City Council/Public Financing Authority
February 3, 2026

City of Huntington Beach, California
Annual Comprehensive
Financial Report
For Fiscal Year Ended June 30, 2025

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City of Huntington Beach,
California
Annual Comprehensive
Financial Report
For the Year ended
June 30, 2025
Prepared by
the Finance Department

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Introductory
Section
Annual Comprehensive Financial Report 2025

Introductory Section
Table of Contents i
Letter of Transmittal iii
City Officials x
Organizational Chart xi
Certificate of Achievement in Excellence in Financial Reporting xii Financial Section
Independent Auditor’s Report 1
Management’s Discussion and Analysis (unaudited) 5
Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position 22
Statement of Activities 23
Fund Financial Statements:

Balance Sheet – Governmental Funds 24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 26 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 27 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 28
Statement of Net Position – Proprietary Funds 29
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 31 Statement of Cash Flows – Proprietary Funds 32
Statement of Fiduciary Fund Net Position – Fiduciary Funds 33 Statement of Changes in Fiduciary Fund Net Position – Fiduciary Funds 34 Notes to Financial Statements 36
Required Supplemental Information
Notes to Required Supplementary Information 102
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget And Actual – General Fund
103
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget And Actual – Grants Special Revenue Fund
104
Schedule of Changes in the Net Pension Liability and Related Ratios 105 Schedule of Changes in the Net OPEB Liability and Related Ratios 108 Schedule of Contributions 109
Schedule of Money Market Weighted Rate of Return 111
Schedule of Contributions for the OPEB Plan 112
Annual Comprehensive Financial Report 2025 City of Huntington Beach i
Table of Contents
Supplementary Information
Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Other Governmental Funds 116 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds 120
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Other Governmental Funds
124
Statement of Net Position – Internal Service Funds 138 Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds 139 Statement of Cash Flows – Internal Service Funds 140
Combining Statement of Fiduciary Fund Net Position 142 Combining Statement of Changes in Fiduciary Net Position 143 Statistical Section
Net Position by Component – Last Ten Fiscal Years 148
Changes in Net Position – Last Ten Fiscal Years 150
Fund Balances – Governmental Funds – Last Ten Fiscal Years 152 Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years 154 Assessed and Actual Valuation of All Taxable Property (Excluding Redevelopment Agency) - Last Ten Fiscal Years
156
Property Tax Rates – All Direct and Overlapping Governments Tax Rate 04-001 Largest Area in City – Last Ten Fiscal Years
156
Property Tax Levies and Collections – Last Ten Fiscal Years 157 Top Ten Property Tax Payers – Current Year and Nine Years Ago 158 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 160 Legal Debt Margin – Last Ten Fiscal Years 162
Statement of Direct and Overlapping Bonded Debt 163
Principal Private Employers – Current Year and Nine Years Ago 164 Full-Time Actual and Budgeted City Employees by Function/Program– Last Ten Fiscal Years 165 Operating Indicators by Function/Activity – Last Ten Fiscal Years 166 Capital Assets Statistics by Function/Activity 168
City of Huntington Beach Annual Compr ehensive Financial Report 2025 ii
Table of Contents

CITY OF HUNTINGTON BEACH
December 31, 2025
Honorable Mayor, City Council and Citizens of the City of Huntington Beach:

In accordance with the requirements of the City Charter, and the City of Huntington Beach’s ongoing commitment to transparent financial reporting, I am pleased to present the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2025.

As required by the City Charter, and to ensure the reliability of the information contained herein, the City of Huntington Beach (the City) contracted with independent auditing firm Davis Farr LLP.

The goal of the audit was to provide reasonable assurance that the City’s financial statements are free from material misstatement. In addition, Davis Farr LLP audits the City’s major program expenditures of federal grants for compliance with Title 2 of the United States Code of Federal Regulations Part 200 (Uniform Guidance). The Single Audit Report is published separately from this ACFR and may be obtained upon request from the City’s Finance Department.

This report consists of management’s representations concerning the City’s finances. As such, management assumes full responsibility for the completeness and accuracy of the information presented in this document and ensuring it is reported in a manner that fairly presents the financial position and operations of the various funds of the City. To provide a reasonable basis for making these representations, and assurance that the financial statements will be free from material misstatement, management has established a comprehensive internal control framework that is designed to both protect the government’s assets from theft, loss, or misuse and to compile sufficient reliable information for financial statement conformity with Generally Accepted Accounting Principles (GAAP). As the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable assurance rather than absolute assurance that the financial statements will be free from material misstatement.

We are pleased to report that Davis Farr LLP granted the City an unmodified (clean) opinion for the financial statements of the City for the year ended June 30, 2025. The auditor’s opinion can be found in the Financial Section of this report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the financial statements in the form of a Management Discussion and Analysis (MD&A). This transmittal letter is designed to complement and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report.

Profile of the City of Huntington Beach
The City of Huntington Beach is home to a thriving beach community, located on the Orange County coast, 35 miles south of Los Angeles and 90 miles north of San Diego. With a population of 196,276 residents, it is known as Surf City due to its abundance of beaches; the year-round sunny and warm Mediterranean climate; and its casual lifestyle. With over 10 miles of coastline and iconic pier spanning 1,856 foot in length- the longest pier on the West Coast- Huntington Beach plays host to over 16 million visitors annually.

Annual Comprehensive Financial Report 2025 City of Huntington Beach iii Introductory Section
As the fourth largest city in Orange County, and the 23rd largest in California by population, Huntington Beach is recognized as a prime location to live, work and play, ranking #1 in the nation for “Quality of City Services”, #34 for “Best-Run City” in America and #11 in America for “Best Places to Raise a Family” by WalletHub. The City boasts an annual median household income of $122,919, 60 percent higher than the median household income for the United States, 21 percent higher than the State of California and 5 percent higher than Orange County.

Founded in the late 1880s, Huntington Beach was incorporated as a Charter City in 1909.

Huntington Beach has a Council/Manager form of government wherein seven City Council members are elected to four-year terms, and the Mayor is filled on a rotating basis from the incumbent Council Members. The City Attorney, City Clerk and City Treasurer positions are also elected and serve four-year terms. The City of Huntington Beach is a full-service city including police, fire, public works, and other key functional departments with a dedicated and talented team of over 1000 full-time employees.

In 2011, the unincorporated oceanfront community of Sunset Beach was officially annexed by the City of Huntington Beach. Sunset Beach is a small beachfront community with approximately 1,000 residents and 1.5 square miles of land. Beachfront properties with high property values make this community a valuable addition to the City. Sunset Beach features one of the widest and most pristine beaches in Southern California and is home to the historic Sunset Beach Arts Festival.

A thriving beach community, Huntington Beach is home to numerous events, including the Great Pacific Airshow - the only beachfront airshow on the West Coast featuring the U.S. Air Force Thunderbirds, U.S. Navy F-35C Demo Team, Canadian Forces Snowbirds, and many others. This unique airshow, which first premiered in October 2016, has gained tremendous popularity and attracts visitors from all over the world to view the three-day event.

The City’s century-old traditional Fourth of July Fireworks Show and Parade, known nationally as “the largest Fourth of July Parade west of the Mississippi,” spans over a five-day period that includes a Main Street Block Party with free live music, carnival rides, and other family-friendly activities, Surf City 5K Run, and spectacular fireworks show overlooking the pier.

The City also hosts a variety of other exciting events for families and visitors such as the annual Concours d’Elegance, Civil War Days, International Surfing Association (ISA) World Surfing Games, and other events. In November 2023, the inaugural Darker Waves beachfront music festival featuring New Order, Tears for Fears, the B-52s, and others, performed to a sold-out crowd of 30,000.

City of Huntington Beach Annual Comprehensive Financial Report 2025 ivIntroductory Section
Economic Condition and Outlook
Like many local area cities, the City of Huntington Beach is grappling with increased costs in all areas including workers’ compensation and insurance increases, inflationary pressures on operating and capital costs, and increasing CalPERS pension costs. Through the leadership and support of City Council, the City has implemented various cost saving measures without reductions in essential service levels. These strategies included a combination of targeted reductions in operating accounts with underutilization trends, deferring transfers to other funds, maintaining vacancy savings through the Managed Hiring process, reductions in contractual expenditures and the prudent use of available reserves. These measures will buy time to further analyze the longer-term fiscal impacts and develop measured and deliberate adjustments, including changes to service delivery models and personnel, if necessary.

The City of Huntington Beach continues to thrive together through the motto “OneHB,” which reflects the City’s commitment to facing the potential upcoming recession created by inflationary conditions and supply chain shortages guided by the following principles:
● To stay committed to being One Team: working together to serve the people of Huntington Beach exceptionally to inspire pride in the community.
● Work to have One Focus: to stay fanatical about achieving municipal excellence by bein g active caretakers of our unique, people-centric HB culture. ● Continue to pursue One Goal: to ensure that HB continually improves its standing as a premier coastal community as measured through the health of our people, our organization, our infrastructure, and our community.

Property Tax
The City of Huntington Beach’s assessed valuations are very strong, reflecting both new development and increased property values. The City’s Fiscal Year 2025/26 assessed property value grew 4.9 percent to $58.2 billion. This solid performance, coupled with steady year-over-year growth, reflects a stable property tax base that can weather steep declines in real estate markets. Over 60 percent of parcels have an assessed valuation (AV) base year prior to 2004, representing a significant amount of untapped AV. For Fiscal Year 2023/24, secured property tax revenue collections totaled $70,619,000. For Fiscal Year 2024/25, secured property taxes totaled , $73,709,000 reflecting a 4 percent increase.

Total Assessed Valuation
Fiscal Years 2016/17 - 2025/26
(in billions)
$37.5 $39.4 $41.5 $43.8 $46.1 $47.3
$50.3 $53.1 $55.5 $58.2
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 $0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
$60.0
$65.0
Annual Comprehensive Financial Report 2025 City of Huntington Beach v Introductory Section
Sales Tax
Huntington Beach’s business community is well-diversified with no single industry or business dominating the local economy. Local businesses include aerospace and high technology, petroleum, manufacturing, computer hardware and software, financial and business services, hotel and tourism, automobile services, large-scale retailers, and surf apparel. The City’s diverse sales tax base makes it a stable source of revenue and mitigates the impact of industry-specific downturns as shown below.

Composition of Sales Tax Revenue
Fiscal Year 2024/25
Autos and Transportation:

Autos and Transportation:
20%
20%
Autos and Transportation:
20%
Building and Construction :

Building and Construction :
8%
8%
Building and Construction :
8%
Business and Industry:

Business and Industry:
8%
8%
Business and Industry:
8%
Fuel and Service Stations:

Fuel and Service Stations:
8%
8%
Fuel and Service Stations:
8%General Consumer Goods:

General Consumer Goods:
18%
18%
General Consumer Goods:
18%
Restaurants and Hotels:

Restaurants and Hotels:
17%
17%
Restaurants and Hotels:
17%
State and County Pools:

State and County Pools:
16%
16%
State and County Pools:
16%
Other:

Other:
5%
5%
Other:
5%
Historical Sales Tax Revenue
*Fiscal Year 2017/18 reflects nine months of data only due to the change in the City’s fiscal year $36.1
$40.4
$31.4
$43.9
$41.1
$47.7
$53.4 $52.6 $51.4 $52.4
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 $0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
$50.0
$55.0
$60.0
City of Huntington Beach Annual Comprehensive Financial Report 2025 viIntroductory Section
Transient Occupancy Tax (TOT)
Transient Occupancy Tax (TOT), a 10 percent tax applied to hotel stays within the City remains strong. The City collected $16,990,000 in TOT revenues during FY 2024/25, which decreased by $409,000 or 2.4 percent.

Budget Development and Monitoring
The budget is prepared under the supervision of the City Manager and transmitted to the City Council for deliberation at least 30 days prior to the end of the fiscal year. Pursuant to the City’s Charter, the City Council must adopt the annual budget by June 30th and may amend or revise it any time at a properly noticed meeting. Budgetary control is at the Department level within each fund and a Department Head, with the Chief Financial Officer’s approval, may transfer funds within like categories (operating and capital expenditures) of the same Department. The transfer of funds for salaries and benefits requires additional approval by the City Manager or his /her designee.

Cash Management Policies and Practices
Surplus cash is invested by the elected City Treasurer, in investments allowed by the City’s Investment Policy. The Investment Policy is adopted annually by the City Council after approval by the Investment Advisory Board. It outlines guidelines to meet the daily cash flow needs of the City, maximize the efficiency of the City’s cash management system, and identifies prudent investment vehicles for cash balances. The City Treasurer, as required by California Government Code 53601, prepares an annual Statement of Investment Policy which allows the City to meet current obligations while earning a market rate of return. Further information regarding the City’s cash and investments can be found in Note 2 of the financial statements. (In Millions)
Transient Occupancy Tax Revenue
*Fiscal Year 2017/18 reflects nine months of data only due to the change in the City’s fiscal year. $10.0
$11.4
$8.8
$14.0
$9.6
$10.4
$15.8
$17.3 $17.4 $17.0
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 $0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
Annual Comprehensive Financial Report 2025 City of Huntington Beach vii Introductory Section
Long-Term Financial Planning and Major Initiatives
The Strategic Goals provides the framework for the goals and objectives of the City. The City Council held a Strategic Planning Workshop on June 8, 2023, establishing eight goals to achieve over the next four years. The 2023-2027 Strategic Plan, approved by City Council, includes the eight Strategic Goals listed below to achieve over the next few years:
● Economic Development - greater business retention, investment and job growth in the City. ● Fiscal Stability - available funding to support a high-quality level of programs, service s and capital investments and to build a structural surplus. ● High Performing Organization - an engaged City workforce committed to responsive and exceptional public service for all.
● Homelessness - A continuum of care that reduces homelessness and maintains qualit y of life for the entire community.
● Housing - proactive programs to address diverse housing needs within the City’s jurisdiction. ● Infrastructure Investment - maintain and upgrade infrastructure that supports the community’s day-to-day needs in accordance with the City’s Infrastructure Report Card. ● Public Engagement - a community that has easy access to clear, accurate, and timely City information and expresses increased awareness and involvement in City activities. ● Public Safety - Ensure the safety and protection of all community members, both efficiently and effectively.

The goals drive both short and long-term budgetary decisions and the daily operations of the City by ensuring everyone is consistently working to achieve the goals outlined in the Strategic Plan.
“One Stop Shop”
The City is continuing the process of implementing a “One Stop Shop” to facilitate the permitting process. The “One Stop Shop” streamlines the permitting process and provides applicants with a comprehensive checklist to complete the necessary steps to obtain permits. The “One Stop Shop” approach aims to make the permitting process more efficient so that businesses and residents experience quicker and easier access to obtain permits for business licenses, short-term rentals, and building permits.

Infrastructure Report Card
Infrastructure provides essential services and affects quality of life for all Huntington Beach residents; to sustain these critical systems, it is important to routinely assess them. The City is preparing an Infrastructure Report Card (IRC) that will serve as a high-level summary to highlight the current condition of the City’s Infrastructure. This report card will assign grades (A-F) to various infrastructure categories, communicating the status of each and identifying priorities for improvement. The project structure is made up of three separate committees including the Outreach and Communications Committee. The Outreach and Communications Committee is comprised of approximately 100 Huntington Beach residents appointed by the City Council and/or are recognized members of the community who will act as ambassadors of this process through their networks. This will promote resident participation, education, and awareness of the project both during the assessments and after the final report is released.

City of Huntington Beach Annual Compr ehensive Financial Report 2025 viiiIntroductory Section
Awards and Acknowledgements
The City of Huntington Beach has once again received the “Certificate of Achievement for Excellence in Financial Reporting” award bestowed by the Government Finance Officers’ Association (GFOA) of the United States and Canada for the 39th consecutive year. Receipt of the award requires government entities to publish transparent, easily readable and efficiently organized Annual Comprehensive Financial Reports, conforming to program, accounting, and legal standards.

The Certificate of Achievement earned for the fiscal year ended June 30, 2024, is valid for one year only. The City believes that this Annual Comprehensive Financial Report continues to conform to the Certificate of Achievement Program requirements and will be submitted to the GFOA for its consideration for another award.

I wish to thank the City Council, City Manager, and City Departments for their continued diligence in their role as fiscal stewards for the City of Huntington Beach. Without their leadership and support, the favorable financial results contained in this report would not have been possible.

I would also like to thank the Finance Commission, a seven-member body appointed by the City Council, which has been instrumental in helping the City maintain its long term goal of financial sustainability.

The preparation of this report would also not have been possible without the professional dedicated staff of the Finance Department. Specifically, I would like to thank Ming Zhai, Andrew Rasmusson, Quyen Nguyen, and Ian Wuh for their hard work and dedication.

Respectfully,
Zack Zithisakthanakul
Assistant Chief Financial Officer
Annual Comprehensive Financial Report 2025 City of Huntington Beach ix Introductory Section
City of Huntington Beach

City Council
Mayor Casey McKeon
Mayor Pro Tem Butch Twining

Councilmember Don Kennedy
Councilmember Andrew Gruel
Councilmember Pat Burns
Councilmember
Gracey Larrea-Van Der
Mark
Councilmember Chad Williams

Executive Team
City Manager Travis Hopkins
Assistant City Manager Marissa Sur

Elected Department Heads
City Treasurer Jason Schmitt
City Clerk Lisa Lane Barnes
City Attorney Michael Vigliotta

Department Directors
Finance Zack Zithisakthanakul
Fire Chief Eric McCoy
Police Chief Eric Parra
Public Works Chau Vu
Community Development Jennifer Villasenor
Human Resources Vacant
Community & Library Services Ashley Wysocki
Information Services John Dankha
City of Huntington Beach Annual Comprehensive Financial Report 2025 xIntroductory Section
Introductory Section
FY 2025 - 26 Organizational Chart

THE PEOPLE OF HUNTINGTON BEACH
City Attorney
Advisory
Community Prosecution
Litigation
City Clerk
Admin, Public Support &
Elections
Records Management
City Treasurer
Investments
Revenue Services
City Council
Mayor
Mayor Pro-Tempore
City Council Members
City Manager
Assistant City Manager
Community
Development
Community
& Library
Services
Finance Fire Human
Resources
Information
Technology
Services
Police Public
Works
City Council
Support
Building
Code
Enforcement
Economic
Development
Housing
Permit Counter
Building
Events &
Rentals
Library &
Cultural
Services
Program &
Services
Facilities &
Development
Accounting
Services
Budget
Management
Business
License
Emergency
Response
Marine Safety
Professional
Standards
Benefits &
Training
Labor
Relations
Recruitment
& Selection
Risk
Management
Business
Applications
Infrastructure
Systems
Technology
Engagement
& Support
Administrative
Operations
Investigations
Patrol
Special
Operations
Support
Services
Engineering
Maintenance
& Operations
Transportation
Utilities
Communications
& HBTV
Homelessness
& Behavioral
Health
Services
Sustainability
Elected Offices
Appointed Departments
Annual Comprehensive Financial Report 2025 City of Huntington Beach xi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Huntington Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
City of Huntington Beach Annual Comprehensive Financial Report 2025 xiiIntroductory Section

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Annual Comprehensive Financial Report 2025 City of Huntington Beach xiii
Financial
Section
Annual Comprehensive Financial Report 2025

Independent Auditor’s Report

City Council
City of Huntington Beach
Huntington Beach, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Huntington Beach (City), as of and for the year June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Huntington Beach as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

The financial statements for the year ended June 30, 2025, reflect certain prior period restatements as described further in note 18 to the financial statements. As described further in Note 18 to the financial statements, during the year ended June 30, 2025, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 101 :

Compensated Absences. Our opinion is not modified with respect to these matters.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 1 Financial Section
Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

City of Huntington Beach Annual Comprehensive Financial Report 2025 2Financial Section
Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis , budgetary comparison information and pension and other post employment benefit schedules be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated December 31, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, Annual Comprehensive Financial Report 2025 City of Huntington Beach 3 Financial Section
contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Irvine, California
December 31, 2025
City of Huntington Beach Annual Comprehensive Financial Report 2025 4Financial Section
Management’s
Discussion
and Analysis
(Unaudited)
As management of the City of Huntington Beach, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Huntington Beach for the year ended June 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our Letter of Transmittal, which can be found on pages iii-ix of this report.

Financial Highlights
Below is a summary of the City’s government-wide financial information (in thousands):

Total Governmental and Business-Type Activities
June 30, 2025
June 30, 2024
(Restated)
Amount
Increase
(Decrease)
Percent Increase
(Decrease)
Assets $ 1,525,252 $ 1,461,477 $ 63,775 4.40%
Deferred Outflows of Resources 86,286 135,090 (48,804) (36.10%) Liabilities 667, 852 681,964 (14,112) (2.10%)
Deferred Inflows of Resources 16,885 18,868 (1,983) (10.50%) Total Net Position 926,801 895,735 31,066 3.50% Unrestricted Net Position (160,959) (149,004) (11,955) 8.00% Long-Term Obligations 591,300 605,981 (14,681) (2.40%) Program Revenues 203,948 189,331 14,617 7.70 %
Taxes 219,085 220,940 (1,855) (0.80%)
Other General Revenues 29,697 53,534 (23,837) (44.50%) Expenses 421,664 403,080 18,584 4.60%
● The City of Huntington Beach’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $926,801,000. Total net position increased by $31,066,000 or 3.5 percent primarily as a result of a $53,454,000 increase in Cash and Investments. This change is related to the GASB 31 market adjustment, which compares the investment’s market value to its booked value. In the prior fiscal year-end, the GASB 31 adjustment resulted in the booked value being higher than the market value. For Fiscal Year 2024/25, the booked value was lower than the market value.
● Long-term obligations decreased by $14,681,000 or 2.4 percent. The decrease is primarily the result of GASB 68 adjustments. The adjustment decreased net pension liability by $17,507,000 as a result of actuarial valuation adjustment of the City’s current net pension liability. At the same time, long-term obligations due in more than one year are $899,000 due to normal debt obligations being paid down.
● Deferred outflows of resources decreased by $48,804,000 or 36.1 percent due to the differences between projected and actual earnings on Pension Plan investments used to determine the City’s net pension liability. Deferred inflow of resources decreased by $1,983,000 or 10.5 percent, primarily due to a decrease of $1,835,000 related to difference between expected and actual experience on Pension Plan investments used to determine the City’s net pension liability.
● Program revenues increased by $14,617,000 or 7.7 percent. The increase is due to the increase revenue from business-type activities from utility rate increase and increase in revenue in the Fire and Community Services departments.

City of Huntington Beach Annual Comprehensive Financial Report 2025 6Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
● Expenses increased by $18,584,000 or 4.6 percent largely due to increases of $7,618,000 in Police and $7,427,000 in Public Works, and $2,000,000 in Community Development expenditures.

This demonstrates City’s ongoing commitment to fostering a safe and livable community supported by reliable and well-maintained infrastructure and strong Police department.

Overview of the Financial Statements
This discussion and analysis serves as an introduction to the City of Huntington Beach’s basic financial statements. The City of Huntington Beach’s basic financial statements are composed of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains certain other supplementary information in addition to the basic financial statements.

Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s financial condition and are prepared similarly to those in the private sector.

The Statement of Net Position presents information on all of the City’s assets, liabilities, deferred outflows and inflows with the difference between them reported as net position. Over time, continued increases or decreases in net position may indicate whether the City’s financial condition is improving or deteriorating.

The Statement of Activities presents information on how the City’s net position changed during the most recent fiscal year. These changes are reported on the full accrual basis when the economic event occurs (not when the cash is received or paid).

The government-wide financial statements separate functions that are primarily supported by taxes and intergovernmental revenues (governmental activities) from functions that are supported by user fees (business-type activities). Governmental activities include the City Council, City Manager, City Treasurer, City Attorney, City Clerk, Finance, Human Resources, Community Development, Fire, Information Services, Police, Community Services, Library Services, and Public Works departments. Business-type activities include Water, Sewer, Refuse, and Hazmat Services.

The government-wide financial statements include the City and all of its component units that are legally separate but whose activities entirely support the City of Huntington Beach.

The government-wide financial statements can be found on pages 22-23 of this report.

Fund Financial Statements
The City separates financial activities into funds to maintain control over resources that have been legally separated. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds
Governmental funds are used to account for the same functions reported in governmental activities in the government-wide financial statements. However, the focus in the governmental fund section of these financial statements is on near-term resource inflows and outflows available for spending, as well as balances of resources available for spending at the end of the fiscal year.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 7 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
It is useful to compare information presented for the governmental funds to information presented for governmental activities in the government-wide financial statements. The reconciliations indicate to the reader the differences in financial reporting between the governmental activities section and the governmental funds section.

The City maintains 25 individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenue, Expenditures, and Changes in Fund Balances for the General Fund, Grants Special Revenue Fund, Low and Moderate Income Housing Asset Fund (LMIHAF), Pension Liability Debt Service Fund, and Infrastructure Fund, all of which are considered to be major funds. Data from the other 19 smaller funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in combining statements elsewhere in this report.

The City provides an annual appropriated budget for its governmental funds. Budgetary comparison schedules for the General Fund and Grants Special Revenue Fund are required to be presented and are included on pages 103-104. Other major governmental funds (LMIHAF Capital Projects Fund, Pension Liability Debt Service Fund and Infrastructure Fund) are presented in the Supplementary Information section on pages 134-135 of this report and demonstrate compliance with the budget.

The basic governmental fund financial statements can be found on pages 24 and 27 of this report.

Proprietary Funds
The City maintains two different types of proprietary funds, which are used to account for the same activities as the business-type activities in the government-wide financial statements.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Water, Sewer Service, Refuse, and Hazmat Service activities. Internal Service funds are used in accounting as a device to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its self-insurance worker’s compensation activities, self-insurance general liability activities, and equipment replacement needs. Because these services predominantly benefit governmental rather than business-type functions, they have been included with governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide information for Water, Sewer Service, Refuse, Hazmat Service, Self-Insurance Workers’ Compensation, Self-Insurance General Liability, and Equipment Replacement Funds.

The basic proprietary fund financial statements can be found on pages 29-32 of this report.

City of Huntington Beach Annual Comprehensive Financial Report 2025 8Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Huntington Beach’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund financial statements can be found on page 33-34 of this report.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 37-99 of this report.

Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and OPEB benefits to its employees and General Fund and major special revenue funds budget-to-actual comparisons. Required supplementary information can be found on pages 102-112 of this report.

The combining statements and schedules referred to earlier in connection with other governmental funds is presented immediately following the required supplementary information on pensions.

Combining and individual fund statements and schedules can be found on pages 115-135 of this report.

Government-wide Financial Analysis
As noted earlier, net position may serve, over time, as a useful indicator of a government’s financial position. At the end of the current fiscal year, the City reported positive net position balances for both governmental and business-type activities. Ttotal assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $926,801,000.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 9 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Below is a summary schedule of the City’s net position at June 30, 2025 (in thousands):

Governmental Activities June 30, 2025
June 30, 2024
(Restated)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Current and Other Assets $ 467, 950 $ 429,299 $ 38,651 9.00% Other Non-Current Assets 9,820 4,653 5,167 111.00% Capital Assets 804,824 791,511 13,313 1.70%
Total Assets 1,282,594 1,225,463 57,131 4.70%
Deferred Outflows of Resources 81,596 126,835 (45,239) (35.70%) Current and Other Liabilities 62,258 61,904 354 0.60% Long-Term Obligations 560,911 573,492 (12,581) (2.20%) Total Liabilities 623,169 635,396 (12,227) (1.90%) Deferred Inflows of Resources 15,932 17,935 (2,003) (11.20%) Net Position:

Net Investment in Capital Assets 771,109 751,578 19,531 2.60% Restricted 144,388 127,535 16,853 13.20%
Unrestricted (190,408) (180,146) (10,262) 5.70% Total Net Position $ 725,089 $ 698,967 $ 26,122 3.70% Business-Type Activities June 30, 2025
June 30, 2024
(Restated)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Current and Other Assets $ 96,838 $ 94,226 $ 2,612 2.80% Other Non-Current Assets 1,067 554 513 92.60%
Capital Assets 144,753 141,234 3,519 2.50%
Total Assets 242,658 236,014 6,644 2.80%
Deferred Outflows of Resources 4,690 8,255 (3,565) (43.20%) Current and Other Liabilities 14,294 14,079 215 1.50% Long-Term Obligations 30,389 32,489 (2,100) (6.50%) Total Liabilities 44,683 46,568 (1,885) (4.00%) Deferred Inflows of Resources 953 933 20 2.10%
Net Investment in Capital Assets 144,753 141,232 3,521 2.50% Restricted 27,510 24,394 3,116 12.80%
Unrestricted 29,449 31,142 (1,693) (5.40%)
Total Net Position $ 201,712 $ 196,768 $ 4,944 2.50% Analysis of the City’s Net Position
Current and Other Assets: The increase in current and other assets of $38,651,000 for governmental activities is mainly due to increases in Cash and Investment. As mentioned above, this section increased to $31,136,000. PARS Section 115 Trust increased receipts of $5,744,000, General fund receipts increased by $7,451,000, GASB 31 Market adjustments increased by $7,651,000, the rest of increase related to the receipts for internal service funds.

The increase in current and other assets of $2,612,000 for business-type activities is primarily due to increased cash and investment balance in the Water Fund, Sewer fund and Hazmat Service fund. This growth was driven by higher revenues in Fiscal Year 2024/25, resulting from utility rate increases, which contributed to the overall rise in collections.

Non-current Assets: Non-current Assets increased by $5,167,000 in governmental activities and increased by $513,000 in business-type activities due to GASB 75 Other Postemployment Benefit adjustments.

City of Huntington Beach Annual Comprehensive Financial Report 2025 10Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Current and Other Liabilities: Current and Other Liabilities for governmental activities increased by $354,000 and increased by $215,000 for business-type activities. The increase in business-type activities is due to normal fluctuations in payroll cycles.

Deferred Outflows and Inflows of Resources: The decrease in deferred outflows of resources of $45,239,000 and $3,565,000 for governmental activities and business-type activities and decrease of deferred inflows of resources of $2,003,000 for governmental activities and increase of $20,000 for business-type activities is the result of actuarially determined amortization differences between projected and actual earnings on pension plan investments, and differences between expected and actual experience used to determine Net Pension and Other Postemployment Benefits Liabilities. See Notes 6, 7, and 8 for additional information.

Long-Term Obligations: Long-term obligations decreased by $12,581,000 for governmental activities and $2,100,000 for business-type activities primarily due to the GASB 68 Financial Report for Pension Plans adjustments resulting in a $17,507,000 overall decrease of net pension liability.

Net Investment in Capital Assets: The largest portion of the City’s net position reflects investment in capital assets (e.g., land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets that are still outstanding. The City uses capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets are reported net of related debt, the resources needed to repay this debt must be provided from other sources, since capital assets themselves cannot be used to liquidate these liabilities. Net position invested in capital assets, net of related debt from governmental activities increased by $19,531,000 or 2.6 percent, street improvements and construction projects, such as improvements to the Police station, various park improvements, pump station improvements, Central Library improvement, and fiber expansion projects throughout the city. Net position invested in capital assets net of related debt from business-type activities increased by $3,521,000 or 2.5 percent primarily due sewer improvement.

Restricted Net Position: An additional portion of the City’s net position is subject to external (legally imposed or statutory) restrictions ($144,388,000 for governmental activities, and $27,510,000 for business-type activities). These amounts represent 19.9 percent and 13.6 percent of net position for governmental activities and business-type activities, respectively. Restricted net position from governmental activities increased by $16,853,000 or 13.2 percent, largely due to the increase in restricted net position in the Debt Service Fund and Grants Special Revenue Funds. Debt Service increased due to revenues from the voter-approved property tax override dedicated to pension cost payments being set aside. In addition, higher property tax revenues were collected as a result of increased home values. Grants Special Revenue Fund increase is due to the City recognizing more grant revenue than prior year. Total grant revenue exceeded expenditures by $3,338,000.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 11 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Unrestricted Net Position: The unrestricted net position (negative $190,408,000 for governmental activities and positive $29,449,000 for business-type activities) represent negative 26.3 percent and positive 14.6 percent, respectively, of net position for governmental activities and business-type activities. Unrestricted net position for governmental activities decreased by $10,262,000 or 5.7 percent.

Unrestricted net position for business-type activities decreased by $1,693,000 or 5.4 percent. These changes can be attributed to changes in Net Pension Liability and Other Postemployment Benefits.

A condensed summary of governmental activities (in thousands) follows:

Revenues:

Governmental Activities
June 30, 2025 June 30, 2024
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Program Revenues:

Charges for Current Services $ 90,368 $ 86,911 $ 3,457 4.00% Operating Grants and Contributions 15,139 11,678 3,461 29.60% Capital Grants and Contributions 17,541 17,266 275 1.60% Total Program Revenues 123,048 115,855 7,193 6.20% General Revenues:

Property Taxes 118,237 114,630 3,607 3.10%
Sales Taxes 52,384 56,003 (3,619) (6.50%)
Utility Taxes 22,706 23,283 (577) (2.50%)
Franchise Taxes 8,768 9,625 (857) (8.90%)
Transient Occupancy Tax 16,990 17, 399 (409) (2.40%) Use of Money and Property (Loss) 22,256 12,361 9,895 80.10% From Other Agencies - Unrestricted 1,952 5,883 (3,931) (66.80%) Gain from Elimination of Allowances - 31,136 (31,136) (100.00%) Total General Revenues 243,293 270,320 (27,027) (10.00%) Total Revenues 366,341 386,175 (19,834) (5.10%) Expenses:

City Council 469 441 28 6.30%
City Manager 5,733 7,699 (1,966) (25.50%)
City Treasurer 2,368 2,124 244 11.50%
City Attorney 4,093 4,156 (63) (1.50%)
City Clerk 1,750 1,674 76 4.50%
Finance 6,491 6,499 (8) (0.10%)
Human Resources 2,585 2,786 (201) (7.20 %)
Community Development 21,124 19,124 2,000 10.50% Fire 78,393 78,253 140 0.20%
Information Services 9,997 8,682 1,315 15.10% Police 115,058 107,4 40 7,618 7.10 %
Community Services 16,377 15,176 1,201 7.90% Library Services 7,268 7,409 (141) (1.90%)
Public Works 58,987 51,560 7,427 14.40%
Interest on Long-Term Debt 9,469 9,710 (241) (2.50%) Total Expenses 340,162 322,733 17,429 5.40%
Increase in Net Position Before Transfers 26,179 63,442 Transfers (57) (55)
Change in net position 26,122 63,387
Net Position - Beginning of Year 699,968 636,581
Restatements (1,001) -
Net Position - Beginning of Year, as Restated 698,967 636,581 Net Position - End of Year $ 725,089 $ 699,968
City of Huntington Beach Annual Comprehensive Financial Report 2025 12Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
The cost of all governmental activities this year was $340,162,000. However, as shown in the Statement of Activities, the amount that taxpayers ultimately financed for these activities was $217,114,000, as costs of $90,368,000 were paid by those who directly benefited from the programs, or by other governments and organizations that subsidized certain programs with operating grants and contributions of $15,139,000, and capital grants and contributions of $17,541,000. Overall, the City’s governmental program revenues were $123,048,000. The City paid for the remaining “public benefit” portion of governmental activities with $243,293,000 in taxes and general revenue (some of which may only be used for certain programs) and with other revenues, such as interest and general entitlements.

Charges for current services increased by $3,457,000 or 4.0 percent. This increase is mainly from reimbursement of liability claim paid out by the City, Emergency Medical Services (EMS) and Emergency Medical transportation (GEMT) VRRP IGT revenue. Other noteworthy increases in revenue occurred in Community Services, Fire, and Police. Community Services experienced an increase of $940,000, attributable to Quimby Fund revenues, special events, land lease income, film permits, facility rentals, and higher parking fee rates resulting from increased tourism. The Fire Department reported an increase of $4,225,000 due to the City’s participation in EMS billing services. Police program revenues increased by $2,220,000, primarily attributable to parking fines. Community Development and Public Works reported an increase of $978,000.

Operating Grants and Contributions increased by $3,461,000 or 29.6 percent and Capital Grants and Contributions have increased by $275,000 or 1.6 percent. The Operating Grants and Contributions increase is due to Hazard Mitigation Grant Program revenue of $1,803,000 and CalTrans reimbursement Grant of $2,418,000. The majority of the increase in Capital Grants and Contributions is related to several funding sources, including FEMA COVID-19 grant of $1,141,000; Clean California reimbursement grant of $2,583,000 from Caltrans; Arterial Rehabilitation and Bolsa Chica Traffic Signal grant increase of $618,000; LMIHAF principal increase of $349,000; and Commercial Sanitation Sewer revenue increase of $350,000. These gains were partially offset by a $4,900,000 decrease in capital grants , which received in the prior year for various capital improvement projects, a decrease of $578,000 related to the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA), and a decrease of $211,000 in OCA/CIP grant funding.

Program expenses increased by $17,429,000 or 5.4 percent primarily due to increases in Police and Fire cost. Both departments had an overall increase of $24,325,000 which is due to increase in personal cost and pension expense.

Total resources available during the year to finance governmental operations were $1,065,308,000 consisting of net position at July 1, 2024 of $698,967,000, program revenues of $ $123,048,000, and general revenues of $243,293,000. Total expenses for governmental activities during the year were $340,162,000 plus transfers of $57,000. Thus, net position increased by $25,121,000 or 3.6 percent, to $725,089,000.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 13 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
A condensed summary of business-type activities (in thousands) follows:

Business-Type Activities
June 30, 2025 June 30, 2024
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Program Revenues:

Charges for Current Services $ 80,900 $ 73,476 $ 7,424 10.10% Total Program Revenues 80,900 73,476 7,424 10.10% Use of Money and Property (Loss) 5,489 4,154 1,335 32.10% Total Revenues 86,389 77,630 8,759 11.30%
Expenses:

Water Utility 52,846 52,397 449 0.90%
Sewer Service 12,473 12,213 260 2.10%
Refuse Collection 16,009 15,543 466 3.00%
Hazmat Service 174 194 (20) (10.30%)
Total Expenses 81,502 80,347 1,155 1.40%
Increase (Decrease) in Net Position Before
Transfers 4,887 (2,717)
Transfers 57 55
Change in net position 4,944 (2,662)
Net Position - Beginning of Year 196,816 199,478
Restatements (48) -
Net Position - Beginning of Year, as Restated 196,768 199,478 Net Position - End of Year $ 201,712 $ 196,816
The City’s net position from business-type activities increased $4,887,000 before transfers.

This is mainly due to increased charges for current services revenue.

Charges for current services for business-type activities increased by $7,424,000 due to higher rates for the Water Fund and Sewer Services.

The cost of all business-type activities this year was $81,502,000. As shown in the Statement of Activities, the amount paid by users of the systems was $80,900,000, and transfers totaling $57,000. Beginning net position was $196,768,000 and ending net position was $201,712,000, an increase of $4,896,000, or 2.5 percent. Of the ending net position, $144,753,000, or 71.8 percent, was invested in capital assets, $27,510,000 or 13.6 percent was restricted for expenses for the Water Master Plan, and $29,449,000, or 14.6 percent was unrestricted.

Transfers in for business-type activities were $57,000 for the current year.

City of Huntington Beach Annual Comprehensive Financial Report 2025 14Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Financial Analysis of the City’s Major Governmental Funds Below is an analysis of the City’s major governmental fund activities for the year (in thousands):

Governmental Funds
June 30, 2025 June 30, 2024
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Total Fund Equity:

General Fund $ 146,585 $ 132,319 $ 14,266 10.80%
Grants Special Revenue 6,050 2,712 3,338 123.10% LMIHAF Capital Projects 9,627 7910 1,717 21.70% Pension Liability 42,378 36,119 6,259 17. 30 %
Infrastructure 28,982 29,397 (415) (1.40%)
Total Fund Equity $ 233,622 $ 208,457 $ 25,165 12.10% The General Fund Balance increased by $14,266,000 largely due to increases in Intergovernmental revenue, property taxes and other revenues. The General Fund had Emergency Medical transportation (GEMT) VRRP IGT revenue of $6,886,000, and a revenue of $6,887,000 from Successor Agency’s Redevelopment Obligation Retirement Fund (RORF).

The Grants Special Revenue Fund Balance increased by $3,338,000 primarily due to increase in Use of Money and Property tax and intergovernmental revenue. Unavailable revenue decreased $1,933,000 which have been earned or are measurable but are not yet available to finance in Fiscal Year 2024/25.

The LMIHAF Capital Projects Fund Balance increased by $1,717,000 primarily due to a $1,719,000 revenue transfer from the Successor Agency’s Redevelopment Obligation Retirement Fund (RORF).

The Pension Liability Fund increased by $6,259,000, largely due to revenues set aside from the voter-approved property tax override and amount charged to other funds dedicated to the payment of Public Safety pension costs.

The Infrastructure Fund decreased by $415,000 due to the City spending more on needed infrastructure improvement throughout the City. Major projects include Oil Well Abandonment, construction of fiber optic communications along Garfield Avenue, Residential Zone Maintenance, residential pavements, Central Library Fountain improvement, and Civic Center Cooling Tower Replacement.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 15 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Financial Analysis of the City’s Major Proprietary Funds Below is an analysis of the fund equity of the City’s proprietary funds (in thousands):

Enterprise Funds
June 30, 2025 June 30, 2024
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Net Position:

Water Fund $ 118,097 $ 116,368 $ 1,729 1.50%
Sewer Service Fund 82,651 79,813 2,838 3.60%
Refuse Fund 362 216 146 67.60 %
Hazmat Service Fund 602 419 183 43.70%
Total Net Position $ 201,712 $ 196,816 $ 4,896 2.50% Unrestricted Net Position:

Water Fund $ 6,401 $ 5,923 $ 478 8.10%
Sewer Service Fund 22,155 24,722 (2,567) (10.40%) Refuse Fund 298 132 166 125.80%
Hazmat Service Fund 595 413 182 44.10%
Total Unrestricted Net Position $ 29,449 $ 31,190 $ (1,741) (5.60%) The Water Fund total net position increased by $1,729,000 due to water pipeline replacement of $1,532,000. The Sewer Fund’s total net position increased by $2,838,000 due to an increase in capital assets related to the Humboldt LCS Station improvement of $1,785,000. All other enterprise funds generated revenue that exceeded expenses in Fiscal Year 2024/25 due to increases in unbilled receivables and decreases in long-term payments.

Long-Term Obligations
Below is a schedule of the changes to the City’s long-term obligations (in thousands):

Governmental Activities:

June 30, 2024
(Restated) Additions Retirements June 30, 2025
Revenue Bonds $ 22,910 $ - $ (2,295) $ 20,615
Compensated Absences (Restated) 16,534 5,656 (5,061) 17,129 Claims Payable 61,095 41,784 (23,149) 79,730
Pollution Remediation 2,000 - - 2,000
LED Lighting Phase I 65 - (65) -
I-Bank CLEEN Loan 973 - (317) 656
CEC Loan 1,528 - (272) 1,256
Pension Obligation Bonds 305,322 - (12,767) 292,555 Finance Purchase Agreement 14,290 - (2,473) 11,817 Leases Payable 240 - (155) 85
Subscriptions Payable 3,800 - (1,480) 2,320
Total Long-Term Obligations Governmental
Activities 428,757 47,440 (48,034) 428,163
Business-Type Activities:

Compensated Absences 1,806 581 (547) 1,840
Pension Obligation Bonds 19,589 - (897) 18,692 Business-Type Activities: 21,395 581 (1,444) 20,532 Total Long-Term Obligations $ 450,152 $ 48,021 $ (49,478) $ 448,695 City of Huntington Beach Annual Comprehensive Financial Report 2025 16Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Additional information on the City’s long-term debt is shown in Note 11 and Note 14 to the financial statements. Note 14, Leases, provides detail related to GASB 87 related Lease Payable while Note 11 provides detail related to all other long-term debt. The City of Huntington Beach is legally restricted to issuing general obligation bonds to 12 percent of its assessed valuation.

Since the City has no general obligation bonds outstanding, the limit does not apply. The City’s total long-term obligations decreased by $1,457,000 or 0.3 percent from the prior fiscal year as the reduction in total debt related to annual debt service payments was partially offset by new claims payable liabilities and lease obligations.

The City continues to maintain strong credit ratings on all of its debt issues. Most notably, on August 27, 2014 Fitch Ratings issued an AAA Implied General Obligation Bond rating to the City of Huntington Beach and that same rating was most recently reaffirmed in September 2025.

The following are the ratings as determined by Standard and Poor’s and Fitch Ratings as of June 30, 2025.

Debt Instrument S & P Fitch
1999 Tax Allocation Refunding Bonds N/A AA
2002 Tax Allocation Refunding Bonds N/A N/A
2014 Lease Revenue Bonds, Series A AA AA+
2020(a) Lease Revenue Bonds AA AA+
2020(b) Lease Revenue Bonds AA AA+
2021 Pension Obligation Bonds AA+ AAA
Capital Assets
The capital assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. The City has elected to use the “Basic Approach” as defined by GASB Statement No. 34 for infrastructure reporting. The following infrastructure networks are recorded as capital assets in the government-wide financial statements:
● Storm drain system including pump stations, drainage system and manholes. ● Streets (including land underneath streets), traffic signals, curbs, gutters, and sidewalks.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 17 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Below is a schedule of the City’s capital assets, net of accumulated depreciation (in thousands):

Governmental Activities: June 30, 2025 June 30, 2024
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Land $ 369,643 $ 369,538 $ 105 -%
Buildings 124,850 125,878 (1,028) (0.80%)
Machinery and Equipment 39,264 38,543 721 1.90% Construction in Progress 12,500 15,141 (2,641) (17.40 %) Infrastructure 255,755 237, 968 17,787 7.50 %
Right to Use Leased Land - 22 (22) (100.00%)
Right to Use Leased Machinery and Equipment 86 221 (135) (61.10%) Right to Use SBITA Asset 2,726 4,200 (1,474) (35.10%) Total Governmental Activities 804,824 791,511 13,313 1.70% Business-Type Activities:

Land 3,907 3,907 - -%
Buildings 65,228 63,515 1,713 2.70%
Machinery and Equipment 5,104 6,142 (1,038) (16.90%) Construction in Progress 6,293 3,383 2,910 86.00% Infrastructure 64,221 64,287 (66) (0.10%)
Total Business-Type Activities 144,753 141,234 3,519 2.50% Total Capital Assets $ 949,577 $ 932,745 $ 16,832 1.80% Capital assets from governmental activities increased by $13,313,000 or 1.7 percent. This increase is largely due to street replacement infrastructure costs and construction improvements throughout the City. Capital assets from business-type activities increased by $3,519,000 or 2.5 percent largely due to continued construction and improvements to utility stations. Further information on the City’s capital assets can be found in Note 12 of the financial statements.

Furthermore, GASB Statement No. 87, Leases, requires a lessee to recognize a lease liability and intangible right-to-use lease asset. As noted above, the right-to-use lease asset is to be included as a capital asset. For Fiscal Year 2024/25, the City reported $86,000 in right-to-use lease assets.

General Fund Budgetary Highlights
Changes to Original Budget
Comparing the Fiscal Year 2024/25 General Fund Original (i.e. Adopted) Budget expenditures amount of $238,642,000 to the final budgeted amount of $291,174,000 shows a net increase of $52,532,000increase $52,532,000 or 22.0 percent. This overall increase is primarily due to budget carryforward of $8,248,000 and increased transfers to Equipment Fund of $10,105,000, Infrastructure Fund of $17,540,000, Section 155 Trust of $3,170,000, Self Insurance General Liability Fund of $17,552,000, Self Insurance Worker’s Compensation Fund of $4,000,000 increase.

Final budgeted revenues for the General Fund increased $18,570,000 or 6.3 percent from the original (adopted) budget for the Fiscal Year ended June 30, 2025. The change from original to final budget occurred primarily as a result of adjustments made to budgeted Use of Money and Property Fund, Intergovernmental Fund and Other Fund.

City of Huntington Beach Annual Comprehensive Financial Report 2025 18Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Variance with Final Budget
General Fund actual revenues were more than the final budget by $3,673,000 for the Fiscal Year ended June 30, 2025. This budget variance is due in large part to increases in activity related to Licenses and Permits, and Fines and Forfeitures.

General Fund expenditures were $9,514,000 less than the final budget. The favorable budget variance is due in large part to the following:
● The Information Services Departments realized $1,237,000 in savings primarily due to differences in projected versus actual cost of providing services. ● Community Development Departments realized $4,880,000 in savings primarily due to differences in the projected versus actual timing of design, construction, and maintenance contracts for projects, as well as the deferral of various building and planning contracts.

Analysis of City’s Other Major Governmental Funds
Grants Special Revenue Fund
The fund balance in the Grant Special Revenue Fund increased by $3,338,000 primarily due an increase in grant revenue. The two largest amounts received is $2,545,000 from CalTrans and $2,101,000 from FEMA Fiscal Year 2024/25.

LMIHAF Capital Projects Fund
The LMIHAF Capital Projects Fund Balance increased by $1,717,000 due to the Department of Finance agreeing to the Waterfront promissory note issued by the former Redevelopment Agency to the City as an enforceable obligation. This decision resulted in $1,719,000 revenue for the fund.

Pension Liability Debt Service Fund
The fund balance in the Pension Liability Debt Service Fund increased by $6,259,000 due to revenues set-aside from the voter-approved property tax override dedicated to the payment of Public Safety pension costs and employee’s contribution to the fund.

Economic Factors and Next Year’s Budget
The Adopted Fiscal Year 2025/26 Budget totals $541.1 million in all funds. This reflects a $13.8 million, or 2.6 percent increase from the Fiscal Year 2024/25 Adopted All Funds Budget of $527.2 million.

A significant portion of the increase is due to the Enterprise Fund.

General Fund expenditures total $299.4 million and are supported by revenues of $300.1 million.

The Adopted General Fund Budget has no reliance on one-time revenues to fund ongoing operations, which is critical to maintaining the City’s financial viability and success, and represents a $0.5 million, or 0.2 percent, decrease compared to the Fiscal Year 2024/25 Adopted Budget of $300.0 million.

Public Safety: Funding for Public Safety represents 54 cents of every dollar spent in the General Fund. With more than half of the General Fund Budget committed to the Police and Fire Departments, the City has dedicated a large share of its resources, or $161.2 million, to these core services to ensure the safety and protection of all community members.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 19 Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
The Police Department Adopted Budget includes $591,000 for body worn cameras, tasers, training and supplies and approximately $233,000 for replacement of helicopter searchlights and gimbals. In addition, the General Fund Equipment budget includes $910,000 for new police vehicles.

In the Fire Department, the Adopted Budget includes $1.5 million for the purchase of a fire engine and $1.1 million for Emergency Medical Services (EMS) monitors.

The Adopted FY 2025/26 city budget establishes the roadmap for the City’s direction in the year ahead. Like many local area cities, the City of Huntington Beach is grappling with increased costs in all areas, but in particular with regard to the cost of personnel. Our challenge is to continue to provide needed services to our citizens, and visitors. We can only be successful if we continue to maintain a highly qualified and motivated workforce. At the same time, a few major revenues,in particular the sales tax, are under performing.

General Fund Revenue
General Fund revenues are anticipated to be $300.1 million, a $1.6 million, or 0.5 percent decrease from the Fiscal Year 2024/25 Adopted Budget. The largest decreases are in Revenue from Other Agencies, projected to decrease $4.8 million due largely to planned elimination of the prior-year one-time receipt of funds from the Voluntary Rate Range Intergovernmental Transfer (VRRP) Program. The VRRP allows CalOptima Health to secure additional Medi-Cal dollars for the City of Huntington Beach and other California government entities. The revenue received annually by the City is dependent on factors such as the number of program participants in the County and number of Medi-Cal calls for service. Increases in VRRP participants have decreased the amount of available funding to existing participants in Fiscal Year 2025/26. ● Property Tax is the largest revenue category for the City, remains strong and is expected to increase by $5.7 million or 5.3 percent with expected revenues totaling $113.9 million due to increases in assessed property values.
● Charges for Current Services are projected to increase $1.7 million from prior year primarily as the result of lower anticipated building plan reviews and lower Emergency Medical Service billings.

Contacting the City’s Financial Management Team
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report, separate reports of the City’s component units or need any additional financial information, contact the Finance Department at 2000 Main Street, Huntington Beach, California, 92648-2702, phone (714) 536-5630 or email [email protected].

City of Huntington Beach Annual Comprehensive Financial Report 2025 20Management’s Discussion and Analysis
For Fiscal Year Ended June 30, 2025
Basic Financial
Statements
See Notes to the Financial Statements

STATEMENT OF NET POSITION
JUNE 30, 2025
(In Thousands)
Primary Government
Governmental
Activities
Business-type
Activities Total
ASSETS
Current Assets:

Cash and Investments $ 382,448 $ 82,773 $ 4 65,221 Cash and Investments with Fiscal Agent 3,047 - 3,047
Receivables, Net 43,339 8,643 51,982
Advances to Successor Agency 23,903 - 23,903
Lease Receivable 7,776 - 7,776
Inventories - 2,188 2, 188
Prepaids 7,130 - 7,130
Joint Venture 307 3, 234 3,541
Total Current Assets 467,950 96,838 564,788
Non-Current Assets:

Capital Assets:

Non-Depreciable 382,143 10,200 392 ,343
Depreciable, Net 42 2,681 13 4,553 557,234
Total Capital Assets 80 4,824 144,753 949,577
Net Pension Asset 4,345 415 4,760
Net Other Postemployment Benefits Asset 5,475 652 6,127 Total Non-Current Assets 814,644 145,820 960,464
Total Assets 1,282,594 242,658 1,525,252

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 78,142 4,279 82,421 Deferred Outflows Related to Other Postemployment Benefits 3,454 411 3,865 Total Deferred Outflows of Resources 81,596 4,6 90 86,286

LIABILITIES
Current Liabilities:

Accounts Payable 12,948 10,649 23,597
Accrued Payroll 4, 832 438 5,270
Unearned Revenue 4,217 - 4,217
Accrued Interest Payable 584 21 605
Deposits 2,987 1,777 4,764
Long-Term Obligations Due Within One Year 36,690 1,409 38,099 Total Current Liabilities 62,258 14,294 76,552
Long-Term Obligations:

Long-Term Obligations Due in More than One Year 391,473 19,123 410,596 Net Pension Liability 169,438 11,266 180,704
Total Long-Term Obligations 560,911 30,389 591,300
Total Liabilities 623,169 44,683 667,852

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 2,240 222 2,4 62
Deferred Inflows Related to Other Postemployment Benefits 6,130 731 6,861 Deferred Inflows Lease Related 7,562 - 7,562
Total Deferred Inflows of Resources 15 ,932 953 16,885

NET POSITION
Net Investment in Capital Assets 771,109 144,753 915,862 Restricted for:

Debt Service 46,968 - 46,968
Capital Projects 27, 413 26,858 54 ,271
Public Works and Community Services Projects 64,532 - 64,532 OPEB Benefits 5,475 652 6,127
Total Restricted Net Position 144,388 27,510 171,898
Unrestricted (190,408) 29,449 (160,959)
Total Net Position $ 725,089 $ 2 01,712 $ 9 26,801 City of Huntington Beach Annual Comprehensiv e Financial Report 2025 22Basic Financial Statements

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Expenses
Program Revenues

Net (Expense) Revenue and Changes in Net
Position
Charges
for Current
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Primary Government
Functions/Programs
Governmental
Activities
Business-Type
Activities Total
Governmental Activities:

City Council $ 469 $ 157 $ - $ - $ ( 312) $ - $ (312) City Manager 5,733 3,970 534 70 (1,159) - (1,159)
City Treasurer 2,368 134 - - (2,234) - (2,234)
City Attorney 4,093 7 - - (4,086) - (4,086)
City Clerk 1,750 221 - - (1,529) - (1,529)
Finance 6,491 3,499 - - (2,992) - (2,992)
Human Resources 2,585 2,098 - - (487) - (487)
Community Development 21,124 11,530 2,966 953 (5,675) - (5,675) Fire 78,393 24,454 635 5 (53,299) - (53,299)
Information Services 9,997 681 - - (9,316) - (9,316)
Police 115,058 7,779 1, 723 - (105,556) - (105,556)
Community Services 16,377 27,894 686 291 12,494 - 12,494 Library Services 7,268 251 461 - (6,556) - (6,556)
Public Works 58,987 7,693 8,134 16,222 (26,938) - (26,938) Interest on Long-Term Debt 9,469 - - - (9,469) - (9,469) Total Governmental
Activities 340,162 90,368 15,139 17,541 (217,114) - (217,114) Business-Type Activities:

Water Utility 52,846 51,153 - - - (1,693) (1,693)
Sewer Service 12,473 13,366 - - - 893 893
Refuse Collection 16,009 16,042 - - - 33 33
Hazmat Service 174 339 - - - 165 165
Total Business-Type
Activities
81,502 80,900 - - - (602) (602)
Total Governmental and
Business Type Activities
$ 4 21,664 $ 171,268 $ 15,139 $ 1 7,541 $ ( 217,114) $ (602) $ ( 217,716) General Revenues:

Taxes:

Property Taxes 118,237 - 118,237
Sales Taxes 52,384 - 52,384
Utility Taxes 22,706 - 22,706
Franchise Taxes 8,768 - 8,768
Transient Occupancy Tax 16,990 - 16,990
Total Taxes 219,085 - 219,085
Other:

Use of Money and Property 22,256 5,489 27,745
From Other Agencies - Unrestricted 1,952 - 1,952
Total General Revenues 243,293 5,489 248,782
Transfers (57 ) 57 -
Total General Revenues and Transfers 243,236 5,5 46 248,782 Change in Net Position 26,122 4,944 31,066
Net Position - Beginning of Year, as Previously Reported 699,968 196,816 896,784 Restatement - See Note 18 (1,001) (48) (1,049)
Net Position - Beginning of Year, as Restated 698,967 196,768 895,735 Net Position - End of Year $ 725,089 $ 2 01,712 $ 9 26,801 See Notes to the Financial Statements
Annual Comprehensive Financial Report 2025 City of Huntington Beach 23 Basic Financial Statements

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2025
(in Thousands)
Major Governmental Funds

Nonmajor
Governmental
Funds TotalGeneral Fund
Grants
Special
Revenue
LMIHAF
Capital
Projects
Pension
Liability Infrastructure
ASSETS
Cash and Investments $ 14 0,269 $ 8,650 $ 8 ,219 $ 41 ,946 $ 3 2,274 $ 72,025 $ 303,383 Cash and Investments with
Fiscal Agent - - - - - 3,047 3,047
Taxes Receivable 12,749 - - 116 - 2,015 14,880
Other Receivables, Net 9,052 9,098 7,456 316 245 1,732 27,899 Lease Receivable 7,776 - - - - - 7,7 76
Advances to Successor Agency 18,032 - 5,871 - - - 23,903 Prepaids 44 64 - - - 5,165 5,273
Total Assets $ 1 87,922 $ 1 7,812 $ 21 ,546 $ 42,378 $ 3 2,519 $ 83,984 $ 3 86,161

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND

BALANCES

LIABILITIES
Accounts Payable $ 5, 687 $ 2,088 $ 7 $ - $ 3,4 73 $ 1 ,370 $ 12,625 Accrued Payroll 4,637 50 9 - 64 57 4,817
Unearned Revenue 1,178 3,039 - - - - 4,217
Deposits Payable 2,9 86 1 - - - - 2,987
Total Liabilities 14,488 5,178 16 - 3,537 1,427 24,646

DEFERRED INFLOWS OF

RESOURCES
Deferred Inflows Lease Related 7,562 - - - - - 7,562
Unavailable Revenue 19,287 6,584 11,903 - - 1,454 39,228 Total Deferred Inflows of
Resources
26,849 6,584 11,903 - - 1,454 46,790
City of Huntington Beach Annual Comprehensiv e Financial Report 2025 24Basic Financial Statements
See Notes to the Financial Statements

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2025
(in Thousands) (continued)
Major Governmental Funds

Nonmajor
Governmental
Funds TotalGeneral Fund
Grants
Special
Revenue
LMIHAF
Capital
Projects
Pension
Liability Infrastructure

FUND BALANCES (DEFICITS)
Nonspendable:

Prepaids 44 64 - - - 5,165 5,273
Restricted:

Underground Utilities 364 - - - - - 364
Restitution 317 - - - - - 317
Donations 811 - - - - - 811
Section 115 Trust 25,956 - - - - - 25,956
Pollution Remediation - - - - - 359 359
Debt Service - - - 42,378 - 4,590 46,968
Highways, Streets and
Transportation - - - - - 19,546 19,546
Low Income Housing - - 9,627 - - 12,882 22,509
Air Quality - - - - - 98 2 982
Other Capital Projects - - - - - 12,065 12,065
Other Purposes - 5,986 - - - 3,795 9,781
Committed:

Economic Uncertainties 49,756 - - - - - 49,756
Parks - - - - - 8,176 8,176
Other Capital Projects 1,712 - - - 28,982 3,423 34,117 Other Purposes 1,486 - - - - 4,278 5,764
Assigned:

Litigation Reserves 3,650 - - - - - 3,650
Capital Improvement Reserve 9,758 - - - - 5,842 15,600
Equipment Replacement 8,295 - - - - - 8,295
General Plan Maintenance 1,776 - - - - - 1,776
HB Recovery Fund 10,886 - - - - - 10,886
Oceanview Estates 1,010 - - - - - 1,010
General Liability Plan
Migration
2,801 - - - - - 2,801
Pension Rate Stabilization 6,849 - - - - - 6,849
Section 115 Trust 4,381 - - - - - 4,381
Year-End Fair Value 6,330 - - - - - 6,330
Other Purposes 10,403 - - - - - 10,403
146,585 6,050 9,627 42,378 28,982 81,103 314,725 1 87,922 $ 1 7,812 $ 21 ,546 $ 42,378 $ 3 2,519 $ 83,984 $ 3 86,161 Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $
Annual Comprehensive Financial Report 2025 City of Huntington Beach 25 Basic Financial Statements
See Notes to Financial Statements
See Notes to the Financial Statements
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
(In Thousands)
Amounts reported for governmental activities in the statement of net position are different because:

Total Fund Balances Governmental Funds $ 31 4,725
Net Other Postemployment Benefits Asset is not available to pay in the current period and therefore are not reported in the funds.

Net Other Postemployment Benefits Asset 5,445
Net Capital Assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds. Amounts exclude Net Capital Assets of the Internal Service Funds.

Capital Assets 1,226,022
Accumulated Depreciation (437,076)
Total Capital Assets 788,946
Joint Venture 307
Right to Use Leased/SBITA Assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds.

Right to Use Leased Assets 398
Right to Use SBITA Assets 6,178
Accumulated Amortization (3 ,764)
Total Right to Use Assets 2,812
Internal Service Funds are used by management to charge the cost of various city activities to individual governmental and business-like funds. The assets and liabilities of the Internal Service Fund must be added to the Statement of Net Position.
13,206
Revenues that are measurable but not available are not recognized as revenue in governmental funds.

Such amounts are recorded as Unavailable Revenue under the modified accrual basis of accounting. 39,228
Deferred Outflows Related to Pensions 77, 935
Deferred Outflows Related to Other Postemployment Benefits (OPEB) 3,435 Governmental Funds report all pension contributions as expenditures; however, in the Statement of Net Position, the excess of the total pension liability over the plan Fiduciary Net Position is reported as a Net Pension Liability.
(164,569)
Deferred Inflows Related to Pensions (2,230)
Deferred Inflows Related to Other Postemployment Benefits (OPEB) (6 ,097) Other long-term liabilities are not due in the current period and, therefore, are not recorded in the governmental funds.

Accrued Interest Payable (5 83)
Long-term liabilities, including bonds and certificates of participation payable, are not due and payable in the current period and therefore are not reported in the governmental funds. Amounts exclude Long-Term Obligation of the Internal Service Fund.

Long-Term Obligations Due in One Year (21,158)
Long-Term Obligations Due in More than One Year (326,313) Net Position of Governmental Activities $ 725,089
City of Huntington Beach Annual Comprehensiv e Financial Report 2025 26Basic Financial Statements

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Major Governmental Funds

Nonmajor
Governmental
Funds TotalGeneral Fund
Grants Special
Revenue
LMIHAF
Capital
Projects
Pension
Liability Infrastructure

REVENUES
Property Taxes $ 10 9,379 $ - $ - $ 8,858 $ - $ - $ 11 8,237 Sales Taxes 49,310 - - - - 3,074 52,384
Utility Taxes 22,706 - - - - - 22,706
Other Taxes 25,365 - - - - 393 25,758
Licenses and Permits 10,355 - - - - 388 10,743
Fines and Forfeitures 6,040 - - - - - 6,040
Use of Money and Property
(Loss) 33,440 328 1,204 1,258 1,8 68 4,916 43,014
Intergovernmental 18,586 18,927 1,719 - 15 11,419 50,666 Charges for Current Services 35,081 - - 15,727 - 2,931 53,739 Other 7,198 518 - - 11 108 7,835
Total Revenues 317,460 19,773 2,923 25,843 1,894 23,229 391,122

EXPENDITURES
Current:

City Council 492 - - - - - 492
City Manager 3,810 966 - - - 386 5,162
City Treasurer 2,425 - - - - - 2,425
City Attorney 4,098 - - - - - 4,098
City Clerk 1,796 - - - - - 1,796
Finance 6,249 - - - - 17 6,266
Human Resources 2,578 - - - - - 2,578
Community Development 15,830 3,471 1, 206 - - 1,180 21,687 Fire 77, 345 359 - - - 153 77,857
Information Services 8,614 - - - - 1,393 10,007
Police 104,277 2,558 - - - 230 107,065
Community Services 13,562 331 - - 160 903 14,956
Library Services 6,949 170 - - - 69 7,188
Public Works 28,394 8,580 - - 19,688 17,028 73,690 Debt Service:

Principal 4,761 - - 12,724 - 2,295 19,780
Interest 480 - - 8,360 - 660 9,500
Total Expenditures 281,660 16,435 1,206 21,084 19,848 24,314 364,547 Excess (Deficiency) of
Revenues Over (Under)
Expenditures
35,800 3,338 1,717 4,759 (17,954) (1,085) 26,575

OTHER FINANCING SOURCES
(USES)
Transfers In 543 - - 1,500 17,539 2,968 22,550
Transfers Out (22,077) - - - - (530) (22,607)
Total Other Financing Sources
(Uses)
(21,534) - - 1,500 17,539 2,438 (57)
Net Change in Fund Balances 14,266 3,338 1,717 6,259 (415) 1,353 26,518 Fund Balances - Beginning of
Year
132,319 2,712 7,910 36,119 29,397 79,750 288,207
Fund Balances - End of Year $ 1 46,585 $ 6,050 $ 9, 627 $ 42,378 $ 28,982 $ 81 ,103 $ 31 4,725 Annual Comprehensive Financial Report 2025 City of Huntington Beach 27 Basic Financial Statements
See Notes to the Financial Statements
See Notes to the Financial Statements
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities for the Year Ended June 30, 2025 (In Thousands)
Amounts reported for governmental activities in the statement of activities are different because:

Net Changes in Fund Balances - Total Governmental Funds $ 26,518 Capital expenditures - governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets are allocated over their estimated useful lives and reported as depreciation expense.

Depreciable Assets Purchased 33,849
Depreciable Assets Disposition (36)
Non-Depreciable Assets Purchased 4,707
Non-Depreciable Assets Disposition (7,243)
Capital Asset Depreciation (19,828)
Joint Venture 40
Accrual of revenues - certain revenues in the Statement of Activities do not meet the “availability” criteria for revenue recognition in the governmental funds and are not reported in the governmental funds as revenue.

Current Year Grant and Other Revenue Accrual 30,091
Prior Year Grant and Other Revenue Accrual (39,145)
Repayments on long-term receivables provide current financial resources to governmental funds, while loans provided consume the current financial resources of governmental funds. These transactions, however, have no effect on net position.
(718)
Pension income reported in the statement of activities includes the change in the the net pension liability and related changes in pension amounts for deferred outflows and deferred inflows of resources. ( 28,894) Other Postemployment Benefits Payments - Expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds (expenses).
814
Internal Service Funds are used by management to charge the costs of certain activities, such as self insurance workers’ compensation charges. The net revenue of this internal service fund is reported as governmental activities. 6,751
Liabilities not liquidated with current resources - some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Current Year Interest Accrual (583)
Prior Year Interest Accrual 614
Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. 1 9,780 The repayment of some expenses such as compensated absences, claims, and pension expenses, reported in the statement of activities, do not require the use of current resources, and therefore are not reported as expenditures in the governmental funds.
(595)
Change in Net Position of Governmental Activities $ 26,122 City of Huntington Beach Annual Compr ehensive Financial Report 2025 28Basic Financial Statements

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
(In Thousands)
Business-type Activities - Enterprise
Governmental
Activities
Major Enterprise Funds
Total
Internal
Service FundsWater Fund
Sewer
Service Fund Refuse Fund
Hazmat
Service Fund
ASSETS
Current Assets:

Cash and Investments $ 25,342 $ 28,760 $ 837 $ 976 $ 55,915 $ 79,065 Restricted Cash and Investments 26,858 - - - 26,858 - Other Receivables, Net 2,997 7 38 750 1 2 4,497 56 0 Prepaids - - - - - 1,857
Joint Ventures 3,234 - - - 3,234 -
Inventories 2,188 - - - 2,188 -
Unbilled Receivables 2,616 705 825 - 4,146 -
Total Current Assets 63,235 30, 203 2,412 988 96,838 81,482 Non-Current Assets:

Capital Assets:

Land 3,907 - - - 3,907 -
Buildings and Improvements 57, 934 51,977 - - 109,911 6 7 Machinery and Equipment 16,117 4,751 215 - 21,083 20,881 Infrastructure 110,301 4 7,798 - - 15 8,099 290
Construction in Progress 591 5,702 - - 6,293 -
Less Accumulated Depreciation (104,481) (49,892) (167) - (154,540) (8,172) Total Capital Assets 8 4,369 6 0,336 48 - 1 44,753 13,066 Net Other Postemployment Benefits Asset 469 160 16 7 652 3 0 Net Pension Asset 292 109 10 4 415 19
Total Non-Current Assets 85,130 60,605 74 11 145,820 13,115 Total Assets 148,365 90,808 2,486 999 242,658 94,597

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 2, 994 1,120 10 0 65 4,279 207 Deferred Outflows Related to Other
Postemployment Benefits 296 101 10 4 411 19
Total Deferred Outflows of Resources 3,290 1 ,221 110 69 4,690 226 Total Assets and Deferred Outflows of Resources $ 1 51,655 $ 92,029 $ 2,596 $ 1,068 $ 247,348 $ 94,823

LIABILITIES
Current Liabilities:

Accounts Payable $ 8,744 $ 672 $ 1,233 $ - $ 10,649 $ 323 Accrued Payroll 310 115 10 3 4 38 15
Deposits Payable 1,499 92 186 - 1,777 -
Interest Payable 15 6 - - 21 1
Long-Term Obligations Due Within One Year:

Current Portion of Claims Payable - - - - - 15,471
Current Portion of Compensated Absences 367 113 22 - 502 17 Current Portion of Pension Obligation Bonds 635 237 21 14 907 44 Total Current Liabilities 11,570 1,235 1,472 17 14,294 15,871 Non-Current Liabilities:

Long-Term Obligations Due in More than One
Year:

Claims Payable - - - - - 64,259
Compensated Absences 978 301 58 1 1,338 45
Pension Obligation Bonds 12,445 4,655 417 268 17,785 856 Net Pension Liability 7,883 2,949 264 170 11,266 543 Total Non-Current Liabilities 21,306 7, 905 739 439 30,389 65,703 Total Liabilities 32,876 9,140 2,211 456 4 4,683 81,574

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 157 58 5 2 222 10 Deferred Inflows Related to Other
Postemployment Benefits
52 5 18 0 18 8 731 33
Total Deferred Inflows of Resources
See Notes to the Financial Statements
682 238 23 10 953 4 3
Annual Comprehensive Financial Report 2025 City of Huntington Beach 29 Basic Financial Statements
See Notes to the Financial Statements

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
(In Thousands) (continued)
Business-type Activities - Enterprise
Governmental
Activities
Major Enterprise Funds
Total
Internal
Service FundsWater Fund
Sewer
Service Fund Refuse Fund
Hazmat
Service Fund

NET POSITION
Investment in Capital Assets 84,369 60,336 48 - 144,753 13,066 Restricted for:

Capital Projects 26,858 - - - 26,858 -
OPEB Benefits 469 160 16 7 652 19
Unrestricted 6,401 22,155 298 595 29,449 121
Total Net Position 118,097 82,651 362 602 201,712 13,206 Total Liabilities, Deferred Inflows of Resources,
and Net Position $ 151,655 $ 92,029 $ 2,596 $ 1,068 $ 247,348 $ 94, 823 City of Huntington Beach Annual Comprehensive Financial R eport 2025 30Basic Financial Statements

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION PROPRIETARY
FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Business-type Activities - Enterprise
Governmental
Activities
Major Enterprise Funds
Total
Internal Service
FundsWater Fund
Sewer Service
Fund Refuse Fund
Hazmat Service
Fund

OPERATING REVENUES
Sales $ 46,269 $ - $ - $ - $ 46,269 $ -
Fees and Charges for Service - 13,3 62 15,956 339 29,657 42,321 Other 4,884 4 86 - 4,974 1,441
Total Operating Revenues 51,153 13,366 16,042 339 80,900 43,762

OPERATING EXPENSES
Water Purchases 20,069 - - - 20,069 -
Supplies and Operations 11,839 9,980 15,975 166 37, 960 5,348 Engineering 2,127 - - - 2,127 -
Production and Distribution 11,128 - - - 11,128 -
Water Meters 2,14 9 - - - 2,14 9 -
Water Quality 921 - - - 921 -
Water Use Efficiency 321 - - - 321 -
Claims and Judgments - - - - - 32,417
Depreciation 3,924 2,356 21 - 6,3 01 2,537
Total Operating Expenses 52, 478 12,336 15,996 166 80,976 40,302 Operating Income (Loss) (1,325) 1,030 46 173 (76) 3,460

NON-OPERATING REVENUES
(EXPENSES)
Investment Income 3,455 1,95 8 45 31 5,489 3,31 6
Interest Expense (368) (138) (12) (8) (526) (25)
Total Non-Operating Revenues 3,087 1,820 33 23 4,963 3,291 Income Before Transfers 1,762 2,850 79 196 4,887 6,751

TRANSFERS
Transfers In - - 70 - 70 -
Transfers Out - - - (13) (13) -
Total Transfers - - 70 (13) 57 -
Change in Net Position 1,762 2,850 149 183 4,94 4 6,751 Net Position - Beginning of Year, as
Previously Reported
116,368 79,813 216 419 196,816 6,459
Prior Year Corrections (33) (12) (3) - (48) (4)
Net Position - Beginning of Year, as
Restated
116,335 79,801 213 419 196,768 6,4 55
Net Position - End of Year $ 118 ,097 $ 82 ,651 $ 362 $ 602 $ 201,712 $ 13,206 Annual Comprehensive Financial Report 2025 City of Huntington Beach 31 Basic Financial Statements
See Notes to the Financial Statements

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Business-type Activities - Enterprise
Total
Governmental
Activities
Major Enterprise Funds
Internal
Service FundsWater Fund
Sewer
Service
Fund
Refuse
Fund
Hazmat
Service
Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 50,380 $ 1 3,235 $ 16,023 $ 342 $ 79,980 $ 44,594 Cash Paid to Employees for Services (9,931) (3,925) (389) ( 131) (14,376) (431) Cash Paid to Suppliers of Goods and Services (37, 396) (6,639) (15,476) ( 3) (59,514) (1 8,820) Net Cash and Investment Provided by Operating Activities 3,053 2,671 158 208 6,090 25,343

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers In - - 70 - 70 -
Transfers Out - - - (13) (13) -
Debt Service ( 627) (235) (21) (13) (896) (43)
Interest Paid ( 368) (138) (1 3) (8) (527) (24)
Net Cash and Investments Provided (Used) by Noncapital
Financing Activities (995) (373) 36 (34) (1,366) (67)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Purchase of Capital Assets (2,084) ( 7,736) - - (9,820) (4,401) Net Cash and Investments Used by Capital and Related
Financing Activities
(2,084) (7,736) - - (9,820) (4,401)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 3,4 55 1,958 45 31 5,489 3,316
Net Cash and Investments Provided by Investing Activities 3,455 1,958 45 31 5,489 3,316 Net Increase (Decrease) in Cash and Investments 3,429 (3,480) 239 205 3 93 24,191 Cash and Investments - Beginning of Year 48,771 32,240 598 771 82,380 54,874 Cash and Investments - End of Year $ 5 2,200 $ 28,760 $ 837 $ 976 $ 82,773 $ 79,065

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH AND INVESTMENTS PROVIDED (USED) BY OPERATING

ACTIVITIES
Operating Income (Loss) $ (1,325) $ 1,030 $ 46 $ 173 $ (76) $ 3,460 Adjustments to Reconcile Operating Income (Loss) to
Net Cash and Investments Provided (Used) by Operating
Activities
Depreciation 3 ,924 2,356 21 - 6,301 2,537
(Increase) Decrease in Other Receivables, Net (249) (15) 51 3 (210) 832 (Increase) in Unbilled Receivables (514) (143) (106) - (763) - Decrease in Prepaids - - - - - 638
(Increase) in Joint Ventures (587) - - - (587) -
(Increase) in Inventory (657) - - - (657) -
(Increase) in Net Other Postemployment Benefits Asset (70) (24) (2) (1) (97) (5) Increase (Decrease) in Accounts Payable 1,058 ( 1,126) 39 - (29) (852) Increase in Accrued Payroll 126 43 1 1 171 5
Increase (Decrease) in Deposits Payable (9) 28 36 - 55 - Increase in Claims Payable - - - - - 18 ,635
Increase (Decrease) in Compensated Absences (5) 12 27 (2) 32 (1) Decrease in Deferred Pension Outflow 2,357 882 79 51 3,369 162 Increase in Deferred Pension Inflow 151 56 5 2 214 9 (Decrease) in Net Pension Liability (855) (319) (29) (15) (1,218) (57) Decrease in Deferred Other Postemployment Benefits
Outflow 140 48 5 2 195 8
(Decrease) in Deferred Other Postemployment Benefits
Inflow
(140) ( 48) (5) (2) (195) (9)
(Increase) Decrease in Net Pension Asset (292) (1 09) (10) (4) (415) (19) 3,053 $ 2,671 $ 158 $ 208 $ 6,090 $ 25,343Net Cash and Investments Provided by Operating Activities $

NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
There were no noncash investing, capital, or financing activities during the year ended June 30, 2025.

City of Huntington Beach Annual Compr ehensive Financial Report 2025 32Basic Financial Statements
See Notes to the Financial Statements

STATEMENT OF FIDUCIARY FUND NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
(in Thousands)
Custodial Funds
Pension Trust
Fund - Retirement
Supplemental
Fund
Huntington Beach
Redevelopment
Successor Agency
Private Purpose
Trust
Assets
Cash and Investments $ 4 ,807 $ - $ 6,790
Cash and Investments with Fiscal Agent 3,457 - -
Mutual Funds - 68,733 -
Accounts Receivable, Net 1, 113 - -
Interest Receivable - - 52
Total Assets 9,377 68,733 6,842
Liabilities
Current Liabilities:

Accounts Payable 2,263 - 226
Accrued Payroll - - 3
Advances from City of Huntington Beach - - 23,903
Long-Term Obligations Due Within One Year - - 1,328
Total Current Liabilities 2,263 - 25,460
Long-Term Obligations:

Long-Term Obligations Due in More than One Year - - 12,458 Total Long-Term Obligations - - 12,458
Total Liabilities 2,263 - 37,918
Net position
Restricted for:

Pension Benefits - 68,733 -
Individuals and Organizations 7,114 - (31,076)
Total Net Position $ 7, 114 $ 68,733 $ (31,076)
Annual Comprehensive Financial Report 2025 City of Huntington Beach 33 Basic Financial Statements
See Notes to the Financial Statements
See Notes to the Financial Statements

STATEMENT OF CHANGES IN FIDUCIARY FUND NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(in Thousands)
Custodial Funds
Pension Trust
Fund - Retirement
Supplemental
Fund
Huntington Beach
Redevelopment
Successor Agency
Private Purpose
Trust
Additions
Employer Contributions $ - $ 1 ,429 $ -
Special Assessments or Special Taxes Collected from Property Owners 1,574 - 8,666 Business Improvement District Taxes 10,266 - -
Parking Assessments 3,019 - -
Total Additions Before Investment Income 14,859 1,429 8,666 Investment Income (Loss):

Investment Income 184 7,4 06 326
Less: Investment Expense - (130) -
Net Investment Income 184 7,276 326
Total Additions 15 ,043 8,705 8,992
Deductions
Benefits - 5,743 -
Administrative Costs 21 377 -
Payments to Other Organizations 11,574 - -
Economic Development - - 250
Interest and Fiscal Agency Expenses 1,177 - 757
Principal 1,990 - -
Total Deductions 14,762 6,120 1,007
Change in Net Position 281 2,585 7,985
Net Position - Beginning of Year 6, 833 66,148 (39,061) Net Position - End of Year $ 7, 114 $ 68,733 $ (31,076) City of Huntington Beach Annual Comprehensiv e Financial Report 2025 34Basic Financial Statements

THE PAGE INTENTIONALLY LEFT BLANK
Annual Comprehensive Financial Report 2025 City of Huntington Beach 35 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025
Footnote
Number Description Page

1. Summary of Significant Accounting Policies 37

2. Cash and Investments 52

3. Other Receivables 58

4. Unearned Revenue 59

5. Unavailable Revenue 59

6. Retirement Plan - Normal 60

7. Retirement Plan - Supplemental 69

8. Other Post Employment Benefits 73

9. Risk Management 79

10. Interfund Transactions 81

11. Long-Term Obligations 82

12. Capital Assets 89

13. Investment in Joint Ventures 91

14. Leases 91

15. Successor Agency Trust for Assets of the Former Redevelopment Agency of the City of Huntington Beach 91

16. Commitments and Contingencies 95

17. Other Information 99

18. Restatements of Net Position 99
City of Huntington Beach Annual Comprehensive Financial Report 2025 36Basic Financial Statements

1. Summary of Significant Accounting Policies
a. Reporting Entity
The City of Huntington Beach is the primary government. It was incorporated in 1909 as a charter, full-service city. The form of government is Council-Manager. Component units are legally separate organizations for which the City Council is financially accountable, or organizations that if excluded from the accompanying financial statements, would make them misleading. The component units described below are blended (presented as if they are part of the primary government) or presented as a fiduciary trust fund with the primary government for financial reporting purposes. The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board (GASB) Statement 14, The Financial Reporting Entity, as amended by GASB Statement 39, Determining Whether Certain Organizations Are Component Units, and GASB Statement 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and No. 34. A legally separate, tax exempt organization should be reported as a blended component unit of the City if all of the following criteria are met:

1. The governing board is substantively the same as the primary government and there is a financial benefit or burden relationship between the primary government and the component unit;

2. The component unit provides services entirely, or almost entirely, to the primary government or otherwise exclusively, or almost exclusively, benefits the primary government even though it does not provide services directly to it; and

3. The component unit’s total debt outstanding, including leases, is expected to be repaid entirely or almost entirely with the resources of the primary government.

Based on the application of the criteria listed above, the following component units have been included.

Huntington Beach Housing Authority
The Housing Authority (the Authority) was established in March 2011 pursuant to Housing Authority Laws of California to provide rental assistance programs to low-income families and senior citizens, and to operate a Housing Rehabilitation Loan Program and other approved programs. The Authority is governed by a commission of seven members comprised of the City Council, which appoints management and has full accountability for the Authority’s fiscal affairs. The Authority’s financial data and transactions are included within the capital projects Low and Moderate Income Housing Asset Fund (LMIHAF). On January 9, 2012, the City adopted a resolution designating the Housing Authority of the City of Huntington Beach to serve as the Housing Successor Agency.

The Housing Successor Agency’s financial data and transactions are included within the LMIHAF Capital Projects Fund. There is no separate Component Unit Financial Report (CUFR) prepared for the Authority.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 37 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) Huntington Beach Public Financing Authority (Public Financing Authority) -This Corporation was formed in March 1988 to issue debt to finance public improvements and other capital purchases for the City and the former Redevelopment Agency. The Public Financing Authority’s governing body is the City Council, which also adopts its annual budget. The Public Financing Authority is financially dependent on the City. There are no separately issued financial statements available for the Public Financing Authority.

The City of Huntington Beach Supplemental Retirement Plan and Trust (Supplemental Retirement Plan and Trust) - The Trust was formed to provide a supplemental retirement plan for all employees hired prior to 1997 (exact dates differed for various associations).

The governing board of the Supplemental Retirement Plan consists of the City Treasurer, Chief Financial Officer, and the City Manager (or designee). The Retirement Board is responsible for supervising all investments, resolving benefit disputes, and ensuring that contributions are made in order to pay the required benefits. There are no separate financial statements for this plan and trust.
b. Government-wide Financial Statements
The government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting.

Accordingly, all of the City’s assets, deferred inflows/outflows of resources, and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Indirect expenses are allocated to the various functions based on a proportionate use of services. The types of transactions reported as program revenues for the City are reported in three categories:
1) charges for current services; 2) operating grants and contributions; and, 3) capital grants and contributions. Taxes and other items not properly included among program revenues are reported as general revenues. As a general rule, the effects of interfund activity have been eliminated from the government-wide financial statements.

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

City of Huntington Beach Annual Comprehensive Financial Report 2025 38Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) Financial Statement Classification
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of these assets reduce this category.

Restricted Net Position - This category presents restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. The government-wide Statement of Net Position reports $144,388,000 of governmental activities restricted net position. The government-wide Statement of Net Position reports $27,510,000 of business-type activities restricted net position, of which all is restricted by enabling legislation. This category presents restrictions placed on the categories of Capital Projects, Debt Service, and Specific Projects and Programs.

Unrestricted Net Position - This category represents the net position of the City, not restricted for any project or other purpose. The government-wide Statement of Net Position reports negative $190,408,000 of governmental activities unrestricted net position, which is largely a result of the City’s Long-Term Obligations at June 30, 2025 is $591,300,000, of which, $560,911,000 is payable from Governmental Activities. The government-wide Statement of Net Position reports $29,449,000 of business-type activities unrestricted net position.
c. Fund Financial Statements
Separate fund financial statements are prepared for governmental funds, proprietary funds, and fiduciary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Only current assets, current liabilities, and deferred inflows are included on the Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 39 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, use of money and property, intergovernmental revenues, charges for current services, and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. However, debt service expenditures as well as expenditures related to compensated absences and claims are recorded only when payment is due.

Governmental Funds Financial Statements
Governmental Funds Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. Accompanying schedules are presented to reconcile and explain the differences in fund balances and changes in fund balances as presented in these statements to the net position and changes in net position presented in the government-wide financial statements. The City presents all major funds that meet those qualifications.

The City’s Governmental Fund Balances are comprised of the following components:
● Nonspendable fund balance includes amounts that are not in spendable form and typically includes inventories, prepaid items, and other items that by definition cannot be appropriated.
● The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
● The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the City Council. The City Council has authority to establish, modify, or rescind a fund balance commitment by formal action as specified by the City’s Fund Balance Policy. Commitments to fund balance are made through adoption of a resolution by City Council. ● Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. The City Manager or designee has the authority to establish, modify, or rescind a fund balance assignment as specified by the City’s Fund Balance Policy. ● Unassigned fund balance is the residual classification for the City’s General Fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance in other governmental funds is limited to any negative residual fund balance after fund balance has been classified as restricted, committed, or assigned.

City of Huntington Beach Annual Comprehensive Financial Report 2025 40Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) In the government-wide statements, the City considers restricted funds to be spent first then unrestricted amounts when expenditures are incurred for purposes for which unrestricted fund balance is available. In the governmental fund statements, when expenditures are incurred, the City uses the most restrictive funds first. The City would use the appropriate funds in the following order: committed, assigned, and lastly unassigned amounts.

The City establishes encumbrances to record the amount of purchase orders, contracts, and other obligations, which have not yet been fulfilled, cancelled, or discharged.

Encumbrances outstanding at year-end are recorded as part of committed or assigned fund balance.

Encumbrances outstanding as of June 30, 2025, by major fund (in thousands):

General Fund $ 10,191
Grants Special Revenue 11,098
LMIHAF Capital Projects 9
Infrastructure 17,073
Other Governmental Funds 16,012
Total Encumbrance All Funds $ 54,383
Economic Uncertainties Reserve
The City Council established an Economic Uncertainties Reserve in the General Fund through a resolution with a goal to commit the value of two months of the General Fund expenditure adopted budget amount. Appropriations from the Economic Uncertainties Reserve commitments can only be made by formal City Council action. Generally, appropriations and access to these funds will be reserved for emergency situations.

Examples of such emergencies include, but are not limited to:
● An unplanned, major event such as catastrophic disaster requiring expenditures over 5% of the General Fund adopted budget;
● Budgeted revenue in excess of $1 million taken by another government entity; ● Drop in projected/actual revenue of more than 5% of the General Fund adopted revenue budget; and,
● Should the Economic Uncertainties Reserve be used, and its level falls below the minimum amount of two months of General Fund expenditures adopted budget, the goal is to replenish the fund within three fiscal years.

Proprietary Fund Financial Statements
The City’s enterprise and internal service funds are proprietary funds. Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 41 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred inflows/outflows, and liabilities (whether current or non-current) are included on the Statement of Net Position. The Statement of Revenues, Expenses, and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

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

The internal service funds, which provide services to the other funds of the City, are presented in a single column in the proprietary funds financial statements. Because the principal users of the internal services funds are the City’s governmental activities, the assets and liabilities of the internal service funds are consolidated into the governmental activities column of the government-wide Statement of Net Position. The costs of the internal service fund services are spread to the appropriate function or program on the government-wide Statement of Activities and the revenues and expenses within the internal service funds are eliminated from the government-wide financial statements to avoid any doubling effect of these revenues and expenses.

Fiduciary Funds Financial Statements
Fiduciary Funds Financial Statements include a Statement of Net Position and a Statement of Changes in Net Position for Custodial and Trust Funds. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. The City’s fiduciary funds include Custodial and Trust Funds. Custodial Funds report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The Custodial Funds present results of operations and include net position.

Trust Funds present results of operations and include net position. The Retirement Supplemental Trust Fund accounts for the activities of the Supplemental Retirement Plan for all employees hired prior to 1997, which accumulates resources for pension benefits to qualified employees. Contributions are made to the Supplemental Plan based on the City’s policy to fund the required contributions as determined by the Plan’s actuary and are recognized when they are made. The Retiree Medical Insurance Trust Fund accounts for the activities of the City’s Other Post- Employment Benefits plans, which provide postemployment medical insurance to retirees.

The Huntington Beach Redevelopment Successor Agency Private Purpose Trust Fund accounts for the Successor Agency for the former Redevelopment Agency pursuant to Assembly Bill X1 26. Fiduciary funds are not presented in the government-wide financial statements because these funds do not represent net position available to the City.

City of Huntington Beach Annual Comprehensive Financial Report 2025 42Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) The City reports the following major funds:

Governmental Funds
General Fund - accounts for activity not required to be accounted for in another fund.

Grants Special Revenue - accounts for grant revenues received from federal, state, and local agencies restricted for related project expenditures.

LMIHAF Capital Projects - accounts for the activity related to the development of affordable housing.

Pension Liability Debt Service - accounts for the City’s contribution to its pension plan obligations, as provided by the voter-approved property tax override and other sources of revenue, including the allocable share from Enterprise Funds and Other Governmental Funds.

Infrastructure - accounts for expenditures related to certain designate infrastructure.

Proprietary Funds
Water Fund - used to account for water sales to customers.

Sewer Service Fund - accounts for user fees charged to residents and businesses for sewer service.

Refuse Fund - used to account for activities related to refuse collection and disposal.

Hazmat Service Fund - accounts for user fees charged for the City’s hazardous waste material program.

The City’s fund structure also includes the following fund types:

Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Internal Service Funds
Self Insurance Workers’ Comp Fund - accounts for the City’s self insurance workers’ compensation program in an internal service fund.

Self Insurance General Liability Fund - accounts for the City’s self insurance general liability program in an internal service fund.

Equipment Replacement Fund - accounts for the City’s equipment replacement needs in an internal service fund.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 43 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) Fiduciary Funds
Custodial Funds - are used to account for debt service activities related to the Parking Structure - Bella Terra and Community Facilities District conduit debt issues, in which the City acts as an agent, not as a principal. The Business Improvement District fund is used to account for taxes received and held until disbursement.

Pension Trust Fund - Retirement Supplemental Fund - accounts for the City’s supplemental retirement plan.

Huntington Beach Redevelopment Successor Agency Private Purpose Trust Fund - accounts for the Successor Agency of the former Redevelopment Agency in accordance with the State’s Dissolution Act.
d. Cash and Investments
The City pools cash resources of its various funds to facilitate cash management. Cash in excess of daily needs is invested and reported as investments. It is the City’s intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity, or yield of the portfolio. Interest earnings are apportioned among funds based on month-end cash and investment balances. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments, such as money market funds, and any investment with a maturity of 90 days or less at the time of purchase.

For financial reporting purposes, investments are adjusted to their fair value whenever the difference between fair value and the carrying amount is material.

Changes in fair value that occur during the fiscal year are recognized as investments income reported for that fiscal year. Investment income includes interest earnings, changes in fair value and any gains or losses realized upon the liquidation or sale of investments.

The City pools all non-restricted cash for investment purchases and allocates interest income to the funds based on month-end cash balances. Funds that have restricted cash record interest income in the respective fund.
e. Prepaid Items
Certain payments to vendors and individuals reflect costs applicable to a future accounting period and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items are recorded as expenditures/ expenses during the periods benefited.

City of Huntington Beach Annual Comprehensive Financial Report 2025 44Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) f. Capital Assets
Capital assets are tangible and intangible assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary funds financial statements. Capital assets have an acquisition cost of $50,000 or greater ($100,000 for infrastructure) and a useful life of one year or more.

The City records all purchased capital assets at historical cost (where historical records are available) and at estimated historical cost where no historical records exist. The reported value excludes normal maintenance and repairs, which are amounts spent in relation to capital assets that do not increase the asset’s capacity or efficiency or increase its estimated useful life. Donated capital assets are recorded at acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential on the date of the donation. Intangible assets follow the same capitalization policies as tangible capital assets and are reported with tangible assets in the appropriate capital asset class.

In the government-wide and proprietary funds financial statements, tangible and intangible property, plant, equipment, the right to use leased assets, and infrastructure are depreciated/amortized using the straight-line method over the estimated useful life of the assets as shown below and charged to the respective activity or fund. Land and construction in progress are not depreciated. No depreciation is recorded in the governmental funds of the fund financial statements.

Buildings 20 to 50 years
Machinery and Equipment 5 to 30 years
Infrastructure 50 Years
g. Leases
The City is a lessee for a noncancellable lease of equipment and property. The City recognizes a lease liability and an intangible right-to-use lease 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, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 45 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) 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) lease 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 lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease 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 assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

The City is a lessor for a noncancellable lease of a building, land, and infrastructure. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received.

The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
● The City uses its estimated incremental borrowing rate as the discount rate for leases. ● The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
h. Unearned Revenue
In the government-wide and the fund-level financial statements, unearned revenues are those where the asset recognition (availability criteria) has been met, but the revenue recognition criteria have not been met.

City of Huntington Beach Annual Comprehensive Financial Report 2025 46Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) i. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City reports deferred outflows related to pensions and OPEB which are the result of the implementation of GASB Statement Nos. 68 and 75.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City reported the following in this category:

1. Unavailable revenues (which include revenues, notes, and long-term receivables) measured under the modified accrual basis of accounting reported in governmental funds. These amounts are deferred and will be recognized as an inflow of resources in the period that the amounts become available.

2. Changes in the net pension liability not included in pension expense.

3. Changes in the net other postemployment benefits liability not included in OPEB expense.

4. Lease related deferrals
j. Inventories
Proprietary fund inventories are valued at weighted-average cost and consist of expendable supplies and repair parts. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. k. Interfund Transactions
As a general rule, interfund transactions have been eliminated from the government-wide financial statements. Exceptions to this rule are payments in-lieu or charges for current service between the City’s enterprise activities and the City’s governmental activities.

Elimination of these transactions would distort the direct costs and program revenues for the various functions. Certain eliminations have been made regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column.

Numerous transactions occur between funds of the City resulting in transfers and amounts due to or from other funds. Amounts due to or from are the current (due within one year) portion of monies that are to be paid or to be received from other funds.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 47 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) l. Long-Term Obligations
In the government-wide and proprietary funds financial statements, long-term obligations are recorded as liabilities in the applicable governmental activities, business-type activities, or proprietary fund-type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the debt. In the governmental fund financial statements, bond discounts and premiums are recognized as another financing source or use. Issuance costs are recorded as a current year debt service expenditure. m. Employee Compensated Absences
Effective July 1, 2024, the City adopted GASB Statement No. 101, Compensated Absences (GASB 101). In accordance with GASB 101, liabilities for compensated absences are recognized for : (a) leave that is attributable to services already rendered, (b) leave that accumulates, and (c) leave that is more likely than not to be used for the time off or otherwise paid in cash or settled through noncash means.

The City records the cost of all accumulated and unused leave time (general, sick, administrative, executive and comp) as a liability when earned in the government-wide and proprietary funds financial statements. In the governmental funds financial statements these amounts are recorded as expenditures when due and payable. n. Property Tax Revenue
Property tax in California is levied according to Article 13-A of the California Constitution.

The basic levy is a countywide-levy of one percent of total assessed valuation and is allocated to county governments, school districts, cities and special districts. Additional levies require two-thirds approval by voters and are allocated directly to the specific government.

In the government-wide financial statements, property tax is recorded when earned, regardless of when levied, due, or received. City property tax revenues are recognized when levied in the governmental funds to the extent that they result in current receivables collectible within 60 days after year-end.

The County acts as a collection agent for property tax for all of the local governmental units. Property taxes are normally collected twice per year. The property tax calendar is as follows:
● Lien Date, January 1 - Prior Fiscal Year
● Levy Date, July 1 - Levy Fiscal Year
● Due Date, First Installment - November 1
● Due Date, Second Installment - February 1
● Delinquent Date, First Installment - December 10
● Delinquent Date, Second Installment - April 10
City of Huntington Beach Annual Comprehensive Financial Report 2025 48Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) o. Redevelopment Property Tax Trust Funds
Under ABX1 26, revenues that were previously distributed to redevelopment agencies (prior to their dissolution) in the form of property tax increment will no longer be received.

Instead, revenues are deposited by County Auditors into Redevelopment Property Tax Trust Funds (RPTTF) created in the County Treasury for each Successor Agency. The County Auditor administers the RPTTF and disburses twice annually from this fund pass-through payments to affected taxing entities, an amount equal to the total of obligation payments that are required to be paid from tax increment as denoted on the Recognized Obligation Payment Schedules (ROPS) to Recognized Obligation Retirement Funds (RORF) established in the treasury of the Successor Agencies, and various allowed administrative fees and allowances. Any remaining balance is then distributed by the County Auditor back to affected taxing entities under a prescribed method that accounts for pass-through payments.

The calendar for distribution of RPTTF funds is as follows:
● Annual ROPS submission due to Department of Finance, February 1 ● Distribution of RPTTF to Successor Agencies for the July-December ROPS period, June 1
● Distribution of RPTTF to Successor Agencies for the January-June ROPS period, January 2
p. Cash Flow Statements
For purposes of the Statement of Cash Flows, the Proprietary Funds consider all cash and investments to be cash equivalents, as these funds participate in the citywide cash and investment pool.
q. Estimates
The accompanying financial statements require management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.
r. Pensions and OPEB
For purposes of measuring the net pension liability, net OPEB liability, related deferred outflows of resources and deferred inflows of resources, pension/OPEB expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS’ Financial Office and the City’s Defined Benefit Pension Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value. Net pension liability and OPEB liability has historically been liquidated through the General Fund, certain special revenue funds and proprietary funds, depending on the employees’ departmental assignments.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 49 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) GASB Statement Nos. 68 and 75 require reported results to pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Supplemental
Employee
Retirement Plan
CalPERS Pension
Plans
Other
Post-Employment
Benefit Plan
Valuation Date (VD) June 30, 2023 June 30, 2023 June 30, 2023 Measurement Date (MD) June 30, 2025 June 30, 2024 June 30, 2024 Measurement Period (MP)

July 1, 2024 to
June 30, 2025
July 1, 2023 to
June 30, 2024
July 1, 2023 to
June 30, 2024
s. Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
● Quoted prices for similar assets or liabilities in active markets; ● Quoted prices for identical or similar assets or liabilities in markets that are inactive; ● Inputs other than quoted prices that are observable for the asset or liability; ● Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data. t. Effects of New Pronouncements
As of July 1, 2024, the City implemented the following GASB Statements:

City of Huntington Beach Annual Comprehensive Financial Report 2025 50Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

1. Summary of Significant Accounting Policies (Continued) In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under the unified model and by amending certain previous required disclosures. See note 18 for the effects of implementation.

In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this statement is to provide information to users of government financial statements about risks that could impact a government’s financial health. The statement aims to improve the consistency and transactions. Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2025.

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements :

GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This statement also addresses certain application issues. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104, Disclosure of Certain Capital Assets. The objective of this statement is to establish requirements for certain types of capital assets to be disclosed separately for purposes of note disclosures, and to establish requirements for capital assets held for sale and note disclosures for those capital assets. The requirements of this statement are effective for the City’s financial statements for the year ending June 30, 2026.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 51 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

2. Cash and Investments
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code Section 53601 (or the City’s investment policy, where more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

INVESTMENT TYPE

MAXIMUM

MATURITY
MAXIMUM SPECIFIED % OF

PORTFOLIO / MAXIMUM PER
ISSUER

MINIMUM RATING

REQUIREMENTS
Bankers’ Acceptances 180 days
25% (up to 40% with Council
approval) / 10% A1/P1, “A” Rating
Negotiable Certificates of
Deposit
3 years (Up to 5
years with Council
approval) 30% / 10% A1/P1, “A” Rating
Commercial Paper 270 days 25% / 10% A1, “A” Rating
State Obligations-- CA And
Others 5 years None / 10% A Rating
City/Local Agency of CA
Obligations 5 years None / 10% A Rating
U.S. Treasury Obligations 5 years None None
U.S. Government Agency
Obligations 5 years None None
Supranationals: IBRD, IFC, IDB 5 years 30% AA Rating
Repurchase Agreements 3 Months None None
Reverse Repurchase Agreements 92 days
20% of the base value of the portfolio.

Requires City Council Approval None
Medium-Term Corporate Notes 5 years 30% / 10% A Rating
Non-negotiable Certificates of
Deposit 3 years None / 10% A1/P1, “A” Rating
Money Market Mutual Funds 60 days 15% / 10% AAA Rating
Local Agency Investment Fund
(LAIF) N/A Up to $75,000,000 None
Orange County Investment Pool
(OCIP) N/A Up to $75,000,000 None
Joint Powers Authority N/A None / $75,000,000 See 10.0N of IPS City of Huntington Beach Annual Comprehensive Financial Report 2025 52Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

2. Cash and Investments (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by a bond trustee, but bond indentures do allow for other forms of investments if approved in writing by the bond insurer that are not identified below. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.

Authorized Investment Type Maximum Maturity
Maximum
Percentage of
Portfolio
Maximum Investment
in One Issuer
U.S. Treasury Securities 5 Years No Limit No Limit
Federal Agency Securities 5 Years No Limit No Limit
Bankers’ Acceptances 180 Days No Limit No Limit
Time CDs 360 Days No Limit No Limit
Negotiable CDs 360 Days No Limit No Limit
LAIF N/A No Limit No Limit
Commercial Paper 270 Days No Limit No Limit
Municipal Bonds from Any State Life of Bond No Limit No Limit Money Market Funds N/A No Limit No Limit
Investment Agreements Life of Bond No Limit No Limit
Corporate Bonds 5 Years No Limit No Limit
California Asset Mgmt. Program N/A No Limit No Limit
Forward Purchase/Delivery
Agreements Life of Bond No Limit No Limit
Annual Comprehensive Financial Report 2025 City of Huntington Beach 53 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

2. Cash and Investments (Continued)
Investment of the Pension Trust Fund - Retirement Supplemental Fund The Investment Policy Statement (IPS) of the Huntington Beach Supplemental Pension Trust is established in accordance with the assignment of fiduciary duties by the State of California Constitution and State and Local Government Codes. The purpose of the Investment Policy is to set guidelines for a prudent investment-making process. The policy was established with the assumption that the longer-term nature of the portfolio provides for higher risk tolerance and short-term volatility, but more potential for capital growth. The Investment Manager will be responsible for carrying out the activities related to the portfolio in accordance with the IPS to meet the goals of an agreed upon risk/return profile, and in accordance with the mix of parameters outlined below:

Authorized Investment Type
Minimum
Allocation
Target Asset
Allocation
Maximum
Allocation
Cash or Equivalents 0% 0% 10%
Money Market 0% 0% 10%
Fixed Income 32% 42% 52%
Intermediate Bond 32% 42% 52%
Short-Term Bond 0% 0% 10%
Long-Term Bond 0% 0% 10%
High Yield Bond 0% 0% 10%
Inflation Protected Bond 0% 0% 10%
World Bond 0% 0% 10%
Domestic Equity 18% 28% 38%
Large Cap Equity (Value, Blend, Growth) 9% 19% 29%
Mid Cap Equity (Value, Blend, Growth) 0% 6% 16%
Small Cap Equity (Value, Blend, Growth) 0% 3% 13%
Foreign Equity 12% 22% 32%
Foreign Large Equity (Value, Blend, Growth) 8% 18% 28%
Foreign Sm / Mid Equity (Value, Growth) 0% 0% 10%
Emerging Markets 0% 4% 14%
Real Estate 0% 2% 12%
Real Estate 0% 2% 12%
Commodities 0% 2% 12%
Natural Resources 0% 2% 12%
At year-end, the City had the following deposits and investments (amounts in thousands):

Primary Government:

Cash and Investments $ 465,221
Cash and Investments with Fiscal Agent 3,047
Total Primary Government 468,268
Fiduciary Funds:

Cash and Investments 11,597
Cash and Investments with Fiscal Agent 72,190
Total Fiduciary Funds 83,787
Total Deposits and Investments $ 552,055
City of Huntington Beach Annual Comprehensive Financial Report 2025 54Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

2. Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments, including investments held by bond trustees, to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity (in thousands).

Investment Maturities (In Years)
INVESTMENTS: Fair Value Less than 1 1 to 3 3 to 5 Total US Treasuries $ 85,673 $ 14,933 $ 40,551 $ 30,189 $ 85,673 US Agency Securities* 151,859 62,628 52,792 36,439 151,859 Mutual Funds 71,438 71,438 - - 71,438
Money Market Funds 21,825 21,825 - - 21,825
Medium Term Notes - IADB 60,178 14,805 25,241 20,132 60,178 Corporate Bonds 77,697 20,879 46,592 10,226 77,697 California Asset Mgmt Program 49,130 49,130 - - 49,130 PARS Pension Rate Stabilization
Program 25,956 25,956 - - 25,956
Total Investments $ 543,756 $ 281,594 $ 165,176 $ 96,986 543,756 Total Deposits 8,299

Total Deposits and
Investments $ 552,055
* Security is callable, but classified above according to original maturity date Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below are the minimum ratings required by, where applicable, the California Government Code or the City’s investment policy, or debt agreements, and the actual rating as of the year-end for each investment type (in thousands):

Minimum
Legal
Rating
Remaining as of Year End
INVESTMENTS: Total AAA AA A Not Rated
US Treasuries N/A $ 85,673 $ 85,673 $ - $ - $ - US Agency Securities* N/A 151,859 151,859 - - - Mutual Funds N/A 71,438 - - - 71,438
Money Market Funds AAA 21,825 21,825 - - -
Medium Term Notes - IADB AA 60,178 - 60,178 - - Corporate Bonds A 77,697 - 19,014 58,683 -
California Asset Mgmt Program N/A 49,130 49,130 - - - PARS Pension Rate
Stabilization Program N/A 25,956 - - - 25,956 Total Investments $ 543,756 $ 308,487 $ 79,192 $ 58,683 $ 97,394 Note: All US Agencies are rated AAA by Moody’s and AA by S&P Annual Comprehensive Financial Report 2025 City of Huntington Beach 55 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

2. Cash and Investments (Continued)
Concentration of Credit Risk
The City’s investment policy limits investments in any one issuer, except for U.S. Treasury Securities, U.S. Government Agencies and the Local Agency Investment Fund, to no more than 10% of the portfolio. In addition, no more than 50% can be invested in a single security type or with a single financial institution and every security type has a specific limit. This is in addition to the limits placed on investments by State law. Investments in any one issuer (other than U.S. Treasury Securities, external investment pools, or Money Market Funds) that represent 5% or more of the City’s total investments are as follows (in thousands):

Issuer Investment Type
Fair Value
Amount
Federal Home Loan Bank
U.S. Government Sponsored Enterprise
Securities $ 95,585
Int’l Bank for Recon &
Development Supranational Securities $ 34,789
U.S. Treasury Notes Obligations of the United States Treasury $ 85,673 Fannie Mae
U.S. Government Sponsored Enterprise
Securities $ 22,994
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provisions for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits. As of June 30, 2025, the City’s deposits with financial institutions were covered by FDIC up to $250,000, and the remaining amounts were collateralized as described above.

None of the City’s investments were subject to custodial credit risk. Per the Investment Policy’s statement, the City of Huntington Beach is the registered owner of all investments in the portfolio.

City of Huntington Beach Annual Comprehensive Financial Report 2025 56Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

2. Cash and Investments (Continued)
Investment in California Asset Management Program Pool
The City is a voluntary participant in the California Asset Management Program (CAMP).

CAMP is an investment pool offered by the California Asset Management Trust (the Trust).

The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds.

The Trust’s activities are directed by a Board of Trustees, all of whom are employees of the California public agencies which are participants in the Trust. The City reports investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share. The Pool is managed to maintain a dollar-weighted average portfolio maturity of 60 days or less and seeks to maintain a constant net asset value (NAV) per share of $1.00. The Pool invests in obligations of the United States Government and its agencies, high-quality, short-term debt obligations of U.S. companies and financial institutions. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).

Investment in Public Agency Retirement Services Pension Rate Stabilization Program The City established a Section 115 pension trust account within the Public Agency Retirement Services Pension Rate Stabilization Program (PARS PRSP) to hold assets that are legally restricted for use in administering the City’s defined benefit pension plan. The pension trust fund’s specific cash and investments are managed by a third-party portfolio manager under guidelines approved by the City.

Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. The City has the following recurring fair value measurements as of June 30, 2025 (in thousands):

Fair Value Hierarchy
INVESTMENTS: Level 1 Level 2 Level 3 Total
U.S. Treasuries $ - $ 85,673 $ - $ 85,673
U.S. Agency Securities - 151,859 - 151,859
Mutual Funds - 71,438 - 71,438
Medium Term Notes - IADB - 60,178 - 60,178
Corporate Bonds - 77,697 - 77,697
Total Investments $ - $ 446,845 $ - $ 446,845
Annual Comprehensive Financial Report 2025 City of Huntington Beach 57 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

3. Other Receivables
A summary of Other Receivables as of June 30, 2025 is as follows (in thousands):

Description
FY2024-25
Amount
Developer Loans Receivable $ 39,135
Emerald Cove Loan Receivable 5,832
Housing Rehabilitation Loans Receivable 1,742
First Time Homebuyers Receivable 1,563
Emergency Medical Fee Receivable 3,261
CDBG Program Receivable 173
Other Grants Receivable 7,183
Other Receivable 8,145
Total Other Receivables 67,034
Allowance for Uncollectible Developer Loans (39,135)
Net Other Receivables on Governmental Fund Financial
Statements $ 27,899

Other Receivables Reconciliation
Net Receivable on Government-wide Financial Statements $ 43,339 Taxes Receivable on Governmental Fund Financial Statements (14,880) Other Receivables on Internal Service Fund (560)
Net Other Receivables on Governmental Fund Financial
Statements $ 27,899
a. Developer Loans
Loans made to developers to construct or rehabilitate certain facilities under deferred loan agreements total $39,135,000 at year-end. These loans are allowed until a future event occurs. Loans to the Low and Moderate Income Housing Asset Fund total $21,493,000, loans made under the Home Program total $15,340,000 and loans made under the Affordable Housing In-Lieu Program total $2,302,000. Interest rates on these loans range from 0% to 10%. The allowance for uncollectible developer loans is negative $39,135,000 due to the terms of the agreement to forgive the balance of loans after a specified time period if all the conditions of loan forgiveness are met. b. Emerald Cove Loan
On June 15, 2010, the former Redevelopment Agency loaned Emerald Cove, LP $8,000,000 to acquire and rehabilitate Emerald Cove Senior Apartments. The loan has an interest rate of 3% and is to be repaid annually from residual receipts over 60 years.

The loan was transferred to the Low and Moderate Income Housing Asset Fund in Fiscal Year 2011/12. The loan balance as of June 30, 2025 is $5,832,000. c. Housing Rehabilitation Loans
Loans made to qualified homeowners and landlords in the City of Huntington Beach to rehabilitate certain single-family homes or multifamily rental housing under deferred loan agreements total $1,742,000 at year-end. These loans are deferred until a future event occurs. The interest rates on these loans range from 0% to 6%.

City of Huntington Beach Annual Comprehensive Financial Report 2025 58Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

3. Other Receivables (Continued)
d. Deferred Loans - First Time Homebuyers and Down Payment Assistance Loans made for down payment assistance of qualified first time homebuyers under deferred loan agreements total $1,563,000 at year-end. These loans are deferred until a future event occurs.

4. Unearned Revenue
Governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of year-end, but not yet earned (unearned revenue). The amounts are as follows (in thousands):

General Fund
Grants Special
Revenue
Total Unearned
Revenue
Community Services Unearned Revenue (Classes) $ 1,178 $ - $ 1,178 Grants - 3,039 3,039
Total $ 1,178 $ 3,039 $ 4,217

5. Unavailable Revenue
Certain revenues in governmental funds are considered unavailable revenue until received.

All revenues including property and sales tax are recognized in the year earned or levied in the government-wide financial statements but are recorded as unavailable revenue in the fund financial statements to the extent they are not collected within 60 days after year-end.

The amounts are as follows (in thousands):

General Fund
Grants Special
Revenue LMIHAF
Other
Governmental
Funds
Total
Unavailable
Revenue
Grants $ - $ 4,842 $ - $ - $ 4,842
Deferred Loans:

Emerald Cove - - 5,832 - 5,832
Housing Rehabilitation - 1,742 - - 1,742
First Time Homebuyers - - 1,563 - 1,563
Waterfront 18,032 - 4,508 - 22,540
Other Unavailable Revenue 1,255 - - 1,454 2,709 Total $ 19,287 $ 6,584 $ 11,903 $ 1,454 $ 39,228 Deferred Loans to developers and qualified individuals for housing rehabilitation and to first time homebuyers are discussed in Note 3.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 59 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
a. Summary
Net Pension Liability/(Asset)

Net Pension Liability/(Asset) is reported in the accompanying statement of net position as follows:

Net Pension
Liability/(Asset)
CalPERS Miscellaneous Plan $ 67,789
CalPERS Safety Plan 112,915
Supplemental Plan (Note 7) (4,760)
Total $ 175,944
Deferred Outflows of Resources
Deferred Outflows of Resources are reported in the accompanying statement of net position as follows:

Change to Net
Difference
Between
Projected
and Actual
Investment
Earnings
Changes in
assumptions
Differences
between
Expected
and Actual
Experience
Deferred
employer
pension
contributions
made after
measurement
date Total
CalPERS
Miscellaneous Plan $ 13,643 $ - $ 4,225 $ 7, 828 $ 25,696 CalPERS Safety Plan 19,442 7,723 13,856 15,704 56,725 Total $ 33,085 $ 7,723 $ 18,081 $ 23,532 $ 82,421
Deferred Inflows of Resources
Deferred Inflows of Resources are reported in the accompanying statement of net position as follows:

Change to Net
Difference Between
Projected and Actual
Investment Earnings Total
Supplemental Plan (Note 7) 2,462 2,462
Total $ 2,462 $ 2,462
City of Huntington Beach Annual Comprehensive Financial Report 2025 60Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
Pension expenses for the measurement period ending June 30, 2024 (the measurement date), are included in the accompanying financial statements as follows:

Net Pension
Expense/(Income)
CalPERS Miscellaneous Plan $ 23,021
CalPERS Safety Plan 38,095
Supplemental Plan (Note 7) (482)
Total $ 60,634
b. Plan Description
Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Safety Plan and Miscellaneous Plan Agent multiple- employer defined benefit plans administered by California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee’s Retirement Law. Following the passage of AB340, Public Employees’ Pension Reform Act (PEPRA) by the California Legislature, employees hired on or after January 1, 2013, who were not previously enrolled in the PERS system elsewhere, or who have had a break in service of at least six months are required to be enrolled in this retirement program which provides a benefit level that is lower than the benefits provided for CalPERS employees that do not meet the PEPRA qualifications previously described. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Copies of the CalPERS annual financial report may be obtained from the CalPERS Executive Office - 400 P Street, Sacramento, CA 95814.

Benefits Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Benefit provisions and all other requirements are established by State statute and may be amended by city contracts with employee bargaining groups.

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. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50 percent of final compensation.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 61 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
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 preretirement 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.

The Plans’ provisions and benefits in effect at June 30, 2025 are summarized as follows:

Miscellaneous Agent Plans
Classic PEPRA
Hire date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age minimum 50 years minimum 52 years
Monthly benefits, as a % of eligible
compensation

2.0% - 2.5%, 50 years - 63+
years, respectively

1.0% - 2.5%, 52 years - 67+
years, respectively
Required employee contribution rates 8.000% 7.250%
Required employer contribution rates
July 1, 2024 - June 30, 2025 11.060% 11.060%
Safety Agent Plans
Classic PEPRA
Hire date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age minimum 50 years minimum 52 years
Monthly benefits, as a % of eligible
compensation 3%, 50+ years

2.0% - 2.7%, 50 years - 57+
years, respectively
Required employee contribution rates 9.00% 12.5%/13.00% (Fire PEPRA) Required employer contribution rates
July 1, 2024 - June 30, 2025 21.910% 21.910%
City of Huntington Beach Annual Comprehensive Financial Report 2025 62Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
c. Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL ”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024, miscellaneous participants under the Classic and PEPRA plans are required to contribute 8.00% and 7.25% of their annual covered salary, respectively. Safety participants under the Classic and PEPRA plans are required to contribute 9.00% and 12.5%/ of their annual covered salary, respectively. Fire PEPRA participants are now required to contribute 13.00%. In addition, the City is required to make employer contributions at the actuarially determined rates of 11.06% and 21.91% for the miscellaneous and safety plans, respectively, for the period July 1, 2024 through June 30, 2025.

At June 30, 2023, the valuation date, the following employees were covered by the benefit terms for each Plan:

Miscellaneous Safety
Active members 617 359
Transferred members 546 80
Terminated members 443 83
Retired members and beneficiaries 1127 682
d. Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is illustrated below:

Annual Comprehensive Financial Report 2025 City of Huntington Beach 63 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
Actuarial Assumptions - The total pension liability in the June 30, 2023 actuarial valuation, rolled forward to June 30, 2025 using standard update procedures, were determined using the following actuarial assumptions:

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Mortality Rate Table* Derived using CalPERS’ membership data for all funds Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
*The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019.

Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

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

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

City of Huntington Beach Annual Comprehensive Financial Report 2025 64Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
The expected real rates of return by asset class are as follows:

Asset Class (1)
Assumed asset
Allocation Real Return (1,2)
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

Discount Rate - The discount rate used to measure the total pension liability was 6.90%.

The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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

Annual Comprehensive Financial Report 2025 City of Huntington Beach 65 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
e. Changes in the Net Pension Liability/(Asset)
The following table shows the changes in net pension liability/(asset) recognized over the measurement period:

Miscellaneous Plan

Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
(Asset)
Balance at June 30, 2023 (Valuation Date) $ 679,952 $ 607,044 $ 72,908 Changes in the year:

Service cost 9,364 - 9,364
Interest on the total pension liabilities 46,276 - 46,276 Differences between expected and actual
experience 5,289 - 5,289
Benefit payments, including refunds of
members contributions (38,523) (38,523) -
Contributions - employer - 5,808 (5,808)
Contributions - employee - 4,090 (4,090)
Net investment income - 56,644 (56,644)
Administrative expenses - (494) 494
Net changes 22,406 27,525 (5,119)
Balance at June 30, 2024 (Measurement Date) $ 702,358 $ 634,569 $ 67,789 Safety Plan

Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
(Asset)
Balance at June 30, 2023 (Valuation Date) $ 921,228 $ 804,904 $ 116,324 Changes in the year:

Service cost 15,083 - 15,083
Interest on the total pension liabilities 63,005 - 63,005 Differences between expected and actual
experience 10,024 - 10,024
Benefit payments, including refunds of
members contributions (51,355) (51,355) -
Contributions - employer - 11,525 (11,525)
Contributions - employee - 5,482 (5,482)
Net investment income - 75,169 (75,169)
Administrative expenses - (655) 655
Net changes 36,757 40,166 (3,409)
Balance at June 30, 2024 (Measurement Date) $ 957,985 $ 845,070 $ 112,915 City of Huntington Beach Annual Comprehensive Financial Report 2025 66Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate - The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension 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:

Plan’s Aggregate Net Pension Liability/(Asset)

Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate + 1%
(7. 90%)
Miscellaneous Plan $ 158,464 $ 67,789 $ (6,730)
Safety Plan 240,107 112,915 8,877
Aggregate Total $ 398,571 $ 180,704 $ 2,147
Pension Plan Fiduciary Net Position - Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Pension Income and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2023), the net pension liability was $72,908,000 for the Miscellaneous Plan and $116,324,000 for the Safety Plan. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $23,021,000 and $38,095,000 for the Miscellaneous and Safety Plans, respectively.

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 of active employees by the total number of plan participants (active, inactive, and retired) in the risk pool. For the 2023-24 measurement period, the EARSL for each plan is as follows:

Miscellaneous Safety
Expected Average Remaining Service Lifetime 2.5 3.8 At June 30, 2025 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan

Deferred
outflows of
Resources
Deferred inflows
of Resources
Difference between projected and actual earning on
pension plan investments $ 13,643 $ -
Difference between expected and actual experience 4,225 - Contributions made subsequent to the measurement date 7, 828 - Total $ 25,696 $ -
Annual Comprehensive Financial Report 2025 City of Huntington Beach 67 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

6. Retirement Plan - Normal (Continued)
Safety Plan

Deferred
outflows of
Resources
Deferred inflows
of Resources
Difference between projected and actual earning on
pension plan investments $ 19,442 $ -
Changes in assumptions 7,723 -
Difference between expected and actual experience 13,856 - Contributions made subsequent to the measurement date 15,704 - Total $ 56,725 $ -
For the Miscellaneous Plan and Safety Plan, $7,828,000 and $15,704,000, respectively, was reported as deferred outflows of resources related to pensions resulting from City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement Periods
Ended June 30,
Deferred Outflows / (Inflows) of Resources
Miscellaneous Safety
2025 $ 5,585 $ 17, 877
2026 17,777 28,291
2027 (2,331) (977)
2028 (3,162) (4,170)
$ 17,869 $ 41,021
City of Huntington Beach Annual Comprehensive Financial Report 2025 68Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

7. Retirement Plan - Supplemental
a. Plan Description and Benefits
The City administers a supplemental single-employer defined benefit retirement plan (Supplemental Plan) for all employees hired prior to 1997 (exact dates are different for various associations). The Plan is governed by a three-member Supplemental Employee Retirement Plan and Trust Board consisting of the City Treasurer, Chief Financial Officer, and the City Manager, or his/her designee. The Board has the authority, under the terms of the Trust agreement, to control and manage the operation and administration of the Plan.

Benefit provisions are established and may be amended through negotiations between the City and employee bargaining associations during each bargaining period, which are then approved through resolutions of the City Council. In Fiscal Year 2008/09, the City established the Supplemental Employee Retirement Plan and Trust, and transferred $24,918,000 to an irrevocable trust from the prefunded amounts. The plan and trust are reported as a pension trust fund in the City’s financial statements on a full accrual basis.

The Supplemental Plan will pay the retiree an additional amount to his or her CalPERS retirement benefit for life. In order to be eligible for the benefit, the retiree must retire from the City. The amount that is computed as a factor of an employee’s normal retirement allowance is computed at retirement and remains constant for his or her life. This benefit is payable by the City for the duration of the life of the member, and shall cease upon the employee’s death. As of June 30, 2023, the date of the Plan’s most recent actuarial valuation, the average monthly benefit received by inactive plan members and beneficiaries receiving benefits is $675. Effective in 1998 (exact dates are different for various associations), new City employees are ineligible to participate in the Supplemental Employee Retirement Plan.

Employees Covered: At June 30, 2025, the measurement date, the following employees were covered by the benefit terms for the Plan:

Inactive employees receiving benefits 717
Active employees 36
Total 753
b. Employer Contributions
The City’s policy is to make required contributions as determined by the Supplemental Plan’s actuary. The required contributions were determined as part of the June 30, 2023 actuarial valuation. The City is required to contribute the actuarially determined rate of 3.6% of total payroll for all permanent employees for the year ended June 30, 2025. There are no employee contributions required for the plan. Survivor and termination benefits are not included in the plan. Administrative costs of this plan are financed through investment earnings.

For the year ended June 30, 2025, the contributions were (in thousands):

Contributions - employer $ 6,120
Annual Comprehensive Financial Report 2025 City of Huntington Beach 69 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

7. Retirement Plan – Supplemental (Continued)
c. Investments
Investments of the Supplemental Plan are held separately from those of other City funds by investment custodians. The Supplemental Employee Retirement Plan and Trust Board is responsible for supervising all investments. Changes to the Investment Policy require approval by the Board. The policy remained the same as last fiscal year. The most recent policy was reviewed in June 2025 with an effective date of July 1, 2025. Please refer to Note 2 for a detailed description of the Supplemental Plan’s Investment Policy. The major asset class allocation for the Supplemental Plan as of June 30, 2025 is listed below:

Asset Class Strategic Allocation
Allocation as of June
30,2025
Long-Term Expected
Rate of Return
Fixed Income 42.00% 39.52% 1.85%
Equities 50.00% 57. 80 % 5.78%
Real Estate 2.00% -% 9.36%
Commodities 2.00% -% 5.31%
Cash and Equivalents -% 2.68% 0.76%
Total 96.00% 100.00%
Quoted market prices have been used to value investments as of June 30, 2025. These investments are held by the Trust or by an agent in the Trust’s name. A portion of these investments is subject to credit risk (including custodial credit risk and concentrations of credit risk), interest rate risk and/or foreign currency risk. GASB Statement No. 40 requires the disclosure of such risk. Please see below for a list of investments held in any one organization that represents five percent or more of the Plan’s investment portfolio at June 30, 2025:

Concentration of Investments Equaling or Exceeding 5%
Fidelity 500 Index Fund 20.20%
Vanguard FTSE 18.95%
Baird Aggregate Bond Fd Instl 10.22%
Dodge Cox Income 5.28%
Fidelity US Bond Index 21.18%
All Supplemental Plan investments are reflected in the schedule included in Section c of the Note, with the exception of amounts held in the City’s investment pool account.

The City maintains an investment pool account for City funds. Monthly contributions for the Plan are held in the City’s investment pool account and are used to pay recurring expenditures. Refer to Note 2 for a description of the City’s investments.

For the Fiscal Year ended June 30, 2025, the annual money-weighted rate of return on the Plan’s investments, net of pension plan investment expenses, was 11.19%. The money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for the changing amounts actually invested.

City of Huntington Beach Annual Comprehensive Financial Report 2025 70Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

7. Retirement Plan – Supplemental (Continued)
d. Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2025, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2025 using standard update procedures. A summary of principal assumptions and methods used to determine the City’s net pension liability is shown on the following page.

Actuarial Assumptions - The total pension liabilities in the June 30, 2023 actuarial valuations for the June 30, 2025 measurement date were determined using the following actuarial assumptions:

Actuarial Methods and Assumptions Used to Determine Total Pension Liability Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll Actuarial Assumptions:

Discount Rate 5.75%
Inflation 2.50%
Salary Increases
CalPERS 2000-2019 Experience Study plus 2.75% aggregate increase
Investment Rate of Return 5.75% Net of Investment Expenses Mortality Rate Table CalPERS 2000-2019 Experience Study, mortality projected fully generational with Scale MP-2021
Retirement, Disability,
Withdrawal
CalPERS 2000-2019 Experience Study plus 23% load on future service retirement liability added to reflect recent benefits experience.

The changes in actuarial assumptions include the following:

All other actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study for the period from 2000 to 2019, including updates to salary increase, mortality, and retirement rates. The future service retirement liabilities load increased from 15% to 23% to reflect recent experience of benefits being larger than anticipated.
e. Discount Rate & Sensitivity
The discount rate is used in the measurement of the Total Pension Liability. This rate considers the ability of the fund to meet benefit obligations in the future. To make this determination, employee contributions, benefit payments, expenses, and investment returns are projected into the future. The Plan Net Position (assets) in future years can then be determined and compared to its obligation to make benefit payments in those years. As long as assets are projected to be on hand in a future year, the assumed valuation discount is used. For this valuation, the discount rate is 5.75%, based on the inflation assumption of 2.50% and a long-term asset allocation of 70% equities and 30% fixed income.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 71 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

7. Retirement Plan – Supplemental (Continued)
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. An investment return excluding administrative expenses would have been 5.75 percent.

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, both short-term and long-term market return expectations were taken into account along with expected pension 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.

Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period (in thousands):

Supplemental Plan

Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance at June 30, 2024 $ 70,356 $ 66,137 $ 4,219 Changes in the year:

Service cost 151 - 151
Interest on the total pension liabilities 3,889 - 3,889 Benefit payments, including refunds of
members contributions (5,743) (5,743) -
Contributions - employer - 6,120 (6,120)
Net investment income - 7,276 (7,276)
Administrative expenses - (377) 377
Net changes (1,703) 7,276 (8,979)
Balance at June 30, 2025 $ 68,653 $ 73,413 $ (4,760) City of Huntington Beach Annual Comprehensive Financial Report 2025 72Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

7. Retirement Plan – Supplemental (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the City’s net pension liability, calculated using the discount rate, as well as what the City’s net pension 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:

Plan’s Aggregate Net Pension Liability/(Asset)
(in thousands)
Discount Rate -1%
(4.75%)
Current Discount
Rate (5.75%)
Discount Rate +1%
(6.75%)
$ 1,486 $ (4,760) $ (10,132)
f. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2025, the City recognized pension income in the amount of $482,000 for the Supplemental Plan.

At June 30, 2025, the City reported deferred inflows of resources related to the supplemental pension plan from the following source (in thousands):

Deferred Inflows
of Resources
Difference between projected and actual earnings on
pension plan investments $ 2,462
For the Supplemental Plan, $2,462,000 was reported as deferred inflows of resources related to pensions which will be recognized in pension expense as follows (in thousands):

Year Ended June 30,
Deferred Outflows/
(Inflows) of of
Resources
2026 $ 1,312
2027 (1,698)
2028 (1,383)
2029 (693)
$ (2,462)

8. Other Post Employment Benefits
a. Plan Description
The City administers the following two other post employment benefit (OPEB) plans:

Postemployment Medical Insurance
The City agreed, via contract, with each employee association to provide postemployment medical insurance to retirees. These Other Postemployment Benefits (OPEB) are based on years of service and are available to all retirees who meet all three of the following criteria:
● At the time of retirement, the employee is employed by the City.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 73 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

8. Other Post Employment Benefits (Continued)
● At the time of retirement, the employee has a minimum of ten years of service credit or is granted a service connected disability retirement. ● Following official separation from the City, CalPERS grants a retirement allowance.

The City’s obligation to provide the benefits to a retiree ceases when either of the following occurs:
● During any period the retiree is eligible to receive health insurance at the expense of another employer; and/or
● The retiree becomes eligible to enroll automatically or voluntarily in Medicare.

The subsidy a retiree is entitled to receive is based on the retiree’s years of service credit and is limited to $344 per month after 25 years of service. If a retiree dies, the benefits that would be payable for his or her insurance are provided to the spouse or family for 12 months. The retiree may use the subsidy for any of the medical insurance plans that the City’s active employees may enroll in. Employees hired on or after October 1, 2014 are not eligible for this benefit.

PEMHCA
The City provides an agent multiple-employer defined benefit healthcare plan to retirees through CalPERS under the California Public Employees Medical and Hospital Care Act (PEMHCA), commonly referred to as PERS Health. PEMHCA provides health insurance through a variety of Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) options. The PEMHCA benefits are applied to all safety employee groups, based on retirement plan election. The benefits continue to the surviving spouse for one year. The Huntington Beach Firefighters’ Association (HBFA) joined PEMHCA in 2011. All other safety groups -Fire Management Association (FMA), Marine Safety Management Association (MSOA), Police Management Association (PMA), and Police Officers’ Association (POA) - joined in 2004.

Safety employees are eligible for PEMHCA benefits if they retire from the City on or after age 50 with at least five years of service or disability, and are eligible for a PERS pension.

As of the June 30, 2024 measurement date, the following current and former employees were covered by the benefit terms under the plan:

Postemployment
Medical Insurance PEMHCA
Retirees and beneficiaries receiving benefits 281 210 Inactive employees not yet receiving benefits 383 - Active Plan Members 846 320
Total Plan Participants 1,510 530
City of Huntington Beach Annual Comprehensive Financial Report 2025 74Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

8. Other Post Employment Benefits (Continued)
b. Accounting and Funding
The City utilizes the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple- employer plan, for the postemployment medical insurance benefit. Benefits paid from the CERBT were $838,000 for year ended June 30, 2025. The assets of the CERBT are excluded from the accompanying financial statements since they are in an irrevocable trust administered by CalPERS. Copies of CalPERS’ annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA, 95814 or on their website: www.calpers.ca.gov. The City’s policy is to make 100% of each year’s ARC, with an additional amount to prefund benefits as determined annually by City Council in order to improve the funded status of the plan.

For PEMHCA, the City selected the “unequal” method for the contribution. Under this method, the City offered a lesser contribution for retirees than for active employees. The City paid the PEMHCA minimum for actives ($143 in 2021, $149 in 2022, $151 in 2023 and $157 in 2024). Beginning in 2008, Assembly Bill 2544 changed the computation for annual increases to annuitant health care under the unequal method. Under the new provisions, the City increases annuitant health care contributions equal to an amount not less than five percent of the active employee contributions, multiplied by the number of years in PEMHCA. The City’s contribution for retirees is $110.60 per employee for the Huntington Beach Firefighter’s Association (HBFA) and $158.00 for all other Safety groups in 2025.

The annual increase in minimum PEMHCA contribution to CalPERS will continue until the time that the City contribution for retirees equals the City contribution paid for active employees.

The City’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial methods and assumptions:
● Actuarial Cost Method - Entry Age Normal
● Discount rate - 5.75%
● Projected salary increases for covered employees due to inflation - aggregate increases of 2.75% per annum
● Investment Rate of Return - 5.75%, assuming actuarially determined contributions funded into CERBT Investment Strategy 2
● Mortality Rate1 - Derived using CalPERS’ membership data for all funds ● Pre-Retirement Turnover2 - Derived using CalPERS’ membership data for all funds ● PEMHCA minimum increases for actives - $157 in 2025, with 3.50% annual increases thereafter
Annual Comprehensive Financial Report 2025 City of Huntington Beach 75 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

8. Other Post Employment Benefits (Continued)
● Healthcare Trend Rate - The medical trend rate represents the long-term expected growth of medical benefits paid by the plan, due to non-age-related factors such as general medical inflation, utilization, new technology, and the like. The following table sets forth the inflation trend assumption used for the valuation:

Calendar
Year
Annual Rate
Calendar
Year
Annual Rate

Non -
Medicare
Medicare
Kaiser
Medicare
Other
Non -
Medicare
Medicare
Kaiser
Medicare
Other
2025 Actual Premiums 2031 5.05% 4.65% 4.85%
2026 7. 9 0 % 5.65% 6.90% 2032-38 4.45% 4.45% 4.45% 2027 7. 35% 5.45% 6.50% 2039-40 4.35% 4.35% 4.35% 2028 6.75% 5.25% 6.10% 2041-2075 4.30% 4.30% 4.30% 2029 6.20% 5.05% 5.70% 2076+ 3.45% 3.45% 3.45%
2030 5.60% 4.85% 5.25%

(1) Mortality information was derived from data collected during 2000 to 2019 CalPERS Experience Study released in 2021, which may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. Post-retirement mortality rates include mortality projected fully generational with Scale MP-21.
(2) The pre-retirement turnover information was developed based on CalPERS’ specific data. For more details, please refer to the 2000 to 2019 Experience Study Report. The Experience Study Report may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications.

Long-Term Expected Rate of Return
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which 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:

CERBT Strategy 2
Asset Class Target Allocation
Long-Term
Expected Real
Rate of Return
Global Equity 34% 4.56%
Fixed Income 41% 1.56%
Treasury Inflation-Protected Securities (“TIPS”) 5% (0.08%) Commodities 3% 1.22%
Real Estate Investment Trusts (“REITS”) 17% 4.06%
Total 100%
* Long-term expected rate of return is 5.75%
City of Huntington Beach Annual Comprehensive Financial Report 2025 76Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

8. Other Post Employment Benefits (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 5.75 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

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.

The changes in the net OPEB Liability/(Asset) for the plan are as follows (in thousands):

Increase / (Decrease)

Total OPEB
Liability (a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability /
(Asset) (c) =
(a) - (b)
Balance at June 30, 2024 $ 27,630 $ 32,837 $ (5,207) (Measurement Date June 30, 2023)
Changes recognized for the measurement
period:

Service Cost 970 - 970
Interest 1,593 - 1,593
Contributions - Employer - 935 (935)
Net Investment Income - 2,693 (2,693)
Benefit Payments (1,800) (1,800) -
Administrative Expenses - (145) 145
Net Changes 763 1,683 (920)
Balance at June 30, 2025 $ 28,393 $ 34,520 $ (6,127) (Measurement Date June 30, 2024)
Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2024 (in thousands):
1% Decrease (4.75%)
Current Discount
Rate (5.75%) 1% Increase (6.75%)
Net OPEB Liability $ (2,865) $ (6,127) $ (8,867)
Annual Comprehensive Financial Report 2025 City of Huntington Beach 77 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

8. Other Post Employment Benefits (Continued)
Sensitivity of the Net OPEB Liability/(Asset) to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2024 (in thousands):
1% Decrease Current Trend 1% Increase

7.50% Non-Medicare
/ 6.50% Medicare
(Non-Kaiser) / 5.25%
Medicare (Kaiser),
decreasing to 2.45%
Non-Medicare /

2.45% Medicare
(Non-Kaiser), 2.45%
Medicare (Kaiser)

8.50% Non-Medicare
/ 7.50% Medicare
(Non-Kaiser) / 6.25%
Medicare (Kaiser),
decreasing to 3.45%
Non-Medicare /

3.45% Medicare
(Non-Kaiser), 3.45%
Medicare (Kaiser)

9.50% Non-Medicare
/ 8.50% Medicare
(Non-Kaiser) / 7.25%
Medicare (Kaiser),
decreasing to 4.45%
Non-Medicare /

4.45% Medicare
(Non-Kaiser), 4.45%
Medicare (Kaiser)
Net OPEB Liability $ (9,177) $ (6,127) $ (2,306)
OPEB Plan Fiduciary Net Position
The CERBT issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained from the California Public Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94429-2703.

Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

Amounts are first recognized in OPEB expense for the year the gain or loss occurs.

The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.

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

Net difference between projected and actual earnings on OPEB plan investments 5 Years
City of Huntington Beach Annual Comprehensive Financial Report 2025 78Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

8. Other Post Employment Benefits (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB As of June 30, 2025, the City incurred OPEB income of $37,000. As of June 30, 2025, the City reported deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB Contributions subsequent to the measurement date $ 881 $ - Difference between expected and actual experience 253 5,608 Changes in Assumptions 1,158 1,253
Net difference between projected and actual earnings on OPEB Plan Investments 1,573 -
$ 3,865 $ 6,861
The $881,000 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the Fiscal Year ending June 30, 2026. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows (in thousands):

Measurement Periods
Ended June 30,
Deferred Outflows/
(Inflows) of Resources
2026 $ (907)
2027 106
2028 (1,116)
2029 (1,115)
2030 (454)
Thereafter (391)
$ (3,877)

9. Risk Management
The City is exposed to various risks of losses related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

The City records the liability claims as expenditures in the Self Insurance General Liability Internal Service Fund and the workers’ compensation claims in the Self Insurance Workers’ Compensation Internal Service Fund.

BICEP was created in 1988 by a joint powers agreement between the City of Huntington Beach and four other local entities including Oxnard, Ventura, Santa Ana, and West Covina, for the purpose of providing joint insurance coverage and related risk management services for member cities. BICEP allows member entities to finance a claims payment pool for certain liability claims in excess of $1,000,000 to a maximum coverage limit of $27,000,000 for claims incurred through June 30, 2015, and $24,000,000 thereafter.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 79 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

9. Risk Management (Continued)
Effective July 1, 2019, the member agencies of BICEP agreed to dissolve the Joint Powers Authority. BICEP continues to exist for the purpose of disposing of all claims, the distribution of assets, and any other functions necessary to conclude the affairs of BICEP as provided in the Bylaws of the Authority. Upon dissolution of BICEP, the City purchased liability insurance in the open marketplace, which provides insurance for claims costs exceeding the City’s self-insured retention of $1,000,000. The maximum coverage limit is $30,000,000, which is inclusive of the self-insured retention. Claims that exceed the maximum limit of liability are covered by the City’s Self-Insurance General Liability Internal Service Fund.

There were no liability claims in the past three years that exceeded the coverage limit.

Liability Claims
Claims up to $1,000,000 are paid from the City’s Self Insurance General Liability Internal Service Fund. Payments for claims from $1,000,000 to the maximum limit discussed above are covered by the excess liability coverage purchased by the City. Any claims exceeding the maximum limit are covered by the Self Insurance General Liability Internal Service Fund.

The liability for these claims is recorded as part of long-term obligations in the Self Insurance General Liability Fund and government-wide financial statements. Liabilities include amounts incurred, but not reported.

Workers’ Compensation Claims
Workers’ compensation claims of up to $1,000,000 per claim are paid from the Self Insured Workers’ Comp Internal Service Fund. Excess workers’ compensation coverage is purchased through the CSAC/Prism-Excess Insurance Authority. Payments for claims from $1,000,000 to statutory limits are covered by CSAC/Prism-Excess Insurance Authority.

The Self Insurance Workers’ Comp Internal Service Fund has negative $33,518,000 net position at year-end at the 55 percent confidence level. The City has established plans to help reduce the deficit in this fund. This will be accomplished by additional transfers from the General Fund, Proprietary funds, and other governmental funds in which employees are charged over the next nine years.

Claims activity and liabilities relating to the current and prior year are (in thousands):

Workers’
Compensation General Liability Total
Balance June 30, 2023 $ 44,087 $ 22,534 $ 66,621
Additions 14,488 7,085 21,573
Reductions (7,24 4) (19,855) (27,099)
Net Increase (Decrease) 7,24 4 (12,770) (5,526)
Balance June 30, 2024 $ 51,331 $ 9,764 $ 61,095
Additions 30,802 10,982 41,784
Reductions (15,401) (7,74 8) (23,149)
Net Increase (Decrease) 15,401 3,234 18,635
Balance June 30, 2025 $ 66,732 $ 12,998 $ 79,730
City of Huntington Beach Annual Comprehensive Financial Report 2025 80Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

10. Interfund Transactions
a. Advances to/from Other Funds
The amounts at year-end were (in thousands):

Advances to (Payable):

Redevelopment Agency
Private Purpose Trust
Advances from (Receivable):

General Fund $ 18,032
Major Governmental Funds LMIHAF Capital Projects 5,871 $ 23,903
There is a total $5,871,000 advance from the General Fund and LMIHAF Capital Projects Fund to the Redevelopment Agency Private Purpose Trust Fund as of June 30, 2025. $1,363,000 is for Main Pier property acquisitions, and $22,540,000 is for Waterfront property acquisition prior to the dissolution of the Redevelopment Agency on February 1, 2012. No set interest rates or fixed repayment terms have been established. b. Transfers In/Out
The amounts at year-end were (in thousands):

Transfers Out
Transfers In General Fund
Other
Governmental
Funds
Total
Governmental
Funds
Hazmat
Service Fund
Total
Transfers In
General Fund $ - $ 530 $ 530 $ 13 $ 543
Pension Liability 1,500 - 1,500 - 1,500
Infrastructure 17,539 - 17,539 - 17,539
Other Governmental Funds 2,968 - 2,968 - 2,968 Total Governmental Funds 22,007 530 22,537 13 22,550 Refuse Fund 70 - 70 - 70
Total Enterprise Funds 70 - 70 - 70
Total Transfers Out $ 22,077 $ 530 $ 22,607 $ 13 $ 22,620 The following is a summary of the significant transfers:
● $2,968,000 was transferred for Lease Revenue Bonds debt service payments. ● $70,000 was transferred from General Fund to Refuse Enterprise Fund to fund senior citizen rate reduction on refuse charges.
● $1,500,000 was transferred from General Fund to Pension Liability Fund to cover debt service payments related to Pension Obligation Bond. ● $13,000 was transferred from Hazmat Service Enterprise Fund to General Fund to cover administrative and overhead expenditures.
● $17,539,000 was transferred from General Fund to Infrastructure Fund for infrastructure-related projects such as road repairs and enhancement and other capital improvement projects.
● $530,000 was transferred from Other Government Funds to General Fund to cover administrative cost related to 5th and PCH parking structure.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 81 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
Below is a schedule of changes in long-term governmental obligations for the year (in thousands):

Governmental Activities:

June 30,
2024
Restated Additions Retirements
June 30,
2025
Accrued
Interest
Due Within
One Year
Public Financing Authority:
2014(a) Lease Revenue Bonds $ 9,810 $ - $ (750) $ 9,060 $ 99 $ 785 2020(a) Lease Revenue Bonds 4,835 - - 4,835 36 - 2020(b) Lease Revenue Bonds 8,265 - (1,545) 6,720 17 1,560 Total Public Financing Authority 22,910 - (2,295) 20,615 152 2,345 Other Long-Term Obligations:

Compensated Absences
(Restated) 16,534 5,656 (5,061) 17,129 - 2,045 Claims Payable 61,095 41,784 (23,149) 79,730 - 15,471 Pollution Remediation 2,000 - - 2,000 - -
LED Lighting Phase I 65 - (65) - - -
I-Bank CLEEN Loan 973 - (317) 656 6 324
CEC Loan 1,528 - (272) 1,256 - 274
Pension Obligation Bonds 305,322 - (12,767) 292,555 339 12,899 Finance Purchase Agreement 14,290 - (2,473) 11,817 39 2,266 Leases Payable 240 - (155) 85 - 85
Subscriptions Payable 3,800 - (1,480) 2,320 48 981 Total Other Long-Term
Obligations 405,847 47,440 (45,739) 407,548 432 34,345 Total Long-Term Obligations -
Governmental Activities $ 428,757 $ 47,440 $ (48,034) $ 428,163 $ 584 $ 36,690 a. Public Financing Authority
(1) 2014(a) Public Financing Authority Lease Revenue Bonds Year of Issuance 2014
Type of Debt Lease Revenue Bonds
Original Principal Amount $15,295,000
Security Lease with City
Interest Rates 3.0% to 5.0%
Interest Payment Dates March 1st, September 1st
Principal Payment Dates September 1st
Purpose of Debt Finance the construction of a new Senior Center Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 785 $ 289 $ 1,074
2027 810 265 1,075
2028 835 240 1,075
2029 860 215 1,075
2030 885 188 1,073
2031-2035 4,885 469 5,354
Total $ 9,060 $ 1,666 $ 10,726
City of Huntington Beach Annual Comprehensive Financial Report 2025 82Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
(2) 2020(a) Public Financing Authority Lease Revenue Bonds Year of Issuance 2020
Type of Debt Lease Revenue Bonds
Original Principal Amount $4,835,000
Security Lease with City
Interest Rates 4.0% to 5.0%
Interest Payment Dates May 1st, November 1st
Principal Payment Dates May 1st
Purpose of Debt Defease 2010(a) Lease revenue Bonds which Defeased 1997 Leasehold Revenue Bonds (Construct Pier Plaza and Purchase 800 MHZ system), 2000 Lease Revenue Bonds (Capital
Improvements and defeasance of Emerald Cove Certificate of Participation)
Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ - $ 224 $ 224
2027 - 224 224
2028 - 224 224
2029 - 224 224
2030 1,295 224 1,519
2031-2032 3,540 231 3,771
Total $ 4,835 $ 1,351 $ 6,186
(3) 2020(b) Public Financing Authority Lease Revenue Bonds Year of Issuance 2020
Type of Debt Lease Revenue Bonds
Original Principal Amount $14,440,000
Security Lease with City
Interest Rates 0.329% to 1.831%
Interest Payment Dates May 1st, November 1st
Principal Payment Dates May 1st
Purpose of Debt Defease 2011(a) Lease revenue Bonds which Defeased 2001(a) Leasehold Revenue Bonds (Construct Sports Complex and
South Beach Phase II Improvements) and 2001(b) Lease
Revenue Bonds (Defeased Civic Improvement Corporation
Certificates)
Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 1,560 $ 103 $ 1,663
2027 1,575 83 1,658
2028 1,600 61 1,661
2029 1,625 35 1,660
2030 360 7 367
Total $ 6,720 $ 289 $ 7,009
Annual Comprehensive Financial Report 2025 City of Huntington Beach 83 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
b. Other Long-Term Obligations
(1) Compensated Absences
There is no repayment schedule to pay the compensated absences amount of $17,129,000 relating to governmental operations. The General Fund typically liquidates the vacation and sick leave liability.
(2) Claims Payable
There is no repayment schedule for the claims payable for governmental activities of $79,730,000 described in Note 9. The City pays the claims upon final settlement.

The General Fund typically liquidates the claims payable liability. (3) Pollution Remediation
The City plans to remediate hazardous materials contamination of land located within Huntington Central Park used as a gun range facility prior to its close in 1997. The City is voluntarily planning to remediate the site in order to use the area for park purposes. The cost of the gun range remediation is estimated to be $2,000,000 and is reported as a long-term liability in the government-wide financial statements. The liability was measured by estimating a reasonable range of potential outlays and multiplying those outlays by their probability of occurring. (4) LED Lighting Phase I
Year of Issuance 2014
Type of Debt Leaseback from Capital One Public Funding, LLC Principal Amount Original $1,062,924
Security Loan Agreement with Capital One Public Funding, LLC Interest Rate 2.32%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt To purchase and upgrade street, area and pole lighting to energy efficient lEd light sources
The LED Light Phase I Loan had an outstanding balance of $65,000 as of June 30, 2024. This balance was fully retired during Fiscal Year 2024/25.

City of Huntington Beach Annual Comprehensive Financial Report 2025 84Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
(5) I-Bank CLEEN Loan
Year of Issuance 2016
Type of Debt CLEEN Loan from the California Infrastructure and Economic Development Bank (I-Bank)
Principal Amount Original $3,000,000
Security Edwards Fire Station
Interest Rate 2.32%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt To purchase and upgrade street pole lighting to energy efficient LED light sources
Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 324 $ 11 $ 335
2027 332 4 336
Total $ 656 $ 15 $ 671
(6) California Energy Commission (CEC) Loan
Year of Issuance 2016
Type of Debt Loan from the California Energy Commission (CEC) Principal Amount Original $3,000,000
Security Loan Agreement with CEC
Interest Rate 1.00%
Interest Payment Dates June 22nd and December 22nd
Principal Payment Dates June 22nd and December 22nd
Purpose of Debt To upgrade street pole lighting to energy efficient LED light sources
Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 274 $ 12 $ 286
2027 277 9 286
2028 280 6 286
2029 283 4 287
2030 142 1 143
Total $ 1,256 $ 32 $ 1,288
Annual Comprehensive Financial Report 2025 City of Huntington Beach 85 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
(7) Pension Obligation Bonds
Year of Issuance 2021
Type of Debt Pension Obligation Bonds
Principal Amount Original $341,501,000
Interest Rates 0.221% to 3.376%
Interest Payment Dates June 15th and December 15th
Principal Payment Dates June 15th
Purpose of Debt Pay 85% of CalPERS UAL as of the June 30, 2019 valuation report.

Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 12,899 $ 8,248 $ 21,147
2027 13,075 8,074 21,149
2028 13,291 7, 855 21,146
2029 13,548 7,601 21,149
2030 13,842 7, 305 21,147
2031-2035 74,565 31,173 105,738
2036-2040 86,139 19,599 105,738
2041-2044 65,196 5,119 70,315
Total $ 292,555 $ 94,974 $ 387,529
(8) Finance Purchase Agreement
Year of Issuance 2021
Type of Debt Capital Purchase Agreement
Principal Amount Various
Security Master Lease Agreement
Interest Rates 1.249% and 1.775%
Interest Payment Dates Semi-Annually
Principal Payment Dates Semi-Annually
Purpose of Debt Public Safety Equipment Financing
Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 2,266 $ 302 $ 2,568
2027 2,324 245 2,569
2028 2,038 186 2,224
2029 2,093 131 2,224
2030 2,150 75 2,225
2031 946 17 963
Total $ 11,817 $ 956 $ 12,773
City of Huntington Beach Annual Comprehensive Financial Report 2025 86Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
(9) Lease Payable
The City of Huntington Beach has entered into three leases as a lessee for the use of land and equipment and is required to make monthly fixed payments ranging from $5,000 to $7,000 over the lease terms. As of June 30, 2025, the value of the lease liability was $85,000. The future principal and interest lease payments as of June 30, 2025, were as follows:

Year Ending
June 30 Principal Interest Total
2026 $ 85 $ 1 $ 86
Total $ 85 $ 1 $ 86
(10) Subscription Payable
For the year ended June 30, 2023, the financial statements include the adoption of GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The primary objective of this statement is to enhance the relevance and consistency of information about governments’ subscription activities. This statement establishes a single model for subscription accounting based on the principle that subscriptions are financings of the right to use an underlying asset.

Under this Statement, an organization is required to recognize a subscription liability and an intangible right-to-use subscription asset.

The City of Huntington Beach has entered into seven subscription agreements for the use of various IT software and is required to make annual fixed payments ranging from $16,000 to $545,000 over the subscription terms. As of June 30, 2025, the value of the subscription liability was $2,320,000. The future principal and interest subscription payment as of June 30, 2025, were as follows:

Year Ending
June 30 Principal Interest Total
2026 $ 981 $ 47 $ 1,028
2027 655 28 683
2028 684 14 698
Total $ 2,320 $ 89 $ 2,409
c. Long-Term Obligations – Business-Type Activities
Below is a schedule of the long-term obligations of business-type activities (in thousands):

Long-Term Obligations - Business-Type
Activities:

June 30,
2024
Restated Additions Retirements June 30, 2025
Accrued
Interest
Due Within
One Year
Compensated Absences (Restated) $ 1,806 $ 581 $ (547) $ 1,840 $ - $ 502 Pension Obligation Bonds 19,589 - (897) 18,692 21 907 Total Long-Term Obligations -
Business-Type Activities $ 21,395 $ 581 $ (1,444) $ 20,532 $ 21 $ 1,409 Annual Comprehensive Financial Report 2025 City of Huntington Beach 87 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

11. Long-Term Obligations (Continued)
(1) Compensated Absences
There is no repayment schedule for the compensated absences amount of $1,840,000 relating to business-type activities. The balance for the outstanding business-type compensated absences is predominately related to the Water and Sewer funds.
(2) Pension Obligation Bond
Year of Issuance 2021
Type of Debt Pension Obligation Bonds
Principal Amount Original $22,144,000
Interest Rates 0.221% to 3.376%
Interest Payment Dates June 15th and December 15th
Principal Payment Dates June 15th
Purpose of Debt
Pay 85% of CalPERS UAL as of the June 30, 2019 valuation report.

Debt service requirements to maturity are (in thousands):

Year Ending
June 30 Principal Interest Total
2026 $ 907 $ 517 $ 1,424
2027 919 504 1,423
2028 934 489 1,423
2029 952 471 1,423
2030 973 450 1,423
2031-2035 5,241 1,875 7,116
2036-2040 6,055 1,061 7,116
2041-2042 2,711 138 2,849
Total $ 18,692 $ 5,505 $ 24,197
d. Long-Term Conduit Debt Obligations
Below is a schedule of the conduit debt obligations for which the City is not liable in any manner (in thousands):

Community Facilities Districts: June 30, 2024 Additions Retirements June 30, 2025 Community Facilities District No. 2000-1
2013 Special Tax Refunding Bonds $ 7,025 $ - $ (740) $ 6,285 Community Facilities District No. 2002-1
Special Assessment Tax Bonds 3,185 - (240) 2,945 Community Facilities District No. 2003-1
2013 Special Tax Refunding Bonds 12,780 - (1,010) 11,770 Total Community Facilities Districts 22,990 - (1,990) 21,000 Total Obligations Not Recorded in Financial
Statements $ 22,990 $ - $ (1,990) $ 21,000
City of Huntington Beach Annual Comprehensive Financial Report 2025 88Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

12. Capital Assets
a. Changes in Capital Assets
Capital asset activity for the year was (in thousands):

June 30,
2024 Additions Dispositions
June 30,
2025
Governmental Activities Capital Assets, Not
Depreciated:

Land $ 369,538 $ 105 $ - $ 369,643
Construction in Progress 15,141 4,602 (7,243) 12,500 Total Capital Assets - Not Depreciated 384,679 4,707 (7,243) 382,143 Capital Assets Being Depreciated
Buildings 230,490 4,330 - 234,820
Machinery and Equipment 101,765 7, 390 (1,051) 108,104 Infrastructure 496,978 26,530 (1,315) 522,193
Right to Use Leased Land 274 - (274) -
Right to Use Leased Machinery and Equipment 398 - - 398 Right to Use SBITA 6,317 - (139) 6,178
Total Capital Assets Being Depreciated 836,222 38,250 (2,779) 871,693 Less Accumulated Depreciation:

Buildings (104,612) (5,358) - (109,970)
Machinery and Equipment (63,222) (6,669) 1,051 (68,840) Infrastructure (259,010) (8,743) 1,315 (266,438) Right to Use Leased Land (252) - 252 -
Right to Use Leased Machinery and Equipment (177) (135) - (312) Right to Use SBITA (2,117) (1,460) 125 (3,452)
Total Accumulated Depreciation (429,390) (22,365) 2,743 (449,012) Total Depreciated - Net 406,832 15,885 (36) 422,681 Total Capital Assets 1,220,901 42,957 (10,022) 1,253,836 Total Accumulated Depreciation (429,390) (22,365) 2,743 (449,012) Capital Assets of Governmental Activities - Net $ 791,511 $ 20,592 $ (7,279) $ 804,824

Business-Type Activities:

June 30,
2024 Additions Dispositions
June 30,
2025
Capital Assets, Not Depreciated:

Land $ 3,907 $ - $ - $ 3,907
Construction in Progress 3,383 4,442 (1,532) 6,293 Total Capital Assets - Not Depreciated 7,290 4,442 (1,532) 10,200 Capital Assets Being Depreciated
Buildings 105,623 4,288 - 109,911
Machinery and Equipment 20,931 235 (83) 21,083
Infrastructure 155,956 2,387 (244) 158,099
Total Capital Assets Being Depreciated 282,510 6,910 (327) 289,093 Less Accumulated Depreciation:

Buildings (42,108) (2,575) - (44,683)
Machinery and Equipment (14,789) (1,273) 83 (15,979) Infrastructure (91,669) (2,453) 244 (93,878)
Total Accumulated Depreciation (148,566) (6,301) 327 (154,540) Total Depreciated - Net 133,944 609 - 134,553
Total Capital Assets 289,800 11,352 (1,859) 299,293 Total Accumulated Depreciation (148,566) (6,301) 327 (154,540) Capital Assets of Business Activities - Net $ 141,234 $ 5,051 $ (1,532) $ 144,753 Annual Comprehensive Financial Report 2025 City of Huntington Beach 89 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

12. Capital Assets (Continued)
b. Depreciation Expense
Depreciation in governmental activities was charged to the following functions/programs in the Statement of Activities (in thousands):

Department:

City Council $ 5
City Manager 92
City Treasurer 27
City Attorney 46
City Clerk 20
Finance 405
Human Resources 29
Community Development 352
Fire 1,060
Information Services 828
Police 2,056
Community Services 2,757
Library Services 368
Public Works 11,783
Internal Service Fund depreciation charged to functions 2,537 Total $ 22,365
Depreciation in business-type activities was charged to the following functions/programs in the Statement of Activities (in thousands):

Fund:

Water $ 3,924
Sewer Service 2,356
Refuse 21
Total $ 6,301
City of Huntington Beach Annual Comprehensive Financial Report 2025 90Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

13. Investment in Joint Ventures

The City participates in a firefighter training center called Central Net Operations Authority (CNOA) through a joint powers agreement with the City of Fountain Valley. The City of Huntington Beach records 76 percent of CNOA net assets as Joint Venture Investments.

There is no separate Component Unit Financial Report (CUFR) prepared for the CNOA.

14. Leases
The City of Huntington Beach has entered into 27 leases as a lessor for the use of City land and infrastructures. The lessees are required to make fixed monthly payments ranging from $322 to $44,000 over the lease terms. The City recognized $1,629,000 in lease revenue and $96,000 in interest revenue during the current fiscal year related to these agreements.

As of June 30, 2025, the lease receivable is $7,776,000 and deferred inflow of resources is $7,562,000. The future principal and interest payments as of June 30, 2025, were as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 1,501 $ 87 $ 1,588
2027 1,423 78 1,501
2028 833 70 903
2029 470 65 535
2030 327 60 387
2031-2035 1,102 242 1,344
2036-2040 807 175 982
2041-2045 814 114 928
2046-2050 499 56 555
Total $ 7,776 $ 947 $ 8,723

15. Successor Agency Trust for Assets of the Former Redevelopment Agency of the City of Huntington Beach
a. General Discussion
On December 29, 2011, the California Supreme Court upheld ABX1 26 that provided for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Huntington Beach that was previously reported as a Redevelopment Agency within the City as a blended component unit.

ABX1 26 provides that upon dissolution of a Redevelopment Agency, either the City or another unit of local government will agree to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local government.

On January 9, 2012, the City Council elected to become the Successor Agency for the former Redevelopment Agency in accordance with ABX1 26 as part of City resolution number 2012-01.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 91 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

15. Successor Agency Trust for Assets of the Former Redevelopment Agency of the City of Huntington Beach (Continued)
After enactment of the law, effective June 28, 2011, Redevelopment Agencies in the State of California generally cannot enter into new projects, obligations or commitments.

Subject to the control of a newly established Oversight Board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

In future fiscal years, Successor Agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior Redevelopment Agency have been paid in full and all assets have been liquidated.

ABX1 26 directs the State Controller of the State of California to review the propriety of any transfers of assets between Redevelopment Agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as of successor agency by ABX1 26. b. Long-Term Debt
Below is a schedule of changes in long-term obligations of the Successor Agency for the year (in thousands):

Successor Agency:

June 30,
2024 Additions Retirements
June 30,
2025
Accrued
Interest
Due Within
One Year
Bonds Payable
1999 Tax Allocation
Refunding Bonds $ 360 $ - $ (360) $ - $ - $ - 2002 Tax Allocation Bonds 780 - (780) - - - Total Bonds Payable 1,140 - (1,140) - - - Other Long-Term
Obligations
Bella Terra AHA (Phase II) 10,494 - (903) 9,591 - 903 CIM DDA (Parking &
Infrastructure) 4,288 - (378) 3,910 205 404
CIM DDA (Additional
Parking) 304 - (19) 285 21 21
Total Other Long-Term
Obligations 15,086 - (1,300) 13,786 226 1,328 Total Long-Term
Obligations $ 16,226 $ - $ (2,440) $ 13,786 $ 226 $ 1,328 City of Huntington Beach Annual Comprehensive Financial Report 2025 92Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

15. Successor Agency Trust for Assets of the Former Redevelopment Agency of the City of Huntington Beach (Continued)
(1) 1999 Tax Allocation Refunding Bonds
Year of Issuance 1999
Type of Debt Tax Allocation Refunding Bonds
Original Principal Amount $10,835,000
Security Tax Increment
Interest Rates 3.00% to 5.05%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt Prepay Agency’s 1992 Loans to Public Financing Authority The 1999 Tax allocation refunding bonds had an outstanding balance of $360,000 as of June 30, 2024. This balance was fully retired during Fiscal Year 2024/25.
(2) 2002 Tax Allocation Refunding Bonds
Year of Issuance 2002
Type of Debt Tax Allocation Refunding Bonds
Original Principal Amount $20,900,000
Security Tax Increment
Interest Rates 2.00% to 5.00%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt Prepay Agency’s 1992 Loans to Public Financing Authority and fully defease 1992 Public Financing Authority bonds
The 2002 Tax allocation refunding bonds had an outstanding balance of $780,000 as of June 30, 2024. This balance was fully retired during Fiscal Year 2024/25 .

Pledged Revenues
The Successor Agency will repay a total of $1,169,000, principal and interest, for the outstanding 1999 and 2002 Tax Allocation Refunding Bonds as of June 30, 2025 from semi-annual Redevelopment Property Tax Trust Fund (RPTTF) revenue allocations.

The 1999 and 2002 Tax Allocation Refunding Bonds are not a debt of the City of Huntington Beach, the State of California, nor any of its political subdivisions, and neither the City, the State nor any of its political subdivision is liable therefore, not in any event shall the bonds be payable out of funds or properties other than those of the Redevelopment Agency as set forth in the bond indenture.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 93 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

15. Successor Agency Trust for Assets of the Former Redevelopment Agency of the City of Huntington Beach (Continued)
(3) Bella Terra Phase II
In Fiscal Year 2010/11, the Agency entered into an affordable housing agreement with BTDJM Phase II Associates (DJM). The agreement would facilitate the construction of a 467 unit mixed use project, including 43 moderate units and 28 very low units. Under the terms of the agreement, the Agency would reimburse DJM for the construction of the affordable units up to $17,000,000.

DJM has transferred the site to UDR, and as of year-end, the Successor Agency obligation under the agreement amounted to $9,591,000. Reimbursement of the affordable units will be based upon the site-generated tax increment for the mixed use project as well as the 20% housing fund from the site-generated Bella Terra I. The interest rate of this obligation is 4.00%. The agreement has been approved as an enforceable obligation by the DOF.

(4) CIM/Huntington Disposition and Development Agreement - Strand Parking Structure and Infrastructure
Year of Issuance 2009
Type of Debt Loan from CIM Group, LLC
Original Principal Amount $7,900,000
Security Tax Increment
Interest Rates 7.00%
Interest Payment Dates September 30th
Principal Payment Dates September 30th
Purpose of Debt Strand Parking Structure and Infrastructure As of year-end, the Successor Agency obligation under the agreement amounted to $3,910,000. Repayment shall be made solely from RPTTF revenues received by the Huntington Beach Redevelopment Successor Agency Private Purpose Trust Fund in the amounts included in the Oversight Board approved Recognized Obligation Payment Schedule (ROPS) to the County Auditor Controller (CAC) and the DOF. The Disposition and Development Agreement (DDA) has been approved as an enforceable obligation by the DOF.
(5) CIM/Huntington Disposition and Development Agreement – Additional Strand Parking
Year of Issuance 2009
Type of Debt Loan from CIM Group, LLC
Original Principal Amount $950,000
Security Tax Increment
Interest Rates 10.00%
Interest Payment Dates September 30th
Principal Payment Dates September 30th
Purpose of Debt Additional Strand Parking Structure and Infrastructure City of Huntington Beach Annual Comprehensive Financial Report 2025 94Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

15. Successor Agency Trust for Assets of the Former Redevelopment Agency of the City of Huntington Beach (Continued)
As of year-end, the Successor Agency obligation under the agreement amounted to $285,000. Repayment shall be made solely from RPTTF revenues received by the Huntington Beach Redevelopment Successor Agency Private Purpose Trust Fund in the amounts included in the Oversight Board approved ROPS to the CAC and the DOF. The DDA has been approved as an enforceable obligation by the DOF.
c. Advances from the City Housing Fund
The Successor Agency has recorded advances from the City totaling $23,903,000 from the Low-Income Housing Fund and General Fund to the Redevelopment Agency Capital Projects Fund for Main Pier property acquisitions and Waterfront property acquisitions.

16. Commitments and Contingencies
a. Legal Actions
There are legal actions pending against the City resulting from normal operations. In the opinion of management and the City Attorney, the financial resolution of these actions should not have a significant impact on these financial statements. b. Sales Tax Sharing Agreements
City Council has agreed to provide sales tax rebates to various companies, based upon various factors such as increased job-base or new sales tax to the City. The sales tax rebates serve to attract and retain various companies in the City of Huntington Beach.

The City of Huntington Beach has three sales tax sharing agreements with Pinnacle Petroleum (2029), (McKenna Subaru HB) 2033, and Surf City Auto Group II, Inc. (2038).

Pinnacle Petroleum receives a 65% rebate after base sales exceed $25,000, McKenna Subaru HB receives a 45% rebate after base sales exceed $150,800, and Surf City Auto Group II, Inc. receives a 50% rebate after base sales exceed $1,785,261 (which increases by 1% annually). Sales tax rebates totaled $706,806 for the year ending June 30, 2025.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 95 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

16. Commitments and Contingencies (Continued)
c. Cooperation and Owner Participation Agreements
On September 2, 2003, the Redevelopment Agency Approved a Cooperation Agreement Regarding Capital Improvements in the Southeast Coastal Redevelopment Project with the City. This agreement commits the Redevelopment Agency to reimburse the City for a number of capital improvement projects to be undertaken as part of the Five Year Capital Improvement Program in the Southeast Redevelopment project area starting in FY 2003/04 as they are undertaken. The Successor Agency received its Finding of Completion notice from the Department of Finance on May 13, 2014. The Oversight Board (to the Successor Agency) have approved and reauthorization of the loans between the City and former Redevelopment Agency in FY 2016/17. The DOF has denied the validity of the loans and the City has filed suit against the State. On April 22, 2022, the Superior Court of California issued a Proposed Judgment stating that the agreement did not constitute an enforceable obligation and that repayment was not required. The City requested a hearing with the Court to appeal this determination. On February 17, 2023, the Superior Court of California issued a final ruling stating that the agreement did not constitute an enforceable obligation; thus, repayment was not required. d. Redevelopment Successor Agency Debt to City
The City has advanced money to the Redevelopment Agency for major capital improvements, economic development projects, and operations. In January 2011, the City Council and Redevelopment Agency Board approved a revised Cooperation Agreement, which included a Promissory Note that memorialized indebtedness previously incurred by the Agency and owed to the City from a series of loans made from the City to the Agency from 1982 to present.

The City and Successor Agency have not recorded the advances in the accompanying financial statements due to uncertainties related to Health and Safety Code Section 34191.4, which establishes certain restrictions and limitations on the repayment of city-agency loans. In accordance with Health and Safety Code Section 34191.4(b)(3), all other loans between the city and former Redevelopment Agency will begin to be repaid, at a 3% interest rate, as determined by SB 107 upon approval of the Oversight Board and the DOF. The Oversight Board (to the Successor Agency) have approved and reauthorized the loans between the City and former Redevelopment Agency in FY 2016/17. The DOF has denied the validity of the loans and the City has filed suit against the State. On April 22, 2022, the Superior Court of California issued a Proposed Judgment stating that the majority of the agreements between the City and the former Redevelopment Agency were not considered enforceable obligations and that repayment was not required, with the exception of the $22,400,000 loan for the purchase of the Waterfront property.

The DOF denied this obligation in a follow up letter to the City dated August 24, 2022.

The City has requested a hearing with the Court to appeal this determination. On February 17, 2023, the Superior Court of California issued a final ruling confirming the April 22, 2022 determination. As of June 30, 2025, the City recognizes $22,540,000 of receivables relating to the Waterfront property purchase to be paid in future ROPS.

City of Huntington Beach Annual Comprehensive Financial Report 2025 96Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

16. Commitments and Contingencies (Continued)
Below is a schedule of the activity for the year (in thousands):

June 30,
2024 Additions Reductions
June 30,
2025
General Fund
Direct Advances $ 2,312 $ - $ - $ 2,312
Indirect Advances 6,567 - - 6,567
Land Sales 10,433 - - 10,433
Interest 32,206 2,345 - 34,551
Total General Fund 51,518 2,345 - 53,863
Sewer Fund
Direct Advances 321 15 - 336
Deferred Development Fees 200 9 - 209
Total Sewer Fund 521 24 - 545
Drainage Fund
Direct Advances 774 35 - 809
Deferred Development Fees 213 10 - 223
Total Drainage Fund 987 45 - 1,032
Park Acquisition and Development
Fund
Direct Advances 6, 374 290 - 6,664
Deferred Development Fees 473 22 - 495
Total Park Acquisition and Development
Fund 6,847 312 - 7,159
Water Fund
Direct Advances 4,796 219 - 5,015
Total Water Fund 4,796 219 - 5,015
Total All Funds $ 64,669 $ 2,945 $ - $ 67,614
e. Successor Agency Litigation
Until 2012, the Huntington Beach Redevelopment Agency existed and received property tax increment from property within the “City Redevelopment Project Area.” In 2012, the State Legislature dissolved all redevelopment agencies, and all tax increment was returned to the County for payment to other taxing entities. The only exception was that tax increment would continue to be paid to the Successor Agency to the City Redevelopment Agency to pay any pre-dissolution, legally binding obligations established prior to the dissolution of the agencies. Further, the City transferred the former Redevelopment Agency’s housing obligations to the Huntington Beach Housing Authority pursuant to Health and Safety Code section 34176.

The Successor Agency contended that the 2012 Pacific City Development Agreement was a pre-dissolution, legally binding obligation. Pacific City is a development project that was conditioned on providing 77 affordable housing units, of which the Successor Agency now was obliged to construct 26 units off-site, at a cost of $6,500,000. This would not be a City General Fund obligation.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 97 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

16. Commitments and Contingencies (Continued)
On April 22, 2022, the Superior Court of California issued a Proposed Judgment stating that the majority of the agreements between the City and the former Redevelopment Agency were not considered enforceable obligations and that repayment was not required, with the exception of the $22,400,000 loan for the purchase of the Waterfront property and the Promissory Note related to the Emerald Cove Housing Project. The City has requested a hearing with the Court to appeal this determination. On February 17, 2023, the Superior Court of California issued a final ruling confirming the April 22, 2022 determination. On May 19, 2023, the DOF issued a letter confirming the Court ruling. In Fiscal year 2024/25, the City recognizes $22,540,000 of receivables relating to the Waterfront property purchase to be paid in future ROPS.

The Housing Authority is reviewing options on meeting the affordable housing requirements for Pacific City with other projects. The City itself does not require a reserve for either case.

City of Huntington Beach Annual Comprehensive Financial Report 2025 98Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

17. Other Information
Fund and Accumulated Deficits
The following fund has a total fund deficits at year-end (in thousands):

Internal Service Fund:

Self Insurance Workers’ Comp $ (33,518)
The Self Insurance Workers’ Compensation fund has a deficit due to increases in statutory benefits related to workers’ compensation claims and rising healthcare costs.

The City has established plans to reduce and eliminate the deficits in these funds. Additional transfers will be made over the next ten to twenty years from the General Fund, Proprietary funds, and other governmental funds to address the deficits in the Self Insurance Workers’ Compensation and General Liability Internal Service Funds.

18. Restatements of Net Position
For the fiscal year ending June 30, 2025, the City implemented GASB Statement No. 101, Compensated Absences. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled.

This GASB resulted in the restatement of beginning net position of governmental and business-type activities as follows:

Government-Wide

Governmental
Activities
Business-Type
Activities Total
Net position of fund balances, Beginning of Year, As
previously Reported $ 699,968 $ 196,816 $ 896,784
Adoption of GASB 101 (1,001) (48) (1,049)
Total adjustments (1,001) (48) (1,049)
Net position of fund balances, Beginning of Year,
As restated $ 698,967 $ 196,768 $ 895,735
Annual Comprehensive Financial Report 2025 City of Huntington Beach 99 Notes to Financial Statements
For Fiscal Year Ended June 30, 2025

18. Restatements of Net Position (Continued)

Reporting Units Affected by Adjustments to and Restatements of Beginning Balances
Water Fund
Sewer Service
Fund Refuse Fund
Self Insurance
Worker’s
Comp
Net position of fund balances, Beginning
of Year, As previously Reported $ 116,368 $ 79,813 $ 216 $ (26,415) Adoption of GASB 101 (33) (12) (3) (4)
Total adjustments (33) (12) (3) (4)
Net position of fund balances,
Beginning of Year, As restated $ 116,335 $ 79,801 $ 213 $ (26,419) City of Huntington Beach Annual Comprehensive Financial Report 2025 100Notes to Financial Statements
For Fiscal Year Ended June 30, 2025
Required
Supplemental
Information
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
Budgetary Information
The City Council must annually adopt a budget by June 30 of the prior fiscal year. The budgeted expenditures become the appropriations to the various departments. The budget includes estimates for revenue that, along with the appropriations, compute the budgetary fund balance.

The appropriated budget covers substantially all governmental fund expenditures with the exception of capital improvement projects (capital projects funds) carried forward from prior years, which constitute a legally authorized non-appropriated budget. The City Council may amend the budget at any time. The City Manager may transfer funds from between object purposes (personal services, operating expenditures, or capital outlay expenditures) within the same department without changing the total departmental budget. Department heads, with the Chief Financial Officer’s approval, may transfer funds from like object categories of the same department. The City Council must approve any changes to departmental budgets. Expenditures may not exceed appropriations at the departmental level. All unused appropriations lapse at year-end. During the year, the City Council made several supplemental appropriations which included carryovers of prior year encumbrances, all of which were within available fund balance and estimated revenue amounts.

The City Council adopts governmental fund budgets consistent with generally accepted principles as legally required. There are no significant non-budgeted financial activities. Revenues for special revenue funds are budgeted by entitlements, grants and estimates of future development and economic growth. Expenditures and transfers are budgeted based upon available financial resources.

On or before February 28th of each year, each department submits data to the City Manager for budget preparation. Staff prepares the budget by fund, function, and activity. The budget includes information on past years, current year estimates and requested appropriations for the next fiscal year. Before May 1st, the City Council receives the proposed budget. The City Council holds public hearings and may amend the budget by a majority vote. Changes to the budget must be within the available revenues and reserves.

These financial schedules show budgetary data for the General and Grants Special Revenue.

The original budget, revised budget, actual expenditures, and variance amounts are shown.

The City uses an encumbrance system as an aid in controlling expenditures. When the City issues a purchase order for goods or services, it records an encumbrance until the vendor delivers the goods or performs the service. At year-end, the City reports all outstanding encumbrances as committed or assigned fund balance in governmental fund types. The City reappropriates these encumbrances into the new fiscal year.

The following pages present schedules of budget to actual comparison of the General and Grants Special Revenue Fund’s Revenues, and Expenditures and Changes in Fund Balance (in thousands).

City of Huntington Beach Annual Comprehensive Financial Report 2025 102Required Supplemental Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)

General Fund
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Property Taxes $ 108,152 $ 109,378 $ 109,379 $ 1 Sales Taxes 53,488 49,310 49,310 -
Utility Taxes 23,000 23,000 22,706 (294)
Other Taxes 27,400 25,400 25,365 (35)
Licenses and Permits 8,837 8,965 10,355 1,390 Fines and Forfeitures 4,625 4,625 6,040 1,415 Use of Money and Property (Loss) 22,583 33,435 33,440 5 Intergovernmental 8,811 17, 399 18,586 1,187 Charges for Current Services 36,641 35,082 35,081 (1) Other 1,680 7,193 7,198 5
Total Revenues 295,217 313,787 317,460 3,673

EXPENDITURES
Current:

City Council 500 555 492 63
City Manager 3,504 4,335 3,810 525
City Treasurer 1,831 2,425 2,425 -
City Attorney 4,073 4,772 4,098 674
City Clerk 1,400 1,796 1,796 -
Finance 5,524 6,661 6,249 412
Human Resources 2,759 3,419 2,578 841
Community Development 14,205 20,710 15,830 4,880 Fire 61,659 77, 345 77, 345 -
Information Services 8,343 9,851 8,614 1,237 Police 89,612 104,277 104,277 -
Community Services 11,377 13,863 13,562 301 Library Services 5,658 7,116 6,949 167
Public Works 24,449 28,806 28,394 412
Debt Service:

Principal 3,352 4,763 4,761 2
Interest 396 480 480 -
Total Expenditures 238,642 291,174 281,660 9,514 Excess of Revenues Over Expenditures 56,575 22,613 35,800 13,187

OTHER FINANCING SOURCES (USES)
Transfers In 10,623 10,623 543 (10,080)
Transfers Out (62,473) (29,747) (22,077) 7,670 Total Other Financing Uses (51,850) (19,124) (21,534) (2,410) Net Change in Fund Balances 4,725 3,489 14,266 10,777 Fund Balances - Beginning of Year 132,319 132,319 132,319 - Fund Balances - End of Year $ 137,044 $ 135,808 $ 146,585 $ 10,777 Annual Comprehensive Financial Report 2025 City of Huntington Beach 103 Required Supplemental Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)

Grants Special Revenue
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ 3 $ 328 $ 325 Intergovernmental 3,674 9,133 18,927 9,794
Other 192 192 518 326
Total Revenues 3,866 9,328 19,773 10,445

EXPENDITURES
Current:

City Manager - 1,118 966 152
Community Development 2,277 5,949 3,471 2,478 Fire 893 1,398 359 1,039
Police 566 4,175 2,558 1,617
Community Services 324 443 331 112
Library Services 60 169 170 (1)
Public Works 1,034 22,702 8,580 14,122
Total Expenditures 5,154 35,954 16,435 19,519 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,288) (26,626) 3,338 29,964

OTHER FINANCING SOURCES (USES)
Transfers Out (65) - - -
Total Other Financing Uses (65) - - -
Net Change in Fund Balances (1,353) (26,626) 3,338 29,964 Fund Balances - Beginning of Year 2,712 2,712 2,712 - Fund Balances (Deficits) - End of Year $ 1,359 $ (23,914) $ 6,050 $ 29,964 City of Huntington Beach Annual Comprehensive Financial Report 2025 104Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS DURING

THE MEASUREMENT PERIOD
(IN THOUSANDS)
Last Ten Fiscal Years
CalPERS City Miscellaneous Plan - 99
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Total Pension Liability
Service cost $ 9,364 $ 9,167 $ 8,174 $ 8,005 $ 7,779 $ 8,327 $ 8,314 $ 8,084 $ 7,436 $ 7,102 Interest on total pension
liability 46,275 44,775 43,253 42,217 41,058 40,150 38,769 37,749 37,194 35,653 Differences between
expected and actual
experience 5,289 5,260 451 (891) (6,087) (183) (2,042) (9,148) 1,072 (2,900) Changes of Benefit Terms - 658 - - - - - - - - Changes in assumptions - - 19,824 - - - (3,634) 30,762 - (8,565) Benefit payments, including
refunds of employee
contributions (38,523) (36,633) (34,942) (33,392) (30,321) (28,508) (26,685) (25,312) (24,316) (23,377) Net change in total
pension liability 22,405 23,227 36,760 15,939 12,429 19,786 14,722 42,135 21,386 7, 913 Total pension liability -
beginning 679,953 656,726 619,966 604,027 591,598 571,812 557,090 514,955 493,569 485,656 Total pension liability -
ending (a) $ 702,358 $ 679,953 $ 656,726 $ 619,966 $ 604,027 $ 591,598 $ 571,812 $ 557,090 $ 514,955 $ 493,569 Plan Fiduciary Net
Position
Contributions - employer $ 5,808 $ 7,450 $ 6,951 $ 150,917 $ 16,879 $ 14,816 $ 13,495 $ 12,316 $ 10,982 $ 9,747 Contributions - employee 4,090 3,741 3,533 3,450 3,630 3,779 3,649 3,869 3,736 3,790 Investment income 56,643 36,077 (49,840) 107,447 21,485 27,288 32,963 40,328 1,856 8,230 Administrative Expense (494) (439) (419) (443) (609) (296) (614) (536) (226) (418) Benefit payments (38,523) (36,633) (34,942) (33,392) (30,321) (28,508) (26,685) (25,312) (24,316) (23,377) Plan to Plan Resource
Movement - 1 - - - (13) 1 - - - Other - - - - - 1 (1,166) - - 2 Net change in plan
fiduciary net position 27,524 10,197 (74,717) 227, 979 11,064 17,067 21,643 30,665 (7,968) (2,026) Plan fiduciary net position
- beginning 607,045 596,848 671,565 443,586 432,522 415,455 393,812 363,147 371,115 373,141 Plan fiduciary net position
- ending (b) $ 634,569 $ 607,045 $ 596,848 $ 671,565 $ 443,586 $ 432,522 $ 415,455 $ 393,812 $ 363,147 $ 371,115 Net pension liability -
beginning 72,908 59,878 (51,599) 160,441 159,076 156,357 163,278 151,808 122,454 112,515 Net pension liability
(asset) - ending (a)-(b) $ 67,789 $ 72,908 $ 59,878 $ (51,599) $ 160,441 $ 159,076 $ 156,357 $ 163,278 $ 151,808 $ 122,454 Plan fiduciary net position
as a percentage of the total
pension liability (asset) 90.35% 89.28% 90.88% 108.32% 73.44% 73.11% 72.66% 70.69% 70.52% 75.19% Covered payroll $ 52,161 $ 51,089 $ 46,824 $ 45,740 $ 45,952 $ 45,419 $ 45,431 $ 44,848 $ 44,365 $ 44,233 Net pension liability as a
percentage of covered
payroll 129.96% 142.71% 127. 88% N/A 349.15% 350.24% 344.16% 364.07% 342.18% 276.84% Notes to Schedule:

Benefit changes: the figures above include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes in assumptions: There were no assumption changes in 2024. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
* For covered payroll, the measurement period of July 1, 2023 to June 30, 2024 was used.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 105 Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS DURING

THE MEASUREMENT PERIOD
(IN THOUSANDS)
Last Ten Fiscal Years
CalPERS City Safety Plan - 100
Measurement Period 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Total Pension Liability
Service cost $ 15,083 $ 15,176 $ 14,683 $ 13,386 $ 13,226 $ 13,644 $ 13,509 $ 13,657 $ 12,159 $ 11,119 Interest on total pension
liability 63,005 60,569 57,872 56,114 54,597 53,048 51,223 49,350 48,390 46,160 Differences between
expected and actual
experience 10,024 13,601 102 (3,882) (4,721) (1,220) 2,584 (10,819) 2,678 (820) Changes of Benefit Terms - 374 - - - - - - - - Changes in assumptions - - 28,785 - - - (3,657) 40,352 - (11,054) Benefit payments, including
refunds of employee
contributions (51,355) (49,495) (45,876) (44,362) (41,247) (38,958) (37,128) (34,222) (32,116) (30,535) Net change in total
pension liability 36,757 40,225 55,566 21,256 21,855 26,514 26,531 58,318 31,111 14,870 Total pension liability -
beginning 921,228 881,003 825,437 804,181 782,326 755,812 729,281 670,963 639,852 624,982 Total pension liability -
ending (a) $ 957, 985 $ 921,228 $ 881,003 $ 825,437 $ 804,181 $ 782,326 $ 755,812 $ 729,281 $ 670,963 $ 639,852 Plan Fiduciary Net
Position
Contributions - employer $ 11,525 $ 13,219 $ 13,579 $ 257, 381 $ 25,848 $ 23,063 $ 21,058 $ 20,629 $ 18,703 $ 17,791 Contributions - employee 5,482 4,949 4,985 4,395 4,355 4,337 4,164 4,570 4,058 4,110 Investment income 75,169 47, 901 (65,933) 133,170 25,784 32,776 39,336 48,413 2,144 9,661 Administrative Expense (655) (580) (549) (532) (731) (355) (736) (640) (270) (497) Benefit payments (51,355) (49,495) (45,876) (44,362) (41,247) (38,958) (37,128) (34,222) (32,116) (30,535) Net Plan to Plan Resource
Movement - (1) - - - 13 (3) - (29) - Other - - - - - 1 (1,398) - - - Net change in plan
fiduciary net position 40,166 15,993 (93,794) 350,052 14,009 20,877 25,293 38,750 (7,510) 530 Plan fiduciary net position
- beginning 804,904 788,911 882,705 532,653 518,644 497,767 472,474 433,724 441,234 440,704 Plan fiduciary net position
- ending (b) $ 845,070 $ 804,904 $ 788,911 $ 882,705 $ 532,653 $ 518,644 $ 497,767 $ 472,474 $ 433,724 $ 441,234 Net pension liability -
beginning 116,324 92,092 (57,268) 271,528 263,682 258,045 256,807 237,239 198,618 184,278 Net pension liability
(asset) - ending (a)-(b) $ 112,915 $ 116,324 $ 92,092 $ (57,268) $ 271,528 $ 263,682 $ 258,045 $ 256,807 $ 237,239 $ 198,618 Plan fiduciary net position
as a percentage of the total
pension liability (asset) 88.21% 87. 37% 89.55% 106.94% 66.24% 66.30% 65.86% 64.79% 64.64% 68.96% Covered payroll $ 55,724 $ 48,194 $ 48,023 $ 45,665 $ 43,783 $ 43,684 $ 43,371 $ 43,283 $ 42,619 $ 42,252 Net pension liability as a
percentage of covered
payroll 202.63% 241.37% 191.77% N/A 620.17% 603.61% 594.97% 593.32% 556.65% 470.08% Notes to Schedule:

Benefit changes: the figures above include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.

Changes in assumptions: There were no assumption changes in 2024. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.
* For covered payroll, the measurement period of July 1, 2023 to June 30, 2024 was used.

City of Huntington Beach Annual Comprehensive Financial Report 2025 106Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS DURING

THE MEASUREMENT PERIOD
(IN THOUSANDS)
Last Ten Fiscal Years
Supplemental Retirement Plan
Measurement Period 2024-25 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18** 2016-17 2015-16 Total Pension Liability
Service cost $ 151 $ 203 $ 237 $ 299 $ 350 $ 338 $ 398 $ 344 $ 487 $ 552 Interest on total pension
liability 3,889 3,848 3,934 3,897 4,292 3,954 3,990 2,964 3,976 3,945 Differences between
expected and actual
experience - 781 - 492 - 4,594 - (794) - 982 Changes in assumptions - (1,375) - (1,638) 6,547 1,756 - 2,115 1,515 2,928 Benefit payments, including
refunds of employee
contributions (5,743) (5,711) (5,712) (5,668) (5,494) (5,012) (4,771) (3,388) (4,144) (3,773) Net change in total
pension liability (1,703) (2,254) (1,541) (2,618) 5,695 5,630 (383) 1,241 1,834 4,634 Total pension liability -
beginning 70,356 72,610 74,151 76,769 71,074 65,444 65,827 64,586 62,752 58,118 Total pension liability -
ending (a) $ 68,653 $ 70,356 $ 72,610 $ 74,151 $ 76,769 $ 71,074 $ 65,444 $ 65,827 $ 64,586 $ 62,752 Plan Fiduciary Net
Position
Contributions - employer $ 6,120 $ 1,422 $ 6,046 $ 6,006 $ 1,435 $ 3,506 $ 4,962 $ 3,507 $ 5,346 $ 7,277 Investment income 7,276 6,954 4,823 (11,362) 15,717 2,114 2,582 2,128 6,373 4,282 Administrative Expense (377) (350) (334) (338) (314) (444) (191) (145) (182) (189) Benefit payments (5,743) (5,711) (5,712) (5,668) (5,494) (5,012) (4,771) (3,388) (4,144) (3,773) Section 115 Trust
Segregation - - - - - - - (3,788) - - Net change in plan
fiduciary net position 7,276 2,315 4,823 (11,362) 11,344 164 2,582 (1,686) 7, 393 7,597 Plan fiduciary net position
- beginning 66,137 63,822 58,999 70,361 59,017 58,853 56,271 57,957 50,564 42,967 Plan fiduciary net position
- ending (b) $ 73,413 $ 66,137 $ 63,822 $ 58,999 $ 70,361 $ 59,017 $ 58,853 $ 56,271 $ 57,957 $ 50,564 Net pension liability -
beginning 4,219 8,788 15,152 6,408 12,057 6,591 9,556 6,629 12,188 15,151 Net pension liability -
ending (a)-(b) $ (4,760) $ 4,219 $ 8,788 $ 15,152 $ 6,408 $ 12,057 $ 6,591 $ 9,556 $ 6,629 $ 12,188 Plan fiduciary net position
as a percentage of the total
pension liability 106.93% 94.00% 87. 90% 79.57% 91.65% 83.04% 89.93% 85.48% 89.74% 80.58% Covered payroll $ 4,821 $ 5,590 $ 5,497 $ 6,670 $ 7,684 $ 8,469 $ 12,863 $ 10,890 $ 17,167 $ 19,517 Net pension liability as a
percentage of covered
payroll N/A 75.47% 159.87% 227.17% 83.39% 142.37% 51.24% 87.75% 38.61% 62.45% ** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30, 2018.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 107 Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS FOR THE MEASUREMENT PERIODS ENDED JUNE 30
(IN THOUSANDS)
Last Ten Fiscal Years*
Other Post Employment Benefits Plan
Measurement Period 2024 2023 2022 2021 2020 2019 2018 2017 Total OPEB Liability
Service cost $ 970 $ 968 $ 1,004 $ 1,120 $ 1,096 $ 1,241 $ 1,205 $ 877 Interest on the total OPEB liability 1,593 1,709 1,655 2,119 2,064 1,859 1,787 1,293 Actual and expected experience
difference - (3,372) - (6,296) - 1,411 - - Changes in assumptions - 503 (891) 1,603 (298) (3,358) - - Benefit payments (1,800) (1,870) (2,352) (2,129) (1,848) (1,742) (1,683) (1,036) Net change in total OPEB
liability 763 (2,062) (584) (3,583) 1,014 (589) 1,309 1,134 Total OPEB liability - beginning 27,630 29,692 30,276 33,859 32,845 33,434 32,125 30,991 Total OPEB liability - ending (a) $ 28,393 $ 27,630 $ 29,692 $ 30,276 $ 33,859 $ 32,845 $ 33,434 $ 32,125 Plan Fiduciary Net Position
Contribution - employer** $ 935 $ 1,997 $ 2,499 $ 1,882 $ 1,959 $ 2,270 $ 4,191 $ 1,036 Net investment income 2,693 1,130 (4,561) 6,025 1,580 1,901 1,126 471 Benefit payments (1,800) (1,870) (2,352) (2,129) (1,848) (1,742) (1,683) (1,036) Administrative expense (145) (136) (156) (111) (245) (61) (131) (9) Net change in plan fiduciary
net position 1,683 1,121 (4,570) 5,647 1,446 2,368 3,503 462 Plan fiduciary net position -
beginning 32,837 31,716 36,286 30,639 29,193 26,825 23,322 22,860 Plan fiduciary net position -
ending (b) $ 34,520 $ 32,837 $ 31,716 $ 36,286 $ 30,639 $ 29,193 $ 26,825 $ 23,322 Net OPEB liability (asset) -
ending (a)-(b) $ (6,127) $ (5,207) $ (2,024) $ (6,010) $ 3,220 $ 3,652 $ 6,609 $ 8,803 Plan fiduciary net position as a
percentage of the total OPEB liability
(asset) 121.58% 118.85% 106.82% 119.85% 90.49% 88.88% 80.23% 72.60% Covered employee payroll $ 74,640 $ 72,558 $ 72,524 $ 70,881 $ 76,521 $ 79,682 $ 81,458 $ 60,985 Net OPEB liability as a
percentage of covered
employee payroll N/A N/A N/A N/A 4.21% 4.58% 8.11% 14.43% Notes to Schedule:
* Fiscal year 2017/18 was the first year of implementation, therefore only eight years of information are shown. **Contributions to the OPEB plan are not based on employee pay.

City of Huntington Beach Annual Comprehensive Financial Report 2025 108Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 30, 2025
(IN THOUSANDS)
Last Ten Fiscal Years
CalPERS City Miscellaneous Plan - 99
2024-25 (1) 2023-24 (1) 2022-23 (1) 2021-22 (1) 2020-21 (1) 2019-20 (1) 2018-19 (1) 2017-18
(1,2) 2016-17 (1) 2015-16 (1)
Actuarially determined
contribution $ 7,828 $ 5,808 $ 7,451 $ 6,951 $ 18,086 $ 16,878 $ 14,819 $ 9,734 $ 11,921 $ 11,238 Contributions in relation to
the actuarially determined
contributions (7,828) (5,808) (7,451) (6,951) (18,086) (16,878) (14,819) (9,734) (11,921) (11,238) Contribution deficiency
(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 45,587 $ 52,161 $ 51,089 $ 46,824 $ 45,740 $ 45,952 $ 45,419 $ 33,210 $ 45,118 $ 44,253 Contributions as a
percentage of covered
payroll 17.17% 11.13% 14.58% 14.84% 39.54% 36.73% 32.63% 29.31% 26.42% 25.39% (1) Historical information is required only for measurement periods for which GASB 68 is applicable. (2) The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30, 2018.

Notes to Schedule
Valuation date: 6/30/2013 through 06/30/2023
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/
period For details, see Miscellaneous Plan of the City of Huntington Beach Annual Valuation Report as of June 30, 2024.

Asset valuation method
For 10/1/14-6/30/15, 15 Year Smoothed Market (for details, see June 30, 2012 Funding Valuation Report). For 7/1/15-6/30/24, Fair Value (for details, see the Funding Valuation Reports for the years ended June 30, 2013-2024).

Inflation 2.75% for 10/1/2013-6/30/2019, 2.50% for 7/1/2019-6/30/2020, and 2.30% for 7/1/2020-6/30/2024.

Salary increases Varies by entry age and service
Payroll growth 2.75% for 10/1/2013-6/30/2020, and 2.80% for 7/1/2020-6/30/2024.

Discount Rate
The prescribed discount rate assumption, adopted by the board on November 17, 2021, is 6.90 percent compounded annually (net of investment and administrative expenses) as of June 30, 2024.

Retirement age

For 10/1/13-6/30/16, the probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2007. For 7/1/16-6/30/19, the probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2011. For 7/1/19-6/30/24, the probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Mortality

For 10/1/13-6/30/16, the probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. For 7/1/166/30/19, the probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. For 7/1/16-6/30/18, Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. For 7/1/18-6/30/19, Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. For 7/1/19-6/30/23, the probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For 7/1/23-6/30/24, the probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
*Beginning with the June 30, 2013 valuations, CalPERS employed an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period.

Note: The CalPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes the 5-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy removes the 5-year ramp-down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 109 Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 30, 2025
(IN THOUSANDS)
Last Ten Fiscal Years
CalPERS City Safety Plan - 100
2024-25 2023-24 (1) 2022-23 (1) 2021-22 (1) 2020-21 (1) 2019-20 (1) 2018-19 (1) 2017-18
(1,2) 2016-17 (1) 2015-16 (1)
Actuarially determined
contribution $ 15,704 $ 11,484 $ 13,220 $ 13,579 $ 27,691 $ 25,847 $ 23,062 $ 15,223 $ 19,468 $ 19,129 Contributions in relation to
the actuarially determined
contributions (15,704) (11,484) (13,220) (13,579) (27,691) (25,847) (23,062) (15,223) (19,468) (19,129) Contribution deficiency
(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 62,599 $ 51,351 $ 48,601 $ 48,023 $ 45,665 $ 43,783 $ 43,684 $ 31,943 $ 43,269 $ 42,607 Contributions as a
percentage of covered
payroll 25.09% 22.36% 27.20% 28.28% 60.64% 59.03% 52.79% 47.66% 44.99% 44.90% (1) Historical information is required only for measurement periods for which GASB 68 is applicable. (2) The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30, 2018.

Notes to Schedule
Valuation date: 6/30/2013 through 06/30/2023
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/
period For details, see Safety Plan of the City of Huntington Beach Annual Valuation Report as of June 30, 2023.

Asset valuation method
For 10/1/14-6/30/15, 15 Year Smoothed Market (for details, see June 30, 2012 Funding Valuation Report). For 7/1/15-6/30/23, Fair Value (for details, see the Funding Valuation Reports for the years ended June 30, 2013-2023).

Inflation 2.75% for 10/1/2013-6/30/2019, 2.50% for 7/1/2019-6/30/2020, and 2.30% for 7/1/2020-6/30/2023.

Salary increases Varies by entry age and service.

Payroll growth 2.75% for 10/1/2013-6/30/2020, and 2.80% for 7/1/2020-6/30/2023.

Discount Rate
The prescribed discount rate assumption, adopted by the board on November 17, 2021, is 6.90% compounded annually (net of investment and administrative expenses) as of June 30, 2023.

Retirement age

For 10/1/13-6/30/16, the probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2007. For 7/1/16-6/30/19, the probabilities of retirement are based on the 2014 CalPERS Experience study for the period from 1997 to 2011. For 7/1/19-6/30/24, the probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Mortality

For 10/1/13-6/30/16, the probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. For 7/1/16-6/30/19, the probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2011. For 7/1/16-6/30/18, Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. For 7/1/18-6/30/19, Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. For 7/1/19-6/30/23, the probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For 7/1/23-6/30/24, the probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
*Beginning with the June 30, 2013 valuations, CalPERS employed an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period.

Note: The CalPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes the 5-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy removes the 5-year ramp-down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019.

City of Huntington Beach Annual Comprehensive Financial Report 2025 110Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS
FOR THE YEAR ENDED JUNE 30, 2025
(IN THOUSANDS)
Last Ten Fiscal Years
Supplemental Retirement Plan
2024-25 (1) 2023-24 (1) 2022-23 (1) 2021-22 (1) 2020-21 (1) 2019-20 (1) 2018-19 (1) 2017-18
(1,2) 2016-17 (1) 2015-16 (1)
Actuarially determined
contribution $ 1,202 $ 1,388 $ 1,413 $ 889 $ 933 $ 1,689 $ 2,258 $ 2,879 $ 3,895 $ 3,576 Contributions in relation to
the actuarially determined
contributions (6,120) (1,422) (6,046) (6,006) (1,435) (3,506) (4,962) (3,507) (5,346) (7,277) Contribution deficiency
(excess) $ (4,918) $ (34) $ (4,633) $ (5,117) $ (502) $ (1,817) $ (2,704) $ (628) $ (1,451) $ (3,701) Covered payroll $ 4,821 $ 5,590 $ 5,497 $ 6,670 $ 7,684 $ 8,469 $ 12,863 $ 10,890 $ 17,167 $ 19,517 Contributions as a
percentage of covered
payroll 126.94% 25.44% 109.99% 90.04% 18.68% 41.40% 38.58% 32.20% 31.14% 37.29%

(1) Historical information is required only for measurement periods for which GASB 68 is applicable. (2) The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30, 2018.

Notes to Schedule
Valuation date: 6/30/2023 6/30/2023 6/30/2021 6/30/2021 6/30/2019 6/30/2019 9/30/2017 9/30/2017 9/30/2015 9/30/2013

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal, Level Percentage of Payroll Amortization method/
period

9/30/12 UAAL: fixed 10-year period, Gains/Losses: fixed 15-year period, Discount rate change loss: 10-year period, 6/30/18 UAAL: fixed 5-year period fresh start. 19-year closed period for 2021/2022. 20-year fixed period for 2022/23. 19-year fixed period for 2023/24. 18-year fixed period for 2024/25. Level dollar amortization.

Asset valuation method Market value of assets.

Inflation 3% for 10/1/2013-6/30/2020 and 2.50% per annum for 7/1/2020-6/30/2025.

Salary increases Aggregate - 2.75% annually. Merit - CalPERS 2000-2019 Experience Study.

Payroll growth

Merit - CalPERS 1997-2011 Experience Study plus 3.25% aggregate increase for the October 1, 2013 to June 30, 2018 measurement period. 3% aggregate increase for the July 1, 2018 - June 30, 2019 measurement period. Merit - CalPERS 1997-2015 Experience Study plus 2.75% annually increase for the July 1, 2021 - June 30, 2023 period. Merit - CalPERS 2000-2019 Experience Study plus 2.75% annually increase for the July 1, 2023 -June 30, 2025 period.

Investment rate of return

6.5%, net of pension plan investment and administrative expenses, including inflation for the October 1, 2013 to June 30, 2018 measurement period. 6.25%, net of pension plan investment and administrative expenses, for the July 1, 2019 - June 30, 2022 measurement period. 5.50%, net of pension plan investment and administrative expenses, for the July 1, 2022 - June 30, 2023 measurement period. 5.75%, net of pension plan investment and administrative expenses, for the July 1, 2023 - June 30, 2024 measurement period.

Retirement age The probabilities of retirement are based on the CalPERS 1997-2015 Experience Study.

Mortality

The probabilities of mortality are based on the CalPERS 1997-2015 Experience Study. Pre-retirement and Post-retirement mortality rates include mortality projected fully generational with Scale MP-2019, modified to converge to ultimate improvement rates in 2022 for the October 1, 2013 to June 30, 2018 measurement period. Mortality projected fully generational with Scale MP-2019 for the July 1, 2021 to June 30, 2022 measurement period. Mortality projected fully generational with Scale MP-2021 for the July 1, 2022 to June 30, 2025 measurement period.

Schedule of Money Market Weighted Rate of Return
2025 2024 2023 2022 2021 2020 2019 2019 2017 2016 Annual Money Weighted
Rate of Return, net of
investment expense 3.08% 11.10% 8.37% (15.97%) 26.88% 3.79% 4.79% 4.04% 12.87% 10.20% (1) Historical information is required only for measurement periods for which GASB 68 is applicable. (2) The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from October 1, 2017 to June 30, 2018.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 111 Required Supplemental Information

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CONTRIBUTIONS FOR THE OPEB PLAN
FOR THE YEAR ENDED JUNE 30, 2025
(IN THOUSANDS)
Last Ten Fiscal Years*
Fiscal Year Ended June 30 2025 2024 2023 2022 2021 2020 2019 Actuarially Determined Contribution
(ADC) $ 659 $ 793 $ 856 $ 1,401 $ 1,364 $ 1,793 $ 1,746 Contributions in relation to the
ADC*** (881) (935) (1,997) (2,499) (1,882) (1,959) (2,270) Contribution deficiency (excess) $ (222) $ (142) $ (1,141) $ (1,098) $ (518) $ (166) $ (524) Covered-employee payroll** $ 79,569 $ 74,640 $ 72,558 $ 72,524 $ 70,881 $ 76,521 $ 79,682 Contributions as a percentage of
covered-employee payroll 1.11% 1.25% 2.75% 3.45% 2.66% 2.56% 2.85% Notes to Schedule:

Valuation date: 6/30/2023 6/30/2023 6/30/2021 6/30/2021 6/30/2019 6/30/2017 6/30/2017 Methods and assumptions used to determine contributions:

Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level percent of payroll over a 20-year fixed period Asset Valuation Method Investment gains and losses spread over 5-year fixed period.

Inflation

3% for 10/1/17-6/30/18 and 2.75% per annum for the measurement period 7/1/2018 to 6/30/2022. 2.50% per annum for the measurement period 7/1/2022 to 6/30/2024.

Payroll Growth 2.75% per annum, in aggregate.

Investment Rate of Return

6% for the October 1, 2017 - June 30, 2018 period. 6.25% for the July 1, 2018 - June 30, 2020. 5.50% for the July 1, 2020 - June 30, 2021 period. 5.75% for the July 1, 2021 to June 30, 2023 period. Assumes investing in California Employers’ Retiree Benefit Trust asset allocation Strategy 3, moving to Strategy 2 beginning March 2019.

Healthcare cost-trend rates

8.50%, 1.0% - 2.0% near term increase then decreasing by 0.15%-0.60% per year to trend rate that reflects medical price inflation to an ultimate rate of 3.45% in 2076.

Retirement Age

Tier 1 employees - 2.5% @55 and Tier 2 employees - 2.0% @62. The probabilities of retirement are based on the 2014 CalPERS Experience Study for the period from 1997-2011. Tier 1 employees - 2.5% @55 and Tier 2 employees - 2.0% @ 62. The probabilities of retirement are based on the CalPERS 2000-2019-2015 experience Study for Measurement period as of 6/30/23.

Mortality

Pre-retirement mortality probability based on 2014 CalPERS 1997-2011 Experience Study covering CalPERS participants. Post-retirement mortality probability based on CalPERS Experience Study 2007-2011 covering participants in CalPERS. Mortality based on CalPERS 1997-2015 Experience Study covering participants in CalPERS. Mortality based on CalPERS 2000-2019 Experience Study covering participants in CalPERS. *Historical information is required only for measurement periods for which GASB 75 is applicable. Future years’ information will be displayed up to 10 years as information becomes available.
**For the nine-month period ending June 30, 2018. The City changed its fiscal year effective October 1, 2017. ***Contributions to the OPEB plan are not based on employee pay.

City of Huntington Beach Annual Comprehensive Financial Report 2025 112Required Supplemental Information
Supplementary
Information
Other Governmental Funds
Special Revenue Funds account for revenues and expenditures legally constrained to a specific purpose.
● The Air Quality Fund accounts for revenues from the local agencies used to improve local air quality.
● The Development Impact Fee Fund accounts for fees collected for new developments to be used for transportation, park land acquisition and development, library and other public facilities in an effort to mitigate the impacts of those new developments. ● The Disability Access Fund accounts for the State Mandated Disability Access Fee (SB 1186) to fund increased training certified access specialist (CASp) services for the public and to facilitate compliance with construction related accessibility requirements. ● The Drainage Fund accounts for fees received from developers to construct and maintain the City’s drainage system.
● The Strand Parking Structure Fund accounts for the activities of the Strand Parking Structure. ● The Gas Tax Fund accounts for monies allocated under the Streets and Highways Code of California. Expenditures may be made for any street related purpose allowed under the code. ● The Housing Residual Receipt Fund accounts for residual receipts received for housing activities.
● The Park Acquisition and Development Fund accounts for fees received from developers to develop and maintain the City’s park system.
● The Surf City “3” Fund accounts for revenues and expenditures related to a 1% fee on cable television and other video subscription services to fund the purchase and acquisition of capital equipment and facilities necessary to program and broadcast PEG (public, education and government) events on the City’s cable channel.
● The ELM Automation Fund accounts for automation fee revenues and Enterprise Land Management (ELM) replacement costs and maintenance expenditures. ● The Traffic Congestion Relief Fund accounts for moneys allocated for roadway maintenance as established by Assembly Bill 2928.
● The Traffic Impact Fee Fund accounts for moneys received from the traffic impact fee levied on new developments in the City.
● The Transportation Fund accounts for moneys received from the countywide half cent sales tax and other specific sources to be spent on transportation related expenditures.

Debt Service Funds account for the receipts for and payment of general long-term debt. ● The Public Financing Authority accounts for the activity of the Huntington Beach Public Financing Authority.

Capital Projects Funds account for the acquisition and construction of capital assets other than those financed by proprietary fund types.
● The Affordable Housing In-Lieu Fund accounts for the Affordable Housing In-Lieu Fee from developers of housing projects who have elected to pay the fee in-lieu of building the affordable housing in their project.

City of Huntington Beach Annual Comprehensive Financial Report 2025 114Supplementary Information
● The Lease Capital Project Fund records activity for leases project expenditures. ● The Parking In-Lieu Fund records construction activity from developers who pay fees in-lieu of directly providing parking facilities to the City. ● The Sewer Development Fund accounts for fees received from developers to construct and maintain sewer facilities.
● The Technology Fund accounts for technology infrastructure project expenditures. ● The Senior Center Development accounts for senior center development project expenditures.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 115 Supplementary Information

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2025
(in Thousands)

Special Revenue Funds
Air Quality
Development
Impact Fee
Disability
Access Drainage
Strand Parking
Structures Gas Tax
ASSETS
Cash and Investments $ 759 $ 6,747 $ 547 $ 2,758 $ 4,405 $ 8,199 Cash and Investments with Fiscal
Agent - - - - - -
Taxes Receivable - - - - - 323
Other Receivables, Net 251 51 4 21 33 1,016 Prepaids - - - - - -
Total Assets $ 1,010 $ 6,798 $ 551 $ 2,779 $ 4,438 $ 9,538

LIABILITIES
Accounts Payable $ 19 $ 50 $ 2 $ 110 $ 160 $ 387 Accrued Payroll - 4 - - - 22
Total Liabilities 19 54 2 110 160 409

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 9 - - - - -
Total Deferred Inflows of
Resources 9 - - - - -

FUND BALANCES (DEFICITS)
Nonspendable:

Prepaids - - - - - -
Restricted:

Pollution Remediation - - - - - -
Debt Service - - - - - -
Highways, Streets and
Transportation - - - - - 9,129
Low Income Housing - - - - - -
Air Quality 982 - - - - -
Other Capital Projects - 6,744 - 2,669 - - Other Purposes - - 549 - - -
Committed:

Parks - - - - - -
Other Capital Projects - - - - - -
Other Purposes - - - - 4,278 -
Assigned:

Capital Improvement Reserve - - - - - - Total Fund Balances 982 6,744 549 2,669 4,278 9,129 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 1,010 $ 6,798 $ 551 $ 2,779 $ 4,438 $ 9,538 City of Huntington Beach Annual Comprehensive Financial Report 2025 116Supplementary Information

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2025
(in Thousands)
(continued)
Special Revenue Funds

Housing
Residual
Receipt
Park
Acquisition and
Development Surf City “3”
ELM
Automation
Fund
Traffic
Congestion
Relief
Traffic Impact
Fee
ASSETS
Cash and Investments $ 2,307 $ 8,472 $ 2,102 $ 1,038 $ 2,078 $ 3,742 Cash and Investments with Fiscal
Agent - - - - - -
Taxes Receivable - - 92 - 155 -
Other Receivables, Net 17 63 16 8 26 28 Prepaids - - - - - -
Total Assets $ 2,324 $ 8,535 $ 2,210 $ 1,046 $ 2,259 $ 3,770

LIABILITIES
Accounts Payable $ - $ - $ 10 $ - $ 169 $ 302 Accrued Payroll - - - - - -
Total Liabilities - - 10 - 169 302

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

FUND BALANCES (DEFICITS)
Nonspendable:

Prepaids - - - - - -
Restricted:

Pollution Remediation - 359 - - - -
Debt Service - - - - - -
Highways, Streets and
Transportation - - - - 2,090 3,468
Low Income Housing 2,324 - - - - -
Air Quality - - - - - -
Other Capital Projects - - - - - -
Other Purposes - - 2,200 1,046 - -
Committed:

Parks - 8,176 - - - -
Other Capital Projects - - - - - -
Other Purposes - - - - - -
Assigned:

Capital Improvement Reserve - - - - - - Total Fund Balances 2,324 8,535 2,200 1,046 2,090 3,468 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 2,324 $ 8,535 $ 2,210 $ 1,046 $ 2,259 $ 3,770 Annual Comprehensive Financial Report 2025 City of Huntington Beach 117 Supplementary Information

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2025
(in Thousands)
(continued)
Special Revenue Funds

Debt Service Funds

Capital Projects Funds
Transportation
Total Special
Revenue Funds
Public Financing
Authority
Total Debt
Service Funds
Affordable
Housing In-Lieu
Lease Capital
Project
ASSETS
Cash and Investments $ 5,015 $ 48,169 $ 3,405 $ 3,405 $ 10,479 $ 540 Cash and Investments with Fiscal
Agent - - 1,173 1,173 - 1,874
Taxes Receivable 1,445 2,015 - - - -
Other Receivables, Net 31 1,565 14 14 79 12 Prepaids - - - - - 4,576
Total Assets $ 6,491 $ 51,749 $ 4,592 $ 4,592 $ 10,558 $ 7,002

LIABILITIES
Accounts Payable $ 156 $ 1,365 $ 2 $ 2 $ - $ - Accrued Payroll 31 57 - - - -
Total Liabilities 187 1,422 2 2 - -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 1,445 1,454 - - - - Total Deferred Inflows of
Resources 1,445 1,454 - - - -

FUND BALANCES (DEFICITS)
Nonspendable:

Prepaids - - - - - 4,576
Restricted:

Pollution Remediation - 359 - - - -
Debt Service - - 4,590 4,590 - -
Highways, Streets and
Transportation 4,859 19,546 - - - -
Low Income Housing - 2,324 - - 10,558 - Air Quality - 982 - - - -
Other Capital Projects - 9,413 - - - 2,426 Other Purposes - 3,795 - - - -
Committed:

Parks - 8,176 - - - -
Other Capital Projects - - - - - -
Other Purposes - 4,278 - - - -
Assigned:

Capital Improvement Reserve - - - - - - Total Fund Balances 4,859 48,873 4,590 4,590 10,558 7,002 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 6,491 $ 51,749 $ 4,592 $ 4,592 $ 10,558 $ 7,002 City of Huntington Beach Annual Comprehensive Financial Report 2025 118Supplementary Information

COMBINING BALANCE SHEET

OTHER GOVERNMENTAL FUNDS
JUNE 30, 2025
(in Thousands)
(continued)
Capital Projects Funds
Total Parking In-Lieu
Sewer
Development Technology
Sr. Center
Development
Total Capital
Projects Funds
ASSETS
Cash and Investments $ 1,216 $ 2,191 $ 5,801 $ 224 $ 20,451 $ 72,025 Cash and Investments with Fiscal
Agent - - - - 1,874 3,047
Taxes Receivable - - - - - 2,015
Other Receivables, Net - 16 44 2 153 1,732 Prepaids - - 589 - 5,165 5,165
Total Assets $ 1,216 $ 2,207 $ 6,434 $ 226 $ 27,643 $ 83,984

LIABILITIES
Accounts Payable $ - $ - $ 3 $ - $ 3 $ 1,370 Accrued Payroll - - - - - 57
Total Liabilities - - 3 - 3 1,427

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - - - 1,454
Total Deferred Inflows of
Resources - - - - - 1,454

FUND BALANCES (DEFICITS)
Nonspendable:

Prepaids - - 589 - 5,165 5,165
Restricted:

Pollution Remediation - - - - - 359
Debt Service - - - - - 4,590
Highways, Streets and
Transportation - - - - - 19,546
Low Income Housing - - - - 10,558 12,882 Air Quality - - - - - 982
Other Capital Projects - - - 226 2,652 12,065 Other Purposes - - - - - 3,795
Committed:

Parks - - - - - 8,176
Other Capital Projects 1,216 2,207 - - 3,423 3,423 Other Purposes - - - - - 4,278
Assigned:

Capital Improvement Reserve - - 5,842 - 5,842 5,842 Total Fund Balances 1,216 2,207 6,431 226 27,640 81,103 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 1,216 $ 2,207 $ 6,434 $ 226 $ 27,643 $ 83,984 Annual Comprehensive Financial Report 2025 City of Huntington Beach 119 Supplementary Information

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)

Special Revenue Funds
Air Quality
Development
Impact Fee
Disability
Access Drainage
Strand Parking
Structures Gas Tax

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - - - - -
Licenses and Permits - - 72 - - -
Use of Money and Property (Loss) 29 219 17 210 1,824 254 Intergovernmental 424 - - - - 9,088
Charges for Current Services - 556 - 234 - - Other - - - - - -
Total Revenues 453 775 89 444 1,824 9,342

EXPENDITURES
Current:

City Manager - - - - - -
Finance - - 11 - - -
Community Development - - - - 1,168 - Fire - - - - - -
Information Services - - - - - -
Police - 230 - - - -
Community Services - 631 - - - -
Library Services - 69 - - - -
Public Works 299 - - 1,371 - 8,963
Debt Service:

Principal - - - - - -
Interest - - - - - -
Total Expenditures 299 930 11 1,371 1,168 8,963 Excess (Deficiency) of Revenues Over
(Under) Expenditures 154 (155) 78 (927) 656 379

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - (530) -
Total Other Financing Uses - - - - (530) - Net Change in Fund Balances 154 (155) 78 (927) 126 379 Fund Balances - Beginning of Year 828 6,899 471 3,596 4,152 8,750 Fund Balances - End of Year $ 982 $ 6,744 $ 549 $ 2,669 $ 4,278 $ 9,129 City of Huntington Beach Annual Comprehensive Financial Report 2025 120Supplementary Information

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
(continued)
Special Revenue Funds

Housing
Residual
Receipt
Park
Acquisition and
Development Surf City “3”
ELM
Automation
Fund
Traffic
Congestion
Relief
Traffic Impact
Fee

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ -
Other Taxes - - 393 - - -
Licenses and Permits - - - - - -
Use of Money and Property (Loss) 78 486 70 63 61 130 Intergovernmental - - - - 1,895 -
Charges for Current Services - 843 - 639 - 148 Other 72 - - - 36 -
Total Revenues 150 1,329 463 702 1,992 278

EXPENDITURES
Current:

City Manager - - 386 - - -
Finance - - - - - -
Community Development - - - - - -
Fire - - - - - -
Information Services - - - 675 - -
Police - - - - - -
Community Services - 272 - - - -
Library Services - - - - - -
Public Works - - - - 1,385 1,115
Debt Service:

Principal - - - - - -
Interest - - - - - -
Total Expenditures - 272 386 675 1,385 1,115 Excess (Deficiency) of Revenues Over
(Under) Expenditures 150 1,057 77 27 607 (837)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - -
Transfers Out - - - - - -
Total Other Financing Sources (Uses) - - - - - - Net Change in Fund Balances 150 1,057 77 27 607 (837) Fund Balances - Beginning of Year 2,174 7,478 2,123 1,019 1,483 4,305 Fund Balances - End of Year $ 2,324 $ 8,535 $ 2,200 $ 1,046 $ 2,090 $ 3,468 Annual Comprehensive Financial Report 2025 City of Huntington Beach 121 Supplementary Information

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
(continued)
Special Revenue Funds

Debt Service Funds

Capital Projects Funds
Transportation
Total Special
Revenue Funds
Public
Financing
Authority
Total Debt
Service Funds
Affordable
Housing
In-Lieu
Lease Capital
Project

REVENUES
Sales Taxes $ 3,074 $ 3,074 $ - $ - $ - $ -
Other Taxes - 393 - - - -
Licenses and Permits - 72 - - 27 -
Use of Money and Property (Loss) 169 3,610 71 71 400 91 Intergovernmental - 11,407 - - - -
Charges for Current Services - 2,420 - - - - Other - 108 - - - -
Total Revenues 3,243 21,084 71 71 427 91

EXPENDITURES
Current:

City Manager - 386 - - - -
Finance - 11 6 6 - -
Community Development - 1,168 - - - -
Fire - - - - - 153
Information Services - 675 - - - -
Police - 230 - - - -
Community Services - 903 - - - -
Library Services - 69 - - - -
Public Works 3,521 16,654 - - - -
Debt Service:

Principal - - 2,295 2,295 - -
Interest - - 660 660 - -
Total Expenditures 3,521 20,096 2,961 2,961 - 153 Excess (Deficiency) of Revenues Over
(Under) Expenditures (278) 988 (2,890) (2,890) 427 (62)

OTHER FINANCING SOURCES (USES)
Transfers In - - 2,968 2,968 - -
Transfers Out - (530) - - - -
Total Other Financing Sources (Uses) - (530) 2,968 2,968 - - Net Change in Fund Balances (278) 458 78 78 427 (62) Fund Balances - Beginning of Year 5,137 48,415 4,512 4,512 10,131 7,064 Fund Balances - End of Year $ 4,859 $ 48,873 $ 4,590 $ 4,590 $ 10,558 $ 7,002 City of Huntington Beach Annual Comprehensive Financial Report 2025 122Supplementary Information

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
(continued)
Capital Projects Funds
Total Parking In-Lieu
Sewer
Development Technology
Sr. Center
Development
Total Capital
Projects Funds

REVENUES
Sales Taxes $ - $ - $ - $ - $ - $ 3,074
Other Taxes - - - - - 393
Licenses and Permits 289 - - - 316 388
Use of Money and Property (Loss) - 131 387 226 1,235 4,916 Intergovernmental - 12 - - 12 11,419
Charges for Current Services - 511 - - 511 2,931 Other - - - - - 108
Total Revenues 289 654 387 226 2,074 23,229

EXPENDITURES
Current:

City Manager - - - - - 386
Finance - - - - - 17
Community Development 12 - - - 12 1,180 Fire - - - - 153 153
Information Services - - 718 - 718 1,393 Police - - - - - 230
Community Services - - - - - 903
Library Services - - - - - 69
Public Works - 374 - - 374 17,028
Debt Service:

Principal - - - - - 2,295
Interest - - - - - 660
Total Expenditures 12 374 718 - 1,257 24,314 Excess (Deficiency) of Revenues Over
(Under) Expenditures 277 280 (331) 226 817 (1,085)

OTHER FINANCING SOURCES (USES)
Transfers In - - - - - 2,968
Transfers Out - - - - - (530)
Total Other Financing Sources - - - - - 2,438 Net Change in Fund Balances 277 280 (331) 226 817 1,353 Fund Balances - Beginning of Year 939 1,927 6,762 - 26,823 79,750 Fund Balances - End of Year $ 1,216 $ 2,207 $ 6,431 $ 226 $ 27,640 $ 81,103 Annual Comprehensive Financial Report 2025 City of Huntington Beach 123 Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Air Quality
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 29 $ 29 Intergovernmental 250 250 424 174
Total Revenues 250 250 453 203

EXPENDITURES
Current:

Public Works 250 1,265 299 966
Total Expenditures 250 1,265 299 966
Excess (Deficiency) of Revenues Over (Under) Expenditures - (1,015) 154 1,169 Net Change in Fund Balances - (1,015) 154 1,169 Fund Balances - Beginning of Year 828 828 828 - Fund Balances (Deficits) - End of Year $ 828 $ (187) $ 982 $ 1,169 Development Impact Fee
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 219 $ 219 Charges for Current Services 559 559 556 (3) Total Revenues 559 559 775 216

EXPENDITURES
Current:

Fire - 826 - 826
Police - 337 230 107
Community Services 1,001 2,337 631 1,706
Library Services 400 647 69 578
Total Expenditures 1,401 4,147 930 3,217
Deficiency of Revenues Under Expenditures (842) (3,588) (155) 3,433

OTHER FINANCING SOURCES (USES)
Transfers Out (17) - - -
Total Other Financing Uses (17) - - -
Net Change in Fund Balances (859) (3,588) (155) 3,433 Fund Balances - Beginning of Year 6,899 6,899 6,899 - Fund Balances - End of Year $ 6,040 $ 3,311 $ 6,744 $ 3,433 City of Huntington Beach Annual Comprehensive Financial Report 2025 124Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Disability Access
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Licenses and Permits $ 74 $ 74 $ 72 $ (2)
Use of Money and Property (Loss) - - 17 17
Total Revenues 74 74 89 15

EXPENDITURES
Current:

Finance 74 74 11 63
Total Expenditures 74 74 11 63
Excess of Revenues Over Expenditures - - 78 78 Net Change in Fund Balances - - 78 78
Fund Balances - Beginning of Year 471 471 471 - Fund Balances - End of Year $ 471 $ 471 $ 549 $ 78 Drainage
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 210 $ 210 Charges for Current Services 200 200 234 34 Total Revenues 200 200 444 244

EXPENDITURES
Current:

Public Works - 3,420 1,371 2,049
Total Expenditures - 3,420 1,371 2,049
Excess (Deficiency) of Revenues Over (Under) Expenditures 200 (3,220) (927) 2,293 Net Change in Fund Balances 200 (3,220) (927) 2,293 Fund Balances - Beginning of Year 3,596 3,596 3,596 - Fund Balances - End of Year $ 3,796 $ 376 $ 2,669 $ 2,293 Annual Comprehensive Financial Report 2025 City of Huntington Beach 125 Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Strand Parking Structure
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ 1,630 $ 1,630 $ 1,824 $ 194 Total Revenues 1,630 1,630 1,824 194

EXPENDITURES
Current:

Community Development 1,189 1,506 1,168 338 Total Expenditures 1,189 1,506 1,168 338
Excess of Revenues Over Expenditures 441 124 656 532

OTHER FINANCING SOURCES (USES)
Transfers Out (530) (530) (530) -
Total Other Financing Uses (530) (530) (530) - Net Change in Fund Balances (89) (406) 126 532 Fund Balances - Beginning of Year 4,152 4,152 4,152 - Fund Balances - End of Year $ 4,063 $ 3,746 $ 4,278 $ 532 Gas Tax
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 254 $ 254 Intergovernmental 8,787 8,787 9,088 301
Total Revenues 8,787 8,787 9,342 555

EXPENDITURES
Current:

Public Works 8,473 14,757 8,963 5,794
Total Expenditures 8,473 14,757 8,963 5,794 Excess (Deficiency) of Revenues Over (Under) Expenditures 314 (5,970) 379 6,349

OTHER FINANCING SOURCES (USES)
Transfers Out (104) - - -
Total Other Financing Uses (104) - - -
Net Change in Fund Balances 210 (5,970) 379 6,349 Fund Balances - Beginning of Year 8,750 8,750 8,750 - Fund Balances - End of Year $ 8,960 $ 2,780 $ 9,129 $ 6,349 City of Huntington Beach Annual Comprehensive Financial Report 2025 126Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Housing Residual Receipt
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 78 $ 78 Other 30 30 72 42
Total Revenues 30 30 150 120

EXPENDITURES
Current:

Community Development 30 35 - 35
Total Expenditures 30 35 - 35
Excess (Deficiency) of Revenues Over (Under) Expenditures - (5) 150 155 Net Change in Fund Balances - (5) 150 155
Fund Balances - Beginning of Year 2,174 2,174 2,174 - Fund Balances - End of Year $ 2,174 $ 2,169 $ 2,324 $ 155 Park Acquisition and Development
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 486 $ 486 Charges for Current Services 400 400 843 443 Total Revenues 400 400 1,329 929

EXPENDITURES
Current:

Community Services 2,865 3,419 272 3,147
Total Expenditures 2,865 3,419 272 3,147
Excess (Deficiency) of Revenues Over (Under) Expenditures (2,465) (3,019) 1,057 4,076 Net Change in Fund Balances (2,465) (3,019) 1,057 4,076 Fund Balances - Beginning of Year 7,478 7,478 7,478 - Fund Balances - End of Year $ 5,013 $ 4,459 $ 8,535 $ 4,076 Annual Comprehensive Financial Report 2025 City of Huntington Beach 127 Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Surf City “3”
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Other Taxes $ 480 $ 480 $ 393 $ (87)
Use of Money and Property (Loss) - - 70 70
Total Revenues 480 480 463 (17)

EXPENDITURES
Current:

City Manager 150 494 386 108
Total Expenditures 150 494 386 108
Excess (Deficiency) of Revenues Over (Under) Expenditures 330 (14) 77 91 Net Change in Fund Balances 330 (14) 77 91
Fund Balances - Beginning of Year 2,123 2,123 2,123 - Fund Balances - End of Year $ 2,453 $ 2,109 $ 2,200 $ 91 ELM Automation Fund
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 63 $ 63 Charges for Current Services 450 450 639 189 Total Revenues 450 450 702 252

EXPENDITURES
Current:

Information Services 845 845 675 170
Total Expenditures 845 845 675 170
Excess (Deficiency) of Revenues Over (Under) Expenditures (395) (395) 27 422 Net Change in Fund Balances (395) (395) 27 422 Fund Balances - Beginning of Year 1,019 1,019 1,019 - Fund Balances - End of Year $ 624 $ 624 $ 1,046 $ 422 City of Huntington Beach Annual Comprehensive Financial Report 2025 128Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Traffic Congestion Relief
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 61 $ 61 Intergovernmental 1,762 1,762 1,895 133
Other - - 36 36
Total Revenues 1,762 1,762 1,992 230

EXPENDITURES
Current:

Public Works 1,140 2,441 1,385 1,056
Total Expenditures 1,140 2,441 1,385 1,056
Excess (Deficiency) of Revenues Over (Under) Expenditures 622 (679) 607 1,286 Net Change in Fund Balances 622 (679) 607 1,286 Fund Balances - Beginning of Year 1,483 1,483 1,483 - Fund Balances - End of Year $ 2,105 $ 804 $ 2,090 $ 1,286 Traffic Impact Fee
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 130 $ 130 Charges for Current Services 100 100 148 48 Total Revenues 100 100 278 178

EXPENDITURES
Current:

Public Works 155 3,154 1,115 2,039
Total Expenditures 155 3,154 1,115 2,039
Deficiency of Revenues Under Expenditures (55) (3,054) (837) 2,217 Net Change in Fund Balances (55) (3,054) (837) 2,217 Fund Balances - Beginning of Year 4,305 4,305 4,305 - Fund Balances - End of Year $ 4,250 $ 1,251 $ 3,468 $ 2,217 Annual Comprehensive Financial Report 2025 City of Huntington Beach 129 Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Transportation
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Sales Taxes $ 5,118 $ 5,118 $ 3,074 $ (2,044)
Use of Money and Property (Loss) - - 169 169 Total Revenues 5,118 5,118 3,243 (1,875)

EXPENDITURES
Current:

Public Works 5,347 6,569 3,521 3,048
Total Expenditures 5,347 6,569 3,521 3,048
Deficiency of Revenues Under Expenditures (229) (1,451) (278) 1,173

OTHER FINANCING SOURCES (USES)
Transfers Out (181) - - -
Total Other Financing Uses (181) - - -
Net Change in Fund Balances (410) (1,451) (278) 1,173 Fund Balances - Beginning of Year 5,137 5,137 5,137 - Fund Balances - End of Year $ 4,727 $ 3,686 $ 4,859 $ 1,173 Public Financing Authority
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 71 $ 71 Total Revenues - - 71 71

EXPENDITURES
Current:

Finance 13 14 6 8
Debt Service:

Principal 2,295 2,295 2,295 -
Interest 660 660 660 -
Total Expenditures 2,968 2,969 2,961 8
Deficiency of Revenues Under Expenditures (2,968) (2,969) (2,890) 79

OTHER FINANCING SOURCES (USES)
Transfers In 2,968 2,968 2,968 -
Total Other Financing Sources 2,968 2,968 2,968 - Net Change in Fund Balances - (1) 78 79
Fund Balances - Beginning of Year 4,512 4,512 4,512 - Fund Balances - End of Year $ 4,512 $ 4,511 $ 4,590 $ 79 City of Huntington Beach Annual Comprehensive Financial Report 2025 130Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Affordable Housing In-Lieu
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Licenses and Permits $ - $ - $ 27 $ 27
Use of Money and Property (Loss) 100 100 400 300 Total Revenues 100 100 427 327
Excess of Revenues Over Expenditures 100 100 427 327 Net Change in Fund Balances 100 100 427 327 Fund Balances - Beginning of Year 10,131 10,131 10,131 - Fund Balances - End of Year $ 10,231 $ 10,231 $ 10,558 $ 327 Lease Capital Project
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 91 $ 91 Total Revenues - - 91 91

EXPENDITURES
Current:

Fire - 6,011 153 5,858
Total Expenditures - 6,011 153 5,858
Deficiency of Revenues Under Expenditures - (6,011) (62) 5,949 Net Change in Fund Balances - (6,011) (62) 5,949 Fund Balances - Beginning of Year 7,064 7,064 7,064 - Fund Balances - End of Year $ 7,064 $ 1,053 $ 7,002 $ 5,949 Annual Comprehensive Financial Report 2025 City of Huntington Beach 131 Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Parking In-Lieu
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Licenses and Permits $ 57 $ 57 $ 289 $ 232
Total Revenues 57 57 289 232

EXPENDITURES
Current:

Community Development - 49 12 37
Total Expenditures - 49 12 37
Excess of Revenues Over Expenditures 57 8 277 269 Net Change in Fund Balances 57 8 277 269
Fund Balances - Beginning of Year 939 939 939 - Fund Balances - End of Year $ 996 $ 947 $ 1,216 $ 269 Sewer Development
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 131 $ 131 Intergovernmental 12 12 12 -
Charges for Current Services 155 155 511 356 Total Revenues 167 167 654 487

EXPENDITURES
Current:

Public Works - 700 374 326
Total Expenditures - 700 374 326
Excess (Deficiency) of Revenues Over (Under) Expenditures 167 (533) 280 813 Net Change in Fund Balances 167 (533) 280 813 Fund Balances - Beginning of Year 1,927 1,927 1,927 - Fund Balances - End of Year $ 2,094 $ 1,394 $ 2,207 $ 813 City of Huntington Beach Annual Comprehensive Financial Report 2025 132Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Technology
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 387 $ 387 Total Revenues - - 387 387

EXPENDITURES
Current:

Information Services - 2,255 718 1,537
Total Expenditures - 2,255 718 1,537
Deficiency of Revenues Under Expenditures - (2,255) (331) 1,924 Net Change in Fund Balances - (2,255) (331) 1,924 Fund Balances - Beginning of Year 6,762 6,762 6,762 - Fund Balances - End of Year $ 6,762 $ 4,507 $ 6,431 $ 1,924 Sr. Center Development
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 226 $ 226 Total Revenues - - 226 226
Excess of Revenues Over Expenditures - - 226 226 Net Change in Fund Balances - - 226 226
Fund Balances (Deficits) - Beginning of Year - - - - Fund Balances - End of Year $ - $ - $ 226 $ 226 Annual Comprehensive Financial Report 2025 City of Huntington Beach 133 Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
LMIHAF Capital Projects Fund
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ 200 $ 200 $ 1,204 $ 1,004 Intergovernmental - - 1,719 1,719
Total Revenues 200 200 2,923 2,723

EXPENDITURES
Current:

Community Development 408 1,270 1,206 64
Total Expenditures 408 1,270 1,206 64
Excess (Deficiency) of Revenues Over (Under) Expenditures (208) (1,070) 1,717 2,787

OTHER FINANCING SOURCES (USES)
Transfers In 1,719 1,719 - (1,719)
Transfers Out (42) - - -
Total Other Financing Sources 1,677 1,719 - (1,719) Net Change in Fund Balances 1,469 649 1,717 1,068 Fund Balances - Beginning of Year 7,910 7,910 7,910 - Fund Balances - End of Year $ 9,379 $ 8,559 $ 9,627 $ 1,068 Pension Liability Debt Service Fund
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Property Taxes $ 7,148 $ 7,148 $ 8,858 $ 1,710
Use of Money and Property (Loss) - - 1,258 1,258 Charges for Current Services - 15,428 15,727 299 Total Revenues 7,148 22,576 25,843 3,267

EXPENDITURES
Debt Service:

Principal 13,665 13,665 12,724 941
Interest 8,911 8,911 8,360 551
Total Expenditures 22,576 22,576 21,084 1,492 Excess (Deficiency) of Revenues Over (Under) Expenditures (15,428) - 4,759 4,759

OTHER FINANCING SOURCES (USES)
Transfers In 16,928 1,500 1,500 -
Total Other Financing Sources 16,928 1,500 1,500 - Net Change in Fund Balances 1,500 1,500 6,259 4,759 Fund Balances - Beginning of Year 36,119 36,119 36,119 - Fund Balances - End of Year $ 37,619 $ 37,619 $ 42,378 $ 4,759 City of Huntington Beach Annual Comprehensive Financial Report 2025 134Supplementary Information

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Infrastructure
Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)

REVENUES
Use of Money and Property (Loss) $ - $ - $ 1,868 $ 1,868 Intergovernmental - - 15 15
Other - - 11 11
Total Revenues - - 1,894 1,894

EXPENDITURES
Current:

Community Services 158 158 160 (2)
Public Works 14,129 43,187 19,688 23,499
Total Expenditures 14,287 43,345 19,848 23,497 Deficiency of Revenues Under Expenditures (14,287) (43,345) (17,954) 25,391

OTHER FINANCING SOURCES (USES)
Transfers In 14,500 17,540 17,539 (1)
Transfers Out (212) - - -
Total Other Financing Sources 14,288 17,540 17,539 (1) Net Change in Fund Balances 1 (25,805) (415) 25,390 Fund Balances - Beginning of Year 29,397 29,397 29,397 - Fund Balances - End of Year $ 29,398 $ 3,592 $ 28,982 $ 25,390 Annual Comprehensive Financial Report 2025 City of Huntington Beach 135 Supplementary Information

THE PAGE INTENTIONALLY LEFT BLANK

City of Huntington Beach Annual Comprehensive Financial Report 2025 136
Internal Service Funds
Internal Services Funds are used to accumulate and allocate costs internally among the City’s various functions.
● The Self Insurance Workers’ Comp Fund accounts for the City’s self insurance workers’ compensation program.
● The Self Insurance General Liability Fund accounts for the City’s self insurance general liability program.
● The Equipment Replacement Fund accounts for the City’s equipment replacement needs.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 137 Supplementary Information

STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
June 30, 2025
(In Thousands)
Governmental Activities

Self Insurance
Workers’ Comp
Self Insurance
General Liability
Equipment
Replacement
Fund
Internal Service
Fund Total
ASSETS
Current Assets:

Cash and Investments $ 33,881 $ 26,908 $ 18,276 $ 79,065 Other Receivables, Net 236 202 122 560
Prepaids 600 - 1,257 1,857
Total Current Assets 34,717 27,110 19,655 81,482 Non-Current Assets:

Capital Assets:

Buildings and Improvements - - 67 67
Machinery and Equipment - - 20,881 20,881
Infrastructure - - 290 290
Less Accumulated Depreciation - - (8,172) (8,172) Total Capital Assets - - 13,066 13,066
Net Other Postemployment Benefits Asset 21 9 - 30 Net Pension Asset 19 - - 19
Total Non-Current Assets 40 9 13,066 13,115 Total Assets 34,757 27,119 32,721 94,597

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 207 - - 207 Deferred Outflows Related to Other Postemployment Benefits 13 6 - 19 Total Deferred Outflows of Resources 220 6 - 226 Total Assets and Deferred Outflows of Resources $ 34,977 $ 27,125 $ 32,721 $ 94,823

LIABILITIES
Current Liabilities:

Accounts Payable $ 224 $ 31 $ 68 $ 323
Accrued Payroll 8 7 - 15
Interest Payable 1 - - 1
Long-Term Obligations Due Within One Year:

Current Portion of Claims Payable 10,017 5,454 - 15,471 Current Portion of Compensated Absences 15 2 - 17 Current Portion of Pension Obligation Bonds 44 - - 44 Total Current Liabilities 10,309 5,494 68 15,871 Non-Current Liabilities:

Long-Term Obligations Due in More than One Year:

Claims Payable 56,715 7,544 - 64,259
Compensated Absences 39 6 - 45
Pension Obligation Bonds 856 - - 856
Net Pension Liability 543 - - 543
Total Non-Current Liabilities 58,153 7,550 - 65,703 Total Liabilities 68,462 13,044 68 81,574

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 10 - - 10 Deferred Inflows Related to Other Postemployment Benefits 23 10 - 33 Total Deferred Inflows of Resources 33 10 - 43

NET POSITION
Investment in Capital Assets - - 13,066 13,066 Restricted for:

OPEB Benefits 13 6 - 19
Unrestricted (33,531) 14,065 19,587 121
Total Net Position (33,518) 14,071 32,653 13,206 Total Liabilities, Deferred Inflows of Resources, and Net Position $ 34,977 $ 27,125 $ 32,721 $ 94,823 City of Huntington Beach Annual Comprehensive Financial Report 2025 138Supplementary Information

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Governmental Activities
Self Insurance
Workers’ Comp
Self Insurance
General Liability
Equipment
Replacement
Fund
Internal Service
Fund Total

OPERATING REVENUES
Fees and Charges for Service $ 14 ,664 $ 17,552 $ 10,105 $ 42,321 Other 1,391 50 - 1,441
Total Operating Revenues 16,055 17,602 10,105 43,762

OPERATING EXPENSES
Supplies and Operations 2,355 393 2,600 5,348
Claims and Judgments 22,343 10,074 - 32,417
Depreciation - - 2 ,537 2,537
Total Operating Expenses 24,698 10,467 5,137 40,302
Operating Income (Loss) (8,643) 7, 135 4,968 3,460

NON-OPERATING REVENUES (EXPENSES)
Investment Income 1,569 910 837 3,316
Interest Expense ( 25) - - ( 25)
Total Non-Operating Revenues 1,544 910 837 3,291
Income (Loss) Before Transfers (7,099) 8,045 5,805 6 ,751 Change in Net Position (7,099) 8,045 5,805 6 ,751
Net Position - Beginning of Year, as Previously Reported (26,415) 6,026 26,848 6,459 Prior Year Corrections (4) - - (4)
Net Position - Beginning of Year, as Restated (26,419) 6,026 26,848 6,455 Net Position - End of Year $ (33,518) $ 14,071 $ 32,653 $ 1 3,206 Annual Comprehensive Financial Report 2025 City of Huntington Beach 139 Supplementary Information

STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(In Thousands)
Governmental Activities

Self Insurance
Workers’ Comp
Self Insurance
General Liability
Equipment
Replacement
Fund
Internal Service
Fund Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 17,052 $ 17,502 $ 10,040 $ 44,594 Cash Paid to Employees for Services (262) (169) - (431) Cash Paid to Suppliers of Goods and Services (9,299) (7,047) (2,474) (18,820) Net Cash and Investment Provided by Operating Activities 7,491 10,286 7,566 25,343

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Debt Service (43) - - (43)
Interest Paid (24) - - (24)
Net Cash and Investments Used by Noncapital Financing
Activities (67) - - (67)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of Capital Assets - - (4,401) (4,401) Net Cash and Investments Used by Capital and Related Financing Activities - - (4,401) (4,401)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 1,569 910 837 3,316
Net Cash and Investments Provided by Investing Activities 1,569 910 837 3,316 Net Increase in Cash and Investments 8,993 11,196 4,002 24,191 Cash and Investments - Beginning of Year 24,888 15,712 14,274 54,874 Cash and Investments - End of Year $ 33,881 $ 26,908 $ 18,276 $ 79,065

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH

AND INVESTMENTS PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (8,643) $ 7,135 $ 4,968 $ 3,460 Adjustments to Reconcile Operating Income (Loss) to Net Cash and Investments Provided (Used) by Operating Activities Depreciation - - 2,537 2,537
(Increase) Decrease in Other Receivables, Net 997 (100) (65) 832 Decrease in Prepaids - - 638 638
(Increase) in Net Other Postemployment Benefits Asset (4) (1) - (5) Increase (Decrease) in Accounts Payable (361) 21 (512) (852) Increase in Accrued Payroll 4 1 - 5
Increase in Claims Payable 15,401 3,234 - 18,635 Increase (Decrease) in Compensated Absences 2 (3) - (1) Decrease in Deferred Pension Outflow 162 - - 162 Increase in Deferred Pension Inflow 9 - - 9 (Decrease) in Net Pension Liability (57) - - (57) Decrease in Deferred Other Postemployment Benefits Outflow 6 2 - 8 (Decrease) in Deferred Other Postemployment Benefits Inflow (6) (3) - (9) (Increase) Decrease in Net Pension Asset (19) - - (19) Net Cash and Investments Provided by Operating Activities $ 7,491 $ 10,286 $ 7,566 $ 25,343

NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
There were no noncash investing, capital, or financing activities during the year ended June 30, 2025.

City of Huntington Beach Annual Comprehensive Financial Report 2025 140Supplementary Information
Fiduciary Funds
Fiduciary Funds account for assets held by the City as a custodian for other organizations or individuals.
● The Community Facilities Districts Funds accounts for the debt service activity of the City’s three community
● facilities districts.
● The Huntington Beach Business Improvement District Fund accounts for the activities of the City’s business improvement district.
● The Bella Terra Parking Structure Fund accounts for the activities of the Bella Terra Parking Structure.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 141 Supplementary Information

COMBINING STATEMENT OF FIDUCIARY FUND NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
(in Thousands)
Custodial Funds

Community
Facilities
Districts
Business
Improvement
Districts
Parking
Structure - Bella
Terra
Total Custodial
Funds
Assets
Cash and Investments $ 1,527 $ 1,196 $ 2,084 $ 4,807 Cash and Investments with Fiscal Agent 1,693 - 1,764 3,457 Accounts Receivable, Net 17 1,079 17 1,113
Total Assets 3,237 2,275 3,865 9,377
Liabilities
Current Liabilities:

Accounts Payable - 1,944 319 2,263
Total Current Liabilities - 1,944 319 2,263 Total Liabilities - 1,944 319 2,263
Net position
Restricted for:

Individuals and Organizations 3,237 331 3,546 7,114 Total Net Position $ 3,237 $ 331 $ 3,546 $ 7,114 City of Huntington Beach Annual Comprehensive Financial Report 2025 142Supplementary Information

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
(in Thousands)
Custodial Funds

Community
Facilities
Districts
Business
Improvement
Districts
Parking
Structure - Bella
Terra
Total Custodial
Funds
Additions
Special Assessments or Special Taxes Collected from Property Owners $ 1,574 $ - $ - $ 1,574
Business Improvement District Taxes - 10,266 - 10,266 Parking Assessments - - 3,019 3,019
Total Additions Before Investment Income 1,574 10,266 3,019 14,859 Investment Income (Loss):

Investment Income 78 - 106 184
Net Investment Income 78 - 106 184
Total Additions 1,652 10,266 3,125 15,043
Deductions
Administrative Costs 21 - - 21
Payments to Other Organizations - 10,172 1,402 11,574 Interest and Fiscal Agency Expenses 531 - 646 1,177 Principal 980 - 1,010 1,990
Total Deductions 1,532 10,172 3,058 14,762
Change in Net Position 120 94 67 281
Net Position - Beginning of Year 3,117 237 3,479 6,833 Net Position - End of Year $ 3,237 $ 331 $ 3,546 $ 7,114 Annual Comprehensive Financial Report 2025 City of Huntington Beach 143 Supplementary Information

THE PAGE INTENTIONALLY LEFT BLANK

City of Huntington Beach Annual Comprehensive Financial Report 2025 144
Statistical
Section
Annual Comprehensive Financial Report 2025

THE PAGE INTENTIONALLY LEFT BLANK

City of Huntington Beach Annual Comprehensive Financial Report 2025 146
Statistical Section
This part of the City of Huntington Beach’s Annual Comprehensive Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City’s overall financial health.

Financial Trends – contains trend information to help the reader understand how the City’s financial performance has changed over time.

Revenue Capacity – contains information to help the reader assess the City’s most significant local revenue source, the property tax.

Debt Capacity – presents information to assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information – offers information to help the reader understand the environment within which the City’s financial activities take place.

Operating Information – contains service and infrastructure data to help the reader understand how the City’s financial report relates to the services the City provides and the activities it performs.

Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 147 Statistical Section

NET POSITION BY COMPONENT - LAST TEN FISCAL YEARS
(In Thousands)

Fiscal Year Ended
June 30,
2025 2024 2023 2022 2021
Governmental Activities
Net investment in capital assets $ 771,109 $ 751,578 $ 727,051 $ 712,289 $ 699,204 Restricted 144,388 127,535 82,564 68,460 65,755 Unrestricted (190,408) (179,145) (173,034) (223,438) (275,159) Total Governmental Activities Net Position $ 725,089 $ 699,968 $ 636,581 $ 557,311 $ 489,800 Business-Type Activities
Net investment in capital assets $ 144,753 $ 141,232 $ 141,581 $ 143,998 $ 142,469 Restricted 27,510 24,394 21,213 19,309 20,332
Unrestricted 29,449 31,190 36,684 34,120 39,129 Total Business-Type Activities Net Position $ 201,712 $ 196,816 $ 199,478 $ 197,427 $ 201,930 Primary Government
Net investment in capital assets $ 915,862 $ 892,810 $ 868,632 $ 856,287 $ 841,673 Restricted 171,898 151,929 103,777 87,769 86,087 Unrestricted (160,959) (147, 955) (136,350) (189,318) (236,030) Total Primary Government Net Position $ 926,801 $ 896,784 $ 836,059 $ 754,738 $ 691,730

CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)

Fiscal Year Ended
June 30,
2025 2024 2023 2022 2021
Expenses:

Governmental Activities:

City Council $ 469 $ 441 $ 429 $ 382 $ 423
City Manager 5,733 7,699 5,780 5,412 11,163
City Treasurer 2,368 2,124 396 259 340
City Attorney 4,093 4,156 3,248 2,183 3,140
City Clerk 1,750 1,674 1,370 1,060 1,147
Finance 6,491 6,499 6,211 5,581 6,828
Human Resources**** 2,585 2,786 - - -
Community Development* 21,124 19,124 20,550 11,634 19,716 Fire 78,393 78,253 71,737 52,808 65,960
Information Services 9,997 8,682 8,565 6,469 6,230 Police 115,058 107,440 89,430 73,964 102,415
Community Services 16,377 15,176 13,389 11,517 11,365 Library Services 7,268 7,409 7,225 5,212 6,181 Public Works 58,987 51,560 49,151 42,598 40,270 Non-Departmental*** - - - - -
Interest on Long-Term Debt 9,469 9,710 9,587 9,548 2,706 Total Governmental Activities 340,162 322,733 287,068 228,627 277,884 Business-Type Activities
Water Utility 52,846 52,397 47, 974 44,182 46,054 Sewer Service 12,473 12,213 11,422 10,390 9,284 Refuse Collection 16,009 15,543 14,935 13,738 12,936 Hazmat Service 174 194 103 236 241
Total Business-Type Activities 81,502 80,347 74,434 68,546 68,515 Total Business and Government Type Activities $ 421,664 $ 403,080 $ 361,502 $ 297,173 $ 346,399 * Planning and Building departments were combined in Fiscal Year ended September 30, 2011. The combined department was later renamed to Community Development in Fiscal Year ended September 30, 2016. ** The 2018 period reflects nine months of activity only as the fiscal year change resulted in reporting period from October 1, 2017 to June 30, 2018.

City of Huntington Beach Annual Comprehensive Financial Report 2025 148Statistical Section

NET POSITION BY COMPONENT - LAST TEN FISCAL YEARS
(In Thousands)
(continued)
Fiscal Year Ended
June 30, September 30,
2020 2019 2018** 2017 2016
Governmental Activities
Net investment in capital assets $ 673,498 $ 664,281 $ 650,466 $ 646,336 $ 624,180 Restricted 79,926 66,089 58,537 41,888 41,555 Unrestricted (274,523) (251,022) (254,528) (262,874) (222,863) Total Governmental Activities Net Position $ 478,901 $ 479,348 $ 454,475 $ 425,350 $ 442,872 Business-Type Activities
Net investment in capital assets $ 142,785 $ 145,696 $ 143,954 $ 140,478 $ 142,566 Restricted 22,248 21,153 25,886 30,444 32,049 Unrestricted 38,482 36,747 27,492 22,228 21,997 Total Business-Type Activities Net Position $ 203,515 $ 203,596 $ 197,332 $ 193,150 $ 196,612 Primary Government
Net investment in capital assets $ 816,283 $ 809,977 $ 794,420 $ 786,814 $ 766,746 Restricted 102,174 87,242 84,423 72,332 73,604 Unrestricted (236,041) (214,275) (227,036) (240,646) (200,866) Total Primary Government Net Position $ 682,416 $ 682,944 $ 651,807 $ 618,500 $ 639,484

CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)
(continued)
Fiscal Year Ended
June 30, September 30,
2020 2019 2018** 2017 2016
Expenses:

Governmental Activities:

City Council $ 405 $ 360 $ 218 $ 347 $ 321
City Manager 3,328 4,501 2,063 4,691 3,849
City Treasurer 317 246 101 216 208
City Attorney 3,136 2,886 1,536 3,307 2,598
City Clerk 949 976 475 889 806
Finance 6,661 6,245 3,455 6,201 5,765
Human Resources**** - 6,261 4,760 5,693 6,814
Community Development* 15,722 6,144 4,301 7,576 7,208 Fire 62,840 56,494 26,688 52,941 47, 965
Information Services 8,643 7,530 4,375 7,047 6,852 Police 97,204 87, 355 42,109 84,786 74,943
Community Services 12,539 13,369 6,768 15,558 9,935 Library Services 5,776 5,206 2,890 5,064 4,611 Public Works 45,834 40,803 23,898 35,373 31,791 Non-Departmental*** - - 18,164 29,368 35,240
Interest on Long-Term Debt 1,686 1,823 1,467 2,063 2,119 Total Governmental Activities 265,040 240,199 143,268 261,120 241,025 Business-Type Activities
Water Utility 44,463 43,405 28,414 45,940 41,643 Sewer Service 9,828 9,442 6,127 9,351 8,729
Refuse Collection 12,609 12,051 8,916 10,821 11,277 Hazmat Service 235 234 117 224 244
Total Business-Type Activities 67,135 65,132 43,574 66,336 61,893 Total Business and Government Type Activities $ 332,175 $ 305,331 $ 186,842 $ 327,456 $ 302,918 *** Beginning with Fiscal Year ended June 30, 2019, non-departmental expenditures are no longer presented separately but are included as part of functional expenditures.
**** Human Resources was combined with the City Manager’s Office in Fiscal Year ended June 30, 2020. Human Resources was seperated in Fiscal Year ended June 30, 2024.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 149 Statistical Section

CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)

Fiscal Year Ended
June 30,
2025 2024 2023 2022 2021
Program Revenues:

Governmental Activities:

Charges for Services
City Council $ 157 $ 175 $ 167 $ 162 $ 162
City Manager 3,970 4,057 4,976 4,131 4,208
City Treasurer 134 161 153 149 149
City Attorney 7 6 5 5 6
City Clerk 221 508 299 269 30
Finance 3,499 3,280 3,125 3,036 3,055
Human Resources**** 2,098 7,670 - - -
Community Development* 11,530 11,102 18,817 10,953 8,353 Fire 24,454 20,228 14,166 13,401 8,877
Information Services 681 654 623 604 610
Police 7,779 5,558 6,139 6,687 6,477
Community Services 27,894 24,713 22,545 21,117 15,558 Library Services 251 229 388 302 153
Public Works 7,693 8,570 11,301 7,235 6,045
Non-Departmental*** - - - - -
Total Charges for Services 90,368 86,911 82,704 68,051 53,683 Operating Grants 15,139 11,678 43,005 9,301 6,013 Capital Grants 17,541 17,266 11,202 8,537 10,192 Total Governmental Activities Program Revenue 123,048 115,855 136,911 85,889 69,888 Business-Type Activities:

Water Utility 51,153 45,739 48,934 43,590 42,523 Sewer Service 13,366 11,798 10,982 10,791 10,828 Refuse Collection 16,042 15,637 14,899 13,675 13,014 Hazmat Service 339 302 276 276 266
Total Business-Type Activities Program Revenues 80,900 73,476 75,091 68,332 66,631 Total Primary Government Program Revenue 203,948 189,331 212,002 154,221 136,519 Net (Expense) Revenue:

Governmental Activities (217,114) (206,878) (150,157) (142,738) (207, 996) Business-Type Activities (602) (6,871) 657 (214) (1,884) Total Net (Expense) Revenue (217,716) (213,749) (149,500) (142,952) (209,880) General Revenue and Other Changes in Net Position
Governmental Activities:

Property Taxes 118,237 114,630 109,467 102,539 99,958 Sales Taxes 52,384 56,003 57,164 57,652 51,162 Utility Taxes 22,706 23,283 22,558 19,528 18,374 Other Taxes 25,758 27,024 32,418 26,134 17,293 Use of Money and Property 22,256 12,361 5,153 (1,895) 4,399 From Other Agencies 1,952 5,883 3,225 4,631 22,000 Gain on Sale of Property - - (520) 1,699 -
Gain from Elimination of Allowances - 31,136 - - - Other - - - - -
Transfers (57) (55) (38) (39) (38)
Total Governmental Activities General Revenues 243,236 270,265 229,427 210,249 213,148 Business-Type Activities:

Use of Money and Property 5,489 4,154 1,356 (4,328) 261 Transfers 57 55 38 39 38
Total Business-Type Activities General Revenues 5,546 4,209 1,394 (4,289) 299 Total General Revenues and Transfers 248,782 274,474 230,821 205,960 213,447 Changes in Net Position - Governmental Activities 26,122 63,387 79,270 67,511 5,152 Changes in Net Position - Business-Type Activities 4,944 (2,662) 2,051 (4,503) (1,585) Total Changes in Net Position 31,066 60,725 81,321 63,008 3,567 Net Position - Beginning of Year 896,784 836,059 754,738 691,730 682,416 Prior Period Adjustment - Governmental Activities (1,001) - - - 5,747 Prior Period Adjustment - Business-Type Activities (48) - - - - Net Position - Beginning of Year as restated 895,735 836,059 754,738 691,730 688,163 Net Position - End of Year $ 926,801 $ 896,784 $ 836,059 $ 754,738 $ 691,730

* Planning and Building departments were combined in the Fiscal Year ended September 30, 2011. The combined department was later renamed to Community Development in Fiscal Year ended September 30, 2016. ** The 2018 period reflects nine months of activity only as the fiscal year change resulted in reporting period from October 1, 2017 to June 30, 2018 City of Huntington Beach Annual Comprehensive Financial Report 2025 150Statistical Section

CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)
(continued)
Fiscal Year Ended
June 30, September 30,
2020 2019 2018** 2017 2016
Program Revenues:

Governmental Activities:

Charges for Services
City Council $ 177 $ 149 $ 91 $ 108 $ 116
City Manager 5,315 3,300 2,374 3,515 3,029
City Treasurer 163 135 81 100 101
City Attorney 7 7 4 5 4
City Clerk 220 327 229 257 201
Finance 3,302 2,899 1,746 2,047 2,277
Human Resources**** - 751 373 654 513
Community Development* 10,037 7,459 5,448 7,448 9,252 Fire 10,122 9,831 9,104 10,296 9,894
Information Services 636 628 381 501 521
Police 5,329 6,044 4,703 4,968 5,958
Community Services 17,631 23,530 19,245 21,693 18,853 Library Services 266 308 237 476 408
Public Works 6,614 6,368 4,392 5,392 5,733
Non-Departmental*** - - 916 1,116 1,290
Total Charges for Services 59,819 61,736 49,324 58,576 58,150 Operating Grants 8,141 6,644 3,976 7, 329 4,723 Capital Grants 14,483 8,361 6,055 3,408 5,939 Total Governmental Activities Program Revenue 82,443 76,741 59,355 69,313 68,812 Business-Type Activities:

Water Utility 40,518 43,958 29,530 39,938 35,765 Sewer Service 10,900 11,868 8,362 10,854 11,280 Refuse Collection 12,573 12,022 8,820 11,282 11,215 Hazmat Service 279 276 25 287 235
Total Business-Type Activities Program Revenues 64,270 68,124 46,737 62,361 58,495 Total Primary Government Program Revenue 146,713 144,865 106,092 131,674 127,307 Net (Expense) Revenue:

Governmental Activities (182,597) (163,458) (83,913) (191,807) (172,213) Business-Type Activities (2,865) 2,992 3,163 (3,975) (3,398) Total Net (Expense) Revenue (185,462) (160,466) (80,750) (195,782) (175,611) General Revenue and Other Changes in Net Position
Governmental Activities:

Property Taxes 94,263 89,124 61,185 82,925 87,128 Sales Taxes 44,616 47,437 33,844 43,551 34,289 Utility Taxes 18,149 18,788 14,014 19,303 19,482 Other Taxes 18,635 20,227 14,883 17, 991 17, 313 Use of Money and Property 3,208 8,746 2,158 3,370 3,618 From Other Agencies 3,317 4,046 2,263 3,896 4,397 Gain on Sale of Property - - - - -
Gain from Elimination of Allowances - - - - - Other - - 2,811 2,438 5,693
Transfers (38) (37) (332) (51) (38)
Total Governmental Activities General Revenues 182,150 188,331 130,826 173,423 171,882 Business-Type Activities:

Use of Money and Property 2,746 3,235 279 462 939 Transfers 38 37 332 51 38
Total Business-Type Activities General Revenues 2,784 3,272 611 513 977 Total General Revenues and Transfers 184,934 191,603 131,437 173,936 172,859 Changes in Net Position - Governmental Activities (447) 24,873 46,913 (18,384) (331) Changes in Net Position - Business-Type Activities (81) 6,264 3,774 (3,462) (2,421) Total Changes in Net Position (528) 31,137 50,687 (21,846) (2,752) Net Position - Beginning of Year 682,944 651,807 618,500 639,484 642,236 Prior Period Adjustment - Governmental Activities - - (17,788) 862 - Prior Period Adjustment - Business-Type Activities - - 408 - - Net Position - Beginning of Year as restated 682,944 651,807 601,120 640,346 642,236 Net Position - End of Year $ 682,416 $ 682,944 $ 651,807 $ 618,500 $ 639,484

*** Beginning with the Fiscal Year ended June 30, 2019, non-departmental expenditures are no longer presented separately but are included as part of functional expenditures.
**** Human Resources was combined with the City Manager’s Office in Fiscal Year ended June 30, 2020. Human Resources was seperated in Fiscal Year ended June 30, 2024.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 151 Statistical Section

FUND BALANCES - GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS (In Thousands)
(Modified Accrual Basis of Accounting)
Fiscal Year Ended
June 30,
2025 2024 2023 2022 2021
General Fund:

Nonspendable $ 44 $ 148 $ 51 $ 82 $ 115
Restricted 27,4 4 8 21,670 19,578 14,623 13,561 Committed 52,954 52,023 51,230 26,665 25,565
Assigned 66,139 58,478 55,678 61,454 55,368
Total General Fund $ 146,585 $ 132,319 $ 126,537 $ 102,824 $ 94,609 Other Governmental Funds:

Nonspendable $ 5,229 $ - $ - $ - $ 105
Restricted 112,210 105,569 87, 866 75,774 70,161 Committed 44,859 43,557 45,820 28,559 26,857
Assigned 5,842 6,762 6,197 3,021 3,280
Unassigned - - - (4,311) -
Total Other Governmental Funds $ 168,140 $ 155,888 $ 139,883 $ 103,043 $ 100,403

Fiscal Year Ended
June 30, September 30,
2020 2019 2018 2017 2016
General Fund:

Nonspendable $ 120 $ 23 $ 41 $ - $ -
Restricted 9,320 8,154 6,384 2,671 2,637
Committed 25,010 25,011 25,011 25,011 25,011
Assigned 45,638 45,825 34,464 33,498 35,199
Unassigned - - 2,734 - -
Total General Fund $ 80,088 $ 79,013 $ 68,634 $ 61,180 $ 62,847 Other Governmental Funds:

Nonspendable $ 50 $ 64 $ 726 $ - $ -
Restricted 71,671 59,213 52,742 40,588 40,293 Committed 21,735 20,308 20,800 17,686 21,368
Assigned 3,527 3,614 2,701 826 838
Total Other Governmental Funds $ 96,983 $ 83,199 $ 76,969 $ 59,100 $ 62,499 City of Huntington Beach Annual Comprehensive Financial Report 2025 152Statistical Section

THE PAGE INTENTIONALLY LEFT BLANK

Annual Comprehensive Financial Report 2025 City of Huntington Beach 153

CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting)
(In Thousands)
Fiscal Year Ended
June 30,
2025 2024 2023 2022 2021
REVENUES:

Property Taxes $ 118,237 $ 114,630 $ 109,467 $ 102,539 $ 99,958 Sales Taxes 52,384 56,003 57,164 57,652 51,162 Utility Taxes 22,706 23,283 22,558 19,528 18,374 Other Taxes 25,758 27,465 40,738 33,720 25,745 Licenses and Permits 10,743 10,593 15,688 9,596 8,213 Fines and Forfeitures 6,040 3,666 3,945 5,144 4,619 From Use of Money and Property 43,014 37,769 22,726 14,365 19,163 From Other Agencies 50,666 38,922 47,426 13,060 29,836 Charges for Current Service/Other Revenue 61,574 59,496 66,363 52,809 27,428 TOTAL REVENUES 391,122 371,827 386,075 308,413 284,498

EXPENDITURES
Current:

City Council 492 464 453 426 1,043
City Manager 5,162 7,117 6,501 5,265 15,976
City Treasurer 2,425 2,059 417 326 837
City Attorney 4,098 3,994 3,404 2,995 7,714
City Clerk 1,796 1,653 1,442 1,295 2,810
Finance 6,266 5,999 7,420 7,259 16,173
Human Resources***** 2,578 2,636 - - -
Community Development** 21,687 19,412 21,569 14,412 39,212 Fire 77,857 76,247 72,499 62,880 149,726
Information Systems 10,007 8,916 8,563 7,871 19,095 Police 107,065 103,468 97,000 93,976 232,438
Community Services 14,956 14,179 16,610 18,455 25,064 Library Services 7,188 7,235 7,244 6,300 14,099 Public Works 73,690 69,169 62,161 50,158 88,007 Non-Departmental**** - - - - -
Capital Outlay*** - - - - -
Debt Service:

Principal 19,780 20,375 18,799 15,918 3,983
Interest 9,500 9,728 9,542 11,299 937
TOTAL EXPENDITURES 364,547 352,651 333,624 298,835 617,114

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES 26,575 19,176 52,451 9,578 (332,616) OTHER FINANCING SOURCES (USES):

Transfers In 22,550 28,764 65,369 21,642 13,058 Issuance of Long-Term Debt - - - - 372,010
Issuance Premium - - - - 1,743
Issuance Discount - - - - (649)
Payments to Escrow - - - - (28,256)
Lease (as Lessee) - - 398 448 -
Issuance of Finance Purchase Agreement - - 7,742 868 - Subscription Based IT Arrangement - 2,666 - - - Transfers Out (22,607) (28,819) (65,407) (21,681) (13,096) TOTAL OTHER FINANCING SOURCES (USES) (57) 2,611 8,102 1,277 344,810 INCREASE (DECREASE) IN FUND BALANCES $ 26,518 $ 21,787 $ 60,553 $ 10,855 $ 12,194

DEBT SERVICE AS A PERCENTAGE OF NON-CAPITAL
EXPENDITURES 9.1% 9.7% 9.7% 10.1% 0.9%
* The 2017/18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from October 1, 2017 to June 30, 2018.
** Planning and Building departments were combined in Fiscal Year ended September 30, 2011. The department was later renamed to Community Development in Fiscal Year ended September 30, 2016.
*** Beginning with the Fiscal Year ended September 30, 2017, capital outlay expenditures are no longer presented separately but are included as part of functional expenditures. However, capital outlay expenditures are excluded in the calculation of debt service as a percentage of non-capital expenditures.

City of Huntington Beach Annual Comprehensive Financial Report 2025 154Statistical Section

CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting)
(In Thousands)
(continued)
Fiscal Year Ended
June 30, September 30,
2020 2019 2018* 2017 2016
REVENUES:

Property Taxes $ 94,263 $ 89,367 $ 80,614 $ 80,826 $ 86,382 Sales Taxes 44,616 47,437 33,844 43,551 39,305 Utility Taxes 18,149 18,788 14,014 19,303 19,482 Other Taxes 24,578 27,196 18,409 17, 991 17, 313 Licenses and Permits 11,266 8,574 6,293 8,812 9,820 Fines and Forfeitures 3,403 4,300 3,048 3,995 5,144 From Use of Money and Property 27,863 23,276 11,600 17,210 18,055 From Other Agencies 11,309 13,072 10,384 15,293 13,712 Charges for Current Service/Other Revenue 34,772 33,787 30,216 32,351 32,506 TOTAL REVENUES 270,219 265,797 208,422 239,332 241,719

EXPENDITURES
Current:

City Council 394 369 279 333 318
City Manager 4,342 6,598 3,143 4,116 3,092
City Treasurer 297 248 134 201 204
City Attorney 2,898 2,874 2,037 3,052 2,539
City Clerk 886 981 602 830 790
Finance 6,200 6,484 4,376 5,763 5,659
Human Resources***** - 6,362 5,323 5,535 6,776 Community Development** 14,692 8,138 5,554 6,963 7,062 Fire 56,477 54,431 36,347 46,831 46,200
Information Systems 8,473 8,342 5,385 6,603 6,742 Police 87,682 83,546 57, 916 75,015 72,612
Community Services 14,429 11,720 7, 958 14,124 10,768 Library Services 5,199 4,944 3,436 4,422 4,247 Public Works 47,655 46,878 30,357 38,635 23,659 Non-Departmental**** - - 22,432 28,396 24,670 Capital Outlay*** - - - - 27,269
Debt Service:

Principal 5,122 5,346 311 5,091 5,933
Interest 1,748 1,890 965 2,066 2,138
TOTAL EXPENDITURES 256,494 249,151 186,555 247,976 250,678

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES 13,725 16,646 21,867 (8,644) (8,959) OTHER FINANCING SOURCES (USES):

Transfers In 10,009 11,190 13,261 6,692 9,034 Issuance of Long-Term Debt 1,172 - - 2,767 10,197 Issuance Premium - - - - -
Issuance Discount - - - - -
Payments to Escrow - - - - -
Lease (as Lessee) - - - - -
Issuance of Finance Purchase Agreement - - - - - Subscription Based IT Arrangement - - - - -
Transfers Out (10,047) (11,227) (13,593) (6,743) (17,053) TOTAL OTHER FINANCING SOURCES (USES) 1,134 (37) (332) 2,716 2,178 INCREASE (DECREASE) IN FUND BALANCES $ 14,859 $ 16,609 $ 21,535 $ (5,928) $ (6,781)

DEBT SERVICE AS A PERCENTAGE OF NON-CAPITAL
EXPENDITURES 3.0% 3.3% 0.7% 3.2% 3.6%
**** Beginning with the Fiscal Year ended June 30, 2019, non-departmental expenditures are no longer presented separately but are included as part of functional expenditures.
***** Human Resources was combined with the City Manager’s Office in Fiscal Year ended June 30, 2020. Human Resources was seperated in Fiscal Year ended June 30, 2024.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 155 Statistical Section

ASSESSED AND ACTUAL VALUATION

OF ALL TAXABLE PROPERTY (EXCLUDING REDEVELOPMENT AGENCY)

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year
Common
Property Public Utilities Total Secured Unsecured
Total Assessed
Valuation
Total Direct
Tax Rate
2015-2016 31,193,211 66,802 31,260,013 1,132,728 32,392,741 0.17082 2016-2017 32,540,317 55,802 32,596,119 1,067,760 33,663,879 0.17082 2017-2018 34,199,035 41,102 34,240,137 1,100,077 35,340,214 0.17082 2018-2019 35,941,648 61,202 36,002,850 1,117, 879 37,120,729 0.17082 2019-2020 37,741,095 518 37,741,613 1,145,838 38,887 ,451 0.17082 2020-2021 39,449,688 518 39,450,206 1,111,018 40,561,224 0.17082 2021-2022 40,789,946 518 40,790,464 1,041,429 41,831,893 0.17082 2022-2023 43,432,681 948 43,433,629 1,232,123 44,665,752 0.17082 2023-2024 45,689,554 948 45,690,502 1,174,043 46,864,545 0.17082 2024-2025 47, 920,669 948 47,921,617 1,178,888 49,100,505 0.17082 Source: County of Orange Auditor Controller

PROPERTY TAX RATES

ALL DIRECT AND

OVERLAPPING GOVERNMENTS
TAX RATE 04-001

LARGEST AREA IN CITY

LAST TEN FISCAL YEARS
Direct Overlapping Total
Direct and
OverlappingFiscal Year
City Basic Rate
(1), (2) City Other
School
Districts
Metro Water
District Others
2015-2016 0.15582 0.01500 0.07615 0.00350 0.84418 1.09465 2016-2017 0.15582 0.01500 0.07786 0.00350 0.83599 1.08817 2017-2018 0.15582 0.01500 0.09970 0.00350 0.84418 1.11820 2018-2019 0.15582 0.01500 0.09246 0.00350 0.84418 1.11096 2019-2020 0.15582 0.01500 0.08788 0.00350 0.84418 1.10638 2020-2021 0.15582 0.01500 0.07983 0.00350 0.84418 1.09833 2021-2022 0.15582 0.01500 0.07541 0.00350 0.84418 1.09391 2022-2023 0.15582 0.01500 0.07449 0.00350 0.84418 1.09299 2023-2024 0.15582 0.01500 0.08163 0.00350 0.84418 1.10013 2024-2025 0.15582 0.01500 0.08056 0.00700 0.84418 1.10256 Note: Rates are per $100 of assessed valuation
Source: County of Orange Auditor Controller
(1) Excludes rates associated with Mello-Roos Districts (2) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This 1% is shared by all taxing agencies for which the subject property resides. In 1986, the State Constitution was amended to allow rates over the 1% base rate for voter approved general obligation debt. Valuations of real property are frozen at the value of the property in 1975, with an allowable adjustment up to 2% per year for inflation. However, property is assessed to its current value when a change of ownership occurs. New construction, including tenant improvements, is assessed at its current value.

City of Huntington Beach Annual Comprehensive Financial Report 2025 156Statistical Section

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(In Thousands)

Collected within the
Fiscal Year of the Levy Total Collections
Fiscal Year Total Levy Amount
Percentage
of Levy
Delinquent
Tax
Collections Amount
Percentage
of Levy
Delinquent
Taxes
Receivable
Delinquency
Percent
Secured Taxes
2015-2016 55,886 53,916 96.5% 546 54,462 97.5% 1,263 2.3% 2016-2017 58,258 56,481 96.9% 525 57,0 06 97. 9% 1,253 2.2% 2017-2018 62,418 59,731 95.7% 474 60,205 96.5% 2,073 3.3% 2018-2019 63,934 62,222 97. 3% 622 62,844 98.3% 920 1.4% 2019-2020 66,411 64,767 97.5% 496 65,263 98.3% 1,092 1.6% 2020-2021 69,341 67, 8 87 97. 9% 626 68,513 98.8% 926 1.3% 2021-2022 72,014 69,871 97.0 % 714 70,585 98.0% 1,510 2.1% 2022-2023 78,388 76,256 97. 3% 547 76,803 98.0% 1,501 1.9% 2023-2024 80,457 78,570 97.7% 658 79,228 98.5% 1,205 1.5% 2024-2025 83,807 81,524 97. 3% 731 82,255 98.1% 1,465 1.7%

Unsecured Taxes
2015-2016 1,925 1,740 90.4% 35 1,775 92.2% 39 2.0% 2016-2017 1,899 1,692 89.1% 23 1,715 90.3% 34 1.8% 2017-2018 1,964 1,829 93.1% 28 1,857 94.6% 26 1.3% 2018-2019 1,964 1,804 91.9% 20 1,824 92.9% 29 1.5% 2019-2020 2,038 1,906 93.5% 15 1,921 94.3% 43 2.1% 2020-2021 2,143 1,955 91.2% 26 1,981 92.4% 82 3.8% 2021-2022 2,267 2,059 90.8% 46 2,105 92.9% 90 4.0% 2022-2023 2,233 2,102 94.1% 42 2,144 96.0% 59 2.6% 2023-2024 2,586 2,240 86.6% 33 2,273 87. 9% 174 6.7% 2024-2025 2,790 2,528 90.6% 32 2,560 91.8% 226 8.1%

Community Facilities Districts
2015-2016 4,121 4,106 99.6% 9 4,115 99.9% 2 -% 2016-2017 4,098 4,085 99.7% 2 4,087 99.7% - -% 2017-2018 4,141 4,128 99.7% 5 4,133 99.8% - -% 2018-2019 4,099 4,086 99.7% 3 4,089 99.8% 1 -% 2019-2020 4,053 4,027 99.4% 2 4,029 99.4% 14 0.3% 2020-2021 3,949 3,937 99.7% - 3,937 99.7% - -% 2021-2022 3,987 3,975 99.7% - 3,975 99.7% - -% 2022-2023 4,006 3,962 98.9% - 3,962 98.9% 31 0.8% 2023-2024 4,207 4,194 99.7% 35 4,229 100.5% - -% 2024-2025 4,738 4,590 96.9% 3 4,593 96.9% 135 2.8% Source: County of Orange Auditor Controller’s Office
Note:

The levy and tax year is for July 1st through June 30th and does not include the Redevelopment Agency. 2015-2016 to current fiscal year includes the following:

Secured: includes supplemental, st ltg reorg, nuisance abatement, weed abatement, retirement override, tax admin charges, and community interest. Does not include Community Facilities District CFDs.

Unsecured: includes aircraft unsecured tax. Does not include CFDs.

Miscellaneous: excluded from all tables.

Delinquency Amount: reflects the “unpaid” amounts as stated in the OC Auditor-Controller website.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 157 Statistical Section

TOP TEN PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO
2024-2025

Taxable
Assessed Value
(In Thousands)
Percent of Total
TAV
AES Huntington Beach Energy, LLC $ 744,667 1.52%
Bella Terra Associates LLC 417,770 0.85%
Huntington Gateway Industrial LLC 309,320 0.63%
DCO Pacific City 237, 841 0.48%
Catalyst Housing Group 212,788 0.43%
PCH Beach Resort LLC 210,402 0.43%
Mc Donnell Douglas West Federal Credit Union 158,105 0.32% Socal Holding LLC 157,785 0.32%
The Waterfront Hotel LLC 155,532 0.32%
Monogram Residential Huntington Beach 147,580 0.30% Total Top Ten 2,751,790 5.60%
All Other Property Taxpayers 46,348,715 94.40%
City Total $ 49,100,505 100.00%

2015-2016

Taxable
Assessed Value
(In Thousands)
Percent of Total
TAV
OXY USA Inc $ 509,827 2.07%
McDonnell Douglas West Federal Credit Union 410,913 1.10% Bella Terra Associates LLC 237,726 0.76%
Mayer Financial LP 194,790 0.62%
United Dominion Realty 123,773 0.47%
Capref Strand LLC 102,955 0.34%
Bella Terra Villas LLC 100,141 0.32%
PR One Pacific Plaza LLC 95,536 0.29%
SARM Five Points Plaza LLC 94,331 0.29%
Pacific Sands LLC 90,918 0.24%
Total Top Ten 1,960,910 6.50%
All Other Property Taxpayers 30,431,831 93.50%
City Total $ 32,392,741 100.00%
Source: County of Orange Auditor Controller’s Office
Note: Information provided for the period from July 1st through June 30th.

City of Huntington Beach Annual Comprehensive Financial Report 2025 158Statistical Section

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Annual Comprehensive Financial Report 2025 City of Huntington Beach 159

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year Ended
June 30,
2025 2024 2023 2022 2021
Long-Term Indebtedness
Governmental Activities:

Judgement Obligation Bonds $ - $ - $ - $ - $ -
Public Financing Authority:
2010(a) Lease Revenue Bonds - - - - -
2011(a) Lease Revenue Bonds - - - - -
2014(a) Lease Revenue Bonds 9,060 9,810 10,530 11,215 11,880 2020(a) Lease Revenue Bonds 4,835 4,835 4,835 4,835 4,835 2020(b) Lease Revenue Bonds 6,720 8,265 9,795 11,315 12,830 Total Public Financing Authority 20,615 22,910 25,160 27,365 29,545 Other Long-Term Obligations:

Finance Purchase Agreement 11,817 14,290 17, 38 8 11,714 12,753 Leases Payable 85 240 456 247 -
Subscriptions Payable 2,320 3,800 2,600 - -
Section 108 Loan City - - - - -
LED Lighting Phase I - 65 191 314 432
CEC 1,256 1,528 1,797 2,063 2,457
I-Bank 656 973 1,283 1,586 1,882
Pension Obligation Bonds 292,555 305,322 318,005 330,642 341,501 Total Other Long-Term Obligations 308,689 326,218 341,720 346,566 359,025 Total Long-Term Obligations -
Governmental Activities 329,304 349,128 366,880 373,931 388,570 Long-Term Obligations -
Business-Type Activities:

Pension Obligation Bonds 18,692 19,588 20,480 21,368 22,144 Total Long-Term Obligations -
Business-Type Activities 18,692 19,588 20,480 21,368 22,144 Total Long Term Obligations -
Governmental Activities and
Business-Type Activities $ 347,996 $ 368,716 $ 387,360 $ 395,299 $ 410,714

2025 2024 2023 2022 2021
Population 195,332 195,332 198,373 197,437 198,039 Debt Per Capita $ 1,782 $ 1,888 $ 1,953 $ 2,002 $ 2,074 Total Personal Income (In
Thousands)* $ 11, 847,667 $ 11, 847,667 $ 10,841,878 $ 9,995,248 $ 9,659,154 Per Capita Personal Income* $ 60,654 $ 60,654 $ 54,654 $ 50,625 $ 48,774 Unemployment Rate** 3.90% 3.90% 3.60% 2.80% 4.70% Total Employment** 101,700 101,700 103,900 104,300 100,700 * Source: Claritas, Inc.
** Source: State of California Employment Development Department *** The 2017/18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from October 1, 2017 to June 30, 2018.

City of Huntington Beach Annual Comprehensive Financial Report 2025 160Statistical Section

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year Ended
June 30, September 30,
2020 2019 2018*** 2017 2016
Long-Term Indebtedness
Governmental Activities:

Judgement Obligation Bonds $ - $ - $ - $ - $ 659
Public Financing Authority:
2010(a) Lease Revenue Bonds 7,410 8,235 9,030 9,030 9,795 2011(a) Lease Revenue Bonds 15,725 17,770 19,735 19,735 21,650 2014(a) Lease Revenue Bonds 12,530 13,145 13,740 13,740 14,315 2020(a) Lease Revenue Bonds - - - - -
2020(b) Lease Revenue Bonds - - - - -
Total Public Financing Authority 35,665 39,150 42,505 42,505 45,760 Other Long-Term Obligations:

Finance Purchase Agreement 5,241 5,083 6,079 6,286 4,130 Leases Payable - - - - -
Subscriptions Payable - - - - -
Section 108 Loan City - - 430 430 625
LED Lighting Phase I 546 656 762 866 966
CEC 2,588 2,818 3,000 3,000 3,000
I-Bank 2,171 2,454 2,730 2,730 3,000
Pension Obligation Bonds - - - - -
Total Other Long-Term Obligations 10,546 11,011 13,001 13,312 11,721 Total Long-Term Obligations -
Governmental Activities 46,211 50,161 55,506 55,817 58,140 Long-Term Obligations -
Business-Type Activities:

Pension Obligation Bonds - - - - -
Total Long-Term Obligations -
Business-Type Activities - - - - -
Total Long Term Obligations -
Governmental Activities and
Business-Type Activities $ 46,211 $ 50,161 $ 55,506 $ 55,817 $ 58,140

2020 2019 2018*** 2017 2016
Population 200,748 202,265 201,761 202,413 201,919 Debt Per Capita $ 230 $ 248 $ 275 $ 276 $ 288 Total Personal Income (In Thousands)* $ 9,450,814 $ 9,222,677 $ 8,849,843 $ 8,878,441 $ 8,880,801 Per Capita Personal Income* $ 47,078 $ 45,597 $ 43,863 $ 43,863 $ 43,982 Unemployment Rate** 8.60% 2.60% 2.70% 2.80% 3.90% Total Employment** 96,200 107,70 0 106,900 103,200 107,20 0 Annual Comprehensive Financial Report 2025 City of Huntington Beach 161 Statistical Section

LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year Assessed Valuation
Debt Limit - 12% of
Assessed Valuation
Debt Applicable to
Limit Legal Debt Margin
2015-2016 $ 32,392,741 $ 3, 8 87,129 $ - $ 3, 8 87,129 2016-2017 33,663,879 4,039,665 - 4,039,665
2017-2018 35,340,214 4,240,826 - 4,240,826
2018-2019 37,120,729 4,454,487 - 4,454,487
2019-2020 38,887 ,451 4,666,494 - 4,666,494
2020-2021 40,561,224 4 , 867, 347 - 4 , 867, 347 2021-2022 41,831,893 5,019,827 - 5,019,827
2022-2023 44,665,752 5,359,890 - 5,359,890
2023-2024 46,864,545 5,623,745 - 5,623,745
2024-2025 49,100,505 5,892,061 - 5,892,061
City of Huntington Beach Annual Comprehensive Financial Report 2025 162Statistical Section

STATEMENT OF DIRECT AND

OVERLAPPING BONDED DEBT
JUNE 30, 2025
202-25 Assessed Valuation: $53,409,090,551
Debt Repaid with Property Taxes (Tax and Assessment Debt):

Overlapping Tax and Assessment Debt
Percent
Applicable*
Debt Applicable
to City
Metropolitan Water District 1.320% 224,731
Coast Community College District 27. 865% 236,459,225 Los Alamitos Unified School District Facilities Improvement District No. 1 1.121% 2,347,500 Huntington Beach Union High School District 72.664% 89,241,419 Fountain Valley School District 26.687% 14,993,529
Huntington Beach School District 99.946% 149,137,672 Ocean View School District 93.632% 138,670,185
Westminster School District 23.935% 36,743,544
City of Huntington Beach Community Facilities Districts (2000-1, 2002-1, 2003-1) 100.000% 21,000,000
Total Overlapping Tax and Assessment Debt $ 688,817,805

Direct and Overlapping General Fund Debt
Orange County General Fund Obligations 6.647% 28,266,802 Orange County Board of Education General Fund Obligations 6.647% 600,826 North Orange County Regional Occupation Program Certificates of Participation 0.082% 5,504
Coast Community College District General Fund Obligations 27. 865% 182,569 Coast Community College District Pension Obligation Bonds 27. 865% 128,628 Huntington Beach Union High School District Certificates of Participation 72.664% 34,434,919 Los Alamitos Unified School District Certificates of Participation 1.007% 297,686 Huntington Beach School District General Fund Obligations 99.946% 11,986,279 Ocean View School District Certificates of Participation 93.632% 10,136,901 Westminster School District General Fund Obligations 23.935% 10,593,101 City of Huntington Beach General Fund Obligations 100.000% 26,460,235 City of Huntington Beach Pension Obligation Bonds 100.000% 292,554,148 Total Direct and Overlapping General Fund Obligation Debt $ 415,647,598

Total Direct Debt $ 319,014,383
Total Overlapping Debt 785,451,020
Combined Total Debt $ 1,104,465,403
(1) Percentage of overlapping agency’s assessed valuation located within boundaries of the City. (1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded leases obligations.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 163 Statistical Section

PRINCIPAL PRIVATE EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
2025 % of total
The Boeing Company 3,200 3.16%
Cambro Manufacturing 650 0.64%
Hyatt Regency Huntington Beach 641 0.63%
Huntington Beach Hospital 527 0.52%
No Ordinary Moments 494 0.49%
Wal-mart 462 0.46%
Waterfront Hilton Beach Resort 450 0.44%
Home Depot USA Inc 436 0.43%
Home and Body Company 418 0.41%
Harbor Distributing LLC 354 0.35%
Total of top 10 7,632 7.53%
All others 93,568 92.47%
Total employment (public and private) 101,200 100.00%

2016 % of total
Boeing 4,391 4.67%
Cambro MFG Co. 1015 0.91%
Ensign United States Drilling 925 0.89%
GWC 900 0.62%
Hyatt Regency Huntington Beach 641 0.53%
C & D Aerospace 555 0.52%
Zodiac Aerospace / Driessen Aircraft 542 0.51%
Huntington Beach Hospital 503 0.50%
Huntington Valley Healthcare 381 0.46%
Quiksilver 350 0.39%
Total of top 10 10,203 10.00%
All others 96,997 90.00%
Total employment (public and private) 107,200 100.00% Source: Finance Department, City of Huntington Beach
City of Huntington Beach Annual Comprehensive Financial Report 2025 164Statistical Section

FULL-TIME ACTUAL AND BUDGETED CITY EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
Actual
General
Government: 2025 2024 2023 2022 2021 2020 2019 2018*** 2017 2016 City Council 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 City Manager 15.00 16.00 14.00 27.00 20.00 18.00 12.50 12.50 11.50 11.50 City Treasurer 9.50 9.50 9.50 9.50 1.50 1.50 2.00 2.00 2.00 1.50 City Attorney 14.00 15.00 11.00 11.00 11.00 11.00 11.00 11.00 12.00 11.00 City Clerk 6.00 6.00 5.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 Finance 28.50 28.50 28.50 28.50 32.50 31.50 33.00 33.00 33.00 32.50 Human
Resources ** 14.00 15.00 13.00 - - - 15.00 15.00 15.00 15.00 Community
Development 62.00 63.00 57.50 57.50 57.50 54.00 44.00 44.00 44.00 43.50 Information
Systems 26.00 26.00 25.00 25.00 26.00 22.00 30.00 30.00 30.00 30.00 Library
Services 29.25 29.25 29.25 29.25 29.25 23.25 28.25 28.25 28.25 28.25 Fire 208.00 202.00 201.00 201.00 201.00 200.00 198.00 198.00 198.00 198.00 Police 350.00 350.00 353.00 353.00 357.00 356.00 365.50 364.50 364.50 364.50 Community
Services 34.00 33.00 33.00 33.00 33.00 37.00 36.00 36.00 44.00 44.00 Public Works 208.50 210.50 211.00 211.00 207.00 199.00 207.00 207.00 199.00 199.00 1,005.75 1,004.75 991.75 991.75 980.75 958.25 987.25 986.25 986.25 983.75 Source: Finance Department, City of Huntington Beach
* Economic Development was combined with Community Development in the year ended June 30, 2020. Previously, it was combined with the City Manager’s Office as of the year ended September 30, 2014. ** Human Resources was combined with City Manager’s Office in the year ended June 30, 2020. Human Resources was seperated in Fiscal Year ended June 30, 2024.
*** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from October 1, 2017 to June 30, 2018.

Annual Comprehensive Financial Report 2025 City of Huntington Beach 165 Statistical Section

OPERATING INDICATORS BY FUNCTION/ACTIVITY

LAST TEN FISCAL YEARS
2025 2024 2023 2022 2021
Function/Program
Finance:

Water Bills Processed 639,312 639,300 638,052 637, 956 637, 920 Active Business Licenses 19,229 18,851 18,787 18,849 19,011 Accounts Receivable Billings Processed 11,904 10,813 10,649 12,437 20,183 City Clerk:

Passports Issued **** 4,186 4,570 6,455 5,721 418 Planning:

Entitlements Processed 133 131 143 154 112 Plan Reviews 646 398 442 606 1,955
Field Inspection Complaints 10,460 12,108 15,247 7,403 11,899 Code Violation Cases 4,296 3,957 5,599 5,051 4,473 Building:

Number of Permits Issued 11,648 11,464 11,536 10,292 9,075 Number of Inspections Completed 41,016 44,613 33,983 31,080 26,710 Value of Construction Permits
(Thousands of Dollars) 226,258 272,596 369,060 237, 945 166,000 Processed Number of Certificate of
Occupancies* 364 592 521 641 655
Completed Plan Reviews 5,247 4,812 6,916 5,701 4,673 Counter Visits 3,883 3,318 6,264 14,289 115 Fire:

Inspections 7, 911 7,209 7,557 7, 311 4,008 Responses 22,319 22,016 21,936 22,076 20,428 Ocean Rescues 4,380 3,554 3,027 4,160 4,116 Estimated Beach Visitors 7 ,788,800 8,984,500 9,101,188 8,345,139 7, 910,293 Police:

Physical Arrests 5,895 5,507 5,358 5,585 5,363 Parking Violations 130,218 75,355 75,408 97,299 95,753 Traffic Violations 4,690 5,221 6,544 8,869 10,920 Community Services:

Park/Open Space Acreage 1,072 1,072 1,072 1,072 1,072 Enrollment in Recreation Classes 42,914 33,312 35,192 34,616 15,511 Public Works:

Water Sold (Acre Feet)** 25,128 23,153 23,358 26,459 27,731 Gallons of Sewage Pumped Per Day** 17 million 17 million 17 million 19 million 19 million Library:

Items in Collection 282,276 280,595 289,299 290,351 291,444 Items Borrowed 856,209 846,059 811,837 796,882 481,523 * Beginning the 2013/14 Fiscal Year, the Building Department no longer processes Certificate of Occupancies. ** Reduction of estimate is the result of the Governor’s executive order to reduce water consumption. *** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from October 1, 2017 to June 30, 2018. **** Passport acceptance was closed to the public from June 2020 through May 2021 due to COVID-19. It was reopened on June 15, 2021.

Source: Various departments of the City of Huntington Beach City of Huntington Beach Annual Comprehensive Financial Report 2025 166Statistical Section

OPERATING INDICATORS BY FUNCTION/ACTIVITY

LAST TEN FISCAL YEARS
(Continued)
2020 2019 2018*** 2017 2016
Function/Program
Finance:

Water Bills Processed 636,708 639,245 476,290 632,997 635,052 Active Business Licenses 20,910 21,414 21,782 22,074 21,420 Accounts Receivable Billings Processed 25,687 30,217 25,000 34,963 30,826 City Clerk:

Passports Issued **** 4,579 7,024 5,757 7,408 5,623 Planning:

Entitlements Processed 162 221 206 216 221 Plan Reviews 1,358 1,542 1,466 1,376 1,653 Field Inspection Complaints 11,610 8,183 7,0 05 8,459 7, 951 Code Violation Cases 3,260 4,786 4,219 3,981 4,324 Building:

Number of Permits Issued 8,855 9,807 7,490 9,728 10,981 Number of Inspections Completed 32,859 36,562 30,501 38,796 39,380 Value of Construction Permits
(Thousands of Dollars) 169,393 135,910 109,462 216,252 283,910 Processed Number of Certificate of
Occupancies* 515 686 523 740 n/a
Completed Plan Reviews 3,469 3,491 2,771 4,172 4,172 Counter Visits 14,922 21,409 16,498 21,731 23,492 Fire:

Inspections 5,965 6,140 3,963 2,758 5,132 Responses 21,068 20,354 14,490 20,555 20,279 Ocean Rescues 2,487 4,953 3,530 3,639 3,977 Estimated Beach Visitors 6,712,125 10,577,290 12,522,640 13,339,518 12,272,030 Police:

Physical Arrests 5,785 5,979 4,614 5,298 5,112 Parking Violations 59,484 79,069 54,500 70,846 90,361 Traffic Violations 12,105 13,314 11,869 19,916 17,639 Community Services:

Park/Open Space Acreage 1,066 1,066 1,065 1,065 1,062 Enrollment in Recreation Classes 28,952 37, 978 27,152 37, 968 34,424 Public Works:

Water Sold (Acre Feet)** 25,966 26,251 19,777 25,944 24,505 Gallons of Sewage Pumped Per Day** 19 million 19 million 19 million 22 million 19 million Library:

Items in Collection 294,849 293,995 292,037 288,599 285,814 Items Borrowed 779,124 942,821 655,626 943,642 921,105 Annual Comprehensive Financial Report 2025 City of Huntington Beach 167 Statistical Section

CAPITAL ASSET STATISTICS BY FUNCTION/ACTIVITY
JUNE 30, 2025
Library Services One Main Library and Four Branches
Fire:

Fire Stations 8
Police:

Stations One Main Station and Three Substations
Community Services:

Acreage of Parks 1,072
Community Centers 6
Public Works:

Centerline Square Miles of Streets Maintained 451
Miles of Beach Maintained 4.7
Miles of Storm Drains Maintained 120
Miles of Sewer Maintained 362
Source: Various departments of the City of Huntington Beach City of Huntington Beach Annual Comprehensive Financial Report 2025 168Statistical Section

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Annual Comprehensive Financial Report 2025 City of Huntington Beach 169
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648