Montebello City Council
April 10, 2023

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

87 Note 6 – Long-Term Liabilities

The summary of changes in the governmental activities long-term liabilities for the year ended June 30, 2022 is as follows:

A. Governmental Activities

Balance
July 1, 2021 Balance Due Within Due in More
(As Restated) Additions Deletions June 30, 2022 One Year Than One Year Governmental Activities:

Bonds Payable, net:
2014B Lease Revenue Refunding Bonds 5,305,000 $ - $ (780,000)$ 4,525,000 $ 820,000 $ 3,705,000 $ 2014C Lease Revenue Refunding Bonds 1,806,860 - (420,200) 1,386,660 439,300 947,360 2019ABC Sales Tax Revenue Bonds 24,115,000 - (870,000) 23,245,000 905,000 22,340,000 2020 Pension Obligation Bonds 108,678,726 - (3,805,827) 104,872,899 3,882,823 100,990,076 Unamortized Premiums/(Discounts)
2014B Lease Revenue Refunding Bonds 617,664 - (102,944) 514,720 - 514,720 2014C Lease Revenue Refunding Bonds (1,939) - 484 (1,455) - (1,455) 2019ABC Sales Tax Revenue Bonds 3,171,379 - (181,897) 2,989,482 - 2,989,482 Finance Purchase:

Transportation and Public Safety Equipment 1,402,552 - (618,969) 783,583 193,634 589,949 Notes Payable:

ABM Notes Payable 5,785,000 - (632,826) 5,152,174 330,966 4,821,208 United States Department of Housing
and Urban Development - CDBG 1,994,000 - (425,000) 1,569,000 445,000 1,124,000 Southern California Edison 23,779 - (3,020) 20,759 3,020 17,739 Claims Payable 23,601,230 7,018,256 (3,174,875) 27,444,611 6,696,705 20,747,906 Compensated Absences 2,977,363 4,110,755 (1,495,936) 5,592,182 2,852,662 2,739,520 Total Gove rnme ntal Acti vi ti e s 179,476,614$ 11,129,011 $ (12,511,010) $ 178,094,615 $ 16,569,110 $ 16 1,525,505$

2014B Lease Revenue Refunding Bonds

On September 10, 2014, the Financing Authority issued the 2014 Lease Revenue Refunding Bonds, Series B, of $10,040,000 which repaid the $12,595,000 of principal due on the 2000 COPs. The City received a premium on the bond issue in the amount of $1,338,273 and incurred a loss of $294,258 in the bond defeasance. The bond premium and loss on defeasance are amortized over the life of the refunded bonds. The Bonds are payable from payments made by the City to the Financing Authority pledging public facilities consisting of the City Hall and Police Department pursuant to the Lease Agreement. The City is required under the Agreement to make payments in each fiscal year to pay the annual principal and in terest due on the Bonds. Annual installments are due November 1, 2014 through November 1, 2026. Interest rates on the 2014 Lease Revenue Refunding Bonds, Series B range from 0.30% to 5.0%. The outstanding balance at June 30, 2022 was $4,525,000.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

88 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

2014B Lease Revenue Refunding Bonds (Continued)

The future annual debt service requirements for 2014 Lease Revenue Refunding Bonds, Series B are as follows:

June 30, Principal Interest Total
2023 820,000$ 205,750$ 1,025,750$
2024 860,000 163,750 1,023,750
2025 905,000 119,625 1,024,625
2026 945,000 73,375 1,018,375 2027 995,000 24,875 1,019,875 Subtotal 4,525,000 587,375 5,112,375 Add - premium 514,720 - 514,720 Total 5,039,720$ 587,375$ 5,627,095$
For the Year Ending

2014C Lease Revenue Refunding Bonds

On September 10, 2014, the Financing Authority issued 2014 Lease Revenue Refunding Bonds, Series C of $5,395,000 which defeased the principal due on the 2001 Certificate of Participation. The Bonds are payable from payments made by the City to the Finance Authority pledging public facilities consisting of the City Hall and Police Department pursuant to the Agreement. The City is required under the Agreement to make payments in each fiscal year to pay the annual principal and interest due on the Bonds. Interest rates on the 2014 Lease Revenue Refunding Bonds, Series C range from 0.40% to 4.07%. Annual installments are due November 1, 2014 through November 1, 2024.

The governmental activities’ share (76.4%) from the 2014 Lease Revenue Refunding Bonds, Series C is $4,121,780 and the Golf Course Enterprise Fund’s share (23.6%) is $1,273,220. The governmental activities outstanding balance at June 30, 2022 was $1,386,660.

The future annual debt service requirements for 2014 Lease Revenue Refunding Bonds, Series C are as follows:

For the Year Ending
June 30, Principal Interest Principal Interest Principal Interest Total 2023 439,300 $ 45,584 $ 135,700 $ 14,081 $ 575,000 $ 59,665 $ 634,665 $ 2024 462,220 28,689 142,780 8,862 605,000 37,551 642,551 2025 485,140 9,873 149,860 3,050 635,000 12,923 647,923 Subtotal 1,386,660 84,146 428,340 25,993 1,815,000 110,139 1,925,139 Less - discount (1,455) - (449) - (1,904) - (1,904) Total 1,385,205$ 84,146$ 427,891$ 25,993$ 1,813,096$ 110,139$ 1,923,235$ Governmental Activities Golf Course Enterprise Fund Total

The 2014B and 2014C Lease Revenue Refunding Bonds are secured and payable solely from Revenues payable by the City pursuant to the Agreement and subsequent Amendments to the Agreement relating to certain real properties and improvement located on the Property, and the other asses pledged thereafter under the Indenture. In accordance with the Indenture, the MPFA will satisfy the applicable Reserve Requirement of each Reserve Account established under the Indenture with a Municipal Bond Debt Service Reserve Insurance Policy.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

89 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

2019ABC Sales Tax Revenue Bonds

On December 10, 2019, the Financing Authority issued $24,945,000 in Sales Tax Revenue Bonds, 2019 Series A, B, and C, for the “Paving the Way” citywide road construction and improvement project. The bonds are secured by pledged Measure M, Measure R, and Proposition C sales tax revenues derived by Los Angeles County transportation sales tax levies approved by the voters.

Interest rates on the Sales Tax Re venue Bonds, 2019 Series A, B, and C range from 4.0% to 5.0%. Annual installments are due June 1, 2021 through June 1, 2040. The outstanding balance at June 30, 2022 was $23,245,000.

The future annual debt service requirements for 2019A, B, and C Sales Tax Revenue Bonds are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 905,000 $ 931,138 $ 1,836,138 $ 2024 935,000 894,938 1,829,938 2025 975,000 857,538 1,832,538 2026 1,020,000 818,538 1,838,538 2027 1,055,000 777,738 1,832,738 2028-2032 6,125,000 3,042,688 9,167,688 2033-2037 7,565,000 1,599,488 9,164,488 2038-2040 4,665,000 305,438 4,970,438 Subtotal 23,245,000 9,227,500 32,472,500 Add - premium 2,989,482 - 2,989,482 Total 26,234,482 $ 9,227,500 $ 35,461,982 $

2020 Pension Obligation Bonds

On May 27, 2020, the City issued Pension Obligation Bonds, Series 2020 for $153,425,000 which was used to pay down the City’s unfunded actuarial liability (“UAL”) to the California Public Em ployees’ Retirement System (“CalPERS”). Interest rates on the 2020 POBs range from 1.94% to 4.3% and will mature in 2045.

The General Fund share (73.33%) of the 2020 Pension Obligation Bonds is $108,678,726 and the Transit Fund’s share (26.67%) is $39,526,274.

At June 30, 2022, the outstanding balance for the governmental activities’ 2020 Pension Obligation Bonds was $104,872,899. The future annual debt service requirements for are as follows:

For the Year Ending
June 30, Principal Interest Principal Interest Principal Interest Total 2023 3,882,823 $ 3,813,331 $ 1,412,177 $ 1,386,902 $ 5,295,000 $ 5,200,233 $ 10,495,233 $ 2024 3,967,153 3,728,957 1,442,847 1,356,216 5,410,000 5,085,173 10,495,173 2025 4,062,482 3,633,627 1,477,518 1,321,544 5,540,000 4,955,171 10,495,171 2026 4,161,477 3,531,943 1,513,523 1,284,562 5,675,000 4,816,505 10,491,504 2027 4,282,472 3,414,173 1,557,528 1,241,729 5,840,000 4,655,902 10,495,902 2028-2032 23,494,932 14,976,894 8,545,068 5,447,072 32,040,000 20,423,966 52,463,966 2033-2037 27,971,729 10,408,192 10,173,272 3,785,442 38,145,001 14,193,634 52,338,634 2038-2042 25,056,861 4,681,048 9,113,139 1,702,490 34,170,000 6,383,538 40,553,538 2043-2045 7,992,970 555,369 2,907,030 201,987 10,900,000 757,355 11,657,355 Total 104,872,899 $ 48,743,534 $ 38,142,101 $ 17,727,943 $ 143,015,000 $ 66,471,477 $ 209,486,477 $ Governmental Activities Transit Enterprise Fund Total

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

90 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Transportation and Public Safety Equipment

The City entered into various finance purchase agreements for the acquisiti on of certain transportation and public safety equipment. The securities for the financing agr eements are the equipment themselves, and will be surrendered to the lender in case of payment default. The outstanding balance at June 30, 2022 was $783,583.

The future debt service payments as of June 30, 2022 are as follows:

June 30, Principal Interest Total
2023 193,634$ 30,624$ 224,258$
2024 191,183 21,799 212,982
2025 93,417 14,744 108,161
2026 71,993 11,970 83,963
2027 74,815 9,148 83,963
2028-2029 158,541 9,382 167,923 Total 783,583$ 97,668$ 881,251$
For the Year Ending

ABM Notes Payable

The City entered into a contract with ABM Building Solutions to finance a citywide energy efficiency upgrade project. The $6.5 million project replaced light fixtures, HVAC, and other infrastructure with more energy-efficient products (i.e., LED lighting, etc.). The goal is to reduce electrical usage by upgrading high-energy use infrastructure. The City was able to accomplish this by financing the entir e cost of the project. The $6.5 million cost is amortized over fifteen years, with payments on the note due July 1 of each year. July 1, 2021 was the first payment on the note. The debt service is split between th e General Fund (89%) and th e Transit Enterprise Fund (11%) based on the ratio of infrastructure in Transit vs. non-Transit operations.

The amount outstanding for governmental activities at June 30, 2022 was $5,152,174. The annual debt service requirements for the governmental activities are as follows:

June 30, Principal Interest Principal Interest Principal Interest Total 2023 330,966$ 151,873$ 40,906$ 18,771$ 371,872$ 170,644$ 542,516$ 2024 340,722 142,117 42,112 17,565 382,834 159,682 542,516 2025 350,766 132,073 43,353 16,324 394,119 148,397 542,516 2026 361,105 121,734 44,631 15,046 405,736 136,780 542,516 2027 371,750 111,089 45,947 13,730 417,697 124,819 542,516 2028-2032 2,029,728 384,468 250,865 47,519 2,280,593 431,987 2,712,580 2033-2036 1,367,137 81,380 168,972 10,058 1,536,109 91,438 1,627,547 Total 5,152,174$ 1,124,734$ 636,786$ 139,013$ 5,788,960$ 1,263,747$ 7,052,707$ For the Year Ending
Governmental Activities Transit Enterprise Fund Total

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

91 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

United States Department of Housing and Urban Development - CDBG

In November 2005, the City borrowed $6,500,000 from the United States Department of Housing and Urban Development (“HUD”) to provide for funds to pay for street improvements. The principals are due annually from August 1, 2019 to August 1, 2025. Interest are due on due August 1 and February 1 at rate of 2.6% to 2.7%.

The amount outstanding at June 30, 2022 was $1,569,000. Interest and principal are due as follows:

June 30, Principal Interest Total
2023 445,000$ 35,467$ 480,467$
2024 493,000 23,347 516,347
2025 548,000 9,583 557,583
2026 83,000 1,136 84,136
Total 1,569,000$ 69,533$ 1,638,533$
For the Year Ending

Southern California Edison (“SCE”) On-Bill Financing Loan

On March 13, 2017 and January 9, 2019, the City entere d into a zero-interest loan agreement with Southern California Edison (“SCE”) for the Ener gy Management Solutions Incentives A pplication for the installation of certain energy efficient equipment of which is to be repaid over ten years.

SCE may determine the loan to be breached and the City to be in default if the City (1) sells, assigns or otherwise transfers ownership, possession or title of the site or the equipment, (2) fails to pay the money payment when due, (3) closes, discontinues or otherwi se causes the termination of the service account(s), or (4) otherwise breaches this agreement, and the breach is not cured as specified therein. Following a breach, SCE shall have the right to declare the entire unpaid balance of the loan obligation due and payable.

The amount outstanding at June 30, 2022 was $20,759. The annual debt service requirements on this loan are as follows:

June 30, Principal Interest Total
2023 3,020$ -$ 3,020$ 2024 3,020 - 3,020 2025 3,020 - 3,020 2026 3,020 - 3,020 2027 3,020 - 3,020 2028-2029 5,659 - 5,659 Total 20,759$ -$ 20,759$ For the Year Ending

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

92 Note 6 – Long-Term Liabilities (Continued)

A. Governmental Activities (Continued)

Claims Payable

Refer to Note 7 for more information on these liabilities.

Compensated Absences

The compensated absences are to be liquidated primarily by the General Fund at June 30, 2022 was in the amount of $5,592,182.

B. Business-Type Activities

Balance Balance Due Within Due in M ore
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year Business-Type Activities
Bonds Payable, net:

Hilton Hotel 2019A Revenue Refunding Bonds 10,200,000$ - $ - $ 10,200,000$ 650,000 $ 9,550,000 $ Golf 2014A Revenue Refunding Bonds 1,635,000 - (180,000) 1,455,000 190,000 1,265,000 Golf 2014C Revenue Refunding Bonds 558,140 - (129,800) 428,340 135,700 292,640 Home2Suites 2016A Revenue Refunding Bonds 52,795,000 - (1,110,000) 51,685,000 1,165,000 50,520,000 Transit 2020 Pension Obligation Bonds 39,526,274 - (1,384,173) 38,142,101 1,412,177 36,729,924 Unamortized Premiums/(Discounts)
Hilton Hotel 2019A Revenue Refunding Bonds 1,277,978 - (94,665) 1,183,313 - 1,183,313 Golf 2014A Revenue Refunding Bonds 55,563 - (6,944) 48,619 - 48,619 Golf 2014C Revenue Refunding Bonds (599) 150 - (449) - (449) Home2Suites 2016A Revenue Refunding Bonds 5,239,841 - (206,836) 5,033,005 - 5,033,005 Finance Purchase:

Motorolla - Transit 137,229 - (137,229) - - - PNC Equipment - Golf 102,971 (53,105) 49,866 49,866 - Notes Payable:

ABM Notes Payable - Transit 715,000 - (78,214) 636,786 40,906 595,880 Southern California Edison - Golf 78,645 - (33,969) 44,676 33,969 10,707 Quiet Cannon - Golf 47,018 - (47,018) - - - Acuna Park Notes Payable - Water 257,864 - (76,307) 181,557 - 181,557 Compensated Absences 1,294,524 736,788 (756,424) 1,274,888 880,294 394,594 Total Business-Type Activities 113,920,448$ 736,938 $ (4,294,684)$ 110,362,702$ 4,557,912 $ 105,804,790$

Montebello Hilton Hotel Revenue Bonds

On December 19, 2019, the Financing Authority is sued $10.2 million 2019 Lease Revenue Refunding Bonds, Series A to refund 2004A Revenue Refunding Bonds, resulting in a net present value savings of approximately $1.4 million. The 2004A Revenue Refundi ng Bonds were fully redeemed on January 21, 2020. The prior bond proceeds were used to finance the acquisition, construction, and equipping of hotel facility (Project) located adjacent to the Montebello municipal golf course and the Quiet Cannon Restaurant and Conference Facility. The bonds are secured by the revenues of the hotel and mature in December 2034. Interest rate on the 2019 Lease Revenue Refunding Bonds, Series A is at 4.0%. Principal amounts are due December 1, 2022 through December 1, 2034. The outstanding balance at June 30, 2022 was $10,200,000.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

93 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

The annual future debt service requirements are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 650,000 $ 395,000 $ 1,045,000 $ 2024 685,000 368,300 1,053,300
2025 700,000 340,600 1,040,600
2026 715,000 312,300 1,027,300
2027 730,000 283,400 1,013,400
2028-2032 3,965,000 956,900 4,921,900 2033-2034 2,755,000 170,900 2,925,900 Subtotal 10,200,000 2,827,400 13,027,400 Add - premium 1,183,313 - 1,183,313 Total 11,383,313$ 2,827,400$ 14,210,713$

2014A Lease Revenue Refunding Bonds

On September 10, 2014, the Financing Authority i ssued 2014 Lease Revenue Refunding Bonds Series A of $2,755,000 which repaid the outstanding principal due on the 1999 COPs. The City received a premium on the bond issue in the amount of $104,175 and incurred a lo ss of $87,777 in the bond defeasance. The bond premium and loss on defeasance are amortized over the life of the refunded bonds. The Bonds are payable from payments made by the City to the Finance Authority pledging public fac ilities consisting of the City Hall and Police Department pursuant to the Agreement.

The City is required under the Agreement to make paymen ts in each fiscal year to pay the annual principal and interest due on the Bonds. Annual Installments are due from November 1, 2014 through November 1, 2028. Interest rates on the 2014 Series A Lease Revenue Refunding Bonds range from 0.30% to 3.5%. The outstanding balance at June 30, 2022 was $1,455,000.

The annual future debt service requirements are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 190,000 $ 44,538 $ 234,538 $ 2024 195,000 37,813 232,813
2025 200,000 31,888 231,888
2026 205,000 25,813 230,813
2027 215,000 19,244 234,244
2028-2029 450,000 15,925 465,925 Subtotal 1,455,000 175,221 1,630,221 Add - premium 48,619 - 48,619 Total 1,503,619$ 175,221$ 1,678,840$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

94 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

2014C Lease Revenue Refunding Bonds

See Note 6A for disclosures. The outstanding balance for Golf Course Enterprise Fund at June 30, 2022 was $428,340.

2016A Lease Revenue Bonds

On October 18, 2016, the Financing Authority issued 2016 Series A Lease Revenue Bonds in the amount of $54,860,000. The bonds bear interest rate of 5% and will mature in 2046. The bonds were issued to (1) finance the acquisition, construction and equipping of the Home2Suites by Hilton Ho tel Project, (2) fund a reserve fund for the bonds, (3) fund interest accruing on the bonds through November 1, 2019, and (4) pay costs of issuance of the bonds. The bonds are payable from the pa yments made by the City to the Authority pledging the Home2Suites property pursuant to the Lease Agreement. The City is required under the Agreement to make payments in each fiscal year to pay the annual principal and interest due on the bonds.

Interest rate on the 2016 Lease Revenue
Refunding Bonds, Series A is at 5.0% Principals are due June 1, 2018 through June 1, 2046. The outstanding balance at June 30, 2022 was $51,685,000.

The annual future debt service requirements are as follows:

For the Year Ending
June 30, Principal Interest Total
2023 1,165,000 $ 2,483,450 $ 3,648,450 $
2024 1,225,000 2,425,200 3,650,200
2025 1,285,000 2,363,950 3,648,950
2026 1,350,000 2,299,700 3,649,700
2027 1,415,000 2,232,200 3,647,200
2028-2032 8,220,000 10,025,250 18,245,250 2033-2037 10,500,000 7,753,500 18,253,500 2038-2042 13,390,000 4,501,650 17,891,650 2043-2046 13,135,000 1,813,400 14,948,400 Subtotal 51,685,000 35,898,300 87,583,300 Add - premium 5,033,005 - 5,033,005 Total 56,718,005$ 35,898,300$ 92,616,305$

2020 Pension Obligation Bonds (“POB”)

See Note 6A for disclosures. The outstanding balance for Transit Fund at June 30, 2022 was $38,142,101.

Motorola Finance Purchase

The City entered into a financing agreement to finance the acquisition of certain communication equipment for the City’s Transit operation in November 2018. The securities for the agreement are the equipment themselves and to be surrendered to the lender in case of payment default or termination of the agreements. Annual payment is due on November 1 and matured on November 1, 2021. The finance agreement was fully paid off during the year ended June 30, 2022.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

95 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

PNC Equipment Finance Purchase

The City entered into a financing agreement to finance the acquisition of certain transportation equipment for the City’s Golf Course. The securities for the lease are the equipment themselves and to be surrendered to the lessor in case of payment default or termination of the agreements. The outstanding balance at June 30, 2022 was $49,866.

The future debt service requirement is as follows:

June 30, Principal Interest Total
2023 49,866$ 2,169$ 52,035$
For the Year Ending

ABM Notes Payable

See note 6A for disclosures.

The outstanding balance of the note for Transit at June 30, 2022 was $636,786.

Southern California Edison (“SCE”)

In July 2013, the City entered into a zero percent On-Bill Financing Agreement with the Southern California Edison Company for the installation of certain energy efficient equipment at the Golf Course premises for a total amount of $327,213 payable over a period of 116 months (9 years and 8 months). At June 30, 2022, the total outstanding loans payable amounted to $44,676.

The annual future debt service requirements are as follows:

June 30, Principal Total
2023 33,969$ 33,969$
2024 10,707 10,707
Total 44,676$ 44,676$
For the Year Ending

Quiet Cannon

The City entered into two loan agreements with Quiet Cannon Montebello, Inc. (“Quiet Cannon”). Quiet Cannon leases a facility on the City’s golf course property. The loans were obtained by Quiet Cannon on behalf of the City from a financial institution payable in monthly installmen ts ranging from $5,969 to $6,658 at prime interest rate (currently 3.25%) until year 2021. The installment payments are deducted by Quiet Cannon from its lease payments to the City. The loan proceeds were used to finance the renovation of the facility and signage.

During the year ended June 30, 2014, the City entered into a Maintenance Loan Agreement with Quiet Cannon for $700,000. Under the agreement, Quiet Cannon borrowed th e amount from a financial institution payable over a period of 5 years at prime lending rate. The loan repayment shall be offset by Quiet Cannon from its rental obligation to the City. At June 30, 2022, the outstanding balance was fully paid off.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

96 Note 6 – Long-Term Liabilities (Continued)

B. Business-Type Activities (Continued)

Acuna Park Notes Payable - Water

The City entered into an agreement with Central Basin M unicipal Water District (the “District’) to facilitate the use of the recycled water at Montebello Golf Course for constructing recycled water facilities for the amount of $615,000. The City may request drawdowns monthly up to the total loan amount after the submission of supporting documentation verifying the costs incurred to the District. The principal is subject to 2% interest and accrued on any drawn amounts. The loan shall be repaid in the form of $250 charge for every acre-foot of recycled water provided by the District to the City, until the balance is paid off. At June 30, 2022, the outstanding balance of the loan was $181,557.

Compensated Absences

All vested vacation and compensatory leave time is recognized as an expense and as a liability in the business- type funds at the time the liability vests. Transit Fund has been used to liquidate the liability. The balance outstanding at June 30, 2022 was $1,274,888.

The summary of changes in the Successor Agency long-term debts for the year ended June 30, 2022 is as follows:

Balance Balance Due Within Due in M ore
July 1, 2021 Additions Deletions June 30, 2022 One Year Than One Year S uccessor Agency Activities
Bonds payable, net:
1999B Montebello Hills Tax Allocation
Parity Bonds 6,232,632 409,429 (2,350,000) 4,292,061 - 4,292,061 2007A Taxable South Montebello Industrial
Redevelopment Project Tax Allocation
Parity Bonds 1,310,000 - (635,000) 675,000 675,000 - 2007B Taxable Montebello Hills Tax
Allocation Parity Refunding Bonds 1,015,000 - (320,000) 695,000 335,000 360,000 2015A Tax-Exempt and 2015B Taxable
Subordinated Tax Allocation Bonds 13,855,000 - (2,910,000) 10,945,000 3,045,000 7,900,000 2002 Montebello Housing Tax Allocation
Parity Bonds 1,306,262 115,830 (490,000) 932,092 - 932,092 Unamortized premiums/(discounts):
2015A Tax-Exempt Tax Allocation Bonds 1,675,330 - (239,333) 1,435,997 239,333 1,196,664 Notes payable:

Ostrom Chevrolet 2,223,408 - (2,223,408) - - - Total Business-Type Activities 27,617,632$ 525,259$ (9,167,741)$ 18,975,150$ 4,294,333$ 14,680,817$

1999 Montebello Hill Tax Allocation Parity Bonds, Series B

In November 1999, the former Agency issued $5,593,888 Montebello Hills Redevelopment Project Tax Allocation Parity Bonds, 1999 Series B. The $1,370,000 current inte rest serial bonds and term bonds were fully matured as of November 1, 1999. The $2,918,888 capital appreciation bonds accrete interest from their dated date, and interest is compounded on March 1, 2000 and semiannually on each September 1 and March 1, thereafter, payable only at maturity at rates range from 6.2666% to 6.423%. The bonds are secured by incremental property taxes allocated to and received by the Successor Agency. The outstanding balance at June 30, 2022 was $4,292,061.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

97 Note 6 – Long-Term Liabilities (Continued)

C. Fiduciary Activities

1999 Montebello Hill Tax Allocation Parity Bonds, Series B (Continued)

The future annual debt service requirement is as follows:

For the Year Ending
June 30 Principal Accreted Interest Interest Total
2023 544,660$ 1,669,614$ 1,805,340$ 4,019,614 2024 505,273 1,572,514 1,844,727 3,922,514 Total 1,049,933$ 3,242,128$ 3,650,067$ 7,942,128$

2007 South Montebello Industrial Redevelopment Project Tax Allocation Parity Bonds, Series A (Taxable)

In October 2007, the former Agency issued $6,065,000 South Montebello Industrial Redevelopment Project Tax Allocation Parity Bonds, 2007 Series A (Taxable). Principal due annually through September 1, 2022 and interest on the bonds are due on March 1 and September 1 of each year at rate of 5.804%. The bonds are secured by incremental property taxes allocated to and receive d by the Successor Agency. The outstanding balance at June 30, 2022 was $675,000.

The future annual debt service requirement is as follows:

June 30, Principal Interest Total
2023 675,000$ 19,589$ 694,589$
For the Year Ending

2007 Montebello Hills Tax Allocation Parity Refunding Bonds, Series B (Taxable)

In October 2007, the former Agency issued $3,660,000 Montebello Hills Redevelopment Project Tax Allocation Parity Refunding Bonds, 2007 Series B (Taxable). Principa l due annually through March 1, 2024 and interest on the Bonds are due on March 1 and September 1 of each year at rate of 5.854%. The bonds are secured by incremental property taxes allocated to and received by the Successor Agency. The outstanding balance at June 30, 2022 was $695,000.

The future annual debt service requirement is as follows:

For the Year Ending
June 30, Principal Interest Total
2023 335,000 $ 20,343 $ 355,343 $ 2024 360,000 10,537 370,537
Total 695,000$ 30,880$ 725,880$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

98 Note 6 – Long-Term Liabilities (Continued)

C. Fiduciary Activities (Continued)

2015 Subordinated Tax Allocation Refunding Bonds, Series A (Tax-exempt) and Series B (Taxable)

In August 2015, the Successor Agency issued Subordinate Tax Allocation Refunding Bonds, Series 2015 A (Tax Exempt) & Series B (Taxable), totaling $25,180,000 to re fund the following old bonds: 1997 Montebello Hills, 1998A Montebello Hills, 1999A Montebello Hills, 2009A Montebello H ills, 1999A South Montebello, 1999B South Montebello, 1998B Montebello Hills, and 2002 Housing ( non-accretion bonds only) with total outstanding principal as of June 30, 2015 of $28,355,000. The Series A bonds, with interest rate ranging from 2% to 5%, are due in annual installments of $1,220,000 to $3,045,0 00 through September 1, 2027. The Series B bonds, with interest rates ranging from 1.25% to 2.50%, are due in annual installments of $335,000 to $375,000 through September 1, 2019.

The outstanding balance at June 30, 2022 was $10,945,000.

The future annual debt service requirement is as follows:

For the Year Ending
June 30, Principal Interest Total
2023 3,045,000$ 444,425$ 3,489,425$
2024 2,195,000 313,425 2,508,425
2025 1,880,000 211,550 2,091,550
2026 1,220,000 134,050 1,354,050
2027 1,270,000 71,800 1,341,800
2028 1,335,000 20,025 1,355,025
Total 10,945,000$ 1,195,275$ 12,140,275$

2002 Montebello Housing Tax Allocation Parity Bonds

In April 2002, the former Agency issued $5,557,642 2002 Housing Tax Allocation Parity Bonds. The $4,910,000 current interest serial bonds and term bonds were fully ma tured as of September 1, 2024. Interest on the current interest bonds is payable on commencing on Septem ber 1, 2002 and semiannually thereafter on March and September 1 each year until maturity at rate of 5.25 %. The $647,642 capital appreciation bonds accrete interest from their dated date, and interest is compounded on Se ptember 1, 2002 and semiannua lly on each September 1 and March 1, thereafter, payable only at maturity, at rates range from 5.60% to 5.75%. The bonds are secured by incremental property taxes allocated to and receive d by the Successor Agency. The outstanding balance at June 30, 2022 was $932,092.

The future annual debt service requirement is as follows:

For the Year Ending
June 30 Principal Accreted Interest Interest Total
2023 157,549$ 324,106$ 337,450$ 819,105 2024 145,906 304,531 344,093 794,530 Total 303,455$ 628,637$ 681,543$ 1,613,635$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

99 Note 6 – Long-Term Liabilities (Continued)

C. Fiduciary Activities (Continued)

2002 Montebello Housing Tax Allocation Parity Bonds (Continued)

The future annual debt service requirement is as follows:

For the Year Ending
June 30 Principal Accreted Interest Interest Total
2023 157,549$ 324,106$ 337,450$ 819,105 2024 145,906 304,531 344,093 794,530 Total 303,455$ 628,637$ 681,543$ 1,613,635$

Redevelopment Agency Note

The former redevelopment agency entered into an agr eement dated February 11, 2009 to purchase the property owned by Ostrom Chevrolet for $12,000,000. The Agency paid $5,000,000 in cash; $2,734,834 was from proceeds of a note owed by Ostrom Chevrolet to the Agency; and $4,265,166 was financed by a note payable to the seller.

The note payable has an interest rate of 5%. For the first 10 years, interest only payments are due each calendar quarter. Following the 10th anniversary of the note date, th e Agency is to make four quarterly payments in an amount sufficient to amortize and repay all accrued interest and principal by the date the last payment is due on the first day of the full calendar quarter following the 20th anniversary date of the note. The Agency made early principal payments in the current year as well as the prior fiscal years with total annual payment of $337,780 inclusive of interest. On November 23, 2021, this property was sold and the outstanding note was fully paid off.

D. Advances from City of Montebello

At June 30, 2022, the Successor Agency has a net liability to the City of $4,967,239, which is reported in the Statement of Fiduciary Net Position as due to other governments. This amount was due to the Housing Successor Special Revenue Fund pertaining to advances made by the former Low-and-Moderate Income Housing Fund to the former redevelopment agency. These advances were for payment of the Supplemental Educational Revenue Augmentation Fund (“SERAF”) a nd to finance the project expenses of one of the project areas of the former redevelopment agency.

Note 7 – Self Insurance

The City is partially self-insured for general liability and workers' compensation claims. The City pays up to $1 million per occurrence for general liability claims, and has excess insurance up to $10 million per occurrence. For workers' compensation, the City provides self-insurance up to a $1, 000,000 retention level and has acquired excess insurance coverage of $5 million for each claim. The City also purchases commercial insurance for other risks of loss, including property loss and vehicle physical damage. There have been no significant changes in insurance coverage as compared to last year. At June 30, 2022, the present value of the estim ated liability for claims payable, discounted at a 2% rate, is $27,444,611, based on an actuarial study. The liability includes an estimate for incurred, but not reported (IBNR), losses and is based on past experience, modified for current trends and information.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

100
Note 7 – Self Insurance (Continued)

Changes in the claims payable amount for the three years ended June 30, 2022 are as follows:

Balance Balance
Fiscal Year Beginning of Year Addition Deletion End of Year June 30, 2020 21,064,070$ 5,039,758$ (3,982,828)$ 22,121,000$ June 30, 2021 22,121,000 5,266,139 (3,785,909) 23,601,230 June 30, 2022 23,601,230 7,018,256 (3,174,875) 27,444,611

Note 8 – Hotel Management Agreements

Montebello Hilton Hotel (“Hilton Garden Inn”)

Pursuant to a Hotel Management Agre ement dated November 29, 2001, the M ontebello Hilton Hotel (Hilton Garden Inn) pays Hotel Adventures LLC (“HALLC”) an annual management fee which includes an operational amount and a projected franchise fee assessed by Hilton Hotels. The actual franchise fee amount is paid directly to Hilton Hotels from the City’s Hilton Garden Inn (Enterprise) Fund. The obligation of the City to pay the management fee is subordinated to the payment of operating expenses and debt service on the Bonds issued to finance Hotel construction.

Unpaid fees, consisting of the management fee and any franchise fee differential between projected franchise fees and actual franchise fees paid to Hilton Hotels, accrue interest at a prime lending rate established by Citibank, N.A.

On November 29, 2018, the City extended the Hotel Mana gement Agreement with HALLC for an additional 15 years until December 17, 2032. Under this new agreement, HALLC shall receive an annual management fee of $597,000. The franchise fee assessed by Hilton Hotels is included in the Hotel operating expenses. Unpaid management fees shall accrue interest at simple annual interest rate equal to that earned in the Local Agency Investment Fund (LAIF).

During the year ended June 30, 2022, the Hotel reported expense for management fees and interest on management fees of $1,039,573. Accrued unpaid expenses for management fees were $357,805 as of June 30, 2022.

Home2Suites

Pursuant to a Hotel Management Agre ement dated May 26, 2016, the Montebe llo Home2Suites Hotel (“H2S”) pays Hotel2Suites LLC an annual management fee of $700,000, as adjusted upward or downward based upon changes in the Annual CPI Index. The obligation of the City to pay the management fee is subordinated to the payment of operating expenses and debt service on the Bonds issued to finance H2S construction. The H2S accrued and unpaid management fees were $422,909 as of June 30, 2022.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

101
Note 9 – Defined Benefit Pension Plan

A. General Information About the Pension Plan

Plan Description

All qualified permanent and probationary employees are eligible to participate in the City’s Safety Plan (police and fire) and Miscellaneous Plan (all others), agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (“CalPERS”), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provi sions, assumptions and membership info rmation that can be found on the CalPERS website.

Benefits Provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic D eath Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustme nts for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:

Prior to On or after
Hire date 1-Jan-13 1-Jan-13
Benefit formula 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 55 52 - 67
Benefit per year of service, as a percentage of salary 2.0% to 2.7% 1.0% to 2.5% Required employee contribution rates 8.000% 6.250%
Required employer contribution rates 11.129% 11.129%
Prior to On or after
Hire date 1-Jan-13 1-Jan-13
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 - 55 50 - 57
Benefit per year of service, as a percentage of salary 2.0% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 12.750%
Required employer contribution rates 21.164% 21.164%
Miscellaneous
Safety

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

102
Note 9 – Defined Benefit Pension Plan (Continued)

A. General Information About the Pension Plan (Continued)

Employees Covered

At June 30, 2020, the valuation date, the following employees were covered by the benefit terms of the Plan:

Miscellaneous Safety
Active employees 333 112
Transferred and terminated employees 428 125
Retired employees and beneficiaries 463 282
Total 1224 519

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basi s by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contri butions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contri bute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the employer contributions recognized as a reduction to the net pension liability for the Miscellaneous and Safety Plan were $2,061,508 and $2,913,777, respectively.

B. Pension Liability

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

The June 30, 2020 valuation was rolled forward to determine the June 30, 2021 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost M ethod
Actuarial Assumptions:

Discount Rate
Inflation
Payroll Growth
Projected Salary Increase
Investment Rate of Return
Morta l i ty Ra te Ta bl e
1 2.75%
Varies by Entry Age and Service

7.00% Net of pension plan investment and adminitrative
expenses; including inflation
Derived using CalPERS’ Membership Data for all Funds.

Entry Age Normal in accordance with the requirement of
GASB

7.15%

2.50%

1The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period fro m 1997 to 2015. Pre-retirement and Postretirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this tables please refer to the CalPERS experience study and Review of Actuarial Assumption report from December 2017 that can be found on the CalPERS website.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

103
Note 9 – Defined Benefit Pension Plan (Continued)

B. Pension Liability(Continued)

Changes of Assumptions

In 2021, there were no changes in assumptions.

Discount Rate

The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions fro m 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.

Long-Term Expected Rate of Return

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

In determining the long-term expected rate of return , CalPERS took into account bot h short-term and long-term market return expectations as well as the expected pensi on fund cash flows. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short- term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated a bove and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Current Real Return Real Return
Asset Class1 Allocation Years 1-10 2 Years 11+3
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Assets 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
100.00%
2 An expected inflation of 2.00% used for this period.
3 An expected inflation of 2.92% used for this period.
1 In the CalPERS's ACFR, Fixed Income is included in the Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

104
Note 9 – Defined Benefit Pension Plan (Continued)

C. Changes in the Net Pension Liability

The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous agent multiple-employer plan:

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability/(Asset)
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 207,674,011$ 209,346,248$ (1,672,237)$ Changes recognized for the measurement period:

Service cost 3,191,506 - 3,191,506 Interest on the total pension liability 14,665,797 - 14,665,797 Changes of benefit terms - - - Difference between expected and actual experience 1,575,308 - 1,575,308 Changes of assumptions - - - Plan to plan resource movement - - - Contributions from the employer - 2,061,508 (2,061,508) Contributions from employees - 1,399,212 (1,399,212) Net investment income, net of administrative expense - 46,168,935 (46,168,935) Benefit payments, including refunds of employee
contributions (11,458,063) (11,458,063) - Administrative expense - (209,124) 209,124 Other miscellaneous income/ (expense) - - - Net Changes during July 1, 2020 to June 30, 2021 7,974,548$ 37,962,468$ (29,987,920)$ Balance at June 30, 2021 (Measurement Date) 215,648,559$ 247,308,716$ (31,660,157)$ Miscellaneous Plan
Increase (Decrease)

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

105
Note 9 – Defined Benefit Pension Plan (Continued)

C. Changes in the Net Pension Liability (Continued)

The following table shows the changes in net pension liability recognized over the measurement period for the Safety agent multiple-employer plan:

Total Pension Plan Fiduciary Net Net Pension
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 (Valuation Date) 270,879,258 $ 271,648,136 $ (768,878) $ Changes recognized for the measurement period:

Service cost 3,827,398 - 3,827,398 Interest on the total pension liability 19,228,565 - 19,228,565 Changes of benefit terms - - - Difference between expected and actual experience 3,576,407 - 3,576,407 Changes of assumptions - - - Plan to plan resource movement - - - Contributions from the employer - 2,913,777 (2,913,777) Contributions from employees - 1,383,844 (1,383,844) Net investment income, net of administrative expense - 59,892,826 (59,892,826) Benefit payments, including refunds of employee
contributions (14,876,758) (14,876,758) - Administrative expense - (271,360) 271,360 Other miscellaneous income/ (expense) - - - Net Changes during July 1, 2020 to June 30, 2021 11,755,612$ 49,042,329$ (37,286,717)$ Balance at June 30, 2021 (Measurement Date) 282,634,870$ 320,690,465$ (38,055,595)$ Increase (Decrease)
Safety Plan

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the Pl an as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pens ion liability would be if it were calculated using a rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate Current Discount Discount Rate
- 1% (6.15%) Rate (7.15%) + 1% (8.15%)
Miscellaneous Plan (4,178,565)$ (31,660,157) $ (54,444,142)$ Safety Plan (1,115,292)$ (38,055,595)$ (68,437,309)$ Plan's Net Pension L iability

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

106
Note 9 – Defined Benefit Pension Plan (Continued)

C. Changes in the Net Pension Liability (Continued)

Pension Plan Fiduciary Net Position

Detailed information about the plans' fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions

For the year measurement period ending June 30, 2021, the City recognized pension credit of ($3,254,790) and ($4,133,145) for the miscellaneous and safety plans, respectively.

As of June 30, 2022, the City has de ferred outflows and deferred inflows of resources related to pensions for the Miscellaneous Plan as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 1,942,722$ -$ Difference between expected and actual experience 991,861 (393,863) Net difference between projected and actual earning on
pension plan investments - (22,231,481) Total 2,934,583$ (22,625,344)$
Miscellaneous Plan

The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Miscellaneous Plan, for the 2020-21 measurement period is 2.7 years, which was obtained by dividing the total service years of 3,277 (the sum of remaining service lifetimes of the active employees) by 1.224 (the total number of participants: active, inactive, and retired), respectively.

The $1,942,722 reported as deferred outflows represents contributions made after the measurement date of the net pension liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

107
Note 9 – Defined Benefit Pension Plan (Continued)

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions (Continued)

Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows /
M easurement (Inflows)
Period of Resources
Ending June 30 Miscellaneous Plan
2022 (5,305,170)$
2023 (4,731,648)
2024 (5,296,491)
2025 (6,300,174)
2026 -
Thereafter -
(21,633,483)$

As of June 30, 2022, the City has de ferred outflows and deferred inflows of resources related to pensions for the Safety Plan as follows:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 2,856,615 $ - $ Changes of assumptions - - Difference between expected and actual experience 2,086,237 (74,532) Net difference between projected and actual earning on
pension plan investments - (28,613,231) Total 4,942,852$ (28,687,763) $
Safety P lan

The amounts above are net of outflows and inflows recognized in the 2020-2021 measurement period expense.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the Safety Plan for the 2020- 21 measurement period is 2.4 years, which was obtained by dividing the total service years of 1,259 (the sum of remaining service lifetimes of the active employees) by 519 (the total number of participants: active, inactive, and retired), respectively.

The $2,856,615 reported as de ferred outflows of resources represents c ontributions made after the measurement date of the net pension liability but before the end of the City's repor ting period and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

108
Note 9 – Defined Benefit Pension Plan (Continued)

D. Pension Expenses and Deferred Outflows and Inflows of Resources Related to Pensions (Continued)

Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Deferred Outflows /
M easurement (Inflows)
Period of Resources
Ending June 30 Safety Plan
2022 (5,615,957)$
2023 (6,011,542)
2024 (6,801,431)
2025 (8,172,596)
2026 -
Thereafter -
(26,601,526)$

Note 10 – Other Postemployment Benefits (“OPEB”)

A. General Information About the Other Postemployment Benefit Plan

Plan Description

The City provides postemployment healthcare benefits to eligible employees at retirement through a single- employer defined benefit other postemployment benefits (“OPEB”) plan administered by the City. Benefit provisions are established through agreements and memorandums of agreement between the City, its management employees, and unions representing the City's employees.

Benefits Provided

The City provides the minimum required employer contri butions under the CalPERS Health Plan for eligible retirees and surviving spouses in receipt of a pension benefit from PERS. An employee is eligible for this employer contribution provided they are vested in their PERS pension benefit and commence payment for their pension benefit when retiring from the City. The surv iving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon the death of the retiree.

Additional Benefits for Miscellaneous Employees

The current retiree health benefit is a monthly allowance that is payable to the eligible retiree and will be reduced by any amounts paid by the City towards health insurance for the retiree. The monthly allowance is available only to the retired employee and does not continue to a surviving spouse. The retiree is not required to continue medical insurance through the City to receive the monthly allowance. The monthly allowance is currently $25 for each year of service with the City up to 25 years ($625 maximum per month).

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

109
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

A. General Information About the Other Postemployment Benefit Plan (Continued)

Additional Benefits for Miscellaneous Employees (Continued)

The monthly allowance is payable up to Medicare eligibility age (currently age 65).

Eligibility from the monthly allowance requires retirement from the City on or after age 50 with at least 15 years of active City service at retirement. Disability retirement requires 10 years of active City service and has no age requirement. Montebello Mid- Mana gement Association (“MMMA”) and M ontebello Supervisors Association (“MSA”) employees are not eligible for this allowance unless they made a one-time election for this benefit in lieu of a City contribution to a 401 (a) plan.

Additional Benefits Safety (Fire and Police) Employees

The current retiree health benefit is a monthly allowance that is payable to the eligible retiree and will be reduced by any amounts paid by the City towards health insurance for the retiree. The monthly allowance is available only to the retired employee and does not continue to a surviving spouse. The retiree is not required to continue medical insurance through the City to receive the monthly allowance. The monthly allowance is currently $25 for each year of service with the City up to 25 years ($625 maximum pe r month). The monthly allowance is payable during the retiree’s lifetime for members of Montebello Police Officers Association (“MPOA”), Montebello Police Management Association (“MPMA”) and Montebello Fire Fighters Association (“MFFA”) and to Medicare eligibility age for all unrepresented Safety employees.

Eligibility from the monthly allowance requires retirement from the City on or after age 50 with at least 15 years of active City service at retirement. Disability retiremen t requires only 10 years of active City service and has no age requirement. Prior to August 2008, MFA employees recei ved a contribution to a 401 (a) (h) plan in lieu of retiree health benefits.

The City also pays 1% of payroll into a Health Reimbursement Account for MPOA, MPMA and, commencing in 2008 for MFA employees.

Employees Covered

At June 30, 2020, the valuation date, the following numbers of participants were covered by the benefit terms:

Inactive plan members or beneficiaries
currently receiving benefits 181
Active plan members 343
Total 524

Contributions

The plan is not funded. The City finances these benefits on a pay-as-you-go basis.

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

110
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

B. Net OPEB Liability

Actuarial Methods and Assumptions Used to Determine Total OPEB Liability

The City's total OPEB liability was measured as of June 30, 2021 for the measurement period July 1, 2020 through June 30, 2021. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial assumptions:

Actuarial Cost M ethod
Actuarial Assumptions:

Inflation
Salary Increases
Discount Rate
Moratlity rates
Healthcare cost trend rate
Entry Age, Level Percent of Pay

2.66% as of June 30, 2020 and 1.92% as of June 30, 2021

2.75%
Based on the 2017 experience study for CalPERS pension
Scale MP-2020

6.25% for 2021 decreasing 0.25% per year to and ultimate rate of 4.50% for 2028 and later years

Discount Rate

The discount rate used to measure the total OPEB li ability are based on the S&P Municipal Bond 20 Year High Grade Index. This index indicates discount rates of 2.66% as of June 30, 2020 and 1.92% as of June 30, 2021.

C. Changes in the Net OPEB Liability

The changes in the total OPEB liability for the plan are as follows:

Total OPEB Plan Fiduciary Net Net OPEB
L iability Position L iability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2020 30,359,256 $ - $ 30,359,256$ Changes recognized for the measurement period:

Service cost 1,192,947 - 1,192,947 Interest on the total OPEB liability 820,237 - 820,237 Changes of benefit terms - - - Difference between expected and actual experience - - - Changes of assumptions 2,766,372 - 2,766,372 Contributions from the employer - 1,441,914 (1,441,914) Contributions from employees - - - Net investment income, net of administrative expense - - - Benefit payments, including refunds of employee
contributions (1,441,914) (1,441,914) - Administrative expense - - - Net Changes during July 1, 2020 to June 30, 2021 3,337,642$ - $ 3,337,642$ Balance at June 30, 2021 (Measurement Date) 33,696,898 $ - $ 33,696,898$ Increase (Decrease)

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

111
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

C. Changes in the Net OPEB Liability (Continued)

Sensitivity of the Net OPEB liability to Changes in the Discount Rate

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2021:

Discount Rate Current Discount Discount Rate
- 1% (0.92%) Rate (1.92%) + 1% (2.92%)
38,131,433$ 33,696,898 $ 30,046,135 $ Plan's Net OPEB Liability/(Asset)

Sensitivity of the Net OPEB liability to Changes in the Healthcare Cost Trend Rates

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would it were calculated using healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates:

1% Decrease Current Rate 1% Increase
(5.25% decreasing to

3.50%)
(6.25% decreasing to

4.50%)
(7.25% decreasing to

5.50%)
31,068,112$ 33,696,898 $ 36,643,907 $ Plan's Net OPE B L iability/(Asset)

D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB

For the year ended June 30, 2022, the City recognized OPEB expense of $2,054,726. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources re lated to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Contributions made after the measurement date 1,514,821$ -$ Changes of assumptions 4,497,518 (438,515) Difference between expected and actual experience - (2,226,980) Total 6,012,339$ (2,665,495)$
OPE B Plan

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

112
Note 10 – Other Postemployment Benefits (“OPEB”) (Continued)

D. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB (Continued)

The $1,514,821 reported as deferred outflows of resources represents cont ributions made after the measurement date of the OPEB liability but before the end of the C ity's reporting period and will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB credit as follows:

Deferred Outflow s
M easurement Period /(Inflows)
Ending June 30, of Resources
2022 211,162 $
2023 211,161
2024 211,161
2025 211,161
2026 320,790
Thereafter 666,588
1,832,023$

Note 11 – Net Investment in Capital Assets

The net investment in capital assets for governmental activ ities, business-type activities, and enterprise funds is calculated as follows:

Governmental Business-Type
Activities Activities
Total capital assets, net 104,617,396 $ 106,336,638 $ Unspent capital debt proceeds 15,161,364 46,299 Deferred loss on refunding debt 134,111 40,963 Capital related debt (40,184,923) (70,945,713) Deferred gain on refunding debt - (529,498) Net investment in capital assets 79,727,948$ 34,948,689 $

Transit System Golf Montebello W ater
Fund Course Hilton Home2Suites Fund
Total capital assets, net 41,966,132$ 7,105,025$ 11,862,931$ 44,482,237$ 920,313$ Unspent capital debt proceed 46,299 - - - - Deferred loss on refunding debt - 40,963 - - - Capital related debt (636,786) (2,026,052) (11,383,313) (56,718,005) (181,557) Deferred gain on refunding debt - - (529,498) - - Net investment in capital assets 41,375,645$ 5,119,936$ (49,880)$ (12,235,768)$ 738,756$ Ente rpri se Fund

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

113
Note 12 – Fund Balance Classifications

Fund balances for the governmental funds at June 30, 2022 consisted of the following:

Transportation
and Street Public Nonmajor
Retirement Improvement Financing Governmental
General Fund Fund Funds Authority Fund Total
Nonspendable:

Advances to other funds 3,159,680$ -$ -$ -$ -$ 3,159,680$ Prepaid items 195,722 - 28,970 - 121,437 346,129 Property held for resale 682,538 - - - - 682,538 Total nonspendable 4,037,940 - 28,970 - 121,437 4,188,347 Restricted:

Retirement - 21,046,898 - - - 21,046,898 Community development - - - - 8,849,308 8,849,308 Public safety - - - - 965,996 965,996 Capital projects 374,594 - 14,786,770 - 214,580 15,375,944 Transportation - - 13,854,886 - - 13,854,886 Debt service - - - 371,706 - 371,706 Total restricted 374,594 21,046,898 28,641,656 371,706 10,029,884 60,464,738 Committed:

Encumbrances 459,491 - - - - 459,491 Total committed 459,491 - - - - 459,491 Unassigned:

Fund ba
lance (deficit) 9,844,229 - - - (262,960) 9,581,269 Total unassigned 9,844,229 - - - (262,960) 9,581,269 Total fund balances 14,716,254$ 21,046,898 $ 28,670,626 $ 371,706 $ 9,888,361$ 74,693,845$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

114
Note 13 – Stewardship, Compliance and Accountability

The following expenditures for the year ended June 30, 2022, exceeded appropriations in the following funds and functions:

Funds Appropriation Expenditures
E xpenditures ov er
Appropriation
Major Governmental Funds:

General Fund
General government 7,203,177$ 7,508,181$ (305,004)$ Parks, recreation, and culture 4,489,521 4,711,686 (222,165) Debt service:

Principal retirement 1,012,235 1,254,815 (242,580) Interest and fiscal charges 170,500 397,418 (226,918) Retirement Special Revenue Funds
General government 126,400 191,001 (64,601) Transportation and Street Improvement
Special Revenue Funds
Public works 354,200 780,492 (426,292) Nonmajor Governmental Funds:

Supplemental Law Enforcement Special Revenue Fund
Capital Outlay - 1,794 (1,794) Grants Special Revenue Fund
Housing and community development 105,000 481,757 (376,757) George Miller Estate Donations Special Revenue Fund
Public safety 65,750 73,224 (7,474) M easure W Special Revenue Fund
Public works 298,447 869,375 (570,928) Housing Successor Agency Special Revenue Fund
Housing and community development 2,500 25,083 (22,583)

The following funds had deficit fund balances or net position at June 30, 2022. Management expects to eliminate the deficits with subsequent revenue in the funds or transfers from the General Fund.

Funds Amount
Enterprise Funds:

Montebello Hilton (83,562)$
Home2Suites (1,724,814)
Internal Service Fund:

Self-insurance (20,326,439)
Nonmajor Governmental Funds:

Supplemental Law Enforcement Special Revenue Fund (170,676) CDBG Special Revenue Fund (92,284)

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

115
Note 14 – Construction Commitments

The City had outstanding construction commitments in th e amount of $3,675,769 for governmental activities and $13,958,277 for business-type activities at June 30, 2022 as follows:

Gove rnme ntal Acti vi ti e s
General Fund 459,491$
Transportation and Street Improvement
Special Revenue Funds 3,012,401
Nonmajor governmental funds 203,877
Total Governmental Activities 3,675,769$
Business-type Activities
Golf Enterprise Fund 13,958,277$

Note 15 – Contingencies

The City is involved in several pending lawsuits of a nature common to many similar juri sdictions. City management estimates that potential claims against the City, not covered by insurance, will not have a material adverse effect on the financial statements of the City.

Note 16 – Prior Period Adjustments

The beginning net positions and fund balances were restated as following:

Governmental-
Wi de
Governmental
Activities
Beginning, as previously reported (20,800,935)$
Prior year revenue correction (102,725)
Notes payable 889,106
Beginning, as restated (20,014,554)$

City of Montebello
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2022

116
Note 16 – Prior Period Adjustments (Continued)

CDBG HOM E Total Successor Agency
Special Revenue Special Revenue Governmental Private-Purpose Custodial Fund Fund Fund Trust Fund Fund
Beginning, as previously reported
as previously reported 17,256$ (125,342)$ (108,086)$ (366,104)$ -$ Unavailable revenue 543,530 145,000 688,530 - - Prior year revenue correction (202,140) 99,415 (102,725) - - Land held for resale - - - 10,400,000 - Capital assets - - - (246,853) - Deposits - - - - 1,280,426 Beginning, as restated 358,646$ 119,073$ 477,719$ 9,787,043$ 1,280,426$ Fiduciary FundsGovernmental Funds

Governmental activities beginning net position was restated to correct the reporting of unavailable revenue for loans receivable in CDBG Special Revenue Fund and HOME Special Revenue Fund and to correct notes payable to HUD in HOME Special Revenue Fund which repayment was completed in fiscal year 2020.

The beginning net position of Successor Agency Private-Purpose Trust Fund was restated to correct the land held for resale not reported previously and to catch up capital assets depreciation.

The beginning net position of custodial fund was restated to implement GASB 84, Fiduciary Activities.

Note 17 – Subsequent Events

Lease Revenue Bond, Series 2022A Issuance

On December 1, 2022, the City issued Taxable Lease Revenue Bonds, Series 2022A in the amount of $15,700,000 to fund for design, architectural, engineering, construction, and other related costs of the Golf Course Improvement Project. The bonds bear an interest rate of 5% and the principal matures in amounts ranging $230,000 to $975,000 through May 2053.

Lease Revenue Bond, Series 2022B Issuance

On December 1, 2022, the City issued Taxable Lease Revenue Bonds, Series 2022B in the amount of $55,965,000 to finance the costs to design and construct a driving range and entertainment venue to be operated by Topgolf USA MB, LLC. The bonds bear an interest rates of 5.15% to 6.50% and the principal matures in amounts ranging $805,000 to $4,785,000 through May 2043.

Sale of City’s Water System

On December 1, 2022, the California P ublic Utilities Commission authorized the sal e of the City’s water system and related assets to the San Gabriel Valley Water Company (“SGVWC”). The City received the sale proceeds of $16.411 million on February 13, 2023. The City retains certain water rights and will lease such rights to SGVWC.

REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
117

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118

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Taxes 37,831,100 $ 37,831,100 $ 42,505,700 $ 4,674,600 $ Intergovernmental 7,500 7,500 6,311,326 6,303,826 Licenses and permits 6,101,500 6,101,500 7,806,258 1,704,758 Fines and forfeitures 2,250,000 2,250,000 2,512,256 262,256 Use of money and property 225,000 225,000 (869,471) (1,094,471) Charges for services 7,807,350 7,807,350 8,077,509 270,159 Other revenue 557,500 557,500 560,220 2,720 Total revenues 54,779,950 54,779,950 66,903,798 12,123,848 EXPENDITURES:

Current:

General government 6,089,500 7,203,177 7,508,181 (305,004) Public safety 33,577,820 34,489,873 33,255,910 1,233,963 Public works 10,338,000 12,765,829 11,882,266 883,563 Parks, recreation, and culture 4,424,550 4,489,521 4,711,686 (222,165) Housing and community development 2,489,820 3,088,582 2,370,064 718,518 Capital outlay 481,500 3,025,000 2,073,997 951,003 Debt service:

Principal 997,800 1,012,235 1,254,815 (242,580) Interest 170,500 170,500 397,418 (226,918) Total expenditures 58,569,490 66,244,717 63,454,337 2,790,380

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (3,789,540) (11,464,767) 3,449,461 14,914,228 OTHER FINANCING SOURCES (USES):

Transfers in 4,100,000 4,100,000 3,637,348 (462,652) Proceeds from sale of asset - - 44,300 44,300 Total other financing sources (uses) 4,100,000 4,100,000 3,681,648 (418,352) NET CHANGE IN FUND BALANCE 310,460$ (7,364,767) $ 7,131,109 14,495,876 $ FUND BALANCE:

Beginning of year 7,585,145
End of Year 14,716,254$
Budgetary Comparison Schedule
General Fund
119

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)

REVENUES
Taxes 15,046,000 $ 15,046,000 $ 14,569,128 $ (476,872) $ Use of money and property 125,000 125,000 98,079 (26,921) Total revenues 15,171,000 15,171,000 14,667,207 (503,793)

EXPENDITURES
Current:

General government 126,400 126,400 191,001 (64,601)

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 15,044,600 15,044,600 14,476,206 (568,394)

OTHER FINANCING USES
Transfers out (11,521,700) (11,521,700) (11,040,588) 481,112 Total other financing (uses) (11,521,700) (11,521,700) (11,040,588) 481,112 NET CHANGE IN FUND BALANCE 3,522,900$ 3,522,900 $ 3,435,618 (87,282) $

FUND BALANCE
Beginning of year 17,611,280
End of year 21,046,898$
City of Montebello
Retirement Special Revenue Fund
For the Year Ended June 30, 2022
Budgetary Comparison Schedule (Continued)
120

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)

REVENUES
Intergovernmental 6,790,200 $ 6,790,200 $ 7,799,136 $ 1,008,936 $ Use of money and property 48,000 48,000 84,531 36,531 Total revenues 6,838,200 6,838,200 7,883,667 1,045,467

EXPENDITURES
Current:

Public works 354,200 354,200 780,492 (426,292) Capital outlay 8,933,074 8,933,074 5,396,999 3,536,075 Total expenditures 9,287,274 9,287,274 6,177,491 3,109,783

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (2,449,074) (2,449,074) 1,706,176 4,155,250

OTHER FINANCING USES
Transfers out (2,135,900) (2,135,900) (2,135,916) (16) Total other financing (uses) (2,135,900) (2,135,900) (2,135,916) (16) NET CHANGE IN FUND BALANCE (4,584,974)$ (4,584,974) $ (429,740) 4,155,234 $

FUND BALANCE
Beginning of year 29,100,366
End of year 28,670,626$
City of Montebello
Transportation and Street Improvement Special Revenue Fund For the Year Ended June 30, 2022
Budgetary Comparison Schedule (Continued)
121

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122

a. The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and estimated revenues for all governmental fund types. b. The City Manager is authorized to transfer certain appropriations between activities within any department in accordance with the budget resolution.
c. The budget is formally integrated into the accounting system. d. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The modified accrual basis of accounting is employed in the preparation of the budget.
e. At fiscal year-end, operating budget appropriations lapse. Incomplete capital improvements are rolled over to the new fiscal year. Projects that are not started during the budget year are re-evaluated in the following year.

The budgetary comparison schedule is not presented for the Inmate Welfare Special Revenue Fund due to no approved budget for the year ended June 30, 2022.

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

City of Montebello
Required Supplementary Information (Unaudited)
Notes to the Budgetary Comparison Schedule
For the Year Ended June 30, 2022
Budget and Budgetary Accounting
123

Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 2,802,157 $ 2,918,611 $ 2,703,362 $ 2,932,068 $ 2,914,031 $ Interest 11,639,094 12,022,505 12,395,700 12,673,319 13,109,478 Differences between expected and actual experience - (2,072,412) (2,550,443) (2,393,873) 531,297 Changes of assumptions - (2,949,227) - 10,512,651 (1,078,751) Benefit payments, including refunds
of employee contributions (7,364,542) (7,653,087) (7,156,315) (9,080,226) (8,817,355) Net change in total pension liability 7,076,709 2,266,390 5,392,304 14,643,939 6,658,700 Total pension liability - beginning 157,469,110 164,545,819 166,812,209 172,204,513 186,848,452 Total pension liability - ending (a) 164,545,819$ 166,812,209 $ 172,204,513 $ 186,848,452 $ 193,507,152 $ Pension fiduciary net position
Contributions - employer 3,168,029 $ 3,123,518 $ 3,474,912 $ 3,893,457 $ 4,404,730 $ Contributions - employee 1,468,002 1,260,428 1,208,725 1,186,191 1,198,860 Net investment income2 19,352,467 2,844,663 665,613 13,752,535 11,334,145 Benefit payments, including refunds
of employee contributions (7,364,542) (7,653,087) (7,156,315) (9,080,226) (8,817,355) Plan to plan resources movement - - - (1,197) (334) Administrative expense - (144,043) (78,007) (186,195) (211,420) Other miscellaneous income/ (expense) - - - - (401,491) Net change in plan fiduciary net position 16,623,956 (568,521) (1,885,072) 9,564,565 7,507,135 Plan fiduciary net position - beginning 111,940,967 128,564,923 127,996,402 126,111,330 135,675,895 Plan fiduciary net position - ending (b) 128,564,923$ 127,996,402 $ 126,111,330 $ 135,675,895 $ 143,183,030 $ Plan net pension liability - ending (a) - (b) 35,980,896$ 38,815,807 $ 46,093,183 $ 51,172,557 $ 50,324,122 $ Plan fiduciary net position as a percentage 78.13% 76.73% 73.23% 72.61% 73.99% of the total pension liability
Covered payroll 15,828,716$ 16,304,182 $ 16,324,646 $ 16,116,462 $ 15,903,678 $ Plan net pension liability as a percentage of
covered payroll 227.31% 238.07% 282.35% 317.52% 316.43% 1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

Last Ten Fiscal Years
Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Benefit Changes: There were no benefit changes.
124

Measurement period 2018-19 2019-20 2020-21
Total pension liability
Service cost 2,908,539$ 2,826,979 $ 3,191,506 $ Interest 13,768,761 14,108,298 14,665,797
Differences between expected and actual experience 2,360,490 (1,969,315) 1,575,308 Changes of assumptions - - - Benefit payments, including refunds
of employee contributions (9,503,625) (10,333,268) (11,458,063) Net change in total pension liability 9,534,165 4,632,694 7,974,548 Total pension liability - beginning 193,507,152 203,041,317 207,674,011 Total pension liability - ending (a) 203,041,317$ 207,674,011 $ 215,648,559 $ Pension fiduciary net position
Contributions - employer 5,051,169 $ 61,879,526 $ 2,061,508 $ Contributions - employee 1,198,617 1,324,939 1,399,212 Net investment income2 9,332,756 7,525,227 46,168,935 Benefit payments, including refunds
of employee contributions (9,503,625) (10,333,268) (11,458,063) Plan to plan resources movement - - Administrative expense (102,178) (210,279) (209,124) Other miscellaneous income/ (expense) 334 - Net change in plan fiduciary net position 5,977,073 60,186,145 37,962,468 Plan fiduciary net position - beginning 143,183,030 149,160,103 209,346,248 Plan fiduciary net position - ending (b) 149,160,103$ 209,346,248 $ 247,308,716 $ Plan net pension liability - ending (a) - (b) 53,881,214$ (1,672,237) $ (31,660,157) $ Plan fiduciary net position as a percentage 73.46% 100.81% 114.68% of the total pension liability
Covered payroll 16,045,340$ 15,953,606 $ 18,031,110 $ Plan net pension liability as a percentage of
covered payroll 335.81% -10.48% -175.59%
1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Benefit Changes: There were no benefit changes.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2022
Last Ten Fiscal Years
125

2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 3,123,518 $ 3,474,912 $ 3,893,457 $ 4,395,719 $ 4,404,730 $ Contributions in relation to the
actuarially determined contribution (3,123,518) (3,474,912) (3,893,457) (4,395,719) (4,404,730) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll2 16,304,182$ 16,324,646 $ 16,116,462 $ 16,116,462 $ 15,903,678 $ Contributions as a percentage of covered payroll 19.16% 21.29% 24.16% 27.27% 27.70% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

2.75%

2.50%
Include one year's payroll growth using 2.75 percent
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
For the Year Ended June 30, 2022
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Last Ten Fiscal Years
126

2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution 5,051,169 $ 5,980,507 $ 2,061,508 $ 1,942,722 $ Contributions in relation to the
actuarially determined contribution (5,051,169) (61,879,526) (2,061,508) (1,942,722) Contribution deficiency (excess) - $ (55,899,019)$ - $ - $ Covered payroll2 16,045,340$ 15,953,606 $ 18,031,110 $ 18,526,966 $ Contributions as a percentage of covered payroll 31.48% 37.49% 11.43% 10.49% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Include one year's payroll growth using 2.75 percent

2.50%

2.75%
127

Measurement period 2013-141 2014-15 2015-16 2016-17 2017-18 Total pension liability
Service cost 3,199,355 $ 3,228,635 $ 3,178,292 $ 3,513,114 $ 3,422,176 $ Interest 15,059,257 15,555,154 16,109,903 16,587,154 17,067,923 Differences between expected and actual experience - (1,653,000) (831,534) (484,213) (273,569) Changes of assumptions - (3,773,844) - 13,789,932 (910,340) Benefit payments, including refunds
of employee contributions (10,199,284) (10,403,035) (10,947,880) (11,772,390) (12,521,308) Net change in total pension liability 8,059,328 2,953,910 7,508,781 21,633,597 6,784,882 Total pension liability - beginning 204,290,062 212,349,390 215,303,300 222,812,081 244,445,678 Total pension liability - ending (a) 212,349,390$ 215,303,300 $ 222,812,081 $ 244,445,678 $ 251,230,560 $ Pension fiduciary net position
Contributions - employer 6,437,996 $ 4,710,747 $ 5,153,218 $ 5,358,752 $ 6,104,047 $ Contributions - employee 1,627,017 1,207,244 1,193,160 949,049 1,070,001 Net investment income2 22,955,341 3,345,009 737,269 16,289,173 13,313,614 Benefit payments, including refunds
of employee contributions (10,199,284) (10,403,035) (10,947,880) (11,772,390) (12,521,308) Plan to plan resources movement - - - - (390) Administrative expense - (172,263) (93,329) (220,253) (248,987) Other miscellaneous income/ (expense) - - - - (472,831) Net change in plan fiduciary net position 20,821,070 (1,312,298) (3,957,562) 10,604,331 7,244,146 Plan fiduciary net position - beginning 133,628,287 154,449,357 153,137,059 149,179,497 159,783,828 Plan fiduciary net position - ending (b) 154,449,357$ 153,137,059 $ 149,179,497 $ 159,783,828 $ 167,027,974 $ Plan net pension liability - ending (a) - (b) 57,900,033$ 62,166,241 $ 73,632,584 $ 84,661,850 $ 84,202,586 $ Plan fiduciary net position as a percentage 72.73% 71.13% 66.95% 65.37% 66.48% of the total pension liability
Covered payroll 11,224,230$ 11,922,582 $ 11,768,402 $ 11,568,474 $ 11,280,908 $ Plan net pension liability as a percentage of
covered payroll 515.85% 521.42% 625.68% 731.83% 746.42% 1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Benefit Changes: There were no benefit changes.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016,there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios 128

Measurement period 2018-19 2019-20 2020-21
Total pension liability
Service cost 3,246,398$ 3,431,014 $ 3,827,398 $ Interest 17,893,099 18,421,868 19,228,565
Differences between expected and actual experience 4,006,198 (322,974) 3,576,407 Changes of assumptions - - - Benefit payments, including refunds
of employee contributions (13,213,664) (13,813,241) (14,876,758) Net change in total pension liability 11,932,031 7,716,667 11,755,612 Total pension liability - beginning 251,230,560 263,162,591 270,879,258 Total pension liability - ending (a) 263,162,591$ 270,879,258 $ 282,634,870 $ Pension fiduciary net position
Contributions - employer 6,932,392 $ 103,113,849 $ 2,913,777 $ Contributions - employee 1,076,975 1,411,375 1,383,844 Net investment income2 10,771,929 8,702,502 59,892,826 Benefit payments, including refunds
of employee contributions (13,213,664) (13,813,241) (14,876,758) Plan to plan resources movement - - - Administrative expense (119,195) (243,150) (271,360) Other miscellaneous income/ (expense) 390 - - Net change in plan fiduciary net position 5,448,827 99,171,335 49,042,329 Plan fiduciary net position - beginning 167,027,974 172,476,801 271,648,136 Plan fiduciary net position - ending (b) 172,476,801$ 271,648,136 $ 320,690,465 $ Plan net pension liability - ending (a) - (b) 90,685,790$ (768,878) $ (38,055,595)$ Plan fiduciary net position as a percentage 65.54% 100.28% 113.46% of the total pension liability
Covered payroll 10,934,684$ 11,486,487 $ 12,681,903 $ Plan net pension liability as a percentage of
covered payroll 829.34% -6.69% -300.08%
1 2 Net of administrative expenses for measurement period 2013-14.

Notes to Schedule:

Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

Benefit Changes: There were no benefit changes.

Change of Assumptions: None in 2019 - 2021. In 2018, demographic assumptions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65% to 7.15 %. In 2016,there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (w ithout a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") - Safety Plan City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) 129

2013-141 2014-15 2015-16 2016-17 2017-18
Actuarially determined contribution 4,710,747 $ 5,153,218 $ 5,358,752 $ 6,096,263 $ 6,104,047 $ Contributions in relation to the
actuarially determined contribution (4,710,747) (5,153,218) (5,358,752) (6,096,263) (6,104,047) Contribution deficiency (excess) - $ - $ - $ - $ - $ Covered payroll2 11,922,582$ 11,768,402 $ 11,568,474 $ 11,568,474 $ 11,280,908 $ Contributions as a percentage of covered payroll 39.51% 43.79% 46.32% 52.70% 54.11% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

2.50%

2.75%
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Include one year's payroll growth using 2.75 percent
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

California Public Employees' Retirement System ("CalPERS") - Safety Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions
130

2018-19 2019-20 2020-21 2021-22
Actuarially determined contribution 6,932,392 $ 8,312,339 $ 2,711,170 $ 2,856,615 $ Contributions in relation to the
actuarially determined contribution (6,932,392) (103,113,849) (2,711,170) (2,856,615) Contribution deficiency (excess) - $ (94,801,510)$ - $ - $ Covered payroll2 10,934,684$ 11,486,487 $ 12,681,903 $ 13,030,655 $ Contributions as a percentage of covered payroll 63.40% 72.37% 21.38% 21.92% 1 2
Notes to Schedule:

Valuation date:

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation
Salary increases Varies by Entry age and Service
Payroll Growth
Investment rate of return 7.00% including inflation
Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using Scale MP-2016 published by the Society of Actuaries.

2.50%

2.75%
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Include one year's payroll growth using 2.75 percent
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021-22 were from the June 30, 2019 funding valuation report.

California Public Employees' Retirement System ("CalPERS") - Safety Plan Historical information is presented only for measurement periods after GASB 68 implementation in 2013-14.

For the Year Ended June 30, 2022
Last Ten Fiscal Years
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Contributions - Pensions (Continued)
131

Measurement period 2016-2017* 2017-2018 208-2019 2019-2020 2020-2021 Total OPEB liability
Service cost 1,079,041 $ 1,115,728 $ 972,274 $ 1,000,546 $ 1,192,947 $ Interest 849,121 970,765 1,059,759 1,060,584 820,237 Changes of benefit terms - - - - - Differences between expected and actual experience - (59,573) - (2,969,308) - Changes of assumptions (2,111,032) 1,069,938 (767,402) 2,769,257 2,766,372 Benefit payments, including refunds
of employee contributions (1,039,463) (1,151,779) (1,301,168) (1,422,435) (1,441,914) Net change in total OPEB liability (1,222,333) 1,945,079 (36,537) 438,644 3,337,642 Total OPEB liability - beginning 29,234,403 28,012,070 29,957,149 29,920,612 30,359,256 Total OPEB liability - ending (a) 28,012,070$ 29,957,149 $ 29,920,612 $ 30,359,256 $ 33,696,898 $ OPEB fiduciary net position**
Contributions - employer 1,039,463 $ 1,151,779 $ 1,301,168 $ 1,422,435 $ 1,441,914 $ Contributions - member - - - - - Net investment income - - - - - Benefit payments, including refunds
(1,039,463) (1,151,779) (1,301,168) (1,422,435) (1,441,914) Plan to plan resources movement - - - - - Administrative expense - - - - - Other expense - - - - - Net change in plan fiduciary net position - - - - - Plan fiduciary net position - beginning - - - - - Plan fiduciary net position - ending (b) -$ - $ - $ - $ - $ Plan net OPEB liability - ending (a) - (b) 28,012,070$ 29,957,149 $ 29,920,612 $ 30,359,256 $ 33,696,898 $ Plan fiduciary net position as a percentage 0.00% 0.00% 0.00% 0.00% 0.00% of the total OPEB liability
Covered employee payroll 19,234,000$ N/A N/A N/A 31,317,575 $ Plan net OPEB liability as a percentage of
covered employee payroll 145.64% N/A N/A N/A 107.60%
Notes to Schedule:
***No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. *Measurement period 2017 was the first year of implementation, therefore only five years are shown **The Plan is not funded and on a pay-as-you go basis
City of Montebello
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2022
Last Ten Fiscal Years*
Other Postemployment Benefit Plan
of employee contributions
132

SUPPLEMENTARY INFORMATION
133

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134

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)

REVENUES
Use of money and property - $ - $ 543 $ 543 $ Other revenue 1,507,000 1,507,000 1,506,936 (64) Total revenues 1,507,000 1,507,000 1,507,479 479

EXPENDITURES
Debt service:

Principal 5,876,200 5,876,200 5,876,027 173 Interest 5,171,300 5,171,300 5,170,131 1,169 Total expenditures 11,047,500 11,047,500 11,046,158 1,342

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (9,540,500) (9,540,500) (9,538,679) (863)

OTHER FINANCING SOURCES
Transfers in 9,532,700 9,532,700 9,532,529 (171) Total other financing sources 9,532,700 9,532,700 9,532,529 (171) NET CHANGE IN FUND BALANCE (7,800)$ (7,800) $ (6,150) (1,034) $

FUND BALANCE
Beginning of year 377,856
End of year 371,706$
City of Montebello
Schedule of Revenues, Expenditure, and Change in Fund Balance - Budget and Actual Public Financing Authority Debt Service Fund
For the Year Ended June 30, 2022
135

This page intentionally left blank.
136

CDBG Fund – This fund was created to account for financial transactions relating to the Community Development Block Grant Program of the U.S. Department of Housing and Urban Development. Program income is currently used for low interest housing rehabilitation loans and for grants to non-profit organizations for community services.

HOME Fund – This fund was created to account for financial translations relating to the Federal HOME program. Program income from HOME funds is used to meet housing needs for low income households in accordance with federal guidelines.

NONMAJOR

GOVERNMENTAL FUNDS
Special Revenue Funds
Supplemental Law Enforcement Fund – The State legislature established a 0.15% Vehicle License Fee ("VLF") in 2009 (in addition to the 0.65% base VLF fee). Revenue from the 0.15% fee is deposited in the Local Safety and Public Protection Account and revenues are sued to fund a variety of law enforcement programs previously paid from the State General Fund. The County of Los Angeles distributes these funds to eligible cities through the property tax allocation process.

Park Development Fund - To account for new construction license fees received. These fees are used for the maintenance and improvement of the City's parks.

Grants Fund - The City receives numerous grants and records the revenues and related expenditures in this fund for grants not reported in other funds. This fund only reports non-Transit grants.

Justice Assistance Grants Fund – The Justice Assistance Grant program is the leading source of federal justice funding to state and local jurisdictions. The program provides local governments with critical funding to support law enforcement, prosecution, indigent defense, courts, crime prevention and education, corrections and community corrections, drug treatment and enforcement, planning, evaluation, technology improvement, and crime victim and witness initiatives and mental health programs and related law enforcement and corrections programs, including behavioral programs and crisis intervention teams.

Drug Enforcement Fund - This fund records proceeds from revenue sharing from various Federal and State asset forfeiture programs. Montebello Police Department personnel participate in Federal and State drug enforcement task force operations.

Depending on the operation, and the amount of assets (i.e., money, cars, homes, etc.) seized as part of the operation, a portion of proceeds from the assets are shared by participating law enforcement agencies. These funds have strict spending guidelines, and generally Montebello has utilized the funds to pay for dispatch and related software, as well as some equipment per the program guidelines.

Air Quality Fund - Assembly Bill 2766 was adopted in 1990 to provide revenue to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies. The Department of Motor Vehicles collects a registration surcharge of $6 per vehicle to fund the AB 2766 program. Forty percent of the AB 2766 fund (approximately $20 million annually in the South Coast Air Basin) is returned to the cities and counties to fund transportation related projects that reduce air pollution. AB 2766 revenue is distributed on a quarterly basis to participating cities and counties based on the prorated share of their population. 137

NONMAJOR

GOVERNMENTAL FUNDS
TDA Article 3 Fund – Transportation Development Act (TDA), Article 3 funds are used by cities within Los Angeles County for the planning and construction of bicycle and pedestrian facilities. By ordinance, LA County Metro is responsible for administering the program and establishing its policies. TDA, Article 3 funds are allocated annually on a per capita basis to both cities and the County of Los Angeles.

Special Revenue Funds (Continued)
Measure A Local – The Los Angeles County Safe, Clean Neighborhood Parks and Beaches Measure of 2016 ("Measure A") was approved by Los Angeles County voters in 2016. This measure provides funding for local parks, beaches, open space, and water resources through the levy of an annual parcel tax of 1.5 cents per square foot of development. Local communities are allocated a portion of funding based on park needs.

Housing Successor – With the dissolution of redevelopment statewide effective January 31, 2012, the City of Montebello chose to become the Successor Agency for the former Redevelopment Agency. Included in that action was the former Housing Agency, with all assets, liabilities and revenue and expense activity now recorded in the Housing Successor Agency Fund.

George Miller Estate Donation Fund – This fund was set up per the instructions and directions of a settlement agreement reached between the City and the estate of George Miller. Mr. Miller was a long-time Montebello firefighter and left a portion of his estate to the City to be utilized for fire education and training opportunities. The settlement agreement directed the donation to be deposited and any expenditures related to the donation in a separate fund.

Measure W Fund – Approved by Los Angeles County voters in 2018, Measure W establishes a parcel tax (i.e., property tax assessment) which generates revenue for projects, infrastructure, and programs to capture, treat and recycle rainwater. Also known as the "Safe Clean Water Act,” parcels are taxed at a rate of $.025 (2.5 cents) per square foot of impermeable area (i.e., paved or built- on surfaces such as concrete patios or driveways).

Inmate Welfare Fund – This fund was created to record revenue previously recorded in a Trust and Agency fund account (Fund 500). The revenue comes from inmates incarcerated in the City of Montebello Jail and proceeds are utilized for inmate welfare related purposes.
138

Supplemental Justice
Law Park Drug Air Assistance
Enforcement Development Enforcement Quality Grants
ASSETS
Cash and investments 114,595 $ 21,098 $ 491,754 $ 159,256 $ 36,734 $ Accounts receivable - - 238,300 20,692 - Tax receivable - - - - - Notes receivable - - - - - Due from other funds - - - - - Due from other governments - - - - - Prepaid items - - 121,437 - - Property held for resale - - - - - Total assets 114,595$ 21,098 $ 851,491 $ 179,948 $ 36,734 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 7,169 $ - $ 891 $ 1,067 $ - $ Unearned revenue - - - - - Due to other funds 278,102 - - - - Total liabilities 285,271 - 891 1,067 - Deferred Inflows of Resources:

Unavailable revenue - - - - - Total deferred inflows of resources - - - - - Fund Balances:

Nonspendable - - 121,437 - - Restricted - 21,098 729,163 178,881 36,734 Unassigned (deficit) (170,676) - - - - Total fund balances (deficit) (170,676) 21,098 850,600 178,881 36,734 Total liabilities and fund balances 114,595$ 21,098 $ 851,491 $ 179,948 $ 36,734 $ (Continued)
City of Montebello
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
Special Revenue Funds
139

George Miller
TDA Estate
Grants CDBG HOME Article 3 Donation
ASSETS
Cash and investments - $ - $ 111,940$ - $ 201,373$ Accounts receivable 1,412,489 487,205 38,764 446 - Tax receivable 1,818 - - - - Notes receivable - 350,693 145,000 - - Due from other funds - - - - - Due from other governments - - - - - Prepaid items - - - - - Property held for resale - - - - - Total assets 1,414,307$ 837,898 $ 295,704 $ 446 $ 201,373$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 139,788 $ 80,685 $ 2,539 $ - $ 2,039$ Unearned revenue 310,021 - - - - Due to other funds 615,091 432,856 - 446 - Total liabilities 1,064,900 513,541 2,539 446 2,039 Deferred Inflows of Resources:

Unavailable revenue - 416,641 38,764 - - Total deferred inflows of resources - 416,641 38,764 - - Fund Balances:

Nonspendable - - - - - Restricted 349,407 - 254,401 - 199,334 Unassigned (deficit) - (92,284) - - - Total fund balances (deficit) 349,407 (92,284) 254,401 - 199,334 Total liabilities and fund balances 1,414,307$ 837,898 $ 295,704 $ 446 $ 201,373$ (Continued)
Special Revenue Funds
City of Montebello
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
140

Total
Inmate Nonmajor
Welfare Measure A Housing Governmental
Measure W Fund Local Successor Funds
ASSETS
Cash and investments - $ 765 $ 8,216 $ 632,655 $ 1,778,386 $ Accounts receivable 884,710 - 37,688 - 3,120,294 Tax receivable - - - - 1,818 Notes receivable - - - - 495,693 Due from other funds - - - 1,475,000 1,475,000 Due from other governments - - - 4,944,689 4,944,689 Prepaid items - - - - 121,437 Property held for resale - - - 996,830 996,830 Total assets 884,710$ 765 $ 45,904 $ 8,049,174 $ 12,934,147 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 69,375 $ - $ 45,904$ - $ 349,457$ Unearned revenue 15,335 - - - 325,356 Due to other funds 585,420 - - 3,653 1,915,568 Total liabilities 670,130 - 45,904 3,653 2,590,381 Deferred Inflows of Resources:

Unavailable revenue - - - - 455,405 Total deferred inflows of resources - - - - 455,405 Fund Balances:

Nonspendable - - - - 121,437 Restricted 214,580 765 - 8,045,521 10,029,884 Unassigned (deficit) - - - - (262,960) Total fund balances (deficit) 214,580 765 - 8,045,521 9,888,361 Total liabilities and fund balances 884,710$ 765 $ 45,904 $ 8,049,174 $ 12,934,147 $ (Concluded)
Special Revenue Funds
City of Montebello
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2022
141

Supplemental Justice
Law Park Drug Air Assistance
Enforcement Development Enforcement Quality Grants
REVENUES:

Intergovernmental 161,285 $ - $ 990,962$ 81,006 $ - $ Use of money and property - 104 1,449 650 182 Other revenue - - - - - Total revenues 161,285 104 992,411 81,656 182 EXPENDITURES:

Current:

Public safety 159,489 - 383,636 - - Public works - - - - - Housing and community development - - - 19,133 - Parks and recreation - - - - - Capital outlay 1,794 - 90,228 - - Debt service:

Principal payment - - - - - Interest and fiscal charges - - - - - Total expenditures 161,283 - 473,864 19,133 -

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 2 104 518,547 62,523 182 NET CHANGES IN FUND BALANCES 2 104 518,547 62,523 182 FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 16) (170,678) 20,994 332,053 116,358 36,552 End of year (170,676) $ 21,098 $ 850,600 $ 178,881 $ 36,734 $ (Continued)
Special Revenue Funds
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2022
142

George Miller
TDA Estate
Grants CDBG HOME Article 3 Donation
REVENUES:

Intergovernmental 2,112,105 $ 721,551 $ 173,938 $ - $ - $ Use of money and property - - - - 1,152 Other revenue 550 - 153 49,373 - Total revenues 2,112,655 721,551 174,091 49,373 1,152 EXPENDITURES:

Current:

Public safety 845,293 455,076 - - 73,224 Public works - - - - - Housing and community development 481,757 245,810 38,763 - - Parks and recreation 246,909 - - - - Capital outlay 81,560 - - 1,785 - Debt service:

Principal payment - 425,000 - - - Interest and fiscal charges - 46,595 - - - Total expenditures 1,655,519 1,172,481 38,763 1,785 73,224

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 457,136 (450,930) 135,328 47,588 (72,072) NET CHANGES IN FUND BALANCES 457,136 (450,930) 135,328 47,588 (72,072) FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 16) (107,729) 358,646 119,073 (47,588) 271,406 End of year 349,407 $ (92,284) $ 254,401 $ - $ 199,334$ (Continued)
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Special Revenue Funds
143

Total
Inmate Housing Nonmajor
Welfare Measure Successor Governmental
Measure W Fund A Fund Funds
REVENUES:

Intergovernmental 869,375 $ - $ 37,688$ - $ 5,147,910 Use of money and property - 49 - 10,361 13,947 Other revenue - 221 - 2,100 52,397 Total revenues 869,375 270 37,688 12,461 5,214,254 EXPENDITURES:

Current:

Public safety - - - - 1,916,718 Public works 869,375 - - - 869,375 Housing and community development - - - 25,083 810,546 Parks and recreation - - 37,688 - 284,597 Capital outlay - 16,943 - - 192,310 Debt service:

Principal payment - - - - 425,000 Interest and fiscal charges - - - - 46,595 Total expenditures 869,375 16,943 37,688 25,083 4,545,141

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES - (16,673) - (12,622) 669,113 NET CHANGES IN FUND BALANCES - (16,673) - (12,622) 669,113 FUND BALANCES (DEFICIT):

Beginning of year, as restated (Note 16) 214,580 17,438 - 8,058,143 9,219,248 End of year 214,580 $ 765 $ - $ 8,045,521$ 9,888,361 $ (Concluded)
Special Revenue Funds
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2022
144

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 150,000 $ 150,000 $ 161,285 $ 11,285 $ Total revenues 150,000 150,000 161,285 11,285 EXPENDITURES:

Current:

Public safety 347,100 347,100 159,489 187,611 Capital outlay - - 1,794 (1,794) Total expenditures 347,100 347,100 161,283 185,817 NET CHANGE IN FUND BALANCE (197,100)$ (197,100) $ 2 197,102$ FUND BALANCE (DEFICIT):

Beginning of year (170,678)
End of Year (170,676)$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Supplemental Law Enforcement Special Revenue Fund
145

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property 250$ 250 $ 104 $ (146) $ Total revenues 250 250 104 (146) NET CHANGE IN FUND BALANCE 250$ 250 $ 104 (146) $ FUND BALANCE:

Beginning of year 20,994
End of Year 21,098$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Park Development Special Revenue Fund
146

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 250,000 $ 250,000 $ 990,962 $ 740,962 $ Use of money and property 1,500 1,500 1,449 (51) Total revenues 251,500 251,500 992,411 740,911 EXPENDITURES:

Current:

Public safety 476,000 476,000 383,636 92,364 Capital outlay 40,000 101,084 90,228 10,856 Total expenditures 516,000 577,084 473,864 103,220 NET CHANGE IN FUND BALANCE (264,500)$ (325,584) $ 518,547 844,131 $ FUND BALANCE:

Beginning of year 332,053
End of Year 850,600$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Drug Enforcement Special Revenue Fund
147

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 82,000 $ 82,000 $ 81,006 $ (994) $ Use of money and property 2,000 2,000 650 (1,350) Total revenues 84,000 84,000 81,656 (2,344) EXPENDITURES:

Current:

Housing and community development 28,700 32,700 19,133 13,567 Capital outlay 200,000 196,000 - 196,000 Total expenditures 228,700 228,700 19,133 209,567 NET CHANGE IN FUND BALANCE (144,700)$ (144,700) $ 62,523 207,223 $ FUND BALANCE:

Beginning of year 116,358
End of Year 178,881$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Air Quality Special Revenue Fund
148

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property 500$ 500 $ 182 $ (318) $ Total revenues 500 500 182 (318) NET CHANGE IN FUND BALANCE 500$ 500 $ 182 (318) $ FUND BALANCE:

Beginning of year 36,552
End of Year 36,734$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Justice Assistance Grants Special Revenue Fund
149

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 2,177,200 $ 3,175,453 $ 2,112,105 $ (1,063,348) $ Other revenue - - 550 550 Total revenues 2,177,200 3,175,453 2,112,655 (1,062,798) EXPENDITURES:

Current:

Public safety 1,141,000 2,219,291 845,293 1,373,998 Parks, recreation, and culture 1,155,100 888,100 246,909 641,191 Housing and community development 105,000 105,000 481,757 (376,757) Capital outlay 719,658 757,917 81,560 676,357 Total expenditures 3,120,758 3,970,308 1,655,519 2,314,789 NET CHANGE IN FUND BALANCE (943,558)$ (794,855) $ 457,136 1,251,991 $ FUND BALANCE (DEFICIT):

Beginning of year (107,729)
End of Year 349,407$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Grants Special Revenue Fund
150

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 1,587,450 $ 1,587,450 $ 721,551 $ (865,899) $ Total revenues 1,587,450 1,587,450 721,551 (865,899) EXPENDITURES:

Current:

Public safety 50,000 893,976 455,076 438,900 Housing and community development 1,067,600 682,876 245,810 437,066 Debt service:

Principal 425,000 425,000 425,000 - Interest 46,600 46,600 46,595 5 Total debt service 471,600 471,600 471,595 5 Total expenditures 1,589,200 2,048,452 1,172,481 875,971 NET CHANGE IN FUND BALANCE (1,750)$ (461,002) $ (450,930) 10,072 $ FUND BALANCE (DEFICIT):

Beginning of year, as restated (Note 16) 358,646
End of Year (92,284)$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual CDBG Special Revenue Fund
151

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental - $ - $ 173,938$ 173,938 $ Other revenue 400,000 400,000 153 (399,847) Total revenues 400,000 400,000 174,091 (225,909) EXPENDITURES:

Current:

Housing and community development 502,400 505,987 38,763 467,224 Total expenditures 502,400 505,987 38,763 467,224 NET CHANGE IN FUND BALANCE (102,400)$ (105,987) $ 135,328 241,315 $ FUND BALANCE:

Beginning of year, as restated (Note 16) 119,073
End of Year 254,401$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual HOME Special Revenue Fund
152

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Other revenue 46,500 $ 46,500 $ 49,373 $ 2,873 $ Total revenues 46,500 46,500 49,373 2,873 EXPENDITURES:

Capital outlay 91,088 92,872 1,785 91,087 Total expenditures 91,088 92,872 1,785 91,087 NET CHANGE IN FUND BALANCE (44,588)$ (46,372) $ 47,588 93,960 $ FUND BALANCE (DEFICIT):

Beginning of year (47,588)
End of Year -$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual TDA Article 3 Special Revenue Fund
153

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property 750$ 750 $ 1,152 $ 402 $ Total revenues 750 750 1,152 402 EXPENDITURES:

Current:

Public safety 65,750 65,750 73,224 (7,474) Total expenditures 65,750 65,750 73,224 (7,474) NET CHANGE IN FUND BALANCE (65,000)$ (65,000) $ (72,072) (7,072) $ FUND BALANCE:

Beginning of year 271,406
End of Year 199,334$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual George Miller Estate Donations Special Revenue Fund
154

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 900,000 $ 900,000 869,375 $ (30,625) $ Total revenues 900,000 900,000 869,375 (30,625) Current:

Public works - $ 298,447$ 869,375 $ (570,928) $ Total expenditures - 298,447 869,375 (570,928) NET CHANGE IN FUND BALANCE -$ (298,447)$ - 298,447$ FUND BALANCE:

Beginning of year 214,580
End of Year 214,580$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Measure W Special Revenue Fund
155

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental - $ - $ 37,688$ 37,688 $ Total revenues - - 37,688 37,688 EXPENDITURES:

Current:

Parks and recreation - $ 66,000 $ 37,688 $ 28,312 $ Total expenditures - 66,000 37,688 28,312 NET CHANGE IN FUND BALANCE -$ (66,000)$ - 66,000$ FUND BALANCE:

Beginning of year -
End of Year -$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Measure A Special Revenue Fund
156

City of Montebello
For the Year Ended June 30, 2022
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Use of money and property -$ - $ 10,361$ 10,361 $ Other revenue - - 2,100 2,100 Total revenues - - 12,461 12,461 EXPENDITURES:

Current:

Housing and community development 2,500 2,500 25,083 (22,583) Total expenditures 2,500 2,500 25,083 (22,583) NET CHANGE IN FUND BALANCE (2,500)$ (2,500) $ (12,622) (10,122) $ FUND BALANCE:

Beginning of year 8,058,143
End of Year 8,045,521$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Housing Successor Agency Special Revenue Fund
157

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158

Measure R Local Fund - Measure R was approved by Los Angeles County voters in November 2008. Measure R is an ordinance authorizing an additional half cent sales tax to fund traffic relief and rail expansion according to an expenditure plan contained in the ordinance. The sales tax became effective July 1, 2009 and will remain in effect for 30 years (expiring July 1, 2039).

Measure M Local Fund – Measure M was approved and imposes a retail transaction and use tax at the rate of one-half of one percent within Los Angeles County. The sales tax will increase to one percent (1%) on July 1, 2039, when the Measure R one-half of one percent (0.5%) tax expires (see description of Measure R above). The sales tax is in addition to any other taxes authorized by law.

The sales tax has no expiration date.

TRANSPORTATION AND STREET

IMPROVEMENT FUNDS
Gas Tax Fund - The State of California levies a per gallon gasoline tax. Cities and Counties receive revenue from the motor vehicle fuel taxes imposed pursuant to Revenue and Taxation Code Section 7360(a) and (b) through the Highway User Tax Account (HUTA) as outlined in the Streets and Highways Code Sections 2103, 2105, 2107, 2017.5.

Road Maintenance and Rehabilitation Fund - The Road Repair and Accountability Act of 2017 (SB 1) set new transportation taxes allocated to Cities and Counties through the Road Maintenance and Rehabilitation Account (RMRA): additional $0.12 per gallon increase to the gasoline excise tax (with annual inflation adjustments beginning July 1, 2020), additional $0.20 per gallon increase to the diesel fuel excise tax (with half of the revenue going to the RMRA), additional vehicle registration tax, and additional $100 per vehicle registration tax on zero emissions vehicles.

Prop A Local Fund - The Proposition A sales tax, approved by Los Angeles County voters in 1980, is a half cent tax on most retail sales in Los Angeles County. LA County Metro returns 25% of the Proposition A tax to the Cities in the County for transportation purposes. The balance of the tax revenue is restricted to 35% for rail development and 40% for discretionary purposes.

Prop C Local Fund - The Proposition C sales tax, approved by LA County voters in 1990, is an additional half cent tax on retail sales in Los Angeles County. LA County Metro returns 20% of the Proposition C tax to the cities in the County for transportation purposes. The balance of the Proposition C tax is restricted 40% for construction and operation of the bus transit and rail system; 5% to expand rail and bus security; 10% for commuter rail, construction of transit centers, park and ride lots and freeway bus stops; and 25% for transit-related improvements to freeways and state highways.

Special Revenue Funds
159

Road
Gas Maintenance Prop A Prop C
Tax & Rehabilitation Local Local
ASSETS
Cash and investments 1,801,645 $ 2,421,868 $ 6,054,012 $ 1,220,281 $ Restricted cash and investments:

Held by fiscal agent - - - 10,974,746 Accounts receivable 116,139 113,337 - - Prepaid items - - - 28,970 Total assets 1,917,784$ 2,535,205 $ 6,054,012 $ 12,223,997 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 170,556 $ 446,101 $ 355 $ 20,365 $ Total liabilities 170,556 446,101 355 20,365 Fund Balances:

Nonspendable - - - 28,970 Restricted 1,747,228 2,089,104 6,053,657 12,174,662 Total fund balances 1,747,228 2,089,104 6,053,657 12,203,632 Total liabilities and fund balances 1,917,784$ 2,535,205 $ 6,054,012 $ 12,223,997 $ (Continued)
City of Montebello
Combining Balance Sheet
Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds June 30, 2022
160

Total
Transportation
and Street
Measure R Measure M Improvement
Local Local Funds
ASSETS
Cash and investments 1,280,767 $ 1,503,974 $ 14,282,547 $ Restricted cash and investments:

Held by fiscal agent 1,626,805 2,185,219 14,786,770 Accounts receivable - - 229,476 Prepaid items - - 28,970 Total assets 2,907,572$ 3,689,193 $ 29,327,763 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 155 $ 19,605 $ 657,137 $ Total liabilities 155 19,605 657,137 Fund Balances:

Nonspendable - - 28,970 Restricted 2,907,417 3,669,588 28,641,656 Total fund balances 2,907,417 3,669,588 28,670,626 Total liabilities and fund balances 2,907,572$ 3,689,193 $ 29,327,763 $ (Concluded)
City of Montebello
Combining Balance Sheet (Continued)
Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds June 30, 2022
161

Road
Gas Maintenance Prop A Prop C
Tax & Rehabilitation Local Local
REVENUES:

Intergovernmental 1,474,746 $ 1,261,049 $ 1,604,678 $ 1,331,047 $ Use of money and property 8,912 13,705 27,493 17,753 Total revenues 1,483,658 1,274,754 1,632,171 1,348,800 EXPENDITURES:

Current:

Public works 372,718 9,700 32,620 116,904 Capital outlay 568,861 1,733,745 101,063 154,446 Total expenditures 941,579 1,743,445 133,683 271,350

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 542,079 (468,691) 1,498,488 1,077,450 OTHER FINANCING (USES):

Transfers out (300,000) - - (708,779) Total other financing (uses) (300,000) - - (708,779) NET CHANGES IN FUND BALANCES 242,079 (468,691) 1,498,488 368,671 FUND BALANCES:

Beginning of year 1,505,149 2,557,795 4,555,169 11,834,961 End of year 1,747,228 $ 2,089,104 $ 6,053,657 $ 12,203,632 $ (Continued)
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds For the Year Ended June 30, 2022
162

Total
Transportation
and Street
Measure R Measure M Improvement
Local Local Funds
REVENUES:

Intergovernmental 998,124 $ 1,129,492 $ 7,799,136 Use of money and property 7,525 9,143 84,531 Total revenues 1,005,649 1,138,635 7,883,667 EXPENDITURES:

Current:

Public works 185,893 62,657 780,492 Capital outlay 1,102,096 1,736,788 5,396,999 Total expenditures 1,287,989 1,799,445 6,177,491

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (282,340) (660,810) 1,706,176 OTHER FINANCING (USES):

Transfers out (527,844) (599,293) (2,135,916) Total other financing (uses) (527,844) (599,293) (2,135,916) NET CHANGES IN FUND BALANCES (810,184) (1,260,103) (429,740) FUND BALANCES:

Beginning of year 3,717,601 4,929,691 29,100,366 End of year 2,907,417$ 3,669,588 $ 28,670,626 $ (Concluded)
City of Montebello
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
Transportation and Street Improvement Special Revenue Funds For the Year Ended June 30, 2022
163

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)
REVENUES:

Intergovernmental 1,518,800 $ 1,518,800 1,474,746 $ (44,054) $ Use of money and property - - 8,912 8,912 Total revenues 1,518,800 1,518,800 1,483,658 (35,142) EXPENDITURES:

Current:

Public works 289,700 333,368 372,718 (39,350) Capital outlay 2,726,504 2,709,369 568,861 2,140,508 Total expenditures 3,016,204 3,042,737 941,579 2,101,158

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES (1,497,404) (1,523,937) 542,079 2,066,016 OTHER FINANCING USES:

Transfers out (300,000) (300,000) (300,000) - NET CHANGE IN FUND BALANCE (1,797,404)$ (1,823,937) $ 242,079 2,066,016 $

FUND BALANCE
Beginning of year 1,505,149
End of year 1,747,228$
City of Montebello
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2022
164

Variance with
Original Final Final Budget
Budget Budget Actual Over/(Under)
REVENUES:

Intergovernmental 1,220,700 $ 1,220,700 $ 1,261,049 $ 40,349 $ Use of money and property 5,000 5,000 13,705 8,705 Total revenues 1,225,700 1,225,700 1,274,754 49,054 EXPENDITURES:

Current:

Public works 9,700 9,700 9,700 - Capital outlay 3,515,000 3,542,312 1,733,745 1,808,567 Total expenditures 3,524,700 3,552,012.00 1,743,445 1,808,567 NET CHANGE IN FUND BALANCE (2,299,000)$ (2,326,312) $ (468,691) 1,857,621 $ FUND BALANCE:

Beginning of year 2,557,795
End of year 2,089,104$
City of Montebello
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Road Maintenance and Rehabilitation Special Revenue Fund For the Year Ended June 30, 2022
165

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 1,283,200 $ 1,283,200 $ 1,604,678 $ 321,478 $ Use of money and property 16,000 16,000 27,493 11,493 Total revenues 1,299,200 1,299,200 1,632,171 332,971 EXPENDITURES:

Current:

Public works 9,700 29,336 32,620 (3,284) Capital outlay 1,785,000 1,883,985 101,063 1,782,922 Total expenditures 1,794,700 1,913,321 133,683 1,779,638 NET CHANGE IN FUND BALANCE (495,500)$ (614,121) $ 1,498,488 2,112,609 $ FUND BALANCE:

Beginning of year 4,555,169
End of year 6,053,657$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Prop A Local Special Revenue Fund
For the Year Ended June 30, 2022
166

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 1,064,400 $ 1,064,400 $ 1,331,047 $ 266,647 $ Use of money and property 16,000 16,000 17,753 1,753 Total revenues 1,080,400 1,080,400 1,348,800 268,400 EXPENDITURES:

Current:

Public works 19,700 19,700 116,904 (97,204) Capital outlay 385,000 428,870 154,446 274,424 Total expenditures 404,700 448,570 271,350 177,220

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 675,700 631,830 1,077,450 445,620 OTHER FINANCING USES:

Transfers out (708,800) (708,800) (708,779) 21 NET CHANGE IN FUND BALANCE 675,700$ 631,830 $ 368,671 445,641 $ FUND BALANCE:

Beginning of year 11,834,961
End of year 12,203,632$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Prop C Local Special Revenue Fund
For the Year Ended June 30, 2022
167

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 798,300 $ 798,300 $ 998,124 $ 199,824 $ Use of money and property 5,500 5,500 7,525 2,025 Total revenues 803,800 803,800 1,005,649 201,849 EXPENDITURES:

Current:

Public works 15,700 15,700 185,893 (170,193) Capital outlay - 1,273,160 1,102,096 171,064 Total expenditures 15,700 1,288,860 1,287,989 871

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 788,100 (485,060) (282,340) 202,720 OTHER FINANCING USES:

Transfers out (527,800) (527,800) (527,844) (44) NET CHANGE IN FUND BALANCE 260,300$ (1,012,860) $ (810,184) 202,676 $ FUND BALANCE:

Beginning of year 3,717,601
End of year 2,907,417$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Measure R Local Special Revenue Fund
For the Year Ended June 30, 2022
168

City of Montebello
Variance with
Original Final Actual Final Budget
Budget Budget Amounts Over/(Under)
REVENUES:

Intergovernmental 904,800 $ 904,800 $ 1,129,492 $ 224,692 $ Use of money and property 5,500 5,500 9,143 3,643 Total revenues 910,300 910,300 1,138,635 228,335 EXPENDITURES:

Current:

Public works 9,700 9,700 62,657 (52,957) Capital outlay 521,570 3,032,363 1,736,788 1,295,575 Total expenditures 531,270 3,042,063 1,799,445 1,242,618

EXCESS (DEFICIENCY) OF REVENUES
(UNDER) EXPENDITURES 379,030 (2,131,763) (660,810) 1,470,953 OTHER FINANCING USES:

Transfers out (599,300) (599,300) (599,293) 7 NET CHANGE IN FUND BALANCE (220,270)$ (2,731,063) $ (1,260,103) 1,470,960 $ FUND BALANCE:

Beginning of year 4,929,691
End of year 3,669,588$
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget to Actual (Continued) Measure M Local Special Revenue Fund
For the Year Ended June 30, 2022
169

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170

STATISTICAL SECTION
171

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172

Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 174-184 Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue sources, the property tax. 185-189
Debt Capacity
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. 190-195 Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 196-198 Operating Information
These schedules contain service an d infrastructure data to help the reader understan d how the information in the City's financial report relates to the services the City provides and the activities it performs.
199-201
City of Montebello
Statistical Section Overview
(Unaudited)
This part of the City of Montebello's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the Cit
y's overall financial health.
173

2012-13 2013-14 2014-15 2015-16 2016-17
Government Activities
Invested in capital assets, net of related debt 54,636,719$ 55,212,827 $ 56,943,195 $ 58,082,755 $ 58,372,453 $ Restricted 20,219,054 29,141,471 22,556,230 27,459,377 37,978,261 Unrestricted (4,370,518) (13,656,834) (93,615,680) (96,385,527) (152,645,842) Total governmental activities net assets 70,485,255 70,697,464 (14,116,255) (10,843,395) (56,295,128) Business-Type Activities
Invested in capital assets, net of related debt 55,753,529 53,562,215 51,644,871 49,943,300 62,240,064 Restricted 302,120 1,017,411 496,628 153,929 37,063,750 Unrestricted (8,619,600) (8,758,663) (29,367,364) (29,377,639) (26,856,332) 47,436,049 45,820,963 22,774,135 20,719,590 72,447,482 Primary Government
Invested in capital assets, net of related debt 110,390,248 108,775,042 108,588,066 108,026,055 120,612,517 Restricted 20,521,174 30,158,882 23,052,858 27,613,306 75,042,011 Unrestricted (12,990,118) (22,415,497) (122,983,044) (125,763,166) (179,502,174) 117,921,304$ 116,518,427 $ 8,657,880 $ 9,876,195 $ 16,152,354 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
174

2017-18 2018-19 2019-20 2020-21 2021-22
Government Activities
Invested in capital assets, net of related debt 60,131,857$ 56,932,832 $ 37,577,753 $ 76,850,718 $ 79,727,948 $ Restricted 30,870,850 36,227,927 40,673,199 59,934,222 45,666,495 Unrestricted (104,996,678) (114,003,833) (112,400,654) (156,799,494) (124,613,112) Total governmental activities net assets (13,993,971) (20,843,074) (34,149,702) (20,014,554) 781,331 Business-Type Activities
Invested in capital assets, net of related debt 50,936,245 51,863,185 45,101,842 30,182,517 34,948,689 Restricted 26,656,264 16,260,962 12,617,206 11,202,567 12,636,555 Unrestricted (70,241,601) (50,555,062) (40,685,697) (29,921,564) (17,882,728) 7,350,908 17,569,085 17,033,351 11,463,520 29,702,516 Primary Government
Invested in capital assets, net of related debt 111,068,102 108,796,017 82,679,595 107,033,235 114,676,637 Restricted 57,527,114 52,488,889 53,290,405 71,136,789 58,303,050 Unrestricted (175,238,279) (164,558,895) (153,975,457) (186,721,058) (142,495,840) (6,643,063)$ (3,273,989) $ (18,005,457) $ (8,551,034) $ 30,483,847 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
175

2012-13 2013-14 2014-15 2015-16 2016-17
Expenses:

Governmental Activities:

General government 3,397,386 $ 3,868,688 $ 8,214,000 $ 9,376,874 $ 5,800,255 $ Public safety 31,736,790 33,376,844 33,233,838 34,991,222 38,180,200 Public works 6,222,809 7,063,899 7,145,909 7,314,357 6,892,489 Parks, recreation, and culture 5,183,532 4,943,297 4,433,420 4,244,463 3,589,256 Housing and community development 2,042,906 4,045,684 3,662,170 4,149,321 4,625,548 Unallocated infrastructure depreciation 704,807 704,807 704,807 464,900 704,807 Interest on long-term debt 1,954,908 1,254,337 1,908,319 1,238,015 3,882,293 Total governmental activities and expenses 51,243,138 55,257,556 59,302,463 61,779,152 63,674,848 Business-Type Activities:

Transit system 28,190,745 30,850,208 29,557,024 28,530,818 28,540,085 Golf course 3,015,645 2,965,428 3,095,101 2,914,099 2,745,203 Montebello Hilton 3,558,013 4,302,388 4,600,977 4,742,125 4,866,766 Water utility 2,515,604 2,806,018 2,945,512 3,138,928 2,731,099 Hotel2Suites - - - - - Interest on long-term debt - - - - - Total business-type activities and expenses 37,280,007 40,924,042 40,198,614 39,325,970 38,883,153 Total primary government expenses 88,523,145 96,181,598 99,501,077 101,105,122 102,558,001 Program revenues:

Governmental Activities:

Charges for services:

General government 3,071,973 4,074,735 3,720,526 3,548,576 3,709,505 Public safety 2,103,502 2,767,256 2,644,432 3,167,766 3,311,979 Public works 5,377,463 5,427,918 5,391,630 5,565,885 5,515,371 Parks, recreation, and culture 665,468 533,575 527,346 414,018 471,348 Housing and community development ---- - Operating grants and contributions 8,519,753 8,292,687 9,522,821 10,109,717 7,382,419 Capital grants and contributions - - - - - Total governmental activities program revenues 19,738,159 21,096,171 21,806,755 22,805,962 20,390,622 Business-Type Activities:

Charges for services:

Transit system 6,078,505 5,985,798 5,838,678 5,680,227 5,086,810 Golf course 2,389,101 2,385,213 2,312,095 2,294,518 2,091,410 Montebello Hilton 4,316,746 5,522,384 6,270,196 6,579,766 6,834,772 Water utility 1,325,834 2,121,732 2,505,234 2,295,158 2,409,339 Hotel2Suites - - - - - Operating grants and contributions 18,834,317 19,726,264 20,914,063 19,314,666 20,593,875 Capital grants and contributions 7,777,911 2,764,857 1,780,967 1,726,259 5,540,308 Total business-type activities program revenues 40,722,414 38,506,248 39,621,233 37,890,594 42,556,514 Primary government program revenues 60,460,573 59,602,419 61,427,988 60,696,556 62,947,136 Net (Expense) Revenue:

Governmental activities: (31,504,979) (34,161,385) (37,495,708) (38,973,190) (43,284,226) Business-type activities: 3,442,407 (2,417,794) (577,381) (1,435,376) 3,673,361 Total primary government net (expense) revenue (28,062,572)$ (36,579,179) $ (38,073,089) $ (40,408,566) $ (39,610,865) $ (Continued)
Source: City Financial Statements
Fiscal Year
City of Montebello
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
176

2017-18 2018-19 2019-20 2020-21 2021-22
Expenses:

Governmental Activities:

General government 10,590,425 $ 15,966,059 $ 15,829,352 $ 2,478,196 $ 13,983,490 $ Public safety 39,719,749 37,512,859 41,005,310 54,764,550 31,790,604 Public works 9,824,917 8,765,502 10,062,947 2,737,856 16,052,469 Parks, recreation, and culture 3,948,193 4,298,740 5,382,393 1,367,331 5,406,906 Housing and community development 2,923,175 2,960,143 3,401,688 643,492 2,346,627 Unallocated infrastructure depreciation 704,807 700,608 700,607 713,200 700,608 Interest on long-term debt 356,579 605,163 5,307,866 5,251,771 5,548,594 Total governmental activities and expenses 68,067,845 70,809,074 81,690,163 67,956,396 75,829,298 Business-Type Activities:

Transit system 34,587,386 35,629,180 37,053,009 41,718,320 29,280,305 Golf course 3,169,377 2,699,786 2,378,067 2,779,651 2,735,232 Montebello Hilton 4,590,912 4,720,613 4,306,465 3,096,193 5,088,673 Water utility 2,697,085 2,293,908 2,358,938 2,290,649 2,343,193 Hotel2Suites 30,205 5,674,308 6,167,195 5,612,342 9,782,114 Interest on long-term debt 3,409,286 3,077,709 2,983,151 4,307,914 - Total business-type activities and expenses 48,484,251 54,095,504 55,246,825 59,805,069 49,229,517 Total primary government expenses 116,552,096 124,904,578 136,936,988 127,761,465 125,058,815 Program revenues:

Governmental Activities:

Charges for services:

General government 3,921,684 5,847,466 3,755,079 4,745,318 4,823,331 Public safety 3,227,705 3,372,826 3,473,591 3,711,080 4,576,406 Public works 4,421,025
4,793,062 4,962,127 5,159,387 4,680,288 Parks, recreation, and culture 486,274 533,344 329,834 25,763 220,152 Housing and community development 1,018,644 497,300 509,089 757,819 4,111,335 Operating grants and contributions 9,759,068 9,955,275 11,105,930 10,941,780 32,242,999 Capital grants and contributions - - - 1,206,941 2,162,028 Total governmental activities program revenues 22,834,400 24,999,273 24,135,650 26,548,088 52,816,539 Business-Type Activities:

Charges for services:

Transit system 4,728,570 4,056,307 2,999,561 1,376,710 2,201,947 Golf course 2,194,976 2,219,790 2,051,607 2,966,791 2,945,485 Montebello Hilton 7,197,488 6,436,430 4,446,750 2,072,868 5,357,504 Water utility 3,070,381 3,190,460 2,558,986 2,590,903 2,607,898 Hotel2Suites - 7,628,131 8,881,650 8,357,846 12,050,342 Operating grants and contributions 23,014,664 27,205,168 29,238,210 23,232,583 26,342,293 Capital grants and contributions 5,994,885 4,802,972 3,275,168 11,801,668 15,879,414 Total business-type activities program revenues 46,200,964 55,539,258 53,451,932 52,399,369 67,384,883 Primary government program revenues 69,035,364 80,538,531 77,587,582 78,947,457 120,201,422 Net (Expense) Revenue:

Governmental activities: (45,233,444) (45,809,800) (57,554,513) (41,408,308) (23,012,759) Business-type activities: (2,283,287) 1,443,754 (1,794,893) (7,405,700) 18,155,366

Total primary government net (expense) revenue (47,516,731)$ (44,366,046) $ (59,349,406) $ (48,814,008) $ (4,857,393) $ (Continued)
Source: City Financial Statements
(accrual basis of accounting)
Fiscal Year
City of Montebello
Changes in Net Position (Continued)
Last Ten Fiscal Years
177

2012-13 2013-14 2014-15 2015-16 2016-17
General Revenues and Other Changes in Net Assets:

Governmental Activities:

Property taxes, levied for general purposes 15,449,858$ 14,931,613 $ 13,759,217 $ 15,988,925 $ 16,507,389 $ Franchise taxes 1,158,219 1,303,603 1,410,918 1,405,229 1,493,956 Sales tax 11,363,067 11,725,818 12,563,805 13,992,347 13,267,373 Transient occupancy tax 271,153 355,404 357,896 365,290 401,852 Unrestricted intergovernmental revenue 5,299,230 5,513,018 5,746,091 5,373,715 6,099,771 Other revenues 2,239,898 2,036,142 2,897,684 4,401,115 7,062,983 Investment earnings 54,393 49,705 54,391 86,920 172,515 Transfers 602,070 (792,325) (4,948,058) 632,509 (47,976,779) Total governmental activities 36,437,888 35,122,978 31,841,944 42,246,050 (2,970,940) Business-Type Activities:

Investment earnings - 10,383 6,433 13,340 135,411 Transfers (602,070) 792,325 4,948,058 (632,509) 47,976,779 Total business-type activities (602,070) 802,708 4,954,491 (619,169) 48,112,190 Total primary government 35,835,818 35,925,686 36,796,435 41,626,881 45,141,250 Change in Net Position:

Governmental Activities: 4,932,909 212,209 (56,537,964) 3,272,860 (46,255,166) Business-Type Activities: 2,840,337 (1,615,086) 4,377,110 (2,054,545) 51,785,551 Total primary government 7,773,246 $ (1,402,877) $ (52,160,854) $ 1,218,315 $ 5,530,385 $ (Continued)
Source: City Financial Statements
For TOT amount from GL, For Other Revenue amount from CAFR Change in Net position for Ten Years Fiscal Year
City of Montebello
Changes in Net Position (Continued)
Last Ten Fiscal Years
178

2017-18 2018-19 2019-20 2020-21 2021-22
General Revenues and Other Changes in Net Assets:

Governmental Activities:

Property taxes, levied for general purposes 16,961,038$ 18,385,624 $ 18,662,270 $ 21,414,087 $ 6,565,336 $ Franchise taxes 2,141,450 2,224,087 2,199,915 2,316,250 2,300,508 Sales tax 13,118,981 14,031,972 12,817,884 22,270,247 25,378,979 Transient occupancy tax 414,198 421,412 376,424 223,620 340,195 Unrestricted intergovernmental revenue 6,322,299 6,708,639 7,055,984 7,238,433 7,920,682 Other revenues 2,626,065 2,270,785 2,327,446 3,542,120 2,071,400 Investment earnings 665,702 743,557 761,960 459,066 (761,829) Transfers (1,634,476) (529,493) (843,106) (517,833) (6,627) Total governmental activities 40,615,257 44,256,583 43,358,777 56,945,990 43,808,644 Business-Type Activities:

Investment earnings 448,876 461,704 416,053 18,226 77,003 Transfers 1,634,476 529,493 843,106 517,833 6,627 Total business-type activities 2,083,352 991,197 1,259,159 536,059 83,630 Total primary government 42,698,609 45,247,780 44,617,936 57,482,049 43,892,274 Change in Net Position:

Governmental Activities: (4,618,187) (1,553,217) (14,195,734) 15,537,683 20,795,885 Business-Type Activities: (199,935) 2,434,951 (535,734) (6,869,641) 18,238,996 Total primary government (4,818,122) $ 881,734 $ (14,731,468)$ 8,668,042 $ 39,034,881 $ (Concluded)
Source: City Financial Statements
For TOT amount from GL, For Other Revenue amount from CAFR Change in Net position for Ten Years Fiscal Year
City of Montebello
Changes in Net Position (Continued)
Last Ten Fiscal Years
179

2012-13 2013-14 2014-15 2015-16 2016-17
General Fund
Nonspendable 187,730 $ 142,394 $ 64,038 $ 122,474 $ 1,380,282 $ Restricted - - - - 4,666,731 Committed - - - - - Assigned - - - - - Unassigned 7,879,020 8,387,981 8,934,094 9,325,124 7,995,872 Total general fund 8,066,750 $ 8,530,375 $ 8,998,132 $ 9,447,598 $ 14,042,885 $ All Other Governmental Funds:

Nonspendable 2,288,508 $ 2,057,207 $ 10,719,195 $ 10,258,543 $ 8,533,222 $ Restricted
Debt service 6,116,124 7,960,932 3,070,688 3,865,331 13,162,936 Special revenue funds 22,034,631 18,000,779 7,814,447 12,882,023 15,951,357 Capital projects funds 1,445,551 1,090,991 1,093,640 453,480 330,746 Committed - - - - - Assigned - - - - - Unassigned (80,230) - (111,631) (682,268) (318,397) Total all other governmental funds 31,804,584$ 29,109,909 $ 22,586,339 $ 26,777,109 $ 37,659,864 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Fund Balances - Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
180

2017-18 2018-19 2019-20 2020-21 2021-22
General Fund
Nonspendable 1,383,212 $ 823,582 $ 811,985 $ 788,954 $ 4,037,940 $ Restricted 4,666,731 4,827,601 2,408,850 1,921,304 374,594 Committed - - - - 459,491 Assigned - - - - - Unassigned 11,287,858 14,542,796 6,226,719 4,874,887 9,844,229 Total general fund 17,337,801 $ 20,193,979 $ 9,447,554 $ 7,585,145 $ 14,716,254 $ All Other Governmental Funds:

Nonspendable 8,157,472 $ 6,928,947 $ 6,585,577 $ 6,178,711 $ 150,407 $ Restricted
Debt service 366,492 361,922 397,402 377,856 371,706 Special revenue funds 17,557,949 22,634,731 51,427,988 46,952,191 59,718,438 Capital projects funds 122,206 1,195,998 2,255,946 2,557,795 - Committed - - - - - Assigned - - - - - Unassigned (157,153) (165,424) (125,245) (343,608) (262,960) Total all other governmental funds 26,046,966$ 30,956,174 $ 60,541,668 $ 55,722,945 $ 59,977,591 $ Source: City Financial Statements
Fiscal Year
City of Montebello
Fund Balances - Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
181

2012-13 2013-14 2014-15 2015-16 2016-17

REVENUE
Taxes
Property taxes 15,449,858 $ 14,931,613 $ 13,759,217 $ 15,988,925 $ 16,507,389 $ Sales and use taxes 11,363,067 11,725,818 12,563,805 13,992,347 13,267,373 All other taxes 1,522,644 1,777,248 1,900,914 1,908,402 2,047,418 Licences and permits 4,664,830 4,617,905 4,640,365 4,733,752 4,374,761 Fines & forfeitures 1,802,114 1,774,912 1,589,536 1,912,729 2,251,384 Investments income (loss) 54,392 49,705 54,391 86,920 172,515 Intergovernmental 12,496,970 13,115,067 15,461,503 14,853,360 13,330,580 Charges for services 6,656,927 6,410,667 6,054,033 6,611,348 6,382,058 Other Revenue 313,175 3,286,142 2,897,684 2,432,902 2,396,252 Total revenues 54,323,977 57,689,077 58,921,448 62,520,685 60,729,730

EXPENDITURES
General government 2,728,805 6,672,386 8,003,938 7,294,109 6,763,294 Public safety 29,387,879 30,989,230 31,844,365 34,595,741 32,678,899 Public works 6,005,418 6,594,303 6,551,707 6,824,093 6,812,050 Park and recreation 4,310,058 4,412,105 4,026,983 3,889,366 3,658,338 Housing and community development 1,917,976 3,918,011 3,625,767 4,136,607 4,774,847 Capital outlay 3,916,328 3,168,579 4,189,487 1,703,214 2,449,286 Debt services:

Principal retirement 1,590,580 1,664,040 1,849,995 1,305,760 1,757,500 Interest and fiscal charges 1,525,140 1,454,943 1,995,352 1,367,401 2,849,428 Bond issuance costs 1,130,167
Interfund charges (revenue) (1,991,200) (646,790) (641,466) 130,090 Total expenditures 51,382,184 56,882,397 61,440,804 60,474,825 63,003,899 Excess (Deficienc
y) of Revenues
Over (Under) Expenditures 2,941,793 806,680 (2,519,356) 2,045,860 (2,274,169)

OTHER FINANCING SOURCES (USES)
Transfer in 10,703,941 14,503,082 14,596,612 12,225,284 14,476,752 Transer out (10,944,871) (17,039,134) (16,844,670) (11,599,121) (62,456,346) Issuance of debts - - 28,916,923 - 61,065,074 Settlement of unfunded actuarial accrued liability - - - - - Defeasance of debts - - (30,387,860) - - Unspent bond proceeds from Successor Agency - - - - 4,666,731 Other financing uses - - (295,155) - - Other financing sources - - 477,693 1,968,213 - Net other financing sources (uses) (240,930) (2,536,052) (3,536,457) 2,594,376 17,752,211 Change of fund balances
before extraordinary item 2,700,863 (1,729,372) (6,055,813) 4,640,236 15,478,042 Extraordinary gain (loss)
RDA dissolution transactions - (501,678) - - - Total Extraordinary gain (loss) - (501,678) - - - Change in fund balances
after extraordinary item 2,700,863 (2,231,050) (6,055,813) 4,640,236 15 ,478,042 Fund balances - July 1 37,170,471 39,871,334 37,640,284 31,584,471 36,224,707 Fund balances - June 30 39,871,334$ 37,640,284 $ 31,584,471 $ 36,224,707 $ 51,702,749 $

DEBT SERVICE AS A PERCENTAGE
OF NONCAPITAL EXPENDITURES 6.56% 5.81% 6.72% 4.55% 7.61% Fiscal Year
City of Montebello
Change in Fund Balance of Gevernmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
182

2017-18 2018-19 2019-20 2020-21 2021-22

REVENUE
Taxes
Property taxes 16,961,038 $ 18,385,624 $ 18,662,270 $ 21,414,087 $ 21,134,464 $ Sales and use taxes 13,118,981 14,031,972 12,817,884 22,270,247 25,378,979 All other taxes 2,727,410 2,838,572 2,732,920 10,031,642 10,561,385 Licences and permits 4,452,210 6,220,483 4,790,211 5,769,474 7,806,258 Fines & forfeitures 2,185,022 2,165,922 2,186,401 2,312,454 2,512,256 Investments income (loss) 665,702 743,557 761,960 459,066 (672,371) Intergovernmental 15,909,605 15,752,312 18,035,332 12,148,721 19,258,372 Charges for services 6,438,100 6,657,594 6,053,109 6,317,440 8,077,509 Other Revenue 2,626,065 2,270,785 2,327,446 3,288,781 2,119,553 Total revenues 65,084,133 69,066,821 68,367,533 84,011,912 96,176,405

EXPENDITURES
General government 6,791,444 12,175,179 13,768,246 8,853,719 7,699,182 Public safety 32,345,080 30,964,740 33,398,835 33,643,089 35,172,628 Public works 7,592,311 7,356,232 7,667,791 11,526,775 13,532,133 Park and recreation 3,813,599 3,827,559 4,392,532 4,514,120 5,522,232 Housing and community development 3,005,203 2,756,438 2,899,455 2,467,252 2,654,661 Capital outlay 4,749,316 4,934,643 12,785,876 23,341,025 7,663,306 Debt services:

Principal retirement 1,325,340 1,419,180 2,433,971 6,869,371 7,555,842 Interest and fiscal charges 674,338 640,162 912,684 5,280,939 5,614,144 Bond issuance costs 2,422,237 -
Interfund charges (revenue) (231,650) (366,046) (361,160) (536,079) - Total expenditures 60,064,981 63,708,087 80,320,467 95,960,211 85,414,128 Excess (Deficiency) of Revenues
Over (Under) Expenditures 5,019,152 5,358,734 (11,952,934) (11,948,299) 10,762,277

OTHER FINANCING SOURCES (USES)
Transfer in 12,257,329 6,934,943 32,790,225 13,109,570 13,169,877 Transer out (13,898,975) (6,066,053) (33,210,652) (13,627,403) (13,176,504) Issuance of debts - 1,547,962 141,710,928 - - Settlement of unfunded actuarial accrued liability - - (110,508,698) 5,785,000 - Defeasance of debts - - - - - Unspent bond proceeds from Successor Agency - - - - - Other financing uses - - - - - Other financing sources - - - - 44,300 Net other financing sources (uses) (1,641,646) 2,416,852 30,781,803 5,267,167 37,673 Change of fund balances
before extraordinary item 3,377,506 7,775,586 18,828,869 (6,681,132) 10,799,950 Extraordinary gain (loss)
RDA dissolution transactions - - - - - Total Extraordinary gain (loss) - - - - Change in fund balances
after extraordinary item 3,377,506 7 ,775,586 18 ,828,869 (6,681,132) 10,799,950 Fund balances - July 1 (as restated) 40,007,261 43,384,767 51,160,353 69,989,222 63,893,895 Fund balances - June 30 43,384,767$ 51,160,353 $ 69,989,222 $ 63,308,090 $ 74,693,845 $

DEBT SERVICE AS A PERCENTAGE
OF NONCAPITAL EXPENDITURES 3.62% 3.50% 4.96% 16.73% 17.00% Fiscal Year
City of Montebello
Change in Fund Balance of Gevernmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
183

Transient
Fiscal Property Sales and Occupancy Franchise Other Total Year Tax Use Tax Tax Tax Taxes Taxes
2011-12 23,636,827 10,847,400 297,679 1,221,311 1,765,267 37,768,484 2012-13 20,655,816 11,363,067 271,153 1,158,219 93,272.00 33,541,527 2013-14 20,078,684 11,725,818 355,404 1,303,603 118,241 33,581,750 2014-15 19,373,208 12,563,805 357,896 1,410,918 132,100 33,837,927 2015-16 21,224,757 13,992,347 365,290 1,405,229 137,883 37,125,506 2016-17 16,507,389 13,267,373 401,852 1,493,956 151,611 31,822,180 2017-18 16,961,038 13,118,981 414,198 2,141,450 171,762 32,807,430 2018-19 18,385,625 14,031,972 421,412 2,224,088 193,073 35,256,170 2019-20 18,662,270 12,817,884 376,424 2,199,915 156,581 34,213,073 2020-21 21,414,087 22,270,247 223,620 2,316,250 253,339 46,477,543 2021-22 28,764,256 25,378,979 340,195 2,300,508 290,890 57,074,828 Source: City Financial Statements
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
City of Montebello
184

Taxable Taxable
Fiscal Less: Assessed Less: Assessed
Year Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value 2010-11 3,009,280$ 93,206 $ 100,372 $ 3,002,114 $ 1,565,508 $ 139,738 $ 39,759 $ 1,659,537 $ 2011-12 3,081,874 95,765 99,789 3,077,850 1,578,855 139,820 41,746 1,676,929 2012-13 3,166,417 87,265 104,467 3,149,215 1,591,142 135,785 42,457 1,684,470 2013-14 4,938,771 220,911 146,649 5,013,033 1,671,422 133,318 40,811 1,763,929 2014-15 3,420,628 99,344 110,362 3,409,610 1,701,294 129,735 41,886 1,789,143 2015-16 3,317,644 82,016 113,073 3,286,587 1,168,508 129,094 44,039 1,253,564 2016-17 3,693,850 82,228 99,747 3,676,331 1,734,850 141,080 26,411 1,849,518 2017-18 3,845,241 76,621 103,168 3,818,695 1,789,082 144,402 42,088 1,891,396 2018-19 4,033,298 83,389 63,264 4,053,424 1,878,833 155,004 33,832 2,000,005 2019-20 4,183,599 85,986 66,377 4,203,208 1,952,461 171,050 33,065 2,090,446 2020-21 4,529,900 90,240 118,765 4,501,375 2,092,563 181,836 62,233 2,212,166 2021-22 4,691,478 90,364 120,075 4,661,767 2,248,588 177,313 55,269 2,370,632 Source: MuniServices an Avenu Insights & Analytics Company Source: Los Angeles County Assessor Data
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
City Redevelopment Agency
City of Montebello
(rate per $1,000 of assessed value)
185

2012-13 2013-14 2014-15 2015-16 2016-17
City Direct Rate:

City basic rate 1.00000 1.00000 1.00000 1.00000 1.00000 Retirement 0.19788 0.19788 0.19788 0.19788 0.19788
Total City Direct Rate 1.19788 1.19788 1.19788 1.19788 1.19788 Overlapping Rates:

L.A. County General 0.00000 0.00000 0.00000 0.00000 0.00000 Montebello USD 0.09630 0.09457 0.08750 0.08715 0.14705
L.A. County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Community College 0.03756 0.04454 0.04017 0.03575 0.03596 Totals 1.33524 1.34049 1.32905 1.32428 1.38439
Source: Los Angeles County Assessor Data, Avenu Insights & Analytics Source: City of Montebello, ACFR Fiscal Year Ended June 30, 2021 TRA 6-323 IS REPRESENTED FOR THIS REPORT
Fiscal Year
(rate per $100 of taxable value)
City of Montebello
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
186

2017-18 2018-19 2019-20 2020-21 2021-22
City Direct Rate:

City basic rate 1.00000 1.00000 1.00000 1.00000 1.00000 Retirement 0.197875 0.197875 0.197875 0.19788 0.19788
Total City Direct Rate 1.19788 1.19788 1.19788 1.19788 1.19788 Overlapping Rates:

L.A. County General 0.00000 0.00000 0.00000 0.00000 0.00000 Montebello USD 0.13514 0.13921 0.09306 0.09706 0.09031
L.A. County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 Community College 0.04599 0.04621 0.02717 0.04016 0.04376 Totals 1.38251 1.38680 1.32161 1.33860 1.33545
Source: Los Angeles County Assessor Data, Avenu Insights & Analytics Source: City of Montebello, ACFR Fiscal Year Ended June 30, 2021 TRA 6-323 IS REPRESENTED FOR THIS REPORT
Fiscal Year
City of Montebello
Direct and Overlapping Property Tax Rates (Continued)
Last Ten Fiscal Years
(rate per $100 of taxable value)
187

Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Metro Heights Montebello LLC 199,193,858 $ 1 2.93% 0.00% Montebello Town Center 197,535,451 2 2.90% 189,070,962 1 3.90% Bimbo Bakeries USA Inc 84,085,787 3 1.23% 65,183,503 3 1.34% Brixmor Montebello Plaza LP 79,404,434 4 1.17% 63,388,910 4 1.31% KK 3A CORP 51,122,306 5 0.75% 32,557,977 10 0.67% Somerset Apts LLC 48,622,876 6 0.71% 41,901,806 6 0.86% Comref So CA Industrial 46,718,982 7 0.69%
M and M At Montebello LLC 41,650,000 8 0.61%
Rreef America Reit II Corp 41,240,079 9 0.61% 35,539,454 9 0.73% Macys West Stores Inc. 37,522,886 10 0.55% 36,764,459 8 0.76% Plains Exploration and Production Company 122,557,911 2 2.53% Southern California Gas Company 53,261,916 5 1.10% Excel Realty Partners LP
KIR Montebello LP 36,878,698 7 0.76%
TOTAL TOP 10 TAXPAYERS 827,096,659 12.15% 677,105,596 13.95% TOTAL CITY TAXABLE VALUE 6,809,731,075$ 4,852,655,387 $ Source: HDL
2012-13
City of Montebello
Principal Property Tax Payers
Current Fiscal Year and Nine Fiscal Years Ago
2021-22
188

Fiscal Total Tax Collections in
Year Levy Amount % of Levy Subsequent Years Amount % of Levy 2012-13 6,975,325$ 11,293,837 $ 161.91% - $ 11,293,837$ 161.91% 2013-14 7,279,631 7,275,179 99.94% 338,473 7,613,652 104.59% 2014-15 7,504,080 7,092,120 94.51% 330,553 7,422,673 98.92% 2015-16 7,616,230 10,352,514 135.93% 385,447 10,737,961 140.99% 2016-17 7,923,442 10,685,828 134.86% 579,837 11,265,665 142.18% 2017-18 8,159,530 11,032,559 135.21% 659,322 11,691,881 143.29% 2018-19 8,638,639 11,032,570 127.71% 439,208 11,471,778 132.80% 2019-20 9,133,355 12,528,093 137.17% 348,671 12,876,764 140.99% 2020-21 9,446,262 13,318,638 140.99% 352,908 13,671,546 144.73% 2021-22 9,967,851 13,653,488 136.98% 909,913 14,563,401 146.10% Source: Los Angeles County Auditor - AF91 Report and City Remittance Advice Summary http://auditor.lacounty.gov/property-tax-report-central/ City of Montebello
Property Tax Levies and Collections
Note (1) Negative number not included
Last Ten Fiscal Years
Collected Within the
Fiscal Year of the Levy Total Collections to Date
189

Certificates Capitalized Unamortized Total
Fiscal of Lease Sales Tax Pension Finance Notes Bond Discount/ Governmental Year Participation Revenue Revenue Obligation Purchase Payable Premium Activities 2012-13 17,447,900$ 14,800,000 $ - $ - $ - $ 5,624,106$ (96,673) $ 37,775,333 $ 2013-14 16,502,860 14,370,000 - - - 5,335,106 (88,143) 36,119,823 2014-15 - 25,728,200 - - 422,278 5,334,974 2,035,323 33,520,775 2015-16 - 24,738,440 - - 452,197 5,018,974 1,890,503 32,100,114 2016-17 - 78,171,940 - - 972,060 4,387,106 7,950,757 91,481,863 2017-18 - 10,409,600 (1) - - 902,071 4,042,886 923,106 16,277,662 2018-19 - 9,356,420 - - 2,083,910 3,702,914 820,646 15,963,890 2019-20 - 8,261,780 24,945,000 112,506,552 1,993,247 3,314,900 4,071,461 155,092,940 2020-21 - 7,111,860 24,115,000 108,678,727 1,402,552 7,802,779 3,787,104 153,787,128 2021-22 - 5,911,660 23,245,000 104,872,900 783,658 6,741,933 3,502,747 145,947,004 Source: City Financial Statements
Note: (1) In 17-18 Home2suites bond ($ 54.8 million) and Hilton hotel bond ($11.9 miilion ) were transferred from Governmental Activities to Business-type Activities
Governmental Activities
City of Montebello
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
190

Percentage Total
Certificates Capitalized Unamortized Total of Debt
Fiscal of Lease Pension Finance Notes Discount/ Total Business Primary Personal per Year Participation Revenue Obligation Purchase Payable Premium Activities Government Income Capita 2012-13 4,407,100$ 843,294 $ 5,250,394 $ 43,025,727 $ 3.24% 685 2013-14 4,197,140 1,668,734 5,865,874 41,985,697 3.26% 661 2014-15 3,771,800 214,691 1,333,531 95,735 5,415,757 38,936,532 2.95% 613 2015-16 3,546,560 176,037 1,007,244 88,940 4,818,781 36,918,895 2.78% 578 2016-17 3,313,060 457,321 686,116 82,144 4,538,641 96,020,504 7.26% 1,502 2017-18 69,840,400 (1) 414,495 484,434 6,613,454 77,352,782 93,630,444 6.96% 1,456 2018-19 69,305,400 820,202 919,051 6,357,464 77,402,117 93,366,007 6.60% 1,491 2019-20 88,987,220 40,918,448 423,055 527,707 6,881,076 137,737,506 292,830,446 20.13% 4,608 2020-21 65,188,140 39,526,274 240,200 1,098,527 6,572,783 112,625,924 266,413,052 15.04% 4,235 2021-22 63,768,340 38,142,101 49,867 863,018 6,264,486 109,087,812 255,034,816 12.69% 4,102 Source: City Financial Statements
Note: (1) In 17-18 Home2suites bond ($ 54.8 million) and Hilton hotel bond ($11.9 miilion ) were transferred from Governmental Activities to Business-type Activities
Business Activities
City of Montebello
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
191

Tax
Fiscal Certificates of Allocation Lease Sales Tax Pension Total Primary Total Debt Year Participation Bonds Revenue Revenue Obligation Other Government Per Capita 2012-13 17,447,900$ - $ 14,800,000$ - $ - $ - $ 32,247,900$ 513 $ 2013-14 16,502,860 - 14,370,000 - - - 30,872,860 486 2014-15 - - 25,728,200 - - - 25,728,200 405 2015-16 - - 24,738,440 - - - 24,738,440 387 2016-17 - - 78,171,940 - - - 78,171,940 1,223 2017-18 - - 10,409,600 - - - 10,409,600 162 2018-19 - - 9,356,420 - - - 9,356,420 149 2019-20 - - 8,261,780 24,945,000 112,506,552 - 145,713,332 2,293 2020-21 - - 7,111,860 24,115,000 108,678,727 - 139,905,587 2,224 2021-22 - - 5,911,660 23,245,000 104,872,900 - 134,029,560 2,156 Source: City Financial Statements
Ratios of Outstanding Debt by Type (Continued)
Last Ten Fiscal Years
Governmental Activities
City of Montebello
192

Tax Unamortized Percent of
Fiscal Certificates of Allocation Sales Tax Pension Bond Discount/ Assessed Per Year Participation Bonds Revenue Revenue Obligation Premium Total Value(1) Capita 2012-13 17,448$ - 14,800 $ - $ - $ (97) $ 32,151 $ 0.65% 511 $ 2013-14 16,503 - 14,370 - - (88) 30,785 0.62% 486 2014-15 - - 25,728 - - 2,035 27,763 0.54% 405 2015-16 - - 24,738 - - 1891 26,629 0.50% 417 2016-17 - - 78,172 - - 795 78,967 1.43% 1,235 2017-18 - - 10,410 - - 923 11,333 0.20% 176 2018-19 - - 9,356 - - 82 9,438 0.16% 151 2019-20 - - 8,262 24,945 112,507 4,071 149,784 2.34% 2,357 2020-21 - - 7,112 24,115 108,679 3,787 143,693 2.14% 2,284 2021-22 - - 5,912 23,245 104,873 3,504 137,534 1.95% 2,212 (1) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Source: City Finance Department
Outstanding General Bonded Debt
City of Montebello
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Dollar amounts in thousands, except per capita)
193

2021-22 Assessed Valuation: $7,054,531,080
City's
Total Share of
Outstanding Percentage Overlapping
Debt 6/30/22 Applicable (1) Debt 6/30/22
20,175,000$ 0.208% 41,964 $
4,146,515,000 0.705% 29,232,931
99,377,736 0.004% 3,975
10,770,060,000 0.001% 107,701
155,962,323 36.14% 56,369,462
85,756,034$
Less: Los Angeles Unified School District General Obligation Bonds,Election of 2005 Series J (2010) Qualified School Construction Bonds: Amount accumulated in Interest and Sinking Fund and Set Aside for Repayment 2,253$
TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT 85,753,781$ DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
2,698,357,105$ 0.398% 10,739,461 $
Los Angeles County Superintendent of Schools Certificates of Participation 3,972,227 0.398% 15,809 1,517,904 9.085% 137,902
1,553,760 0.702% 10,907
120,710,000 0.001% 1,207
5,295,000 36.143% 1,913,772
29,156,660 100.000% 29,156,660
City of Montebello Capital Lease Obligations 783,656 100.000% 783,656 104,872,900 100.000% 104,872,900
147,632,275
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 13,668,389$ 100% 13,668,389 $ (2) 134,813,216$
TOTAL NET OVERLAPPING DEBT 112,241,227$
NET COMBINED TOTAL DEBT 247,054,443$
1) The percentage of overlappng 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 accreted value
Ratios to 2021-22 Assessed Valuation:

Total Net Overlapping Tax and Assessment Debt
Total Net Direct Debt
Net Combined Total Debt
Ratios to Redevelopment Successor Agency Incremental Valuation ($ 2,259,537,762):

Total Overlapping Tax Increment D
e 0.88%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.

TOTAL DIRECT DEBT
Los Angeles County Sanitation District No. 2 Authority
Los Angeles County Sanitation District No. 15 Authority Los Angeles Unified School District Certificates of Participation Montebello Unified School District Certificates of Participation City of Montebello General Fund Obligation
City of Montebello Pension Obligation Bonds

1.22%

1.91%

3.50%

0.60%
City of Montebello
Direct and Overlapping Debt
El Rancho Unified School District
Los Angeles Unified School District
OVERLAPPING TAX AND ASSESSMENT DEBT:

Metropolitan Water District
Los Angeles Community College District
Montebello Unified School District

TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT D
E
Los Angeles County General Fund Obligation

TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUN
194

2012-13 2013-14 2014-15 2015-16 2016-17
Assessed valuation 19,404,069,772 $ 19,864,600,740 $ 20,609,967,972 $ 21,223,501,036 $ 22,103,394,800 $ Conversion Percentage 25.00% 25.00% 25.00% 25.00% 25.00% Adjusted assessed valuation 4,851,017,443 4,966,150,185 5,152,491,993 5,305,875,259 5,525,848,700 Debt limit percentage 15.00% 15.00% 15.00% 15.00% 15.00% Total net debt applicable to limit 727,652,616 744,922,528 772,873,799 795,881,289 828,877,305 Legal debt margin 727,652,616 744,922,528 772,873,799 795,881,289 828,877,305 2017-18 2018-19 2019-20 2020-21 2021-22
Assessed valuation 22,840,364,556 24,213,713,652 25,572,386,248 26,854,163,688 28,218,124,320 Conversion Percentage 25.00% 25.00% 25.00% 25.00% 25.00% Adjusted assessed valuation 5,710,091,139 6,053,428,413 6,393,096,562 6,713,540,922 7,054,531,080 Debt limit percentage 15.00% 15.00% 15.00% 15.00% 15.00% Total net debt applicable to limit 856,513,671 908,014,262 958,964,484 1,007,031,138 1,058,179,662 Legal debt margin 856,513,671 $ 908,014,262 $ 958,964,484 $ 1,007,031,138 $ 1,058,179,662 $ Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel).The computations shown above reflect a conversion of assessed valuation data for each fiscal year that was in effect at the time that the legal debt margin was enacted by the State of California for local governmenets located with in the state.

Source: Los Angeles County Assessor and HdL, Coren & Cone City of Montebello
Legal Debt Margin Information
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Last Ten Fiscal Years
Fiscal Year
Fiscal Year
195

Fiscal Gross Less Operating Net Available
Year Revenue Expenses Revenue Principal Interest Total Coverage

2012-13 2,389,101$ (2,826,082) $ (436,981) $ 201,420 $ 200,594 $ 402,014 $ -108.70% 2013-14 2,385,213 (2,748,196) (362,983) 209,960 175,667 385,627 -94.13% 2014-15 2,312,095 (2,992,640) (680,545) 256,420 67,650 324,070 -210.00% 2015-16 2,294,518 (2,753,607) (459,089) 225,240 134,526 359,766 -127.61% 2016-17 2,091,410 (2,535,564) (444,154) 233,500 116,281 349,781 -126.98% 2017-18 2,194,976 (3,103,858) (908,882) 257,660 110,341 368,001 -246.98% 2018-19 2,219,791 (2,711,992) (492,201) 276,820 102,463 379,283 -129.77% 2019-20 2,051,607 (2,383,223) (331,615) 285,360 92,742 378,102 -87.71% 2020-21 2,964,027 (2,779,657) 184,370 300,080 82,176 382,256 48.23% 2021-22 2,945,484 (2,663,662) 281,822 309,800 70,776 380,576 74.05% Source: City Finance Department
Last Ten Fiscal Years
Golf Revenue Bonds
Debt Service
City of Montebello
Pledged-Revenue Bond Coverage
196

Calendar Personal Income Per Capita Unemployment
Year Population (in millions) Personal Income Rate
2012-13 63,184 1,328 21,013 10.40% 2013-14 63,527 1,288 20,269 8.50% 2014-15 63,555 1,321 20,783 7.10% 2015-16 63,924 1,329 20,784 5.70% 2016-17 63,917 1,323 20,693 4.50% 2017-18 64,327 1,346 20,916 4.30% 2018-19 64,247 1,415 22,027 5.00%
2019-20 63,544 1,455 22,895 4.80%
2020-21 62,914 1,771 28,143 13.93%
2021-22 62,180 2,010 32,326 4.30%
Source: HdL, Coren & Cone
City of Montebello
Demographic and Economic Statistics
Last Ten Calendar Years
197

Employer Employees
Percent of Total
Employment * Employees
Percent of Total
Employment *
Montebello Unified School District* 1,407 4.99% Beverly Hospital 961 3.41%
City of Montebello 482 1.71%
Bimbo Bakery 315 1.12%
Macy's Department Store 308 1.09% Rio Hondo Convalescent Hospital 218 0.77% JCPenney Department Store 215 0.76% 343 3.80% Monarch Litho Inc. 171 0.61% 199 2.20% Wilbur Curtis CO 149 0.53% 265 2.93% R+L Carriers 153 0.54%
Katzkin Leather, Inc 400 4.43%
Costco Wholesale 237 2.62%
Forever 21 155 1.72%
B J's Restaurant & Brewhouse 145 1.61% All Access Apparel Corp. 131 1.45%
Lifeline Ambulance 130 1.44%
Minson Corporation 120 1.33%
Total 10 Top Employers 4,379 15.53% 2,125 23.53% Total City Employment (1) 28,200 9,030 Results based on direct correspondence with city’s local businesses. *Includes ONLY schools within Montebello city limits.
** Costco now located in the City of Monterey Park, since 2018. 2012-13
Source: MuniServices, LLC / Avenu Insights & Analytics
(1) Total City Labor Force provided by EDD Labor Force Data. 2021-22
City of Montebello
Principal Employers
Current Fiscal Year and Nine Years Ago
198

Function 2012-13** 2013-14** 2014-15 2015-16 2016-17
General Government 24 23 23
Public Safety 157 151 162
Public Works 12 13 13
Parks and Recreation 35 33 33
Community Development 14 12 11
Transit 159 155 154
Totals 401 387 396
Function 2017-18 2018-19 2019-20 2020-21 2021-22
General Government 18 24 37 38 43
Public Safety 142 153 163 168 175
Public Works 12 11 13 13 23
Parks and Recreation 28 30 29 22 21
Community Development 9 9 11 16 21
Transit 169 164 165 174 199
Totals 378 391 418 431 482
Source: City Finance Department
**Reliable data is unavailable
City of Montebello
Full-Time Employees by Function
Last Ten Fiscal Years
Fiscal Year
Fiscal Year
199

Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police:

Arrests 2,093 1,896 1,642 2,005 2,037 1,648 1,466 1,360 1,179 1,347 Traffic violations 2,773 2,682 2,505 1,418 2,191 2,096 2,446 2,864 4,029 5,894 Parking violations 20,448 18,950 16,446 16,767 17,507 17,346 15,037 13,617 8,950 10,783 Fire:

Number of calls answered 4,800 5,100 5,686 6,051 6,494 6,661 6,509 6,071 6,010 6,724 Inspections conducted 625 988 1,248 1,094 809 1,271 1,237 900 155 875 Public Works:

Street resurfacing (miles) 0.51 2.28 1.42 5.96 0.47 3.20 0.76 1.03 0.16 2.61 Sidewalk repairs (sq ft) 11,100 35,435 29,632 7,942 3,600 15,042 12,580 11,793 22,118 9,858 Potholes repaired 3,325 3,876 3,774 4,009 7,163 7,317 7,315 8,943 5,232 Storm drains cleaned 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A Parks and Recreation:

Number of recreation classes 137 153 160 192 214 268 284 214 10 226 Number of facility rentals 708 2,156 3,180 3,438 3,428 3,589 3,589 3,437 0 1,083 Source: City Finance Department
Fiscal Year
City of Montebello
Operating Indicators by Function
Last Ten Calendar Years
200

Function 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Police:

Police Stations 111111111 1
Fire:

Fire Stations 333333333 3
Public Works:

Street (miles) 125 125 125 125 125 125 125 125 125 125
Street Lights 3,682 3,682 3,682 3,682 3,683 4,718 4,725 4,725 4,725 4,725 Traffic Signals 81 81 81 79 79 79 80 80 80 80
Parks and Recreation:

Parks 7777777 1 2 * 1 2 * 1 2 *
Community Centers - 443333 6 * * 6 * * 6 * *
Source: City Finance Department
*Includes "mini parks" which were not counted in previous years

INFORMATION PROVIDED BY DEPARTMENTS
Fiscal Year
City of Montebello
Capital Asset Statistics by Function
Last Ten Fiscal Years
**Includes Grant Rea Recreation Center and Holifield Community Center which were not counted in previous years and Recreation Main Office which closed in 2015 and reopened in 2020 201

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202

ITEM # 13

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: René Bobadilla, City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: APPROVAL OF AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT NO. 3777 BETWEEN THE CITY OF MONTEBELLO AND

RANGWALA ASSOCIATES FOR THE COMPREHENSIVE GENERAL

PLAN UPDATE AND BICYCLE MASTER PLAN

DATE: April 10, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Approve Amendment No. 2 to Professional Services Agreement No. 3777 between the City of Montebello and Rangwala Associates to provide consulting services related to the comprehensive General Plan Update and Bicycle Master Plan; and

2. Authorize the City Manager and/or his designee to execute Amendment No. 2 to Professional Services Agreement between the City and Rangwala Associates for related ancillary services to prepare a comprehensive Bicycle Master Plan and related documents on behalf of the City; and

3. Amend the Fiscal Year 2022-23 budget by increasing appropriations by $260,000 in Account No. 100-50-590-6040.95 (General Fund, Community Development, Long Range Planning, Other Professional Services); and

4. Take such additional, related action that may be desirable.

FISCAL IMPACT:

On May 28, 2020, a Professional Services Agreement between the City and Rangwala Associates was approved for a not-to-exceed-amount-of $1,050,000 to update the City’s General Plan and establish the Montebello Downtown Specific Plan. As originally contemplated, these expenses would be spread out over the 2020-21 and 2021-22 fiscal years. In addition, the total cost would be offset by non-General Fund grant awards received from the State's Housing and Community Development Department.

CITY COUNCIL AGENDA REPORT - MEETING OF APRIL 10, 2023

On August 31, 2020, as a result of its certification of the 5 th Cycle Housing Element, the City was awarded approximately $310,000 in Senate Bill 2 Planning Grant funding. In addition, the City received $300,000 in Local Early Action Planning (LEAP) grant funding.

Therefore, the amount of non-General Fund grant sources totaled $610,000. The remaining $440,000 contract cost has been covered by the General Fund (Account No. 100-50-590-6040.95, General Fund, Community Development Long Range Planning).

The recommended budget amendment of $260,000 would include appropriations to: 1) fund development of a Bicycle Master Plan; and 2) increase the original contract budget to cover unexpected expenditures related to recent updates to State housing law impacting the required analysis for the 6 th Cycle Housing Element. The proposed Amendment No. 2 to Professional Services Agreement No. 3777 would expand the initial scope of work (visioning, outreach, environmental analysis, document preparation, including certification of the 6th Cycle Housing Element) and increase the not-to-exceed amount from $1,050,000 to $1,310,000 (an increase of $260,000). This amendment will update the original scope of work to include deliverables such as the preparation of a Bicycle Master Plan and offset expenditures used to achieve compliance with new State laws established by the California Department of Housing and Community Development in connection with the City’s certified 6th Cycle Housing Element (2021-2029).

The cost associated with the proposal for the City’s comprehensive Bicycle Master Plan (Please see Attachment D) is $139,195. In addition, the proposed budget amendment will be used to cover the above-referenced unexpected expenditures totaling $120,805 (Please see Attachment E). Therefore, the total budget amendment related to this request is $260,000.

BACKGROUND/DISCUSSION:

On May 27, 2020, the City Council approved the Professional Services Agreement (PSA) between the City of Montebello and Rangwala Associates, who was selected, through a competitive proposal and bidding process, to prepare a comprehensive update to the City’s General Plan and related environmental analysis in accordance with the California Environmental Quality Act (“CEQA”). The fee proposal associated with the PSA included an initial not to exceed amount of $1,050,000 which was to be expended over two fiscal years (2020-21 and 2021-22). A portion of the cost has been off-set through non-General Fund grant revenue awarded to the City.

The original PSA was approved for two (2) years beginning June 1, 2020 through June 30, 2022. However, due to the COVID-19 Pandemic, the project kick-off was delayed to October 2020. Therefore, the anticipated timeframe of two (2) years as set forth in the original PSA was impacted and needed to be extended. As a result, in collaboration with the City Attorney’s office, an extension was completed to extend the term of the original PSA for an additional two (2) fiscal years to accommodate the adjusted project schedule. (Attachment “B” hereto). The extension outlined in Amendment No. 1 establishes a new expiration date of May 27, 2024. There were no other changes made to the PSA during this process.

CITY COUNCIL AGENDA REPORT - MEETING OF APRIL 10, 2023

On October 26, 2022, staff provided an update to the City Council related to the Bicycle Master Plan. During this meeting, staff received direction to begin the process of preparing and conducting community outreach to establish a comprehensive Bicycle Master Plan for the City of Montebello. Ultimately, the Bicycle Master Plan will be presented to the Planning Commission for recommendation and City Council for final consideration.

On March 1, 2023, staff provided the City Council with an update during a special study session regarding the General Plan Update and Downtown Specific Plan. During this special study session, the City Council directed staff to initiate the environmental analysis as required by CEQA.

ENVIRONMENTAL:

In accordance with CEQA, the proposed Amendment No. 2 to Professional Services Agreement No. 3777 is not considered a project per the CEQA definition of a project since the activity is statutorily exempt per CEQA Section 15061(b)(3) (Common Sense Exemption). CEQA only applies to projects which have the potential for causing a significant effect on the environment. No physical changes will occur as a result of the proposed budget amendment for the City’s General Plan Update/Downtown Specific Plan and Bicycle Master Plan

ANALYSIS:

As required by State Housing Law, the City was required to have a certified 6 th Cycle Housing Element (2021- 2029) by February 2022 or be subjected to potential penalties which included, among other things, losing the ability to enforce local zoning laws and potentially being unable to collect building permit fees. In an effort to meet this deadline and avoid potential penalties, additional resources were allocated to achieve compliance and attain State certification for the 6th Cycle Housing Element. On October 5, 2021, the City’s draft 6th Cycle Housing Element was originally submitted to HCD for review. Based on comments received from HCD in December 2021, the draft Housing Element was revised and resubmitted on January 19, 2022. As a result of a second round of comments received by the City from HCD on March 16, 2022, staff focused all efforts in effectively addressing these comments which related to affirmatively furthering fair housing in accordance with the California Government Code as well as revision related to zoning, land use controls, environmental constraints, infrastructure, nonvacant sites, and realistic capacity. Prior to the City’s third submittal to HCD, and adoption by the City Council on June 22, 2022, HCD approved and certified the City’s current Housing Element pursuant to a letter issued by HCD on July 11, 2022. As a result, the department exhausted more funds than anticipated in this effort and will need to replenish those funds to adequately complete the final phase of the General Plan Update/Downtown Specific Plan, as well as initiate the analysis and preparation of a Bicycle Master Plan.

Therefore, Staff is recommending a second amendment (“Amendment No. 2") and requesting an increase of the not-to-exceed amount of existing Agreement No. 3777 by

CITY COUNCIL AGENDA REPORT - MEETING OF APRIL 10, 2023

$260,000.00, raising the total contract amount to $1,310,000, to assist with the final phase of the General Plan Update, and expand the scope of work to include a Bicycle Master Plan. As the city prepares to commence the environmental process, this contract amendment is essential to ensure successful completion and assist with establishing a comprehensive City of Montebello Bicycle Master Plan.

Amendment No. 2

The proposed Amendment No. 2 will include appropriations to fund and complete the final phase of the General Plan Update/Downtown Montebello Specific Plan and expand the scope of work to include a Bicycle Master Plan. Below is a breakdown of the pending items needed to finalize these efforts.

General Plan Update - Pending Tasks

1. Environmental Impact Report
a. Analysis
b. Scoping meeting
c. Implementation
d. Adoption/Certification

2. Bicycle Master Plan – Additional Scope of Work
a. Community Outreach
b. Visioning
c. Opportunities
d. Preparation of Concept Graphics
e. Identify Funding Sources

SUMMARY:

Staff recommends approval of Amendment No. 2 to Professional Services Agreement No. 3777 between the City of Montebello and Rangwala Associates to provide consulting services related to the comprehensive General Plan Update and Bicycle Master Plan and Amend the Fiscal Year 2022-23 budget by increasing appropriations by $260,000 in Account No. 100-50-590-6040.95 (General Fund, Communit Development, Long Range Planning, Other Professional Services).

ATTACHMENT(S)

1. Attachment A - Amendment No. 2 to Agreement No. 3777 with Rangwala Associates

2. Attachment B - Amendment No. 1 to Agreement No. 3777 with Rangwala Associates

3. Attachment C - Agreement No. 3777 with Rangwala Associates

4. Attachment D - Montebello Bike Master Plan Scope

CITY COUNCIL AGENDA REPORT - MEETING OF APRIL 10, 2023

5. Attachment E - Proposal for Bike Master Plan and Budget Adjustment for GP DSP and Hsg Element

NEXT STEPS:

N/A

CITY OF MONTEBELLO
AMENDMENT NO. 2
TO PROFESSIONAL SERVICES AGREEMENT NO. 3777
WITH RANGWALA ASSOCIATES FOR THE PREPARATION OF THE CITY’S

COMPREHENSIVE GENERAL PLAN UPDATE TO INCLUDE A BICYCLE MASTER PLAN
This Amendment No. 2 to Professional Services Agreement No. 3777 (“Amendment No. 2”), is made and entered into this 10 th day of April 2023 (“Effective Date”) by and between the City of Montebello, a California municipal corporation, (hereinafter, the “City”) and Rangwala Associates (hereinafter referred to as the “Consultant”). The City and the Consultant are sometimes hereinafter individually referred to as a "Party" and jointly as the "Parties".

RECITALS
WHEREAS, the City and the Consultant entered into Professional Services Agreement No. 3777 by and between the City of Montebello and Rangwala Associates, dated May 28, 2020 (the "Agreement"), for preparation of a General Plan update for the City of Montebello as further described in the Agreement; and WHEREAS, Section 32 ("Entire Agreement") of the Agreement allows for amendments to the Agreement by a writing executed by the Parties; and WHEREAS, the Cty and Consultant amended the Agreement No. 3777 on May 28, 2022 to extend the term of the Agreement with no other changes for an additional two (2) fiscal years, set to expire on May 27, 2024 (Amendment No. 1); and WHEREAS, on October 26, 2022, staff provided an update to the City Council related to the Bicycle Master Plan and staff was directed to expand the scope of the General Plan to prepare a Bicycle Master Plan specific to Montebello; and WHEREAS, the Parties each being mutually satisfied with the other's performance thereof, desire to amend the Agreement once more to revise the Scope of Work (SOW) for additional services (“Revised Scope of Work”); and
WHEREAS, based on the amendment to the SOW, the City and Consultant desire to amend the Agreement No. 3777 increasing the compensation by $260,000 for a not to exceed total of $1,310,000; and
WHEREAS, for the reasons set forth herein, the City and Consultant desire to enter into this Amendment No. 2, as set forth below.

NOW THEREFORE, based upon the foregoing recitals, which the Parties agree are true and correct, and for good and adequate consideration, the receipt and adequacy

AMENDMENT NO. 2 TO AGREEMENT NO. 3777

of which is expressly acknowledged by the Parties, the Parties agree to amend the Agreement as follows:

AMENDMENT
SECTION 1. COMPENSATION. The compensation to be paid by the City to Consultant for the services provided hereby shall be amended as follows:
“In no event shall the total compensation and costs payable to Consultant under Amendment No. 2 exceed ($260,000) for a total not-to-exceed project amount of ($1,310,000), unless specifically approved in advance, in writing, by City. The Consultant shall keep tally of the cost for the work ordered by the City. The Consultant shall not accept work order from the City if the cost for the work will exceed the amount indicated above unless otherwise agreed to by the parties in writing.” SECTION 2. AMENDMENT TO THE SCOPE OF WORK. Through this Amendment No. 2, the Parties hereto agree to replace the Scope of Work previously made part of the Agreement with a new SOW outlined in Attachment “C” (“Revised Scope of Work”), attached hereto and incorporated herein by this reference.

SECTION 3. INCORPORATION OF REMAINING TERMS. Other than as expressly modified in this Amendment No. 2 with respect to the Agreement, all remaining terms, conditions, including the provisions of the Agreement and the term extension agreed to in Amendment No. 1, shall remain in full force and effect, and is incorporated fully herein by this reference.

IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 to Agreement No. 3777 to include a Bicycle Master Plan as of the Effective Date identified above.
[SIGNATURES ON THE FOLLOWING PAGES]

AMENDMENT NO. 2 TO AGREEMENT NO. 3777

(“CITY”) (“CONSULTANT”)

CITY OF MONTEBELLO RANGWALA ASSOCIATES
René Bobadilla, City Manager Kaizer Rangwala, Principal ATTEST:

Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City
Attorney

FILENAME: H:\28\28512 - MONTEBELLO BIKE MASTER PLAN\ADMIN\P\04_WORKINGDOCS_QAQC\MONTEBELLO BMP_SCOPE OF WORK.DOCX November 2, 2022 Project #24761

Kaizer Rangwala, AICP, CEcd, CNU-A
Rangwala Associates
6325 Jackie Avenue
Woodland Hills, CA 91367
RE: Montebello General Plan Update – Montebello Bicycle Master Plan Contract Amendment Dear Kaizer:

Attached is a contract amendment by Kittelson & Associates for the preparation of a citywide Bicycle Master Plan for the City of Montebello. Part “A” identifies our proposed services for the project. This scope was developed based on our discussions with City staff, our ongoing work in Montebello, and our familiarity with the City.

We estimate the cost of our work effort for this amendment to be $139,195. We propose to conduct this work with all prior contractual terms and invoicing protocols applying. The original Kittelson contract for the project was for $87,705. Therefore, with this amendment, the total Kittelson budget will be $226,900.

I will continue to serve as the Project Manager, with Michael Sahimi serving as the lead for the Bicycle Master Plan. Any questions of a technical or contractual nature can be directed to either of us.

Please review this proposal at your earliest convenience and provide us with a signed copy to get started.

Thank you for the opportunity to propose on this project.

Sincerely,
Kittelson & Associates, Inc.

Montebello Bicycle Master Plan
28512
Tim Erney, AICP, PTP, CTP Michael Sahimi, AICP
Senior Principal Planner Senior Planner
750 The City Drive, Suite 410
Orange, CA 92868
P 714.468.1997 F 503.273.8169

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PART A - SCOPE OF WORK
TASK 1 EXISTING AND BASELINE CONDITIONS
Task 1.1 Review of Existing Conditions and Plans
To reflect the work efforts and analysis that have been conducted to date, Kittelson will review previous and ongoing studies and will summarize documented existing bicycling conditions, planned bicycle network changes, bicycle activity, bicycle crash history, existing programs/policies, and proposed policies or recommendations related to bicycle infrastructure and parking. Given that the Project is intended to guide long-term bicycle improvements in Montebello, proposed facilities in these plans and studies will be documented. This will include a review of information prepared for Kittelson -involved projects such as the City’s General Plan Update, Downtown Specific Plan, and Safe Travel Plan. As part of the existing conditions analysis, Kittelson will prepa re a bicyclist Level of Stress (LTS) analysis for the city, utilizing available GIS data and a Google Earth review to understand the perceived levels of comfort and stress bicyclists currently experience throughout the city.

Task 1.2 Bicycling Activity Levels
Kittelson will collect and review weekday morning, weekday evening, and Sunday morning bike counts at up to 12 intersections in Montebello. The data will be summarized to identify a relative level of bicycling activity throughout the City. Kittelson wi ll also review larger data sources such as U.S. Census data and the California Household Travel Survey to better understand commute and non-commute mode share in the city.

Task 1.3 Existing/Baseline Conditions Memo
Kittelson will prepare a memo summarizing the results of Tasks 1.1 and 1.2.

Task 1 Deliverables
• Draft and final existing/baseline conditions memo
TASK 2 COMMUNITY AND STAKEHOLDER ENGAGEMENT
Task 2.1 Community Engagement Plan
At the onset of the project, Kittelson will prepare a community engagement plan that will include the following information:
• Project engagement goals
• Scheduling and locations of two (2) community workshops and one (1) pop-up event • Local community groups to include as part of email blasts • Agencies and organizations that can provide input during the outreach process • Project survey questions

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Task 2.2 Agency and Stakeholder Meetings
Kittelson will coordinate two (2) virtual agency/stakeholder meetings and will work with City staff to develop the list of potential attendees. We propose conducting the first meeting as a virtual “walkshop” of key locations at the onset of the project, and the second meeting later in the process to obtain input on project recommendations. Note, LA Metro will be a key attendee of these meetings given the ongoing planning efforts for the Gold Line Extension and Greenwood Station.

Task 2.3 Community Workshops
Kittelson will organize and conduct two (2) public workshops to solicit public input. We propose conducting the first workshop early in the process to obtain input on existing conditions and needs, and the second workshop to obtain input on recommended improvements. The Kittelson team will work with the City to increase public awareness of these public outreach meetings using the City’ s current social media platforms. Kittelson will also work with local stakeholder groups to distribute reminders using social media and other communication tools.

Task 2.4 Pop-Up Booth
Kittelson will host one (1) pop -up booth. We recommend hosting the booth at an existing event in the City (such as the Montebello Farmers Market) to help maximize public participation.

Task 2.5 Project Survey
Kittelson will work with the City to develop a survey that gives insight into residents’, students’, and employees’ bicycling needs. An interactive map will also be included with the online survey, allowing participants to pin comments on specific locations in the city. The survey will be made availa ble online on the project webpage. A Spanish version of the online survey will be included, as well as both English and Spanish paper surveys to be made available at the outreach workshops and pop-up event. Following the survey conclusion, results will be summarized in a technical memorandum to inform the plan’s development.

Task 2.6 Webpage and Social Media Content
Kittelson will work with the City to provide English and Spanish landing pages for the project on the City’s website. Kittelson will provide information for uploading onto the City’s website, such as:
• Information about the project
• A link to the online survey
• Upcoming outreach events
• Plan documents (as they become available for public review) Alternatively, this information can be hosted on a dedicated page on the General Plan Update website.

The City’s social media platforms (i.e., Facebook, Twitter, NextDoor) can be utilized to distribute this content and update residents when new content is available. In addition, Kittelson will identify local stakeholder groups to distribute reminders using their social media channels.

Task 2 Deliverables
• Community engagement plan

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• Agency/stakeholder meeting agendas, materials, and minutes • Workshop materials (presentation materials, agendas, participant lists, pu blic comments, input summary, photos)
• Pop-up event materials (outreach materials, summary of residents reached and their comments, photos)
• English and Spanish project survey and survey results memo • Materials for project webpage – Project flyer that can be updated up to two (2) times during the plan process
TASK 3 PLAN DEVELOPMENT
Task 3.1 Vision and Goals
Kittelson will work with the City to establish and finalize a long -range vision and goal statement for the Project. Input from the public outreach meetings will also inform this process and the final vision, goals, and objectives.

Task 3.2 Proposed Projects
Kittelson will use information from the existing conditions inventory, community outreach, and stakeholder engagement to identify near -term and long -term bicycle infrastructure projects. This will include identifying bikeways that provide comfortable and convenient bicycle access to:
• Local K-12 schools
• Parks and trails
• Existing and proposed transit stations and stops
• Locations that could serve as future multimodal hubs , including identifying opportunities to incorporate emerging mobility technologies such as bikeshare Infrastructure recommendations will include identifying key locations for bike parking, key intersections for bicycle -oriented improvements , and other bike facilities . The Project will also include recommendations for policies and campaigns th at could be implemented in the city, such as SCAG’s Go Human educational safety campaign.

Task 3.3 Project Prioritization
Following development of the project list, Kittelson will work with the City and stakeholders to develop a prioritization methodology based on the City’s goals and objectives, funding priorities, and input received through community outreach. Using this prioritization framework, Kittelson will develop a list of priority projects for the City as a subset of the bikeway project list from Task 3.2.

Kittelson will develop up to five (5) concept designs and five (5) cross -sections (five individual locations total) for the highest-priority infrastructure projects.

Task 3.4 Bicycle-Oriented Wayfinding, Bicycle Parking, and E-Bikes The City has expressed interest in establishing bicycle -oriented wayfinding protocols. Kittelson will prepare a memorandum outlining guidance for selecting locations and designing bicycle -oriented

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wayfinding signage. This memorandum will also include guidance on locating and designing secure bicycle parking at key destinations, and for regulating and planning for e-bikes.

Task 3.5 Funding and Implementation Guidance
Kittelson will work with the City to identify and compile federal, state, regional, and local funding sources to further design and develop the project. To supplement the funding strategy, Kittelson will prepare implementation information for the City for constructing the priority projects , including information on potential obstacles such as right-of-way acquisition.

To assist with implementation, Kittelson will research and develop guidance for designing and maintaining bikeways and other bicycle facilities.

As part of the implementation strategy, Kittelson will provide concept-level cost estimates for Capital Project Construction and Maintenance, Programs, and Plans , using current data and information (e.g., unit cost information from actual project bid documents) and references (e.g., cost estimating tools and guides) to develop conceptual cost estimates. Implementation will include short -term, near-term, and long-term timeframes that reflect the prioritization process used. In addition, Kittelson will develop performance measures for the City to track project implementation.

Task 3 Deliverables
• Draft and final vision and goals memo
• Draft and final proposed projects memo
• Draft and final prioritization methodology memo
• Draft and final priority projects memo (including concept designs and cross-sections) • Draft and final bicycle wayfinding, bicycle parking, and e-bikes memo • Draft and final funding/implementation memo
TASK 4 DOCUMENTATION
Task 4.1 Admin Draft Plan
Kittelson will prepare an admin draft plan document that will serve as a blueprint for staff to facilitate project implementation to improve bicycling in the city. In addition to the plan document, Kittelson will create an executive summary overview of each section, and a technical appendix primarily comprised of any deliverables from previous tasks in order to keep the plan focused and brief.

Task 4.2 Draft Plan
The feedback for the admin draft BMP will be incorporated into the Draft BMP. Once completed, t he Second Draft BMP will be presented to stakeholders and the public for review and input.

Task 4.3 Final Plan
Following the preparation of and revisions to the draft BMP, Kittelson will prepare a final BMP based on feedback obtained from the City, community, and stakeholders.

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Task 4.4 Plan Presentations
Kittelson will prepare presentation material and present the plan at up to two (2) City Council or Commission meetings.

Task 4 Deliverables
• Admin draft plan
• Draft plan
• Final plan
• Up to two (2) sets of Council/Commission presentation materials TASK 5 PROJECT MANAGEMENT
Task 5.1 Kickoff Meeting
Kittelson will hold a virtual project kickoff meeting with the City and other relevant agencies based on input from the City. Kittelson will prepare and distribute a meeting agenda in advance of the meeting and will provide meeting notes, including identification of action items and next steps after the meeting. In addition, Kittelson will submit a data request memorandum to the City.

Task 5.2 Check-in Calls
As part of the kickoff meeting, the Kittelson team will also work with the City to determine the appropriate timing for ten (10) virtual City/consultant coordination meetings during the duration of the project. Coordination meetings will be scheduled around milestones such as deliverables, data collection and community workshops. For each meeting, Kittelson will develop meeting agendas in advance with information such as key points, a review of the project goals, and upcoming events or deliverables for review. Following each meeting, Kittelson will provide meeting notes to participants for their review and approval.

Task 5 Deliverables
• Kickoff meeting agenda and minutes
• Data request memo
• City/Consultant coordination meeting agendas and minutes

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Accepted for: Approved for:

Rangwala Associates Kittelson & Associates, Inc.

Signature Signature
Print Name Print Name
Title Title
Date Date

December 15, 2022
Joseph A. Palombi,
Director of Planning & Community Development
1600 W. Beverly Blvd.

Montebello, CA 90640
Ref: Proposal for Bike Master Plan and Budget Adjustment for the General Plan Update Dear Mr. Joseph Palombi,
We are pleased to submit a proposal to prepare Bike Master Plan (Part 1). Also included is a budget adjustment to complete the outstanding General Plan and Downtown Specific Plan related tasks (Part 2).

PART 1: The Bike Master Plan
The Bike Master Plan will be developed by Kittelson and Associates, Inc. Please see attached scope and budget for Bike Master Plan.

Budget: $139,195.

PART 2: General Plan, Housing Element, Downtown Specific Plan, & CEQA Budget Adjustment
Mandatory changes in legislation related to the Housing Element Update and General Plan has added to the scope and budget of the project. For example: the AFFH Analysis with its extensive data and mapping analysis and multiple HCD reviews were time sensitive tasks that were carried out while exhausting funds allocated to carry out other General Plan and Downtown Plan tasks.

Following are lists of tasks carried out without allocated funds:

A) Affirmatively Furthering Fair Housing Analysis for Hsg Element (AFFH Analysis) In April 2021, the State Housing and Community Development Department released a 96-page AFFH Guidebook on the various requirements of AB 686 that expands and protects Montebello’s duty to affirmatively further fair housing. Compliance required specific and equitable outreach; assessment of existing Fair Housing elements including existing segregation and inclusion trends and practices; evaluation of development sites inventory and their potential 1

to meet housing needs to replace segregation patterns; and programs that remediate identified fair housing issues and/or further promote fair housing. Each component required extensive research, analysis, recommendations, and documentation. The AFFH Analysis was not part of the original Housing Element scope. Funds for AFFH analysis were drawn from later task items such as preparation of Draft General Plan and Downtown Specific Plan documents that are yet to be carried out.

Budget: $72,145
B) Multiple Rounds of Edits from HCD
The State Housing and Community Development Department provided iterative and multiple rounds of written and verbal review, each generating additional documentation and analysis.

Multiple drafts were generated for State review.

Budget: $14,125
C) Housing Element CEQA Review
The original scope was to prepare a single Project level Environmental Impact Review (EIR) Documentation for the General Plan, Housing Element, and Downtown Specific Plan. Since the Housing Element had a more immediate deadline from the State HCD, a separate Initial Study-Negative Declaration (IS-ND) was prepared.

Funds for IS-ND were drawn from later task items such as preparation of EIR for General Plan and Downtown Specific Plan documents that are yet to be carried out.

Budget: $10,500
D) Address AB 747 & SB 99
Assembly Bill (AB) 747, passed in August of 2019, requires Montebello to update the Safety Element of their General Plan to identify evacuation routes and assess the capacity, safety, and viability of those routes under a range of emergency scenarios. Senate Bill (SB) 99 similarly requires Montebello to identify residential developments in hazard areas that do not have at least two emergency evacuation routes. Authoritative state guidance has not yet been developed to determine the type and level of analysis needed under AB 747 and SB 99. Therefore, for the General Plan Update we will conduct a simple analysis that identifies residential developments without sufficient evacuation routes, and evaluates the efficacy of existing evacuation routes under various hazard scenarios in compliance with these two statutes.

Budget: $7,580
2

E) Project Meetings with staff and stakeholders
The General Plan and Housing Element update and the Downtown Specific Plan has required more community outreach and meetings with staff and stakeholders than originally scoped for the project. To keep the project on track, with staff consent, funds for the additional outreach and meetings have been drawn from tasks further down the timeline that are yet to be completed.

The City has also expressed interest in two additional joint workshops with the Planning Commission and City Council: the first workshop to review the projected growth numbers and location prior to initiating EIR documentation; and a second workshop prior to the adoption hearing to review all the draft planning documents.

Budget: $14,455
F) Continued Website Maintenance
The project timeline has been extended due to COVID and the need to address multiple legislative mandates. As a result, domain registration renewal, website hosting and security scanner, and content management for the project website will need to be extended for an additional year.

Budget: $2,000
We are pleased to have continued opportunity for this important project. We are looking forward to your response and encourage you to contact us with any questions.

Respectfully and enthusiastically,
Kaizer Rangwala, AICP , CECD, CNU-A
Principal, Rangwala Associates
Attachment: Kittelson’s Scope and Budget for Bike Master Plan 3

ITEM # 18

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: René Bobadilla, P.E., City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT NO. 3858 WITH ADVANCED AVANT-GARDE COMPANY FOR AS-NEEDED

HOUSING CONSULTING SERVICES AND APPROVE ISSUING A REQUEST FOR

PROPOSALS FOR FUTURE AS-NEEDED PROFESSIONAL SUPPORT SERVICES

FOR THE ADMINSITRATION OF HOME/CDBG PROGRAMS

DATE: April 10, 2023
RECOMMENDATION(S):

It is recommended that the City Council:

1. Approve Amendment No. 1 to Professional Services Agreement No. 3858 between the City of Montebello and Advanced Avant-Garde Company (“Avant-Garde”) to provide as-needed housing consulting services; and

2. Authorize the City Manager and/or his designee to execute Amendment No. 1 to Professional Services Agreement No. 3858 between the City and Avant-Garde to provide housing consulting services as needed; and

3. Approve issuing a Request for Proposals (“RFP”) for as-needed professional support services for the administration of HOME/CDBG programs; and

4. Take such additional, related action that may be desirable.

FISCAL IMPACT:

The proposed Amendment No. 1 to Agreement No. 3858 is intended to provide a one-year extension pursuant to Section 3 (Term) of Professional Services Agreement No. 3858 (dated February 24, 2021) with a one-time allocation of $72,160 which will be funded using the annual administrative allocations provided through HUD’s CDBG and HOME funds as part of the aporived Fiscal Year 2022-23 budget. There is sufficient budget appropriations for administrative support in the CDBG (Fund 255) and HOME (Fund 260) accounts, therefore no budget adjustment is needed for the current fiscal year. Any expenses related to a new professional services agreement will be funded using administrative allocations provided through CDBG and HOME funds and will be included in the

CITY COUNCIL AGENDA REPORT - MEETING OF APRIL 10, 2023

FY 2023-24 budget.

BACKGROUND/DISCUSSION:

On December 21, 2020, staff issued a Request for Proposals (RFP) for professional support for the administration of HOME/CDBG programs.

On February 24, 2021, the City approved Professional Services Agreement No. 3858 between the City of Montebello and Avant-Garde for a two-year term with a not-to-exceed amount of $130,220.

Section 3 of the Agreement allows for a one-year extension. As such, Avant-Garde has requested to exercise its option to extend the Agreement for an additional one (1) year period. At this time, staff is requesting that the City Council allocate funds in the amount of $72,160 to cover the projected cost proposal associated with this request based on the needs of the Planning and Community Development Department/Housing Division.

Each year the United States Department of Housing and Urban Development (“HUD”) provides funding for Housing and Community Development Programs to the City, specifically Community Development Block Grant (“CDBG”) and Home Investment Partnerships (“HOME”) Program funds.

An RFP will be issued by the Planning and Community Development Department seeking a qualified consulting firm who can help with the administration and implementation of the Community Development Block Grant (“CDBG”) Program and HOME Investment Partnership (“HOME”) Grant Program for the City for subsequent years. The RFP will be made available on the city’s website through the Planet Bids portal.

ENVIRONMENTAL:

Pursuant to the California Environmental Quality Act (CEQA), this project is exempt from CEQA under the commonsense rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Because it can be seen with certainty that there is no possibility that the proposed amendment will have a significant effect on the environment, the Project is not subject to CEQA pursuant to State CEQA Guidelines Section 15061(b)(3).

ANALYSIS:

The City’s Housing Division currently operates with two full-time staff members consisting of a Housing Manager and Senior Management Analyst. The continuation of as-needed consulting services is important to ensure that staff has the support necessary to comply with the requirements and regulations established by HUD for the CDBG/HOME programs.

Pursuant to Section 3 of Agreement No. 3858, Avant-Garde will continue to provide program monitoring and funding compliance services for the HOME and CDBG programs through February 2024 unless terminated earlier as stipulated in the agreement. If approved, Avant-Garde will be available to assist City staff to ensure that the program objectives are met. Avant-Garde is committed to working with the city on an as-needed basis and does not bill for work not performed.

Avant-Garde has established a projected budget based on the current needs identified by City staff.

Based upon the proposed scope of work, Avant-Garde has agreed to a "not to exceed amount" of $72,160 for Amendment No. 1. This Amendment will be funded by administrative allocations

CITY COUNCIL AGENDA REPORT - MEETING OF APRIL 10, 2023

provided through CDBG and HOME funds.

Below is a cost breakdown of the additional services:

City of Montebello - Cost Proposal
Program Director Program Manager
-
Program Assistant
-
TotalTasks
Hours

Rate
$125
Hours

Rate
$105
Hours Rate
$75
Hours Cost

Community
Development
Block Grant
Program
104 $13,000 52 $5,460 312 $23,400 468 $41,860.00
Home
Program
96 $12,000 60 $6,300 160 $12,000 316 $30,300.00

Sub-Totals 200 $25,000.00 112 $11,760.00 472 $35,400.00 784 $72,160.00 Hours may be interchanged amongst staff based on the needs identified and availability of City funds
No additional costs will be billed to the City, such as travel, duplication of materials, binding, mailing etc.

SUMMARY:

Staff is recommending approval of a one-year extension to Agreemen #3858 with Avant-Garde, Inc. to preform as-needed CDBG/HOME administrative and related services in a not-to-exceed amount of $72,160; and approve issuing a RFP for as-needed professional support services for the administration of HOME/CDBG programs.

ATTACHMENT(S)

1. Attachment A - Amendment No.1 to Professional Services Agreement No. 3858

2. Attachment B - Professional Services Agreement No. 3858

3. Attachment C - RFP for Housing Consulting Services (03-30-2023) NEXT STEPS:

N/A

CITY OF MONTEBELLO
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT NO. 3858

PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MONTEBELLO

AND ADVANCED AVANT-GARDE COMPANY
This Amendment No. 1 to the Professional Services Agreement ("Amendment No. 1"), is made and entered into on April 10, 2023, and retroactively effective as of February 24, 2023, by and between the City of Montebello, a municipal corporation ("City"), and Advanced Avant-Garde Corporation, a California corporation (C2469855) (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as a “Party” and collectively referred to as “Parties.”

RECITALS
WHEREAS, the City desires to extend the agreement of the professional contractor which provides Professional Support Services for the Administration of CDBG/HOME Programs in the City of Montebello; and
WHEREAS, on January 18, 2023, the City received a Request for Contract Extension by Advanced Avant-Garde Company; and
WHEREAS, by exercising the Contract Extension option, the City is able to continue to receive professional support services for the administration of CDBG/HOME programs for up to an additional year; and
WHEREAS, on February 24, 2021, the City executed Contract No. 3858 with Advanced Avant-Garde, (“Agreement”) attached hereto as Exhibit “A” and made a part to this Amendment No. 1, to provide Professional Support Services for the Administration of CDBG/HOME Programs in an amount not to exceed a total of One Hundred Thirty Thousand, Two-Hundred Twenty Dollars ($130,220); WHEREAS, on April 12, 2023, the City Council allocated an additional Seventy- Two Thousand and One Hundred and Sixty Dollars ($72,160) to cover the extension based on the needs of the department, bringing the aggregate total of the Agreement and Amendment No. 1 to a total sum of Two Hundred Two Thousand, Three Hundred and Eighty Dollars ($202,380). The term of this funding will be retro-active as of February 24, 2023 and is expected to be utilized by February 24, 2024.

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

1. MODIFICATION TO AGREEMENT.
a. COMPENSATION. The amount of compensation paid by City to Contractor for the additional services as identified in Attachment “B” shall not exceed the sum of Seventy-Two Thousand and One Hundred and Sixty Dollars ($72,160), bringing the aggregate total of the Agreement and Amendment No. 1 to a total sum of Two Hundred Two Thousand, Three Hundred and Eighty Dollars ($202,380).

AMENDMENT NO. 1 TO AGREEMENT NO. 3858

b. TIME OF PERFORMANCE. The time of performance for Advanced Avant- Garde, will be retro-active and will be extended from February 24, 2021, to February 24, 2024.

2. EFFECT OF AMENDMENTS. Except as expressly amended herein, all other terms and conditions of the Agreement and its Amendments, Attachments, and Exhibits thereto, shall remain in full force. All of the recitals to this Amendment No. 1 are incorporated into the Agreement as modified by this Amendment No. 1.

City reserves the right to augment or reduce the scope of work as the City deems necessary.

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 to be executed and attested by their respective officers hereunto duly authorized.

CITY OF MONTEBELLO: ADVANCED AVANT-GARDE COMPANY:

By: __________________________________ By:________________________________ René Bobadilla, City Manager Ana Marie LeNoue, President//CEO Dated: ______________________________ Dated: _____________________________ ATTEST:

By: ________________________________
Christopher Jimenez, City Clerk

1 CITY OF MONTEBELLO
Request for Proposals
RFP No. 24 - ##
Consulting Services to assist with the administration of Housing and Urban Development (HUD) programs, services and activities related to Community Development Block Grant (CDBG) and/or the HOME Investment Partnership Program (HOME)

2 Release Date: August 24, 2023
Due Date: Monday, September 25, 2023 at 11 a.m. PST

TO PROSPECTIVE PROPOSERS
The City of Montebello invites firms to submit a proposal in accordance with this Request for Proposals (RFP). Your response to this request will be evaluated to determine your qualifications. Submissions must adhere to the format and content of this RFP. Proposals will not be evaluated unless all parts requested are submitted in a complete package. The information set forth is the minimum required to qualify for consideration. The successful Proposer will be required to enter into a Professional Services Agreement based on the specifications outlined in this RFP.

THE DATE OF SOLICITATION

August 24, 2023

THE PROJECT
Project Name: Consulting Services to assist with the administration of Housing and Urban Development (HUD) programs, services
and activities re lated to Community Development Block
Grant (CDBG) and/or the HOME Investment Partnership
Program (HOME)
Location: City of Montebello

THE OWNER
Name: City of Montebello – Planning/Community Dev. Department Address: 1600 West Beverly Blvd., Montebello, CA 90640 Contact: Joseph Palombi, Director
Contact Phone: (323) 887-1200 ext. 598
Contact E-Mail: [email protected]

PROPOSAL CONTACT
Name: City of Montebello – Housing Department
Address: 1600 W. Beverly Blvd., Montebello, CA 90640
Contact: Rosemary Perich, Housing Manager
Contact Phone: (323) 887-1200 Ext. 454
Contact E-Mail: [email protected]

Any questions related to this RFP should be submitted via the City’s PlanetBids Portal by Monday, September 25, 2023 at 11:00 a.m. PST. To access the City's PlanetBids

3 Portal, please visit: https://www.cityofmontebello.com/rfp-bids/bid-opportunities.html and click on "Bid Opportunities" to locate the RFP.

Consulting Services to assist with the administration of Housing and Urban Development (HUD) programs, services and activities related to Community Development Block Grant (CDBG) and/or the HOME Investment Partnership Program (HOME)
(RFP) No. 23-10

Table of Contents

Page

1.0 Invitation 4

2.0 Background 4

3.0 Objective 4

4.0 City Role 5

5.0 Scope of Service 5

6.0 Staff Contract 6

7.0 Length of Contract 7

8.0 City’s Responsibility 7

9.0 Proposal Content/ Format 7

10.0 Selection Criteria 8

11.0 Federal Requirements 9

12.0 Prohibited Interest 10

13.0 General Terms and Conditions 10

14.0 Ex-Parte Communications 19

15.0 Draft Agreement 20

16.0 Directions for Submittal of Proposal 20

Attachment A – Sample Professional Services Agreement
Attachment B – References
Attachment C– Proposal Content Checklist

4 Consulting Services to assist with the administration of Housing and Urban Development (HUD) programs, services and activities related to Community Development Block Grant (CDBG) and/or the HOME Investment Partnership Program (HOME)
(RFP) No. 23-10

1.0 INVITATION
Through this Request for Proposal (“RFP”) and evaluation process, the City of Montebello is seeking qualified consultant (s) to provide professional services associated with the administration and implementation of the City’s Federal Grant Programs. Montebello, as an Entitlement City, is an annual recipient of Community Development Block Grant Program (CDBG) and HOME Program funds from the U.S. Department of Housing a nd Urban Development (“HUD”).

The City receives approximately $600,000 in CDBG and $ 300,000 in HOME funds each year to implement the following activities and programs: Code Enforcement, Summer Youth Employment, Production of Affordable Housing, Home Impr ovement and Preservation, and Community Housing and Development Organization activities.

The proposals are due no later than Thursday August 25, 2023 by 11:00 a.m.

2.0 BACKGROUND

The City of Montebello is a general law city in Los Angeles County, California, located in the southwestern region of the San Gabriel Valley, 8 m iles east of downtown Los Angeles. The City is surrounded by the City of Rosemead and unincorporated County areas to the north; by the Whittier Narrows Dam Recreation Area and Pico Rivera to the east; by Pico Rivera and Commerce to the s outh; and by Commer ce and unincorporated East Los Angeles to the west. According to the United States Census Bureau, as of July 1, 2021 , the City has an estimated population of approximately 61,204.

3.0 OBJECTIVE

It is the objective of this RFP to solicit proposals from qualified and interested professional consultants to provide professional services associated with the administration and implementation of the City’s Federal Grant Programs (CDBG and HOME funds).

5 4.0 CITY ROLE

City Staff will be responsi ble for the followi ng items with general guidance from selected consultant:
• HUD Program Management
• IDIS Management: flagged items, program set up, program income • Annual Preparation of Consolidated Annual pe rformance and Evaluation Report, Annual Action Plan
• Periodic update of policies and procedures, guidelines • Staff reports, resolutions, presentation
• Prepare environmental reviews (Consultant should have familiarity with NEPA and other Federal and State environmental laws that may impact programs) • Prepare Public Service Agreements/MOU’s
• Budget Preparation
• Maintain project files and checklists
• Respond to HUD letters/correspondence
• Conduct required program monitoring: Public Service Quarterly Reports, Annual Public Services on-site monitoring
• Prepare for and participate in HUD monitoring/audit

5.0 SCOPE OF SERVICE

Under general direction from the Director of Planning and Community Development and designated staff, the selected consultant will be tasked to assist and provide support as needed for management and related functions to successfully execute the projects/programs that are funded with CDBG/HOME funds including, but not limited to the following:

• CDBG/HOME Loan Reconciliation
• Verify funded projects meet Federal Eligibility in accordance with HUD Section 24 of the Code of Federal Regulations
• Awareness of Federal Labor Standards (Prevailing wages/timesheets/Davis Bacon compliance monitoring)
• Collect and verify program eligibility as it relates to CDBG and HOME funded projects
• Housing Rehabilitation Program Management
• Income Qualification
• Field Inspection
• Community Engagement
• Prepare loan/ Grant documents
• Contractor Packets- (Bid Documents)
• CHDO Project Management
• Coordinate with CHDO entity for the development of affordable housing

6 • Provide technical assista nce in evaluation a ffordable housing projects, including maximum subsidy per unit, underwriting requirements, and subsidy layering

Proposed Projects for Fiscal Year 2023/2024
(*Activities may be subject to change)

# Project Name Funding
1 Housing Rights Center (HRC) CDBG Admin
2 Section 108 Loan Payment CDBG

3. Youth Employment Program ( YEP) CDBG

4. Planning and Administration CDBG CDBG

5. Housing Rehabilitation and Preservation Program (HRPP) HOME

6. Planning and Administration HOME HOME

7. Recreation Youth Scholarship Program CDBG

8. YMCA Montebello/Commerce CDBG

9. Heart of Compassion (HOC) CDBG

10. CHDO- Acquisition and New Construction HOME

Total Funding available for FY 2023/2024:

CDBG Funds: $703,939.00 (includes program income)
HOME Funds: $991,152.02 (includes program income)

*The funding amount may be subject to change

On-going Projects from Previous Fiscal Years

# Project Name Funding

3. Public Facilities Improvements CDBG

4. Street Improvements CDBG

5. Montebello Senior Center Improvements CDBG

10. Montebello Community Assistance Program (MCAP) CDBG-CV

15. Heart of Compassion (HOC) CDBG-CV

18. CDBG-CV Program Administration CDBG-CV

It is important to note that HOME-ARP Funds have been allocated to the City in the amount of $1,088,774. The administration of the HOME ARP program will also be a part of the scope of service.

6.0 STAFF CONTACT

7 The contact person or proposal facilitator for this RFP is provided below:

City of Montebello
Attn: Joseph Palombi, Director of Planning & Community Development 1600 West Beverly Blvd.

Montebello, CA 90640
Phone Number: (323) 887-1200 Ext 598

All questions shall be submitted in writing through Planet Bids.

7.0 LENGTH OF CONTRACT

The contract for CDBG and HOME administration services will be for a two-year term with the option to extend for an additional one-year term at the sole and absolute discretion of the City.

8.0 CITY'S RESPONSIBILITY

Upon awarding of the contract, the City shall provide the selected consultant with any pertinent ordinances and resolutions or any other information mutually agreed upon that will assist the consultant with the completion of the contract requirements.

9.0 PROPOSAL CONTENT/FORMAT

In order to maintain uniformity with all proposals submitted, i t is requested that the consultant’s proposal include the following minimum information:

1. Cover letter that serves as an executive summary of the proposal limited to n o more than three (3) pages. The letter should include your firm’s understanding of the work to be performed. In addition, state why your firm believes itself to be the best qualified to perform the services requested. Also, state the Management Contact (name and title of the representative authorized to sign an agreement for your firm) and Project Manager (name and title of the person responsible for day to day management of the project).

2. Experience and qualifications of the consultant and management team, including a description of relevant similar projects. The City reserves the right to reject any of the fir m’s consultants or management team. After the proposal deadlines, substitution of consultants and management team may only be made with the permission of the City.

3. An outline showing tasks and times frames to ensure completion and submittal of the docum ent prior to the Federal deadline (Action Plan, Consolidated Annual Performance Evaluation Report, and Assessment of Fair Housing).

8 4. A reference li st of at least three (3) other public agencies, including contact person’s name and phone number, who the co nsultant currently provides HUD services to.

5. A list of any pending or previous litigation over the past five (5) years related to your firm’s work, and the outcome of any closed claims or cases.

6. Total annual project costs to the City, including a breakdown of costs by task and hourly rates.

The consultant acknowledges that submittal of a proposal constitutes acceptance of and a willingness to comply with all of the terms, conditions and criteria contained within this RFP. Proposals not in compliance with the terms and conditions contained herein may be cause for rejection. The City reserves the right to interpret or change any provision of this RFP at any time prior to the proposal submission due date. Such changes or interpretations will be in the form of an addendum.

10.0 SELECTION CRITERIA

Proposals will be evaluated on the proposer’s ab ility to provide services that meet the requirements set forth in this RPF. The City reserves the right to make such investigations as it deems necessary to determine the ability of the proposer to provide services meeting a satisfactory level of performan ce in accordance with the City’s requirements. The proposer shall furnish such information and data for this purpose as the City may request, at no cost to the City. Interviews and presentations by one, several, or all of the proposers submitting a proposa l may be requested if deemed necessary to fully understand and evaluate the proposer’s capabilities and qualifications.

The adequacy, depth, and clarity of the proposal will influence, to a considerable degree, its evaluation. The final selection of the consultants will be based on the following criteria:

• Cost as compared to related service requirements.
• Proposal personnel - The experience and qualifications of the proposed personnel and the consultants on similar projects. The availability of proposed personnel and overall consultant capabilities to meet additional needs to the City.
• Project Controls- The consultant’s ability to control costs and provide accurate and timely invoices; to monitor and stay within budget; to monitor schedule and review times and the techniques used to complete projects within the proposed time frames.
• Applicant must have federal funded project management experience including:
a. Construction Project Management
b. Familiarity with City Planning Process
i. Securing necessary permits
ii. Onsite inspections

9 • Client References- Provide at least three (3) current references. The ref erences should identify the client, a contact name and telephone number, a description of the services provided. The City also reserves the right to contact the client s that terminated contracts with the consultants as listed in the consultant’s submittal. • Ability to comply with City’s standard professional services agreement. • Award will be in accordance with the provisions of the Montebello Municipal Code.

The proposals may be reviewed individually by staff members. The finalist may be requested to provide the City with a p resentation and/or oral interview. Based on information obtained through this process, staff will make the appropriate recommendation to City Council.

The award of a contract will be based on a combination of the aforementioned criteria and costs.

11.0 FEDERAL REQUIREMENTS

The service is described in these provisions are to be funded through a grant provided by HUD. The successful consultant (s) (“Consultant”) shall comply with all applicable terms and conditions prescribed by the federal government for 3rd party contracts.

The federal government is not a party to this contract and has no obligations or liabilities to any consultant in connection with the performance of this project. The consultant agrees to include this clause in each subcontract.

During the performance of this contract, the consultant agrees as follows:

1. Nondiscrimination- in accordance with title VI of the Civil Rights Act, th e consultant agrees that it will not discriminate against any employee or applicant for e mployment because of race, color, creed, national origin, sex, age, or disability.

2. Equal Employment Opportunity - the following Equal Employment Opportunity requirements applied to the underlying contract:
• Race, color, creed, national origin, sex - the contractor agrees to take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, national origin, sex, or age. Such action shall include, but not be limited to, the following: emp loyment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; And selection for training, including apprenticeship.

3. Age - the consultant agrees to refrain from discr imination against president and prospective employees for reason of age.

4. Disabilities- the consultant agrees that it will comply with the requirements of the you. S.

Equal Employment Opportunity Commission, “Regulations to implement the Equal Employment provisions of the Americans with disability act,” 29 C. F. R. Part 1630, pertaining to the employment of persons with disabilities.

5. The consultant also agrees to include these requirements in each subcontract financed in whole or in part with federal assistance provided by HUD, modified only if necessary to identify the affected parties.

10 The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban development act of 1968, as amended 12 U. S. C. 1701 u (Section 3). the purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD- assisted projects covered by Section 3, shell, to the greatest extent feasible, be directed to low- and very low- income persons, particularly persons who are recipients of HUD assistance for housing.

The parties to this contract agreed to comply with HUD’s regulation in 24 CFR part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations.

The consultant agrees to send to each labor organization or representative or workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers representa tive of the contractors' commitments under this Section 3 clause and will post copies of the notice in conspicuous places at work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to higher, availability of apprenticeship and training positions, the qualifications for each; And the name and location of the person (s) and taking applications for each of the positions; And the anticipated date the word shall begin.

The consultant agrees to in clude this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that th e subcontractors in violation of the regulations in 24 CFR part 135. The consultant will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135.

The consul tant will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor selected but before t he contract is executed, and (number 2) with persons other than those to whom the regulat ions of 24 CFR part 135 require employment opportunities to be directed, or not filled to circumvent the consultants' obligations under 24 CFR part 135.

Noncompliance with HUD’s regulation in 24 CFR part 135 may result in sanctions, termination of this c ontract for default , and debarment or suspension from future HUD assisted contracts.

12.0 PROHIBITED INTEREST

No council member, officer, or employee of the city of Montebello or of a local public body during his/ her tenure or for one year thereafter shall have any interest, direct or indirect, in this contract or the proceeds thereof. If any such interests comes to the knowledge of any party at any time, a full and com plete disclosure of all such information will be made in writing to the other parties, ev en if such interests would not be considered a conflict of