on Consultant’s representations, that Consultant shall serve solely in the capacity of an independent contractor to the City. Neither the City nor any of its agents will have control over the conduct of Consultant or any of Consultant’s employees, except as otherwise set forth in the Agreement. Consultant may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. The City has no duty, obligation, or responsibility to the Consultant’s agents or employees, including the state and federal healthcare (e.g., Affordable Care Act ) coverage requirements. Consultant is solely responsible for any tax penalties associated with the failure to offer affordable coverage to its agents and employees under the state and federal requirements with respect to Consultant’s agents and employees. Consultant warrants and represents that the City will not be responsible and will not be held liable for issues rel ated to Consultant’s status as an independent 683

3 contractor, including Consultant’s failure to comply with Consultant’s duties, obligations, and responsibilities under state and federal requirements . Consultant further agrees to defend, indemnify, and hold the City harmless for any and all taxes, claims, and penalties against the City related to Consultant’s obligations under state and federal requirements.

2. Standard of Performance

Consultant shall perform all work to the highest professional standards and in a manner reasonably satisfactory to the City Manager or his/her designee. No additional or different tasks or services shall be performed by Consultant other than those specified in Exhibit A.

3. Indemnification.

A. Consultant is skilled in the professional calling necessary to perform the services and duties agreed to be performed under this Agreement, and City is relying upon the skill and knowledge of Consultant to perform said services and duties.

B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnities") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless Indemnities from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fee s and disbursements (collectively "Claims"), which Indemnities may suffer or incur or to which Indemnities may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly caused by Consultant’s performance of or failure to perform any services under this Agreement or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, subcontractor, sub consultant or employees, committed in performing any of the services under this Agreement.

Notwithstanding the foregoing, the provisions of this subsection shall not apply to Claims occurring as a result of the City’s sole negligence or willful acts or omissions.

C. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Section from each and every subcontractor, sub consultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required in this Section, Consultant agrees to be fully responsible according to the terms of this Section. Failure of the City to monitor compliance with these requirements imposes no additional obligations on City and will in no way serve as a waiver of any rights hereunder. This obligation to indemnify and defend Indemnities as set forth herein shall survive the termination of this Agreement and is in addition to any rights which City may have under the law. This indemnity is effective without reference to the existence or applicability of any insurance c overage 684

4 which may have been required under this Agreement or any additional insured endorsements which may extend to City.

4. CalPERS Annuitants and Eligibility Indemnity.

A. If the Consultant is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the Consultant must provide the City with written notification of such fact in a minimum of fourteen (14) calendar days prior to commencement of services under this Agreement. Fai lure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the Consultant. If this Agreement remains in place, the Consultant shall execute any amendment(s) to this Agr eement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants.

B. In the event that the Consultant or any employee, agent, or subconsultant of the Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, the Consultant shall indemnify, defend, and hold harmless the City for the payment of any employee contributions for CalP ERS benefits on behalf of the Consultant or its employees, agents, or subconsultants.

C. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by the City, including but not limited to eligibility to enroll in CalPERS as an employee of the City and entitlement to any contribution to be paid by the City for employer contribution and/or employee contributions for CalPERS benefits.

5. Insurance Coverage.

A. Without limiting Consultant’s indemnification of Indemnities pursuant to Section 3 of this Agreement, Consultant shall obtain and provide and maintain at its own expense during the term of this Agreement the types and amounts of insurance as described below:

(I) Consultant shall main tain Commercial General Liability Insurance with coverage at least as broad as Insurance Services Office Commercial General Liability Form CG 00 01 in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be 685

5 accepted.

(II) Consultant shall maintain Business Auto Coverage on ISO Business Auto Coverage Form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

(III) Consultant shall maintain Workers’ Compensation I nsurance (Statutory Limits) and Employer’s Liability Insurance with on a state approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for all covered losses;

(IV) Consultant shall maintain Professional Liability or Errors and Omissions Insurance that covers the services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate.

Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

B. City, its officers, officials, employees and volunteers shall be named as additional insureds on the policy(ies) as to commercial general liability and automotive liability.

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

D. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City thirty (30) days' prior written notice thereof. Any such thirty (30) day notice shall be submitted to CITY via certified mail, return receipt requested, addressed to “Director of Human Resources ,” City of Lynwood, 11330 Bullis Road , Lynwood, California, 90262. Consultant agrees that it will not cancel, reduce or otherwise modify said insurance coverage.

E. Consultant shall submit to City (I) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and ( II) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less than one (1) day prior to beginning of performance under 686

6 this Agreement. Endorsements shall be executed on City’s appropriate standard forms entitled "Additional Insured Endo rsement". Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ effective date. The evidence of insurance shall be U.S. mail or email to:

City of Lynwood
Attn: Risk Manager
11330 Bullis Road
Lynwood, CA 90262
[email protected]

F. Consultant’s insurance shall be primary as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees and volunteers shall be excess of Consultant’s insurance and shall not contribute with it.

G. Consultant agrees that if it does not keep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost. City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of Consultant’s and the cost of such insurance may be deducted, at the option of City, from payments due Consultant.

5. Release of Information/Confidentiality.

A. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the te rmination of this Agreement. Consultant, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. Consultant’s covenant under this section shall survive the termination of this Agreement.

B. Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with a ny summons, complaint, subpoena, notice of deposition, request for documents, inte rrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder. City retains the right, but has no obli gation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to 687

7 provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response

6. Ownership of Work Product.

A. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by the City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of the City or its designees at reasonable times to such books and records; shall give the City the right to examine and audit said books and records; shall permit the City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.

B. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. This does not include any software, programs, me thodologies or systems used in the creation of such work product protected by Consultant or others’ copyrights or other intellectual property . City’s ownership rights apply only to final deliverables provided to City. Consultant retains all rights to any draft, preliminary, or non‑final materials, including analyses, assessments, lead lists, notes, and other intermediate work product , not included in a final deliverable. Such non‑final materials may not be used by City to pursue collections or recoveries in a manner that would eliminate or reduce Consultant’s compensation under this Agreement.

7. Use of Generative Artificial Intelligence. The City realizes and understands the potential benefits of Generative Artificial Intelligence (“GenAI”), through the development and deployment of GenAI, while balancing the risks of technologies. Consultant must notify the City in writing if it: (1) intends to provide GenAI as a deliverable to the City; or (2) intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (a) functionality of a City system, (b) risk to the City, or (c) contract performance as set forth in this Agreement. Should the Consultant knowingly enter into the Agreement with the intentions and/or purpose to utilize GenAI to fulfill its Agreement responsibilities, Consultant agrees to comply with Exhibit D. For 688

8 avoidance of doubt, the term “materially impacts” is defined as a significant, substantial effect, whether financial or operational, that is so important that it would reasonably influence a decision-making process.

Failure to report GenAI to the City may result in termination of this Agreement. The City reserves its right to seek any and all relief it may be entitled to as a result of such non-disclosure by Consultant. Upon notification by Consultant of use of GenAI, the City reserves the right to utilize and implement Exhibit D to determine where the use of GenAI by Contractor is an acceptable level of risk to the City and Contractor agrees to abide by Exhibit D.

“Generative Artificial Intelligence” or “GenAI” is defined as an artificial intelligence system that is machine-based that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the systems’ training data and/or give a set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. The City defines an “AI system” to be any data system, software, hardware, application, tool, or utility that operates in whole or in part using Artificial Intelligence.

8. Conflict of Interest.

A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it.

Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement.

B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to City as a result of the performance of this Agreement, or the services that may be procured by the City as a result of the recommendations made by Consultant’s covenants under this section shall survive the termination of this Agreement.

9. Termination. Notwithstanding any other provision, this Agreement may be duly terminated at any time by the City at its sole discretion with or without cause by serving upon the consultant at least ten (10) days prior written notice (“Notice of Termination”).

Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. Unless expressly agreed upon in writing by the City, the City shall not be obligated to pay for any services rendered nor any costs or expenses paid or incurred after the date of termination. The effective date of termination shall be upon the date specified i n the written Notice of Termination.

Consultant agrees that in the event of such termination, Consultant must refund the City its prorated share, except for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written Notice of Termination, Consultant shall 689

9 discontinue performing services, preserve the product of the services and upon payment for services, turn over to City the product of the services in accordance with written instructions of City.

In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City.

10. Personnel.

A. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services.

Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City's premises.

B. No regular employee of the City shall be employed by the Consultant during the term of this Agreement.

11. Non-Discrimination and Equal Employment Opportunity.

A. Consultant shall not discriminate with respect to any terms of conditions of hair texture and protective hairstyles (such as braids, locks, and twists), color, religious creed (including religious dress and religious grooming practices), national origin, ancestry, cit izenship status, age (40 years and older), sex (including pregnancy, perceived pregnancy, childbirth, breastfeeding, or related medical conditions), gender, gender identity and expression (including transgender identity and expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning (or is perceived to be transitioning), sexual orientation, sex stereotyping, marital status, domestic partner status, military service and veteran status, physical and/or mental disability (including HIV and AIDS), legally protected medical condition or information (including genetic information), protected medical leaves (requesting or approved), status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, their intersectionality of protected characteristics, or activity or any other basis protected by local, state, or federal laws.

City also prohibits discrimination based on the perception that anyone has any of these characteristics. All such discrimination is unlawful and is strictly prohibited at the City.

Consultant will comply with all Federal, State and local law, ordinances, and regulations in employment practices, including, but not limited to recruitment, selection, promotions, terminations, layoffs, compensation, training benefits and other terms and conditions of employment.

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10 B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to conditions of hair texture and protective hairs tyles (such as braids, locks, and twists), color, religious creed (including religious dress and religious grooming practices), national origin, ancestry, citizenship status, age (40 years and older), sex (including pregnancy, perceived pregnancy, childbir th, breastfeeding, or related medical conditions), gender, gender identity and expression (including transgender identity and expression), because an individual has transitioned (to live as the gender with which they identify), is transitioning (or is perc eived to be transitioning), sexual orientation, sex stereotyping, marital status, domestic partner status, military service and veteran status, physical and/or mental disability (including HIV and AIDS), legally protected medical condition or information ( including genetic information), protected medical leaves (requesting or approved), status as a victim of domestic violence, sexual assault, or stalking, enrollment in a public assistance program, their intersectionality of protected characteristics, or act ivity or any other basis protected by local, state, or federal laws.

C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.

11. Assignment. Consultant shall not subcontract, delegate, transfer or assign any interest in this Agreement nor the performance of any of Consultant obligations hereunder, without the prior written consent of City, and any attempt by Consultant to assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect.

12. Performance Evaluation. For any Agreement in effect for twelve (12) months or longer, the City Manager may require a written annual administrative performance evaluation within ninety (90) days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement. The work product required by this Agreement sh all be utilized as the basis for review, and any comments or complaints received by City during the review period, either orally or in writing, shall be considered. City shall meet with Consultant prior to preparing the written report. If any noncompliance with the Agreement is found, City may direct Consultant to correct the inadequacies, or, in the alternative, may terminate this Agreement as provided herein.

13. Compliance with Laws. Consultant shall keep itself informed of State, Federal and Local laws, ordinances, codes and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. Consultant shall at all times comply with such laws, ordinances, codes and regulations. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section. 691

11 14. Licenses. At all times during the term of this Agreement, Consultant shall have in full force and effect all licenses (including a City business license) required of it by law for performance of the services hereunder.

15. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default.

16. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and Consultant.

17. Notices. Any notices, bills, invoices, demands, requests, approvals, or reports required by this Agreement shall be deemed received on (a) t he day of delivery if delivered by hand during Consultant regular business hours or by facsimile before or during Consultant regular business hours; (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section; or (c) Electronic notice, as defined below in this section and as permitted by law . All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:

If to CITY: City of Lynwood
Attn: Dr. Suja Lowenthal, City Manager
11330 Bullis Road
Lynwood, CA 90262
Email: [email protected]

If to Consultant: Professional Turd Specialties, Inc
Attn to: Luis A. Martinez
650 N. Rose Dr.

Placentia, Ca 92870
Ph: 714-334-3783
Email: [email protected]

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above.

Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiv ing party. Any party receiving 692

12 Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form.

18. Dispute Resolution. Disputes regarding the interpretation or application of any provision(s) of this Agreeme nt shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or misrepresentation in con nection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

18. Governing Law. This Agreement shall be construed and interpreted both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California. However, the Parties may agree to submit any dispute to non-binding arbitration.

19. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument.

20. Severability. If any provision or any part of any provision of t his Agreement is found to be invalid or unenforceable, the balance of this Agreement shall remain in full force and effect.

21. Entire Agreement. This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the Parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by the City Manager and attested by the City Clerk.

22. Authority. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.

23. Force Majeure. A Party’s performance of any obligation under this Agreement shall be suspended if, and to the extent that, the Party is unable to perform because of any event of Force Majeure. In any such event, the Party unable to perform shall be required to resume performance of its obligations un der this Agreement upon the termination of the event or cause that excused performance hereunder. “Force Majeure” 693

13 herein means an event which is beyond the reasonable control of a Party, including without limitation, (a) acts of God including flood, fire, earthquake, hurricane or explosion, pandemic; (b) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (c) government order or law that prevents either Party from performing its obligations as set forth in this Agreement; (d) actions, embargoes or blockades in effect on or after the date of this Agreement; (e) action by any governmental authority that prevents either Party from performing its obligations as set forth in this Agreement; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns or other industrial disturbances, other than those involving the affected parties employees; (h) shortage of adequate power or transportation facilities.

Neither Party shall be liable for any delay or default in, or failure of, performance resulting from or arising out of any Force Majeure event, and no such delay, default in, or failure of performance shall constitute a breach by either Party hereunder. Where a Force Majeure event gives rise to a failure or delay in either Party performing its obligations under this Agreement (other than obligations to make payment), those obligations will be suspended for the duration of the Force Majeure event. A Party who becomes aware of a Force Majeure event which gives rise to, or which is likely to give rise to, any failure or delay in performing its obligations under this Agreement, will forthwith notify the other and inform the other of the period for which it is estimated that such failure or delay will continue. The affected Party shall take reasonable steps to mitigate the effects of the Force Majeure event.

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14 EXHIBIT D

USE OF GENERATIVE ARTIFICIAL INTELLIGENCE

This Exhibit defines special requirements agreed to by the City and Contractor regarding the use of Generative Artificial Intelligence (“GenAI”), an Artificial Intelligence (“AI”) system and/or subsystem provided as part of the Contract. This Exhibit governs over any contrary license terms and the City will not agree to any terms that conflict with this Exhibit. Failure of the Consultant to comply with the terms of this Exhibit shall constitute a material breach and/or material impact of the Contract. All definitions provided in this Agreement and its exhibits are incorporated herein.

1. Guiding Principles
The Consultant shall demonstrate that the AI system and its usage, deployment, and maintenance as it pertains to the services outlined in this Agreement do not conflict with the City's AI Policy and Principles therein.

2. Risk Mitigation
The Consultant represents that the AI system is suitable for its intended use by the City and has been developed and will perform in a manner that is in compliance with all applicable laws and regulations.

The Consultant shall maintain, follow, and provide, upon request, a copy of their Risk Management Plan that complies with accepted risk management frameworks, such as the NIST AI Risk Management Framework1, ISO 420012, or other AI risk management governance standard.

The Consultant shall work with the City to evaluate and minimize risks posed by the AI system.
a. AI Incident Response
In the event of an AI incident, at the request of the City, the Consultant shall thoroughly investigate their systems of any suspected AI incide nt and promptly report findings to the City. An “AI incident” is an alleged harm or near harm event to people, property, reputation, and/or technical integrity of the environment where an AI system is implicated. Examples of AI incidents include providing false information, copyright infringement, generating harmful bias, system misuse, exposure of sensitive information, and liability risk.

1 https://www.nist.gov/itl/ai-risk-management-framework 2 https://www.iso.org/standard/81230.html
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15 b. Remediation
At the City’s request, the Consultant will immediately discontinue the use of any AI system involved i n providing services to the City. If the City, in its sole discretion, determines that the AI system is in violation of one or more of the requirements enumerated in Section 4: Requirements for Consultants when Operating AI system(s), below, or that the Consultant does not promptly resolve an AI incident, or that the system does not adequately support the City’s commitment to the City's AI Policy and Principles, then the City will provide the Consultant with notice that they have thirty (30) calendar days to promptly assess and resolve the issue. Potential methods to address such issues include, without limitation, changing the behavior of the AI system or subsystem; supplementing the system or subsystem to achieve the necessary outcomes; replacing the system with a non-AI system that meets the City’s needs; or limiting the function of the AI system or subsystem. After thirty (30) calendar days, the Consultant must provide evidence that the AI system is adequately fixed and ready for re-deployment, or that the AI system is not suitable for use. Failure to follow through with a determined remedial course of action may result in termination of the Agreement without fault to the City.

3. Requirements for Consultants AI System(s)
To the extent permissible by law, the Consultant shall adhere to the following requirements in the course of doing business with or for the City:

1. Updates: Consultant shall provide prior notice for system upgrades that substantially impact the services provided to the City. In the event of a change with a substantial impact, Consultant will provide the City opportunity to stay on the existing system version at the City’s request. Any updates mad e to the AI system that render the AI system unserviceable to provide services as defined in the agreement as determined by the City may be cause for termination by the City.

2. Data ownership : The City retains ownership of any data it provides to the Consultant, as well as data collected or generated specifically on behalf of the City during the course of the Agreement. The Consultant retains ownership of all other data it collects or generates, including data created for the Consultant's general business purposes. The City has the unrestricted right to use its owned data for any purpose. Ownership of such data shall not be transferred to the Consultant or any third party without prior written consent from the City.

3. Data portability: At the City's request, and at no additional cost, the Consultant shall provide all data owned by the City in a format that is easily usable by the City and, to the extent technically feasible, in a structured, commonly used, machine-readable format. The Consultant is not obligated to provide such data more than twice in a 12-month period.
696

16 4. Authorized use: Data owned by the City cannot be used for other commercial applications without written consent from the City.

5. Data rights : Data owned by the City that contains sensitive , personal, or protected information must be able to be deleted, edited, or anonymized at the request of the City or the data subject . Sensitive, personal, or protected information includes, but is not limited to, personal identifiable information, protected health information , payment card information, social security information, financial information, confidential personnel records, data related to minors, and geospatial data.

6. Performance: Provide the City or entity working on behalf of the City with the means to monitor the performance, including the accuracy, of the AI system it uses and report this accuracy to the City. This may include, but is not limited to, the false positive rate, the false negative rate, the true negative rate, the true positive rate , the average percentage error, the mean -squared error, and human judgement scores.

7. Algorithmic bias : Consultant will provide the City with evidence that demonstrates that bias present in the AI system is effectively managed for the context in which it will be deployed. Consultant shall provide information describing in detail how bias is assessed.

8. Human oversight: Provide the City with the means for a human to evaluate and override outputs of the AI system. The human evaluator must be able to override the outputs of the AI system and take precedence over all outputs.

9. Explainability: Provide the City with an explanation of how the AI system generates outputs, including what factors influence the system’s decisions, rule-based logic, training data sources, and probability -based decisions. The City holds the right to communicate its general usage of the AI system and explain its decision-making processes to the public.

10. Notice: If required by the City, provide written notice of the usage of the AI system to data subjects and/or end-users, preferably at the point of service.

11. Process: Consultant shall comply with existing local, state, and federal law for data access and decision appeals related to the use or operation of the system.

12. Ongoing Monitoring: Consultant shall regularly monitor the performance of the AI system to detect and rectify system behavior that violates any of the requirements in this section. Consultant shall promptly communicate the discovery of system behavior that violates any of the requirements in this section to the City, including the potential impact to services.

13. Training: Ensure that appropriate training is available to City staff who may operate the AI system, which may include how to:
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17 1. Protect sensitive or personal information;

2. Mitigate harmful algorithmic bias;

3. Promote optimal performance;

4. Report system errors; and

5. Maintain service delivery if the AI system fails, to the extent possible.

14. Auditing: The City retains the right to observe, assess, or audit any relevant work processes, services, or documents in the course of doing business with the City to confirm that the Consultant (and any relevant sub-contractors) is complying with this Policy. Consultant shall provide access to information, documentation, and personnel required to complete this audit at no additional cost to the City.
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AGENDA STAFF REPORT

DATE:

June
2, 2026
TO:

Honorable Mayor and Members of the City Council
APPROVED BY:

Suja Lowenthal, City Manger
PREPARED BY:

Maria Quinonez, City Clerk
Ma
ria Elena Venegas, Interim Assistant to the City Clerk
SUBJECT:

NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION
Agenda Item # 10.2.

Recommendation:

Staff recommends City Council:
1 .

Adopt a resolution (
Attachment 1
) calling for and giving notice of a General Municipal
Election to be held on Tuesday, November 3, 2026, for the election of three City Council members; requesting consolidation of the election with the County of Los Angeles; requesting the County to provide specific election administration services; adopting regulations for candidates regarding candidate statements; and providing for the determination of tie votes by lot;
2 .

Adopt a resolution (
Attachment 3
) calling for the holding of a General Municipal Election on Tuesday, November 3, 2026, for the election of certain officers as required by the laws of the State of California relating to general law cities; and 3 .

Adopt a resolution (
Attachment 2
) requesting the Board of Supervisors of the County of
Los Angeles to consolidate the General Municipal Election with the statewide General Election to be held on November 3, 2026, pursuant to Section 10403 of the Elections Code.

Executive Summary:

On Tuesday, November 3, 2026, the City of Lynwood will hold a General Municipal Election for three seats on the City Council. The seats currently held by Luis Gerardo Cuellar, Juan Muñoz-Guevara, and Gabriela Camacho are up for election. The individuals elected to these offices will serve four-year terms expiring December 3, 2030. The three resolutions presented for Council consideration call the election, request consolidation with the Los Angeles County General Election, and provide for related election administration matters, including candidate City Council City Council Regular Meeting 699
statement regulations and tie-vote determination. (CC)
Background:

The three resolutions presented for Council consideration call the General Municipal Election, request consolidation of the election with the Los Angeles County General Election held on the same date, request the County to provide specified election administration services, adopt regulations for candidate statements, and provide for the determination “by lot” in the event of a tie vote.

Candidates who elect to submit a Candidate Statement for inclusion in the Sample Ballot Pamphlet would be responsible for the costs associated with translating and printing the statement in both English and Spanish.

Discussion and Analysis:

With approval and adoption of the items presented for Council consideration, the candidate filing period for the November 3, 2026 General Municipal Election will open on July 13, 2026, and close on August 7, 2026, at 5:00 p.m. If nomination documents for an incumbent are not filed by the close of the nomination period, the filing period would be extended to August 12, 2026, at 5:00 p.m., for eligible persons other than the incumbent.

During the nomination period, candidates may file with the City Clerk a Candidate Statement for inclusion in the Official Sample Ballot Pamphlet. Candidate Statements shall not exceed the established word limitation of 200 words and must be filed no later than the final day of the nomination period.

Candidates who elect to submit a Candidate Statement would be responsible for the costs associated with translation and printing of the statement in both English and Spanish, as required by law.

In the event of a tie vote, the proposed resolution provides for the determination of the tie “by lot,” unless the City Council adopts the provisions of Elections Code Section 15651(b) [1]
prior
to the conduct of the election. “By lot” means deciding the matter by a random selection method, such as a coin toss or drawing of names, in order to afford each candidate receiving tie votes a fair opportunity at election.
[1]
California Code, Elections Code - ELEC § 15651 (b) In lieu of resolving a tie vote by lot as provided in subdivision (a), the legislative body of any county, city, or special district not subject to the Uniform District Election Law (Part 4 (commencing with
Section 10500
) of Division 10) may resolve a tie vote by the conduct of a special runoff election involving those candidates who received an equal number of votes and the highest number of votes.

Fiscal Impact:

City Council City Council Regular Meeting 700

1. CC - 06-02-26 - 2026.XXX - Elections.docx

2. CC_-_06-02-26_-_2026.XXX_-
_Requesting_the_Board_of_Supervisors_of_the_County_of_Los_Angeles_to_Consolidate_A_General_Municipal_Election (1).docx

3. CC_-_06-02-26_-_2026.XXX_-_Calling_for_General_Municipal_Election__7_ (1).docx The Los Angeles County Registrar-Recorder/County Clerk estimated the election cost to be $133,891.32 (including an initiative) or $115,265.18 (without an initiative), based on an estimated voter registration totaling 31,948 registered voters. The November 2026 election costs are included in the FY 2026–27 Adopted General Fund budget.

Coordinated With:

City Manager
City Attorney
ATTACHMENTS:

Description
City Council City Council Regular Meeting 701
1 RESOLUTION NO. 2026.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA (1) CALLING FOR AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTIO N TO BE HELD ON TUESDAY, NOVEMBER 3 , 2026 FOR THE ELECTION OF THREE (3) CITY COUNCIL MEMBERS; (2) REQUESTING CONSOLIDATION OF SUCH ELECTION WITH THE

COUNTY OF LOS ANGE LES WITH ANY AND ALL ELECTIONS HELD
ON SUCH DATE ; (3) REQUESTING THE COUNTY OF LOS ANGELES

TO PROVIDE SPECIFIC ELECTION ADMINISTRATION SERVICES FOR SUCH ELECTION; (4) ADOPTING REGULATIONS FOR CANDIDATES

FOR ELECTIVE OFFICE FOR SUCH ELECTION REGARDING
CANDIDATE STATEMENTS ; AND (5) PROVIDING FOR THE

DETERMINATION OF TIE VOTES BY LOT UNLESS THE CITY COUNCIL ADOPTS THE PROVISIONS OF ELECTIONS CODE SECTION 15651(b)

PRIOR TO THE CONDUCT OF THE ELECTION RESULTING IN THE TIE VOTE

WHEREAS, under the provision of the laws relating to general law cities in the State of California, a General Municipal Election of the City of Lynwood (the “City”) shall be conducted on Tuesday, November 3, 2026, for the election of the following municipal officers: three (3) City Council Members for a four-year term; and WHEREAS, it is desirable that the City’s November 3, 2026 General Municipal Election be consolidated with any and all elections to be administered by Los Angeles County (the “County”) on the same date and that the city have the same precincts, polling stations, and election officers within the city for such election; and WHEREAS, the City Council wishes for the Office of the Registrar - Recorder/County Clerk (the “Registrar”) to canvass the returns of the City’s November 3, 2026 General Municipal Election; and
WHEREAS, the City seeks the provision of election services from the Registrar relating to the conduct of the City’s November 3, 2026 General Municipal Election; and WHEREAS, the City Council approves the printing of the General Municipal Election information for the election to be held on Tue sday, November 3, 2026, in the languages requiring translation pursuant to the Voting Rights Act of 1965 and other legal provisions; and

WHEREAS, Elections Code Section 13307 provides that the City may adopt regulations pertaining to the recovery of certain costs associated with the printing, handling, translation, and mailing of candidate statements as filed with the elections officer; and

WHEREAS, the City shall compensate the County for all nece ssary expenses 702
2 incurred by the Registrar in performing election services for the City; and

WHEREAS, tie votes shall be determined by lot unless the City Council adopts the provisions of Elections Code Section 15651(b) prior to the conduct of the election resulting in the tie vote.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to general law cities, the City Council hereby calls and orders a General Municipal Election on Tuesday, November 3, 2026, to be held in the City of Lynwood for the purpose of electing three (3) City Council Members for the full term of four years.

SECTION 2. That pursuant to the requirements of Elections Code section 10403, it is respectfully requested that the Board of Supervisors of the County consent and agree to the consolidation of the City’s General Municipal Election on Tuesday, November 3, 2026 with the County-administered election of the same date.

SECTION 3. That, in connection with the Registrar’s administration of the City’s November 3 , 2026 General Municipal Election , the City further requests that the Registrar be authorized and directed to: (a) review and verify Vote By Mail voter applications and signatures; (b) conduct registered voter verifications (including signature verifications) associated with the processi ng of any proposed General Municipal Election ballot measure; (c) provide the City of Lynwood with the appropriate election precinct data, to the extent required; (d) make available to the City of Lynwood such election facilities, ballot casting equipment and assistance as may be necessary to conduct the election in compliance with state law and the Board of Supervisor’s approval; (e) canvass the election returns; (f) print and supply ballots for the election; (g) mail the City of Lynwood’s sample ballots, including ballot measure question, arguments, rebuttals and impartial analysis; and (h) administer the City of Lynwood’s General Municipal Election in all respects as if it were part and parcel of any other County - administered election, implementing all su ch legally required or customarily employed measures and practices as may be necessary to conduct the election in a timely and legally compliant manner.

SECTION 4. That the City of Lynwood shall reimburse the County for any costs associated with the administration o f the City ’s November 3, 2026 General Municipal Election.

SECTION 5. That the City hereby consents to have its General Municipal Election on Tuesday, November 3, 2026 consolidated with any and all elections conducted on such date within the County.

703
3 SECTION 6. That the ballots to be used at the election shall be in form and content as required by law or as directed by the Registrar to facilitate the consolidation of the City’s November 3, 2026 General Municipal Election with the County-administered election of the same date.

SECTION 7. That the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 8. That vote centers for the election shall be open as required during the identified voting period pursuant to Elections Code sections 4007 and 14401.

SECTION 9. That the City Council authorizes the City Clerk to administer said election, and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

SECTION 10. That p ursuant to Section 13307 of the Elections Code, each candidate for elective office to be voted for at the City’s November 3 , 2026 General Municipal Election may prepare a candidate statement on a form acceptable to the County Clerk and made available through the City Clerk.

SECTION 11. That p ursuant to Section 13307(a)(1) of the Elections Code , candidate statements may include the following:
(A) The name, age, and occupation of the candidate; and (B) A brief description of no more than 200 words of the candidate’s education and qualifications as expressed by the candidate himself or herself.

SECTION 12. That pursuant to Elections Code Section 13307(a)(1), candidate statements shall not include the following:
(A) The party affiliation of the candidate; or
(B) References to membership or activity in partisan political organizations.

SECTION 13. That all prospective candidates should be aware of the holding in Dean v. Superior Court (1998) 62 Cal.App.4th 638, which holds that a statement prepared by a candidate for inclusion in the voters’ pamphlet may not include comments or statements concerning the qualifications (or alleged lack of qualifications) of one’s opponents. Candidates, in an abundance of caution, should avoid making any reference to opponents in their candidate statements. Candidates should seek the advice of private legal counsel if unsure as to whether their candidate statement does or does not comply with applicable law before filing.

SECTION 14. That the candidate statement shall be filed in typewritten form at the Office of the City Clerk at the time the candidate’s nomination papers are filed. The 704
4 candidate statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

SECTION 15. That subject to any logistical constraints imposed by the Registrar by virtue of consolidation, the City Clerk shall have translated (from English to other languages authorized under the Voting Rights Act of 1965 and other legal provisions ) and printed in the sample ballot only the candidate statement of those candidates who have properly requested it.

SECTION 16. That n o candidate for any elected office of the City shall be permitted to include additional materials in the voters’ pamphlet and sample ballot package.

SECTION 17. That e ach candidate for any of the offices to be elected at the General Municipal Election to be conducted on November 3, 2026, who files a candidate statement shall, as a condition of having his or her candidate statement included in the sample ballot , concurrently deposit with the City Clerk an amount, as reasonably estimated by the City Clerk, to pay in advance his or her estimated pro rata share of the actual costs of printing and handling such candidate statements incurred by the City of Lynwood and/or the County Clerk as a result of providing such service at the time of filing such statement with the City Clerk. In the event that the amount paid as a deposit by a candidate includes overpayment of actual costs incurred by the City of Lynwood and/or the County Clerk, the City Clerk shall prorate the excess amount among the candidates and refund the excess amount paid withi n thirty (30) days following the date of the election.

SECTION 18. That the City Clerk shall provide each candidate or candidate’s representative a copy of this Resolution at the time nominating petitions are issued.

SECTION 19. That the City Council has determined that the action to be taken in the event of a tie vote is as follows: by lot pursuant to Elections Code Section 15651(a), unless the City Council adopts the provisions of Elections Code 15651(b) prior to the conduct of the election resulting in the tie vote.

SECTION 20. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 21. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 22. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

705
5 SECTION 23. That the City Clerk is hereby directed to deliver a certified copy of this resolution to the Board of Supervisors of the County of Los Angeles and to transmit an electronic copy to the Board of Supervisors and the Registrar-Recorder/County Clerk.

PASSED, APPROVED and ADOPTED this 2ND day of June, 2026.

__________________________
Gabriela Camacho,
Mayor

ATTEST: APPROVED AS TO FORM:

Maria Quinonez, Noel Tapia,
City Clerk City Attorney

706
6 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of said City at its special meeting thereof held in the City Hall of the City on the 2ND day of June, 2026.and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Maria Quiñonez,
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. 2026.XXX on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this 2ND day of June, 2026.

Maria Quiñonez,
City Clerk
707
1 RESOLUTION NO. 2026.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD,

CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF LOS ANGELES TO CONSOLIDATE A GENERAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 3, 2026, WITH

THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE
PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE
WHEREAS, the City Council of the City of Lynwood called a General Municipal Election to be held on November 3, 2026, for the purpose of the election of three (3) Members of the City Council, each to hold office for a term of four (4) years ending in November 2030 and;
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and tha t within the City the precincts, polling places, and election officers of the two elections be the same, and that the county election department of the County of Los Angeles canvass the returns of the General Municipal election and that the election be hel d in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County Los Angeles is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3 , 2026, for the purpose of the election of three (3) Members of the City Council, each to hold office for a term of four (4) years, expiring on December 3, 2030.

Section 2. That the county election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide or special election.

Section 3. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election.

Section 4. That the City of Lynwood recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County any costs.
708
2 Section 5. That the City Clerk is here by directed to file a certified copy of this Resolution with the Board of Supervisors and the county election department of the County of Los Angeles
Section 6. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED and ADOPTED this 2ND day of June, 2026.

Gabriela Camacho,
Mayor

ATTEST: APPROVED AS TO FORM:

Maria Quinonez, Noel Tapia,
City Clerk City Attorney

709
3 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of said City at its special meeting thereof held in the City Hall of the City on the 2ND day of June, 2026 and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Maria Quiñonez,
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. 2026.XXX on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this 2ND day of June, 2026.

Maria Quiñonez,
City Clerk
710
1 RESOLUTION NO. 2026.XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD,

CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL
MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3 ,
2026, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY

THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA

RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 3, 2026, for the election of Municipal Officers.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, is hereby called and ordered to be held in the City of Lynwood, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing t hree (3) Members of the City Council for the full term of four years.

Section 2. That the ballots to be used at the election shall be in form and content as required by law.

Section 3. That the City Clerk is authorized, instructed and directed to coordinate with the County of Los Angeles, Registrar-Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter, and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

Section 4. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Elections Code Section 10242, except as provided in Section 14401 of the Elections Code of the State of California.

Section 5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

Section 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

Section 7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Los 711
2 Angeles Registrar-Recorder/County Clerk, the City Council, in accordance with Election Code Section 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.

Section 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

Section 9. The City Council authorizes the City Clerk to administer said election, and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

PASSED, APPROVED and ADOPTED this 2ND day of June, 2026

Gabriela Camacho,
Mayor

APPROVED AS TO FORM: ATTEST:

Maria Quinonez, Noel Tapia,
City Clerk City Attorney

712
3 STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of said City at its special meeting thereof held in the City Hall of the City on the 2ND day of June, 2026 and passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Maria Quiñonez,
City Clerk

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )

I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. 2026.XXX on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this 2ND day of June, 2026

Maria Quiñonez,
City Clerk
713