Pico Rivera City Council
December 9, 2025

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.

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 and name PRWA as additional insured.

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.

Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

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, excluding Professional Liability Insurance, 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.

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.

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.

Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

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 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, Executive Director
Pico Rivera Water Authority
PO Box 1016
6615 Passons Blvd.

Pico Rivera, California 90660-1016
Richard Nagel, Vice President
Jacobs Engineering Group, Inc.
1000 Wilshire Blvd, Suite 2100
Los Angeles, CA 90017
(213) 228 - 8227
[email protected]
With a courtesy copy to:

Arnold M. Alvarez-Glasman, General Counsel
13181 Crossroads Parkway North
Suite 400 - West Tower
City of Industry, CA 91746
Facsimile: (562) 692-2244
Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

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 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.

Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

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, 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).

Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

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.

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.

Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

30. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California, including, but not limited to, the Terms for Compliance with California Labor Law Requirements attached hereto as Exhibit “C.”

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 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.

33. MANDATORY FISCAL AND FEDERAL PROVISIONS
Consultant acknowledges that the funding associated with the Scope of Services under this Agreement requires compliance with Uniform Guidance (2 CFR Part 200) and EPA-specific regulations (2 CFR Part 1500) attached hereto as Exhibit “D.” [Signatures on the following page]
Professional Services Agreement

JACOBS ENGINEERING GROUP, INC

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 JACOBS ENGINEERING GROUP, Inc. ______________________________ ___________________________________ Steve Carmona, Executive Director Richard Nagel, Vice President Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________________ Cynthia Ayala, Authority Secretary Arnold M. Alvarez-Glasman, General Counsel

EXHIBIT A

SCOPE OF SERVICES
September 19, 2025
PPS0107201546SCO
PPS0107201546SCO
.

PPS0107201546SCO
PPS0107201546SCO
PPS0107201546SCO
PPS0107201546SCO

EXHIBIT B

APPROVED FEE SCHEDULE
PPS0107201546SCO
Exhibit B

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 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.

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 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.

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 PRWA 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 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.

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 PRWA.

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’ 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.”

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 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 in this Exhibit C 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.

EXHIBIT D

MANDATORY FEDERAL PROVISIONS FOR CONTRACTS

FUNDED BY EPA GRANTS

1. Compensation Cap – EPA Daily Rate Limit
Consultant Compensation - In accordance with 2 CFR § 1500.10, the Consultant shall not be compensated at a rate exceeding $650 per day (exclusive of travel and subsistence costs), unless prior written approval is provided by the U.S. Environmental Protection Agency (EPA). Payment shall be made for actual hours worked and based on documented time and effort.

2. Debarment and Suspension
Debarment and Suspension - The Consultant certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency in accordance with 2 CFR Part 180, as supplemented by 2 CFR Part 1532. The Consultant agrees to immediately notify the Client of any change in this status.

3. Equal Employment Opportunity (EEO)
Equal Employment Opportunity - This agreement is subject to the requirements of Executive Order 11246 and 41 CFR § 60-1.4. The Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to these factors.

4. Record Retention and Access
Record Retention and Access - The Consultant agrees to maintain all books, records, documents, and other evidence directly pertinent to performance under this contract for a period of three (3) years from the date of final payment. The Consultant shall allow access to such records by the Client, the EPA, the U.S. Comptroller General, or their authorized representatives for audit, examination, or copying.

5. Termination Clause
Termination - This contract may be terminated by the Client for cause or for convenience.

In the event of termination, the Consultant shall be entitled to compensation for services satisfactorily performed through the effective date of termination. All termination notices must be in writing and specify the reason for termination and the effective date.

6. Rights to Inventions (if applicable)
Invention Rights - If the Consultant is engaged in the performance of experimental, developmental, or research work under this contract, the provisions of 37 CFR Part 401 shall apply. Any invention conceived or first actually reduced to practice in the performance of work under this contract shall be promptly disclosed to the Client.

7. Byrd Anti-Lobbying Amendment
Anti-Lobbying Certification - In accordance with 31 U.S.C. § 1352, the Consultant certifies that no federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency or Member of Congress in connection with this contract. The Consultant agrees to disclose any lobbying with non-federal funds and to provide all disclosures required by 2 CFR Part 200 Appendix II(I).

8. Compliance with Federal Laws and Regulations
Compliance with Applicable Laws - The Consultant shall comply with all applicable federal, state, and local laws, regulations, and executive orders, including but not limited to 2 CFR Part 200 (Uniform Administrative Requirements), 2 CFR Part 1500 (EPAspecific requirements), and applicable terms and conditions of the EPA grant supporting this contract.

9. Contract Work Hours and Safety Standards Act (if applicable) Contract Work Hours and Safety Standards - If this contract involves the employment of mechanics or laborers and exceeds $100,000, the Consultant agrees to comply with the Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 3701–3708), including payment of overtime for hours worked over 40 in a workweek and ensuring health and safety standards are maintained.

10. Clean Air Act and Clean Water Act
Environmental Compliance - For contracts exceeding $150,000, the Consultant agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), and to report any violations to the EPA and appropriate authorities.

11. Prohibition on Profit or Fee
Prohibition on Profit - In accordance with EPA Grants Policy, no fee or profit is allowed on consultant contracts funded by EPA assistance agreements. The Consultant’s compensation shall be limited to the actual cost of services rendered, as documented through invoices, timesheets, and related records.

To: Mayor and City Council
From: City Manager
Meeting Date: December 9, 2025
Subject: ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL

FUND YEAR-END RESULTS
Recommendation:

1. Receive and file the Annual Comprehensive Financial Report (ACFR) for the fiscal year (FY) ending June 30, 2025; and

2. Approve budget transfer of $428,020 from the FY 2024-25 Unassigned General Fund Balance to eliminate the deficit in the Liability Claims Fund.

Strategic Priority:
1 – Fiscal & Organizational Sustainability – Create a City government built to adapt to change
Strategy:

1.1 Build a more transparent and sustainable fiscal system to improve trust and efficiency.

Fiscal Impact:

The discussion below summarizes the financial data found in the ACFR for the FY ending June 30, 2025.

The recommended budget transfer totaling $428,020 from the General Fund (Account No. 100.98.9800-56900) is proposed to eliminate the existing deficit in the Liability Claims Fund (Account No. 105.00.0000-47900).

Discussion:

The ACFR is prepared in accordance with the guidelines set forth by the Governmental Accounting Standards Board (GASB) and audited by CliftonLarsonAllen, LLP (CLA), Certified Public Accountants and Consultants. For the fiscal year ending June 30, 2025, 12 CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

these financial statements received an unmodified opinion from 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 Authority, the Water Authority, and the Successor Agency.

Major sections of the ACFR are the Introductory Section (including the Transmittal Letter and the Management's Discussion and Analysis), the Financial Section, the Notes to the Financial Statements, and the Statistical Section.

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

Financial Statement Highlights
The ACFR includes numerous financial schedules providing information on various aspects of the City's financial standing. The City's net position (assets less liabilities) increased by $39.6 million, from $410.7 million to $450.3 million. Citywide revenues and transfers totaled $152.5 million, reflecting an increase of $14.2 million compared to the prior year. Expenses were $112.9 million, an increase of $10.6 million from the prior fiscal 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 the 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 and 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 the economy and were most recently incorporated into the FY 2025-26 budget, which the City Council adopted on June 24, 2025.

Significant City Accomplishments and Initiatives
During FY 2024–25, the City navigated challenges and achieved several milestones, reflecting significant progress and continued commitment to serving the community.

These accomplishments have reinforced the City’s capacity to meet the evolving needs of the community and organization. The milestones achieved reflect the City’s collective CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

dedication to public service, its focus on advancing strategic priorities, and its ongoing efforts to promote economic vitality while enhancing the quality of life for residents and businesses throughout Pico Rivera.

The City’s performance goals, priorities, and strategies focus on the following areas:
 Fiscal and Organizational Sustainability
 Economic Development and Land Use
 Infrastructure
 Health, Wellness, and Safety
 Community Engagement
The City's FY 2024-25 Accomplishments Report brochure is attached in its entirety to this report as Enclosure 2. The report comprises the City's Guiding Plan, projects, awards, and recognitions, organized by strategic priorities, as well as initiatives and goals for FY 2025-26.

The entire ACFR can be found on the City's website, along with the prior year's financial statements, to promote transparency. In addition, the FY 2024-25 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 2024-25 General Fund revenues and transfers-in totaled $65.41 million for the year, compared to $63.95 million in expenditures and transfers-out.

The $1.46 million difference is shown in Table 1.

Table 1 – General Fund Year-end Results
The positive year-end outcome reflects the result of revenues exceeding budget projections and expenditures remaining below the budget due to the following major components:

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Revenues
In the ACFR, the Combined General Fund (CGF) comprises the following funds: General Fund (GF Fund 100), General Liability Insurance Fund (Fund 105), Workers’ Compensation Claim Fund (Fund 106), Community and Economic Development (CED) Strategy and Goals Fund (Fund 180), Community Benefit Fund (Fund 181), Immigration & Customs Enforcement (ICE) Legal Assistant Fund (Fund 182), Water Enterprise Fund (Fund 551), and Section 115 Pension Trust Fund (Fund 875).

For the fiscal year that concluded on June 30, 2025, the CGF revenues totaled $63.66 million, with the General Fund revenues accounting for $61.34 million. These revenues outperformed the amended budget estimates by approximately $2.02 million, or 3%. The most substantial favorable variances are attributable to Sales Tax and Business License Tax revenue.

The City concluded FY 2024–25 in stable financial position, supported by consistent revenue streams and disciplined fiscal management. Sales Tax, Property Tax, Business License Tax, and investment earnings all performed well, reflecting healthy local economic activity.

During FY 2024–25, the national economy experienced moderate growth amid easing inflation, a resilient labor market, and intermittent financial market volatility. While inflation moderated compared to prior years, elevated prices in certain sectors and cautious consumer spending influenced both economic activity and local revenue performance.

These essential revenue trends continue to play an important role in future fiscal forecasting, and budget planning.

Despite broader economic uncertainties, the City continued to closely monitor fiscal trends and exercise prudent financial management to sustain the continuity of essential public services. Locally, economic indicators suggest stable conditions with continued strength in the retail and service sectors. Sales Tax revenues across California, including those in Pico Rivera, reflected steady consumer demand and provided a reliable foundation for sustaining municipal operations and supporting long-term fiscal stability. • Sales Tax revenues came in higher than amended budget estimates by $955,000, or 4%. These positive year-end outcomes were largely due to a few major businesses in the area, which helped sustain the City’s fiscal health. This strong local performance, particularly in sectors that contribute heavily to pooled sales tax, allowed the City to secure a larger share of the State and County Pool allocations, which are distributed based on relative sales activity across jurisdictions. Overall, the City experienced a 4.1% year-over-year growth trend in Sales Tax, in contrast to Los Angeles County's 2.1% decline.

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

• Property Tax revenue slightly exceeded budget estimates by $223,000, or 1%, due to an increase in median home prices compared to the prior year. While sales volume declined somewhat, indicating a shift from the steady levels observed in 2023, the median sale price continued to rise. This upward trend is attributed to reassessed home values upon sale, sustained high demand, and a limited supply of available properties, as reflected in the 2023-24 tax rolls. The median sale price of Pico Rivera detached single-family homes from January through October 2024 was $738,000, an increase of $37,000 (5%) from the median sale price in the same period in 2023. Despite high interest rates and a slowdown in the number of transactions, the strong demand for housing in Los Angeles County continues to drive year-over-year price growth.
• Utility Users Tax (UUT) came in slightly higher than the budget estimates by $13,000, or 0.3%, due to an increase in the pricing of natural gas billed charges (piped gas per therm, or UGT) and electricity per kilowatt-hour (EKH). When comparing utility (piped) gas prices per therm (UGT), the Bureau of Labor Statistics showed that Los Angeles area households were paying an average of 6.47% more per UGT in 2024 than in 2023. EKH prices in the Los Angeles area, on average, increased 3.67% in 2024 compared to the prior year. The stabilization of previously inflated utility prices since 2023 has resulted in steady revenue collections in FY 2024-25.
• Business License Tax (BLT) came in $83,000, or 2%, under the amended budget estimates, primarily due to slightly less-than-anticipated collections. Staff continues to work with the City’s BLT consultant, HdL, to enforce Measure AB.

However, BLT revenues in FY 2024-25 are higher than those collected in the prior year by $215,000. In FY 2025-26, the City anticipates a further increase in Business License Tax revenues as businesses increasingly adjust to the updated fee structure when renewing their licenses after the implementation of Measure AB in 2023.
• Charges for Services, which include Parks and Recreation revenues, came in over amended budget estimates by $266,000, or 33%, primarily due to higher participation in Parks and Recreation programs and services. The most notable increases are in Contract Programs, Camps, and Special Events, which reflect the high demand of these great programs, as well as the diverse needs of the community. Another notable increase was in the Technology Surcharge fees, that are applied to applicable City service charges.
• Licenses and Permits came in above budgeted estimates by $385,000, or 14%, primarily due to an increase in building permits, electrical permits, zoning and planning fees, General Plan Maintenance, and Storm Drain revenue. Additionally, permit revenue has increased due to two (2) major developments currently in progress and the Knights Inn redevelopment project mentioned later.

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

• Transient Occupancy Tax (TOT), the hotel visitor tax, came in below the budgeted estimates by $95,500, or 24%, primarily due to the closure of a notable hotel establishment following an extended period of inoperability resulting from internal operational changes. On April 23, 2024, the City Council approved a resolution to subdivide the property at 6540 Rosemead Boulevard, formerly the site of the Knights Inn Hotel, into a 95-unit townhouse condominium development. The project includes the demolition and removal, of the existing hotel. Redevelopment is actively progressing, with the developers submitting Plan Check fees for the project in October 2024. While this transition may negatively impact TOT revenue, completing the condominium project is expected to enhance the property’s assessed value, resulting in increased Property Tax revenue. • All Other Revenues came in $375,000, or 8%, over the amended budget estimates, which include Fines and Forfeitures, Use of Money, Cost Reimbursement, and Intergovernmental Revenue. The most notable increases are primarily attributed to the Use of Money and the sale of fully depreciated vehicles and equipment categories. The Use of Money increased due to enhanced returns on the City’s investment portfolio, which includes interest income.

While the City’s investments have shown positive results for FY 2024-25, we must remain vigilant as we proceed into FY 2025-26. The City’s investment portfolio is subject to a range of risks, including market volatility and potential changes in regulatory and policy environments, all of which could materially affect asset valuations. Staff will continue to closely monitor market conditions and requirements to safeguard fiscal stability and ensure alignment with the City’s longterm financial objectives. Additionally, revenue from the sale and disposal of vehicles and equipment contributed to the overall increase. This includes the strategic retirement and sale of aging or underutilized fleet assets and equipment.

These efforts not only generated one-time revenue but also supported operational efficiency by reducing maintenance costs and aligning asset inventories with current service needs.

Table 2 shows General Fund Revenues by category.
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CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Table 2. General Fund Revenues by Category
Table 3 shows other Combined General Fund Revenues associated with the General Liability Insurance Fund, Workers’ Compensation Insurance Fund, CED Strategy and Goals Fund, Community Benefit Fund, ICE Legal Assistance Fund, Water Enterprise Fund, and the Section 115 Pension Trust Fund, where applicable amounts exist for FY 2024–25.

Table 3. Total Combined General Fund Revenues
Revenue Source
FY 24-25

ADOPTED
BUDGET
FY 24-25

AMENDED
BUDGET
FY 24-25

ACTUALS
$

AMENDED
BUDGET
vs.

ACTUALS
% OVER
(UNDER)

AMENDED
BUDGET
Sales Tax 25,884,112 $ $ 25,884,112 $ 26,839,604 $ 955,492 4% Property Tax 14,683,687 14,683,687 14,906,320 222,633 1% Utility Users Tax 4,169,534 4,169,534 4,182,473 12,939 0.3% Transient Occupancy Tax (TOT) 500,000 500,000 404,496 (95,504) (24%) Business License Tax 4,740,027 4,740,027 4,657,255 (82,772) (2%) Charges for Services 551,763 551,763 817,543 265,780 33% Licenses & Permits 2,312,000 2,312,000 2,697,209 385,209 14% Other Taxes* 2,071,700 2,071,700 2,048,636 (23,064) (1%) All Other Revenues** 4,407,972 4,407,972 4,783,444 375,472 8% OPERATING REVENUE 59,320,795 59,320,795 61,336,980 2,016,185 3% Transfers In - Others*** 1,746,124 6,290,779 6,268,624 (22,155) (0%) TOTAL - GENERAL FUND REVENUE $ 61,066,919 $ 65,611,574 $ 67,605,604 $ 1,994,030 3% *Includes Franchise Tax and Rubbish Franchise Fee
**Includes Fines & Forfeitures, Use of Money, Other Revenue, and Intergovernmental Revenue ***Includes Transfer In (Gas Tax)
CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Expenditures
At the end of June, the General Fund expenditures totaled $62.62 million, including operating expenditures of $53.30 million, which were $5.80 million (or 10%) below the amended budget. At the end of the fiscal year, all departments had expenditures below their budget estimates. Table 4 shows the General Fund expenditures by major category, and the major variances are detailed in Table 5.

Table 4. General Fund Operating Expenditure Summary
• Salaries and Benefits expenditures came in lower than amended budget estimates by $1.48 million, primarily due to an average of six (6) vacancies in full-time positions throughout the year. Additionally, vacancy savings occurred in hourly salaries across multiple departments.
• Maintenance and Operations came in lower than amended budget estimates by $4.31 million, of which $1.91 million was identified as projects or services continuing into the next fiscal year. As such, these projects and services have been appropriately included in the Year-End General Fund Open Purchase Order report that spans all departments. The remaining variances are primarily attributed to ongoing appropriations for programs and multi-year projects that were in progress as of June 30, 2025. These initiatives, driven by Council priorities, require funding across multiple fiscal years. Notable examples include public safety initiatives, CED Strategic Plans and Studies, upgrades to City facilities, and enhancements to community outreach and emergency preparedness.
• Capital Outlay in the amount of $1 million, as shown in the table above, is explained in the Non-Departmental section on page 12.
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GENERAL FUND OPERATING EXPENDITURE SUMMARY
FY 24-25

ADOPTED
BUDGET
FY 24-25

AMENDED
BUDGET
FY 24-25

ACTUALS
$

AMENDED
BUDGET
vs.

ACTUALS
% OVER/
(UNDER)

AMENDED
BUDGET
Salaries & Benefits 23,275,950 23,861,252 22,380,063 $ (1,481,189) (6%) Maintenance & Operations 31,725,969 34,233,658 29,918,972 (4,314,686) (13%) Capital Outlay - 1,000,000 1,000,806 806 0%
TOTAL $ 55,001,919 59,094,910 53,299,841 $ (5,795,069) (10%) CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Table 5. General Fund Expenditures by Department
Table 6 shows the Other General Fund expenditures associated with the General Liability Insurance Fund, Workers’ Compensation Claims Fund, CED Strategy and Goals Fund, Community Benefit Fund, ICE Legal Assistance Fund, Water Enterprise Fund, and the Section 115 Pension Trust Fund, where applicable amounts exist for FY 2024–25.

DEPARTMENT / EXPENDITURE CATEGORY
FY 24-25

ADOPTED
BUDGET
FY 24-25

AMENDED
BUDGET
FY 24-25

ACTUALS
$

AMENDED
BUDGET
vs.

ACTUALS
% OVER/
(UNDER)

AMENDED
BUDGET

ADMINISTRATION
Salaries & Benefits $ 1,577,749 $ 1,577,749 $ 1,588,755 $ 11,006 1% Maintenance & Operations 674,079 862,430 665,425 (197,005) (23%) TOTAL ADMINISTRATION 2,251,828 2,440,179 2,254,180 (185,999) (8%)

PUBLIC SAFETY
Law Enforcement - Los Angeles County Sheriff 14,747,684 14,775,745 13,465,961 (1,309,784) (9%) Maintenance & Operations 50,000 1,241,001 1,041,277 (199,724) (16%) TOTAL PUBLIC SAFETY 14,797,684 16,016,746 14,507,238 (1,509,508) (9%)

ADMINISTRATIVE SERVICES
Salaries & Benefits 2,495,143 2,348,143 2,014,647 (333,496) (14%) Maintenance & Operations 942,512 1,091,865 1,080,506 (11,359) (1%) TOTAL ADMINISTRATIVE SERVICES 3,437,655 3,440,008 3,095,153 (344,855) (10%)

COMMUNITY & ECONOMIC DEVELOPMENT
Salaries & Benefits 4,160,393 4,160,393 3,797,144 (363,249) (9%) Maintenance & Operations 2,508,061 3,040,288 1,268,823 (1,771,465) (58%) TOTAL COMMUNITY & ECONOMIC DEVELOPMENT 6,668,454 7,200,681 5,065,967 (2,134,715) (30%)

HUMAN RESOURCES
Salaries & Benefits 896,140 896,140 910,482 14,342 2%
Maintenance & Operations 415,477 515,477 354,273 (161,204) (31%) TOTAL HUMAN RESOURCES 1,311,617 1,411,617 1,264,755 (146,862) (10%)

PARKS & RECREATION
Salaries & Benefits 6,053,582 6,164,582 5,510,974 (653,608) (11%) Maintenance & Operations 1,787,272 1,784,497 1,626,234 (158,263) (9%) TOTAL PARKS & RECREATION 7,840,854 7,949,079 7,137,208 (811,871) (10%)

PUBLIC WORKS
Salaries & Benefits 5,803,004 5,803,004 5,431,080 (371,924) (6%) Maintenance & Operations 5,550,605 5,872,076 5,501,928 (370,148) (6%) TOTAL PUBIC WORKS 11,353,609 11,675,080 10,933,008 (742,072) (6%) Non-Departmental
Salaries & Benefits 2,289,939 2,911,241 3,126,981 215,740 7% Maintenance & Operations 5,050,279 5,050,279 4,914,545 (135,734) (3%) Capital Outlay - 1,000,000 1,000,806 806 0%
TOTAL NON-DEPARTMENTAL 7,340,218 8,961,520 9,042,332 80,812 1% TOTAL GENERAL FUND OPERATING EXPENDITURES 55,001,919 59,094,910 53,299,841 (5,795,069) (10%) Transfers Out - Operating 1,065,000 1,065,000 1,065,000 - 0% Transfers Out - Non-Operating 5,000,000 8,250,311 8,250,311 - 0% TOTAL GENERAL FUND EXPENDITURES & TRANSFERS OUT $ 61,066,919 $ 68,410,221 $ 62,615,152 $ (5,795,069) (8%) CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Table 6. Total General Fund Expenditures
Discussion of departments with significant variances from the amended budget is as follows:
• Administration year-end expenditures came in 8% lower than the amended budget, primarily due to lower legal services, attorney fees, and lower-than-anticipated election charges from Los Angeles County.
• Public Safety year-end expenditures came in 9% below the amended budget, largely due to budgeted resources intentionally continued into FY 2025-26 to support public safety projects underway. These funds were preserved to continue enhancements such as the law enforcement services contract with the Los Angeles County Sheriff’s Department (LASD), probation support services, security and video surveillance services at our public facilities, and ongoing consulting services for the Public Safety Coordinator, all of which will remain active and will continue into FY 2025-26.
• Administrative Services year-end expenditures came in 10% lower than the amended budget, due to salary savings resulting from two (2) full-time positions being vacant for part of the fiscal year. Additional savings were due to lower expenditures in legal services and software costs, not fully materialized. • Community and Economic Development actual expenditures came in 30% below the amended budget due to salary savings resulting from an average of two (2) vacant full-time positions and unfilled part-time positions throughout the fiscal year.

Additional savings were due to ongoing contracts and projects that are expected to continue into FY 2025-26. The contracts and projects include Professional and CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Contracted Services such as the Mobile Home Rent Stabilization Ordinance services and Emergency Preparedness initiatives, as well as key Economic Development Strategic Plans and Studies, including the Local Hazard Mitigation Plan, Emergency Operation Plan, and Multi-Jurisdictional Flood Evacuation Plan that are expected to be ongoing in FY 2025-26.
• Human Resources came in 10% under the amended budget, mainly due to reduced need for outside specialized services, including legal fees, within the Maintenance and Operations expenditures. Additionally, savings related to the ongoing Health and Wellness Program will be carried forward into FY 2025-26. • Parks and Recreation came in 10% under the amended budget, mainly due to salary savings from vacant full-time and part-time positions, primarily in Recreation Administration, Recreation Facilities and Programs, Special Events and Camps.

The salary savings also reflect the reduced number of days for planned special events, which further reduced staffing and operational costs. Additionally, Maintenance and Operations expenditures came in below the amended budget largely due to the timing of purchases and programs, including the Volunteer program, the Purple Heart monument project, and the purchase of fitness equipment for the Senior Center. These costs materialized subsequent to the end of the fiscal year and were accounted for accordingly.
• Public Works came in 6% under the amended budget due to salary savings from vacant positions in the Engineering and Street Maintenance divisions.

Maintenance and Operations expenditures came in under the amended budget, primarily due to ongoing professional and contracted services. These include continuing initiatives and projects that will extend into FY 2025-26, such as the City Council Chambers project, engineering services, and median island maintenance. • Non-Departmental came in 1% above the amended budget, primarily attributed to allocations from the FYE 2023-24 unassigned fund balance. The City Council approved the allocations during the FY 2023-24 Year-End Results review on January 28, 2025.

Of the approved allocations, $1 million was dedicated to property acquisitions that advance the City’s long-term strategic planning and economic development objectives. Actual spending totaled $1,000,806 and included the purchase of 8563–8565 Whittier Boulevard. This investment underscores the City Council’s commitment to securing strategic assets that support future land-use and infrastructure priorities.

In addition, $621,302 was contributed to the Section 115 Pension Trust Fund to further strengthen the City’s long-term pension funding strategy. This investment CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

reflects the City’s proactive approach to managing pension obligations and its ongoing commitment to fiscal sustainability.
• Operating Transfers Out came in at the amended budget estimates for the annual transfer of $1.065 million of sales tax pledges from the General Fund to the Successor Agency (Fund 851).
• Non-Operating Transfers Out came in at the amended budget and included a combination of $5 million, $1 million, $1.07 million, and $1.7 million, to fund Capital Improvement Projects, including street resurfacing, water main improvement projects, re-roofing at various City facilities, vehicle replacement, Median and Parkway Beautification Project, and the Rio Hondo Park Renovation Project.

Fund Balance – General Fund
The FY 2024-25 General Fund operating revenue actuals were $2.02 million higher than the amended budget due to stronger-than-anticipated Sales Tax, Property Tax, Licenses and Permits, and Use of Money revenues. The actual General Fund operating expenditures were below the amended budget by $5.8 million, resulting from staff vacancies throughout the year and the continuation of some programs and projects into FY 2025-26.

Table 7 reflects the General Fund Balance per GASB 54 classifications as of June 30, 2025.

Table 7 – Fiscal Year-End 2024-25 General Fund Balance
Non-spendable Fund Balance
At the end of FY 2024–25, the City reported more than $23.5 million in non-spendable long-term receivables and advances, reflecting a year-over-year decrease of approximately $3.9 million. The reduction is primarily due to the $4.5 million transfer from the Water Enterprise Fund to the General Fund, which aligns with the City’s use of an equivalent amount of American Rescue Plan Act (ARPA) funds for the Water Main Improvement Project. This transaction correspondingly lowered the associated long-term receivable balance.

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Reserved/Committed Fund Balance
The City Council adopted a risk-based General Fund Reserve policy, which increased the General Fund’s reserve from 25% to 50%. To meet the City’s Reserve policy target of 50% of General Fund revenues, $30.9 million was designated as the Reserved/Committed General Fund Balance as of June 30, 2025.

Restricted Fund Balance
At the end of FY 2024–25, the majority of the balance consisted of the PARS Section 115 Pension Trust Fund Account, totaling $2.2 million and restricted for pension related purposes. The balance increased by $735 thousand during the year, primarily due to additional contributions of $621 thousand to the Section 115 Pension Trust Fund.

Assigned/Designated Fund Balance
Assigned funds describe the portion of General Fund reserves that reflect the use of resources by the City Council intended to provide a means and a 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 Benefits (OPEB) unfunded liabilities and leave accrual liabilities. Funds can also be assigned to address equipment replacement needs and 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 Benefits) Unfunded Liability • Leave Accrual Liability
• Equipment Replacement
• Self-Insured Retention
• Bond Refinancing/Reserve
• Capital Improvement (Unfunded/Unprogrammed)
• Deferred Maintenance/Infrastructure Maintenance
• Energy Efficiency Projects
• Economic Sustainability
In addition to the $8,677,920 designations listed above, the assigned balance also included the other combined General Fund balances of $2,742,504, open purchase orders of $1,914,224, and appropriations of $12,711,862 previously approved by the City Council, and a few items outlined below. These planned appropriations were not expensed by June 30, 2025, and were carried over into FY 2025-26. A list of the General Fund Open Purchase Orders is attached (Enclosure 3).

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Assigned Fund Balance – Other Designations
• Smith Park Aquatic Center
o On September 5, 2025, the City accepted grant funding of $6,000,000 from the Department of Parks and Recreation, Office of Grants and Local Services, through the Land and Water Conservation Fund Program, following staff’s active pursuit of grant opportunities for the project.
o In May 2023, the City Council approved designating $6 million of the FY 2021- 22 Unassigned General Fund Balance to this project. At that time, it was expected that if the City were to secure additional grant funding, staff would return to the City Council to request reallocating some or all of the $6 million to other CIP priorities.
o In October 2023, the City Council authorized transferring $161,789 from the $6 million General Fund designation for the Smith Park Aquatic Center to the Teen Center Renovation Construction Project, leaving a remaining balance of $5,838,211.
o Therefore, upon awarding the construction contract, staff will reassess the project budget and seek City Council authorization to reallocate some or all of the $5,838,211 General Fund designation for the project to other immediate operating or capital improvement needs.
o At this time, the City anticipated redirecting these funds to active CIP projects that need additional funding due to rising construction costs, inflation, and unforeseen conditions.
• Negative Fund Balance – In reviewing the City’s other governmental funds, staff identified the need to transfer $428,020 from the General Fund unassigned fund balance to the Liability Claims Fund.
o Liability Claims Fund (Fund 105) – In FY 2024–25, the City exceeded its budget for insurance claim payments by $428,020, resulting in a corresponding fund deficit in the Liability Claims Fund as of June 30, 2025.

This variance was primarily attributable to two (2) claims that required the City to pay self-insurance retentions of $300,000, with the remainder related to claims filed in prior years but settled during the current fiscal year. To address this deficit, staff recommends transferring $428,020 from the General Fund to the Liability Claims Fund. This transfer will not impact the City’s unassigned General Fund balance, as both funds are consolidated into a single fund in the ACFR.

With the recent extension of federal funding through January 30, 2026, the City now has additional clarity regarding near-term federal support; however, staff recommends CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

maintaining a cautious and strategic approach to the use of unassigned General Fund resources. While the extension provides temporary stability, broader fiscal uncertainties remain at the federal level, particularly regarding long-term grant commitments, reimbursement timing, and potential policy changes that may affect City revenues tied to federal programs.

Given these dynamics, staff recommends holding the unassigned balance in reserve until the fiscal impacts of the federal extension and any subsequent changes can be fully evaluated. Preserving this reserve will provide the City with the flexibility necessary to address emerging needs, including potential delays in federal reimbursements, unforeseen operational requirements, or shifts in local economic activity that may affect key revenue sources such as sales tax, business license tax, and permits.

Once additional information becomes available and the fiscal implications of the federal extension are better understood, staff will return to the City Council with a comprehensive assessment and recommendations for the strategic use of available General Fund resources. At that time, the City will be positioned to make targeted allocations that support both immediate operational priorities and long-term financial sustainability.

Enterprise Funds (Proprietary Funds) Year-End Results
Proprietary funds use the accrual basis of accounting, the same method employed by private businesses. Proprietary funds encompass both enterprise funds and internal service funds. The City has four (4) enterprise funds: the Water Operations Fund (550), the Golf Course Fund (570), the Sports Arena Fund (590), and the Pico Rivera Innovative Municipal Energy (PRIME) Fund (560). Table 9 reflects the Enterprise Fund balances and are discussed below.

Table 9 – Enterprise Funds Year-End Results
Water Operations Enterprise Fund
The Water Operations Enterprise Fund accounts for the operation and maintenance of the City’s water treatment, transmission, and distribution systems. During the fiscal year, the Fund generated $13.8 million in service charges and incurred $10.22 million in Net Assets / Fund
Water
Operations P.R.I.M.E Golf Course Sports Arena
Revenue $ 19,008,073 $ 29,063,323 $ 1,386,407 $ 394,511 Less: Expenses $ (7,498,594) $ (24,735,685) $ (2,027,882) $ (351,754) Less: Capital Outlay Expenses $ (3,049,878) $ - $ - $ - Changes in Net Assets $ 8,459,601 $ 4,327,638 $ (641,475) $ 42,757 Beginning Fund Balance $ 45,327,106 $ 17,634,931 $ (4,015,095) $ 830,800 Ending Fund Balance $ 53,786,707 * $ 21,962,569 $ (4,656,570) $ 873,557 * The Water Operations Fund Balance as of 6/30/2025 includes $24.4 million allocated for the ongoing CIP projects.

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

operating expenses. Non-Operating revenues included $957,000 in investment income and $929,000 in capital contributions from the Water Replenishment District of Southern California.

Overall, the Water Fund’s net position increased by $8.46 million, bringing the total to $53.79 million at year-end. Revenues exceeded expenses, with continuing appropriations for projects in progress and scheduled for completion in FY 2025–26.

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. CCAs operate so that power purchase and rate-setting authority are exercised locally. Southern California Edison (SCE) still provides the transmission services and billing of all electricity. However, PRIME utilizes third-party consultants to purchase power and answer billing inquiries from Pico Rivera residents. The benefit of greener energy is lower overhead, and those cost savings have been passed on to residential and commercial customers. Changes in market conditions in power costs and related power products have made it difficult to project the ever-changing fluctuations in the energy market.

During the fiscal year, operating revenues totaled $28.36 million, and operating expenses were $24.74 million. The rate adjustments approved by the City Council in February 2023 generated sufficient revenue to sustain PRIME’s operations, maintenance, and reserve requirements in accordance with adopted policies. Lower operating costs were primarily due to reduced energy demand in the winter and a decline in the cost of Resource Adequacy (RA). These factors, combined with proactive rate management and the procurement of long-term clean energy contracts at competitive prices, resulted in a $4.33 million increase in net assets for FY 2024–25.

Golf Course Fund
During FY 2024-25, the Pico Rivera Golf Course experienced a modest decline in revenues, primarily in concession sales and green fees. Operating expenses increased due to higher costs for contracted management services, facility and grounds maintenance, and utilities supporting the restaurant, banquet facilities, and course operations. Together, these factors resulted in a net operating loss of $641,475 for the fiscal year.

Sports Arena Fund
The Pico Rivera Sports Arena experienced a slight increase in activity, hosting more outdoor events. This increase in operations resulted in revenues exceeding expenditures, yielding a net income of $43,757 for the fiscal year.

CITY COUNCIL AGENDA REPORT – MEETING OF DECEMBER 9, 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT, FISCAL YEAR ENDING JUNE 30, 2025, AND FISCAL YEAR 2024-25 GENERAL FUND YEAR-END RESULTS

Conclusion:

This year-end report presents an overview of the City's General Fund operating revenues and expenditures for FY 2024-25. Staff recommends that the City Council receive and file the report. Staff also recommends that the City Council approve transfers of $428,020 from the General Fund to the Liability Claims Fund to reduce the negative balance in the Liability Claims Fund.

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

Steve Carmona
SC:AG:JG:JA:DS:ep
Enclosures: 1) Annual Comprehensive Financial Report (ACFR), Year Ending June 30, 2025
2) City of Pico Rivera End-of-Year Accomplishments Report, FY 2024-25 3) General Fund Purchase Orders Rolled over to FY 2025-26 Fiscal Year Ended June 30, 2025

PICO RIVERA ACFR

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
2025
City of
California
Enclosure 1
12a

CITY OF PICO RIVERA

CALIFORNIA
www.pico-rivera.org

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED
JUNE 30, 2025
Prepared by:

Administrative Services
Department

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

CITY OFFICIALS XI

ORGANIZATIONAL CHART XII

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN

FINANCIAL REPORTING XIII

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

FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 20
STATEMENT OF ACTIVITIES 21

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
DESCRIPTION OF MAJOR FUNDS 23
BALANCE SHEET 24

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 26

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 27

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES 29

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 30

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET POSITION 31
STATEMENT OF CASH FLOWS 32

FIDUCIARY FUND
DESCRIPTION OF FIDUCIARY FUND 34
STATEMENT OF FIDUCIARY NET POSITION 35
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 36
NOTES TO FINANCIAL STATEMENTS 37

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN 87
SCHEDULE OF CONTRIBUTIONS – MISCELLANEOUS PLAN 89

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS – COUNCIL PLAN 91
SCHEDULE OF CONTRIBUTIONS – COUNCIL PLAN 93

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS 95
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN 96

BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 97
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND 98
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND 99
COUNTY GRANTS SPECIAL REVENUE FUND 100
STATE GRANTS SPECIAL REVENUE FUND 101
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 102

SUPPLEMENTARY INFORMATION

OTHER GOVERNMENTAL FUNDS
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 103
COMBINING BALANCE SHEET 105

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 110

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

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL
REVENUE FUND 114
STATE GAS TAX SPECIAL REVENUE FUND 116
LIGHTING ASSESSMENT DISTRICT SPECIAL REVENUE FUND 117
PROP A SPECIAL REVENUE FUND 118
PROP C SPECIAL REVENUE FUND 119
MEASURE R SPECIAL REVENUE FUND 120
MEASURE M SPECIAL REVENUE FUND 121
HOME GRANT SPECIAL REVENUE FUND 122

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
CALHOME GRANT SPECIAL REVENUE FUND 123
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 124
ECONOMIC SUSTAINABILITY SPECIAL REVENUE FUND 125
IMAGE ENHANCEMENT SPECIAL REVENUE FUND 126
REACH GRANTS SPECIAL REVENUE FUND 127
CABLE/PEG SUPPORT SPECIAL REVENUE FUND 128
TRANSPORTATION DEVELOPMENT ACT SPECIAL REVENUE FUND 129 MEASURE W SPECIAL REVENUE FUND 130
FEDERAL GRANTS SPECIAL REVENUE FUND 131

PARAMOUNT/MINES LANDSCAPE MAINTENANCE ASSESSMENT
CAPITAL PROJECTS FUND 132
CAPITAL IMPROVEMENT CAPITAL PROJECT FUND 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
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

CITY OF PICO RIVERA, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
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 2016 LEASE REVENUE BONDS 158
2018 CERTIFICATES OF PARTICIPATION 158
2021 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS 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 163

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
John R. Garcia
Mayor
Gustavo V. Camacho
Mayor Pro Tem
Andrew C. Lara
Councilmember
Erik Lutz
Councilmember
Dr. Monica Sanchez
Councilmember
November 12, 2025
To the Mayor and Members of the 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, 2025
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, 2025, as mandated by both local ordinances and state statutes. These ordinances and statutes require the City of Pico Rivera (City) to issue an annual report on its financial position and activities, and to have 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 are accurate in all material respects and are reported in a manner that fairly presents 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 that would cause the financial statements to be misleading. All necessary disclosures have been included to enable the reader to gain an understanding of the City's financial activities.

The Annual Comprehensive Financial Report (ACFR) is prepared using the guidelines set forth by the Governmental Accounting Standards Board (GASB) and audited by CliftonLarsonAllen LLP (CLA), Certified Public Accountants & Consultants. For the year ended June 30, 2025, 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 follow 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. (I)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

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 70 acres of local parks.

The City is a general law city. It 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 the City's programs, services, and projects. Five (5) City Councilmembers are elected at large for staggered four-year terms. The Councilmembers 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 services, 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 ACFR presents the financial status of the City and its component units. Although the component units are separate legal entities from the City, their respective financial operations are closely related.

This combined presentation better represents the City's financial activities 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 Councilmembers, 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

FINANCIAL INFORMATION
Budgetary Controls
The City maintains strict budgetary controls to ensure compliance with the legal provisions contained in the annual appropriated budgets approved by the City Council and the Water Authority. Activities of the General Fund, Special Revenue Fund, Enterprise Fund, and Capital Projects Fund are included in the annual appropriated budgets of the government units. The level of budgetary control (that is, the level at which expenditure 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.
(II)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Budgetary controls from the Adopted Budget Resolution No. 7421 were approved by the City Council on June 24, 2025, which include controls such as authorizing Department Directors 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, 2025, after thorough review by appropriate Administrative Services Department staff, will either be released or re-appropriated for use in Fiscal Year (FY) 2025-26, 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 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 sets certain triggers to allow staff and the City Council to reassess budgeted service levels during economic downturns, ensuring ongoing economic stability. The full set of policies is included as an appendix to the FY 2025- 27 budget.

The City strives to be well-positioned to weather potential economic downturns, natural disasters, or other calamities that may impact 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 uses (i.e., addressing long-term unfunded liabilities).

Internal Control
The City's Administrative Services Department is responsible for establishing and maintaining an appropriate internal control structure. The internal control system is designed to ensure that the City's assets are protected from loss, theft, or misuse and that adequate accounting data is compiled to allow 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, 2025, financial statements.
(III)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Long-Term Financial Planning
The City uses two (2) long-term planning tools to guide resource allocation and meet the City’s needs over time. The first of these 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 CIP 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 the creation of 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 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 collaboratively to better the greater community. These accomplishments, and many more, demonstrate our diligence and commitment to implementing our strategic priorities, ensuring the City’s economic prosperity, and improving 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
▪ Health, Wellness and Safety
▪ Community Engagement
Fiscal and Organizational Sustainability Accomplishments Administration:
 Advanced the City’s digital transformation through the strategic deployment of artificial intelligence, Internet of Things (IoT) solutions, and big-data tools to streamline operations, improve decision-making, and enhance public-facing services.  Expanded the City’s AI leadership by integrating CoPilot and Abstract’s AI-driven legislative and policy analysis system, improving transparency, reporting, and internal workflows.  Positioned Pico Rivera as a statewide and national thought leader by being among the first municipalities to join the GovAI Coalition, reinforcing our commitment to the ethical, equitable, and purposeful use of AI in government.

City Clerk:
 Successfully administered the General Municipal Election for two (2) City Council seats.  Updated the City's Biennial Conflict-of-Interest Code to ensure compliance with State regulations.
 Successfully held two (2) record destructions as part of the Bi-Annual Records Destruction Program, supporting responsible records management.
 Launched the Agenda Training and Development Program, including two (2) Agenda Reference Guides to strengthen organizational capacity.  Updated the Pico Rivera Municipal Code relating to City seal and logo policy and procedures.  Introduced a new Levine Act Form and revised the Contract Routing Policy to enhance transparency, streamline reviews, and reinforce ethical standards. (IV)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

 Established standardized policies and procedures for invocations during City Council meetings.

Information Systems:
 Expanded the Virtual City Hall platform, including a redesigned 311 system and the launch of Express Permits, Solar Permits, improving accessibility and reducing processing times.  Strengthened cybersecurity with Multi-Factor Authentication, password management, cloudbased antivirus, and enhanced email security.  Implemented Neptune 360 for Water Utilities and the new ArcGIS Online platform for modernized mapping and data visualization.
 Implemented key policies such as the Computer Use Policy, Incident Response Plan, Disaster Recovery Plan, and updated Helpdesk processes to ensure system reliability and organizational resilience.
 Migrated the Golf Course software to the cloud, improving system accessibility, reliability, and overall operational efficiency.
 Launched Phase I of the City’s new virtualization infrastructure and completed Citywide upgrades to computers and datacenter network switches to strengthen reliability and performance.

Office of Sustainability:
 Maintained stable Pico Rivera Innovative Municipal Energy (PRIME) power generation rates since Fall 2023 while meeting the City’s 70% reserve policy, ensuring affordability and longterm financial sustainability.

Administrative Services:
 Published the FY 2023-24 Accomplishments Book to strengthen public transparency.  Published the "Budget-in-Brief" document, which provides the community with a summary of the City's Annual Budget, Priorities, and Accomplishments.  Delivered Monthly Financial Reporting to City Council on revenues and expenditures for all funds, strengthening financial transparency and reporting.  Updated key administrative and financial policies, including the Investment Policy, Capital Asset Capitalization Policy, and Procurement and Purchasing Procedures.  Presented a balanced Biennial Budget for FY 2025-27 centered on fiscal stability and service continuity.
 Received the Government Finance Officers Association (GFOA) Award for Excellence in Financial Reporting, reflecting the City’s commitment to high-quality financial stewardship.

Human Resources:
 Finalized labor negotiations with all employee groups, including Mid-Managers, Professionals, and Confidential Employees Association (CEA), Service Employees International Union (SEIU) Full-Time Employees, SEIU Directors, and SEIU Part-Time, ensuring alignment with organizational priorities and financial sustainability.  Launched Electronic Evaluations through Trakstar to modernize employee development systems.
 Updated 12 job descriptions, processed 29 recruitments, and reviewed over 3,000 applications.
 Successfully resolved 10 long-term General Liability claims. (V)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Parks and Recreation:
 The City’s Golf Course received extensive facility and course upgrades to improve the user experience.

Economic Development and Land Use Accomplishments
Office of Innovation and Communication:
 Awarded $10,000 from the Eastside Arts Initiative for the Los Paseos Mural Pilot Program.  Awarded $850,000 for the Historic Whittier Boulevard Paseos Project under Community Project Funding through Congresswoman Linda Sanchez.

Community and Economic Development:
 Commercial and Industrial Projects
o Southern California Gas (SoCalGas) Company Office – 8101 Rosemead Blvd - Completed the 70,000 sq. ft. SoCalGas Training and Development Facility. o Starbucks –9036 Beverly Blvd - new location opened in January 2025 with indoor/ patio seating and drive-thru.
o Starbucks - 8650 Washington Blvd. (Pico Rivera Towne Center) – relocated and expanded on a previous vacant site.
o CenterPoint – 3900 Baybar Rd - Completed 41,000 sq. ft. cross-dock facility, generating $1 million for the General Fund. Also approved a Development Agreement for a 60-foot digital billboard.
 Residential Development
o Residential Duplexes – Completed construction of three (3) duplex residences on separate parcels at 4119, 4121, and 4129 Rosemead Boulevard. o Residential Units – Completed the construction of nine (9) residential units located at 8813 Gallatin Road.
 Operational Metrics
o Neighborhood Services Division Cases - Code Enforcement cases increased 62% from 2022 to 2024, reflecting heightened community engagement. o Building Division Permit Activity - Permit issuance rose nearly 19% over three (3) fiscal years.
o Parking Enforcement - Parking Enforcement responded to 1,206 service requests and towed 135 vehicles.
o Housing Division - Achieved a 100% Section Eight Management Assessment Program (SEMAP) score and served 385 families through Housing Choice Vouchers, the Housing and Urban Development (HUD)-funded program.
o Graduated 30 entrepreneurs from the Emprendedor@s small-business development program, which helps participants launch and grow small businesses.

Infrastructure Accomplishments
Office of Sustainability/ PRIME:
 Partnered with the Gateway Cities Council of Governments (COG) to advance a last-mile broadband initiative and install dark fiber through City Hall.

Parks and Recreation:
 Construction Projects Completed:
o Completed the Youth Center Renovation.
o Completed the Senior Center Restroom Renovation.
(VI)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Public Works:
 Construction Projects Completed:
o City Hall Electric Vehicle (EV) charging stations to support cleaner transportation options for City staff, fleet vehicles, and the public. o Rosemead Blvd and major corridor beautification projects that improve safety, walkability, and the visual character of the City’s most heavily traveled routes. o Storm drain repairs to address aging systems, reduce localized flooding risks, and improve long-term water conveyance reliability.
o Telegraph Bridge guardrail emergency repairs to ensure compliance with safety standards and maintain critical roadway connectivity.
o Road resurfacing and reconstruction to extend pavement life, enhance drivability, and support the City’s multi-year pavement management strategy. o Americans with Disabilities Act (ADA) sidewalk improvements to improve mobility and safety for all pedestrians, particularly seniors and individuals with disabilities. o Smith Park synthetic turf replacement improved field safety, durability, and playability for youth leagues, school users, and community sports programs.  Water Capital Improvement Projects:
o Installed per- and polyfluoroalkyl substances (PFAS) water treatment systems at Plant 1, Plant 2, and Well 5 to significantly enhance water quality, ensure compliance with emerging State and Federal regulations, and protect public health by removing harmful contaminants from the local groundwater supply.
o Implemented pressure-relief valves and zoning partitions to stabilize water pressure, reduce system stress, and extend the lifespan of aging pipelines.  Water Authority Operations:
o Continued essential daily water operations, including meter reading, leak repairs, service line replacements, Supervisory Control and Data Acquisition (SCADA) maintenance and PFA-related upgrades.
 Parks and Facilities Improvements:
o Repaired Senior Center skylight to address aging components and improve natural lighting.
o Replaced Heating, Ventilation, and Air Conditioning (HVAC) compressor at City Hall to improve system reliability, increase energy efficiency, and ensure consistent climate controls.

Health, Wellness and Safety Accomplishments
Administration:
 Modernized the City’s public safety model with advanced tools such as:
o Netwatch AI-powered monitoring with real-time deterrence. o Flock automatic license plate readers.
o ShotSpotter gunshot detection.
o Southwest Patrol private security services.

Information Systems:
 Supported installation of Netwatch security cameras at City parks.

Office of Sustainability/ PRIME:
 Completed the City’s first Climate Action and Adaptation Plan (CAAP).  Launched PRIME Power Choice+ in partnership with Tesla.  Implemented SB 1383 organics diversion, achieving 100% compliance.  Secured funding, including a $150,000 Bezos Earth Fund grant, for tree planting and climate initiatives.
(VII)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

 Received the Gateway Cities Council of Government’s inaugural Platinum Energy Action Award.
 Earned national SolSmart Gold designation for solar leadership.

Human Resources:
 Provided employee wellness screenings to support early detection and preventative care.

Public Works:
 Studies/Designs Completed:
o Completed critical studies and design work, including a vehicle miles traveled (VMT) analysis, the Local Roadway Safety Plan, and regional bikeway design.  Parks and Facilities Daily Operations:
o Continued daily maintenance of parks, playgrounds, and picnic areas, ensuring clean, safe, and welcoming environments throughout the year.
o Enhanced security with new perimeter fencing and improved lighting at Rio Vista Softball fields.

Community Engagement Accomplishments
City Clerk:
 Launched the “Leaders of the Pledge” youth civic engagement program.

Office of Sustainability/ PRIME:
 Partnered with the El Rancho Unified School District (ERUSD) and the EcoHero Show to deliver school-based environmental education and launched XeroHome, offering free home energy assessments for residents.

Parks and Recreation:
 Successfully installed six (6) wrap designs, created by local artists, to complete the Utility Box Art Program.
 Facility and Programming:
o Hosted numerous facility openings, seasonal programs, youth sports, adaptive recreation events, and the City’s first Gaming Tournament. o Successfully delivered 13,879 meals for the Summer Food Service Program.  Coordinated shared field use with the El Rancho Unified School District. o Successfully hosted 12 outdoor excursions and experiences under the Outdoor Equity Program (OEP), from the California Department of Parks and Recreation.  Special Events:
o Hosted 24 city-wide Special Events.
o Partnered with the Christmas Basket Committee to distribute 1,000 food boxes. o Collaborated with the Mexican Consulate to host El Consulado Sobre Ruedas for four (4) weeks in February, serving ~3,000 people.
o Organized a staff-led Backpack Giveaway, distributing 600 backpacks to local children. o Launched the City’s first 5K Moo Run.
o Held eight (8) monthly Pop-Up Events at Pico Park.
 Recreation & Education Accelerating Children’s Hopes (REACH) Program:
o Completed Federal Program Monitoring (FPM audit) for three (3) schools with zero findings.
 Trips and Tours:
o Expanded trip offerings beyond Prop A service areas, from nine (9) trips in 2022 to 13 trips in 2025, with most selling out within five (5) days. (VIII)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

o Introduced online evaluation tools to gather real-time feedback.  Senior Center:
o Celebrated the Senior Center’s 35th Anniversary, and delivered extensive senior services, including 22,734 meals; 1,400 case management appointments, and 230 tax returns through American Association of Retired Persons (AARP). o Pico Rivera Transit Services processed 175 applications. o Veteran’s Resource Center assisted 216 individuals.
 Transportation:
o Enhanced ridership and transportation programs, including Dial-A-Ride, Dial-A-Cab, Dial-A-Van, TAP pass distribution, and supporting the GO RIO U-Pass program.  Media and Communications:
o “Award of Distinction” for Sunsets for Pico Rivera Photography from California Association of Public Information Officials (CAPIO).
o Increase social media followers:
 Instagram increased by 2,200 followers
 Facebook increased by 1,100 followers
 YouTube 13,800 viewers
o Completed 10 Profiles and 3 Recreation Guides.
o Improve website SEO and accessibility, with over 320,000 website views.

The City remains committed to developing forward-looking financial plans that deliver the highest level of service to our community through efficient, effective, and innovative practices. Our ongoing efforts focus not only on maintaining long-term financial sustainability but also on strategically positioning the City to realize its 21st Century Vision of building a sustainable, equitable, and vibrant community where residents can live, work, and visit with pride.

ECONOMIC CONDITION AND OUTLOOK
As reflected in the MD&A, the City’s financial condition remains strong. As of June 30, 2025, General Fund operating revenues exceeded expenditures by $7.4 million, and the total fund balance increased by $1.5 million to $86.4 million, or approximately 136% of operating revenues. Further financial information is provided in the MD&A and accompanying notes.

The City’s fiscal strength reflects six (6) consecutive years of disciplined financial management and a sustained focus on aligning ongoing expenditures with stable revenue sources. Looking ahead, it remains essential to proactively manage potential economic fluctuations that may affect key revenue streams such as sales, property, and business license taxes.

Nationally, the economy continues to expand at a moderate pace. Inflation has eased, but remains elevated in some sectors, while job growth has slowed slightly amid higher business costs and softening demand. The Federal Reserve has begun cautiously lowering interest rates to support growth while maintaining vigilance against renewed inflationary pressures. Global conflicts, trade uncertainties, and rising energy costs continue to pose risks that could influence local economic conditions and revenue performance.

In this environment, the City will continue to exercise prudent financial management and long-term planning to maintain fiscal stability. Emphasis will remain on preserving healthy reserves, investing strategically in infrastructure, and operating efficiently to sustain essential public services. The City is committed to developing balanced, forward-looking budgets that uphold the City Council’s priorities, ensuring financial sustainability and a resilient foundation for the years ahead. (IX)
SUBJECT: ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF PICO RIVERA FOR THE FISCAL YEAR ENDED JUNE 30, 2025

OTHER INFORMATION
GFOA Certificate of Achievement Award
The Government Finance Officers Association of the United States and Canada 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 30, 2024. This was the 27th consecutive year that the City has 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 one (1) year. We believe that our ACFR for FY 2024-25 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 government-wide 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 management evaluation. In years when the City spends $750,000 or more 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 Budget Uniform Guidance. Results of the Single Audit are reported separately and will be available by March 2026.

ACKNOWLEDGMENTS
The Administrative Services Department takes primary responsibility for the preparation and accurate presentation of this report. This accomplishment is the result of the professionalism, dedication, and hard work of all department members. We also extend our appreciation to other departments for their support in providing essential operational information for this report. Finally, we thank the City Council for their prudent financial stewardship and leadership, which have been instrumental in guiding the City of Pico Rivera and ensuring its continued financial stability.

Respectfully,
Jane Guo
Director of Administrative Services
JG:JA:DS:ep
(X)

CITY OF PICO RIVERA

CITY OFFICIALS
City Council
John R. Garcia, Mayor
Gustavo V. Camacho, Mayor Pro Tem
Andrew C. Lara, Councilmember
Erik Lutz, Councilmember
Dr. Monica Sánchez, Councilmember
Executive Team
Steve Carmona
Angelina Graves
Cynthia Ayala
Jane Guo
Alvaro Betancourt
Karine Shirinian
Javier Hernandez
Pamela Yugar
Noe Negrete
City Manager
Assistant City Manager
City Clerk
Director of Administrative Services
Director of Community and Economic Development
Director of Human Resources
Director of Innovation and Communications
Director of Parks and Recreation
Director of Public Works
Director of Sustainability Victor Ferrer
(XI)
(XII)
Residents of Pico Rivera
City Attorney
Arnold M. Alvarez-Glasman
City Manager
Steve Carmona
City Clerk
Cynthia Ayala
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
Assistant City Manager
Angelina Graves
Director of
Human Resources
Karine Shirinian
Director of Innovation and
Communications
Javier Hernandez
City Council
Director of
Sustainability
Victor Ferrer
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, 2024
Executive Director/CEO
(XIII)
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FINANCIAL SECTION
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CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(1)
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, 2025, 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, 2025, 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.

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, 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 nonmajor 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 November 12, 2025, 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
November 12, 2025
(5)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
The Management’s Discussion and Analysis (MD&A) provides a narrative overview and analysis intended to help readers understand 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, 2025, the notes to the basic financial statements, and the transmittal letter.

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 introduce 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 comprehensive overview of the City's finances, presented in a format comparable to private sector financial reporting.

The statement of net position presents information on all 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 categorized as either restricted or unrestricted, providing insight into the availability of resources. Over time, increases or decreases in the net position may serve as a useful indicator of whether the City's financial position is improving or deteriorating.

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. Changes in net position are reported when the underlying event 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, 2025
The government-wide financial statements distinguish City functions that are principally supported by taxes and intergovernmental revenues, referred to as governmental activities. The City's governmental activities include general government, public safety, public works, community development, recreation, non-departmental, and interest in long-term debt.

The government-wide financial statements encompass 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 start on page 20 of this report.

Fund Financial Statements
A fund is a grouping of related accounts used to maintain and control resources that have been segregated for specific activities or objectives. The City, like other states and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

All 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 as governmental activities reported 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 nearterm financial requirements.

Since the focus of governmental funds is narrower than that of 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 revenues, 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 24-25) and in the governmental funds statement of revenues, expenditures, and changes in fund balances (pages 27-28) for the General Fund, the Housing Agency Section 8 Fund, the American Rescue Plan Fund, the County Grants Fund, the State Grants Fund, the Capital Improvement Fund, and the 2018 Series A COP Fund since these funds are considered major funds. Data from the additional twenty-three (23) 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 105.

The City adopts an annual appropriated budget for the General Fund and all other governmental funds. Budgetary comparison statements appear on pages 97-101 and 115-133. The governmental fund financial statements are presented on pages 24 through 29 of this report. (7)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
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 (FY) 2017-18 and is utilized to capture the activity of the City's Community Choice Aggregation enterprise function. Readers can find the basic proprietary fund financial statements on pages 30 through 33 of this report.

Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City maintains 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 resources in the fund are not available to support the City's own programs. Fiduciary funds are reported using the full accrual accounting method. The fiduciary fund financial statements can be found on pages 35 and 36 of this report.

Notes to Financial Statements
The notes to the financial statements provide additional information essential to a full understanding of the data presented in the government-wide and fund financial statements. The notes to the financial statements begin on page 37 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 87 through 102 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 105 through 133 of this report.

FINANCIAL HIGHLIGHTS
Citywide
 Comparing the fiscal year ending June 30, 2025, with June 30, 2024, the City's total net position increased by $39.605 million, from $410.655 million to $450.260 million. Of this amount, there was an increase in total assets of $34.269 million to $579.903 million, a decrease in total liabilities of $4.528 million to $141.135 million, a reduction in deferred outflows of resources of $1.242 million, and a decrease in deferred inflows of resources of $2.051 million.
 Citywide revenues totaled $153.630 million, an increase of $15.374 million over the prior year. Total expenses also rose, reaching $114.025 million, an increase of $11.720 million. (8)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
 During the fiscal year, the City made significant progress on several capital improvement projects, including $6.184 million for the Major Corridors Median Beautification project, $5.818 million for the Pico Rivera Regional Bikeway project, $4.534 million for the residential resurfacing program, $4.415 million for the Rosemead Blvd Median Beautification project, and $1.259 million for the Smith Park Stadium Turf Replacement .

As a result, the City’s capital assets, after depreciation, increased by $22.480 million to $376.091 million.

Citywide – Governmental Activities
Governmental Activities revenues increased $11.076 million to $103.834 million (before any transfers and capital contributions). The net increase was driven by several key factors including increases of $5.602 million in operating grants, $1.694 million in miscellaneous revenue, $1.176 million in capital grants, $1.148 million in charges for services, $827 thousand in property taxes, $704 thousand in sales taxes, $301 thousand in utility users tax, offset by a decrease of $395 thousand in investment earnings.

Governmental Activities expenditure increased by $5.908 million to $75.223 million. This is mainly attributed to increases of $3.380 million in General Government, $1.140 million in Public Safety, $1.112 million in Public Works, and $256 thousand in Parks and Recreation.

Fund Level – General Fund
Comparison of FY 2024-25 Actuals to FY 2023-24 Actuals:
 General Fund revenues before transfers were $63.687 million, an increase of $3.323 million over the prior year. The increase was mainly due to increased Taxes and Assessments, Miscellaneous, and Licenses and Permits revenues, offset by a decrease in Investment and Rental revenue:
o Tax revenues increased by $1.551 million as the City received $743 thousand more in property taxes due to increased property assessments compared to the prior fiscal year. The City received $703 thousand more in sales taxes, primarily due to continued growth in the auto and transportation, and business and industry sectors. o Miscellaneous revenues increased by $1.463 million, primarily due to liability claims received of $995 thousand and Pension Section 115 Trust contributions of $621 thousand. o Licenses and permits revenue increased by $603 thousand due to an increase in building and electrical permits of $518 thousand and business license processing fees of $129 thousand.
o Investment and rental revenues decreased by $491 thousand. The decrease was mainly attributed to the investment market experienced this fiscal year.  General Fund expenditures before transfers were $56.227 million, a $5.030 million increase from the prior year:
o General Government expenditures rose by $4.177 million. This increase was primarily driven by two Council-approved action items: a $1 million property purchase and a $621 thousand contribution to the City’s Pension Section 115 Trust.

Additionally, liability claims payments rose by $897 thousand, insurance costs increased by $415 thousand, and added salaries and benefits from filling vacant positions during FY 2024-25.
(9)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
o Public Safety expenditures increased by $1.141 million due to the Los Angeles County Sheriff's Department’s annual increase in the public safety contract. In addition, the enhancements to public safety programs, including the additional video monitoring services throughout our parks provided by Netwatch, the ShotSpotter Gunshot Detection System, Public Safety Coordinator Consulting Services, and security services provided by Southwest Patrol Inc., contributed to the overall increase.
o Public Works expenditures decreased by $296 thousand despite the rising costs of supplies and essential services, including Contracted Services and Professional Services for street sweeping, tree trimming, janitorial services, landscaping and maintenance, and graffiti abatement. This is primarily due to expenses related to two landscape maintenance improvements completed in FY 2023-24.

The General Fund's fund balance increased by $1.460 million to $86.398 million as of June 30, 2025.

Comparison of FY 2024-25 Actuals to FY 2024-25 Final Amended Budget: The General Fund's actual net change in fund balance was $1.460 million, which is $8.208 million higher than the budgeted deficit of ($6.748) million. This variance is primarily attributed to the following factors:

Revenues: Actual revenues were higher than budgeted for in different categories:
o Miscellaneous Revenue: Actual revenues were $1.628 million higher than budgeted, primarily driven by higher-than-expected claim settlement receipts. o Taxes and Assessments: Actual revenues were $1.066 million higher than budgeted, primarily driven by higher-than-expected sales tax collections. o Investment and Rental Revenues: Actual revenues exceeded the budget by $1.004 million due to improved market value returns compared to the previous fiscal year.

Expenditure: Actual spending was lower than budgeted across multiple departments:
o Public Safety: $1.510 million under budget, driven by lower-than-anticipated costs for contracted services provided by the Los Angeles County Sheriff's Department. o Public Works: $742 thousand under budget, mainly due to vacant positions and savings in on-call maintenance services.
o Parks and Recreation: $812 thousand under budget, attributed to vacant positions, savings in special event programming, as well as programs and purchases that will continue into FY 2025-26.
o Community Development: $2.144 million under budget, resulting from lower-than-anticipated costs and adjusted timelines for professional and contracted services expected to be actualized in FY 2025-26.

Expenditure variances reflected strategic timing shifts in staffing and contracting, influenced by supply chain and market dynamics. Additionally, approximately $1.914 million in General Fund encumbrance was carried forward to fulfill planned professional and contracted service commitments in FY 2025-26.
(10)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
Fund Level – Proprietary Funds
The City had four Enterprise Funds in Fiscal Year 2024-25.

Business-type Activities – Enterprise Funds – Overall, the total net position of these funds increased by $12.189 million to $71.966 million as of June 30, 2025.  Total assets increased by $7.935 million to $108.965 million, mainly driven by a $5.504 million rise in Pico Rivera Innovative Municipal Energy (PRIME) fund cash and investments and a $1.638 million increase in Water accounts receivable amounts.  Total liabilities decreased by $3.986 million to $38.911 million, comprised of a $270 thousand increase in current liabilities and a $4.256 million decrease in noncurrent liabilities.

Significant changes within noncurrent liabilities include a $3.980 million decrease in Advances from Other Funds, a $1.359 million decrease in Bonds Payable, offset by an increase of $1.102 million in Net Pension Liability.
 Total operating revenues increased $5.001 million to $47.145 million, and operating expenses increased by $4.726 million to $37.317 million. Most changes stemmed from increased Water Fund Operating revenues. The water fund’s Charges for Services revenue increased by $1.645 million, and Miscellaneous revenue increased by $3.302 million. The main contributor to the increase in operating expenses was the $2.991 million increase in PRIME’s power supply, and a total increase of $862 thousand in salaries and benefits across all Enterprise funds.

Fund Level – Fiduciary Funds
 The Fiduciary Fund is discussed later in this document.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The City of Pico Rivera prepares its financial statements in accordance with reporting models required by the Governmental Accounting Standards Board (GASB) pronouncements. The most recent pronouncement implemented by the City, GASB 100, requires accounting and financial reporting for each type of accounting change and error correction.

Below is the schedule of the Statement of Net Position for the years ended June 30, 2025, and 2024, covering Governmental Activities and Business-Type Activities (i.e., enterprise funds).

Net position serves as a key indicator of a government's financial position over time. As of June 30, 2025, the City's combined net position (governmental and business-type activities) totaled $450.260 million, an increase of $39.605 million from the prior year. (11)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
City of Pico Rivera
Statement of Net Position
Fiscal Year ended June 30, 2025, and June 30, 2024
Net position is categorized into three components: net investment in capital assets, restricted assets, and unrestricted assets. The most significant portion of the net position (governmental and businesstype activities), approximately $330.330 million, is the City's investment in capital assets, including land, buildings, infrastructure, furniture, and equipment, net of accumulated depreciation and related debt for the acquisition of capital assets. Since capital assets are used to provide services to citizens, they are not available to fund the City's day-to-day activities.

On June 30, 2025, the City's restricted net position was $36.413 million or 8.09% of the total net position. These are assets subject to external restrictions, constitutional provisions, or enabling legislation that govern 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 $83.517 million is unrestricted and may be used to meet the government's ongoing obligations to citizens and creditors. The unrestricted amount increased by $18.392 million compared to the June 30, 2024, amount.
2025 2024 2025 2024 2025 2024
Assets:

Current and O ther Assets $ 142,839,303 $ 135,473,526 $ 44,954,289 $ 38,926,286 $ 187,793,592 $ 174,399,812 Internal Balances 16,456,239 20,436,212 (16,456,239) (20,436,212) - - Land held for resale 1,701,360 1,701,360 - - 1,701,360 1,701,360 Receivables from
Successor Agency 14,115,073 15,724,611 201,496 197,206 14,316,569 15,921,817 Capital and Leased Assets 312,282,139 291,705,001 63,809,140 61,906,073 376,091,279 353,611,074 Total Assets $ 465,040,710 487,394,114 $ $ 92,508,686 80,593,353 $ 545,634,063 579,902,800 $ Deferred O utflow of resources $ 11,773,320 $ 12,993,886 $ 2,185,605 $ 2,207,264 $ 13,958,925 15,201,150 Liabilities:

Current liabilities $ 28,062,760 $ 29,821,714 $ 6,711,497 $ 6,441,112 $ 34,774,257 $ 36,262,826 Long-term liabilities 38,742,309 41,435,646 5,054,750 6,299,062 43,797,059 47,734,708 Net O PEB O bligation 15,901,664 16,305,924 1,985,472 2,118,847 17,887,136 18,424,771 Net Pension Liabilities 35,973,697 35,639,209 8,702,938 7,601,404 44,676,635 43,240,613 Total Liabilities 118,680,430 $ 123,202,493 22,454,657 22,460,425 $141,135,087 $145,662,918 Deferred Inflows of resources $ 2,193,152 $ 3,954,819 $ 273,371 $ 562,450 $ 2,466,523 4,517,269 Net Position:

Net investment in capital assets $ 255,047,492 273,407,019 $ $ 54,345,848 56,922,589 $ $ 309,393,340 330,329,608 Restricted 36,413,091 36,136,236 - - 36,413,091 36,136,236 Unrestricted 68,473,742 59,693,556 15,043,674 5,431,894 83,517,416 65,125,450 Total Net Position $ 378,293,852 $ 350,877,284 $ 71,966,263 $ 59,777,742 $ 450,260,115 $ 410,655,026 Governmental Activities Business-Type Activities Total
(12)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
Governmental Activities – Governmental activities' assets increased $22.353 million to $487.394 million, deferred outflow of resources decreased $1.221 million, liabilities decreased $4.522 million to $118.680 million, deferred inflows of resources decreased $1.762 million, and total net position increased $27.417 million to $378.294 million when compared to the prior year.  Cash and investments increased by $13.426 million to $121.789 million compared to the prior year. This increase is attributed to the City’s governmental activities during FY 2024-25.  Accounts receivable decreased by $2.205 million, mainly due to a $1.650 million decrease in the Measure M fund and a $3.796 million decrease in State Grants receivables, as the City collected the amounts billed in FY 2023-24 during FY 2025-26. This decrease was partially offset by $1.451 million increase in the State Grant Funds receivable and $1.285 million for liability claims, as the City expects to receive reimbursements in FY 2025-26 for amounts billed in FY 2024-25.
 Capital assets increased by $20.577 million as the City progressed with various capital improvement projects, including $6.184 million for the Major Corridors Beautification project, $5.946 million for the Pico Rivera Regional Bikeway project, and $4.534 million for the residential resurfacing program.
 Unearned revenue decreased by $3.469 million after the City recognized $1.076 million for the Residential Resurfacing Program and $2.396 million of ARPA funds used for the Water Main Replacement project.
 Deferred inflows of resources decreased by $1.762 million, primarily in connection with the City’s Other Post-Employment Benefits (OPEB) and Pension Plans.  Pension liabilities totaled $28.509 million, along with the deferred outflow of resources and deferred inflows of resources in accordance with GASB 68, which was first effective for FY ending June 30, 2015, and was first reported on the financial statements for FY 2014-15.  There were $15.077 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. Like 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 $11.915 million to $92.509 million, deferred outflow resources decreased by $22 thousand to $2.186 million, liabilities decreased by $6 thousand to $22.455 million, deferred inflow of resources decreased by $289 thousand to $273 thousand, and total net position increased $12.188 million to $71.966 million when compared to the prior year.
 Cash and investments increased by $6.099 million to $34.018 million compared to the prior year.

This increase is primarily attributable to the PRIME fund’s business-type activities during FY 2024-25.
 Capital assets increased by $1.903 million as the City progressed with various capital improvement projects, including $2.508 million in the PFAS project.  Liabilities decreased by $6 thousand, mainly driven by a $1.102 million increase in net pension liability. The increase was offset by a payment of $1.255 million in principal on the Water Authority Revenue Bond Series 1999 A.
 There were $6.894 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 ending June 30, 2015, and was first reported on the financial statements for FY 2014-15.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
 There was $1.882 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. Like 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 below.

City of Pico Rivera
Statement of Activities
Fiscal Year ended June 30, 2025, and June 30, 2024
2025 2024 2025 2024 2025 2024
Revenues
Program Revenues:

Charges for services $ 6,286,266 $ 5,137,811 $ 47,144,639 $ 42,143,353 $ 53,430,905 $ 47,281,164 Operating grants an contributions 33,143,012 27,540,888 - - 33,143,012 27,540,888 Capital grants and contributions 2,123,072 946,727 - 70,935 2,123,072 1,017,662 General Revenues:

Property taxes 16,207,096 15,379,635 16,207,096 15,379,635 Sales and use taxes 26,839,604 26,136,067 - - 26,839,604 26,136,067 Franchise taxes 2,048,636 2,084,370 - - 2,048,636 2,084,370 Utility users taxes 4,182,473 3,881,820 - - 4,182,473 3,881,820 Other taxes 5,061,751 4,964,759 - - 5,061,751 4,964,759 Investment earnings 5,163,739 5,558,556 1,719,249 1,170,718 6,882,988 6,729,274 Gain on bond defeasance - - 2,777 - 2,777 -
Gain on sale of capital assets 107,312 149,904 - - 107,312 149,904 Miscellaneous 2,671,053 977,447 - - 2,671,053 977,447
Total Revenues 103,834,014 92,757,984 49,795,941 43,385,006 152,700,679 136,142,990 Expenses
General Government 16,014,552 12,634,852 16,014,552 12,634,852 Public safety 14,519,235 13,379,213 14,519,235 13,379,213 Public works 20,145,432 19,033,575 20,145,432 19,033,575 Parks and recreation 9,508,665 9,252,519 9,508,665 9,252,519 Health and welfare 7,447,266 7,372,371 7,447,266 7,372,371 Community development 6,280,740 6,295,744 6,280,740 6,295,744 Interest and fiscal charges 1,306,723 1,346,707 1,306,723 1,346,707 Enterprise operations - - 37,650,070 32,989,954 37,650,070 32,989,954 Total Expenses 75,222,613 69,314,981 37,650,070 32,989,954 112,872,683 102,304,935 Increase/Decrease in net position
before transfers 28,611,401 23,443,003 12,145,871 10,395,052 39,827,996 33,838,055 Transfers (42,650) (33,452) 42,650 33,452 - -
Capital Contribution - - 929,276 2,112,479 929,276 2,112,479 Forgiveness of Debt (1,152,183) - - - (1,152,183) -
Change in net position: 27,416,568 23,409,551 12,188,521 12,540,983 39,605,089 35,950,534 Net position-beginning of year 350,877,284 327,467,733 59,777,742 47,236,759 410,655,026 374,704,492 Net position-end of year $ 378,293,852 $ 350,877,284 $ 71,966,263 $ 59,777,742 $ 450,260,115 $ 410,655,026 Governmental Activities Business-Type Activities Total
(14)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
Governmental Activities – Total revenues increased by $11.076 million, and expenses increased by $5.908 million compared to the previous year.
 Overall, program revenues increased by $7.927 million, primarily due to an increase of $5.602 million in operating grants and contributions, an increase of $1.148 million in charges for services, and $1.176 million in capital grants and contributions.  Overall, general revenues increased by $3.149 million, with a $1.694 million increase in miscellaneous revenue mainly due to claim settlement payments, an increase of $827 thousand from property taxes as assessment values climbed, a $704 thousand rise in sales taxes mainly due to increased sales in the auto and transportation industry, an additional $363 thousand from property taxes as assessment values climbed and an increase of $301 thousand in utility users tax. These gains were offset by a decrease in investment earnings of $395 thousand as rates declined throughout the fiscal year.  Expenses increased by $5.908 million in FY 2024-25. This was driven by higher costs in several major areas: General Government costs rose by $3.380 million, Public Safety by $1.140 million, Public Works by $1.112 million, and Parks and Recreation by $256 thousand. These increases resulted from cost-of-living adjustments in salaries and benefits, filling vacant positions, higher spending on contracted services and supplies, as well as OPEB and pension-related transactions.

Business-Type Activities – The City has three major Enterprise Funds: the Water Fund, the Golf Course Fund, and the Pico Rivera Innovative Municipal Energy Fund (PRIME), which operated for the sixth full year in FY 2024-25.
 Revenue rose by $6.411 million, primarily attributed to $3.299 million in miscellaneous revenue received and an increase of $1.488 million in metered water sales.  Expenses increased by $4.660 million. There are three notable items: a $2.991 million increase in PRIME’s cost of power, stemming from rising energy costs and higher usage during the summer; an additional $862 thousand for salaries and benefits; and $699 thousand more in contractual services, attributed to cost-of-living adjustments for salaries and benefits, the filling of vacancies, greater spending on contracted services and supplies, and OPEB and pension-related transactions.

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

As of June 30, 2025, the City's governmental funds reported a combined ending fund balance of $138.389 million, as shown on page 25. The fund balance categories of governmental funds were as follows: $23.466 million as nonspendable, $34.151 million as restricted, $30.869 million as committed, $47.679 million as assigned, and $2.224 million as unassigned. (Please refer to Note Number 12 of the Notes to Financial Statements for a detailed breakdown.) (15)

CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
The City reports seven major governmental funds: the General Fund, the Special Revenue Housing Agency Section 8 Fund, the Special Revenue American Rescue Plan Fund, the Special Revenue County Grants Fund, the Special Revenue State Grants Fund, the Capital Projects Capital Improvement Fund, and the Capital Projects 2018 Series A COP Fund, which is described below.

Major funds are generally defined as having significant activities or balances in the current year.

Other individual governmental funds may be found in the Supplemental section, which begins on page 103.

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 related expenditures. At the end of the current fiscal year, the General Fund had a fund balance of $86.398 million, an increase of $1.460 million from the previous year. The nonspendable amount is $23.466 million, the restricted amount is $2.312 million, the committed amount is $30.869 million, the assigned amount is $26.047 million, and the unassigned amount is $3.706 million.

Housing Agency Section 8 Special Revenue 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 housing needs. $7.172 million in revenue was received during the year, and $7.115 million was spent. The ending fund balance was $914 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. In FY 2024-25, $173 thousand more was received compared to the prior year, and overall expenditures were $440 thousand higher.

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 first and the second 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 $2.149 million remaining as unearned revenue in the American Rescue Plan Fund as of 6/30/2025. The City has obligated all funds by December 31, 2024, and will expend all funds by December 31, 2026, per the guidelines set forth by the U.S. Treasury Department.

County Grants Special Revenue Fund – This fund accounts for various Los Angeles County grants that are received for restricted expenditures on specific programs and projects.

During the fiscal year, the fund had $238 thousand in revenue and $291 thousand in expenditure, mainly related to the Smith Park Aquatic Center project.

State Grants Special Revenue Fund – This fund accounts for various State of California grants received for restricted expenditures on specific programs and projects.

Throughout the fiscal year, the fund received $14.106 million in revenue. It incurred $10.555 million in expenditure, primarily for the Pico Rivera Regional Bikeway project ($1.977 million), the Major Corridors Median Beautification project ($2.783 million), and the Rosemead Blvd Median Beautification project ($3.172 million).
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
As of June 30, 2025, the fund had $1.952 million in unavailable revenue, which the City has been gradually collecting.

Capital Improvement Capital Projects Fund – This fund accounts for the acquisition or construction of major capital facilities.

Throughout the fiscal year, the City transferred $7.682 million to this fund to support various capital improvement projects, including $5 million for street paving and $1 million for the Rio Hondo Renovation project. The fund incurred expenditures of $4.277 million, including $1.259 million for the Smith Park Stadium Turf Replacement, $1.055 million for the Pico Rivera Regional Bikeway project, and $813 thousand for the Major Corridors Median Beautification project. 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 issued in FY 2018-19. As of June 30, 2025, the aggregate outstanding principal amount was $12.785 million.

During the year, there was interest revenue of $203 thousand, capital outlay of $3.931 million, a bond principal payment of $320 thousand, and interest charges of $517 thousand in expenditures.

The ending fund balance was $1.399 million.

Business-type Activities – Enterprise Funds
The enterprise fund group has three major funds: the Water Operations Enterprise fund, the Pico Rivera Municipal Energy (PRIME) fund, and the Pico Rivera Golf Course 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, $17.105 million was received as operating revenue and $929 thousand as capital contributions from the Water Replenishment District for the PFAS project, with operating expenses at $10.215 million. During the year, there was a $957 thousand investment income and $333 thousand bond interest charges. The Water Fund's net position increased by $8.460 million from the prior year, increasing the net position to $53.787 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 in such a way that power purchase and rate-setting authorities are exercised locally.

Southern California Edison (SCE) still provides transmission of all electricity and billing. However, PRIME utilizes third-party consultants to purchase power and answer billing inquiries from Pico Rivera residents. The benefit is that the overhead is lower, and those cost savings have been passed on to residential and commercial customers.

Operating revenues increased by $25 thousand to $28.364 million during the year, and operating expenses increased by $3.221 million to $24.736 million from the prior year. The increase in operating expenditures was primarily driven by a $3.050 million increase in resource adequacy (RA) purchases. The average cost of RA rose from $90 per kW-month to $115 per kW-month, causing the escalation in FY 2024-25.
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
Pico Rivera Golf Course Fund – This fund accounts for the operations of the City-owned golf course.

Operating revenues rose by $13 thousand to $1.343 million during the year, while operating expenses increased by $344 thousand to $2.018 million compared to the previous year. As a result, the net position of the Golf Course Fund declined by $641 thousand from the prior year, bringing it to ($4.657) million.

Please refer to pages 24 and 25 for the Balance Sheet of Governmental Funds, page 26 for the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position, pages 27 and 28 for the Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds, and page 29 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 30 through 33.

Capital Assets Administration
The City's investments in capital assets on June 30, 2025, were $312.282 million (net of accumulated depreciation of $168.916 million) for its governmental activities and $63.809 million (net of accumulated depreciation of $26.285 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, lease assets, and construction in progress.

City of Pico Rivera
Capital Assets
(Net of Accumulated Depreciation)
Fiscal Year ended June 30, 2025 and June 30, 2024
Additional information on the City's capital assets can be found in Note 5 to the basic financial statements on pages 56 to 57 of this report.
2025 2024 2025 2024 2025 2024
Land* $123,157,407 $120,696,364 $18,170,692 $18,174,060 $141,328,099 $138,870,424 Structures & Improvements 16,902,611 25,590,725 6,913,520 7,132,351 23,816,131 32,723,076 Furniture, Equipment & Vehicles 5,390,949 8,584,980 2,434,194 3,106,401 7,825,143 11,691,381 Infrastructure 310,535,446 286,592,464 34,871,709 22,121,739 345,407,155 308,714,203 Construction in progress 24,997,571 20,636,053 338,280 10,685,501 25,335,851 31,321,554 Right to Use Assets 213,988 - - 213,988 -
Rights of Way - 5,579,916 - 5,579,916 5,579,916 5,579,916 Utility Plant - 21,785,673 - 21,785,673 21,785,673 21,785,673 Total Capital Assets $481,197,972 $462,314,574 $90,093,984 $88,585,641 $571,291,956 $550,900,215 Less depreciation (170,609,573) (168,915,833) (26,284,844) (26,679,568) (365,810,250) (195,200,677) Net Capital Assets $312,282,139 $291,705,001 $63,809,140 $61,906,073 $376,091,279 $353,611,074 *Includes value of "Water Rights" for Business-Type Activities Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
Debt Administration
As of June 30, 2025, the City's total indebtedness was $110.345 million, a decrease of $3.024 million compared to the prior fiscal year. Debt includes bonds, certificates of participation, pension obligations, postemployment benefits, capital lease obligations, lease liability, 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 $93.228 million. Governmental activities’ total indebtedness decreased by $2.826 million during the year, primarily due to the decrease in claims and judgments by $1.350 million and revenue bonds by $1.065 million. Please refer to Note 6 on pages 58 to 60 for further details.

Business-type activities - Overall, business-type debt at year-end is $17.117 million, a decrease of $198 thousand from the prior year. This change is primarily due to a $1.102 million increase in net pension liabilities, offset by a $1.255 million principal payment on the 1999 Water Authority Revenue Bonds.

City of Pico Rivera
Outstanding Long-Term Liabilities
Fiscal Year ended June 30, 2025, and June 30, 2024

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
As of June 30, 2025, the General Fund reported an operating surplus of $7.434 million (operating revenues minus operating expenditures). When factoring in Transfers In and Transfers Out, the net change in fund balance was $1.460 million.

The Fiscal Year 2025-26 General Fund budget is balanced. The City's sales tax revenue is projected to increase by 4.1% and property tax revenue is projected to grow by 3.1% in FY 2025-26. Nationally, the economy is experiencing moderate growth, stable inflation rates, and a continuing recovery in the labor market. While inflation has shown signs of easing, upward pressures persist due to ongoing geopolitical tensions and potential changes in trade policy. Job growth is anticipated to slow as demographic trends impact labor force participation. In response, the Federal Reserve is likely to continue reducing interest rates to stimulate the economy. Ongoing geopolitical conflicts may drive higher oil prices and renewed inflationary pressures, while changes in trade policy could increase costs for both consumers and businesses.

With these conditions in mind, the City is committed to developing responsible budgets that provide 2025 2024 2025 2024 2025 2024
Bonded Indebtedness:

Revenue bonds $ 21,870,000 $ 22,935,000 $ 5,735,000 $ 6,990,000 $ 27,605,000 $ 29,925,000 Certificates of Participation 12,785,000 13,105,000 - - 12,785,000 13,105,000 Bond premium 2,415,356 2,572,829 152,790 192,648 2,568,146 2,765,477 Other long-term debt:

Net pension liabilities 35,973,697 35,639,209 8,702,938 7,601,404 44,676,635 43,240,613 Other post-employment benefits 15,901,664 16,305,924 1,985,472 2,118,847 17,887,136 18,424,771 Lease Liability 74,874 120,183 74,874 120,183
Claims and judgements 2,157,000 3,507,000 - - 2,157,000 3,507,000 Compensated absences 2,049,941 1,868,520 541,067 412,682 2,591,008 2,281,202 Total Indebtedness $ 93,227,532 $ 96,053,665 $ 17,315,581 17,117,267 $ $ 113,369,246 110,344,799 $ Governmental Activities Business-Type Activities Total
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CITY OF PICO RIVERA
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2025
essential services to residents and reflect the City Council’s priorities. Ongoing efforts will prioritize the City’s fiscal health, emphasizing financial sustainability and stability in future budget planning.

The budget document will serve as the basis for ongoing efforts to monitor the City's finances. Staff provides monthly and quarterly updates to the City Council to ensure the City stays within 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.

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CITY OF PICO RIVERA, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(20)
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments 121,788,981 $ 34,018,321 $ 155,807,302 $ Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 3,899,756 881,384 4,781,140 Escrow Deposits 2,782 - 2,782
Receivables, Net:

Accounts 6,144,965 8,755,509 14,900,474
Taxes 6,472,517 - 6,472,517
Interest 659,588 127,879 787,467
Internal Balances 16,456,239 (16,456,239) -
Inventories 3,825 - 3,825
Prepaid Items 140,032 1,171,196 1,311,228
Long-Term Receivables 3,726,857 - 3,726,857
Land Held for Resale 1,701,360 - 1,701,360
Receivables from Successor Agency 14,115,073 201,496 14,316,569 Capital Assets, Not Depreciated 148,154,978 24,088,888 172,243,866 Capital Assets, Depreciated, Net 164,127,161 39,720,252 203,847,413 Total Assets 487,394,114 92,508,686 579,902,800

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amount on Refunding 1,289,999 - 1,289,999
Amounts Related to OPEB 3,014,510 376,390 3,390,900
Amounts Related to Pension Plans 7,468,811 1,809,215 9,278,026 Total Deferred Outflows of Resources 11,773,320 2,185,605 13,958,925

LIABILITIES
Accounts Payable 7,241,797 3,486,705 10,728,502
Accrued Interest Payable 325,022 52,571 377,593
Accrued Liabilities 1,170,811 571,317 1,742,128
Deposits 1,333,018 636,467 1,969,485
Retention Payable 1,589,220 276,488 1,865,708
Unearned Revenue 10,065,859 313,842 10,379,701
Due to Other Agencies 3,727,171 - 3,727,171
Long-Term Liabilities:

Due Within One Year 2,563,447 1,374,107 3,937,554
Due in More Than One Year:

Long-Term Liabilities 38,742,309 5,054,750 43,797,059
Lease Liability 46,415 - 46,415
Net OPEB Liability 15,901,664 1,985,472 17,887,136
Net Pension Liability 35,973,697 8,702,938 44,676,635
Total Liabilities 118,680,430 22,454,657 141,135,087

DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 2,189,435 273,371 2,462,806
Amounts Related to Pension Plans 3,717 - 3,717
Total Deferred Inflows of Resources 2,193,152 273,371 2,466,523

NET POSITION
Net Investment in Capital Assets 273,223,608 56,922,589 330,146,197 Restricted for Community Development 15,198,772 - 15,198,772 Restricted for Transportation 15,727,976 - 15,727,976
Restricted for Low- and Moderate-Income Housing 2,362,767 - 2,362,767 Restricted for Pension Contribution 2,245,835 - 2,245,835 Restricted for Other Purposes 877,741 - 877,741
Unrestricted 68,657,153 15,043,674 83,700,827
Total Net Position $ 378,293,852 $ 71,966,263 $ 450,260,115

CITY OF PICO RIVERA, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
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Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions

FUNCTIONS/PROGRAMS
Governmental Activities:

General Government $ 16,014,552 $ 655,563 $ 4,992,296 $ - Public Safety 14,519,235 1,157,168 194,663 -
Public Works 20,145,432 1,065,807 18,191,623 2,123,072
Parks and Recreation 9,508,665 1,043,136 1,301,846 -
Health and Welfare 7,447,266 165,314 1,430,376 -
Community Development 6,280,740 2,199,278 7,032,208 -
Interest 1,306,723 - - -
Total Governmental Activities 75,222,613 6,286,266 33,143,012 2,123,072 Business-Type Activities:

Water 10,548,472 17,105,110 - 929,276
Pico Rivera Innovative Municipal Energy 24,735,685 28,363,839 - - Sports Arena 347,944 331,933 - -
Golf 2,017,969 1,343,757 - -
Total Business-Type Activities 37,650,070 47,144,639 - 929,276 Total $ 112,872,683 $ 53,430,905 $ 33,143,012 $ 3,052,348

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

SPECIAL ITEM
Forgiveness of Debt

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, 2025
See accompanying Notes to Financial Statements.
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Governmental Business-Type
Activities Activities Total
$ - (10,366,693) $ $ (10,366,693)
(13,167,404) - (13,167,404)
1,235,070 - 1,235,070
(7,163,683) - (7,163,683)
(5,851,576) - (5,851,576)
2,950,746 - 2,950,746
(1,306,723) - (1,306,723)
(33,670,263) - (33,670,263)
- 7,485,914 7,485,914
- 3,628,154 3,628,154
- (16,011) (16,011)
- (674,212) (674,212)
- 10,423,845 10,423,845
(33,670,263) 10,423,845 (23,246,418)
16,207,096 - 16,207,096
26,839,604 - 26,839,604
2,048,636 - 2,048,636
4,182,473 - 4,182,473
5,061,751 - 5,061,751
5,163,739 1,719,249 6,882,988
107,312 2,777 110,089
2,671,053 - 2,671,053
(42,650) 42,650 -
62,239,014 1,764,676 64,003,690
(1,152,183) - (1,152,183)
12,188,521 27,416,568 39,605,089
350,877,284 59,777,742 410,655,026
$ 378,293,852 $ 71,966,263 $ 450,260,115
Changes in Net Position
Net (Expense) Revenue and
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CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF MAJOR FUNDS
JUNE 30, 2025
(23)

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.

County Grants Special Revenue Fund accounts for various Los Angeles County grants that are received for restricted expenditures for specific programs and projects.

State Grants Special Revenue Fund accounts for the various state of California grants that are restricted to expenditures for specific programs and projects.

Capital Improvement Capital Projects Fund accounts for acquisition or construction of major capital facilities.
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 FUNDS
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.

Pico Rivera Golf Course Fund accounts for the operations of the City-owned golf course.

Pico Rivera Sports Arena Fund (NONMAJOR) accounts for funds received from the respective private concessionaires operating each facility.

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, 2025
See accompanying Notes to Financial Statements.
(24)
Housing American
Agency Rescue
General Section 8 Plan
ASSETS
Cash and Investments 56,120,528 $ 940,638 $ $ 2,593,339 Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 2,245,835 - -
Escrow Deposits - 2,782 -
Receivables:

Accounts 1,596,934 - 100
Taxes 5,973,889 - -
Interest 420,456 - -
Due from Other Funds 323,026 - -
Inventories 3,825 - -
Advance to Other Funds 16,456,239 - -
Long-Term Receivables - - -
Prepaid Items 133,732 - -
Land Held for Resale 1,701,360 - -
Receivables from Successor Agency - 14,115,073 -
Total Assets $ 99,090,897 $ 943,420 $ 2,593,439

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 2,635,412 $ 2,147 $ 337,981
Accrued Liabilities 1,083,045 23,904 -
Due to Other Funds - - -
Deposits 1,330,236 2,782 -
Retention Payable 19,942 - 106,783
Unearned Revenue 289,779 - 2,148,675
Due to Other Agencies - 313 -
Total Liabilities 5,358,414 29,146 2,593,439

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 7,334,025 - -
Total Deferred Inflows of Resources 7,334,025 - -

FUND BALANCES (DEFICIT)
Nonspendable - 23,465,725 -
Restricted 2,311,713 914,274 -
Committed 30,868,540 - -
Assigned 26,046,510 - -
Unassigned 3,705,970 - -
Total Fund Balances (Deficit) 914,274 86,398,458 -
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 99,090,897 $ 943,420 $ 2,593,439 Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

BALANCE SHEET (CONTINUED)
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(25)
Other Total
County State Capital 2018 Series A Governmental Governmental Grants Grants Improvement COP Funds Funds
$ 7,705,466 $ 1,709 $ 23,716,879 $ - $ 29,737,034 $ 120,815,593 - - - 1,653,921 - 3,899,756
- - - - - 2,782
516 2,503,457 174 - 2,043,784 6,144,965
- - - - 498,628 6,472,517
- 1,180 - - 229,730 651,366
- - - - - 323,026
- - - - - 3,825
- - - - - 16,456,239
- - - - 3,726,857 3,726,857
- 6,300 - - - 140,032
- - - - - 1,701,360
- - - - - 14,115,073
$ 7,705,982 $ 2,512,646 $ 23,717,053 $ 1,653,921 $ 36,236,033 $ 174,453,391 $ 62,619 $ 973,687 $ 1,901,063 $ 11,866 $ 1,309,483 $ 7,234,258 9,023 11,239 - - 43,600 1,170,811
- 126,303 - 52,606 144,117 323,026
- - - - - 1,333,018
- 643,619 183,411 190,450 445,015 1,589,220
7,625,696 1,709 - - 10,065,859 -
- - - - 3,726,858 3,727,171
7,697,338 1,756,557 2,084,474 254,922 5,669,073 25,443,363 - 1,952,228 - - 1,335,185 10,621,438
- 1,952,228 - - 1,335,185 10,621,438
- - - - - 23,465,725
8,644 - - 1,398,999 29,517,734 34,151,364
- - - - - 30,868,540
- - 21,632,579 - 47,679,089 -
- (1,196,139) - - (285,959) 2,223,872
8,644 (1,196,139) 21,632,579 1,398,999 29,231,775 138,388,590 $ 7,705,982 $ 2,512,646 $ 23,717,053 $ 1,653,921 $ 36,236,033 $ 174,453,391 Special Revenue Funds Capital Projects Funds
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CITY OF PICO RIVERA, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(26)
Fund Balances (Deficits) for Governmental Funds $ 138,388,590 Amounts reported for governmental activities in the statement of net position are different because:

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

Capital Assets $ 478,476,929
Lease Assets 72,742
Less: Accumulated Depreciation (168,052,385)
Subtotal 310,497,286
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. 10,621,438 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. 2,758,924
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 (2,049,941)
Claims Payable (2,157,000)
Accrued Interest Payable (325,022)
Lease Liability (74,874)
Revenue Bonds Payable (37,070,356)
Deferred Amount on Refunding 1,289,999
Subtotal (40,387,194)
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 3,014,510 Deferred Inflows of Resources Related to OPEB (2,189,435) Net OPEB Liability (15,901,664)
Deferred Outflows of Resources Related to Pensions 7,468,811 Deferred Inflows of Resources Related to Pensions (3,717) Net Pension Liability (35,973,697)
Subtotal (43,585,192)
Net Position of Governmental Activities $ 378,293,852

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(27)
Housing American
Agency Rescue
General Section 8 Plan

REVENUES
Taxes and Assessments 47,303,229 $ - $ $ -
Licenses and Permits 7,459,364 - -
Intergovernmental 294,728 7,132,854 2,396,080
Charges for Services 1,691,781 - -
Fines, Forfeitures, and Penalties 1,170,079 - -
Investment and Rental 3,158,099 500 -
Miscellaneous 2,583,808 38,204 -
Total Revenues 63,661,088 7,171,558 2,396,080

EXPENDITURES
Current:

General Government 15,484,213 - -
Public Safety 14,507,237 - -
Public Works 10,933,008 - 2,396,080
Parks and Recreation 7,137,206 - -
Health and Welfare - 7,114,818 -
Community Development 6,191,183 - -
Capital Outlay - - -
Debt Service:

Principal 1,065,000 - -
Interest and Fiscal Charges 860,550 - -
Lease Principal 45,309 - -
Lease Interest 3,268 - -
Total Expenditures 56,226,974 7,114,818 2,396,080

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,434,114 56,740 -
OTHER FINANCING SOURCES (USES):

Transfers In 1,723,969 - -
Transfers Out (7,724,637) - -
Gain on Sale of Capital Assets 26,100 - -
Total Other Financing Sources (Uses) (5,974,568) - -

SPECIAL ITEM
Forgiveness of Debt - - -
NET CHANGE IN FUND BALANCES 1,459,546 56,740 -
Fund Balances (Deficits) - Beginning of Year 857,534 84,938,912 - FUND BALANCES (DEFICITS) - END OF YEAR $ 914,274 86,398,458 $ - $ Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(28)
2018 Other Total
County State Capital Series A Governmental Governmental Grants Grants Improvement COP Funds Funds
$ - $ - $ - $ - $ 2,229,375 $ 49,532,604
- - - - - 7,459,364
237,510 14,148,623 - 13,914,672 - 38,124,467
- - - - 679,700 2,371,481
- - - - - 1,170,079
- (42,265) - 203,411 1,527,851 4,847,596
- - - - 189,220 2,811,232
237,510 14,106,358 - 203,411 18,540,818 106,316,823
- - - - 49,057 15,533,270
- - - - - 14,507,237
- - - 4,309,891 - 17,638,979
94,502 - - 1,157,401 - 8,389,109
- 332,448 - - - 7,447,266
- - - - 198,100 6,389,283
196,328 10,222,691 4,276,557 3,930,885 7,562,304 26,188,765 - - - 320,000 - 1,385,000
- - - 516,669 - 1,377,219
- - - - - 45,309
- - - - - 3,268
290,830 10,555,139 4,276,557 4,767,554 13,276,753 98,904,705 (53,320) 3,551,219 (4,276,557) (4,564,143) 5,264,065 7,412,118 - - 7,681,987 839,169 - 10,245,125
- - - (2,563,138) - (10,287,775)
- - - - - 26,100
- - 7,681,987 839,169 (2,563,138) (16,550)
- - - (1,152,183) - (1,152,183)
(53,320) 3,551,219 3,405,430 (3,724,974) 1,548,744 6,243,385 61,964 (4,747,358) 18,227,149 5,123,973 27,683,031 132,145,205 $ 8,644 $ (1,196,139) $ 21,632,579 $ 1,398,999 $ 29,231,775 $ 138,388,590 Special Revenue Funds Capital Projects Funds

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, 2025
See accompanying Notes to Financial Statements.
(29)
Net Change in Fund Balances - Total Governmental Funds $ 6,243,385 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 $ 33,575,226
Loss on Disposal (5,973,871)
Depreciation Expense (7,180,138)
Subtotal 20,421,217
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 274,357
Grant and Other Revenue Not Available to Pay
for Current-Period Expenditures (2,938,813)
Subtotal (2,664,456)
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 1,350,000
Net Change in Compensated Absences (181,421)
Subtotal 1,168,579
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 1,385,000
Principal Payments on Lease Liabilities 45,309
Amortization of Deferred Bond Charges 65,331
Change in Accrued Interest 8,433
Subtotal 1,504,073
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. 40,755 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. 1,338,597 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. (635,582)
Change in Net Position of Governmental Activities $ 27,416,568

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(30)
Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Enterprise Internal
Operations Energy Course Fund Total Service Fund
ASSETS
Current Assets:

Cash and Investments 13,576,997 $ 19,425,592 $ - $ $ 1,015,732 $ 34,018,321 $ 973,388 Receivables, Net:

Accounts 4,392,507 4,123,505 239,497 - 8,755,509 -
Interest 119,735 - - 8,144 127,879 8,222
Prepaids 5,948 1,165,248 - 1,171,196 - -
Total Current Assets 18,095,187 24,714,345 239,497 1,023,876 44,072,905 981,610 Noncurrent Assets:

Restricted Cash and Investments
with Fiscal Agent 881,384 - - - 881,384 -
Receivables from Successor Agency 201,496 - - - 201,496 - Capital Assets, Not Depreciated 24,049,943 - 38,945 - 24,088,888 - Capital Assets, Depreciated, Net 39,526,988 - 192,162 1,102 39,720,252 1,784,853 Total Noncurrent Assets 64,659,811 - 231,107 1,102 64,892,020 1,784,853 Total Assets 82,754,998 24,714,345 470,604 1,024,978 108,964,925 2,766,463

DEFERRED OUTFLOWS OF RESOURCES
Amounts Related to OPEB 345,872 30,518 - - 376,390 -
Amount Related to Pensions 1,642,211 120,614 9,278 37,112 1,809,215 - Total Deferred Outflows of Resources 1,988,083 151,132 9,278 37,112 2,185,605 -

LIABILITIES
Current Liabilities:

Accounts Payable 1,684,344 1,661,717 140,644 - 3,486,705 7,539 Accrued Interest Payable 52,571 - - - 52,571 -
Accrued Liabilities 161,118 365,615 34,573 10,011 571,317 - Unearned Revenue 268,662 45,180 - - 313,842 -
Deposits 636,467 - - - 636,467 -
Retentions Payable 276,488 - - - 276,488 -
Bonds Payable - Current Portion 1,320,000 - - 1,320,000 - - Compensated Absences - Current Portion 47,402 6,705 - - 54,107 - Total Current Liabilities 4,447,052 2,079,217 175,217 10,011 6,711,497 7,539 Noncurrent Liabilities:

Advance from Other Funds 11,539,634 - 4,916,605 - 16,456,239 - Bonds Payable 4,567,790 - - 4,567,790 - -
Compensated Absences 426,614 60,346 - - 486,960 -
Net OPEB Liability 1,824,488 160,984 - 1,985,472 - -
Net Pension Liability 7,899,590 580,196 44,630 178,522 8,702,938 - Total Noncurrent Liabilities 26,258,116 801,526 4,961,235 178,522 32,199,399 - Total Liabilities 30,705,168 2,880,743 5,136,452 188,533 38,910,896 7,539

DEFERRED INFLOWS OF RESOURCES
Amounts Related to OPEB 251,206 22,165 - - 273,371 -
Total Deferred Inflows of Resources 251,206 22,165 - - 273,371 -

NET POSITION
Net Investment in Capital Assets 56,690,380 - 231,107 1,102 56,922,589 1,784,853 Unrestricted (2,903,673) 21,962,569 (4,887,677) 872,455 15,043,674 974,071 Total Net Position $ 53,786,707 $ 21,962,569 $ (4,656,570) $ 873,557 $ 71,966,263 $ 2,758,924 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, 2025
See accompanying Notes to Financial Statements.
(31)
Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Enterprise Internal
Operations Energy Course Fund Total Service Fund

OPERATING REVENUES
Charges for Services 13,795,057 $ 28,319,028 $ 1,206,335 $ $ 331,933 $ 43,652,353 $ - Miscellaneous 3,310,053 44,811 137,422 - 3,492,286 334,371 Total Operating Revenues 17,105,110 28,363,839 1,343,757 331,933 47,144,639 334,371

OPERATING EXPENSES
Cost of Power 23,212,447 - - - 23,212,447 -
Salaries and Benefits 4,210,648 560,045 33,274 215,790 5,019,757 - Contractual Services 815,356 844,285 208,146 124,998 1,992,785 - Insurance Claims and Expenses 426,602 573 - 5,979 433,154 - Administrative 2,577,293 118,335 1,420,505 - 4,116,133 - Utilities 495,784 - 192,608 - 688,392 -
Repairs and Maintenance 515,688 - 133,225 - 648,913 135,471 Depreciation 1,174,013 - 30,211 1,177 1,205,401 313,692 Total Operating Expenses 10,215,384 24,735,685 2,017,969 347,944 37,316,982 449,163 OPERATING INCOME (LOSS) 6,889,726 3,628,154 (674,212) (16,011) 9,827,657 (114,792)

NONOPERATING REVENUES
(EXPENSES)
Investment Income 957,187 699,484 - 62,578 1,719,249 74,335 Gain (Loss) on Disposal of Capital Assets 16,500 - (9,913) (3,810) 2,777 81,212 Interest Expense (333,088) - - - (333,088) -
Total Nonoperating
Revenues (Expenses) 640,599 699,484 (9,913) 58,768 1,388,938 155,547

INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS 7,530,325 4,327,638 (684,125) 42,757 11,216,595 40,755 CAPITAL CONTRIBUTIONS 929,276 - - - 929,276 -
TRANSFERS IN - - 42,650 - 42,650 -
CHANGES IN NET POSITION 8,459,601 4,327,638 (641,475) 42,757 12,188,521 40,755 Net Position (Deficit) - Beginning of Year 45,327,106 17,634,931 (4,015,095) 830,800 59,777,742 2,718,169 NET POSITION (DEFICIT) - END OF YEAR $ 53,786,707 $ 21,962,569 $ (4,656,570) $ 873,557 $ 71,966,263 $ 2,758,924 Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(32)
Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Sports Internal
Operations Energy Course Arena Total Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 15,479,895 $ 28,418,576 $ 1,406,329 $ 331,933 $ 45,636,733 $ 334,371 $ Payments to Suppliers (3,875,049) (23,158,928) (2,148,486) (158,977) (29,341,440) (128,011) Payments to Employees (3,496,422) (454,954) (28,966) (129,073) (4,109,415) - Net Cash Provided (Used) by Operating Activities 8,108,424 4,804,694 (771,123) 43,883 12,185,878 206,360

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Proceeds (Repayments) of Long-Term Advances (4,544,655) - (4,544,655) - - Cash Received from Other Funds - 564,682 - - 564,682 -
Net Cash Provided (Used) by Noncapital Activities (4,544,655) 564,682 - - (3,979,973) -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of Capital Assets (3,109,245) (12,947) - - (3,122,192) (388,402) Transfers Received from Other Funds for Capital Purposes - 42,650 - - 42,650 - Contirbutions Received 929,276 - - 929,276 - -
Proceeds from Sale of Capital Assets 16,500 - - 16,500 - - Principal Retired (1,255,000) - - - (1,255,000) -
Interest Paid (384,450) - - (384,450) - -
Net Cash Provided (Used) by Capital and
Related Financing Activities (3,802,919) 29,703 - - (3,773,216) (388,402)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 904,985 699,484 - 59,515 1,663,984 73,885 Net Cash Provided by Investing Activities 904,985 699,484 - 59,515 1,663,984 73,885

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 665,835 5,504,178 (176,738) 103,398 6,096,673 (108,157) Cash and Cash Equivalents - Beginning of Year 13,792,546 13,921,414 176,738 912,334 28,803,032 1,081,545 CASH AND CASH EQUIVALENTS - END OF YEAR $ 14,458,381 $ 19,425,592 $ - $ 1,015,732 $ 34,899,705 $ 973,388 Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(33)
Governmental
Activities
Pico Rivera Equipment
Innovative Nonmajor Replacement
Water Municipal Golf Sports Internal
Operations Energy Course Arena Total Service Fund

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

BY OPERATING ACTIVITIES
Operating Income (Loss) 6,889,726 $ 3,628,154 $ (674,212) $ (16,011) $ 9,827,657 $ (114,792) $ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 1,174,013 30,211 - 1,177 1,205,401 313,692 Changes in Operating Assets, Deferred Outflows of
Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable (1,644,290) 54,737 62,572 - (1,526,981) - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to OPEB 33,836 13,720 - 47,556 - - (Increase) Decrease in Deferred Outflows of
Resources - Amount Related to Pensions 9,386 (16,250) (159) (18,874) (25,897) - Increase (Decrease) in Accounts Payable 906,453 (629,915) (192,329) (28,000) 56,209 7,460 Increase (Decrease) in Accrued Liabilities 35,420 (4,805) (657) 6,082 36,040 - Increase (Decrease) in Unearned 5,720 - - - 5,720 -
Increase (Decrease) in Deposits Payable 13,355 - - 13,355 - - Increase (Decrease) in Retentions Payable 49,221 - (1,673) - 47,548 - Increase (Decrease) in Net OPEB Liability (73,264) (60,114) - (133,378) - - Increase (Decrease) in Net Pension Liability 859,654 135,341 5,759 100,780 1,101,534 - Increase (Decrease) in Compensated Absences 105,539 22,847 - 128,386 - - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to OPEB (141,217) (23,554) - (164,771) - - Increase (Decrease) in Deferred Inflows of
Resources - Amounts Related to Pensions (115,128) 37,906 (635) (1,271) (79,128) - Total Adjustments 1,218,698 1,176,540 (96,911) 59,894 2,358,221 321,152 Net Cash Provided (Used) by Operating Activities $ 8,108,424 $ 4,804,694 $ (771,123) $ 43,883 $ 12,185,878 $ 206,360 Business-Type Activities - Enterprise Funds

CITY OF PICO RIVERA, CALIFORNIA

FIDUCIARY FUND

DESCRIPTION OF FIDUCIARY FUND
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(34)
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, 2025
See accompanying Notes to Financial Statements.
(35)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund
ASSETS
Cash and Investments $ 4,537,608
Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 4,307
Interest Receivable 51,772
Loans Receivable 301,767
Total Assets 4,895,454

DEFERRED OUTFLOWS OF RESOURCES
Loss on Refunding 110,614

LIABILITIES
Accrued Liabilities 4,864
Interest Payable 3,316
Payable to City of Pico Rivera 50,954,888
Payable to the County of Los Angeles 39,680,112
Bond payable 2,635,000
Total Liabilities 93,278,810

NET POSITION
Held in Trust for Successor Agency (88,272,742)
Total Net Position $ (88,272,742)

CITY OF PICO RIVERA, CALIFORNIA

FIDUCIARY FUND

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(36)
Successor
Agency to the
City of Pico Rivera
Redevelopment
Agency
Private-Purpose
Trust Fund

ADDITIONS
Taxes $ 4,377,456
Contributions 1,065,000
Investment Earnings 451,695
Total Additions 5,894,151

DEDUCTIONS
Administrative Expenses 413,740
Interest 1,925,187
Depreciation 4,368
Total Deductions 2,343,295

SPECIAL ITEM
Forgiveness of Debt 1,152,183
CHANGE IN NET POSITION 4,703,039
Net Position - Beginning of Year (92,975,781)
NET POSITION - END OF YEAR $ (88,272,742)
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CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(37)
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, 2025
(38)
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, 2025
(39)
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, 2025
(40)
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 County Grants Special Revenue Fund accounts for grants received from Los Angeles County that are received for restricted expenditures for specific programs and projects.

The State Grants Special Revenue Fund accounts for grants received from the state of California that are received for restricted expenditures for specific programs and projects.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(41)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The Capital Improvement Capital Projects Fund accounts acquisition or construction of major capital facilities.

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.

The Pico Rivera Golf Course Fund account for the operations of the City-owned golf course.

The City reports the following nonmajor enterprise fund:

The Pico Rivera Sports Arena Fund accounts for funds received from the respective private concessionaires operating each facility.

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.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(42)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
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 101
Effective July 1, 2024, the City implemented GASB Statement No. 101, Compensated Absences. See Notes 1L and 6 for more information.

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.

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.”

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(43)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Interfund Transactions (Continued)
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.

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

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(44)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued)
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 $10,000, 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.

K. Land Held for Resale
Land held for resale is carried at the lower of acquisition cost or fair value.

L. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

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.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(45)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 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 outflows related to pensions resulting from the difference in projected and actual earnings on investments of the pension plan fiduciary net position.

These amounts are amortized over five years.
 Deferred outflows related to pensions resulting from the difference in 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 through the plans.

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.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(46)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Deferred Outflows/Inflows of Resources (Continued)
 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.  Deferred outflows related to pensions resulting from the difference in 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 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.

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.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(47)
NOTE 1 REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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, 2025
(48)
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, 2025
(49)
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2025, are classified in the accompanying financial statements as follows:

Government Fiduciary
Wide Funds Total
Unrestricted Assets:

Cash and Investments 155,807,302 $ 4,537,608 $ 160,344,910 $ Restricted Cash and Investments:

Cash and Investments with Fiscal Agents 4,781,140 4,307 4,785,447 Escrow Deposits 2,782 - 2,782
Total Cash and Investments $ 4,541,915 160,591,224 $ $ 165,133,139 Statement of Net Position
Cash and investments at June 30, 2025, consisted of the following:

Cash on Hand $ 6,935
Deposits with Financial Institutions 44,695,983
Investments 120,430,221
Total Cash and Investments $ 165,133,139
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.

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. ** The limit is per account, the City has three accounts: Operating, Covid Relief Emergency Account and Section 8 N/A - Not Applicable

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(50)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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.

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 $ 80,923,277 $ - $ - $ 80,923,277 U.S. Government Sponsored
Agency Securities 942,227 1,594,721 2,955,999 5,492,947 U.S. Treasury Notes 4,706,163 4,363,598 6,009,777 15,079,538 Money Market Mutual Funds 209,380 - - 209,380
Supranational - 898,035 668,534 1,566,569
Medium-Term Notes 1,095,035 4,821,235 6,456,793 12,373,063 Held by Fiscal Agent:

Money Market Mutual Funds 2,539,612 - - 2,539,612
PARS Trust Pooled Investments 2,245,835 - - 2,245,835
Total $ 92,661,529 $ 11,677,589 $ 16,091,103 $ 120,430,221 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:

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(51)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk (Continued)
Minimum
Legal Total as of Not
Investment Type Rating June 30, 2025 AAA AA+ AA Other Rated Local Agency Investment Fund N/A 80,923,277 $ $ - $ - $ - $ 80,923,277 - $ U.S. Government Sponsored
Agency Securities N/A 5,492,947 3,291,566 2,201,381 - - - U.S. Treasury Notes* N/A 15,079,538 - - - - 15,079,538
Money Market Mutual Funds N/A 209,380 209,380 - - - -
Supranational A 1,566,569 1,566,569 - - - -
Medium-Term Notes A 12,373,063 2,609,056 - 863,551 5,609,971 3,290,485 Held by Fiscal Agent:

Money Market Mutual Funds N/A 2,539,612 2,539,612 - - - - PARS Trust Pooled Investments N/A 2,245,835 - - - - 2,245,835 Total $ 120,430,221 $ 10,216,183 $ 2,201,381 $ 863,551 $ 5,609,971 $ 101,539,135 Rating as of Fiscal Year-End
* U.S. Treasury Notes are not required to be rated.

The ratings for the “Other” category above are as follows:

Total as of
Investment Type June 30, 2025 AA- A+ A
Medium-Term Notes $ 5,609,971 $ 1,349,817 $ 2,561,115 $ 1,699,039 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, 2025, 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.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(52)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
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.

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 $ - $ 1,566,569 $ - $ 1,566,569
Medium-Term Notes - 12,373,063 - 12,373,063
U.S. Treasury Notes - 15,079,538 - 15,079,538
U.S. Government Sponsored
Agency Securities - 5,492,947 - 5,492,947
Total Leveled Investments $ - $ 34,512,117 $ - 34,512,117 Investments Not Subject to Fair Value Hierarchy:

Local Agency Investment Fund 80,923,277
Money Market Mutual Funds 209,380
Held by Trustee:

Money Market Mutual Funds 2,539,612
PARS Trust Pooled Investments 2,245,835
Total Investment Portfolio $ 120,430,221

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(53)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of June 30, 2025, is as follows:

Advances To/From Other Funds
Advances to Other Funds Advances from Other Funds Amount General Fund Water Operations Enterprise Fund $ 11,539,634 Golf Course Enterprise Fund 4,916,605
Total $ 16,456,239
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. A payment of $4.5 million was made from the Water Operations Enterprise Fund to the General Fund during fiscal year 2024-25, as the City is utilizing $4.5 million in ARPA funding to support the Water Main Replacement Project during fiscal years 2024-25 and 2025-26. The balance of the advance at June 30, 2025, is $11,539,634.

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, 2025, is as follows:

Receivable Fund Payable Fund Amount
General Fund Other Governmental Funds $ 144,117
State Grants Special Revenue Fund 126,303
2018 Series A COP Special Revenue Fund 52,606
Total $ 323,026
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, 2025
(54)
NOTE 3 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) Transfers
Transfers Out Transfers In Amount
General Fund Capital Improvement (1) $ 7,681,987
Golf Course Enterprise Fund (1) 42,650
Other Governmental Funds General Fund (2) 1,723,969
2018 Series A COP Capital Projects Fund (3) 839,169
Total $ 10,287,775
(1) The General Fund transferred $7,681,987 to Capital Improvement Fund for approved capital outlays and $42,650 to the Golf Course Enterprise Fund for capital outlays. (2) The Other Governmental Funds – State Gas Tax Fund transferred $1,723,969 to General Fund for approved street maintenance activities and capital outlays. (3) The Other Governmental Fund – Measure M transferred $839,169 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, 2025, is $2,449,414 and is included in the HOME Grant Special Revenue Fund. At June 30, 2025, the City has an allowance of $871,209 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, 2025, totaled $176,409. At June 30, 2025, the City has an allowance of $45,900 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, 2025, is $1,101,034. At June 30, 2025, the City has an allowance of $166,521 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, 2025
(55)
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 $16,911 allowance, were zero at June 30, 2025.

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 10% per annum. The outstanding principal and interest balance at June 30, 2025, was $287,050 and $240,782, 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
Operations
General Enterprise
Description Fund Fund
Long-Term Loans to Finance Improvements
and Operations Related to and Within the
Former Redevelopment Agency's Project Areas 18,820,098 $ 268,662 $ Sales Tax Deferral Loan to Allow Former
Redevelopment Agency to Meet its Debt
Service Obligations 31,866,128 -
Subtotal 50,686,226 268,662
Reserve on Long-Term Loans (4,705,025) (67,166)
Reserve on Sales Tax Deferral Loan (31,866,128) -
Total $ 14,115,073 $ 201,496

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(56)
NOTE 5 CAPITAL AND LEASE ASSETS
Governmental Activities
Capital and lease asset activity for the year ended June 30, 2025, was as follows:

Balance at Balance at
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital Assets, Not Being
Depreciated:

Land $ 120,696,364 $ 4,162,403 $ (1,701,360) $ - $ 123,157,407 Construction in Progress 20,636,053 29,089,669 (785,169) (23,942,982) 24,997,571 Total Capital Assets, Not
Being Depreciated 141,332,417 33,252,072 (2,486,529) (23,942,982) 148,154,978 Capital Assets, Being Depreciated
and Amortized
Structures and Improvements 25,590,725 28,473 (8,716,587) - 16,902,611 Furniture and Equipment 8,584,980 719,156 (3,913,187) - 5,390,949 Infrastructure 286,592,464 - - 23,942,982 310,535,446
Right to Use Asset - Equipment 213,988 - - - 213,988
Total Capital Assets, Being
Depreciated and Amortized 320,982,157 747,629 (12,629,774) 23,942,982 333,042,994 Less Accumulated Depreciation for:

Structures and Improvements (14,229,260) (517,212) 5,386,054 - (9,360,418) Furniture and Equipment (5,492,086) (574,738) 3,756,378 - (2,310,446) Infrastructure (150,792,119) (6,311,604) - - (157,103,723) Less Accumulated Amortization for:

Right to Use Asset - Equipment (96,108) (45,138) - - (141,246) Total Accumulated
Depreciation/Amortization (170,609,573) (7,448,692) 9,142,432 - (168,915,833) Total Capital Assets, Being
Depreciated Amortized, Net 150,372,584 (6,701,063) (3,487,342) 23,942,982 164,127,161 Governmental Activities
Capital and Right to Use Assets 291,705,001 $ $ 26,551,009 $ (5,973,871) $ - $ 312,282,139 Depreciation expense was charged to functions of the governmental activities as follows:

General Government $ 284,110
Public Safety 11,998
Public Works 5,922,036
Parks and Recreation 1,215,095
Community Development 15,453
Total Depreciation Expense $ 7,448,692
Amortization expense was charged to general government.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(57)
NOTE 5 CAPITAL AND LEASE ASSETS (CONTINUED)
Business-Type Activities
Capital asset activity for the year ended June 30, 2025, was as follows:

Balance at Balance at
July 1, 2024 Additions Deletions Transfers June 30, 2025 Capital Assets, Not Being
Depreciated:

Land $ 18,174,060 $ - $ (3,368) $ - $ 18,170,692
Rights of Way 5,579,916 - - - 5,579,916
Construction in Progress 10,685,501 2,944,397 - (13,291,618) 338,280 Total Capital Assets, Not
Being Depreciated 34,439,477 2,944,397 (3,368) (13,291,618) 24,088,888 Capital Assets, Being Depreciated:

Structures and Improvements 7,132,351 11,441 (230,272) - 6,913,520 Utility Plant in Service 21,785,673 - - - 21,785,673
Equipment 3,106,401 334,632 (1,006,839) - 2,434,194
Infrastructure 22,121,739 - (541,648) 13,291,618 34,871,709 Total Capital Assets,
Being Depreciated 54,146,164 346,073 (1,778,759) 13,291,618 66,005,096 Less Accumulated Depreciation for:

Structures and Improvements (4,422,043) (92,971) 218,621 - (4,296,393) Utility Plant in Service (9,080,136) (367,622) - - (9,447,758) Equipment (1,652,995) (245,190) 839,856 - (1,058,329)
Infrastructure (11,524,394) (499,618) 541,648 - (11,482,364) Total Accumulated
Depreciation (26,679,568) (1,205,401) 1,600,125 - (26,284,844) Total Capital Assets,
Being Depreciated, Net 27,466,596 (859,328) (178,634) 13,291,618 39,720,252 Business-Type Activities
Capital Assets, Net $ 61,906,073 $ 2,085,069 $ (182,002) $ - $ 63,809,140 Depreciation expense was charged to functions of the business-type activities as follows:

Water Operations $ 1,174,013
Sports Arena 1,177
Golf Course 30,211
Total Depreciation Expense $ 1,205,401

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(58)
NOTE 6 LONG-TERM LIABILITIES
Changes in long-term liabilities activity for the year ended June 30, 2025, were as follows:

Balance at Balance at Due Within Due in More
July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Governmental Activities:

Other Debt:
2016 Lease Revenue Bonds 22,935,000 $ $ - $ (1,065,000) $ 21,870,000 $ 1,085,000 $ 20,785,000 Bond Premium 2,010,154 - (134,028) 1,876,126 - 1,876,126 2018 Series A Certificates
of Participation 13,105,000 - (320,000) 12,785,000 335,000 12,450,000 Bond Premium 562,675 - (23,445) 539,230 - 539,230
Other Liabilities:

Lease Liability 120,183 - (45,309) 74,874 28,459 46,415 Compensated Absences 1,868,520 (1 181,421 ) - 2,049,941 409,988 1,639,953 Claims and Judgements 3,507,000 222,445 (1,572,445) 2,157,000 705,000 1,452,000 Total Governmental
Activities $ 44,108,532 $ 403,866 $ (3,160,227) $ 41,352,171 $ 2,563,447 $ 38,788,724 Business-Type Activities:

Other Debt:

Revenue Bonds Payable $ 6,990,000 $ - $ (1,255,000) $ 5,735,000 $ 1,320,000 $ 4,415,000 Add (Less):

Bond Premium 192,648 - (39,858) 152,790 - 152,790
Subtotal Revenue
Bonds Payable 7,182,648 - (1,294,858) 5,887,790 1,320,000 4,567,790 Other Liabilities:

Compensated Absences 412,682 (1 128,385 ) - 541,067 54,107 486,960 Total Business-Type
Activities $ 7,595,330 $ 128,385 $ (1,294,858) $ 6,428,857 $ 1,374,107 $ 5,054,750 (1) The change in compensated absences is shown as a net change.

Governmental Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amounts of $2,049,941 at June 30, 2025, are expected to be paid in future years from future resources.
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, 2025
(59)
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
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 1,200,000 724,300 1,924,300
2030 1,225,000 677,113 1,902,113
2031 - 2035 7,190,000 2,311,500 9,501,500
2036 - 2040 8,865,000 680,625 9,545,625
Total $ 21,870,000 $ 6,755,188 $ 28,625,188
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
2026 $ 335,000 $ 500,669 $ 835,669
2027 350,000 483,919 833,919
2028 370,000 466,418 836,418
2029 385,000 447,918 832,918
2030 405,000 428,669 833,669
2031 - 2035 2,350,000 1,818,594 4,168,594
2036 - 2040 2,860,000 1,307,469 4,167,469
2041 - 2045 3,395,000 772,975 4,167,975
2046 - 2048 2,335,000 165,375 2,500,375
Total $ 12,785,000 $ 6,392,006 $ 19,177,006
Business-Type Activities
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1L. The liability amount of $541,067 at June 30, 2025, is expected to be paid in future years from future resources.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(60)
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, 2025, is $600,000.

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

Year Ending June 30, Principal Interest Total
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 $ 5,735,000 $ 809,600 $ 6,544,600
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, 2025
(61)
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, 2025, totaled $432,447.

NOTE 8 DEFINED BENEFIT PENSION PLANS
The following is a summary of pension related items for the year ended June 30, 2025:

Deferred Deferred Pension
Pension Outflows Inflows Expense
Liability of Resources of Resources (Credit)
Miscellaneous Plan $ 44,630,451 $ 9,278,026 $ - $ 6,589,924 Council Plan 46,184 - 3,717 1,675
Total $ 44,676,635 $ 9,278,026 $ 3,717 $ 6,591,599
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, 2025
(62)
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, 2024, 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 Schedule 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 Compensation 2.0% to 2.5% 1.092% to 2.418% 1.0% to 2.5% Required Employee Contribution Rates 7.65% 7.65% 7.50%
Required Employer Contribution Rates:

Normal Cost Rate 10.550% 12.850% 7.930%
Payment of Unfunded Liability 3,623,372 $ - $ $ -
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, 2025
(63)
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, 2024, 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 16.44%
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 288 5
Inactive Employees Entitled to But
Not Yet Receiving Benefits 150 2
Active Employees 147 1
Total 585 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, 2025, the City contributed $5,132,724 and $3,591 to the Miscellaneous Plan and Council Plan, respectively.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(64)
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, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The net pension liability of the Council Plan is measured as of June 30, 2025, using an actuarial valuation date of June 30, 2023. 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 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Council Plan
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2025
Actuarial Cost Method Entry-Age Entry-Age
Normal Cost Normal Cost
Method Method
Actuarial Assumptions:

Discount Rate 6.90% 6.50%
Inflation 2.30% 2.30%
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, 2021. (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.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(65)
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 6.9%.

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, 2025
(66)
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 - Noncap-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 long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary’s investment consulting practice as of June 30, 2024.

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 2.00 % 0.83 % 0.80 %
U.S. Corporate Bonds 35.00 2.91 2.65
U.S. High Yield Bonds 3.00 4.03 3.48
U.S. Large Cap Equity 34.20 5.39 3.78
U.S. Small Cap Equity 1.80 6.80 4.22
Foreign Developed Equity 13.50 6.61 4.79
Emerging Markets Equity 4.50 8.78 5.73
U.S. REITs 3.00 6.71 4.46
Infrastructure - Public 3.00 5.68 4.18
Total 100.00 %
Assumed Inflation - Mean 2.28 % 2.28 %
Assumed Inflation Standard Deviation 1.47 % 1.47 %
Portfolio Real Mean Return 4.78 % 4.02 %
Portfolio Nominal Mean Return 7.06 % 6.43 %
Portfolio Standard Deviation 11.91 %

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(67)
NOTE 8 DEFINED BENEFIT PENSION PLANS (CONTINUED)
Net Pension Liability (Continued)
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.

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, 2023
(Measurement Date) $ 133,828,019 $ 90,638,230 $ 43,189,789 Changes in the Year:

Service Cost 2,263,817 - 2,263,817
Interest on the Total Pension Liability 9,347,412 - 9,347,412 Differences between Expected and
Actual Experience 4,042,290 - 4,042,290
Contribution - Employer - 4,535,344 (4,535,344)
Contribution - Employee - 1,057,253 (1,057,253)
Net Investment Income - 8,694,013 (8,694,013)
Administrative Expenses - (73,753) 73,753
Benefit Payments, Including Refunds
of Employee Contributions (7,064,954) (7,064,954) -
Net Changes 8,588,565 7,147,903 1,440,662
Balance at June 30, 2024
(Measurement Date) $ 142,416,584 $ 97,786,133 $ 44,630,451 Increase (Decrease)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(68)
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, 2024
(Measurement Date) $ 221,559 $ 170,735 $ 50,824
Changes in the Year:

Service Cost 785 - 785
Interest on the Total Pension Liability 13,992 - 13,992 Changes in Economic/Demographic - - -
Changes in Assumptions - - -
Contribution - Employer - 3,591 (3,591)
Net Investment Income - 16,693 (16,693)
Administrative Expenses - (867) 867
Benefit Payments, Including Refunds
of Employee Contributions (14,373) (14,373) -
Net Changes 404 5,044 (4,640)
Balance at June 30, 2025
(Measurement Date) $ 221,963 $ 175,779 $ 46,184
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 63,294,760 $ 44,630,451 $ 29,191,745 $ Miscellaneous
1% Decrease Current Discount 1% Increase
(5.5%) Rate (6.5%) (7.5%)
Net Pension Liability 66,486 $ 46,184 $ 29,167 $
Council

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(69)
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, 2025, the City recognized pension expense of $6,589,924 and $1,675 for the miscellaneous and council plans, respectively. At June 30, 2025, 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 5,132,724 $ - $ Differences Between Expected and Actual Experience 2,781,202 - Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments 1,364,100 -
Total Miscellaneous Plan $ 9,278,026 $ -
Differences Between Expected and Actual Experience $ - $ - Change in Assumptions - -
Net Differences Between Projected and Actual
Earnings on Plan Investments - (3,717)
Total Council Plan $ - $ (3,717)
An amount of $5,132,724 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, 2026. 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
2026 1,423,701 $ 4,227 $
2027 3,610,276 (3,669)
2028 (389,455) (3,083)
2029 (499,220) (1,192)
2030 - -
Thereafter - -
Payable to the Pension Plans
At June 30, 2025, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2025.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(70)
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, 2025, the City’s payroll covered by the defined contribution plan was $2,655,737. The City made employer contributions of $99,591 (3.75% of current covered payroll), and employees contributed $99,591 (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, 2025
(71)
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, 2024, the following current and former employees were covered by the benefit terms under the plan:

Inactive Employees or Beneficiaries
Currently Receiving Benefits 109
Inactive Employees or Beneficiaries Entitled to but
Not Yet Receiving Benefits 23
Active Employees 153
Total 285
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, 2025, the City’s cash contributions were $1,181,059 in cash benefit payments and $769,000 contributions to the trust, estimated implied subsidy was $169,000 and administrative expense paid by were $2,825 resulting in total contributions of $2,121,884.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, rolled forward to June 30, 2024, 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, 2025
(72)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) Total OPEB Liability
Actuarial Assumptions
The total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
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 8.50% Non-Medicare/7.50% Medicare (Non-Kaiser), 6.25% Medicare (Kaiser)
Decreasing to 3.45% in 2076
Mortality Derived from CalPERS 2000-2019
Experience Study
The actuarial assumptions used in the June 30, 2023, 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, 2024, 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, 2025
(73)
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, 2023
(Measurement Date) $ 25,650,083 $ 7,225,312 $ 18,424,771 Changes in the Year:

Service Cost 467,212 - 467,212
Interest on the Total
OPEB Liability 1,593,505 - 1,593,505
Differences Between Actual
and Expected Experience - - -
Changes in Assumptions - - -
Changes in Benefit Terms - - -
Contribution - Employer - 1,762,974 (1,762,974)
Net Investment Income - 841,426 (841,426)
Administrative Expenses - (6,048) 6,048
Benefit Payments (1,242,433) (1,242,433) -
Net Changes 818,284 1,355,919 (537,635)
Balance at June 30, 2024
(Measurement Date) $ 26,468,367 $ 8,581,231 $ 17,887,136 Increase (Decrease)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(74)
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 $ 21,118,819 $ 17,887,136 $ 15,185,330 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 (7.50% Non-Medicare/6.50% Medicare (Non-Kaiser)/5.25 Medicare (Kaiser) decreasing to 2.45%) or one percentage point higher (9.5% Non-Medicare/8.5% Medicare (Non-Kaiser)/7.25% Medicare (Kaiser) decreasing to

4.45%) than the current healthcare cost trend rates:

Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability $ 14,714,112 $ 17,887,136 $ 21,739,424 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2025, the City recognized OPEB expense of $532,697. At June 30, 2025, 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 $ 2,121,884 $ - Differences Between Actual and Expected Experience - (2,181,593) Change in Assumptions 1,180,326 (281,213)
Net Differences Between Projected and Actual Earnings
on Plan Investments 88,690 -
Total $ 3,390,900 $ (2,462,806)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(75)
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (Continued)
An amount of $2,121,884 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, 2026. 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
2026 (726,879) $
2027 (444,409)
2028 (348,598)
2029 162,131
2030 163,965
Thereafter -
Payable to the OPEB Plan
At June 30, 2025, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2025.

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, 2025
(76)
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, 2025, $1,054,000 has been accrued for general liability claims and $1,103,000 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, 2025, 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, 2025 and 2024, are as follows:

Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Fiscal Year Liability Estimates Payments Liability
2023-2024 $ 2,190,000 $ 2,087,946 $ (770,946) $ 3,507,000 2024-2025 3,507,000 222,445 (1,572,445) 2,157,000

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(77)
NOTE 12 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2025, are tabulated below, followed by explanations as to the nature and purpose of each classification.

Housing 2018 Other Total
Agency County State Capital Series A Govt. Govt.

General Section 8 Grants Grants Improvement COP Funds Funds Other Continuing Appropriations:

Long-Term Receivables/Advances $ 23,328,168 $ - $ - $ - $ - $ - $ - $ 23,328,168 Inventories 3,825 - - - - - - 3,825
Prepaid Items 133,732 - - - - - - 133,732
Restricted for:

Housing Agency - 914,274 - - - - - 914,274
State Gas Tax - - - - - - 4,654,379 4,654,379
HOME - - - - - - 3,117,456 3,117,456
CalHome Grant - - - - - - 705,599 705,599
Lighting Assessment District - - - - - - 4,129,904 4,129,904 Park Development - - - - - - 555,557 555,557
Prop A - - - - - - 4,439,153 4,439,153
Prop C - - - - - - 1,665,630 1,665,630
Measure R - - - - - - 2,711,154 2,711,154
Measure M - - - - - - 625,810 625,810
AQMD - - - - - - 334,308 334,308
County Grants - - 8,644 - - - - 8,644
Economic Development
Assistance Grant - - - - - - 883,251 883,251
Image Enhancement - - - - - - 1,705,298 1,705,298
Reach Grants - - - - - - 978,701 978,701
Cable/PEG Support - - - - - - 358,307 358,307
Housing Agency LMIHF - - - - - - 1,448,493 1,448,493
Measure W - - - - - - 1,101,154 1,101,154
Maintenance District - - - - - - 103,580 103,580
CASp Service 65,878 - - - - - - 65,878
Pension Contribution 2,245,835 - - - - - - 2,245,835
Capital Improvements - - - - - 1,398,999 - 1,398,999
Committed to:

Emergency Reserve/
Economic Stabilization/
Stimulus 30,868,540 - - - - - - 30,868,540
Assigned to:

OPEB Unfunded Liability 894,360 - - - - - - 894,360
Leave Liability 745,870 - - - - - - 745,870
Equipment Replacement 537,690 - - - - - - 537,690
Self-insured Retention 500,000 - - - - - - 500,000
Claim Liability Carrover 54,732 - - - - - - 54,732
Water Enterprise 2,452,772 - - - - - - 2,452,772
Bond Refinancing/Reserve 1,000,000 - - - - - - 1,000,000 Capital improvements 2,000,000 - - - 21,632,579 - - 23,632,579 Deferred Maintenance 1,000,000 - - - - - - 1,000,000
Community Benefit Fund 210,000 - - - - - - 210,000
ICE Legal Aid Fund 25,000 - - - - - - 25,000
Energy Efficiency 1,000,000 - - - - - - 1,000,000
Economic Sustainability 1,000,000 - - - - - - 1,000,000 Purchase Agreements 1,914,223 - - - - - - 1,914,223
Other Continuing Appropriations 12,711,863 - - - - - - 12,711,863 Unassigned 3,705,970 - - (1,196,139) - - (285,959) 2,223,872 Total Fund
Balances (Deficit) $ 86,398,458 $ 914,274 $ 8,644 $ (1,196,139) $ 21,632,579 $ 1,398,999 $ 29,231,775 $ 138,388,590 Projects Funds
Capital
Revenue Funds
Special
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, 2025
(78)
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, 2025, this commitment is equal to $30,868,540.

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, 2025
(79)
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
 Community Benefit Fund
 ICE Legal Aid Fund
 Energy Efficiency
 Economic Sustainability
 Purchase Agreements
 Other Continuing Appropriations
For the fiscal year ended June 30, 2025, the total General Fund assignments equal $26,046,510.

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, 2025, the General Fund unassigned fund balance is $3,705,970.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(80)
NOTE 13 OTHER REQUIRED DISCLOSURES
Deficit Fund Balances or Net Position
The following funds reported deficit fund balances or net position at June 30, 2025:

Major Funds:

State Grants Special Revenue Fund 1,196,139 $
Other Governmental Funds:

Community Development Block Grant Special
Revenue Fund 55,329
Transportation Development Act Special Revenue Fund 72,552 Federal Grants Special Revenue Fund 158,078
Major Enterprise Fund - Golf Course Fund 4,656,570
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 $ 6,103,266 $ 7,114,818 $ (1,011,552) Other Governmental Funds:

Economic Sustainability
Special Revenue Fund 129,449 177,315 (47,866)

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(81)
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, 2025, totaled $792,086.

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, 2025, the total payments made by PRIME under the take or pay contracts was $16,401,063. At June 30, 2025, the remaining take or pay contracts for PRIME is $125,367,088 through December 2045.

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, 2025
(82)
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, 2024 Additions Deletions June 30, 2025
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 (141,944) (3,238) 145,182 - Furniture and Equipment (5,110) - 5,110 -
Infrastructure (23,383) (1,130) 24,513 -
Total Accumulated
Depreciation (170,437) (4,368) 174,805 -
Total Capital Assets,
Being Depreciated, Net 47,525 (4,368) (43,157) -
Successor Agency Activities,
Capital Assets, Net $ 305,548 $ (4,368) $ (301,180) $ - 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, 2025, is $301,767.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(83)
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, 2025, the net advance balance was $18,820,098, which included accrued interest of $9,657,528 and a 25% reserve against this balance totaling $4,705,025 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, 2025, the balance of the City Deferrals including interest was $31,866,128.

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 $31,866,128 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, 2025
(84)
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.

The City Council approved the loan cancellation in May 2025, which resulted in the elimination of the outstanding payable.

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, 2025, the net advance balance was $268,662, which includes accrued interest of $138,662 and a 25% reserve against this balance totaling $67,166 due to the estimated collectability by the Water A as a result of the winding down of the affairs of the former Redevelopment Agency.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(85)
NOTE 15 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
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
2026 $ 2,635,000 $ 19,895 $ 2,654,895
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, 2025, the balance of the County Deferral including interest was $39,511,903. There is no fixed payment schedule for the repayment of the County Deferral.

Additionally, at June 30, 2025, the Successor Agency also has a payable to the County of Los Angeles for the gross proceeds received on the sale of land totaling $168,209.

The City is in the process of finalizing the dissolution of the Successor Agency as of June 30, 2025. As of that date, the payable to the Pico Rivera Housing Assistance Agency has been eliminated, and the Tax Allocation Refunding Bonds were fully retired in early July 2025. Pursuant to Health and Safety Code (HSC) Section 34187(b), when all enforceable obligations have been retired or paid off, all real property has been disposed of, and all outstanding litigation has been resolved, the Successor Agency can request to formally dissolve the Successor Agency. Upon completion of the dissolution, all remaining balances, including loans receivable and amounts due to the City of Pico Rivera, the Pico Rivera Water Authority, and the County of Los Angeles, will be fully reconciled, resulting in no outstanding obligations. Additional information is presented in Note 16.

CITY OF PICO RIVERA, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(86)
NOTE 16 SUBSEQUENT EVENTS
On August 19, 2025, the Los Angeles County Oversight Board (LACOB) approved the City’s request to dissolve the Successor Agency to the former Redevelopment Agency. The California Department of Finance (DOF) subsequently approved the dissolution on September 17, 2025, in accordance with Section 34187 of the California Health and Safety Code.

The dissolution will result in the full termination of the Successor Agency’s fiduciary activities and the elimination of the Private Purpose Trust Fund in FY 2025–26. Upon dissolution, the remaining assets, approximately $3 million, of the Successor Agency will be remitted to the Los Angeles County Auditor-Controller’s Office, thereby completing the wind-down process in FY 2025-26. As part of this action, outstanding loan balances of approximately $50.95 million owed to the City and $39.51 million owed to the County will be forfeited.

In conjunction with the dissolution, the $14.11 million in receivables from the Successor Agency within the General Fund will likely be uncollectible. As such, the City will eliminate the $14.11 million from the Receivables category, as well as the $7.24 million in related unavailable revenue, resulting in a net loss of $6.87 million, which will be reported as a special item at the time of dissolution. Because the City has maintained a reserve for this amount since the Successor Agency’s inception, the Nonspendable Fund Balance will decrease by the same amount, with no impact on the General Fund’s unassigned fund balance. Additionally, the Water Fund will recognize a one-time special item revenue of approximately $67,000, resulting in a corresponding increase in its net position.

REQUIRED SUPPLEMENTARY INFORMATION

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. (87)
2025 2024 2023 2022 2021
Measurement Period: June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 Total Pension Liability:

Service Cost 2,263,817 $ 1,994,117 $ 1,902,845 $ 1,825,934 $ 1,776,130 $ Interest on Total Pension Liability 9,347,412 8,789,337 8,484,446 8,390,682 8,115,666 Differences Between Expected
and Actual Experience 4,042,290 464,821 (2,724,330) (227,395) (96,456) Changes in Assumptions - - 4,188,315 - -
Benefit Payments, Including Refunds of
Employee Contributions (7,064,954) (6,680,125) (6,277,953) (5,938,611) (5,747,216) Net Change in Total Pension Liability 8,588,565 4,568,150 5,573,323 4,050,610 4,048,124 Total Pension Liability - Beginning of Year 129,259,869 133,828,019 123,686,546 119,635,936 115,587,812 Total Pension Liability - End of Year (a) 142,416,584 $ 133,828,019 $ 129,259,869 $ 123,686,546 $ 119,635,936 $ Plan Fiduciary Net Position:

Plan-to-Plan Resource Movement $ - $ - $ - $ - $ -
Contributions - Employer 4,535,344 4,536,987 4,024,396 3,785,703 3,510,945 Contributions - Employee 1,057,253 943,383 758,203 773,207 824,722 Net Investment Income 8,694,013 5,374,302 (7,209,341) 17,874,219 3,795,360 Administrative Expenses (73,753) (63,628) (59,361) (78,792) (107,987) Benefit Payments (7,064,954) (6,680,125) (6,277,953) (5,938,611) (5,747,216) Net Change in Plan Fiduciary Net Position 7,147,903 4,110,919 (8,764,056) 16,415,726 2,275,824 Plan Fiduciary Net Position - Beginning of Year 90,638,230 86,527,311 95,291,367 78,875,641 76,599,817 Plan Fiduciary Net Position - End of Year (b) $ 97,786,133 $ 90,638,230 $ 86,527,311 $ 95,291,367 $ 78,875,641 Net Pension Liability - Ending (a)-(b) $ 44,630,451 $ 43,189,789 $ 42,732,558 $ 28,395,179 $ 40,760,295 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 68.66% 67.73% 66.94% 77.04% 65.93% Covered Payroll $ 15,182,721 $ 14,458,762 $ 12,290,342 $ 11,613,022 $ 10,774,630 Net Pension Liability as Percentage of
Covered Payroll 293.96% 298.71% 347.69% 244.51% 378.30%

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%
From Fiscal Year June 30, 2023 to June 30, 2024:

There were no changes in assumptions.

From Fiscal Year June 30, 2024 to June 30, 2025:

There were no changes in assumptions.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

MISCELLANEOUS PLAN (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (88)
2020 2019 2018 2017 2016
Measurement Period: June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Total Pension Liability:

Service Cost 1,749,749 $ 1,668,403 $ 1,660,852 $ 1,410,606 $ 1,411,834 $ Interest on Total Pension Liability 7,844,359 7,428,615 7,124,315 6,980,849 6,826,754 Differences Between Expected
and Actual Experience 2,207,380 1,411,957 (1,258,219) (1,495,731) (845,358) Changes in Assumptions - (828,380) 5,943,062 - (1,681,626) Benefit Payments, Including Refunds of
Employee Contributions (5,685,436) (5,375,555) (4,857,602) (4,769,549) (4,686,299) Net Change in Total Pension Liability 6,116,052 4,305,040 8,612,408 2,126,175 1,025,305 Total Pension Liability - Beginning of Year 105,166,720 109,471,760 96,554,312 94,428,137 93,402,832 Total Pension Liability - End of Year (a) 115,587,812 $ 109,471,760 $ 105,166,720 $ 96,554,312 $ 94,428,137 $ Plan Fiduciary Net Position:

Plan-to-Plan Resource Movement $ - $ (171) $ - $ - $ 12 Contributions - Employer 3,152,902 2,902,032 2,552,475 2,352,483 2,240,763 Contributions - Employee 817,187 838,924 741,941 681,785 716,687 Net Investment Income 4,813,665 5,870,873 7,274,632 328,225 1,459,065 Administrative Expenses (52,319) (314,561) (94,514) (39,896) (73,643) Benefit Payments (5,685,436) (5,375,555) (4,857,602) (4,769,549) (4,686,299) Net Change in Plan Fiduciary Net Position 3,045,999 3,921,542 5,616,932 (1,446,952) (343,415) Plan Fiduciary Net Position - Beginning of Year 73,553,818 69,632,276 64,015,344 65,462,296 65,805,711 Plan Fiduciary Net Position - End of Year (b) $ 76,599,817 $ 73,553,818 $ 69,632,276 $ 64,015,344 $ 65,462,296 Net Pension Liability - Ending (a)-(b) $ 38,987,995 $ 35,917,942 $ 35,534,444 $ 32,538,968 $ 28,965,841 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 66.27% 67.19% 66.21% 66.30% 69.32% Covered Payroll $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 $ 8,675,393 Net Pension Liability as Percentage of
Covered Payroll 361.85% 360.66% 369.95% 369.01% 333.89%

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%
From Fiscal Year June 30, 2023 to June 30, 2024:

There were no changes in assumptions.

From Fiscal Year June 30, 2024 to June 30, 2025:

There were no changes in assumptions.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS

MISCELLANEOUS PLAN

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (89)
2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 5,132,724 $ 4,666,971 $ 4,587,084 $ 4,115,660 $ 3,510,945 Contributions in Relation to the Actuarially
Determined Contributions (5,132,724) (4,666,971) (4,587,084) (4,115,660) (3,510,945) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 15,988,764 $ 15,182,721 $ 14,458,762 $ 12,290,342 $ 11,613,022 Contributions as a Percentage of
Covered Payroll 32.10% 30.74% 31.73% 33.49% 30.23%
Notes to Schedule:

Valuation Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 6.90% (3) 6.90% (3) 7.10% (3) 7.375% (3) 7.375% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (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.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS

MISCELLANEOUS PLAN (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (90)
2020 2019 2018 2017 2016
Actuarially Determined Contribution $ 3,511,156 $ 3,152,687 $ 2,902,032 $ 2,552,475 $ 2,352,483 Contributions in Relation to the Actuarially
Determined Contributions (3,511,156) (3,152,687) (2,902,032) (2,552,475) (2,352,483) Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 11,103,243 $ 10,774,630 $ 9,958,832 $ 9,605,299 $ 8,817,942 Contributions as a Percentage of
Covered Payroll 31.62% 29.26% 29.14% 26.57% 26.68%
Notes to Schedule:

Valuation Date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used to
Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.75% 2.50% 2.75% 2.75% 2.75%
Salary Increases (2) (2) (2) (2) (2)
Investment Rate of Return 7.375% (3) 7.15% (3) 7.375% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4)
Mortality (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.

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. (91)
2025 2024 2023 2022 2021
Measurement Period: June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Total Pension Liability:

Service Cost 785 $ $ 785 $ 748 $ 748 $ 2,351
Interest on Total Pension Liability 13,992 14,108 14,076 14,044 12,821 Differences Between Expected
and Actual Experience - - - - -
Changes in Economic/Demographic - (1,648) - - 22,057
Changes in Assumptions - (652) - - (2,461)
Benefit Payments, Including Refunds of
Employee Contributions (14,373) (14,373) (14,372) (14,214) (14,492) Net Change in Total Pension Liability 404 (1,780) 452 578 20,276 Total Pension Liability - Beginning of Year 221,559 223,339 222,887 222,309 202,033 Total Pension Liability - End of Year (a) 221 221,963 223 ,559 222 ,339 222 ,887 ,309 Plan Fiduciary Net Position:

Contributions - Employer 3,591 3,591 3,591 3,591 7,183
Contributions - Employee - - - - -
Net Investment Income 16,693 19,641 13,057 (26,881) 42,720 Administrative Expenses (867) (821) (803) (959) (925)
Benefit Payments (14,373) (14,373) (14,372) (14,214) (14,492) Net Change in Plan Fiduciary Net Position 5,044 8,038 1,473 (38,463) 34,486 Plan Fiduciary Net Position - Beginning of Year 170,735 162,697 161,224 199,687 165,201 Plan Fiduciary Net Position - End of Year (b) 170,735 175,779 162,697 161,224 199,687 Net Pension Liability - Ending (a)-(b) $ 50 46,184 $ 60 ,824 $ 61 ,642 $ 22 ,663 $ ,622 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 79.19% 77.06% 72.85% 72.33% 89.82% Covered Payroll $ 10,655 $ 10,655 $ 10,655 $ 10,655 $ 9,865 Net Pension Liability as Percentage of
Covered Payroll 433.45% 477.00% 569.14% 578.72% 229.32%

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.

During June 30, 2024, the inflation rate changed from 2.5% to 2.3%.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS

COUNCIL PLAN (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (92)
2020 2019 2018 2017 2016
Measurement Period: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Total Pension Liability:

Service Cost 2,283 $ $ 6,794 $ 6,533 $ 6,809 $ 6,547
Interest on Total Pension Liability 11,252 11,243 11,848 11,642 11,117 Differences Between Expected
and Actual Experience - - - - (9,032)
Changes in Economic/Demographic 22,367 - (16,557) - -
Changes in Assumptions 2,623 - - 8,226 7,389
Benefit Payments, Including Refunds of
Employee Contributions (14,412) (12,399) (10,426) (10,426) (10,426) Net Change in Total Pension Liability 24,113 5,638 (8,602) 16,251 5,595 Total Pension Liability - Beginning of Year 177,920 172,282 180,884 164,633 159,038 Total Pension Liability - End of Year (a) 177 202,033 172 ,920 180 ,282 164 ,884 ,633 Plan Fiduciary Net Position:

Contributions - Employer 10,774 14,227 18,648 17,266 18,647 Contributions - Employee - - - - -
Net Investment Income 3,916 9,833 10,214 13,784 83
Administrative Expenses (834) (808) (762) (655) (575)
Benefit Payments (14,412) (12,399) (10,426) (10,426) (10,426) Net Change in Plan Fiduciary Net Position (556) 10,853 17,674 19,969 7,729 Plan Fiduciary Net Position - Beginning of Year 165,757 154,904 137,230 117,261 109,532 Plan Fiduciary Net Position - End of Year (b) 165,757 165,201 154,904 137,230 117,261 Net Pension Liability - Ending (a)-(b) $ 12 36,832 $ 17 ,163 $ 43 ,378 $ 47 ,654 $ ,372 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 81.77% 93.16% 89.91% 75.87% 71.23% Covered Payroll $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 Net Pension Liability as Percentage of
Covered Payroll 111.87% 30.82% 31.36% 75.76% 85.50%

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.

During June 30, 2024, the inflation rate changed from 2.5% to 2.3%.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS

COUNCIL PLAN

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (93)
2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 6,648 $ 2,937 $ 7,715 $ 7,715 $ 7,715 Contributions in Relation to the
Actuarially Determined Contributions (3,591) (3,591) (3,591) (3,591) (7,183) Contribution Deficiency (Excess) $ 3,057 $ (654) $ 4,124 $ 4,124 $ 532 Covered Payroll $ 21,843 $ 10,655 $ 10,655 $ 10,655 $ 9,865 Contributions as a Percentage of
Covered Payroll 16.44% 33.70% 33.70% 33.70% 72.81%
Notes to Schedule:

Valuation Date 6/30/2023 6/30/2023 6/30/2022 6/30/2021 6/30/2019 Methods and Assumptions Used to
Determine Contribution Rates:

Single Employer Plan Entry Age Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal Normal
Amortization Method Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, 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 3-Year Fixed Asset Valuation Method Market Market Market Market Market Inflation 2.30% 2.30% 2.50% 2.50% 2.50%
Salary Increases 0.00% 0.00% 0.00% 0.00% 3.00%
Investment Rate of Return 6.50% 6.50% 6.50% 6.50% 6.50% Retirement Age 55 Years 55 Years 55 Years 55 Years 55 Years Mortality (2) (2) (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.
(2) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

CITY OF PICO RIVERA, CALIFORNIA

SCHEDULE OF CONTRIBUTIONS

COUNCIL PLAN (CONTINUED)

LAST TEN FISCAL YEARS
See accompanying Note to Required Supplementary Information. (94)
2020 2019 2018 2017 2016
Actuarially Determined Contribution $ 9,938 $ 17,226 $ 17,900 $ 18,616 $ 17,266 Contributions in Relation to the
Actuarially Determined Contributions (10,774) (14,227) (18,648) (17,266) (18,647) Contribution Deficiency (Excess) $ (836) $ 2,999 $ (748) $ 1,350 $ (1,381) Covered Payroll $ 32,924 $ 39,460 $ 55,406 $ 57,622 $ 55,406 Contributions as a Percentage of
Covered Payroll 32.72% 36.05% 33.66% 29.96% 33.66%
Notes to Schedule:

Valuation Date 6/30/2019 6/30/2017 6/30/2017 7/1/2015 7/1/2015 Methods and Assumptions Used to
Determine Contribution Rates:

Single Employer Plan Entry Age Entry Age Entry Age Entry Age Entry Age Normal Normal Normal Normal Normal
Amortization Method Level Dollar, Level Dollar, Level Dollar, Level Dollar, Level Dollar, Closed Period Closed Period Closed Period Closed Period Closed Period Remaining Amortization Period 3-Year Fixed 5-Year Fixed 5-Year Fixed 7-Year Fixed 7-Year Fixed Asset Valuation Method Market Market Market Market Market Inflation 2.50% 2.75% 2.75% 2.75% 2.75%
Salary Increases 3.00% 4.00% 4.00% 4.00% 4.00%
Investment Rate of Return 6.50% 6.50% 6.50% 6.50% 7.00% Retirement Age 55 Years 55 Years 55 Years 55 Years 55 Years Mortality (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.
(2) Pre-Retirement: Consistent with the nonindustrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021.

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. (95)
Fiscal Year-End 2025 2024 2023 2022 2021 2020 2019 2018 Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability:

Service Cost $ 467,212 $ 458,013 $ 445,755 $ 568,492 $ 585,937 $ 605,152 $ 614,912 $ 597,000 Interest on Total OPEB Liability 1,593,505 1,452,067 1,410,651 1,832,841 1,790,952 1,873,005 1,792,862 1,717,000 Differences Between Expected and
Actual Experience - (113,234) (5,246,807) - - (2,149,380) - - Changes in Assumptions - 1,682,592 (412,400) - (495,461) (269,581) - - Benefit Payments (1,242,433) (1,208,807) (1,203,248) (1,201,078) (1,285,726) (1,225,426) (1,196,000) (1,212,000) Net Change in Total OPEB Liability 818,284 2,270,631 653,158 (4,458,952) 595,702 (1,166,230) 1,211,774 1,102,000 Total OPEB Liability - Beginning of Year 25,650,083 23,379,452 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) 26,468,367 25,650,083 23,379,452 22,726,294 27,185,246 26,589,544 27,755,774 26,544,000 Plan Fiduciary Net Position:

Contributions - Employer 1,762,974 1,777,258 2,159,703 1,203,599 1,288,526 1,227,833 1,199,000 5,212,000 Net Investment Income 841,426 404,126 (978,822) 1,356,239 168,441 277,177 331,815 165,000 Administrative Expenses (6,048) (5,410) (4,268) (4,388) (5,129) (3,369) (10,734) (1,000) Benefit Payments (1,242,433) (1,208,807) (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 1,355,919 967,167 (26,635) 1,354,372 166,112 276,215 324,081 4,164,000 Plan Fiduciary Net Position - Beginning of Year 7,225,312 6,258,145 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 - Plan Fiduciary Net Position - End of Year (b) 8,581,231 7,225,312 6,258,145 6,284,780 4,930,408 4,764,296 4,488,081 4,164,000 Net OPEB Liability - Ending (a)-(b) $ 17,887,136 $ 18,424,771 $ 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 32.42% 28.17% 26.77% 27.65% 18.14% 17.92% 16.17% 15.69% Covered Payroll $ 15,182,721 $ 14,315,004 $ 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 Payroll 117.81% 128.71% 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.

From fiscal year June 30, 2023 to June 30, 2024:

Medical trend rate decreased for Non-Medicare and Medicare. * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown.

CITY OF PICO RIVERA, CALIFORNIA
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN
LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (96)
2025 2024 2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution $ 2,056,000 $ 1,776,000 $ 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 (2,121,884) (1,762,974) (1,777,258) (2,159,703) (1,203,599) (1,288,526) (1,227,833) (1,199,000) Contribution Deficiency (Excess) $ (65,884) $ 13,026 $ (11,258) $ 975,297 $ 1,861,401 $ 1,501,474 $ 1,511,167 $ 1,489,000 Covered Payroll $ 15,988,764 $ 15,182,721 $ 14,315,004 $ 12,284,836 $ 12,992,596 $ 12,474,643 $ 12,334,638 $ 10,314,000 Contributions as a Percentage of
Covered Payroll 13.27% 11.61% 12.42% 17.58% 9.26% 10.33% 9.95% 11.62% Notes to Schedule:

Valuation Date 6/30/2023 6/30/2023 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 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Medical Trend
Medicare (Non-Kaiser)- 7.50%
Investment Rate of Return 6.25% 6.25% 6.25% 6.25% 6.75% 6.75% 6.75% 6.75% Mortality
* Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown.

Decreasing to 4.0%
CalPERS 1997-2015 CalPERS 1997-2015
Medicare - 6.3%
Decreasing to 4.0%
Medicare - 6.3%
Decreasing to 4.0% Decreasing to 4.0%
Decreasing to 3.75%
Medicare (Non-Kaiser) - 5.65%
Non-Medicare - 6.5% Non-Medicare - 7.25% Non-Medicare - 7.25% Entry Age
Level Percentage of Payroll, Closed
Investment Gains and Losses Spread Over 5-Year Rolling Period Experience Study
Non-Medicare- 8.5%
Decreasing to 3.45%
Decreasing to 3.45%
Medicare (Kaiser)- 6.25% Medicare (Kaiser) - 4.6%
Decreasing to 3.45%
CalPERS 2000-2019
Experience Study Experience Study
Decreasing to 4.0% Decreasing to 4.0%

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (97)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Taxes and Assessments 46,237,333 $ 46,237,333 $ 47,303,229 $ 1,065,896 $ Licenses and Permits 7,093,027 7,093,027 7,459,364 366,337 Intergovernmental 571,200 571,200 294,728 (276,472)
Charges for Services 1,556,463 1,556,463 1,691,781 135,318 Fines, Forfeitures, and Penalties 1,410,000 1,410,000 1,170,079 (239,921) Investment and Rental 2,153,933 2,153,933 3,158,099 1,004,166 Miscellaneous 334,359 955,661 2,583,808 1,628,147
Total Revenues 59,356,315 59,977,617 63,661,088 3,683,471

EXPENDITURES
Current:

General Government 12,545,768 15,017,531 15,484,213 (466,682) Public Safety 14,797,684 16,016,746 14,507,237 1,509,509 Public Works 11,353,609 11,675,080 10,933,008 742,072
Parks and Recreation 7,840,854 7,949,079 7,137,206 811,873 Community Development 6,668,454 8,334,967 6,191,183 2,143,784 Debt Service:

Principal 1,065,000 1,065,000 1,065,000 -
Interest and Fiscal Charges 860,550 860,550 860,550 -
Lease Principal - - 45,309 (45,309)
Lease Interest - - 3,268 (3,268)
Total Expenditures 55,131,919 60,918,953 56,226,974 4,691,979

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,224,396 (941,336) 7,434,114 8,375,450

OTHER FINANCING SOURCES (USES)
Transfers In 1,746,124 1,746,124 1,723,969 (22,155)
Transfers Out (5,723,500) (7,553,137) (7,724,637) (171,500) Loss on Sale of Capital Assets - - 26,100 26,100
Total Other Financing
Sources (Uses) (3,977,376) (5,807,013) (5,974,568) (167,555) NET CHANGE IN FUND BALANCE 247,020 (6,748,349) 1,459,546 8,207,895 Fund Balance - Beginning of Year 84,938,912 84,938,912 84,938,912 - FUND BALANCE - END OF YEAR $ 85,185,932 $ 78,190,563 $ 86,398,458 $ 8,207,895 Budgeted Amounts

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE
HOUSING AGENCY SECTION 8 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (98)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental 6,051,369 $ 6,051,369 $ 7,132,854 $ 1,081,485 $ Investment and Rental - - 500 500
Miscellaneous 29,000 29,000 38,204 9,204
Total Revenues 6,080,369 6,080,369 7,171,558 1,091,189

EXPENDITURES
Current:

Health and Welfare 6,103,266 6,103,266 7,114,818 (1,011,552) NET CHANGE IN FUND BALANCE (22,897) (22,897) 56,740 79,637 Fund Balance - Beginning of Year 857,534 857,534 857,534 - FUND BALANCE - END OF YEAR $ 834,637 $ 834,637 $ 914,274 $ 79,637 Budgeted Amounts

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

AMERICAN RESCUE PLAN SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (99)
Variance with
Final Budget
Positive
Original Final Actual (Negative)

REVENUES
Intergovernmental - $ $ - $ 2,396,080 $ 2,396,080
Total Revenues - 2,396,080 - 2,396,080

EXPENDITURES
Current:

Public Works - 2,396,080 2,396,080 -
Total Expenditures - 2,396,080 2,396,080 -
NET CHANGE IN FUND BALANCE - (2,396,080) - 2,396,080
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - $ (2,396,080) $ - $ 2,396,080 Budgeted Amounts

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

COUNTY GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (100)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 7,915,555 $ 237,510 $ (7,678,045) $
Total Revenues 7,915,555 237,510 (7,678,045)

EXPENDITURES
Current:

Parks and Recreation 201,551 94,502 107,049
Capital Outlay 196,329 1 196,328
Total Expenditures 397,880 290,830 107,050
NET CHANGE IN FUND BALANCE (53,320) 7,517,675 (7,570,995) Fund Balance - Beginning of Year 61,964 61,964 -
FUND BALANCE - END OF YEAR $ 7,579,639 $ 8,644 $ (7,570,995)

CITY OF PICO RIVERA, CALIFORNIA

BUDGETARY COMPARISON SCHEDULE

STATE GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2025
See accompanying Note to Required Supplementary Information. (101)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 33,441,372 $ 14,148,623 $ (19,292,749) $ Investment and Rental 1,880 (42,265) (44,145)
Total Revenues 33,443,252 14,106,358 (19,336,894)

EXPENDITURES
Current:

Health and Welfare 1,331,647 332,448 999,199
Capital Outlay 10,459,835 10,222,691 237,144
Total Expenditures 11,791,482 10,555,139 1,236,343
NET CHANGE IN FUND BALANCE 32,111,605 3,551,219 28,560,386 Fund Balance (Deficit) - Beginning of Year (4,747,358) (4,747,358) - FUND BALANCE (DEFICIT) - END OF YEAR $ 27,364,247 $ (1,196,139) $ (28,560,386)

CITY OF PICO RIVERA, CALIFORNIA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2025
(102)
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; 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; and the Measure A special revenue fund which accounts for Measure A activities. 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.

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SUPPLEMENTARY INFORMATION

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS
JUNE 30, 2025
(103)

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.

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.

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.

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF OTHER GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2025
(104)

SPECIAL REVENUE FUNDS (CONTINUED)
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:

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.

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2025
(105)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development
ASSETS
Cash and Investments $ - $ 4,210,208 $ 4,214,775 $ 104,712 Restricted Cash and Investments
Accounts Receivable 292,182 - - 450,000
Taxes Receivable - 445,561 40,829 -
Interest Receivable - 34,186 34,536 845
Long-Term Receivables 176,409 - - -
Total Assets $ 468,591 $ 4,689,955 $ 4,290,140 $ 555,557

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 254,317 $ - $ 146,000 $ -
Accrued Liabilities 968 5,576 14,236 -
Retention Payable 8,320 30,000 - -
Due to Other Funds 48,836 - - -
Due to Other Agencies 176,410 - - -
Total Liabilities 488,851 35,576 160,236 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 35,069 - - -

FUND BALANCES (DEFICITS)
Restricted - 4,654,379 4,129,904 555,557
Unassigned (55,329) - - -
Total Fund Balances (Deficits) (55,329) 4,654,379 4,129,904 555,557 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 468,591 $ 4,689,955 $ 4,290,140 $ 555,557 Special Revenue Funds

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2025
(106)
Prop Prop Measure Measure HOME CalHOME
A C R M Grant Grant
$ 4,561,817 $ 1,879,217 $ 2,974,816 $ 758,663 $ 3,098,209 $ 705,599 - 33,494 685,921 271,010 - -
- - - - - -
37,392 14,873 24,441 7,698 19,247 -
- - - - 2,449,414 1,101,034
$ 4,599,209 $ 1,927,584 $ 3,685,178 $ 1,037,371 $ 5,566,870 $ 1,806,633 $ 146,854 $ 131,761 $ 210,813 $ 19,392 $ - $ -
452 6,256 1,496 2,167 - -
12,750 91,927 75,794 118,992 - -
- - - - - -
- - - - 2,449,414 1,101,034
160,056 229,944 288,103 140,551 2,449,414 1,101,034
- 32,010 685,921 271,010 - -
4,439,153 1,665,630 2,711,154 625,810 3,117,456 705,599 - - - - - -
4,439,153 1,665,630 2,711,154 625,810 3,117,456 705,599 $ 4,599,209 $ 1,927,584 $ 3,685,178 $ 1,037,371 $ 5,566,870 $ 1,806,633 Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2025
(107)
Air
Quality Economic Image Reach
Improvement Sustainability Enhancement Grants
ASSETS
Cash and Investments $ 393,136 $ 877,539 $ 1,691,752 $ 998,915 Restricted Cash and Investments
Accounts Receivable - - - -
Taxes Receivable - - - -
Interest Receivable 3,064 7,083 13,546 9,267
Long-Term Receivables - - - -
Total Assets $ 396,200 $ 884,622 $ 1,705,298 $ 1,008,182

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 54,868 $ 1,371 $ - $ 18,802
Accrued Liabilities - - - 10,679
Retention Payable 7,024 - - -
Due to Other Funds - - - -
Due to Other Agencies - - - -
Total Liabilities 61,892 1,371 - 29,481

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -

FUND BALANCES (DEFICITS)
Restricted 334,308 883,251 1,705,298 978,701
Unassigned - - - -
Total Fund Balances (Deficits) 334,308 883,251 1,705,298 978,701 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 396,200 $ 884,622 $ 1,705,298 $ 1,008,182 Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2025
(108)
Total
Transportation Housing Special
Cable/PEG Development Agency Measure Federal Revenue
Support Act LMIHF W Grants Funds
$ 346,069 $ - $ 1,437,738 $ 1,381,113 $ - $ 29,634,278
- 66,508 - - 244,669 2,043,784
12,238 - - - - 498,628
- - 10,755 11,973 - 228,906
- - - - - 3,726,857
$ 358,307 $ 66,508 $ 1,448,493 $ 1,393,086 $ 244,669 $ 36,132,453 $ - $ 61,825 $ - $ 193,961 $ 69,519 1,309,483
- 1,485 - 285 - 43,600
- 2,522 - 97,686 - 445,015
- 6,722 - - 88,559 144,117
- - - - - 3,726,858
- 72,554 - 291,932 158,078 5,669,073
- 66,506 - - 244,669 1,335,185
358,307 - 1,448,493 1,101,154 - 29,414,154
- (72,552) - - (158,078) (285,959)
358,307 (72,552) 1,448,493 1,101,154 (158,078) 29,128,195 $ 358,307 $ 66,508 $ 1,448,493 $ 1,393,086 $ 244,669 $ 36,132,453 Special Revenue Funds (Continued)

CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2025
(109)
Capital Projects Fund
Paramount/Mines Total
Landscape Other
Maintenance Governmental
Assessment Funds
ASSETS
Cash and Investments $ 102,756 $ 29,737,034
Restricted Cash and Investments
Accounts Receivable - 2,043,784
Taxes Receivable - 498,628
Interest Receivable 824 229,730
Long-Term Receivables - 3,726,857
Total Assets $ 103,580 $ 36,236,033

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ - 1,309,483
Accrued Liabilities - 43,600
Retention Payable - 445,015
Due to Other Funds - 144,117
Due to Other Agencies - 3,726,858
Total Liabilities - 5,669,073

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 1,335,185

FUND BALANCES (DEFICITS)
Restricted 103,580 29,517,734
Unassigned - (285,959)
Total Fund Balances (Deficits) 103,580 29,231,775
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 103,580 $ 36,236,033
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CITY OF PICO RIVERA, CALIFORNIA

OTHER GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2025
(110)
Community
Development State Lighting
Block Gas Assessment Park
Grant Tax District Development

REVENUES
Taxes and Assessments $ - $ - $ 2,216,656 $ -
Intergovernmental 790,321 3,419,495 - -
Charges for Services - - - 450,001
Investment and Rental - 230,272 224,035 6,548
Miscellaneous - - - -
Total Revenues 790,321 3,649,767 2,440,691 456,549

EXPENDITURES
Current:

General Government - - - -
Public Works - 131,129 1,399,412 -
Parks and Recreation - - - -
Community Development 20,785 - - -
Capital Outlay 539,402 183,762 - -
Total Expenditures 560,187 314,891 1,399,412 -

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 230,134 3,334,876 1,041,279 456,549

OTHER FINANCING SOURCES (USES)
Transfers Out - (1,723,969) - -
Total Other Financing
Sources (Uses) - (1,723,969) - -

SPECIAL ITEM
Forgiveness of Debt - - - -
NET CHANGE IN FUND BALANCES 230,134 1,610,907 1,041,279 456,549 Fund Balances (Deficits) - Beginning of Year (285,463) 3,043,472 3,088,625 99,008 FUND BALANCES (DEFICITS) - END OF YEAR $ (55,329) $ 4,654,379 $ 4,129,904 $ 555,557 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, 2025
(111)
Prop Prop Measure Measure HOME CalHOME
A C R M Grant Grant
$ - $ - $ - $ - $ - $ -
1,599,906 1,330,470 1,318,051 2,620,220 - -
- - - - - -
287,053 149,127 215,435 25,437 193,568 -
12,385 - - - 92,716 -
1,899,344 1,479,597 1,533,486 2,645,657 286,284 -
- - - - - -
1,647,815 206,993 61,089 68,778 - -
- - - - - -
- - - - - -
- 1,987,948 1,745,829 826,049 - -
1,647,815 2,194,941 1,806,918 894,827 - -
251,529 (715,344) (273,432) 1,750,830 286,284 -
- - - (839,169) - -
- - - (839,169) - -
- - - - - -
251,529 (715,344) (273,432) 911,661 286,284 -
4,187,624 2,380,974 2,984,586 (285,851) 2,831,172 705,599 $ 4,439,153 $ 1,665,630 $ 2,711,154 $ 625,810 $ 3,117,456 $ 705,599 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, 2025
(112)
Air
Quality Economic Image Reach
Improvement Sustainability Enhancement Grants

REVENUES
Taxes and Assessments $ - $ - $ - $ 590
Intergovernmental 80,413 - - 1,169,194
Charges for Services - - 229,699 -
Investment and Rental 30,615 106,818 99,762 51,956
Miscellaneous 13,421 - - -
Total Revenues 124,449 106,818 329,461 1,221,740

EXPENDITURES
Current:

General Government - - 49,057 -
Public Works 352,681 - - -
Parks and Recreation - - - 1,157,401
Community Development - 177,315 - -
Capital Outlay - - - -
Total Expenditures 352,681 177,315 49,057 1,157,401

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (70,497) (228,232) 280,404 64,339

OTHER FINANCING SOURCES (USES)
Transfers Out - - - -
Total Other Financing
Sources (Uses) - - - -

SPECIAL ITEM
Forgiveness of Debt - - - -
NET CHANGE IN FUND BALANCES (70,497) (228,232) 280,404 64,339 Fund Balances (Deficits) - Beginning of Year 562,540 953,748 1,424,894 914,362 FUND BALANCES (DEFICITS) - END OF YEAR $ 883,251 334,308 $ 1,705,298 $ 978,701 $ 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, 2025
(113)
Total
Transportation Housing Special
Cable/PEG Development Agency Measure Federal Revenue
Support Act LMIHF W Grants Funds
$ - $ - $ - $ - $ - $ 2,217,246
- 77,523 - 897,022 612,057 13,914,672
- - - - - 679,700
- - (215,703) 116,973 - 1,521,896
52,563 - 18,135 - - 189,220
52,563 77,523 (197,568) 1,013,995 612,057 18,522,734
- - - - - 49,057
14,321 144,254 - 240,799 42,620 4,309,891
- - - - - 1,157,401
- - - - - 198,100
- - - 1,685,184 594,130 7,562,304
14,321 144,254 - 1,925,983 636,750 13,276,753
38,242 (66,731) (197,568) (911,988) (24,693) 5,245,981
- - - - - (2,563,138)
- - - - - (2,563,138)
- - (1,152,183) - - (1,152,183)
38,242 (66,731) (1,349,751) (911,988) (24,693) 1,530,660 320,065 (5,821) 2,798,244 2,013,142 (133,385) 27,597,535 $ 358,307 $ (72,552) $ 1,448,493 $ 1,101,154 $ (158,078) $ 29,128,195 Special Revenue Funds (Continued)

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, 2025
(114)
Capital Projects Fund
Paramount/Mines Total
Landscape Other
Maintenance Governmental
Assessment Funds

REVENUES
Taxes and Assessments $ 12,129 $ 2,229,375
Intergovernmental - 13,914,672
Charges for Services - 679,700
Investment and Rental 5,955 1,527,851
Miscellaneous - 189,220
Total Revenues 18,084 18,540,818

EXPENDITURES
Current:

General Government - 49,057
Public Works - 4,309,891
Parks and Recreation - 1,157,401
Community Development - 198,100
Capital Outlay - 7,562,304
Total Expenditures - 13,276,753

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 18,084 5,264,065

OTHER FINANCING SOURCES (USES)
Transfers Out - (2,563,138)
Total Other Financing
Sources (Uses) - (2,563,138)

SPECIAL ITEM
Forgiveness of Debt - (1,152,183)
NET CHANGE IN FUND BALANCES 18,084 1,548,744
Fund Balances (Deficits) - Beginning of Year 85,496 27,683,031 FUND BALANCES (DEFICITS) - END OF YEAR $ 103,580 $ 29,231,775

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, 2025
(115)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 589,071 $ 790,321 $ 201,250 $
Total Revenues 589,071 790,321 201,250

EXPENDITURES
Capital Outlay 809,605 539,402 270,203
Total Expenditures 809,605 560,187 249,418

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 230,134 (220,534) 450,668
Fund Balance (Deficit) - Beginning of Year (285,463) (285,463) - FUND BALANCE (DEFICIT) - END OF YEAR $ (505,997) $ (55,329) $ (450,668)

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, 2025
(116)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 3,355,781 $ 3,419,495 $ 63,714 $
Investment and Rental - 230,272 230,272
Total Revenues 3,355,781 3,649,767 293,986

EXPENDITURES
Current:

Public Works 214,358 131,129 83,229
Capital Outlay: 295,470 111,708 183,762
Total Expenditures 509,828 314,891 194,937

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,334,876 2,845,953 488,923

OTHER FINANCING USES
Transfers Out (1,746,124) (1,723,969) 22,155
NET CHANGE IN FUND BALANCE 1,610,907 1,099,829 511,078
Fund Balance - Beginning of Year 3,043,472 3,043,472 -
FUND BALANCE - END OF YEAR $ 4,143,301 $ 4,654,379 $ 511,078

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, 2025
(117)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments 2,009,607 $ 2,216,656 $ 207,049 $ Investment and Rental 26,500 224,035 197,535
Total Revenues 2,036,107 2,440,691 404,584

EXPENDITURES
Current:

Public Works 1,528,737 1,399,412 129,325
NET CHANGE IN FUND BALANCE 1,041,279 507,370 533,909
Fund Balance - Beginning of Year 3,088,625 3,088,625 -
FUND BALANCE - END OF YEAR $ 4,129,904 3,595,995 $ $ 533,909

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, 2025
(118)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 1,715,022 $ 1,599,906 $ (115,116) $
Investment and Rental 61,070 287,053 225,983
Miscellaneous - 12,385 12,385
Total Revenues 1,776,092 1,899,344 123,252

EXPENDITURES
Current:

Public Works 3,209,282 1,647,815 1,561,467
NET CHANGE IN FUND BALANCE (1,433,190) 251,529 1,684,719 Fund Balance - Beginning of Year 4,187,624 4,187,624 -
FUND BALANCE - END OF YEAR $ 2,754,434 $ 4,439,153 $ 1,684,719

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, 2025
(119)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 3,631,818 $ 1,330,470 $ (2,301,348) $ Investment and Rental 60,460 149,127 88,667
Total Revenues 3,692,278 1,479,597 (2,212,681)

EXPENDITURES
Current:

Public Works 115,000 206,993 (91,993)
Capital Outlay: 2,269,785 1,987,948 281,837
Total Expenditures 2,384,785 2,194,941 189,844

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (715,344) 1,307,493 (2,022,837)
Fund Balance - Beginning of Year 2,380,974 2,380,974 -
FUND BALANCE - END OF YEAR $ 3,688,467 $ 1,665,630 $ (2,022,837)

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, 2025
(120)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 1,740,189 $ 1,318,051 $ (422,138) $
Investment and Rental 37,040 215,435 178,395
Total Revenues 1,777,229 1,533,486 (243,743)

EXPENDITURES
Current:

Public Works 152,728 61,089 91,639
Capital Outlay 1,835,174 1,745,829 89,345
Total Expenditures 1,987,902 1,806,918 180,984

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (273,432) (210,673) (62,759)
Fund Balance - Beginning of Year 2,984,586 2,984,586 -
FUND BALANCE - END OF YEAR $ 2,773,913 $ 2,711,154 $ (62,759)

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, 2025
(121)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 5,623,236 $ 2,620,220 $ (3,003,016) $ Investment and Rental 15,530 25,437 9,907
Total Revenues 5,638,766 2,645,657 (2,993,109)

EXPENDITURES
Current:

Public Works 93,662 68,778 24,884
Capital Outlay 843,059 826,049 17,010
Total Expenditures 936,721 894,827 41,894

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,750,830 4,702,045 (2,951,215)

OTHER FINANCING USES
Transfers Out (836,669) (839,169) 2,500
NET CHANGE IN FUND BALANCE 911,661 3,865,376 (2,953,715) Fund Balance - Beginning of Year (285,851) (285,851) -
FUND BALANCE (DEFICIT) - END OF YEAR $ 3,579,525 $ 625,810 $ (2,953,715)

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, 2025
(122)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Investment and Rental - $ $ 193,568 $ 193,568
Miscellaneous 9,000 92,716 83,716
Total Revenues 9,000 286,284 277,284
Fund Balance - Beginning of Year 2,831,172 2,831,172 -
FUND BALANCE - END OF YEAR $ 2,840,172 $ 3,117,456 $ 277,284

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, 2025
(123)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Miscellaneous - $ $ - $ -
Fund Balance - Beginning of Year 705,599 705,599 -
FUND BALANCE - END OF YEAR $ 705,599 $ 705,599 $ -

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, 2025
(124)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 81,000 $ 80,413 $ (587) $
Investment and Rental 9,030 30,615 21,585
Miscellaneous - 13,421 13,421
Total Revenues 90,030 124,449 (34,419)

EXPENDITURES
Current:

Public Works 352,820 352,681 139
NET CHANGE IN FUND BALANCE (262,790) (228,232) 34,558
Fund Balance - Beginning of Year 562,540 562,540 -
FUND BALANCE - END OF YEAR $ 299,750 $ 334,308 $ 34,558

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, 2025
(125)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Investment and Rental 15,910 $ 106,818 $ 90,908 $

EXPENDITURES
Current:

Community Development 129,449 177,315 (47,866)
NET CHANGE IN FUND BALANCE (70,497) (113,539) 43,042
Fund Balance - Beginning of Year 953,748 953,748 -
FUND BALANCE - END OF YEAR $ 883,251 840,209 $ $ 43,042

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, 2025
(126)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Charges for Services 140,000 $ 229,699 $ 89,699 $
Investment and Rental 10,670 99,762 89,092
Total Revenues 150,670 329,461 178,791

EXPENDITURES
Current:

General Government 216,518 49,057 167,461
NET CHANGE IN FUND BALANCE 280,404 (65,848) 346,252
Fund Balance - Beginning of Year 1,424,894 1,424,894 -
FUND BALANCE - END OF YEAR $ 1,705,298 1,359,046 $ $ 346,252

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, 2025
(127)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments 18,050 $ 590 $ $ (17,460)
Intergovernmental 1,453,058 1,169,194 (283,864)
Investment and Rental 7,420 51,956 44,536
Total Revenues 1,478,528 1,221,740 (256,788)

EXPENDITURES
Current:

Parks and Recreation 1,303,836 1,157,401 146,435
NET CHANGE IN FUND BALANCE 174,692 64,339 (110,353)
Fund Balance - Beginning of Year 914,362 914,362 -
FUND BALANCE - END OF YEAR $ 1,089,054 $ 978,701 $ (110,353)

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, 2025
(128)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Miscellaneous - $ $ 52,563 $ 52,563

EXPENDITURES
Current:

Public Works 37,355 14,321 23,034
Total Expenditures 37,355 14,321 23,034

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 38,242 (37,355) 75,597
Fund Balance - Beginning of Year 320,065 320,065 -
FUND BALANCE - END OF YEAR $ 282,710 $ 358,307 $ 75,597

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, 2025
(129)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 62,618 $ 77,523 $ 14,905 $

EXPENDITURES
Current:

Public Works 144,258 144,254 4

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (66,731) (81,640) 14,909
Fund Balance (Deficit) - Beginning of Year (5,821) (5,821) - FUND BALANCE (DEFICIT) - END OF YEAR $ (87,461) $ (72,552) $ (14,909)

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, 2025
(130)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental 954,810 $ 897,022 $ (57,788) $
Investment and Rental - 116,973 116,973
Total Revenues 954,810 1,013,995 59,185

EXPENDITURES
Current:

Public Works 282,823 240,799 42,024
Capital Outlay: 3,293,971 1,685,184 1,608,787
Total Expenditures 3,576,794 1,925,983 1,650,811
NET CHANGE IN FUND BALANCE (2,621,984) (911,988) 1,709,996 Fund Balance - Beginning of Year 2,013,142 2,013,142 -
FUND BALANCE - END OF YEAR $ (608,842) $ 1,101,154 $ 1,709,996

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, 2025
(131)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Intergovernmental $ 14,708,400 $ 612,057 $ (14,096,343)

EXPENDITURES
Current:

Public Works 50,101 42,620 7,481
Capital Outlay 611,018 594,130 16,888
Total Expenditures 661,119 636,750 24,369
NET CHANGE IN FUND BALANCE 14,047,281 (24,693) 14,071,974 Fund Balance (Deficit) - Beginning of Year (133,385) (133,385) - FUND BALANCE (DEFICIT) - END OF YEAR $ 13,913,896 $ (158,078) $ (14,071,974)

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, 2025
(132)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

REVENUES
Taxes and Assessments - $ $ 12,129 $ 12,129
Investment and Rental 1,030 5,955 4,925
Total Revenues 1,030 18,084 17,054
Fund Balance - Beginning of Year 85,496 85,496 -
FUND BALANCE - END OF YEAR $ 86,526 $ 103,580 $ 17,054

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, 2025
(133)
Variance with
Final Final Budget
Budgeted Positive
Amounts Actual (Negative)

EXPENDITURES
Current:

Capital Outlay 9,150,262 $ 4,276,557 $ 4,873,705 $

OTHER FINANCING SOURCES (USES)
Transfers in 7,681,987 7,681,987 -
Total Other Financing
Sources (Uses) 7,681,987 7,681,987 -
NET CHANGE IN FUND BALANCE (1,468,275) 3,405,430 4,873,705 Fund Balance - Beginning of Year 18,227,149 18,227,149 - FUND BALANCE - END OF YEAR $ 16,758,874 $ 21,632,579 $ 4,873,705 This page intentionally left blank.

STATISTICAL SECTION
(UNAUDITED)
This page intentionally left blank.

CITY OF PICO RIVERA, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2025
(134)
This part of the City of Pico Rivera’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information 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. 161-165

CITY OF PICO RIVERA, CALIFORNIA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(135)
2015-16 2016-17 2017-18 2018-19
Governmental Activities:

Net investment in capital assets 231,562,736 $ 223,976,465 $ 230,499,724 $ 232,291,558 $ Restricted 11,854,987 13,274,422 16,360,144 19,565,580
Unrestricted 23,639,282 25,960,550 18,735,128 17,860,702 Total governmental activities
net position 267,057,005 263,211,437 265,594,996 269,717,840 Business-type Activities:

Net investment in capital assets 31,761,672 32,604,651 33,236,723 33,680,356 Unrestricted (16,385,687) (13,590,642) (13,570,480) (10,315,352) Total business-type activities
net position 15,375,985 19,014,009 19,666,243 23,365,004 Primary Government:

Net investment in capital assets 263,324,408 256,581,116 263,736,447 265,971,914 Restricted 11,854,987 13,274,422 16,360,144 19,565,580
Unrestricted 7,253,595 12,369,908 5,164,648 7,545,350
Total primary government
net position 282,432,990 $ 282,225,446 $ 285,261,239 $ 293,082,844 $ Source: Statement of Net Position

CITY OF PICO RIVERA, CALIFORNIA

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(136)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 234,764,478 235,399,358 $ 237,260,527 $ 244,677,341 $ 255,047,492 $ 273,223,608 $ 23,672,803 22,661,392 27,978,094 31,184,653 36,136,236 36,413,091 23,195,137 15,000,619 38,557,279 51,605,739 59,693,556 68,657,153 281,632,418 273,061,369 303,795,900 327,467,733 350,877,284 378,293,852 36,403,397 34,129,206 40,280,888 50,610,138 54,345,848 56,922,589 (4,457,768) (3,505,373) (4,543,616) (3,373,379) 5,431,894 15,043,674 31,945,629 30,623,833 35,737,272 47,236,759 59,777,742 71,966,263 271,167,875 269,528,564 277,541,415 295,287,479 309,393,340 330,146,197 23,672,803 22,661,392 27,978,094 31,184,653 36,136,236 36,413,091 18,737,369 11,495,246 34,013,663 48,232,360 65,125,450 83,700,827 $ 313,578,047 303,685,202 $ 339,533,172 $ 374,704,492 $ 410,655,026 $ 450,260,115 $

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(137)
2015-16 2016-17 2017-18 2018-19
Expenses:

Governmental Activities:

General government $ 8,790,816 $ 10,048,704 $ 8,190,494 $ 10,589,517 Public safety 10,468,357 12,330,023 11,885,957 11,998,792 Public works 14,472,969 15,104,130 12,488,922 16,339,812 Parks and recreation 5,585,521 6,263,237 7,146,278 7,958,749 Health and welfare 5,266,352 5,587,157 5,311,548 5,416,605 Community development 2,827,231 2,540,908 4,407,647 4,194,760 Interest 1,626,960 2,628,006 1,013,498 1,507,430
Total governmental activities
net expenses 49,038,206 54,502,165 50,444,344 58,404,010 Business-type Activities:

Water 7,865,853 8,155,205 8,382,375 8,506,305
Pico Rivera Innovative Municipal Energy - - 4,900,927 12,944,076 Other enterprise funds 1,624,391 1,622,319 2,270,317 1,804,018 Total business-type activities
net expenses 9,490,244 9,777,524 15,553,619 23,254,399
Program Revenues:

Governmental Activities:

Charges for services:

General government $ 606,726 $ 739,432 $ 493,265 $ 657,280 Public safety 1,022,464 962,627 1,044,921 1,114,647
Public works 1,788,821 786,053 801,487 836,847
Parks and recreation 578,529 773,631 791,906 579,751
Health and welfare 202,262 174,314 198,238 205,328
Community development 746,395 873,536 1,196,287 982,241 Operating contributions and grants 12,817,403 11,093,802 16,678,586 13,168,680 Capital contributions and grants 1,620,798 778,116 2,874,341 3,604,445 Total governmental activities
program revenues 19,383,398 16,181,511 24,079,031 21,149,219 Business-type Activities:

Charges for services:

Water utility 8,304,240 8,819,676 9,802,992 9,904,084
Pico Rivera Innovative Municipal Energy - - 5,354,524 13,581,101 Other enterprise funds 1,302,652 1,478,893 1,176,972 1,119,812 Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities
program revenues 9,606,892 10,298,569 16,334,488 24,604,997 Primary government program revenues $ 28,990,290 $ 26,480,080 $ 40,413,519 $ 45,754,216 Net (Expense)/Revenue:

Governmental activities $ (29,654,808) $ (38,320,654) $ (26,365,313) $ (37,254,791) Business-type activities 116,648 521,045 780,869 1,350,598 Total primary government net expense $ (29,538,160) $ (37,799,609) $ (25,584,444) $ (35,904,193) Source Statement of Activities

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(138)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 11,832,065 $ 8,799,110 $ 8,089,449 $ 10,634,542 $ 12,634,852 $ 16,014,552 12,460,600 12,314,336 12,144,703 12,661,589 13,379,213 14,519,235 15,688,114 16,834,980 14,700,643 15,857,499 19,033,575 20,145,432 7,319,903 6,765,477 7,457,649 8,540,605 9,252,519 9,508,665 5,508,857 6,248,362 6,414,485 7,274,930 7,372,371 7,447,266 5,269,424 4,630,014 10,891,361 5,957,282 6,295,744 6,280,740 1,527,256 1,486,071 1,450,395 1,394,492 1,346,707 1,306,723 59,606,219 57,078,350 61,148,685 62,320,939 69,314,981 75,222,613 8,743,689 9,503,242 9,570,530 7,461,720 9,464,358 10,548,472 12,800,550 16,116,785 17,222,547 18,935,357 21,514,631 24,735,685 1,411,093 1,980,185 1,430,189 1,417,790 2,010,965 2,365,913 22,955,332 27,600,212 28,223,266 27,814,867 32,989,954 37,650,070 $ 310,572 $ 415,826 $ 545,101 $ 1,161,745 $ 469,367 $ 655,563 970,410 1,160,968 1,163,935 1,144,044 1,163,574 1,157,168 852,467 878,464 882,256 991,248 1,011,371 1,065,807
359,398 63,530 279,041 487,136 661,269 1,043,136
9,104 155,361 285,648 184,645 184,993 165,314
826,524 1,240,644 1,681,960 2,003,316 1,647,237 2,199,278 13,826,068 16,416,848 26,561,448 22,046,380 27,540,888 33,143,012 5,855,720 2,986,830 5,387,593 3,207,183 946,727 2,123,072 23,010,263 23,318,471 36,786,982 31,225,697 33,625,426 41,552,350 10,376,513 10,641,130 11,180,400 10,989,386 12,151,949 17,105,110 16,685,058 14,798,777 18,030,558 24,006,009 28,338,604 28,363,839 1,056,567 1,841,744 1,195,085 1,073,920 1,652,800 1,675,690 - - 476,602 246,661 - -
- - - 2,518,595 2,183,414 929,276
28,118,138 27,281,651 30,882,645 38,834,571 44,326,767 48,073,915 $ 51,128,401 # $ 50,600,122 $ 67,669,627 $ 70,060,268 $ 77,952,193 $ 89,626,265 $ (36,595,956) $ (24,361,703) $ (31,095,242) $ (35,689,555) $ (33,670,263) 5,162,806
(33,759,879) $
(318,561) 2,659,379 11,019,704 11,336,813 10,423,845
$ (31,433,150) # $ (34,078,440) $ (21,702,324) $ (20,075,538) $ (24,352,742) $ (23,246,418)

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(139)
2015-16 2016-17 2017-18 2018-19
General Revenues and Other
Changes in Net Position:

Governmental Activities:

Property taxes 10,049,454 $ 10,591,691 $ 11,173,640 $ 11,734,058 $ Sales taxes 17,766,538 17,637,948 17,575,729 19,468,221 Franchise taxes 1,654,275 1,582,026 1,703,255 1,729,336 Utility users taxes 3,385,361 3,276,321 3,142,090 2,939,221 Other taxes 1,850,151 1,632,337 1,807,130 1,968,094
Investment earnings 193,684 347,422 637,086 1,528,199
Gain on sale of property 174,424 - - -
Miscellaneous 283,352 450,783 662,225 1,007,091
Transfers 479,232 (1,043,442) 42,027 -
Special Item (704,496) - - -
Total governmental activities 35,131,975 34,475,086 36,743,182 40,374,220 Business-type Activities:

Investment earnings 2,128,937 2,073,537 2,025,078 2,140,163 Other - - - -
Transfers (479,232) 1,043,442 (42,027) -
Gain on bond defeasance - - - -
Extraordinary item 704,496 - - -
Total business-type activities 2,354,201 3,116,979 1,983,051 2,140,163 Total primary government 37,486,176 $ $ 37,592,065 $ 38,726,233 $ 42,514,383 Change in Net Position:

Governmental activities $ 5,477,167 $ (3,845,568) $ 10,377,869 $ 3,119,429 Business-type activities 2,470,849 3,638,024 2,763,920 3,490,761 Total primary government $ 7,948,016 $ (207,544) $ 13,141,789 $ 6,610,190 Source: City of Pico Rivera Finance Division
Statement of Activities

CITY OF PICO RIVERA, CALIFORNIA

CHANGE IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(140)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 13,000,934 12,259,774 $ 13,831,113 $ 15,016,822 $ 15,379,635 $ 16,207,096 $ 21,325,436 19,364,272 24,551,320 25,116,979 26,136,067 26,839,604 1,787,568 1,876,407 1,956,998 2,063,404 2,084,370 2,048,636 3,064,500 3,157,258 3,567,128 4,001,578 3,881,820 4,182,473 1,690,687 2,055,932 1,926,617 3,867,144 4,964,759 5,061,751 1,502,934 542,108 (197,845) 2,035,505 5,558,556 5,163,739 - - - 928,625 149,904 107,312
269,750 372,853 889,854 1,793,456 977,447 2,671,053
- - - (56,438) (33,452) (42,650)
- - - - - (1,152,183)
39,939,485 42,330,928 46,525,185 54,767,075 59,099,106 61,086,831 2,096,023 1,640,357 449,236 423,345 1,170,718 1,719,249 - - - - - 2,777
- - - 56,438 33,452 42,650
- - 683,028 - - -
- - - - - -
2,096,023 1,640,357 1,132,264 479,783 1,204,170 1,764,676 $ 42,035,508 $ 43,971,285 $ 47,657,449 $ 55,246,858 $ 60,303,276 $ 62,851,507 3,343,529 8,571,049 22,163,482 23,671,833 23,409,551 27,416,568 7,258,829 1,321,796 3,791,643 11,499,487 12,540,983 12,188,521 $ 10,602,358 $ 9,892,845 $ 25,955,125 $ 35,171,320 $ 35,950,534 $ 39,605,089

CITY OF PICO RIVERA, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(141)
2015-16 2016-17 2017-18 2018-19
General Fund:

Nonspendable 25,198,662 $ 25,209,917 $ 25,168,800 $ 28,002,854 $ Restricted 2,368,600 - 1,061,066 -
Committed 9,479,500 9,476,700 9,665,400 10,284,000
Assigned 14,376,800 14,426,700 13,256,200 14,039,900
Unassigned 12,882,331 10,851,445 12,063,120 9,067,136
Reserved - - - -
Unreserved - - - -
Total general fund $ 64,305,893 $ 59,964,762 $ 60,153,520 $ 62,454,956 All Other Governmental Funds:

Nonspendable $ - $ - $ 4,508 $ -
Restricted 11,074,536 12,927,436 15,566,814 31,791,493
Assigned 600,000 600,000 600,000 600,000
Unassigned (2,141,161) (1,749,394) (1,607,854) (60,712) Total all other governmental funds $ 9,533,375 $ 11,778,042 $ 14,563,468 $ 32,330,781 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)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 23,232,000 22,096,478 $ 26,139,104 $ 26,900,752 $ 27,360,759 $ 23,465,725 $ 1,372,990 1,087,825 1,180,688 1,335,720 1,510,564 2,311,713 20,510,328 10,169,300 24,517,211 28,903,778 29,660,398 30,868,540 13,717,940 13,991,300 14,926,791 20,990,019 25,239,889 26,046,510 14,366,714 17,752,704 6,458,368 4,139,702 1,167,302 3,705,970 - - - - - -
- - - - - -
$ 65,097,607 $ 73,199,972 $ 73,222,162 $ 82,269,971 $ 84,938,912 $ 86,398,458 $ - $ - $ - $ - $ - $ -
33,195,861 34,780,540 37,428,998 31,704,104 34,437,022 31,213,841 - 232,477 11,590,609 13,312,296 18,227,149 21,632,579
(1,257,821) (1,046,569) (502,874) (1,829,920) (5,457,878) (856,288) $ 31,938,040 $ 33,966,448 $ 48,516,733 $ 43,186,480 $ 47,206,293 $ 51,990,132

CITY OF PICO RIVERA, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(143)
2015-16 2016-17 2017-18 2018-19
Revenues:

Taxes and assessments $ 35,534,141 $ 34,592,924 $ 35,567,380 $ 38,653,543 Licenses and permits 2,491,636 2,442,190 2,960,639 2,861,711 Intergovernmental 12,214,500 11,927,598 13,433,014 12,973,062 Charges for services 1,871,009 2,124,665 1,851,030 1,819,310 Fines, forfeitures and penalties 1,031,031 898,203 1,002,532 1,109,430 Investment income 341,746 488,369 812,776 1,433,476
Miscellaneous 785,171 538,177 5,593,359 1,436,364
Total revenues 54,269,234 53,012,126 61,220,730 60,286,896 Expenditures:

General government 6,805,810 11,819,289 12,938,296 7,901,483 Public safety 10,439,469 11,375,573 11,857,271 11,971,740 Public works 9,707,823 10,255,784 14,095,351 15,527,553 Parks and recreation 4,554,724 5,374,259 6,122,665 6,993,470 Health and welfare 5,266,352 5,587,157 5,311,548 5,416,605 Community development 2,787,070 3,435,809 4,367,766 4,157,152 Capital outlay 7,287,913 2,453,883 1,547,832 1,633,063
Debt service:

Principal retirement 635,000 980,000 865,000 1,090,000
Interest and other charges 1,682,562 655,944 1,061,150 1,530,496 Lease principal - - - -
Lease Interest - - - -
Bond issuance costs - 520,424 - 398,345
payments to refunding escrow agent - 2,368,685 - -
Total expenditures 49,166,723 54,826,807 58,166,879 56,619,907 Excess (deficiency) of revenues
over (under) expenditures 5,102,511 (1,814,681) 3,053,851 3,666,989 Other Financing Sources (Uses):

Transfers in 19,274,660 3,986,323 3,309,866 4,667,515
Transfers out (10,488,538) (5,029,765) (3,767,839) (4,667,515) Lease proceeds - - - -
Sale of capital assets - - - -
- 30,470,000 - 14,695,000
Bond premium - 3,082,378 - 703,345
Payments to refunding escrow agent - (33,021,008) - -
Total other financing sources (uses) 8,786,122 (512,072) (457,973) 15,398,345 Special Item:

Forgiveness of debt (90,000) - - -
Net change in fund balances 13,798,633 (2,326,753) 2,595,878 19,065,334 Fund balances - July 1 65,690,188 79,488,821 72,121,110 75,720,403 Fund balances - June 30 $ 79,488,821 $ 77,162,068 $ 74,716,988 $ 94,785,737 Debt service as a percentage of
noncapital expenditures 5.53% 8.64% 3.42% 6.17%
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)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 39,179,631 $ 39,647,861 $ 44,310,901 $ 46,700,057 $ 47,874,143 $ 49,532,604 2,212,910 3,209,557 3,612,057 5,776,946 6,856,107 7,459,364 15,079,031 19,310,930 33,355,732 22,698,100 25,710,839 38,124,467 1,443,249 1,234,332 1,437,497 2,338,963 1,646,652 2,371,481 952,095 1,108,568 1,199,256 1,171,765 1,213,961 1,170,079 1,523,385 557,114 (359,384) 1,831,552 5,265,715 4,847,596 996,245 600,081 1,233,409 2,243,586 1,301,557 2,811,232 61,386,546 65,668,443 84,789,468 82,760,969 89,868,974 106,316,823 8,291,063 7,367,989 9,309,236 10,960,791 11,472,337 15,533,270 12,433,612 12,286,345 12,135,586 12,651,644 13,366,320 14,507,237 17,986,339 16,457,143 17,374,179 13,494,769 14,491,990 17,638,979 6,356,907 5,766,663 7,085,982 7,595,935 8,012,807 8,389,109 5,508,857 6,248,362 6,414,485 7,274,930 7,372,371 7,447,266 5,231,905 4,591,099 11,558,866 6,172,894 6,427,668 6,389,283 571,952 64,075 2,559,159 19,036,572 18,217,237 26,188,765 1,155,000 1,190,000 1,230,000 1,285,000 1,330,000 1,385,000 1,601,001 1,565,994 1,522,419 1,472,422 1,420,444 1,377,219 - - 24,584 25,205 44,016 45,309
- - 2,497 1,876 4,560 3,268
- - - - - -
- - - - - -
59,136,636 55,537,670 69,216,993 79,972,038 82,159,750 98,904,705 2,249,910 10,130,773 15,572,475 2,788,931 7,709,224 7,412,118 2,986,078 2,491,287 24,116,170 5,062,125 10,100,638 10,245,125 (2,986,078) (2,491,287) (25,116,170) (5,062,125) (11,223,792) (10,287,775) - - - - 102,880 -
- - - 928,625 (196) 26,100
- - - - - -
- - - - - -
- - - - - -
- - (1,000,000) 928,625 (1,020,470) (16,550)
- - - - - (1,152,183)
2,249,910 10,130,773 14,572,475 3,717,556 6,688,754 6,243,385 94,785,737 97,035,647 107,166,420 121,738,895 125,456,451 132,145,205 $ 97,035,647 $ 107,166,420 $ 121,738,895 $ 125,456,451 $ 132,145,205 $ 138,388,590

5.42% 5.46% 4.66% 4.74% 4.44% 3.52%

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
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
2023-24 15,302,866 26,248,659 522,694 76,769
2024-25 16,109,132 26,919,842 404,496 97,964
Change from
Base Year 2015-16 60% 52% -3% 278%
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
$ 1,654,275 $ 3,385,361 $ 1,432,213 $ 34,731,675
1,582,026 3,276,231 1,210,024 34,749,026
1,703,255 3,142,090 1,382,588 35,435,557
1,729,336 2,939,221 1,454,896 37,818,051
1,787,568 3,064,500 1,209,199 38,123,543
1,876,407 3,157,258 1,611,415 41,405,247
1,956,998 3,567,128 1,393,084 45,833,126
2,063,404 4,001,578 3,270,000 50,065,914
2,084,370 3,881,820 4,442,065 52,559,243
2,048,636 4,182,473 4,657,255 54,419,798
24% 24% 225% 57%

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 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 2023-24 4,527,834,493 698,284,332 1,196,139,002 456,195,038 109,615 6,878,562,480 0.0916 2024-25 4,746,718,146 731,764,004 1,231,830,314 478,096,782 - 7,188,409,246 0.0915 *Other property includes recreational, institutional, vacant, and miscellaneous property.

Source: Los Angeles County Assessor 2024/25 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
Year Levied Amount Levy (Includes Refunds) Amount of Levy 2015-16 $ 2,511,115 2,552,922 $ 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% 144,759.00 4,048,127 100.00% 2023-24 4,029,440 3,926,062 97.43% 103,378.00 4,029,440 100.00% 2024-25 4,283,825 4,190,799 97.83% 93,026.00 4,283,825 100.00% 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
Total Collections to Date
Collected within the
Fiscal Year of Levy

CITY OF PICO RIVERA, CALIFORNIA

DIRECT AND OVERLAPPING GOVERNMENTS PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(149)
Agency 2015-16 2016-17 2017-18 2018-19
Basic Levy 1.00000 1.00000 1.00000 1.00000
El Rancho Unified School District 0.09630 0.09627 0.19173 0.17840 LA Community College District 0.03575 0.03596 0.04599 0.04621 Little Lake City School District 0.06522 0.00000 0.00000 0.00000 Los Nietos School District 0.08062 0.07063 0.08396 0.06878 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Montebello Unified School District 0.08715 0.14705 0.13514 0.13921 Rio Hondo Community College District 0.02712 0.02808 0.02748 0.02554 Whittier City School District 0.05757 0.05441 0.04781 0.05534 Whittier Union High School District 0.05063 0.06035 0.05781 0.05822 Total Direct & Overlapping Tax Rate 1.50387 1.49625 1.59342 1.57521 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 0.09355 0.09330 0.09301 0.09280
(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)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.17835 0.18754 0.15321 0.14140 0.16870 0.17471

0.02717 0.04016 0.04376 0.02488 0.06023 0.05136

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.06576 0.06442 0.05249 0.05639 0.05089 0.04881

0.00350 0.00350 0.00350 0.00350 0.00350 0.00700

0.09306 0.09706 0.09031 0.12770 0.11275 0.09160

0.02571 0.01361 0.01526 0.01535 0.02182 0.02334

0.05096 0.05151 0.04780 0.04848 0.04575 0.04561

0.05502 0.05433 0.05395 0.05342 0.05063 0.04532

1.49952 1.51214 1.46028 1.47110 1.51428 1.48776

0.08917 0.08917 0.08917 0.08917 0.08917 0.08917

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

0.09245 0.09231 0.09210 0.09184 0.09164 0.09147

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 89,136,794 $ 1.24%
Vestar California XXVI LLC 83,423,403 1.16% 70,584,846 $ 1.59% Center Point Properties Trust 68,932,928 0.96%
BCORE Mercury Lane Owner LLC 65,794,896 0.92%
Airef Pico Rivera Distribution Center 65,649,238 0.91%
TRPF CAM Pico Rivera Venture LLC 58,782,600 0.82%
Majestic AMB Pico Rivera 50,970,278 0.71% 42,813,442 0.96% Wal-Mart Real Estate Business Trust 43,516,779 0.61% 34,313,123 0.77% Pico Rivera Holdings LVT LLC 39,405,648 0.55%
GGF Pico Rivera LLC 39,000,165 0.54% 25,248,742 0.57%
Princeton Medical Holdings LLC 33,443,232 0.75%
General American Life Insurance Company 28,344,843 0.64% 8540 Whittier Boulevard 25,940,434 0.58%
AGNL Pastry LP 25,695,667 0.58%
Iron Mountain Information Mgmt 24,274,765 0.55%
Public Storage Inc 22,573,018 0.51%
$ 604,612,729 8.42% 333,232,112 $ 7.50%
Excludes government and tax-exempt property owners
Total City Value for 2015-16 $ 4,443,723,085
Total City Value for 2024-25 $ 7,188,409,246
Source: Los Angeles County Assessor 2024-25 and 2015-16 Combined Tax Rolls 2024-25 2015-16

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 Beacon Building Products Building Materials Cal Wholesale Material Supply Building Materials 5 CDW Government Office Supplies/Furniture Chevron Service Stations 6 Chevron Service Stations Cintas Business Services
7 Chick Fil A Quick-Service Restaurants Circle K Service Stations 8 Cintas Business Services Dal Rae Fine Dining
9 Dal Rae Fine Dining Food 4 Less Grocery Stores
10 In N Out Burdger Quick-Service Restaurants Home Depot Building Materials 11 L&W Supply(Calply) Building Materials In N Out Burger Quick-Service Restaurants 12 Lowes Building Materials Lowes Building Materials
13 Marshalls Family Apparel Marshalls Family Apparel
14 Raising Cane's Quick-Service Restaurants McDonalds Quick-Service Restaurants 15 Ross Family Apparel Oxnard Building Materials Building Materials 16 Rush Peterbilt Truck Center New Motor Vehicle Dealers Pico Rivera Gas & Carwash Service Stations 17 Suez Mobile Water Drugs/Chemicals Ross Family Apparel 18 Sunbelt Rentals Repair Shop/Equip. Rentals Rush Peterbilt Truck Center New Motor Vehicle Dealers 19 Target Discount Dept Stores Saw Service of America Heavy Industrial 20 Toshiba America Business Solutions Office Equipment Target Discount Dept Stores 21 Ulta Beauty Specialty Stores Toshiba America Business Solutions Office Equipment 22 Unisource Office Supplies/Furniture Unisource Office Supplies/Furniture 23 United Rentals Repair Shop/Equip. Rentals 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 = CY 2024 61.29%
CY 2015 60.61%
NOTE: The names are listed in alphabetical order and not by sales tax volume.

Source: State Board of Equalization, California Department of Taxes and Fees Administration , State Controller's Office, The HdL Fiscal Year 2024-25 Fiscal Year 2015-16

CITY OF PICO RIVERA, CALIFORNIA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(153)
Business-Type
Activities
Finance Authority Total Percentage Debt
Fiscal Revenue Lease Revenue Primary of Personal Per
Year Bonds (1) Liability (2) Bonds Government Income Capita 2015-16 31,510,767 $ $ - $ 42,271,468 $ 73,782,235 8.66% 1,148 $ 2016-17 32,438,350 - 40,013,319 72,451,669 6.10% 1,131
2017-18 31,439,322 - 37,620,169 69,059,491 5.78% 1,075
2018-19 45,590,194 - 35,082,018 80,672,212 6.34% 1,260
2019-20 44,277,732 - 32,393,869 76,671,601 5.71% 1,210
2020-21 42,930,248 - 29,545,719 72,475,967 4.91% 1,148
2021-22 41,542,775 86,524 9,577,364 51,206,663 3.20% 833 2022-23 40,100,302 61,319 8,412,506 48,574,127 2.86% 797 2023-24 38,612,829 120,183 7,182,648 45,915,660 2.56% 755 2024-25 37,070,356 74,874 5,887,790 43,033,020 2.26% 707 (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) City implement GASB 87 in FY 21/22 and recognize lease liability.

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
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
2023-24 - 38,612,829 38,612,829 0.561% 634.87
2024-25 - 37,070,356 37,070,356 0.516% 609.13
(1)
Note: Details regarding the outstanding debt can be found in the notes to the financial statements.

Source: City of Pico Rivera Finance Department
in the Statement of Net Position.

The Finance Authority Revenue Bonds are backed by lease payments made from General Fund Revenues. These lease payments and long-term debt are included

CITY OF PICO RIVERA, CALIFORNIA

DIRECT AND OVERLAPPING DEBT
JUNE 30, 2025
(155)
2024-25 Assessed Valuation: $ 7,188,409,246
Total Debt City Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2025 % Applicable (1) Debt 6/30/25 Metropolitan Water District $ 17,155,000 0.177% $ 30,364 Los Angeles Community College District 4,919,505,000 0.013 639,536 Rio Hondo Community College District 356,554,080 12.934 46,116,705 El Rancho Unified School District 167,821,350 99.995 167,812,959 Montebello Unified School District 228,369,179 0.692 1,580,315 Whittier Union High School District 142,657,284 0.522 744,671 Los Nietos School District 38,907,715 0.037 14,396
Whittier City School District 63,080,000 1.951 1,230,691 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 218,169,637 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations 3,036,637,390 $ 0.342% 10,385,300 $ Los Angeles County Superintendent of Schools Certificates of Participation 2,331,775 0.342 7,975 Montebello Unified School District Certificates of Participation 3,185,000 0.692 22,040 Whittier City School District Certificates of Participation 8,025,000 1.951 156,568 City of Pico Rivera General Fund Obligations 37,070,356 100 37,070,356 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 47,642,239 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $2,635,000 100.00% $2,635,000 TOTAL DIRECT DEBT $37,070,356
TOTAL OVERLAPPING DEBT $231,376,520
GROSS COMBINED TOTAL DEBT $268,446,876 (2)
Ratios to 2024-25 Assessed Valuation
Total Overlapping Tax and Assessment Debt…...................................................... 3.04% Total Direct Debt ($21,870,000)…......................................................................... 0.30% Combined Total Debt…............................................................................................ 3.52% Ratios to Redevelopment Successor Agency Incremental Valuation ($1,414,942,095):

Total Overlapping Tax Increment Debt…................................................................. 0.19% Source: MuniServices, LLC / Avenu Insights
that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value This page intentionally left blank.

CITY OF PICO RIVERA, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(156)
2015-16 2016-17 2017-18 2018-19
Debt limit $ 673,079,843 $ 710,507,871 $ 750,729,280 $ 791,460,728 Total net debt applicable to limit - - - -
Legal debt margin $ 673,079,843 $ 710,507,871 $ 750,729,280 $ 791,460,728 Total net debt applicable to the limit as a
percent of debt limit 0.00% 0.00% 0.00% 0.00%
Assessed value $ 4,443,723,085 $ 4,699,049,996 $ 4,960,278,250 $ 5,223,378,886 Add back: exempt real property 43,475,869 37,669,146 44,583,616 53,025,964 Debt limit (15% of total assessed value) $ 673,079,843 $ 710,507,871 $ 750,729,280 $ 791,460,728 Debt applicable to limit - - - -
Legal debt margin $ 673,079,843 $ 710,507,871 $ 750,729,280 $ 791,460,728 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 2024/25 Combined Tax Rolls HdL 2024/25 Roll Summary Report
Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
(157)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
$ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 $ 1,055,642,072 $ 1,103,756,816 - - - - - -
$ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 $ 1,055,642,072 $ 1,103,756,816

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
$ 5,524,451,955 $ 5,741,373,950 $ 6,134,582,164 $ 6,583,483,323 $ 6,958,088,146 $ 7,273,394,009 51,331,603 45,418,617 45,152,416 43,211,464 79,525,666 84,984,763 $ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 $ 1,055,642,072 $ 1,103,756,816 - - - - - -
$ 836,367,534 $ 868,018,885 $ 926,960,187 $ 994,004,218 $ 1,055,642,072 $ 1,103,756,816 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 2015-16 10,787,717 $ $ (5,745,991) $ 5,041,726 $ 1,638,500 3.08% 2016-17 11,969,572 (5,312,036) 6,657,536 1,635,875 4.07% 2017-18 11,825,467 (6,415,875) 5,409,592 1,636,050 3.31% 2018-19 11,995,293 (5,598,283) 6,397,010 1,638,750 3.90% 2019-20 12,398,054 (5,990,423) 6,407,631 1,638,700 3.91% 2020-21 12,260,342 (7,358,233) 4,902,109 1,635,900 3.00% 2021-22 12,457,186 (7,692,571) 4,764,615 1,635,350 2.91% 2022-23 13,838,551 (5,836,085) 8,002,466 1,636,775 4.89% 2023-24 15,036,147 (8,034,074) 7,002,073 1,639,900 4.27% 2024-25 19,008,073 (9,041,367) 9,966,706 1,639,450 6.08% (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 1,061,150 1,926,150 22.64
2018-19 41,859,180 885,000 1,043,650 1,928,650 21.70
2019-20 41,115,931 900,000 1,023,450 1,923,450 21.38
2020-21 45,235,968 925,000 998,225 1,923,225 23.52
2021-22 49,034,402 955,000 965,520 1,920,520 25.53
2022-23 56,495,651 995,000 926,250 1,921,250 29.41
2023-24 60,261,698 1,030,000 888,775 1,918,775 31.41
2024-25 63,661,088 1,065,000 860,550 1,925,550 33.06
(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
2019-20 871,222 255,000 577,969 832,969 1.05
2020-21 909,366 265,000 567,769 832,769 1.09
2021-22 1,126,471 275,000 557,169 832,169 1.35
2022-23 1,167,903 290,000 546,169 836,169 1.40
2023-24 1,144,155 300,000 531,669 831,669 1.38
2024-25 1,127,445 320,000 516,669 836,669 1.35
(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
2023-24 5,979,569 3,615,000 123,254 3,738,254 1.60
2024-25 10,354,768 (3) 3,720,000 67,875 3,787,875 2.73
(1) Total Successor revenues
(2) In 2021, the 2001 Redevelopment Agency Tax Allocation Refunding Bonds was refunded (3) Incudes forgiveness of debt revenue
Source: City of Pico Rivera Finance Department
2018 CERTIFICATES OF PARTICIPATION
2021 REDEVELOPMENT AGENCY TAX ALLOCATION REFUNDING BONDS (2) 2016 LEASE REVENUE BONDS (2)
1999 WATER AUTHORITY REVENUE BONDS - Last Ten Fiscal Years

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) 2015-16 64,272 $ 1,187,509 $ 18,476 6.20%
2016-17 64,046 1,193,963 18,642 4.80%
2017-18 64,260 1,272,762 19,806 4.50%
2018-19 64,033 1,342,369 20,963 5.20%
2019-20 63,374 1,400,330 22,096 4.90%
2020-21 63,157 1,477,282 23,390 13.30%
2021-22 61,442 1,600,898 26,055 9.70%
2022-23 60,975 1,698,355 27,853 5.00%
2023-24 60,820 1,794,670 29,507 4.90%
2024-25 60,858 1,902,269 31,257 5.90%
(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 BakeMark USA LLC Manufacturer 600 2.09% 300 1.06%
Feit Electric Company Warehouse For Distribution 207 0.72% Parts Authority LLC Wholesale Business 179 0.62%
Tforce Freight Inc. Freight 151 0.53%
Bay Cities Container Manufacturer 135 0.47% 130 0.46%
Lowes Hardware Store 133 0.46%
Dal Rae Resturant Fine Dining 118 0.41%
Northgate Market Grocery Store 116 0.40% 133 0.47%
Altamed Medical Group Healthcare & Hospitals 95 0.33%
Raising Cane's Quick-Service Restaurants 91 0.32%
Wal-Mart Supercenter Department Store 600 2.12%
Target Department Store 186 0.66%
First Source LLC Warehouse Storage 150 0.53%
Superior Grocers Grocery Store 150 0.53%
Home Depot Hardware Store 138 0.49%
Lubricating Specialties Co. Contractor 126 0.45%
So. CA Material Handling, Inc. Distribution Center 121 0.43% Total Top Employers 1825 6.36% 2034 7.19%
Total City Employment (3) 28,700 28,300
(1) Excludes government and tax-exempt property owners, Source: HDL Companies (2) Source: ACFR 2015-2016, removed government and tax-exempt owners. (3) Total City Labor Force provided by EDD Labor Force Data. 2024-25 (1) 2015-16 (2)

CITY OF PICO RIVERA, CALIFORNIA

FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(161)
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 General Government 25 30 30 31 30 29 31 32 34 34
Public Safety 8 8 9 9 7 7 7 7 7 5
Public Works 55 64 65 66 51 51 48 53 52 52
Parks & Recreation 21 26 26 27 24 25 26 27 28 28
Community Development 15 20 19 20 20 20 24 24 23 25
Water 8 9 10 10 10 10 9 11 15 15
Total 132 157 159 163 142 142 145 154 159 159
Source: City of Pico Rivera Finance Department
Fiscal Year

CITY OF PICO RIVERA, CALIFORNIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(162)
Function 2015-16 2016-17 2017-18 2018-19
Police:

Calls dispatched 24,523 26,177 25,363 22,854
Crime reports 10,268 7,275 6,680 6,288
Moving citations 3,296 3,146 3,931 3,216
Parking citations - Sheriff 171 158 69 167
Parking citations issued by Public Safety 15,468 16,285 15,985 28,037 Streets and Highways:

Asphalt repair (in tons) 100 2,523 7,263 4,813
Curb & gutter repair (lineal ft.) 500 146 121 200
Sidewalk repair (lineal ft.) 1,600 2,523 7,263 208
Traffic signals maintained 47 47 47 47
Water:

Number of customer accounts 9,435 9,435 9,435 9,435
Average daily consumption (millions of gallons) 4
Sewers:

Feet of sewer mains root cut/chemically treated 0* 0 0 0 Maintenance:

Square ft. graffiti removal 100,000 150,000 229,000 117,536 Streetsweeping miles 10,400 21,285 21,285 21,285
Trees trimmed per year 5,000 4,000 3,000 2,500
Culture and Recreation:

Youth sports 818 671 517 825
Aquatics 6,960 10,715 10,502 11,114
Recreation classes 4,825 4,932 7,076 10,398
Senior Center participants 110,632 135,889 151,669 135,354 (*) 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)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
31,780 29,039 29,532 30,863 26,666 26,846
5,969 5,255 5,563 5,655 5,185 4,536
1,770 2,720 3,168 2,480 1,703 2,168
74 20 22 65 68 62
16,543 20,974 20,957 20,950 20,111 20,492
4,061 1,312 12,114 30,556 32,661 26,084
606 1,220 5,904 9,477 10,199 4,758
2,008 2,400 9,010 3,449 2,337 5,982
47 48 48 47 47 47
9,450 9,452 9,470 9,514 9,515 9,534
44444 4
00000 0
89,299 260,000 265,000 273,000 275,000 300,000
21,285 21,285 21,285 21,285 21,285 21,285
751 614 3,035 2,569 3,577 4,200
292 0 530 1,440 1,829 1,941
8,811 0 0 0 0 0
5,107 2,289 1,678 1,307 1,391 1,682
97,080 0 5,500 35,636 62,048 63,248

FISCAL YEAR

CITY OF PICO RIVERA, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
(164)
Fiscal Year
Function 2015-16 2016-17 2017-18 2018-19
Public Safety:

Police stations 1 1 1 1
Number of patrol units 12 14 14 14
Highways and Streets:

Miles of streets 115.2 115.2 115.2 115.2
Traffic Signals 47 47 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 flood control channel 17 17 17 17
Culture and Recreation:

Number of community centers 6 6 6 6
Source: City of Pico Rivera

CITY OF PICO RIVERA, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED)

LAST TEN FISCAL YEARS
(165)
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
111111
14 14 14 14 14 14
115.2 115.2 115.2 115.2 115.2 115.2
47 48 50 53 47 47
888888
333333
98 98 98 98 98 98
17 17 17 17 17 17
666666
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 2024-2025
Enclosure 2
12b
Steve Carmona
City Manager
Angelina Graves
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
Victor Ferrer
Director of Sustainability / PRIME
2 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 3 It is with great pride and gratitude that I present the City of Pico Rivera’s Fiscal Year 2024–25 Accomplishments Brochure. This year’s achievements reflect our unwavering commitment to the strategic goals that guide our service to the community: Fiscal and Organizational Sustainability, Economic Development and Land Use, Infrastructure, Health, Wellness and Safety, and Community Engagement. As we reflect on this year’s accomplishments, I extend my sincere thanks to our City Council, dedicated staff, and engaged community members for their partnership and passion. Together, we are building a city that is resilient, inclusive, and forward-thinking.

Fiscal and Organizational Sustainability
We continued to strengthen our financial foundation, closing the fiscal year with a surplus and exceeding revenue projections.

Through prudent budgeting and innovative fiscal strategies, we ensured that every dollar worked harder for our residents.

Additionally, we modernized operations and enhanced transparency across departments by adopting advanced technologies, including AI-powered legislative analysis tools.

Economic Development and Land Use
This year marked significant progress in revitalizing our economic landscape. From launching the second cohort of the Emprendedor@s Program to advancing transformative projects like the CenterPoint Baybar Road facility, we are laying the groundwork for long-term prosperity and job creation. These efforts are reshaping our physical environment while empowering our local entrepreneurs and small businesses.

Infrastructure
Our commitment to building a stronger, more resilient Pico Rivera is reflected in the investments we’ve made to upgrade and maintain our city’s infrastructure. This year, we focused on projects that enhance safety, accessibility, and quality of life for all residents. Highlights include:
• Smith Park Synthetic Turf Replacement Project: Delivered a safe and high-quality playing surface for sports and recreation. • Youth Center Renovation: Upgraded facilities and amenities for young residents. • Road Resurfacing Project: Improved the condition and longevity of city streets.

Ongoing efforts such as pothole repairs, water system upgrades, graffiti abatement, and tree maintenance ensure that Pico Rivera’s infrastructure remains resilient, responsive, and ready for the future.

Health, Wellness and Safety
Public safety remains a top priority. This year, we transformed our safety service model by integrating cutting-edge technologies, including automated surveillance, acoustic detection, and license plate recognition. These tools enable a more proactive approach to crime prevention and improve emergency response, making our neighborhoods safer and strengthening the effectiveness of our law enforcement efforts.

Community Engagement
We deepened our connection with residents through inclusive programs and civic participation. From the “Leaders of the Pledge” youth initiative to our third annual City Council Goal-Setting Retreat, we fostered a culture of collaboration and transparency. Our community’s voice continues to shape our policies, priorities, and progress.

Looking Ahead
As we celebrate our FY 2024–25 accomplishments, Pico Rivera remains steadfast in its commitment to building a resilient and thriving future. In the year ahead, we will continue advancing our strategic goals through investing in innovative technologies, sustainable infrastructure, and inclusive economic development. Our commitment to public safety will be strengthened through the integration of smart solutions. New community engagement initiatives will empower every resident to have a voice in shaping our city’s direction. With major projects like the Washington Blvd Transit Oriented Development nearing completion and expanded partnerships in environmental stewardship, we are poised to deliver even greater impact. Together, we will continue moving Pico Rivera forward, creating a city that is safe, vibrant, and full of opportunity for all.

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
Gustavo V. Camacho
Mayor Pro Tem
Erik Lutz
Councilmember
Andrew C. Lara
Councilmember
4 City of Pico Rivera Fiscal Year 2024 -25 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 2024-25 Accomplishments Report 5 2024-25 City Awards
and Recognition
Office of Innovation and
Communication
Awarded $10,000 from the
Eastside Arts Initiative for the Los
Paseos Mural Pilot Program.

Awarded $850,000 for the HWB
Paseos Project under Community
Project Funding through
Congresswoman Linda Sanchez.

Office of Sustainability/ PRIME
Partnered with SGVCC to secure
a $150,000 Bezos Earth Fund
grant to plant 200+ native trees
citywide, enhancing air quality,
reducing heat, and improving
stormwater management.

The program encourages
residents to adopt and care for
trees, promoting community
stewardship.

Secured approximately $830,000
in grant funding to support
environmental sustainability
efforts, including urban greening,
clean energy, climate resilience,
waste reduction, and diversion
in Pico Rivera. This helps the City
meet its long-term climate and
environmental goals.

Received the 2023 Gateway
Cities Council of Governments
Energy Action Award – Platinum.

This year marked the inaugural
launch of the Platinum tier, which
is awarded to only one city, and
Pico Rivera was honored to
receive it.

Administrative Services
Received GFOA Award
for Distinguished Budget
Presentation for Biennial Budget
FY 2023-25
Received GFOA Award for
Excellence in Financial
Reporting for FY 2023-24 Annual
Comprehensive Financial Report
(ACFR)
Earned the national SolSmart
Gold designation, a prestigious
recognition for local governments
demonstrating a strong
commitment to advancing solar
energy. Pico Rivera is the first city
in the Gateway region to receive
this prestigious national honor.

The design highlights the City’s
leadership in streamlining solar
permitting processes, expanding
solar access, and encouraging
community-wide solar adoption.
6 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report Residents of the
City of Pico Rivera
City Attorney
City Manager
City
Council
Assistant
City Manager
Director of
Administrative Services
Director of
Public Works
Director of Parks
and Recreation
Director of Community
and Economic Development
City
Clerk
Director of Innovation
and Communications
Director of Sustainability /
PRIME
Director of
Human Resources
Sheriff
Captain
City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 7

ADMINISTRATION
• Advanced the City’s digital transformation through
the strategic deployment of artificial intelligence,
Internet of Things (IoT) solutions, and big-data
tools to streamline operations, improve decisionmaking, and enhance public-facing services. • Expanded the City’s AI leadership by integrating
CoPilot and Abstract’s AI-driven legislative and
policy analysis system, improving transparency,
reporting, and internal workflows.
• Positioned Pico Rivera as a statewide and
national thought leader by being among the
first municipalities to join the GovAI Coalition,
reinforcing our commitment to the ethical,
equitable, and purposeful use of AI in government.

CITY CLERK
• Successfully administered the General Municipal
Election for two (2) City Council seats.
• Updated the City’s Biennial Conflict-of-Interest
Code to ensure compliance with State regulations.
• Successfully held two (2) record destructions
as part of the Bi-Annual Records Destruction
Program, supporting responsible records
management.
• Launched the Agenda Training and Development
Program, including two (2) Agenda Reference
Guides to strengthen organizational capacity.
• Updated the Pico Rivera Municipal Code relating to
City seal and logo policy and procedures.
• Introduced a new Levine Act Form and revised the
Contract Routing Policy to enhance transparency,
streamline reviews, and reinforce ethical
standards.
• Established standardized policies and procedures for
invocations during City Council meetings.

INFORMATION SYSTEMS
• Expanded the Virtual City Hall platform, including a
redesigned 311 system and the launch of Express
Permits, Solar Permits, improving accessibility and
reducing processing times.
• Strengthened cybersecurity with Multi-Factor
Authentication, password management, cloud-based
antivirus, and enhanced email security.
• Implemented Neptune 360 for Water Utilities and the
new ArcGIS Online platform for modernized mapping
and data visualization.
• Implemented key policies such as the Computer Use
Policy, Incident Response Plan, Disaster Recovery
Plan, and updated Helpdesk processes to ensure
system reliability and organizational resilience.
• Migrated the Golf Course software to the cloud,
improving system accessibility, reliability, and overall operational efficiency.
• Launched Phase I of the City’s new virtualization
infrastructure and completed Citywide upgrades
to computers and datacenter network switches to
strengthen reliability and performance.

OFFICE OF SUSTAINABILITY / PRIME
• Maintained stable Pico Rivera Innovative Municipal
Energy (PRIME) power generation rates since Fall 2023
while meeting the City’s 70% reserve policy, ensuring
affordability and long-term financial sustainability.

FISCAL AND ORGANIZATIONAL

SUSTAINABILITY
8 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report

FISCAL AND ORGANIZATIONAL SUSTAINABILITY ACCOMPLISHMENTS

ADMINISTRATIVE SERVICES
• Published the FY 2023-24 Accomplishments Book to
strengthen public transparency.
• Published the “Budget-in-Brief” document,
which provides the community with a summary
of the City’s Annual Budget, Priorities, and
Accomplishments.
• Delivered Monthly Financial Reporting to City
Council on revenues and expenditures for all funds,
strengthening financial transparency and reporting.
• Updated key administrative and financial policies,
including the Investment Policy, Capital Asset
Capitalization Policy, and Procurement and
Purchasing Procedures.
• Presented a balanced Biennial Budget for FY 2025-
27 centered on fiscal stability and service continuity. • Received the Government Finance Officers
Association (GFOA) Award for Excellence in Financial
Reporting, reflecting the City’s commitment to highquality financial stewardship.

HUMAN RESOURCES
• Finalized labor negotiations with all employee
groups, including Mid-Managers, Professionals, and
Confidential Employees Association (CEA), Service
Employees International Union (SEIU) Full-Time
Employees, SEIU Directors, and SEIU Part-Time,
ensuring alignment with organizational priorities
and financial sustainability.
• Launched Electronic Evaluations through Trakstar to
modernize employee development systems.
• Updated 12 job descriptions, processed 29
recruitments, and reviewed over 3,000 applications.
• Successfully resolved 10 long-term General Liability
claims.

PARKS AND RECREATION
• The City’s Golf Course received extensive facility and course upgrades to improve the user experience.

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)
Cybersecurity Maturity Assessment Score (Starting FY 2023-24) IT Initiatives/Projects (Starting FY 2023-24)
Employment Applications Received and Reviewed
Recruitments Opened to Date
New Hire Orientations (Full Time)
New Hire Orientations (Part-Time)
Eligibility Lists Certified/Interviews Facilitated (Full-Time) Eligibility Lists Certified/Interviews Facilitated (Part-Time) Held City Council Goal-Setting Retreat
Increase publicity available City Council Agendas
Ordinances Adopted into Law
Agreements Approved and Entered in
Public Records Request Fulfilled
File Boxes Destroyed per Record Retention Policy
Digital Records Destroyed per Record Retention Polilcy
Total Notarizations*
PRIME Participate Rate
Provide Monthly City Manager’s Report (Started April 2022) FY 2021-22
6,144
1,784
2 100%
499
-
-
-
2,705
57 14
48 33
45 1
100%
15 91
224
24 -
-
93%
25%
FY 2023-24
6,219
1,688
2 100%
815
75 50%
15 1,630
23 13
70 14
12 2
100%
16 142
253
92 3,629
-
94%
100%
FY 2022-23
5,378
2,041
2 100%
673
67 -
-
2,298
43 19
33 17
53 2
100%
14 121
245
21 -
-
94%
100%
FY 2024-25
7,951
2,283
2 100%
532
45 60%
17 3,324
41 15
44 17
34 0
100%
15 118
283
174
16,532
22 93%
100%
City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 9

ECONOMIC DEVELOPMENT AND

LAND USE ACCOMPLISHMENTS

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 FY 2021-22
1,809
2,683
59,591
62,681
$101,601,223
383
$57,937
-
202
112
-
FY 2023-24
2,232
4,165
61,425
69,458
$115,721,077
284
$59,518
3 178
109
68 FY 2022-23
2,597
2,220
59,939
69,035
$101,399,846
355
$57,581
8 292
248
45 FY 2024-25
1,566
2,604
61,521
75,458
$116,636,985
298
$62,396
11 173
88 37
10 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report

ECONOMIC DEVELOPMENT AND LAND USE ACCOMPLISHMENTS

OFFICE OF INNOVATION AND COMMUNICATIONS
• Awarded $10,000 from the Eastside Arts Initiative for the Los Paseos Mural Pilot Program.
• Awarded $850,000 for the HWB Paseos Project under
Community Project Funding through Congresswoman
Linda Sanchez.

COMMUNITY AND ECONOMIC DEVELOPMENT
• Comprehensive Zoning Code & Design Guidelines
Update
• A full revision of the Zoning Code is underway,
alongside new design standards for residential,
commercial, industrial, and mixed-use developments.

The initiative aims to promote high-quality, innovative design that fits the urban context. Significant progress has been made, with completion expected by late
2025.
• Commercial and Industrial Projects
ӹ Southern California Gas (SoCalGas) Company Office – 8101 Rosemead Blvd - Completed the 70,000 sq. ft. SoCalGas Training and Development
Facility.
ӹ Starbucks –9036 Beverly Blvd - new location
opened in January 2025 with indoor/ patio seating
and drive-thru.
ӹ Starbucks - 8650 Washington Blvd. (Pico Rivera
Towne Center) – relocated and expanded on a previous vacant site. ӹ CenterPoint – 3900 Baybar Rd - Completed
41,000 sq. ft. cross-dock facility, generating $1 million for the General Fund. Also approved a Development Agreement for a 60-foot digital billboard. ӹ Sky Zone Trampoline Park – 6101 Rosemead
Blvd
• Entitled a Conditional Use Permit at 6101 Rosemead
Boulevard for Sky Zone trampoline park (formerly
DD’s discount store).
• Residential Development
ӹ Residential Duplexes – Completed construction
of three (3) duplex residences on separate parcels
at 4119, 4121, and 4129 Rosemead Boulevard.
ӹ Residential Units – Completed the construction
of nine (9) residential units located at 8813 Gallatin
Road.
• Operational Metrics
ӹ Implementation of the Mobile Home Rent Stabilization Program. ӹ Implementation of the Tobacco Retail Licensing
Program.
ӹ Implementation of SolarApp to facilitate solar
permits.
ӹ Neighborhood Services Division Cases - Code
Enforcement cases increased 62% from 2022 to
2024, reflecting heightened community engagement.
ӹ Building Division Permit Activity - Permit issuance rose nearly 19% over three (3) fiscal years. ӹ Parking Enforcement - Parking Enforcement
responded to 1,206 service requests and towed 135
vehicles.
ӹ Housing Division - Achieved a 100% Section
Eight Management Assessment Program (SEMAP)
score and served 385 families through Housing
Choice Vouchers, the Housing and Urban Development (HUD)-funded program. ӹ Graduated 30 entrepreneurs from the Emprendedor@s small-business development program, which helps participants launch and grow small businesses.
• Homeless Count:
ӹ The City participated in the homeless count to
help Pico Rivera obtain funding for homelessness
(Measure A) in February 2025
City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 11

INFRASTRUCTURE

ACCOMPLISHMENTS
12 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report ӹ Telegraph Bridge guardrail emergency repairs to
ensure compliance with safety standards and maintain critical roadway connectivity. ӹ Road resurfacing and reconstruction to extend
pavement life, enhance drivability, and support the
City’s multi-year pavement management strategy.
ӹ Americans with Disabilities Act (ADA) sidewalk
improvements to improve mobility and safety for all
pedestrians, particularly seniors and individuals with
disabilities.
ӹ Smith Park synthetic turf replacement improved
field safety, durability, and playability for youth
leagues, school users, and community sports programs.
• Water Capital Improvement Projects:
ӹ Installed per- and polyfluoroalkyl substances
(PFAS) water treatment systems at Plant 1, Plant 2,
and Well 5 to significantly enhance water quality,
ensure compliance with emerging State and Federal
regulations, and protect public health by removing
harmful contaminants from the local groundwater
supply.
ӹ Implemented pressure-relief valves and zoning
partitions to stabilize water pressure, reduce system
stress, and extend the lifespan of aging pipelines.
• Water Authority Operations:
ӹ Continued essential daily water operations,
including meter reading, leak repairs, service line
replacements, Supervisory Control and Data Acquisition (SCADA) maintenance and PFA-related upgrades. • Parks and Facilities Improvements:
ӹ Repaired Senior Center skylight to address aging
components and improve natural lighting.
ӹ Replaced Heating, Ventilation, and Air Conditioning (HVAC) compressor at City Hall to improve system reliability, increase energy efficiency, and
ensure consistent climate controls.

OFFICE OF SUSTAINABILITY / PRIME
• Partnered with the Gateway Cities Council of
Governments (COG) to advance a last-mile broadband
initiative and install dark fiber through City Hall.

PARKS AND RECREATION
• Completed Youth Center Renovation: The Teen
Center underwent a much-needed renovation to
enhance safety, accessibility, and overall functionality.

Improvements included ADA compliance upgrades to
the restrooms, repair and replacement of damaged
north and south walls, new flooring, fresh paint, and
updated finishes throughout the facility. The project
also featured the installation of a new exterior kitchen door and frame, as well as new panic bars with
security mesh at the West entrance.
• Completed Senior Center Restroom Renovation: The
Senior Center restrooms were upgraded to improve
accessibility, functionality, and comfort for patrons.

The project included the installation of new fixtures,
updated utility elements, and hydro jetting of the
plumbing lines. All work was completed in compliance
with current ADA standards and building codes.

PUBLIC WORKS
• Construction Projects Completed:
ӹ City Hall Electric Vehicle (EV) charging stations to
support cleaner transportation options for City staff,
fleet vehicles, and the public.
ӹ Rosemead Blvd and major corridor beautification projects that improve safety, walkability, and the visual character of the City’s most heavily traveled routes. ӹ Storm drain repairs to address aging systems, reduce localized flooding risks, and improve long-term water conveyance reliability.

INFRASTRUCTURE ACCOMPLISHMENTS
Performance Activity
Replaced 12-inch Gate Valves
Maintenance Work Orders
Replaced old meters with AMI meters
Replaced Service Connections Citywide
Replaced Fire Hydrants*
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 2023-24
2 1,145
7,030
176
-
850
800
287
524
FY 2022-23
2 1,065
2,485
132
-
1,057
774
307
530
FY 2024-25
4 1,307
10 201
10 1,072
1,000
252
783

PERFORMANCE ACTIVITY FOR INFRASTRUCTURE
City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 13

HEALTH, WELLNESS AND

SAFETY ACCOMPLISHMENTS

ADMINISTRATION
• Modernized the City’s public safety model with
advanced tools such as:
ӹ Netwatch AI-powered monitoring with real-time
deterrence.
ӹ Flock automatic license plate readers.
ӹ ShotSpotter gunshot detection.
ӹ Southwest Patrol private security services.

INFORMATION SYSTEMS
• Supported installation of Netwatch security cameras at City parks.

OFFICE OF SUSTAINABILITY/ PRIME
• Adopted the City of Pico Rivera’s first-ever Climate
Action and Adaptation Plan (CAAP) in January 2025,
establishing a comprehensive roadmap to reduce
greenhouse gas emissions and enhance community
resilience.
• Launched the PRIME Power Choice+ Program, a
partnership between Tesla, Participate Energy, and the
City of Pico Rivera, that gives commercial customers
access to Tesla solar panels and battery systems at a
low, stable energy rate.
• Implemented a comprehensive organics waste
diversion strategy to meet SB 1383 compliance,
including hosting community education events with
compost bin giveaways, launching an enforcement
program with notices and penalties, and initiating
a Food Recovery Program—resulting in a favorable
review and 100% compliance with all state waste
diversion regulations.
• Partnered with SGVCC to secure a $150,000 Bezos
Earth Fund grant to plant 200+ native trees citywide,
enhancing air quality, reducing heat, and improving
stormwater management. The program encourages
residents to adopt and care for trees, promoting
community stewardship.
• Secured approximately $830,000 in grant funding to
support environmental sustainability efforts, including urban greening, clean energy, climate resilience,
waste reduction, and diversion in Pico Rivera.

This helps the City meet its long-term climate and
environmental goals.
• Received the 2023 Gateway Cities Council of
Governments’ Platinum Energy Action Award in
December 2024—the highest recognition offered
through the program, which includes tiers of Bronze,
Silver, Gold, and a single Platinum designation
awarded only to the region’s top-performing city—
affirming Pico Rivera’s leadership and excellence in
advancing regional energy-efficiency initiatives.
• Earned the national SolSmart Gold designation,
a prestigious recognition for local governments
demonstrating a strong commitment to advancing
solar energy. Pico Rivera is the first city in the Gateway region to receive this prestigious national honor. The
design highlights the City’s leadership in streamlining solar permitting processes, expanding solar access,
and encouraging community-wide solar adoption.
• Organized three used-oil collection events in the City of Pico Rivera, distributing educational materials and
more than 500 pieces of equipment to support the
safe and proper disposal of used motor oil.
14 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report

HEALTH, WELLNESS AND SAFETY ACCOMPLISHMENTS
• Hosted the City’s first Earth Day Event in April 2025 in collaboration with local community partners, offering
sustainability-focused activities, demonstrations, and
resources for families.
• Hosted an Earth Day Collection Drive-Thru in April
2025, collecting more than 4,000 lbs. of electronic
waste, 6,850 lbs. of paper through documentshredding service, and textiles. • Issued formal proclamations recognizing both Earth
Day and Arbor Day 2025, reaffirming the City’s
commitment to environmental stewardship and
community engagement.
• Maintained a strong PRIME Power Choice participation
rate for FY 2024–25, with approximately 93% of eligible households remaining enrolled in the renewable
energy program.
• Leveraged $26,400 in incentives from the Southern
California Regional Energy Network (SoCalREN) to
complete the Heat Pump Water Heater (HPWH)
project at two City facilities, supporting long-term
energy savings, operational efficiency, and addressing
deferred maintenance needs.

HUMAN RESOURCES
• Provided employee wellness screenings to support
early detection and preventative care.

PUBLIC WORKS
• Studies/Designs Completed:
ӹ Completed critical studies and design work,
including a vehicle miles traveled (VMT) analysis, the
Local Roadway Safety Plan, and regional bikeway
design.
• Parks and Facilities Daily Operations:
ӹ Continued daily maintenance of parks, playgrounds, and picnic areas, ensuring clean, safe, and welcoming environments throughout the year.
ӹ Enhanced security with new perimeter fencing
and improved lighting at Rio Vista Softball fields.

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
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
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
FY 2023-24
700
3,200
300,000
700
650
1,252
20,111
1,343
$6,198,025
1,059
360
330
60 54
180
FY 2022-23
712
2,572
293,164
797
618
1,312
17,727
1,201
$5,562,831
754
547
385
88 79
237
FY 2024-25
723
3,738
300,150
1,053
1,889
2,848
20,492
1,112
$6,546,389
853
510
0 52
62 186

PERFORMANCE ACTIVITY FOR HEALTH, WELLNESS, AND SAFETY
City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 15

COMMUNITY ENGAGEMENT

ACCOMPLISHMENTS

CITY CLERKS
• Launched the “Leaders of the Pledge” youth civic
engagement program.

OFFICE OF SUSTAINABILITY/ PRIME
• Partnered with the El Rancho Unified School District
and the EcoHero Show to deliver engaging, live
in-school educational performances focused on
environmental sustainability, helping to foster a
culture of environmental stewardship among Pico
Rivera’s youth.
• Launched XeroHome, an innovative online platform
that provides Pico Rivera residents with free,
personalized home energy assessments that result
in customized recommendations to help residents
lower utility bills, improve comfort, and reduce
greenhouse gas emissions.
• Hosted four community garden composting and
gardening workshops, providing residents with
hands-on training in proper organics management,
supporting SB 1383’s requirements for community
education on organics recycling, edible food
recovery, and waste-reduction practices.
• In October 2024, organized a community workshop
for the PRIME Power Choice Program to educate
residents on strategies to lower household energy
bills and enhance energy resiliency through rooftop
solar and battery storage options supported by the
City.
• Continued robust community outreach on organic
waste diversion in compliance with SB 1383,
participating in more than 20 in-person City events
and distributing over 1,000 kitchen pails and
educational materials to residents.

PARKS & RECREATION
• Successfully installed six (6) wrap designs, created by local artists, to complete the Utility Box Art Program
• Facility and Programming
ӹ Successfully hosted five (5) Grand Openings
for local businesses, renovated City facilities, and
programs
ӹ Implemented new youth sports clinics and
Special Olympics.
• Successfully hosted three (3) Adaptive dances
ӹ Halloween Adaptive Dance – 210 Participants
ӹ Valentine’s Adaptive Dance – 134 participants
ӹ Mardi Gras Adaptive Dance - 60 Participants
• Hosted the first Gaming Tournament in the City with
twelve (12) participants.
• Successfully facilitated dual usage of fields with the El Rancho High School at City facilities in Baseball,
Softball, Soccer (boys and girls), and Football for the 2024-2025 academic year.
• Grants
ӹ Successfully hosted twelve (12) outdoor excursions and experiences under the Outdoor Equity Program (OEP), a grant received from California
State Parks
• Special Events
ӹ Successfully hosted (24) city-wide Special
Events:
ӹ Successfully partnered with the Mexican consulate to host El Cosulado Sobre Ruedas for four weeks in February, providing service to approximately 3,000 people. ӹ Organized a staff-led Backpack Giveaway event,
distributing 600 backpacks to children in the community. ӹ We hosted our first 5K Moo Run event in the
city.
ӹ We hosted 8 monthly Pop-Up Events at Pico
Park
• REACH
ӹ Completed Federal Program Monitoring (FPM
audit) for three elementary schools (Magee, Rivera,
and South Ranchito) with zero findings and accolades for programming implementation. • Trips and Tours
ӹ Increase in Ticket Sales revenue from $11,267
in FY 22/23 to $26,135 in FY 23/24.
ӹ Increase the number of trips per calendar year.

Going from 9 trips in 2022 to 13 trips in 2025.
ӹ Expanded trip locations outside of the Prop A
Transit Service Area, allowing for trips in San Diego
and Santa Barbara Counties.
16 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report

COMMUNITY ENGAGEMENT ACCOMPLISHMENTS
ӹ Developed comprehensive marketing materials
enabling advertising up to three months before
trip dates, contributing to 95% of trips selling out
within 5 days of registration opening.
ӹ Developed online participant surveys that allow
for faster data collection and increased response
rates.
• Senior Center
ӹ Senior Center celebrated its 35th Anniversary
in September 2024, commemorated with a group
photo featuring approximately 234 participants
arranged in the shape of the number 35.
ӹ Pico Rivera Transit Services – approximately
175 applications were processed at the Senior
Center.
ӹ Veterans Resource Center – the Veterans Service Officer assisted approximately 216 individuals at the Senior Center.
ӹ Senior Service Case Worker – approximately
1,400 case worker appointments were scheduled.
ӹ Daily Meal Program: approximately 22,734
in-person nutritious meals were served at the Pico
Rivera Senior Center through the Southeast Area
Social Service Funding Authority Congregate Meal
Program.
ӹ Successfully partnered with AARP to offer the
AARP Income Tax Preparation program at the Pico
Rivera Senior Center. IRS-certified volunteers electronically filed tax returns for 230 individuals. • Transportation
ӹ Total Dial-A-Ride applicants Fiscal Year To Date:
107
ӹ Metro TAP Card Passes Fiscal Year To Date: 8
ӹ Dial-A-Cab Ridership Fiscal Year to Date: 6,131
ӹ Dial-A-Van Ridership: 4,884
ӹ May 15, 2025: Hosting a Transit Workshop for
Pico Rivera residents
ӹ Continue to partner with Rio Hondo College GO
RIO U-Pass program, which the City funds to provide Pico Rivera students with discounted access to eleven (11) transit agencies
• Media and Communications
ӹ “Award of Distinction” for Sunsets for Pico
Rivera Photography from California Association of
Public Information Officials (CAPIO)
ӹ Increase social media followers
ӹ Instagram increased by 2,200 followers
ӹ Facebook increased by 1,100 followers
ӹ YouTube 13,800 viewers
ӹ Completed ten (10) Profiles and three (3) Recreation Guides ӹ Improve website SEO and accessibility
ӹ 320k website views
Events
Fall, Winter, and Spring Camp
Summer Camp
Senior Special Events - average attendance
Firework Spectacular (no event FY 2024-25)
Movies in the Park (2 events)
Summer Street Fest (2 days)
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
Summer Food Program*
PlayPASS Program (started FY2023-24)
REACH Enrollement
*COVID-19 Impact
Approx. Attendees
FY 2021-22
138
522
46 12,000
400
15,500
10,000
5,000
450
10,000
1,000
6,000
20,000
450
44,870
-
475
Approx. Attendees
FY 2023-24
146
201
1,612
15,000
400
20,000
6,000
8,000
500
5,000
1,000
1,000
22,000
700
12,441
66 586
Approx. Attendees
FY 2022-23
143
608
93 15,000
500
18,000
7,000
8,000
400
5,000
1,000
6,500
22,000
400
13,634
-
429
Approx. Attendees
FY 2024-25
196
239
3,715
-
800
16,000
5,000
7,000
1,000
5,000
1,500
5,000
5,000
1,000
13,830
73 95,700

PERFORMANCE ACTIVITY FOR COMMUNITY ENGAGEMENT ACCOMPLISHMENTS City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 17 Department Initiatives
LOOKING AHEAD 2026
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 Improvement Projects. • Complete the Virtual City Hall and Mobile App Implementation • Develop a customized Public Safety Application to align with the various City Public Safety partners and enhance joint communication
• As the lead agency for the City’s Shared Services Agreement (CivicBuys), help promote our cooperative partnership with the Foundation for California Community Colleges (FCCC)
City Clerk
• Implementing a Digital Public Records Request system and launching a New Online Portal
• Establish a Proclamation and Certificate program with policy and procedures • Digitizing the 2026 Municipal Elections Process
• Agenda Handbook Redesign, including a new “Style Guide” and training for staff
• Complete the Citywide Transition to Digitized Documents (scanning) • Continue working on Statement of Economic Interest Form 700 Automation Process
Information Systems
• Complete the transition of permitting processes to 3Di, streamlining application management and improving efficiency in service delivery • Complete the BillPay with 3Di, enhancing payment processing and improving user experience for residents and businesses
• Implement continuous improvements to the 3Di Virtual City Hall (VCH) to enhance user experience, streamline processes, and increase efficiency in service delivery
• Complete the virtualization upgrade (phase 2), finalizing the transition to upgrading virtualized infrastructure to improve reliability, system performance, and resource efficiency
• Introduce an AI Policy to ensure responsible and ethical use of artificial intelligence across City operations, coupled with an AI Pilot Program empowering employees to use AI tools to improve efficiency and innovation in daily workflows.

Office of Sustainability
• Complete and launch the Climate Action Dashboard as part of the City’s Climate Action and Adaptation Plan (CAAP). The dashboard will serve as a public-facing tool to track progress on greenhouse gas reduction goals,

ADMINISTRATIVE SERVICES
• Implement “Paperless” Purchase Order Workflows
• Apply for the GFOA Award for Excellence in Financial Reporting • Apply for the GFOA Award for Distinguished Budget Presentation • Publish “Budget-in-Brief” brochure for print and online viewing for FY 2025-27 Budget
• Staff to attend training and professional development in Municipal Finance • Staff will partner with Avenue Insights to evaluate opportunities for enhancing UUT collection on streaming services
• Staff will assess the potential of utilizing Proposition 218 to support sewer revenue measures aimed at funding the City’s sewer infrastructure improvements.

Proposition 218 is a California constitutional amendment that governs how local governments can impose or increase property-related fees, including sewer rates.

It requires voter approval, ensuring transparency and input from property owners before new rates or fees can be adopted.
• Staff will continue to explore options for refinancing City bonds to ensure we are receiving the lowest rate.
• Obtain Los Angeles County Oversight Board and the California Department of Finance approval for the dissolution of the Successor Agency of the Pico Rivera Redevelopment Agency.
• Conduct a public hearing on water rates to initiate adjustments in accordance with the Consumer Price Index (CPI) for FY 2026-27 through FY 2030-31 monitor key sustainability metrics, and increase transparency and community engagement in the City’s climate initiatives.
• Launch the PRIME Access Program to provide 100% renewable energy at an additional 20% discount to 11,452 eligible CARE and FERA customers. • Secure funding to advance the Net Zero Energy City Hall Project, transforming City Hall into a fully decarbonized, energy-efficient facility. Key upgrades include solar panel, battery storage, heat pump HVAC and water heating, and smart building controls. This initiative positions City Hall as a leading model for municipal sustainability and climate leadership.
• Secure a “Tree City USA” designation from the Arbor Day Foundation to formally recognize the City’s commitment to urban forestry and environmental stewardship. • Initiate key CAAP actions to reduce emissions, including building electrification (BE

2.2), energy benchmarking (BE 3.1), expanding pedestrian, bicycle, and micromobility infrastructure (TL 2.1, TL 2.3), and improving Safe Routes to School (TL 2.2). • Advance climate resilience initiatives through tree planting and urban greening (CR

2.1), expanding access to cooling centers and resilience hubs (CR 2.3), and water conservation efforts, and drought-tolerant landscaping (CR 2.4) to protect public health, reduce urban heat, and enhance community preparedness. • Begin implementing municipal sustainability strategies, including a Green Fleet Strategy (MU 2.3), climate resilience in capital planning (MC 1.1), and expanding organic waste and circular economy programs (NS 2.1, NS 3.1) to cut emissions, reduce waste, and support SB 1383 compliance.

Office of Innovation and Communications
• Finalize the deliverables for the Rosemead/Lakewood Boulevard, which include the adoption of a Corridor Master Plan
• Complete the Historic Whittier Boulevard Back Alley Paseos Project and Mural Pilot • Program Advocate for project impact mitigation funding and for the preservation or inclusion of Avenida Vicente Fernandez as part of the scope of the Whittier Narrows Dam Safety Modification Project.
• Secure funding to complete design and environmental review of the Pico Rivera Regional Rail Station
• Establish a scope and launch the feasibility study for the Pico Rivera Commuter Rail • Station in partnership with the Los Angeles Metro.
• Finalize Citywide Branding and Marketing Project
• Initiate Downtown Pico Rivera Master Plan
• Initiate River Revitalization Master Plan
18 City of Pico Rivera Fiscal Year 2024-2025 Accomplishments Report

PARKS AND RECREATION
CIP Projects
• Begin Smith Park Aquatic Renovation Construction
• Complete Alebrije Dog Park Renovation
• Complete Rio Hondo Park Renovation
• Complete Pico Park Outdoor Restrooms Renovation
Program and Services
• Facility and Programming
• Revise City policies and resolutions to allow for the general public’s rental of Parks and Recreation facilities and fields.
• Special Events
• Provide seasonal Youth Gaming Tournaments
• Develop programming at Pico Park for youth and adults, such as Mommy and Me or Daddy and Me programs
• Media & Communications
• Enhance the YouTube channel through video content and production • Increase social media followers through interactive and engaging content and reels
• Produce media and marketing materials that resonate with residents and visitors
• Continue to publish the Profile Newsletter and Parks and Recreation Guide
• REACH
• Collaborating with ERUSD as the new fiscal agent per state mandates. • Increase attendance to 84 students at 7 sites and 104 students for the large school (Rivera Elementary).
• Trips and Tours
• Develop Return Customers program – provide perks such as early registration, preferred seating, and more to participants who attend 6 or more trips per calendar year.
• Develop new tour offerings to attract a wider audience, specifically the 21 – 45-year age range.
• Senior Center
• Increase attendance by providing new fitness and educational classes. • Continue to provide a variety of social and recreational activities. • Continue to provide fun-filled themed events throughout the year. • Transportation
• Continue public outreach to grow Dial-A-Ride program
• Host additional transit workshops to help patrons become more familiar and comfortable using the program
• Work with Public Works to improve the bus shelters throughout the City in partnership with LA Metro
• The City of Pico Rivera will allocate $4,105 to support the Rio Hondo College GO RIO U-Pass program, which offers bus passes to student residents of Pico Rivera.

PUBLIC WORKS
• Citywide Traffic Signal Safety Enhancements - This initiative focuses on enhancing the safety of traffic signals throughout the city. It includes upgrading signal equipment, improving visibility, and implementing advanced safety features to reduce accidents and improve overall traffic safety.
• City Hall Council Chambers Building Improvement - This project enhances the City Hall Council Chambers through interior upgrades, improved accessibility, and modernized facilities designed to better serve both the community and city officials. • HVAC Replacements - This project involves replacing outdated HVAC systems in various city buildings to improve energy efficiency, enhance indoor air quality, and ensure reliable heating and cooling for occupants.
• Residential Resurfacing Program - Overlay and Reconstruction Project - This project focuses on resurfacing and reconstructing residential streets to improve their condition and extend their lifespan. It includes overlaying new asphalt and reconstructing damaged road sections.
• Annual Signing and Striping Project - This project focuses on the annual maintenance and enhancement of road signs and pavement markings, ensuring that signage and striping are clear, visible, and current to improve road safety. • Water Main Replacement - This project involves replacing old and deteriorating water mains to ensure a reliable and safe water supply for residents. It includes upgrading the infrastructure to prevent leaks and improve water quality. • Pico Park Restrooms - This project involves renovating the restrooms at Pico Park to improve their condition, enhance accessibility, and provide better facilities for park visitors.
• Alebrije Dog Park - This initiative includes the development or renovation of Alebrije Dog Park to provide a safe and enjoyable space for dogs and their owners. It may include new amenities, improved landscaping, and enhanced safety features. • Smith Park Aquatic Center - This initiative focuses on the renovation of the Smith Park Aquatic Center, which aims to provide improved aquatic facilities, including pools, water features, and amenities for the community.

COMMUNITY AND ECONOMIC DEVELOPMENT
• General Plan Update to the Zoning Code and creation of design standards and guidelines for residential, commercial, industrial, and mixed-use developments. • Hazard Mitigation Plan & Emergency Operation Plan Update • Azul Townhome Development (under construction) - 4820 Durfee Avenue • 45-unit (for-sale) Townhome Development- Under Construction • Ventana Townhome Development (under construction) – 6540 Rosemead Blvd. • Former Knights Inn hotel – 95-unit townhomes (for-sale) • Tierra Mia Coffee-9003 Beverly Boulevard
• AltaMed Medical Group - 9406 Washington Blvd. (former Big Saver Grocery Store) • AltaMed medical clinic with 42 exam rooms and a pharmacy • Skyzone- 6101 Rosemead Boulevard (former DD’s Discounts) • Clean Fuels Transloading Project - 8920 Rex Road
• Distribution facility of renewable diesel, biodiesel, and sustainable aviation fuel
• InSite Development - 10016 Beverly Boulevard
• 358,000 sq. ft. warehouse with construction of new Beverly Blvd. bridge • Developer anticipates starting bridge construction in the summer of 2027 • Emprendedor@s Program – Second Cohort: an eight-week small business program focused on launching and growing businesses, building leadership skills, and networking. Graduation of 30 participants expected in Fall 2025 • Impact Fee Update
• Update the existing Parkland Acquisition Fee (land acquisition for parks); and • Establish new fees –1) Parks Fee (facilities/amenities at parks), 2) Public Facilities Fee (government buildings, community centers, etc.), 3) Traffic Fee (roadway and transportation network), and 4) Program Administration Fee.

HUMAN RESOURCES
• Implement employee training program for development and retention, such as:
• Leadership Academy, HR Academy, Customer Service, and more. • Complete the revision of all Job Descriptions
• Update personnel-related City Policies
• Create standard operating procedures for HR and Risk Management processes. • Implement and administer employee wellness programs
City of Pico Rivera Fiscal Year 2024-25 Accomplishments Report 19

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]
City of Pico RIvera
6615 Passons Blvd.

Pico Rivera, CA 90660
www.pico-rivera.org
Rolled Over PO FYE 2024-25
P.O. No. G/L Account # Department Vendor Description
PO
Amount
Encumbered
Amount
2023-229 100.30.3010-54500 Community Development RSG, Inc Implementing the mobilehome rent stabilization ordinance 300,000 164,480 2024-354 100.40.4010-54500 Public Works NCM Engineering Corporation Plan Check Services for entry road walls at 10016 Beverly Blvd 30,680 18,480 2025-048 100.30.3010-54400 Community Development Advanced Avant-Garde Corp. Oversee CDBG Program Admin 19,586 7,479 2025-104 100.60.6005-54500 Human Resource CINTAS CORP. AED's & First Aid Kits service citywide 40,235 2,205 2025-137 100.40.4010-54500 Public Works John L Hunter & Associates Inc. On-Call plan check services 12,134 429 2025-160 100.15.1500-54500 Administration LA County Sheriffs Department Contract City Law Enforcement Services 14,428,450 961,512 2025-167 100.15.1500-54500 Administration SOUTHWEST PATROL, INC. Provide Security Services at various locations city wide 659,000 293,273 2025-172 100.30.3046-54400 Community Development ATLAS PLANNING SOLUTIONS LHMP & EOP Update 155,530 88,610 2025-221 100.15.1500-54500 Administration PM Law Enforcement Services, LLC Public Safety Coordinator Consulting Services 72,000 36,000 2025-225 100.40.4030-54645 Public Works City of Downey Landscape Maintenance for Telegraph Rd. median island 40,000 10,811 2025-290 100.40.4010-54400 Public Works County of Los Angeles Dept of Public Works M&O Services for Durfee grade separation 53,000 53,000 2025-299 100.40.4010-54500 Public Works Willdan Engineering CM & Inspection services for Council Chamber 130,165 130,165 2025-308 100.15.1500-54500 Administration County of Los Angeles Probation Dept Provide a Prevention & Intervention Program (PIP) 127,000 95,250 2025-330 100.80.8220-53500 Parks & Recreation Advanced Exercise Equipment, Inc Aspire Elliptical Cross Trainer with SL Console 52,530 52,530 Total Fund 100 Purchase Orders Rolled Over at FY 2024-25 1,914,224 Enclosure 3
12c

COUNCIL

MEETING
DATE

COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action

DISCUSSION
ITEM
ACTION

ITEM DATE
STATUS:

Complete;
Pending;
On-going;
In-Progress
9/9/2025 Sanchez/Garcia Smoke Free Multi-Unit Housing Jan-26 Alvie Betancourt CED Agenda Report In Progress 11/12/2025 Sanchez/Camacho SNAP Benefits Assistanced to residents 11/12/2025 Sanchez/Garcia Tow Truck Company procurement process 11/12/2025 Camacho/Garcia Tow Truck Company ordinance regulation

GOOD OF THE ORDER