Agenda, regular meeting, first session — Monterey Park City Council, April 6, 2022 (part 1 of 2)

CITY COUNCIL OF MONTEREY PARK

THE CITY COUNCIL ACTING ON BEHALF OF THE SUCCESSOR AGENCY OF THE FORMER

REDEVELOPMENT AGENCY, THE HOUSING AUTHORITY, THE MONTEREY PARK FINANCING

AUTHORITY AND THE MONTEREY PARK GEOLOGIC HAZARD ABATEMENT DISTRICT AGENDA

REGULAR CITY COUNCIL MEETING
Wednesday
April 6, 2022
6:30 p.m.

GENERAL INFORMATION
Documents related to an Agenda item are available to the public in the City Clerk’s Office located at 320 West Newmark Avenue, Monterey Park, CA 91754, during normal business hours and the City’s website at http://www.montereypark.ca.gov/AgendaCenter/City-Council-17.

The public may watch the meeting live on the city’s cable channel MPKTV (AT&T U -verse, channel 99 or Charter Communications, channel 182) or by visiting the city’s website at http://www.montereypark.ca.gov/133/City-Council-Meeting-Videos.

PUBLIC PARTICIPATION
You may speak up to 5 minutes on Agenda item. You may combine up to 2 minutes of time with another person’s speaking. No person may speak more than a total of 10 minutes. The Mayor and City Council may change the amount of time allowed for speakers.

Per the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call City Hall at (626) 307-1359 for reasonable accommodation at least 24 hours before a meeting.

Council Chambers are wheelchair accessible.

CALL TO ORDER Mayor
FLAG SALUTE Mayor
ROLL CALL Peter Chan, Hans Liang, Henry Lo, Fred Sornoso, Yvonne Yiu

AGENDA ADDITIONS, DELETIONS, CHANGES AND ADOPTIONS

PUBLIC COMMUNICATIONS:

While all comments are welcome, the Brown Act does not allow the City Council to take action on any item not on the agenda. The Council may briefly respond to comments after Public Communications is closed. Persons may, in addition to any other matter within the City Council's subject-matter jurisdiction, comment on Agenda Items at this time. If you provide public comment on a specific Agenda item at this time, however, you cannot later provide comments at the time the Agenda Item is considered.

MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community.

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Monterey Park City Council Agenda, April 6, 2022 - Page 2

STAFF COMMUNICATIONS:
• Fire Department
• Recreation Department
• Public Works Department

[1.] PRESENTATION – None.

[2.] OLD BUSINESS

2-A. AMERICAN RESCUE PLAN ACT FUNDING
It is recommended that the City Council consider:
(1) Reviewing, discussing, and providing direction on the allocation of American Rescue Plan Act funding; and
(2) Taking such additional, related, action that may be desirable.

[3.] CONSENT CALENDAR ITEM NOS. 3A-3F

3-A. MINUTES
It is recommended that the City Council consider:
(1) Approving the minutes from the regular meeting of March 2, 2022; and (2) Taking such additional, related, action that may be desirable.

3-B. WAIVE FURTHER READING AND ADOPT AN ORDINANCE ESTABLISHING THE LAND USE RELATED TIME SUSPENSION PERIOD RELATED TO THE COVID-19 EMERGENCY It is recommended that the City Council consider:
(1) Waiving the second reading and adopting the proposed ordinance; and/or (2) Taking such additional, related, action that may be desirable.

3-C. WAIVE FURTHER READING AND ADOPT AN ORDINANCE AMENDING VARIOUS SECTIONS OF MONTEREY PARK MUNICIPAL CODE CHAPTER 6.15 REGULATING

MANDATORY ORGANIC WASTE DISPOSAL REDUCTION
It is recommended that the City Council consider:
(1) Waiving the second reading and adopting the proposed ordinance; and/or (2) Taking such additional, related, action that may be desirable.

3-D. 2020-2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT
It is recommended that the City Council consider:
(1) Receiving and filing the City’s 2020- 2021 Annual Comprehensive Financial Report (ACFR); and
(2) Taking such additional, related, action that may be desirable.

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Monterey Park City Council Agenda, April 6, 2022 - Page 3

3-E. PROFESSIONAL SERVICES AMENDMENT WITH BARTEL ASSOCIATES, LLC FOR THE

CALPERS RETIREMENT PLAN, EMPOWER RETIREMENT PLAN, AND OTHER

POSTEMPLOYMENT BENEFITS ACTUARIAL VALUATION PROPOSALS AND DATA

REQUESTS
It is recommended that the City Council consider:
(1) Authorizing the City Manager to execute an Amendment with Bartel Associates, LLC in a form approved by the City Attorney, to provide CalPERS Retirement Plan, Empower Retirement Plan, and Other Postemployment Benefits (OPEB) actuarial valuation proposals and data requests for an amount of $135,800; and (2) Taking such additional, related, action that may be desirable.

3-F. STATE HOMELAND SECURITY PROGRAM SUBRECIPIENT AGREEMENT GRANT YEAR 2020 – AWARD OF AGREEMENT
It is recommended that the City Council consider:
(1) Adopting a Resolution authorizing the City Manager to apply for, receive, and execute an agreement, in a form approved by the City Attorney, with the County of Los Angeles for an amount not to exceed $182,720, for the State Homeland Security Program Grant Year 2020; and
(2) Taking such additional, related, action that may be desirable.

[4.] PUBLIC HEARING – None.

[5.] NEW BUSINESS – None.

[6.] CITY COMMUNICATIONS (CITY COUNCIL)

6-A. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEREY PARK ENSURING EQUAL POLICIES FOR REPRODUCTIVE HEALTH CARE SERVICES (Requested by Mayor Henry Lo and Councilmember Yvonne Yiu)
It is recommended that the City Council consider:
(1) Adopting a resolution ensuring equal policies for reproductive health care services; and (2) Taking such additional, related, action that may be desirable.

[7.] FUTURE AGENDA ITEMS

[8.] CLOSED SESSION (IF REQUIRED; CITY ATTORNEY TO ANNOUNCE)

ADJOURN

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City Council Staff Report
DATE: April 6, 2022
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Martha Garcia, Director of Management Services
SUBJECT: American Rescue Plan Act Funding
RECOMMENDATION:

It is recommended that the City Council consider:

1. Reviewing, discussing, and providing direction on the allocation of American Rescue Plan Act funding; and

2. Taking such additional, related, action that may be desirable.

EXECUTIVE SUMMARY:

On March 11, 2021, President Joseph R. Biden signed into law the American Rescue Plan Act (ARPA) of 2021, a $1.9 trillion federal aid package designed to help the American people and American economy recover from the prolonged impacts felt from COVID-19.

The bill includes $350 billion in direct financial relief for all state, local, tribal, and territorial governments known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF), $15,043,184 of which has been allocated to the City of Monterey Park.

The City received half of its allocation ($7,521,592) in June 2021 with the remaining amount to be received in June 2022. City Council has approved appropriations of $6,925,837 million to be expensed on allowable purchases.

The City is requesting direction for the remaining ARPA funds.

BACKGROUND:

The $15,043,184 is payable in two equal lump sums, twelve months apart. The city received its first installment totaling $7,521,592 in June 2021. The second allocation is expected in June 2022.

The Final Rule was issued on January 7, 2022, by the U.S. Department of the Treasury and takes effect April 1, 2022. The list of eligible purchases are summarized below:

Old Business - 2A

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Staff Report

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April 6, 2022

Public Health and Negative Economic Impacts:
• Fund COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff.
• Respond to the pandemic or its negative economic impacts, including hiring back governmental staff, aid to impacted industries, expenses to improve efficacy of public health and economic relief programs, and assistance to households and small businesses.

Premium Pay:
• Offer additional support to those who had the greatest health risks because of their service in critical infrastructure sectors.

Revenue Loss:
• Use funds to provide government services to the extent of the reduction in revenue experienced due to the pandemic.

Water, Sewer and Broadband Infrastructure:
• Make necessary investments to improve access to clean drinking water and invest in wastewater and stormwater infrastructure.
• Make necessary investments to provide unserved or underserved locations with new or expanded broadband access.

Local governments can use the funds to help residents and businesses directly hurt by the pandemic, invest in long-term projects, or supplement budgets hit by the decline in tax revenue amid shutdown restrictions that curtailed economic activity over the past year.

It is important to keep in mind the spending timeline of these funds, ARPA funds need to be expended to cover costs incurred by the City by December 31, 2024.

The needs of the community far outweigh the $15,043,184 the City was allotted; however, this funding is a unique opportunity to lay the foundation for our local government's COVID-19 recovery. As such, City Council has approved appropriation s of $6,925,837 million to be expensed on allowable purchases. The table below illustrates appropriations:

DESCRIPTION BUDGET

APPROPRIATION
COMMUNITY LITERACY ENHANCEMENTS 132,000
COVID19 RESPONSE AND PREVENTION 325,000
CYBER SECURITY AND TECHNOLOGY 1,221,000
PUBLIC SAFETY VEHICLES 1,750,000
REPLACEMENT OF A/C UNITS 250,000
SECURITY SURVEILLANCE CAMERA SYSTEM 1,312,127
STAFFING 1,935,710
TOTAL 6,925,837

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Staff Report

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April 6, 2022

The City Manager’s office, in consultation with the department directors, has produced an updated list of prospective projects that meet Final Rule guidelines . In addition to these guidelines, the projects and programs were developed with consideration to:

• Council Priorities
• Alternative, past, or expected funding to address the economic impact or implement the project
• Meeting the unique needs of our communities and population • If the project can be implemented in the Rule timeframe • Return on investment of the project
• One time cost

TABLE OF PROJECTS:

City staff is requesting direction regarding the recommended cost presented in the table above.

DEPARTMENT DESCRIPTION ESTIMATED COST Fiscal Year
Management Services Staffing $1,500,000 2022-2023 & 2023-2024 Recreation and Community Services Barnes Gym Restrooms $230,000 2022-2023 Recreation and Community Services Edison Trails Park Playground Replacement $200,000 2022-2023 Recreation and Community Services Garvey Ranch Park Large Playground Replacement $480,000 2022-2023 Recreation and Community Services Garvey Ranch Park Small Playground Replacement $175,000 2022-2023 Recreation and Community Services George Elder Park Practice Court Conversation $40,000 2022-2023 Recreation and Community Services Langley Center Restrooms $200,000 2022-2023 Recreation and Community Services Sequoia Park Small Playground Replacement $220,000 2022-2023 Fire Department Generator $400,000 2022-2023
Recreation and Community Services Sierra Vista Playground Replacement $480,000 2023-2024 Recreation and Community Services Bella Vista Park Playground Replacement $200,000 2023-2024 Recreation and Community Services Highlands Park Large Playground Replacement $450,000 2023-2024 Recreation and Community Services Highlands Park Small Playground Replacement $175,000 2023-2024 Police Department Gate Ramp $60,000
Police Department Range Equipment $200,000
Police Department Range Ventilation System $200,000
Police Department Watch Commander Office Remodel $30,000 Fire Department Fire Station 61 upstairs remodel $700,000 Fire Department Fire Station 63 rebuild $6,500,000
Fire Department Fire Station 61 Storage $500,000
Fire Department Fire Station 63 Hose Tower Demo $60,000 Police Department Dual Modem MDCs $128,000

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Staff Report

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April 6, 2022

FISCAL IMPACT:

Fiscal impact will depend on Council’s direction.

Respectfully submitted by:

Martha Garcia
Director of Management Services

Approved by:

Reviewed by:

Ron Bow
City Manager
Karl H. Berger
City Attorney

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City Council Staff Report
DATE: April 6, 2022

AGENDA I
TEM NO:

TO: The Honorable Mayor and City Council
FROM: Vincent D. Chang, City Clerk
SUBJECT: Minutes
RECOMMENDATION:

It is recommended that the City Council consider:

1. Approving the minutes from the regular meeting of March 2, 2022; and

2. Taking such additional, related, action that may be desirable.

EXECUTIVE SUMMARY:

None.

BACKGROUND:

None.

FISCAL IMPACT:

None.

Respectfully submitted,
Prepared by:

Vincent D. Chang
City Clerk
Viridiana Martinez
Senior Clerk Typist
Approved By:

Ron Bow
City Manager
ATTACHMENT(S):

1. Draft Minutes
Consent Calendar - 3A

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Staff Report
April 6, 2022
ATT
ACHMENT 1
Draft Minutes

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MISSION STATEMENT
The mission of the City of Monterey Park is to provide excellent services to enhance the quality of life for our entire community

MINUTES

MONTEREY PARK CITY COUNCIL

FINANCING AUTHORITY (MPFA)

HOUSING AUTHORITY (MPHA)

GEOLOGIC HAZARD ABATEMENT DISTRICT (GHAD)

SUCCESSOR AGENCY (SA)

REGULAR MEETING
MARCH 2, 2022

The City Council, the Financing Authority (MPFA), the Housing Authority (MPHA), the Geologic Hazard Abatement District (GHAD), and the Successor Agency (SA) of the City of Monterey Park held a Regular Teleconference Meeting via Zoom on Wednesday, March 2, 2022 at 6:30 p.m. The regular meeting was conducted pursuant to Government Code § 54953(e), as implemented by City Council Resolution. Accordingly, Council Members were provided a meeting login number and conference call number and were not physically present at Council Chambers.

PUBLIC PARTICIPATION

In accordance with Government Code § 54953 (e) and guidance from the California Department of Public Health on gatherings, remote public participation was allowed in the following ways:

Via Email
Public comment will be accepted up to 24 hours before the meeting via email to [email protected]
. Written communications (if any) will be briefly
summarized and include the name of each individual that submitted a comment; the summary will be read via prerecorded video and played during the Public Comment section of the City Council meeting. To view the full text of written communications, please visit
www.montereypark.ca.gov/AgendaCenter. All written communications are provided to the City Council and filed as part of the City’s administrative record.

Via Telephone
Public comment may be submitted via telephone during the meeting, before the close of public comment, by calling (888) 788-0099 or (877) 853-5247 and entering Zoom Meeting ID: 289 222 5995 then press pound (#). When prompted to enter participation ID number press pound (#) again. If participants would like to make a public comment they will enter “*9” then the Clerk’s office will be notified, and you will be in the rotation to make a public comment. Press “ *6” to unmute yourself when called upon to speak. Partici pants are encouraged to join the meeting 15 minutes before the start of the meeting. You may speak up to 5 minutes on Agenda item. Speakers will not be allowed to combine time. The Mayor and City Council may change the amount of time allowed for speakers. As part of the virtual meeting protocols, anonymous persons will not be allowed to provide public comment.

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March 2, 2022
Important Disclaimer – When a participant calls in to join the meeting, their name and/or phone number will be visible to all participants. Note that all public meetings will be recorded.

CALL TO ORDER:

Mayor Lo called the meeting to order at 6:30 p.m.

FLAG SALUTE:

Mayor Lo led the Flag Salute.

ROLL CALL:

City Clerk Vincent Chang called the roll:

Council Members Present: Peter Chan, Hans Liang, Henry Lo, Yvonne Yiu Council Members Absent: Fred Sornoso

ALSO PRESENT: City Treasurer Jospeh Leon, City Manager Ron Bow, City Attorney Karl Berger, Assistant City Manager Inez Alvarez, Fire Chief Matt Hallock, Police Chief Kelly Gordon, City Librarian Diana Garcia, Director of Public Works Frank Lopez, Director of Human Resources & Risk Management Christine Tomikawa, Director of Management Services Martha Garcia, Director of Recreation & Community Services Robert Aguirre, Interim Director of Community & Economic Development Steve Sizemore , Economic Development Manager Joseph Torres, Water Utility Manager Richard Gonzales, Principal Management Analyst Xochitl Tipan, Deputy City Clerk Cindy Trang, Community Communications Coordinator Randy Ishino, Senior Clerk Typist Viridiana Martinez

AGENDA ADDITIONS, DELETIONS, CHANGES AND ADOPTIONS

City Manager Bow announced that Police Chief Gordon would be providing information during Staff communications. He also reported that the March 2, 2022 special meeting at 5:30 p.m. was cancelled due to error in noticing.

PUBLIC COMMUNICATIONS

Public Speaker Disclaimer: Meetings are held virtually, and the information listed for the speakers may or may not reflect the correct spelling of their respective name.

- Jaime Rodriguez asked for clarification on the procedures implemented during public communications.

- Vincent Chang suggested City Council and City staf f consider installing a memorial in honor of Rudy Salas and Steve Salas, founders of the band Tierra.

He expressed that the brothers were active members of the community and actively shared their artistic talents with the community.

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March 2, 2022
- Jaime Rodriguez Sr. expressed support in honoring the Salas brothers for their artistic contributions to the City.

- City Clerk Chang received, filed, and played a prerecorded audio of written communication from speaker Richard Nakano inquiring about Senate Bill 1383 , California’s Short-Lived Climate Pollutant Reduction Strategy.

STAFF COMMUNICATIONS

- Recreation & Community Services Director Aguirre gave a PowerPoint presentation on upcoming City events, the Langley Center reopening, and the Langley Center fitness expansion.

- Public Works Principal Management Analyst Tipan gave a PowerPoint presentation informing the community of the Free Compost eve nt on March 12, 2022 at Garvey Ranch Park and the Spring Cleaning Day event on April 9, 2022 at Barnes Park.

- City Librarian Garcia informed the community that there will be two City Financial Forecast meetings on Thursday, March 10, 2022 and Tuesday, March 22, 2022 via Zoom.

- Police Chief Gordon informed the community that the Police Department’s Community Academy is now accepting applications.

1. PRESENTATION

Matters listed under presentation are for informational content and discussion only.

1A. COMMISSIONS, COMMITTEES, AND BOARDS OVERVIEW

Assistant City Manager Alvarez and City Attorney Berger gave an informational PowerPoint presentation on the City’s commissions, committees, and boards.

2. OLD BUSINESS – None.

3. CONSENT CALENDAR ITEMS NOS. 3A-3I
Matters listed under consent calendar are considered to be routine, ongoing business and are enacted by one motion unless specified.

Action Taken: The City Council approved and adopted I tem Nos. 3A, 3B, 3F, 3G, 3H, and 3I on Consent Calendar, excluding Item Nos. 3C, 3D, and 3E which were pulled for discussion and separate motion, reading resolutions and ordinances by the title only and waiving further reading thereof.

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Motion: Moved by Council Member Liang and seconded by Council Member Chan, motion carried by the following vote:

Ayes: Council Members: Yiu, Chan, Liang, Lo
Noes: Council Members: None

Absent: Council Members: Sornoso
Abstain: Council Members: None

3A. MINUTES

Approve the minutes from the regular meeting of February 2, 2022.

Action Taken: The City Council approved the minutes from the regular meeting of February 2, 2022 on Consent Calendar.

3B. PURCHASE OF ONE-HUNDRED (100) DESKTOP COMPUTERS

The City's independent auditing firm, CliftonLarsonAllen LLP, completed a cyber security audit. Among other things, the audit identified the need to replace aging/obsolete desktop computers to allow for a more secure cyber -environment.

Having new hardware and software will allow the City to be in alignment with cybersecurity standards. Staff recommends the purchase of 100 desktop computers for an amount not to exceed of $96,000.

Action Taken: The City Council waived bidding requirements pursuant to Monterey Park Municipal Code § 3.20.050(2) and purchase computers from Dell Marketing, LP, in an amount not to exceed $96,000 on Consent Calendar.

3C. PURCHASE AND CONVERSION OF POLICE DEPARTMENT VEHICLES

The Police Department requested a budget modification for replacement and conversion/up-fitting of eight patrol vehicles that have exceeded their useful life and need replacement. Staff researched available vehicles and options and determined the Ford Police Interceptor SUV is the best replacement choice for the Police Department’s needs. Staff recommends the purchase of eight Ford Police Interceptor SUV’s.

Action Taken: The City Council authorized the City Manager to amend a contract (Agreement # 1855-A) with 72 Hour LLC dba National Auto Fleet Group, in a form approved by the City Attorney, for the purchase of Police Department Vehicles through 72 Hour LLC dba National Auto Fleet Group; and authorized the City Manager to amend the contract (Agreement # 1967-AC) with West Coast Lights and Siren, in a form approved by the City Attorney, for the conversion/up-fitting of Police Department Vehicles through West Coast Lights and Siren.

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Motion: Moved by Council Member Yiu and seconded by Council Member Chan, motion carried by the following vote:

Ayes: Council Members: Yiu, Chan, Liang, Lo
Noes: Council Members: None

Absent: Council Members: Sornoso
Abstain: Council Members: None

3D. AUTHORIZE THE CITY MANAGER TO EXECUTE LICENSE AGREEMENTS

WITH NON-PROFIT YOUTH ATHLETIC ORGANIZATIONS FOR THEIR USAGE

OF DESIGNATED STORAGE UNITS AND SNACK BARS IN CITY PARKS

The City of Monterey Park has a long history of providing the community with access to a variety of youth sports with the assistance of local non- profit organizations.

These local non-profit organizations utilize City facilities to manage sports leagues, clinics and competitions focused on the development of young athletes. The City would like to continue working with the athletic organizations to provide recreational and competitive sports opportunities. To manage each of these sports the organizations store maintenance and athletic equipment that is housed in storage units located at each park for easy and consistent access. Some of the organizations also utilize designated snack bars to help raise funding to support their non-profit.

The City will continue to provide dedicated spaces for the storage units to be housed and maintain the area around each unit and provide access to designated snack bars for permitted use. Each organization will continue to be responsible for securely storing their equipment; maintaining active status and in good standing as a non- profit organization; and ensuring the site stays clean and in usable condition. The City is not responsible for the storage unit or its contents. Organizations operating a snack bar will be responsible for and in compliance with all County of Los Angeles Public Health Department’s health and safety standards. Even though these organizations have been active for many years and have stored equipment in City parks, the City would like to establish a license agreement with each organization to document the usage of the spaces.

Staff is recommending City Council authorize the City Manager, or designee, to execute license agreements, in a form approved by the City Attorney to use designated storage units and snack bars in City parks.

Discussion: City Attorney Berger declared that Mayor Lo and Council Member Chan have a potential property -related conflict of interest on subject property, Garvey Ranch Park, and removed Garvey Ranch Park from consideration.

Action Taken: The City Council authorized the City Manager, or designee, to execute license agreements, in a form approved by the City Attorney with the Monterey Park Sports Club Baseball, Manta Ray Parents Association, MPK Baseball and Softball Inc, California Amateur Softball Association, and Socal Elite

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March 2, 2022
Soccer Club to utilize designated storage units and snack bars in City parks, as amended to remove Garvey Ranch from consideration due to potential property - related conflict of interest on subject property.

Motion: Moved by Council Member Chan and seconded by Council Member Yiu, motion carried by the following vote:

Ayes: Council Members: Yiu, Chan, Liang, Lo
Noes: Council Members: None

Absent: Council Members: Sornoso
Abstain: Council Members: None

3E. AWARD OF CONTRACT TO IBI GROUP FOR SPIRIT BUS FIXED- ROUTE

TRANSIT SYSTEM STUDY

Staff recommends that the City Council award a Professional Services Agreement to IBI Group to assess the City’s Spirit Bus transit system and to assist in the preparation of a Request for Proposals (RFP) to manage and operate the transit system. The Contract with IBI Group is for an amount not to exceed $69,000.

Action Taken: The City Council authorized the City Manager to execute a Professional Services Agreement with IBI Group, in a form approved by the City Attorney, to assess the City’s Fixed -Route Transit System in an amount not to exceed $69,000.

Motion: Moved by Council Member Chan and seconded by Council Member Liang, motion carried by the following vote:

Ayes: Council Members: Yiu, Chan, Liang, Lo
Noes: Council Members: None

Absent: Council Members: Sornoso
Abstain: Council Members: None

3F. HIGHWAY SAFETY IMPROVEMENT PROJECT (HSIP) CYCLE 7 TRAFFIC SIGNAL IMPROVEMENTS PROJECT – AWARD OF CONTRACT

On December 1, 2021, The City Council adopted a resolution approving the design and plans for the HSIP Cycle 7 Traffic Signal Improvements Project and authorized the solicitation of bids. The deadline for the submittal of bids was February 8, 2022.

Seven bids were received. Staff completed the review of the bids and recommends that the contract be awarded to PTM General Engineering Services, Inc in the amount of $1,030,500. A 10% contingency of $103,050 is requested for a total project cost of $1,133,550. This project is currently funded by HSIP grant funds in the amount of $832,500 and Measure R Funds in the amount of $301,050 for a total of $1,133,550.

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CEQA (California Environmental Quality Act):

The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to 14 California Code of Regulations §15301 as a Class 1 categorical exemption (Existing Facilities). The project results in minor alterations to existing public facilities involving no significant expansion of the existing use. The Project is not anticipated to have any significant impacts with regards to traffic, noise, air quality or water quality.

Action Taken: The City Council authorized the City Manager to execute a public works contract, in a form approved by the City Attorney, with PTM General Engineering Services, Inc., in the amount of $1,030,500 for the HSIP Cycle 7 Traffic Signal Improvements Project, Specification No. 2021 -004; and authorized the Director of Public Works to approve change orders and contingency up to $103,050 (10%) of the contract amount, for a total project cost of $1,133,550 on Consent Calendar.

3G. NOTICE OF COMPLETION FOR DEMOLITION & RECONSTRUCTION OF FIRE STATION 62 SPECIFICATION NO. 2019-004

Pursuant to City Council Resolution No. 11701, the Public Works Director recorded the Notice of Completion for the Demolition and Reconstruction of Fire Station 62 on December 22, 2021 (final recording date is January 21, 2022). The project is now complete, and the work was inspected and approved by the Building Official and City Engineer.

Action Taken: The City Council received and filed the Notice of Completion recorded by the Public Works D irector on December 22, 2021, accepting the Demolition and Reconstruction of Fire Station 62 completed by Robert Clapper Construction Services, Inc. on Consent Calendar.

3H. COUNTY OF LOS ANGELES, AWARD OF MEASURE B FUNDS

The
City of Monterey Park Fire Department staff applied for Measure B funds in 2021.

Staff was notified by the Measure B Advisory Board (MBAB) on February 7, 2022, that both applications were recommended for funding. The total grant amount for the two proposed projects is $110,601. A final determination was made by the Board on February 21, 2022. This one- time grant will be used to procure two monitor/defibrillators and one automated chest compression device. The equipment will replace dated units, currently on apparatuses.

Action Taken: The City Council received and filed the County of Los Angeles award of Measure B Funds report on Consent Calendar.

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3I. 2019 STATE HOMELAND SECURITY GRANT PROGRAM UPDATE

The City received a total of $106,444 in 2019 State Homeland Security Grant Program (2019 SHSP) funds and contingency or de- obligated funds for the Monterey Park Fire Department. The Department identified two projects, for specialized hydraulic tools, costing $86,444 in total to be paid for by the 2019 SHSP.

The tools are used in emergency circumstances to extract victims from vehicles.

Currently, the Department does not possess the specialized equipment. Instead, firefighters must rely on more labor-intensive gear that can prolong victim extraction.

The 2019 SHSP p erformance period expired on February 28, 2022. Due to time constraints and the vendor purchasing process, staff procured the equipment in accordance with Section 9 of the Budget Resolution (Resolution No. 12251, adopted June 16, 2021). The alternative was to forfeit the purchase and return the $86,444 to the County of Los Angeles for redistribution to another agency.

To obtain the best price for the purchase, staff solicited bids from the following companies: Diamondback Fire & Rescue Inc., L&N Curtis & sons, Inc., HURST, and AM KUS Rescue Systems (the manufacturer of the hydraulic tools). Staff was informed by AMKUS that the local AMKUS dealer for the City of Monterey Park is Diamondback Fire & Rescue Inc. The other two vendors are not suppliers and therefore did not provide bids. In an effort to secure another bid staff contacted The Fire Store; however, no response was received.

Action Taken: The City Council received
and filed t he 2019 State Homeland
Security Grant Program Update report on Consent Calendar.

4. PUBLIC HEARING – None.

5. NEW BUSINESS

5A. FY 2021-2022 MID-YEAR FINANCIAL REPORT

The City’s Mid -Year Report compares the revenues and expenditures occurring during the first six months of the fiscal year against budgeted amounts to determine appropriate adjustments; provides links between the City budget, the financial records, and the independent financial audit and; compares revenues earned and expenses made during the first six months of the Fiscal Year (FY) 2021-2022 against the FY 2020-2021 figures.

Action Taken: The City Council (1) received and filed the FY 2021-2022 Mid-Year Financial Report; (2) authorized the increase of Committed Catastrophic-Event by $500,000 from $4.34 million to $4.84 million; and (3) authorized an additional budget appropriation of $1,204,740 from various funds.

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March 2, 2022
Motion: Moved by Council Member Liang and seconded by Council Member Chan, motion carried by the following vote:

Ayes: Council Members: Yiu, Chan, Liang, Lo
Noes: Council Members: None

Absent: Council Members: Sornoso
Abstain: Council Members: None

6. CITY COMMUNICATIONS (CITY COUNCIL)

Council Member Yiu reported that she was currently in Sacramento representing Monterey Park at the Contract Cities Association Legislative Tour.

Council Member Chan reported that he attended the grand opening of the Langley Center fitness expansion.

Council Member Liang reported that he attended the grand opening of the Langley Center fitness expansion.

Mayor Lo reported that he attended the grand opening of the Langley Center fitness expansion. He expressed solidarity with the people of Ukraine.

7. FUTURE AGENDA ITEMS

Mayor Lo proposed drafting a resolution in solidarity with the people of Ukraine.

8. CLOSED SESSION (IF REQUIRED; CITY ATTORNEY TO ANNOUNCE) None.

ADJOURNMENT
There being no further business for consideration, the meeting was adjourned at 8:45 p.m.

__________________________
Vincent D. Chang
City Clerk

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City Council Staff Report
DATE: April 6, 2022
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Steve Sizemore, Interim Director of Community Development Jessica Serrano, Planning Manager
SUBJECT: Waive Further Reading and Adopt an Ordinance Establishing the Land Use Related Time Suspension Period Related to the COVID -19 Emergency
RECOMMENDATION:

It is recommended that the City Council consider:

1. Waiving the second reading and adopting the proposed ordinance; and/or

2. Taking such additional, related, action that may be desirable.

EXECUTIVE SUMMARY:

The Ordinance was introduced and received first reading at the March 16, 2022 City Council meeting. The original staff report, from March 16, 2022, is attached for reference. Second reading and adoption of this Ordinance is recommended. If adopted, the Ordinance will take effect in 30 days
Respectfully submitted by: Prepared by:

Steve Sizemore
Interim Director of Community
Development
Jessica Serrano
Planning Manager
Approved by: Reviewed by:

Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT:

1. Draft Ordinance

2. March 16, 2022 Staff Report
for
Consent Calendar - 3B

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Staff Report
April 6, 2022
ATTACHMENT 1
Draft Ordinance

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1 ORDINANCE NO. ____

AN UNCODIFIED ORDINANCE ESTABLISHING THE LAND USE
RELATED TIME SUSPENSION PERIOD RELATED TO THE COVID-19
EMERGENCY.

The City Council of the City of Monterey Park does ordain as follows:

SECTION 1: The City Council finds as follows:

A. On March 11, 2020, at 7:00 p.m., the City Manager declared a state of local emergency due to the COVID-19 Pandemic. That Emergency was ratified by Resolution No. 12142, adopted March 18, 2020 (the “COVID-19 Emergency”).

B. During the COVID-19 Emergency, the City Council adopted a series of regulations which are, collectively, identified as the 2020 Monterey Park Business Recovery Program (the “2020 Program”).

C. Since the 2020 Program was adopted, the City Council took various actions to codify regulations on a permanent basis. Most of the 2020 Program is now codified within the Monterey Park Municipal Code (“MPMC”).

D. On May 7, 2020, the City Manager issued an Administrative Order that suspended all time periods for land use related appeals, reviews, or automatic approvals starting March 11, 2020). The City Council ratified that Administrative Order via Resolution No. 12164, adopted June 3, 2020 (collectively, the “LATs Suspension”).

E. The LATs Suspension was taken in response to the ongoing COVID-19 Emergency for well-known reasons (e.g., cancellation of all public meetings; prohibition on mass gatherings; and closure of all public facilities).

F. The City Council intends that the LATs Suspension be part of the 2020 Program.

G. It is anticipated that the COVID-19 Emergency will end on or about March 31, 2022.

SECTION 2: Environmental Assessment. This Ordinance was reviewed pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”). Adopting this Ordinance is exempt from further environmental review because it establishes rules and procedures for operation of existing facilities; minor temporary use of land; minor alterations in land use; new

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2 construction of small structures; and minor structures accessory to existing commercial facilities. The Ordinance, therefore, is categorically exempt from further CEQA review under CEQA Guidelines §§ 15301; 15303, 15304(e); 15305; and 15311. Further, the adopting the ordinance is also exempt from review under CEQA pursuant to CEQA Guidelines § 15061(b)(3) because the ordinance is for general policies and procedure- making. It can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. Finally, this Ordinance is exempt from further review pursuant to CEQA Guidelines § 15269(a) because the protection of public and private property is necessary to maintain service essential to the public, health and welfare.1
SECTION 3: Planning Agency. Pursuant to MPMC § 2.56.020, the City Council will act as the Planning Agency.

SECTION 4: Incorporation by Reference. The City Manager’s Administrative Order dated May 7, 2020 is incorporated by reference as if fully set forth. In the event of any conflict between this Ordinance and the Administrative Order, this Ordinance takes precedence.

SECTION 5: Definitions.
“LATs Suspension” means the suspension of land use related time deadlines established by the City Manager’s May 7, 2020 Administrative Order commencing March 11, 2020 as ratified by Resolution No. 12164, adopted June 3, 2020. LATs Suspension includes, without limitation, times for filing applications; reviewing applications; automatic approvals of LUR; or appeals from decisions made by the City Planner, City Engineer, Public Works Director, Design Review Board, or Planning Commission, as applicable. “LATs Suspension Period” means the time period between March 10, 2020 and March 31, 2022.
“Land Use Related” or “LUR” means all land use applications or approvals set forth in MPMC Chapter 1.10; Title 20; and Title 21 regulating, without limitation, conditional use permits; subdivision maps; temporary use permits; design review; or building permits.

SECTION 6: LATs Suspension Period; Authorization. The City Manager, or designee, is authorized to determine identify LUR are subject to the LATs Suspension during the LATs Suspension Period and determine a reasonable time period for processing such LUR during the LATs Suspension Period in accordance with applicable law including, without limitation, the MPMC. To the extent practicable, the normal timelines applicable to such LUR should be used for such determinations. Notwithstanding the LATs Suspension Period, any decision made by the City Manager, or designee, in 1 CEQA findings regarding an anticipated imminent emergency are valid (see CalBeach Advocates v. City of Solana Beach (2002) 103 Cal.App.4th 529).

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3 accordance with this Ordinance must be appealed in accordance with the ordinary time periods established by the MPMC, or other applicable law.

SECTION 7: The City Council recognizes that California law including, without limitation, Melton v. City of San Pablo (1967) 252 Cal.App.2d 794 and In re Cindy B. v.

Eugene B. (1987) 192 Cal.App.3d 771, allows legislation to be retroactively applied when the legislative intent for such retroactivity is clear. The City Council specifically intends that this Ordinance be retroactively effective to March 10, 2020 in accordance with the LATs Suspension.

SECTION 8: Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.

SECTION 9: Enforceability. Amendment or repeal of any provision of any previously adopted Ordinance does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.

SECTION 10: Reliance on Record. Every one of the findings and determinations in this Ordinance are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.

SECTION 11: Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.

SECTION 12: Recording. The City Clerk, or duly appointed deputy, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Monterey Park’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

SECTION 13: Electronic Signatures. Pursuant to MPMC Chapter 3.95, this Ordinance may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

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4 SECTION 14: Effective Date. This Ordinance will become effective 30 days after its adoption and remain effective unless superseded or repealed.

PASSED, ADOPTED AND APPROVED this ____ day of March 2022.

Henry Lo, Mayor
ATTEST:
_______________________
Vincent D. Chang, City Clerk
APPROVED AS TO FORM:
_______________________
Karl H. Berger, City Attorney

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Staff Report
April 6, 2022
ATTACHMENT 2
March 16, 2022 Staff Report

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1 CEQA findings regarding an anticipated imminent emergency are valid (see CalBeach Advocates v. City of Solana Beach (2002) 103 Cal.App.4th 529).

City Council Staff Report
DATE: March 16, 2022
AGENDA ITEM NO: Public Hearing No. 4B
TO: The Honorable Mayor and City Council
FROM: Steve Sizemore, Interim Director of Community Development SUBJECT: Ordinance Establishing the Land Use Related Time Suspension Period Related to the COVID-19 Emergency.

RECOMMENDATION:

It is recommended that the City Council consider:
(1) Opening the public hearing;
(2) Receiving documentary and testimonial evidence;
(3) Closing the public hearing;
(4) Introducing and waiving first reading of an uncodified ordinance that ends the suspension of time deadlines for various land use related applications and approvals; and
(5) Taking such additional, related, action that may be desirable.

CEQA (California Environmental Quality Act):

The Ordinance itself and the actions anticipated by the Ordinance were reviewed pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”).

Based upon that review, this action is exempt from further review pursuant to CEQA Guidelines § 15269(a) because the protection of public and private property is necessary to maintain services essential to public, health and welfare. 1 Moreover, the Ordinance simply ratifies previously adopted emergency regulations and establishes a deadline for terminating such regulations. Such action does not constitute a “project” as defined by CEQA.

TYPE OF ACTION (LEGISLATIVE; QUASI-JUDICIAL; OR ADVISORY) Legislative: The recommended action is adoption of an uncodified Ordinance that retroactively approves suspension of various timelines undertaken pursuant to the 2020 Monterey Park Business Recovery Program in response to the COVID-19 Emergency and establishes a date by which such accommodation ends. In considering such actions, the City Council acts in its discretionary legislative capacity (formulating rules that apply

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Staff Report

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March 16, 2022
to all future cases). The City Council previously approved the timeline suspension via Resolution No. 12164, adopted June 3, 2020; the proposed Ordinance ensures that all applications, and other land use considerations, submitted between March 11, 2020 and March 31, 2022 are processed in accordance with the May 7, 2020 Administrative Order issued by the City Manager as ratified by Resolution No. 12164.

EXECUTIVE SUMMARY:

On May 7, 2020, the City Manager issued an Administrative Order that suspended all time periods for land use related appeals, reviews, or automatic approvals starting March 11, 2020 (collectively, the “Land Use Times” or “LATs”). That Administrative Order was subsequently ratified by the City Council via Resolution No. 12164, adopted June 3, 2020. Suspending the LAT was part of the City Council’s overall strategy that was encapsulated within the 2020 Monterey Park Business Recovery Program and implemented to assist businesses during the COVID-19 Emergency.

It is apparent that the COVID-19 Emergency is now ending. As the City emerges from emergency operations, it is in the public interest to bring some of the City Council’s emergency actions to an end and restore the “normal” operations for processing land use applications.

BACKGROUND:

Responding to the COVID-19 Pandemic, the City Manager declared a local emergency On March 11, 2020. That action was subsequently ratified by the City Council via Resolution No. 12142, adopted March 18, 2020 (the “COVID-19 Emergency”). Among other things, Resolution No. 12142 notes that the Governor proclaimed a statewide emergency on March 4, 2020. After being extended multiple times over the past two years, the statewide emergency will expire on March 31, 2022. Thereafter, the City Council will soon be asked to terminate the local emergency.

The City Manager and City Council utilized various emergency powers during the COVID-19 Emergency to protect public health, safety, and welfare. Among other things, the City Council adopted a series of uncodified ordinances as part of the 2020 Monterey Park Business Recovery Program (“Program”). Most of those regulations are now codified in the Monterey Park Municipal Code (“MPMC”).

One part of the Program that was not codified was the temporary suspension of the Land Use Times (described above). While the City Council did ratify the City Manager’s Administrative Order by Resolution No. 12164, the LAT are codified as part of the MPMC. Because City Hall was closed, most public meetings were cancelled, and the City was short-staffed, it made sense to temporarily suspend all LATs including, without limitation, those in MPMC Chapter 1.10 along with Titles 20 and 21. Generally, these LATs affect the time within which applications must be filed; are automatically approved; when appeals must be filed; and how long the City may take to review applications. Once the COVID-19 Emergency is terminated, however, the public interest in maintaining the LATs suspension will cease; the LATs within the MPMC (and California law) should then resume.

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Staff Report

Page 3 of 3 ends

March 16, 2022
Only a small number of land use files were affected by the LATs suspension. It is, however, desirable to clearly establish the time periods within which the LATs suspension affected applications. If adopted, therefore, the uncodified Ordinance would clarify such time periods. As stated in the draft Ordinance, these times periods are March 10, 2020 to March 31, 2022. This period is defined as the “Land Use Related Time Suspension Period.” Beginning April 1, 2022, all of the LATs set forth in the MPMC and California statute will be in full effect.

FISCAL IMPACT:

The proposed action will not have any foreseeable financial effects.

Respectfully submitted by:

Steve Sizemore
Interim Director of
Community Development
Approved by: Reviewed by:

Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT:

1. Draft Ordinance;

2. Resolution No. 12164, adopted June 3, 2020;

3. Administrative Order issued May 7, 2020.

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Staff Report
March 16, 2022
ATTACHMENT 1
Draft Ordinance

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1 ORDINANCE NO. ____

AN UNCODIFIED ORDINANCE ESTABLISHING THE LAND USE
RELATED TIME SUSPENSION PERIOD RELATED TO THE COVID-19
EMERGENCY.

The City Council of the City of Monterey Park does ordain as follows:

SECTION 1: The City Council finds as follows:

B. During the COVID-19 Emergency, the City Council adopted a series of regulations which are, collectively, identified as the 2020 Monterey Park Business Recovery Program (the “2020 Program”).

F. The City Council intends that the LATs Suspension be part of the 2020 Program.

G. It is anticipated that the COVID-19 Emergency will end on or about March 31, 2022.

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3 accordance with this Ordinance must be appealed in accordance with the ordinary time periods established by the MPMC, or other applicable law.

SECTION 7: The City Council recognizes that California law including, without limitation, Melton v. City of San Pablo (1967) 252 Cal.App.2d 794 and In re Cindy B. v.

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4 SECTION 14: Effective Date. This Ordinance will become effective 30 days after its adoption and remain effective unless superseded or repealed.

PASSED, ADOPTED AND APPROVED this ____ day of March 2022.

Henry Lo, Mayor
ATTEST:
_______________________
Vincent D. Chang, City Clerk
APPROVED AS TO FORM:
_______________________
Karl H. Berger, City Attorney

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Staff Report
March 16, 2022
ATTACHMENT 2
Resolution No. 12164, adopted June 3, 2020

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RESOLUTION NO. 12164

A RESOLUTION ADOPTED BY THE CITY COUNCIL FOR THE CITY OF

MONTEREY PARK RATIFYING CERTAIN ACTIONS COMPLETED BY THE CIry MANAGER AND EXTENDING THE EXISTENCE OF A LOCAL
EMERGENCY.

BE lT RESOLVED by the Council of the City of Monterey Park as follows SECTION 1:The City Council finds as follows
Responses to the COVID-19 Pandemic have occurred on nearly a daily basis since March 11,2020 which is when the City Manager declared a local emergency to exist.

The City Council last ratified actions implemented by the City Manager via Resolution No. 1 2151 adopted on April 1 5, 2020. Since that time, the City Manager has taken additional actions needed to respond to the COVID-19 Pandemic.

While the Governor's March 4,2020, Proclamation of Emergency (see paragraph 8) suspended the requirement for reports under Government Code S 8630, it is prudent for the City Council to be provided an update regarding the City's actions during this emergency and to ratify them..

SECTION 2: The City Council reviewed the state of the community and continues to extend the COVID-19 Pandemic emergency. The actions set taken by the City Manager in attached Exhibit "A," and incorporated by reference, are ratified and approved.

SECTION 3: This Resolution supplements Resolution No. 12151and confirms the ongoing COVID-19 Pandemic emergency. This local emergency will continue to exist until othenruise determined by California law and City Council Resolution.

SECTION 4: This Resolution will take effect immediate ly upon adoption PASSED AND ADOPTED this 3rd day of June 2020
ATTEST
A.

B
c
Vincent D. Chang, City Clerk
Hans Liang, Mayor

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Resolution No. 12164

Page 2 of 2 ends

APPROVED AS TO FORM
NHtPuis c.LwRPYWtWPUT AA WW
Attachments:

Exhibit A: Emergency Policies and Procedures
State of California )
County of Los Angeles ) ss.

City of Monterey Park )
l, Vincent D. Chang, City Clerk of the City of Monterey Park, California, do hereby certify that the foregoing Resolution No. 12164 was duly and regularly adopted by the City Council of the City oi Monterey Park at a meeting held on the 3'd day of June 2020, by the following vote:

Ayes:

Noes:

Absent:

Abstain
Council Members: Yiu, Lo, Sornoso, Chan, Liang
Council Members: None
Council Members: None
Council Members: None
Dated this 3'd day of June, 2O2O
Vincent D. Chang, City Clerk
Monterey Park, California
Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code 516.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

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EXHIBII A
Effective March 11,2020 City Manager extends deadlines for application review, automatic approvals, and appeal deadlines, for all land use, subdivision and zoning applications.
a
a
City Manager orders all parking lots at park sites closed.

City Manager orders specific park amenities closed at parks, but open space areas to remain open for exercise.

City Manager orders Help Desk operations by moved from the Management Services Department to the Library Services Department. . City Manager orders temporary emergency policies implemented for employees. r City Manager orders Social Distancing Protocols be posted at all City facilities as required by the County of Los Angeles Department of Public Health. . City Manager orders Monterey Park recovery and reopening plan be prepared. r Police Chief orders street sweeping to resume May 18 and orders notice to residents.

City Manager orders execution of a contract amendment with l-Build for City Hall lobby modification.

City Manager cancels all City sponsored events through August 2020.

City Manager orders opening of Edison Trails on May 8.

City Manager orders workspaces to be moved and adjusted to provide social distance for employees.

City Manager orders COVID-19 resource guide to be published in May issue of the Cascades.

City Manager modifies employee travel restrictions and quarantine period and defers to the Los Angeles County Department of Public Health recommendations.

I
t
a
a
a
a
I
a
City Manager orders resumption of public meetings via virtual means.

City Manager implements City Council surplusage of three fire apparatus via donation.

Page 1 of 2 ends

Page 37 of 278 ends

a
a
a
City Manager orders tennis and pickleball courts using the protocols issued by LA County Public Health Official.

City Manager orders Farmers Market to reopen on Thursdays from 5pm - 9pm using the protocols issued by LA County Public Health Official.

City Manager authorizes the accepting of permits for the sale of Safe and Sane Fireworks.

City Manager authorizes the opening of the Library for curbside pickup in June.

Page 2 of 2 ends

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Staff Report
March 16, 2022
ATTACHMENT 3
Administrative Order issued May 7, 2020

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CITY OF MONTEREY PARK
City Manager's Office

ADMINISTRATIVE ORDER RELATED TO
MARCH 11,2020 DECLARATION OF EMERGENCY
The City Manager finds
Pursuant to Monterey Park Municipal Code S 2.52.060(aX1), a local emergency was proclaimed to exist within the City of Monterey Park on March 11, 2020 which was confirmed by City Council Resolution No. 12142. Resolution No. 12142 was further extended by Resolution No. 12151 (adopted on April 15, 2020).

Given the impacts of COVID-19 on the City and its residents, certain City deadlines would be impractical or impossible to adhere to. The operations of numerous City offices and departments, including offices and departments responsible for processing land use, subdivision and zoning applications have been disrupted and employees have been displaced. lt is necessary to suspend automatic approval deadlines, including appeal deadlines, for all land use subdivision and zoning applications.

Accordingly, all provisions of the Monterey Park Municipal Code including, without limitation, Chapter 1.10; and Titles 20 and 21, establishing time periods for appeals, reviews, or authorizing automatic approvals, are suspended for the duration of the existing local emergency.

This Order is intended to have retroactive effect to March 11, 2020. For application review and automatic approval deadline purposes, all land use, subdivision and zoning applications that were either on-file with the City on March 10,2020, or filed with the City after March 11,2020, but during the period of emergency, will be considered filed on the first working day following expiration of the local emergency. Staff will use due diligence in communicating with residents, applicants, developers, and the public with regard to pending deadlines and how the City will implement and interpret the provisions of this Order.

City Manager
Dateffime
Qt

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City Council Staff Report
DATE: April 6, 2022
AGENDA ITEM NO:

TO: The Honorable Mayor and City Council
FROM: Inez Alvarez, Assistant City Manager
Xochitl Tipan, Principal Management Analyst
SUBJECT: Waive Further Reading and Adopt an Ordinance Amending various sections of Monterey Park Municipal Code Chapter 6. 15 regulating mandatory organic waste disposal reduction
RECOMMENDATION:

It is recommended that the City Council consider:

1. Waiving the second reading and adopting the proposed ordinance; and/or

2. Taking such additional, related, action that may be desirable.

EXECUTIVE SUMMARY:

The Ordinance was introduced and received first reading at the March 16, 2022 City Council meeting. The original staff report, from March 16, 2022, is attached for reference.

Second reading and adoption of this Ordinance is recommended. If adopted, the Ordinance will take effect in 30 days
Respectfully submitted by: Prepared by:

Inez Alvarez,
Assistant City Manager
Xochitl Tipan
Principal Management Analyst
Approved by: Reviewed by:

Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT:

1. Draft Ordinance

2. March 16, 2022 Staff Report
Consent Calendar - 3C

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Staff Report
April 6, 2022
ATTACHMENT 1
Draft Ordinance

Page 42 of 278 ends

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CITY OF MONTEREY PARK
ORDINANCE NO. _____

AN ORDINANCE AMENDING VARIOUS SECTIONS OF
MONTEREY PARK MUNICIPAL CODE CHAPTER 6.15

REGULATING MANDATORY ORGANIC WASTE DISPOSAL

REDUCTION
The City Council of the City Of Monterey Park does Ordain as follows:

SECTION 1. Monterey Park Municipal Code (“MPMC”) § 6.15.020 is amended to add the terms “Co-collection”; “Co-collected”; “Co-collected Solid Waste”; “Recyclable Materials” or “Recyclables”; and to amend the terms “Gray Container Waste”; “Single-Family”; “Source Separated Green Container Organic Waste”; and “Source Separated Recyclable Materials” to read as follows:
“* * *
"Co-collection" and “Co-collected” mean the collection of solid waste and recyclable materials in a common Gray Container, which may be a Bin or Cart.
“Co-collected Solid Waste” means solid waste and recyclable materials collected in a common Gray Container, and does not include “Organic Waste” as that term is defined in § 18982(a)(46).
* * *
“Gray Container Waste” means Solid Waste and Co-collected Solid Waste that is collected in a Gray Container that is part of a two or three-container Organic Waste collection service that prohibits the placement of Organic Waste in the Gray Container as specified in § 18984.1(a) and (b), or as otherwise defined in § 17402(a)(6.5).
* * *
"Recyclable Materials” or "Recyclables" means a non-organic material which can be reused or processed into a form suitable for reuse through reprocessing or remanufacture, and includes glass, aluminum, PET and other plastics, beverage containers, phone books, and such other materials designated by the City.
* * *
“Single-Family” means of, from, or pertaining to any residential premises with consisting of a single dwelling unitfewer than five units.

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City of Monterey Park
Ordinance No. ____

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“Source Separated Green Container Organic Waste” means Source Separated Organic Waste that can be placed in a Green Container that is specifically intended for the separate collection of Organic Waste by the generator, excluding Non-organic Recyclables, as defined in § 18982(a)(43). Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles.

“Source Separated Recyclable Materials” means Source Separated Non - Organic Recyclables. and Source Separated Blue Container Organic Waste.

SECTION 2: MPMC § 6.15.030(C) is amended to read as follows:

“C. Generators must

1. Place Source Separated Green Container Organic Waste, including Food Waste, in the Green Container; and

2. Place Source Separated Recyclable Materials in the Blue Container; and

3.2. Place Gray Container Waste in the Gray Container.”

SECTION 3: MPMC § 6.15.040(A) and (D)(1) and (2) are amended to read as follows:

“* * *

A. Except as provided for Self-Haulers, all generators that are Commercial Businesses or Multi-Family Residential Dwellings must subscribe to City’s two or three container collection services and comply with requirements of those services as described below.

* * *

1. Place Source Separated Green Container Organic Waste, including Food Waste, in the Green Container, or place materials designated for the Green Container or the Blue Container in the Gray Container;

2. If provided with three-container collection service, Pplace Source Separated Recyclable Materials in the Blue Container; and

* * *”

SECTION 4: MPMC § 6.15.090(A) is amended to read as follows:

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City of Monterey Park
Ordinance No. ____

Page 3 of 4 ends

“* * *

A. An Exclusive or Non-exclusive Franchised Hauler providing residential, Commercial, or industrial Organic Waste collection services to generators within the City’s boundaries must meet the following requirements and standards as a condition of approval of a contract, agreement, or other authorization with the City to collect Organic Waste:

* * *”

SECTION 3. Environmental Review. This Ordinance was reviewed pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., “CEQA”) and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the “CEQA Guidelines”). Based upon that review, this Ordinance is exempt from further review pursuant to CEQA Guidelines §15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment.

SECTION 4. Electronic Signatures. This Ordinance may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.

SECTION 5. Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.

SECTION 6. Enforceability. Repeal or amendment of any provision of the MPMC will not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.

SECTION 7. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the city council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.

SECTION 8. Recording. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the city of Monterey Park’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

SECTION 9. Execution. The Mayor, or presiding officer, is authorized to affix his

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City of Monterey Park
Ordinance No. ____

Page 4 of 4 ends

signature to this Ordinance signifying its adoption by the City Council of the City of Monterey Park, and the City Clerk, or duly appointed deputy, is directed to attest thereto.

SECTION 10. Effectiveness. This Ordinance will take effect on the 30th day following its final passage and adoption.

Dated this ___ day of April, 2022.

____________________________
Henry Lo, Mayor

ATTEST:

_________________________
Vincent D. Chang, City Clerk

APPROVED AS TO FORM:

__________________________
Karl H. Berger, City Attorney

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Staff Report
April 6, 2022
ATTACHMENT 2
March 16, 2022 Staff Report

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City Council Staff Report
DATE: March 16, 2022
AGENDA ITEM NO: New Business No. 5A
TO: The Honorable Mayor and City Council
FROM: Inez Alvarez, Assistant City Manager
Xochitl Tipan, Principal Management Analyst
SUBJECT: Amendment to various sections of Monterey Park Municipal Code Chapter 6.15 regulating mandatory organic waste disposal reduction RECOMMENDATION:

It is recommended that the City Council consider:

1. Introducing and waiving first reading of an Ordinance amending various sections of Monterey Park Municipal Code (“M PMC”) Chapter 6.15 regulating mandatory organic waste disposal reduction; and

2. Taking such additional, relat ed, action that may be desirable.

EXECUTIVE SUMMARY:

Senate Bill 1383 (SB 1383) requires local jurisdic tions to implement Short-lived Climate Pollutants: Organic Waste Reduction regulations as set forth by the California Department of Resources and Recovery (CalRecycle). On December 1, 2021 the City adopted Ordinance No. 2216 adding Chapter 6.15 to the to the Monterey Park Municipal Code (MPMC) that provides the requirements for collection and recycling of organic waste to comply with the law.

Staff requests to amend Chapter 6.15 to add def initions and provide clarification to the City’s types of collection systems.

BACKGROUND:

Chapter 6.15 of the M onterey Park Municipal Code prov ides requirements for collection and recycling of organic waste to comply with state law. The proposed amendment is mainly to clarify definitions and add terms.

Specifically the changes would add the term s “Co-collection;” “Co-collected;” “Co- collected Solid Waste;” “Recyclable Mate rials” or “Recyclables” and amend the terms “Gray Container Waste;” “Single-Family;” “Source Separated Green Container Organic Waste;” and “Source Separated Recyclable Materials.”
Additionally, sections 6. 15.030, 6.15.040, and 6.15.090 w ould be amended to provide clarification on the types of collection service that the City provides, including use of two

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Staff Report

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March 16, 2022
or three-container collection systems and use of exclusive or non-exclusive franchised hauler for residential, commercial, or industrial Organic Waste collection services.

FISCAL IMPACT:

Adopting the Ordinance, by itself, has no fiscal impact.

Respectfully submitted by: Prepared by:

Inez Alvarez,
Assistant City Manager
Xochitl Tipan
Principal Management Analyst
Approved by: Reviewed by:

Ron Bow
City Manager
Karl H. Berger
City Attorney
ATTACHMENT:

1. Draft Ordinance

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Staff Report
March 16, 2022
ATTACHMENT 1
Draft Ordinance

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CITY OF MONTEREY PARK

ORDINANCE NO. _____

AN ORDINANCE AMENDING VARIOUS SECTIONS OF
MONTEREY PARK MUNICIPAL CODE CHAPTER 6.15

REGULATING MANDATORY ORGANIC WASTE DISPOSAL

REDUCTION

The City Council of the City Of Monterey Park does Ordain as follows:

“* * *

"Co-collection" and “Co-collected” mean the collection of solid waste and recyclable materials in a common Gray Container, which may be a Bin or Cart.

“Co-collected Solid Waste” means solid waste and recyclable materials collected in a common Gray Container, and does not include “Organic Waste” as that term is defined in § 18982(a)(46).

* * *

“Gray Container Waste” means Solid Waste and Co-collected Solid Waste that is collected in a Gray Container that is part of a two or three-container Organic Waste collection service that prohibits the placement of Organic Waste in the Gray Container as specified in § 18984.1(a) and (b), or as otherwise defined in § 17402(a)(6.5).

* * *

"Recyclable Materials” or "Recyclables" means a non-organic material which can be reused or processed into a form suitable for reuse through reprocessing or remanufacture, and includes glass, aluminum, PET and other plastics, beverage containers, phone books, and such other materials designated by the City.

* * *

“Single-Family” means of, from, or pertaining to any residential premises with consisting of a single dwelling unitfewer than five units.

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City of Monterey Park
Ordinance No. ____

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“Source Separated Recyclable Materials” means Source Separated Non - Organic Recyclables. and Source Separated Blue Container Organic Waste.

SECTION 2: MPMC § 6.15.030(C) is amended to read as follows:

“C. Generators must

1. Place Source Separated Green Container Organic Waste, including Food Waste, in the Green Container; and

2. Place Source Separated Recyclable Materials in the Blue Container; and

3.2. Place Gray Container Waste in the Gray Container.”

SECTION 3: MPMC § 6.15.040(A) and (D)(1) and (2) are amended to read as follows:

“* * *

* * *

2. If provided with three-container collection service, Pplace Source Separated Recyclable Materials in the Blue Container; and

* * *”

SECTION 4: MPMC § 6.15.090(A) is amended to read as follows:

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City of Monterey Park
Ordinance No. ____

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“* * *

* * *”

SECTION 9. Execution. The Mayor, or presiding officer, is authorized to affix his

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City of Monterey Park
Ordinance No. ____

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signature to this Ordinance signifying its adoption by the City Council of the City of Monterey Park, and the City Clerk, or duly appointed deputy, is directed to attest thereto.

SECTION 10. Effectiveness. This Ordinance will take effect on the 30th day following its final passage and adoption.

Dated this ___ day of April, 2022.

____________________________
Henry Lo, Mayor

ATTEST:

_________________________
Vincent D. Chang, City Clerk

APPROVED AS TO FORM:

__________________________
Karl H. Berger, City Attorney

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City Council Staff Report
DATE: A
pril 6, 2022
AGENDA ITEM NO:

TO: The H
onorable Mayor and City Council
FROM: Martha Garcia, Director of Management Services
SUBJECT: 2020-2021 Annual Comprehensive Financial Report RECOMMENDATION:

It is recommended that the City Council consider:

1. Receiving and filing the City’s 2020-2021 Annual Comprehensive Financial Report (ACFR); and

2. Taking such additional, related, action that may be desirable.

EXECUTIVE SUMMARY:

The City’s auditor, CliftonLarsonAllen LLP (CLA), an independent auditor and one of the nation’s leading CPA firms, completed the audit of the City’s annual financial statements for the fiscal year ending June 30, 2021. The audited financial statements are incorporated into an ACFR.

This
is the 6 th year, CLA audited the City’s financial records. The auditor issued an unmodified (“clean”) opinion on the City’s financial statements. An unmodified opinion indicates that the financial data of the City is fairly presented in accordance with accounting principles generally accepted in the United States of America (or “GAAP”) and the standards applicable to the financial audits contained in Government Audit Standards, issued by the Comptroller General of the United States. These standards require that the auditors plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement and accurately reflects the City’s financial position. Additionally, the auditors’ report does not indicate any negative findings, internal control deficiencies or instances of noncompliance with applicable laws and regulations.

BACKGROUND:

ACFR includes the financial information for all funds of the City. The Introductory Section of the report includes a table of contents, the organization chart, a transmittal let ter, and financial awards. The Financial Section contains the independent auditor’s report, the management discussion and analys is (MD&A), the financial statements, notes to the financial statements, and supplementary information. The Statistical Section provides trend financial and demographic data, which is useful for assessing the City’s financial condition. Users of the ACFR should read the financial statements in conjunction with the Consent Calendar - 3D

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Staff Report

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April 6, 2022
transmittal letter, MD&A, notes, and supplementary information to gain a full
understanding of the City’s financial activities.

The City’s ACFR was prepared according to the Governmental Accounting Standard Board (GSAB) Statement, and the government -wide financial statements provide information about the City’s overall financial status with the addition of long-term per
spective. The focus is on the City, as a whole organization, providing a comprehensive presentation of the City’s financial information from a commercial (private) business point of view. Full accrual accounting and information for capital assets (including infrastructure) and long-term obligations are required as part of the financial statements.

The City’s ACFR is submitted to the Government Financial Officer’s Association of the United States and Canada (GFOA) for consideration of Award of the Certificate of Achievement for Excellence in Financial Reporting. To receive the award, a government must publish an efficiently organized report that satisfies both GAAP and applicable laws and regulations. The City has received this award for 31 consecutive years and staff has again submitted the 2020-2021 ACFR for award consideration.

On June 30, 2021, the City’s net position totaled $32.5 million in the Statement of Net Position, reflecting total assets and deferred outflow of resources for $349.4 million, and liabilities and deferred inflow of resources for $3 16.9 million. Net position serves as an indicator of a government’s financial position over time. The City’s financial results displayed a positive financial position.

On June 30, 2021, The City’s governmental funds reported combined fund balances of $55.9 million, which is a decrease of $7.8 million or 6.4%, from $59.7 million on June 30, 2020. Among all governmental funds, General Fund is a major governmental fund and the most important fund of the City. General Fund’s fund balance has decreased $ .4 million or 4.4%, from $36.7 million as of June 30, 2020 to $35.1 million as of June 30, 2021.

General Fund revenues have slightly rebounded from the COVID-19 pandemic and have increased $2.0 million or 4.6%, from $43.4 million on June 30, 2020, to $45.4 million on June 30, 2021. The increase was primarily due to a strong performance of property tax and sales tax. General Fund expenses and other financing sources/(uses) increased $2.4 million or 5.5% from $43.4 million on June 30, 2020 to $ 45.8 million on June 30, 2021.

The increase was attributed to the increased capital outlay expenditures in fiscal year 20- 21 on the various CIP projects, e.g., the construction of Fire Station 62.

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April 6, 2022
The following table details the General Fund balances
br
eakdown:

GF Fund Balances as of June 30, 2021
Non-spendable:

Advances to Other Funds $ 72,590
Committed:

Catastrophic Event $ 4,340,000
Working Capital 3,000,000
Economic Development (2002 Bonds
Proceeds) 1,886,927
Total Committed $ 9,226,927
Assigned:

Carryover POs and Capital Improvements $ 20,888,726 Employee Parking Lot 529,511
Total Assigned $ 21,418,237
Total Unassigned $ 4,419, 338
Total GF Fund Balances $ 35,137,092
The $3

5.1 million fund balance of the General Fund as of June 30, 2021, was comprised of $73,000 non- spendable, $9.2 million committed, $21.4 million assigned and $4.3 million unassigned.

Ot
her financial highlights in 2020-2021 included that:
• Com
pleted construction of Fire Station 62;
• Replacement of the Barnes Park playground and addition of a new fitness court; • Completed the Garvey Reservoir drainage improvements; • The Courtyard by Marriott hotel that includes 288 rooms, a restaurant and available retail space, completed construction and opened services.

FISCAL IMPACT:

There is no fiscal impact associated with this action.

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April 6, 2022
Respectfully submitted by:

Martha Garcia
Director of Management Services
Approved by:

City Manager
ATTACHMENT:

Prepared by:
�Wong
Financial Services Manager
Reviewed
er
y

1. 2020-2021 Annual Comprehensive Financial Report

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Staff Report
April 6, 2022
ATTACHMENT 1
2020-2021 Annual Comprehensive
Financial Report

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ANNUAL COMPREHENSIVE

FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

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City of Monterey Park, California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

Year ended June 30, 2021

Prepared by the Management Services Department

Martha Garcia
Director of Management Services

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CITY OF MONTEREY PARK

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

INTRODUCTORY SECTION (UNAUDITED)

TABLE OF CONTENTS I

MONTEREY PARK CITY OFFICIALS V

ORGANIZATION CHART VI

LETTER OF TRANSMITTAL VII

GFOA CERTIFICATE OF ACHIEVEMENT XIII

GFOA DISTINGUISHED BUDGET PRESENTATION AWARD XIV

CSMFO CERTIFICATE OF AWARD FOR EXCELLENCE IN OPERATIONAL

BUDGETING XV

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT DISCUSSION AND ANALYSIS 5

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 20
STATEMENT OF ACTIVITIES 22

FUND FINANCIAL STATEMENTS
BALANCE SHEET – GOVERNMENTAL FUNDS 26

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION OF GOVERNMENTAL ACTIVITIES 28

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 29

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 31
STATEMENT OF NET POSITION - PROPRIETARY FUNDS 34

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS 36
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS 38

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CITY OF MONTEREY PARK

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

ii
STATEMENT OF FIDUCIARY NET POSITION 42
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 43
NOTES TO BASIC FINANCIAL STATEMENTS 45

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
CALPERS AND MMRP PENSION PLANS 100

SCHEDULES OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS 100
SCHEDULE OF CONTRIBUTIONS 103

OTHER POST EMPLOYMENT BENEFIT (OPEB) PLAN
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS 106 SCHEDULE OF CONTRIBUTIONS 107

BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 108
SPECIAL REVENUE GRANTS FUND 109
SPECIAL REVENUE RETIREMENT/PENSION LIABILITY FUND 110
SPECIAL REVENUE HOUSING FUND 111
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 112

SUPPLEMENTARY INFORMATION

NONMAJOR FUNDS
DESCRIPTION OF NONMAJOR GOVERNMENTAL FUNDS 114
COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 116

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 120

NONMAJOR SPECIAL REVENUE FUNDS - BUDGETARY COMPARISON

SCHEDULES
PROPOSITION A 124
GAS TAX 125
BIKE ROUTE 126
PROPOSITION C 127
AIR QUALITY IMPROVEMENT 128
ASSET FORFEITURE 129

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CITY OF MONTEREY PARK

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

iii
PARKS/LIBRARY/FACILITIES DIF 130
BUSINESS IMPROVEMENT AREA #1 131
MAINTENANCE DISTRICT 93-1 132
LAW ENFORCEMENT/FIRE/MEDIC DIF 133
PUBLIC SAFETY AUGMENTATION 134
MEASURE R 135
CIRCULATION DIF 136
CERCLA LIABILITY 137
SB1-RMRA 138
MEASURE M 139

WATER UTILITY ENTERPRISE FUND
DESCRIPTION OF WATER UTILITY ENTERPRISE FUND 141
COMBINING SCHEDULE OF NET POSITION 142

COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 143
COMBINING SCHEDULE OF CASH FLOWS 144

INTERNAL SERVICE FUNDS
DESCRIPTION OF INTERNAL SERVICE FUNDS 145
COMBINING SCHEDULE OF NET POSITION - INTERNAL SERVICE FUNDS 146

COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - INTERNAL SERVICE FUNDS 148
COMBINING SCHEDULE OF CASH FLOWS - INTERNAL SERVICE FUNDS 150

STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENTS 154
CHANGES IN NET POSITION 156
FUND BALANCES OF GOVERNMENTAL FUNDS 160
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 162
ASSESSED VALUE OF TAXABLE PROPERTY 164
DIRECT AND OVERLAPPING PROPERTY TAX RATES 165
PRINCIPAL PROPERTY TAXPAYERS 167

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CITY OF MONTEREY PARK

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

iv
PROPERTY TAX LEVIES AND COLLECTIONS 169
RATIOS OF OUTSTANDING DEBT BY TYPE 171
RATIOS OF GENERAL BONDED DEBT OUTSTANDING 173
DIRECT AND OVERLAPPING DEBT 174
LEGAL DEBT MARGIN INFORMATION 176
DEMOGRAPHIC AND ECONOMIC STATISTICS 178
PRINCIPAL EMPLOYERS 179
CITY EMPLOYEES BY FUNCTION 181
OPERATING INDICATORS BY FUNCTION 182
CAPITAL ASSET STATISTICS BY FUNCTION 184

WATER DISTRICT SCHEDULES FOR REVENUE CAPACITY (UNAUDITED) WATER SOLD BY TYPE OF CUSTOMER 186
WATER RATES 188
TOP TEN WATER CUSTOMERS 189

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MONT

EREY PARK CITY OFFICIALS

CITY COUNCIL
Yvonne Yiu, Mayor
Henry Lo, Mayor Pro Tem
Fred Sornoso Hans Liang Peter Chan
Council Member Council Member Council Member

ELECTED OFFICIALS
Vincent D. Chang, City Clerk
Joseph Leon, City Treasurer

EXECUTIVE TEAM
Ron Bow….……………………………………………………………………………………………..City Manager Inez Alvarez……………………………………………………………………………..Assistant City Manager Karl H. Berger………………………………………………………………………………………….City Attorney Kelly Gordon………………………………………………………………………………………………Police Chief Matt Hallock…………………………………………………………………………………………………Fire Chief Martha Garcia………………………………………………………….Director of Management Services Christine Tomikawa………………………….Director of Human Resources/Risk Management Frank Lopez…………………………..………………………..Director of Public Works/City Engineer Steve Sizemore………………………………………Interim Director of Community Development Robert Aguirre…………………………………………Director of Recreation/Community Services Diana Garcia……………………………………………………………………………………………City Librarian v

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Monterey Park
Citizens
City Clerk
Mayor &
City Council
City Manager
*Economic Development
*Successor Agency
*Business Improvement Area
Police
Department
*Police Administration
*Traffic Bureau
*Field Services
*Investigations
*Animal Services
*Communications
*Jail
*Records
*Computer Services
*Community Engagement
Fire
Department
*Fire Administration
*Fire Prevention
*Emergency Operations
*Emergency Medical Services
*Comm. Risk Reduction
*Code Enforcement
Human Resources & Risk
Management
*Human Resources
*Risk Management
Management
Services
*Finance
*Data Processing
*Community Housing Assist.
*Revenue Collection
*Central Support Services
*Communication/Duplication
M.P. Bruggemeyer Library
*Library Administration
*Reference & Adult
Services
*Technical Services
*Circulation
*Literacy
*Children Services
Public Works
*Community Transportation
*Street Maintenance & Street Cleaning
*Storm Drain Maintenance
*Sanitary Sewer Maintenance
*Traffic Control & Street Lighting
*Refuse Collection
*Building Maintenance
*Motor Pool Shop
*Engineering
*Planning, Building & Safety
*Parks & Parkway Maintenance
*Water & Wells
Recreation &
Community Services
*Facilities Supervision
*Aquatics
*Langley Center
*Childcare Activities
*Recreation Activities
*Community Participation
*Media Production
*Community Transportation
Boards &
Commissions
City Attorney
City
Treasurer
City of
Monterey Park
Organization
Chart
vi

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vii

CITY OF MONTEREY PARK

320 West Newmark Avenue  Monterey Park  California 91754-2896 www.MontereyPark.ca.gov City Council
Peter Chan
Hans Liang
Henry Lo
Fred Sornoso
Yvonne Yiu

City Clerk
Vincent D. Chang

City Treasurer
Joseph Leon
March 23 2022

To the Honorable Mayor, Members of the City Council and the Citizens of the City of Monterey Park, California State law requires that all general‐purpose local governments publish annually a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP), as promulgated by the Government Accounting Standards Board (G ASB) and
audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. The City obtained approval from the Government Finance Officers Association (GFOA) to publish at eight months of close of fiscal year due to COVID‐19 related circumstances.

Therefore, we hereby submit, for your information and re view, the Annual Comprehensive Financial Report for the City of Monterey Park, California, for the fiscal year ended June 30, 2021.

This report consists of management’s representations concerning the finances of the City of Monterey Park. Consequently, management assumes full responsibility for the completeness and reliability of all the information pres
ented in this report. To provide a reasonable basis for making these representations, management has established an internal control system that is designed to protect City assets and to ensure that the accounting records provide a reliable basis for the preparation of the financial statements. Because the cost of internal control should not exceed anticipated ben
efits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements will be free of any material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material res
pects.

The City’s financial statements have been audited by CliftonLarsonAllen LLP, a public accounting firm fully licensed and qualified to perform audits of the State and local governments within the State of California. The goal of the independent audit was to provide reasonable assurance that the financial statements of th
e City of Monterey Park for the fiscal year ending June 30, 2021, fairly state the City's financial position. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall fina
ncial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Monterey Park’s 2020‐21 financial statements are fairly presented in conformity with generally accepted accounting principles (GAAP). The independent auditors’ report is present ed as the first component of the financial section of this report.

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viii
Single Audit

Being a recipient of federal funds, the City is required to undergo an audit in accordance with the Single Audit Act of 1996 and the U.S. Office of Management and Budget Circular A‐133. Information relating to the single audit, which includes the federal assistance operations as well as the non‐ fed
eral assistance operations, such as the City's financial statements, internal controls, and compliance with legal requirements involving the administration of Federal awards, will be issued in a separate Single Audit Report.

Management Discussion & Analysis
A narrative introduction, overview, and analysis accompany the basic financial statements in the form of Management's Discussion an
d Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City's MD&A immediately follows the independent auditor's report in the financial section of the CAFR.

Profile of the City of Monterey Park

The City of Monter ey Park was incorporated in 1916 as a general law city. The name of "Monterey Park" was taken from old government maps that described the oak‐covered inclines that made up the area as Monterey Hills. The City operates under the council‐manager form of municipal government. The City Council, which consists of fiv e members, is elected by five districts, one representing each of the five districts, and each serves a term of four years. The City Clerk and the City Treasurer are also elected by the citizens. The City Ordinance 2096 imposes term limits, no more than two consecutive terms, on all elected officials . The City Council appoints the City Manager, who has the responsibilities of overseeing City services and operations. In addition to governing the City, the City Council serves as the governing board of the Public Financing Authority and the Housing Authority. The financial information of these component units has bee n included with the City. Please see Note 1 to Financial Statements for discussion of the component units.

Monterey Park is a full‐service City, offering its residents a wide range of municipal services, including public safety, highways and streets, sanitation, water and sewer services, development and public infrastructure improvements, culture and leisure programming, and general government functions. The City strives to provide high‐quality public services that emphasize organizational efficiency, infrastructure investm
ent, and economic development. In 2017, the City was listed as one of the top three best places to live in America by the Money Magazine.

Local Economic Condition

Monterey Park is located six miles east of Los Angeles at the western gateway to the San Gabriel Valley. It encompasses an area of 7.7
3 square miles with a population of approximately 61,000.

Monterey Park is primarily a residential community, with 78% of its land zoned for single and multiple family housing. In 2020‐21, The median sales price of detached single‐family homes in Monterey Park is $720,000. This median sales price is 6% above the FY2019‐20 median sales price of $678,000. Because of its desirabl
e location, house values in Monterey Park are expected to remain strong.

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ix
The COVID‐19 pandemic continued to bring unprecedented economic and social challenges in fiscal year 2020‐21. Overall, the City experienced revenue losses over $8.3 million during calendar year 2020. Recent increases observed in sales tax and transient occupancy tax revenues indicate that the economy is recovering from the financial impacts of COVID‐19. However, with conti nued supply chain issues and the public’s hesitancy towards travel, the economy still has a way to go to return to pre‐pandemic levels.

Through the Federal American Rescue Plan (ARPA), the City was allocated $15.0 million for COVID‐ 19 pandemic recovery efforts. Half of the City’s allocation was recei ved in fiscal year 2020‐21 with the remaining amount to be received in summer 2022. As the economy continues to recover from the uncertainty of COVID‐19, the City deployed its first ARPA distribution towards governmental services aiding the community’s recovery, including rehiring part‐time and full‐time st aff to its pre‐ pandemic levels, investing in public safety and cyber security.

Financial Overview and Policies

For 2020‐21, the City continued the reporting requirement per Governmental Accounting Standards Board (GASB) Statement No. 68 and 71, for pension liabilities. The City also continued the reporting for GASB Statement No
. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for other postemployment benefits liabilities on the face of the Statement of Net Position. Excluding all postemployment benefits (pensions and OPEB) liabilities, the City's end of year financial condition for 2020‐21 displayed a positive operating position due to the City's conse
rvative financial planning and management. As the City’s development projects continue to expand and move forward that will generate a large number of new jobs and tax revenues for the City.

The annual budget serves as the foundation for the City’s financial planning and control. The City starts its budget process in Februa
ry. The budget development is based on the City's three‐year citywide goals:

 Create a cleaner and more attractive City
 Enhance community and neighborhood development
 Ensure quality customer service
 Focus on Redevelopment
 Improve and develop the City’s infrastructure
 Improve services through the effe ctive use of technology  Practice sound fiscal management
 Live within our means while investing in the future
 Invest in the City’s employees through development and recognition

These goals serve as the guidelines to identify community priorities and effectively align resources to achieve our mission. Th
e City Manager presents the proposed budget to the City Council for review prior to the beginning of each fiscal year and the City Council holds public hearings to review and approve the proposed budget. The final adopted budget, reflecting the City Council's directions, is published no later than June 30.

Legal bu
dgetary control for operating budgets is exercised at the department and fund level. The City is required to adopt a balanced budget for its General Fund at the beginning of the fiscal year.

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x
Formal budgetary integration and encumbrance accounting are employed as management control devices during the year for all funds.

The 2020‐21 Adopted Budget includes a conservative fiscal spending plan and reflects $5.7 million for infrastructure and capital improvements, specifically water, sewer, street projects and public safety equipment. The City continues improving efficiencies by aligning closely re lated programs to achieve long‐term financial stability.

Major Accomplishments

The City of Monterey Park's major accomplishments during the fiscal year 2020‐21, which displayed significant financial impacts, included:

 Provided pandemic relief efforts to local businesses such as access to small business grants, free business technical assistance, s
ubsidies for restaurant delivery cost using third party delivery companies and expedited outdoor dining permits with all fees waived to support local restaurants;

 Successfully implemented the launch of the Tyler Munis ERP system for the financial components as well as Tyler Cashiering;

 Fire Department staff partnered with various healthcare pro viders to administer vaccination and testing services during multiple community events targeting seniors, school districts, and community members;;

 Adjusted the senior lunch program by collaborating with YWCA of San Gabriel Valley and the Los Angeles County Food Bank to establish a weekly delivery of 1,100 meals to over 200 seniors;

 Continued prud
ent, conservative management of the City's investment portfolio to maximize investment earning;

 Continued implementing the required Governmental Accounting Standards Board (GASB) Statements, including the pension and other postemployment benefits (OPEB) liabilities on the face of the financial statements;

 Continued implementing solutions to reduce unfund ed pension and other post‐employment benefit (OPEB) liabilities, including (1) annual OPEB liability pre‐funding practice; (2) Issued 2021 Bonds for pension obligations to reduce/control costs to minimize interruptions to essential City services and preserve City’s reserves – a 20‐year savings of $50 million;

 Through the internal us e of the Arbor Access Program, the City of Monterey Park was classified as the only city in California with a Hazardous Risk inventory quantity of zero. This is a unique accomplishment never before achieved by any city that West Coast Arborists (WCA) serves in California;

 Developed an d implemented the MPK Virtual Recreation webpage and virtual contract classes, free educational webinars and “Safer at Home” interactive activities;

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 Police Department implemented new body worn cameras and in car video systems; officers attended de‐escalation training, updated taser training, and updated use of force training; and

 Developed and adopted a Homelessness Plan for the City of Monterey Park (March 2021‐ December 2023).

Gann Spending Limitation

Article XIIIB of the Cali fornia Constitution, which was adopted in 1979 and amended in 1990 by Proposition 111, establishes a limit on government spending. The limit is calculated based on a government's 1978‐79 appropriations adjusted each year by the change in California per capita income or the change in nonresidential assessed valuation combined wi th the change in city or county population. The City's 2020‐21 appropriations limit was $99.2 million and the City's actual appropriation subject to the limit was 47% below the legal limit. Based on the past trend and projected future growth, the City believes its appropriations will continue remaining within the legal limit.

Debt Administration

Th
e primary objective of the City’s debt administration is to maintain its accessibility to capital market at the lowest possible cost; i.e. interest cost, without endangering its ability to finance essential services. The City uses debt financing only for capital improvements or projects that cannot be fi
nanced from current revenues. The City has been successful in obtaining financing for various infrastructure improvements, such as pension obligations, police 911 computer system, water treatment plants, and citywide smart meters/energy retrofit project.

Cash Management

While the City monitors its cash balance daily and invests temporarily idle funds in accordanc e with
the Government Code and the City’s Investment Policy, there is potential to further enhance our returns and cash management. The City's investment and cash management is through pooling of various City funds to maximize safe and efficient investment operations. Investment earnings are distributed based on average cash balance. The Finance st aff carries out the daily investment operations. At June 30, 2021, the City's investment balances, including amounts held by fiscal agent, were $99.1 million.

The City periodically submits its Investment Policy to the Municipal Treasurers Association of United States and Canada for certification to ensure the Policy meets the c riteria established by the Association’s Investment Policy Certification Program. The City's Investment Policy continued being recertified for the Certificate of Excellence Award.

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Risk Management
Monterey Park is self-insured for general liability and workers' compensation. The City has acquired excess coverage fo r both from the I ndependent Ci ties Risk Manageme nt Authority (ICRMA). The members pool their resources under a Joint P ower Authority ( JPA) agreement to support their individual self insurance programs. To finance risk mana gement, the City maintains interna l service funds for general liability and workers' com pensation insurances. The claims payable includes incurred-but-not-reported claims. However, the claim values consider the indemnity and expense exposures and are based on known facts at the time of eva luation. The City does not warranty the ultimate values of incurred-but-not-reported claims, which could be significantly different fr om the final settlement. The City actively administers various risk managem ent programs inc luding employee accident preven tion training, claims review, and monthly safety meetings to reduce the City’s exposure to loss.

Awar
ds and Acknowledgements
The Go vernment Finance Officers Association of the United States and Canada (GFOA ) awards a Certificate of Achievement for Excel lence in F inancial Reporting. The City of Monterey Park has been awarded the Certificate of Achievement by GFOA for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 20 20. This was the 32nd consecutive year the City received this a ward. The Certificate of Achievement i s a pre stigious national award -recognizing conformance with the highest standards for the preparation of state and local government financial reports. In order to be a warded a Certificate of Achievement, a g overnment unit must publish an easily readable and effi ciently organized compre hensive annual financial report, whose contents conform to program standards. Such a report must satisfy both generally accepted accounti ng principles and applicable legal requirements.

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

We believe the City' s Fiscal Year 2020-21 ACFR will continue to conform to the Certificate of Achievement Pr ogram's requirements, and we are s ubmitting it to the GFOA for award consideration. In addition, the City’s Budget has received awards for excellence in budgeting from both the Government Finance Officers Association of the United States and C anada (GFOA ) and California Society of Municipal Finance Officers Association (CSMFO).

We wo
uld like to express our sincere appreciation to the entire Management Services staff whose efficient and dedicated services have made this timely preparation of this report p ossible. We would also like to th ank the Mayor and City Council for their unfailing sup port of excellence in financial reporting and fiscal integrity. The accomplishme nts and values for this community which are presented in this report are a testament to the leadership of the City Council and the dedication of all City employees.

Respe
ctfully submitted,
Ron Bow M
artha Garcia
City Manager Director of Management Services
xii

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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented
to
City of Monterey Park
California
For its
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June
30, 2020
Executive Director/CEO
xiii

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July 1, 2020
For the Fiscal Year Beginning

PRESENTED TO
City of Monterey Park
Executive Director
California
xiv

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California Society of
Municipal Finance Officers
Ce rtificate of Award
Operating Budget Excellence Award
Fiscal Year 2020-2021
Pre sented to the
City of Monterey Park
Fo
r meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting January 31, 2021
Ma
rcus Pimentel Michael Manno, Chair
CSMFO President Recognition Committee
De
dicated Excellence in Municipal Financial Reporting
xv

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xvi

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CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member-firm-disclaimer for details.

CliftonLarsonAllen LLP
CLAconnect.com
(1)

INDEPEND
ENT AUDITORS’ REPORT
The Honorable Mayor and
Member of the City Council
of the City of Monterey Park
Monterey Park, California
Report on the Financial Statements
We have audited the accompanying financial stat ements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Monterey Park, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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The Honorable Mayor and
Member of the City Council
of the City of Monterey Park
(2)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Monterey Park as of June 30, 2021, and the respective changes in its financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 16 to the financial statements, the City implemented the Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities , in fiscal year 2020-2021, which resulted in restatements of beginning net position/fund balance. Our opinions are not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of changes in net pension liability and related ratios, and the schedules of contributions - CalPERS and MMRP pension plans, the schedule of changes in net OPEB liability and related ratios and schedule of contributions - OPEB plan, and the budgetary comparison schedules for the General Fund, Special Revenue Grants Fund, Special Revenue Retirement/Pension Liability Fund, and Special Revenue Housing Fund, identified as Required Supplementary Information (RSI) in the accompanying table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the RSI because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining statements and individual fund schedules (supplementary information), and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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The Honorable Mayor and
Member of the City Council
of the City of Monterey Park
(3)
The supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statement s or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 23, 2022, on our consideration of the City of Monterey Park’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Monterey Park’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, Califor
nia
March 23, 2022

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MANAGEMENT DISCUSSION AND ANALYSIS

Introduction

The Management Discussion and Analysis provides a narrative introduction, analysis, and overview that will assist in understanding of the City’s financial statements. This analysis should be read in conjunction with the City’s financial statements as of June 30, 2021, the transmittal letter, and notes to the basic financial statements.

Government-wide Financial Statements

The government-wide financ ial statements are designed to pr ovide information of the City’s financial activities in a manner similar to a pr ivate-sector company. G overnment-wide financial statements consist of the statement of net pos ition and the statement of activities, which are prepared using the economic resources measuremen t focus and the accrual basis of accounting.

These statements provide both short-term and l ong-term information about the City’s financial position, which is helpful in assessing the City’s economic condition at the end of the fiscal year.

The statement of net position presents all of the City’s financial resources along with its capital assets and long-term obligations. Th e difference between the assets a nd the liabilities is reported as the net position.

The statement of activities reports the gross and net costs of various activ ities carried out by the City and how the City’s net position changed during the fiscal year. This statement summarizes the cost of providing services by the City and includes all current year revenues and expenses.

Both government-wide financial stat ements distinguish fu nctions of the City that are principally supported by taxes and intergovernmental revenue s (i.e. governmental activities) from other functions that are intended to recover all or a sign ificant portion of their costs through user fees and charges (i.e. business-type activities). The govern mental activities of th e City include general government, public safety, community development, culture and recreation, highways and streets, health, and debt service. The busin ess-type activities reflect the City’s water system operations, waste management activities, and sanitary sewer activities.

The government-wide financial statements include not only the City but also those legally separate entities for which the City is financially account able. These entities include the Monterey Park Housing Authority and the Monterey Park Public Financing Authority. Fi nancial information for these component units is reported as an integral part of the City. Please refer to Note Number 1A of the Notes to the Basic Financial Statements.

Fund Financial Statements

A fund is a grouping of related accounts used to c ontrol resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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Governmental Funds

Governmental funds are used to account for esse ntially the same governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial stat ements focus on near -term inflows and outflows of expendable resources, as well as on balances of expendable re sources available at the end of the fiscal year.

Governmental funds are accounted for using th e modified accrual basis of accounting, which provides a detailed view of the City’s current fina ncial resources and the City’s ability to meet its current expenditure needs. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrow er than that of the government-wide financial statements, it is useful to compare the informa tion presented for governmental funds with similar information presented for governmental activities in the governm ent-wide financial statements. By doing so, readers may better und erstand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund bala nces provide a reconciliation to facilitate this comparison between governmental funds and government-wide activities.

The City maintains 20 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for General Fund , Special Revenue Grants Fund, Special Revenue Retirement/Pension Liability Fund, and Special Revenue Housing Fund, wh ich are reported as major funds. Information for the other 16 governmental funds is combined into a single column under Nonmajor Special Revenue Governmental Funds. Data for the nonmajor governmental funds is provided in the combining statements in this report.

The City adopts an annual appr opriated budget for its governmental funds. Budgeted expenditures are controlled at the fund level. Budgetary comparison statements have been provided to demonstrate compliance with this budget. Please refer to the Notes to Required Supplementary Information.

Proprietary Funds

Proprietary funds use the accrual basis of accoun ting, which is the same method used by private businesses. Proprietary fund financ ial statements provide the same type of information as the government-wide financial statements, only in more detail.

The City maintains two different types of proprietary funds: enterp rise funds and internal service funds. The enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations for its water system, waste management activities, and sanitary sewer activities.

Internal service funds are used to accumulate and alloca te costs internally among the City’s various functions, which include vehicl e operation, workers compensation insurance, retiree medical benefits, general liability insurance, separation benefits, and technology development. Because the internal service operations benefi t both governmental and business-ty pe functions, they have been proportionally allocated and includ ed within the governme ntal and business-lik e activities in the government-wide financial statemen ts. Individual fund data for the internal service funds is provided in the form of combining statements in this report.

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Fiduciary Funds

Fiduciary funds are used to account for activities when the City acts as a trust or fiduciary to hold resources for the benefit of parties outside the g overnment. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s programs.

Notes to the Basic Financial Statements

The notes to the basic financial statements provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information

The required supplementary inform ation further explains and supp orts the inform ation in the financial statements. This section includes the schedules of the City’s funding for its employee pension program, other post-employment benefits program, and the budgetary comparison for the General Fund, Special Revenue Grants Fund, Speci al Revenue Retirement/Pension Liability Fund, and the Special Revenue Housing Fund.

Other Supplementary Information

Other supplementary information includes combining and indi vidual budgetary comparison schedules for Nonmajor Governmental Funds, and combining statements for Internal Service Funds.

Financial Highlights

 Total 2020-21 net position decreased by $7.1 milli on from 2019-20, which is the total of the $6.1 million decrease in government al activities and the $1.0 millio n decrease in business-type activities. The $6.1 million decrea se in governmental services was primarily attributed to growing pension and other post-em ployment benefits (OPEB) cost s, as well as a reduction in charges for services. The $1.0 million decrease in business-type activities was primarily due to a slight increase in water expenses.

 As of June 30, 2021, the City’s asse ts and deferred outflo w of resources exceeded its liabilities and deferred inflow of resources by $32.5 million, of which $85.6 million was related to the net investment in capital assets, $22.4 million was restricted for sp ecial revenues, and a negative $75.5 million was unrestricted.

 At the 2020-21 year-end, the General Fund total fund balance was $35.1 million, a decrease of $0.4 million from last year as restated (See note 16 for details). This decrease was primary due to the increase in current expenditures over the prior year being greater than the increase in current revenues over the prior year excluding the impact of the use of the bond proceeds and capital lease transaction.

 The City kept the residential tr ash rates at the same level as 2019-20. However, the service contract cost for the trash provider was adjusted by CPI, per the contractual agreement.

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 The City approved 2-year salary rates and benefits for the Ex ecutive Management Team, which is not represented by a bargaining unit, to ensure that public services continued to be delivered at the highest level possible.

 The City continued to serve as the Successor Agency for its former Redevelopment Agency, and reported the former RDA assets an d liabilities in the Fiduciary Fund as a Private Purpose Trust Fund.

Government-wide Financial Analysis

The net position of the City is de rived from the total assets and de ferred outflows of resources less its liabilities and deferre d inflows of resources at the end of a reporting period. It serves as an indicator of a government's financ ial position at a certain point in time. As of June 30, 2021, the City’s combined assets (governmental and business-type activities) totaled $226.2 million, up $12.5 million from last year. The increase was primarily attributed to the $5.0 million increase in cash and investments, $1.6 million increase in accounts receivable and $6.2 mil lion increase in capital asset.

City’s total deferred outflo w of resources increased $105.5 mil lion, from $17.7 mil lion to $123.2 million due to the proceeds of the 2021 Pension Obligation Bond (POB) being contributed to CalPERS pension plans to pay down the City’s unf unded pension liabilities. Similar as the asset increase, the City’s liabilities totaled $310.8 million, up $122.1 million from last year. The increase was primarily attributed to the increase in cu rrent and non-current liabili ties due to the 2021 POB.

The City’s total deferred inflow of resources decreased $ 1.0 million, from $7.1 million to $6.1 million. The decrease was related to the City’s ot her post employment benefits. As a result, the City’s combined net position totaled $32.5 million, down $7.1 million from last year as restated (See note 16 for details)..

Net position consists of three cate gories: net investment in capital assets, restricted fund balances, and an unrestricted fund balance. The largest portion of the City’s net position, approximately $85.6 million, is the City’s investment in capital as sets, including land, buildings, equipment, and infrastructure net of accumulated depreciation and related debt for acquiring these capital assets.

Since the capital asse ts are used to provide serv ices to citizens, they ar e not available to fund the City’s day-to-day activities.

The City’s restricted net position totaled $22.4 million at June 30, 2021. These are assets subject to external restrictions, constitutional provisions, or enabling legislation that limit how these assets may be used. The restricted net position includes prim arily grants, retireme nt/pension funds, and various nonmajor special revenue funds. The unrestricted net posit ion is available for use by the City for any legal purpose. As of June 30, 2021, the City’s total unrestricted net position was a negative $75.5 million.

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6/30/2021 6/30/2020 6/30/2021 6/30/2020 6/30/2021 6/30/2020 84,852$ 77,970 $ 35,709 $ 36,310 $ 120,561 $ 114,280 $ Capital Assets 61,796 55,798 40,589 40,403 102,385 96,201 $ Other 3,207 3,219 3,207 3,219 $ 149,855$ 136,987 $ 76,298 $ 76,713 $ 226,153 $ 213,700 $ Deferred Outflow of Resources 116,613$ 16,424 $ 6,623$ 1,229$ 123,236 $ 17,653$ 24,038$ 11,190 $ 4,802$ 3,539$ 28,840 $ 14,729$ 259,382 156,324 22,624 17,663 282,006 173,987 283,420$ 167,514 $ 27,426 $ 21,202 $ 310,846 $ 188,716 $ Deferred inflow of Resources 5,462$ 6,140 $ 626 $ 922 $ 6,088 $ 7,062 $ Capital Assets 53,107$ 50,393 $ 32,466 $ 31,923 $ 85,573 $ 82,316$ 22,378 28,525 - - 22,378 28,525 (97,899) (99,161) 22,403 23,895 (75,496) (75,266) (22,414)$ (20,243)$ 54,869 $ 55,818 $ 32,455 $ 35,575$ Statement of Net Position
Fiscal Years Ended June 30, 2021 and June 30, 2020
(In thousands)
Governmental Business-type
TotalActivities Activities
Assets:

Current
Non Current
Net Investment in
Restricted
Unrestricted
Total Net Position
T
otal Assets:

Liabilities:

Current
Long-Term
Total liabilities:

Net Position:

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6/30/2021 6/30/2020 6/30/2021 6/30/2020 6/30/2021 6/30/2020 Revenues:

Program Revenues:

Charges for Services $ 8,733 $ 8,406 $ 26,266 $ 23,673 $ 34,999 $ 32,079 Operating Grants & 12,200 9,349 12,200 9,349
Contributions
Capital Grants & - 280 94 149 94 429 Contributions
General Revenues:

Taxes 44,888 39,940 44,888 39,940
Revenues from Use of
Money and Property 396 2,096 53 563 449 2,659 Other 1,339 1,566 2 2,260 1,341 3,826 Total Revenues: $ 67,556 $ 61,637 $ 26,415 $ 26,645 $ 93,971 $ 88,282 Expenses:

General Government 16,863 7,025 16,863 7,025
Public Safety 41,432 46,449 41,432 46,449
Comm. Development 501 386 501 386
Culture & Recreation 7,368 8,194 7,368 8,194
Highway & Streets 6,349 7,592 6,349 7,592
Health 187 138 187 138 Interest & Fiscal Charges 1,534 923 1,534 923 Water/Refuse/Sewer 26,829 24,840 26,829 24,840
Total Expenses: 74,234 70,707 26,829 24,840 $ 101,063 95,547 Transfers 534 541 (534) (541) - - Changes in Net Position (6,144) (8,529) (948) 1,264 (7,092) (7,265) Net Position – July 1 * (16,270) (11,714) 55,817 54,554 39,547 42,840 Net Position – June 30 $ (22,414) $ (20,243) $ 54,869 $ 55,818 $ 32,455 $ 35,575 * The Governmental Activities Beginning Net Position was restated as of July 1, 2020, from $(20,243) to $(16,270). See Note 16.

Statement of Activities
For the Years Ended June 30, 2021 and June 30, 2020
(In thousands)
Governmental Business-type
Activities Activities Total

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Governmental Activities Financial Analysis

Overall governmental activities decreased the City’s net position by $6.1 million. The decrease in net position was primarily due to a $7.9 million pa yment to Los Angeles County related to the dissolution of the City’s former redevelopment agency included in general government expenses.

Governmental Funds

The City uses fund accounting to ensure and dem onstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows and outflows during the fiscal year and bala nces of spendable resources at the end of the fiscal year. Such information is useful in asse ssing the City’s financing requirements to meet the current needs. Unassigned fund balance may serve as a useful measure of the City’s net resources available for appropriation.

As of June 30, 2021, the City’s gov ernmental funds reported a co mbined ending fund balance of $55.9 million, a decrease of $7.8 million from the prior year as restated (See note 16 for details on restatement). The fund balance categories of the governmental funds show $73,000 as nonspendable, $9.6 million as committed, $21.4 million as assigned, and $4.4 million as unassigned. This unassigned amount is solely comprised of General Fund reserves. (Please refer to Note 14 of the Notes to Basic Financial Statements for detailed breakdown.)

There are four major funds in the governmental funds: General Fund, Special Revenue Grants Fund, Special Revenue Retirement/Pension Liability Fund, and the Special Revenue Housing Fund.

The General Fund is the main operating fund of the Cit y, which accounts for the majority of the police, fire, recreation, parks ma intenance, public works, libra ry, community development, and general administrative services . General Fund revenues and othe r financing sources for 2020-21 totaled $150.3 million, an increase of $106.7 million from 2019-20. The increase was primarily due to the $100.9 million 2021 POB proceed. Similarl y, total 2020-21 general fund expenditures and transfers out were $150.6 milli on, reflecting an increase of $107.0 million from 2019-20. The increase was primarily attributed to the pe nsion UAL payoff utilizing the 2021 POB proceeds. As of June 30, 2021, the total fund ba lance of the General Fund was $35.1 million, a decrease of $0.4 million from last year as restated (See note 16 for details on restatement).

The Special Revenue Grants Fund reports the activities of various grants that the City received from Federal, State, and County agencies. Unspent grant funds are accumulated for expenditures in future years. Total grants received for governme ntal activities in 2020-21 were $3.4 million, up $1.1 million from last year. Total 2020-21 grant funded expenditures and transfers out were $4.9 million, reflecting an increase of $1.9 million from 2019- 20. Total fund balance of the Special Revenue Grants Fund as of June 30, 2021 was $1.2 million, a decrease of $1.5 million from last year as restated (See note 16 for details on restatement).

Special Revenue Retirement/Pension Liability Fund accounts for revenue re ceived from the voter- approved property tax levied to pr ovide for employee retirement costs. Total revenues and transfers for 2020-21 were approximately $12.5 million, a decrease of $0.9 million from prior year. Total expenditures for 2020-21 were $20.4 million, up $8.9 million from 2019-20. The increase in expenditures was primarily due to $7.9 million higher community development expenditures. The total fund balance in the Retirement/Pension Liability Fund as of June 30, 2021 was $82,000.

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The Special Revenue Housing Fund accounts for housing activities. The City assumed the responsibility of the housi ng assets and functions after the disso lution of the City's Redevelopment Agency. There were very little interest and other revenues a nd no housing expenditures for 2020-

21. As of June 30, 2021, the fund balance of the Sp ecial Revenue Housing Fund stays fairly the same as last year at $2.5 million.

Nonmajor Governmental Funds account for various activities including street improvement, transportation, air quality improvement, lighting a nd landscaping district, public safety activity, and development impact improvements. Total revenues and transfer -in for 2020-21 we re $9.4 million, up $0.6 million from 2019-20. Total expenditures and transfer-out for 2020-21 were $7.5 million, a decrease of $0.9 million over 2019-20. As of June 30, 2021, the fund balance of the Nonmajor Governmental Funds totaled $17.0 million, up $2.0 million from 2019-20.

Business-type Activities Financial Analysis

The business-type activities reflect the City’s water system, which includes water operation and water treatment, waste management activities and sanitary sewer activities.

Total 2020-21 water revenues and transfers in were $16.2 million, down $0.4 million from 2019-20.

The decrease in water revenues wa s primarily due to lower intere st revenue. Wate r expenses and transfers out were $16.6 million, up $1.2 million from 2019-20. The increase wa s primarily due to higher personnel costs, including retirement and OPEB, costs for the water production and water treatment operations in 2020-21. The net position for the Water Fund was $50.8 million at June 30, 2021, an decrease of $0.4 million over the prior year.

Refuse revenues were $6.9 million, up $0.2 million from last year. Operating expenditures and transfers out were $7.1 million, up $0.5 million from last year. The net position for the Refuse Fund was $685,000 at June 30, 2021, a decrease of $145,000 from the prior year. .

Sewer revenues and transfers in were $3.3 million, which stays the same as last year. Operating expenditures were $2.9 mil lion, up $0.4 million from last year. The increas e was primarily due to higher personnel costs, including retirement. The net position for the Sewer Fund increased to $9.9 million, an increase of $0.4 million from the prior year.

General Fund Budgetary Highlights

The originally adopted General Fund budget for th is fiscal year was $45.8 million, including a $1.8 million Retirement Fund supplement for pension costs. The final amended budget of $59.0 million reflected City Council approved am endments throughout the year as well as capital improvement carryovers from 2019-20.

The budget amendments included additional funds for the minimum wage mandates, for costs to cover the March and November elections, social archive, codification, legal notices and redistricting, for the purchase of radio equipment for the fire department and the hiring of a new police department lieutenant.

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Overall, actual revenues in the General Fund were $1.0 million hi gher than the budg eted revenues, which was due to the recovery from the COVI D-19 pandemic, and the strong performance of property tax and sales tax. The $1.0 million increas e was the net total of $2.2 million increase in taxes, offset by $0.2 million decrease in licenses a nd permits, $0.9 million decrease in charges for services and $0.2 million decrease fines and forfeitures revenue. Actual expenditures in the General Fund were under budget in most major categories, except for general government and highway and streets. General government was over budget $95.5 million, which was due to the pension UAL payoff expenditures related to th e issuance 2021 POB. Highways a nd streets was over budget $0.3 million, which reflects the City ’s commitment and reallocation of resources from non-urgent services to crucial and necessary services. Public safety was under budget $0.6 million, community development was underbudget $0.1 million, and culture and recreation was under budget $0.8 million. These were due to the City’s cost contro l measures in response to the unclear economic outlook due to COVID-19. Overall, actual expe nditures were $90 million more than budgeted, which was primarily attributed to the pension UAL payoff expenditure s. Most of the capital outlay budget that was not spent will be rolled over into the 2021-22 budget.

Capital Asset Administration

The City’s capital assets, net of accumulated de preciation, for its governme ntal and business-type activities as of June 30, 2021, totaled $102.4 million, an increase of $6.2 million from prior year.

The capital assets include land, bu ildings, improvements, machinery and equipment, parks, roads, traffic lights, and traffic signals
. (Readers desiring more detailed in formation on capital asset activity should refer to Note 6 of the Notes to the Basic Financial Statements.)

6/30/2021 6/30/2020 6/30/2021 6/30/2020 6/30/2021 6/30/2020 Land 8,465 $ 8,465 $ 500 $ 500 $ 8,965 $ 8,965 $ Buildings 14,824 15,417 137 142 14,961 15,559 Improvements 15,119 13,687 27,635 28,675 42,754 42,362 Construction in Progress 6,622 2,149 9,597 8,830 16,219 10,979 Equipment 6,442 4,582 385 496 6,827 5,078 Infrastructure 10,324 11,498 2,335 1,760 12,659 13,258 61,796$ 55,798$ 40,589$ 40,403$ 102,385$ 96,201 $ Capital Assets Net of Depreciation
Fiscal Years Ended June 30, 2021 and June 30, 2020
(In thousands)
Governmental Business-type
Activities Activities Total

Major capital asset additions during the fiscal year included the following:

 Completed construction of Fire Station 62
 Completed Police locker room remodel
 Completed Garvey/Alhambra Avenue traffic signal service relocation  Completed Garvey Reservoir drainage improvements
 Completed 2020 Catch Basin Insert project

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 Continued IT software and hardware upgrades for the new Enterprise Resources Planning (ERP) System implementation
 Continued General Plan updates
 Continued Potrero Grande roadway improvements
 Continued water well, water main, and pumping station upgrades per Water Master Plan

Debt Administration

As of June 30, 2021, the City’s long-term debt increased $108.4 million to $159.4 million from $51.0 million from the prior year pr imarily due to the issuance of $106.3 million of pension obligation bonds and a $2.7 million capital l ease for police radio equipment. (Please refer to note number’s 7, 8 and 12 of the Notes to the Basic Financial Statements for detailed information.)

State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total assessed valuation. The current debt limitation for the City is $1.27 billion.

6/30/2021 6/30/2020 6/30/2021 6/30/2020 6/30/2021 6/30/2020 Capital Leases 5,669 $ 3,587 $ 7,915 $ 8,466 $ 13,584 $ 12,053$ Section 108 Loan 1,047 1,526 - - 1,047 1,526 Pension Obligation Bonds 112,662 12,200 5,443 - 118,105 12,200 Compensated Absences 5,027 5,057 737 706 5,764 5,763 Insurance Assessments
Payable 981 1,145 - - 981 1,145 Claims and Judgments 19,949 18,373 - - 19,949 18,373 145,335$ 41,888$ 14,095$ 9,172$ 159,430$ 51,060$ Long-term Debt
Fiscal Years ended June 30, 2021 and June 30, 2020
(In thousands)
Government Activities Business-Type Activities Total

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Economic Factors and Next Year's Budget

 The City’s total assessed valuation is $8.5 billion, up 5%, or $394 million, from 2019-20.

 The fiscal year 2021-22 C ity Budget is balanced. The City is conservativ e in projecting future revenues. The City’s spending plan follows th e City Council’s dire ction in maintaining excellent community service, enhancing organizational efficiency, and funding much needed infrastructure and capital improvements. The City will conclude a new 4-year labor agreement negotiations with Fire, Fire Management, Poli ce, Police Mid-Management, and Police Captain bargaining units. Any potential salary and benefit contract adjustments will be considered during the mid-year budget process.

 The City continues with the Fire Station 62 re placement project. The ne w facility will meet current laws, regulations and NFPA standards.

 The City continues to construct its Centrali zed Groundwater Treatment System for the Delta Plant.

 The City is anticipating th e opening of a new 134 hotel room with 84 condominium units Holiday Inn and Suites hotel in mid FY 2021-2022. The project, located on a two-acre site at 420 N. Atlantic Boulevard, will consist of a five -story edifice containing a 134-room hotel, 84 condominiums, and 7,125 square fe et of ground floor restaurant space. The new construction replaces a smaller 55-room motel and a 13-unit apartment building.

 Celadon at Garvey & Garfield is a mixed-use development in Do wntown Monterey Park that offers 108 units of family housi ng with 70,000 square feet of re tail and food es tablishments.

Residents of the building have access to three major common areas, all of which are integrated with the outdoors to take advantage of the m ild Monterey Park clima te. Celadon developers and architects embraced the new urbanist concepts of compact, dense, and walkable communities to improve both quality of life for the residents, as well as lighten the community’s footprint on the environment. Estimated completion is mid-2023.

 The Monterey Park Market Place Shopping Center is located directly of f and visible from the SR-60 freeway. The Center now ha s stores, including Costco, Home Depot, Chick-fil-A, In-N- Out, Guitar Center, Starbucks, Buffalo Wild Wings, Mod Pizza, America Best Eyeglasses, and Chase Bank. This regional power center will c ontinue store-opening, t hus increasing property and sales tax revenues for the City.

 The water, sewer, and trash rates study will be continued and new rates will be presented to the Council for approval.

Requests for Information

This financial report is designed to provide a ge neral overview of the C ity’s finances for all interested persons and organizatio ns. The report is published on the City’s official website.

Questions concerning any of the information provi ded in this report, or requests for additional financial information, s hould be addressed to City of Monterey Park, Management Services, 320 West Newmark Avenue, Monterey Park, CA 91754.

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BASIC FINANCIAL STATEMENTS

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GOVERNMENT-WIDE FINANCIAL STATEMENTS

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CITY OF MONTEREY PARK

STATEMENT OF NET POSITION
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(20)

Governmental Business-type
Activities Activities Total
ASSETS
Current Assets:

Cash and Investments 73,981,573 $ 36,010,644 $ 109,992,217 $ Cash and Investments Held by Fiscal Agent 40,194 324 40,518 Accounts Receivable 4,135,196 6,250,338 10,385,534 Interest Receivable 39,462 31,327 70,789 Prepaid Assets 72,590 - 72,590 Internal Balances 6,583,146 (6,583,146) - Total Current Assets 84,852,161 35,709,487 120,561,648 Noncurrent Assets:

Loans Receivable, Net 1,922,689 - 1,922,689 Receivable from Successor Agency 1,170,993 - 1,170,993 Net Pension Asset 114,000 - 114,000 Capital Assets:

Not Being Depreciated 15,087,377 10,096,577 25,183,954 Being Depreciated, Net 46,708,233 30,492,502 77,200,735 Total Capital Assets 61,795,610 40,589,079 102,384,689 Total Noncurrent Assets 65,003,292 40,589,079 105,592,371 Total Assets 149,855,453 76,298,566 226,154,019

DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to Pension Plans 114,133,347 6,160,958 120,294,305 Amounts Related to
Other Post Employment Benefits 2,479,499 461,674 2,941,173 Total Deferred Outflows of Resources 116,612,846 6,622,632 123,235,478 Primary Government

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CITY OF MONTEREY PARK

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(21)

Governmental Business-type
Activities Activities Total

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities 4,412,819$ 3,381,418 $ 7,794,237 $ Accrued Payroll 1,641,138 45,388 1,686,526 Interest Payable 735,532 16,045 751,577 Deposits and Advances 457,620 520,050 977,670 Unearned Revenue 7,521,592 - 7,521,592 Due to Other Governmental Agencies 736,467 - 736,467 Long-Term Liabilities - Due Within One Year 8,533,031 839,063 9,372,094 Total Current Liabilities 24,038,199 4,801,964 28,840,163 Noncurrent Liabilities:

Long-Term Liabilities -
Due in More than One Year 136,801,807 13,255,687 150,057,494 Net Pension Liabilities 101,973,270 5,531,177 107,504,447 Net OPEB Liabilities 20,606,920 3,836,931 24,443,851 Total Noncurrent Liabilities 259,381,997 22,623,795 282,005,792 Total Liabilities 283,420,196 27,425,759 310,845,955

DEFERRED INFLOWS OF RESOURCES
Amounts Related to Pension Plans 2,101,913 - 2,101,913 Amounts Related to
Other Post Employment Benefits 3,360,497 625,712 3,986,209 Total Deferred Inflows of Resources 5,462,410 625,712 6,088,122

NET POSITION
Net Investment in Capital Assets 53,107,029 32,466,443 85,573,472 Restricted for:

Grants 1,516,641 - 1,516,641 Retirement/Pension 195,838 - 195,838 Housing 3,638,646 - 3,638,646 Public Safety 513,037 - 513,037 Community Development 137,847 - 137,847 Culture and Recreation 864,740 - 864,740 Highways and Streets 15,510,933
- 15,510,933
Unrestricted (Deficit) (97,899,017) 22,403,284 (75,495,733) Total Net Position (22,414,307)$ 54,869,727$ 32,455,420$ Primary Government

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CITY OF MONTEREY PARK

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(22)

Operating Capital
Charges for Grants and Grants and
FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Governmental Activities:

General Government 16,862,932 $ 1,430,819 $ 73,468 $ - $ Public Safety 41,432,208 2,765,703 2,108,033 - Community Development 500,831 1,894,660 2,190,176 - Culture and Recreation 7,367,933 230,570 295,888 - Highway and Streets 6,349,422 2,410,818 7,389,280 - Health 187,500 - 143,009 - Interest and Fiscal Charges 1,533,531 - - - Total Governmental Activities 74,234,357 8,732,570 12,199,854 - Business-type Activities:

Water Utility 16,900,021 16,087,723 - 93,503 Refuse 7,102,416 6,905,547 - - Sewer 2,826,252 3,273,154 - - Total Business-type Activities 26,828,689 26,266,424 - 93,503 Total 101,063,046 $ 34,998,994 $ 12,199,854 $ 93,503 $ Program Revenues

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CITY OF MONTEREY PARK

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(23)

Governmental Business-type
FUNCTIONS/PROGRAMS Activities Activities Total
Governmental Activities:

General Government (15,358,645)$ -$ (15,358,645)$ Public Safety (36,558,472) - (36,558,472) Community Development 3,584,005 - 3,584,005 Culture and Recreation (6,841,475) - (6,841,475) Highway and Streets 3,450,676 - 3,450,676 Health (44,491) - (44,491) Interest and Fiscal Charges (1,533,531) - (1,533,531) Total Governmental Activities (53,301,933) - (53,301,933) Business-type Activities:

Water Utility - (718,795) (718,795) Refuse - (196,869) (196,869) Sewer - 446,902 446,902 Total Business-type Activities - (468,762) (468,762) Total (53,301,933) (468,762) (53,770,695)

GENERAL REVENUES
Taxes:

Property Taxes 29,942,243 - 29,942,243 Sales Taxes 9,063,297 - 9,063,297 Utility User Taxes 2,931,943 - 2,931,943 Franchise Taxes 1,011,131 - 1,011,131 Business License Taxes 721,601 - 721,601 Transient Occupancy Taxes 953,200 - 953,200 Other Taxes 220,485 - 220,485 Vehicle In-Lieu Taxes
(Unrestricted, Intergovernmental) 44,545 - 44,545 Revenues from Use of Money and Property 395,918 53,395 449,313 Other 1,339,319 1,410 1,340,729
Total General Revenues 46,623,682 54,805 46,678,487 TRANSFERS 533,787 (533,787) -
CHANGE IN NET POSITION (6,144,464) (947,744) (7,092,208) Net Position (Deficit) - Beginning of Year, as Restated (16,269,843) 55,817,471 39,547,628 NET POSITION (DEFICIT) - END OF YEAR (22,414,307)$ 54,869,727$ 32,455,420$ Net (Expense) Revenue and
Changes in Net Position

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FUND FINANCIAL STATEMENTS

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CITY OF MONTEREY PARK
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(26)

Retirement/
General Grants Pension Liability Housing
ASSETS
Cash and Investments 36,805,023 $ 9,187,720 $ - $ 1,281,431$ Cash and Investments Held
by Fiscal Agents 6,076 - 33,496 - Accounts Receivable 3,146,916 344,642 167,503 - Interest Receivable 25,750 698 - - Prepaid Items 72,590 - - - Due from Other Funds 863,666 - - - Loans Receivable, Net - 736,467 - 1,186,222 Receivable from Successor Agency - - - 1,170,993 Total Assets 40,920,021 $ 10,269,527 $ 200,999 $ 3,638,646 $

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable and
Accrued Liabilities 3,705,230 $ 185,585$ 5,583$ -$ Accrued Payroll 1,610,170 2,574 - - Deposits and Advances 457,620 - - - Unearned Revenue - 7,521,592 - - Due to Other Funds - 413,383 113,578 - Due to Other Governmental Agencies - 736,467 - - Total Liabilities 5,773,020 8,859,601 119,161 -

DEFERRED INFLOW OF RESOURCES
Unavailable Revenue 9,909 193,649 - 1,186,222 Total Deferred
Inflow of Resources 9,909 193,649 - 1,186,222

FUND BALANCES
Nonspendable 72,590 - - - Restricted - 1,216,277
81,838 2,452,424
Committed 9,226,927 - - - Assigned 21,418,237 - - - Unassigned 4,419,338 - - - Total Fund Balances 35,137,092 1,216,277 81,838 2,452,424 Total Liabilities, Deferred Inflow of
Resources, and Fund Balances 40,920,021$ 10,269,527$ 200,999$ 3,638,646$ Major Funds
Special Revenue

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CITY OF MONTEREY PARK
BALANCE SHEET – GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(27)

Nonmajor Total
Governmental Governmental
Funds Funds
ASSETS
Cash and Investments 17,269,700$ 64,543,874$
Cash and Investments Held
by Fiscal Agents - 39,572
Accounts Receivable 476,135 4,135,196
Interest Receivable 13,014 39,462
Prepaid Items - 72,590
Due from Other Funds - 863,666
Loans Receivable, Net - 1,922,689 Receivable from Successor Agency - 1,170,993 Total Assets 17,758,849$ 72,788,042$

LIABILITIES, DEFERRED INFLOW OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable and
Accrued Liabilities 275,372$ 4,171,770$
Accrued Payroll 13,501 1,626,245
Deposits and Advances - 457,620
Unearned Revenue - 7,521,592
Due to Other Funds 336,705 863,666
Due to Other Governmental Agencies - 736,467 Total Liabilities 625,578 15,377,360

DEFERRED INFLOW OF RESOURCES
Unavailable Revenue 106,715 1,496,495
Total Deferred
Inflow of Resources 106,715 1,496,495

FUND BALANCES
Nonspendable: - 72,590
Restricted: 16,717,532 20,468,071
Committed: 367,752 9,594,679
Assigned: - 21,418,237
Unassigned: (58,728) 4,360,610
Total Fund Balances 17,026,556 55,914,187
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances 17,758,849$ 72,788,042$

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CITY OF MONTEREY PARK

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE

STATEMENT OF NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(28)

Total Fund Balance of Governmental Funds in Fund Sstatements 55,914,187$ Internal service funds are used by management to c harge the costs of separation benefits, workers' compensation, vehicle, technology and general liability to individual funds. The assets and liabilities of internal service funds are reported with governm ental activities in the statement of net position.

Total net deficit is $(10,228,609) plus the portion of net deficit allocated to business-type activities of $6,588,185. (3,645,463)
Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. (Total governm ental assets of $61,795,610 less internal service funds of $3,385,655, which has already been accounted for in the reconciliation of internal service funds elimination). 58,409,955
Net pension asset is not available to pay for current period expenditures of the governmental funds and, therefore, is not reported as an asset in the governmental funds. 114,000
Long-term liabilities in the amount of $145,331,485, excluding net pension liabilities and net other post employment benefit (OPEB) liabilities, are not due and payable in the current period and therefore are not reported in the governmental funds , net of $22,796,643 included in reconciliation of internal service funds. (122,538,195)
Interest on long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. (735,532)
Net pension liability is not due and payable in the current period and therefore is not reported in the governmental funds. (101,973,270)
Pension contributions made during the year after the measurement date are reported as expenditures in governmental funds and as deferred outflow of resources in the government-wide financial statements. 110,796,408
Other deferred outflows and inflows of resources related to the net pension liability are reported only in the government-wide financial statements:

Net difference between projected and actual earnings on pension plan investments 1,690,065 Difference between expected and actual experience (455,039) Net OPEB liability is not due and payable in the current period and therefore is not reported in the governmental funds. (20,606,920)
OPEB contributions made during the year after the measurement date are reported as expenditures in governmental funds and as deferred outflow of resources in the government-wide financial statements. 2,326,765
Other deferred outflows and inflows of resources related to the net OPEB liability are reported only in the government-wide financial statements:

Net difference between projected and actual earnings on OPEB plan investments 152,734 Difference between expected and actual experience (2,745,063) Changes in assumptions (615,434)
Revenues earned but not available to pay for current expenditures for governmental funds are unavailable. 1,496,495
Net Position of Governmental Activities (22,414,307)$

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CITY OF MONTEREY PARK
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(29)

Retirement/
General Grants Pension Liability Housing

REVENUES
Taxes 34,881,186 $ - $ 9,285,658$ - $ Licenses and Permits 1,849,831 - - - Intergovernmental Revenues - 3,322,441 - - Charges for Services 6,344,336 - - - Revenues from
Use of Money and Property 388,504 64,623 127 4,239
Fines and Forfeitures 354,802 - - - Other Revenue 1,619,239 - - 2,791 Total Revenues 45,437,898 3,387,064 9,285,785 7,030

EXPENDITURES
Current:

General Government 104,127,643 1,539,105 9,936,559 - Public Safety 26,933,033 1,179,114 8,231,539 - Community Development 280,648 - 72,437 - Culture and Recreation 4,708,508 228,203 781,179 - Highways and Streets 2,084,489 29,298 243,086 - Health - - - - Capital Outlay 8,020,508 17,802 - - Debt Service:

Debt Issuance Costs 743,285 - - - Principal Retirement 84,547 600,879 430,000 - Interest and Fiscal Charges 55,156 10,867 738,230 - Total Expenditures 147,037,817 3,605,268 20,433,030 -

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES (101,599,919) (218,204) (11,147,245) 7,030

OTHER FINANCING

SOURCES (USES)
Transfers In 1,255,421 13,842 3,218,932 -
Transfers Out (3,586,794)
(1,301,314) - -
Capital Lease 2,682,300 - - - Issuance of Debt 100,892,026 - - - Total Other
Financing Sources (Uses) 101,242,953 (1,287,472) 3,218,932 - NET CHANGE IN FUND BALANCES (356,966) (1,505,676) (7,928,313) 7,030 Fund Balances, Beginning of Year,
As Restated 35,494,058 2,721,953 8,010,151 2,445,394
FUND BALANCES, END OF YEAR 35,137,092$ 1,216,277$ 81,838$ 2,452,424$ Special Revenue
Major Funds

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CITY OF MONTEREY PARK
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –

GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(30)

Nonmajor Total
Governmental Governmental
Funds Funds

REVENUES
Taxes 1,065,993 $ 45,232,837 $
Licenses and Permits - 1,849,831
Intergovernmental Revenues 8,108,391 11,430,832
Charges for Services 113,741 6,458,077
Revenues from
Use of Money and Property 61,300 518,793
Fines and Forfeitures 91,939 446,741
Other Revenue - 1,622,030
Total Revenues 9,441,364 67,559,141

EXPENDITURES
Current:

General Government 28,106 115,631,413
Public Safety 1,298,326 37,642,012
Community Development 77,542 430,627
Culture and Recreation 900,436 6,618,326
Highways and Streets 3,264,776 5,621,649
Health 187,500 187,500
Capital Outlay 1,617,092 9,655,402
Debt Service:

Debt Issuance Costs - 743,285
Principal Retirement 38,602 1,154,028
Interest and Fiscal Charges 5,388 809,641 Total Expenditures 7,417,768 178,493,883

EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES 2,023,596 (110,934,742)

OTHER FINANCING

SOURCES (USES)
Transfers In - 4,488,195
Transfers Out (41,100) (4,929,208)
Capital Lease - 2,682,300
Issuance of Debt - 100,892,026
Total Other
Financing Sources (Uses) (41,100) 103,133,313 NET CHANGE IN FUND BALANCES 1,982,496 (7,801,429) Fund Balances, Beginning of Year,
As Restated 15,044,060 63,715,616
FUND BALANCES, END OF YEAR 17,026,556$
55,914,187$

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CITY OF MONTEREY PARK

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(31)

Net Change in Fund Balance - Total Governmental Funds (7,801,429)$ Amount reported for governmental activities in the statement of activities are different because:

Internal service funds are used by management to charge the costs of separation benefits, workers' compensation, vehicle, technology and general liability to individual funds. The net income/(expense) of certain activities of internal service fund is reported with governmental activities. This amount excludes $(798,765) charged to the Water and Refuse Enterprise Funds. (476,829)
Governmental funds report capital outlays as expenditures. However, in the statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense:

Capitalizable capital outlay, net of internal service fund capital additions of $501,553 9,883,534 Depreciation expense, net of internal service fund depreciation expense of $883,815 (3,517,864) Gain on disposal of capital assets
Revenues that do not provide current financial resources are not recognized as revenues in the governmental funds. 185,581
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position.

Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net position.

Principal paid on debt 1,189,895
Issuance of bonds - governmental activities portion (100,892,026) Lease issued (2,682,300)
Changes in net pension liability and related deferred outflows and inflows of resources reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds. 97,413,087
Changes in compensated absences which are not due and payable in the governmental funds are charged to expenses in the statement of activities. (9,210) Changes in net OPEB liability and related deferred outflows and inflows of resources reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds. 1,222,682
Interest on long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds. (659,585) Change in Net Position of Governmental Activities (6,144,464)$

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PROPRIETARY FUND FINANCIAL STATEMENTS

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CITY OF MONTEREY PARK
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(34)

Water Utility Refuse Sewer Total
ASSETS
Current Assets:

Cash and Investments 26,341,963$ 1,204,923$ 8,463,758 36,010,644$ Cash and Investments Held by Fiscal Agent 229 50 45 324 Accounts Receivable 5,002,321 823,711 424,306 6,250,338 Interest Receivable 23,826 971 6,530 31,327 Total Current Assets 31,368,339 2,029,655 8,894,639 42,292,633 Noncurrent Assets:

Nondepreciable Capital Assets 10,096,577 - - 10,096,577 Depreciable Capital Assets, Net of
Accumulated Depreciation 27,390,396 16,984 3,085,122 30,492,502 Total Capital Assets 37,486,973 16,984 3,085,122 40,589,079 Total Noncurrent Assets 37,486,973 16,984 3,085,122 40,589,079 Total Assets 68,855,312 2,046,639 11,979,761 82,881,712

DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to Pension Plans 4,307,072 942,237 911,649 6,160,958 Amounts Related to
Other Post Employment Benefit Plans 336,694 55,631 69,349 461,674 Total Deferred Outflows of Resources 4,643,766 997,868 980,998 6,622,632

LIABILITIES
Current Liabilities:

Accounts Payable 2,778,919 26,855 575,644 3,381,418 Accrued Payroll 33,186 2,751 9,451 45,388 Interest Payable 11,218 2,456 2,371 16,045 Deposits and Advances 495,191 - 24,859 520,050 Insurance Assessments Payable -
Due within One Year - - - - Claims and Judgments Payable - Due within One Year - - - - Capital Lease Obligations - Due within One Year 605,214 - - 605,214 Compensated Absences Payable -
Due within One Year 51,889 11,089 10,675 73,653 Bonds Payable -
Due within One Year 112,003 24,524 23,669 160,196 Total Current Liabilities 4,087,620 67,675 646,669 4,801,964

Noncurrent Liabilities:

Insurance Assessments Payable -
Due in More than One Year - - - - Claims and Judgments Payable -
Due in More than One Year - - - - Capital Lease Obligations - Due in More than One Year 7,310,033 - - 7,310,033 Compensated Absences Payable -
Due in More than One Year 467,004 99,799 96,073 662,876 Bonds Payable -
Due in More than One Year 3,693,519 808,712 780,547 5,282,778 Net Pension Liabilities 3,866,797 845,921 818,459 5,531,177 Net OPEB Liabilities 2,798,235 462,340 576,356 3,836,931 Total Noncurrent Liabilities 18,135,588 2,216,772 2,271,435 22,623,795 Total Liabilities 22,223,208 2,284,447 2,918,104 27,425,759

DEFERRED INFLOWS OF RESOURCES
Amounts Related to
Other Post Employment Benefit Plans 456,325 75,397 93,990 625,712 Total Deferred Inflows of Resources 456,325 75,397 93,990 625,712

NET POSITION
Net Investment in Capital Assets 29,518,960 16,984 2,930,499 32,466,443 Unrestricted 21,300,585 667,679 7,018,166 28,986,430 Total Net Position 50,819,545$ 684,663$ 9,948,665$ 61,452,873$ Adjustment to Reflect the Consolidation of Internal Service Funds Activities to Related Enterprise Fund (5,778,933) (804,213) - (6,583,146) Net Position of Business-type Activities 45,040,612$ (119,550)$ 9,948,665$ 54,869,727$ Enterprise

Page 111 of 278 ends

CITY OF MONTEREY PARK
STATEMENT OF NET POSITION – PROPRIETARY FUNDS (CONTINUED) JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(35)

Internal
Service
ASSETS
Current Assets:

Cash and Investments 9,437,699$
Cash and Investments Held by Fiscal Agent 622
Accounts Receivable -
Interest Receivable -
Total Current Assets 9,438,321
Noncurrent Assets:

Nondepreciable Capital Assets 858,555
Depreciable Capital Assets, Net of
Accumulated Depreciation 2,527,100
Total Capital Assets 3,385,655
Total Noncurrent Assets 3,385,655
Total Assets 12,823,976

DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to Pension Plans -
Amounts Related to
Other Post Employment Benefit Plans -
Total Deferred Outflows of Resources -

LIABILITIES
Current Liabilities:

Accounts Payable 241,049
Accrued Payroll 14,893
Interest Payable -
Deposits and Advances -
Insurance Assessments Payable -
Due within One Year 163,514
Claims and Judgments Payable - Due within One Year 3,264,457 Capital Lease Obligations - Due within One Year 367,394 Compensated Absences Payable -
Due within One Year 11,811
Bonds Payable -
Due within One Year -
Total Current Liabilities 4,063,118
Noncurrent Liabilities:

Insurance Assessments Payable -
Due in More than One Year 817,572
Claims and Judgments Payable -
Due in More than One Year 16,684,196
Capital Lease Obligations - Due in More than One Year 1,381,402 Compensated Absences Payable -
Due in More than One Year 106,297
Bonds Payable -
Due in More than One Year -
Net Pension Liabilities -
Net OPEB Liabilities -
Total Noncurrent Liabilities 18,989,467
Total Liabilities 2
3,052,585

DEFERRED INFLOWS OF RESOURCES
Amounts Related to
Other Post Employment Benefit Plans -
Total Deferred Inflows of Resources -

NET POSITION
Net Investment in Capital Assets 1,611,659
Unrestricted (11,840,268)
Total Net Position (10,228,609)$

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CITY OF MONTEREY PARK
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION –

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(36)

Water Utility Refuse Sewer Total

OPERATING REVENUES
Charges for Services 15,948,387$ 6,905,547$ 3,273,154$ 26,127,088$ Meter Installations 139,336 - - 139,336 Other Revenue 1,410 - - 1,410 Total Operating Revenues 16,089,133 6,905,547 3,273,154 26,267,834

OPERATING EXPENSES
Administration 3,349,317 1,010,781 - 4,360,098 Commercial - Water 1,209,198 - - 1,209,198 Production - Water 4,177,692 - - 4,177,692 Distribution - Water 1,559,533 - - 1,559,533 Treatment Plant 4,119,961 - - 4,119,961 Street Maintenance - Refuse - 16,859 - 16,859 Storm Drain Maintenance - Refuse - 8,449 - 8,449 Refuse Collection - 5,935,783 - 5,935,783 Sanitary Sewer Maintenance - - 2,542,347 2,542,347 Depreciation 1,525,984 1,427 275,610 1,803,021 Salaries and Benefits - - - - Materials and Supplies - - - - Insurance and Claims - - - - Miscellaneous - - - - Total Operating Expenses 15,941,685 6,973,299 2,817,957 25,732,941 Operating Income (Loss) 147,448 (67,752) 455,197 534,893

NONOPERATING REVENUES (EXPENSES)
Interest Revenue 18,680 5,773 28,942 53,395 Interest Expense (257,100) (2,456) (2,371) (261,927) Costs of Debt Issuance (28,032) (6,138) (5,924) (40,094) Total Nonoperating
Revenues (Expenses) (266,452) (2,821) 20,647 (248,626) Net Income (Loss) Before Capital
Contributions and Transfers (119,004) (70,573) 475,844 286,267 Capital Contributions 93,503 - - 93,503 Transfers In 45,893 - - 45,893 Transfers Out (397,920) (74,180) (107,580) (579,680) CHANGE IN NET POSITION (377,528) (144,753) 368,264 (154,017) Net Position, Beginning of Year 51,197,073 829,416 9,580,401 61,606,890 NET POSITION, END OF YEAR 50,819,545$ 684,663$ 9,948,665$ 61,452,873$ Changes in Net Position (377,528)$ (144,753)$ 368,264$ (154,017)$ Adjustment to Reflect the Consolidation of
Internal Service Fund Activities to
Related Enterprise Fund (673,204) (120,523) - (793,727) Changes in Net Position
of Business-type Activities (1,050,732)$ (265,276)$ 368,264$ (947,744)$ Enterprise

Page 113 of 278 ends

CITY OF MONTEREY PARK
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION –

PROPRIETARY FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(37)

Internal
Service

OPERATING REVENUES
Charges for Services 9,816,156$
Meter Installations -
Other Revenue 35,580
Total Operating Revenues 9,851,736

OPERATING EXPENSES
Administration -
Commercial - Water -
Production - Water -
Distribution - Water -
Treatment Plant -
Street Maintenance - Refuse -
Storm Drain Maintenance - Refuse -
Refuse Collection -
Sanitary Sewer Maintenance -
Depreciation 897,698
Salaries and Benefits 2,332,394
Materials and Supplies 1,335,255
Insurance and Claims 7,026,086
Miscellaneous 441,354
Total Operating Expenses 12,032,787
Operating Income (Loss) (2,181,051)

NONOPERATING REVENUES (EXPENSES)
Interest Revenue -
Interest Expense (64,305)
Costs of Debt Issuance -
Total Nonoperating
Revenues (Expenses) (64,305)
Net Income (Loss) Before Capital
Contributions and Transfers (2,245,356)
Capital Contributions -
Transfers In 1,000,000
Transfers Out (25,200)
CHANGE IN NET POSITION (1,270,556)
Net Position, Beginning of Year (8,958,053)
NET POSTION, END OF YEAR (10,228,609)$

Page 114 of 278 ends

CITY OF MONTEREY PARK
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(38)

Water Utility Refuse Sewer Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Receipts from Customers 15,638,740$ 6,830,260$ 3,236,763$ 25,705,763$ Cash Receipts from Interfund Services Provided - - - - Cash Receipts from Reimbursements and
Other Operating Revenue - - - - Cash Payments to Suppliers for Goods and Services (9,047,097) (6,486,581) (971,236) (16,504,914) Cash Payments to Employees for Services (8,334,036) (1,699,154) (1,766,673) (11,799,863) Cash Payments for Insurance Premiums
and Self-Insurance Claims - - - - Net Cash Provided (Used) by
Operating Activities (1,742,393) (1,355,475) 498,854 (2,599,014)

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Proceeds from Bonds Payable 3,805,522 833,236 804,216 5,442,974 Cash Received from Other Funds 45,893 - - 45,893 Cash Paid to Other Funds (397,920) (74,180) (107,580) (579,680) Net Cash Provided (Used) by
Noncapital and Related Financing Activities 3,453,495 759,056 696,636 4,909,187

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (1,144,336) - (844,580) (1,988,916) Capital Contributions 93,503 - - 93,503 Payment of Bond Issuance Costs (28,032) (6,138) (5,924) (40,094) Principal Paid on Lease Financing (551,053) - - (551,053) Interest Paid on Debt (245,882) - - (245,882) Net Cash Provided (Used) by
Capital and Related Financing Activities (1,875,800) (6,138) (850,504) (2,732,442)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 66,060 8,478 43,960 118,498 Net Cash Provided by Investing Activities 66,060 8,478 43,960 118,498

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (98,638) (594,079) 388,946 (303,771) Cash and Cash Equivalents, Beginning of Year 26,440,830 1,799,052 8,074,857 36,314,739 CASH AND CASH EQUIVALENTS, END OF YEAR 26,342,192$ 1,204,973$ 8,463,803$ 36,010,968$ Cash and Investments 26,341,963$ 1,204,923$ 8,463,758$ 36,010,644$ Cash and Investments with Fiscal Agent 229 50 45 324 Total Cash and Cash Equivalents 26,342,192$ 1,204,973$ 8,463,803$ 36,010,968$ Enterprise Funds

Page 115 of 278 ends

CITY OF MONTEREY PARK
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(39)

Internal
Service

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Receipts from Customers -$
Cash Receipts from Interfund Services Provided 9,816,156 Cash Receipts from Reimbursements and
Other Operating Revenue 35,580
Cash Payments to Suppliers for Goods and Services (1,684,836) Cash Payments to Employees for Services (2,330,867)
Cash Payments for Insurance Premiums
and Self-Insurance Claims (5,653,260)
Net Cash Provided (Used) by
Operating Activities 182,773

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Proceeds from Bonds Payable -
Cash Received from Other Funds 1,000,000
Cash Paid to Other Funds (25,200)
Net Cash Provided (Used) by
Noncapital and Related Financing Activities 974,800

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (536,117) Capital Contributions -
Payment of Bond Issuance Costs -
Principal Paid on Lease Financing (355,952)
Interest Paid on Debt (64,305)
Net Cash Provided (Used) by
Capital and Related Financing Activities (956,374)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received -
Net Cash Provided by Investing Activities -

NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 201,199
Cash and Cash Equivalents, Beginning of Year 9,237,122
CASH AND CASH EQUIVALENTS, END OF YEAR 9,438,321$
Cash and Investments 9,437,699$
Cash and Investments with Fiscal Agent 622
Total Cash and Cash Equivalents 9,438,321 $

Page 116 of 278 ends

CITY OF MONTEREY PARK
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(40)

Water Utility Refuse Sewer Total

RECONCILIATON OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES
Operating Income (Loss) 147,448$ (67,752)$ 455,197$ 534,893$ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 1,525,984 1,427 275,610 1,803,021 Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (450,393) (75,287) (36,391) (562,071) (Increase) Decrease in Deferred Outflows of
Resources - Pension Plans (3,744,253) (819,112) (792,521) (5,355,886) (Increase) Decrease in Deferred Outflows of
Resources - OPEB Plan (27,609) (4,562) (5,686) (37,857) Increase (Decrease) in Accounts Payable 817,695 (408,857) 560,415 969,253 Increase (Decrease) in Accrued Payroll 2,929 (2,842) 1,173 1,260 Increase (Decrease) in Deposits and Advances 47,752 - 10,634 58,386 Increase (Decrease) in
Insurance Assessment Payable - - - - Increase (Decrease) in Claims and
Judgments Payable - - - - Increase (Decrease) in
Compensated Absences Payable (27,530) 21,626 36,919 31,015 Increase (Decrease) in Net Pension Liabilities 171,606 38,781 37,521 247,908 Increase (Decrease) in Net OPEB Liability 7,127 242 302 7,671 Increase (Decrease) in Deferred Inflows of
Resources - Pension Plans (73,264) (16,027) (15,507) (104,798) Increase (Decrease) in Deferred Inflows of
Resources - OPEB Plan (139,885) (23,112) (28,812) (191,809) Total Adjustments (1,889,841) (1,287,723) 43,657 (3,133,907) Net Cash Provided (Used) by
Operating Activities (1,742,393)$ (1,355,475)$ 498,854$ (2,599,014)$ Enterprise Funds

Page 117 of 278 ends

CITY OF MONTEREY PARK
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(41)

Internal
Service

RECONCILIATON OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES
Operating Income (Loss) (2,181,051)$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
Depreciation 897,698
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable -
(Increase) Decrease in Deferred Outflows of
Resources - Pension Plans -
(Increase) Decrease in Deferred Outflows of
Resources - OPEB Plan -
Increase (Decrease) in Accounts Payable 52,276
Increase (Decrease) in Accrued Payroll (8,490)
Increase (Decrease) in Deposits and Advances -
Increase (Decrease) in
Insurance Assessment Payable (163,514)
Increase (Decrease) in Claims and
Judgments Payable 1,575,837
Increase (Decrease) in
Compensated Absences Payable 10,017
Increase (Decrease) in Net Pension Liabilities -
Increase (Decrease) in Net OPEB Liability -
Increase (Decrease) in Deferred Inflows of
Resources - Pension Plans -
Increase (Decrease) in Deferred Inflows of
Resources - OPEB Plan -
Total Adjustments 2,363,824
Net Cash Provided (Used) by
Operating Activities 182,773 $

Page 118 of 278 ends

CITY OF MONTEREY PARK

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(42)

Private-Purpose
Trust Fund

CURRENT ASSETS
Cash and Investments 547,905$
Cash and Investments with Fiscal Agent 1,885,431
Total Assets 2,433,336

CURRENT LIABILITIES
Accounts Payable 1,279
Interest Payable 176,654
Current Portion of Noncurrent Liabilities 2,043,189
Total Current Liabilities 2,221,122

NONCURRENT LIABILITIES
Advances from City of Monterey Park 1,170,993
Bonds Payable, Net of Current Portion 10,399,191
Tax Increment Deferred Loans 76,361,380
Low/Mod Housing Deferred Loans 1,186,222
Total Noncurrent Liabilities 89,117,786
Total Liabilities 91,338,908

NET POSITION (DEFICIT)
Net Position (Deficit) Held in Trust for
Debt Service and Certain Administrative Expenses (88,905,572) $

Page 119 of 278 ends

CITY OF MONTEREY PARK

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2021

See accompanying Notes to Basic Financial Statements.
(43)

Private-Purpose
Trust Fund

ADDITIONS
Redevelopment Property Tax Trust Fund 2,855,119$
Investment Income 270
Total Additions 2,855,389

DEDUCTIONS
Administration 190,001
Interest Expense and Fiscal Charges 5,378,475
Total Deductions 5,568,476
CHANGE IN NET POSITION (2,713,087)
Net Position, Beginning of Year (86,192,485)
NET POSITION, END OF YEAR (88,905,572)$

Page 120 of 278 ends

(44)

THIS PAGE INTENTIONALLY LEFT BLANK

Page 121 of 278 ends

CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(45)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Reporting Entity
The City of Monterey Park, California (the City) was incorporated May 29, 1916 under the general laws of the State of California and enjoys all the rights and privileges pertaining to General Law cities. The City is governed by an elected five-member City Council. As required by generally accepted accounting principles in the United States of America, the financial statements include the fin ancial activities of the City (the primary government), the Monterey Park Public Financing Authority, and the Monterey Park Housing Authority. These blended component units are discussed below and are included in the reporting entity because of the significance of their operational and financial relationship with the City.

Blended Component Units
The Monterey Park Public Financing Authority
The Monterey Park Public Financing Authority (the Financing Authority) was organized in May 1989 under a joint exercise of power agreement to provide for the financing of public capital improvements for the City and the former Redevelopment Agency of Monterey Park. The members of the City Council act as the governing board of the Financing Authority and there is a financial benefit or burden relationship between the City and the Financing Authority. The Financing Authority does not issue separate financial statements.

The Monterey Park Housing Authority
The Monterey Park Housing Authority (the Housing Authority) was established in September 1992 to provide affordable housing within the City. The members of the City Council act as the governing board of the Housing Authority and there is a financial benefit or burden relationship between the City and the Housing Authority.

The Housing Authority does not issue separate financial statements.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. The effect of interfund activity has been removed from these statements and eliminations have been made to minimize the double counting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Page 122 of 278 ends

CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(46)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The City’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States.

The government-wide and proprietary fund financial statements are reported using the “economic resources” measurement focus and the accrual basis of accounting.

Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due.

The primary revenue sources susceptible to accrual are property taxes, sales taxes, state gas tax subventions, franchise fees, transient occupancy tax, charges for services, and interests associated with the current fiscal period and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:

The General Fund is the general operating fund of the City. All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other funds are accounted for in this fund. General operating expenses and capital improvement costs which are not paid through other funds, are paid from this fund.

Page 123 of 278 ends

CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(47)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The Special Revenue Grants Fund was established to account for the grants requiring segregated fund accounting. Financing is provided by federal, state and county agencies.

The Special Revenue Retirement/Pension Liability Fund was established to account for revenue received from voter-approved prope rty tax levied to provide for employee retirement costs, as established pursuant to Monterey Park Municipal Code Section

2.40.060 and to account for the financial resources provided by the City in anticipation of estimated increases in retirement costs.

The Special Revenue Housing Fund is used to account for housing activities for the City and revenue received from housing loan repayments and rental income.

The City reports the following major proprietary funds:

The Water Utility Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises and where the intent of the City is that the costs (expenses, including depreciation) of providing goods services to the general public on a continuing basis be financed or recovered primarily through user charges. The City accounts for its water utility in this fund.

The Refuse Enterprise Fund is used to account for receipts and expenditures relating to waste management activities including refuse collection, disposal and reduction.

The Sewer Enterprise Fund is used to account for receipts and expenses for construction and improvement to deficient sanitary mains identified in the Sewer Master Plan.

Additionally, the City reports the following fund types:

Nonmajor Governmental Funds
The Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes.

Proprietary Fund (Internal Service Funds)
The Internal Service Funds are utilized to finance and account for activities involved in rendering services to departments within the City. Costs of services are accumulated in these funds and charged to user departments as such costs are incurred. The City maintains five internal service funds for general liability claims, workers’ compensation claims, auto shop operations, separation benefits, and technology development.

Fiduciary Fund
The Private Purpose Trust Fund is used to account for activities of the Successor Agency to the Former Monterey Park Redevelopment Agency (the Successor Agency).

Page 124 of 278 ends

CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(48)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Fiduciary Fund (Continued)

The private-purpose trust fund is reported using the accrual basis of accounting and the economic resources measurement focus.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in- lieu of taxes and other charges paid by the government’s enterprise funds to various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to members, customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.

Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses genera lly result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Utility Enterprise Fund, Refuse Enterprise Fund, Sewer Enterprise Fund, and of the government’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

D. Property Taxes
Under California law, property taxes are assessed and collected by the counties at 1% of assessed value plus other increases approved by the voters. Property taxes collected go into a pool and are then allocated to the cities based on a predetermined formula. The City accrues only those taxes which are received from the County of Los Angeles within 60 days after year-end.

Lien Date: January 1
Levy Date: June 30
Due Dates: November 1, February 1
Delinquent Dates: December 11, April 11

Page 125 of 278 ends

CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(49)

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Cash and Cash Equivalents
For purposes of the statements of cash flows, the City considers cash and all highly liquid investments with original maturities of three months or less from date purchased as cash and cash equivalents. In addition, funds invested in the City’s cash management pool are considered cash equivalents.

F. Investments
Investments are reported in the accompanying financial statements at fair value which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments in external pools are valued based on the stated fair value represented by the external pool.

G. Inventories and Prepaid Assets
Inventories held by the Internal Service Funds are recorded at cost on a first-in, first-out basis. The inventories consist primarily of repair parts, fuel and oil. The City uses the consumption method for inventory control. The treatment accorded prepaid assets in the governmental funds is the consumption method.

H. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, sidewalks, drainage systems, lighting systems, etc.), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. These assets are valued at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are valued at their acquisition value.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of assets are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The capitalization threshold for property, plant and equipment is $5,000 and for infrastructure assets is $200,000. Depreciation is recorded in the government-wide financial statements on a straight-line basis over the useful life of the assets.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets (Continued)
Depreciation is charged to operations, using a straight-line method based on the following average useful lives of the assets:

Equipment 5 to 20 years
Buildings 40 to 50 years
Improvements 10 to 50 years
Water Meters 20 years
Water Mains 40 to 75 years
Water Hydrants 40 years
Wells 40 years
Other Water Equipment 5 to 40 years

Infrastructure:

Roadway 25 years
Bridge 40 years
Sewer System 50 years
Streetlight 20 years
Traffic Signal 20 years

I. Compensated Absences
The cost of earned but unused vacation and sick leave, for which the City has a future obligation to pay, is recognized in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they become due and payable as a result of employee resignations or retirements.

J. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 10). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms.

Investments are reported at fair value.

Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over five years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s California Public Employees Medical and Hospital Care Act (PEMCHA) plans (OPEB Plans) and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by PEMCHA. For this purpose, the City’s O PEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future pension expense. The am ortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over five years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

L. Claims and Judgments
The accrual for workers’ compensation and general liability claims is based upon past experience which has been modified for current trends and information. While the ultimate amount of losses incurred through June 30, 2021 is dependent on future developments, based on information from the plan administrators, City management believes that the aggregate accrual is adequate to cover such losses, including amounts for incurred but not reported claims (Note 12).

M. Fund Equity and Net Position
In the governmental fund financial statements, fund balances are classified as follows:

Nonspendable Fund Balance - This amount indicates the portion of fund balances which cannot be spent because they are either not in spendable form, such as prepaid items, inventories or loans receivable, or legally or contractually required to be maintained intact, such as the principal portion of an endowment.

Restricted Fund Balance - This amount indicates the portion of fund balances which has been restricted a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Fund Equity and Net Position (Continued)
Committed Fund Balance - This amount indicates the portion of fund balances which can only be used for specific purposes pursuant to formal resolution or ordinance of the City Council. The City Council is considered the highest authority for the City.

Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

Assigned Fund Balance - This amount indicates the portion of fund balances which is constrained by the City’s intent to be used for specific purpose, but is neither restricted nor committed. The City Manager is authorized by the City Council by resolution to determine and define the amount of assigned fund balances.

Unassigned Fund Balance - This amount indicates the portion of fund balances that do not fall into one of the above categories. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

When expenditures are incurred for purposes in which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, and then unrestricted fund balances as they are needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

Net position represents the difference between all other elements in the statement of net position and should be displayed in the following three components:

Net Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of liabilities that are attributable to the ac quisition, construction, or improvement of those assets.

Restricted - This component of net position consists of restricted amounts by external creditors, grantors, contributors, or laws or regulations of other governments.

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

When expenses are incurred for purposes in which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position assets first.

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Use of Estimates
The preparation of the basic financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.

O. Implementation of New Accounting Pronouncements
GASB Statement No. 84, Fiduciary Activities became effective for fiscal years beginning after December 15, 2019. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City has implemented this Statement.

The implementation of this Statement required the City to eliminate the previously reported fiduciary agency fund and include any relevant activity as part of City’s general fund. As a result, beginning net position of the governmental activities and beginning fund balance of the general fund and grants special revenue fund were restated. See Note 16 for further details.

NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2021, are classified in the accompanying financial statements as follows:

Governmental Business-Type Fiduciary
Activities Activities Total Funds Total
Cash and Investments 73,981,573$ 36,010,644$ 109,992,217$ 547,905$ 110,540,122$ Held by Fiscal Agent 40,194 324 40,518 1,885,431 1,925,949 Total Cash and
Investments 74,021,767$ 36,010,968$ 110,032,735$ 2,433,336$ 112,466,071$ Government-Wide

Cash and investments at June 30, 2021, consisted of the following:

Deposits:

Cash on Hand 28,550 $
Demand Deposits with Financial Institutions 8,125,726
Time Certificates of Deposit 250,000
Total Cash 8,404,276
Investments:

Negotiable Certificates of Deposit 742,955
Local Agency Investment Fund (LAIF) 92,703,913
Los Angeles County Treasury Pool 8,689,597
Money Market Mutual Fund 1,925,330
Total Investments 104,061,795
Total Cash and Investments 112,466,071 $

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and Investments (Continued)
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by outside fiscal agents under the provisions of bond indentures.

Interest income earned on pooled cash and investments is allocated quarterly to the General Fund and certain designated Special Revenue Funds based on the month-end cash and investment balances. Proceeds obtained from long-term debt issuances including construction, lease payment and reserve fund balances are held by the City or by fiscal agents on behalf of the City and invested in the City’s name. Interest income on proceeds of debt is credited directly to the related fund, as defined by the Bond Indenture.

Tax allocation bonds reserve balances held by fiscal agents were transferred to the Successor Agency from the Former Monterey Park Redevelopment Agency and were reported in the Fiduciary Fund.

Deposits
At June 30, 2021, the carrying amount of the City’s demand deposits was $8,125,726 and the bank balance was $8,857,471. The $731,745 difference represents outstanding checks, deposits in transit, and other reconciling items.

Investments Authorized by the City’s Investment Policy
Under provisions of the City’s investment policy and in accordance with Section 53601 of the California Government Code, the City may invest in the types of investments listed in the table below. The table also identifies certain provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk.

Investment Type Maximum
Maturity
Maximum
Specified % of
Portfolio
Minimum Quality
Requirements
Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
State Obligations - CA and Others 5 years None None
U.S. Agency Obligations 5 years None None
Collateralized Bank Deposits 5 years None None
Medium Term Notes issued by
Corporations
5 years 30% "A" or better ranking by
nationally recognized rating
service; U.S. domiciled
corporations or licensed
depository
Local Agency Investment Funds
(LAIF)
N/A None None

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the City’s Investment Policy (Continued) Investment Type Maximum
Maturity
Maximum
Specified % of
Portfolio
Minimum Quality
Requirements
Los Angeles County Pooled
Investment Fund
None 10% of LACPIF
pool balance
None
Mutual Funds & Money Market
Mutual Funds
N/A
20% Highest ranking by not less
than 2 largest rating services,
have an SEC registered
investment advisor with 5+
years experience, assets
under management >$500
million
Banker's Acceptance 180 days 40% of portfolio
(no more than
30% in any once
commercial
bank)
None
Commercial Paper 270 days 40% of portfolio
for counties,
cities, and other
local agencies
(no more than
10% of agency's
money in the
commercial
paper)
"A" or higher rating for
issuer's debt within U.S.
corporations and have assets
in excess of $500 million.

Repurchase Agreements Not
allowable
Not allowable Not allowable
Negotiable Certificates of Deposit 5 years 30% None
Financial Futures & Financial
option contracts
5 years None None
Reverse Repurchase Agreements
& Securities Lending Agreements
Not
allowable Not allowable Not allowable
Mortgage Pass-Through Securities 5 years 20% "A" or better ranking by nationally recognized rating
service

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
In addition to the investment types listed above, the City may also invest appropriate funds in money market mutual funds and LAIF in accordance with bond indentures.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. LAIF, LACPIF, and negotiable certificates of deposit do not have a rating provided by a nationally recognized statistical rating organization. U.S. treasury bills are not required to be rated.

Concentration of Credit Risk
The investment policy of the City, as summarized above, contains certain limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There are no investments in any one issuer that represent more than 5% of total City investments.

Custodial Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The City’s investment policy contains the following policy requirements that would limit the exposure to custodial credit risk for deposits: The City’s investment policy limits investments in Certificates of Deposit to those insured up to $250,000 by the Federal Deposit Insurance Corporation.

The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of the face value of the deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits. The City may waive collateral requirements for deposits which are fully insured by federal depository insurance. However, the City has not waived the collateralization requirements. At June 30, 2021, City deposits were either insured by federal depository insurance or collateralized.

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk (Continued)
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the remaining maturity of each investment:

Minimum
and Actual Fair Value 12 Months 1 to 2 2 to 3
Rating June 30, 2021 or Less Years Years
Investments:

Negotiable Certificates of Deposit N/A 742,955 $ 742,955 $ LAIF N/A 92,703,913 92,703,913
Los Angeles County Treasury Pool N/A 8,689,597 8,689,597 Total Treasury Investments 102,136,465 102,136,465 - - Investments Held by Fiscal Agents:

Money Market Mutual Fund AAA 1,925,330 1,925,330 Total Investments Held by Fiscal Agents 1,925,330 1,925,330 - - Total Investments 104,061,795$ 104,061,795$ -$ -$ Maturity

Investment in State Investment Pool
The City is a voluntary participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s prorated share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

The City’s investments with LAIF at June 30, 2021, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities:

Structured Notes – Debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities – Generally mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $92,703,913 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured notes and Medium-term Asset-backed Securities.

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NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investment in Los Angeles County Investment Pool
The City is a voluntary participant in the Los Angeles County Investment Pool pursuant to Government Code Section 53684. The cash flow needs of participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of those participants. At the time deposits are made, the Los Angeles County Investment Pool’s Treasurer may require the depositing entity to provide annual cash flow projections or an anticipated withdrawal schedule for deposits in excess of $1 million. Projections are to be performed no less than semi-annually. In accordance with Government Code Section 27136, all requests for withdrawal of funds for the purpose of investing or depositing the funds elsewhere shall be evaluated to ensure the proposed withdrawal will not adversely affect the principal deposits of the other participants. At June 30, 2021, the City had $8,689,597 invested in the Los Angeles County Investment Pool.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices of similar assets in active markets, and Level 3 inputs are significant unobservable inputs.

The fair value of the City’s investments in negotiable certificates of deposit were determined using Level 2 inputs (quoted prices of similar assets in active markets). The City’s other investments were not subject to the fair value hierarchy requirement.

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NOTE 3 RECEIVABLES
Receivables of the City as of June 30, 2021, were:

Governmental Business-Type
Activities Activities Total
Accounts Receivable:

Property Taxes 907,809 $ - $ 907,809$ Sales Taxes 1,978,812 - 1,978,812 Utility Taxes 250,047 - 250,047 Water, Sewer, and Refuse Sales - 6,250,338 6,250,338 Subvention and Grants 664,856 - 664,856 Other 333,672 - 333,672 Total Accounts Receivable 4,135,196 $ 6,250,338 $ 10,385,534 $ Interest Receivable 39,462$ 31,327$ 70,789$ Loans Receivable, Net:

Residential Rehabilitation (CDBG) (Note 9) 48,015$ -$ 48,015$ SERA Program (Note 9) 4,322 - 4,322 Pacific Housing Loan (Note 9) 256,705 - 256,705 Pacific Bridge Loan (Note 9) 427,425 - 427,425 First-Time Homebuyers (Housing) 60,323 - 60,323 Critical Maintenance (Housing) 45,561 - 45,561 Critical Maintenance (Grants) 1,116,614 - 1,116,614 Abajo del Sol Loan (Grants) 2,345,877 - 2,345,877 LINC Community Development (Housing) 2,419,131 - 2,419,131 LINC Community Development (Grants) 969,321 - 969,321 Low/Mod Housing Deferred Loans 1,186,222 - 1,186,222 Subtotal 8,879,516 - 8,879,516 Less: Allowance for Uncollectible Loans (6,956,827) - (6,956,827) Total Loans Receivable, Net 1,922,689$ -$ 1,922,689$ T
otal Receivables 6,097,347$ 6,281,665$ 12,379,012$

Following is the detail of Loans Receivable:

A. Residential Rehabilitation – The City provided low interest financing for the rehabilitation of residential sites within the City through the Community Development Block Grant program. The amount of outstanding loan balance at June 30, 2021, is $48,015 and has been recorded as notes receivable in the Special Revenue Grants Fund.

B. SERA Program – The City participated in the State Earthquake Rehabilitation Assistance (SERA) program to assist residents with the application and loan processes for residential repairs and rehabilitation following the October 1987 Whittier-Narrows earthquake. The outstanding balance of loans placed through the program is $4,322 at June 30, 2021, and has been recorded as notes receivable in the Special Revenue Grants Fund.

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NOTE 3 RECEIVABLES (CONTINUED)
C. Pacific Housing Loan – On July 21, 2004, the City entered into an agreement to provide a loan to Pacific Housing Development Corporation for the purpose of construction and renovation of an affordable housing facility for persons with developmental disabilities.

The loan, funded in April 2005, consists of a permanent residual receipts loan in the amount of $175,000 and a subordinated construction loan in the amount of $225,000.

The subordinated construction loan has been paid off by Pacific Housing in 2008-09.

Other remaining amounts bear interest at the rate of 3% per annum until paid. The loan was funded by use of Federal HOME Program funds and is reported in the Special Revenue Grants Fund. At June 30, 2021, outstanding principal and interest are $175,000 and $81,705, respectively.

D. Pacific Bridge Loan – In 1995, the former Redevelopment Agency entered into a thirty- year loan agreement with Pacific Bridge Housing Corporation for the purpose of construction and renovation of a disabled adult affordable housing facility. In the agreement the former Redevelopment Agency agreed to loan to Pacific Bridge Housing Corporation up to the maximum sum of $240,478 bearing interest at the rate of 3% per annum until paid. Principal and interest payments are due in annual installments commencing upon February 15 of the first full calendar year following the date of the initial occupancy of the facility and continuing annually thereafter on each successive February 15 through and including the date which is thirty (30) years after the Repayment Commencement Date. The amount of such annual installments payable by Borrower is based on the Annual Residential Receipt Installments as described in the agreement. During 1996-97, the loan was funded by the use of federal HOME Program funds, and is reported in the Special Revenue Grants Fund. At June 30, 2021, outstanding principal and interest are $240,478 and $186,947, respectively.

E. First Time Homebuyers – Beginning 1996-97, the City provided second mortgage loans through the First-Time Homebuyer Program to assist qualified first-time homebuyers to purchase residences. All second loans will be fixed at an interest rate of five percent (5%) and for a term of thirty (30) years. If the buyer retains the property for thirty (30) years, both principal and interest will be forgiven. The loans were transferred from the former Redevelopment Agency’s Housing Capital Projects Fund to the City’s Special Revenue Housing Fund on February 1, 2012 due to the dissolution of the former Redevelopment Agency. At June 30, 2021, $60,323 is the amount of outstanding loan balances, and has been reported as notes receivable with an offset of allowance for uncollectible notes in the Special Revenue Housing Fund in the fund level financial statements and in the government-wide statements.

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NOTE 3 RECEIVABLES (CONTINUED)
F. Critical Maintenance – Beginning in 1997-98, the City offered low interest rate loans through the Critical Maintenance Loan Program to assist low and moderate income homeowners for essential or emergency repairs. At June 30, 2021, the loans outstanding totaled $1,162,175. Of this amount, $45,561 is funded by the former Redevelopment Agency’s Housing Capital Projects Fund and $1,116,614 is funded by the Federal HOME Program Grants Fund. The outstanding loan balance of $45,561 was transferred from the former Redevelopment Agency’s Housing Set Aside Fund to the City’s Special Revenue Housing Fund and has been reported as notes receivable with an offset of allowance for uncollectible notes in the fund level financial statements and in the government-wide statements. The outstanding loan balance of $1,116,614 has been reported as notes receivable with an offset of allowance for uncollectible notes in the Special Revenue Grants Fund in the fund level financial statements and in the government-wide statements.

G. Abajo del Sol – In 1998, the Housing Authority and the Abajo del Sol, Limited Partnership had entered into a housing dev elopment agreement. Under the agreement, the Authority provided to the Developer a $1.2 million loan bearing interest at the rate of

5.1% per annum for the construction of 60 units of affordable housing for senior citizens.

On or before March 15
th of each year, the Borrower shall pay lender an amount equal to the applicable percentage of the Net Cash Flow attributable to the prior calendar year.

The loan is funded by the Federal HOME Program Grants Fund. At June 30, 2021, outstanding principal and interest being recorded as notes receivable are $1,187,344 and $1,158,533, respectively, in the Special Revenue Grants Fund with an offset of allowance for uncollectible notes in the fund level financial statement and in the government-wide statements.

H. LINC Community Development – In 2015, the Monterey Park Successor Housing Agency and City entered into a housing development agreement with LINC Community Development Corporation (LINC). Under the agreement, the Monterey Park Successor Housing Agency sold 5 properties to the developer in exchange for a $2,080,000 loan bearing compound interest at the rate of 2.41% per annum for 5 units of affordable rental housings. At June 30, 2021, outstanding principal and interest being recorded as notes receivable are $2,080,000 and $339,131, respectively, in the Housing Fund with an offset of allowance for uncollectible notes in the fund level financial statement and in the government-wide statements. The properties were purchased with former Redevelopment Agency’s Housing Set Aside fund. As a result, the loan was reported in the City’s Special Revenue Housing Fund and with an offset of allowance for uncollectible notes in the fund level financial statements and in the government-wide statements. As part of the development agreement, the City also sold one of the City’s parking lots to the LINC for development of a 6-unit affordable rental housing. The City also used the Federal HOME Program Grants Fund to provide construction loan bearing simple interest at the rate of 3% per annum. As of June 30, 2021, $969,321 has been funded and is reported as loans receivables in the Special Revenue Grants Fund with an offset of allowance for uncollectible notes in the fund level financial statement and in the government-wide statements.

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NOTE 3 RECEIVABLES (CONTINUED)
I. Low/Mod Housing Deferred Loans – State law requires redevelopment agencies to set aside 20% of their tax increment revenues for low/mod housing. In 1997, the former Redevelopment Agency approved a plan to set aside future tax increment revenue in addition to the regular 20% set aside requirements. The former Redevelopment Agency was dissolved on February 1, 2012. This commitment became a liability to the Successor Agency due to the City’s Special Revenue Housing Fund. A summary of the repayment plan is presented below:

For the Years Ending June 30, Amount
2024 - 2029 500,000$
2030 - 2034 450,000
2035 - 2039 236,222
1,186,222$

NOTE 4 INTERFUND TRANSACTIONS
Individual interfund receivables and payables were as follows at June 30, 2021:

Due to/from Other Funds

Due from Other Funds Due to Other Funds Amount
General Fund Special Revenue Grants Fund 413,383$
General Fund Special Revenues Retirement/Pension
Fund 113,578
General Fund Nonmajor Governmental Funds 336,705
863,666$

The interfund balances resulted from borrowing of cash for temporary purposes. All balances are expected to be reimbursed within the subsequent year.

Transfers
Transfers In Transfers Out Amount
General Fund Grants Special Revenue Fund 1,255,421$
Grants Special Revenue Fund General Fund 13,842
Retirement/Pension Liability Special Revenue Fund General Fund 2,572,952 Retirement/Pension Liability Special Revenue Fund Water Utilities Enterprise Fund 397,920 Retirement/Pension Liability Special Revenue Fund Refuse Enterprise Fund 74,180 Retirement/Pension Liability Special Revenue Fund Sewer Enterprise Fund 107,580 Retirement/Pension Liability Special Revenue Fund Nonmajor Governmental Funds 41,100 Retirement/Pension Liability Special Revenue Fund Internal Service Funds 25,200 Water Utilities Enterprise Fund Grants Special Revenue Fund 45,893 General Liability Internal Service Fund General Fund 1,000,000 5,534,088$

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NOTE 4 INTERFUND TRANSACTIONS (CONTINUED)
Transfers (Continued)
Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend. In 2020-21, transfers to the Retirement/Pension Liability Special Revenue Fund were council-approved pension and OPEB contributions. The transfer of $1,255,421 from the Grants Special Revenue Fund to the General Fund was to close out inactive grants. The transfer of $13,842 from the General Fund to the Special Revenues Grant Fund was to classify qualifying grant expenditures. The transfer of $45,893 from the Grants Special Revenue Fund to the Water Utilities Enterprise Fund was to reclassify the activity related to the Watersmart Grant. The transfer of $1,000,000 from the General Fund to the General Liability Internal Service Fund was to reduce the fund’s deficit net position.

NOTE 5 RECEIVABLES FROM SUCCESSOR AGENCY
In 2009, the State passed legislation in ta king away redevelopment funds from local Agencies as part of an effort to address its budget deficit. Furthermore, SB 68 was signed into law which allowed agencies to use accumulated housing funds to pay for the State required Supplemental Educational Revenue Augmentation Funds (SERAF) payments. On August 4, 2010, the former Redevelopment Agency passed two resolutions, RA 661 and 662, authorizing the Takeaway Loan to be made from the former Redevelopment Agency Capital Projects Fund (Housing Set Aside Fund) to the former Redevelopment Agency Debt Service Fund (Atlantic-Garvey and Merged Project Areas), in an amount of $1,459,258 and $1,142,640, respectively, without interest.

On May 4, 2011, the former Redevelopment Agency passed two resolutions, RA 682 and 683, authorizing additional Takeaway Loans to be made from the Redevelopment Agency Capital Projects Fund (Housing Set Aside Fund) to the Redevelopment Agency Debt Service Fund (Atlantic-Garvey and Merged Project Areas), in an amount of $300,436 and $235,249, respectively. The interest is accumulated at LAIF rate.

On February 1, 2012, $2,617,203 was transferred from the former Redevelopment Agency Debt Service Fund to the Successor Agency due to the dissolution of the former Redevelopment Agency.

The Receivable from Successor Agency bal ance at June 30, 2021, amounted to $1,170,992. This loan will be paid back to the Special Revenue Housing Fund according to a specific formula through the Recognized Ob ligation Payment Schedule distribution per the State of California Department of Finance (DOF).

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NOTE 6 CAPITAL ASSETS
At June 30, 2021, the capital assets balances for the City are as follows:

Governmental Business-Type
Activities Activities Total
Capital Assets, Not Being Depreciated:

Land 8,465,051 $ 499,975 $ 8,965,026 $
Construction in Progress 6,622,326 9,596,602 16,218,928 Total Capital Assets,
Not Being Depreciated 15,087,377 10,096,577 25,183,954 Capital Assets, Being Depreciated:

Buildings 30,391,663 285,050 30,676,713 Improvements 22,259,677 55,649,214 77,908,891 Equipment 30,896,545 3,690,041 34,586,586 Infrastructure 34,103,154 11,627,514 45,730,668 Total Capital Assets,
Being Depreciated 117,651,039 71,251,819 188,902,858 Less Accumulated Depreciation:

Buildings (15,567,995) (147,969) (15,715,964) Improvements (7,140,643) (28,013,864) (35,154,507) Equipment (24,454,416) (3,305,419) (27,759,835) Infrastructure (23,779,752) (9,292,065) (33,071,817) Total Accumulated Depreciation (70,942,806) (40,759,317) (111,702,123) Total Capital Assets,
Being Depreciated, Net 46,708,233 30,492,502 77,200,735 Total Capital Assets, Net 61,795,610 $ 40,589,079 $ 102,384,689 $

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NOTE 6 CAPITAL ASSETS (CONTINUED)
Governmental Activities
A summary of changes in capital asset activity for the year ended June 30, 2021, is as follows:

Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital Assets, Not Being Depreciated:

Land 8,465,051$ -$ -$ -$ 8,465,051$ Construction in Progress 2,149,584 7,436,385 - (2,963,643) 6,622,326 Total Capital Assets,
Not Being Depreciated 10,614,635 7,436,385 - (2,963,643) 15,087,377 Capital Assets, Being Depreciated:

Buildings 30,391,663 - - - 30,391,663 Improvements 20,169,576 74,323 - 2,015,778 22,259,677 Equipment 28,208,915 2,888,260 (959,113) 758,483 30,896,545 Infrastructures 33,913,772 - - 189,382 34,103,154 Total Capital Assets,
Being Depreciated 112,683,926 2,962,583 (959,113) 2,963,643 117,651,039 Less Accumulated Depreciation:

Buildings (14,975,062) (592,933) - - (15,567,995) Improvements (6,482,874) (657,769) - - (7,140,643) Equipment (23,626,489) (1,787,040) 959,113 - (24,454,416) Infrastructures (22,415,815) (1,363,937) - - (23,779,752) Total Accumulated Depreciation (67,500,240) (4,401,679) 959,113 - (70,942,806) Total Capital Assets,
Being Depreciated, Net 45,183,686 (1,439,096) - 2,963,643 46,708,233 Total Capital Assets, Net 55,798,321$ 5,997,289$ -$ -$ 61,795,610$

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NOTE 6 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
A summary of changes in capital asset activity for the year ended June 30, 2021, is as follows:

Balance at Balance at
July 1, 2020 Additions Deletions Transfers June 30, 2021 Capital Assets, Not Being Depreciated:

Land 499,975$ -$ -$ -$ 499,975$ Construction in Progress 8,830,343 1,988,917 - (1,222,658) 9,596,602 Total Capital Assets,
Not Being Depreciated 9,330,318 1,988,917 - (1,222,658) 10,096,577 Capital Assets, Being Depreciated:

Buildings 285,050 - - - 285,050 Improvements 55,212,933 - - 436,281 55,649,214 Equipment 3,591,657 - - 98,384 3,690,041 Infrastructures 10,939,521 - - 687,993 11,627,514 Total Capital Assets,
Being Depreciated 70,029,161 - - 1,222,658 71,251,819 Less Accumulated Depreciation:

Buildings (143,127) (4,842) (147,969) Improvements (26,537,655) (1,476,209) (28,013,864) Equipment (3,095,945) (209,474) (3,305,419) Infrastructures (9,179,569) (112,496) (9,292,065) Total Accumulated Depreciation (38,956,296) (1,803,021) - - (40,759,317) Total Capital Assets,
Being Depreciated, Net 31,072,865 (1,803,021) - 1,222,658 30,492,502 Total Capital Assets, Net 40,403,183$ 185,896$ -$ -$ 40,589,079$

Depreciation expense was charged to the following functions:

Governmental Business-Type
Activities Activities Total
General Government 246,155 $ - $ 246,155$ Public Safety 1,406,896 - 1,406,896 Public Safety/Shop 380,516 48,472 428,988 Community Development 41,735 - 41,735 Culture and Recreation 785,091 3,852 788,943 Street and Highways 1,541,286 22,265 1,563,551 Water Utility - 1,489,655 1,489,655 Sewer - 238,777 238,777 Total 4,401,679 $ 1,803,021 $ 6,204,700 $

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NOTE 7 LONG-TERM LIABILITIES
Changes in long-term liabilities for the City for the year June 30, 2021, are as follows:

Due in
Balance at Balance at Due Within More Than
Governmental Activities July 1, 2020 Additions Deletions June 30, 2021 One Year One Year Direct Borrowings:

Capitalized Lease 3,587,412$ 2,682,300$ (600,980)$ 5,668,732$ 699,522$ 4,969,210$ Obligations (Note 8)
HUD Section 108
Loans Payable 1,526,000 - (479,000) 1,047,000 508,000 539,000 Total Direct Borrowings 5,113,412 2,682,300 (1,079,980) 6,715,732 1,207,522 5,508,210 Other Debt:
2004 Taxable Pension
Obligation Bonds 12,200,000 - (430,000) 11,770,000 425,000 11,345,000 2021 Taxable Pension
Obligation Bonds - 100,892,026 100,892,026 2,969,804 97,922,222 Total Other Debt 12,200,000 100,892,026 (430,000) 112,662,026 3,394,804 109,267,222 Other Long-term Liabilities:

Compensated Absences 5,057,351 475,724 (505,735) 5,027,340 502,734 4,524,606 Insurance Assessments
Payable (Note 12) 1,144,600 - (163,514) 981,086 163,514 817,572 Claims and Judgments (Note 12) 18,372,816 2,229,585 (653,747) 19,948,654 3,264,457 16,684,197 Total Other
Long-term Liabilities 24,574,767 2,705,309 (1,322,996) 25,957,080 3,930,705 22,026,375 Total Governmental
Activities 41,888,179$ 106,279,635$ (2,832,976)$ 145,334,838$ 8,533,031$ 136,801,807$

Due in
Balance at Balance at Due Within More Than
Business-Type Activities July 1, 2020 Additions Deletions June 30, 2021 One Year One Year Direct Borrowings:

Capitalized Lease
Obligations (Note 8) 8,466,300 $ - $ (551,053)$ 7,915,247 $ 605,214 $ 7,310,033 $ Total Direct Borrowings 8,466,300 - (551,053) 7,915,247 605,214 7,310,033 Other Debt:
2021 Taxable Pension
Obligation Bonds - 5,442,974 - 5,442,974 160,196 5,282,778 Total Other Debt - 5,442,974 - 5,442,974 160,196 5,282,778 Other Long-term Liabilities:

Compensated Absences 705,514 101,566 (70,551) 736,529 73,653 662,876 Total Other
Long-term Liabilities 705,514 101,566 (70,551) 736,529 73,653 662,876 Total Business-Type
Activities 9,171,814$ 5,544,540$ (621,604)$ 14,094,750$ 839,063$ 13,255,687$

Internal service funds predominately serve the governmental funds. Accordingly, long-term liabilities are included as part of the above totals for governmental activities. At June 30, 2021, $118,108 in compensated absences, $19,948,654 in claims and judgments, and $981,086 in insurance assessments payable, all related to internal service funds, are included as part of the totals of long-term debt for governmental activities.

Typically, the General Fund has been used to liquidate the liability for compensated absences, net pension liabilities and net OPEB li ability for the governmental activities. The General Liability and Workers’ Compensation Internal Service Funds have been used to liquidate the liabilities for claims and judgements. The General Liability Internal Service Fund is used to liquidate the liabilities for the insurance assessments.

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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
HUD Section 108 Loan Program
In August 2002, the City participated in the U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program and received note proceeds of $6,500,000. The City uses the proceeds for the development of the Market Place project.

The annual debt service payments are funded through the City’s Community Development Block Grant funds. On May 28, 2015, the City participated in the HUD refinancing program and refinanced the Section 108 Loan for a fixed rate note (Series 2015 A Certificates).

Interest payments are made semiannually on August 1 and February 1. Principal payments are made on August 1 of each year and continue until August 2022. The outstanding balance of the HUD Section 108 Loan was $1,047,000 at June 30, 2021.

The annual debt service requirements on the HUD Section 108 Loan are as follows:

Year Ending June 30, Principal Interest Total
2022 508,000$ 19,174$ 527,174$
2023 539,000 6,603 545,603
Total 1,047,000$ 25,777$ 1,072,777$

2004 Taxable Pension Obligation Bonds
On June 29, 2004, the City pursuant to an Agreement with the California Statewide Communities Development Authority, issued $17,405,000 in Taxable Pension Obligation Bonds, 2004 Series A-1. These Bonds were issued to fund the unfunded liabilities of the City’s Safety Plan to the California Public Employees’ Retirement System (CALPERS). The City is contractually obligated to appropriate and make payments to CALPERS arising as a result of retirement benefits accruing to members of CALPERS. The City’s obligation includes, among others, the requirement to amortize the unfunded accrued actuarial liability over a multi-year period. On June 29, 2004, the City contributed $17,012,841 of the bond proceeds to CALPERS to fund a portion of the unfunded liability for the Safety Plan that provides retirement benefits to the City’s sworn Police Officers and Firefighters.

Bond interest is payable semi-annually on June 1 and December 1 commencing December 1, 2004. The rate of interest varies from 4.510% to 6.076% per annum. Principal is payable in annual installments ranging from $25,000 to $1,350,000 commencing on June 1, 2009 and ending on June 1, 2034. On or before August 1st of each year, the City is required to deposit with the trustee the amount equal to the next year’s debt service payment in lieu of a reserve requirement.

Optional Redemption: The bonds maturing on or before June 1, 2016 were not subject to optional redemption. The bonds maturing on June 1, 2024 and on June 1, 2034 are subject to optional redemption prior to maturity at the option of the Authority, in whole or in part on any date at a redemption price equal to the greater of (1) 100% of principal to be redeemed or (2) present value of the remaining debt service discounted at Treasury Rate plus 10.0 basis points for the 2024 Term Bonds or plus 12.5 basis points for the 2034 Term Bonds.

Bonds will be selected for redemption on a pro rata basis for both the optional and mandatory sinking fund redemption.

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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
2004 Taxable Pension Obligation Bonds (Continued)
The outstanding balance of the 2004 Taxable Pension Obligation Bonds was $11,770,000 at June 30, 2021.

The annual debt service requirements on the 2004 Taxable Pension Obligation Bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 425,000$ 712,877$ 1,137,877$
2023 425,000 687,819 1,112,819
2024 410,000 662,761 1,072,761
2025 795,000 638,588 1,433,588
2026 845,000 590,283 1,435,283
2027 - 2031 5,045,000 2,117,182 7,162,182 2032 - 2034 3,825,000 473,928 4,298,928 Total 11,770,000$ 5,883,438$ 17,653,438$

2021 Taxable Pension Obligation Bonds
On February 16, 2021, the City issued $106,335,000 in Taxable Pension Obligation Bonds, 2021 Series A. These Bonds were issued to fund the unfunded liabilities of the City’s Miscellaneous and Safety Plans to the California Public Employees’ Retirement System (CALPERS). The City is contractually obligated to appropriate and make payments to CALPERS arising as a result of retirement benefits accruing to members of CALPERS. The City’s obligation includes, among others, the requirement to amortize the unfunded accrued actuarial liability over a multi-year period. On February 16, 2021, the City contributed $105,545,217 ($41,146,631 to the Miscellaneous Plan and $64,398,586 to the Safety Plan) of the bond proceeds to CALPERS to fund a portion of the unfunded liability for the Miscellaneous and Safety Plans that provides retirement benefits to the City’s eligible employees. This transaction and future debt service requirements on the bonds are being shared between the City’s general fund and enterprise funds.

Bond interest is payable semi-annually on June 1 and December 1 commencing December 1, 2021. The rate of interest varies from 0.213% to 3.021% per annum. Principal is payable in annual installments ranging from $3,130,000 to $7,135,000 commencing on June 1, 2022 and ending on June 1, 2043. On or before August 1st of each year, the City is required to deposit with the trustee the amount sufficient to pay debt service on the bonds, the 2004 Bonds and any additional bonds and refunding obligations as may be issued on a parity basis in accordance with the Trust Agreement.

Optional Redemption: The bonds maturing on or before June 1, 2032 may be redeemed at the option of the City from any source of funds on any date on or after June 1, 2031 in whole or in part at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date of redemption, without premium. The bonds are also subject to redemption prior to June 1, 2031 at the option of the City, in whole or in part, at any time, at a redemption price equal to the greater of: (1) 100% of principal amount to be redeemed or (2) the sum, calculated by the City, of the present value of the remaining scheduled payments of principal and interest on the bonds to be redeemed discounted to the date of redemption on a semiannual basis at a Treasury Rate plus 15 basis points, plus accrued and unpaid interest on the bonds being redeemed to the date fixed for redemption.

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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
2021 Taxable Pension Obligation Bonds (Continued)
The outstanding balance of the 2021 Taxable Pension Obligation Bonds was $106,335,000 at June 30, 2021.

The annual debt service requirements on the 2021 Taxable Pension Obligation Bonds are as follows:

Year Ending June 30, Principal Interest Total
2022 3,130,000$ 3,069,348$ 6,199,348$
2023 3,855,000 2,369,602 6,224,602
2024 3,910,000 2,355,608 6,265,608
2025 3,575,000 2,331,132 5,906,132
2026 3,605,000 2,299,422 5,904,422
2027 - 2031 18,835,000 10,704,417 29,539,417 2032 - 2036 23,690,000 8,723,996 32,413,996 2037 - 2041 31,675,000 5,051,716 36,726,716 2042 - 2043 14,060,000 640,301 14,700,301 Total 106,335,000$ 37,545,542$ 143,880,542$

Changes in long-term debt for the Successor Agency for the year ended June 30, 2021, are as follows:

Due in
Balance at Balance at Due Within More Than
Successor Agency July 1, 2020 Additions Deletions June 30, 2021 One Year One Year Other Debt:

Bonds Payable:
2013A Tax Refunding Bonds -
Atlantic-Garvey Project
Redevelopment Project 8,205,000 $ - $ (1,065,000)$ 7,140,000 $ 1,115,000 $ 6,025,000 $ 2013B Tax Refunding Bonds -
Merged Redevelopment
Project 4,735,000 - (435,000) 4,300,000 460,000 3,840,000 12,940,000 - (1,500,000) 11,440,000 1,575,000 9,865,000 Add Deferred Amounts:

Bond Premium 627,608 - (93,417) 534,191 - 534,191 Total Bonds Payable 13,567,608 - (1,593,417) 11,974,191 1,575,000 10,399,191 Advances from the
City of Monterey Park (Note 5) 1,308,334 - (137,341) 1,170,993 - 1,170,993 Total Other Debt 14,875,942 - (1,730,758) 13,145,184 1,575,000 11,570,184 Direct Borrowings:

Tax Increment Deferred Loan -
Atlantic/Garvey Project 12,913,842 903,969 - 13,817,811 - 13,817,811 Tax Increment Deferred Loan -
Merged Project 59,407,110 4,025,461 (420,813) 63,011,758 468,189 62,543,569 Low/Mod Housing
Deferred Loans 1,186,222 - - 1,186,222 - 1,186,222 Total Direct Borrowings 73,507,174 4,929,430 (420,813) 78,015,791 468,189 77,547,602 Total Successor Agency 88,383,116$ 4,929,430 $ (2,151,571) $ 91,160,975 $ 2,043,189 $ 89,117,786 $

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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds
Tax Allocation Refunding Bond, Series 2013A (Atlantic-Garvey Redevelopment Project No. 1)
On December 1, 2013, the County of Los Angeles Redevelopment Refunding Authority assisted the Successor Agency to issue the $13,835,000 Tax Allocation Refunding Bond, Series 2013A, for the Atlantic-Garvey Redevelopment Project No. 1. These Bonds were issued to redeem the outstanding 2002 Tax Allocation Revenue Bonds. The Bonds are secured by a pledge of the tax revenues from the Project area with interest rates ranging from 3.0% to 5.0%. Interest payments are payable semiannually on September 1 and March 1. Principal payments are made on September 1 of each year and continue until the year 2026.

Optional Redemption: The Bonds maturing on or before September 1, 2024, are not subject to optional redemption prior to maturity. The Bonds maturing on and after September 1, 2024, are subject to optional redemption on any date on and after September 1, 2023, in integral multiples of $5,000, from any available source of funds, at the times, at a redemption price equal to the principal amount of the Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

The Bonds are secured by a first and prior lien on tax increment revenues, excluding any portion of revenues that are required to be deposited to the Rebate Fund. Annual principal and interest payments on the Bonds are expected to require less than 90% of net revenues. The amount of principal and interest outstanding at June 30, 2021, totaled $8,105,821. Interest paid for the current year is $354,506, and the net tax increment revenue is collected and withheld by the County of Los Angeles due to the dissolution of the former Redevelopment Agency.

The annual debt service requirements on the Tax Allocation Refunding Bond, Series 2013A (Atlantic-Garvey Redevelopment Project No. 1) are as follows:

Year Ending June 30, Principal Interest Total
2022 1,115,000$ 300,006$ 1,415,006$
2023 1,175,000 242,756 1,417,756
2024 1,165,000 184,256 1,349,256
2025 1,220,000 130,731 1,350,731
2026 1,210,000 80,619 1,290,619
2027 1,255,000 27,453 1,282,453
Total 7,140,000$ 965,821$ 8,105,821$

Tax Allocation Refunding Bond, Series 2013B (Merged Redevelopment Project Area) On December 1, 2013, the County of Los Angeles Redevelopment Refunding Authority assisted the Successor Agency to issue this $7,080,000 Tax Allocation Refunding Bond, Series 2013B, for the Merged Redevelopment Project No. 1. These Bonds were issued to redeem the outstanding 1998 Tax Allocation Revenue Bonds. The Bonds are secured by a pledge of the tax revenues from the Project area with interest rates ranging from

3.0% to 5.0%. Interest payments are payable semiannually on September 1 and March

1. Principal payments are made on September 1 of each year and continue until the year 2028.

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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Tax Allocation Refunding Bond, Series 2013B (Merged Redevelopment Project Area) (Continued)
Optional Redemption: The Bonds maturing on or before September 1, 2024, are not subject to optional redemption prior to maturity. The Bonds maturing on and after September 1, 2024, are subject to optional redemption on any date on and after September 1, 2023, in integral multiples of $5,000, from any available source of funds, at the times, at a redemption price equal to the principal amount of the Bonds to be redeemed, together with accrued interest thereon to the date fixed for redemption, without premium.

The Bonds are secured by a first and prior lien on tax increment revenues, excluding any portion of revenues that are required to be deposited to the Rebate Fund. Annual principal and interest payments on the bonds are expected to require less than 90% of net revenues. The amount of principal and interest outstanding at June 30, 2021, totaled $5,150,884. Interest paid for the current year is $212,956 and the net tax increment revenue is collected and withheld by the County of Los Angeles due to the dissolution of the former Redevelopment Agency.

The annual debt services requirement on the Tax Allocation Refunding Bond, Series 2013B (Merged Redevelopment Project Area) are as follows:

Year Ending June 30, Principal Interest Total
2022 460,000$ 190,581$ 650,581$
2023 480,000 167,081 647,081
2024 505,000 142,456 647,456
2025 530,000 119,231 649,231
2026 545,000 97,050 642,050
2027 - 2029 1,780,000 134,485 1,914,485 Total 4,300,000$ 850,884$ 5,150,884$

Tax Increment Deferred Loan (Atlantic/Garvey Project)
On August 20, 1987, the former Redevelopment Agency entered into an agreement for reimbursement of tax increment funds with the County of Los Angeles (the County). In the Agreement, the County agreed to loan its portion of the tax increment revenues received from the amended area (88 Annex) to the former Redevelopment Agency at a 7% compound interest rate, beginning fiscal year 1989-90. The percentage distribution from the basic tax levy for the 88 Annex areas for the County and the former Redevelopment Agency is 43.7% and 56.3% respectively. The former Redevelopment Agency will commence repayment of this loan annually beginning with the fiscal year in which the former Redevelopment Agency’s share of tax increment revenues (excluding Housing Fund contributions) from the 88 Annex areas exceeds $800,000.

The outstanding balance of the Tax Increment Deferred L oan (Atlantic/Garvey Project) was $13,817,811 at June 30, 2021.

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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)
Tax Allocation Bonds (Continued)
Tax Increment Deferred Loan (Merged Project)
The former Redevelopment Agency and the County Taxing Entities (the County of Los Angeles, the Los Angeles County Flood Control District, and the Los Angeles County Office of Education) entered into four agreements for reimbursement of the tax increment deferred amounts. In the Agreements, the County Taxing Entities agreed to loan their portions of the tax increment revenues received from the Southeast Project area, Freeway `99 Annex area, Central Commercial Project area, and Merged Monterey Pass Road area to the former Redevelopment Agency at specified interest rates ranging from 0% to 7%. The percentage distribution fr om the basic tax levy and the repayment schedule of the deferred loans are also based on a specified formula for each taxing entity.

The outstanding balance of the Tax Increment Deferred Loan (Merged Project) was $63,011,758 at June 30, 2021.

Low/Mod Housing Deferred Loans
State law required former redevelopment agencies to set aside 20% of their tax increment revenues for low/mod housing. In 1997, the former Redevelopment Agency approved a plan to set aside future tax increment revenue in addition to the regular 20% set aside requirements. On February 1, 2012, the commitment was transferred to the Successor Agency due to the dissolution of the former Redevelopment Agency and was approved by the DOF as a payable to the City’s Special Revenue Housing Fund.

A summary of the repayment plan is presented below:

For the Years Ending June 30, Amount
2024 - 2029 500,000 $
2030 - 2034 450,000
2035 - 2039 236,222
1,186,222$

NOTE 8 CAPITALIZED LEASE OBLIGATIONS
The City has entered into lease agreements with Municipal Leasing Associates, San Gabriel Valley Municipal Water District and California Infrastructure and Economic Development Bank, to finance water system energy retrofit programs, water volatile organic chemicals treatment and La Loma and Highland Reservoirs project, Police Computer Aided Dispatch and Records Management System (CAD/RMS), and has recorded the transactions in the Governmental Funds and Water Utility Fund. These leases are classified as capital leases for accounting purposes and therefore have been recorded at the present value of the future minimum lease payments at the date of inception of the leases.

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NOTE 8 CAPITALIZED LEASE OBLIGATIONS (CONTINUED)
On September 23, 2014, the City (Lessee) and the Siemens Public, Inc. (Lessor) entered into a lease-purchase agreement for an amount of $10,511,901. The City will use the monies for energy efficiency improvements throughout city parks, facilities and infrastructure. The term of the agreement is 15 years, commencing on September 23, 2014 through June 23, 2030, at an interest rate of 2.80%. Lease payments are due quarterly in amounts ranging from $140,217 to $325,545 over the term of the agreement. The transactions are shared by the General Fund and the Water Utility Fund.

On March 16, 2021, the City (Lessee) and Motorola Solutions, Inc. (Lessor) entered into a lease-purchase agreement for police radios, dispatch consoles and station equipment in the amount of $2,682,300. The term of the agreement is ten years through April 2, 2031, at an interest rate of 2.58%. Annual lease payments of $307,745 are due April 1 st of each year
commencing in 2022.

The assets acquired through capital leases are included in the City’s capital assets (Note 6) and are as follows:

Governmental Business-Type
Activities Activities Total
Assets:

Machinery and Equipment 8,567,865 $ - $ 8,567,865$ Improvements - 22,969,813 22,969,813 Subtotal 8,567,865 22,969,813 31,537,678 Less Accumulated Depreciation (3,473,041) (9,217,994) (12,691,035) Total 5,094,824 $ 13,751,819 $ 18,846,643 $

Future minimum lease payments under these capital leases are as follows:

Governmental Business-Type
Activities Activities Total
Fiscal Year:
2022 855,266 $ 831,237 $ 1,686,503 $
2023 862,331 871,209 1,733,540
2024 870,021 914,719 1,784,740
2025 878,170 960,827 1,838,997
2026 674,639 998,150 1,672,789
2027 - 2031 2,245,596 4,553,516 6,799,112 Subtotal 6,386,023 9,129,658 15,515,681 Less: Amount Representing Interest (717,291) (1,214,411) (1,931,702) Total 5,668,732 $ 7,915,247 $ 13,583,979 $

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CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(75)

NOTE 9 DUE TO OTHER GOVERNMENTAL AGENCIES
In the Special Revenue Grants Fund, an amount equal to the total outstanding balance of the identified loans receivable for the CDBG Residential Rehabilitation Program in the amount of $48,015, State Earthquake Rehabilitation Assistance (SERA) Program in the amount of $4,322, the Pacific Housing Corporation loan in the amount of $256,705, and the Pacific Bridge Loan in the amount of $427,425, described in Note 3 at June 30, 2021, have been recorded as Due to Other Governmental Agencies. As these notes are repaid, the repayment proceeds must be returned to the applicable government agency.

Description Amount
Due to Other Governmental Agencies:

CDBG Residential Rehabilitation Program 48,015$
SERA Program 4,322
Pacific Housing Corporation Loan 256,705
Pacific Bridge Loan 427,425
Total 736,467 $

NOTE 10 PENSION PLANS
A. Defined Benefit Pension Plans
a. California Public Employees’ Retirement System Plan
General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (C alPERS). 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 provisions, assumptions and membership information that can be found on the CalPERS website.

Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A classic CalPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full-time equivalent monthly pay.

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CITY OF MONTEREY PARK

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

(76)

NOTE 10 PENSION PLANS (CONTINUED)
A. Defined Benefit Pension Plans (Continued)
a. California Public Employees’ Retirement System Plan (Continued) General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Retirement benefits for classic miscellaneous employees are calculated as 2% to

2.7% of the average final 12 months compensation. Retirement benefits for PEPRA miscellaneous employees are calculated as 2% of the average final 36 months compensation. Retirement benefits for clas sic safety employees are calculated as 3% of the average final 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2.7% of the average final 36 months compensation.

Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to

1.8% of final compensation, multiplied by service.

Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50% of final compensation.

An employee’s beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee’s survivor who is eligible for any other pre- retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee’s accumulated contributions, where interest is currently credited at 7.15% per year, plus a lump sum in the amount of one month’s salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month’s salary is defined as the member’s average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $5,000 will be made to the retiree’s designated survivor(s), or to the retiree’s estate.

Benefit terms provide for annual cost-o f-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2%.

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Monterey Park City CouncilApril 6, 2022

Monterey Park City Council
April 6, 2022