West Covina City Council
August 18, 2026

Goal# 4 - Evaluate Performance and Make Adjustments
i. Monitor, Measure, and Evaluate Performance
A. Monitor, Measure, and Evaluate Program Performance
• The City quarterly evaluate the performance of the programs and services it provides. The City functions, programs, and activities will also be periodically reviewed to determine whether they are accomplishing intended program goals and making efficient use of resources.
• Performance measures, including efficiency and effectiveness measures, are to be presented in basic budget materials, including the operating budget document, and be available to stakeholders. • Performance measures should be reported using actual data, where possible.
• At least some of these measures should document progress toward achievement of previously developed goals and objectives. • More formal reviews and documentation of those reviews should be carried out as part of the overall planning, decision-making, and budget process.

B. Monitor, Measure, and Evaluate Budgetary Performance • At a minimum, the City will, on a quarterly basis, evaluate its financial performance relative to the adopted budget. Regular monitoring of budgetary performance provides an early warning of potential problems and gives
decision makers time to consider actions that may be needed if major deviations in budget-to-actual results become evident. It is also an essential input in demonstrating accountability.
• Budget-to-actual or budget-to-projected actual comparisons of revenues, expenditures, cash flow, and fund balance willbe reviewed quarterly during the budget period. Staffing levels are also monitored. • Comparisons for at least the current year will be included in the budget document and be generally available to stakeholders during discussionsrelated
to budget preparation and adoption.
• Expenditures shall be limited to the amount budgeted. Expenditures shall be continuously monitored and projected to the end of the year.

If the projected expenditures exceed the budget, appropriate remedies shall be implemented immediately.

C. Monitor, Measure, and Evaluate Financial Conditions
• The City will monitor and evaluate its financial condition at least quarterly. The financial health of the City is critical to its ability to meet

• the needs of stakeholders. Financial condition should be evaluated to identify potential problems and any changes that may be needed to improve performance over both the short and long terms. • Financial indicator measures often are developed to monitor financial condition and achievement of explicitly set financialgoals. • Indicatorsto monitor factorsthat affect financial performance are also reported.
• A report on financial condition will be periodically prepared and updated.
• The report may be a separate document or incorporated into other relevant documents, including the budget document.

D. Monitor, Measure, and Evaluate External Factors
• The City is to constantly monitor and evaluate external factors that may affect budget and financial performance and achievement of goals atleast quarterly. Factors outside the City's control, such as the national or regional economy, demographic changes, statutory changes, legislation, mandates, and weather, may affect achievement of stated goals. Monitoring these factors helps the City to evaluate and respond to the effect of these external influences on goals, programs, and financial plans.
• External factors that are likely to be important in achieving goals are to be identified and monitored regularly.
• The results of this analysis will be factored into the assessment of programand financial performance and considered in adjusting these programs.
• Trends and significant issues may be described in reports to stakeholders discussing program, budget, and financial performance. • The assessment of external factors is to be reported, at least in summary form, and available to stakeholders.

E. Monitor, Measure, and Evaluate Capital Improvement Program Implementation
• The City will monitor, measure, and evaluate capital improvement program implementation at least quarterly. Monitoring the status of capital projects helps to ensure that projects progress as planned, problems (such as delays in key milestones and cost overruns) are identified early enough to take corrective action, funds are available when needed, and legal requirements are met.
• Reports on capital project implementation will be prepared for decision makers and otherstakeholders.
• Summary information is to be considered for projects that are progressing as planned.
• Project milestones, such as dates for completion of such tasks as planning, land acquisition, engineering and design, and construction,

should be identified and progress in meeting these milestones should be reported atleast annually, and as available.
• The City will monitor quality compliance and financial performance. ii. Make Adjustments asNeeded
A. Adjust the Budget
• The budget may be adjusted during the budget period should unforeseen events require changes to the original budget plan. The budget isa plan based on a set of assumptions that may not always match actual experiences during the execution phase. The City should watch for significant deviations from expectations and make timely adjustments so that the plan is consistent with revised expectations. • The City has procedures in place to determine when deviations from the budget plan merit adjustments to the budget.
• Budget adjustments, whether to programs or to revenues and expenditures,are to be made as appropriate in a timely manner.7 • Any changes to the budget are to be reported.
• The timing and way thisis done depends on the stakeholder group and the level of materiality of the changes.

B. Adjust Policies, Plans, Programs, and Management Strategies • The City may adjust its policies, plans, programs, and management strategies during the budget period, as appropriate. Changing conditions or programs and services that are not producing the desired results or efficiently utilizing resources may require adjustmentsforthe City to continue tomeetthe needs of stakeholders and to meet its own goals.
• The City's management team will evaluate their monthly budget to actual report for review, decision making, and implementation of changes to policies, plans, programs, and management strategies during the budgetperiod.
• Adjustments are based on findings obtained from monitoring and assessing program and financial results, stakeholder input, and external circumstances.
• Regular briefings to management and elected officials on the contents of the reports permit timely adjustments as needed to the plan or program activities.
7 Budget adjustments may be administrative or legislative depending on the adjustment needed and on statutory requirements such as the legal level of control of the budget appropriations.

City Manager may make adjustment within the fund across departments as long as the overall appropriation is not changed.

C. Adjust Broad Goals, if Appropriate
• The City will modify or change its broad goals if conditions change sufficiently that these goals are no longer appropriate. Goals may need to be adjusted in response to new information about program results, stakeholder needs, and external circumstances in order to be more relevant for the community or more practically attainable. • The City department heads meet to evaluate performance or changes in the annual budget plan to ensure that goals are reviewed during thebudget period
and adjusted when appropriate.
• Adjustments are based, in part, on findings obtained from monitoring and assessing program and financial results, stakeholder input, and external circumstances.
• Opportunities and challenges facing the City are also to be considered.

City of West Covina
Debt Management Policy
Adopted – May 19, 2020
ATTACHMENT NO. 2

CITY OF WEST COVINA

DEBT MANAGEMENT POLICY
Section 1 – Introduction
The purpose of this Debt Management Policy (Policy) is to establish guidelines for the issuance and management of debt for the City of West Covina and all affiliated city entities (collectively, the “City”). While the City prefers to finance projects on a pay-as-you-go basis, in the event debt is necessary, this Policy confirms the commitment of the Council, management, staff, advisors and other decision makers to adhere to sound financial management practices, including full and timely repayment of borrowing, and achieving the lowest possible cost of capital within prudent risk parameters.

Debt Issuance Priorities:

1. Achieve the lowest cost of capital while maintaining compliance with state and federal laws and regulations

2. Maintain a prudent level of financial risk and maintain the City’s sound financial position

3. Preserve future financial flexibility

4. Ensure that all debt is structured to maximize the benefit to both current and future taxpayers, ratepayers, and constituents of the City

5. Maintain full and complete financial disclosure and reporting

6. Obtain and maintain the highest practical credit ratings consistent with maximizing the benefit to both current and future taxpayers, ratepayers and constituents of the City.

7. Maintain good relations with all investors in City debt

8. Ensure that the City’s debt is consistent with the City’s planning goals and objectives and capital improvement program or budget, as applicable
This policy shall govern the issuance and management of all debt and lease financing funded from the capital markets (including private placement and bank loans), including the selection and management of related financial services and products and investment of bond and lease proceeds. While adherence to this policy is required in applicable circumstances, it is recognized that changes in the capital markets, agency programs and other unforeseen circumstances may from time to time produce situations that are not covered by this policy and will require modifications or exceptions to achieve policy goals. In these cases, management flexibility is appropriate, provided specific authorization from the City Manager and City Council is obtained.

Section 2 – Responsibilities
The City’s debt program for all City funds shall be operated in conformance with applicable federal, state, and other legal requirements, including the West Covina Municipal Code.

Responsibility for managing the coordinating of all activities related to the structure, issuance and administration of all long and short-term debt obligations shall rest with the Finance Director.

No debt obligations shall be presented to the City Council for their authorization without the joint assessment and recommendation of the City Manager, Finance Director and the City Attorney. Departments planning debtfinanced capital programs or equipment acquisitions shall work closely with the City Manager, Finance Director and City Attorney to provide information and otherwise facilitate the issuance and on-going administration of debt.

The Finance Director shall have the authority to periodically select service providers as necessary to meet legal requirements and minimize debt costs. Such services may include financial advisory, underwriting, trustee, verification agent, escrow agent, arbitrage consulting, special tax consulting, bond and disclosure counsel, and other consultants as needed. To achieve an appropriate balance between service and cost, the Finance Director is authorized to select such service providers through sole source selection or a competitive process using a Request for Proposals.

The Finance Director shall be responsible for maintaining good communications with rating agencies, investors and other debt related service providers about the City’s financial condition and will follow a policy of full disclosure.

The Finance Director shall conduct an annual review of the Policy and bring forward to the City Council any amendments deemed necessary and appropriate.

Section 3 – Debt Considerations
The City will evaluate the need for debt financing a project compared to a pay-as-you-go financing methodology.

The City prefers to fund projects on a pay-as-you-go basis.

A. Factors favoring a pay-as-you-go methodology include:
a. Current projected revenues and fund balances available are sufficient to fund the project b. Long term total costs are lower due to the avoidance of interest expense c. Existing debt capacity is insufficient to absorb the additional debt without adverse impact to credit ratings
d. Market conditions are unfavorable or present difficulties in marketing B. Factors favoring debt financing include:
a. Current and projected revenues available for debt service are sufficient and reliable so that financing can be marketed with investment grade credit ratings b. Market conditions present favorable interest rates and demand for the City financings c. A project is mandated by state or federal requirements, and current resources are insufficient or unavailable to fully fund the project
d. The project is immediately required to meet or relieve capacity needs or emergency conditions and current resources are insufficient or unavailable
e. The savings from the project are sufficient to pay for the debt service costs The City will review debt limits in conjunction with any proposed financing. It is the City’s goal to limit debt service costs in the General Fund to no more than twenty-five (25%) percent of revenues, including transfers.

Payments on bonds that are tied to a specified revenue stream other than General Fund resources (e.g. enterprise revenue bonds, tax allocation bonds, and land secured bonds) are not subject to the twenty-five (25%) percent limit. The debt limit will exclude pension obligation bonds and other refunding bonds. Each proposed financing will be individually assessed by the Finance Director and subject to the approval policies contained herein.

Section 4 – Debt Term
The City Council recognizes that any new debt obligation will have an impact on the long-term affordability of all outstanding debt and any future planned debt, as well as budgetary impacts associated with the maintenance and operating costs of debt financed facilities.

A. Term of Debt – Debt will be structured for the shortest period possible, consistent with a fair allocation of costs to current and future beneficiaries or users. The weighted average maturity of the debt (or the portion of the debt allocated to the project) shall not exceed the useful life of the project.

B. Debt Repayment – Typically, the City desires level debt service payments over the term of the debt.

However, the cost of capital, financial risk, current economic conditions, future financial flexibility, credit ratings and available cash flow will be evaluated to determine the most appropriate method of debt amortizations for each debt issue. Notwithstanding the above, back loading of debt service will be evaluated as the circumstances dictate. Back loading occurs when debt service payments are lower in the initial years of a debt term and higher toward the later years of a debt term.

Section 5 – Debt Issuance
The City has the capacity to issue long and short-term debt and to refund any outstanding debt. The following section details the purposes of debt issuance and the method of determining the type of sale for such debt.

A. Long-term Debt – Long-term debt financings are appropriate when the project to be financed is necessary to provide basic services and long-term debt may be used to finance the acquisition or improvement of land, infrastructure, facilities or equipment for which it is appropriate to spread the costs of such over more than one budget year. Long-term debt may be used to fund capitalized interest, cost of issuance, required reserves and any other financing related costs that may be legally capitalized.

Long-term debt shall not be used to fund City operating costs.

B. Short-term Debt – Short-term debt will be considered as an interim source of funding in anticipation of long-term debt. Short-term debt may be issued for any purpose for which long-term debt may be issued, including capitalized interest and financing related costs. Short-term debt is also appropriate to address legitimate short-term cash flow requirements during a given fiscal year to fund the operating costs of the City to provide necessary public services. The City will not engage in short-term borrowing solely for the purpose of generating investment income.

C. Financings on Behalf of Other Entities - The City may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties to benefit the public purposes of the City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein.

D. Refunding – Refunding opportunities will be identified by periodic reviews of outstanding debt obligations. Refunding will be considered when there is a net economic benefit from the refunding of a least three (3) percent on a net present value basis. Non-economic refunding may be undertaken to achieve City objectives relating to changes in covenants, call provisions, operational flexibility, tax status, issuer, or other non-economic factors related to the debt.

E. Method of Sale – The City shall have the flexibility to determine which method of sale is appropriate for each debt issuance in light of market interest rates and City objectives. Determination of the appropriate method of sale will rest collectively with the City Manager, Finance Director, and City Attorney. Potential methods of sale include:
a. A competitive bidding process through which interested underwriters submit proposals to purchase an issue of bonds and the award is based on, among other factors, the lowest offered true interest cost.
b. A negotiated sale process through which a selected underwriter, or team of underwriters, negotiate the terms of an issue and sell bonds in the municipal market. Negotiated sales are often used where there are unusual conditions or unique considerations related to the bond sale. A negotiated sale is subject to approval by the City to ensure that interest costs are in accordance with comparable market interest rates.
c. A private (or direct) placement sale typically occurs when the financing can or must be structured for a single or limited number of purchasers or where the terms of the private placement are more beneficial to the City than either a negotiated or competitive sale.

F. Pooled Financing – The City may also consider use of pooled financing as a method of accessing the capital markets. Use of pooled financing will be evaluated collectively by the City Manager, Finance Director, and City Attorney.

Section 6 - Debt Structure
A. Credit Ratings – The City seeks to obtain and maintain the highest possible credit rating when issuing debt. The City will seek credit ratings from at least one major credit rating agency on all debt, as appropriate. Ratings from multiple rating agencies may be sought for a single debt issue based upon the market conditions at the time of the issuance.

B. Fixed Rate and Variable Rate Debt – The City prefers to issue fixed rate debt. Variable rate debt may be used, if market conditions warrant at the time of issuance. It is acknowledged that variable rate debt passes an unknown obligation onto future budget cycles.

C. Call Provisions – The timing for when bonds are callable varies and is determined at the time of pricing such bonds. The City’s preferred structure is to negotiate for optional redemption at par in order to maintain flexibility in the future, but a final decision will be made on a case by case basis after evaluation of the marketability of the City’s bonds.

D. Credit Enhancements – The City may use credit enhancements (letters of credit, bond insurance, surety bonds, etc.) when such credit enhancements prove to be cost effective. The City will consider the use of credit enhancements on a case-by-case basis.

E. Reserve Funds – A debt service reserve fund provides an added measure of security to bond holders and may improve the credit rating and thus lower the costs of borrowing. Reserve funds may be necessary for specific transactions, or the City may choose to create one if it is determined to be cost effective.

When cost beneficial, the City may consider the use of surety bonds, lines of credit, or similar instruments to satisfy the reserve requirements.

Section 7 – Private Activity Use Limitations on Tax Exempt Debt IRS Tax Code Section 141 sets forth private activity tests for the purpose of limiting the volume of tax-exempt bonds that finance activities of persons other than state and local governmental entities. These tests serve to identify arrangements that actually or reasonably expect to transfer the benefits of tax-exempt financing to non- governmental persons. The law includes tests of private use, security and payment as well as private loan financing tests. The law also provides for various safe harbors and nuances to the application of these limits. The City will manage a process to ensure private use compliance and will consult with bond counsel to obtain federal tax advice regarding whether anticipated project use will be consistent with the restrictions on private business use of the bond financed property and, if not, whether any “remedial action” permitted under §141 of the code may be taken as means of enabling that use arrangement to be put into effect without adversely affecting the tax-exempt status of the bonds.

With respect to tax-exempt bonds, the City pledges in each bond issuance that it will monitor and control the receipt, investment, expenditure, and use of all bond proceeds and will take or omit to take any actions as necessary to cause interest on tax-exempt bonds to remain excludable from the gross income of bond holders.

City staff will ensure appropriate lease and building use policies to maintain compliance with this pledge.

Section 8 – Interfund Borrowings
The City may borrow internally from other funds with temporary cash surpluses to meet short term cash needs in lieu of issuing debt. Interfund borrowing extending for more than one year will be brought to Council for approval.

Section 9 – Debt Administration
The Finance Director shall be responsible for administering the City’s debt management program. To that end, this position shall:

A. Ensure compliance with all disclosure and reporting requirements outlined in the City’s Disclosure Policy B. Periodically review outstanding debt for refunding opportunities C. Maintain positive working relationships with rating agencies and other financial professionals D. Review and recommend appropriate structures for all new debt issuances E. Ensure compliance with the Investment Policy and bond documents regarding investing bond proceeds Section 10 – Arbitrage Compliance
Arbitrage is defined as the profit earned when tax-exempt bond proceeds are invested in higher yielding securities than the interest rates of the bonds issued. The City shall comply with its investment policy and California and federal laws.

To ensure compliance with federal arbitrage laws, the City will monitor ongoing activities, including remittance of any required arbitrage rebate. If necessary, the City will utilize a consultant for arbitrage rebate calculations and preparation of the required Internal Revenue Service forms. Arbitrage rebate calculations on outstanding bond issues will be performed periodically, but never longer than the 5th year after a bond issuance.

Section 11 – Disclosure Policy
The Finance Director will be the disclosure coordinator for the City and will have the responsibility of complying with the City’s Disclosure Policy document, as adopted by City Council.

ATTACHMENT NO. 3

City of West Covina
Pension Funding Policy
Adopted – May 19, 2020
ATTACHMENT NO. 4
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I. PURPOSE
The City’s Pension Funding Policy documents the method the City will use to determine its actuarially determined contributions to fund the long-term cost of benefits to the plan participants and annuitants. The policy also:
• Provides guidance in making annual budget decisions;
• Demonstrates prudent financial management practices;
• Create sustainable and affordable budgets for pensions; • Reassures bond rating agencies; and
• Shows employees and the public how pensions will be funded.

II. BACKGROUND
The City provides defined benefit retirement plan through the California Public Employees’ Retirement System (CalPERS). CalPERS is a multiple-employer public employee defined benefit pension plan.

All full-time and certain part-time City employees are eligible to participate in CalPERS.

CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and their beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute.

The financial objective of a defined benefit pension plan is to fund the long-term cost of benefits provided to the plan participants. In order to assure that the plan is financially sustainable, the plan should accumulate adequate resources in a systematic and disciplined manner over the active service life of benefitting employees. This funding policy outlines the method the City will utilize to determine its actuarially determined contributions to fund the long-term cost of benefits to the plan participants and annuitants.

Pension Funding: A Guide for Elected Officials, issued by eleven national groups including the U.S. Conference of Mayors, the International City/County Management Association, and the Government Finance Officers Association, established the following five general policy objectives for a pension funding policy:
• Actuarially Determined Contributions. A pension funding plan should be based upon an actuarially determined contribution (ADC) that incorporates both the cost of benefits in the current year and the amortization of the plan’s unfunded actuarial accrued liability.
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• Funding Discipline. A commitment to make timely, actuarially determined contributions to the retirement system is needed to ensure that sufficient assets are available for all current and future retirees.
• Intergenerational equity. Annual contributions should be reasonably related to the expected and actual cost of each year of service so that the cost of employee benefits is paid by the generation of taxpayers who receives services from those employees.
• Contributions as a stable percentage of payroll. Contributions should be managed so that employer costs remain consistent as a percentage of payroll over time.
• Accountability and transparency. Clear reporting of pension funding should include an assessment of whether, how, and when the plan sponsor will ensure sufficient assets are available for all current and future retirees.

III. POLICY
A. Actuarially Determined Contribution (ADC). CalPERS actuaries will determine the City’s ADC to CalPERS based on annual actuarial valuations. The ADC will include the normal cost for current service and amortization of any under-funded amount. The normal cost will be calculated using the entry age normal cost method using economic and non-economic assumptions approved by the CalPERS Board of Administration.

The City will review the CalPERS annual actuarial valuations to validate the completeness and accuracy of the member census data and the reasonableness of the actuarial assumptions.

B. Additional Discretionary Payment (ADP) Contribution. The City will consider making ADP contributions with one-time General Fund resources, with the objectives of increasing the plan’s funded status, by reducing the unfunded actuarially accrued liability, and reducing ongoing pension costs.

C. Pension Obligations Bonds. The City will consider pension obligation bonds if such bonds have expected savings using borrowing costs and CalPERS’ discount rate.

The City and its advisors will discuss and consider the risks of any potential pension obligation bonds.
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Any pension obligation bonds, or refundings of pension obligation bonds, must be voted upon by the City Council.

D. Contributions as a Manageable Budget Expense. The City will always make its required annual contributions to CalPERS. Contributions should be stable and a manageable portion of revenue. The City may:
• Make additional discretionary contributions directly to CalPERS. • Consider establishing a pension stabilization trust, subject to approval by the Council.
• Issue, call, or refund pension obligation bonds.

E. Transparency and Reporting. Funding of the City’s pension plans should be transparent to vested parties including plan participants, annuitants, the City Council, and residents. In order to achieve this transparency, the following information shall be available:
• Copies of the annual actuarial valuations for the City’s CalPERS plans shall be made available to the City Council.
• The City’s Comprehensive Annual Financial Report shall be published on its website. This report includes information on the City’s annual contributions to the pension systems and their funded status.
• The City’s annual operating budget shall include the City’s contributions to CalPERS.

F. Review of Funding Policy. Funding a defined benefit pension plan requires a long-term horizon. As such, the City will review this policy at least every two years.

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

WHEREAS, California Government Code Section 53646 requires the City Treasurer or the Chief Fiscal Officer to annually render to the City Council a statement of investment policy, which must be considered at a public meeting; and WHEREAS, California Government Code Section 53600 et seq. provides guidelines and regulations pertaining to investment of temporary idle funds; and WHEREAS, on May 17, 2022, the City Council reviewed and approved the amended City of West Covina Statement of Investment Policy through the adoption of Resolution No. 2022-48; and
WHEREAS, pursuant to Section XX of the Statement of Investment Policy, the Investment Policy must be reviewed and approved on an annual basis; and WHEREAS, the City Council has reviewed the Statement of Investment Policy, last amended on May 17, 2022, and desires to approve the Statement of Investment Policy as required by Section XX of the Policy.

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

SECTION 1. The City Council hereby approves the Statement of Investment Policy.

SECTION 2. 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.

ATTACHMENT NO. 5

ATTACHMENT NO. 6
RESOLUTION NO. 2026-94

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, APPROVING THE CITY OF

WEST COVINA STATEMENT OF INVESTMENT POLICY
The City Council of the City of West Covina hereby finds and declares as follows:

WHEREAS, California Government Code Section 53646 permits the City Treasurer or the Chief Fiscal Officer to annually render to the City Council a statement of investment policy, which must be considered at a public meeting; and WHEREAS, California Government Code Section 53600 et seq. provides guidelines and regulations pertaining to investment of temporary idle funds; and WHEREAS, on May 17, 2022, the City Council reviewed and approved the amended City of West Covina Statement of Investment Policy through the adoption of Resolution No. 2022-48; and
WHEREAS, pursuant to Section XX of the Statement of Investment Policy, the Investment Policy must be reviewed and approved on an annual basis; and WHEREAS, the City Council has reviewed the Statement of Investment Policy, last amended on May 17, 2022, and desires to approve the Statement of Investment Policy as required by Section XX of the Policy.

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

SECTION 1. The City Council hereby approves the Statement of Investment Policy.

SECTION 2. 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 August, 2026.

Letty Lopez-Viado
Mayor

APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick, CMC
City Attorney Assistant City Clerk
I, LISA SHERRICK, CMC, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2026-94 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 August, 2026, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick, CMC
Assistant City Clerk
AGENDA ITEM NO. 9

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: August 18, 2026
TO: Mayor and City Council
FROM: Milan Mrakich, City Manager
SUBJECT: CONSIDERATION OF THE THIRD QUARTER FINANCIAL REPORT FOR FISCAL YEAR 2025-26
RECOMMENDATION:

It is recommended that the City Council receive and file the Third Quarter Financial Report for Fiscal Year 2025-26.

BACKGROUND:

This report is intended only to provide the City Council and the public with an overview of the City’s general fiscal condition.  The financial information included in this report is preliminary, unaudited and subject to revision upon completion of the City’s closing and audit.  The City will make the Quarterly Financial Report available on the City’s website for review by the City’s stakeholders.

DISCUSSION:

The Third Quarter Financial Report (Attachment No. 1) summarizes the overall financial performance of the City for the period of July 1, 2025 through March 31, 2026, but it is not meant to be inclusive of all finance and accounting transactions.  While the focus of the report is the General Fund, summary financial information is also provided for the Enterprise Fund and Special Revenue Funds.

The information presented reports revenues as they are received and expenditures when paid.

Revenues and expenditures are only accrued at year-end to account for such activity in the correct fiscal year.

LEGAL REVIEW:

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

Prepared by: Karen Ogawa, Finance Director
Additional Approval: Roxanne E. Lerma, Assistant City Manager Fiscal Impact
FISCAL IMPACT:

This agenda item is a receive and file; therefore, there is no fiscal impact with this action.

Attachments
Attachment No. 1 - Third Quarter Financial Report
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability

CITY OF WEST COVINA

THIRD QUARTER FINANCIAL REPORT
Fiscal Year 2025-26
ATTACHMENT NO. 1
The City has completed the third quarter of Fiscal Year (FY) 2025-26. This report summarizes the overall
financial performance of the City for the period of July 1, 2025, through March 31, 2026, but it is not meant
to be inclusive of all finance and accounting
transactions. While the focus of the report is the
General Fund, summary financial information is also
provided for the Enterprise Fund and Special Revenue
Funds. The information presented is unaudited. This
report is intended to provide City Council and the
public with an overview of the City’s general fiscal
condition.

The revenue and expenditures per the Budget to YearTo-Date (YTD) Actual comparisons include any appropriations made as of March 31, 2026. The
information presented reports revenues as they are
received and expenditures when paid. Revenues and
expenditures are only accrued at year end to account
for such activity in the correct fiscal year.

GENERAL FUND
The General Fund (GF) is the general operating fund
for the City. It provides the resources to sustain the
day-to-day activities and services to the community.

All nine departments receive support, either directly
or indirectly, from the General Fund.

Chart 1: GF Budget vs. YTD Actual
The General Fund original budget for FY 2025-26 was
$97.8 million in revenue, $97.8 million in expenditures and net transfers, for a total net change of fund
balance of $81,657. With only 75% of the year
complete, General Fund revenues are 55.4% of
budget, and expenditures are 67.0%. Total revenues
are $54.3 million, and expenditures are $67.6 million
leaving a total revenue less expenditures negative
$13.3 million.

GENERAL FUND REVENUE
The City’s two major General Fund revenue sources
are Property Tax and Sales Tax which make up 65% of
the General Fund revenues combined. Table 1 below
summarizes revenue to-date.

Table 1:GF Revenue - Budget vs. YTD Actuals

PROPERTY TAX
Included in this line item are Property Taxes, Property In-Lieu of Vehicle License Fees (VLF), and residual
payments from the dissolution of the former
redevelopment agency. The first major property tax
distribution to the City for the fiscal year is received in December.

SALES TAX
As of March 31, 2026, the allocation received
represents approximately 58.4% of the total sales tax
allocation for the year. This is typical for this time of year as there is a two-month lag in sales tax
distributions. The City will continue to receive sales tax allocations with the final quarter allocation distributed by the California State Department of Taxes and Fees
Administration (CDTFA) in August 2026.

Revenue Source Current Budget YTD Actual %
Property Tax 37,345,400 19,123,103 51.2%
Charges for Services 8,957,830 6,896,809 77.0%
Fines & Forfeitures 1,749,600 647,908 37.0%
Interdepartmental Charges 1,196,210 897,158 0.0%
Licenses & Permits 4,101,000 2,205,230 53.8%
Other Revenues 137,400 1,602,105 1166.0%
Other Taxes 10,534,000 5,574,776 52.9%
Revenue from Other Agencies 4,047,000 792,264 19.6%
Sales Tax 26,500,000 15,484,448 58.4%
Use of Money & Property 1,915,000 1,076,436 56.2%
Transfers In/Out 1,555,888 - 0.0%
Grand Total 98,039,328 54,300,235 55.4%
City of West Covina Second Quarter Financial Report FY 2025-26 2 | P a g e

OTHER TAXES
This category includes Franchise Fees, Business
License Tax, Transient Occupancy Tax (TOT), and
Property Transfer Tax. At the end of the third quarter
$5.6 million or 52.9% of the original budget projection has been realized. This is due to a lag in when these
revenues are received. Additionally, these taxes are
not evenly disbursed throughout the year.

CHARGES FOR SERVICES
These revenues include plan check and zoning related
fees, recreation fees, interfund charges, police, and
fire fees. These fees are trending as projected at
approximately 77.0% or $6.9 million through March
2026.

LICENSE & PERMITS
Revenues for licenses & permits include building and
engineering permits, and animal licenses. Revenue
projections are trending slightly under projected at

53.8% of the original budget projection or $2.2 million.

REVENUES FROM OTHER AGENCIES
This category includes Vehicle In-Lieu, State Mandated
Cost reimbursement revenue, the exchange of Prop A
funds, and mutual aid cost reimbursement for strike
team deployments for the Fire Department. Most of
this revenue is received once within the fiscal year.

The Prop A Exchange (which accounts for $2.6 million)
typically does not occur until the end of the fiscal year.

To date the Fire Department has spent over $582k in
mutual aid overtime, this plus an administrative fee
will be reimbursed.

INTERDEPARTMENTAL CHARGES
This category includes overhead chargebacks from
internal service funds: General Liability, Workers
Compensation, and Fleet Maintenance. These charges
are billed monthly and equally distributed.

USE OF MONEY & PROPERTY
This category includes rental and interest income.

These are trending at 56.2% or $1.1 million through
March 2026.

FINES & FORFEITURES
This category includes late payment penalties,
collection agency fees, code fines, vehicle impound
fees, and administrative citations. Overall, fines and
forfeitures are only 37.0% as of end of the quarter.

OTHER REVENUES
This category includes proceeds from auction,
advertising, final map, and other miscellaneous
revenue. At the end of the third quarter, $1.6 million
or 116.6% of the original budget projection has been
realized. Included in this quarter is the $1.5 million for sustainability payment for handling solid waste
disposal.

TRANSFERS IN
This category includes a transfer from the Successor
Agency for administrative costs. This transfer is made
at the end of the fiscal year.

REVENUES PROJECTIONS
Revenue projections (see Table 2) are revised with the
Quarterly Report based on actuals to date.

Table 2: GF Revenue Projection Revenue Source Current Budget Proposed
Adj.

Revised
Projection
Actual
Charges for Services 8,957,830 8,957,830 6,896,809
Fines & Forfeitures 1,749,600 1,749,600 647,908
Interdepartmental Charges 1,196,210 1,196,210 897,158
Licenses & Permits 4,101,000 4,101,000 2,205,230
Other Revenues 137,400 137,400 1,602,105
Other Taxes 10,534,000 10,534,000 5,574,776
Property Tax 37,345,400 37,345,400 19,123,103
Revenue from Other Agencies 4,047,000 4,047,000 792,264 Sales Tax 26,500,000 26,500,000 15,484,448
Use of Money & Property 1,915,000 1,915,000 1,076,436
Transfers In/Out 1,555,888 1,555,888 0
Grand Total 98,039,328 98,039,328 54,300,235
City of West Covina Second Quarter Financial Report FY 2025-26 3 | P a g e

GENERAL FUND EXPENDITURES
As of March 31, 2026, with 75.0% of the year
complete, 67.0% of the General Fund budget was
expensed (see Table 3).

Table 3: GF Expenditures – Budget vs. YTD Actual

GENERAL FUND OVERTIME
Overall, overtime in the General Fund is at 80.5% of
the overall budget. Table 4 summarizes overtime by
department within the General Fund.

Table 4: GF Overtime YTD
Overall, total General Fund Revenue ($54.3M) less
expenditures ($67.6M) for the year is negative $13.3
million. Negative revenue less expenditures is typical
for this time of year due to the lag in property and
sales tax revenue – the City’s primary revenue sources.

Chart 2: GF 3rd Quarter Revenue Less Expenditures by FY

PROPOSED BUDGET AMENDMENT
The original adopted General Fund budget for FY
2025-26 was $97,839,328 for revenues and
$97,757,671 in expenditures, including transfers, for a net change in Fund Balance of $81,657. There are no
General Fund budget amendments proposed for this
quarter.

ENTERPRISE FUND (FUND 375)
This fund accounts for the computer services provided
by the Police Department to other public safety
agencies for a fee. The programs are marketed to both
public and private agencies. The Police Department
also utilizes these products and services. Revenue is
generally billed once annually. Expenditures are
trending under budget (see Table 6).

Table 6: Police Enterprise Budget vs. YTD Actuals
SPORTSPLEX (FUND 242)
This fund accounts for activity at the West Covina
Sportsplex, a recreation facility which amenities
include softball fields, a pavilion, playgrounds, and
restaurants.

Department Current Budget YTD Actual %
Administration 2,650,949 1,934,648 73.0%
City Clerk 448,507 310,629 69.3%
Code Enforcement 1,832,911 90.6% 2,022,514
Community Development 1,081,011 37.8% 2,860,175
Community Services 2,039,074 74.9% 2,721,240
Finance 3,960,407 2,545,944 64.3%
Fire 28,230,595 18,382,174 65.1%
Human Resources 781,331 86.7% 901,100
Police 37,416,154 24,173,311 64.6%
Public Works 3,303,113 58.6% 5,640,641
Transfers 13,985,008 11,220,884 80.2%
Grand Total 100,837,290 67,605,030 67.0%
Department Current Budget YTD GF
Overtime %
Administration 4,706 8,847 188.0%
Community Development 658 1,031 91.5%
Finance 854 781 89.1%
Fire 3,062,612 2,728,731 74.1%
Police 3,597,452 2,666,974 49.5%
Code Enforcement 8,449 4,180 8.9%
Public Works 43,962 3,892 77.8%
Community Services 94,710 73,663 100.0%
Human Resources 1,200 1,020 100.0%
Grand Total 6,814,603 5,489,119 80.5%
Type Current Budget YTD Actual %
Revenue 302,100 667,933 0.0%
Expenditure 718,145 19,281 2.7%
Revenue Less Expenditures(416,045) 648,652
City of West Covina Second Quarter Financial Report FY 2025-26 4 | P a g e
Early in the fiscal year, there were emergency repairs
to the Sportplex tent of approximately $400k of which
insurance covered $268k.

Budget versus actual comparisons for both revenue
and expenditures for the Sportsplex are presented in
Table 7.

Table 7: Sportsplex Budget vs. YTD Actuals

OTHER FUNDS
Table 8 shows a summary of budget versus actuals for
other funds:

Table 8: Other Funds Budget vs. YTD Actuals
Table 8: Other Funds Budget vs. YTD Actuals (continued)

FOR MORE INFORMATION
This summary report is derived from detailed financial
information generated by the City’s Finance
Department. Additional financial information is
available online at www.westcovina.org.

Type
Current
Budget YTD Actual %
Revenue
Charges for Services 240,000 432,097 180.0%
Other Revenues 19,600 - 0.0%
Use of Money & Property 155,800 61,711 39.6%
Transfers In/Out 917,627 - 0.0%
Revenue Total 1,333,027 493,808 Expenditure
Salaries & Benefits 886,027 638,149 72.0%
Materials & Services 447,000 308,432 69.0%
Capital Investments 400,750 402,953 0.0%
Expenditure Total 1,733,777 1,349,534 Revenues less Expenditures (400,750) (855,726) Data Row Labels Sum of Budget Sum of Actual YTD
Assessment Districts
Revenue 4,650,403 2,698,296 0.0%
Expenditure 6,558,758 2,952,454 45.0%
Capital Project Funds
Revenue 729,400 305,737 41.9%
Expenditure 2,193,400 1,253,858 57.2%
CDBG
Revenue 1,356,600 487,785 36.0%
Expenditure 2,792,116 440,452 15.8%
Debt Service
Revenue 14,835,169 11,786,493 79.4%
Expenditure 15,824,955 8,940,167 56.5%
Gas Tax
Revenue 3,073,448 2,008,565 65.4%
Expenditure 2,916,603 1,908,252 65.4%
Grant Funds
Revenue (53,962) 850,769 -1576.6%
Expenditure 680,772 1,915,732 281.4%
Housing Authority
Revenue 217,200 104,146 47.9%
Expenditure 874,424 523,565 59.9%
Data
Row Labels Sum of Budget Sum of Actual YTD
Internal Service Funds
Revenue 10,569,796 6,581,510 62.3%
Expenditure 10,610,086 4,707,926 44.4%
Metro Funds
Revenue 10,648,172 7,530,562 70.7%
Expenditure 15,843,036 3,855,310 24.3%
Other SR Funds
Revenue 4,818,308 3,924,341 81.4%
Expenditure 10,526,447 4,844,224 46.0%
SB1
Revenue 3,637,696 2,287,602 62.9%
Expenditure 4,875,000 188,010 3.9%
Sewer Maintenance
Revenue 4,689,600 2,666,691 0.0%
Expenditure 3,919,232 1,299,190 33.1%
Successor Agency
Revenue 2,915,344 1,372,679 0.0%
Expenditure 3,357,658 1,983,356 59.1%
AGENDA ITEM NO. 10

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: August 18, 2026
TO: Mayor and City Council
FROM: Milan Mrakich, City Manager
SUBJECT: CONSIDERATION OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER RELATED REPORTS FOR THE YEAR ENDED JUNE 30, 2025 RECOMMENDATION:

It is recommended that the City Council receive and file the following financial reports and letters for the year ended June 30, 2025:

Annual Comprehensive Financial Report;
Government Auditing Standards Letter;
Audit Communication Letter; and
Community Financial Report.

BACKGROUND:

Annually, the Finance Department prepares and publishes the City’s Annual Comprehensive Financial Report (“ACFR”) following the completion of an independent and certified audit.  The June 30, 2025 ACFR  is included as Attachment No. 1.  This document is an extensive report summarizing the financial activities of the City that occurred from July 1, 2024 through June 30, 2025.

The ACFR is prepared in compliance with the Governmental Accounting Standards Board (GASB) standards.  Pursuant to GASB guidelines, the City’s 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, 2025.  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 year ended June 30, 2024, to the year ended June 30, 2025.

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 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, 2025 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 2024-25 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 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 2024-25.

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.

LEGAL REVIEW:

The City Attorney’s Office reviewed the staff report.

Prepared by: Karen Ogawa, Finance Director
Additional Approval: Roxanne E. Lerma, Assistant City Manager 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, 2025, the City’s total net position (assets plus deferred outflows of resources less liabilities and less deferred inflows of resources) was $22.7 million.

The City’s total net position increased $9.0 million from the prior year. This is due to various factors.

There is an increase in assets of $11.7 million. The increase is mostly due to cash; there was $4.4 million more in investment income when compared to the prior fiscal year. Additionally, Due from Other Agencies increased by $4.7 million compared to prior year.

In liabilities and deferred inflows of resources, there was a significant decrease due to OPEB related items and OPEB and net pension liabilities which account for a $9.4 million decrease.  Additionally, the lease revenue bonds liabilities decreased by $11.4 million compared to prior year.  Overall, there were positive factors to increase the net position of approximately 9.0 million.

The City’s total governmental funds reported combined ending fund balances of $155.0 million, an increase of $4.7 million in comparison with the prior fiscal year of $150.1 million. The increase is comprised of changes in fund balance, primarily in the General Fund for $2.3 million, non-major Sewer Maintenance fund for $2.9 million, and non-major Measure R fund for $0.6 million. 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 $155.0 million fund balance, $3.2 million, or 2.1%, of this total is non-spendable (not available for new spending). The restricted fund balance categories of $123.4 million, or 79.7%, is spendable for restricted purposes.

The assigned fund balance of $8.0 million, or 5.2%, represents amounts that are intended to be used for specific purposes, but are not formally restricted or committed. The unassigned fund balance category of $20.2 million, or 13.1%, 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 $21.0 million, while total fund balance was $24.1 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 operating expenditures. Unassigned fund balance represents 28.0% of total General Fund operating expenditures, while total fund balance represents

32.2% of that same amount. The non-spendable portion of fund balance in the amount of $3.1 million mainly consists of Land Held for Resale in the amount of $3.0 million.

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 18% of the General Fund operating expenditures. As of June 30, 2025, the General Fund unassigned fund balance is $21.0 million, which is in excess of the 18% operating expenditures of $74.9 million.

Attachments
Attachment No. 1 - Annual Comprehensive Financial Report June 30, 2025 Attachment No. 2 - Government Auditing Standards June 30, 2025 Attachment No. 3 - Audit Communication Letter SAS 114 June 30, 2025 Attachment No. 4 – Community Financial Report June 30, 2025 CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ANNUAL

COMPREHENSIVE
2025

YEAR ENDED
JUNE 30, 2025

CITY OF WEST COVINA, CALIFORNIA
www.westcovina.org

FINANCIAL REPORT
ATTACHMENT NO. 1
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CITY OF WEST COVINA, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2025

Prepared by
Finance Department
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City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2025

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 98
West Covina Housing Authority Special Revenue Fund 99
Proposition A Special Revenue Fund 100
Gas Tax Special Revenue Fund 101
ARPA Special Revenue Fund 102
Notes to Required Supplementary Information 103
Schedule of Changes in the Net Pension Liability - Miscellaneous Plan 104 Schedule of Changes in the Net Pension Liability - Safety Plan 106 Schedule of Changes in the Net Pension Liability - PARS EPMC Plan 108 Schedule of Changes in the Net Pension Liability - PARS Exec Plan 110 Schedule of Contributions 112
Schedule of Changes in the Total OPEB Liability and Related Ratios 114 City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2025
TABLE OF CONTENTS - Continued
Page
Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

Citywide Debt Service Fund 118
Non-major Governmental Funds: 120
Combining Balance Sheet 124
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 132 Budgetary Comparison Schedules for Non-major Funds:

Drug Enforcement Rebate 139
Air Quality Improvement 140
Proposition C 141
Police Donations 142
Transportation Development Act 143
AB939 144
Various Grants 145
Community Development Block Grant 146
Inmate Welfare 147
Public Safety Augmentation 148
COPS/SLESA 149
Maintenance District #1 150
Maintenance District #2 151
Coastal Sage Shrub 152
Maintenance District #4 153
Maintenance District #6 154
Maintenance District #7 155
Citywide Maintenance District 156
Sewer Maintenance 157
Auto Plaza Improvement District 158
General Plan Update 159
Measure W 160
Charter PEG 161
Art in Public Places 162
West Covina Community Services Foundation 163
Measure R 164
Measure M 165
Measure H 166
CASP Training 167
Sportsplex 168
City Capital Projects Fund 169
Construction Tax 170
Information Technology 171
Development Impact Fees 172
Park Development 173
Future Street Improvements 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, 2025
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 203
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 217
Operating Indicators by Function 218
Capital Asset Statistics by Function 220
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INTRODUCTORY SECTION
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1444 West Garvey Avenue South Room 308, West Covina CA 91790 ▪ Office (626) 939-8438 ▪ Fax (626) 939-8664 June 25, 2026
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, 2025. 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.

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, 11 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 $21.0 million as of the end of fiscal year 2024–25. 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.

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 longterm 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.
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13 CITY OF WEST COVINA, CALIFORNIA
1444 W. Garvey Avenue South, West Covina CA 91790

CITY OFFICIALS
JUNE 30, 2025

CITY COUNCIL
Tony Wu, Mayor
Letty Lopez-Viado, Mayor Pro Tem
ROllie Cantos, Councilmember
Rosario Diaz, Councilmember
Brain Gutierrez, Councilmember

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

CITY MANAGER
Milan Mrakich, Acting City Manager

EXECUTIVE MANAGEMENT TEAM
Roxanne Lerma, Assistant City Manager
Nilesh Mehta, Assistant City Manager
Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Karen Ogawa, Finance Director
Greg McKeown, Acting Fire Chief
Tony Cortina, Police Chief
14 City Organizational Chart
Residents of West
Covina
City Clerk
(Elected)
City Council
(Elected) City Manager
Administration
City Clerk's Office
Public Safety
Comm. Services
Comm.

Dev.

Planning
Building
Engineering
Comm. & Econ.

Development
Finance Information Technology
HR/Risk Mgmt.

Fire
Police
Public Works
Assistant City
Manager
Assistant City
Manager/PIO
City Attorney
City Treasurer
(Elected)
15 Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of West Covina
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the 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, 2025, 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 June 25, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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.

June 25, 2026
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, 2025. 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, 2025, the City’s total net position (assets plus deferred outflows of resources less liabilities and less deferred inflows of resources) was $22.7 million.  The City’s total net position increased $9.0 million from the prior year. This is due to various factors. There is an increase in assets of $10.7 million. The increase is mostly due to cash and investments of $4.5 million 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 $3.5 million decrease in deferred inflows of resources.

Additionally, the lease revenue bond liabilities decreased by $6.2 million. Overall, there were positive factors to increase the net position. The net pension liability and related deferred outflows and inflows of resources was the source of an increase to the City’s liabilities of $12.3 million; the net pension liability increased by $4.2 million, offset with a $16.5 million decrease to deferred outflows of resources relating to pension related items.

 The City’s total governmental funds reported combined ending fund balances of $154.8 million, an increase of $4.7 million in comparison with the prior fiscal year of $150.1 million.

The increase is comprised of changes in fund balance, primarily in the General Fund for $2.3 million and non-major Sewer Maintenance fund for $2.9 million. 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 $184.3 million fund balance, $3.2 million, or 2.1%, of this total is non-spendable (not available for new spending). The restricted fund balance categories of $123.4 million, or 79.7%, is spendable for restricted purposes. The assigned fund balance of $8.0 million, or 5.2%, represents amounts that are intended to be used for specific purposes, but are not formally restricted or committed. The unassigned fund balance category of $20.2 million, or 13.1%, 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) 2024-25 of $67,433, compared with a $10,259 operating gain in FY 2023-24. The total net position for the computer service enterprise fund as of June 30, 2025 is $319,525. The net position in the prior year was $252,092.

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:
 The first two statements are government-wide financial statements that provide both longterm and short-term information about the City’s overall financial status. 22  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, 2025, net position for the City was a balance of $22.7 million. Compared to the prior year, the net position of the City increased by $13.7 million.

The City’s net position of $22.7 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, $152.2 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, $113.5 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 $243.3 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 $187.8 million.

The table below reflects the Statement of Net Position for the fiscal year ended June 30, 2025, with the comparative data for the fiscal year ended June 30, 2024:

2025 2024 2025 2024 2025 2024
Assets:

Current and other assets $ 205,044,588 $ 194,364,322 $ 321,040 $ 255,710 $ 205,365,628 $ 194,620,032 Capital assets 189,373,028 188,412,980 - 189,373,028 - 188,412,980 Total assets 394,417,616 382,777,302 321,040 255,710 394,738,656 383,033,012 Deferred Outflows of Resources:

Pension related 25,219,593 41,675,192 - 25,219,593 - 41,675,192 OPEB related 4,662,082 8,003,872 - 4,662,082 - 8,003,872 29,881,675 49,679,064 - 29,881,675 - 49,679,064
Liabilities:

Long-term debt outstanding 367,715,493 382,039,274 - 367,715,493 1,236 382,040,510 Other liabilities 19,153,627 17,960,423 1,485 19,155,112 2,382 17,962,805 Total liabilities 386,869,120 399,999,697 1,485 386,870,605 3,618 400,003,315 Deferred Inflows of Resources:

Pension related 114,879 141,011 - 114,879 - 141,011
OPEB related 8,919,929 12,406,521 - 8,919,929 - 12,406,521 Lease Related 5,991,799 6,412,504 - 5,991,799 - 6,412,504 15,026,607 18,960,036 - 15,026,607 - 18,960,036
Net Position:

Net investment in
capital assets 152,179,186 149,162,351 - 152,179,186 - 149,162,351 Restricted 113,512,929 113,696,248 - 113,512,929 - 113,696,248 Unrestricted (243,288,551) (249,361,966) 319,525 (242,969,026) 252,092 (249,109,874) Total net position $ 22,403,564 $ 13,496,633 $ 319,525 $ 252,092 $ 22,723,089 $ 13,748,725 Statement of Net Position
Table 1
Governmental Activities Business-Type Activities Total
25 Changes in Net Position
The City’s total revenues of $134.7 million for governmental activities are $8.9 million more than the expenses of $125.8 million. Much of the increase is due to a $2.2 million increase in charges for services and $1.8 million increase in property taxes.

A summary of the government-wide statement of activities for the year ended June 30, 2025, with the comparative data for the fiscal year ended June 30, 2024, 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 increased by $2.2 million, primarily due to building permits. The prior year had higher than anticipated construction activity.  Property taxes, the City’s largest revenue source, increased $1.8 million, or 5.1%, primarily due to an increase in the assessed valuation on all classes of property, driven by local real estate market values.
 Sales tax, the City’s second largest revenue source, decreased $1.1 million, or 4.1%, primarily due to slow down in the autos and transportation sector.  Other general revenues decreased by $1.2 million, primarily due to decreased revenue from other agencies.
2025 2024 2025 2024 2025 2024
Revenues
Program revenues:

Charges for services $ 19,614,789 $ 17,389,515 $ 692,994 $ 692,994 $ 20,307,783 $ 18,082,509 Operating contributions and grants 22,557,825 22,201,169 - 22,557,825 - 22,201,169 Capital contributions and grants 14,689,197 15,149,924 - 14,689,197 - 15,149,924 General revenues:

Property taxes 36,859,582 35,055,298 - 36,859,582 - 35,055,298 Sales taxes 25,496,967 26,575,421 - 25,496,967 - 26,575,421 Other taxes 10,082,545 9,884,121 - 10,082,545 - 9,884,121 Other general revenues 5,437,120 6,685,708 - 5,437,120 - 6,685,708 Total revenues 134,738,025 132,941,156 692,994 692,994 135,431,019 133,634,150 Expenses
General government 5,281,216 20,662,676 - 5,281,216 - 20,662,676 Public safety 74,763,499 65,336,608 - 74,763,499 - 65,336,608 Public works 25,345,407 20,428,579 - 25,345,407 - 20,428,579 Community services 10,146,813 11,905,416 - 10,146,813 - 11,905,416 Community development 1,818,455 1,716,136 - 1,818,455 - 1,716,136 Interest expense 8,475,704 8,655,994 - 8,475,704 - 8,655,994 Computer service - 625,561 - 682,735 625,561 682,735
Total expenses 125,831,094 128,705,409 625,561 682,735 126,456,655 129,388,144 Increase (decrease) in net position 8,906,931 4,235,747 67,433 10,259 8,974,364 4,246,006 Beginning net position 13,496,633 6,400,534 252,092 241,833 13,748,725 6,642,367 Restatement of net position - 2,860,352 - - 2,860,352 - Ending net position $ 22,403,564 $ 13,496,633 $ 319,525 $ 252,092 $ 22,723,089 $ 13,748,725 Governmental Activities Business-Type Activities Total
Changes in Net Position
Table 2
26  There was an overall decrease in expenses of $2.9 million. This is primarily due to a decrease in general government activities and public works contracts which is offset by the increase in public safety activities.

Revenues by Source – Governmental Activities
The most significant revenues of the governmental activities are property taxes ($36.9 million), sales tax ($25.5 million) and other taxes ($10.1 million). Program revenues are $57.6 million of the total revenues of the governmental activities, which include charges for services ($19.6 million), operating contributions and grants ($22.5 million), and capital grants and contributions ($14.7 million).

Property taxes

27.4%
Sales taxes

18.9% Other taxes
Other general 7.5%
revenue

4.0%
Charges for
services

14.6%
Operating grants
and contributions

16.7%
Capital grants and
contributions

10.9%
27 Expenses by Function – Governmental Activities
The City’s expenses cover a range of services whose expenses were as follows: Public safety ($74.8 million), public works ($25.3 million), community services ($10.1 million), general government ($5.8 million), interest expense ($8.5 million) and community development ($1.8 million). These expenses include pension related items, claims and capital outlays which are now reflected in the City-wide assets and liabilities.

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 decreased by $57,170, or 8.4%, from the prior fiscal year.

Charges for services and other revenues remained at approximately $693,000 in FY 2024-25.

The changes from the prior year resulted in a slight increase of net position of $57,174. The West Covina Service Group has experienced less sales over the years.

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 $21.0 million, while total fund balance was $24.1 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 28.0% of total general fund expenditures, while total fund balance represents

32.2% of that same amount. The non-spendable portion of fund balance in the amount of $3.1 million mainly consists of Land Held for Resale in the amount of $3.0 million.

Total revenues, exclusive of fund transfers in, increased $3.2 million while total operating expenditures, exclusive of fund transfers out, increased $5.9 million. The reasons for significant changes in the revenues and expenditures of the City’s General Fund from the prior year are as follows:
 Charges for Services were up $2.2 million from prior year. Ambulance Services increase by $1.3 million due to higher volume of emergency medical services.  Property Taxes was up $1.8 million from the prior year, which is primarily due to increased property assessments compared to prior year.
 Sales Tax was down $1.8 million from prior year due to a slowdown in economy.  Public Safety expenditures increased by $5.1 million compared to prior year. Increase primarily due to increase in personnel costs.

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 $12.0 million. The fund holds $19.6 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 $6.8 million. There were $0.33 million more 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 $17.5 million as of June 30, 2025. The fund has $2.1 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 $1.1 million. Budgeted revenues were amended by $3.0 million for projected increase in Sales and Use Taxes and Mutual Aid Cost Reimbursement. Budgeted expenditures were increased $2.0 million primarily due to public safety salaries and benefits.

CAPITAL ASSETS
The major additions to capital assets during the year ended June 30, 2025 were as follows:
 Construction in progress had a net increase of $8.4 million. There were several completed projects including:
 Residential Street Rehabilitation (FY 2023-24) ($4.5 million)  Street Sweeping Signs and Equipment ($1.6 million)
 Pedestrian and Vehicle Safety Improvement (FY 2022-23)($0.64 million) Additional information on the City’s capital assets can be found in Note 6 of this report.

LONG-TERM DEBT
At the end of the current fiscal year, the City had debt outstanding of $367.7 million. Of this amount, $219.5 million represents outstanding bonds and $148.2 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.
2025 2024 2025 2024 2025 2024
Land $ 48,356,495 $ 48,356,495 $ - $ 48, - $ 356,495 $ 48,356,495 Buildings and improvements 72,427,592 75,679,925 - 72, - 427,592 75,679,925 Equipment and vehicles 13,175,415 14,964,313 - 13, - 175,415 14,964,313 Infrastructure 30,873,852 33,255,375 - 30, - 873,852 33,255,375 Rights of way 14,376,498 14,376,498 - 14, - 376,498 14,376,498 Construction in progress 10,163,176 1,780,374 - 10, - 163,176 1,780,374 Total $ 189,373,028 $ 188,412,980 $ - $ - $ 189,373,028 $ 188,412,980 Governmental Activities Business-Type Activities Total
2025 2024 2025 2024 2025 2024
Lease Revenue Bonds $ 219,483,983 $ 225,782,088 $ - $ 219,483,983 - $ $ 225,782,088 Notes Payable 5,789,171 6,368,089 - - 5,789,171 6,368,089 Loans Payable 5,499,859 5,783,541 - - 5,499,859 5,783,541 Compensated Absences 3,762,343 4,448,714 - 1,236 3,762,343 4,449,950 Net Pension Liability 53,747,290 57,913,001 - 53,747,290 - 57,913,001 Total OPEB Liability 56,062,193 57,255,537 - 56,062,193 - 57,255,537 Claims Payable 23,370,654 24,488,304 - 23,370,654 - 24,488,304 Total $ 367,715,493 $ 382,039,274 $ - $ 367,715,493 1,236 $ $ 382,040,510 Governmental Activities Business-type Activities Total
Outstanding Bonds
31 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.
32 BASIC FINANCIAL STATEMENTS
33 Page intentionally left blank.
34 City of West Covina
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments 133,198,430 $ - $ $ 133,198,430
Cash and Investments with Fiscal Agents 19,367,335 - 19, 367,335 Receivables:

Accounts 2,847,656 3, 277,065 124,721
Taxes 6,153,152 - 6, 153,152
Interest 4,636,539 - 4, 636,539
Notes and Loans 14,809,807 - 14, 809,807
Other 3,466,124 - 3, 466,124
Due from Other Agencies 7,930,201 - 7, 930,201
Leases 5,991,799 - 5, 991,799
Internal Balances 258,035 ( - 258,035)
Prepaid Items 113,682 301,980 415,662
Inventory 65,798 - 65,798
Advances to Successor Agency - - -
Land Held for Resale 3,007,802 3, - 007,802
Restricted Cash and Investments 3,198,228 3, - 198,228
Net Pension Asset - - -
Capital Assets, Not Being Depreciated 72,896,169 72, - 896,169 Capital Assets, Net of Accumulated Deprecation 116,476,859 - 116,476,859 Total Assets 394,417,616 321,010 394,738,626

DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 4,662,082 4, - 662,082
Pension Related Items 25,219,593 25, - 219,593
Total Deferred Outflows of Resources 29,881,675 29, - 881,675

LIABILITIES
Accounts Payable 9,351,664 1,386 9,353,050
Other Accrued Liabilities 2,328,199 2, 99 328,298
Interest Payable 2,994,447 2, - 994,447
Deposits Payable 2,388,417 2, - 388,417
Unearned Revenue 2,090,900 2, - 090,900
Noncurrent Liabilities:

Due Within One Year 21,133,388 21, - 133,388
Due in More Than One Year:

Total OPEB Liability 53,404,465 53, - 404,465
Net Pension Liability 53,747,290 53, - 747,290
Notes, Loans, and Bonds Payable 239,430,350 - 239,430,350 Total Liabilities 386,869,120 1,485 386,870,605

DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 8,919,929 8, - 919,929
Pension Related Items 114,879 - 114,879
Lease Related 5,991,799 5, - 991,799
Total Deferred Inflows of Resources 15,026,607 15, - 026,607

NET POSITION
Net Investment in Capital Assets 152,179,186 - 152,179,186 Restricted for:

Affordable Housing 23,041,436 23, - 041,436
Debt Service 20,279,533 20, - 279,533
Pension Trust 16,069 - 16,069
Community Services 5,069,140 5, - 069,140
Public Safety 8,583,070 8, - 583,070
Public Works 56,523,681 56, - 523,681
Unrestricted (243,288,551) 319,525 (242,969,026)
Total Net Position $ 22,403,564 $ 319,525 $ 22,723,089
The accompanying notes are an integral part of this statement. 35 City of West Covina
Statement of Activities
Year Ended June 30, 2025
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:

Governmental Activities:

General Government 5,281,216 $ 845,278 $ 1,723,464 $ 258 $ Public Safety 74,763,499 8,256,868 7,059,843 3,254
Public Works 25,345,407 8,877,986 8,261,011 8,937,849
Community Services 10,146,813 1,634,657 5,513,507 5,654,632 Community Development 1,818,455 - 93,204
Interest on Long-Term Debt 8,475,704 - - -
Total Governmental Activities 125,831,094 19,614,789 22,557,825 14,689,197 Business-type Activities:

Computer Service 625,561 692,994 - -
Total Business-type Activities 625,561 692,994 - -
Total Primary Government 126,456,655 $ 20,307,783 $ 22,557,825 $ 14,689,197 $ 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
Net Position - Ending
Program Revenues
The accompanying notes are an integral part of this statement. 36 Governmental Business-type
Activities Activities Total
$ - (2,712,216) $ (2,712,216) $
- (59,443,534) (59,443,534)
- 731,439 731,439
2,655,983 2,655,983 -
(1,725,251) (1,725,251) -
(8,475,704) (8,475,704) -
(68,969,283) (68,969,283) -
- 67,433 67,433
- 67,433 67,433
(68,969,283) 67,433 (68,901,850)
36,859,582 36,859,582 -
25,496,967 25,496,967 -
5,369,545 5,369,545 -
1,600,168 1,600,168 -
3,112,832 3,112,832 -
1,811,127 1,811,127 -
3,625,993 3,625,993 -
77,876,214 77,876,214 -
8,906,931 67,433 8,974,364
13,496,633 252,092 13,748,725
$ 22,403,564 $ 319,525 $ 22,723,089
Net (Expense) Revenue and Changes in Net Position
37 City of West Covina
Balance Sheet
Governmental Funds
June 30, 2025
West Covina State
Housing Proposition Gas
General Authority A Tax
ASSETS
Cash and Investments $ 13,770,199 $ 7,655,006 $ 3,831,088 $ 7,343,236 Cash and Investments with Fiscal Agent - - - -
Restricted Cash 2,388,417 1,897 - -
Receivables, net:

Accounts 2,616,648 135,451 - -
Taxes 5,070,416 - 258,545 -
Interest 1,097,023 3,473,291 - -
Notes and Loans 11,960,380 - - -
Other 2,850,409 - 526,935 -
Due from Other Agencies - - - -
Leases 5,991,799 - - -
Due from Other Funds 439,089 - - -
Advances to Other Funds 58,153 - - -
Prepaid Items 54,674 - - -
Land Held for Resale 3,007,802 - - -
Total Assets $ 37,344,629 $ 23,090,574 $ 3,966,539 $ 8,128,716

LIABILITIES
Accounts Payable $ 2,564,074 $ 43,747 $ 2,000,000 $ 1,057,095 Accrued Liabilities 1,652,184 5,391 230,782 -
Deposits Payable 2,388,417 - - -
Unearned Revenue 19,572 - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities 6,624,247 49,138 2,000,000 1,287,877

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 599,544 3,473,291 - -
Lease Related 5,991,799 - - -
Total Deferred Inflows of Resources 6,591,343 3,473,291 - -

FUND BALANCE (DEFICITS)
Nonspendable 3,120,629 - - -
Restricted 20,034 19,568,145 1,966,539 6,840,839
Assigned - - - -
Unassigned 20,988,376 - - -
Total Fund Balances (Deficits) 24,129,039 19,568,145 1,966,539 6,840,839 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 37,344,629 $ 23,090,574 $ 3,966,539 $ 8,128,716 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
$ 2,104,292 $ 848,673 $ 80,619,121 $ 116,171,615
19,367,335 - 19,367,335 -
- - 13,636 2,403,950
- - 95,557 2,847,656
- 824,191 - 6,153,152
- 66,225 4,636,539 -
- 2,849,427 - 14,809,807
- - 88,780 3,466,124
- 4,802,754 - 4,802,754
- - 5,991,799 -
- - 439,089 -
- - - 58,153
- - 59,008 113,682
- - 3,007,802 -
$ 2,104,292 $ 20,282,233 $ 89,352,474 $ 184,269,457
$ 32,964 $ 2,700 $ 3,190,333 $ 8,890,913
- 438,045 - 2,326,402
- 2,388,417 -
2,071,328 - 2,090,900 -
- 181,054 - 181,054
- - 58,153 58,153
2,104,292 2,700 3,867,585 15,935,839
- 3,419,684 - 7,492,519
- - 5,991,799 -
- 3,419,684 - 13,484,318
- - 59,008 3,179,637
20,279,533 - 74,741,980 123,417,070
- 8,017,724 - 8,017,724
- (753,507) - 20,234,869
20,279,533 82,065,205 154,849,300 -
$ 2,104,292 $ 20,282,233 $ 89,352,474 $ 184,269,457
39 Page intentionally left blank.
40 Fund balances of governmental funds $ 154,849,300
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 485,466,905
Accumulated Depreciation (296,755,023) 188,711,882
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 7,492,519
Interest Payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the funds. (2,994,447)
Long term liabilities are not due and payable in the current period and are not reported in the funds.

Bonds Payable (including premiums) (219,483,983)
Loans Payable (5,499,859)
Compensated Absences (3,762,343)
Notes Payable (5,789,171)
Net Pension Liability (53,747,290)
Total OPEB Liability (56,062,193)
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 25,219,593
Deferred Inflows Related to Pensions (114,879)
Deferred Outflows Related to OPEB 4,662,082
Deferred Inflows Related to OPEB (8,919,929)
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. (2,157,718)
Net position of governmental activities $ 22,403,564
City of West Covina
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of this statement. 41 West Covina State
Housing Proposition Gas
General Authority A Tax

REVENUES
Taxes 72,857,131 $ - $ 2,966,425 $ 2,990,203 $
Special Assessments - - - -
Licenses and Permits 2,553,750 - - -
Fines and Forfeitures 844,646 - - -
Investment Income 1,841,289 316,737 72,350 252,874
Rental Income 1,002,837 - - -
Revenue from Other Agencies 2,842,527 - - 3,033,473
Charges for Services 9,820,742 - - -
Other Revenues 1,712,631 25,050 - -
Total Revenues 93,475,553 341,787 3,038,775 6,276,550

EXPENDITURES
Current:

General Government 5,409,825 8,577 - 3,500
Public Safety 59,648,364 - - -
Public Works 6,430,870 25,564 - 7,956,196
Community Services 2,637,555 2,047,639 1,701
Community Development 752,601 638,635 - 535
Debt Service:

Principal - - - -
Interest - - - -
Total Expenditures 74,879,215 672,776 2,047,639 7,961,932 Excess (Deficiency) of Revenues
over Expenditures 18,596,338 (330,989) 991,136 (1,685,382)

OTHER FINANCING SOURCES (USES)
Transfer In - - 13,354 567,200
Transfer Out (16,326,236) - - -
Total Other Financing Sources (Uses) (16,326,236) - 13,354 567,200 Net Change in Fund Balances 2,270,102 (330,989) 1,004,490 (1,118,182) Fund Balances, Beginning 21,858,937 19,899,134 962,049 7,959,021 Fund Balances, Ending $ 24,129,039 $ 19,568,145 $ 1,966,539 $ 6,840,839 City of West Covina
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2025
Special Revenue
42 Special
Revenue Debt Service
Non-major
Governmental
ARPA Citywide Debt Funds Total
$ - - $ 10,353,149 $ 89,166,908 $
- - 7,270,219 7,270,219
- - - 2,553,750
- - - 844,646
1,186,435 - 2,071,078 5,740,763
- - 563,571 1,566,408
1,723,464 1,345,484 4,269,354 13,214,302
- 193,603 - 10,014,345
- 1,241,124 - 2,978,805
1,723,464 2,531,919 25,962,098 133,350,146
864,737 10,000 197,686 6,494,325
- 3,781,122 - 63,429,486
801,852 15,688,222 - 30,902,704
3,936,145 56,875 8,679,915
- 426,684 - 1,818,455
7,107,600 - 7,107,600 -
8,570,842 - 8,570,842 -
1,723,464 15,688,442 24,029,859 127,003,327
(13,156,523) - 1,932,239 6,346,819
13,317,096 - 797,217 14,694,867
- - (16,326,236) -
13,317,096 - 797,217 (1,631,369)
160,573 - 2,729,456 4,715,450
20,118,960 - 79,335,749 150,133,850
$ 20,279,533 - $ $ 82,065,205 $ 154,849,300
The accompanying notes are an integral part of this statement. 43 Net change in fund balances-total governmental funds $ 4,715,450 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 9,794,615
Depreciation Expense (8,603,280)
Loss on Disposal (110,445)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 1,374,392 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 6,245,000
Principal Paid on Loans Payable 283,682
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. 55,520 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 678,679
Net Change in Net Pension Liability 4,165,711
Net Change in Total OPEB Liability 1,193,344
Net Change in Deferred Outflows Pension Related Amounts (16,455,599) Net Change in Deferred Inflows Pension Related Amounts 26,132 Net Change in Deferred Outflows OPEB Related Amounts (3,341,790) Net Change in Deferred Inflows OPEB Related Amounts 3,486,592 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. 4,766,905
Change in net position of governmental activities $ 8,906,931 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, 2025
The accompanying notes are an integral part of this statement. 44 City of West Covina
Statement of Net Position
Proprietary Funds
June 30, 2025
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
ASSETS
Current Assets:

Cash and Investments $ 17,026,815 - $
Restricted Cash and Investments - 794,278
Accounts Receivable, Net - 277,065
Due from Other Agencies - 3,127,447
Prepaids - 301,980
Inventories 65,798 -
Total Current Assets 579,045 21,014,338
Noncurrent Assets:

Capital Assets, Net of Accumulated Depreciation - 661,146 Total Noncurrent Assets 661,146 -
Total Assets 21,675,484 579,045

LIABILITIES
Current Liabilities:

Accounts Payable 460,751 1,386
Other Accrued Liabilities 99 1,797
Due to Other Funds 258,035 -
Current Portion of Long-Term Liabilities:

Compensated Absences - -
Claims Payable 7,578,180 -
Total Current Liabilities 259,520 8,040,728
Noncurrent Liabilities:

Compensated Absences - -
Claims Payable 15,792,474 -
Total Noncurrent Liabilities - 15,792,474
Total Liabilities 23,833,202 259,520

NET POSITION
Net Investment in Capital Assets - 661,146
Unrestricted (2,818,864) 319,525
Total Net Position 319,525 $ (2,157,718) $
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, 2025
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds

OPERATING REVENUES
Charges for Services 692,994 $ 8,509,386 $
Other Revenues - 3,923,233
Total Operating Revenue 692,994 12,432,619

OPERATING EXPENSES
Personnel Services 4,073 150,021
Cost of Sales, Services, and Operations 621,488 1,416,513 Depreciation - 233,888
Insurance and Claims Paid - 7,579,123
Total Operating Expenses 625,561 9,379,545
Operating Income (Loss) 67,433 3,053,074

NONOPERATING REVENUES (EXPENSES)
Investment Income - 82,462
Gain/ (Loss) on Disposal of Capital Assets - -
Total Nonoperating Revenues (Expenses) - 82,462
Income Before Contributions and Transfers 67,433 3,135,536 Transfers In - 1,631,369
Transfers Out - -
Change in Net Position 67,433 4,766,905
Total Net Position, Beginning 252,092 (6,924,623)
Total Net Position, Ending 319,525 $ (2,157,718) $
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, 2025
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
Cash Flows from Operating Activities
Cash Received from Customers 680,634 $ - $
Cash Received from User Departments - 10,611,178
Cash Paid to Suppliers for Goods and Services (728,125) (10,316,176) Cash Paid to Employees for Services (5,522) (156,968)
Net Cash from Operating Activities (53,013) 138,034
Cash Flows from Noncapital Financing Activities
Cash Received (Paid to) Other Funds 53,013 1,631,369
Net Cash from Noncapital Financing Activities 53,013 1,631,369 Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets (113,046) - Net Cash from Capital and Related Financing Activities (113,046) - Cash Flows from Investing Activities
Interest on Investments - 82,462
Net Cash from Investing Activities - 82,462
Net Increase (Decrease) in Cash and Cash Equivalents 1,738,819 Cash and Cash Equivalents, Beginning of Year - 16,082,274 Cash and Cash Equivalents, End of Year $ 17,821,093 - $ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating income (loss) $ 3,053,074 67,433 $
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation - 233,888
Other Revenues - -
(Increase) Decrease in Accounts Receivable (12,360) (1,821,441) (Increase) Decrease in Due from Other Agencies - -
(Increase) Decrease in Inventory and Prepaid Items (105,953) (4,657) Increase (Decrease) in Accounts Payable (684) (198,233) Increase (Decrease) in Accrued Liabilities (213) 745
Increase (Decrease) in Compensated Absences (1,236) (7,692) Increase (Decrease) in Claims and Judgments - (1,117,650) Net Cash Provided (Used) by Operating Activities (53,013) $ 138,034 $ The accompanying notes are an integral part of this statement. 47 Successor
Agency
Private-purpose
Trust Fund
ASSETS
Cash and Investments 1,468,658 $
Cash and Investments with Fiscal Agents 1,514,354
Restricted Cash and Investments 6,514,513
Receivables, Net:

Interest 47,765
Assessments -
Due from City of West Covina 5,789,171
Land Held for Resale 54,279
Total Assets 15,388,740

LIABILITIES
Accounts Payable 1,450
Accrued Liabilities -
Interest Payable 31,287
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 89,712,528
Total Liabilities 97,502,045

NET POSITION
Held in Trust for:

Successor Agency (82,113,305)
$ (82,113,305)
City of West Covina
Statement of Net Position
Fiduciary Funds
June 30, 2025
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 2,511,403 $
Investment Earnings:

Interest Income 138,773
Rental Income 37,500
Total Additions 2,687,676

DEDUCTIONS
Program Administration 1,521,667
Administrative Costs 154,999
Interest and Fiscal Charges 87,756
Total Deductions 1,764,422
Change in Net Position 923,254
Net Position, Beginning of Year (83,036,559)
Net Position, End of Year (82,113,305 $ )
City of West Covina
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2025
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, 2025
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, 2025
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, 2025
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, 2025
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, 2025
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, 2025
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) Inventory
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, 2025
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, 2025
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, 2025
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, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
The following timeframes are used for PARS:

Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
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, 2024 Measurement Date; and July 1, 2023 through June 30, 2024 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, 2025
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, 2025
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, 2025
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 are classified in the accompanying financial statements as follows:

Cash and investments as of June 30, 2025 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 133,198,430 $
Cash and Investments with Fiscal Agents 19,367,335
Restricted Cash and Investments 3,198,228
Statement of Fiduciary Net Position:

Cash and Investments 1,468,658
Cash and Investments with Fiscal Agents 1,514,354
Restricted Cash and Investments 6,514,513
Total Cash and Investments 165,261,518 $
Cash on Hand $ 17,561
Deposits with Financial Institutions 31,638,648
Investments 133,605,309
Total Cash and Investments 165,261,518 $
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, 2025
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, 2025
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 35,660,351 $ 35,660,351 $ $ - $ - Local Agency Investment Fund 77,063,269 77,063,269 - -
Held by Bond Trustees:

Money Market Mutual Funds 20,881,689 20,881,689 - -
Total $ 133,605,309 $ 133,605,309 $ - $ -
Remaining Maturity (in Months)
Minimum
Investment Type Amount Legal Rating AAA Unrated
Los Angeles County Investment Pool 35,660,351 $ N/A - $ 35,660,351 $ Local Agency Investment Fund 77,063,269 N/A 77,063,269 - Held by Bond Trustees:

Money Market Mutual Funds 20,881,689 A 20,881,689 -
Total $ 133,605,309 $ 20,881,689 $ 112,723,620
64 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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 $181,054 to non-major governmental funds, and $258,035 to the enterprise fund to cover temporary cash deficits.
65 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS - Continued Advances to/from
Advances of $58,153 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, 2025 are as follows:

The General Fund transferred $13,354 to the Proposition A Fund for various expenditures, $567,200 to the State Gas Tax Fund for an SB1 project. The General Fund transferred $13,317,096 to the Citywide Debt Service Fund for debt service payments. The General Fund transferred $797,217 to the Non-major Governmental Funds for various projects and operating expenditures. The General Fund transferred $1,631,369 to the Internal Service Fund for deficits in the self-insurance fund.
4) NOTES AND LOANS RECEIVABLE

The following notes and loans receivable were outstanding as of June 30, 2025:

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 $95,260. 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 42% of the balance in the allowance for doubtful accounts.

State Non-major Internal
General Prop A Gas Tax Citywide Governmental Service
TRANSFERS OUT Fund Fund Fund Debt Funds Funds Total
General Fund $ 13,354 - $ $ 567,200 $ 13,317,096 $ 797,217 $ 1,631,369 $ 16,326,236 $ 13,354 - $ $ 567,200 $ 13,317,096 $ 797,217 $ 1,631,369 $ 16,326,236

TRANSFERS IN
Housing Rehabilitation $ 338,838
First Time Homebuyer Loans 95,260
Housing Preservation Program 756,516
Home Improvement Program 642,627
Lark Ellen Towers 4,241,110
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 3,442,529
Other Loans 608,196
Less: Allowance for Doubtful Accounts (12,638,165)
Total Governmental Funds $ 14,809,807
66 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
4) NOTES AND LOANS RECEIVABLE - Continued
The Housing Authority also has housing preservation loans to qualified applicants using housing set-aside funds totaling $756,516. 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 $642,627 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, 2025 was $4,241,110.

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, 2025 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, 2025 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, 2025 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 $3,442,529 using Community Development Block Grant funds.

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, 2025 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, 2025 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, 2025
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 1,780,374 9,400,391 (1,017,589) 10,163,176 Total Capital Assets, Not
Being Depreciated 64,513,367 9,400,391 (1,017,589) 72,896,169 Capital Assets Being Depreciated:

Buildings and Improvements 134,458,882 - 134,458,882 -
Equipment and Vehicles 48,728,867 1,524,859 (173,316) 50,080,410 Infrastructure - Pavement 205,732,298 - 205,732,298 -
Infrastructure - Other 26,236,292 - 26,236,292 -
Total Capital Assets Being
Depreciated 415,156,339 1,524,859 (173,316) 416,507,882 Less Accumulated Depreciation:

Buildings and Improvements (58,778,957) (3,252,333) (62,031,290) - Equipment and Vehicles (33,764,554) (3,203,312) 62,871 (36,904,995) Infrastructure - Pavement (178,487,389) (1,955,602) (180,442,991) - Infrastructure - Other (20,225,826) (425,921) (20,651,747) - Total Accumulated Depreciation (291,256,726) (8,837,168) (300,031,023) 62,871 Net Capital Assets Being Depreciated 123,899,613 (7,312,309) (110,445) 116,476,859 Governmental Activities, Capital Assets 188,412,980 $ $ 2,088,082 $ (1,128,034) $ 189,373,028 General Government $ 167,004
Public Safety 3,076,393
Public Works 4,126,873
Community Services 1,466,898
$ 8,837,168
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, 2025
7) LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2025 are as follows:

The liabilities 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, 2025 was $5,789,171. 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 $ 6,368,089 $ (578,918) - $ $ 5,789,171 $ 578,918 Loans Payable 5,783,541 (283,682) - 5,499,859 307,696
2006 Lease Revenue Bonds 12,945,000 (730,000) - 12,215,000 770,000 2018 Lease Revenue Bonds 19,460,000 (990,000) - 18,470,000 1,040,000 Premium on Bonds 1,062,088 - (53,105) 1,008,983 53,105
2020 Lease Revenue Bonds 192,315,000 (4,525,000) - 187,790,000 4,560,000 Compensated Absences 4,448,714 (686,371) - 3,762,343 3,587,761 Net Pension Liability 57,913,001 (4,165,711) - 53,747,290 - Total OPEB Liability 57,255,537 (1,193,344) - 56,062,193 2,657,728 Claims Payable 24,488,304 6,226,540 (7,344,190) 23,370,654 7,578,180 Total $ 382,039,274 $ 6,226,540 $ (20,550,321) $ 367,715,493 $ 21,133,388 Business-type Activities:

Compensated Absences $ 1,236 $ - $ (1,236) $ - $ -
Total $ 1,236 $ - $ (1,236) $ - $ -
Fiscal Year Ending
June 30, Principal Interest Total
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 578,918 154,215 733,133
2031 - 2035 2,894,581 349,856 3,244,437
Totals 5,789,171 $ 1,182,225 $ 6,971,396 $
69 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025. The outstanding principal balance as of June 30, 2025 was $12,215,000.

The following represents the future annual debt service requirements:

Fiscal Year Ending
June 30, Principal Interest Total
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 343,591 140,619 484,210
2031 - 2035 1,928,324 525,935 2,454,259
2036 - 2040 1,622,020 201,035 1,823,055
2041 341,690 31,027 372,717
Totals 5,499,860 $ 1,565,511 $ 7,065,371 $
70 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025. The outstanding principal balance as of June 30, 2025 was $18,470,000.

The following represents the future annual debt service requirements:

Fiscal Year Ending
June 30, Principal Interest Total
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 12,215,000 $ 4,506,292 $ 16,721,292 $
Fiscal Year Ending
June 30, Principal Interest Total
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 1,230,000 610,995 1,840,995
2031 - 2035 7,075,000 2,099,750 9,174,750
2036 - 2040 5,245,000 541,000 5,786,000
2041 - 2044 470,000 48,000 518,000
Total $ 18,470,000 $ 6,281,351 $ 24,751,351
71 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025. The outstanding principal balance as of June 30, 2025 was $187,790,000. 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 $3,762,343 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.
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
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 6,060,000 6,137,193 12,197,193
2031 - 2035 37,405,000 27,342,009 64,747,009
2036 - 2040 52,325,000 19,165,988 71,490,988
2041 - 2045 71,625,000 7,307,717 78,932,717
Total 187,790,000 $ $ 86,032,477 $ 273,822,477
72 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025
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 2024-25.

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 $23,370,654 as of June 30, 2025.

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
2025 24,488,304 $ 6,226,540 $ 7,344,190 $ 23,370,654 $
2024 20,511,381 $ 8,411,243 $ 4,434,320 $ 24,488,304 $
74 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025, are presented below:
11) DEFICIT FUND BALANCES
The Community Services Foundation non-major governmental fund had an unassigned fund balance deficit of $753,507 at June 30, 2025. 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 $ 54,674 $ - $ - $ - $ - $ 59,008 - $ $ 113,682 Advances to Other Funds 58,153 - - - - - 58,153 -
Land Held for Resale 3,007,802 - - - - - 3,007,802 -
Restricted for:

Affordable Housing 19,568,145 - - - - - 19,568,145 -
Debt Service - - - - 20,279,533 - 20,279,533 -
Pension Trust 20,034 - - - . - 20,034 -
Community Services - - - - - 5,568,860 - 5,568,860
Public Safety - - - - - 8,583,070 - 8,583,070
Public Works - 1,966,539 - 6,840,839 - 60,590,050 - 69,397,428 Assigned:

Capital Improvement - - - - - 8,017,724 - 8,017,724
Unassigned 20,988,376 - - - - (753,507) - 20,234,869
Total Fund Balances $ 24,129,039 $ 19,568,145 $ 1,966,539 $ 6,840,839 $ 20,279,533 - $ $ 82,065,205 $ 154,849,300 75 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2023 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, 2025, are summarized as follows:

Miscellaneous Safety
Plan Plan EPMC EXEC Total
Deferred Outflows of Resources 5,244,544 $ 19, $ 742,486 $ 134,164 $ 98,399 $ 25,219,593 Deferred Inflows of Resources - - 114,879 - 114,879
Pension Liability/(Asset) 15,579,051 33,415,642 1,013,494 3,739,103 53,747,290 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 9.71% 9.71% 9.71% 9.71% Miscellaneous
76 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025 (June 30, 2023 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, 2023, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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 22.10% 22.10% 22.10% (1) - Depending on years of service
Safety
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 463 366
Inactive employees entitled to but not yet
receiving benefits 320 81
Active employees 130 164
Total 913 611
77 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
13) EMPLOYEE RETIREMENT PLANS – Continued
Actuarial Assumptions: The total pension liabilities in the June 30, 2023 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, 2023
Measurement date June 30, 2024
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, 2025
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, 2023 (June 30, 2024 reporting date) 173,842,530 $ $ 158,111,696 $ 15,730,834 Changes in the year:

Service cost 1,436,195 1,436,195 -
Interest on the total pension liability 11,832,339 11,832,339 - Differences between expected and actual experience 2,600,261 2,600,261 - Changes of benefit terms - - -
Contributions from the employer 875,331 - (875,331)
Contributions from employees 701,939 - (701,939)
Net investment income 14,571,964 - (14,571,964)
Benefit payments, including refunds (11,355,436) (11,355,436) - Administrative/other expense (128,656) - 128,656
Net changes 4,513,359 4,665,142 (151,783)
Balance at June 30, 2024 (June 30, 2025 reporting date) 178,355,889 $ $ 162,776,838 $ 15,579,051 Miscellaneous
Increase (Decrease)
79 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025, the City recognized pension expense/(income) of $4,624,499 for the Miscellaneous Plan and $15,300,666 for the Safety Plan. At June 30, 2025, 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, 2023 (June 30, 2024 reporting date) 462,938,721 $ $ 425,615,287 $ 37,323,434 Changes in the year:

Service cost 6,947,459 6,947,459 -
Interest on the total pension liability 31,587,096 31,587,096 - Differences between expected and actual experience 4,498,742 4,498,742 - Changes of benefit terms - - -
Contributions from the employer 4,985,321 - (4,985,321) Contributions from employees 2,633,790 - (2,633,790)
Net investment income 39,668,302 - (39,668,302)
Benefit payments, including refunds (26,254,378) (26,254,378) - Administrative/other expense (346,324) - 346,324
Net changes 16,778,919 20,686,711 (3,907,792)
Balance at June 30, 2024 (June 30, 2025 reporting date) 479,717,640 $ $ 446,301,998 $ 33,415,642 Increase (Decrease)
Safety
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability/(Asset) 37,169,581 $ 96,557,410 $ Current Discount Rate 6.90% 6.90%
Net Pension Liability/(Asset) 15,579,051 $ 33,415,642 $ 1% Increase 7.90% 7.90%
Net Pension Liability/(Asset) (2,268,842) $ (18,418,022) $ 80 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
13) EMPLOYEE RETIREMENT PLANS – Continued
The $1,447,012 and $6,140,085 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, 2026. 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, 2025.
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 1,447,012 $ - $ 6,140,085 $ - $ Differences between actual and expected experience 1,070,696 - 5,420,138 - Changes in assumptions - - 1,333,383 -
Net differences between projected and actual
earnings on plan investments 2,726,836 - 6,848,880 -
Total 5,244,544 $ - $ 19,742,486 $ - $
Miscellaneous Safety
Year Ending
June 30, Miscellaneous Safety
2026 692,260 $ 2,913,817 $
2027 4,492,920 13,840,901
2028 (583,153) (956,689)
2029 (804,495) (2,195,628)
2030 - -
Thereafter - -
Deferred Outflows/Inflows of
Resources, Net
81 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025
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, 2024, 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.

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 performs complex projections of future benefit payments and asset values.

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, 2024
Actuarial cost method entry-age normal
Actuarial assumptions:

Discount rate 3.96% at June 30, 2024

3.70% at June 30, 2023
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, 2025
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, 2024, measurement date (3.93%) was used. The discount rate used (3.96%) 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 3.96% 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, 2025
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, 2025, the City recognized pension expense of $72,596 for the Plan. At June 30, 2025, 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, 2023 (June 30, 2024 reporting date) 1,053,95 $ 31,135 6 $ 1,022,821 $ Changes in the year:

Service cost 25,281 - 25,281
Interest on the total pension liability 39,425 - 39,425 Changes of benefit terms - - -
Differences between expected and actual experience - - - Changes in assumptions (25,498) - (25,498)
Contributions from the employer - 44,098 (44,098)
Net investment income - 4,722 (4,722)
Benefit payments, including refunds (27,374) (27,374) - Administrative/other expense - (285) 285
Net changes 11,834 21,161 (9,327)
Balance at June 30, 2024 (June 30, 2025 reporting date) 1,065,79 $ 52,296 0 $ 1,013,494 $ Increase (Decrease)
1% Decrease 2.96%
Net Pension Liability $ 1,118,639
Current Discount Rate 3.96%
Net Pension Liability $ 1,013,494
1% Increase 4.96%
Net Pension Liability $ 925,606
85 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The $50,261 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, 2026.

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, 2025.

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 50,261 $ - $ Differences between actual and expected experience 14,625 18,576 Changes in assumptions 69,278 96,245
Net differences between projected and actual
earnings on plan investments - 58
Total 134,164 $ 114,879 $
Year Ending
June 30, EPMC
2026 $ 7,907
2027 (8,367)
2028 (27,675)
2029 (2,841)
2030 -
Thereafter -
86 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025 was $94,198.

Employees Covered
At June 30, 2023, the actuarial 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, 2024, 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.

Supplemental
Inactive employees or beneficiaries
currently receiving benefits 11
Active employees 1
Total 12
Supplemental
Valuation date June 30, 2023
Measurement date June 30, 2024
Actuarial cost method entry-age normal, closed to
new entrants
Actuarial assumptions:

Discount rate 3.94% at June 30, 2024

3.67% at June 30, 2023
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, 2025
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, 2024, measurement date, (3.93%) was used. The discount rate used (3.94%) 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, 2025
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, 2024, 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:

For the year ended June 30, 2025, the City recognized pension expense/(credit) of ($2,449). At June 30, 2025, 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, 2023 (June 30, 2024 reporting date) 4,071,79 $ 235,886 8 $ 3,835,912 $ Changes in the year:

Service cost - - -
Interest on the total pension liability 146,119 - 146,119 Changes of benefit terms - - -
Differences between expected and actual experience - - - Changes in assumptions (139,559) - (139,559)
Contributions from the employer - 86,183 (86,183)
Net investment income - 18,589 (18,589)
Benefit payments, including refunds (180,714) (180,714) - Administrative/other expense - (1,403) 1,403
Net changes (174,154) (77,345) (96,809)
Balance at June 30, 2024 (June 30, 2025 reporting date) 3,897,64 $ 158,541 4 $ 3,739,103 $ Increase (Decrease)
1% Decrease 2.94%
Net Pension Liability $ 4,298,002
Current Discount Rate 3.94%
Net Pension Liability $ 3,739,103
1% Increase 4.94%
Net Pension Liability $ 3,283,868
89 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
14) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The $94,198 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, 2026.

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, 2025.
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 94,198 $ - $ Net differences between projected and actual
earnings on plan investments 4,201 -
Total 98,399 $ - $
Year Ending
June 30, Supplemental
2026 $ (2,976)
2027 11,223
2028 (2,427)
2029 (1,619)
2030 -
Thereafter -
90 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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 ($157 and $158 per month in calendar years 2024 and 2025, 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 ($157 and $158 per month in calendar years 2024 and 2025, respectively) for employees hired after July 1, 2012
 Miscellaneous:
o PEMHCA minimum amount ($157 and $158 per month in calendar years 2024 and 2025, 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, 2024 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Active Employees 294
Inactive employees entitled to, but not yet receiving benefits 5 Retirees or spouses of retirees currently receiving benefits 279 Total 578
91 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025, the City contributed $2,657,728 to the plan, including $2,212,728, for current premiums (100% of total premiums), and $445,000 of implied subsidy premiums.

Total OPEB Liability - The City’s total OPEB liability was measured as of June 30, 2024 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 3.93% at June 30, 2024.

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 2025, 3.45% ultimate Medicare (non-Kaiser) - 6.90% for 2025, 3.45% ultimate
Medicare (Kaiser) - 5.65% for 2025, 3.45% ultimate
PEMHCA Minimum Increase 3.5% Annually
Inflation Rate 2.50%
Salary Changes 2.75%
Discount Rate 3.93% at June 30, 2024

3.65% at June 30, 2023
Total OPEB
Liability (TOL)
Balance at June 30, 2024 (2023 Measurement Date) $ 57,255,537 Changes in the year:

Service cost 1,245,805
Interest on the total OPEB liability 2,088,882
Differences between expected and actual experience -
Changes of assumptions (1,984,632)
Benefit payments, including refunds (2,543,399)
Net changes (1,193,344)
Balance at June 30, 2025 (2024 Measurement Date) $ 56,062,193 Discount Rate Valuation Discount Rate
1% Lower Discount Rate 1% Higher
Total OPEB liability (asset) 63,700,126 $ 56,062,193 $ 49,799,018 $ 92 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2024 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, 2025, the City recognized OPEB expense/(credit) of $1,319,582. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

The $2,657,728 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2026. 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) 53,665,633 $ 56,062,193 $ 58,610,195 $ Deferred Deferred
Outflows Inflows
OPEB Contributions Subsequent to the Measurement Date 2,657,728 $ - $ Changes of Assumptions 265,791 7,180,185
Net differences between expected
and actual experience 1,738,563 1,739,744
Total 4,662,082 $ 8,919,929 $
Year Ending
June 30,
2026 $ (4,520,585)
2027 (2,053,574)
2028 91,769
2029 (220,548)
2030 (212,637)
Thereafter -
93 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2025
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, 2025
18) SUCCESSOR AGENCY DISCLOSURES – Continued
The City reported a long-term liability of $5,789,171 (reported as part of notes payable) in governmental activities and a receivable of $5,789,171 in the Successor Agency related to the DOF’s determination at June 30, 2025.

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, 2025 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, 2025. The principal balance of outstanding bonds at June 30, 2025 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, 2025
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, 2025 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, 2025, 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, 2025, the City’s receivable for lease payments was $5,991,709. 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, 2025, the balance of the deferred inflow of resources was $5,991,709.

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 REQUIRED SUPPLEMENTARY INFORMATION
97 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 71,415,600 $ 73,078,600 $ 72,857,131 $ (221,469) $ Licenses and Permits 2,793,300 2,793,300 2,553,750 (239,550) Fines and Forfeitures 900,000 900,000 844,646 (55,354)
Investment Income 1,134,000 1,134,000 1,841,289 707,289 Rental Income 1,226,500 1,226,500 1,002,837 (223,663)
Revenue from Other Agencies 2,166,087 2,256,942 2,842,527 585,585 Charges for Services 9,241,800 9,416,800 9,820,742 403,942 Other Revenues 1,350,795 2,457,295 1,712,631 (744,664)
Total Revenues 90,228,082 93,263,437 93,475,553 212,116

EXPENDITURES
Current:

General Government 5,866,752 5,795,541 5,409,825 385,716 Public Safety 58,170,493 60,757,237 59,648,364 1,108,873 Public Works 6,954,558 6,787,064 6,430,870 356,194
Community Services 3,241,730 2,841,065 2,637,555 203,510 Community Development 729,628 762,645 752,601 10,044
Total Expenditures 74,963,161 76,943,552 74,879,215 2,064,337 Excess (Deficiency) of Revenues
over Expenditures 15,264,921 16,319,885 18,596,338 2,276,453

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out (15,263,586) (17,110,577) (16,326,236) 784,341 Total Other Financing Sources (Uses) (15,263,586) (17,110,577) (16,326,236) 784,341 Net Change in Fund Balances 1,335 (790,692) 2,270,102 3,060,794 Fund Balances, Beginning 21,858,937 21,858,937 21,858,937 - Fund Balances, Ending 21,860,272 $ 21,068,245 $ 24,129,039 $ 3,060,794 $ City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2025
Budgeted Amounts
98 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Income 174,000 $ 174,000 $ 316,737 $ 142,737 $ Other Revenues - - 25,050 25,050
Total Revenues 174,000 174,000 341,787 167,787

EXPENDITURES
Current:

General Government - - 8,577 (8,577)
Public Works 20,500 25,564 25,564 -
Community Development 863,956 858,892 638,635 220,257
Total Expenditures 884,456 884,456 672,776 211,680
Excess (Deficiency) of Revenues
over Expenditures (710,456) (710,456) (330,989) 379,467

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance (710,456) (710,456) (330,989) 379,467 Fund Balance, Beginning, Restated 19,899,134 19,899,134 19,899,134 - Fund Balance, Ending $ 19,188,678 $ 19,188,678 $ 19,568,145 $ 379,467 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, 2025
Budgeted Amounts
99 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 3,034,660 $ 3,034,660 $ 2,966,425 $ (68,235) $
Investment Income 27,600 27,600 72,350 44,750
Total Revenues 3,062,260 3,062,260 3,038,775 (23,485)

EXPENDITURES
Current:

General Government - - - -
Public Works - - - -
Community Services 2,425,935 2,425,935 2,047,639 378,296 Total Expenditures 2,425,935 2,425,935 2,047,639 378,296 Excess (Deficiency) of Revenues
over Expenditures 636,325 636,325 991,136 354,811

OTHER FINANCING SOURCES (USES)
Transfers In - - 13,354 13,354
Transfers Out - - - -
Total Other Financing Sources (Uses) - - 13,354 13,354
Net Change in Fund Balance 636,325 636,325 1,004,490 368,165 Fund Balance, Beginning 962,049 962,049 962,049 -
Fund Balance, Ending $ 1,598,374 $ 1,598,374 $ 1,966,539 $ 368,165 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, 2025
Budgeted Amounts
100
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 2,805,101 $ 2,805,101 $ 2,990,203 $ 185,102 $
Investment Income 140,700 140,700 252,874 112,174
Revenue from Other Agencies 2,981,527 2,981,527 3,033,473 51,946 Charges for Services - - -
Total Revenues 5,927,328 5,927,328 6,276,550 349,222

EXPENDITURES
Current:

General Government - 3,500 3,500 -
Public Works 8,244,984 13,473,258 7,956,196 5,517,062
Community Services 9,194 9,194 1,701 7,493
Community Development 1,649 1,649 535 1,114
Total Expenditures 8,255,827 13,487,601 7,961,932 5,525,669 Excess (Deficiency) of Revenues
over Expenditures (2,328,499) (7,560,273) (1,685,382) 5,874,891

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 (1,761,299) (6,993,073) (1,118,182) 5,874,891 Fund Balance, Beginning 7,959,021 7,959,021 7,959,021 - Fund Balance, Ending $ 6,197,722 $ 965,948 $ 6,840,839 $ 5,874,891 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, 2025
Budgeted Amounts
101
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Revenue from Other Agencies - $ 3,020,470 $ 1,723,464 $ (1,297,006) $ Total Revenues - 3,020,470 1,723,464 (1,297,006)

EXPENDITURES
Current:

General Government - 2,263,711 864,737 1,398,974
Public Works - - 801,852 (801,852)
Community Services - 756,759 56,875 699,884
Total Expenditures - 3,020,470 1,723,464 1,297,006
Excess (Deficiency) of Revenues
over Expenditures - - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance - - - -
Fund Balance, Beginning - - - -
Fund Balance, Ending $ - $ - $ - $ -
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - ARPA Special Revenue Fund
Year Ended June 30, 2025
Budgeted Amounts
102
City of West Covina
Notes to Required Supplementary Information
Year Ended June 30, 2025

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.
103
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
CalPERS Pension Plan - Miscellaneous
Total Pension Liability 2024 2023 2022 2021 2020
Service cost $ 1,436,195 $ 1,318,320 $ 1,102,405 $ 1,148,088 $ 1,230,251 Interest on total pension liability 11,832,339 11,539,485 11,240,257 11,357,041 11,161,901 Changes of benefit terms 273, - 751 - - -
Changes in assumptions - 4, - 428,742 - -
Differences between expected and actual experience 2,600,261 2,575,267 (2,165,000) 605,918 (956,094) Benefit payments, including refunds (11,355,436) (11,190,041) (10,735,978) (10,630,997) (9,824,549) Net change in total pension liability 4,513,359 4,516,782 3,870,426 2,480,050 1,611,509 Total pension liability - beginning 173,842,530 169,325,748 165,455,322 162,975,272 161,363,763 Total pension liability - ending (a) $ 178,355,889 $ 173,842,530 $ 169,325,748 $ 165,455,322 $ 162,975,272 Plan Fiduciary Net Position
Contributions - employer $ 875,331 $ 1,538,513 $ 1,212,228 $ 41,343,222 $ 3,588,307 Contributions - employee 701,939 623,900 671,818 489,857 658,924 Net investment income 14,571,964 9,446,333 (13,283,040) 33,695,359 5,681,537 Benefit payments (11,355,436) (11,190,041) (10,735,978) (10,630,997) (9,824,549) Net Plan to Plan Resource Movement - - - - -
Administrative/Other Expense (128,656) (116,045) (112,164) (115,152) (162,590) Other Miscellaneous Income/Expense - - - - -
Net change in plan fiduciary net position 4,665,142 302,660 (22,247,136) 64,782,289 (58,371) Plan fiduciary net position - beginning 158,111,696 157,809,036 180,056,172 115,273,883 115,332,254 Plan fiduciary net position - ending (b) $ 162,776,838 $ 158,111,696 $ 157,809,036 $ 180,056,172 $ 115,273,883 Net pension liability - ending (a) - (b) $ 15,579,051 $ 15,730,834 $ 11,516,712 $ (14,600,850) $ 47,701,389 Plan fiduciary net position as a percentage
of the total pension liability 91.27% 90.95% 93.20% 108.82% 70.73% Covered payroll $ 8,773,336 $ 7,736,619 $ 6,394,459 $ 7,100,111 $ 7,756,942 Net pension liability as percentage of
covered payroll 177.57% 203.33% 180.10% -205.64% 614.95% 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).
104
2019 2018 2017 2016 2015
$ 1,488,940 $ 1,598,999 $ 1,568,756 $ 1,395,164 $ 1,454,757 11,031,185 10,735,301 10,499,411 10,423,152 10,180,561
- - - - -
( - 792,110) 8,138,458 (2, - 336,836)
1,166,025 884,485 (1,086,666) (568,485) (134,455)
(9,388,384) (9,225,744) (8,527,256) (8,197,448) (7,534,397) 4,297,766 3,200,931 10,592,703 3,052,383 1,629,630
157,065,997 153,865,066 143,272,363 140,219,980 138,590,350 $ 161,363,763 $ 157,065,997 $ 153,865,066 $ 143,272,363 $ 140,219,980 $ 3,041,783 $ 2,610,696 $ 2,449,585 $ 1,871,710 $ 1,507,469 597,814 785,970 788,064 819,011 714,712
7,327,093 9,216,240 11,531,815 590,110 2,500,142
(9,388,384) (9,225,744) (8,527,256) (8,197,448) (7,534,397) - (266) - (4,880) 307
(80,969) (172,889) (154,821) (66,948) (123,626)
( - 328,320) - - -
1,497,337 2,885,687 6,087,387 (4,988,445) (2,935,393)
113,834,917 110,949,230 104,861,843 109,850,288 112,785,681 $ 115,332,254 $ 113,834,917 $ 110,949,230 $ 104,861,843 $ 109,850,288 $ 46,031,509 $ 43,231,080 $ 42,915,836 $ 38,410,520 $ 30,369,692

71.47% 72.48% 72.11% 73.19% 78.34%
$ 9,307,621 $ 9,961,993 $ 9,710,654 $ 9,349,710 $ 9,381,292 494.56% 433.96% 441.95% 410.82% 323.73%
Measurement Period
105
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
CalPERS Pension Plan - Safety
Total Pension Liability 2024 2023 2022 2021
Service cost 6,947,459 $ 6,622,214 $ 6,180,932 $ 5,563,564 $ Interest on total pension liability 31,587,096 30,486,947 29,392,100 28,585,424 Changes of benefit terms - 106,527 - -
Changes in assumptions - - 14,667,222 -
Differences between expected and actual experience 4,498,742 4,789,224 860,268 4,243,730 Benefit payments, including refunds (26,254,378) (25,398,301) (24,245,865) (23,371,783) Net change in total pension liability 16,778,919 16,606,611 26,854,657 15,020,935 Total pension liability - beginning 462,938,721 446,332,110 419,477,453 404,456,518 Total pension liability - ending (a) 479,717,640 $ 462,938,721 $ 446,332,110 $ 419,477,453 $ Plan Fiduciary Net Position
Contributions - employer 4,985,321 $ 5,593,515 $ 4,920,292 $ 149,228,549 $ Contributions - employee 2,633,790 2,414,142 2,052,325 2,010,282 Net investment income 39,668,302 25,229,936 (34,949,499) 87,171,072 Benefit payments (26,254,378) (25,398,301) (24,245,865) (23,371,783) Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (346,324) (307,439) (293,155) (255,545) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position 20,686,711 7,531,853 (52,515,902) 214,782,575 Plan fiduciary net position - beginning 425,615,287 418,083,434 470,599,336 255,816,761 Plan fiduciary net position - ending (b) 446,301,998 $ 425,615,287 $ 418,083,434 $ 470,599,336 $ Net pension liability - ending (a) - (b) $ 33,415,642 $ 37,323,434 $ 28,248,676 $ (51,121,883) Plan fiduciary net position as a percentage
of the total pension liability 93.03% 91.94% 93.67% 112.19% Covered payroll $ 20,183,420 $ 19,136,013 $ 18,840,380 $ 17,133,244 1 Net pension liability as percentage of
covered payroll 165.56% 195.04% 149.94% -298.38%
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. 106
2020 2019 2018 2017 2016 2015
$ 5,180,535 $ 5,573,847 $ 5,300,363 $ 5,376,792 $ 4,729,431 $ 4,604,800 27,556,923 26,959,893 26,141,448 25,330,388 24,899,740 24,117,128 - - - - - -
- (1,644,342) - 21,000,606 (5,858,071) -
(2,269,271) 706,038 2,470,547 (2,764,123) (145,882) (1,760,971) (22,204,388) (21,231,071) (20,444,515) (19,858,900) (18,951,025) (17,865,208) 8,263,799 12,008,707 11,823,501 29,084,763 10,532,264 3,237,678 396,192,719 384,184,012 372,360,511 343,275,748 332,743,484 329,505,806 $ 404,456,518 $ 396,192,719 $ 384,184,012 $ 372,360,511 $ 343,275,748 $ 332,743,484 $ 12,592,111 $ 11,176,490 $ 10,515,780 $ 10,058,079 $ 8,387,165 $ 7,339,064 1,806,665 1,731,882 1,830,019 1,818,024 1,660,160 1,628,630 12,466,983 15,909,762 19,582,552 23,916,665 1,179,228 5,057,426 (22,204,388) (21,231,071) (20,444,515) (19,858,900) (18,951,025) (17,865,208) - - (568) - 4,880 10,338
(354,567) (174,192) (364,120) (321,946) (137,683) (254,287) - 568 (691,471) - - -
4,306,804 7,413,439 10,427,677 15,611,922 (7,857,275) (4,084,037) 251,509,957 244,096,518 233,668,841 218,056,919 225,914,194 229,998,231 $ 255,816,761 $ 251,509,957 $ 244,096,518 $ 233,668,841 $ 218,056,919 $ 225,914,194 $ 148,639,757 $ 144,682,762 $ 140,087,494 $ 138,691,670 $ 125,218,829 $ 106,829,290

63.25% 63.48% 63.54% 62.75% 63.52% 67.89%
$ 16,447,485 $ 16,283,859 $ 14,051,195 $ 17,084,933 $ 17,288,458 $ 16,517,686 903.72% 888.50% 996.98% 811.78% 724.29% 646.76%
Measurement Period
107
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
PARS Pension Plan - EPMC
Total Pension Liability 2024 2023 2022 2021
Service cost 25,281 $ 29,900 $ 38,336 $ 26,943 $
Interest on total pension liability 39,425 39,536 28,982 31,913 Changes in assumptions (25,498) (11,422) (148,744) 38,703 Differences between expected and actual experience - (30,960) - 10,382 Benefit payments, including refunds (27,374) (88,935) (38,080) (81,760) Net change in total pension liability 11,834 (61,881) (119,506) 26,181 Total pension liability - beginning 1,053,956 1,115,837 1,235,343 1,209,162 Total pension liability - ending (a) $ 1,065,790 $ 1,053,956 $ 1,115,837 $ 1,235,343 Plan Fiduciary Net Position
Contributions - employer $ 44,098 $ 51,212 $ 51,428 $ 52,666 Contributions - employee - - - -
Net investment income 4,722 4,497 (8,794) 18,413
Benefit payments (27,374) (88,935) (38,080) (81,760)
Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (285) (8,120) (3,086) (6,231) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position 21,161 (41,346) 1,468 (16,912) Plan fiduciary net position - beginning 31,135 72,481 71,013 87,925 Plan fiduciary net position - ending (b) $ 52,296 $ 31,135 $ 72,481 $ 71,013 Net pension liability - ending (a) - (b) $ 1,013,494 $ 1,022,821 $ 1,043,356 $ 1,164,330 Plan fiduciary net position as a percentage
of the total pension liability 4.91% 2.95% 6.50% 5.75%
Covered Employee payroll $ 6,751,360 $ 8,046,588 $ 6,238,365 $ 7,202,240 Net pension liability as percentage of
covered employee payroll 15.01% 12.71% 16.72% 16.17%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Changes in Assumptions: In 2024, the discount rate was updated to 3.96%. 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.

Benefit Changes: None.
108
2020 2019 2018 2017 2016 2015
$ 30,564 $ 29,665 $ 29,701 $ 35,733 $ 40,000 $ 36,000
41,806 46,211 46,463 35,268 32,000 28,000
146,898 90,640 10,475 (85,060) (37,000) 200,000
- 45,697 - 98,508 - (72,000)
(103,008) (80,968) (56,554) (42,877) (91,000) (9,000)
116,260 131,245 30,085 41,572 (56,000) 183,000
1,092,902 961,657 931,572 890,000 946,000 763,000
$ 1,209,162 $ 1,092,902 $ 961,657 $ 931,572 $ 890,000 $ 946,000 $ 56,957 $ 62,350 $ 60,056 $ 61,019 $ 56,000 $ 56,000
- - - - - -
2,908 6,567 8,234 10,029 (1,000) 3,000
(103,008) (80,968) (56,554) (42,877) (91,000) (9,000)
- - - - - -
(10,788) (769) (775) (9,456) (1,000) (7,000)
- - - - - -
(53,931) (12,820) 10,961 18,715 (37,000) 43,000
141,856 154,676 143,715 125,000 162,000 119,000
$ 87,925 $ 141,856 $ 154,676 $ 143,715 $ 125,000 $ 162,000 $ 1,121,237 $ 951,046 $ 806,981 $ 787,857 $ 765,000 $ 784,000

7.27% 12.98% 16.08% 15.43% 14.04% 17.12%
$ 10,222,450 $ 14,447,921 $ 15,855,534 n/a $ 13,388,000 n/a

10.97% 6.58% 5.09% n/a 5.71% n/a
Measurement Period
109
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years
PARS Pension Plan - Executive Staff
Total Pension Liability 2024 2023 2022 2021
Service cost - $ - $ - $ - $
Interest on total pension liability 146,119 144,880 111,645 113,650 Changes in assumptions (139,559) (38,862) (921,653) 81,046 Differences between expected and actual experience - 26,582 - 168,573 Benefit payments, including refunds (180,714) (170,456) (173,697) (171,237) Net change in total pension liability (174,154) (37,856) (983,705) 192,032 Total pension liability - beginning 4,071,798 4,109,654 5,093,359 4,901,327 Total pension liability - ending (a) 3,897,644 $ 4,071,798 $ 4,109,654 $ 5,093,359 $ Plan Fiduciary Net Position
Contributions - employer 86,183 $ 75,852 $ 80,949 $ 79,364 $ Contributions - employee - - - -
Net investment income 18,589 19,068 (44,821) 96,424
Benefit payments (180,714) (170,456) (173,697) (171,237) Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (1,403) (6,512) (4,948) (5,903) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position (77,345) (82,048) (142,517) (1,352) Plan fiduciary net position - beginning 235,886 317,934 460,451 461,803 Plan fiduciary net position - ending (b) 158,541 $ 235,886 $ 317,934 $ 460,451 $ Net pension liability - ending (a) - (b) 3,739,103 $ 3,835,912 $ $ 3,791,720 $ 4,632,908 Plan fiduciary net position as a percentage
of the total pension liability 4.07% 5.79% 7.74% 9.04%
Covered Employee payroll $ - $ - $ 269,287 - $
Net pension liability as percentage of
covered employee payroll n/a n/a n/a 1720.44%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:

Measurement Period
Changes in Assumptions: In 2024, the discount rate was updated to 3.94%. 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.

Benefit Changes: None.
110
2020 2019 2018 2017 2016 2015
$ 14,068 $ 11,963 $ 12,235 $ 20,388 $ 30,000 $ 116,000
143,620 133,267 130,692 161,327 141,000 178,000
879,137 281,983 (101,877) 803,038 (455,000) 346,000
477,904 - (111,492) - (643,000) -
(155,804) (152,749) (139,056) (136,317) (137,000) (104,000) 881,021 752,368 (98,006) 736,944 (421,000) (107,000)
4,020,306 3,267,938 3,365,944 2,629,000 3,050,000 3,157,000 $ 4,901,327 $ 4,020,306 $ 3,267,938 $ 3,365,944 $ 2,629,000 $ 3,050,000 $ 77,814 $ 78,102 $ 74,100 $ 73,467 $ 78,000 $ 78,000
- - - - - -
15,031 31,817 36,931 49,861 9,000 13,000
(155,804) (152,749) (139,056) (136,317) (137,000) (104,000) - - - - - -
(9,475) (3,109) (3,379) (8,431) (4,000) (6,000)
- - - - - -
(72,434) (45,939) (31,404) (21,420) (54,000) (19,000)
534,237 580,176 611,580 633,000 687,000 706,000
$ 461,803 $ 534,237 $ 580,176 $ 611,580 $ 633,000 $ 687,000 $ 4,439,524 $ 3,486,069 $ 2,687,762 $ 2,754,364 $ 1,996,000 $ 2,363,000

9.42% 13.29% 17.75% 18.17% 24.08% 22.52%
$ 219,555 $ 179,572 $ 172,512 n/a $ 143,000 n/a
2022.06% 1941.32% 1558.01% n/a 1395.80% n/a
Measurement Period
111
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
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 2025 $ 1,447,012 $ (1,447,012) $ 8,175,935 - $ 17.70%
2024 875,331 (875,331) 8,773,336 - 9.98%
2023 1,541,102 (1,541,102) 7,736,619 - 19.92%
2022 1,212,353 (1,212,353) 6,394,459 - 18.96%
2021 3,887,907 (41,343,286) (37,455,379) 7,100,111 582.29% 2020 3,588,349 (3,588,349) 7,756,942 - 46.26%
2019 3,041,539 (3,041,539) 9,307,621 - 32.68%
2018 2,610,696 (2,610,696) 9,961,993 - 26.21%
2017 2,449,585 (2,449,585) 9,710,654 - 25.23%
2016 1,871,710 (1,871,710) 9,349,710 - 20.02%
Schedule of Plan Contributions
Last 10 Years
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2025 $ 6,140,085 $ (6,140,085) $ 21,876,367 - $ 28.07%
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%
Schedule of Plan Contributions
Last 10 Years*
112
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
Contributions in Contributions
Relation to the as a % of
Actuarially Actuarially Contribution Covered Covered
Determined Determined Deficiency/ Employee Employee
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2025 $ 131,000 $ (50,261) $ 80,739 $ 6,285,981 0.80%
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%
Schedule of Plan Contributions
Last 10 Years
PARS Pension Plan - EPMC
Contributions in Contributions
Relation to the as a % of
Actuarially Actuarially Contribution Covered Covered
Determined Determined Deficiency/ Employee Employee
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2025 $ 389,000 $ (94,198) $ 294,802 $ n/a -
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
PARS Pension Plan - Executive Staff
Last 10 Years
Schedule of Plan Contributions
113
City of West Covina
Required Supplementary Information
Year Ended June 30, 2025
Schedule of Changes in the Total OPEB
Liability and Related Ratios - Last 10 Years*
Total OPEB Liability 2024 2023 2022 2021
Service cost 1,245,805 $ 1,266,718 $ 1,774,641 $ 2,306,792 $ Interest on total OPEB liability 2,088,882 1,919,454 1,418,451 1,704,367 Changes in assumptions (1,984,632) (427,546) (11,680,203) (3,773,434) Differences between expected and actual experience 2, - 792,237 (8, - 698,716) Benefit payments, including refunds (2,543,399) (2,500,938) (2,403,386) (2,513,526) Net change in total OPEB liability (1,193,344) 3,049,925 (10,890,497) (10,974,517) Total OPEB liability - beginning 57,255,537 54,205,612 65,096,109 76,070,626 Total OPEB liability - ending (a) $ 56,062,193 $ 57,255,537 $ 54,205,612 $ 65,096,109 Covered Employee payroll $ 31,464,956 $ 39,913,385 $ 36,002,475 $ 33,956,907 Total OPEB liability as percentage of
covered - employee payroll 178.17% 143.45% 150.56% 191.70% 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.
114
2020 2019 2018 2017
$ 1,575,501 $ 1,545,500 $ 1,619,250 $ 1,913,541
2,156,480 2,285,257 2,158,673 1,889,517
13,555,256 2,887,380 (2,524,608) (7,040,369)
(1, - 738,131) - -
(2,509,638) (2,384,056) (2,470,254) (2,467,893)
14,777,599 2,595,950 (1,216,939) (5,705,204)
61,293,027 58,697,077 59,914,016 65,619,220
$ 76,070,626 $ 61,293,027 $ 58,697,077 $ 59,914,016
$ 33,069,467 $ 26,672,215 $ 28,239,505 $ 26,527,000
230.03% 229.80% 207.85% 225.86%
Measurement Period
115
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116

SUPPLEMENTARY INFORMATION

117
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 500,000 $ 1,186,435 $ 686,435 $
Revenue from Other Agencies 1,429,295 1,345,484 (83,811) Total Revenues 1,929,295 2,531,919 602,624

EXPENDITURES
Current:

General Government 10,000 10,000 -
Public Safety - - -
Debt Service:

Principal 6,659,984 7,107,600 (447,616)
Interest 9,202,629 8,570,842 631,787
Total Expenditures 15,872,613 15,688,442 184,171
Excess (Deficiency) of Revenues
over Expenditures (13,943,318) (13,156,523) 786,795

OTHER FINANCING SOURCES (USES)
Transfers In 13,317,096 13,943,318 (626,222)
Transfers Out - - -
Total Other Financing
Sources (Uses) 13,943,318 13,317,096 (626,222)
Net Change in Fund Balances - 160,573 160,573
Fund Balance, Beginning 20,118,960 20,118,960
Fund Balance, Ending 20,118,96 $ 0 $ 20,279,533 $ 160,573 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Citywide Debt Service Fund
Year Ended June 30, 2025
118

OTHER GOVERNMENTAL FUNDS
119
City of West Covina
Other Governmental Funds
Year Ended June 30, 2025
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. 120
City of West Covina
Other Governmental Funds
Year Ended June 30, 2025
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. 121
City of West Covina
Other Governmental Funds
Year Ended June 30, 2025
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.
122
City of West Covina
Other Governmental Funds
Year Ended June 30, 2025
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. 123
Drug Air
Enforcement Quality Proposition Police
Rebate Improvement C Donations
ASSETS
Cash and Investments 6,529,718 $ 587,254 $ 3,274,443 $ 30,012 $ Restricted Cash and Investments - - - -
Receivables, net:

Accounts - - - -
Taxes - - - -
Notes and Loans
Other - - - -
Due from Other Agencies - 37,977 - -
Prepaid Items - - - -
Total Assets 6,529,718 $ 625,231 $ 3,274,443 $ 30,012 $

LIABILITIES
Accounts Payable 46,274 $ - $ 432,950 $ - $
Other Accrued Liabilities 395 - 1,939 -
Deposits Payable - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities 46,669 - 434,889 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 37,977 - -
Total Deferred Inflows of Resources - 37,977 - -

FUND BALANCE (DEFICITS)
Nonspendable - - - -
Restricted 6,483,049 587,254 2,839,554 30,012
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 6,483,049 587,254 2,839,554 30,012 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 6,529,718 $ 625,231 $ 3,274,443 $ 30,012 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2025
124
Transportation Community Public
Development Various Development Inmate Safety
Act AB939 Grants Block Grant Welfare Augmentation COPS/SLESA $ 43,789 $ 1,724,512 $ 209,506 $ - $ 3,434 $ 2,730 $ 18,854 - - 13,636 - - - -
- 95,557 - - - - -
- - - - 167,200 - 171,077
2,849,427
83,915 - - - - - -
- 1,881,435 - 180,996 - - -
- - - - - - -
$ 43,789 $ 1,808,427 $ 2,186,498 $ 3,044,059 $ 3,434 $ 169,930 $ 189,931 $ 11,137 $ 1,984 $ 815,361 $ 158,120 $ - $ 6,677 $ 14,831 1,883 1,839 264,202 2,855 19,253 - 4,023
- - - - - - -
- - 181,054 - - - -
- - - - - - -
13,020 3,823 1,079,563 342,029 25,930 - 18,854
- 1,860,442 - - - 171,077 -
- 1,860,442 - - - 171,077 -
- - - - - - -
30,769 1,804,604 2,702,030 - 3,434 144,000 -
- - - - - - -
- (753,507) - - - - -
30,769 1,804,604 (753,507) 2,702,030 3,434 144,000 -
$ 43,789 $ 1,808,427 $ 2,186,498 $ 3,044,059 $ 3,434 $ 169,930 $ 189,931 Continued
Special Revenue
125
Maintenance Maintenance Coastal Sage Maintenance
District #1 District #2 Shrub District #4
ASSETS
Cash and Investments 4,716,035 $ 1,269,997 $ 538,650 $ 2,295,913 $ Restricted Cash and Investments - - - -
Receivables, net:

Accounts - - - -
Taxes 8,440 79,059 (51) 18,526
Other - - - -
Due from Other Agencies - - - -
Prepaid Items - - - -
Total Assets 4,724,47 $ 5 $ 1,349,056 $ 538,599 $ 2,314,439

LIABILITIES
Accounts Payable $ 24,293 $ 32,751 $ 11,904 $ 120,432
Other Accrued Liabilities 985 812 - 1,469
Deposits Payable - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities 25,278 33,563 11,904 121,901

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

FUND BALANCE (DEFICITS)
Nonspendable - - - -
Restricted 4,699,197 1,315,493 526,695 2,192,538
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 4,699,197 1,315,493 526,695 2,192,538 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 4,724,475 $ 1,349,056 $ 538,599 $ 2,314,439 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2025
126
Citywide Auto Plaza General
Maintenance Maintenance Maintenance Sewer Improvement Plan Measure Charter District #6 District #7 District Maintenance District Update W PEG $ 348,892 $ 453,051 $ 617,850 $ 16,540,652 $ 97,241 $ 1,479,753 $ 4,763,223 $ 13,988 - - - - - - - -
- - - - - - - -
2,217 3,016 27,926 60,770 16,524 - - -
- - - - - - - -
- - - - - 2,702,346 - -
- - - - - - - -
$ 351,109 $ 456,067 $ 645,776 $ 16,601,422 $ 113,765 $ 1,479,753 $ 7,465,569 $ 13,988 $ 12,135 $ 15,266 $ 15,937 $ 162,595 $ 1,356 $ 105,809 $ 290,777 $ - 621 621 2,101 24,467 683 18,232 - -
- - - - - - - -
- - - - - - - -
- - - 58,153 - - - -
12,756 15,887 18,038 187,062 60,192 105,809 309,009 -
- - - - - 1,350,188 - -
- - - - - 1,350,188 - -
- - - - - - - -
338,353 440,180 627,738 16,414,360 53,573 1,373,944 5,806,372 13,988 - - - - - - - -
- - - - - - - -
338,353 440,180 627,738 16,414,360 53,573 1,373,944 5,806,372 13,988 $ 351,109 $ 456,067 $ 645,776 $ 16,601,422 $ 113,765 $ 1,479,753 $ 7,465,569 $ 13,988 Continued
Special Revenue
127
Art in West Covina
Public Community Measure Measure
Places Services Found. R M
ASSETS
Cash and Investments 754,083 $ 225,620 $ 6,445,240 $ 9,506,537 $ Restricted Cash and Investments - - - -
Receivables, net:

Accounts - - - -
Taxes - - - 269,487
Other - - - -
Due from Other Agencies - - - -
Prepaid Items - 300 - -
Total Assets 754,083 $ 225,920 $ 6,445,240 $ 9,776,024 $

LIABILITIES
Accounts Payable - $ 825 $ 304,767 $ 357,680 $
Other Accrued Liabilities - - 1,159 64,651
Deposits Payable - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities - 825 305,926 422,331

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

FUND BALANCE (DEFICITS)
Nonspendable - 300 - -
Restricted 754,083 224,795 6,139,314 9,353,693
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 754,083 225,095 6,139,314 9,353,693 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 754,083 $ 225,920 $ 6,445,240 $ 9,776,024 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2025
128
CASP
Measure Training Construction Information Development
H Fund Sportsplex City Tax Technology Impact Fees
$ 265,605 $ 115,850 $ 162,724 $ 8,118,512 $ 252,802 $ 458,650 $ 693,880 - - - - - - -
- - - - - - -
- - - - - - -
- 2,121 - - - - -
- - - - - - -
- - - - 58,708 - -
$ 265,605 $ 117,971 $ 162,724 $ 8,118,512 $ 252,802 $ 517,358 $ 693,880 $ - $ 142,875 - $ $ 92,982 $ - $ 15 $ 5,182
- 18,049 - 7,806 - - -
- - - - - - -
- - - - - - -
- - - - - - -
- 160,924 - 100,788 - 15 5,182
- - - - - - -
- - - - - - -
- - - - 58,708 - -
265,605 117,971 1,800 252,802 - 458,635 688,698
- - 8,017,724 - - - -
- - - - - - -
265,605 117,971 1,800 8,017,724 252,802 517,343 688,698 $ 265,605 $ 117,971 $ 162,724 $ 8,118,512 $ 252,802 $ 517,358 $ 693,880 Continued
Special Revenue Capital Projects
129
Future
Park Street
Development Improvements Total
ASSETS
Cash and Investments 7,631,949 $ 428,172 $ 80,619,121 $ Restricted Cash and Investments - - 13,636
Receivables, net:

Accounts - - 95,557
Taxes - - 824,191
2,849,427
Other 2,744 - 88,780
Due from Other Agencies - - 4,802,754
Prepaid Items - - 59,008
Total Assets 7,634,693 $ 428,172 $ 89,352,474 $

LIABILITIES
Accounts Payable 5,418 $ - $ 3,190,333 $
Other Accrued Liabilities - - 438,045
Deposits Payable - - -
Due to Other Funds - - 181,054
Advances from Other Funds - - 58,153
Total Liabilities 5,418 - 3,867,585

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 3,419,684
Total Deferred Inflows of Resources - - 3,419,684

FUND BALANCE (DEFICITS)
Nonspendable - - 59,008
Restricted 7,629,275 428,172 74,741,980
Assigned - - 8,017,724
Unassigned - - (753,507)
Total Fund Balances (Deficits) 7,629,275 428,172 82,065,205 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) 7,634,693 $ 428,172 $ 89,352,474 $ Capital Projects
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2025
130
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131
Drug Air
Enforcement Quality Proposition Police
Rebate Improvement C Donations

REVENUES
Taxes - $ - $ 2,348,221 $ - $
Special Assessments - - - -
Investment Income 209,382 14,852 96,323 876
Rental Income - - - -
Revenue from Other Agencies 925,823 143,751 - -
Charges for Services - - 17,341 -
Other Revenues 122,904 - - 1,490
Total Revenues 1,258,109 158,603 2,461,885 2,366

EXPENDITURES
Current:

General Government - - - -
Public Safety 1,676,729 - - 2,262
Public Works - 1,412 558,075 -
Community Services - - 1,675,289 -
Community Development - - 7,138 -
Total Expenditures 1,676,729 1,412 2,240,502 2,262
Excess (Deficiency) of Revenues
Over Expenditures (418,620) 157,191 221,383 104

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (418,620) 157,191 221,383 104 Fund Balances, Beginning 6,901,669 430,063 2,618,171 29,908 Fund Balances - Ending $ 6,483,049 $ 587,254 $ 2,839,554 $ 30,012 City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2025
Special Revenue
132
Transportation Community Public
Development Various Development Inmate Safety
Act AB939 Grants Block Grant Welfare Augmentation COPS/SLESA $ - $ - $ - $ - $ 953,634 - $ $ -
- - - - - - -
903 49,057 36,823 - 123 6,028 2,011
- - - - - - -
149,650 761,474 - 1,960,426 - 327,289 -
- - - - - - -
327,251 - 18,408 31,774 - - -
150,553 376,308 816,705 1,992,200 123 959,662 329,300
- - - - - - -
- 505,827 - - 3,931 1,200,718 358,125
161,182 86,898 1,586,491 1,623,937 - - -
- 332,491 - 239,853 - - -
- 13,760 - 252,769 - - -
161,182 86,898 2,438,569 2,116,559 3,931 1,200,718 358,125 (10,629) 289,410 (1,621,864) (124,359) (3,808) (241,056) (28,825) - 71,396 - - - - -
- - - - - - -
- 71,396 - - - - -
(10,629) 289,410 (1,550,468) (124,359) (3,808) (241,056) (28,825) 41,398 1,515,194 796,961 2,826,389 7,242 385,056 28,825 $ 30,769 $ 1,804,604 $ (753,507) $ 2,702,030 $ 3,434 $ 144,000 $ - Continued
Special Revenue
133
Maintenance Maintenance Coastal Sage Maintenance
District #1 District #2 Shrub District #4

REVENUES
Taxes 738,781 $ 322,122 $ 107,598 $ - $
Special Assessments - - - 1,166,061
Investment Income 133,231 36,207 16,328 63,539
Rental Income - - - -
Revenue from Other Agencies - - - -
Charges for Services - - - -
Other Revenues - - - -
Total Revenues 872,012 358,329 123,926 1,229,600

EXPENDITURES
Current:

General Government - - - -
Public Safety - - - -
Public Works 409,667 193,723 130,476 1,181,869
Community Services - - - -
Community Development - - - -
Total Expenditures 409,667 193,723 130,476 1,181,869
Excess (Deficiency) of Revenues
Over Expenditures 462,345 164,606 (6,550) 47,731

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 462,345 164,606 (6,550) 47,731 Fund Balances, Beginning 4,236,852 1,150,887 533,245 2,144,807 Fund Balances - Ending $ 4,699,197 $ 1,315,493 $ 526,695 $ 2,192,538 City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2025
Special Revenue
134
Citywide Auto Plaza General
Maintenance Maintenance Maintenance Sewer Improvement Plan Measure Charter District #6 District #7 District Maintenance District Update W PEG $ - $ - $ 431,031 - $ $ 74,306 $ 1,352,158 - $ $ -
154,717 167,425 1,924,509 3,857,507 - - - -
9,836 13,253 14,474 441,603 4,414 171,170 - 419
- - - - - - - -
- - - - - - - -
- - - - 174,680 - - -
- - - - - - - -
164,553 180,678 1,938,983 4,730,141 78,720 174,680 1,523,328 419 - - - - - - - -
- - - - - - - -
151,557 200,598 2,035,826 1,790,985 - 1,533,794 - -
- - - - - - - -
- - - 47,186 - 105,809 - -
151,557 200,598 2,035,826 1,790,985 47,186 105,809 1,533,794 - 12,996 (19,920) (96,843) 2,939,156 31,534 68,871 (10,466) 419 - - - - - - - -
- - - - - - - -
- - - - - - - -
12,996 (19,920) (96,843) 2,939,156 31,534 68,871 (10,466) 419 325,357 460,100 724,581 13,475,204 22,039 1,305,073 5,816,838 13,569 $ 338,353 $ 440,180 $ 627,738 $ 16,414,360 $ 53,573 $ 1,373,944 $ 5,806,372 $ 13,988 Continued
Special Revenue
135
Art in West Covina
Public Community Measure Measure
Places Services Found. R M

REVENUES
Taxes - $ - $ 1,760,839 $ 2,264,459 $
Special Assessments - - - -
Investment Income 22,603 - 183,775 294,574
Rental Income - - - -
Revenue from Other Agencies - - - -
Charges for Services - - 1,582 -
Other Revenues 4,000 370,172 - -
Total Revenues 26,603 370,172 1,946,196 2,559,033

EXPENDITURES
Current:

General Government - 78,560 - -
Public Safety - 5,882 - 654
Public Works - - 1,022,664 2,396,975
Community Services - 75,558 298,994 -
Community Development - 22 - -
Total Expenditures - 160,022 1,321,658 2,397,629
Excess (Deficiency) of Revenues
Over Expenditures 26,603 210,150 624,538 161,404

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 26,603 210,150 624,538 161,404 Fund Balances, Beginning 727,480 14,945 5,514,776 9,192,289 Fund Balances - Ending $ 754,083 $ 225,095 $ 6,139,314 $ 9,353,693 City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2025
Special Revenue
136
CASP
Measure Training Construction Information Development
H Fund Sportsplex City Tax Technology Impact Fees
$ - - $ - $ - $ - $ - $ - $
- - - - - - -
3,457 7,140 - - 7,577 - -
- - 563,571 - - - -
941 - - - - - -
- - - - - - -
- 214,538 26,368 - - 94,273 8,046
4,398 221,678 589,939 - 7,577 94,273 8,046
- - - - - 119,126 -
- 7,500 - 19,494 - - -
- - - 450,710 - - 5,182
- - 1,313,960 - - - -
- - - - - - -
7,500 1,313,960 - 470,204 119,126 - 5,182
214,178 4,398 (724,021) (470,204) 7,577 (24,853) 2,864
- 725,821 - - - - -
- - - - - - -
- 725,821 - - - - -
214,178 4,398 1,800 (470,204) 7,577 (24,853) 2,864
51,427 113,573 8,487,928 - 245,225 542,196 685,834
$ 265,605 $ 117,971 $ 1,800 $ 8,017,724 $ 252,802 $ 517,343 $ 688,698 Continued
Special Revenue Capital Projects
137
Future
Park Street
Development Improvements Total

REVENUES
Taxes - $ - $ 10,353,149 $
Special Assessments - - 7,270,219
Investment Income 231,100 - 2,071,078
Rental Income - - 563,571
Revenue from Other Agencies - - 4,269,354
Charges for Services - - 193,603
Other Revenues 21,900 - 1,241,124
Total Revenues 253,000 - 25,962,098

EXPENDITURES
Current:

General Government - - 197,686
Public Safety - - 3,781,122
Public Works 166,201 - 15,688,222
Community Services - - 3,936,145
Community Development - - 426,684
Total Expenditures 166,201 - 24,029,859
Excess (Deficiency) of Revenues
Over Expenditures 86,799 - 1,932,239

OTHER FINANCING SOURCES (USES)
Transfers In - - 797,217
Transfers Out - - -
Total Other Financing Sources (Uses) - - 797,217
Net Change in Fund Balances 86,799 - 2,729,456
Fund Balances, Beginning 7,542,476 428,172 79,335,749
Fund Balances - Ending 7,629,275 $ 428,172 $ 82,065,205 $ City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds - Continued
Year Ended June 30, 2025
Capital Projects
138
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 132,800 $ 209,382 $ 76,582 $
Revenues from Other Agencies - 925,823 925,823
Other Revenues - 122,904 122,904
Total Revenues 132,800 1,258,109 1,125,309

EXPENDITURES
Current:

Public Safety 2,995,532 1,676,729 1,318,803
Total Expenditures 2,995,532 1,676,729 1,318,803
Excess (Deficiency) of Revenues
over Expenditures (2,862,732) (418,620) 2,444,112

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (2,862,732) (418,620) 2,444,112 Fund Balance, Beginning 6,901,669 6,901,669 -
Fund Balance, Ending 4,038,937 $ 6,483,04 $ 9 $ 2,444,112 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, 2025
139
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 7,600 $ 14,852 $ 7,252 $
Revenue from Other Agencies 136,500 143,751 7,251
Other Revenues - - -
Total Revenues 144,100 158,603 14,503

EXPENDITURES
Current:

Public Works 226,400 1,412 224,988
Total Expenditures 226,400 1,412 224,988
Excess (Deficiency) of Revenues
over Expenditures (82,300) 157,191 239,491

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (82,300) 157,191 239,491
Fund Balance, Beginning 430,063 430,063 -
Fund Balance, Ending 347,763 $ 587,254 $ 239,491 $
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, 2025
140
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 2,517,170 $ 2,348,221 $ (168,949) $
Investment Income 61,000 96,323 35,323
Charges for Services - 17,341 17,341
Other Revenues - - -
Total Revenues 2,578,170 2,461,885 (116,285)

EXPENDITURES
Current:

Public Works 620,871 558,075 62,796
Community Services 2,017,445 1,675,289 342,156
Community Development 7,216 7,138 78
Total Expenditures 2,645,532 2,240,502 405,030
Excess (Deficiency) of Revenues
over Expenditures (67,362) 221,383 288,745

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (67,362) 221,383 288,745
Fund Balance, Beginning 2,618,171 2,618,171 -
Fund Balance, Ending 2,550,80 $ 9 $ 2,839,554 $ 288,745 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, 2025
141
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 600 $ 876 $ 276 $
Other Revenues 1,500 1,490 (10)
Total Revenues 2,100 2,366 266

EXPENDITURES
Current:

Public Safety 5,859 2,262 3,597
Total Expenditures 5,859 2,262 3,597
Excess (Deficiency) of Revenues
over Expenditures (3,759) 104 3,863

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (3,759) 104 3,863
Fund Balance, Beginning 29,908 29,908 -
Fund Balance, Ending 26,149 $ 30,012 $ 3,863 $
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, 2025
142
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 900 $ 903 $ 3 $
Revenue from Other Agencies 118,600 149,650 31,050
Total Revenues 119,500 150,553 31,053

EXPENDITURES
Current:

Public Works 149,774 161,182 (11,408)
Total Expenditures 149,774 161,182 (11,408)
Excess (Deficiency) of Revenues
over Expenditures (30,274) (10,629) 19,645

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (30,274) (10,629) 19,645
Fund Balance, Beginning 41,398 41,398 -
Fund Balance, Ending 11,124 $ 30,769 $ 19,645 $
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, 2025
143
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 27,000 $ 49,057 $ 22,057 $
Other Revenues 292,000 327,251 35,251
Total Revenues 319,000 376,308 57,308

EXPENDITURES
Current:

Public Works 138,157 86,898 51,259
Community Services - - 0
Total Expenditures 138,157 86,898 51,259
Excess (Deficiency) of Revenues
over Expenditures 180,843 289,410 108,567

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 180,843 289,410 108,567
Fund Balance, Beginning 1,515,194 1,515,194 -
Fund Balance, Ending 1,696,037 $ 1,804,604 $ 108,567 $
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, 2025
144
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 28,000 $ 36,823 $ 8,823 $
Revenue from Other Agencies 1,957,129 761,474 (1,195,655) Other Revenues 20,000 18,408 (1,592)
Total Revenues 2,005,129 816,705 (1,188,424)

EXPENDITURES
Current:

Public Safety 847,792 505,827 341,965
Public Works 13,379,189 1,586,491 11,792,698
Community Services 341,708 332,491 9,217
Community Development - 13,760 (13,760)
Total Expenditures 14,568,689 2,438,569 12,130,120
Excess (Deficiency) of Revenues
over Expenditures (12,563,560) (1,621,864) 10,941,696

OTHER FINANCING SOURCES (USES)
Transfers In - 71,396 71,396
Transfers Out - - -
Total Other Financing
Sources (Uses) - 71,396 71,396
Net Change in Fund Balances (12,563,560) (1,550,468) 11,013,092 Fund Balance, Beginning 796,961 796,961 -
Fund Balance, Ending (11,766,599 $ ) $ (753,507) $ 11,013,092 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, 2025
145
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ - $
Revenues from Other Agencies 1,019,671 1,960,426 940,755 Other Revenues 20,000 31,774 11,774
Total Revenues 1,039,671 1,992,200 952,529

EXPENDITURES
Current:

Public Safety 200 - 200
Public Works 2,471,060 1,623,937 847,123
Community Services 258,570 239,853 18,717
Community Development 780,901 252,769 528,132
Total Expenditures 3,510,731 2,116,559 1,394,172
Excess (Deficiency) of Revenues
over Expenditures (2,471,060) (124,359) 2,346,701

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (2,471,060) (124,359) 2,346,701 Fund Balance, Beginning, Restated 2,826,389 2,826,389 - Fund Balance, Ending 355,329 $ 2,702,030 $ 2,346,701 $
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, 2025
146
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 200 $ 123 $ (77) $
Charges for Services - - -
Total Revenues 200 123 (77)

EXPENDITURES
Current:

Public Safety 4,000 3,931 69
Total Expenditures 4,000 3,931 69
Excess (Deficiency) of Revenues
over Expenditures (3,800) (3,808) (8)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (3,800) (3,808) (8)
Fund Balance, Beginning 7,242 7,242 -
Fund Balance, Ending 3,442 $ 3,434 $ (8) $
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, 2025
147
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 861,400 $ 953,634 $ 92,234 $
Investment Income 11,000 6,028 (4,972)
Total Revenues 872,400 959,662 87,262

EXPENDITURES
Current:

Public Safety 1,166,855 1,200,718 (33,863)
Total Expenditures 1,166,855 1,200,718 (33,863)
Excess (Deficiency) of Revenues
over Expenditures (294,455) (241,056) 53,399

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (294,455) (241,056) 53,399
Fund Balance, Beginning 385,056 385,056 -
Fund Balance, Ending 90,601 $ 144,000 $ 53,399 $
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, 2025
148
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 1,200 $ 2,011 $ 811 $
Revenue from Other Agencies 292,000 327,289 35,289
Total Revenues 293,200 329,300 36,100

EXPENDITURES
Current:

Public Safety 340,083 358,125 (18,042)
Total Expenditures 340,083 358,125 (18,042)
Excess (Deficiency) of Revenues
over Expenditures (46,883) (28,825) 18,058

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (46,883) (28,825) 18,058
Fund Balance, Beginning 28,825 28,825 -
Fund Balance, Ending (18,058) $ - $ 18,058 $
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, 2025
149
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 692,700 $ 738,781 $ 46,081 $
Investment Income 83,700 133,231 49,531
Total Revenues 776,400 872,012 95,612

EXPENDITURES
Current:

Public Works 711,890 409,667 302,223
Total Expenditures 711,890 409,667 302,223
Excess (Deficiency) of Revenues
over Expenditures 64,510 462,345 397,835

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 64,510 462,345 397,835
Fund Balance, Beginning 4,236,852 4,236,852 -
Fund Balance, Ending 4,301,362 $ 4,699,19 $ 7 $ 397,835 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, 2025
150
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 254,500 $ 322,122 $ 67,622 $
Investment Income 22,200 36,207 14,007
Total Revenues 276,700 358,329 81,629

EXPENDITURES
Current:

Public Works 530,707 193,723 336,984
Total Expenditures 530,707 193,723 336,984
Excess (Deficiency) of Revenues
over Expenditures (254,007) 164,606 418,613

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (254,007) 164,606 418,613
Fund Balance, Beginning 1,150,887 1,150,887 -
Fund Balance, Ending 896,880 $ 1,315,49 $ 3 $ 418,613
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, 2025
151
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 100,400 $ 107,598 $ 7,198 $
Investment Income 10,700 16,328 5,628
Total Revenues 111,100 123,926 12,826

EXPENDITURES
Current:

Public Works 147,560 130,476 17,084
Total Expenditures 147,560 130,476 17,084
Excess (Deficiency) of Revenues
over Expenditures (36,460) (6,550) 29,910

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (36,460) (6,550) 29,910
Fund Balance, Beginning 533,245 533,245 -
Fund Balance, Ending 496,785 $ 526,695 $ 29,910 $
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, 2025
152
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 1,023,520 $ 1,166,061 $ 142,541 $
Investment Income 41,200 63,539 22,339
Total Revenues 1,064,720 1,229,600 164,880

EXPENDITURES
Current:

Public Works 1,632,310 1,181,869 450,441
Total Expenditures 1,632,310 1,181,869 450,441
Excess (Deficiency) of Revenues
over Expenditures (567,590) 47,731 615,321

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (567,590) 47,731 615,321
Fund Balance, Beginning 2,144,807 2,144,807 -
Fund Balance, Ending 1,577,21 $ 7 $ 2,192,538 $ 615,321 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, 2025
153
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 159,800 $ 154,717 $ (5,083) $
Investment Income 6,300 9,836 3,536
Total Revenues 166,100 164,553 (1,547)

EXPENDITURES
Current:

Public Works 303,124 151,557 151,567
Total Expenditures 303,124 151,557 151,567
Excess (Deficiency) of Revenues
over Expenditures (137,024) 12,996 150,020

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (137,024) 12,996 150,020
Fund Balance, Beginning 325,357 325,357 -
Fund Balance, Ending 188,333 $ 338,353 $ 150,020 $
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, 2025
154
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 177,980 $ 167,425 $ (10,555) $
Investment Income 9,100 13,253 4,153
Total Revenues 187,080 180,678 (6,402)

EXPENDITURES
Current:

Public Works 348,144 200,598 147,546
Total Expenditures 348,144 200,598 147,546
Excess (Deficiency) of Revenues
over Expenditures (161,064) (19,920) 141,144

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (161,064) (19,920) 141,144
Fund Balance, Beginning 460,100 460,100 -
Fund Balance, Ending 299,036 $ 440,180 $ 141,144 $
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, 2025
155
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Special Assessments 1,905,710 $ 1,924,509 $ 18,799 $
Investment Income 12,600 14,474 1,874
Total Revenues 1,918,310 1,938,983 20,673

EXPENDITURES
Current:

Public Works 2,367,697 2,035,826 331,871
Community Services - - -
Community Development - - -
Total Expenditures 2,367,697 2,035,826 331,871
Excess (Deficiency) of Revenues
over Expenditures (449,387) (96,843) 352,544

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (449,387) (96,843) 352,544
Fund Balance, Beginning 724,581 724,581 -
Fund Balance, Ending 275,194 $ 627,738 $ 352,544 $
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, 2025
156
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 351,100 $ 431,031 $ 79,931 $
Special Assessments 3,937,300 3,857,507 (79,793)
Investment Income 244,700 441,603 196,903
Charges for Services - - -
Total Revenues 4,533,100 4,730,141 197,041

EXPENDITURES
Current:

Public Safety - - -
Public Works 14,105,912 1,790,985 12,314,927
Community Development 20 - 20
Total Expenditures 14,105,932 1,790,985 12,314,947
Excess (Deficiency) of Revenues
over Expenditures (9,572,832) 2,939,156 12,511,988

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (9,572,832) 2,939,156 12,511,988 Fund Balance, Beginning 13,475,204 13,475,204 -
Fund Balance, Ending 3,902,372 $ 16,414,36 $ 0 $ 12,511,988 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, 2025
157
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 115,668 $ 74,306 $ (41,362) $
Investment Income 2,300 4,414 2,114
Total Revenues 117,968 78,720 (39,248)

EXPENDITURES
Current:

Community Development 117,511 47,186 70,325
Total Expenditures 117,511 47,186 70,325
Excess (Deficiency) of Revenues
over Expenditures 457 31,534 31,077

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 457 31,534 31,077
Fund Balance, Beginning 22,039 22,039 -
Fund Balance, Ending 22,496 $ 53,573 $ 31,077 $
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, 2025
158
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Charges for Services 302,500 $ 174,680 $ (127,820) $
Investment Income - - -
Total Revenues 302,500 174,680 (127,820)

EXPENDITURES
Current:

Community Development 1,000,000 105,809 894,191
Total Expenditures 1,000,000 105,809 894,191
Excess (Deficiency) of Revenues
over Expenditures (697,500) 68,871 766,371

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (697,500) 68,871 766,371
Fund Balance, Beginning 1,305,073 1,305,073 -
Fund Balance, Ending 607,573 $ 1,373,94 $ 4 $ 766,371
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, 2025
159
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,370,000 $ 1,352,158 $ (17,842) $
Investment Income 99,800 171,170 71,370
Investment Income - - -
Total Revenues 1,469,800 1,523,328 53,528

EXPENDITURES
Current:

Public Works 6,378,292 1,533,794 4,844,498
Total Expenditures 6,378,292 1,533,794 4,844,498
Excess (Deficiency) of Revenues
over Expenditures (4,908,492) (10,466) 4,898,026

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (4,908,492) (10,466) 4,898,026 Fund Balance, Beginning 5,816,838 5,816,838 -
Fund Balance, Ending 908,346 $ 5,806,372 $ 4,898,02 $ 6 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, 2025
160
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes - $ - $ -$
Investment Income 300 419 119
Total Revenues 300 419 119

EXPENDITURES
Current:

General Government - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
over Expenditures 300 419 119

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 300 419 119
Fund Balance, Beginning 13,569 13,569 -
Fund Balance, Ending 13,869 $ 13,988 $ 119 $
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, 2025
161
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 15,300 $ 22,603 $ 7,303 $
Other Revenues - 4,000 4,000
Total Revenues 15,300 26,603 11,303

EXPENDITURES
Current:

Public Works 199,998 - 199,998
Total Expenditures 199,998 - 199,998
Excess (Deficiency) of Revenues
over Expenditures (184,698) 26,603 211,301

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (184,698) 26,603 211,301
Fund Balance, Beginning 727,480 727,480
Fund Balance, Ending 542,782 $ 754,083 $ 211,301 $
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, 2025
162
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ -$
Other Revenues 398,140 370,172 (27,968)
Total Revenues 398,140 370,172 (27,968)

EXPENDITURES
Current:

General Government 78,560 78,560 -
Public Safety 194,864 5,882 188,982
Community Services 77,016 75,558 1,458
Community Development - 22 (22)
Total Expenditures 350,440 160,022 190,418
Excess (Deficiency) of Revenues
over Expenditures 47,700 210,150 162,450

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 47,700 210,150 162,450
Fund Balance, Beginning 14,945 14,945 -
Fund Balance, Ending 62,645 $ 225,095 $ 162,450 $
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, 2025
163
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,887,882 $ 1,760,839 $ (127,043) $
Charges for Services - 1,582 1,582
Investment Income 109,500 183,775 74,275
Total Revenues 1,997,382 1,946,196 (51,186)

EXPENDITURES
Current:

Public Works 2,140,065 1,022,664 1,117,401
Community Services 453,131 298,994 154,137
Total Expenditures 2,593,196 1,321,658 1,271,538
Excess (Deficiency) of Revenues
over Expenditures (595,814) 624,538 1,220,352

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (595,814) 624,538 1,220,352 Fund Balance, Beginning 5,514,776 5,514,776 -
Fund Balance, Ending 4,918,962 $ 6,139,31 $ 4 $ 1,220,352 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, 2025
164
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 2,139,600 $ 2,264,459 $ 124,859 $
Investment Income and Other Revenues 729,620 294,574 (435,046) Total Revenues 2,869,220 2,559,033 (310,187)

EXPENDITURES
Current:

Public Works 11,406,703 2,396,975 9,009,728
Public Safety - 654 (654)
Total Expenditures 11,406,703 2,397,629 9,009,074
Excess (Deficiency) of Revenues
over Expenditures (8,537,483) 161,404 8,698,887

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (8,537,483) 161,404 8,698,887 Fund Balance, Beginning 9,192,289 9,192,289 -
Fund Balance, Ending 654,806 $ 9,353,69 $ 3 $ 8,698,887 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, 2025
165
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 600 $ 7,140 $ 6,540 $
Revenue from Other Agencies - - -
Other Revenues - 214,538 214,538
Total Revenues 600 221,678 221,078

EXPENDITURES
Current:

Public Safety 7,500 7,500 -
Community Services - - -
Total Expenditures 7,500 7,500 -
Excess (Deficiency) of Revenues
over Expenditures (6,900) 214,178 221,078

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (6,900) 214,178 221,078
Fund Balance, Beginning 51,427 51,427 -
Fund Balance, Ending 44,527 $ 265,605 $ 221,078 $
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, 2025
166
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 2,600 $ 3,457 $ 857 $
Revenue from Other Agencies 22,840 941 (21,899)
Other Revenues - - -
Total Revenues 25,440 4,398 (21,042)

EXPENDITURES
Current:

Public Safety - - -
Community Services - - -
Total Expenditures - - -
Excess (Deficiency) of Revenues
over Expenditures 25,440 4,398 (21,042)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 25,440 4,398 (21,042)
Fund Balance, Beginning 113,573 113,573 -
Fund Balance, Ending 139,013 $ 117,971 $ (21,042 $ )
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - CASP Training Special Revenue Fund
Year Ended June 30, 2025
167
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ -$
Rental Income 156,600 563,571 406,971
Other Revenues 2,400 26,368 23,968
Total Revenues 159,000 589,939 430,939

EXPENDITURES
Current:

Public Works - - -
Community Services 912,068 1,313,960 (401,892)
Total Expenditures 912,068 1,313,960 (401,892)
Excess (Deficiency) of Revenues
over Expenditures (753,068) (724,021) 29,047

OTHER FINANCING SOURCES (USES)
Transfers In 753,068 725,821 (27,247)
Transfers Out - - -
Total Other Financing
Sources (Uses) 753,068 725,821 (27,247)
Net Change in Fund Balances - 1,800 1,800
Fund Balance, Beginning - - -
Fund Balance, Ending $ - $ 1,800 $ 1,800
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Sportsplex Special Revenue Fund
Year Ended June 30, 2025
168
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ - $
Charges for Services - - -
Total Revenues - - -

EXPENDITURES
Current:

Public Safety 19,494 19,494 -
Public Works 7,060,383 450,710 6,609,673
Total Expenditures 7,079,877 470,204 6,609,673
Excess (Deficiency) of Revenues
over Expenditures (7,079,877) (470,204) 6,609,673

OTHER FINANCING SOURCES (USES)
Transfers In 468,192 (468,192) -
Transfers Out - - -
Total Other Financing
Sources (Uses) 468,192 (468,192) -
Net Change in Fund Balances (6,611,685) (470,204) 6,141,481 Fund Balance, Beginning 8,487,928 8,487,928 -
Fund Balance, Ending $ 1,876,243 $ 8,017,724 $ 6,141,481 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - City Capital Projects Fund
Year Ended June 30, 2025
169
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Taxes 1,100 $ - $ (1,100) $
Investment Income 5,100 7,577 2,477
Total Revenues 6,200 7,577 1,377

EXPENDITURES
Current:

Public Works 20,000 - 20,000
Total Expenditures 20,000 - 20,000
Excess (Deficiency) of Revenues
over Expenditures (13,800) 7,577 21,377

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (13,800) 7,577 21,377
Fund Balance, Beginning 245,225 245,225 -
Fund Balance, Ending 231,425 $ 252,802 $ 21,377 $
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, 2025
170
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Revenue from Other Agencies 310,000 $ - $ (310,000) $
Other Revenues 98,100 94,273 (3,827)
Total Revenues 408,100 94,273 (313,827)

EXPENDITURES
Current:

General Government 294,540 119,126 175,414
Total Expenditures 294,540 119,126 175,414
Excess (Deficiency) of Revenues
over Expenditures 113,560 (24,853) (138,413)

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 113,560 (24,853) (138,413)
Fund Balance, Beginning 542,196 542,196 -
Fund Balance, Ending 655,756 $ 517,343 $ (138,413) $
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, 2025
171
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income - $ - $ - $
Other Revenues 184,400 8,046 (176,354)
Total Revenues 184,400 8,046 (176,354)

EXPENDITURES
Current:

Public Safety - - -
Public Works 183,095 5,182 177,913
Total Expenditures 183,095 5,182 177,913
Excess (Deficiency) of Revenues
over Expenditures 1,305 2,864 1,559

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 1,305 2,864 1,559
Fund Balance, Beginning 685,834 685,834 -
Fund Balance, Ending 687,139 $ 688,698 $ 1,559 $
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, 2025
172
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 156,400 $ 231,100 $ 74,700 $
Other Revenues - 21,900 21,900
Total Revenues 156,400 253,000 96,600

EXPENDITURES
Current:

Public Works 1,990,099 166,201 1,823,898
Community Services - - -
Total Expenditures 1,990,099 166,201 1,823,898
Excess (Deficiency) of Revenues
over Expenditures (1,833,699) 86,799 1,920,498

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (1,833,699) 86,799 1,920,498 Fund Balance, Beginning 7,542,476 7,542,476 -
Fund Balance, Ending 5,708,77 $ 7 $ 7,629,275 $ 1,920,498 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, 2025
173
Variance -
Final Actual Positive
Budget Amounts (Negative)

REVENUES
Investment Income 171,400 $ - $ (171,400) $
Other Revenues - - -
Total Revenues 171,400 - (171,400)

EXPENDITURES
Current:

Public Works 171,400 - 171,400
Community Services - - -
Total Expenditures 171,400 - 171,400
Excess (Deficiency) of Revenues
over Expenditures - - -

OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances - - -
Fund Balance, Beginning 428,172 428,172 -
Fund Balance, Ending 428,172 $ 428,172 $ - $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Future Street Improvements Capital Projects Fund Year Ended June 30, 2025
174

INTERNAL SERVICE FUNDS
175
City of West Covina
Internal Service Funds
Year Ended June 30, 2025

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, 2025
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan OPEB Replacement Totals ASSETS
Current Assets:

Cash and Investments $ 115,871 $ 13,606,888 $ 368,325 $ 1,893,229 $ 1,042,502 $ 17,026,815 Restricted Cash and Investments 794,278 - - - 794,278 - Accounts Receivable 134,689 2,924,363 - - 68,395 3,127,447 Inventories 65,798 - - - - 65,798
Total Current Assets 316,358 17,325,529 368,325 1,893,229 1,110,897 21,014,338 Noncurrent Assets:

Capital Assets, Depreciable, Net 131,543 - - 529,603 - 661,146 Total Noncurrent Assets 131,543 - - 529,603 - 661,146
Total Assets 447,901 17,325,529 368,325 1,893,229 1,640,500 21,675,484

LIABILITIES
Current Liabilities:

Accounts Payable 171,458 289,293 - - 460,751 -
Other Accrued Liabilities 1,797 - - - - 1,797
Current Portion of Long-Term Liabilities:

Compensated Absences - - - - - -
Claims Payable 7,578,180 - - - 7,578,180 -
Total Current Liabilities 173,255 7,867,473 - - 8,040,728 - Noncurrent Liabilities:

Compensated Absences - - - - - -
Claims Payable 15,792,474 - - - 15,792,474 -
Total Noncurrent Liabilities 15,792,474 - - - 15,792,474 - Total Liabilities 173,255 23,659,947 - - 23,833,202 -

NET POSITION
Net Investment in Capital Assets 131,543 - - 529,603 - 661,146 Unrestricted 143,103 (6,334,418) 368,325 1,893,229 1,110,897 (2,818,864) Total Net Position $ 274,646 $ (6,334,418) $ 368,325 $ 1,893,229 $ 1,640,500 $ (2,157,718) 177
City of West Covina
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2025
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan OPEB Replacement Totals

OPERATING REVENUES
Charges for Services $ 1,368,752 $ 7,058,995 $ - $ - $ 81,639 $ 8,509,386 Other Revenues 141,372 3,292,789 - 489,072 - 3,923,233
Total Operating Revenues 1,510,124 10,351,784 - 570,711 - 12,432,619

OPERATING EXPENSES
Personnel Services 150,021 - - - 150,021 -
Cost of Sales, Services and Operations 1,412,009 4,504 - - 1,416,513 - Depreciation 33,526 - - 200,362 - 233,888
Insurance and Claims Paid 7,579,123 - - - 7,579,123 -
Total Operating Expenses 1,595,556 7,583,627 - 200,362 - 9,379,545 Operating Income (Loss) (85,432) 2,768,157 - 370,349 - 3,053,074

NONOPERATING REVENUES (EXPENSES)
Interest Income - - 9,998 51,391 21,073 82,462
Gain/(Loss) on Disposal of Capital Assets - - - - - -
Total Nonoperating Revenues (Expenses) - - 9,998 51,391 21,073 82,462 Income (Loss) Before Operating Transfers (85,432) 2,768,157 9,998 51,391 391,422 3,135,536 Transfers In 1,631,369 - - - 1,631,369 -
Transfers Out - - - - - -
Change in Net Position (85,432) 4,399,526 9,998 51,391 391,422 4,766,905 Net Position - Beginning of Year 360,078 (10,733,944) 358,327 1,841,838 1,249,078 (6,924,623) Net Position - End of Year $ 274,646 $ (6,334,418) $ 368,325 $ 1,893,229 $ 1,640,500 $ (2,157,718) 178
City of West Covina
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2025
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan OPEB Replacement Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments $ 8,669,353 1,419,509 $ - $ - $ 522,316 $ 10,611,178 $ Cash Paid to Suppliers for Goods and Services (8,966,970) (1,349,206) - - - (10,316,176) Cash Paid to Employees for Services - (156,968) - - - (156,968) Net Cash from Operating Activities (86,665) (297,617) - - 522,316 138,034

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Cash Received from Other Funds 1,631,369 - - - - 1,631,369 Net Cash from Noncapital and
Related Financing Activities - 1,631,369 - - - 1,631,369

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (31,410) - - (81,636) - (113,046) Net Cash from Capital and
Related Financing Activities (31,410) - - (81,636) - (113,046)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - - 9,998 51,391 21,073 82,462
Net Cash from Investing Activities - - 9,998 51,391 21,073 82,462 Net Increase (Decrease) in Cash and Cash Equivalents (118,075) 1,333,752 9,998 51,391 461,753 1,738,819 Cash and Cash Equivalents, Beginning of the Year 233,946 13,067,414 358,327 1,841,838 580,749 16,082,274 Cash and Cash Equivalents, End of the Year $ 115,871 $ 14,401,166 $ 368,325 $ 1,893,229 $ 1,042,502 $ 17,821,093 Reconciliation of Operating Income (Loss) to
Net Cash from Operating Activities:

Operating Income (Loss) $ (85,432) $ 2,768,157 $ - $ - $ 370,349 $ 3,053,074 Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 33,526 - - 200,362 - 233,888
Miscellaneous Income - - - - - -
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (1,682,431) (90,615) - - (48,395) (1,821,441) (Increase) Decrease in Inventory and Prepaid Items - (4,657) - - - (4,657) Increase (Decrease) in Accounts Payable 67,460 (265,693) - - (198,233) - Increase (Decrease) in Accrued Liabilities - 745 - - - 745 Increase (Decrease) in Compensated Absences Payable - (7,692) - - - (7,692) Increase (Decrease) in Claims Payable (1,117,650) - - - - (1,117,650) Net Cash from Operating Activities $ (297,617) (86,665) $ - $ - $ 522,316 $ 138,034 $ 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, 2025
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

217
183

2016 2017 2018 2019
Governmental activities:

Net investment in capital assets 148,989,212 $ 153,784,463 $ 153,940,332 $ 147,204,908 $ Restricted 56,902,504 50,717,656 51,130,936 57,782,735
Unrestricted (138,162,202) (144,659,629) (201,951,785) (207,212,078) Total governmental activities net pension 67,729,514 $ 59,842,490 $ 3,119,483 $ (2,224,435) $ Business-type activities:

Net investment in capital assets - $ - $ - $ - $
Restricted - - - -
Unrestricted (135,676) (252,336) (275,010) (326,385)
Total business-type activities net pension (135,676) $ (252,336) $ (275,010) $ (326,385) $ Primary government:

Net investment in capital assets 148,989,212 $ 153,784,463 $ 153,940,332 $ 147,204,908 $ Restricted 56,902,504 50,717,656 51,130,936 57,782,735
Unrestricted (138,297,878) (144,911,965) (202,226,795) (207,538,463) Total primary government net pension 67,593,838 $ 59,590,154 $ 2,844,473 $ (2,550,820) $ Source: City of West Covina Finance Department
Fiscal Year

CITY OF WEST COVINA
(accrual basis of accounting)
Last Ten Fiscal Years
Net Position by Component
184
(continued)
2020 2021 2022 2023 2024 2025
$ 139,507,563 140,572,511 $ 152,889,130 $ 152,367,256 $ 149,162,351 $ 152,179,186 $ 89,226,135 65,969,665 98,381,004 109,315,672 113,696,248 113,512,929 (255,200,972) (225,184,697) (240,284,642) (255,282,394) (249,361,966) (243,288,551) $ (26,467,274) (18,642,521) $ 10,985,492 $ 6,400,534 $ 13,496,633 $ 22,403,564 $ $ - - $ - $ - $ - $ - $
- - - - - -
38,329 (244,119) 235,307 241,833 252,092 319,525
$ 38,329 (244,119) $ 235,307 $ 241,833 $ 252,092 $ 319,525 $ $ 139,507,563 140,572,511 $ 152,889,130 $ 152,367,256 $ 149,162,351 $ 152,179,186 $ 89,226,135 65,969,665 98,381,004 109,315,672 113,696,248 113,512,929 (255,162,643) (225,428,816) (240,049,335) (255,040,561) (249,109,874) (242,969,026) $ (26,428,945) (18,886,640) $ 11,220,799 $ 6,642,367 $ 13,748,725 $ 22,723,089 $ Fiscal Year
185
2016 2017 2018 2019
Expenses:

Governmental activities:

General government $ 4,963,302 $ 5,775,173 $ 7,523,129 $ 7,515,920 Public safety 48,410,511 56,169,907 67,734,047 58,057,784 Public works 20,259,279 21,243,019 21,161,586 21,625,190 Community services 7,368,492 7,926,410 8,926,070 9,280,450 Community development 753,721 2,190,319 1,618,181 795,685 Interest on long-term debt 1,572,645 1,575,724 1,515,826 1,680,335 Total governmental activities expenses 83,327,950 94,880,552 108,478,839 98,955,364 Business-type activities:

Computer enterprise 1,638,573 1,575,066 1,305,426 1,263,693 Total business-type activities expenses 1,638,573 1,575,066 1,305,426 1,263,693 Total primary government expenses 84,966,523 96,455,618 109,784,265 100,219,057 Program revenues:

Governmental activities:

Charges for services:

General government 400,051 546,626 814,465 829,295
Public safety 3,170,579 3,201,495 3,610,467 3,839,103
Public works 8,271,744 7,714,148 8,967,472 9,156,370
Community services 1,365,482 1,491,858 2,110,943 1,903,119 Community development 425,013 416,014 264,959 465,097
Operating grants and contributions 13,317,378 10,955,031 10,285,701 12,097,219 Capital grants and contributions 1,004,826 445,980 151,966 360,872 Total governmental activities
program revenues 27,955,073 24,771,152 26,205,973 28,651,075 Business-type activities:

Charges for services:

Computer enterprise 1,413,114 1,274,318 1,199,162 1,099,028 Total business-type activities
program revenues 1,413,114 1,274,318 1,199,162 1,099,028 Total primary government
program revenues 29,368,187 26,045,470 27,405,135 29,750,103 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)
2020 2021 2022 2023 2024 2025
$ 18,929,254 7,781,252 $ 3,700,172 $ 19,222,882 $ 20,662,676 $ 5,281,216 $ 62,479,977 72,653,866 49,887,239 66,098,443 65,336,608 74,763,499 17,212,496 23,649,892 13,508,312 24,203,764 20,428,578 25,345,407 9,418,860 7,675,178 12,587,100 10,247,116 11,905,417 10,146,813 1,394,131 1,568,283 1,238,687 1,446,667 1,716,136 1,818,455 1,874,899 8,354,304 9,033,455 8,792,569 8,655,994 8,475,704 116,772,900 116,219,492 89,954,965 130,011,441 128,705,409 125,831,094 1,230,639 475,672 719,911 680,235 682,735 625,561
1,230,639 475,672 719,911 680,235 682,735 625,561
118,003,539 116,695,164 90,674,876 130,691,676 129,388,144 126,456,655 369,796 312,112 617,087 1,192,555 777,588 845,278
4,304,075 3,718,158 4,467,009 5,424,121 6,677,549 8,256,868 2,034,963 4,458,831 8,415,913 11,104,690 8,384,949 8,877,986 2,438,156 697,351 1,620,427 1,957,418 1,549,429 1,634,657 6,780,115 - - - - -
19,989,920 21,764,524 29,598,365 18,983,157 22,201,169 22,557,825 582,023 10,621,147 17,666,351 15,354,938 15,149,924 14,689,197 36,499,048 41,572,123 62,385,152 54,016,879 54,740,608 56,861,811 1,249,195 758,120 916,458 686,731 692,994 692,994
1,249,195 758,120 916,458 686,731 692,994 692,994
37,748,243 42,330,243 63,301,610 54,703,610 55,433,602 57,554,805 Fiscal Year
187
2016 2017 2018 2019
Net revenues (expenses):

Governmental activities $ (55,372,877) $ (70,109,400) $ (82,272,866) $ (70,304,289) Business-type activities (225,459) (300,748) (106,264) (164,665) net primary government
revenues (expenses) (55,598,336) (70,410,148) (82,379,130) (70,468,954) General revenues and other changes
in net position:

Governmental activities:

Taxes:

Property taxes 22,352,163 23,994,740 25,392,860 26,365,067 Sales tax 17,228,237 16,503,563 17,449,827 17,464,609
Franchise tax 3,540,011 3,698,184 4,011,817 4,207,765
Other taxes 6,485,394 6,725,309 7,692,437 9,158,794
Investment income (566,064) 4,452,938 559,164 2,016,573 Other general revenues 4,236,920 6,847,642 9,256,591 5,747,563 Transfers 101,775 - - -
Extraordinary gain (loss) 9,789,266 - - -
Total governmental activities 63,167,702 62,222,376 64,362,696 64,960,371 Business-type activities:

Investment income 3,513 2,070 884 1,083
Other revenues - 182,018 82,706 112,207
Transfers (101,775) - - -
Total business-type activities (98,262) 184,088 83,590 113,290 Total primary government 63,069,440 62,406,464 64,446,286 65,073,661 Changes in net position:

Governmental activities 7,794,825 (7,887,024) (17,910,170) (5,343,918) Business-type activities (323,721) (116,660) (22,674) (51,375) Total primary government
change in net position $ 7,471,104 $ (8,003,684) $ (17,932,844) $ (5,395,293) Source: City of West Covina Finance Department
Fiscal Year
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)

CITY OF WEST COVINA
188
(continued)
2020 2021 2022 2023 2024 2025
$ (80,273,852) $ (74,647,369) $ (27,569,813) $ (75,994,562) $ (73,964,801) $ (68,969,283) 18,556 282,448 196,547 6,496 10,259 67,433
(80,255,296) (74,364,921) (27,373,266) (75,988,066) (73,954,542) (68,901,850) 27,422,706 30,108,110 31,348,677 33,822,147 35,055,298 36,859,582 17,033,647 20,858,803 23,101,668 23,526,119 26,575,421 25,496,967 4,445,101 4,644,360 4,806,348 5,237,769 5,052,041 5,369,545 5,026,703 4,571,270 4,721,569 4,815,955 4,832,080 4,713,000 2,682,794 223,485 (1,082,667) 2,019,179 4,254,045 3,625,993 7,244,815 5,520,479 2,126,984 1,988,435 2,431,663 1,811,127 - - - - - -
- - - - - -
63,855,766 65,926,507 65,022,579 71,409,604 78,200,548 77,876,214 - - - - - -
63,710 - - - - -
- - - - - -
63,710 - - - - -
63,919,476 65,926,507 65,022,579 71,409,604 78,200,548 77,876,214 (16,418,086) (8,720,862) 37,452,766 (4,584,958) 4,235,747 8,906,931 82,266 282,448 196,547 6,496 10,259 67,433
$ (16,335,820) $ (8,438,414) $ 37,649,313 $ (4,578,462) $ 4,246,006 $ 8,974,364 Fiscal Year
189
2016 2017 2018 2019
Expenses:

General government $ 4,963,302 $ 5,775,173 $ 7,523,129 $ 7,515,920 Public safety 48,410,511 56,169,907 67,734,047 58,057,784 Public works 20,259,279 21,243,019 21,161,586 21,625,190 Community services 7,368,492 7,926,410 8,926,070 9,280,450 Community development 753,721 2,190,319 1,618,181 795,685 Interest on long-term debt 1,572,645 1,575,724 1,515,826 1,680,335 Total expenses 83,327,950 94,880,552 108,478,839 98,955,364 Program revenues:

Charges for services:

General government 400,051 546,626 814,465 829,295
Public safety 3,170,579 3,201,495 3,610,467 3,839,103
Public works 8,271,744 7,714,148 8,967,472 9,156,370
Community services 1,365,482 1,491,858 2,110,943 1,903,119 Community development 425,013 416,014 264,959 465,097
Operating grants and contributions 13,317,378 10,955,031 10,285,701 12,097,219 Capital grants and contributions 1,004,826 445,980 151,966 360,872 Total program revenues 27,955,073 24,771,152 26,205,973 28,651,075 Net program revenues (expenses) (55,372,877) (70,109,400) (82,272,866) (70,304,289) General revenues and other changes
in net position:

Taxes:

Property taxes 22,352,163 23,994,740 25,392,860 26,365,067 Sales tax 17,228,237 16,503,563 17,449,827 17,464,609
Franchise tax 3,540,011 3,698,184 4,011,817 4,207,765
Other taxes 6,485,394 6,725,309 7,692,437 9,158,794
Motor vehicle in lieu, unrestricted - - - -
Investment income (566,064) 4,452,938 559,164 2,016,573 Other general revenues 4,236,920 6,847,642 9,256,591 5,747,563 Transfers 101,775 - - -
Extraordinary gain (loss) 9,789,266 - - -
Total governmental revenues
and other changes 63,167,702 62,222,376 64,362,696 64,960,371 Changes in net position $ 7,794,825 $ (7,887,024) $ (17,910,170) $ (5,343,918) Source: City of West Covina Finance Department
Fiscal Year

CITY OF WEST COVINA
Changes in Net Position
Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
190
(continued)
2020 2021 2022 2023 2024 2025
$ 18,929,254 7,781,252 $ 3,700,172 $ 19,222,882 $ 20,662,676 $ 5,281,216 $ 62,479,977 72,653,866 49,887,239 66,098,443 65,336,608 74,763,499 17,212,496 23,649,892 13,508,312 24,203,764 20,428,578 25,345,407 7,675,178 9,418,860 12,587,100 10,247,116 11,905,417 10,146,813 1,568,283 1,394,131 1,238,687 1,446,667 1,716,136 1,818,455 8,354,304 1,874,899 9,033,455 8,792,569 8,655,994 8,475,704 116,219,492 116,772,900 89,954,965 130,011,441 128,705,409 125,831,094 312,112 369,796 617,087 1,192,555 777,588 845,278
3,718,158 4,304,075 4,467,009 5,424,121 6,677,549 8,256,868 4,458,831 2,034,963 8,415,913 11,104,690 8,384,949 8,877,986 697,351 2,438,156 1,620,427 1,957,418 1,549,429 1,634,657 - 6,780,115 - - - -
21,764,524 19,989,920 29,598,365 18,983,157 22,201,169 22,557,825 10,621,147 582,023 17,666,351 15,354,938 15,149,924 14,689,197 36,499,048 41,572,123 62,385,152 54,016,879 54,740,608 56,861,811 (80,273,852) (74,647,369) (27,569,813) (75,994,562) (73,964,801) (68,969,283) 27,422,706 30,108,110 31,348,677 33,822,147 35,055,298 36,859,582 17,033,647 20,858,803 23,101,668 23,526,119 26,575,421 25,496,967 4,445,101 4,644,360 4,806,348 5,237,769 5,052,041 5,369,545 5,026,703 4,571,270 4,721,569 4,815,955 4,832,080 4,713,000 - - - - - -
2,682,794 223,485 (1,082,667) 2,019,179 4,254,045 3,625,993 7,244,815 5,520,479 2,126,984 1,988,435 2,431,663 1,811,127 - - - - - -
- - - - - -
63,855,766 65,926,507 65,022,579 71,409,604 78,200,548 77,876,214 $ (16,418,086) $ (8,720,862) $ 37,452,766 $ (4,584,958) $ 4,235,747 $ 8,906,931 Fiscal Year
191
2016 2017 2018 2019
Expenses:

Computer Enterprise $ 1,638,573 $ 1,575,066 $ 1,305,426 $ 1,263,693 Total expenses 1,638,573 1,575,066 1,305,426 1,263,693
Program revenues:

Charges for services:

Computer Enterprise 1,413,114 1,274,318 1,199,162 1,099,028 Total program revenues 1,413,114 1,274,318 1,199,162 1,099,028 Net revenues (expenses) (225,459) (300,748) (106,264) (164,665) General revenues and other changes
in net position:

Investment income 3,513 2,070 884 1,083
Other revenues - 182,018 82,706 112,207
Transfers (101,775) - - -
Total general revenues
and other changes (98,262) 184,088 83,590 113,290
Changes in net position $ (323,721) $ (116,660) $ (22,674) $ (51,375) Source: City of West Covina Finance Department
Fiscal Year

CITY OF WEST COVINA
Changes in Net Position
Business-Type Activities
Last Ten Fiscal Years
(accrual basis of accounting)
192
(continued)
2020 2021 2022 2023 2024 2025
$ 475,672 1,230,639 $ $ 719,911 $ 680,235 $ 682,735 $ 625,561 475, 1,230,639 672 719,911 680,235 682,735 625,561
758, 1,249,195 120 916,458 686,731 692,994 692,994
758, 1,249,195 120 916,458 686,731 692,994 692,994
18,556 282,448 6,496 196,547 10,259 67,433
- - - - - -
63,710 - - - - -
- - - - - -
63,710 - - - - -
$ 82,266 $ 282,448 $ 196,547 $ 6,496 $ 10,259 $ 67,433
Fiscal Year
193
2016 2017 2018 2019
General Fund:

Nonspendable $ 7,129,779 $ 6,982,268 $ 9,952,978 $ 8,976,583 Restricted - - - -
Assigned - - 320,200 320,200
Unassigned 15,032,610 14,119,078 11,979,653 9,884,913
Total general fund $ 22,162,389 $ 21,101,346 $ 22,252,831 $ 19,181,696 All other governmental funds:

Nonspendable $ 5,277,203 $ 4,980,450 $ 110,833 $ 99,167 Restricted 51,467,448 45,082,696 49,600,866 57,840,755
Assigned 5,065,065 2,820,665 2,004,895 1,107,138
Unassigned (531,412) (1,100,860) (710,218) (692,305)
Total all other governmental funds $ 61,278,304 $ 51,782,951 $ 51,006,376 $ 58,354,755 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)
2020 2021 2022 2023 2024 2025
$ 4,009,651 7,086,958 $ 3,380,136 $ 3,358,665 $ 3,356,089 $ 3,120,629 $ 9,440 7,650 8,287 16,069 17,880 20,034
- - - - - -
12,580,716 21,468,986 20,770,457 17,654,008 18,484,968 20,988,376 $ 19,675,324 $ 25,488,077 $ 24,158,880 $ 21,028,742 $ 21,858,937 $ 24,129,039 $ 82,420 $ - $ 11,989 $ 90,943 $ 107,651 $ 59,008
64,044,695 92,198,163 100,732,082 107,980,761 119,703,559 123,397,036 1,786,815 9,687,492 6,601,977 7,617,849 8,487,928 8,017,724 (1,158,958) (228,169) (164,865) (22,661) (24,225) (753,507) $ 64,754,972 $ 101,657,486 $ 107,181,183 $ 115,666,892 $ 128,274,913 $ 130,720,261 Fiscal Year
195
2016 2017 2018 2019
Revenues:

Taxes $ 54,237,649 $ 55,502,969 $ 59,255,716 $ 62,477,442 Special assessments 5,550,657 5,318,497 6,077,861 6,347,182 Licenses and permits 1,156,613 1,037,389 1,089,850 1,140,622 Fines and forfeitures 796,989 894,618 1,290,187 1,318,333 Investment income (570,132) 4,448,607 551,948 2,008,971 Rental income 529,833 604,817 649,968 647,749
Intergovernmental 11,218,711 10,193,278 7,920,178 12,581,261 Charges for services 7,731,236 7,359,139 8,681,704 7,473,923 Other 1,487,103 2,129,531 4,229,895 1,142,659
Total revenues 82,138,659 87,488,845 89,747,307 95,138,142 Expenditures
Current:

General government 5,103,814 6,214,682 5,700,461 6,828,020 Public safety 50,962,883 54,480,972 53,087,630 58,205,797 Public works 15,509,267 15,328,717 17,635,489 14,800,936 Community services 6,864,180 10,824,395 6,975,178 7,290,775 Community development 898,714 2,198,881 1,182,255 1,086,128 Debt service:

Principal retirement 2,027,461 7,931,202 1,958,918 13,353,918 Interest and fiscal charges 1,574,753 1,566,392 1,501,956 1,691,316 Cost of issuance - - - 389,726
Total expenditures 82,941,072 98,545,241 88,041,887 103,646,616 Excess (deficiency) of revenues
over (under) expenditures (802,413) (11,056,396) 1,705,420 (8,508,474) Other financing sources (uses):

Transfers in 4,831,038 5,643,232 3,902,056 149,121
Transfers out (10,812,296) (5,643,232) (5,232,566) (9,121) Acquisition under capital leases 2,568,446 500,000 - -
Issuance of bonds - - 24,165,000 -
Premium of refunding bonds issued - - 1,380,718 -
Payment to refunded bond escrow agent - - (12,900,000) - Extraordinary gain (loss) - - - -
Total other financing sources (uses) (3,412,812) 500,000 (1,330,510) 12,785,718 Special Item
Payment towards UAL - - - -
Total Special Item - - - -
Net change in fund balances $ (4,215,225) $ (10,556,396) $ 374,910 $ 4,277,244 Debt service as a percentage of
noncapital expenditures 4.70% 10.29% 4.18% 15.08%
Source: City of West Covina Finance Department
Fiscal Year

CITY OF WEST COVINA
Changes in Fund Balances of Governmenta
Last Ten Fiscal Years
(modified accrual basis of accounting)
196
(continued)
2020 2021 2022 2023 2024 2025
$ 72,496,610 62,588,256 $ 77,294,614 $ 84,173,323 $ 87,368,883 $ 89,166,908 $ 6,837,731 6,490,254 7,040,726 7,001,653 7,205,542 7,270,219 1,528,117 1,491,744 2,780,660 4,667,301 2,279,923 2,553,750 380,169 921,872 508,463 902,570 911,167 844,646
(18,511) 2,677,045 (1,311,234) 2,879,053 6,072,172 5,740,763 952,185 700,455 1,459,129 1,194,252 1,171,254 1,566,408 11,623,792 15,386,915 20,743,307 12,041,789 14,618,397 13,214,302 6,376,218 7,690,819 10,011,122 8,011,824 8,629,643 10,014,345 2,785,758 3,783,990 7,140,273 4,922,484 3,790,171 2,978,805 102,962,069 101,731,350 125,667,060 125,794,249 132,047,152 133,350,146 6,910,013 6,488,092 5,047,088 7,252,624 9,534,513 6,494,325 60,290,745 58,857,571 59,843,680 57,073,164 58,232,370 63,429,486 15,356,778 17,262,224 28,481,999 25,391,260 18,706,486 30,902,704 6,172,738 7,263,052 11,085,748 8,744,274 10,506,587 8,679,915 1,214,558 1,568,283 1,238,687 1,446,667 1,716,136 1,818,455 1,833,918 2,428,918 5,869,299 6,440,885 6,695,077 7,107,600 1,932,807 5,419,621 9,063,717 8,916,689 8,751,132 8,570,842 1,083,165 - - - - -
94,852,222 99,230,261 120,630,218 115,265,563 114,142,301 127,003,327 6,879,128 3,731,808 5,036,842 10,528,686 17,904,851 6,346,819 1,494,913 197,353,567 19,667,127 16,881,947 16,072,308 14,694,867 (1,676,955) (201,320,249) (20,509,469) (22,055,062) (20,385,108) (16,326,236) 196759 3,900,000 - - - -
210,697,048 - - - - -
- - - - - -
- - - - - -
- - - - - -
14,717 210,630,366 (842,342) (5,173,115) (4,312,800) (1,631,369) (172,543,016) - - - - -
- (172,543,016) - - -
$ 6,893,845 $ 41,819,158 $ 4,194,500 $ 5,355,571 $ 13,592,051 $ 4,715,450

3.97% 7.91% 15.38% 14.47% 14.22% 12.34%
Fiscal Year
197
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Non-Unitary Unsecured Exemptions Value
2016 7,458,200 - 14,738 (95,915) 7,377,023
2017 7,829,861 - 11,212 (100,253) 7,740,820
2018 8,229,924 - 9,185 (84,900) 8,154,209
2019 8,718,033 - 10,356 (101,379) 8,627,010
2020 9,082,038 - 11,724 (79,629) 9,014,133
2021 9,458,367 - 11,927 (119,220) 9,351,074
2022 9,768,205 - 11,452 (111,904) 9,667,753
2023 10,391,807 12,899 (113,768) 10,290,938
2024 10,922,868 13,559 (119,581) 10,816,846
2025 11,444,591 14,206 (125,293) 11,333,504
NOTE:

Source: HdL Coren & Cone, Los Angeles Assessor 2014 - 2021/22 Combined Tax Rolls / Assessed Value of Taxable Property
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
162,488 2,795,635 (189,554) 2,768,569 10,145,592 14.138% 165,375 3,028,206 (170,529) 3,023,052 10,763,872 14.165% 163,326 3,103,316 (154,330) 3,112,312 11,266,521 14.109% 167,442 3,305,249 (168,062) 3,304,629 11,931,639 14.221% 169,859 3,483,295 (195,530) 3,457,624 12,471,757 14.236% 168,578 3,604,156 (222,612) 3,550,122 12,901,196 14.262% 167,649 3,688,744 (209,821) 3,646,572 13,314,325 14.280% 185,953 3,956,501 (230,522) 3,911,932 14,202,870 14.295% 195,456 4,158,693 (242,303) 4,111,846 14,928,692 14.311% 204,792 4,357,330 (253,876) 4,308,246 15,641,750 14.323% Successor Agency (SA) of the former Community Development Commission (CDC) 199
2016 2017 2018 2019
Basic Levy1 1.00000 1.00000 1.00000 1.00000
Baldwin Park Unified 0.16288 0.10510 0.13039 0.12402
Bassett Unified School District 0.15771 0.16781 0.17443 0.16349 Covina Valley Unified School District 0.11062 0.12581 0.14205 0.13976 Hacienda-La Puente Unified 0.06394 0.06600 0.10531 0.10706 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Mt. San Antonio College 0.02154 0.02400 0.02371 0.02435 Rowland Heights Unified 0.12426 0.12444 0.11841 0.11861 Rowland Heights Usd Ds 2000 Series B 0.00000 0.00000 0.00000 0.00000 Rowland Unified 0.00000 0.00000 0.00000 0.00000
Walnut Valley Unified 0.09285 0.06601 0.07388 0.10582
West Covina Municipal Maint. Dist. 0.18310 0.18310 0.18310 0.18310 West Covina Unified 0.04205 0.04914 0.09514 0.09795
Total Direct & Overlapping2
Tax Rates 1.96245 1.91492 2.04992 2.06766
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 0.14138 0.14165 0.14109 0.14221
Source: Los Angeles County Assessor 2015/16 - 2024/25 Tax Rate Table

CITY OF WEST COVINA
(rate per $100 of assessed value)
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates
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 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
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% 2 Overlapping rates are those of local and county
governments that apply to property owners within the
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
Fiscal Year
200
(continued)
2020 2021 2022 2023 2024 2025

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.13032 0.19256 0.18029 0.17544 0.12783 0.10924

0.14196 0.14705 0.13911 0.13876 0.17596 0.18425

0.13521 0.12658 0.12995 0.12612 0.12325 0.11110

0.08252 0.08261 0.08511 0.08491 0.10215 0.10360

0.00350 0.00350 0.00350 0.00350 0.00350 0.00700

0.04781 0.04459 0.04608 0.04267 0.03806 0.04113

0.10760 0.10905 0.00000 0.00000 0.00000 0.00000

0.00000 0.00000 0.00000 0.00000 0.00000 0.01579

0.00000 0.00000 0.11128 0.10909 0.11623 0.11343

0.09538 0.09893 0.10066 0.10118 0.10694 0.10681

0.18310 0.18480 0.18480 0.18480 0.18480 0.18480

0.08192 0.09980 0.07968 0.09317 0.06328 0.09698

2.00932 2.08947 2.06046 2.05964 2.04201 2.07413

0.13820 0.13820 0.13820 0.13820 0.13820 0.13820

N/A N/A N/A N/A N/A N/A

0.14236 0.14262 0.14280 0.14295 0.14311 0.14323
Fiscal Year
201
Page intentionally left blank.
202
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 $ 295,652,276 1 1.89% 224,708,376 $ 1 2.21% GREF Eastland Center LP 202,023,184 2 1.29%
Colony at the Lakes 188,939,712 3 1.21%
Walnut Ridge Apartments LP 106,338,785 4 0.68%
CLPF 624 South Glendora Avenue LP 101,663,637 5 0.65%
CLPF Verandas LP 95,804,498 6 0.61%
Envision WC MB RE LLC 89,371,290 7 0.57%
Twelve 31 Partners LP 83,596,140 8 0.53%
TPA Nasch LLC 63,443,041 9 0.41%
Go West Covina Owners LLC 60,811,380 10 0.39%
Barranca Medici LP
Gateway Crescent LLC
Eastland Tower Partnership 151,417,830 2 1.49%
Glendora Ave Properties LLC 51,748,570 4 0.51%
TPA of Nasch LLC 45,728,385 8 0.45%
Hassen Real Estate Partnership 37,062,125 10 0.37%
301 South Glendora Avennue Apts 49,609,290 5 0.49%
CSMC 2006 C5 North Barranca St 46,100,000 7 0.45%
Bently Real Estate LLC 40,595,815 9 0.40%
CIP 2014 SG Covina Owner LLC 46,800,000 6 0.46%
KOR BAM Sunset Plaza LLC
La Palma Royale LLC 56,969,885 3 0.56%
Totals $ 1,287,643,943 8.23% $ 750,740,276 7.4%
Twelve 31 Partners LP
Citrus Gardens Apartments LP
Non UnitaryTax Roll
Principal Property Taxpayers
2025 2016
Current Year and Nine Years Ago

CITY OF WEST COVINA
Source: HdL Coren & Cone; Los Angeles County Assessor 2015-16 and 2024-25 Combined Tax Rolls and the 203
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 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% 2025 16,626,655 860,616 5.18% 230,287 1,090,903 6.56%
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 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
2025 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 Financed Total Total
Ended Revenue Purchase Governmental Business-type
June 30 Bonds Loans Obligations Activities Activities
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 -
2025 219,483,983 5,789,171 5,499,859 230,773,013 -
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% 565 60,923,440
53,490,515 1.95% 494
51,531,597 1.77% 477
49,442,679 1.62% 466
47,608,761 1.50% 435
255,876,891 7.70% 2,364
251,175,890 6.78% 2,328
244,681,900 6.16% 2,243
237,933,718 5.81% 2,223
230,773,013 5.43% 2,158
207
Fiscal Year Lease Financed Percent of
Ended Revenue Purchase Assessed Per
June 30 Bonds Obligations Total Value(1) Capita
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% 363
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 1.67% 2,124
2024 225,782 5,784 231,566 1.55% 2,109
2025 219,484 5,500 224,984 1.44% 2,053
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 $ 0.806 79,240 9,835,780 $
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 37,000,000 1.277 472,408 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 - Lease Revenue Bonds & Notes/Loans Payable 219,483,983 Total Direct and Overlapping Debt $ 542,509,658
Source: HdL Coren & Cone, Los Angeles, County Assessor and Auditor Combined 2020-21 Lien Date Tax Rolls Direct and Overlapping Debt
June 30, 2025

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
2016 2017 2018 2019
Assessed valuation $ 7,377,023 $ 7,740,820 $ 8,154,209 $ 8,627,010 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,844,256 1,935,205 2,038,552 2,156,753 Debt limit percentage 15% 15% 15% 15%
Debt limit 276,638.36 290,280.75 305,782.84 323,512.88
Total net debt applicable to limitation - - - -
Legal debt margin $ 276,638 $ 290,281 $ 305,783 $ 323,513 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
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
Fiscal Year
210
(continued)
2020 2021 2022 2023 2024 2025
$ 9,351,074 9,014,133 $ 9,667,753 $ 10,290,938 $ 10,816,846 $ 11,333,504 $ 25% 25% 25% 25% 25% 25%
2,337,769 2,253,533 2,416,938 2,572,735 2,704,212 2,833,376 15% 15% 15% 15% 15% 15%
350,665.28 338,029.99 362,540.74 385,910.18 405,631.73 425,006.40 - - - - - -
$ 338,030 $ 350,665 $ 362,541 $ 385,910 $ 405,632 $ 425,006

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Fiscal Year
211
Fiscal Year
Ended
June 30 Revenue Principal Interest Coverage
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 1,356 25.06
2020 70,935 1,255 1,918 22.36
2021 72,992 1,350 5,420 10.78
2022 81,019 5,100 8,845 5.81
2023 85,678 5,495 8,706 6.03
2024 90,226 5,855 8,552 6.26
2025 93,476 6,245 8,380 6.39
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
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 1,425 206 1.93
2024 2,082 1,255 160 1.47
2025 2,511 1,290 117 1.78
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 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
Assessment District Bond has been paid off
213
Per
Personal Capita Annual
Calendar Income Personal Unemployment
Year Population (in thousands) Income Rate
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 109,501 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 107,037 4,093,297 $ 37,406 5.2%
2025 106,923 4,246,796 $ 39,718 4.4%
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 Emanate Health Queen of the Valley 1 3.03% 1,591 1,613 1 3.13% Options for Learning 2 1.69% N/A* N/A* N/A* 900
Porto's Bakery 3 0.78% 417 N/A* N/A* -
Interspace/Concorde Battery Corporation 245 4 0.46% 6 0.48% 245 Macy's 5 0.45% 238 5 0.57% 289
Target Store #T1028 222 6 0.42% 8 0.42% 215
Target Store #T-2147 7 0.41% N/A* N/A* N/A* 219
Premier Healthcare Services LLC 8 0.36% N/A* N/A* N/A* 192 The Home Depot #8463 9 0.33% N/A* N/A* N/A* 174
B.J.'s Restaurant & Brewery 10 0.29% 155 176 10 0.35%
WC Unified School District N/A* N/A* N/A* 2 2.88% 1,466 City of West Covina N/A* 0.82% 439 339 3 0.67%
Walmart Store #5954 N/A* N/A* - 4 0.59% 300
JC Penny Corp Inc. #1505-7 N/A* N/A* N/A* 7 0.43% 220
SGV Newspaper Group N/A* N/A* N/A* 9 0.35% 180
Totals 4,814 9.03% 5,021 9.87%
*N/A- Numbers not available
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
2025 2016
Principal Employers
Current Year and Nine Years Ago

CITY OF WEST COVINA
215
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216
Full-time and Part-time City Employees by Function
Function 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government 32 42 46 36 32 38 48 34 38 34
Public safety 268 282 259 238 237 259 242 248 251 248
Public works 71 75 56 44 - - -
Public Services - - - - 25 32 41 51 39 39
Community services 41 87 64 64 27 22 22 59 74 79
Community development 2 1 1 3 12 13 19 24 35 39
Total 487 426 385 333 364 372 416 437 439 414
Source: City of West Covina Finance Department
Last Ten Fiscal Years

CITY OF WEST COVINA
Fiscal Year
217
Function/Program 2016 2017 2018 2019
Public Safety:

Police:

Total arrests 2,624 2,818 3,080 2,538
Calls for police service (1) 72,368 74,898 84,850 73,713 Graffiti sites cleaned N/A N/A N/A N/A
Fire:

Emergency responses 9,494 9,353 9,383 9,289
Fire inspections 778 816 805 1,009
Public Services:

Building permits issued 5,038 1,547 1,399 2,938
Graffiti sites cleaned (2) 13,964 6,694 2,391 3,077
Community Services:

Recreation class registrations (3) 7,129 7,500 17,902 26,482 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
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 Public Works starting fiscal year 2015-2016.

The increase in recreation class registrations in FY18 relates to inclusions of daycare classes.

Fiscal Year
218
(continued)
2020 2021 2022 2023 2024 2025
1,266 2,037 1,266 1,695 1,772 1,804
61,353 68,605 68,221 68,565 68,480 67,841

N/A N/A N/A N/A N/A N/A
9,405 8,944 10,286 10,189 10,297 9,806
964 920 1,079 1,582 1,849 851
3,701 3,022 4,941 2,494 2,950 4,479
2,632 3,140 4,363 4,782 4,179 4,363

65 8,075 3,533 6,570 28,896 22,546
Fiscal Year
219
2016 2017 2018
Public Safety:

Police:

Stations 1 1 1
Fire:

Stations 5 5 5
Public works:

Streets (miles) 240.3 240.3 240.3
Streetlight poles 826 674 674
Streelight fixtures 1,109 420 420
Traffic signals 114 97 97
Parks and recreation:
1 1 1
Parks 16 16 16
Community centers 4 4 4
Wastewater:

Sanitary sewers (miles) 238.9 227.0 227.0
Storm sewers (miles) 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 2025
1 1 1 1 1 1 1
5 5 5 5 5 5 5
240.3 240.3 240.3 240.3 240.3 240.3 240.3
674 674 674 674 674 674 674
420 420 420 420 420 420 420
97 97 97 97 97 97 97
1 1 1 1 1 1 1
16 16 16 16 16 16 16
4 4 4 4 4 4 4
227.0 227.0 227.0 227.0 227.0 227.0 227.0

26.0 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 25, 2026. The City’s financial statements include a separate column for the Air Quality Improvement Special Revenue Fund in the non-major governmental funds combining financial statements.

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.

ATTACHMENT NO. 2
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 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. This included tests for compliance with provisions of Assembly Bill 2766 Chapter 1705 (44220 through 44247).

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.

June 25, 2026
June 25, 2026
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, 2025. 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 July 28, 2025. 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. 101, Compensated Absences. 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 June 25, 2026.

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
2024- 2025
Financial Report
This report provides a snapshot of the City’s financial information for Fiscal Year (FY) ended June 30, 2025 presented in a user-friendly format. For additional detail, please see the City's complete Annual Comprehensive Financial Report for fiscal year ending June 30, 2025 available at www.westcovina.org.

ATTACHMENT NO. 4
www.westcovina.org 2
107K
2025
Population

39.7K 4.4%
2025 Per Capita 2025 Annual
Personal Income Unemployment Rate
City of West Covina Community Financial Report FY 2024-25 City Overview

CITY COUNCIL
Tony Wu, Mayor
Letty Lopez‐Viado, Mayor Pro Tem
Ollie Cantos, Councilmember
Rosario Diaz, Councilmember
Brian Gutierrez, Councilmember

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

CITY MANAGER
Milan Mrakich

EXECUTIVE MANAGEMENT TEAM
Roxanne Lerma, Assistant City Manager
Nilesh Mehta, Assistant City Manager
Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Karen Ogawa, Finance Director
Greg McKeown, Fire Chief
Tony Cortina, 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, 2025.

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 $394.7M $383.0M
Bonds
$219.5
Total OPEB Liability
$56.1
Net Pension Liability
$53.7
Other
$42.5
Compensated
Absences
$3.8
48%
www.westcovina.org 3
As of June 30, 2025, the City’s total net position was $22.7 million. This is an increase of $9.0 million from the prior year. This increase is due to an increase in assets of $11.7 million, a $3.9 million decrease in deferred inflows of resources, and a $11.4 million decrease in lease revenue bond liabilities. Additionally, the City’s total governmental funds reported combined ending fund balances of $154.8 million, an increase of $4.7 million in comparison with the prior fiscal year of $150.1 million.

Statement of Net Position
City of West Covina Community Financial Report FY 2024-25 The City's Net
position increased by

65.3% or $9.0M
over FY 2023-24
Assets Increased by

3.1% or $11.7M
Liabilities Decreased
by 3.3% or $13.1M
Bonds make up the
majority of this liability
Capital Assets make up 48%
The City's net position may serve as a
useful indicator of the government’s
financial position over time.

Capital
Deferred
Inflows
$15.0M $19.0M
Total
Net
Position
$22.7M $13.7M
Deferred
Outflows
$29.9M $49.7M
2025 2024
Liabilities $386.9M $400.0M
Notes & Loans
$11.3
Nonspendable Restricted Assigned
Unassigned
2021 2022 2023 2024 2025
0 5
10 15
20 25
30 Taxes

77.9%
Charges for Services

10.5%
Other Revenues
8%
Licenses
and Permits

2.7%
Public Safety

79.7%
Public Works

8.6%
General
Government

7.2%
Beginning Fund
Balance
$21.9M
Revenue Less
Expenditures
+ $18.5M
Net Transfers - $16.3M
Ending Fund
Balance
= $24.1M
General Fund
www.westcovina.org 4
$93.5 Million
Revenue
$74.9 Million
Expenditures
Changes in General Fund Fund Balance by
Fiscal Year (Millions)
City of West Covina Community Financial Report FY 2024-25 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 $21.0 million, while total fund balance was $24.1 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 28.0% of total general fund expenditures, while total fund balance represents 32.2% of that same amount. The nonspendable portion of fund balance in the amount of $3.1 million mainly consists of Land Held for Resale in the amount of $3.0 million.

License + Permits

2.7%
Comm Svcs

3.5%
Community Development

1.0%
AGENDA ITEM NO. 11

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: August 18, 2026
TO: Mayor and City Council
FROM: Milan Mrakich, City Manager
SUBJECT: CONSIDERATION OF PURCHASE OF PALO ALTO NETWORKS CITY FIREWALL

AND ENDPOINT PROTECTION UPGRADE
RECOMMENDATION:

It is recommended that the City Council:

Authorize the City Manager to purchase the Palo Alto Networks, Inc. Firewall, Endpoint Protection, and Cloud Manager upgrade from CDW utilizing the NASPO ValuePoint Master Agreement (Contract # AR3229), with an overall maximum compensation amount of $700,000; and

1. Authorize the City Manager to negotiate and execute any agreements and documents necessary to purchase the Palo Alto Networks, Inc. Firewall, Endpoint Protection, and Cloud Manager upgrade from CDW, in such form as approved by the City Attorney.

2. BACKGROUND:

The City’s network security infrastructure is critically dependent on network perimeter-edge Firewalls and Endpoint systems to protect against external threats and ensure data integrity.

The City’s current security network design uses Firewalls configured in a redundant high-availability setup, and provides strong Endpoint security features, ensuring continuous computer protection and operational network stability.

The City’s network security infrastructure firewalls were last upgraded in 2018, and the then-selected Palo Alto hardware is now end-of-life. These Palo Alto Firewall systems are network appliances that require regular patches, security updates, and vendor support, which is now unavailable. The core Palo Alto brand Firewall hardware currently installed at the City Hall and Police Department buildings need to be replaced and upgraded with new Endpoint Protection and Cloud Manager.

DISCUSSION:

Firewall and Endpoint Protection serves as the City's first line of defense against unauthorized access, cyberattacks, and data breaches. This Firewall, Endpoint Protection, and Cloud Manager upgrade allows the City to update the security infrastructure hardware and service to incorporate the latest security protocols, threat intelligence, and protection mechanisms required to defend modern infrastructure.

It is essential for the City to maintain and keep its network and cybersecurity infrastructure current in order to provide proper security measures and useful life of the equipment. For this reason, the City must procure and install replacements for existing Firewall hardware and upgrade the Endpoint Protection and Network Management System to comply with the manufacturer’s support life cycle.

Updating the current systems will allow the City to continue maintaining the security of City computers and network systems and protect them from data security risks and vulnerabilities.

Revealing detailed technical specifications of these systems could expose potential vulnerabilities or otherwise increase the likelihood of an attack on the City's critical infrastructure.

CDW is a value-added reseller for the City’s current network hardware, which offers modern solutions that meet the City’s requirements. The proposed replacement Firewalls and Endpoint Protection systems are designed to better support the City’s
current needs, as the existing infrastructure was implemented prior to the transition to a hybrid workforce model, offering performance improvements for handling remote connectivity traffic, video conferencing, computer cybersecurity and data storage efficiency. Furthermore, remaining with the same manufacturer (Palo Alto) will simplify the migration process, limit downtime, and ensure a smooth transition.

The NASPO ValuePoint Master Agreement (Contract # AR3229) with Palo Alto Networks (Attachment No. 2) can be leveraged by all California state and local government agencies, including the City of West Covina. By utilizing this NASPO Master Agreement, the City of West Covina is able to obtain the deepest discounts on the cost to upgrade the Firewall and Endpoint Protection by Palo Alto Networks in the State of California.

Pursuant to Section 2-335(6) of the West Covina Municipal Code, purchases made through a cooperative purchasing agreement or program are exempt from the informal and formal competitive procurement requirements of the Municipal Code provided that (a) the Purchasing Officer determines the purchase is in the best interest of the City, (b) the Purchasing Officr determines the purchase is to the City's economic advantage, and (c) the agreement was competitively awarded using a process that complies with policies, rules, and regulations as approved by the Purchasing Officer. The Purchasing Officer has determined that the requirements are met. Therefore, the purchase is exempt from competitive procurement requirements.

LEGAL REVIEW:

The City Attorney's Office reviewed this staff report.

OPTIONS:

The City Council has the following options:

1. Approve staff's recommendation; or

2. Provide alternative direction.

Prepared by: Will Trujillo, IT Manager
Additional Approval: Roxanne E. Lerma, Assistant City Manager Additional Approval: Karen Ogawa, Finance Director
Fiscal Impact
FISCAL IMPACT:

Funding for the Firewall and Endpint Protection Upgrade is included in the Fiscal Year 2026-27 budget.

Attachments
Attachment No. 1 - Quote
Attachment No. 2 - NASPO Contract # AR3229
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Achieve Fiscal Sustainability and Financial Stability
Maintain Good Intergovernmental Relations
Enhance City Image and Effectiveness
Hardware Software Services IT Solutions Brands Research Hub

QUOTE CONFIRMATION
Thank you for choosing CDW. We have received your quote.

WILLIAM TRUJILLO,
Thank you for considering CDW•G for your technology needs. The details of your quote are below. If you are an eProcurement or single sign on customer, please log into your system to access the CDW site. You can search for your quote to retrieve and transfer back into your system for processing.

For all other customers, click below to convert your quote to an order.

This quote is subject to CDW's Third Party Cloud Services Order Form Terms and Conditions set forth at
https://www.cdwg.com/content/cdwg/en/terms-conditions/third-party-cloud-services-order-form-term s-and-conditions-.html
Pricing and Availability Notice
Due to ongoing supply chain challenges, some hardware manufacturers cannot guarantee product availability or pricing until the product is shipped. While we make every effort to honor quoted pricing, if a hardware manufacturer increases its price to CDW after a quote is issued or order is accepted, we may need to update your quoted price to reflect that change irrespective of any timeframes or validity periods set forth in the quote, including up to the date of shipment. In the event of a price adjustment, we will notify you prior to shipment. Any price adjustment would only occur if the hardware manufacturer increases its pricing to CDW.

Convert Quote to Order
QUOTE # QUOTE DATE QUOTE REFERENCE CUSTOMER # GRAND TOTAL PZBR572 7/29/2026 PALO XDR 500 6461819 $659,752.60

QUOTE DETAILS
ITEM QTY CDW# UNIT PRICE EXT. PRICE
Palo Alto Networks PA-1420 Firewall Appliance 4 7259804 $5,001.14 $20,004.56 Mfg. Part#: PAN-PA-1420
California Palo Alto NVP Data Com -
AR3229 (AR3229 7-14-7047-06)
Contract: Standard Pricing
Palo Alto Networks Premium Support - extended service
agreement - 5 years -
4 7284820 $7,952.54 $31,810.16
Mfg. Part#: PAN-SVC-PREM-1420-5YR
PA-1420, Premium support
5 years (60 months) term
California Palo Alto NVP Data Com -
AR3229 (AR3229 7-14-7047-06)
Electronic distribution - NO MEDIA
Contract: Standard Pricing
Palo Alto Networks Precision AI Network Security Bundle - subscription lice
4 9171831 $40,617.33 $162,469.32
Mfg. Part#: PAN-PA-1420BNDPRECISIONAI5YR
PA-1420, Precision AI Network
Security Subscription Bundle
(Advanced Threat Prevention
Advanced URL Filtering
Advanced Wildfire
Advanced DNS Security
ATTACHMENT NO. 1