Agenda packet — Pico Rivera City Council, February 13, 2024 (part 5 of 6)

EXHIBIT B

APPROVED FEE SCHEDULE
(SCHEDULE OF HOURLY LABOR RATES AND REIMBURSABLE)
Page |36
On-Call Plan Checking Services
City of Pico Rivera
SECTION H| SCHEDULE OF HOURLY RATES
SECTION H | SCHEDULE OF HOURLY RATE
Professional Services Agreement

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EXHIBIT C

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

1. This Agreement calls for services that, in whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”). Further, Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. Therefore, as to those Services that are “public works”, Consultant shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein.

2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above.

3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subconsultant that is not registered with DIR pursuant to Section 1725.5. Consultant and subconsultants shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If the Consultant or any subconsultant ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City.

4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations.

5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement.

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subconsultant.

Professional Services Agreement

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7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.

8. Consultant shall comply with and be bound by the provisions of Labor Code seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subconsultants shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement.

9. The Consultant shall not perform Work with any Subconsultant that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of consultants from public works. The Consultant and Subconsultants shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of consultants from public works. If the Consultant or any subconsultant becomes debarred or suspended during the duration of the project, the Consultant shall immediately notify City.

10. Consultant acknowledges that eight hours labor constitutes a legal day’s work. Consultant shall comply with and be bound by Labor Code Section 1810.

Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by the Consultant or by any subconsultant for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the Professional Services Agreement

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provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

12. For every subconsultant who will perform work on the project, Consultant shall be responsible for such subconsultant’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Consultant shall include in the written contract between it and each subconsultant a copy of those statutory provisions and a requirement that each subconsultant shall comply with those statutory provisions. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subconsultant’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subconsultant and upon becoming aware of the failure of the subconsultant to pay his or her workers the specified prevailing rate of wages.

Consultant shall diligently take corrective action to halt or rectify any failure.

13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend (at Consultant’s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent consultants serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including Consultant, its subconsultants, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement.

To: Mayor and City Council
From: City Manager
Meeting Date: February 13, 2024
Subject: BUDGET CALENDAR – YEAR TWO OF FISCAL YEAR
2023-25 BIENNIAL BUDGET FOR FISCAL YEAR 2024-25
Recommendation:

1. Receive and file the fiscal year (FY) 2024-25 Budget Development Calendar.

Fiscal Impact:

There is no fiscal impact to the General Fund associated with this recommendation.

Enclosure 1 describes the process, purpose, and dates for FY 2024-25 (Year Two) budget development.

Background:

On June 27, 2023, the City Council adopted a balanced Biennial Operating Budget for FY 2023-24 and FY 2024-25. The City uses a two-year budget process, incorporating two (2) fiscal years into one (1) budget document. Each fiscal year runs from July 1st through June 30th. The first year, FY 2023-24 (Year One), was adopted by resolution on June 27, 2023. The second year, FY 2024-25 (Year Two), was approved simultaneously, with the final appropriation set to occur on or before June 30, 2024.

The City is now in the first year of this two-year budget. This budget calendar is the planning document for appropriating the second year for FY 2024-25 Budget (Enclosure 1).

Discussion:

The proposed dates are intended to meet the following Municipal Code provision:

2.04.090 Legislative and executive action - As a chief administrative officer and advisor of the City Council, the City Manager shall at all times advise the City Council as to all legislative, executive and administrative duties and responsibilities of the City Council and shall recommend to the City Council such measures, ordinances or procedures as he or she shall deem necessary or expedient to carry out the purposes of the municipal government. In this regard, the City Manager shall:

A. Prepare and submit to the City Council the annual budget and administer it 13 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 BUDGET CALENDAR – YEAR TWO OF FISCAL YEAR 2023-25 BIENNIAL BUDGET FOR FISCAL YEAR 2024-25

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after adoption.

The FY 2023-25 Adopted Biennial Budget includes the Budget Preparation Calendar and Adopted Budget Modification Process for FY 2023-24 Budget (Year One) and FY 2024-25 (Year Two) with the anticipation of updating the Budget Calendar for Year Two as part of the biennial budgetary cycle process. The biennial budget cycle strategy has several benefits, such as:
• Allows for multi-year strategic planning and assists with forecasting for multiple funds.
• Allows for improved efficiency in the process.
o Year Two is intended to involve only minor edits, not an entire recreation of the budget document.

The budget calendar includes significant dates and key budget deadlines to assist departments in the mid-biennial review and adoption of FY 2024-25 Budget.

Conclusion:

Staff recommends that the City Council receive and file the enclosed Budget Preparation Calendar and Adopted Budget Modification Process for FY 2024-25 (Year Two) of the FY 2023-25 Biennial Adopted Budget.

Steve Carmona
SC:AG:DS:JM:ep
Enclosures: 1) Budget Preparation Calendar and Adopted Budget Modification Process, FY 2024-25 Budget (Year Two)
Updated 2-7-2024
Adjustments to the Adopted Budget

APRIL MAY
During the fiscal year, certain situations arise that may cause changes in a Department's spending priority that necessitates appropriations be moved to a different Division or Object Code. The Budget Adoption Resolution No. 7289 included in the adopted budget book in the Appendix Section -- outlines the specific process for making budget adjustments. Department Directors are authorized to move appropriations within each program/division and within the same fund for their respective departments, so long as appropriations are not being increased. The City Manager may transfer operating budget appropriations within the same fund between departments, so long as total appropriations are not being increased. Any changes to total appropriations and any changes to Capital Improvement Program appropriations must be approved by a majority of the City Council.

FY 2023-24 Third-Quarter review presented to City
Council
Final Department review of Year Two Budget
(FY 2024-25)
FY 2024-25 User Fee Schedule update presented
to City Council
Year Two Budget (FY 2024-25) and Year Two of
Five-Year Capital Improvement Program (2023-28)
presented to City Council for review and adoption
Landscaping and Lighting Assessment District No.
1 and Paramount/Mines Assessment District -
Annual Renewal Consideration presented to City
Council
Public Hearing: Landscaping and Lighting
Assessment District No. 1 and Paramount/Mines
Assessment District presented to City Council for
approval
JUNE
Five-Year Forecast Update to City Council
Year Two review of FY 2023-28 Five-Year Capital
Improvement Program budget and projects
Departments to review FY 2024-25 User Fee
Schedule
FY 2023-24 Mid-year review of revenue and
expenditures presented to City Council
Year Two review of FY 2023-25 Biennial Budget
adjustments
FY 2022-23 Annual Comprehensive Financial
Report (ACFR) presented to City Council
City of Pico Rivera
Budget Preparation Calendar and
Adopted Budget Modification Process
FY 2024-25 Budget

FEBRUARY MARCH
Enclosure 1
13a
A Regular Meeting of the Water Authority was held in the Council Chamber, 6615 Passons Boulevard, Pico Rivera, California.

Meeting was jointly held with the City Council and Water Authority. Items appear as listed on the combined agenda for the meeting of January 23, 2024.

Authority President Lara called the meeting to order at 6:01 p.m.

PRESENT: Camacho, Garcia, Lutz, Sanchez, Lara
ABSENT: None
PUBLIC COMMENTS: None
CONSENT CALENDAR ITEMS:

Water Authority:

14. Minutes:
• Approved the Water Authority regular meeting of October 24, 2023

15. Approve Amendment No. 1 to Professional Services Agreement No. 23-71 with Tetra Tech, Inc. for the Water Main Replacement Project, CIP No. 50078. (500)

1. Approved Amendment No. 1 to Agreement No. 23-71, in a form approved by the General Counsel and authorized the Executive Director to execute Amendment No. 1 for a not-to-exceed amount of $6,100; and

2. Authorized the Executive Director to process change orders, as needed, in an amount not-to-exceed $18,000 (approximately 10% of the total contract amount) for design and technical construction-support contingency.

Agreement No. 23-71-1
Motion by Vice President Garcia, seconded by Commissioner Lutz to approve Consent Calendar Item No. 14 and 15. Motion carries by the following roll call vote:

AYES: Camacho, Garcia, Lutz, Sanchez, Lara
NOES: None
CONSENT CALENDAR ITEMS PULLED FOR FURTHER DISCUSSION: None REGULAR AGENDA: None
ADJOURNMENT:

Tuesday, January 23, 2024
14 1-23-24 Water Minutes

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President Lara adjourned the Water Authority meeting at 8:14 p.m. in memory of El Rancho High School Alumni Guy Pico and Efrain Vasquez, wife of VFW 341 Commander, Inez Elias and former Pico Boys President Lee Shipman. There being no objection, it was so ordered.

AYES: Camacho, Garcia, Lutz, Sanchez, Lara
NOES: None
________________________________
Andrew C. Lara, President
ATTEST:
________________________________
Cynthia Ayala, CMC, Authority Secretary
I hereby certify that the foregoing is a true and correct report of the proceedings of the Water Authority regular meeting dated January 23, 2024, and approved by the Water Authority on February 13, 2024.
_______________________________
Cynthia Ayala, CMC, Authority Secretary
To: President and Commissioners
From: Executive Director
Meeting Date: February 13, 2024
Subject: AWARD A PROFESSIONAL SERVICES AGREEMENT TO
UNITED WATER WORKS INC. FOR GENERAL WATER

INVENTORY SUPPLIES
Recommendation:

1. Award a Professional Services Agreement, in a form approved by the General Counsel, to United Water Works Inc., to provide the purchase and acquisition of general water inventory supplies for an annual amount of $250,000 and a not-toexceed $500,000 for a two (2) year term; and

2. Authorize the Public Works Director to process change orders in an amount notto-exceed 10% of the total agreement amount, up to $50,000 for emergency unforeseen contingencies.

Fiscal Impact:

The fiscal year (FY) 2023-24 Adopted Budget includes a combined $250,000 for the purchase of Water maintenance supplies within Account No. 550.40.4920-54100 (Special Departmental Expenses) and Account No. 550.40.4920-53315 (Plant Maintenance and Repair). No additional appropriations are necessary at this time.

Discussion:

The Pico Rivera Water Authority (PRWA) oversees the daily operations of more than 90 miles of the City’s water system pipeline, with 10 active wells, 10 pump stations, nine (9) booster pumps, three (3) reservoirs, and approximately 875 fire hydrants. The PRWA is also responsible for the distribution and treatment of water to its customers.

City staff perform repairs and maintenance on the distribution and treatment of the water system by procuring necessary materials. Due to fluctuations in material costs and availability, the City has had increased difficulty procuring necessary equipment and materials for daily operations and repairs.
15 PICO RIVERA WATER AUTHORITY AGENDA REPORT – MEETING OF FEBRUARY 13, 2024

AWARD A PROFESSIONAL SERVICES AGREEMENT TO UNITED WATER WORKS INC. FOR GENERAL WATER INVENTORY SUPPLIES

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On November 8, 2023, the Request for Bids (RFB) for inventory supplies for the PRWA was published on Planet Bids through the City’s website portal. Five (5) bids were received through Planet Bids on November 29, 2023.

The following table summarizes the bids received:

No. Vendor Total Bid
1 United Water Works $245,172.45
2 S&J Supply Co. $251,988.72
3 Ferguson Waterworks $261,450.18
4 OC Winwater $262,943.04
5 Western Water Works Supply Co. $267,968.90
The top vendor, United Water Works, has previously supplied the staff with material and has agreed to honor their pricing for two (2) years based on their submitted Bid Proposal Form.

Conclusion:

Staff recommends awarding a Professional Services Agreement to United Water Works Inc. to provide the purchase and acquisition of general water inventory supplies for an annual amount of $250,000 and a not-to-exceed amount of $500,000 for a two (2) year term.

Steve Carmona
SC:NN:AR:ML:ll
Enclosures: 1) Professional Services Agreement
2) Request for Bids
AGREEMENT NO. _______

PROFESSIONAL SERVICES AGREEMENT

BETWEEN PICO RIVERA WATER AUTHORITY AND
UNITED WATER WORKS INC.

1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the Pico Rivera Water Authority, a division of the City of Pico Rivera (“PRWA”) and United Water Works Inc., (“Consultant”). PRWA and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as “Parties.”

2. RECITALS

2.1 PRWA has determined that it requires professional services from a consultant to provide the purchase and acquisition of general water inventory supplies.

2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

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

3. DEFINITIONS

3.1 “Scope of Services”: Such professional services as are set forth in the Consultant’s November 29, 2023 proposal to PRWA attached hereto as Exhibit “A” and incorporated herein by this reference.

3.2 “Approved Fee Schedule”: Such compensation rates as are set forth in the Consultant’s INSERT PROPOSAL DATE proposal to PRWA attached hereto as Exhibit “B.”

3.3 “Commencement Date”: February 13, 2024

3.4 “Expiration Date”: February 12, 2026

4. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall expire at 11:59 p.m. on the Expiration Date unless extended by written agreement of the Parties or terminated in accordance with Section 22 below.

Enclosure 1
15a
Professional Services Agreement
UNITED WATER WORKS INC.

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5. CONSULTANT’S SERVICES

5.1 Consultant shall perform the services identified in the Scope of Services.

PRWA shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the sum of Five-Hundred Thousand Dollars ($500,000) unless specifically approved in advance, in writing, by PRWA.

5.2 Consultant shall perform all work to the highest professional standards of Consultant’s profession and in a manner reasonably satisfactory to PRWA.

6. COMPENSATION

6.1 PRWA agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept in full satisfaction for such services, payment in accordance with the Approved Fee Schedule.

6.2 Consultant shall submit to PRWA an invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within ten (10) business days of receipt of each invoice, PRWA shall notify Consultant in writing of any disputed amounts included on the invoice. Within thirty (30) calendar days of receipt of each invoice, PRWA shall pay all undisputed amounts included on the invoice. PRWA shall not withhold applicable taxes or other authorized deductions from payments made to Consultant.

6.3 Payments for any services requested in writing by PRWA and not included in the Scope of Services shall be made to Consultant by PRWA on a time-and-materials basis using Consultant’s standard fee schedule. Fees for such additional services shall be paid within sixty (60) days of the date Consultant issues an invoice to PRWA for such services.

7. BUSINESS LICENSE
Consultant shall obtain a City of Pico Rivera business license prior to commencing performance under this Agreement.

8. COMPLIANCE WITH LAWS
Consultant shall keep informed of State, Federal and Local laws, ordinances, codes and regulations that in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. The Consultant shall at all Professional Services Agreement
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times comply with such laws, ordinances, codes and regulations. Without limiting the generality of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified and registered to do business in the State of California pursuant to sections 2105 and 17708.02 of the California Corporations Code. The PRWA, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.

9. CONFLICT OF INTEREST
Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both: (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute; and (ii) PRWA has not consented in writing prior to Consultant’s performance of such work.

10. PERSONNEL
Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but PRWA reserves the right, for good cause, to require Consultant to exclude any employee from performing services on PRWA’s premises.

INSERT NAME AND TITLE OF CONSULTANT’S PROJECT ADMINISTRATOR shall be Consultant’s project administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement. No change shall be made in Consultant’s project administrator without PRWA’s prior written consent.

11. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material (“written products”) developed by Consultant in the performance of this Agreement shall be and remain the property of PRWA without restriction or limitation upon its use or dissemination by PRWA.

Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant. If any state, federal, or local law requires mandatory copyright protection for Consultant’s work product, PRWA shall comply with such laws to the extent feasible.

Professional Services Agreement
UNITED WATER WORKS INC.

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12. INDEPENDENT CONTRACTOR

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

12.2 The Parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship, joint-employer relationship, or any other relationship between Consultant or Consultant’s employees except as set forth in this Agreement.

12.3 PRWA shall have no direct or indirect control over Consultant’s employees or sub-consultants with respect to wages, hours, and working conditions. In addition, PRWA shall not deduct from the Compensation paid to Consultant any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to Consultant, Consultant’s employees or subconsultants. PRWA shall have no responsibility to provide Consultant, its employees or subconsultants with workers’ compensation insurance or any other insurance.

12.4 The Parties further acknowledges the following: (i) that Consultant shall provide the services outlined in the Scope of Services directly to PRWA; (ii) Consultant maintains a business location at the address listed under Section 20 that is separate and distinct from the PRWA; (iii) Consultant contracts with other businesses to provide the same or similar services and maintains a clientele without restriction from the PRWA; (iv) Consultant advertises and holds itself out to the public as available to provide the same or similar services; (v) unless otherwise specified in this Agreement, Consultant provides its own tools, vehicles, and equipment necessary for performing the Scope of Services; (vi) Consultant has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the PRWA’s business hours, Consultant may set its own hours and location of work.

13. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by PRWA. PRWA shall grant such consent if disclosure is legally required. Upon request, all PRWA data and Professional Services Agreement
UNITED WATER WORKS INC.

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any copies thereof shall be returned to PRWA upon the termination or expiration of this Agreement.

14. NON-LIABILITY OF PRWA OFFICIALS AND EMPLOYEES
No official or employee of the PRWA shall be personally liable to Consultant in the event of any default or breach by PRWA, or for any amount which may become due to Consultant.

15. INDEMNIFICATION

15.1 The Parties agree that PRWA, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to PRWA. Consultant acknowledges that PRWA would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect PRWA as set forth herein. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.2 To the full extent permitted by law, Consultant shall indemnify, hold harmless and defend PRWA, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subconsultants in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of PRWA’s choice and expert witness fees and consultant fees. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.3 PRWA shall have the right to offset against the amount of any compensation due Consultant under this Agreement any amount due PRWA from Consultant as a result of Consultant’s failure to pay PRWA promptly any indemnification arising under this Professional Services Agreement
UNITED WATER WORKS INC.

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Section 15 or related to Consultant’s failure to either: (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

15.4 The obligations of Consultant under this Section 15 will not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to PRWA, its officers, agents, employees and volunteers.

15.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 15 from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend PRWA, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subconsultants or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of PRWA’s choice and expert witness fees and consultant fees.

15.6 PRWA does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by PRWA, or the deposit with PRWA, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

15.7 PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the PRWA, Consultant shall indemnify, defend, and hold harmless PRWA for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of PRWA.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become Professional Services Agreement
UNITED WATER WORKS INC.

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entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by PRWA, including but not limited to eligibility to enroll in PERS as an employee of PRWA and entitlement to any contribution to be paid by PRWA for employer contribution and/or employee contributions for PERS benefits.

16. INSURANCE

16.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

16.1.1 Comprehensive general liability, and Umbrella or Excess Liability Insurance covering all operations by or on behalf of Consultant providing insurance for bodily injury liability and property damage liability for the following and including coverage for:

16.1.1.1 Premises, operations, and mobile equipment

16.1.1.2 Products and completed operations

16.1.1.3 Broad form property damage (including completed operations)

16.1.1.4 Explosion, collapse, and underground hazards

16.1.1.5 Personal Injury

16.1.1.6 Contractual liability
in the amount of One Million Dollars ($1,000,000) per occurrence combined single limit; Two Million Dollars ($2,000,000) aggregate for products/completed operation; Two Million Dollars ($2,000,000) general aggregate (General aggregate must apply separately to Consultant’s work under this Agreement.); and Five Million Dollars ($5,000,000) umbrella or excess liability.

16.1.2 Automobile Liability Insurance for owned, hired and non-owned vehicles utilized by Consultant, its employees or subconsultants, in the amount of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.

16.1.3 Worker’s Compensation Insurance as required by the laws of the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease.

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16.1.4 Professional Liability Insurance against errors and omissions in the performance of the work under this Agreement with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence of claim/ Two Million Dollars ($2,000,000) in the aggregate.

16.2 Consultant shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

16.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

16.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect PRWA may either: (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

16.5 At all times during the term of this Agreement, Consultant shall maintain on file with PRWA’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and, for the general liability and automobile liability policies, naming the PRWA as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with PRWA’s Risk Manager such certificate(s).

16.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall provide such proof to PRWA at least two weeks prior to the expiration of the coverages.

16.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming PRWA, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to PRWA. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

16.8 The general liability and automobile policies of insurance provided by Consultant shall be primary to any coverage available to PRWA. Any insurance or selfinsurance maintained by PRWA, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

16.9 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the PRWA.

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16.10 Any deductibles or self-insured retentions must be declared to and approved by the PRWA. At the option of PRWA, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to PRWA, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

16.11 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 15 of this Agreement.

16.12 If Consultant maintains broader coverage and/or higher limits than the minimums shown above, the PRWA requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the PRWA.

17. MUTUAL COOPERATION

17.1 PRWA shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available to PRWA for the proper performance of Consultant’s services under this Agreement.

17.2 In the event any claim or action is brought against PRWA relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that PRWA may require.

18. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. PRWA shall have the right to access and examine such records, without charge, during normal business hours. PRWA shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

19. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement. This includes, but shall not be limited to, encroachment permits and building and safety permits and inspections.

20.NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile, email, or overnight courier service during Consultant’s and PRWA’s regular business hours; or (ii) on the Professional Services Agreement
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third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the Parties may, from time to time, designate in writing).

If to PRWA: If to Consultant:

Steve Carmona, PRWA Manager
PRWA of Pico Rivera
PO Box 1016
6615 Passons Blvd.

Pico Rivera, California 90660-1016
Facsimile: (562) 801-4765

JERRY CANADA, OWNER
UNITED WATER WORKS INC.
1313 E. HUNTER AVE.

SANTA ANA, CA, 92705
With a courtesy copy to:

Arnold M. Alvarez-Glasman, PRWA
Attorney
13181 Crossroads Parkway North
Suite 400 - West Tower
PRWA of Industry, CA 91746
Facsimile: (562) 692-2244

21. SURVIVING COVENANTS
The Parties agree that the covenants contained in Sections 13, 15 and Paragraph

17.2 of Section 17, of this Agreement shall survive the expiration or termination of this Agreement.

22. TERMINATION

22.1. PRWA shall have the right to terminate this Agreement for any reason on five (5) calendar days’ written notice to Consultant. Consultant shall have the right to terminate this Agreement for any reason on sixty (60) calendar days’ written notice to PRWA. The effective date of termination shall be upon the date specified in the notice of termination. Consultant agrees that in the event of such termination, PRWA’s obligation to pay Consultant shall be limited to payment only for those services satisfactorily rendered, as solely determined by the PRWA, prior to the effective date of termination.

Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination. All PRWA data, documents, objects, materials or other tangible things shall be returned to PRWA upon the termination or expiration of this Agreement.

22.2 If PRWA terminates this Agreement due to no fault or failure of performance by Consultant, then Consultant shall be paid based on the work satisfactorily performed, as solely determined by the PRWA, at the time of termination. In no event shall Professional Services Agreement
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Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

23. ASSIGNMENT
Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without PRWA’s prior written consent, and any attempt to do so shall be void and of no effect. PRWA shall not be obligated or liable under this Agreement to any Party other than Consultant.

24. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

24.1 In the performance of this Agreement, Consultant shall not discriminate against any employee, subconsultant, or employment applicant because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation. Consultant will take affirmative action to ensure that subconsultants, employees, and employment applicants are treated without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

24.2 Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

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

25. WARRANTIES

25.1 Each Party has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement, or been provided with an opportunity to receive independent legal advice and has freely and voluntarily waived and relinquished the right to do so. Each Party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such Party’s failure to perform under this Agreement.

25.2 In executing this Agreement, each Party has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, Professional Services Agreement
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nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever.

25.3 It is agreed that each Party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either Party has the full right and authority to fully commit and bind such Party to the provisions of this Agreement.

26. CAPTIONS

26.1 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement.

26.2 Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

27. NON-WAIVER

27.1 The waiver by PRWA or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. In no event shall the making by PRWA of any payment to Consultant constitute or be construed as a waiver by PRWA of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by PRWA shall in no way impair or prejudice any right or remedy available to PRWA with regard to such breach or default. No term, covenant or condition of this Agreement shall be deemed to have been waived by PRWA or Consultant unless in writing.

27.2 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such Party of any of all of such other rights, powers or remedies.

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27.3 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in PRWA’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

28. COURT COSTS AND ATTORNEY FEES
In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the Party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants’ fees and expert witness fees, if any, and attorneys’ fees expended in such action. The venue for any litigation shall be Los Angeles County, California.

29. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

30. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California.

31. COUNTERPARTS
This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile or email transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the Party whose signature appears in the facsimile or email and shall be binding upon such Party in the same manner as though an originally signed copy had been delivered.

32. ENTIRE AGREEMENT
All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Professional Services Agreement
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Agreement between PRWA and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the Parties.

Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed by PRWA and Consultant.

TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. “PRWA” “CONSULTANT”
PICO RIVERA WATER AUTHORITY UNITED WATER WORKS INC.
______________________________ ___________________________________ Steve Carmona, Executive Director Jerry Canada, Owner
Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Cynthia Ayala, Authority Secretary Arnold M. Alvarez-Glasman, General Counsel Professional Services Agreement
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EXHIBIT A

SCOPE OF SERVICES
Professional Services Agreement
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EXHIBIT B

APPROVED FEE SCHEDULE

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EXHIBIT C

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to PRWA prior to the Effective Date of this Agreement. Consultant shall not perform work with any subconsultant that is not registered with DIR pursuant to Section 1725.5. Consultant and subconsultants shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If the Consultant or any subconsultant ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify PRWA.

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to PRWA, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subconsultant.

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8. Consultant shall comply with and be bound by the provisions of Labor Code seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide PRWA with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subconsultants shall submit to PRWA a verified statement of the journeyman and apprentice hours performed under this Agreement.

10. Consultant acknowledges that eight hours labor constitutes a legal day’s work. Consultant shall comply with and be bound by Labor Code Section 1810.

Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to PRWA, forfeit $25.00 for each worker employed in the performance of this Agreement by the Consultant or by any subconsultant for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ Professional Services Agreement
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compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

Consultant shall diligently take corrective action to halt or rectify any failure.

13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend (at Consultant’s expense with counsel reasonably acceptable to PRWA) PRWA, its officials, officers, employees, agents and independent consultants serving in the role of PRWA officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including Consultant, its subconsultants, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of Consultant under this Section shall survive the termination of the Agreement.

REQUEST FOR BID (RFB)

PICO RIVERA WATER AUTHORITY

INVENTORY SUPPLIES

PICO RIVERA WATER AUTHORITY
Water Operations Division
6615 Passons Boulevard
Pico Rivera, CA 90660
Issued: November 8, 2023
15b
Enclosure 2
-1-

INTRODUCTION
The Pico Rivera Water Authority, hereinafter referred to as “PRWA”, is seeking bids from qualified vendors, hereinafter referred to as “Bidder”, for PRWA inventory supplies.

Action Date
Request for Bids November 8, 2023
Deadline to Submit Questions November 15, 2023
5:00 p.m.

Deadline to Submit Bids November 29, 2023
2:00 p.m.

II. SCOPE OF SERVICES
A. General Information
The PRWA is seeking bids for procurement and delivery of PRWA inventory supplies per attached specifications and as listed in Attachment A – Bid Proposal Form.

B. Brand Names
References to brand names and/or numbers in the solicitation are intended to be descriptive, unless otherwise specified. If the specific product cannot be supplied by the Bidder, equivalent items meeting the standards of quality specified will be considered.

Unless a Bidder indicates otherwise, it is understood that the Bidder is offering the referenced brand item as specified in the solicitation. The PRWA reserves the right to determine whether a substitute offer is equivalent to and meets the standards of quality indicated by the brand name referenced, and the PRWA may require the supply of additional descriptive material and a sample. It shall be the vendor’s responsibility to assure offered item is equal to the requested item. All equal items shall be submitted with spec sheet. Failure to provide spec sheet for equal items may result in rejection of your Bid of that item or as a whole.

C. Samples
Samples of goods may be required prior to award to determine Bidder’s responsiveness to the RFB’s requirements. If requested, such samples must be provided at no cost and delivered to the address specified within the timeframe identified in the notification. Failure to submit samples as specified may be grounds for rejection of a Bidder’s proposal. Unless expressly set forth in the solicitation the sample of goods furnished must be identical in all respects to the product or products being offered. Bidders offering products of a different manufacturer and model number than those specified in the solicitation may be required to submit samples for inspection and specification compliance testing in order for the PRWA to determine if the item offered is equivalent to and meets the minimum standards of quality acceptable to the PRWA. Samples, if not destroyed by tests, may, upon request made by the Bidder at the time the sample is furnished, be returned at Bidder’s expense.
-2-
D. Cost Proposal, Pricing and Price Adjustments
Bidders must submit fixed pricing as required by Attachment A – Bid Proposal Form. Pricing shall include all anticipated charges, including but not limited to, cost of materials and product, overhead, profit, sales tax, freight and delivery, and other costs or expenses incidental to the Bidder’s performance. It is expected that all Bidders to this solicitation will offer the Bidder’s best government or comparable favorable rates.

E. Term of Agreement
It is PRWA’s intent to enter into an Agreement with the selected vendor for a (2) year term.

PRWA will compensate the vendor for the actual quantities provided. For each approved product order, the Vendor will provide an invoice clearly documenting the material provided and subsequent quantities. Compensation will be based on the Bid Proposal Form.

III. PRWA CONTACT
Bidders must notify the PRWA of any ambiguity, inconsistency or error they may find.

All questions about the RFB must be submitted via Planet Bids by the deadline. Any changes or corrections to the original RFB or any other information that will affect the contract will be disseminated and posted on http://www.pico-rivera.org/rfps/ the PRWA’s electronic procurement service. It is the Bidder’s responsibility to self-register as a vendor with Planet Bids at http://www.pico-rivera.org/rfps/ in order to receive email notifications for any addenda that is released.

IV. DEADLINE FOR SUBMITTING QUESTIONS
Any questions regarding this RFB shall be submitted online using the Planet Bids Portal. The deadline to submit questions shall be no later than November 15, at 5:00 p.m. All questions will be noted, and a consolidated answer list will be sent to all interested Bidders through Planet Bids.

V. FORMAT AND SUBMISSION
All Bidders are required to follow the format content specified below.

1. A detailed fixed cost proposal using Attachment A – Bid Proposal Form

2. Bidder’s Acknowledgement of Insurance Compliance using Attachment C

3. Non-Collusion Affidavit using Attachment D
Bid forms submitted must be signed by an authorized individual or Bid may be deemed non-responsive.

The PRWA will receive via Planet Bids up to Wednesday, November 29, 2022, 2:00 p.m. at which time they will be publicly opened and read aloud. Any bid received after this time will be returned unopened. Bidders are responsible for submitting and allowing -3-
sufficient time for their bid to be accepted by the Planet Bid system before the closing time set forth in this solicitation or as changed by addenda. NOTE: Pushing the submit button on the electronic system may not be instantaneous; it may take time for the Bidder’s submittal and document to upload and transmit before the bid is accepted. It is the Bidder’s sole responsibility to ensure their bid and document(s) are uploaded, transmitted, and arrive in time electronically. The City will have no responsibility for bids that do not arrive in a timely manner, no matter what the reason. All Bids must be made on the form furnished by the PRWA (Attachment A).

Bids must remain valid and shall not be subject to withdrawal for 90 calendar days after the Bid opening date.

Faxed or e-mailed bids will not be accepted as this RFB requires bids to be submitted through the Planet Bids system
(https://pbsystem.planetbids.com/portal/41481/portal-home ).

VI. SELECTION PROCESS
A. Responsive Bidder/ Responsible Bidder
After the public bid opening, where the apparent low bid is identified, bids will be reviewed to ascertain that they are in compliance with the RFB requirements. Bidders may be deemed non-responsive for failure to comply with the requirements set forth herein.

B. AWARD PROCESS
Once the lowest responsible/responsive Bidder has been determined, a Notification of Intent to Award will be issued to all Bidders who submitted a bid identifying the lowest responsible/responsive Bidder.

C. COMMENCEMENT OF SERVICES
A Purchase Order will be issued once:

1. Council authority is granted, if applicable.

2. All agreements have been executed.

3. Verification of current vendor application & W-9 State Tax Form.

Commencement of services shall begin once Bidder receives the Notice to Proceed and Purchase Order.

VII. STANDARD TERMS & CONDITIONS
In addition to the previous requirements, the Bidder shall, at minimum, perform or make provisions for the following general requirements:

A. Addenda: The PRWA reserves the right to modify and issue addenda to this RFB. A signed copy of all addenda shall be submitted as part of the bid.

Bidder shall be responsible for monitoring Planet Bids to ensure it has all addenda, and failure to include the addenda may result in a non-responsive submittal. Addenda shall become a part of this RFB and any Agreement, which may -4-
result from this solicitation.

B. Additional Information: Provide the PRWA with any additional information it deems necessary to accurately determine Bidders ability to perform services, and/or provide products proposed. During selection process, the PRWA may conduct any reasonable inquiry from any and all sources concerning the bid, including reference verification to determine the responsibility of the Bidder. Furthermore, submission of a bid constitutes permission by the Bidder for the PRWA to verify all information contained therein. Failure to comply with any request for additional information may disqualify the Bidder from further consideration.

C. Bid Commitment: The bid shall be firm and binding for 90 days after the submittal deadline. Submission of a bid shall constitute a commitment on the part of the Bidder to furnish the products/services set forth in this RFB. Bidder may withdraw a bid only by written request received by the PRWA prior to the deadline for bid submissions.

D. Bid Errors: PRWA is not responsible for errors or omissions on the part of Bidders in drafting their bids. In the event of a calculation error, the unit price shall prevail. The PRWA is not responsible for any conclusions or interpretations made by the Bidder regarding information provided by the PRWA. If there are any discrepancies between the unit price and the extended amount, the unit price shall control. PRWA reserves the right, but shall not be obligated, to waive any non-material errors included in any proposal in its sole discretion.

E. Compliance with Laws. All proposals shall comply with all current federal, state, local laws, regulations, ordinances, rules, and code sections applicable to Bidders’ proposal and the performance of an obligations.

F. Conflict of Interest. By signing the Certification of Bid (Attachment D), the Bidder declares and warrants that no elected or appointed official, officer or employee (as defined by Government Code §1090) of the PRWA has been or shall be compensated, directly or indirectly, in connection with this proposal or any work connected with this proposal. Should any agreement be approved in connection with this Request for Bid, Bidder declares and warrants that no elected or appointed official, officer or employee of the PRWA, during the term of his/her service with the PRWA shall have any direct interest in that agreement, or obtain any present, anticipated or future material benefit arising therefrom.

G. Costs. The PRWA is not liable for any costs incurred by Bidders before entering into a formal contract. Costs of developing the proposals, or any other such expenses incurred by the Bidder in responding to this RFB, are entirely the responsibility of the Bidder, and shall not be reimbursed in any manner by the PRWA. No reimbursable cost may be incurred in anticipation of award.

H. Contractual Obligation: After the PRWA selects a Bidder, the contents of the submitted bid will become a contractual obligation. The RFB and any addenda, Bidder’s bid, and the Agreement constitute the entire Agreement between the Bidder -5-
and the PRWA and shall incorporate the provisions thereof. Failure of the Bidder to agree to include all portions thereof as contractual Agreement, may result in cancellation of the award.

I. Disclaimer: This RFB does not commit the PRWA to continue with the procurement of the subject services/products nor to enter into an Agreement with any Bidder. The PRWA makes no representation that any Agreement will be awarded. In the event of award, the PRWA makes no guarantee to expend any agreement amount to its maximum. Award of an Agreement may require Pico Rivera Water Authority Board authorization. Furthermore, the PRWA may reject all bids and re-issue the RFB at any time for any reason at its sole discretion.

J. Late Bid: Late bids will not be considered. It is the Bidder’s responsibility to ensure that the bid arrives on or before the specified time. The PRWA will not be responsible for bids not properly marked and/or delivered. Postmarks will not be accepted in lieu of actual receipt.

K. Evidence of Insurance: In the event an Agreement is awarded, Bidder shall provide evidence of insurance coverall by an admitted California insurer legally licensed and qualified to conduct business in the State of California in accordance with the provisions described herein, prior to the commencement of services. The required insurance coverage shall be maintained for the duration of the Agreement: General Liability insurance presently in effect with a combined single limit of not less than $1,000,000 per occurrence, and $2,000,000 aggregate; and vehicle insurance (where applicable) is in effect with a minimum coverage of $1,000,000 per occurrence.

The Certificate of Insurance shall provide:
a) That the insurer will not cancel the insured’s coverage without thirty (30) days prior notice to the PRWA;
b) That the PRWA, and its employees, volunteers, officers, and agents of each of them, are included as additionally insured, but only insofar as the operations under this contract are concerned.
c) That the PRWA and its employees, officers, and agents of each of them will not be responsible for any premiums or assessments on the policy; d) That the insurer has an AM Best rating of A: VII or equivalent.

Supplier agrees that the bodily injury liability insurance herein provided shall be in effect at all times during the term of this contract. In the event said liability insurance coverage expires at any time or times during the term of this contract, contractor agrees to provide notice at least thirty (30) days prior to said expiration date, a new certificate of insurance evidencing insurance coverage as provided herein for not less than the remainder of the term of the contract, or for a period of not less than one (1) year.

New Certificates of Insurance are subject to approval and the contractor agrees that no work or services shall be performed prior to the giving of such approval. In the event contractor fails to keep in effect at all times insurance coverage as herein provided, the PRWA may in addition to any other remedies it may have, terminate this contract upon -6-
the occurrence of such event.

Worker’s Compensation insurance coverage as required by the State of California of$1,000,000 per occurrence.

L. Non-Collusion. If there is reason to believe that collusion exists among the Bidders, the PRWA may refuse to consider proposals from participants in such collusion.

No person, firm, or corporation under the same or different name, shall make, file, or be interested in more than one proposal for the same work unless alternate proposals are called for. Reasonable grounds for believing that any Bidder is interested in more than one Proposal for the same work will cause the rejection of all Proposals for the work in which a Bidder is interested. If there is reason to believe that collusion exists among the Bidders, the PRWA may refuse to consider Proposals from participants in such collusion.

Bidders shall submit as part of their Proposal documents the completed Non-Collusion Affidavit (Attachment E).

M. Non-Discrimination. Bidder represents and warrants that it does not and will not discriminate against any employee or applicant for employment because of race, religion, gender, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancy related conditions, political affiliation or opinion, age or medical condition.

N. Payments and Invoicing: Unless otherwise agreed, payment will not be made until goods/services are delivered and accepted as specified. Invoices presented for payment must be submitted in accordance with instructions contained on the purchase order. In order to receive prompt payment, send invoices directly to: Pico Rivera Water Authority, Attn: Accounts Payable, 6615 Passons Blvd., Pico Rivera, CA 90660. The PRWA’s standard payment terms are Net 30 days.

O. Property of PRWA: All bids and materials submitted become the property of the PRWA and may be used by the PRWA in any way it deems appropriate. In addition, any bids submitted shall be subject to disclosure under the California Public Records Act.

P. Reservation of Rights: The PRWA expressly reserves the right to modify and/or suspend any and all aspects of the RFB, to obtain further information from any Bidder responding to this RFB, to waive any defect as to form or content of this RFB or any response thereto, to extend deadlines for accepting responses, to reject any and all bids or responses to the RFB, and to choose the firm that best serves the PRWA’s interests, at its own discretion. Should all bids be rejected, a written notification will be sent to all Bidders to this effect. The PRWA also reserves the right to select another Bidder in the case that the original Bidder, for any reason, is unable to perform, or is dismissed from the Project.

Q. Severability: If any provisions or portion of any provision, of this RFB are held invalid, illegal or unenforceable, they shall be severed from the RFB and the remaining provisions shall remain valid and enforceable. -7-
R . Submission Cost: The PRWA will not be liable for any costs incurred in the preparation of bids or incidental to the preparation and presentation of qualifications orally or in writing. All costs for preparation, submission of bids, submission of additional information, delivery, and/or any other aspect of the RFB incurred by the Bidder are the sole responsibility of the Bidder.

ATTACHMENTS:
1) Attachment A: Bid Proposal Form
2) Attachment B: Sample Vendor Agreement
3) Attachment C: Vendor’s Acknowledgement of Insurance Compliance 4) Attachment D: Non-Collusion Affidavit
-8-

ATTACHMENT A

BID PROPOSAL FORM

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT

BRONZE SERVICE
SADDLES – DOUBLE
STRAP
Acceptable Brass Manufacturers are
Mueller, Jones, Ford or approved equal
1 4'' AC & Ductile iron – Iron
Pipe (IP) thread Each 10 $ $
2 4'' AC Ductile iron - IP thread Each 5 $ $
3 6'' AC - IP thread Each 20 $ $
4 6'' Ductile iron - IP thread Each 10 $ $
6 8'' AC - IP thread Each 30 $ $
6 8'' Ductile iron - IP thread Each 15 $ $

CORPORATION STOPS
Acceptable Brass Manufacturers are
Mueller, Jones, Ford or approved
equal
7 1'' - IP thread Each 60 $ $
8 2'' -IP thread Each 30 $ $

SERVICE FITTINGS
Acceptable Brass Manufacturers are
Mueller, Jones, Ford or approved
equal. Mueller Part Numbers Listed
As Reference Only
9 Straight Meter Coupling -
5/8" x 3/4" x 3/4" Each 50 $ $
10 Straight Meter Coupling - 1" Each 40 $ $
11 Pack Joint Coupling 1" Each 65 $ $
12 Pack Joint Coupling
P-15403N 1" x 3/4" Each
30 $ $
-9-

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT
13 Pack Joint Coupling
P-15403N 2" Each 25 $ $
14 Pack Joint Coupling
E-15404N 3/4'' Iron Pipe
Size (IPS) Polyethylene (PE)
Each
20 $ $
15 Pack Joint Coupling
E-15404N 1'' IPS PE Each 20 $ $
16 Pack Joint Coupling
E-15404N 2'' IPS PE Each 20 $ $
17 Pack Joint Coupling
E-15443N 3/4'' IPS Push
Joint (PJ) X 1'' CTS PJ
Each
30 $ $
18 Straight Coupling V-15442N
3/4'' IPS PJ X 3/4'' Female
Iron Pipe (FIP)
Each
20 $ $
19 Straight Coupling V-15442N
1'' IPS PJ X 1'' FIP Each 20 $ $
20 Straight Coupling V-15442N
2'' IPS PJ X 2'' FIP Each 15 $ $
21 Straight Coupling V-15440N
3/4'' IPS PJ X3/4'' Male Iron
Pipe (MIP)
Each
30 $ $
22 Straight Coupling V-15440N
1'' IPS PJ X 1'' MIP Each 40 $ $
23 Straight Coupling V-15440N
2'' IPS PJ X 2'' MIP Each 15 $ $
24 Pack Joint x MIP Coupling
P-15428N 1" x 3/4" Each 50 $ $
25 Pack Joint x MIP Coupling
P-15428N 1" Each 50 $ $
26 Pack Joint x MIP Coupling
P-15428N 2" Each 30 $ $
27 Pack Joint x FIP Coupling
P-15451N 1" x 3/4" Each 50 $ $
28 Pack Joint x FIP Coupling
P-15451N 1" Each 50 $ $
-10-

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT
29 Pack Joint x FIP Coupling
P-15451N 2" Each 30 $ $
30 Pack Joint Quarter Bend
P-15526N 1" Each 30 $ $
31 Pack Joint Quarter Bend
P-15526N 2" Each
20 $ $
32 Pack Joint Coupling
Copper Tube Size (CTS) PJ
X IPS PJ –
E15443N 3/4" x 1"
Each
30 $ $
33 Coupling CTS PJ X Copper
Flair - P-15071N 1" x 3/4" Each 50 $ $
34 Coupling CTS PJ X Copper
Flair - P-15071N 1" Each 50 $ $
35 U Branch Connection P25250N/B-25251N 1” Each 15 $ $ 36 Ball Angle Meter Valve P24258N 5/8" x 3/4" x 1" Each 60 $ $ 37 Ball Angle Meter Valve P24258N 1" Each 60 $ $
38 Ball Angle Meter Valve B24265N 5/8" x 3/4" x 3/4" Each 40 $ $ 39 Ball Angle Meter Valve B24265N 5/8" x 3/4" x 1" Each 40 $ $ 40 Ball Straight Meter Valve B24351N 5/8" x 3/4" x3/4" Each 20 $ $ 41 Ball Straight Meter Valve B24351N 1" Each 20 $ $
42 Ball Straight Service Valve
B-20200N 3/4'' Each 40 $ $
43 Ball Straight Service Valve
B-20200N 1'' Each 40 $ $
44 Ball Straight Meter Valve B24337N 2'' Each 20 $ $
-11-

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT
45 Ground Key Angle Meter
Valve P-14277N 2'' Each 10 $ $
46 Ball Straight Service Valve
B-20200N 2'' FIP Each 10 $ $
47 1'' CTS Poly Pipe Inserts Each 250 $ $
48 2'' CTS Poly Pipe Inserts Each 100 $ $
49 1'' CTS Poly Pipe
MuniciPex 100' ROLL Each 20 $ $
50 2'' CTS Poly Pipe
MuniciPex 100' ROLL Each 5 $ $
51 3/4'' Meter Gaskets 1/16''
Thick Rubber
Each 1,000 $ $
52 3/4'' Meter Gaskets 1/16''
Thick Poly/Nylon
Each 1,000 $ $
53 1'' Meter Gaskets 1/16''
Thick Rubber
Each 1,000 $ $
54 1'' Meter Gaskets 1/16''
Thick Poly/Nylon
Each 1,000 $ $
55 1-1/2'' Meter Flange Gaskets Each 300 $ $
56 2'' Meter Flange Gaskets Each 300 $ $

METER BOXES & COVERS
Armorcast, DFW or Approved Equal
$ $
57 Meter Box - A6000494 Each 50 $ $
58 Meter Box Cover -
A6000482 Each 40 $ $
59 Meter Box Cover -
A6000482 TR Each 30 $ $
60 Meter Box - A6000486 Each 75 $ $
61 Meter Box Cover -
A6000483 Each 60 $ $
-12-

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT
62 Meter Box Cover -
A6000483 TR Each 30 $ $
63 Meter Box - A6001419 Each 30 $ $
64 Meter Box Cover -
A6001420 Each 20 $ $
65 Meter Box Cover -
A6001420 TR Each 20 $ $
66 Meter Box -
A6001946PCX12 Each 15 $ $
67 Meter Box Cover -
A6001866 Each 10 $ $
68 Meter Box Cover -
A6001866 TR Each 10 $ $

GATE & BUTTERFLY
VALVES
Mueller Co. or Approved Equal. Gate
Valves Must Meet AWWA C509
Specification, with Integral Stems (Low
Zinc Manganese Bronze) and Fully
Encapsulated Iron Wedge. Butterfly
Valves Must Meet AWWA C504
Specifications.
69 4'' Mueller Gate Valve -
A2362- Flange (FLG) X FLG
- 306
Each
1 $ $
70 4'' Mueller Gate Valve -
A2362- FLG X Mechanical
Joint (MJ) - 19
Each
1 $ $
71 4'' Mueller Gate Valve -
A2362 - MJ X MJ - 23 Each 1 $ $
72 6'' Mueller Gate Valve -
A2362 - FLG X FLG - 306 Each 2 $ $
73 6'' Mueller Gate Valve -
A2362 - FLG X MJ - 19 Each 4 $ $
74 6'' Mueller Gate Valve -
A2362 - MJ X MJ - 23 Each 2 $ $
75 8'' Mueller Gate Valve -
A2362 - FLG X FLG - 306 Each 2 $ $
-13-

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT
76 8'' Mueller Gate Valve -
A2362 - FLG X MJ - 19 Each 4 $ $
77 8 '' Mueller Gate Valve -
A2362 - MJ X MJ - 23 Each 2 $ $
78 10'' Mueller Butterfly Valve
Lineseal III FLG X FLG
150B
Each
2 $ $
79 12'' Mueller Gate Valve
Lineseal III FLG X FLG
150B
Each
2 $ $

FLEX COUPLINGS
Flex Couplings to be Romac or
Approved Equal. Must be Wide
Range Coupling.
80 4'' XR 501 Each 6 $ $
81 6'' XR 501 Each 10 $ $
82 8'' XR 501 Each 10 $ $
83 10'' XR 501 Each 6 $ $

FULL CIRCLE REPAIR
CLAMPS
84 3/4'' CTS .88 X 3'' Each 30 $ $
85 1'' CTS 1.13 X 3'' Each 50 $ $
86 3/4'' IPS 1.05 X 3'' Each 30 $ $
87 1'' IPS 1.32 X 3'' Each 50 $ $
88 4'' - 4.80 - 5.27 X 12'' Each 4 $ $
89 6'' - 6.90 - 7.37 X 12'' Each 6 $ $
90 8'' - 9.05 - 9.57 X 12'' Each 6 $ $
91 10'' - 11.10 - 12.12 X 12'' Each 4 $ $
-14-

ITEM DESCRIPTION UNIT ESTIMATED

QUANTITY
UNIT
PRICES

EXTENDED
AMOUNT

FIRE HYDRANTS
Jones or approved equal Each
92 6'' X 4'' X 2-1/2'' JONES - J4040 Each 4 $ $
93 6'' X 4'' X 2-1/2'' JONES - J4048 Each 8 $ $
94 4'' X 2-1/2'' JONES J-4060 Each 2 $ $

TOTAL BID AMOUNT:
$____________________________________________________
TOTAL BID AMOUNT IN WORDS:
______________________________________________________________________ In case of discrepancy between the unit price and the extended amount set forth for the item, unit price controls.

The proposed total price of each product item shall be determined from reviewing the product description and all other portions of this RFB and shall include all items necessary to supply the inventory supplies, including the assumption of all obligations, duties, and responsibilities necessary, and the furnishing of all materials required; all as per the requirements of this RFB, whether or not expressly listed or designated.

NOTE: Items may be adjusted or deleted. Any changes to the quantities for these items shall not constitute a substantial change. No adjustment in the unit prices will be allowed.

PRWA reserves the right to not use any of the estimated quantities; and if this right is exercised, the Supplier will not be entitled to any additional compensation. -15-

ATTACHMENT B

SAMPLE VENDOR AGREEMENT
-16-

PICO RIVERA WATER AUTHORITY

WATER OPERATIONS DIVISION

VENDOR AGREEMENT
Pico Rivera Water Authority Inventory Supplies
**************************************************************************************************** This “Agreement” is made on _________________ ___, 2023, by and between the Pico Rivera Water Authority (“PRWA”) and
_________________________________________ (“Vendor”) (collectively “Parties”).

The term of this Agreement (“Term”) shall commence on ____________ (“Effective Date”) and shall expire on ____________(“Expiration Date”) unless extended in writing by an amendment to this Agreement executed by both Parties.

Vendor shall provide Services in a reasonable and professional manner customary to the standards of the industry. Vendor represents that they are trained and qualified to provide the services as required by this Agreement. All Services and all associated materials, equipment, products, or goods shall be performed or provide in compliance with all applicable all State, Federal and Local laws, ordinances, codes and regulations that in any manner affect the Services provided under this Agreement including but not limited to any necessary permits or regulatory approvals, and all non-discrimination and equal opportunity laws and regulations applicable to this Agreement. Vendor covenants and acknowledges that it does not now have nor shall it acquire any financial or business interest that would conflict with the performance of Services under this this Agreement, or which would conflict in any manner with the performance of its Services hereunder.

Services description: delivery, set-up, take down, and removal of the equipment and/or uniforms specified in Vendor’s proposal, attached hereto as Exhibit B and incorporated herein by this reference (“Services”). In the event of any conflict between Vendor’s proposal and this Agreement, the provisions of this Agreement shall control. Any changes to the Services provided herein shall not be valid unless memorialized in a written change order or amendment approved by all Parties.

Location: 9633 Beverly Rd, Pico Rivera CA 90660
Vendor shall deliver material on the following date: ___Various___________________ Vendor shall arrive at the venue on the Delivery Date and be completely set up no later than the specified start time. Vendor shall remove the equipment and/or uniforms on the date and time specified above.

The Parties agree and understand that Vendor is not an employee of PRWA but shall be solely an independent contractor acting under the terms and conditions set forth herein.

Vendor reserves the right to determine the assignment of its own employees to the performance of this Agreement. Vendor shall have no power to incur any debt, obligation, -17-
or liability on behalf of PRWA or otherwise to act on behalf of PRWA as an agent. Neither PRWA nor any of its officers, employees or agents shall have control over the conduct of Vendor or any of Vendor’s employees, except as set forth in this Agreement. Vendor shall not at any time represent that it is, or that any of its agents or employees are, in any manner employees of PRWA. Vendor shall be solely responsible for all federal and state income taxes and any other applicable taxes. Vendor shall not be an employee of PRWA for Workers Compensation or any other purposes and shall not receive Unemployment Insurance benefits, Social Security coverage or other employee benefits. Vendor understands and agrees that Vendor shall not be an employee of PRWA as defined in the California Labor Code. Vendor shall indemnify, defend, and hold harmless PRWA for the payment of any employee and/or employer contributions for PERS benefits on behalf of Vendor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of PRWA.

All data, documents, discussion, or other information developed or received by Vendor or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Vendor without prior written consent by PRWA even after the expiration or termination of this Agreement. Vendor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. PRWA shall have the right to access and examine such records, without charge, during normal business hours. PRWA shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

PRWA agrees to pay Vendor an amount not to exceed One Hundred Fifty Thousand Dollars_________ ($150,000.00) in accordance with the unit prices indicated on Exhibit B.

Prior to each anniversary of the Effective Date of this Agreement, the unit prices included in Exhibit B shall increase by an amount equal to the percent change in the Consumer Price Index for Los Angeles, Riverside-Orange County, as compared to the prior year. In no event shall any annual increase to the unit prices based on CPI exceed three percent (3%). Vendor shall not be entitled to any additional reimbursement or payment from PRWA. Any corresponding increase or decrease in compensation associated with a change in the amount or level of Services, shall be incorporated by written amendment to this Agreement executed by all Parties.

PRWA may terminate this Agreement at any time, with or without cause, by giving five (5) days prior written notice of such termination to Vendor, and by specifying the effective date thereof. If this Agreement is terminated by PRWA as provided herein, Vendor shall be paid for its services satisfactorily rendered to PRWA as of the date of termination. In no event shall the amount paid by PRWA exceed the amount which would be paid Vendor for the full provision of services under this Agreement. Vendor shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without PRWA’s prior written consent, and any attempt to do so shall be void and of no effect.

Vendor shall obtain a City of Pico Rivera business license prior to commencing performance under this Agreement. Vendor shall defend, indemnify, and hold harmless -18-
the PRWA, its officials, and every officer, employee and agent of PRWA (collectively “Indemnitees”) from any claim, liability or financial loss (including, without limitation, attorneys’ fees and costs), injuries to property or persons (including without limitation, attorneys’ fees and costs) arising out of any acts or omissions of Vendor, its officials, officers, employees or agents in connection with the performance of this Agreement, except for such claim, liability or financial loss or damage arising from the sole negligence or willful misconduct of the Indemnitees, as determined by judicial decision or by the agreement of the Parties. Vendor shall defend Indemnitees, with counsel of PRWA’s choice, at Vendor’s own cost, expense, and risk, and shall pay and satisfy any judgment, award, or decree that may be rendered against the Indemnitees. Vendor shall reimburse Indemnitees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Vendor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Vendor or Indemnitees. No official or employee of the PRWA shall be personally liable to Vendor in the event of any default or breach by Indemnitees, or for any amount which may become due to Vendor. All duties of Vendor under this Section shall survive termination of this Agreement.

Vendor warrants and represents that the individual executing this Agreement below has the full right and authority to enter into this Agreement, and authority to fully commit and bind Vendor to the provisions of this Agreement. The waiver by PRWA or Vendor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.

If a Party commences any legal, administrative, or other action against the other Party arising out of or in connection with this Agreement, the prevailing Party in such action shall be entitled to have and recover from the losing Party all of its attorneys’ fees and other costs incurred in connection therewith, in addition to such other relief as may be sought and awarded.

This Agreement represents the entire integrated agreement between PRWA and Vendor, and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended only by a written instrument signed by both PRWA and Vendor. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement.

The interpretation and implementation of this Agreement shall be governed by the domestic law of the State of California. Any litigation concerning this Agreement shall take place in the superior or federal district court with geographic jurisdiction over the City of Pico Rivera.
-19-
Vendor’s address for notices under this Agreement:

NAME, TITLE
INSERT VENDOR’S NAME

ADDRESS

CITY, STATE, ZIP
EXHIBIT A (ADDITIONAL TERMS AND CONDITIONS) AND B (VENDOR’S

PROPOSAL) ARE ATTACHED HERETO IS INCORPORATED HEREIN BY THIS

REFERENCE
This writing constitutes the entire Agreement between PRWA and Vendor and may be amended only by written mutual agreement. THIS CONTRACT MUST BE SIGNED AND RETURNED TO THE PRWA’S PUBLIC WORKS DEPARTMENT OFFICE PRIOR TO THE START OF THE CONTRACT SERVICE. PAYMENT MAY BE WITHHELD FOR ANY SERVICES PERFORMED PRIOR TO THE EXECUTION OF THIS CONTRACT. “PRWA” “VENDOR”
PICO RIVERA WATER AUTHORITY INSERT VENDOR’S COMPANY NAME ______________________________ ___________________________________ Steve Carmona, INSERT NAME, TITLE
PRWA Executive Director
Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Cynthia Ayala, Authority Secretary Arnold M. Alvarez-Glasman, General Counsel -20-

EXHIBIT A

ADDITIONAL TERMS AND CONDITIONS
Section 1. Insurance.
(a) Vendor shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:

1. A policy or policies of Comprehensive General Liability Insurance, with minimum limits of $1,000,000 for each occurrence, combined single limit, and $2,000,000 aggregate; against any personal injury, death, loss, or damage resulting from the wrongful or negligent acts by Vendor.

2. A policy or policies of Comprehensive Vehicle Liability Insurance covering personal injury and property damage, with minimum limits of $1,000,000 per occurrence combined single limit, covering any vehicle utilized by Vendor in performing the Services required by this Agreement.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease. (b) Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. PRWA, its officials, officers, employees, designated volunteers and agents serving as independent contractors in the role of PRWA officials, are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of Vendor; products and completed operations of Vendor; premises owned, occupied or used by Vendor; or automobiles owned, leased, hired or borrowed by Vendor. The coverage shall contain no limitations on the scope of protection afforded to PRWA, its officials, officers, employees, designated volunteers or agents serving as independent contractors in the role of PRWA officials that are not also limitations applicable to the named insured.

2. For any claims related to this Agreement, Vendor’s insurance coverage shall be primary insurance as respects PRWA, its officials, officers, employees, designated volunteers and agents serving as independent contractors in the role of PRWA officials. Any insurance or self-insurance maintained by PRWA, its officers, officials, employees, designated volunteers or agents serving as independent contractors in the role of PRWA officials shall be excess of Vendor’s insurance and shall not contribute with it.

3. Vendor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

4. Each insurance policy required by this Agreement shall expressly waive the insurer’s right of subrogation against PRWA and its officials, officers, -21-
employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of PRWA officials.

5. Each insurance policy required by this Agreement shall be endorsed to state: should the policy be canceled before the expiration date, the issuing insurer shall mail 30 days’ prior written notice to the PRWA.

6. If insurance coverage is canceled or reduced in coverage or in limits, Vendor shall, within two business days of notice from insurer, phone, fax and/or notify the PRWA via certified mail, return receipt requested, of the changes to or cancellation of the policy.
(c) The PRWA’s Risk Manager may, in writing, amend and/or waive any or all of the insurance provisions set forth herein. In such case, the Vendor shall comply with the insurance provisions required by the PRWA’s Risk Manager. (d) The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A-VII in the latest edition of Best’s Insurance Guide, unless waved in writing by PRWA’s Risk Manager. (e) Vendor agrees that if it does not keep the aforesaid insurance in full force and effect, PRWA may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, PRWA may take out the necessary insurance and pay, at Vendor’s expense, the premium thereon.
(f) All insurance coverages shall be confirmed by execution of endorsements on forms approved by PRWA. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by PRWA before services commence. As an alternative to PRWA forms, Vendor’s insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.
(g) Any deductibles or self-insured retentions must be declared to and approved by PRWA, and shall not exceed $25,000.
(h) Vendor shall require each of its sub-contractors (if any) to maintain insurance coverage that meets all of the requirements of this Agreement. -22-

EXHIBIT B
VENDOR’S PROPOSAL
-23-

ATTACHMENT C
VENDOR’S ACKNOWLEDGEMENT OF COMPLIANCE WITH INSURANCE

REQUIREMENTS FOR AGREEMENT
-24-
VENDOR’S ACKNOWLEDGEMENT OF COMPLIANCE WITH INSURANCE

REQUIREMENTS FOR AGREEMENT
Vendor agrees, acknowledges and is fully aware of the insurance requirements as specified in the Request for Bid and accepts all conditions and requirements as contained therein.

Consultant:

Name (Please Print or Type)

By: Vendor’s Signature
Date: ___________________________
THIS EXECUTED FORM MUST BE SUBMITTED WITH BID.

-25-

ATTACHMENT D
NON‐COLLUSION AFFIDAVIT
-26-
NON‐COLLUSION AFFIDAVIT
The undersigned declares, states and certifies that:

1. This Proposal is not made in the interest of, or on behalf of any undisclosed person, partnership, company, association, organization or corporation. This Proposal is genuine and not collusive or sham.

2. I have not directly or indirectly induced or solicited any other Proposer to put in a false or sham proposal and I have not directly or indirectly colluded, conspired, connived, or agreed with any other Proposer or anyone else to put in sham proposal or to refrain from submitting to this RFB.

3. I have not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price or to fix any overhead, profit or cost element of the proposal price or to secure any advantage against the Pico Rivera Water Authority or of anyone interested in the proposed contract.

4. All statements contained in the Proposal and related documents are true.

5. I have not directly or indirectly submitted the proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay any fee to any person, corporation, partnership, company, association, organization, RFB depository, or to any member or agent thereof to effectuate a collusive or sham proposal.

6. I have not entered into any arrangement or agreement with any Pico Rivera Water Authority public officer in connection with this proposal.

7. I understand collusive bidding is a violation of State and Federal law and can result in fines, prison sentences, and civil damage awards.

Signature of Authorized Representative
Name of Authorized Representative Title of Authorized Representative To: Mayor and City Council
From: City Manager
Meeting Date: February 13, 2024
Subject: ANNUAL COMPREHENSIVE FINANCIAL REPORT,
FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL
YEAR 2022-23 GENERAL FUND YEAR-END RESULTS
Recommendation:

1. Receive and file the Annual Comprehensive Financial Report, fiscal year (FY) ending June 30, 2023;

2. Approve Budget Transfers that allocate the FY 2022-23 Unassigned General Fund Balance of $202,840, and;

3. Approve a General Fund allocating the remaining FY 2022-23 Unassigned General Fund Balance of $4,089,702 towards vehicle purchases, the Smith Park Turf Replacement, and Measure AB Revenue Replacement.

Fiscal Impact:

The discussion below provides a summary of the financial data found in the Annual Comprehensive Financial Report (ACFR) for the FY ending June 30, 2023.

The recommended budget transfers of $202,840 from the General Fund (GL Account No. 100.98.9800-56900) will reduce the negative balances for the Liability Claims Fund (GL Account No. 105.00.0000-47900), the Sewer Maintenance Fund (GL Account No. 225.00.0000-47900), the Federal Aid STPL45351 Fund (GL Account No. 638.00.0000- 47900), the Highway Bridget Program Fund (GL Account No. 661.00.0000-47900), and the Miscellaneous Federal Grant Fund (GL Account No. 698.00.0000-47900). The recommended funding allocations in the amount of $4,089,702 will provide critical needs identified by City staff.

Discussion:

The ACFR is prepared using the guidelines set forth by the Government Accounting Standards Board (GASB) and audited by CliftonLarsonAllen, LLP (CLA), Certified Public Accountants and Consultants. For the year ended June 30, 2023, these financial 16 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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statements received an unmodified opinion by CLA. Their opinion is located at the beginning of the financial section of the report (Enclosure 1).

The ACFR provides a financial summary for the City of Pico Rivera (City) and its component units: the Housing Agency (Authority), Water Authority, and Successor Agency. Major sections of the ACFR are the Introductory Section (including the Transmittal Letter, the Management's Discussion and Analysis), Finance Section, Notes to the Financial Statements, and Statistical Section.

Management's Discussion and Analysis (MD&A) immediately follows the independent auditors' report and provides a narrative overview and analysis of the basic financial statements. The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

Financial Statement Highlights
The ACFR includes many financial schedules that provide information related to various aspects of the City's financial standing. The City's net position (assets less liabilities) increased by $35.2 million, from $339.5 million to $374.7 million. Citywide revenues totaled $125.3 million, an increase of $10.3 million over the prior year. Expenses were $90.1 million, an increase of $1.1 million over the prior year.

Reserves and Fund Balance Policy
To further secure the City's long-term financial health, the City Council first adopted comprehensive reserve policies as part of the FY 2016-17 budget adoption process.

These policies solidified the City's commitment to setting aside funds for economic uncertainty while expanding the policy to allow for assignments of fund balance for capital projects, equipment replacement, leave accruals, and other expenses.

On July 28, 2020, the City Council adopted revised "risk-based" General Fund and Proprietary Fund Reserve Policies, which increased the General Fund's Emergencies/Economic Stabilization Reserve from 25% to 50%. The revised policy also set certain triggers to allow staff and the City Council to reassess budgeted service/personnel levels during economic downturns to ensure ongoing economic stability. The policies are reviewed annually to ensure they remain sufficient to weather a downturn in our economy and were most recently incorporated as part of the FY 2023-24 budget, which the City Council adopted on June 27, 2023.

Significant City Accomplishments and Initiatives
In FY 2022-23, the City has experienced challenges and success, and we take pride in showcasing these achievements. Our City is now better equipped to tackle the present and future challenges that confront local government and our community. The accomplishments throughout this fiscal year underscore our dedication to working collaboratively for the greater good of our community. These achievements, along with CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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numerous others, underscore our unwavering commitment to implementing our strategic priorities, fostering the City's economic well-being, and enhancing the quality of life for our residents and businesses. The City’s performance goals, priorities, and strategies focus on the following areas:
 Fiscal and Organization Sustainability
 Economic Development and Land Use
 Infrastructure
 Health, Wellness and Safety
 Community Engagement
The City’s FY 2022-23 Accomplishments Report brochure is attached in its entirety to this report as Enclosure 2. The report comprises the City's Guiding Plan, Awards, and Recognition grouped according to strategic priorities and the plans and goals for the FY 2023-24.

The entire ACFR can be found on the City's website, with the prior year's financial statements to promote transparency. In addition, FY 2022-23 ACFR is attached in its entirety to this report as Enclosure 1.

General Fund Year-End Results
This report is designed to inform the City Council of the City's year-end financial positions and results of operations. FY 2022-23 General Fund revenues totaled $59.3 million for the year, compared to $50.2 in expenditures and transfers-in. The difference of $9.05 million is shown in Table 1. Later in this report, staff will provide recommendations for allocating this surplus.

Table 1 – General Fund Year-end Results
FY 2022-23 General Fund Results:

Operating Revenues $ 56,495,651
Sale of Capital Assets 928,625
Transfers In 1,847,348
Revenues & Transfers In Total $ 59,271,624
Operating Expenditures $ 47,845,207
Transfers Out - Others 2,378,608
Expenditures & Transfers Out Total $ 50,223,815
FY 2022-23 Results (Revenues Less Expenditures): $ 9,047,809 The positive result stems from greater revenues than budget and expenditures below budget due to the following major components:

CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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Revenue
In the ACFR, the Combined General Fund (CGF) comprises the following funds:

General Fund (GF Fund 100), General Liability Insurance Fund (Fund 105), Worker’s Compensation Claim Fund (Fund 106), Water Enterprise Fund (Fund 551), and Section 115 Pension Trust Fund (Fund 875).

For the fiscal year that concluded on June 30, 2023, the CGF revenues totaled $59.27 million, with the General Fund revenues accounting for $58.72 million, outperforming the Amended Budget estimates by approximately $5.3 million or 9%. The most substantial positive variances can be attributed to Sales Tax, Property Tax, Utility Users Tax, Business License, and All Other Revenue.

At the commencement of FY 2022-23, California's economic prospects faced challenges due to persistently high inflation, continuing interest rate hikes by the Federal Reserve, and further declines in the stock market. However, the economy has been safeguarded from recession by consistent household spending, a situation that stands out despite inflation surpassing Federal Reserve objectives and interest rates on loans and credit cards climbing. In California, the performance of sales tax has continued to exhibit growth.
• Sales Tax revenues came in higher than adjusted budget estimates by $621 thousand. Year-end results exceeded estimates due to factors such as inflation, favorable consumer confidence, and the City's ongoing economic recovery in major sales tax-generating groups. The major sales tax generating groups include General Consumer Goods, Restaurants and Hotels, and Business and Industry. It is important to note that the attributed growth is largely due to the result of higher-priced goods and the continued rebounding from the impact of the pandemic a year ago.
• Property Tax revenue came in higher than the budget estimates due to an increase in median home prices compared to the prior year. Continuing the trend from 2020, 2021 sales volume increased slightly from the prior year; the median price continued to increase due to low interest rates, high demand, and limited properties for sale, as reflected on the 2022/23 tax rolls. The median sale price of Pico Rivera detached single-family homes from January through October 2022 was $690,000, an increase of $80,000 (13.1%) from the median sale price in the same period for 2021.
• Utility Users Tax (UUT) came in over the budget estimates due to increased usage and pricing of electric and natural gas billed charges. When comparing prices of Electricity per Kilowatt Hour (EKH) and Utility (piped) gas per therm (UGT), the Bureau of Labor Statistics shows Los Angeles households are paying an average of 8% per EKH higher in 2023 than per EKH paid in 2022. The average cost of UGT in 2023 was 21% higher than in 2022.

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• Business License came in $1.8 million over the amended budget estimates, primarily due to Measure AB. In November 2022, the City voters overwhelmingly approved Measure AB to modernize the City’s outdated Business License fee structure and to provide equity for small businesses. In FY 2023-24, the City anticipates a further increase in Business License revenues as businesses renew their licenses according to the new fee structure throughout the year. • Parks and Recreation came in over budgeted estimates primarily due to the expansion of recreation programs and contract class offerings in FY 2022-23.

The reopening of in-person programs and services has increased participation and revenue. Field and Facility Rentals, Special Events, Contract Programs, and Camps are the most notable increases.
• License and Permits came in over the budgeted estimates primarily due to an increase in Building permits, Plumbing permits, Heating and Air Conditioning permits, Plan Check fees, Zoning and Planning fees, and Storm Drain (Los Angeles County Hazardous Waste Materials) revenue categories that continue to show favorable growth. It is important to note that certain fee hikes are associated with the rise in building and project valuations. • Franchise Tax came in over the budgeted estimates due to an increase in the price and consumption of electricity and gas within the City compared to the prior fiscal year.
• Transient Occupancy Tax (TOT), the hotel visitor tax, came in over the budgeted estimates and has been consistently on the rise, driven by an uptick in travel activity and a growing number of hotel/motel reservations, now reaching levels comparable to those before the pandemic.
• All Other Revenues came in under the budgeted estimates, which include Fines and Forfeitures, Use of Money, Cost Reimbursement, and Intergovernmental Revenue. The most notable increases are primarily attributed to Sales of Property, Interest Income, and Cost Reimbursements. The one-time revenue for Sales of Property is for the sale of a vacated property site of $0.9 million.

Interest Income has risen compared to the previous year, which can be attributed to the favorable market yields and interest returns. The increase in Cost Reimbursements is attributed to the reimbursement receipts received from Federal and State Grants.

Table 2 on the following page shows revenues by category.

CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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Table 2. General Fund Revenues by Category
Revenue Source
FY 22-23

ADOPTED
BUDGET
FY 22-23

AMENDED
BUDGET
FY 22-23

ACTUALS
$

AMENDED
BUDGET
vs.

ACTUALS
% OVER
(UNDER)

AMENDED
BUDGET
Sales Tax $ 24,482,589 $ 24,495,689 $ 25,116,980 $ 621,291 2% Property Tax 13,044,410 13,044,410 13,569,293 524,883 4% Utility Users Tax 3,159,400 3,159,400 4,001,578 842,178 21% Franchise Tax 970,000 970,000 1,077,004 107,004 10%
Transient Occupancy Tax (TOT) 565,020 565,020 597,129 32,109 5% Business License Tax 1,459,062 1,459,062 3,270,015 1,810,953 55% Parks & Recreation Fees 445,211 445,211 595,679 150,468 25% Licenses & Permits 2,166,564 2,346,564 2,575,557 228,993 9% All Other Revenues* 3,715,872 4,828,577 6,071,696 1,243,119 20% OPERATING REVENUE 50,008,128 51,313,933 56,874,931 5,560,998 10% Transfers In - Others** 1,825,300 2,114,797 1,847,348 (267,449) (14%) TOTAL - GENERAL FUND REVENUE $ 51,833,428 $ 53,428,730 $ 58,722,279 $ 5,293,549 9% *Includes Fines & Forfeitures, Charges for Services, Use of Money, Other Revenue, and Intergovernmental Revenue **Includes Transfer In (Gas Tax)
Table 3 below shows other Combined General Fund Revenues under the General Liability Insurance Fund, the Water Enterprise Fund, and the Pension Section 115 Trust Fund.

Table 3. Total Combined General Fund Revenues
General Fund (Fund 100) $ 58,722,297
General Liability Insurance Fund (Fund 105) 397,989
Water Enterprise (Fund 551) 36,279
Section 115 Pension Trust Fund (Fund 875) 115,059
Total General Fund Revenues FY 2022-23: $ 59,271,624
Expenditure
At the end of June, the General Fund expenditure totaled $49.47 million, including operating expenditures of $46.02 million, which were $8.33 million, or 15% lower than what was initially estimated in the Amended Budget. At the end of the fiscal year, most departments had expenditures that were below their budget estimates. Table 4 shows the General Fund Expenditures by major category. The major variances are elaborated upon in Table 5.

CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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Table 4. General Fund Operating Expenditure Summary

GENERAL FUND OPERATING EXPENDITURE SUMMARY
FY 22-23

ADOPTED
BUDGET
FY 22-23

AMENDED
BUDGET
FY 22-23

ACTUALS
$

AMENDED
BUDGET
vs.

ACTUALS
% OVER/
(UNDER)

AMENDED
BUDGET
TOTAL Salaries & Benefits 20,577,367 20,481,328 18,717,533 $ (1,763,795) (9%) TOTAL Maintenance & Operations 29,043,366 33,872,669 27,306,945 (6,565,724) (19%) TOTAL GENERAL FUND OPERATING EXPENDITURE SUMMARY $ 49,620,733 54,353,997 46,024,477 $ (8,329,520) (15%) • Salaries and Benefits expenditures came in lower than budgeted by $1.76 million, primarily due to an average of eleven vacancies in full-time positions throughout the year.
• Maintenance and Operations came in lower than budgeted by $6.57 million, of which $2.32 million were identified as projects or services continuing into the next fiscal year. As such, they have been properly included in the YearEnd Open Purchase Order report that spans all departments. Other variances were mainly due to ongoing appropriations for programs and multiyear projects that were in progress as of June 30, 2023. These Council driven projects require funding over multiple fiscal years. Examples include the CED Strategic Plans and Studies, upgrades to the City Hall Council Chamber and Media Division System, the Automated License Plate Reader (ALPR) program by Flock Safety, community outreach enhancements, etc. [This space intentionally left blank]
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Table 5. General Fund Expenditures by Department

DEPARTMENT / EXPENDITURE CATEGORY
FY 22-23

ADOPTED
BUDGET
FY 22-23

AMENDED
BUDGET
FY 22-23

ACTUALS
$

AMENDED
BUDGET
vs.

ACTUALS
% OVER/
(UNDER)

AMENDED
BUDGET

ADMINISTRATION
Salaries & Benefits $ 1,597,743 $ 1,622,835 $ 1,788,102 $ 165,267 10% Maintenance & Operations 621,675 1,608,318 780,873 (827,445) (51%) TOTAL ADMINISTRATION 2,219,418 3,231,153 2,568,974 (662,179) (20%) PUBLIC SAFETY ***
Law Enforcement - Los Angeles County Sheriff 12,854,647 13,398,518 12,651,645 (746,873) (6%) TOTAL PUBLIC SAFETY 12,854,647 13,398,518 12,651,645 (746,873) (6%) COMMUNITY & ECONOMIC DEVELOPMENT ****
Salaries & Benefits 3,870,328 3,848,041 3,448,790 (399,251) (10%) Maintenance & Operations 3,642,837 4,424,456 1,474,937 (2,949,519) (67%) TOTAL COMMUNITY & ECONOMIC DEVELOPMENT 7,513,165 8,272,497 4,923,727 (3,348,770) (40%)

ADMINISTRATIVE SERVICES
Salaries & Benefits 2,126,529 1,957,478 1,690,146 (267,332) (14%) Maintenance & Operations 805,997 1,331,282 1,015,434 (315,848) (24%) TOTAL ADMINISTRATIVE SERVICES 2,932,526 3,288,760 2,705,581 (583,179) (18%) Non-Departmental
Salaries & Benefits 1,914,700 1,914,700 1,832,545 (82,155) (4%) Maintenance & Operations 4,892,690 4,851,239 4,415,203 (436,036) (9%) TOTAL NON-DEPARTMENTAL 6,807,390 6,765,939 6,247,749 (518,190) (8%)

HUMAN RESOURCES
Salaries & Benefits 670,160 634,795 657,857 23,062 4%
Maintenance & Operations 386,632 435,632 336,579 (99,053) (23%) TOTAL HUMAN RESOURCES 1,056,792 1,070,427 994,436 (75,991) (7%)

PARKS & RECREATION
Salaries & Benefits 5,131,020 5,127,327 4,494,252 (633,075) (12%) Maintenance & Operations 1,158,541 1,830,496 1,386,432 (444,064) (24%) TOTAL PARKS & RECREATION 6,289,561 6,957,823 5,880,684 (1,077,139) (15%)

PUBLIC WORKS
Salaries & Benefits 5,266,887 5,376,152 4,805,841 (570,311) (11%) Maintenance & Operations 4,680,347 5,992,728 5,245,841 (746,887) (12%) TOTAL PUBIC WORKS 9,947,234 11,368,880 10,051,682 (1,317,198) (12%) TOTAL GENERAL FUND OPERATING EXPENDITURES 49,620,733 54,353,997 46,024,477 (8,329,520) (15%) Transfers Out - Operating 1,065,000 1,065,000 1,065,000 - 0% Transfers Out - Non-Operating 1,147,695 2,378,609 2,378,609 - 0%

TOTAL GENERAL FUND EXPENDITURES &
TRANSFERS OUT $ 51,833,428 $ 57,797,606 $ 49,468,086 $ (8,329,520) (14%) Table 6 below shows Other General Fund expenditures under the Liability Claims, Workers’ Compensation Claims Funds, and our Section 115 Pension Trust Fund.

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Table 6. Total General Fund Expenditures
Discussion of departments with significant variances from the amended budget are as follows:
• Administration year-end expenditures came in 20% lower than the amended budget, primarily due to ongoing contracts for projects, such as the multi-year document scanning project and the Historical Whittier Blvd Multi-Modal Revitalization Plan and the Whittier Narrows Dam projects that will continue into FY 2023-24.
• Public Safety year-end expenditures came in 6% below budget primarily due to the carry-over encumbrance from the prior year for the ongoing Automated License Plate Reader (ALPR) program by Flock Safety, which was approved in FY 2021-22 and continued into FY 2022-23. The ALPR program is a system of cameras and supporting software that captures license plate information and instantly compares plate numbers to a database that aids law enforcement in criminal investigations and crime reductions.
• Administrative Services year-end expenditures came in 18% lower than the amended budget due to vacancy salary savings and lower IT software and license expenditures. The ongoing Professional Services expenditures for some Software Licensing, Business License Tax, and Tobacco Retail License in the Administrative Services and IT Budget came in lower as the projects and programs will continue into FY 2023-24.
• Community and Economic Development (CED) actual expenditures came in 40% below budget due to salary savings from an average of three (3) vacant positions throughout the fiscal year and ongoing contracts and projects that will continue into FY 2023-24. The contracts and projects include Professional and Contracted Services such as Building and Planning Inspector services, implementation of the Online Permit Program, the Permanent Local Housing Allocation Program (PLHAP), and other Community and Economic Development Strategic Plans and Studies that are expected to be ongoing in FY 2023-24.

General Fund (Fund 100) $ 49,468,086
General Liability Insurance Fund (Fund 105) 598,156
Workers Compensation Claims Fund (Fund 106) 150,547
Section 115 Pension Trust Fund (Fund 875) 7,026
Total General Fund Revenues FY 2022-23: $ 50,223,815
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• Parks and Recreation came in 15% under budget, mainly due to salary savings from vacant Full-time positions and Part-time positions salary savings primarily in Recreation Facilities and Programs, Senior Services, Camps, and Youth Sports.

Maintenance and Operation expenditures came in below budget primarily due to Contracted Services for the Aquatics division holding a reduced number of contracted programming events, the Marketing and Promotions division not printing the Recreation Guide along with difficulties purchasing materials that were backordered, and the Senior Services division for the Senior Center Americans with Disabilities Act (ADA) and Safety project that is expected to be ongoing in FY 2023-24.
• Public Works came in 12% under budget due to a combination of salary savings in unfilled full-time and hourly positions. Maintenance and Operation expenditures came in under budget, primarily due to ongoing professional and contracted services for median island maintenance, landscaping services, traffic signal maintenance, stormwater lift station maintenance, and other projects that are expected to continue in FY 2023-24. Notably, contracted services for traffic signal maintenance encountered a reduced number of service calls and repairs, particularly for streetlight knockdowns and replacements. Additionally, challenges arose in obtaining materials for contracted services related to fire suppression retrofitting at City facilities, leading to project delays. Consequently, staff conducted more in-house maintenance and repairs to facilities that are expected to continue in FY 2023-24. Ongoing projects and agreements for median island maintenance and landscaping services were in progress, set to continue in FY 2023-24.
• Operating Transfers Out came in at budgeted estimates for the annual transfer of $1.065 million in Sales Tax Pledges from the General Fund to the Successor Agency (Fund 851).
• Non-Operating Transfers Out came in at budgeted estimates and included a combination of $1.147 million, $562 thousand, and $332 thousand from the FY 2022-23 Amended Budget for funding for Community and Economic Development Strategic Projects, General Fund Capital Improvement Projects, and FY 2022-23 Mid-Year budget adjustments for the Liability Claims, Workers Compensation, and Financial System Funds.

Fund Balance – General Fund
The FY 2022-23 General Fund operating revenue actuals are $5.29 million higher than the amended budget due to stronger than anticipated Sales Tax, Property Tax, Utility User's Tax, and Business License revenues. The General Fund operating expenditure actuals are below the amended budget by $8.47 million, resulting from staff vacancies throughout the year and the continuance of some programs and projects into FY 2023-

24. CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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The FY 2022-23 General Fund Year-End projections provided in the FY 2022-23 Third Quarter Budget Review showed revenues tracking better than expected at $4.25 million above expenditures. The General Fund Year-End Revenues were trending higher than anticipated, primarily due to improved Sales Tax, Property Tax, Utility Users Tax, and Interest Income revenues received to date since March 31, 2023, ending June 30, 2023, FY 2022-23 General Fund revenues came in better than expected at $6.75 million above expenditures due to revenues exceeding Third Quarter projections and departments actively continuing to reduce expenditures and impacts on the General Fund.

Table 7 reflects the General Fund Balance per GASB 54 classifications as of June 30, 2023.

Table 7 – Fiscal Year End 2022-23 General Fund Balance
General Fund Balance, June 30, 2023:

Nonspendable (Advances Receivable and Others) $ 26,900,752 Committed (Fund Balance Requirement - 50% of GF Revenues) 28,903,778 Restricted (Pension Contribution and Others) 1,335,720
Assigned (Fund Balance Policy Designations)
OPEB Unfunded Liability $ 856,070
Leave Liability 592,400
Equipment Replacement 556,020
Self-insured Retention 500,000
Bond Refinancing/Reserve 1,000,000
Capital Improvements 2,000,000
Deferred Maintenance 1,000,000
Energy Efficiency 1,000,000
Economic Sustainability 1,000,000
Open Purchase Orders Carried Over 2,328,070
Appropriation Approved by the City Council Previously 8,895,628 * Other Designations
Property Acquisition 1,000,000
General Plan Maintenance Fee 58,991
Negative Fund Balances - Other Governmental Funds 202,840 Total Assigned Fund Balance 20,990,019
Unassigned 4,139,702
Total General Fund Balance, June 30, 2023: $ 82,269,971 * See Table 8 for more details
Non-spendable Fund Balance
The City has nearly $27 million in long-term receivables/advances in the non-spendable form at the end of FY 2022-23.

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Reserved/Committed Fund Balance
The City Council adopted a risk-based General Fund Policy, which increased the General Fund’s Reserve from 25% to 50%. To meet the City’s Reserve Policy target of 50% of the General Fund revenues, $28,903,778 was designated as the Reserved/Committed General Fund Balance as of June 30, 2023.

Restricted Fund Balance
At the end of FY 2022-23, the majority of the balance was due to the PARS Section 115 account’s balance of $1,288,720, which was restricted for the Pension contribution.

Assigned/Designated Fund Balance
Assigned funds describe the portion of the General Fund reserves that reflect the use of resources by the City Council intended to provide a means and source of funding for various near-term and long-term needs. For example, funds can be assigned to address long-term liabilities such as Other Post Employment Benefit (OPEB) unfunded liabilities and leave accrual liabilities. Funds can also be assigned to address equipment replacement needs as well as to set aside funding for unfunded/unprogrammed future capital and/or infrastructure projects.

Specifically, this reserve policy establishes assignments for the following short-term and long-term needs at the various levels specified:
• OPEB (Other Post Employment Benefit) Unfunded Liability • Leave Liability
• Equipment Replacement
• Self-insured Retention
• Bond Refinancing/Reserve
• Capital Improvement (Unfunded/Unprogrammed)
• Deferred Maintenance / Infrastructure Maintenance
• Energy Efficiency Projects
• Economic Sustainability
Other than the designations listed above, the assigned balance also included open purchase orders of $2,328,070, appropriations of $8,895,628 previously approved by the City Council, and a few items outlined below. These planned appropriations were not expensed by June 30, 2023, and carried over into FY 2023-24. A list of the Open Purchase Orders is attached (Enclosure 3), and a list of the appropriations approved by the City Council previously is included in Table 8 below.

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Table 8 – Appropriations Approved by the City Council Previously Appropriations Approved by the City Council Previously
City Council Date Description Balance as of
6/30/2023
1/11/2022 Automatic Plate Rater (Flock) System - $90K per FY for 5 FY Starting 7/1/2023 $ 340,000 4/12/2022 Economic Development Initiatives 1,535,000
4/12/2022 Teen Center Design 200,000
4/12/2022 ADA Implementation Coordinator 100,000
4/12/2022 City Hall Council Chambers & Media Division System Upgrades (CIP. 50074) 340,000 4/12/2022 Whittier Boulevard Specific Plan (Project # 4687) 19,995 4/12/2022 Low-Income Youth Sports Subsidy Program (Pico Rivera Playpass) 4,300 5/9/2023 Smith Park Aquatic Center 6,000,000
10/10/2023 Smith Park Aquatic Center (161,789)
6/13/2023 Summer Street Fest - for two additional days 184,143 6/13/2023 Fiestas Patrias 136,238
6/13/2023 Movies in the Park - for two additional movies 13,775 9/26/2023 Senior Center Restrooms Ada Improvement Project (CIP No. 50036) 22,177 10/10/2023 Teen Center Renovation Construction Project 161,789 Total Appropriations Approved by the City Council Previously $ 8,895,628 Assigned Fund Balance – Other Designations
• Property Acquisition – The City intends to designate $1 million for future strategic real estate acquisitions, which includes the net proceeds of $415,910 generated from real estate property transactions in FY 2022-23.
• General Plan Maintenance Fees – The City collects the fees from building, electrical, plumbing, and mechanical permit applicants. The City utilizes the fees to review and update the City’s Comprehensive General Plan, including statemandated revisions and matters initiated by the Planning Commission and City Council. The accumulative unspent balance of $58,991 will be transferred to the CED Strategic Goals Fund when General Plan expenses are incurred. • Negative Fund Balance – In reviewing the City’s other governmental funds, staff identified the need to transfer $202,840 of the General Fund Unassigned Balance to the Liability Claims Fund, Sewer Maintenance Fund, Federal Aid STPL5351 Fund, Highway Bridge Program Fund, and Miscellaneous Federal Grant Fund to reduce these funds’ negative balances.
• Liability Claims Fund (Fund 105) – In FY 2022-23, the City exceeded its budget for insurance claim payments by $43,677, resulting in a fund deficit of the same amount in the Liability Claims Fund as of June 30, 2023. To rectify this negative balance appropriately, staff recommends transferring $43,667 from the General Fund to the Liability Claims Fund. This transfer will not affect the net Unassigned CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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General Fund Balance, as both the General Fund and Liability Claims Fund are consolidated within a single fund in the ACFR.
• Sewer Maintenance Fund (Fund 225) - On August 25, 2015, the City Council approved granting jurisdiction to the County of Los Angeles (County) to include the City into a County sewer maintenance district. Since then, the County has collected the annual sewer fee revenues to maintain and improve the City’s sewer system while the City has received minimal revenues. The City incurred expenditures associated with the Master Plan for Water, Sewer, and Storm Drain in the Sewer Maintenance, resulting in a fund deficit of $20,380 as of June 30, 2023. Staff recommends transferring $20,380 from the General Fund to the Sewer Maintenance fund to eliminate the negative fund balance. • Federal Grant Funds - Some Federal Grant funds have negative balances as of June 30, 2023:
o Federal Aid STPL5351 (Fund 638) – The City incurred expenditures of $763,343 for the Whittier Blvd-Paramount Blvd to West City Limit Rehabilitation project (Capital Improvement Project (CIP) 21246) in Fund 638. The City submitted its final grant reimbursement request to Caltrans in December 2017 and received total reimbursements of $763,000, resulting in a fund deficit of $343.
o Highway Bridge Program (Fund 661) - In March 2022, staff inadvertently posted the federal grant reimbursement received for the Washington Blvd Bridge Over the Rio Hondo River (CIP 21285) project to the General Fund instead of the appropriate Highway Bridge Program Fund, resulting in a deficit of $1,836 in the Highway Bridge Program Fund.
o Miscellaneous Federal Grant (Fund 698) – The City incurred expenditures of $969,796 for the Paramount Blvd Raised Medians project (CIP 21272) in Fund 698. This included $44,326 in non-participating costs that were ineligible for grant reimbursement. Furthermore, the project’s federal grant reimbursement rate was 90% for eligible expenditures, resulting in an additional $92,288 in non-reimbursable costs. Therefore, a transfer of $136,614 is required to address the shortfall in Fund 698 for this CIP.

In summary, at the end of FY 2022-23, the total Assigned General Fund Balance was $20,990,019, resulting in an Unassigned General Fund Balance (Undesignated Reserve) of $4,139,702.

Since the conclusion of the FY 2022-23 audit in December 2023, the City Council has approved an additional appropriation, which resulted in a further modification to the General Fund unassigned fund balance (Table 9):

CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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Table 9 – Adjusted General Fund Unassigned Fund Balance Adjusted General Fund Unassigned Fund Balance
Date Description Amount
6/30/2023 General Fund Unassigned Fund Balance $ 4,139,702 12/12/2023 City Council Compensation Adjustments Pursuant to SB 329 50,000 Adjusted General Fund Unassigned Fund Balance $ 4,089,702 Following is a set of recommendations to address emerging issues that staff is requesting to fund with the $4,089,702 in Unassigned (Undesignated) Fund Balance:
• Vehicle and Equipment Replacement for Public Works - $1,089,702 The City is responsible for the preventative maintenance, repair, acquisition, and replacement of City vehicles and equipment to provide vital services to the community and accomplish operational goals and purposes safely and effectively.

The City strives to maintain the fleet at a sufficient level to minimize future repair and maintenance costs. The timely replacement of vehicles and related equipment avoids frequent unplanned operation interruptions. The Public Works Department has identified the immediate need to replace nine (9) vehicles and equipment. Staff recommends allocating $1,089,702 to replace the needed vehicles and equipment to prevent substantial delays and increase efficiencies in daily operations. • Smith Park Stadium Turf Replacement - $1,300,000
Smith Park is considered a community-wide park providing competitive football, softball, baseball, and soccer fields along with other park uses. In 2013, the City replaced the natural turf at Smith Park Stadium with artificial materials. The reason for the replacement was ongoing problems including failure of the natural turf leading to large and deep bare patches. The warranty for the current artificial material is eight (8) years. With 11 years of use, the material has exceeded its expected lifespan and is in need of replacement. For many years, the field served as the community’s only all-weather field allowing play in all conditions. • Revenue Replacement Designation – Measure AB Revenue/Taxpayer Protection and Accountability Act - $1,700,000
As mentioned previously, the Measure AB Ballot Initiative was implemented subsequent to the 2022 elections. The intent was to restructure the Business License fee schedule and update the fee rates across the various segments of the business sector in the community. As of the date of this writing, and as will be communicated to the City Council in the FY 2023-24 Midyear Review Agenda Report, the revenues collected through December 31, 2023, are coming in lower than expected. Based on our review and inquiry of our Business License Tax consultants, HdL, it appears that this revenue source will come in about $2.1 below expected projections. Due to this expected shortfall, staff recommends designating these monies towards the FY 2023-24 General Fund budget. This would ensure the CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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continuance of planned services, ongoing projects, and most importantly, it would ensure that planned infrastructure projects remain in motion.

Additionally, the Taxpayer Protection and Government Accountability Act would amend the California Constitution with provisions that limit voters’ authority and input, adopt new and stricter rules for raising taxes and fees, and may make it more difficult to impose fines and penalties for violation of state and local laws. The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts. The measure would significantly negatively impact the City’s operations and core service delivery.

The initiative includes provisions that would retroactively void all state and local taxes or fees adopted after January 1, 2022, if they did not align with the provisions of this initiative. For the City, this would mean the possible loss of the additional revenues from the voter-approved Measure AB Business License Tax passed by the voters in November 2022. At that time, we will know the results of this act.

Should the City Council approve the designation of the recommendations, the Adjusted Unassigned/Undesignated Fund Balance is as follows:

Adjusted General Fund Unassigned Fund Balance
Date Description Amount
6/30/2023 General Fund Unassigned Fund Balance $ 4,089,702 Smith Park Turf Replacement 1,300,000
Equipment Replacement - Vehicle Purchases 1,089,702
Revenue Replacement Designation (TPA/Measure AB) 1,700,000 Adjusted General Fund Unassigned Fund Balance $ -
Enterprise Funds (Proprietary Funds) Year-End Results
Proprietary funds use the accrual basis of accounting, which is the same method used by private businesses. Proprietary funds can be classified as either "enterprise funds" or "internal service funds". The City has four (4) enterprise funds: the Water Enterprise Fund (550), the Golf Course Fund (570), the Sports Arena Fund (590), and the Pico Rivera Innovative Municipal Energy (PRIME) Fund (560). Table 10 reflects the Enterprise Fund balances as discussed below.

Table 10 – Enterprise Funds Year-End Results
Net Assets / Fund
Water
Operations P.R.I.M.E Golf Course Sports Arena
Revenue $ 10,989,386 $ 24,006,009 $ 755,542 $ 318,378
Expenses $ 7,000,116 $ 18,935,357 $ 1,420,585 $ (2,795) Changes in Net Assets $ 6,376,831 $ 5,454,197 $ (665,043) $ 333,502 Beginning Fund Balance $ 33,378,487 $ 4,930,134 $ (2,939,359) $ 368,010 Ending Fund Balance $ 39,755,318 $ 10,384,331 $ (3,604,402) $ 701,512 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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There are four (4) major funds in the enterprise fund group, the Water Operations Enterprise fund, the PRIME fund, the Golf Course fund, and the Sports Arena fund which are discussed below.

Water Operations Enterprise Fund
The Water Operations Enterprise Fund accounts for the operation and maintenance of the City's water treatment, water transmission, and distribution system. During the year, $10.98 million was received from charges for services, and the operating expenses were $7.00 million. The non-operating revenues and expenses included $274 thousand in investment income and $2.52 million in grants from the Water Replenishment District for the Per-and Polyfluorinated Substances (PFAS) Treatment. The Water Fund's net position increased by $6.38 million from the prior year to $39.76 million. Revenues exceeded expenses, mainly due to continuing appropriations for programs and projects that were in progress and expected to be completed in FY 2023-24.

Pico Rivera Innovative Municipal Energy (PRIME) Fund
The City established a Community Choice Aggregation (CCA) operation. PRIME is operated as a modified Joint Powers Authority (JPA), with the City of Lancaster as the lead agency of the JPA. CCAs operate such that power purchase and rate-setting authority is exercised locally. Southern California Edison (SCE) still provides transmission of all electricity as well as billing. However, PRIME utilizes third-party consultants to purchase power and answer billing inquiries from Pico Rivera residents.

The benefit of “greener” energy is that the overhead is lower, and those cost savings have been passed on to residential and commercial customers. The changes in market conditions for the cost of power and related power products have made it difficult to project the ever-changing fluctuations in the energy market.

During the year, operating revenues received were $24 million, and operating expenses were $18.94 million. In FY 2022-23, the price and usage of energy have seen unanticipated increases, driven by the heat waves during the summer months and low water levels affecting the hydroelectric power supply. In response to the unpredictable weather changes, the PRIME Fund implemented a rate increase approved by the City Council in February 2023. In FY 2022-23, many CCAs across the state adopted rate hikes to stay competitive in pricing, particularly in light of escalating rates from InvestorOwned Utilities such as SCE. While the unpredictability of weather and future energy prices is a continuing theme, FY 2022-23 net assets increased by about $5.45 million, mostly due to the City’s continued attention to proactively setting rates and proactively procuring clean energy contracts.

Golf Course Fund
During FY 2022-23, the Pico Rivera Golf Course faced reduced demand for golf activities as patrons had access to various other recreational options following the lifting of pandemic restrictions. Moreover, the closure of the driving range by the U.S. Army Corps of Engineers (USACE) further contributed to decreased revenue. On the flip CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2023, AND FISCAL YEAR 2022-23 GENERAL FUND YEAR-END RESULTS

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side, the Golf Course saw an uptick in expenses, primarily driven by the costs associated with Contracted Services for management, maintenance of the buildings and grounds, and the utilities required for the restaurant, banquet facility rentals, and grounds maintenance. As a result of these factors, there was a net operating loss of $665 thousand.

Sports Arena Fund
The Pico Rivera Sports Arena experienced a resurgence in its activities, returning to pre-pandemic levels for rentals and events. This increased operational capacity led to revenues surpassing expenditures, with a higher number of events taking place in the outdoor venue. Consequently, the Sports Arena achieved a net income of $334,000.

Conclusion:

This year-end report presents an overview of the City's General Fund operating revenues and expenditures for FY 2022-23. Staff recommends that the City Council receive and file the report. Staff also recommends the City Council approve budget transfers of $202,840 out of the General Fund Unassigned Balance to reduce the negative balances for the Liability Claims Fund, the Sewer Maintenance Fund, the Federal Aid STPL45351 Fund, the Highway Bridget Program Fund, and the Miscellaneous Federal Grant Fund. Lastly, staff’s recommendation is to allocate the remaining General Fund Unassigned Balance of $4,089,702 towards Vehicle/Equipment Replacement, Smith Park Turf Replacement, and the Measure AB Revenue Replacement.

Staff will continue to monitor each revenue source and expenditure activity closely and will evaluate opportunities to enhance revenues and reduce expenditures.

Steve Carmona
SC:AG:JG:MS:DS:ep
Enclosures: 1) Annual Comprehensive Financial Report (ACFR), Year Ending June 30, 2023
2) City of Pico Rivera End of the Year Accomplishments Report, FY 2022- 23 3) General Fund Purchase Orders Rolled over to FY 2023-24 Fiscal Year Ended June 30, 2023

PICO RIVERA ACFR

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
2023
City of
California
Enclosure 1
16a
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CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL i
CITY OFFICIALS xiv
ORGANIZATIONAL CHART xv

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN
FINANCIAL REPORTING xvi

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

FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 18
STATEMENT OF ACTIVITIES 19

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
DESCRIPTION OF MAJOR FUNDS 21
BALANCE SHEET 22

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION 24

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 25

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES 27

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 28

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 29
STATEMENT OF CASH FLOWS 30

FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND 32
STATEMENT OF FIDUCIARY NET POSITION 33
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 34
NOTES TO FINANCIAL STATEMENTS 35

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN 84
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 85

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – COUNCIL PLAN 86
SCHEDULE OF CONTRIBUTIONS – COUNCIL PLAN 87

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS 88
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN 89

BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 90
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND 91
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND 92
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 93

SUPPLEMENTARY INFORMATION

OTHER GOVERNMENTAL FUNDS
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 94
COMBINING BALANCE SHEET 96

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 102

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL
REVENUE FUND 108
STATE GAS TAX SPECIAL REVENUE FUND 109
LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND 110
PROP A SPECIAL REVENUE FUND 111
PROP C SPECIAL REVENUE FUND 112
MEASURE R SPECIAL REVENUE FUND 113
MEASURE M SPECIAL REVENUE FUND 114
HOME GRANT SPECIAL REVENUE FUND 115
CALHOME GRANT SPECIAL REVENUE FUND 116
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 117

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
COUNTY GRANTS SPECIAL REVENUE FUND 118
STATE GRANTS SPECIAL REVENUE FUND 119
ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND 120
IMAGE ENHANCEMENT SPECIAL REVENUE FUND 121
SEWER MAINTENANCE SPECIAL REVENUE FUND 122
REACH GRANTS SPECIAL REVENUE FUND 123
CABLE/PEG SUPPORT SPECIAL REVENUE FUND 124
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND 125 MEASURE W SPECIAL REVENUE FUND 126
FEDERAL GRANTS SPECIAL REVENUE FUND 127
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND 128

PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT
CAPITAL PROJECTS FUND 129

OTHER ENTERPRISE FUNDS
DESCRIPTION OF OTHER ENTERPRISE FUNDS 130
COMBINING STATEMENT OF NET POSITION 131

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 132
COMBINING STATEMENT OF CASH FLOWS 133

STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL SECTION CONTENTS 134

FINANCIAL TRENDS
NET POSITION BY COMPONENT – LAST TEN FISCAL YEARS 135
CHANGE IN NET POSITION – LAST TEN FISCAL YEARS 137
FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN
FISCAL YEARS 141
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS – LAST TEN FISCAL YEARS 143

REVENUE CAPACITY
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE – LAST TEN FISCAL YEARS 145
REVENUE BASE BY CATEGORY – LAST TEN FISCAL YEARS 147
PROPERTY TAX LEVIES AND TAX COLLECTIONS – LAST TEN
FISCAL YEARS 148

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2023
DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES – LAST TEN YEARS 149
PRINCIPAL PROPERTY TAXPAYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 151
TOP 25 SALES TAX PRODUCERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 152

DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE – LAST TEN FISCAL YEARS 153 RATIOS OF GENERAL BONDED DEBT OUTSTANDING – LAST TEN
FISCAL YEARS 154
DIRECT AND OVERLAPPING DEBT 155
LEGAL DEBT MARGIN INFORMATION – LAST TEN FISCAL YEARS 156

PLEDGED REVENUE BOND COVERAGE
1999 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 158 2001 WATER AUTHORITY REVENUE BONDS – LAST TEN FISCAL YEARS 158 2016 LEASE REVENUE BONDS 158
2018 CERTIFICATES OF PARTICIPATION 158

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS – LAST TEN FISCAL YEARS 159 PRINCIPAL EMPLOYERS – CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO 160

OPERATING INFORMATION
FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION – LAST TEN FISCAL YEARS 161
OPERATING INDICATORS BY FUNCTION – LAST TEN FISCAL YEARS 162 CAPITAL ASSET STATISTICS BY FUNCTION – LAST TEN FISCAL YEARS 164

INTRODUCTORY SECTION
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Jane Guo
Director
City of Pico Rivera

ADMINISTRATIVE SERVICES
6615 Passons Boulevard ∙ Pico Rivera, California 90660
(562) 801-4336
Web: www.pico-rivera.org e-mail: [email protected]
City Council
Erik Lutz
Mayor
Andrew C. Lara
Mayor Pro Tem
Gustavo V. Camacho
Councilmember
John R. Garcia
Councilmember
Dr. Monica Sanchez
Councilmember
December 1, 2023
Honorable Mayor and City Council
City of Pico Rivera, California
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Honorable Mayor and City Councilmembers:

I am pleased to present the Annual Comprehensive Financial Report of the City of Pico Rivera for the fiscal year ended June 30, 2023, as mandated by both local ordinances and state statutes. These ordinances and statutes require that the City of Pico Rivera (City) issue annually a report on its financial position and activity, and that an independent firm of certified public accountants audit this report. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City.

To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the various funds and component units of the City. In addition, to the best of our knowledge, there are no untrue statements of material fact within the financial statements or omissions of material fact to cause the financial statements to be misleading. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.

The Annual Comprehensive Financial Report (ACFR) is prepared using the guidelines set forth by the Government Accounting Standards Board (GASB) and audited by CliftonLarsonAllen LLP (CLA), Certified Public Accountants & Consultants. For the year ended June 30, 2023, these financial statements received an unmodified opinion by CLA.

Their opinion is located at the beginning of the financial section of this report.

Management's Discussion and Analysis (MD&A) immediately follows the independent auditors' report and provides a narrative overview and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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City of Pico Rivera Profile
The City of Pico Rivera is a thriving community that offers opportunities to all who live, work, and visit. Situated on the eastern edge of the Los Angeles basin and the southern edge of the area known as the San Gabriel Valley, Pico Rivera is approximately 13 miles southeast of downtown Los Angeles, with a population of 60,000. Formed through the merging of two historic communities, Pico and Rivera, the City was officially incorporated in January 1958 as the 61st general law city in Los Angeles County. Originally an agricultural area, the community evolved into a residential and industrial area following the end of World War II. Within the City’s nine square miles, more than 120 acres are devoted to recreational uses, including just under 100 acres of local parks.

The City of Pico Rivera is a general law city and operates under the Council-Manager form of government whereby the City Council provides policy direction to a City Manager appointed by the Council. As the City’s chief administrator, the City Manager is responsible for overseeing City employees who implement all City's programs, services, and projects. Five (5) City Council members are elected, at large, for staggered four-year terms. The Council members select two (2) of the members to serve as Mayor and Mayor Pro Tem.

The City provides a full range of municipal services, including public works, water, construction and maintenance of roads and highways, planning and zoning, recreation and cultural activities, and general administrative support such as overall agency management, procurement of goods and services, payroll, recruitment, risk management budget preparation and monitoring, and accounting. The City contracts some municipal services with other public agencies, these include the Los Angeles County Sheriff's Department for law enforcement service, the Los Angeles County Fire Department for fire protection and paramedic emergency services, and the Los Angeles County Library System to operate its two (2) community libraries.

The Annual Comprehensive Financial Report presents the financial status of the City and its component units. Although each component unit is a separate legal entity from the City, their respective financial operations are closely related. This combined presentation better represents the financial activities of the City of Pico Rivera as a whole.

The following component units are reported on a blended basis as part of the primary government because their boards are comprised of all City Council members, or they are, in substance, part of the City’s operations:
▪ Pico Rivera Water Authority
▪ Pico Rivera Housing Assistance Agency
▪ Pico Rivera Public Financing Authority
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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FINANCIAL INFORMATION
Budgetary Controls
The City of Pico Rivera maintains strict budgetary controls, with the objective of ensuring compliance with legal provisions contained in the annual appropriated budgets approved by the City Council and the Water Authority. Activities of the General fund, Special Revenue, Enterprise, and Capital Projects funds are included in the annual appropriated budgets of the government units. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department/function level within each fund. Formal budgetary integration is employed as a management control device.

Budgetary controls from the Adopted Budget Resolution No. 7289 were formally adopted by the City Council on June 27, 2023, that include controls such as Department Directors authorized to move appropriations from one object to another, within each budgetary program/division and within the same fund, provided that the total approved appropriations for a budget program and within the same fund are not exceeded.

The City also maintains an encumbrance accounting system as one method of maintaining budgetary control. These encumbrances lapse at year-end, and any unexpended balance is eligible to be carried over to the following year's budget appropriations with City Council approval of the Adopted Budget Resolution. As adopted in the resolution, all encumbrances remaining as of June 30, 2023, after thorough review by appropriate Administrative Services Department staff, will either be released or re-appropriated for use in Fiscal Year (FY) 2023- 24, as appropriate, in the respective funds, departments, programs, and accounts/objects.

Reserves and Fund Balance Policy
In an effort to further secure the City’s long-term financial health, the City Council first adopted comprehensive reserve policies as part of the FY 2016-17 budget adoption process. These policies solidified the City’s commitment to setting aside funds for economic uncertainty while expanding the policy to allow for assignments of fund balance for capital projects, equipment replacement, leave accruals, and other expenses.

The policies were further refined and adopted by the City Council as part of the FY 2021-22 budget process. On July 28, 2020, the Pico Rivera City Council adopted revised “risk-based” General Fund and Proprietary Fund Reserve Policies, which increased the General Fund’s Emergencies/Economic Stabilization Reserve from 25 percent to 50 percent. The revised policy also set certain triggers to allow staff and the City Council to reassess budgeted service levels during economic downturns to ensure ongoing economic stability. The full set of policies is included as an appendix to the FY 2023-24 Budget.

The City strives to be well-positioned to weather potential economic downturns, natural disasters, or other calamities that might impinge upon operating revenue. The City’s reserves, as governed by the adopted reserve policies, have been classified in an effort to address any number of one-time uses. Future budgets will address these reserves, seeking to further strengthen the City’s economic health by setting aside additional fund balance for anticipated SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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uses (i.e., addressing long-term unfunded liabilities).

Internal Control
The Administrative Services Department of the City is responsible for establishing and maintaining an appropriate internal control structure. The internal control system is designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met.

The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.

Significant Financial Events
There were no changes to financial policies that resulted in a significant impact on the June 30, 2023, financial statements.

Long-term Financial Planning
The City utilizes two (2) long-term planning tools that serve as a guide to best allocate resources to meet the City’s needs over time. The first of which is the Five-Year Capital Improvement Program (CIP), which provides efficient and effective delivery of resources for the improvement and maintenance of public infrastructure and facilities. The Five-Year Capital Improvement Plan is updated annually during the budget process.

The second long-term planning tool is the City’s Five-Year Financial Forecast (Forecast). The Forecast establishes the foundation for guiding policy and making financial decisions, taking into account any forecasted challenges and opportunities before they arise. This Forecast allows for creating baseline and alternative revenue and spending forecasts, including historical and projected annual periods for the next five (5) years. The Forecast also allows for testing the impact of assumptions and proposed initiatives on projected budget gaps and fund balances.

Significant City Accomplishments and Initiatives
The City of Pico Rivera is exceptionally well positioned to meet current and future challenges facing local government and our community. These accomplishments signify the City’s commitment to working together in a collaborative manner for the betterment of the greater community. These accomplishments and many more demonstrate our diligence and commitment to implementing our strategic priorities and ensuring the City’s economic prosperity and bettering the lives of our citizens and businesses. The City’s performance goals, priorities, and strategies focus on the following areas:
▪ Fiscal and Organization Sustainability
▪ Economic Development and Land Use
▪ Infrastructure
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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▪ Health, Wellness and Safety
▪ Community Engagement
Fiscal and Organizational Sustainability Accomplishments Administration
 Successfully placed Measure AB on the ballot, and in November 2022, voters overwhelmingly approved it with a 75% approval.
 Conducted the City's General Municipal Election that included two (2) approved Measures
 Held the City’s annual City Council Goal setting retreat  Updated the City's Biennial Conflict-of-Interest Code  Implemented an Online Records Center Public Portal and Public Records Request Automation Process
 Successfully adopted the City’s first Legislative Platform  Successfully led an advocacy trip to Sacramento, CA, for the California Contract Cities Conference, where City Council members and staff met with Assemblymembers Lisa Calderon and Senators Lena Gonzalez and Bob Archuleta
 Successfully led an advocacy trip to Washington DC where City Council members and staff met with US Congressional Representatives Judy Chu (D28), Grace Napolitano (D31), Linda Sanchez (D38), Robert Garcia (D42), Nanette Barragan (D44); US Senator Alex Padilla and the Office of the late Senator Feinstein; the US Departments of Transportation and Economic Development Administration; and President Biden’s Infrastructure Team
Administrative Services
 Completed the FY 2021-22 Accomplishments Publication Book  Published the "Budget-in-Brief" document, which provides the community with a summary of the City's Annual Budget, Priorities, and Accomplishments  Received GFOA Award for Excellence in Financial Report for the 2022 Annual Comprehensive Financial Report (ACFR)
 Received GFOA Award for Distinguished Budget Presentation for Year 2 of the FY 2021-23 Biennial Budget
 Implemented industry "Best Practices":
o Updated the Investment Policy
o Updated Capital Asset Capitalization Policy
 Implemented TravelBank Apps to track and reconcile credit card transactions seamlessly online.
 Presented a balanced Biennial Budget for FY 2023-25
 Upgraded Virtual City Hall - 3Di Systems with VCH 311 platform to actively engage citizens with the City to maintain a clean & safe community  Upgraded new City Phone system from a legacy on-premises system to a modern voice-over IP Cloud system
 Upgraded new Email system (Office 365) from Exchange 2007  Implemented IT Standardization of documentation and remote tools, including IT Glue SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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for the centralized documentation platform and Pulseway for the remote monitoring and management platform
 Implemented Cyber Security Measures for Ransomware Protection, Cloud Antivirus, Multi-Factor Authentication (MFA), and Penetration Testing  Enhanced Threat ZERO prevention-based platform for identifying and managing the presence of compromises & sophisticated threat actors
 Upgraded Internet Redundancy of Failover Internet line to prevent ISP-Related service interruptions
Human Resources
 Successfully recruited for all executive positions.
 Completed CEA, SEIU, and SEIU Directors Labor Negotiations  Rolled out Phase One of Supervisory/Management/Leadership Training  Successfully received and reviewed 2,298 employment applications  Provided New Hire Orientations to 19 full-time employees and 33 part-time employees  Successfully facilitated and certified 17 full-time and 53 part-time interviews from eligibility list
 Implemented new training platform, Vector Solutions
 Successfully renewed all lines of insurance for FY 2023-24  Recertified Heat Stress, CPR, and Mandated Reporter Trainings Economic Development and Land Use Accomplishments
 Initiated a partnership with the Rivers & Mountains Conservancy, City of Montebello, and the Los Angeles County Department of Public Works to explore, plan, and implement passive recreation facilities at Rio Hondo Coastal Basin Spreading Grounds
 Executed a Memorandum of Understanding with Landify to plan, design, and develop new parks, open spaces, trails, and recreational facilities at Ruben Salazar High School and other suitable sites throughout the City
 Collaborated with ERUSD to pursue and secure public and private funding opportunities for the renovation of Ruben Salazar High School  Processed a Specific Plan and Conditional Use Permit for the Mercury Mixed Unit Housing Development for a 6-story 255-unit mixed-use project at 8255 Washington Boulevard
 Processed a Conditional Use Permit application for a 350,000-square-foot warehouse development on a 19-acre site for Insite Warehouse Development  Entitled the development of a 70,000-square-foot office building for training and development at the Southern California Gas Company Office Building headquarters located at 8101 Rosemead Boulevard
 Entitled a 1,030-square-foot Starbucks location at the former Tamarack Inn at 9257 Slauson Avenue
 Processed a Conditional Use Permit for the development of a 45-unit townhome development located at 4820 Durfee Avenue
 Entitled a 4-story modern architectural-style Public Storage facility on a site that had SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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been vacant for 42 years
 Issued grants of up to $10,000 to 14 additional businesses, successfully concluding the COVID-19 impact relief program for small businesses  Completed 3 home rehabilitation projects in partnership with Habitat for Humanity for low- and moderate-income households
 Sold an underutilized street portion on Baybar Road and generated $1 million for City coffers
 Disposed of a 5,000-square-foot former Redevelopment Agency site located at 8631 Beverly Boulevard in the amount of $180,000
 Disposed of a 1,144 square-foot underutilized former Redevelopment Agency parcel located on the northwest corner of Paramount Boulevard and Beverly Boulevard.  Acquired a 5,000-square-foot site located at 9201 Whittier Boulevard in a parking deficient area for the development of additional parking spaces  Acquired a vacant Veterans of Foreign Wars post located at 4865 Durfee Avenue. The 9,000-square-foot lot will allow the City to develop additional parking for local businesses, including the American Legion
 Acquired the former Montebello Bus Lines and Metro terminal at the southwest corner of Passons Boulevard and Jackson Street. The 20,000-square-foot lot will be developed into the future Passons Active Depot park
 Submitted a two-part federal request to US Senator Padilla and the late Senator Feinstein for the FY 24 Water Resources Development Act to address the impacts of the Whittier Narrows Dam Safet Modification Project
Infrastructure Accomplishments
● Submitted the following:
o A grant proposal to the US Economic Development Administration in the amount of $597,400 for the Southeast LA Micro EV Tech Hub and Pico Rivera Nucleus
o A grant proposal to the California Regional Trails Program in the amount of $1.4 million for the Pio Pico State Historic Park Trail Connection Project o A FY24 California State Budget Request with Assemblymember Lisa Calderon in the amount of $1.125 million for the Historic Whittier Boulevard Paseo Project o A grant with the Rivers and Mountains Conservancy through Prop 1 in the amount of $1.1 million for the Historic Whittier Boulevard Los Paseos Project o A Caltrans Clean CA Local Grant in the amount of $3.5 million for the Historic Whittier Boulevard Los Paseos Project
● Received awards for the following:
o A Caltrans Sustainable Community Planning Grant in the amount of $585,334 for the Rosemead/Lakewood Boulevard Complete Corridor Project o A FY24 California State Budget Request with Assemblymember Lisa Calderon in the amount of $1.125 million for the Alebrije Dog Park o A $1,050,000 million dollar grant for The PAD project from Congresswoman Linda Sánchez
o A New Mini-Pitch from National Recreation and Parks Association (NRPA) SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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valued at $100,000
o A Congressional Community Funding Request through Congresswoman Linda Sánchez in the amount of $1.5 million for the Historic Whittier Boulevard Los Paseos Project
● Began design phase of the following capital improvement projects:
o Alebrije Dog Park
o Youth Center Renovation
o Rio Hondo Park Renovation
o Utility Box Art Program
o Pico Park Outdoor Restrooms
● Developed a new design for the Smith Park Aquatic Center ● Upgraded the following:
o LED Lighting at Rivera Park Gym and Multi-purpose Room o HVAC unit for the Rivera Park Multi-purpose Room
o Suppression System for Pico Park Kitchen
o HVAC Compressor at City Hall
● Completed the following capital improvement projects:
o City Hall and City Hall West ADA Improvements
o Senior Center ADA Parking Lot Renovation
o Beverly and San Gabriel River Parkway Median Improvements o Whittier Blvd Overlay
o Whittier Blvd Landscape Median Improvements
o Rosemead Blvd and Beverly Blvd Hot Spot and Block Wall at Lindell o Highway Safety Improvement Program (HSIP) Cycle 7 Traffic Signal Upgrades o Highway Safety Improvement Program (HSIP) Cycle 8 Traffic Signal Upgrades o Citywide Resurfacing Slurry and Cape Seal (2023)
o Rosemead Blvd North of Whittier Blvd Street Rehabilitation o Annual Signing and stripping
o Chip Seal/ARAM (Asphalt Rubber Aggregate Membrane) Street Rehabilitation o Overlay and Reconstruction of Streets
o Well Rehabilitation
o Electrical Switchboard Replacement at Plant No. 3
o Citywide Traffic Signal Upgrades
o Phase 1 of Smith Park Aquatic Renovation
o Design for Rosemead Blvd Median and Parkway Beautification o Design for Major Corridors, Median and Parkway Beautification o Design for Regional Bikeway Phase I - Mines Ave Improvements o Design for Senior Center Tenant Improvements
o Design for Youth Center Renovation
o Installation of new canopies for the outdoor area at the Senior Center o Remodeling of outdoor restrooms at the Golf Course
o Installation of new sewer lines for Clubhouse at Golf Course o Rebuilding of pumps in the Storm Water Lift Stations at Rosemead Blvd and SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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Rex Rd.
● Purchased three (3) new transportation vehicles. Two (2) vehicles for Recreation Transit and one for Dial-A-Ride
● Participated, presented, and was recognized by the Association of State Dam Safety Officials and the US Army Corps of Engineers for the City’s public outreach and engagement program regarding the Whitter Narrows Dam project ● Successfully secured the endorsement and support from US Senator Alex Padilla for the Rosemead/Lakewood Boulevard Complete Corridor Project ● Successfully established a partnership with the City of Long Beach to advance the Rosemead/Lakewood Boulevard Complete Corridor Project
● Successfully incorporated the Rosemead/Lakewood Boulevard Complete Corridor Project into SCAG’s Federal Transportation Improvement Program list of projects, therefore making the Project eligible for federal funding Health and Wellness & Safety Accomplishments
 Completed Vehicles Miles Traveled (VMT) Analysis
 Completed the Local Roadway Safety Plan
 Completed the Facilities Management Plan and Security System.  Upgraded rain gutters at the City Yard
 Officially joined the California Jobs First – Los Angeles Collaborative to fund, establish, and support the long-term viability of the South East LA Micro EV Tech Hub and Pico Rivera Nucleus
 In collaboration with the City’s Public Safety Ad Hoc Committee, completed the installation of 36 Automated License Plate Reader cameras by Flock Safety, a new and innovative program to improve ways of mitigating and solving crime using automated license plate recognition
 Increased PRIME energy generation rates to successfully meet the City’s reserve policy for PRIME to 50% while continuing to provide a 3% discount on energy compared to Southern California Edison’s rates
 Awarded an agreement to develop the City’s first-ever Climate Action Plan (CAP). A CAP is a comprehensive strategy that outlines measures and policies to mitigate climate change, aiming to reduce greenhouse gas emissions, adapt to climate change conditions, and foster a transition to a low-carbon economy  Celebrated five years of PRIME operations with $1 million in cumulative savings since its inception
 Maintained an approximate 94% PRIME customer retention rate  Completed converting and installing 428 LED lights, bringing the total converted LED lights to 3,341, generating 1.8 million kWh in energy savings, or $567,000 in annual cost savings
 Increased OhmConnect registrations with 63 new active participants for FY 2022-23.

OhmConnect is a platform that enables and incentivizes residents to participate in energy-saving activities, especially during summer heat events, to help prevent energy blackouts
 Collaborated with the Southern California Association of Governments (SCAG) and completed a study to determine the need for Electric Vehicle (EV) Charging Stations SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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in the City in anticipation of the State's target to have 5 million zero-emission vehicles on the road by 2030. The study identified a need for 1,856 EV charging stations in the City by 2030
 Received the 2022 Gateway Cities Council of Governments Energy Action Award – Gold. The awards are divided into four tiers, no award, bronze, silver, and gold (the most prestigious award), to recognize cities in their efforts and participation in energy efficiency and climate initiatives
 Distributed organic waste bins to all eligible commercial accounts, reaching 100% compliance with SB 1383 State mandates
 Successfully incorporated legislative language into the State Climate Resiliency Bond, prioritizing communities impacted by climate disasters or by projects mitigating disasters, such as dams for park funding
 Submitted over 20 letters to the State Legislature expressing the City’s position for the record on various issues, including zoning, local control, climate resilience, and public safety
 Successfully partnered with Beverly Hospital to offer Wellness Classes and Health Screenings at the Senior Center
 Assisted 93 households in collaboration with the Southern California Housing Rights Center, delivering fair housing services, including discrimination prevention, referrals, case management, and resolution of landlord-tenant disputes  Resolved 810 code enforcement cases generated on a complaint basis  Successfully introduced a City Ordinance prohibiting participation in and speculation of illegal street takeovers
 The City Council recognized the importance of public safety and the need for effective coordination between law enforcement agencies and community stakeholders. To enhance this coordination, the City Council launched a pilot program in February 2023 that added a Public Safety Coordinator position in the City Community Engagement Accomplishments
● Opened the Roldan Mini-Pitch and established a public/private partnership with the Roldan Family
● Developed PlayPASS subsidy program. The program will subsidize the registration fee for income-eligible youth to be able to participate in recreational youth sports programs, and over 50 participants were awarded assistance ● Awarded a $20,000 grant from the National Recreation and Parks Association (NRPA) towards the PlayPASS program
● Served over 12,500 meals for the Summer Food Service Program ● Secured $450,000 in grant funding towards the Outdoor Equity Program (OEP) from California State Parks that will offer new outdoor excursions and experiences to our community
● Successfully hosted thirteen (13) city-wide Special Events ● Successfully held six (6) Pool Days, in partnership with local cities, to ensure residents had access to aquatic programs, pending the Aquatic Center renovation ● Held the REACH program at eight (8) Elementary sites: Birney Tech Academy, Durfee Elementary, Magee Academy of Arts & Sciences, North Ranchito Elementary, Rio Vista Elementary, Rivera Elementary, South Ranchito Dual Language Academy, and SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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Valencia Academy of the Arts
● Successfully served approximately 482 students through the REACH program ● Resumed the Pico Rivera Senior Center Meal program
● Senior Clubs resumed Club meetings. A grand total of 200 seniors met regularly ● Opened the Veterans Resource Center at the Pico Rivera Senior Center ● Appointed over 130 Veterans Service Officers
● Appointed over 1,200 Case Workers
● Held the Ribbon Cutting ceremony to roll out the City's new Transportation/Dial-A-Ride program, "Pico Rivera Transit (PRT)". Over 160 Pico Rivera senior and disabled residents signed up for program
● Dial-A-Ride program provided over 11,000 trips and over 300 new participants ● Recreation Transit/Trips and Tours provided 23 excursions ● Issued 12 Profiles to the community for public information ● Successfully engaged and solicited input from over 5,000 people throughout phases 1 and 2 of the Historic Whittier Boulevard Specific Plan and Multimodal Plan, which will be used to develop initial concepts and recommendations for revitalizing “uptown” Pico Rivera
● Hosted city tours with Pico Rivera stakeholders and leaders to the City of Orange and Pasadena to explore, draw comparisons, and learn from best and experimental practices for creating vibrant mixed-use community and economic development districts
● Successfully partnered with El Rancho Unified School District to launch the Pico Rivera Youth Ambassador Program, engaging local high-school students with realworld city projects and exposing them to career paths in urban planning, civil engineering, architecture, public policy, public administration, and more ● Launched “The Boulevard Bulletin”: A quarterly newsletter distributed communitywide that provides updates on the Historic Whittier Boulevard Program ● Acquired and activated the Pico Rivera IDEA Lab to support the Whittier Boulevard Revitalization Program delivery and serve as the on-site project and student and youth engagement center
● Successfully adopted a resolution and applied with the Local Agency Formation Commission to initiate the establishment of the Lower San Gabriel River Recreation and Park District
● Held a successful Clean California Bulky Item Dump Day Event in partnership with Caltrans.
● Distributed meals to 378 senior citizens through the Southeast Area Social Services Funding Authority’s (SASSFA) congregate nutritional program in Pico Rivera, targeting vulnerable individuals aged 60 and above to prevent premature institutionalization ● Awards Received:
o “Photography Award of Distinction” from California Association of Public Information Officials (CAPIO).
o “Best of the Best" award for Pico Rivera Transit Graphic Design - Print from California Association of Public Information Officials (CAPIO). o “Epic Award” for Pico Rivera Transit Graphic Design from the California Association of Public Information Officials (CAPIO)
o “Rebrand Award of Distinction” for Pico Rivera Transit from the California Association of Public Information Officials (CAPIO)
o 1st place “Award in Excellence in Marketing” for the Pico Rivera Transit Dial-A- SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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Ride program from the California Association of Coordinated Transportation (CalAct)
o “Award of Excellence” recipient for Pico Park Roldan Mini-Pitch in the “Excellence in Design Park Planning” Category from California Parks & Recreation Society (CPRS)
o 2022 CAPIO EPIC Award in Graphic Design – Online category for 2021’s Community Bike Ride. The project also received 1 of the 3 “Best in Show Award” for all statewide entries
The City of Pico Rivera will continue working on developing future financial plans that achieve an optimal level of service to the community through efficient, effective, and innovative strategies. In order to improve productivity and efficiency, our goal is not only to ensure financial sustainability but also to strive to strategically position the City to execute its 21st Century Vision of a sustainable, equitable, and vibrant community to live, work, and visit.

Economic Condition and Outlook
As can be seen in the MD&A, the City’s financial condition is sound. The General Fund did see operating revenues exceed operating expenditures by $8.65 million as of June 30, 2023.

The total fund balance grew by $9.048 million to $82.270 million – an amount that represents 146% of operating revenue. Further details of these and related financial statistics can be found in the MD&A and the Notes sections on the following pages.

The relative health of the City’s finances can be attributed to five (5) successive fiscal years of focused attention on improving the alignment of ongoing expenditures with ongoing revenues. While the City has enjoyed positive financial health in the recent past, it is essential to implement all available measures to safeguard against potential economic downturns that could impinge upon the City’s primary revenue sources: sales, property, and business license tax. Given the ongoing national economic challenges, including continuing inflation, constrained supply in the goods, services, and labor markets, more stringent Federal monetary policies, and market volatility, the City must proactively enhance revenues and improve operational efficiency to prevent impact from future slowdowns in the economy.

For this reason, it is important that the City continues to develop responsible budgets that provide essential services to our residents and fulfill City Council priorities. The efforts to focus on the City’s fiscal health will continue as subsequent budgets are developed, with an emphasis on maintaining and ensuring financial sustainability and security.

OTHER INFORMATION
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Pico Rivera for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2023

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30, 2022. This was the 25th consecutive year that the City had achieved this prestigious award. To be awarded a Certificate of Achievement, a government entity must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one (1) year. We believe that our ACFR for FY 2022-23 continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate, just one more way to celebrate the City’s glorious past and prosperous future.

Independent Audit
The City requires an annual audit by independent certified public accountants. The accounting firm of CLA conducted this year's audit. The auditors' report on the governmentwide financial statements and combining individual fund statements and schedules is included in the financial section of this report.

Single Audit
As a recipient of federal, state, and county financial assistance, the City is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management. In years when over $750,000 is expended on Federal financial assistance programs, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and the Uniform Guidance. Results of the Single Audit are reported separately and will be available by March 2024.

Acknowledgments
The Administrative Services Department takes primary responsibility for the preparation and accuracy of this report. The professionalism, commitment, and effort of all the members of the Department have made this presentation possible. The assistance from other departments in providing operational information for this report is also appreciated. Finally, we thank the City Council for their prudent financial management and leadership in guiding the City of Pico Rivera and helping ensure the City’s continued financial health.

Respectfully,
Jane Guo
Director of Administrative Services
(xiv)

CITY OF PICO RIVERA

CITY OFFICIALS
City Council
Erik Lutz, Mayor
Andrew C. Lara, Mayor Pro Tem
Gustavo V. Camacho, Councilmember
John R. Garcia, Councilmember
Dr. Monica Sánchez, Councilmember
Executive Team
City Manager Steve Carmona
Assistant City Manager Angelina Garcia
City Clerk Vacant
Director of Administrative Services Jane Guo
Director of Community and Economic Development Alvaro Betancourt Director of Human Resources Karine Shirinian
Director of Innovation and Communications Javier Hernandez Director of Parks and Recreation Pamela Yugar
Director of Public Works Noe Negrete
Residents of Pico Rivera
City Attorney
Arnold M. Alvarez-Glasman
City Manager
Steve Carmona
City Clerk
Vacant
Director of
Parks and Recreation
Pamela Yugar
Director of Community and
Economic Development
Alvaro Betancourt
Director of
Public Works
Noe Negrete
Director of
Administrative Services
Jane Guo
City Council
Assistant City Manager
Angelina Garcia
Director of
Human Resources
Karine Shirinian
Director of Innovation and
Communications
Javier Hernandez
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pico Rivera
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO

FINANCIAL SECTION
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INDEPENDENT AUDITORS’ REPORT
Honorable City Council
City of Pico Rivera, California
Pico Rivera, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Pico Rivera (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City of Pico Rivera’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pico Rivera, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

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

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
Honorable City Council
City of Pico Rivera, California
(2)
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Honorable City Council
City of Pico Rivera, California
(3)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios of the pension plans and schedules of pension plan contributions, schedule of changes in net OPEB liability and related ratio, the schedule of contributions – OPEB Plan, and the budgetary comparison schedules for the general and major special revenue funds, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual non-major fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Honorable City Council
City of Pico Rivera, California
(4)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2023, on our consideration of the City of Pico Rivera’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Pico Rivera’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 Pico Rivera’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
December 1, 2023
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(5)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
The Management Discussion and Analysis (MD&A) provides a narrative introduction, overview and analysis that will assist in understanding the City's financial statements. We encourage readers to consider the information presented here in conjunction with the City's financial statements as of June 30, 2023, the transmittal letter and the notes to the basic financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts: the management's discussion and analysis (this portion), the basic financial statements, notes to the basic financial statements and required supplementary information. In addition to the required parts, we have included the optional combining statements for other governmental funds, other enterprise funds, agency funds and a statistical section. This discussion and analysis are intended to serve as an introduction to the City's basic financial statements.

The City's basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to basic financial statements. This report also contains supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to a business in the private sector.

The statement of net position presents information on all of the City's assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference between the two reported as net position.

Net position is then shown as restricted or unrestricted. Over time, increases or decreases in the net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only affect cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). (6)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
The government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government, public safety, public works, community development, recreation, nondepartmental, and interest on long-term debt.

The government-wide financial statements include not only the City itself (known as the primary government) but also three legally separate entities: the Pico Rivera Public Financing Authority, the Pico Rivera Water Authority, and the Pico Rivera Housing Assistance Agency. The City is financially accountable for these entities, and financial information for these blended component units is reported within the financial information presented for the primary government itself.

The government-wide financial statements can be found beginning on page 18 of this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Such information may be useful in evaluating the City's near-term financial requirements.

Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenue, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

This document reports thirty (30) governmental funds. Information is presented separately in the governmental funds balance sheet (pages 22-23) and in the governmental funds statement of revenues, expenditures and changes in fund balances (pages 25-26) for the General Fund, the Housing Agency Section 8 Fund, American Rescue Plan Fund, and the 2018 Series A COP Fund since these funds are considered major funds. Data from the additional twenty-six (26) governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements in the other governmental funds' supplementary information section of this report, which begins on page 94.

The City adopts an annual appropriated budget for its General Fund as well as its other governmental funds.

Budgetary comparison statements are presented on pages 90-92 and 108 - 129. The governmental fund financial statements can be found on pages 18 through 27 of this report. (7)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Proprietary Funds - Proprietary funds use the accrual basis of accounting, which is the same method used by private businesses. Proprietary funds can be classified as either “enterprise funds” or “internal service funds.” The City maintains only one type of proprietary fund: enterprise funds. The City has four enterprise funds: the Water Enterprise Fund, the Golf Course Fund, the Sports Arena Fund, and the Pico Rivera Innovative Municipal Energy (PRIME) fund. The PRIME fund was established during Fiscal Year 2017- 18 and is utilized to capture the activity of the City's Community Choice Aggregate enterprise function.

The basic proprietary fund financial statements can be found beginning on pages 28 through 30 and pages 130 through 133 of this report.

Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City has one Fiduciary fund: the Successor Agency to the City of Pico Rivera Redevelopment Agency Private-Purpose Trust Fund. This fund is not reflected in the government-wide financial statements because the resource of this fund is not available to support the City's own programs.

The accounting used for fiduciary funds is the full accrual accounting method. The fiduciary fund financial statements can be found on pages 32 and 34 of this report.

Notes to Financial Statements
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found beginning on page 35 of this report.

Required Supplementary Information
The required supplementary information (RSI) schedules further explain and support the information in the financial statements. This section includes the schedules of the City's funding for its employee pension program, other post-employment benefit (OPEB) programs and the budgetary comparison for the general and major special revenue funds. The required supplementary information can be found on pages 84 through 93 of this report.

Other Supplementary Information
Other supplementary information includes combining and individual budgetary comparison schedules for non-major Governmental Funds, combining statements for other enterprise funds and Agency Funds and Internal Service funds. Other supplementary information can be found on pages 94 through 133 of this report.

FINANCIAL HIGHLIGHTS
Citywide
 Comparing the fiscal year ended June 30, 2023 with June 30, 2022, the City's total net position increased by $35.171 million, from $339.533 million to $374.704 million. Of this amount, there was an increase in total assets of $34.325 million to $503.226 million, an increase in total liabilities of $16.082 million to $137.108 million, an increase in deferred outflows of resources of $7.543 million and a decrease of deferred inflows of resource of $9.385 million.  Citywide revenues totaled $125.307 million, an increase of $10.304 million over the prior year.

Expenses were $90.136 million, an increase of $1.088 million over the prior year. (8)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
• During the year, the City actively worked on several capital improvement projects, resulting in some capital outlays including: $8.322 million in the residential resurfacing program, $4.272 million in the Per-and Polyfluorinated Substances (PFAS) Treatment, $3.284 million in the Advance Metering Infrastructure project, $2.043 million in the traffic signal upgrade, to name a few. As a result, the City’s capital assets, after depreciation, increased by $24.360 million to $337.810 million.

Citywide – Governmental Activities
Governmental Activities revenues increased $2.737 million to $86,049 million (prior to any transfers).

The net increase resulted from a combination of a few main factors: increases of $1.134 million in charges for services, $2.233 million in investment earnings, $1.186 million in property taxes, $566 thousand in sales taxes, $434 thousand in utility users taxes, $1.941 million in other taxes, and $1.832 million in miscellaneous revenues, offset by decreases of $4.515 million in operating grants and $2.180 in capital grants.

Governmental Activities expenditures increased by $1.172 million to $62.321 million. This is mainly attributed to a combination of increases and decreases as follows: $2.545 million increase in General Government, $1.157 million in Public Works, and $1.083 million in Parks and Recreation, total increases offset by a decrease in Community Development expenditures of $4.934 million.

Fund Level – General Fund
 General Fund revenues were $56.496 million, an increase of $7.461 million over the prior year.

The increase was mainly due to increased sales taxes, property taxes, utility user taxes, plan check fees, investment income, and miscellaneous income.
 Tax revenues increased by $2.166 million as the City received $566 thousand more sales taxes, primarily due to the impact of inflation on consumer goods. The City received $1.110 million more property taxes due to the sales of several industrial parcels in FY 2023 and increased property assessments compared to the prior fiscal year. Utility user tax increased by $434 thousand due to increased usage and pricing of electric and natural gas billed charges.  Intergovernmental revenue decreased by $546 thousand as less reimbursement was received than the prior fiscal year for the street and highway maintenance projects.  Licenses and permits revenue increased by $2.165 million due to increased building permits, plumbing permits, heating air conditioning permits, plan check fees, zoning and planning fees, and storm drains revenue categories that continue to show favorable growth.  Fines, forfeitures, and penalties revenue decreased by $27 thousand, primarily due to decreased court fines.
 Investment and rental revenues increased by $1.930 million. The increase was mainly attributed to higher investment market value returns compared to the last fiscal year.  Charges for services increase by $252 thousand due to increasing in-person programs, services, and special events.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
 Miscellaneous revenues increased by $1.522 million primarily due to legal settlements of $811 thousand and insurance reimbursement of $398 thousand for the golf course.  General Fund expenditures were $47.845 million, a $9.931 million increase from the prior year.

This was primarily due to the prior year's law enforcement costs being offset by $10.228 million from ARPA funding related to "General Revenue Loss" with the law enforcement operating expenses.
 The Public Works expenditures increased by $1.498 million as the department filled some vacancies and experienced increased contracted services and supplies due to inflation.  Community and Economic expenditures decreased by $4.664 million as the prior fiscal year amount included $5 million transferred from the General Fund to the Successor Agency to refinance the 2001 Tax Allocation Bonds with the 2021 Tax Allocation Bonds.  The General Fund's fund balance increased by $9.048 million to $82.270 million as of June 30, 2023.

Fund Level – Proprietary Funds
The City had four Enterprise Funds in Fiscal Year 2022-23.

Business-type Activities – Enterprise Funds – Overall, the total net position of these funds increased by $11.500 million to $47.237 million at June 30, 2023.
 Total assets increased by $7.018 million to $87.932 million, primarily due to an increase of $7 million in water fund capital assets resulting from the Per-an Polyfluoroalkyl Substances (PFAS) project and the Advanced Metering Infrastructure (AMI) System that the City worked on in FY 2022-23.
 Total liabilities decreased by $1.621 million to $42.164 million, comprised of $3.439 million decrease in current liabilities., and an increase of $1.818 million in noncurrent liabilities. As of June 30, 2022, PRIME owed $3.383 million to the General Fund. The balance was paid off as of June 30, 2023, decreasing the current liabilities by $3.383 million. There are three notable changes in the noncurrent liabilities: an increase of $2.307 million in the net pension liability, an increase of $$717 thousand in Advances from the General Fund to the Golf Course Fund, and a decrease of $1.230 million in bonds payable as the City pays down the Water Authority Revenue Bond Series 1999 A.
 Total operating revenues increased $8.182 million to $38.588 million, and operating expenses increased $235 thousand to $27.353 million. Most changes were related to the operation of Pico Rivera Innovative Municipal Energy (PRIME). The Charges for Services revenue increased by $5.582 million, primarily due to more demand for PRIME. At the same time, the cost of PRIME's power supply has increased by $1.138 million.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Fund Level – Fiduciary Funds
 The Fiduciary Fund is discussed later in this document.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City of Pico Rivera is presenting its financial statements under the reporting models required by the Governmental Accounting Standard Board (GASB) pronouncements. The most recent pronouncements implemented by the City, GASB 96, require the reporting of subscription-based information technology arrangements (SBITAs).

Shown on the next page is the schedule of Statement of Net Position for the years ended June 30, 2023 and 2022, covering Governmental Activities and Business-Type Activities (i.e., enterprise funds).

Net position serves as an indicator of a government's financial position over time. As of June 30, 2023, the City's combined net position (governmental and business-type activities) totaled $374.705 million, an increase of $35.171 million from the prior year.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
City of Pico Rivera
Statement of Net Position
Fiscal Year ended June 30, 2023 and June 30, 2022
Net position consists of three categories: net investment in capital assets, restricted assets, and unrestricted assets. The largest amount of the net position (governmental and business-type activities), approximately $295.287 million is the City's investment in capital assets, including land, buildings, infrastructure, furniture, and equipment, net of accumulated depreciation and related debt for acquiring these capital assets. Since the capital assets are used to provide services to citizens, these assets are not available to fund the City's day-today activities. (Balance of page intentionally left blank)
2023 2022 2023 2022 2023 2022
As s ets :

C urre nt a nd Othe r A s s e ts $ 120,066,304 $ 107,909,207 $ 28,384,914 $ 30,650,156 $ 14 8 ,4 5 1,2 18 $ 13 8 ,5 5 9 ,3 6 3 Inte rna l B a la nc e s 19,701,636 22,367,512 (19,701,636) (22,367,512) - - La nd he ld fo r re s a le 1,701,360 1,701,360 - - 1,7 0 1,3 6 0 1,7 0 1,3 6 0 R e c e iv a ble s fro m S uc c e s s o r A g e nc y 15,070,401 14,999,752 192,770 189,699 15 ,2 6 3 ,17 1 15 ,18 9 ,4 5 1 Capital As s e ts 278,632,226 263,552,334 59,177,953 49,898,279 3 3 7 ,8 10 ,17 9 3 13 ,4 5 0 ,6 13 To tal As s e ts $ 435,171,927 $ 410,530,165 $ 68,054,001 $ 58,370,622 $ 503,225,928 $ 468,900,787 D e fe rre d Outflo w o f re s o urc e s $ 13,149,379 $ 6,896,596 $ 2,255,705 $ 965,262 $ 15 ,4 0 5 ,084 $ 7 ,8 6 1,8 5 8 Lia bilitie s :

C urre nt lia bilitie s $ 22,437,477 $ 18,743,425 $ 5,664,351 $ 5,720,275 $ 2 8 ,10 1,8 2 8 $ 2 4 ,4 6 3 ,7 0 0 Lo ng -te rm lia bilitie s 41,600,203 42,951,499 7,491,870 8,712,416 4 9 ,0 9 2 ,0 7 3 5 1,6 6 3 ,9 15 Ne t OP EB Obligatio n 15,511,905 14,846,687 1,609,402 1,594,827 17 ,12 1,3 0 7 16 ,4 4 1,5 14 N e t P e ns io n Lia bilitie s 35,272,270 23,242,557 7,520,930 5,214,285 42,793,200 28,456,842 To ta l Lia bilitie s $ 114,821,855 $ 99,784,168 $ 22,286,553 $ 21,241,803 $ 13 7 ,10 8 ,4 0 8 $ 12 1,0 2 5 ,9 7 1 D e fe rre d Inflo ws o f re s o urc e s $ 6,031,718 $ 13,846,693 $ 786,394 $ 2,356,809 $ 6 ,8 18 ,112 $ 16 ,2 0 3 ,5 0 2 Ne t P o s itio n:

Ne t inve s tme nt in c apital as s e ts $ 244,677,341 $ 237,260,527 $ 50,610,138 $ 40,280,888 $ 2 9 5 ,2 8 7 ,4 7 9 $ 2 7 7 ,5 4 1,4 15 R e s tric te d 31,184,653 27,978,094 - - 3 1,18 4 ,6 5 3 2 7 ,9 7 8 ,0 9 4 Unre s tric te d 51,605,739 38,557,279 (3,373,379) (4,543,616) 4 8 ,2 3 2 ,3 6 0 3 4 ,0 13 ,6 6 3 To tal Ne t P o s itio n $ 327,467,733 $ 303,795,900 $ 47,236,759 $ 35,737,272 $ 3 7 4 ,7 0 4 ,4 9 2 $ 3 3 9 ,5 3 3 ,17 2 Go v e rnm e nta l A c tiv itie s B us ine s s -Type
Ac tivitie s To tal
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
On June 30, 2023, the City's restricted net position was $31.185 million or 8.32% of the total net position.

These are assets subject to external restrictions, constitutional provisions, or enabling legislation that limits how these assets may be used. The restricted net position includes the Housing Section 8 Grant Fund, Home Grant Fund, and other special revenue funds. The remaining balance of the net position of $48.232 million is unrestricted and may be used to meet the government's ongoing obligations to citizens and creditors. The unrestricted amount increased by $14.21 million when compared to the June 30, 2022 amount.

Governmental Activities - Governmental activities' assets increased $24.642 million to $435.172 million, liabilities increased $15.038 million to $114.822 million, and total net position increased $23.672 million to $327.468 million when compared to the prior year.
 Cash and investments increased by $15.948 million to $95.407 million compared to the prior year.  As the City paid down outstanding bond payable principal, long-term liabilities decreased by $1.351 million to $41.600 million.
 There were $27.207 million in pension liabilities along with the deferred outflow of resources and deferred inflows of resources that are related to the implementation of GASB 68, which was first effective for FY ended June 30, 2015, and was first reported on the financial statements for FY 2014-15.
 There were $17.934 million in Other Post Employment Benefit (OPEB) liabilities along with deferred outflow of resources and deferred inflows of resources relative to the implementation of GASB 75, effective for FY 2017-18. Similar to GASB 68, OPEB liabilities, deferred outflows/inflows of resources and expenses related to post-employment benefits (i.e., retiree health care) must be recognized in the financial statements.

Business-Type Activities - Business-type activities assets increased by $9.683 million to $68.054 million.

Liabilities increased by $1.045 million to $22.287 million, primarily due to a $2.3 million rise in pension liabilities, which is offset by the payment of $1.125 million in principal on Water Authority Revenue Bond Series 1999 A.
 There were $5.8 million in pension liabilities along with the deferred outflow of resources and deferred inflows of resources that are related to the implementation of GASB 68, which was first effective for FY ended June 30, 2015, and was first reported on the financial statements for FY 2014-15.
 There were $1.861 million in Other Post Employment Benefit (OPEB) liabilities along with deferred outflow of resources and deferred inflows of resources relative to the implementation of GASB 75, effective for FY 2017-18. Similar to GASB 68, OPEB liabilities, deferred outflows/inflows of resources and expenses related to post-employment benefits (i.e., retiree health care) must be recognized in the financial statements.

The Statement of Activities for the Governmental Activities and Business-type Activities is shown on the following page.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
City of Pico Rivera
Statement of Activities
Fiscal Year ended June 30, 2023 and June 30, 2022
Governmental Activities – Total revenues increased by $2.737 million, and expenses increased by $1.172 million compared to the previous year.
 Overall, program revenues decreased by $5.561 million, primarily due to a decrease of $4.515 million in operating grants and a decrease of $2.180 in capital grants.  Overall, general revenues increased by $8.298 million, including the property taxes up by $1.186 million, the sales and use taxes increased by $566 thousand, the utility user taxes by $434 thousand, the other taxes by $1.941 million as the City’s business licenses increased $1.877 million due to Measure AB approved by the City voters in November 2021, the investment earnings by $2.233 million due to stronger investment returns compared to the prior fiscal year, and the City sold a property with a gain of $929 thousand.
2023 2022 2023 2022 2023 2022
Revenues
P ro gram Revenues :

Charges fo r s ervices $ 5,972,134 $ 4,837,941 $ 36,069,315 $ 30,406,043 $ 4 2 ,0 4 1,4 4 9 $ 3 5 ,2 4 3 ,9 8 4 Operating grants an co ntributio ns 22,046,380 26,561,448 246,661 476,602 2 2 ,2 9 3 ,0 4 1 2 7 ,0 3 8 ,0 5 0 Capital grans and co ntributio ns 3,207,183 5,387,593 2,518,595 - 5,725,778 5,387,593 General Revenues : - -
P ro perty taxes 15,016,822 13,831,113 15 ,0 16 ,8 2 2 13 ,8 3 1,113 Sales and us e taxes 25,116,979 24,551,320 - - 2 5 ,116 ,9 7 9 2 4 ,5 5 1,3 2 0 Franchis e taxes 2,063,404 1,956,998 - - 2 ,0 6 3 ,4 0 4 1,9 5 6 ,9 9 8 Utility us ers taxes 4,001,578 3,567,128 - - 4 ,0 0 1,5 7 8 3 ,5 6 7 ,12 8 Other taxes 3,867,144 1,926,617 - - 3 ,8 6 7 ,14 4 1,9 2 6 ,6 17 Unres tricted Inves tment earnings 2,035,505 (197,845) 423,345 449,236 2,458,850 2 5 1,3 9 1 Gain o n bo nd defeas ance - - 683,028 - 683,028
Gain o n s ale o f capital as s ets 928,625 - - 928,625 - Mis cellaneo us 1,793,456 889,854 - - 1,7 9 3 ,4 5 6 889,854 To tal Revenues $ 86,049,210 $ 83,312,167 $ 39,257,916 $ 32,014,909 $ 12 5 ,3 0 7 ,12 6 $ 115 ,3 2 7 ,0 7 6 Expens es
General Go vernment 10,634,542 8,089,449 10 ,6 3 4 ,5 4 2 8 ,0 8 9 ,4 4 9 P ublic s afety 12,661,589 12,144,703 - - 12 ,6 6 1,5 8 9 12 ,14 4 ,7 0 3 P ublic wo rks 15,857,499 14,700,643 - - 15 ,8 5 7 ,4 9 9 14 ,7 0 0 ,6 4 3 P arks and recreatio n 8,540,605 7,457,649 - - 8,540,605 7,457,649 Health and welfare 7,274,930 6,414,485 - - 7 ,2 7 4 ,9 3 0 6 ,4 14 ,4 8 5 Co mmunity develo pment 5,957,282 10,891,361 - - 5 ,9 5 7 ,2 8 2 10 ,8 9 1,3 6 1 Interes t and fis cal charges 1,394,492 1,450,395 - - 1,3 9 4 ,4 9 2 1,4 5 0 ,3 9 5 Enterpris e o peratio ns - - 27,814,867 28,223,266 2 7 ,8 14 ,8 6 7 2 8 ,2 2 3 ,2 6 6 To tal Expens es $ 62,320,939 $ 61,148,685 $ 27,814,867 $ 28,223,266 $ 9 0 ,13 5 ,8 0 6 $ 8 9 ,3 7 1,9 5 1 Increas e/Decreas e in net po s itio n
befo re trans fers 23,728,271 22,163,482 11,443,049 3,791,643 3 5 ,17 1,3 2 0 2 5 ,9 5 5 ,12 5 trans fers (56,438) - 56,438 - -
Change in net po s itio n: $ 23,671,833 $ 22,163,482 $ 11,499,487 $ 3,791,643 $ 3 5 ,17 1,3 2 0 $ 2 5 ,9 5 5 ,12 5 Net po s itio n-beginning o f year 303,795,900 281,632,418 35,737,272 31,945,629 3 3 9 ,5 3 3 ,17 2 3 13 ,5 7 8 ,0 4 7 Net po s itio n-end o f year $ 327,467,733 $ 303,795,900 $ 47,236,759 $ 35,737,272 $ 3 7 4 ,7 0 4 ,4 9 2 $ 3 3 9 ,5 3 3 ,17 2 Go v e rnm e nta l A c tiv itie s B us ine s s -Type Ac tivitie s To tal -
-
-
-
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
 Expenses increased by $1.172 million in FY 2022-23. There are a few main factors: the General Government expenses increased by $2.545 million, Public Works expenses increased by $1.157 million, and Parks and Recreation expenses increased by $1.083 million due to vacancies filling, higher contracted services and supplies, and the pension transactions. The Community Development expenses decreased by $4.934 million, as the prior fiscal year amount included $5 million transferred from the General Fund to the Successor Agency to refinance the 2001 Tax Allocation Bonds with the 2021 Tax Allocation Bonds.

Business-Type Activities - The City has two major Enterprise Funds, the Water Fund and the Pico Rivera Innovative Municipal Energy (PRIME), which operated for the fourth full year in FY 2022-23.  Revenue increased by $7.243 million, primarily due to Charges for Services revenue up by $5.664 million and capital grants of $2.519 million received from the Waer Replenishment District for the PFAS project.
 Expenses decreased by $408 thousand. There are two notable items: $1.239 million less pension expenses allocated for the Water Fund, and the rising cost of the purchased power of $1.138 million in FY 2022-23.

FUND FINANCIAL STATEMENTS
Governmental Funds - The City uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The focus of the City's governmental funds is to provide information on nearterm inflows and outflows during the fiscal year and balances of spendable resources at the end of the fiscal year. Such information may be useful in assessing the City's financing requirements to meet the current needs. In particular, unassigned fund balance may serve as a useful measure of the City's net resources available for appropriation.

As of June 30, 2023, the City's governmental funds reported a combined ending fund balance of $125.456 million, as shown on page 23. The fund balance categories of governmental funds displayed $26.900 million as nonspendable, $33.007 million as restricted, $28.904 million as committed, $34.302 million as assigned, and $2.343 million as unassigned. (Please refer to Note Number 12 of the Notes to Financial Statements for a detailed breakdown.)
The City reports four major governmental funds: the General Fund, the Special Revenue Housing Agency Section 8 Fund, the Special Revenue American Rescue Plan Fund, and the Capital Projects 2018 Series A COP, which is described below. Major Funds are defined generally as having significant activities or balances in the current year. Other governmental individual funds may be found in the Supplemental section, which begins on page 94.

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
General Fund - The General Fund is the chief operating fund of the City and is used for all the general revenues of the City, not specifically levied or collected for other City funds and its related expenditures.

At the end of the current fiscal year, the General Fund had a fund balance of $82.303 million, an increase of $9.081 million from the previous year. The nonspendable amount is $26.900 million, the restricted amount is $1.336 million, the committed amount is $28.904 million, the assigned amount is $20.990 million, and the unassigned amount is $4.173 million.

Housing Agency Section 8 Fund – This Fund accounts for monies received from the U.S. Department of Housing and Urban Development for rental assistance for low-income families to meet their housing needs.

During the year, $6.206 million in revenue was received, and $6.148 million was spent. The ending fund balance was $533 thousand.

This fund's largest revenue source is the actual Section 8 Federal Funding used to provide housing assistance to eligible residents. Actual revenue is a function of the number of housing vouchers issued. For FY 2022- 23, $93 thousand less was received compared to the prior year, and overall expenditures were $72 thousand higher when compared to the prior year.

American Rescue Plan Special Revenue Fund – This fund accounts for funds received from the U.S. (federal) government to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. The City received the 1st and the 2nd tranches of the allocation of $7.386 million each in May 2021 and June 2022, respectively. The City offset $10.228 million in "General Revenue Loss" funds with the law enforcement operating expenses in FY 2021-22. There is $4.544 million remaining as unearned revenue in the American Rescue Plan Fund as of 6/30/2023. The City will obligate all funds by December 31, 2024, and expend all funds by December 31, 2026, per the guidelines set forth by the U.S. Treasury Department.
2018 Series A COP Capital Projects Fund – This fund accounts for activity related to the City's capital projects financed with the 2018 Series A Certificates of Participation that were issued in FY 2018-19 in the aggregate outstanding principal amount of $13.405 million at June 30, 2023.

During the year, there was interest revenue of $265 thousand, a bond principal payment of $290 thousand and interest charges of $546 thousand in expenditures. The ending fund balance was $5.088 million.

Business-type Activities – Enterprise Funds
The enterprise fund group has two major funds: the Water Operations Enterprise fund and the Pico Rivera Municipal Energy (PRIME) fund, which are discussed below.

Water Operations Enterprise Fund - The Water Operations Enterprise Fund accounts for the operation and maintenance of the City's water treatment, water transmission and distribution system. During the year, $13.508 million was received as revenue, mainly from charges for services, with expenses coming in at $7 million. During the year, there was a $274 thousand investment income and $461 thousand bond interest charges. The Water Fund's net position increased by $6.377 million from the prior year to $39.755 million.

Pico Rivera Innovative Municipal Energy (PRIME) Fund – PRIME was created in FY 2017-18. The City established a Community Choice Aggregation (CCA) operation. PRIME is operated as a modified Joint Powers Authority (JPA), with the City of Lancaster as the lead agency of the JPA. CCAs operate such that power purchase and rate-setting authority is exercised locally. Southern California Edison (SCE) still provides transmission of all electricity as well as billing. However, PRIME utilizes third-party consultants to purchase power and answer billing inquiries from Pico Rivera residents. The benefit is that the overhead (15)
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
is lower, and those cost savings have been passed on to residential and commercial customers.

During the year, revenues increased $5.975 million to $24.006 million, and operating expenses increased $1.713 million to $18.935 million from the prior year.

Please refer to pages 22 and 23 for the Balance Sheet of Governmental Funds, page 24 for the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position, pages 25 and 26 for the Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds, and page 27 for the Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities. For the Water Operations Enterprise Fund, see pages 28 through 29.

Capital Assets Administration
The City's investments in capital assets at June 30, 2023 were $278.632 million (net of accumulated depreciation of $164.119 million) for its governmental activities and $59.178 million (net of accumulated depreciation of $25.715 million) for its business-type activities. The investment in capital assets includes land, buildings, structures and improvements, infrastructure (roads, sidewalks, streetlights, etc.), furniture, vehicles, equipment and construction in progress.

City of Pico Rivera
Capital Assets (Net of Accumulated Depreciation)
Fiscal Year ended June 30, 2023 and June 30, 2022
Additional information on the City's capital assets can be found in Note 5 to the basic financial statements on pages 54 to 55 of this report.

Debt Administration
As of June 30, 2023, the City had a total indebtedness of $ 112.636 million, an increase of $12.551 million.

Debt includes bonds, certificates of participation, pension obligations, post-employment benefits, lease obligations, and compensated absences. State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total assessed valuation.

Governmental activities - Overall, governmental activities' total indebtedness at year-end is $94.794 million. Governmental activities total indebtedness increased by $11.385 million during the year, primarily due to the increase of net pension liabilities by $12.030 million with no significant changes in staffing.

Please refer to note 6 on pages 56 to 57 for further details. 2023 2022 2023 2022 2023 2022
Land* $ 120,696,364 $ 118,908,710 $ 18,174,060 $ 18,174,060 $ 13 8 ,8 7 0 ,4 2 4 $ 13 7 ,0 8 2 ,7 7 0 Structures & Impro vements 25,590,725 25,590,725 7,132,351 5,228,051 3 2 ,7 2 3 ,0 7 6 3 0 ,8 18 ,7 7 6 Furniture, Equipment & Vehicles 7,689,601 7,291,797 2,410,638 1,473,468 10 ,10 0 ,2 3 9 8 ,7 6 5 ,2 6 5 Infras tructure 252,352,928 247,089,714 17,692,287 17,692,287 2 7 0 ,0 4 5 ,2 15 2 6 4 ,7 8 2 ,0 0 1 Leas ed As s ets 111,108 111,108 - - 111,10 8 111,108
Co ns tructio n in pro gres s 36,310,556 22,684,844 12,118,244 4,302,493 48,428,800 26,987,337 Rights o f Way - - 5,579,916 5,579,916 5 ,5 7 9 ,9 16 5 ,5 7 9 ,9 16 Utility P lant - - 21,785,673 21,785,673 2 1,7 8 5 ,6 7 3 2 1,7 8 5 ,6 7 3 To tal Capital As s ets $ 442,751,282 $ 421,676,898 $ 84,893,169 $ 74,235,948 $ 5 2 7 ,6 4 4 ,4 5 1 $ 4 9 5 ,9 12 ,8 4 6 Les s depreciatio n (164,119,056) (158,124,564) (25,715,216) (24,337,669) (18 9 ,8 3 4 ,2 7 2 ) (18 2 ,4 6 2 ,2 3 3 ) Net Capital As s ets $ 278,632,226 $ 263,552,334 $ 59,177,953 $ 49,898,279 $ 3 3 7 ,8 10 ,17 9 $ 3 13 ,4 5 0 ,6 13 *Includes value o f "Water Rights " fo r Bus ines s -Type Activities Go v e rnm e nta l A c tiv itie s B us ine s s -Type A c tiv itie s To tal (17)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2023
Business-type activities - Overall, business-type debt at year-end is $17.842 million. Business-type activities total indebtedness increased during the year by $1.167 million due to the increase of net pension liabilities by $2.307 million with no significant changes in staffing; this increase has been offset by $1.125 million principal payment for the 1999 Water Authority Revenue Bonds. Please refer to note 6 on pages 57 to 58 for further details.

City of Pico Rivera
Outstanding Long-Term Liabilities
Fiscal Year ended June 30, 2023 and June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The General Fund realized a $9.579 million operating surplus (operating revenues less operating expenditures) as of June 30, 2023. (When Transfer In/Transfer Out are included, the net change in fund balance was $9.048 million.)
The Fiscal Year 2023-24 General Fund budget is balanced. The City's sales tax and property tax revenues are projected to increase 2%-3% in FY 2023-24. Given the ongoing national economic challenges, including continuing inflation, constrained supply in the goods, services, and labor markets, more stringent Federal monetary policies and market volatility, the City will continue enhancing revenues and improving operational efficiency to ensure financial sustainability and security.

The budget document will be the basis of an ongoing effort to monitor the City's finances. Staff provides monthly and quarterly updates to the City Council to ensure the City stays on its financial plan and our ongoing budgets remain balanced and on the path to a sustainable future.

REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for readers of the financial statements. Questions concerning any of the information in this report or requests for additional financial information should be addressed to the Director of Administrative Services, City of Pico Rivera, California.
2023 2022 2023 2022 2022 2021
Bo nded Indebtednes s :

Revenue bonds $ 23,965,000 $ 24,960,000 $ 8,180,000 $ 9,305,000 $ 3 2 ,14 5 ,0 0 0 $ 3 4 ,2 6 5 ,0 0 0 Certificates o f P articipatio n 13,405,000 13,695,000 - - 13 ,4 0 5 ,0 0 0 13 ,6 9 5 ,0 0 0 Bo nd premium 2,730,302 2,887,775 232,506 272,364 2 ,9 6 2 ,8 0 8 3 ,16 0 ,13 9 Bo nd dis co unt - - - - - -
Other lo ng-term debt:

Net pens io n liabilities 35,272,270 23,242,557 7,520,930 5,214,285 42,793,200 28,456,842 Other po s t-emplo yment benefits 15,511,905 14,846,687 1,609,402 1,594,827 17 ,12 1,3 0 7 16 ,4 4 1,5 14 Claims and judgements 2,190,000 2,308,000 - - 2 ,19 0 ,0 0 0 2 ,3 0 8 ,0 0 0 Compensated absences 1,719,281 1,468,505 299,293 288,947 2 ,0 18 ,5 7 4 1,7 5 7 ,4 5 2 To tal Indebtednes s $ 94,793,758 $ 83,408,524 $ 17,842,131 $ 16,675,423 $ 112 ,6 3 5 ,8 8 9 $ 10 0 ,0 8 3 ,9 4 7 Go v e rnm e nta l A c tiv itie s B us ine s s -Type A c tiv itie s To tal

CITY OF PICO RIVERA, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(18)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 95,407,096 $ 20,847,087 $ 116,254,183 $ Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 6,829,385 1,083,143 7,912,528 Escrow Deposits 2,339 - 2,339
Receivables, Net:

Accounts 6,209,115 6,383,280 12,592,395
Taxes 7,147,881 - 7,147,881
Interest 458,680 71,404 530,084
Internal Balances 19,701,636 (19,701,636) -
Inventories 3,825 - 3,825
Prepaid Items 152,617 - 152,617
Long-Term Receivables 3,855,366 - 3,855,366
Land Held for Resale 1,701,360 - 1,701,360
Receivables from Successor Agency 192,770 15,070,401 15,263,171 Capital Assets, Not Depreciated 157,006,920 35,872,220 192,879,140 Capital Assets, Depreciated, Net 121,625,306 23,305,733 144,931,039 Total Assets 435,171,927 68,054,001 503,225,928

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding - 1,474,284 1,474,284
Amounts Related to OPEB 2,147,827 222,843 2,370,670
Amounts Related to Pension Plans 9,527,268 2,032,862 11,560,130 Total Deferred Outflows of Resources 13,149,379 2,255,705 15,405,084

LIABILITIES
Accounts Payable 7,780,790 3,075,905 10,856,695
Accrued Interest Payable 346,422 74,983 421,405
Accrued Liabilities 847,771 513,715 1,361,486
Deposits 901,332 609,557 1,510,889
Retention Payable 416,907 155,309 572,216
Unearned Revenue 5,824,425 14,953 5,839,378
Due to Other Agencies 3,849,131 - 3,849,131
Long-Term Liabilities:

Due Within One Year 2,470,699 1,219,929 3,690,628
Due in More Than One Year:

Long-Term Liabilities 41,600,203 7,491,870 49,092,073
Net OPEB Liability 15,511,905 1,609,402 17,121,307
Net Pension Liability 35,272,270 7,520,930 42,793,200
Total Liabilities 114,821,855 22,286,553 137,108,408

DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 4,569,717 474,121 5,043,838
Amounts Related to Pension Plans 1,462,001 312,273 1,774,274 Total Deferred Inflows of Resources 6,031,718 786,394 6,818,112

NET POSITION
Net Investment in Capital Assets 244,677,341 50,610,138 295,287,479 Restricted for Community Development 10,896,869 - 10,896,869 Restricted for Transportation 14,552,153 - 14,552,153
Restricted for Low- and Moderate-Income Housing - 3,259,813 3,259,813 Restricted for Pension Contribution 1,288,720 - 1,288,720 Restricted for Other Purposes 1,187,098 - 1,187,098
Unrestricted 51,605,739 (3,373,379) 48,232,360
Total Net Position $ 327,467,733 $ 47,236,759 $ 374,704,492

CITY OF PICO RIVERA, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(19)
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions

FUNCTIONS/PROGRAMS
Governmental Activities:

General Government 10,634,542 $ 1,161,745 $ 3,062,648 $ - $ Public Safety 1,144,044 12,661,589 214,702 -
Public Works 15,857,499 991,248 7,012,517 3,207,183
Parks and Recreation 8,540,605 487,136 1,857,430 -
Health and Welfare 7,274,930 184,645 1,598,505 -
Community Development 5,957,282 2,003,316 8,300,578 -
Interest and Fiscal Charges 1,394,492 - - -
Total Governmental Activities 62,320,939 5,972,134 22,046,380 3,207,183 Business-Type Activities:

Water 7,461,720 10,989,386 - 2,518,595
Pico Rivera Innovative Municipal Energy 24,006,009 18,935,357 246,661 - Sports Arena (2,795) 318,378 - -
Golf 1,420,585 755,542 - -
Total Business-Type Activities 27,814,867 36,069,315 246,661 2,518,595 Total $ 90,135,806 $ 42,041,449 $ 22,293,041 $ 5,725,778

GENERAL REVENUES
Taxes:

Property
Sales and Use
Franchise
Utility Users
Other
Unrestricted Investment Earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total General Revenues and Transfers

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
Program Revenues

CITY OF PICO RIVERA, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(20)
Governmental Business-Type
Activities Activities Total
$ - (6,410,149) $ $ (6,410,149)
- (11,302,843) (11,302,843)
- (4,646,551) (4,646,551)
- (6,196,039) (6,196,039)
- (5,491,780) (5,491,780)
- 4,346,612 4,346,612
- (1,394,492) (1,394,492)
- (31,095,242) (31,095,242)
6,046,261 - 6,046,261
5,317,313 - 5,317,313
321,173 - 321,173
- (665,043) (665,043)
11,019,704 - 11,019,704
11,019,704 (31,095,242) (20,075,538)
- 15,016,822 15,016,822
- 25,116,979 25,116,979
- 2,063,404 2,063,404
- 4,001,578 4,001,578
- 3,867,144 3,867,144
423,345 2,035,505 2,458,850
928,625 - 928,625
- 1,793,456 1,793,456
56,438 (56,438) -
479,783 54,767,075 55,246,858
11,499,487 23,671,833 35,171,320
35,737,272 303,795,900 339,533,172
$ 47,236,759 327,467,733 $ 374,704,492 $
Changes in Net Position
Net (Expense) Revenue and
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CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF MAJOR FUNDS
JUNE 30, 2023
(21)

GOVERNMENTAL FUNDS
General Fund is the City’s primary operating fund and accounts for all the financial resources of the general government, except those required to be accounted for in another fund.

Housing Agency Section 8 Special Revenue Fund accounts for rental assistance expenditures incurred to assist very low and low-income families in meeting their housing needs. Funds are provided by the U.S. Department of Housing and Urban Development.

American Rescue Plan Special Revenue Fund accounts for funds received from the U.S. (federal) government to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses. 2018 Series A COP Capital Projects Fund accounts for activity related to the City’s capital projects that are funded by the 2018 Series A Certificates of Participation.

ENTERPRISE FUND
Water Operations Fund accounts for the operation and maintenance of the City’s water treatment, water transmission, and distribution system.

Pico Rivera Innovative Municipal Energy (PRIME) Fund accounts for the operation of the City’s Community Choice Aggregation Program, which allows residents to choose their electric power provider and the source of their electricity.

INTERNAL SERVICE FUND (NONMAJOR)
This fund accounts for the financing of services provided from one department to another on a costreimbursement basis.

Equipment Replacement Fund accounts for expenditures made for the purpose of purchasing equipment to replace obsolete, broken, or other items in which it is economically unfeasible to continue repairing.

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(22)
Housing American
Agency Rescue
General Section 8 Plan
ASSETS
Cash and Investments 47,223,118 $ 551,892 $ 4,544,655 $ Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 1,288,720 - -
Escrow Deposits - 2,339 -
Receivables:

Accounts 153,258 - -
Taxes 6,679,717 - -
Interest 322,298 - -
Due from Other Funds 2,347,765 - -
Inventories 3,825 - -
Advance to Other Funds 19,877,636 - -
Long-Term Receivables - - -
Prepaid Items 147,363 - -
Land Held for Resale 1,701,360 - -
Receivables from Successor Agency 13,557,003 - -
Total Assets $ 93,302,063 $ 554,231 $ 4,544,655

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 2,240,838 $ 3,207 $ -
Accrued Liabilities 780,674 15,580 -
Due to Other Funds 176,000 - -
Deposits 898,993 2,339 -
Retention Payable - - -
Unearned Revenue 202,011 - 4,544,655
Due to Other Agencies - - -
Total Liabilities 4,298,516 21,126 4,544,655

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 6,733,576 - -
Total Deferred Inflows of Resources 6,733,576 - -

FUND BALANCES (DEFICIT)
Nonspendable 26,900,752 - -
Restricted 1,335,720 533,105 -
Committed 28,903,778 - -
Assigned 20,990,019 - -
Unassigned 4,139,702 - -
Total Fund Balances (Deficit) 82,269,971 533,105 -
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 93,302,063 $ 554,231 $ 4,544,655 Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

BALANCE SHEET (CONTINUED)
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(23)
Capital Projects
Other Total
2018 Series A Governmental Governmental
COP Funds Funds
$ 42,120,982 100,833 $ 94,541,480 $
- 5,540,665 6,829,385
- - 2,339
- 6,055,857 6,209,115
- 468,164 7,147,881
- 131,907 454,205
- - 2,347,765
- - 3,825
- - 19,877,636
- 3,855,366 3,855,366
- 5,254 152,617
- - 1,701,360
- 1,513,398 15,070,401
$ 5,641,498 $ 54,150,928 $ 158,193,375
$ 519,714 $ 5,017,031 $ 7,780,790
9 51,508 847,771
- 2,347,765 2,523,765
- - 901,332
34,276 382,631 416,907
- 1,077,759 5,824,425
- 3,849,131 3,849,131
553,999 12,725,825 22,144,121
- 3,859,227 10,592,803
- 3,859,227 10,592,803
- - 26,900,752
5,087,499 26,083,500 33,039,824
- - 28,903,778
- 13,312,296 34,302,315
- (1,829,920) 2,309,782
5,087,499 37,565,876 125,456,451
$ 5,641,498 $ 54,150,928 $ 158,193,375
Fund
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CITY OF PICO RIVERA, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(24)
Fund Balances (Deficits) for Governmental Funds $ 125,456,451 Amounts reported for governmental activities in the statement of net position are different because:

Capital and leased assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds:

Capital Assets $ 441,952,014
Lease Assets 60,138
Less: Accumulated Depreciation (163,771,232)
Subtotal 278,240,920
Interest receivable on certain long-term loans and certain grants receivable are not available to pay for current-period expenditures and therefore are deferred in the governmental funds. In the statement of net position, these receivables are recognized as earned revenues. 10,592,803 Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the statement of net position. 1,261,397
Long-term liabilities and related accrued interest payable are not due and payable in the current period and therefore are not reported in the governmental funds:

Compensated Absences (1,719,281)
Claims Payable (2,190,000)
Accrued Interest Payable (346,422)
Lease Liability (61,319)
Revenue Bonds Payable (40,100,302)
Deferred Amount on Refunding 1,474,284
Subtotal (42,943,040)
Pension and OPEB related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions and OPEB are only reported in the statement of net position as the changes in these amounts affect only the government-wide statements for
governmental activities:

Deferred Outflows of Resources Related to OPEB 2,147,827 Deferred Inflows of Resources Related to OPEB (4,569,717) Net OPEB Liability (15,511,905)
Deferred Outflows of Resources Related to Pensions 9,527,268 Deferred Inflows of Resources Related to Pensions (1,462,001) Net Pension Liability (35,272,270)
Subtotal (45,140,798)
Net Position of Governmental Activities 327,467,733 $

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(25)
Housing American
Agency Rescue
General Section 8 Plan

REVENUES
Taxes and Assessments $ 44,582,928 $ - $ -
Licenses and Permits 5,776,946 - -
Intergovernmental 261,178 6,172,837 -
Charges for Services 1,561,583 - -
Fines, Forfeitures, and Penalties 1,171,765 - -
Investment and Rental 1,023,396 446 -
Miscellaneous 2,117,855 32,558 -
Total Revenues 56,495,651 6,205,841 -

EXPENDITURES
Current:

General Government 10,960,163 - -
Public Safety 12,651,644 - -
Public Works 10,051,681 - -
Parks and Recreation 5,880,692 - -
Health and Welfare - 6,147,787 -
Community Development 5,988,525 - -
Capital Outlay 364,171 - -
Debt Service:

Principal 995,000 - -
Interest and Fiscal Charges 926,250 - -
Lease Principal 25,205 - -
Lease Interest 1,876 - -
Total Expenditures 47,845,207 6,147,787 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 8,650,444 58,054 -
OTHER FINANCING SOURCES (USES):

Transfers In 1,847,348 - -
Transfers Out (2,378,608) - -
Sale of Capital Assets 928,625 - -
Total Other Financing Sources (Uses) 397,365 - -
NET CHANGE IN FUND BALANCES 9,047,809 58,054 -
Fund Balances (Deficits) - Beginning of Year 475,051 73,222,162 - FUND BALANCES (DEFICITS) - END OF YEAR $ 533,105 82,269,971 $ - $ Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(26)
Capital
Projects Fund
2018 Other Total
Series A Governmental Governmental
COP Funds Funds
$ - $ 2,117,129 $ 46,700,057
- - 5,776,946
- 16,264,085 22,698,100
- 777,380 2,338,963
- - 1,171,765
265,256 542,454 1,831,552
- 93,173 2,243,586
265,256 19,794,221 82,760,969
- 628 10,960,791
- - 12,651,644
- 3,443,088 13,494,769
- 1,715,243 7,595,935
- 1,127,143 7,274,930
- 184,369 6,172,894
7,554,545 11,117,856 19,036,572
290,000 - 1,285,000
546,172 - 1,472,422
- - 25,205
- - 1,876
8,390,717 17,588,327 79,972,038
(8,125,461) 2,205,894 2,788,931
836,169 2,378,608 5,062,125
- (2,683,517) (5,062,125)
- - 928,625
836,169 (304,909) 928,625
(7,289,292) 1,900,985 3,717,556
12,376,791 35,664,891 121,738,895
$ 5,087,499 $ 37,565,876 $ 125,456,451

CITY OF PICO RIVERA, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(27)
Net Change in Fund Balances - Total Governmental Funds $ 3,717,556 Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital expenses in the current period:

Capital Expenditures $ 21,208,515
Loss on Disposal (710)
Transfer of assets (56,438)
Depreciation Expense (6,462,781)
Subtotal 14,688,586
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds:

Adjustment to Interest Income on Notes Receivable
and Advances to Other Funds 191,915
Grant and Other Revenue Not Available to Pay
for Current-Period Expenditures 2,153,377
Subtotal 2,345,292
Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:

Net Change in Claims Payable 118,000
Net Change in Compensated Absences (250,776)
Subtotal (132,776)
Long-term liability activities are presented as financing sources and uses in the governmental funds but are reported as long-term liabilities in the statement of net position:

Principal Payments on Long-Term Liabilities 1,285,000
Principal Payments on Lease Liabilities 25,205
Amortization of Deferred Bond Charges 65,331
Change in Accrued Interest 14,475
Subtotal 1,390,011
Internal service funds were used by management to charge the cost of certain activities to the individual funds. The net revenue of the internal service funds was reported with governmental activities. 216,186 OPEB expense reported in the governmental funds includes the insurance premiums paid. In the statement of activities, OPEB expenses includes the change in the OPEB liability, and related change in OPEB amounts for deferred outflows of resources and deferred inflows of resources. 1,374,823 Pension expense reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. 72,155
Change in Net Position of Governmental Activities $ 23,671,833

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(28)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund
ASSETS
Current Assets:

Cash and Investments 12,154,901 $ $ 7,894,845 $ 797,341 $ 20,847,087 $ 865,616 Receivables, Net:

Accounts 1,508,658 4,814,421 60,201 6,383,280 -
Interest 67,669 - 3,735 71,404 4,475
Due from Successor Agency 176,000 - - 176,000 -
Total Current Assets 13,907,228 12,709,266 861,277 27,477,771 870,091 Noncurrent Assets:

Restricted Cash and Investments
with Fiscal Agent 883,143 200,000 - 1,083,143 -
Receivables from Successor Agency 192,770 - 192,770 - - Capital Assets, Not Depreciated 35,829,907 - 42,313 35,872,220 - Capital Assets, Depreciated, Net 23,070,834 - 234,899 23,305,733 391,306 Total Noncurrent Assets 59,976,654 200,000 277,212 60,453,866 391,306 Total Assets 73,883,882 12,909,266 1,138,489 87,931,637 1,261,397

DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to OPEB 196,766 26,077 - 222,843 -
Amount Related to Pensions 1,882,707 118,969 31,186 2,032,862 - Total Deferred Outflows of Resources 2,079,473 145,046 31,186 2,255,705 -

LIABILITIES
Current Liabilities:

Accounts Payable 1,367,819 1,605,692 102,394 3,075,905 - Accrued Interest Payable 74,983 - - 74,983 -
Accrued Liabilities 113,983 343,077 56,655 513,715 -
Unearned Revenue 14,953 - - 14,953 -
Deposits 609,557 - 609,557 - -
Retentions Payable 155,309 - 155,309 - -
Bonds Payable - Current Portion 1,190,000 - 1,190,000 - - Compensated Absences - Current Portion 28,032 1,898 - 29,929 - Total Current Liabilities 3,554,636 1,950,667 159,049 5,664,351 - Noncurrent Liabilities:

Advance from Other Funds 16,084,289 - 3,793,347 19,877,636 - Bonds Payable 7,222,506 - - 7,222,506 -
Compensated Absences 252,285 17,078 - 269,364 -
Net OPEB Liability 1,421,068 188,334 - 1,609,402 -
Net Pension Liability 6,965,407 440,145 115,378 7,520,930 - Total Noncurrent Liabilities 31,945,555 645,557 3,908,725 36,499,838 - Total Liabilities 35,500,191 2,596,224 4,067,774 42,164,189 -

DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 418,639 55,482 - 474,121 -
Amounts Related to Pensions 289,207 18,275 4,791 312,273 - Total Deferred Inflows of Resources 707,846 73,757 4,791 786,394 -

NET POSITION
Net Investment in Capital Assets 50,332,926 - 277,212 50,610,138 - Unrestricted (10,577,608) 10,384,331 (3,180,102) (3,373,379) 1,261,397 Total Net Position $ 39,755,318 $ 10,384,331 $ (2,902,890) $ 47,236,759 $ 1,261,397 Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(29)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund

OPERATING REVENUES
Charges for Services $ 10,980,819 $ 23,848,107 $ 1,073,920 $ 35,902,846 $ - Miscellaneous 8,567 157,902 - 166,469 226,950
Total Operating Revenues 10,989,386 24,006,009 1,073,920 36,069,315 226,950

OPERATING EXPENSES
Cost of Power - 17,747,976 - 17,747,976 -
Salaries and Benefits 2,374,453 243,012 81,859 2,699,324 - Contractual Services (275,385) 665,906 52,595 443,116 - Insurance Claims and Expenses 275,926 132 1,207 277,265 - Administrative 2,691,469 278,331 915,642 3,885,442 -
Utilities 436,968 - 243,745 680,713 -
Repairs and Maintenance 332,656 - 92,875 425,531 5,340
Depreciation 1,164,029 - 29,867 1,193,896 19,748
Total Operating Expenses 7,000,116 18,935,357 1,417,790 27,353,263 25,088 OPERATING INCOME (LOSS) 3,989,270 5,070,652 (343,870) 8,716,052 201,862

NONOPERATING REVENUES
(EXPENSES)
Investment Income 274,132 136,884 12,329 423,345 14,324 Grants 2,518,595 246,661 - 2,765,256 -
Interest Expense (461,604) - - (461,604) -
Total Nonoperating
Revenues (Expenses) 383,545 2,331,123 12,329 2,726,997 14,324

INCOME (LOSS) BEFORE
CAPITAL CONTRIBUTIONS 6,320,393 5,454,197 (331,541) 11,443,049 216,186 CAPITAL CONTRIBUTIONS 56,438 - - 56,438 -
NET INCOME (LOSS) 6,376,831 5,454,197 (331,541) 11,499,487 216,186

SPECIAL ITEM
Forgiveness of Debt - - - - -
CHANGES IN NET POSITION 6,376,831 5,454,197 (331,541) 11,499,487 216,186 Net Position - Beginning of Year 33,378,487 4,930,134 (2,571,349) 35,737,272 1,045,211 NET POSITION - END OF YEAR $ 39,755,318 $ 10,384,331 $ (2,902,890) $ 47,236,759 $ 1,261,397 Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(30)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 11,387,770 $ 23,059,489 $ 1,135,311 $ 35,582,570 $ 226,950 $ Payments to Suppliers (2,699,803) (19,539,067) (1,379,676) (23,618,546) (8,200) Payments to Employees (2,862,260) (230,040) (82,471) (3,174,771) - Net Cash Provided (Used) by Operating Activities 5,825,707 3,290,382 (326,836) 8,789,253 218,750

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Grants received - 246,661 - 246,661 -
Cash Received from Other Funds - (3,383,115) 717,239 (2,665,876) - Net Cash Provided (Used) by Noncapital Activities - (3,136,454) 717,239 (2,419,215) -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets (10,392,887) - (24,245) (10,417,132) (411,054) Capital grants received 2,518,595
Principal Retired (1,125,000) - - (1,125,000) -
Interest Paid (511,775) - - (511,775) -
Net Cash Used by Capital and
Related Financing Activities (9,511,067) - (24,245) (9,535,312) (411,054)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 220,614 136,884 8,975 366,473 11,003
Net Cash Provided by Investing Activities 220,614 136,884 8,975 366,473 11,003

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 290,812 (3,464,746) 375,133 (2,798,801) (181,301) Cash and Cash Equivalents - Beginning of Year 16,502,790 7,804,033 422,208 24,729,031 1,046,917 CASH AND CASH EQUIVALENTS - END OF YEAR $ 8,094,845 13,038,044 $ 797,341 $ 21,930,230 $ 865,616 $ Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(31)
Governmental
Activities
Pico Rivera Equipment
Innovative Replacement
Water Municipal Other Internal
Operations Energy Funds Total Service Fund

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES
Operating Income (Loss) 3,989,270 $ 5,070,652 $ (343,870) $ 8,716,052 $ 201,862 $ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 1,164,029 - 29,867 1,193,896 19,748
Changes in Operating Assets, Deferred Outflows of
Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable 381,366 (946,520) 61,391 (503,763) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to OPEB (4,552) (8,799) - (13,351) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to Pensions (1,192,501) (64,908) (19,683) (1,277,092) - Increase (Decrease) in Accounts Payable 646,549 (846,722) (93,499) (293,672) (2,860) Increase (Decrease) in Accrued Liabilities (29,065) 79,260 1,332 51,527 - Increase (Decrease) in Unearned 4,095 - - 4,095 -
Increase (Decrease) in Deposits Payable 12,923 - (1,800) 11,123 - Increase (Decrease) in Retentions Payable 115,282 - - 115,282 - Increase (Decrease) in Net OPEB Liability (42,227) 56,802 - 14,575 - Increase (Decrease) in Net Pension Liability 2,203,465 67,163 36,017 2,306,645 - Increase (Decrease) in Compensated Absences 24,527 (14,181) - 10,346 - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to OPEB (213,344) (1,325) - (214,669) - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions (1,234,110) (101,040) (20,596) (1,355,746) - Total Adjustments 1,836,437 (1,780,270) 17,034 73,201 16,888 Net Cash Provided (Used) by Operating Activities 5,825,707 $ 3,290,382 $ (326,836) $ 8,789,253 $ 218,750 $ Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

FIDUCIARY FUND

DESCRIPTION OF FIDUCIARY FUND
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(32)
Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, and other governmental units.

Successor Agency to the City of Pico Rivera Redevelopment Agency Private-Purpose Trust Fund accounts for the activities of the Successor Agency to the Pico Rivera Redevelopment Agency.

CITY OF PICO RIVERA, CALIFORNIA

FIDUCIARY FUND

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
See accompanying Notes to Financial Statements.
(33)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and Investments $ 5,713,882
Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 1,958
Accounts Receivable 1,026
Interest Receivable 37,322
Loans Receivable 322,627
Capital Assets:

Capital Assets, Not Depreciated 258,023
Capital Assets, Depreciated, Net 52,291
Total Assets 6,387,129

DEFERRED OUTFLOWS OF RESOURCES
Loss on Refunding 553,069

LIABILITIES
Accounts Payable 2,080
Accrued Liabilities 2,369
Interest Payable 12,545
Payable to City of Pico Rivera 48,282,876
Payable to Pico Rivera Housing Assistance Agency 1,513,398 Payable to the County of Los Angeles 45,939,514
Bond payable 9,970,000
Total Liabilities 105,722,782

NET POSITION
Held in Trust for Successor Agency (98,782,584)
Total Net Position $ (98,782,584)

CITY OF PICO RIVERA, CALIFORNIA

FIDUCIARY FUND

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2023
See accompanying Notes to Financial Statements.
(34)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund

ADDITIONS
Taxes $ 3,824,139
Contributions 1,065,000
Sale of Property 90,838
Investment Earnings 123,024
Total Additions 5,103,001

DEDUCTIONS
Administrative Expenses 248,090
Interest 1,983,308
Depreciation 4,765
Total Deductions 2,236,163
CHANGE IN NET POSITION 2,866,838
Net Position - Beginning of Year (101,649,422)
NET POSITION - END OF YEAR $ (98,782,584)
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CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(35)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES A. Description of the Reporting Entity
The City of Pico Rivera (the City) was incorporated in January 1958 under the general laws of the state of California. The City is a full-service city and operates under a City Council-Manager form of government.

The Pico Rivera Public Financing Authority (the Financing Authority) was formed as a joint powers authority between the City and the Pico Rivera Redevelopment Agency (the former RDA). Its purpose is to assist in the financing of public capital improvements or projects whenever there are significant public benefits.

The Pico Rivera Water Authority (the Water Authority) was formed as a joint powers authority between the City and the former RDA. Its purpose is to assist the City in its financing objectives by leasing and financing improvements to the City’s water supply and distribution system.

The Pico Rivera Housing Assistance Agency (the Agency) was formed to provide safe and sanitary dwelling accommodations in the City to low- and moderate-income individuals.

The City is the primary government unit. Component units are those entities that are financially accountable to the primary government, either because the City appoints a voting majority of the component unit’s board, or because the component unit provides a financial benefit or imposes a financial burden on the City.

The Water Authority and Financing Authority (collectively, the Authorities) and the Agency have been accounted for as “blended” component units of the City. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City’s operations. Accordingly, the balances and transactions of the Authorities and Agency are reported within the funds of the City. The activities of the Financing Authority are included in the City’s General Fund. Separate financial statements are not available. The activities of the Water Authority are reported in the Water Operations Enterprise Fund. Separate financial statements of the Water Authority may be obtained at City Hall. The activities of the Agency are reported in two Special Revenue Funds (Housing Agency Section 8 Special Revenue Fund and Low and Moderate Income Housing Fund). Separate financial statements are not available.

The following specific criteria were used in determining that the Authorities and the Agency are blended component units.

The members of the City Council also act as the governing body of the Authorities and the Agency.

The Authorities and the Agency are managed by employees of the City. A portion of the City’s salary and overhead expenses are billed to the Agency each year.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(36)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Description of the Reporting Entity (Continued)
The former Pico Rivera Redevelopment Agency was dissolved effective February 1, 2012, as a result of Assembly Bill x1 26 (the Dissolution Act). It is no longer considered to be a component unit of the City. On January 10, 2012, the City accepted a fiduciary role as the Successor Agency to serve as the custodian for the assets and to wind down the affairs of the former RDA. Successor Agency activity is reported in a fiduciary private-purpose trust fund.

The City’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s more significant accounting policies are described below.

B. Government-Wide and Fund Financial Statements
The statement of net position and statement of activities (i.e., the government-wide financial statements) display information on all of the nonfiduciary activities of the primary government (the City) and its blended component units. Eliminations have been made to minimize the effect of interfund activity. These statements distinguish between the City’s governmental and business-type 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 charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for each function of the City’s governmental activities and for each segment of the City’s business-type activities. Direct expenses are those that are specifically associated with a program or function and are clearly identifiable to a particular function. Program revenues include (1) charges paid by the recipients of goods or services offered by the functions or programs and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(37)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year that the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements have been satisfied. Operating expenses for proprietary 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.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of “available spendable resources.”
Under the modified accrual basis of accounting, 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 period.

Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims payable, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term liabilities are reported as other financing sources.

Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, and transient occupancy taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. Amounts owed to the City, which are not available, are recorded as receivables and deferred inflows of resources.

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Long-term receivables in governmental funds are reported on the balance sheets in spite of their spending measurement focus.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(38)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
These long-term receivables relate to grant-funded revolving loan programs and are offset by amounts due to the granting agencies since the funding will revert to them upon conclusion of the loan programs.

The City’s fiduciary fund financial statements include a Private-Purpose Trust Fund. The Private-Purpose Trust Fund is reported using the “economic resources measurement focus” and the “accrual basis of accounting.”
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with a self-balancing set of accounts established for the purpose of carrying out specific activities or attaining certain objectives in accordance with applicable regulations, restrictions, or limitations. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund and accounts for all the financial resources of the general government, except those required to be accounted for in another fund.

The Housing Agency Section 8 Special Revenue Fund accounts for rental assistance expenditures incurred to assist very low and low-income families in meeting their housing needs. Funds are provided by the U.S. Department of Housing and Urban Development.

The American Rescue Plan Special Revenue Fund accounts for funds received from the U.S. (federal) government for expenditures incurred to address the continued impact of COVID-19 (i.e., coronavirus disease 2019) on the economy, public health, state and local governments, individuals, and businesses.

The 2018 Series A COP Capital Projects Fund accounts for activity related to the City’s capital projects that are financed with the 2018 Series A Certificates of Participation that were issued in the current fiscal year.

The City reports the following major enterprise funds:

The Water Operations Fund accounts for the operation and maintenance of the City’s water treatment, water transmission, and distribution system.

The Pico Rivera Innovative Municipal Energy (PRIME) Fund accounts for the operations of the City’s Community Choice Aggregation Program, which allows residents to choose their electric power provider and the source of their electricity.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(39)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Additionally, the City reports the following fund types:

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

Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities.

Proprietary Funds
Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises. Costs are financed or recovered primarily through user charges.

Internal Service Fund accounts for the financing of services relating to equipment replacement provided to one department from another on a cost-reimbursement basis.

Fiduciary Fund
Private-Purpose Trust Fund accounts for the Los Angeles County-Auditor Controller’s semiannual property tax distributions from the Redevelopment Property Tax Trust Fund of the Successor Agency of the former Pico Rivera Redevelopment Agency to pay amounts due on enforceable obligations of the former Pico Rivera Redevelopment Agency and to pay for specified administrative costs.

D. New Accounting Pronouncements
GASB 96
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This standard defines a subscription-based information technology arrangement (SBITA); establishes that a SBITA results in a rightto-use subscription asset (an intangible asset) and a corresponding subscription liability; provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and requires note disclosure regarding SBITA. This statement had no effect on the City.

E. Investments
Investments are recorded at fair value (quoted market price or best available estimate thereof). Fair value 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.

Interest earned on cash and investments is credited to the fund, which holds the investment.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(40)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Property Taxes
Property taxes include assessments on both secured and unsecured property. Secured property taxes are attached as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments by December 10 and April 10.

The County of Los Angeles (the County) bills and collects the property taxes and remits them to the City in installments during the year. The City records property taxes as revenue when received from the County, except for property taxes received within 60 days after fiscal year-end, which are accrued at June 30.

The County is permitted by State of California law (Article XIII A of the California Constitution) to levy taxes at 1% of full fair value (at the time of purchase) and can increase the property’s value at no more than 2% per year. The City receives a share of this basic levy.

G. Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation, and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the governmentwide financial statements as “internal balances.” The principal portion of advances between funds, as reported in the fund financial statements, is offset by a nonspendable fund balance in the General Fund to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs costs, charges the appropriate benefiting fund, and then reduces its related costs as a reimbursement. All other interfund transactions are treated as transfers.

H. Inventories and Prepaid Items
Inventories are recorded as expenditures when consumed rather than when purchased.

These inventories are valued at cost and consist of expendable materials and supplies.

When payments to vendors reflect costs applicable to future accounting periods, they are recorded as prepaid items and the expense is recorded using the consumption method.

Inventories and prepaid items are offset by a nonspendable fund balance in the governmental funds to indicate that they are not available for appropriation and are not expendable financial resources.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(41)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Restricted Assets
Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets in the financial statements because their use is limited by applicable bond covenants.

J. Capital Assets
Capital assets, which include lands, buildings, improvements, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets are recorded at the lower of actual historical cost or acquisition value (as of the date donated for contributed assets). The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend lives are not capitalized.

Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Building and Structures 40 Years
Improvements Other than Buildings 40 Years
Furniture and Equipment Up to 25 Years
Infrastructure Up to 60 Years
It is the City’s policy to capitalize all land, building, improvements, and equipment with an estimated useful life greater than one year, except assets costing less than $5,000, and to capitalize infrastructure assets costing $50,000 or more. Costs of assets sold or retired (and related amounts of accumulated depreciation) are eliminated from the accounts in the year of sale or retirement and the resulting gain or loss is included in the operating statement of the related fund. In governmental funds, the sale of capital assets is included in the statement of revenues, expenditures, and changes in fund balances as proceeds from sale.

Right-to-use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

SBITA assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term.

SBITA assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(42)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Land Held for Resale
Land held for resale is carried at the lower of acquisition cost or fair value.

L. Compensated Absences
Employees accrue vacation and sick leave benefits. An employee may accumulate vacation leave up to 320 hours and sick leave up to 800 hours. Beginning annually in June, an employee with accumulated sick leave may choose to take any or all of the fiscal year’s accumulated sick leave as cash provided it does not exceed 81 hours. Each year in December, employees may opt to cash out any or all vacation leave that exceeds 150 hours. Employees must maintain a balance of 150 hours on the books.

All leave pay (vacation and sick) is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if these amounts have matured as a result of employee resignations and retirements. The adopted reserve policies (see Note 12) provide for an assignment of fund balance in the General Fund for overall “leave liability” above and beyond the liability recorded in the financial statements.

M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has the following items that qualify for reporting in this category:
 Deferred amount on refunding reported in the government-wide statement of net position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
 Deferred outflow related to pensions and OPEB, which are equal to the employer contributions made after the measurement date of the net pension liability and net OPEB liability.
 Deferred outflows related to pensions resulting changes in actuarial assumptions.

These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions through the plans.
 Deferred outflows related to pensions and OPEB resulting from the difference in projected and actual earnings on investments of the pension and OPEB plan fiduciary net position. These amounts are amortized over five years.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(43)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources.

This separate financial statement element, deferred inflows of resources, represents an acquisition of net asset that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The City has the following that qualify for reporting in this category:
 Deferred inflows from unavailable revenues, which is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: taxes, investment income, and grants. These amounts are unavailable and will be recognized as an inflow of resources in the period that the amounts become available.
 Deferred inflows related to OPEB resulting changes in actuarial assumptions.

These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided OPEB through the plan.
 Deferred inflows related to pensions and OPEB resulting from the difference between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions and OPEB through the plans.

N. Long-Term Obligations
In the government-wide financial statements and proprietary fund types fund financial statements, long-term debt and other long-term obligations are included as liabilities.

Bond premiums and discounts are amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, when paid. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as an expenditure.

O. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(44)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Postemployment Benefits Other Than Pensions (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 OPEB Plan and additions to/deductions from the OPEB Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the City’s OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Q. Fund Balances
Fund balance is the difference between the assets, deferred outflows of resources, liabilities, and deferred inflows of resources reported in the City’s governmental funds.

There are generally limitations on the purpose for which all or a portion of the resources of a governmental fund may be used. The force behind these limitations can vary significantly, depending upon their source. Consequently, the fund balance reported in the annual financial statements is categorized into five components whereby each component identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the fund can be spent.

The fund balances reported on the fund statements consist of the following categories:

Nonspendable – This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted – This classification includes amounts that can be spent only for specific purposes stipulated by constitution and external resource providers or through enabling legislation.

Committed – This classification includes amounts that can be used only for the specific purposes determined by the City Council through the adoption of a resolution prior to the end of the year. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken to remove or revise the limitation.

Assigned – This classification includes amounts to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed.

Through the adoption of a resolution to approve the City’s fund balance policy, the City Council has authorized the City Manager to assign fund balance. In governmental funds, other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed.

Unassigned – This classification includes the residual balance for the government’s General Fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(45)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Fund Balances (Continued)
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply the restricted fund balance first.

When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply the committed fund balance first, then the assigned fund balance, and finally the unassigned fund balance.

R. Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is classified in the following categories:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the City’s practice to consider restricted - net position to have been depleted before unrestricted - net position is applied; however, it is at the City Council’s discretion.

S. Statement of Cash Flows
For purposes of the statement of cash flows, cash equivalents are defined as investments with original maturities of 90 days or less, which are readily convertible to known amounts of cash and not subject to significant changes in value from interest rate fluctuations.

T. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumption that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and related disclosures. Actual results could differ from those estimates.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(46)
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2023 are classified in the accompanying financial statements as follows:

Government Fiduciary
Wide Funds Total
Unrestricted Assets:

Cash and Investments $ 116,254,183 $ 5,713,882 $ 121,968,065 Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 7,912,528 1,958 7,914,486 Escrow Deposits 2,339 - 2,339
Total Cash and Investments $ 124,169,050 $ 5,715,840 $ 129,884,890 Statement of Net Position
Cash and investments at June 30, 2023 consisted of the following:

Cash on Hand $ 6,295
Deposits with Financial Institutions 15,679,660
Investments 114,198,935
Total Cash and Investments $ 129,884,890
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(47)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City’s Investment Policy (Continued)
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity Allowed* in One Issuer U.S. Treasury Obligations 5 Years 20% None
U.S. Government Sponsored
Agency Securities 5 Years 20% None
Banker’s Acceptance Notes 180 Days 20% 5%
Municipal Securities 5 Years 30% 5%
Commercial Paper 270 Days 25% 5%
Corporate Medium Term Notes 5 Years 30% 5%
Collateralized Mortgage Obligations 5 Years 20% 5%
Negotiable Certificates of Deposit 5 Years 30% 5%
Money Market Mutual Funds N/A 20% 10%
Supranational Securities N/A 20% 10%
Local Government Investment Pool N/A None None
Local Agency Investment Fund N/A None 75,000,000 $
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.

N/A - Not Applicable
Investments Authorized by Debt Agreements
Investments of debt proceeds held by a bond trustee are governed by the provisions of debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held by a bond trustee include U.S. Treasury Obligations, U.S. Government Sponsored Agency Securities, Certificates of Deposit, Commercial Paper, Local Agency Bonds, Banker’s Acceptance Notes, Money Market Mutual Funds, Investment Contracts, and Repurchase Agreements. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker’s Acceptance Notes, which are limited to one year.

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

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(48)
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 (including investments held by a bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
Local Agency Investment Fund 75,195,173 $ - $ - $ 75,195,173 $ U.S. Government Sponsored
Agency Securities 3,070,079 189,354 707,112 3,966,545
U.S. Treasury Notes 5,663,782 2,889,344 6,181,602 14,734,728 Money Market Mutual Funds 184,301 - - 184,301
Collateralized Mortgage Obligations 164,759 - 1,392,836 1,557,595 Supranational 506,671 634,795 - 1,141,466
Medium-Term Notes 2,165,641 1,941,658 5,597,341 9,704,640 Held by Fiscal Agent:

Money Market Mutual Funds 6,425,767 - - 6,425,767
PARS Trust Pooled Investments 1,288,720 - - 1,288,720
Total 94,664,893 $ 5,655,151 $ 13,878,891 $ 114,198,935 $ Remaining Maturity (in Months)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements and the actual rating, as reported by Standard & Poor’s, as of year-end for each investment type:

Minimum
Legal Total as of Not
Investment Type Rating June 30, 2023 AAA AA+ AA Other Rated Local Agency Investment Fund N/A 75,195,173 $ - $ - $ - $ - $ 75,195,173 $ U.S. Government Sponsored
Agency Securities N/A 3,966,545 - 3,966,545 - - -
U.S. Treasury Notes* N/A 14,734,728 - - - - 14,734,728
Money Market Mutual Funds N/A 184,301 184,301 - - - -
Supranational A 1,141,466 1,141,466 - - - -
Collateralized Mortgage Obligations A 1,557,595 947,072 - - - 610,523 Certificates of Deposits - - -
Medium-Term Notes A 9,704,640 1,731,505 389,388 1,030,298 5,719,306 834,143 Held by Fiscal Agent:

Money Market Mutual Funds N/A 6,425,767 6,425,767 - - - - PARS Trust Pooled Investments N/A 1,288,720 - - - - 1,288,720 Total 114,198,935 $ 10,430,111 $ 4,355,933 $ 1,030,298 $ 5,719,306 $ 92,663,287 $ Rating as of Fiscal Year-End
* U.S. Treasury Notes are not required to be rated.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(49)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk (Continued)
The ratings for the “Other” category above are as follows:

Total as of
Investment Type June 30, 2023 A+ A AMedium-Term Notes 5,719,306 $ 2,312,099 $ 2,540,222 $ 866,985 $ Rating as of Fiscal Year-End
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments other than the following provision for deposits.

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2023, the City and the Successor Agency deposits (bank balances) were insured by the Federal Deposit Insurance Corporation and the remaining balances were collateralized under California law.

For investments identified herein as held by fiscal agent, the trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.

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

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(50)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and Investments – Pension Trust
The City established a trust account with Public Agency Retirement Services (PARS) to hold assets that are legally restricted for use in administering the City’s pension plans. The Pension Trust’s specific cash and investments are managed by a third-party portfolio manager and invested under a pool arrangement using certain investment guidelines offered by PARS and approved by the City.

Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by accounting principles generally accepted in the United States of America. 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 inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities through corroboration with market data, and Level 3 inputs are significant unobservable inputs.

Assets classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices
Level 1 Level 2 Level 3 Total
Held by Trustee:

Supranational - $ 1,141,466 $ - $ 1,141,466 $
Collateralized Mortgage Obligations - 1,557,595 - 1,557,595 Medium-Term Notes - 9,704,640 - 9,704,640
U.S. Treasury Notes - 14,734,728 - 14,734,728
U.S. Government Sponsored
Agency Securities - 3,966,545 - 3,966,545
Total Leveled Investments - $ 31,104,974 $ - $ 31,104,974 Investments Not Subject to Fair Value Hierarchy:

Local Agency Investment Fund 75,195,173
Money Market Mutual Funds 184,301
Held by Trustee:

Money Market Mutual Funds 6,425,767
PARS Trust Pooled Investments 1,288,720
Total Investment Portfolio $ 114,198,935

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(51)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2023, is as follows:

Advances To/From Other Funds
Advances to Other Funds Advances from Other Funds Amount General Fund Water Operations Enterprise Fund $ 16,084,289 Golf Course Enterprise Fund 3,793,347
Total $ 19,877,636
In 1999, the Water Authority received an advance from the City’s General Fund in connection with the acquisition of water operation capital assets. The Water Authority is obligated to pay off this advance from surplus revenues over 50 years. No interest accrues on this advance. Payments will vary with the level of surplus revenues. No payments were made in fiscal year 2022-23. The balance of the advance at June 30, 2023, is $16,084,289.

The Authority’s current outstanding revenue bonds will be paid in full by 2033. The debt service payments will be partially funded by receipts from the receivables due from the Successor Agency, as well as operating income over the next 15 years.

Management has estimated that cash flows from these sources will exceed the debt service requirements of the revenue bonds, and any excess cash flows will be used to pay down the advance from the City. Additionally, once the outstanding revenue bonds are paid in full in fiscal year 2033, the operating income will be available to pay down the advance from the City. Management believes that the Water Authority will have the ability to pay this obligation in full prior to the advance’s original maturity date in 2049.

The General Fund made several advances to the Golf Course Enterprise Fund to fund operating expenses. No interest accrues on this advance. Payments will vary with the level of surplus revenues. No payments are expected on this advance in the near term and therefore the City has classified this advance as a noncurrent liability in the accompanying enterprise fund financial statements.

Due to/from Other Funds
The composition of interfund balances as of June 30, 2023, is as follows:

Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 2,347,765
Water Operations Enterprise Fund General Fund 176,000
Total $ 2,523,765
The amounts loaned from the General Fund are short-term loans to fund operations of the various funds.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(52)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) Transfers
Transfers Out Transfers In Amount
General Fund Other Governmental Funds (1) $ 2,378,608
Other Governmental Funds General Fund (2) 1,847,348
2018 Series A COP Capital Projects
Fund (3) 836,169
Total $ 5,062,125
(1) The General Fund transferred $2,290,695 to Other Governmental for approved capital outlays and $87,913 to Other Governmental to subsidize expenditures. (2) The Other Governmental Funds – State Gas Tax Fund and Lighting Assessment District Fund transferred $1,557,851 and $289,497, respectively to General Fund for approved street maintenance activities and capital outlays.
(3) The Other Governmental Fund – Measure M transferred $836,169 for debt service on the 2018 Series A Certificates of Participation.

NOTE 4 LONG-TERM RECEIVABLES
Low-interest home improvement loans were made under the City’s Home Loan Program.

These loans shall be due and payable in full when the borrower’s legal interest in the property, which is security for the loan, is sold, transferred, or conveyed. The outstanding principal balance at June 30, 2023 is $2,570,592 and is included in the HOME Grant Special Revenue Fund. At June 30, 2023, the City has an allowance of $845,014 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.

Loans receivable consist of low interest and no interest home improvement loans made from the Community Development Block Grant Special Revenue Fund to qualified low-income homeowners. The low-interest loans are payable in monthly installments over a period of 1 to 20 years. Those loans earning no interest are payable in one lump sum at the time the property is sold or refinanced. Payments received on these loans (principal and interest) are reloaned on a revolving basis under the Home Improvements Program. The outstanding principal balance at June 30, 2023 totaled $176,409. At June 30, 2023, the City has an allowance of $42,179 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.

Loans receivable consists of low-interest home improvement loans made form the CalHOME Grant Special Revenue Fund. These loans shall be due and payable in full when the borrower’s legal interest in the property, which is security for the loan, is sold, transferred, or conveyed. The outstanding principal balance at June 30, 2023 is $1,102,130.

At June 30, 2023, the City has an allowance of $146,741 against the outstanding interest receivable related to these loans, as the City cannot ensure the collectability of this balance.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(53)
NOTE 4 LONG-TERM RECEIVABLES (CONTINUED)
Home improvement loans to low- and moderate-income households have been made from the Housing Agency LMIHF Special Revenue Fund. These loans are payable in 10 years or when borrowers sell their property, whichever comes first. The outstanding balances, net of an $42,209 allowance, were zero at June 30, 2023.

Loan receivable from a restaurant group, which was offered as a bridge loan for the purposes of establishing an upscale restaurant in the City was made from the Economic Sustainability Special Revenue Fund. The loan amount of $287,050 bears interest at the rate of 3% per annum. The loan matures on the earlier of (a) 45 days after the borrower requested disbursement of the allowance in accordance with a lease agreement, (b) 45 days after the borrower has delivered all required documentation as outlined in the lease agreement, or (c) 365 days from the commencement date. All sums unpaid at maturity shall thereafter bear interest at the rate of ten percent (10%) per annum. The outstanding principal and interest balance at June 30, 2023 was $287,050 and $149,283, respectively.

The City has an allowance against the outstanding principal and interest as the City cannot ensure the collectability of this loan.

Receivables from Successor Agency
Water
Other Operations
General Governmental Enterprise
Description Fund Funds Fund
Long-Term Loans to Finance Improvements
and Operations Related to and Within the
Former Redevelopment Agency's Project Areas 18,076,005 $ - $ 257,027 $ Sales Tax Deferral Loan to Allow Former
Redevelopment Agency to Meet its Debt
Service Obligations 29,949,844 - -
Loans to Make Payments to Supplemental
Educational Revenue Augmentation Fund - 1,513,398 -
Purchase of Former Redevelopment Agency's Tax
Allocation Bonds, Series 2001 Treated as a Loan
(See Note 15 for details) - - -
Subtotal 48,025,849 1,513,398 257,027
Reserve on Long-Term Loans - (4,519,002) (64,257)
Reserve on Sales Tax Deferral Loan - (29,949,844) -
Total 13,557,003 $ 1,513,398 $ 192,770 $

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(54)
NOTE 5 CAPITAL AND LEASE ASSETS
Governmental Activities
Capital and leased asset activity for the year ended June 30, 2023, was as follows:

Balance at Balance at
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital Assets, Not Being
Depreciated:

Land 118,908,710 $ 1,787,654 $ - $ - $ 120,696,364 $
Construction in Progress 22,684,844 18,889,636 (710) (5,263,214) 36,310,556 Total Capital Assets, Not
Being Depreciated 141,593,554 20,677,290 (710) (5,263,214) 157,006,920 Capital Assets, Being Depreciated
and Amortized
Structures and Improvements 25,590,725 - - - 25,590,725 Furniture and Equipment 7,291,797 942,279 (304,386) (240,089) 7,689,601 Infrastructure 247,089,714 - 5,263,214 252,352,928
Right to Use Asset - Equipment 111,108 - - - 111,108
Total Capital Assets, Being
Depreciated and Amortized 280,083,344 942,279 (304,386) 5,023,125 285,744,362 Less Accumulated Depreciation for:

Structures and Improvements (13,120,992) (555,867) - - (13,676,859) Furniture and Equipment (5,971,704) (239,483) 304,386 183,651 (5,723,150) Infrastructure (139,006,383) (5,661,694) - - (144,668,077) Less Accumulated Amortization for:

Right to Use Asset - Equipment (25,485) (25,485) - - (50,970) Total Accumulated
Depreciation (158,124,564) (6,482,529) 304,386 183,651 (164,119,056) Total Capital Assets, Being
Depreciated Amortized, Net 121,958,780 (5,540,250) - 5,206,776 121,625,306 Governmental Activities
Capital and Leased Assets 263,552,334 $ 15,137,040 $ (710) $ (56,438) $ 278,632,226 $ Depreciation expense was charged to functions of the governmental activities as follows:

General Government $ 395,487
Public Safety 9,945
Public Works 4,879,040
Parks and Recreation 1,164,219
Community Development 8,353
Total Depreciation Expense 6,457,044 $
Amortization expense was charged to general government.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(55)
NOTE 5 CAPITAL ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2023, was as follows:

Balance at Balance at
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital Assets, Not Being
Depreciated:

Land 18,174,060 $ - $ - $ - $ 18,174,060 $
Rights of Way 5,579,916 - - - 5,579,916
Construction in Progress 4,302,493 7,815,751 - - 12,118,244 Total Capital Assets, Not
Being Depreciated 28,056,469 7,815,751 - - 35,872,220
Capital Assets, Being Depreciated:

Structures and Improvements 5,228,051 1,904,300 - - 7,132,351 Utility Plant in Service 21,785,673 - - - 21,785,673
Equipment 1,473,468 697,081 - 240,089 2,410,638
Infrastructure 17,692,287 - - - 17,692,287
Total Capital Assets,
Being Depreciated 46,179,479 2,601,381 - 240,089 49,020,949 Less Accumulated Depreciation for:

Structures and Improvements (4,277,493) (51,027) - - (4,328,520) Utility Plant in Service (8,344,891) (367,624) - - (8,712,515) Equipment (1,055,025) (349,389) - (183,651) (1,588,065) Infrastructure (10,660,260) (425,856) - - (11,086,116)
Total Accumulated
Depreciation (24,337,669) (1,193,896) - (183,651) (25,715,216) Total Capital Assets,
Being Depreciated, Net 21,841,810 1,407,485 - 56,438 23,305,733 Business-Type Activities
Capital Assets, Net 49,898,279 $ 9,223,236 $ - $ 56,438 $ 59,177,953 $ Depreciation expense was charged to functions of the business-type activities as follows:

Water Operations $ 1,164,029
Sports Arena 1,718
Golf Course 28,149
Total Depreciation Expense 1,193,896 $

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(56)
NOTE 6 LONG-TERM LIABILITIES
Changes in long-term liabilities activity for the year ended June 30, 2023, were as follows:

Balance at Balance at Due Within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Governmental Activities:

Other Debt:
2016 Lease Revenue Bonds 24,960,000 $ - $ (995,000) $ 23,965,000 $ 1,030,000 $ 22,935,000 $ Bond Premium 2,278,210 - (134,028) 2,144,182 - 2,144,182 2018 Series A Certificates
of Participation 13,695,000 - (290,000) 13,405,000 300,000 13,105,000 Bond Premium 609,565 - (23,445) 586,120 - 586,120
Other Liabilities:

Lease Liability 86,524 (25,205) 61,319 25,843 35,476
Compensated Absences 1,468,505 992,004 (741,228) 1,719,281 343,856 1,375,425 Claims and Judgements 2,308,000 233,100 (351,100) 2,190,000 771,000 1,419,000 Total Governmental
Activities 45,405,804 $ 1,225,104 $ (2,560,006) $ 44,070,902 $ 2,470,699 $ 41,600,203 $ Business-Type Activities:

Other Debt:

Revenue Bonds Payable 9,305,000 $ - $ (1,125,000) $ 8,180,000 $ 1,190,000 $ 6,990,000 $ Add (Less):

Bond Premium 272,364 - 232,506 (39,858) - 232,506
Subtotal Revenue
Bonds Payable 9,577,364 - (1,164,858) 8,412,506 1,190,000 7,222,506 Other Liabilities:

Compensated Absences 288,947 156,876 (146,530) 299,293 29,929 269,364 Total Business-Type
Activities 9,866,311 $ 156,876 $ (1,311,388) $ 8,711,799 $ 1,219,929 $ 7,491,870 $ Governmental Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amounts of $1,719,281 at June 30, 2023 are expected to be paid in future years from future resources. The General Fund typically has been used in prior years to liquidate the liability for compensated absences.
2016 Lease Revenue Bonds
In July of 2016, the Finance Authority issued Lease Revenue Refunding Bonds, Series 2016 (the 2016 PFA Bonds) in the aggregate principal amount of $30,470,000. The bonds pay interest at a rate from 2.675% to 5.25% payable semiannually on March 1 and September 1, commencing on September 1, 2016. The bonds were issued to refund the City’s 2009 Lease Revenue Bonds, purchase a surety bond for the reserve requirement, purchase a municipal bond insurance policy, and pay costs of issuance of the bonds.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(57)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Governmental Activities (Continued)
2016 Lease Revenue Bonds (Continued)
Annual debt service for the 2016 PFA Bonds is as follows:

Year Ending June 30, Principal Interest Total
2024 $ 1,030,000 $ 888,775 $ 1,918,775
2025 1,065,000 860,550 1,925,550
2026 1,085,000 828,200 1,913,200
2027 1,130,000 783,900 1,913,900
2028 1,175,000 749,550 1,924,550
2029 - 2033 6,520,000 3,016,556 9,536,556
2033 - 2037 8,255,000 1,265,006 9,520,006
2038 - 2040 3,705,000 111,975 3,816,975
Total $ 23,965,000 $ 8,504,512 $ 32,469,512
2018 Series A Certificates of Participation
In August of 2018, the Pico Rivera Public Finance Authority issued Local Transportation Sales Tax Revenue Certificates of Participation, Series 2018 (2018 Series A COP), in the aggregate principal amount of $14,695,000. The certificates of participation pay interest at a rate from 3.375% to 5.000% payable semiannually on June 1 and December 1, commencing on December 1, 2018. The proceeds from the sale of the certificates of participation will be used to finance the design, acquisition, and construction of certain local roadway and street improvement projects within the jurisdiction of the City, to purchase a debt service reserve policy, and to pay costs incurred in connection with the execution, sale, and delivery of the certificates of participation.

Annual debt service for the 2018 Series A COP is as follows:

Year Ending June 30, Principal Interest Total
2024 $ 300,000 $ 531,669 $ 831,669
2025 320,000 516,669 836,669
2026 335,000 500,669 835,669
2027 350,000 483,919 833,919
2028 370,000 466,419 836,419
2029 - 2033 2,130,000 2,037,094 4,167,094
2033 - 2037 2,670,000 1,501,106 4,171,106
2038 - 2042 3,170,000 998,725 4,168,725
2043 - 2047 3,760,000 404,075 4,164,075
Total $ 13,405,000 $ 7,440,345 $ 20,845,345
Business-Type Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amount of $299,293 at June 30, 2023 is expected to be paid in future years from future resources.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(58)
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Water Authority Revenue Bonds, Series 1999 A
The Water Authority issued $17,940,000 of Revenue Bonds (Series 1999 A) dated May 1, 1999. These bonds were issued to finance the lease and improvements of the Water Operations Enterprise Fund.

The Series 1999 A bonds are due in whole or in part through May 2029 and bear interest rates ranging from 3.25% to 5.5%. Interest is payable semiannually on May 1 and November 1 of each year. The bonds are subject to optional redemption in whole or in part on any interest payment due on or after May 1, 2009, by lot, with premiums ranging from 0% to 2%.

The bond indenture requires a Water Rate Stabilization Fund to be held and maintained by the trustee for the benefit of the owners of the bonds. The Water Rate Stabilization Fund is required to have a balance of not less than $600,000. All funds in the Water Rate Stabilization Fund are pledged to secure payment of the bonds. The balance in the Water Rate Stabilization Fund at June 30, 2023, is $600,000.

Annual debt service for the Series 1999 A bonds is as follows:

Year Ending June 30, Principal Interest Total
2024 $ 1,190,000 $ 449,900 $ 1,639,900
2025 1,255,000 384,450 1,639,450
2026 1,320,000 315,425 1,635,425
2027 1,395,000 242,825 1,637,825
2028 1,470,000 166,100 1,636,100
2029 1,550,000 85,250 1,635,250
Total $ 8,180,000 $ 1,643,950 $ 9,823,950
NOTE 7 COMMITMENTS AND CONTINGENCIES
Litigation
Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying financial statements.

Grant Audit Contingencies
Under the terms of certain grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(59)
NOTE 7 COMMITMENTS AND CONTINGENCIES (CONTINUED)
Economic Development Subsidy
In order to retain the operations of a certain employer within the City, the City has entered into an economic development subsidy agreement with this employer. Under this agreement, the City is to pay the employer an amount equal to 25% of sales tax revenues generated by the employer up to a sales tax revenue threshold and 55% of sales tax revenues in excess of that threshold, payable on or before July 30 for the previous calendar years for the period from January 1, 2017 through December 31, 2027. In no event will the total payments to the employer exceed $3,280,000 for the term of the agreement. Payment on this agreement is contingent on the employer meeting certain operating covenants and other restrictive covenants; accordingly, there has been no accrual included in these financial statements. Payments made to this employer for the year ended June 30, 2023 totaled $272,364.

NOTE 8 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2023:

Deferred Deferred Pension
Pension Outflows Inflows Expense
Liability of Resources of Resources (Credit)
Miscellaneous Plan 42,732,558 $ 11,550,349 $ $ 4,089,334 (1,774,274) $ Council Plan 60,642 9,781 - 11,728
Total 42,793,200 $ 11,560,130 $ (1,774,274) $ 4,101,062 $ General Information about the Pension Plans
Plan Descriptions
CalPERS Plan
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, which is an agent multiple-employer defined benefit pension plan administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan 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.

City Council Retirement Enhancement Plan
The City also has available a supplemental retirement benefit plan for City Council members (Council Plan) elected on or after July 1, 2002. This plan is a singleemployer defined benefit pension plan administered by the Public Agency Retirement Services (PARS), who serves as the trustee for the Council Plan. As a result of California Public Employees’ Pension Reform Act (PEPRA) amendments, the City has closed this plan to any new City Council members elected or appointed on or after January 1, 2013.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(60)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Benefits Provided
CalPERS Plan
CalPERS provides service retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, which is equal to one year of full-time employment.

The City has three different retirement benefit tiers based on date of hire:

Tier I: 2.5% at 55 for employees hired on or before June 30, 2012 Tier II: 2.0% at 60 for employees hired after June 30, 2012 Tier III: 2.0% at 62 for all new members to CalPERS, as defined by Assembly Bill 340/PEPRA
All members are eligible for nonindustrial disability benefits after five years of service.

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

The CalPERS plans provisions and benefits in effect at June 30, 2022, the measurement date, are summarized as follows:

On or After
June 26, 2012,
Prior to Prior to On or After
Hire Date June 26, 2012 January 1, 2013 January 1, 2013 Benefit Formula 2.5%@55 2%@60 2%@62
Benefit Vesting Sche 5 Years of Service 5 Years of Service 5 Years of Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50 - 55 50 - 63 52 - 67
Monthly Benefits, as a Percent of
Eligible Compensati 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required Employee C 7.30% 7.30% 6.75%
Required Employer Contribution Rates:

Normal Cost Rate 9.380% 11.290% 7.860%
Payment of Unfund $ - 3,328,789 $ - $
Miscellaneous Plan
City Council Retirement Enhancement Plan
The Council Plan provides a benefit equal to 4% of final compensation times benefit service, capped at 10 years of service. This plan is a single-employer defined benefit plan. Eligibility for these benefits is defined as reaching age 55 and completing five years of continuous City Council service. Employees terminating employment with the City after five years of service but prior to age 55 will receive a deferred retirement benefit to commence at age 55.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(61)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
General Information about the Pension Plans (Continued) Benefits Provided (Continued)
City Council Retirement Enhancement Plan (Continued)
The Council Plan provisions and benefits in effect at June 30, 2022, the measurement date, are summarized as follows:

Council Plan
Prior to
Hire Date January 1, 2013
Benefit Formula 4%@55
Benefit Vesting Schedule 5 Years of Service
Benefit Payments Monthly for Life
Retirement Age 55
Monthly Benefits, as a Percent of Eligible Compensation 1.67% to 3.33% Required Employee Contribution Rates 0.0%
Required Employer Contribution Rates 33.70%
Employees Covered
As of the measurement date, the following employees were covered by the benefit terms for each plan:

Miscellaneous Council Plan
Inactive Employees or Beneficiaries
Currently Receiving Benefits 270 5
Inactive Employees Entitled to But
Not Yet Receiving Benefits 155 2
Active Employees 142 1
Total 567 8
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. The Council Plan only requires employer contributions equal to an actuarially determined rate. During the fiscal year June 30, 2023, the City contributed $4,587,084 and $3,591 to the Miscellaneous Plan and Council Plan, respectively.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(62)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability
The City’s net pension liability for each plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the CalPERS plan is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The net pension liability of the Council Plan is measured as of June 30, 2023, using an actuarial valuation date of June 30, 2021. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions
The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Council Plan
Valuation Date June 30, 2021 June 30, 2021
Measurement Date June 30, 2022 June 30, 2023
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Normal Cost
Method Method
Actuarial Assumptions:

Discount Rate 6.90% 6.50%
Inflation 2.30% 2.50%
Projected Salary Increase (1) 0.00%
Mortality Rate Table (2) (3)
Post Retirement Benefit Income (4)
(1) Varies by entry age and service.
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (3) Pre-retirement and Post-retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Agency CalPERS pension Plans after June 30, 2017. (4) Less of contract cost-of-living adjustments up to 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter.

Change of Assumptions
The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30% from the measurement date June 30, 2021 to June 30, 2022 for the CalPERS plan.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(63)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.9% for the Miscellaneous Plan and 6.5% for the Council Plan and reflects the long-term expected rate of return for each Plan net of investment expenses and without reduction for administrative expenses. The projection of cash flows used to determine the discount rate of Miscellaneous Plan assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Miscellaneous Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on the plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Additionally, the Council Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return of 6.5%.

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

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

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(64)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability (Continued)
Discount Rate (Continued)
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by CalPERS Board of Directors effective on July 1, 2015.

New
Strategic Real Return
Asset Class (a) Allocation (a) (b)
Global Equity - Cap-weighted 30.00% 4.45%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management Study.

The actuaries of the Council Plan determined that the best-estimate range for the longterm expected rate of return is determined by adding expected inflation to expected longterm real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2022.

Long-Term Long-Term
Expected Expected
Arithmetic Geometric
Target Real Rate Real Rate
Asset Class Allocation of Return (a) of Return (a)
U.S. Cash 5.00 % 0.51 % 0.49 %
U.S. Core Fixed Income 37.41 2.07 1.93
U.S. Broad Equity Market 44.24 5.56 3.90
Foreign Developed Equity 7.11 6.89 5.07
Emerging Markets Equity 4.47 9.58 6.18
U.S. REITs 1.77 6.96 4.74
Total 100.00 %
Assumed Inflation - Mean 2.32 % 2.32 %
Assumed Inflation Standard Deviation 1.42 % 1.42 %
Portfolio Real Mean Return 4.30 % 3.70 %
Portfolio Nominal Mean Return 6.62 % 6.12 %
Portfolio Standard Deviation 10.51 %
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(65)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in the Net Pension Liability
The changes in the net pension liability for the Miscellaneous Plan are as follows:

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2021
(Measurement Date) $ 95,291,367 123,686,546 $ 28,395,179 $ Changes in the Year:

Service Cost 1,902,845 - 1,902,845
Interest on the Total Pension Liability - 8,484,446 8,484,446 Differences between Expected and
Actual Experience - (2,724,330) (2,724,330)
Changes in Assumptions 4,188,315 - 4,188,315
Plan-to-Plan Resource Movement - - -
Contribution - Employer 4,024,396 - (4,024,396)
Contribution - Employee - 758,203 (758,203)
Net Investment Income - 7,209,341 (7,209,341)
Administrative Expenses - 59,361 (59,361)
Benefit Payments, Including Refunds
of Employee Contributions (6,277,953) - (6,277,953)
Net Changes 5,573,323 14,337,379 (8,764,056)
Balance at June 30, 2022
(Measurement Date) $ 86,527,311 129,259,869 $ 42,732,558 $ Increase (Decrease)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(66)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in the Net Pension Liability (Continued)
The changes in the net pension liability for the Council Plan are as follows:

Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
Balance at June 30, 2022
(Measurement Date) $ 161,224 222,887 $ 61,663 $
Changes in the Year:

Service Cost 748 - 748
Interest on the Total Pension Liability - 14,076 14,076 Differences between Actual and
Expected Experience - - -
Changes in Economic/Demographic - - -
Changes in Assumptions - - -
Changes in Benefit Terms - - -
Contribution - Employer - 3,591 (3,591)
Contribution - Employee - - -
Net Investment Income - 13,057 (13,057)
Administrative Expenses - (803) 803
Benefit Payments, Including Refunds
of Employee Contributions (14,372) (14,372) -
Net Changes 452 1,473 (1,021)
Balance at June 30, 2023
(Measurement Date) $ 162,697 223,339 $ 60,642 $
Increase (Decrease)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each pension plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
1% Decrease Current Discount 1% Increase
(5.9%) Rate (6.9%) (7.9%)
Net Pension Liability $ 59,980,815 $ 42,732,558 $ 28,501,945 Miscellaneous
1% Decrease Current Discount 1% Increase
(5.5%) Rate (6.5%) (7.5%)
Net Pension Liability $ 60,642 81,794 $ 42,889 $
Council

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(67)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Changes in the Net Pension Liability (Continued)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS and PARS financial reports, respectively.

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $4,089,334 and $11,728 for the miscellaneous and council plans, respectively. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension Contributions Subsequent to Measurement Date 4,587,084 $ - $ Differences Between Expected and Actual Experience - (1,774,274) Change in Assumptions 2,637,087 -
Net Differences Between Projected and Actual
Earnings on Plan Investments 4,326,178 -
Total Miscellaneous Plan 11,550,349 $ $ (1,774,274)
Differences Between Expected and Actual Experience - $ - $ Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments 9,781 -
Total Council Plan 9,781 $ - $
An amount of $4,587,084 reported as deferred outflows of resources related to contributions to the miscellaneous plan subsequent to the measurement date will be recognized as a reduction of the net pension liability of the miscellaneous plan in the year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30, Miscellaneous Council
2024 1,167,648 $ 2,202 $
2025 989,661 859
2026 286,457 7,308
2027 2,745,225 (588)
2028 - -
Thereafter - -
Payable to the Pension Plans
At June 30, 2023, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2023.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(68)
NOTE 9 DEFINED CONTRIBUTION PENSION PLANS
The City provides pension benefits for all of its part-time employees through a defined contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered by Nationwide Retirement Solutions. All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5% to a retirement plan, and the City Council resolved to match the employees’ contributions of 3.75%. The City’s contributions for each employee (and interest earned by the accounts) are fully vested immediately.

For the year ended June 30, 2023, the City’s payroll covered by the defined contribution plan was $1,728,604. The City made employer contributions of $64,824 (3.75% of current covered payroll), and employees contributed $64,824 (3.75% of current covered payroll).

The City also offers its employees a deferred compensation plan created in accordance with Internal Revenue Code 457. The plan, available to all City employees, permits them to defer a portion of their salaries until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The plan assets are under the participants control and are principally invested in demand deposits and mutual funds and are held in a trust for the exclusive benefit of the participants and their beneficiaries. The assets are not the property of the City and, as such, are not subject to the claims of the City’s general creditors. As a result, these assets are not reported in the financial statements.

NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
General Information about the OPEB Plan
Plan Description
The City has established an agent multiple-employer Defined Benefit Postemployment Healthcare Plan (DPHP) that provides postretirement medical benefits to retirees through the California Public Employees Medical and Hospital Care Act (PEMCHA) and managed through the California Employers’ Retiree Benefit Trust (CERBT). The plan provides retiree medical benefits to eligible retirees and their eligible dependents.

Employees must retire directly from the City under CalPERS. Employees must also meet basic retirement requirements per CalPERS. That is, employees must be at least age 50 and have at least five years of CalPERS service or qualify for a disability retirement.

The benefits received by the retired employees vary based on the date they were hired by the City. For employees hired on or before June 30, 2012, the City pays the full premium for the retiree and his/her dependents. For employees hired after June 30, 2012, the City contributes the PEMCHA minimum. The PEMCHA minimum is updated annually by the CalPERS board. Regardless of hire date, the same benefit continues to the surviving spouse.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(69)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) General Information about the OPEB Plan (Continued)
Plan Description (Continued)
The City’s obligation to pay medical costs for retirees relates only to those medical coverage costs provided through CalPERS. The City is not obligated to pay Medicare Part B premiums for those retirees who are age 65 or above and who are enrolled in a supplemental Medicare plan. When the retiree reaches age 65, the Basic Medical Plan is required to be transferred to a supplemental Medicare plan. A separate financial report is not prepared for the plan.

Employees Covered
As of the measurement date of June 30, 2022, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees or Beneficiaries
Currently Receiving Benefits 113
Inactive Employees or Beneficiaries Entitled to but
not yet Receiving Benefits 3
Active Employees 145
Total 261
Contributions
The DPHP and its contribution requirements are established by City policy and may be amended by the City Council. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2023, the City’s cash contributions were $1,068,807 in cash benefit payments and $565,000 contributions to the trust, estimated implied subsidy was $140,000 and administrative expense paid by were $3,451 resulting in total contributions of $1,777,258.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, rolled forward to June 30, 2022 using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(70)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Total OPEB Liability
Actuarial Assumptions
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.25%
Inflation 2.50%
Projected Salary Increase 2.75% per Annum, in Aggregate Expected Long-Term Investment Rate of Return 6.25%
Healthcare Cost Trend Rates 6.50% Non-Medicare/5.65% Medicare (Non-Kaiser), 4.6% Medicare (Kaiser)
Decreasing to 3.75% in 2076
Mortality Derived from CalPERS 2000-2019
Experience Study
The actuarial assumptions used in the June 30, 2021, valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City.

The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation as of June 30, 2022, the measurement date, are summarized in the following table:

New Long-Term
Strategic Expected Real
Asset Class Allocation Rate of Return
CERBT:

Global Equity 49.00 % 4.56 %
Fixed Income 23.00 1.56
TIPS 5.00 (0.08)
Commodities 3.00 1.22
REITs 20.00 4.06
Total 100.00 %

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(71)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Total OPEB Liability (Continued)
Actuarial Assumptions (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that City’s contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the DPHP’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on DPHP plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Change in Assumptions
There were no changes in assumptions in the current measurement period.

Changes in the Net OPEB Liability
The changes in the net OPEB liability are as follows:

Total Plan Net
OPEB Fiduciary OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2021
(Measurement Date) $ 6,284,780 22,726,294 $ 16,441,514 $ Changes in the Year:

Service Cost 445,755 - 445,755
Interest on the Total
OPEB Liability - 1,410,651 1,410,651
Differences Between Actual
and Expected Experience - - -
Changes in Assumptions - - -
Changes in Benefit Terms - - -
Contribution - Employer 2,159,703 - (2,159,703)
Net Investment Income - 978,822 (978,822)
Administrative Expenses - 4,268 (4,268)
Benefit Payments (1,203,248) - (1,203,248)
Net Changes 653,158 679,793 (26,635)
Balance at June 30, 2022
(Measurement Date) $ 6,258,145 23,379,452 $ 17,121,307 $ Increase (Decrease)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(72)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Changes in the Net OPEB Liability (Continued)
Change of Benefit Terms
There were no changes of benefit terms.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (5.25%) or one percentage point higher (7.25%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability 19,963,894 $ 17,121,307 $ 14,743,017 $ Sensitivity of the Net OPEB Liability to Changes in Health-Care Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (5.50% Non-Medicare/4.65% Medicare (Non-Kaiser)/4.6 Medicare (Kaiser) decreasing to 2.75%) or one percentage point higher (7.5% Non-Medicare/6.65% Medicare (Non-Kaiser)/5.6% Medicare (Kaiser) decreasing to

4.75%) than the current healthcare cost trend rates:

Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability 14,288,854 $ 17,121,307 $ 20,567,930 $ OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $188,988. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to Measurement Date $ 1,777,258 $ - Differences Between Actual and Expected Experience - (4,396,817) Change in Assumptions - (647,021)
Net Differences Between Projected and Actual Earnings
on Plan Investments 593,412 -
Total $ 2,370,670 $ (5,043,838)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(73)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
An amount of $1,777,258 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ending June 30, Amount
2024 $ (1,213,886)
2025 (1,219,034)
2026 (892,751)
2027 (610,284)
2028 (514,471)
Thereafter -
Payable to the OPEB Plan
At June 30, 2023, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.

NOTE 11 RISK MANAGEMENT
The City began its self-insured liability program with Public Risk Innovation, Solutions, and Management (PRISM) on July 1, 2017. Claims occurring prior to July 1, 2017, are fully covered by California Joint Powers Insurance Authority (CJPIA). The City is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City handled those risks with the purchase of commercial insurance. The City pays an annual premium to the PRISM pool for its general liability and workers’ compensation insurance coverage. For its general liability insurance, the City, through PRISM has a self-insured retention amount of $200,000 per occurrence. General claims above $200,000 up to $25,000,000 are shared by the pool.

For its workers’ compensation liability insurance, the City, through PRISM has a self-insured retention amount of $250,000 per occurrence. Workers’ compensation claims above $250,000 up to statutory limits are shared by the pool. The City retains a risk of loss due to the fact that actual losses may exceed estimated claims or overage amounts. The City also maintained property coverage, pollution coverage, master crime coverage and cyber liability coverage with PRISM.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(74)
NOTE 11 RISK MANAGEMENT (CONTINUED)
Claims, expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. At June 30, 2023, $890,000 has been accrued for general liability claims and $1,300,000 has been accrued for workers compensation claims. This amount represents an estimate of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience, modified for current trends, and information. While the ultimate amount of losses incurred through June 30, 2023, is dependent on future developments, based upon information from the City Attorney, the City’s claims administrators, and others involved with the administration of the programs, City management believes the accrual is adequate to cover such losses.

Changes in the claims liability amount in fiscal years ended June 30, 2023 and 2022, are as follows:

Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Liability Estimates Payments Liability
2021-2022 1,696,000 $ 923,371 $ (311,371) $ 2,308,000 $ 2022-2023 2,308,000 233,100 (351,100) 2,190,000

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(75)
NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2023, are tabulated below, followed by explanations as to the nature and purpose of each classification.

Special
Revenue Funds
Housing 2018 Other Total
Agency Series A Govt. Govt.

General Section 8 COP Funds Funds
Other Continuing Appropriations
Long-Term Receivables/Advances 26,749,564 $ - $ - $ - $ 26,749,564 $ Inventories 3,825 - - - 3,825
Prepaid Items 147,363 - - - 147,363
Restricted for:

Housing Agency 533,105 - - - 533,105
State Gas Tax - - - 3,163,955 3,163,955
HOME - - - 2,670,991 2,670,991
CalHome Grant - - - 704,503 704,503
Lighting Assessment District - - - 2,405,958 2,405,958
Park Development - - - 4,438 4,438
Prop A- - - 3,705,045 3,705,045
Prop C- - - 2,555,774 2,555,774
Measure R - - - 1,715,219 1,715,219
Measure M - - - 493,055 493,055
Measure A - - - 1 1
AQMD - - - 504,055 504,055
Economic Development
Assistance Grant - - - 979,273 979,273
Image Enhancement - - - 1,357,280 1,357,280
Sewer Maintenance - - - - -
Reach Grants - - - 877,739 877,739
Cable/PEG Support - - - 252,862 252,862
Housing Agency LMIHF - - - 2,726,708 2,726,708
Measure W - - - 1,896,687 1,896,687
Paramount/Mines Landscape
Maintenance District - - - 69,957 69,957
CASp Service 47,000 - - - 47,000
Pension Contribution 1,288,720 - - - 1,288,720
Capital Improvements - - 5,087,499 - 5,087,499
Committed to:

Emergency Reserve/
Economic Stabilization/
Stimulus 28,903,778 - - - 28,903,778
Assigned to:

OPEB Unfunded Liability - 856,070 - - 856,070
Leave Liability - 592,400 - - 592,400
Equipment Replacement 556,020 - - - 556,020
Self-insured Retention 500,000 - - - 500,000
Bond Refinancing/Reserve 1,000,000 - - - 1,000,000
Capital improvements 2,000,000 - - 13,312,296 15,312,296 Deferred Maintenance 1,000,000 - - - 1,000,000
Energy Efficiency - 1,000,000 - - 1,000,000
Economic Sustainability - 1,000,000 - - 1,000,000
Purchase Agreements 2,328,070 - - - 2,328,070
Other Continuing Appropriations 10,157,459 - - - 10,157,459 Unassigned 4,139,702 - - 2,309,782 (1,829,920)
Total Fund Balances 82,269,971 $ 533,105 $ 5,087,499 $ 37,565,876 $ 125,456,451 $ Capital
Projects Fund
Nonspendable Fund Balances
Long-term receivables/advances cannot be spent since they are not in spendable form.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(76)
NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED) Updated Reserve Policies: Committed and Assigned Fund Balances The City Council first adopted updated comprehensive reserve policies conforming to GASB Statement 54 on June 14, 2016. Annually, as part of the budget development process, these policies are updated and approved by the City Council.

The latest version of the policies reconfirmed a commitment for “Emergency Reserve/ Economic Uncertainty Reserve” and established assignments.

Committed Fund Balances
Committed funds describe a portion of the fund balance that is constrained by limitations imposed by the City Council. The City Council imposed limitation must occur no later than the close of the reporting period (i.e., end of the fiscal year) and remains binding unless removed under the same manner. A commitment is made by City Council adoption of a resolution that states the amount and purpose of the commitment.

The City Council adopted reserve policies effective June 12, 2018, that established a commitment for emergencies/economic stabilization equal to an amount calculated as 25% of the General Fund’s annual operating revenues. On July 28, 2020, the City Council adopted revised risk-based General Fund Reserve Policies, which increased the General Fund’s commitment to emergencies/economic stabilization from 25% to 50% of the General Fund’s annual operating revenues. For the fiscal year ending June 30, 2023, this commitment is equal to $28,903,778.

Generally, appropriations and access to these committed funds will be reserved for emergency situations. Examples of such emergencies include, but are not limited to the following:
 Reduction in revenue equal to or greater than 20% of adopted General Fund revenues in a given fiscal year.
 An unplanned major catastrophic event such as a natural disaster requiring expenditures over 10% of the General Fund-adopted appropriations in a given fiscal year.
 Unfunded and/or unpredictable state or federal legislative or judicial mandates.  Any other unforeseen event that causes the City to expend funds in excess of 10% of General Fund-adopted appropriations in a given fiscal year.

Assigned Fund Balances
Assigned funds describe the portion of the General Fund reserves that reflect the use of resources by the City Council intended to provide a means and source of funding for various near-term and long-term needs. This policy grants authority to assign funds to the Director of Finance. Assignment of reserves may be modified by the Director of Finance as part of the annual budget process. Use of assigned funds requires formal action by the City Council to appropriate funds in the appropriate account.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(77)
NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED) Assigned Fund Balances (Continued)
Specifically, this reserve policy establishes assignments for the following short-term and long-term needs at the various levels specified:
 OPEB Unfunded Liability
 Leave Liability
 Equipment Replacement
 Self-Insured Retention
 Bond Refinancing/Reserve
 Capital Improvement (Unfunded/Unprogrammed)
 Deferred Maintenance
 Energy Efficiency
 Economic Sustainability
For the fiscal year ended June 30, 2023, total assignments equal $20,990,019.

Unassigned Fund Balance
The General Fund may have net resources in excess of what is classified in one of the four previous categories (nonspendable, restricted, committed, or assigned). This amount is presented as the unassigned fund balance amount. Only the General Fund can report a positive unassigned fund balance. However, all governmental funds can report a negative unassigned fund balance.

This policy dictates that any amount of fund balance will be classified as “unassigned” after funding the emergency/economic stabilization reserve commitment plus the various assigned reserves made in accordance with the preceding section. This policy allows for “unassigned” funds and places no specific restrictions on their use. In general, the City Council could choose to utilize “unassigned” fund balance for one-time projects or uses in a given fiscal year. For the fiscal year ended June 30, 2023, the General Fund unassigned fund balance is $4,139,702.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(78)
NOTE 13 OTHER REQUIRED DISCLOSURES
Deficit Fund Balances or Net Position
The following funds reported deficit fund balances or net position at June 30, 2023:

Other Governmental Funds:

Community Development Block Grant Special
Revenue Fund $ 156,537
County Grants 722,827
State Grants Special Revenue Fund 219,451
Sewer Maintenance Special Revenue Fund 20,380
Transportation Development Act Special Revenue Fund 4,561 Federal Grants Special Revenue Fund 706,164
Other Enterprise Fund - Golf Course Fund 3,604,402
Management expects to eliminate the deficits with the collection of unavailable revenues or transfers from the General Fund. The Golf Course Enterprise Fund deficit will be eliminated through a combination of right-sizing of operations, improved revenue collection, and a longterm advance from the General Fund.

Excess of Expenditures Over Appropriations
Expenditures exceeded budgeted appropriations in the following funds:

Final Budget Actual Variance
Major Funds:

Housing Agency Section 8
Special Revenue Fund $ 6,104,088 $ 6,147,787 $ (43,699) Other Governmental Funds:

Economic Sustainability
Special Revenue Fund - 39,667 (39,667)
Image Enhancement
Special Revenue Fund 365 628 (263)
Federal Grants
Special Revenue Fund 2,132,731 2,135,314 (2,583)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(79)
NOTE 14 PICO RIVERA INNOVATIVE MUNICIPAL ENERGY
The City has registered as a Community Choice Aggregator (CCA) and established Pico Rivera Innovative Municipal Energy (PRIME) for the purpose of delivering electric services to certain customers located within the City of Pico Rivera. The City entered into an administrative services agreement with California Choice Energy Authority (CCEA), for administration, energy procurement, contract negotiation, contract administration, resource planning services and other services provided to the PRIME program. This contract has a term of the longer of three years from the effective date of April 11, 2017, or the longest term of any energy contract to which the CCEA is a party on behalf of the City. Payments to CCEA for the fiscal year ended June 30, 2023 totaled $661,852.

CCEA master “Take or Pay” agreements with different energy providers that PRIME uses to purchase energy to provide for future electric capacity for customers. PRIME enters into separate contracts with the providers and these contracts constitute an obligation of PRIME to purchase a set volume of electricity at a set price throughout the terms of the contracts.

During the fiscal year ended June 30, 2023, the total payments made by PRIME under the take or pay contracts was $16,865,661. At June 30, 2023, the remaining take or pay contracts for PRIME is $76,049,205 through December May 2041.

NOTE 15 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency to the City of Pico Rivera Redevelopment Agency on February 1, 2012, as a result of the dissolution of the former Redevelopment Agency.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(80)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to these assets and liabilities are as follows:

Capital Assets
Balance at Balance at
July 1, 2022 Additions Deletions June 30, 2023
Capital Assets, Not Being
Depreciated:

Land 258,023 $ - $ - $ 258,023 $
Total Capital Assets, Not
Being Depreciated 258,023 - - 258,023
Capital Assets, Being Depreciated:

Structures and Improvements 162,237 - - 162,237
Furniture and Equipment 5,110 - - 5,110
Infrastructure 50,615 - - 50,615
Total Capital Assets,
Being Depreciated 217,962 - - 217,962
Less Accumulated Depreciation:

Structures and Improvements (134,879) - (3,532) (138,411) Furniture and Equipment - (5,110) - (5,110)
Infrastructure (20,917) - (1,233) (22,150)
Total Accumulated
Depreciation (160,906) - (4,765) (165,671)
Total Capital Assets,
Being Depreciated, Net 57,056 - (4,765) 52,291
Successor Agency Activities,
Capital Assets, Net 315,079 $ $ - (4,765) $ 310,314 $
Loans Receivable
Two low-interest loans were issued by the former Redevelopment Agency for a commercial rehabilitation project. The loans bear interest rates from 1% to 3% and payments on these loans are to begin in 10-26 years from the date of the loan. The amount of the loans outstanding at June 30, 2023 is $322,627.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(81)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Payable to the City of Pico Rivera
The City had an agreement with the former Redevelopment Agency providing for the advance of funds to finance improvements and operations relating to and within the former Redevelopment Agency’s project areas. The former Redevelopment Agency had been accruing interest on the original advances at a rate of 12% per annum, which were adjusted retroactively to 7% in fiscal year 2011-12. In fiscal year 2012-13, the Department of Finance ruled that the rate for which interest was accrued on advances to former redevelopment agencies could not exceed effective LAIF rates. Therefore, the City retroactively recalculated interest using existing LAIF rates. As a result, the balance of the advance was written down by $3,916,128 during fiscal year 2012-13. At June 30, 2023, the net advance balance was $18,076,005, which included accrued interest of $8,913,435 and a 25% reserve against this balance totaling $4,519,002 due to the estimated collectability by the General Fund as a result of the winding down of the affairs of the former Redevelopment Agency.

Sales Tax Loan from the City of Pico Rivera
The City and former Redevelopment Agency entered into an agreement whereby the City will defer its portion of sales tax revenues (City Deferrals) generated within the project area and advance the monies to the former Redevelopment Agency to allow the former Redevelopment Agency to meet its debt service obligations. The former Redevelopment Agency had been accruing interest on the original deferrals at a rate of 7%. In fiscal year 2012-13, the Department of Finance ruled that the rate for which interest was accrued on advances to the former Redevelopment Agencies could not exceed effective LAIF rates. Therefore, the City retroactively recalculated interest using existing LAIF rates. As a result, the balance of the advance was written down by $6,463,413 during fiscal year 2012-13. At June 30, 2023, the balance of the City Deferrals including interest was $29,949,844.

In previous years, the sales tax loan from the City was reported as a commitment with the interest rate and outstanding balance described in the footnotes, but the sales tax loan was not recorded as a liability in the financial statements due to uncertainty as to the City’s intent to enforce collection. In March 2011, the City Council took action and approved a resolution acknowledging the receivable owed by the former Redevelopment Agency and affirming the City’s willingness to enforce collection of the amount.

Accordingly, the liability of $29,949,844 has been recorded in the statement of fiduciary net position. Under the terms of the agreement, payments are to be made by the Successor Agency to the City to the extent money is available. Due to the payment terms, the long-term nature of the loan, and management’s expectation that repayment will not begin for some time, the City has fully reserved against the receivable on the statement of net position.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(82)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Payable to the City of Pico Rivera (Continued)
Sales Tax Loan from the City of Pico Rivera (Continued) AB 1484 specifies the actions to be taken and the method of repayment for advances and loans between the Successor Agency, the City, and the Water Authority. Upon application and approval by the Successor Agency and the oversight board, loan agreements (advances) entered into by the former Redevelopment Agency and the City shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the advances were for legitimate redevelopment purposes.

The advances are to be repaid with a defined schedule over a reasonable term of years at an interest rate not to exceed the interest rate earned by the funds deposited into LAIF. The annual advance repayments are subject to certain limitations, including the requirement that 20% of all advance repayments are to be transferred to the Housing Agency Low and Moderate Income Housing Special Revenue Fund to fund Housing Successor Agency activity. Additionally, repayments are subject to a formula distribution and have a lower priority for repayment as described in AB 1484 (Health and Safety Code Section 34191.4(2)(A).

Management believes, in consultation with legal counsel, that the obligations of the Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency under the requirements of the Dissolution Act and AB 1484. The City’s position on this issue is not a position of settled law, and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would not be in favor of the City.

Payable to the Pico Rivera Housing Assistance Agency
Prior to dissolution, the former Redevelopment Agency had borrowed low- and moderate-income housing set-aside funds to make the payments to the Supplemental Education Revenue Augmentation Fund in accordance with the State of California mandate.

These loans are to be repaid to the Redevelopment Agency in its capacity as the Successor Agency. Total outstanding balance at June 30, 2023 was $1,513,398.

Although the repayment terms on these loans were due in a previous period, the City does not expect the Successor Agency to the former Redevelopment Agency to have enough residual for payment of these obligations in the near future, and therefore, this liability is considered long-term. Repayment funding availability is calculated by the Los Angeles County Auditor-Controller’s office twice a year and will be requested when substantial funds are available for the repayment of these loans.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
(83)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Payable to the Pico Rivera Water Authority
The Water Authority had an agreement with the former Redevelopment Agency dated January 15, 1990, providing for the advance of funds to finance improvements relating to and within the former Redevelopment Agency’s project areas. Interest had been accrued on these advances at a rate of 7%. In fiscal year 2012-13, the Department of Finance ruled that the rate for which interest was accrued on advance to former Redevelopment Agency could not exceed effective LAIF rates. Therefore, interest has been retroactively recalculated using LAIF rates. As a result, the balance of the advance was written down by $89,272 during fiscal year 2012-13. At June 30, 2023, the net advance balance was $257,027, which includes accrued interest of $127,027 and a 25% reserve against this balance totaling $64,257 due to the estimated collectability by the Water A as a result of the winding down of the affairs of the former Redevelopment Agency.

Tax Allocation Refunding Bonds
On December 16, 2021, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2021 (the 2021 SA TARBs), in the aggregate principal amount of $13,470,000.

These bonds were issued to refinance the 2001 Successor Agency’s Tax Allocation Refunding Bonds, Series 2001 (2001 SA TARBs).

The 2021 SA TARBs pay interest at a rate of 1.5% payable semiannually on June 1 and December 1, commencing on June 1, 2022. Annual debt service for the 2021 SA TARBs is as follows:

Year Ending June 30, Principal Interest Total
2024 3,615,000 $ 123,254 $ 3,738,254 $
2025 3,720,000 67,874 3,787,874
2026 2,635,000 19,895 2,654,895
Total 9,970,000 $ 211,023 $ 10,181,023 $
Payable to the County of Los Angeles
The former Redevelopment Agency and County entered into an agreement whereby the County will defer its share of tax increment (County Deferral) generated within the project area and remit it to the Successor Agency to meet the former Redevelopment Agency’s debt service obligations. The County Deferral accrues simple interest equal to 5% of the current year’s annual deferral amount. The County Deferral is to be repaid with the excess of property tax revenues received by the Successor Agency in excess of its debt payment requirements. The County Deferral is recorded as revenue when received. At June 30, 2023, the balance of the County Deferral including interest was $43,978,603. There is no fixed payment schedule for the repayment of the County Deferral.

Additionally, at June 30, 2023 the Successor Agency also has a payable to the County of Los Angeles for the gross proceeds received on the sale of land totaling $1,960,911.

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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (84)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period: June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Total Pension Liability:

Service Cost 1,902,845 $ 1,825,934 $ 1,776,130 $ 1,749,749 $ 1,668,403 $ 1,660,852 $ 1,410,606 $ 1,411,834 $ $ 1,447,138 Interest on Total Pension Liability 8,390,682 8,484,446 8,115,666 7,844,359 7,428,615 7,124,315 6,980,849 6,826,754 6,624,512 Differences Between Expected
and Actual Experience (2,724,330) (227,395) 2,207,380 (96,456) 1,411,957 (1,258,219) (1,495,731) (845,358) - Changes in Assumptions 4,188,315 - - - 5,943,062 (828,380) - (1,681,626) - Changes in Benefits - - - - - - - - -
Benefit Payments, Including Refunds of
Employee Contributions (6,277,953) (5,938,611) (5,747,216) (5,685,436) (5,375,555) (4,857,602) (4,769,549) (4,686,299) (4,544,162) Net Change in Total Pension Liability 4,050,610 5,573,323 4,048,124 6,116,052 4,305,040 8,612,408 2,126,175 1,025,305 3,527,488 Total Pension Liability - Beginning of Year 119,635,936 123,686,546 115,587,812 109,471,760 105,166,720 96,554,312 94,428,137 93,402,832 89,875,344 Total Pension Liability - End of Year (a) 129, $ 123,686,546 259,869 $ 119,635,936 $ 115,587,812 $ 109,471,760 $ 105,166,720 $ 96,554,312 $ 94,428,137 $ 93,402,832 $ Plan Fiduciary Net Position:

Plan-to-Plan Resource Movement - $ - $ - $ - $ $ - (171) $ - $ 12 $ $ - Contributions - Employer 3,785,703 4,024,396 3,510,945 3,152,902 2,902,032 2,552,475 2,352,483 2,240,763 2,552,214 Contributions - Employee 758,203 773,207 824,722 817,187 838,924 741,941 681,785 716,687 671,298 Net Investment Income 17,874,219 (7,209,341) 3,795,360 4,813,665 5,870,873 7,274,632 328,225 1,459,065 10,012,754 Administrative Expenses (59,361) (78,792) (107,987) (52,319) (314,561) (94,514) (39,896) (73,643) - Benefit Payments (6,277,953) (5,938,611) (5,747,216) (5,685,436) (5,375,555) (4,857,602) (4,769,549) (4,686,299) (4,544,162) Net Change in Plan Fiduciary Net Position 16,415,726 (8,764,056) 2,275,824 3,045,999 3,921,542 5,616,932 (1,446,952) (343,415) 8,692,104 Plan Fiduciary Net Position - Beginning of Year 78,875,641 95,291,367 76,599,817 73,553,818 69,632,276 64,015,344 65,462,296 65,805,711 57,113,607 Plan Fiduciary Net Position - End of Year (b) 86,527,311 $ 95,291,367 $ 78,875,641 $ 76,599,817 $ 73,553,818 $ 69,632,276 $ 64,015,344 $ 65,462,296 $ $ 65,805,711 Net Pension Liability - Ending (a)-(b) $ 28,395,179 42,732,558 $ 40,760,295 $ 38,987,995 $ 35,917,942 $ 35,534,444 $ 32,538,968 $ 28,965,841 $ $ 27,597,121 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 66.94% 77.04% 65.93% 66.27% 67.19% 66.21% 66.30% 69.32% 70.45% Covered Payroll 12,290,342 $ 11,613,022 $ 11,103,243 $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 $ $ 8,586,318 Net Pension Liability as Percentage of
Covered Payroll 347.69% 244.51% 367.10% 361.85% 360.66% 369.95% 369.01% 333.89% 321.41%

NOTES TO SCHEDULE
Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From Fiscal Year June 30, 2015 to June 30, 2016:

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense.

The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.

From Fiscal Year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From Fiscal Year June 30, 2017 to June 30, 2018:

The accounting discount rate reduced from 7.65% to 7.15% From Fiscal Year June 30, 2018 to June 30, 2019:

Demographic assumptions and inflation rate were changed in accordance with CalPERS Experience Study and Review of Actuarial Assumptions December 2017
From Fiscal Year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From Fiscal Year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.

From Fiscal Year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.

From Fiscal Year June 30, 2022 to June 30, 2023:

The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.5% to 2.3% * Fiscal year 2015 was the first year of implementation; therefore, only nine years are shown.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS

MISCELLANEOUS PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (85)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 4,587,084 $ 4,115,660 $ 3,510,945 $ 3,511,156 $ 3,152,687 $ 2,902,032 $ 2,552,475 $ 2,352,483 $ 2,240,763 Contributions in Relation to the Actuarially
Determined Contributions (4,587,084) (4,115,660) (3,510,945) (3,511,156) (3,152,687) (2,902,032) (2,552,475) (2,352,483) (2,240,763) Contribution Deficiency (Excess) - $ $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 14,458,762 $ 12,290,342 $ 11,613,022 $ 11,103,243 $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 Contributions as a Percentage of
Covered Payroll 31.73% 33.49% 30.23% 31.62% 29.26% 29.14% 26.57% 26.68% 25.83% Notes to Schedule:

Valuation Date 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1) (1) (1) (1) (1) Asset Valuation Method Market Value Market Value Market Value Market Value Market Value Market Value Market Value Market Value Market Value Inflation 2.75% 2.75% 2.75% 2.75% 2.50% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2) (2)
Investment Rate of Return 7.10% (3) 7.375% (3) 7.375% (3) 7.375% (3) 7.15% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, closed.
(2) Depending on age, service, and type of employment.
(3) Net of pension plan investment expense, including inflation. (4) 2.5% at 55 and 2% at 60 retirement age from 50-67, 2% at 62 retirement age 52-67. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by CalPERS Board of Directors. * Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

COUNCIL PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (86)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Measurement Period: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability:

Service Cost $ 748 $ 748 $ 2,351 $ 2,283 $ 6,794 $ 6,533 $ 6,809 $ 6,547 $ 6,329 Interest on Total Pension Liability 14,076 14,044 12,821 11,252 11,243 11,848 11,642 11,117 10,751 Differences Between Expected
and Actual Experience - - - - - - - (9,032) -
Changes in Economic/Demographic - - 22,057 22,367 - (16,557) - - - Changes in Assumptions - - (2,461) 2,623 - - 8,226 7,389 - Benefit Payments, Including Refunds of
Employee Contributions (14,372) (14,214) (14,492) (14,412) (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Total Pension Liability 452 578 20,276 24,113 5,638 (8,602) 16,251 5,595 6,654 Total Pension Liability - Beginning of Year 222,887 222,309 202,033 177,920 172,282 180,884 164,633 159,038 152,384 Total Pension Liability - End of Year (a) 223,339 222,887 222,309 202,033 177,920 172,282 180,884 164,633 159,038 Plan Fiduciary Net Position:

Contributions - Employer 3,591 3,591 7,183 10,774 14,227 18,648 17,266 18,647 17,957 Contributions - Employee - - - - - - - - -
Net Investment Income 13,057 (26,881) 42,720 3,916 9,833 10,214 13,784 83 2,392 Administrative Expenses (803) (959) (925) (834) (808) (762) (655) (575) (540) Benefit Payments (14,372) (14,214) (14,492) (14,412) (12,399) (10,426) (10,426) (10,426) (10,426) Net Change in Plan Fiduciary Net Position 1,473 (38,463) 34,486 (556) 10,853 17,674 19,969 7,729 9,383 Plan Fiduciary Net Position - Beginning of Year 161,224 199,687 165,201 165,757 154,904 137,230 117,261 109,532 100,149 Plan Fiduciary Net Position - End of Year (b) 162,697 161,224 199,687 165,201 165,757 154,904 137,230 117,261 109,532 Net Pension Liability - Ending (a)-(b) $ 60,642 $ 61,663 $ 22,622 $ 36,832 $ 12,163 $ 17,378 $ 43,654 $ 47,372 $ 49,506 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 72.85% 72.33% 89.82% 81.77% 93.16% 89.91% 75.87% 71.23% 68.87% Covered Payroll $ 10,655 $ 10,655 $ 9,865 $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 Net Pension Liability as Percentage of
Covered Payroll 569.14% 578.72% 229.32% 111.87% 30.82% 31.36% 75.76% 85.50% 85.92%

NOTES TO SCHEDULE
Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

The June 30, 2015, valuation reflected assumption changes (mortality, disability, and inflation) consistent with the 2014 CalPERS Experience Study. * Fiscal year 2015 was the first year of implementation; therefore, only nine years are shown.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS

COUNCIL PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (87)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution 7,715 $ 7,715 $ 7,715 $ 9,938 $ 17,226 $ 17,900 $ 18,616 $ 17,266 $ 17,957 $ Contributions in Relation to the
Actuarially Determined Contributions (3,591) (3,591) (7,183) (10,774) (14,227) (18,648) (17,266) (18,647) (17,957) Contribution Deficiency (Excess) $ 4,124 4,124 $ 532 $ $ 2,999 (836) $ $ 1,350 (748) $ $ - (1,381) $ Covered Payroll 10,655 $ 10,655 $ 9,865 $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 $ 57,622 $ Contributions as a Percentage of
Covered Payroll 33.70% 33.70% 72.81% 32.72% 36.05% 33.66% 29.96% 33.66% 31.16% Notes to Schedule:

Valuation Date 6/30/2022 6/30/2021 6/30/2019 6/30/2019 6/30/2017 6/30/2017 7/1/2015 7/1/2015 6/30/2013 Methods and Assumptions Used to
Determine Contribution Rates:

Single Employer Plan Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal Normal Normal Normal Normal Normal Amortization Method Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Closed Period Closed Period Closed Period Closed Period Closed Period Closed Period Closed Period Closed Period Closed Period Remaining Amortization Period 3-Year Fixed 3-Year Fixed 3-Year Fixed 3-Year Fixed 5-Year Fixed 5-Year Fixed 7-Year Fixed 7-Year Fixed 9-Year Fixed Asset Valuation Method Market Market Market Market Market Market Market Market Market Inflation 2.50% 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 3.00% Salary Increases 0.00% 0.00% 3.00% 3.00% 4.00% 4.00% 4.00% 4.00% 4.00% Investment Rate of Return 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 7.00% 7.00% Retirement Age 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years 55 Years Mortality (1) (1) (1) (1) (1) (1) (1) (1) (1)
(1) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2017. * Fiscal year 2015 was the first year of implementation; therefore, only nine years are shown.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (88)
Fiscal Year-End 2023 2022 2021 2020 2019 2018
Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service Cost 445,755 $ 568,492 $ 585,937 $ 605,152 $ 614,912 $ 597,000 $ Interest on Total OPEB Liability 1,410,651 1,832,841 1,790,952 1,873,005 1,792,862 1,717,000 Differences Between Expected and
Actual Experience - (5,246,807) - (2,149,380) - -
Changes in Assumptions - (412,400) (495,461) (269,581) - - Benefit Payments (1,203,248) (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Total OPEB Liability 653,158 (4,458,952) 595,702 (1,166,230) 1,211,774 1,102,000 Total OPEB Liability - Beginning of Year 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 25,442,000 Total OPEB Liability - End of Year (a) 23,379,452 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 Plan Fiduciary Net Position:

Contributions - Employer 2,159,703 1,203,599 1,288,526 1,227,833 1,199,000 5,212,000 Net Investment Income (978,822) 1,356,239 168,441 277,177 331,815 165,000 Administrative Expenses (4,268) (4,388) (5,129) (3,369) (10,734) (1,000) Benefit Payments (1,203,248) (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Plan Fiduciary Net Position (26,635) 1,354,372 166,112 276,215 324,081 4,164,000 Plan Fiduciary Net Position - Beginning of Year 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 - Plan Fiduciary Net Position - End of Year (b) 6,258,145 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 Net OPEB Liability - Ending (a)-(b) 17,121,307 $ 16,441,514 $ 22,254,838 $ 21,825,248 $ 23,267,693 $ 22,380,000 $ Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability 26.77% 27.65% 18.14% 17.92% 16.17% 15.69% Covered - Employee Payroll 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ 9,770,000 $ Net OPEB Liability as Percentage of
Covered - Employee Payroll 139.37% 126.55% 178.40% 176.94% 225.59% 229.07%

NOTES TO SCHEDULE
Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2017 to June 30, 2018:

There were no changes in assumptions.

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

Demographic assumptions were updated to CalPERS 1997-2015 Experience Study.

Mortality improvement scale was updated to Scale MP-2019 From fiscal year June 30, 2020 to June 30, 2021:

ACA excise tax removed
From fiscal year June 30, 2021 to June 30, 2022:

Discount rate was updated based on newer capital market assumptions ad inflation rate decreased 25 basis point Demographic assumptions were updated to CalPERS 2000-2019 Experience Study.

Medical trend rate decreased for Kaiser Senior Advantage and Medicare Advantage age-related claims removed Mortality improvement scale was updated to Scale MP-2021 From fiscal year June 30, 2022 to June 30, 2023:

There were no changes in assumptions.
* Fiscal year 2018 was the first year of implementation; therefore, only six years are shown.

CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (89)
2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution 1,766,000 $ 3,135,000 $ 3,065,000 $ 2,790,000 $ 2,739,000 $ 2,688,000 $ Contributions in Relation to the Actuarially
Determined Contributions (1,777,258) (2,159,703) (1,203,599) (1,288,526) (1,227,833) (1,199,000) Contribution Deficiency (Excess) (11,258) $ 975,297 $ 1,861,401 $ 1,501,474 $ 1,511,167 $ 1,489,000 $ Covered - Employee Payroll 14,315,004 $ 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 $ Contributions as a Percentage of
Covered - Employee Payroll 12.42% 17.58% 9.26% 10.33% 9.95% 11.62% Notes to Schedule:

Valuation Date 6/30/2021 6/30/2021 6/30/2019 6/30/2019 6/30/2017 6/30/2017 Methods and Assumptions Used to
Determine Contribution Rates:

Agent Multiple Employer Plan
Amortization Method
Asset Valuation Method
Inflation 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
Medical Trend
Investment Rate of Return 6.25% 6.25% 6.75% 6.75% 6.75% 6.75% Mortality
* Fiscal year 2018 was the first year of implementation; therefore, only five years are shown.

Decreasing to 4.0%
CalPERS 2000-2019 CalPERS 1997-2015 CalPERS 1997-2015
Medicare - 6.3%
Decreasing to 4.0%
Medicare - 6.3%
Decreasing to 4.0%
Medicare (Kaiser) - 4.6%
Experience Study Experience Study
Entry Age
Level Percentage of Payroll, Closed
Investment Gains and Losses Spread Over 5-Year Rolling Period Decreasing to 3.75% Decreasing to 4.0% Decreasing to 4.0% Medicare (Non-Kaiser) - 5.65%
Experience Study
Non-Medicare - 6.5% Non-Medicare - 7.25% Non-Medicare - 7.25% Decreasing to 4.0%

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (90)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 42,345,046 $ 42,358,146 $ 44,582,928 $ 2,224,782 $ Licenses and Permits 3,630,246 3,810,246 5,776,946 1,966,700 Intergovernmental 710,658 710,658 261,178 (449,480)
Charges for Services 1,430,126 1,430,126 1,561,583 131,457 Fines, Forfeitures, and Penalties 1,314,076 1,314,076 1,171,765 (142,311) Investment and Rental 242,590 242,590 1,023,396 780,806 Miscellaneous 335,416 519,496 2,117,855 1,598,359
Total Revenues 50,008,158 50,385,338 56,495,651 6,110,313

EXPENDITURES
Current:

General Government 11,096,933 12,765,090 10,960,163 1,804,927 Public Safety 12,854,647 13,398,518 12,651,644 746,874
Public Works 9,947,234 11,368,880 10,051,681 1,317,199
Parks and Recreation 6,289,561 6,957,823 5,880,692 1,077,131 Community Development 7,511,108 9,635,436 5,988,525 3,646,911 Capital Outlay - - (364,171) 364,171
Debt Service:

Principal 995,000 995,000 995,000 -
Interest and Fiscal Charges 926,250 926,250 926,250 -
Lease Principal - - 25,205 (25,205)
Lease Interest - - 1,876 (1,876)
Total Expenditures 49,620,733 56,046,997 47,845,207 8,201,790

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (5,661,659) 387,425 8,650,444 14,312,103

OTHER FINANCING SOURCES (USES)
Transfers In 1,825,300 2,114,797 1,847,348 (267,449)
Transfers Out (2,212,695) (2,378,608) (2,378,608) -
Proceeds from Bond Issuance - - 928,625 928,625
Total Other Financing
Sources (Uses) (387,395) (263,811) 397,365 661,176
NET CHANGE IN FUND BALANCE (5,925,470) 30 9,047,809 14,973,279 Fund Balance - Beginning of Year 73,222,162 73,222,162 73,222,162 - FUND BALANCE - END OF YEAR $ 67,296,692 73,222,192 $ 82,269,971 $ 14,973,279 $ Budgeted Amounts

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (91)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 5,191,400 $ 5,191,400 $ 6,172,837 $ 981,437 $ Investment and Rental - - 446 446
Miscellaneous 22,272 22,272 32,558 10,286
Total Revenues 5,213,672 5,213,672 6,205,841 992,169

EXPENDITURES
Current:

Health and Welfare 6,062,675 6,104,088 6,147,787 (43,699) NET CHANGE IN FUND BALANCE (849,003) (890,416) 58,054 948,470 Fund Balance - Beginning of Year 475,051 475,051 475,051 - FUND BALANCE - END OF YEAR $ (373,952) $ (415,365) $ 533,105 $ 948,470 Budgeted Amounts

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

AMERICAN RESCUE PLAN SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
See accompanying Note to Required Supplementary Information. (92)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

OTHER FINANCING SOURCES (USES)
Transfers Out $ (770,391) $ (770,391) $ - $ 770,391
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ (770,391) $ (770,391) $ - $ 770,391 Budgeted Amounts

CITY OF PICO RIVERA, CALIFORNIA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
(93)
NOTE 1 BUDGETARY CONTROL AND ACCOUNTING
The City of Pico Rivera (the City) adopts annual budgets for governmental funds on a basis that is the same as accounting principles generally accepted in the United States of America.

The City’s budget is a detailed operating plan, which identifies estimated costs and results in relation to estimated revenues. The budget includes (1) the programs, projects, services, and activities to be provided during the fiscal year; (2) the estimated resources (inflows) and amounts available for appropriation; and (3) the estimated charges to appropriations. The budget represents a process through which policy decisions are made, implemented, and controlled.

The following procedures establish the budgetary data reflected in the financial statements:

The budget is prepared under the City Manager’s direction and adopted by the City Council, generally prior to June 30 of each year. It is revised periodically during the year by the City Council. The budget presented in the financial statements includes the original and final amounts. The budget serves as a policy document for the deliverance of public services; however, expenditures are individually approved by the City Council. The City Manager is authorized to transfer amounts within individual fund budgets without the approval of City Council. Additional appropriations during the year may be submitted to the City Council for review and approval.

Budget information is presented for the governmental fund types. There were no budgeted appropriations for the Housing Agency Low and Moderate Income Housing Special Revenue Fund, which is used to account for all successor agency housing activities; the Park Development Special Revenue Fund, which accounts for funds received on new residential construction for the purpose of improving and/or developing the City’s park system; and the 2018 Series A COP Capital Projects Fund, which is used to account for the proceeds of the 2018 Series A Certificates of Participation and all capital expenditures paid from proceeds of the certificates. Accordingly, no budgetary comparison for these funds is presented in the financial statements. Budgeted revenue amounts represent the original budget modified by City Council-authorized adjustments during the year, which were contingent upon new or additional revenue sources. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year.

The budgets conform, in all material respects, to accounting principles generally accepted in the United States of America. Appropriations lapse at year-end.

Budgetary compliance is monitored without the use of encumbrances.

SUPPLEMENTARY INFORMATION
This page intentionally left blank.

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2023
(94)

SPECIAL REVENUE FUNDS
Special Revenue Funds account for proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes. Special Revenue Funds include the following:

Community Development Block Grant Fund accounts for funds received from the U.S. Department of Housing and Urban Development for the purpose of Housing Rehabilitation, Social Services, and qualified capital improvements.

State Gas Tax Fund accounts for the City’s proportionate share of gas tax monies collected by the state of California, which are used for street construction and maintenance.

Light Assessment District Fund accounts for monies received for lighting services deemed to benefit the properties and businesses against which the special benefit assessments are levied. The assessments are levied once a year and are collected by the Los Angeles County Tax Collector, and remitted to the City.

Park Development Fund accounts for funds received on new residential construction for the purpose of improving and/or developing the City’s park system.

Prop A Fund accounts for the ½% sales tax approved by Prop A in Los Angeles County, which is restricted for transportation programs and projects.

Prop C Fund accounts for the ½% sales tax approved by Prop C, which is restricted for transportation programs and projects.

Measure R Fund accounts for monies received and expenditures relative to Measure R projects.

Measure M Fund accounts for monies received and expenditures relative to Measure M projects.

Measure A Fund accounts for monies received and expenditures relative to Measure A projects.

HOME Grant Fund accounts for funds received from the U.S. Department of Housing and Urban Development for the purpose of housing loans and rehabilitation.

CalHOME Grant Fund accounts for funds received from the state of California for the purpose of providing home rehabilitation loans.

Air Quality Improvement Fund accounts for the additional vehicle registration fees received from the Southern California Air Quality Management District for the purpose of air pollution reduction.

County Grants Fund accounts for various Los Angeles County grants that are received for restricted expenditures for specific programs and projects.

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2023
(95)

SPECIAL REVENUE FUNDS (CONTINUED)
State Grants Fund accounts for the various state of California grants that are restricted to expenditures for specific programs and projects.

Economic Sustainability Fund accounts for funds received from the companies developing the Pico Rivera Towne Center under the terms of the improvement and reimbursement agreements with the Redevelopment Agency.

Image Enhancement Fund accounts for funds received from all developers for the enhancement of the image of the City of Pico Rivera.

Sewer Maintenance Fund accounts for direct assessments on property for annual and long-term maintenance of the sewer system.

Reach Grants Fund accounts for funds received from the state of California for the after-school learning program.

Cable/PEG Support Fund accounts for fees received that are restricted to upgrades to the City’s cable system.

Transportation Development Act Fund accounts for funds received from the state of California Department of Transportation for the development and support of public transportation needs.

Housing Agency Low and Moderate Income Housing Fund (LMIHF) accounts for assets received from dissolution of the former Pico Rivera Redevelopment Agency dedicated to low- and moderateincome housing activities pursuant to the California Health and Safety Code.

Measure W accounts for the revenues and expenditures provided to the city by the Los Angeles County Measure W Safe Clean Water Program. The revenues are a parcel tax to be utilized to increase the local water supply, improve water quality, and invest in making the City of Pico Rivera greener or more livable.

Federal Grants Fund accounts for the various federal grants that are restricted to expenditures for specific programs and projects.

CAPITAL PROJECTS FUNDS
Capital Projects Funds account for financial resources used for the acquisition or construction of major capital facilities. Capital Projects Funds include the following:

Capital Improvement Capital Projects Fund accounts for acquisition or construction of major capital facilities.

Paramount/Mines Landscape Maintenance Assessment Fund accounts for funds received for the installation and maintenance of common areas deemed to benefit the properties against which the special benefit assessments are levied.

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CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2023
(96)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
ASSETS
Cash and Investments $ - $ 4,550,447 $ 2,394,477 $ 4,415 Accounts Receivable 619,139 - 349 -
Taxes Receivable - 379,400 60,123 -
Interest Receivable - 24,111 13,274 23
Long-Term Receivables 176,409 - - -
Prepaid Items - - - -
Receivables from Successor Agency - - - -
Total Assets $ 795,548 $ 4,953,958 $ 2,468,223 $ 4,438

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 483,483 $ 1,771,946 $ 49,921 $ -
Accrued Liabilities - 6,782 12,344 -
Retention Payable - 11,275 - -
Due to Other Funds 135,657 - - -
Unearned Revenue - - - -
Due to Other Agencies 176,409 - - -
Total Liabilities 795,549 1,790,003 62,265 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 156,536 - - -

FUND BALANCES (DEFICITS)
Restricted - 3,163,955 2,405,958 4,438
Assigned - - - -
Unassigned (156,537) - - -
Total Fund Balances (Deficits) (156,537) 3,163,955 2,405,958 4,438 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 795,548 $ 4,953,958 $ 2,468,223 $ 4,438 Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(97)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ 3,793,840 $ 3,546,918 $ 2,533,447 $ 596,794 $ 2,660,371 1 $ $ 704,503 13,373 74,713 1,630,626 - - 6 -
- - - - - - -
19,443 18,557 13,278 3,348 - 10,614 -
- - - - 2,570,592 - 1,102,130
- - - 2,627 - - -
- - - - - - -
$ 3,826,656 $ 3,640,188 $ 4,177,351 $ 602,769 $ 5,241,583 1 $ $ 1,806,633 $ 116,377 $ 937,195 $ 565,099 $ 109,318 $ - $ - $ -
5,234 5,136 5,125 396 - - -
67,370 - 288,401 - - - -
- - - - - - -
- - - - - - -
- - - - - 2,570,592 1,102,130
121,611 1,009,701 858,625 109,714 - 2,570,592 1,102,130 - 74,713 1,603,507 - - - -
3,705,045 2,555,774 1,715,219 493,055 2,670,991 1 704,503 - - - - - - -
- - - - - - -
3,705,045 2,555,774 1,715,219 493,055 2,670,991 1 704,503 $ 3,826,656 $ 3,640,188 $ 4,177,351 $ 602,769 $ 5,241,583 1 $ $ 1,806,633 Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(98)
Air
Quality County State Economic
Improvement Grants Grants Sustainability
ASSETS
Cash and Investments 501,762 $ 17,334 $ 476,607 $ 974,237 $ Accounts Receivable - 1,748,150 1,158,741 -
Taxes Receivable - - - -
Interest Receivable 2,526 - 640 5,036
Long-Term Receivables - - - -
Prepaid Items - - - -
Receivables from Successor Agency - - - -
Total Assets $ 504,288 $ 1,765,484 $ 1,635,988 $ 979,273

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 233 $ 243,296 $ 196,024 $ -
Accrued Liabilities - 5,351 1,981 -
Retention Payable - - - -
Due to Other Funds - 1,500,360 - -
Unearned Revenue - - 1,077,759 -
Due to Other Agencies - - - -
Total Liabilities 1,749,007 233 1,275,764 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 739,304 579,675 -

FUND BALANCES (DEFICITS)
Restricted 504,055 - - 979,273
Assigned - - - -
Unassigned - (722,827) (219,451) -
Total Fund Balances (Deficits) 504,055 (722,827) (219,451) 979,273 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 504,288 $ 1,765,484 $ 1,635,988 $ 979,273 Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(99)
Transportation
Image Sewer Reach Cable/PEG Development
Enhancement Maintenance Grants Support Act
$ - 1,351,423 $ 956,742 $ 252,331 $ - $
- - - - 123,513
- - - 531 28,110
- 6,120 4,648 - -
- - - - -
- - - - -
- - - - -
$ - 1,357,543 $ 961,390 $ 252,862 $ 151,623 $
$ 7,190 263 $ 75,454 $ - $ 683 $
- - 8,197 - 936
- - - - -
13,190 - - - 31,054
- - - - -
- - - - -
20,380 263 83,651 - 32,673
- - - - 123,511
- 1,357,280 877,739 252,862 -
- - - - -
- - (20,380) - (4,561)
1,357,280 877,739 (20,380) 252,862 (4,561)
$ - 1,357,543 $ 961,390 $ 252,862 $ 151,623 $
Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(100)
Total
Housing Special
Agency Measure Federal Revenue
LMIHF W Grants Funds
ASSETS
Cash and Investments 1,207,075 $ 1,911,417 $ 15,158 $ 28,449,299 $ Accounts Receivable - - 662,997 6,031,607
Taxes Receivable - - - 468,164
Interest Receivable - 9,932 - 131,550
Long-Term Receivables 6,235 - - 3,855,366
Prepaid Items - 2,627 - 5,254
Receivables from Successor Agency - 1,513,398 - 1,513,398 Total Assets 2,726,708 $ 1,923,976 $ 678,155 $ 40,454,638 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable - $ 27,289 $ 343,893 $ 4,927,664 $
Accrued Liabilities - - - 51,482
Retention Payable - - 15,585 382,631
Due to Other Funds - - 442,860 2,123,121
Unearned Revenue - - - 1,077,759
Due to Other Agencies - - - 3,849,131
Total Liabilities - 27,289 802,338 12,411,788

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 581,981 3,859,227

FUND BALANCES (DEFICITS)
Restricted 2,726,708 1,896,687 - 26,013,543
Assigned - - - -
Unassigned - - (706,164) (1,829,920)
Total Fund Balances (Deficits) 1,896,687 2,726,708 24,183,623 (706,164) Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 2,726,708 $ 1,923,976 $ 678,155 $ 40,454,638 $ Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2023
(101)
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance Projects Governmental
Improvement Assessment Funds Funds
$ 69,600 13,602,083 $ 13,671,683 $ 42,120,982 $
- 24,250 24,250 6,055,857
- - - 468,164
357 - 357 131,907
- - - 3,855,366
- - - 5,254
- - - 1,513,398
$ 69,957 13,626,333 $ 13,696,290 $ 54,150,928 $
$ - 89,367 $ 89,367 $ 5,017,031 $
- 26 26 51,508
- - - 382,631
- 224,644 224,644 2,347,765
- - - 1,077,759
- - - 3,849,131
- 314,037 314,037 12,725,825
- - - 3,859,227
69,957 - 69,957 26,083,500
- 13,312,296 13,312,296 13,312,296
- - - (1,829,920)
69,957 13,312,296 13,382,253 37,565,876
$ 69,957 13,626,333 $ 13,696,290 $ 54,150,928 $
Capital Projects Funds

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2023
(102)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development

REVENUES
Taxes and Assessments - $ - $ 2,083,313 $ - $
Intergovernmental 1,579,782 2,944,884 - -
Charges for Services - - - -
Investment and Rental - 79,540 33,636 2,413
Miscellaneous - - - -
Total Revenues 1,579,782 3,024,424 2,116,949 2,413

EXPENDITURES
Current:

General Government - - - -
Public Works - 122,491 731,406 -
Parks and Recreation - - - -
Health and Welfare - - - -
Community Development 144,702 - - -
Capital Outlay 1,589,855 2,724,019 - 227,000
Total Expenditures 1,734,557 2,846,510 731,406 227,000

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 177,914 (154,775) 1,385,543 (224,587)

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - (1,557,851) - (289,497)
Total Other Financing
Sources (Uses) - (1,557,851) - (289,497)
NET CHANGE IN FUND BALANCES (154,775) 1,096,046 (1,379,937) (224,587) Fund Balances (Deficits) - Beginning of Year 4,543,892 (1,762) 1,309,912 229,025 FUND BALANCES (DEFICITS) - END OF YEAR $ 3,163,955 (156,537) $ 2,405,958 $ 4,438 $ Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
(103)
Prop Prop Measure Measure Measure HOME CalHOME
A C R M A Grant Grant
$ - - $ - $ - $ - $ - $ - $
1,376,974 1,660,062 1,328,314 1,167,903 1 - -
- - - - - - -
61,183 62,490 40,229 17,402 - 78,475 -
- 15,030 - - - 13,217 1,200
1,438,157 1,737,582 1,368,543 1,185,305 1 91,692 1,200
- - - - - - -
312,423 1,352,122 76,743 243,697 - - -
- - - - - - -
- - - - - - -
- - - - - - -
1,724,869 - 1,259,308 - - - -
2,037,292 1,352,122 1,336,051 243,697 - - -
385,460 32,492 (599,135) 941,608 1 91,692 1,200
- - - - - - -
- - - - (836,169) - -
- - - - (836,169) - -
385,460 32,492 (599,135) 105,439 1 91,692 1,200
3,154,909 3,319,585 1,682,727 387,616 - 2,579,299 703,303 $ 2,555,774 3,705,045 $ 1,715,219 $ 493,055 $ 1 $ 2,670,991 $ 704,503 $ Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
(104)
Air
Quality County State Economic
Improvement Grants Grants Sustainability

REVENUES
Taxes and Assessments - $ - $ - $ - $
Intergovernmental 77,122 1,077,808 1,061,298 -
Charges for Services - - - -
Investment and Rental 7,891 - 1,948 55,926
Miscellaneous - 1,855 - -
Total Revenues 85,013 1,079,663 1,063,246 55,926

EXPENDITURES
Current:

General Government - - - -
Public Works 35,485 - - -
Parks and Recreation - 647,746 - -
Health and Welfare - - 1,127,143 -
Community Development - - - 39,667
Capital Outlay - 1,047,500 - -
Total Expenditures 35,485 1,695,246 1,127,143 39,667

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 49,528 (615,583) 16,259 (63,897)

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing
Sources (Uses) - - - -
NET CHANGE IN FUND BALANCES 49,528 (615,583) 16,259 (63,897) Fund Balances (Deficits) - Beginning of Year 454,527 (107,244) 963,014 (155,554) FUND BALANCES (DEFICITS) - END OF YEAR $ (722,827) 504,055 $ (219,451) $ 979,273 $ Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
(105)
Transportation
Image Sewer Reach Cable/PEG Development
Enhancement Maintenance Grants Support Act
$ 168 - $ 22,403 $ - $ - $
- - 1,423,983 - 28,110
- 777,380 - - -
- 12,797 6,344 - -
- - - 54,077 -
168 790,177 1,452,730 54,077 28,110
- 628 - - -
- - - 32,703 27,179
- - 1,067,497 - -
- - - - -
- - - - -
- - - 69,384 -
- 628 1,067,497 102,087 27,179
168 789,549 385,233 931 (48,010)
- - - - -
- - - - -
- - - - -
168 789,549 385,233 931 (48,010)
567,731 492,506 (20,548) 300,872 (5,492)
$ (20,380) 1,357,280 $ 877,739 $ 252,862 $ (4,561) $
Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
(106)
Total
Housing Special
Agency Measure Federal Revenue
LMIHF W Grants Funds

REVENUES
Taxes and Assessments - $ - $ - $ 2,105,884 $
Intergovernmental - 896,420 1,641,424 16,264,085
Charges for Services - - - 777,380
Investment and Rental 50,310 30,794 - 541,378
Miscellaneous 7,794 - - 93,173
Total Revenues 58,104 927,214 1,641,424 19,781,900

EXPENDITURES
Current:

General Government - - - 628
Public Works - 192,525 316,314 3,443,088
Parks and Recreation - - - 1,715,243
Health and Welfare - - - 1,127,143
Community Development - - - 184,369
Capital Outlay - - 1,819,000 10,460,935
Total Expenditures - 192,525 2,135,314 16,931,406

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 734,689 58,104 2,850,494 (493,890)

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - (2,683,517)
Total Other Financing
Sources (Uses) - - - (2,683,517)
NET CHANGE IN FUND BALANCES 734,689 58,104 166,977 (493,890) Fund Balances (Deficits) - Beginning of Year 1,161,998 2,668,604 24,016,646 (212,274) FUND BALANCES (DEFICITS) - END OF YEAR $ 1,896,687 2,726,708 $ (706,164) $ 24,183,623 $ Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2023
(107)
Paramount/Mines Total Total
Landscape Capital Other
Capital Maintenance 2009 Lease Projects Governmental
Improvement Assessment Revenue Bond Funds Funds
$ 11,245 - $ - $ 11,245 $ 2,117,129 $
- - - - 16,264,085
- - - - 777,380
1,076 - - 1,076 542,454
- - - - 93,173
12,321 - - 12,321 19,794,221
- - - - 628
- - - - 3,443,088
- - - - 1,715,243
- - - - 1,127,143
- - - - 184,369
- 656,921 - 656,921 11,117,856
- 656,921 - 656,921 17,588,327
12,321 (656,921) - 2,205,894 (644,600)
- 2,378,608 - 2,378,608 2,378,608
- - - - (2,683,517)
- 2,378,608 - 2,378,608 (304,909)
12,321 1,721,687 - 1,734,008 1,900,985
57,636 11,590,609 - 11,648,245 35,664,891
$ 69,957 13,312,296 $ - $ 13,382,253 $ 37,565,876 $
Capital Projects Funds

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(108)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 1,091,484 $ 1,579,782 $ 488,298 $
Miscellaneous 50,000 - (50,000)
Total Revenues 1,141,484 1,579,782 438,298

EXPENDITURES
Current:

Community Development 271,023 144,702 126,321
Capital Outlay 1,589,855 2,036,183 446,328
Total Expenditures 2,307,206 1,734,557 572,649

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,165,722) 1,010,947 (154,775)
Fund Balance (Deficit) - Beginning of Year (1,762) - (1,762) FUND BALANCE (DEFICIT) - END OF YEAR $ (156,537) (1,167,484) $ (1,010,947) $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

STATE GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(109)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 3,264,913 $ 2,944,884 $ $ (320,029)
Investment and Rental 10,722 79,540 68,818
Total Revenues 3,275,635 3,024,424 (251,211)

EXPENDITURES
Current:

Public Works 194,825 122,491 72,334
Capital Outlay: 2,726,027 2,008 2,724,019
Total Expenditures 2,920,852 2,846,510 74,342

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 177,914 354,783 (176,869)

OTHER FINANCING USES
Transfers Out (1,825,300) 267,449 (1,557,851)
NET CHANGE IN FUND BALANCE (1,470,517) 90,580 (1,379,937) Fund Balance - Beginning of Year 4,543,892 4,543,892 -
FUND BALANCE - END OF YEAR $ 3,163,955 3,073,375 $ 90,580 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(110)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments 1,094,185 $ 2,083,313 $ 989,128 $ Investment and Rental 7,407 33,636 26,229
Total Revenues 1,101,592 2,116,949 1,015,357

EXPENDITURES
Current:

Public Works 1,183,671 731,406 452,265

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,385,543 (82,079) 1,467,622

OTHER FINANCING SOURCES (USES)
Transfers Out (289,497) - (289,497)
NET CHANGE IN FUND BALANCE 1,096,046 (371,576) 1,467,622 Fund Balance - Beginning of Year 1,309,912 1,309,912 -
FUND BALANCE - END OF YEAR $ 2,405,958 938,336 $ 1,467,622 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

PROP A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(111)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 1,540,828 $ 1,660,062 $ 119,234 $
Investment and Rental 10,465 62,490 52,025
Miscellaneous 20,000 15,030 (4,970)
Total Revenues 1,571,293 1,737,582 166,289

EXPENDITURES
Current:

Public Works 1,762,437 1,352,122 (410,315)
NET CHANGE IN FUND BALANCE 385,460 (191,144) 576,604
Fund Balance - Beginning of Year 3,319,585 3,319,585 -
FUND BALANCE - END OF YEAR $ 3,705,045 3,128,441 $ 576,604 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

PROP C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(112)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 1,278,100 $ 1,376,974 $ 98,874 $
Investment and Rental 8,435 61,183 52,748
Total Revenues 1,286,535 1,438,157 151,622

EXPENDITURES
Current:

Public Works 366,495 312,423 54,072
Public Works 1,836,224 1,724,869 111,355
Total Expenditures 2,202,719 2,037,292 165,427

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (916,184) 317,049 (599,135)
Fund Balance - Beginning of Year 3,154,909 3,154,909 -
FUND BALANCE - END OF YEAR $ 2,555,774 2,238,725 $ 317,049 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(113)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 958,600 $ 1,328,314 $ 369,714 $
Investment and Rental 3,271 40,229 36,958
Total Revenues 961,871 1,368,543 406,672

EXPENDITURES
Current:

Public Works 170,000 76,743 93,257
Capital Outlay 1,259,308 2,010,246 750,938
Total Expenditures 2,180,246 1,336,051 844,195

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 32,492 (1,218,375) 1,250,867
Fund Balance - Beginning of Year 1,682,727 1,682,727 -
FUND BALANCE (DEFICIT) - END OF YEAR $ 1,715,219 464,352 $ 1,250,867 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(114)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental $ 3,783,400 $ 1,167,903 $ (2,615,497) Investment and Rental 2,558 17,402 14,844
Total Revenues 3,785,958 1,185,305 (2,600,653)

EXPENDITURES
Current:

Public Works 569,859 243,697 326,162

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 941,608 3,216,099 (2,274,491)

OTHER FINANCING USES
Transfers Out (836,169) (836,169) -
NET CHANGE IN FUND BALANCE 2,379,930 105,439 (2,274,491) Fund Balance - Beginning of Year 387,616 387,616 -
FUND BALANCE - END OF YEAR $ 2,767,546 $ 493,055 $ (2,274,491)

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

HOME GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(115)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Investment and Rental 3,661 $ 78,475 $ 74,814 $
Miscellaneous - 13,217 13,217
Total Revenues 3,661 91,692 88,031
Fund Balance - Beginning of Year 2,579,299 2,579,299 -
FUND BALANCE - END OF YEAR $ 2,670,991 2,582,960 $ 88,031 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL
CalHOME GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(116)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Miscellaneous - $ $ 1,200 $ 1,200
Fund Balance - Beginning of Year 703,303 703,303 -
FUND BALANCE - END OF YEAR $ 703,303 $ 704,503 $ 1,200

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(117)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 80,900 $ 77,122 $ $ (3,778)
Investment and Rental 1,370 7,891 6,521
Total Revenues 82,270 85,013 (2,743)

EXPENDITURES
Current:

Public Works 77,680 35,485 42,195
NET CHANGE IN FUND BALANCE 49,528 4,590 44,938
Fund Balance - Beginning of Year 454,527 454,527 -
FUND BALANCE - END OF YEAR $ 504,055 459,117 $ 44,938 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

COUNTY GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(118)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental $ 1,110,000 $ 1,077,808 $ (32,192)
Miscellaneous 20,000 1,855 (18,145)
Total Revenues 1,130,000 1,079,663 (50,337)

EXPENDITURES
Current:

Parks and Recreation 1,448,312 647,746 800,566
Capital Outlay 1,050,000 1,047,500 2,500
Total Expenditures 2,498,312 1,695,246 803,066

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,368,312) (615,583) 752,729

OTHER FINANCING USES
Transfers In - - -
NET CHANGE IN FUND BALANCE (1,368,312) (615,583) 752,729 Fund Balance - Beginning of Year (107,244) (107,244) -
FUND BALANCE (DEFICIT) - END OF YEAR $ (1,475,556) $ (722,827) $ 752,729

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(119)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 21,488,704 $ 1,061,298 $ $ (20,427,406) Investment and Rental 448 1,948 1,500
Total Revenues 21,489,152 1,063,246 (20,425,906)

EXPENDITURES
Current:

Health and Welfare 2,064,201 1,127,143 937,058
NET CHANGE IN FUND BALANCE 19,424,951 19,488,848 (63,897) Fund Balance - Beginning of Year (155,554) - (155,554)
FUND BALANCE (DEFICIT) - END OF YEAR $ (219,451) 19,269,397 $ (19,488,848) $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(120)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Investment and Rental 3,755 $ 55,926 $ 52,171 $

EXPENDITURES
Current:

Community Development - 39,667 (39,667)
NET CHANGE IN FUND BALANCE 16,259 3,755 12,504
Fund Balance - Beginning of Year 963,014 963,014 -
FUND BALANCE - END OF YEAR $ 979,273 966,769 $ 12,504 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

IMAGE ENHANCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(121)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Charges for Services 139,432 $ 777,380 $ 637,948 $
Investment and Rental 1,102 12,797 11,695
Total Revenues 140,534 790,177 649,643

EXPENDITURES
Current:

General Government 365 628 (263)
NET CHANGE IN FUND BALANCE 789,549 140,169 649,380
Fund Balance - Beginning of Year 567,731 567,731 -
FUND BALANCE - END OF YEAR $ 1,357,280 707,900 $ 649,380 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

SEWER MAINTENANCE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(122)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments 1,600 $ 168 $ $ (1,432)

EXPENDITURES
Current:

General Government 132,879 - 132,879
Public Works 5,700 - 5,700
Total Expenditures 138,579 - 138,579
NET CHANGE IN FUND BALANCE (136,979) 168 137,147
Fund Balance (Deficit) - Beginning of Year (20,548) (20,548) - FUND BALANCE (DEFICIT) - END OF YEAR $ (157,527) $ (20,380) $ 137,147

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

REACH GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(123)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments 24,000 $ 22,403 $ $ (1,597)
Intergovernmental 1,114,410 1,423,983 309,573
Investment and Rental 1,839 6,344 4,505
Miscellaneous - - -
Total Revenues 1,140,249 1,452,730 312,481

EXPENDITURES
Current:

Parks and Recreation 1,124,125 1,067,497 56,628

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 385,233 16,124 369,109
Fund Balance - Beginning of Year 492,506 492,506 -
FUND BALANCE - END OF YEAR $ 877,739 508,630 $ 369,109 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

CABLE/PEG SUPPORT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(124)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Miscellaneous 23,000 $ 54,077 $ 31,077 $

EXPENDITURES
Current:

Public Works 37,355 32,703 4,652
Capital Outlay 69,384 69,384 -
Total Expenditures 106,739 102,087 4,652

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (83,739) 35,729 (48,010)
Fund Balance - Beginning of Year 300,872 300,872 -
FUND BALANCE - END OF YEAR $ 252,862 217,133 $ 35,729 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(125)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 80,000 $ 28,110 $ $ (51,890)

EXPENDITURES
Current:

Public Works 27,232 27,179 53

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 931 52,768 (51,837)
Fund Balance (Deficit) - Beginning of Year (5,492) - (5,492) FUND BALANCE (DEFICIT) - END OF YEAR $ (4,561) 47,276 $ 51,837 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

MEASURE W SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(126)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 954,810 $ 896,420 $ $ (58,390)
Investment and Rental - 30,794 30,794
Total Revenues 954,810 927,214 (27,596)

EXPENDITURES
Current:

Public Works 351,428 192,525 158,903
NET CHANGE IN FUND BALANCE 734,689 603,382 131,307
Fund Balance - Beginning of Year 1,161,998 1,161,998 -
FUND BALANCE - END OF YEAR $ 1,896,687 1,765,380 $ 131,307 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

FEDERAL GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2023
(127)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 6,458,823 $ 1,641,424 $ $ (4,817,399)

EXPENDITURES
Current:

Public Works 311,701 316,314 (4,613)
Capital outlay 1,819,000 1,821,030 2,030
Total Expenditures 2,132,731 2,135,314 (2,583)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,326,092 (493,890) (4,819,982)
Fund Balance (Deficit) - Beginning of Year (212,274) - (212,274) FUND BALANCE (DEFICIT) - END OF YEAR $ 4,113,818 $ (706,164) $ (4,819,982)

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2023
(128)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

EXPENDITURES
Capital Outlay $ 656,921 1,300,257 $ 643,336 $

OTHER FINANCING SOURCES (USES)
Transfers in 2,378,608 2,378,608 -
NET CHANGE IN FUND BALANCE 1,721,687 1,078,351 643,336
Fund Balance - Beginning of Year 11,590,609 11,590,609 - FUND BALANCE - END OF YEAR $ 13,312,296 12,668,960 $ 643,336 $

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE – BUDGET AND ACTUAL

PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2023
(129)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments 10,200 $ 11,245 $ 1,045 $
Investment and Rental 139 1,076 937
Total Revenues 10,339 12,321 1,982
Fund Balance - Beginning of Year 57,636 57,636 -
FUND BALANCE - END OF YEAR $ 69,957 67,975 $ 1,982 $

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF OTHER ENTERPRISE FUNDS
JUNE 30, 2023
(130)
These funds account for operations that are financed and operated in a manner similar to private business enterprises. The Whittier Narrows Recreation Area Other Enterprise Funds are as follows:

Pico Rivera Sports Arena Fund accounts for funds received from the respective private concessionaires operating each facility.

Pico Rivera Golf Course Fund records the operations of the City-owned golf course.

CITY OF PICO RIVERA, CALIFORNIA

OTHER ENTERPRISE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
(131)
Sports Golf
Arena Course Total
ASSETS
Current Assets:

Cash and Investments $ 739,257 $ 58,084 $ 797,341
Receivables, Net:

Accounts 12,954 47,247 60,201
Interest 3,735 - 3,735
Total Current Assets 755,946 105,331 861,277
Noncurrent Assets:

Capital Assets, Not Depreciated 3,368 38,945 42,313
Capital Assets, Depreciated, Net 4,361 230,538 234,899
Total Noncurrent Assets 7,729 269,483 277,212
Total Assets 763,675 374,814 1,138,489

DEFERRED OUTFLOWS OF RESOURCES
Amount Related to Pensions 20,791 10,395 31,186

LIABILITIES
Current Liabilities:

Accounts Payable - 102,394 102,394
Accrued Liabilities 2,841 53,814 56,655
Total Current Liabilities 2,841 156,208 159,049
Noncurrent Liabilities:

Advances from Other Funds 3,793,347 - 3,793,347
Net Pension Liability 38,459 76,919 115,378
Total Noncurrent Liabilities 76,919 3,831,806 3,908,725 Total Liabilities 79,760 3,988,014 4,067,774

DEFERRED INFLOWS OF RESOURCES
Amounts Related to Pensions 3,194 1,597 4,791

NET POSITION
Net Investment in Capital Assets 7,729 269,483 277,212
Unrestricted 693,783 (3,873,885) (3,180,102)
Total Net Position $ 701,512 $ (3,604,402) $ (2,902,890)

CITY OF PICO RIVERA, CALIFORNIA

OTHER ENTERPRISE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2023
(132)
Sports Golf
Arena Course Total

OPERATING REVENUES
Charges for Services $ 318,378 $ 755,542 $ 1,073,920
Other - - -
Total Operating Revenues 318,378 755,542 1,073,920

OPERATING EXPENSES
Salaries and Benefits 52,751 29,108 81,859
Contractual Services (59,325) 111,920 52,595
Insurance Claims and Expenses 1,207 - 1,207
Administrative - 915,642 915,642
Utilities 854 242,891 243,745
Repairs and Maintenance - 92,875 92,875
Depreciation 1,718 28,149 29,867
Total Operating Expenses (2,795) 1,420,585 1,417,790
OPERATING GAIN (LOSS) 321,173 (665,043) (343,870)

NONOPERATING REVENUES
Investment Income 12,329 - 12,329
CHANGE IN NET POSITION 333,502 (665,043) (331,541)
Net Position - Beginning of Year 368,010 (2,939,359) (2,571,349) NET POSITION - END OF YEAR $ 701,512 $ (3,604,402) $ (2,902,890)

CITY OF PICO RIVERA, CALIFORNIA

OTHER ENTERPRISE FUNDS

COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2023
(133)
Sports Golf
Arena Course Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users $ 408,142 $ 727,169 $ 1,135,311 Payments to Suppliers (14,775) (1,364,901) (1,379,676)
Payments to Employees (59,052) (23,419) (82,471)
Net Cash Provided (Used) by Operating Activities 334,315 (661,151) (326,836)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Proceeds from Due to/from Other Funds - 717,239 717,239 Net Cash Provided by Noncapital Financing
Activities - 717,239 717,239

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 8,975 - 8,975
Net Cash Used by Investing Activities 8,975 - 8,975

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 343,290 31,843 375,133
Cash and Cash Equivalents - Beginning of Year 395,967 26,241 422,208 CASH AND CASH EQUIVALENTS - END OF YEAR $ 739,257 $ 58,084 $ 797,341

RECONCILIATION OF OPERATING GAIN (LOSS) TO

NET CASH USED BY OPERATING ACTIVITIES
Operating Gain (Loss) $ 321,173 $ (665,043) $ (343,870) Adjustments to Reconcile Operating Gain (Loss) to Net
Cash Provided (Used) by Operating Activities:

Depreciation 1,718 28,149 29,867
Changes in Operating Assets, Deferred
Outflows of Resources, Liabilities, and
Deferred Inflows of Resources:

Increase in Accounts Receivables 89,764 (28,373) 61,391 Decrease in Inventories - 24,005 24,005
Decrease in Deferred Outflows of Resources -
Amount Related to Pensions (12,631) (7,052) (19,683)
Increase (Decrease) in Accounts Payable (72,039) (21,460) (93,499) Increase (Decrease) in Accrued Liabilities 520 812 1,332 Increase in Deposits Payable - (1,800) (1,800)
Increase (Decrease) in Net Pension Liability 20,624 15,393 36,017 Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions (14,814) (5,782) (20,596) Total Adjustments 13,142 3,892 17,034
Net Cash Provided (Used) by Operating Activities $ 334,315 $ (661,151) $ (326,836) This page is intentionally left blank.

STATISTICAL SECTION
(UNAUDITED)
This page intentionally left blank.

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2023
(134)
This part of the City of Pico Rivera’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government’s overall financial health.

Contents: Pages
Financial Trends – These schedules contain trend information that may assist the reader in understanding the City’s current financial performance by placing it in historical perspective. 135-144
Revenue Capacity – These schedules contain information that may help in assessing the viability of the City’s most significant revenue sources – property taxes, transient occupancy tax (TOT), and sales tax. 145-152 Debt Capacity – These schedules present information that may assist the reader in analyzing the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 153-158 Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 159-160 Operating Information – These schedules contain service and infrastructure indicators that may assist the reader in understanding how the information in the City’s financial report relates to the services that the City provides and the activities it performs. 161-164

CITY OF PICO RIVERA, CALIFORNIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(135)
2013-14 2014-15 2015-16 2016-17
Governmental Activities:

Net investment in capital assets 224,917,267 $ 224,650,021 $ 231,562,736 $ 223,976,465 $ Restricted 13,016,383 14,236,953 11,854,987 13,274,422
Unrestricted 43,883,873 22,142,254 23,639,282 25,960,550 Total governmental activities net position 281,817,523 261,029,228 267,057,005 263,211,437 Business-type Activities:

Net investment in capital assets 30,964,232 31,370,373 31,761,672 32,604,651 Restricted - - - -
Unrestricted (16,212,613) (18,465,237) (16,385,687) (13,590,642) Total business-type activities net position 14,751,619 12,905,136 15,375,985 19,014,009 Primary Government:

Net investment in capital assets 255,881,499 256,020,394 263,324,408 256,581,116 Restricted 13,016,383 14,236,953 11,854,987 13,274,422
Unrestricted 27,671,260 3,677,017 7,253,595 12,369,908
Total primary government net position $ 296,569,142 $ 273,934,364 $ 282,432,990 $ 282,225,446 Source: Statement of Net Position

CITY OF PICO RIVERA, CALIFORNIA

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(136)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 232,291,558 230,499,724 $ 235,399,358 $ 234,764,478 $ 237,260,527 $ 244,677,341 $ 19,565,580 16,360,144 22,661,392 23,672,803 27,978,094 31,184,653 17,860,702 18,735,128 15,000,619 23,195,137 38,557,279 51,605,739 269,717,840 265,594,996 273,061,369 281,632,418 303,795,900 327,467,733 33,680,356 33,236,723 34,129,206 36,403,397 40,280,888 50,610,138 - - - -
(10,315,352) (13,570,480) (3,505,373) (4,457,768) (4,543,616) (3,373,379) 23,365,004 19,666,243 30,623,833 31,945,629 35,737,272 47,236,759 265,971,914 263,736,447 269,528,564 271,167,875 277,541,415 295,287,479 19,565,580 16,360,144 22,661,392 23,672,803 27,978,094 31,151,411 7,545,350 5,164,648 11,495,246 18,737,369 34,013,663 482,656,002 $ 293,082,844 285,261,239 $ 303,685,202 $ 313,578,047 $ 339,533,172 $ 374,704,492 $

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(137)
2013-14 2014-15 2015-16 2016-17 2017-18
Expenses:

Governmental Activities:

General government $ 9,248,597 9,954,786 $ 8,790,816 $ 10,048,704 $ 8,190,494 $ Public safety 10,457,770 11,202,782 10,468,357 12,330,023 11,885,957 Public works 10,498,605 14,545,183 14,472,969 15,104,130 12,488,922 Parks and recreation 5,422,037 5,600,669 5,585,521 6,263,237 7,146,278 Health and welfare 5,339,488 4,840,878 5,266,352 5,587,157 5,311,548 Community development 2,761,524 2,511,556 2,827,231 2,540,908 4,407,647 Interest and fiscal charges 1,742,562 1,656,613 1,626,960 2,628,006 1,013,498 Total governmental activities net expenses 46,671,816 49,111,234 49,038,206 54,502,165 50,444,344 Business-type Activities:

Water 8,386,111 8,044,302 7,865,853 8,155,205 8,382,375 Pico Rivera Innovative Municipal Energy - - - - 4,900,927 Other enterprise funds 1,054,837 1,320,585 1,624,391 1,622,319 2,270,317 Total business-type activities net expenses 9,440,948 9,364,887 9,490,244 9,777,524 15,553,619 Total primary government expenses 56,112,764 $ 58,476,121 $ 58,528,450 $ 64,279,689 $ 65,997,963 $ Program Revenues:

Governmental Activities:

Charges for services:

General government $ 574,846 497,518 $ 606,726 $ 739,432 $ 493,265 $ Public safety 1,125,660 1,207,766 1,022,464 962,627 1,044,921 Public works 744,905 1,821,210 1,788,821 786,053 801,487 Parks and recreation 693,884 743,400 578,529 773,631 791,906 Health and welfare 188,767 232,824 202,262 174,314 198,238 Community development 644,344 712,626 746,395 873,536 1,196,287 Operating contributions and grants 13,322,885 12,236,612 12,817,403 11,093,802 16,678,586 Capital contributions and grants 2,378,797 2,287,187 1,620,798 778,116 2,874,341 Total governmental activities
program revenues 19,747,148 19,666,083 19,383,398 16,181,511 24,079,031 Business-type Activities:

Charges for services:

Water utility 8,698,444 8,909,351 8,304,240 8,819,676 9,802,992 Pico Rivera Innovative Municipal Energy - - - - 5,354,524 Other enterprise funds 921,432 996,548 1,302,652 1,478,893 1,176,972 Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues 9,830,783 9,694,992 9,606,892 10,298,569 16,334,488 Primary government program revenues 29,577,931 $ 29,361,075 $ 28,990,290 $ 26,480,080 $ 40,413,519 $ Net (Expense)/Revenue:

Governmental activities (26,924,668) $ (29,445,151) $ (29,654,808) $ (38,320,654) $ (26,365,313) $ Business-type activities 389,835 330,105 116,648 521,045 780,869 Total primary government net expense (26,534,833) $ (29,115,046) $ (29,538,160) $ (37,799,609) $ (25,584,444) $ Source: City of Pico Rivera Finance Division

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(138)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 11,832,065 10,589,517 $ 8,799,110 $ 8,089,449 $ 10,634,542 $ 12,460,600 11,998,792 12,314,336 12,144,703 12,661,589
15,688,114 16,339,812 16,834,980 14,700,643 15,857,499
7,319,903 7,958,749 6,765,477 7,457,649 8,540,605
5,508,857 5,416,605 6,248,362 6,414,485 7,274,930
5,269,424 4,194,760 4,630,014 10,891,361 5,957,282
1,527,256 1,507,430 1,486,071 1,450,395 1,394,492
59,606,219 58,404,010 57,078,350 61,148,685 62,320,939
8,743,689 8,506,305 9,503,242 9,570,530 7,461,720
12,800,550 12,944,076 16,116,785 17,222,547 18,935,357
1,411,093 1,804,018 1,980,185 1,430,189 1,417,790
22,955,332 23,254,399 27,600,212 28,223,266 27,814,867
$ 82,561,551 81,658,409 $ 84,678,562 $ 89,371,951 $ 90,135,806 $ $ 310,572 657,280 $ 415,826 $ 545,101 $ 1,161,745 $
970,410 1,114,647 1,160,968 1,163,935 1,144,044
852,467 836,847 878,464 882,256 991,248
359,398 579,751 63,530 279,041 487,136
9,104 205,328 155,361 285,648 184,645
826,524 982,241 1,240,644 1,681,960 2,003,316
13,826,068 13,168,680 16,416,848 26,561,448 22,046,380
5,855,720 3,604,445 2,986,830 5,387,593 3,207,183
23,010,263 21,149,219 23,318,471 36,786,982 31,225,697
10,376,513 9,904,084 10,641,130 11,180,400 10,989,386
16,685,058 13,581,101 14,798,777 18,030,558 24,006,009
1,056,567 1,119,812 1,841,744 1,195,085 1,073,920
- - - 476,602 246,661
- - - - 2,518,595
28,118,138 24,604,997 27,281,651 30,882,645 38,834,571
$ 51,128,401 45,754,216 $ 50,600,122 $ 67,669,627 $ 70,060,268 $ $ (36,595,956) (37,254,791) $ (33,759,879) $ (24,361,703) $ (31,095,242) $ 5,162,806 1,350,598 (318,561) 2,659,379 11,019,704
$ (31,433,150) (35,904,193) $ (34,078,440) $ (21,702,324) $ (20,075,538) $

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(139)
2013-14 2014-15 2015-16 2016-17 2017-18
General Revenues and Other Changes
in Net Position:

Governmental Activities:

Property taxes 9,269,468 $ 9,611,244 $ 10,049,454 $ 10,591,691 $ 11,173,640 $ Sales taxes 16,435,053 16,368,367 17,766,538 17,637,948 17,575,729 Franchise taxes 1,641,171 1,646,884 1,654,275 1,582,026 1,703,255 Utility users taxes 3, 3,525,036 504,363 3,385,361 3,276,321 3,142,090 Other taxes 1,710,630 1,760,876 1,850,151 1,632,337 1,807,130 Unrestricted motor vehicle license in lieu
Investment Earnings 39,582 151,636 193,684 347,422 637,086 Other 139,486 613,592 283,352 450,783 662,225
Transfers 648,626 611,727 479,232 (1,043,442) 42,027
Gain on sale of property 257,194 104,912 174,424 - -
Special Item 1,059,577 (9,075,443) (704,496) - -
Total governmental activities 24,417,848 35,606,133 35,131,975 34,475,086 36,743,182 Business-type Activities:

Investment Earnings 2,308,060 2,226,339 2,128,937 2,073,537 2,025,078 Other 95,459 12,179 - - -
Transfers (648,626) (611,727) (479,232) 1,043,442 (42,027) Gain on bond defeasance - - - - -
Extraordinary item - - 704,496 - -
Total business-type activities 1,754,893 1,626,791 2,354,201 3,116,979 1,983,051 Total primary government $ 37,232,924 26,172,741 $ 37,486,176 $ 37,592,065 $ 38,726,233 $ Change in Net Position:

Governmental activities (2,506,820) $ 6,160,982 $ 5,477,167 $ (3,845,568) $ 10,377,869 $ Business-type activities 2,144,728 1,956,896 2,470,849 3,638,024 2,763,920 Total primary government $ 8,117,878 (362,092) $ 7,948,016 $ (207,544) $ 13,141,789 $ Source: City of Pico Rivera Finance Division

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(140)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 12,259,774 11,734,058 $ 13,000,934 $ 13,831,113 $ 15,016,822 $ 19,364,272 19,468,221 21,325,436 24,551,320 25,116,979
1,787,568 1,729,336 1,876,407 1,956,998 2,063,404
3,064,500 2,939,221 3,157,258 3,567,128 4,001,578
1,690,687 1,968,094 2,055,932 1,926,617 3,867,144
1,502,934 1,528,199 542,108 (197,845) 2,035,505
269,750 1,007,091 372,853 889,854 1,793,456
- - - - (56,438)
- - - - 928,625
- - - - -
39,939,485 40,374,220 42,330,928 46,525,185 54,767,075
2,096,023 2,140,163 1,640,357 449,236 423,345
- - - - -
- - - - 56,438
- - - 683,028 -
- - - - -
2,096,023 2,140,163 1,640,357 1,132,264 479,783
$ 42,035,508 42,514,383 $ 43,971,285 $ 47,657,449 $ 55,246,858 $ $ 3,343,529 3,119,429 8,571,049 22,163,482 23,671,833
7,258,829 3,490,761 1,321,796 3,791,643 11,499,487
$ 10,602,358 6,610,190 $ 9,892,845 $ 25,955,125 $ 35,171,320 $

CITY OF PICO RIVERA, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(141)
2013-14 2014-15 2015-16 2016-17 2017-18
General Fund:

Nonspendable $ 25,222,739 $ 25,222,739 $ 25,198,662 $ 25,209,917 $ 25,168,800 Restricted 2,446,856 2,358,919 2,368,600 - -
Committed 9,330,000 9,316,732 9,479,500 9,476,700 9,665,400 Assigned 8,285,480 10,272,833 14,376,800 14,426,700 13,256,200 Unassigned 48,092 4,341,395 12,882,331 10,851,445 12,063,120 Total general fund $ 51,512,618 45,333,167 $ 64,305,893 $ 59,964,762 $ 60,153,520 $ All Other Governmental Funds:

Nonspendable - $ $ - $ - $ - $ 4,508
Restricted 10,669,538 11,366,458 11,074,536 12,927,436 15,566,814 Assigned 600,000 600,000 600,000 600,000 600,000
Unassigned (3,335,743) (2,869,762) (2,141,161) (1,749,394) (1,607,854) Total all other governmental funds $ 7,933,795 $ 9,096,696 $ 9,533,375 $ 11,778,042 $ 14,563,468 Note: Please refer to MD&A for governmental fund balance change Source: City of Pico Rivera Finance Division

CITY OF PICO RIVERA, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(142)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 22,096,478 28,002,854 $ 23,232,000 $ 26,139,104 $ 26,900,752 $ 1,087,825 1,061,066 1,372,990 1,180,688 1,335,720
10,169,300 10,284,000 20,510,328 24,517,211 28,903,778
13,991,300 14,039,900 13,717,940 14,926,791 20,990,019
17,752,704 9,067,136 14,366,714 6,458,368 4,172,944
$ 65,097,607 62,454,956 $ 73,199,972 $ 73,222,162 $ 82,303,213 $ $ - - $ - $ - $ - $
33,195,861 31,791,493 34,780,540 37,428,998 31,670,862
- 600,000 232,477 11,590,609 13,312,296
(1,257,821) (60,712) (1,046,569) (502,874) (1,829,920)
$ 31,938,040 32,330,781 $ 33,966,448 $ 48,516,733 $ 43,153,238 $

CITY OF PICO RIVERA, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(143)
2013-14 2014-15 2015-16 2016-17 2017-18
Revenues:

Taxes and Assessments 33,100,095 $ 34,083,110 $ 35,534,141 $ 34,592,924 $ 35,567,380 $ Licenses and permits 2,320,618 2,363,477 2,491,636 2,442,190 2,960,639 Intergovernmental 10,891,308 11,703,565 12,214,500 11,927,598 13,433,014 Charges for services 1,964,785 1,889,338 1,871,009 2,124,665 1,851,030 Fines, forfeitures and penalties 1,224,540 1,134,906 1,031,031 898,203 1,002,532 Investment income 244,614 336,077 341,746 488,369 812,776 Miscellaneous 1,333,203 2,535,295 785,171 538,177 5,593,359 Total revenues 51,079,163 54,045,768 54,269,234 53,012,126 61,220,730 Expenditures:

General government 6,884,398 7,183,738 6,805,810 11,819,289 12,938,296 Public safety 10,435,184 11,188,047 10,439,469 11,375,573 11,857,271 Public works 8,561,977 9,621,311 9,707,823 10,255,784 14,095,351 Parks and recreation 4,890,183 4,794,720 4,554,724 5,374,259 6,122,665 Health and welfare 5,339,488 4,840,878 5,266,352 5,587,157 5,311,548 Community development 2,730,123 2,490,769 2,787,070 3,435,809 4,367,766 Pass through to other agencies - - - - -
Loss on sale of land held for resale - - - - -
Capital outlay 5,175,862 7,719,114 7,287,913 2,453,883 1,547,832 Debt service:

Principal retirement 610,000 585,000 635,000 980,000 865,000 Interest and other charges 1,734,538 1,710,638 1,682,562 655,944 1,061,150 Lease Principal - - - - -
Lease Interest - - - - -
Bond issuance costs - - - 520,424 -
payments to refunding escrow agent - - - 2,368,685 -
Total expenditures 49,692,854 46,803,114 49,166,723 54,826,807 58,166,879 Excess (deficiency) of revenues
over (under) expenditures 1,386,309 7,242,654 5,102,511 (1,814,681) 3,053,851 Other Financing Sources (Uses):

Transfers in 11,719,264 7,618,952 19,274,660 3,986,323 3,309,866 Transfers out (12,118,893) (7,987,933) (10,488,538) (5,029,765) (3,767,839) Sale of capital assets - - - - -
- - - 30,470,000 -
Bond premium - - - 3,082,378 -
Payments to refunding escrow agent - - - (33,021,008) - Total other financing sources (uses) (399,629) (368,981) 8,786,122 (512,072) (457,973) Special Item:

Forgiveness of debt - - (90,000) - -
Net change in fund balances 986,680 6,873,673 13,798,633 (2,326,753) 2,595,878 Fund balances - July 1 52,180,282 53,166,962 60,040,635 73,839,268 72,121,110 Fund balances - June 30 53,166,962 $ 60,040,635 $ 73,839,268 $ 71,512,515 $ 74,716,988 $ Debt service as a percentage of noncapital expenditures 5.53% 5.57% 5.53% 8.64% 3.42% Bond issuance

CITY OF PICO RIVERA, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(144)
2018-19 2019-20 2020-21 2021-22 2022-23
$ 39,179,631 38,653,543 $ 39,647,861 $ 44,310,901 $ 46,700,057 $ 2,212,910 2,861,711 3,209,557 3,612,057 5,776,946
15,079,031 12,973,062 19,310,930 33,355,732 22,698,100
1,443,249 1,819,310 1,234,332 1,437,497 2,338,963
952,095 1,109,430 1,108,568 1,199,256 1,171,765
1,523,385 1,433,476 557,114 (359,384) 1,831,552
996,245 1,436,364 600,081 1,233,409 2,243,586
61,386,546 60,286,896 65,668,443 84,789,468 82,760,969
8,291,063 7,901,483 7,367,989 9,309,236 10,960,791
12,433,612 11,971,740 12,286,345 12,135,586 12,651,644
17,986,339 15,527,553 16,457,143 17,374,179 13,494,769
6,356,907 6,993,470 5,766,663 7,085,982 7,595,935
5,508,857 5,416,605 6,248,362 6,414,485 7,274,930
5,231,905 4,157,152 4,591,099 11,558,866 6,172,894
- - - - -
- - - - -
571,952 1,633,063 64,075 2,559,159 19,036,572
1,155,000 1,090,000 1,190,000 1,230,000 1,285,000
1,601,001 1,530,496 1,565,994 1,522,419 1,472,422
- - - 24,584 25,205
- - - 2,497 1,876
- 398,345 - - -
- - - - -
59,136,636 56,619,907 55,537,670 69,216,993 79,972,038
2,249,910 3,666,989 10,130,773 15,572,475 2,788,931
2,986,078 4,667,515 2,491,287 24,116,170 5,062,125
(2,986,078) (4,667,515) (2,491,287) (25,116,170) (5,062,125) - - - - 928,625
- 14,695,000 - - -
- 703,345 - - -
- - - - -
- 15,398,345 - (1,000,000) 928,625
- - - - -
2,249,910 19,065,334 10,130,773 14,572,475 3,717,556
94,785,737 75,720,403 97,035,647 107,166,420 121,738,895 $ 97,035,647 94,785,737 $ 107,166,420 $ 121,738,895 $ 125,456,451 $

6.17% 5.42% 5.46% 4.66% 4.74%

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
(145)
Transient Motor
Fiscal Property Sales Occupancy Vehicle
Year Taxes Tax Tax In-Lieu Tax
2013-14 9,269,468 $ 16,435,053 $ 367,804 $ 28,547 $
2014-15 9,611,244 16,368,367 390,666 27,575
2015-16 10,049,454 17,766,538 417,938 25,896
2016-17 10,591,691 17,637,948 422,313 28,793
2017-18 11,173,640 17,575,729 424,542 33,713
2018-19 11,734,058 19,468,221 461,474 30,845
2019-20 12,209,094 19,364,271 438,232 50,679
2020-21 12,954,453 21,325,436 433,797 46,481
2021-22 13,758,151 24,551,320 533,482 72,962
2022-23 14,953,118 25,116,980 597,129 63,705
Change from
Base Year 2013-14 61% 53% 62% 123%
Source: City of Pico Rivera Finance Division

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE (CONTINUED)

LAST TEN FISCAL YEARS
(146)
Utility Business
Franchise Users License
Tax Tax Tax Total
$ 3,504,363 1,641,171 $ 1,342,826 $ 32,589,232 $
3,525,036 1,646,884 1,370,210 32,939,982
3,385,361 1,654,275 1,432,213 34,731,675
3,276,231 1,582,026 1,210,024 34,749,026
3,142,090 1,703,255 1,382,588 35,435,557
2,939,221 1,729,336 1,454,896 37,818,051
3,064,500 1,787,568 1,209,199 38,123,543
3,157,258 1,876,407 1,611,415 41,405,247
3,567,128 1,956,998 1,393,084 45,833,126
4,001,578 2,063,404 3,270,000 50,065,914
26% 14% 144% 54%

CITY OF PICO RIVERA, CALIFORNIA

REVENUE BASE BY CATEGORY

LAST TEN FISCAL YEARS
(RATE PER $1,000 OF ASSESSED VALUE)
(147)
Total Total
Taxable Direct
Fiscal Residential Commercial Industrial Other* Tax-Exempt Assessed Tax Year Property Property Property Property Property Value Rate 2013-14 2,698,550,967 $ 528,061,894 $ 591,638,354 $ 245,353,016 $ 1,942,210 $ 4,065,546,441 $ 0.0941 2014-15 2,849,419,991 534,153,757 608,797,600 255,121,685 1,951,026 4,249,444,059 0.0938 2015-16 3,004,411,938 550,436,822 623,317,693 263,566,626 1,990,006 4,443,723,085 0.0936 2016-17 3,157,571,430 572,434,427 644,340,185 261,458,977 2,020,352 4,443,723,085 0.0933 2017-18 3,334,334,379 590,956,777 695,508,846 292,833,875 2,060,757 4,915,694,634 0.0930 2018-19 3,517,570,969 596,369,740 740,474,135 315,837,843 100,235 5,170,352,922 0.0927 2019-20 3,706,643,219 629,479,041 771,749,293 365,146,561 102,238 5,473,120,352 0.0924 2020-21 3,895,827,995 639,397,804 823,738,292 382,305,577 104,282 5,741,373,950 0.0923 2021-22 4,079,513,033 657,191,391 978,113,682 374,506,281 105,361 6,089,429,748 0.0921 2022-23 4,322,883,001 678,393,685 1,123,348,084 415,534,522 112,567 6,540,271,859 0.0918 *Other property includes recreational, institutional, vacant, and miscellaneous property.

Source: Los Angeles County Assessor 2022/23 Combined Tax Rolls

CITY OF PICO RIVERA, CALIFORNIA

PROPERTY TAX LEVIES AND TAX COLLECTIONS

LAST TEN FISCAL YEARS
(148)
Collections in Final
Fiscal Taxes Percent of Subsequent Year Percent of
Year Levied Amount Levy (Includes Refunds) Amount Levy
2013-14 $ 2,311,646 2,388,030 $ 96.80% 38,725 $ 2,350,371 $ 98.42% 2014-15 2,511,683 2,425,171 96.56% 20,888 2,446,059 97.39% 2015-16 2,552,922 2,511,115 98.36% - 2,511,115 98.36%
2016-17 2,674,309 2,638,929 98.68% - 2,638,929 98.68%
2017-18 2,840,017 2,798,898 98.55% - 2,798,898 98.55%
2018-19 2,955,805 2,914,751 98.61% - 2,914,751 98.61%
2019-20 3,169,235 3,055,052 96.40% - 3,055,052 96.40%
2020-21 3,322,924 3,261,695 98.16% - 3,261,695 98.16%
2021-22 3,496,505 3,433,991 98.21% - 3,433,991 98.21%
2022-23 4,048,127 3,903,368 96.42% 144,759 4,048,127 100.00%

NOTE: Article XIII-A of the Constitution of the State of California adopted by the electorate in June 1978, precludes the City from a local property tax levy. All general-purpose property taxes are levied by the County and allocated to other governmental entities on a predetermined formula.

Source: County Assessor General Ledger
Collected within the Total Collections to Date
Fiscal Year of Levy

CITY OF PICO RIVERA, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(149)
Agency 2013-14 2014-15 2015-16 2016-17
Basic Levy 1.00000 1.00000 1.00000 1.00000
County Detention Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 El Rancho Unified School District 0.09571 0.09907 0.09630 0.09627 LA Community College District 0.04454 0.04017 0.03575 0.03596 LA County Flood Control 0.00000 0.00000 0.00000 0.00000 Little Lake City School District 0.08537 0.07964 0.06522 0.00000 Los Nietos School District 0.02810 0.03041 0.08062 0.07063 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Montebello Unified School District 0.09457 0.08750 0.08715 0.14705 Rio Hondo Community College Dist 0.02892 0.02821 0.02712 0.02808 Whittier City School District 0.06110 0.05792 0.05757 0.05441 Whittier Union High School Dist 0.04473 0.05270 0.05063 0.06035 Total Direct & Overlapping Tax Rate 1.48654 1.47912 1.50386 1.49625 City's Share of 1% Levy Per Prop 13 0.08917 0.08917 0.08917 0.08917 City Redevelopment Rate 0.00000 0.00000 0.00000 0.00000 Total Direct Rate 0.09412 0.09381 0.09355 0.09330
(1) Overlapping rates are those of local and county governments that apply to property owners within the City.

Not all overlapping rates apply to all City property owners. (2) City's Share of 1% Levy is based on the City's share of the general fund tax rate. (3) Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information.

CITY OF PICO RIVERA, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES (CONTINUED)

LAST TEN YEARS
(150)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.19173 0.17840 0.17835 0.18754 0.15321 0.14140

0.04599 0.04621 0.02717 0.04016 0.04376 0.02488

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.08396 0.06878 0.06576 0.06442 0.05249 0.05639

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.13514 0.13921 0.09306 0.09706 0.09031 0.12770

0.02748 0.02554 0.02571 0.01361 0.01526 0.01535

0.04781 0.05534 0.05096 0.05151 0.04780 0.04848

0.05781 0.05822 0.05502 0.05433 0.05395 0.05342

1.59342 1.57521 1.49952 1.51214 1.46028 1.47110

0.08917 0.08917 0.08917 0.08917 0.08917 0.08917

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.09301 0.09280 0.09245 0.09231 0.09210 0.09184

CITY OF PICO RIVERA, CALIFORNIA

PRINCIPAL PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(151)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Paramount Pico Rivera Industrial $ 85,675,510 1.31% $ - 0.00% Vestar California XXVI LLC 80,183,990 1.23% 68,889,447 1.69% Center Point Properties Trust 65,645,880 1.00% - 0.00%
BCORE Mercury Lane Owner LLC 63,240,000 0.97% - 0.00%
Airef Pico Rivera Distribution Center 63,100,000 1.01% - 0.00% TRPF CAM Pico Rivera Venture LLC 56,500,000 0.86% - 0.00% Majestic AMB Pico Rivera 48,991,051 0.75% 41,785,092 1.03% 8540 Whittier Boulevard 42,228,439 0.65% - 0.00%
Wal-Mart Real Estate Business Trust 39,207,236 0.60% 33,235,309 0.82% Pico Rivera Holdings LVT LLC 37,875,481 0.58% - 0.00%
Iron Mountain Information - 0.00% 31,908,174 0.78%
Princeton Medical Holdings LLC - 0.00% 28,442,000 0.70% Showprop Pico Rivera LLC - 0.00% 27,930,753 0.69%
General American Life Insurance Company - 0.00% 27,664,017 0.68% GGF Pico Rivera LLC - 0.00% 26,707,159 0.66%
Bakemark Ingredients West - 0.00% 26,503,382 0.65%
Public Storage Inc - 0.00% 21,761,548 0.54%
$ 582,647,587 8.91% 334,826,881 $ 8.24%
Excludes government and tax-exempt property owners.

Total City Value for 2013-14 $ 4,065,546,441
Total City Value for 2022-23 $ 6,540,271,859
Source: Los Angeles County Assessor 2022-23 and 2013-14 Combined Tax Rolls 2022-23 2013-14

CITY OF PICO RIVERA, CALIFORNIA
TOP 25 SALES TAX PRODUCERS

CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(152)
Taxpayers Business Type Taxpayers Business Type
1 Arco AM PM Service Stations 76 Service Stations
2 Arco AM PM Service Stations Arco AM PM Service Stations 3 Bay Cities Container Light Industrial/Printers Arco AM PM Service Stations 4 Calply Building Materials Bay Cities Container Light Industrial/Printers 5 Chevron Service Stations Cal Wholesale Material Supply Building Materials 6 Chick Fil A Quick-Service Restaurants Chevron Service Stations 7 Cintas Business Services Chevron Service Stations
8 Circle K Service Stations Cintas Business Services
9 Dal Rae Fine Dining Circle K Service Stations
10 Lowes Building Materials Food 4 Less Grocery Stores
11 Marshalls Family Apparel Home Depot Building Materials 12 McDonalds Quick-Service Restaurants Lowes Building Materials 13 Raising Cane's Quick-Service Restaurants Marshalls Family Apparel 14 Ross Family Apparel McDonalds Quick-Service Restaurants 15 Rush Peterbilt Truck Center New Motor Vehicle Dealers Oxnard Building Materials Building Materials 16 Saw Service of America Heavy Industrial Pico Rivera Gas & Carwash Service Stations 17 Shell Service Stations Ross Family Apparel
18 Suez Mobile Water Drugs/Chemicals Rush Peterbilt Truck Center New Motor Vehicle Dealers 19 Sunbelt Rentals Repair Shop/Equip. Rentals Saw Service of America Heavy Industrial 20 Target Discount Dept Stores So Cal Material Handling Warehse/Farm/Const. Equip. 21 Unisource Office Supplies/Furniture Target Discount Dept Stores 22 United Rentals Repair Shop/Equip. Rentals Unisource Office Supplies/Furniture 23 Versai Petroleum Petroleum Prod/Equipment United Rentals Repair Shop/Equip. Rentals 24 Vesta Home Home Furnishings USA Gasoline Service Stations 25 Walmart Supercenter Discount Dept Stores Walmart Supercenter Discount Dept Stores Percentage of Fiscal Year Total Paid by Top 25 Accounts = 2022-23 58.51%
2013-14 64.25%
NOTE: The names are listed in alphabetical order and not by sales tax volume.

Source: HdL Companies, State Board of Equalization
Fiscal Year 2022-23 Fiscal Year 2013-14

CITY OF PICO RIVERA, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(153)
Finance
Net Authority Net Total Percentage Debt
Fiscal County Pension Revenue Revenue Pension Primary of Personal Per Year Deferral Obligation (3) Bonds (1) Bonds Obligation (3) Government Income Capita 2012-13 - (2) - 33,475,542 48,155,000 - 81,630,542 7.03% 1,295 2013-14 - (2) - 32,845,617 46,422,768 - 79,268,385 6.69% 1,241 2014-15 - (2) 24,172,149 32,190,692 44,404,619 3,474,478 104,241,938 8.68% 1,631 2015-16 - (2) 25,366,413 31,510,767 42,271,468 3,646,800 102,795,448 8.66% 1,599 2016-17 - (2) 28,485,966 32,438,350 40,013,319 4,096,656 105,034,291 8.85% 1,640 2017-18 - (2) 31,078,035 31,439,322 37,620,169 4,473,787 104,611,313 8.73% 1,628 2018-19 - (2) 30,962,654 45,590,194 35,082,018 4,967,451 116,602,317 9.12% 1,821 2019-20 - (2) 33,878,412 44,277,732 32,393,869 5,146,415 115,696,428 8.61% 1,826 2020-21 - (2) 34,179,750 42,930,248 29,545,719 6,603,167 113,258,884 7.61% 1,793 2021-22 - (2) 23,242,557 41,542,775 9,577,364 5,214,285 79,576,981 4.79% 1,295 2022-23 - (2) 35,272,270 40,100,302 8,412,506 7,520,930 91,306,008 5.38% 1,497 (1) The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included in the Statement of Net Position. (2) Upon dissolution of the former redevelopment agency on February 1, 2012, the County deferral obligation was transferred to the Successor Agency and is no longer an obligation of the City. (3) City implement GASB 68 in FY 14/15 and recognize pension obligation. Prior Year Governmental Activities information had been updated to provide figures from FY 17-18 to FY 20-21.

Governmental Activities Business-Type Activities

CITY OF PICO RIVERA, CALIFORNIA

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(154)
Finance
General Authority Total Percent of Debt
Fiscal Obligation Revenue Primary Assessed Per
Year Bonds Bonds (1) Government Value Capita
2013-14 - 32,845,617 32,845,617 0.808% 520.92
2014-15 - 32,190,692 32,190,692 0.758% 503.98
2015-16 - 31,510,767 31,510,767 0.709% 493.11
2016-17 - 32,438,350 32,438,350 0.730% 506.49
2017-18 - 31,439,322 31,439,322 0.640% 489.25
2018-19 - 45,590,194 45,590,194 0.882% 711.98
2019-20 - 44,277,732 44,277,732 0.809% 698.67
2020-21 - 42,930,248 42,930,248 0.748% 679.74
2021-22 - 41,542,775 41,542,775 0.682% 676.13
2022-23 - 40,100,302 40,100,302 0.613% 657.65
(1) The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included in the Statement of Net Position.

Note: Details regarding the outstanding debt can be found in the notes to the financial statements.

Source: City of Pico Rivera Finance Department

CITY OF PICO RIVERA, CALIFORNIA

DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
(155)
2022-23 Assessed Valuation: $ 6,540,271,859
Total Debt City’s Share of
6/30/2023 % Applicable (1) Debt 6/30/2023

DIRECT DEBT
City of Pico Rivera 100.000% 23,965,000 23,965,000
TOTAL DIRECT DEBT 23,965,000 23,965,000
OVERLAPPING DEBT:

Metropolitan Water District 19,215,000 0.180% 34,587
Los Angeles Community College District 4,500,730,000 0.013% 585,095 Rio Hondo Community College District 170,234,080 13.077% 22,261,511 El Rancho Unified School District 93,268,121 99.996% 93,264,390 Montebello Unified School District 248,196,585 0.689% 1,710,074 Whittier Union High School District 127,929,361 0.517% 661,395 Los Nietos School District 40,882,715 0.039% 15,944
Whittier City School District 68,080,000 1.918% 1,305,774 TOTAL OVERLAPPING DEBT 5,268,535,862 119,838,771
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 143,803,771 (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.

Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt…...... 1.83%
Total Direct Debt ($23,965,000)................................ 0.37% Combined Total Debt …............................................... 2.20% (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and nonbonded lease obligations.

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CITY OF PICO RIVERA, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(156)
2013-14 2014-15 2015-16 2016-17
Debt limit $ 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 Total net debt applicable to limit - - - -
Legal debt margin $ 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 Total net debt applicable to the limit as
a percent of debt limit 0.00% 0.00% 0.00% 0.00%
Legal Debt Margin Calculation
Assessed value $ 4,065,546,441 $ 4,249,444,059 $ 4,443,723,085 $ 4,699,049,996 Add back: exempt real property 41,603,696 57,920,073 43,475,869 37,669,146 Total assessed value 4,123,466,514 $ 4,291,047,755 $ 4,487,198,954 $ 4,736,719,142 $ Debt limit (15% of total assessed value) 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 $ Debt applicable to limit - - - -
Legal debt margin $ 618,519,977 $ 643,657,163 $ 673,079,843 $ 710,507,871 Note: Under state finance law, the City of Pico Rivera 's outstanding general obligation debt should not exceed 15 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Source: Los Angeles County Assessor 2022/23 Combined Tax Rolls Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
(157)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 - - - - - -
$ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$ 4,960,278,250 $ 5,223,378,886 $ 5,524,451,955 $ 5,741,373,950 $ 6,134,582,164 $ 6,583,483,323 44,583,616 53,025,964 51,331,603 45,418,617 45,152,416 43,211,464 $ 5,004,861,866 $ 5,276,404,850 $ 5,575,783,558 $ 5,786,792,567 $ 6,179,734,580 $ 6,626,694,787 $ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 - - - - - -
$ 750,729,280 $ 791,460,728 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

PLEDGED REVENUE BOND COVERAGE

LAST TEN FISCAL YEARS
(158)
Less: Net Revenue
Fiscal Gross Direct Available for 1999 Bonded
Year Revenue (1) Costs (2) Debt Service Debt (P & I) Coverage 2013-14 11,311,659 $ (4,944,349) $ 6,367,310 $ 1,638,813 $ 3.89% 2014-15 10,934,757 (4,785,711) 6,149,046 1,638,925 3.75% 2015-16 10,787,717 (5,745,991) 5,041,726 1,638,500 3.08% 2016-17 11,969,572 (4,617,562) 7,352,010 1,635,875 4.49% 2017-18 11,825,467 (2,022,475) 9,802,992 1,636,050 5.99% 2018-19 11,995,293 (5,881,508) 6,113,785 1,638,750 3.73% 2019-20 12,398,054 (5,956,123) 6,441,932 1,638,700 3.93% 2020-21 12,260,342 (6,897,155) 5,363,187 1,635,900 3.28% 2021-22 12,457,186 (7,692,571) 4,764,615 1,635,350 2.91% 2022-23 13,782,113 (5,779,647) 8,002,466 1,363,775 5.87% (1) Total Water Authority revenues
(2) Total expenditures less depreciation, amortization on issuance costs and allocated costs Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2016-17 37,906,839 $ $ 980,000 $ 655,944 $ 1,635,944 23.17 2017-18 43,598,587 865,000.00 1,061,150 1,926,150 22.64 2018-19 41,859,180 885,000.00 1,043,650 1,928,650 21.70 2019-20 41,115,931 900,000.00 1,023,450 1,923,450 21.38 2020-21 45,235,968 925,000.00 998,225 1,923,225 23.52
2021-22 49,034,402 955,000.00 965,520 1,920,520 25.53
2022-23 57,424,276 995,000.00 926,250 1,921,250 29.89
(1) Total General Fund revenues
(2) In 2016 the City of Pico Rivera refinanced its 2009 Lease Revenue bonds Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2018-19 $ 901,383 $ 205,000 $ 486,846 $ 691,846 1.30
2019-20 871,222 255,000.00 577,969 832,969 1.05
2020-21 909,366 265,000.00 567,769 832,769 1.09
2021-22 1,126,471 275,000.00 557,169 832,169 1.35
2022-23 1,167,903 290,000.00 546,169 836,169 1.40
(1) Total Metropolitan Transportation Authority Measure M local return revenues Fiscal Gross
Year Revenue (1) Principal Interest Total Coverage
2021-22 8,595,990 $ $ - $ 93,224 $ 93,224 92.21
2022-23 6,716,953 3,500,000 176,972 3,676,972 1.83
(1) Total Successor revenues
(2) In 2021, the 2001 Redevelopment Agency Tax Allocation Refunding Bonds was refunded Source: City of Pico Rivera Finance Department
2016 LEASE REVENUE BONDS (2)
1999 WATER AUTHORITY REVENUE BONDS - Last Ten Fiscal Years 2018 CERTIFICATES OF PARTICIPATION
2021 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS (2)

CITY OF PICO RIVERA, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
(159)
Per
Personal Capita
Fiscal Income Personal Unemployment
Year Population (1) (in thousands) (2) Income (2) Rate (3) 2013-14 63,873 1,185,419 $ 18,559 $ 7.10%
2014-15 63,902 1,200,974 18,794 7.60%
2015-16 64,272 1,187,489 18,476 6.20%
2016-17 64,046 1,197,852 18,703 4.80%
2017-18 64,260 1,278,319 19,893 4.70%
2018-19 64,033 1,343,604 20,983 4.20%
2019-20 63,374 1,383,034 21,823 21.00%
2020-21 63,157 1,487,725 23,556 13.40%
2021-22 61,442 1,662,431 27,057 4.60%
2022-23 60,975 1,698,355 27,853 5.00%
(1) Population Projections are provided by the California State Department of Finance Projections. (2) Income Data is provided by the United States Census Data and is adjusted for inflation. (3) Unemployment Rate is provided by the EDD's Bureau of Labor Statistics Department.

Source: HDL Companies

CITY OF PICO RIVERA, CALIFORNIA

PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND NINE FISCAL YEARS AGO
(160)
% of Total % of Total
City City
Employer Business Type Employees Employment Employees Employment Wal-Mart Supercenter Department Store 250 0.90% 600 2.22% Feit Electric Company, Inc Warehouse For Distribution 199 0.72% Target Department Store 191 0.69% 186 0.69%
Parts Authority LLC Wholesale Business 191 0.69%
Riviera Nursing & Convalescent Healthcare & Hospitals 173 0.62% Vesta Home Home Furnishing & Appliances 142 0.51%
Manning Beef LLC Meat - Miscellaneous 125 0.45%
American Meat Companies Meat - Wholesale 120 0.43%
El Super Grocery Store 104 0.37%
Unisource Solutions Wholesale Business 103 0.37%
BakeMark Manufacturer 300 1.11%
Los Angeles County Sheriff Patrol Station 153 0.57%
Home Depot Retailer 138 0.51%
Rush Truck Center New Motor Vehicles 112 0.41%
Bimbo Bakeries Distribution Center 110 0.41%
Lowes Retailer 105 0.39%
Total Top Employers 1,598 5.75% 1,704 6.31%
Total City Employment (3) 27,800 27,000
(1) Excludes government and tax-exempt property owners, Source: HDL Companies (2) Source: CAFR 2013-2014, removed government and tax-exempt owners (3) Total City Labor Force provided by EDD Labor Force Data. 2022-23 (1) 2013-14 (2)

CITY OF PICO RIVERA, CALIFORNIA

FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(161)
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 General Government 29 30 25 30 30 31 30 29 31 32
Public Safety 5 5 8 8 9 9 7 7 7 7
Public Works 47 54 55 64 65 66 51 51 48 53
Parks & Recreation 20 21 21 26 26 27 24 25 26 27
Community Development 16 16 15 20 19 20 20 20 24 24
Water 11 11 8 9 10 10 10 10 9 11
Total 128 137 132 157 159 163 142 142 145 154
Source: City of Pico Rivera Finance Department
The city historically only reports full-time salaried positions on this schedule.

Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(162)
Function 2013-14 2014-15 2015-16 2016-17
Police:

Calls dispatched 21,602 21,878 24,523 26,177
Crime reports 9,775 10,725 10,268 7,275
Moving citations 4,822 4,250 3,296 3,146
Parking citations - Sheriff 147 549 171 158
Parking citations issued by Public Safety 15,152 16,303 15,468 16,285 Streets and Highways:

Asphalt repair (in tons) 160 427 100 2,523
Curb & gutter repair (lineal ft.) 26 530 500 146
Sidewalk repair (lineal ft.) 877 1,200 1,600 2,523
Traffic signals maintained 42 45 47 47
Water:

Number of customer accounts 9,393 9,400 9,435 9,435
Average daily consumption (millions of gallons) 5 5 4
Water samples taken (annual) 900 1,162 520
Sewers:

Feet of sewer mains root cut/chemically treated 11 11 0* 0 Maintenance:

Square ft. graffiti removal 95,353 101,419 100,000 150,000 Street sweeping miles 21,285 21,285 10,400 21,285
Trees trimmed per year 4,998 4,258 5,000 4,000
Culture and Recreation:

Youth sports 856 856 818 671
Aquatics 16,179 16,179 6,960 10,715
Recreation classes 16,415 16,415 4,825 4,932
Senior Center participants 117,978 117,978 110,632 135,889 (A) Information is not available
(*) City sewer rights were returned to LA County Public Works in FY 2015-16 Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

OPERATING INDICATORS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
(163)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
25,363 22,854 31,780 29,039 29,532 30,863
6,680 6,288 5,969 5,255 5,563 5,655
3,931 3,216 1,770 2,720 3,168 2,480
69 167 74 20 22 65
15,985 28,037 16,543 20,974 20,957 20,950
7,263 4,813 4,061 1,312 12,114 30,556
121 200 606 1,220 5,904 9,477
7,263 208 2,008 2,400 9,010 3,449
47 47 47 48 48 47
9,435 9,435 9,450 9,452 9,470 9,514
4444
728 749 840 650
00 0 0 0 0
229,000 117,536 89,299 260,000 265,000 273,000
21,285 21,285 21,285 21,285 21,285 21,285
3,000 2,500 751 614 3,035 2,569
517 825 292 0 530 1,440
10,502 11,114 8,811 0 0 0
7,076 10,398 5,107 2,289 1,678 1,307
151,669 135,354 97,080 0 5,500 35,636
Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
(164)
Function 2013-14 2014-15 2015-16 2016-17
Public Safety:

Police stations 1 1 1 1
Number of patrol units 12 12 12 14
Highways and Streets:

Miles of streets 115.2 115.2 115.2 115.2
Traffic Signals 43 43 47 47
Water:

Number of active water wells 8 8 8 8
Number of reservoirs 3 3 3 3
Miles of lines & mains 98 98 98 98
Sewer:

Miles of sanitary sewers 285 285 285 285
Miles of flood control channel 17 17 17 17
Culture and Recreation:

Number of parks 8 8 8 8
Number of community centers 6 6 6 6
Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
(165)
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
1 11111
14 14 14 14 14 14
115.2 115.2 115.2 115.2 115.2 115.2
47 47 47 48 50 53
8 88888
3 33333
98 98 98 98 98 98
285 285 285 285 285 285
17 17 17 17 17 17
8 88899
6 66666
Fiscal Year
City of Pico Rivera • 6615 Passons Boulevard • Pico Rivera, CA 90660 Tel. no. (562) 942-2000 • www.pico-rivera.org

City of Pico Rivera
End of the Year
Accomplishments Report
Fiscal Year 2022-2023
Enclosure 2
16b
Steve Carmona
City Manager
Angelina Garcia
Assistant City Manager
Cynthia Ayala
City Clerk
Jane Guo
Director of Administrative Services
Alvaro Betancourt
Director of Community & Economic
Development
Karine Shirinian
Director of Human Resources
Javier Hernandez
Director of Innovation and
Communications
Pamela Yugar
Director of Parks & Recreation
Noe Negrete
Director of Public Works
2 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 3 On behalf of the City Council and the entire City organization, I would like to bid farewell to FY 2022-23 and step into a new chapter. I am delighted to reflect on the remarkable achievements that have shaped our City throughout the past year. Together, we have navigated challenges, embraced opportunities, and built a stronger, more vibrant community.

The City’s performance goals, priorities, and strategies focus on the following areas:
• Fiscal and Organization Sustainability: Harnessing the power of technology, we have embraced smart governance to enhance efficiency and transparency. • Economic Development and Land Use: Our City has experienced economic growth, with new businesses and existing ones expanding. This has not only bolstered our local economy but has reinforced the collaborative efforts between the public and private sectors.
• Infrastructure: Our commitment to enhancing the City’s infrastructure has resulted in significant progress. These projects have showcased our dedication to creating a sustainable and modern community that improves the daily lives of our residents. • Health, Wellness and Safety: The safety and well-being of our residents remain paramount. Our dedicated Public Safety services including police, fire, and emergency services have worked tirelessly to ensure a secure living. Recognizing the importance of sustainability, we have implemented eco-friendly practices and initiatives to preserve our environment.
• Community Engagement: This year, we have made great strides in fostering a sense of community and inclusivity. Through our various events, workshops, and initiatives, we have brought people together to celebrate our diversity and shared values. By amplifying the voices of all residents, we have strengthened the fabric of our community.

I extend my gratitude to each and every resident, as well as our dedicated City employees and partners, for contributing to the success of our City. As we embark on the journey ahead, let us continue working hand in hand to make Pico Rivera an even better place to live, work, and thrive.
“To learn more about the exciting projects, plans, and events throughout the City, I encourage you to explore our City website. I also welcome you to review my monthly City Manager’s report for the latest and greatest here in Pico Rivera.” Steve Carmona
City Manager
City of Pico RIvera
6615 Passons Blvd.

Pico Rivera, CA 90660
www.pico-rivera.org
Dr. Monica Sánchez
Councilmember
John R. Garcia
Mayor Pro Tem
Gustavo V. Camacho
Councilmember
Erik Lutz
Councilmember
Andrew C. Lara
Mayor
Scan the QR code to view the
full list of accomplishments
for FY 2022-2023, or visit
pico-rivera.org
4 City of Pico Rivera Fiscal Year 2022 -23 Accomplishments Report

To positively impact our community by providing
excellent city services, facilitating responsible
stewardship of resources, and actively engaging
our residents, businesses, and visitors.

CITY OF PICO RIVERA STRATEGIC PLAN
Pico Rivera will be a leading progressive, thriving,
connected community with a high standard for
quality of life and collaborative governance.

Cra is a skill in planning, making, or executing.

The acronym CRAFT is used to reinforce the
purpose and importance of the organization’s
values:

Collaboration
Respect
Accountability
Fairness and Inclusion
Transparency

ECONOMIC DEVELOPMENT

AND LAND USE
Encourage the development of underutilized space,
plan for growth, and engage businesses to transform
the City as an economic and cultural hub.

HEALTH, WELLNESS

AND SAFETY
Create a safe and thriving City with low crime and
high standards for health and wellness.

COMMUNITY

ENGAGEMENT
Foster a connected, collaborative, and actively
participating City and workforce.

FISCAL AND ORGANIZATION
SUSTAINABILITY Create a City government build to adapt to change INFRASTRUCTURE Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life.

Our Guiding Plan
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 5 2022-23 City Awards
and Recognition
Awarded $579,800 as part of the
California Department of Housing
and Community Development’s
Permanent Local Housing
Allocation (PLHA) Grant Program.

Awarded $250,000 as part of Los
Angeles Metro’s feasibility study
for the Bus Rapid Transit Corridor
Project to operate a dedicated
high-frequency bus service.

Awarded $4.7 million from
Caltrans Highway Safety
Improvement Program (HISP)
Cycle 11 across (3) projects to
improve traffic signals, signage,
and school crossings citywide.

Awarded $1 million as part of
the Consolidated Appropriations
Act of 2023 will be used to
transform an underutilized and
blighted bus depot into a colorful
neighborhood park.

Awarded a $20,000 grant from
the National Recreation and Parks
Association (NRPA) towards the
PlayPASS program as part of
Youth Sports equity.

Awarded $1 million in the State
of California’s legislative budget
allocation to be used to transform
an underutilized vacant lot into
the City’s first dog park.
6 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report Residents of the
City of Pico Rivera
City Attorney
City Manager
City
Council
Director of
Administrative Services
Director of
Human Resources
Director of Innovation
and Communications City
Clerk
Sheriff
Captain
Director of
Public Works
Director of Parks
and Recreation
Director of Community
and Economic Development
Assistant
City Manager
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 7 FY22- 23 ACCOMPLISHMENTS

FISCAL AND ORGANIZATIONAL

SUSTAINABILITY
The City of Pico Rivera is exceptionally well positioned to meet current and future challenges facing local government and our community. This publication signifies the City’s commitment to work together in a collaborative manner for the betterment of the greater community. These accomplishments and many more demonstrate our diligence and commitment to implementing our strategic priorities and ensuring the City’s economic prosperity and bettering the lives of our citizens and businesses.
8 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report • Received GFOA Award for Excellence in Financial Report for the 2022 Annual Comprehensive Financial Report
(ACFR)
• Received GFOA Award for Distinguished Budget
Presentation for Year 2 of the FY 2021-23 Biennial Budget • Implementation of industry “Best Practices”:
ӹ Updated the Investment Policy
ӹ Updated Capital Asset Capitalization Policy
• Implemented TravelBank Apps to track and reconcile
credit card transactions
• Presented a balanced Biennial Budget for FY 2023-25
• Upgraded Virtual City Hall - 3Di Systems with VCH 311 platform
• Implemented Cyber Security Measures for Ransomware
Protection, Cloud Antivirus, Multi-Factor Authentication (MFA), and Penetrate Testing
• Completed CEA, SEIU, and SEIU Directors Labor
Negotiations
• Successfully renewed all lines of insurance for FY 2023-24 • Enhanced Threat ZERO prevention-based platform for
identifying and managing the presence of compromises &
sophisticated threat actors
• Upgraded new City Phone system from a legacy onpremises system to a modern voice-over IP Cloud system • Successfully placed on the ballot Measure AB,
which in November 2022, voters overwhelmingly
approved it with a 75% approval
• City rated “low-risk” by the California State
Auditor’s Office (State Controller) due to our
commitment to prudent fiscal practices and longterm strategic planning. The City remains the highest-ranked among the neighboring 10 cities, as
staff works hard, above and beyond the challenges
• Implemented an Online Records Center Public
Portal and Public Records Request Automation
Process
• Successfully adopted the City’s first Legislative
Platform
• Successfully led an advocacy trip to Sacramento,
CA for the California Contract Cities Conference
and City Council members to meet with
Assemblymembers Lisa Calderon and Senators
Lena Gonzalez and Bob Archuleta
• Successfully led an advocacy trip to Washington
DC for City Council members to meet with US
Congressional Representatives Judy Chu (D28),
Grace Napolitano (D31), Linda Sanchez (D38),
Robert Garcia (D42), Nanette Barragan (D44);
US Senator Alex Padilla and the Office of the
late Senator Feinstein; the US Departments of
Transportation and Economic Development
Administration; and President Biden’s
Infrastructure Team

FISCAL AND ORGANIZATIONAL SUSTAINABILITY ACCOMPLISHMENTS

PERFORMANCE ACTIVITY FOR FISCAL AND ORGANIZATION SUSTAINABILITY Performance Activity
Accounts Payable Invoices Processed
ACH Accounts Processed
Distinguished/Excellence Financial/Budget Awards Received Percent of balanced General Fund Adopted Budget
IT Help Desk Requests Resolved
Computers/ Laptops Replaced (Starting FY 2022-23)
Adobe Acrobat & Hard Drive SSD Upgrades (Starting FY 2022-23) Hold City Council Goal-Setting Retreat
Increase publicly available City Council Agendas
PRIME Participation Rate
Provide Monthly City Manager’s Report (Started April 2022) Employment Applications Received and Reviewed
New Hire Orientations (Full-Time)
New Hire Orientations (Part-Time)
Eligibility Lists Certified/Interviews Facilitated (Full-Time) Eligibility Lists Certified/Interviews Facilitated (Part-Time) FY 2021-22
6,144
1,784
2 100%
499
-
-
1 100%
93%
25%
2,706
14 48
33 45
FY 2022-23
5,378
2,041
2 100%
673
67 140
2 100%
94%
100%
2,298
19 33
17 53
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 9

ECONOMIC DEVELOPMENT AND

LAND USE ACCOMPLISHMENTS
10 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report • Initiated a partnership with the Rivers & Mountains
Conservancy, City of Montebello, and the LA County
Department of Public Works to explore, plan, and
implement passive recreation facilities at Rio Hondo
Coastal Basin Spreading Grounds
• Executed a Memorandum of Understanding with
Landify to plan, design, and develop new parks,
open space, trails, and recreational facilities at
Ruben Salazar High School and other suitable sites
throughout the city
• Oversight for the construction completion of a 9-unit condominium development at 8813 Gallatin Road.
• Oversight for the construction completion of a 4-unit + ADU apartment building located at 9056 Burma
Avenue.
• Oversight for the construction completion of a 12-
unit townhome style apartment complex at 8421
Telegraph Road.
• Entitled a 1,030 square-foot Starbucks location at the former Tamarack Inn at 9257 Slauson Avenue
• Entitled a 4-story modern architectural-styled Public Storage facility on a site that had been vacant for 42
years
• Issued 14 additional small business grants,
successfully concluding the COVID-19 Impact Relief
Program for small businesses

PERFORMANCE ACTIVITY FOR ECONOMIC DEVELOPMENT AND LAND USE Performance Activity for Economic Development and Land Use Building Permits Processed
Business Licenses Processed
Utility Billed Accounts Processed
Cash Receipt Transactions Processed
Cash Receipts Amount Collected
New Water Accounts Processed
New Water Accounts Amount Collected
EV Charging Station Permits Issued
Residential Solar Panel Permits Issued
Accessory Dwelling Unit Applications - Open Plan Check* Accessory Dwelling Unit Applications - Permits Issued/ Completed* *Accessory Dwelling unit Applications were previously reported as one category FY 2022-23
1,809
2,683
59,591
62,681
$101,601,223
383
$57,937
-
202
112
-
FY 2022-23
2,597
2,220
59,939
69,035
$101,399,846
355
$57,581
8 292
248
45 ECONOMIC DEVELOPMENT AND LAND USE ACCOMPLISHMENTS
• Completed 3 home rehabilitation projects in
partnership with Habitat for Humanity for low- and
moderate-income households
• Sold an underutilized street portion on Baybar Road
and generated $1 million for future development
needs
• Acquired a 5,000 square-foot site located at 9201
Whittier Boulevard in a parking deficient area for the
development of additional parking spaces
• Acquired a vacant Veterans of Foreign Wars post
located at 4865 Durfee Avenue. The 9,000 square-foot
lot will allow the City to develop additional parking for local businesses, including the American Legion
• Acquired the former Montebello Bus Lines and
Metro terminal at the southwest corner of Passons
Boulevard and Jackson Street. The 20,000 square-foot
lot will be developed into the future Passons Active
Depot park
• Approved a Conditional Use Permit application for a
350,000 square-foot warehouse development on a 19-
acre site for Insite Warehouse Development
• Approved entitlement for Southern California Gas
Company to develop a 70,000 square-foot office
building for training and development located at the
headquarters building at 8101 Rosemead Boulevard
• Processed an alcohol seller’s license for Los Amores
de Julia located at 8800 Washington Boulevard
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 11

INFRASTRUCTURE

ACCOMPLISHMENTS
12 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report • Began design phase for the following capital projects:
ӹ Alebrije Dog Park
ӹ Youth Center Renovation
ӹ Rio Hondo Park Renovation
ӹ Utility Box Art Program
ӹ Pico Park Outdoor Restrooms
ӹ Developed a new design for the Smith Park
Aquatic Center.
• Completed the following capital projects:
ӹ City Hall and City Hall West ADA Improvements
ӹ Senior Center ADA Parking Lot Renovation
ӹ Beverly and San Gabriel River Parkway Median
Improvements
ӹ Whittier Blvd Overlay
ӹ Whittier Blvd Landscape Median Improvements
ӹ Rosemead Blvd and Beverly Blvd Hot Spot and
Block Wall at Lindell
ӹ Highway Safety Improvement Program (HSIP)
Cycle 7 Traffic Signal Upgrades
ӹ Highway Safety Improvement Program (HSIP)
Cycle 8 Traffic Signal Upgrades
ӹ Citywide Resurfacing Slurry and Cape Seal (2023)
ӹ Rosemead Blvd North of Whittier Blvd Street
Rehabilitation
ӹ Annual Signing and striping
ӹ Citywide Traffic Signal Upgrades
ӹ Design for Rosemead Blvd Median and Parkway
Beautification
ӹ Design for Major Corridors Median and Parkway
Beautification
ӹ Design for Regional Bikeway Phase I - Mines Ave
Improvements
ӹ Design for Youth Center Renovation
ӹ Purchased three new transportation vehicles.

Two vehicles for Recreation Transit and one
for Dial-A-Ride
ӹ Electrical Switchboard Replacement at Plant No.
3 ӹ Installation of new canopies for outdoor area at
the Senior Center
ӹ Installation of new sewer lines for Clubhouse at
Golf Course
ӹ Rebuilding of pumps in the Storm Water Lift
Stations at Rosemead Boulevard and Rex Road
• Obtained a Caltrans Sustainable Community Planning
Grant in the amount of $585,334 for the Rosemead/
Lakewood Boulevard Complete Corridor Project
• Obtained a Caltrans Highway Safety Improvement
Program (HISP) Cycle 11 Program grant in the amount
of $4.7 million across three project submittals to
improve traffic signals, signage, and school crossings
citywide
• Obtained a FY24 California State Budget Request with
Assemblymember Lisa Calderon in the amount of
$1.125 million for the Alebrije Dog Park
• Obtained a $1,050,000 million dollar grant for The PAD project from Congresswoman Linda Sánchez
• Obtained a Los Angeles Metro grant in the amount
of $250,000 to fund a feasibility study for the future
Rosemead/Lakewood Boulevard Bus Rapid Transit
Corridor Project, which will operate a dedicated highfrequency bus service between Pasadena and Long Beach
• Obtained a New Mini-Pitch from National Recreation
and Parks Association (NRPA) valued at $100,000
• Replaced 11 aging vehicles with new fleet vehicles
• Upgraded the following:
ӹ LED Lighting at Rivera Park Gym and
Multi-purpose Room
ӹ HVAC unit for the Rivera Park Multi-purpose
Room
ӹ Suppression System for Pico Park Kitchen
ӹ HVAC Compressor at City Hall
ӹ LED Lighting at Rivera Park Gym and
Multi-purpose Room
• Built access panel for Storm Water Lift Stations at
Calada Ave. and Pine St.

INFRASTRUCTURE ACCOMPLISHMENTS
Performance Activity
Replaced 12-inch Gate Valves
Maintenance Work Orders
Replaced old meters with AMI meters
Replaced Service Connections Citywide
Pothole Repairs Work Orders
Tons of Hot Asphalt Repairs
Encroachment, Grading, Driveway etc. other permits
Inspections
FY 2021-22
2 579
560
195
563
345
304
245
FY 2022-23
2 1,065
2,485
132
1,057
774
307
530

PERFORMANCE ACTIVITY FOR INFRASTRUCTURE
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 13

HEALTH, WELLNESS AND

SAFETY ACCOMPLISHMENTS
14 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report • Successfully introduced a City Ordinance prohibiting
participation and spectating of illegal street takeover • Completed the Local Roadway Safety Plan that
analyzes traffic collision history citywide to develop
and reduce traffic collisions
• Completed the Facilities Management Plan and
Security System
• Completed the installation of 36 Automated License
Plate Reader cameras by Flock Safety
• Awarded an agreement to develop the City’s first-ever Climate Action Plan (CAP) that outlines measures and
policies to mitigate climate change
• Completed converting and installing 428 LED lights,
bringing the total converted LED lights to 3,341,
generating 1.8 million kWh in energy savings, or
$567,000 in annual cost savings.
• Increased OhmConnect registrations with 63 new
active participants for FY 2022-23 that enables and
incentivizes residents to participate in energy-saving
activities.
• Officially joined the California Jobs First – Los Angeles Collaborative to fund, establish, and support the longterm viability of the South East LA Micro EV Tech Hub and Pico Rivera Nucleus
• Collaborated with the Southern California Association of Governments (SCAG) and completed a study to
determine the need for Electric Vehicle (EV) Charging
Stations in the City in anticipation of the State’s target to have 5 million zero-emission vehicles on the road
by 2030.
• Received the 2022 Gateway Cities Council of
Governments Energy Action Award – Gold.
• Distributed organic waste bins to all eligible
commercial accounts, reaching 100% compliance with
SB 1383 State mandates
• Assisted 93 households in collaboration with the
Southern California Housing Rights Center, delivering
fair housing services, including discrimination
prevention, referrals, case management, and
resolution of landlord-tenant disputes
• Successfully partnered with Beverly Hospital to offer Wellness Classes and Health Screenings at the Senior
Center
• City Council launched a pilot program in February
2023 that added a Public Safety Coordinator position
in the City to enhance coordination between law
enforcement and community

HEALTH, WELLNESS AND SAFETY ACCOMPLISHMENTS
Performance Activity
Tree Trimming Work Orders
Graffiti Removal Work Orders
Square Feet of Graffiti Removed
Illegal Dumping Work Orders
Tons of Trash Collected
Service Requests
Parking Enforcement Citations
Section 8 Requests Processed
Section 8 Housing Assistance Payments
Code Enforcement Cases
Flu Shot Clinic for Seniors (Starting FY 2022-23)
Rabies Clinics with Vetcare Services and SNP LA - Pets Served Rabies Clinics with Vetcare Services and SNP LA - Vaccinations American Red Cross Blood Drives - Donors
American Red Cross Blood Drives - Pints Collected
American Red Cross Blood Drives - Lives Saved
Resolved Code Enforcement Cases on a Complaint Basis
FY 2021-22
3,035
2,683
265,000
688
450
5,897
20,979
1,398
$5,130,351
567
-
336
296
49 54
156
559
FY 2022-23
712
2,572
293,164
797
618
1,312
17,727
1,201
$5,562,831
754
100
547
385
88 79
237
810

PERFORMANCE ACTIVITY FOR HEALTH, WELLNESS, AND SAFETY
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 15

COMMUNITY ENGAGEMENT

ACCOMPLISHMENTS
16 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report • Developed PlayPASS subsidy program that subsidizes
the registration fee for income-eligible youth with
over 50 participants awarded assistance
• Awarded a $20,000 grant from the National
Recreation and Parks Association (NRPA) towards the
PlayPASS program
• Secured $450,000 in grant funding towards the
Outdoor Equity Program (OEP) from California State
Parks that will offer new outdoor excursions and
experiences to our community
• Successfully hosted 13 city-wide Special Events
• Successfully hosted 20 Senior Special Events with an
average attendance of 93 seniors
• Successfully held six Pool Days, in partnership with
local cities
• Held the REACH program at eight Elementary sites
and served approximately 482 students
• Resumed the Pico Rivera Senior Center Meal
program
• Distributed meals to 378 senior citizens through the
Southeast Area Social Services Funding Authority’s
(SASSFA)

COMMUNITY ENGAGEMENT ACCOMPLISHMENTS
• Veterans Resource Center opens at the Pico Rivera
Senior Center with over 130 Veterans Service Officer
and 1,200 Case Worker appointments made
• Ribbon Cutting ceremony for “Pico Rivera Transit
(PRT)” with over 160 Pico Rivera senior and disabled
residents signed up for program
• Successfully engaged and solicited input from
over 5,000 people throughout phases 1 and 2 of
the Historic Whittier Boulevard Specific Plan and
Multimodal Plan
• Successfully partnered with ERUSD to launch the Pico
Rivera Youth Ambassador Program, engaging local
high-school students with real-world city projects and
career paths
• Launched “The Boulevard Bulletin”: A quarterly
newsletter distributed communitywide that provides
updates on the Historic Whittier Boulevard Program
• Acquired and activated the Pico Rivera IDEA for the
Whittier Boulevard Revitalization Program
• Held a successful Clean California Bulky Item Dump
Day Event in partnership with Caltrans
• Issued 12 Profiles to the community for Public
Information
Events
Summer Camp
Winter Camp
Spring Camp
Senior Special Events - average attendance
Firework Spectacular
Movies in the Park (1 of 2)
Movies in the Park (2 of 2)
Summer Street Fest (1 of 2)
Summer Street Fest (2 of 2)
Fiestas Patrias
Halloween Spectacular
Veterans Day Ceremony
Holiday Festival and Tree Lighting
Christmas Baskets Food Distribution
Easter Eggstravaganza
Certified Farmers Market (Wednesdays)
Memorial Day Ceremony
Approx. Attendees
FY 2021-22
522
103
35 46
12,000
100
300
7,500
8,000
10,000
5,000
450
10,000
1,000
6,000
20,000
450
Approx. Attendees
FY 2022-23
608
116
27 93
15,000
250
250
10,000
8,000
7,000
8,000
400
5,000
1,000
6,500
22,000
400

PERFORMANCE ACTIVITY FOR COMMUNITY ENGAGEMENT ACCOMPLISHMENTS City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 17 Department Initiatives
LOOKING AHEAD 2024
AND WE’RE NOT DONE...

ADMINISTRATION
City Manager’s Office
• Present to City Council Revenue-Generating alternatives to aid in funding critical infrastructure and other Capital Improve Projects
• Complete the Virtual City Hall and Mobile App
Implementation
• Implement ShotSpotter technology - gunfire detection, analysis, and alert system
Office of Sustainability / PRIME
• Complete the Climate Action Plan.
• Initiate Climate Action Plan Phase II – Vulnerabilities Assessment and Climate Action Dashboard.
• Launch the PRIME Access Program to provide 100%
renewable energy at an additional 20% discount to 11,452 eligible CARE and FERA customers.
• Increase PRIME participation rate to 95% through active engagement and education at community events.
• Secure grant funding for constructing and installing
Electric Vehicle Charging Stations (EVCS) and associated infrastructure.
• Present the Tesla Solar + Battery Program to the City Council to consider implementing the program . This
program would allow residents of Pico Rivera to lease
Tesla solar panels and battery systems for a 25-year term, including installation, maintenance, and a low, stable rate for the lease term period.
• Host six community events to educate the public on
proper organics waste diversion and gift composting bins to achieve 75% organic waste reduction by 2025.
• Develop and implement an organic waste diversion
enforcement program to meet the upcoming January
1, 2024, milestone under the SB 1383 mandate, which
requires all jurisdictions to transition from education and outreach to enforcing through notices and penalties.
• Implement Smart Waste System Pilot Program at Smith
Park to improve operational efficiency, quality of life, and environmental stewardship.

Waste Management
• Multi-year roll out of AB 1383 programing and expanded waste hauling services

ADMINISTRATIVE SERVICES
• Continue to implement online payments for Utility, Permit, and other payment categories
• Continue to work towards “Paperless” AP Workflows
• Implement “Paperless” Purchase Order Workflows
• Apply for the GFOA Award for Excellence in Financial Report • Apply for the GFOA Award for Distinguished Budget
Presentation
• Publish “Budget-in-Brief” brochure for print and online viewing for FY 2023-25 Budget
• Complete Cloud-based document management software
upgrade
• Continue working towards developing and implementing IT policies and processes
• Continue to upgrade Wireless Infrastructure
• Continue to upgrade Storage and backup infrastructure • Continue to upgrade City-wide Network backbone
• Continue to Upgrade Desktops/ Laptops
• Continue with Monthly IT Training
City Clerk
• Implement the Public Records Request Online portal
• Continue working on Statement of Economic Interest Form 700 Automation Process
• Continue converting the City’s Electronic Content
Management System from Questys to Laserfiche
• Continue working on the Online Records Center
• Continue working on Document Conversion (scanning)
Office of Innovation and Communications
• Finalize the deliverables for the Historic Whitter Boulevard Revitalization Program, which include the adoption of a Specific Plan and Multi-Modal plan for the corridor.
• Initiate the Historic Whittier Boulevard Back Alley Paseos Project
• Advocate for project impact mitigation funding and for the preservation or inclusion of Avenida Vicente Fernandez
as part of the scope of the Whitter Narrows Dam Safety
Modification Project.
• Secure funding to complete design and environmental review of the Rosemead/Lakewood Boulevard Complete Corridor
Project.
• Establish a scope and launch the feasibility study for the Pico Rivera Commuter Rail Station in partnership with Los Angeles Metro.
• To obtain a Caltrans Clean CA Local Grant in the amount of $3.5 million for the Historic Whittier Boulevard Los Paseos Project
• To obtain a grant for the US Economic Development
Administration in the amount of $597,400 for the Southeast LA Micro EV Tech Hub and Pico Rivera Nucleus
• To obtain a grant for the California Regional Trails Program in the amount of $1.4 million for the Pio Pico State Historic Park Trail Connection Project.
• To obtain a grant for the State Budget Request with
Assemblymember Lisa Calderon in the amount of $1.125
million for the Historic Whittier Boulevard Paseo Project • Complete the City Council Chambers Audio/Visual Upgrades • Initiate Citywide Branding and Marketing Project
• Initiate Rosemead Boulevard Master Plan
• Initiate Downtown Pico Rivera Master Plan
• Initiate River Revitalization Master Plan
18 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report

PARKS AND RECREATION
Programs and Services
Facililty and Programming
• Complete renovations for The PAD and The Alebrije
Dog Park.
• Revise City policies and resolutions to allow for the general publics’ rental of Parks and Recreation facilities and fields.
• Complete renovations for the Senior Center patio,
Youth Center, Pico and Rivera Parks’ Gym HVAC, and
Rivera and Smith Parks’ facility roofing
• Align Department operations and programs to provide
long-term sustainability.
• Begin renovation and construction on Rio Hondo Park
Youth Center with estimated completed date of late
2024.
• Implement Rio Hondo Park Nature Program.
• Over 15,000 meals are anticipated to be served for the Summer Food Service Program.
• Complete Pico Park Outdoor Restroom
• Renovate Senior Center Indoor Restrooms
Grants
• Continue to apply for and receive grants to enhance
recreation programming.
• Identify and capitalize on opportunities to acquire and build new recreation facilities or park space.
• Work closely in partnership with management company
to maintain a beautiful Golf Course.

Special Events
• 14 events are scheduled for each of the following Fiscal Year: 2023-24 and 2024-2025: Firework Spectacular,
(2) Movies in the Park, (3) Summer Street Fests,
Fiestas Patrias, Halloween Spectacular, Veterans Day
Ceremony, Holiday Festival and Tree Lighting, Christmas Baskets Food Distribution, Easter Eggstravaganza,
Certified Farmers Market on Wednesday nights, and
Memorial Ceremony.

Aquatic Center
• Develop engineering plans for the Smith Park Aquatic
Center
• Begin construction early 2025.
• Continue partnership with neighboring cities for pool access: approximately 8 Pool Days.

Media and Communications
• 3 Recreation Guides and 12 Profile issues
REACH
• Service eight (8) Elementary Sites: Birney Tech Academy, Durfee Elementary, Magee Academy of Arts & Sciences,
North Ranchito Elementary, Rio Vista Elementary, Rivera Elementary, South Ranchito Dual Language Academy,
and Valencia Academy of the Arts
• Approx. 800 students to be served.

Senior Center
• Will host approximately 30 events: Afternoon dances,
Music on Mines, Taco Night, Mother’s Day Tea, Father’s
Day Celebration, Health and Fitness Day, Movie Nights,
Older American Month Celebration Events, etc.

Transportation
• Dial-A-Ride: over 15,000 trips expected.
• Recreation Transit/Trips & Tours: approximately 32
excursions

PUBLIC WORKS
• Construction of the Pico Rivera Regional Bikeway Project along Mines Avenue
• Fully implement PFOA/PFAS Water Treatment System
• Fiber Optics Implementation Phase
• Median Beautification on Major Corridors Project
• Rosemead Blvd Median and Parkway Beautification Project • Residential Resurfacing Program - Overlay and Reconstruction Project
• Annual Sidewalk Improvements Project
• Annual Signing and Striping Project
• HSIP Cycle 11 Grants:
• Citywide Sign Audit and Roadway Safety Sign
Enhancement Project
• Citywide Traffic Signal Enhancement Project
• School Crossings Safety Enhancement Project
• Implement a Vehicle Replacement & Maintenance Program • Increase Tree Pruning Cycle
• Complete Urban Water Management Plan
• Complete Risk & Resiliency Assessment

COMMUNITY AND ECONOMIC

DEVELOPMENT
• General Plan Update
• Zoning Code Update
• Impact Fee Update
• Update the Filming Permit website for location scouting. • Update, educate and enforce citywide signage ordinance including window signage and banners.
• Educate and enforce the screening of rooftop equipment in residential and commercial areas.
• Rosemead Boulevard/Slauson Avenue Specific Plan
• Washington Blvd Transit Oriented Development (TOD) Specific Plan
• Whittier Blvd Business Improvement District
• Citywide Design Guidelines
• Implementation of the Mobile Home Rent Stabilization
Program
• Implementation of the Vacant Lot Ordinance
• Implementation of the Flavored Tobacco Ordinance
• Whittier Narrows Dam Flood Plan
• Emergency Operation Center Training
• Completion of the Hazard Mitigation Plan
• Continue the disposition and acquisition of property
throughout the City for redevelopment of key sites.
• Implementation of SolarApp to facilitate solar permits. • Implementation of 3Di Building Permit software and
Bluebeam.
• Shopping Cart Ordinance.
• Complete the utilization of CDBG Covid funds for the Small Business Grant Program.
• Section 8 Program: Increase owner participation by increasing marketing of vouchers in the City.

HUMAN RESOURCES
• Develop and implement new employee policies
• Roll out Supervisory Academy
• Update Rules and Regulations
• Negotiate MOUs for all bargaining unions
• Update all Job Descriptions
• Hold ten (10) Employee Trainings
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 19

PFOA/PFAS TREATMENT SYSTEMS

HISTORIC WHITTIER BLVD

REVITALIZATION PROGRAM
PAD PROJECT MINES AVE. REGIONAL BIKEWAY PROJECT
Upcoming Projects to be Completed
20 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report History
Pico Rivera was founded in the 1870’s
when major railroad companies completed
rail lines in the area. Newly arrived
farmers planted large groves in the fertile
land between Rio Hondo and San Gabriel
Rivers. Eventually, the two communities,
Pico and Rivera, were established and
grew into a rustic agricultural setting.

During the 1950’s, homes, schools,
and churches developed, along with
commercial/industrial enterprises. These
establishments grew the communities of
Pico and Rivera closer together, giving a
strong sense of civic awareness. During
a 1958 election, the name “Pico Rivera”
was confirmed for the new city and
five citizens were elected to the first
City Council. Thus, Pico Rivera became
the 61st city in Los Angeles County.

Location
The City of Pico Rivera is located in southeastern
Los Angeles County. It sits approximately 11 miles
southeast of downtown Los Angeles, on the eastern
edge of the Los Angeles Basin, and on the southern
edge of the area known as the San Gabriel Valley.

The City of Pico Rivera is bordered by the cities of
Commerce, Downey, Montebello, Santa Fe Springs,
and Whittier.

The ports of Long Beach and Los Angeles as well as
the Los Angeles International Airport (LAX) are close
in proximity to Pico Rivera.

Facts & Figures
 Established in 1958
 City Population:
62,800 (2020 census)
 Median Household Income:
$70,620
 Median Home Price:
$677,500
 City Recreation:
9 City Parks
 Land Size:
9-square miles
 Area Code/Zip Code:
(562) / 90660-90662
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 21 Pio Pico California State Park
The City’s five acre park encompasses historic gardens and the beautiful restored adobe home of Pio Pico, one of California’s most remarkable historical figures. Volunteers keep this amazing heritage alive by preserving and protecting it with learning opportunities and service projects.

Pico Rivera Sports Arena
Built in 1979, the 6,000-seat arena is famous
for its Mexican rodeos and Latin entertainment.

This sports arena is known to be the largest
Mexican rodeo ring in the country.

Pico Rivera Historical &
Heritage Museum
Our Historical Museum is housed in an original train
depot from 1887. It offers visitors a look at Pico
Rivera’s colorful past through a variety of photographs, documents, and historical objects.

Paseo Del Rio
The Paseo del Rio at the Rio Hondo
Coastal Basins Spreading Grounds
consists of a bike and pedestrian
trail around the perimeter of the
grounds, iron fencing, landscaping,
and a rest area.

Places of
Interest in
Pico Rivera
Education
The Pico Rivera community is proud of
its educational system. Elementary and
High School students living in the city
are served by the El Rancho Unified
School District and the Montebello
Unified School District. There are also
two parochial schools (grade 1-8) and
one private school (K-12) in town.

Pico Rivera proudly offers residents:
8 Elementary Schools
3 Middle Schools
3 High Schools
1 Pre-Kinder-12 and Adult Programs
In addition, there are nearby community
colleges and universities that provide
higher education including Rio Hondo
College, Cerritos College , Cal State
Los Angeles, Cal State Long Beach,
and Cal Poly Pomona. 22 City of Pico Rivera Fiscal Year 2022-2023 Accomplishments Report General Law City
The City of Pico Rivera is a general law city and operates under the Council-Manager form of government
whereby the City Council provides policy direction to
a City Manager appointed by the Council. As the City’s
Chief administrator, the City Manager is responsible for overseeing City employees who implement all of the
City’s programs, services and projects. Five City Council members are elected, at large, for staggered four-year
terms. The council members select two of the members
to serve as Mayor and Mayor Pro Tem.

Municipal Services
The City provides a full range of municipal services
including public works, water, construction and
maintenance of roads and highways, planning and
zoning, recreation and cultural activities, and general administrative support such as overall agency
management, procurement of goods and services,
payroll, recruitment, risk management, budget
preparation and monitoring and accounting. The City
contracts some municipal services with other public
agencies, these include: the Los Angeles County Sheriff’s Department for law enforcement service, the Los Angeles County Fire Department for fire protection and paramedic emergency services, and the Los Angeles County Library
System to operate its two community libraries.

Our Mission
"To positively impact our community
by providing excellent city services,
facilitating responsible stewardship of
resources, and actively engaging our
residents, businesses, and visitors."

ECONOMIC DEVELOPMENT

AND LAND USE

HEALTH, WELLNESS

AND SAFETY

COMMUNITY

ENGAGEMENT

FISCAL AND ORGANIZATION

SUSTAINABILITY

INFRASTRUCTURE

City Government
City of Pico Rivera Profile

RIVERA PARK

SAN GABRIEL RIVER

RIO HONDO
72 19

ROSEMEAD BOULEVARD

SAN GABRIEL RIVER PKWY

TELEGRAPH ROAD

WASHINGTON BOULEVARD

MINES AVENUE

WHITTIER BOULEVARD

BEVERLY BOULEVARD

PASSONS BOULEVARD

ROSEMEAD BOULEVARD

PARAMOUNT

BOULEVARD

PASSONS

SLAUSON AVENUE

PARAMOUNT

PICO RIVERA

MUNICIPAL

GOLF COURSE STREAMLAND PARK

RIO HONDO
PARK

PIO PICO
PARK

PICO PARK
SMITH
PARK
RIO
VISTA
PARK
CITY
HALL
City of Pico Rivera Fiscal Year 2022-23 Accomplishments Report 23 City of Pico RIvera
6615 Passons Blvd.

Pico Rivera, CA 90660
www.pico-rivera.org

CITY OF PICO RIVERA CITY HALL
6615 Passons Boulevard
Pico Rivera, CA 90660
(562) 942-2000
CITY OF PICO RIVERA – PUBLIC WORKS DEPARTMENT
6615 Passons Boulevard
Pico Rivera, CA 90660
(562) 801-4421
CITY OF PICO RIVERA – PARKS & RECREATION DEPARTMENT
6767 Passons Boulevard
Pico Rivera, CA 90660
(562) 801-4430
Hours of Operation: 7:30 a.m. – 5:00 p.m.

Monday through Thursday, closed Fridays, weekends,
and federal holidays.

LOS ANGELES COUNTY SHERIFF’S DEPARTMENT

PICO RIVERA STATION
6631 Passons Blvd.

Pico Rivera, CA 90660
(562) 949-2421
[email protected]
Rolled Over PO FYE 2022‐23
PO No. GL Account # DEPARTMENT VENDOR DESCRIPTION PO Amount Encumbered
Amount
2022‐339 100.15.1500‐54500 Administration Flock Safety Installation of Flock Safety/License Plate Rater 99,000 15,665 2022‐404 100.11.1110‐54500 Administration Local Government Commission Program Management Support 82,257 55,131 2023‐044 100.11.1110‐54400 Administration Milagro Media Strategies Public & Media Relations 25,000 3,926 2023‐081 100.15.1500‐54500 Administration LA County Sheriffs Department Contract City Law Enforcement Services FY 2022‐23 12,302,319 200,000 2023‐257 100.11.1110‐54500 Administration Moore Iacofano & Goltsman Inc Historic Whittier Blvd Multi‐ Modal and Specific Plan 310,624 211,825 2023‐289 100.11.1110‐54500 Administration Actum Ca Opco, LLC Advocacy support related to the Whittier Narrows Dam 84,000 84,000 2023‐313 105.60.6005‐54500 Administration ATI Restoration, LLC. Emergency Agreement related to the Golf Course Fire 336,888 13,185 2023‐315 100.15.1500‐54500 Administration PM Law Enforcement Services, LLC Public Safety Coordinator 50,000 30,000 2023‐326 100.90.9000‐54700 Administration Zencity Technologies US, Inc. Digital Platform for community engagement 9,000 4,500 2023‐356 100.11.1110‐54500 Administration Ollin Strategies Consulting Services Government Relations Consultant 60,000 30,000 2023‐408 100.11.1111‐54500 Administration Cascadia Consulting Services Technical expertise for the development of a Climate Action Plan 149,935 149,935 2023‐390 100.12.1200‐54500 City Clerk Gladwell Governmental Services Record Retention Schedule update 2023 4,900 4,900 2022‐313 100.30.3020‐54400 Community Development Terra Realty Advisors Inc Outdoor Advertising Digital Billboard Signs 27,750 16,799 2023‐005 100.30.4020‐54500 Community Development Willdan Engineering Building and Safety Services 180,000 23,121 2023‐208 100.30.3010‐54400 Community Development Dudek Professional Services for City‐wide Design Standard & Guidelines 3,301 ‐ 2023‐137 100.30.3020‐54400 Community Development New City America Investigate and form a Property‐Based Improvement District 98,000 50,000 2023‐181 100.30.3020‐54400 Community Development 3Di, Inc Engage Permit Solution‐Online Permitting Service 168,500 120,0002023‐226 100.30.3020‐54400 Community Development D/AQ Corporation dba Daum Com. Real Estate Service Real Estate Brokerage Services 45,000 45,0002023‐229 100.30.3010‐54500 Community Development RSG, Inc Implementing the mobile home rent stabilization ordinance 300,000 253,855 2023‐348 100.30.3020‐54400 Community Development Bludot Technologies, Inc. Software to create database of business, track communication, 5,940 5,940 2023‐379 100.30.3020‐54400 Community Development Colliers International Greater Los Angeles Inc. Consultant Services on vacant land to validate land price 45,000 27,000 2023‐389 100.30.3020‐54400 Community Development David Hidalgo Architects, Inc. Commercial façade enhancement 49,500 44,5002023‐201 100.20.2000‐54500 Finance Revenue & Cost Specialist, LLC Cost Allocation & User Fee Study 30,000 6,250 2023‐320 100.20.2010‐54400 Finance Urban Futures Inc Continuing Disclosure and Post‐Issuance Compliance 6,206 2,818 2023‐184 100.20.6040‐52805 Information Technologies ECS Imaging Software License Implementation Cost & User Fees 48,800 5,000 2023‐160 100.80.8000‐54500 Park & Recreation Interwest Consulting Group Electrical Charging Station Project 40,000 2,0312023‐371 100.80.8230‐57300 Park & Recreation CPACINC.COM Apple MAC Studio, Pro Display Computer 18,585 18,585 2023‐393 100.80.8000‐54500 Park & Recreation Nancy Matthews FY 22‐23 Consulting various grant project 8,000 813 2022‐317 100.40.4010‐54500 Public Works NV5, Inc. Tentative Parcel Map 83251 review, 10100 Beverly Blvd. 6,500 3,833 2022‐351 100.40.4010‐54500 Public Works Interwest Consulting Group Grading plan review for 8101 Rosemead Blvd 4,900 140 2023‐241 100.40.4010‐54500 Public Works Interwest Consulting Group Burke St‐ Development Water Plan Check Services 4,000 7802023‐242 100.40.4010‐54500 Public Works Interwest Consulting Group 9257 Slauson‐ Starbucks Grading Plan Review 3,080 8402023‐340 100.40.4010‐54500 Public Works NCM Engineering Corporation Independent review of entry road bridge over union Pacific RR 49,720 49,720 2023‐351 100.40.4031‐54500 Public Works R‐Doors, Inc Door Installation 22,495 16,0002023‐368 100.40.4010‐54500 Public Works Interwest Consulting Group Plan review for 6501 Passons Blvd. offsite improvements 6,160 4,445 2018‐585 100.40.4010‐54400 Public Works TKE Engineering Inc. Streets Bartolo Drainage Ditch 140,966 36,409 2021‐234 100.40.4030‐54655 Public Works County of Los Angeles Dept of Public Works Monitoring City traffic signals through KITS‐City Req. No.268475 16,700 3,275 2021‐239 100.40.4010‐54500 Public Works NV5, Inc. Tract Map 74823 review (Burke) 2,750 451 2021‐425 100.40.4010‐54500 Public Works NV5, Inc. On Call Plan Check services for 3900 Baybar Rd 35,700 82 2023‐131 100.40.4030‐54655 Public Works County of Los Angeles Dept of Public Works Traffic Signal Maintenance for Rose Hills & SGR Pkwy 5,000 553 2023‐153 100.40.4010‐54500 Public Works Interwest Consulting Group On‐call plan check services for development project 10,000 6,920 2023‐164 100.40.4032‐54500 Public Works Mariposa Landscapes, Inc Beverly Blvd. Median Landscape renovations 960,051 591,637 Total Fund 100 Purchase Orders Rolled Over at FYE 2022‐23 2,139,8642023‐267 105.70.7320‐54500 Public Works Yao Engineering, Inc. Golf course fire repair design 57,443 23,6262023‐208 180.30.3010‐54400 Community Development Dudek Professional Services for City‐wide Design Standard & Guidelines 296,699 164,580Total Fund 100, 105, and 180 Purchase Orders Rolled Over at FYE 2022‐23 2,328,070 Enclosure 3
16c
To: Mayor and City Council
From: City Manager
Meeting Date: February 13, 2024
Subject: FISCAL YEAR 2023-24 CITY OF PICO RIVERA MID-YEAR BUDGET REPORT AS OF DECEMBER 31, 2023
Recommendation:

1. Receive and file the Mid-Year Budget Report ending December 31, 2023, which represents the balances and activity for the first and second quarters (July through December) of the 2023-24 fiscal year; and

2. Approve Budget Adjustments amending the fiscal year (FY) 2023-24 Adopted Budget for the General Fund and Other Funds as outlined in Enclosures 1 - 3 of this report.

Fiscal Impact:

The Mid-Year Report shows current revenues and expenditures for the first six (6) months of FY 2023-24. The FY 2023-24 adopted budget anticipated that General Fund Revenues would be $59,564,653. The recommended General Fund Budget Adjustment listed in Enclosure 1 requires an additional appropriation of $65 in expenditures. The Other Funds Budget Adjustments listed in Enclosure 2 require additional appropriations of $3,632,900 in revenues and $1,932,897 in expenditures. The Capital Improvement Funds Budget Adjustments listed in Enclosure 3 require additional appropriations of $107,305 in expenditures being requested at this time.

Background:

The City Council adopted the balanced Year-One of the FY 2023-25 Biennial Budget on June 27, 2023. This mid-year budget performance report for FY 2023-24 includes the six (6) month period beginning July 1, 2023, through December 31, 2023, and year-end projections for the remaining six (6) month period of the fiscal year, from January 1, 2024, through June 30, 2024. This report summarizes the City of Pico Rivera’s (City) overall financial position for the current fiscal year and provides quarterly public reporting, with an emphasis on the General Fund. By December 31, 2023, the expectation is that most expenditure budget categories will be at 50%, although this may fluctuate based on the timing of certain receipts and expenditures/projects. 17 CITY COUNCIL AGENDA REPORT – MEETING OF FEBRUARY 13, 2024 FISCAL YEAR 2023-24 CITY OF PICO RIVERA MID-YEAR BUDGET REPORT AS OF DECEMBER 31, 2023

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Pico Rivera City CouncilFebruary 13, 2024

Pico Rivera City Council
February 13, 2024