EXHIBIT "C"
(Consultant's Terms of Services)
5116863.1-L235.0
l\,la
267
Exhibit C
Mi E E D E R
Terms of Services Discretionary Accounts
Meeder Public Funds
The following Terms of Services are applicable to services offered by Meeder Public Funds, Inc. ("Meeder") andshall be incorporated into any agreement for investment advisory services ("Agreemenf')
1. Investment Management Services. Client appoints Meeder as discretionary investment manager toinvest, reinvest and manage the securities, cash and other assets of the Account subject to the investmentguidelines ("Investment Guidelines") provided by Client.
2. Trading Authorization. Client grants Meeder discretionary trading authority and appoints Meeder as agentand attorney-in-fact with respect to investments in the Account. Meeder may direct the purchase, sale, exchange,conversion, delivery or other acquisition or disposition of securities and other investments in the Account and act onbehalf of Client in all other matters incidental to the handling of Account investments, all without prior consultationwith Client.
3. Custody. Meeder will not assume physical custody of the Account or any portion of it. Client shall establisha custodial account with a qualified custodian ("Custodian"). Client will receive From the Custodian accountstatements and confirmations identifying assets and transactions in the Account. All transactions will beconsummated by payment to, or delivery by, the Custodian of all cash, securities and other assets due to or fromthe Account. The Custodian shall be responsible for investing any daily cash balances in the Account and Meederwill not exercise discretion to select sweep vehicles for the Account.
4. Investment Objectives and Restrictions. Client may provide Meeder with an Investment PolicyStatement or other written directions setting forth the investment objectives and any specific investment restrictionsor limitations which govern the Account. Meeder shall be entitled to rely on such guidelines, objectives andrestrictions relating to the Account as it may receive from Client. It is Client's responsibility to inform Meeder inwriting of any changes or modifications to these directions, which shall be given ten days in advance of any suchchange. 5, Fees. For the services provided in accordance with this Agreement, Client shall pay Meeder an annual fee("Fee") on terms set forth in the Agreement to which these Terms of Service apply. Where Client has elected tohave fees deducted from the Account, Client authorizes the Custodian to deduct fees from the Account and paythem to Meeder. The account statements will reflect the fee amount withdrawn in any period. Client is responsiblefor notifying Meeder of any exceptions or objections to the amount billed within thirty days from the billing date.
6. Brokerage. Unless otherwise directed, Meeder will place trades for the Account through such brokers ordealers as it may select. When selecting brokers, Meeder's primary consideration will be the broker's ability toprovide best execution of trades and Meeder may consider the quality and reliability of the brokerage services,trade price and commission, as well as research and other services provided by the broker-dealers.
7. Trade Aggregation. Meeder may aggregate trades for multiple clients when, in the adviser's judgment,aggregation is in the best interests of the clients involved. Orders are aggregated to facilitate best execution andeach client participating in the aggregated transaction receives the same price and participation in such trade on apro-rata basis. Where it is not possible to obtain the same execution price for all securities purchased or sold on anaggregated basis, Meeder will Tollow its trade allocation policy, which is designed to ensure that securitiesallocations are made in a fair and equitable manner.
8. Promoter Arrangements. Meeder accepts Clients referred through unaffiliated third parties ("Promoters")and may pay cash compensation for the endorsement of Meeder's services, which provides the Promoter with anincentive to refer clients. Clients will not incur additional fees for being referred to Meeder by a Promoter. Clients 268
that engage Meeder as their investment adviser following a referral by a Promoter will receive a written disclosure statement describing the nature and terms of the arrangement, including the amount payable to the Promoter. 9, Local Government Investment Pools. Where appropriate, Meeder may recommend the use or a Local Government Investment Pool ("LGIP") in which Meeder or one of its affiliates earn advisory and/or administration fees. Assets placed in an LGIP are not included among eligible assets when calculating the investment advisory fee. Because Meeder or its affiliates receive fees in connection with programs we sponsor or recommend, use of these programs presents a conflict of interest. By investing in an LGIP, Client specifically consents to the conflicts presented by such investment and payment of fees.
10. Custodial Sweep Vehicles. Where available, Meeder may recommend the use of the Meeder Government Money Market Fund as a vehicle to sweep cash held in the custodial account for investment. Because Meeder's affiliates earn advisory, transfer agency and administration fees for management of the Meeder Goverrimerit Money Market Farid, reccmmenda+,icri of the fiJnC' aS a sweep Vehicle presents a COnfl!Ct Of interest.
Meeder charges investment advisory fees on the total market value of assets held in the custodial account, includirig sweep vehicles. By se!ecting the Meeder Government Money Market Fund, Client specifica(ly consents to the conflicts presented by such investment and payment of fees. 11, Third-Party Payments. Meeder or its affiliates receive compensation from unaffiliated third parties for endorsing or recommending certain financial products to its clients. This arrangement presents a conflict of interest because it provides Meeder with an incentive to solicit and secure participation in the program. Asset-based advisory fees are not charged for assets invested in products that pay indirect compensation to Meeder.
12. Proxy Voting. Meeder does not accept or assume authority to vote proxies for its public fund clients.
Clients will receive their proxies or other solicitations directly from their Custodian. Client agrees that Meeder will not advise or act for Client in any legal proceedings, including bankruptcies or class actions, involving securities held or previously held by the Account or the issuers of such securities.
13. Electronic Delivery. Client consents to electronic delivery of all documents from Meeder, including but not limited to a copy of the executed Agreement, statements, confirmations, Meeder's Form ADV Part 2 and amendments thereto, and other general communications delivered to Client's electronic mail address of record.
Delivery of communications to Clients in this fashion will be deemed effective unless Meeder is notified otherwise.
Client is responsible for maintaining an accurate and up to date email address and to ensure that Client at all times has the ability to receive communications directed in this manner.
14. Confidentiality. All information and advice furnished by either party to the other, including their respective agents and employees, shall be treated as confidential and shall not be disclosed to third parties except as otherwise required by law or as agreed to in writing by Client. Notwithstanding the foregoing, Client consents to the use of Client's name in sa!es and marketing material used by Meeder or its affiliates solely for the purpose of identifying the Client as an investment advisory client.
15. Services to Other Clients. Client understands that Meeder serves as investment adviser for other Clients and will continue to do so. Client also understands that Meeder, its personnel and affiliates ("Affiliated Persons") may give advice or take action in performing their duties to other clients, or for their own accounts, that differ from advice given to or action taken for Client. Meeder is not obligated to buy, sell or recommend for Client any security or other investment that Meeder or its Affiliated Persoris may buy, sell or recommend for any other client cr their own accounts.
16. Meeder's Representations. Meeder represents that it is a registered investment adviser under the Investment Advisers Act of 1940.
17. Client's Representations. Client represents and acknowledges that: (i) Client is the sole owner of the Account assets and has full power and authority to enter into this Agreement and to commit the assets to Meeder's management and supervision; (ii) that the person signing this Agreement on behalf oT Client is authorized and empowered to establish accounts and commit the assets to Meeder's management and supervision on the entity's behalf; (iii) Client has received Meeder's current Form ADV, Part 2A and B; and (iv) Client has received a copy of Meeder's Privacy Policy.
MPF Terms oT Services - MPF 005 (7-25) Page 2
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269
M A Ij-i 'i - '7't
Item No. 7
CITY COUNCIL
AGENDA BULL
DepartmentDirector:
For the Regular Meeting o'f: March 10, 2026
Originatin Department: Public Works
o Cerv Rob Hofisto';x
SUBJECT: PURCHASE OF CITY FLEET VEHICLES
CHEVROLET SILVERADO TRUCKS (PUBLIC WORKS)
DETECTIVE VEHICLES (POLICE DEP ARTMENT)
- SIX (6)
AND TWO
ELECTRIC
(2) POLICE
PURPOSE: The City Council is asked to authorize two related vehicle purchases to address aging fleet needs across two departments. Public Works is requesting approval to purchase six (6) 2026 Chewolet Silverado electrictrucks to replace aging vehicles in the fleet. This purchase would substitute the previously City Council-authorized Ford F-150 Lightning trucks, which have since been discontinued by the manufacturer. Concurrently, the Police Department is requesting authorization to purchase two (2) detective vehicles to replace high-mileage units that have exceeded their useful service life, transitioning from a lease-financing model to a direct purchase to reduce long-ten'n costs to the City.
RECOMMENDED ACTIONS: The City Council will consider:
a. Authorizing the purchase of six (6) 2026 Chevrolet Silverado electric trucks, or a comparable electric truck if unavailable, from National Auto Fleet Group through the Sourcewell Cooperative Purchasing Program, to replace Public Works Department's trucks, in an amount not to exceed $379,356 ($63,226 per truck); and b. Approving the purchase of two (2) detective vehicles for the Police Department in a total amount not to exceed $98,000;
c. Authorizing the City Manager, or his designee, to execute all documents necessary to complete the purchases in a form acceptable to the City Attorney.
FISCAL IMPACT: There is no impact to the General Fund for the electric truck purchase. Funding is available within the Fiscal Year (FY) 2025/26 0perating Budget as follows:
No. of Trucks Purchase
Public Works Department Budget
4 2
6 $252,904
$126,452
$379,356
AQMD Funds
Water Funds
1 270
For the detective vehicle purchase, the FY 2025/26 budget includes $24,000 in the Rents and Leases, originally designated for a lease-to-own arrangement. By transitioning to a direct purchase, the City avoids embedded interest and financing fees, with staff estimating approximately $25,000 in cost avoidance over the vehicles' life cycle. The remaining $74,000 will be appropriated from the Capital Asset Equipment Replacement Fund. The combined total not to exceed $98,000 is structured as a not-to-exceed authorization to accommodate fluctuations in vehicle inventory and pricing.
No. of Trucks Purchase Price Funding Source
Police Department Budget
2 $24,000 Rents and Leases
AccountNo. 100-506-21-6301
$74,000 Capital Asset Equipment Replacement
AccountNo. 523-506-21-9003
2 $98,000
The appropriation requests for these vehicles are part of the FY 2025/26 Midyear Report; no additional appropriation requests are needed.
ANALYSIS:
Public Works - Electric Trucks
The Public Works Department operates 90 vehicles essential to maintaining the City's streets, sewers, and water infrastructure. Six aging trucks, that are used by the Street and Sewer Division and Water Division, have exceeded their recommended service life and are proposed for replacement. These vehicles exhibit high maintenance costs, frequent breakdowns, and elevated emissions.
Staff recommend replacing them with 2026 Chevrolet Silverado electric trucks. On August 26, 2025, the City Council authorized the purchase of Ford F-150 Lightning electric trucks for this purpose; however, Ford subsequently discontinued that model. The Chevrolet Silverado is the recommended substihite.
Electric trucks reduce fuel costs, lower emissions, and support compliance with California Air Resources Board (CARB) requirements. New vehicles will be outfitted with safety lighting, toolboxes, and required equipment before being placed into service, with delivery expected approximately 16 weeks after Council approval.
Police Department - Detective Vehicles
The Police Detective Bureau relies on dependable vehicles for investigations, surveillance, interagency coordination, and task force assignments. Two vehicles are proposed for replacement:
* Unitl37-2008DodgeCharger,approximatelyl36,000miles(FleetMasterPlancalledfor retirement in 2021); and
2 271
* Unit 175 - 2013 Dodge Charger, approximately 186,000 miles (Fleet Master Plan called for retirement in 2021).
Both vehicles have exceeded their optimal service life and are experiencing increasing maintenance demands. The Police Chief has reviewed and accepted the NCL Tax Exempt Municipal Lease Proposal dated January 28, 2026; however, upon further financial analysis, direct acquisition is recommended as the more cost-effective approach. The not-to-exceed authorization allows staff to procure substantially equivalent vehicles if specific inventory is unavailable prior to purchase order issuance.
Procurement Approach
Both vehicle purchases will be made through the Sourcewell Cooperative Purchasing Program under Contract No. 091521-NAF with National Auto Fleet Group (72 Hour LLC dba National Auto Fleet Group). Sourcewell is a State of Minnesota local government unit that administers competitively bid cooperative contracts available to public agencies nationwide. Use of this contract satisfies the City's competitive purchasing requirements under the South Gate Municipal Code, eliminating the need for a separate formal bid process while ensuring fair and transparent pricing.
BACKGROUND: The City maintains a Fleet Master Plan to guide vehicle replacement decisions across all departments. The Plan establishes recommended service life cycles based on mileage, age, maintenance cost trends, and operational demands. All vehicles proposed for replacement in this report were identified in the Plan as overdue for retirement, in some cases since 2019 or 2021.
Proactive fleet management reduces overall lifecycle costs and minimizes operational disruptions caused by unexpected mechanical failures.
Vehicle market conditions remain dynamic, with dealership inventory levels changing rapidly. The not-to-exceed authorization structure adopted for the detective vehicle purchase, and the flexibility to substitute a comparable electric truck for the Silverado should it become unavailable, reflect this reality and protect the City's ability to complete timely acquisitions within approved :tunding limits.
ATTACHMENTS: A. 2026 Chevrolet Silverado EV e4WD Crew Cab Standard Range Work Truck, Quote from National Auto Fleet Group
B. Sourcewell Contract for National Fleet Auto Group C. PD Supplemental Budget Request
D. Kia Dealer Quotes
3 272
AttaChment A
Agenda Bill 03/10/26
RFP 091 52'l - Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories
Vendor Details
Company Name: 72 HOUR LLC
Does your company conduct
business under any other name? If National Auto Fleet Group yes, please state:
490 Auto Center Drive
Address:
Contact:
Email:
Phone:
Fax:
HST#:
Watsonville, CA 95076
Jesse Cooper
[email protected]
951-440-0585
831 -840-8497
263297677
Submission Details
Created On:
Submitted On:
Submitted By:
Email:
Transaction #:
Submitter's IP Address:
Tuesday August 24, 2021 16:34:10
Tuesday September 14, 2021 14:10:21
Jesse Cooper
[email protected]
d2e890de-e761 -4f47-9b23-bef3d51 2bd76
76.81.241 .2
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
273
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA Specifications
Table 1 : Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond "N/A" if the question does not apply to you (preferably with an explanation).
Line
Item Question Response "
1 Proposer Legal Name (one legal entity only): (In the event of award, will execute the resulting contract as "Supplier")
72 Hour LLC
2 Identify all subsidiary entities of the Proposer whose equipment, products, or services are included in the Proposal.
WCAF, LLC
WCDJR, LLC
Alan Jay Automotive Inc
3 Identify all applicable assumed names or DBA names of the Proposer or Proposer's subsidiaries in Line 1 or Line 2 above.
NAFG has numerous subsidiaries and DBA's including but not limited to:
National Auto Fleet Group,
Chevrolet of Watsonville,
Watsonville Ford
Watsonville CDJR
Watsonville Fleet Group
Alan Jay Chrysler Jeep Inc
Alan Jay Chevrolet, Cadillac
Alan Jay Buick, GMC
Alan Jay Auto Outlet
Clewiston Motor Company, Inc
Alan Jay Chrysler Dodge Ram Jeep
Alan Jay Lincoln
Alan Jay Ford
Alan Jay Nissan
Alan Jay Toyota
4 Proposer Physical Address: 490 Auto Center Drive
Watsonville, CA 95076
5 Proposer webslte address (or addresses): www.NationalAutoFleetGroup.com 6 Proposer's Authorzed Representative (name, title, address, email address & phone) (The representative must have authority to sign the 'aProposer's Assurance of Compliance" on behalf of the Proposer and, In the event of award, will be expected to execute the resulting contract):
Jesse Cooper
Fleet Manager
1-855-289-6572
490 Auto Center Drive
Watsonville, CA 95076
[email protected]
7 Proposer's primary contact for this proposal (name, title, address, email address & phone):
Jesse Cooper
Fleet Manager
1-855-289-6572
490 Auto Center Drive
Watsonville, CA 95076
Jcooper@nationalautofleeig+oup.com
8 Proposer's other contacts for this proposal, if any (name, title, address, email address & phone):
Clarke Cooper
Fleet Manger
1-855-289-6572
490 Auto Center Drive
Watsonville, CA 95076
[email protected]
Table 2: Company Information and Financial Strength Response'
Vendor Name: 72 HOUR LLC
5 Bid Number: RFP 091521
274
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA ?l
I
i
I:==Hgi'a\'j:.=2="bE'='H==='=='="="=':"'l
National Auto Fleet Group started as a new division of 72 Hour LLC, in the summer of 20'lO in iheieait of Southem CaliTomia. We began our network with a single automobile dealership and have now)rown our network to encompass numerous dealerships located in and outside of Califomia. #e stand by providing opportunities Tor advancement by hiting and promoting from wilhin our:irganization. Many of the Fleet Managers who started with us in 2010 are still with us today Through the years, we have evolved and adapted to the new technology dnven trends that areaevolutionizing the automotive industry today. However, our brand's fundamental core values haveremained unchanged - We ate committed to do tight for the members. If we take care of them, they "hill in return take care of us.
National Auto Fleet Group's operational blueprint and business philosophy has always been the "4RIGHT's" for every member: We deliver the RIGHT vehicle, at the RIGHT time. to the RIGHT place akthe RIGHT price.
The integrity of our business stems on our deep family roots in the automotive industry. We are andalways will be family owned and operated with our future generations already in their infant stagestoday. We are committed to pioneering our industry for decades to come. 10 #hat are your company's expectations in the event oF an award?
If awarded, this would be out 5th Sourcewell Contract and we would execute as such. We willcontinue to serve your members and provide them with excellem customer service while continuing toadvance customer satisfaction. Along with implementing new business growth strategies that willulUmately launch us into new heights once again.
Furthemiore, we will launch our Partner Program detailed in the attached "marketing PlanCompressed" Zip file. This next generation application will give members the power to select upfittersthey would like NAFG to partner with in providing satisfactory quotes and service. We see tremendousvalue in building out these mutually beneficial paitnerships, so we can proude 100% satisfactorytumkey solutions to ihe members. 11 I
Demonstrate your financial strength and stability with meaningful data. This could include such iiems as
financial statements, SEC filings, credit and bond
ratings, letters of credit, and detailed reference letters.
Upload supporting documents (as applicable) in the
document upload section of your response.
To demonstrate NAFG's financial strength and stability, we have uploaded Bank Commitment letiersunder the Financial Strength Section of the online application. We have a direct line of ctedit of $52,000,00.00 that we are currently utilizing with our current and past Soutcewell Contracts. However,this number is not capped as we have the Treedom to extend the cap to accommodate the revolvingneeds of the members.
Referenced below is a shirt register of some of our market success from awarded govemment contracts that encompass over $'l40,000,000.00 worth of products and goods under our cunentSourcewell Contract.
A. City of San Diego, CA $ 72,000,000 contract under our Sourcewell Contract 120716-NAF.
B. City of San Diego, CA $ 55,400,000 contract under our Sourcewell Contract 081716-NAF.
C. Govemment Fleet Article Highlighting our transaction with the City of San Diego, CA procuring overTOO Police vehicles through NAFG Soutcewell Contract 120718-NAF.
D. City of Los Angeles World Airports, CA Contract for $ 24,003,500 under Soutcewell Contract12071 6-NAF for the procurement of 400 vehicles.
E. City of Los Angeles Harbor, CA Contract Extension to $ 4,500,000 contract under SourcewellContract 120716-NAF.
F. City O{ Los Angeles Harbor, CA Contract lor $1,500,000 under our Sourcewell Contract 120716-NAF.
G. City of Los Angeles Harbor, CA Renewal for another $ i500,000 under Sourcewell Contract Class6, 7 and 8 Contract 081716-NAF.
H. City of Costa Mesa, CA Contract $1023,220 under our Sourcewell Contract 120716-NAF.
1. Blanket Contracts with the State of Maryland, MD off our current Class 6. 7 and 8 Chassis Contract08171 6-NAF. 'J Blanket Contracts with the State of Maryland, MD off our Current Sourcewell Contract 120716-NAF.
We have also attached our Commitment Letteras for unparallel support from leading nationallyrecognized upfit suppliers such The Knapheide Manufacturng Company. Along with regional supplierssuch as Brand FX and Phenix Truck Body located in Southem CaliTomia serve as regional supportlocations, whom we often work alongside to fulfill all member needs with past present, and futureorders with NAFG.
Included are also Llpfitter Recommendation letters to illustrate how National Auto Fleet Group hastaken a proactive interest in building mutually beneficial relationship with our upfitters. Mutuality andreciprocity relationships between body companies and our dealer's are two of the key componentsthat help members receive what they need in a smooth and efficient fashion In addition, the adoption of our Class 6, 7, and 8 Contract Trom Anne Arundel County in the state ofMaryland is as an example of how Naiional Auto Fleet Group attracts and retains new clients bydemonsttating to them there's a better and more efficient way of finding turnkey solutions.
Lastly, we have atiached supporting documents that help emphasize and exemplify our growth sinceout first awarded Sourcewell Contract in 2012. We sincerely hope it helps portray our commitment tobuilding lifelong rapport and trust with our partner upfitters and members. 12 What is your US market share for the solutions that you ate proposing?
. Of our respective brands and OEM's we represent, the US market share is estimated to be 60 - 75'/0.
13 What is your Canadian market share for the solutions ihat you are proposing?
It is difficult to estimate the market share for the brands and OEM's we represent. however weestimate that it should be the same 60 -75 % of the US share 14 Has your business ever petitioned for bankruptcy
protection? If so, explain in detail.
No.
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
€1!)
275
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-FIA7A7104FDA 15 How is your organization best described: is it a manuTacturer, a distributor/dealer/reseller, or a service provider? Answer whichever question (eiiher a) or b) lust below) best applies to your organization.
a) If your company is best described as a
distributor/dealer/resellet (or similar entity), provide your witten authorization to act as a
distnbutor/dealer/resellet for the manufacturer of the products proposed in this RFP. If applicable, is your dealer network independent or company owned?
b) If ycur compahy is best described as a
manufacturer or service provider, describe your
relationship with your sales and service force and with your dealer network in delivering the products and services proposed in this RFP. Are these individuals your employees, or the employees of a third party?
National Auto Fleet Group is a dealer network best catego+ized as "A" - Distributer/Dealer/Reseller and Dealer Pariner for (15) OEM ManuTackurets including Ford Motor Company, Chevrolet, RAM, GMC, Buick, Chrysler, Dodge, Jeep, Toyota, Nissan, KIA, BMW, Honda, Cadillac and Volkswagen, All orders are placed with the franchised dealer and ultimately titled directly to the member. All appropriate certification certificates and authorized DMV/Factory licenses may be found in the "Related Certification" section uploaded to this RFP. It should be noted we do no! sell used equipment to members.
16 If applicable, provide a detailed explanation outlining the licenses and certifications that are both required to be held, and actually held, by your organization
(including third parties and subcontractors that you use) in pursuit of the business contemplated by this RFP.
Required licenses include a Dealeras License, a Franchise issued by the Manufacture, a Department of Motor Vehicles License, as well as a Reseller's permit license. All which NAFG and Dealer Partner's hold. Please review our attachment documents in section 'aRelated CertiTication" for licenses that we either solely own or are joinUy owned by our partner dealers that pertain to this RFP. A list of all our licenses are below, some of which may not peitain to class 1-3 but to class 4-8.
CA Certificate of Good Standing 20082481CH90
State oF Florida License Certificates:
VF/1000974/4
VF/1000950/1
VF/1046516/1
VF/1024619/2
VF/1024819/1
VF/1018615/1 '
VF/1021891/i
VF/1000'J74/3
VF/110591 6/1
VF/1020705/i
VF/1000969/1
CA State Seller's Permit ICII-'135239
CA State Selleras Permit 245364864-00001
Department of Motor Vehiale, Vehicle Dealer/ License Number 97772 Department of Motor Vehicle, Vehicle Dealer License Number 97771 Department of Motor Vehicle, Vehicle Dealer License Number 43609 Bureau of Automotive repair Registration # ARDOO296319 l23j20 CA State Selleras Permit 2327E11952-00001
City of Watsonville Business License Number 1792
City of Watsonville Business License Number 4358
Fictitious Business Names from Santa Cruz County For National Auto Fleet Group FBN: 2017-0000138 Califomia General Resale Certificate
Dun & Bradstreet Number: 023680653
Govemment of The District of Columbia Certfficate
Govemment of the District of Columbia Tax Registration # 7815888160711 City of Los Angeles Tax Registration
Government of The District of Columbia CLEAN HANDS CERTIFICATION San Diego Freightliner Selleras Permit
Commonwealth of Virginia State Corporation Commission Certificate State 6f Maryland Good Standing Certificate
Kansas Department of Revenue for Kansas City Peterbilt New Jersey Department of Treasury Registration Cittifica)e New Jersey Business Registration
Notice of Compliance of the Canton City Codified Ordinance Employee Information Repori for the State of New Jersey State of Maryland New Sales and Use tax License
CA State Seller's Permit 98-037902 00006
South Carolina Department of Motor Vehicles License Number 38133 State of South Carolina Retail License
Commonwealth of Kentucky Vehicle Dealer License 1583 20 100 State of West Virginia Dealer License
Commonwealth of Kentucky Vehicle Dealer License 1581 20 036 State of Tennessee Vehicle Dealer License
17 Provide all "Suspension or Debarment" information that has applied to your organization during the past ten years
Not Applicable, none.
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
"7
276
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA Table 3: Industry Recognition & Marketplace Success Line
Item Question Response '
I
18 Describe any relevant industry awards or recognition that your company has teceived in the past five yeats
National Auto Fleet Group's received its most prestigious award for Top Placement within Ford MotorCompany as the leading dealership in Government Sales. In addition, out Chevtolet brand was highlyranked and honored 4/5 consecutive years by General Motors. 19 What percentage of your sales are to the
governmental sector in the pask three years
Within Out fleet diViSiOn, 90% Of 011r contracts Within the pant three Years haVe been With governmentaccounts. 20 What percentage of your sales are to the education
sector in the past three years
Within the past 3 years 90a/o of our sales have been to governmerA accounts. 20% of which arewithin the educafion sector. 21 List any state, provincial, or cooperative purchasing contracts that you hold. What is the annual sales
volume for each of these contracts over the past three
years?
We hold the State of Califomia contract with volumes from 200 to 500 units a year over the pastthree years. In addiiion, our Sourcewell Contractas 0912"l9, 081716 and 120716 that we havemaintained over the past three years has sold combined north of 400 million of Combined QuarterlySales. 22 List any GSA coniracts or Standing Offers and Supply IE='EE'5;=""'-"-"=-'a="'-
National Auto Fleet Group's focus lies on the Sourcewell Contract. NAFG holds no other GSAcontract, Standing Offets, or Supply Artangements other than the State of Calitomia contract Ourannual sales volume is estimated to be north of $200 million.
Table 4: References/Testimonials
Line Item 23. Supply reference information from three customers who are eligible to be Sourcewell participating entities.
Ent!ty Name " - . -.. - ' . Contact Name " _' " Phone Number" ' Port of Los Angeles, CA Mt. Dave Comer 310-72-3794
Couniy of Venture, CA Mr. Jorge Bnilla 805-672-2044
City of Austin, TX Mr. Matt Sager 512-978-2637
County of San Joaquin. CA Mr. David Myers 209-468-9745
City of Palo Alto. CA Ms. Danitra Bahlman 650-498-5!)20 Table 5: Top Five Government or Education Customers Line Item 24. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province theentity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years.
Entity Name Entity Type ' State/Province ' St.ope of Work' Size of Transactions ' Dollar Volume Past Three Years "
City oT Austin Govemment Texas - TX Purchaser '10-15 Vehicles at once, Vans and SUVs
Over 1 M
Los Angeles
Department of
Waker and Power
Govemment Califomia - CA Purchaser Over '120 Vehicles, Vans and SUVs
Over 3M
Port of Los
qngeles
Govemment California - CA Purchaser Over 80 Trucks, Vans and SuVs Over 2M Anne Arundel
County
Govemment Maiyland - MD Purchaser Over 40 Trucks, Vans and SUVs Over I M City of San Diego G6vemment Califomia - CA Purchaser Over 500 Trucks, Vans, SUV Over 15M Table 6: Ability to Sell and Deliver Service
Describe your company's capability to meet the needs of Sourcewell participating entities across the LIS and Canada, as applicable. Your response should addressin detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-time equivalents) involved in each sector,whether these workers are your direct employees (or employees of a third party), and any overlap between the sales and service functions.
Line
Item Question Response '
25 Sales force.
I
I
Our sales force consists of direck and an indirect sales force. Out direct sales force consists of directemployees and partner dealers, which exceeds an employee count of 300 personnel both full time andpart time. Many of our sales fotce ate spread across the US and we leverage out relationships without larger class dealetships to service the members lower class vehicle needs as well. A cross salesforce. These individuals help suppod our dealerships and NAFG Fleet Division directly. On the otherhand, our indirect sales force made up of upfitters and partner suppliers consists of over TOO personnelwith our par!ner network and sales force growing annually.
With both direct and indirect sales force staff working together, NAFG has been able to successfully IE;E:E=E:"='='-'-="'=:"'="=o:l="'=="":=-:="-""""b"S"W":="A="-er"' Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
277
26 Dealer network or other distribution methods. Our franchise network in Canada and the u.s. is fortunately second to none. Our '15 proposed OEMS previously mentioned, all of which have established a presence nationwide with fackory stores strategically placed where all members can receive service and complete warranty repairs with their respective products.
Simple put the North American and Canadian automobile supply chain network is one of the best in the world. Of the 15 brands we represent, the OEMs have put in place a dealer network across all 50 states that will allow us to best serve all members.
27 Service force. The 15 manuTactures we represent have thousands of service locations that would be easily accessible to all your members. Service centers and warranty repalr facilities for all 15 0EMs are ample and ready to help service our members and their needs. However, Alaska and Hawaii may be exceptions as they may have fariher distances between franchises where members can utilize the repair services. 28 Describe the ordering process. If orders will be
handled by distributors, dealers or others, explain the respective roles of the Proposer and others.
The member may order their vehicles by navigaiing to our website, www.NationalAutoFleetGroup.com and going through the step-by-step process to generate an online quote or by calling one of our representatives ak 855-289-6572 or by sending NAFG an email at Fleet@NationalAutoFlee'tGroup.com.
Orders are then processed directly to the manufacturer who will work to supply the vehicle to the ship- to location for upTittinig or end user desired delivery location. 29 Describe in detail the process and procedure of
your customer service program, if applicable.
Include your response-time capabilities and
commitments, as well as any incentives that help
your providers meei your stated service goals or
promises.
To best demonstrate out Customer Service program, kindly reference the ZIP file "Member Walk Through" that is attached in the Additional Documents folder. Please begin with and review in order that is explained below:
How Members Can Get Quotes Online: A member can obtain most quotes by visiting our website www.NationalAutoFleetGroup.com where a simple one step form is needed for registration. This is to protect the price information from nonmembers. Once a member registers they will receive an automated welcome email with a demo video on how to use our site. Members will gain access to there very own dashboard which will house all there quotes in one safe secure login. Member's can select which brand they are looking for and model year. Our site shows all the categories the brand offers such as: Cars, Vans, SUV's Trucks and Chassis Cabs. Members will then be able to drill down for the right selection by picking from the filter menu of what cab there looking for (Regular, Extended or Crew) to 2 wheel or 4 wheel drive down to the bed length there looking for. All Tactory options are then presented for the member to select from, this will show all current fackory orderable options, taking the guess work out for the member. Once a member selects a deslre build, they will see there Sourcewell Pnce report showing the MSRP, there contract price, the saving in real dollars and as a percentage. In the PDF example you can see a saving of $ 9,175.96 of 22.345% to the member showing a significant savings. Members then can chose to add exttaas to there order like extra keysa service manuals, sales tax and even request an upfit to be added to there quote. Lastly they will be given a complete turn key quote package to print which will include there customized Quote ID, Description and Specifications of what they buili.
How Members and Upfitters can Pattner with NAFG: Our dedicated website www.NAFGPartner.com was built to accommodate the member who would like a certain upfitter to upfit there vehicles. It was also built for upfitters ko have a place to go where they can find information on how to partner with NAFG to better serve there local members.
Example ol A Member with Upfit Quote: This is an example of how we use our Cab Chassis and combine them with an upfit to provide a turnkey solution for the member in a simple to follow format.
ETA System for Members Walk Through: This is where members can easily come to our website, the same website they built there chassis on and track there order like they would a UPS package. We have a very simple display on our homepage Track your order" where members can enter one of the following: Purchase Order Number, Quote ID, Upfit Quote ID or vin to easily see there in the process there particular order is in.
Courtesy Confirmation Explained: After NAFG receives an order from a Member, we always like to send them a Courtesy Confirmation. This is were the member will double check some pariiculars on there order like, Color, Quantity, Upfit and Specification's are all conect before order placement. We also like to ask for title information at this point so we can help process the paperwork at delivery promptly.
Factory Order Cut Off Notices. Here is were we like to highlight were members can access any upcoming fackory order cut off dates. We walk them through the process step by step to ensure everyone knows the upcoming order cut off date, we even print this information (if known at the time) right on the cover page of there quotes.
Validation Walk Through Example: To demonstrate a price validation, we show what a member would see when they build a truck on our site. At check out the member would see the Total Configured MSRP of $ 35,730.00, A Sourcewell Price of $ 27,331.68, Total Saving of $ 8,398.32 or 23.505% for a 2020 F-250 followed by the pricing page which shows the Minimum Discount of ak least 18.50Vo. As you see we provided an additional 5% discount on top of the 18.50% contract discount. This would be the case in most instances.
30 Describe your ability and willingness to provide your products and services to Sourcewell parkicipating
emities in the United States.
Our willingness and ability to service members naUonwide is unparalleled. We have dedicated staff 5 days a week, from 7am to 7pm standing by ready to assist any member help find the best solution for there needs even if helping assist them to the best Sourcewell Contract that could be a solution. We have a dedicated live chat feature on our online quote generating website in case any member has any trouble at all in building thete quotes. NAFG has established a chain of suppliers who ate ak the ready to serve if called upon by any member. We are here to help. 31 Describe your ability and willingness to provide your products and services to Sourcewell participating
entities in Canada.
We are willing and eager to soon extend our business model and network into Canada. We believe parfnering with local Canadian based dealer groups is key to success in the Canadian market. NAFG's competitive pricing as well as a simple US Dollar to Canadian conversation will help NAFG expand into the Canadian market for pa+ticipating Sourcewell members. 32 Identi$ any geographic areas of the united States
or Canada that you will NOT be fully serving tlvough
the proposed contract.
National Auto Fleet Group will handle servicing 100% of all geographic areas located in the Llnited States. Although it is unclear what unseen obstacles we may face in Canada, NAFG is committed to building the same model to service Canada and providing the same level of customer satisfaction, seivice, and care as in the Llnited States.
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA 278
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA 33 I
I
Identify any Sourcewell participating entity seckots
(i.e, govemment, education, not4ot-profit) that you
will NOT be fully serving through the proposed
contract. Explain in detail. For example, does your
.company have only a regional presence, OT do other
cooperative purchasing contracts limit your ability to promote another contract?
NAFG will continue to service all Soutcewell Members through our 24 hour a day. 7 days a weekonline portal with the exclusion of Non-Profits. Unfoitunately, Non-Profits are often not eligible Tor thesame discount's govemment entities are qualified for. However, Non-Pro(its are subject to a differentpricing program and will be evaluated on a case to case basis. 34 i:';:,:.a:,'i:';=.:.:::;:q::yr':::::i,';:,gentities in Hawaii and Alaska and in US Tenltories.
The only possible logistical constraints we may face is the shipping constraints for shipments arriving inAlaska, Hawaii and US Tenitories. For example, we often provide members in Alaska or Hawaii withvehicles that oiien have upfits. To circumvent this potential issue, members allow us to add these extrashipping and port costs to their quotes.
Table 7: Marketing Plan
:_,:,; I-,-==-_: - I-=- I35
1,
Describe your marketing strategy for promoting
this contract opportunity. Upload
representative samples of your marketing
materials (if applicable) in the document
upload section oF your response.
I
I
I
National Auto Fleet Group encompasses a variety of marketing strategies to promote our products andservices to sireamline the vehicle purt.hasing process for govemment entities. Below are a few strategiesused to serve as the gateway between out business and public agencies.
Webslle and Inbound Marketing: The creation of a proTessional customer-focused website is one oF our mainfeatures to market our products and services. The NAFG website encourages our members to interact andbrowse tmough products offered along with pricing and information about National Auto Fleet Group. Inboundmarketing is created when potential members are directed to the company website With this method, weare able to not only connect with members but to put the purchasing ability into the hands or each member.Out inbound marketing strategy attracts members by creating valuable content and experiences tailored to (heneeds of each individual. Examples include email campaign flyers on our products, informative and how-tovideos, social media and engaging members with top-notched customer service to build brand awareness.
Email Marketing: One of the main strategies used to engage current and potential members is EmailMarketing. Our emails include different types of flyers that consist of information of the Sourcewell contract,promoting manufacturer brands, holiday themed flyers, discounts offered to fkst time buyers, imporiant cutoffdate reminders and upcoming produds and events.
The use of marketing campaigns plays a major role in enhancing the growth of our client database. Emailsare a big part of our daily lives due to govemment agency employees utilizing emails as their main source ofcommunication. We use campaigner.com as the emailing plaffoim to teach our target members. Videos anddescriptive images are used on all flyers and are compatible with a desktop ot mobile device. Messagesare short and to the point with links leading to the Sourcewell and NAFG homepage. The Campaigner emailsystem allows the ability to track email activity based on open rate, unsubscribes and Imk clicks which isbeneficial to understanding email effectiveness.
Once potential members are directed to our website, theiy are welcomed with a wide range oT options )oexplore an array of our products and services. They are able to register to become a member, view pricing,explore available in-stock vehicles, view how-to-videos, build a vehicle online to request an immediate quoteor use our live chat assistant or callfemail for live support.
Face to Face Marketing Strategies: This strategy has proven to be successful in generatlng leads andcreating lasting relationships by developing genuine connections with prospective members. National AutoFleet Group atiends several trades shows per year to engage members and put a face to the company. Thisin person meeting aids to build the brand by nutturing relationships beitween members and other vendorsassociated through the process. Trade shows attended include GFX, IAPPO, NIGP. ACT, CAPPO, andCASBO throughout the Llnited States.
INAFG has many opporiunities to make in person presentations to propose products. services offered and toanswer any questions potential members may have These PowerPoint Ptesentations include topics onNAFG/Sourcewell process, how to facilltate the vehicle purchasing without bidding, informational videos, andbrands and services we provide. These meetings have been held at local clties. counties, school districts,districts and porks. ' Marketing is a vital strategy used in building and maintaining long-term relationships practiced byNational Auto Fleet Group on a daily basis. sh1ves to create a positive and supportive connection with members by ptoviding peisonalized and' customer senice practices. The sales team has worked tlrelessly to focus on providing customer support to create a powerful rapport with exisiing and new members. By going abovebeyond, they have enhanced existing relationships and executed customer loyalty with repeat businesses.
StriVe tO deviate from the "Cat Salespe+son" mentalitY WhiCh iS 100% GALES dtiW.n tO a mate productcustomer service approach by instilling a sense of confidence in our clients. The goal is to regularly' clients and address any needs and concems even afier the purchase has occurred. The strive toon solution selling vs. product selling develops into a mutually beneficial agreement for members andbusiness. are a few examples on successful relationship marketing from our Fleet Depariment:
had a member call in to request Tinancingllease opuons for a tnick needed through our National AutoFleet Group/Sourcewell vehicle contract. I contacted another Sourcewell vendor. Matt Geiselhart from NCLGov Capital and he was happy to assist with a financing quote. The member also requested to trade in avehicle in thelr fleet and was directed to Govdeals for assistance in removing the outdated unitan auction. The member was able to utilize three Sourcewell contracts to complete his transaction' simplified the entire pmcess. The member was very satisTied with the amount of care and easehis experience and became a repeat customer. By utilizing a cross-selling strategy, National AutoFleet Group became his one stop shop to fulfill all fleet vehicle purchasing needs. had a member call in desperaie to obtain a new truck because an employee had gotten into a sen'ous' and had the truck totaled. Due to covid restrictions, most manufacturers are currently expetiencing" shortages which relays to production delays at the factory. We were able to direct buyer to our in-inventory on the NAFG website and member was ecstatic to locate truck to meet iheir needs. Insteadhaving to wait 30 weeks to receive the ntiw vehicle, member was able to obtain the new tnick within 3 Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
)O
279
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA "l once had a member contact us two years after purchasing a vehicle from us. They had a malfunction the liftgate on the box truck which caused a logistical nightmare. I was able to contact one of our body that uplitted the lift gate installaiion and a service technician was able to go ons+fe to resolve the liflgate issue at no additional cost. The member was very impressed with the quality of our customer service even affet purchase. "
'J had a member request a % ton truck pScing but was unsure about their budget ai the time. I look the time to go through each option wlth Ihe client to provide a Sourcewell pricing quote through multiple manufacturers from Ram, Chevrolef and Ford. This empowered the member to have multiple pricing options review to align with their budget as well as eliminating the need to shop anywhere else. " 'We work with many body companies to assist customers with the body upfitting process. One of Ou-l members called in a request to expedite a particular vehicle that was held up at one of their local body upfitters. I contacted the body company representative and put in a request to expedite the upfitting per request of the member. The body company was able to comply with the request and delivery was made soaner than expected "
Word-of-Mouth Marketing: The positive quality of seivice has led to more sales based on previous customers' impressions on their experience. NAFG's goal is to provide exemplary customer service the entire purchasing process to encourage repeat business and advocate services to olher members. NAFG has been fortunate to experience multiple instances of leads generated based solely on word-of-mouth marketing though our existing customers.
Cross-promotion: National Auto Fleet Group is cunently collaborating with another Sourcewell Vendor, NCL Govemment Capital to promote each otheras products and services. NCL Govemment Capital specializes in providing competitive equipment financing programs for municipalities and public education entities across the United States. As a team, NCL and NAFG produced a variety of marketing materials such as videos, flyers and info graphs to promote purchasing and leasing opportunities.
Hoglund Bus Company is another cross-promotion vendor NAFG had the opportunity to create a partnership Flyers were created to advertise Chassis from NAFG along with a variety of bus bodies from Hoglund Bus Company.
With cross-promotion, companies exchange knowledge and provide endorsements on websites, social media, and email campaigns. This strategy creates an influx of new leads, brand awareness, increased sales and recunence of customers. National Auto Fleet Group will continue to create new partnerships and facilitate more cross-promotion opportunities in the near future to provide turnkey solutions for a variety of vehicle purchasing needs.
Coming in 2022, National Auto Fleet Group will be launching a NAFG Parkner Website to further increase business growth. The website www.nafgpartner.com is expected to launch next year in 2022. The site encourages body upfittlng companies throughout the Llnited States to partner up with NAFG to become a preferred member. The benefits of becoming a preferred member include endorssments on website and social media avenues along with word-of-mouth referral for clients with upfitting needs. Our dedicated public relations representative will conduct phone and in person meetings to discuss the advantages of partnering up NAFG, therefore generating more cross-promotion opportunities.
Members from govemment agencies are encouraged to go on the site to search for local body upfitiing companies they are interested in working with. As a prerequisite in becoming a prt'lerred vendor, they are required to advertise NAFG and the Soutcewell contract on their business website and refer their clients to purchase their cab/chassis needs through NAFG. This establishes a partnership that will generate increased sales all around. We are still currently building the website and interacting with body companies across the lJnited States that would be interested in partneting up with NAFG.
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
280
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA 16 I
i
)escribe your use of technology and digital
lata (e.g., social media, metadata usage) to
inhance marketing effectiveness.
I
3ocial media plays a crucial element in the way people communicate and connect with each other._inkedln is the go-to platioim used by NAFG as it offers a variety oT ways to expand our network by locatingand connecting with relevant professionals in the industry. National Auto Fleet Group has utilized Linkedln togngage current and potential members ihrough personalized messages and posts. Personalized messagesnclude thanking them for registering on site as well as directing them ko on our link to the website, Linkedln,{ouTube, Facebook and Instagtam company pages. The goal is to unite with people already on outiatabase as well as people that would benefit from our products and services. Cunent flyers or messagesabout out company are also posted on the Linkedln site to generate and attract more business. Time is 3180 spent on reading posts from connections and observe any needs that National Auto Fleet Group mayassist with.
National Auto Fleet Group has begun utilizing video marketing strategies to further promote and marketproducts by engaging on social media channels and email flyers. Programs such as Vimeo, Video Scribe, :Aa:;,r4 ::;:;, ::; :::;,%u;::,s,l:t::;e,P:t;:op,;d,:l;,: V::oS(E::;; :u;;,7 ;;7AHy: .our marketing depariment along with outside video production companies:
Explainer Video: The first video created was a 90 second explainer video about National Auto Fleet Groupthat used animated characters to visualize our products and services along with infomiation on the Sourcewellawarded contract. The video has been incorporated into all our weekly email flyers and social mediaplatforms as an informative video on our products and how to purchase vehicles off Sourcewell GovemmentContract.
How To Videos: National Auto Fleet Group has also created step-by-step How-To videos on the process topurchase both Light Duty and Heavy-Duty vehicles off the contract.
In Stock Vehides: This video showcases our in-stock vehicles available and the process of requesting aquote.
ETA Tracking System: This video was created to not only introduce but to encourage clients to self-tracktheir vehide status.
Holiday Themed Videos: These amusing videos were created to celebrate the holidays and add humor andlightness to our company and products sold.
Cross Promotion Video: This video markets our relationship with NCL Government Capital and Sourcewell toendorse EV vehicles.
Videos for social media: Mint videos were created to advertise new vehicles available, pricing and cutoffdate reminders, NAFG has recently introduced a newly built live chat feature on our websife for customer convenience as wellas improving customer service. Visitors have access to chat with a live sales representative 24 hours a day,7 days a week. With this feature potential customers are provided with another avenue for assistance inaddition to emailing and phone calls. The benefits of a live chat option include quicker response time toassist buyers in reaching a purchasing decision and answer their questions.
Improving customer service will also lead to increased sales, customer loyalty and engagement Many s(udieshave shown a strong correlaiion between live chat and increase in conversion rates. Potential clientsappreciate having their questions answered in real-time when trying to build a vehicle quote online andallowing the user to multi-task different projects.
In your view, what is Sou+cewell's tole in
ptomoting contracts arising out of this RFP?
cHoonwi,awciillllnytoOuyiontuergsraatleesapSroocuerscse,well-awarded Sourcewell's mission states: "Our commitment to service and exceeding client expectations." This statementintegrates with our relationship marketing strategy with our commitment to go above and beyond for all ourmembers. Sourcewell Is a trusted brand that govemment entities can rely on to access a wide variety ofproducts and services for their everyday needs. With over 40 years of pattnerships and relationship building,they are the glue that connects govemment, education, and nonprofit agencies to companies of all sizes tooffer turnkey solutions to their needs.
Soutcewell is also a reliable resource for vendors by not only connecting with potential prospects but byproviding valuable marketing materials readily available for download on their website. Resources and toolsprovided include flyers, vendor training videos along with compliance information.
The Sourcewell brand integrates a thorough documentation review of all vendors prlor to awarding theircooperative contracts to ensure products and services are from reputable vendors The brand provides asense of legitimacy of our company name and members recognize that products and services are fromreliable sources that will meet their needs.
Sourcewell's aim is to simplify the purchasing and procurement process of govemment entities by eliminatingjthe costly bidding procedure. The process of researching the right vendor is not only stressful and time-consuming but can be expensive as well. Sourcewell has completed the bidding lor govemment entitiessimplifies the overall putchasing process by providing access to competfflively bid contracts procured bya govemment agency.
Sourcewell has provided NAFG with overwhelming opportunities to work with govemment agencies across theUnited States. The Soutcewell name represents a high standard of integrity and ethics which is a dynamicNational Auto Fleet Group is proud to be part of. Sourcewell members have access to a conitact that ismore flexible than the standard bidding process. Sourcewell is an organization that aids government entitiesto stay competitive without the {rus(ta}ions and issues involved with the traditional bidding process. Thiscontract can be customlzed to meet the unique needs ol each client. The sales team has incorporated notonly this standard of integrity in their sales practice ensuring clients' purchasing needs will always be met.The cost savings and stress-free nature of the cooperative contracts favors that of the traditional biddingprocess. It enables vendors to work with qualifying govemment entities in a more efficient manner We vowto maintain these levels or standards across the board throughout all departments within the company Vendor Name: 72 HOUR LLC
)'2
Bid Number: RFP OG)1521
281
DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA 138
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I
/Ve your products or services available
tmough an e-procurement ordering process? If
so, describe your e-procurement system and
how govemmental and educational customers
have used it.
Our website provides a hands-on empowering approach to ordering vehides online. Clients can search through many vehicles makes and models with the ability to customize a vehicle tailored to their specific needs of their agency. A personalized quote with pricing can be available in as little as 5 minutes depending on the complexity of the vehicle. If upfitting is needed, the buyer can list the details of the up-fit while building their vehicle on our website to receive a complete quote or a sales representative can be reached through phone, email or our new live chat feature built on our website.
We have recently created and uploaded a "How-To Videos'a section on the homepage of our website which highlights a step-by-step process on how to build an online quote. This informative video demonstrates how to naviga(e the website in how to generate a vehicle quote with or without upfltting options. Ii begins by explaining htxtt to regisfer on our websRe as a member and then details on how to select vehicle model and type and the factory options needed.
Once a customized quote is built, clients have the option to finalize the sales transaction by submitilng a purchase order to our sales team via email. This gives complete autonomy to the client to purchase vehicles Without tt'e need tO speak tO a SaleS repi If aSSiStanCe iS neededi they can COntaCt GALES thrOiigh email, live chat or phone.
If assistance is required to build a quote, our sales rep is also available to walk a cliem through the e- procurement process step by step. This ensures someone is available to answer any questions if needed and empowering the client to make any future purchases on their own. Clients may also call or email the needs of the company and receive a customized vehicle quote.
Table 8: Value-Added Attributes
Line Item Question - , , - Response" -
I
39 40
[)escribe any product, equipment,
maintenance, or operator training
programs that you offer to Sourcewell
participating entities. Include details, such
as whether training is standard or
optional, who provides training, and any
costs that apply.
National AulO Fleet G(OUp extends any and all product, equipment, maintenance and opeialing programs provided by the Manufacturer directly to Sourcewell participating entities during the quoting process. The manufacturer will provide quotes to the member based on the vehk.les class and size, and geographic location.
NAFG will always pass these quotes onto members and treat them like an upfit to the vehicle.
Describe any technological advances that
your proposed products or services offer.
Technological accomplishmenti by Manufactures like Ford Motor'Company and General Motors serve members by keeping many models available for mpmbets to choose from. Additionally, NAFG all6ws members the ability to choose to Thlectrify their vehicle 'by opting into the Motive Power Systems _we can still help' supply this kind of an upfit. For more information, we have attached the product and prlcing information within the aUpfits Availableia and "All 15 Manufactures" ZIP files under the supporting documents portion of the application. 41 Desctibe any "greena initiaUves that relate
to your company or to your products or
services, and include a list of the
certifying agency for each.
. National Auto Fleet Group helped create the Climate Mayor Purchasing Collaborative by partnering with over 400 Mayors nationwide. This initiative was created for the benefit of members who wanted to create and sustain an all-electric fleet. We offer 100% purely electric vehicles your members to choose from. Some popular models include the Chevrolet BoR, Ford Fusion, Ford Mustang Mach-E, as well as Fordas all electric F-150. We are confident that as moye OEM's continue to manufacture new electric vehicles, we will provide them for members to select from. More information about this initiative can be found ak www.Drlveevfleet.org . 42 Identify any third-parfy issued st.o-labels,
ratings or certifications that your company
has received for the equipment or
products included in your Proposal related
to energy efflciehcy or conservation, life-
cycle design (cradle-to-cradle),,or other
green/sustainability factors.
NAFG has the California Air Resource Board (CARB) Certiiicate'as well as'the Ford Qualified Vehicle Modifier Ceriificate on file with some of our panner suppliers and upfitters hold (hese certifications and these certifications help illustrate how each vehicle conseives energy and remains energy efficient. 43 Describe any Women or Minority
Business Entity (WMBE), Small Business
Entity (SBE), or veteran owned business
ceriffications that your company or hub
partners have obtained. Upload
documsntation of certification (as
applicable) in the document upload
section of your response.
NAFG holds a current parinership wlth many suppliers some of which are veteran owed such as Pacific Truck Body located in CA. Our Ford, Chevrolet and Ram,Jeep,Dodge,Chrysler stores are jointly owned and operated by Minorities.
44 What unique attributes does your
company, your products, or your services
offer to Sourcewell participating entities?
What makes your proposed solutions
'unique in your industry as it applies to
Sourcewell participating entities?
. National AutO Flee't Group WaS net Onl7 built On dtidicatiOn and hard WOrk, but alSO through quantifiable mgtrlcs that directly measure the results of our efforts to ensure real goals are being measured and met.
Through measurlng results, NAFG takes responsibility in ensuring we deliver only the best customer care to your members. NAFG offers members 24 hour website access to customeir support to peisonably walk members ihrough any questions they may have. No matter whai the issue may be, we always think outside the box to help members find a solution.
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
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DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA Table 9A: Warranty
Describe in detail 7our manufacturer warranty programi including COnditiOns and requirements tO qualify, claims procedure, and overall structure. Y Oumay upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition toresponding to the questions below.
Line Item Question Re:ponse '
45 Do your wananties cover all products, parts, and labor? Each of the 15 manufactures we represent cover their own ptoducts. paris, and labor. Allwananiy information may be found in our attachments under the ZIP File "All 15Manufactutes". 46 Do your wananties impose usage restrictions or other limitations that adversely affect coverage?
Prior to purchase, members should be aware of each manufacturer's restrictions. Such asimproper use or the vehicle may result in disqualification of coverage under the OEMaswarranty. An example of this may be an F-350 being used for a police related pursuit, whichmay void ceriain warranties. Although, we always welcome and encourage members tocontact us for their particular warranty coverage. 47 Do yout warranties cover the expense of technicians' travel time and mileage to perform warranky repaks? In some cases, manufacturers will tow a member's vehicle to the nearest wayran% repairfacility in case of a breakdown and cover expenses, but pnor approval is required.48 Are there any geographic regions of the united States or Canada (as applicable) for which you cannot provide a
cer}ified technician to perform warranty repairs? How will Sourcewell participating entities in these regions be provided service for warranty repair?
This may vary from manufacturer to manufacturer. Thus, we encourage members to call inprlor to purchase and inquire about their specific region and how theiir warranty repairs wi11be covered with their manufacturer. 49 Will you cover warranty service for items made by other manufacturers that are part of your proposal, or are these warranties issues typically passed on to the original
equipment manufacturer?
All warranties are typically passed on to the onginal equipment manufacturer and any upfitwarranty will be passed on to the upfitter to perform. . 50 What are your proposed exchange and retum programs and policies? If a member changes their mind, NAFG will quickly make every effort to change or cancelthe order with the faciory. However, once the manufacturer begins producing the vehicle, thereare no changes, exchange3 or refunds available. The order is then deemed non-cancellable.This includes any upfft equipment an upfitier has ordered for the unit. 51 Describe any service contract options for the items included in your proposal.
NAFG offers any and all manufacturer service contrai.ts for all members. There ate severalparameters in which a service contract may be customizable. These customized servicecontracts will be treated as add faciory options and following the same discount scheduleprovided in the pricing fllei.
Table 9B: Performance Standards or Guarantees
Describe in detail your peformance standards or guarantees, including conditions and requirements to qualify, claims procedure, and overall structure. You mayupload representative samples of your performance materials (if applicable) in the document upload section of your response in addition to responding to thequestions below.
Line
Item Question Response '
52 Describe any performance standards or guarantees
that apply to your seivices
The only guarantee we can ever provide is thei guarantee that we will treat and help every memberthat contacts with respect, integrity and professionalism. 53 Describe any service standards or guarantees that
apply to your services (policies, metrics, KPIs, etc.)
NAFG and skafi uphold high standards with how we provide service to ihe members, not only holdingeach other accountable but by embraThng member feedback of how we can improve. Then we actupon it and implement improvements.
Table 10: Payment Terms and Financing Options
Line
Item Question Response'
I
54 Descnbe your payment terms and ai.cepted payment
methods?
Standard payment terms are Net 20, with a 10 - day grace perlod. 55 Describe any leasing or financing options available for use by educational or governmental entities. . In order to provide leasing or financing options, NAFG has parfnered with National Cooperauve Leasin0 tooffer leasing temis for Sourcewell members for all NAFG quotes under the Sourcewell contract. For furkhetreview, we have attached a PDF called oNCL Sample Lease" in the 'Member Walk Througha Zip file,56 Describe any standard transaction documents that you propose to use in connection with an awarded contract
(order forms, terms and conditions, senice level
agreements, etc.) Upload a sample of each (as
applicable) in the document upload section oT your
response.
National Auto Fleet Group's transaction process (Purchase Order) is closely tracked, well documented, andneatly otganlzed to monitor each transaction perTormed through our Souicewell Contract. This way, NAFG mayproduce swift and accurate quarttmy reporting. 57 Do you accept the P-card procurement and payment
process? If so, is there any additional cost to
Sourcewell pariicipating entitles for using this process? Yes, NAFG accepts up to $2,500 per vehide. However, any dollar amount higher than $2,500 will require a P-card/ Credit Card transactional fee that would be passed onto the member Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
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Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as described in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form.
Line
Item Question Response '
58 Describe your pricing model (e.g., line-item discounts or product-category discounts). Provide detailed pricing 6ata (including sta-ndard or list pricing and ihe Sourcewell discounted price) on all of the items that you want Soutcewell to consider as part of your RFP response. If applicable, provide a SKU for each item in your proposal. Upload your pricing materials (if applicable) in the document upload section of your response.
National Auto Fleet Group is offering Line-Item Discounts Off Manufaciure Sugges!ed ROta:l o r:Ce fO' 15 manufaclLlters !Haf 18 de!a:led In +Fle P L:Ce F :le NAFG will also offer any Upfits to be added to any and all vehides' that members wish to add. [)etails are located on the Price Summary Page in the Price File. 59 Quantify the prlcing discount represented by the pricing proposal in this response. For example, if the pricing in your response represents a percentage discount from MSRP or list, state the percentage or percentage range.
NAFG has an provided offerings from 15 Brands/OEMS and there respective percentage off vary and ate detailed in the "Price File" zip Each Manufacture Range is detailed in the tabs below, here is an OVelVieW
Chevrolet from -.077 to 24.45 %
Ford Motor Company from -5.19 to 23.31 %
GMC from 6.14 to 22.45 %
Ram from 4.99 to 14.23 %
Dodge from 3.0!) to 9.96 %
Jeep From 138 to 4.17 %
Chrysler from L65 to 4.55 %
Toyota from .03 to 8.98 %
Honda from 1.34 to 4.9 %
Nissan from -.085 to 14.61 %
Buick from 2.36 to6.08
Kia from .69 'to 8.39 %
BMW from '3.8 to 4.77 %
Cadillac from 4.22 to 6.77 % .
Volkswagen from 2.17 to 2.48 %
60 Descrlbe any quantity or volume discounts or rebate programs that you offer.
If clients are considering an order of 150 or more units, we encourage members to contact us for any additional discounted quotes.
61 Propose a method of facilitating osourced" products or related services, which may be referred to as aopen market" items or 'nonstandard options'a. For example, you may supply such items "at cost" or 'ak cost plus a percentage," or you may supply a quote for each such request "Open Market" 'ptuducts or 'Sourced Goods'a will be considered and treated as regular upfits. However, they may be quoted up to a 10% mark up, if appli6able. 62 Identify any element of the total cost of acquisition that is NOT included in the pricing submitted with your response. This includes all additional charges associated with a purchase that are not directly identified as freight or shipping charges. Fot example, list costs for items like pre- delivery inspection, installation, set up, mandatory training, or initial inspection. Identify any parties that impose such costs and their relationship to the Proposer.
All considerations have already been taken into account in its eniirely. The Price Summary Page and Price Table contained in the price file includes all considered costs. Although if a member requested a specialized quote for a unique situation that requires special training, direction, or installation, the additional cos(s would be added as a part of the upfit and then included inside the member's quote. 63 If freight, delivery, or shipping is an additional cost to the Sourcewell participatirig entity, describe in detail the complete freight, shipplng, and delivery ptogram.
All manufactures charge a standard 'aFackory Destination Chargeo. However, that is separate from the 'freighUdestination cost that members may incur to ship a vehicle to and from an installer, if applicable. These subsequent locational movements may bare additional freight costs that will be outlined withinlhe members quote for their review prior to purchase.
64 Speciflcally describe freight, shipping, and delivery terms or programs available for Alaska, Hawaii, Canada, ot any offshore delivery.
Freight, shipping, and delivery terms among these regions sometimes carry additional logistical charges for added ferry, port and driver costs from both to and from the mainland. These added costs will be disclosed on the quote for members to review and approve prior to purchase.
65 Describe any unique distribution and/or delivery methods or options offered in your proposal.
National Auto Fleet Group already has a well-established Automobile Franchise Distribution Network that allows for swiTt and relatively seaml6ss delivery to members and their end users.
Table 12: Pricing Offered
Line
Item The Prictng Offered !n this #roposal is: "- -,- ' Comments - 66 c. better than the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing departments. NAFG Strives to offer the best overall value to the member with
each and every quote.
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
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Line
Item Question Response "
67 Specifically describe any self-audit process or program that you plan to employto veri§ compliance with your proposed Contract with Sourcewell. This process includes ensuring that Sourcewell participating entities obtain the proper pricing,that the Vendor reports all sales under the Contract each quarter, and that theVendor remits the proper administrative fee to Sourcewell. Provide sufficient detailto support your ability to repori quarterly sales to Sourcewell as described in theContract template.
Sourcewell pariicipating members ate able to obtain proper pilcing directly from our website, where they are able to use our user-friendly design iobuild and price their vehicles. The NAFG is updated daily to reflect updated manufacturer MSRP information. Our system will provide memberswith an accurate quote 99.99% of the time. In addition, NAFG has a stream line and organized process hat calculates administrative fees and allows NAFG to give a turnaround time of 15 - 30 days for quarterlyreporis. 68 If you are awarded a contrac(, ptovide a few examples or inteinal metrics thatwill be tracked to measure whether you are having success with the contract.
One of the intemal metrics NAFG uses to (rack and measure success with the Sourcewell Contract is maintained through our website. Our website keeps a detailed log of quotes that members are generating. Weoversee and keep track of how many quotes are being generated and which quotes are met with a purchase order. Every month we evaluate oursales indicators and closely monitor the volume and fisqusncy of sales.
One example is by evaluating which members are purchasing from our platTo+m - new members or frequent members to ensure we are growing our member base. We use these metrics to measure our projected growthrate and work to exceed our expectations. eg Identify a proposed administrative Tee that you will pay to Sourcewell for facilitating, managing, and promoting the Sourcewell Contract in the event thatyou are awarded a Contract. This fee is typically calculated as a percentage of 1:::E:':E:.E="':"":""-'=='==:""-=-
NAFG will submit $ 300 per vehicle purchased through NAFG and $ :_o0per vehicle purchased though out partner dealer Alan Jay Automotive. Forthe purpose of an admin fee there are no other partner dealer groups ICO"lde'd
Table 14A: Depth and Breadth of Offered Equipment Products and Services Line '
Item Question Response"
70 Provide a detailed description of the equipment,
products, and services that you are offering in your
proposal.
NAFG has provided a "Model Roll Out" Charts in the "Price File" zip, but of the 15 manufacturers werepresent, they have over 100 makes and models for members to choose from that range from Class1-3 and supporting Class 4 Cab and Chassis kucks. NAFG's platforms can add any upflt oT theirchoosing, ranging Ttom toolboxes to One Mechanic Bodies. Any and all upffls can be added to anyone of our vehicles through one of our upfit partner suppliers or by an upfit supplier of the memberschoosing. NAFG end the supplier will work together to supply members with turnkey quotes.71 Within this RFP category there may be subcategones of solutions. List subcategoiy titles that best describe your products and services.
National Auto Fleet Group lists the makes and models oT all 15 manufacturers we represent under theZIP File "All 15 Manufactures". These 15 0EMs make up over TOO combined makes, models, andengine combinations for membeirs to select from along with several subtitle "Upfits" detailed formembers in the price file.
Table 14B: Depth and Breadth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text boxorovided, as necessary.
Line Item Category or Type Offered " Comments
72 Automobiles r- Yes
r No
15 Manufacturers totaling well above 700
makes and models
73 Sport utility Vehicles (; Yes
r No
15 Manufacturers totaling well above 700
makes and models
74 Vans (- Yes
r No
15 Manufacturers totaling well above 700
makes and models
75 Trucks (; Yes
r No
15 Manufacturers totaling well above 700
makes and models
76 Vehicles described in Lines 72-75 above for Public Safety applications
(; Yes
r No
15 Manufacturers iotaling well above 700
makes and models
77 Conventional intemal combustion models n Yes
r No
15 Manufacturers totaling well above 700
makes and models
78 Natural gas or propane autogas, hybrid, or altemative fuel models
(; Yes
r No
15 Manufacturers totaling well above 700
makes and models
79 Electric powered models (- Yes
r No
15 Manufacturers totaling well above 700
makes and models
Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
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Contract Section Term, Condition, or Specification Exception or Proposed Modification ' Documents
Ensure your submission document(s) conforms to the following:
1. Documents in PDF Format are preferred. Documents in Word, Excel, or compatible formats may also be provided.
2. Documents Should NOT haVe a security password, aS Sourcewell mad net be able tO open the file. It iS 70ur Sale respOnSibilitd tO ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.
3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.
4. If you need to upload more than one (1 ) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than (ine (1 ) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan."
P - NAFG Price File for Bid 091 521.zip - Monday September 13, 2021 19:29:27 Financial Strentith and Stabilitv - Market Success and Financial Stability.zip - Monday September 13, 2021 I 9:30:12 Marketint) Pmn/Samples - Marketing Plan Compressed.zip - Tuesday September 14, 202111:38:30 WMBE/MBE/SBE or Remtpd Certificates-Insurance and Related Documents.zip - Tuesday September 14, 202111 :40:18 Warranty Information - Warranties RFP 091 521.zip - Tuesday September 14, 2021 1l :40:36 Stant'tard Transaction Document Samples - Standard Transaction.zip - Monday September 13, 2021 19:54:48 Upload Addiiional Document - ALL 15 Makes and Upfits.zip - Tuesday September 14, 2021 11 :35:54 Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
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DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-F1A7A7104FDA Addenda, Terms and Conditions
PROPOSER AFFIDAVIT AND ASSURANCE OF COMPLIANCE
I certify that I am the authorized representative of the Proposer submitting the foregoing Proposal with the legal authority to bind the Proposer to this Affldavit and Assurance of Compliance:
1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence.
2. The Proposer warrants that the information provided in this Proposal is true, correct, and reliable for purposes of evaluation for contract award.
3. The Proposer, including any person assisting with the creation of this Proposal, has arrived at this Proposal independently and the Proposal has been created without colluding with any other person, company, or parties that have or will submit a proposal under this solicitation; and the Proposal has in all respects been created fairly without any fraud or dishonesty. The Proposer has not directly or indirectly entered into any agreement or arrangement with any person or business in an effort to influence any part of this solicitation or operations of a resulting comract; and the Proposer has not taken any action in restraint of free trade or competitiveness in connection with this solicitation. Additionally, if Proposer has worked with a consultant on the Proposal, the consultant (an individual or a company) has not assisted any other entity that has submitted or will submit a proposal for this solicitation.
4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest exists when a vendor has an unfair competitive advantage or the vendoras objectivity in performing the contract is, or might be, impaired.
5. The contents of the Proposal have not been communicated by the Proposer or its employees or agents to any person not an employee or legally authorized agent of the Proposer and will not be communicated to any such persons prior to Due Date of this solicitation.
6. If awarded a contract, the Proposer will provide to Sourcewell Participating Entities the equipment, products, and services in accordance with the terms, conditions, and scope of a resulting contract
7. The Proposer possesses, or will possess before delivering any equipment, products, or services, all applicable licenses or certifications neCeSSar)/ to deliver such equipmeni products, or services under any resulting contract.
8. The Proposer agrees to deliver equipment, products, and services through valid contracts. purchase orders, or means that are acceptable to Sourcewell Members. Unless otherwise agreed to, the Proposer must provide only new and first-quality products and related services to Sourcewell Members under an awarded Contract.
9. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders.
10. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic," etc.), either substantially or in their entirety Under Minnesota Statutes Section 13.591, subdivision 4, all proposals are considered nonpublic data until the evaluation is complete and a Contract is awarded. At that point, proposals become public data. Minnesota Statutes Section 13.37 permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data Practices Act.
11. Proposer its employees, agen(s, and subcontractors are not:
1. Included on the "Specially Designated Nationals and Blocked Persons"list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found m: https://wiivw.treasurv.gov/ofac/downloads/sdnlist pdf;
2. Included on the government-wide exclusions lists in the United States System for Award Management found at: https'//sam.gnv/SAM/: or
3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation. r:r By checking this box I acknowledge that I am bound by the terms or the Proposer's Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Jesse Cooper, Fleet Manager, 72 Hour LLC
The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid. r Yes c No
The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC
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DocuSign Envelope ID: CF25B13B-7BO9-48BC-B85D-FIA7A7104FDA Check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.
File Name
Addendum 6 Autos SUVs Vans Trucks RFP D9152'l
Wed September 8 2021 06:27 PM
Addendum 5 Autos SUVs Vans Trucks RFP 091521
Tue September 7 2021 07:28 PM
Addendum 4 Autos SUVs Vans Trucks RFP 091521
Thu August 26 2021 05:55 PM
Addendum 3 Autos SUVs Vans Trucks RFP 091521
Mon August 23 2021 09'47 AM
Addendum 2 Autos SLIVs Vans Trucks RFP 091521
Sun August 8 2021 09:02 PM
Addendum 1 Autos SuVs Vans Trucks RFP 091521
Thu August 5 2021 03:58 PM
Bid Number: RFP 091521
I have reviewed the
below addendum and
atiachments (if
applicable)
Pages
Vendor Name: 72 HOUR LLC
14 288
Docusign Envelope 10. F4l490C'l-FB2A-419C-A8ED-E30F112537A3 AMENDMENT#1
TO
CONTRACT# 091521-NAF
THIS AMENDMENT is effective upon the date of the last signature below by and between Sourcewell and 72 Hour LLC dba: National Auto Fleet Group (Supplier).
Sourcewell awarded a contract to Supplier to provide Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories to Sourcewell and its Participating Entities, effective November 4, 2021, through November 8, 2025 (Contract).
The parties wish to amend the Proposal to ensure compliance with Sourcewell"s Procurement Policy and standard government procurement practices.
NOW, THEREFORE, the parties amend the Contract as foliows:
Line item 28 of "Table 6: Ability to Sell and Deliver Service" of the Proposal is modified to add the following:
"For Tesla and Mullen vehicles, the Participating Entity will work directly with Supplier when ordering the vehicle. Once a purchase order is issued and received by Supplier, Supplier will work with the appropriate Tesla or Mullen representative to process the order and deliver the vehicle directly to the Participating Entity. All necessary paperwork will be handled directly between the Participating Entity and Supplier." Except as amended by this Amendment, the Contract remains in full force and effect.
Sourcewell 72 Hour LLC
dba: National Auto Fleet Group
Signed by:
COFD2A139D[)6489
Jeremy Schwartz, Chief Operating Officer
f'insg t,aS"CM)fUl'
Jesse Cooper, Reet Manager
Date: 2/21/2025 I 4:19 PM CST Date: 2/21/2025 i 2:34 PM CST Sourcewell Contract # 091521-NAF I Amendment #1
Page I of 1
2/0
289
290
Attachmerit B
Agenda Bill 03/10/26
091521 -NAF
Sourcewell *
Solicitation Number: RFP #091521
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.0. Box 219, Staples, MN 56479 (Sourcewell) and 72 Hour LLC dba: National Auto Fleet Group, 490 Auto Center Drive, Watsonville, CA 95076 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell's cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B. EXPIRATION DATE AND EXTENSION. This Contract expires November 8, 2025, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.
C. SURVIVALOFTERMS.NotwithstandinganyexpirationorterminationofthisContract,all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted underthe Solicitation Number listed above.
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Supplier's Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer ciose-out or refurbished Equipment or Products if they are clearly indicated in Supplier's product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity's site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B, WARRANTY, Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.
In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier's dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer's warranty that extends beyond the expiration of the Supplier's warranty will be passed on to the Participating Entity.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier's authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier's responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier's Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity"s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for theirintended purpose, and includes all costs to the Participating Entity's requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. Ifthe damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be 2 ,23
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returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity.
C. HOTLISTPRICING.AtanytimeduringthisContract,Suppliermayofferaspecificselection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those ciose-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
* Identify the applicable Sourcewell contract number; @ Clearlyspecifytherequestedchange;
* Provide sufficient detail to justify the requested change; 3 .2t{
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* Individuallylist all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and * Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restaternent must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell's cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity's authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity aqcessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity's use of this Contract is at the Participating Entity's sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Supplier's employees may be required to perform work at government- owned facilities, including schools. Supplier's employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHA.SING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell 4Rev. 3/2021
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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier's acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONALTERMSANDCONDITIONS/PARTICIPATINGADDENDUM.Additionaltermsand conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum; the terms of which will be negotiated directly between the Participating Entity and the Supplier. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will notbe made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity"s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity's order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person ischanged. The Account Representative will be responsible for:
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* Maintenance and management of this Contract;
* Timely response to all Sourcewell and Participating Entity inquiries; and * Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minirrium of orie business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTMTY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTMTY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
* Participating Entity Name (e.g., City of Staples Highway Department); * Participating Entity Physical Street Address;
* Participating Entity City;
* Participating Entity State/Province;
* Participating Entity Zip/Postal Code;
* Participating Entity Contact Name;
* Participating Entity Contact Email Address;
* Participating Entity Contact Telephone Number;
* Sourcewell Assigned Entity/Participating Entity Number; * Item Purchased Description;
* Item Purchased Price;
@ Sourcewell Administrative Fee Applied; and
* Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased 6 21
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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier's name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above "Attn: Accounts Receivable" or remitted electronically to Sourcewell's banking institution per Sourcewell"s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract's expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZEDREPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier's Authorized Representative is the person named in the Supplier's Proposal. If Supplier's Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C, AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understamjing regaming tt'iis Contract, whether written or orai, may be used to bind either party.For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of A.rticles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys" fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell"s responsibility will be governed by the State of Minnesota's Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewe!l grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use thetrademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell's relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier's trademarks in advertising and promotional materials for the purpose of marketing Supplier's relationship with Sourcewell.
2. L7m7tedR7ghto7S7tb/7cense.Therightandlicensegrantedhereinincludesalimitedright of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, 8 ,'2g
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resellers, marketing representatives, and agents (collectively "Permitted Sublicensees") in advertising and promotional materials for the purpose of marketing the Parties" relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party's trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party's trademarks only in good faith and in a dignified manner consistent with such party's use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. As applicable, Supplier agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Supplier in violation of applicable patent or copyright laws.
5. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party's name or logo (excepting Sourcewell's pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell"s written directions.
B. PUBLICITY.AnypublicityregardingthesubjectmatterofthisContractmustnotbereleased without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
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14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota wi1i govern tt'iis Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergas Falls, Mirinesota.
15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party's reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. T he parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Per7ormaricewhi/eD7spute7sPend7ng.Notwithstandingtheexistenceofadispute,the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
Nonperformance of contractual requirements, or
A material breach of any term or condition of this Contract. 10 31
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The party claiming default must provide written notice of the default, with 30 calendar days tocure the default. Time allowed for cure will not diminish or eliminate any liability for liquidatedor other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
* Exercise any remedy provided by law or equity, or * Terminate the Contract or any portion thereof, including any orders issued against theContract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effectat all times during the performance of this Contract with insurance company(ies) licensed orauthorized tO da business in the State Of Minnesota having an "AM BEST" rating Of A- Or better,with COVerage and limits of insurance not less than the following:
1. Workers' Compensation and Employer's Liability.
Workers' Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
5500,000 each accident for bodily injury by accident §500,000 policy limit for bodily injury by disease S1500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office ('150") Commercia) General Liability Form CGOOOI (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
!>1,000,000 each occurrence Bodily Injury and Property Damage 51,000,000 Personal and Advertising Injury
S2,000,000 aggregate for Products-Completed operations 92,000,000 general aggregate
3. CommercialAutomobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms Rev. 3/2021
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no less broad than 150 Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
Sl,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer's Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
S2,000,000
5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Suppiier's security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data-including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.
Minimum limits:
!;2,000,000 per occurrence
S2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate ofinsurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, p.o. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONALINSURED ENDORSEMENT AND PRIMARY AND NON=CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier's commercial general liability insurance policy with respect to liability arising out of activities, "operations," or "work" performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is 12 33
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primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
D, WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESSLIABILITY/SELF-INSUREDRETENTION.Thelimitsrequiredbythis Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewel1 related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
Supplier certifies and warrants that neither it nor its principals are present1y debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 13Rev. 3/2021
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21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements inclciding the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. E3 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to "federal" should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier's Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of "federally assisted construction contract" in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 C.F.R. E3, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and implementing regulations at 41 C.F.R. E) 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACONACT,ASAMENDED(40U.S.C.j3141-3148).Whenrequiredbyfederal program legislation, all prime construction contracts in excess of S2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 u.s.c. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. Ei 5, "Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction"). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Laborin each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland "Anti-Kickback" Act (40 u.s.c. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. E) 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions. 14 36
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C. CONTRACTWORKHOURSANDSAFETYSTANDARDSACT(40US*C.§3701-3708).Where applicable, all contracts awarded by the non-federal entity in excess of SIO0,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. E3 5).
Under 40 u.s.c. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 u.s.c. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTSTOINVENTIONSMADEUNDERACONTRACTORAGREEMENT.lfthefederalaward meets the definition of "funding agreement" under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that "funding agreement," the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. fi 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 u.s.c. g 1251-1387). Contracts and subgrants of amounts in excess of !>150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 u.s.c. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 u.s.c. Ei 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. E3 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. E3 1989 Comp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names 15 3(,,
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of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presentiy debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
G. BYRDANTI-LOBBYINGAMENDMENT,ASAMENDED(31U.S.C.G1352).Suppliersmustfile any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 u.s.c. E3 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 u.s.c. § 1352).
H. RECORDRETENTIONREQUIREMENTS.Totheextentapplicable,Suppliermustcomplywith the record retention requirements detailed in 2 C.F.R. g 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. Er 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
1. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESSTORECORDS(2C.F.R.§200.336).Supplieragreesthatdulyauthorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier's discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier"s personnel for the purpose of interview and discussion re!ating to such documents.
L. PROCUREMENTOFRECOVEREDMATERIALS(2C.F.R.§200.322).Anon-federalentitythatis a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation 16 31
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and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. Ei 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds SI0,000 or the value of the quantity acquired during the preceding fiscal year exceeded SI0,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier not use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The u.s. federal government is not a party to this Contract or any purchase by an Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
0. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier's actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supp!ier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict ofinterest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the u.s. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
R. u.s. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with u.s. Executive Order 13224 and u.s. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITIONONCERTAINTELECOMMUNICATIONSANDVIDEOSURVEILLANCESERVICESOR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it wili comply with applicable requirements of 2 C.F.R. § 200.216.
T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322. 17Rev. 3/2021
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DocuSign Envelope ID: CF25B13B-7809-48BC-B85D-F1A7A7104FDA 091521-NAF
22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or witnout cause, upon 60 days' written notice to the other party. However, Sourcewell may cancel this Contract imi'nediately upon discovery of a material defect in any certification made in Supplier"s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell 72 Hour LLC dba: National Auto
Fleet Group
BV:aDoa's'g';i'3"9qby=""h
Docu8igned by:
Jeremy Schwartz
Title: Chief Procurement Officer
Jesse Cooper
Title: Fleet Manager
11/4/2021 l 1:28 PM CDT 11/4/2021 l 10:46 AM CDT
Date: Date:
Approved:
DocuSigned by:
8 y ; 7E4:!18F8 17A84CC...
Chad Coauette
Title: Executive Director/CEO
11/4/2021 1:34 PM CDT
Date:
18Rev. 3/2021
308
Attachment C
Agenda Bill 03/10/26
Department:
Date Prepared:
Prepared By:
City of South Gate
Supplemental Budget Request
FY 2025/26
Po!ice Dep-artment
4/28/2025
Lt. R. Amador
Funding Source
100-506-21-9003 $'14.000
"150-556-21-8310 $12,000
,q-,,f,
Position Title:
Employee %pe.a %" i'%ffi"g;';4$"' %iiQ'p,'%l"g'yaiffl' e (Click on cell and select Irpm drop-down list.)
Instruction: Enter salary range/step & monthly cost on(y.
Salary Monthly
PayType Range7Step (;ost
CalPERSo Retirement O.OO.O%
Medi6are 1.450%
Subtotal S
Annual
Cost
FY 2022/23
Budget Request
$-
Subtota
Description UnitCost
LeaseNewvehicleforDe'tgctiveBureau $ '12,-000
Purchase and install new code 3 equipment $ 13,000 Swa-p radio from old unit to new unit $ 1,000
(Note: Amounts should include applicable tax, delivery, installation, etc.
Qt)/
1$
1$
1$
Subtotal $
12 ,000
13 ,000
1 ,000
26,000
Total cost of supplemental request:
Less: offset of cost: (explain below)
26,000
Net cost of suppemental request: $ 26,000
"Justification for request: (attach additional pages if necessary) "See attached
309
, y
Justificatlon for request:
Detective Bureau vehicles are used by Detectives to conduct investigations b6th loca11y and outside the clty, As existing fleet vehicles get older, they become less dependable and also more costly to maintaiti. The proposea leased vehicle will replace Unit #137, a 2008 Dodge Charger with over 136,000 miles. The City's Fleet Master Plan called f6r'this vehlcle to be removed from service in 2021.
This supplemental request includes the cost of lease paymerits for the first year of the lease, as well as the cost of insjalling new emerge!alcy equipment and'swapplng the radio from Unit 137 to thp new Vehicle.
310
Department:
Date Prepared:
Prepared By:
City of South Gate
Supplemental Budget Request
FY 2025/26
Police Department
4/28/2025
Lt. R. Amador
Fund ng Source
100-506-21-9003 S14 000
100-506-21-6310 S12,000
y ':"i'f)
Position Title:
Employee Type: 2:J,-566fJ§g.;i6'36.q;'
(Click on cell and selec! from drop-down list)
Instruction: Enter salary range/step & month1y cost only.
Salary Monthly
Rarige/Ste,':i Cost
3e'!-Mi..-1
Pay Type
Base Salary
CalPERS Retirement O.OOO%
Me'dicare . 1.450%
Medical/Dental/\/ision
Ig!; e,3_4a:a;t.!,,a,i;%%3y.l:)i' Il=j
Subtotal $
Pay Type
'Base'Salary
CalPERS Retirement
Me;dicare
Medical/Dental/\/ision
Annua)
Cost
FY 2022/23
Budget Request
Subtotal
Description UnitCost
LeaseNewvehicleforNarcoticsUnit $ "i2,000
,P(irchase and iiistall new code 3 equipment S 13,000
Swaap radio from old unit to new unit $ 1,000
(Note: Amounts should include applicable tax, delivery, installation, etc.
Qty
1 1
1 Subtotal
12 ,000
13 ,000
1 ,000
26,000
Total cost of supplemental request:
Less: offset of cost: (explain below)
Net cost of supplemental request:
"Justification for request: (attach additional pages if necessary) 26,000
$ 26,000
"See attached
311
.!'t.
Justification for request:
Narcotics unit vehicles are used by Narcotics Detectives tO conduct investigations ootn iocaiiy aq6 outslde the city. The vehicles must be dependable as they are often used to conduct surveillance and vehicle malfunctions can compromise a surverllance operation. As existing fleet vehicles get older, they become less dependable and also rriore cosily to maint,;iin. The proposed leased yehicle will replpce Unit #175, a 2008 Dodge Charger with over 186,000 miles. The City's Fleet Master Plan called for this vehicle to be removed from senice in 2021.
This supplemental request Includes the cost of lease paymerits for the first year of the lease, as well as the cost of insfallirig new.emergency equipment arid swappi,ng the 'radio from Unit 175 to the new vehicle.
312
Attachment D
Agenda Bill 03/10/26
Memorandum
Invoice KIA AMERICA
WESTERNREGION 111PETERSCANYONROADIRVINECA92606-1790
INVOICE DATE
01/26/2028
INVOICE NO
1000848550
PORT OF EN'rRY
WEST POINT
DEALER NAME AND ADDRESS
Kia Downtown Los Angeles
2alOO S. FIGUEROA STREET
LOS ANGELES CA 90007
FINANCE INSTITUTION AND ADDRESS
HYUNDAI CAPIT AL
4000 MacArthur Blvd
Newport Beach CA 92660
DEALER CODE
CA308
SHIPPEO TO
Kia Downtown Los Angeles
2100 S. FIGUEROA STREET
LOS ANGELES CA 90007
ISOLD ORDER
REQ 10 lRl006260-103:iOll
YEAR
2027
MODEL
JAC4455
OFT.
10 DESCRIPTION
TELLURIDE X-LINE EX AV /D
VEHICLE IDENTIFICATION NO.
5XYPCES19VGOO8771
ENGINE NO.
G4KPSH107474
EXT. CODE
GWP
EXT. COLOR
GLACiAl WHITE PEARL
INT. CODE
RBQ
INT. COLOR
BLACK
KEY NO.
K12185
ADDITIONAL INSTALLED EQUIPMENT :
iln addlUoii to or in place ol slandam features)
OPTIONS:
GWP Glacial White Pearl Paint
cBX Cross Bars X-Line
CF Carpeted Floor Mats
CSR CONTRIBUTION
DMG CONTRIBUTION
a ;Qi
q
i;lN -,if
ffl
2i I rl
ia
I
I ! l)
!lI
I ! m! !!!l ! ! ! t
$47,290.00 $46,107.00
1495.00
$395.00
l250.OD
$459.00
$327.00
$207.00
$3.00
$471.00
$48,430.00 $47,574.00
$1,545.00 $1,545.00
TOTAL $49,975.00 S49119.00
l(h'!ffatfaWiM!&aJJJW '
DEALER/FINANCING BANK - FOR REFERENCE
PURPOSES, PLEASE REFER TO ACH/DTC
MEMORANDUM INFORMATION ONLY
THIS DOCUMENT DOES NOT TRANSFER TITLE
i000848550-JACi 21 0J AC-KRSO473-FPAO241
ORIGINAL
!'t
313
Furchase Infiirniatlon Sczen
1. Contract Da!ei
2. (W)Finlnxti
3. (W)Clty/County/Zipi
' 4. l,F Nam*i
5. Stock Numbsri
6. M.!+.R.9.i
7. Cash Nc*i
a. (W)Alts+iiile/We(%qsi
9. Customer Cash Dovini
10. (!V)Defen*d Oiimi
(iv)ii*bate(s)i
t2. (W)Trmii(s) I & 2i
total Devsi i
t3. DOC %e
16. DMV(F!ttR!i/F7-FEES)
17. (WiTobl Pets
Command WTndow
21. SalesTax 4VAmti
22- "PAYMENTa" = = = ==b :1
0:!jl6/i6-' - - - - -
-a'ii5 "- ' - ' - - - -'
[ffil-
l
Deal rlumben
(W)ServiceCori!tacki
(W)asp fioltctioni
(l'/)Maink ?lani
Total Other Chargyi
Tahl 6T 9ayrnaiitxi
D*feirad Pric*i
Unpaid aalancei,
2 0702 (DT-tV Est.)
[€ L';:5J T I' 7 ' f?'ZE,7"' T I -- Ij
IS --54-,547-:1-('-=- - - i
lS 48.975.00 i
i'i -'-5ffi. - 'i
L ,J
L. J
SP6-Waming i I .!iF8-Fiq/'Tax
\,I'E)
314
Memorandum
Invoice KIA AMERICA
WESTERN REGION lil PETERS CANYON ROAD IRVINE CA 92606-1790
INVOICE DATE
08/27/2025
INVOICE NO
0020892752
PORT OF ENTRY
WEST POINT
DEALER NAME AND ADDRESS
Kia Downtown Los Angeles
2100 S. FIGUEROA STREET
LOS ANGELES CA 90007
FINANCE INSTITtJTION AND ADDRESS
HYUNDAI CAPITAL
4000 MacArthur Blvd
Newport Beach CA 92660
DEALER CODE
CA308
SHIPPED TO
Kia Downtown Los Angeles
2100 S. FIGuEROA STREET
LOS ANGELES CA 90007
ISOLD ORDERI REQID lCA3082507J44520001
MODEL/OPT
J4452/010
DESCRIPTION
TELLURIDE EX X-LINE
YEAR
2025
SERIAL NO.
5XYP3DGC8SG692339
G6!)'NNGsNsEoNjl'2196 Ia
!
r
d z
! 4i
I'l !i': r=ri 'f
I*
Sal
t r i x 11Ami J#l i diAEXT.CODE
GWP
EXT.COLOR
GLACIAL WHITE PEARL
INT.CODE
WK
INT.COLOR
BIACK
KEY NO.
Kli068 $46,4E15.00 $45,090.OU
ADDITIONAL INSTALLED EOLIIPMENT :
lln addiUon lo or in place of standard faalunes) '
OPTIONS:
GWP Glacial White Pearl Paint
CF Carpeted Floor Mats
CSR CONTRIBUTION
DMG CONTRIBUTION
$495.00
$225.00
I459.00
$187.00
$3.00
$457.00
$47,205.00
$1,415.00
S46,196.00
$1,415.00aipii ). . : > INLAND FREIGHT& HANDLING
DEALER/FINANCING BANK . FOR REFERENCE
PuRPOSES, PLEASE REFER TO ACH/DTC
MEMORANDUM INFORMATION ONLY
THIS DOCUMENT DOES NOT TRANSFER TITLE
TOTAL $48,620.00 $47,611.00
0020892752-Jl1 80J-KRSO465-FPAO235
ORIGINAL
315
Purchase ZnFarmaklon Screen
Cemrad Daket
(W)Fliilrv!i
(li'l)Clty/ County/Zipi
LaF Jlamet
Stock Numbeii
Mj.R.?.i
Cash I)ric*i
(W)AiitrSale/WaC)vaxi
Cuxtiimer Cash Diihni
It). (W)Ddaned Doiini
tl. (W)Rebate(i)i
;i (W)Trade(s) 1 k 2.
Tiital Doiini
13. DOC Fee t
14- CATlra%at
15. (W)gmog/GVW Feesi
, l!i. DMV(Pi-RS/F7-FffiES)
17. (W]Toial Fees
Command
22. "?AYlllEtff"i=====>>i
21. Sal*sTax 'iVAmki
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rijiTgx-i
18. 19.
"- -- --'j:0.
'kS j6,920.Oa .
l
i5 2.000.00
L
4 j lS 645.0g l
Dial Numb*+i
( l'/ )SiinkaConltadi
(V/)Gap 9tokectiohi
(Vi')t-lalnl T'leiii
Sale Subtotal:
Tiibl Finaiiciid:
Finarica Chargei
Tatal Other Chargeii
Tfft:if of t}aymariti:
Dlll(!ITh(I l)riciii
r2nu7322-(D-14V-E'rria)-- --
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l'----- --- ----T
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Catid: [2''-"7IJ-'-"'.''J
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I)urchaa* InFormatlan Screen
!. Corikqd Dansi
2. (W]Finlnsti
3. (%V)City/Coiiiiky/Zipi
4. LF llam*i
5. 'itock Numbiii:
6. M.S.R.i}.t
7 - Cash G'ilcet
8 . (W)Aher!iale/WeOvaxi
9 . Cutlorii*r Cash Oo'hni
IO. (W)o*fan*d Doi'ini
11. ('iV)Riibata(ii)i
12. (fV)Trade(i) I & 2i
Tatal Dohii i
13. OOC %a i
14 - CA Tire Feei
15 . (W)Smog/CiVW Fi*ii
16 . DMV(F5fflRS/17-Fffi!!+)
17 . (W)Total Feiis
Command Window -- '
22. "?AYI-IiNT"=a===>>i
21. SaleiTax %/Amki
j : 19.
IJ' . 20.
I
L
k
1;3s.oo
[s§J--l
Dial Numb*ii
(V/)SarvlceConkricki
(V/)aap erotic)loni
(l!l)Maint 91ani
Sale Subtotil+
Tobl Fliianc*di
F:riaric* Chargei
Total Ol+)ei CharHzi
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1/20/2026, 5:34 PM 321
Item No. 8
; (11 i((H"C" i :l'i-i (1 lll'l '( - i i"
vi48 - 5 ',i026
FILED Ciffl of South Gate
CITY COUNCIL
l)'.lS{"I
AGENDA BULL
For the Regular Meeting of: March 10, 2026
Originating Department: Community Developm
DepartmetitDirector: 4abr71Perez
Ciffl Manager:
Rob Houst6n
SUBJECT: MEMORANDUM OF UNDERST ANDING (MOU) BETWEEN GATEWAY
CITIES COUNCIL OF GOVERNMENTS AND THE CITY OF SOUTH GATE FOR
TECHNICAL ASSISTANCE UNDER THE STRATEGIC GROWTH COUNCIL
REGIONAL CLIMATE COLLABORATIVES PROGRAM FOR THE ADAPTIC REUSE OF THE SOUTH GATE SUPERIOR COURT BUILDING AT 8640 CALIFORNIA AVENUE AS A COMMUNITY RESILIENCE CENTER.
PURPOSE: This MOU is to detail the agreement between the Gateway Cities Council of Governrnents (GCCOG) and the City of South Gate for technical assistance under the Strategic Growth Council Regional Climate Collaborative Program for conceptual design services for the adaptive reuse of the former South Gate Superior Court building for purposes of a Climate Resilience Center (CRC).
RECOMMENDED ACTIONS: it is recommended that the City Council:
a. Approve the Memorandum of Understanding ("MOU") between the Gateway Cities Council of Governments and the City of South Gate for technical services under the Strategic Growth Council Regional Climate Collaborative Program.
FISCAL IMPACT: There is no impact on the General Fund. Professional design services for this project are funded through the Strategic Growth Council and administered by the GCCOC.
BACKGROUND: The GCCOC is a recipient of a Regional Climate Collaboratives (RCC) Program Grant for the California Strategic Growth Council (SGC). As part of the RCC Grant, the GCCOG provides technical assistance to cities to address climate related priorities. The City of South Gate will receive $15,000 in technical assistance to facilitate a conceptual design to support the adaptive reuse of the historic South Gate Superior Court building, located at 8640 California Avenue, into a CRC that will serve as a centralized hub for disaster preparedness, emergency response, and post- event recovery. The CRC would enhance community resilience to natural hazards and climate- related risks, including extreme heat, earthquakes, and flooding, by providing reliable facilities, services, and resources before, during, and after emergencies. 1 322
Outside of emergency activations, the CRC is envisioned as an active, flexible, and inclusive community asset, accommodating a range of complementary uses such as cultural and arts programming, nonprofit and community-based organization space, small business and workforce development initiatives, and coworking or meeting spaces. The building is currently unoccupied and includes a ground-floor level and basement level.
The GCCOC will engage a consultant to perform the conceptual design services and manage payment of those services pursuant to the Grant agreement and RCC guidelines. Preparation of conceptual plans for a CRC would demonstrate readiness for 'future 'funding opportunities, including the Strategic Growth Council Community Resilience Center 2026 round 2 grant cycle with implementation grants up to $10 million for CRC construction and programming support.
ATTACHMENTS: A. MOU between GCCOG and City of South Gate 2 323
Attachment A
Agenda Bill 03/10/26 SOUTH GATE
MEMORANDUM OF UNDERSTANDING
BY AND BETV\/EEN
GATEWAY CITIES COUNCIL OF GOVERNMENTS
AND THE CITY' OF SOUTH GATE
FOR TECHNICAL ASSISTANCE UNDER THE
STRATEGIC GRO\/VTH COUNCIL - REGIONAL CLIMATE COLLABORATIVES
PROGRAM
This Memorandum of Understanding ("MOU") is dated ("bffective Date") and entered into by and between the Gateway Cities Council of Governments ("GCCOG") and the City of South Gate ("City") (each a Party to this MOU and collectively, the "Parties").
RECITALS
A. The GCCOG is a recipient of a Regional Climate Collaboratives (RCC) Program Grant from the California Strategic Growth Council (SGC). As part of the RCC Grant, the GCCOG is able to provide certain technical assistance to cities in accordance with the GrantAgreement between the GCCOG and the SGC and the RCC Guidelines.
B. The City is in need of such technical assistance pursuant to the Grant Agreement and the RCC Guidelines and agrees to the terms and conditions set forth herein to receive such funding.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT:
1. Scope of Work and City Responsibilities.
The City requests technical assistance as set forth in the Scope of Work attached hereto as Exhibit "A" and incorporated herein by this reference. The City agrees to:
A. Provide a point of contact to serve as the City's Project Manager with name, title, and contact information.
B. Participate in scheduled conference calls and meetings from the anticipated start date to completion date.
C. Respond to the GCCOG or its consultant's requests related to the Scope of Work in a timely manner, such as providing feedback on draff documents, approaches, and designs.
1 324
SOUTH GATE
2. GCCOG Responsibilities.
The GCCOG will engage one of its technical assistance consultants to perform the Scope of Work requested by the City and manage the payment of those services pursuant to the Grant Agreement and RCC Guidelines.
3. Governinq Law.
This MOU shall be governed by the laws of the State of California and venue shall lie in Los Angeles County.
4. Disputes.
Any dispute arising under this MOU which is not resolved by mutual agreement shall be decided through binding arbitration by a neutral arbitrator selected by the Parties. The arbitration proceedings shall be governed by any rules the Parties mutually agree upon in writing. A judgment upon the award rendered by arbitration may be entered into any court having jurisdiction thereof. The arbitrator shall have the authority to grant any remedy or relief that would have been available to the Parties had the matter been heard in a court of law. Following arbitration, the arbitrator shall prepare a written decision containing the essential findings and conclusions on which the award is based. All expenses and fees for the arbitrator and expenses for hearing facilities and other expenses of arbitration shall be borne equally by both Parties unless they agree otherwise in writing or unless the arbitrator in the award assesses such expenses against one of the parties or allocates such expenses other than equally between the Parties. Either Party may bring an action in court to compel arbitration under this MOU or to enforce an arbitration award.
5. No Waiver.
A waiver by either Party of any breach of any term, covenant or condition contained in this MOU shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained in this MOU, whether of the same or different character.
6. Severability.
If any part of this MOU is held invalid, the remaining terms and conditions shall not be affected unless their enforcement under the circumstances would be unreasonable, inequitable, or otherwise frustrate the purposes of this MOU.
7. Independent Contractor.
2 325
SOUTH GATE
The Parties are independent entities and are not to be, and shall not be, construed as joint venturers, partners, employer/employee, or agents one of the other, and neither shall have the power to bind or obligate the other except as set forth in this MOU.
8. Construction.
The Parties have participated jointly in the negotiation and draffing of this MOU. In the event an ambiguity or question of intent or interpretation arises with respect to this MOU, this MOU shall be construed as if draffed jointly by the Parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this MOU.
9. Captions.
The captions herein are for convenience and references only and are not a part of this MOU and do not in any way limit, define or amplify the terms and provisions hereof.
10. EntireAqreement.
This MOU, including Exhibit A attached hereto, constitutes the entire agreement between the Parties and supersedes any previous oral or written agreements with respect to the subject of this MOU. No amendment or modification to this MOU shall be valid and binding unless in writing and signed by authorized representatives of the Parties.
11. Authority to Execute this MOLI.
Each person executing this MOU on behalf of a Party warrants and represents that they have the authority to execute this MOU on behalf of that Party and the authority to bind that Party to the provisions of this MOU.
12. Counterparts.
This MOU may be executed in counterparts, each of which shall be deemed original, and all of such counterparts together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the authorized representatives of the Parties have caused this MOU to be executed as of the date of the last signature below. [Signatures appear on the following page.]
SOUTH GATE GCCOG
3 326
SOUTH GATE
Joshua Barron, Mayor
Date:
APPROVED AS TO FORM:
DRAF'T(5
Raul F. Salinas, City Attorney
A1TEST:
Yodit Glaze, City Clerk
Hector De La Torre, Executive Director
Date:
APPROVED AS TO FORM:
Ivy M. Tsai, General Counsel
4 327
SOUTH GATE
EXHIBITA
SCOPE OF WORK
BACKGROUND
The GCCOG is a recipient of a Regional Climate Collaboratives (RCC) Program Grant from the California Strategic Growth Council (SGC). GCCOG has collaborated to create the Gateway Cities Regional Climate Collaborative (GCRCC), an RCC-grant-funded partnership designed to strengthen climate readiness across the region by providing support for local planning, project implementation, and community engagement that helps cities access funding and prepare for climate impacts. The collaborative focus area includes the cities of Bell, Bell Gardens, Cudahy, Huntington Park, Lynwood, Maywood, South Gate, and Vernon, along with two unincorporated communities.
Partner organizations include: the Gateway Cities Council of Governments, SELA Collaborative, Grid Alternatives, TreePeople, AltaMed, and the LA County Office of Sustainability.
OVERVIEW
As part of the RCC Grant, the GCCOG is able to provide technical assistance to cities in accordance with the GrantAgreement between the GCCOG and the SGC, and the RCC Guidelines. The City is in need of such funding for technical assistance pursuant to the GrantAgreement and the RCC Guidelines and agrees to the terms and conditions set forth herein to receive such funding.
$15,000 in assistance is being offered to the City of South Gate to facilitate a conceptual design of a community resilience center. City of South Gate has identified community and climate resilience as a priority. We will aim to support funding applications that expand overall readiness for climate resilience. Other efforts may be identified to support climate projects and planning, workforce development, climate education, and/or capacity-building activities (such as grant writing and administration training).
TIMELINE
Activity Time Period
COG will work with City of South Gate on RFP to contract conceptual designer for resilience center
December 2025 -
February 2026
Design services and technical assistance offered to City and coordinated through COG
February - June 2026
Final deadline to receive services June 30, 2026
5 328
Item No. 9
S o i it r" ('-i '<:l-r f(I"' l'l'S "(-. ' l" l'
MAR - 5 2.026
FILED
fal'lf,,,
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CITY COUNCIL
AGENDA BJ[LL
For the Regular Meeting of: March 10, 2026
Originating Department: Administrative Services
Luis Frausto ob Houston
SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2024-25 ANNUAL
COMPREHENSIVE FINANCIAL REPORT
PURPOSE: To present the City of South Gate's Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR) to the City Council for review.
RECOMMENDED ACTIONS: Recommendation to receive and file the City of South Gate's Aru'iual Comprehensive Financial Report (ACFR) for the Fiscal Year Ended June 30, 2025.
FISCAL IMPACT: There is no fiscal impact associated with the recornrnended action. The item is informational and fulfills the City's annual financial reporting requirement under California Government Code.
ANALYSIS: The presentation of the City's Annual Comprehensive Financial Report (ACFR) is an important element of the City's cornrnitment to financial transparency, accountability, and responsible fiscal stewardship
The ACFR reports the City's financial results for the fiscal year that ended June 30, 2025. While it provides a comprehensive record of the City's financial activity during that period, it does not reflect fiscal pressures that have developed since that date and are currently being evaluated through the City's ongoing budget development process. The Annual Comprehensive Financial Report (ACFR) presents the City's audited financial statements for the fiscal year ended June 30, 2025. The report was prepared by the Administrative Services Department in accordance with Generally Accepted Accoiu'iting Principles (GAAP) established by the Governrnental Accounting Standards Board (GASB).
California Governrnent Code and City Ordinance require that the City prepare an annual financial report and have it audited by an independent certified public accounting firm.
The City's independent auditors, Davis Farr LLP, conducted the audit of the financial statements for the fiscal year ended June 30, 2025. The auditors issued an unmodified ("clean") opinion, indicating that the financial statements fairly present the City's financial position and results of 329
operations in accordance with Generally Accepted Accounting Principles. The completion of the aru'iual audit represents a key component of the City's financial accountability framework and provides independent assurance regarding the accuracy of the City's financial reporting.
It is important to understand what the audit opinion represents. A clean audit confirnns that the City's financial statements are fairly presented in accordance with accounting standards. It does not indicate that the City's operating budget is structurally balanced or that the City is not facing fiscal challenges.
The ACFR presents the City's financial position on a government-wide basis and includes all funds, capital assets, restricted resources, and long-term obligations under accrual accounting.
Because these statements include the long-term value of infrastructure and legally restricted resources, they often present a stronger financial position than what is available to fund day-to- day municipal services.
ACFR Financial Highlights
As reported in the ACFR, the City's governrnent-wide net position totaled approximately $324.1 million as of June 30, 2025, representing an increase of $16.2 million from the prior fiscal year.
This increase primarily reflects capital asset activity, restricted funds, and other long-term accounting factors rather than changes in discretionary General Fund operating capacity.
The City reported approximately $352 million in capital assets, net of depreciation, reflecting continued investment in infrastructure such as streets, water and sewer systems, and public facilities.
During Fiscal Year 2024-25, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, which refined the accounting treatment for employee leave liabilities. Implementation resulted in a prior-period adjustment to beginning net position but did not impact cash balances or the City's operating results.
Understanding the ACFR in the Context of South Gate's Fiscal Reality This report reflects the City's financial position as of June 30, 2025, prior to the fiscal pressures currently being addressed through the FY 2026-27 budget process. The City's government-wide net position of $324.1 million may suggest financial strength to the average reader. It is critical that this figure be understood for what it actually represents - and what it does not.
A substantial portion of that $324. I million consists of capital assets: streets, water mains, sewer lines, parks, and public buildings - infrastructure that cannot be liquidated or redirected to pay for police officers, recreation programs, or any other municipal service. A significant portion of the remaining balance is held in restricted funds legally required for specific purposes, such as federal grants, water and sewer operations, and capital improvement programs. These dollars are not available to fund general City services.
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The General Fund finances most day-to-day municipal services residents experience, including police patrols, code enforcement, park maintenance, street cleaning, and City Hall operations. The General Fund is currently facing significant structural fiscal pressure.
The Structural Fiscal Pressures of the General Fund For several years, the City's General Fund has spent more than it collects on recurring revenues.
The gap was masked in recentyears by one-time federal American Rescue Plan Act (ARPA) funds, which were used to sustain service levels while longer-term solutions were evaluated. Those 'funds are no longer available and will not recur.
What remains is a structural imbalance - meaning the City's ongoing operating costs exceed its ongoing revenues, and there is no reserve left to bridge the gap. The primary cost drivers are not discretionary: they include mandatory pension contributions to CalPERS, workers' compensation and liability insurance premiums, and employee health benefits - all of which automatically increase each year regardless of budget decisions made at the local level.
The City is currently projecting a General Fund structural deficit of approximately $9.4 million in Fiscal Year 2026-27. To place that in context: the City's entire General Fund revenue base is approximately $71 million, with adopted expenditures at approximately $78.2 million. A $9.4 million shortfall represents roughly 13 percent of all General Fund revenues; a deficit of significant magnitude for a city of South Gate's size and budget structure.
What Closing This Deficit Actually Means
A balanced budget is legally required, and the City will produce one. But the public should understand what balancing the budget without new recurring revenue will require.
Cutting $9.4 million from a $78.2 million operating budget means eliminating more than one dollar out of every eight the City spends delivering services.
Because the General Fund finances the City's core municipal operations, addressing a deficit of this magnitude would likely require adjustments to staffing levels, service delivery, facility operations, and community programs. Based on the City's current budget projections, addressing a deficit of this magnitude through expenditure reductions alone could require adjustments including:
@ Reductions in Police Department staffing and services - including fewer officers available for patrol, longer response times to non-emergency calls, and reduced capacity for community policing and investigations;
* Closure or significantly reduced operating hours at City recreation centers, parks, and community facilities;
* Reduced public works maintenance, including street repair, graffiti abatement, and landscape maintenance in City parks and rights-of-way; @ Elimination or significant reduction of community programs, senior services, and youth progratnming;
* Substantial reductions in City staffing across multiple departments, affecting residents' day-to-day ability to access City services.
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These examples illustrate the types of service impacts that could occur if the structural deficit is addressed solely through expenditure reductions.
The Path Fonvard
The ACFR presented tonight accurately reports the City's financial activity through June 30, 2025 and confirms that the City met all financial obligations during that period. It is appropriately presented as a receive-and-file item.
However, the ACFR does not, and by design caru'iot, capture the fiscal pressures the City's General Fund now faces. The ACFR is a backward-looking accounting document prepared under accrual- based governrnental accounting standards. The fiscal pressures the City currently faces is a forward-looking policy reality that will be resolved through the FY 2026-27 budget process.
The City Council may consider policy options to address the structural deficit, including potential revenue measures, expenditure reductions, or a combination of both. The service and staffing adjustments described above represent the likely outcome absent new recurring revenue or other policy action.
Residents and stakeholders who review this ACFR should do so with full awareness that the City's audited financial position as of June 30, 2025 does not re:flect the difficult and consequential decisions that lie ahead in Fiscal Year 2026-27 and beyond.
BACKGROUND: The Annual Comprehensive Financial Report (ACFR) is the City's official audited financial report prepared in accordance with accounting standards established by the Governrnental Accounting Standards Board (GASB). The report includes the City's financial statements, notes, and statistical information regarding the City's financial condition.
The ACFR differs from the aru'iual budget. While the budget is a forward-looking policy document that establishes spending authority and service priorities, the ACFR reports the actual financial results of the prior fiscal year.
Key highlights of the City's financial performance are summarized in the Management's Discussion and Analysis (MD&A) section of the ACFR, which provides an overview of financial results, changes in fund balances, and economic factors affecting the City.
The City's Federal Single Audit, which evaluates compliance with federal grant requirements, will be presented to the City Council separately once finalized.
ATTACHMENT: Fiscal Year 2024-25 Annual Comprehensive Financial Report 332
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CITY OF SOUTH GATE
ANNUAL FINANCIAL COMPREHENSIVE REPORT
For Fiscal Year Ended June 30, 2025
Prepared by the Administrative Services Department
Luis Frausto
Administrative Services Director
Steven Aragon
Budget and Procurement Manager
Rick Pyles
Accounting and Finance Manager
Raul Rodriguez
Senior Financial
Analyst
Adrian Alcala
Accountant
Connie Delaney
Payroll and Budget
Analyst
Jessica Miranda-
Santana
Management Analyst
Harmony Trax
Financial Management
Analyst
Irma Martinez
Senior Customer
Service Representative
Belinda Martinez
Acting Senior Customer
Service Representative
Ruby Salamanca
Payroll Technician
Cynthia Lam
Intermediate
Accounting Clerk II
Claudia Godinez
Intermediate
Accounting Clerk I
Armando Quintero
Purchasing Clerk
Anita Velasquez
Customer Service
Representative
Ruby Muller
Customer Service
Representative
Ariana Clara
Administrative Services
Clerk
Mary Ramirez
Administrative Services
Clerk
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CITY OF SOUTH GATE
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
INTRODUCTORY SECTION
Table of Contents
Letter of Transmittal
Directory of Officials
Organization Chart
GFOA Certificate of Achievement for Excellence in
FINANCIAL SECTION
Independent Auditor's Report on the Financial Statements Management's Discussion and Analysis (Required Supplementary Information) Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-Wide Statement of Activities
Proprietary Fund Financial Statements:
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Net Position Statement of Cash Flows
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position.
Statement oT Changes in Fiduciary Net Position
Notes to the Basic Financial Statements
Required Supplementary Information:
Budgetary Comparison Schedules:
General Fund
Grants Special Revenue Fund..
Notes to the Budgetary Comparison Schedules.
Page
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CITY OF SOUTH GATE
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
FINANCIAL SECTION (Continued)
Table of Contents
Page
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Required Supplementary Information (Continued):
Schedule of Changes in Net Pension Liability and Related Ratios:
CalPERS Miscellaneous Plan
PARS - Supplemental Retirement Plan..
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios:
CalPERS Safety Plan ... . .. . .. . .. . . .. . . .. .. .. . . . .... . . 102 Schedule of Contributions:
CalPERS Miscellaneous Plan . .. . . .. . .. .. .. . .... .... . . . . . 104 CalPERS Safety Plan .. . . 106
PARS - Supplemental Retirement Plan.. . . ... . . .. . .. . .. .. . 108 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios........ 110 Schedule of Contributions - Other Postemployment Benefits Plan .. .. .. . . 112 Supplementary Information:
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Improvement Projects Fund
Nonmajor Governmental Funds:
Combining Balance Sheet . ..... . . . . . ... . ... . .. .. . . .. .. . . 121 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances................. 128 Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund Housing Authority Special Revenue Fund.
HOME Program Special Revenue Fund
Housing Successor Special Revenue Fund
Law Enforcement Grants Special Revenue Fund
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West Santa Ana Branch TOD SIP
Air Quality Improvement Special Revenue Fund..
TDA Bikeway Fund,
Gas Tax Special Revenue Fund
Street Sweeping Special Revenue Fund
Prop A Transit Special Revenue Fund.
Prop C Transit Special Revenue Fund
UDAG Special Revenue Fund
Public Access Corporation Special Revenue Fvrid
Street Lighting & Landscaping Special Revenue Fund Measure R Transit Special Revenue Fund
Road Repair & Accountability Act Special Revenue Fund Measure M Transit Special Revenue Fund
Park Enhancement Special Revenue Fund
CASp Special Revenue Fund
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CITY OF SOUTH GATE
Annual Comprehensive Ftnancial Report
For the Year Ended June 30, 2025
FINANCIAL SECTION (Continued)
Table of Contents
Page
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158
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Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Stormwater Special Revenue Fund
Used Oil Recycling Program Special Revenue Fund..
Beverage Container Recycling Program Special Revenue Fund.
Road Mitigation Program Special Revenue Fund
Housing Authority - Development Projects Special Revenue Fund Permanent Local Housing Allocation Grant
Emergency Housing Voucher Special Revenue Fund
Integrated Waste Management Fund,,
SB 2 Grant Special Revenue Fund
Leap Grant Special Revenue Fund
American Rescue Plan Act Fund
Internal Service Funds:
Combining Statement of Net Position.. ..... . .. . 168 Combining Statement of Revenues, Expenses, and Changes in Net Position.................... 170 Combining Statement of Cash Flows . . ... . . .. ... . . . .. . . ..... ., ,, , , I7; Custodial Funds:
Combining Statement of Fiduciary Net Position.
Statement of Changes in Fiduciary Net Position
ST ATISTICAL SECTION
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Statistical Section Overview
Net Position by Component..
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Governmental Activities Tax Revenues by Source..
Direct and Overlapping Property Tax Rates
Assessed Value of Taxable Property
Principal Property Taxpayers
Property Tax Levies and Collections.
Ratios of Outstanding Debt by Type
Direct and Overlapping Debt.
Legal Debt Margin Information
Pledged Revenue Coverage..
Demographic and Economic Statistics
Full-Time Equivalent City Employees by Function
Operating Indicators by Function.
Capital Asset Statistics by Function.
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Administrative Services Department
8650 Califorriia Avenue, South Gate, CA 90280
P: (323) 563-9574 F: (323) 569-2678
www.cityofsouthgate.org
City of
South
(,ate-
February 12, 2026
To the Honorable Mayor, Members of the City Council, and Citizens of the City of South Gate:
The Annual Comprehensive Financial Report (ACFR) of the City of South Gate for the fiscal year ended June 30, 2025, is hereby submitted. This report is prepared in accordance with Califomia Govenunent Code and local ordinance requirements, which mandate that the City issue, annually, a complete report of its financial position and activities and that it be audited by an independent firm of certified public accountants.
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a maru'ier that fairly presents the financial position and results of operations of the various funds and component units of the City of South Gate. To the best of our knowledge and belief, there are no rnisstatements of material fpct within the financial statements or omissions of material fact which would cause the financial statements to be misleading. All disclosures necessary to enable the reader to gain an understandmg of the City's financial activities have been included.
The financial section of the ACFR includes Management's Discussion and Analysis (MD&A) of the financial activity. Tis letter of transmittal is designed to complement the MD&A and should be read in conjunction. The City's MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.
The firiaricial reporting entity (the goverept) includes all the fiinds of the primary govemment (i.e., the City of South Gate, as legally defined), as well as its component units, the South Gate Utility Authority, the South Gate Housing Authority, and the South Gate Public Financing Authority. A component rinit is a legally separate entity for which the primary goverent is financially accountable.
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Independent Audit
The City requires an annual audit by independent certified public accountants. The accounting firm Davis Farr LLP conducted this year's audit. The auditors' report on the government-wide financial statements and the combining and individual fund statements and schedules is included in the financial section of this report. Davis Farr LLP, Certified Public Accountants, has issued an unmodified opinion on the City of South Gate's financial statements for the year ended June 30, 2025. The independent auditor's report is located at the front of the financial section of this report, As a recipient of federal financial assistance, the City is required to undergo an annual single audit in conformity with the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget (OMB) Uniform Guidance. For the year ended June 30, 2025, $19.1 million in federal financial assistance program funds were expended, exceeding the $750,000 threshold requiring a single audit. The results of the single audit are presented in a separately issued report.
SOUTH GATE PROFILE
The City of South Gate, incorporated on January 20, 1923, under the general laws of the State of California. South Gate encompasses 7.4 square miles and is in the heart of the Los Angeles Metropolitan area. The city is characterized by a high-density, working-class community with a population of 92,955 according to the State of California Department of Finance. Services provided by the City include administration, police, public works, planning, building & safety, and parks & recreation. The City of South Gate provides a fiill range of services for the citizens delivered by the City's own employees. The City has its own Police Department but contracts for fire services through the Los Angeles County Fire Department (LACFD), and contracts with other governmental entities or private companies for library and refuse collection.
Centrally located, South Gate is an ideal location for commerce within a 15-mile radius of downtown Los Angeles, Los Angeles International Airport, and the Ports of Los Angeles and Long Beach. The city is linked to these sites by several major transportation thoroughfares, including the I-710 (Long Beach) and I-105 (Century) freeways, Firestone and Alameda Boulevards, and an extensive rail system with services provided by the Union Pacific and Southem Pacific Railroads, With a diverse mix of residential, commercial, and industrial areas, the City has promoted itself as an area rich in economic opportunities and continues to have many projects slated for development that will play a significant role in revitalizing the community.
The City has operated under the council-manager form of government since incorporation. Policy- making and legislative authority are vested in the goveming City Council, which consists of five Council Members, including the Mayor and Vice-Mayor. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring the City Manager and the City Attorney. The City Council is elected on a non-partisan, at-large basis. Council Members are elected to four-year staggered temis with two or three Council Members elected every two years. Each year, the City Council selects the Mayor and Vice Mayor for a one-year term.
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The City Manager serves at the pleasure of the City Council, administers the City's affairs, oversees the day-to-day operations of the government, appoints depaitment heads, and carries out policies and ordinances established by the Council. The City provides the following municipal services:
Public Safety Public Works Community Services Administrative Police Services Street Maintenance Parks & Recreation City Manager Fire (Contract) Water Utility Community Development City Clerk FinanceCode Enforcement Sewer Utility Housing Programs Animal Control Refuse (Contract) Library (Contract) Human Resources Emergency Mgmt. Traffic Engineering
I Senior Services
Information
Technology
The annual budget serves as the foundation for the City's financial planning and control. Each year, all City departments are requ'ued to submit a request for appropriations to the City- Manager.
The City Manager uses these requests to develop a proposed budget and presents it to the Council for review by May 31. The Council is required to adopt a final budget no later than July 30. The City of South Gate maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions contained in the annually appropriated budgets approved by the City Council. The activities of the General Fund, Special Revenue funds, Capital Projects funds, Debt Service funds, and the Proprietary funds are included in the annual appropriated budgets of the government units. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level withineachfund. Formalbudgetaryintegrationisemployedasamanagementcontroldevice. The City also maintains an encumbrance accounting system as one method of maintaining budgetary control.
The Administrative Services Department is responsible for establishing and maintaining an appropriate internal control shucture. The internal control system is designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The intemal control stnicture is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) The valuation of costs and benefits requires estimates and judgments by management.
STRATEGIC POSITION AND ECONOMIC CONDITION
The City of Sorith Gate ended Fiscal Year 2024-25 with a $14.9 million increase in governmental activities net position and maintained positive overall fund balances. These results reflect continued fiscal discipline and the City's ability to meet its financial obligations, Atthe same time, management recognizes that the expiration of one-time American Y:sffie..Plan.ActllXARPA) 12,-
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fiinding requires a deliberate transition toward long-term stnictural balance. With those federal resources now largely expended, future bridgets must rely on sustainable, recurring revenues to suppoit ongoing service levels.
Accordingly, the City's strategic focus is centered on aligning recurring revemies with recurring expenditures. Management is advancing multi-year financial forecasting, strengthening expenditure controls, evaluating cost recovery for services, and assessing long-term revenue sustainability to ensure fiscal stability in the years ahead.
Local Economy
South Gate's economy continues to benefit from its strategic location within the Los Angeles metropolitan area, with convenient access to major freeways (I-710, I-105, and I-5) and proximity to the Ports of Los Angeles and Long Beach. The City's unemployment rate of 5.1% has remained stable. The local housingmarkethas remained resilient, with assessed valuations supporting steady property tax growth. Cotnrnercial and industrial activity, representing approximately 34% of the prop-ertytax-b-a-se,pro-v-ides economic diversification.- South Gate has transformed from its earlier industrial heritage into a diverse urban community.
The Azalea Regional Shopping Center, anchored by major retailers, continues to generate significant sales tax revenue. The City's location and transportation infrastnicture position it favorably for continued commercial activity and redevelopment opportunities.
Major Revenue Trends
The City's two largest own-source revenues, sales tax and properly tax, have shown divergent trends over the past decade. Sales tax revenue, historically the City's primary operating revenue source, comprising approximately 23% of governmental revenues, has experienced periodic volatility tied to regional economic conditions and shifts in consumer spending pattems. Property taxrevenue, the second-largest source at approximately 15% of governmental revenues, has grown more steadily, supported by incremental improvements in assessed valuations.
For FY 2025-26, sales tax revenue is projected to flatten while properly tax is expected to increase modestly by O.6%. The City continues to monitor revenue trends and evaluate opportunities to diversify and stabilize its revenue base.
Capital Assets and Infrastructure
The City continues to make strategic investments in its infrastructure and public facilities to support long-term service delivery and community needs. During fiscal year 2024-25, capital outlays totaled approximately $31.4 million, significantly exceeding annual depreciation expense and resulting in a net increase in capital assets. As of June 30, 2025, total capital assets, net of accumulated depreciation, were approximately $352 million.
Capital activity during the year included improvements to streets and transporiation'infrashucture, water and sewer system upgrades, facility improvements, and public s@fety,jelated inVp.stments. 341
These projects were funded primarily through restricted revenues, grants, enterprise fiinds, and prior-year carryovers rather than discretionary General Fund resources.
Maintaining and modemizing infrastructure remains a central priority. While current investments strengthen the City's asset base and service capacity, long-term sustainability will depend on continued identification of reliable funding sources to address ongoing capital replacement needs and mitigate deferred maintenance risk. Additional information on capital assets is presented in Note 6 to the financial statements.
Long-Term Financial Planning
Management maintains a forward-looking approach to fiscal sustainability. The City has established and maintained prudent financial policies, including General Fund reserve poiicies requiring emergency reserves and budget stabilization funds. As of June 30, 2025, the General Fund reported a committed fund balance of $13.0 million for emergency reserves, $6.O million for budget stabilization, and $1.7 million for OPEB obligations.
The City continues to address its long-term pension and other postemployment benefit (OPEB) obligations through consistent fundin-g of actuarially determined contributions. The tra5ectory of these obligations, combined with other fixed costs, underscores the importance of maintaining adequate reserves and evaluating long-term revenue strategies.
AWARD AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada (GFOA) administers a prestigious national award program that recognizes conformance to the highest standards of report preparation. To be awarded a Certificate of Achievement, a governrnent unit must publish an easily readable, well-organized Annual Comprehensive Financial Report (ACFR).
This report must satisfy both Generally Accepted Accorinting Principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. The City of South Gate strives to achieve this prestigious award each year. The City of South Gate submitted its ACFR for the fiscal year ended June 30, 2024, and was awarded the GFOA award of Certificate of Achievement for Excellence in Financial Reporting. I believe our current ACFR continues to meet the Certificate of Achievement program's requirements, and I am submitting it to the GFOA for eligibility consideration for another certificate.
The preparation of this report is a team effort involving many dedicated people across the entire organization. We would like to express our appreciation to the talented finance professionals throrighout the City, led by Luis Fraristo, Director of Administrative Services. Appreciation is also expressed to Davis Farr LLP, the City's independent auditors, for their expertise, guidance, assistance, and professionalism in preparing this year's report. Finally, we would like to express our sincere thanks to the City Council for its support in maintaining the highest standards of professionalism in managing the City of South Gate's finances. l'i"l'
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Respectfully submitted,
City Manager r o Administrative Services
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CITY OF SOUTH GATE
ELECTED AND ADMINISTRATIVE OFFICIALS
Mayor
Vice Mayor
Councilmember
Councilmember
Councilmember
City Clerk
Ciff Treasurer
City Manager
City Attorney
Assistant City Manager/Director of Public Works
Police Chief
Director of Administrative Services
Director of Community Development
Acting Director of Parks & Recreation
Joshua Barron
Al Rios
Maria del Pilar Avalos
Maria Davila
Gil Hurtado
Yodit Glaze
Jose De La Paz
Rob Houston
Raul Salinas
Arturo Cervantes
Manuel Arana
Luis Frausto
Gabriel Perez
Tina De La Rosa
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CITY OF SOUTH GATE
CITIZENS OF SOUTH
GATE
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CITY CLERK
(Elected)
(Elected) CITYTREASURER
(Elected)
CITY ATTORNEY
(Appointed)
CITY MANAGER
(Appointed)
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HUMAN ADMINISTRATIVE PARKS& COMMUNITY
RESOURCES SERVICES RECREATION DEVELOPMENT poucE PUBLIC WORKS 114
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South Gate
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
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Executive Director/CEO
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Davis Farr LLP
18201 Von Karn'ian Avenue l Suite 11001 Irvine, CA 92612 Main: 949.474.2020l Fcix: 949.263.5520
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and
Members of the City Council
of the City of South Gate
South Gate, California
Report on the Audit of the Financial Statements
Opinions
as of and for the year June 30, 2025, 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 present fairly, in all material respects, the respective financial position of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof For the year then ended in accordance with accounting principles generally accepted in the United States or America. gas/s 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 GovernmentAuditing Standards, issued by the Comptroller General of the United States. 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.
Emphasis of Matter
The financial statements for the year ended June 30, 2025 reflect a prior period adjustment as described further in Notes 1 and 17 due to the implementation of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for one year after the date that the financial statements are issued.
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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 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 performirig an audit in accordance with GAA.S, we:
* Exercise professicrial judgrrierit and maintairi professiona! skepticism throughout the audit. ii 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 oT 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.
ii 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, the pension and OPEB schedules, and the budgetary comparison schedules identified as Required Supplementary Information (RSI) in the accompanying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted ofinquiries 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.
2 '2-0
348
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and Other records used tO prepare the baSiC financial statements Or tO the baSiC financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 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 GovernmentAuditing Standards, we have also issued our report dated February 12, 2026 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 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.
Irvine, California
February 12, 2026
3 21
349
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Overview of the Financial Statements
This Management's Discussion and Analysis (MD&A) presents management's narrative interpretation of the City of South Gate's financial performance and condition for the fiscal year ended June 30, 2025. It is intended to complement, not duplicate, the accompanying basic financial statements and should be read in conjunction with those statements and the related notes.
The City's financial statements are presented from two complementary perspectives. The government-wide financial statements provide a long-term, economic view of the City as a whole using the accrual basis of accounting. T hese statements report all assets, deferred outflows of resources, liabilities, and deferred inflows, including capital ASSETS and long-term obligations such as pensions, other postemployment benefits (OPEB), leases, and bonded debt.
The fund financial statements focus on the City's near-term financial position and results of operations using the modified accrual basis of accounting. These statements emphasize fiscal accountability by reporting balances of spendable resources and demonstrating compliance with the legally adopted budget.
Together, these perspectives illustrate both the City's annual operating results and its longer-term fiscal commitments.
Fiscal Snapshot: Fiscal Year 2024-25
While the City"s government-wide net position increased by 516.2 million during FY 2024-25 and total fund balances remained positive, these headline figures do not fully reflect the City's long-term operating dynamics. The increase in government-wide net position primarily reflects accounting recognition of capital assets, restricted resources, and other non-operating factors, rather than changes in discretionary General Fund operating capacity.
The General Fund, which suppods core municipal services such as public safety, parks, and general government, has experienced a recurring pattern in which ongoing expenditures have exceeded ongoing revenues in recent fiscal years, resulting in the planned use of one-time resources and fund balance as part of adopted budgets. In recent fiscal years, this gap was addressed through the use of one-time resources, most notably approximately S18 million in federal American Rescue Plan Act (ARPA) funding, along with interfund transfers and planned use of fund balance.
As ARPA resources have been largely expended, future budgets will increasingly require policy decisions regarding service levels, expenditure controls, and the identification of sustainable recurring revenues. These conditions represent a long-term operating and policy consideration rather than a liquidity or solvency issue. Management does not believe the City will have difficulty meeting its financial obligations as they come due.
The discussion that follows presents the City's financial results in accordance with generally accepted accounting principles, beginning with the government-wide perspective and then focusing on individual funds, including the General Fund.
4 22.
350
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Financial Highlights
Government-wide Financial Statements
* Net Position: The total assets and deferred outflows of the City of South Gate exceeded total liabilities and deferred inflows at the close of the fiscal year ended June 30, 2025, by S324.1 million. This amount is referred to as the City's net position and is driven primarily by capital assets and legally restricted resources rather than discretionary operating funds. Of this amount, S328.7M is invested in capital assets, 543.7M is restricted for public works, housing activities, community development projects, public safety and debt service, and S48.4M is an unrestricted deficit amount.
* Changes in Net Position: The City"s net position increased by S16.2M year over year (from !>307.9M prior fiscal year ending balance, which included a -578k prior period adjustment, to S324.1M balance at June 30, 2025). Governmental Activities increased by S14.8M while Business-type activities increased by !>1.3M in net position.
Long-Term Debt: The City's total long-term liabilities decreased from S195.8M to S193.8M year over year as of June 30, 2025, a net decrease of S2.OM. The net decrease was mainly from a S2.5M decreasein net pension liability, a S1.8M decrease in revenue bond debt, and a S1.6M decrease in pension obligation bond debt. * Capital AssetS: The City's capital assets totaled 5352M on June 30, 2025, a net increase of S23.5M over the prior year balance of S328.5M. The net increase consists of an increase in Governmental activities of !>21.5M while Business-type activities contributed S1.9M.
* Federal American Rescue Plan Act (ARPA) funds continued to materially support General Fund operations during FY 2024-25. Over the past several fiscal years, more than S18 million in one-time federal relief was used to offset ongoing operating costs, ARPA temporarily offsetting ongoing operating costs that otherwise would have required policy adjustments in the General Fund. * Capital investment remained significant, particularly in streets, water, facilities, and infrastructure, and was funded primarily through restricted revenues, grants, enterprise funds, and prior-year carryovers rather than discretionary General Fund resources.
Fund Financial Statements
At June 30, 2025, total governmental fund balances decreased from the prior year, primarily due to capital outlay expenditures and the timing of grant reimbursements.
General Fund: As of June 30, 2025, expenditures and transfers-out exceeded revenues and transfers-in by SO.SM, decreasing the fund balance from S37.6M to 537.1M. Of the !>37.1M fund balance, S9.4M is unassigned and is available for future appropriations at the City's discretion.
The General Fund reported a total fund balance that included:
* Committed reserves of S13.0 million for emergencies, * Budget stabilization reserves of S6.0 million,
* An OPEB trust commitment of S1.7 million
5 23
351
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Governmental Funds: As of June 30, 2025, the City's governmental funds reported a cornbined ending fund balance of !>67.6M, a decrease of 54.2M (5.9%) over the prior year's fund balance.
While total governmental fund balances remained substantial, a significant portion of these balances is restricted, committed, or temporarily unavailable due to legal constraints or reimbursement timing. Several special revenue and capital project funds reported deficit balances at year-end, reflecting expenditures incurred in advance of revenue receipt rather than structural shortfalls. Management actively monitors these funds to ensure liquidity, compliance, and timely reimbursement.
Change in Accounting Principle - GASB Statement No. 101 During FY 2024-25, the City implemented GASB Statement No. 101, Compensated Absences, which refines the criteria for when leave balances are recognized as liabilities. Implementation resulted in a prior-period adjustment to beginning net position to reflect the cumulative effect of the accounting change.
This adjustment had no impact on cash balances, fund balances, or operating results and represents a presentation change intended to improve consistency and transparency in financial reporting.
Using the Accompanying Financial Statements
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City of South Gate as a whole and present a longer-term view of the City's finances. Also included in the accompanying reports are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of others outside of the government.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This Annual Comprehensive Financial Report also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements: The government-wide financial statements are designed to provide readers with a broad overview of the City of South Gate's finances, in a manner similar to a private-sector business.
The statement of net position presents information on aft of the City of South Gate's assets (including deferred outflows of resources) and liabilities (including deferred inflows of resources), with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of South Gate is improving or deteriorating.
The statement of activities presents information on how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only resultin cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
6 ,,2!
352
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Bath statements include not only the City of South Gate itself (known as the primary government} but also the SouthGate Utility Authority, the South Gate Housing Authority and the South Gate Public Financing Authority, for whichthe City of South Gate is financially accountable. Financial information on these component units is reportedseparately from the financial information presented for the primary government itself.
After the dissolution of the South Gate Community Development Commission (Redevelopment Agency), the City ofSouth Gate elected to become the Successor Agency for the former Community Development Commission and theremaining assets and activities of the dissolved redevelopment agency were reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
Fund financial statements: A fund is a grouping of related accounts that is used to maintain control over resourcesthat haVe been Segregated far SpeCifiC aCtiVitieS Or ObjeCtiVeS. The City Of SOuth Gate, like Other State and 10Calgovernments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.All th e FUNDS Of the City Of SOuth Gate Can be diVided intO three categories: governmental fUndS, proprietary FUNDSand fiduciary funds. * Governmental funds. Most of the City's basic services are reported in governmental funds, which focus on howmoney flows in and out of those funds and the balances left at year end that are available for spending. These funds are reported using the modified accrual basis of accounting, which measures cash and all other currentfinancial assets that can readily be converted to cash. The governmental fund statements provide a detailedshort-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 thenear future to finance the City's programs. The relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are describedin the reconciliation at the bottom of the fund financial statements. * Proprietary funds. When the City charges customers for the services it provides - whether to outside customersor to other units of the City - these services are generally reported in proprietary funds. Proprietary funds arereported in the same way that all activities are reported in the Statement of Net Position and the Statement ofActivities. In fact, the City's enterprise funds (a component of proprietary funds) are the same as the business-type activities reported in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. Internal service funds (the other component of proprietary funds) areused to report activities that provide supplies and services for the City's other programs and activities. * Fiduciary funds. The City of South Gate is an agent for certain assets held for, and under the control of, otherorganizations and individuals. All of the City's fiduciary activities are reported in a separate Statement of Fiduciary Assets. These activities are excluded from the other financial statements because the City cannot use these assetsto finance its operations. The City is responsible for ensuring that the assets reported in these funds are used fortheir intended purposes.
Notes to the basic financial statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on page 42 immediately following the basic financial statements.
Other information: In addition to the basic financial statements and accompanying notes, this Annual Comprehensive Financial Report also presents certain required supplementary jnforrruation, providing budgetary comparison schedules for budgeted versus actual revenues and expenditure of the City's major funds.
The combining statements referred to earlier in connection with the non-major governmental funds and internal service funds are presented immediately following the required supplementary information on budget comparisons, 7 25
353
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 3-0, 2025
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. For the City of South Gate, assets and deferred outflows of resources exceed liabilities and deferred inflows of resources by !>324.1M on June 30, 2025, as shown in Table 1.
Current and other assets
Capital assets
Total assets
De Outflows
Total Defermd Oidflows
Long-temi debt outgtamh'y
OtharNabW €ss
Tobd liabiltUes
De Inflows
Total DeTerred Inflows
Table I
Statement of Net Positions
Govemmentai
Activies
Business-Type
Activities Total
2025 2024 2025 2024 2025 2024
$ 122,48g,183 $ 132,515,357
293,675,005 272,148,157
416,164,188 404,663,514
37,876,808
37,876,BOB
454,973,778
29,368,859
184,342,837
12,970,648
12,970,648
50,325,712
50,325,712
153,084,185
42,183,808
195,267,971
17,839,289
17,839,289
$ 48,483,Ol'l
58,345,880
104,808,691
3,215,930
3,2al5,930
30,743,131
B,6!58,298
39,399,429
1244,660
1,244,660
$ 49,515,701 $ 188,952,194 $ i82,03i,05El
56,404,430 352,020,885 328,552,587
105,920;131 520,972,879 510,583,645
3,370,804
3,370,804
41,092,738
41 ,092,738
30,818,377
10,934,914
41,753,291
185,7"l6,909
38,025157
223,7 42,086
1,488,892
1,488,892
14,215,308
14,215,308
53,898,518
53,898,518
183,902,542
53,118,720
237,021,262
19,328,181
19,328,181
Net posnin:
Invested }n net capital asseti
Restricted
Unrestricted (deficit)
Total net position
292,377,240
43,786,379
(79,435,908)
$258,727,71'l
zzo,gta,zet
55,333,OG15
(84,387,390)
$ 241,881,968
36,399,999
30,980,533
$67,380,532
32,890,324
33,358,428
$66,048,752
:u8,777,239
43,786,379
(48,455,375)
$324,108,243
303,808,585
55r333i095
(51,008,982)
$307,930,718
The largest portion of the City's net position reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment) of S352M, less any related debt used to acquire those assets that are still outstanding. The City of South Gate uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its 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. Another portion ofthe City's net position, S43.8M, represents resources that are subject to external restrictions on how they may be used. The remaining Unrestricted Net Position (deficit) balance of S48.4M is 52.5M less than it was in the prior year. (Intentionally left blank)
8 2(/
354
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Revenues
Program revenues:
Charges for services
Operating grants & contributioi'is
Capnal grants & contributions
General revenues:
Property taxes
Sales taxes
Other taxes
Investment income
O!her revenues
Total revenues
Program*xpensea
General govemrnent
Publm works
Parks & ra,rmtion
Polm
Community dewlopment
Interegt expense
8emr
Water
Rduse
Total mpensas
Revenues over (under)
expenditures
Transfers
Changas in Net Position
Beginning ngt position, regtahd
Ending net positmn, restatad
Table2
Statement ofChangm in Net Position
Governrrieirtal
Activities
Business-type
AdMt= Total
2025
$ 9,848,13t
35,218,428
17,385,994
18,485,79
27,329,948
5,744,309
3,699,121
2,701,162
120,412,872
19,a59,283
22,363,765
12,357,4!ffi
38,[644
15,754;110
4l3ffi5
106,!)17,315
2024 2025
$ 9,85 €),922 $ 22,719,664
30,181 248
13,078,783
17,497,330
28,409,477
6,089,703
4,700,589
1,930,26 €1
111,744,298
16,413,199
22,g52,722
12,021,277
36,406,461
13,292,018
521,688
101,607,365
1,804,833
24!t24,!$97
2,401,560
19,010,988
352,?74
21,764,822
2024 2025
$ 20,649,328
260,898
2,201,865
23,112,091
1781,022
15,023,964
574,598
ty,szg,su
$ 32,567,795
35,218,428
17,385,994
18,485,779
27,329,948
5,744,309
5,504,054
2,701,j62
144,!)37,469
19,05t3,293
22,363,765
12,357,488
as,gas,as
15,754,20
413,845
2,401,580
tg,oio;sss
Q4
IB,Jiff
2024
$ 30,508,250
30,442;T46
13,078,763
17,497,330
28,409,477
6,089,703
6,902,454
1,930,266
134,856,389
16,413,199
22,952,722
12,021 2??
36,406,461
13,292,018
521,688
i,781,022
15,023,964
574,598
118,986Q
13,495,557 10,13el,933 2,759,775 5,732,507 16,255,332 15,869,440 i,4114
14Jff,m
241,820,328
$24727,711
1,3'l!J,642
11,456,!!75
230,425,391
$241,[1,Me
(1,411,826) (1,319,642)
1,347,M9 4,412,865 16,255,332
66,032,583 61,635,887 307,852,911
$67,380,532 166,048,752 $324,108,243
1!%869,440
292,061,278
$307,930,718
Governmental Activities: Governmental activities are primarily supported by property tax, sales and use tax, intergovernmental revenues, and charges for services.
During FY 2024-25, governmental revenues increased modestly, driven largely by growth in assessed valuation and locally generated sales tax. These gains were partially offset by volatility in economically sensitive revenues and the continued expiration of one-time funding sources.
Governmental expenditures continued to rise, reflecting escalating CalPERS unfunded actuarial accrued liability (UAL) payments, higher health, workers" compensation, and general liabilityinsurance costs, inflationary pressure on labor, materials, and contracted services, and ongoing subsidy requirements for certain special revenue and internal service funds.
9 27
355
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year-Ended June 30, 2025
As a result, expenditure growth continued to outpace recurring revenue growth, increasing long-term budgetary pressure within the General Fund and reducing flexibility in future budget development.
As shown in Table 2, the City's net position for its governmental activities increased by S14.9M as of June 30, 2025.
Program revenues increased by !>9.3M this fiscal year mainly from an increase in capital grants received. General revenues decreased S667K this year mainly due to decreases in sales taxes and investmentincorne. Program expenses increased by S5.3M from !>101.6M in FY 2024 to S106.9M in FY 2025, primarily from general government, police and community development activities.
The City of South Gate relies heavily on federal, state, and local grant funds (44%) as a major funding source for capital projects and eligible operating costs. After grants, sales tax (23%1 property taxes (15%) and charges for services (8%) remain the most significant sources of the Governmental Activities revenue stream.
Revenues by Source - Governmental Activities
Capita[ Grants &
Contnbutions Other Revenues
Rroperty Taxes
15%
Operating Grants
& Cordnbutiorm
2gaA Charges For
Sernce!3i
Other Taxes
5%
(nvealmen! income
3%
SalesTaes
23%
8%
The cost of all governmental activities this year was 5106.9M compared to 5101.6M in the prior year. Governmental activities generated sufficient revenues to pay these costs with S9.8M paid for by those who directly benefited from programs provided, 552.6M being subsidized by grants received from other governmental organizations for both capital and operating activities, and S57.9M coming from general taxes, investment income, and ottier revenues. (Intentionafly left blank)
10 356
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Expenses and Program Revenues - Governmental Activities eAn
ICf) ""
c
a $as:2
$30
$25
$20
$i 5
$10 -
$5 -
$-
(il"k.-'a
I
I?;"" )Act
m Expenses
OProgram Revenues
(>;:.l
V:7.a,"j):1"1.. i
;
i'l;f'))l'.;',;
:;i--,:i.a'.,,'i
( '-,:i: r
..itlJ ..-14:l l- _a
! . 14"
ia'a-i'
( l,!l II.
i't.:1, ,
'11 i_i_ l
i4, 7, I
d;,i:a,%)
r(. '%'.'
I
:
:
E"'::.M"a I
p"l+'( ' -=
i+.+.l
akR'-i "
*
Si#a
Ci-':'i
P,a-' -j
!,,l';.\u
"" - '
W,,'kA:l;5ik:Y '
7'h _ _ . fJ 'aA 4 '
av)At _ ; -,
" .%'lo "'a 0 %
ffq at -l"
a.{ $i;!, >. ;" l:
"'.T;@.4,A s [
' X' ; S
i sl a,.
a rl .
iy'i '
%+l' :j;: :'l
."aif::l
a;'5Y ';'i
: 'Aa") ' L'
_y')..=' :,,
a, > - i
,K. 0 _
].?
. - ,l A . i.
1. 'm l!1=ii
t
I
!
0]a
t:F,%%:_l.l:L:il_l%l;:4J.}a.ll:IJI;rlll,ill,,1.11:
T;,! i-:(a
!U(II)!i
liJ.a'u.ii Th =
Gereral
Government Potice Public Works Comriunity
Development
Par!<s &
Recreation
Interest
expense
0 Expenses $19,059,293 $36,968,644 $22,363,765 $15,754,270 $12,357,498 $41 3,845 BProgram Revenues $11,775,169 $3,499,7 45 $35,098,570 $10,012,660 $2,066,409 $- The City's largest expense is its Police Department, where operations totaled S36.9M in FY 2024/25. General Government followed with 519M of expenses. Public Works was the second largest in expenses, at S22.3M, which included several large capital improvement projects. (Intentionally left blank)
11 ,!ol
357
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Business-Type Activities. As of June 30, 2025, the financial condition of the City's business-type activities was a positive net position of S67.3, a S1.3M increase from 566.OM beginning net position. The increase in net position is mainly attributed to an increase in Sales and service charges of S1.3M.
The City's business-type activities consisted mainly of the water and sewer utilities and refuse collection and disposal have been contracted out. The combined cost of providing all business-type activities this year was 521.7M. The revenue paid by users of these utilities was S22.7M, of which 89.3% comes from water fees, 10.2% from sewer fees and O.5% from refuse. When capital improvements are made, the costs are capitalized, and no expenses are incurred, given that current assets have been converted to long-term capital assets.
The water utility user rates are set to generate some excess of revenues over expenses in an effort to maintain a reasonable reserve for capital improvements and debt service requirements. A sewer rate study is underway to ensure that the sewer utility is similarly sustained financially to cover its operating and capital requirement costs. The city contracts out the refuse collection and disposal, and the user rates are set to cover the contractual costs and related administration costs.
Revenues by Source - Business-Type Activities
Sewer
I O.2%
Refuse
05'%
Water
RQ 3%
12 2o
358
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Expenses and Program Revenues - Business-Type Activities m Expenses
oProgram Revenues
_m
al,e%"ai"':'l-:J'(ox"ly,"'a'l";,(slFy'a'(;,,)yalt'7""':':ao':=',:1,1""i"' I==:=fi=':
g:==J=,'-':
,"0 'at} ' a% A= i : A.)I-'n ,}
:%7a:.. i_t!
-l- : - li 101
A.....' a-j<ti'A j- - , ,
Wcter Sewer Refuse
E) Expenses $19,010,988 $2,401560 $352,274
OProgram Revenues $20,290,003 $2,320,826 $108,835
Financial Analysis of the City's Funds
As noted earlier, the City of South Gate uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.
Governmental Funds: The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements and near-term fiscal flexibility.
As of June 30, 2025, the City's Bovernmental funds reported ending fund balances of !>67.6M, a decrease of S4.2M (5.9%) from the prior year. Of that amount, 92.OM is a nonspendable fund balance. Of the remaining S65.6M spendable fund balance, S43.6M is restricted because it is subject to external enforceable legal obligations, S20.7M iS committed far SuCh THINGS aS an emergency reSerVej a budget StabiliZatiOn fund, and an OPEB SeCtiOn 115 trust, and S5.5M has been assigned by management for specific purposes such as capital projects. The remaining balance reflects deficit positions in certain funds, primarily the Grants Special Revenue Fund as discussed below.
While total fund balances appear substantial, the majority is restricted or committed and unavailable for discretionary use. The City's true near-term fiscai flexibility is limited to unassigned balances, which reside primarily in the General Fund.
13 31
359
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
General Fund: The General Fund is the chief operating fund of the City of South Gate. As of June 30, 2025, the total General Fund balance was S37.1M, a slight decrease of !>575K from the prior year. The unassigned fund balance tota!ed S9.4M, a decrease of S288K from the prior year.
For FY 2024/25, General Fund revenues decreased by !>323K (0.5%) over the prior year from S66.9M to 566.6M, while operating expenditures decreased by S1.6M from 566.1M to S64.5M. Revenues exceeded expenditures by approximately S2.1M; however, net transfers to other funds resulted in the S575K reduction in fund balance.
Grants Special Revenue Fund: The Grants Special Revenue Fund is used to account for all federa!, state, and local grants not specified in other funds. As of June 30, 2025, the fund balance had a deficit of S12.9M, of which S11.3M represents unavailable revenue that has been earned but does not yet meet modified accrual availability criteria. This deficit is technical rather than structural-amounts will be recognized as grant reimbursements are received.
Capital Improvement Projects Fund: The Capital Improvement Projects Fund accounts for most of the capital improvement activityin the City, such as buildings and streetinfrastructure. Capital expenditures are charmed directly to this fund and reimbursed with transfers from otherfunds as monies are received from the various funding sources, primarily grants. As of June 30, 2025, the total fund balance was S848K.
Other Nonmajor Governmental Funds: The other nonmajor governmental funds' fund balance totaled !>42.7M as of June 30, 2025. These funds include several special revenue funds used exclusively to account for intergovernmental and assessment proceeds which are restricted by law as to their use. This group of funds includes the Community Development Block Grant, HOME Program, Housing Successor, Gas Tax, Asset Forfeiture, Prop A and C Local Returns, Measure R, Measure M, Street Lighting & Landscaping, and various other grant funds.
In March 2021, Congress passed the S1.9 trillion American Rescue Plan Act of 2021. The City's allocable share amounted to S34.5M, received in two installments: S17.25M in June 2021 and S17.25M in July 2022. ARPA funds may be used to recover revenue losses due to the pandemic, fund infrastructure projects including water, sewer, and broadband, and respond to public health emergencies including assistance to households, small businesses, and nonprofit organizations. For FY 2024-25, the City continued to expend its ARPA funds, which are now largely exhausted. The deadline for full expenditure is December 2026. As noted throughout this MD&A, the exhaustion of these one-time funds is a key factor affecting future General Fund budgeting and long-term policy decisions.
Proprietary Funds: The City"s proprietary funds consist of the Water, Sewer, and Refuse Funds, which are the business-type activities that account for the operation of those utilities. Also included are the internal service funds, which provide support far goverrirriental activities including insurarice activities, information systems, fleet management, capital asset & equipment replacement, and building & infrastructure maintenance. tn business-type activities, the Water and Sewer Funds are considered major funds. The Refuse Fund is considered non-major. At the fiscal year end, the combined net position of these funds totaled S67.3M, An increase of S1.3M or 2.0% from the beginningfund balance of S66M. Additionally, resources used forthe construction ofcapital facilities do not result in expenses because the assets are capitalized.
The internal service funds include Insurance Fund, Information Systems Fund, Fleet Management Fund, Capital Asset & Equipment Replacement Fund and Building Maintenance Fund. The internal services funds account for goods and services provided by one City department to other City departments. The net position decreased by S123K from S3.5M beginning fund balance to S3.3M as ofJune 30, 2025, largely due to an increase of accumulated depreciation. 14 32
360
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
General Fund Budgetary Highlights
The General Fund is the City's primary operating fund and supports core municipal services, including public safety, parks and recreation, public works, community development, and administrative services.
At June 30, 2025, the General Fund reported a positive unassigned fund balance. While this reflects prudent short- term cash management, it does not represent a structurally balanced operating position.
Key General Fund observations include:
* Recurring revenues were insufficient to fully cover recurring expenditures, requiring the use of ARPA funding, interfund transfers, and planned fund balance.
Public safety remained the dominant cost driver, accounting for more than half of total General Fund expenditures.
Pension and insurance costs continued to grow at rates exceeding revenue growth, reducing budgetary flexibility and increasing reliance on one-time solutions.
With ARPA funds now largely expended, future General Fund budgets will require policy decisions regarding expenditure levels, service priorities, and recurring revenue alignment. The General Fund's year-end unassigned balance provideslimited fiscal cushion relative to the City's expenditure base and underscores the need for deliberate structural solutions. As one-time, non-recurring resources, ARPA funds cannot be relied upon to support ongoing operations beyond the near term.
For FY 2024/25, the final adopted General Fund revenue budget was S68.7M. Actual revenues came in at S66.6M, approximately S2.1M (3.2%) below budget, primarily due to sales tax coming in !>622K below projections and other taxes S249K below budget. Property tax exceeded budget by S346K, and Use of Money and Property exceeded budget by S724K, partially offsetting the sales tax shortfall. Charges for Services increased by S326K, mainly due to an increase in recreational activities, and Licenses and Permits were up by !>29.5K.
Total actual expenditures for the General Fund were S64.5M, which was S4.1M (6.0%) below the adopted budget of 568.6M. The main factor for the decrease in expenditure was largely due to staff vacancies. This operating surplus reflects vacancy savings, one-time resources, and timing differences rather than a structurally balanced revenue base.
While operating REVENUES exceeded operating expenditures by approximately S2M, after accounting for transfers to other funds, the General Fund balance decreased by S575K-from S37.6M to S37.1M. This outcome reflects the continued use of General Fund resources to support other City operations and underscores the structural pressures discussed above.
Capital Asset and Debt Administration
Capital Assets: The capital assets of the City are assets used in the performance of City functions including infrastructureassets. CapitalAssetsincludeequipment,buildings,land,parkfacilitiesandroads.AsofJune30,2025, the City's net investment in capital assets for governmental activities totaled S293.6M and net investment in capital assets for business-type activities totaled S58.3M. Governmental capital assets had a net increase of S21.4M mainly due to S28M increase in Structures and improvements. Business-type capital assets had a net increase of S1.9M including an increase of S3.3M in the utility distribution system. 15 361
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Capital activity during FY 2024-25 was funded primarily through restricted revenues, grants, enterprise funds, and prior-year carryovers. The General Fund contribution to capital remained limited, reflecting constrained discretionary capacity.
While this approach preserves General Fund liquidity in the short term, it also highlights long-term risks associated with deferred maintenance and aging infrastructure if sustainable funding sources are not identified.
City of South Gate Capital Assets
(Net of depreciation)
Govemniental
Activities
2025 2024
Business-Type
Activities
2025 2024 2025
Total
2024
Structures and irriprovements $ 42,557,223
Machinery and equipment 5278,728
Infrastructure 222,5'l6,545
Utility distribution system
l,l(d 4,997,485
Cnns%ruction in pmgress 17,460,348
Leaseassgts 864,676
Water rights
Total $293,675,005
$ 14,503,609
4,3:F),035
209,997,310
4,W,485
37,082,158
1,281,562
J178,1%
$ jJ),4&1,84
1,445,083
40,475,546
-[290,602
2,737,381
1,933,144
ffll341680
$10,845,558 $ 53,02i,i47 $ 25,349,167
1,493,678 6,723,8'11 5,829,713
222,516,545 209,F)97,310
37,127,588 40,475,546 37,127,588
1290,602 6,288,087 6,288,087
3,712,766 20;197,729 40,T745)24
864,676 1,281,562
1933,144 1,933,144 1,933,144
$56,403,336 $ 352,020,685 $ 328,581,495
Additional information on the City's capital assets can be found in Note 6 of the Notes to the Basic Financial Statements of this report.
Long-Term Liabilities. The City's long-term liabilities are driven predominantly by pension obligations. Although the City has consistently made its actuarially determined contributions, rising UAL payments continue to consume a growing share of General Fund resources.
Other long-term obligations include compensated absences and claims liabilities, particularly within the City"s self- insurance programs. The trajectory of these liabilities emphasizes the importance of maintaining adequate reserves, pursuing cost containment where feasible, and evaluating long-term revenue strategies to support fixed cost growth.
At the end of the fiscal year, the City of South Gate had total long-term liabilities of S193.8M, a decrease of approximately S2.OM over the prior year's balance. The net change is a combination of an increase in claims and judgements liability of S3.9M along with a decrease in revenue and pension obligation bonds of S3.4M. Changes in long-term liabilities are mainly due to the paydown ofthe City's outstanding revenue bond, pension obligation bonds and other financing agreements.
16 362
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
Revenue bords
Pensin obligation bonds
Financing agreements
Lease Payabki
tkmns payabki
Ckiumi and jidgmenbi
Compensated Absenom
Other pad-employment ber
Ngl pension fiabHtty
Total
City of South Gate Long-Term Liabilities
Govemmantal
AdMtim
Business-Type
Adivitiea
2025 2024 2025 2024
5,440,000 7,070,000
30,453 10B,816
352,33t 353,189
400,047 771,894
17,633,124 13,679,436
5,952,318 , 5,866,i62
27,574294 27,629,649
103,716,514 107,583,858
$ 161,Ogtl,081 $163,061,001
$ 23,640,829 $ 25,465,179
428,035
3,108,733
5,557,537
$32,735,134
3:31,538
2,727,244
4,255,447
$32,779,408
Totai
2025
$ 23,640,829
5,440,000
30,453
352,331
400,047
17,633,124
6,380,353
30,683,027
109,274,051
$1S)3,834,215
$ 25,465,179
7,070,000
106,816
353,189
771,89j
13,679,436
6,197,700
30,356,893
111,839,305
$lg5,840,409
Additional information on the City's long-term liabilities can be found in Note 7 of the Notes to the Basic Financial Statements of this report.
Economic Factors and Next Year's Budget
The City adopted a legally balanced budget for FY 2024-25; however, actual results diverged from the underlying objective of long-term sustainability.
While certain revenues exceeded conservative estimates, these favorable variances were largely absorbed by cost increases in pensions, insurance, and inflation-driven operating expenses. Budgetary compliance was maintained throughout the year, but reliance on one-time resources reduced financial flexibility entering FY 2025-26. This distinction between technical balance and structural balance remains a central consideration for fiscal decision- making.
FY 2025-26 represents a transition year and a policy inflection point for the City. With one-time federal relief largely exhausted, the City must increasingly rely on recurring revenues and reserves to sustain service levels.
While assessed valuation growth and local sales tax provide a degree of revenue stability, these sources are insufficient on their own to offset the City's fixed cost trajectory. Absent corrective action, projected structural General Fund gaps are expected to persistin the near term.
Management is therefore focused on long-term financial planning initiatives, including multi-year forecasting, cost recovery analysis, expenditure controls, service prioritization, and evaluation of revenue modernization options to restore structural balance over time.
In considering what is ahead for Fiscal Year 2025/26:
* Property tax revenue for FY 2025/26 is projected to increase by S116K or O.6% to S18.6M, reflecting an incremental improvement in property values as assessed in calendar year 2024. South Gate's housing market has remained stable due to its urban location. This is the City's second largest source of revenue, which is comprised of 66% residential and 34% industrial and commercial properties. 17 ,35
363
City of South Gate
Management's Discussion and Analysis (Unaudited)
Year Ended June 30, 2025
* Sales Tax revenue is the City's primary source of operating revenue and is projected to show a flattening of sales tax revenues in FY 2025/26. This represents an increase of S1.OM or 3.6% to 29.1M. * In addition, a large part of the overall operating budget comes from the City's share of pension costs. South Gate is one of many cities facing significant increases in retiree pension and health care costs. Future salary increases and increased CalPERS pension costs are expected to continue to place a strain on the budget over the next few years.
* The FY 2025/26 Citywide adopted operating and capital improvement budget consisted of approximately 5235Fv'l. Ti his includes all City furids, including General fund and Other Governmental funds, Water fund, Sewer fund, Housing Authority fund, Successor Agency fund Grants and Other Subventions, Special Assessment District funds, and Capital Improvement Project funds. * Overall, the General Fund revenues are projected at !>70.9M and represent a net increase of O.4% from the prior year's estimates.
While there have been steady improvements across all areas of the community, there is still more work to be done to ensure the City remains on solid financial ground in the years to come.
Conclusion
The City of South Gate concluded FY 2024-25 in compliance with all financial and legal requirements and continued to provide essential municipal services. At the same time, the financial results illustrate the policy and budgetary challenges associated with the sunset of one-time resources.
This MD&A is intended to candidly present those realities, provide context for the City's current financial position, and support informed decision-making by the City Council, residents, creditors, and other stakeholders.
Requests for Information
This Annual Comprehensive Financial Report (ACFR) is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City's finances and to show the City's transparency and accountability for the money it receives and expends. If you have questions about this report or need additional financial information, please contact City Administrative Services/Finance, by phone at (323) 563-9522, or by mail at 8650 California Avenue, South Gate, California 90280.
18 364
BASIC FINANCIAL ST ATEMENTS
365
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366
GOVERNMENT WIDE FINANCIAL STATEMENTS
367
City of South Gate
Statement of Net Position
June 30, 2025
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Internal balances
Due from other governments
Inventories
Property held for resale
Total current assets
Noncurrent assets:
Restricted cash and investments with fiscal agent Leases receivable
Notes and loans receivables
Capital assets:
Non-depreciable capital assets
Depreciable capital assets, net
Total capital assets
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding of debt
Deferred outflows of resources related to pensions Deferred outflows of resources related to OPEB
Total deferred outflows of resources
Governmental
Activities
Primary Government
Business-Type
Activities
$ 82,915,546 $ 41,119,169
2 ,114,980
3 92,794
(1,810)
22,733,444
188,897
4,950,000
4,238,203
187,022
1,810
113,293,851 45,546,204
619,583
431,198
8,144,551
22,457,833
271,217,172
293,675,005
302,870,337
416,164,188
28,741,072
9,135,736
37,876,808
916,807
5,961,127
52,384,553
58 ,345,680
59 ,262,487
104,808,691
778,341
1,413,517
1,024,072
3,215,930
Total
$124,034,715
6,353,183
579,816
22,733,444
188,897
4,950,000
158,840,055
1,536,390
431,198
8,144,551
28,418,960
323,601,725
352,020,685
362,132,824
520,972,879
778,341
30,154,589
10459,808
41,092,738
See accompanying Notes to 5!5,e Basic Financial Statements. !O
368
City of South Gate
Statement of Net Position (Continued)
June 30, 2025
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Retention payable
Accrued interest
Unearned revenue
Deposits payable
Compensated absences - due within one year
Claims payable - due within one year
Long-term debt - due within one year
Total other postemployment benefits liability -
due within one year
Total current liabilities
Noncurrent liabilities:
Compensated absences - due in more than one year
Claims payable - due in more than one year
Long-term debt - due in more than one year
Aggregate net pension liability
Total other postemployment benefits liability -
due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted :
Community development projects
Asset forfeiture program
Law enforcement
Public works
Low/mod income housing activities
Total restricted
Unrestricted (deficit)
Total net position
Governmenta
Activities
11,523,556
2,178,787
2,011,797
24,435
5,633,869
1 ,870,814
502,111
2,234,729
2,221,910
1,166,851
29,368,859
5,450,507
15,398,394
4,000,920
103,716,514
26,407,443
154,973,778
184,342,637
387,107
2,755,475
9,828,066
12,970,648
292,377,240
17,423,933
17,020
3,177,452
19,582,074
3 ,585,900
4 3,786,379
(79,435,908)
$256,727,711
Primary Government
Business-Type
Activities
1,662,194
223,064
177,714
4,601,323
36,103
1,858,949
131,551
8,690,898
391,932
21,781,880
5,557,537
2 ,977,182
3 0,708,531
39,399,429
130,551
1,114,109
1,244,660
36,399,999
30,980,533
$ 67,380,532
Total
13,185,750
2,178,787
2,234,861
202,149
5 ,633,869
6,472137
538,214
2,234,729
4,080,859
1,298,402
38,059,757
5,842,439
15,398,394
25,782,800
109,274,051
29,384,625
185,682,309
223,742,066
387,107
2,886,026
10,942,175
14,215,308
328,777,239
17,423,933
17,020
3,177,452
19,582,074
3 ,585,900
4 3,786,379
(48,455,375)
$324,108,243
See accompanying Notes to 55,e Basic Financial Statements. q(
369
City of South Gate
Statement of Activities
For the Year Ended June 30, 2025
Functions/Programs
Primary government:
Governmental activities:
General government
Police
Community development
Parks & recreation
Poblic wcrks
Interest on long-term debt
Total governmental activities
Business-type activities:
Water
Sewer
Refuse
Total business-type activities
Total primary government
Expenses
$ 19,059,293
36,968,644
15,754,270
12,357,498
22,363,765
413,845
106,917,315
19,010,988
2 ,401,560
3 52,274
21,764,822
$128,682,137
Program Revenues
Charges for
Services
$ 1,439,176
1 ,971,387
10,751
2,066,409
4,360,408
9,848,131
20,290,003
2,320,826
108,835
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Total
Program
Revenues
$10,335,993 $
1,528,358
io,ooi,gog
13,352,168
35,218,428
17,385,994
$11,775,169
3,499,745
10,012,660
2,066,409
3 5,098,570
17,385,994 62,452,553
20,290,003
2,320,826
108,835
22,719,664 - 22,719,664
$ 32,567,795 $ 35,218,428 $ 17,385,994 $ 85,172,217
See accompanying Notes to Ihe Basic Financial Statements. t4
370
City of South Gate
Statement of Activities (Continued)
For the Year Ended June 30, 2025
Functions/Programs
Primary government:
Governmental activities:
General government
Police
Community development
Parks & recreation
Public works
Interest on long-term debt
Total governmental activities
Business-type activities:
Water
Sewer
Refuse
Total business-type activities
Total primary government
General revenues
Taxes :
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Other taxes
Total taxes
Intergovernmental revenue, unrestricted
Use of money and property
Other
Transfers
Total general revenues and transfers
Changes in net position
Net Position:
Beginning of year, previously reported
Change in accounting principle (GASB 101)
Beginning of year, as restated
End of year
Net (Expense) Revenue
and Changes in Net Position
Primary Government
Governmental
Activities
Business-Type
Activities Total
$ (7,284,124) $
(33,468,899)
(5,741,610)
(10,291,089)
12,734,805
(413,845)
(44,464,762)
(44,464,762)
18,485,779
607,448
27,329,948
3,359,776
1 ,398,257
2 32,622
51,413,830
146,206
3,699,121
2,701,162
1,411,826
59,372,145
14,907,383
$ (7,284,124)
(33,468,899)
(5,7 41,610)
(10,291,089)
12,734,805
(413,845)
(44,464,762)
1,279,015
(80,734)
(243,439)
954,842
954,842
1,279,015
(80,734)
(243,439)
954,842
(43,509,920)
1,804,933
18,485,779
607,448
27,329,948
3,359,776
1 ,398,257
2 32,622
51,413,830
146,206
5,504,054
2,701,162
(1,411,826)
393,107 59,765,252
1,347,949 16,255,332
241,881,966 66,048,752 307,930,718
(61,638) (16,169) (77,807)
241,820,328 66,032,583 307,852,911
$ 256,727,711 $ 67,380,532 $ 324,108,243
See accompanying Notes to lhe Basic Financial Statements. z5
371
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Liu
372
FUND FINANCIAL STATEMENTS
'15
373
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L/ &
374
GOVERNMENTAL FUND
FINANCIAL ST ATEMENTS
General Fund - The General Fund accounts for resources traditionally associated with government which are not legally required, or determined by sound financial management, to be accounted for in another fund.
Grants Special Revenue Fund - This fund is used to account for all Federal, State, and local grants not specified in other funds.
Capital Improvement Projects Fund - This fund accounts for various capital projects funded by grants, other governmental entities or designated by the City Council. 9 %1
375
ASSETS
Cash and investments
Restricted cash and investments
held by fiscal agent
Receivables:
Accounts
Notes and loans
Accrued interest
Leases
Due from other governments
Due from other funds
Inventories
Property held for resale
Advances to other funds
Total assets
City of South Gate
Balance Sheet
Governmental Funds
lune 30, 2025
Major Funds
Genera
Fund
Capital Nonmajor Total
Grants Special Improvement Governmental Governmental Revenue Fund Projects Fund Funds Funds
$ 13,317,769 $ $ 10,265,044 $ 38,667,942 $ 62,250,755 323,374 296,209 619,583
1,707,944 - 15,000 385,608 2,108,552
58,267 247,303 - 7,838,981 8A44,551
123,042 - - 214,988 338,030
431,198 431,198
6,106,777 14,740,955 1,807,951 22,655,683
18,671,322 - 18,671,322
188,897 - 188,897
4,950,000 4,950,000
1,813,000 - 1,813,000
$ 42,741,590 $ 14,988,258 $ 10,576,253 $ 53,865,470 $ 122,171,571
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Unearned revenue
Deposits
Retentions payable
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Leases related
Unavailable revenues
Total deferred inflows
of resources
Fund Balances:
Nonspendable:
Inventories
Notes and loans
Advances to other funds
Restricted :
Community development projects
Asset forfeiture program
Law enforcement
Public works
Low/mod income housing
Committed:
Emergency reserve
Budget stabilization
OPEB section 115 trust
Assigned :
Public works
Capital projects
Unassigned (deflcit)
Total fund balances
Total liabilities, deferred
I 1,423,537 $
2,167,611
1,588,407
2,508
15,970,698
5,182,063 16,575,213
$ 7,459,442 $ 2,142,255 $ 11,025,289
2,956 2,170,567
5,029,409 5,633,869
259,353 23,054 1,870,814
2,009,289 - 2,011,797
2,085,238 18,055,936
1,813,000 1,813,000
9,728,084 11,095,912 42,581,272
387,107
117,545 11,322,833
387,107
89,229 11,529,607
504 652 11,322,833 Q 89 229 11,916,714
188,897
58,267
1,813,000
13,000,000
6,000,000
1,730,0 €)0
115,000
4,737,023
9,412,688
37,054,875
247,303
(13,157,091)
(12,909,788)
17,176,630
17,020
3,177,452
19,464,529
3,585,900
848,169
(741,202)
848,169 42,680,329
188,897
58,267
1,813,000
17,423,933
17,020
3,177,452
19,464,529
3,585,900
13,000,000
6,000,000
1,730,000
115,000
5,585,192
(4,485,605)
67,673,585
inflows of resources
and fund balances I 42,741,590 4 14,988,258 $ 10,576,253 $ 53,865,470 $ 122,171,571 See accompanying Notes to St3e Basic Financial Statements. u<7
376
City of South Gate
Reconciliatron of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 67,673,585 Amounts reported for governmental activities in the Statement of Net Position were different because:
Capital assets used in governmental activities were not financial resources and therefore were not reported in governmental funds.
Government-Wide Financial Statements
Less: capital assets reported in Internal Service Funds Total capital assets adjustment
Long-term debt are not due and payable in the current period and, therefore, are not reported in the governmental fund activity:
Pension Obligation Bonds
Notes payable
Leases payable
Subscription payable
Compensated absences
Total long-term debt adjustment
Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.
293,675,005
(4,510,603)
289,164,402
(5,363,637)
(106,816)
(175,163)
(171,693)
(5,832,132)
(11,649,441)
(22,936)
Governmental funds report all pension contributions as expenditures; however, in the statement of net position, the excess of the total pension liability over the plan fiduciary net position is reported as a net pension liability:
Deferred outflows of resources related to pensions Aggregate net pension liabilities
Deferred inflows of resources related to pensions
Governmental funds report all OPEB contributions as expenditures; however, in the statement of net position, total OPEB liability is reported as a total OPEB liability:
Deferred outflows of resources related to OPEB
Other postemployment benefits liabilities
Deferred inflows of resources related to OPEB
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 28,252,847
(101,796,951)
(2,710,385)
8,765,627
(26,447,887)
(9,423,401)
11,529,607
Internal service funds were used by management to charge the costs of certain activities to individual funds.
The assets and liabilities of the internal service funds were included in governmental activities in the Government Wide Statement of Net Position. 3,392,644
Net Position of Governmental Activities $ 256,727,711 See accompanying Notes to !,tle Basic Financial Statements. t lOi
377
City of South Gate
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Formerly
Major Funds Major Fund
General
Fund
Capital American Nonmajor Total
Grants Special Improvement Rescue Plan Governmental Governmental Revenue Fund Projects Fund Fund Funds Funds
REVENUES:
Taxes
Licenses and permits
Intergovernmenta
Charges for services
Use of money and property
Fines and forfeitures
Rental income
Miscellaneous
Total revenues
$ 51,413,830
1,622,067
704,94B
3,505,358
1,521,048
1 ,568,859
2 37,849
6,017,090
66,591,049
17,385,995
- $ 2,003,582 $ 53,417,412
12,024 1,634,091
- 35,385,641 53,476,584
- 1,136,241 4,641,599
- 1,991,327 3,512,375
1,568,859
237,849
10,304 6,027,394
40,539,119 124,516,163
EXPENDITURES:
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service :
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITuRES
OTHER FINANCING SOuRCES (USES):
Issuance of leases
Transfers in
Transfers out
Total other financing sources (uses)
8,580,905
30,121,331
4,634,837
12,774,084
6,247,695
1,729,582
384,882
64,473,316
891
- 29,932,605
891 29,932,605
2,117,733 17,385,104 (29,932,605)
56,857 -
2,636,253 1,132,029 31,103,840
(5,386,334) (21,087,493) (2,284,596)
(2,693,224) (19,955,464) 28,819,244
CHANGES IN FUND BALANCES (575,491) (2,570,360) (1,113,361) 9,312,400 17,893,305
1,249,444 31,370,775
10,578,699 15,214,427
33,622 12,807,706
10,647,388 16,895,083
632,117 30,564,722
224,069 1,953,651
9,280 394162
32,687,019 127,093,831
7,852,100 (2,577,668)
100,824 157,681
2,602,988 37,475,110
(10,527,982) (39,286,405)
(7,824,170) (1,653,614)
27,930 (4,231,282)
FUND BALANCES:
Beginning of year, as previously presented 37,630,366 (10,339,428) 1,961,530 913,192 41,739,207 71,904,867 Change within financial reporting entity
(majortononmajor) (913,192) 913,192
Beginning ofyear, as adjusted 37,630,366 (10,339,428) 1,961,530 - 42,652,399 71,904,867 End of year $ 37,054,875 $ (12,909,788) $ 848,169 $ - $ 42,680,329 $ 67,673,585 See accompanying Notes to !!)'>e Basic Financial Statements. 378
City of South Gate
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wade Statement of Activities For the Year Ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds $ (41231,282) Amounts reported for governmental activities in the Statement of Activities were different because :
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlay
Depreciation
Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.
Principal paid on long-term debt
Issuance of leases
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources: therefore, are not reported as expenditures in governmental funds.
Pension expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
Other postemployment benefits expenses reported in the statement of activities do not require the use of current financial resources; therefore, are not reported as expenditures in the governmental funds.
Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are not included in the intergovernmental revenues in the governmental fund activity.
Internal service funds are used by management to charge the costs of certain activities, such as fleet management and self-insurance, to individual funds. The net revenues (expenses) of the internal service funds is reported with governmental activities.
Change in Net Position of Governmental Activities
31,382,754
(9,744,406)
21,638,348
1,953,651
(157,681)
6,361
(28,604)
(3,786,254)
361,926
(725,955)
(123,127)
$ 14,907,383
See accompanying Notes to !ib,e Basic Financial Statements. 379
PROPRIETARY FUND
FINANCIAL STATEMENTS
ENTERPRISE FUNDS:
Utility Authority Water Fund - This fund accounts for the operations of the City's water utility. All activities necessary to provide this service are accounted for in this fund including administration, operations, maintenance, capital improvements, billing, collections and depreciation.
Utility Authority - Sewer Fund - This fund accounts for the provision of sewer maintenance services to the residents of the City. All activities necessary to provide this service are accounted for in this fund including, but not iimited to, administration, operations, rriaintenance, capital improvements, biiiing, collections and depreciation.
Refuse Fund (Non-Major) - This fund accounts for the provision oT waste management services to the residents of the City. All activities necessary to provide this service are accounted for in this fund including, but not limited to, administration, operations, maintenance, capital improvements, billing, collections and depreciation.
INTERNAL SERVICE FUNDS: (Refer to page 166 for more details) 380
This page intentionally left blank.
63 381
ASSETS
Current assets:
Cash and investments
Receivables:
Accou nts
Accrued interest
Due from other funds
Total current assets
Noncurrent assets:
Restricted assets:
Cash and investments
Capital assets:
Non-depreciable assets
Depreciable assets, net
Total capital assets, net
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding of debt
Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Total deferred outflows of resources
City of South Gate
Statement of Net Position
Proprietary Funds
June 30, 2025
Business-type Activities
Enterprise Funds
lVla3or Nonma3or
Water Sewer Refuse
$ 40,277,634 $
3,454,924
178,666
1,810
43,913,034
916,807
4,043,168
38,557,883
42 ,601,051
43 ,517,858
87,430,892
673,267
1 ,193,325
866,557
2,733,149
63,087 $ 77B,44B
677,278 106,001
4,027 4,329
744,392 888,778
1,917,959
13,804,039
15,721,998
15 ,721,998
16 ,466,390
-105,074
188,441
157,515
451,030
22,631
22,631
22,631
911,409
31,751
Total
Governmental
Activities
Internal
Service Funds
$ 41,119,169 $ 20,664,791
4,238,203
187,022
1,810
45,546,204
916,807
5,961,127
52,384,553
58 ,345,680
59 ,262,487
104,808,691
778,341
1,413,517
1,024,072
3,215,930
6,428
54 764
20,725,983
4,510,603
4,510,603
4,510,603
25,236,586
488,225
370,109
858,334
See accompanying Notes to See Basic Financial Statements. 382
City of South Gate
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
LIABILITIES
Liabilities:
Current liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Deposits payable
Retentions payable
Due to other funds
Compensated absences, due within one year
Claims and judgments, due within one year
Long term debt, due within one year
Total OPEB liability, due withln one year
Total current liabilities
Noncurrent liabilities:
Compensated absences, due in more than one year
Claims and judgments, due in more than one year
Long term debt, due in more than one year
Aggregate net pension liability
Total OPEB liability, due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Business-type Activities
Enterprise Funds
Major Nonmajor
Water Sewer Refuse Total
1,054,922 600,331 6,941 1,662,194
177,714
4,601,323
223,064
31,131
1,612,662
112,000
7,812,816
4,972
246,287
19,551
871,141
337,938 53,994
18,836,658
4,691,809
2,534,706
26,401,111
34,213,927
110,210
954,021
1,064,231
2,945,222
774,524
442,476
4 ,216,216
5,087,357
12,779
160,088
172,867
177,714
- 4,601,323
223,064
36,103
- 1,858,949
131,551
6,941 8,690,898
391,932
- 21,781,880
91,204 5,557,537
2,977,182
91,204 30,708,531
98,145 39,399,429
7,562 130,551
- 1,114,109
7,562 1,244,660
Governmental
Activities
Interna
Service Funds
498,267
9,71C)
539,435
10,163
2,234,729
253,412
47,665
3,593,390
110,323
15,398,394
152,109
1,919,563
1,078,742
18,659,131
22,252,521
45,090
404,665
449 755
23,741,805 12,635,563 22,631 36,399,999 4,105,082
31,144,078 (978,367) 814,822 30,980,533 (712,438)
$ 54,885,883 $11,657,196 $ 837,453 $ 67,380,532 $ 3,392,644 See accompanying Notes to See Basic Financial Statements. 383
City of South Gate
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
OPERATING REVENUES:
Sales and service charges
Interdepartmental charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personnel services
Utilities
Contractual services
Administrative services
Repairs and maintenance
Supplies
Insurance
Claims expense
Depreciation and amortization expense
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES):
Investment income (loss)
Interest expense and fiscal charges
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS:
Transfers in
Transfers out
Total transfers
Business-type Activities
Enterprise Funds
Major Nonmajor
Water Sewer Refuse Total
Governmental
Activities
Internal
Service Funds
$19,182,652 $ 2,317,121 $ 108,835 $21,608,608 $ -
13,299,564
1 ,107,351 3,705 - 1,111,056
2 0,290,003 2,320,826 108,835 22,719,664 13,299,564 5,423,820
1,008,244
5,147,725
3,396,273
722,281
411,532
2,254,696
18,364,571
1,925,432
1,715,429
(646,417)
1 ,069,012
2,994,444
(1,398,859)
(1,398,859)
1 ,088,213
1,493
2 36,833
281,004
133,574
29,335
9,289
102,758
229,817
6,638
6,521,322
1,009,737
5,487,316
3,907,094
862,493
4 40,867
2,042,202
14,582
558,087
441,384
732,405
847,359
6,210,611
5,434,557
823,419528,584
2i299,036
3,772
352,274
2,787,052
21,015,881 17,104,606
21,790 (243,439) 1,703,783 (3,805,042)
44,914
(102,524)
(57,610)
(35,820)
44,590 1,804,933
(748,941)
44,590 1,055,992
484,844
(26,044)
458,800
(198,849) 2,759,775 (3,346,242)
3,234,898
(12,967) (1,411,826) (11,783)
(12,967) (1,411,826) 3,223,115
CHANGESINNETPOSITION 1,595,585 (35,820) (211,816) 1,347,949 (123,127) NET POSITION:
Beginning of year, as previously reported 53,3071798 11,691,635 1,049,319 66,048,752 3,535,824 Change in accounting principle (GASB 101) (17,500) 1,381 (50) (16,169) (20,053) Beginning of year, as restated 53,290,298 11,693,016 1,049,269 66,032,583 3,515,771 End of year $ 54,885,883 $11,657,196 $ 837,453 $ 67,380,532 $ 3,392,644 See accompanying Notes to !;14e Basic Financial Statements. 384
City of South Gate
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-type Activities
Enterprise Funds
Major Nonmajor
Water Sewer Refuse Total
Governmental
Activities
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTMnES:
Cash received from customers and users
Cash received from interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net cash provided by (used in) operating activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTMTIES:
Acquisition and construction of capital ASSETS
Principal paid for capital-related debt
Interest paid on capital-related debt
Net cash (used in) capital and
related financing activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACnVInES:
Cash received from other funds
Cash paid to other funds
Net cash provided by (used in)
noncapital financing activities
CASH FLOWS FROM INVESTING ACT'MTIES:
Investment income
Net cash provided by (used in) investing activities
Net change in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION TO STATEMENT OF
NET POSITION:
Cash and investments
Restricted cash and investments
Total cash and cash equivalents
$19,673,750 $2,071,150 $ 2,834 $21,747,734 $
13,295,435
(9,637,474) (97,758) (150,726) (9,885,958) (10,231,963) (7,657,283) (932,136) (240,383) (8,829,802) (1,953,512) 2,378,993 1,041,256 (388,275) 3,031,974 1,109,960
(3,359,787) (1,619,595)
(1,518,075) (236,925)
(651,218) (101,635)
(5,529,080) (1,958,155)
(4,979,382)
(1,755,000)
(752,853)
(688,975)
(245,072)
(28,639)
(7,487,235) (962,686)
(1,398,859)
(1,398,859)
1,817,926
1,817,926
(2,731,020)
49,669
49,669
(867,230)
3,428,987
(12,967) (1,411,826) (11,783)
(12,967) (1,411,826) 3,417,204
47,931 1,915,526 503,531
47,931 1,915,526 503,531
(353,311) (3,951,561) 4,068,009
43,925,461 930,317 1,131,759 45,987,537 $16,596,782 $ 41,194,441 $ 63,087 $ 778,448 $ 42,035,976 $ 20,664,791 $ 40,277,634 $
916,807
$ 41,194,441 $
63,087 $ 778,448 $ 41,119,169 $ 20,664,791
916,807
63,087 $ 778,448 $ 42,035,976 $ 20,664,791
See accompanying Notes to See Basic Financial Statements. 385
City of South Gate
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
Business-type Activities
Enterprise Funds
Major Nonmajor
Water Sewer Refuse
RECONCILIAnON OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTMTIES:
$ 1%)25,432 $ 21,790 $ (243,439) $ 1,703,783 $ (3,805,041)Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governments
(Increase) decrease in due from other funds
(Increase) decrease in deferred outflows of
resources related to pensions
(Increase) decrease in deferred outflows of
resources related to other postemployment benefits
Increase decrease in accounts payable
Increase decrease in accrued liabilities
Increase decrease in deposits payable
Increase decrease in claims and judgments
Increase decrease in compensated absences
Increase decrease in net pension liability
Increase decrease in net OPEB liability
Increase decrease in deferred inflows of
resources related to pensions
Increase (decrease) in deferred inflows of
resources related to other postemployment benefits
Total adjustments
Net cash provided by (used in) operating activities $ 2,254,696
(719,337)
65,154
3 97
528,584
(249,676)
92,512 (19,766)
45,203
(2,348,089)
(38,750)
303,477
37,930
57,791
1 ,009,572
214,612
24,605
291,491
166,877
(197,616) (27,607)
(59,264)
453,561
2,378,993
40,231
1,019,466
$ 1,041,256
3,772
(106,001)
(261)
(41,330)
(2,067)
1,027
24 (144,836)
$ (388,275)
Total
2,787,052
(1,075,014)
65,154
397
72,485
6,453
(2,085,942)
37,930
80,329
1,302,090
381,489
(225,199)
Governmental
Activities
Internal
Service Funds
823,419
(4,130)
80 443
23,561
(207,324)
(2,345)
3,953,687
(3,786)
291,072
81,424
(91,048)
(+g,o:ia)
1,328,191
$ 3,031,974 $
(29,972)
4,915,001
1,109,960
There were no non-cash capital, financing, or investing transactions for the fiscal year ended June 30, 2025.
See accompanying Notes to jt5e Basic Financial Statements. 386
FIDUCIARY FUND
FINANCIAL ST ATEMENTS
Custodial Funds - These funds are used to report Fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private purpose trust funds.
Successor Agency to the Community Development Commission Private Purpose Trust Fund - This fund accounts for the assets and liabilities of the former Community Development Commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Community Development Commission (Redevelopment Agency) are paid in full and assets have been liquidated.
41 5q
387
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388
ASSETS
Cash and investments
Account receivables
Interest receivable
Due from other governments
Property held for resale
Capital assets:
Non-depreciable
Depreciable, net
Total assets
LIABILITIES
Accounts payable
Due to other governments
Total liabilities
NET POSITION
Held for:
City of South Gate
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Custodial
Funds
$ 1,120,945
77 1,121,074
744
744
Successor
Agency of the
Former
Community
Development
Commission
$ 1,397,620
12,374
112
205,000
1 ,686,000
2 7,048
3 ,328,154
6,449
186,760
193,209
Individuals, organizations, and other governments $ 1,120,330 $ 3,134,945 See accompanying Notes to Xl'3e Basic Financial Statements. ([1
389
City of South Gate
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
ADDITIONS:
Redevelopment property tax trust fund
Membership assessment
Use of money and property
Total additions
DEDUCTIONS:
Operational expense
Administrative services
Depreciation expense '
Interest expense and fiscal charges
Total deductions
Changes in Net Position
NET POSITION:
Beginning of year
End of year
Custodial
Funds
115,361
468
115,829
151,690
151,690
(35,861)
1,156,191
$ 1,120,330
Successor
Agency of the
Former
Community
Development
Commission
$ 315,500
98,245
413,745
36,889
19,089
49,896
105,874
307,871
2,827,074
$ 3,134,945
See accompanying Notes to t,he Basic Financial Statements. 44 390
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies
The basic financial statements of the City have been prepared in conformity with Generally ACcept:ed ACCOunting Principles (GAAP) aS applied kO government On!kS. 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. Description of the Reporting Entity
The City of South Gate (the 'City") was incorporated January 20, 1923, under the general laws of the state of California and enjoys all the rights and privileges pertaining to such "General Law" cities. The City is a municipal corporation governed by an elected five- member council.
As required by generally accepted accounting principles, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The following blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with the data of the City. They are reported as blended for the following reasons:
(1) the governing board is substantively the same as the primary government and there is a financial benefit or burden relationship between the primary government and the component unit; (2) the component unit provides services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to it; and (3) the component unit's total debt outstanding, including leases, is expected to be repaid entirely or almost entirely with the resources of the primary government. A brief description of each component unit is discussed below.
Blended Component Units
Blended component units, although legally separate entities, are, in substance part of the government's operation and so data from these units are combined with data of the primary government. Discretely presents component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government.
The City Council acts as the governing body and is able to impose its will on the following organizations and establishing financial accountability. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is either able to impose its will on that organization, or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent upon the City (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). As a result, these organizations are considered component units of the City and are included within the financial statements or the City using the blended method. All component units have a June 30 year-end.
45 391
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summarv of Siqnificant Accountinq Policies (Continuedi The South Gate Utility Authority ("Utility Authority") is a joint powers authority that was established by the City on August 28, 2001. The Utility Authority is governed by a board of five members comprised of the same individuals who comprise the City Council of the City. The Utility Authority was created for the purpose of providing financing for public capital improvements for the City. Separate financial statements are not prepared for the Utility Authority.
The Housing Authority of the City of South Gate ("Housing Authority) was established on September 23, 1974, pursuant to the State of California Health and Safety Code 34200 entitled, "Housing Authorities Law." The Housing Authority is governed by a board of five members comprised of the same individuals who comprise the City Council of the City. The purpose of the Housing Authority of the City of South Gate is to provide safe and sanitary dwelling accommodations in the City to persons of low income. Separate financial statements are not prepared for the Housing Authority.
The South Gate Public Financing Authority ("Financing Authority") was formed on September 11, 1989. The purpose of the South Gate Public Financing Authority is to issue debt to finance public improvements and other capital purchases for the City. The Public Financing Authority is governed by a board of five members comprised of the same individuals who comprise the City Council of the City. Separate t'inancial statements are not available for the Financing Authority.
The following specific criteria were used in determining the status of these component units:
Members of the City Council also act as the governing body of the Utility Authority, the Housing Authority, and the Financing Authority.
The City, the Utility Authority, the Housing Authority, and the Financing Authority are financially interdependent.
The Utility Authority, the Housing Authority, and the Financing Authority are managed by employees of the City, who provide various support functions including financial reporting and investment decisions.
B. Measurement Focus, Basis of Accounting and Financial Statement Presentation The City's basic financial statements are prepare6 in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Government Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
Government-Wide Financial Statements
The Statement of Net Position and the Statement of Activities display information about the primary government. These statements include the financial activities of the overall City government, except for fiduciary activities.
46 /== €4
392
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) Eliminations have been made to minimize the double counting of internal service fund andsimilar activities. The effect of inter-fund services provided and used between functions is not eliminated in the process of consolidation. These statements distinguish between thegovernmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other no exchange transactions. Business-type activities are financed in whole or in part by fees charged toexternal parties.
The government-wide financial statements are reported using the "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 or Net Position. The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities or the City and for each Function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by theprograms, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted tofinancing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Certainindirect costs are included in program expenses reported for individual functions and activities.
Fund Financial Statements
Separate financial statements are provided
fiduciary funds, even though the latter are
statements. Major individual governmental
fund financial statements.
Governmental Fund Financial Statements
for governmental funds, proprietary funds and
excluded from the government-wide financial
funds are reported as separate columns in the
Governmental fund financial statements are reported using the "current financial resources" measurement focus and the modified accrual basis of accounting. Revenues arerecognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues tO be available if they are COlleCted Within 60 DADS Of the end Of the current FiSCal period,with the exception of grants, for which the revenue recognition period is 120 days.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related tocompensated absences and claims and judgments, are recorded only when payment is due. 47 393
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the \ear Ended June 30, 2025
Summary of Siqnificant Accountinq Policies (Continued) Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
The City reports the following major governmental funds:
* General Fund - The General Fund accounts for resources traditionally associated with government which are not legally required or by sound financial management to be accounted for in another fund.
Grants Special Revenue Fund - This fund is used to account for all Federal, State, and local grants not specified in other funds.
Capital Improvement Projects Fund - This fund accounts for various capital projects from resources committed by the City Council.
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 each proprietary fund.
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. These funds have been established to finance and account for goods and services provided by one City department to other City departments or agencies. These areas of service include Insurance, Information Systems, Fleet Management, Capital Asset & Equipment Replacement, and Building & Infrastructure Maintenance.
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 present increases (reveriues) and decreases (expenses) in total 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 is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Proprietary fund operating revenues and expenses, such as charges for services, and payments to employees and vendors, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues and expenses, such as subsidies, investment earnings, changes in fair value of investments and interest charges result from non-exchange transactions or ancillary activities. 48 (,(,p
394
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
Summary of Siqnificant Accountinq Policies (Continued) The concept of major funds extends to Proprietary Funds. The City has identified the funds below as major proprietary funds. Individual non-major funds may be found in the supplemental section.
Utility Authority - Water Fund - This fund accounts for the operations of the City's water utility. All activities necessary to provide this service are accounted for in this Fund including administration, operations, maintenance, capital improvements, billing, collection and depreciation.
Utility Authority - Sewer Fund - This fund accounts for the provision of sewer maintenance services to the residents of the City. All activities necessary to provide this service are accounted for in this fund including, but not limited to, operations, maintenance, capital improvements and depreciation.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's Fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting.
The City also reports the following fiduciary Funds:
Custodial Funds - These funds account for resources held by the City in custodian capacity. Cash and deposits are maintained for activities associated with various associations and third-party projects. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
Private-purpose Trust Fund - This fund accounts for the assets and liabilities of the former Community Development Commission and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.
C, Cash Investments and Cash Equivalents
In order to maximize investment return, the City pools its available cash for investment purposes. The City's cash management pool is used essentially as a demand deposit account by the various funds. The City has defined, for purposes of the preparation oF its statements of cash flows, cash and cash equiva!ents as demand deposits plus all investments maintained in its cash management pool, regardless of maturity period.
Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. 49 &7
395
CITY OF SOUTH GATE
NOteS tO the BaStC F!nanc!al Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) The City pools cash and investments of all funds, except for assets held by fiscal agents.
Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balance, except investment income for the Internal Service Funds and the Capital Improvement Fund which is allocated to the General Fund.
Following areas of certain disclosure requirements, if applicable, for Deposits and Investment Risks are presented in the footnotes:
ii Interest Rate Risk
Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
D. Fair Value Measurement
u.s. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
The three levels of the fair value measurement hierarchy are described below:
Level 1- Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.
Level 2 - Inputs, other than quoted prices included in Level 1, that are observable for the ASSETS and liabilities through corroboration with market data at the measurement date.
* Level 3 - Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets and liabilities at the measurement date.
50 396
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) E. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to / from other funds" (i.e., the current portion oT interfund loans) or "advances to / from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to / from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
All trade and property tax receivables are shown net of an allowance for uncollectible.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due, or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the current period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1 ; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the First of March each year and are delinquent on August 31.
F. Prepaid Items
The prepaid items are payments made to vendors for costs applicable to future accounting periods and are recorded under the consumption method in both government-wide and fund financial statements.
G. Inventories
Inventories of supplies are recorded at cost, whereas inventories held for resale are recorded at lower of cost or market using the first-in, first-out (FIFO) method. The cost of inventory is recorded as an asset when purchased and is expensed when consumed.
H. Property Held for Resale
Property held for resale is recorded in the City's Housing Successor Special Revenue Fund, Housing Authority Development Projects Fund and in the Private-Purpose Trust Fund - Successor Agency of the Former Community Development Commission (CDC) at the lower of acquisition cost or estimated net realizable value when such amount becomes determinable as a result of the City entering into a contract for sale of property. 51 397
CITY OF SOUTH GATE
Nates to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) I. Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Contributed capital assets are valued at their estimated acquisition value at the date of the contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of three years or more.
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City's infrastructure assets are recorded at historical cost or at estimated historical cost if actual historical cost was not available. All current year additions to infrastructure assets are depreciated.
Depreciation has been provided using the straight-line method over the estimated useful life of the asset in the government-wide financial statements and in the fund financial statements of the proprietary funds.
The following schedule summarizes capital asset useful lives:
Structures and improvements
Equipment and furniture
Vehicles
Infrastructure
Wells
Pumping and purification equipment
Distribution and service equipment
Eastside reservoir
Westside reservoir
Right to use lease and subscription assets
10-50 years
3-50 years
5-10 years
10-65 years
20 years
5-50 years
5-50 years
45 years
45 years
5-50 years
J. Deferred Outflows/Inflows of Resources
The Statement of Net Position and the Balance Sheet report separate sections For Deferred Outflows of Resources and Deferred Inflows of Resources, when applicable.
Deferred Outflows ofResources represent outflows of resources (consumption of net assets) that apply to future periods and that, therefore, will not be recognized as an expense until that time.
Deferred Inflows of Resources represent inflows of resources (acquisition of net assets) that apply to future periods and that, therefore, will not be recognized as revenue until that time. 52 '70398
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) K. Net Pension Liability
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 as they are reported by the plans.
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.
The following timeframes are used for pension reporting:
CalPERS
Valuation Date
Measurement Date
Measurement Period
June 30, 2023
June 30, 2024
July 1, 2023 to June 30, 2024
PARS
Valuation Date
Measurement Date
Measurement Period
June 30, 2023
lune 30, 2024
July 1, 2023 to June 30, 2024
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight- line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
L, 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 Retiree Benefits Plan ("OPEB Plan") and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. 53 l1
399
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) The following timeframes are used for OPEB reporting:
OPEB
Valuation Date
Measurement Date
Measurement Period
June 30, 2023
June 30, 2024
July 1, 2023 to June 30, 2024
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over five years. All other amounts are amortized straight- line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
M. Compensated Absences
Employees can carry forward, for use in subsequent years, earned but unused vacation and sick leave benefits to a specific limit. Upon termination, the City is obligated to compensate employees for all accrued earned but unused vacation days. Upon termination, employees that have provided at least 15 years of service to the City are reimbursed for 50'!/o to 75"/o of earned but unused sick leave benefits.
A liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. A liability is also recorded for unused sick leave balances for an estimated amount based on active employee's eligibility . The estimated amount is calculated based on accrued value of the sick leave balances at June 30, 2025 and if it's more likely they will use it or be paid for it.
A liability is accrued for all leave benerits relating to the operations of the proprietary funds.
A current liability is accraed iri the governmental funds for material leave benefits due on demand to governmental fund employees that have terminated prior to year-end. All other amounts are recorded in the statement of net position. These non-current amounts will be recorded as fund expenditures in the year in which they are paid or become due.
During the year ended June 30, 2025, the City adopted new accounting guidance by implementing the provisions of Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences, which seeks to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences.
54 '72-
400
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies(Continuedl N. Long-Term Liabilities
In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
0. /Vet Position
In the governmental-wide financial statements and proprietary fund financial statements, net position is classified as follows:
Net Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt and any deferred outflows or inflows of resources that are attributed to the acquisition, construction, or improvement of the assets, net of unspent debt proceeds and deferred gain/loss on refunding and retention payable.
Restricted Net Position - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted - net position to have been depleted before unrestricted - net position is applied.
55 '75
401
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) P. Fund Balance
In the fund financial statements, governmental funds report the following fund balance classification :
Non-spendable - This porticn of a fund balance includes amounts that cannot be spent because they are either: (a) not in a spendable form, such as prepaid items, inventories of supplies, loans receivable, and land held for resale, unless the proceeds from the collection of those receivables or from sale of the properties is restricted, committed, or assigned; or (b) legally or contractually required to be maintained intact.
Restricted - This portion of a fund balance reflects constraints placed on the use of resources (other than non-spendable items) that are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed - This portion of a fund balance includes amounts that can only be used for specific purposes pursuant to constrains imposed by formal action of the government's highest level of decision-making authority (City Council) and remain binding unless removed in the same manner. The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. The City's General Fund balance committed for emergency reserves is established at a maximum of twenty percent of operating expenditures. The City also has committed funds for the employment resource center, budget stabilization and OPEB section 115 trust. The commitments are made through council approval establishing and amending the reserve amounts.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance).
In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. The City considers restricted fund balance to have been spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, 56 402
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(1) Summary of Siqnificant Accountinq Policies (Continued) when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.
Q. Use of Estimates
The preparation of financial statements in accordance with u.s. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates. (2) Cash and Investments
As or June 30, 2025, cash and investments were reported in the accompanying financial statements as follows:
Cash and investments
Cash and investments
with fiscal agent
Total cash and investments
Government-Wide
Statement of Net Position
Governmental Business-Type
Activities Activities
$ 82,915,546 $ 41,119,169
Fiduciary Funds
Statement oF
Net Position
$ 2,518,565
Total
$ 126,553,280
619,583 916,807 1,536,390
83 535 129 42 035 976 2 518 565 128 089 670
Cash and investments as of June 30, 2025 consisted of the following:
Cash :
Cash on hand
Deposits with financial institution
Totai Cash
Investments :
Investments
Investments held by bond trustee
Total Investments
Total Cash and Investments
$ 16,960
19,113,842
19,130,802
107,773,487
1,185,381
108,958,868
$ 128,089,670
57 16
403
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(2) Cash and Investments (Continued)
The City maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.
A. Demand Deposits
At June 30, 2025, the carrying amount of the City's deposits was $1910971231 and the bank balance was $20,227,005. The difference represents outstanding checks and other reconciling items.
The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110'/o of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150'/o of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC.
The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository.
These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local government.
58 404
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(2) Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized of the City by the California Government Code and the City's investment policy. The tab!e also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code.
Investment Types Authorized by
State Law
u.s. Treasury Obligations
Federal Agency Obligations
u.s. Government Sponsored Enterprise
Securities
Bankers' Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium-Term Notes
Money Market Mutual Funds
Mortgage Pass-Through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
Authorized by
Investment
Policy
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
No
No
Yes
Maximum
Maturity
5 years
5 years
5 years
180 days
270 days
5 years
1 year
92 days
5 years
N/A
5 years
N/A
N/A
Maximum
Percentage of
Portfolio
None
None
None
40'/0
30"/o
None
None
20"/o
30'!/o
None
20'/o
None
None
Maximum
Investment in
One Issuer
None
None
None
30'!/o
10%
None
None
None
10'/o
None
None
None
None
*Based On state law requirements or investment policy requirements, whichever is more restrictive 59 405
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(2) Cash and Investments (Continued)
C. Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreementg, rather than the general provisions of the California Government Code or the City's investment policy. The fo(lowing table identifies the investment types that are authorized for investments held by 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 Types
Local Agency Bonds
u.s. Treasury Obligations
u.s. Agency Securities
Bankers' Acceptances
Commercial Paper
Repurchase Agreements
Money Market Mutual Funds
Local Agency Investment Fund (LAIF)
Investment Agreements
D. Investment in State Investment Pool
Maximum
Maturity
5 years
5 years
None
1 year
2 70 days
3 0 days
N/A
N/A
N/A
Maximum
Percentage
Allowed
None
None
None
None
None
None
None
None
None
Maximum
Investment in
One Issuer
None
None
None
None
None
None
None
None
None
The City is a voluntary participant in the LAIF that is regulated by the California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is not registered with the Securities and Exchange Commission. 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. The City's investments with LAIF at June 30, 2025, included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities:
Structured /S/otes - debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) deperid upon orie cr more indices and/or that have embedded forwards or options.
Asset-Backed Securities - generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2025, the City had $ 301079,814 invested in LAIF, which had invested O.15'!/0 of the pool investment funds in Loans.
60 7!
406
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(2) Cash and Investments (Continued)
E. Fair Value Measurements
At June 30, 2025, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within the fair value hierarchy in which the fair value measurements fall at lune 30, 2025:
Investment Type Level 2
Local Agency Investment Fund $
Certificates of deposits 3/914,632
Money market funds
u.s. government sponsored
agency securities 23,541,030
Held by fiscal agent:
Money market funds
Not subject to
measurement
$ 30,079,815
50,238,010
1,185,381
Total
$ 30,079,815
3,914,632
50,238,010
23,541,030
1,185,381
Total $ 27,455,662 $ 81,503,206 $ 108,958,868
The certificates of deposits are valued based on matrix pricing and the u.s. government sponsored agency securities are valued based on institutional bond quotes.
F. Risk Disclosures
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. LAIF does not have a rating provided by a nationally recognized statistical rating organization.
At June 30, 2025, the City's investments are rated as follows:
Investment Type
Local Agency Investment Fund
Certificates of deposits
Money market funds
U.S. government sponsored
agency securities
Held by fiscal agent:
Money market funds
Total
Total
$ 30,079,815
3,914,632
50,238,010
23,541,030
1,185,381
$ 108,958,868
Minimum
Legal
Rating
N/A
N/A
AAA
AA
AAA
Ratings
at Year-End
AA Or AAA
50,238,010
Not Rated
$ 30,079,815
3,914,632
23,541,030
1,185,381
$ 74,964,421 $ 33,994,447
61 407
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(2) Cash and Investments (Continuedi
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 or the failure of the counterparty 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. As of June 30, 2025, none of the City's deposits or investments were exposed to custodial credit risk.
Concentration of Credit Risk
The City's investment policy imposes restrictions with the exception of u.s. Treasury securities, federal agency securities, u.s. government sponsored enterprise securities, overnight sweep accounts, and authorized pools that no more than 30'/o of the City's total investment portfolio to be invested in a single security type or 10'/o in any one corporate or bank issuer. With respect to concentration risk, as of June 30, 2025, the City is in compliance with its investment policy.
Investments in any one issuer that represent 5o/o or more of total City investment are as follows:
Investment Type Issuer
Reported
Amount
Percentage
of Portfolio
u.s. government sponsored
agency securities
u.s. government sponsored
agency securities
Federal Home Loan Bank
Federal Farm Credit Bank
$9,834,390
4,867,470
10.00'/o
6.00o/o
62 'F,D
408
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(2) Cash and Investments (Continued)
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
At June 30, 2025, the City's investments have the following remaining maturities:
Remaining Maturing (In Months)
Investment Type Totals
12 Months
Or Less
13 to 24
Months
25 to 60
Months
Local Agency Investment Fund
Certificates of deposit
Money market funds
U.S. government sponsored
agency securities
Held by fiscal agent:
Money market funds
Total
$ 30,079,815
3,914,632
50,238,010
23,541,030
1,185,381
$ 108,958,868
$ 30,079,815 $
3,199,262
50,238,010
715,370
16,751,000 5,791,360
1,185,381
$ 101,453,468 $ 6,506,730 $
998,670
998,670
(3) Leases Receivable
The City is the lessor in a non-cancellable lease for a land lease. The lessee is required to make fixed monthly payments of $12/000 per month. The City recognized $125,223 in leaserevenue and $ 19,977 in interest revenue during the current fiscal year related to thisagreement. As of June 30, 2025, the lease receivable is $431,198 and deferred inflows ofresources related to this lease is $387,107, 63 409
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(4) Notes and Loans Receivable
Summary of changes in notes and loans receivable for the year ended June 30, 2025 is as follows:
Program
Rental Rehabilitation
Section 8 Repayment Program
CDBG and First Time Home Buyers
CalHome Loan Program
Total
A, /?enta/ Rehabilitation
Balance
July 1, 2024 Additions Deletions
$ 17,433 $ 40,834 $
14,415
7,939,273 - (114,707)
296,740 - (49,437)
$ 8,267,861 $ 40,834 $ (164,144)
Balance
June 30, 2025
$ 58,267
14,415
7,824,566
247,303
$ 8,144,551
The City participates in a Rental Rehabilitation Program. The purpose of the Rental Rehabilitation Loan Program is to assist owners oT smaller rental properties which are occupied by persons or families that have an income less than 80'!/o of the statewide median income. At June 30, 2025, the City has rental rehabilitation outstanding balance in the amount of $58,267.
B. Section 8 Repayment Program
The City of South Gate also participates in a Section 8 Repayment Program. The program was authorized by Congress in 1974 and developed by HUD to provide rental subsidies for eligible tenant families (including single persons) residing in newly constructed, rehabilitated and existing rental and cooperative apartment projects. At June 30, 2025, the outstanding balance was $14,415.
C, CDBG First Time Home Buyer
The Community Development Department of the City of South Gate operates various loan programs under the Federal Community Development Block Grant Program which includes the First Time Homebuyer Program. This program provides zero percent interest silent second down payment assistance loans to residents who meet certain qualifications for the purpose of providing homeownership assistance to low-and-moderate income families.
The loans are secured by a deed of trust and monthly payments are not required. The loans become due and payable when any of the following occurs: 1) the property is sold or transferred, 2) property is no longer owner-occupied, 3) property is refinanced, 4) the last surviving borrower dies, at which time full repayment would be required, the loan is never forgiven. At June 30, 2025, the outstanding balance was $7,824,566. 64 410
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(4) Notes and Loans Receivable (Continued)
D. Ca/Home Loan Program
The Community Development Department or the City of South Gate operates a Homeowner Rehabilitation Program to assist low-income qualified residents make needed home repairs.
Home repairs include such things as new energy efficient windows, new roof, upgraded electrical and plumbing, and to address other substandard conditions.
A one-time funding of $1,000/000 was awarded by the State of California Housing andCommunity Development Department to assist at least 15 residents with zero percent interest loans, This loan program is capped at $50,000 per household and is due andpayable when any of the following occurs: 1) the property is sold or transferred, 2) property is no longer owner-occupied, 3) property is refinanced, 4) the last surviving borrower dies, or 5) at the end of thirty (30) years from loan origination, at which time full repayment would be required. The loan is never forgiven. At June 30, 2025, the outstanding balance is $247,303.
(5) Interfund Transactions
A. Due To/From Other Funds
Current interfund receivables and payables are the result of short-term borrowings at June 30, 2025.
Due to Other Funds
Due from Other Funds
Grant Special
Revenue Fund
Nonmajor
Governmental
Funds
Internal
Service Funds Total
General Fund
Utility Authority Water Fund
Total
$ 15,970,698 $ 2,161,189 $ 539,435 $ 18,671,322
1,810 1,810
$ 15,970,698 $ 2 162 999 $ 539,435 $ 18,673,132
B. Advances To/From Other Funds
On April 23, 2020, the City Council approved cooperation agreement between the City and the Housing Authority to provide needed financing for the purchase of property for development of low-moderate income housing project. The General Fund advanced $1,813,000 to the Nonmajor Governmental Funds (Housing Successor Special RevenueFund). As of June 30, 2025, the outstanding balance for the advance was in the amount oF $1,813,000. The advance is to be repaid upon sale of the project. 65 411
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(5) Interfund Transactions (Continued)
C. Interfund Transfers
Transfers Out
General Fund
Grants Special Revenue Fund
Capital Improvement Projects Fund
Non-major Governmental Funds
Utility Authority Water Fund
Utility Authority Refuse Fund
Internal Service Funds
Tota I
General Fund
164,323
1,168,527
1,303,403
Grant
Special
Revenue
Internal
Service
Funds Total
Transfers In
Capita I
Improvement
Projects Fund
$ 713,982
20,923,170
Non-major
Govemmental
Funds
$ 1,437,454
1,152,567
$ 2,636,253
1,132,029
$ 713,982 $ 1,437,454
20,923,170
1,152,567
9,359,455
95,456
12,967
11,777
$ 3,234,898 $ 5,386,334
21,087,493
2,284, 596
10,527!)82
1,398,859
12,967
11,777
The General Fund, Grant Special Revenue Fund, Non-major Governmental Fund, Utility Authority Water Fund, and Internal Service Funds transferred $713,982; $20,923,170; $91359,455; $95,456; and $11,777 respectively, to the Capital Improvement Projects Fund to pay for capital improvement projects.
The General Fund transferred %1,437,454 to cover deficit balances in the Non-major Governmental Funds.
The General Fund transferred $3,234,898 to cover deficit balances in the Internal Service Funds.
66 Ff
412
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(6) Capital Assets
A, Governmental Activities
Capital assets activity for Governmental Activities for the year ended June 30, 2025, follows:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Structures and improvements
Machinery and equipment
Right to use lease assets - Vehicles
Right to use lease assets - SBrTA
Infrastructure street network
Subtotal
Less accumulated depreciation:
Structures and improvements
Machinery and equipment
Right to use lease assets - Vehicles
Right to use lease assets - SBffA
Infrastructure street network
Subtotal
Total capital assetsi being depreciated
Total capital assets, net
Balance
July 1, 2024
$ 4,997,485 $
37,062,158
42,059,643
34,CII0,661
17,625,136
561,785
1,465,163
425,525,740
480,088,485
(20,437,052)
(13,289,101)
(203,491)
(541,E197)
(215,528,430)
(249,999,971>
Additions Deletions
10,300,605
10,300,605
(29 902 41s)
(29 go; <is)
29,300,994
1,701,830
157,680
20,535,980
51,696,484
(1,217,380)
(759,137)
(166,232)
(408,332)
(8,016,745)
(10,567,826)
230,088,514 41,128,658
Balance
June 30, 2025
$ 4,997,485
17,460,348
22,457,833
64,211,655
19,326,C)66
719,465
1,465,163
446,061,720
531,784,969
(21,654,432)
(14,048,238)
(369,723)
(950,229)
(223,545,175)
(260,567,797)
271,217,172
ii $ 293 675 005
Depreciation and amortization expense was charged to functions/programs of the primary government in the Governmental Activities as follows:
General government
Police
Parks and recreation
Community development
Public works
Fleet management
Information system
Buildings
Capital asset and equipment replacement
Total depreciation expense
$ 299,523
203,433
828,045
126,492
8,286,911
50i990
365,861
108,892
297,679
$ 10,567,826
67 413
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(6) Capital ASsetS (Continued)
B. Business Type Activities
Capital assets activity for Business-Type Activities for the year ended June 30, 2025, follows:
Capital assetsi not being depreciated:
Water rights
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Structures and improvements
Machinery and equipment
Infrastructure utility distribution system
Subtotal
Less accumulated depreciation
Structures and improvements
Machinery and equipment
Infrastructure utility distribution system
Subtotal
Total capital assets, being depreciated
Total capital assets, net
Balance
July 1, 2024
1,933,144 $
1,290,602
3,712,766
6,936,512
13,525,002
7,076,267
77,673,282
98,274,551
(2,679,444)
(5,581,495)
(+o,s=s,sgzi)
(48,806,633)
49,467,918
$ 56,404 430 $
Additions
2,177,139
2,177,139
240,449
115,447
5,347791
5,703,687
Deletions
Balance
June 30, 2025
(3,152,524)
(3,152,524)
1,933,144
1 ,290,602
2 ,737,381
5,961,127
13 765 451
7,l91i714
8 3,021,073
103,978,238
(622,083)
(165,136)
(1,999,833)
(2,787,052)
2,916,635
5,093,774 $(,3152
(3,301,527)
(5,746,631)
(42,545,527)
(51,593,6853
52,384,553
$ 58,345,680
Depreciation expense was charged to functions/programs of the primary government in the Business-Type Activities as follows:
Water Enterprise Fund
Sewer Enterprise Fund
Refuse Enterprise Fund
Total depreciation expense
$ 2,254,696
528,584
31772
$ 2,787,052
68 414
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(7) Lonq Term Liabilities
A. Governmenta/ Activities
The following is summary of changes in governmental activities long-term liabilities for the year ended June 30, 2025:
Govemmental activities:
Notes payable:
SCE Edison financing agreements
Total notes payable
Public offering:
2005 Pension obligation bonds
Total bonds
Leases payable:
Vehicle leases
Copier leases
Total lease payable
Balance
7/1/2024
106,816 $
106,816
7,070,000
7,070,000
325,640
27,549
353,189
Addition
157,681
157,681
Deletion
Balance
June 30, 2025
$ (76,363) $
(76,363)
30,453
30 453
(1, 630,000)
(1,630,000)
5,440,000
5,440,000
(140,281)
(18i258)
(158,539)
343,040
9,291
352,331
Due within
One Year
30,453
30,453
1,720,000
1,720,000
117,456
9,291
126,747
Subscriptions payable 771,891 (371,844) 400,047 344,710 Compensated absences" 5,866,160 3,432,851 (3t346t693) 5,952,318 502,111 Beginning balance of compensated absences have been restated to reflect the implementation of GASB 101.
Notes Payable
Southern Calirornia Edison On-Biil Financinq
The City entered into a financing agreement with Southern California Edison (direct borrowing) to provide five loans for a total of $882,556 for the implementation of certaain energy conservation measures at City facilities. The City is to make monthly payments of $7,946 over a ten-year period. Payments commenced on December 30, 2015, and the last payment will be made on June 30, 2026. The loan has no interest. At lune 30, 2025, the outstanding balance is $30/453.
The following schedule summarizes the debt service to maturity requirements for Southern California Edison debt outstanding as oF June 30, 2025:
Year Ending
June 30,
2026
Total
Principal
30,453
30,453
Total
30,453
30,453
69 ?7
415
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(7) Lonq Term Liabilities (Continued)
Bonds
2005 Pension Obliqation Bond
In March 2005, the City of South Gate issued $24,400,000 in Pension Obligation Bonds (public offering). The proceeds were used to provide furids to cover the City's unfunded actuarial liability for safety employees through June 30, 2004. Proceeds were also used to advance refund $6,675,000 of outstanding 2001 Taxable Certificates of Participation. The net proceeds were deposited in an escrow account with u.s. Bank National Association. The Certificates of Participation are considered defeased and have been paid in full.
The bonds mature in amounts ranging from $11070,000 to $1/910,000 with interest ranging from 4.6'/o to 5.42'/o. Interest on the bonds is payable on December 1, 2005 and semi- annually thereafter on June 1 and December 1 of each year. The bonds were issued at face value. At June 30, 2025, the outstanding balance on the bonds is $5,440,000.
The following schedule summarizes the debt service to maturity requirements for governmental activities bonds payable outstanding as of June 30, 2025:
Year Ending
lune 30,
2026
2027
2028
Total
Leases Payable
Vehicle Lease
Principal Interest Total
$ 1,720,000 $ 293,216 $ 2,013,216
1,810,000 200,508 2,010,508
1,910,000 102,949 2,012,949
$ 5,440,000 $ 596,673 $ 6,036,673
The City entered into eight lease agreements for the right to use vehicles in the amount of $639,652. The City is to make monthly payments between $682 and $55,915 over five- year periods. At June 30, 2025, the outstanding balance is $343,040.
The following schedule summarizes the debt service to maturity requirements for 6ebt outstanding as of lune 30, 2025:
Year Ending
June 30,
2026
2027
2028
2029
Total
Principal
$ 117,456
95,364
94,565
35,655
343,040 $
Interest
23,882 $
16,768
10,029
2,836
53,515 $
Total
141,338
112,132
104,594
38,491
396,555
70 416
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(7) Lonq Term Liabiltties (Continued)
Copier Leases
The City entered into an agreement for the right to use copiers in the amount of $79,814,The City is to make monthly payments of $1,559 over a five-year period. At June 30, 2025,the outstanding balance is $9,291.
The following schedule summarizes the debt service to maturity requirements for debtoutstanding as of June 30, 2025:
Year Ending
June 30,
2026
Total
Subscriptions Payable
Principal
$ 9,291
$ 9,291
Interest Total
$ 9,353
$ 9,353
The City entered into several subscription-based agreements. The following is a summaryof the outstanding balance as of June 30, 2025:
Year Ending
June 30,
2026
2027
2028
Total
Principal
$ 344,710
51,778
3,559
$ 400,047
B. Business-Type Activities
Interest
$ 7,993 $
980
148
$ 9,121 $
TOtal
352,703
52,758
3 ,707
4 09,168
The following is summary of changes in business-type activities long-term liabilities for theyear ended June 30, 2025:
Balance
July 1, 2024 Addition Deletion
Balance
June 30, 2025
Due within
One YearBusiness-Type Activities:
Public Offering:
2019A Water Revenue
Refunding Bonds $ 7,760,000 $ - $ (65,000) $ 7,695,000 $ 65,0002019AT Water Revenue Refunding Bonds 16,925,000 - (1,690,000) 15,235,000 1,730,000Unarnortizedpremium 780,178 (69,349) 710,829 69,349 Compensated absences* 331,537 483L366 (386,686) 428,217 36,103 Total long-term debt $ 25,796,715 $ 4831366 $ (2,211,035) $ 24,069LO46 $ 1L900,452 *Beginning balance of compensated absences have been restated to reflect the implementation of GASB 101. 71 417
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(7) Lonq Term Liabilities (Continued)
2019 Series A and AT Water Revenue Bonds
On December 5, 2019, the South Gate Utility Authority issued $31,340,000 of 2019 Series A and AT Water Revenue Bonds. Proceeds of these bonds were used to refund the Authority's 2001 Subordinate Revenue Bonds and 2012 Series Water Revenue Bonds and pay costs of issuance of these bonds. The refunding resulted in saving in debt service payment iri the amount of I7,568,399 and economic gain in present value saving of $519411319. The outstanding balance of the refunded debt at lune 30, 2025 was $22,930,000.
Debt covenants of the 2019 Revenue Bonds require that the Utility Authority set its charges at rates that will produce net water revenues that are at least equal to 120% of the proportionate share of certain debt service payments (as defined in the official statement).
Net water revenue received during the year was $4,171,878. Total principal and interest paid for the fiscal year was $2,507,853 for 2019 Series A and AT Water Revenue Bonds.
The following schedule summarizes the debt service to maturity requirements for the bonds outstanding as of June 30, 2025:
Year Ending
June 30,
2026
2027
2028
2029
2030
2031-2035
2036
Total
Principal
$ 1,755,000
1,840,000
1,890,000
1 ,945,000
2,000,000
11,000,000
2,460,000
Interest
$ 710,856
665,624
616,800
564,109
507,974
1,535,864
49,200
Total
$ 2,465,856
2,505,624
2,506,800
2,509,109
2,507,974
12,535,864
2,509,200
$ 22,890,000 $ 4,650,427 $ 27,540,427
(8) Defined Contribution Plan
The City has established a defined contribution plan in accordance with Internal Revenue Code Section 401(a) to provide tax deferred payments towards retirement for employees. Under this plan, the City will provide a dollar-for-dollar match of the contributions paid by the employee into a 457 deferred compensation plan in accordance with the MOU language of the five (5) bargaining units and as stated in the Terms and Conditions of Employment for Unclassified Executive Management group. For the year ended June 30, 2025, the City contributed $318,314 to the plan.
72 418
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans
The Following is the summary of net pension liability and related deferred outflows of resources and deferred inflows of resources at lune 30, 2025 and pension expense for the year then ended.
CalPERS
Miscellaneous TotalPARS
CalPERS
Safety
Net pension liability $ 39,591,747 $ 69,440,275 $ 242,029 $ 109,274,051 Deferred outflows of resources $ 10,069,850 $ 191995,577 $ 89,162 $ 30,154,589 Deferred inflow of resources $ 930,003 $ 1,956,023 $ $ 2,886,026 Pension expense (credit) $ 5,960,448 $ 12,646,610 $ 26,403 $ 18,633,461 A, California Public Employees' Retirement System ("CalPERS") General Information about the Pension Plan
Plan Description
The City contribution to the California Public Employees Retirement System ("CalPERS"), an agent multiple-employer defined benefit pension plan for miscellaneous employees and a cost-sharing multiple-employer defined benefit plan for safety employees. CalPERS act as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statue and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the annual actuarial valuation report. This report and CalPERS' audited financial statements are publicly available reports that can be obtained at CalPERS' website under Forms and Publications.
Benefits Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits provisions under both plans are established by the State statute and City resolution as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a '/o of
eligible compensation
Required employee contribution rates
Required employer contribution rates
" Closed to new entrants
Miscellaneous Plan
Classic' PEPRA
Prior to On or after On or after
January 1, 2013 January 1, 2013 lanuary 1, 2013
2.Oo/o @ 62 3.0'!/o @ 50 2.7'/0 @ 57
5 years of service 5 years of service 5 years of service monthly for life monthly for life rmnthly for life minimum 52 minimum 50 minimum 50
January 1, 2013
2.7o/o @ 55
5 years of service
monthly for life
m'nimum 50
2.000'/o - 2.700o/o
8. 000o/o
12.470'/o
l.OOO'Vo - 2.500'/(1
8.000o/o
12.470'Vo
Safety Plan
ClaSSiC* PEPRA
Prior to
3. 00'/o
9.000o/o
29. 300'Va
2.000o/o - 2.700'%
14. 500'/o
14.720'/o
73 'nl
419
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation.
An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 6 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.
Benefit terms provide for annual cost-of-living adjustments to each employee's retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by two percent.
Employees Covered by Benefit Terms
At the June 30, 2023 valuation date, the following employees were covered by the benefit terms :
Safety
Miscellaneous Classic PEPRA
Active employees
Transferred and terminated employees
Retired Employees and Beneficiaries
267
421
398
38 41
204
Total 1,086 283 49
Contribution Description
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. 74 420
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was used to determine the June 30, 2025 total pension liabilities, based on the following actuarial methods and assumptions:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Mortality Rate Table
Post Retirement Benefit Increase
Entry Age Actuarial Cost Method
6.90'/o
2.30o/o
Varies by Entry Age and Service
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, 2.30o/o thereafter
The mortality table was developed based on CalPERS-specific 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'/o 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.
Chanqe in Assumptions
There were no changes in assumptions.
Lonq-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 considered both short-term and long-term market return expectations. Using historical returns of all the funds" assets 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 the administrative expenses assumed of 10 Basis points. 75 421
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
The expected real rate of return by asset class are as follows:
Asset Classl
Global Equity - Cap-weighted
Global Equity - Non-Cap-weighted
Private Equity
Treasury
Mortgage-backed Securities
Investment Grade Corporates
High Yield
Emerging Market Debt
Private Debt
Real Assets
Leverage
Current Target
Allocation
30.00'!/o
12. 00'!/0
13. 00'!/o
5.00'/o
5.00'/o
10.00'!/o
5.00'/o
5.00'/o
5.00'!'o
15.00'/o
-5.00'/o
100.00'!/o
Real Return
Years '2
4. 54o/o
3.84'!/0
7.28o/o
0.27'/o
0. 50'/o
1. 56'!/o
2. 27'/o
2. 48o/o
3. 57o/o
3.21o/o
-0.59o/o
An expected inflation of 2.30'/o used for tnis period.
Figures are based on the 2021 Asset Liability Management study Discount Return
The discount rate used to measure the total pension liability was 6.90'/o. 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. 76 "i=l
422
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continuedi
Chanqes in the Net Pension Liability
The following table shows the changes in net pension liability for the miscellaneous plan recognized over the measurement period.
Miscellaneous Plan
Balance at June 30, 2023 (Valuation Date)
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total pension liability
Difference between expected and actual experience
Contributions from the employer
Contributions from employees
Net investment income
Administrative expenses
Benefit payments, including refunds of employee
contributions
Net Changes during July 1, 2023 to June 30, 2024
Balance at June 30, 2024 (Measurement Date)
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (C)=(a)-(b)
$ 198,649,171 $ 157,565,982 $ 41,083,189
3,814,580
13,767,000
3,232,295
5,626,503
1,688,116
15,118,910
(128,212)
(8,534,043)
12,279,832
$ 210,929,003
(8,534,043)
13,771,274
$ 171,337,256
3,814,580
13,767,000
3,232,295
(5,626,503)
(1,688,116)
(15,118,910)
128,212
(1,491,442)
$ 39,591,747
Proportionate Share of Net Pension Liability and Pension Expense The following table shows the City's safety plan's proportionate share of the risk pool collective net pension liability over the measure period.
SafetyPlan ii
Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
(a) (b) (C)=(a)-(b)
Balance at June 30, 2023 (Measurement Date) 206,196,971 135 794 075 70,402,896 Balance at June 30, 2024 (Measurement Date) 214,080,656 144,640,381 69,440,275 Net Changes during 2023-2024 7,883,685 8,846,306 (962,621) The City's proportionate share of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
Deferred outflows of resources, deferred inflows of resources, and pension expense are allocated based on the City's share of contributions made during the measurement period. 77 "75
423
CITY OF SOUTH GATE
NOteSi O the BaStC F!nanc!al Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Conttnued)
The City's proportionate share of the net pension liability was as follows:
6/30/2023 (Measurement Date)
6/30/2024 (Measurement Date)
Change - Increase (Decrease)
Safety Plan
0.94185'!/o
0.95243'/o
0.01058'/o
Sensitivity of the Net Pension Liability to Chanqes in the Discount Rate The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90 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 (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Miscellaneous Plan
Safety Plan
Plan's Net Pension Liability/(Asset)
D!SCOLlnt Rae - l'/o Current DtSCOunt D!SCOunt Rake + lo/a (5.90o/o) Race (6.90'!'o) (7.90/o)
$ 69,799,291 $ 39,591,747 $ 14,950,232
$ 98,683,488 $ 69,440,275 $ 45,523,439
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued CalPERS financial report.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of measurement date of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows.
Miscellaneous Plan
Pension contribution after measurement date
Difference between expected and actual experience
Net difference between projected and actual earning on pension plan investments
DeferreCI OutflOWS Deferred InflOWS
of Resources of Resources
$ 5,679,517 $
1,989,105 (930,003)
2,401,228
$ 10,069,850 $ (930,003)
78 424
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
Safety Plan
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Changes of Assumptions
Pension contribution after measurement date
Difference between expected and actual experience
Net difference between projected and actual earning on pension plan investments
Adjustment due to differences in proportions
tmpioyer contributions In eXCeSS (unaer)
proportionate contributions
Total
$ 1,710,866 $
7,657,403
5,666,944
3,356,427
1,382,628
221,307
$ 19,995,575 $
(184,257)
(518,288)
(1,253,478)
(1,956,023)
The expected average remaining service lifetime ("EARSL") is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous plan and the safety risk pool for the measurement date ending June 30, 2024 is 2.6 and 3.8 years, which was obtained by dividing the total service years of 2,876 and 630,177 (the sum of remaining service lifetimes of the active emproyees) by 1,086 and 166,163 (the total number of participants: active, inactive, and retired), respectively. Inactive employees and retirees have remaining service lifetime equal to O. Total future service is based on the members' probability of decrementing due to an event other than receiving a cash refund.
$5,679,517 and $7,657,403 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City's contributions subsequent to the measurement date during the fiscal year ended lune 30, 2025 will be recognized as a reduction of the net pension liability and collective net pension liability in the Fiscal year ending June 30, 2026. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal Year
Ending June 30
2025
2026
2027
2028
2029
Thereafter
Total
Deferred Outflows/ Deferred Outflows/
(Inflows) of Resources (Inflows) of Resources
Miscellaneous Safety
192,369 $ 3,881,160
4,787,842 7,774,455
(658,766) (125,048)
(861,115) (1,148,418)
3,460, 330 10,382,149
79 fll
425
CITY OF SOUTH GATE
Notes to the Basic Finaiicial Statements
For the Year Ended June 30, 2025
(9) 3Retirement Plans (Continued)
B. Supplemental Retirement Plan
General Information about the Pension Plan
Plan Description
Effective July 1, 2002, the City established a supplemental retirement plan with the Public Agency Retirement System ("PARS"). The supplemental retirement plan administered by PARS (the "PARS plan") is an agent multiple-employer defined benefit pension plan. The PARS plan is separated into two tiers. The PARS plan was organized under the authority of the City Council and may be amended by the City Council. The City issues a stand-alone financial report that is available to the public. The report is available on the City's website.
Benefits Provided
Tier one provides for the difference between the 3o/o at 55 benefits and the 2.7o/o at 55 benefits for years of service to the City. Eligibility to receive benefits is as follows:
* Must be a full-time Top Management miscellaneous (non-safety) employee of the City of South Gate on or after July 1, 2002. Employees hired after December 31, 2012 are not eligible to participate in the Plan.
* Must have completed three years of full-time continuous employment with the City prior to retirement.
* Must concurrently retire from PERS at the time of application for benefits under this plan.
* Must either 1) be at least fifty-five years of age, if retirement is concurrent with separation from the City or 2) be at least sixty years of age. * Must apply for the benefits, and meet the age requirements.
Tier two provides a monthly lifetime annuity payment to eligible employees in lieu of post- employment health care benefits. Eligibility to receive benefits is as follows:
@ Must have retired From the City with 20 or more years of service. * Must remain retired.
* Must not participate in the PERS health plan offered by the City.
Employees Covered by Benefit Terms
At June 30, 2023, the valuation date, plan membership consisted of the following:
Employee information
Active employees
Terminated employees
Retired Employees and Beneficiaries
1 TOtal
80 426
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
Contributions
The employer contribution rates for all public employees are determined on an annual basis by the actuary and are effective on the July 1 following notice of a change in the rate. The total plan contributions are determined by an independent pension actuary using information furnished by the City and by PARS. 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. For the year ended June 30, 2025, the City contributed $801009 for the plan. No contributions are required from the employees.
Net Pension Liability
The City's total pension liability was valued as of June 30, 2023 and was used to calculate the net pension liability measured as of June 30, 2024.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method
Amortization Method
Amortization period
Inflation
Entry age normal , level percent oF pay
Closed period, level percent of pay
20 years
2.30'/o
Investment return
Mortality
Retirement
6.6CP'o
CalPERS rates
CalPERS rates
Lonq-Term Expected Real Rate of Return
The long-term expected rate of return is determined using the long-term rates of return developed by PFM Asset Management for financial reporting after lune 30, 2023, Target
Index Allocation
Domestic Equity
International Developed Equity
Emerging Markets Equity
REITs
Short-Term Bond
Core Fixed Income
High Yield
Cash
23.00'/o
4.00'Vo
2.00'/o
1.00'/o
14.OCo/o
49.30'/o
1.80'/o
5.00'/o
100.OO%
81 427
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
Discount Rate
The discount rate used to measure the total pension liability is 6.60o/o. This is the expected long-term rate of return on City assets using the expected long-term rate of return on invested assets provided by Public Agency Retirement Services (PARS). The projection of cash flows used to determine the discount rate assumed that the City contribution will be marle at rates equal to the actuarially determined contribution rates. Based on those assumptions, the pension plan's fiduciary net position is projected to cover all future pension payments. Therefore, the discount rate was set equal to the long-term expected rate of return.
Chanqe in Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.
Balance at June 30, 2023
Changes Recognized for the
Measurement Period:
Service Cost
Interest on the total pension liability
Difference between expected
and actual experience
Changes of Assumptions
Contributions from employer
Net investment income
Benefit payments, including refunds
Administrative expense
Net Changes
Balance at )une 30, 2024 (Measurement Date)
Total Pension
Liability
(a)
Increase (Decrease)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability/(Asset)
(C) = (a) - (b)
$ 1,506,148 $ 1,152,928 $ 353,220
3,308
gs,ggg
(8,170)
(109,851)
(18,714)
1,487,434
78,989
128,988
(109,851)
(5,649)
92,477
$ 1,245,405 $
3,308
gs,ggg
(8,170)
(78,989)
(128,988)
5,649
(111,191)
242,029
82 700
428
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(9) Retirement Plans (Continued)
Sensitivity of the Net Pension Liability to Chanqes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 6.60o/o, as well as what the Plan's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.60'/o) or 1 percentage point higher (7.60'/o) than the current rate.
Discount Rate
l'!/o Decrease
(5.60'/o)
Plan's Net Pension Liability $ 382,239
Pension Plan Fiduciary Net Position
Current Discount Rate
Discount Rate l'/o Increase
(6.60'/o) (7.6PXo)
$ 242,029 $ 121,488
Detailed information about the plan's fiduciary net position is available upon request.
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
At June 30, 2025, the City reported deferred outflows and deferred inflows of resources related to PARS plan as follows:
Pension contribution after measurement date
Net difference between expected and actual
earnings on pension plan investment
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 80,009 $
9,153
89,162 $
$80,009 reported as deferred outflows of resources related to pension contribution resulting from the City's contributions subsequent to the measurement date during the year ended June 30, 2025 will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2026. Other amounts reported as deferred outflows or resources related to pensions will be recognized as pension expense as Follows:
Fiscal Year
Ending June 30
Deferred
Outflows/(Inflows)
of Resources
2026
2027
2028
2029
2030
Thereaffer
Total
(2,818)
35,717
(12,927)
(10,819)
9,153
83 /ol
429
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the \ear Ended June 30, 2025
(10) Other Postemployment Benefits
A. Plan Description
The City administers a single-employer defined-benefit post-employment healthcare plan (the Plan). Dependents are eligible to enroll, and'benefits continue to surviving spouses.
Retirees are eligible for medical benefits if they retire with 20+ years of City service and remain in or enroll in a CalPERS plan upon retirement, and remain so retired. For 2025, the City reimburses retirees who have attained age 50 and at least 20 years of service for 100% of premiums up to a maximum of $150/month for NonSafety Employees, $200/month for Top Management Employees, and $250/month for Safety Employees who retired before July 1 , 2005. Safety employees retired after July 1, 2005, who have attained age 50 and at least 2 0 years of service are eligible to receive up to the two-party Kaiser rate in effect on luly 1, 2005 and increased each year by 5o/o maximum. The maximum does not change based on Medicare eligibility or spouse coverage. The terms of benefits provided are authorized and may be amended in the future by City Council.
At June 30, 2023, (the census date), the benefit term covered the following employees:
Active employees
Retired employees and beneficiaries
344
120
464
B. Funding Policy
Retirees participating in PEMHCA are responsible for the payment of their medical insurance premiums except that the City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act.
The amount contributed by the City during the year ended June 30, 2025 was $1,298,403 on a pay-as-you-go basis. The City has not established a trust for the purpose of holding assets accumulated for plan benefits.
84 430
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(10) Other Postemployment Benefits (Continued)
C, Actuarial Assumptions
The City's total OPEB liability was valued as of June 30, 2023, and was used to calculate the net OPEB liability measured as of June 30, 2024. The total OPEB liability in the lune 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Healthcare cost trend rates
Pre-Medicare
Medicare
Mortality Rate Table
D. Discount Rate
Entry Age Normal, Level Percentage of Salary
4.09'!/o
2.30o/o
2.80'!/o. Additional merit-based increases based on CalPERS merit salary increase tables.
6.80% !n C)1e f!rSt Yeari [rend!ng dOWn kO 4.14'!/o
4.l7o/o in the first year, trending down to 4.l4o/a over 52 years.
Based on CalPERS tables.
The discount rate used to measure the total OPEB liability was 4.09'/0. The City's OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high- quality 20-year municipal bonds, as of the valuation date.
E. Change in the Total OPEB Liability
Balance at June 30, 2023
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total OPEB liability
Changes of benefit terms
Difference between expected and actual experience
Changes of assumptions
Contributions from the employer
Contributions from employees
Benefit payments, including refunds of employee
contributions and implicit subsidy
Net Changes during July 1, 2023 to June 30, 2024
Balance at lune 30, 2024 (Measurement Date)
Increase (Decrease)
Total OPEB
Liability
(a)
30,356,893
1,163,320
1,193,542
118,145
(949,996)
(923,733)
(275,144)
326,134
30,683,027
85 /01
431
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(10) Other Postemployment Benefits (Continued)
Sensitivity of the Total OPEB Liability to Chanqes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate 1-percentage point lower (3.09'/o) or I-percentage point higher (5.09'/o) than the current discount rate:
Plan's OPEB Liability/(Asset)
Discount Rate - io/o Current DtSCOunt: D!SCOunt Ra!e '- l'/o (3.09'!/o) Rake (4.09'!/o) (5.09'!/o)
June 30, 2024 Measurement Date $ 35,154,509 $ 30,683,027 $ 271014,149 Sensitivity of the Total OPEB Liability to Chanqes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1- percentage-point lower (5.80'/o) or 1-percentage-point higher (7.80'/o) than the current healthcare cost trend rates:
Plan's OPEB Liability/(Asset)
Healthcare Cost Healthcare Cost
Trend Rate Trend Rate + l'/o
(6.80o/o) (7.80'/o)
30,683,027 $ 33,651,93027,912,111
Healthcare Cost
Trend Rate - l'!/o
(5.80'/o)
June 30, 2024 Measurement Date $
F. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB
For the year ended June 30, 2025, the City recognized OPEB expense of $1,380,399 for the City Plan. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
OPEB contribution made after the measurement
period
Difference between expected and actuai experience
Changes of assumptions
Total
Deferred Outflows
of Resources
Deferred Inflows
of Resources
1,298,403
6,172,140
2,689,265
10,159,808
(3,486,464)
(7,455,711)
$ (10,942,175)
$11298,403 reported as deferred outflows of resources related to OPEB resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the fiscal year ending June 30, 2026. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in the future OPEB expense as follows:
86 432
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(10) Other Postemployment Benefits (Continued)
Fiscal Year
Ending June 30
2026
2027
2028
2029
2030
Thereafter
Total
Deferred
Outflows/(Inflows)
of Resources
(897,758)
(890,353)
(275,437)
(233,695)
(336,717)
553,190
(2,080,770)
(11) Self-Insurance
The City is self-insured for general, automobile, public liability and worker's compensation claims. The City has purchased an excess insurance policy for worker compensation claims from Safety National Casualty Corporation. Under this policy, Safety National covers all workers' compensation claim expenses over $1,000,000 per claim for safety and over $7501000 for non-safety. An Internal Service Fund is used to account for the collection ofpremiums from various City departments related to the amount of workers' compensation policy premiuin paid and general claims liabilities. Premiums assessed for general claim liabilities are established based on historical claims experience. The City is a member of the Independent Cities Risk Management Authority ("ICRMA"), a joint powers authority formed to provide liability insurance coverage for independent cities. Under the terms of the agreement with the Authority, the City is insured for losses above $250,000 per claim.
A claims liability of $17,633,123 is reported in the Self-Insurance Internal Service Fund at June30, 2025. Claims are reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
Claims activities for the two years ended June 30, 2025 are presented as follows:
Years Ended
Workers' Compensation:
June 30, 2024
June 30, 2025
General Liability:
]une 30, 2024
June 30, 2025
Beginning
Balance
$ 7,236,950
6,096,129
$ 6,772,949
7,583,307
Addition
* 2,104,066
2,177,891
$ 2,586,902
4,010,526
Deletion
$ (3,244,887)
(2,002,480)
$ (1,776,544)
(232,249)
Ending
Balance
$ 6,096,129
6,271,540
$ 7,583,307
11,361,584
87 iO r
433
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
(12) Continqencies
For the Year Ended June 30, 2025
The City is presently involved in other matters of litigation that have arisen in the normal course of the City's business. City management befieves, based upon consultation with the City Attorney, that these cases, in aggregate, are not expected to have a material adverse financial impact on the City. Additionally, City management believes that sufficient reserves are available to the City to cover any potential losses, should an unfavorable outcome materialize.
(13) Commitments
The following encumbrances existed at lune 30, 2025:
Fund
General
Capital Improvement Projects
Nonmajor Governmental
Total Encumbrances
$ 1,970,000
10,485,385
3,033,171
The following material construction commitments existed at June 30, 2025:
Project Name
Tweedy Mile Complete Streets
I-710 Freeway Blvd Southbound
Urban Orchard Well No. 30
Contract
Amount
$ 704,506
1,070,257
399,000
Expenditures
to date as of
June 30, 2025
665,132
1,033,783
61,647
Remaining
Commitments
39,374
36,474
337,353
88 434
CITY OF SOUTH GATE
Notes to ttte Basic Financial Statements
For the Year Ended June 30, 2025
(14) Deficit Fund Balances and Net Position
A. Government Wide Financial Statements
The City's Statement of Net Position shows an unrestricted deficit net position of $48,455,375, resulting mainly From the implementation of GASB Statement No.'s 68 (Pensions) and 75 (OPEB) that required the City to report $109,274,051 in aggregate netpension liability and $30/683,027 in total OPEB liability in the City's financial statements.
B. Fund Financial Statements
The following funds contained a deficit at June 30, 2025:
Funds
Governmental Funds:
Grants Special Revenue
Nonmajor Governmental Funds:
Housing Authority
Housing Authority Development
LEAP Grant
Permanent Local Housing Grant
Street Lighting & Landscape
TDA Bikeway
Used Oil Recycling Program
Internal Service Funds:
Insurance
Deficit
$ 12,909,788
9,572
206,435
285,368
764
137,467
87,756
13,840
9,144,880
These deficits will be funded with future revenue or transfers from other funds. 89 /D?
435
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(15) Excess Expenditures over Appropriations
Expenditures for the year ended June 30, 2025, exceeded appropriations at the department or expenditure category level within the following funds:
Fund Appropriations Expenditures Excess
General Furid:
City attorney
Prtnc!pal
Interest
Nonmajor Governmental Funds:
Special Revenue Funds:
Housing Authority
Community development
Air Quality Improvement
Community development
Public Access Corporation
General government
Street Lighting & Landscaping
Public works
Principal
Measure W
$ 1,688,037 $
1,630,000
381,073
5,799,950
7,913
18,845
3,227,271
1,787,806 $
1,729,582
384,882
6,743,657
8,092
29,852
3,278,941
76,364
(99,769)
(99,582)
(3,809)
(943,707)
(179)
(11,007)
(51,670)
(76,364)
Public works 519,746 (519,7 46)
Used Oil Recycling Program
Public works
Beverage Container Recycling Program
Public works
Emergency Housing Voucher
Community development
Integrated Waste Management Grant
Community development
LEAP Grant
Community development
American Rescue Plan Act
General government
Police
200,000
7,684,554
27,006
29,809
397,032
59,092
6,986
9,282,548
494,702
(27,006)
(29,809)
(197,032)
(59,092)
(6,986)
(1,597,994)
(494,702)
(16) Successor Aqency Trust for Assets of Former Community Development Commission On December 29, 2011, the California Supreme Court upheld Assembly Bill IX 26 ("the Bill") that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of South Gate that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provided that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 11, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 7473. go
436
CITY OF SOUTH GATE
Notes to the Bastc Financial Statements
For the Year Ended June 30, 2025
(16) Successor Aqencv Trust for Assets of Former Communitv Development Commission(Continued) After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in theState of California cannot enter into new projects, obligations or commitments. Subject to thecontrol of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enForceable obligations of theformer redevelopment agency until all enforceable obligations of the prior redevelopmentagency have been paid in full and all assets have been liquidated.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
The Successor Agency to the Former Improvement Agency is reported as a fiduciary fund(private purpose trust fund).
A, Capital Assets
The summary of changes in the successor agency's capital assets for the year ended June30, 2025 is as follows:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Structures and improvements
Subtotal
Less accumulated depreciation:
Structures and improvements
Subtotal
Total capital assets, being depreciated
Total capital assetsi net
Balance
July 1, 2024 Additions Deletions
$ 1,686,000 $
1,686,000
381,785
381,785
(335,648)
(335,648)
46,137
$ 1,732,137
19,089)
19,089)
19.089
Balance
June 30, 2025
$ 1,686,000
1,686,000
381,785
381,785
(354,737)
(354,737)
27,048
$ 1,713,048
91 70"l
437
CITY OF SOUTH GATE
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
(16) Successor Aqency Trust for Assets of Former Community Developmomm;i,ssion (Continuedj
B. Commitments and Contingencies
On May 13, 1998, the Community Development Commission of the City of South Gate entered into a Disposition and Development Agreement with South Gate Villas, LLC. In accordance with this agreement, a promissory note, dated October 27, 1998, was written where!:iy South Gate Villas, LLC, would pay the Commission $7,030/000. However, subject to certain provisions included in the disposition and development agreement, $187,421 would be forgiven annually for each of the next twenty-nine years. Since the provisions indicated in the disposition and development agreement have been significantly met and the possibility of repayment is remote, no receivable has been reflected. The accounting treatment is in accordance with generally accepted accounting principles.
In addition, the Community Development Commission of the City of South Gate has land held for resale in the amount $2051000 which was acquired and recorded at acquisition cost. Due to the downturn of the economic condition of the State and potential sale of the land in the future, the City may record a potential loss due to the fair market of the asset at the time of the sale.
(17) Restatements
The City no longer reports the American Rescue Plan Act as a major fund as it no longer meets the requirements of a major fund. Additionally, the City implemented GASB 101: Compensated Absences during the year. This adjustment recognized vacation, sick, and administrative leave (and applicable payroll taxes) that has not been used but is more likely than not to be used or settled in the future.
Government Wide Funds
Governmental Business-Type American Rescue Nonrnajor Activities Activities Plan Act Governmental
Net position at July 1, 2024,
as previously reported
Change from major to
nonmajor fund
Change in accounting
principle (GASB 101)
$241,881,966 $ 66,048,752 $
(61,638) (16,169)
913,192 $ 41,739,207
(913,192) 913,192
Net position at luly 1, 2024,
as restated $241,820,328 $ 66,032,583 $ $ 421652,399
92 //D
438
REQUIRED SUPPLEMENT ARY INFORMATION
93 439
This page intentionally left blank.
440
City of South Gate
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2025
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property (loss)
Fines and forfeitures
Rental
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
City Council
City Clerk
City Treasurer
City Attorney
City Manager
Administrative Services
Total general government
Police
Community development
Parks & recreation
Public works
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING (USES):
Transfers in
Transfers out
Total other financing (uses)
CHANGE IN FUND BALANCE
Fund Balance:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 52,620,936
1,716,800
154,600
3,305,300
506,700
1 ,427,697
2,030,228
4,892,740
66,655,001
351,462
997,604
75,592
1,688,037
964,363
5,252,030
9,329,088
32,787,553
5,147,391
12,916,199
6,417,340
1,630,000
381,073
68,608,644
(1,953,643)
(202,384)
(202,384)
$ 52,033,171
1,592,534
1,364,555
3,179,216
796,852
1,559,268
1,599,516
6,649,614
68,774,726
351,462
997,604
75,592
1,688,037
1,078,713
5,091,024
9,282,432
30,267,896
5,402,585
14,291,608
6,743,959
1,630,000
381,073
67,999,553
775,173
188,700
(2,911,086)
(2,722,386)
$ (2,156,027) $ (1,947,213)
Actual
Amounts
$ 51,413,830
1,622,067
704,948
3,505,358
1,521,048
1 ,568,859
2 37,849
6,017,090
66,591,049
323,562
785,316
69,656
1,786,879
947,613
4,667,879
8,580,905
30,121,331
4,634,837
12,774,084
6,247,695
1,729,582
384,882
64,473,316
2,117,733
2,636,253
(5,386,334)
(2,693,224)
Variance with
Final Budget
$ (619,341)
29,533
(659,607)
326,142
724,196
9,591
(1,361,667)
(632,524)
(2,183,677)
27,900
212,288
5,936
(98,842)
131,100
423,145
701,527
146,565
767,748
1,517,524
496,264
(99,582)
(3,809)
3,526,237
1,342,560
2,447,553
(2,475,248)
29,162
(575,491) $ 1,371,722
37,630,366
$ 37,054,875
See accompanying Notes to the Required Supplementary Information. gs
441
City of South Gate
Required Supplementary Information
Budgetary Comparison Schedule - Grants Special Revenue Fund For the Year Ended June 30, 2025
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Current:
Community development
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers in
Transfers out
Total other financing uses
CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT):
Beginning of year
End of year
Budgeted Amounts
Original Final
Actua
Amounts
$ 12,487,981
12,487,981
$ 24,415,816
24,415,816
$ 17,385,995
17,385,995
5,000,705
5,000,705
' 891
891
12,487,981 19,415,111 17,385,104
$ 12,487,981
(42,980,831)
(42,980,831)
$ (23,565,720)
1,132,029
(21,087,493)
(19t955,464)
(2,570,360)
(10,339,428)
$ (12,909,788)
Variance with
Final Budget
$ (7,029,821)
(7,029,821)
4,999,814
4,999,814
(2,030,007)
1 ,132,029
21,893,338
23,025,367
$ 20i995i360
See accompanying Notes to the Required Supplementary Information. 96 442
City of South Gate
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2025
Budgets and Budgetary Accounting
The City adheres to general procedures in establishing its annual budget, which is reflected in the accompanyingbudgetary statements and schedules. The annual budget adopted by the City Council provides for the generaloperations of the City. It includes proposed expenditures and the means of Financing them. Budgeted appropriationslapse at the end of the year. The City Council approves total budgeted appropriations and amendments toappropriations throughout the year. The City Council must approve budget transfers between departments, funds andactivities, as well as for the use of salary and benefit appropriations for something other than salary and benefits. Thedepartments or the General Fund are considered to be departments for purposes of this requirement. Actualexpenditures may not legally exceed budgeted appropriations at the department level. The level of budgetary contro)(that is, the level at which expenditures cannot legally exceed the appropriated amount at the department level, whichis the legal level of control) is established at the department level within each fund.
Annual budgets are adopted for all Governmental Funds on a basis substantially consistent with Generally AcceptedAccounting Principles (GAAP). Formal budgetary information is employed as a management control device.Commitments for materials and services, such as purchase orders and contracts are recorded during the year asencumbrances to aSsist in controlling expenditures. All appropriations lapse at year-end. Encumbrances for openpurchase orders and/or ongoing projects or contracts are carried over and are added to the following year's budgetedappropriations.
Expenditures for the year ended June 30, 2025, exceeded appropriations at the department or expenditure categorylevel within the following funds:
Fund Appropriations Expenditures Excess
General Fund:
City attorney
Principal
Interest
$ 1,688,037
1,630,000
381,073
$ 1,786,879
1,729,582
384,882
$ (98,842)
(99,582)
(3,809)
97 lir
443
City of South Gate
Required Supplementary Informatton
Schedule of Changes in Net Penston Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement Systeiri ("CalPERS") Miscellaneous Plari Measurement Period
Service cost
Interest on total pension liability
Changes in assumptions
Differences between expected and actual
experience
Changes in benefit terms
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan fiduciary net position
Contributions - employer
Contributions - employee
Net investment incomea
Benefit payments
Plan to plan resources movement
Administrative expense
Other Miscellaneous Income/(Expense)
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
2023-24
I 3,814,580
13,767,000
3,232,295
2022-23
$ 3,186,185
12,976,797
246,872
(4,030,015)
(8,534,043)
12,279,832
198,649,171
$ 210,929,003 $
5,626,503 *
1,688,116
15,118,910
(8,534,043)
(7,980,476)
4,399,363
194,249,808
198,649,171
5,E116,539
1,320,586
9,241,247
(7,980,476)
(128,212)
13,771,274
157,565,982
$ 171,337,256
(109,772)
8,288,124-
149,277,858
$ 157,565,982
2021-22
$ 3,205,823
12,686,538
6,119,427
(3,681,427)
(7,805,031)
10,525,330
183,724,478
$ 194,249,808
$ 5,234,731
1,213,666
(12,317,517)
(7,805,031)
(101,573)
(13,775,724)
163,053,582
$ 149,277,858
2020-21
$ 3,140,084
12,388,906
(601,444)
(7,011,754)
7,915,792
175,808,686
$ 183,724,478
4 4,879,335
1,142,823
30,325,923
(7,011,754)
(133,709)
;3,202,618
133,850,964
$ 163,053,582
2019-20
$ 3,054i995
11,842,099
1,611,093
(6,369,348)
10,138,839
165,669,847
$ 175,808,686
$ 4,439,314
1,242,255
6,383,436
(6,369,348)
(180,923)
5,514,734
128,336,230
$ 133,850,964
Net pension liabllity - ending (a)-(b)
Plan fiduciary net position as a percentage of the
total pension liability
Covered payroll
Net pension liability as a percentage of covered
payroll
$ 39,591,747 $ 41,083,189 $ 44%)71,950 $ 20,670,896 $ 41,957722 NOteS:
Benefit changes: the figures above do not Include any liability impact that may have resulted from plan changes which occurred after June 30, 2017 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes).
Changes }n assumptions: NO changes in 2024. NO assumption changes in 2023. In 2022, the accounting diSCOunt rate WaS reduced from
7.15"/o to 6.90'/o. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Actuarial Assumptions. None in 2021, 2020 and 2019. In 2018, demographlc 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 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. 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.
98 444
City of South Gate
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Measurement Period
Service cost
Interest on total pension liability
Changes in assumptions
Differences between expected and actual
experience
Changes in benefit terms
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total penslon liability - beginning
Total pension liability - ending (a)
2018-19
$ 2,870,032
11,164,341
(1,377,295)
(6,148,296)
6,508,782
159,161,065
$ 165,669,847
2017-18
$ 2,850,621
10,723,300
(532,576)
961,061
(5,927,517)
8,074,889
151,086,176
$ 159,161,065
2016-17
$2,604,468
10,183,905
9,063,137
(1,443,448)
(5,664,414)
14,743,648
136,342,528
$ 151,086,176
2015-16
$2,261,496
9,807,665
(1,238,446)
(5,601,315)
5,229,400
131,113,128
$ 136,342,528
2014-15
$2,160,710
9,431,040
(2,453,625)
(399,523)
(5,359,664)
3,378,938
127,734,190
$ 131,113,128
Plan fiduciary net position
Contributions - employer
Contributions - employee
Net investment incomea
Benefit payments
Plan to plan resources movement
Administrative expense
Other Miscellaneous Income/(Expense)
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
$ 3,679,801 $
1,242,553
7,937,313
(6,148,296)
(86,856)
282
6,624,797
121,711,433
$ 128,336,230
3,025,649
1,239,580
9,588,212
(5,927,517)
(282)
(178,114)
(338,242)
7,409,286
114,302,147
$ 121,711,433
$ 2,807,597
1,119,350
11,577,937
(5,664,414)
936
(154,457)
9 ,686,949
10 4,615,198
$114,302,147
$ 2,371,025
1,117,889
511,739
(5,601,315)
(254)
(64,773)
(1,665,689)
106,280,887
$ 104,615,198
$ 1,749,186
1 ,028,703
2,339,332
(5,359,664)
(119,756)
4,871
(357,328)
106,638,215
$ 106,280,887
Net pension liability - ending (a)-(b)
Plan fiduciary net position as a percentage of the total pension liability
$ 37,333,617 $ 37,449,632 $ 36,784,029 $ 31,727,330 $ 24,832,241
77.47% 76.47% 75.65% 76.73'Va 81.06%
Covered payroll
Net pension liability as a percentage of covered
payroll
$ 15,190,177 $ 14,926,282 $ 13,777,340 $ 13,452,475 $ 12,677,247 245.77')"0 250.90'/0 266.99% 235.85o/o 195.88%
gg
// 7
445
City of South Gate
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
PARS - Supplemental Retireierit Plari
Measurement Period
Service cost
Interest on total pension liability
Differences between expected and actual
experience
Changes in assumptions
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
2023-24 2022-23 2021-22 2020-21 2019-20
$ 3,308 $ 2,831 $ 3,014 $ 7,560 $ 7,114
95,999 89,917 90,861 96,992 98,688
(8,170)
(109,851)
(18,714)
1,506,148
1,487,434 $
121,701
13,430
(170,828)
57,051
1,449,097
1,506148 $
(523)
(48,124)
(107,816)
(62,588)
1,511,685
1,449,097 $
(90,671)
(107,996)
(94,115)
1,605,800
1,511,685 $
(2,071)
42,502
(103,183)
43,050
1,562,750
1,605,800
Plan fiduciary net position
Contributions - employer
Net investment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net pension liability - ending (a)-(b)
Plan fiduciary net position as a percentage of the
total pension liability
$ 78,989 $
128,988
(109,851)
(5,649)
92,477
1,152,928
$ 1,245,405 $
242,029 $
83.73'V0
go,sio $
83,716
(170,828)
(5,596)
(2,198)
1,155,126
1,152,928 $
353,220 $
76.55o/o
93,404 $
(160,749)
(107,816)
(6,101)
(181,262)
1,336,388
1,155,126 $
293,971 $
79.71%
49,000 $
261,564
(107,996)
(5,830)
196,738
1,139,650
1,336,388 $
175,297 $
88.40"!/0
96,005
35,713
(103,183)
(5,484)
23,051
1,116,599
1,139,650
466,150
70.97%
Covered payroll
Net pension liability as a percentage of covered
payroll
139,938 $
172.95'Vo
158,424 $
222.96'/o
147,697 $
199.04o/o
142,716 $
122.83%
321,270
145.10'/o
NOteS:
Changes in assumptions: None in 2024. In 2023, the discount rate changed from 6.5E1'/o to 6.60'/o. In 2022, the payroll growth rate changed from 2.75% to
2.80%. NOne in 2021. In 2020, discount rate changed from 6.50'/o tO 6.22o/o. In 2019, discount rate changed from 6.52'Vo tO 6.50'/o. In 2018, discount rate changed from 6.75% eO 6.52%; payroll grOWfFl rate changed from 2.875% tO 2.750%. 100
//g
446
City of South Gate
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
PARS - Supplemental Retirement Plan
Measurement Period
Service cost
Interest on total pension liability
Differences between expected and actual
experience
Changes in assumptions
Benefit payments, including refunds of employee
contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
2018-19 2017-18 2016-17 2015-16 2014-15
$ 6i565 $ 6,173 $ - $ 9,276 $ 9,006
94,584 97,115 - 95,683 94,489
62,961
3,036
(97,041)
70,105
1,492,645
$ 1,562,750 $
32,997
(86,425)
49,860
1,442,785
1,492,645 $
13,920
13,920
1,428,865
1,442,785 $
(85,995)
18,964
1,409,901
1,428,865 $
(29,211)
63,351
(86,885)
50,750
1,359,151
1,409,901
Plan fiduciary net position
Contributions - employer
Net investment income
Benefit payments
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan flduciary net position - ending (b)
$ 101,362 $
64,637
(97,041)
(5,307)
63,651
1,052,948
$ 1,116,599 $
89,422 $
62,482
(86,425)
(8,712)
56,767
996,181
1,052,948 $
996,181
996,181 $
89,262 $
91,701
(85,995)
(4,851)
90,117
906,064
996,181 $
92,402
10,118
(86,885)
(4,517)
11,118
894,946
906,064
Net pension liability - ending (a)-(b) 446,151 $ 439,697 $ 446,604 $ 432,684 $ 503,837 Plan fiduciary net position as a percentage of the
total pension liability
Covered payroll
Net pension liability as a percentage of covered
payroll
71.45!'o 70.S4ok 69.05% 69.72'/o 64.26o/a
312,672 $ 289,767 $ 282,012 $ 277,966 $ 260,000
142.69% 151.74'/a 158.36o/a 155.66"/o 193.78'/a
101
Ifl
447
City of South Gate
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years+
California Public Empioyees' Retirement System ("CalPERS") Safety Pian Measurement Period
Proportion of the Net Pension Liability
Proportionate Share of the Net Pension Liability
Covered Payroll
Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
2023-24 2022-23 2021-22 2020-21 2019-20
0.60387'/o O.60966'/o O.66015'!/o O.69752'/o O.53651o/a $ 69,440,275 $ 70,402,896 $ 66,510,995 $ 40,036,851 $ 58,37 4,278 $ 14,815,470 $ 13,177,044 $ 12,341,610 $ 8,592,734 $ 8,357,626 468.70'!/0
67.56%
534.28'/o
65.86'/o
538.92'!/a
66.77'/a
465.94%
78.92'/o
698.46o/a
68.41%
102
/':2-0
448
City of South Gate
Required Supplementary Information
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Safety Plan Measurement Period
Proportion of the Net Pension Liability
Proportlonate Share of the Net Pension Liability
Covered Payroll
Proportionate Share of the Net Pension Liability as Percentage of Covered Payrol
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
2018-19 2017-18 2016-17 2015-16 2014-15
0.52584!'o O.52052'!/o O.49939'/o O.50255'!/o O.49730'/0 $ 53,883,494 $ 50,159,050 $ 49,525,601 $ 43,486,293 $ 34,133,907 $ 8,138,937 $ 8,109,044 $ 7,968,440 $ 7,367,602 $ 7,077,495 662.05'/a
70.22'/a
618.56!'o
71.l8o/o
621.52%
70.47'/0
590.24'/(1
7l.79o/o
482.29'/0
77.47%
103
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449
City of South Gate
Required Supplementary Information
Schedule of Contributions - Pensions
For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Fiscal year 2024-25 2023-24 2022-23 2022-22 2020-21 Actuarially determined contribution $ 5,679,517 $ 5,626,076 $ 5,816,585 $ 5,234,731 $ 4,879,335 Contributions in relation to the
actuarially determined contributions (5,679,517) (5,626,076) (5,816,585) (5,234,731) (4,879,335) Contribution deficiency (excess) $ - $ - $ - $ - $
Covered payroll I $22,244,505 $23,564,125 $15,962,851 $17,709,348 $16,037,124 Contributions as a percentage
ofcovered payroll I 25.53o/o 23.88'/o 36.44'Vo 29.56% 25.06'/o I Covered Payroll represented above is based on pensionable earnings provided by the employer.
Notes to Schedule
Valuation date:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were from the June 30, 2022 public agency valuations.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Actuarial Cost Method Amortization method/period Level percentage of payroll Asset valuation method Fair va(ue of assets
Inflation 2.30'/o
Salary increases Varies by entry age and service
Payrollgrowth 2.80'/o
Investment rate of return 6.80'/o net of pension plan investment and administrative expenses; includes inflation.
Retirement age The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality 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'/o of Scale MP-2020 published by the Society of Actuaries.
104
/";) Z
450
City of South Gate
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially determined contribution $ 4,439,314 $ 3,679,801 $ 3,025,649 $ 2,807,597 $ 2,371,025 Contributions in relation to the actuarially
determined contributions (4,439,314) (3,679,801) (3,025,649) (2,807,597) (2,371,025) Contribution deficiency (excess) $ - $ - $ - $ - $
Covered payroll I $15,607,907 $ 15,190,177 $ 14,926,282 $ 13,777,340 $ 13,452,475 Contributions as a percentage of
1 covered payroll 28.44o/o 24.22'/o 20.27o/o 20.38o/o 17.63'/0 105
l ';)'2:
451
City of South Gate
Required Supplementary Information
Schedule Of Contrtbutlons - Penstons (Contfnued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Safety Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21 Actuarially determined contribution $ 7,657,403 $ 6,352,315 $ 6,758,712 $ 6,175,454 $ 4,902,949 Contributions in relation to the
actuarially determined contributions (7,657,403) (6,352,315) (6,758,712) (6,175,454) (4,902,949) Contribution deficiency (excess) $ - $ - $ - $ - $
Covered payroll 2 $ 14,331,594 $ 14,815,470 $ 13,177,044 $ 12,341,610 $ 8,592,734 Contributions as a percentage
of covered payroll 53.43o/o 42.88'!/o 51.29'/o 50.04o/o 57.06'/[) I Covered Payroll represented above is based on pensionable earnings provided by the employer.
Notes to Schedule
Valuation date:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024-25 were from the June 30, 2022 public agency valuations.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Actuarial Cost Method Amortization method/period Level percentage of payroll Asset valuation method Fair value of assets
Inflation 2.30'!/o
Salary increases Varies by entry age and service
Payrollgrowth 2.80o/o
Investment rate of return 6.80'/o net of pension plan investment and administrative expenses; includes inflation.
Retirement age The probabilities of retirement are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality 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'/O of Scale MP-2020 published by the Society of Actuaries.
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452
City of South Gate
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Safety Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially determined contribution $ 4,902,949 $ 4,957,802 $ 4,399,729 $ 3,802,971 $ 3,802,971 Contributions in relation to the
actuarially determined contributions (4,902,949) (4,957,802) (4,399,729) (3,802,971) (3,802,971) Contribution deficiency (excess) $ - $ - $ - $ - $
Covered payroll I $ 8,357,626 $ 8,138,937 $ 8,109,044 $ 7,968,440 $ 7,367,602 Contributions as a percentage of
1 covered payroll 57.06'/o 59.28'/0 54.06'/0 46.90'/o 47.73'Vo 107
453
City of South Gate
Required Supplementary Information
Scheduie of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
PARS - Supplemental Retirement Plan
Fiscal year 2024-25 2023-24 2022-23 2021-22 2020-21 Actuarially determined contribution $ 77,820 $ 56,817 $ 65,369 $ 114,778 $ 109,307 Contributions in relation to the actuarially
determined contributions (80,009) (78,989) (90,510) (93,404) (96,005) Contribution deficiency (excess) $ (2,189) $ (22,172) $ (25,141) $ 21,374 $ 13,302 Covered payroll $ 143,856 $ 139,938 $ 158,424 $ 147,697 $ 142,716 Contributions as a percentage of covered
payroll 55.62"!/0 56.45'/o 57.13% 63.24o/o 67.27%
Notes to Schedule
Valuation date: June 30, 2023
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Cost of living adjustment
Investment rate of return
Retirement age
Mortality
Entry Age Normal
Closed period, level percent of pay
Fair value
2.30o/o
Varies by entry age and service
2.30o/o
6.60o/o
Consistent with Non-Industrial rates used to value the Miscellaneous CalPERS Pension Plans.
Consistent with Non-Industrial rates used to value the Miscellaneous CalPERS Pension Plans.
108
454
City of South Gate
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2025
Last Ten Fiscal Years
PARS - Supplemental Retirement Plan
Fiscal year 2019-20 2018-19 2017-18 2016-17 2015-16
Actuarially determined contribution
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
Covered payroll
92,251 $ 71,442 $ (3,073) $ 65,461 $ 61,230
(101,362) (89,422) (89,262) (92,402)
$ 321,270 $ 312,672 $ 289,767 $ 282,012 $ 277,966
Contributions as a percentage of covered
payroll 31.55'/o 28.60'/ti O.OOo/o 31.65o/a 33.24'/0
109
/27
455
City of South Gate
Required Supplementary Information
Scheduie of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2025
Last Ten Fiscal Years
Measurement Period
Senice cost
Interest on total OPEB liability
Differences between expected and actual experience
Changes in assumptions
Implicit Subsidy Credit
Benefit payments, including refunds of employee contributions Net change in total OPEB liability
Total OPEB liabi(ity - beginning
Total OPEB liability - ending (a)
2023-24
$ 1,163,320
1,193,542
118,145
(949,996)
(275,144)
(923,733)
326,134
30,356,8')3
$ 30,683,027
2022-23
$ 908,615
937,686
7,825,900
(3,254,055)
(268,800)
(859,552)
5,289,794
25,067,099
$ 30,356,893
2021-22
$ 1,324,575
597,331
(70,977)
(6,152,215)
(231,883)
(604,243)
(5,137,412)
30,204,511
$ 25,067,099
2020-21
$ 1,342,086
731,487
(3,057,982)
3,139,649
(245,510)
(714,004)
1 ,224,726
2 8,979,785
$ 30,204,511
2019-20
$ 1,093,910
809,810
(89,563)
2,719,276
(190,665)
(473,890)
3,868,878
25,110,907
$ 28,979,785
Plan flduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments
Recognized difference in proportion
Plan to plan resources movement
Administratlve expense
$ 1,298,403 $ 1,198,877 $ 1,128,352 $ 836,126 $ 473,8% (1,298,403) (1,198,877) (1,128,352) (836,126) (473,890) Net change in plan flduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net OPEB liability - ending (a)-(b)
$-$-$-$-$
$ 30,683,027 $ 30,356,893 $ 25,067,099 $ 30,204,511 $ 28,979,785 Plan fiduciary net position as a percentage of the
kOtal OPEB liabilik7 0.00'/o O.OO'Vo O.00'/o O.OO'VO O.00'/O Covered-employee payroll $ 28,370,215 $ 24,512,390 $ 23,242,786 % 23,961,037 $ 23,319,744 Net OPEB lia5ilit7 aS a percentage ofcovered"employee payroll 108.15'/o 123.84')'o l07.85o/o 126.06'/o 120.88'/o a Historical information is presented only for periods for which GASB 75 is implemented. The first year of implementation is 2016-17.
The City has not established a trust for the purpose of holding assets accumulated for plan benefits. 110
456
City of South Gate
Required Supplementary Information
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2025
Measurement Period
Service cost
Interest on total OPEB liability
Differences between expected and actual experience Changes in assumptions
Implicit Subsidy Credit
Benefit payments, including refunds of employee contributions Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
Last Ten Fiscal Years
2018-19
$ 1,094,006
1,147,746
(6,638,431)
(652,631)
(902,892)
(5,952,202)
31,063,109
$ 25,110,907
2017-18
$ 1,102,741
1,064,551
(526,077)
(834,408)
806,807
30,256,302
$ 31,063,109
2016-17'
$ 1,071,923
1,036,683
(1,503,666)
650,700
(539,170)
(260,590)
455,880
29,800,422
$ 30,256,302
Plan fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments
Recognized difference in proportion
Plan to plan resources movement
Administrative expense
Net change In plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
$ 902,892
(902,892)
$834,408 $ 799,760
(834,408) (799,760)
Net OPEB liability - ending (a)-(b) $ 25,110,907 $ 31,063,109 $ 30,256,302 Plan flduciary net position as a percentage of the
total OPEB liability
Covered-employee payroll
Net OPEB liability as a percentage of covered-employee payroll O.OOo/o O.00'/O O.OO%
$ 22,695,615 $ 20,739,803 $ 20,184,723
110.64'/o 149.78'/o 149.90"/o
1 Historical information is presented only for periods for which GASB 75 is implemented. The first year of implementation is 2016-17.
The City has not established a trust for the purpose of holding assets accumulated for plan benefits. ill
t2"7
457
City of South Gate
Required Supplementary Information
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
Last Ten Fiscal Years
Fiscal year
Actuarially determined contribution
Contributions in relation to the actuarially
Contribution deficiency (excess)
Covered-employee payroll "
Contributions as a percentage of covered payroll
2024-25
$ 1,298,403
(1,298,403)
2023-24
$ 1,198,877
(1,198,877)
$-
2022-23
$ 1,128,352
(1,128,352)
2021-22
$ 836,126
(836,126)
2020-21
$ 752,739
(930,513)
$ (177,774)
$ 38,379,595 $ 28,370,215 $ 24,512,390 $ 23,242,786 $ 23,961,037
3.38"!/o 4.23o/a 4.60% 3.60o/a 3.88o/a
' Historical information is presented only for
" Payroll from prior year was assumed to increase by the 2.75o/o payroll growth assumption.
Notes to Schedule
Valuation date: June 30, 2023
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
DiscountRate 4.09'Vo
Inflation 2.30'/o
Healthcare Cost Trend Rate 4.17'/ri trending down to 4.14% over 51 years Salaryincreases 2.80%
Retirement age
Mortality
According to the retirement rates under the most recent CalPERS pension plan experience study.
According to the mortality rates under the CalPERS pension plan updated to reflect the most recent experience study
112
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458
City of South Gate
Required Supplementary Information
Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2025
Fiscal year
Actuarially determined contribution
Contributions in relation to the actuarially
Contribution deficiency (excess)
Covered-employee payroll '
Contributions as a percentage of covered payrol
2019-20
$ 752,739
(664,556)
$ 88,183
2018-19
902.892
(902,892)
2017-18
834 408
834 408)
$ 23,319,744 $ 22,695,615 $ 20,739,803
2.85'!/(1 3.98'/a 4.02%
' Historical information is presented only for
a Payroll from prior year was assumed to increase by the 2.75'/o payroll growth assumption.
Notes to Schedule
Valuation date: June30, 2023
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
DiscountRate 4.09'/o
Inflation 2.30'!/o
Healthcare Cost Trend Rate 4.17'/o trending down to 4.14'/o over 51 years Salaryincreases 2.80'/o
Retirement age
Mortality
According to the retirement rates under the most recent CalPERS pension plan experience study.
According to the mortality rates under the CalPERS pension plan updated to reflect the most recent experience study
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460
SUPPLEMENT ARY INFORMATION
115
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461
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Improvement Projects Fund
For the Year Ended June 30, 2025
EXPENDITURES:
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
18,167,598
18,167,598
87,365,813
87,365,813
29,932,605
29,932,605
57,433,208
57,433,208
(18,167,598) (87,365,813) (29,932,605) 57,433,208
18,167,598 86,854,641
18,167,598 86,854,641
$ - $ (511,172)
31,103,840 (55,750,801)
(2,284,596) 2,284,596
28,819,244 (55,750,801)
(1,113,361) $ 1,682,407
1,961,530
$ 848,169
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463
SPECIAL REVENUE FUNDS:
NON-MAJOR
GOVERNMENTAL FUNDS
Community Deveiopment Block Grant Fund - This fund accounts for revenues received from the u.s.
Department of Housing and Urban Development for housing rehabilitation and other community Housing Authority Fund - This fund is used to account for Housing and Urban Development for housing assistance (Section revenues from the u.s. Department of
8) payments to eligible participants.
HOME Pragram Fund - This fund accounts for revenues received from the u.s. Department of Housing and Urban Development's Affordable Housing program to assist low income households.
Housing Successor Fund
Development Commission.
This fund accounts for the housing assets of the former Community law Enforcement Grants Fund - This fund accounts for revenues received from federal, state and local law enforcement grants to be used for public safety.
West Santa Ana Branch TOD SIP Fund - This fund accounts for master !and use planning around the two stations in South Gate. Will include not only uses but elements like first and last mile amenities.
Air Quality Improvement Fund - This fund accounts for local revenue received from the South Coast Air Quality Management District to be used for ctean air programs.
TDA Bikeway Fund - This fund accounts for revenue received on a per capita basis From funds administered by Los Angeles County Metropolitan Transportation Authority (MTA).
Gas Tax Fund - This fund accounts for gas tax and other transportation revenues received from the State for construction and maintenance of streets and roads.
Street Sweeping Fund - This fund accounts for street sweeping fees used to fund the City's street sweeping and storm drain maintenance.
Prop A Transit Fund - To account for revenues received from a one-half cent sales tax collected by L.A.
County Metro and distributed to cities for use in transportation service and transportation-related Prop C Transit Fund - This fund accounts for revenues received from a one-half cent sales tax collected by L.A. County Metro and distributed to cities for use in street improvement projects along major bus UDAG Fund - This fund accounts for former Urban Development Assistance Grant funds (UDAG) that the City uses for community development projects.
Public Access Corporation Fund - This Fund accounts for revenues previously received from the City's cable television operator through a franchise agreement. This nonprofit corporation was established to promote community access throuqh media.
118
464
SPECIAL REVENUE FUNDS (Continued):
NON-MAJOR
GOVERNMENT AL FUNDS
Street Lighting & Landscaping Fund - This fund accounts for revenues received through a citywide street lighting assessment for street lighting and traffic signal maintenance.
Measure R Transit Fund - This fund accounts for revenues received from a one-half cent sales tax collected by L.A. County Metro and distributed to cities for use in transportation, street and road improvements.
Road Repair & Accountability Act Fund - This fund accounts for revenues received from the 12 cent gasoline tax, 20 cent diesel Fuel tax, and $100 vehicle registration tax collected by the State of California, Department of Transportation and distributed to Cities for the purpose of repairing roads, improving traffic safety, and expanding public transit systems across the state.
Measure M Transit Fund - This fund
by L.A. County Metro and distributed
projects.
accounts for revenues received from a 1/2 cent sales tax collecied to cities for use in transportation, street and road improvement Park Enhancement Fund - This fund accounts for revenues received from the lease of the goal soccer and batting cage facilities, cell tower, and other sources collected by the City for use in park improvement projects.
CASp Fund - This fund accounts for revenues received under the SB 1186 ($1) and the SB 1379 ($4) State legislation that assesses a fee when business licenses and equivalent permits are issued or renewed.
The CASp program is designed to meet the public's need for experienced, trained, and tested individuals (Certified Access Specialists) who can inspect buildings and sites for compliance with applicable state and federal construction standards.
Measure W Stormwater Fund - This fund accounts for revenues generated from Measure W is used to for regional and municipal projects that improve water quality, prepare for future drought, and provide community benefits such as parks or wetlands. The City uses funds for storm water projects in compliance with the MS4 permit.
Used Oil Recycling Program Fund- This fund is to account for the revenue derived from oil recycling grants awarded by the CalRecycle.
Beverage Container Recycling Program Fund - The California Department of Resources Recycling and Recovery (CalRecycle) administers the California Beverage Container Recycling and Litter Reduction Act which governs the recycling of California Redemption Value (CRV) beverage containers. The primary goal of the recycling program is to achieve an 80'/o recycling rate for all aluminum, glass, plastic, and bi-metal Road Mitigation Program Fund - These are funds derived from an impact fee placed upon new development as a way to mitigate the developments impact to the wear and tear upon city streets.
Housing Authority - Development Fund This fund is to account for acquisition of new development properties use for housing projects.
Permanent Local Housing Allocation Grant Fund- This fund is to account for revenues received from California Department of Housing and Community Development for Accessory Dwelling Units and affordable housing developments.
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465
SPECIAL REVENUE FUNDS (Continued):
NON-MAJOR
GOVERNMENTAL FUNDS
Emergency Housing Voucher (EHV) Fund - This fund is to account for the HUD grant allocations specific to assisting emergency housing needs. It is a housing voucher program to assist for emergency housinq for homelessness durinq the pandemic.
Integrated Waste Management Fund - This fund is to account for tracking AB 939 compliance fees by solid waste haulers.
58 2 Grant Fund - This fund is to account for SB shortage, high housing costs, and supply of affordable 2 allocations from the state in addressing housing
homes within City limits.
LEAP Grant Fund - This fund is to account for the LEAP grant revenues to assist with availability of affordable homes and ending the homelessness.
American Rescue Plan Act (ARPA) Fund - This fund is account for expenditures related to the funds received through this source by the U.S Treasury. These funds must be used for specific purposes outlined in the Act and promulgated by regulations issued by the U.S Treasury. Funds must be spent by December 31, 2024 or legally obligated. In no case shall be funds be allow to be expended beyond December 31, 2026. All revenue and expenditure elements caused or impacted by the Coronavirus Disease 2019 (COVID-19) pandemic since January 2020 through December 2024 are generally covered by the ARPA. 120
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City of South Gate
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Loans
Interest
Due from other governments
Property held for resale
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities deferred inflows of
resources, and fund balances
Special Revenue
Community
Development
Block Grant
$ 3,614
450
1,244,235
962,587
$ 2,210,886
Housing
Authority
HOME
Program
Housing
Successor
Law
Enforcement
Grants
$ 304,735 $ 578,237 $ $ 3,354,047
110,437
14,415
487
64,594
5,941,409
17,758
638,922
164 14,831
28,752
3,150,000
$ 494,668 $ 6,519,646 $ 3,806,844 $ 3,397,630
$ 280,787
132,431
891,262
1,304,480
$ 229,038 $ 14,371 $ 9,475 $ 118,975
2,508
313,435
23,054
275,202 188,415 93,945
504,24€) 330,314 220,944 212,920
52,052
52,052
7,258
7,258
906,406
906,406
6,137,280 3,585,900 3,177,452
(9,572)
(9,572) 6,137,280 3,585,900 3,177,452
$ 2,210,886 $ 494,668 $ 6,519,646 $ 3,806,844 $ 3,397,630 (Continued)
121
467
City of South Gate
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Loans
Iriterest
Due from other governments
Property held for resale
Total assets
Special Revenue
West Santa
Ana Branch
TOD SIP
Air Quality
Improvement
TDA
Bikeway
$ 16,946 $ 316,568 $
74 1,863
32,277
$ 17,020 $ 350,708 $
Gas Tax
Street
Sweeping
$ 2,277,639 $ 47,066
337 136,329
11,087
218,858
918
$ 2,507,921 $ 184,313
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances From other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
17,020
17,020
$ 17,020 $
350 708
350 708
350,708 $
87,756
87,756
(87,756)
(87,756)
$ 449,998 $ 33,320
-i4,293
524,291 33,320
1,983,630 150,993
1,983,630 150,993
$ 2,507,921 $ 184,313
(Continued)
122
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468
City of South Gate
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables :
Accounts
Loans
Interest
Due from other governments
Property held for resale
Total assets
Special Revenue
Prop A
Transit
Prop C
Transit
Public
Access Street Lighting
UDAG Corporation & Landscaping
$ 8,677,714 $ 4,328,552 $ 447,095 $109,720 $
9,148
35,788 30,503 1,958 475
$ 8,713,502 $ 4,359,055 $ 449,053 $119,343 $
6 092
9,856
34 717
50,665
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
$ 248,135 $ 32,964 $
248,135 32,964
$ 1,761 $ 113,254
74,878
1,761 188 132
8,465,367 4,326,091 449,053 117,582
(137,467)
8,465,367 4,326,091 449,053 117,582 (137,467)
$ 8,713,502 $ 4,359,055 $ 449,053 $119,343 $ 50,665 (Continued)
123
tc/l
469
City of South Gate
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables:
ACCOuntS
Loans
Interest
Due from other governments
Property held for resale
Total assets
Special Revenue
Measure R
Transit
Road Repair &
Accountability
Act
Measure M
Transit
Park
Enhancement CASp
$ 2,654,365 $ 4,056,086 $ 2,216,041 $ 1,751,545 $ 123,775 5 911
13,176 19,164 10,408 7,502 520
3,789 445,925 -
$ 2,671,330 $ 4,521,175 $ 2,226,449 $ 1,764,958 $ 124,285
LIABILITIES, DEFERRED INFLOWS OF
RESOuRCES, AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
$ 154,425 $ $ 107,717 $ -$
448
154 425 107,717 448
3,789
3,789
2,513,116 4,521,175 2,118,732 1764 510 124,285
2,513,116 4,521,175 2,118,732 1,764,510 124,285
$ 2,671,330 $ 4,521,175 $ 2,226,449 $ 1,764,958 $ 124,285 124
j(-/%
470
City of South Gate
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
Special Revenue
Beverage
Container Housing
Measure W Used Oil Recycling Recycling Road Mitigation Authority Stormwater Program Program Program Development
ASSETS
Cash and investments
Receivables:
Accounts
Loans
Interest
Due from other governments
Property held for resale
Total assets
$ 1,601,539 $ 543 $ 61,426 $ 289,549 $
2,834 210 8,016
$ 1,604,373 $
1,800,000
543 $ 61,636 $ 297,565 $ 1,800,000
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
$ 96,145 $ 14,383 $ 23,014 $ $ 5,023
96,145 14,383 23,014
188,412
1 ,813,000
2,006,435
1,508,228 38,622 297,565
1,508,228
(13,840)
(13,840) 38,622 297,565
(206,435)
(206,435)
$ 1,604,373 $ 543 $ 61,636 $ 297,565 $ 1,800,000
125
471
City of South Gate
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivabfes:
Accounts
Loans
Iriterest
Due from other governments
Property held for resale
Total assets
Permanent
Local Housing
Allocation Grant
Emergency
Housing
Voucher
Special Revenue
Integrated
Waste
Management
$ 63,686 $ 586,249 $
40,644 54,738
1,956
16,452
$ 16,452 $ 104,330 642,943 $
SB 2
Grant
LEAP
Grant
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
764 $ 5,059 $
764 5,059
16,452
16 452
9,678
9,678
89,593
(764)
(764) 89,593
$ 16,452 104,330
642,943
642,943
642,943 $
285,368
285,368
(285,368)
(285,368)
126
/titl
472
City of South Gate
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables:
Accounts
Loans
Interest
Due from other governments
Property held for resale
Total assets
Special Revenue
American
Rescue Plan
Act Fund
Total
Nonmajor
Governmental
Funds
$ 4,795,113 $ 38,667,942
53,064
385,608
7,838,981
214,988
1,807,951
4,950,000
$ 4,848,177 $ 53,865,470
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Retention payable
Unearned revenue
Deposits
Due to other funds
Advances from other funds
Total liabilities
Deferred inflows of resources:
Unavailable revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
203,647
4,509,250
4,712,897
$ 2,142,255
2,956
5,029,409
23,054
2,085,238
1,813,000
11,095,912
89,229
89,229
135,280
135,280
43,421,531
(741,202)
42,680,329
$ 4,848,177 $ 53,865,470
(Conduded)
127
/'/r
473
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue
Community
Development
Block Grant
Housing
Authority
HOME
Program
REVENUES:
Taxes
Licenses and permits
Intergovernmenta
Charges For services
Use of money and property
Miscellaneous
2,519,283 6,624,030
2,143
Total revenues 2,519,283 6,626473
EXPENDITURES :
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service :
Principal
Interest and fiscal charges
Total expenditures
1,066,068 6,739,005
1,066,068 6,739,005
138,614
138,614
REVENUES OVER
(UNDER) EXPENDITURES 1,453,215 (112,832) (138,614)
OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
(1,539,170)
(1,539,170)
CHANGES IN FUND BAtANCES (85,955) (112,832) (138,614) FUND BALANCES (DEFICIT):
Beginning of year, as previously presented
Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
Endofyear $
992,361
992,361
906,406
103,260 6,275,894
103,260 6,275,894
$ (9,572) $ 6,137,280
Housing
Successor
Law
Enforcement
Grants
21,753
21,753
1,528,358
129,389
10,304
1,668,051
19,807
754742
366164
147,705
9,280
19,807 1,277,891
1,946 390,160
100,824
100,824
1,946 490,984
3,583,954 2,686,468
3,583,954
$ 3,585,900
2,686,468
$ 3,177,452
(Continued)
128
l(-!(n
474
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue
West Santa
Ana Branch
TOD SIP
Air Quality
Improvement
TDA
Bikeway Gas Tax
Street
Sweeping
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
123,601
667
667
17 783
124,800 2,569,131
95,444
716,668
11,575
Total revenues 141,384 124,800.00 2,664,575 728,243
EXPENDITURES:
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
8,092
265 953
274,045
2,636,191 961,871
2,636,191 961,871
REVENUES OVER
(UNDER) EXPENDITURES 667 (132,661) 124,800.00 28,384 (233,628) OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
(35,000)
(35,000)
179,136
(53,936)
125,200
(259,999)
(259,999)
CHANGES IN FUND BALANCES 667 (167,661) 250,000 (231,615) (233,628) FUND BALANCES (DEFICIT):
Beginning of year, as previously presented
Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
Endofyear $
16,353
16 ,353
17 ,020
518,369
518,369
$ 350,708
(337,756) 2,215,245
(337,756) 2,215,245
$ (87,756) $ 1,983,630
384,621
384,621
$ 150,993
(Continued)
'i:g
/ I l.-"i
475
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonrriajor Governmental Funds
For the Year Ended June 30, 2025
Special Revenue
Prop A
Transit
Prop C
Transit UDAG
Public
Access
Corporation
Street Lighting
& Landscaping
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
2 ,590,749
93,363
3 96,546
2,015,988
273,926 17,583
:ig,on
4,048
$ 2,003,582
Total revenues 3,080,658 2,289,914 17,583 43,059 2,003,582 EXPENDITURES:
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Tota( expenditures
2,120,237
231,282
2,120,237 231,282
29,852
3,272,849
76,364
29,852 3,349,213
REVENUES OVER
(UNDER) EXPENDITURES 960 421 2,058,632 17,583 13,207 (1,345,631) OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
(3,488,900)
(3,488,900)
1,208,164
1,208,164
CHANGES IN FUND BALANCES 960 421 (1,430,268) 17,583 13,207 (137,467) FUND BALANCES (DEFICIT):
Beginning of year, as previously presented 7,504,946 Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
Endofyear $
7,504,946
8,465,367
5,756,359
5,756,359
$ 4,326,091
431,470
431,470
$ 449,053
104,375
104,375
$ 117,582 $ (137,467)
(CoMmued)
130
rll9,
476
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Measure R
Transit
Road Repair &
Accountability
Act
Special Revenue
Measure M
Transit
Park
Enhancement CASP
REVENUES:
Taxes
Licenses and permits
Intergovernmenta
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
1,511,711
143,813
1,655,524
2,530,491
182,447
2,712,938
1,196,575
1,196,575
458 949 2,712,938
(437,074)
(437,074)
(1,509,89 4)
(1,509,894)
CHANGES IN FUND BALANCES 21,875
FUND BALANCES (DEFICIT):
Beginning of year, as previous!y presented 2,491,241 Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
End of year
2,491,241
$ 2,513,116
1,203,044
3,318,131
3,318,131
$ 4,521,175
1,712,719
104,069
1,816,788
1,772,059
1,772,059
44 729
(264,183)
(264,183)
(219,454)
2,338,186
2,338,186
$ 2,118,732
287 199
65 737
352,936
33,622
33,622
319,314
(g,goz)
(9,907)
309,407
1,455,103
1,455,103
$ 1,764,510
12,024
4,383
16,407
16,407
16,407
107,878
107,878
$ 124,285
131
/ 1,4C1
477
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nanmajar Governmental Funds
For the Year Ended Jurie 30, 2025
Special Revenue
Measure W
Stormwater
Beverage Container
Used Oil Recyclim;l Road Mitigation
Recycling Program Program Program
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges For services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses',
985,917
30,371
13,216 23,401
1708 86 124
CHANGES IN FUND BALANCES
FUND BALANCES (DEFICIT):
Beginning of year, as previously preser
Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
Endofyear $
1,016,288 13,216.00
519 746
519,746
496,542
27,006
27,006
(13,790)
973,431 12,967
(171,818)
801,613 12,967.00
1,298,155
210,073
210,073
1,508,228 $
(823)
(13,017)
(13,017)
(13,840) $
25 109 86,124
29,809
29,809
(4,700) 86 124
(1,589,57 4)
(1,589,574)
(4,700) (1,503,450)
43,322 1,801,015
43,322 1,801,015
38,622 $ 297,565 $
Housing
Authority
Development
16,093
16,093
(16,093)
(16,093)
(xgo,a+z)
(190,342)
(206,435)
132
478
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Permanent
Local Housing
Allocation Grant
Emergency
Housing
Voucher
Special Revenue
Integrated
Waste
Management
SB 2
Grant
LEAP
Grant
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES :
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
4 465
4 465
(4,465)
26,337
26,337
420,606
420,606
314,389
11,204
325,593
397,032
397,032
23,574 325,593
202,953
202,953
69,286
69,286
(69,286)
CHANGES IN FUND BALANCES 21,872 23,574 325,593 202,953 (69,286) FUND BALANCES (DEFICIT):
Beginning of year, as previously presented
Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
Endofyear $
(22,636)
(22,636)
(764) $
66,019
66,019
89,593
317,350 (202,953)
317,350 (202,953)
$ 642,943 $
(216,082)
(216,082)
$ (285,368)
133
/S"/
479
City of South Gate
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Police
Community development
Parks & recreation
Public works
Capital outlay
Debt service:
Principal
Interest and Fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Issuance of lease
Transfers in
Transfers out
Total other financing sources (uses)
CHANGES IN FUND BALANCES
FUND BALANCES (DEFICIT):
Beginning of year, as previously presented
Change within financial reporting entity
(major to nonmajor)
Beginning of year, as adjusted
End of year
Special Revenue
American
Rescue Plan
Act Fund
Total
Nonmajor
Governmental
Funds
9 ,777,251
390,614
10 ,167,865
$ 2,003,582
12,024
35,385,641
1,136,241
1,991,327
10,304
40,539,119
9,282,548
494,702
9,312,400
1,249,444
10,578,699
33,622
10,647,388
632,117
9,777,250
224,069
9,280
32,687,019
390,615 7,852,100
(1,168,527)
(1,168,527)
100,824
2,602,988
(10,527,982)
(7,824,170)
(777,912) 27,930
41,739,207
g+:i,ig;
913,192
135,280
913,192
<z,652i399
$ 42,680,329
(Concluded)
134
l< ->
480
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Total revenues
$ 1,245,005
1,245,005
$ 1,245,005
1,245,005
$ 2,519,283
2,519,283
$ 1,274,278
1,274,278
EXPENDITURES:
Current:
Community development
Total expenditures
851,731
851,731
1,436,771
1,436,771
1,066,068
1,066,068
370 703
370,703
REVENUES OVER
(UNDER) EXPENDITURES 393,274 (191,766) 1,453,215 1,644,981 OTHER FINANCING (USES):
Transfers out
Total other financing sources (uses)
(1,080,769)
(1,080,769)
(1,539,170)
(1,539,170)
(458,401)
(458,401)
CHANGE IN FUND BALANCE $ 393,274 $ (1,272,535) (85,955) $ 1,186,580 FUND BALANCE:
Beginning of year
End of year
992,361
$ 906,406
135
481
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Authority Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 5,875,600
7,000
5,882,600
$ 5,875,600
7,000
5,882,600
$ 6,624,030
2,143
6,626,173
$ 748,430
(4,857)
743,573
EXPENDITURES:
Current:
Community development
Total expenditures
6,291,666
6,291,666
5,799,950
5,799,950
6,739,005
6 739 005
(939,055)
(939,055)
CHANGE IN FUND BALANCE $ (409,066) $ 82,650 (112,832) $ (195,482) FUND BALANCE:
Beginning of year
End of year
103,260
$ (9,572)
136
482
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HOME Program Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Total revenues
564,831 $
564,831
564,831 $
564,831
$ (564,831)
(564,831)
EXPENDITURES:
Current:
Community development
Total expenditures
579,562
579,562
816,916
816,916
138,614
138,614
678,302
678,302
REVENUES OVER
(UNDER) EXPENDITURES (14,731) (252,085) (138,614) 113,471 CHANGE IN FUND BALANCE (14,731) $ (252,085) (138,614) $ 113,471 FUND BALANCE:
Beginning of year
End of year
6,275,894
$ 6,137,280
137
483
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual H5iising Sutcesso-r Special Revenue Firnd
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
REVENUES:
Use of money and property
Total revenues
61,668 $
61,668
61,668 $
61,668
21,753 $
21,753
(39,915)
(39,915)
EXPENDITURES:
Current:
Community development
Total expenditures
120,544
120,544
120,544
120,544
19,807
19,807
100,737
100,737
REVENUES OVER
(UNDER) EXPENDITURES (58,876) (58,876) lt946 60,822
CHANGE IN FUND BALANCE $ (58,876) $ (58,876) 1,946 $ 60,822 FUND BALANCE:
Beginning of year
End of year
3,583,954
$ 3,585,900
138
/STh
484
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Law Enforcement Grants Special Revenue Fund
For the Year Ended June 30, 2025
REVENUES:
Intergovernmental
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:
Current:
Police
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
I 1,451,755
34,190
$ 1,707,332
34,190
1485 945 1,741,522
1,472,611
283,076
1,738,762
756,515
1,755,687 2,495,277
(269,7 42) (753,755)
$ (269,742) $ (753,755)
Budgeted Amounts Actual
Original Final Amounts
$ 1,528,358
129,389
10,304
1,668,051
754,742
366 164
147,705
9,280
1,277,891
390,160
Variance with
Final Budget
$ (178,974)
95,199
10,304
(73,471)
984 020
390,351
(147,705)
(9,280)
1,217,386
1,143,915
490,984 $ 1,244,739
2,686,468
$ 3,177,452
139
485
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual West Santa Ana Branch TOD SIP
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
667
667
667
667
EXPENDITURES:
Current:
Community Development
Total expenditures
159,658
159,658
159 658
159,658
CHANGE IN FUND BALANCE $ (159,658) 667 I i60,325
FUND BALANCE:
Beginning of year
End of year
16 ,353
17 ,020
140
486
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Oriqinal Final
Actua
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Tota revenues
$ 126,600 $
65,000
191,600
126,600 $
65,000
191,600
123,601 $
17,783
141,384
(2,999)
(47,217)
(50,216)
EXPENDITURES :
Current:
Community development
Capital outlay
Total expenditures
7,913
277,636
285,549
7,913
288,000
295,913
8,092
265,953
274,045
(179)
22,047
21,868
REVENUES OVER
(UNDER) EXPENDITURES (93,949) (104,313) (132,661) (28,348) OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
(35,000)
(35,000)
(35,000)
(35,000)
CHANGE IN FUND BALANCE $ (93,949) $ (139,313) (167,661) $ (28,348) FUND BALANCE:
Beginning of year
End of year
518,369
$ 350,708
141
/SI
487
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual TDA Bikeway Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Total revenues
95,120 $
95,120
95,120
95 120
$ 124,800 $
124,800
29,680
29,680
REVENUES OVER
(UNDER) EXPENDITURES 95,120 95 120 124,800 29,680
OTHER FINANCING (USES):
Transfers in
Transfers out
Total other financing (uses)
(228,128)
(228,128)
179,136
(53,936)
125,200
179,136
174,192
353,328
CHANGE IN FUND BALANCE 95,120 $ (133,008) 250,000 $ 383,008 FUND BALANCE:
Beginning of year
End of year
(337,756)
$ (87,756)
142
/& o
488
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Oriqinal Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 2,519,456
25,700
2,545,156
$ 2,519,456
25,700
2,545,156
$ 2,569,131
95,444
2,664,575
$ 49,675
69,744
119,419
EXPENDITURES:
Current:
Public works
Total expenditures
2,860,791
2,860,791
3,395,369
3,395,369
2,636,191
2,636,191
759,178
759,178
REVENUES OVER
(UNDER) EXPENDITURES (315,635) (850,213) 28,384 878,597 OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
(1,104,398)
(1,104,398)
(;sg,ggg)
(259,999)
844,399
844,399
CHANGE IN FUND BALANCE $ (315,635) $ (1,954,611) (231,615) $ 1,722,996 FUND BALANCE:
Beginning of year
End of year
2,215,245
$ 1,983,630
143
489
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Sweeping Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actua
Original Final Amounts
Variance with
Final Budget
REVENUES:
Charges for services
Use of money and property
Total revenues
703,000 $
6 ,400
7 09,400
703,000
6 ,400
7 09,400
$ 716,668
11,575
728,243
13,668
5,175
18,843
EXPENDITURES:
Public works
Total expenditures
943,002
943,002
941,794
941 794
961,871
961,871
(20,077)
(20,077)
CHANGE IN FUND BALANCE $ (233,602) $ (232,394) (233,628) $ (1,234) FUND BALANCE:
Beginning of year
End of year
384,621
$ 150,993
144
490
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop A Transit Special Revenue Fund
For the Year Ended June 30, 2025
REVENUES:
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES:
Current:
Community development
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts Actual
Oriqinal Final Amounts
Variance with
Final Budget
$ 2,888,818
92,300
97,500
8,500
3,087,118
2,886,886
2,986,886
100,232
$ 2,888,818
92,300
97,500
8,500
3,087,118
2,780,561
2,780,561
306,557
$ 2,590,749
93,363
396,546
3,080,658
2,120,237
2,120,237
960,421
$ (298,069)
1 ,063
2 99,046
(8,500)
(6,460)
660,324
660,324
653,864
100,232 $ 306,557 960,421 $ 653,864
7,504,946
$ 8,465,367
145
}(,,=3
491
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Prop C Transit Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 2,161,039
75,000
2,236,039
$ 2,161,039
75,000
2,236i039
$ 2,015,988
273,926
2,289,914
$ (145,051)
198,926
53,875
EXPENDITURES:
Current:
Public works
Total expenditures
594,002
594,002
644,002
644 002
231,282
231,282
412,720
412,720
REVENUES OVER
(UNDER) EXPENDITURES 1,642,037 1,592,037 2,058,632 466,595 OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
(5,393,983)
(5,393,983)
(3,488,900)
(3,488,900)
1,905,083
1,905,083
CHANGE IN FUND BALANCE $ 1,642,037 $ (3,801,946) (1,430,268) $ 2,371,678 FUND BALANCE:
Beginning of year
End of year
5,756,359
$ 4,326,091
146
l&U
492
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual UDAG Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Oriqinal Final Amounts
Variance with
Final Budget
REVENUES:
Use of money and property
Total revenues
6,500 $
6,500
6,500 $
6,500
17,583 $
17,583
11,083
11,083
EXPENDITURES:
Current:
Community development
Total expenditures
30,000
30,000
30,000
30,000
30,000
30,000
CHANGE IN FUND BALANCE (23,500) $ (23,500) 17,583 $ 41,083 FUND BALANCE:
Beginning of year
End of year
431,470
$ 449,053
147
/(,,r
493
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Access Corporation Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Charges for services
Use (loss) of money and property
Total revenues
60,000 $
500
60,500
60,000 $
500
60,500
39,011 $
4,048
43,059
(20,989)
3,548
(17,441)
EXPENDITURES:
Current:
General government
Total expenditures
18,845
18,845
18,845
18,845
29,852
29,852
(ii,ooz)
(11,007)
CHANGE IN FUND BALANCE 41,655 $ 41 655 13,207 $ (28,448) FUND BALANCE:
Beginning of year
End of year
104,375
$ 117,582
148
i(4
494
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting & Landscaping Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
Original Fina
Actual
Amounts
Variance with
Final Budget
REVENUES:
Taxes
Total revenues
$ 2,003,582
2,003,582
$ 2,003,582
2,003,582
EXPENDITURES:
Current:
Public works
Debt service:
Principal
Total expenditures
3,403,768 3,227,271 3,272,849 (45,578)
3,403,768 3,227,271
76,364
3,349,213
(76,364)
(121,942)
REVENUES OVER
(UNDER) EXPENDITURES (3,403,768) (3,227,271) (1,345,631) 1,881,640 OTHER FINANCING SOURCES (USES):
Transfers in
Total other financing sources (uses)
1,208,164
1,208,164
1,208,164
1,208,164
CHANGE IN FUND BALANCE $ (3,403,768) $ (3,227,271) (137,467) $ 3,089,804 FUND BALANCE:
Beginning oF year
End of year $ (137,467)
149
/h7
495
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Transit Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 1,620,780
16,000
1,636,780
$ 1,620,780
16,000
1,636,780
$ 1,511,711
143,813
1,655,524
$ (109,069)
127,813
18,744
EXPENDITURES:
Current:
Public works
Total expenditures
1,543,771
1,543,771
2,234,.725
2,234,725
1,196,575
1,196,575
1,038,150
1,038,150
REVENuES OVER
(UNDER) EXPENDITURES 93,009 (597,945) 458,949 1,056,894 OTHER FINANCING (USES) :
Transfers out
Total other financing (uses)
(857,956)
(857,956)
(437,074)
(437,074)
420,882
420,882
CHANGE IN FUND BALANCE 93,009 $ (1,455,901) 21,875 $ 1,477,776 FUND BALANCE:
Beginning of year
End of year
2,491,241
$ 2,513,116
150
496
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Road Repair & Accountability Act Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
Oriqinal Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 2,370,569
75,800
2,446,369
$ 2,370,569
75,800
2,446,369
$ 2,530,491
182,447
2,712,938
$ 159,922
106,647
266,569
EXPENDITURES:
Current:
Public works
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES 2,446,369 2,446,369 2,712,938 266,569 OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
(3,160,407)
(3,160,407)
(1,509,894)
(1,509,894)
1,650,513
1,650,513
CHANGE IN FUND BALANCE $ 2,446,369 $ (714,038) 1,203,044 $ 1,917,082 FUND BALANCE:
Beginning of year
End of year
3,318,131
$ 4,521,175
151
//, "f
497
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M Transit Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actua!
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 1,836,884
16,000
1,852,884
$ 1,836,884
16,000
1,852,884
$ 1,712,719
104,069
1,816,788
$ (124,165)
88,069
(36,096)
EXPENDITURES:
Current:
Public wor!,s
Total expenditures
i,gis,oa=+
1,913,034
1,941,850
1,941,850
1,772,059
1,772,059
169,791
169,791
REVENUES OVER
(UNDER) EXPENDITURES (60,150) (88,966) 44,729 133,695
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
(598,890)
(598,890)
(264,183)
(264,183)
334 707
334,707
CHANGE IN FUND BALANCE (60,150) $ (687,856) (219,454) $ 468,402 FUND BALANCE:
Beginning of year
End of year
2,338,186
$ 2,118,732
152
/7o
498
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Park Enhancement Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Oriqinal Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Charges for services
Use of money and property
Total revenues
291,593 $
16,000
307,593
291,593
16,000
307,593
$ 287,199
65,737
352,936
(4,394)
49,737
45,343
EXPENDITURES:
Current:
Parks & recreation
Total expenditures
103,958
103,958
103 958
103 958
33,622
33,622
70,336
70,336
REVENUES OVER
(UNDER) EXPENDITURES 203,635 203,635 319,314 115,679
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
(868,560)
(868,560)
(9,907)
(9,907)
858,653
858,653
CHANGE IN FUND BALANCE 203,635 $ (664,925) 309,407 $ 974,332 FUND BALANCE:
Beginning of year
End of year
1,455,103
$ 1,764,510
153
499
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual CASp Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
REVENUES:
Licenses and permits
Use of money and property
Total revenues
15,888 $
1,100
16,988
15,888 $
1,100
16,988
12,024 $
4,383
16,407
(3,864)
3,283
(581)
CHANGE IN FUND BALANCE 16,988 $ 16,988 16,407 $ (581) FUND BALANCE:
Beginnirig of year
End of year
107,878
$ 124,285
154
500
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Stormwater Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Oriqinal Final Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use of money and property
Total revenues
$ 1,009,259
17,700
1,026,959
$ 1,009,259
17,700
1,026,959
$ 985,917
30,371
1,016,288
(23,3",')
12,671
(10,671)
EXPENDITURES:
Current:
Public works
Total expenditures
519,746
519,746
(519,746)
(519,746)
REVENUES OVER
(UNDER) EXPENDITURES 1,026,959 1,026,959 496,542 (530,417) OTHER FINANCING (USES):
Transfers in
Transfers out
Total other financing (uses)
(299,625)
(299,625)
973,431
(171,818)
801,613
973,431
127,807
1,101,238
CHANGE IN FUND BALANCE $ 1,026,959 $ 727,334 1,298,155 $ 570,821 Beginning of year
End of year
210,073
$ 1,508,228
155
501
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Used Oil Recycling Program Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental 14,400 $ 14,400 $ 13,216 $ (1,184) Tota revenues 14,400 14 400 13,216 (1,184)
EXPENDITURES:
Current:
Public works
Total expenditures
27,006
27,006
(27,006)
(27,006)
REVENUES OVER
(UNDER) EXPENDITURES 14,400 14,400 (13,790) (28,190)
OTHER FINANCING SOURCES (USES):
Transfers in 12,967 (28,190)
Total other financing sources (uses) 12,967 12i967
CHANGE IN FUND BALANCE 14,400 $ 14,400 (823) $ (15,223) FUND BALANCE:
Beginning of year
End of year
(13,017)
$ (13,840)
156
n4
502
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Beverage Container Recycling Program Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actua
Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Use oT money and property
24,000 $
500
24,000 $
500
23,401 $
1,708
(sgg)
1,208
Total revenues 24,500 24,500 25,109 609
EXPENDITURES:
Current:
Public WORKS 29,809 (29,809)
Total expenditures 29,809 (29,809)
REVENUES OVER
(UNDER) EXPENDITURES 24,500 24,500 (4,700) (29,200)
CHANGE IN FUND BALANCE 24,500 $ 24,500 (4,700) $ (29,200) FUND BALANCE:
Beginning of year
End of year
43,322
38,622
157
503
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Road Mitigation Program Special Revenue Fund
For the Year Ended June 30, 2025
REVENUES:
Licenses and permits
Use of money and property
Total revenues
REVENUES OVER
(UNDER) EXPENDITUF)ES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
50,000 $
25,000
75,000
50,000 $
25,000
75,000
86,124
86,124
(50,000)
61,124
11,124
75,000 75,000 86,124 11,124
(1,734,474) (1,589,574) 144,900
(1,734,474) (1,589,574) 144,900
75,000 $ (1,659,474) (1,503,450) $ 156,024
1,801,015
$ 297,565
158
[7(,
504
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Authority - Development Projects Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
EXPENDITURES:
Current:
Community development
Total expenditures
$ 173,033 $ 173,033 $ 16,093 $ 156,940
173,033 173,033 16,093 156,940
REVENUES OVER
(UNDER) EXPENDITURES (173,033) (173,033) (16,093) 156,940 CHANGE IN FUND BALANCE $ (173,033) $ (173,033) (16,093) $ 156,940 FUND BALANCE:
Beginning of year
End of year
(190,342)
$ (206,435)
159
505
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Permanent Local Housing Allocation Grant Special Revenue Fund For the Year Ended June 30, 2025
EXPENDITURES:
Current:
Community development
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
74,400
74,400
74,400
74,400
(74,400) (74,400)
(248,210) (248,210)
(248,210) (248,210)
$ (322,610) $ (322,610)
Actual
AmountS
Variance with
5inal Budget
4,465
4 465
69,935
69,935
(4,465) 69,935
26,337
26,337
21,872 $
26,337
248,210
274,547
344,482
(22,636)
$ (764)
160
ng
506
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Emergency Housing Voucher Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
REVENUES:
Intergovernmental
Total revenues
$ 222,000 $ 222,000 $ 420,606 $ 198,606
222,000 222,000 420,606 198,606
EXPENDITURES:
Current:
Community development
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
CHANGE IN FUND BALANCE
200,ODD
200,000
200,000
200,000
397,032
397,032
(197,032)
(197,032)
22,000
22,000 $
22,000
22,000
23,574
23,574 $
1,574
1,574
FUND BALANCE:
Beginning of year
End of year
66,019
89,593
161
)7'1
507
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget arid Actual Integrated Waste Management Grant Special Revenue Fund For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
ActuaI
Amounts
Variance viith
Final Budget
REVENUES:
Current:
Intergovernmental
Use of money and praperty
$ 314,389 $
11,204
314,389
11,204
Total revenues 325,593 325,593
REVENUES OVER
(UNDER) EXPENDITURES 325,593 325,593
CHANGE IN FUND BALANCE 325,593 $ 325,593
FUND BALANCE:
Beginning of year
End of year
317,350
$ 642,943
162
/"80
508
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB 2 Grant Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
EXPENDITURES:
Current:
Community development
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in 202,953 202,953
Total other financing sources (uses) 202,953 2 €)2,953
CHANGE IN FUND BALANCE
FUND BALANCE:
202,953 $ 202,953
Beginning of year
End of year
(202,953)
163
509
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual LEAP Grant Special Revenue Fund
For the Year Ended June 30, 2025
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
EXPENDITURES:
Current:
Community development 69,286 $ (69,286)
Total expenditures 69,286 (69,286)
REVENUES OVER
(UNDER) EXPENDITURES (69,286) (69,286)
CHANGE IN FUND BALANCE (69,286) $ (69,286)
FUND BALANCE:
Beginning of year
End of year
(216,082)
$ (285,368)
164
510
City of South Gate
Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual American Rescue Plan Act Fund
For the Year Ended June 30, 2025
REVENUES:
Intergovernmental
Use of money and property
Total revenues
EXPENDITURES:
Current:
General government
Police
Total expenditures
REVENUES OVER
(tJNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers out
Total other financing sources (uses)
CHANGE IN FUND BALANCE
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
150,000
150,000
$ 9,777,251 $ 9,777,251
iso,ooo 390,614 240,614
150,000 10,167,865 10,017,865
5,670,000
5,670,000
7,834,554
7,834,554
9,282,548
494,702
9,777,250
(1,447,9%)
(494,702)
(1,942,696)
(5,520,000) (7,684,554) 390,615 8,075,169
(4,856,583)
(4,856,583)
$ (5,520,000) $ (12,541,137)
(1,168,527) 3,688,056
(1,168,527) 3,688,056
(777,912) $11,763,225
913,192
$ 135,280
165
511
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512
INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS have been established to finance and account for goods and services provided by one City department to other City departments or agencies:
Insurance Fund - To administer the City's self-insured workers' compensation, health insurance and general liability programs. The fund collects premiums From departments and employees, records the related liability and makes benefit payments through outside settlement agents.
Information Systems Fund - To account for the operations and maintenance costs or the City's Enterprise Resource Planning (ERP) systems and hardware used by all City departments.
Fleet Management Fund - To account for the regular maintenance and repair of all City-owned vehicles and other pieces of equipment.
Capital Asset & Equipment Replacement Fund - To account for the funding and replacement of the City's capital assets.
Building & Infrastructure Maintenance Fund - To account for the funding and maintenance of the City's buildings and infrastructure.
167
ty(
513
City of South Gate
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments
Accounts receivable
Accrued interest
Total current ASSETS
Noncurrent assets:
Capital assets:
Depreciable assets, net of accumulated depreciation Total capital assets, net
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Interest payable
Due to other funds
Compensated absences, due within one year
Claims and judgments, due within one year
Long-term debt, due within one year
Total OPEB liability, due within one year
Total current liabilities
Noncurrent liabilities:
Long-term debt, due in more than one year
Compensated absences, due in more than one year
Claims and judgments, due in more than one year
Net pension liability
Total OPEB Jiability, due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Insurance
$ 8,991,729
6,428
21,452
9,019,609
9,019,609
104,146
56,845
160,991
15 948
1,730
2,234,729
7,362
2,259,769
18,779
15 ,398,394
409,475
16 6,614
15,993,262
18,253,031
9,618
62,831
72,449
(9,144,880)
$ (9,144,880)
Information
Systems
Fleet
Management
Capital Asset
& Equipment
Replacement
$ 2,110,911 $ 1,295,619 $ 5,266,532
5,908
2,116,819
1 151 783
1 151 783
3,268,602
145,689
1 18 743
2 64 432
325,699
2,407
4,342
178,285
15,314
526,047
5,029
47,130
572,808
346,583
971,550
1,497,597
13,455
130,185
143,640
968,469
923,328
$ 1,891,797
3,980
1,299,599
646 935
646 935
1,946,534
238,390
194,521
432,911
60,299
898
4,091
20 148
24,989
110 425
24,892
44 414
937,280
565,545
1,572,131
1,682,556
22,017
211,649
233 666
601,895
(138,672)
$ 463,223
23,424
5,289,956
2,062,877
2,062,877
7,352,833
70,396
6,414
54,979
131 789
122,188
122,188
253 977
1,885,710
5,213,146
$ 7,098,856
168
514
City of South Gate
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2025
ASSETS
Current assets:
Cash and investments
Accounts receivable
Accrued interest
Total current assets
Noncurrent assets:
Capital assets:
Depreciable assets, net of accumulated depreciation Total capital assets, net
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pension plan Deferred outflows of resources related to OPEB
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Compensated absences, due within one year
Claims and judgments, due within one year
Long-term debt, due within one year
Total OPEB liability, due within one year
Total current liabilities
Noncurrent liabilities:
Long-term debt, due in more than one year
Compensated absences, due in more than one year
Claims and judgments, due in more than one year
Net pension liability
Total OPEB liability, due in more than one year
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows or resources related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Building &
Infrastructure
Maintenance Total
$ 3,000,000 $ 20,664,791
6,428
54,764
20,725,9833,000,000
649,008
649,008
3,649,008
4,510,603
4,51 €),603
25,236,586
488,225
370,109
858,334
25,925
539,435
498,267
9 719
539 435
10 163
2,234,729
253 412
47 665
565,360 3,593,390
565,360
152409
110,323
15,398,394
1,919,563
1,078,742
18,659,131
22,252,521
45,090
404 665
449,755
649,008
2,434,640
$ 3,083,648 $
4,105,082
(712,438)
3,392,644
169
Ig 7
515
City of South Gate
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES:
Interdepartmental charges
Total operating revenues
OPERATING EXPENSES:
Personnel services
Utilities
Contractual services
Administrative services
Repair and maintenance
Supplies
Insurance
Claim expense
Depreciation expense
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES:
Interest expense
Interest income (loss)
Total nonoperating revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS:
Transfers in
Transfers out
Total transfers
Changes in net position
NET POSITION:
Beginning of year, as previously reported
Change in accounting principle (GASB 101)
Beginning oF year, as restated
End of year
Insurance
Information
Systems
Fleet
Management
Capital Asset
& Equipment
Replacement
$ 8,597,593 $ 1,964,212 $ 1,989,035 $ 581,324
8,597,593 1,964,212 1,989,035 581,324
393,289
159,039
88,169
2,023
6,210,611
5,434,557
12,287,688
(3,690,095)
186,675
186,675
(3,503,420)
(3,503,420)
(51642,915)
1,455
(5,641,460)
$ (9,144,880')
708,560
14,582
241,782
180,725
270,317
13,782
365,860
1,795,608
168,604
(7,731)
44,479
36,748
205,352
205,352
il693,927
(7,482)
1,686,445
$1,891,797
940,353
157,266
172,490
21,290
831,554
50,987
2,173,940
(184,905)
(3,630)
45,438
41,808
(143,097)
(143,097)
620,346
(14,026)
606,320
$ 463,223
17,674
297,680
315,354
265,970
(14,683)
208,252
193,569
459i539
459,539
6,639,317
6,639,317
$ 7,098,856
170
516
City of South Gate
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES:
Interdepartmental charges
Total operating revenues
OPERATING EXPENSES:
Personnel services
Utilities
Contractual services
Administrative services
Repair and maintenance
Supplies
Insurance
Claim expense
Depreciation expense
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES:
Interest expense
Interest income (loss)
Total nonoperating revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS:
Transfers in
Transfers out
Total transfers
Changes in net position
NET POSITION :
Beginning of year, as previously reported
Change in accounting principle (GASB 101)
Beginning of year, as restated
End of year
Building &
Infrastructure
Maintenance Total
I 167,400
167,400
$ 13,299,564
13,299,564
423,124
108,892
532,016
2,042,202
14,582
558,087
441,384
732,405
847,359
6,210,611
5,434,557
823,419
17,104,606
(364,616) (3,805,042)
(26,044)
484,844
458,800
(364,616) (3,346,242)
3,234,898
(11,783)
3,223,115
3,234,898
(11,783)
3,223,115
2,858,499 (123,127)
225,149
225,149
$ 3,083,648
3,535,824
(20,053)
3,515,771
$ 3,392,644
171
/3"1
517
City of South Gate
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTMTIES:
Cash received from interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash paid for insurance premium and claims
Net cash provided by (used in) operating activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Principal paid on long-term debt
Interest paid on long-term debt
Acquisition and construction of capital assets
Net cash (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTMTIES:
Investment income (loss)
Net cash provided by (used in) investing activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash received from other funds
Cash paid to other funds
Net cash (used in) noncapital financing activities Net change in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
Insurance
Information
Systems
Fleet
Management
$ 8,592,554
(243,335)
(456,957)
(7,691,481)
200,781
$ 1,964,212
(601,123)
(505,198)
857,891
$1,989,944
(1,103,172)
(991,357)
(104,585)
Capital Asset
& Equipment
Replacement
$ 581,324
(17,674)
563,650
195,519
195,519
396,300
8,595,429
$ 8,991,729
(193,804)
(7,731)
(201,535)
(4,370)
(207,117)
(211,487)
(51,268)
(16,538)
(472,431)
(540,237)
43,223
43,223
50,529
50,529
214,260
214,260
699,579 (265,543) 237,673
1,411,332
$ 2,110,911
1,561,162
$li295i619
5,028,859
$ 5,266,532
(Continued)
172
/4D
518
City of South Gate
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash paid for insurance premium and claims
Net cash provided by (used in) operating activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTMTIES:
Principal paid on long-term debt
Interest paid on long-term debt
Acquisition and construction of capital assets
Net cash (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTMTIES:
Investment income (loss)
Net cash provided by (used in) investing activities CASH FLOWS FROM NONCAPITAL FINANCING ACTMnES:
Cash received from other funds
Cash paid to other funds
Net cash (used in) noncapital financing activities Net change in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
Building &
Infrastructure
Maintenance Total
$ 167,401 $13,295,435
(575,178) (2,540,482)
(1,953,512)
(7,691,481)
(407,777) 1,109,960
(9,427)
(9,427)
(245,072)
(28,639)
(688,975)
(962,686)
503,531
503,531
3,428,987
(11,783)
3,417,204
3,428,987
(11,783)
3,417,204
3,000,000 4,068,009
16,596,782
$3,000,000 $ 20,664,791
(Continued)
173
/q/
519
City of South Gate
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTMTIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in deferred outflows of
resources related to pensions
(Increase) decrease in deferred outflows of
resources related to other postemployment benefits
Increase (decrease in accounts payable
Increase (decrease in accrued liabilities
Increase (decrease in compensated absences
Increase (decrease in claims and judgments
Increase (decrease in net pension liability
Increase (decrease in net OPEB liability
Increase (decrease in deferred inflows of
resources related to pensions
Increase (decrease) in deferred inflows of
resources related to other postemployment benefits
Total adjustments
Net cash provided by (used in) operating activities Insurance
Information
Systems
$ (3,690,095) $ 1681604
(5,039)
26,749
14,861
(82,273)
4,073
3,953,687
34,632
(17,259)
(21,718)
(16,837)
3,890,876
$ 200,781
365,860
7,015
(16,306)
120,065
(2,345)
(2,486)
135,508
88 705
(23,102)
16,373
689,287
$ 857,891
Fleet
Management
Capital Asset
& Equipment
Replacement
$ (184,905) $ 265,971
50,987
909
297,679
46,679
25,006
(93,062)
(5,373)
120 932
9 978
(46,228)
(29,508)
80,320
$ (104,585)
297,679
$ 563,650
(Continued)
174
/Clq
520
City of South Gate
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2025
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTMTIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation
(Increase) decrease in accounts receivable
(Increase) decrease in deferred outflows of
resources related to pensions
(Increase) decrease in deferred outflows of
resources related to other postemployment benefits
Increase decrease in accounts payable
Increase decrease in accrued liabilities
Increase decrease in compensated absences
Increase decrease in claims and judgments
Increase decrease in net pension liability
Increase decrease in net OPEB liability
Increase decrease in deferred inflows of
resources related to pensions
Increase (decrease) in deferred inflows of
resources related to other postemployment benefits
Total adjustments
Net cash provided by (used in) operating activities Building &
Infrastructure
Maintenance Total
$ (364,616) $ (3,805,041)
108,893 823,419
(4,130)
80,443
(152,054)
23,561
(207,324)
(2,345)
(3,786)
3,953,687
291,072
81,424
(91,048)
(43,161)
$ (407,777)
(29,972)
4,915,001
$ 1,109,960
(Concluded)
175
521
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/ qti
522
CUSTODIAL FUNDS
CUSTODIAL FUNDS accounts for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. Cash resources are collected, held for a brief period and then distributed to the proper recipients. The City has a fiduciary responsibility for the assets, which it does not own. The following funds are classified as an custodial fund in the financial statements:
Tweedy P & BIA Fund - This fund is funded for several eligible events and activities under the Tweedy Parking and Business Improvement District (BID). To raise funds, each business in the District area will pay an assessment along with the City Business License. Assessments charged to each business will vary depending on the gross income reported on their License application/renewal. Decision regarding use of the BID funds are made by an Advisory Board appointed by the City Council.
Special Deposits Fund - This fund is used to account for deposits placed with the City for future services and trust funds awaiting remittance to relevant service providers. 177
/'7r
523
City of South Gate
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
ASSETS
Cash and investments
Accounts receivable
Total assets
LIABILITIES
Accounts payable
Total liabilities
NET POSITION
Restricted for:
Individuals, organizations, and other governments
Tweedy
P & BIA
Special
Deposits Total
$ 28,458
52 28,510
$ 1,092,487
77 1,092,564
$ 1,120,945
129
1,121,074
744
744
744
744
$ 28,510 $ 1,091,820 $ 1,120,330
178
524
City of South Gate
Statement of Changes in Fiduciary Net Position
Fiduciary Funds - Custodial Funds
For the Year Ended June 30, 2025
Tweedy
P & BIA
Special
Deposits Total
ADDITIONS:
Use or money and property
Membership assessment
Total additions
$ 468
21,386
21,854
93,975
93,975
$ 468
115,361
115,829
DEDUCTIONS:
Operational expenses
Total deductions
10,637
10,637
141,048
141,048
151,685
151,685
Changes in Net Position 11,217 (47,073) (35,856)
NET POSITION:
Beginning of year 17,293 1,138,893 1,156,186
End of year 28,510 $ 1,091,820 $1,120,330
See accompanying Notes to t5p Basic Financial Statements.lx> / '11
525
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526
ST ATISTICAL SECTION (UNAUDITED)
181
M6i
527
City of South Gate
Statistical Section
Overview (Unaudited)
This part of the City of South Gate'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 agency's overa!l financial health.
Contents Page
Financial Trends 182-195
These schedules contain trends data to help the reader understand how the goxierzment's financial performance and wellbeing have changed over time.
Revenue Capacity 196-203
These schedules contain information to help the reader assess one of the government's most significant local revenue source - property tax.
Debt Capacity 204-208
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.
Demographic and Economic Information 209
This schedule offers demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.
Operating Information 210-214
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 182
')or>
528
City of South Gate
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Governmental Activities
Net Investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
$ 228,683
29,778
(40,323)
$ 218,"138
-2017
$ 214,3"l0
32,432
(22,504)
$ 224,238
2018
$ 233,267
34,187
(72,433)
$ 195,021
-2019
$ 237,924
34,130
(70,880)
$ 201,174
2020
$ 235,345
38,447
(56,382)
$ 217,410
Business-type activities
Net Investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
$ 352
2,002
20,588
$ 22,942
$ 17,879
2169
11,024
$ 31,072
$ 19,086
1 ,888
16,523
$ 37,497
$ 19,213
i,974
22,031
$ 43,218
$ 18,944
831
10,984
$ 30,759
Primary government
Net Investment in capital assets
Restricted
Unrestricted
Total primary government net position
$ 229,035
31 ,780
(al9,735)
$ 241,080
$ 232,189
34,601
(11 ,480)
$ 255,310
$ 252,353
36,075
(55,910)
$ 232,518
$ 257,137
36,104
(48,849)
$ 244,392
$ 254,289
39,278
(45,398)
$ 248,169
Source: The information is derived from the City's financial statements. 183
')tq /
529
City of South Gate
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Governmental Activities
Net Investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
-2021 2-022 -2023
$ 239,644 $ 239,102 $ 249,431
61928 49,312 61,752
(64,212) (8"l,468) (80,758)
$ 237,360 $ 206,946 $ 230,425
$ 271 ,688
56,246
(84,779)
$ 243,155
-2025
$ 292,377
43,786
(79,436)
$ 256,727
Business-type activities
Net Investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
$ 20,712 $ 22,812 $ 22,936 $ 32,690 $ 36,400
846
"14,717 38,301 38,700 33,359 30,98al
$ 36,275 $ 61,all3 $ 61,636 $ 66,049 $ 67,381
Primary government
Net Investment in capital assets
Restricted
Unrestricted
Total primary government net position
$ 260,356 $ 261,914 $ 272,367
62,774 49,312 6"l,752
J J3
$ 273,635 $ 268,059 $ 292,061
$ 304,378
56,246
(51 ,420)
$ 309,204
$ 328,777
43,786
(48,455)
$ 324,108
Source: The information is derived from the City's financial statements. 184
,'20,>
530
CITY OF SOUTH GATE
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental activities:
General government
Police
Community development
Parks and recreation
Public works
Interest expense
Total governmental activities expenses
Business-type activities:
Water
Sewer
Refuse
Total business-type activities expenses
Total primary government expenses
-2016
$ 6,312
22,507
10,939
6,951
16,794
1,122
64,625
12,956
1 ,672
3,493
18,121
-20"l7
$ 6,847
27,043
10,987
7,544
18,513
1310
72,244
12,516
I ,767
3,715
17,998
-2018
$ 8,663
31,154
12,533
"10,115
21 ,475
911
84,85al
14,033
1,740
3,810
19,583
-2019
$ 7,568
27,451
11 ,033
8,495
18,882
797
74,226
13,733
I ,48'l
3,941
19,155
-2020
$ 7,239
32,658
11 ,681
8,762
18,790
533
79,663
15,171
1 ,330
4,043
20,544
$ 82,746 $ 90,242 $ 104,434 $ 93,381 $ 100,207
Source: The information is derived from the City's financial statements. 185
/)/,,"2
531
CITY OF SOUTH GATE
CHANGES IN NET POSITJON (Ccntinued)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
Program Revenues
Governmental activities:
Charges for service:
General government
Police
Community development
Parks and recreation
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Charges for service:
Water
Sewer
Refuse
Operating grants and contributions
Total business-type activities program revenues
Total primary government program revenues
-2016
$ 3,037
3,844
2,684
966
1,i46
14,756
7,148
33,581
20,524
i ,346
3,717
71 25,658
-2017
$ 2,949
4,189
3,619
1,106
1,456
14,090
8,221
35,630
19,720
I ,340
3,738
35 24,833
-2018
$ 2,900
I ,837
1,619
1,274
1,283
Il ,846
8,748
29,507
20,772
I ,350
3,856
37 26,015
$ 3,104
2,160
1 ,671
I ,394
'i,269
16,278
8,496
34,372
19,899
1,298
3,955
69 25,221
-2020
$ 2,945
2,052
I ,739
i ,029
1,584
19,486
5,370
34,205
19,859
1 ,258
4,080
48 25,245
$ 59,239 $ 60,463 $ 55,522 $ 59,593 $ 59,450
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense
$ (31044)
7,537
$ (23,507)
$ (36,614)
6,835
$ (29,779)
$ (55,344)
6,432
$ (48,912)
$ (39,854)
6,066
$ (33,788)
$ (45i458)
4,701
$ (40,757)
Source: The information is derived from the City's financial statements. 186
)otl
532
CITY OF SOUTH GATE
CHANGES IN NET POSITION (Continued)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
General Revenues and Other Changes in
Position
Governmental activities:
Taxes
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes
Investment income
Motor vehicle in-lieu
Miscellaneous
Transfers
Total governmental activities
Business-type activities:
Investment income
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total primary government
-2016
$ 11,712
350
21 ,838
2,420
2,073
2 ,412
39 1 ,237
(1,066)
41015
1 ,066
1 ,066
-2017
$ 12,13i
390
20,623
2,454
2,2"l6
1 ,539
45 576
(1 ,294)
38,680
1 ,294
1 ,294
2018
$ M,907
420
21,121
2,708
2,051
I ,356
52 5 ,800
6 48,421
-2019
$ 15,358
450
22,561
2,688
2,118
2,532
47 240
12 46,006
$ 14,079
412
21,162
2,744
1 ,990
1 ,575
76 1 ,064
2 87
43,389
(287)
(287)
$ 42,081 $ 39,974 $ 48,415 $ 45,994 $ 43;102
$ 9,972
8,603
$ 18,575
$ 2,065
8,130
$ 10,195
$ (6,922)
6,425
$ (497)
$ 6,153
6,218
$ 12,37"1
$ (2,070)
5,681
$ 3,611
Source: The information is derived from the City's financial statements. 187
:2C!r
533
CITY OF SOUTH GATE
CHANGES IN NET POSITION (Ccntinue'l)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
Expenses
Governmental activities:
General government
Police
Community development
Parks and recreation
Public works
Interest expense
Total governmental activities expenses
Business-type activities:
Water
Sewer
Refuse
Total business-type activities expenses
Total primary government expenses
-2021
$ 7,847
34,519
13,738
8,526
22,509
703
87,642
14,001
1 ,224
4,163
19,388
$ 7,578
34,487
11,374
8,775
19,189
650
82,053
15,071
I ,751
4,324
21,146
-2023
$ 15,387
23,4al9
11 ,686
11,068
20,221
578
82,359
15,693
1 ,530
2 ,571
19,794
-2024
$ 17,482
44,055
13,3alal
12,027
15,329
522
102,726
15,024
1 ,78"l
494
17,299
-2025
$ 19,059
36,969
15,754
12,357
22,364
414
106,917
19,011
2 ,402
3 52
21 ,765
$ 107,030 $ i03,199 $ 102153 $ 120,025 $ 128,682
Source: The information is derived from the City's financial statements. 188
ao{,,
534
CITY OF SOUTH GATE
CHANGES IN NET POSITION (Continued)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
Program Revenues
Governmental activities:
Charges for service:
General government
Police
Community development
Parks and recreation
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Charges for service:
Water
Sewer
Refuse
Operating grants and contributions
Total business-type activities program revenues
Total primary government program revenues
-2021
$ 2,676
1 ,580
I ,569
328
3,597
28,487
24,999
63,236
19,398
I ,289
4,207
11 24,905
-2022
$ 1,965
i ,607
2,002
1,160
1 ,703
33,778
10,387
52,602
19,565
I ,272
4,347
137
25,321
-2023
$ 2,434
2,081
1 ,992
I ,533
2,244
3 2,332
4 ,554
47,170
17,577
1 ,127
2 ,382
21 ,086
-2024
$ 2,255
2,070
1 ,995
I ,750
1,787
30,181
13,079
53,117
19,342
1 ,307
(80)
2 61
20,830
-2025
$ 1439
1 ,971
1"l
2 ,067
4,360
35,218
17,386
62,452
20,290
2,321
i09
22,720
$ 88,141 $ 77,923 $ 68,256 $ 73,947 $ 85,172
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense
$ (24,406)
5,517
$ (18,889)
$ (29,451) $ (35,189)
4,175 1,292
$ (25,276) $ (33,897)
$ (49,609)
3,531
$ (46,078)
$ (44,465)
955
$ (43,510)
Source: The information is derived from the City's financial statements. 189
,,2C>7
535
CITY OF SOUTH GATE
CHANGES IN NET POSITION (Continued)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
General Revenues and Other Changes in
Position
Governmental activities:
Taxes
Property taxes
Transient occupancy taxes
Sales taxes
Franchise taxes
Other taxes
Investment income
Motor vehicle in-lieu
Miscellaneous
Transfers
Total governmental activities
Business-type activities:
Investment income
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total primary government
-2021
$ 15,082
474
25,106
2,732
2,206
226
71 571
2 46,470
-2022
$ 15,462
557
27,689
2,847
2,215
(2,243)
112
858
(21 ,986)
25,5al 1
-2023
$ 16,575
609
28,980
3,147
2,017
759
5,155
1 ,336
58,548
-2024
$ 17,497
565
28,409
3,392
2,019
4,70al
4,435
1 ,320
62,338
2025
$ 18,486
607
27,330
3,360
1 ,631
3,699
2,847
i,412
59,372
(1 ,324)
21 ,986
20,662
567
(1 ,336)
(769)
2,202 1,805
(1,320) J
882 393
$ 46,530 $ 46,173 $ 57,779 $ 63,220 $ 59,765
$ 22,064
5,578
$ 27,642
$ (3,940)
24,837
$ 20,897
$ 23,359
523
$ 23,882
$ 12,729
4,413
$ 17,142
$ 14,907
I ,348
$ 16,255
Source: The information is derived from the City's financial statements. +go
20E
536
CITY OF SOUTH GATE
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
General fund
Reserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
-2016
Il 705
280
16 000
3 572
14 570
$ 46;127 $
-2017
9,522
224
15,929
3,724
18,343
47,742
-2018 -2019 -2020
$-$-$
8,069 7,055 23,997
230 281 172
19,870 19,870 19,870
3,503 3,482 3,482
11,562 14,545 10,535
$ 43,234 $ 45,233 $ 58,056
All other governmental funds
Reserved $ - $ - $ $ - $
Nonspendable 4 400 32
Restricted
Restricted, reported in:
Special Revenuefunds 21168 21,227 22,831 22,828 28,058 CapitalProjectsfunds 128 2 2 2 2
Lowandmoderatehousingactivities 8,799 10,980 11,125 11,019 10,867 Committed
CapitalProjectfunds 558 558 4,055 4,055 4,056
Unassigned
Unassigned, reported in:
Special Revenuefunds (5,401) (3,672) (3,437) (3,139) (4,384) CapitalProjectsfunds 39
DebtServiceTunds (26) (26)
Total all other governmental funds $ 25,227 $ 29,469 $ 34,576 $ 34,804 $ 38,631 Source: The information is derived from the City's financial statements. 191
') r'A
537
CITY OF SOUTH GATE
FUND BALANCES OF GO'./ERNMENTAL FUNDS (Continiied)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
-2021 -2022 -2023 -2025
General fund
Reserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
24,009
282
19,870
3,482
12,722
$ 60,365
2,076
450
9,000
3,482
24,396
$ 39,404
2 ,213
313
20,730
4,852
9,436
$ 37,544
2,035
285
20,730
4,852
9,701
$ 37,603
2,060
20,730
4,852
9,413
$ 37,055
All other governmental funds
Reserved
Nonspendable
Restricted
Restricted, reported in:
Special Revenue funds
Capital Projects Funds
Low and moderate housing activities
Committed
Capital Project funds
Unassigned
Unassigned, reported in:
Special Revenue funds
Capital Projects funds
Debt Service funds
Total all other governmental funds
49,465
2 10,874
3,711
(3,741)
40,191
2 4,23"l
3,507
(5,343)
I ,470
45;101
2 3,682
3,210
(12,270)
1 ,470
39,332
2 3,687
3,029
(11 ,956)
40,083
3,586
848
(13,898)
$ 60,343 $ 44,093 $ 4i249 $ 34,094 $ 30,619
Source: The information is derived from the City's financial statements. 192
Q /{'i
538
CITY OF SOUTH GATE
CHANGES IN FUND BALANCES OF GOVERNMENT AL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for service
investment income
Fines and forfeitures
Rental income
Other
Total revenues
Expenditures
General government
Police
Community development
Parks and recreation
Public works
Capital Outlay
Debt service:
Principal
Interest and fees
Total expenditures
Excess of revenues over (under)
expenditures
-2016
$ 39,966
i ,557
20,009
3,365
2,226
1 ,249
3,943
72,315
6,369
22,863
10,893
6,027
8,405
12,912
I ,823
i,rog
70,401
$ 39,925
1 ,482
2 7,090
3,227
I ,204
1,183
3,635
77,746
6,545
24,131
10,766
6,429
9,276
12,891
1 ,725
1 ,028
72,791
-2018
$ 41,207
1 ,464
21 ,660
3,451
i,356
1,125
8,672
78,935
6,686
25,252
10,880
7,148
10,089
9,689
1,749
946
72,439
2019
$ 43,175
1 ,371
2 5,274
3,699
2,531
i ,443
3,325
80,818
6,882
26,539
11 ;143
7,510
10,104
14,696
1 ,575
862
79,311
-2020
$ 42,377
2,001
22,577
2,785
2,033
1 ,502
4,256
77,531
7,007
29,449
1l ,537
7,956
10,753
7,017
1,813
774
76,306
$ 1,914 $ 4,955 $ 6,496 $ 1,507 $ 1,225
Source: The information is derived from the City's financial statements. 193
,:)ll
539
CITY OF SOUTH GATE
CHANGES !N FUND BALANCES OF GOVERNMENT AL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
Other financinq sources (uses)
Transfers in
Transfers out
Issuance of leases
Debt issued
Issuance of financing agreements
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
-2016 -2017 -2018
i4.968 $ 11.2i2
(16,034) (12,345)
882
$ "13,237
(19,134)
(5,897)
$ 1,730 $ 3,822 $ 599
5.1 % 4.6% 4.3%
zo"ig -2020
$ 13,533
(13,254)
$ 6,680
(6,393)
441
720 287
$ 720 $ 1512
3.8% 3.7%
Source: The information is derived from the City's financial statements. 194
540
CITY OF SOUTH GATE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (Continued)
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for service
Investment income
Fines and forfeitures
Rental income
Other
Total revenues
Expenditures
General government
Police
Community development
Parks and recreation
Public works
Capital Outlay
Debt service:
Principal
Interest and fees
Total expenditures
Excess of revenues over (under)
expenditures
-2021
$ 47,599
3 ,767
4 9,934
2,132
414
1 ,095
3,474
108,415
6,807
30,318
13,160
7,212
11 ,424
13,250
I ,554
706
84,431
-2022
$ 50,772
1 ,666
41,327
3,460
(1,511)
1,310
I 30
4,129
1C11,283
8,305
3-1,217
12,051
8,777
12,023
17,545
1 ,692
633
92,243
-2023
$ 53,290
2,178
28,974
4,426
866
I ,687
i43
5,827
97,391
14,474
33,030
11 ,737
10,523
14,257
17,244
I ,701
564
103,530
-2024
$ 53,877
I ,675
44,030
4,454
4,419
I ,679
141
5,224
115,499
18,251
32,794
13,181
Il ,289
15,904
30,037
-2025
$ 53,417
1 ,634
53,47?
4,642
3,512
1 ,569
238
6,027
124,516
'17,893
31 ,371
15,214
12,808
16,895
30,565
1,805 1,954
489 394
123,750 127,094
$ 23,984 $ 9,040 $ (6,139) $ (8,251) $ (2,578)
Source: The information is derived from the City's financial statements. 195
2 E
541
CITY OF SOUTH GATE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (Continped,'
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(amounts expressed in thousands)
Other financinq sources (uses)
Transfers in
Transfers out
Issuance of leases
Debt issued
Issuance of financing agreements
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
-2021 -2022 -2023 -2024 -2025
$ 12,190
(12,152)
$ 28,455
(57,458)
30 $ 18,821
(17,48al)
94 $ 29,946
(28,583)
$ 37,475
(39,286)
158
38 1,434 1,363 J
$ 24,022 $ (19,933) $ (4,705) $ (6,888) $ (4,231)
3.2% 3.lo/o 2.6% 2.4% 2.4o/o
Source: The information is derived from the City's financial statements. 196
542
CITY OF SOUTH GATE
GOVERNMENTAL ACTMTIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
Tvoe of Tax
Property tax
Transient occupancy tax
Sales and use tax
Franchise tax
Business licenses tax
Motor vehicle in-lieu
Other taxes
-2016
$ 11,712
350
2 -1,838
2,420
1 ,466
39 -2017
$ 12,131
390
20,623
2,454
I ,584
45 608 632
2018
$14,907
420
21,121
2,708
1 ,461
52 590
-2019
$ 15,358
450
22,561
2,688
1 ,560
47 558
-2020
$14,079
412
21,162
2,744
1 ,397
76 593
Total $ 38,433 $ 37,859 $ 41,259 $ 43,222 $ 40,463
Source: The information is derived from the City's financial statements. 197
')i-,,
543
CITY OF SOUTH GATE
GOVERNMENTAL ACTMTIES TAX REVENUES BY SOURCE (Continued)
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(amounts expressed in thousands)
Type of Tax
Property tax
Transient occupancy tax
Sales and use tax
Franchise tax
Business licenses tax
Motor vehicle in-lieu
Other taxes
-2021
$ 15,082
474
25,106
2,732
1 ,496
71 710
-2022 -2023
$ 15,462 $ 16,576
557 609
27,689 28,980
2,847 3,1"l7
1,568 1,721
112
647 295
g4
$ 17,497
565
28,410
3,392
1,710
308
-2025
$ 18,486
607
27,330
3,360
1 ,398
233
Total $ 45,671 $ 48,882 $ 51298 $ 51,882 $ 51,414
Source: The information is derived from the City's financial statements. 198
':)t r,
544
City of South Gate
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)
Agency
Basic Levy '
Cerritos Community College District
Compton Community College District
Downey Unified School District
LA Community College District
Los Angeles Unified School District
Lynwood Unified School District
Metropolitan Water District
Paramount Unified School District
Total Direct & Overlapping " Tax Rates
-2016
1 .00000
0.04809
0.00926
O.li466
0.03576
0.i2971
0.09583
0.00350
0. 05266
1. 48947
-2017 2018
I .00000
0.04698
0.00920
0.11473
0.03596
0.13110
0.10308
0.00350
0.10677
1.55131
1 .00000
0.04370
0.00954
0.10538
0.04599
0.i2219
0.19014
0.00350
0.17409
1. 69454
2019
1 .00000
0.04446
0.02335
0.10113
0.0462"l
0.12323
0.11737
0.00350
0. 16756
1. 62681
-2020
I .00000
0.04449
0.02323
0.09708
0.02717
0.12552
0.18874
0.00350
0. 22092
1. 73065
City's Share of 1% Levy per Prop 13""
General Obligation Debt Rate
Redevelopment Rate"'
Total Direct Rate"""
0.06146
0.00000
0.06084
0.06146 0.06146
0.00000 0.00000
0.06086 0.06073
0.06146
0.00000
0.06093
0.06146
0.00000
0.06095
Notes:
'In 1978, California voters passed Proposition 4 3 which set the property tax rate at a 1.OO% fixed amount. This 100% is shared by all taxing agencies for which the subject property resides within. In addition to the 'i.OO% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 'Overlapping rates are those of local and county governments that apply to property owners within the City.
Not all overlapping rates apply to all city property owners. ""City's Share of I % levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. ""Redevelopment rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property tax values.
The approval of ABX1 26 elimated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. """ Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues dervied from aircratt. Beginning in 2C)13/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations ate assumed to have been resolved during 201 2/13. For the purposes of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
Source: L.A.CountyAssessor20l5/16-2024/25TaxRateTable
igg
545
City of South Gate
Direct and Overlapping Property Tax Rates (Continued) Last Ten Fiscal Years
(Rate per $alOO of Taxable Value)
Agency
Basic Levy "
Cerritos Community College District
Compton Community College District
Downey Unified School District
LA Community College District
Los Angeles Unified School District
Lynwood Unified School District
Metropolitan Water District
Paramount Unified School District
Total Direct & Overlapping " Tax Rates
-202'l
1 .00000
0.04348
0.00899
0.08771
0.04016
0.13993
0.08702
0.00350
0. 15139
1. 56218
-2022
I .00000
0.04251
0.00906
0.09504
0.04376
0.11323
0.12991
0.00350
0. "l6594
1. 60295
-2023
1 .00000
0.04361
0.01575
0.09106
0.02488
0.12107
0.15513
0.00350
0. 16986
1. 62486
2024
I .00000
0.04231
0.02022
0.13183
0.06023
O.I 2422
0.15810
0.00350
0. 15741
1. 69782
-2025
I .00000
0.06489
0.01658
0.1256-1
0.05136
0.12802
0.14278
0.00700
0. 15816
1. 69440
City's Share of 1% Levy per Prop 13"
General Obligation Debt Rate
Redevelopment Rate""
Total Direct Rate""
0.06146
0.00000
0.06097
0.06146
0.00000
0.06098
0.06146
0.00000
0.08-101
0.06146
0.00000
0.06102
0.06146
0.00000
0.06102
Notes:
"In 1978, California voters passed Proposition 4 3 which set the property tax rate at a 'i.OO% fixed amount. This 1.OO% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.OO% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. "Overlapping rates are those of local and county governments that apply to property owners within the City.
Not all overlapping rates apply to all city property owners. ""City's Share of 1 % levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where known. ""Redevelopment rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property tax values.
The approval of ABXI 26 elimated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. """ Total Direct Rate is the weighted average of all individual direct rates applied by the City/Agency preparing the statistical section information and excludes revenues dervied from aircrafk. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. Forthe purposes ofthis report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue.
Source: L. A. County Assessor 201 5/16 - 2024/25 Tax Rate Table 200
546
City of South Gate
Assessed Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
2015/16 7 20"l7/18 2018/19 2019/20
Type of Property
Residential $ 3,526,730 $ 3,682,817 $ 3,836,767 $4,041,859 $ 4,244,936 Commercial 526,371 553,697 597,645 636,252 681218
Industrial 653,662 668,701 662,336 683,926 744,779 Farm 663 673
Government 3,292 3,595 479 489 3,070
Institutional 12,343 15,256 18,358 16,386 23,895
Irrigated 10,674 11572 9,998 9,557 9,808
Miscellaneous 398 406 414
Recreational 4,372 6,675 7,165 8,287 5,553
VacantLand 110,995 99,828 99,578 97,262 89,5E11
SBENonunitary 419 530 861 661 66al
Unsecured 339,707 350,070 375,664 389,984 4'14,742 Cross Reference 11,327 11,674 43,478 13,658 13,303 Total taxable Assesed Value 5,200,554 5,405,089 5,622,727 5,898,727 6,231,960 Totaldirecttaxrate O.60840% 0.60860% 0.60730% 0.60930% 6.09500% Tax-Exempt (47,025) (46,977) (46,977) (44,588) (44,456) Source: Los Angeles County Assessor
201
547
City of South Gate
Assessed Value cf Taxable Property (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands)
Type of Property
Residential
CO-iiimercial
Industrial
Farm
Government
Institutional
Irrigated
Miscellaneous
Recreational
Vacant Land
SBE Nonunitary
Unsecured
Cross Reference
Total taxable A.V.
Total direct tax rate
2020/21 , 2022/23 2023/24 2024/25
$ 4,413,386 $ 4,544,525 $ 4,819,099 $5,173,077 $ 5,377,743 898,548 915,066 940,224 984,054 1,015,998
781,891 802,521 921,187 977,402 1,079,120
3,131
30,181
9,846
422
5,664
38,881
883
405,425
15,952
6,604,211
6.09700%
2,649
25,601
9,863
426
9,375
40,656
883
423,319
16,192
6,791,076
6.09800%
2,702 2,756
45,473 43,564
9,977 14,792
592 939
6,570 10,769
43,278 44,359
883 883
462,358 486,882
16,824 17,300
7,269,167 7,756,780
6.10100% 6.10200%
2,81 I
29,462
14,538
9!51
6,604
49,715
883
467,660
18,139
8,063,625
6.40300%
Tax-Exempt (44,456) (44,979) (44,872) (45,900) (37,378) Source: Los Angeles County Assessor
202
548
City of South Gate
Principal Property Taxpayers
Current Year and Nine Years Ago
(amounts expressed in thousands)
Taxpayer
Schultz Steel Company "
CFT Sofa LLC
Azalea Joint Venture LLC ("
South Gate Owner LP
EI Paseo Center SPE LLC
J B HUNT TRANSPORT INC
Tesoro Logistics Operations LLC ("
4545 Ardine Street Investors LLC
HUSPRF Bowers LP ("
WalmarUSam's ("
South Gate Business & Industrial Park
Armstrong Cork Company
Hudd Distribution Services Inc.
World Oil Company
Rockview Dairies Inc.
City Total Assessed Valuation
Taxable
Assessed
Value
2024/25
% of Total
City Taxable
Assessed
Rank Value
$ 145,810
136,680
132,302
81 ,395
65,948
64,644
45,585
44,571
43,860
40,789
$ 801,582
8,063,625
1 2
3 4
5 6
7 8
9 10
1.81%
1.70%
i .64%
I.Oal%
0.82%
0.80%
0.57%
0.55%
0.54%
0.51 %
9.95%
Taxable
Assessed
Value
$ 108,661
36,381
55,969
69,639
23,384
32,461
28,741
26,163
23,859
22,459
$ 427,717
5,200,554
2015/16
% of Total
City Taxable
Assessed
Rank Value
1 4
3 2
9 5
6 7
8 10
2.09%
0.70%
I .08%
I .34%
0.45%
0.62%
0.55%
0.50%
0.46%
0.43%
8.22%
Source: Los Angeles County Assessor and HdL Companies ('1) Pending Appeals on Parcels.
203
')",I
549
City of South Gate
Property Tax Levies and Coliections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year
Ended
June 30
2025
2024
2023
2022
2021
2020
2019
20"l8
2017
2016
Total Tax
Levy for
Fiscal Year
3,526
3,451
3,319
3,133
3,052
:,gog
2,786
2,585
2,504
2,431
Collected within the
Fiscal Year of the Levy
Amount h' % of Levy
3,273
3,097
3,198
2,990
2,959
2,739
2,666
2,479
2,423
2,339
Collections
in Subsequent
Years ("
N/A
13 "17
23 "13
3 14
(2)
3 6
Total Collections to Date
Amount " % of Levy
N/A
3110
3,215
3,013
2,972
2,742
2,680
2,478
2,426
2,346
Source: Los Angeles County Assessor and City of South Gate Finance Department (1 ) Revised figures due to methodology revision.
204
550
City of South Gate
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except for per capita amounts) General Bonded Debt
Fiscal
Year
Ended
June 30
Revenue
Bonds
Pension
Obiigation
Bonds
2025 $
2024
2023
2022
2021
2020
2019
2018
2017
2016
Fiscal
Year
Ended
June 30
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
Business
Type
Activities
Water
Revenue
Bonds
$ 23,640
25,465
27 ,249
28 ,998
30,713
32,398
36,750
38 ,299
39 ,777
41,187
5,440
7 ,070
8 ,615
10,085
ii ,480
12,800
14 ,055
15 ,245
16 ,375
17 ,445
Total
Primary
Government (3)
29,862
33,767
36,722
39,881
42,693
45,937
52102
54,785
58,012
61,147
Percentage
of Actual
Taxable Value
of Property (1)
O.OO% $
O.OO%
O.OO%
0.17%
0.17%
0.19%
0.24%
0.27%
0.30%
0.34%
Percentage
of
Personal
Income (2)
1.31%
L60%
1 .94%
2 .17%
2.44%
2. 81%
3. 43%
3. 76%
4. 19%
4.49%
Other Governmental Activities Debt
Per
Capita (2)
Certificates
of
Participation
Assessment
Bonds
Capital
Leases
58.52 $
76.24 93.Oi
108.M
118.90
132.26
145.23
155.35
166.02
175.19
Per
Capita (2)
321 .25
364.15
396.45
417.79
431 .94
474.67
538.37
558.27
588.16
61406
$ 782 $
1 ,232
858
798
500
739
987
641
730
825
Notes/
LO!!!
310
600
1,130
1 ,690
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. (1) See Assessed Value of Property schedule for taxable property value data. (;) See Demographic & Economic Statistics schedule for population and personal income data. These ratios are calculated using personal income and population for the prior calendar year. (a) Includes general bonded debt, other governmental activities debt, and business-type activities debt. 205
551
City of South Gate
Direct & Overlapping Debt
June 30, 2025
pity's F3hare ofPercent
Applicabl6
(1
'Total 'Debt
6/30/2025
2024-25 Assessed Valuation 8,063,825,032
$ 17,155,000
5101al0,300
I40,875,268
4,919,505,000
352,660,294
11 ,7 45,405,000
136,221 ,842
173,576,371
OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Cerritos Community College District
Compton Community College District
Los Angeles Community College District
Downey Unified School District
Los Angeles Llnified School District
Lynwood Unified School District
Paramount Unified School District
TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT
Less: Los Angeles Unified School District General Obligation Bonds Election of 20050, Series J & H Qualified School Construction Bonds: Amount accumulated in Interest and Sinking Fund and Set Aside for Repayment
TOT AL NET OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Los Angeles County General Fund Obligations
Los Angeles County Superintendent of Schools Certification of Participation Los Angeles Unified School District Certificates of Participation Lynwood Unified School District Cerkificates of Participation Paramount Unified School District Certificates of Participation City of South Gate Pension Obligation Bonds
City of South Gate Notes Payable
City of South Gate Leases Payable
City of South Gate Subscriptions Payable
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
TOTAL DIRECT DEBT
TOT AL GROSS OVERLAPPING DEBT
TOT AL NET OVERLAPPING DEBT
GROSS COMBINED TOT AL DEBT
NET COMBINED TOTAL DEBT
$3,036,637,390
2,331 ,775
225,010,000
13,865,000
18,093,000
5,440,000
30,453
352,331
400,047
0.198% $ 331967
1. 322% 6,743,658
2.1 33% 3,004,869
0.553% 27,204,863
4.981 % 17,5661009
0.675% 79,281,484
0.771% 1050,270
7.178% 12,459,312
$ -l47,344,432
0.384%
0.384%
0.675%
0.771 %
7.'l78%
100%
100%
100%
"100%
3,113,304
$ 144,231,128
$ 11,660,688
8,954
1,518,818
106,899
1298,'7'16
5,440,000
30,453
352,331
400,047
$ 20,816,906
$ 6,222,831
$ 16"l,938,507
$ 158,825,203
$ 16816i338 (2)
$ 165,048,034
(1 ) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the pofion of the overlapping district's assessed value that is within the boundari Of tt'le Cat)/ dtVfdeCl bJ tfle dtStr!Cf'S tO!al !axa51e assessed value. (2) Excludes tax revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2024-25 Assessed Va(uation:
Tota! Gross Overlapping Tax and Assessment Debt
Total Net Overlapping Tax and Assessment Debt
Total Net Direct Debt ($6,222,831)
Gross Combined Total Debt
Net Combined Total Debt
1.83%
1.79%
0.08%
2.09%
2.05%
Source: L MuniServices, LLC/Neumo
California Minucipal Statistics, Inc.
206
552
City of South Gate
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
-2016 -2017 -2018 -2019 -2020
Debt Limit $ 799,634 $ 824,157 $ 863,575 $895,128 $ 942,346 Total net debt applicable to limit
Legal debt margin 799,634 824,157 863,575 895,128 942,346 Total net debt applicable to the
limit as a percentage of debt limit 0% 0% 0% 0%
Source: L.A. County Assessor 2023/24 Combined Tax Rolls Note: Under state finance law, the City of South Gate's outstanding general obligation debt should not exceed 4 5 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. 207
553
City of South Gate
Legal Debt Margin Information (Continued)
Last Ten Fiscal Years
(amounts expressed in thousands)
Debt Limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the
limit as a percentage of debt limit
Legal Debt Margin Calculation for
Fiscal Year 2023-2024:
Assessed value
Add back: exempt real property
Total assessed value
Debt limit (1 5% of total assessed value)
Debt applicable to limit:
Legal debt margin
-2020 -2022 -2023 -2024 -2025
$ 1003,037 $ 1,035,245 $ all02,845 $1176,194 $"l,231,205 I ,003,037 1 ,035,245 1,102,845 1176,194 I ,231 ,205
0% 0% 0% 0% 0%
$ 7,269,167
83,130
$ 7,352,297
$ 7,756,780
84,514
$ 7,841 ,294
$ 8,063,625
144,408
$ 8,208,033
$ 1,102,845 $1,176,194 $123l,205
$ 1102,845 $1,176,194 $1,231,205
Source: L.A. County Assessor 2024/25 Combined Tax Rolls Note: Under state finance law, the City of South Gate's outstanding general obligation debt should not exceed 15 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. 208
554
CITY OF SOUTH GATE
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
2019 Water Revenue Bonds (1 )
Fiscal
Year
Water
2025
2024
2023
2022
2021
Utility
Charges
and Other
$ 20,290,003
19,342,033
17,577,356
19,564,619
ig,agz,ate
Less:
Operating
Expenses
$16,109,875
11 ,916,184
12 ,777,245
12,034,455
10,866,612
2001 Utility Revenue Bonds
Net Revenue
Available for
Debt Service
4,180,128
7,425,849
4,800,111
7 ,530,164
8 ,531 ,004
Debt Service Requirements
Principal Interest Total Coverage
$ 1,755,000
1 ,715,000
1 ,680,000
1 ,645,000
1,615,000
$ 752,853
791,722
827,639
860,555
893,861
2,507,853
2,506,722
2,507,639
2,505,555
2,508,861
166.68%
296.24%
191 .42%
300.54%
340.03%
Fiscal
Year
2020
2019
2018
2017
2C)16
Utility
Charges
and Other (3)
$ 20,062,750
20,102,247
20,975,927
19 ,924,023
20 ,727,981
2012 Water Revenue Bonds
Fiscal
Year
2020
2019
2018
2017
2016
Utility
Charges
and Other
$ 19,859;155
19 ,898,652
20 ,772,332
19 ,720,428
20 ,524,386
Less:
Operating
Expenses
$12,023,515
I I ,047,753
10,961 ,972
9,359,674
9,665,349
Less:
Operating
Expenses
$12,023,515
11 ,047,753
10,961,972
9,359,674
9,665,349
Net Revenue
Available for
Debt Service
$ 8,039,235
9,054,494
10 ,013,955
10 ,564,349
11 ,062,632
Net Revenue
Available for
Debt Service
$ 7,835,640
8 ,850,899
9 ,810,360
10 ,360,754
10,859,037
Debt Service Requirements
Principal Interest Total Coverage
$ 1,635,000
i ,625,000
I ,615,000
I ,605,000
1 ,600,000
$1 ,497,450
i,512,050
I ,521 ,250
1 ,525,650
I ,534,350
$ 3,132,450
3,137,050
3,136,250
3,130,650
3,134,350
256.64%
288.63%
319.30%
337.45%
352.95%
Debt Service Requirements
Principal Interest Total Coverage
$ i ,635,000 $1 ,497,450
1625,000 1,512,050
1,615,000 1,521,250
1,605,000 1,525,650
1,600,000 1,534,350
$ 3,132,450
3,"137,050
3,136,250
3,130,650
3,i 34,350
250.i4%
282.14%
3al2.81%
330.95%
346.45%
Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements.
Operating expenses do not include interest or depreciation. (1) 2019 Water Revenue Bonds refunded both 2001 and 2012 Water Revenue Bonds (2) Debt service payments split between Water & Sewer Funds beginning FY2021-22 (3) Amount Includes transfer in from Sewer Fund for its share of the debt service payment. 209
555
City of South Gate
Demagraphic and Economic Statistics
Last Ten Fiscal Years
Fiscal
Year
2025
2024
Population ("l)
92,955
92,729
2023 92,628
2022
2021
2020
2019
2018
2017
2016
20al5
93,259
96 ,553
97 ,003
96,777
98,133
98 ,633
99 ,578
96,101
Personal Income
(amounts expressed
in thousands) (2)
$ 2,287,634
2,116,584
I ,892,059
I ,797,08al
1,70F,,474
I ,633,262
I ,!51 7,002
1 ,455,568
1,384,879
1 ,361 ,700
1 ,354,544
Per Capita
Personal
Income (2)
$ 24,610
22,825
20,426
19,269
11673
16,837
15,675
14,832
14,040
13,674
14,095
School
Enrollment (3)
21 ,825
22 ,435
23,187
28,683
28,672
28,672
28,672
29,076
28,859
28,920
28,956
Unemployment
Rate (4)
5.lo/a
5.1 %
5. al o/o
9.9o/.,
13.7%
4.7ooo
4.9%
6.3%
6.9o/.,
8.8o/o
lO.7o/o
Sources:
(1 ) State of California - Department of Finance
(:) Bureau of Economic Analysis - reflects latest data available for Los Angeles Metro region (3) Avenu Insights & Analytics
(4) California Employment Development DepartmenUU.S. Dept. of Labor - Bureau of Labor Statistics 210
') ')<7
556
City of South Gate
Full-Time Equivalent City Employees by Function
Last Ten Fiscal Years
Function
City Manager
City Attorney
City Treasurer (1 )
City Clerk
Personnel
Finance
Police
Officers
Civilians
Public Works
Administration/Engineering
Maintenance
Water/Sewer
Parks & Recreation
Community Development
Sub-Total
Part-Time Hours
Full-Time Equivalents
TOT AL POSITIONS
-2016
4. 00
5. 00
20.00 82.00
41 .00
8.00 37.00
26.00 42.00
24.00 -2017
4. 00
5. 00
24.00 82.00
41.00 8.00
37.00 29.00
43.00 25.00
-2018
7.00 1 .00
4. 00
5. 00
23.00 85.00
43.00 10.00
40.00 29.00
45.00 24.00
4. 00
5. 00
23.00 85.00
43.00 IO.OO
40.00 29.00
45.00 24.00
-2020
7.00 I .00
4. 00
5. 00
23.00 85.00
43.00 10.00
40.00 29.00
46.00 23.00
297.00 306.00 316.00 316.00 316.00
121757
58.54 355.54
109,880 126,794
52.83 60.96
358.83 376.96
124,718 124,718
59.96 59.96
375.96 375.96
Source: City of South Gate Finance Department
211
557
City of South Gate
Full-Time Equiyalent City Employees by Function (Ccritiriued) Last Teri Fiscal Years
Function
City Manager
City Attorney
City Treasurer (1)
City Clerk
Personnel
Finance
Police
Officers
Civilians
Public Works
Administration/Engineering
Maintenance
Water/Sewer
Parks & Recreation
Community Development
Sub-Total
Part-Time Hours
Full-Time Equivalents
TOT AL POSITIONS
-2021
7.00 I .00
4. 00
5. 00
23.00 85.00
43.00 12.00
42.00 26.00
46.00 23.00
-2022
4. 00
5. 00
24.00 85.00
45.00 12.00
46.00 26.00
46.00 24.00
-2023
4.00 7.00
24.00 85.00
46.00 13.00
46.00 26.00
49.00 24.00
-2024
4.00 7.00
25.00 86.00
51 .00
i4.00
46.00 26.00
50.00 28.00
317.00 325.00 332.00 344.00
96,853
46.56 363.56
126,166
60.66 385.66
157,144
75.55 407.55
151,902
73.03 417.03
3.00 7.00
25.00 86.00
51 .00
15.00 46.00
27.00 50.00
32.00 348.00
144,768
69.60 417.60
Source: City of South Gate Finance Department
212
g ")D
558
City of South Gate
Operating Indicators by Function
Last Ten Fiscal Years
Function
Police Calls for service
Arrests
Parking citations issued
Moving citations/traffic violations
Share of seized asset (in thousands)
Water Customer accounts
Average daily consumption
(millions of gallons)
Water samples taken
New connections
Street Maintenance
Potholes repaired
Sq.ft of graffiti removal (in thousands)
Miles of streets swept
Culture and Recreation
Golf course participants
Swimming participants
Facility rentals
Recreation classes provided
Community Development
Permits issued
Code enforcement inspections
Housing vouchers issued
-2016
44,565
3,203
22,927
4,604
$ 1,616 $
15,454
6.8 2,173
19 I ,250
711
32,760
8,475
83,553
1,413
417
3 ,247
4 ,870
47 -2017
44,829
3,055
23,425
4,258
2,-149 $
'15,520
6.4 2,169
"15
2,500
904
3 6,400
6,550
86,924
I ,534
328
2,980
5,831
61 -2018
44,565
3,023
22,927
4,604
475
-2019
40,541
2 ,997
3 6,668
3,068
$ 1,143 $
15,689 15,737
7.4 7.4
2,225
26 2,500
23 140 140
942 1,000
36,400 36,400
5,276
88,070
1 ,900
328
2,842
6 ,587
7 2
3,484
86,293
2,839
436
2,839
9,698
80 39,800
1138
2 ,567
3 ,228
917
15,691
7.5 2,037
16 193
800
36,400
440
55,000
i,816
54 2,333
8,845
62 Source: Various City Departments
213
') ";2,/
559
City of South Gate
Operating Indicators by Function (Continued)
Last Ten Fiscal Years
Function
Police Calls for service
Arrests
Parking citations issued
Moving citations/traffic violations
Share of seized asset (in thousands) "'
Water Customer accounts
Average daily consumption
(millions of gallons)
Water samples taken
New connections
Street Maintenance
Potholes repaired
Sq.ft of graffiti removal (in thousands)
Miles of streets swept
Culture and Recreation
Golf course participants
Swimming participants
Facility rentals
Recreation classes provided
Community Development
Permits issued
Code enforcement inspections
Housing vouchers issued
-2021
40,521
I ,222
21 ,567
2,650
$ 160 $
i5,691
7.5 2,161
20 85
900
36,400
I ,666
I ,492
449
77 2,225
10,041
62 -2022
45,549
1,617
19,938
3,374
135 $
'i4,4'i8
6.4 2 ,323
3 3
500
800
36,400
1 ,560
18,418
1 ,850
340
927
746
41 2023
45,315
1 ,73al
2 2,845
1 ,935
698 $
i4,334
7.0 2,066
49 498
800
36,400
3,628
32,763
1 ,269
565
2,371
10,020
55 -2024
45,536
1 ,637
2 2,903
1 ,567
i,013 $
'i4,376
6.9 2 ,054
3 5
I ,737
800
36,400
8,309
42,525
I ,594
825
2,175
9,450
81 2025
43,694
2,371
21 ,691
1,816
1,0-/7
15,907
7.0 2,403
27 1,816
950
36,400
11 ,241
55,000
2,248
805
2,093
4, 100
38 (1 ) Revised figures for FY21-22 & FY22-23
Source: Various City Departments
214
560
City of South Gate
Capital Asset Statistics by Function
Last Ten Fiscal Years
Function
Police Stations
Patrol Units
Water Miles oflines and mains
Number of wells
Number of tanks
Number of reservoirs
Sewer Miles of sewers
Miles of storm drains
Streets Miles of streets
Traffic signals
Streetlights
Culture and Parks
Recreation Park acreage
Playgrounds
Ballfields
Swimming pools
Community Centers
-2016
135
l1
2 5
125.8