Agenda packet — Hermosa Beach City Council, April 8, 2025 (part 2 of 4)

City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) L. Other Postemployment Benefits (“OPEB”) (Continued)
The following timeframes are used for OPEB reporting:

OPEB
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in 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 amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

M. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:

Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation.

Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

N. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as inventory or prepaid items, or because resources legally or contractually must remain intact.

Restricted – Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation.

Committed – Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose. 50

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) N. Fund Balances (Continued)
Unassigned – Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

O. Spending Policy
Government – Wide Financial Statements and Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply restricted component of net position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements
When expenditures are incurred for purposes for which restricted, committed, assigned and unassigned fund balances are all available, the City’s policy is to use these balances in the following order unless an ordinance specifies the fund balance to be used: restricted, committed, assigned and unassigned.

Long-term financial planning
The City Council’s adopted financial policies relating to long-term financial planning for specific purposes are as follows:

Insurance Fund - Goal of $3,000,000 in net position for claims reserves and catastrophic losses.

Equipment Replacement Fund - Goal of net position equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment.

Contingency - Goal equal to 20% of the General Fund appropriations for economic uncertainties, unforeseen emergencies.

Compensated Absences - Goal equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time.

The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, and Capital Improvement Capital Projects Fund and to add to Contingency funds. The City Council makes changes as necessary to the year-end transfer, depending on the equity in the funds or based on other needs.

P. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) Q. Leases Receivable
Lessor: The City is a lessor for noncancellable leases of a portion of real property, as well as, building and roof space. 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 the 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 elements and judgement 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 it 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 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.

R. Leases Payable and Subscription Agreements Payable
Lessee: The City is a lessee for noncancellable leases of software subscriptions. The City recognizes a lease or subscription agreement liability and an intangible right-to-use lease or subscription agreement asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $50,000 or more.

At the commencement of a lease or subscription agreement, the City initially measures the lease liability at the present value of payments expected to be made during the lease or subscription agreement term. Subsequently, the liability is reduced by the principal portion of payments made. The lease or subscription agreement asset is initially measured as the initial amount of the liability, adjusted for payments made at or before the commencement date, plus certain initial direct costs. Subsequently, the asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) payments. The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. The term includes the noncancellable period of the lease. Lease payments included in the measurement of the liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

Lease or subscription agreement assets are reported with other capital assets and lease or subscription agreement liabilities are reported with long-term debt on the Statement of Net Position. 52 Page 163 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) S. Accounting Changes
For the year ended June 30, 2024, the financial statements include the adoption of GASB Statement No. 100, Accounting Changes and Error Corrections. The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes (such as changes in accounting principles and estimates) and error corrections to provide more understandable, reliable, consistent, and comparable information for making decisions or assessing accountability.

Note 2 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds.

The City had the following cash and investments at June 30, 2024:

Government-Wide
Statement of
Net Position Statement of
Governmental Fiduciary
Activities Net Position Total
Cash and investments $ 67,810,162 $ 289,051 $ 68,099,213 The City’s cash and investments at June 30, 2024 in more detail:

Cash and cash equivalents:

Demand deposits $ 11,210,246
Petty cash 2,000
Total cash and cash equivalents 11,212,246
Investments:

Local Agency Investment Fund 10,875,646
Los Angeles County Pooled Investments Funds 36,273,081
US Government Treasuries 474,050
US Government Bonds 2,978,325
Negotiable Certificates of Deposit 6,285,865
Total investments 56,886,967
Total cash and investments $ 68,099,213
A. Deposits
The carrying amounts of the City’s demand deposits were $11,210,246 at June 30, 2024. Bank balances at that date were $11,134,456, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the City’s name. 53

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 – Cash and Investments (Continued)
The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures, if applicable. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances, however, interest is not allocated to funds created to advance costs for utility undergrounding districts, reimbursable grant funds or internal service funds.

B. Investments
Under the provisions of the City’s investment policy, the City’s investments are limited to those authorized by the California Government Code, except as follows:
 There is no maximum amount or maximum maturity period of the City’s idle funds that may be invested with the Local Agency Investment Fund (“LAIF”) or the Los Angeles County Pooled Investment Fund (“LACPIF”)  Negotiable Certificates of Deposit shall not exceed 30 percent of the City’s surplus money and mature in 5 years or less.  Medium-term corporate notes shall have a Moody or Standard & Poor’s rating of at least AA and mature in 5 years or less
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2023 included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities, which included the following:

Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables.

As of June 30, 2024, the City had $10,875,646 invested in LAIF, which had invested 19.12% of the pool investment funds in Structured Notes and Asset-Backed Securities. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

C. Investment in Los Angeles County Investment Pool
The City is a voluntary participant in the Los Angeles County Investment Pool pursuant to Government Code Section 53684. The cash flow needs of participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of those participants. At the time deposits are made, the Los Angeles County Investment Pool’s Treasurer may require the depositing entity to provide annual cash flow projections or an anticipated withdrawal schedule for deposits in excess of $1 million. Projections are to be performed no less than semi-annually. In accordance with Government Code Section 27136, all requests for withdrawal of funds for the purpose of investing or depositing the funds elsewhere shall be evaluated to ensure the proposed withdrawal will not adversely affect the principal deposits of the other participants. As of June 30, 2024, the City had $36,273,081 invested in the Los Angeles County Investment Pool. 54

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2024, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within fair value hierarchy in which the fair value measurements fall at June 30, 2024:

Investment Type Value Level 1 Level 2 Uncategorized
Local Agency Investment Fund $ 10,875,646 $ - $ - $ 10,875,646 Los Angeles County Pooled
Investments Fund 36,273,081 - - 36,273,081
US Government Treasuries 474,050 474,050 - -
US Government Bonds 2,978,325 2,978,325 - -
Negotiable Certificates of Deposit 6,285,865 - - 6,285,865 Total $ 56,886,967 $ 3,452,375 $ - $ 53,434,592
E. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years.

At June 30, 2024, the City had the following investment maturities:

Investment Maturities (in Years)
Investment Type Fair value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Local Agency Investment Fund $ 10,875,646 $ 10,875,646 $ - $ - $ - $ - Los Angeles County Pooled
Investments Fund 36,273,081 36,273,081 - - - -
US Government Treasuries 474,050 - 474,050 - - -
US Government Bonds 2,978,325 - 1,399,065 692,755 886,505 - Negotiable Certificates of Deposit 6,285,865 1,715,846 - 1,150,054 3,419,965 - Total $ 56,886,967 $ 48,864,573 $ 1,873,115 $ 1,842,809 $ 4,306,470 $ - Credit Risk – State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to limit its investments in these investment types to the top rating issued by Standard & Poor’s and Moody’s Investor Service. At June 30, 2024, the City’s credit risks, expressed on a percentage basis, were as follows:

Credit Quality Distribution for Securities
with Credit Exposure as a Percentage of Total Investments Moody's S&P's % of Investments
Credit Credit with Interest
Investment Type Rating Rating Rate Risk
Local Agency Investment Fund (LAIF) Not Rated Not Rated 19.12% Los Angeles County Pooled Investments Fund Not Rated Not Rated 63.76% US Government Treasuries Aaa AA+ 0.83%
US Government Bonds Aaa AA+ 5.24%
Negotiable Certificates of Deposits Not Rated Not Rated 11.05% Total

100.00%
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Custodial Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City 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. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

Concentration of credit risk – The City’s investment policy does not allow for investments in any one institution that is in excess of 5% of the City’s total portfolio, except for LAIF and LACIPIF, where there is no limit. The City is in compliance with the investment policy related to the concentration of credit risk for the year ended June 30, 2024.

Note 3 - Receivables
A. Government-Wide Financial Statements
At June 30, 2024, the government-wide financial statements show the following receivables, net of allowances for uncollectible amounts, if any:

Government-Wide
Statement of
Net Position Statement of
Governmental Fiduciary
Activities Net Position Total
Accounts receivable $ 4,382,111 $ - $ 4,382,111
Property taxes receivable, net 1,006,782 - 1,006,782
Reimbursable grants receivable 646,431 - 646,431
Leases receivable 8,896,734 - 8,896,734
Interest receivable on investments 289,819 922 290,741
Other receivables - 2,225 2,225
Total $ 15,221,877 $ 3,147 $ 15,225,024
B. Fund Financial Statements Receivables
Receivables consisted of amounts accrued in the ordinary course of operations. The total amount of accounts receivables for each major and nonmajor funds in the aggregate as of June 30, 2024, were as follows:

Governmental funds:

General $ 3,072,398
Grants 764,730
Capital Improvements 250,000
Nonmajor Funds 227,982
Total governmental funds 4,315,110
Total accounts receivable $ 4,315,110
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 3 – Receivables (Continued)
B. Fund Financial Statements (Continued)
Taxes Receivable
At June 30, 2024, the City had property taxes receivable, net of allowance for delinquent property taxes receivables, in the following major fund and nonmajor funds in the aggregate:

Allowance for Property
Property delinquent tax taxes, net
taxes receivables of allowance
Governmental Funds:

General Fund $ 1,456,369 $ (489,340) $ 967,029
Nonmajor funds 68,575 (28,822) 39,753
Total $ 1,524,944 $ (518,162) $ 1,006,782
Reimbursable Grants Receivable
Grants receivable consists of a variety of reimbursable grants from other agencies. The total amount of reimbursable grants receivable as of June 30, 2024 was as follows:

Governmental funds:

Grants $ 420,433
Nonmajor Funds 255,998
Total governmental funds 646,431
Total grant receivables $ 646,431
Note 4 – Lease Receivable and Revenues
In March 2001, a 50-year lease for the retail space located in front of the North Pier Parking Structure was initiated.

The City receives a monthly lease payment in the amount of $2,985. The lease includes a negotiated increase to the monthly lease payment to be calculated every 60 months based on an amendment equal to the greater of the consumer price index or 12.5% of the gross effective sublease rent for the previous 60 month period. In February 2016, the lease was increased to $3,235. During the year ended June 30, 2024, the City recognized $5,088 in lease revenue and $25,656 in interest revenue during the current fiscal year related to the lease. As of June 30, 2024, the City’s receivable for lease payments was $633,456. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $633,456.

In February 2004, the City entered into a 5-year lease agreement with Sprint, a cellular telephone company, for placement of an antenna on the North Pier Parking Structure. The lease includes a provision for 5 lease extensions with a 5-year term for each. In February 2009, the lease was extended through January 31, 2015. In February 2016, the lease was extended through January 31, 2020. In February 2020, the lease was extended through January 31, 2025. During the year ended June 30, 2024, the City recognized $15,367 in lease revenue and $16,108 in interest revenue during the current fiscal year related to the lease. As of June 30, 2024, the City’s receivable for lease payments was $389,004. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $389,004.
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 4 – Lease Receivable and Revenues (Continued)
In June 2005, the City purchased property adjacent to City Hall that is used as a self - storage facility with Thielscher. The existing lease for the storage facility was transferred to the City as a condition of the sale. The original lease term was through January 31, 2009, and was extended beginning February 1, 2009 to April 30, 2015 through various amendments. In April 2015, the lease was amended to extend the term to April 30, 2020. In May 2020, the lease was extended through June 2025 and that lease can be terminated without cause at any time after July 2021 with one year of written notice to the City. The City receives a monthly lease payment in the amount of $20,600. During the year ended June 30, 2024, the City recognized $239,408 in lease revenue and $15,207 in interest revenue during the current fiscal year related to the lease. As of June 30, 2024, the City’s receivable for lease payments was $264,350. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $264,350.

In February 2014, the City entered into a 20-year lease agreement with Verizon wireless, a cellular telephone company. The annual lease rate is expected to increase at a rate of 3% with base monthly payment amount of $5,000.

During the year ended June 30, 2024, the City recognized $10,619 in lease revenue and $27,334 in interest revenue during the current fiscal year related to the lease. As of June 30, 2024, the City’s receivable for lease payments was $675,115. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $675,115.

In 2016, three 25-year lease agreements with MC Global were initiated. The City receives quarterly lease payments that range from $17,250 to $22,500. During the year ended June 30, 2024, the City recognized $101,749 in lease revenue and $154,747 in interest revenue during the current fiscal year related to the leases. As of June 30, 2024, the City’s receivable for lease payments was $3,819,332. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $3,819,332.

In 2002, a 25-year lease agreements with Tycom was initiated. The City receives quarterly lease payments of $75,000. During the year ended June 30, 2024, the City recognized $87,880 in lease revenue and $127,972 in interest revenue during the current fiscal year related to the lease. As of June 30, 2024, the City’s receivable for lease payments was $3,114,477. Also, the City has a deferred inflow of resources associated with the lease that will be recognized as revenue over the lease term. As of June 30, 2024, the balance of the deferred inflow of resources was $3,114,477.

Note 5 – Interfund Transactions
Due From/To Other Funds – At June 30, 2024, the City had the following due from/to other funds:

Due From Other Funds
Due To Other Funds
General
Fund Total

Grants $ 518,618 $ 518,618
Nonmajor Governmental funds 952,013 952,013

Total $ 1,470,631 $ 1,470,631
The above amount resulted from the time lag between the dates that reimbursable expenditures occur and payments are received from other agencies.
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 5 – Interfund Transactions (Continued)
Transfers
During the year ended June 30, 2024, the City had the following transfers:

Transfers in
Capital
Improvements
Capital Nonmajor Internal
General Projects Governmental Service
Transfers out Fund Funds Funds Funds Total
General Fund $ - $ 4,663,091 $ 1,139,314 $ 3,748,603 $9,551,008 Nonmajor Governmental
Funds

1,697,340

1,697,340
Total $1,697,340 $ 4,663,091 $ 1,139,314 $ 3,748,603 $11,248,348 In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services.

General Fund transferred $664,616 to the 2020 Lease Revenue Bond Fund for debt service payment.

General Fund transferred $1,830,129 to the Insurance Internal Service Fund to fund liability claims. 59 Page 170 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 6 – Capital Assets
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2024:

Balance Balance
July 1, 2023 Additions Deletions June 30, 2024
Capital assets not being depreciated:

Land $ 22,740,168 $ - $ - $ 22,740,168
Construction in progress 11,769,434 6,452,739 (9,314,915) 8,907,258 Total capital assets not being depreciated 34,509,602 6,452,739 (9,314,915) 31,647,426 Capital assets being depreciated:

Buildings and structures 13,619,166 2,327,995 - 15,947,161 Improvements other than buildings 15,362,907 - - 15,362,907 Machinery and equipment 7,763,962 180,187 (32,226) 7,911,923 Vehicles 4,373,324 276,242 (177,882) 4,471,684
Right-to-use - Subscriptions 153,338 - -- 153,338
Infrastructure 56,863,653 6,986,918 - 63,850,571
Total capital assets being depreciated 98,136,350 9,771,342 (210,108) 107,697,584 Less accumulated depreciation for:

Buildings and structures (6,752,243) (259,600) - (7,011,843) Improvements other than buildings (13,899,418) (220,898) - (14,120,316) Machinery and equipment (6,018,330) (442,685) 31,826 (6,429,189) Vehicles (3,262,195) (284,213) 177,882 (3,368,526)
Right-to-use - Subscriptions (64,518) (53,460) - (117,978) Infrastructure (34,401,271) (1,575,691) - (35,976,962)
Total accumulated depreciation (64,397,975) (2,836,547) 209,708 (67,024,814) Total capital assets being depreciated, net 33,738,375 6,934,795 (4,00) 40,672,770 Total governmental activities $ 68,247,977 $ 13,387,534 $ (9,315,315) $ 72,320,196 Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2024 as follows:

Legislative and legal $ 87,321
General government 359,410
Public safety 1,535,674
Community development 132,325
Culture and recreation 127,055
Public works 594,762
Total depreciation expense $ 2,836,547
Note 7 – Long-Term Liabilities
Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2024 is as follows:

Classification
Balance Balance Due within Due in more
July 1, 2023 Additions Deletions June 30, 2023 One Year than One Year 2020 Lease revenue bond $ 7,340,000 $ - $ (435,000) $ 6,905,000 $ 450,000 $ 6,455,000 Bonds Premium 1,256,848 - (157,105) 1,099,743 157,105 942,638 Subscription agreements 91,969 - (70,574) 21,395 21,395 - Compensated absences 2,465,073 1,507,780 (1,583,820) 2,389,033 607,089 1,781,944 $ 11,153,890 $ 1,507,780 $ (2,246,499) $ 10,415,171 $ 1,235,589 $ 9,179,582

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 7 – Long-Term Liabilities (Continued)
2020 Lease Revenue Bonds
In October 2020, the PFA issued $8,150,000 Hermosa Beach Public Financing Authority 2020 Lease Revenue Bonds to (i) refund and defease the 2015 Lease revenue bonds and (ii) pay the costs of issuing the 2020 Bonds.

Interest rate is 1.92% and is payable semiannually on May 1 and November 1 of each year, commencing May 1, 2021. Principal payments range from $395,000 to $715,000 commencing November 2021 through November 2035. The 2020 bonds are secured solely by the pledge revenues and certain funds held under the indenture. The 2020 bonds are not secured by a pledge of the taxing power of the City. Upon default, the payment in default will continue as an obligation of the City until the amount in default has been fully paid, and the City agrees to pay the same with interest thereon, from the date of default to the date of payment at the highest rate of interest on any Outstanding 2020 Bond. The outstanding balance at June 30, 2024 was $6,905,000.

The annual debt service requirements by year are as follows:

Year ending
June 30, Principal Interest Total
2025 $ 450,000 $ 276,200 $ 726,200
2026 470,000 258,200 728,200
2027 490,000 239,400 729,400
2028 510,000 219,800 729,800
2029 535,000 199,400 734,400
2030-2034 3,050,000 656,600 3,706,600
2035-2036 1,400,000 138,600 1,538,600
$ 6,905,000 $ 1,988,200 $ 8,893,200

Subscription Agreement Payable
In July 2019, the City entered into a 60 month subscription for the use of license and permit software. An initial subscription liability was recorded in the amount of $84,018. As of June 30, 2024, the value of the subscription liability is $0. The City is required to make annual fixed payments ranging from $26,548 to $40,588. The subscription has an interest rate of 4.0%. The value of the right to use asset as of June 30, 2024 was $84,018 with accumulated amortization of $84,018.

In May 2022, the City entered into a 66 month subscription for the use of budget software. An initial subscription liability was recorded in the amount of $64,378. As of June 30, 2024, the value of the subscription liability is $21,395. The City is required to make annual fixed payments ranging from $10,261 to $26,435. The subscription has an interest rate of 4.0%. The value of the right to use asset as of June 30, 2024 was $69,320 with accumulated amortization of $33,960.

The following future principal and interest payments on the leases payable and subscription agreements payable for June 30 are as follows:

Year ending
June 30, Principal Interest Total
2025 $ 10,261 $ 424 $ 10,685
2026 11,134 439 11,573
$ 21,395 $ 863 $ 22,258

61 Page 172 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 8 – Risk Management
The City maintains an internal service fund to account for the City’s general liability and workers’ compensation claims, automobile, property, and unemployment insurance.

The City is self-insured for each general liability claim up to $250,000. The City is insured above the self-insured retention for general liability insurance coverage, up to a maximum of $25,000,000 per occurrence, as a member of the California Joint Powers Insurance Authority (“CJPIA”).

The City purchases workers’ compensation coverage through a self-insured program available through CJPIA. The City maintains a $250,000 self-insured retention limit and participates in a self-insured risk sharing pool through the CJPIA of coverage up to statutory limits.

CJPIA is a joint exercise of powers authority organized and operating pursuant to the California Government Code.

CJPIA was formed in 1978 pursuant to joint exercise of power agreements for insurance and risk management purposes, which, as amended, enable CJPIA to provide programs of risk sharing, insurance and risk management services in connection with liability, property, and workers’ compensation claims.

CJPIA’s annual budget is based on estimated actuarially determined member losses within the risk sharing layer, administrative expenses and excess insurance.

The City’s premiums to CJPIA in the amount of $1,566,800 for the fiscal year 2023-2024 are in accordance with formulas established by CJPIA. The City is liable for possible additional assessments and withdrawal costs under terms of the membership agreement; however, there has never been an additional assessment since the pool was formed.

The City has entered into contracts with third party administrators who supervise and administer the City’s general liability and workers’ compensation insurance programs. Claim loss estimates are determined by the third party administrator based on the nature of an individual claim. The loss estimates include amounts for future compensation, medical, legal and administrative fees. The City also includes estimated claims incurred but not reported (“IBNR”) provided by an actuary. Reimbursement requests are submitted to the City on a monthly basis as claims are paid.

The City maintains a blend of self-insurance and reinsurance with the Independent Cities Risk Management Authority (ICRMA) and its third party administrators for liability and Workers' Compensation claims submitted to the risk pool prior to July 1, 2023. The City is insured self-insures up to $250,000 under the ICRMA liability excess insurance program with a maximum annual coverage of $40 million. The City also self-insures up to $500,000 under the ICRMA excess Workers’ Compensation, with excess coverage through Safety National.

The workers’ compensation and general liability claims payable of $7,389,552 reported at June 30, 2024 includes the liability for claims in which it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

Detailed financial information may be obtained from the CJPIA Program Administrator located at 8081 Moody Street, La Palma, CA 90623.
62

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 9 – Defined Benefit Pension Plans
The following is a summary of net pension liabilities, related deferred outflows and inflows of resources as of June 30, 2024 and pension expenses for the year then ended June 30, 2024:

Miscellaneous Safety Total
Deferred outflows of resources:

Pension contribution after measurement date $ 2,114,228 $ 4,093,315 $ 6,207,543 Difference between expected and actual experience 992,176 3,223,870 4,216,046 Change in assumptions 1,172,588 2,562,699 3,735,287
Change in employer’s proportion 79,387 978,515 1,057,902 Difference between City contributions and
proportionate share of contributions - 107,547 107,547
Differences between projected and actual
investment earnings 3,144,581 6,009,195 9,153,776
Total deferred outflows of resources

$ 7,502,960 $ 16,975,141 $ 24,478,101
Aggregate Net pension liabilities:

Aggregate Net pension liabilities $ 19,421,905 $ 43,910,902 $ 63,332,807 Total net pension liabilities (1)

$ 19,421,905 $ 43,910,902 $ 63,332,807
Deferred inflows of Resources:

Difference between projected and actual
experience $ 153,910 $ 275,997 $ 429,907
Change in employer’s proportions 202,357 260,265 462,622 Difference between City contributions and
proportionate share of contributions 425,879 1,560,092 1,985,971 Total deferred inflows of Resources

$ 782,146 $ 2,096,354 $ 2,878,500
Pension expenses (credits):

$ 2,920,251 $ 6,110,168 $ 9,030,419
(1) Pension plan have typically been liquidated by the General Fund.

General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multipleemployer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and 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 and City ordinance. Copies of the CalPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.

The City contracted with Los Angeles County for Fire Services (Fire District) on 12/30/2017. The City will continue to be responsible for paying the retirement costs for fire employees related to the value of past service benefits, referred to as the unfunded actuarial liability.
63

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2024, the following employees were covered by the benefit terms:

Plans
Fire Tier 1 Fire Tier 2 Fire PEPRA Police Tier 1 Police Tier 2 Police PEPRA Active employees - - - 20 2 11
Transferred and terminated employees 11 1 3 4 2 6
Separated 5 1 1 4 2 2
Retired Employees and Beneficiaries 60 - - 92 2 2
Total 76 2 4 120 8 21

Plans
Misc. Tier 1 Misc. Tier 2 Misc. PEPRA
Active employees 30 16 59
Transferred and terminated employees 38 11 28
Separated 46 6 33
Retired Employees and Beneficiaries 148 2 1

Total 262 35 121

Benefit Provided
CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:
 Fire Tier 1: 3% (at age 55) of the average final 12 months compensation (effective prior to 7/1/11)  Fire Tier 2: 2% (at age 50) of the average final 12 months compensation (effective 7/1/11)  Fire PEPRA: 2.7% (at age 57) of the average final 36 months compensation (effective 1/1/13)  Police Tier 1: 3% (at age 50) of the average final 12 months compensation (effective prior to 7/1/11)  Police Tier 2: 2% (at age 50) of the average final 12 months compensation (effective 7/1/11)  Police Tier PEPRA: 2.7% (at age 57) of the average final 36 months compensation (effective 1/1/13)  Miscellaneous Tier 1: 2% (at age 55) of the average final 12 months compensation (effective prior to 7/1/11)  Miscellaneous Tier 2: 2% (at age 60) of the average final 12 months compensation (effective 7/1/11)  PEPRA Miscellaneous: 2% (at age 62) of the average final 36 months compensation (effective 1/1/13) 64

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

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 Public agency cost-sharing plans covered by either the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the fiscal year ended June 30, 2023, the contributions recognized as part of pension expense(credit) for the plan totaled $9,030,419. For the measurement period ended June 30, 2023 (the measurement date), the average contribution rate were as follows:

Active Employee Employer
Plans Contribution Rate Contribution Rate
Fire Tier 1 0.000% $1,042,569
Fire Tier 2 0.000% $ 0
Fire PEPRA 0.000% $ 0
Police Tier 1 9.000% 29.09%
Police Tier 2 9.000% 22.98%
Police PEPRA 14.50% 14.50%
Misc. Tier 1 7.000% 12.47%
Misc. Tier 2 7.000% 10.66%
Misc. PEPRA 7.750% 7.68%
65

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Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment rate of return 7.15% net of pension plan investment expenses, includes inflation Mortality Rate Table Derived using CalPERS’ Membership Data for all Funds.

Post Retirement Benefit Increase Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.50% thereafter All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 6.90 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

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, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. 66

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New Strategic Real Return
Asset Class Allocation-% Years 1-101,2 -%
Global Equity – cap-weighted 30.00 4.45
Global Equity – non-cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage (5.00) (0.59)
1 An expected inflation of 2.3% used for this period
2 Figures are based on the 2021-22 Asset Liability Management study.

Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 6.90%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentagepoint higher (7.90%) than the current rate:

Plan's Net Pension Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous $ 28,716,898 $ 19,421,905 $ 11,771,328
Safety

$ 63,142,969 $ 43,910,902 $ 28,187,320
67

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Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Increase (Decrease)
Plan Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/22 (Valuation date) $ 65,606,659 $ 47,511,312 $ 18,095,347 Balance at: 6/30/23 (Measurement date) $ 68,726,969 $ 49,304,791 $ 19,421,905 Net Changes during 2022-2023 $ 3,120,037 $ 1,793,479 $ 1,326,558 Safety
Balance at: 6/30/22 (Valuation date) $ 135,368,804 $ 94,105,566 $ 41,263,238 Balance at: 6/30/23 (Measurement date) $ 140,193,592 $ 96,282,690 $ 43,910,902 Net Changes during 2022-2023 $ 4,824,788 $ 2,177,124 $ 2,647,664 68

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2021). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2021). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2021 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2020-2021).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the fair value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of contributions during measurement period.

The City’s proportionate share of the net pension liability was as follows:

Miscellaneous Safety
June 30, 2024 0.38841% 0.58744%
June 30, 2023 0.38672% 0.60049%
Change - Increase (Decrease) 0.00169% (0.01305)%
69

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Miscellaneous $ 2,920,251
Safety 6,110,168
$ 9,030,419
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2022-2023 measurement period is 3.8 years, which was obtained by dividing the total service years of 630,177 (the sum of remaining service lifetimes of the active employees) by 166,163 (the total number of participants: active, inactive, and retired).

At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred outflows
of Resources
Deferred inflows
of Resources
Pension contribution after measurement date $ 2,114,228 $ - Difference between expected and actual experience 992,176 (153,910) Changes of assumptions 1,172,588 -
Difference between projected and actual earning on
pension plan investments 3,144,581 -
Adjustment due to differences in proportions 79,387 (202,357) Difference between City contributions and
proportionate share of contributions - (425,879)
Total $ 7,502,960 $ (782,146)

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Safety
Deferred outflows
Pension contribution after measurement date $ 4,093,315 $ - Difference between expected and actual experience 3,223,870 (275,997) Changes of assumptions 2,562,699 -
Difference between projected and actual earning on
pension plan investments 6,009,195 -
Adjustment due to differences in proportions 978,515 (260,265) Difference between City contributions and
proportionate share of contributions 107,547 (1,560,092) Total $ 16,975,141 $ (2,096,354)

Deferred outflows of resources related to pensions resulting from the City’s contributions made after to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal period.

Deferred inflows of resources represent an acquisition of net position that applies to future periods. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement Period Deferred Outflows/ (Inflows) of Resources Ended June 30, Miscellaneous Safety
2025 $ 1,210,473 $ 3,397,818
2026 913,935 2,428,088
2027 2,391,948 4,791,837
2028 90,231 167,728
2029 - -
Thereafter - -
$ 4,606,587 $ 10,785,471

71 Page 182 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 – Other Postemployment Benefit Plan
General Information about the Plan
On June 12, 2007, the City Council adopted a resolution authorizing participation in a post retirement health care plan trust to be administered by Public Agency Retirement Services (“PARS”) and Union Bank of California. In July 2007, the City signed an agreement with Public Agency Retirement Services to create and administer an irrevocable trust fund for the payment of other postemployment benefits for city employees. Funds in the amount of $1,401,000 that were previously set aside were forwarded to Union Bank pursuant to the agreement to establish the trust during the year ended June 30, 2008. Contributions are made on a monthly basis.

Plan Description
The City participates in a post retirement health care plan trust (“Plan”) administered by PARS and Union Bank of California. The Plan provides medical insurance benefits to eligible retirees, which is a single-employer defined benefit plan. PARS issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by contacting the City at 1315 Valley Drive, Hermosa Beach, CA 90254.

The Plan is comprised of employees and retirees from several bargaining units, including General and Supervisory; Professional and Administrative Employees Association; Hermosa Beach Management Association; Police Management Association; Police Officers Association and Firefighters Association.

The range of monthly benefits to be paid by the City ranges from $40 to $1,059 per month based on years of service from 10 years to 20 years provided to the City.

The monthly benefits paid by the City are subject to change with increases provided based on age at retirement and years of service.

Post-Retirement Health Care Coverage for Fire Employees The City contracted with Los Angeles County for Fire Services (“Fire District”) on 12/30/2017. Fire District employees are provided post-retirement health coverage. The current vesting period is 10 years of Fire District service. Service with the City does not count towards coverage, only time actually worked in Fire District service counts towards the vesting period. Hermosa Beach Fire Association (HBFA) members who transfer to the Fire District and who take a service retirement before reaching 10 years of Fire District service are ineligible for the Fire District's retiree health benefit.

For those HBFA members who have 19 plus years of service with the City at the time of transfer to Fire District employment and who take a service retirement from the Fire District prior to vesting in the Fire District's retiree health plan, the City agrees to create a new Tier to the City's retiree health program as follow: the retired HBFA member will be eligible to receive from the City the $ 350 per month benefit set forth in Article 42(D) of the MOU.

This benefit is limited to the first four HBFA members who qualify for the benefit. 72

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 – Other Postemployment Benefit Plan (Continued) General Information about the Plan (Continued) Eligibility All of the Plan’s employees became participants in accordance with negotiated Memorandum of Understanding (“MOU”) as negotiated by each group or bargaining unit. In order to receive benefits, eligible employees must meet the minimum requirements defined in their MOU. Participants of the Plan as of June 30, 2024 were as follows:

Participants Total
Active employees 123
Retirees 78
Retirees not receiving benefits -
Total 201

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2023.

Actuarial Assumptions
The total OPEB liability, measured as of June 30, 2023, was determined using the following actuarial assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 5.50% Pre-funded in PARS Moderate Strategy Inflation 2.50% per annum
Salary Increases 3.00% Aggregate
Merit: 1997-2015 CalPERS Experience Study
Investment Rate of Return 6.00%
Healthcare Trend Rate Non-Medicare: 7.5% in 2019, to 4.0% in 2076 and thereafter Medicare: 6.5% in 2019 to 4.0% in 2076 and thereafter
Mortality, Retirement, Disability, Termination CalPERS 1997-2015 Experience Study Service Requirement 100% at 20 Years of Service
Participation Rate Currently covered: 100%
The actuarial assumptions used in the July 1, 2023 valuation were based on the results of an actuarial experience study for the period July 1, 2022 through June 30, 2023. 73

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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 – Other Postemployment Benefit Plan (Continued) Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
The long-term expected rate of return on OPEB 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 OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target Allocation Expected Real
Asset Class PARS-Moderate Rate of Return
Global Equity 50.00% 4.560%
Fixed Income 45.00% 0.780%
Cash 5.00% (0.500)%

100.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 5.50 percent. The actuarial assumptions used to determine the discount rate was based on the current funding practice and assumed the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees.

Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine 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, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2023:

Plan's OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(4.50%) Rate (5.50%) (6.50%)
$ (4,546,931) $ (5,847,884) $ (6,954,965)
Sensitivity of the Total OPEB Liability to Changes in Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the total OPEB liability would be if it were calculated using a health care cost trend rates that are one percentage point lower or one percentage point higher than the current rates, for the measurement period ended June 30, 2023:

Plan's OPEB Liability/(Asset)
Healthcare
-1.00% Trend Rate +1.00%
$ (6,744,311) $ (5,847,884) $ (4,784,940)
74 Page 185 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 10 – Other Postemployment Benefit Plan (Continued) Change in Net OPEB Liability
Total Net
OPEB Plan OPEB
Liability Fiduciary Liability
(Asset) Net Position (Asset)
Balance at June 30, 2023 (Valuation Date)

$ 15,413,431 $ 15,789,988 $ (376,557)
Changes Recognized for the Measurement Period:

Service Cost 337,924 - 337,924
Interest on the total OPEB liability 848,939 - 848,939
Changes of benefit terms (309,542) - (309,542)
Difference between expected and actual experience (4,287,883) - (4,287,883) Changes of assumptions 185,963 - 185,963
Contributions from the employer - 1,081,220 (1,081,220) Contributions from employees - - -
Net investment income, net of administrative expense - 1,202,440 (1,202,440) Benefit payments, including refunds of employee contributions (632,228) (632,228) - Administrative Expense - (36,932) 36,932
Net Changes during July 1, 2022 to June 30, 2023 (3,856,827) 1,614,500 (5,471,327) Balance at June 30, 2024 (Measurement Date) $ 11,556,604 $ 17,404,488 $ (5,847,884) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2024, OPEB credit in the amount of $48,452 is included in the accompanying statement of activities.

At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of resources
Deferred Inflows
of resources
Employer contribution after measurement date $ 1,141,418 $ - Differences between expected and actual experience 205,203 (4,475,604) Changes in assumptions 1,605,935 -
Difference between projected and actual earning
on plan investments 905,787 -
$ 3,858,343 $ (4,475,604)
The $1,081,220 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB asset in the year June 30, 2024. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ending
June 30 Amount
2024 $ (62,660)
2025 (124,503)
2026 214,038
2027 (531,359)
2028 (523,717)
Thereafter (730,478)
Total $ (1,758,679)
75

Page 186 of 702 ends

City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 11 – Classification of Fund Balances
At June 30, 2024, fund balances are classified in the governmental funds as follows:

General
Fund

Grants
Special
Revenue
Fund
Tyco
Special
Revenue
Fund
RTI
Undersea
Cable
Special
Revenue
Fund

Capital
Improvements
Capital
Projects

Nonmajor
Governmental
Funds

Total
Nonspendable
Prepaid items $ 954,276 $ - $ - $ - $ - $ 19,176 $ 973,452 Total nonspendable 954,276 - - - - 19,176 973,452
Restricted
Verizon PEG Grant 200,517 - - - - - 200,517
General Plan
Maintenance Fees 249,114

249,114
Chamber Marquee
Donation 50,000

50,000
CASP Fees 68,279 - - - - - 68,279
Gas Tax - - - - - 931,384 931,384
Source Reduction/
Recycling -

365,695

365,695
Greenwich Underground - - - - - 58,573 58,573
Parks/Rec Facility Projects - - - - - 368,199 368,199
Assessment Districts - - - - - 10,069 10,069
Prop A, C and Measure
R Transit Projects -

2,533,261

2,533,261
Air Quality
Improvement Projects -

104,763

104,763
Supplemental Law
Enforcement Services
Funds -

502,713

502,713
Asset Forfeiture – Drug
Enforcement and
Education -

583,228

583,228
Fire Protection - - - - - 7,499 7,499
Community Development
Block Grant -

3,192

3,192
Measure M and W - - - - - 689,772 689,772
RTI Undersea Cable
Tidelands -

422,245

422,245
Sewers - - - - - 4,399,029 4,399,029
Lease Revenue Bond - - - - - 40,857 40,857
Storm Drain - - - - - 2,705,498 2,705,498
Total restricted 567,910 - - - - 13,725,977 14,293,887
Committed
In Lieu Fee- Parking
Facilities 404,600

404,600
Tyco & RIT Tidelands - - 2,121,402 1,157,867 - - 3,279,269 Retirement Trust 829,060 - - - - - 829,060
Retirement Rate
Stabilization 1,021,575

1,021,575
Total committed 2,255,235 - 2,121,402 1,157,867 - - 5,534,504 Assigned
Capital Projects - - - - 15,584,921 - 15,584,921
Capital Facility Reserve - - - - 841,393 - 841,393
Grant Claims Reserve 1,023,530 - - - - - 1,023,530
23-24 Year End
Balance 729,769

729,769
Reappropriations 431,095 - - - - - 431,095
Contingencies 10,116,922 - - - - - 10,116,922
Compensated absences 294,170 - - - - - 294,170
Prop A Exchange 676,547 - - - - - 676,547
Total assigned 13,272,035 - - - 16,426,314 - 29,698,349 Unassigned - (300,667) - - - (751,590) (1,052,257)
$17,049,456 $ 300,667) $2,121,402 $1,157,867 $16,426,314 $12,993,563 $49,447,935 76 Page 187 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 12 – Non-City Obligations
2004 Beach Drive Utility Underground Assessment District Special Assessment Bonds In July 2004, limited obligation improvement bonds in the amount of $404,341 were issued for the Beach Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill.

The annual debt service requirements by year are as follows:

Year ending
June 30, Principal Interest Total
2025 $ 30,514 732 $ 31,246
$ 30,514 $ 7325 $ 31,246
2005 Bayview Drive Utility Underground Assessment District Improvement Bonds In February 2005, limited obligation improvement bonds in the amount of $951,667 were issued for the Bayview Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill.

The annual debt service requirements by year are as follows:

Year ending
June 30, Principal Interest Total
2025 $ 55,867 $ 3,680 $ 59,547
2026 58,666 1,247 59,913
Total $ 114,533 $ 4,927 $ 119,460
Note 13 – Commitments and Contingencies
A. Commitments
In January 2000, the North Pier Parking Structure was completed. The parking structure contains 400 parking spaces and was funded in part by a downtown developer in exchange for the use of 100 spaces in the structure.

The remainder of the funding was provided by the City’s former Downtown Enhancement Enterprise Fund and Prop A Open Space funding contributed by the Los Angeles County Department of Beaches and Harbors (“County”). In consideration of the County contribution, 50% of the annual net income derived from the parking structure must be shared with the County each year by September 1. The payment made to the County for fiscal year June 30, 2024 was $376,867.

B. Contingencies
The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.

C. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies.

While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City. 77 Page 188 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 14 – Prior Period Adjustments
As of July 1, 2023, beginning net position were restated in the following funds due to the following:

Governmental
Activities
Governmental
Funds
Net position at July 1, 2023,
as originally reported
$80,942,077 $47,429,546
State Gas Tax – understatement of revenue 37,614 37,614 Prop C – understatement of revenue 51,620 51,620
Measure M – overstatement of revenue (51,620) (51,620)
Measure W – overstatement of revenue (211,975) (211,975) Grants – overstatement of revenue (68,825) (68,825)
Net position at July 1, 2023, as restated $80,698,891 $47,186,360 Note 15 – Subsequent Events
Management has evaluated subsequent events through March 28, 2025 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.

Page 189 of 702 ends

REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
79

Page 190 of 702 ends

Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2023 $ 19,150,935 19,150,935 $ 19,150,935 $ - $ Revenues (inflows):

Property taxes 23,991,897 24,487,850 24,517,511 29,661
Other taxes 14,309,918 13,932,826 13,564,218 (368,608)
Licenses and permits 1,238,386 765,742 870,207 104,465
Fines and forfeitures 1,747,450 1,621,950 1,449,099 (172,851) Use of money and property 806,252 840,388 900,482 60,094 Intergovernmental 106,199 220,738 203,502 (17,236)
Charges for services 9,274,127 9,293,427 10,104,188 810,761 Miscellaneous 68,621 157,086 331,553 174,467
Interest earned on investments 575,331 640,215 862,260 222,045 Transfers in 1,727,688 1,712,513 1,697,340 (15,173)
Proceeds from subscriptions - - 28,825 28,825
Amount available for appropriations 53,845,869 53,672,735 54,529,185 856,450 Charges to appropriations (outflows):

Legislative and legal 1,761,159 1,778,613 1,536,996 241,617 General government 6,876,657 7,101,339 6,101,066 1,000,273 Public safety 27,671,775 27,672,651 26,728,045 944,606
Community development 2,390,502 2,397,174 2,279,252 117,922 Culture and recreation 2,150,635 2,120,785 2,172,307 (51,522) Public works 9,250,958 9,667,778 7,966,434 1,701,344
Capital outlay 342,125 297,937 266,675 31,262
Principal - - 27,144 (27,144)
Interest and fiscal charges - - 1,737 (1,737)
Transfers out 4,436,047 9,565,708 9,551,008 14,700
Total charges to appropriations 54,879,858 60,601,985 56,630,664 3,971,321 Fund balance, June 30, 2024 18,116,946 $ 12,221,685 $ 17,049,456 $ 4,827,771 $

CITY OF HERMOSA BEACH
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2024
Budgeted Amounts
80 Page 191 of 702
Actual Variance with
Original Final Amounts Final Budget
Fund balance (deficit), July 1, 2023,
as restated $ (1,254,234) (1,254,234) $ (1,254,234) $ - $ Revenues (inflows):

Intergovernmental 636,865 4,448,278 2,089,243 (2,359,035) Miscellaneous - 65,595 15,061 (50,534)
Amount available for appropriations 636,865 4,513,873 2,104,304 (2,409,569) Charges to appropriations (outflows):

General government - 1,118,422 171,103 947,319
Public safety 12,996 80,996 21,390 59,606
Community development 25,455 56,740 - 56,740
Public works 16,924 90,924 80,458 10,466
Capital outlay 3,347,449 1,827,449 877,786 949,663
Total charges to appropriations 3,402,824 3,174,531 1,150,737 2,023,794 Fund balance (deficit), June 30, 2024 (4,020,193) $ 85,108 $ (300,667) $ (385,775) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Budgetary Comparison Schedule - Grants Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts
81 Page 192 of 702
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2023 $ 1,967,398 1,967,398 $ 1,967,398 $ - $ Revenues (inflows):

Use of money and property 345,909 345,909 215,852 (130,057) Miscellaneous - - 127,972 127,972
Interest earned on investments 81,977 100,210 122,302 22,092 Amount available for appropriations 427,886 446,119 466,126 20,007 Charges to appropriations (outflows):

Public works 250,000 250,000 51,444 198,556
Capital outlay 2,471,473 2,145,285 260,678 1,884,607
Total charges to appropriations 2,721,473 2,395,285 312,122 2,083,163 Fund balance, June 30, 2024 (326,189) $ 18,232 $ 2,121,402 $ 2,103,170 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Budgetary Comparison Schedule - Tyco Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts

Page 193 of 702 ends

Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2023 $ 885,423 885,423 $ 885,423 $ - $ Revenues (inflows):

Use of money and property 233,489 233,489 101,750 (131,739) Miscellaneous - - 153,969 153,969
Interest earned on investments 32,705 44,029 59,368 15,339 Amount available for appropriations 266,194 277,518 315,087 37,569 Charges to appropriations (outflows):

Public works 371,224 14,848 4,132 10,716
Capital outlay 732,260 1,148,093 38,511 1,109,582
Total charges to appropriations 1,103,484 1,162,941 42,643 1,120,298 Fund balance, June 30, 2024 48,133 $ - $ 1,157,867 $ 1,157,867 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Budgetary Comparison Schedule - RTI Undersea Cable Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts

Page 194 of 702 ends

City of Hermosa Beach
Required Supplementary Information (Unaudited) (Continued) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2024
Budgetary Control and Accounting Policy
Budgets are annually adopted for all governmental fund types (with the exception of the Tyco Tideland, Myrtle District Administrative Expense, and Greenwich Underground Special Revenue Funds) and all proprietary fund types on a basis consistent with generally accepted accounting principles. The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the “annual appropriated budget.”
The appropriated budget is prepared by fund, department and division. The City Council may amend the budget by motion during the fiscal year. Expenditures may not legally exceed appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within the same fund; however, any transfers between funds or revisions that alter total appropriations of any fund require City Council approval. The legal level of control is therefore at the fund level.

Supplemental appropriations, which increase appropriations, were made during the fiscal year, therefore, “final” budgeted revenue and appropriation amounts shown in the financial statements represent the original budget, modified for adjustments during the year. Appropriations lapse at the end of the fiscal year.

Encumbrances - Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Unexpended appropriations lapse at year-end. 84 Page 195 of 702
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20
City's Proportion of the Net
Pension Liability/(Asset) 0.38841% 0.38672% 0.47112% 0.37245% 0.37079% City's Proportionate share
of the Net Pension Liability/(Asset) $ 18,095,347 19,421,905 $ 8,945,705 $ 15,710,118 $ 14,848,242 $ City's Covered payroll 9,983,830 $ 8,730,571 $ 7,613,425 $ 7,191,189 $ 7,192,641 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 194.53% 207.26% 117.50% 218.46% 206.44% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 71.74% 78.19% 85.66% 74.14% 75.95% June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018-19 2017-18 2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.37090% 0.14664% 0.14882% 0.15099% 0.16331% City's Proportionate share
of the Net Pension Liability/(Asset) $ 14,452,712 13,978,150 $ 12,877,883 $ 10,364,015 $ 10,161,668 $ City's Covered payroll $ 6,785,443 7,402,032 $ 6,540,869 $ 5,700,485 $ 5,355,599 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 188.84% 213.00% 196.88% 181.81% 189.74% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 74.50% 72.80% 73.59% 78.00% 78.34%

CITY OF HERMOSA BEACH
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information
85 Page 196 of 702
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20
City's Proportion of the Net
Pension Liability/(Asset) 0.58744% 0.60049% 0.65417% 0.53686% 0.54687% City's Proportionate share
of the Net Pension Liability/(Asset) 43,910,902 $ 41,263,238 $ 22,957,889 $ 35,767,664 $ 34,138,671 $ City's Covered payroll $ 4,520,539 5,103,285 $ 4,516,727 $ 4,130,518 $ 4,108,280 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 860.44% 912.79% 508.29% 865.94% 830.97% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 68.68% 75.53% 82.03% 71.20% 71.77% June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018-19 2017-18 2016-17 2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.57283% 0.35213% 0.37217% 0.40019% 0.42012% City's Proportionate share
of the Net Pension Liability/(Asset) 33,611,333 $ 34,921,802 $ 32,204,127 $ 27,469,000 $ 26,141,972 $ City's Covered payroll $ 5,597,657 5,320,583 $ 5,342,937 $ 5,492,822 $ 5,065,109 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 631.72% 623.86% 602.74% 500.09% 516.12% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 71.23% 69.01% 68.78% 72.40% 74.24% California Public Employees' Retirement System ("CalPERS") Safety Plan

CITY OF HERMOSA BEACH
Required Supplementary Information
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years
86 Page 197 of 702
2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially determined
contribution 918,769 $ 742,817 $ 690,001 $ 693,322 $ 618,021 $ Contributions in relation to
the actuarially determined
contributions (2,161,264) $ (2,025,370) $ (1,769,850) $ (1,632,690) $ (1,907,072) $ Contribution deficiency
(excess) (1,242,495) $ (1,282,553) $ (1,079,849) $ (939,368) $ (1,289,051) $ Covered payroll 1 $ 8,730,570 9,983,830 $ 7,661,955 $ 7,613,425 $ 7,191,189 $ Contributions as a
percentage of covered
employee payroll 21.65% 23.20% 23.10% 21.44% 26.52%
2018-19 2017-18 2016-17 2015-16 2014-15
Actuarially determined
contribution 575,931 $ 527,115 $ 518,722 $ 469,656 $ 883,493 $ Contributions in relation to
the actuarially determined
contributions (1,682,561) $ (1,516,745) $ (1,379,151) $ (1,245,120) $ (883,493) $ Contribution deficiency
(excess) (1,106,630) $ (989,630) $ (860,429) $ (775,464) $ - $ Covered payroll 1 $ 7,402,032 7,192,641 $ 6,785,443 $ 6,540,869 $ 5,700,485 $ Contributions as a
percentage of covered
employee payroll 23.39% 20.49% 20.33% 19.04% 15.50%
1 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
None.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan

CITY OF HERMOSA BEACH
Required Supplementary Information
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years
87

Page 198 of 702 ends

2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially determined
contribution 1,082,912 $ 896,751 $ 1,119,497 $ 996,107 $ 753,728 $ Contributions in relation to
the actuarially determined
contributions (4,195,950) $ (3,982,811) $ (3,813,932) $ (3,342,664) $ (2,799,261) $ Contribution deficiency
(excess) (3,113,038) $ (3,086,060) $ (2,694,435) $ (2,346,557) $ (2,045,533) $ Covered payroll 1 $ 4,520,539 5,103,285 $ 5,171,993 $ 4,516,727 $ 4,130,518 $ Contributions as a
percentage of covered
employee payroll 82.22% 88.10% 73.74% 74.01% 67.77%
2018-19 2017-18 2016-17 2015-16 2014-15
Actuarially determined
contribution 804,633 $ 1,016,858 $ 1,029,129 $ 1,033,371 $ 2,842,420 $ Contributions in relation to
the actuarially determined
contributions (3,878,196) $ (4,226,782) $ (3,921,179) $ (3,698,115) $ (2,842,420) $ Contribution deficiency
(excess) (3,073,563) $ (3,209,924) $ (2,892,050) $ (2,664,744) $ - $ Covered payroll 1 $ 5,320,583 4,108,280 $ 5,597,651 $ 5,342,937 $ 5,492,822 $ Contributions as a
percentage of covered
employee payroll 94.40% 79.44% 70.05% 69.22% 51.75%
1 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
None.

California Public Employees' Retirement System ("CalPERS") Safety Plan

CITY OF HERMOSA BEACH
Required Supplementary Information
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2024
Last Ten Fiscal Years
88

Page 199 of 702 ends

For the Measurement Period: 2023-24 2022-23 2021-22 2020-21 2019-20 Total OPEB Liability
Service cost 337,924 $ 328,880 $ 396,550 $ 385,000 $ 385,000 $ Interest on the total OPEB Liability 848,939 819,527 818,124 779,630 779,630 Actual and expected experience difference (4,287,883) - (1,303,579) - - Changes in assumptions 185,963 - 2,010,094 - -
Changes in benefit terms (309,542) - - - -
Benefit payments (632,228) (613,220) (563,618) (505,591) (505,591) Net change in total OPEB liability (3,856,827) 535,187 1,357,571 659,039 659,039 Total OPEB liability - beginning 15,413,431 14,878,244 13,520,673 12,861,634 12,861,634 Total OPEB liability - ending (a) 11,556,604 $ 15,413,431 $ 14,878,244 $ 13,520,673 $ 13,520,673 $ Plan Fiduciary Net Position
Contribution - employer 1,081,220 $ 1,047,488 $ 982,442 $ 870,427 $ 870,427 $ Net investment income 1,202,440 (2,363,706) 3,126,022 504,213 504,213 Benefit payments (632,228) (613,220) (563,618) (505,591) (505,591) Administrative expense (36,932) (38,864) (36,347) (32,328) (32,328) Net change in plan fiduciary net position 1,614,500 (1,968,302) 3,508,499 836,721 836,721 Plan fiduciary net position - beginning 15,789,988 17,758,290 14,249,791 13,413,070 13,413,070 Plan fiduciary net position - ending (b) 17,404,488 15,789,988 17,758,290 14,249,791 14,249,791 Net OPEB liability (asset) - ending (a)-(b) (5,847,884) $ (376,557) $ (2,880,046) $ (729,118) $ (729,118) $ Fiduciary net position as a % of
total OPEB liability 150.60% 102.44% 119.36% 105.39% 105.39% Covered payroll 15,230,981 14,578,182 13,037,862 12,297,066 12,297,066 Net OPEB liability as a
percentage of payroll -38.39% -2.58% -22.09% -5.93% -5.93% * 2017 is the first year of implementation, therefore only eight years are available for the required 10-year schedule.

CITY OF HERMOSA BEACH
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Required Supplementary Information
Last Ten Fiscal Years

Page 200 of 702 ends

For the Measurement Period: 2018-19 2017-18 2016-17
Total OPEB Liability
Service cost 327,066 $ 317,540 $ 326,000 $
Interest on the total OPEB Liability 661,475 631,597 624,000 Actual and expected experience difference 632,713 - -
Changes in assumptions 771,624 - -
Changes in benefit terms - - (381,000)
Benefit payments (457,550) (463,831) (399,000)
Net change in total OPEB liability 1,935,328 485,306 170,000 Total OPEB liability - beginning 10,926,306 10,441,000 10,271,000 Total OPEB liability - ending (a) 12,861,634 $ 10,926,306 $ 10,441,000 $ Plan Fiduciary Net Position
Contribution - employer 1,486,916 $ 1,569,307 $ 1,050,000 $ Net investment income 838,766 645,729 906,000
Benefit payments (457,550) (463,831) (399,000)
Administrative expense (29,410) (26,857) (23,000)
Net change in plan fiduciary net position 1,838,722 1,724,348 1,534,000 Plan fiduciary net position - beginning 11,574,348 9,850,000 8,316,000 Plan fiduciary net position - ending (b) 13,413,070 11,574,348 9,850,000 $ Net OPEB liability (asset) - ending (a)-(b) (551,436) $ (648,042) $ 591,000 $ Fiduciary net position as a % of
total OPEB liability 104.29% 105.93% 94.34%
Covered payroll 10,461,266 11,551,135 11,551,135
Net OPEB liability as a
percentage of payroll -5.27% -5.61% 5.12%

CITY OF HERMOSA BEACH
Required Supplementary Information (Continued)
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2024
Last Ten Fiscal Years

Page 201 of 702 ends

For the Measurement
Period: 2023-24 2022-23 2021-22 2020-21 2019-20
Actuarially determined
contributions 243,000 $ 224,000 $ 367,000 $ 373,000 $ 314,000 $ Contributions in relation to
the actuarially determined
contribution (1,141,418) (1,081,220) (1,047,488) (982,447) (870,427) Contribution deficiency
(excess) (898,418) $ (857,220) $ (680,488) $ (609,447) $ (556,427) $ Covered payroll 17,217,134 $ 15,230,981 $ 14,578,182 $ 13,037,862 $ 12,297,066 $ Contributions as a percentage
of covered payroll 6.63% 7.10% 7.19% 7.54% 7.08%
For the Measurement
Period: 2018-19 2017-18 2016-17
Actuarially determined
contributions 324,000 $ 818,000 $ 818,000 $
Contributions in relation to
the actuarially determined
contribution (1,486,916) (1,569,000) (1,050,000)
Contribution deficiency
(excess) (1,162,916) $ (751,000) $ (232,000) $
Covered payroll 10,461,266 $ 11,551,135 $ 10,955,041 $
Contributions as a percentage
of covered payroll 14.21% 13.58% 9.58%
* 2017 is the first year of implementation, therefore only eight years are available for the required 10-year schedule.

CITY OF HERMOSA BEACH
Required Supplementary Information
Schedule of City's Contributions - OPEB
For the Year Ended June 30, 2024
Last Ten Fiscal Years

Page 202 of 702 ends

SUPPLEMENTARY INFORMATION
92

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This page intentionally left blank.
93

Page 204 of 702 ends

NON MAJOR

GOVERNMENTAL FUNDS
Special Revenue Funds:

Lighting and Landscaping District Fund - This fund is used to account for the Lighting Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and Highway Code 22500-22679.

State Gas Tax Fund - This fund is used to account for the City's share of state gasoline tax, which is restricted for use on public streets. Restricted Transportation Development Act funds from Los Angeles County Transportation Commission for the Strand Walkway Project and Bicycle Path Project are also accounted for in this fund.

AB 939 Fund - This fund is used to account for the fees collected in connection with solid waste collection. The fees are used to implement a Source Reduction and Recycling Element and a Household Waste Element.

Prop A Open Space Fund - This fund is used to account for funds generated by passage of the L.A. County Safe Neighborhood Parks Bond Act by County voters for the purpose of improving parks and recreational facilities.

Parks/Recreation Facilities Tax Fund - This fund is used to account for revenue from subdivision fees and park or recreation facility tax fees on new dwellings. Generally, the funds are to be used for acquisition, improvements and expansion of park or recreational facilities.

Bayview Drive Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Bayview Utility Underground Special Assessment District.

Loma District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District.

Beach Drive Assessment District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District.

Proposition "C" Fund - This is a fund which was added during 1992 to account for funds allocated from the voter-approved 1/2 cent sales tax. Funds must be used for transit purposes.

Measure "R" Fund - This is a fund which was added July 1, 2009 to account for a 1/2 cent sales tax approved by Los Angeles County voters in November 2008 to meet the transportation needs of Los Angeles County. The program is to be used for transportation projects that have been approved by the Los Angeles County Metropolitan Transit Authority.

Air Quality Management District Fund - This fund is used to account for funds distributed by the South Coast Air Quality Management district. The revenues are restricted to programs which promote reduction in air pollution from motor vehicles.

Supplemental Law Enforcement Services Fund - This fund is used to account for funds received from the Citizen Option for Public Safety ("COPS") program, established by the State Legislature in fiscal year 1996-1997. Funds must be used for front line municipal police services and must supplement and not supplant existing funding.

Page 205 of 702 ends

NON MAJOR
GOVERNMENTAL FUNDS (Continued)
Special Revenue Funds (Continued):

Asset Seizure and Forfeiture Fund - This fund is used to account for property seized as a result of illegal activity and forfeited to the Police Department. Funds must be used for law enforcement purposes to supplement, not replace or decrease, existing appropriations.

Fire Protection Fund - This fund is used to account for fire flow fees which are used to upgrade and enhance the fire flow capabilities of the fire protection system in the City and for upgrades to fire facilities.

Community Development Block Grant (CDBG) Fund - This fund is used to track the costs related to community development block grant.

Measure "M" Fund - This fund is used to account for voter-approved 1/2 cent sales tax for a Los Angeles County Traffic Improvement Plan to improve freeway traffic flow/safety; repair potholes/sidewalks; repave local streets; earthquake-retrofit bridges; synchronize signals; keep senior/disabled/student fares affordable; expand rail/subway/bus systems; improve job/school/airport connections; and create jobs.

FEMA Fund – This fund is used to account for emergency response related expenditures reimbursed by the Federal Emergency Management Agency.

RTI Undersea Cable Tidelands Fund - This fund is used to account for funds set aside according to the MC Global (now RTII) easement agreement for easement within tidelands and submerged lands.

Proposition "A" Transit Fund - Transit revenue consists primarily of Proposition A fund (the 1/2 cent sales tax for Los Angeles County transportation purposes). The City currently operates a Dial-a-Ride program for seniors, a taxi voucher program, a commuter bus, special event and after school program shuttles and subsidizes bus passes for senior citizens and students.

American Rescue Plan Act Fund – This fund is used to account for ARPA eligible expenditures.

CARES Act Fund - This fund is used to account for COVID-19 related expenditures reimbursable under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Measure “W” Fund - This fund is used to account for projects dedicated to increase local water supply, improve water quality, and protect public health.

Sewer Fund - This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous service charges. Funds are spent on the Sewer/Strom Drain Department and capital sewer projects.

Storm Drain Fund - This fund is used to account for maintenance of the City's storm drains. This includes administration of the national Pollution Discharge Elimination System Program.

Debt Service Fund:
2015 Lease Revenue Bonds - This fund is used to account for 2015 Lease Revenue Bond.

Capital Project Funds:

Capital Improvements - This fund is set aside for capital improvement projects.

Greenwich Underground - This fund is set aside for capital improvement projects. 95

Page 206 of 702 ends

Lighting and Prop A
Landscaping State Open
District Gas Tax AB 939 Space
Cash and investments 27,119 $ 801,019 $ 360,303 $ - $
Accounts receivable 7,399 129,753 3,678 26,697
Property taxes receivable, net 20,146 - - -
Reimbursable grants receivable - - - -
Interest receivable 489 5,008 2,212 -
Other assets - 938 3,522 -
Total assets $ 936,718 55,153 $ 369,715 $ 26,697 $
Liabilities:

Accounts payable and accrued liabilities 51,225 $ 3,653 $ - $ - $ Accrued wages and benefits payable 8,207 743 498 -
Unearned revenues - - - -
Due to other funds - - - 102,263
Compensated absences, due within one year - - - -
Total liabilities 4,396 59,432 498 102,263
Deferred inflows of resources:

Unavailable revenue 20,146 - - -
Total deferred inflows of resources - 20,146 - -
Fund Balances:

Nonspendable - 938 3,522 -
Restricted - 931,384 365,695 -
Unassigned (24,425) - - (75,566)
Total fund balances (deficits) 932,322 (24,425) 369,217 (75,566) Total liabilities, deferred inflows
and fund balances $ 936,718 55,153 $ 369,715 $ 26,697 $ Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
ASSETS

AND FUND BALANCES

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
96 Page 207 of 702
Parks/ Bayview Loma Beach Drive
Recreation Drive District Assessment
Facilities Administrative Administrative District
Tax Expense Expense Admin Expense
Cash and investments 367,191 $ 6,540 $ - $ 4,285 $
Accounts receivable - - - -
Property taxes receivable, net - - - -
Reimbursable grants receivable - - - -
Interest receivable 2,247 40 - 27
Other assets - - - -
Total assets $ 6,580 369,438 $ - $ 4,312 $
Liabilities:

Accounts payable and accrued liabilities - $ 447 $ - $ 376 $ Accrued wages and benefits payable 1,239 - - -
Unearned revenues - - - -
Due to other funds - - 93 -
Compensated absences, due within one year - - - -
Total liabilities 447 1,239 93 376
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable - - - -
Restricted 368,199 6,133 - 3,936
Unassigned - - (93) -
Total fund balances (deficits) 6,133 368,199 (93) 3,936 Total liabilities, deferred inflows
and fund balances $ 6,580 369,438 $ - $ 4,312 $

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds

AND FUND BALANCES
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
97 Page 208 of 702
Air Supplemental
Quality Law
Proposition Measure Management Enforcement
"C" "R" District Services
Cash and investments 1,664,557 $ 761,576 $ 104,460 $ 504,840 $ Accounts receivable - - - -
Property taxes receivable, net - - - -
Reimbursable grants receivable - - - -
Interest receivable 10,146 4,734 656 3,116
Other assets - - - -
Total assets $ 766,310 1,674,703 $ 105,116 $ 507,956 $
Liabilities:

Accounts payable and accrued liabilities 407,091 $ 2,718 $ - $ 5,243 $ Accrued wages and benefits payable 876 402 353 -
Unearned revenues - - - -
Due to other funds - - - -
Compensated absences, due within one year - 188 - -
Total liabilities 3,308 407,967 353 5,243
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources - - - -
Fund Balances:

Nonspendable - - - -
Restricted 1,266,736 763,002 104,763 502,713
Unassigned - - - -
Total fund balances (deficits) 763,002 1,266,736 104,763 502,713 Total liabilities, deferred inflows
and fund balances $ 766,310 1,674,703 $ 105,116 $ 507,956 $ Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
98 Page 209 of 702
Asset
Seizure
and Fire Measure
Forfeiture Protection CDBG "M" FEMA
Cash and investments 580,403 $ 11,026 $ 1 $ 188,294 $ - $ Accounts receivable - - 3,191 - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - 225,998
Interest receivable 3,625 62 - 1,738 -
Other assets - 3,589 - - -
Total assets $ 14,677 584,028 $ 3,192 $ 190,032 $ 225,998 $ Liabilities:

Accounts payable and accrued liabilities 800 $ 3,589 $ - $ 2,375 $ - $ Accrued wages and benefits payable - - - 248 -
Unearned revenues - - - - -
Due to other funds - - - - 849,657
Compensated absences, due within one year - - - - -
Total liabilities 3,589 800 - 2,623 849,657
Deferred inflows of resources:

Unavailable revenue - - - - 27,847
Total deferred inflows of resources - - - - 27,847
Fund Balances:

Nonspendable - 3,589 - - -
Restricted 583,228 7,499 3,192 187,409 -
Unassigned - - - - (651,506)
Total fund balances (deficits) 11,088 583,228 3,192 187,409 (651,506) Total liabilities, deferred inflows
and fund balances $ 14,677 584,028 $ 3,192 $ 190,032 $ 225,998 $ Special Revenue Funds

AND FUND BALANCES

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
ASSETS

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
99 Page 210 of 702
RTI American
Undersea Rescue
Cable Proposition Plan CARES Measure
Tidelands "A" Transit Act Act "W"
Cash and investments 442,453 $ 579,567 $ - $ - $ 715,864 $ Accounts receivable - - - - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable 2,781 3,464 - - 4,329
Other assets - 10,399 - - -
Total assets $ 593,430 445,234 $ - $ - $ 720,193 $
Liabilities:

Accounts payable and accrued liabilities 9,535 $ 79,281 $ - $ - $ 5,000 $ Accrued wages and benefits payable 13,454 227 - - 855
Unearned revenues - - - - 211,975
Due to other funds - - - - -
Compensated absences, due within one year - - - - -
Total liabilities 79,508 22,989 - - 217,830
Deferred inflows of resources:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:

Nonspendable - 10,399 - - -
Restricted 422,245 503,523 - - 502,363
Unassigned - - - - -
Total fund balances (deficits) 513,922 422,245 - - 502,363 Total liabilities, deferred inflows
and fund balances $ 593,430 445,234 $ - $ - $ 720,193 $

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024

AND FUND BALANCES
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
Special Revenue Funds
100 Page 211 of 702
Capital Debt
Project Service
Fund Fund
Total
2015 Lease Nonmajor
Storm Greenwich Revenue Governmental
Sewer Drain Underground Bonds Funds
Cash and investments 4,412,087 $ 2,751,727 $ 58,573 $ 40,857 $ 14,382,742 $ Accounts receivable 57,264 - - - 227,982
Property taxes receivable, net 19,607 - - - 39,753
Reimbursable grants receivable - - - - 225,998
Interest receivable 26,856 - - - 71,530
Other assets 728 - - - 19,176
Total assets $ 2,751,727 4,516,542 $ 58,573 $ 40,857 $ 14,967,181 $ Liabilities:

Accounts payable and accrued liabilities 78,818 $ 26,636 $ - $ - $ 676,787 $ Accrued wages and benefits payable 37,967 19,593 - - 84,662 Unearned revenues - - - - 211,975
Due to other funds - - - - 952,013
Compensated absences, due within one year - - - - 188
Total liabilities 46,229 116,785 - - 1,925,625
Deferred inflows of resources:

Unavailable revenue - - - - 47,993
Total deferred inflows of resources - - - - 47,993
Fund Balances:

Nonspendable 728 - - - 19,176
Restricted 4,399,029 2,705,498 58,573 40,857 13,725,977 Unassigned - - - - (751,590)
Total fund balances (deficits) 2,705,498 4,399,757 58,573 40,857 12,993,563 Total liabilities, deferred inflows
and fund balances $ 2,751,727 4,516,542 $ 58,573 $ 40,857 $ 14,967,181 $

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2024
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
101 Page 212 of 702
Lighting and Prop A
Landscaping State Open
District Gas Tax AB 939 Space
REVENUES:

Property taxes 455,818 $ - $ - $ - $
Other taxes - - - -
Fines and forfeitures - - - -
Use of money and property - - - -
Intergovernmental - 1,046,427 - -
Charges for services - - 62,794 -
Miscellaneous - - - -
Interest earned on investments 3,236 47,785 18,469 -
Total revenues 459,054 1,094,212 81,263 -
EXPENDITURES:

Current:

General government - - 3,317 -
Public safety - - - -
Community development - - - -
Culture and recreaction - - - -
Public works 980,040 12,395 - -
Capital outlay - 614,804 - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 980,040 627,199 3,317 -

REVENUES OVER
(UNDER) EXPENDITURES 467,013 (520,986) 77,946 -

OTHER FINANCING
SOURCES (USES):

Transfers in 474,898 - - -
Transfers out (11,054) (357,865) - (44,963)
Total other financing
sources (uses) 463,844 (357,865) - (44,963)
CHANGE IN FUND BALANCES 109,148 (57,142) 77,946 (44,963) Fund balances (deficits), beginning of year,
as restated 32,717 823,174 291,271 (30,603)
Fund balances (deficits), end of year (24,425) $ 932,322 $ 369,217 $ (75,566) $ Special Revenue Funds

CITY OF HERMOSA BEACH
Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 102 Page 213 of 702
Parks/ Bayview Loma Beach Drive
Recreation Drive District Assessment
Facilities Administrative Administrative District
Tax Expense Expense Admin Expense
REVENUES:

Property taxes - $ - $ - $ - $
Other taxes - - - -
Fines and forfeitures - - - -
Use of money and property - - - -
Intergovernmental - - - -
Charges for services 38,534 - - -
Miscellaneous - 5,000 - 4,000
Interest earned on investments 19,278 357 - 243
Total revenues 57,812 5,357 - 4,243
EXPENDITURES:

Current:

General government - 1,741 - 1,509
Public safety - - - -
Community development - - - -
Culture and recreaction - - - -
Public works 20,659 - - -
Capital outlay 12,834 - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 33,493 1,741 - 1,509

REVENUES OVER
(UNDER) EXPENDITURES 24,319 3,616 - 2,734

OTHER FINANCING
SOURCES (USES):

Transfers in - - - -
Transfers out - (3,000) - (2,500)
Total other financing
sources (uses) (3,000) - - (2,500)
CHANGE IN FUND BALANCES 616 24,319 - 234
Fund balances (deficits), beginning of year,
as restated 343,880 5,517 (93) 3,702
Fund balances (deficits), end of year 368,199 $ 6,133 $ (93) $ 3,936 $ Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
103 Page 214 of 702
Air Supplemental
Quality Law
Proposition Measure Management Enforcement
"C" "R" District Services
REVENUES:

Property taxes - $ - $ - $ - $
Other taxes 421,661 316,147 - 155,774
Fines and forfeitures - - - -
Use of money and property - - - -
Intergovernmental - - 19,183 -
Charges for services - - - -
Miscellaneous - - - -
Interest earned on investments 89,368 52,494 5,681 27,348 Total revenues 368,641 511,029 24,864 183,122
EXPENDITURES:

Current:

General government - - 5,130 -
Public safety - - - 57,465
Community development - - - -
Culture and recreaction - - - -
Public works 3,415 15,258 - -
Capital outlay 847,166 577,658 41,500 62,467
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 592,916 850,581 46,630 119,932

REVENUES OVER
(UNDER) EXPENDITURES (224,275) (339,552) (21,766) 63,190

OTHER FINANCING
SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources (uses) - - - -
CHANGE IN FUND BALANCES (224,275) (339,552) (21,766) 63,190 Fund balances (deficits), beginning of year,
as restated 1,606,288 987,277 126,529 439,523
Fund balances (deficits), end of year 1,266,736 $ 763,002 $ 104,763 $ 502,713 $ Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
104 Page 215 of 702
Asset
Seizure
and Fire Measure
Forfeiture Protection CDBG "M" FEMA
REVENUES:

Property taxes - $ - $ - $ - $ - $
Other taxes - - - 356,997 -
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental - - - - 270,918
Charges for services - 6,211 - - -
Miscellaneous - - - - -
Interest earned on investments 32,501 414 - 43,034 -
Total revenues 6,625 32,501 - 400,031 270,918
EXPENDITURES:

Current:

General government - - - - -
Public safety 7,941 - - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - 4,132 -
Capital outlay 1,192 - - 1,208,030 -
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - 9,133 - 1,212,162 -

REVENUES OVER
(UNDER) EXPENDITURES 6,625 23,368 - (812,131) 270,918

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses) - - - - -
CHANGE IN FUND BALANCES 6,625 23,368 - (812,131) 270,918 Fund balances (deficits), beginning of year,
as restated 559,860 4,463 3,192 999,540 (922,424)
Fund balances (deficits), end of year 583,228 $ 11,088 $ 3,192 $ 187,409 $ (651,506) $

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
105 Page 216 of 702
RTI American
Undersea Rescue
Cable Proposition Plan CARES Measure
Tidelands "A" Transit Act Act "W"
REVENUES:

Property taxes - $ - $ - $ - $ - $
Other taxes - 508,346 - - 158,425
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental - - - - -
Charges for services - 1,017 - - -
Miscellaneous - - - - -
Interest earned on investments 25,353 23,296 - - 34,662 Total revenues 532,659 25,353 - - 193,087
EXPENDITURES:

Current:

General government - 19 - 15,174 -
Public safety - 23,594 - - -
Community development - 49,876 - - -
Culture and recreaction - 61,069 - - -
Public works 35,848 - - - 14,411
Capital outlay 122,903 2,300 - - 5,000
Debt service:

Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures 136,858 158,751 - 15,174 19,411

REVENUES OVER
(UNDER) EXPENDITURES 395,801 (133,398) - (15,174) 173,676

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out - - (997,769) (280,189) -
Total other financing
sources (uses) - - (997,769) (280,189) -
CHANGE IN FUND BALANCES 395,801 (133,398) (997,769) (295,363) 173,676 Fund balances (deficits), beginning of year,
as restated 555,643 118,121 997,769 295,363 328,687
Fund balances (deficits), end of year 422,245 $ 513,922 $ - $ - $ 502,363 $ Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
106 Page 217 of 702
Capital Debt
Project Service
Fund Fund
Total
2015 Lease Nonmajor
Storm Greenwich Revenue Governmental
Sewer Drain Underground Bonds Funds
REVENUES:

Property taxes - $ - $ - $ - $ 455,818 $
Other taxes - 700,000 - - 2,617,350
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental 18,953 - - - 1,355,481
Charges for services 1,288,835 - - - 1,397,391
Miscellaneous - - - - 9,000
Interest earned on investments 220,456 107,512 - - 751,487 Total revenues 1,528,244 807,512 - - 6,586,527
EXPENDITURES:

Current:

General government - - - - 26,890
Public safety - - - - 89,000
Community development - - - - 49,876
Culture and recreaction - - - - 61,069
Public works 675,836 604,311 - - 2,366,305
Capital outlay 78,001 192,198 62,325 - 3,828,378
Debt service:

Principal - - - 435,000 435,000
Interest and fiscal charges - - - 283,782 283,782
Total expenditures 753,837 796,509 62,325 718,782 7,140,300

REVENUES OVER
(UNDER) EXPENDITURES 774,407 11,003 (62,325) (718,782) (553,773)

OTHER FINANCING
SOURCES (USES):

Transfers in - - - 664,416 1,139,314
Transfers out - - - - (1,697,340)
Total other financing
sources (uses) - - - 664,416 (558,026)
CHANGE IN FUND BALANCES 11,003 774,407 (62,325) (54,366) (1,111,799) Fund balances (deficits), beginning of year,
as restated 3,625,350 2,694,495 120,898 95,223 14,105,362 Fund balances (deficits), end of year 4,399,757 $ 2,705,498 $ 58,573 $ 40,857 $ 12,993,563 $ Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2024
107 Page 218 of 702
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 32,717 32,717 $ - $
Revenues (inflows):

Property taxes 461,555 455,818 (5,737)
Interest earned on investments 3,134 3,236 102
Transfers in 474,898 474,898 -
Amount available for appropriations 939,587 933,952 (5,635) Charges to appropriations (outflows):

Public works 961,250 980,040 (18,790)
Transfers out 11,054 11,054 -
Total charges to appropriations 972,304 991,094 (18,790) Fund balance (deficit), June 30, 2024 - $ (24,425) $ (24,425) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Lighting and Landscaping District Special Revenue Fund
For the Year Ended June 30, 2024

Page 219 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023, as restated $ 823,174 823,174 $ - $ Revenues (inflows):

Intergovernmental 1,005,888 1,046,427 40,539
Interest earned on investments 43,602 47,785 4,183
Amount available for appropriations 1,049,490 1,094,212 44,722 Charges to appropriations (outflows):

Public works 578,971 12,395 566,576
Capital outlay 895,754 614,804 280,950
Transfers out 357,865 357,865 -
Total charges to appropriations 1,832,590 985,064 847,526 Fund balance, June 30, 2024 40,074 $ 932,322 $ 892,248 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024

Page 220 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 291,271 291,271 $ - $
Revenues (inflows):

Charges for services 64,000 62,794 (1,206)
Interest earned on investments 13,342 18,469 5,127
Amount available for appropriations 77,342 81,263 3,921 Charges to appropriations (outflows):

General government 138,736 3,317 135,419
Total charges to appropriations 138,736 3,317 135,419
Fund balance, June 30, 2024 229,877 $ 369,217 $ 139,340 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual AB 939 Special Revenue Fund
For the Year Ended June 30, 2024

Page 221 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance (deficit), July 1, 2023 $ (30,603) (30,603) $ - $ Revenues (inflows):

Intergovernmental 96,123 - (96,123)
Amount available for appropriations 96,123 - (96,123)
Charges to appropriations (outflows):

Transfers out 44,963 44,963 -
Total charges to appropriations 44,963 44,963 -
Fund balance (deficit), June 30, 2024 20,557 $ (75,566) $ (96,123) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Prop A Open Space Special Revenue Fund
For the Year Ended June 30, 2024

Page 222 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 343,880 343,880 $ - $
Revenues (inflows):

Charges for services 60,966 38,534 (22,432)
Interest earned on investments 15,487 19,278 3,791
Amount available for appropriations 76,453 57,812 (18,641) Charges to appropriations (outflows):

Public works 240,000 20,659 219,341
Capital outlay 177,546 12,834 164,712
Total charges to appropriations 417,546 33,493 384,053
Fund balance, June 30, 2024 2,787 $ 368,199 $ 365,412 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks/Recreation Facilities Tax Special Revenue Fund
For the Year Ended June 30, 2024

Page 223 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 5,517 5,517 $ - $
Revenues (inflows):

Miscellaneous 5,000 5,000 -
Interest earned on investments 275 357 82
Amount available for appropriations 5,275 5,357 82
Charges to appropriations (outflows):

General government 1,900 1,741 159
Transfers out 3,000 3,000 -
Total charges to appropriations 4,900 4,741 159
Fund balance, June 30, 2024 5,892 $ 6,133 $ 241 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Bayview Drive Administrative Expense Special Revenue Fund For the Year Ended June 30, 2024

Page 224 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 3,702 3,702 $ - $
Revenues (inflows):

Miscellaneous 4,000 4,000 -
Interest earned on investments 193 243 50
Amount available for appropriations 4,193 4,243 50
Charges to appropriations (outflows):

General government 1,500 1,509 (9)
Transfers out 2,500 2,500 -
Total charges to appropriations 4,000 4,009 (9)
Fund balance, June 30, 2024 3,895 $ 3,936 $ 41 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Beach Drive Assessment District Administrative Expense Special Revenue Fund For the Year Ended June 30, 2024

Page 225 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023, as restated $ 1,606,288 1,606,288 $ - $ Revenues (inflows):

Other taxes 459,580 421,661 (37,919)
Interest earned on investments 75,357 89,368 14,011
Amount available for appropriations 534,937 511,029 (23,908) Charges to appropriations (outflows):

Public works - 3,415 (3,415)
Capital outlay 2,089,605 847,166 1,242,439
Total charges to appropriations 2,089,605 850,581 1,239,024 Fund balance, June 30, 2024 51,620 $ 1,266,736 $ 1,215,116 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition "C" Special Revenue Fund
For the Year Ended June 30, 2024

Page 226 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 987,277 987,277 $ - $
Revenues (inflows):

Other taxes 344,685 316,147 (28,538)
Interest earned on investments 38,364 52,494 14,130
Amount available for appropriations 383,049 368,641 (14,408) Charges to appropriations (outflows):

Public works 498,354 15,258 483,096
Capital outlay 847,845 577,658 270,187
Total charges to appropriations 1,346,199 592,916 753,283 Fund balance, June 30, 2024 24,127 $ 763,002 $ 738,875 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "R" Special Revenue Fund
For the Year Ended June 30, 2024

Page 227 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 126,529 126,529 $ - $
Revenues (inflows):

Intergovernmental 25,000 19,183 (5,817)
Interest earned on investments 4,902 5,681 779
Amount available for appropriations 29,902 24,864 (5,038) Charges to appropriations (outflows):

General government 10,000 5,130 4,870
Capital outlay 50,000 41,500 8,500
Total charges to appropriations 60,000 46,630 13,370
Fund balance, June 30, 2024 96,431 $ 104,763 $ 8,332 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Management District Special Revenue Fund
For the Year Ended June 30, 2024

Page 228 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 439,523 439,523 $ - $
Revenues (inflows):

Other taxes 138,525 155,774 17,249
Interest earned on investments 21,054 27,348 6,294
Amount available for appropriations 159,579 183,122 23,543 Charges to appropriations (outflows):

Public safety 131,990 57,465 74,525
Capital outlay 123,300 62,467 60,833
Total charges to appropriations 255,290 119,932 135,358 Fund balance, June 30, 2024 343,812 $ 502,713 $ 158,901 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services Special Revenue Fund For the Year Ended June 30, 2024

Page 229 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 559,860 559,860 $ - $
Revenues (inflows):

Interest earned on investments 26,507 32,501 5,994
Amount available for appropriations 26,507 32,501 5,994 Charges to appropriations (outflows):

Public safety 7,480 7,941 (461)
Capital outlay 600 1,192 (592)
Total charges to appropriations 8,080 9,133 (1,053)
Fund balance, June 30, 2024 578,287 $ 583,228 $ 4,941 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Asset Seizure and Forfeiture Special Revenue Fund
For the Year Ended June 30, 2024

Page 230 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 4,463 4,463 $ - $
Revenues (inflows):

Charges for services 4,120 6,211 2,091
Interest earned on investments 264 414 150
Amount available for appropriations 4,384 6,625 2,241
Charges to appropriations (outflows):

Public safety - - -
Total charges to appropriations - - -
Fund balance, June 30, 2024 8,847 $ 11,088 $ 2,241 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Fire Protection Special Revenue Fund
For the Year Ended June 30, 2024

Page 231 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023, as restated $ 999,540 999,540 $ - $ Revenues (inflows):

Other taxes 390,643 356,997 (33,646)
Interest earned on investments 50,100 43,034 (7,066)
Amount available for appropriations 440,743 400,031 (40,712) Charges to appropriations (outflows):

Public works 164,105 4,132 159,973
Capital outlay 1,306,802 1,208,030 98,772
Total charges to appropriations 1,470,907 1,212,162 258,745 Fund balance, June 30, 2024 (30,624) $ 187,409 $ 218,033 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "M" Special Revenue Fund
For the Year Ended June 30, 2024

Page 232 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance (deficit), July 1, 2023 $ (922,424) (922,424) $ - $ Revenues (inflows):

Intergovernmental - 270,918 270,918
Amount available for appropriations - 270,918 270,918
Charges to appropriations (outflows):

General government - - -
Total charges to appropriations - - -
Fund balance (deficit), June 30, 2024 (922,424) $ (651,506) $ 270,918 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual FEMA Special Revenue Fund
For the Year Ended June 30, 2024
123 Page 233 of 702
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 555,643 555,643 $ - $
Revenues (inflows):

Interest earned on investments 25,008 25,353 345
Amount available for appropriations 25,008 25,353 345
Charges to appropriations (outflows):

Public works - 35,848 (35,848)
Capital outlay 518,715 122,903 395,812
Total charges to appropriations 518,715 158,751 359,964 Fund balance, June 30, 2024 61,936 $ 422,245 $ 360,309 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual RTI Undersea Cable Tidelands Special Revenue Fund
For the Year Ended June 30, 2024

Page 234 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 118,121 118,121 $ - $
Revenues (inflows):

Other taxes 554,063 508,346 (45,717)
Charges for services 1,139 1,017 (122)
Interest earned on investments 18,113 23,296 5,183
Amount available for appropriations 573,315 532,659 (40,656) Charges to appropriations (outflows):

General government 500 19 481
Public safety 30,000 23,594 6,406
Community development 56,757 49,876 6,881
Culture and recreation 81,000 61,069 19,931
Capital outlay 9,600 2,300 7,300
Total charges to appropriations 177,857 136,858 40,999
Fund balance, June 30, 2024 513,579 $ 513,922 $ 343 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition "A" Transit Special Revenue Fund
For the Year Ended June 30, 2024
125 Page 235 of 702
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 997,769 997,769 $ - $
Revenues (inflows):

Intergovernmental - - -
Amount available for appropriations - - -
Charges to appropriations (outflows):

Transfers out 997,769 997,769 -
Total charges to appropriations 997,769 997,769 -
Fund balance, June 30, 2024 - $ - $ - $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual American Rescue Plan Act (ARPA) Special Revenue Fund
For the Year Ended June 30, 2024

Page 236 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 295,363 295,363 $ - $
Revenues (inflows):

Intergovernmental - - -
Amount available for appropriations - - -
Charges to appropriations (outflows):

General government - 15,174 (15,174)
Transfers out 295,362 280,189 15,173
Total charges to appropriations 295,362 295,363 (1)
Fund balance, June 30, 2024 1 $ - $ 1 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual CARES Act Special Revenue Fund
For the Year Ended June 30, 2024
127 Page 237 of 702
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023, as restated $ 328,687 328,687 $ - $ Revenues (inflows):

Other taxes 157,832 158,425 593
Interest earned on investments 19,803 34,662 14,859
Amount available for appropriations 177,635 193,087 15,452 Charges to appropriations (outflows):

Public works - 14,411 (14,411)
Capital outlay 475,110 5,000 470,110
Total charges to appropriations 475,110 19,411 455,699
Fund balance, June 30, 2024 31,212 $ 502,363 $ 471,151 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "W" Special Revenue Fund
For the Year Ended June 30, 2024
128 Page 238 of 702
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 3,625,350 3,625,350 $ - $
Revenues (inflows):

Intergovernmental 25,000 18,953 (6,047)
Charges for services 1,272,278 1,288,835 16,557
Interest earned on investments 160,461 220,456 59,995
Amount available for appropriations 1,457,739 1,528,244 70,505 Charges to appropriations (outflows):

Public works 622,511 675,836 (53,325)
Capital outlay 2,891,417 78,001 2,813,416
Total charges to appropriations 3,513,928 753,837 2,760,091 Fund balance, June 30, 2024 1,569,161 $ 4,399,757 $ 2,830,596 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Sewer Special Revenue Fund
For the Year Ended June 30, 2024
129 Page 239 of 702
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 2,694,495 2,694,495 $ - $
Revenues (inflows):

Other taxes 700,000 700,000 -
Interest earned on investments 119,851 107,512 (12,339) Amount available for appropriations 819,851 807,512 (12,339) Charges to appropriations (outflows):

Public works 555,325 604,311 (48,986)
Capital outlay 2,139,525 192,198 1,947,327
Total charges to appropriations 2,694,850 796,509 1,898,341 Fund balance, June 30, 2024 819,496 $ 2,705,498 $ 1,886,002 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Storm Drain Special Revenue Fund
For the Year Ended June 30, 2024

Page 240 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 95,223 95,223 $ - $
Revenues (inflows):

Transfers in 664,416 664,416 -
Amount available for appropriations 664,416 664,416 -
Charges to appropriations (outflows):

Principal 435,000 435,000 -
Interest and fiscal charges 293,600 283,782 9,818
Total charges to appropriations 728,600 718,782 9,818
Fund balance, June 30, 2024 31,039 $ 40,857 $ 9,818 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 2015 Lease Revenue Bonds Debt Service Fund
For the Year Ended June 30, 2024

Page 241 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 12,331,476 12,331,476 $ - $ Revenues (inflows):

Miscellaneous - 250,000 250,000
Interest earned on investments 551,201 717,128 165,927
Transfers in 1,959,940 4,663,091 2,703,151
Amount available for appropriations 2,511,141 5,630,219 3,119,078 Charges to appropriations (outflows):

General government 83,675 - 83,675
Public safety 181,836 181,836 -
Capital outlay 9,821,196 1,353,545 8,467,651
Total charges to appropriations 10,086,707 1,535,381 8,551,326 Fund balance, June 30, 2024 4,755,910 $ 16,426,314 $ 11,670,404 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Capital Improvements Capital Project Fund
For the Year Ended June 30, 2024

Page 242 of 702 ends

Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2023 $ 120,898 120,898 $ - $
Revenues (inflows):

Use of money and property - - -
Amount available for appropriations - - -
Charges to appropriations (outflows):

Capital outlay 62,325 62,325 -
Total charges to appropriations 62,325 62,325 -
Fund balance, June 30, 2024 58,573 $ 58,573 $ - $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Greenwich Underground Capital Project Fund
For the Year Ended June 30, 2024

Page 243 of 702 ends

INTERNAL SERVICE FUNDS
Insurance Fund - This fund was created to account for costs associated with the City's insurances: liability, workers' compensation, unemployment, auto, property and officials' bonds and settlement losses.

Equipment Replacement Fund - This fund was created to provide ongoing funds to replace assets at the end of the assets' useful life.
134 Page 244 of 702
Equipment
Insurance Replacement
Fund Fund Total
ASSETS
Current assets:

Cash and investments 10,581,454 $ 8,847,135 $ 19,428,589 $ Account receivables 67,001 - 67,001
Total current assets 10,648,455 8,847,135 19,495,590
Noncurrent assets:

Nondepreciable capital assets - 536,655 536,655
Depreciable capital assets, net of accumulated depreciation - 2,300,283 2,300,283 Total noncurrent assets - 2,836,938 2,836,938
Total assets 11,684,073 10,648,455 22,332,528

LIABILITIES
Current liabilities:

Accounts payable 253,918 196,563 450,481
Accrued wages and benefits payable 4,985 14,731 19,716
Workers' compensation claims payable - due within one year 902,838 - 902,838 General liability claims payable - due within one year 770,555 - 770,555 Total current liabilities 1,932,296 211,294 2,143,590
Long-term liabilities:

Workers' compensation claims payable - due in more than one year 4,619,676 - 4,619,676 General liability claims payable - due in more than one year 1,096,483 - 1,096,483 Total long-term liabilities 5,716,159 - 5,716,159
Total liabilities 211,294 7,648,455 7,859,749

NET POSITION
Net investment in capital assets - 2,836,938 2,836,938
Unrestricted 3,000,000 8,635,841 11,635,841
Total net position $ 11,472,779 3,000,000 $ 14,472,779 $

CITY OF HERMOSA BEACH
Combining Schedule of Net Position
All Internal Service Funds
June 30, 2024

Page 245 of 702 ends

Equipment
Insurance Replacement
Fund Fund Total
OPERATING REVENUES:

Charges for services 3,593,757 $ 2,173,458 $ 5,767,215 $ Miscellaneous revenue 114,362 - 114,362
Total operating revenues 2,173,458 3,708,119 5,881,577
OPERATING EXPENSES:

Salaries and wages 129,623 315,449 445,072
Contract services 2,408,633 994,073 3,402,706
Supplies 15 357,675 357,690
Claims expense 1,878,978 - 1,878,978
Depreciation - 611,756 611,756
Total operating expenses 2,278,953 4,417,249 6,696,202
OPERATING INCOME (105,495) (709,130) (814,625)
NON-OPERATING REVENUES (EXPENSES):

Interest expense - (1,512) (1,512)
Gain on disposal of capital assets - 18,913 18,913
Total non-operating revenues (expenses) 17,401 - 17,401 INCOME BEFORE TRANSFERS (88,094) (709,130) (797,224)
Transfers in 1,830,129 1,918,474 3,748,603
Total transfers 1,918,474 1,830,129 3,748,603
Change in net position 1,830,380 1,120,999 2,951,379
Net position, beginning of year 1,879,001 9,642,399 11,521,400 Net position, end of year 3,000,000 $ 11,472,779 $ 14,472,779 $

CITY OF HERMOSA BEACH
Combining Schedule of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2024

Page 246 of 702 ends

Equipment
Insurance Replacement
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received for services from other funds 3,593,757 $ 2,173,458 $ 5,767,215 $ Cash received from insurance recovery 47,387 - 47,387
Cash payments to suppliers for goods and services (2,224,761) (1,303,399) (3,528,160) Cash payments to employees for services (129,671) (358,145) (487,816) Cash payments for insurance premiums and claims (1,955,973) - (1,955,973) Net cash provided (used by) operating activities 511,914 (669,261) (157,347) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in 1,830,129 1,918,474 3,748,603
Net cash provided (used by) non-capital financing activities 1,918,474 1,830,129 3,748,603 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (551,979) (551,979)
Net cash provided (used by) capital and related financing activities (551,979) - (551,979) Net increase (decrease) in cash and cash equivalents 1,160,868 1,878,409 3,039,277 Cash and equivalents, beginning of year 9,420,586 6,968,726 16,389,312 Cash and equivalents, end of year 10,581,454 $ 8,847,135 $ 19,428,589 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (709,130) $ (105,495) $ (814,625) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - 611,756 611,756
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (66,975) - (66,975) Increase (decrease) in accounts payable 183,791 48,349 232,140 Increase (decrease) in accrued wages and benefits payable 48 734 782 Increase (decrease) in workers' compensation claims payable (366,535) - (366,535) Increase (decrease) in general liability claims payable 289,540 - 289,540 Increase (decrease) in compensated absences - (43,430) (43,430) Total adjustments 39,869 617,409 657,278
Net cash provided (used) by operating activities $ 511,914 (669,261) $ (157,347) $

CITY OF HERMOSA BEACH
Combining Schedule of Cash Flows
All Internal Service Funds
For the year ended June 30, 2024

Page 247 of 702 ends

FIDUCIARY FUND

FINANCIAL STATEMENTS
The Custodial Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 138 Page 248 of 702
Lower Pier
Avenue Beach Drive
Assessment Assessment
Bayview Drive Bayview Drive District District
Redemption Reserve Redemption Redemption
Cash and investments 92,883 $ 15,577 3,300 30,545
Interest receivable 581 97 20 194
Other receivables 1,416 - - 809
Total assets $ 15,674 94,880 3,320 31,548
Installment account 90,688 $ 4,823 3,143 30,193
Reserve requirement - 10,000 - -
Total liabilities 14,823 90,688 3,143 30,193
NET POSITION $ 851 4,192 $ 177 $ 1,355 $

CITY OF HERMOSA BEACH
Combining Schedule of Fiduciary Net Position
All Custodial Funds
ASSETS

LIABILITIES
June 30, 2024

Page 249 of 702 ends

Myrtle Avenue Loma Drive
Beach Drive Utility Utility
Assessment Undergrounding Undergrounding
District Assessment Assessment
Reserve District District Total
Cash and investments 4,807 $ 51,709 90,230 289,051
Interest receivable 30 - - 922
Other receivables - - - 2,225
Total assets $ 4,837 51,709 90,230 292,198
Installment account 1,577 $ 51,709 90,230 272,363
Reserve requirement 3,000 - - 13,000
Total liabilities 51,709 4,577 90,230 285,363
NET POSITION $ - 260 $ - $ 6,835 $

CITY OF HERMOSA BEACH
Combining Schedule of Fiduciary Net Position
All Custodial Funds
ASSETS

LIABILITIES
June 30, 2024

Page 250 of 702 ends

Bayview Bayview
Drive Drive
Redemption Reserve
Additions:

Interest income 581 $ 97
Other revenues 94,299 15,577
Total additions 94,880 15,674
Deductions:

Miscellaneous 90,688 14,823
Total deductions 90,688 14,823
Changes in net position 4,192 851
Net position, beginning of year - -
Net position, end of year 4,192 $ 851

CITY OF HERMOSA BEACH
Combining Schedule of Changes in Fiduciary Net Position All Custodial Funds
For the Year Ended June 30, 2024

Page 251 of 702 ends

Beach
Lower Pier Ave Drive
Assessment Assessment
District District
Redemption Redemption
Additions:

Interest income 20 $ 194
Other revenues 3,300 31,354
Total additions 3,320 31,548
Deductions:

Miscellaneous 3,143 30,193
Total deductions 3,143 30,193
Changes in net position 177 1,355
Net position, beginning of year - -
Net position, end of year 177 $ 1,355

CITY OF HERMOSA BEACH
Combining Schedule of Changes in Fiduciary Net Position All Custodial Funds
For the Year Ended June 30, 2024

Page 252 of 702 ends

Myrtle Ave
Beach Drive Utility
Assessment Undergrounding
District Assesment
Reserve District
Additions:

Interest income 30 $ -
Other revenues 4,807 51,709
Total additions 4,837 51,709
Deductions:

Miscellaneous 4,577 51,709
Total deductions 4,577 51,709
Changes in net position 260 -
Net position, beginning of year - -
Net position, end of year 260 $ -

CITY OF HERMOSA BEACH
Combining Schedule of Changes in Fiduciary Net Position All Custodial Funds
For the Year Ended June 30, 2024

Page 253 of 702 ends

Loma Drive
Utility
Undergrounding
Assessment
District Totals
Additions:

Interest income - $ 922
Other revenues 90,230 291,276
Total additions 90,230 292,198
Deductions:

Miscellaneous 90,230 285,363
Total deductions 90,230 285,363
Changes in net position - 6,835
Net position, beginning of year - -
Net position, end of year - $ 6,835.00

CITY OF HERMOSA BEACH
Combining Schedule of Changes in Fiduciary Net Position All Custodial Funds
For the Year Ended June 30, 2024

Page 254 of 702 ends

STATISTICAL SECTION
145 Page 255 of 702

STATISTICAL SECTION
This part of the City of Hermosa Beach's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government' overall financial health.

Contents Pages
Financial Trends 147-152
These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time.

Revenue Capacity 153-159
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.

Debt Capacity 160-171
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

Demographic and Economic Information 172-174
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.

Operating Information 175-176
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
146 Page 256 of 702
2015 2016 2017 2018 2019
Governmental activities:

Net investment in capital assets 66,733,301 $ 66,933,796 $ 66,417,072 $ 66,333,070 $ 64,375,911 $ Restricted 4,188,404 3,774,552 5,260,908 5,584,794 5,056,977 Unrestricted (24,869,037) (18,769,530) (13,287,058) (10,942,703) (8,841,583) Total governmental activities net position 46,052,668 $ 51,938,818 $ 58,390,922 $ 60,975,161 $ 60,591,305 $ Business-type activities:

Net investment in capital assets - $ - $ - $ - $ - $
Restricted - - - - -
Unrestricted - - - - -
Total business-type activities net position - $ - $ - $ - $ - $ Primary government:

Net investment in capital assets 66,733,301 $ 66,933,796 $ 66,417,072 $ 66,333,070 $ 64,375,911 $ Restricted 4,188,404 3,774,552 5,260,908 5,584,794 5,056,977 Unrestricted (24,869,037) (18,769,530) (13,287,058) (10,942,703) (8,841,583) Total primary government net position 46,052,668 $ 51,938,818 $ 58,390,922 $ 60,975,161 $ 60,591,305 $

1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012.

Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)

CITY OF HERMOSA BEACH
Net Position by Component
147

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2020 2021 2022 2023 2024
Governmental activities:

Net investment in capital assets 66,556,499 $ 65,145,247 $ 66,545,127 $ 67,871,420 $ 72,320,196 $ Restricted 6,399,646 8,376,641 10,995,392 13,556,867 20,141,771 Unrestricted (12,400,420) (13,440,076) (11,325,466) (729,396) (4,374,704) Total governmental activities net position 60,555,725 $ 60,081,812 $ 66,215,053 $ 80,698,891 $ 88,087,263 $ Business-type activities:

Net investment in capital assets - $ - $ - $ - $ - $
Restricted - - - - -
Unrestricted - - - - -
Total business-type activities net position - $ - $ - $ - $ - $ Primary government:

Net investment in capital assets 66,556,499 $ 65,145,247 $ 66,545,127 $ 67,871,420 $ 72,320,196 $ Restricted 6,399,646 8,376,641 10,995,392 13,556,867 20,141,771 Unrestricted (12,400,420) (13,440,076) (11,325,466) (729,396) (4,374,704) Total primary government net position 60,555,725 $ 60,081,812 $ 66,215,053 $ 80,698,891 $ 88,087,263 $

1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012. (accrual basis of accounting) (Continued)
Fiscal Year

CITY OF HERMOSA BEACH
Net Position by Component
Last Ten Fiscal Years
148

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2015 2016 2017 2018 2019
Expenses:

Governmental activities:

Legislative and legal 1,293,214 $ 2,083,297 $ 2,043,740 $ 1,869,599 $ 1,563,872 $ General government 3,078,044 2,262,107 3,598,512 4,129,246 4,257,735 Public safety 16,737,044 20,034,932 18,911,734 25,496,398 21,257,544 Community development 1,710,563 1,347,087 1,787,364 2,264,015 2,054,759 Culture and recreation 1,257,311 1,108,749 1,310,740 1,769,893 1,565,784 Public works 6,985,762 9,131,490 7,957,044 9,176,521 12,847,372 Interest and fiscal charges - - - - 375,815
Total governmental activities expenses 31,061,938 35,967,662 35,609,134 44,705,672 43,922,881 Business-type activities:

Downtown Enhancement - - - - -
Parking
Proposition "A" Transit
Proposition "C" Transit
Total business-type activities expenses - - - - -
Total primary government expenses 31,061,938 35,967,662 35,609,134 44,705,672 43,922,881 Program revenues:

Governmental activities:

Charges for services:

General government 2,582,857 2,414,955 2,433,987 2,538,028 476,403 Public safety 5,398,329 5,254,859 4,993,104 4,957,188 3,137,319 Community development 1,679,400 1,996,538 1,664,132 1,691,752 1,735,699 Culture and recreation 1,522,417 1,178,323 1,341,455 1,223,789 974,306 Public works 1,085,165 2,217,610 2,374,774 2,292,254 3,426,223 Operating grants and contributions 983,628 755,650 601,816 517,244 3,505,669 Capital grants and contributions 328,649 203,033 327,534 27,821 526,421 Total governmental activities
program revenues: 13,580,445 14,020,968 13,736,802 13,248,076 13,782,040 Business-type activities:

Charges for services:

Downtown Enhancement - - - - -
Parking - - - - -
Proposition A Transit - - - - -
Proposition C Transit - - - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues: - - - - -
Total primary government
program revenues: 13,580,445 14,020,968 13,736,802 13,248,076 13,782,040 Last Ten Fiscal Years
(accrual basis of accounting)

CITY OF HERMOSA BEACH
Changes in Net Position
Fiscal Year
149 Page 259 of 702
2015 2016 2017 2018 2019
Net revenues (expenses):

Governmental activities (17,481,493) (21,946,694) (21,872,332) (31,457,596) (30,140,841) Business-type activities - - - - -
Total net revenues (expenses) (17,481,493) (21,946,694) (21,872,332) (31,457,596) (30,140,841) General revenues and other changes in net position:

Governmental activities:

Taxes:

Property taxes 13,739,648 15,317,458 15,714,094 17,097,712 18,640,303 Sales tax 2,768,225 2,895,794 2,816,289 3,151,207 3,133,311 Other taxes 7,179,945 7,527,467 7,930,375 7,878,400 7,107,116 Grants and contributions not restricted to
specific programs 1,246,419 1,369,042 1,304,880 1,315,223 2,346,524 Investment income 510,668 455,234 - - -
Other general revenues 489,740 267,849 564,798 982,343 2,701,560 Transfers - - - - -
Settlement (Note 14) (14,000,000) - - - -
Total governmental activities 11,934,645 27,832,844 28,330,436 30,424,885 33,928,814 Business-type activities:

Investment income - - - - -
Other general revenues - - - - -
Miscellaneous - - - - -
Transfers - - - - -
Total business-type activities - - - - -
Total primary government 11,934,645 27,832,844 28,330,436 30,424,885 33,928,814 Changes in net position
Governmental activities: (5,546,848) 5,886,150 6,458,104 (1,032,711) 3,787,973 Business-type activities: - - - - -
Total primary government (5,546,848) $ 5,886,150 $ 6,458,104 $ (1,032,711) $ 3,787,973 $ 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006. (accrual basis of accounting) (Continued)
Fiscal Year

CITY OF HERMOSA BEACH
Changes in Net Position
Last Ten Fiscal Years
150 Page 260 of 702
2020 2021 2022 2023 2024
Expenses:

Governmental activities:

Legislative and legal 1,644,044 $ 1,868,411 $ 1,541,621 $ 1,450,333 $ 1,828,651 $ General government 6,023,648 6,183,616 5,787,890 5,522,123 7,293,441 Public safety 25,546,098 26,942,447 26,720,959 24,019,361 29,781,399 Community development 3,215,102 2,725,596 2,364,948 1,962,635 2,655,249 Culture and recreation 1,867,143 1,571,300 2,476,406 1,878,360 2,485,981 Public works 7,515,310 7,272,166 8,721,736 9,693,424 11,018,772 Interest and fiscal charges 295,723 400,465 149,145 257,618 124,125 Total governmental activities expenses 46,107,068 46,964,001 47,762,705 44,783,854 55,187,618 Business-type activities:

Downtown Enhancement - - - - -
Parking
Proposition "A" Transit
Proposition "C" Transit
Total business-type activities expenses - - - - -
Total primary government expenses 46,107,068 46,964,001 47,762,705 44,783,854 55,187,618 Program revenues:

Governmental activities:

Charges for services:

General government 685,320 650,066 1,039,464 475,489 1,184,159 Public safety 4,857,617 4,602,983 4,464,241 4,664,069 6,175,263 Community development 1,532,538 1,494,412 1,634,826 2,210,691 1,512,639 Culture and recreation 546,379 849,247 1,045,006 1,022,525 1,064,165 Public works 1,426,203 1,578,604 1,417,059 1,597,076 1,584,914 Operating grants and contributions 3,419,173 2,640,033 4,964,468 7,956,332 4,096,793 Capital grants and contributions 833,644 45,817 60,645 (47,367) 2,824,689 Total governmental activities
program revenues: 13,300,874 11,861,162 14,625,709 17,878,815 18,442,622 Business-type activities:

Charges for services:

Downtown Enhancement - - - - -
Parking - - - - -
Proposition A Transit - - - - -
Proposition C Transit - - - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues: - - - - -
Total primary government
program revenues: 13,300,874 11,861,162 14,625,709 17,878,815 18,442,622 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006.

CITY OF HERMOSA BEACH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
Fiscal Year
151

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2020 2021 2022 2023 2024
Net revenues (expenses):

Governmental activities (32,806,194) (35,102,839) (33,136,996) (26,905,039) (36,744,996) Business-type activities - - - - -
Total net revenues (expenses) (32,806,194) (35,102,839) (33,136,996) (26,905,039) (36,744,996) General revenues and other changes in net position:

Governmental activities:

Taxes:

Property taxes 19,584,959 20,966,460 21,886,313 23,145,983 24,975,484 Sales tax 2,722,468 3,192,853 3,848,960 3,621,875 3,772,564 Other taxes 7,134,010 7,233,903 9,991,454 10,592,183 9,791,653 Grants and contributions not restricted to
specific programs 1,829,299 2,490,562 2,212,461 2,200,305 2,716,844 Investment income - - - - -
Other general revenues 1,499,878 745,148 1,331,049 1,828,531 2,876,823 Transfers - - - - -
Settlement (Note 14) - - - - -
Total governmental activities 32,770,614 34,628,926 39,270,237 41,388,877 44,133,368 Business-type activities:

Investment income - - - - -
Other general revenues - - - - -
Miscellaneous - - - - -
Transfers - - - - -
Total business-type activities - - - - -
Total primary government 32,770,614 34,628,926 39,270,237 41,388,877 44,133,368 Changes in net position
Governmental activities: (35,580) (473,913) 6,133,241 14,483,838 7,388,372 Business-type activities: - - - - -
Total primary government (35,580) $ (473,913) $ 6,133,241 $ 14,483,838 $ 7,388,372 $ 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006.

CITY OF HERMOSA BEACH
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
Fiscal Year
152

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1/2 cent
Fiscal Real sales tax
year property extension Transient Utility
ended Property Sales transfer Franchise for public occupancy user's Business June 30 tax tax tax fees safety tax tax license Total
2015 13,739,648 2,768,225 312,416 785,935 229,824 2,349,750 2,442,575 1,059,445 23,687,818 2016 15,317,458 2,895,795 320,731 776,316 212,511 2,762,444 2,388,825 1,058,663 25,732,743 2017 15,714,094 2,886,298 345,603 720,338 218,092 3,237,026 2,302,024 1,098,421 26,521,896 2018 17,097,712 3,151,207 326,224 722,316 233,291 3,295,207 2,229,906 1,061,130 28,116,993 2019 18,640,303 3,133,311 272,138 720,853 244,252 3,251,349 2,195,815 1,107,723 29,565,744 2020 19,584,959 2,722,468 313,331 717,191 239,965 2,599,810 2,093,903 1,162,017 29,433,644 2021 20,966,460 3,192,853 453,596 721,090 261,051 2,552,964 2,171,538 1,065,762 31,385,314 2022 21,886,313 3,848,960 685,820 757,448 299,037 4,730,760 2,369,269 1,149,120 35,726,727 2023 23,145,983 3,621,875 338,528 823,981 294,525 5,151,136 2,761,918 1,222,095 37,360,041 2024 24,975,484 3,772,564 319,702 927,439 290,699 4,942,254 2,041,200 1,270,359 38,539,701 (accrual basis of accounting)

CITY OF HERMOSA BEACH
Governmental Activities Tax Revenues By Source
Last Ten Years
153

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2015 2016 2017 2018 2019
General Fund:

Reserved
Unreserved
Non-spendable 19,444 $ 21,261 $ 66,700 $ 478,479 $ - $
Restricted 460,304 329,890 158,149 170,336 -
Committed 28,900 28,900 1,115,600 1,144,500 -
Assigned 10,005,040 8,529,250 8,322,103 7,781,460 -
Unassigned - - - - 10,514,092
Total general fund 10,513,688 $ 8,909,301 $ 9,662,552 $ 9,574,775 $ 10,514,092 $ All other governmental funds:

Reserved
Unreserved, reported in:

Special revenue funds
Non-spendable - 5,835 $ 7,083 $ 9,280 $ 2,310 $
Restricted 3,728,100 $ 3,430,617 5,102,759 7,677,889 5,561,493 Committed 431,716 1,305,276 879,008 1,144,884 1,024,954 Assigned 7,646,948 11,348,565 12,706,958 13,068,691 16,241,139 Unassigned (24,138) - - - (111)
Total all other governmental funds 11,806,764 $ 16,066,155 $ 18,695,808 $ 21,900,744 $ 22,829,785 $ Total governmental funds 22,320,452 $ 24,975,456 $ 28,358,360 $ 31,475,519 $ 33,343,877 $ Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data.

CITY OF HERMOSA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
155

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2020 2021 2022 2023 2024
General Fund:

Reserved
Unreserved
Non-spendable - $ 560,718 $ 15,408 $ 622,095 $ 954,276 $ Restricted - 437,326 454,115 513,248 567,910
Committed - 1,995,135 2,255,235 2,255,235 2,255,235
Assigned - 10,669,958 13,879,982 13,059,368 13,272,035
Unassigned 13,122,873 5,834,252 4,046,666 2,700,989 -
Total general fund 13,122,873 $ 19,497,389 $ 20,651,406 $ 19,150,935 $ 17,049,456 $ All other governmental funds:

Reserved
Unreserved, reported in:

Special revenue funds
Non-spendable - $ 15,179 $ - $ 18,325 $ 19,176 $
Restricted 6,399,757 9,989,766 12,260,261 14,971,332 13,725,977 Committed 1,405,179 2,592,712 2,741,002 2,852,821 3,279,269 Assigned 5,327,702 10,646,352 9,412,839 12,331,476 16,426,314 Unassigned (827,043) 9,446,109 (1,059,597) (2,138,529) (1,052,257) Total all other governmental funds 22,578,747 $ 22,416,966 $ 23,354,505 $ 28,035,425 $ 32,398,479 $ Total governmental funds 35,701,620 $ 41,914,355 $ 44,005,911 $ 47,186,360 $ 49,447,935 $ Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data.

CITY OF HERMOSA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) (Continued)
Fiscal Year
156

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2015 2016 2017 2018 2019
Revenues:

Property taxes 14,198,054 $ 15,113,479 $ 16,209,008 $ 17,530,492 $ 18,565,796 $ Other taxes 10,992,377 11,302,910 11,821,528 12,248,900 12,306,567 Licenses and permits 916,073 1,111,366 967,956 1,055,631 850,059 Fines and forfeitures 2,652,193 2,412,554 2,122,335 2,809,367 2,373,432 Use of money and property 1,087,758 965,738 1,047,084 1,340,018 1,952,941 Intergovernmental 1,290,849 949,255 1,031,191 358,523 1,062,434 Charges for services 7,318,409 8,130,681 8,412,322 9,259,210 8,303,529 Miscellaneous 688,047 679,937 540,021 249,152 634,114
Interest earned on investments 244,026 445,260 6,175 152,359 1,380,012 Total revenues 39,387,786 41,111,180 42,157,620 45,003,652 47,428,884 Expenditures
Current:

Legislative and legal 1,170,229 1,958,940 1,448,509 1,313,261 1,499,065 General government 3,040,426 3,458,191 3,722,659 3,751,020 4,274,743 Public safety 18,142,958 21,272,474 21,392,637 21,468,409 22,087,381 Community development 1,722,513 1,806,130 1,869,018 2,034,235 2,063,502 Culture and recreation 1,246,532 1,291,808 1,395,915 1,446,996 1,600,519 Public works 5,317,541 6,622,698 6,106,648 6,343,525 6,756,773 Capital outlay 3,620,185 2,953,123 1,644,253 2,164,817 6,058,710 Debt service:

Principal n/a - 335,000 434,992 460,000
Interest n/a 233,425 375,332 355,738 332,497
Total expenditures 34,260,384 39,363,364 38,289,971 39,312,993 45,133,190 Excess (deficiency) of revenues
over (under) expenditures 5,127,402 1,747,816 3,867,649 5,690,659 2,295,694 Other financing sources (uses)
Proceeds from sale of assets - 11,799,905 - - -
Transfers in 6,911,913 5,733,408 1,942,014 1,271,842 4,155,801 Transfers out (5,172,700) (16,392,700) (2,356,750) (3,915,326) (4,583,137) Proceeds from Subscriptions - - - - -
Total other financing
sources (uses) 1,739,213 1,140,613 (414,736) (2,643,484) (427,336) Net change in fund balances 6,866,615 $ 2,888,429 $ 3,452,913 $ 3,047,175 $ 1,868,358 $ Debt service as a percentage of
noncapital expenditures 0.0% 0.6% 2.0% 2.2% 2.1%
Fiscal Year

CITY OF HERMOSA BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
157

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2020 2021 2022 2023 2024
Revenues:

Property taxes 19,573,354 $ 20,968,403 $ 21,922,948 $ 23,174,289 $ 24,973,329 $ Other taxes 11,188,808 11,972,339 15,687,716 16,595,064 16,181,568 Licenses and permits 729,622 904,362 867,849 1,049,519 870,207 Fines and forfeitures 2,237,802 2,133,603 1,643,056 1,436,162 1,449,099 Use of money and property 1,069,049 1,542,571 1,461,133 1,951,194 1,218,084 Intergovernmental 1,333,882 1,324,163 3,427,949 3,877,989 3,648,226 Charges for services 7,346,217 7,543,716 8,585,682 8,920,954 11,501,579 Miscellaneous 673,546 196,138 850,282 637,368 887,555
Interest earned on investments 1,173,125 10,289 (1,015,424) (211,644) 2,512,545 Total revenues 45,325,405 46,595,584 53,431,191 57,430,895 63,242,192 Expenditures
Current:

Legislative and legal 1,300,018 1,474,436 1,329,719 1,538,192 1,536,996 General government 4,850,826 4,882,989 5,251,041 5,856,643 6,299,059 Public safety 21,604,659 22,155,535 24,971,084 25,474,408 27,020,271 Community development 2,601,067 2,177,790 2,146,386 2,081,527 2,329,128 Culture and recreation 1,587,893 1,338,693 1,913,671 1,992,148 2,233,376 Public works 6,685,858 6,581,335 7,945,832 9,070,353 10,468,773 Capital outlay 4,863,984 853,530 4,671,131 5,433,171 6,625,573 Debt service:

Principal 480,000 491,542 395,000 430,839 462,144
Interest 310,107 229,987 309,638 304,178 285,519
Total expenditures 44,284,412 40,185,837 48,933,502 52,181,459 57,260,839 Excess (deficiency) of revenues
over (under) expenditures 1,040,993 6,409,747 4,497,689 5,249,436 5,981,353 Other financing sources (uses)
Proceeds from sale of assets - - - - -
Transfers in 3,930,602 4,504,242 6,933,843 7,278,839 7,499,745 Transfers out (2,613,852) (4,504,242) (9,339,976) (9,412,204) (11,248,348) Proceeds from Subscriptions - - - 64,378 28,825
Total other financing
sources (uses) 1,316,750 - (2,406,133) (2,068,987) (3,719,778) Net change in fund balances 2,357,743 $ 6,409,747 $ 2,091,556 $ 3,180,449 $ 2,261,575 $ Debt service as a percentage of
noncapital expenditures 2.1% 1.9% 1.4% 1.6% 1.5%
Fiscal Year

CITY OF HERMOSA BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) (Continued)
158

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Fiscal Real
year property Transient Utility
ended Property Sales transfer Franchise occupancy user's June 30 tax tax tax fees tax tax Other Total
2015 14,198,054 2,768,225 312,416 785,935 2,349,750 2,442,575 2,333,476 25,190,431 2016 15,113,479 2,895,794 320,731 776,316 2,762,444 2,388,824 2,290,061 26,547,649 2017 16,209,008 2,886,298 345,603 720,338 3,237,026 2,302,024 2,330,238 28,030,538 2018 17,530,492 3,151,207 326,224 722,316 3,295,207 2,229,906 2,524,040 29,779,392 2019 18,565,796 3,133,311 272,138 720,853 3,251,349 1,495,815 3,433,101 30,872,363 2020 19,573,354 2,722,468 313,331 717,191 2,599,810 2,093,903 2,742,105 30,762,162 2021 20,968,403 3,192,853 453,596 721,090 2,552,964 2,171,538 3,580,298 33,640,742 2022 21,922,948 3,848,960 685,820 757,448 4,730,760 2,369,269 3,332,094 37,647,299 2023 23,174,289 3,621,875 338,528 823,981 5,151,136 2,761,918 3,897,626 39,769,353 2024 24,973,329 3,772,564 319,702 927,439 4,942,254 2,741,200 3,478,409 41,154,897 (modified accrual basis of accounting)

CITY OF HERMOSA BEACH
General Government Tax Revenues By Source
Last Ten Fiscal Years
159

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Fiscal Total Estimated
year Total taxable direct actual
ended Residential Commercial Industrial Less assessed tax taxable Percentage June 30 property property property Other exemptions value rate value increase 2015 5,181,815 455,035 12,635 104,834 (43,278) 5,711,045 1.00 5,667,767 6.16% 2016 5,522,546 484,979 13,186 111,635 (43,260) 6,089,089 1.00 6,045,828 6.62% 2017 5,994,296 508,160 13,921 120,700 (43,295) 6,593,784 1.00 6,550,489 8.29% 2018 6,432,195 532,168 14,242 145,238 (41,125) 7,082,716 1.00 7,041,591 7.42% 2019 6,837,257 566,389 15,437 162,374 (41,043) 7,540,415 1.00 7,499,372 6.46% 2020 7,218,636 599,922 16,254 181,411 (26,930) 7,989,293 1.00 7,962,363 5.95% 2021 7,682,189 624,581 17,697 149,144 (34,812) 8,459,799 1.00 8,424,987 5.89% 2022 7,995,527 658,655 16,545 197,187 (31,914) 8,836,000 1.00 8,804,087 4.45% 2023 8,501,986 686,782 16,876 207,849 (33,766) 9,379,727 1.00 9,345,962 6.15% 2024 9,180,945 758,520 17,214 238,817 (29,748) 10,174,748 1.00 10,145,000 8.48% NOTE:

Source: Los Angeles County Auditor-Controller
Note: Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code.

CITY OF HERMOSA BEACH
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(In Thousands)
In 1978, the voters of the State of California passed Proposition 13 which limited 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 of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value 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. 160

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City
direct rate Overlapping rates
El Camino Flood
Fiscal Basic Hermosa Beach Community Los Angeles Control Metropolitan Year rate * School District College District County District Water District Total 2015 1.000000 0.014729 0.017422 - - 0.003500 1.035651
2016 1.000000 0.015746 0.017447 - - 0.003500 1.036693
2017 1.000000 0.014928 0.022942 - - 0.003500 1.041370
2018 1.000000 0.040245 0.021199 - - 0.003500 1.064944
2019 1.000000 0.025942 0.022229 - - 0.003500 1.051671
2020 1.000000 0.039696 0.021555 - - 0.003500 1.064751
2021 1.000000 0.039111 0.023624 - - 0.003500 1.066235
2022 1.000000 0.035275 0.022639 - - 0.003500 1.061414
2023 1.000000 0.034923 0.022989 - - 0.003500 1.061412
2024 1.000000 0.034953 0.021160 - - 0.003500 1.059613
Source: Los Angeles County Auditor-Controller

CITY OF HERMOSA BEACH
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of assessed value)
Note: In 1978 California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. The 1.00% is shared by all taxing agencies wherein the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. * The Basic rate for all years is comprised of the following:

0.2774 - Los Angeles County

0.2030 - Tax District # 1

0.1602 - Educational Augmentation Fund Impound

0.0849 - Educational Revenue Augmentation Fund

0.0541 - Hermosa Beach City School District

0.0526 – Redondo Beach Unified School District

0.0281 - Development Center Handicapped Minor – Redondo Beach

0.0275 - El Camino Community College District

0.0264 – Manhattan Beach Unified School District

0.0210 - Los Angeles County Library

0.01410 – Development Center Handicapped Minor – Manhattan Beach

0.01203 - South Bay Cities Sanitation District Operating

0.00861 - Los Angeles County Flood Control Maintenance

0.00859 - County School Service Fund – Hermosa Beach

0.00827 - Beach Cities Hospital District

0.00637 – Los Angeles County FFW

0.00258 - Childrens Instil. Tuition Fund

0.00152 - Los Angeles Flood Drain Improvement District Maintenance

0.00130 - County School Services

0.00094 – Development Center Handicapped Minor – Hermosa Beach C

0.00019 - Los Angeles County West Vector Control District

0.00016 - Water Replenishment District of Southern California

0.00010 - Los Angeles County Accumulated Capital Outlay

1.0000000
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Percent of total
Taxable city taxable
assessed value assessed value
415 Herondo Street Ground Owner LP (1) 165,988,792 $ 1.63% 414 2nd Street Ground Owner LP (1) 114,837,446 1.13%
Manhattan Avenue Properties LLC (5) 38,469,062 0.38%
Strand and Pier Hermosa Parents LLC (7) 31,179,833 0.31% South Bay LLC (7) 28,896,306 0.28%
1604 PCH LP (1) 28,322,858 0.28%
Sailfish Holdings LLC (3) 22,439,055 0.22%
Stephen F Bacon Cotrustee (1) 22,087,361 0.22%
Skechers USA Inc (1) 21,737,727 0.21%
Hermosa Hotel Investments LLC (1) 20,593,439 0.20%
$ 4.86% 494,551,879
Percent of total
Taxable city taxable
assessed value assessed value
$ 1.34% 76,500,859
EQR Gallery Apartments Limited Partnership (1) 68,522,454 1.20% 1601 PCH LP (1) 24,037,838 0.42%
Strand and Pier Hermosa Parent LLC (4) 19,588,528 0.34% William Stirton Trust (4) 17,549,301 0.31%
Hermosa Hotel Investments LLC (1) 17,004,571 0.30%
Reg8 Plaza Hermosa LLC (7) 15,026,753 0.26%
Johnny and Elizabeth Lopez Trust (1) 14,800,000 0.26%
Sepulveda Design Center LLC (5) 14,572,382 0.26%
Boris LLC (1) 13,168,554 0.23%
$ 4.92% 280,771,240
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls Numbers in parentheses represent the number of parcels owned by the tax payer.

CITY OF HERMOSA BEACH
Principal Property Tax Payers
Current Year and Ten Years ago
Taxpayer
Crico of Fountain Place Limited Partnership (1)
Taxpayer
2015
2024
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Fiscal Taxes levied Collections in
year ended for the Percent subsequent Percent
June 30 fiscal year Amount of levy years Amount of levy 2015 12,081,959 11,805,592 97.71% 11,805,592 97.71%
2016 12,879,664 12,577,259 97.65% 12,577,259 97.65%
2017 13,875,400 13,547,393 97.64% 13,547,393 97.64%
2018 14,957,019 14,575,846 97.45% 14,575,846 97.45%
2019 15,894,003 15,455,825 97.24% 15,455,825 97.24%
2020 16,884,378 16,257,197 96.29% 16,257,197 96.29%
2021 17,849,937 17,293,022 96.88% 17,293,022 96.88%
2022 18,585,314 18,052,702 97.13% 18,052,702 97.13%
2023 19,634,765 19,105,717 97.31% 19,105,717 97.31%
2024 20,796,127 21,450,615 96.95% 20,796,127 96.95%
Source: Los Angeles County Auditor-Controller
fiscal year of levy Total collections to date

CITY OF HERMOSA BEACH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
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Fiscal
year ended Number of Number of Total assessed
June 30 permits Valuation permits Valuation value
2015 457 39,058,181 52 1,947,535 5,711,045,616
2016 554 44,224,105 68 9,283,387 6,089,089,031
2017 448 37,467,738 40 4,791,924 6,593,783,921
2018 475 30,748,372 44 6,234,344 7,082,716,558
2019 422 40,170,245 38 2,785,223 7,540,414,646
2020 388 31,076,905 43 4,961,480 7,989,293,188
2021 806 24,132,281 63 27,325,785 8,459,798,643
2022 384 37,378,630 30 6,463,748 8,836,000,467
2023 538 40,525,944 58 35,274,799 9,379,727,251
2024 564 38,975,840 58 4,823,196 10,174,748,050
Source: City of Hermosa Beach Community Development Department Los Angeles County Auditor-Controller
Residential Commercial

CITY OF HERMOSA BEACH
Construction Value and Property Value
Last Ten Fiscal Years
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City assessed valuation 10,174,748,050 $
Redevelopment agency incremental valuation -
Total assessed valuation 10,174,748,050 $
Estimated
share of
Percentage Outstanding debt overlapping
applicable 6/30/24 debt
Overlapping debt repaid with property taxes:

West Basin Water District debt service 0.263% 18,210,000 47,892 Hermosa Beach School District debt service 100.000% 57,891,332 57,861,332 El Camino Community College District debt service 6.876% 447,104,356 30,742,896 Total overlapping debt repaid with property taxes 523,205,688 $ 88,652,120 City direct debt:
2015 Lease Revenue Bonds (including premiums) 8,004,743 $ Subscription Agreements 21,395
Total City direct debt 8,026,138
Total direct and overlapping debt $ 96,678,258
Direct Debt 0.079%
Overlapping Debt 0.871%
Total Debt 0.950%
Source: HdL Coren & Cone
Los Angeles County Assessor's Office
The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

CITY OF HERMOSA BEACH
Direct and Overlapping Debt
June 30, 2024
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2015 2016 2017 2018 2019
Assessed valuation 5,711,045,616 $ 6,089,089,031 $ 6,593,783,921 $ 7,082,716,558 $ 7,540,414,646 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,427,761,404 $ 1,522,272,258 $ 1,648,445,980 $ 1,770,679,140 $ 1,885,103,662 $ Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 214,164,211 $ 228,340,839 $ 247,266,897 $ 265,601,871 $ 282,765,549 $ Total net debt applicable to limit - $ 11,500,000 $ 11,265,000 $ 10,830,000 $ 10,370,000 $ Legal debt margin 214,164,211 $ 239,840,839 $ 236,001,897 $ 254,771,871 $ 272,395,549 $ Total debt applicable to the limit
as a percentage of debt limit 0% 5.3% 4.7% 4.3% 3.8%
valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted.

Source: City of Hermosa Beach Finance Department
County of Los Angeles, Auditor-Controller
California Government Code section 43605 provides for a legal debt limit of 15% Fiscal Year

CITY OF HERMOSA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
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2020 2021 2022 2023 2024
Assessed valuation 7,989,293,188 $ 8,459,798,643 $ 8,836,000,467 $ 9,379,727,251 $ 10,174,748,050 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,997,323,297 $ 2,114,949,661 $ 2,209,000,117 $ 2,344,931,813 $ 2,543,687,013 $ Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 299,598,495 $ 317,242,449 $ 331,350,018 $ 351,739,772 $ 381,553,052 $ Total net debt applicable to limit 9,890,000 $ 8,150,000 $ 7,755,000 $ 7,340,000 $ 6,905,000 $ Legal debt margin 289,708,495 $ 309,092,449 $ 323,595,018 $ 344,399,772 $ 374,648,052 $ Total debt applicable to the limit
as a percentage of debt limit 3.4% 2.6% 2.4% 2.1% 1.8%
valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted.

Source: City of Hermosa Beach Finance Department
County of Los Angeles, Auditor-Controller
Fiscal Year
California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed

CITY OF HERMOSA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years (Continued)
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Fiscal Year Ended
June 30
Lease Revenue
Bonds
Subscription
Liabilities
Total
Government
Activities
Total Primary
Government
Percentage of
Personal
Income1
Per Capita
Debt2
2015 - - - - N/A -
2016 11,464,040 $ - $ 11,464,040 $ 11,464,040 $ 0.97% 579 2017 11,008,280 $ - $ 11,008,280 $ 11,008,280 $ 1.01% 561 2018 10,537,892 $ - $ 10,537,892 $ 10,537,892 $ 1.15% 536 2019 10,047,508 $ - $ 10,047,508 $ 10,047,508 $ 1.24% 506 2020 9,537,124 $ - $ 9,537,124 $ 9,537,124 $ 1.43% 486
2021 9,721,058 $ - $ 9,721,058 $ 9,721,058 $ 1.47% 500
2022 9,168,953 $ - $ 9,168,953 $ 9,168,953 $ 1.57% 478
2023 8,596,848 $ 91,969 $ 8,688,817 $ 8,688,817 $ 1.72% 452 2024 8,004,743 $ 21,395 $ 8,026,138 $ 8,026,138 $ 1.38% 420 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements 1 This ratio is calculated using the median household income for the prior calendar year. 2 This ratio is calculated using the population total as of January 1 of the calendar year.

Governmental Activities

CITY OF HERMOSA BEACH
Ratios of Outstanding Debt by Type
Last Ten Calendar Years
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Fiscal Year Ended
June 30
Lease Revenue
Bonds Total
Percent Assessed
Value1 Per Capita
2015 - - - -
2016 11,464,040 $ 11,464,040 $ 0.19% 579
2017 11,008,280 $ 11,008,280 $ 0.17% 561
2018 10,537,892 $ 10,537,892 $ 0.15% 536
2019 10,047,508 $ 10,047,508 $ 0.13% 506
2020 9,537,124 $ 9,537,124 $ 0.12% 486
2021 9,721,058 $ 9,721,058 $ 0.11% 500
2022 9,168,953 $ 9,168,953 $ 0.10% 478
2023 8,596,848 $ 8,596,848 $ 0.09% 452
2024 7,104,743 $ 7,104,743 $ 0.07% 372
1 Assessed value has been used because actual value of taxable property is not readily available in the State of California.

CITY OF HERMOSA BEACH
Ratios of General Bonded Debt Outstanding
Last Ten Calendar Years
Outstanding General Bonded Debt
(In thousands, except per capita)
Note: General bonded is debt payable with government fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
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Personal income Per capita City per capita Unemployment School Calendar Population (in thousands) personal income personal income rate enrollment Year (1) (2) (2) (3) (4) (5)
2015 19,772 499,767,889 49,400 - 3.1% 1,827
2016 19,801 544,324,900 53,521 - 2.2% 1,765
2017 19,616 563,907,868 55,624 - 1.9% 1,672
2018 19,673 593,741,110 58,419 - 2.2% 1,576
2019 19,847 628,808,732 62,224 - 2.2% 1,568
2020 19,614 653,482,910 65,094 - 10.2% 1,593
2021 19,451 678,829,092 68,272 - 7.0% 1,414
2022 19,171 728,772,915 74,141 - 3.2% 1,432
2023 19,018 720,740,528 74,142 - 3.2% 1,513
2024 19,088 756,659,481 78,302 - 3.6% 1,578
Source:
(1) State of California Department of Finance.
(2) U.S. Department of Commerce, Bureau of Economic Analysis (data shown is for Los Angeles County), which was last updated in 2023.
(3) Personal Income figures for 2008 are from the Internal Revenue Service individual income tax statistics by zip code and for Internal Revenue Service figures are not an ongoing statistical project therefore all years are not available. Census information is available every 10 years, however 2010 information is not yet available. (4) State of California Employment Development Department. (5) State of California Department of Education.

CITY OF HERMOSA BEACH
Demographic and Economic Statistics
Last Ten Calendar Years
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Number of Percent of total
Employer employees employment
City of Hermosa Beach 177 4.47%
Lazy Acres 2.91% 115
Von's 2.73% 108
Hermosa Beach School District 100 2.53%
Sunrise Assissted Living 98 2.48%
Trader Joe's 2.35% 93
Hennessey's Tavern 1.74% 69
Marlin Equity Partners 63 1.59%
The Beach House 1.54% 61
Hammitt Los Angeles 1.44% 57
Number of Percent of total
Employer employees employment
City of Hermosa Beach 170 4.26%
24 Hour Fitness 4.14% 165
Ralph's Grocery 2.63% 105
Sangira / American Junkie 101 2.53%
Hermosa Beach School District 90 2.26%
First Steps for Kids, Inc. 80 2.01%
Hennessey's Tavern 1.96% 78
Shorewoo Realtors, Inc. 77 1.93%
Abigaile & Ocean Bar 1.91% 76
Comedy & Magic Club 57 1.43%
Source: City of Hermosa Beach Administrative Services Department 2024
2015

CITY OF HERMOSA BEACH
Principal Employers
Current Year and Ten Years Ago
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Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General government 20 20 21 21 20 20 20 21 24 26
Public safety 81 82 76 63 1 64 1 65 1 71 1 57 1 61 1 62 1 Community development 8 10 11 12 11 12 12 10 12 13
Culture and recreation 3 4 4 4 4 4 4 3 6 6
Public works 17 23 23 21 20 22 22 26 27 34
Total 129 139 135 121 119 123 129 117 130 141
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General government 4 6 4 5 10 5 9 11 3 3
Public safety 6 14 5 3 1 3 1 2 1 1 1 2 1 6 1 3 1
Community development 3 2 3 2 4 3 2 1 - -
Culture and recreation 25 27 29 25 40 9 23 22 24 27
Public works 3 1 3 2 3 3 5 3 5 3
Total 41 50 44 37 60 22 40 39 38 36
Source: City of Hermosa Beach Finance Department
1 Beginning 12/30/17, Fire Services are now provided by Los Angeles Co. Fire Department.

CITY OF HERMOSA BEACH
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
Full-time employees as of June 30
Part-time employees as of June 30
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Public safety
Police:

Physical arrests 732 739 615 589 536 389 492 1,029 1,223 996 Traffic citations issued 2,406 1,966 1,826 1,408 1,154 498 629 1,838 1,843 2,287 Parking citations issued 65,783 62,957 56,398 57,206 66,029 66,029 59,861 44,907 46,526 43,307 Fire:

Number of emergency calls1 2,678 2,467 2,427 1,965 1,549 2,344 2,506 2,578 1,991 1,962 Inspections2 540 1,061 611 227 - - - - - -
Community development:

Building permits issued 509 622 488 519 460 431 977 3 414 3 596 3 622 3 Culture and recreation:

Number of recreation classes 514 526 498 617 422 431 598 662 702 636 Total enrollment 4,247 4,947 4,817 5,271 5,109 3,050 3,530 5,564 5,521 10,511 Public works:

Graffiti removal 209 200 112 201 4 148 4 49 4 36 4 19 4 17 4 35 4 Permits issued 904 1,406 1,496 1,617 1,615 2,717 3,482 4,971 2,342 809 Source: Various city departments.

Note:
1 Beginning 12/30/17, Fire Services are now provided by Los Angeles Co. Fire Department 2 Fire Department Inspections were done by the City from 7/1/17 through 12/29/17. As of 12/30/17, these inspections are no longer provided by the City.
3 A new software program was added to issue permits in the 2020-21 fiscal year. The software does not break down by type of permit issued at this time.
4 Beginning in 2017-18, Graffit removal reflects the number of services calls due to a change in reporting software. All prior fiscal years reflect graffiti removal hours.

Fiscal Year

CITY OF HERMOSA BEACH
Operating Indicators by Function
Last Ten Fiscal Years
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Public safety
Police:

Police stations 1111111111
Parking meters 1,553 1,553 1,557 1,558 1,558 1,558 1,558 1,570 1,599 1,599 Fire:

Fire stations 1111111111
Culture and recreation
Community centers 1111111111
Community theatres 1111111111
Public works:

Beach (acres) 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 Greenbelt (acres) 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 Parks 20 20 20 20 20 20 20 20 20 20
Parks (acres) 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 Sanitary sewers (miles) 40 40 40 40 40 40 37 37 37 37
Streets (miles) 40 40 40 40 40 40 40 40 40 40
Streetlights 400 400 400 400 400 400 400 400 400 400
Storm drains (miles) 2222222222
Traffic Signals 19 19 19 19 19 19 19 19 19 19
Infiltration (miles)2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Source: City of Hermosa Beach Finance Department
2 This is a system for monitoring the water quality before it reached the Pacific Ocean. The project was funded by a Federal ARRA Grant passed through the California State Water Control Board. Grant approval required the submission on an ongoing monitoring plan that was accepted by the grantor.

The project received an award from the American Public Works Association in 2010.

CITY OF HERMOSA BEACH
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
1 The City purchased 24 pay-by-space meters in fiscal year 2011. Fourteen of the machines are installed in City parking lots (which are reflected in this figure), with the remaing ten meters being returned for singled head meter for on-street parking.
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OTHER REPORTS
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438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
179
Honorable Mayor and City Council
City of Hermosa Beach
Hermosa Beach, California

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
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, the business-type activities, each major fund, and the aggregate remaining fund information of City of Hermosa Beach, California as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City of Hermosa Beach’s basic financial statements, and have issued our report thereon dated March 28, 2025.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Hermosa Beach's internal control over financial reporting (internal control) as a basis for designing the 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 City of Hermosa Beach’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Hermosa Beach’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified.

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180
Honorable Mayor and City Council
City of Hermosa Beach
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Hermosa Beach's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

Gruber and Lopez, Inc.

Newport Beach, California
March 28, 2025
Grube and Lopez, Inc.

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City of Hermosa Beach | Page 1 of 3
Meeting Date: April 8, 2025
Staff Report No. 25-AS-032
Honorable Mayor and Members of the Hermosa Beach City Council SIDE LETTER TO THE MANAGEMENT EMPLOYEES’ MEMORANDUM OF

UNDERSTANDING
(Human Resources Manager Tiffany Nguyen)
Recommended Action:

Staff recommends City Council approve the Resolution and Side Letter to the Management Employees’ Memorandum of Understanding (Attachment 1).

Executive Summary:

The City of Hermosa Beach periodically needs to amend a Memorandum of Understanding (MOU) to ensure the document continues to meet the needs of the City and its employees. In this case, the City was notified by CalPERS that additional clarification is required for Article 16 (Uniform Allowance) in the current Management Employees’ MOU for the purpose of calculating employee wages that are reported to CalPERS. The City met and conferred with the Management Employees on this addition and reached agreement.

Background:

The Meyers-Milias Brown Act (MMBA) mandates that local public agencies negotiate with their respective bargaining units on matters concerning wages, hours, and working conditions. The Current MOU for the affected Bargaining Unit is effective from July 1, 2022, through June 30, 2025.

The MMBA allows agencies and the recognized employee associations to make mutuallyagreed upon adjustments to the MOU through side letters. These side letters address emerging issues without altering the core provisions of the existing MOU, provided the MOU does not include a "zipper clause."1
Through labor negotiations, the City strives to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market ensuring the ability to retain and attract a high-quality workforce that delivers a wide range of services to the community. During the term of an MOU, the City may periodically implement

1 The Public Employment Relations Board defines a zipper clause as a clause in a collective bargaining agreement that permits both parties to refuse to bargain over changes to matters covered by the clause.

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City of Hermosa Beach | Page 2 of 3
organizational changes, add or remove classifications, or modify MOU provisions to address the evolving needs of Hermosa Beach.

Past Council Actions
Meeting Date Description
October 25, 2022 City Council approved the Memorandum of Understanding (MOU) between the City of Hermosa Beach and Management
Employees for the 2022–2025 fiscal years.

September 10, 2024 City Council approved an amendment to the Management Employees’ MOU, reflecting changes to certain
classifications represented by the Management Employee
Group.

Discussion:

The current Article 16—Uniform Allowance of the Management Employee Group MOU reads as follows:

The Police Chief and Fire Chief shall be compensated the same uniform allowance as the next subordinate rank in their respective Department.

The tentative Side Letter approving modifications to Article 16—Uniform Allowance to read as follows:

These items are not reportable for “new members” under the Public Employees’ Pension Reform Act of 2013 (PEPRA), as defined by Government Code Section 7522.04(f).

Environmental Review:

This side letter to amend the Management MOU is not a “project” subject CEQA” because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, § 15378(a).) In the alternative, the side letter falls within the “common sense” exemption set forth in State CEQA Guidelines section 15061(b)(3), which exempts activity from CEQA where “it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.”

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City of Hermosa Beach | Page 3 of 3
General Plan Consistency:

This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

Governance Element
Goal 1. A high degree of transparency and integrity in the decision-making process.

Policy:
 1.2 Strategic planning. Regularly discuss and set priorities at the City Council and management level to prioritize work programs and staffing needs.

Fiscal Impact:

There is no fiscal impact associated with the recommended action.

Attachment:

Resolution and Side Letter to the Management Employees’ Memorandum of Understanding
Respectfully Submitted by: Tiffany Nguyen, Human Resources Manager Concur: Brandon Walker, Administrative Services Director Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Legal Review: Patrick Donegan, City Attorney
Reviewed by: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

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CITY OF HERMOSA BEACH
RESOLUTION NO. XX-XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, ADOPTING A SIDE LETTER TO THE

MEMORANDUM OF UNDERSTANDING WITH THE MANAGEMENT
EMPLOYEE GROUP.

WHEREAS, employees of the City of Hermosa Beach, California represented by the Management Employee Group, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and, WHEREAS, the Employee Association and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding; and, WHEREAS, the Employee Association and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council of the City of Hermosa Beach has a Memorandum of Understanding for the period July 1, 2022, through and including June 30, 2025.

SECTION 2. The City of Hermosa and the Management Employee Group desire to enter into a Side Letter to amend the Memorandum of Understanding for the period July 1, 2022, through and including June 30, 2025, as shown on Exhibit A.

SECTION 3. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.

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PASSED, APPROVED and ADOPTED on this 8
th day of April, 2025.

Dean Francois
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Patrick Donegan
City Clerk City Attorney

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EXHIBIT A

SIDE LETTER AGREEMENT BETWEEN

THE CITY OF HERMOSA BEACH
AND

MANAGEMENT EMPLOYEE GROUP
Whereas, the City of Hermosa (“City”) and the Management Employee Group (“Union”) are parties to a Memorandum of Understanding dated July 1, 2022 – June 30, 2025 (“MOU”);
Whereas, following the adoption of the executed MOU, the City recognized that clarification is required to the terms in MOU Article 16 (Uniform Allowance), which necessitated changes to the MOU language.

Whereas, the parties met and conferred on the proposed changes and the Management Employee Group agreed to the changes on April 1, 2025.

Now, therefore, having met and conferred in good faith, the City and Union agree to the following changes:

1. Amend Article 16 – Uniform Allowance to indicate the following:

Effective July 1, 2022, the uniform allowance for the Police Chief shall be $1,000 per year, payable through the regular payroll schedule. Uniform allowance shall be reported to CalPERS periodically, when earned, on a per day basis, in accordance with the Public Employee’s Retirement Law (PERL) and applicable regulations. These items are not reportable for “new members” under the Public Employees’ Pension Reform Act of 2013 (PEPRA), as defined by Government Code Section 7522.04(f).

All other Articles, provisions, Sections, and Exhibits of the MOU not modified herein shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto cause this Side Letter Agreement to be effective this 8
th day of April, 2025.

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MANAGEMENT EMPLOYEE GROUP CITY OF HERMOSA BEACH
________________________________ _________________________________ Brandon Walker,
Administrative Services Director
Suja Lowenthal, City Manager
________________________________ _________________________________ Angela Crespi, Deputy City Manager Tiffany Nguyen, Human Resources Manager
_________________________________
Lisa Nichols, Community Resources
Director
_________________________________
Paul LeBaron, Chief of Police
___________________________________
Joseph SanClemente, Public Works
Director
__________________________________
Myra Maravilla, City Clerk

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City of Hermosa Beach | Page 1 of 1
Meeting Date: April 8, 2025
Staff Report No. 25-CR-033
Honorable Mayor and Members of the Hermosa Beach City Council

ACTION MINUTES OF THE PARKS, RECREATION, AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF MARCH 4, 2025
(Community Resources Director Lisa Nichols)
Recommended Action:

Staff recommends City Council receive and file the action minutes of the Parks, Recreation, and Community Resources Advisory Commission meeting of March 4, 2025.

Attachment:

Action Minutes of the March 4, 2025 Parks, Recreation, and Community Resources Advisory Commission Meeting
Respectfully Submitted by: Lisa Nichols, Community Resources Director Reviewed by: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

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1 CITY OF HERMOSA BEACH
Parks, Recreation, and Community Resources Advisory
Commission
Meeting Minutes
March 4, 2025, 7:00 PM
Council Chambers
1315 Valley Drive
Hermosa Beach, CA 90254
Members Present: Chairperson Jani Lange, Vice Chairperson Lauren Pizer Mains, Commissioner Barbara Ellman, Commissioner Thomas
Moroney, Commissioner Traci Horowitz
_____________________________________________________________________

1. CALL TO ORDER
Chairperson Lange called the Open Session to order at 7:00 p.m.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Chairperson Lange.

3. ROLL CALL
Office Assistant Kalyn Kaemerle announced a quorum.

4. ANNOUNCEMENTS—UPCOMING CITY EVENTS
Community Resources Director Lisa Nichols gave a presentation.

5. PRESENTATIONS

6. COMMUNITY RESOURCES DIRECTOR REPORT
Community Resources Director Lisa Nichols gave the report.

7. PUBLIC COMMENT
Coming forward to address the Commission at this time:

Mark Paaluhi, Hermosa Beach resident
Gail Rose, Hermosa Beach resident

8. COMMISSIONER COMMENTS

9. CONSENT CALENDAR

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2 Moved by: Commissioner Barbara Ellman
Seconded by: Commissioner Traci Horowitz
To approve the Consent Calendar.

Ayes (5): Chairperson Jani Lange, Vice Chairperson Lauren Pizer Mains, Commissioner Barbara Ellman, Commissioner Thomas Moroney, and Commissioner Traci Horowitz
Motion Carried

9.a ACTION MINUTES OF THE REGULAR MEETING OF FEBRUARY 4, 2025

9.b JANUARY 2025 ACTIVITY REPORT

10. PUBLIC HEARINGS

10.a APPROVAL OF IMPACT LEVEL III NEW 2025 SPECIAL EVENT - 25- CR-020
Moved by: Commissioner Thomas Moroney
Seconded by: Commissioner Traci Horowitz
To continue the discussion of this item to the April 1st Parks, Recreation, and Community Resources Advisory Commission meeting:
• The inclusion of Impact Level III new special event, the Los Angeles (LA) Kings Smartwater and Coca Cola Zero Hydration Zone south of the Pier on Monday, September 15, 2025, through Wednesday, September 24, 2025, on the 2025 Special Events Calendar; and
• Exemptions to the Special Event Policy Guide (Attachment 1) to exceed the monthly event day limit in September and daily special event limit on Saturday, September 20, 2025.

Ayes (5): Chairperson Jani Lange, Vice Chairperson Lauren Pizer Mains, Commissioner Barbara Ellman, Commissioner Thomas Moroney, and Commissioner Traci Horowitz
Motion Carried

11. MATTERS FOR COMMISSION CONSIDERATION

11.a CONSIDERATION OF THE REQUEST TO RENAME THE GREENBELT

PEDESTRIAN TRAIL IN HONOR OF GEOFF HIRSCH AND CASEY

ROHRER AND THE SOUTH PARK ACCESSIBLE PLAYGROUND IN
HONOR OF CASEY ROHRER - 25-CR-024
Public Comment:

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3 Moved by: Commissioner Traci Horowitz
Seconded by: Commissioner Barbara Ellman
To receive and file the Greenbelt Pedestrian Trail and South Park Accessible Playground Renaming Subcommittee Report (Attachment 1) and recommend to City Council with the amendment to add additional clarification to the resolution that the Green Pedestrian Trail runs from Pier Avenue to 8th Street:

1. The adoption of a resolution of the City of Hermosa Beach, California, renaming the Greenbelt Pedestrian Trail in honor of Casey Rohrer and Geoff Hirsch (Attachment 2);

2. The adoption of a resolution of the City of Hermosa Beach, California, renaming the South Park Accessible Playground in honor of Casey Rohrer (Attachment 3);

3. Approval of the installation of a bench and plaque on the Greenbelt Pedestrian Trail acknowledging the naming;

4. Approval of the installation of a plaque on an existing bench near the South Park Accessible Playground acknowledging the naming.

Ayes (5): Chairperson Jani Lange, Vice Chairperson Lauren Pizer Mains, Commissioner Barbara Ellman, Commissioner Thomas Moroney, and Commissioner Traci Horowitz
Motion Carried

12. FUTURE AGENDA ITEMS

13. PUBLIC COMMENT

14. ADJOURNMENT
The meeting was adjourned at 8:50p.m.

Chair City Clerk

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City of Hermosa Beach | Page 1 of 4
Meeting Date: April 8, 2025
Staff Report No. 25-CMO-026
Honorable Mayor and Members of the Hermosa Beach City Council

APPROVE AN AMENDMENT TO MEMORANDUM OF UNDERSTANDING BETWEEN

THE BEACH CITIES WATERSHED MANAGEMENT GROUP FOR IMPLEMENTATION

OF THE COORDINATED INTEGRATED MONITORING PROGRAM (CIMP) (Environmental Programs Manager Douglas Krauss)
Recommended Action:

Staff recommends City Council:

1. Approve an amendment to a Memorandum of Understanding (MOU) regarding the Administration and Cost Sharing for Coordination and Implementation of the Coordinated Integrated Monitoring Program (CIMP) for the Beach Cities Watershed Management Group (WMG) (Attachment 1) to extend the term of the agreement through December 31, 2026, with the option to further extend the term in increments of one calendar year at a time, up to two additional years; and

2. Authorize the Mayor to execute and the City Clerk to attest to the proposed amendment, subject to approval by the City Attorney.

Executive Summary:

Since 2016, the WMG has collaboratively implemented the CIMP with Manhattan Beach serving as lead. The CIMP utilizes a professional firm to perform the sampling and testing of water quality and a separate firm to administer the program and various WMG reporting and programs. The current agreement is set to expire on December 28, 2025 and WMG agencies discussed an extension of the MOU to ensure monitoring services continue and so that the WMG can respond to the Regional Water Quality Control Board’s (Regional Board) new monitoring requirements.

Background:

The cities of Hermosa Beach, Torrance, Redondo Beach, Manhattan Beach and the Los Angeles County Flood Control District formed the WMG to develop a Watershed Management Program (WMP) to comply with the Regional Board’s 2012 National Pollutant Discharge Elimination System Municipal Separate Storm Sewer System Permit (MS4 Permit). The Beach Cities WMG entered into an MOU to cost share the development of the WMP and CIMP in 2013.

The MS4 Permit requirements include a monitoring and reporting program applicable to City of Hermosa Beach and the other parties to the CIMP MOU. The monitoring program

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City of Hermosa Beach | Page 2 of 4
requirements described in the MS4 Permit provide flexibility for Permittees to coordinate monitoring efforts on a watershed or subwatershed basis to increase cost-efficiency and effectiveness and to align the CIMP with the WMP.

Upon approval of the WMP and CIMP by the Regional Board in 2016, the Beach Cities Group executed an MOU for the joint implementation of the CIMP in order to carry out the monitoring and reporting program requirements of the Permit (Attachment 2). The CIMP MOU also included regular administration of the WMP and coordination of the member agencies for meetings and regular communications.

The proposed amendment to the existing CIMP MOU would ensure implementation and WMP administration for the WMG. At its February 9, 2016 meeting, City Council approved the an MOU to implement a CIMP with the Beach Cities WMG (Attachment 2). At its December 8, 2020 meeting, Council approved execution of amendment one (Attachment 3) extending the term through December 28, 2025. A separate MOU for a comprehensive update of the WMP was approved by Council at its October 27, 2020 meeting (Attachment 4).

Past Council Actions
Meeting Date Description
November 26, 2013 City Council approved an MOU to develop a WMP with the Beach Cities WMG
February 9, 2016 City Council approved an MOU to implement a CIMP with the Beach Cities WMG
December 8, 2020 City Council approved an MOU to amend and extend the MOU for monitoring services related to the CIMP
October 27, 2020 City Council approved an MOU for WMP implementation with the Beach Cities WMG
Discussion:

The CIMP Implementation MOU provides for the hiring of a:
• CIMP Implementation Consultant to accomplish the CIMP; and • CIMP Coordination Consultant to assist the WMG in watershed planning and coordination.

The CIMP MOU further provides that the parties to the MOU contribute funds to the City of Manhattan Beach, which acts on behalf of the Beach Cities WMG (or Parties) to contract with the respective CIMP Coordination consultant and CIMP Implementation consultant. The City of Manhattan Beach contracts for these services with McGowan Consulting (Coordination) and Geosyntec (Implementation). Each firm served in these

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City of Hermosa Beach | Page 3 of 4
capacities for the Beach Cities WMG since 2016. Their familiarity with the WMG’s WMP and CIMP makes them ideal consultants to continue performing these professional services and the City of Manhattan Beach staff secured approval from its City Council to proceed with the MOU amendment.

The City’s cost for the additional year is estimated at $37,201. The cost for the previous year was $24,791. The cost increase is due to a number of new monitoring requirements which were recently implemented including a requirement for higher resolution testing of storm water samples. The increase also reflects the WMG’s supplementary efforts to gain approval from the Regional Board for its updated CIMP, a compliance time extension order completing, and an adaptive management process for waste discharge monitoring.

These additional costs are split proportionally between the various member agencies, as shown in the draft amendment. The City of Manhattan Beach’s fee for administering the contracts would be 10 percent.

Staff recommends City Council approve the amendment to allow for an extension of the agreement. If approved, the extension would allow the WMG to continue required monitoring activities and other efforts to meet Regional Board requirements.

ENVIRONMENTAL REVIEW:

The proposed action does not constitute a project under the California Environmental Quality Act under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.

General Plan Consistency:

This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policy is listed below:

Infrastructure Element
Goal 5. The stormwater management system is safe, sanitary, and environmentally and fiscally sustainable.

Policy:

5.7 Stormwater permits. Strictly implement, enforce, and monitor MS4 National Pollutant Discharge Elimination Systems (NPDES) Permit requirements through stormwater ordinances.

Fiscal Impact:

The City’s cost share for the 2026 MOU extension is estimated to be $37,201. The final amount may change depending on actual consultant labor costs. Sufficient Storm Drain funds would be budgeted for the cost share.

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City of Hermosa Beach | Page 4 of 4
Since the 2026 MOU extension would start in Fiscal Year 2025–26, the MOU would be budgeted as part of the Fiscal Year 2025–26 budget.

Attachments:

1. Draft Amendment

2. 2016 CIMP MOU

3. Current CIMP MOU

4. WMP Update MOU
Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Legal Review: Pat Donegan, City Attorney
Concur: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

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AMENDMENT NO. 2 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN

THE CITY OF MANHATTAN BEACH, THE CITY OF TORRANCE, THE CITY OF REDONDO BEACH, THE

CITY OF HERMOSA BEACH, AND THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT

REGARDING THE ADMINISTRATION AND COST SHARING FOR COORDINATION AND

IMPLEMENTATION OF THE COORDINATED INTEGRATED MONITORING PROGRAM (CIMP) FOR THE

BEACH CITIES WATERSHED MANAGEMENT GROUP
This Second Amendment (Amendment No. 2) to that certain Memorandum of Understanding (MOU) by and between the CITY OF MANHATTAN BEACH, a California municipal corporation, the CITY OF TORRANCE, a California municipal corporation, the CITY OF REDONDO BEACH, a chartered municipal corporation, the CITY OF HERMOSA BEACH, a California municipal corporation, and THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT (LACFCD), a body corporate and politic, collectively known as the “PARTIES” or individually as “PARTY”, is hereby entered into as of July 1, 2025 (“Effective Date”).

WITNESSETH
WHEREAS, on April 12, 2016, the PARTIES entered into an MOU to cooperatively fund CIMP coordination and CIMP implementation and to coordinate the payment and performance of CIMP coordination and reporting services and CIMP monitoring and reporting services; and WHEREAS, the term of the MOU was extended for two additional years by the unanimous written concurrence of all PARTIES; and
WHEREAS, a first amendment (Amendment No. 1) to the MOU was executed and became effective on July 1, 2020, extending the term of the MOU through December 31, 2023, with two optional one-year extensions; and
WHEREAS the term of Amendment No. 1 was extended for two additional years by the unanimous written concurrence of all PARTIES and will expire on December 28, 2025, unless hereby amended; and
WHEREAS, the MS4 Permit was reissued as Order No. R4-2021-0105 for the Coastal Watersheds of Los Angeles and Ventura Counties and became effective on September 11, 2021, and requires that the LACFCD, the County of Los Angeles and 85 incorporated cities of Los Angeles County, along with the Ventura County Watershed Protection District, County of Ventura, and 10 incorporated cities within Ventura County (Permittees), comply with the prescribed elements of the MS4 Permit; and
WHEREAS, on March 13, 2023, the PARTIES prepared and submitted a revised CIMP for review and approval by the REGIONAL BOARD in accordance with the MS4 Permit; and

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WHEREAS, the PARTIES are required to continue to implement the existing CIMP until the revised CIMP has been approved by the REGIONAL BOARD; and WHEREAS, upon approval of the revised CIMP by the REGIONAL BOARD, the PARTIES are required to begin implementation of the revised CIMP immediately unless otherwise directed by the REGIONAL BOARD; and
WHEREAS, an updated Beach Cities Watershed Management Program (WMP) was prepared by the PARTIES using CIMP monitoring data collected through June 30, 2020, and submitted to the REGIONAL BOARD in June 2021; and
WHEREAS, the MS4 Permit requires the PARTIES to prepare and submit a Report of Waste Discharge to the Los Angeles Water Board by March 11, 2026, which is required to include the results of an adaptive management process through comprehensive evaluation of CIMP outfall and receiving water monitoring data collected since the last revision of the WMP to evaluate the effectiveness of implemented control measures in improving water quality; and WHEREAS, the PARTIES have agreed that the total costs for coordination and implementation of the CIMP shall include a ten percent (10%) contract administration cost and a ten percent (10%) contingency; and
WHEREAS, the PARTIES now desire to amend the MOU to incorporate additional services to the Scope of Services, authorize increased costs, and extend the term.

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NOW, THEREFORE, in consideration of the mutual benefits to be derived by the PARTIES, and of the promises contained in this MOU, the PARTIES agree as follows:

Section 1. Section 5 of the MOU is hereby revised to extend the term of the MOU through December 31, 2026, with the option to further extend the term in increments of one calendar year at a time, up to two additional years, by unanimous written concurrence of all PARTIES. If the MOU term is further extended, the total annual cost to the PARTIES under this MOU for each extension year shall not exceed Fiscal Year 2025-26 costs as estimated in Table 1 of Exhibit A, adjusted February to February by the Consumer Price Index, Urban Wage Earners and Clerical Workers’ for Los Angeles County per cost of living adjustment. Upon unanimous written concurrence of all PARTIES, the term of the MOU shall be automatically extended.

Section 2. Section 7a. LACFCD Contribution to CIMP Implementation is hereby revised to read, "To contribute 5% of the CIMP Implementation costs (including a 10% contingency and 10% administrative fee) in accordance with the cost allocation formula set forth in Table 2 of Exhibit A."
Section 3. Section 8a of the MOU is hereby revised to reflect the Administration Cost of 10% of the CIMP Implementation Subtotal paid by the PARTIES to the CITY OF MANHATTAN BEACH consistent with Table 1 of Exhibit A.

Section 4. EXHIBIT A to the MOU (Beach Cities Watershed Funding Contributions for CIMP Implementation and Coordination), is hereby replaced by EXHIBIT A to this Amendment No. 2.

Section 5. EXHIBIT B to the MOU (Beach Cities Watershed Management Group Responsible Agencies’ Representatives), is hereby replaced by EXHIBIT B to this Amendment No. 2.

Section 6. EXHIBIT C to the MOU (CIMP Implementation Scope of Services), is hereby amended to add the Scope of Services attached to this Amendment No. 2 as EXHIBIT C.

Section 7. EXHIBIT D to the MOU (CIMP Coordination Scope of Services) is hereby replaced by EXHIBIT D to this Amendment No. 2.

IN WITNESS WHEREOF, the PARTIES hereto have caused this Amendment No. 2 to be executed by their duly authorized representatives and affixed as of the date of signature of the PARTIES:
[SIGNATURE PAGES FOLLOW]

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LOS ANGELES COUNTY FLOOD CONTROL DISTRICT
By: Date:

MARK PESTRELLA
Chief Engineer
APPROVED AS TO FORM:

MARY C. WICKHAM
Interim County Counsel
By:

Deputy

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CITY OF MANHATTAN BEACH
By: Date:

Talyn Mirzakhanian
City Manager
ATTEST:

By:

Liz Tamura
City Clerk
APPROVED AS TO FORM:

By:

Quinn M. Barrow
City Attorney

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CITY OF TORRANCE
By: Date:

George K. Chen
Mayor
ATTEST:

By:

Rebecca Poirier
City Clerk
APPROVED AS TO FORM:

By:

Patrick Sullivan
City Attorney

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CITY OF REDONDO BEACH
By: Date:

Jim Light
Mayor
ATTEST:

By:

Eleanor Manzano
City Clerk
APPROVED AS TO FORM:

By:

Mike Webb
City Attorney

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CITY OF HERMOSA BEACH
By: Date:

Dean Francois
Mayor
ATTEST:

By:

Myra Maravilla
City Clerk
APPROVED AS TO FORM:

By:

Patrick Donegan
City Attorney

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EXHIBIT A
Beach Cities Watershed
Funding Contributions for CIMP Implementation and Coordination Table 1. CIMP Implementation and Coordination Total Costs Task
#(a) Description FY 25/26 Cost
1 Project Management,
Communications, Meetings $
2 Health and Safety Plan/Traffic Control
Plan/Permits $
3 Receiving Water Monitoring $
4 Stormwater Outfall Monitoring $
5 Non-Stormwater Outfall Monitoring $
6 Data Assessment and Reporting $
7(b) CIMP Coordination $
CIMP Implementation Subtotal $
Administrative Cost(d) $
Contingency Factor 1.1
CIMP Implementation Total Cost $
LACFCD Allocation (5%)(e) $
Total Cost (to be distributed among
remaining agencies)
(f)(g) $
(a) Except where noted, “Task #” refers to the CIMP Implementation Consultant’s scope of work. (b) CIMP Coordination costs based on Task 7 of the executed contract between The City of Manhattan Beach and McGowan Consulting.
(c) Costs may increase annually by CPI, subject to written agreement by all parties to this MOU. (d) Administrative costs are 10% of the CIMP Implementation Subtotal (e) LACFCD allocation is 5% of the CIMP Implementation Total Cost (f) Total Cost to be distributed among remaining agencies includes CIMP Implementation Total Cost less LACFCD allocation
(g) Remaining agencies include the Cities of Manhattan Beach, Redondo Beach, Hermosa Beach, and Torrance

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Table 2. Distributed Total Costs(a)
Participating Agency
Area Distributed
Total Cost
Total CIMP Area % of Total CIMP Area FY2526
City of Redondo Beach 3,831 25.2% $
City of Manhattan Beach 2,428 15.9% $
City of Hermosa Beach 832 5.5% $
City of Torrance 8,126 53.4% $
LACFCD(b) N/A N/A $
Total 15,217 100% $
(a) Distributed Total Cost is based on percentage of CIMP area and includes CIMP Implementation Total Cost (including contingency and administration) less LACFCD for all agencies except LACFCD. (b) LACFCD allocation is 5% of the CIMP Implementation Total Cost (including contingency and administration).

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EXHIBIT B

BEACH CITIES WATERSHED MANAGEMENT GROUP
Responsible Agencies’ Representatives
1 City of Redondo Beach
Department of Public Works,
Engineering Division
415 Diamond Street
Redondo Beach, CA 90266
Geraldine Trivedi
E-mail: [email protected]
Phone: (310) 318-0661 x2036
Fax: (310) 374-4828
2 City of Hermosa Beach
Department of Public Works
1315 Valley Drive
Hermosa Beach, CA 90254
Doug Krauss
E-mail: [email protected]
Phone: (310) 318-0603
Fax: (310) 372-6186
3 City of Manhattan Beach
Department of Public Works
1400 Highland Avenue
Manhattan Beach, CA 90266
Jeff Page
E-mail: [email protected]
Phone: (310) 802-5320
Fax: (310) 802-5314
4 City of Torrance
Department of Public Works
20500 Madronna Avenue
Torrance, CA 90503
Wilson Mendoza
E-mail: [email protected]
Phone: (310) 618-3052
Fax: (310) 781-6902
5 Los Angeles County Flood Control District
Department of Public Works
Watershed Management Division, 11th Floor
900 South Fremont Avenue
Alhambra, CA 91803
Angela George
E-mail: [email protected]
Phone: (626) 458-4300
Fax: (626) 457-1526

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EXHIBIT C

BEACH CITIES WATERSHED MANAGEMENT GROUP

CIMP IMPLEMENTATION SCOPE OF SERVICES

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EXHIBIT D

BEACH CITIES WATERSHED MANAGEMENT GROUP

CIMP COORDINATION SCOPE OF SERVICES

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Table 1: CIMP Implementation Cost
Task # Description FY2526
1 Project Management $ 51,700
2 Receiving Water Monitoring $ 141,400
3 Stormwater Outfall Monitoring $ 104,600
4 Non-stormwater Outfall Monitoring $ 30,400
5 Data Assessment and Reporting $ 141,800
Subtotal Tasks 1-5 $ 469,900
6 CIMP Watershed Coordination $ 118,510
Total CIMP Implementation Subtotal $ 588,410
10% Contingency $ 58,841
10% Administrative Cost $ 64,725
CIMP Implementation Total Cost $ 711,976
LACFCD Allocation (5%) $ 35,599
Total Cost to be Distributed Amongst Beach Cities Agencies $ 676,377 TABLE 2: COST ALLOCATION FOR CIMP IMPLEMENTATION FY2526 Participating Agency Santa Monica
Bay Watershed
Dominguez Channel
Watershed
Total CIMP
Area
% of Total
CIMP Area
Total FY2526
Cost
City of Redondo Beach 2614 1217 3831 25.2% $ 170,447
City of Manhattan Beach 2078 350 2428 15.9% $ 107,544
City of Hermosa Beach 832 0 832 5.5% $ 37,201
City of Torrance 2314 5812 8126 53.4% $ 361,185
Total 7838 7379 15217 100.0%

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AMENDMENT NO. 1 TO THE MEMORANDUM OF UNDERSTANDING

BETWEEN

THE CITY OF MANHATTAN BEACH, THE CITY OF TORRANCE, THE CITY OF REDONDO BEACH, THE

CITY OF HERMOSA BEACH, AND THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT

REGARDING THE ADMINISTRATION AND COST SHARING FOR COORDINATION AND

IMPLEMENTATION OF THE COORDINATED INTEGRATED MONITORING PROGRAM (CIMP)

FOR THE BEACH CITIES WATERSHED MANAGEMENT GROUP
This First Amendment ("Amendment No. I") to that certain Memorandum of Understanding (MOU) by and between the CITY OF MANHATTAN BEACH, a California municipal corporation, the CITY OF TORRANCE, a California municipal corporation, the CITY OF REDONDO BEACH, a chartered municipal corporation, the CITY OF HERMOSA BEACH, a California municipal corporation, and THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT (LACFCD), a body corporate and politic, collectively known as the "PARTIES" or individually as "PARTY", is herebyentered into as of July 1, 2020 ("Effective Date").

W1TNESSETH
WHEREAS, on April 12, 2016 the PARTIES entered into an MOU to cooperatively fund CIMP coordination and CIMP implementation and to coordinate the payment and performance of CIMP coordination and reporting services and CIMP monitoring and reporting services; and WHEREAS, the term of the MOD was extended fortwo additional years by the unanimous written concurrence of all PARTIES and will expire on December 28, 2020 unless herebyamended;and WHEREAS, the MS4 Permit became effective on December 28, 2012, and requires that the LACFCD, the County of Los Angeles, and 84 of the 88 cities (excluding Avalon, Long Beach, Palmdale, and Lancaster) within Los Angeles County comply with the prescribed elements of the MS4 Permit until the next MS4 Permit becomes effective; and WHEREAS, next MS4 Permit, anticipated fo be adopted bythe Los Angeles Regional Water Quality Control Board (REGIONAL BOARD), may require that the PARTIES prepare and submit a revised CIMP for review and approval by the REGIONAL BOARD; and WHEREAS, the next MS4 Permit may require that the PARTIES continue with the existing CIMP Implementation until a revised CIMP has been approved by the REGIONAL BOARD; and WHEREAS, the PARTIES now desire to amend the MOD to add additional services to the Scope of Services, authorize increased costs, and extend the term. <r>
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NOW, THEREFORE, in consideration of the mutual benefits to be derived by the PARTIES, and of the promises contained in this MOD, the PARTIES agree as follows:

Section 1. Section 5 of the MOD is hereby revised to extend the term of the MOD throughDecember 31, 2023 with the option to further extend the term in increments of one calendar year at a time, up to two additional years, by unanimous written concurrence of all PARTIES. Ifthe MOU term is further extended,the total annual cost to the PARTIES under this MOD for each extension year shall not exceed Fiscal Year 2022-2023 costs as estimated in Table 1 of Exhibit A,adjusted April to April by the Consumer Price Index, Urban Wage Earners and Clerical Workers' for Los Angeles County per cost of living adjustment. Upon unanimous written concurrence of all PARTIES, the term of the MOU shall be automatically extended.Section 2. The Parties acknowledge and agree that the funds previously paid to the CITY OF MANHATTAN BEACH pursuant to Section 8.a of the MOU have resulted in a surplus (the "AccountSurplus"). Commencingwiththe invoice of July 1, 2020, each Party shall be credited a percentageshare of the Account Surplus towards payment of that invoice and all future invoices for services performed pursuant to this MOD, until the Account Surplus is eliminated. The percentage share for calculating each City Party's credit shall be that set forth in Table 2 of Exhibit A as the "% of Total CIMPArea", less a proportionate share of the 5% to be paid to LACFCD.Section 3. EXHIBIT A to the MOU (Beach Cities Watershed Funding Contributions for CIMP Implementation and Coordination), is hereby replaced by EXHIBIT A to this Amendment No. 1.

Section 4. EXHIBIT B to the MOU (Beach Cities Watershed Management Group Responsible Agencies' Representatives), is hereby replaced by EXHIBIT B to this Amendment No. 1 Section 5. EXHIBIT C to the MOD (CIMP Implementation Scope of Services), is hereby amended to add the Scope of Services attached to this Amendment No.1 as EXHIBIT C Section 6. EXHIBIT D to the MOU (CIMP Coordination Scope of Services) is hereby replaced by EXHIBIT D to this Amendment No. 1.

Section 7. Except as specifically amended by this Amendment No. 1, all other provisions of theAgreement shall remain in full force and effect.

IN WITNESS WHEREOF, the PARTIES hereto have caused this Amendment No. 1 to be executed by their duly authorized representatives and affixed as of the date of signature of the PARTIES:
[SIGNATURE PAGES FOLLOW]

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LOS ANGELES COUNTY FLOOD CONTROL DISTRICT
By:
1-
^L---^-^\^<
^>JS MARK PEST
^
LA ef En ine r
Date:)^-/^^/^0
APPROVED AS TO FORM:RODRIGO A. CASTRO-SILVA
Acting County CounselBy: Mz^^'a^t^uDeputy y

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CITY OF MANHATTAN BEACH
By:. Date: 3-^-S-I
B^jce MoeCity Manager
ATTEST:

By: -tVi At^Ltf^ Q^AA^L-yi 3/2f 2DZ |
ft/LizTamura
City Clerk
APPROVED AS TO FORM:

BV
M. Barrow
City Attorney

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CITY OF TORRANCE
re
By:.

Patrick J.F
Mayor
ATTEST:

Date: ^/(7/zozo
By:^£
'RebeccA-E^irier
City Clerk
APPROVED AS TO FORM:

By:-^Z^^^t^
t^-fatrick Sullivan
City Attorney

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CITY OF REDONDO BEACH
By: /^~ .^L^^
Bill Brand
Mayor
ATTEST:

By:

Eleanor Manzano
City Clerk
APPROVED AS TO FORM:

Date: .^-^/
By:, /^J^/ CJ.L^
Michael W. Webb
City Attorney

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CITY OF HERMOSA BEACH
By: / -^
/ Justin Massey^- /Mayor
ATTEST:

By:
^^^-^
Eduardo Sarmiento
City Clerk
v
Date: //^ 7/^o^/
~1 T
APPROVED AS TO FORM:

By:^
Tvii^Fiaei Jen kinsCity Attorney
.<

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EXHIBIT A
Beach Cities Watershed
Funding Contributions for CIMP Implementation and Coordination Table 1. CIMP Implementation and Coordination Total Costs Task
•8(al Description
FY 20/21
Cost
FY 21/22
Cost
1 Project Management, Communications, Meetings $48,504 $48,504 2 Health and Safety Plan/Traffic Control Plan/Permits $10,296 $12,132 3 Receiving Water Monitoring
4 Stormwater Outfall Monitoring5 Non-Stormwater Outfall Monitoring | $36,420 | $36,420 | $66,940 6 Data Assessment and Reporting
7(b)
(a)(b)
(c)
(d)
(e)(f)
(g)
CIMP Coordination
CIMP implementation Subtotal
Administrative Cost'111
Contingency Factor 1.1 1.1
CIMP Implementation Total Cost
LACFCD Allocation (5%)<el
Total Cost (to be distributed among
remaining agencies)lfife) ; $473,369 $472,847
FY 22/23
Cost
$48,504
$0
$80,324 | $80,324 | $110,324$67,692 | $67,692 [ $73,692 $69,378 | $69,378 | $91,462$99,190 | $96,900C) | $99,790l(c) $411,804 | $411,350 | $490,712
$45,298 | $45,249 | $53,978

1.1 $498,283 I $497,734 | $593,762
," i<
$564,073
Except where noted, "Task #" refers to the CIMP Implementation Consultant's scope of work.

CIMP Coordination costs based on Task 7 of the executed contract between The City of Manhattan Beachand McGowan Consulting.Costs may increase annually byCPI, subject to written agreement by all parties to this MOD.

Administrative costs are 10% of the CIMP Implementation SubtotalLACFCD allocation is 5% of the CIMP Implementation Total Cost Total Cost to be distributed among remaining agencies includes CIMP Implementation Total Cost less LACFCD allocation
Remaining agencies include the Cities of Manhattan Beach, Redondo Beach, hlermosa Beach, and Torrance

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Table 2. Distributed Total Costs(a>
Participating Agency
Area Distributed Total Cost
Total GIMP Area % of Total CIMPArea FY2021 FY2122 FY2223 City of Redondo Beach 3,831 25.2% $119,289 | $119,157 | $142,147 City of Manhattan Beach 2,428 15.9% $75,266 | $75,183 | $89,688 City of Hermosa Beach 832 5.5% $26,035 | $26,007 ] $31,024 CityofTorrance 8,126 53.4% $252,035 | $252,500 | $301,215iACFCD!b) N/A N/A $24,914 $24,887 $29,688 Total 15,217 100% . $498,283 $497,734 $593,762
(a) Distributed Total Cost is based on percentage of CtMP area and includes CIMP Implementation Total Cost (including contingency and administration) less LACFCD for all agencies except LACFCD. (b) LACFCD allocation is 5% of the CIMP Implementation Total Cost (including contingency and administration). '•

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EXHIBIT B

BEACH CITIES WATERSHED MANAGEMENT GROUP
Responsible Agencies' Representatives
1 City of Redondo Beach
Department of Public Works,Engineering Division415 Diamond StreetRedondo Beach, CA 90266 GeraldineTrivediE-mail: [email protected]: (310) 318-0661 x2036Fax: (310) 374-4828 2 City of Hermosa Beach
Department of Public Works1315 Valley DriveHermosa Beach, CA 90254 Doug KraussE-mail: [email protected]: (310) 318-0603Fax: (310) 372-6186 3 City of Manhattan Beach
Department of Public Works
1400 Highland AvenueManhattan Beach, CA 90266
Shawn IgoeE-mail: [email protected]
Phone: (310) 802-5315Fax: (310) 802-5314
4 City ofTorrance
Department of Public Works20500 Madronna Avenue
Torrance, CA 90503
John C. Dettle, P.E.E-mail: [email protected]: (310) 618-3059 Fax: (310) 781-6902
5 Los Angeles County Flood Control District
Department of Public WorksStorm Water Quality Division, 11th Floor900 South Fremont AvenueAlhambra,CA 91803 Paul AlvaE-mail: [email protected]: (626) 458-4325

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EXHIBIT C

BEACH CITIES WATERSHED MANAGEMENT GROUP

CIMP IMPLEMENTATION SCOPE OF SERVICES

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EXHIBIT D

BEACH CITIES WATERSHED MANAGEMENT GROUP

CIMP COORDINATION SCOPE OF SERVICES

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Geosyntecc>
consultants
6167 Bristol Parkway Suite 390
Culver City, CA 90230
PH 310.957.6100
v.'w^r.geosyiitec.com
Date: March 10, 2020
To: Shawn Igoe, City of^4;anhattan Beach
From: Geosyntec Consultants
Subject: Beach Cities CMP Implementation
Proposed Scope and Budget for Extended Implementation
2020-2025
This proposal was prepared for the City of Manhattan Beach by Geosyntec Consultants (Geosyntec) in support of the Beach Cities Watershed Management Group Coordinated Integrated Monitoring Program (CIMP).

The focus of this letter proposal is to present a scope of work and budget for Geosyntec to conduct CIMP Implementation for the following Reporting Years:

Year 5 (July I 2020 - June 30 2021)
Year 6 (July 1 2021 - June 30 2022)
Year 7 (July 1 2022 - June 30 2023)Year 8 (July 1 2023 - June 30 2024) Year 9 (July 1 2024 - June 30 2025)
••
It is understood that Year 8 and Year 9 are optional at this time, to be conducted only following approval by the City of Manhattan Beach.

SCOPE OF WORK
Task 1: Project Management and Permitting
As under the existing CIMP Implementation contract, the Geosyntec Team will provide project management services so that work deliverables are provided on or ahead of schedule and within budget. Subtasks will include the following:

Monthly Meetings: The Geosyntec Team will prepare for and attend monthly meetings of the Beach Cities WMG. For monthly meetings, Geosyntec will provide presentations and/or other relevant material, as requested. For cost saving Proposal for CIMP Implementation - 2020-2025
engineers I scientists I innovators

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Beach Cities CIIVTP Implementation
March 10, 2020

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•
purposes, some meetings will be attended via telephone call, unless otherwiserequested.

Other Meetings: The Geosyntec Team will attend, participate in, and/or support the Beach Cities WMG in meetings with other watershed management program groups, Regional Board staff. City Councils, County staff, stakeholders, and/orother consultants as necessary to deliver the Project.

Permitting and Traffic Control: The Geosyntec Team will obtain the necessarypermits for access to the various sampling locations. Based on the CIMP, it is anticipated that one encroachment/access Permit from the Los Angeles County Flood Control District (LACFCD) will be required for monitoring at various outfalls. As with previous years, permitting and access requirements are expected to be minimal. Geosyntec will coordinate with respective cities to confirm that appropriate protocol is adhered to when sampling at locations within that city.

Health and Safety Planning: The Site Health and Safety Plan (SHSP), which is already in place and being implemented under current CIMP monitoring efforts, will continue to be implemented under this proposed scope as a "living" document, to be updated as often as is necessary to provide the most helpful and accurate information for field personnel. The Geosyntec Project Manager, who is also the Geosyntec Los Angeles Health and Safety Coordinator, will confinn that field personnel communicate any and health and safety related issues directly to him so that the SHSP can be amended promptly.

Additional Project Management: The Geosyntec Team will perfonn project management duties, including regular communication with the City on the state of the scope, schedule, and budget; coordination of the Project Team, WM.G, andWatershed Coordination Consultant; and organization of Team coordination calls.

For cost control purposes, the Geosyntec project manager will track earned value relative to budget spent on a weekly basis throughout the Project duration to confirm that the Project stays on schedule and budget and that deviations are identified, communicated, and mitigated early.

Task 1 Deliverables
M:aterial for up to twelve Beach Cities WMG meetings per year, as requested.Material for up to two additional meetings per year, as requested.

An updated HASP, as requested.
•
Proposal forCIMP Implementation - 2020-2025

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TASK 2: REVISED CIMP PER NEW MS4 PERMIT
With the anticipated release of a new MS4 Permit in Fall 2020, CIMP modifications will be necessary to incoq3orate changes set forth in the new Permit. It is assumed that CIMP revisions will begin in Year 1 (2020-2021), the revised CIMP will be finalized andsubmitted to the Regional Board in Year 2 (2021-2022), and the revised CIMP will begin to be implemented in Year 3 (2022-2023).

CIMP revisions may include the following:

Removing/adding pollutants required to be monitored;
Modifying analysis methods to meet new reporting limits (RLs); Updating sample figures;
Altering monitoring frequencies; and
Revising reporting requirements.

Costs for revising the CDVIP are only present for Years 5 (2020-2021) and 6 (2021-2022), since it is assumed the CIMP will be finalized prior to the end of Year 6. As a result of the CIMP revisions, the implementation approach for Tasks 3-6 (herein) will be altered starting in Year 7 and continuing through Year 9. Details of these changes are set forth in the task descriptions below.

Task 2 Deliverables
• Draft and Draft Final CIMP, revised based on Beach Cities WMG comments.

One Final CLMP, revised based on Regional Board comments.

TASK 3: RECEF^ING WATER MONITORESTG
Geosyntec will continue to conduct Receiving Water Monitoring per the approved Beach Cities CIMP. For Year 5 (2020-2021) and Year 6 (2021-2022), this means sampling in accordance with the currently established means and methods in the CIMP, including:

Near-shore receiving water monitoring at sites RW-BCEG-01 and RW-BCEG02; and Santa Monica Bay Bacteria TMDL Shoreline Monitoring. This will include weekly monitoring for fecal indicator bacteria (FIB) consistent with the SIVBBBTMDL, conducted at seven (7) coordinated shoreline monitoring locations.

Sampling will continue to be conducted on Monday mornings. Additional accelerated monitoring will be conducted on subsequent days when trigged in Proposal for CrMP Implementation - 2020-2025

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response to exceedance of the single-sample bacteria objectives, as described in the SMBBB TMDL Coordinated Shoreline Monitoring Plan (CSMP). Bacterial parameters analyzed will include Total Coliform, Fecal Coliform, andEnterococcus.

Beginning in Year 7 (2022-2023), the following changes are anticipated to impactreceiving water monitoring:

Reporting Levels (RLs) for all sampled parameters will be significantly reduced, resulting in an increased laboratory fee;
The "core monitoring constituents" required to be sampled will be required for the first three events of the year, rather than just the first. This will result in a significantly higher laboratory fee; and
Toxicity sampling will require the use of three different test species for the first year. Following this, the most sensitive species can be used. This too will result in a higher laboratory fee.

Although there is the possibility that the number of SMBBB monitoring locations is reduced based on the proposed changes to the SMBBB TMDL, this change has not been accounted for at this time.

Task 3 Deliverables
No Task 3 deliverables, as reporting is handled under Task 6.

TASK 4: STORMWATER OUTFALL MONITORING
Geosyntec will continue to conduct Stormwater Outfall Monitoring per the approved Beach Cities CIM1P. As with receiving water monitoring, Year 5 (2020-2021) and Year 6(2021-2022) will be sampled in accordance with the currently established means and methods in the CDVIP. This will include:

Sampling at outfalls OF-BCEG-1, OF-BCEG-2, OF-BCEG-6, and OF-BCEG-7 in Year 5; and
Sampling at outfalls OF-BCEG-4a, OF-BCEG-5, and OF-BCEG-7 in Year 6.

Beginning in Year 7 (2022-2023), the following changes are anticipated to impact outfall monitoring:Proposal for CIMP Implementation - 2020-2025

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Reporting Levels (RLs) for all sampled parameters will be significantly reduced, resulting in an increased laboratory fee; and
The increase to required receiving water sampling constituents will likely result in a larger number of required outfall sampling constituents. This will result in a significantly higher laboratory fee;
Task 4 Deliverables
No Task 4 deliverables, as reporting is handled under Task 6.

TASK 5: NON-STORMWATER OUTFALL MONITORING
Non-stormwater outfall monitoring will continue to be implemented per the Beach Cities CIMP during Year 5 and Year 6. This sampling will include two sample events per year at the two outfalls currently monitored.

Beginning in Year 7, the following changes are anticipated to be made to the NonStormwater Outfall Monitoring Program:

A re-screening of all Beach City-Owned outfalls will be conducted by the Geosyntec Team, in order to evaluate where significant non-stormwater discharges are occurring. This screening is assumed to be necessary in theDominguez Channel Watershed only, since all known major outfalls in the SMB Watershed are diverted or otherwise do not discharge.

Sampling will increase to four times per year, in accordance with the new Permit.

As with stormwater outfall sampling, laboratory analyses coupled with the number of constituents required to be sampled are expected to increase.

Task 5 Deliverables
A technical memorandum summarizing screening results.

Post-event sampling memoranda (two per year) summarizing the results of the non-stormwater monitoring.

Annual updates of the MS4 Outfall GIS database.

TASK 6: DATA ASSESSMENT AND REPORTING
Geosyntec will continue with all necessary data assessment and reporting to help theBeach Cities comply with the MS4 Permit and their CIMP. Specific items covered underthis task include:

Proposal for CIMP Implementation - 2020-2025

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March 10, 2020

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•
. SMBBB TIVrDL Shoreline Monitoring reporting, including weekly, monthly, and annual submittals;
Sample event summaries, including laboratory analyses, QA/QC results,rainfall/runoff analyses, etc; Semi-Annual data submission, in compliance with requirements specific in thePermit. This assessment will continue to include data from outside agencies,including City of Los Angeles and County of Los Angeles; and Annual Integrated Monitoring Compliance Report, for inclusion in the WMG's Annual Report. (Beginning in Year 7, it is assumed that this report will be required twice per year.)
Task 6 Deliverables
52 weekly SIvIBBB TMDL shoreline nionitoring data submittats, per year. 12 monthly SMBBB TMDL shoreline monitoring data submittals, per year.

Two Semi-Annual Data Reports, per year.bttegrated N4onitoring Compliance Reports, as required, each including submittal of a draft and final version.
•
••
SCOPE ASSUMPTIONS:

General
All memoranda and reports, unless otherwise specified, include one round of review from the Beach Cities WMG, with consolidated electronic comments provided to Geosyntec to be incorporated into the final version.

Receiving Water M.onitoring
Two (2) near-shore receiving water monitoring sites are assumed to be monitored during three .(3) wet-weather events, per year.

Two (2) wet-weather aquatic toxicity samples are assumed per year at each selected near-shore receiving water monitoring location.

No toxicity identification evaluations (TDBs) are assumed at this time, based on results to-date.

Boat captain will be responsible for assessing open ocean water conditions to guard the safety of Geosyntec Team personnel prior to mobilization from the harbor.

Proposal for CIMP [mplementation - 2020-2025

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March 10, 2020

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SMBBB TIVlDL Shoreline IVIonitoring is assumed at seven (7) sample locations.

Labor includes site observations at sample locations as well as eight (8) storm drain outfalls. Collection includes use of a 4x4 vehicle and a trained technician based on City requirenients for access and driving on City beach property. No weekend or holiday surcharges are included in the cost proposal.A total of sixteen (16) repeat sample events are assumed for the SMBBB TMDLShoreline Monitoring per year.

No additional permitting is assumed to be required for receiving watermonitoring.

Stormwater Outfall Monitoring
Up to four (4) outfalls are assumed to be monitored during three (3) wet-weather events, per year.

No wet-weather aquatic toxicity samples or TIE analyses are assumed at this time,based on results to-date.

Traffic control from California Barricade is assumed at two locations (OF-BCEG5, and OF-BCEG-6). Other traffic control is assumed to be minor (i.e., not requiring lane closure), and will be provided by the Geosyntec Team.

A LACFCD encroachment/access permit is assumed to be necessary for monitoring. The fee for this permit is assumed to be waived. •
Non-Stormwater Outfall Monitoring
•
•
Two (2) outfalls are assumed to require monitoring twice per year due significant non-stormwater discharges.

No dry-weather aquatic toxicity samples are assumed at this time.

Traffic control by California Barricade is assumed to not be required for nonstormwater outfall monitoring.

SCHEDULE
The proposed scope of work covers five full monitoring years, from July 1, 2020 throughJune 30, 2025. It is understood that the last two years of this proposal are optional extensions.

BUDGET
Geosyntec's cost estimate for the above-described CIMP Implementation is provided inthe following table. A detailed cost breakdown is available upon request.

Proposal for CIMP Implementation - 2020-2025

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EXHIBIT D

BEACH CITIES WATERSHED MANAGEMENT GROUP

CIMP COORDINATION SCOPE OF SERVICES

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MCGOWAN CONSULTING, LLC
412 Olive Avenue, #189, Huntington Beach, CA 92648
310-213-4979 [email protected]
April 1, 2020
Stephanie Katsouleas, P.E., Director of Public WorksShawn Igoe, Utilities Division Manager City of Manhattan Beach
3621 Bell Avenue
Manhattan Beach, CA 90266
RE: PROPOSAL FOR BEACH CITIES WMG COORDINATION SERVICESDear Ms. Katsouleas and Mr. Igoe:

McGowan Consulting, LLC, is pleased to provide this proposal to the City of Manhattan Beach (City)to coordinate and implement watershed activities for the Beach Cities Watershed Management Group (WMG).

McGowan Consulting provides environmental consulting services focused on stormwater quality and watershed protection to municipalities in the south Santa Monica Bay. Our two senior staffmembers have more than 25 years of combined experience in municipal stormwater consulting. We are adept at tracking and coordinating joint activities and in synthesizing complex technical and regulatory issues into cogent analysis on which clients can rely for decision-making and policy setting. McGowan Consulting has been providing these watershed coordination services to theBeach Cities WMG for the past five years and we have an in-depth understanding of the particular needs and technical challenges faced by this group and the watershed area it manages.

The Scope and Cost of Services in this proposal have been developed to provide support to the BeachCities WMG based on the proposed tasks and needed services discussed with and previously approved by the representatives of the Beach Cities WMG. Given that the schedule for adopting the 5th term MS4 Permit has been delayed with a revised target of Fall 2020, the representativesunderstand that the proposed scope of services and budgets for FY2122 and FY2223 are estimated based on our best professional judgement. CIMP Coordination Services are identified andauthorized as Task 7 in the Beach Cities CIMP Memorandum of Understanding (CIMP MOD), and accordingly this Scope of Services is organized into Tasks 7.1 through 7.9.

Excluded from this Scope of Services is effort to carry out the Beach Cities GIMP Implementationscope of work, i.e.. Tasks 1 through 6 of the Beach Cities CIMP MOD, including preparation of the Integrated Monitoring Compliance Report, which is contracted separately by the City with the CIMPImplementation Consultant on behalf of the Beach Cities WMG.

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Scope of Services
This Scope of Services provides for McGowan Consulting to serve as the Coordinated Integrated Monitoring Program (CIMP) Coordination Consultant for the Beach Cities WMG for fiscal years 2020- 21(FY2021), 2021-22 (FY2122), and 2022-23 (FY2223). The scope and assumptions for Tasks 7.1 through 7.9 are outlined below.

Task 7.1 Meeting Planning, Agendas and Minutes
Plan, revise and distribute the Beach Cities WMG agendas and minutes for monthly meetings.

Arrange for guest speakers as needed. A level of effort of four (4) hours per month is assumed based on previous experience.

Task 7.2 Meeting Preparation, Attendance, Coordination
Prepare materials for information, discussion and decision-making at the Beach Cities WMG meetings. Attend and coordinate the meetings, take notes during the meeting for documentationin the minutes, and follow up on action items from each meeting. A level of effort of eight (8) hoursper month is assumed based on one staff person attending in-person and running the meeting with a second staff person calling in and taking notes during the meeting.

Task 7.3 WMG Coordination Activities
Project management, planning and scheduling of group activities. As directed by the Beach Cities WMG, provide support to the group in carrying out required activities, including maintaining an upto-date schedule of WMG implementation activities, milestones and deadlines, and other as-needed assistance. In FY2223 additional effort is provided to amend the CIMP MOD for approval by the Beach Cities WMG governing boards prior to its expiration.

Task 7.4 Support for Adaptive Management
Since a second Adaptive Management Report including re-run of the RAAand revision of the EWMPis required for submittal by June 2021, effort in this task for FY2021 is to finalize an MOU forEWMP/RAA Update, to review and comment on deliverables provided by the EWMP Consultant, and to provide supporting information as-needed. Also in FY2021, a Time Schedule Order (TSO) request is anticipated to be needed to obtain a time extension prior to the final wet weather SantaMonica Bay Beaches Bacteria TMDL deadline of July 15, 2021. The TSO request will be prepared byMcGowan Consulting in coordination with the Beach Cities WMG for submittal to the Regional Board by April 15, 2021 (90 days prior to the final TMDL deadline). Effort during FY2122 will include support for responding to comments from Regional Board staff on the revised EWMP/RAA, and possible presentations to the Regional Board. This effort may also include further negotiations with RegionalBoard staff on the TSO. Increased allocation in FY22-23 is provided to account for new EWMP Implementation support following EWMP approval and to prepare notifications as-needed to theRegional Board for minor EWMP revisions to reflect progress on the Beach Cities WMG implementation actions.

Task 7.5 CIMP Review & Support
Provide technical and regulatory review of data and reports prepared by CIMP Implementation Consultant, including: semi-annual data reports, microbial source tracking deliverables, and periodic BEACH Crnes WATERSHED COORDINATION SERVICES Page 2

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memos. During FY2021 this will also include review and comment on the revised CIMP as prepared by CIMP Implementation Consultant to conform to the requirements in the next Regional Permit. InFY2122 this may also include assistance in responding to Regional Board comments on the revised CIMP.

Task 7.6 Develop & Manage Joint Outreach
Development of joint public outreach materials utilizing contract services for graphic layout and illustration. Management of ongoing website content and hosting utilizing contracted services fromthe Environmental Services Center staff of the South Bay COG. In FY2021, effort is anticipated toinclude: the finalization of the South Bay Rainwater Harvesting Guide, development of revised webpage content and layout for the existing Environmentally Friendly Landscaping, Gardening and Pest Control webpages, and development of new South Bay Rainwater Harvesting webpage content/layout including the development of a QR code to be incorporated into existing print outreach materials. In FY2122, this effort is anticipated to include the development of shortnarrative pieces on rainwater harvesting to be distributed via existing digital networks. In FY2122and FY2223, the effort is anticipated to include aligning outreach efforts to address new MS4 Permit objectives such as including the development of metrics to track Outreach Program effectiveness.

Where possible outreach efforts \A/ill leverage work done through the South Santa Monica Bay WASC.

Subcontracted work to be performed by staff of the South Bay Cities Council of Governments (COG)will include continued website hosting, preparation of website analytics for annual reporting, and updating the webpages with additional content as directed by McGowan Consulting. Subcontracted work to be performed by Christine Barnicki/Desktop Design during FY2021 will include completionof the South Bay Rainwater Harvesting Guide based on comments provided by the Beach CitiesWMG. Other graphic design/layout assistance may be needed for short narrative pieces and/or anew outreach piece following adoption of the Regional MS4 Permit.

As in previous years, it is assumed that McGowan Consulting's level of effort and supportingsubcontracted services for joint outreach will be offset by 50% through combined work for the Peninsula WMG.

Task 7.7 Permit/Region-wide Coordination
Participation in Los Angeles region-wide WMG Coordination and Regional Board meetings and workshops on behalf of the Beach Cities WMG. During FY2021 this task includes an allocation oftime to represent the WMG and participate in Los Angeles region-wide WMG Coordination andPermit negotiation meetings, Regional Board meetings and workshops assuming two (2) RegionalBoard meetings or workshops plus three (3) Region-wide WMG coordination calls with effort costshared between Beach Cities WMG and Peninsula WMG. Additional time is also included for meeting preparation and/or preparation of brief statements of testimony but excludes preparation of formal visual presentations for Regional Board meetings. During FY2122 and FY2223 the effort will be utilized to coordinate as needed with other WMGs and permittees in implementing the new Regional Permit requirements for CIMPs and WMPs, which may include participating in meetings tonegotiate revisions to the annual reporting templates.

BEACH CmEs WATERSHED COORDINATION SERVICES Pages

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Task 7.8 Regional Project Funding Assistance
Assistance aligning joint projects for funding opportunities as directed by the Beach Cities WMG,such as assistance with: presentations to South Bay WASC or submittal of a joint project into the SCW online project module for scoring or for technical resources funding; representation at South Bay Steering Committee meetings of the Greater Los Angeles Integrated Regional Water Management Program (IRWMP) for the final round of Prop 1 IRWM; and coordination between theBeach Cities WMG and other entities such as Industrial sites on potential joint regional projects.

Note that the allocation of effort in this task is not sufficient to prepare a full grant proposal.

Task 7.9 Watershed Annual Report
Preparation of the Beach Cities WMG Watershed Annual Report. This subtask also includes review and coment on the Integrated Monitoring Compliance Report (IMCR) prepared by the CIMPImplementation Consultant for incorporation into the Watershed Annual Report. During FY2021a level of effort is assumed consistent with previous efforts under the 2012 LA MS4 Permit. An increased effort is assumed for FY2122 and FY2223 to account for new reporting requirements and forms as required following adoption of the Regional MS4 Permit.

Cost of Services
McGowan Consulting will conduct the work effort as outlined in the above Scope of Services during the period from July 2020 through June 2023 for an amount not to exceed $295,880 as detailed in the attached Budget Table and Rate Schedule. Labor rates for FY2021 are shown in the attached Rate Schedule include automobile mileage, parking fees, and routine printing and copying; laborrates for FY2122 and FY2223 will be adjusted annually based on increases in the Consumer PriceIndex for the Los Angeles area as calculated by the U.S. Department of Labor - Bureau of Labor Statistics. Other direct costs chargeable to the project may include: subcontracted graphic design,illustration, website design and hosting services; translation services; report reproduction and binding; courier services; and other direct project costs not specifically included in labor rates. An allocation for other direct costs such as for subcontracted graphic design, website updates andhosting services is included as a separate line item in the Budget Table.

McGowan Consulting will adhere to the Scope of Services and inform City staff and Beach Cities WMG representatives of changing requirements and emerging issues as part of regularcommunication. In order to provide a measure of flexibility to best meet the needs of the BeachCities WMG, it is understood that reallocation of level-of-effort and cost between tasks and subtasks and if necessary between fiscal years may occur so long as the total contract amount is notexceeded.It is the nature of regulatory and monitoring-driven programs to be subject to uncertainty such as unforseen technical issues, new regulatory requirements, or regulatory enforcement action.

If it becomes necessary to provide additional consulting services to meet the needs of the Beach Cities WMG and at City of Manhattan Beach staff's direction, McGowan Consulting will submit an authorization request for a change to the Scope and Cost of Services.

BEACH CmES WATERSHED COORDINATION SERVICES Page 4

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Please do not hesitate to contact me if you have any questions or require additional information or clarification regarding this proposal. Thank you for the opportunity and privilege of continuing to provide watershed coordination services for the City of Manhattan Beach and the Beach Cities Watershed Management Group.Sincerely,
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Kathleen C. McGowan, P.E., ENVSP
Principal/Owner
McGowan Consulting, LLC
Attachments:

Budget Table
Rate Schedule
BEACH CrriES WATERSHED COORDDIATION SE&VICES Pages

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JVtcGowan Consulting, LLC
Labor Rates
Fiscal Year 2.020-2.02.11
Professional/Staff Rates
Principal
Sr. Scientist
Staff Scientist
$167 per hour
$138 per hour
$60 per hour
Expenses
Labor rates include: automobile mileage within greater Los Angeles and Orange County area, parking, routine printing and copying Other direct costs chargeable to the project include: graphic layout and illustration, webpage design and hosting, translation services, report reproduction and binding, courier services, blueprint services, graphics services, project-specifiic publications, and any other direct project costs not included in the labor rates.
1 Labor rates to be adjusted annually based on increases in the Consumer Price Index for the Los Angeles area as calculated by the U.S. Department of Labor Bureau of Labor Statistics BEACH CFTIES WATERSHED COORDINATION SERVICES Page?

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City of Hermosa Beach | Page 1 of 3
Meeting Date: April 8, 2025
Staff Report No. 25-CDD-055
Honorable Mayor and Members of the Hermosa Beach City Council ADOPTION OF A RESOLUTION APPROVING FINAL MAP NO. 83937 FOR AN ADDITION TO AN EXISTING CONDOMINIUM LOCATED AT 705 2ND STREET CEQA: Determine that the project is categorically exempt from the California Environmental Quality Act
(Associate Planner Jake Whitney)
Recommended Action:

Staff recommends City Council:

1. Determine that the project is exempt from the California Environmental Quality Act;

2. Adopt a resolution (Attachment 1) approving Final Parcel Map No. 83937 (Attachment 2), which is consistent with the approved Vesting Tentative Parcel Map; and

3. Authorize the City Clerk to endorse the certificate for said map.

Executive Summary:

At its February 21, 2023 meeting, the Planning Commission approved conditional use permit (CUP) 23-01, Precise Development Plan (PDP) 23-01, and Vesting Tentative Parcel Map (VTPM) No. 83937 for the construction of a new two-unit detached condominium project. An applicant has two years from the date of a tentative map approval to submit for final map approval. The property owner, DD Built LLC, applied for final map approval on February 12, 2025. Upon review of Final Map No. 83937 (Attachment 2), staff recommends City Council adopt a resolution approving said final map.

Background:

At its February 21, 2023 meeting, the Planning Commission approved CUP 23-01, PDP 23-01, and VTPM No. 83937 for the construction of a new two-unit detached condominium project. The project is currently under construction.

Past Board, Commission, and Council Actions
Meeting Date Description
February 21, 2023 Planning Commission approved a CUP 23-01, PDP 23-01, and VTPM No. 83937
Discussion:

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City of Hermosa Beach | Page 2 of 3
Once a Vesting Tentative Parcel Map is approved by the Planning Commission, copies of the tentatively approved map must be submitted to the Los Angeles County Engineer, who is contracted by the City, to review the map for its technical correctness, pursuant to Section 66442(a)(4) of the State Subdivision Map Act. The Parcel Map was reviewed and approved by the Los Angeles County Engineer, and a letter was issued January 30, 2025 (Attachment 3).

Final maps must be submitted to the City Council and must be approved by the City Council, “...if it conforms to all the requirements of [Subdivision Map Act] and any local subdivision ordinance applicable at the time of approval or conditional approval of the tentative map and any rulings made thereunder....” pursuant to Section 66458(a) of the State Subdivision Map Act.

Staff reviewed the Final Parcel Map and found it substantially consistent with the Vesting Tentative Parcel Map approved by the Planning Commission and in conformance with the State Subdivision Map Act.

General Plan Consistency:

Approval of the final map is the final procedural step in the process to build and occupy this new development. It allows for the division of ownership of the units for this project that has already been evaluated for its consistency with PLAN Hermosa by the Planning Commission. Policies Relevant to this project and its final ownership and occupancy are listed below.

Land Use Element
Goal 1: Create a sustainable urban form and land use patterns that support a robust economy and high quality of life for residents.
 Policy 1.6 Scale and context. Consider the compatibility of new development within its urban context to avoid abrupt changes in scale and massing.

Goal 2: Neighborhoods provide for diverse needs of residents of all ages and abilities, and are organized to support healthy and active lifestyles.  Policy 2.3 Balanced neighborhoods. Promote a diverse range of housing unit types and sizes, within allowed density.

Goal 5. Quality and authenticity in architecture and site design in all construction and renovation of buildings.

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City of Hermosa Beach | Page 3 of 3
 Policy 5.6 Eclectic and diverse architecture. Seek to maintain and enhance neighborhood character through eclectic and diverse architectural styles.

Environmental Determination:

Pursuant to the California Environmental Quality Act (CEQA), the proposed project is Categorically Exempt from the California Environmental Quality Act as defined in Section 15303(b), Class 3 Exemption, New Construction or Conversion of Small Structures, because the proposal pertains to final map approval for the construction of limited numbers (two) of new, small structures. More specifically, the project is comprised of two new condominium units in an urbanized area, totaling no more than six dwelling units. Moreover, none of the exceptions to the Categorical Exemption apply, nor would the project result in a significant cumulative impact of successive projects of the same type in the same place over time or have a significant effect on the environment due to unusual circumstances or damage a scenic highway or scenic resources within a state scenic highway.

Fiscal Impact:

There are no fiscal impacts associated with the recommended actions.

Attachments:

1. Draft Resolution

2. Final Map No. 83937

3. Letter from County Engineer
Respectfully Submitted by: Jake Whitney, Associate Planner Concur: Alexis Oropeza, Planning Manager
Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Reviewed by: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

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P a g e 1 of 2

CITY OF HERMOSA BEACH
RESOLUTION NO. 25-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING FINAL MAP NO. 83937 FOR A TWOUNIT DETACHED CONDOMINIUM PROJECT LOCATED AT 705 2ND

STREET AND DETERMINING THAT THE PROJECT IS CATEGORICALLY

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, on February 21, 2023, the Planning Commission of the City of Hermosa Beach conducted a duly noticed public hearing to consider the application for approval of Conditional Use Permit (CUP) 23-01, Precise Development Plan (PDP) 23-01, and Vesting Tentative Parcel Map (VTPM) No. 83937 for the construction of a new two-unit detached condominium project at 705 2nd Street and, upon conclusion of said public hearing the Planning Commission adopted its Resolution No. 23-03 approving Vesting Tentative Parcel Map No. 83937; and
WHEREAS, on February 12, 2025, Maria Islas on behalf of the owner Daniel Coleman of DD Built LLC (the “Applicant” hereinafter) filed an application for approval of Final Map No. 83937 (the “Application” hereinafter), as described in the title of this Resolution; and
WHEREAS, pursuant to Municipal Code Section 16.08.040, the City Engineer has reviewed Final Map No. 83937 and determined that the map is technically correct, conforms to the approved Vesting Tentative Parcel Map and is in compliance with applicable provisions of Title 16 of the Municipal Code and of the Subdivision Map Act; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Council hereby specifically finds that all of the facts set forth in this Resolution are true and correct.

SECTION 2. Pursuant to Section 16.08.040 of the Hermosa Beach Municipal Code, the City Council finds the Final Parcel Map to be in substantial conformance with the

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P a g e 2 of 2
Vesting tentative Parcel map, with Title 7, Division 2, Chapter 3 of the California Government Code and with the applicable provisions of Title 16 of the Municipal Code.

Based on the foregoing finding, the City council hereby approves Final Marcel Map No. 83937 as presented.

SECTION 3. Pursuant to the California Environmental Quality Act (CEQA), the proposed project is Categorically Exempt from the California Environmental Quality Act as defined in Section 15303(b), Class 3 Exemption, New Construction or Conversion of Small Structures, because the proposal pertains to final map approval for the construction of limited numbers (two) of new, small structures. More specifically, the project is comprised of two new condominium units in an urbanized area, totaling no more than six dwelling units. Moreover, none of the exceptions to the Categorical Exemption apply, nor would the project result in a significant cumulative impact of successive projects of the same type in the same place over time or have a significant effect on the environment due to unusual circumstances or damage a scenic highway or scenic resources within a state scenic highway.

SECTION 4. This Resolution shall take effect immediately. The City Clerk shall certify the passage and adoption of this Resolution; shall cause the original of the same to be entered among the original resolutions of the City Council; shall make a minute of the passage and adoption thereof in the minutes of the City Council meeting at which the same is passed and adopted; and shall transmit a copy of this Resolution to the Applicant.

PASSED, APPROVED, and ADOPTED on this 8
th day of April, 2025.
______________________________________________________________________________________ Dean Francois
President of the City Council and Mayor of the City of Hermosa Beach, CA Myra Maravilla Patrick Donegan
City Clerk City Attorney

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COUNTY OF LOS ANGELES

DEPARTMENT OF PUBLIC WORKS
“To Enrich Lives Through Effective and Caring Service”
900 SOUTH FREMONT AVENUE
ALHAMBRA, CALIFORNIA 91803-1331
Telephone: (626) 458-5100
http://dpw.lacounty.gov
January 30, 2025
MARK PESTRELLA, Director
ADDRESS ALL CORRESPONDENCE TO:

P.O. BOX 1460
ALHAMBRA, CALIFORNIA 91802-1460

IN REPLY PLEASE
REFER TO FILE: LD-2
Mr. Lucho Rodriguez
Deputy City Engineer
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254-3884
Dear Mr. Rodriguez:

PARCEL MAP 83937
Parcel Map 83937 has been reviewed and approved by Public Works for mathematical accuracy, survey analysis, title information, and for compliance with the Subdivision Map Act. It is ready for your examination and certification as to compliance with the conditions of approval and applicable City ordinances.

The City Council or Advisory Agency should make the findings required by the California Environmental Quality Act and the Subdivision Map Act.

After your approval and the approval of the City Council or Advisory Agency, the final map should be returned to Los Angeles County Public Works, Land Development Division, for filing with the Registrar-Recorder/County Clerk's office.

If you have any questions, please contact Mr. Max Rodriguez of Public Works, Land Development Division, at (626) 458-4915 or [email protected].

Very truly yours,

MARK PESTRELLA, PE
Director of Public Works

CIARA BARNETT, PE
Assistant Deputy Director
Land Development Division
MR:lh
P:\LDPUB\SUBMAP\LETTERS\CITY LETTERS - PARCEL MAPS\83937MAP-CITY LETTER (HERMOSA BEACH).DOC

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Hermosa Beach City CouncilApril 8, 2025

Hermosa Beach City Council
April 8, 2025