Sierra Madre City Council
January 28, 2025

CITY COUNCIL

MEETING AGENDA PACKET
Tuesday, January 28, 2025
5:30 pm
Sierra Madre City Council Chambers
232 W. Sierra Madre Boulevard
Sierra Madre, California 91024
Mayor Robert Parkhurst, Mayor Pro Tempore Kristine Lowe Council Members: Edward Garcia, Gene Goss, and Kelly Kriebs AGENDA

REGULAR MEETING

SIERRA MADRE CITY COUNCIL
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer
Tuesday, January 28, 2025
5:30 pm
City of Sierra Madre
City Council Chambers
232 W. Sierra Madre Boulevard
Sierra Madre, California 91024
The Brown Act provides the public with an opportunity to make public comments at any public meeting; As an alternative, public comment may be made by e-mail to [email protected] by 3:00PM on the day of the meeting. Emails will be acknowledged at the Council meeting, filed into public record, and scanned onto the City website for public review.

The meeting will be streamed live on the City’s website at www.cityofsierramadre.com, on Foothills Media website at http://www.foothillsmedia.org/sierramadre and broadcast on Government Access Channel 3 (Spectrum)

CODE OF CONDUCT
The purpose of a City Council meeting is to conduct City business. Members of the public that behave in a manner that interrupts or obstructs the Council’s ability to conduct City business may be asked to leave the meeting. Any and all demonstrations which disrupt, interrupt, or obstruct the Council’s ability to conduct City business are prohibited. No signs, posters or other large objects shall be brought into the Council Chambers or other meeting place if doing so would disrupt, disturb or otherwise impede the orderly course of the meeting.

CALL TO ORDER/ROLL CALL MEMBERS OF THE CITY COUNCIL
Mayor Parkhurst, Mayor Pro Tem Lowe, Council Member Garcia, Council Member Goss, Council Member Kriebs

PLEDGE OF ALLEGIANCE AND INSPIRATION
Council Member Garcia

APPROVAL OF MEETING AGENDA
Vote of the City Council to proceed with City business.

COUNCIL OUT FROM CLOSED SESSION
No Closed Sessions were held between January 21, 2025 and January 25, 2025.

APPROVAL FOR READING RESOLUTIONS AND ORDINANCES
Vote of the City Council to read all Ordinances and Resolutions by title only and waive the reading in full.

APPROVAL OF MEETING MINUTES
Approval of January 21, 2025, City Council Special Meeting minutes.

MAYOR AND CITY COUNCIL REPORTS
Reporting of Council Members' activities related to City business.

PUBLIC PARTICIPATION CODE OF CONDUCT
Your participation is welcomed and invited at all City Council meetings. The Council requests that participants refrain from making personal, slanderous, profane, or disruptive remarks. A person who continues to disrupt the orderly conduct of the meeting after being warned by the Mayor or designee to cease the disruption may be precluded from further participation in the meeting. No signs, posters, or other large objects shall be brought into official meeting places if doing so would disrupt, disturb, or otherwise impede the orderly course of the meeting.

PUBLIC COMMENT
The Council will listen to the public on any item on the agenda. In addition, the Council will devote time for public comment on items not on the agenda. Addressing the City Council from the audience is not permitted; all comments addressing the Council must be made from the podium. Only public comment made from the podium will be recognized by the City Council and entered into public record.

Providing Public Comment For Items on the Meeting Agenda Persons wishing to speak on any item on the agenda will be called during the comment period at the time the agenda item is brought forward. Persons wishing to speak on closed session items have a choice of doing so either immediately prior to the closed session or at the time for comments on items at the open session.

Provide Public Comment for Topics not on the Meeting Agenda Time shall be devoted to provide public comments for items not on the agenda. Under the Brown Act, Council is prohibited from taking action on items not on the agenda.

Providing Public Comment

1. Any person wishing to provide public comment is asked to complete a comment card.Each speaker will be limited to up to three continuous minutes, which may not be delegated or deferred.

2. A podium is provided for public comment. Comments addressed to the Council shall occur during the appropriate time on the agenda and should not be construed as an opportunity for dialogue.

ACTION ITEMS
Regardless of staff recommendation on any agenda item, the City Council will consider such matters, including action to approve, conditionally approve, reject, or continue such item.

PRESENTATION

PUBLIC WORKS WATER MAIN UPDATE

CONSENT
.
a) CONSIDERATION OF RESOLUTION 25-11 APPROVING CERTAIN DEMANDS It is recommended that the City Council approve Resolution 25-11 approving payment of City Warrants in the aggregate amount of $376,041.28, Sierra Madre Library Warrants in the aggregate amount of $7,723.70, and Payroll Transfer in the aggregate amount of $620,908.91; for the Fiscal Year ending June 30, 2025. b) GRANT OF EASEMENT TO SOUTHERN CALIFORNIA EDISION TO CONSTRUCT NEW ANCHORS AT TRACT 2456, ASSESSOR PARCEL NUMBER 5764-025-902, A CITY OWNED PROPERTY LOCATED AT 530 ALTA VISTA DRIVE, SIERRA MADRE,

CALIFORNIA
It is recommended that the City Council grant an easement to Southern California Edison at Parcel Number 5764-025-902 to construct, use, maintain, operate, alter, add to, repair, replace, inspect, relocate, and remove at any time and from time to time stub poles, guywires, anchors, and other appurtenant fixtures and/or equipment made for anchorage purposes.
c) CITY OF SIERRA MADRE ANNUAL COMPREHENSIVE FINANCIAL REPORT, AUDITOR’S REPORT, AND ASSOCIATED FINANCIAL REPORTS FOR FISCAL YEAR 2023/2024.

It is recommended that the City Council receive and file the Annual Comprehensive Financial Report for Fiscal Year 2023/2024.
d) SECOND READING OF ORDINANCE 1476 ADOPTING AN ADMINISTRATIVE

REMEDIES PROCEDURE FOR CHALLENGES TO FEES, CHARGES, AND

ASSESSMENTS
It is recommended that the City Council conduct a second reading of Ordinance 1476, by title only, waiving any further reading, and adopt Ordinance 1476. e) STATE HOMELAND SECURITY PROGRAM SUBRECIPIENT AGREEMENT FOR GRANT YEAR 2023
It is recommended that the City Council approve the grant agreement between the City of Sierra Madre and County of Los Angeles for a State Homeland Security Program grant and authorize the City Manager or his designee to execute the agreement and any additional documents related to the grant.

PUBLIC HEARING

1. CONSIDERATION OF RESOLUTION 25-10 APPROVING A CITY PARKING BAIL

SCHEDULE TO ESTABLISH OPERATIONAL COSTS ASSOCIATED WITH PARKING

ENFORCEMENT, INSTITUTING LATE PAYMENT PENALTY FINES FOR DELINQUENT

PAYMENT OF PARKING CITATIONS AND AUTHORIZE THE FINANCE DIRECTOR TO

MAKE ANY NECESSARY BUDGETARY AND ACCOUNTING ENTRIES
It is recommended that the City Council open a Public Hearing, receive testimony and consider adoption of Resolution 25-10

DISCUSSION

1. CONSIDERATION OF RESOLUTIONS 25-06 ESTABLISHING A LEGISLATIVE

ADVOCACY POLICY AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO

TAKE POLICY POSITIONS ON PENDING STATE OR FEDERAL LEGISLATION OR

REGULATION
It is recommended that the City Council adopt Resolution 25-06.

ACTION ITEMS
Regardless of staff recommendation on any agenda item, the City Council will consider such matters, including action to approve, conditionally approve, reject, or continue such item.

PUBLIC HEARING
The appellant and/or applicant will each be provided a total of ten (10) minutes to address their item. A portion of their allotted time may be reserved for rebuttal or a summary conclusion at the close of public comment. All other speakers will be limited to a total of three continuous minutes, which cannot be delegated. These rules will be enforced but may be changed by appropriate City Council action.

AVAILABILITY OF AGENDA MATERIALS
Materials related to items on this agenda are available for public inspection on the City’s website at www.cityofsierramadre.com.

LIVE BROADCASTS
Regular City Council meetings are broadcast live on Cable Channel 3 and rebroadcast on Wednesday and Saturday at 5:30 p.m.

MEETING ASSISTANCE
If you require special assistance to participate in this meeting, please call the City Clerk’s office at (626) 355-7135 at least 48 hours prior to the meeting.

ADJOURNMENT
The City Council will adjourn to a meeting to take place on February 11, 2025.

FOR CITY COUNCIL AGENDA ITEM NUMBER______

City of Sierra Madre
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Arnulfo Yanez, Director of Public Works
REVIEWED BY: Jose Reynoso, City Manager
DATE: January 28, 2025
SUBJECT: RECOMMENDATION TO GRANT AN EASEMENT TO SOUTHERN

CALIFORNIA EDISON TO CONSTRUCT NEW ANCHORS AT TRACT
2456 ASSESSOR PARCEL NUMBER 5764-025-902. A CITY-OWNED
PROPERTY AT 530 ALTA VISTA DRIVE.

STAFF RECOMMENDATION
Staff recommends that the City Council approve Exhibit “A” and “B” documents and grant Southern California Edison an easement for installing new anchors.

ALTERNATIVES

1. The City Council may approve the grant of an easement to Southern California Edison to install new anchors.

2. The City Council may not approve the grant of the easement to Southern California Edison and provide staff with further direction.

SUMMARY
The City of Sierra Madre has reviewed a request to grant an easement to Southern California Edison Company (SCE) to facilitate the construction, use, maintenance, operation, alteration, addition, repair, replacement, inspection, relocation, and/or removal of utility infrastructure. This includes stub poles, guywires, anchors, and associated equipment. The easement also grants SCE unrestricted access to the facilities for ongoing maintenance and operation.

Public Works staff has reviewed the request from Southern California Edison for the grant Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Kelly Kriebs, Council Member
Gene Goss, Council Member
Edward Garcia, Council Member
Sue Spears, City Treasurer
of easement and approves the location and alignment of the proposed new anchors will not cause interference.

ANALYSIS
Public Works staff has reviewed the request from Southern California Edison for the grant of easement and is comfortable that the location and alignment of the proposed new anchors will not cause interference
 Property Information: The easement is at 530 Alta Vista Drive, APN 5764-025-902, situated in Lot 420 of Tract No. 2456, located in the City of Sierra Madre, Los Angeles County, California.

Owned by the City of Sierra Madre.
 Easement Dimensions:
o Strip 1: A 4-foot-wide strip of land, approximately 21.53 feet in length, running along specific coordinates from the northwestern corner of Lot 420. o Strip 2: A 4-foot-wide strip, extending 7 feet from a designated point of commencement.
o The precise locations and dimensions are detailed in Exhibits A and B, which include legal descriptions and survey diagrams.
 Value and Consideration: The value of the easement is less than $100, and the document indicates that no documentary transfer tax is applied. The granting of this easement allows SCE to carry out critical utility infrastructure activities, which are essential for providing and maintaining electrical services. The specified equipment (stub poles, guy-wires, and anchors) supports the safety, reliability, and efficiency of electrical distribution in the region.  2. Minimal Property Impact
Based on the details provided, the easement affects two narrow strips of land (4 feet wide each) on a defined portion of Lot 420. The limited size and scope of the affected areas suggest minimal disruption to other potential uses of the property. Additionally, the exhibits demonstrate that the infrastructure will be confined to clearly defined boundaries.  3. Cost and Transfer Value
The consideration for the easement is nominal, and SCE appears to assume responsibility for the associated construction and maintenance. This ensures no financial burden on the City of Sierra Madre for granting the easement.
 4. Compliance with Legal and Administrative Standards The agreement includes legal descriptions and surveys (Exhibits A and B) that meet standard easement documentation practices. Furthermore, it is subject to any existing covenants, conditions, and reservations tied to the property, ensuring compliance with applicable regulations.

FINANCIAL REVIEW / SOURCE OF FUNDING
The grant of this easement to Southern California Edison (SCE) has no direct financial impact on the City of Sierra Madre. The value of the easement is nominal, as it involves two narrow strips of land (4 feet wide each) on City-owned property at 530 Alta Vista Drive (APN 5764-025-902).

SCE will assume all costs associated with the construction, maintenance, operation, and any future modifications to the utility infrastructure on the easement. No documentary transfer tax is applied to this transaction, and the City is not responsible for any expenses related to the easement or the infrastructure improvements.

The grant of this easement ensures that SCE can continue to provide safe and reliable electrical services to the region without imposing any financial burden on the City.

PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process. Copies of this report are available at the City Hall public counter and at the Sierra Madre Public Library and can be accessed on the City’s website at www.cityofsierramadre.com.

ATTACHMENTS
 Proposed Easement Grant Deed
 Exhibits A and B

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TO: Honorable Mayor Parkhurst and Members of the City Council FROM: Anthony Rainey, Finance Director
REVIEWED BY: Jose Reynoso
DATE: January 28, 2025
SUBJECT: RECEIVE AND FILE THE ANNUAL COMPREHENSIVE

FINANCIAL REPORT (ACFR), AUDITOR'S REPORT, AND

ASSOCIATED REPORTS FOR THE FISCAL YEAR
ENDED JUNE 30, 2024

STAFF RECOMMENDATION
It is recommended that the City Council receive and file the ACFR, along with the accompanying Auditor’s Report on Internal Controls and Compliance and SAS 114 Letter for the Fiscal Year ended June 30, 2024. This action formally acknowledges the completion of these reports and their availability for public review.

ALTERNATIVES
The City Council could elect not to accept the FY 2024 ACFR. This decision may require additional fieldwork from Rogers, Anderson, Malody & Scott LLP to comply with auditing guidelines, which mandate timely publication of financial reports after audit fieldwork.

Failure to approve the audited financial statements would also violate state-mandated submittal deadlines.

EXECUTIVE SUMMARY
The Fiscal Year (FY) 2024 ACFR – Attachment 1 - has been prepared by City staff and audited by Rogers, Anderson, Malody & Scott LLP (RAMS). The independent auditors issued an unmodified opinion, meaning the financial statements are accurate, complete, and comply with accounting standards. This opinion assures the public and Council of the City’s transparency and sound financial management.

City of Sierra Madre

AGENDA REPORT
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Edward Garcia, Council Member
Gene Goss, Council Member
Kelly Kriebs, Council Member
Sue Spears, City Treasurer
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The accompanying reports — Auditor’s Report on Internal Controls and Compliance 2023 2024 - Attachment 2 - and SAS 114 - Required Communication with Those Charged with Governance – Statement on Auditing Standards - Attachment 3 —provide further insights into the City’s financial practices, compliance, and adherence to constitutional requirements. The SAS 114 Letter, as required by the American Institute of Certified Public Accountants (AICPA), ensures transparent communication between auditors and those charged with governance regarding the audit’s scope, significant findings, and any challenges encountered.

ANALYSIS

FUND TYPES AND KEY TERMINOLOGY
The City utilizes several fund types, each serving a unique purpose in tracking and managing financial resources. Additionally, key terms such as Fund Balance and Net Position are critical in assessing fiscal health.
 Fund Balance: Represents the difference between assets and liabilities in governmental funds. It is an indicator of available resources for future use. Fund balance is divided into categories such as:
o Unassigned: Resources available for any purpose.
o Restricted: Resources constrained by external laws or agreements. o Committed: Funds set aside by the City Council for specific uses. o Non-Spendable: Items like prepaids that cannot be converted to cash.  Net Position: Reflects the overall financial position of proprietary funds, including investments in capital assets and unrestricted resources.

Fund Types:
 Governmental Funds: Used to account for activities primarily supported by taxes, grants, and similar revenue sources. These include:
o General Fund: The primary operating fund for general municipal activities not accounted for in other funds.
o Special Revenue Funds: Restricted for specific purposes, such as public safety or road maintenance.
o Debt Service Funds: Used to account for resources set aside to pay interest and principal on long-term debt.
o Capital Projects Funds: Used to account for resources used for major capital asset acquisition or construction.
 Proprietary Funds: Used to account for activities that operate similarly to private businesses, where services are funded through user charges. These include:
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o Enterprise Funds: Account for operations like utilities (e.g., water, sewer) that are financed through user fees.
o Internal Service Funds: Account for services provided internally between departments, such as fleet management or IT.
 Fiduciary Funds: Used to account for resources held by the City in a trustee or custodial capacity for others. These funds are not available to support the City’s own programs.

ATTACHMENT 1 - ACFR
The Annual Comprehensive Financial Report (ACFR) is a detailed presentation of the City’s financial condition as of June 30, 2024. An ACFR is a set of government financial statements comprising the financial report of the City that complies with the accounting requirements (i.e., Generally Accepted Accounting Principles (GAAP)), created and circulated by the Governmental Accounting Standards Board (GASB). It provides critical information for understanding the City’s fiscal health and includes the following sections:
 Management’s Discussion and Analysis (MD&A).
 Audited Financial Statements.
 Notes to the Financial Statements.
 Supplementary and Statistical Information.

MANAGEMENT’S DISCUSSION AND ANALYSIS
Overview of the Management’s Discussion and Analysis (MD&A): The Management’s Discussion and Analysis (MD&A) is a key component of the Annual Comprehensive Financial Report (ACFR) that provides an executive summary of the City’s financial performance for the fiscal year. Its purpose is to assist readers in understanding the financial statements by highlighting key trends, explaining significant changes in the City’s financial position, and offering context for revenues, expenses, and fund balances. By bridging the gap between complex financial data and actionable insights, the MD&A ensures transparency and supports informed decision-making for City Council, residents, and stakeholders. Below is a summary of key financial data from the FY 2023/2024 ACFR. Each table is referenced by its number and page for clarity, providing an overview of trends and their implications for the City’s finances.

Table 1: Condensed Statement of Net Position (Page 9)
 Overview: This table provides a snapshot of the City's financial position, including assets, liabilities, and net position for both governmental and business-type activities.  Results: The City’s overall net position growth signals fiscal health and resilience, with sufficient capacity to manage unforeseen challenges.

Table 2: Condensed Statement of Activities (Page 10)
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 Overview: This table summarizes revenues, expenses, and changes in net position for governmental and business-type activities.
 Results: The net positive change in position across all activities reflects effective budget management and financial sustainability.

Table 3: Net Cost of Governmental Activities (Page 11)
 Overview: This table details program expenses and the extent to which they are funded by program-generated revenues (e.g., charges for services, grants).  Results: The City's ability to cover these costs through external revenues and taxes demonstrates prudent fiscal planning and operational efficiency.

Table 4: Condensed Statement of Revenues, Expenditures, and Changes in Fund Balance (Page 11)
 Overview: This table outlines changes in fund balances for all governmental funds.  Results: The growth in fund balances strengthens the City’s capacity to fund future operations and infrastructure improvements.

Table 4-a: Fund Balances for the General Fund (Page 12)  Overview: This table breaks down the General Fund balance into specific categories (e.g., restricted, committed, and unassigned).
 Results: A healthy General Fund balance reinforces the City’s ability to respond to emergencies and support long-term planning.

Table 5: Statement of Revenues, Expenses, and Changes in Net Position (Page 13)  Overview: This table focuses on the performance of business-type activities such as water and sewer services.
 Results: The positive performance of enterprise funds supports continued investment in utility infrastructure and operational sustainability.

Table 6: Capital Assets and Intangible Assets (Net of Depreciation and Amortization) (Page 13)
 Overview: This table highlights changes in the City’s capital assets and long-term infrastructure investments.
 Results: Strategic investments in infrastructure strengthen the City’s ability to deliver essential services and meet future demands.

Summary of Trends and Results
 Revenue Growth: Total revenues increased across governmental and business-type activities.
 Expenditure Stability: Expenditures increased modestly.  Fund and Net Position Growth: Both governmental fund balances and net positions for business-type activities grew, reflecting strong financial health and resource allocation. 279687.v2
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 Infrastructure Investments: Significant progress in infrastructure projects, particularly in water and sewer utilities, demonstrates a focus on long-term sustainability.

NOTES TO BASIC FINANCIAL STATEMENTS
The Notes to Basic Financial Statements provide detailed explanations of the financial data presented in the ACFR. They include significant accounting policies, details of long-term liabilities, pension and OPEB obligations, and explanations for variances.

These notes ensure transparency and provide essential context for understanding the financial statements.

OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Other Post-Employment Benefits (OPEB) refer to benefits other than pensions that are provided to retired employees. These typically include healthcare, dental, vision, life insurance, and other similar benefits. OPEB obligations represent the City’s future liabilities to provide these benefits to current and future retirees. In the ACFR, the City’s OPEB liabilities and funding status are detailed in the Notes to Basic Financial Statements. This section outlines the actuarial assumptions, contribution strategies, and unfunded liabilities associated with OPEB. Proper management of OPEB liabilities is essential for ensuring long-term fiscal health and sustainability (Page 48-52).

REQUIRED SUPPLEMENTARY INFORMATION
The Required Supplementary Information (RSI) section provides additional context to support the financial statements. This includes budgetary comparisons for the General Fund, information about the City’s pension plans, and disclosures regarding other postemployment benefits (OPEB). RSI helps stakeholders assess compliance with adopted budgets and long-term financial commitments.

INTEGRATING AUDITED FUND BALANCES AND NET POSITIONS INTO THE

FINANCIAL SYSTEM
The audited Ending Fund Balances and Ending Net Positions for FY 2023/2024 will be incorporated into the Tyler Technologies Financial System as the Beginning Fund Balances and Beginning Net Positions for FY 2024/2025. This process ensures continuity and accuracy in financial reporting and aligns with best practices for government financial management. Relevant information for fund balances and net positions can be found throughout Pages 19-24 of the ACFR.

ATTACHMENT 2 - AUDITOR’S REPORT ON INTERNAL CONTROLS AND COMPLIANCE 2023 2024
The Auditor's Report on Internal Controls and Compliance is a required component of the audit process under Government Auditing Standards. Its primary purpose is to provide City Council and stakeholders with an assessment of the effectiveness of the City's internal controls over financial reporting and compliance with applicable laws, 279687.v2
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regulations, and agreements. The report ensures transparency by identifying deficiencies, if any, and offering recommendations for improvement. This report indicates that, while the City maintains strong internal controls overall, addressing one noted deficiency will enhance financial accuracy and ensure smoother audits in the future. The absence of material weaknesses or compliance issues reflects the City's commitment to sound financial management practices.

ATTACHMENT 3 - SAS 114 - REQUIRED COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE – STATEMENT ON AUDITING STANDARDS The SAS 114 Report, formally titled Required Communication with Those Charged with Governance – Statement on Auditing Standards 114, serves to inform the City Council and management about the responsibilities, findings, and outcomes of the external audit of the City of Sierra Madre's financial statements for the fiscal year ending June 30, 2024. It highlights key aspects of the audit, including the scope, significant risks, qualitative assessments, and any issues encountered during the process. This report is a critical tool for maintaining transparency and ensuring that those charged with governance are fully informed about the audit process and results. This report concludes that the City of Sierra Madre has maintained a sound financial position with no significant issues identified during the audit. It reinforces the City’s commitment to transparency, compliance, and strong fiscal management practices

CONCLUSION
The audited financial statements and accompanying reports demonstrate that the City of Sierra Madre has maintained a stable and responsible financial position for FY 2023/2024. Prudent fiscal management, strategic investments in infrastructure, and effective budgetary controls have contributed to growth in net position and a healthy financial outlook. The ACFR reflects the City’s commitment to transparency, accountability, and long-term sustainability.

ENVIRONMENTAL (CEQA)
This agenda item, which involves the review and acceptance of the Annual Comprehensive Financial Report (ACFR) and related audit reports, does not constitute a project under the California Environmental Quality Act (CEQA). As such, it has no potential to result in a direct or indirect physical impact on the environment and is therefore exempt from CEQA requirements.

STRATEGIC PLAN CORRELATION
Not applicable.

FISCAL IMPACT
The acceptance of the Annual Comprehensive Financial Report (ACFR) has no direct fiscal impact. However, it provides a transparent and comprehensive summary of the 279687.v2
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City's financial position and results of operations, which are critical for informed decision-making regarding future fiscal planning, resource allocation, and budgetary priorities. Addressing identified audit findings, such as year-end reconciliation improvements, may require minor administrative adjustments.

PUBLIC NOTICE
This item has been noticed through the regular agenda notification process. Copies of this report can be accessed on the City’s website at www.cityofsierramadre.com.

ATTACHMENTS:

1. Annual Comprehensive Financial Report (ACFR)

2. Auditor’s Report on Internal Controls and Compliance 2023 2024

3. SAS 114 - Required Communication with Those Charged with Governance – Statement on Auditing Standards.

Annual Comprehensive Financial Report
City of Sierra Madre, California
Village of the Foothills
For the Year Ended June 30, 2024
Prepared by the Finance Department Staff
City of Sierra Madre
232 West Sierra Madre Boulevard
Sierra Madre, CA 91024

INTRODUCTORY SECTION (UNAUDITED)
LETTER OF TRANSMITTAL i

GFOA CERTIFICATE OF ACHIEVEMENT XIV
ORGANIZATIONAL CHART xv
ELECTED OFFICIALS AND EXECUTIVE MANAGEMENT xvi

FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS
(REQUIRED SUPPLEMENTARY INFORMATION) (UNAUDITED) 4
BASIC FINANCIAL STATEMENTS:

GOVERNMENT‐WIDE FINANCIAL STATEMENTS:

STATEMENT OF NET POSITION 16
STATEMENT OF ACTIVITIES 17
FUND FINANCIAL STATEMENTS:

GOVERNMENTAL FUNDS:

BALANCE SHEET 19

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT‐WIDE STATEMENT OF NET POSITION 20

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 21

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENT‐WIDE STATEMENT OF ACTIVITIES 22
PROPRIETARY FUNDS:

STATEMENT OF FUND NET POSITION 23
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 24 STATEMENT OF CASH FLOWS 25
NOTES TO BASIC FINANCIAL STATEMENTS 27
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED):

BUDGETS AND BUDGETARY ACCOUNTING 61
GENERAL FUND BUDGETARY COMPARISON SCHEDULE 62
TARGET STATE GRANT LIBRARY BUDGETARY COMPARISON SCHEDULE 63 AMERICAN RESCUE PLAN ACT BUDGETARY COMPARISON SCHEDULE– 64 DEFINED BENEFIT PENSION PLAN 65
OTHER POST‐EMPLOYMENT BENEFITS 67
SUPPLEMENTARY INFORMATION:

NON‐MAJOR GOVERNMENTAL FUNDS BY FUND TYPE:

COMBINED BALANCE SHEET 69

COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 70
NON‐MAJOR SPECIAL REVENUE FUNDS:

COMBINING BALANCE SHEET 71

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 72

FINANCIAL SECTION (CONTINUED)
NON‐MAJOR SPECIAL REVENUE FUNDS ‐ GRANTS:

COMBINING BALANCE SHEET 73

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 74
NON‐MAJOR SPECIAL REVENUE FUNDS ‐ ASSESSMENTS:

COMBINING BALANCE SHEET 75

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 77
NON‐MAJOR SPECIAL REVENUE FUNDS ‐ OTHER:

COMBINING BALANCE SHEET 79

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 85
NON‐MAJOR CAPITAL PROJECT FUNDS:

COMBINING BALANCE SHEET 91

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 91
NON‐MAJOR SPECIAL REVENUE FUNDS:

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

LIBRARY GRANT SPECIAL REVENUE FUND 93
BONITA SEWER ASSESSMENT DISTRICT FUND SPECIAL REVENUE FUND 94 LIGHTING DISTRICT #1 SPECIAL REVENUE FUND 95
SEWER ASSESSMENT DISTRICT SPECIAL REVENUE FUND 96
SIERRA MADRE CFD SPECIAL REVENUE FUND 97
DOWNTOWN LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT 98 DEVELOPMENT IMPACT FEES SPECIAL REVENUE FUND 99
POLICE DEPARTMENT DONATIONS SPECIAL REVENUE FUND 100
PUBLIC SAFETY AUGMENTATION SPECIAL REVENUE FUND 101
STATE COPS GRANT SPECIAL REVENUE FUND 102
FIRE DEPARTMENT DONATIONS SPECIAL REVENUE FUND 103
LOCAL TRANSPORTATION PROP A SPECIAL REVENUE FUND 104
OPEN SPACE SPECIAL REVENUE FUND 105
SENIOR CENTER SPECIAL REVENUE FUND 106
LOCAL TRANSIT PROP C SPECIAL REVENUE FUND 107
CLEAR AIR (AQMD) SPECIAL REVENUE FUND 108
ENVIRONMENTAL SPECIAL REVENUE FUND 109
GAS TAX SPECIAL REVENUE FUND 110
MEASURE R SPECIAL REVENUE FUND 111
MEASURE M SPECIAL REVENUE FUND 112
ROAD MAINTENANCE REHABILITATION SPECIAL REVENUE FUND 113 LIBRARY GIFT AND MEMORIAL SPECIAL REVENUE FUND 114
FRIENDS OF THE LIBRARY SPECIAL REVENUE FUND 115
MEASURE W SPECIAL REVENUE FUND 116
ROBERT DAY TRUST FUND SPECIAL REVENUE FUND 117
CAL ENERGY GRANT FUND SPECIAL REVENUE FUND 118
OTHER NON‐MAJOR FUNDS:

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

CAPITAL PROJECTS FUND 119

FINANCIAL SECTION (CONTINUED)
INTERNAL SERVICE FUNDS:

COMBINING STATEMENT OF NET POSITION 120
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 122 COMBINING STATEMENT OF CASH FLOWS 124

STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT 127
CHANGES IN NET POSITION 129
FUND BALANCES OF GOVERNMENTAL FUNDS 133
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 135
ASSESSED VALUE OF TAXABLE PROPERTY 137
PROPERTY TAX RATES ‐ DIRECT & OVERLAPPING PROPERTY TAX RATES 139 PRINCIPAL PROPERTY TAXPAYERS 141
PROPERTY TAX LEVIES AND COLLECTIONS 142
TOTAL DIRECT AND OVERLAPPING DEBT 143
OUTSTANDING DEBT BY TYPE 144
PLEDGED REVENUE COVERAGE 146
DEMOGRAPHIC AND ECONOMIC STATISTICS 148
TOP 25 SALES TAX PRODUCERS 149
FULL‐TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION 150 OPERATING INDICATORS BY FUNCTION 151
CAPITAL ASSETS – BOOK VALUE 153
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‐xiv‐
‐xv‐

CITY OF SIERRA MADRE
Organizational Structure
As of June 30, 2024

CITY COUNCIL CITY TREASURER
City Manager City
Attorney
Finance
Administrative
Services
Community Services
Human Resources Fire
Information Technology
Services Library Services
Planning & Community
Preservation Police
Utilities Public Works
City
Clerk
‐xvi‐
City of Sierra Madre, California
Village of the Foothills
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Sierra Madre, California
City Council and Elected Officials
As of June 30, 2024
Kelly Kriebs Mayor
Robert Parkhurst Mayor Pro Tempore
Kristine Lowe Council Member
Gene Goss Council Member
Edward Garcia Council Member
Laura Aguilar City Clerk
Michael Amerio City Treasurer
Executive Management
Jose Reynoso City Manager
Aleks Giragosian City Attorney
Miguel Hernandez Assistant City Manager
Laura Aguilar Deputy City Manager
Anthony Rainey Finance Director
Clare Lin Acting Planning Director
Brent Bartlett Fire Chief
Ted Tegart Community Services Manager
Leila Regan City Librarian
Gustavo Barrientos Police Chief
Arnulfo Yanez Director of Public Works
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735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
‐1‐
Independent Auditor's Report
To the Honorable Mayor and Members of City Council
City of Sierra Madre, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business‐type activities, each major fund, and the aggregate remaining fund information of the City of Sierra Madre, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business‐type activities, each majorfund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flowsthereof 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 (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s 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 isresponsible 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 statementsthat are free from material misstatement, whether due to fraud or error. ‐2‐
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.

Auditor’s 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 auditor’s 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information, aslisted in the table of contents, be presented to supplement the basic financialstatements.Such information isthe 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.

‐3‐
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 supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is 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 accompanying supplementary information is 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 comprehensive financial report (ACFR).

The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
December 20, 2024
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City of Sierra Madre, California
Village of the Foothills

Management’s Discussion and Analysis
For the Year Ended
June 30, 2024
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CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐4‐
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Sierra Madre (“City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i‐xiii of this report.

FINANCIAL HIGHLIGHTS
 At June 30, 2024, the City’s net position was $246M, reflecting a $5.1M increase compared to FY 2022‐2023. This growth resulted from an increase in cash and investments due to $4 million received from the Targeted State Library Grant and higher interest earned on City’s LAIF investment. The net position is composed of: a) Net Investment in Capital Assets at $211.0M, b) Restricted Net Position at $9.4M, and c) Unrestricted Net Position at $25.8M.  During FY 2023‐2024, the City’s General Fund fund balance increased by $2.6 million, the American Rescue Plan Act (ARPA) Fund balance increased by $69,000 , the Targeted State Grant Library Fund increased by $272,000, and  Non‐Major Governmental fund balance increased by $1 million. The City allotted $442,481 to a Section 115 Trust for long‐term pension obligations, reflecting its commitment to financial sustainability.  The increase in the General Fund was driven by an increase in investment income, and property taxes and other taxes.
 The General Fund had an adopted expenditure budget of $15.6M, which reflects the original spending plan approved at the start of the fiscal year.
 In the City’s proprietary funds: The Water Fund net position increased by $2.0M and the Sewer Fund increased by $36,000.

OVERVIEW OF FINANCIAL STATEMENTS
The discussion and analysis provided here are intended to serve as an introduction to the City of Sierra Madre’s basic financial statements. The City’s basic financial statements consist of three components: (1) government‐wide financial statements, (2) fund financial statements, and (3) the notes to the basic financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐5‐
Government‐Wide Financial Statements
The government‐wide financial statements are designed to provide readers with a broad overview of the City of Sierra Madre’s finances, in a manner similar to the private sector business. These statements are designed to provide information about the activities of the City as a whole and present a longer‐term view of the City’s finances. The statements are prepared using the accrual basis of accounting which considers money available when earned and considers money spent when a liability is incurred. As such, this basis of accounting focuses on measuring economic resources that are available to the City regardless of the timing of the availability of those resources. The accrual basis of accounting is similar to that used by most private sector companies.

Accordingly, all of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, these statements reflect the capitalization and depreciation of infrastructure and other capital assets(e.g., buildings, vehicles, and equipment, etc.) as well asthe recognition of variouslong‐term liabilities(e.g., bonds payable, accrued employee benefits, claims and judgments payable, etc.).

The statement of net position presents information on all the City’s assets, liabilities, and deferred inflows/outflows of resources. The difference between assets plus deferred outflows of resources, and liabilities and deferred inflows of resourcesisreported as net position. Thisstatement includes changesin capitalized and depreciated capital assets. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

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

The government‐wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business‐type activities). The governmental activities of the City include general government, public safety (police and fire protection), public works, development services, and culture and recreation (community and library services). The City's business‐type activities include the Municipal Utility operations and other self‐supporting activities.

The government‐wide financial statements include the City and its component units. As stated in Note 1A of the notes to the financial statements, the inclusion of an organization within the scope of the reporting entity of the City of Sierra Madre, as either blended or separately shown, is based on the provisions of GASB Statement No. 14 the Financial Reporting Entity.

The government‐wide financial statements can be found on pages 16 through 18 of this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The fund financial statements provide detailed information about the most significant funds and other funds – not the City as a whole. Some funds are required by state law and by bond covenants. In addition, in order to meet legal responsibilities for using certain taxes, grants, and other resources, prudent fiscal management requires the establishment of other funds to help control and manage money. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. The basic fund financial statements can be found on pages 19 through 26 of this report.

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐6‐
By contrast to the government‐wide financial statements, the governmental fund financial statements, a part of the Fund Financial Statements, use the modified accrual basis of accounting which considers money available when it is collectible within the current period orsoon enough thereafter (60 days after the end of the current fiscal period, except for expenditure driven grants) to pay liabilities of the current period. Expenses are recorded when a liability is incurred.

Debt service, claims and judgments, and accrued employee leave benefits are not recorded as liabilities, they are expensed at the time a payment is due. Note 1 of the notes to the Financial Statements more fully describes each basis of accounting.

Governmental funds: Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year‐end that are available for spending. The governmental fund financial statements provide a detailed short‐term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences between the results in the governmental fund financial statements and those in the government‐wide financial statements are explained in a reconciliation following each governmental fund financial statement.

The City maintains 39 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund which is considered to be a major fund. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non‐major governmental funds are provided in the form of combining statements in the Supplementary Information.

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided to demonstrate compliance with this budget. This comparison can be found on page 62 of this report.

Although legally separate, component unitsfunction for all practical purposes as departments of the City and, therefore, have been blended as part of the primary government.

Proprietary funds: When the City charges customers’ fees to cover the cost of the services it provides; these services are generally reported in proprietary funds. The City maintainstwo different types of proprietary funds: enterprise funds and internal service funds. In the fund financial statements section, proprietary funds provide similar information to that contained in the business‐type activities in the government‐wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages 23 through 26 of this report.

Enterprise refers to the fund type while business‐type refers to the activity type. The City uses enterprise funds to account for its Water Utility and Sewer Utility, both of which are major funds; and various smaller self‐supporting community operations, which are shown in aggregate titled Non‐Major Enterprise Funds. Enterprise funds are used to report the same functions presented as Business‐Type activities in the government‐wide financial statements.

Internal Service funds by contrast are an accounting mechanism used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for Vehicle/Equipment Replacement and Maintenance, Facilities Maintenance, City Administration, and Information Technology (IT), Personnel/Risk Management, and General Plan/Housing Update. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Internal Service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting. However, because these services predominantly involve governmentalratherthan business‐ type activities, this fund type has been included within Governmental Activities in the government‐wide financial statements.

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐7‐
Notes to the Financial Statements
The notes provide additional information that is essential to obtain a full understanding of the data provided in the government‐wide and fund financial statements. The notes to the financial statements begin on page 27 of this report.

Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budgetary information and compliance; Schedule of the City’s Proportionate Share of the Plan’s Net Pension Liability and Related Ratios, Schedule of Plan Contributions, and Schedule of Changes in the Net OPEB Liability and Related Ratios, and the Schedule of OPEB Contributions. Required supplementary information can be found on pages 61 through 68 of this report.

The combining statements referred to earlier in connection with non‐major governmental funds, enterprise funds, and internal service funds are presented immediately following the required supplementary information captioned supplementary schedules. Combining and individual fund statements and schedules can be found on pages 69 through 125 of this report.

THE CITY AS A WHOLE
Government‐Wide Financial Statements
The government‐wide financialstatements are designed to provide readers with a broad overview of the City’sfinances, in a manner similar to private‐sector business.

The Statement of Net Position and the Statement of Activities As noted earlier, the Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statementsinclude all assets, liabilities, and deferred outflows/inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private‐sector companies.

These two statements report the City’s net position and changes in them. Net position is the difference between assets, liabilities, and deferred outflows/inflows ofresources, which is one way to measure the City’sfinancial health orfinancial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Other factors to consider are changes in the City’s property tax base and the condition of the City’s infrastructure, such as City wells and reservoirs construction/replacements, street maintenance/repairs, and building maintenance/improvements.

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐8‐
In the Statement of Net Position and the Statement of Activities, City activities are separated as follows:

Governmental activities – The majority of the City’s basic services are reported in this category, including Administrative Services, Police, Fire, Public Works, Planning and Development Services, Parks and Recreation, and the Library. Revenues such as property taxes, sales taxes, utility user taxes, franchise fees, and other state and federal funds finance these activities.

Business‐type activities – The City charges a fee to customers to cover the services it provides within this category. The City’s water system, sewer system, and community operations are reported in this category.

Government‐Wide Financial Analysis
Our analysis focuses on the City’s net position (Table 1) and the changes in net position (Table 2) as a result of the City’s activities. Comparative total data for the prior year have been presented. An analysis of the significant increases/decreases from the prior year is provided before each table.

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CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐9‐
Net Position: Net Position, the difference between a government’s assets plus deferred outflows of resources and liabilities and deferred inflows of resources, may serve over time as one potential useful indicator of a government’s financial position (Table 1). Net Position includes the City’s capital assets, cash balances, amounts receivable from other entities, and other similar resources offset by payments due to vendors, interest payable, long‐term debt, and other similar obligations. By far the largest portion of the City’s net position (86%) reflects its investment in capital assets (e.g. land, buildings, utility plant, machinery, equipment, and infrastructure), net of any related outstanding debt, used to acquire those assets. The City uses these assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

In the case of the City, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $246 million at the close of the most recent fiscal year as compared to the net position of $241 million in fiscal year 2022‐23.

Table 1
Condensed Statement of Net Position
June 30, 2023 and 2024
(in thousands)
2023 2024 2023 2024 2023 2024
As se ts
Current and other a s se ts 32,021 $    $   39,028 12,054 $ $   12,932 44,075 $    $   51,960 Noncurrent a s se ts 1,500         1,500           ‐ ‐                         1,500 1,500 Capi tal a s se ts, ne t 185,294     186,460 31,400     31,662 216,694     218,122 Total a s se ts 218,815     226,988 43,454     44,594 262,269     271,582 De ferred outflows of res ources 9,263         7,359 493          389 9,756         7,748 Liabili ties
Current and other liabili ties 9,663         12,337 1,672       1,518 11,335       13,855 Noncurrent liabili ties 8,660         10,202 7,650       6,819 16,310       17,021 Total liabili ties 18,323       22,539 9,322       8,337 27,645       30,876 De ferred inflows of res ources 3,065         2,043 148          115 3,213         2,158 Net posi tion:

Net inves tment in capi tal a s se ts 185,245     186,427 23,997     24,634 209,242     211,061 Res tricted 8,132         9,351 49            53 8,181         9,404 Unres tricted 13,313       13,987 10,431     11,844 23,744       25,831 Total net posi tion 206,690 $ $   209,765 34,477 $ $   36,531 241,167 $ $   246,296 Governmental activi ties Busi nes s‐type activi ties Total

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐10‐
Statement of Activities and Changes in Net Position: Program expenses by function, general revenues by major source, excess and/or deficiency of revenues over expenses before transfers, changes in and total net position are presented in the Statement of Activities (Table 2). Total revenues increased by approximately $4.5 million, and total expenses decreased by $3.5 million.

Table 2
Condensed Statement of Activities
For the years ended June 30, 2023 and 2024
(in thousands)
2023 2024 2023 2024 2023 2024
Revenues:

Program revenues
Cha rges for se rvices 2,932 $       $   3,258 7,645 $     $   7,951 10,577 $         $   11,209 Opera ting gra nts and contri butions 2,390          3,824            ‐ ‐                          2,390 3,824 Gene ral revenues
Taxes 13,647        14,168            ‐ ‐                        13,647 14,168 Inves tment income 261             1,631 98             411 359                 2,042 Mi scella neous 259             503 82             74 341                 577 Total revenues 19,489        23,384 7,825        8,436 27,314            31,820 Expenses:

Gene ral gove rnment 5,545          3,689            ‐ ‐                          5,545 3,689 Publi c sa fe ty 8,085          8,788            ‐ ‐                          8,085 8,788 Publi c works 3,748          4,316            ‐ ‐                          3,748 4,316 Development services 2,384          1,824            ‐ ‐                          2,384 1,824 Cul ture and recrea tion 2,986          1,667            ‐ ‐                          2,986 1,667 Interes t             ‐ 1            ‐ ‐              ‐                  1 Wa te r              ‐ ‐                       5,155 5,116 5,155              5,116 Sewer              ‐ ‐                       1,305 1,289 1,305              1,289 Total expenses 22,748        20,285 6,460        6,405 29,208            26,690 Change in net posi tion
be fore trans fers (3,259)         3,099 1,365        2,031 (1,894)             5,130 Tra ns fe rs (22)              (22) 22             22                  ‐ ‐ Change in net posi tion (3,281)         3,077 1,387        2,053 (1,894)             5,130 Net posi tion, beginning of yea r, as res ta ted     209,971 206,690 33,090      34,478 243,061          241,168 Net posi tion, end of yea r 206,690 $   $   209,767 34,477 $   $   36,531 241,167 $       $   246,298 Gove rnmental a ctivi ties
Business‐type
activi ties Total

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐11‐
Governmental Activities: The following (Table 3) presents the cost of each of the City’s largest programs – general government, public safety, public works, community development and culture and recreation, – and in addition, each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions (excludes interest expense and includes the change in Net Pension Liability):

Table 3
Net Cost of Governmental Activities
For the year ended June 30, 2024
(in thousands)
Total cost of
services
Total program
revenues
Net cost of
services
General government $              3,689 $              1,416 (2,273) $ Public safety 8,788 1,032 (7,756)
Public works 4,316 3,406 (910)
Development services 1,824 296 (1528)
Culture and recreation 1,667 931 (736)
Totals $          20,284 $          7,081 (13,203) $
THE CITY’S FUNDS
Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The following financial analysis is performed only for the governmental (Table 4) and proprietary funds (Table 5). The fiduciary funds are excluded from this analysis as they do not represent resources available to the City.

Table 4
Condensed Statement of Revenues, Expenditures and Changes in Fund Balance For the years ended June 30, 2023 and 2024
(in thousands)
2023 2024 2023 2024 2023 2024 2023 2024
Gene ral Fund 16,684 $ $   18,717 14,384 $ $   15,404 (290) $      $     (684) $   2,010 $   2,629 Ta rge t Sta te Gra nt Li bra ry 87            1,060 64            788           ‐ ‐                     23 272 Ame rica n Rescue Pla n Act 94            770 49            701           ‐ ‐                     45 69 Othe r governmental funds 2,604       2,953 2,054       2,586 294          662 844          1,029 Total s 19,469 $ $   23,500 16,551 $ $   19,479 4 $           ‐$   22 2,922 $    $   3,999 Revenues Expendi tures Tra ns fers
Net change in fund
bala nce

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐12‐
Governmental Funds: Based on the audited Statement of Revenues, Expenditures and Changes in Fund Balance, the total fund balance of the City’s General Fund increased by approximately $2.6 million in FY 2023‐24. General Fund revenues increased by approximately $2.0 million, or 12.2 percent from prior year; expenditures increased by approximately $1.0 million, and net transfers out increased by approximately $394 thousand.

The increase in General Fund balance during FY 23‐24 was primarily due to an increase in revenue projected and decrease in expenditures projected. Key contributing factors include:

1. Investment Income (+$942,338): The largest contributor to the fund balance increase was investment income, which rose significantly due to higher prevailing interest rates on LAIF and other investments.

2. Property Tax Revenue (+$427,483): Growth in property tax revenue reflects rising property values and reassessments, further contributing to the General Fund balance.

3. Licenses and Permits(+$275,264): Revenue from licenses and permitsincreased,signaling robust development activity within the City.

The American Rescue Plan Act (ARPA) Fund accounts for Federal funding received for eligible expenditures related to the COVID‐19 pandemic. The ARPA fund had expenditures of $701 thousand and a total fund balance of $120 thousand.

Other non‐major governmental funds total fund balance increased by $1 million.

At June 30, 2024, the fund balance for the General Fund was $14.7 million which was an increase of approximately $2.6 million. The City adopted an operating reserve as follows:

Table 4‐a
Fund balances for the General Fund
Amount
General Fund ‐ fund balance for the year ending June 30, 2023 12,019,402 $ Total revenues 18,716,581
Total expenditures (15,404,477)
Subscription acquisition and transfers (684,025)
General Fund ‐ fund balance for the year ending June 30, 2024 14,647,481 $ Unassigned reserves
25% of operating expenditures  ‐ cash flow reserve policy 3,851,119 $ Unassigned (less nonspendable and restricted amounts)          10,343,543 The unassigned General Fund reserves were accumulated over time. The total unassigned General Fund reserves increased. The unassigned General Fund reserves are the result of:
 Fluctuations in assigned reserves (25% of annual operating expenditures per the City’s fund balance policy); and
 Year‐end operating surpluses/deficits.

It is important to note the 25% is the minimum fund balance for emergency reserves. Additional reserves are necessary above the 25% to minimize risk, for cash flow purposes, and to fund capital needs. The latest Capital Improvement Plan has $16.4 million in unfunded projects over the next four years. Unfunded Projects will be reviewed alongside Strategic goals to determine priority and allocate limited resources.

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐13‐
Enterprise Funds: As shown in the Statement of Revenues, Expenses, and Changes in Net Position, the Enterprise Funds had an increase in net position of $2.1 million for the current year. The Water fund had an increase in net position of $2.0 million primarily due to investment in capital assets; and the Sewer Fund had an increase in net position of $36 thousand. At the close of FY 2023‐2024, the total net change in net position of the City’s Internal Service Funds was an increase of $372 thousand.

Table 5
Statement of Revenues, Expenses and Changes in Net Position For the years ended June 30, 2023 and 2024
(in thousands)
2023 2024 2023 2024 2023 2024 2023 2024
Wa ter 6,446 $    $   6,707 4,953 $ $   4,929 (18) $       $   240 1,475 $    $   2,018 Sewer 1,199       1,245 1,305     1,289 17           80 (89)           36 Total s 7,645 $    $   7,952 6,258 $ $   6,218 (1) $         $   320 1,386 $    $   2,054 Gove rnmental Activi ties ‐
Internal Se rvice Funds 4,976 $    $   5,191 4,777 $ $   4,953 45 $        $   134 244 $       $   372 Revenues Expenses
Nonopera ting
revenue (expenses )
and trans fe rs
Net change in fund
balance
Capital Assets and Debt Administration
Capital Assets and intangible right‐to‐use assets
The City’s investment in capital assets for its governmental and business‐type activities as of June 30, 2024, amounts to $218.8 million (net of accumulated depreciation and amortization). This net investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, sewer lines, and the water distribution system.

Table 6
Capital assets and intangible assets (net of depreciation and amortization) June 30, 2023 and 2024
(in thousands)
2023 2024 2023 2024 2023 2024
Land 162,276 $   $162,276 1,483 $     $1,483 163,759 $ $163,759 Trees 1,206           1,206            ‐ ‐                    1,206 1,206 Construction in progress 3,503           5,077 95              135 3,598          5,212 Structures and improvements 6,437           6,197 114           95 6,551          6,292 Machinery and equipment 1,924           1,710 251           213 2,175          1,923 Infrastructure 9,896           9,955 29,457      29,735 39,353        39,690 Right‐to‐use ‐ leases 5                   21            ‐ ‐                            5 21 Right‐to‐use ‐ subscription 48                 18            ‐ ‐                          48 18 Total 185,295 $   $186,460 31,400 $ $31,661 216,695 $ $218,121 Governmental Activities
Business‐type
Activities Total

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐14‐
Additional information on the City of Sierra Madre’s capital assets can be found in Note 6 on pages 40 through 42 of this report.

Debt Administration
At the end of FY 2023‐2024, the City had long‐term debt outstanding of $7.0 million, of which $4.3 million is due for the 2017 Installment Agreement, and $2.7 million for the loan from the San Gabriel Valley Municipal Water District.

Additional information on the City’s long‐term debt can be found in Note 6 of the Financial Statements (pages 43 through 45).

Economic Condition and Budget Outlook
Sierra Madre is a full‐service municipality; it funds 90 full‐time employees assigned to nine operating departments which include general government activity, police and fire services, and water and sewer utilities.  The City’s primary goal is to provide high‐quality, cost‐effective services to its residents and businesses.   As in all service industries, personnel expense isthe primary business cost.  During the budget preparation for FY2017‐18, Zero‐based budget techniques were inaugurated to more efficiently manage financial resources; the technique is effective and has become a permanent part of the annual budget planning process. Zero‐Based budgeting ensures accountability and provides departments with a City‐wide budget perspective.

Citizens of Sierra Madre approved a permanent extension of the Utility Users Tax (UUT) at 10% (the City’ssecond largest revenue source), and property taxes in Sierra Madre continued to increase similar to the property value increases in Los Angeles County as a whole. Moving forward, challengesto the budget will include mandatory programsfrom the County and State and increases in pension obligations through CalPERS and the unfunded accrued liability (UAL). The City has made additional prepayment which has reduced our annual contributions going forward. The City also set aside funds in a Section 115 Trust fund for the purpose of paying off pension liabilities.

Strategic goals will be implemented into the budget process and as a resource to help prioritize programs and projects.

The latest Capital Improvement Plan has $16.4M in unfunded projects over the next four years. Unfunded Projects will be reviewed alongside Strategic goals to determine priority and allocate limited resources. Strategic goals will also help guide a General Fund reserve policy to set aside funding for future projects.

The City continued work with a third party consultant to develop a Master Plan for both Fire and Police Departments.

These Master Plan results are expected to be reviewed to determine available funding sources for implementing prioritized recommendations related to public safety services.

The City hired a third party consultant to perform a User Fee Study identifying the full service cost of providing each City service. The City initiated a cost of service analysis in an effort to establish appropriate levels of cost recovery of City service.

General Fund
The City’s largest fund is the General Fund and its revenues are approximately $18.7 million. It provides the resources necessary to sustain the day‐to‐day activities and services to the community. All ten departments receive support from the General Fund, either directly or indirectly in the form of subsidies (recorded as Transfers Out in the financial statements) or cost allocations (overhead).

The City of Sierra Madre, with a population of approximately 11,000, is primarily a residential community. Its small size and quiet neighborhoods provide a village‐like atmosphere the residents are proud to maintain. Sierra Madre has a small, bustling downtown, centered around the iconic Kersting Court. The commercial activity is proportional to the small population of the City, meaning Sierra Madre receives its most significant support from property tax and utility user tax (UUT), and a smaller amount from sales tax and other commercial activities.

CITY OF SIERRA MADRE
Management Discussion and Analysis
June 30, 2024
‐15‐
At fiscal year ending June 30, 2024, General Fund revenues were 47% property taxes, 28% other taxes, 10% licenses and permits, and 15% other sources.

Water Fund
The City Water fund utility is the City’s second largest fund. As a proprietary fund, the fund must collect fees for the services (water) that it provides and should be self‐funding. In other words, the water fund must perform as if it were a separate business that should stand alone from the other city funds.

In FY 2018‐2019 the City adopted the comprehensive water and wastewater cost of service and a Proposition 218 process to increase the rates and is currently in the process of adopting the updated Water and Waste Water Study. An infrastructure charge was implemented to raise funding to match the annual need of main replacements and improvements. In FY 23‐24 the water fund invested $1.2 million in capital and $2.2 million in FY 22‐23. The Water Fund will continue to invest in capital to make improvements needed.

Sewer Fund
The second Utility fund isthe City’s Sewer Fund.  As a proprietary fund, the fund must collect feesfor the services(sewer discharge) that it provides and should be self‐funding. Similar to the Water Fund, in FY 18‐19, the Sewer fund had a new rate study implemented and a Proposition 218 process to increase the rates.

Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Sierra Madre’sfinances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Sierra Madre, 232 West Sierra Madre Boulevard, Sierra Madre, California, 91024.

City of Sierra Madre, California
Village of the Foothills

Basic Financial Statements
For the Year Ended
June 30, 2024

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CITY OF SIERRA MADRE
Statement of Net Position
June 30, 2024
See accompanying notes to the basic financial statements. ‐16‐
Governmental
Activities
Business‐type
Activities Total
Assets:

Current assets:

Cash and investments 36,938,299 $     $ 12,000,769 $    48,939,068 Restricted cash and investments             442,481             53,195             495,676 Receivables, net:

Accounts 617,524                       878,462          1,495,986 Taxes 546,726              ‐                                546,726 Interest 424,002              ‐                                424,002 Lease                ‐ 55,897                                  55,897 Due from other governments 1,673                   ‐                                     1,673 Prepaids                   ‐ 1,293                                     1,293 Total current assets 39,027,895            12,932,426       51,960,321 Noncurrent assets:

Land held for resale 1,500,000           ‐                             1,500,000 Capital assets:

Non‐depreciable assets 168,559,551            1,618,473     170,178,024 Depreciable assets‐net 17,900,978            30,043,050       47,944,028 Total noncurrent assets 187,960,529          31,661,523     219,622,052 Total assets 226,988,424          44,593,949     271,582,373 Deferred Outflows of Resources:

OPEB related 494,160                          48,873             543,033 Pension related 6,864,587                    340,270          7,204,857 Total deferred outflows of resources 7,358,747                    389,143          7,747,890 Liabilities:

Current liabilities:

Accounts payable 881,709                       227,979          1,109,688 Accrued payroll and related liabilities 689,763                          69,803             759,566 Interest payable                      ‐             29,576               29,576 Deposits 641,349                       204,252             845,601 Unearned revenue 9,877,764           ‐                             9,877,764 Due wi thin one year 246,154                       986,210          1,232,364 Total current liabilities 12,336,739              1,517,820       13,854,559 Noncurrent liabilities:

Due in more than one year 956,839                    6,323,765          7,280,604 Net pension liability 9,023,364                    472,963          9,496,327 Net OPEB liability 222,034                          21,960             243,994 Total noncurrent liabilities 10,202,237              6,818,688       17,020,925 Total liabilities 22,538,976              8,336,508       30,875,484 Deferred Inflows of Resources:

OPEB related 290,304                          28,712             319,016 Pension related 1,706,101                       86,877          1,792,978 Leases                ‐ 46,714                                  46,714 Total deferred inflows of resources 2,043,119                    115,589          2,158,708 Net Position:

Net investment in capital assets 186,427,424          24,633,990     211,061,414 Restricted for:

Culture and recreation 774,632              ‐                                774,632 Development services 4,625,466           ‐                             4,625,466 Public safety              ‐ 250,250                                250,250 Public works           ‐ 3,257,708                             3,257,708 Section 115 Trust 442,481                          53,195             495,676 Unrestricted 13,987,115            11,843,810       25,830,925 Total net position $  209,765,076 $ 36,530,995 $  246,296,071

CITY OF SIERRA MADRE
Statement of Activities
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. ‐17‐
Operating Capital
Charges for grants and grants and
Functions/programs Expenses services contributions contributions Total Primary government:

Governmental activities:

General government $       3,689,340 $          484,100 $           ‐ 932,274 $                    $       1,416,374 Public safety          8,788,024              757,021               ‐ 274,707                                 1,031,728 Public works          4,316,367          1,692,712           ‐ 1,713,487                                 3,406,199 Development services          1,824,297              272,815                 ‐ 23,205                                     296,020 Culture and recreation          1,666,617                50,938               ‐ 880,058                                     930,996 Interest on long‐term liability                   ‐ 1,304                        ‐                        ‐                        ‐ Total governmental activities 20,285,949                  3,257,586           ‐ 3,823,731                                 7,081,317 Business‐type activities:

Water          5,115,315           ‐ 6,707,324                        ‐                                 6,707,324 Sewer 1,289,314                     ‐ 1,244,718                        ‐                                 1,244,718 Total business‐type activities 6,404,629                     ‐ 7,952,042                        ‐                                 7,952,042 Total primary government 26,690,578 $      $     11,209,628 $        ‐ 3,823,731 $                    $     15,033,359 General revenues:

Taxes:

Property taxes
Utility user taxes
Other taxes
Unrestricted sales taxes ‐ shared state revenue
Investment earnings
Miscellaneous
Transfers in (out)
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
Program Revenues
‐18‐
Governmental Business‐type
Activities Activities Total
$       ‐ (2,272,966) $                     $      (2,272,966) ‐ (7,756,296)                                 (7,756,296) ‐ (910,168)                                    (910,168) ‐ (1,528,277)                                 (1,528,277) ‐ (735,621)                                    (735,621) ‐ (1,304)                                         (1,304) ‐ (13,204,632)                              (13,204,632) ‐           1,592,009           1,592,009
‐               (44,596)               (44,596)
‐           1,547,413           1,547,413
(13,204,632)           1,547,413       (11,657,219)
8,741,395                       ‐           8,741,395
3,275,120                       ‐           3,275,120
727,438                       ‐              727,438
1,424,087                       ‐           1,424,087
1,631,059              410,946           2,042,005
502,929 73,671                               576,600
(22,120)                  ‐ 22,120
16,279,908              506,737         16,786,645
3,075,276           2,054,150           5,129,426
206,689,800         34,476,845      241,166,645
$   209,765,076 $     36,530,995 $   246,296,071
Net (expense) revenue
and changes in net position

CITY OF SIERRA MADRE
Balance Sheet
Governmental funds
June 30, 2024
See accompanying notes to the basic financial statements. ‐19‐
General Fund
Target State
Grant Library
American
Rescue Plan Act
Non‐Major
Governmental
Funds
Total
Governmental
Funds
Assets:

Cash and investments 14,196,925 $      $       8,508,168 $       1,649,140 $       7,428,394 $     31,782,627 Restricted cash and investments               ‐ 421,774                        ‐                        ‐                                     421,774 Receivables:

Accounts 442,192               ‐                        ‐                                     168,370              610,562 Taxes 483,912               ‐                        ‐                                       62,814              546,726 Interest 424,002               ‐                        ‐                        ‐                                     424,002 Leases 55,897                 ‐                        ‐                        ‐                                        55,897 Due from other agencies                        ‐ ‐                        ‐                                         1,673                   1,673 Due from other funds 18,308                 ‐                        ‐                        ‐                                        18,308 Prepaid                        ‐ ‐                        ‐                                         1,293                   1,293 Land held for resale                        ‐ ‐                        ‐                                 1,500,000           1,500,000 Total assets 16,043,010 $      $       8,508,168 $       1,649,140 $       9,162,544 $     35,362,862 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable 336,525 $           $             60,992 $               1,225 $          285,927 $           684,669 Accrued payroll and related
liabilities 430,843                                5,376                82,324                22,685              541,228 Due to other funds                        ‐ ‐                        ‐                                       18,308                 18,308 Deposits 581,447               ‐                                         4,462                55,440              641,349 Unearned revenue                       ‐          8,147,663          1,441,101              289,000           9,877,764 Total liabilities 1,348,815                    8,214,031          1,529,112              671,360         11,763,318 Deferred inflows of resources:

Unavailable revenues                        ‐ ‐                        ‐                                       15,000                 15,000 Leases 46,714                 ‐                        ‐                        ‐                                        46,714 Total deferred inflows of resources 46,714                 ‐                        ‐                                       15,000                 61,714 Fund balances:

Restricted 452,819 294,137                            120,028          8,462,846           9,329,830 Committed                        ‐ ‐                        ‐                                       13,338                 13,338 Unassigned 14,194,662         ‐                        ‐                        ‐                                14,194,662 Total fund balances 14,647,481                      294,137              120,028          8,476,184         23,537,830 Total liabilities, deferred inflows of
resources, and fund balances 16,043,010 $      $       8,508,168 $       1,649,140 $       9,162,544 $     35,362,862

CITY OF SIERRA MADRE
Reconciliation of the Governmental Funds Balance Sheet
to the Government‐wide Statement of Net Position
June 30, 2024
See accompanying notes to the basic financial statements. ‐20‐
Total fund balances ‐ total governmental funds $      23,537,830 Amounts reported for governmental activities in the Statement of Net Position were di fferent because:

Capital assets used in governmental activi ties were not current financial resources.

Therefore, they were not reported in the governmental funds:

Capital assets, net of depreciation 185,288,729
Long‐term liabilities applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long‐term are reported in the Statement of Net Position:

Subscription liability                (12,353)
Net pension liability           (8,643,510)
Net OPEB liability              (212,274)
Compensated absences              (934,536)
Deferred outflows and inflows of resources related to pension and OPEB are not reported in the governmental funds:

Pension and OPEB related deferred outflows of resources            7,048,832 Pension and OPEB related deferred inflows of resources           (1,911,925) Revenues reported as unavailable revenue in the governmental funds are recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity.                  15,000
Internal service funds are used by management to charge the costs of certain activities, such as facilities management, to individual funds. The assets and liabilities of the internal service funds are not included in the governmental funds balance sheet, however, these are included in governmental activities in the Statement of Net Position.            5,589,283

Net position of governmental activities $    209,765,076

CITY OF SIERRA MADRE
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. ‐21‐
General Fund
Target State
Grant Library
American
Rescue Plan Act
Non‐Major
Governmental
Funds
Total
Governmental
Funds
Revenues:

Property taxes 8,741,395 $        ‐ $                    ‐ $                    $          118,006 $        8,859,401 Other taxes 5,284,445           ‐                        ‐                        ‐                                  5,284,445 Charges for services 956,736               ‐                        ‐                                             468              957,204 Intergovernmental 269,162                            787,888              701,088          2,085,024           3,843,162 Licenses and permits 1,838,502           ‐                        ‐                                     342,928           2,181,430 Fines and forfeitures 89,175                 ‐                        ‐                        ‐                                        89,175 Investment income 1,051,748                        271,751                68,709              229,551           1,621,759 Miscellaneous 485,418               ‐                        ‐                                     176,823              662,241 Total revenues 18,716,581                  1,059,639              769,797          2,952,800         23,498,817 Expenditures:

Current:

General government 3,760,203                       ‐                 ‐ 56,480                                  3,816,683 Public safety 8,299,322                        ‐ ‐                                     250,937           8,550,259 Public works 574,970 787,888                            644,608          2,213,722           4,221,188 Development 1,600,931                        ‐ ‐                                       23,205           1,624,136 Culture and recreation 1,159,097                        ‐ ‐                                       98,114           1,257,211 Debt Service:

Principal 9,487                   ‐                        ‐                        ‐                                          9,487 Interest 467                       ‐                        ‐                        ‐                                             467 Total expenditures 15,404,477                      787,888              701,088          2,585,978         19,479,431 Excess (deficiency) of revenues
over (under) expenditures 3,312,104                        271,751                68,709              366,822           4,019,386 Other financing sources (uses):

Transfers in                        ‐ ‐                        ‐                                     686,905              686,905 Transfers out (684,025)             ‐                        ‐                                      (25,000)             (709,025) Total other financing sources (uses) (684,025)             ‐                        ‐                                     661,905               (22,120) Net change in fund balances 2,628,079                        271,751                68,709          1,028,727           3,997,266 12,019,402 22,386                                51,319          7,447,457         19,540,564 Fund balances, end of year 14,647,481 $      $          294,137 $          120,028 $       8,476,184 $     23,537,830 Fund balances, beginning of year

CITY OF SIERRA MADRE
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government‐Wide Statement of Activities For the year ended June 30, 2024
See accompanying notes to the basic financial statements. ‐22‐
Net change in fund balances ‐ total governmental funds $        3,997,266

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities and Changes in Net Position, the costs of those assets meeting the City's capitalization policy threshold are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense in the current period:

Depreciation and amortization expense (1,487,279)
Capital outlay           2,806,518
The issuance of long‐term debt provides current financial resources to governmental funds while the repayment of the principal of long‐term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities and Changes in Net Position. These di fferences are as follows:

Principal payments                   9,487
Revenues that do not meet the revenue recognition criteria are recorded as unavailable revenue in the governmental funds, however, they are reported as revenues in the Statement of Activities. (250,487) Internal service funds are used by management to charge the costs of sel f‐insurance and capital replacements to individual funds. The net revenue of internal service funds is reported with governmental activities.              372,588
Some expenses reported on 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 compensated absences             (118,003) Net change in net OPEB liability related deferred outflows and inflows of resources (5,893) Net change in net pension liability related deferred outflows and inflows of resources          (2,248,921) Change in net position of governmental activities $        3,075,276 Amounts reported for governmental activities in the Statement of Activities were di fferent because:

CITY OF SIERRA MADRE
Statement of Fund Net Position
Proprietary Funds
June 30, 2024
See accompanying notes to the basic financial statements. ‐23‐
Non‐Major Fund
Water Sewer
Special Strike
Team Services
Total
Enterprise
Funds
Governmental
Activities Internal
Service Funds
Assets:

Current assets:

Cash and investments 9,540,839 $        $    2,378,056 $              81,874 $ 12,000,769 $          5,155,672 Restricted cash and investments 29,561                              ‐ 23,634                                     53,195                   20,707 Receivables:

Accounts              743,208           ‐ 135,254                                  878,462                      6,962 Total current assets 10,313,608               2,536,944                 81,874     12,932,426              5,183,341 Noncurrent assets:

Capital assets:

Non‐depreciable assets 1,618,473            ‐                    ‐                               1,618,473                      1,980 Depreciable assets, net 27,629,145                ‐ 2,413,905                             30,043,050              1,169,820 Total noncurrent assets 29,247,618                ‐ 2,413,905                             31,661,523              1,171,800 Total assets 39,561,226               4,950,849                 81,874     44,593,949              6,355,141 Deferred Outflows of Resources:

OPEB related 27,152                              ‐ 21,721                                     48,873                   21,721 Pension related 189,039                         ‐ 151,231                                  340,270                 288,194 Total deferred outflows of resources 216,191                         ‐ 172,952                                  389,143                 309,915 Liabilities:

Current liabilities:

Accounts payable 220,772                              ‐ 7,207                                  227,979                 197,040 Accrued payroll and related
liabilities 45,640                              ‐ 24,163                                     69,803                 148,535 Interest payable 29,576                 ‐                    ‐                                      ‐ 29,576 Deposits 204,252               ‐                    ‐                                   ‐ 204,252 Compensated absences ‐ current 37,049                              ‐ 19,439                                     56,488                   47,070 Lease liability ‐ current                        ‐ ‐                    ‐                         ‐                                         4,614 Loan payable ‐ current 540,000               ‐                    ‐                                   ‐ 540,000 Installment agreement payable ‐ current 389,722               ‐                    ‐                                   ‐ 389,722 Total current liabilities 1,467,011                         ‐ 50,809                               1,517,820                 397,259 Noncurrent liabilities:

Compensated absences 148,197                            ‐ 77,757                                  225,954                 188,282 Net pension liability 262,757 210,206                        ‐          472,963                 379,854 Net OPEB liability 12,200                                ‐ 9,760                                     21,960                      9,760 Lease liability                        ‐ ‐                    ‐                         ‐                                      16,138 Installment agreement/loan payable 6,097,811            ‐                    ‐                                ‐ 6,097,811 Total noncurrent liabilities 6,520,965                      ‐ 297,723                               6,818,688                 594,034 Total liabilities 7,987,976                      ‐ 348,532                               8,336,508                 991,293 Deferred Inflows of Resources:

OPEB related 15,951                              ‐ 12,761                                     28,712                   12,761 Pension related 48,265                              ‐ 38,612                                     86,877                   71,719 Total deferred inflows of resources 64,216                              ‐ 51,373                                  115,589                   84,480 Net Position:

Net investment in capital assets 22,220,085                ‐ 2,413,905                             24,633,990              1,151,048 Restricted ‐ Section 115 Trust 29,561                              ‐ 23,634                                     53,195                   20,707 Unrestricted 9,475,579                  2,286,357                 81,874     11,843,810              4,417,528 Total net position $     31,725,225 $    4,723,896 $              81,874 $ 36,530,995 $          5,589,283 Major Funds
Enterprise Funds
Business‐type Activities

CITY OF SIERRA MADRE
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. ‐24‐
Enterprise Funds
Non‐Major Fund
Water Sewer
Special Strike
Team Services
Total
Enterprise
Funds
Governmental
Activities
Internal Service
Funds
Operating revenues:

Charges for services 6,707,324 $     $     ‐ 1,243,128 $                       $   7,950,452 $       5,116,985 Licenses and permits                    ‐                 ‐ 1,590                                        1,590                27,377 Miscellaneous                     ‐ ‐                     ‐                          ‐                                   46,613 Total operating revenues 6,707,324                 ‐ 1,244,718                                7,952,042          5,190,975 Operating expenses:

Personnel services 800,447                       ‐ 663,950                                1,464,397          1,873,106 Contractual services 383,678                         ‐ 44,984                                   428,662              677,965 Materials and supplies           644,386                 ‐ 6,390                                   650,776              283,246 Utilities            ‐ 780,272                     ‐                                   780,272              684,841 Maintenance and operation 67,825                              ‐ 3,093                                     70,918                90,496 Administrative charges 1,455,537                    ‐ 397,242                                1,852,779          1,165,638 Depreciation 796,773                       ‐ 173,655                                   970,428              148,411 Amortization                     ‐ ‐                     ‐                          ‐                                   28,862 Total operating expenses 4,928,918                 ‐ 1,289,314                                6,218,232          4,952,565 Operating income (loss) 1,778,406                     ‐ (44,596)                                1,733,810              238,410 Nonoperating revenues (expenses):

Investment income 330,112                         ‐ 80,834                                   410,946              135,015 Interest expense (186,397)           ‐                     ‐                                  (186,397)                    (837) Grant revenue 73,671              ‐                     ‐                                      ‐ 73,671 Total nonoperating revenues (expenses) 217,386                         ‐ 80,834                                   298,220              134,178 Income before transfers        1,995,792              ‐ 36,238                                2,032,030              372,588 Transfers:

Transfers in 22,120              ‐                     ‐                                      ‐ 22,120 Total transfers 22,120              ‐                     ‐                                      ‐ 22,120 Change in net position 2,017,912                      ‐ 36,238                                2,054,150              372,588 Net position, beginning of year 29,707,313             4,687,658                  81,874    34,476,845          5,216,695 Net position, end of year 31,725,225 $   $    4,723,896 $               81,874 $36,530,995 $       5,589,283 Business‐type Activities
Major Funds

CITY OF SIERRA MADRE
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. ‐25‐
Non‐Major Fund
Water Sewer
Special Strike
Team Services
Total
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
Cash flows from operating activities:

Receipts from customers and users 6,581,892 $       $       ‐ 1,229,132 $                        $     ‐ 7,811,024 $ Receipts from interfund services provided                       ‐ ‐                       ‐                            ‐                            5,191,215 Payments to suppliers        (4,052,653)             ‐ (456,859)                                 (4,509,512)       (2,952,561) Payments to employees (696,510)                         ‐ (577,509)                                 (1,274,019)       (1,737,180) Net cash provided (used) by
operating activities 1,832,729                        ‐ 194,764                                  2,027,493            501,474 Cash flows from non‐capital
financing activities:

Transfers from other funds 22,120                ‐                       ‐                                         ‐ 22,120 Grant revenue 73,671                ‐                       ‐                                         ‐ 73,671 Net cash provided (used) by non‐capital
financing activities 95,791                ‐                       ‐                                         ‐ 95,791 Cash flows from capital and
related financing activities:

Acquisition and construction
of capital assets (1,231,739)         ‐                       ‐                                  ‐ (1,231,739) Principal paid (376,062)             ‐                       ‐                                    (376,062)             (31,056) Interest paid (188,967)             ‐                       ‐                                    (188,967)                   (837) Net cash provided (used) by capital
and related financing activities (1,796,768)         ‐                       ‐                                 (1,796,768)             (31,893) Cash flows from investing activities:

Investment income 330,112                             ‐ 80,834                                     410,946            135,015 Net cash provided (used)
by investing activities 330,112                             ‐ 80,834                                     410,946            135,015 Net increase (decrease) in cash and
cash equivalents 461,864                           ‐ 275,598                                     737,462            604,596 Cash and investments:

Beginning of year 9,108,536                    2,126,092                    81,874     11,316,502         4,571,783 End of year 9,570,400 $       $      2,401,690 $                 81,874 $ 12,053,964 $     5,176,379 Reconciliation to the Statement of Net Position:

Cash and investments 9,540,839 $       $      2,378,056 $                 81,874 $ 12,000,769 $     5,155,672 Restricted cash and investments 29,561                               ‐ 23,634                                        53,195              20,707 Total $      9,570,400 $      2,401,690 $                 81,874 $ 12,053,964 $     5,176,379 Business‐type Activities
Enterprise Funds
Major Funds

CITY OF SIERRA MADRE
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. ‐26‐
Non‐Major Fund
Water Sewer
Non‐Major
Enterprise Funds
Total
Enterprise
Funds
Governmental
Activities
Internal
Service Funds
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) 1,778,406 $       $            ‐ (44,596) $                        $    1,733,810 $         238,410 Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 796,773                           ‐ 173,655                                     970,428            148,411 Amortization                       ‐ ‐                       ‐                            ‐                                 28,862 Changes in assets, liabilities and deferred amounts:
(Increase) decrease in accounts receivable (125,432)                           ‐ (15,586)                                    (141,018)                    240 (Increase) decrease in prepaid expenses                       ‐ ‐                       ‐                            ‐                                    1,300 (Increase) decrease in deferred outflows 57,727                               ‐ 46,182                                     103,909              80,341 Increase (decrease) in accounts payable (824,846)                             ‐ (5,150)                                    (829,996)             (51,675) Increase (decrease) in accrued liabilities 10,400                                  ‐ 5,563                                        15,963              42,683 Increase (decrease) in deposits payable 103,891              ‐                       ‐                                      ‐ 103,891 Increase (decrease) in compensated absences 10,880                               ‐ 14,752                                        25,632               (6,907) Increase (decrease) in deferred inflows (18,194)                             ‐ (14,555)                                      (32,749)             (41,120) Increase (decrease) in net OPEB liability 4,693                                     ‐ 3,754                                          8,447                 3,754 Increase (decrease) in net pension liability 38,431                               ‐ 30,745                                        69,176              57,175 Total adjustments 54,323                             ‐ 239,360                                     293,683            263,064 Net cash provided (used) by operating activities 1,832,729 $       $           ‐ 194,764 $                        $    2,027,493 $         501,474 Noncash investing, capital and financing activities:

Lease liabilities $                    ‐ ‐ $                    ‐ $                        ‐ $                 $           24,317 Lease acquisition                       ‐ ‐                       ‐                            ‐                                (24,317) Major Funds
Business‐type Activities
Enterprise Funds
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City of Sierra Madre, California
Village of the Foothills

Notes to Basic Financial Statements
For the Year Ended
June 30, 2024
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CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐27‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Sierra Madre, California (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) 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 more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City was incorporated on February 2, 1907, under the general laws of the State of California. The City operates under a Council‐Manager form of government and provides the following services: police protection, fire suppression and prevention, emergency medical response, recreation programs, senior services, local transportation, planning and permit processing, water utility, public library, streets, parks, sewer and storm drain utility, and general government and administrative services.

As required by GAAP, these basic financial statements present the City (the primary government) and its component unit for which the City is considered to be financially accountable. The component unit discussed below is included in the City’s reporting entity because of the significance of its operational or financial relationship with the City. The entity is legally separate; however, the City of Sierra Madre elected officials have a continuing oversight responsibility over the Authority.

An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit’s balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the City’s or the component unit provides services almost entirely to the City.

Blended Component Units
The Sierra Madre Public Financing Authority (Authority):

The Authority is a joint powers authority organized pursuant to Government Code Section 6500 of the State of California.

The Authority exists pursuant to a Joint Exercise of Powers Agreement dated November 1972, between the City and the Authority. Its purpose is facilitating the issuance of debt instruments, loans, and other financing to the City or Authority for the construction of public improvements. It has no separate existence and has acted as a conduit between the issuer (the Authority and/or the City) and the underwriters. It was established as a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments and mechanisms. City Council members, in concurrent sessions, serve as the governing board of the Authority. Financial activity of the Authority has been blended into the City’s Annual Comprehensive Financial Report (ACFR) into various governmental and business‐type activities and funds of the City as applicable.

Separate financial statements are not prepared for the Sierra Madre Public Financing Authority.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐28‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) A. Financial Reporting Entity, (continued)
Organizations Other Than Component Units
Other governmental agencies, such as the County of Los Angeles, the Pasadena Unified School District, etc., provide services within the City. However, each of these agencies is governed by an independently elected governing board.

Accordingly, their financial information is  not  included  within  the  scope  of  this financial report, because the City Council does not  have a continuing oversight responsibility over  them, nor are their financial operations closely related thereto.

B. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
 Government‐wide financial statements
 Fund financial statements
 Notes to basic financial statements
Financial reporting is based upon all Governmental Accounting Standards Board pronouncements.

Government‐Wide Financial Statements
The City’s government‐wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business‐type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These basic financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets (as well as infrastructure assets) and long‐term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability isincurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues.

Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses reported for specific functions.

Certain types of transactions are reported as program revenues for the City in three categories: (1) charges for services, (2) operating grants and contributions and (3) capital grants and contributions. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program.

Certain eliminations have been made as prescribed by generally accepted accounting principles in regard to interfund activities. All internal balancesin the Statement of Net Position have been eliminated except those representing internal balances between the governmental activities and the business‐type activities, which are presented asinternal balances and eliminated in the total primary government column.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐29‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) B. Basis of Accounting and Measurement Focus, (continued) Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and non‐major funds aggregated. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balances presentsincreases(revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period, generally 60 days after year‐ end. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

Property taxes, sales taxes, franchise taxes, and other taxes associated with the current fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year‐end). Expenditure‐ driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 180 days of year‐end). All other revenue items are considered measurable and available only when cash is received by the government.

The reconciliations of the Fund Financial Statements to the Government‐Wide Financial Statements are provided to explain the differences created by the integrated approach of GASB Statement No. 34.

The City reports the following major governmental funds:

General Fund – Accounts for all financial resources of the general government except those required to be accounted for in another fund.

Target State Grant Library Fund – Accounts for a $10,000,000 award from the California State Library and allowable expenditures
American Rescue Plan Act Fund – Accounts for all American Rescue Plan Act grant funds and allowable expenditures.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Net Position, and a Statement of Cash Flows for the major proprietary funds and the non‐major funds aggregated. The City maintainstwo proprietary fund types: enterprise funds and internalservice funds. Enterprise funds are used to account for services provided to businesses and individuals within the community. Internal service funds account for services provided by one City department to other departments.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐30‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) B. Basis of Accounting and Measurement Focus, (continued) Proprietary Fund Financial Statements, (continued)
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period when they are earned; expenses are recognized when they are incurred. Unbilled service receivables are recorded as accounts receivable and as revenue when earned.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non‐operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non‐operating expenses.

The City reports the following major enterprise funds:

Water Fund – Accounts for the operations of the City’s water utility operations.

Sewer Fund – Accounts for the operations of the City’s sewer system and storm drain operations.

Additionally, the City also reports Internal Service Funds. These funds account for the administrative services, insurance coverage and facilities, fleet and electronic equipment maintenance services, all which are provided to other departments on a cost‐reimbursement basis. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government‐wide financial statements.

C. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City has defined cash and cash equivalents to include cash on hand, demand deposits, cash with fiscal agent, as well as short‐term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as cash and investments. Additionally, each fund’s equity in the City’s investment pool is treated as a cash equivalent, because the funds can deposit or effectively withdraw cash at any time without prior notice or penalty.

In accordance with generally accepted accounting principles, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotation are readily available or exceed cost. However, if the liquidity needs of the City were to require that investments be sold at a losssubsequent to year‐end, the decline in value would be recorded as a loss at year‐end.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset‐Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset‐Backed Securities are subject to market risk as to change in interest rates.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐31‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) C. Cash, Cash Equivalents, and Investments, (continued) In accordance with generally accepted accounting principles, certain disclosure requirements, if applicable, are provided for deposit and investment risk in the following areas:
 Inherent Rate Risk
 Credit Risk
 Overall
 Custodial Credit Risk
 Concentration of Credit Risk
 Foreign Currency Risk
D. Land Held for Resale
Land Held for Resale in the Capital Projects Fund is an inventory of land owned by the City’s Housing Fund for low‐ moderate housing needs, which will be sold or leased to developers. The land is recorded at the lower of acquisition cost or market. Fund balances are reserved in amounts equal to the carrying value of land held for resale, because such assets are not available to finance the City’s current operations.

E. Prepaid Expenses
Certain payments to vendors such as insurance premiums, prepaid rents, and deposits for real property acquisitions reflect costs applicable to future periods and are recorded as prepaid and other assets in both government‐wide and fund financial statements. These costs will be recognized in the period when services are received or when the City receives title to the real property.

F. Property Taxes
Property tax in California is levied in accordance with Article 13B of the State Constitution at one percent of county‐ wide assessed valuations. This one percent is allocated pursuant to State law to the appropriate units of local government. Property tax revenue is recognized in the fiscal year for which taxes have been levied provided that the revenues collected in the current period or will be collected within 60 days thereafter.

The following dates relate to property tax levies and collections:

Lien Date   January 1
Levy Date   July 1
Due Dates   November 1 and February 1
Delinquent Dates   December 10 and April 10

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐32‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) G. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated assets are valued at acquisition value on the date of acquisition. The City’s capitalization policy is $5,000 and above for various capital assets and $25,000 for improvements and infrastructure. Capital assets are depreciated on a straight‐ line basis over their estimated useful lives as follows:

Roadways pavement AC     25 years
Street appurtenances bridges   40 years
Park structures       25 years
Wastewater manholes     60 years
Pipelines     60 years
Spreading basins       60 years
Pump stations       60 years
Meters         30 years
Pipelines     50 years
Pressure reducing stations     40 years
Fire hydrants       50 years
Wells         50 years
Reservoirs       75 years
General buildings       50 years
Vehicles and equipment     10 years
H. Claims Payable
The City records a liability to reflect an estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims.

I. Compensated Absences
All vested vacation and compensatory leave time is recognized as an expense and as a liability in the proprietary type funds at the time the liability vests. Governmental fund types recognize the vested vacation and compensatory time as expenditure in the current year to the extent that it is paid during the year. Accrued vacation and compensatory time relating to governmental funds is only included as a liability in the statement of net position as those amounts are payable from future resources and within the respective balance sheets for amounts relating to proprietary fund types.

For governmental funds, compensated absences are primarily liquidated by the City’s General Fund.

J. Net Position and Fund Balances
Government‐Wide Financial Statements – In the government‐wide financial statements, 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 improvements.

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 do not meet the definition of “net investment in capital assets” or “restricted net position.”

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐33‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) J. Net Position and Fund Balances, (continued)
When both restricted and unrestricted net position is available to meet an expense, the City’s policy isto apply restricted net position first.

Fund Financial Statements – Generally accepted accounting principles require the City to report the governmental fund balances in the following categories:

Nonspendable ‐ reflects amounts that are not in a spendable form, examples of which include inventory, prepaid items, and other items legally or contractually required to remain intact, such as the principal of a permanent endowment.

Restricted ‐ includes amounts that can be spent only for the specific purposes stipulated by external resource providers or through enabling legislation.

Committed  ‐ includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision‐making authority (City Council by ordinance). Committed fund balance may be redirected by the City to other purposes, aslong as, the original constraints are removed or modified in the same manner in which they were imposed, that is, by the same formal action of the highest level of decision‐making authority.

Assigned  ‐  comprises amounts intended to be used by the government for specific purposes. Assignments may be established either by the City Council or by a designee of the City (the City Council has delegated this authority to the City Manager), and are subject to neither the restricted nor committed levels of constraints.

Unassigned  ‐  is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose.

When expenditures are incurred for purposes for which restricted, committed, assigned, or unassigned fund balances are available, the City’s policy is to apply restricted fund balance first, committed second, then assigned fund balance, and finally unassigned fund balance. Further, when components of unrestricted fund balance can be used for the same purpose, committed fund balance is used first, followed by assigned fund balance and lastly unassigned fund balance.

K. Use of Estimates
The preparation of financialstatementsin conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.

L. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position 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 so will not be recognized as an outflow of resources (expenses) until then. The City currently has OPEB and pension related deferred outflows of resources.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City currently has OPEB, pension and lease related deferred inflows of resources.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐34‐

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) M. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date     June 30, 2022
Measurement Date   June 30, 2023
Measurement Period   July 1, 2022 to June 30, 2023
N. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are reported at fair value.

GAAP requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD)   June 30, 2023
Measurement Date (MD)   June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐35‐

2. CASH AND INVESTMENTS
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments 48,939,068 $
Restricted cash and investments 495,676
Total cash and investments 49,434,744 $
Cash and investments as of June 30, 2024 consist of the following:

Petty cash 2,300 $
Deposits with financial institutions 2,333,194
Investments 47,099,250
Total cash and investments 49,434,744 $
Investments Authorized by the California Government Code and the City’s Investment Policy The City’s investment policy does not contain any specific provisions intended to limit the City’s exposure to interest rate risk, credit risk, and concentration of credit risk.

The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by the fiscal agent 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.

Investment Types
Authorized by State Law
Authorized by
investment
policy
Maximum
maturity*
Maximum
percentage of
portfolio*
Maximum
investment in
one issuer*
Local Agency Bonds Yes 5 years None None
US Treasury Obligations Yes 5 years None None
US Agency Securities Yes 5 years None None
Bankers' acceptances Yes 180 days 40% 5%
Commercial paper Yes 270 days 25% 5%
Negotiable certificates of deposit Yes 5 years 30% None Repurchase agreements Yes 92 days 20% None
Reverse repurchase agreements No 91 days 20% None
Medium‐term notes No 5 years 10% None
Money market mutual funds No N/A 20% 10%
Mortgage pass‐through securities No 5 years 20% None
County pooled investment funds No N/A None None
Local Agency Investment Funds (LAIF) Yes N/A None 75,000,000 $ JPA Pools (other investment pools) No N/A None None
* based on state law requirements or investment policy requirements, whichever is more restrictive

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐36‐

2. CASH AND INVESTMENTS, (continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by the bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Authorized investment type
Maximum
maturity
Maximum
percentage of
portfolio
Maximum
investment
in one issuer
US Treasury Obligations None None None
US Agency Securi ties None None None
Money market funds None None None
Certi ficates of deposit secured by collateral None None None Interest‐bearing deposit accounts None None None
Investment agreements None None None
Commercial paper None None None
Municipal bonds or notes None None None
State bonds or notes None None None
Bankers' acceptances 1 year None None
Repurchase agreements 30 days None None
Concentration of Credit
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2024, there were no investments in any one issuer (other than US Treasury securities and external investment pools) that represents 5% or more of total City investments.

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates which 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 short‐term and long‐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 cash flow and liquidity needed for operations.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐37‐

2. CASH AND INVESTMENTS, (continued)
Interest Rate Risk, (continued)
Information about the sensitivity of the fair values of the City’s investments (including investments held by fiscal agent) to market interest rate fluctuationsis provided by the following table thatshowsthe distribution of the City’sinvestment by maturity:

Investment type Total 12 or less 13 ‐24 25 ‐ 60
State investment pool 38,921,077 $      $      ‐ 38,921,077 $                    ‐ $ US Treasury Bills 2,430,828                     ‐ 2,430,828                        ‐ US Treasury Notes 5,500,040                    4,029,671           ‐ 1,470,369 Certi ficate of Deposits              247,305               ‐ 247,305                        ‐ Total 47,099,250 $      $     45,628,881 $        ‐ 1,470,369 $ Investment maturities (in months)
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 of year‐end for each investment type.

Minimum
legal Not
Investment type Total rating AAA rated
State investment pool 38,921,077 $      N/A $                   ‐ $     38,921,077 US Treasury Bills 2,430,828           N/A 2,430,828           ‐ US Treasury Notes 5,500,040           N/A 5,500,040           ‐ Certi ficates of Deposits              247,305 N/A 247,305               ‐ Total 47,099,250 $      $       8,178,173 $     38,921,077 Ratings as of year‐end

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐38‐

2. CASH AND INVESTMENTS, (continued)
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 market 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. As of June 30, 2024, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the 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. LAIF has a minimum $5,000 transaction amount in increments of $1,000 with a maximum of 15 transactions(combination of deposits and withdrawals) per month. LAIF requires a one‐day prior notice for deposits and withdrawals of $10 million or more.

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

Investment type Total Level 1 Level 2 Level 3
US Treasury Bills 2,430,828 $      ‐ $               $      ‐ 2,430,828 $ US Treasury Notes 5,500,040         ‐                          ‐ 5,500,040 Certi ficates of Deposits 247,305            ‐                             ‐ 247,305 Sub‐total 8,178,173         ‐ $               $      ‐ 8,178,173 $ Investments not subject to fair value hierarchy:

State investment pool 38,921,077
Total 47,099,250 $
Fair value measurement
Level 2 investments are valued using a Continuous Fixed Income Evaluated Pricing service.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐39‐

3. INTERFUND BALANCES AND TRANSFERS
A. Due To/Due From
At June 30, 2024, the City had the following short‐term interfund receivables and payables:

Receivable Payable Amount
General Fund Non‐major Governmental Funds 18,308 $
The interfund amounts are for short‐term loans to cover temporary cash deficits.

B. Transfers
At June 30, 2024, the City had the following transfers:

Transfers out Transfers in Amount
General Fund Non‐major Governmental Funds 661,905 $
General Fund Water Fund 22,120
Non‐major Governmental Funds Non‐major Governmental Funds 25,000 Total 709,025 $
a. $661,905 from General Fund to non‐major governmental funds to fund street capital expenditures as a match requirement, and to reimburse a grant fund for unallowed expenditures. b. $22,120 transfer from the General Fund to the Water Fund to subsidize low‐income discount. c. $25,000 transfer from Robert Day Trust Fund to the Library Gift and Memorial Fund as approved by the Library Board of Trustees.

4. LEASES RECEIVABLE
As of June 30, 2024, the City had one active lease. The lease has receipts of $31,420 and an interest rate of 0.9800%. As of June 30, 2024, the total combined value of the lease receivable is $55,897, and the value of the deferred inflow of resources is $46,714.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐40‐

5. CAPITAL ASSETS
A. Governmental Activities
A summary of changes in the governmental activities capital assets at June 30, 2024 is as follows:

Beginning Ending
Governmental activities: balance Additions Deletions balance Capital assets, not being depreciated:

Land 162,275,945 $   ‐ $               ‐ $                $   162,275,945 Trees 1,206,214           ‐                  ‐                             1,206,214 Construction in progress 3,503,311               1,592,061          (17,980)           5,077,392 Total capital assets, not being
depreciated 166,985,470          1,592,061          (17,980)      168,559,551 Capital assets, being depreciated
and amortized
Structures and improvements 14,123,406        ‐                  ‐                          14,123,406 Machinery and equipment 5,515,826                     ‐ 97,860                             5,613,686 Infrastructure 28,401,322             ‐ 1,118,202                          29,519,524 Right‐to‐use lease equipment 16,375                          ‐ 24,317                                  40,692 Right‐to‐use subscription 76,790                ‐                  ‐                                  76,790 Total capital assets, being
depreciated and amortized 48,133,719             ‐ 1,240,379                          49,374,098 Less accumulated depreciation
and amortizion
Structures and improvements (7,686,599)                ‐ (239,392)                           (7,925,991) Machinery and equipment (3,592,022)                ‐ (311,977)                           (3,903,999) Infrastructure (18,505,466)          ‐ (1,059,459)                         (19,564,925) Right‐to‐use lease equipment (11,802)                          ‐ (7,684)                                 (19,486) Right‐to‐use subscription (29,054)                        ‐ (29,665)                                 (58,719) Total accumulated depreciation
and amortization (29,824,943)          ‐ (1,648,177)                         (31,473,120) Total capital assets being depreciated
and amortized 18,308,776               ‐ (407,798)                          17,900,978 Governmental activities,
capital assets, net 185,294,246 $   $ 1,184,263 $       (17,980) $   186,460,529

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐41‐

5. CAPITAL ASSETS, (continued)
A. Governmental Activities, (continued)
Depreciation and amortization expense was charged to functions/programs of the City’s governmental activities as follows:

Governmental activities:

General government 85,738 $
Public safety 217,937
Public works 1,157,840
Culture and recreation 186,662
Total 1,648,177 $
The remainder of this page left intentionally blank.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐42‐

5. CAPITAL ASSETS, (continued)
B. Business‐type Activities
A summary of changes in the business‐type activities capital assets at June 30, 2024 is as follows:

Beginning Ending
Business‐type activities: balance Additions Deletions balance Capital assets, not being depreciated:

Land 1,483,250 $       ‐ $                ‐ $                $    1,483,250 Construction in progress 95,456                            ‐ 39,767                            135,223 Total capital assets, not being
depreciated 1,578,706                       ‐ 39,767                         1,618,473 Capital assets, being depreciated:

Structures and improvements 821,290              ‐                   ‐                            821,290 Machinery and equipment 1,312,175           ‐                   ‐                         1,312,175 Infrastructure 53,662,979              ‐ 1,191,972                       54,854,951 Total capital assets, being
depreciated 55,796,444              ‐ 1,191,972                       56,988,416 Structures and improvements (707,353)                       ‐ (19,395)                           (726,748) Machinery and equipment (1,061,162)                   ‐ (37,666)                        (1,098,828) Infrastructure (24,206,423)               ‐ (913,367)                     (25,119,790) Total accumulated depreciation (25,974,938)               ‐ (970,428)                     (26,945,366) Total capital assets being depreciated 29,821,506                 ‐ 221,544                       30,043,050 Business‐type activities,
capital assets, net 31,400,212 $     $       ‐ 261,311 $                $ 31,661,523 Depreciation expense was charged to functions/programs of the City’s business‐type activities as follows:

Business‐type activities:

Water 796,773 $
Sewer 173,655
Total 970,428 $

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐43‐

6. LONG‐TERM LIABILITIES
A. Governmental Activities
A summary of changes in the governmental activities long‐term liabilities at June 30, 2024 is as follows:

Beginning Ending Due within Due more
Governmental activities: balance Additions Deletions balance one year than one year Lease liability 4,488 $             $       24,317 $         (8,053) $         20,752 $      4,614 $         16,138 Subscription liability 44,843              ‐                           (32,490)             12,353         7,562               4,791 Compensated absences 1,058,792               719,209        (608,113)       1,169,888     233,978          935,910 Total 1,108,123 $     $     743,526 $     (648,656) $    1,202,993 $ 246,154 $       956,839 Lease Liability
As of June 30, 2024, the City had 2 active leases. The leases have paymentsthat range from $3,953 to $4,503 and interest ratesthat range from 0.6480% to 3.4510%. As of June 30, 2024, the total combined value of the lease liability is $20,752, the total combined value of the short‐term lease liability is $4,614. The combined value of the right‐to‐use asset, as of June 30, 2024 of $40,692 with accumulated amortization of $19,486 is included with the right‐to‐use lease equipment in the capital assets note.

Annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2025 4,614 $      $        657 $     5,271
2026 4,775                    496        5,271
2027 4,942                    329        5,271
2028 5,115                    156        5,271
2029 1,306                      11        1,317
Totals 20,752 $    $     1,649 $   22,401
Subscription Liabilities
As of June 30, 2024, the City had 6 active subscriptions. The subscriptions have payments that range from $735 to $15,482 and interest rates that range from 1.8937% to 2.3100%. As of June 30, 2024, the total combined value of the subscription liability is $12,353, and the total combined value of the short‐term subscription liability is $7,562. The combined value of the right‐to‐use asset, as of June 30, 2024 of $76,790 with accumulated amortization of $58,719 is included with the right‐to‐use subscription in the capital assets note.

Annual debt service requirements are as follows:

Year ending
June 30, Principal Interest Total
2025 7,562 $      $        268 $     7,830
2026 4,791                    105        4,896
Totals 12,353 $    $        373 $   12,726

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐44‐

6. LONG‐TERM LIABILITIES, (continued)
B. Business‐type Activities
A summary of changes in the Business‐type Activities long‐term liabilities at June 30, 2024 is as follows:

Beginning Ending Due wi thi n Due more
Business‐type activities: bala nce Addi ti ons Deleti ons balance one yea r tha n one yea r Long‐term debt
Direct borrowings:
2017 Ins tallment agreement 4,703,595 $       ‐ $              $     (376,062) $      4,327,533 $      389,722 $          3,937,811 Loa n paya ble to SGVMWD 2,700,000          ‐                 ‐                          2,700,000         540,000             2,160,000 Subtotal long‐term debt 7,403,595          ‐                        (376,062)         7,027,533         929,722             6,097,811 Other long‐term liabilities
Compensa ted a bsences 256,810                    140,595        (114,963)            282,442           56,488                225,954 Subtotal other long‐term
lia bili ties 256,810                    140,595        (114,963)            282,442           56,488                225,954 Total long‐term lia bili ties 7,660,405 $       $     140,595 $     (491,025) $      7,309,975 $      986,210 $          6,323,765 2017 Installment Agreement $6,761,977 – direct borrowing In October 2017, the City entered into an installment agreement to issue debt totaling $6,761,977. The purpose of the issuance was to pay off the outstanding principal of the 1998 A Series and 2003 Series bonds. The interest and principal are due semi‐annually with payments due on April 30 and October 31 each year. Principal payments will be made through October 31, 2033 in amounts ranging from $158,711 to $266,253. Principal and interest payments range from $272,078 to $405,215. The interest rate of the debt is currently 4.10%.

The City has pledged all of the net water revenues(as described in the agreement) to the payment of the debt until paid in full. The current year debt service was $376,062 and the net revenues were $1,778,406.

In the event of default, the lender, at its option upon notice to the City, may declare the entire principal amount of the unpaid 2017 Installment Agreement and any accrued interest thereon to be accelerated and immediately due and payable, whereupon the same shall immediately become due and payable.

The outstanding balance is $4,327,533 at June 30, 2024.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐45‐

6. LONG‐TERM LIABILITIES, (continued)
B. Business‐type Activities (continued)
Annual debt service requirements on this debt are as follows:

Year ending
June 30, Principal Interest Total
2025 389,722 $            $           173,497 $           563,219 2026 403,878                            157,374              561,252 2027 418,549                            140,666              559,215 2028 433,752                            123,351              557,103 2029 449,508                            105,407              554,915 2030 ‐ 2034 2,232,124                         234,236           2,466,360 Totals 4,327,533 $         $           934,531 $        5,262,064 Loan Payable to San Gabriel Valley Municipal Water District $2,700,000 – direct borrowing The City has identified three water main infrastructure replacement projects. Therefore, the City entered into a loan agreement with the San Gabriel Valley Municipal Water District to fund a portion of the project cost in the amount up to $2,700,000. As of June 30, 2024, the City reported a loan payable of $2,700,000. Payments are due in ten annual installments beginning one year after the Notice of Completion is approved by City Council. The loan bears no interest unlessthere is an event of default in payment, at which time interest would begin to accrue at the rate of 6% per annum.

Annual debt service requirements on this debt are as follows:

Year ending
June 30, Principal
2025 540,000 $
2026 270,000
2027 270,000
2028 270,000
2029 270,000
2030 ‐ 2032 1,080,000
Totals 2,700,000 $

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐46‐

7. NET POSITION AND FUND BALANCES
A. Fund Balance Classification
In accordance with generally accepted accounting principles, the City’s fund balances are as follows:

General Target State American Non‐Major
Fund Grant Library Rescue Plan Act Governmental Funds Total Restricted for:

Public works $                    ‐ ‐ $                    ‐ $                    $                 2,418,017 $       2,418,017 Public safety 31,045                 ‐                       ‐                                             219,205              250,250 Community services/development                      ‐             294,137             120,028                    4,211,301           4,625,466 Streets projects                       ‐ ‐                       ‐                                             839,691              839,691 Culture and recreation                       ‐ ‐                       ‐                                             774,632              774,632 Section 115 Trust 421,774              ‐                       ‐                       ‐                                              421,774 Committed to:

Debt service                       ‐ ‐                       ‐                                                13,338                13,338 Unassigned 14,194,662         ‐                       ‐                       ‐                                        14,194,662 Total fund balance 14,647,481 $     $          294,137 $          120,028 $                 8,476,184 $     23,537,830 The City Council has adopted a minimum fund balance policy for the General Fund. The intent of the policy isto maintain a minimum unassigned fund balance. The policy requires 25% of General Fund expenditures be set aside. As of June 30, 2024, the amount set aside was $3,842,369 and is reported as unassigned fund balance.

B. Net Position Classification
In accordance with generally accepted accounting principles, the City’s restricted net position is as follows:

Description
Restricted:

Culture and recreation $          ‐ 774,632 $                   $         774,632 Development services          ‐ 4,625,466                               4,625,466 Public safety              ‐ 250,250                                   250,250 Public works          ‐ 3,257,708                               3,257,708 Section 115 Trust 442,481                            53,195             495,676 Total restricted net position 9,350,537 $       $            53,195 $      9,403,732 Governmental
Activities
Business‐type
Activities Total

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐47‐

7. NET POSITION AND FUND BALANCES, (continued)
C. Net Investment in Capital Assets
Net position for governmental activities and business‐type activities is classified as 1) net investment in capital assets, 2) restricted, or 3) unrestricted. Net position that was classified as net investment in capital assets as of June 30, 2024, was determined as follows:

Governmental
Activities
Capital assets, net of accumulated depreciation 186,460,529 $ Less capital related debt balance:

Lease and subscription liabilities                (33,105) Net investment in capital assets $   186,427,424
Total
Enterprise
Water Sewer Funds
Capital assets, net of accumulated depreciation 29,247,618 $       $        2,413,905 $      31,661,523 Less capital related debt balance:

Outstanding principal balance of 2017 Installment Agreement and Loan Payable to SGVMWD (7,027,533)           ‐                                  (7,027,533) Net investment in capital assets 22,220,085 $       $        2,413,905 $      24,633,990 Business‐type Activities

8. RISK MANAGEMENT
The City of Sierra Madre is exposed to variousrisks of lossrelated to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member entity obtains insurance coverage.

The City of Sierra Madre is a Member of the California Intergovernmental Risk Authority (CIRA), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims. Under the General Liability program, the City has a $25,000 retention limit similar to a deductible, with the Authority being responsible for losses above that amount up to $1 million. The Authority has additional coverage of $39 million in excess of its $1 million retention limit through affiliated risk management authorities. The Authority also provides $600 million aggregate property coverage to its members with such coverage provided by purchased insurance.

Liabilities of the member entity are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs).

The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example, from salvage or subrogation, are another component of the claims liability estimate.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐48‐

8. RISK MANAGEMENT, (continued)
The Authority covers workers’ compensation claims up to its self‐insurance limit of $500,000. Safety National and Gray Insurance Company provide excess coverage to statutory limits. Financial Statements of CIRA may be obtained from its administrative office located at 2330 E. Bidwell Street, Suite 150, Folsom, CA 95630; www.cira‐jpa.org or by calling (916) 927‐7727.

Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023‐24.

9. DEFERRED COMPENSATION PLAN
The City has made available to its employees a deferred compensation plan (Plan). The Plan permits employees to defer a portion of their salary until future years. All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts, and all income attributable to those amounts are held in such trust accounts for the exclusive benefit of the employee participants and their beneficiaries. The accumulated assets of the Plan are not required to be reported in the accompanying financial statements.

10. DEFINED BENEFIT PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost‐Sharing Multiple‐Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in five rate plans (two miscellaneous and three safety). 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 plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full‐time employment.  Members with five years of totalservice are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non‐duty disability benefits after 5 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.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐49‐

10. DEFINED BENEFIT PENSION PLAN, (continued)
A. General Information About the Pension Plan, (continued) The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plans’ provisions and benefits in effect at June 30, 2024 are summarized as follows:

Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for li fe monthly for life
Retirement age 50 ‐ 57 52 ‐ 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 1.0% to 2.5% Required employer contribution rates 14.92% 8.00%
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for li fe monthly for life
Retirement age 50 ‐ 55 50 ‐ 57
Monthly benefits, as a % of eligible compensation 2.4% to 3.0% 2.0% to 2.7% Required employer contribution rates 26.11% 14.50%
Miscellaneous
Safety
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer 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 contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2024 were $1,544,110. The actual employer payments of $1,712,415 made to CalPERS by the City during the measurement period ended June 30, 2023 differed from the City’s proportionate share of the employer’s contributions of $2,423,224 by $710,809, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost‐Sharing Multiple Employer Plan.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐50‐

10. DEFINED BENEFIT PENSION PLAN, (continued)
B. Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions.

Valuation date June 30, 2022
Measurement date June 30, 2023
Actuarial cost method Entry Age Acturial Cost Method
Asset valuation method Fair Value of Assets
Actuarial assumptions:

Discount rate
Inflation 2.30%
Salary increases Varies by Entry Age and Service
Mortality rate table (1)
Post retirement benefit increase

6.90%
Derived using CALPERS' membership
data for all Funds
The lesser of contract COLA or 2.30%
until Purchasing Power Protection
Allowance floor on purchasing
power applies, 2.3% thereafter.
(1) The mortality table used was developed based on CalPERS‐speci fic data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP‐2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐51‐

10. DEFINED BENEFIT PENSION PLAN, (continued)
B. Net Pension Liability, (continued)
Long‐term Expected Rate of Return
The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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

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

Asset class
Assumed asset
allocation Real return 1, 2
Global equity ‐ cap‐weighted 30.00% 4.54%
Global equity ‐ non‐cap‐weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage‐backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

Change of Assumptions
There were no assumption changesin 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long‐term expected rate of return, CalPERS took into account long‐term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐52‐

10. DEFINED BENEFIT PENSION PLAN, (continued)
B. Net Pension Liability, (continued)
Discount Rate
The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long‐term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

C. Proportionate Share of Net Pension Liability
The following table shows the Plans’ proportionate share of the net pension liability over the measurement period.

Plan Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Plan Net Pension
Liability / (Asset)
(c ) = (a) ‐ (b)
Balance at: 6/30/2022 (VD*) 63,827,851 $                $                    55,760,888 $                       8,066,963 Balance at: 6/30/2023 (MD*) 68,870,976                                          59,374,649                           9,496,327 Net Changes during 2022‐23 5,043,125                                               3,613,761                           1,429,364 Increase (decrease)
* Valuation Date (VD), Measurement Date (MD)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost‐Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐53‐

10. DEFINED BENEFIT PENSION PLAN, (continued)
C. Proportionate Share of Net Pension Liability, (continued) The City’s proportionate share of the net pension liability for the Plan as of the June 30, 2022 and 2023 measurement dates was as follows:

Misc. Safety Total
Proportion ‐ June 30, 2023 0.09588% 0.05211% 0.06984%
Proportion ‐ June 30, 2024 0.10509% 0.05674% 0.07612%
Change ‐ increase/(decrease) 0.00921% 0.00463% 0.00628% Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage‐point lower (5.9 percent) or 1 percentage‐point higher (7.9 percent) than the current rate:

Discount rate ‐1% Current discount rate Discount rate +1%

5.90% 6.90% 7.90%
Net Pension Liability / (Asset) ‐ Misc. 10,454,933 $              $                      5,255,140 $                  975,261 Net Pension Liability / (Asset) ‐ Safety 8,414,814                                             4,241,187                      828,950 Net Pension Liability / (Asset) ‐ Total 18,869,747 $              $                      9,496,327 $               1,804,211 Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between projected
and actual earnings on pension plan
investments
5 year straight‐line amortization
All other amounts Straight‐line amortization over the expected average remaining service lives (EARSL) of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost‐Sharing Multiple‐Employer Plan (PERF C).

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐54‐

10. DEFINED BENEFIT PENSION PLAN, (continued)
C. Proportionate Share of Net Pension Liability, (continued) The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2022), the City’s net pension liability was $8,066,963. For the measurement period ending June 30, 2023 (the measurement date), the City incurred a pension expense of $4,041,083.

As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred outflows
of resources
Deferred inflows
of resources
Changes of assumptions $                 ‐ 564,798 $
Di fferences between expected and actual
experience                   579,842                  68,302 Di fferences between projected and actual
investment earnings                 ‐ 1,431,259
Di fferences between employer's contributions
and proportionate share of contributions                   119,140            1,638,874 Change in employer's proportion                2,965,708                  85,802 Pension contributions made subsequent to
measurement date                 ‐ 1,544,110
Totals 7,204,857 $              $         1,792,978
The amounts above are net of outflows and inflows recognized in the 2022‐23 measurement period expense.

Contributions subsequent to the measurement date of $1,544,110 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal year ending June 30: Misc. Safety Total
2025 968,880 $                    $                          727,451 $               1,696,331 2026 620,705                                                   470,036                  1,090,741 2027 589,702                                                   450,380                  1,040,082 2028 24,415                                                       16,200                        40,615 2029                                ‐ ‐                                       ‐ Thereafter                                ‐ ‐                                       ‐ $               2,203,702 $                      1,664,067 $               3,867,769

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐55‐

11. DEFINED CONTRIBUTION PENSION PLAN
E. Payable to the Pension Plan
At June 30, 2024, the City reported a payable of $10,351 for the outstanding amount of contributions to the pension plan required for the year then ended.

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 as part of the Accumulation Program for Part‐time and Limited‐service Employees (The APPLE Plan) 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; the employee pays the entire 7.5% of the contribution. The contributions for each employee (and interest earned by the accounts) are fully vested immediately. The 457(b) pension plan for part‐time employees was implemented in response to the Omnibus Reconciliation Act of 1990 (OBRA 90) that required all part‐ time employees working for governmental agencies to include these employees in Social Security (Old Age Security and Disability Insurance ‐ OASDI) or a qualified alternative to Social Security covered under section IRC 3121.

For the year ended June 30, 2024, the City’s payroll covered by the plan was $273,741. The employees contributed 100% of the contributions.

12. COMMITMENTS AND CONTINGENCIES
A. Grant Audits
The City participates in Federal and State grant programs. No cost disallowance is expected, as a result of these audits; however, these programs are subject to further examination by the grantors. Expenditures, if any, which may be disallowed by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

B. Litigation
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City beyond that already accrued in the basic financial statements. Additionally, City management believes that sufficient resources are available to the City to cover any potential losses, should an unfavorable outcome arise.

C. Compliance with Laws and Regulations
The City has complied with the California State Controller’s requirements by filing its audited financial statements in a timely manner. Management is working to prepare and file the audited financial statements to fulfill such regulatory requirements.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐56‐

13. OTHER POST EMPLOYMENT EMPLOYEE BENEFITS
Plan Description
The City administers an agent‐multiple employer defined benefit plan which provides medical benefits to eligible retirees and their spouses. Medical coverage is currently provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This coverage requires the employee to satisfy the requirements for retirement under CalPERS: either (a) attainment of age 50 (age 52, if new to PERS on or after January 1, 2013) with 5 years of State or public City service or (b) approved disability retirement. The Plan does not issue separate financial statements.

Benefits Provided
The City has participated in the CalPERS medical program since 1995 for all employees other than Police Officer’s Association (POA) employees, and since 1999 for POA employees. As such, the City is obligated to contribute toward the cost of retiree medical coverage forthe retiree’s and spouse’slifetime so long asthey remain eligible for and covered by this medical program. The City provides additional benefits based on employee agreements beyond those required under PEMHCA. The following is a summary of these benefits:
 All employees who retire from the City (including disability retirement) and continue coverage in the CalPERS medical program are eligible for the benefit provided in the PEMHCA resolutions.  Those resolutions provide for the City to contribute toward retiree premiums by multiplying together the following items: 5% times the number of prior years the City has been contracted with PEMHCA times The monthly contracted PEMCHA contribution the employer makes towards active employee health benefits, which was $157 per month in 2024.

The City’s monthly PEMCHA contribution toward health plan benefits for retirees as of the June 30, 2023 measurement date is $157 for all retirees, since all employee groups have been contracted with CalPERS for over 20 years.

In addition to the benefits described above, the City also provides the following monthly subsidy toward retiree (single coverage) medical premiums until the retiree reaches age 65.  For CEA (and other non‐POA) employees hired before October 15, 1995 and POA employees hired on or before December 22, 2011 who meet the requirements for CalPERS retirement (including industrial disability retirement), 5% times the number of years worked for the City (up to a maximum of 100%) times the lowest premium in Region 3.
 For CEA (and other non‐POA) employees hired on or after October 15, 1995 and POA employees hired after December 22, 2011 who retire (including disability retirement) at age 60 or older with at least 30 years of service with the City, 100% of the actual premium in Region 3.

The lowest cost HMO plan premium in the Region 3 available to retirees in 2024 is the Health Net Salud y Mas plan with a monthly premium of $630.13

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐57‐

13. OTHER POST EMPLOYMENT EMPLOYEE BENEFITS, (continued) Employee covered
As of the June 30, 2023 valuation, the following current and former employees are covered by the benefit terms under the plan:

Active employees 94
Inactive employees entitle to but not receiving benefits 22 Inactive employees or beneficiaries currently receiving benefits 22 Total 138
Contributions
The contribution requirements of plan members and the City are established and may be amended by the City Council.

The City makes contributions to eligible retirees for their medical plan premiums when the retiree enrolls in a City sponsored health plan. The current monthly amount paid by the City varies depending on the retiree’s bargaining unit at retirement. These amounts do not increase in future years to account for inflation. The City provided amounts are detailed in the Summary of Principal Plan Provisions. For the fiscal year ended June 30, 2024, the City’s contributions to the trust were $54,122, cash contributions were $61,649 in payments for premiums and $33,935 in implicit subsidy payment. The City voluntarily prefunds its annual contribution requirement (i.e. to set aside funds in advance of when medical premiums become due).

Net OPEB liability/(asset)
The City’s net OPEB liability/(asset) was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability/asset was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:

Discount rate 5.60%
Inflation 2.50%
Salary increases 3.00%
Mortality rate MacLeod Watts Scale 2022 applied generationally Healthcare trend 6.5% to 4.9% for 2024 and beyond
Changes of Assumptions
Trust rate of return and
discount rate For accounting purposes: Decreased from 5.65% to 5.60%.

Demographic Assumptions Updated demographic assumptions from 2019 to the 2021 CalPERS experience study.

Healthcare Trend Updated to the Getzen model which was published by the Society of Actuaries.

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐58‐

13. OTHER POST EMPLOYMENT EMPLOYEE BENEFITS, (continued) Discount rate
The discount rate used to measure the total OPEB liability/(asset) was 5.60% percent. The discount rate is the expected long‐term return on trust assets. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.

The following table reflectslong‐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.

Asset class
Current target
allocation
Expected long‐term
rate of return
Global equity 34.0% 6.80%
Fixed income 41.0% 4.50%
REIT's 17.0% 6.20%
Treasury inflation
protected securities

5.0% 3.60%
Commodities 3.0% 3.50%
Total 100%
Changes in the net OPEB liability/(asset)
The changes in the net OPEB liability for the plan are as follows:

Net OPEB
Total OPEB Plan fiduciary liability/(asset)
liability (a) net position (b) (a)‐(b)=(c)
Balance at June 30, 2023
(measurement date June 30, 2022) 2,244,077 $        $       2,093,939 $           150,138 Changes recognized for the measurement period:

Service cost 138,183               ‐                                     138,183 Interest cost 131,943               ‐                                     131,943 Di fference between the expected
and the actual experience (14,531)                              (43,714)                29,183 Changes of assumptions 6,215                   ‐                                          6,215 Employer contributions                       ‐                93,977               (93,977) Net investment income                       ‐              118,291             (118,291) Benefit payments (93,977)                               ‐ (93,977) Administrative expenses                       ‐                     (600)                      600 Net changes              167,833                73,977                93,856 Balance at June 30, 2024
(measurement date June 30, 2023) 2,411,910 $        $       2,167,916 $           243,994

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐59‐

13. OTHER POST EMPLOYMENT EMPLOYEE BENEFITS, (continued) Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:

Discount rate
1% decrease Current rate 1% increase
Net OPEB liability/(asset) 536,872 $                 $                243,994 $                   (1,469) Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
1% decrease Current rate 1% increase
Net OPEB liability/(asset) (37,786) $                  $                243,994 $                588,683 Healthcare Cost Trend Rates
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

The recognition period differs depending on the source of the gain or loss:

Di fference between projected and actual
earnings 5 year straight‐line amortization
All other amounts Straight line recognition over the expected average remaining service li fetime (EARSL)
(10.36 years at June 30, 2023)

CITY OF SIERRA MADRE
Notes to Basic Financial Statements
For the year ended June 30, 2024
‐60‐

13. OTHER POST EMPLOYMENT EMPLOYEE BENEFITS, (continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $156,480. As of fiscal year ended June 30, 2024, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of resources of resources
Changes in assumptions 178,744 $                 $                  93,863 Di fferences between expected
and actual experience 9,075                                           225,153 Net di fference between projected and
actual earnings on investments 205,508                    ‐ Contributions subsequent to the
measurement date 149,706                    ‐
Totals 543,033 $                 $                319,016 The $149,706 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability / (asset) in the upcoming fiscal year. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

For the fiscal Recognized net
year ending deferred outflows
June 30, (inflows) of resources
2025 4,724 $
2026 1,051
2027 71,686
2028 (17,767)
2029 (14,123)
Thereafter 28,740
$                        74,311
City of Sierra Madre, California
Village of the Foothills

Required Supplementary Information
For the Year Ended
June 30, 2024
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CITY OF SIERRA MADRE
Required Supplementary Information
For the year ended June 30, 2024
‐61‐

BUDGETS AND BUDGETARY ACCOUNTING
The City adopts an annual budget prepared on the modified accrual basis of accounting for governmental funds. The City Manager or a designee is authorized to transfer budgeted amounts between the accounts of any department.

Revisions that alter the total appropriations of any department or fund may be approved by the City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year.

The City did not adopt budgets for the following funds: Homeland Security Fund, Officer Wellness and Mental Health Program, Fane/Winwood Assessment District, Development Fees Art in Public Places, DUI Enforcement, Community Arts Commission, Recreation Department Donations, SM Community Foundation, YAC‐Youth Activity Center, County Prop A Park Development, CA Beverage Container Grant, Community Development Block Grant, Local Historical Society, and Low & Moderate Income Housing Asset Fund.

The remainder of this page left intentionally blank.

CITY OF SIERRA MADRE
Required Supplementary Information
General Fund Budgetary Comparison Schedule
For the year ended June 30, 2024
‐62‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Property taxes 8,598,800 $        $       8,686,300 $    8,741,395 $           55,095 Other taxes 5,160,800                      5,044,800       5,284,445            239,645 Charges for services 773,800                            866,000          956,736              90,736 Intergovernmental 148,000                            194,000          269,162              75,162 Licenses and permits 1,395,000                      1,706,000       1,838,502            132,502 Fines and forfeitures 108,000                              68,000             89,175              21,175 Investment income 20,000                              350,000       1,051,748            701,748 Miscellaneous 56,000                              363,000          485,418            122,418 Total revenues 16,260,400                17,278,100     18,716,581         1,438,481 Expenditures:

Current:

General government:

Administrative Services 3,358,830 3,412,530 3,373,498 39,032 Elected and Appointed 432,970 410,670 386,705 23,965
Total general government 3,791,800                      3,823,200       3,760,203              62,997 Public safety:

Police 4,884,400                      4,936,400       4,860,378              76,022 Fire           3,636,564           3,426,014       3,438,944             (12,930) Total public safety 8,520,964                      8,362,414       8,299,322              63,092 Public works 637,510                            688,660          574,970            113,690 Development 1,510,850            1,617,850 1,600,931                     16,919 Culture and recreation:

Community Services 455,200                            400,200          438,108             (37,908) Library Services 703,800                            727,800          720,989                 6,811 Total culture and recreation 1,159,000                      1,128,000       1,159,097             (31,097) Debt Service:

Principal 8,419                                      8,419               9,487               (1,068) Interest 467                                            467                   ‐ 467 Total expenditures 15,629,010                15,629,010     15,404,477            224,533 Excess (deficiency) of revenues
over (under) expenditures 631,390                         1,649,090       3,312,104         1,663,014 Other financing sources (uses):

Transfers out (711,140)                          (723,704)         (684,025)              39,679 Total other financing sources (uses) (711,140)                          (723,704)         (684,025)              39,679 Net change in fund balance (79,750)                             925,386       2,628,079         1,702,693 Fund balance, beginning of year 12,019,402                12,019,402      ‐ 12,019,402 Fund balance, end of year 11,939,652 $      $     12,944,788 $ 14,647,481 $     1,702,693

CITY OF SIERRA MADRE
Required Supplementary Information
Target State Grants Library Fund Budgetary Comparison Schedule For the year ended June 30, 2024
‐63‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 10,000,000 $ $ 10,000,000 $      787,888 $  (9,212,112) Investment income                   ‐          300,000          271,751           (28,249) Total revenues 10,000,000          10,300,000      1,059,639     (9,240,361) Expenditures:

Current:

Public works 10,000,000            9,935,551          787,888      9,147,663 Total expenditures 10,000,000            9,935,551          787,888      9,147,663 Excess (deficiency) of revenues
over (under) expenditures                ‐       364,449       271,751        (92,698) Net change to fund balance                   ‐          364,449          271,751           (92,698) 22,386             22,386             ‐ 22,386
Fund balance, end of year 22,386 $          $       386,835 $      294,137 $       (92,698) Fund balance, beginning of year

CITY OF SIERRA MADRE
Required Supplementary Information
American Rescue Plan Act Fund Budgetary Comparison Schedule For the year ended June 30, 2024
‐64‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental $                ‐ ‐ $                $      701,088 $      701,088 Investment income                   ‐            60,000            68,709              8,709 Total revenues                   ‐            60,000          769,797          709,797 Expenditures:

Current:

General government                    ‐ ‐                               56,480           (56,480) Public works 1,845,012            1,845,012          644,608      1,200,404 Total expenditures 1,845,012            1,845,012          701,088      1,143,924 Excess (deficiency) of revenues
over (under) expenditures (1,845,012) (1,785,012)         68,709   1,853,721 Net change to fund balance (1,845,012)          (1,785,012)            68,709      1,853,721 51,319            51,319             ‐ 51,319
Fund balance, end of year (1,793,693) $   $  (1,733,693) $      120,028 $   1,853,721 Fund balance, beginning of year

CITY OF SIERRA MADRE
Required Supplementary Information
For the year ended June 30, 2024
‐65‐

1. DEFINED BENEFIT PENSION PLAN – PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS) Schedule of Employer’s Proportionate Share of the Plan’s Net Pension Liability and related Ratios as of the Measurement Date – Last 10 Years
Measurement Date
Employer's
Proportion of the
Collective Net
Pension Liability /
(Asset)1
Employer's
Proportionate
Share of the
Collective Net
Pension
Liability
Employer's
Covered
Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension
Liability as a
percentage of
the Employer's
Covered
Payroll
Pension Plan's
Fiduciary Net
Position as a
percentage of
the Total
Pension
Liability/Asset
June 30, 2014 9,021,417 $           0.14780% 4,688,122 $    192.43% 77.90% June 30, 2015 10,143,930            0.14779% 4,841,779        209.51% 75.43% June 30, 2016 12,331,116            0.14251% 4,869,024        253.26% 71.10% June 30, 2017 13,878,779            0.13995% 5,243,636        264.68% 70.40% June 30, 2018 12,568,021            0.13042% 4,566,971        275.19% 74.85% June 30, 2019 9,173,681               0.08953% 4,773,023        192.20% 82.91% June 30, 2020 6,798,937               0.06249% 5,315,808        127.90% 87.87% June 30, 2021 (2,304,014)             ‐0.04260% 5,789,730        ‐39.79% 103.89% June 30, 2022 8,066,963               0.06984% 6,343,997        127.16% 87.36% June 30, 2023 9,496,327               0.07612% 6,846,964        138.69% 86.21% 1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool

CITY OF SIERRA MADRE
Required Supplementary Information
For the year ended June 30, 2024
‐66‐

1. DEFINED BENEFIT PENSION PLAN – PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS), (continued) Schedule of Plan Contributions – Last 10 Years
Fiscal year
Actuarially
Determined
Contribution
Contributions
in Relation to
the Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered
payroll
Contributions
as a
Percentage of
Covered
Payroll
June 30, 2015 1,004,211 $   $    ‐ (1,004,211) $               $   4,841,779 20.74% June 30, 2016 1,175,439            ‐ (1,175,439)                         4,869,024 24.14% June 30, 2017 1,272,198            ‐ (1,272,198)                         5,243,636 24.26% June 30, 2018 1,418,218            ‐ (1,418,218)                         4,566,971 31.05% June 30, 2019 1,585,121           (6,585,121)    (5,000,000)       4,773,023 137.97% June 30, 2020 1,107,313           (4,107,313)    (3,000,000)       5,315,808 77.27% June 30, 2021 1,046,555           (2,546,555)    (1,500,000)       5,789,730 43.98% June 30, 2022 1,202,469            ‐ (1,202,469)                         6,343,997 18.95% June 30, 2023 1,372,415           (1,712,415)       (340,000)       6,846,964 25.01% June 30, 2024 1,354,110           (1,544,110)       (190,000)       7,971,708 19.37% Notes to Schedule:

Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long‐term expected rate of return, CalPERS took into account long‐term market return expectations as well as the expected pension fund cash flows.

Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long‐term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five‐year ramp‐up and ramp‐down on UAL bases attributable to assumption changes and non‐investment gains/losses. The new policy also does not utilize a five‐year ramp‐down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

CITY OF SIERRA MADRE
Required Supplementary Information
For the year ended June 30, 2024
‐67‐

2. OTHER POST EMPLOYMENT BENEFITS
Schedule of Change’s Net OPEB Liability and Related Ratios as of the Measurement Date – Last 10 Years* Measurement date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability
Service cost 138,183 $        $       113,161 $         96,434 $         93,625 $       113,216 $       109,652 $       107,444 Interest cost 131,943                    128,999          127,156          120,510          139,838          130,212          132,432 Plan experience (14,531)            ‐                                ‐ 12,735                             ‐ (352,670)                            (186,345) Changes in assumptions 6,215                         182,231          ‐ (131,711)                                ‐ 47,406                               13,329 Benefit payments (93,977)                    (134,288)         (113,325)         (111,228)         (105,241)           (95,572)         (108,541) Net change in Total OPEB Liability          167,833          290,103             (8,711)          102,907         (157,451)          144,292           (41,681) Total OPEB Liability ‐ beginning       2,244,077       1,953,974       1,962,685       1,859,778       2,017,229       1,872,937       1,914,618 Total OPEB Liability ‐ ending (a)       2,411,910       2,244,077       1,953,974       1,962,685       1,859,778       2,017,229       1,872,937 Plan Fiduciary Net Position
Contribution ‐ employer 93,977                      134,288          113,325          150,528          163,349            95,572          108,541 Expected investment income/experience 118,291                    154,513          393,718          101,166          118,856            98,236            99,406 Investment experience (43,714)                     ‐ (455,814)                    ‐                    ‐                    ‐                               15,348 Benefit payments (93,977)                    (134,288)         (113,325)         (111,228)         (105,241)           (95,572)         (108,541) Administrative expense (600)                                  (606)                 (729)                 (920)                 (363)             (2,941)                 (782) Net change in Plan Fiduciary Net Position            73,977         (301,907)          392,989          139,546          176,601            95,295          113,972 Plan Fiduciary Net Position ‐ beginning       2,093,939       2,395,846       2,002,857       1,863,311       1,686,710       1,591,415       1,477,443 Plan Fiduciary Net Position ‐ ending (b)       2,167,916       2,093,939       2,395,846       2,002,857       1,863,311       1,686,710       1,591,415 Net OPEB Liability (asset) ‐ ending (a) ‐ (b) $       243,994 $       150,138 $     (441,872) $        (40,172) $          (3,533) $       330,519 $       281,522 Plan fiduciary net position as a percentage
of the total OPEB liability 89.88% 93.31% 122.61% 102.05% 100.19% 83.62% 84.97% Covered‐employee payroll 8,852,694 $    $   8,203,079 $   7,686,509 $   6,061,061 $   5,884,525 $   5,537,332 $   4,937,800 Net OPEB liability (asset) as a percentage
of covered‐employee payroll 2.76% 1.83% ‐5.75% ‐0.66% ‐0.06% 5.97% 5.70% Notes to schedule: The following assumptions werechanged from the prior valuation:Discountrate:decreased from 5.65% to

5.60% Demographic assumptions:Mortality rates usethe 2021 experience study. General inflation rate:same as that of prior year 2.5% Salary increase: Same as that of prior year 3.0% Medical trend: updated to useGetzen Model 2023 published by the Society of Actuaries
*Historical information isrequired only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.

CITY OF SIERRA MADRE
Required Supplementary Information
For the year ended June 30, 2024
‐68‐

2. OTHER POST EMPLOYMENT BENEFITS, (continued)
Schedule of Plan Contributions – Last 10 Years*
Fiscal year
Actuarially
Determined
Contributions
(ADC)
Contributions
in relation to
the ADC
Contribution
deficiency
(excess)
Covered‐
employee
payroll
Contributions
as a
percentage of
covered‐
employee
payroll
June 30, 2018 153,086 $             $        (95,572) $      57,514 $ 5,537,332 1.73% June 30, 2019 145,849                        (163,349)        (17,500)     5,884,525 2.78% June 30, 2020 150,528                         ‐ (150,528)                     6,061,061 2.48% June 30, 2021 100,910                        (113,325)        (12,415)     7,686,509 1.47% June 30, 2022 103,663                        (134,288)        (30,625)     8,203,079 1.64% June 30, 2023 90,289                             (93,977)           (3,688)     8,852,694 1.06% June 30, 2024 149,706                         ‐ (149,706)                     9,779,206 1.53% Notes to schedule:

Methods and assumptions used to determine contributions:

Valuation date June 30, 2023
Funding method Entry age normal cost, level % of pay
Asset valuation Fair value of assets
Discount Rate 5.60%
Inflation 2.50%
Salary Increases 3.00%
Mortality Rate CalPERS 2021 Experience Study
Healthcare Trend Rate 6.5% in 2024 stepping down to 3.9% by 2075 Valuation Date: Actuarially determined contribution rates are calculated as of June 30, one year prior to the end of the fiscal year in which contributions are reported. Benefits are not based on a measure of pay so covered‐employee payroll is issued.
*Fiscal year 2017‐18 was the first year of implementation. Additional years to be presented as information becomes available.

City of Sierra Madre, California
Village of the Foothills

Supplementary Information
For the Year Ended
June 30, 2024
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CITY OF SIERRA MADRE
Combined Balance Sheet
Non‐Major Governmental Funds by Fund Type
June 30, 2024
‐69‐
Special
Revenue Funds
Capital
Projects Funds
Citywide Debt
Service Fund
Total Non‐Major
Governmental
Funds
Assets:

Cash and investments 6,401,574 $      $     1,013,482 $           13,338 $         7,428,394 Receivables:

Accounts 168,370             ‐                      ‐                                     168,370 Taxes 62,814               ‐                      ‐                                       62,814 Due from other agencies 1,673                  ‐                      ‐                                         1,673 Prepaid 1,293                  ‐                      ‐                                         1,293 Land held for resale                     ‐          ‐ 1,500,000                                 1,500,000 Total assets 6,635,724 $      $     2,513,482 $           13,338 $         9,162,544 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable 99,193 $            $          ‐ 186,734 $                   $            285,927 Accrued payroll and
related liabilities 14,685                                ‐ 8,000                                       22,685 Due to other funds 18,308               ‐                      ‐                                       18,308 Deposits 52,940                                ‐ 2,500                                       55,440 Unearned revenue 289,000             ‐                      ‐                                     289,000 Total liabilities 474,126                         ‐ 197,234                                     671,360 Deferred inflows of resources:

Unavailable revenues 15,000               ‐                      ‐                                       15,000 Total deferred inflows of resources 15,000               ‐                      ‐                                       15,000 Fund balances (deficit):

Restricted 6,146,598                   ‐ 2,316,248                                 8,462,846 Committed                      ‐ ‐                                   13,338                  13,338 Total fund balances 6,146,598                  2,316,248              13,338            8,476,184 Total Liabilities, Deferred Inflows
of Resources, and Fund Balances 6,635,724 $      $     2,513,482 $           13,338 $         9,162,544

CITY OF SIERRA MADRE
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Governmental Funds by Fund Type
For the year ended June 30, 2024
‐70‐
Special
Revenue Funds
Capital
Projects
Funds
City‐wide Debt
Service Fund
Total Non‐Major
Governmental
Funds
Revenues:

Property taxes 118,006 $          ‐ $                ‐ $                  $            118,006 Other taxes
Charges for services 468                     ‐                    ‐                                            468 Intergovernmental 2,085,024          ‐                    ‐                                2,085,024 Licenses and permits 342,928             ‐                    ‐                                    342,928 Investment income            211,433             ‐ 18,118                                    229,551 Miscellaneous 176,823             ‐                    ‐                                    176,823 Total revenues 2,934,682                      ‐ 18,118                                     2,952,800 Expenditures:

Current:

Public safety 250,937             ‐                    ‐                                    250,937 Public works 1,764,118                    ‐ 449,604                                2,213,722 Development 23,205               ‐                    ‐                                      23,205 Cul ture and recreation 98,114               ‐                    ‐                                      98,114 Total expenditures 2,136,374                    ‐ 449,604                                2,585,978 Excess (deficiency) of revenues
over (under) expenditures 798,308                     ‐ (431,486)                                    366,822 Other financing sources (uses):

Transfers in 66,905                         ‐ 620,000                                    686,905 Transfers out (25,000)              ‐                    ‐                                     (25,000) Total other financing sources (uses) 41,905                         ‐ 620,000                                    661,905 Net change to fund balances 840,213                       ‐ 188,514                                1,028,727 Fund balances, beginning of year 5,306,385               2,127,734             13,338            7,447,457 Fund balances, end of year 6,146,598 $      $   2,316,248 $          13,338 $         8,476,184

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Special Revenue Funds
June 30, 2024
‐71‐
Grant Funds
Assessment
Funds
Other Special
Revenue Funds
Total Special
Revenue Funds
Assets:

Cash and investments 319,530 $             $        1,278,462 $        4,803,582 $        6,401,574 Receivables:

Accounts                         ‐ ‐                                       168,370               168,370 Taxes                        ‐                    2,785                 60,029                 62,814 Due from other agencies                         ‐ ‐                                            1,673                    1,673 Prepaid                         ‐ ‐                                            1,293                    1,293 Total assets 319,530 $             $        1,281,247 $        5,034,947 $        6,635,724 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable 1,225 $                 $              11,231 $              86,737 $              99,193 Accrued payroll and
related liabilities                         ‐ ‐                                         14,685                 14,685 Due to other funds                         ‐ ‐                                         18,308                 18,308 Deposits                         ‐ ‐                                         52,940                 52,940 Unearned revenue 289,000                ‐                         ‐                                       289,000 Total liabilities 290,225                                11,231               172,670               474,126 Deferred inflows of resources:

Unavailable revenues 15,000                  ‐                         ‐                                         15,000 Total deferred inflows of resources 15,000                  ‐                         ‐                                         15,000 Fund balances (deficit):

Restricted 14,305                             1,270,016            4,862,277            6,146,598 Total fund balances 14,305                             1,270,016            4,862,277            6,146,598 Total liabilities, deferred inflows
of resources, and fund balances 319,530 $             $        1,281,247 $        5,034,947 $        6,635,724 This page intentionally left blank

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Special Revenue Funds
For the year ended June 30, 2024
‐72‐
Grant Funds
Assessment
Funds
Other Special
Revenue Funds
Total Special
Revenue Funds
Revenues:

Property taxes $               ‐ $       ‐ 118,006 $                  $          118,006 Charges for services                   ‐ ‐                                      468                     468 Intergovernmental 12,145             ‐                          2,072,879          2,085,024 Licenses and permits                   ‐ ‐                              342,928             342,928 Investment income            11,265           46,046            154,122             211,433 Miscellaneous 11,445             ‐                              165,378             176,823 Total revenues 34,855                     164,052        2,735,775          2,934,682 Expenditures:

Current:

Public safety                   ‐ ‐                              250,937             250,937 Public works 12,145                     302,835        1,449,138          1,764,118 Development                   ‐ ‐                                23,205               23,205 Culture and recreation                   ‐ ‐                                98,114               98,114 Total expenditures 12,145                     302,835        1,821,394          2,136,374 Excess (deficiency) of revenues
over (under) expenditures 22,710                    (138,783)            914,381             798,308 Other financing sources (uses):

Transfers in                   ‐ ‐                                66,905               66,905 Transfers out                   ‐ ‐                               (25,000)              (25,000) Total other financing sources (uses)                   ‐ ‐                                41,905               41,905 Net change in fund balances 22,710                    (138,783)            956,286             840,213 Fund balances (deficit), beginning of year (8,405)                   1,408,799        3,905,991          5,306,385 Fund balances (deficit), end of year 14,305 $         $  1,270,016 $     4,862,277 $      6,146,598

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Special Revenue Funds – Grants
June 30, 2024
‐73‐
Library Grant
Homeland
Security Fund
Officer
Wellness and
Mental Health
Program
Total Special
Revenue‐Grant
Funds
Assets:

Cash and investments 303,886 $          ‐ $                   $           15,644 $            319,530 Total assets 303,886 $          ‐ $                   $           15,644 $            319,530 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable 1,225 $              ‐ $                   ‐ $                   $                1,225 Unearned revenue 289,000             ‐                      ‐                                    289,000 Total liabilities 290,225             ‐                      ‐                                    290,225 Deferred inflows of resources:

Unavailable revenues                      ‐ ‐                                   15,000                 15,000 Total deferred inflows of resources                      ‐ ‐                                   15,000                 15,000 Fund balances:

Restricted 13,661               ‐                                         644                 14,305 Total fund balances 13,661               ‐                                         644                 14,305 Total liabilities, deferred inflows
of resources, and fund balances 303,886 $          ‐ $                   $           15,644 $            319,530

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Special Revenue Funds – Grants
For the year ended June 30, 2024
‐74‐
Library Grant
Homeland
Security Fund
Officer
Wellness and
Mental Health
Program
Total Special
Revenue‐Grant
Funds
Revenues:

Intergovernmental 12,145 $            ‐ $                   ‐ $                   $             12,145 Investment income 10,732               ‐                                         533                 11,265 Miscellaneous                     ‐               ‐ 11,445                                      11,445 Total revenues 22,877                            11,445                    533                 34,855 Expenditures:

Current:

Public works 12,145               ‐                      ‐                                      12,145 Total expenditures 12,145               ‐                      ‐                                      12,145 Excess (deficit) of revenues
over (under) expenditures 10,732                            11,445                    533                 22,710 Net change to fund balances 10,732                            11,445                    533                 22,710 Fund balances (deficit), beginning of year 2,929                              (11,445)                    111                  (8,405) Fund balances (deficit), end of year 13,661 $            ‐ $                   $                 644 $             14,305

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Special Revenue Funds – Assessments
June 30, 2024
‐75‐
Bonita Sewer
Assessment
District
Fane/Winwood
Assessment
District
Lighting
District #1
Sewer
Assessment
District
Assets:

Cash and investments 90,517 $          $              8,435 $      551,466 $         44,753 Taxes receivable                    ‐ ‐                       ‐                                     646 Total assets 90,517 $          $              8,435 $      551,466 $         45,399 Liabilities and Fund Balances:

Liabilities:

Accounts payable $                ‐ ‐ $                    $               ‐ 200 $ Total liabilities                    ‐ ‐                                         ‐ 200 Fund balances:

Restricted 90,517                              8,435          551,266            45,399 Total fund balances 90,517                              8,435          551,266            45,399 Total liabilities and fund balances 90,517 $          $              8,435 $      551,466 $         45,399 ‐76‐
Sierra Madre
CFD
Downtown
Landscaping
and Lighting
Maintenance
District
Total Special
Revenue‐
Assessment
Funds
$         89,626 $      493,665 $        1,278,462
‐              2,139                   2,785
$         89,626 $      495,804 $        1,281,247
$               ‐ $         11,031 $             11,231 ‐            11,031                 11,231
89,626          484,773           1,270,016
89,626          484,773           1,270,016
$         89,626 $      495,804 $        1,281,247

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Special Revenue Funds – Assessments
For the year ended June 30, 2024
‐77‐
Bonita Sewer
Assessment
District
Fane/Winwood
Assessment
District
Lighting
District #1
Sewer
Assessment
District
Revenues:

Property taxes 10,290 $          ‐ $                    ‐ $                $           7,037 Investment income              2,873                     287            18,843              1,408 Total revenues 13,163                                 287            18,843              8,445 Expenditures:

Current:

Public works                    ‐ ‐                                     ‐ 2,366 Total expenditures                    ‐ ‐                                     ‐ 2,366 Excess (deficiency) of revenues
over (under) expenditures 13,163                                 287            16,477              8,445 Net change to fund balances 13,163                                 287            16,477              8,445 Fund balances, beginning of year 77,354                              8,148          534,789            36,954 Fund balances (deficit), end of year 90,517 $          $              8,435 $      551,266 $         45,399 ‐78‐
Sierra Madre
CFD
Downtown
Landscaping
and Lighting
Maintenance
District
Total Special
Revenue‐
Assessment
Funds
$           6,845 $         93,834 $           118,006
2,913            19,722                 46,046
9,758          113,556              164,052
‐          300,469              302,835
‐          300,469              302,835
9,758        (186,913)             (138,783)
9,758        (186,913)             (138,783)
79,868          671,686           1,408,799
$         89,626 $      484,773 $        1,270,016

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Special Revenue Funds – Other
June 30, 2024
‐79‐
Development
Impact Fees
Development
Fees Art in
Public Places
DUI
Enforcement
Police
Department
Donations
Public Safety
Augmentation
Fund
Assets:

Cash and investments 1,112,683 $    $         26,888 $           1,243 $         41,184 $         130,921 Receivables:

Accounts                    ‐ ‐                    ‐                    ‐                    ‐ Taxes                    ‐ ‐                    ‐                    ‐                                 29,902 Due from other agencies                    ‐ ‐                    ‐                    ‐                    ‐ Prepaid                    ‐ ‐                    ‐                    ‐                    ‐ Total assets 1,112,683 $    $         26,888 $           1,243 $         41,184 $         160,823 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable $                ‐ ‐ $                ‐ $                ‐ $                ‐ $ Accrued payroll and
related liabilities 2,454               ‐                    ‐                    ‐                                    4,001 Due to other funds                    ‐ ‐                    ‐                    ‐                    ‐ Deposits 50,780             ‐                    ‐                    ‐                    ‐ Total liabilities 53,234             ‐                    ‐                    ‐                                    4,001 Fund balances (deficit):

Restricted 1,059,449             26,888            1,243          41,184          156,822 Total fund balances 1,059,449                  26,888              1,243            41,184            156,822 Total liabilities, deferred inflows
of resources, and fund balances 1,112,683 $    $         26,888 $           1,243 $         41,184 $         160,823 ‐80‐
State COPS
Fire
Department
Donations
Community
Arts
Commission
Recreation
Department
Donations
Local
Transportation
Prop A Open Space Senior Center
$         17,309 $         11,260 $           6,127 $         13,269 $         837,325 $      196,208 $      224,430 ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                                      ‐ 840                    ‐                      ‐                    ‐ $         17,309 $         11,260 $           6,967 $         13,269 $         837,325 $      196,208 $      224,430 $            ‐ 5,811 $                ‐ $                ‐ $                $            ‐ 15,382 $                $              992 ‐ 3,446                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ 9,257                    ‐                    ‐                                   ‐ 15,382                                     992 8,052          11,260            6,967          13,269          821,943        196,208        223,438 8,052            11,260              6,967            13,269            821,943          196,208          223,438 $         17,309 $         11,260 $           6,967 $         13,269 $         837,325 $      196,208 $      224,430 (continued)

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Special Revenue Funds – Other, Continued
June 30, 2024
‐81‐
SM
Community
Foundation
YAC‐Youth
Activity
Center
Local Transit
Prop C
County Prop A
Park
Development
CA Beverage
Container
Assets:

Cash and investments 54,961 $          $         66,387 $               ‐ 975 $                $         17,979 Receivables:

Accounts                    ‐ ‐                                ‐ 18,771                    ‐ Taxes                    ‐ ‐                    ‐                    ‐                    ‐ Due from other agencies                    ‐ ‐                    ‐                    ‐                    ‐ Prepaid                    ‐ ‐                    ‐                    ‐                    ‐ Total assets 54,961 $          $         66,387 $          ‐ 19,746 $                $         17,979 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable $                ‐ ‐ $                ‐ $                ‐ $                ‐ $ Accrued payroll and
related liabilities                    ‐ ‐                    ‐                    ‐                    ‐ Due to other funds                    ‐ ‐                    ‐                    ‐                    ‐ Deposits                    ‐ ‐                    ‐                    ‐                    ‐ Total liabilities                    ‐ ‐                    ‐                    ‐                    ‐ Fund balances (deficit):

Restricted 54,961                   66,387          ‐ 19,746                          17,979 Total fund balances 54,961                        66,387             ‐ 19,746                               17,979 Total liabilities, deferred inflows
of resources, and fund balances 54,961 $          $         66,387 $          ‐ 19,746 $                $         17,979 ‐82‐
Community
Development
Block
Grant
Clean Air
Fund (AQMD)
Environmental
Fund Gas Tax Fund Measure R Measure M
$                 ‐ $         26,086 $          194,149 $      229,673 $           1,987 $        276,934 ‐               3,641                41,491             ‐ 26,413                    ‐ ‐ ‐                    ‐                       ‐                               14,119              16,008 ‐ ‐                    ‐                       ‐                    ‐                    ‐ ‐ ‐                    ‐                       ‐                    ‐                    ‐ $                 ‐ $         29,727 $          235,640 $      256,086 $         16,106 $        292,942 $                  ‐ ‐ $                 ‐ $                    $          ‐ 14,519 $                ‐ $ ‐ ‐                    ‐                                     ‐ 4,784                    ‐ ‐ ‐                    ‐                       ‐                    ‐                    ‐ ‐ ‐                                      ‐ 2,160                    ‐                    ‐ ‐ ‐                                     2,160             ‐ 19,303                    ‐ ‐          29,727           233,480        236,783          16,106          292,942 ‐            29,727             233,480          236,783            16,106            292,942 $                 ‐ $         29,727 $          235,640 $      256,086 $         16,106 $        292,942 (continued)

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Special Revenue Funds – Other, Continued
June 30, 2024
‐83‐
Road
Maintenance
and
Rehabilitation
Library Gi ft
and
Memorial
Friends of the
Library
Local
Historical
Society Measure W
Assets:

Cash and investments 263,794 $           $      ‐ 213,382 $                $           174 $           99,264 Receivables:

Accounts 50,277                 ‐                               ‐ 27,777                ‐ Taxes                        ‐ ‐                   ‐                    ‐                ‐ Due from other agencies                        ‐ ‐                   ‐                    ‐                               1,673 Prepaid                        ‐ ‐                                     ‐ 453                ‐ Total assets 314,071 $           $     213,382 $         28,230 $           174 $        100,937 Liabilities, deferred inflows of resources,
and fund balances:

Liabilities:

Accounts payable 39,957 $              $             154 $            ‐ 9,922 $             ‐ $ Accrued payroll and
related liabilities                        ‐ ‐                   ‐                    ‐                ‐ Due to other funds                        ‐ ‐                               ‐ 18,308                ‐ Deposits                        ‐ ‐                   ‐                    ‐                ‐ Total liabilities 39,957                                 154             ‐ 28,230                ‐ Fund balances (deficit):

Restricted 274,114                  ‐ 213,228                            174          100,937 Total fund balances 274,114                        ‐ 213,228                                 174            100,937 Total liabilities, deferred inflows
of resources, and fund balances 314,071 $           $     213,382 $         28,230 $           174 $        100,937 ‐84‐
Robert Day
Trust Fund
Cal Energy
Grant
Total Other
Special Revenue
Funds
$         ‐ 738,990 $                  $        4,803,582 ‐ ‐                                   168,370
‐ ‐                                      60,029
‐ ‐                                        1,673
‐ ‐                                        1,293
$         ‐ 738,990 $                  $        5,034,947 $                  ‐ ‐ $                  $             86,737 ‐ ‐                                      14,685
‐ ‐                                      18,308
‐ ‐                                      52,940
‐ ‐                                   172,670
‐ 738,990                             4,862,277
‐ 738,990                                4,862,277
$         ‐ 738,990 $                  $        5,034,947 (concluded)

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Special Revenue Funds – Other
For the year ended June 30, 2024
‐85‐
Development
Impact Fees
Development
Fees Art in
Public Places
DUI
Enforcement
Police
Department
Donations
Public Safety
Augmentation
Fund
Revenues:

Charges for services $                  ‐ ‐ $                  ‐ $                  ‐ $                  ‐ $ Intergovernmental                      ‐ ‐                      ‐                      ‐                                   169,546 Licenses and permits 197,428             ‐                      ‐                      ‐                      ‐ Investment income              34,616                    917                      43                1,337                   3,411 Miscellaneous                      ‐ ‐                      ‐                                      ‐ 5,000 Total revenues 232,044                                917                      43                6,337              172,957 Expenditures:

Current:

Public safety                      ‐ ‐                      ‐                      ‐                                   107,053 Public works                      ‐ ‐                      ‐                      ‐                      ‐ Development                      ‐ ‐                      ‐                      ‐                      ‐ Culture and recreation 11,078               ‐                      ‐                      ‐                      ‐ Total expenditures 11,078               ‐                      ‐                      ‐                                   107,053 Excess (deficiency) of revenues
over (under) expenditures 220,966                                917                      43                6,337                65,904 Other financing sources (uses):

Transfers in                      ‐ ‐                      ‐                      ‐                      ‐ Transfers out                      ‐ ‐                      ‐                      ‐                      ‐ Total other financing sources (uses)                      ‐ ‐                      ‐                      ‐                      ‐ Net change to fund balances 220,966                                917                      43                6,337                65,904 Fund balances (deficit), beginning of year 838,483                          25,971                1,200              34,847                90,918 Fund balances (deficit), end of year 1,059,449 $       $           26,888 $             1,243 $           41,184 $           156,822 ‐86‐
State COPS
Grant
Fire
Department
Donations
Community
Arts
Commission
Recreation
Department
Donations
Local
Transportation
Prop A Open Space Senior Center
$                ‐ ‐ $                ‐ $                ‐ $                $                  ‐ 468 $                ‐ $ ‐ 100,000                    ‐                    ‐                                ‐ 288,100                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ 613                  780                  236                  498              27,171              5,819              7,755 ‐               ‐ 5,466                    ‐                    ‐                                 49,578            19,579 100,613              6,246                  236                  498            315,739            55,397            27,334 119,678             ‐ 24,206                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                                ‐ 189,016                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                                 2,894                  ‐ 3,447                               21,870 119,678             ‐ 24,206                                 2,894             ‐ 192,463                               21,870 (19,065)           (17,960)                  236             (2,396)            123,276            55,397              5,464 ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                      ‐                    ‐ (19,065)           (17,960)                  236             (2,396)            123,276            55,397              5,464 27,117            29,220              6,731            15,665            698,667          140,811          217,974 $           8,052 $         11,260 $           6,967 $         13,269 $         821,943 $      196,208 $      223,438 (continued)

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Special Revenue Funds – Other, Continued
For the year ended June 30, 2024
‐87‐
SM
Community
Foundation
YAC‐Youth
Activity
Center
Local Transit
Prop C
County Prop A
Park
Development
CA Beverage
Container
Grant
Revenues:

Charges for services $                ‐ ‐ $                ‐ $                ‐ $                ‐ $ Intergovernmental                    ‐ ‐                             238,973             ‐ 57,055 Licenses and permits                    ‐ ‐                    ‐                    ‐                    ‐ Investment income              1,873              2,263               ‐ 1,890                                     613 Miscellaneous                    ‐ ‐                    ‐                    ‐                    ‐ Total revenues 1,873                            2,263          240,863            57,055                  613 Expenditures:

Current:

Public safety                    ‐ ‐                    ‐                    ‐                    ‐ Public works                    ‐ ‐                              ‐ 302,500                    ‐ Development                    ‐ ‐                    ‐                    ‐                    ‐ Culture and recreation                    ‐ ‐                    ‐                    ‐                    ‐ Total expenditures                    ‐ ‐                              ‐ 302,500                    ‐ Excess (deficiency) of revenues
over (under) expenditures 1,873                            2,263           (61,637)            57,055                  613 Other financing sources (uses):

Transfers in                    ‐ ‐                    ‐                                  ‐ 6,801 Transfers out                    ‐ ‐                    ‐                    ‐                    ‐ Total other financing sources (uses)                    ‐ ‐                    ‐                                  ‐ 6,801 Net change to fund balances 1,873                            2,263           (61,637)            63,856                  613 Fund balances (deficit), beginning of year 53,088                        64,124            81,383           (63,856)            17,366 Fund balances (deficit), end of year 54,961 $          $         66,387 $          ‐ 19,746 $                $         17,979 ‐88‐
Community
Development
Block Grant
Clean Air
Fund (AQMD)
Environmental
Fund Gas Tax Fund Measure R Measure M
$               ‐ ‐ $                ‐ $                   ‐ $                ‐ $                ‐ $ 52,646            ‐ 14,556                                307,650          179,173       202,325 ‐ ‐                                ‐ 145,500                    ‐                    ‐ ‐                 626                 6,522              7,250              3,052            9,226 ‐ ‐                                  ‐ 30,000                    ‐                    ‐ 52,646           15,182             182,022          314,900          182,225       211,551 ‐ ‐                   ‐                       ‐                    ‐                    ‐ ‐ ‐                                 79,380          249,232          339,000       132,165 ‐ ‐                   ‐                       ‐                    ‐                    ‐ ‐ ‐                   ‐                       ‐                    ‐                    ‐ ‐ ‐                                 79,380          249,232          339,000       132,165 52,646           15,182             102,642            65,668        (156,775)          79,386 ‐ 22,540                   ‐                       ‐                    ‐                    ‐ ‐ ‐                   ‐                       ‐                    ‐                    ‐ ‐ 22,540                   ‐                       ‐                    ‐                    ‐ 75,186           15,182             102,642            65,668        (156,775)          79,386 (75,186)           14,545             130,838          171,115          172,881       213,556 $              ‐ $        29,727 $         233,480 $      236,783 $         16,106 $    292,942 (continued)

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Special Revenue Funds – Other, Continued
For the year ended June 30, 2024
‐89‐
Road
Maintenance
and
Rehabilitation
Library Gi ft
and
Memorial
Friends of the
Library
Local
Historical
Society Measure W
Revenues:

Charges for services $                  ‐ ‐ $                ‐ $                ‐ $            ‐ $ Intergovernmental 288,486            ‐                   ‐                    ‐                     151,164 Licenses and permits                     ‐ ‐                   ‐                    ‐                ‐ Investment income (loss) 4,258                               ‐ 6,479                    ‐                             830 Miscellaneous                    ‐              8,731             ‐ 47,024                ‐ Total revenues 292,744                       15,210             ‐ 47,024                     151,994 Expenditures:

Current:

Public safety                     ‐ ‐                   ‐                    ‐                ‐ Public works 39,958               ‐                   ‐                    ‐                     117,887 Development                     ‐ ‐                   ‐                    ‐                ‐ Culture and recreation                    ‐            11,801             ‐ 47,024                ‐ Total expenditures 39,958                          11,801             ‐ 47,024                     117,887 Excess (deficiency) of revenues
over (under) expenditures 252,786                          ‐ 3,409                    ‐                        34,107 Other financing sources (uses):

Transfers in                    ‐             ‐ 25,000                    ‐                        12,564 Transfers out                     ‐ ‐                   ‐                    ‐                ‐ Total other financing sources (uses)                    ‐             ‐ 25,000                    ‐                        12,564 Net change to fund balances 252,786                        ‐ 28,409                    ‐                        46,671 Fund balances (deficit), beginning of year 21,328                        ‐ 184,819                                 174         54,266 Fund balances (deficit), end of year 274,114 $         $       ‐ 213,228 $                $          174 $   100,937 ‐90‐
Robert Day
Trust Fund
Cal Energy
Grant
Total Other
Special Revenue
Funds
$             ‐ ‐ $             $                   468 ‐         23,205           2,072,879
‐ ‐                             342,928
‐ 26,044                             154,122
‐ ‐                             165,378
26,044         23,205           2,735,775
‐ ‐                             250,937
‐ ‐                          1,449,138
‐         23,205                 23,205
‐ ‐                                98,114
‐         23,205           1,821,394
‐ 26,044                             914,381
‐ ‐                                66,905
‐ (25,000)                              (25,000)
‐ (25,000)                                41,905
‐ 1,044                             956,286
‐ 737,946                          3,905,991
$    ‐ 738,990 $             $        4,862,277
(concluded)

CITY OF SIERRA MADRE
Combining Balance Sheet
Non‐Major Capital Project Funds
June 30, 2024
‐91‐
Low & Moderate
Income Housing
Asset Fund
Capital Projects
Fund
Total Capital
Project Funds
Assets:

Cash and investments 347,492 $            $           665,990 $        1,013,482 Land held for resale 1,500,000            ‐                                  1,500,000 Total assets 1,847,492 $         $           665,990 $        2,513,482 Liabilities and Fund Balances:

Accounts payable $                    ‐ $           186,734 $           186,734 Accrued payroll and
related liabilities                       ‐                   8,000                   8,000 Deposits 2,500                    ‐                                          2,500 Total liabilities 2,500                                 194,734              197,234 Fund balances:

Restricted 1,844,992                         471,256           2,316,248 Total fund balances 1,844,992                         471,256           2,316,248 Total liabilities and fund balances 1,847,492 $         $           665,990 $        2,513,482

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non‐Major Capital Project Funds
For the year ended June 30, 2024
‐92‐
Low & Moderate
Income Housing
Asset Fund
Capital Projects
Fund
Total Capital
Project Funds
Revenues:

Investment income 11,846 $              $                6,272 $             18,118 Total revenues 11,846                                    6,272                 18,118 Expenditures:

Current:

Public works                       ‐              449,604              449,604 Total expenditures                       ‐              449,604              449,604 Excess (deficiency) of revenues
over (under) expenditures 11,846                              (443,332)             (431,486) Other financing sources (uses):

Transfers in                       ‐              620,000              620,000 Total other financing sources (uses)                       ‐              620,000              620,000 Net change to fund balance 11,846                               176,668              188,514 Fund balances, beginning of year 1,833,146                         294,588           2,127,734 Fund Balances, end of year 1,844,992 $         $           471,256 $        2,316,248

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Library Grant Fund Special Revenue Fund
For the year ended June 30, 2024
‐93‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental $                ‐ ‐ $                $         12,145 $         12,145 Investment income                    ‐ ‐                               10,732            10,732 Total revenues                    ‐ ‐                               22,877            22,877 Expenditures:

Current:

Public works 334,605                    334,605            12,145          322,460 Total expenditures 334,605                    334,605            12,145          322,460 Excess (deficiency) of revenues
over (under) expenditures (334,605)          (334,605)         10,732       345,337 Net change to fund balance (334,605)                (334,605)            10,732          345,337 2,929              2,929               ‐ 2,929
Fund balance (deficit), end of year (331,676) $      $     (331,676) $         13,661 $      345,337 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Bonita Sewer Assessment District Fund Special Revenue Fund For the year ended June 30, 2024
‐94‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Property taxes $               ‐ $         10,000 $         10,290 $              290 Investment income                    ‐ ‐                                 2,873              2,873 Total revenues                   ‐            10,000            13,163              3,163 Expenditures:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures                ‐         10,000         13,163           3,163 Net change to fund balance                   ‐            10,000            13,163              3,163 77,354            77,354             ‐ 77,354
Fund balance, end of year 77,354 $          $         87,354 $         90,517 $           3,163 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Lighting District #1 Special Revenue Fund
For the year ended June 30, 2024
‐95‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $         18,843 $         18,843 Total revenues                    ‐ ‐                               18,843            18,843 Expenditures:

Current:

Public works 2,000                            2,000              2,366                (366) Total expenditures 2,000                            2,000              2,366                (366) Excess (deficiency) of revenues
over (under) expenditures (2,000)                    (2,000)         16,477         18,477 Net change to fund balance (2,000)                          (2,000)            16,477            18,477 534,789          534,789           ‐ 534,789
Fund balance, end of year 532,789 $       $      532,789 $      551,266 $         18,477 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Sewer Assessment District Special Revenue Fund
For the year ended June 30, 2024
‐96‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Property taxes $               ‐ $           7,000 $           7,037 $                 37 Investment income                    ‐ ‐                                 1,408              1,408 Total revenues                   ‐              7,000              8,445              1,445 Expenditures:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures                ‐           7,000           8,445           1,445 Net change to fund balance                   ‐              7,000              8,445              1,445 36,954            36,954             ‐ 36,954
Fund balance, end of year 36,954 $          $         43,954 $         45,399 $           1,445 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Sierra Madre CFD Special Revenue Fund
For the year ended June 30, 2024
‐97‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Property taxes $               ‐ $           6,800 $           6,845 $                 45 Investment income                    ‐ ‐                                 2,913              2,913 Total revenues                   ‐              6,800              9,758              2,958 Expenditures:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures                ‐           6,800           9,758           2,958 Net change to fund balance                   ‐              6,800              9,758              2,958 79,868            79,868             ‐ 79,868
Fund balance, end of year 79,868 $          $         86,668 $         89,626 $           2,958 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Downtown Landscaping and Lighting Maintenance District
For the year ended June 30, 2024
‐98‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Property taxes 95,000 $          $         95,000 $         93,834 $          (1,166) Investment income                   ‐            40,000            19,722           (20,278) Total revenues 95,000                      135,000          113,556           (21,444) Expenditures:

Current:

Public works 609,250                    688,697          300,469        (388,228) Total expenditures 609,250                    688,697          300,469        (388,228) Excess (deficiency) of revenues
over (under) expenditures (514,250)          (553,697)     (186,913)       366,784 Other financing sources (uses):

Transfers in 32,140                         ‐ 32,140                              (32,140) Total other financing sources (uses) 32,140                         ‐ 32,140                              (32,140) Net change to fund balance (482,110)                (521,557)        (186,913)          334,644 671,686          671,686           ‐ 671,686
Fund balance, end of year 189,576 $       $      150,129 $      484,773 $      334,644 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Development Impact Fees Special Revenue Fund
For the year ended June 30, 2024
‐99‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Licenses and permits $               ‐ $         64,700 $      197,428 $      132,728 Investment income                    ‐ ‐                               34,616            34,616 Total revenues                   ‐            64,700          232,044          167,344 Expenditures:

Current:

Public works 104,580                     ‐ 104,580                             104,580 Culture and recreation 156,800                    197,620            11,078          186,542 Total expenditures 261,380                    302,200            11,078          291,122 Excess (deficiency) of revenues
over (under) expenditures (261,380)          (237,500)       220,966       458,466 Net change to fund balance (261,380)                (237,500)          220,966          458,466 838,483          838,483           ‐ 838,483
Fund balance, end of year 577,103 $       $      600,983 $   1,059,449 $      458,466 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Police Department Donations Special Revenue Fund
For the year ended June 30, 2024
‐100‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $           1,337 $           1,337 Miscellaneous                   ‐              5,000               ‐ 5,000 Total revenues                   ‐              5,000              6,337              1,337 Expenditures:

Current:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures                ‐           5,000           6,337           1,337 Net change to fund balance                   ‐              5,000              6,337              1,337 34,847            34,847             ‐ 34,847
Fund balance, end of year 34,847 $          $         39,847 $         41,184 $           1,337 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Public Safety Augmentation Special Revenue Fund
For the year ended June 30, 2024
‐101‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 155,000 $       $      165,000 $      169,546 $           4,546 Investment income                    ‐ ‐                                 3,411              3,411 Total revenues 155,000                    165,000          172,957              7,957 Expenditures:

Current:

Public safety 116,540                    116,540          107,053              9,487 Total expenditures 116,540                    116,540          107,053              9,487 Excess (deficiency) of revenues
over (under) expenditures 38,460                  48,460         65,904         17,444 Net change to fund balance 38,460                        48,460            65,904            17,444 90,918            90,918             ‐ 90,918
Fund balance, end of year 129,378 $       $      139,378 $      156,822 $         17,444 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual State COPS Grant Special Revenue Fund
For the year ended June 30, 2024
‐102‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 165,000 $       $      180,000 $      100,000 $       (80,000) Investment income                    ‐ ‐                                     613                  613 Total revenues 165,000                    180,000          100,613           (79,387) Expenditures:

Current:

Public safety 165,000                    165,000          119,678            45,322 Total expenditures 165,000                    165,000          119,678            45,322 Excess (deficiency) of revenues
over (under) expenditures                ‐         15,000        (19,065)        (34,065) Net change to fund balance                   ‐            15,000           (19,065)           (34,065) 27,117            27,117             ‐ 27,117
Fund balance, end of year 27,117 $          $         42,117 $           8,052 $       (34,065) Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Fire Department Donations Special Revenue Fund
For the year ended June 30, 2024
‐103‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $              780 $              780 Miscellaneous                   ‐              5,280              5,466                  186 Total revenues                   ‐              5,280              6,246                  966 Expenditures:

Current:

Public safety                   ‐            19,400            24,206             (4,806) Total expenditures                   ‐            19,400            24,206             (4,806) Excess (deficiency) of revenues
over (under) expenditures                ‐        (14,120)        (17,960)          (3,840) Net change to fund balance                   ‐           (14,120)           (17,960)             (3,840) 29,220            29,220             ‐ 29,220
Fund balance, end of year 29,220 $          $         15,100 $         11,260 $          (3,840) Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Local Transportation Prop A Special Revenue Fund
For the year ended June 30, 2024
‐104‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Charges for services $                ‐ ‐ $                $              468 $              468 Intergovernmental 314,000                    314,000          288,100           (25,900) Investment income                    ‐ ‐                               27,171            27,171 Total revenues 314,000                    314,000          315,739              1,739 Expenditures:

Current:

Public works 182,000                    195,000          189,016              5,984 Culture and recreation                   ‐              1,300              3,447             (2,147) Total expenditures 182,000                    196,300          192,463              3,837 Excess (deficiency) of revenues
over (under) expenditures 132,000              117,700       123,276           5,576 Net change to fund balance 132,000                    117,700          123,276              5,576 698,667          698,667           ‐ 698,667
Fund balance, end of year 830,667 $       $      816,367 $      821,943 $           5,576 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Open Space Special Revenue Fund
For the year ended June 30, 2024
‐105‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $           5,819 $           5,819 Miscellaneous 49,550                        49,550            49,578                    28 Total revenues 49,550                        49,550            55,397              5,847 Expenditures:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures 49,550                  49,550         55,397           5,847 Net change to fund balance 49,550                        49,550            55,397              5,847 140,811          140,811           ‐ 140,811
Fund balance, end of year 190,361 $       $      190,361 $      196,208 $           5,847 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Senior Center Special Revenue Fund
For the year ended June 30, 2024
‐106‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $           7,755 $           7,755 Miscellaneous                    ‐ ‐                               19,579            19,579 Total revenues                    ‐ ‐                               27,334            27,334 Expenditures:

Current:

Culture and recreation 20,000                        20,000            21,870             (1,870) Total expenditures 20,000                        20,000            21,870             (1,870) Excess (deficiency) of revenues
over (under) expenditures (20,000)                (20,000)           5,464         25,464 Net change to fund balance (20,000)                      (20,000)              5,464            25,464 217,974          217,974           ‐ 217,974
Fund balance, end of year 197,974 $       $      197,974 $      223,438 $         25,464 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Local Transit Prop C Special Revenue Fund
For the year ended June 30, 2024
‐107‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 260,500 $       $      260,500 $      238,973 $       (21,527) Investment income                    ‐ ‐                                 1,890              1,890 Total revenues 260,500                    260,500          240,863           (19,637) Expenditures:

Current:

Public works 302,500                    307,300          302,500              4,800 Total expenditures 302,500                    307,300          302,500              4,800 Excess (deficiency) of revenues
over (under) expenditures (42,000)                (46,800)        (61,637)        (14,837) Net change to fund balance (42,000)                      (46,800)           (61,637)           (14,837) 81,383            81,383             ‐ 81,383
Fund balance, end of year 39,383 $          $         34,583 $         19,746 $       (14,837) Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Clear Air (AQMD) Special Revenue Fund
For the year ended June 30, 2024
‐108‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental $               ‐ $         14,000 $         14,556 $              556 Investment income                    ‐ ‐                                     626                  626 Total revenues                   ‐            14,000            15,182              1,182 Expenditures:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures                ‐         14,000         15,182           1,182 Net change to fund balance                   ‐            14,000            15,182              1,182 14,545            14,545             ‐ 14,545
Fund balance, end of year 14,545 $          $         28,545 $         29,727 $           1,182 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Environmental Special Revenue Fund
For the year ended June 30, 2024
‐109‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Licenses and permits 100,000 $       $      100,000 $      145,500 $         45,500 Investment income                    ‐ ‐                                 6,522              6,522 Miscellaneous                   ‐            30,000             ‐ 30,000 Total revenues 100,000                    130,000          182,022            52,022 Expenditures:

Current:

Public works 133,000                    133,000            79,380            53,620 Total expenditures 133,000                    133,000            79,380            53,620 Excess (deficiency) of revenues
over (under) expenditures (33,000)                  (3,000)       102,642       105,642 Net change to fund balance (33,000)                        (3,000)          102,642          105,642 130,838          130,838           ‐ 130,838
Fund balance, end of year 97,838 $          $      127,838 $      233,480 $      105,642 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Gas Tax Special Revenue Fund
For the year ended June 30, 2024
‐110‐
Original
Budget
Final
Budget Actual
Variance
wi th Final
Budget
Revenues:

Intergovernmental 320,000 $       $      312,300 $      307,650 $          (4,650) Investment income                    ‐ ‐                                 7,250              7,250 Total revenues 320,000                    312,300          314,900              2,600 Expenditures:

Current:

Public works 363,120                    363,120          249,232          113,888 Total expenditures 363,120                    363,120          249,232          113,888 Excess (deficiency) of revenues
over (under) expenditures (43,120)                (50,820)         65,668       116,488 Net change to fund balance (43,120)                      (50,820)            65,668          116,488 171,115          171,115           ‐ 171,115
Fund balance, end of year 127,995 $       $      120,295 $      236,783 $      116,488 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Measure R Special Revenue Fund
For the year ended June 30, 2024
‐111‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 195,300 $       $      195,300 $      179,173 $       (16,127) Investment income                    ‐ ‐                                 3,052              3,052 Total revenues 195,300                    195,300          182,225           (13,075) Expenditures:

Current:

Public works 340,000                    364,000          339,000            25,000 Total expenditures 340,000                    364,000          339,000            25,000 Excess (deficiency) of revenues
over (under) expenditures (144,700)          (168,700)     (156,775)         11,925 Net change to fund balance (144,700)                (168,700)        (156,775)            11,925 172,881          172,881           ‐ 172,881
Fund balance, end of year 28,181 $          $           4,181 $         16,106 $         11,925 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Measure M Special Revenue Fund
For the year ended June 30, 2024
‐112‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 221,400 $       $      221,400 $      202,325 $       (19,075) Investment income                    ‐ ‐                                 9,226              9,226 Total revenues 221,400                    221,400          211,551             (9,849) Expenditures:

Current:

Public works 345,000                    415,000          132,165          282,835 Total expenditures 345,000                    415,000          132,165          282,835 Excess (deficiency) of revenues
over (under) expenditures (123,600)          (193,600)         79,386       272,986 Net change to fund balance (123,600)                (193,600)            79,386          272,986 213,556          213,556           ‐ 213,556
Fund balance, end of year 89,956 $          $         19,956 $      292,942 $      272,986 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Road Maintenance and Rehabilitation Special Revenue Fund For the year ended June 30, 2024
‐113‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 275,000 $       $      267,000 $      288,486 $         21,486 Investment income                    ‐ ‐                                 4,258              4,258 Total revenues 275,000                    267,000          292,744            25,744 Expenditures:

Current:

Public works 250,000                    250,000            39,958          210,042 Total expenditures 250,000                    250,000            39,958          210,042 Excess (deficiency) of revenues
over (under) expenditures 25,000                  17,000       252,786       235,786 Net change to fund balance 25,000                        17,000          252,786          235,786 21,328            21,328             ‐ 21,328
Fund balance, end of year 46,328 $          $         38,328 $      274,114 $      235,786 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Library Gift and Memorial Special Revenue Fund
For the year ended June 30, 2024
‐114‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $           6,479 $           6,479 Miscellaneous                    ‐ ‐                                 8,731              8,731 Total revenues                    ‐ ‐                               15,210            15,210 Expenditures:

Current:

Culture and recreation 104,000                    104,000            11,801            92,199 Total expenditures 104,000                    104,000            11,801            92,199 Excess (deficiency) of revenues
over (under) expenditures (104,000)          (104,000)           3,409       107,409 Other financing sources (uses):

Trans fers in 25,000.00                  25,000             ‐ 25,000 Total other financing sources (uses) 25,000                        25,000             ‐ 25,000 Net change to fund balance (79,000)                      (79,000)            28,409          107,409 184,819          184,819           ‐ 184,819
Fund balance, end of year 105,819 $       $      105,819 $      213,228 $      107,409 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Friends of the Library Special Revenue Fund
For the year ended June 30, 2024
‐115‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Miscellaneous 55,000 $          $         55,000 $         47,024 $          (7,976) Total revenues 55,000                        55,000            47,024             (7,976) Expenditures:

Current:

Culture and recreation 55,000                        55,000            47,024              7,976 Total expenditures 55,000                        55,000            47,024              7,976 Excess (deficiency) of revenues
over (under) expenditures                 ‐ ‐                 ‐                 ‐ Net change to fund balance                    ‐ ‐                    ‐                    ‐ ‐ ‐                    ‐                    ‐
Fund balance, end of year $                ‐ ‐ $                ‐ $                ‐ $ Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Measure W Special Revenue Fund
For the year ended June 30, 2024
‐116‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental 150,000 $       $      150,000 $      151,164 $           1,164 Investment income                    ‐ ‐                                     830                  830 Total revenues 150,000                    150,000          151,994              1,994 Expenditures:

Current:

Public works 150,000                    150,000          117,887            32,113 Total expenditures 150,000                    150,000          117,887            32,113 Excess (deficiency) of revenues
over (under) expenditures                 ‐ ‐                         34,107         34,107 Other financing sources (uses):

Transfers in                   ‐            12,564             ‐ 12,564 Total other financing sources (uses)                   ‐            12,564             ‐ 12,564 Net change to fund balance                   ‐            12,564            46,671            34,107 54,266            54,266             ‐ 54,266
Fund balance (deficit), end of year 54,266 $          $         66,830 $      100,937 $         34,107 Fund balance (deficit), beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Robert Day Trust Fund Special Revenue Fund
For the year ended June 30, 2024
‐117‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $         26,044            26,044 Total revenues                    ‐ ‐                               26,044            26,044 Expenditures:

Total expenditures                    ‐ ‐                    ‐                    ‐ Excess (deficiency) of revenues
over (under) expenditures                 ‐ ‐                         26,044         26,044 Other financing sources (uses):

Transfers out (25,000)                      (25,000)            ‐ (25,000) Total other financing sources (uses) (25,000)                      (25,000)            ‐ (25,000) Net change to fund balance (25,000)                      (25,000)              1,044            26,044 737,946          737,946           ‐ 737,946
Fund balance, end of year 712,946 $       $      712,946 $      738,990 $         26,044 Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Cal Energy Grant Fund Special Revenue Fund
For the year ended June 30, 2024
‐118‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Intergovernmental $               ‐ $         23,200 $         23,205 $                   5 Total revenues                   ‐            23,200            23,205                      5 Expenditures:

Current:

Development                   ‐            23,200            23,205                     (5) Total expenditures                   ‐            23,200            23,205                     (5) Net change to fund balance                    ‐ ‐                    ‐                    ‐ ‐ ‐                    ‐                    ‐
Fund balance, end of year $                ‐ ‐ $                ‐ $                ‐ $ Fund balance, beginning of year

CITY OF SIERRA MADRE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Capital Projects Fund
For the year ended June 30, 2024
‐119‐
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues:

Investment income $                ‐ ‐ $                $           6,272 $           6,272 Total revenues                    ‐ ‐                                 6,272              6,272 Expenditures:

Current:

Public works 643,200                    713,200          449,604          263,596 Total expenditures 643,200                    713,200          449,604          263,596 Excess (deficiency) of revenues
over (under) expenditures (643,200)          (713,200)     (443,332)       269,868 Other financing sources (uses):

Transfers in 620,000                    620,000           ‐ 620,000 Total other financing sources (uses) 620,000                    620,000           ‐ 620,000 Net change to fund balance (23,200)                      (93,200)          176,668          269,868 294,588          294,588           ‐ 294,588
Fund balance, end of year 271,388 $       $      201,388 $      471,256 $      269,868 Fund balance, beginning of year

CITY OF SIERRA MADRE
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
‐120‐
Fleet
Facilities
Management Administration
Assets:

Current assets:

Cash and investments 793,164 $           $       1,020,010 $          952,211 Restricted cash and investments ‐                        ‐                        ‐ Receivables:

Accounts ‐                        ‐                        ‐ Total current assets 793,164                        1,020,010              952,211 Noncurrent assets:

Capital assets:

Non‐depreciable assets                       ‐                   ‐ 1,980 Depreciable, net 465,707                             ‐ 643,115 Total noncurrent assets 465,707                             ‐ 645,095 Total assets 1,258,871                    1,665,105              952,211 Deferred Outflows of Resources:

OPEB related                        ‐ ‐                                       21,721 Pension related                        ‐ ‐                                     288,194 Total deferred outflows of resources                        ‐ ‐                                     309,915 Liabilities:

Current liabilities:

Accounts payable 14,293                                48,465                13,299 Accrued payroll and related liabilities 5,087                                    2,607                31,284 Compensated absences ‐ current 3,140 7,426 27,613
Lease liability ‐ current                        ‐ ‐                        ‐ Total current liabilities 22,520                                58,498                72,196 Noncurrent liabilities:

Compensated absences 12,562 29,704 110,450
Net pension liability                        ‐ ‐                                     379,854 Net OPEB liability                        ‐ ‐                                         9,760 Lease liability                        ‐ ‐                        ‐ Total noncurrent liabilities 12,562                                29,704              500,064 Total liabilities 35,082                                88,202              572,260 Deferred Inflows of Resources:

OPEB related                        ‐ ‐                                       12,761 Pension related                        ‐ ‐                                       71,719 Total deferred inflows of resources                        ‐ ‐                                       84,480 Net Position:

Net investment in capital assets 465,707                             ‐ 645,095 Restricted ‐ Section 115 Trust                        ‐ ‐                        ‐ Unrestricted 758,082                            931,808              605,386 Total net position $       1,223,789 $       1,576,903 $          605,386 ‐121‐
Technology
Personnel and
Risk
Management
General Plan
and Housing
Update
Total Internal
Service Funds
$          875,386 $       1,369,791 $          145,110 $           5,155,672 ‐                 ‐ 20,707                        20,707 6,661                       ‐ 301                                              6,962 882,047          1,390,799              145,110               5,183,341 ‐ ‐                        ‐                                              1,980 ‐ 60,998                        ‐                                      1,169,820 ‐ 60,998                        ‐                                      1,171,800 943,045          1,390,799              145,110               6,355,141 ‐ ‐                        ‐                                           21,721 ‐ ‐                        ‐                                         288,194 ‐ ‐                        ‐                                         309,915 37,630                 ‐ 83,353                                         197,040 13,560                 ‐ 95,997                                         148,535 8,519 372                       ‐                    47,070 ‐ 4,614                        ‐                                              4,614 64,323               ‐ 179,722                                         397,259 34,078 1,488                       ‐                  188,282 ‐ ‐                        ‐                                         379,854 ‐ ‐                        ‐                                              9,760 ‐ 16,138                        ‐                                           16,138 50,216                   ‐ 1,488                                         594,034 114,539               ‐ 181,210                                         991,293 ‐ ‐                        ‐                                           12,761 ‐ ‐                        ‐                                           71,719 ‐ ‐                        ‐                                           84,480 ‐ 40,246                        ‐                                      1,151,048 ‐                 ‐ 20,707                                           20,707 788,260          1,188,882              145,110               4,417,528 $          828,506 $       1,209,589 $          145,110 $           5,589,283

CITY OF SIERRA MADRE
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the year ended June 30, 2024
‐122‐
Fleet
Facilities
Management Administration
Operating revenues:

Charges for services 547,600 $           $       1,038,000 $          975,000 Licenses and permits                        ‐ ‐                        ‐ Miscellaneous                        ‐ ‐                        ‐ Total operating revenues 547,600                        1,038,000              975,000 Operating expenses:

Personnel services 154,935                            101,875              877,429 Contractual services 73,553                              147,447                91,734 Materials and supplies 63,658                                44,672                89,456 Utilities 134,065                             ‐ 315,717 Maintenance and operation                       ‐                82,547                  7,949 Insurance, claims and charges ‐                        ‐                        ‐ Depreciation 105,837                               ‐ 19,541 Amortization                        ‐ ‐                        ‐ Total operating expenses 532,048                            711,799          1,066,568 Operating income (loss) 15,552                              326,201               (91,568) Nonoperating revenues (expenses):

Investment income 22,955                                23,316                27,573 Interest expense                        ‐ ‐                        ‐ Total nonoperating revenues (expenses) 22,955                                23,316                27,573 Income (loss) before transfers
and capital contributions 38,507                              349,517               (63,995) Change in net position 38,507                              349,517               (63,995) Net position, beginning of year 1,185,282                    1,227,386              669,381 Net position, end of year 1,223,789 $        $       1,576,903 $          605,386 ‐123‐
Technology
Personnel and
Risk
Management
General Plan
and Housing
Update
Total Internal
Service Funds
$          940,000 $        ‐ 1,616,385 $                    $           5,116,985 ‐ 27,377                        ‐                                           27,377 ‐                11,613                35,000                    46,613 967,377          1,627,998                35,000               5,190,975 398,856               ‐ 340,011                                      1,873,106 269,366                 ‐ 95,865                                         677,965 63,307                 ‐ 22,153                                         283,246 ‐ 235,059                        ‐                                         684,841 ‐ ‐                        ‐                                           90,496 ‐           ‐ 1,165,638                                      1,165,638 ‐ 23,033                        ‐                                         148,411 ‐ 28,862                        ‐                                           28,862 1,018,483           ‐ 1,623,667                                      4,952,565 (51,106)                  4,331                35,000                  238,410 25,219                32,199                  3,753                  135,015 ‐ (837)                        ‐                                                (837) 24,382                32,199                  3,753                  134,178 (26,724)                36,530                38,753                  372,588 (26,724)                36,530                38,753                  372,588 855,230          1,173,059              106,357               5,216,695 $          828,506 $       1,209,589 $          145,110 $           5,589,283

CITY OF SIERRA MADRE
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
‐124‐
Fleet
Facilities
Management Administration
Cash flows from operating activities:

Receipts from interfund services provided $           547,600 $        1,038,000 $           975,000 Payments to suppliers             (307,946)             (639,040)             (192,467) Payments to employees (167,159)                          (141,123)             (763,568) Net cash provided (used) by operating activities 72,495                               257,837                 18,965 Cash flows from capital and related financing activities:

Principal paid ‐                        ‐                        ‐ Interest paid                        ‐ ‐                        ‐ Net cash provided (used) by capital
and related financing activities                        ‐ ‐                        ‐ Cash flows from investing activities:

Investment income 22,955                                  23,316                 27,573 Net cash provided (used) by investing activities 22,955                                  23,316                 27,573 Net increase (decrease) in cash and cash equivalents 95,450                               281,153                 46,538 Cash and investments:

Beginning of year 697,714                            738,857              905,673 End of year 793,164 $            $        1,020,010 $           952,211 Reconciliation to the Statement of Net Position:

Cash and investments 793,164 $            $        1,020,010 $           952,211 Restricted cash and investments                        ‐ ‐                        ‐ Total $           793,164 $        1,020,010 $           952,211 Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) 15,552 $              $           326,201 $            (91,568) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 105,837                                ‐ 19,541 Amortization                        ‐ ‐                        ‐ Changes in assets, liabilities and deferred amounts:
(Increase) decrease in accounts receivable                        ‐ ‐                        ‐ (Increase) decrease in prepaid expenses                        ‐ ‐                                          1,300 (Increase) decrease in deferred outflow of resources                        ‐ ‐                                        80,341 Increase (decrease) in accounts payable               (36,670)               (48,657)                  (4,628) Increase (decrease) in accrued liabilities (841)                                    (19,353)                  (1,762) Increase (decrease) in compensated absences (11,383)                              (19,895)                 15,473 Increase (decrease) in deferred inflow of resources                        ‐ ‐                                      (41,120) Increase (decrease) in net OPEB liability                        ‐ ‐                                          3,754 Increase (decrease) in net pension liability                        ‐ ‐                                        57,175 Total adjustments 56,943                                (68,364)              110,533 Net cash provided (used) by operating activities 72,495 $              $           257,837 $             18,965 Noncash investing, capital and financing activities:

Lease liabilities $                     ‐ ‐ $                     ‐ $ Lease acquisition                        ‐ ‐                        ‐

CITY OF SIERRA MADRE
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
‐125‐
Technology
Personnel and
Risk
Management
General Plan
and Housing
Update
Total Internal
Service Funds
$           967,918 $        1,627,697 $             35,000 $        5,191,215 (578,079)           ‐ (1,235,029)                                 (2,952,561) (375,790)              ‐ (289,540)                                 (1,737,180) 14,049              103,128                 35,000              501,474 ‐ (31,056)                        ‐                                      (31,056) ‐ (837)                        ‐                                            (837) ‐ (31,893)                        ‐                                      (31,893) 25,219                 32,199                   3,753              135,015 25,219                 32,199                   3,753              135,015 7,375              135,327                 38,753              604,596 868,011           1,255,171              106,357           4,571,783 $           875,386 $        1,390,498 $           145,110 $        5,176,379 $           875,386 $        1,369,791 $           145,110 $        5,155,672 ‐                  ‐ 20,707                                        20,707 $           875,386 $        1,390,498 $           145,110 $        5,176,379 $            (51,106) $                4,331 $             35,000 $           238,410 ‐ 23,033                        ‐                                     148,411 ‐ 28,862                        ‐                                        28,862 541                      ‐ (301)                                             240 ‐ ‐                        ‐                                          1,300 ‐ ‐                        ‐                                        80,341 (10,347)                  ‐ 48,627                                      (51,675) 1,835                  ‐ 62,804                                        42,683 21,231                ‐ (12,333)                                         (6,907) ‐ ‐                        ‐                                      (41,120) ‐ ‐                        ‐                                          3,754 ‐ ‐                        ‐                                        57,175 65,155                  ‐ 98,797                                     263,064 $             14,049 $           103,128 $             35,000 $           501,474 $              ‐ 24,317 $                     ‐ $                     $             24,317 ‐ (24,317)                        ‐                                      (24,317) City of Sierra Madre, California
Village of the Foothills

Statistical Section
For the Year Ended
June 30, 2024
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‐126‐
This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Financial trend information:

Intended to assist users in understanding and assessing how a government’s financial position has changed over time.

Revenue capacity information:

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Debt capacity information:

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Demographic and economic information:

Intended to assist users in understanding the socioeconomic environment within which a government operates and to provide information that facilitates comparison of financial statement information over time and among governments.

Operating information:

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CITY OF SIERRA MADRE
Net Position by Component
(accrual basis of accounting)
‐127‐
As of June 30, 2015 2016 2017 2018
Governmental activities:

Net investment in capital assets 181,862,536 $    $   181,328,167 $   180,505,323 $   181,067,634 Restricted 6,051,883 5,794,991 5,119,384 4,926,003
Unrestricted 764,679 1,731,997 5,264,763 6,263,121
Total governmental activities net position 188,679,098 $    $   188,855,155 $   190,889,470 $   192,256,758 Business‐Type activities:

Net investment in capital assets 16,668,550 $      $     16,824,482 $     16,892,266 $     17,975,946 Restricted 1,149,456 1,149,456 1,149,456                       ‐ Unrestricted 1,994,086 1,313,820 1,439,579 2,585,503
Total business‐type activities net posi tion 19,812,092 $      $     19,287,758 $     19,481,301 $     20,561,449 Primary government:

Net investment in capital assets 198,531,086 $    $   198,152,649 $   197,397,589 $   199,043,580 Restricted 7,201,339                      6,944,447           6,268,840           4,926,003 Unrestricted 2,758,765                      3,045,817           6,704,342           8,848,624 Total primary government net position 208,491,190 $    $   208,142,913 $   210,370,771 $   212,818,207 Source: City of Sierra Madre Finance Department
‐128‐
2019 2020 2021 2022 2023 2024
$   180,934,074 $  180,629,535 $  181,760,515 $  185,318,754 $  185,244,915 $  186,427,424 4,861,587 5,887,957 6,302,207 7,237,002 8,131,547 9,350,537 8,123,037 9,714,208 9,522,562 17,409,081 13,313,338 13,987,115 $   193,918,698 $  196,231,700 $  197,585,284 $  209,964,837 $  206,689,800 $  209,765,076 $     19,580,635 $    21,201,025 $    23,167,195 $    22,881,196 $    23,996,617 $    24,633,990 ‐ ‐                                     54,000               47,615               49,455               53,195 2,639,373 5,044,835 7,365,272 10,160,260 10,430,773 11,843,810 $     22,220,008 $    26,245,860 $    30,586,467 $    33,089,071 $    34,476,845 $    36,530,995 $   200,514,709 $  201,830,560 $  204,927,710 $  208,199,950 $  209,241,532 $  211,061,414 4,861,587          5,887,957          6,356,207          7,284,617          8,181,002          9,403,732 10,762,410       14,759,043       16,887,834       27,569,341       23,744,111       25,830,925 $   216,138,706 $  222,477,560 $  228,171,751 $  243,053,908 $  241,166,645 $  246,296,071

CITY OF SIERRA MADRE
Changes in Net Position
(accrual basis of accounting)
‐129‐
Fiscal year ended June 30, 2015 2016 2017 2018
Expenses:

Governmental activities:

General government 1,581,532 $         $        1,791,927 $        1,710,653 $        1,334,388 Public safety 5,500,997 5,754,806 5,115,933 5,394,253
Public works 2,255,560 1,401,974 1,961,343 2,196,985
Development 1,089,493 1,412,537 1,129,817 1,557,850
Culture and recreation 1,325,706 1,280,228 1,078,262 1,388,943 Interest on long‐term debt 20,580 17,322 13,909 10,336
Total governmental activities expenses 11,773,868                  11,658,794         11,009,917         11,882,755 Business‐type activities:

Water 4,626,949 4,388,290 4,763,179 4,432,899
Sewer 939,202 1,172,547 1,371,492 1,029,623
Recreation services 113,608 259,594 22,697 4,150
Special services 101,219 108,211 125,547 171,228
Film services 18,035 43,620 50,618 77,923
Total business‐type activi ties expenses 5,799,013                      5,972,262           6,333,533           5,715,823 Total primary government expenses 17,572,881 $      $     17,631,056 $     17,343,450 $     17,598,578 Program revenues:

Governmental activities:

Charges for services 2,374,090 $         $        2,350,878 $        2,377,056 $        2,305,382 Operating grants and contributions 1,071,981 1,022,280 1,368,859 1,426,015 Capital grants and contributions                        ‐ ‐                        ‐                        ‐ Total governmental activities
program revenues 3,446,071                      3,373,158           3,745,915           3,731,397 Business‐type activities:

Charges for services 5,497,755 5,606,012 6,337,602 6,719,044 Capital grants and contributions 242,500 46,234 62,166                       ‐ Total business‐type activi ties
program revenues 5,740,255                      5,652,246           6,399,768           6,719,044 Total primary government
program revenues 9,186,326 $         $        9,025,404 $     10,145,683 $     10,450,441 Net revenue/(expense):

Governmental activities (8,327,797) $       $      (8,285,636) $      (7,264,002) $      (8,151,358) Business‐type activities (58,758)                            (320,016)                 66,235           1,003,221 Total primary government
net revenue/(expense) (8,386,555) $       $      (8,605,652) $      (7,197,767) $      (7,148,137) Source: City of Sierra Madre Finance Department
‐130‐
2019 2020 2021 2022 2023 2024
$        3,416,581 $    5,111,963 $       4,322,627 $       1,464,496 $       5,544,945 $       3,689,340 5,688,672       5,473,096           6,445,253           2,377,264           8,085,479           8,788,024 1,883,420       2,260,036           2,464,339           2,131,163           3,747,946           4,316,367 1,089,342          990,443           1,025,108              517,557           2,384,299           1,824,297 1,457,670       1,065,948           1,114,768              373,800           2,985,550           1,666,617 7,610                ‐ 3,097                                               68                      431                   1,304 13,543,295     14,904,584        15,372,095           6,864,348        22,748,650        20,285,949 4,083,465       3,670,810           4,734,967           4,275,124           5,154,213           5,115,315 629,988          582,658           1,110,982              945,302           1,305,431           1,289,314 ‐ ‐                    ‐                        ‐                        ‐                        ‐ ‐ ‐                    ‐                        ‐                        ‐                        ‐ ‐ ‐                    ‐                        ‐                        ‐                        ‐ 4,713,453       4,253,468           5,845,949           5,220,426           6,459,644           6,404,629 $     18,256,748 $ 19,158,052 $     21,218,044 $     12,084,774 $     29,208,294 $     26,690,578 $        2,602,516 $    2,406,865 $       2,429,844 $       3,116,788 $       2,932,301 $       3,257,586 1,705,187 2,534,045 2,279,930 3,108,323 2,389,501 3,823,731 ‐ ‐                                 114,657                 ‐ 45,343                        ‐ 4,307,703       4,940,910           4,824,431           6,270,454           5,321,802           7,081,317 6,675,962 8,160,577 10,058,070 7,800,525 7,645,601 7,952,042 ‐ ‐                    ‐                        ‐                        ‐                        ‐ 6,675,962       8,160,577        10,058,070           7,800,525           7,645,601           7,952,042 $     10,983,665 $ 13,101,487 $     14,882,501 $     14,070,979 $     12,967,403 $     15,033,359 $      (9,235,592) $  (9,963,674) $    (10,547,664) $         (593,894) $    (17,426,848) $    (13,204,632) 1,962,509       3,907,109           4,212,121           2,580,099           1,185,957           1,547,413 $      (7,273,083) $  (6,056,565) $      (6,335,543) $       1,986,205 $    (16,240,891) $    (11,657,219)

CITY OF SIERRA MADRE
Changes in Net Position, (continued)
(modified accrual basis of accounting)
‐131‐
Fiscal year ended June 30, 2015 2016 2017 2018
Governmental activities:

Taxes 8,435,031 $      $     8,487,077 $     9,332,367 $     9,512,791 Investment income (loss) 11,875 38,125 85,587 87,400
Miscellaneous                      ‐ ‐                      ‐                                 673,942 Loss on disposal of property                      ‐ ‐                      ‐                      ‐ Transfers (54,018) (63,509) (118,957) (103,147)
Total governmental activities         8,392,888         8,461,693         9,298,997      10,170,986 Business‐type activities:

Investment income (loss) 6,425 11,201 7,691 32,935
Miscellaneous                      ‐ ‐                      ‐                      ‐ Transfers 54,018 63,509 118,957 103,147
Total business‐type activities              60,443              74,710            126,648            136,082 Total primary government $     8,453,331 $     8,536,403 $     9,425,645 $   10,307,068 Change in net position:

Governmental activities 65,091 $            $         176,057 $     2,034,995 $     2,019,628 Business‐type activities 1,685                            (245,306)            192,883         1,139,303 Total primary government $           66,776 $          (69,249) $     2,227,878 $     3,158,931 Source: City of Sierra Madre Finance Department
‐132‐
2019 2020 2021 2022 2023 2024
$     9,981,892 $ 10,635,408 $ 11,881,819 $ 12,880,340 $ 13,647,431 $ 14,168,040 373,205 393,927 (9,580) (302,973) 260,977 1,631,059
148,141 1,258,038 29,009 93,943 259,134 502,929
‐ ‐                    ‐                    ‐                    ‐                    ‐ 394,294 (10,697)                   ‐           (20,724)           (22,199)           (22,120) 10,897,532     12,276,676     11,901,248     12,650,586     14,145,343     16,279,908 90,344 108,046 48,731 (184,925) 97,792 410,946
‐ ‐                    79,755 86,706 81,826 73,671
(394,294) 10,697                   ‐             20,724             22,199             22,120 (303,950)          118,743          128,486           (77,495)          201,817          506,737 $   10,593,582 $ 12,395,419 $ 12,029,734 $ 12,573,091 $ 14,347,160 $ 16,786,645 $     1,661,940 $    2,313,002 $    1,353,584 $ 12,056,692 $  (3,281,505) $    3,075,276 1,658,559       4,025,852       4,340,607       2,502,604       1,387,774       2,054,150 $     3,320,499 $    6,338,854 $    5,694,191 $ 14,559,296 $  (1,893,731) $    5,129,426

CITY OF SIERRA MADRE
Fund Balances of Governmental Funds
(modified accrual basis of accounting)
‐133‐
As of June 30, 2015 2016 2017 2018
General fund:

Nonspendable 19,535 $              ‐ $                     ‐ $                     ‐ $ Restricted                        ‐ ‐                        ‐                                        15,802 Committed 1,280,500                        ‐ ‐                        ‐ Assigned 5,133,278 4,720,472                        ‐ ‐ Unassigned 1,021,355 1,938,003 7,428,117 8,736,391
Total General Fund 7,454,668 $         $        6,658,475 $        7,428,117 $        8,752,193 All other governmental funds:

Restricted 4,113,442                      4,406,441           5,119,384           4,856,087 Committed 661,036 1,457,095 1,391,394 903,576
Assigned                        ‐ ‐                        ‐                        ‐ Unassigned (256,676) (206,006) (155,931) (117,280)
Total all other governmental funds 4,517,802 $         $        5,657,530 $        6,354,847 $        5,642,383 Total all governmental funds 11,972,470 $      $     12,316,005 $     13,782,964 $     14,394,576 Source: City of Sierra Madre Finance Depart
‐134‐
2019 2020 2021 2022 2023 2024
$                 ‐ 2,365 $                  $              ‐ 1,565 $                  $              ‐ 5,450 $ 32,727              32,639           455,167           404,690           453,889          452,819 ‐ ‐                     ‐                     ‐                     ‐                     ‐ ‐ ‐                     ‐                     ‐                     ‐                     ‐ 6,915,213        7,557,690        9,236,030        9,603,886      11,560,063     14,194,662 $        6,950,305 $     7,590,329 $     9,692,762 $  10,008,576 $  12,019,402 $ 14,647,481 4,828,860        5,855,318        5,826,040        6,813,634        7,658,311       8,877,011 870,091 936,179 401,910 13,338 13,338 13,338
‐ ‐                     ‐                     ‐                     ‐                     ‐ (60,595) (32,283) (308,679) (223,946) (150,487)                   ‐ $        5,638,356 $     6,759,214 $     5,919,271 $     6,603,026 $     7,521,162 $    8,890,349 $     12,588,661 $  14,349,543 $  15,612,033 $  16,611,602 $  19,540,564 $ 23,537,830

CITY OF SIERRA MADRE
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
‐135‐
Fiscal year ended June 30, 2015 2016 2017 2018
Revenues:

Property Taxes 5,264,471 $            $         5,677,308 $         6,075,078 $         6,426,261 Other Taxes 3,170,560 2,809,769 3,257,288 3,228,635
Charges for services 871,237 881,477 690,417 733,929
Intergovernmental 1,073,897 1,022,280 1,176,272 1,228,646 Licenses and permits 1,018,971 837,657 1,222,728 1,227,077 Fines and forfeitures 223,072 190,999 167,318 118,324
Investment Income (loss) 5,397 25,726 63,194 84,912
Miscellaneous 260,810 440,745 489,181 933,142
Total revenues 11,888,415                    11,885,961          13,141,476          13,980,926 Expenditures:

Current:

General government 1,672,935 1,970,283 2,391,482 2,609,677 Public safety 5,382,396 5,725,286 5,375,953 5,200,197
Public works 1,670,830 1,004,326 1,247,133 2,806,374
Development 1,019,712 1,485,372 1,355,877 1,437,228
Culture and recreation 1,162,983 1,228,487 1,115,425 1,141,498 Debt service:

Principal 69,391 72,604 75,964 79,484
Interest 21,651 18,442 15,082 11,563
Total expenditures 10,999,898                    11,504,800          11,576,916          13,286,021 Excess (deficiency) of revenues
over (under) expenditures 888,517                                381,161             1,564,560                694,905 Other financing sources (uses):

Subscription acquisition                          ‐ ‐                          ‐                          ‐ Transfers in 941,521 2,348,798 246,913 37,851
Transfers out (989,406) (2,386,421) (343,835) (121,145) Total other financing sources (uses) (47,885)                                  (37,623)                 (96,922)                 (83,294) Net change in fund balances 840,632                                343,538             1,467,638                611,611 11,131,838          11,972,467          12,315,326          13,782,965 Fund balances, end of year 11,972,470 $        $       12,316,005 $       13,782,964 $       14,394,576 Debt Service as a Percentage of Non‐Capital Expenditures 1% 1% 1% 1% ***Note: In FY 2014‐2015 Property Tax in‐lieu of VLF is reported as part of Property Taxes.

Source: City of Sierra Madre Finance Department
Fund balances, beginning of year, as restated
‐136‐
2019 2020 2021 2022 2023 2024
$         6,830,051 $       7,161,511 $       7,666,122 $       7,967,081 $       8,382,935 $       8,859,401 3,302,646 3,644,793 4,393,543 4,913,188 5,230,313 5,284,445 974,741 824,891 647,586 935,827 940,391 957,204
1,536,011 1,745,392 2,154,464 2,645,384 2,244,921 3,843,162 1,231,070 1,245,264 1,464,992 1,962,943 1,882,838 2,181,430 140,395 82,903 70,616 116,820 109,610 89,175
306,329 320,460 (7,938) (208,415) 302,852 1,621,759
327,781 2,040,124 358,630 513,708 375,384 662,241
14,649,024        17,065,338        16,748,015        18,846,536        19,469,244        23,498,817 3,662,657 5,561,126 3,832,934 3,136,367 4,584,836 3,816,683 8,165,504 5,717,940 6,741,180 6,567,384 7,193,807 8,550,259 2,173,523 2,003,010 2,635,535 5,877,947 2,172,401 4,221,188 1,272,696 983,998 1,115,698 1,449,245 1,459,483 1,624,136 1,496,982 950,110 1,178,635 1,034,689 1,131,360 1,257,211 83,163 87,016                        ‐ ‐                                          8,671                   9,487 7,879 4,026                        ‐ ‐                                             215                      467 16,862,404        15,307,226        15,503,982        18,065,632        16,550,773        19,479,431 (2,213,380)          1,758,112           1,244,033              780,904           2,918,471           4,019,386 ‐ ‐                       ‐                        ‐                                        ‐ 30,511 468,564 169,858 1,022,186 214,856 1,836,016 686,905
(61,099) (167,088) (1,003,729) (205,724) (1,862,504) (709,025) 407,465                  2,770                18,457                   9,132                   4,023               (22,120) (1,805,915)          1,760,882           1,262,490              790,036           2,922,494           3,997,266 14,394,576        12,588,661        14,349,543        15,821,566        16,618,070        19,540,564 $       12,588,661 $    14,349,543 $     15,612,033 $     16,611,602 $     19,540,564 $     23,537,830 1% 1% 0% 0% 0% 0%

CITY OF SIERRA MADRE
Assessed Value of Taxable Property
Last Ten Fiscal Years
‐137‐
Category 2015 2016 2017 2018
Residential 1,750,546,835 $ $  1,849,086,339 $  1,958,752,239 $ 2,064,755,283 Commercial 53,659,841                     57,179,257           60,520,506          62,360,811 Industrial 7,842,250                        11,350,279           11,523,349          11,904,983 Govt. Owned 164,198                                167,478                170,032                173,432 Institutional 6,618,344                          6,423,627           17,021,358          18,196,153 Recreational 1,688,272                          1,722,001             1,748,259             1,783,221 Vacant 46,880,985                     44,273,558           46,173,712          42,633,298 Cross Reference 1,792,372                          1,968,133             1,998,146             2,038,108 Unsecured 6,657,788                          7,011,648             6,843,871             6,959,470 Total assessed value 1,875,850,885 $ $  1,979,182,320 $  2,104,751,472 $ 2,210,804,759 Tax‐Exempt Property (3,605,138)                       (3,605,138)            (3,605,138)           (3,569,824) Total taxable assessed value 1,872,245,747 $ $  1,975,577,182 $  2,101,146,334 $ 2,207,234,935 Total direct rate                 0.2231                  0.2234                  0.2243                 0.2237 Data Source:  HDL Coren & Cone
‐138‐
2019 2020 2021 2022 2023 2024
$  2,175,830,705 $  2,301,373,113 $  2,416,520,193 $    2,507,761,801 $    2,700,903,329 $  2,855,020,187 66,807,200           70,441,465           73,200,604             77,989,769             81,836,857           86,728,755 11,759,635           11,994,809           12,234,680             10,113,154             11,032,028           10,521,685 599,145                 ‐ 202,511                                            443,851                    ‐ 452,727 17,707,802           23,338,541           18,446,279             18,651,347             21,993,571           29,508,683 1,818,882             1,855,256             1,892,357               1,911,959               1,950,195             1,989,196 30,933,973           33,461,991           33,273,291             32,959,817             35,801,559           37,313,050 1,851,661             1,888,694             2,204,912               3,468,476               3,740,845             3,760,601 7,981,925             7,608,348             7,433,068             11,647,489             13,096,720           12,229,521 $  2,315,290,928 $  2,452,164,728 $  2,565,205,384 $    2,664,947,663 $    2,870,807,831 $  3,037,071,678 (3,569,824)            (3,569,824)            (3,569,824)              (3,569,824)              (3,569,824)            (3,569,824) $  2,311,721,104 $  2,448,594,904 $  2,561,635,560 $    2,661,377,839 $    2,867,238,007 $  3,033,501,854

0.2236                  0.2236                  0.2043                    0.2228                    0.2220                  0.2218

CITY OF SIERRA MADRE
Property Tax Rates
Direct and Overlapping Governments
(Rate per $100 of Taxable Value)
Last Ten Fiscal Years
‐139‐
Agency 2015 2016 2017 2018
Basic Levy 1.00000 1.00000 1.00000 1.00000
Arcadia Unified 0.07653 0.07507 0.07788 0.07551
Metropolitan Water District 0.01800 0.01800 0.02300 0.03000 Pasadena Community College Dist 0.01032 0.00872 0.00885 0.00819 Pasadena Uni fied School Dist 0.10601 0.11168 0.10673 0.10547 Sierra Madre Lighting 0.30902 0.30902 0.30902 0.30902
Total Direct & Overlapping Tax Rates 1.51988 1.52249 1.52548 1.52819 City's Share of 1% Levy Per Prop 13 0.21911 0.21911 0.21911 0.21911 Total Direct Rate 0.22310 0.22338 0.22428 0.22367
Data Source:  HDL Coren & Cone
‐140‐
2019 2020 2021 2022 2023 2024

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.05365 0.05433 0.04784 0.04774 0.04704 0.04579

0.03000 0.03000 0.03000 0.03000 0.03000 0.03000

0.00767 0.00721 0.00554 0.00899 0.00869 0.02510

0.09491 0.04531 0.02294 0.05361 0.07756 0.07911

0.30902 0.30902 0.30902 0.16848 0.00000 0.00000

1.49526 1.44587 1.41534 1.30882 1.16329 1.18000

0.21911 0.21911 0.21911 0.21911 0.21911 0.21911

0.22363 0.22363 0.20425 0.22284 0.22195 0.22179

CITY OF SIERRA MADRE
Principal Property Taxpayers
Current Year and Nine Years Ago
‐141‐
Taxpayer
Taxable
Assesed Value
% of
Net
Assesed
Value Rank
Taxable
Assesed Value
% of
Net
Assesed
Value Rank
CETT Madre Limited $12,136,675 0.65% 1 $12,360,582 0.41% 3 One Carter LLC $11,240,352 0.60% 2
City of Sierra Madre $8,723,239 0.47% 3 $8,219,071 0.27% 6 Barbera Family LP $6,987,610 0.37% 4
Ginkgo Stonehouse II LLC $5,033,858 0.27% 5
William L Sullivan Family Trust $4,872,815 0.26% 6 $5,741,111 0.19% 10 MB Equity LLC $3,775,000 0.20% 7 $29,446,640 0.97% 1
Ginkgo Stonehouse LLC $3,716,796 0.20% 8
Marie A Sullivan Trust $3,619,091 0.19% 9
ZhiHao Liu $3,568,880 0.19% 10
Kensington SM GP LLC $16,104,197 0.53% 2
Stanley A Sirott Trust $9,812,326 0.32% 4
Neil A Lavick and Marie D Clause $8,665,334 0.29% 5
Michael G and Rene C Hoffman Trust $7,219,356 0.24% 7
634 W. Sierra Madre Blvd LLC $6,228,130 0.21% 8
Richard C Wolgemuth Cotrustee $5,876,682 0.19% 9
Top Ten Total $63,674,316 3.41%       109,673,429 3.63% City Total $1,869,193,097 $3,024,842,157
Data Source:  HDL Coren & Cone
2015 2024

CITY OF SIERRA MADRE
Property Tax Levies and Collections
Last Ten Fiscal Years
‐142‐
Total Collectionsto Date
Fiscal
Year
Taxes Levied for
the Fiscal Year
Amount Percentage
of Levy
Collections of
Subsequent Years
Amount Percentage
of Levy
2015 3,929,776.21 $     $  3,837,082.58 97.64% 92,693.63 $               $  3,837,082.58 97.64% 2016 4,229,810.14             4,129,506.26 97.63% 100,303.88                    4,129,506.26 97.63% 2017 4,492,592.16             4,314,137.59 96.03% 178,454.57                    4,314,137.59 96.03% 2018 4,772,165.30             4,553,847.52 95.43% 218,317.78                    4,553,847.52 95.43% 2019 4,977,521.00             4,854,870.94 97.54% 122,650.06                    4,854,870.94 97.54% 2020 5,454,161.24             5,262,884.00 96.49% 120,330.00                    5,333,831.24 97.79% 2021 5,710,131.08             5,582,408.75 97.76% 157,211.20                    5,552,919.88 97.25% 2022 5,920,942.25             6,271,281.22 105.92% 344,332.71                    5,576,609.54 94.18% 2023 6,371,764.66             6,850,232.71 107.51% 350,085.48                    6,021,679.18 94.51% 2024 6,736,051.45             7,090,417.14 105.26% 190,647.43                    6,545,404.02 97.17% Data Source:  HDL Coren & Cone
Collected within the Fiscal
Year of the Levy
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CITY OF SIERRA MADRE
Total Direct and Overlapping Debt
As of June 30, 2024
‐143‐
Total Debt June 30, 2024 % Applicable (1)
City's Share of
Debt June 30,
2024
OVERLAPPING TAX AND ASSESSMENT DEBT:

Pasadena Area Community College District 174,690,000 $                          2.686 4,692,173 $ Arcadia Unified School District 247,145,000                             0.375 926,794 Pasadena Unified School District                              363,215,000 5.470              19,867,861 $         25,486,828
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations 2,479,229,730 $                      0.151 3,743,637 $ Los Angeles County Superintendent of Schools Certificates of Participatio                                 2,857,300 0.151 4,315 Pasadena Area Community College District Certificates of Participation 28,785,000                                2.686 773,165 City of Sierra Madre                                              ‐ 100                           ‐ $           4,521,117
TOTAL DIRECT DEBT $           7,060,638
TOTAL OVERLAPPING DEBT $         30,007,945
COMBINED TOTAL DEBT(2) $         37,068,583
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non‐bonded capital lease obligations.

Debt To Assessed Valuation Ratios:

Direct Debt 0.00%
Overlapping Debt 0.84%
Total Debt 0.99%
Data Source:  California Municipal Statistics, Inc.

Total Direct Debt Data: City of Sierra Madre Finance Department

TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT

TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

CITY OF SIERRA MADRE
Outstanding Debt by Type
‐144‐
Fiscal Year
Ended June 30, Master Lease Lease liability
Subscription
liability Total
2015 459,574 $        ‐ $                      ‐ $                      $459,574 2016 375,785            ‐                          ‐                              375,785 2017 288,119            ‐                          ‐                              288,119 2018 196,393            ‐                          ‐                              196,393 2019 100,420            ‐                          ‐                              100,420 2020                     ‐ ‐                          ‐                          ‐ 2021                     ‐ ‐                          ‐                          ‐ 2022                    ‐                   ‐ 10,439                                10,439 2023                    ‐                    4,488                  44,843       49,331 2024                    ‐                  20,752                  12,353       33,105 Source: City of Sierra Madre Finance Department
Population and Personal Income data: HDL Coren & Cone, California State Department of Finance Governmental Activities
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
‐145‐
Master Lease
Revenue Parity
Bonds Loans Total
Total Primary
Government
Percentage
of Personal
Income Per Capita
$       221,775 $        8,590,000 $     874,126 $    9,685,901 $  10,145,475 1.88% 921.23 181,341            8,165,000        728,438       9,074,779       9,450,564 1.65% 858.36 139,036            7,715,000        582,751       8,436,787       8,724,906 1.52% 794.18 ‐ 94,771                             6,940,756       7,035,527       7,231,920 1.19% 649.48 ‐ 48,457                             6,372,601       6,421,058       6,521,478 1.00% 602.95 ‐ ‐                             5,900,868       5,900,868       5,900,868 0.89% 553.81 ‐ ‐                             5,416,637       5,416,637       5,416,637 0.81% 508.37 ‐ ‐                             7,158,098       7,158,098       7,168,537 0.96% 658.82 ‐ ‐                             7,403,595       7,403,595       7,452,926 0.88% 688.75 ‐ ‐                             7,027,533       7,027,533       7,060,638 0.79% 647.23 Business‐type Activities

CITY OF SIERRA MADRE
Pledged Revenue Coverage
‐146‐
Business‐type Activities ‐ Water Fund
Debt Service
Fiscal Year
Ended June 30,
Operating
Revenues
Operation and
Maintenance
Costs Net Revenues Principal Interest Coverage
Sierra Madre Water Revenue Refunding Bonds, Series 1998A Sierra Madre Water Revenue Parity Bonds, Series 2003
2015 4,373,849 $ $          2,574,322 $      1,799,527 $405,000 $441,470                 2.13 2016 4,498,726                  2,348,112 2,150,614 425,000 420,720 2.54 2017 5,249,123                  2,567,912 2,681,211 450,000 398,845 3.16 2018 5,521,322                  2,319,129 3,202,193 258,284 186,735 7.20 City of Sierra Madre Installment Purchase Agreement**
2019 5,611,440                  2,364,338 3,247,102 422,467 257,981 4.77 2020 6,954,132                  1,905,193 5,048,939 326,046 243,699 8.86 2021 8,934,480                  2,824,490 6,109,990 338,543 231,875 10.71 2022 6,655,722                  4,059,012 2,596,710 350,161 216,112 4.59 2023 6,446,169                  4,952,653 1,493,516 362,881 201,560 2.65 2024 6,707,324                  4,928,918 1,778,406 376,062 188,964 3.15 ** The City determined that paying the prior installment sales agreements for the Revenue Bonds listed above with the proceeds from the 2017 Installment Purchase Agreement, would reduce the City's interest expense payable from Water Revenues.

Funding was provided by Holman Capital Corporation and the City's Reserve Funds totaling $6,761,976. The The proceeds were sufficient to defease the Revenue Bonds on November1, 2017, thereby satisfying and terminating the City's obligations under the prior installment sales agreements and indentures. Funding took place on October 31, 2017.

As with the original Revenue Bonds, the City irrevocably pledged all of the Net Water Revenues to the payment of the 2017 Installment Payments, and is a first priority lien on the collateral.

Source: City of Sierra Madre Finance Department
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

CITY OF SIERRA MADRE
Pledged Revenue Coverage
‐147‐
Governmental Activities
Debt Service
Fiscal Year
Ended June 30, Tax Increment(1) Principal Interest Coverage 2015(2) $                738,195 $          300,000 $            94,000                        1.87 2016(2) 528,157 315,000 78,625 1.3                         4 2017(2) 567,950 330,000 62,500 1.45
2018(2) 581,097 345,000 45,625 1.49
2019(2) 190,991 360,000 28,000 0.49
2020
(2) 215,315 380,000 19,000 0.5                         4 2021(2)                             ‐ ‐                       ‐                       ‐ 2022(2)                             ‐ ‐                       ‐                       ‐ 2023(2)                             ‐ ‐                       ‐                       ‐ 2024
(2)                             ‐ ‐                       ‐                       ‐ (1)  Tax increment figures are net of related pass‐through payments,  beginning in 2008‐2009, the City began paying AB1389 pass through payments.
(2)  Due to the dissolution of the Community Redevelopment Agency, the Tax Allocation Bonds were transferred to the Successor Agency. This funding represents the Private Purpose Trust Fund.

Source: City of Sierra Madre Finance Department
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

CITY OF SIERRA MADRE
Demographic and Economic Statistics
‐148‐
Calendar
Year Population
Personal
Income (In
Thousands)
Per Capita
Personal
Income
Unemployment
Rate
Median
Age
% of  Pop
25+ with
High School
% of  Pop 25+
with Bachelor's
Degree
2014 11,098 $545,034 $49,111 5.5% 47.3 96.8% 59.1%
2015 11,013 541,092 49,132 4.5% 45.8 97.5% 61.5%
2016 11,010 573,499 52,088 3.5% 46.2 98.4% 63.7%
2017 10,986 575,612 52,395 2.7% 45.0 99.2% 65.1%
2018 11,135 608,795 54,674 3.7% 46.6 99.3% 63.3%
2019 10,816 655,093 60,567 4.5% 47.6 98.7% 62.4%
2020 10,655 664,995 62,411 14.6% 49.0 98.4% 60.8%
2021 10,865 745,581 68,622 6.7% 47.5 98.5% 62.9%
2022 10,821 850,058 78,556 3.3% 48.3 98.5% 63.4%
2023 10,909 894,424 $81,989 3.3% 46.6 98.1% 64.7%
Data Source:  HDL Coren & Cone, California State Department of Finance, Cali fornia EDD, Us Census

CITY OF SIERRA MADRE
Top 25 Sales Tax Producers
For Fiscal Year Ended June 30, 2024
‐149‐
Business Name Business Category
ACDC Apparel Family Apparel
Bottle Shop Convenience Stores/Liquor
Buccaneer Lounge Casual Dining
Casa Del Rey Casual Dining
Corfu Restaurant Casual Dining
Frontier Hardware Co Building Materials
Happy's Liquor Convenience Stores/Liquor
K Petrol Service Stations
Leonora Moss Florist Shops
Lucky Baldwins Delirium Café Casual Dining
Moes Automotive Service Center Auto Repair Shops
Monsieur Crepe Casual Dining
Nano Café Casual Dining
Ohmonah Family Apparel
Only Place in Town Casual Dining
Roe Japanese Fusion Casual Dining
Rt Rogers Brewing Co Casual Dining
Sierra Madre Pizza Co Quick‐Service Restaurants
Sierra Madre Service Station Service Stations
Starbucks Quick‐Service Restaurants
Tacos Ensenada Dom Quick‐Service Restaurants
Taylors Ol Fashioned Meat Market Food Stores Non‐Grocery Village Pizzeria Fast‐Casual Restaurants
Wistaria Restaurant & Bar Casual Dining
Yui Casual Dining
Data Source:  HDL Coren & Cone
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CITY OF SIERRA MADRE
Full‐Time Equivalent City Government Employees by Function ‐150‐
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government 11 11 11 13 12 15 11 16 16 16
Public Safety
Police
Officers 17 17 17 17 15 11 17 16 17 18
Civilians 7 6 6 7 7 11 5 6 5 5
Fire 16 18 19 19 20 16 16 17 18 17
Public Works 18 18 19 18 16 16 18 19 19 19
Development 4 5 5 5 5 4 4 5 6 6
Library and Recreation 13 12 13 14 12 13 12 9 9 9
Total 86 87 90 93 87 86 83 88 90 90
Source: City of Sierra Madre Finance Department

CITY OF SIERRA MADRE
Operating Indicators by Function
‐151‐
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Police
Number of:

Physical Arrests 327                      214           248            223            231            210            178            218            107              88 Parking Violations 2,764              1,797       2,596        1,705        1,127            225        1,161        1,243            820        1,642 Traffic Violations 571                      727           837        1,210        1,216        1,051            912            824            718            984 Fire
Number of:

Calls Answered 970                  1,036       1,107        1,102        1,097        1,197        1,088        1,230        1,382        1,454 Inspections 1,739              1,678       2,084        1,687        1,905        1,935        2,012        1,825        1,673        1,879 Public Works
Number of:

Water Mains Repaired 58                        550           388            395            374            303            403            391            338            284 Water service leaks repaired 7                            19             30              46              62              78              76              77              68              79 Street resurfacing/repair (SF) 284,790    ‐               142,500    454,000    705,270    180,000    136,600    130,000      70,000      77,000 Sidewalk Repairs (SF) 4,605              3,000       4,700        9,500        3,250        6,500        2,000        4,400      11,400      13,500 Trees planted             ‐ ‐                         12              16              31              15              15              16              12              25 Trees pruned 37                          24             38              43              16              15              47              55              85              50 Trees removed 62                          75             75              68              44              50              15              26              19              10 Sewer cleaned/inspected (LF) 167,168      186,176   146,000    120,817      98,000      80,000    148,316      50,000    103,000      70,000 Sewer Manhole inspected (each) 676                      620           433            473            380            211            380            210            259            130 Sewer lines inspected (LF) 1,064              1,000        ‐ 2,045              ‐              ‐                      ‐ 1,000                   30,000      18,000 Meters replaced 168            ‐                       172            507            643            605            106            160            400            195 Valves exercised 284                      267                ‐ 3                           60            605            600            564            350            252 Pot holes repaired 380                      575           657            727             ‐ 622              ‐                         423            600            440 Water Mains Replaced (LF) 2,870              1,750       1,200        2,000        5,800        7,095        6,000        5,300        5,000        2,150 Recreation and Community Services
Number of participants:

Recreation classes           731           371           271            217 n/a n/a n/a n/a n/a n/a Aquatic (1) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Summer pool memberships n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Annual Events (2)
Movie Series 1,400              1,500       1,700        1,850        1,900        2,200        1,000        1,500        1,550        1,650 Concert Series 4,835              4,400       4,600        4,800        5,600        5,800 n/a 6,000                4,000        4,300 Summer Fun in the Park 293                      305           265            261            285            291            150            204              89 n/a Huck Finn (campsites) 63                          63             50              36              48 n/a             ‐ n/a n/a n/a Mt. Wilson Trail Race (Adult Runners) 325                      346           337            332            350 n/a 300                        349            350            350 Window Painting n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Halloween Happenings           150           157           107            115            126            130            200            250            250            350 Family Night Camping Under the Stars n/a n/a n/a n/a n/a n/a n/a n/a 36               n/a Bark in the Park n/a n/a n/a n/a n/a n/a n/a n/a n/a            100 Excursions n/a 511                      477            464            569             ‐ 262                           25              37            106 Senior Program Activi ties
Senior Meals n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,111
Chair Yoga n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,611
Book Club n/a n/a n/a n/a n/a n/a n/a n/a n/a 54
Senior Cinema n/a n/a n/a n/a n/a n/a n/a n/a n/a 98
Hula n/a n/a n/a n/a n/a n/a n/a n/a n/a 1,280
Excursions n/a n/a n/a n/a n/a n/a n/a n/a n/a 106
Crafts n/a n/a n/a n/a n/a n/a n/a n/a n/a 119
Bingo n/a n/a n/a n/a n/a n/a n/a n/a n/a 409
Real Estate n/a n/a n/a n/a n/a n/a n/a n/a n/a 6
Blood Pressure n/a n/a n/a n/a n/a n/a n/a n/a n/a 5
Medicare Pres n/a n/a n/a n/a n/a n/a n/a n/a n/a 4
Holiday Lunch n/a n/a n/a n/a n/a n/a n/a n/a n/a 52
Valentine's Day n/a n/a n/a n/a n/a n/a n/a n/a n/a 35
St. Patricks n/a n/a n/a n/a n/a n/a n/a n/a n/a 19
Older American n/a n/a n/a n/a n/a n/a n/a n/a n/a 38
Yard Sale n/a n/a n/a n/a n/a n/a n/a n/a n/a 45
Data Source: Various City of Sierra Madre Departments

CITY OF SIERRA MADRE
Operating Indicators by Function, (continued)
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Library
Number of:

Registered borrowers 10,530      11,429 11,574 11,098            14,162      10,175        8,787        8,212        8,158        7,882 Circulation 85,779      113,272 97,829 114,432        115,572      97,870      84,675    103,616    108,873      91,294 Reference 6,548        6,493 5,237 5,066                4,868        4,686        4,837        4,626        5,304        4,517 Book volumes held 56,891      47,746 41,680 39,164            40,126      39,949      41,212      43,249      44,780      45,515 Use of electronic content 14,798      17,678 16,612 14,141            17,809      13,954      11,637      32,958      65,035      12,145 Media 6,307        18,238 6,084 5,904                5,892        5,545        5,707        5,708        5,719        5,570 Periodicals 98              61 95 82                            73              71              72              67              61              66 Municipal Utilities
Number of:

Number of Customers
Residential 3,550              3,489       3,565        3,501        3,654        3,624        3,600        3,568        3,594        3,485 Non‐Residential 204                      195           210            193            163            248            190            215            186            206 Water Consumption in Units (000's) 821                      667           925            765            741            860        1,179            847            867        1,895 Administrative Services
Number of:

Number of Customers
Online Bill Pay (average) 211                      246           288            333            421            435            965        1,371        1,424        1,511 Business Licenses Issued 1,374              1,276       1,438        1,665        1,584        2,767        1,323        1,347        1,843        1,419 Development Services
Number of:

Accessory Dwelling Unit Permit n/a n/a n/a 1                              10              24              20              25              22              24 Conditional Use Permit 37 5                              6                 ‐ 7              ‐                             1                6                2                2 Minor Conditional Use Permit 7                              2               5                5                4                1                2                7                4                3 Design Review              11              13              14                7                4 Variance 1                               ‐ 1             ‐                   ‐ 1              ‐                 ‐ 1              ‐ Minor Variance 1                              2                ‐ 2                 ‐ 3              ‐ ‐              ‐              ‐ Municipal Code Text Amendment 6                              5                ‐ 7                 ‐ 5                             7                8                1                3 Building Permit 231                      230           274            281            258            320            260            351            333            384 Electrical Permit 159                      174           206            223            223            203            215            194            286            289 Mechanical Permit 129                      100           128            135            140            117            109            122            133            151 Plumbing Permit 215                      194           204            230            191            141            136            130            152            213 Sewer Permit 3                            14             23                2                7                3                6                8                7              21 Data Source: Various City of Sierra Madre Departments
* Account Class categories changed as of March 2014 in line with the Water Rate Study.

CITY OF SIERRA MADRE
Capital Assets – Book Value (excludes construction in progress) ‐153‐
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019
Roadways
Pavement AC (Governmental Funds) 11, $     331,409 $    10,731,909 $          9,854,028 $      9,549,273 $    10,482,847 Street Appurtenances
Bridges (Governmental Funds) 38,044                              29,591                   21,137               12,682                  4,227 Parks
Park Structures (Governmental Funds)             133,376             267,258                 392,374             371,422             350,470 155,976                       ‐ ‐                           ‐                       ‐ Trees (Governmental Funds) 1,206,214                    1,206,214             1,206,214          1,206,214          1,206,214 Wastewater
Manholes (Sewer) 701,169                          672,551                 643,932             615,313             586,693 Sewer Pipelines (Sewer) 2,993,188                    2,576,706             2,469,342          2,361,979          2,254,616 Domestic Water Network
Spreading Basins (Water) 1,061,345                    1,025,528                 989,710             953,893             918,075 Pump Stations (Water)          1,378,488          1,322,223             1,265,958          1,209,694          1,153,429 Pipelines (Water) 3,731,255                    4,141,639             4,143,901          4,352,079          5,620,212 Pressure Reducing Stations (Water) 267,915                          250,630                 233,345             216,061             198,776 Fire Hydrants (Water) 155,140                          144,440                 133,741             123,042             112,343 Wells (Water) 623,345                          580,356                 537,366             494,377             451,387 Reservoirs (Water) 13,381,279              13,174,440           12,967,602       12,760,764       12,553,926 Buildings All
Buildings (Water Fund) 127,300                          118,766                 110,328             101,799               93,316 Buildings (Sewer Fund)             127,300             118,813                 110,284             101,840               93,353 Buildings (Governmental Funds ) 5,733,392                    5,642,913             5,409,185          5,175,456          5,127,521 Buildings (Governmental‐ISF Facilities)                       ‐ ‐                       ‐                                         61,379               60,152 Land All
Land (Water Fund) 1,           483,250          1,483,250             1,483,250          1,483,250          1,483,250 Land (Governmental Funds)     162,275,946     162,275,946         162,275,946     162,275,946     162,275,946 General Equipment All
Vehicle & Equipment (Water Fund) 30,890                              59,040                   71,118               62,638               54,158 Vehicle & Equipment (Sewer Fund) 292,587                          230,880                 169,174             107,464               45,756 Vehicle & Equipment (Governmental Funds)             541,302             501,492                 387,136             555,906          1,089,507 Vehicle & Equipment (Governmental‐ISF fleet) 591,833                          654,076                 821,597              ‐ 745,502 Software (Governmental‐ISF Administration) 314,619                          394,552                 333,326             272,087             210,851 Right‐to‐use All
Equipment (Governmental‐ISF Funds )                      ‐                       ‐ ‐                           ‐                       ‐ Subscription (Governmental Funds)                       ‐ ‐                       ‐                           ‐                       ‐ Subscription (Governmental‐ISF Funds)                       ‐ ‐                       ‐                           ‐                       ‐ Total 208,676,562 $   $  207,603,213 $     206,029,994 $  205,170,057 $  206,427,024 Data Source: Various City of Sierra Madre Departments
‐154‐
Fiscal Year Ended June 30,
2020 2021 2022 2023 2024
$    11,776,829 $    12,434,068 $    13,061,359 $    12,785,167 $    13,643,337 ‐ ‐                       ‐                       ‐                       ‐ 329,873          1,335,386          1,289,681          1,251,585          1,213,490 ‐ ‐                       ‐                       ‐                       ‐ 1,206,214          1,206,214          1,206,214          1,206,214          1,206,214 558,074             529,455             500,836             472,217             443,598 2,147,252          2,039,889          1,932,526          1,825,163          1,717,800 889,342             928,331             904,256             880,182             856,108 1,097,164          1,040,899             984,634             928,370             872,105 5,421,687          5,150,194          5,069,663          9,071,597          9,048,576 181,491             164,206             146,921             129,636             112,352 101,643               90,944               80,245               69,545               58,846 408,398             783,648             744,588             705,528             666,468 12,347,088       12,140,250       11,933,412       11,726,574       11,519,736 84,833               76,349               67,866               59,383               50,900 84,866               76,380               67,893               59,406               50,920 5,033,771          4,922,200          4,784,529          4,601,102          4,417,675 58,924               87,673             202,175             584,119             566,250 1,483,250          1,483,250          1,483,250          1,483,250          1,483,250 162,275,946     162,275,946     162,275,946     162,275,946     162,275,946 882,988             846,597             810,207             773,816             737,426 13,039             448,910             504,459             446,451             390,305 1,051,061          1,625,563          1,680,739          1,650,546          1,478,605 ‐ ‐                       ‐                       ‐                       ‐ 149,613             112,223               72,802               57,583               42,363 ‐ ‐                                     10,474                  4,573               21,206 ‐ ‐                       ‐                                     22,636               14,147 ‐ ‐                       ‐                                     25,101                  3,924 $  207,583,346 $  209,798,576 $  209,814,675 $  213,095,690 $  212,891,547 This page intentionally left blank
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
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REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable City Council
City of Sierra Madre
Sierra Madre, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Sierra Madre (the entity) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated December 20, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a certain deficiency in internal control, described in the accompanying Schedule of Findings and Responses as item 2024-001 that we consider to be a significant deficiency.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the entity’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Entity’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the entity’s response to the findings identified in our audit and described in the accompanying Schedule of Findings and Responses. The entity’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

San Bernardino, California
December 20, 2024
City of Sierra Madre
Schedule of Findings and Responses
Year Ended June 30, 2024
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2024-001 – Year End Accounting and Reconciliation Processes Significant Deficiency
Criteria:

Government Auditing Standards require that financial information be accurate and reliable to support decision-making and external reporting. Effective monitoring procedures and closing processes are essential to ensure the accuracy of financial statements. For the year ended June 30, 2024, errors were identified in certain balance sheet accounts, resulting from ineffective monitoring and closing procedures. These errors resulted in misstatements to the entity’s financial statement that required audit adjustments, indicating that management’s review and monitoring of financial information were not effectively performed.

Condition:

A significant number of journal entries were posted during and after the audit process, including adjustments identified during the audit. These postings highlight gaps in the entity’s accounting and reporting processes.

Cause:

The issues arose partly due to a failure to properly prepare and reconcile schedules to the general ledger and an incomplete closure of the books before the audit began.

Effect:

These deficiencies in the entity’s accounting and reporting processes led to delays in completing its financial statements and the audit.

Recommendation:

To address these issues and improve the financial closing and reporting process, we recommend that the entity establish a detailed and formalized financial closing procedure. This procedure should ensure that all accounts are fully reconciled, including supporting schedules, and that these schedules are fully reconciled to the general ledger before the audit begins. Additionally, we recommend implementing a robust monitoring and review process to detect and correct errors promptly, as well as providing training for staff involved in financial reporting to strengthen their understanding of the requirements and establish clear deadlines to ensure the timely and accurate completion of the reconciliation and closing processes. These steps will help mitigate the risk of errors and delays in financial reporting, enhance the reliability of the entity’s financial information, and ensure a smoother audit process.

Management’s Response:

The City’s Finance Team is dedicated and fully compliant with review policies and procedures.

There is a checks and balance system whereby all full cycle accounting functions are reviewed and verified for accuracy and completeness at all times. Despite limited resources, the City City of Sierra Madre
Schedule of Findings and Responses
Year Ended June 30, 2024
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diligently prepared and submitted all requested materials in a timely manner as part of the "provided by client" (PBC) process. This demonstrates the City’s dedication to facilitating a smooth audit process and cannot be construed as a deficiency in the City’s accounting and reconciliation processes.

While we acknowledge that adjustments were necessary, it is important to emphasize that these adjustments were implemented to ensure the accuracy, validity, and compliance of the financial statements with Generally Accepted Accounting Principles (GAAP). These adjustments highlight the City’s commitment to transparency and the proactive identification and rectification of discrepancies as part of our internal control measures. Despite these adjustments, the Finance Department met all critical deadlines and provided timely, accurate information to auditors, even during a transition in leadership.

The departure of the Finance Director from July through December 2024 presented unique challenges for the Finance Department. The remaining staff demonstrated their commitment and capability by reconciling accounts, preparing accurate schedules, and addressing necessary adjustments in a timely manner to maintain the integrity of the financial statements.

The City remains steadfast in its commitment to maintaining high standards in accounting, financial reporting, and audit preparedness. As part of our continuous improvement efforts, we will further enhance the alignment of resources and audit schedules to ensure even greater efficiency in future audit cycles.

The City appreciates the auditors’ feedback and remains committed to continuously enhance transparency, reliability, and efficiency in the City’s financial processes. 735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
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PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
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ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
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December 20, 2024
To the Honorable City Council
City of Sierra Madre
Sierra Madre, California
We have audited the financial statements of the City of Sierra Madre (the entity) as of and for the year ended June 30, 2024, and have issued our report thereon dated December 20, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated May 8, 2024, our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of the system of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the system of internal control of the entity solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

We have provided our findings regarding significant control deficiencies over financial reporting and material noncompliance, and other matters noted during our audit in a separate letter to you dated December 20, 2024. -2-
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

We have evaluated whether certain nonattest services performed by our firm during the audit have created a significant threat to our independence in relation to the entity. We have identified a threat to our independence (preparation of the entity’s financial statements, creating a self-review threat) that if not reduced to an acceptable level, would impair our independence. In order to reduce the threat to an acceptable level, we have applied the following safeguard:

Prior to the issuance of the entity’s financial statements, another partner or manager, independent of the engagement, will review the financial statements.

Significant Risks Identified
We have identified the possibility of the following significant risks:

Management's override of internal controls over financial reporting – Management override of internal controls is the intervention by management in handling financial information and making decisions contrary to internal control policy.

Revenue recognition – Revenue recognition is a generally accepted accounting principle that refers to the conditions under which an entity can recognize a transaction as revenue. Auditing standards indicate that recognizing revenue is a presumed fraud risk and usually classified as a significant risk in most audits.

These significant risks are presumptive in most audits and merit attention by the auditors due to the direct impact over financial reporting and internal control processes. Although identified as significant risks, we noted no matters of management override of controls or deviations from generally accepted accounting principles which caused us to modify our audit procedures or any related matters which are required to be communicated to those charged with governance due to these identified risks.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the entity is included in Note 1 to the financial statements. There have been no initial selection of accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
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The most sensitive accounting estimates affecting the entity’s financial statements are:

Management’s estimate of the net pension liability and related deferred inflows and outflows of resources are based on actuarial reports by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Management’s estimate of the liability for other post-employment benefits (OPEB) and related deferred inflows and outflows of resources are based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users.

The most sensitive disclosures affecting the entity’s financial statements relate to:

The disclosure of net pension liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions. Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

The disclosures of the other post-employment benefits (OPEB) liability and related deferred inflows and outflows of resources in the basic financial statements is based on actuarial assumptions.

Actual future liabilities and actuarial deferred inflows and outflows may vary from disclosed estimates.

Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected misstatements noted.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion unit
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the entity’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
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Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 20, 2024.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the entity, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity’s auditors.

Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the entity’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.

However, in accordance with such standards, we have:

Read the transmittal letter and statistical section and considered whether a material inconsistency existed between the other the information and the basic financial statements, or the other information otherwise appears to be materially misstated. 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.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council and management of the entity and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours,

387234.1

City of Sierra Madre
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Aleks Giragosian, City Attorney
REVIEWED BY: Jose Reynoso, City Manager
DATE: January 28, 2024
SUBJECT: ORDINANCE NO. 1476 ESTABLISHING ADMINISTRATIVE

REMEDIES PROCEDURE FOR CHALLENGES TO FEES,

CHARGES, AND ASSESSMENTS

STAFF RECOMMENDATION
Staff recommends the City Council conduct a second reading and adopt Ordinance No. 1476.

ALTERNATIVES

1. Do not conduct a second reading of Ordinance No. 1476.

2. Provide alternative direction to staff.

SUMMARY
Assembly Bill No. 2257 (“AB 2257”) (adding Government Code sections 53759.1 and 53759.2) provides the City with a new tool to defend against challenges to fees, charges, and assessments adopted under Proposition 218. If the City follows certain procedures, a ratepayer who fails to submit a written objection before the close of the Proposition 218 protest hearing will be barred from challenging the fee, charge, or assessment later on. The attached ordinance was intentionally drafted to be broader than AB 2257, while still applying AB 2257’s procedures, to capture all fees, charges, and assessments levied by the City.

ANALYSIS
Proposition 218, the Right to Vote on Taxes Act, was enacted by the voters in 1996 to provide procedural and substantive requirements for the imposition of property-related fees. (Cal.

Const. art. XIIID, § 6(a), (b).) The courts have held that the stated intent of Proposition 218 is that its provisions are to be liberally construed to effectuate its purpose of limiting local government revenue and enhancing taxpayer consent. (Hill RHF Housing Partner, L.P. v. City of Los Angeles (2021) 12 Cal.5th 458, 475.)
Robert Parkhurst, Mayor
Kristine Lowe, Mayor Pro Tem
Gene Goss, Council Member
Kelly Kriebs, Council Member
Edward Garcia, Council Member
Sue Spears, City Treasurer