Agenda packet, regular meeting — West Covina City Council, February 18, 2025 (part 1 of 2)

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
FEBRUARY 18, 2025, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Diaz
Councilmember Brian Gutierrez
Please turn off all cell phones and other electronic devices prior to entering the Council Chambers

AMERICANS WITH DISABILITIES ACT
The City complies with the Americans with Disabilities Act (ADA). If you will need special assistance at Council meetings, please call (626) 939-8433 (voice) or (626) 960-4422 (TTY) from 8 to 5 Monday through Thursday. Do call at least one day prior to the meeting date to inform us of your particular needs and to determine if accommodation is possible. For sign language interpreter services at Council meetings, please request no less than four working days prior to the meeting.

AGENDA MATERIAL
Agenda material is available for review at the City Clerk's Office, Room 317 in City Hall, 1444 W. Garvey Avenue South, West Covina and at www.westcovina.org. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council that is distributed less than 72 hours before the meeting, will be made available for public inspection in the City Clerk’s Office, Room 317 of City Hall located at 1444 W. Garvey Avenue South, West Covina, during normal business hours.

NOTICE
The City Council will regularly convene on the first and third Tuesday of the month. The West Covina Community Development Commission, West Covina Public Financing Authority and the West Covina Community Services Foundation are agencies on which the City Council serves as members. Agendas may contain items for these boards, as necessary.

PUBLIC COMMENTS

ADDRESSING THE CITY COUNCIL
(Per WCMC 2-48, Ordinance No. 2150)
Any person wishing to address the City Council on any matter listed on the agenda or on any other matter within their jurisdiction should complete a speaker card that is provided at the entrance to the Council Chambers and submit the card to the City Clerk.

Please identify on the speaker card whether you are speaking on an agenda item or non-agenda. Requests to speak on agenda items will be heard prior to requests to speak on non-agenda items. All comments are limited to five (5) minutes per speaker.

Oral Communications may be limited to thirty (30) minutes, unless speakers addressing agenda items have not concluded.

Any testimony or comments regarding a matter set for a Public Hearing will be heard during the hearing.

RULES OF DECORUM
Excerpts from the West Covina Municipal Code and Penal Code pertaining to the Rules of Decorum will be found at the end of agenda.

AGENDA
AGENDA

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY

TUESDAY FEBRUARY 18, 2025, 7:00 PM

REGULAR MEETING

INVOCATION
Led by Al Richardson from New Beginning Christian Fellowship West Covina

PLEDGE OF ALLEGIANCE
Led by Councilwoman Diaz

ROLL CALL

REPORTING OUT FROM CLOSED SESSION

PRESENTATIONS
Certificates of Appreciation: Student Government Day
Presentation by East San Gabriel Valley Japanese Community Center and Certificate of Appreciation recognizing Pearl Omiya
Presentation by Dr. Basil on Current Health Issues

CITY MANAGER'S REPORT
City Manager's report on current City projects.

ORAL COMMUNICATIONS - Five (5) minutes per speaker
Please step forward to the podium and state your name and city of residence for the record when recognized by the Mayor.

CONSENT CALENDAR
All matters listed under CONSENT CALENDAR are considered to be routine and can be acted on by one roll call vote.

There will be no separate discussion of these items unless members of the City Council/Community Development Commission request specific items to be removed from the Consent Calendar for separate discussion or action.

APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE DECEMBER 17, 2024, CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES, THE FEBRUARY 4, 2025, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE FEBRUARY 4, 2025, CITY COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING MINUTES.

That the Council approve the December 17, 2024, City Council/Successor Agency Regular Session Meeting Minutes, the February 4, 2025, City Council/Successor Agency Regular Session Meeting Minutes and the February 4, 2025, City Council/Successor Agency Closed Session Meeting Minutes.

CITY MANAGER'S OFFICE
2) CONSIDERATION OF ORDINANCE NO. 2528 AMENDING CHAPTER 2 OF THE WEST

COVINA MUNICIPAL CODE RELATING TO PUBLIC PARTICIPATION AND DECORUM DURING CITY COUNCIL MEETINGS AND RESOLUTION NO. 2025-15 CHANGING THE

ORDER OF BUSINESS FOR REGULAR CITY COUNCIL MEETINGS
It is recommended that the City Council:

1. Introduce the following ordinance:

ORDINANCE NO. 2528 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING PROVISIONS OF DIVISION 2 (MEETINGS AND RULES OF PROCEDURE) OF ARTICLE II (CITY COUNCIL) OF CHAPTER 2 (ADMINISTRATION) OF THE WEST COVINA MUNICIPAL CODE RELATING TO

PUBLIC PARTICIPATION AND DECORUM AT CITY COUNCIL MEETINGS

2. Adopt the following resolution:

RESOLUTION NO. 2025-15 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, CHANGING THE ORDER OF BUSINESS FOR

REGULAR CITY COUNCIL MEETINGS

COMMUNITY DEVELOPMENT
3) CONSIDERATION OF APPROVAL OF TRAFFIC RECOMMENDATIONS FROM THE TRAFFIC COMMITTEE MEETINGS BETWEEN NOVEMBER 2024 THROUGH JANUARY 2025
It is recommended that the City Council approve the Traffic Committee recommendations detailed in the staff report for traffic engineering improvements Citywide from the meetings held between November 2024 through January 2025.
4) CONSIDERATION OF ACCEPTANCE OF WORK FOR SOUTHSIDE SEWER CIPP LINING IMPROVEMENTS PROJECT - PROJECT NO. 24004
It is recommended that the City Council take the following actions:

Accept the work performed by Southwest Pipeline and Trenchless Corp. for the Southside Sewer CIPP Lining Improvements Project (Project No. 24004) with a final cost of $816,644.01;

1. Authorize the City Manager and Assistant City Clerk to execute the Notice of Completion and file the Notice of Completion with the County of Los Angeles Registrar-Recorder; and

2. 3. Authorize the City Manager to release a retention once appropriate.

FINANCE DEPARTMENT
5) CONSIDERATION OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER RELATED REPORTS FOR THE YEAR ENDED JUNE 30, 2024
It is recommended that the City Council receive and file the following for the year ended June 30, 2024:

Annual Comprehensive Financial Report (“ACFR”);
Government Auditing Standards Letter;
Audit Communication Letter; and
Community Financial Report.
6) CONSIDERATION OF PURCHASING REPORT AND REJECTION OF UNAWARDED BIDS

AND REQUESTS FOR PROPOSALS
It is recommended that the City Council take the following actions:

It is recommended that the City Council take the following actions:

Receive and file the listing of all contracts and purchase orders that have been awarded by the City Manager from April 1, 2024 to January 31, 2025.

1. 2. Reject the unawarded bids and requests for proposals detailed within the staff report. 7) CONSIDERATION OF THE SECOND QUARTER FINANCIAL REPORT AND BUDGET AMENDMENT FOR FISCAL YEAR 2024-25
It is recommended that the City Council take the following actions:

1. Receive and file the Second Quarter Financial Report for Fiscal Year 2024-25; and

2. Adopt the following resolution:

RESOLUTION NO. 2025-12- A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2024 AND ENDING JUNE 30, 2025 (SECOND

QUARTER FINANCIAL REPORT)
8) ANNUAL REVIEW OF FINANCIAL POLICIES
It is recommended that the City Council adopt the following resolutions:

RESOLUTION NO. 2025-13 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, APPROVING THE CITY OF WEST

COVINA STATEMENT OF INVESTMENT POLICY
RESOLUTION NO. 2025-14 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, AMENDING THE FUND BALANCE POLICY

END OF CONSENT CALENDAR

HEARINGS

PUBLIC HEARINGS
9) CONSIDERATION OF ORDINANCE NO. 2525 (CODE AMENDMENT NO. 24-01) TO AMEND CHAPTER 26 OF THE WEST COVINA MUNICIPAL CODE TO MAKE CORRECTIONS AND

INCORPORATE REQUIRED UPDATES TO COMPLY WITH STATE LAW, AND TO AMEND THE “COMMERCIAL” PORTION OF THE PLANNED COMMUNITY DEVELOPMENT NO. 1 (PCD-1) FOR THE WEST COVINA PORTION OF WOODSIDE VILLAGE TO MAKE DEVELOPMENT WITHIN THE PCD-1 ZONING CONSISTENT WITH THE CURRENT ZONING
It is recommended that the City Council:

1. Conduct the public hearing; and

2. Introduce the following Ordinance:

ORDINANCE NO. 2525 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING CODE AMENDMENT NO. 24-01, THE DEVELOPMENT CODE UPDATE CLEAN UP, AMENDING CHAPTER 26 (ZONING) OF

THE WEST COVINA MUNICIPAL CODE, AND AMENDING THE COMMERCIAL PORTION OF PLANNED COMMUNITY DEVELOPMENT NO. 1 (PCD-1) FOR THE

WEST COVINA PORTION OF WOODSIDE VILLAGE

DEPARTMENTAL REGULAR MATTERS

CITY MANAGER'S OFFICE
10) Health Department Update
It is recommended that the City Council receive and file the report. 11) Presentation of the City of West Covina's current Emergency Operations Plan It is recommended that the City Council receive and file the report.

POLICE DEPARTMENT
12) City Hall CCTV & Metal Detector Implementation
It is recommended that the City Council receive and file the report.

PUBLIC WORKS
13) PUBLIC WORKS OPERATIONS
It is recommended that the City Council receive and file the report. 14) MEDIAN BEAUTIFICATION
It is recommended that the City Council receive and file the report.

MAYOR/COUNCILMEMBERS REPORTS
AB 1234 Conference and Meeting Report (verbal, if any)
(In accordance with AB 1234, Councilmembers shall make a brief report or file a written report on any meeting/event/conference attended at City expense.)

CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION (Per City of West Covina Standing Rules 4.f - Requests for reports, studies, or investigations that are not readily available must be placed on the City Council/Successor Agency agenda as items of business and must be approved by a majority of the City Council/Successor Agency Board.)

CITY COUNCIL COMMENTS

ADJOURNMENT
Next Tentative City Council Meeting
Regular Meeting March 4, 2025 7:00 PM

RULES OF DECORUM
The following are excerpts from the West Covina Municipal Code:

Sec. 2-48. Manner of addressing council; time limit; persons addressing may be sworn.

Each person addressing the council shall step up to the rostrum, shall give his or her name and city of residence in an audible tone of voice for the record and unless further time is granted by the council, shall limit his or her address to five (5) minutes. a.
b. The city council may establish a limit on the duration of oral communications.

All remarks shall be addressed to the council as a body and not to any member thereof. No person, other than the council and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the council, without the permission of the presiding officer. No question shall be asked of a councilmember except through the presiding officer. c.

The presiding officer may require any person to be sworn as a witness before addressing the council on any subject. Any such person who, having taken an oath that he or she will testify truthfully, willfully and contrary to such oath states as true any material matter d.
which he knows to be false may be held to answer criminally and subject to the penalty prescribed for perjury by the provisions of the Penal Code of the state.

Sec. 2-50. Decorum--Required.

While the council is in session, the members shall preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or disrupt the proceedings or the peace of the council nor interrupt any member while speaking or refuse to obey the orders of the council or its presiding officer, except as otherwise herein provided. a.

Members of the public shall not willfully disrupt the meeting or act in a manner that actually impairs the orderly conduct of the meeting.

For the purposes of this code, “willfully disrupt” includes, but is not limited to, continuing to do any of the following after being warned by the Mayor that continuing to do so will be a violation of the law:
a. Addressing the Mayor and City Council without first being recognized. b. Persisting in addressing a subject or subjects, other than that before the Mayor and City Council. c. Repetitiously addressing the same subject.
d. Failing to relinquish the podium when directed to do so.

From the audience, interrupting or attempting to interrupt, a speaker, the Mayor, a council member, or a staff member or shouting or attempting to shout over a speaker, the Mayor, a council member or a staff member. e.

As a speaker, interrupting or attempting to interrupt the Mayor, a council member, or a staff member, or shouting over or attempting to shout over the Mayor, a council member, or a staff member. Nothing in this section or any rules of the council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City or of the acts or omissions of the City Council. It shall be unlawful to violate the provisions of this Section. f.
b.

If any subsection, sentence, clause, or phrase or word of this Section 2-50 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Section. The City Council hereby declares that it would have passed this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or words had been declared invalid or unconstitutional.

Sec. 2-52. Persons authorized to be within council area.

No person, except city officials, their representatives and members of the news media shall be permitted within the rail in front of the council chamber without the express consent of the council.

The following are excerpts from the Penal Code
148(a) (1) Every Person who willfully resists, delays, or obstructs any public officer, peace officer, or an emergency medical technician, as defined in Division 2.5 (commencing with Section 1797) of the Health and Safety code, in the discharge or attempt to discharge any duty of his or her office or employment, when no other punishment is prescribed, shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in a county jail not to exceed one year, or by both that fine and imprisonment. 403 Every person who, without authority of law, willfully disturbs or breaks up any assembly or meeting that is not unlawful in its character, other than an assembly or meeting referred to in Section 303 of the Penal Code or Section 18340 of the Elections Code, is guilty of a misdemeanor.

AGENDA ITEM NO. 1

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: February 18, 2025
TO: Mayor and City Council
FROM: Paulina Morales, City Manager
SUBJECT: CONSIDERATION OF APPROVAL OF THE DECEMBER 17, 2024, CITY

RECOMMENDATION:

BACKGROUND:

That the City Council adopt the attached minutes.

Prepared by: Lisa Sherrick, Assistant City Clerk
Attachments
Attachment No. 1 - 12/17/2024 Regular Session Minutes Draft Attachment No. 2 - 2/4/2025 Closed Session Minutes Draft Attachment No. 2 - 2/4/2025 Regular Session Minutes Draft CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness ATTACHMENT NO. 1
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
DECEMBER 17, 2024, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
Councilman Brian Gutierrez

MINUTES

INVOCATION
Led by Chaplain Kelly Dupee from West Covina Police Department PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Lopez-Viado
ROLL CALL
Council Members

Present: Council Members Rosario Diaz, Ollie Cantos, Brian Gutierrez, Mayor Pro Tem Letty Lopez Viado, Mayor Wu
ATTACHMENT NO. 1

Absent: None
REPORTING OUT FROM CLOSED SESSION
There was no Closed Session

PRESENTATIONS
 Grace Napolitano Final Legislative Update - Video
 Emma Ousterhout - Sports League Update
 Chinese American Association of West Covina - Presentation of Donations o Hollencrest Middle School
o Ballet Folklorico
 Resolution of Commendation for Retired Fire Caption Todd Smith  Resolution of Commendation for Police Chief Richard Bell CITY MANAGER'S REPORT
City Manager's report on current City projects.

ORAL COMMUNICATIONS - Five (5) minutes per speaker
Albert Ochoa
Lola Finley
Glenn Kennedy
Mario Sobalvarro
CONSENT CALENDAR
ACTION: Motion by Councilmember Diaz and Second by Mayor Pro Tem LopezViado, 5-0 to: Approve Consent Calendar Items 2-4 (Councilmember Gutierrez abstained on item number 1)
ACTION: Motion by Councilmember Diaz and Second by Mayor Pro Tem, 4-0-10 to: Approve Consent Calendar Item 1 (Councilmember Gutierrez abstained on item number 1)
APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE DECEMBER 3, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE DECEMBER 3, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

Carried 4-0-1 to (Abstain: Gutierrez): approve the December 3, 2024, City Council/Successor Agency Regular Session Meeting Minutes and the December 3, 2024, City Council/Successor Agency Regular Closed Session Meeting Minutes.

CITY MANAGER'S OFFICE
ATTACHMENT NO. 1
2) CONSIDERATION OF MAYORAL APPOINTMENT OF CITY COUNCIL MEMBER REPRESENTATIVES TO VARIOUS ADVISORY BOARDS AND COMMITTEES

Carried 5-0 to: adopt the following resolution:

RESOLUTION NO. 2024-10 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING APPOINTMENTS OF COUNCIL MEMBERS TO SERVE ON VARIOUS ADVISORY BOARDS
AND COMMITTEES
FINANCE DEPARTMENT
3) CONSIDERATION OF APPROVAL AND TRANSMITTAL OF AN
ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (“ROPS”) FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2026 FOR THE SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY
Carried 5-0 to: the City Council, acting as the Successor Agency to the former West Covina Redevelopment Agency, adopt the following resolution:

RESOLUTION NO. 2024-71 – A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING THE TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (“ROPS”) FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2026
4) CONSIDERATION OF INCREASE IN HOURLY RATES FOR LIMITED SERVICE COMPENSATION SCHEDULE TO REFLECT INCREASE IN STATE HOURLY MINIMUM WAGE EFFECTIVE JANUARY 1, 2025
Carried 5-0 to:

1. Approve wage adjustments to limited services positions to bring them into compliance with the State’s minimum wage requirement effective January 1, 2025; and

2. Adopt the following Resolution:

RESOLUTION NO. 2024-69 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING THE LIMITED SERVICE COMPENSATION SCHEDULE FOR CONSISTENCY WITH STATE LAW

END OF CONSENT CALENDAR

MAYOR/COUNCILMEMBERS REPORTS
None
ATTACHMENT NO. 1
CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION  Lopez-Viado: Requested to have the largest Christmas Tree that staff can get. – No Objection
 Cantos: Latest substantive update on Amar and Westport by 1st Meeting in February (left turn dedicated light). – No objection
 Lopez-Viado: Resolution regarding the increase to insurance premiums at the next meeting. – No Objection.
 Gutierrez: Direct staff regarding CIP Project C24001Del Norte Park to issue a RFP with a focus on a dog park and restroom renovations no later than early February and bring back an selection of contact by April the 15th Council Meeting. – No objection.
 Gutierrez: Presentation by Public Works detailing their duties, what defines a fullservice maintenance department what they’re capable of doing in house verses vs contracting. – No objection
 Gutierrez: Expand the scope of services on the Engineering Services RFP/staff report to provide services for in-house engineering demonstrating the pros and cons of cost savings. - No objection
 Gutierrez: Repaint turn lane and crosswalk markings on Vicent and Puente Ave on an interim basis, until the contractor can complete the ongoing work. – No objection
 Gutierrez: Public Works to conduct beautification on the middle islands along Sunset and Vincent, noting if there is cost savings to have it done in-house vs contractor. – No objection
 Gutierrez: To review the PMP and see what streets in District 1 are in dire need of repair when they can be repaired. – No objection
 Gutierrez: Find ways to run council meeting more efficiently – ASAP. – No objection
 Gutierrez: Include in the Parks Plan to develop a plan for Orangewood Park to include reimaging the park as Orangewood Sports Center integrating the hockey rink to the public, youth programs, and an accessible pathway to the whole park, including renovations to the soccer complex, skate park, hockey rink. This will be titled the Orangewood Sports Center Community Dream Project and including inclusivity make it fully accessible. – No objection.
 Gutierrez: Review the Traffic Committee rules and bylaws and return with recommendations, (Change the time of the meeting and reform who the voting members are) – No objections
 Gutierrez: Bring back at the January 21st Council Meeting a current list of Form 700 Form filers including contractors, staff, and officials – No objection  Gutierrez: Have the Police Department establishing more ccv cameras and metal detectors in chambers and around city hall by the 2nd meeting in February with potential funding sources. – No objection
ATTACHMENT NO. 1
 Cantos/Lopez-Viado/Diaz: Looking into establishing a budget to install cameras and lights in the 16 parks or park parking lot
 Gutierrez: Update on the status of the HOPE Team and ways to get additional resources to expand the Team and the new provisions of Measure A money (Cantos). Return no later than the 2nd meeting in April. – No objection  Gutierrez: Police Department to establish additional resources for the Neighborhood Watch Program and report by the 2nd meeting in March (What resources we are providing and what else is needed). – No objection  Gutierrez: Instruct the Traffic Engineering division to find solutions to reduce speed on Workman and Orange Ave. – No objection.
 Gutierrez: Staff to research look into rubber stripping on streets in place of speedbumps, return by the 2nd meeting in March. – No Objection  Cantos – Request that the Police Department reinvigorate the Seniors Helping Our Police Program (possibly adjusting the age to allow for additional volunteers), and the Citizens Academy. - No objection
CITY COUNCIL COMMENTS
 Gutierrez – Thanked City Manager for working with Public Works Maintenance staff for trimming the trees at Orangewood Park, and there has been a donation of 176 led light fixtures for our parks and wish all residents a Merry Christmas and a Happy New Year.
 Cantos – Thanked residents for everyone’s engagement and the opportunity to be responsive. Cantos wished everyone the happiest Holiday Season.  Lopez-Viado – thanked all staff for all their hard work, the events are exceptional.

The residents are very happy and appreciative. Lopez-Viado wished everyone a Happy Holiday.
 Diaz – Stated that she is excited that so many streets have been repaved and how beautiful park Cameran had become with the installation of the sod. Diaz wished everyone a Merry Christmas and a Happy New Year.  Wu – Stated that it’s an honor to be Mayor again and to help each other. Finish the projects that we start (finish up lighting project). Wu wished everyone a Merry Christmas thanked staff and colleges, and a Happy New Year.

ADJOURNMENT
A motion to adjourn the Regular Meeting was made at 10:02 PM The next regularly scheduled Regular City Council Meeting will be held on Tuesday, January 7, 2025, at 7:00 p.m. in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California.
____________________________
Lisa Sherrick
Assistant City Clerk
ATTACHMENT NO. 1
__________________________
Tony Wu
Mayor

ATTACHMENT NO. 2
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
FEBRUARY 4, 2025, 6:00 PM
REGULAR MEETING - CLOSED SESSION
MANAGEMENT RESOURCE CENTER 3RD FLOOR
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
Councilmember Brian Gutierrez

MINUTES
CALL TO ORDER
A Regular Session Meeting was called to order by Mayor Tony Wu on Tuesday, February 4, 2025, at 6:00 p.m., in the Management Resource Center, 1444 West Garvey Avenue South, West Covina, California.

ROLL CALL
Council Members

Present: Council Members Rosario Diaz, Ollie Cantos (Arrived at 6:15 PM), Brian Gutierrez, Mayor Pro Tem Letty Lopez-Viado, Mayor Tony Wu

Absent:

City Staff: Paulina Morales, City Manager(Arrived at 6:10), Roxanne Lerma, Assistant City Manager, Thomas Duarte, City Attorney, Stephanie Sikkema, Finance Director, Derek Straatsma, Goldman Magdalin Straatsma
ATTACHMENT NO. 2
PUBLIC COMMENTS ON ITEMS ON THE AGENDA
Armondo Herman
Male Person (Refused to state a name)
CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Initiation of litigation pursuant to Government Code § 54956.9(d)(4) Number of Cases: One (1)

2. CONFERENCE WITH LABOR NEGOTIATORS - Pursuant to Government Code § 54957.6
City Negotiators: Morales, Duarte
Employee Organizations
 Confidential Employees
 Maintenance & Crafts Employees
 Non-Sworn
 W.C. Police Officers’ Association
 W.C. Firefighters’ Management Assoc.
 W.C. Firefighters’ Association, I.A.F.F., Local 3226
 General Employees
 Mid-Management Employees
 W.C. Police Management Association
Unrepresented Employee Group
 Department Heads
REPORTING OUT
City Attorney Thomas Duarte reported that no action was taken during the Closed Session Meeting.
-THIS SECTION INTENTIONALY LEFT BLANK-
ATTACHMENT NO. 2

ADJOURNMENT
A motion to adjourn the Regular Closed Meeting was made by Mayor Tony Wu, and the meeting was adjourned at 6:453p.m. The next regularly scheduled Regular Closed City Council Meeting will be held on Tuesday, February 18, 2025, at 6:00 p.m. in the Management Resource Center 3rd Floor, 1444 West Garvey Avenue South, West Covina, California.

Submitted By:
____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Tony Wu
Mayor

ATTACHMENT NO. 3
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
FEBRUARY 4, 2025, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
Councilmember Brian Gutierrez

MINUTES

INVOCATION
Led by Pastor Samuel Martinez from Amazing Love Ministries PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Lopez-Viado
ROLL CALL
Council Members

Present: Council Members Rosario Diaz, Ollie Cantos, Brian Gutierrez, Mayor Pro Tem Letty Lopez Viado, Mayor Wu

Absent: None
ATTACHMENT NO. 3
REPORTING OUT FROM CLOSED SESSION
City Attorney Thomas Durate reported that no action was taken during the Closed Session Meeting.

PRESENTATIONS
 Resolution of Commendation and Key to the City Presented to Congresswoman Grace Napolitano
 Proclamation Proclaiming February as Black History Month  Presentation: Financial Overview of West Covina Sportsplex CITY MANAGER'S REPORT
City Manager's report on current City projects.

ORAL COMMUNICATIONS - Three (3) minutes per speaker.

CONSENT CALENDAR
ACTION: Motion by Mayor Pro Tem Lopez-Viado and Second by Councilwoman Diaz, 5-0 to: Approve Consent Calendar Item 1,2,and 4 (Item number 3 was pulled by Councilmember Gutierrez)
Motion by Councilwoman Diaz and Second by Councilman Cantos, 4-0-1 (Abstain by Councilmember Gutierrez) to: Approve Consent Calendar Item 3 (Item number 3 was pulled by Councilmember Gutierrez)
APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE JANUARY 7, 2025, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES, THE JANUARY 21, 2025, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE JANUARY 21, 2025, CITY COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING MINUTES.

Carried 5-0 to: approve January 7, 2025, City Council/Successor Agency Regular Session Meeting Minutes, the January 21, 2025, City Council/Successor Agency Regular Session Meeting Minutes and the January 21, 2025, City Council/Successor Agency Closed Session Meeting Minutes.

ORDINANCES FOR ADOPTION - Procedural Waiver.
2) CONSIDERATION OF ADOPTION OF ORDINANCE NO. 2526 AMENDING CHAPTER 22 OF THE WEST COVINA MUNICIPAL CODE RELATING TO STREET SWEEPING REGULATIONS AND ENFORCEMENT AND RESOLUTION
DESIGNATING DAYS AND HOURS AND STREETS WHERE PARKING
PROHIBITION APPLIES
ATTACHMENT NO. 3
Carried 5-0 to:

1. Adopt the following ordinance:

ORDINANCE NO. 2526 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CHAPTER 22 (TRAFFIC
REGULATIONS) OF THE WEST COVINA MUNICIPAL CODE RELATING TO STREET SWEEPING REGULATIONS AND ENFORCEMENT AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) (COMMON SENSE EXEMPTION)

2. Adopt the following resolution:

RESOLUTION NO. 2025-10 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DESIGNATING THE DAYS AND HOURS PARKING IS PROHIBITED ON SPECIFIED STREETS AND ALLEYS OR PORTIONS THEREOF TO FACILITATE STREET SWEEPING
CITY MANAGER'S OFFICE
3) CONSIDERATION OF RESOLUTION TERMINATING THE LOCAL EMERGENCY RELATING TO THE SEVERE WINDSTORM
Carried 4-0-1 (Abstain: Gutierrez) to: adopt the following resolution:

RESOLUTION NO. 2025-9 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, PROCLAIMING THE TERMINATION OF THE LOCAL EMERGENCY PROCLAIMED ON JANUARY 9, 2025 RELATING TO THE SEVER WINDSTORM
PUBLIC WORKS
4) CONSIDERATION OF FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH SOUTH COAST, LLC DBA SOUTH COAST EMERGENCY VEHICLE SERVICE
Carried 5-0 to: authorize the City Manager to execute the First Amendment to the Professional Services Agreement with South Coast LLC, dba South Coast Emergency Vehicle Service providing for a month-to-month extension of the agreement.

END OF CONSENT CALENDAR

HEARINGS
ATTACHMENT NO. 3
PUBLIC HEARINGS
5) CONSIDERATION OF PRECISE PLAN NO. 24-01, ZONE CHANGE NO. 24-01 (ORDINANCE NO. 2527) AND MITIGATED NEGATIVE DECLARATION TO ALLOW THE CONSTRUCTION OF A NEW TWO-STORY 85,390 SQUARE FOOT
DEALERSHIP BUILDING AND CHANGE THE ZONING FOR A PORTION OF THE PROJECT SITE CURRENTLY ZONED NEIGHBORHOOD COMMERCIAL MIXED USE (NMU) TO SERVICE COMMERCIAL MIXED USE (SMU) WITHIN THE AUTO PLAZA OVERLAY ZONE AT 1800 E. GARVEY AVENUE AND 200 S. AZUSA AVENUE
Public Comments in Favor
Linda Francis
Public Comments Neither in Favor nor Opposed
None
Public Comments in Opposition
None
---End of Public Comment---
ACTION: Motion by Councilman Cantos and Second by Councilwoman Diaz, 4-0-1 (Abstain: Gutierrez) to: Adopt the following resolution to adopt the Mitigated Negative Declaration:

RESOLUTION NO. 2025-7 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A MITIGATED NEGATIVE DECLARATION AND APPROVING AND ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM FOR ZONE CHANGE NO. 24-01 AND PRECISE PLAN NO. 24-01 AT 1800 EAST GARVEY AVENUE SOUTH AND 200 SOUTH AZUSA AVENUE PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ACTION: Motion by Mayor Pro Tem Lopez-Viado and Second by Councilwoman Diaz, 4- 0-1 (Abstain: Gutierrez) to: Introduce the following ordinance to adopt Zone Change No. 24- 01:

ORDINANCE NO. 2527 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA ADOPTING ZONE CHANGE NO. 24-01, REZONING A PROPERTY (200 SOUTH AZUSA AVENUE) IN THE NEIGHBORHOOD COMMERICAL MIXED-USE ZONE (NMU) TO SERVICE COMMERCIAL MIXED USE (SMU) WITHIN THE AUTO PLAZA OVERLAY
ATTACHMENT NO. 3
ACTION: Motion by Councilwoman Diaz and Second by Councilman Cantos, 4-0-1 (Abstain:

Gutierrez) to: Adopt the following resolution:

RESOLUTION NO. 2025-8 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING PRECISE PLAN NO. 24-01 FOR THE PROPERTY LOCATED AT 1800 EAST GARVEY AVENUE SOUTH AND 200 SOUTH AZUSA AVENUE
DEPARTMENTAL REGULAR MATTERS

FINANCE DEPARTMENT
6) CONSIDERATION OF A CORRECTIVE ACTION PLAN IN RESPONSE TO STATE AUDITOR REPORT 2024-801
Motion by Mayor Pro Tem Lopez-Viado and Second by Councilman Gutierrez, 5-0 to: approve the following:

1. Proposed Corrective Action Plan in response to the Local High Risk Program Report 2024-801 issued by the State Auditor;

2. Authorize staff to transfer $1,787,000 from the Other Post-Employment Benefit (OPEB) Internal Service Fund back to the General Fund; and

3. Authorize staff to issue a Request for Proposals for investment management and advisory services to evaluate the City's full portfolio and recommend changes to maximize the return of assets.

MAYOR/COUNCILMEMBERS REPORTS
 None
CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION  Cantos: Instruct the Fire Chief to inspect every single fire hydrant to make sure they are in working order and to check the water pressure. Have the City Manager to get back to the Council withing a time frame. – No objection. Provide update on the number of hydrants and who is responsible for maintaining them.  Cantos: Invite Athens to present on Earth Day the importance of recycling, highlighting how residents can better improve the environment. – No objection.  Gutierrez: By the March 4th Council Meeting a resolution amending the purchasing threshold for the City Manager to $50,000. – No objection  Gutierrez: By the March 4th Council Meeting reform the Traffic Committee bylaws. – No objection
 Gutierrez: Reject bids and reissue RFP for the restaurant at the Sportsplex by the March 4th Council Meeting and provide an update to Council. – No objection CITY COUNCIL COMMENTS
ATTACHMENT NO. 3
 Councilman Cantos mentioned that he is able to dedicate additional time to City activities because he has been placed on Administrative Leave at his current job.  Mayor Pro Tem Lopez-Viado asked for Council to be brought up to speed on any impacts the new Executive Orders might have on West Covina.  Councilwoman Diaz would like to make sure West Covina Police Officers are prepared to handle any riots or protestors.
 Council mentioned they would like various upgrades to the Council Chambers such as new chairs, new monitor/projector or larger font on the screen and camera resolution.

ADJOURNMENT
A motion to adjourn the Regular Meeting was made at 9:53 PM The next regularly scheduled Regular City Council Meeting will be held on Tuesday, February 18, 2025, at 7:00 p.m. in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California. ____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Tony Wu
Mayor

AGENDA ITEM NO. 2

COVINA MUNICIPAL CODE RELATING TO PUBLIC PARTICIPATION AND DECORUM DURING CITY COUNCIL MEETINGS AND RESOLUTION NO. 2025-15

CHANGING THE ORDER OF BUSINESS FOR REGULAR CITY COUNCIL MEETINGS RECOMMENDATION:

It is recommended that the City Council:

1. Introduce the following ordinance:

WEST COVINA MUNICIPAL CODE RELATING TO PUBLIC PARTICIPATION AND DECORUM

AT CITY COUNCIL MEETINGS

2. Adopt the following resolution:

RESOLUTION NO. 2025-15 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST

COVINA, CALIFORNIA, CHANGING THE ORDER OF BUSINESS FOR REGULAR CITY

COUNCIL MEETINGS
BACKGROUND:

West Covina holds its City Council meetings on the 1st and 3rd Tuesday of the month and the current order of business is the following:
(a) Call to Order
(b) Invocation
(c) Pledge of Allegiance
(d) Roll Call
(e) Reporting Out from Closed Session
(f) Presentations
(g) City Manager’s Report
(h) Oral Communications
(i) Consent Calendar
(j) Departmental Regular Matters
(k) Mayor/Council Reports
(l) City Council Requests for Reports, Studies or Investigation (m) City Council Comments
(n) Adjournment.

DISCUSSION:

At the December 17, 2024 City Council meeting, Councilmember Gutierrez requested that the City Council consider looking at ways to make City Council meetings more efficient. City staff did a survey of agendas for sixteen local cities and agencies. The survey focused on the City Council meeting agenda (not closed session). The following is a summary of some of the findings:

Oral Communication
Oral communication varies from 1 minute to 5 minutes, with the majority surveyed at 3 minutes.

Most cities can change the allocated speaker time, either based on Mayor/Council discretion, or the number of speakers.

Some cities require public comment cards to be submitted by a specified timeframe (to finalize the number of public speakers).

Some cities do not allow additional public comment cards to be submitted once the public comment period begins.

To ensure the business of the City is completed, most cities include language in the agenda that limits public comments at the beginning of the meeting, allowing public comments at the end of the meeting.

Regarding Public Hearing public comment, most cities keep the public speaker time consistent with the oral communication portion of the meeting; few allow longer speaker time for Public Hearings Participation
The majority of the cities accept written participation with a deadline to be included in the record of public meetings.

There are other changes that could facilitate City Council meeting efficiency, including but not limited to the order of the agenda and number of presentations.

At the City Council meeting on January 21, 2025, the Council directed staff to implement the following changes to enhance the efficiency and decorum of meetings:

Adjust Oral Communications Time Limit: Limit individual oral communications to three (3) minutes.

At the discretion of the Mayor, this time may be modified as needed.

Require Advance Submission of Speaker Cards: Speaker cards must be submitted before the start of oral communications. This allows the Assistant City Clerk to finalize the number of speakers, ensuring a more organized and efficient process.

Enhance Rules of Decorum: Strengthen the language in the Rules of Decorum to minimize disruptions and promote civility among all attendees, including revising the language on the agenda regarding addressing the City Council.

Reorder the City Manager’s Report: Move the City Manager’s Report to follow oral communications to improve meeting flow.

To implement these changes, the City Council must adopt a resolution to modify the Order of Business to move the City Manager’s Report to after Oral Communications. Additionally, an ordinance is required to amend the provisions of Division 2 (Meetings and Rules of Procedure) of Article II (City Council) of Chapter 2 (Administration) of the West Covina Municipal Code to:

Require the advance submission of speaker cards.

Adjust oral communications to a three-minute limit, unless modified by the Presiding Officer or the City Council.

Strengthen the language governing the Rules of Decorum.

Finally, staff intends to revise the language on the agenda regarding addressing the City Council in accordance with the direction provided by the City Council during the January 21, 2025 meeting.

The changes to the Municipal Code and the agenda are shown in redline format in Attachment No. 2.

Pursuant to the City Council's direction, these updates aim to foster a more structured, respectful, and effective public meeting environment.

LEGAL REVIEW:

The City Attorney's Office has reviewed the ordinance and resolution and approved them as to form.

Prepared by: Paulina Morals, City Manager
Fiscal Impact
FISCAL IMPACT:

This is strictly an administrative item, therefore; there is no fiscal impact associated with this action.

Attachments
Attachment No. 1 - Ordinance No. 2528
Attachment No. 2 - Redline of Changes
Attachment No. 3 - Resolution No. 2025-15
ATTACHMENT NO. 1
Ordinance No. 2528

Page 1 of 6 ends

ORDINANCE NO. 2528

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, AMENDING PROVISIONS
OF DIVISION 2 (MEETINGS AND RULES OF

PROCEDURE) OF ARTICLE II (CITY COUNCIL) OF
CHAPTER 2 (ADMINISTRATION) OF THE WEST COVINA

MUNICIPAL CODE RELATING TO PUBLIC

PARTICIPATION AND DECORUM AT CITY COUNCIL

MEETINGS
The City Council of the City of West Covina hereby finds and declares as follows:

WHEREAS, California Government Code section 36813 authorizes the City Council to establish rules for the conduct of its proceedings, and to punish a member or other person for disorderly behavior at a meeting; and
WHEREAS, California Government Code section 54954.3(b) authorizes the City Council to adopt reasonable regulations regarding public participation at meetings, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker; and WHEREAS, California Government Code section 54957.95 authorizes the presiding officer of a meeting or their designee to remove, or cause the removal of, an individual for disrupting the meeting; and
WHEREAS, the provisions of Division 2 (Meetings and Rules of Procedure) of Article II (City Council) of Chapter 2 (Administration) of the West Covina Municipal Code set forth regulations relating to public participation and decorum at City Council meetings; and
WHEREAS, it is the desire and duty of the City Council to ensure its business is conducted in an orderly, efficient, and fair manner and to ensure that the public has a full opportunity to be heard on all matters of interest to the community; and WHEREAS, disruptive conduct at meetings prevents the City Council from accomplishing its business in an orderly, efficient, and fair manner, and may interfere with the right of other individuals to be heard; and
WHEREAS, the City Council respects an individual speaker’s right to disagree and express his or her own opinions and beliefs; and
WHEREAS, the City Council desires to encourage more members of the public to attend and participate in City Council meetings by improving the efficiency of its meetings and strengthening its rules of decorum; and
Ordinance No. 2528

Page 2 of 6 ends

WHEREAS, the City Council desires to amend provisions of Division 2 (Meetings and Rules of Procedure) of Article II (City Council) of Chapter 2 (Administration) of the West Covina Municipal Code relating to public participation and decorum at City Council meetings; and
WHEREAS, all legal requirements prior to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The City Council finds that all of the facts and findings set forth in the recitals to this Ordinance are true and correct.

SECTION 2. Amendment to Section 2-47. Section 2-47 of Division 2 of Article II of Chapter 2 of the West Covina Municipal Code shall be amended to read as follows:

Sec. 2-47. - Addressing the council.

Pursuant to the California Government Code, any person wishing to address the city council on any matter on the agenda or on any other matter within their jurisdiction, excluding any matter set for a public hearing, may do so upon first securing the recognition of the presiding officer during the time designated for oral communications.

The city council may not act on any item unless it is listed on the agenda.

SECTION 3. Amendment to Section 2-48. Section 2-48 of Division 2 of Article II of Chapter 2 of the West Covina Municipal Code shall be amended to read as follows:

Ordinance No. 2528

Page 3 of 6 ends

(d) All remarks shall be addressed to the city council as a body and not to any member thereof. No person, other than the city council and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the city council, without the permission of the presiding officer. No question shall be asked of a council member except through the presiding officer. (e) The presiding officer may require any person to be sworn as a witness before addressing the city council on any subject. Any such person who, having taken an oath that he or she will testify truthfully, willfully and contrary to such oath states as true any material matter which he knows to be false may be held to answer criminally and subject to the penalty prescribed for perjury by the provisions of the California Penal Code.

SECTION 4. Amendment to Section 2-50. Section 2-50 of Division 2 of Article II of Chapter 2 of the West Covina Municipal Code shall be amended to read as follows:

Sec. 2-50. - Decorum—Required.
(a) While the city council is in session, council members shall preserve order and decorum, and a council member shall neither, by conversation or otherwise, delay or disrupt the proceedings or the peace of the council nor interrupt any council member while speaking or refuse to obey the orders of the council or its presiding officer, except as otherwise herein provided.
(b) Members of the public shall not willfully disrupt the meeting or act in a manner that actually disrupts, disturbs, impedes, impairs, or renders infeasible the orderly conduct of the meeting. For the purposes of this Code, “willfully disrupt” includes, but is not limited to, continuing to do any of the following after being warned by the presiding officer that the behavior is disrupting the meeting and failure to cease the behavior may result in removal from the meeting:
(1) Addressing the mayor or city council without first being recognized. (2) Persisting in addressing a subject or subjects, other than that before the mayor and city council.
(3) Repetitiously addressing the same subject.
(4) Failing to relinquish the podium when directed to do so. (5) From the audience, interrupting or attempting to interrupt, a speaker, the presiding officer, a council member, or a staff member, or shouting or attempting to shout over a speaker, the presiding officer, a council member or a staff member.

Ordinance No. 2528

Page 4 of 6 ends

(6) From the audience, engaging in disorderly, disruptive, or boisterous conduct, including, but not limited to, handclapping, stomping of feet, whistling, making noise, use of abusive, threatening or profane language or obscene gestures, yelling, obstructing the view of other audience members, or similar conduct which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.
(7) As a speaker, making slanderous or profane remarks or using loud, threatening, or abusive language which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting; interrupting or attempting to interrupt the presiding officer, a council member, or a staff member; shouting over or attempting to shout over the presiding officer, a council member, or a staff member; or engaging in any other disorderly conduct which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.

Nothing in this section or any rules of the city council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the city or of the acts or omissions of the city council.
(8) Engaging in behavior that constitutes use of force or a true threat of force. (c) It shall be unlawful to violate the provisions of this section. A person violating this section may be removed and barred from further participation at the meeting at which the violation occurs.
(d) If any subsection, sentence, clause, or phrase or word of this section 2-50 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this section. The city council hereby declares that it would have passed this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or words had been declared invalid or unconstitutional.

SECTION 5. Amendment to Section 2-51. Section 2-51 of Division 2 of Article II of Chapter 2 of the West Covina Municipal Code shall be amended to read as follows:

Sec. 2-51. - Enforcement of decorum.

The chief of police or any member or members of the police department or other members of the city staff may be designated by the council to be sergeant-at-arms when, in the opinion of the presiding officer, the services of a sergeant-at-arms is necessary, and the sergeant-at-arms shall carry out all orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in accordance with section 2-50 at the council meeting, including, but not limited to, removing and barring from further participation at the meeting any person who is willfully disrupting the orderly conduct of the meeting.

Ordinance No. 2528

Page 5 of 6 ends

SECTION 6. Amendment to References to Government Code. All references in Division 2 of Article II of Chapter 2 of the West Covina Municipal Code to “Government Code” shall be amended to read “California Government Code.” SECTION 7. Environmental Compliance. The City Council hereby finds that it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance will have a significant effect on the environment. The Ordinance is therefore exempt from the environmental review requirements of the California Environmental Quality Act pursuant to Section 15061(b)(3) (General Rule) of Title 14 of the California Code of Regulations.

SECTION 8. Inconsistencies. Any provision of the West Covina Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance.

SECTION 9. Severability. If any section, subsection, clause or phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of all other provisions of this Ordinance. The City Council of West Covina hereby declares that it would have passed this Ordinance, and each section, subsection, sentence, clause and phrase or portion thereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses, or phrases or portions thereof be declared invalid or unconstitutional.

SECTION 10. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

SECTION 11. Certification; Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted as required by law.

PASSED, APPROVED AND ADOPTED this _____ day of _______, 2025. ________________________
Tony Wu
Mayor
Ordinance No. 2528

Page 6 of 6 ends

APPROVED AS TO FORM ATTEST
________________________ ________________________
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )

CITY OF WEST COVINA )
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Ordinance No. 2528 was introduced at a regular meeting of the City Council held on the 18th day of February, 2025, and adopted at a regular meeting of the City Council held on the _______ day of ________, 2025, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
Lisa Sherrick
Assistant City Clerk
ATTACHMENT NO. 2
A. REDLINE OF REVISIONS TO DIVISION 2 OF ARTICLE II OF CHAPTER 2 Sec. 2-47. - Addressing the council.

Sec. 2-48. - Manner of addressing city council; time limit; persons addressing may be sworn.
(a) Each person wishing to address the city council shall submit a speaker card to the city clerk prior to the commencement of the time designated for oral communications. No speaker cards will be accepted after the commencement of oral communications, except at the discretion of the presiding officer. (b) When called forward by the presiding officer or the city clerk, eEach person addressing the city council shall step up to the podiumrostrum, shall and give his or her name and city of residence in an audible tone of voice for the record. and unless further time is granted by the council, shall limit his or her address to five (5) minutes.
(c) Each person addressing the city council during oral communications shall limit his or her comments to three (3) minutes, unless the time limit is modified by the presiding officer or the city council. In order to provide all speakers the opportunity to participate in oral communications, the presiding officer or the city council may reduce the time limit allow reasonable time for all speakers to address the city council.
(a)
(b) The city council may establish a limit on the duration of oral communications. (c)(d) All remarks shall be addressed to the city council as a body and not to any member thereof. No person, other than the city council and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the city council, without the permission of the presiding officer. No question shall be asked of a council member except through the presiding officer. (d)(e) The presiding officer may require any person to be sworn as a witness before addressing the city council on any subject. Any such person who, having taken an oath that he or she will testify truthfully, willfully and contrary to such oath states as true any material matter which he knows to be false may be held to answer criminally and subject to the penalty prescribed for perjury by the provisions of the California Penal Code.

Sec. 2-50. - Decorum—Required.
(a) While the city council is in session, councilthe members shall preserve order and decorum, and a council member shall neither, by conversation or otherwise, delay or disrupt the proceedings or the peace of the council nor interrupt any council member while speaking or refuse to obey the orders of the council or its presiding officer, except as otherwise herein provided.
(b) Members of the public shall not willfully disrupt the meeting or act in a manner that actually disrupts, disturbs, impedes, impairs, or renders infeasible the orderly conduct of the meeting. For the purposes of this Code, “willfully disrupt” includes, but is not limited to, continuing to do any of the following after being warned by the mayor presiding officer that the behavior is disrupting the meeting and failure to cease the behavior may result in removalcontinuing to do so will be a violation of law from the meeting:
(1) Addressing the mayor or and city council without first being recognized. (2) Persisting in addressing a subject or subjects, other than that before the mayor and city council.
(3) Repetitiously addressing the same subject.
(4) Failing to relinquish the podium when directed to do so. (5) From the audience, interrupting or attempting to interrupt, a speaker, the presiding officermayor, a council member, or a staff member, or shouting or attempting to shout over a speaker, the presiding officer mayor, a council member or a staff member.
(6) From the audience, engaging in disorderly, disruptive, or boisterous conduct, including, but not limited to, handclapping, stomping of feet, whistling, making noise, use of abusive, threatening or profane language or obscene gestures, yelling, obstructing the view of other audience members, or similar conduct which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.
(7) As a speaker, making slanderous or profane remarks or using loud, threatening, or abusive language which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting; interrupting or attempting to interrupt the presiding officer, a council member, or a staff member;, or shouting over or attempting to shout over the presiding officer mayor, a council member, or a staff member; or engaging in any other disorderly conduct which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.

Nothing in this section or any rules of the city council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the city or of the acts or omissions of the city council. It shall be unlawful to violate the provisions of this section.
(6)(8) Engaging in behavior that constitutes use of force or a true threat of force. (c) It shall be unlawful to violate the provisions of this section. A person violating this section may be removed and barred from further participation at the meeting at which the violation occurs.
(c)(d) If any subsection, sentence, clause, or phrase or word of this section 2-50 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this section. The city council hereby declares that it would have passed this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or words had been declared invalid or unconstitutional.

Sec. 2-51. - Same—Enforcement of decorum.

B. REDLINE OF LANGUAGE ON AGENDA REGARDING ADDRESSING THE CITY

COUNCIL

PUBLIC COMMENTS

ADDRESSING THE CITY COUNCIL
(Per WCMC 2-48, Ordinance No. 2150)
Any person wishing to address the City Council on any matter listed on the agenda, excluding any matter set for a public hearing, or on any other matter within their jurisdiction mustshould complete a speaker card that is provided at the entrance to the Council Chambers and submit the card to the City Clerk prior to the commencement of Oral Communications. No speaker cards will be accepted after the commencement of Oral Communications, except at the discretion of the Presiding Officer.

Please identify on the speaker card whether you are speaking on an agenda item or nonagenda. Requests to speak on agenda items will be heard prior to requests to speak on non-agenda items. CAll comments are limited to threefive (35) minutes per speaker, unless modified by the Presiding Officer or the City Council..

Oral Communications may be limited to thirty (30) minutes, unless speakers addressing agenda items have not concluded.

Any testimony or comments regarding a matter set for a pPublic hHearing will be heard during the hearing.

While members of the public are free to level criticism of City policies and the action(s) or proposed action(s) of the City Council or its members, members of the public may not engage in behavior that is disruptive to the orderly conduct of the meeting, including, but not limited to, speaking off topic, speaking beyond the speaker’s allotted time limit, making slanderous or profane remarks or using loud, threatening, or abusive language which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.

Members of the public may not threaten any person with physical harm or act in a manner that may reasonably be interpreted as an imminent threat of physical harm. The City of West Covina will not tolerate harassment based upon a person’s race, religious creed, color, national origin, ancestry, disability, medical condition, marital status, gender, sexual orientation, or age.

ATTACHMENT NO. 3
RESOLUTION NO. 2025-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, CHANGING THE ORDER

OF BUSINESS FOR REGULAR CITY COUNCIL MEETINGS
The City Council of the City of West Covina hereby finds and declares as follows:

WHEREAS, Section 2-37 of the West Covina Municipal Code provides in relevant part that at regular City Council meetings, the business of the Council shall be taken up for consideration and disposition in the order established by the Council; and WHEREAS, the current order of business is as follows:
(a) Call to Order
(b) Invocation
(c) Pledge of Allegiance
(d) Roll Call
(e) Reporting Out from Closed Sessin
(f) Presentations
(g) City Manager’s Report
(h) Oral Communications
(i) Consent Calendar
(j) Departmental Regular Matters
(k) Mayor/Council Reports
(l) City Council Requests for Reports, Studies or Investigation (m) City Council Comments
(n) Adjournment; and
WHEREAS, the City Council desires to improve the meeting process by adjusting the order of business.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The order of business for regular City Council meeting agendas shall be as follows:
(a) Call to Order
(b) Invocation
(c) Pledge of Allegiance
(d) Roll Call
(e) Reporting Out from Closed Sessin
(f) Presentations
(g) Oral Communications
(h) City Manager’s Report
(i) Consent Calendar
(j) Departmental Regular Matters
(k) Mayor/Council Reports
(l) City Council Requests for Reports, Studies or Investigation (m) City Council Comments
(n) Adjournment.

SECTION 2. All prior resolutions or policies which adopted the order of business for regular City Council meetings are hereby repealed.

SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately.

APPROVED AND ADOPTED this 18th day of February, 2025.

Tony Wu
Mayor

APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2025-15 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 18th day of February, 2025, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk
AGENDA ITEM NO. 3

It is recommended that the City Council approve the Traffic Committee recommendations detailed in the staff report for traffic engineering improvements Citywide from the meetings held between November 2024 through January 2025.

BACKGROUND:

The West Covina Traffic Committee regularly meets and holds public meetings on the 2nd Tuesday of each month. The Traffic Committee consists of the Capital Improvements Program Manager, the Deputy Community Development Director, the City Traffic Engineer representative, a representative of the Police Traffic Division, and the City Engineer. The Traffic Committee reviews resident, community, and City requests pertaining to any traffic-related items. These items are presented with recommendations to the Traffic Committee for discussion and approval, and then are later presented to City Council for final approval.

DISCUSSION:

All the recommended items were presented and discussed at publicly held West Covina Traffic Committee meetings. The items presented were unanimously approved by the Traffic Committee (TC) for City Council consideration and approval. All recommendations meet standard engineering practice and guidelines as found in the California Manual on Uniform Traffic Control Devices (CAMUTCD) and California Vehicle Code (CVC), with engineering judgment. Each item presented was submitted by either a resident, business, community member, or the City to review.

The following recommendations were unanimously approved for installation by the Traffic Committee and are brought before City Council for final approval and consideration:

November 2024 Traffic Committee Meeting
Traffic Review of West Merced Avenue between Orange Avenue and Sunset Avenue:

Request: Request is for a traffic review of the existing mid-block crosswalk located along West Merced Avenue, between South Sunset Avenue and South Trojan Way. The requestor explained that vehicles do not yield to pedestrians when they cross the street.

Approved TC Recommendation:

Install Pedestrian Crossing Ahead Warning Sign (SW24 – 3 (CA)) for north-westbound traffic along Merced Avenue. Install a sign on the north side of Merced Avenue, approximately 150-ft east of Trojan Way.

1. Remove and replace the faded Pedestrian Crossing Ahead Warning Sign (SW24 – 3 (CA)) for south-eastbound traffic, which is located along the south side of Merced Avenue, approximately 300-ft west of Orange Avenue.

2. Remove and replace damaged “Yield to Pedestrian Within Crosswalk” Signs (R1 – 6) that are located at the mid-block crosswalk on Merced Avenue. Replace signs for south-eastbound and north-westbound traffic along Merced Avenue.

3. Remove and replace faded “25” MPH in School Zone Signs (SR4 – 1(CA)) located at the following locations:

Replace sign located on the north side of Merced Avenue, at the intersection with Trojan Way, for north-westbound traffic.

Replace sign located on the south side of Merced Avenue, approximately 100-ft west Orange Avenue, for south-eastbound traffic.

4. Traffic Review of Service Avenue between Lark Ellen Avenue and Valinda Avenue:

Request: Request is for speeding and installation of traffic-calming measures along the segment of Service Avenue between Lark Ellen Avenue and Valinda Avenue.

Approved TC Recommendation:

Install “25” pavement legend adjacent to the existing speed limit sign, located on the south side of Service Avenue approximately 190-feet east of Valinda Avenue, for eastbound traffic.

1. Install “25” pavement legend adjacent to the existing speed limit sign, located on the north side of Service Avenue approximately 150-feet west of Lark Ellen Avenue, for westbound traffic.

2. Install 10-ft side stripes along the north and south sides of Service Avenue, from Valinda Avenue to Lark Ellen Avenue.

3. December 2024 Traffic Committee Meeting
Traffic Review of Walnut Creek Parkway from Azusa Avenue to Citrus Street:

Request: Request is for speeding and installation of traffic-calming measures along the segment of Walnut Creek Parkway from Azusa Avenue to Citrus Street.

Approved TC Recommendation:

Install "25" Pavement Legend Adjacent to the existing 25 MPH Speed Limit signs along Walnut Creek Parkway for eastbound and westbound traffic along the segment of Walnut Creek Parkway from Hollenbeck Avenue to Azusa Avenue.

1. Install Solar Powered Radar Speed Feedback Signage with Speed Limit sign (R2 – 1) mid-block of the segment along Walnut Creek Parkway between Hollenbeck Avenue and Azusa Avenue for eastbound traveling vehicles.

2. Restripe existing dashed yellow centerline to a new double yellow centerline, along Walnut Creek Parkway between Azusa Avenue and Hollenbeck Avenue.

3. Restripe existing dashed yellow centerline to a new double yellow centerline, along Walnut Creek Parkway between Citrus Street and Hollenbeck Avenue.

4. Install "25" Pavement Legend Adjacent to the existing 25 MPH Speed Limit signs along Walnut Creek Parkway, on the eastbound and westbound traffic along the segment of Walnut Creek Parkway from Hollenbeck Avenue to Citrus Street.

5. Install Solar Powered Radar Speed Feedback Signage with Speed Limit sign (R2 – 1) mid-block of the segment along Walnut Creek Parkway between Hollenbeck Avenue and Azusa Avenue for westbound traveling vehicles.

6. Refresh/repaint the existing red curb at the southwest corner of Walnut Creek Parkway and Citrus Street, along Walnut Creek Parkway.

7. Truck Signage Review of E Garvey Avenue between Lark Ellen Avenue and S Azusa Avenue:

Truck Signage Review of E Garvey Avenue between Lark Ellen Avenue and S Azusa Avenue:

Request: The request is to review the traffic conditions along East Garvey Avenue South, between Lark Ellen Avenue and Azusa Avenue. The requestor explained that large trucks constantly travel along this segment of East Garvey Avenue South despite the truck restrictions on this street. It was reported that truck drivers ignore the “No Truck Route” signs that are posted on Lark Ellen Avenue and Azusa Avenue and continue onto Garvey Avenue. Additionally, the City had previously installed channelizers along the curve located at East Garvey Avenue South and South Cherrywood Street as a traffic-calming measure to keep vehicles from leaving the travel way and becoming aware of vehicles' speeds. However, due to the narrow geometry of the curve, trucks turning onto South Cherrywood Street tend to encroach onto the opposite lane and drive over existing channelizers.

This practice has resulted in damage to existing road conditions. The request is also to replace damaged channelizers at a different location and install additional signage to prevent truck drivers from entering this segment of East Garvey Avenue South.

Approved TC Recommendation:

Remove channelizers 1 – 6, 7, 21, and 22 that are located along E Garvey Avenue South and along South Cherrywood Street.

1. Remove and replace channelizer post 10, 12-16, 24 and 25, that were damaged by large trucks along the curve on E Garvey Avenue South and along South Cherrywood Street. Replace for new channelizer post.

2. Install new “TRUCK ROUTE (LEFT)” sign (R14 – 1 (variation)) on the north-east corner of the intersection of Lakes Drive and Glendora Avenue, for northbound traffic. Install signs on the existing signal post.

3. Install new “NO TRUCKS OVER 3 TONS (AHEAD)” sign (R5 – 2 (variation)) on the north-east corner of the intersection of Lakes Drive and Glendora Avenue, for northbound traffic. Install signs on existing signal post, underneath proposed (R14 – 1) sign.

4. Install new “TRUCK ROUTE (RIGHT)” sign (R14 – 1 (variation)) on the north-east corner of the intersection of Lakes Drive and Glendora Avenue, for eastbound traffic. Install signs on existing signal post.

5. Remove and replace “NO TRUCKS OVER 3 TONS” sign (R5 – 2 (variation)) on the south-east corner of the intersection of East Garvey Avenue South and South Lark Ellen Avenue, for eastbound traffic. Install signs on existing signal post.

6. Install new “NO TRUCKS OVER 3 TONS (AHEAD)” sign (R5 – 2 (variation)) on the north-west corner of the intersection of East Garvey Avenue South and South Lark Ellen Avenue, for westbound traffic. Install signs on existing signal post.

7. Install new “THRU TRUCK ROUTE” sign (R14 – 1 (variation)) on the north-east corner of the intersection of East Garvey Avenue South and South Azusa Avenue, for northbound traffic. Install signs on the existing signal post.

8. Install new “NO TRUCKS OVER 3 TONS (LEFT)” sign (R5 – 2 (variation)) on the median located on the south leg of the intersection of East Garvey Avenue South and South Azusa Avenue, for northbound traffic. Install sign on new signpost.

9. Install new “NO TRUCKS OVER 3 TONS (RIGHT)” sign (R5 – 2 (variation)) on the west side of Azusa Avenue, approximately 90-ft north of East Garvey Avenue South, for southbound traffic.

Install signs on the existing light post.

10. Install new “THRU TRUCK ROUTE” sign (R14 – 1 (variation)) on the south-west corner of the intersection of East Garvey Avenue South and South Azusa Avenue, for southbound traffic. Install signs on existing signal post.

11. Remove existing “NO TRUCKS OVER 3 TONS” sign (R5 – 2 (variation)) that is located on the north side of East Garvey Avenue South, approximately 150-ft west of Azusa Avenue, for westbound traffic.

12. Install new “NO TRUCKS OVER 3 TONS” sign (R5 – 2 (variation)) on the north-west corner of the intersection of East Garvey Avenue South and Azusa Avenue, for westbound traffic. Install signs on existing signal post.

13. Remove existing “COMMERCIAL TRUCKS OVER 3 TONS PROHIBITED” sign (R5 – 2 (variation)) on the south-east corner of the intersection of East Garvey Avenue South and Azusa Avenue, for

14. westbound traffic.

Install new “No Trucks Over 3 Tons” sign (R36 (ca)) on the south-east corner of the intersection of East Garvey Avenue South and Azusa Avenue, for eastbound traffic. Install signs on existing signal post.

15. January 2025 Traffic Committee Meeting
Traffic Review of Nelson Street between Azusa Avenue and Fairgrove Avenue:

Request: Request is the installation of traffic-calming measures along the segment of Nelson Street between Azusa Avenue and Fairgrove Avenue.

Approved TC Recommendation:

Install “25” mph sign (R2 – 1) along Nelson Street, for southbound traffic. Install sign on the west side of Nelson Street, approximately 230-ft east of Fairgrove Avenue.

1. Install “25” mph sign (R2 – 1) along Nelson Street, for northbound traffic. Install sign on the east side of Nelson Street, approximately 230-ft west of Fairgrove Avenue.

2. Remove and replace damaged stop sign (R1 – 1) that is located on the south-east corner of the intersection of Nelson Street and Azusa Avenue.

3. Remove and replace faded “keep right” (R4-7) symbol sign that is located on the raised median at the intersection of Nelson Street and Azusa Avenue, for eastbound traffic.

4. LEGAL REVIEW:

The City Attorney's Office has reviewed the staff report.

ENVIRONMENTAL REVIEW:

Staff has reviewed the proposed project and has determined that it is categorically exempt from CEQA pursuant to CEQA Guidelines Section(s) 15302: Replacement or reconstruction; (c) Replacement or reconstruction of existing utility and/or facilities involving negligible or no expansion of capacity.

Prepared by: Jo-Anne Burns, Deputy Community Development Director Fiscal Impact
FISCAL IMPACT:

The proposed improvements will be included either as part of an existing project, or under the Annual Citywide Traffic Signage, Stripping, Pavement Markers Program (Project No. C23016). This program allocates $100,000 annually to enhance vehicle mobility and safety. Minor improvements and/or signage replacement may be done in-house by maintenance staff.

CITY COUNCIL GOALS & OBJECTIVES: A Well-Planned Community Enhance City Image and Effectiveness
AGENDA ITEM NO. 4

It is recommended that the City Council take the following actions:

Accept the work performed by Southwest Pipeline and Trenchless Corp. for the Southside Sewer CIPP Lining Improvements Project (Project No. 24004) with a final cost of $816,644.01;

1. Authorize the City Manager and Assistant City Clerk to execute the Notice of Completion and file the Notice of Completion with the County of Los Angeles Registrar-Recorder; and

2. 3. Authorize the City Manager to release a retention once appropriate.

BACKGROUND:

On July 18, 2023, the City Council awarded a Construction Services Agreement in the amount of $822,817.00 to Southwest Pipeline and Trenchless Corp., for the Southside Sewer CIPP Lining Improvements Project (Project No. 24004). The project construction budget also included a contingency budget of $123,422.55 (15% of awarded amount) for any unforeseen conditions as necessary. The total established construction budget was $946,239.55.

The project included the rehabilitation of approximately 14,850 linear feet of sanitary sewer gravity piping (pipes in 8 inches) along twenty-seven (27) sewer line segments by cured-in-place pipe (CIPP) methods.

The proposed work also included sewer bypassing as necessary to perform rehabilitation work.

DISCUSSION:

All required improvements were constructed in conformance with the approved plans and specifications.

The work was performed within the contractually specified duration and to the City Engineer’s satisfaction. Construction costs totaled $816,644.01, which was within the approved construction budget.

The City retains five percent (5%) of each payment to the contractor as retention to ensure payment to subcontractors and material suppliers before final payment to the contractor. The City Council’s acceptance of the project and the City's recordation of the Notice of Completion trigger timeframes within which subcontractors or material suppliers must file claims for payment if they have not been paid by the contractor. If no claims are filed within 35 days of the filing of the Notice of Completion, the City will release retention and any remaining amount due to the contractor.

LEGAL REVIEW:

The City Attorney's Office has reviewed the staff report.

Prepared by: Robert Ortega, CIP Project Manager
Fiscal Impact
FISCAL IMPACT:

This contract was funded under Project No. C24004, Southside Sewer CIPP Lining (Fund 189, Sewer).

The contract was completed within the approved construction estimate.

Construction Contract $822,817.00
15% Contingency $123,422.55
Total Construction Budget $946,239.55
Actual Expenditures $816,644.01
(Over)/Under Budget $(129,595.54)
Attachments
Attachment No. 1 - Notice of Completion
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
A Well-Planned Community
Enhance City Image and Effectiveness
ATTACHMENT NO. 1

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City Clerk
City of West Covina
1444 W. Garvey Ave. S.

West Covina, CA 91790
EXEMPT FROM RECORDING FEES –
GOVERNMENT CODE §§ 6103, 27383
SPACE ABOVE LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
(California Civil Code § 9204)
NOTICE IS HEREBY GIVEN THAT:

1. Name and Address of Owner. The City of West Covina (“City”), a municipal corporation, whose address is 1444 W. Garvey Ave. S., West Covina, CA 91790, is the fee owner of the public work of improvement described herein and of the property containing said public work of improvement.

2. Description of Public Work of Improvement. The public work of improvement is the project known as:

Southside Sewer CIPP Lining Improvements Project (Project No. 24004).

3. Location of Public Work of Improvement. The public work of improvement is generally located south of Shadow Oak Drive between Shakespeare Drive and West City Limit.

4. Award of Contract; Contractor. On July 18, 2023, the City awarded a contract to construct the public work of improvement to Southwest Pipeline and Trenchless Corp., 22118 Vermont Avenue, Torrance, CA 90502.

5. Date of Completion. The public work of improvement was completed to the satisfaction of the City Engineer on: January 14, 2025.

6. Date of Acceptance. The City Council accepted the public work of improvement on February 18, 2025. _______________________________________
Paulina Morales, City Manager Date
City of West Covina

VERIFICATION
I, the undersigned, say: I am the Assistant City Clerk of the City of West Covina, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on _____________________, at West Covina, California. _______________________________
Lisa Sherrick
Assistant City Clerk
AGENDA ITEM NO. 5

It is recommended that the City Council receive and file the following for the year ended June 30, 2024:

Annual Comprehensive Financial Report (“ACFR”);
Government Auditing Standards Letter;
Audit Communication Letter; and
Community Financial Report.

BACKGROUND:

Annually, the Finance Department prepares and publishes the City’s ACFR following the completion of an independent and certified audit (Attachment No. 1). This document is an extensive report summarizing the financial activities that occurred from July 1, 2023 through June 30, 2024.

The ACFR is prepared in compliance with the Governmental Accounting Standards Board ("GASB") standards. Pursuant to GASB guidelines, the ACFR is divided into three sections: Introductory, Financial, and Statistical. The Introductory section contains a Letter of Transmittal. This letter includes a brief overview of the City, the economic outlook, operational controls and major initiatives.

The Financial section contains the independent auditors’ opinion letter, Management’s Discussion and Analysis (MD&A), and the Basic Financial Statements. The audit firm of Van Lant & Fankhanel LLP has issued an unmodified ("clean") opinion on the financial statements for the year ended June 30, 2024.

This means that their examination, testing and audit procedures allowed them to conclude that the financial statements present fairly the financial position of the City. This is the best opinion the City can receive from its auditors.

The MD&A provides a narrative of how the financial report is presented and key highlights of some of the changes in financial position. The MD&A provides tables showing comparative information from the current and prior year.

The final section of the ACFR is the Statistical section. This section presents data useful in analyzing the City’s financial and operational history for comparative purposes. Some of the statistics tracked include financial trends, revenue capacity, and debt capacity which are useful for evaluating the City’s financial stability. Additional statistics include operating indicators.

DISCUSSION:

Annual Comprehensive Financial Report
The ACFR represents the City of West Covina’s financial position at June 30, 2024 and includes financial statements for all of its component units.

Government Auditing Standards Letter
The Government Auditing Standards Letter (Attachment No. 2) notes any identified deficiencies or weaknesses in internal control over financial reporting that could lead to material misstatements in the City’s financial statements as well as any other compliance findings.

Deficiency in internal control - exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis.

Material weakness - is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented or detected and corrected on a timely basis.

Significant deficiency - is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

The auditors did not identify deficiencies in internal control over financial reporting that they considered to be weaknesses.

Audit Communication Letter
The Audit Communication Letter (Attachment No. 3) provides certain information related to the audit of the City’s financial records, including the following:

Qualitative Aspects of Accounting Practices – The letter notes that City management is responsible for the selection and use of appropriate accounting policies. The letter indicates that there have been no significant changes in accounting policies or their application during the fiscal year. The letter also notes that there were no transactions entered into by the City during Fiscal Year 2023-24 for which there was a lack of authoritative guidance, and that all significant transactions were recorded in the proper accounting periods.

Significant Difficulties Encountered During the Audit – The letter communicates that the auditors encountered no significant difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements – The letter communicates the auditors’ responsibility to note all known and likely misstatements identified during the audit. The auditors noted no such misstatements that were material, either individually or in aggregate, to the financial statements taken as a whole.

Disagreements with Management – The auditors are required to communicate any disagreements with management related to an accounting, reporting or auditing matter, whether resolved or not, in the Audit Communication Letter. No such disagreements arose during the course of the audit for Fiscal Year 2023-24.

Community Financial Report
The Community Financial Report (Attachment No. 4) is an extract of information from the ACFR specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance.

Audit Committee
The ACFR and associated reports were reviewed by the Audit Committee on February 10, 2025.

LEGAL REVIEW:

The City Attorney's Office has reviewed this report.

Prepared by: Maria-Luisa Olea, Assistant Finance Director Fiscal Impact
FISCAL IMPACT:

Financial highlights of the fiscal year are noted in the Financial section of the ACFR and include the following:

City Wide
As of June 30, 2024, the City’s total net position (assets plus deferred outflows of resources less liabilities and less deferred inflows of resources) was $13.7 million.

The City’s total net position increased $7.1 million from the prior year. This is due to various factors. There is an increase in assets of $2.7 million. The increase is mostly due to cash; there was 2.2 million more in investment income when compared to the prior fiscal year. In liabilities and deferred inflows of resources, there was a significant decrease due to OPEB related inflows, which accounts for a $5.2 million decrease in deferred inflows of resources. Additionally, the lease revenue bond liabilities decreased by $5.9 million. Overall, there were positive factors to increase the net position, however the net pension liability and related deferred outflows and inflows of resources was the source of an increase to the City’s liabilities of $8.8 million; the net pension liability increased by $13.3 million, offset with a $3.9 million increase to deferred outflows of resources relating to pension related items and $0.6 million decrease to deferred inflows of resources relating to pension related items.

The City’s total governmental funds reported combined ending fund balances of $150.1 million, an increase of $13.4 million in comparison with the prior fiscal year of $136.7 million. The increase is comprised of changes in fund balance, primarily in the State Gas Tax for $2.5 million, non-major Sewer Maintenance fund for $2.3 million, non-major Measure M fund for $2.0 million, and non-major Measure W fund for $1.2 million. Revenues for the year for the funds slightly due to anticipated increase of tax revenues for gasoline taxes. The fund balances increased for the aforementioned funds due to lower than budgeted expenditures in the funds. The City anticipates to use the funds in the upcoming years. Of the $151.1 million fund balance, $3.5 million, or 2.3%, of this total is non-spendable (not available for new spending). The restricted fund balance categories of $119.7 million, or 79.7%, is spendable for restricted purposes. The assigned fund balance of $8.5 million, or 5.7%, represents amounts that are intended to be used for specific purposes, but are not formally restricted or committed. The unassigned fund balance category of $18.5 million, or 12.3%, represents the City’s fund balance reserves.

General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $18.5 million, while total fund balance was $21.9 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 26.8% of total general fund expenditures, while total fund balance represents 31.7% of that same amount. The non-spendable portion of fund balance in the amount of $3.4 million mainly consists of Land Held for Resale in the amount of $3.0 million.

General Fund, Fund Balance Policy
General Fund, Fund Balance Policy
Per the City’s current Fund Balance Policy, the city shall maintain a minimum unassigned fund balance of at least 17% of the General Fund operating expenditures. As of June 30, 2024, the General Fund unassigned fund balance is $18,484,968, which is in excess of the 17% FY 2024-25 Budgeted Expenditures & Transfers. An update to the Fund Balance Policy and the minimum reserve requirement is included as a separate item for Council consideration.

Attachments
Attachment No. 1 - Annual Comprehensive Financial Report for the Year Ended June 30, 2024 Attachment No. 2 - Government Auditing Standards June 30, 2024 Attachment No. 3 - Audit Communication Letter SAS 114 Communication June 30, 2024 Attachment No. 4 - Community Financial Report 2024
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability 2024

COMPREHENSIVE

FINANCIAL REPORT
www.westcovina.org

CITY OF WEST COVINA

YEAR ENDED
JUNE 30, 2024
ANNUAL
ATTACHMENT NO. 1

CITY OF WEST COVINA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2024

Prepared by
Finance Department
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City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2024

TABLE OF CONTENTS
Page

INTRODUCTORY SECTION
Letter of Transmittal 11
List of City Officials 14
Organizational Chart 15
GFOA Certificate 16

FINANCIAL SECTION
Independent Auditor’s Report 19
Management’s Discussion & Analysis 22
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 35
Statement of Activities 36
Fund Financial Statements:

Balance Sheet - Governmental Funds 38
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 41 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 44 Statement of Net Position - Proprietary Funds 45
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 46 Statement of Cash Flows - Proprietary Funds 47
Statement of Net Position - Fiduciary Funds 48
Statement of Changes in Net Position - Fiduciary Funds 49 Notes to Financial Statements 51
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

General Fund 100
Housing Special Revenue Fund 101
Proposition A Special Revenue Fund 102
Gas Tax Special Revenue Fund 103
ARPA Special Revenue Fund 104
Notes to Required Supplementary Information 105
Schedule of Changes in the Net Pension Liability - Miscellaneous Plan 106 Schedule of Changes in the Net Pension Liability - Safety Plan 108 Schedule of Changes in the Net Pension Liability - PARS EPMC Plan 110 Schedule of Changes in the Net Pension Liability - PARS Exec Plan 112 Schedule of Contributions 114
Schedule of Changes in the Total OPEB Liability and Related Ratios 116 City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2024
TABLE OF CONTENTS - Continued
Page
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

Citywide Debt Service Fund 120
Non-major Governmental Funds: 122
Combining Balance Sheet 126
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 134 Budgetary Comparison Schedules for Non-major Funds:

Drug Enforcement Rebate 141
Air Quality Improvement 142
Proposition C 143
Police Donations 144
Transportation Development Act 145
AB939 146
Various Grants 147
Community Development Block Grant 148
Inmate Welfare 149
Public Safety Augmentation 150
COPS/SLESA 151
Maintenance District #1 152
Maintenance District #2 153
Coastal Sage Shrub 154
Maintenance District #4 155
Maintenance District #6 156
Maintenance District #7 157
Citywide Maintenance District 158
Sewer Maintenance 159
Auto Plaza Improvement District 160
General Plan Update 161
Measure W 162
Charter PEG 163
Art in Public Places 164
West Covina Community Services Foundation 165
Measure R 166
Measure M 167
Measure H 168
Sportsplex 169
City Capital Projects Fund 170
Construction Tax 171
Information Technology 172
Development Impact Fees 173
Park Development 174
Internal Service Funds: 176
Combining Statement of Net Position - Internal Service Funds 177 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 178 Combining Statement of Cash Flows - Internal Service Funds 179 City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2024
TABLE OF CONTENTS - Continued
Page

STATISTICAL SECTION
Net Position by Component 184
Changes in Net Position 186
Changes in Net Position – Governmental Activities 190
Changes in Net Position – Business-type Activities 192
Fund Balances of Governmental Funds 194
Changes in Fund Balances of Governmental Funds 196
Assessed Value and Estimated Actual Value of Taxable Property 198 Direct and Overlapping Property Tax Rates 200
Principal Property Tax Payers 202
Property Tax Levies and Collections 204
Ratios of Outstanding Debt by Type 206
Ratios of General Bonded Debt Outstanding 208
Direct and Overlapping Debt 209
Legal Debt Margin Information 210
Pledged Revenue Coverage 212
Demographic and Economic Statistics 214
Principal Employers 215
Full-time and Part-time City Employees by Function 216
Operating Indicators by Function 218
Capital Asset Statistics by Function 220
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INTRODUCTORY SECTION
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January 29, 2025
Members of the City Council, the City Manager, and the Citizens of the City of West Covina:

Enclosed is the Annual Comprehensive Financial Report (ACFR) of the City of West Covina (City) for the fiscal year ended June 30, 2024. This report consists of management’s representations concerning the finances of the City. Management assumes full responsibility for the completeness and reliability of all the information presented in this report.

To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to both protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The auditors have issued an unmodified opinion on these financial statements. The Independent Auditor’s Report is located at the front of the financial section of this report.

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

Profile of the Government
The City of West Covina is located in the San Gabriel Valley, 20 miles east of downtown Los Angeles and 15 miles north of Orange County. Incorporated as a general law city in 1923, the City's 16 square miles flourished with walnut groves and orange groves for many decades. The post-World War II building boom rapidly transformed the City, which experienced a significant population increase between 1950 and 1960, from less than 5,000 to more than 50,000 citizens.

Subsequent to this rapid population increase, the City has continued to grow at a steady pace to a population of over 109,000. In recent years there has been a slight decline with a current population in excess of 105,000.

From early in its history, the City of West Covina has been noted as a city of beautiful homes.

Through its General Plan, the City Council strives to maintain the City's high-quality residential base and living environment. The City's identity is defined by carefully designed entry point elements, landmark areas, and open space areas.
11 Known as the headquarters of the East San Gabriel Valley, the City strives to maintain a prosperous business and commercial climate. Despite the current challenging financial and economic environment, West Covina derives significant economic stability from the City's three major commercial districts: Plaza West Covina, Eastland Center, and The Lakes. The City’s location and access to major freeways makes West Covina close to many visitor attractions and an ideal business and commercial center. The City has over 32,000 housing units and offers the amenities of a big city location with a high standard of living for its community.

The City provides a full range of services to its citizens, including police, fire and emergency medical; construction and maintenance of streets, traffic signalization and other infrastructure; planning and building safety; and social, recreational and cultural activities and events. The City offers sixteen parks, four community centers, a sports complex, and a county operated library.

Under the Council-Manager form of government, the five City Council members are elected by districts to overlapping four-year terms. The City Council selects a Mayor from one of its members each November to serve a one-year term. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments.

The City is financially accountable for the Successor Agency to the former Redevelopment Agency of the City of West Covina, a financing authority, and a housing authority, which are combined within the City’s financial statements. Additional information regarding all three of these legally separate entities can be found in the notes to the financial statements.

The annual budget serves as a foundation for the City's financial planning and control. The City Council holds public hearings and adopts an annual budget for all funds. The budget appropriations are prepared by fund, function, and department. The City Manager is authorized to transfer budgeted amounts within departments to assure adequate and proper standards of service. Budgetary revisions, including supplemental appropriations which increase total appropriations in individual funds must be approved by the City Council.

Economic Outlook and Major Objectives
In December 2020, the California State Auditor identified several risks in the City’s financial condition, including a major unfunded pension liability and general fund expenditures that have exceeded revenues. Since then, the City has grown its general fund reserves from an unassigned fund balance of $12.6 million in in fiscal year 2019–20 to $18.5 million as of the end of fiscal year 2023–24. Additionally, the city no longer operates with a structural deficit. Instead, the city’s general fund revenue exceeds its operating expenditures.

While progress has been made, in December 2024, the State Auditor retained its high-risk designation for the City, citing that the City’s approach to addressing its reserve level increases its risk for future financial instability – specifically regarding its pension debt. The City must consider establishing and maintaining a general fund reserve target at a level above its current policy to better mitigate this risk.

The City continues to work to secure the financial future while safeguarding the delivery of great public services. This requires stewardship and a willingness to consider all alternatives in service provision. Service levels are directly related to the income from which public expenses are met. The City has attempted to attain fiscal sustainability into the future by finding economies and efficiencies in its operations.
12 Rising costs of materials and services continue to be of grave concern. Through sound financial policies and procedures, the City has attempted to manage rising costs and dwindling revenues efficiently and effectively. This is not to say that significant challenges do not face the City going forward. The infrastructure needs of the City have been long deferred.

Short-term and Long-term Financial Planning
The City has made some progress toward the goal of attaining fiscal sustainability and positioned the City for long-term financial success. Annually, the City adopts a budget covering operating revenues and expenditures, labor usage, capital expenditures, and other sources and uses of funds. For financial planning purposes, the City conducts a comprehensive citywide financial forecast. The latest forecast shows expenditures are increasing at a faster pace than revenues.

Like most California cities, West Covina has several unfunded liabilities. The biggest of these being the cost of employee pensions. Pension obligations and payments for the unfunded accrued liability (UAL) were expected to worsen each fiscal year. This fact prompted the City to issue bonds in July of 2020 to address the UAL and attain more favorable interest rates to address the pension problem. Other Post Employment Benefits (OPEB) liabilities account for the second largest cost. Net change in Net Pension liability was $13.3 million and Net Change in Total OPEB Liability was $3 million as of June 30, 2024. This liability continues to rise and will need to be addressed in the long term.

In addition to pension and OPEB liabitlies, the City is self-insured and exposed to various risks of loss related to its operation which continue to rise. While the City does have excess workers' compensation and excess general liability insurance, the self-insured retention limit is $1 million per occurrence. Overall, there is a $10.7 million deficit in the self-insurance internal service funds as of June 30, 2024. Additionally, claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $24.4 million. This is up nearly four million dollars from the prior year. Continuous risk management improvement will be critical to the financial outcome of these programs.

Awards and Acknowledgements
The preparation of this report could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I would like to express my appreciation to all members of the Department who assisted and contributed to the preparation of this report. Credit must also be given to City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully submitted,
Stephanie Sikkema
Finance Director
13 CITY OF WEST COVINA, CALIFORNIA
1444 W. Garvey Avenue South, West Covina CA 91790

CITY OFFICIALS
JUNE 30, 2024

CITY COUNCIL
Brian Calderón Tabatabai, Mayor
Tony Wu, Mayor Pro Tem
Ollie Cantos, Councilman
Rosario Diaz, Councilwoman
Letty Lopez-Viado, Councilwoman

ELECTED OFFICIALS
Nickolas S. Lewis, City Clerk
Colleen B. Rozatti, City Treasurer

CITY MANAGER
Paulina Morales

EXECUTIVE MANAGEMENT TEAM
Roxanne Lerma, Assistant City Manager
Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Stephanie Sikkema, Finance Director
Vincent Capelle, Fire Chief
Richard Bell, Police Chief
14 City Organizational Chart
Residents of
West Covina
City Clerk
(Elected)
City Council
(Elected)
City Manager
Administration
Comm. & Econ.

Development
City Clerk's
Office
Code
Enforcement Comm. Services
Comm.

Dev.

Planning
Building
Engineering
Finance
HR/Risk Mgmt.

Information
Technology
Fire Police
Public Works
Assistant City
Manager
Assistant City
Manager/PIO
City Attorney
City Treasurer
(Elected)
15 16

FINANCIAL SECTION
17 Page intentionally left blank.
18 Independent Auditor’s Report
The Honorable City Council
City of West Covina, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of West Covina (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of West Covina, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cashflows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, 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 error or fraud.

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

19 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 generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the 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 of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
20 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 accompanying combining statements and budgetary schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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

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

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 29, 2025, 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 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 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.

January 29, 2025
Murrieta, CA
21 MANAGEMENT’S DISCUSSION AND ANALYSIS

The following discussion and analysis of the financial performance of the City of West Covina (the City) provides an overview of the City’s financial activities for the fiscal year ended June 30, 2024. The information presented herein should be considered in conjunction with the transmittal letter and financial statements identified in the accompanying table of contents.

FINANCIAL HIGHLIGHTS
 As of June 30, 2024, the City’s total net position (assets plus deferred outflows of resources less liabilities and less deferred inflows of resources) was $13.7 million.  The City’s total net position increased $7.1 million from the prior year. This is due to various factors. There is an increase in assets of $2.7 million. The increase is mostly due to cash; there was 2.2 million more in investment income when compared to the prior fiscal year. In liabilities and deferred inflows of resources, there was a significant decrease due to OPEB related inflows, which accounts for a $5.2 million decrease in deferred inflows of resources. Additionally, the lease revenue bond liabilities decreased by $5.9 million.

Overall, there were positive factors to increase the net position, however the net pension liability and related deferred outflows and inflows of resources was the source of an increase to the City’s liabilities of $8.8 million; the net pension liability increased by $13.3 million, offset with a $3.9 million increase to deferred outflows of resources relating to pension related items and $0.6 million decrease to deferred inflows of resources relating to pension related items.

 The City’s total governmental funds reported combined ending fund balances of $150.1 million, an increase of $13.4 million in comparison with the prior fiscal year of $136.7 million. The increase is comprised of changes in fund balance, primarily in the State Gas Tax for $2.5 million, non-major Sewer Maintenance fund for $2.3 million, non-major Measure M fund for $2.0 million, and non-major Measure W fund for $1.2 million.

Revenues for the year for the funds slightly due to anticipated increase of tax revenues for gasoline taxes. The fund balances increased for the aforementioned funds due to lower than budgeted expenditures in the funds. The City anticipates to use the funds in the upcoming years. Of the $151.1 million fund balance, $3.5 million, or 2.3%, of this total is non-spendable (not available for new spending). The restricted fund balance categories of $119.7 million, or 79.7%, is spendable for restricted purposes. The assigned fund balance of $8.5 million, or 5.7%, represents amounts that are intended to be used for specific purposes, but are not formally restricted or committed. The unassigned fund balance category of $18.5 million, or 12.3%, represents the City’s fund balance reserves.  The City’s business-type computer service enterprise activity (West Covina Service Group) had an operating gain for fiscal year (FY) 2023-24 of $10,259, compared with a $6,526 operating gain in FY 2022-23. The total net position for the computer service enterprise fund as of June 30, 2024 is $252,092. The net position in the prior year was $241,833.

OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for non-major governmental funds and internal service funds. The basic financial statements include two kinds of statements that present different views of the City:
22  The first two statements are government-wide financial statements that provide both longterm and short-term information about the City’s overall financial status.  The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the governmentwide statements.  The governmental funds statements tell how general government services like public safety were financed in the short-term as well as what remains for future spending.  Proprietary funds statements offer short- and long-term financial information about the activities that are operated like a business, such as the West Covina Service Group, the City’s computer service enterprise.
 Fiduciary fund statements provide information about the fiduciary relationships – like the custodial funds of the City – in which the City acts solely as an agent or trustee for the benefit of others, to whom the resources in question belong.

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

Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s net position and changes in them. The City’s net position is one way to measure the City’s financial health, or financial position. Over time, increases and decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, such as changes in the City’s property tax or sales tax base and the condition of the City’s roads, to assess the overall health of the City.

The Statement of Net Position and the Statement of Activities are divided into two kinds of activities:
 Governmental activities – Most of the City’s basic services such as public safety, streets and roads, economic development and parks and recreation, are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities.
 Business-type activities – The City charges a fee to customers to help it cover all or most of the cost of the services accounted for in these funds. These activities include the City’s computer service enterprise operation.

23 The government-wide financial statements include the West Covina Housing Authority, the West Covina Public Financing Authority, the Parking Authority of the City of West Covina and the West Covina Community Services Foundation (component units), along with the City of West Covina (the primary government). Although legally separate, these component units are important because the City is financially accountable for them.

The activities of the Successor Agency of the former redevelopment agency can be found in the Fiduciary Fund Section of the Financial Statements in the Private Purpose Trust Fund.

Reporting the City’s Most Significant Funds
The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative responsibilities for using certain taxes, grants, or other money (like grants received). The City’s two kinds of funds – governmental and proprietary – use different accounting approaches.  Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into 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 accounting method, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in reconciliations on the pages following the fund financial statements in this report.
 Proprietary funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds are the same as the businesstype activities we report in the government-wide statements but provide more detail and additional information, such as cash flows for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities.

Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in separate fiduciary funds. These activities are not included in the government-wide financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

24 GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of June 30, 2024, net position for the City was a balance of $13.7 million. Compared to the prior year, the net position of the City increased by $7.1 million.

The City’s net position of $13.7 million is made up of three components: Net investment in Capital Assets, Restricted Net Position and Unrestricted Net Position. The largest portion of the City’s net position, $149.2 million, reflects its net investment in capital assets (e.g., infrastructure, land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to the community. As such, these assets are not available for spending. In addition, $113.7 million of the City’s net position represents resources that are subject to external restrictions on how they may be used.

The remaining balance of unrestricted net position is a deficit of $249.1 million due to the unfunded pension liability (GASB 68) for which the City has issued 2020 Lease Revenue Bonds; the balance of the bonds is $192.3 million.

The table below reflects the Statement of Net Position for the fiscal year ended June 30, 2024, with the comparative data for the fiscal year ended June 30, 2023:

2024 2023 2024 2023 2024 2023
Assets:

Current and other assets 194,364,322 $ 186,439,041 $ 255,710 $ $ 194, 291,899 $ 186,730,940 620,032 $ Capital assets 188,412,980 193,577,149 - - 188, 193,577,149 412,980 Total assets 382,777,302 380,016,190 255,710 383, 291,899 380,308,089 033,012 Deferred Outflows of Resources:

Pension related 41,675,192 37,822,672 - - 41, 37,822,672 675,192 OPEB related 8,003,872 8, - 878,853 - 8, 8,878,853 003,872 46,701,525 49,679,064 - - 49, 46,701,525 679,064
Liabilities:

Long-term debt outstanding 382,039,274 368,378,854 1,236 17,268 382, 368,396,122 040,510 Other liabilities 17,960,423 26,715,769 2,382 32,798 17, 26,748,567 962,805 Total liabilities 399,999,697 395,094,623 3,618 50,066 400, 395,144,689 003,315 Deferred Inflows of Resources:

Pension related 141,011 - 785,967 - 785,967 141,011
OPEB related 12,406,521 17,602,036 - - 12, 17,602,036 406,521 Lease Related 6,412,504 6, 834,555 - 6, - 412,504 6,834,555 18,960,036 25,222,558 - 18, - 960,036 25,222,558
Net Position:

Net investment in
capital assets 149,162,351 152,367,256 - 149, - 162,351 152,367,256 Restricted 113,696,248 109,315,672 - 113, - 696,248 109,315,672 Unrestricted (249,361,966) (255,282,394) 252,092 (249, 241,833 109,874) (255,040,561) Total net position $ 13,496,633 $ 6,400,534 $ 252,092 $ 241,833 $ 13,748,725 $ 6,642,367 Statement of Net Position
Table 1
Governmental Activities Business-Type Activities Total
25 Changes in Net Position
The City’s total revenues of $132.9 million for governmental activities are $4.2 million more than the expenses of $128.7 million. The majority of the increase is due to a $3.0 million increase in sales tax and $2.2 million increase in investment income.

A summary of the government-wide statement of activities for the year ended June 30, 2024, with the comparative data for the fiscal year ended June 30, 2023, is as follows:

Governmental Activities
Some of the more significant changes in the revenues and expenses of the City’s governmental activities presented above are as follows:
 Charges for services decreased by $2.3 million, primarily due to building permits. The prior year had higher than anticipated construction activity.  Operating contributions and grants increased by $3.2 million, primarily due to $2.9 million of American Rescue Plan Act (ARPA) funds expended. The City received a total of $19.6 million in ARPA in Fiscal Years 2020-21 and 2021-22. A total of $9.2 million was expended and recognized as revenue in FY 2021-22, $1.9 million was expended and recognized as revenue in FY 2022-23, and in FY 2023-24 $4.8 million was spent on eligible expenses.  Property taxes, the City’s largest revenue source, increased $1.2 million, or 3.6%, primarily due to an increase in the assessed valuation on all classes of property, driven by local real estate market values.
2024 2023 2024 2023 2024 2023
Revenues
Program revenues:

Charges for services $ 17,389,515 $ 19,678,784 $ 692,994 $ 686,731 $ 18,082,509 $ 20,365,515 Operating contributions and grants 22,201,169 18,983,157 - 22,201,169 - 18,983,157 Capital contributions and grants 15,149,924 15,354,938 - 15,149,924 - 15,354,938 General revenues:

Property taxes 35,055,298 33,822,147 - 35,055,298 - 33,822,147 Sales taxes 26,575,421 23,526,119 - 26,575,421 - 23,526,119 Other taxes 9,884,121 10,053,724 - 9,884,121 - 10,053,724 Other general revenues 6,685,708 4,007,614 - 6,685,708 30 4,007,644 Total revenues 132,941,156 125,426,483 692,994 686,761 133,634,150 126,113,244 Expenses
General government 20,662,676 19,222,882 - 20,662,676 - 19,222,882 Public safety 65,336,608 66,098,443 - 65,336,608 - 66,098,443 Public works 20,428,579 24,203,764 - 20,428,579 - 24,203,764 Community services 11,905,416 10,247,116 - 11,905,416 - 10,247,116 Community development 1,716,136 1,446,667 - 1,716,136 - 1,446,667 Interest expense 8,655,994 8,792,569 - 8,655,994 - 8,792,569 Computer service - 682,735 - 680,235 682,735 680,235
Total expenses 128,705,409 130,011,441 682,735 680,235 129,388,144 130,691,676 Increase (decrease) in net position 4,235,747 (4,584,958) 10,259 6,526 4,246,006 (4,578,432) Beginning net position 6,400,534 10,985,492 241,833 235,307 6,642,367 11,220,799 Restatement of net position 2,860,352 - 2,860,352 - -
Ending net position $ 13,496,633 $ 6,400,534 $ 252,092 $ 241,833 $ 13,748,725 $ 6,642,367 Governmental Activities Business-Type Activities Total
Changes in Net Position
Table 2
26  Sales tax, the City’s second largest revenue source, increased $3.0 million, or 13.0%, primarily due to gains in the autos and transportation sector.  Other general revenues increased by $2.7 million, primarily due to increased realized interest income and a positive fair market value adjustment.  There was an overall decrease in expenses of $1.3 million. This is primarily due to an decrease in Public Works contracts.

Revenues by Source – Governmental Activities
The most significant revenues of the governmental activities are property taxes ($35.0 million), sales tax ($26.6 million) and other taxes ($9.9 million). Program revenues are $54.7 million of the total revenues of the governmental activities, which include charges for services ($17.4 million), operating contributions and grants ($22.2 million), and capital grants and contributions ($15.1 million).

Property taxes

26.4%
Sales taxes

20.0% Other taxes
Other general 7.4%
revenue

5.0%
Charges for
services

13.1%
Operating grants
and contributions

16.7%
Capital grants and
contributions

11.4%
27 Expenses by Function – Governmental Activities
The City’s expenses cover a range of services whose expenses were as follows: Public safety ($65.3 million), public works ($20.4 million), community services ($11.9 million), general government ($20.7 million), interest expense ($8.7 million) and community development ($1.7 million). These expenses include pension related items, claims and capital outlays which are now reflected in the City-wide assets and liabilities.

General
government

16.1%
Public safety

50.8%
Public works

15.9%
Community
services

9.3%
Community
development

1.3%
Interest expense

6.7%
28 Business-Type Activities
The business-type activity is the West Covina Service Group, which provides dispatch and records management software and services to other police departments.

The business-type activity’s expenses increased by $2,500, or 0.4%, from the prior fiscal year.

Charges for services and other revenues increased by $6,233, or 0.9%, in FY 2023-24. The changes from the prior year resulted in a slight increase of net position of $10,259. The West Covina Service Group has experienced less sales over the years.

$-
$0.5
$1.0
$1.5
$2.0
Revenues
Program Expenses
29 MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to demonstrate compliance with finance-related legal requirements.

Major Governmental Funds
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $18.5 million, while total fund balance was $21.9 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 26.8% of total general fund expenditures, while total fund balance represents

31.7% of that same amount. The non-spendable portion of fund balance in the amount of $3.4 million mainly consists of Land Held for Resale in the amount of $3.0 million.

Total revenues, exclusive of fund transfers in, increased $4.5 million while total operating expenditures, exclusive of fund transfers out, increased $2.2 million. The reasons for significant changes in the revenues and expenditures of the City’s General Fund from the prior year are as follows:
 Total taxes were up $3.9 million (5.8%) from the prior year. Sales taxes increased by $2.9 million (12.4%) due to increased property assessments compared to the prior year.  Investment income was up $2.0 million (3.7%) from the prior year. The fair market value of investments valued has increased for the fiscal year.

The West Covina Housing Authority Fund provides for low- and moderate-income activities that were previously provided by the redevelopment agency. The Authority has outstanding loans receivable of $11.9 million. The fund holds $19.9 million in restricted fund balance.

The State Gas Tax Fund accounts for tax collected on fuel to fund maintenance and repair of the States’ highways and roads. The fund finished the fiscal year with a total fund balance of $8.3 million. There were $1.9 million less expenses than revenues for the fund, additionally there was a $0.6 million transfer in from the General Fund.

The American Rescue Plan Act (ARPA) Fund accounts for federal monies received for COVID19 related expenses. The City has received $19.6 million in funding and spent $15.8 million as of June 30, 2024. The fund has $3.8 million in unearned revenue. 30 GENERAL FUND BUDGET
There were numerous budget amendments throughout the fiscal year to adjust budget to actuals, but the net effect to the General Fund budget was $0.2 million. Taxes in total exceeded the original budget by $5,139,300, primarily from sales tax received during the fiscal year. The City budgeted conservatively for these sources of revenue as it may fluctuate from year to year. The property tax revenue budget was adjusted to reflect the higher property tax due to higher assessed valuations. Budgeted expenditures were increased $4.1 million primarily due to public safety salaries and benefits and public works’ contract services.

CAPITAL ASSETS
The major additions to capital assets during the year ended June 30, 2024 were as follows:
 Construction in progress had a net decrease of $20.3 million. There were several completed projected including:
 Azusa Sewer lift station upgrades ($4.1 million)
 Energy Efficient Project ($7.8 million)
 Residential Street Rehabilitation ($2.6 million)
 Fire Station Pre-Alerting System ($183,000)
 Senior Center Sliding Doors ($100,000)
 Fire Building Improvements ($1.2 million)
 Safety Portable & Mobile Rad ($217,000)
 Fire Station Repairs ($314,000)
 Pumper Fire Trucks (Two) ($2.2 million)
 Ladder Truck (Quint) ($1.8 million)
 New Ambulances ($1.7 million)
 Citrus Ave Rehab ($103,000)
 City Hall Entry Signs ($122,000)
 Workman Ave Rehab at Citrus ($73,000)
 Park Sports Field Lighting ($714,000)
 Self-contained Breathing Apparatus ($977,000)
Additional information on the City’s capital assets can be found in Note 6 of this report.

2024 2023 2024 2023 2024 2023
Land $ 48,356,495 $ 48,356,495 $ - $ 48,356,495 - $ $ 48,356,495 Buildings and improvements 63,104,441 75,679,925 - - 75,679,925 63,104,441 Equipment and vehicles 14,964,313 8,930,667 - - 14,964,313 8,930,667 Infrastructure 33,255,375 36,701,275 - - 33,255,375 36,701,275 Rights of way 14,376,498 14,376,498 - - 14,376,498 14,376,498 Construction in progress 1,780,374 22,107,773 - - 1,780,374 22,107,773 Total 188,412,980 $ 193,577,149 $ - $ - $ 188,412,980 $ 193,577,149 $ Governmental Activities Business-Type Activities Total
31 LONG-TERM DEBT
At the end of the current fiscal year, the City had debt outstanding of $382.0 million. Of this amount, $225.8 million represents outstanding bonds and $144.1 million represents other debt such as compensated absences payable, claims and judgments payable, and the net pension and OPEB liabilities. All of the outstanding bonds are lease revenue bonds secured by leases from the General Fund.

Additional information on the City’s long-term debt can be found in Note 7 of this report.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, at City of West Covina, 1444 West Garvey Avenue South, West Covina, California 91790.
2024 2023 2024 2023 2024 2023
Lease Revenue Bonds $ 225,782,088 $ 231,690,193 $ - $ 225,782,088 - $ $ 231,690,193 Notes Payable 6,368,089 6,947,007 - 6,368,089 - 6,947,007 Loans Payable 5,783,541 6,044,700 - 5,783,541 - 6,044,700 Compensated Absences 4,448,714 4,379,497 1,236 17,268 4,449,950 4,396,765 Net Pension Liability 57,913,001 44,600,464 - 57,913,001 - 44,600,464 Total OPEB Liability 57,255,537 54,205,612 - 57,255,537 - 54,205,612 Claims Payable 24,488,304 20,511,381 - 24,488,304 - 20,511,381 Total $ 382,039,274 $ 368,378,854 $ 1,236 $ 17,268 $ 382,040,510 $ 368,396,122 Governmental Activities Business-type Activities Total
Outstanding Bonds
32 BASIC FINANCIAL STATEMENTS
33 Page intentionally left blank.
34 City of West Covina
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments 128,729,271 $ - $ $ 128,729,271
Cash and Investments with Fiscal Agents 19,455,412 - 19, 455,412 Receivables:

Accounts 1,507,248 264,705 1,771,953
Taxes 6,941,815 6, - 941,815
Interest 4,376,495 4, - 376,495
Notes and Loans 14,818,265 14, - 818,265
Other 2,048,391 2, - 048,391
Due from Other Agencies 3,190,163 3, - 190,163
Leases 6,412,504 6, - 412,504
Internal Balances 205,022 (205,022) -
Prepaid Items 514,381 196,027 710,408
Inventory 61,141 - 61,141
Advances to Successor Agency - - -
Land Held for Resale 3,007,802 3, - 007,802
Restricted Cash and Investments 3,096,412 3, - 096,412
Net Pension Asset - - -
Capital Assets, Not Being Depreciated 64,513,367 64, - 513,367 Capital Assets, Net of Accumulated Deprecation 123,899,613 - 123,899,613 Total Assets 382,777,302 255,710 383,033,012

DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 8,003,872 8, - 003,872
Pension Related Items 41,675,192 41, - 675,192
Total Deferred Outflows of Resources 49,679,064 49, - 679,064

LIABILITIES
Accounts Payable 6,768,174 2,070 6,770,244
Other Accrued Liabilities 2,478,702 312 2,479,014
Interest Payable 3,049,967 3, - 049,967
Deposits Payable 1,853,381 1, - 853,381
Unearned Revenue 3,810,199 3, - 810,199
Noncurrent Liabilities:

Due Within One Year 20,450,943 1,236 20,452,179
Due in More Than One Year:

Total OPEB Liability 55,131,239 55, - 131,239
Net Pension Liability 57,913,001 57, - 913,001
Notes, Loans, and Bonds Payable 248,544,091 - 248,544,091 Total Liabilities 399,999,697 3,618 400,003,315

DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 12,406,521 12, - 406,521
Pension Related Items 141,011 - 141,011
Lease Related 6,412,504 6, - 412,504
Total Deferred Inflows of Resources 18,960,036 18, - 960,036

NET POSITION
Net Investment in Capital Assets 149,162,351 - 149,162,351 Restricted for:

Affordable Housing 23,168,615 23, - 168,615
Debt Service 20,118,960 20, - 118,960
Pension Trust 16,069 - 16,069
Community Services 4,887,456 4, - 887,456
Public Safety 8,981,467 8, - 981,467
Public Works 56,523,681 56, - 523,681
Unrestricted (249,361,966) 252,092 (249,109,874)
Total Net Position $ 13,496,633 $ 252,092 $ 13,748,725
The accompanying notes are an integral part of this statement. 35 City of West Covina
Statement of Activities
Year Ended June 30, 2024
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:

Governmental Activities:

General Government 20,662,676 $ 777,588 $ 4,926,429 $ 2,752 $ Public Safety 65,336,608 6,677,549 5,472,213 134,229
Public Works 20,428,578 8,384,949 8,072,257 8,473,568
Community Services 11,905,417 1,549,429 3,730,270 6,252,503 Community Development 1,716,136 - 286,872
Interest on Long-Term Debt 8,655,994 - - -
Total Governmental Activities 128,705,409 17,389,515 22,201,169 15,149,924 Business-type Activities:

Computer Service 682,735 692,994 - -
Total Business-type Activities 682,735 692,994 - -
Total Primary Government 129,388,144 $ 18,082,509 $ 22,201,169 $ 15,149,924 $ General Revenues:

Taxes:

Property Taxes
Sales Taxes
Franchise Taxes
Transient Occupancy Taxes
Other Taxes
Other Revenues
Investment Income
Total General Revenues and Transfers
Change in Net Position
Net Position, Beginning, as Previously Reported
Restatement for Correction of an Error
Net Position, Beginning, as Restated
Net Position - Ending
Program Revenues
The accompanying notes are an integral part of this statement. 36 Governmental Business-type
Activities Activities Total
$ - (14,955,907) $ (14,955,907) $
- (53,052,617) (53,052,617)
- 4,502,196 4,502,196
- (373,215) (373,215)
(1,429,264) (1,429,264) -
(8,655,994) (8,655,994) -
(73,964,801) (73,964,801) -
- 10,259 10,259
- 10,259 10,259
(73,964,801) 10,259 (73,954,542)
35,055,298 35,055,298 -
26,575,421 26,575,421 -
5,052,041 5,052,041 -
1,728,098 1,728,098 -
3,103,982 3,103,982 -
2,431,663 2,431,663 -
4,254,045 4,254,045 -
78,200,548 78,200,548 -
4,235,747 10,259 4,246,006
6,400,534 241,833 6,642,367
2,860,352 2,860,352 -
9,260,886 241,833 9,502,719
$ 13,496,633 $ 252,092 $ 13,748,725
Net (Expense) Revenue andChanges in Net Position
37 City of West Covina
Balance Sheet
Governmental Funds
June 30, 2024
West Covina State
Housing Proposition Gas
General Authority A Tax
ASSETS
Cash and Investments $ 14,597,848 $ 7,981,393 $ 962,049 $ 7,549,954 Cash and Investments with Fiscal Agent - - - -
Restricted Cash 1,867,261 6,834 - -
Receivables, net:

Accounts 1,449,912 - - -
Taxes 5,758,936 - 255,446 -
Interest 1,003,996 3,289,910 - -
Notes and Loans 11,968,838 - - -
Other 1,406,262 - 494,278 -
Due from Other Agencies 77,898 - - -
Leases 6,412,504 - - -
Due from Other Funds 266,113 - - -
Avances to Other Funds 115,159 - - -
Prepaid Items 233,128 5,750 - -
Land Held for Resale 3,007,802 - - -
Total Assets $ 36,196,819 $ 23,252,725 $ 962,049 $ 8,299,678

LIABILITIES
Accounts Payable $ 3,038,761 $ 70,149 $ 319,102 - $
Accrued Liabilities 2,106,968 8,211 - 21,555
Deposits Payable 1,849,381 - - -
Unearned Revenue 15,407 - - -
Due to Other Funds - - - -
Advances to Other Funds - - - -
Total Liabilities 7,010,517 78,360 340,657 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 914,861 3,275,231 - -
Lease Related 6,412,504 - - -
Total Deferred Inflows of Resources 7,327,365 3,275,231 - -

FUND BALANCE (DEFICITS)
Nonspendable 3,356,089 5,750 - -
Restricted 17,880 19,893,384 962,049 7,959,021
Assigned - - - -
Unassigned 18,484,968 - - -
Total Fund Balances (Deficits) 21,858,937 19,899,134 962,049 7,959,021 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 36,196,819 $ 23,252,725 $ 962,049 $ 8,299,678 Special Revenue
The accompanying notes are an integral part of this statement. 38 Special
Revenue Debt Service
Non-major
Governmental
ARPA Citywide Debt Funds Total
$ 3,659,435 $ 583,659 $ 78,526,362 $ 113,860,700
19,455,412 - 19,455,412 -
- - 8,614 1,882,709
- - 57,336 1,507,248
- 927,433 - 6,941,815
- 82,589 4,376,495 -
- 2,849,427 - 14,818,265
- 147,851 - 2,048,391
- 1,806,259 - 1,884,157
- - 6,412,504 -
- - 266,113 -
- - 115,159 -
173,602 101,901 - 514,381
- - 3,007,802 -
$ 3,833,037 $ 20,121,660 $ 84,425,183 $ 177,091,151
$ 38,245 $ 2,700 $ 2,640,233 $ 6,109,190
- 340,916 - 2,477,650
- - 4,000 1,853,381
3,794,792 - 3,810,199 -
- - 61,091 61,091
- 115,159 - 115,159
3,833,037 2,700 3,161,399 14,426,670
- 1,928,035 - 6,118,127
- - 6,412,504 -
- 1,928,035 - 12,530,631
- 101,901 - 3,463,740
20,118,960 - 70,770,145 119,721,439
- 8,487,928 - 8,487,928
- - (24,225) 18,460,743
20,118,960 79,335,749 150,133,850 -
$ 3,833,037 $ 20,121,660 $ 84,425,183 $ 177,091,151
39 Page intentionally left blank.
40 Fund balances of governmental funds $ 150,133,850
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.

Capital Assets 475,845,607
Accumulated Depreciation (288,214,615) 187,630,992
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 6,118,127
Interest Payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liabiltiy in the funds. (3,049,967)
Long term liabilities are not due and payable in the current period and are not reported in the funds.

Bonds Payable (including premiums) (225,782,088)
Loans Payable (5,783,541)
Compensated Absences (4,441,022)
Notes Payable (6,368,089)
Net Pension Liability (57,913,001)
Total OPEB Liability (57,255,537)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds.

Deferred Outflows Related to Pensions 41,675,192
Deferred Inflows Related to Pensions (141,011)
Deferred Outflows Related to OPEB 8,003,872
Deferred Inflows Related to OPEB (12,406,521)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.

The assets and liabilities of the internal service funds must be added to the statement of net position. (6,924,623)
Net position of governmental activities $ 13,496,633
City of West Covina
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of this statement. 41 West Covina State
Housing Proposition Gas
General Authority A Tax

REVENUES
Taxes $ 71,323,605 $ 3,088,020 - $ $ 2,828,524
Special Assessments - - - -
Licenses and Permits 2,279,923 - - -
Fines and Forfeitures 911,167 - - -
Investment Income 2,599,872 279,888 53,766 203,894
Rental Income 1,044,318 - - -
Revenue from Other Agencies 1,253,674 - 2,954,749 -
Charges for Services 8,452,607 - - -
Other Revenues 2,361,173 176,002 - -
Total Revenues 90,226,339 455,890 3,141,786 5,987,167

EXPENDITURES
Current:

General Government 4,819,722 - - 3,458
Public Safety 54,504,622 31,824 - -
Public Works 5,582,220 10,817 4,041,451 -
Community Services 3,441,745 3,046,649 2,617
Community Development 662,727 646,795 - 224
Debt Service:

Principal - - - -
Interest - - - -
Total Expenditures 69,011,036 689,436 3,046,649 4,047,750 Excess (Deficiency) of Revenues
over Expenditures 21,215,303 (233,546) 95,137 1,939,417

OTHER FINANCING SOURCES (USES)
Transfer In - - 567,200 -
Transfer Out (20,385,108) - - -
Total Other Financing Sources (Uses) (20,385,108) - 567,200 - Net Change in Fund Balances 830,195 (233,546) 95,137 2,506,617 Fund Balances, Beginning, as Previously Reported 21,028,742 23,191,204 866,912 5,452,404 Restatement for Correction of an Error (3,058,524) - - - Fund Balances, Beginning, as Restated 21,028,742 20,132,680 866,912 5,452,404 Fund Balances, Ending $ 21,858,937 $ 19,899,134 $ 962,049 $ 7,959,021 City of West Covina
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2024
Special Revenue
The accompanying notes are an integral part of this statement. 42 Special
Revenue Debt Service
Non-major
Governmental
ARPA Citywide Debt Funds Total
$ - $ 10, - $ 128,734 $ 87,368,883
- 7,205,542 - 7,205,542
- - 2,279,923 -
- - 911,167 -
1,049,592 - 1,885,160 6,072,172
- 126,936 - 1,171,254
4,642,536 1,341,441 4,425,997 14,618,397
- 177,036 - 8,629,643
- 1,252,996 - 3,790,171
4,642,536 2,391,033 25,202,401 132,047,152
4,392,536 12,500 306,297 9,534,513
- 3,695,924 - 58,232,370
- 9,071,998 - 18,706,486
3,765,576 250,000 10,506,587
- 406,390 - 1,716,136
6,695,077 - 6,695,077 -
8,751,132 - 8,751,132 -
4,642,536 15,458,709 17,246,185 114,142,301
(13,067,676) - 7,956,216 17,904,851
13,131,897 - 2,373,211 16,072,308
- - (20,385,108) -
13,131,897 - 2,373,211 (4,312,800)
- 64,221 10,329,427 13,592,051
20,054,739 - 66,101,633 136,695,634
- 2,904,689 - (153,835)
20,054,739 - 69,006,322 136,541,799
$ 20, - $ 118,960 $ 79,335,749 $ 150,133,850
43 Net change in fund balances-total governmental funds $ 13,592,051 Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense.

Capital Expenditures 5,484,196
Depreciation Expense (10,736,782)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 894,004 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds.

Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows:

Principal Paid on Notes Payable 578,918
Principal Paid on Bonds Payable 5,855,000
Principal Paid on Loans Payable 261,159
Amortization of Premium on Lease Revenue Bonds 53,105
Accrued interest on bonds is not recorded in the governmental funds. This is the net change in accrued interest for the period. 42,033 Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not reported as governmental fund expenditures:

Net Change in Employee Leave Benefits (68,689)
Net Change in Net Pension Liability (13,312,537)
Net Change in Total OPEB Liability (3,049,925)
Net Change in Deferred Outflows Pension Related Amounts 3,852,520 Net Change in Deferred Inflows Pension Related Amounts 644,956 Net Change in Deferred Outflows OPEB Related Amounts (874,981) Net Change in Deferred Inflows OPEB Related Amounts 5,195,515 Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.

The net revenue (expense) of the internal service funds is reported with governmental activities. (4,174,796)
Change in net position of governmental activities $ 4,235,747 City of West Covina
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 44 City of West Covina
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
ASSETS
Current Assets:

Cash and Investments $ 14,868,571 - $
Restricted Cash and Investments - 1,213,703
Accounts Receivable, Net - 264,705
Due from Other Agencies - 1,306,006
Prepaids - 196,027
Inventories 61,141 -
Total Current Assets 460,732 17,449,421
Noncurrent Assets:

Capital Assets, Net of Accumulated Depreciation - 781,988 Total Noncurrent Assets 781,988 -
Total Assets 18,231,409 460,732

LIABILITIES
Current Liabilities:

Accounts Payable 658,984 2,070
Other Accrued Liabilities 312 1,052
Due to Other Funds 205,022 -
Current Portion of Long-Term Liabilities:

Compensated Absences 1,236 7,692
Claims Payable 7,578,180 -
Total Current Liabilities 208,640 8,245,908
Noncurrent Liabilities:

Claims Payable 16,910,124 -
Total Noncurrent Liabilities - 16,910,124
Total Liabilities 25,156,032 208,640

NET POSITION
Net Investment in Capital Assets - 781,988
Unrestricted (7,706,611) 252,092
Total Net Position 252,092 $ (6,924,623) $
The accompanying notes are an integral part of this statement. 45 City of West Covina
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2024
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds

OPERATING REVENUES
Charges for Services $ 692,994 $ 6,528,061
Other Revenues 1,699,449 -
Total Operating Revenue 692,994 8,227,510

OPERATING EXPENSES
Personnel Services 19,888 170,065
Cost of Sales, Services, and Operations 662,847 1,491,038 Depreciation 226,917 -
Insurance and Claims Paid 14,900,409 -
Total Operating Expenses 682,735 16,788,429
Operating Income (Loss) 10,259 (8,560,919)

NONOPERATING REVENUES (EXPENSES)
Investment Income 73,323 -
Gain/ (Loss) on Disposal of Capital Assets - -
Total Nonoperating Revenues (Expenses) 73,323 -
Income Before Contributions and Transfers 10,259 (8,487,596) Transfers In 4,312,800 -
Transfers Out - -
Change in Net Position 10,259 (4,174,796)
Total Net Position, Beginning 241,833 (2,749,827)
Total Net Position, Ending $ 252,092 $ (6,924,623)
The accompanying notes are an integral part of this statement. 46 City of West Covina
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
Cash Flows from Operating Activities
Cash Received from Customers 1,040,368 $ - $
Cash Received from User Departments - 6,943,259
Cash Paid to Suppliers for Goods and Services (794,258) (10,662,471) Cash Paid to Employees for Services (37,592) (168,883)
Net Cash from Operating Activities 208,518 (3,888,095)
Cash Flows from Noncapital Financing Activities
Cash Received (Paid to) Other Funds (208,518) 4,312,800 Net Cash from Noncapital Financing Activities (208,518) 4,312,800 Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (315,334) - Net Cash from Capital and Related Financing Activities (315,334) - Cash Flows from Investing Activities
Interest on Investments - 73,323
Net Cash from Investing Activities - 73,323
Net Increase (Decrease) in Cash and Cash Equivalents 182,694 Cash and Cash Equivalents, Beginning of Year - 15,899,580 Cash and Cash Equivalents, End of Year $ 16,082,274 - $ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating income (loss) $ (8,560,919) 10,259 $
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation - 226,917
Other Revenues - -
(Increase) Decrease in Accounts Receivable 347,374 (1,284,251) (Increase) Decrease in Due from Other Agencies - -
(Increase) Decrease in Inventory and Prepaid Items (102,667) 1,852,100 Increase (Decrease) in Accounts Payable (28,744) (100,047) Increase (Decrease) in Accrued Liabilities (1,672) 654
Increase (Decrease) in Compensated Absences (16,032) 528 Increase (Decrease) in Claims and Judgments - 3,976,923 Net Cash Provided (Used) by Operating Activities 208,518 $ (3,888,095) $ The accompanying notes are an integral part of this statement. 47 Successor
Agency
Private-purpose
Trust Fund
ASSETS
Cash and Investments 1,822,229 $
Cash and Investments with Fiscal Agent 1,575,022
Restricted Cash and Investments 6,514,513
Receivables, Net:

Interest 18,698
Assessments 12,500
Due from City of West Covina 6,368,089
Land Held for Resale 54,279
Total Assets 16,365,330

LIABILITIES
Accounts Payable 1,629
Accrued Liabilities 1,222
Interest Payable 45,837
Due to Other Governments 83,716
Long-term Liabilities:

Due to County Auditor Controller 6,368,089
Due within One Year 1,304,975
Due in More than One Year 91,596,421
Total Liabilities 99,401,889

NET POSITION
Held in Trust for:

Successor Agency (83,036,559)
$ (83,036,559)
City of West Covina
Statement of Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of this statement. 48 Successor
Agency
Private-purpose
Trust Fund

ADDITIONS
Contributions:

Taxes and assessments collected for others 2,082,313 $
Investment Earnings:

Interest Income 111,608
Rental Income 50,000
Total Additions 2,243,921

DEDUCTIONS
Program Administration 1,673,796
Administrative Costs 2,499
Interest and Fiscal Charges 131,622
Total Deductions 1,807,917
Change in Net Position 436,004
Net Position, Beginning of Year (83,472,563)
Net Position, End of Year (83,036,559 $ )
City of West Covina
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2024
The accompanying notes are an integral part of this statement. 49 Page intentionally left blank.
50 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of West Covina, California (the City) have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s significant accounting policies are described below.

A) Financial Reporting Entity
The City was incorporated on February 23, 1923 under the general laws of the State of California. The accompanying financial statements present the City and its component units; entities for which the City is considered to be financially accountable. 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 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 for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.

Because each component unit meets the above-mentioned criteria, included within the financial reporting entity of the City are the City of West Covina Housing Authority, the West Covina Public Financing Authority, the Parking Authority of the City of West Covina, and the West Covina Community Services Foundation, Inc.

A brief description of each component unit follows:

West Covina Housing Authority
The West Covina Housing Authority (the Housing Authority) was formed on January 17, 2012 and is responsible for the administration of providing affordable housing in the City. The Housing Authority is administered by a Board which consists of members of the City Council, and management of the City has operational responsibility for the Housing Authority. The transactions of the Housing Authority are reported as a special revenue fund and the Housing Authority is reported as a blended component unit of the City.

West Covina Public Financing Authority
The West Covina Public Financing Authority (the Authority) was created by a joint powers agreement between the City and the Community Development Commission of the City on June 1, 1990. The purpose of the Authority is to provide, through the issuance of debt, financing necessary for various capital improvements.

The Authority is administered by the Board who are the members of the City Council. The Authority's sole source of income is installment sale, loan and lease payments received from the City and former Community Development Commission (the Commission) which are used to meet the debt service requirements on debt issues. The Authority is blended into the debt service fund of the City.

The Parking Authority of the City of West Covina
The Parking Authority of the City of West Covina (the Parking Authority) was formed under the provision of the government code of the State of California for the purpose of financing and constructing parking facilities for lease to the City. The City Council acts as the governing body of the Parking Authority and is able to impose its will on the Parking Authority. It is a component unit of the City, and the financial statements of the Parking Authority are included within the financial statements of the City using the blended method. The Parking Authority has been inactive since 1999.
51 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The West Covina Community Services Foundation, Inc.

The West Covina Community Services Foundation, Inc. (the Foundation) was established on July 26, 2005 as a nonprofit public benefit corporation. It was organized and operates exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. The Foundation is administered by the Board of Directors who are the members of the City Council. The Foundation is blended into the special revenue funds of the City.

Since the City Council serves as the governing board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are reported with the interfund data of the primary government. Except for the Housing Authority, these component units do not issue component unit financial statements.

Separate financial statements for the Housing Authority can be obtained from the City of West Covina, City Hall.

B) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
 Government-wide Financial Statements
 Fund financial statements
 Notes to financial statements
Government-wide Financial Statements:

Government-wide financial statements display information about the reporting government as a whole except for its fiduciary activities. These statements include separate columns for the governmental and businesstype activities of the primary government (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City. Interfund services provided and used are not eliminated in the process of consolidation.

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the governmentwide financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of Generally Accepted Accounting Principles.
52 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements rather than as an other financing source. Amounts paid to reduce longterm indebtedness of the reporting government are reported as a reduction of the related liability rather than as an expenditure.

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

Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds; each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate.

Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about the major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary statements represent assets held by the City in a custodial capacity for other individuals or organizations in the private purpose trust, pension trust, and custodial funds.

Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period.

Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Significant revenues subject to the criteria include taxes, licenses and permits, and intergovernmental revenues. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
53 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of "available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.

Revenues, expenditures, assets, and liabilities resulting from non-exchange transactions are recognized in accordance with the requirements of Generally Accepted Accounting Principles. The City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Therefore, recognition of governmental fund type revenue represented by receivables is reported as deferred inflows of resources until they meet the “availability” criteria.

Sales taxes, property taxes, franchise taxes, revenue from other agencies, rental income, occupancy taxes 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 to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government. The availability period for all revenues is 60 days.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures rather than as a reduction of a fund liability.

Proprietary and Fiduciary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund financial statements, the proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, 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, such as subsidies, taxes, and investment earnings result from non-exchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements rather than reported as an expenditure.

Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability rather than as an expenditure.

54 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The City's fiduciary private purpose trust funds are accounted for using the economic resources measurement focus and accrual basis of accounting. The private purpose trust fund accounts for the assets held by the City for the Successor Agency to the former Community Development Commission of the City. The City's fiduciary custodial fund accounts for assets held for the benefit of others, as applicable. Because these funds are not available for use by the City, fiduciary funds are not included in the governmental-wide statements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Interfund services provided and used are not eliminated in the process of consolidation.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues. Likewise, general revenues include all taxes.

When both restricted and unrestricted resources are combined and are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

Fund Classifications
The City reports the following major governmental funds:

The General Fund is the general operating fund of the City. This fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund The West Covina Housing Authority Special Revenue Fund is used to account for assets and related income received from the former Community Development Commission to be used for the administration of providing affordable housing in the City.

The Proposition A Special Revenue Fund accounts for the 0.5% sales tax collected in Los Angeles County which is used for transportation programs and projects.

The State Gas Tax Special Revenue Fund accounts for the City’s proportionate share of gas tax monies collected by the State of California and Proposition 1B monies which are used for street construction and maintenance.

The ARPA Special Revenue Fund accounts for the grant funds received from the American Rescue Plan Act.

The Citywide Debt Service Fund accounts for the payments of principal, interest, and related costs on the City long-term debt issues.

The City reports the following major proprietary fund:

The Computer Service Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises. The City's enterprise fund is used to account for computer services provided by the Police Department to other public agencies. 55 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Additionally, the City reports the following fund types:

The Internal Service Funds are used to account for vehicle and equipment maintenance and replacement, for the City's self-insurance programs, and for retirement health savings plans for qualified City employees.

Departments of the City are charged for the services provided or benefits received from these funds.

Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City reports a private-purpose trust fund. Custodial funds, as applicable, are used to account for the assets held for distribution by the City as an agent for another entity for which the City has custodial responsibility and accounts for the flow of assets. Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). Fiduciary funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary funds:

Successor Agency Private Purpose Trust Fund – accounts for assets and liabilities transferred in fiscal year 2012 from the Redevelopment Agency of the City of West Covina to the Successor Agency Trust Fund.

C) Cash and Investments
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 because they are not transferable and they have terms that are not affected by changes in market interest rates.

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 or sale of investments.

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.

For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity date of 3 months or less. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City.

D) Inventories
Inventory is stated at average cost. Physical counts of inventory are taken on a cyclical basis during each fiscal year with perpetual records adjusted to actual at that time. The City uses the consumption method of accounting for inventory.
56 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued E) Prepaid Items
Certain payments to vendors for costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements using the consumption method.

F) Notes and Loans Receivable
The accompanying financial statements report certain loans receivable for loans made to private developers, private homeowners, and other parties. Where applicable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment.

G) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received within 60 days after year end. The property tax calendar is as follows:

H) Claims and Judgements
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability (including incurred but not reported) has been incurred prior to yearend and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activities.

I) Compensated Absences Payable
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 recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City.

Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.

Lien date January 1 December 40% Advance
Levy date July 1 January 10% Advance
Due date November 1 and February 1 February Collection No. 1 Delinquent dates December 10 and April 10 April 35% Advance May Collection No. 2
July Collection No. 3
Property Tax Calendar County Remittance Dates and Percentages 57 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The General Fund and Computer Service Enterprise Fund typically have been used to liquidate the liability for compensated absences.

J) Capital Assets
Capital assets greater than $5,000 and infrastructure greater than $100,000 are capitalized and recorded at cost or at an estimated fair value of the assets at the time of acquisition where complete historical records do not exist. Contributed capital assets are valued at their acquisition value at the date of the contribution.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Capital assets include public domain infrastructure assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, medians, sewer and storm drains.

Depreciation has been provided using the straight-line method over the estimated useful life of the assets in the government-wide financial statements and in the fund financial statements of the proprietary and the private-purpose trust funds. Depreciation starts the year following acquisition. For capital assets, depreciation is recorded on a straight-line basis over the useful lives of the assets. The lives used for depreciation purposes of each capital asset class generally are:

K) Interest Payable
In the Government-Wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred. In the Fund Financial Statements, proprietary fund types recognize the interest payable when the liability is incurred.

L) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has certain items that qualify for reporting in this category: deferred outflows relating to the City’s net pension and OPEB liabilities.

Infrastructure - pavement 25 years
Infrastructure - other 20 - 75 years
Buildings 20 - 50 years
Improvements other than buildings 20 - 50 years
Equipment and Vehicles 5 - 25 years
Equipment and Machinery 5 - 25 years
Governmental Activities
Business-type Activities
58 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows for certain items under the modified accrual basis of accounting.

Accordingly, unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues related to taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also reports deferred inflows relating to the net pension and OPEB liabilities.

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

Investments are reported at fair value.

Generally accepted accounting principles require that the reported results for pensions must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used for CalPERS:

Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
The following timeframes are used for PARS:

Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
N) Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: June 30, 2023 Valuation Date; June 30, 2023 Measurement Date; and July 1, 2022 through June 30, 2023 Measurement Period.

O) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position. 59 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued P) Fund Balance
Nonspendable Fund Balance: These include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact, e.g., the principal of an endowment fund. Examples of “not in spendable form” include inventory, prepaid amounts, long-term notes and loans, property held for resale and other items not expected to be converted to cash. However, if the proceeds from the eventual sale or liquidation of the items would be considered restricted, committed or assigned (as defined further on) then these amounts would be included in the restricted, committed or assigned instead of the nonspendable classification. A debt service reserve fund held by a trustee is an example of fund balance in nonspendable form that is classified as restricted instead of nonspendable since the reserve is eventually liquidated to make the final debt service principal payment.

Restricted Fund Balance: Amounts that have externally enforceable limitations on use. The limitations on use can be imposed by creditors, grantors, or contributors as well as by constitutional provisions, enabling legislation, laws and government regulations.

Committed Fund Balance: Amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.

Assigned Fund Balance: Amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The City Council (Council) has by resolution authorized the City Manager to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. Additional formal action does not normally have to be taken for the removal of an assignment.

Unassigned Fund Balance: These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories, or negative balances. For all funds other than the General Fund, amounts expended in excess of resources that are restricted, committed, or assigned, negative unassigned fund balance may be necessary to report.

Q) Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements), as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
60 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued  Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in markets that are inactive; inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

R) Leases
Lessor: The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.  The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

S) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period.

Actual results could differ from those estimates.

61 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows:

Cash and investments as of June 30, 2024 consist of the following:

Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. This table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that addresses interest rate risk and concentrations of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City and investments in the City’s retirement enhancement and supplemental retirement defined benefit pension trust funds that are in the Public Agency Retirement Plans (PARS Trust Pool), rather than the general provisions of the California Government Code or the City’s investment policy.

Statement of Net Position:

Cash and Investments $ 128,729,271
Cash and Investments with Fiscal Agents 19,455,412 Restricted Cash and Investments 3,096,412 Statement of Fiduciary Net Position:

Cash and Investments 1,822,229
Cash and Investments with Fiscal Agents 1,575,022
Restricted Cash and Investments 6,514,513
Total Cash and Investments 161,192,859 $
Cash on Hand $ 17,960
Deposits with Financial Institutions 50,188,778
Investments 110,986,121
Total Cash and Investments 161,192,859 $
Authorized Maximum Maximum
Investment Types by Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* in One Issuer* U.S. Treasury Obligations Yes 5 years None None
U.S. Government Sponsored
Agency Securities Yes 5 years None None
Municipal Securities Yes 5 years 30% 5%
Supranationals Yes 5 years 30% 10%
Medium-Term Notes Yes 5 years 30% 5%
Collateralized Certificate of Deposit Yes 5 years 25% 25% Negotiable Certificates of Deposit Yes 5 years 30% 30%
Banker's Acceptance Yes 180 days 40% 30%
Commercial Paper Yes 270 days 25% 5%
Asset Backed Securities Yes 5 years 20% 20%
Money Market Mutual Funds Yes N/A 20% 10%
Repurchase Agreements Yes 100 days 20% 20%
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund Yes N/A None $75,000,000
*Based on state law requirements or investment policy requirements, whichever is more restrictive. 62 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS - Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are generally authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Investments Authorized by Pension Trust Agreements
Investments of pension trust fund contributions held by the trustee are governed by the trust agreements. The City selected an investment strategy allowed by the trust agreements with the objective of providing current income and moderated capital appreciation. The strategic ranges for the investment strategy selected by the City are as follows:

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

Maximum Maximum
Investment Types Maximum Percentage Investment
Authorized by State Law Maturity of Portfolio in One Issuer U.S. Treasury Obligations 5 years None None
U.S. Government Sponsored
Agency Securities 5 years None None
Municipal Securities 5 years 30% None
Supranationals 5 years 30% None
Medium-Term Notes 5 years 30% None
Collateralized Certificate of Deposit 5 years 25% None
Negotiable Certificates of Deposit 5 years 30% None
Banker's Acceptance 180 days None None
Commercial Paper 270 days 25% 5%
Money Market Mutual Funds 5 years 20% 10%
Repurchase Agreements 100 days 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund N/A None None
5% Cash
45% Fixed Income

48.50% Equities

1.50% REIT
63 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS – Continued
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements and the actual rating as of year-end by Standard and Poor’s or Moody’s or Fitch for each investment type:

Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There was no investment in any one issuer (other than U.S. Government Agencies, Supranationals, Money Market Funds, and external investment pools) that represent 5% or more of total City investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. 12 Months 13 to 24 25 to 60
Investment Type Total Or Less Months Months
Los Angeles County Investment Pool 33,817,074 $ $ 33,817,074 $ - $ - Local Agency Investment Fund 56,138,613 56,138,613 - - Held by Bond Trustees:

Money Market Mutual Funds 21,030,434 21,030,434 - - Total $ 110,986,121 $ 110,986,121 $ - $ - Remaining Maturity (in Months) Minimum
Investment Type Amount Legal Rating AAA Unrated
Los Angeles County Investment Pool 33,817,074 $ N/A $ 33,817,074 - $ Local Agency Investment Fund 56,138,613 N/A 56,138,613 - Held by Bond Trustees:

Money Market Mutual Funds 21,030,434 A 21,030,434 - Total $ 110,986,121 $ 21,030,434 $ 89,955,687 64 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
2) CASH AND INVESTMENTS – Continued
The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provisions for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. All the City’s deposits are either federally insured or collateralized as of June 30, 2024. Investments held by bond trustee are selected under the terms of the applicable trust agreement. The trustee acquires the investment and holds the investment on behalf of the reporting government.

Investment in County Investment Pool
The City is a voluntary participant in the Los Angeles County Investment Pool (LACIP) that is regulated by the California Government Code and the Los Angeles County Board of Supervisors under the oversight of the Los Angeles County Treasurer-Tax Collector. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amount based upon the City’s pro-rata share of the fair value provided by LACIP for the entire LACIP portfolio. The balance for withdrawal is based on the accounting records maintained by LACIP, which are recorded on an amortized cost basis.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the Entity’s investment in this pool is reported in the accompanying financial statements at amounts based on 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. Information regarding LAIF’s and the City’s exposure to risk (credit, market, or legal) is not currently available.

Fair Value of Investments
Investments (except those that may be reported at amortized cost) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. None of the investments held at year-end are subject to the fair value hierarchy.
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

Due to/from
The General Fund has loaned $61,091 to non-major governmental funds, and $205,022 to the enterprise fund to cover temporary cash deficits.
65 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS - Continued Advances to/from
Advances of $115,159 between the General Fund and the Auto Plaza Improvement District non-major special revenue fund represent cash advanced for the replacement of the reader board sign at the Auto Plaza.

Interfund transfers for the year ended June 30, 2024 are as follows:

The General Fund transferred $567,200 to the State Gas Tax Fund for an SB1 project. The General Fund transferred $13,131,897 to the Citywide Debt Service Fund for debt service payments. The General Fund transferred $2,373,211 to the Non-major Governmental Funds for various projects and operating expenditures.

The General Fund transferred $4,312,800 to the Internal Service Fund for deficits in the self-insurance fund, and to establish the OPEB Internal Service Fund.
4) NOTES AND LOANS RECEIVABLE

The following notes and loans receivable were outstanding as of June 30, 2024:

Several housing rehabilitation loans totaling $338,838 have been made to qualified applicants using Community Development Block Grants received by the City and housing set-aside funds of the former Commission’s redevelopment activities. These loans bear 5% interest and are repaid when title to the property changes. The City has included 5% of the balance in the allowance for doubtful accounts.

The Housing Authority has loans to first-time home buyers totaling $108,861. Loans are secured by second trust deeds and bear interest at 5%. Principal and interest are deferred for five years and are due monthly in years 6 through 30. The City has included 36% of the balance in the allowance for doubtful accounts.

State Non-major Internal
General Gas Tax Citywide Governmental Service
TRANSFERS OUT Fund Fund Debt Funds Funds Total
General Fund $ 567,200 - $ $ 13,131,897 $ 2,373,211 $ 4,312,800 $ 20,385,108 $ 567,200 - $ $ 13,131,897 $ 2,373,211 $ 4,312,800 $ 20,385,108

TRANSFERS IN
Housing Rehabilitation $ 338,838
First Time Homebuyer Loans 108,861
Housing Preservation Program 738,361
Home Improvement Program 644,011
Lark Ellen Towers 4,251,010
Executive Lodge Apartments Limited Partnership 5,975,678 West Covina Senior Villas, LLC 2,833,333
West Covina Senior Villas II, LP 8,513,885
CDBG Housing Loans 3,196,245
Other Loans 608,196
Less: Allowance for Doubtful Accounts (12,390,153)
Total Governmental Funds $ 14,818,265
66 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
4) NOTES AND LOANS RECEIVABLE - Continued
The Housing Authority also has housing preservation loans to qualified applicants using housing set-aside funds totaling $738,361. Principal and interest are deferred for ten years; after the tenth year loans bear interest at 5%.

Loans are repaid after the tenth year or when title to the property changes. The City has included 4% of the balance in the allowance for doubtful accounts.

Several housing improvement loans totaling $644,011 have been made to qualified applicants. The loans are secured by second trust deeds. The City has not included any of the balance in the allowance for doubtful accounts.

In May 1997, the Commission loaned $4,270,000 to Lark Ellen Towers. The loan was transferred to the Housing Authority from the dissolved former Commission. The loan is secured by a deed of trust. The loan accrues interest at 3% per annum and requires annual payments equal to the maximum of $35,000 or 50% of net profits earned by the project. The outstanding principal as of June 30, 2024 was $4,251,010.

In April 1998, the Commission loaned $5,622,300 to Executive Lodge Apartments Limited Partnership (Promenade Apartments project). The loan was transferred to the Housing Authority from the dissolved former Commission. The loan is secured by a deed of trust. The loan was amended and restated on April 1, 2017, with a principal of $6,056,621 accruing interest at 2.82% compounded annually and requires annual payments equal to 50% of “Available Cash Flow.” The outstanding principal as of June 30, 2024 was $5,975,678.

In May 2002, the Commission loaned $4,360,000 to West Covina Senior Villas, LLC. The loan is secured by a deed of trust. The loan does not accrue interest. The loan requires annual payments of $141,667 through May 2032 that are forgiven by the City unless the borrower defaults on the agreement. The outstanding principal as of June 30, 2024 was $2,833,333. The loan is likely to be forgiven; therefore, the City has included the entire balance in the allowance for doubtful accounts.

In May 2009, the Commission entered into an agreement with West Covina Senior Villas II, L.P. to provide $8,600,000 for the acquisition of real property in the City and construction and maintenance of an approximately 65-unit apartment complex to be rented to low-income and very low-income senior citizens. The loan is secured by a deed of trust. The loan does not accrue interest and is forgiven so long as the borrower does not default on the loan. The outstanding principal as of June 30, 2024 was $8,513,885. The loan is likely to be forgiven; therefore, the City has included the entire balance in the allowance for doubtful accounts.

The City has provided zero-interest housing loans totaling $3,196,245 using Community Development Block Grant funds. The City has included approximately 11% of these loans in the allowance for doubtful accounts.

Other notes consist of affordable housing loans of $400,000. The notes do not accrue interest and are forgiven unless the borrower sells or refinances the property. Additionally, the balance included a note of $208,196 for lowincome housing which accrues no interest and is forgivable if the owner maintains the low- and moderate-income housing status. The outstanding principal of these loans as of June 30, 2024 was $608,196. The loans are likely to be forgiven; therefore, the City has included the entire balance in the allowance for doubtful accounts. 5) LAND HELD FOR RESALE
Land held for resale is valued at the lower of cost or the sales price per contract with the developer. The land held for resale at June 30, 2024 was comprised of land to be used as open space or a municipal golf course in the amount of $3,007,802.

67 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
6) CAPITAL ASSETS
Depreciation expense was charged to the following functions for governmental activities in the Statement of Activities:

Beginning Ending
Governmental Activities: Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:

Land $ 48,356,495 $ - $ 48,356,495 - $
Rights of Way 14,376,498 - 14,376,498 -
Construction in Progress 22,107,773 5,396,103 (25,723,502) 1,780,374 Total Capital Assets, Not
Being Depreciated 84,840,766 5,396,103 (25,723,502) 64,513,367 Capital Assets Being Depreciated:

Buildings and Improvements 119,668,071 14,790,811 134,458,882 - Equipment and Vehicles 40,425,103 8,303,764 48,728,867 - Infrastructure - Pavement 203,157,461 2,574,837 205,732,298 - Infrastructure - Other 25,778,775 457,517 26,236,292 -
Total Capital Assets Being
Depreciated 389,029,410 26,126,929 415,156,339 -
Less Accumulated Depreciation:

Buildings and Improvements (56,563,630) (2,215,327) (58,778,957) - Equipment and Vehicles (31,494,436) (2,270,118) (33,764,554) - Infrastructure - Pavement (172,427,362) (6,060,027) (178,487,389) - Infrastructure - Other (19,807,599) (418,227) (20,225,826) - Total Accumulated Depreciation (280,293,027) (10,963,699) (291,256,726) - Net Capital Assets Being Depreciated 108,736,383 15,163,230 123,899,613 - Governmental Activities, Capital Assets 193,577,149 $ $ 20,559,333 $ (25,723,502) $ 188,412,980 General Government $ 298,212
Public Safety 1,833,451
Public Works 7,433,206
Community Services 1,398,830
$ 10,963,699
Beginning Ending
Business-type Activities: Balance Increases Decreases Balance Capital Assets Being Depreciated:

Equipment and Vehicles $ 1,027,538 $ - $ 1,027,538 - $
Less Accumulated Depreciation:

Equipment and Vehicles (1,027,538) - (1,027,538) -
Net Capital Assets Being Depreciated - - - -
Business-type Activities, Capital Assets $ - $ - $ - $ - 68 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
7) LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2024 are as follows:

The liability for compensated absences, Total OPEB, and Net Pension are generally liquidated by the General Fund and internal service funds.

Notes Payable – Direct Borrowing
Successor Agency Note
On December 4, 2015, the City and Successor Agency entered into a settlement agreement with the California Department of Finance (DOF) regarding the Other Funds Due Diligence Review. The agreement requires the City to repay the Successor Agency $11,578,351 for transfers that did not represent enforceable obligations.

The Successor Agency will then remit these funds to the Los Angeles County Auditor-Controller for allocation to the affected taxing entities. The amount of the note must be repaid through biannual payments in the amount of $289,459 each January 15th and June 15th until the loan is repaid in full on June 15, 2035. There is no interest charged on this repayment. The outstanding balance as of June 30, 2024 was $6,368,089. The following represents the future annual debt service requirements:

Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:

Direct Borrowing:

Notes Payable $ 6,947,007 $ (578,918) - $ $ 6,368,089 $ 578,918 Loans Payable 6,044,700 (261,159) - 5,783,541 283,681
2006 Lease Revenue Bonds 13,640,000 (695,000) - 12,945,000 730,000 2018 Lease Revenue Bonds 20,410,000 (950,000) - 19,460,000 990,000 Premium on Bonds 1,115,193 - (53,105) 1,062,088 53,105
2020 Lease Revenue Bonds 196,525,000 (4,210,000) - 192,315,000 4,525,000 Compensated Absences 4,379,497 4,014,579 (3,945,362) 4,448,714 3,587,761 Net Pension Liability 44,600,464 13,312,537 57,913,001 - - Total OPEB Liability 54,205,612 3,049,925 57,255,537 - 2,124,298 Claims Payable 20,511,381 8,411,243 (4,434,320) 24,488,304 7,578,180 Total $ 368,378,854 $ 28,788,284 $ (15,127,864) $ 382,039,274 $ 20,450,943 Business-type Activities:

Compensated Absences $ 17,268 $ 818 $ (16,850) $ 1,236 $ 1,236 Total $ 17,268 $ 818 $ (16,850) $ 1,236 $ 1,236
Fiscal Year Ending
June 30, Principal Interest Total
2025 $ 578,918 $ 186,786 $ 765,704
2026 578,918 179,661 758,579
2027 578,918 172,411 751,329
2028 578,918 165,877 744,795
2029 578,918 160,205 739,123
2030 - 2034 2,894,590 496,871 3,391,461
2035 578,909 7,200 586,109
Totals 6,368,089 $ $ 1,369,011 $ 7,737,100
69 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
7) LONG-TERM LIABILITIES - Continued
Energy Efficiency Loans Payable – Direct Borrowing
Solar Equipment Loan
In May 2021, the City entered into a lease-purchase agreement for the acquisition and installation of certain energy conservation equipment and improvements (solar) with an aggregate principal borrowing of $3,386,950.

The proceeds are to be used to pay for the energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.60% and are due and payable semi-annually on May 13th and November 13th each year, maturing on May 13, 2041. The General Fund will generally be responsible for making the debt service payments annually.

Non-Solar Equipment Loans
In May 2021, the City entered into a lease-purchase agreement for the acquisition and installation of certain energy conservation equipment including lighting and HVAC (non-solar) with an aggregate principal borrowing of $3,215,098. The proceeds are to be used to pay for the energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.05% and are due and payable semi-annually on May 13th and November 13th each year, maturing on May 13, 2036. The General Fund will generally be responsible for making the debt service payments annually. Annual debt service requirements follow:

Lease Revenue Bonds
2006 Lease Revenue Bonds, Series A and B (Big League Dreams Project) In September 2006, the City issued $10,710,000 of Lease Revenue Bonds, Series A and $7,295,000 of taxable Lease Revenue Bonds, Series B to provide financing for facilities and infrastructure related to the Big League Dreams sports park. The Series A bonds mature annually through June 1, 2036, in amounts ranging from $80,000 to $1,270,000, with interest rates that range from 4.0% to a maximum of 5.0% over the term of the bonds. The Series B bonds mature annually through June 1, 2036, in amounts ranging from $115,000 to $550,000, with interest rates that range from 5.39% to a maximum of 6.07% over the term of the bonds. The bonds are payable from lease payments as rental for certain public facilities. The reserve requirement was fully funded at June 30, 2024. The outstanding principal balance as of June 30, 2024 was $12,945,000.

The following represents the future annual debt service requirements:

Fiscal Year Ending
June 30, Principal Interest Total
2025 283,681 $ 191,234 $ 474,915 $
2026 307,696 181,853 489,549
2027 310,249 171,878 482,127
2028 317,502 161,772 479,274
2029 328,788 151,392 480,180
2030 - 2034 1,847,019 586,412 2,433,431
2035 - 2039 1,697,380 281,177 1,978,557
2040 - 2041 691,226 31,027 722,253
Totals 5,783,541 1,756,745 7,540,286
70 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
7) LONG-TERM LIABILITIES - Continued
2018 Lease Revenue Refunding Bonds, Series A and B
On November 20, 2018, the City issued $19,310,000 of Lease Revenue Bonds, Series A and $4,855,000 of taxable Lease Revenue Bonds, Series B to provide financing for the advance refunding of the City's 2002 Lease Revenue Bonds Series A, 2004 Lease Revenue Bonds Series A&B, and the 2013 Lease Revenue Refunding Bonds Series A. The Series A bonds mature annually through May 1, 2044, in amounts ranging from $460,000 to $125,000, with interest rates that range from 4.0% to a maximum of 5.0% over the term of the bonds. The Series B bonds mature annually through May 1, 2030, in amounts ranging from $345,000 to $500,000, with interest rates that range from 2.953% to a maximum of 4.469% over the term of the bonds. The bonds are payable from lease payments as rental for certain public facilities. The reserve requirement was fully funded as of June 30, 2024. The outstanding principal balance as of June 30, 2024 was $19,460,000.

The following represents the future annual debt service requirements:

Fiscal Year Ending
June 30, Principal Interest Total
2025 $ 730,000 $ 699,295 $ 1,429,295
2026 770,000 659,802 1,429,802
2027 820,000 618,100 1,438,100
2028 860,000 573,622 1,433,622
2029 905,000 526,930 1,431,930
2030 950,000 477,775 1,427,775
2031 1,005,000 426,155 1,431,155
2032 1,060,000 371,518 1,431,518
2033 1,120,000 313,864 1,433,864
2034 1,180,000 252,942 1,432,942
2035 1,725,000 188,699 1,913,699
2036 1,820,000 96,885 1,916,885
Totals 12,945,000 $ $ 5,205,587 $ 18,150,587
Fiscal Year Ending
June 30, Principal Interest Total
2025 990,000 $ 866,750 $ $ 1,856,750
2026 1,040,000 820,871 1,860,871
2027 1,085,000 772,151 1,857,151
2028 1,135,000 721,118 1,856,118
2029 1,190,000 667,466 1,857,466
2030 - 2034 6,760,000 2,420,345 9,180,345
2035 - 2039 6,680,000 808,200 7,488,200
2040 - 2044 580,000 71,200 651,200
Total $ 19,460,000 $ 7,148,101 $ 26,608,101
71 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
7) LONG-TERM LIABILITIES - Continued
2020 Lease Revenue Bonds, Series A
On July 23, 2020, the City issued $204,095,000 of Lease Revenue Bonds, Series A (taxable) to provide financing to pay the City’s unfunded pension liabilities to CalPERS, to establish a reserve fund, and pay issuance costs. The Series A bonds mature annually through August 1, 2044, in amounts ranging from $3,645,000 to $16,105,000, with interest rates that range from 1.747% to a maximum of 3.892% over the term of the bonds. The bonds are payable from lease payments as rental for certain public facilities. The reserve requirement was fully funded as of June 30, 2024. The outstanding principal balance as of June 30, 2024 was $192,315,000. The following represents the future annual debt service requirements:

Claims Payable
Claims payable are typically paid from the City’s Internal Service Self-Insurance Fund. There is no fixed payment schedule for claims liabilities.

Compensated Absences
The liability of $4,448,714 represents the governmental activities portion of total unpaid vacation and compensation time earned by employees of the City. There is no fixed payment schedule for earned but unpaid compensated absences. The General Fund typically has been used to liquidate the liability for compensated absences. The liability of $1,236 represents the business-type activity portion of total unpaid vacation and compensation time earned by employees of the City. There is no fixed payment schedule for earned but unpaid compensated absences.
8) SELF-INSURANCE
The City is exposed to various risks of loss related to its operation, including losses associated with errors and omissions, injuries to employees and members of the public. The City's Internal Service Self-Insurance Fund is used to account for and finance its uninsured risks of loss.

Description of Self-Insurance Pool Pursuant to Joint Powers Agreement As of July 1, 2021, the City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq.

Fiscal Year Ending
June 30, Principal Interest Total
2025 4,525,000 $ 6,813,563 $ $ 11,338,563
2026 4,560,000 6,711,662 11,271,662
2027 4,900,000 6,596,630 11,496,630
2028 5,265,000 6,462,372 11,727,372
2029 5,650,000 6,308,906 11,958,906
2030 - 2034 34,920,000 28,555,904 63,475,904
2035 - 2039 49,020,000 21,071,040 70,091,040
2040 - 2044 67,370,000 10,012,560 77,382,560
2045 16,105,000 313,403 16,418,403
Total 192,315,000 $ $ 92,846,040 $ 285,161,040
72 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
8) SELF-INSURANCE - Continued
The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.

The City participates in the excess workers' compensation and excess general liability programs of the Authority.

Excess Liability Program
Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $1,000,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risksharing-pools/ .

Excess Workers’ Compensation Program
The City has a retained limit of $1,000,000 per occurrence for workers’ compensation claims. The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.

Purchased Insurance
Pollution Legal Liability Insurance
The City of West Covina participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of West Covina. Coverage is on a claims-made basis. There is a $250,000 deductible, with a limit of $5 million per member.

Property Insurance
The City of West Covina participates in the All-Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $174,564,178. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.

Crime Insurance
The City of West Covina participates in the Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $3,000,000, and the deductible is $2,500.

73 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
8) SELF-INSURANCE - Continued
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24.

Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemented by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid.

The claims and judgments liability reported in the Internal Service Self-Insurance Fund is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims and judgments be 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 loss can be reasonably estimated. Claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $24,388,304 as of June 30, 2024.

In the past three years, no claims for general liability or workers’ compensation have exceeded the City’s purchased insurance coverage.

Changes in the claims and judgments payable amounts for the past two fiscal years for the Self-Insurance Fund are as follows:
9) NON-CITY OBLIGATION DEBT
Emanate Health, a California nonprofit public benefit corporation (Corporation), has requested that the California Statewide Communities Development Authority (CSCDA) participate in the issuance of one or more series of revenue bonds (Bonds) in an aggregate principal amount not to exceed $260,000,000, for the acquisition, construction, equipping, improvement, renovation, rehabilitation and/or remodeling of hospital, health care and related facilities (Project) to be owned and operated by the Corporation or one of its affiliates.

Claims and
Year Ended Beginning Changes in Claim End
June 30, of Year Estimates Payments of Year
2024 20,511,381 $ $ 8,411,243 $ 4,434,320 $ 24,488,304
2023 12,673,154 13,170,491 5,332,264 20,511,381
74 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
9) NON-CITY OBLIGATION DEBT - Continued
For each component of the Project, the issuance of the Bonds by the CSCDA must be approved by the applicable city in which the component of the Project is located before construction can begin. One component of the Project consists of the construction of two separate buildings at the Queen of the Valley Hospital campus located in West Covina.

On May 19, 2020, the City Council approved the issuance of the Bonds and Refunding Bonds by the CSCDA for the purposes of financing and/or refinancing the Project via the adoption of the resolution number 2020-26. 10) FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2024, are presented below:
11) DEFICIT FUND BALANCES
The Community Services Foundation non-major governmental fund had an unassigned fund balance deficit of $24,225 at June 30, 2024. The deficit will be eliminated through future revenues. 12) PENSION PLAN SUMMARY
The City currently has a total of two pension plans administered by CalPERS and two retirement enhancement plans administered by PARS. The pension plans consist of a miscellaneous agent plan and a safety agent plan (see Note 14 for a full description of the plans). The retirement enhancement plan consists of an EPMC replacement supplemental retirement plan and a supplemental retirement plan for executive staff and City Council (see Note 15 for a full description of the plans). The summary of the pension related liability, deferred inflows of resources and deferred outflows of resources are as follows:

West Covina State Other
General Housing Gas Citywide Governmental
Fund Authority Proposition A Tax ARPA Debt Funds Total
Nonspendable:

Prepaid Items $ 233,128 $ 5,750 $ - $ - $ - $ 101,901 - $ $ 340,779 Advances to Successor Agency - - - - - - - -
Advances to Other Funds 115,159 - - - - - 115,159 -
Land Held for Resale 3,007,802 - - - - - 3,007,802 -
Restricted for:

Affordable Housing 19,893,384 - - - - - 19,893,384 -
Debt Service - - - - 20, - 118,960 20,118,960 -
Pension Trust 17,880 - - - . - 17,880 -
Community Services - - - - - 3,567,438 - 3,567,438
Public Safety - - - - - 8,860,652 - 8,860,652
Public Works - 962,049 - 7,959,021 - 58,342,055 - 67,263,125 Assigned:

Capital Improvement - - - - - 8,487 - ,928 8,487,928
Unassigned 18,484,968 - - - - (24,225) - 18,460,743
Total Fund Balances $ 21,858,937 $ 19,899,134 $ 962,049 $ 7,959,021 $ 20, - $ 118,960 $ 79,335,749 $ 150,133,850 75 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
12) PENSION PLAN SUMMARY - Continued
13) EMPLOYEE RETIREMENT PLANS
General Information about the Pension Plans
Plan Descriptions: All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous and Safety Plans, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided: The Plans are agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plans regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plans’ June 30, 2022 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.

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

Miscellaneous Safety
Plan Plan EPMC EXEC Total
Deferred Outflows of Resources 8,573,814 $ 32, $ 810,859 $ 191,958 $ 98,561 $ 41,675,192 Deferred Inflows of Resources - - 141,011 - 141,011
Pension Liability/(Asset) 15,730,834 37,323,434 1,022,821 3,835,912 57,913,001 Prior to On or after Prior to On or after
Hire date January 1, 2011 January 1, 2011 January 1, 2013 January 1, 2013 Benefit formula 2.0% @ 55 2.5% @ 55 2.0% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50-67+ 50-67+ 50-67+ 52-67+
Monthly benefits, as a % of eligible compensation (1) (1) (1) (1) Required employee contribution rates 0% 8.00% 7% 7.75%
Required employer contribution rates 9.87% 9.87% 9.87% 9.87% Miscellaneous
76 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
13) EMPLOYEE RETIREMENT PLANS – Continued
*New hires who are already enrolled in CalPERS are eligible for benefits under the Tier II, and other new hires are enrolled in the PEPRA rate plans.

Employees Covered: At June 30, 2024 (June 30, 2022 valuation date), the following number of employees were covered by the benefit terms for the Plan:

Contributions: Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be 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. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.

Net Pension Liability/(Asset)
The City’s net pension liability/(asset) for the Plans is measured as the total pension liability, less the pension plans’ fiduciary net position. The net pension liability/(asset) of the Plans is measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability/(asset) is shown below.

Prior to Prior to On or after
Hire date July 1, 2012 January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 & up 50-55+ 50-57+
Monthly benefits, as a % of eligible compensation (1) (1) (1) Required employee contribution rates 9% 9% 13.50%
Required employer contribution rates 22.72% 22.72% 22.72% Safety
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 460 364
Inactive employees entitled to but not yet
receiving benefits 318 76
Active employees 116 169
Total 894 609
77 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
13) EMPLOYEE RETIREMENT PLANS – Continued
Actuarial Assumptions: The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Postretirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

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

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both shortterm and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

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

Valuation date June 30, 2022
Measurement date June 30, 2023
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Projected salary increase (1)
Investment rate of return 6.90%
Mortality (2)
Post Retirement Benefit Increase (3)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. (3) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies,

2.30% thereafter
78 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
13) EMPLOYEE RETIREMENT PLANS – Continued
Discount Rate - The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Changes in Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous and Safety Plans are as follows:

New Strategic
Asset Class Allocation Real Return (1,2)
Global Equity - Cap Weighted 30% 4.54%
Global Equity - Non-Cap Weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 (June 30, 2023 reporting date) 169,325,748 $ $ 157,809,036 $ 11,516,712 Changes in the year:

Service cost 1,318,320 1,318,320 -
Interest on the total pension liability 11,539,485 11,539,485 - Differences between expected and actual experience 2,575,267 2,575,267 - Changes of benefit terms 273,751 - 273,751
Contributions from the employer 1,538,513 - (1,538,513) Contributions from employees 623,900 - (623,900)
Net investment income 9,446,333 - (9,446,333)
Benefit payments, including refunds (11,190,041) (11,190,041) - Administrative/other expense (116,045) - 116,045
Net changes 4,516,782 302,660 4,214,122
Balance at June 30, 2023 (June 30, 2024 reporting date) 173,842,530 $ $ 158,111,696 $ 15,730,834 Miscellaneous
Increase (Decrease)
79 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
13) EMPLOYEE RETIREMENT PLANS – Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability/(asset) 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/(asset) 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:

Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense/(income) of $5,323,485 for the Miscellaneous Plan and $16,397,968 for the Safety Plan. At June 30, 2024, the City reported deferred outflows and deferred inflows for the Miscellaneous and Safety Plans from the following sources:

Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2022 (June 30, 2023 reporting date) 446,332,110 $ $ 418,083,434 $ 28,248,676 Changes in the year:

Service cost 6,622,214 6,622,214 -
Interest on the total pension liability 30,486,947 30,486,947 - Differences between expected and actual experience 4,789,224 4,789,224 - Changes of benefit terms 106,527 - 106,527
Contributions from the employer 5,593,515 - (5,593,515) Contributions from employees 2,414,142 - (2,414,142)
Net investment income 25,229,936 - (25,229,936)
Benefit payments, including refunds (25,398,301) (25,398,301) - Administrative/other expense (307,439) - 307,439
Net changes 16,606,611 7,531,853 9,074,758
Balance at June 30, 2023 (June 30, 2024 reporting date) 462,938,721 $ $ 425,615,287 $ 37,323,434 Increase (Decrease)
Safety
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability/(Asset) 36,867,642 $ 98,549,607 $ Current Discount Rate 6.90% 6.90%
Net Pension Liability/(Asset) $ 15,730,834 $ 37,323,434 1% Increase 7.90% 7.90%
Net Pension Liability/(Asset) $ (1,736,876) $ (20,633,320) 80 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
13) EMPLOYEE RETIREMENT PLANS – Continued
The $875,311 and $4,985,321 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction/(increase) of the net pension liability/(asset) in the year ended June 30, 2024. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:

Payable to the Pension Plan: The City had no outstanding contributions to the pension plan required for the year ended June 30, 2024.
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
A) General Information about the EPMC Replacement Supplemental Pension Plan Plan Description and Benefits Provided
Effective November 1, 2007, the City established an agent multiple-employer defined benefit plan to supplement the current CalPERS retirement benefits that is to be administered for the City by the Public Agency Retirement System (PARS), a third-party administrator. The plan meets the requirements of a pension trust under California Government Code. Phase II Systems is the PARS Trust Administrator. PARS issues a publicly available financial report that may be obtained from the Public Agency Retirement Services, 4350 Von Karman Ave., Newport Beach, CA 92660.

The EPMC Replacement Plan was established to replace a long-standing benefit for city employees no longer allowed by CalPERS. The plan provides for a benefit in an amount equal to the member's years of service, times the member's final pay, times the CalPERS age factor, times .70% for miscellaneous employees (times .89% for safety employees). At the time of retirement, employees will make an election to receive either a lump sum payment or receive ongoing stipends over their lifetime.

Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions subsequent to measurement date $ 875,331 $ 4,985,321 - $ $ - Differences between actual and expected experience 858,422 4,297,040 - - Changes in assumptions - 5,777,996 - - Net differences between projected and actual earnings on plan investments 6,840,061 17,750,502 - - Total $ 8,573,814 $ 32,810,859 - $ $ - Miscellaneous Safety Year Ending
June 30, Miscellaneous Safety
2025 $ 1,753,667 $ 8,654,015
2026 426,059 3,824,089
2027 5,297,415 14,751,173
2028 221,342 596,261
2029 - - Thereafter - - Deferred Outflows/Inflows of
Resources, Net
81 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Employees shall be eligible to receive benefits under this plan if he or she meets all of the following requirements under one of the following tiers:

Tier 1
 Full time miscellaneous employees on or after July 1, 2004 but hired prior to July 1, 2011.  Classified as a department head or city council, employee represented by the Confidential Employees’ Association, General Employees’ Association, West Covina Maintenance and Crafts Employees’ Association, Mid-Management Employees’ Association and Non-Sworn Support Employees’ Association.
 Has had compensable earnings under CalPERS impacted by CalPERS regulation, thereby causing a reduction in CalPERS benefits.
 At least fifty (50) years of age.
 Has completed at least one year of employment.
 Has terminated employment with the City and concurrently retired under  CalPERS under a regular service retirement and remains in retired status under CalPERS.  Has applied for benefits under this plan.

Tier 2
 Full time miscellaneous employees on or after July 1, 2004 but hired prior to July 1, 2011.  Fire safety employee on or after July 1, 2004 but hired prior to July 1, 2012.  Police management employee on or after July 1, 2004 but hired prior to December 31, 2012, or an employee hired prior to January 1, 2013 who promotes or transfers to police management position on or after January 1, 2013.
 Not represented by the West Covina Police Officers Association.  Has had compensable earnings under CalPERS impacted by CalPERS regulation, thereby causing a reduction in CalPERS benefits.
 At least fifty (50) years of age.
 Has completed at least one year of employment
 Has terminated employment with the City and concurrently retired under CalPERS under a regular service retirement, and remains in retired status under CalPERS.  Has applied for benefits under this plan.

Contributions - The City makes all contributions to these plans. Participants do not make any contributions.

The actuarially required contribution is determined on the funding policy and most recent measurement available when the contribution for the reporting period was adopted. The City is funding the plan to pay the benefit payments payable each year. The City’s contribution for the year ended June 30, 2024 was $44,098.

82 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Employees Covered
At June 30, 2023, the valuation date, the following employees were covered by the benefit terms for the plan:

Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Discount Rate
GASB 67 and 68 generally require that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses.

EPMC
Inactive employees or beneficiaries
currently receiving benefits 33
Inactive employees entitled but not
currently receiving benefits 22
Active employees 45
Total 100
EPMC
Valuation date June 30, 2023
Measurement date June 30, 2023
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 3.70% at June 30, 2023

3.59% at June 30, 2022
Inflation 2.50%
Mortality CalPERS 2000-2019
Experience Study
Mortality Improvement Mortality projected fully
generation with scale MP-2021
83 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The following circumstances were included in the evaluation of sufficiency for the City:
 Annual contributions of 0.7% of payroll (closed group basis) are assumed (beginning with 2015/16).  Benefit payments are annually withdrawn from the Trust until assets are exhausted and then benefit payments made directly by the City.
 All cash flows are assumed to occur on average halfway through the year.  The long-term expected rate of return on pension plan investments is 5.75%.  The actuarial assumptions do not change.
 GASB 67 and 68 specify that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan’s funded position.

Based on these circumstances, it is the actuary’s opinion that a depletion date projection is not appropriate.

Therefore, the discount rate is based on the projected portion of the Total Pension Liability funded by the Fiduciary Net Position in each future year. For the funded portion, the long-term expected rate of return on pension plan investments (5.75%) was used. For the unfunded portion, the Bond Buyer 20-Bond Go Index as of the June 30, 2023, measurement date (3.65%) was used. The discount rate used (3.65%) represents the single equivalent rate of return, as described under GASB 68 (paragraph 31).

The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation.

The table bellows reflects the long-term expected real rate of return by asset class:

The plan’s fiduciary net position was not projected to be available to make all projected future benefit payments of current retirees. Therefore, the discount rate for calculating the total pension liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payments, to the extent that the plan’s fiduciary net position is not projected to be sufficient. The City chose the Bond Buyer General Obligation 20-Bond Index resulting in the use of a 3.65% discount rate (single equivalent rate of return) in calculating the pension liability.

Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 60% 4.56%
Fixed Income 35% 0.78%
Cash 5% -0.50%
Total 100.00%
84 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Changes in the Net Pension Liability
The changes in the net pension liability for the Plan are as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability (asset) of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense of $90,389 for the Plan. At June 30, 2024, the City reported deferred outflows and deferred inflows related to the Plan from the following sources:

Total Plan Fiduciary Net Pension
Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2022 (June 30, 2023 reporting date) 1,115,83 $ 7 $ 72,481 $ 1,043,356 Changes in the year:

Service cost 29,900 - 29,900
Interest on the total pension liability 39,536 - 39,536 Changes of benefit terms - - -
Differences between expected and actual experience (30,960) - (30,960) Changes in assumptions (11,422) - (11,422)
Contributions from the employer - 51,212 (51,212)
Net investment income - 4,497 (4,497)
Benefit payments, including refunds (88,935) (88,935) - Administrative/other expense - (8,120) 8,120
Net changes (61,881) (41,346) (20,535)
Balance at June 30, 2023 (June 30, 2024 reporting date) 1,053,95 $ 6 $ 31,135 $ 1,022,821 Increase (Decrease)
1% Decrease 2.70%
Net Pension Liability $ 1,135,908
Current Discount Rate 3.70%
Net Pension Liability $ 1,022,821
1% Increase 4.70%
Net Pension Liability $ 928,723
85 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The $44,098 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025.

Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:

Payable to the Pension Plan: The City had no outstanding contributions to the pension plan required for the year ended June 30, 2024.

B) Supplemental Retirement Plan for Executive Staff and City Council Pension Plan Plan Description and Benefits Provided
Effective November 1, 2007, the City established a agent multiple-employer defined benefit plan to supplement the current CalPERS retirement benefits that is to be administered for the City by with the Public Agency Retirement System (PARS), a third-party administrator. The plan meets the requirements of a pension trust under California Government Code. Phase II Systems is the PARS Trust Administrator. The plan does not issue separate financial reports and is closed to new hires.

This agent multiple-employer defined benefit pension plan is separated into three tiers.

Tier 1 (full-time non-safety Department Head and the City Manager) and Tier 2 (City Council) provides an additional retirement amount to miscellaneous department heads, City Manager and City Council in an amount equal to the amount of $823 per month. This benefit amount increases each year by CPI, up to 2%. In order to be eligible for this benefit, participants must have five years of service with the City and must retire into PERS from the City.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 44,098 $ - $ Differences between actual and expected experience 34,515 24,768 Changes in assumptions 111,074 116,243
Net differences between projected and actual
earnings on plan investments 2,271 -
Total $ 191,958 $ 141,011
Year Ending
June 30, EPMC
2025 $ 16,033
2026 14,224
2027 (2,050)
2028 (21,358)
2029 -
Thereafter -
86 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Tier 3 (City Manager) provides an increased retirement benefit to a former City Manager consistent with the terms of his contract. It will convert the retirement formula for all years of prior CalPERS service at non-West Covina agencies to the CalPERS 2.5% @ 55 formula currently in place with the City of West Covina.

Contributions
All three tiers are combined for funding purposes in this plan. The City makes all contributions to these plans.

Participants do not make any contributions. The actuarially required contribution is determined on a pay as you go funding policy and most recent measurement available when the contribution for the reporting period was adopted. The City is funding the plan to pay the benefit payments payable each year. The City’s contribution for the year ended June 30, 2024 was $86,183.

Employees Covered
At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the plan:

Supplemental
Inactive employees or beneficiaries
currently receiving benefits 11
Active employees 1
Total 12
Supplemental
Valuation date June 30, 2023
Measurement date June 30, 2023
Actuarial cost method entry-age normal, closed to
new entrants
Actuarial assumptions:

Discount rate 3.67% at June 30, 2023

3.60% at June 30, 2022
Inflation 2.50%
Salary Increase 3.00%
Benefit Increase 2.00%
Mortality CalPERS 2000 - 2019
Experience Study
Investment Rate of Return 5.75%
87 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Discount Rate
GASB 67 and 68 generally require that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses.

A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 67 and 68 will often require that the actuary perform complex projections of future benefit payments and asset values. GASB 67 (paragraph 43) and 68 (paragraph 29) do allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left to professional judgment.

The following circumstances justify an alternative evaluation of sufficiency for the City:
 The City ceased contributions and withdrawals from the Trust. The City will pay benefits directly to retirees until the trust is sufficient, on an expected basis, to pay all remaining benefits.  All cash flows are assumed to occur on average halfway through the year.  The long-term expected rate of return on pension plan investments is 5.75%.  The actuarial assumptions do not change.
 GASB 67 and 68 specify that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan’s funded position.

Based on these circumstances, it is the actuary’s opinion that a depletion date projection is not appropriate.

Therefore, the discount rate is based on the projected portion of the Total Pension Liability funded by the Fiduciary Net Position in each future year. For the funded portion, the long-term expected rate of return on pension plan investments (5.75%) was used. For the unfunded portion, the Bond Buyer 20-Bond Go Index as of the June 30, 2023, measurement date, (3.65%) was used. The discount rate used (3.67%) represents the single equivalent rate of return, as described under GASB 68 (paragraph 31).

The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation.

The table below reflects the long-term expected real rate of return by asset class:

Target Expected Real
Asset Class Allocation Rate of Return
Equity 60% 4.56%
Fixed Income 35% 0.78%
Cash 5% -0.50%
Total 100.00%
88 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The plan’s fiduciary net position was not projected to be available to make all projected future benefit payments of current retirees. Therefore, the discount rate for calculating the total pension liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payments, to the extent that the plan’s fiduciary net position is not projected to be sufficient. The City chose the Bond Buyer General Obligation 20-Bond Index resulting in the use of a 3.65% discount rate (single equivalent rate of return) in calculating the pension liability.

Changes in the Net Pension Liability
The changes in the net pension liability, with a measurement date of June 30, 2023, for the Plan are as follows:

For the year ended June 30, 2024, the City recognized pension expense/(credit) of $126,180. At June 30, 2024, the City reported deferred outflows and deferred inflows related to the Plan from the following sources:

Total Plan Fiduciary Net Pension
Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2022 (June 30, 2023 reporting date) 4,109,65 $ 4 $ 317,934 $ 3,791,720 Changes in the year:

Service cost - - -
Interest on the total pension liability 144,880 - 144,880 Changes of benefit terms - - -
Differences between expected and actual experience 26,582 - 26,582 Changes in assumptions (38,862) - (38,862)
Contributions from the employer - 75,852 (75,852)
Net investment income - 19,068 (19,068)
Benefit payments, including refunds (170,456) (170,456) - Administrative/other expense - (6,512) 6,512
Net changes (37,856) (82,048) 44,192
Balance at June 30, 2023 (June 30, 2024 reporting date) 4,071,79 $ 8 $ 235,886 $ 3,835,912 Increase (Decrease)
1% Decrease 2.67%
Net Pension Liability $ 4,451,106
Current Discount Rate 3.67%
Net Pension Liability $ 3,835,912
1% Increase 4.67%
Net Pension Liability $ 3,338,652
89 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The $86,183 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025.

Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:

Payable to the Pension Plan: The City had no outstanding contributions to the pension plan required for the year ended June 30, 2024.
15) DEFINED CONTRIBUTION RETIREMENT PLAN
During the 1991-1992 fiscal year, the City established the West Covina Part-Time Retirement Plan, a defined contribution retirement plan, for all non-benefited, part-time employees in accordance with Internal Revenue Code Section 457, to conform to Section 3121(b)(7)(F) of the Internal Revenue Code added by the Omnibus Budget Reconciliation Act of 1990. The plan is administered by Nationwide Retirement Solutions. The plan was established by the authority of the City Council who retains the authority to amend the plan.

A defined contribution pension plan provides pension benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s account are to be determined instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant’s account and the returns earned on investments of the contributions.

Part-time, non-benefited, non-persable employees of the City must participate in the plan. During 2012-13, 195 part-time employees participated in the plan. All contributions to the plan vest immediately. An employee who leaves the City is entitled to all contributions and earnings applied to the individual’s account through the date of separation, less legally required income tax withholding. Contribution levels into the deferred compensation plan were established by City Council resolution at 0% for the City and 7.5% for non-benefited, non-persable part-time employees.

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 86,183 $ - $ Net differences between projected and actual
earnings on plan investments 12,378 -
Total $ 98,561 $ -
Year Ending
June 30, Supplemental
2025 $ 1,701
2026 (1,357)
2027 12,842
2028 (808)
2029 -
Thereafter -
90 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
15) DEFINED CONTRIBUTION RETIREMENT PLAN - Continued
During the year, total required and actual contributions amounted to $77,581 and covered payroll for the year ended June 30, 2024 totaled $1,536,658. No contributions were made by the City and employees contributed $115,251 (7.5% of current covered payroll). Total plan assets at June 30, 2024 were $880,170. Plan assets are held in trust for the exclusive benefit of participants and their beneficiaries and, therefore, are not included in the financial statements.
16) OTHER POST EMPLOYMENT BENEFITS
General Information About the OPEB Plan
Plan Descriptions
Medical - The City administers a single-employer defined benefit plan which provides healthcare benefits to eligible retirees and their dependents in accordance with various labor agreements. There are no assets accumulated in a GASB-compliant trust. City paid amounts are capped at varying amounts depending on employee's bargaining unit, as follows:
 Police:
o $1,005 per month for employees hired before July 1, 2012, with five years of sworn service or hired after July 1, 2012, with more than twenty years of sworn service o PEMHCA minimum amount ($151 and $157 per month in calendar years 2023 and 2024, respectively) for employees hired after July 1, 2012, with less than twenty years of sworn service
 Fire:
o $1,005 per month for employees hired before July 1, 2012, with five years of sworn service o PEMHCA minimum amount ($151 and $157 per month in calendar years 2023 and 2024, respectively) for employees hired after July 1, 2012
 Miscellaneous:
o PEMHCA minimum amount ($151 and $157 per month in calendar years 2023 and 2024, respectively).

Life Insurance - Eligible retirees, in accordance with various labor agreements, receive life insurance benefits from the City as follows:
 $500 Confidential/Exempt, General, Maintenance and Non-Sworn Safety bargaining units  $10,000 Executive Management, Mid-Management, Police Management (retired after September 1, 2006), Fire Management and Fire bargaining units
 $10,500 Police bargaining unit
Employees Covered by Benefit Terms - As of the June 30, 2023 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees 290
Inactive employees entitled to, but not yet receiving benefits 41 Retirees or spouses of retirees currently receiving benefits 395 Total 726
91 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
16) OTHER POST EMPLOYMENT BENEFITS – Continued
Contributions - The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and bargaining unit requirements is based on a pay-as-you-go basis (i.e. as medical insurance premiums become due). For fiscal year ended June 30, 2024, the City contributed $2,552,298 to the plan, including $2,124,298, for current premiums (100% of total premiums), and $428,000 of implied subsidy premiums.

Total OPEB Liability - The City’s total OPEB liability was measured as of June 30, 2023 and the total OPEB liability determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:

Discount Rate - The discount rate used to measure the total OPEB liability was 3.65% at June 30, 2023.

Changes in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate:

Valuation Date June 30, 2023
Actuarial Cost Method Entry Age Actuarial Cost
Mortality CalPERS 2000 - 2019 Experience Study
Health Care Trend Rate Non-Medicare - 7.9% for 2024, 3.45% ultimate Medicare - 5.65% for 2024, 3.45% ultimate
PEMHCA Minimum Increase 3.5% Annually
Inflation Rate 2.50%
Salary Changes 2.75%
Discount Rate 3.65% at June 30, 2023

3.54% at June 30, 2022
Total OPEB
Liability (TOL)
Balance at June 30, 2023 (2022 Measurement Date) $ 54,205,612 Changes in the year:

Service cost 1,266,718
Interest on the total OPEB liability 1,919,454
Differences between expected and actual experience 2,792,237 Changes of assumptions (427,546)
Benefit payments, including refunds (2,500,938)
Net changes 3,049,925
Balance at June 30, 2024 (2023 Measurement Date) $ 57,255,537 Discount Rate Valuation Discount Rate
1% Lower Discount Rate 1% Higher
Total OPEB liability (asset) 65,335,117 $ 57,255,537 $ 50,659,447 $ 92 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
16) OTHER POST EMPLOYMENT BENEFITS – Continued
Sensitivity of the Total OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the total OPEB liability of the District, as well as what the District’s Total OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:

OPEB Expense and Recognition of Deferred Outflows/Inflows of Resources Related to OPEB The Plan Fiduciary Net Position was $0 at the June 30, 2023 measurement date, as the City is not prefunding with an OPEB trust. The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits.

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The net difference between projected and actual earnings on OPEB plan investments is amortized using the straight-line method over 5 years, while all other amounts are amortized over the expected average remaining service lifetime (EARSL) of plan participants, which was 5.1 years as of the 2019 valuation date.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City recognized OPEB expense/(credit) of $1,281,689. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

The $2,552,298 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2025. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Total OPEB liability (asset) 54,984,720 $ 57,255,537 $ 59,638,471 $ Deferred Deferred
Outflows Inflows
OPEB Contributions Subsequent to the Measurement Date 2,552,298 $ - $ Changes of Assumptions 3,186,174 8,769,023
Net differences between expected
and actual experience 2,265,400 3,637,498
Total 8,003,872 $ 12,406,521 $
Year Ending
June 30,
2025 $ (1,669,605)
2026 (4,166,186)
2027 (1,699,175)
2028 446,168
2029 133,851
Thereafter -
93 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
17) COMMITMENTS AND CONTINGENCIES
A) In 1989, in order to assist in the expansion of the Fashion Plaza shopping center, the City enacted an ordinance to allow the Redevelopment Agency of the City of West Covina (the predecessor to the West Covina Community Development Commission) to receive the sales tax generated as a result of the expansion project. At the same time, the City enacted an ordinance providing a credit for sales tax payable by the developer in the amount equal to the sales tax due to the redevelopment agency. These sales tax ordinances and related agreements between the City and the Agency essentially transferred the sales tax increment due to the Fashion Plaza expansion project from the City to the Agency.

B) On July 25, 2005, the Board of Directors of the former West Covina Community Development Commission adopted Resolution No. 2005-50. By this resolution, the Board of Directors authorized the Commission to reimburse the City of West Covina over a period of 17 years for the sales tax revenue that had essentially been shifted from the City to the Agency. These budgeted interfund transfers between the primary government of the City of West Covina and the former Community Development Commission will be recorded in the fiscal year that they result in a flow of current financial resources, as required by the measurement focus prescribed for governmental funds. As a result of the dissolution of the Redevelopment Agency, the Department of Finance has deemed this agreement as an unenforceable obligation.

C) Outstanding construction commitments at year-end were approximately $1.3 million. 18) SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the Commission’s former non-housing redevelopment activities were transferred to the City in its fiduciary capacity as the Successor Agency to the Redevelopment Agency of the City of West Covina on February 1, 2012, as a result of the dissolution of California redevelopment agencies. These assets and liabilities and any activities related to them are reported in the City’s fiduciary private-purpose trust fund financial statements. Disclosures related to these assets and liabilities are as follows:

Due from the City of West Covina
As part of the dissolution process, AB1484 required the Successor Agency to have due diligence reviews of both the low and moderate-income housing funds and all other funds to be completed by October 15, 2012, and January 15, 2013, to compute the funds (cash) which were not needed by the Successor Agency to be retained to pay for existing enforceable obligations. The Successor Agency remitted $1,891,166 to the County Auditor-Controller (CAC) on December 19, 2012, for the low and moderate-income housing funds due diligence review.

The due diligence review for all other funds was finalized with the final letter of determination issued by the DOF on April 24, 2013. The DOF determined that the principal and interest payments made by the former Community Development Commission totaling $12,205,531 on various loans from the City of West Covina for the period January 1, 2011, to June 30, 2012, were on loans not made within the first two years of the formation of the former redevelopment agency. The DOF ordered the Successor Agency to remit $11,578,351 to the CAC within five days from the date of the letter. City management, in consultation with its legal counsel, did not agree with the DOF’s decision and filed a lawsuit to contest the decision. The City also did not remit the payments that were disallowed to the CAC. In December 2015, the City entered into a settlement agreement, which requires the City to repay the $11,578,351 over a period of 20 years. See additional details on the long-term payable in Note 8. As the City repays the Successor Agency, the Successor Agency will remit the amounts collected to the CAC.
94 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
18) SUCCESSOR AGENCY DISCLOSURES – Continued
The City reported a long-term liability of $6,368,089 (reported as part of notes payable) in governmental activities and a receivable of $6,368,089 in the Successor Agency related to the DOF’s determination at June 30, 2024.

Land Held for Resale
Land held for resale is valued at the lower of cost or the sales price per contract with the developer. The land held for resale at June 30, 2024 was comprised of BKK Project in the amount of $54,279.

Long-Term Liabilities
Changes in long-term liabilities for the Successor Agency are as follows:
2017 Tax Allocation Revenue Refunding Bonds
On February 14, 2017, the Successor Agency issued Tax Allocation Revenue Refunding bonds, Series 2017A (Tax-Exempt) and 2017B (Federally Taxable). These bonds refinanced the 1998 Housing Set-Aside Tax Allocation Bonds Series A & B, the 2001 Housing Set-Aside Tax Allocation Revenue Bonds, the 2002 Tax Allocation Refunding Bonds and the 1999 Taxable Variable Rate Demand Tax Allocation Bonds.

The bonds are payable from and secured solely from the Trust Estate, which will consist primarily of principal and interest payments on the Local Obligations to be purchased by the Authority as set forth in the Agency Indenture. The interest on the Series A bonds is payable semiannually on September 1 and March 1 of each year at interest rates ranging from 2% to 5%. The principal of the Series A bonds is due annually throughout 2026, in amounts ranging from $400,000 to $670,000. The interest on the Series B bonds is payable semiannually on September 1 and March 1 of each year at interest rates ranging from 1% to 3.75%. The principal of the Series B bonds is due annually throughout 2032, in amounts ranging from $145,000 to $1,215,000. The reserve requirement was fully funded as of June 30, 2024. The principal balance of outstanding bonds at June 30, 2024 was $4,155,000.

The future debt service requirements for the bonds are as follows:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Tax Allocation Bonds:

Series 2017, Refunding $ 5,410,000 $ (1,255,000) - $ $ 4,155,000 $ 1,290,000 Premium 164,723 - (14,975) 149,748 14,975
Developer Agreement Payable 88,596,648 - 88,596,648 - - Total $ 94,171,371 $ (1,269,975) - $ $ 92,901,396 $ 1,304,975 95 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
18) SUCCESSOR AGENCY DISCLOSURES – Continued
Developer Agreement Payable
On June 26, 1989, the Commission entered into an agreement with a developer to share certain future tax revenues generated by the Community Facilities District. Since 1992, the developer's share of revenues totaled $55,372,039, the unpaid balance accrues interest at a rate of 10%. The Commission has made payments to the developer totaling $21,678,037. The balance outstanding at June 30, 2024 was $88,596,648. The Developer Advances are repaid by the Commission only from available funds in the Repayment Fund. The Repayment Fund is funded in any year the total of the Minimum Special, Tax and Agency Contributions exceeds the annual debt service on the Public Financing of the 1996 Special Tax Refunding Bonds. According to the Developer Agreement, the Agency Contributions terminate once the outstanding principal and accrued interest on these bonds are paid in full.

The bonds were paid in full on September 1, 2022. As of June 30, 2024, the Community Facilities District had a restricted cash balance of $6,514,513. The City has engaged a consulting firm to provide a closeout report for the District’s remaining funds to determine the appropriate disposition. Once complete, a detailed Closeout Analysis and Findings Report will be issued with a list of delinquencies, the requirements for fund disposition, and the list of parcels and their refunds amount if applicable.

19) LEASES

Lease Receivable - In prior fiscal years, the City entered into various land lease agreements with third parties to lease pieces of land owned by the City. The initial lease terms ranged from 5 to 30 years. The City currently receives monthly payments from all leases of $42,064. The City recognized $422,051 in lease revenue and approximately $119,000 in interest revenue during the current fiscal year related to the various leases. As of June 30, 2024, the City’s receivable for lease payments was $6,412,504. Also, the City has a deferred inflow of resources associated with leases that will be recognized as revenue over the lease terms. As of June 30, 2024, the balance of the deferred inflow of resources was $6,412,504. 20) IMPLEMENTATION OF GASB PRONOUNCEMENTS
The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:

Statement No. 101, "Compensated Absences." The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024.

Fiscal Year Ending
June 30, Principal Interest Total
2025 1,290,000 $ 117,281 $ 1,407,281 $
2026 1,200,000 78,007 1,278,007
2027 145,000 58,409 203,409
2028 415,000 48,700 463,700
2029 425,000 33,469 458,469
2030 435,000 17,344 452,344
2031 150,000 6,375 156,375
2032 95,000 1,781 96,781
Totals 4,155,000 $ 361,366 $ 4,516,366 $
96 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2024
21) SUBSEQUENT EVENTS
In July 2024, the City entered into a settlement agreement for $1,250,000 with a former employee alleging harassment and wrongful termination. This claim was split proportionally amongst two of the City’s excess carriers, each with a $1,000,000 self-insured retention. The city received $265,218.01 from California Joint Powers Insurance Authority (CJPIA).

On August 12, 2024 the City started a trial for a wrongful termination claim with a former employee. August 14, 2024, the City’s excess carrier, Big Independent Cities Excess Pool (BICEP), initiated a settlement agreement.

The City has $1,000,000 in self-insured retention, any excess will be covered by the City’s excess carrier. 22) ERROR CORRECTIONS
Beginning Net Position for Governmental Activities was decreased by $44,337 due to a recalculation of accrued interest on Notes Receivable in previous years, and it was increased by $2,904,689 for loans receivable previously determined to be uncollectible and offset by an allowance for doubtful accounts. Beginning Fund Balance in the West Covina Housing Fund was decreased by $3,058,524 for accrued interest on Notes Receivable. The interest was reported as revenue in the previous years, and is now corrected and reported as a Deferred Inflow in the Housing Fund. Beginning Fund Balance in the non-major governmental funds was increased for the $2,904,689 in loans receivable mentioned above. The error corrections are as follows:

West Covina Non-major
Governmetal Housing Governmental
Activities Fund Funds
Beginning Net Position/Fund Balance 6,400,534 $ $ 23,191,204 $ 66,101,633 Error Correction 2,860,352 (3,058,524) 2,904,689
Restated Net Position/Fund Balance 9,260,886 $ $ 20,132,680 $ 69,006,322 97 Page intentionally left blank.
98 REQUIRED SUPPLEMENTARY INFORMATION
99 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 66,184,300 $ 71,590,600 $ 71,323,605 $ (266,995) $ Licenses and Permits 2,135,100 2,331,100 2,279,923 (51,177) Fines and Forfeitures 627,220 961,620 911,167 (50,453)
Investment Income 556,400 1,506,400 2,599,872 1,093,472 Rental Income 1,217,741 1,230,741 1,044,318 (186,423)
Revenue from Other Agencies 1,075,862 2,424,962 1,253,674 (1,171,288) Charges for Services 6,369,534 7,711,114 8,452,607 741,493 Other Revenues 2,565,683 2,565,683 2,361,173 (204,510)
Total Revenues 80,731,840 90,322,220 90,226,339 (95,881)

EXPENDITURES
Current:

General Government 5,242,449 4,998,974 4,819,722 179,252 Public Safety 52,151,443 54,999,903 54,504,622 495,281
Public Works 4,565,043 5,834,043 5,582,220 251,823
Community Services 2,634,822 2,952,903 3,441,745 (488,842) Community Development 762,627 692,122 662,727 29,395
Total Expenditures 65,356,384 69,477,945 69,011,036 466,909 Excess (Deficiency) of Revenues
over Expenditures 15,375,456 20,844,275 21,215,303 371,028

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out (15,199,375) (20,904,275) (20,385,108) 519,167 Total Other Financing Sources (Uses) (15,199,375) (20,904,275) (20,385,108) 519,167 Net Change in Fund Balances 176,081 (60,000) 830,195 890,195 Fund Balances, Beginning 21,028,742 21,028,742 21,028,742 - Fund Balances, Ending 21,204,823 $ 20,968,742 $ 21,858,937 $ 890,195 $ City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2024
Budgeted Amounts
100
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Income 72,000 $ 186,000 $ 279,888 $ 93,888 $ Other Revenues - - 176,002 176,002
Total Revenues 72,000 186,000 455,890 269,890

EXPENDITURES
Current:

Public Safety 64,400 64,400 31,824 32,576
Public Works - 16,004 10,817 5,187
Community Development 639,396 768,392 646,795 121,597
Total Expenditures 703,796 848,796 689,436 159,360
Excess (Deficiency) of Revenues
over Expenditures (631,796) (662,796) (233,546) 429,250

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance (631,796) (662,796) (233,546) 429,250 Fund Balance, Beginning, Restated 20,132,680 20,132,680 20,132,680 - Fund Balance, Ending $ 19,500,884 $ 19,469,884 $ 19,899,134 $ 429,250 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - West Covina Housing Authority Special Revenue Fund Year Ended June 30, 2024
Budgeted Amounts
101
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 3,460,069 $ 3,460,069 $ 3,088,020 $ (372,049) $
Investment Income 6,070 6,070 53,766 47,696
Total Revenues 3,466,139 3,466,139 3,141,786 (324,353)

EXPENDITURES
Current:

General Government - - - -
Public Works - - - -
Community Services 3,149,440 3,149,440 3,046,649 102,791 Total Expenditures 3,149,440 3,149,440 3,046,649 102,791 Excess (Deficiency) of Revenues
over Expenditures 316,699 316,699 95,137 (221,562)

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance 316,699 316,699 95,137 (221,562) Fund Balance, Beginning 866,912 866,912 866,912 -
Fund Balance, Ending $ 1,183,611 $ 1,183,611 $ 962,049 $ (221,562) City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Proposition A Special Revenue Fund
Year Ended June 30, 2024
Budgeted Amounts
102
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 2,709,511 $ 2,709,511 $ 2,828,524 $ 119,013 $
Investment Income 48,600 48,600 203,894 155,294
Revenue from Other Agencies 3,091,904 3,091,904 2,954,749 (137,155) Charges for Services 200 200 (200)
Total Revenues 5,850,215 5,850,215 5,987,167 136,952

EXPENDITURES
Current:

General Government - - 3,458 (3,458)
Public Works 7,710,191 10,825,363 4,041,451 6,783,912
Community Services - - 2,617 (2,617)
Community Development 1,800 1,800 224 1,576
Total Expenditures 7,711,991 10,827,163 4,047,750 6,779,413 Excess (Deficiency) of Revenues
over Expenditures (1,861,776) (4,976,948) 1,939,417 6,916,365

OTHER FINANCING SOURCES (USES)
Transfers In 567,200 567,200 567,200 -
Transfers Out - - - -
Total Other Financing Sources (Uses) 567,200 567,200 567,200 - Net Change in Fund Balance (1,294,576) (4,409,748) 2,506,617 6,916,365 Fund Balance, Beginning 5,452,404 5,452,404 5,452,404 - Fund Balance, Ending $ 4,157,828 $ 1,042,656 $ 7,959,021 $ 6,916,365 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - State Gas Tax Special Revenue Fund
Year Ended June 30, 2024
Budgeted Amounts
103
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Revenue from Other Agencies - $ - $ 4,642,536 $ 4,642,536 $ Total Revenues - - 4,642,536 4,642,536

EXPENDITURES
Current:

General Government - 8,628,632 4,392,536 4,236,096
Public Safety - - - -
Community Services - - 250,000 (250,000)
Total Expenditures - 8,628,632 4,642,536 3,986,096
Excess (Deficiency) of Revenues
over Expenditures - (8,628,632) - 8,628,632

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance (8,628,632) - 8,628,632 -
Fund Balance, Beginning - - - -
Fund Balance, Ending $ (8,628,632) - $ $ 8,628,632 - $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - ARPA Special Revenue Fund
Year Ended June 30, 2024
Budgeted Amounts
104
City of West Covina
Notes to Required Supplementary Information
Year Ended June 30, 2024

BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for governmental funds. The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the fiscal year. Public meetings are conducted prior to its adoption by the City Council. It is the City Council’s goal to adopt an annual balanced budget, a budget in which current revenues equal recurring expenditures.

After adoption of the final budget, the City Manager has authority to adjust the amounts appropriated within the funds and activities of a fund, provided, however, that the total appropriations for each fund may not exceed the amounts provided in the budget resolution. The City Manager is also authorized to approve continuing appropriations at year-end for capital improvement projects and other expenditures previously approved by the City Council. Budget modifications between funds and increases or decreases to a fund’s overall budget must be approved by the City Council.

Numerous properly authorized amendments are made during the fiscal year.

Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting (e.g. purchase orders) is employed by the City.
105
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
CalPERS Pension Plan - Miscellaneous
Total Pension Liability 2023 2022 2021 2020 2019
Service cost $ 1,318,320 $ 1,102,405 $ 1,148,088 $ 1,230,251 $ 1,488,940 Interest on total pension liability 11,539,485 11,240,257 11,357,041 11,161,901 11,031,185 Changes of benefit terms 273,751 - - - -
Changes in assumptions 4, - 428,742 - - -
Differences between expected and actual experience 2,575,267 (2,165,000) 605,918 (956,094) 1,166,025 Benefit payments, including refunds (11,190,041) (10,735,978) (10,630,997) (9,824,549) (9,388,384) Net change in total pension liability 4,516,782 3,870,426 2,480,050 1,611,509 4,297,766 Total pension liability - beginning 169,325,748 165,455,322 162,975,272 161,363,763 157,065,997 Total pension liability - ending (a) $ 173,842,530 $ 169,325,748 $ 165,455,322 $ 162,975,272 $ 161,363,763 Plan Fiduciary Net Position
Contributions - employer $ 1,538,513 $ 1,212,228 $ 41,343,222 $ 3,588,307 $ 3,041,783 Contributions - employee 623,900 671,818 489,857 658,924 597,814 Net investment income 9,446,333 (13,283,040) 33,695,359 5,681,537 7,327,093 Benefit payments (11,190,041) (10,735,978) (10,630,997) (9,824,549) (9,388,384) Net Plan to Plan Resource Movement - - - - -
Administrative/Other Expense (116,045) (112,164) (115,152) (162,590) (80,969) Other Miscellaneous Income/Expense - - - - -
Net change in plan fiduciary net position 302,660 (22,247,136) 64,782,289 (58,371) 1,497,337 Plan fiduciary net position - beginning 157,809,036 180,056,172 115,273,883 115,332,254 113,834,917 Plan fiduciary net position - ending (b) $ 158,111,696 $ 157,809,036 $ 180,056,172 $ 115,273,883 $ 115,332,254 Net pension liability - ending (a) - (b) $ 15,730,834 $ 11,516,712 $ (14,600,850) $ 47,701,389 $ 46,031,509 Plan fiduciary net position as a percentage
of the total pension liability 90.95% 93.20% 108.82% 70.73% 71.47% Covered payroll $ 6,394,459 $ 7,100,111 $ 6,699,270 $ 7,843,755 $ 8,498,816 Net pension liability as percentage of
covered payroll 246.01% 162.20% -217.95% 608.14% 541.62% Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Changes in Assumptions: In 2022, the accounting discount rate was reduced from 7.15 percent to 6.90 percent. 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 reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
106
2018 2017 2016 2015 2014
$ 1,598,999 $ 1,568,756 $ 1,395,164 $ 1,454,757 $ 1,653,769 10,735,301 10,499,411 10,423,152 10,180,561 9,849,865
- - - - -
(792,110) 8,138,458 (2, - 336,836) -
884,485 (1,086,666) (568,485) (134,455) -
(9,225,744) (8,527,256) (8,197,448) (7,534,397) (6,835,867) 3,200,931 10,592,703 3,052,383 1,629,630 4,667,767
153,865,066 143,272,363 140,219,980 138,590,350 133,922,583 $ 157,065,997 $ 153,865,066 $ 143,272,363 $ 140,219,980 $ 138,590,350 $ 2,610,696 $ 2,449,585 $ 1,871,710 $ 1,507,469 $ 1,441,234 785,970 788,064 819,011 714,712 921,495
9,216,240 11,531,815 590,110 2,500,142 17,189,513
(9,225,744) (8,527,256) (8,197,448) (7,534,397) (6,835,867) (266) - (4,880) 307 -
(172,889) (154,821) (66,948) (123,626) -
(328,320) - - - -
2,885,687 6,087,387 (4,988,445) (2,935,393) 12,716,375
110,949,230 104,861,843 109,850,288 112,785,681 100,069,306 $ 113,834,917 $ 110,949,230 $ 104,861,843 $ 109,850,288 $ 112,785,681 $ 43,231,080 $ 42,915,836 $ 38,410,520 $ 30,369,692 $ 25,804,669

72.48% 72.11% 73.19% 78.34% 81.38%
$ 12,173,646 $ 14,062,225 $ 9,349,710 $ 9,381,292 $ 10,025,879 355.12% 305.19% 410.82% 323.73% 257.38%
Measurement Period
107
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
CalPERS Pension Plan - Safety
Total Pension Liability 2023 2022 2021 2020
Service cost 6,622,214 $ 6,180,932 $ 5,563,564 $ 5,180,535 $ Interest on total pension liability 30,486,947 29,392,100 28,585,424 27,556,923 Changes of benefit terms 106,527 - - -
Changes in assumptions - 14,667,222 - -
Differences between expected and actual experience 4,789,224 860,268 4,243,730 (2,269,271) Benefit payments, including refunds (25,398,301) (24,245,865) (23,371,783) (22,204,388) Net change in total pension liability 16,606,611 26,854,657 15,020,935 8,263,799 Total pension liability - beginning 446,332,110 419,477,453 404,456,518 396,192,719 Total pension liability - ending (a) 462,938,721 $ 446,332,110 $ 419,477,453 $ 404,456,518 $ Plan Fiduciary Net Position
Contributions - employer 5,593,515 $ 4,920,292 $ 149,228,549 $ 12,592,111 $ Contributions - employee 2,414,142 2,052,325 2,010,282 1,806,665 Net investment income 25,229,936 (34,949,499) 87,171,072 12,466,983 Benefit payments (25,398,301) (24,245,865) (23,371,783) (22,204,388) Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (307,439) (293,155) (255,545) (354,567) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position 7,531,853 (52,515,902) 214,782,575 4,306,804 Plan fiduciary net position - beginning 418,083,434 470,599,336 255,816,761 251,509,957 Plan fiduciary net position - ending (b) 425,615,287 $ 418,083,434 $ 470,599,336 $ 255,816,761 $ Net pension liability - ending (a) - (b) $ 37,323,434 $ 28,248,676 $ (51,121,883) $ 148,639,757 Plan fiduciary net position as a percentage
of the total pension liability 91.94% 93.67% 112.19% 63.25% Covered payroll $ 19,136,013 $ 18,840,380 $ 17,133,244 $ 16,447,485 Net pension liability as percentage of
covered payroll 195.04% 149.94% -298.38% 903.72%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in Assumptions: In 2022, the accounting discount rate reduced from 7.15 percent to 6.90 percent. 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 reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 108
2019 2018 2017 2016 2015 2014
$ 5,573,847 $ 5,300,363 $ 5,376,792 $ 4,729,431 $ 4,604,800 $ 4,824,545 26,959,893 26,141,448 25,330,388 24,899,740 24,117,128 23,426,151 - - - - - -
(1,644,342) - 21,000,606 (5,858,071) - -
706,038 2,470,547 (2,764,123) (145,882) (1,760,971) -
(21,231,071) (20,444,515) (19,858,900) (18,951,025) (17,865,208) (17,362,607) 12,008,707 11,823,501 29,084,763 10,532,264 3,237,678 10,888,089 384,184,012 372,360,511 343,275,748 332,743,484 329,505,806 318,617,717 $ 396,192,719 $ 384,184,012 $ 372,360,511 $ 343,275,748 $ 332,743,484 $ 329,505,806 $ 11,176,490 $ 10,515,780 $ 10,058,079 $ 8,387,165 $ 7,339,064 $ 6,403,118 1,731,882 1,830,019 1,818,024 1,660,160 1,628,630 2,416,548 15,909,762 19,582,552 23,916,665 1,179,228 5,057,426 34,775,710 (21,231,071) (20,444,515) (19,858,900) (18,951,025) (17,865,208) (17,362,607) - (568) - 4,880 10,338 -
(174,192) (364,120) (321,946) (137,683) (254,287) -
568 (691,471) - - - -
7,413,439 10,427,677 15,611,922 (7,857,275) (4,084,037) 26,232,769 244,096,518 233,668,841 218,056,919 225,914,194 229,998,231 203,765,462 $ 251,509,957 $ 244,096,518 $ 233,668,841 $ 218,056,919 $ 225,914,194 $ 229,998,231 $ 144,682,762 $ 140,087,494 $ 138,691,670 $ 125,218,829 $ 106,829,290 $ 99,507,575

63.48% 63.54% 62.75% 63.52% 67.89% 69.80%
$ 16,283,859 $ 14,051,195 $ 17,084,933 $ 17,288,458 $ 16,517,686 $ 16,974,682 888.50% 996.98% 811.78% 724.29% 646.76% 586.21%
Measurement Period
109
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
PARS Pension Plan - EPMC
Total Pension Liability 2023 2022 2021 2020
Service cost 29,900 $ 38,336 $ 26,943 $ 30,564 $
Interest on total pension liability 39,536 28,982 31,913 41,806 Changes in assumptions (11,422) (148,744) 38,703 146,898 Differences between expected and actual experience (30,960) - 10,382 - Benefit payments, including refunds (88,935) (38,080) (81,760) (103,008) Net change in total pension liability (61,881) (119,506) 26,181 116,260 Total pension liability - beginning 1,115,837 1,235,343 1,209,162 1,092,902 Total pension liability - ending (a) $ 1,053,956 $ 1,115,837 $ 1,235,343 $ 1,209,162 Plan Fiduciary Net Position
Contributions - employer $ 51,212 $ 51,428 $ 52,666 $ 56,957 Contributions - employee - - - -
Net investment income 4,497 (8,794) 18,413 2,908
Benefit payments (88,935) (38,080) (81,760) (103,008)
Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (8,120) (3,086) (6,231) (10,788) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position (41,346) 1,468 (16,912) (53,931) Plan fiduciary net position - beginning 72,481 71,013 87,925 141,856 Plan fiduciary net position - ending (b) $ 31,135 $ 72,481 $ 71,013 $ 87,925 Net pension liability - ending (a) - (b) $ 1,022,821 $ 1,043,356 $ 1,164,330 $ 1,121,237 Plan fiduciary net position as a percentage
of the total pension liability 2.95% 6.50% 5.75% 7.27%
Covered Employee payroll $ 8,046,588 $ 6,238,365 $ 7,202,240 $ 10,222,450 Net pension liability as percentage of
covered employee payroll 12.71% 16.72% 16.17% 10.97%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Changes in Assumptions: In 2023, the discount rate was updated to 3.70%. In 2022, the discount rate was updated to 3.59% In 2021, the discount rate was updated to 2.31%. In 2020, the discount rate was updated to 2.67 percent. In 2019, the discount rate was updated to 3.90% and the mortality improvement scale was updated to Scale MP- 2019. In 2018, the discount rate used to measure the total pension liability was 4.86 percent. In 2017, amounts reported reflect an adjustment of the discount rate from

3.90 percent to 4.98 percent. In 2016, amounts reported reflect an adjustment of the discount rate from 3.50 percent to 3.90 percent. In 2015, amounts reported reflect an adjustment of the discount rate from 4.80 percent to 3.50 percent. In 2014, amounts reported were based on the 4.80 percent discount rate.

Benefit Changes: None.
110
2019 2018 2017 2016 2015 2014
$ 29,665 $ 29,701 $ 35,733 $ 40,000 $ 36,000 $ 36,000
46,211 46,463 35,268 32,000 28,000 36,000
90,640 10,475 (85,060) (37,000) 200,000 -
45,697 - 98,508 - (72,000) -
(80,968) (56,554) (42,877) (91,000) (9,000) (64,000)
131,245 30,085 41,572 (56,000) 183,000 8,000
961,657 931,572 890,000 946,000 763,000 755,000
$ 1,092,902 $ 961,657 $ 931,572 $ 890,000 $ 946,000 $ 763,000 $ 62,350 $ 60,056 $ 61,019 $ 56,000 $ 56,000 $ 65,000
- - - - - -
6,567 8,234 10,029 (1,000) 3,000 12,000
(80,968) (56,554) (42,877) (91,000) (9,000) (64,000)
- - - - - -
(769) (775) (9,456) (1,000) (7,000) (3,000)
- - - - - -
(12,820) 10,961 18,715 (37,000) 43,000 10,000
154,676 143,715 125,000 162,000 119,000 109,000
$ 141,856 $ 154,676 $ 143,715 $ 125,000 $ 162,000 $ 119,000 $ 951,046 $ 806,981 $ 787,857 $ 765,000 $ 784,000 $ 644,000

12.98% 16.08% 15.43% 14.04% 17.12% 15.60%
$ 14,447,921 $ 15,855,534 n/a $ 13,388,000 n/a n/a

6.58% 5.09% n/a 5.71% n/a n/a
Measurement Period
111
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
PARS Pension Plan - Executive Staff
Total Pension Liability 2023 2022 2021 2020
Service cost - $ - $ - $ 14,068 $
Interest on total pension liability 144,880 111,645 113,650 143,620 Changes in assumptions (38,862) (921,653) 81,046 879,137 Differences between expected and actual experience 26,582 - 168,573 - Benefit payments, including refunds (170,456) (173,697) (171,237) (155,804) Net change in total pension liability (37,856) (983,705) 192,032 881,021 Total pension liability - beginning 4,109,654 5,093,359 4,901,327 4,020,306 Total pension liability - ending (a) 4,071,798 $ 4,109,654 $ 5,093,359 $ 4,901,327 $ Plan Fiduciary Net Position
Contributions - employer 75,852 $ 80,949 $ 79,364 $ 77,814 $ Contributions - employee - - - -
Net investment income 19,068 (44,821) 96,424 15,031
Benefit payments (170,456) (173,697) (171,237) (155,804) Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (6,512) (4,948) (5,903) (9,475) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position (82,048) (142,517) (1,352) (72,434) Plan fiduciary net position - beginning 317,934 460,451 461,803 534,237 Plan fiduciary net position - ending (b) 235,886 $ 317,934 $ 460,451 $ 461,803 $ Net pension liability - ending (a) - (b) $ 3,835,912 $ 3,791,720 $ 4,632,908 $ 4,439,524 Plan fiduciary net position as a percentage
of the total pension liability 5.79% 7.74% 9.04% 9.42%
Covered Employee payroll $ - $ 269,287 - $ $ 219,555
Net pension liability as percentage of
covered employee payroll n/a n/a 1720.44% 2022.06%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Changes in Assumptions: In 2023, the discount rate was updated to 3.67%. In 2022, the discount rate was updated to 3.60%. In 2021, the discount rate was updated to 2.23% and the mortality improvement scale was updated to Scale MP-2021. In 2020, the discount rate was updated to 2.36%. In 2019, the discount rate was updated to 3.63% and the mortality improvement scale was updated to Scale MP-2019. In 2018, the discount rate used to measure the total pension liability was 4.16 percent. In 2017, amounts reported reflect an adjustment of the discount rate from 6.25 percent to 3.95 percent. In 2016, amounts reported reflect an adjustment of the discount rate from 4.70 percent to 6.25 percent. In 2015, amounts reported reflect an adjustment of the discount rate from 5.55 percent to 4.70 percent. In 2014, amounts reported were based on the 5.55 percent discount rate.

Benefit Changes: None.
112
Measurement Peri Measurement Period
2019 2018 2017 2016 2015 2014
$ 11,963 $ 12,235 $ 20,388 $ 30,000 $ 116,000 $ 112,000 133,267 130,692 161,327 141,000 178,000 168,000
281,983 (101,877) 803,038 (455,000) 346,000 -
477,904 (111,492) - (643,000) - -
(152,749) (139,056) (136,317) (137,000) (104,000) (82,000) 752,368 (98,006) 736,944 (421,000) (107,000) 198,000
3,267,938 3,365,944 2,629,000 3,050,000 3,157,000 2,959,000 $ 4,020,306 $ 3,267,938 $ 3,365,944 $ 2,629,000 $ 3,050,000 $ 3,157,000 $ 78,102 $ 74,100 $ 73,467 $ 78,000 $ 78,000 $ 59,000
- - - - - -
31,817 36,931 49,861 9,000 13,000 75,000
(152,749) (139,056) (136,317) (137,000) (104,000) (82,000) - - - - - -
(3,109) (3,379) (8,431) (4,000) (6,000) (6,000)
- - - - - -
(45,939) (31,404) (21,420) (54,000) (19,000) 46,000
580,176 611,580 633,000 687,000 706,000 660,000
$ 534,237 $ 580,176 $ 611,580 $ 633,000 $ 687,000 $ 706,000 $ 3,486,069 $ 2,687,762 $ 2,754,364 $ 1,996,000 $ 2,363,000 $ 2,451,000

13.29% 17.75% 18.17% 24.08% 22.52% 22.36%
$ 179,572 $ 172,512 n/a $ 143,000 n/a n/a
1941.32% 1558.01% n/a 1395.80% n/a n/a
113
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Contributions – Last 10 Years
Agent Multiple-employer Plan – Miscellaneous Plan
Schedule of Contributions – Last 10 Years
Agent Multiple-employer Plan – Safety Plan
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 875,331 $ (875,331) $ - $ 9,025,556 $ 9.70%
2023 1,541,102 (1,541,102) 8,453,677 - 18.23%
2022 1,212,353 (1,212,353) 7,100,111 - 17.08%
2021 3,887,907 (41,343,286) (37,455,379) 6,699,270 617.13% 2020 3,588,349 (3,588,349) 7,843,755 - 45.75%
2019 3,041,539 (3,041,539) 8,498,816 - 35.79%
2018 2,610,696 (2,610,696) 12,173,646 - 21.45%
2017 2,449,585 (2,449,585) 14,062,225 - 17.42%
2016 1,871,710 (1,871,710) 9,349,710 - 20.02%
2015 1,507,469 (1,507,469) 9,381,292 - 16.07%
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 4,985,321 $ $ (4,985,321) $ 20,183,420 - $ 24.70%
2023 5,590,927 (5,590,927) 19,136,013 - 29.22%
2022 4,920,803 (4,920,803) 18,840,380 - 26.12%
2021 14,008,612 (149,096,249) (135,087,637) 17,133,244 81.76% 2020 12,592,730 (12,592,730) 16,447,485 - 76.56%
2019 11,174,096 (11,174,096) 16,289,859 - 68.60%
2018 10,515,780 (10,515,780) 14,051,195 - 74.84%
2017 10,058,079 (10,058,079) 17,084,933 - 58.87%
2016 8,387,165 (8,387,165) 17,288,458 - 48.51%
2015 7,339,064 (7,339,064) 16,517,686 - 44.43%
114
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Contributions in Contributions
Relation to the as a % of
Contractually Actuarially Contribution Covered Covered
Required Determined Deficiency/ Employee Employee
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 $ 250,000 $ (44,098) $ 205,902 $ 6,751,360 0.65%
2023 251,000 (51,212) 199,788 8,046,588 0.64%
2022 173,000 (51,428) 121,572 6,238,365 0.82%
2021 173,000 (52,666) 120,334 7,202,240 0.73%
2020 134,000 (56,957) 77,043 10,222,450 0.56%
2019 134,000 (62,350) 71,650 14,447,921 0.43%
2018 104,000 (60,056) 43,944 n/a n/a
2017 105,000 (66,000) 39,000 n/a n/a
2016 105,000 (59,000) 46,000 13,737,000 0.43%
2015 82,000 (56,000) 26,000 n/a n/a
Schedule of Plan Contributions
Last 10 Years
PARS Pension Plan - EPMC
Contributions in Contributions
Relation to the as a % of
Contractually Actuarially Contribution Covered Covered
Required Determined Deficiency/ Employee Employee
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2024 $ 774,000 $ (86,183) $ 687,817 $ n/a -
2023 774,000 (75,852) 698,148 n/a -
2022 487,000 (80,949) 406,051 202,292 40.02%
2021 488,000 (79,364) 408,636 269,281 29.47%
2020 313,000 (77,814) 235,186 219,555 35.44%
2019 314,000 (78,102) 235,898 179,572 43.49%
2018 278,000 (74,100) 203,900 n/a n/a
2017 279,000 (73,000) 206,000 96,000 76.04%
2016 439,000 (78,000) 361,000 n/a n/a
2015 439,000 (78,000) 361,000 n/a n/a
PARS Pension Plan - Executive Staff
Last 10 Years
Schedule of Plan Contributions
115
City of West Covina
Required Supplementary Information
Year Ended June 30, 2024
Schedule of Changes in the Total OPEB
Liability and Related Ratios - Last 10 Years*
Total OPEB Liability 2023 2022 2021 2020
Service cost 1,266,718 $ 1,774,641 $ 2,306,792 $ 1,575,501 $ Interest on total OPEB liability 1,919,454 1,418,451 1,704,367 2,156,480 Changes in assumptions (427,546) (11,680,203) (3,773,434) 13,555,256 Differences between expected and actual experience 2,792,237 - (8,698,716) - Benefit payments, including refunds (2,500,938) (2,403,386) (2,513,526) (2,509,638) Net change in total OPEB liability 3,049,925 (10,890,497) (10,974,517) 14,777,599 Total OPEB liability - beginning 54,205,612 65,096,109 76,070,626 61,293,027 Total OPEB liability - ending (a) 57,255,537 $ 54,205,612 $ 65,096,109 $ 76,070,626 $ Covered Employee payroll 39,913,385 $ 36,002,475 $ 33,956,907 $ 33,069,467 $ Total OPEB liability as percentage of
covered - employee payroll 143.45% 150.56% 191.70% 230.03% Notes to Schedule of Changes in Total OPEB Liability and Related Ratios:

No assets are accumulated in a GASB-compliant trust.

Measurement Period
* OPEB schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.

Benefit Changes: None.
116
2019 2018 2017
$ 1,545,500 $ 1,619,250 $ 1,913,541
2,285,257 2,158,673 1,889,517
2,887,380 (2,524,608) (7,040,369)
(1,738,131) - -
(2,384,056) (2,470,254) (2,467,893)
2,595,950 (1,216,939) (5,705,204)
58,697,077 59,914,016 65,619,220
$ 61,293,027 $ 58,697,077 $ 59,914,016
$ 26,672,215 $ 28,239,505 $ 26,527,000
229.80% 207.85% 225.86%
Measurement Period
117
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118

SUPPLEMENTARY INFORMATION

119
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 600,000 $ 1,049,592 $ 449,592 $
Revenue from Other Agencies 1,431,880 1,341,441 (90,439) Total Revenues 2,031,880 2,391,033 359,153

EXPENDITURES
Current:

General Government 12,500 12,500 -
Public Safety - - -
Debt Service:

Principal 6,691,766 6,695,077 (3,311)
Interest 8,754,525 8,751,132 3,393
Total Expenditures 15,458,791 15,458,709 82
Excess (Deficiency) of Revenues
over Expenditures (13,426,911) (13,067,676) 359,235

OTHER FINANCING SOURCES (USES)
Transfers In 13,131,897 13,614,412 (482,515)
Transfers Out - - -
Total Other Financing
Sources (Uses) 13,614,412 13,131,897 (482,515)
Net Change in Fund Balances 187,501 64,221 (123,280)
Fund Balance, Beginning 20,054,739 20,054,739
Fund Balance, Ending 20,242,24 $ 0 $ 20,118,960 $ (123,280) City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Citywide Debt Service Fund
Year Ended June 30, 2024
120

OTHER GOVERNMENTAL FUNDS
121
City of West Covina
Other Governmental Funds
Year Ended June 30, 2024
Special Revenue Funds
Drug Enforcement Rebate
This fund accounts for the City’s portion of revenue received from drug asset seizures. The revenue is used to enhance the police programs.

Air Quality Improvement
This fund accounts for the City’s portion of motor vehicle registration fees collected under AB 2766. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks and buses. Money is distributed to the cities based on population, and additional discretionary grants are made based on specific requests.

Proposition C
This fund accounts for gasoline taxes which are restricted for transportation programs and projects.

Police Donations
This fund accounts for donations received and expenditures related to various police programs.

Transportation Development Act
This fund accounts for regional Transportation Development Act funds received from Los Angeles County which are used for local streets and roads.

AB939
This fund accounts for programs to reduce solid waste deposits in local landfills, pursuant to AB939.

Various Grants
This fund accounts for various Federal, State of California, and local grants that are restricted to expenditures for specific programs and projects.

Community Development Block Grant (CDBG)
This fund accounts for the activities of the Community Development Block Grant received from the U.S.

Department of Housing and Urban Development.

Inmate Welfare
This fund accounts for any money, refund, rebate or commission received from a telephone call from inmates while incarcerated to meet the requirements of California Penal Code: Part 3; Title 4; Chapter 1; Section 4025.

The monies are to be expended for the benefit, education, and welfare of inmates confined within the jail. Any funds that are not needed for the welfare of the inmates may be expended for the maintenance of the jail facilities.

Public Safety Augmentation
This fund accounts for sales tax revenue legally restricted for public safety. Revenue is used to augment police operations.

COPS/SLESA
This fund accounts for revenue from the State restricted for supplementing police operations. 122
City of West Covina
Other Governmental Funds
Year Ended June 30, 2024
Special Revenue Funds - Continued
Maintenance District #1
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.

Maintenance District #2
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.

Coastal Sage Shrub
This community facilities district was formed to provide for the restoration and ongoing maintenance of sensitive environmental habitat within the development area of a former landfill, including habitat for endangered species such as the California gnatcatcher (Polioptila californica).

Maintenance District #4
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.

Maintenance District #6
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.

Maintenance District #7
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.

Citywide Maintenance District
Revenue for the fund comes from annual special benefit assessments from property owners who benefit from covered improvements. This fund provides the majority of funding for the City’s street lighting system and street tree program.

Sewer Maintenance
This fund supports the City’s street sweeping program and maintenance of the City’s sewer system. The City also provides services to the City of Covina through this fund.

Auto Plaza Improvement District
This fund is an assessment district supported by six of West Covina’s automobile dealers to fund the construction, maintenance and operations of a reader board adjacent to Interstate 10. 123
City of West Covina
Other Governmental Funds
Year Ended June 30, 2024
Special Revenue Funds - Continued
General Plan Update
This fund accounts for the General Plan and Zoning Code Update Surcharge which is designated to be used for future plan updates.

Measure W
This fund accounts for the special parcel tax on all property owners in Los Angeles County approved November 2018. This tax raises funds to pay for stormwater projects including the infrastructure and any associated programs to capture, treat and recycle rainwater.

Charter PEG
This fund accounts for monies received from the City’s cable television franchisee for a one-time litigation settlement and for cable-related capital expenditures.

Art in Public Places
This fund accounts for development fees paid in lieu of acquisition and installation of approved artwork in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites.

West Covina Community Services Foundation
This fund accounts for activity of the West Covina Community Services Foundation, a 501(c) (3) nonprofit organization.

Measure R
This fund accounts for sales tax revenues collected in Los Angeles County to provide transportation related projects and programs.

Measure M
Under Measure M, the City receives a portion of a ½ cent sales tax levied in Los Angeles County to provide transportation related projects and programs. The City uses Measure M Funds for certain capital projects or transportation projects such as street rehabilitation and reconstruction, traffic monitoring systems, and congestion management and planning.

Measure H
This funding accounts for funding received and expenditures related to prevent and combat homelessness.

CASP Training
This fund accounts for funding received and expenditure incurred to support jailer mental health awareness training programs.

Sportsplex
This fund accounts for activity at the West Covina Sportsplex, a recreation facility which amenities include softball fields, a pavilion, playgrounds, and restaurants.

Capital Projects Funds
City Capital Projects
This fund accounts for all capital expenditures not being accounted for in the capital projects described below or in other fund types.
124
City of West Covina
Other Governmental Funds
Year Ended June 30, 2024
Capital Projects Funds - Continued
Construction Tax
This fund accounts for monies received from developers based on the construction of dwelling units and used primarily to construct public domain assets.

Information Technology
The funds paid into this fund are to be used for information technology capital outlay projects.

Development Impact Fees
This fund accounts for fees received from residential developers to help fund the purchase/replacement of vehicles/equipment along with the repairs and improvements of city facilities.

Park Development
This fund accounts for park fees received from residential developers to be used for new park construction.

Future Street Improvements
This fund accounts for monies paid in-lieu of street rehabilitation improvements. 125
Drug Air
Enforcement Quality Proposition Police
Rebate Improvement C Donations
ASSETS
Cash and Investments 7,011,775 $ 430,063 $ 3,143,369 $ 29,908 $ Restricted Cash and Investments - - - -
Receivables, net:

Accounts - - - -
Taxes - - 187,002 -
Notes and Loans
Other 64,165 - - -
Due from Other Agencies - 36,299 - -
Prepaid Items - - - -
Total Assets 7,075,940 $ 466,362 $ 3,330,371 $ 29,908 $

LIABILITIES
Accounts Payable 168,498 $ - $ 710,438 $ - $
Other Accrued Liabilities 5,773 - 1,762 -
Deposits Payable - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities 174,271 - 712,200 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 36,299 - -
Total Deferred Inflows of Resources - 36,299 - -

FUND BALANCE (DEFICITS)
Nonspendable - - - -
Restricted 6,901,669 430,063 2,618,171 29,908
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 6,901,669 430,063 2,618,171 29,908 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 7,075,940 $ 466,362 $ 3,330,371 $ 29,908 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2024
126
Transportation Community Public
Development Various Development Inmate Safety
Act AB939 Grants Block Grant Welfare Augmentation COPS/SLESA $ 42,601 $ 1,437,611 $ 1,049,948 $ - $ 7,242 $ 246,991 $ 34,936 - - - 4,614 - - -
- 57,336 - - - - -
- - - - 171,089 - 158,801
2,849,427
78,881 - 432 - - - -
- 384,623 - 37,797 - - -
- - - - - - -
$ 42,601 $ 1,516,492 $ 1,492,339 $ 2,891,838 $ 7,242 $ 418,080 $ 193,737 $ 1,203 $ 1,064 $ 109,609 $ 13,939 $ 13,482 - $ $ 1,833 - 234 200,374 4,223 19,542 - 4,278
- - - - - - -
- - 47,287 - - - -
- - - - - - -
1,203 1,298 309,983 65,449 33,024 - 6,111
- 385,395 - - - 158,801 -
- 385,395 - - - 158,801 -
- - - - - - -
41,398 1,515,194 796,961 2,826,389 7,242 385,056 28,825 - - - - - - -
- - - - - - -
41,398 1,515,194 796,961 2,826,389 7,242 385,056 28,825 $ 42,601 $ 1,516,492 $ 1,492,339 $ 2,891,838 $ 7,242 $ 418,080 $ 193,737 Continued
Special Revenue
127
Maintenance Maintenance Coastal Sage Maintenance
District #1 District #2 Shrub District #4
ASSETS
Cash and Investments 4,310,214 $ 1,178,104 $ 538,813 $ 2,218,973 $ Restricted Cash and Investments - - - -
Receivables, net:

Accounts - - - -
Taxes 8,722 1,492 - 11,461
Other - - - -
Due from Other Agencies - - - -
Prepaid Items - - - -
Total Assets 4,318,936 $ 1,179,596 $ 538,813 $ 2,230,434 $

LIABILITIES
Accounts Payable 75,952 $ 28,158 $ 5,568 $ 84,257 $
Other Accrued Liabilities 6,132 551 - 1,370
Deposits Payable - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities 82,084 28,709 5,568 85,627

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -
Total Deferred Inflows of Resources - - - -

FUND BALANCE (DEFICITS)
Nonspendable - - - -
Restricted 4,236,852 1,150,887 533,245 2,144,807
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 4,236,852 1,150,887 533,245 2,144,807 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 4,318,936 $ 1,179,596 $ 538,813 $ 2,230,434 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2024
128
Citywide Auto Plaza General
Maintenance Maintenance Maintenance Sewer Improvement Plan Measure Charter District #6 District #7 District Maintenance District Update W PEG $ 340,737 $ 474,152 $ 843,701 $ 14,220,707 $ 199,223 $ 1,305,096 $ 5,881,577 $ 13,569 - - - - - - - -
- - - - - - - -
2,275 2,993 25,934 57,523 - - - -
- - - - - - - -
- - - - - 1,347,540 - -
- - - - - - - -
$ 343,012 $ 477,145 $ 869,635 $ 14,278,230 $ 199,223 $ 1,305,096 $ 7,229,117 $ 13,569 $ 17,280 $ 16,670 $ 143,056 $ 749,539 $ 62,025 $ 23 $ 64,739 $ - 375 375 1,998 53,487 - - - -
- - - - - - - -
- - - - - - - -
- - - 115,159 - - - -
17,655 17,045 145,054 803,026 177,184 23 64,739 -
- - - - - 1,347,540 - -
- - - - - 1,347,540 - -
- - - - - - - -
325,357 460,100 724,581 13,475,204 22,039 1,305,073 5,816,838 13,569 - - - - - - - -
- - - - - - - -
325,357 460,100 724,581 13,475,204 22,039 1,305,073 5,816,838 13,569 $ 343,012 $ 477,145 $ 869,635 $ 14,278,230 $ 199,223 $ 1,305,096 $ 7,229,117 $ 13,569 Continued
Special Revenue
129
Art in West Covina
Public Community Measure Measure
Places Services Found. R M
ASSETS
Cash and Investments 727,480 $ - $ 5,459,175 $ 9,188,612 $ Restricted Cash and Investments 4,000 - - -
Receivables, net:

Accounts - - - -
Taxes - - 140,664 159,477
Other - 1,200 - -
Due from Other Agencies - - - -
Prepaid Items - 39,170 - -
Total Assets 731,480 $ 40,370 $ 5,599,839 $ 9,348,089 $

LIABILITIES
Accounts Payable - $ 11,621 $ 79,000 $ 155,800 $
Other Accrued Liabilities - - 6,063 -
Deposits Payable 4,000 - - -
Due to Other Funds - 13,804 - -
Advances from Other Funds - - - -
Total Liabilities 4,000 25,425 85,063 155,800

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -
Total Deferred Inflows of Resources - - - -

FUND BALANCE (DEFICITS)
Nonspendable - 39,170 - -
Restricted 727,480 - 5,514,776 9,192,289
Assigned - - - -
Unassigned (24,225) - - -
Total Fund Balances (Deficits) 727,480 14,945 5,514,776 9,192,289 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 731,480 $ 40,370 $ 5,599,839 $ 9,348,089 City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2024
Special Revenue
130
CASP
Measure Training Construction Information Development
H Fund Sportsplex City Tax Technology Impact Fees
$ 51,427 $ 113,461 $ 65,300 $ 8,551,388 $ 245,225 $ 508,502 $ 685,834 - - - - - - -
- - - - - - -
- - - - - - -
- 112 3,061 - - - -
- - - - - - -
- - - - 62,731 - -
$ 51,427 $ 113,573 $ 68,361 $ 8,551,388 $ 245,225 $ 571,233 $ 685,834 $ - $ 38,235 - $ $ 59,207 $ 29,037 - $ $ -
- 30,126 - 4,253 - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - 68,361 63,460 29,037 - -
- - - - - - -
- - - - - - -
- - - - 62,731 - -
51,427 113,573 - 245,225 - 479,465 685,834
- - 8,487,928 - - - -
- - - - - - -
51,427 113,573 8,487,928 - 245,225 542,196 685,834
$ 51,427 $ 113,573 $ 68,361 $ 8,551,388 $ 245,225 $ 571,233 $ 685,834 Continued
Special Revenue Capital Projects
131
Future
Park Street
Development Improvements Total
ASSETS
Cash and Investments 7,542,476 $ 428,172 $ 78,526,362 $ Restricted Cash and Investments - - 8,614
Receivables, net:

Accounts - - 57,336
Taxes - - 927,433
2,849,427
Other - - 147,851
Due from Other Agencies - - 1,806,259
Prepaid Items - - 101,901
Total Assets 7,542,476 $ 428,172 $ 84,425,18 $ 3

LIABILITIES
Accounts Payable - $ - $ 2,640,233 $
Other Accrued Liabilities - - 340,916
Deposits Payable - - 4,000
Due to Other Funds - - 61,091
Advances from Other Funds - - 115,159
Total Liabilities - - 3,161,399

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 1,928,035
Total Deferred Inflows of Resources - - 1,928,035

FUND BALANCE (DEFICITS)
Nonspendable - - 101,901
Restricted 7,542,476 428,172 70,770,145
Assigned - - 8,487,928
Unassigned - - (24,225)
Total Fund Balances (Deficits) 7,542,476 428,172 79,335,749 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) 7,542,476 $ 428,172 $ 84,425,18 $ 3 City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2024
Capital Projects
132
Page intentionally left blank.
133
Drug Air
Enforcement Quality Proposition Police
Rebate Improvement C Donations

REVENUES
Taxes - $ - $ 2,380,775 $ - $
Special Assessments - - - -
Investment Income 201,232 11,250 88,397 901
Rental Income - - - -
Revenue from Other Agencies 2,521,247 108,830 - -
Charges for Services - - 12,357 -
Other Revenues 120,273 - 3,138 1,920
Total Revenues 2,842,752 120,080 2,484,667 2,821

EXPENDITURES
Current:

General Government - - - -
Public Safety 1,575,729 - - 4,209
Public Works - 57,242 472,762 -
Community Services - - 1,712,695 -
Community Development - - 8,000 -
Total Expenditures 1,575,729 57,242 2,193,457 4,209
Excess (Deficiency) of Revenues
Over Expenditures 1,267,023 62,838 291,210 (1,388)

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 1,267,023 62,838 291,210 (1,388) Fund Balances, Beginning, as Previously Reported 5,634,646 367,225 2,326,961 31,296 Restatement for Correction of an Error - - - -
Fund Balances, Beginning, as Restated 5,634,646 367,225 2,326,961 31,296 Fund Balances - Ending $ 6,901,669 $ 430,063 $ 2,618,171 $ 29,908 Special Revenue
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2024
134
Transportation Community Public
Development Various Development Inmate Safety
Act AB939 Grants Block Grant Welfare Augmentation COPS/SLESA $ - $ - $ - $ - $ 970,096 - $ $ -
- - - - - - -
1,293 40,179 39,036 - 239 13,308 1,917
- - - - - - -
- 1,012,655 - 180,813 - 311,793 -
- - - - - - -
312,310 - 67,003 - - - -
1,293 352,489 1,118,694 180,813 239 983,404 313,710
- - - - - - -
- 630,766 - 409 1,620 1,159,514 284,885
1,779 63,773 172,870 8,979 - - -
- 384,117 29 209,810 - - -
- 187,479 - 37,558 - - -
1,779 63,802 1,375,232 256,756 1,620 1,159,514 284,885
(486) 288,687 (256,538) (75,943) (1,381) (176,110) 28,825 - - - - - - -
- - - - - - -
- - - - - - -
(486) 288,687 (256,538) (75,943) (1,381) (176,110) 28,825 41,884 1,226,507 1,053,499 (2,357) 8,623 561,166 -
- - 2,904,689 - - - -
41,884 1,226,507 1,053,499 2,902,332 8,623 561,166 -
$ 41,398 $ 1,515,194 $ 796,961 $ 2,826,389 $ 7,242 $ 385,056 $ 28,825 Continued
Special Revenue
135
Maintenance Maintenance Coastal Sage Maintenance
District #1 District #2 Shrub District #4

REVENUES
Taxes 733,252 $ 253,016 $ 107,649 $ - $
Special Assessments - - - 1,156,012
Investment Income 122,711 32,787 15,813 62,014
Rental Income - - - -
Revenue from Other Agencies - - - -
Charges for Services - - - -
Other Revenues - - - -
Total Revenues 855,963 285,803 123,462 1,218,026

EXPENDITURES
Current:

General Government - - - -
Public Safety - - - -
Public Works 505,772 187,045 79,861 1,115,481
Community Services - - - -
Community Development - - - -
Total Expenditures 505,772 187,045 79,861 1,115,481
Excess (Deficiency) of Revenues
Over Expenditures 350,191 98,758 43,601 102,545

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 350,191 98,758 43,601 102,545 Fund Balances, Beginning, as Previously Reported 3,886,661 1,052,129 489,644 2,042,262 Restatement for Correction of an Error - - - -
Fund Balances, Beginning, as Restated 3,886,661 1,052,129 489,644 2,042,262 Fund Balances - Ending $ 4,236,852 $ 1,150,887 $ 533,245 $ 2,144,807 Special Revenue
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2024
136
Citywide Auto Plaza General
Maintenance Maintenance Maintenance Sewer Improvement Plan Measure Charter District #6 District #7 District Maintenance District Update W PEG $ - $ - $ 407,208 - $ $ 128,505 $ 1,347,540 - $ $ -
153,616 173,979 1,868,113 3,853,822 - - - -
9,551 13,564 22,494 375,493 5,275 159,455 - 404
- - - - - - - -
- - - - - - - -
- - - - 162,064 - - -
- - - - - - - -
163,167 187,543 1,890,607 4,636,523 133,780 162,064 1,506,995 404 - - - - - - - -
- - - 316 - - - -
148,896 169,600 1,870,334 2,297,902 - 311,916 - -
- - 173 - - - - -
- - 5 105,718 16 - - -
148,896 169,600 1,870,512 2,298,234 105,718 311,916 - - 14,271 17,943 20,095 2,338,289 28,062 162,064 1,195,079 404 - - - - - - - -
- - - - - - - -
- - - - - - - -
14,271 17,943 20,095 2,338,289 28,062 162,064 1,195,079 404 311,086 442,157 704,486 11,136,915 (6,023) 1,143,009 4,621,759 13,165 - - - - - - - -
311,086 442,157 704,486 11,136,915 (6,023) 1,143,009 4,621,759 13,165 $ 325,357 $ 460,100 $ 724,581 $ 13,475,204 $ 22,039 $ 1,305,073 $ 5,816,838 $ 13,569 Continued
Special Revenue
137
Art in West Covina
Public Community Measure Measure
Places Services Found. R M

REVENUES
Taxes - $ - $ 1,785,023 $ 2,015,670 $
Special Assessments - - - -
Investment Income 21,780 - 157,760 252,811
Rental Income - - - -
Revenue from Other Agencies - - - -
Charges for Services - - 2,615 -
Other Revenues - 104,036 - -
Total Revenues 21,780 104,036 1,945,398 2,268,481

EXPENDITURES
Current:

General Government - - - -
Public Safety - 5,673 - -
Public Works - - 689,172 268,722
Community Services - 92,466 367,739 -
Community Development - 67,614 - -
Total Expenditures - 165,753 1,056,911 268,722
Excess (Deficiency) of Revenues
Over Expenditures 21,780 (61,717) 888,487 1,999,759

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 21,780 (61,717) 888,487 1,999,759 Fund Balances, Beginning, as Previously Reported 705,700 76,662 4,626,289 7,192,530 Restatement for Correction of an Error - - - -
Fund Balances, Beginning, as Restated 705,700 76,662 4,626,289 7,192,530 Fund Balances - Ending $ 727,480 $ 14,945 $ 5,514,776 $ 9,192,289 Special Revenue
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2024
138
CASP
Measure Training Construction Information Development
H Fund Sportsplex City Tax Technology Impact Fees
$ - $ - $ - $ - $ - $ - $ -
- - - - - - -
1,092 3,557 - - 7,352 - -
- 126,936 - - - - -
(19,189) - - - 309,848 - -
- - - - - - -
42,616 - - - 90,150 - 84,500
43,708 (15,632) 126,936 - 7,352 399,998 84,500
- - - - 306,297 - -
- - - - - 32,803 -
- - 631,521 - 2,900 - -
- 998,547 - - - - -
- - - - - - -
- - 998,547 631,521 2,900 306,297 32,803
43,708 (15,632) (871,611) (631,521) 4,452 93,701 51,697 - 871,611 - 1,501,600 - - -
- - - - - - -
- 871,611 - 1,501,600 - - -
43,708 (15,632) 870,079 - 4,452 93,701 51,697
7,719 129,205 7,617,849 - 240,773 448,495 634,137
- - - - - - -
7,719 129,205 7,617,849 - 240,773 448,495 634,137
$ 51,427 $ 113,573 $ 8,487,928 - $ $ 245,225 $ 542,196 $ 685,834 Continued
Special Revenue Capital Projects
139
Future
Park Street
Development Improvements Total

REVENUES
Taxes - $ - $ 10,128,734 $
Special Assessments - - 7,205,542
Investment Income 223,495 - 1,885,160
Rental Income - - 126,936
Revenue from Other Agencies - - 4,425,997
Charges for Services - - 177,036
Other Revenues 427,050 - 1,252,996
Total Revenues 650,545 - 25,202,401

EXPENDITURES
Current:

General Government - - 306,297
Public Safety - - 3,695,924
Public Works 15,471 - 9,071,998
Community Services - - 3,765,576
Community Development - - 406,390
Total Expenditures 15,471 - 17,246,185
Excess (Deficiency) of Revenues
Over Expenditures 635,074 - 7,956,216

OTHER FINANCING SOURCES (USES)
Transfers In - - 2,373,211
Transfers Out - - -
Total Other Financing Sources (Uses) - - 2,373,211
Net Change in Fund Balances 635,074 - 10,329,427
Fund Balances, Beginning, as Previously Reported 6,907,402 428,172 66,101,633 Restatement for Correction of an Error - - 2,904,689
Fund Balances, Beginning, as Restated 6,907,402 428,172 69,006,322 Fund Balances - Ending 7,542,476 $ 428,172 $ 79,335,74 $ 9 Capital Projects
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2024
140
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 32,990 $ 201,232 $ 168,242 $
Revenues from Other Agencies - 2,521,247 2,521,247
Other Revenues - 120,273 120,273
Total Revenues 32,990 2,842,752 2,809,762

EXPENDITURES
Current:

Public Safety 2,730,039 1,575,729 1,154,310
Total Expenditures 2,730,039 1,575,729 1,154,310
Excess (Deficiency) of Revenues
over Expenditures (2,697,049) 1,267,023 3,964,072

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (2,697,049) 1,267,023 3,964,072 Fund Balance, Beginning 5,634,646 5,634,646 -
Fund Balance, Ending 2,937,597 $ 6,901,66 $ 9 $ 3,964,072 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Drug Enforcement Rebate Special Revenue Fund Year Ended June 30, 2024
141
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 3,400 $ 11,250 $ 7,850 $
Revenue from Other Agencies 136,500 108,830 (27,670)
Other Revenues - - -
Total Revenues 139,900 120,080 (19,820)

EXPENDITURES
Current:

Public Works 226,500 57,242 169,258
Total Expenditures 226,500 57,242 169,258
Excess (Deficiency) of Revenues
over Expenditures (86,600) 62,838 149,438

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (86,600) 62,838 149,438
Fund Balance, Beginning 367,225 367,225 -
Fund Balance, Ending 280,62 $ 5 $ 149,438 430,063 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Air Quality Improvement Special Revenue Fund Year Ended June 30, 2024
142
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 2,594,875 $ 2,380,775 $ (214,100) $
Investment Income 28,010 88,397 60,387
Charges for Services - 12,357 12,357
Other Revenues - 3,138 3,138
Total Revenues 2,622,885 2,484,667 (138,218)

EXPENDITURES
Current:

Public Works 539,681 472,762 66,919
Community Services 2,201,280 1,712,695 488,585
Community Development 6,591 8,000 (1,409)
Total Expenditures 2,747,552 2,193,457 554,095
Excess (Deficiency) of Revenues
over Expenditures (124,667) 291,210 415,877

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (124,667) 291,210 415,877
Fund Balance, Beginning 2,326,961 2,326,961 -
Fund Balance, Ending 2,202,294 $ 2,618,171 $ 415,877 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Proposition C Special Revenue Fund
Year Ended June 30, 2024
143
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 370 $ 901 $ 531 $
Other Revenues 1,000 1,920 920
Total Revenues 1,370 2,821 1,451

EXPENDITURES
Current:

Public Safety 12,000 4,209 7,791
Total Expenditures 12,000 4,209 7,791
Excess (Deficiency) of Revenues
over Expenditures (10,630) (1,388) 9,242

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (10,630) (1,388) 9,242
Fund Balance, Beginning 31,296 31,296 -
Fund Balance, Ending 20,666 $ 29,908 $ 9,242 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Police Donations Special Revenue Fund Year Ended June 30, 2024
144
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ 1,293 $ 1,293 $
Revenue from Other Agencies 70,000 - (70,000)
Total Revenues 70,000 1,293 (68,707)

EXPENDITURES
Current:

Public Works 175,939 1,779 174,160
Total Expenditures 175,939 1,779 174,160
Excess (Deficiency) of Revenues
over Expenditures (105,939) (486) 105,453

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (105,939) (486) 105,453
Fund Balance, Beginning 41,884 41,884 -
Fund Balance, Ending (64,055) $ 41,398 $ 105,453 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Transportation Development Act Special Revenue Fund Year Ended June 30, 2024
145
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 12,540 $ 40,179 $ 27,639 $
Other Revenues 292,000 312,310 20,310
Total Revenues 304,540 352,489 47,949

EXPENDITURES
Current:

Public Works 184,715 63,773 120,942
Community Services - 29 (29)
Total Expenditures 184,715 63,802 120,913
Excess (Deficiency) of Revenues
over Expenditures 119,825 288,687 168,862

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 119,825 288,687 168,862
Fund Balance, Beginning 1,226,507 1,226,507 -
Fund Balance, Ending 1,346,332 $ 1,515,194 $ 168,862 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - AB 939 Special Revenue Fund
Year Ended June 30, 2024
146
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 7,220 $ 39,036 $ 31,816 $
Revenue from Other Agencies 1,485,465 1,012,655 (472,810) Other Revenues 20,000 67,003 47,003
Total Revenues 1,512,685 1,118,694 (393,991)

EXPENDITURES
Current:

Public Safety 691,593 630,766 60,827
Public Works 12,706,899 172,870 12,534,029
Community Services 410,572 384,117 26,455
Community Development 580,000 187,479 392,521
Total Expenditures 14,389,064 1,375,232 13,013,832
Excess (Deficiency) of Revenues
over Expenditures (12,876,379) (256,538) 12,619,841

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (12,876,379) (256,538) 12,619,841 Fund Balance, Beginning 1,053,499 1,053,499 -
Fund Balance, Ending (11,822,880 $ ) $ 796,961 $ 12,619,841 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Various Grants Special Revenue Fund Year Ended June 30, 2024
147
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ - $
Revenues from Other Agencies 2,516,679 180,813 (2,335,866) Other Revenues - - -
Total Revenues 2,516,679 180,813 (2,335,866)

EXPENDITURES
Current:

Public Safety 1,000,400 409 999,991
Public Works 727,945 8,979 718,966
Community Services 1,010,030 209,810 800,220
Community Development 330,008 37,558 292,450
Total Expenditures 3,068,383 256,756 2,811,627
Excess (Deficiency) of Revenues
over Expenditures (551,704) (75,943) 475,761

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (551,704) (75,943) 475,761
Fund Balance, Beginning, Restated 2,902,332 2,902,332 - Fund Balance, Ending 2,350,62 $ 8 $ 2,826,389 $ 475,761 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Community Development Block Grant Special Revenue Fund Year Ended June 30, 2024
148
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ 239 $ 239 $
Charges for Services 1,500 - (1,500)
Total Revenues 1,500 239 (1,261)

EXPENDITURES
Current:

Public Safety 2,000 1,620 380
Total Expenditures 2,000 1,620 380
Excess (Deficiency) of Revenues
over Expenditures (500) (1,381) (881)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (500) (1,381) (881)
Fund Balance, Beginning 8,623 8,623 -
Fund Balance, Ending 8,123 $ 7,242 $ (881) $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Inmate Welfare Special Revenue Fund Year Ended June 30, 2024
149
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 972,700 $ 970,096 $ (2,604) $
Investment Income 9,140 13,308 4,168
Total Revenues 981,840 983,404 1,564

EXPENDITURES
Current:

Public Safety 1,157,045 1,159,514 (2,469)
Total Expenditures 1,157,045 1,159,514 (2,469)
Excess (Deficiency) of Revenues
over Expenditures (175,205) (176,110) (905)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (175,205) (176,110) (905)
Fund Balance, Beginning 561,166 561,166 -
Fund Balance, Ending 385,961 $ 385,056 $ (905) $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Public Safety Augmentation Special Revenue Fund Year Ended June 30, 2024
150
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 3,480 $ 1,917 $ (1,563) $
Revenue from Other Agencies 285,000 311,793 26,793
Total Revenues 288,480 313,710 25,230

EXPENDITURES
Current:

Public Safety 285,650 284,885 765
Total Expenditures 285,650 284,885 765
Excess (Deficiency) of Revenues
over Expenditures 2,830 28,825 25,995

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 2,830 28,825 25,995
Fund Balance, Beginning - - -
Fund Balance, Ending 2,830 $ 28,825 $ 25,995 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - COPS/SLESA Special Revenue Fund
Year Ended June 30, 2024
151
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 679,100 $ 733,252 $ 54,152 $
Investment Income 38,000 122,711 84,711
Total Revenues 717,100 855,963 138,863

EXPENDITURES
Current:

Public Works 890,142 505,772 384,370
Total Expenditures 890,142 505,772 384,370
Excess (Deficiency) of Revenues
over Expenditures (173,042) 350,191 523,233

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (173,042) 350,191 523,233
Fund Balance, Beginning 3,886,661 3,886,661 -
Fund Balance, Ending 3,713,61 $ 9 $ 4,236,852 $ 523,233 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #1 Special Revenue Fund Year Ended June 30, 2024
152
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 249,500 $ 253,016 $ 3,516 $
Investment Income 7,550 32,787 25,237
Total Revenues 257,050 285,803 28,753

EXPENDITURES
Current:

Public Works 528,164 187,045 341,119
Total Expenditures 528,164 187,045 341,119
Excess (Deficiency) of Revenues
over Expenditures (271,114) 98,758 369,872

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (271,114) 98,758 369,872
Fund Balance, Beginning 1,052,129 1,052,129 -
Fund Balance, Ending 781,015 $ 1,150,88 $ 7 $ 369,872
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #2 Special Revenue Fund Year Ended June 30, 2024
153
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 98,500 $ 107,649 $ 9,149 $
Investment Income 4,550 15,813 11,263
Total Revenues 103,050 123,462 20,412

EXPENDITURES
Current:

Public Works 103,050 79,861 23,189
Total Expenditures 103,050 79,861 23,189
Excess (Deficiency) of Revenues
over Expenditures - 43,601 43,601

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances - 43,601 43,601
Fund Balance, Beginning 489,644 489,644 -
Fund Balance, Ending 489,644 $ 533,245 $ 43,601 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Coastal Sage Shrub Special Revenue Fund Year Ended June 30, 2024
154
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 1,013,390 $ 1,156,012 $ 142,622 $
Investment Income 17,960 62,014 44,054
Total Revenues 1,031,350 1,218,026 186,676

EXPENDITURES
Current:

Public Works 1,693,050 1,115,481 577,569
Total Expenditures 1,693,050 1,115,481 577,569
Excess (Deficiency) of Revenues
over Expenditures (661,700) 102,545 764,245

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (661,700) 102,545 764,245
Fund Balance, Beginning 2,042,262 2,042,262 -
Fund Balance, Ending 1,380,562 $ 2,144,80 $ 7 $ 764,245 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #4 Special Revenue Fund Year Ended June 30, 2024
155
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 158,220 $ 153,616 $ (4,604) $
Investment Income 2,060 9,551 7,491
Total Revenues 160,280 163,167 2,887

EXPENDITURES
Current:

Public Works 332,044 148,896 183,148
Total Expenditures 332,044 148,896 183,148
Excess (Deficiency) of Revenues
over Expenditures (171,764) 14,271 186,035

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (171,764) 14,271 186,035
Fund Balance, Beginning 311,086 311,086 -
Fund Balance, Ending 139,322 $ 325,357 $ 186,035 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #6 Special Revenue Fund Year Ended June 30, 2024
156
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 176,220 $ 173,979 $ (2,241) $
Investment Income 3,130 13,564 10,434
Total Revenues 179,350 187,543 8,193

EXPENDITURES
Current:

Public Works 328,236 169,600 158,636
Total Expenditures 328,236 169,600 158,636
Excess (Deficiency) of Revenues
over Expenditures (148,886) 17,943 166,829

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (148,886) 17,943 166,829
Fund Balance, Beginning 442,157 442,157 -
Fund Balance, Ending 293,271 $ 460,100 $ 166,829 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #7 Special Revenue Fund Year Ended June 30, 2024
157
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 1,868,880 $ 1,868,113 $ (767) $
Investment Income 8,140 22,494 14,354
Total Revenues 1,877,020 1,890,607 13,587

EXPENDITURES
Current:

Public Works 2,614,695 1,870,334 744,361
Community Services - 173 (173)
Community Development - 5 (5)
Total Expenditures 2,614,695 1,870,512 744,183
Excess (Deficiency) of Revenues
over Expenditures (737,675) 20,095 757,770

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (737,675) 20,095 757,770
Fund Balance, Beginning 704,486 704,486 -
Fund Balance, Ending (33,189 $ ) $ 724,581 $ 757,770
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Citywide Maintenance District Special Revenue Fund Year Ended June 30, 2024
158
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 344,000 $ 407,208 $ 63,208 $
Special Assessments 3,898,300 3,853,822 (44,478)
Investment Income 109,900 375,493 265,593
Charges for Services - - -
Total Revenues 4,352,200 4,636,523 284,323

EXPENDITURES
Current:

Public Safety 200 316 (116)
Public Works 6,622,317 2,297,902 4,324,415
Community Development - 16 (16)
Total Expenditures 6,622,517 2,298,234 4,324,283
Excess (Deficiency) of Revenues
over Expenditures (2,270,317) 2,338,289 4,608,606

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (2,270,317) 2,338,289 4,608,606 Fund Balance, Beginning 11,136,915 11,136,915 -
Fund Balance, Ending 8,866,59 $ 8 $ 13,475,204 $ 4,608,606 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Sewer Maintenance Special Revenue Fund Year Ended June 30, 2024
159
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 101,080 $ 128,505 $ 27,425 $
Investment Income 1,290 5,275 3,985
Total Revenues 102,370 133,780 31,410

EXPENDITURES
Current:

Community Development 63,520 105,718 (42,198)
Total Expenditures 63,520 105,718 (42,198)
Excess (Deficiency) of Revenues
over Expenditures 38,850 28,062 (10,788)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 38,850 28,062 (10,788)
Fund Balance, Beginning (6,023) (6,023) -
Fund Balance, Ending 32,827 $ 22,039 $ (10,788 $ )
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Auto Plaza Improvement District Special Revenue Fund Year Ended June 30, 2024
160
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Charges for Services 302,500 $ 162,064 $ (140,436) $
Investment Income - - -
Total Revenues 302,500 162,064 (140,436)

EXPENDITURES
Current:

Community Development 500,000 - 500,000
Total Expenditures 500,000 - 500,000
Excess (Deficiency) of Revenues
over Expenditures (197,500) 162,064 359,564

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (197,500) 162,064 359,564
Fund Balance, Beginning 1,143,009 1,143,009 -
Fund Balance, Ending 945,509 $ 1,305,07 $ 3 $ 359,564
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Plan Update Special Revenue Fund Year Ended June 30, 2024
161
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,370,000 $ 1,347,540 $ (22,460) $
Investment Income 11,520 159,455 147,935
Investment Income - - -
Total Revenues 1,381,520 1,506,995 125,475

EXPENDITURES
Current:

Public Works 1,708,747 311,916 1,396,831
Total Expenditures 1,708,747 311,916 1,396,831
Excess (Deficiency) of Revenues
over Expenditures (327,227) 1,195,079 1,522,306

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (327,227) 1,195,079 1,522,306 Fund Balance, Beginning 4,621,759 4,621,759 -
Fund Balance, Ending 4,294,532 $ 5,816,83 $ 8 $ 1,522,306 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure W Special Revenue Fund
Year Ended June 30, 2024
162
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ -$
Investment Income 70 404 334
Total Revenues 70 404 334

EXPENDITURES
Current:

General Government - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
over Expenditures 70 404 334

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 70 404 334
Fund Balance, Beginning 13,165 13,165 -
Fund Balance, Ending 13,235 $ 13,569 $ 334 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Charter PEG Special Revenue Fund
Year Ended June 30, 2024
163
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 3,750 $ 21,780 $ 18,030 $
Other Revenues - - -
Total Revenues 3,750 21,780 18,030

EXPENDITURES
Current:

Public Works 199,998 - 199,998
Total Expenditures 199,998 - 199,998
Excess (Deficiency) of Revenues
over Expenditures (196,248) 21,780 218,028

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (196,248) 21,780 218,028
Fund Balance, Beginning 705,700 705,700
Fund Balance, Ending 509,452 $ 727,480 $ 218,028 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Art in Public Spaces Special Revenue Fund Year Ended June 30, 2024
164
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ -$
Other Revenues 146,994 104,036 (42,958)
Total Revenues 146,994 104,036 (42,958)

EXPENDITURES
Current:

General Government - - -
Public Safety 19,060 5,673 13,387
Community Services 239,000 92,466 146,534
Community Development 30,000 67,614 (37,614)
Total Expenditures 288,060 165,753 122,307
Excess (Deficiency) of Revenues
over Expenditures (141,066) (61,717) 79,349

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (141,066) (61,717) 79,349
Fund Balance, Beginning 76,662 76,662 -
Fund Balance, Ending (64,404 $ ) $ 14,945 $ 79,349
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - West Covina Community Svcs. Found. Special Revenue Fund Year Ended June 30, 2024
165
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,946,156 $ 1,785,023 $ (161,133) $
Charges for Services - 2,615 2,615
Investment Income 49,830 157,760 107,930
Total Revenues 1,995,986 1,945,398 (50,588)

EXPENDITURES
Current:

Public Works 2,238,241 689,172 1,549,069
Community Services 512,342 367,739 144,603
Total Expenditures 2,750,583 1,056,911 1,693,672
Excess (Deficiency) of Revenues
over Expenditures (754,597) 888,487 1,643,084

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (754,597) 888,487 1,643,084 Fund Balance, Beginning 4,626,289 4,626,289 -
Fund Balance, Ending 3,871,692 $ 5,514,77 $ 6 $ 1,643,084 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure R Special Revenue Fund
Year Ended June 30, 2024
166
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 2,205,644 $ 2,015,670 $ (189,974) $
Investment Income 71,610 252,811 181,201
Total Revenues 2,277,254 2,268,481 (8,773)

EXPENDITURES
Current:

Public Works 4,651,679 268,722 4,382,957
Community Services - - -
Total Expenditures 4,651,679 268,722 4,382,957
Excess (Deficiency) of Revenues
over Expenditures (2,374,425) 1,999,759 4,374,184

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (2,374,425) 1,999,759 4,374,184 Fund Balance, Beginning 7,192,530 7,192,530 -
Fund Balance, Ending 4,818,10 $ 5 $ 9,192,289 $ 4,374,184 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure M Special Revenue Fund
Year Ended June 30, 2024
167
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ 1,092 $ 1,092 $
Revenue from Other Agencies - - -
Other Revenues - 42,616 42,616
Total Revenues - 43,708 43,708

EXPENDITURES
Current:

Public Safety 50,000 - 50,000
Community Services - - -
Total Expenditures 50,000 - 50,000
Excess (Deficiency) of Revenues
over Expenditures (50,000) 43,708 93,708

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (50,000) 43,708 93,708
Fund Balance, Beginning 7,719 7,719 -
Fund Balance, Ending (42,281 $ ) $ 51,427 $ 93,708
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure H Special Revenue Fund
Year Ended June 30, 2024
168
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ -$
Rental Income 301,900 126,936 (174,964)
Other Revenues 37,800 - (37,800)
Total Revenues 339,700 126,936 (212,764)

EXPENDITURES
Current:

Public Works - - -
Community Services 1,118,463 998,547 119,916
Total Expenditures 1,118,463 998,547 119,916
Excess (Deficiency) of Revenues
over Expenditures (778,763) (871,611) (92,848)

OTHER FINANCING SOURCES (USES)
Transfers In 908,263 871,611 (36,652)
Transfers Out - - -
Total Other Financing
Sources (Uses) 908,263 871,611 (36,652)
Net Change in Fund Balances 129,500 (129,500) -
Fund Balance, Beginning - - -
Fund Balance, Ending $ 129,500 $ (129,500 - $ )
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Sportsplex Special Revenue Fund
Year Ended June 30, 2024
169
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ - $
Charges for Services - - -
Total Revenues - - -

EXPENDITURES
Current:

General Government 769,332 - 769,332
Public Works 6,818,608 631,521 6,187,087
Total Expenditures 7,587,940 631,521 6,956,419
Excess (Deficiency) of Revenues
over Expenditures (7,587,940) (631,521) 6,956,419

OTHER FINANCING SOURCES (USES)
Transfers In 1,501,600 1,751,600 (250,000)
Transfers Out - - -
Total Other Financing
Sources (Uses) 1,751,600 1,501,600 (250,000)
Net Change in Fund Balances (5,836,340) 870,079 6,706,419 Fund Balance, Beginning 7,617,849 7,617,849 -
Fund Balance, Ending 1,781,50 $ 9 $ 8,487,928 $ 6,706,419 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - City Capital Projects Fund
Year Ended June 30, 2024
170
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,100 $ - $ (1,100) $
Investment Income 2,920 7,352 4,432
Total Revenues 4,020 7,352 3,332

EXPENDITURES
Current:

Public Works 20,000 2,900 17,100
Total Expenditures 20,000 2,900 17,100
Excess (Deficiency) of Revenues
over Expenditures (15,980) 4,452 20,432

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (15,980) 4,452 20,432
Fund Balance, Beginning 240,773 240,773 -
Fund Balance, Ending 224,793 $ 245,225 $ 20,432 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Construction Tax Capital Projects Fund Year Ended June 30, 2024
171
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Revenue from Other Agencies 310,000 $ 309,848 $ (152) $ Other Revenues 67,100 90,150 23,050
Total Revenues 377,100 399,998 22,898

EXPENDITURES
Current:

General Government 603,835 306,297 297,538
Total Expenditures 603,835 306,297 297,538
Excess (Deficiency) of Revenues
over Expenditures (226,735) 93,701 320,436

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (226,735) 93,701 320,436
Fund Balance, Beginning 448,495 448,495 -
Fund Balance, Ending 221,760 $ 542,196 $ 320,436 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Information Technology Capital Projects Fund Year Ended June 30, 2024
172
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ - $
Other Revenues 122,100 84,500 (37,600)
Total Revenues 122,100 84,500 (37,600)

EXPENDITURES
Current:

Public Safety 70,000 32,803 37,197
Public Works 209,728 - 209,728
Total Expenditures 279,728 32,803 246,925
Excess (Deficiency) of Revenues
over Expenditures (157,628) 51,697 209,325

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (157,628) 51,697 209,325
Fund Balance, Beginning 634,137 634,137 -
Fund Balance, Ending 476,509 $ 685,834 $ 209,325 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Development Impact Fees Capital Projects Fund Year Ended June 30, 2024
173
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 37,170 $ 223,495 $ 186,325 $
Other Revenues 613,303 427,050 (186,253)
Total Revenues 650,473 650,545 72

EXPENDITURES
Current:

Public Works 1,404,795 15,471 1,389,324
Community Services - - -
Total Expenditures 1,404,795 15,471 1,389,324
Excess (Deficiency) of Revenues
over Expenditures (754,322) 635,074 1,389,396

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (754,322) 635,074 1,389,396 Fund Balance, Beginning 6,907,402 6,907,402 -
Fund Balance, Ending 6,153,08 $ 0 $ 7,542,476 $ 1,389,396 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Park Development Capital Projects Fund Year Ended June 30, 2024
174

INTERNAL SERVICE FUNDS
175
City of West Covina
Internal Service Funds
Year Ended June 30, 2024

INTERNAL SERVICE FUNDS
The internal service funds are used to account for goods and services provided by one City department to other City departments on a cost reimbursement basis.

Fleet Management
This fund provides maintenance on materials and supplies for City vehicles and other gasoline or diesel powered equipment.

Self-Insurance
This fund accounts for the use of funds that are charged to departments for the administration and payment of claims under the City’s self-insured general liability and workers’ compensation programs.

Retiree Health Savings Plan
This fund accounts for the set aside lump sum benefits for retiring employees.

Other Post Employment Benefits (OPEB)
This fund is used to allocate OPEB costs for employees.

Vehicle Replacement
This fund provides for replacement of City vehicles.
176
City of West Covina
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan OPEB Replacement Totals ASSETS
Current Assets:

Cash and Investments $ 233,946 $ 11,853,711 $ 358,327 $ 1,841,838 $ 580,749 $ 14,868,571 Restricted Cash and Investments 1,213,703 - - - 1,213,703 - Accounts Receivable 44,074 1,241,932 - - 20,000 1,306,006 Inventories 61,141 - - - - 61,141
Total Current Assets 339,161 14,309,346 358,327 1,841,838 600,749 17,449,421 Noncurrent Assets:

Capital Assets, Depreciable, Net 133,659 - - 648,329 - 781,988 Total Noncurrent Assets 133,659 - - 648,329 - 781,988
Total Assets 472,820 14,309,346 358,327 1,841,838 1,249,078 18,231,409

LIABILITIES
Current Liabilities:

Accounts Payable 103,998 554,986 - - 658,984 -
Other Accrued Liabilities 1,052 - - - - 1,052
Current Portion of Long-Term Liabilities:

Compensated Absences 7,692 - - - - 7,692
Claims Payable 7,578,180 - - - 7,578,180 -
Total Current Liabilities 112,742 8,133,166 - - 8,245,908 - Noncurrent Liabilities:

Claims Payable 16,910,124 - - - 16,910,124 -
Total Noncurrent Liabilities 16,910,124 - - - 16,910,124 - Total Liabilities 112,742 25,043,290 - - 25,156,032 -

NET POSITION
Net Investment in Capital Assets 133,659 - - 648,329 - 781,988 Unrestricted 226,419 (10,733,944) 358,327 1,841,838 600,749 (7,706,611) Total Net Position $ 360,078 $ (10,733,944) $ 358,327 $ 1,841,838 $ 1,249,078 $ (6,924,623) 177
City of West Covina
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2024
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan OPEB Replacement Totals

OPERATING REVENUES
Charges for Services $ 1,551,498 $ 4,976,563 $ - $ - $ 6,528,061 - $ Other Revenues 74,118 1,573,991 - - 51,340 1,699,449
Total Operating Revenues 1,625,616 6,550,554 - - 51,340 8,227,510

OPERATING EXPENSES
Personnel Services 170,065 - - - 170,065 -
Cost of Sales, Services and Operations 1,490,655 383 - - 1,491,038 - Depreciation 33,289 - - 193,628 - 226,917
Insurance and Claims Paid 14,900,409 - - - 14,900,409 - Total Operating Expenses 1,694,009 14,900,792 - 193,628 - 16,788,429 Operating Income (Loss) (68,393) (8,350,238) - (142,288) - (8,560,919)

NONOPERATING REVENUES (EXPENSES)
Interest Income - - 10,669 54,838 7,816 73,323
Gain/(Loss) on Disposal of Capital Assets - - - - - -
Total Nonoperating Revenues (Expenses) - - 10,669 54,838 7,816 73,323 Income (Loss) Before Operating Transfers (68,393) (8,350,238) 10,669 54,838 (134,472) (8,487,596) Transfers In 3,937,400 - - 375,400 - 4,312,800
Transfers Out - - - - - -
Change in Net Position (68,393) (4,412,838) 10,669 54,838 240,928 (4,174,796) Net Position - Beginning of Year 428,471 (6,321,106) 347,658 1,787,000 1,008,150 (2,749,827) Net Position - End of Year $ 360,078 $ (10,733,944) $ 358,327 $ 1,841,838 $ 1,249,078 $ (6,924,623) 178
City of West Covina
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2024
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan OPEB Replacement Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments $ 5,309,672 1,602,247 $ - $ - $ 31,340 $ 6,943,259 $ Cash Paid to Suppliers for Goods and Services (9,089,711) (1,521,213) - - (51,547) (10,662,471) Cash Paid to Employees for Services - (168,883) - - - (168,883) Net Cash from Operating Activities (87,849) (3,780,039) - - (20,207) (3,888,095)

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Cash Received from Other Funds 3,937,400 - - - 375,400 4,312,800 Net Cash from Noncapital and
Related Financing Activities - 3,937,400 - - 375,400 4,312,800

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (35,304) - - (280,030) - (315,334) Net Cash from Capital and
Related Financing Activities (35,304) - - (280,030) - (315,334)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - - 10,669 54,838 7,816 73,323
Net Cash from Investing Activities - - 10,669 54,838 7,816 73,323 Net Increase (Decrease) in Cash and Cash Equivalents (123,153) 157,361 10,669 54,838 82,979 182,694 Cash and Cash Equivalents, Beginning of the Year 357,099 12,910,053 347,658 1,787,000 497,770 15,899,580 Cash and Cash Equivalents, End of the Year $ 233,946 $ 13,067,414 $ 358,327 $ 1,841,838 $ 580,749 $ 16,082,274 Reconciliation of Operating Income (Loss) to
Net Cash from Operating Activities:

Operating Income (Loss) $ (68,393) $ (8,350,238) $ - $ - $ (142,288) $ (8,560,919) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 33,289 - - 193,628 - 226,917
Miscellaneous Income - - - - - -
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (1,240,882) (23,369) - - (20,000) (1,284,251) (Increase) Decrease in Inventory and Prepaid Items 10,347 1,841,753 - - 1,852,100 - Increase (Decrease) in Accounts Payable (7,595) (40,905) - - (51,547) (100,047) Increase (Decrease) in Accrued Liabilities - 654 - - - 654 Increase (Decrease) in Compensated Absences Payable - 528 - - - 528 Increase (Decrease) in Claims Payable 3,976,923 - - - - 3,976,923 Net Cash from Operating Activities $ (3,780,039) (87,849) $ - $ - $ (20,207) $ (3,888,095) $ 179
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180

STATISTICAL SECTION
181
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182
City of West Covina
Description of Statistical Section Contents
June 30, 2024
This part of the City of West Covina's Annual Comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

Contents: Pages

Financial Trends these schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time

184

Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax

198

Debt Capacity these schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future

206

Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place

214

Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs

216
183

2015 2016 2017 2018
Governmental activities:

Net investment in capital assets 144,215,248 $ 148,989,212 $ 153,784,463 $ 153,940,332 $ Restricted 48,793,821 56,902,504 50,717,656 51,130,936
Unrestricted (129,152,694) (138,162,202) (144,659,629) (201,951,785) Total governmental activities net pension 63,856,375 $ 67,729,514 $ 59,842,490 $ 3,119,483 $ Business-type activities:

Net investment in capital assets - $ - $ - $ - $
Restricted - - - -
Unrestricted 188,045 (135,676) (252,336) (275,010)
Total business-type activities net pension 188,045 $ (135,676) $ (252,336) $ (275,010) $ Primary government:

Net investment in capital assets 144,215,248 $ 148,989,212 $ 153,784,463 $ 153,940,332 $ Restricted 48,793,821 56,902,504 50,717,656 51,130,936
Unrestricted (128,964,649) (138,297,878) (144,911,965) (202,226,795) Total primary government net pension 64,044,420 $ 67,593,838 $ 59,590,154 $ 2,844,473 $ Source: City of West Covina Finance Department

CITY OF WEST COVINA
(accrual basis of accounting)
Last Ten Fiscal Years
Net Position by Component
Fiscal Year
184
(continued)
2019 2020 2021 2022 2023 2024
$ 140,572,511 147,204,908 $ 139,507,563 $ 152,889,130 $ 152,367,256 $ 149,162,351 $ 65,969,665 57,782,735 89,226,135 98,381,004 109,315,672 113,696,248 (225,184,697) (207,212,078) (255,200,972) (240,284,642) (255,282,394) (249,361,966) $ (18,642,521) (2,224,435) $ (26,467,274) $ 10,985,492 $ 6,400,534 $ 13,496,633 $ $ - - $ - $ - $ - $ - $
- - - - - -
(244,119) (326,385) 38,329 235,307 241,833 252,092
$ (244,119) (326,385) $ 38,329 $ 235,307 $ 241,833 $ 252,092 $ $ 140,572,511 147,204,908 $ 139,507,563 $ 152,889,130 $ 152,367,256 $ 149,162,351 $ 65,969,665 57,782,735 89,226,135 98,381,004 109,315,672 113,696,248 (225,428,816) (207,538,463) (255,162,643) (240,049,335) (255,040,561) (249,109,874) $ (18,886,640) (2,550,820) $ (26,428,945) $ 11,220,799 $ 6,642,367 $ 13,748,725 $ Fiscal Year
185
2015 2016 2017 2018
Expenses:

Governmental activities:

General government $ 5,676,067 $ 4,963,302 $ 5,775,173 $ 7,523,129 Public safety 49,813,447 48,410,511 56,169,907 67,734,047 Public works 20,586,770 20,259,279 21,243,019 21,161,586 Community services 7,035,872 7,368,492 7,926,410 8,926,070 Community development 766,886 753,721 2,190,319 1,618,181 Interest on long-term debt 1,353,156 1,572,645 1,575,724 1,515,826 Total governmental activities expenses 85,232,198 83,327,950 94,880,552 108,478,839 Business-type activities:

Computer enterprise 1,427,789 1,638,573 1,575,066 1,305,426 Total business-type activities expenses 1,427,789 1,638,573 1,575,066 1,305,426 Total primary government expenses 86,659,987 84,966,523 96,455,618 109,784,265 Program revenues:

Governmental activities:

Charges for services:

General government 885,123 400,051 546,626 814,465
Public safety 2,825,831 3,170,579 3,201,495 3,610,467
Public works 8,278,038 8,271,744 7,714,148 8,967,472
Community services 1,275,278 1,365,482 1,491,858 2,110,943 Community development 502,621 425,013 416,014 264,959
Operating grants and contributions 12,405,742 13,317,378 10,955,031 10,285,701 Capital grants and contributions 2,224,864 1,004,826 445,980 151,966 Total governmental activities
program revenues 28,397,497 27,955,073 24,771,152 26,205,973 Business-type activities:

Charges for services:

Computer enterprise 1,655,134 1,413,114 1,274,318 1,199,162 Total business-type activities
program revenues 1,655,134 1,413,114 1,274,318 1,199,162 Total primary government
program revenues 30,052,631 29,368,187 26,045,470 27,405,135 Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
186
(continued)
2019 2020 2021 2022 2023 2024
$ 7,781,252 7,515,920 $ 18,929,254 $ 3,700,172 $ 19,222,882 $ 20,662,676 $ 72,653,866 58,057,784 62,479,977 49,887,239 66,098,443 65,336,608 23,649,892 21,625,190 17,212,496 13,508,312 24,203,764 20,428,578 9,418,860 9,280,450 7,675,178 12,587,100 10,247,116 11,905,417 1,394,131 795,685 1,568,283 1,238,687 1,446,667 1,716,136 1,874,899 1,680,335 8,354,304 9,033,455 8,792,569 8,655,994 116,772,900 98,955,364 116,219,492 89,954,965 130,011,441 128,705,409 1,230,639 1,263,693 475,672 719,911 680,235 682,735
1,230,639 1,263,693 475,672 719,911 680,235 682,735
118,003,539 100,219,057 116,695,164 90,674,876 130,691,676 129,388,144 369,796 829,295 312,112 617,087 1,192,555 777,588
4,304,075 3,839,103 3,718,158 4,467,009 5,424,121 6,677,549 2,034,963 9,156,370 4,458,831 8,415,913 11,104,690 8,384,949 2,438,156 1,903,119 697,351 1,620,427 1,957,418 1,549,429 465,097 6,780,115 - - - -
12,097,219 19,989,920 21,764,524 29,598,365 18,983,157 22,201,169 360,872 582,023 10,621,147 17,666,351 15,354,938 15,149,924 28,651,075 36,499,048 41,572,123 62,385,152 54,016,879 54,740,608 1,099,028 1,249,195 758,120 916,458 686,731 692,994
1,099,028 1,249,195 758,120 916,458 686,731 692,994
29,750,103 37,748,243 42,330,243 63,301,610 54,703,610 55,433,602 Fiscal Year
187
2015 2016 2017 2018
Net revenues (expenses):

Governmental activities $ (56,834,701) $ (55,372,877) $ (70,109,400) $ (82,272,866) Business-type activities 227,345 (225,459) (300,748) (106,264) net primary government
revenues (expenses) (56,607,356) (55,598,336) (70,410,148) (82,379,130) General revenues and other changes
in net position:

Governmental activities:

Taxes:

Property taxes 21,156,596 22,352,163 23,994,740 25,392,860 Sales tax 15,096,101 17,228,237 16,503,563 17,449,827
Franchise tax 3,635,092 3,540,011 3,698,184 4,011,817
Other taxes 7,433,106 6,485,394 6,725,309 7,692,437
Investment income 660,157 (566,064) 4,452,938 559,164
Other general revenues 6,999,034 4,236,920 6,847,642 9,256,591 Transfers 101,775 101,775 - -
Extraordinary gain (loss) 9,789,266 - - -
Total governmental activities 55,081,861 63,167,702 62,222,376 64,362,696 Business-type activities:

Investment income 1,553 3,513 2,070 884
Other revenues - - 182,018 82,706
Transfers (101,775) (101,775) - -
Total business-type activities (100,222) (98,262) 184,088 83,590 Total primary government 54,981,639 63,069,440 62,406,464 64,446,286 Changes in net position:

Governmental activities (1,752,840) 7,794,825 (7,887,024) (17,910,170) Business-type activities 127,123 (323,721) (116,660) (22,674) Total primary government
change in net position $ (1,625,717) $ 7,471,104 $ (8,003,684) $ (17,932,844) Source: City of West Covina Finance Department
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year

CITY OF WEST COVINA
188
(continued)
2019 2020 2021 2022 2023 2024
$ (70,304,289) $ (80,273,852) $ (74,647,369) $ (27,569,813) $ (75,994,562) $ (73,964,801) (164,665) 18,556 282,448 196,547 6,496 10,259
(70,468,954) (80,255,296) (74,364,921) (27,373,266) (75,988,066) (73,954,542) 26,365,067 27,422,706 30,108,110 31,348,677 33,822,147 35,055,298 17,464,609 17,033,647 20,858,803 23,101,668 23,526,119 26,575,421 4,207,765 4,445,101 4,644,360 4,806,348 5,237,769 5,052,041 9,158,794 5,026,703 4,571,270 4,721,569 4,815,955 4,832,080 2,016,573 2,682,794 223,485 (1,082,667) 2,019,179 4,254,045 5,747,563 7,244,815 5,520,479 2,126,984 1,988,435 2,431,663 - - - - - -
- - - - - -
64,960,371 63,855,766 65,926,507 65,022,579 71,409,604 78,200,548 1,083 - - - - -
112,207 63,710 - - - -
- - - - - -
113,290 63,710 - - - -
65,073,661 63,919,476 65,926,507 65,022,579 71,409,604 78,200,548 (5,343,918) (16,418,086) (8,720,862) 37,452,766 (4,584,958) 4,235,747 (51,375) 82,266 282,448 196,547 6,496 10,259
$ (5,395,293) $ (16,335,820) $ (8,438,414) $ 37,649,313 $ (4,578,462) $ 4,246,006 Fiscal Year
189
2015 2016 2017 2018
Expenses:

General government $ 5,676,067 $ 4,963,302 $ 5,775,173 $ 7,523,129 Public safety 49,813,447 48,410,511 56,169,907 67,734,047 Public works 20,586,770 20,259,279 21,243,019 21,161,586 Community services 7,035,872 7,368,492 7,926,410 8,926,070 Community development 766,886 753,721 2,190,319 1,618,181 Interest on long-term debt 1,353,156 1,572,645 1,575,724 1,515,826 Total expenses 85,232,198 83,327,950 94,880,552 108,478,839 Program revenues:

Charges for services:

General government 885,123 400,051 546,626 814,465
Public safety 2,825,831 3,170,579 3,201,495 3,610,467
Public works 8,278,038 8,271,744 7,714,148 8,967,472
Community services 1,275,278 1,365,482 1,491,858 2,110,943 Community development 502,621 425,013 416,014 264,959
Operating grants and contributions 12,405,742 13,317,378 10,955,031 10,285,701 Capital grants and contributions 2,224,864 1,004,826 445,980 151,966 Total program revenues 28,397,497 27,955,073 24,771,152 26,205,973 Net program revenues (expenses) (56,834,701) (55,372,877) (70,109,400) (82,272,866) General revenues and other changes
in net position:

Taxes:

Property taxes 21,156,596 22,352,163 23,994,740 25,392,860 Sales tax 15,096,101 17,228,237 16,503,563 17,449,827
Franchise tax 3,635,092 3,540,011 3,698,184 4,011,817
Other taxes 7,433,106 6,485,394 6,725,309 7,692,437
Motor vehicle in lieu, unrestricted - - - -
Investment income 660,157 (566,064) 4,452,938 559,164
Other general revenues 6,999,034 4,236,920 6,847,642 9,256,591 Transfers 101,775 101,775 - -
Extraordinary gain (loss) 9,789,266 - - -
Total governmental revenues
and other changes 55,081,861 63,167,702 62,222,376 64,362,696 Changes in net position $ (1,752,840) $ 7,794,825 $ (7,887,024) $ (17,910,170) Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Net Position
Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
190
(continued)
2019 2020 2021 2022 2023 2024
$ 7,781,252 7,515,920 $ 18,929,254 $ 3,700,172 $ 19,222,882 $ 20,662,676 $ 72,653,866 58,057,784 62,479,977 49,887,239 66,098,443 65,336,608 23,649,892 21,625,190 17,212,496 13,508,312 24,203,764 20,428,578 9,418,860 9,280,450 7,675,178 12,587,100 10,247,116 11,905,417 1,394,131 795,685 1,568,283 1,238,687 1,446,667 1,716,136 1,874,899 1,680,335 8,354,304 9,033,455 8,792,569 8,655,994 116,772,900 98,955,364 116,219,492 89,954,965 130,011,441 128,705,409 369,796 829,295 312,112 617,087 1,192,555 777,588
4,304,075 3,839,103 3,718,158 4,467,009 5,424,121 6,677,549 2,034,963 9,156,370 4,458,831 8,415,913 11,104,690 8,384,949 2,438,156 1,903,119 697,351 1,620,427 1,957,418 1,549,429 6,780,115 465,097 - - - -
19,989,920 12,097,219 21,764,524 29,598,365 18,983,157 22,201,169 582,023 360,872 10,621,147 17,666,351 15,354,938 15,149,924 28,651,075 36,499,048 41,572,123 62,385,152 54,016,879 54,740,608 (70,304,289) (80,273,852) (74,647,369) (27,569,813) (75,994,562) (73,964,801) 26,365,067 27,422,706 30,108,110 31,348,677 33,822,147 35,055,298 17,464,609 17,033,647 20,858,803 23,101,668 23,526,119 26,575,421 4,207,765 4,445,101 4,644,360 4,806,348 5,237,769 5,052,041 9,158,794 5,026,703 4,571,270 4,721,569 4,815,955 4,832,080 - - - - - -
2,016,573 2,682,794 223,485 (1,082,667) 2,019,179 4,254,045 5,747,563 7,244,815 5,520,479 2,126,984 1,988,435 2,431,663 - - - - - -
- - - - - -
64,960,371 63,855,766 65,926,507 65,022,579 71,409,604 78,200,548 $ (5,343,918) $ (16,418,086) $ (8,720,862) $ 37,452,766 $ (4,584,958) $ 4,235,747 Fiscal Year
191
2015 2016 2017 2018
Expenses:

Computer Enterprise $ 1,427,789 $ 1,638,573 $ 1,575,066 $ 1,305,426 Total expenses 1,427,789 1,638,573 1,575,066 1,305,426
Program revenues:

Charges for services:

Computer Enterprise 1,655,134 1,413,114 1,274,318 1,199,162 Total program revenues 1,655,134 1,413,114 1,274,318 1,199,162 Net revenues (expenses) 227,345 (225,459) (300,748) (106,264) General revenues and other changes
in net position:

Investment income 1,553 3,513 2,070 884
Other revenues - - 182,018 82,706
Transfers (101,775) (101,775) - -
Total general revenues
and other changes (100,222) (98,262) 184,088 83,590
Changes in net position $ 127,123 $ (323,721) $ (116,660) $ (22,674) Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Net Position
Business-Type Activities
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
192
(continued)
2019 2020 2021 2022 2023 2024
$ 1,230,639 1,263,693 $ 475,672 $ $ 719,911 $ 680,235 $ 682,735 1, 1,263,693 475, 230,639 672 719,911 680,235 682,735
1, 1,099,028 758, 249,195 120 916,458 686,731 692,994
1, 1,099,028 758, 249,195 916,458.00 120.00 686,731.00 692,994.00 18,556 (164,665) 196,547.00 282,448.00 6,496.00 10, 259.00 - 1,083 - - - -
63,710 112,207 - - - -
- - - - - -
113,290 63,710 - - - -
$ (51,375) $ 82,266 $ 282,448 $ 196,547 $ 6,496 $ 10,259 Fiscal Year
193
2015 2016 2017 2018
General Fund:

Nonspendable $ 6,483,924 $ 7,129,779 $ 6,982,268 $ 9,952,978 Restricted - - - -
Assigned - - - 320,200
Unassigned 20,531,695 15,032,610 14,119,078 11,979,653
Total general fund $ 27,015,619 $ 22,162,389 $ 21,101,346 $ 22,252,831 All other governmental funds:

Nonspendable $ 151,923 $ 5,277,203 $ 4,980,450 $ 110,833 Restricted 59,918,077 51,467,448 45,082,696 49,600,866
Assigned 4,930,693 5,065,065 2,820,665 2,004,895
Unassigned (438,708) (531,412) (1,100,860) (710,218)
Total all other governmental funds $ 64,561,985 $ 61,278,304 $ 51,782,951 $ 51,006,376 Source: City of West Covina Finance Department
Fiscal Year

CITY OF WEST COVINA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
194
(continued)
2019 2020 2021 2022 2023 2024
$ 7,086,958 8,976,583 $ 4,009,651 $ 3,380,136 $ 3,358,665 $ 3,356,089 $ - 7,650 9,440 8,287 16,069 17,880
320,200 - - - - -
9,884,913 12,580,716 21,468,986 20,770,457 17,654,008 18,484,968 $ 19,181,696 $ 19,675,324 $ 25,488,077 $ 24,158,880 $ 21,028,742 $ 21,858,937 $ 99,167 $ 82,420 $ - $ 11,989 $ 90,943 $ 107,651
57,840,755 64,044,695 92,198,163 100,732,082 107,980,761 119,703,559 1,107,138 1,786,815 9,687,492 6,601,977 7,617,849 8,487,928 (692,305) (1,158,958) (228,169) (164,865) (22,661) (24,225) $ 58,354,755 $ 64,754,972 $ 101,657,486 $ 107,181,183 $ 115,666,892 $ 128,274,913 Fiscal Year
195
2015 2016 2017 2018
Revenues:

Taxes $ 50,918,823 $ 54,237,649 $ 55,502,969 $ 59,255,716 Special assessments 5,595,338 5,550,657 5,318,497 6,077,861 Licenses and permits 1,419,457 1,156,613 1,037,389 1,089,850 Fines and forfeitures 959,606 796,989 894,618 1,290,187 Investment income 679,844 (570,132) 4,448,607 551,948
Rental income 406,350 529,833 604,817 649,968
Intergovernmental 10,769,196 11,218,711 10,193,278 7,920,178 Charges for services 6,803,615 7,731,236 7,359,139 8,681,704 Repayment of notes and loans - - - -
Other 5,490,327 1,487,103 2,129,531 4,229,895
Total revenues 83,042,556 82,138,659 87,488,845 89,747,307 Expenditures
Current:

General government 5,757,334 5,103,814 6,214,682 5,700,461 Public safety 45,906,138 50,962,883 54,480,972 53,087,630 Public works 13,724,417 15,509,267 15,328,717 17,635,489 Community services 5,816,443 6,864,180 10,824,395 6,975,178 Community development 761,896 898,714 2,198,881 1,182,255 Debt service:

Principal retirement 1,866,947 2,027,461 7,931,202 1,958,918 Interest and fiscal charges 1,360,370 1,574,753 1,566,392 1,501,956 Cost of issuance - - - -
Developer agreement payments - - - -
Total expenditures 75,193,545 82,941,072 98,545,241 88,041,887 Excess (deficiency) of revenues
over (under) expenditures 7,849,011 (802,413) (11,056,396) 1,705,420 Other financing sources (uses):

Transfers in 3,201,793 4,831,038 5,643,232 3,902,056
Transfers out (3,100,018) (10,812,296) (5,643,232) (5,232,566) Acquisition under capital leases 2,568,446 - 500,000 -
Issuance of bonds - - - -
Premium of refunding bonds issued - - - -
Payment to refunded bond escrow agent - - - -
Extraordinary gain (loss) 11,578,351 - - -
Total other financing sources (uses) 11,680,126 (3,412,812) 500,000 (1,330,510) Special Item
Payment towards UAL - - - -
Net change in fund balances $ 19,529,137 $ (4,215,225) $ (10,556,396) $ 374,910 Debt service as a percentage of
noncapital expenditures 4.92% 4.70% 10.29% 4.18%
Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Fund Balances of Governmenta
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
196
(continued)
2019 2020 2021 2022 2023 2024
$ 62,588,256 62,477,442 $ 72,496,610 $ 77,294,614 $ 84,173,323 $ 87,368,883 $ 6,490,254 6,347,182 6,837,731 7,040,726 7,001,653 7,205,542 1,491,744 1,140,622 1,528,117 2,780,660 4,667,301 2,279,923 921,872 1,318,333 380,169 508,463 902,570 911,167
2,677,045 2,008,971 (18,511) (1,311,234) 2,879,053 6,072,172 700,455 647,749 952,185 1,459,129 1,194,252 1,171,254
15,386,915 12,581,261 11,623,792 20,743,307 12,041,789 14,618,397 7,690,819 7,473,923 6,376,218 10,011,122 8,011,824 8,629,643 - - - - - -
3,783,990 1,142,659 2,785,758 7,140,273 4,922,484 3,790,171 101,731,350 95,138,142 102,962,069 125,667,060 125,794,249 132,047,152 6,488,092 6,828,020 6,910,013 5,047,088 7,252,624 9,534,513 58,857,571 58,205,797 60,290,745 59,843,680 57,073,164 58,232,370 17,262,224 14,800,936 15,356,778 28,481,999 25,391,260 18,706,486 7,290,775 7,263,052 6,172,738 11,085,748 8,744,274 10,506,587 1,086,128 1,214,558 1,568,283 1,238,687 1,446,667 1,716,136 13,353,918 1,833,918 2,428,918 5,869,299 6,440,885 6,695,077 1,691,316 1,932,807 5,419,621 9,063,717 8,916,689 8,751,132 389,726 1,083,165 - - - -
- - - - - -
103,646,616 94,852,222 99,230,261 120,630,218 115,265,563 114,142,301 (8,508,474) 6,879,128 3,731,808 5,036,842 10,528,686 17,904,851 149,121 1,494,913 197,353,567 19,667,127 16,881,947 16,072,308 (9,121) (1,676,955) (201,320,249) (20,509,469) (22,055,062) (20,385,108) 196759 3,900,000 - - - -
24,165,000 210,697,048 - - - -
1,380,718 - - - - -
(12,900,000) - - - - -
- - - - - -
12,785,718 14,717 210,630,366 (842,342) (5,173,115) (4,312,800) - (172,543,016) - - - -
$ 4,277,244 $ 6,893,845 $ 41,819,158 $ 4,194,500 $ 5,355,571 $ 13,592,051

15.08% 3.97% 7.91% 15.38% 13.64% 14.22%
Fiscal Year
197
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Non-Unitary Unsecured Exemptions Value
2015 7,116,733 - 12,346 ( 7, 94,084) 034,995
2016 7,458,200 - 14,738 ( 7, 95,915) 377,023
2017 7,829,861 - 11,212 ( 7, 100,253) 740,820
2018 8,229,924 - 9,185 ( 8, 84,900) 154,209
2019 8,718,033 - 10,356 ( 8, 101,379) 627,010
2020 9,082,038 - 11,724 ( 9, 79,629) 014,133
2021 9,458,367 - 11,927 ( 9, 119,220) 351,074
2022 9,768,205 - 11,452 ( 9, 111,904) 667,753
2023 10,256,615 - 17,714 ( 10, 171,514) 102,815
2024 11,187,674 19,131 ( 11, 180,090) 026,715
NOTE:

Source: HdL Coren & Cone, Los Angeles Assessor 2014 - 2021/22 Combined Tax Rolls City

CITY OF WEST COVINA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
(in thousands)
198
(continued)
City and SA
Taxable Total Taxable Total
Less: Assessed Assessed Direct Tax
Secured Unsecured Exemptions Value Value Rate
161, 2,566,170 ( 710 2, 184,907) 9, 542,973 14. 577,968 116% 162, 2,795,635 ( 488 2, 189,554) 10, 768,569 14.138% 145,592 165, 3,028,206 ( 375 3, 170,529) 10, 023,052 14.165% 763,872 163, 3,103,316 ( 326 3, 154,330) 11, 112,312 14.109% 266,521 167, 3,305,249 ( 442 3, 168,062) 11, 304,629 14.221% 931,639 169, 3,483,295 ( 859 3, 195,530) 12, 457,624 14.236% 471,757 168, 3,604,156 ( 578 3, 222,612) 12, 550,122 14.262% 901,196 167, 3,688,744 ( 649 3, 209,821) 13, 646,572 14.280% 314,325 174, 3,836,294 ( 355 3, 321,127) 13, 689,522 14.280% 792,337 184, 4,143,198 ( 816 426,038) 3,901,977 14,928,692 14.280% Successor Agency (SA) of the former Community Development Commission (CDC) 199
2015 2016 2017 2018
Basic Levy1 1.00000 1.00000 1.00000 1.00000
Baldwin Park Unified 0.16519 0.16288 0.10510 0.13039
Bassett Unified School District 0.11539 0.15771 0.16781 0.17443 Covina Valley Unified School District 0.11426 0.11062 0.12581 0.14205 Hacienda-La Puente Unified 0.06432 0.06394 0.06600 0.10531 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Mt. San Antonio College 0.02129 0.02154 0.02400 0.02371 Rowland Heights Unified 0.14313 0.12426 0.12444 0.11841 Rowland Unified 0.00000 0.00000 0.00000 0.00000
Walnut Valley Unified 0.11510 0.09285 0.06601 0.07388
West Covina Municipal Maint. Dist. 0.18310 0.18310 0.18310 0.18310 West Covina Unified 0.05412 0.04205 0.04914 0.09514
Total Direct & Overlapping2
Tax Rates 1.97941 1.96245 1.91492 2.04992
City Share of 1% Levy Per Prop 133 0.13820 0.13820 0.13820 0.13820 Redevelopment Rate4 N/A N/A N/A N/A
Total Tax Rate5 0.14116 0.14138 0.14165 0.14109
Source: Los Angeles County Assessor 2011/12 - 2020/21 Tax Rate Table

CITY OF WEST COVINA
(rate per $100 of assessed value)
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates
Fiscal Year
4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied 5 Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft taxes.

Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges 1 In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes 2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlappping rates 3 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. 200
(continued)
2019 2020 2021 2022 2023 2024

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.12402 0.13032 0.19256 0.18029 0.17544 0.12783

0.16349 0.14196 0.14705 0.13911 0.13876 0.17596

0.13976 0.13521 0.12658 0.12995 0.12612 0.12325

0.10706 0.08252 0.08261 0.08511 0.08491 0.10215

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.02435 0.04781 0.04459 0.04608 0.04267 0.03806

0.11861 0.10760 0.10905 0.00000 0.00000 0.00000

0.00000 0.00000 0.00000 0.11128 0.10909 0.11623

0.10582 0.09538 0.09893 0.10066 0.10118 0.10694

0.18310 0.18310 0.18480 0.18480 0.18480 0.18480

0.09795 0.08192 0.09980 0.07968 0.09317 0.06328

2.06766 2.00932 2.08947 2.06046 2.05964 2.04201

0.13820 0.13820 0.13820 0.13820 0.13820 0.13820

N/A N/A N/A N/A N/A N/A

0.14221 0.14236 0.14262 0.14280 0.14295 0.14311
Fiscal Year
201
Percent of Percent of
Total City Taxable Total City
Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Plaza West Covina LLC 290,911,773 $ 1 1.95% 220,306,658 $ 2.30% 1 GREF Eastland Center LP 198,061,954 1.33% 105,368,555 2 1.10% 2 Colony at the Lakes 185,495,060 1.24% 3
Walnut Ridge Apartments LP 104,239,682 0.70% 55,827,608 4 0.58% 3 CLPF 624 South Glendora Avenue LP 99,670,269 0.67% 5
CLPF Verandas LP 93,927,698 0.63% 6
Envision WC MB RE LLC 87,070,867 0.58% 7
Twelve 31 Partners LP 81,957,000 0.55% 8
TPA Nasch LLC 62,204,549 0.42% 9
Go West Covina Owners LLC 59,619,000 10 0.40%
Barranca Medici LP 52,402,350 0.55% 4
Gateway Crescent LLC 46,800,000 0.49% 5
Eastland Tower Partnership 46,100,000 0.48% 6
Glendora Ave Properties LLC 46,088,474 0.48% 7
TPA of Nasch LLC 44,824,901 0.47% 8
Hassen Real Estate Partnership 36,336,233 0.38% 9
KOR BAM Sunset Plaza LLC 32,287,266 0.34% 10
Totals $1,263,157,852 8.46% $ 686,342,045 7.17%
Twelve 31 Partners LP
Citrus Gardens Apartments LP
Non UnitaryTax Roll
Principal Property Taxpayers
2024 2015
Current Year and Nine Years Ago

CITY OF WEST COVINA
Source: HdL Coren & Cone; Los Angeles County Assessor 2013-14 and 2022-23 Combined Tax Rolls and the 202
Page intentionally left blank.
203
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2015 9,702,185 9,491,592 97.83% 34,965 9,526,557 98.19% 2016 10,173,156 9,881,520 97.13% 88,647 9,970,167 98.00% 2017 10,671,800 10,440,321 97.83% 109,928 10,550,250 98.86% 2018 11,679,354 11,040,516 94.53% 267,238 11,307,754 96.82% 2019 12,395,960 11,894,401 95.95% 96,641 11,991,042 96.73% 2020 12,607,874 11,998,360 95.17% 241,683 12,240,043 97.08% 2021 13,527,500 12,917,734 95.49% 91,377 13,009,111 96.17% 2022 13,947,187 12,958,850 92.91% 421,937 13,380,787 95.94% 2023 15,019,091 14,394,277 95.84% 48,995 14,443,272 96.17% 2024 16,044,884 15,368,164 95.78% 80,606 15,448,770 96.28% Notes:

Source: Los Angeles County Auditor Controller's Office - Accounting Division Last Ten Fiscal Years

PROPERTY TAX LEVIES AND COLLECTIONS

CITY OF WEST COVINA
Fiscal Year of Levy
Collected within the
Total Collections to Date
City
The amounts presented include City property taxes and Community Development Commission tax increment. This schedule also includes amounts collected by the City and the Community Development Commission that were passed-through to other agencies.
204
(continued)
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2015 N/A N/A N/A N/A N/A N/A
2016 N/A N/A N/A N/A N/A N/A
2017 N/A N/A N/A N/A N/A N/A
2018 N/A N/A N/A N/A N/A N/A
2019 N/A N/A N/A N/A N/A N/A
2020 N/A N/A N/A N/A N/A N/A
2021 N/A N/A N/A N/A N/A N/A
2022 N/A N/A N/A N/A N/A N/A
2023 N/A N/A N/A N/A N/A N/A
2024 N/A N/A N/A N/A N/A N/A
Total Collections to Date
Community Development Commission
Fiscal Year of Levy
Collected within the
205
Fiscal Year Lease Capital Total Total
Ended Revenue Lease Governmental Business-type
June 30 Bonds Loans Obligations Activities Activities
2015 47,225,000 12,941,113 216,342 60,382,455 -
2016 46,000,000 12,208,103 2,715,337 60,923,440 -
2017 42,570,000 10,920,515 - 53,490,515 -
2018 41,190,000 10,341,597 - 51,531,597 -
2019 39,680,000 9,762,679 - 49,442,679 -
2020 38,425,000 9,183,761 - 47,608,761 -
2021 241,170,000 8,104,843 6,602,048 255,876,891 -
2022 237,238,298 7,525,925 6,411,667 251,175,890 -
2023 231,690,193 6,947,007 6,044,700 244,681,900 -
2024 225,782,088 6,368,089 5,783,541 237,933,718 -
Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: City of West Covina Finance Department
Business-Type
Activities

CITY OF WEST COVINA
Governmental Activities
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(1) These ratios are calculated using personal income and population for the prior calendar year. 206
(continued)
Total Percentage Debt
Primary of Personal Per
Government Income (1) Capita (1)

2.25% 560 60,382,455
60,923,440 2.27% 565
53,490,515 1.98% 494
51,531,597 1.88% 477
49,442,679 1.70% 466
47,608,761 1.56% 451
255,876,891 8.06% 2,364
251,175,890 7.56% 2,328
244,681,900 6.60% 2,243
237,933,718 5.99% 2,200
207
Fiscal Year Lease Capital Percent of
Ended Revenue Lease Assessed Per
June 30 Bonds Obligations Total Value(1) Capita
2015 47,225 216 47,441 0.50% 438
2016 46,000 2,715 48,715 0.48% 427
2017 42,570 - 42,570 0.40% 393
2018 41,190 - 41,190 0.37% 381
2019 39,680 - 39,680 0.33% 374
2020 38,425 - 38,425 0.31% 364
2021 241,170 6,602 247,772 1.92% 2,228
2022 237,238 6,412 243,650 1.83% 2,199
2023 231,690 6,045 237,735 1.72% 2,124
2024 225,782 5,784 231,566 1.55% 2,087
Notes:

Source: City of West Covina Finance Department and Los Angeles County Assessor's Office

CITY OF WEST COVINA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(in thousands of dollars, except Per Capita)
(1) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
208
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable (1) Debt
Debt repaid with Property Taxes:

METROPOLITAN WATER DISTRICT $ 9,835,780 0.806 $ 79,240
MT. SAN ANTONIO CCD DS 2008 SERIES 2013A 160,803,885 12.768 20,531,113 MT. SAN ANTONIO CCD DS 2008 SERIES 2013B 1,620,000 12.768 206,838 MT. SAN ANTONIO CCD DS 2013 REF SERIES A 12,320,000 12.768 1,572,993 MT. SAN ANTONIO CCD DS 2013 REF SERIES B 14,560,000 12.768 1,858,991 MT. SAN ANTONIO CCD DS 2008 SERIES 2015C 3,700,000 12.768 472,408 MT. SAN ANTONIO CCD DS 2015 REF BONDS 3,290,000 12.768 420,061 MT. SAN ANTONIO CCD DS 2018 SERIES 2019A 265,125,000 12.768 33,850,621 MT. SAN ANTONIO CCD DS 2020 SERIES A 59,075,000 12.768 7,542,576 MT. SAN ANTONIO CCD DS 2008 SERIES 2020D 120,358,674 12.768 15,367,151 MT. SAN ANTONIO CCD DS 2008 SERIES 2021E 289,508,893 12.768 36,963,907 BALDWIN PARK USD 2002 SERIES 2004 4,882,131 0.303 14,779 BALDWIN PARK USD 2006 SERIES 2013 1,989,076 0.303 6,021 BALDWIN PARK USD 2016 REF BONDS 57,660,000 0.303 174,546 BALDWIN PARK USD 2006 SERIES 2019 10,895,000 0.303 32,981 BALDWIN PARK USD 2019 REF BONDS 32,996,025 0.303 99,884 BALDWIN PARK USD 2018 SERIES 2020 26,800,000 0.303 81,128 BASSETT USD DS 2006 SER B 10,185,729 0.054 5,528
BASSETT USD DS 2014 REF SERIES A 7,325,000 0.054 3,975
BASSETT USD DS 2014 REF SERIES B 4,970,000 0.054 2,697
BASSETT USD DS 2014 SERIES A 8,375,000 0.054 4,545
BASSETT USD DS 2016 REF BONDS 5,345,000 0.054 2,901
BASSETT USD DS 2014 SERIES B 19,530,000 0.054 10,599
COVINA VALLEY USD DS 2001 SERIES B 7,226,440 31.283 2,260,623 COVINA VALLEY USD DS 2012 SERIES A 3,715,000 31.283 1,162,151 COVINA VALLEY USD DS 2013 REF BONDS 4,470,000 31.283 1,398,335 COVINA VALLEY USD DS 2012 SERIES B 12,000,000 31.283 3,753,920 COVINA VALLEY USD DS 2012 SERIES C 2,130,000 31.283 666,321 COVINA VALLEY USD DS 2012 SERIES C1 15,335,000 31.283 4,797,197 COVINA VALLEY USD DS 2016 REF BONDS 28,515,000 31.283 8,920,252 COVINA VALLEY USD DS 2012 SERIES D 13,600,000 31.283 4,254,443 COVINA VALLEY USD DS 2012 SERIES E 56,580,000 31.283 17,699,733 COVINA VALLEY USD DS 2019 REF BONDS 47,850,000 31.283 14,968,756 HACIENDA-LA PUENTE USD DS 2005 REFUNDING BONDS 12,725,000 1.391 176,960 HACIENDA-LA PUENTE USD DS 2007 REFUNDING 44,590,000 1.391 620,090 HACIENDA-LA PUENTE USD DS 2016 SERIES 2017A 57,895,000 1.391 805,115 ROWLAND HEIGHTS USD DS 2005 REF BONDS 4,569,606 14.542 664,511 ROWLAND HEIGHTS USD DS 2006 SERIES D QSCB 10,575,000 14.542 1,537,815 ROWLAND HEIGHTS USD DS 2006 SERIES E 19,830,000 14.542 2,883,676 ROWLAND HEIGHTS USD DS 2012 SERIES A 375,000 14.542 54,532 ROWLAND HEIGHTS USD DS 2013 REF BONDS 20,030,000 14.542 2,912,760 ROWLAND HEIGHTS USD DS 2012 SERIES B 65,999,972 14.542 9,597,706 ROWLAND HEIGHTS USD DS 2015 REF BONDS 38,625,000 14.542 5,616,842 ROWLAND HEIGHTS USD DS 2019 REF BONDS 10,565,000 14.542 1,536,361 ROWLAND HEIGHTS USD DS 2020 REF BONDS 45,110,000 14.542 6,559,889 WALNUT VALLEY USD DS 2000 SERIES D 10,067,924 0.767 77,224 WALNUT VALLEY USD DS 2000 SERIES E 3,743,269 0.767 28,712 WALNUT VALLEY USD DS 2007 SERIES B MEAS. S 9,421,644 0.767 72,267 WALNUT VALLEY USD DS 2014 REF BONDS SERIES A 3,260,000 0.767 25,005 WALNUT VALLEY USD DS 2014 REF BONDS SERIES B 715,000 0.767 5,484 WALNUT VALLEY USD DS 2016 REF BONDS 37,170,000 0.767 285,105 WALNUT VALLEY USD DS 2016 SERIES A BONDS 38,440,000 0.767 294,846 WALNUT VALLEY USD DS 2019 REF BONDS 25,110,000 0.767 192,601 WALNUT VALLEY USD DS 2016 SERIES B BONDS 106,615,000 0.767 817,769 WEST COVINA USD 2002 REFUNDING SERIES A 7,110,000 95.573 6,795,272 WEST COVINA USD DS 2012 REF BONDS 7,890,000 95.573 7,540,745 WEST COVINA USD DS 2016 SERIES A 99,125,000 95.573 94,737,174 Sub Total Overlapping Debt 323,025,675
City of West Covina Direct Debt - Notes Payable 6,368,089 City of West Covina Direct Debt - Loans Payable 5,783,541 City of West Covina Direct Debt - Lease Revenue Bonds 249,274,843 Total Direct and Overlapping Debt $ 584,452,148
Source: HdL Coren & Cone, Los Angeles, County Assessor and Auditor Combined 2020-21 Lien Date Tax Rolls Direct and Overlapping Debt
June 30, 2023

CITY OF WEST COVINA
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Glendora. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for the debt, for each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the County's taxable assessed value that is within the government's boundaries and dividing it by the County's total taxable assessed value. 209
2015 2016 2017 2018
Assessed valuation $ 7,034,995 $ 7,377,023 $ 7,740,820 $ 8,154,209 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,758,749 1,844,256 1,935,205 2,038,552 Debt limit percentage 15% 15% 15% 15%
Debt limit 263,812 276,638.36 290,280.75 305,782.84
Total net debt applicable to limitation - - - -
Legal debt margin $ 263,812 $ 276,638 $ 290,281 $ 305,783 Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Source: City of West Covina Finance Department
Los Angeles County Tax Assessor's Office
Fiscal Year
The Government Code of the State of California provides for a legal debt margin of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proprtionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit.

CITY OF WEST COVINA
(in thousands of dollars)
Last Ten Fiscal Years
Legal Debt Margin Information
210
(continued)
2019 2020 2021 2022 2023 2024
$ 9,014,133 8,627,010 $ 9,351,074 $ 9,667,753 $ 10,102,815 $ 3,836,294 $ 25% 25% 25% 25% 25% 25%
2,253,533 2,156,753 2,337,769 2,416,938 2,525,704 959,074 15% 15% 15% 15% 15% 15%
338,029.99 323,512.88 350,665.28 362,540.74 378,855.55 143,861.03 - - - - - -
$ 323,513 $ 338,030 $ 350,665 $ 362,541 $ 378,856 $ 143,861

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Fiscal Year
211
Fiscal Year
Ended
June 30 Revenue Principal Interest Coverage
2015 57,588 1,655 891 22.62
2016 58,133 1,900 1,121 19.24
2017 64,372 4,005 1,185 12.40
2018 67,196 2,005 1,306 20.29
2019 65,426 1,255 1,918 20.62
2020 70,935 1,255 1,918 22.36
2021 72,992 1,350 1,859 22.75
2022 81,019 5,100 8,845 5.81
2023 85,678 5,495 8,671 6.05
2024 90,226 5,855 8,511 6.28
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2015 9,260 1,420 920 3.96
2016 15,110 1,480 853 6.48
2017 9,365 19,005 802 0.47
2018 9,040 1,480 455 4.67
2019 11,169 1,765 406 5.14
2020 8,190 1,820 361 3.76
2021 6,775 1,865 306 3.12
2022 5,427 1,615 253 2.91
2023 3,151 1,425 237 1.90
2024 2,082 1,255 239 1.39
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.

Source: City of West Covina Finance Department

CITY OF WEST COVINA
Pledged Revenue Coverage
Last Ten Fiscal Years
(In thousands of dollars)
Debt Service
Lease Revenue Bonds and Certificates of Participation
Debt Service
Tax Allocation Bonds
212
(continued)
Fiscal Year Less Net
Ended Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2015 3,305 1,457 1,848 2,340 1,758 0.45
2016 6,911 1,429 5,482 2,940 2,124 1.08
2017 4,596 2,536 2,060 2,745 1,365 0.50
2018 4,431 2,536 1,895 3,000 1,429 0.43
2019 5,304 929 4,375 3,250 1,004 1.03
2020 3,999 3,365 634 3,495 1,120 0.14
2021 5,627 3,916 1,711 3,735 650 0.39
2022 3,879 4,347 ( 4,055 468) 416 (0.10)
2023 1,371 105 1,266 4,905 416 0.24
2024 2 (2) -
Debt Service
Assessment District Bond
213
Per
Personal Capita Annual
Calendar Income Personal Unemployment
Year Population (in thousands) Income Rate
2015 107,873 2,680,000 $ 24,844 8.2%
2016 107,813 2,705,736 $ 25,096 6.4%
2017 108,245 2,737,892 $ 25,293 5.2%
2018 108,116 2,916,516 $ 26,975 4.6%
2019 105,999 3,053,619 $ 28,807 4.4%
2020 105,593 3,173,022 $ 30,049 13.1%
2021 108,243 3,324,204 $ 30,710 9.2%
2022 107,893 3,706,972 $ 34,357 4.8%
2023 109,105 3,970,712 $ 36,393 4.7%
2024 108,173 3,970,712 $ 36,707 5.6%
Sources: HdL Coren & Cone, California State Department of Finance, and California Employment Development Demographic and Economic Statistics
Last Ten Calendar Years

CITY OF WEST COVINA
214
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment Queen of the Valley Campus 1 3.07% 1,588 1,607 1 2.96%
WC Unified School District 2 2.41% 1,512 1,261 2 2.82%
City of West Covina 3 0.84% 437 4 0.65% 351
Porto's Bakery 4 0.77% 402
Target Store #T1028 & #T2147 393 5 0.75% 3 0.70% 374
Merakey Allos 6 0.70% 364
Macy's 7 0.56% 291 6 0.54% 289
Interspace/Concorde Battery Corporation 254 8 0.49% 7 0.46% 245 Walmart Store #5954 9 0.46% 243 5 0.56% 300
The Home Depot 10 0.31% 162
JC Penny 8 0.41% 220
B.J.'s Restaurant & Brewery 196 9 0.37%
SGV Newspaper Group 10 0.34% 180
Totals 5,414 10.35% 5,255 9.81%
Note: "Total Employment" as used above represents the total employment of all employers located within City limits.

Source: Labor Market Info, EDD, State of California
HdL Coren & Cone
2024 2015
Principal Employers
Current Year and Nine Years Ago

CITY OF WEST COVINA
215
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General government 31 32 42 46 36 32 38 48 34 38
Public safety 268 268 282 259 238 237 259 242 248 251
Public works 71 71 75 56 44 - - -
Public Services - - - - 25 32 41 51 39 -
Community services 41 41 87 64 64 27 22 22 59 74
Community development 2 2 1 1 3 12 13 19 24 35
Total 414 487 426 385 333 364 372 416 437 413
Source: City of West Covina Finance Department
Last Ten Fiscal Years
Full-time and Part-time City Employees by

CITY OF WEST COVINA
Fiscal Year
216
Page intentionally left blank.
217
Function/Program 2015 2016 2017 2018
Public Safety:

Police:

Total arrests 2,544 2,624 2,818 3,080
Calls for police service (1) 71,098 72,368 74,898 84,850 Graffiti sites cleaned 16,156 N/A N/A N/A
Fire:

Emergency responses 8,555 9,494 9,353 9,383
Fire inspections 717 778 816 805
Public Services:

Building permits issued 3,617 5,038 1,547 1,399
Graffiti sites cleaned (2) N/A 13,964 6,694 2,391
Community Services:

Recreation class registrations (3) 6,487 7,129 7,500 17,902 Note:
(1) Calls received that generated an incident number but not necessarily a police response. (2)
(3)
(4)
Source: City of West Covina Finance Department
Fiscal Year
The decrease in recreation class registrations in FY20
relates to COVID restrictions.

Last Ten Fiscal Years
Operating Indicators by Function

CITY OF WEST COVINA
Due to department restructuring, the responsibility for graffiti abatement was absorbed by the Police
Department starting fiscal year 2008-2009 and by
The increase in recreation class registrations in FY18
relates to inclusions of daycare classes.
218
(continued)
2019 2020 2021 2022 2023 2024
2,037 2,538 1,266 1,266 1,695 1,663
68,605 73,713 61,353 68,221 68,565 66,113

N/A N/A N/A N/A N/A N/A
8,944 9,289 9,405 10,286 10,189 10,200
920 1,009 964 1,079 1,582 1,849
3,022 2,938 3,701 4,941 2,494 2,950
3,140 3,077 2,632 4,363 4,782 4,179

8,075 26,482 65 3,533 6,570 28,896
Fiscal Year
219
2015 2016 2017 2018
Public Safety:

Police:

Stations 1 1 1 1
Fire:

Stations 5 5 5 5
Public works:

Streets (miles) 231.0 240.3 240.3 240.3
Streetlight poles 826 826 674 674
Streelight fixtures 1,109 1,109 420 420
Traffic signals 114 114 97 97
Parks and recreation:
1 1 1 1
Parks 16 16 16 16
Community centers 4 4 4 4
Wastewater:

Sanitary sewers (miles) 238.9 238.9 227.0 227.0
Storm sewers (miles) 42.0 42.0 26.0 26.0
Source: City of West Covina
Capital Asset Statistics by Function/Progra
Sports Complex

CITY OF WEST COVINA
Last Ten Fiscal Years
Function
Fiscal Year
220
(continued)
2019 2020 2021 2022 2023 2024
1 1 1 1 1 1
5 5 5 5 5 5
240.3 240.3 240.3 240.3 240.3 240.3
674 674 674 674 674 674
420 420 420 420 420 420
97 97 97 97 97 97
1 1 1 1 1 1
16 16 16 16 16 16
4 4 4 4 4 4
227.0 227.0 227.0 227.0 227.0 227.0

26.0 26.0 26.0 26.0 26.0 26.0
Fiscal Year
221
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of West Covina
West Covina, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of West Covina (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 29, 2025.

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

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did ATTACHMENT NO. 2
not identify any deficiencies in internal control that we consider to be weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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

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

January 29, 2025
January 29, 2025
City Council
City of West Covina
West Covina, CA
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of West Covina for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 3, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year, except for the implementation of GASB Statement No. 100, Accounting Changes and Error Corrections. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:

Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.
1 ATTACHMENT NO. 3
Management’s estimate of capital assets depreciation is based on historical estimates of each capitalized item’s useful life. We evaluated key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements as a whole.

Management’s estimate of the net pension and net OPEB liabilities/(assets) are based on actuarial information provided by the California Public Employee Retirement System’s (CalPERS) actuarial office, and other sources. We evaluated the key factors and assumptions used to develop these liabilities in determining that the estimated liabilities/(assets) are reasonable in relation to the financial statements as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

The disclosure of the fair value of investments in Note 2 to the financial statements represents amounts susceptible to market fluctuation.

The disclosure of accumulated depreciation in Note 6 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosures for the net OPEB and net pension liabilities/(assets) in the Notes to the financial statements are based on assumptions for discount rates, etc., which could differ from actual experience. The notes disclose the differences in these liabilities/(assets) if different assumptions are used in estimating these liabilities/(assets).

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
2 Management Representations
We have requested certain representations from management that are included in the management representation letter dated January 29, 2025.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis and the schedules listed as required supplementary information in the table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory sections, which accompanies the financial statements but is not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
3 Restrictions on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
4 City of West Covina www.westcovina.org
Community
2023- 2024
Financial Report
This report provides a snapshot of the City’s financial information, for Fiscal Year (FY) ending June 30, 2024 presented in a userfriendly format. For additional detail, please see the City's complete Annual Comprehensive Financial Report for fiscal year ending June 30, 2024 available at www.westcovina.org.

ATTACHMENT NO. 4
www.westcovina.org 2
108K
2024
Population

36.7K 5.6%
2024 Per Capita 2024 Annual
Personal Income Unemployment Rate
City of West Covina Community Financial Report FY 2023-24 City Overview

CITY COUNCIL
Brian Tabatabai, Mayor
Tony Wu, Mayor Pro Tem
Ollie Cantos, Councilman
Rosario Diaz, Councilwoman
Letty Lopez‐Viado, Councilwoman

ELECTED OFFICIALS
Nickolas S. Lewis, City Clerk
Colleen B. Rozatti, City Treasurer

CITY MANAGER
Paulina Morales

EXECUTIVE MANAGEMENT TEAM
Roxanne Lerma, Assistant City Manager/Public Works Director Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Stephanie Sikkema, Finance Director
Vincent Capelle, Fire Chief
Richard Bell, Police Chief
This report is informational in nature and does not constitute a financial statement as defined by Generally Accepted Accounting Principles. The data presented is taken directly from the audited Annual Comprehensive Financial Report (ACFR) for fiscal year ending June 30, 2024.

The City of West Covina is located in the San Gabriel Valley, 20 miles east of downtown Los Angeles and 15 miles north of Orange County. Incorporated as a general law city in 1923, the City's 16 square miles flourished with walnut groves and orange groves for many decades.

West Covina
Assets $383M $380.3M
Bonds
$225.8
Net Pension Liability
$57.9
Total OPEB Liability
$57.3
Notes & Loans
$12.2
Compensated Absences
$4.4
51%
www.westcovina.org 3
As of June 30, 2024, the City’s total net position was $13.7 million. This is an increase of $7.1 million from the prior year. This increase is due to an increase in assets of $2.7 million, a $5.2 million decrease in deferred inflows of resources, and a $5.9 million decrease in lease revenue bond liabilities. Additionally, the City’s total governmental funds reported combined ending fund balances of $150.1 million, an increase of $13.4 million in comparison with the prior fiscal year of $136.7 million.

Statement of Net Position
City of West Covina Community Financial Report FY 2023-24 The City's Net
position increased by
107% or $7.1M
over FY 2022-23
Assets Increased by
1% or $2.7
M
Liabilities Increased
by 1% or $4.9M
Bonds make up the
majority of this liability
Capital Assets make up 51%
The City's net position may serve as a
useful indicator of the government’s
financial position over time.

Capital
Deferred
Inflows $19M $25.2M
Total
Net
Position
$13.7M $6.6M
Deferred
Outflows $49.7M $46.7M
2024 2023
Liabilities $400M $395.1M
Nonspendable Restricted Assigned
Unassigned
2020 2021 2022 2023 2024

0.0 5.0

10.0 15.0

20.0 25.0

30.0 Taxes

82.4%
Charges for Services

9.8%
Licenses and Permits

2.6%
Fines

1.1%
Public Safety
79%
Public Works

8.1%
General Government
7% Beginning Fund
Balance $21M
Revenue Less
Expenditures + $21.2M
Net Transfers - $20.4M
Ending Fund
Balance = $21.8M
General Fund
www.westcovina.org 4
$90.2 Million
Revenue
$69 Million
Expenditures
Changes in General Fund Fund Balance by
Fiscal Year (Millions)
City of West Covina Community Financial Report FY 2023-24 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $18.5 million, while total fund balance was $21.9 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 26.8% of total general fund expenditures, while total fund balance represents 31.7% of that same amount. The nonspendable portion of fund balance in the amount of $3.4 million mainly consists of Land Held for Resale in the amount of $3.0 million.

AGENDA ITEM NO. 6

BIDS AND REQUESTS FOR PROPOSALS
RECOMMENDATION:

It is recommended that the City Council take the following actions:

Receive and file the listing of all contracts and purchase orders that have been awarded by the City Manager from April 1, 2024 to January 31, 2025.

1. 2. Reject the unawarded bids and requests for proposals detailed within the staff report.

BACKGROUND:

Sections 2-337 and 2-356 of the West Covina Municipal Code require that a report be presented to the City Council on a semi-annual basis listing all contracts and purchase orders that have been awarded by the City Manager pursuant to the City Manager's authority during the preceding six months. The report must include a description of the materials or services or public project performed, the vendor/contractor name and the amount of the expenditure. The last report was submitted to the City Council at the April 16, 2024 City Council meeting.

DISCUSSION:

Staff is submitting a Purchasing Report (Attachment No. 1) that provides a list of all purchase orders entered into under the Purchasing Officer's and City Manager's authority during the period of April 1, 2024 through January 31, 2025.

During this process, staff identified bids and requests for proposals that were posted and opened but not awarded. They are listed in Table 1 below. Per West Covina Municipal Code Sections 2-334, 2-354, and 2-355, the City Council may reject any and all bids or proposals presented. Staff is presenting the list below for formal rejection by the City Council as no action has been taken.

RFP Description RFP # Posted Bid Opened
Farmers’ Market/Night Market 202412 May 16, 2024 July 23, 2024 Sportsplex Operations 202414 October 23, 2024November 21, 2024 LEGAL REVIEW:

The City Attorney's Office has reviewed this staff report.

Prepared by: Stephanie Sikkema, Finance Director
Fiscal Impact
FISCAL IMPACT:

This is strictly an administrative item, therefore, there is no fiscal impact associated with this action.

Attachments
Attachment No. 1 - Purchases within City Manager Authority CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1
City of West Covina
Contracts & Purchase Orders Issued under Sections 2-337 and 2-356 of the Municipal Code April 1, 2024 to January 31, 2025
Vendor Name Item Description Amount FYE2024 Amount FYE2025 10-8 RETROFIT INC Installation of vehicle mounted $13,437 Vehicle mounted equipment $21,456
AFFORDABLE GENERATOR Repairs to Control Panel $11,452
AM TEC TOTAL SECURIT PNM-Wisenet and Network $5,704
AMERICAN BIKE PATROL 5 Police Ebikes $27,105
AON RISK SERVICES IN Actuarial Services - Workers Comp $11,000 ARTISAN PANELS INC Fencing for Sewer Lift $71,697
ATHANS ICE HOUSE Let It Snow - Ice $14,939
BARCODES LLC Mobile Label Printer Zebra Zq521 $9,986
BE DAZZLE MY EVENTS Event Setup $15,035
State of the City Chair Rental $22,956
CDW GOVERNMENT INC Adobe Pro Licenses $10,672
Annual Veeam Server Backup Softw $6,700
Palo Alto Annual Support Subscri $36,187
CLOSET QUEEN EVA Ladies Locker Room Cabinets $18,200
COASTLINE EQUIPMENT Repair Skid Steer With Tracks $14,400 COMPLETE PAPERLESS S Laserfiche Support $11,077
COVE COCKTAIL BAR, T State of The City - Wait Staff. $10,149 CPAC INC.COM Trend Micro Cloud One Endpoint S $7,620
CRAFCO INC Roadway Maintenance Supplies $20,000
DANIELS TIRE SERVICE Tires $25,000
DAVID WELLHOUSE State Mandated Cost Reimbursement $5,500 DELL COMPUTERS Dell EMC Ml3/Ml3E Tape Backup $25,359
Desktop Replacement Program Work $26,823
PowerEdge R760 servers $37,701
DESTINY SOFTWARE INC Agenda Quick Software $6,500
DIVERSIFIED LEASING New 2025 Honda Odyssey EXL $49,026
New 2025 Honda Pilot EXL $52,471
DURATECH USA GETAC F110G5 & G6 Gambler Johnson $30,303
DWWCT LLC 2023 Nissan Altima SL $24,768
E TSENG & ASSOC Preparation of AB 939 Report $6,500
ECOHERO SHOW LLC Community Engagement for CRV Rec $5,200 ECONOLITE CORP Traffic Signal Cabintes and Parts $84,227 ELECTRA-MEDIA INC Sign Maintenance & Programming $19,215 ESRI 2024 Annual Arcgis Online Licens $14,220
FEC ELECTRIC INC Install Pedestal and Controls $10,900
FORTRESS SECURITY & Security and Fire Alarm Monitoring $19,608 FOSTER & FOSTER CONS Actuarial Valuaiton & GASB 75 Report $19,000 FULL CIRCLE ELECTRON Recycling of Electronic Waste $5,500 GOLDEN BELL PRODUCTS Insecticide For Sewer Manholes $39,000 GRAFIX SYSTEMS Vehicle Graphics $20,772
GRAINGER INC Janitorial Supplies $20,000
HI WAY SAFETY INC Barricade, Type 1, Eg, 8/6X24, W $6,278

Page 1 of 3 ends

West Covina City CouncilFebruary 18, 2025

West Covina City Council
February 18, 2025