Imperial Beach City Council
December 3, 2025

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 8: Compensated Absences
a. Compensated Absences - Governmental Activities
The City's policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. The following is a summary of changes in compensated absences of the City for the year ended June 30, 2025:

Beginning Net Ending Due Within
Balance Change Balance One Year
Compensated
absences $ 316,525 1,215,329 $ 1,531,854 $ 553,831 $
b. Compensated Absences - Business-Type Activities
The following is a summary of changes in Proprietary Fund compensated absences for the year ended June 30, 2025:

Beginning Ending Due Within
Balance Increases Balance One Year
Compensated
absences $ 30,656 62,044 $ 92,700 $ 27,365 $
Note 9: Long-Term Liabilities
The following is a summary of changes in long-term liabilities of the City for the year ended June 30, 2025:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities
Long-term liabilities:

Direct borrowings
Transnet Commercial Paper 407,162 $ 101,000 $ (334,736) $ 173,426 $ 173,426 $ Financed equipment 414,419 - (96,235) 318,184 100,990 Equipment lease liability 54,895 - (32,790) 22,105 22,105 Subscription lease liability 101,081 78,510 (97,337) 82,254 38,539 Total long-term liabilities 977,557 $ 179,510 $ (561,098) $ 595,969 $ 335,060 $

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 9: Long-Term Liabilities (Continued)
Transnet Commercial Paper
On October 4, 2019, the City entered into a loan agreement with the San Diego County Regional Transportation Commission for a $1.3 million loan for the purposes of financing Imperial Boulevard enhancement project. The proceeds were funded when the City requested reimbursement for valid expenditures related to the project.

The City entered into a loan agreement with the San Diego County Regional Transportation Commission for another $600,000 in May 2020, $148,000 in April 2023, and $196,000 in April of 2024 for State Route 75 Signal Interconnection Project.

The repayment of the debt is the first priority on the use of the City's annual Transnet revenues, which are received from SANDAG. As of June 30, 2025, the City has drawn a total on $1,900,000 on these loan agreements for SR 75 Signal project. The principal remaining on the loan is $173,426 payable through 2026.

The following is a schedule by years, of future debt service payments as of June 30:

Year Ending Direct borrowing
June 30, Principal
2026 173,426 $
Totals $ 173,426
Financed Equipment
On December 9, 2022, the City entered into a purchase option lease agreement with PNC Bank in order to acquire a pierce-arrow XT multipurpose response vehicle from South Coast Fire Equipment, Inc. The annual payments on the long-term financed equipment as of June 30, 2025 were as follows:

Year Ending
June 30, Principal Interest
2026 100,990 $ 15,718 $
2027 105,979 10,729 2028 111,215 5,494 Totals $ 318,184 $ 31,941 Direct borrowing

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 9: Long-Term Liabilities (Continued)
Lease Liability
On July 1, 2021, the City entered into a 60-month lease as Lessee for the use of Printers - Advanced Imaging Care (AIS). An initial lease liability was recorded in the amount of $146,143. As of June 30, 2025, the value of the lease liability is $22,105.

The City is required to make monthly fixed payments of $2,777. The lease has an interest rate of 1.340%. The value of the right to use asset as of June 30, 2025 of $147,365 with accumulated amortization of $126,374 is included with right-to-use equipment lease in capital assets note.

The following is a schedule by years, of future debt service payments as of June 30:

Year Ending Lease liability
June 30, Principal Interest
2026 22,105 $ 111 $
Totals $ 111 22,105 $
Subscription Liability
As of June 30, 2025, the City had 11 active subscriptions. The subscriptions have payments that range from $2,949 to $41,174 and interest rates that range from

0.5770% to 3.2170%. As of June 30, 2025, the total combined value of the subscription liability is $82,254. The combined value of the right to use assets, as of June 30, 2025 of $252,035 with accumulated amortization of $167,707 is included with the right-to-use subscription in the capital assets note. The Sewer fund prepaid a two year subscription, therefore there is no subscription liability as of June 30, 2025 but the right to use assets, as of June 30, 2025 of $23,089 with accumulated amortization of $11,545 is included with the right-to-use subscription in the capital assets note.

Year Ending Subscription liability
June 30, Principal Interest
2026 38,539 $ 2,227 $
2027 36,691 1,237 2028 3,371 214 2029 3,653 111
Totals $ 82,254 $ 3,789

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Ill. OTHER INFORMATION
Note 10: Pensions
General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in 8 rate plans (three miscellaneous and five safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on CalPERS’ website, at www.calpers.ca.gov.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
The Plan’s provisions and benefits in effect at June 30, 2025 are summarized as follows:

Miscellaneous Plan
Classic Second Tier PEPRA
On or after
Prior to March 9, 2012 but prior On or after
Hire date March 9, 2012 to January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 and up 50 and up 52 and up
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5% Required employer contribution rates 16.020% 10.150% 7.870% Safety Plan
Other Safety
Lifeguard Lifeguard Second Tier PEPRA
On or after
Prior to March 9, 2012 but prior On or after
Hire date March 9, 2012 to January 1, 2013 January 1, 2013 Benefit formula 2.0% @ 50 2.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 and up 50 and up 50 and up
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 2.0% to 2.7% 2.0% to 2.7% Required employer contribution rates 21.300% 20.090% 13.760% Fire Fire PEPRA
Prior to On or after
Hire date March 9, 2012 January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 and up 50 and up
Monthly benefits, as a % of eligible compensation 3.00% 2.0% to 2.7% Required employer contribution rates 27.320% 13.760%

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer contributions to the Plan for the fiscal year ended June 30, 2025 were $2,053,190.

Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023 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 as follows.

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City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The collective total pension liability for the June 30, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Actuarial Cost Method
Asset Valuation Method Fair Value of Assets
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) 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.
(1) The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study 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. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
The expected real rates of return by asset class are as follows:

Asset Class
Assumed Asset
Allocation Real Return1 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%) 2
Figures are based on the 2021-22 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

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

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

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

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Investments are reported at fair value.

Proportionate Share of Net Pension Liability
The following table shows the Plan’s proportionate share of the net pension liability over the measurement period.

Plan Total
Pension Liability
Plan Fiduciary
Net Position
Plan Net Pension
Liability
Balance at: 6/30/2023 (VD) 68,309,084 $ 54,771,148 $ 13,537,936 $ Balance at: 6/30/2024 (MD) 71,945,348 58,713,543 13,231,805 Net Changes during 2023-24 3,636,264 $ 3,942,395 $ (306,131) $ Valuation Date (VD), Measurement Date (MD).

Increase (Decrease)
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for the total Plan as of the June 30, 2023 and 2024 measurement dates was as follows:

Proportionate Share - June 30, 2023 0.10852%
Proportionate Share - June 30, 2024 0.10911%
Change - Increase (Decrease) 0.00059%

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability of the total Plan as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Discount Rate Current Discount Rate Discount Rate
- 1% (5.90%) (6.90%) + 1% (7.90%)
Net Pension Liability 22,987,404 $ 13,231,805 $ 5,222,094 $ Amortization of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

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

Net difference between projected
and actual earnings on pension
plan investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all
members that are provided with benefits (active,
inactive and retired) as of the beginning of the
measurement period

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the City’s net pension liability was $13,537,936. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $3,468,372.

As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of assumptions 334,134 $ - $
Difference between expected and
actual experience 1,116,892 (40,613) Difference between projected and actual investment earnings 710,113 - Differences between employer's Contributions and Proportionate
share of contributions - (875,119) Change in employer's proportion 991,370 - Pension contributions subsequent to measurement date 2,053,190 - Total 5,205,699 $ (915,732) $ The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $2,053,190 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ended Deferred Outflows/
June 30, (Inflows) of Resources
2026 1,016,271 $
2027 1,490,805 2028 (27,095) 2029 (243,204) 2030 - Thereafter -

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 10: Pensions (Continued)
Payable to the Pension Plan
At June 30, 2025, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year then ended.

Allocation of the Proportional Share of the Net Pension Liability The allocation of the proportionate share of the net pension liability, pension expense, deferred outflows and inflows of resources are allocated as follows:

Percentage Allocation
Governmental Activities 98.72%
Business-Type Activities 1.28%
The governmental activities portion is allocated to the general fund departments as follows:

Percentage Allocation
General Government 24.48%
Public Safety 51.57%
Parks, Recreation and Senior Center 10.29%
Public Works 13.66%
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City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 11: Other Post-Employment Benefits
Plan Description
The City provides other post-employment benefits (OPEB) through a single employer defined benefit healthcare plan by contributing up to a maximum of $157 per month for premiums charged under the health benefit plan for all eligible employees and qualified family members. These benefits are provided per contract between the City and the employee associations. A separate financial report is not available for the plan. In fiscal year 2023, the City established an irrevocable trust with the Public Agency Retirement Services (PARS).

Employees Covered
As of the June 30, 2025 measurement date, the following current and former employees were covered by the benefit terms under the Plan:

Inactive employees benefit payments 83
Inactive employees entitled to but not yet receiving benefit payments - Participating active employees 17 Total 100
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the City, City Council, and/or employee associations. Currently, contributions are not required from plan members. For the fiscal year ended June 30, 2025, the City’s contributions were $0 in payments to the PARS trust, a contribution of $42,133 was made to pay current year premiums for retirees, and the estimated implied subsidy of $39,100, resulting in total contributions of $81,233.

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City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 11: Other Post-Employment Benefits (Continued)
Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2025 and the total OPEB liability was determined by an actuarial valuation dated June 30, 2024 based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions
Discount Rate 5.95%
Inflation 2.50%
Salary Increases 2.75%
Investment Rate of Return 5.95%
Mortality Rate 2021 CalPERS Mortality Rates
Pre-Retirement Turnover 2021 CalPERS Rates
Healthcare Trend Rate 4.00%
Discount Rate
The discount rate was 5.95% per year net of expenses. This is based on the Bond Buyer 20 Bond Index. The expected rate of return for the PARS Balanced portfolio is

5.95%.

Change of Assumptions
No changes in assumptions for the measurement date as of June 30, 2025.

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City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 11: Other Post-Employment Benefits (Continued)
Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
Balance at June 30, 2023 1,792,164 $ 356,956 $ 1,435,208 $ (Valuation Date: June 30, 2024)
Changes recognized for the
measurement period:

Service cost 97,286 - 97,286
Interest 107,111 38,032 69,079
Employer contributions - 81,233 (81,233) Changes of assumptions - - - Benefit payments (81,233) (81,233) - Experience (gain)/losses - - - Administrative expenses - (2,185) 2,185 Net changes 123,164 35,847 87,317 Balance at June 30, 2024 (Fiscal year ended June 30, 2025) 1,915,328 $ 392,803 $ 1,522,525 $ Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2025:

Current
1% Decrease Discount Rate 1% Increase
Net OPEB Liability 1,746,915 $ 1,522,525 $ 1,332,868 $

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 11: Other Post-Employment Benefits (Continued)
Sensitivity of the total OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the total 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 measurement period ended June 30, 2025:

Current Healthcare
1% Decrease Cost Trend Rates 1% Increase
Net OPEB Liability 1,264,420 $ 1,522,525 $ 1,843,265 $
OPEB Expense and Deferred Outflows and Deferred Inflows of Resources Related to OPEB
As of the start of the measurement period (July 1, 2024), the City’s net OPEB liability was $1,435,208. For the fiscal year ended June 30, 2025, the City recognized OPEB expense of $206,116. As of fiscal year ended June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Changes between expected and
actual experience 88,721 $ 148,372 $
Changes of assumptions 780,697 681,557
34,584 - Total 869,418 $ 864,513 $
Differences between projected and
actual return on assets
Amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:

Year Ended Deferred Outflows/
June 30 (Inflows) of Resources
2026 20,708 $
2027 20,711 2028 24,099
2029 28,874
2030 32,244
Thereafter (121,731)

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 12: Self-Insurance Program
General Liability
Since July 1, 2015, the City of Imperial Beach has been a member of Public Risk Innovation and Management (PRISM), an insurance risk sharing pool. The City's selfinsurance retention is $100,000 per occurrence.

In addition to its coverage through PRISM, effective July 1, 1993, the San Diego Unified Port District agreed to fund an Escrow Reserve Account in the amount of $300,000 for the purpose of reimbursing the City for any claim costs not covered by the insurance risk sharing pool, provided the claim is directly related to services provided to the District and arising from incidents actually occurring on tidelands and/or lands leased by the City to the District.

Workers Compensation
The City is a member of Public Risk Innovation and Management (PRISM). The City is self-insured for the first $125,000 of workers' compensation claims. Claims between $125,000 and $5,000,000 are covered through the City's risk sharing membership in PRISM. Claims between $5,000,000 and $50,000,000 are covered by excess purchased insurance.

The City established a Self-Insurance Fund (an internal service fund) to account for and finance its uninsured risk of loss when it became a member of SANDPIPA, PEPIP and PRISM for liability, property casualty and workers' compensation coverage. All funds of the City participate in the program and make payments to the Self-Insurance Fund based on estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophe losses. The estimated claims liability of $286,000 reported at June 30, 2025, is based on the requirements of Governmental Accounting Standards Board Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The above amount includes an estimate for incurred but not reported claims.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 12: Self-Insurance Program (Continued)
During the last three fiscal years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.

Changes in the reported liability for the last three fiscal years are as follows:
2022-2023 2023-2024 2024-2025
Claims outstanding at beginning of year 700,000 $ 828,000 $ 370,000 $ Claims and changes in estimates 141,247 (93,747) (80,182) Claim payments (13,247) (364,253) (3,818) Claims outstanding at end of year 828,000 $ 370,000 $ 286,000 $ Note 13: Commitments and Contingencies
THE AFFORDABLE HOUSING COALITION OF SAN DIEGO V. TRACY SASNOVAL, ET AL-. the San Diego County Affordable Housing Coalition of San Diego County (“Petitioner”) filed a petition for a writ of mandate seeking to have unmet affordable housing development obligations, including the projects and /or funds needed to meet them, as well as repayment of all deferrals and loans owed to the Low and Moderate Income Housing Fund (“Housing Fund”), to be recognized as “enforceable obligations” under the Dissolution Laws and placed on the Successor Agency’s Recognized Obligation Payment Schedule (“ROPS”) for future payment with the Redevelopment Property Tax Trust Funds (“RPTTF”) (See Health and Safety Code §§34172(c) and (d); 34182(c)(2); 34183). The City is named in the action as a real party in interest. The Successor Agency is named as a respondent and defendant.

On September 27, 2016, Judge Michael Kenny ruled that the Affordable Housing obligations are not enforceable obligations and denied the Petition for Writ of Mandate. The ruling was appealed by Petitioner. After oral argument, on July 20, 2020, the Third Appellate District ruled that repayment of all deferrals and loans owed to the Housing Fund were “enforceable obligations” under the Dissolution Laws but denied the remaining claims of Petitioner. On remand to the Trial Court, Judge Shelleyanne W.L. Chang ordered that all respondents file “returns” identifying the status of repayment of deferrals and loans owed to the Housing Fund. The City and the Successor Agency reported that it had no such deferrals or loans. Petitioner never formally challenged the “returns” with a Motion nor did the Petitioner claim that the “return” of Imperial Beach was incorrect. It appears that the case on the claims is over, although there is no statutory provision which limits the time for a challenge to the “returns” by Petitioner. While it is not anticipated that such a challenge by Petitioner will be filed on Imperial Beach’s “return”, there is no certainty that such a challenge will not occur. Petitioner, however, did file a Motion for Attorneys’ Fees, but did not name the City or the Successor Agency as party against whom a demand for attorneys’ fees was made. Ultimately, Petitioner’s Motion for Attorneys’ fees was denied by the Court.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 14: Successor Agency Trust for Assets of the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1 X 26 ("the Bill ") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Imperial Beach that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill 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 November 1, 2011, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011,) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.
a. Cash and Investments
Cash and investments reported in the accompanying financial statements consisted of the following:

Cash and investments pooled with the City 1,739,265 $
Cash and investments with fiscal agent 1,844 $ 1,741,109 The remainder of this page left intentionally blank.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
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Note 14: Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued)
b. Long-Term Debt
A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2025, follows:

Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Public Offerings:
2020 Tax Allocation Bonds 13,780,000 $ - $ - $ 13,780,000 $ - $ 2020 Tax Allocation Bonds
Premium 2,194,871 - (140,009) 2,054,862 - 2022 Tax Allocation Bonds 10,005,000 - (955,000) 9,050,000 985,000 2022 Tax Allocation Bonds Premium 1,216,681 - (140,224) 1,076,457 - Total Public Offerings 27,196,552 $ - $ (1,235,233) $ 25,961,319 $ 985,000 $

Tax Allocation Bonds, 2020
In March 2020, the Imperial Beach Public Financing Authority issued $14,490,000 Tax Allocation Bonds, 2020. The proceeds of the bonds were to defease the 2010 Tax Allocation Bonds. Interest on the bonds is payable semiannually and principal payments are due annually. Debt service payments occur on June 1, 2021, and then from June 1, 2034, through June 1, 2040.

Interest rates on the bonds is 4% per annum. The balance at June 30, 2025, excluding unamortized original issue premium of $2,054,862 is $13,780,000.

The outstanding 2020 bonds contain a provision that upon the occurrence and during the continuance of any event of default the timing of the principal of the bonds, together with the accrued interest thereon, become due and payable immediately.

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City of Imperial Beach
Notes to Financial Statements
June 30, 2025
-76-
Note 14: Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued)
b. Long-Term Debt
The following is a schedule by years, of future debt service payments as of June 30, 2025:

Year Ending 2020 Tax Allocation Refunding Bonds
June 30, Principal Interest
2026 - $ 551,200 $
2027 - 551,200 2028 - 551,200
2029 - 551,200
2030 - 551,200
2031-2035 3,135,000 2,694,600 2036-2040 10,645,000 1,342,200 Totals $ 6,792,800 13,780,000 $
Tax Allocation Bonds, 2022
In March 2022, the Imperial Beach Public Financing Authority issued $11,800,000 Tax Allocation Bonds, 2022. The proceeds of the bonds were to defease the 2013 Tax Allocation Bonds. Interest on the bonds is payable semiannually and principal payments are due annually. Debt service payments occur from June 1, 2022, through June 1, 2033. Interest rates on the bonds is 4% per annum. The balance at June 30, 2025, excluding unamortized original issue premium of $1,076,457 is $9,050,000.

The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $6,610. This difference is being amortized on a straight-line basis as interest expense (interest on debt). The City refunded the Series 2013 Tax Allocation Bonds to reduce its total debt service payments by $2,144,313 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt, less any prior funds on hand) of $1,783,298.

The outstanding 2022 bonds contain a provision that the principal due on the Bonds is subject to acceleration upon the occurrence of an event of default. As a practical matter in the event of a payment default by the Successor Agency, it is unlikely the Successor Agency would have the financial resources to meet accelerated obligations. No real or personal property in the project area is pledged to secure the bonds, and it is not anticipated that the Successor Agency will have available moneys sufficient to redeem all of the Bonds in the event of a default.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
-77-
Note 14: Successor Agency Trust for Assets of the Former Redevelopment Agency (Continued)
b. Long-Term Debt
The following is a schedule by years, of future debt service payments as of June 30, 2025, follows:

Year Ending 2022 Tax Allocation Refunding Bonds
June 30, Principal Interest
2026 985,000 $ 362,000 $
2027 1,015,000 322,600 2028 1,065,000 282,000
2029 1,105,000 239,400
2030 1,150,000 195,200
2031-2033 3,730,000 302,000
Totals $ 1,703,200 9,050,000 $
Pledged Revenue
The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low- and Moderate-Income Housing set-aside and pass-through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low- and Moderate-Income Housing projects and to defease previously issued bonds. Assembly Bill 1 X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. c. Insurance
The Successor Agency is covered under the City of Imperial Beach's insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 12.

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
-78-
Note 15: Restricted Components of Net Position
The restricted component of net position is made up of assets that are subject to constraints either (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation. In fiscal year 2025, the City did not have any components of net position restricted by enabling legislation.

The restricted component of net position at June 30, 2025, for governmental activities is as follows:

Restricted for Community Development Projects:

Housing Authority $ 1,105,152
Total
Restricted for Public Works:

Gas Tax 29,171$
RMRA 2,142,606
Capital Projects 744,814
Total 2,916,591
Restricted for Public Safety:

Supplemental Law Enforcement 79,222
Restricted for Parks, Recreation and Senior Center:

Parks Maintenance 892,406
Total
Restricted for Pension section 115 trust:

General 1,298,153
Total Restricted Component of Net Position -
Government Activities $ 6,291,524

City of Imperial Beach
Notes to Financial Statements
June 30, 2025
-79-
Note 16: Tax Abatement
The City entered into an agreement with Sudberry-Palm Avenue LLC (Developer) on June 6, 2018. The Developer is the owner of certain real property totaling approximately 1.4 acres and located in the City of Imperial Beach on which the Developer operates and maintains a hotel known as “Hampton Inn by Hilton”. In order to induce the Developer to construct and operate the hotel on the property for the Operating Period, and upon the fulfillment of the City Disbursement Conditions, the City agreed provide to the Developer TOT Incentive Payments upon the terms set and as follows:

The City shall pay TOT Incentive Payments to Developer pursuant to and in accordance with the terms of the Agreement in an amount equal to fifty percent (50%) of the Net Transient Occupancy Tax Revenues collected and remitted to the City from the Hotel during the first ten (10) years of operation of the Hotel commencing upon the City's receipt of the Opening Certification from Developer ("Payment Period") provided, however, that the aggregate total of TOT Incentive Payments shall not exceed a total amount of Two Million Five Hundred Thousand Dollars ($2,500,000), subject to the limitations set forth in the definitions of Net Transient Occupancy Tax Collected and TOT Incentive Payments.

Upon commencement of the Payment Period, TOT Incentive Payments shall be made by the City to Developer every six (6) months thereafter no later than sixty (60) Days after the applicable six (6) month period. The amount of the TOT Incentive Payments due on each such payment date shall be calculated and based upon the Net Transient Occupancy Tax Revenues Collected and remitted to the City from the Hotel in the immediate prior six (6) month period, subject to the limitations set forth in the definitions of Net Transient Occupancy Tax Collected and TOT Incentive Payments.

The City's making of TOT Incentive Payments pursuant to the Agreement shall not be deemed to constitute a pledge of any particular funds by the City, but instead an obligation contingent upon the construction and operation of the Hotel and the City's receipt of Transient Occupancy Tax from the Hotel in accordance with the terms of the Agreement.

For the year ended of June 30, 2025, the City abated TOT taxes totaling $254,018 under this agreement.

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City of Imperial Beach
Schedule of Proportionate Share of the Net Pension Liability And Related Ratios as of the Measurement Date
As of June 30, for the Last Ten Fiscal Years
See Notes to Required Supplementary Information
-80-
Measurement
Date
Employer's
Proportion of the
Collective Net
Pension Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a
Percentage of
the Employer's
Covered Payroll
Pension Plan
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability
6/30/2015 0.11650% 7,997,144 $ 4,287,307 $ 186.53% 78.40% 6/30/2016 0.12284% 10,629,198 4,984,408 213.25% 74.06%
6/30/2017 0.12522% 12,418,086 5,217,228 238.02% 73.31%
6/30/2018 0.12807% 12,341,076 5,241,053 235.47% 75.26%
6/30/2019 0.08029% 8,227,242 5,670,863 145.08% 75.26%
6/30/2020 0.08736% 9,504,977 5,774,101 164.61% 75.10%
6/30/2021 0.04211% 2,277,672 5,971,175 38.14% 88.29%
6/30/2022 0.10509% 12,138,749 6,625,249 183.22% 76.68%
6/30/2023 0.10852% 13,537,936 7,370,969 183.67% 76.21%
6/30/2024 0.10911% 13,231,805 8,128,064 162.79% 78.08%
1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

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City of Imperial Beach
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
See Notes to Required Supplementary Information
-81-
Fiscal Year
Actuarially
Determined
Contribution
Contributions
in Relation to
the Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Employer's
Covered
Payroll
Contributions
as a
Percentage
of Covered
Payroll
6/30/2016 928,277 $ (928,277) $ - $ 4,984,408 $ 18.62%
6/30/2017 1,015,261 (1,015,261) - 5,217,228 19.46%
6/30/2018 1,159,776 (1,159,776) - 5,241,053 22.13%
6/30/2019 3,424,387 (8,454,260) (5,029,873) 5,670,863 149.08% 6/30/2020 1,226,832 (1,226,832) - 5,774,101 21.25%
6/30/2021 1,386,331 (1,386,331) - 5,971,175 23.22%
6/30/2022 1,498,066 (1,498,066) - 6,625,249 22.61%
6/30/2023 1,697,620 (1,697,620) - 7,370,969 23.03%
6/30/2024 1,769,672 (1,769,672) - 8,128,064 21.77%
6/30/2025 2,053,190 (2,053,190) - 8,350,014 24.59%
Notes to Schedule:

Changes in Assumptions: There were no assumption changes in 2023 or 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, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs.

Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities.

These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

City of Imperial Beach
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, 2025 for the Last Ten Fiscal Years (1)
See Notes to Required Supplementary Information
-82-
Measurement Date (June 30) 2024 2023 2022 2021 2020 2019 Report Date (June 30) 2025 2024 2023 2022 2021 2020
Total OPEB Liability
Service cost 97,286 $ 83,991 $ 132,985 $ 141,432 $ 136,440 $ 42,506 $ Interest on TOL / Return on FNP 107,111 96,732 72,880 52,597 51,105 31,887 Differences between expected and actual experience - (103,280) - (90,018) - 170,621 Changes in assumptions - 166,089 (546,410) (400,373) 13,465 1,180,019 Benefit payments (81,233) (70,226) (65,703) (85,701) (97,152) (23,042) Net change in total OPEB liability 173,306 123,164 (406,248) (382,063) 103,858 1,401,991 Total OPEB liability - beginning 1,618,858 1,792,164 2,025,106 2,407,169 2,303,311 901,320 Total OPEB liability - ending (a) $ 1,792,164 1,915,328 $ 1,618,858 $ 2,025,106 $ 2,407,169 $ 2,303,311 $ Plan Fiduciary Net Position
Interest on TOL / Return on FNP 38,032 42,639 16,932 - - - Contribution - employer 81,233 70,226 365,703 - - - Benefit payments (81,233) (70,226) (65,703) - - - Administrative expense (2,185) (1,900) (715) - - - Net change in Plan Fiduciary Net Position 40,739 35,847 316,217 - - - Plan Fiduciary Net Position - beginning 316,217 356,956 - - - - Plan Fiduciary Net Position - ending (b) 356,956 392,803 316,217 - - - Net OPEB Liability - ending (a) - (b) $ 1,435,208 1,522,525 $ 1,302,641 $ 2,025,106 $ 2,407,169 $ 2,303,311 $ Plan fiduciary net position as a percentage
of the total OPEB liability 20.51% 19.92% 19.53% 0.00% 0.00% 0.00% Covered-employee payroll 8,504,114 $ 8,285,467 $ 7,502,746 $ 6,625,249 $ 6,059,385 $ 5,878,059 $ Net OPEB liability as a percentage of
covered-employee payroll 17.90% 17.32% 17.36% 30.57% 39.73% 39.18% Notes to Schedule:

Prior to fiscal year 2023, the City did not accumulate assets in a qualifying trust for future OPEB benefits.

Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in the schedule. (1) Historical information is required only for measurement years for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.

See Notes to Required Supplementary Information
-83-
2018 2017
2019 2018
$ 36,905 37,920 $
28,779 28,462
- -
- 41,088
(20,915) (770)
44,769 106,700
749,851 794,620 $ 794,620 901,320 $
- -
- -
- -
- -
- -
- -
- - $ 794,620 901,320 $

0.00% 0.00%
$ 5,388,899 5,484,385 $

16.43% 14.75%

City of Imperial Beach
Schedule of Plan Contributions
As of June 30, 2025 for the Last Ten Fiscal Years (1)
See Notes to Required Supplementary Information
-84-
Fiscal Year Ended June 30, 2025 2024 2023
Contractually Determined Contributions (CDC) $ 32,130 32,130 $ 29,520 $ Contributions in relation to the CDC (31,127) (42,133) (329,520) Contribution deficiency/(excess) $ 1,003 (10,003) $ (300,000) $ Covered-employee payroll $ 8,285,467 8,504,114 $ 7,502,746 $ Contribution as a percentage of covered-employee payroll 0.50% 0.38% 4.39% Notes to schedule:

Valuation date used 6/30/2024
Actuarial cost method Entry Age Normal
Amortization method Level % of pay
Amortization period 12.3 years
Asset valuation method Fair Value
Inflation 2.50%
Healthcare cost trend rates 4.00%
Salary increases 2.75%
Investment rate of return 5.95%
Retirement age From 50 to 62
Mortality 2021 CalPERS Study 1 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.

SCHEDULE OF CONTRIBUTIONS
Prior to fiscal year 2023, the City did not accumulate assets in a qualifying trust for future OPEB benefits, and as such, therefore information prior to fiscal year ended June 30, 2023 is not presented.

Contributions are fixed and not based on a measure of pay, therefore covered-employee payroll is used in the schedule.

City of Imperial Beach
Budgetary Comparison Schedule by Department
General Fund
Year Ended June 30, 2025
See Notes to Required Supplementary Information
-85-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 19,077,082 $ 19,077,082 $ 19,077,082 $ - $ Resources (Inflows):

Taxes 20,196,700 21,092,200 21,085,034 (7,166) Licenses and permits 712,400 1,092,400 1,085,524 (6,876) Intergovernmental 117,700 145,931 194,101 48,170
Charges for services 6,877,900 7,445,800 7,457,788 11,988 Use of money and property 396,300 344,198 1,295,469 951,271 Fines and forfeitures 223,000 226,400 270,728 44,328 Miscellaneous 982,300 878,200 1,048,688 170,488 Subscription acquisition - 17,901 17,901 - Transfers in 1,051,000 1,021,695 1,024,831 3,136 Amounts Available for Appropriations 49,634,382 51,341,807 52,557,146 1,215,339 Charges to Appropriation (Outflow):

General government
Mayor/City Council 338,500 324,930 334,004 (9,074) City Clerk's Office 586,000 515,900 491,128 24,772 City Manager 717,300 743,544 733,406 10,138
Human Resources 403,200 436,300 465,040 (28,740) Administrative Services 1,067,100 1,186,000 1,181,729 4,271 City Attorney 231,000 258,800 258,754 46 Facilities Maintenance 679,500 650,500 625,960 24,540 Non-Departmental 3,416,600 3,252,300 3,257,048 (4,748) Public safety
Law Enforcement Contract 8,906,900 8,640,100 8,635,728 4,372 Fire Protection 3,605,400 3,840,100 3,821,048 19,052 Ocean/Beach Safety 1,757,500 1,681,700 1,681,485 215 Building and Housing Inspection 683,200 761,700 751,321 10,379 Animal Control 299,500 299,500 303,331 (3,831) Code Enforcement 187,100 195,200 196,100 (900) Community Development 658,600 750,675 761,326 (10,651) Parks, recreation and senior center Recreation 1,327,300 845,806 811,783 34,023 Park Maintenance 822,600 790,370 761,837 28,533 Senior Services 85,700 304,300 297,756 6,544 Tideland Maintenance 1,103,900 1,144,525 1,129,544 14,981 Community and neighborhood services 426,300 329,600 298,864 30,736 Public works
Street Maintenance 1,277,000 1,636,575 1,634,972 1,603 Administration 531,400 553,300 555,097 (1,797) Solid Waste Management 115,700 113,000 113,311 (311) Storm Water 418,000 393,800 386,414 7,386 Debt Service Principal - 51,413 51,413 -
Interest - 781 781 - Capital outlay 328,000 335,043 242,523 92,520 Transfers out 29,100 715,696 715,696 - Total Charges to Appropriations 30,002,400 30,751,458 30,497,399 254,059 Budgetary Fund Balance, June 30 19,631,982 $ 20,590,349 $ 22,059,747 $ 1,469,398 $

City of Imperial Beach
Budgetary Comparison Schedule
Miscellaneous Grants Fund
Year Ended June 30, 2025
See Notes to Required Supplementary Information
-86-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 306,727 $ 306,727 $ 306,727 $ - $ Resources (Inflows):

Intergovernmental 20,000 2,514,514 5,659,179 3,144,665 Use of money and property - - 40,244 40,244 Miscellaneous - - 2,425 2,425 Amounts Available for Appropriations 326,727 2,821,241 6,008,575 3,187,334 Charges to Appropriation (Outflows):

Public safety 20,000 20,000 - 20,000 Community development - 3,708,687 1,125,418 2,583,269 Parks and recreation - 56,633 78,882 (22,249) Public works - 652,715 416,862 235,853 Capital outlay - 5,905,274 4,662,787 1,242,487 Total Charges to Appropriations 20,000 10,343,309 6,283,949 4,059,360 Budgetary Fund Balance, June 30 306,727 $ (7,522,068) $ (275,374) $ 7,246,694 $

City of Imperial Beach
Notes to Required Supplementary Information
June 30, 2025
-87-
Note 1: General Budget Policies
The two-year operating budget adopted by the City Council provides for the general operations of the City. It includes proposed expenditures and the means of financing them on a departmental basis. Budgets are legally adopted for the General Fund and the Special Revenue Funds.

The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. All amendments made during the year are included in the budgetary amounts reported herein. The "appropriated budget" covers all City expenditures, with the exception of debt service on bond issues and capital improvement projects carried forward from prior years, which expenditures constitute the legally authorized "non-appropriated budget." Actual expenditures may not exceed budgeted appropriations at the fund level, which is the legal level of control for the Capital Projects Funds. All other funds use the departmental level as the legal level of control.

Formal budgetary integration is employed as a management control device during the year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures.

Appropriations that are encumbered lapse at year-end and then are added to the following years' budgeted appropriations.

Budgets for the General Fund and Special Revenue Funds are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP).

Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. Appropriations for capital projects authorized but not constructed or completed during the year are carried forward as continuing appropriations into the following year's budget.

Under Article Xlll-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset by a deficit in the following year. For the fiscal year ended June 30, 2025, based on calculations by City staff, proceeds of taxes did not exceed appropriations. Further, Section 5 of Article Xlll-B allows the City to designate a portion of fund balance for general contingencies to be used for any purpose.

Appropriations lapse at the end of the fiscal year except for the Capital Projects Funds, which may be carried over to the next fiscal year if not completed at year-end.

Expenditures may not exceed budget appropriations at the department level for the General Fund and at the function level for the Special Revenue Funds.

City of Imperial Beach
Notes to Required Supplementary Information
June 30, 2025
-88-
Note 1: General Budget Policies (Continued)
A project-length budget is adopted for the capital projects funds. The debt service fund is governed by bond covenants; therefore, a formal budget is not adopted. Thus, the City does not show a budget comparison debt service funds. a. Excess of Expenditures Over Appropriations
Excess expenditures over appropriations were as follows:

Expenditures Appropriations Excess
General Fund:

General government
Mayor/City Council 334,004 $ 324,930 $ (9,074) $
Human Resources 465,040 436,300 (28,740) Non-Departmental 3,257,048 3,252,300 (4,748) Public safety Animal Control 303,331 299,500 (3,831)
Code Enforcement 196,100 195,200 (900) Community Development 761,326 750,675 (10,651) Public works Administration 555,097 553,300 (1,797) Solid Waste Management 113,311 113,000 (311) Miscellaneous Grant Fund:

Parks and recreation 78,882 56,633 (22,249) Gas Tax Fund:

Transfers out 757,831 757,800 (31) CDBG Grant Fund:

Transfers out 116,708 116,700 (8) Housing Authority Fund:

Community Development 18,321 18,300 (21)

b. Basis of Budgeting
Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP.

City of Imperial Beach
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
-89-
Special Revenue Funds
Supplemental
Law
Gas Tax Prop A Tax CDBG Grant Enforcement
Assets:

Pooled cash and investments - $ 33,019 $ - $ 95,857 $
Receivables:

Accounts - - - - Due from other governments 70,351 - - - Total Assets 70,351 $ 33,019 $ - $ 95,857 $ Liabilities and Fund Balances:

Liabilities:

Accounts payable - $ 312,406 $ - $ 16,635 $
Due to other funds 41,180 - - - Total Liabilities 41,180 312,406 - 16,635 Fund Balances (Deficit):

Restricted for:

Community development projects - - - - Public safety - - - 79,222 Parks, recreation and senior center - - - - Public works 29,171 - - - Unassigned (279,387) - - - Total Fund Balance (Deficit) 29,171 (279,387) - 79,222 Total Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) 70,351 $ 33,019 $ - $ 95,857 $

City of Imperial Beach
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025 (Continued)
-90-
Capital Projects Funds
Parks
Housing Maintenance Capital
RMRA Authority CIP Projects
Assets:

Pooled cash and investments 2,021,631 $ 971,618 $ 899,804 $ 759,766 $ Receivables:

Accounts - 133,534 - - Due from other governments 127,806 - - - Total Assets 2,149,437 $ 1,105,152 $ 899,804 $ 759,766 $ Liabilities and Fund Balances:

Liabilities:

Accounts payable 6,831 $ - $ 7,398 $ 14,952 $
Due to other funds - - - - Total Liabilities 6,831 - 7,398 14,952 Fund Balances (Deficit):

Restricted for:

Community development projects - 1,105,152 - - Public safety - - - - Parks, recreation and senior center - - 892,406 - Public works 2,142,606 - - 744,814 Unassigned - - - - Total Fund Balance (Deficit) 2,142,606 1,105,152 892,406 744,814 Total Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) 2,149,437 $ 1,105,152 $ 899,804 $ 759,766 $ Special Revenue Funds

City of Imperial Beach
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025 (Concluded)
-91-
Total Nonmajor
Governmental
Funds
Assets:

Pooled cash and investments 4,781,695 $
Receivables:

Accounts 133,534 Due from other governments 198,157
Total Assets 5,113,386 $
Liabilities and Fund Balances:

Liabilities:

Accounts payable 358,222 $
Due to other funds 41,180 Total Liabilities 399,402 Fund Balances (Deficit):

Restricted for:

Community development projects 1,105,152 Public safety 79,222 Parks, recreation and senior center 892,406 Public works 2,916,591 Unassigned (279,387) Total Fund Balance (Deficit) 4,713,984
Total Liabilities, Deferred Inflows of
Resources and Fund Balance (Deficit) 5,113,386 $

City of Imperial Beach
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025
-92-
Special Revenue Funds
Supplemental
Law
Gas Tax Prop A Tax CDBG Grant Enforcement
Revenues:

Licenses and permits - $ 54,227 $ - $ - $
Intergovernmental 757,831 1,134,549 116,708 194,663 Use of money and property 15,266 892 - - Total Revenues 773,097 1,189,668 116,708 194,663 Expenditures:

Current:

Public safety - - - 115,441 Community development - - - - Debt Service:

Principal - 334,736 - -
Interest - 10,356 - - Capital outlay - 573,521 - - Total Expenditures - 918,613 - 115,441 Excess (Deficiency) of Revenues Over (Under) Expenditures 773,097 271,055 116,708 79,222 Other Financing Sources (Uses):

Proceeds of commercial paper - 101,000 - - Transfers in - - 1 - Transfers out (757,831) (267,000) (116,708) - Total Other Financing Sources (Uses) (757,831) (166,000) (116,707) - Net Change in Fund Balances 15,266 105,055 1 79,222 Fund Balances, Beginning of Year 13,905 (384,442) (1) - Fund Balances (Deficits), End of Year 29,171 $ (279,387) $ - $ 79,222 $

City of Imperial Beach
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025 (Continued)
-93-
Parks
Housing Maintenance Capital
RMRA Authority CIP Projects
Revenues:

Licenses and permits - $ - $ 52,532 $ - $
Intergovernmental 789,301 - - - Use of money and property 93,539 198,022 59,203 42,237 Total Revenues 882,840 198,022 111,735 42,237 Expenditures:

Current:

Public safety - - - - Community development - 18,321 - - Debt Service:

Principal - - - -
Interest - - - - Capital outlay 206,028 - 702,570 397,120 Total Expenditures 206,028 18,321 702,570 397,120 Excess (Deficiency) of Revenues
Over (Under) Expenditures 676,812 179,701 (590,835) (354,883) Other Financing Sources (Uses):

Proceeds of commercial paper - - - - Transfers in - - - 305,000 Transfers out - - - - Total Other Financing Sources (Uses) - - - 305,000 Net Change in Fund Balances 676,812 179,701 (590,835) (49,883) Fund Balances, Beginning of Year 1,465,794 925,451 1,483,241 794,697 Fund Balances (Deficits), End of Year 2,142,606 $ 1,105,152 $ 892,406 $ 744,814 $ Special Revenue Funds Capital Projects Funds

City of Imperial Beach
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
Year Ended June 30, 2025 (Concluded)
-94-
Total Nonmajor
Governmental
Funds
Revenues:

Licenses and permits 106,759 $
Intergovernmental 2,993,052 Use of money and property 409,159 Total Revenues 3,508,970 Expenditures:

Current:

Public safety 115,441 Community development 18,321 Debt Service:

Principal 334,736
Interest 10,356
Capital outlay 1,879,239 Total Expenditures 2,358,093
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,150,877
Other Financing Sources (Uses):

Proceeds of commercial paper 101,000 Transfers in 305,001 Transfers out (1,141,539) Total Other Financing Sources (Uses) (735,538) Net Change in Fund Balances 415,339 Fund Balances, Beginning of Year 4,298,645 Fund Balances (Deficits), End of Year 4,713,984 $

City of Imperial Beach
Budgetary Comparison Schedule – Special Revenue Funds
Gas Tax
Year Ended June 30, 2025
-95-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 13,905 $ 13,905 $ 13,905 $ - $ Resources (Inflows):

Intergovernmental 775,200 761,300 757,831 (3,469) Use of money and property - - 15,266 15,266 Amounts Available for Appropriations 789,105 775,205 787,002 11,797 Charges to Appropriation (Outflows):

Transfers out 775,200 757,800 757,831 (31) Total Charges to Appropriations 775,200 757,800 757,831 (31) Budgetary Fund Balance, June 30 13,905 $ 17,405 $ 29,171 $ 11,766 $

City of Imperial Beach
Budgetary Comparison Schedule – Special Revenue Funds
Prop A Tax
Year Ended June 30, 2025
-96-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 (384,442) $ (384,442) $ (384,442) $ - $ Resources (Inflows):

Licenses and permits 27,400 54,200 54,227 27
Intergovernmental 267,000 789,500 1,134,549 345,049 Use of money and property - - 892 892 Proceeds of commercial paper - 101,000 101,000 - Amounts Available for Appropriations (90,042) 560,258 906,226 345,968 Charges to Appropriation (Outflows):

Debt Service
Principal - 334,736 334,736 -
Interest - 10,356 10,356 - Capital outlay - 1,312,638 573,521 739,117 Transfers out 267,000 267,000 267,000 - Total Charges to Appropriations 267,000 1,924,730 1,185,613 739,117 Budgetary Fund Balance (Deficit), June 30 (357,042) $ (1,364,472) $ (279,387) $ 1,085,085 $

City of Imperial Beach
Budgetary Comparison Schedule – Special Revenue Funds
CDBG Grant
Year Ended June 30, 2025
-97-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance (Deficit), July 1 (1) $ (1) $ (1) $ - $ Resources (Inflows):

Intergovernmental 129,000 129,000 116,708 (12,292) Transfers in - - 1 1 Amounts Available for Appropriations 128,999 128,999 116,708 (12,291) Charges to Appropriation (Outflows):

Transfers out 129,000 116,700 116,708 (8) Total Charges to Appropriations 129,000 116,700 116,708 (8) Budgetary Fund Balance (Deficit), June 30 (1) $ 12,299 $ - $ (12,299) $

City of Imperial Beach
Budgetary Comparison Schedule – Special Revenue Funds
Supplemental Law Enforcement
Year Ended June 30, 2025
-98-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 - $ - $ - $ - $
Resources (Inflows):

Intergovernmental 125,000 194,700 194,663 (37) Amounts Available for Appropriations 125,000 194,700 194,663 (37) Charges to Appropriation (Outflows):

Public safety 125,000 125,000 115,441 9,559 Total Charges to Appropriations 125,000 125,000 115,441 9,559 Budgetary Fund Balance, June 30 - $ 69,700 $ 79,222 $ 9,522 $

City of Imperial Beach
Budgetary Comparison Schedule – Special Revenue Funds
RMRA
Year Ended June 30, 2025
-99-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,465,794 $ 1,465,794 $ 1,465,794 $ - $ Resources (Inflows):

Intergovernmental 661,900 661,900 789,301 127,401 Use of money and property - - 93,539 93,539 Amounts Available for Appropriations 2,127,694 2,127,694 2,348,634 220,940 Charges to Appropriation (Outflows):

Capital outlay 661,900 1,831,660 206,028 1,625,632 Total Charges to Appropriations 661,900 1,831,660 206,028 1,625,632 Budgetary Fund Balance, June 30 1,465,794 $ 296,034 $ 2,142,606 $ 1,846,572 $

City of Imperial Beach
Budgetary Comparison Schedule – Special Revenue Funds
Housing Authority
Year Ended June 30, 2025
-100-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 925,451 $ 925,451 $ 925,451 $ - $ Resources (Inflows):

Use of money and property - - 198,022 198,022 Amounts Available for Appropriations 925,451 925,451 1,123,473 198,022 Charges to Appropriation (Outflows):

Community development - 18,300 18,321 (21) Total Charges to Appropriations - 18,300 18,321 (21) Budgetary Fund Balance, June 30 925,451 $ 907,151 $ 1,105,152 $ 198,001 $

City of Imperial Beach
Budgetary Comparison Schedule – Capital Projects Funds
Parks Maintenance CIP
Year Ended June 30, 2025
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Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,483,241 $ 1,483,241 $ 1,483,241 $ - $ Resources (Inflows):

Licenses and permits 40,000 52,500 52,532 32 Use of money and property - - 59,203 59,203 Amounts Available for Appropriations 1,523,241 1,535,741 1,594,976 59,235 Charges to Appropriation (Outflows):

Capital outlay - 1,370,395 702,570 667,825 Total Charges to Appropriations - 1,370,395 702,570 667,825 Budgetary Fund Balance (Deficit), June 30 1,523,241 $ 165,346 $ 892,406 $ 727,060 $

City of Imperial Beach
Budgetary Comparison Schedule – Capital Projects Funds
Capital Projects
Year Ended June 30, 2025
-102-
Budget Amounts Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance (Deficit), July 1 794,697 $ 794,697 $ 794,697 $ - $ Resources (Inflows):

Use of money and property - - 42,237 42,237 Transfers in - 305,000 305,000 - Amounts Available for Appropriations 794,697 1,099,697 1,141,934 42,237 Charges to Appropriation (Outflows):

Capital outlay - 1,089,174 397,120 692,054 Total Charges to Appropriations - 1,089,174 397,120 692,054 Budgetary Fund Balance (Deficit), June 30 794,697 $ 10,523 $ 744,814 $ 734,291 $

City of Imperial Beach
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
-103-
Vehicle Facilities
Replacement & Self- Technology & Repair &
Maintenance Insurance Communication Maintenance Total
Assets:

Current:

Pooled Cash and investments 1,255,279 $ 2,230,258 $ 809,752 $ 536,209 $ 4,831,498 $ Receivables:

Accounts - 1,413 - - 1,413 Due from other governments 20,693 - - - 20,693 Total Current Assets 1,275,972 2,231,671 809,752 536,209 4,853,604 Noncurrent:

Capital assets, not being depreciated 1,009,858 - - - 1,009,858 Capital assets, net of depreciation 365,154 - 176,616 47,118 588,888 Total Noncurrent Assets 1,375,012 - 176,616 47,118 1,598,746 Total Assets 2,650,984 2,231,671 986,368 583,327 6,452,350 Deferred Outflows of Resources:

Deferred pension related items 26,743 16,675 16,989 - 60,407 Deferred OPEB related items 7,390 4,608 4,695 - 16,693 Total Deferred Outflows of Resources 34,133 21,283 21,684 - 77,100 Liabilities:

Current:

Accounts payable 135,552 931 6,317 69,288 212,088 Accrued liabilities 26,891 6,357 28,251 - 61,499 Compensated absences due in one year 13,178 8,961 9,787 - 31,926 Claims and judgments due in one year - 69,000 - - 69,000 Long-term liabilities due in one year 100,990 - 23,330 - 124,320 Total Current Liabilities 276,611 85,249 67,685 69,288 498,833 Noncurrent:

Compensated absences due in more than one year 1,718 8,562 22,867 - 33,147 Claims and judgments due in more than one year - 217,000 - - 217,000 Long-term liabilities 217,194 - 24,711 - 241,905 Net pension liability 64,944 40,495 41,259 - 146,698 Net OPEB liability 12,941 8,069 8,222 - 29,232 Total Noncurrent Liabilities 296,797 274,126 97,059 - 667,982 Total Liabilities 573,408 359,375 164,744 69,288 1,166,815 Deferred Inflows of Resources:

Deferred pension related items 5,286 3,296 3,358 - 11,940 Deferred OPEB related items 7,348 4,582 4,668 - 16,598 Total Deferred Inflows of Resources 12,634 7,878 8,026 - 28,538 Net Position:

Net nvestment in capital assets 1,056,828 - 128,575 47,118 1,232,521 Unrestricted 1,042,247 1,885,701 706,707 466,921 4,101,576 Total Net Position 2,099,075 $ 1,885,701 $ 835,282 $ 514,039 $ 5,334,097 $

City of Imperial Beach
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2025
-104-
Vehicle Facilities
Replacement & Self- Technology & Repair &
Maintenance Insurance Communication Maintenance Total
Operating Revenues:

Sales and service charges 595,500 $ 993,600 $ 982,800 $ 150,100 $ 2,722,000 $ Miscellaneous 165,945 - - - 165,945 Total Operating Revenues 761,445 993,600 982,800 150,100 2,887,945 Operating Expenses:

Services and supplies 335,804 48,031 459,708 69,315 912,858 Claims expense - 779,814 - - 779,814 Personnel and administrative 246,038 123,312 455,401 - 824,751 Depreciation/ amortization expense 93,744 - 115,291 11,755 220,790 Total Operating Expenses 675,586 951,157 1,030,400 81,070 2,738,213 Operating Income (Loss) 85,859 42,443 (47,600) 69,030 149,732 Nonoperating Revenues (Expenses):

Investment income 56,912 93,089 32,338 22,613 204,952 Miscellaneous revenue - 101,236 - - 101,236 Interest expense (16,511) - (1,382) - (17,893) Total Nonoperating Revenues (Expenses) 40,401 194,325 30,956 22,613 288,295 Income (Loss) Before Transfers 126,260 236,768 (16,644) 91,643 438,027 Transfers in 145,208 - 282,195 100,000 527,403 Total Transfers 145,208 - 282,195 100,000 527,403 Changes in Net Position 271,468 236,768 265,551 191,643 965,430 Net Position:

Beginning of Year 1,827,607 1,648,933 569,731 322,396 4,368,667 End of Year 2,099,075 $ 1,885,701 $ 835,282 $ 514,039 $ 5,334,097 $

City of Imperial Beach
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2025
-105-
Vehicle Facilities
Replacement & Self- Technology & Repair &
Maintenance Insurance Communication Maintenance Total
Cash Flows from Operating Activities:

Cash received from/(paid to) interfund service provided 772,964 $ 992,187 $ 982,800 $ 150,100 $ 2,898,051 $ Cash paid to suppliers for goods and services (232,863) (916,956) (558,903) (15,767) (1,724,489) Cash paid to employees for services (263,250) (132,753) (439,520) - (835,523) Net Cash Provided (Used) by Operating Activities 276,851 (57,522) (15,623) 134,333 338,039 Cash Flows from Non-Capital Financing Activities:

Cost reimbursements - 101,236 - - 101,236 Transfers from other funds 145,208 - 282,195 100,000 527,403 Net Cash Provided by Non-Capital Financing Activities 145,208 101,236 282,195 100,000 628,639 Cash Flows from Capital and Related Financing Activities:

Principal Paid on subscription lease (96,235) - (78,714) - (174,949) Interest paid on subscription lease (16,511) - (1,382) - (17,893) Acquisition and construction of capital assets (134,946) - (7,676) - (142,622) Net Cash Used by Capital and Related Financing Activities (247,692) - (87,772) - (335,464) Cash Flows from Investing Activities:

Investment income 56,912 93,089 32,338 22,613 204,952 Net Cash Provided by Investing Activities 56,912 93,089 32,338 22,613 204,952 Net Increase in Cash and Cash Equivalents 136,803 231,279 211,138 256,946 836,166 Cash and Cash Equivalents, Beginning of Year 1,024,000 2,093,455 598,614 279,263 3,995,332 Cash and Cash Equivalents, End of Year 1,255,279 $ 2,230,258 $ 809,752 $ 536,209 $ 4,831,498 $ Reconciliation of Operating Income (Loss) to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) 85,859 $ 42,443 $ (47,600) $ 69,030 $ 149,732 $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation/amortization 93,744 - 115,291 11,755 220,790 Miscellaneous change on subscription - - (111,255) - (111,255) (Increase) decrease in accounts receivable - (1,413) - - (1,413) (Increase) decrease in prepaid costs - - 23,198 - 23,198 (Increase) decrease in due from other governments 11,519 - - - 11,519 (Increase) decrease in deferred outflows - pension 36,623 22,836 23,267 - 82,726 (Increase) decrease in deferred outflows - OPEB 1,068 666 678 - 2,412 Increase (decrease) in accounts payable 102,941 (5,111) (11,138) 53,548 140,240 Increase (decrease) in accrued liabilities (1,721) 459 8,146 - 6,884 Increase (decrease) in compensated absences 3,937 2,214 20,077 - 26,228 Increase (decrease) in claims and judgments - (84,000) - - (84,000) Increase (decrease) in net pension liability (50,128) (31,256) (31,846) - (113,230) Increase (decrease) in net OPEB liability 742 462 472 - 1,676 Increase (decrease) in deferred inflows - pension (6,984) (4,355) (4,437) - (15,776) Increase (decrease) in deferred inflows - OPEB (749) (467) (476) - (1,692) Total Adjustments 190,992 (99,965) 31,977 65,303 188,307 Net Cash Provided (Used) by Operating Activities 276,851 $ (57,522) $ (15,623) $ 134,333 $ 338,039 $

City of Imperial Beach
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
-106-
Special Assessment Districts
Assessment Assessment Assessment
District #63 District #64 District #66
Assets:

Pooled cash and investments 131,505 $ 33,517 $ 189,641 $ Total Assets 131,505 33,517 189,641 Net Position:

Held in trust for other purposes 131,505 33,517 189,641 Total Net Position 131,505 $ 33,517 $ 189,641 $

City of Imperial Beach
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2025
-107-
Special Assessment Districts
Custodial
Assessment Assessment Funds
District #68 District #71 Total
Assets:

Pooled cash and investments 112,670 $ 18,127 $ 485,460 $ Total Assets 112,670 18,127 485,460 Net Position:

Held in trust for other purposes 112,670 18,127 485,460 Total Net Position 112,670 $ 18,127 $ 485,460 $

City of Imperial Beach
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2025
-108-
Special Assessment Districts
Assessment Assessment Assessment
District #63 District #64 District #66
Additions:

Interest and change in fair value of investments 5,170 $ 1,318 $ 7,455 $ Total Additions 5,170 1,318 7,455 Changes in Net Position 1,318 5,170 7,455 Net Position at Beginning of Year 126,335 32,199 182,186 Net Position at End of Year 131,505 $ 33,517 $ 189,641 $

City of Imperial Beach
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
Year Ended June 30, 2025
-109-
Special Assessment Districts
Custodial
Assessment Assessment Funds
District #68 District #71 Total
Additions:

Interest and change in fair value of investments 4,429 $ 713 $ 19,085 $ Total Additions 4,429 713 19,085 Changes in Net Position 713 4,429 19,085 Net Position at Beginning of Year 108,241 17,414 466,375 Net Position at End of Year 112,670 $ 18,127 $ 485,460 $

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Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
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REPORT ON COMPLIANCE WITH APPLICABLE REQUIREMENT AND ON INTERNAL

CONTROL OVER COMPLIANCE
Independent Auditor’s Report
To the Honorable City Council
City of Imperial Beach, California
Report on Compliance for the Housing Successor
Opinion
We have audited the City of Imperial Beach Housing Successor’s compliance with the type of compliance requirements described in the California Health and Safety Code sections applicable to California Housing Successor Agencies for the year ending June 30, 2025.

In our opinion, the Housing Successor complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its Housing Successor for the year ending June 30, 2025.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS), the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), and the audit guidelines issued by the California State Controller’s Office. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the compliance section of our report.

We are required to be independent of the City of Imperial Beach Housing Successor and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the Housing Successor. However, our audit does not provide a legal determination of the Housing Successor’s compliance with those requirements.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City of Imperial Beach Housing Successor’s general programs.

ATTACHMENT 2

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Auditor’s Responsibility for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City of Imperial Beach Housing Successor’s compliance based on our audit. 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, Government Auditing Standards, and the audit guidelines issued by the California State Controller’s Office 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. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City of Imperial Beach Housing Successor’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the audit guidelines issued by the California State Controller’s Office, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material noncompliance, 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 City of Imperial Beach Housing Successor’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City of Imperial Beach Housing Successor’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with GAAS, Government Auditing Standards, and the audit guidelines issued by the California State Controller’s Office, but not for the purpose of expressing an opinion on the effectiveness of the City of Imperial Beach Housing Successor’s internal control over compliance. Accordingly, no such opinion is expressed.

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.

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Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibility for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of California Health and Safety Code sections applicable to California Housing Successor Agencies. Accordingly, this report is not suitable for any other purpose.

Report on Excess/Surplus Calculation
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 Imperial Beach as of the year ended June 30, 2025, and have issued our report thereon dated November 7, 2025, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements as a whole.

The accompanying report on excess/surplus calculation is presented for purposes of additional analysis only and is not a required part of the financial statements. Such information is the responsibility of management and was derived from the financial statements. The report on excess/surplus calculation has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance.

San Bernardino, California
November 7, 2025

City of Imperial Beach
Computation of Housing Successor Excess/Surplus (HSC 34176.1) For the year ended June 30, 2025
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Opening Fund Balance, as restated 925,451 $ 1,105,152 $ Available Low & Mod Funds 925,451 1,105,152
Limitation (Greater of $1,000,000 or four years of deposits) Aggregate amount deposited for last four years:
2024-2025 - $ 198,022 $
2023-2024 103,957 103,957
2022-2023 135,808 135,808
2021-2022 49,102 49,102
2020-2021 31,606 31,606
Total Amounts Deposited for Last 4 Years 320,473 518,495 Base Limitation 1,000,000 1,000,000
Greater Amount 1,000,000 1,000,000
Computed Excess Surplus - $ 105,152 $
Low & Moderate
Hosing Funds
All Project Area
July 1, 2024
Low & Moderate
Housing Funds
All Project Area
July 1, 2025
Please note: In accordance with HSC34176.1(d), if a housing successor has an excess surplus, the housing successor shall encumber the excess surplus for the purposes described in paragraph (3) of subdivision (a) or transfer the funds pursuant to paragraph (2) of subdivision (c) within three fiscal years. If the housing successor fails to comply with this subdivision, the housing successor, within 90 days of the end of the third fiscal year, shall transfer any excess surplus to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program. For purposes of this subdivision, "excess surplus" shall mean an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the housing successor's preceding four fiscal years, whichever is greater.

ANNUAL HOUSING SUCCESSOR PROGRESS REPORT
HOUSING AUTHORITY OF THE CITY OF IMPERIAL BEACH – SUCCESSOR HOUSING ENTITY Specified Activity Information in Accordance with HSC Section 34176.1 (f) Year End June 30, 2025
The Imperial Beach Housing Authority serves as the housing successor (Housing Successor) of the former Imperial Beach Redevelopment Agency (Former RDA) designated under state laws governing dissolution of former redevelopment agencies set forth in Health and Safety Code (HSC) Sections 34161 through 34191.6 (referred to herein as the Dissolution Law).

The Dissolution Law imposes detailed reporting requirements on the Housing Successor. Specifically, HSC Section 34176.1(f) provides that the reporting requirements set forth in HSC Section 33080.1 and Government Code Section 12463.3 that previously applied to the Former RDA for affordable housing purposes no longer apply. Instead, the Housing Successor must conduct, and provide to its governing body (i.e. Board of Commissioners of the Housing Authority), an independent financial audit of the Low and Moderate Income Housing Asset Fund within six (6) months after the end of each fiscal year. Such audit may be included in the independent financial audit of the City. In addition, because the Housing Successor is not the City, the Housing Successor must provide to its governing body (i.e. the Board of Commissioners of the Housing Authority) and post on its Internet Website all of the following information for the previous fiscal year:

1. The amount the City received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4. [HSC Section 34176.1(f)(1)]
SA Loan Repayment completed in FY2025 $ 0

2. The amount deposited to the Low and Moderate Income Housing Asset Fund, distinguishing between amounts deposited pursuant to subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of Section 34191.4 , amounts deposited for other items listed on the Recognized Obligation Payment Schedule, and other amounts deposited. [HSC Section 34176.1(f)(2)] Interest and other $ 198,022
Recognized Obligation Payment Schedule amounts $ 0
Other amounts (20% of SA Loan Repayment; above) $ 0
TOTAL $ 198,022

3. A statement of the balance in the Low and Moderate Income Housing Asset Fund as of the close of the fiscal year, distinguishing any amounts held for items listed on the Recognized Obligation Payment Schedule from other amounts. [HSC Section 34176.1(f)(3)] Recognized Obligation Payment Schedule amounts $ 0
Other amounts (including SA Loan Repayment) $ 1,105,152 TOTAL $ 1,105,152
ATTACHMENT 3

Annual Housing Successor Progress Report
Year End June 30, 2025

4. A description of expenditures from the fund by category, including, but not limited to, expenditures (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the Former RDA or the Housing Successor and administering the activities described in paragraphs (2) and (3) of subdivision (a) of HSC Section 34176.1, (B) for homeless prevention and rapid rehousing services for the development of housing described in paragraph (2) of subdivision (a) of HSC Section 34176.1, and (C) for the development of housing pursuant to paragraph (3) of subdivision (a) of HSC Section 34176.1. [HSC Section 34176.1(f)(4)]
(A) Monitoring/preserving $ 18,321
(B) Homeless prevention/rapid rehousing $ 0
(C) Housing development $ 0
TOTAL $ 18,321

5. As described in paragraph (1) of subdivision (a) of HSC Section 34176.1, the statutory value of real property owned by the Housing Successor, the value of loans and grants receivable, and the sum of these two amounts. [HSC Section 34176.1(f)(5)] Assets held for disposition $ 0
Loans receivable $ 10,955,508
TOTAL $ 10,955,508

6. A description of any transfers made pursuant to paragraph (2) of subdivision (c) of HSC Section 34176.1 in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service. [HSC Section 34176.1(f)(6)] Not applicable. No Low and Moderate Income Housing Asset Fund monies were transferred during the fiscal year between the Housing Authority and other housing successors that are located within the County of San Diego or in contiguous jurisdiction.

7. A description of any project that the Housing Successor receives or holds property tax revenue pursuant to the Recognized Obligation Payment Schedule and the status of that project. [HSC Section 34176.1(f)(7)]
Not applicable.

8. For interests in real property acquired by the Former RDA before February 1, 2012, a status update on compliance with HSC Section 33334.16. For interests in real property acquired by the Housing Successor on or after February 1, 2012, a status update on the project. [HSC Section 34176.1(f)(8)]
Not applicable.

Annual Housing Successor Progress Report
Year End June 30, 2025

9. A description of any outstanding obligations pursuant to HSC Section 33413 that remained to transfer to the Housing Successor on February 1, 2012, of the Housing Successor's progress in meeting those obligations, and of the Housing Successor's plans to meet unmet obligations. In addition, the Housing Successor shall include in the report posted on its Internet Web site the implementation plans of the Former RDA. [HSC Section 34176.1(f)(9)] Not applicable.

10. The information required by subparagraph (B) of paragraph (3) of subdivision (a) of HSC Section 34176.1. [HSC Section 34176.1(f)(10)]
Not applicable.

11. The percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its Former RDA, and the City within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its Former RDA, and the City within the same time period. [HSC Section 34176.1(f)(11)] Not applicable.

12. The amount of any excess surplus, the amount of time that the Housing Successor has had excess surplus, and the Housing Successor's plan for eliminating the excess surplus. [HSC Section 34176.1(f)(12)]
The Housing Successor had $105,152 in funds exceeding $1 million as of June 30, 2025. The City is currently working on a forgivable loan for the development of affordable housing units.

Additional details about this project are included in Item 14 of this report. These funds are expected to be expended within the next three fiscal years, by June 30, 2028, pursuant to HSC Section 34176.1(d).

13. An inventory of homeownership units assisted by the Former RDA or the Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the Former RDA's investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of HSC Section 33334.3. The inventory shall include all of the following information (A) the number of those units, (B) the number of the units lost to the portfolio in the last fiscal year and the reason for those losses, (C) any funds returned to the Housing Successor as part of an adopted program that protects the Former RDA’s investment of moneys from the Low and Moderate Income Housing Fund, and (D) whether the Housing Successor has contracted with any outside entity for the management of the units and, if so, the identity of the entity. [HSC Section 34176.1(f)(13)]

Annual Housing Successor Progress Report
Year End June 30, 2025

Project Name Number of
Units
Units
Lost
Funds
Returned
Contracted
Management by
Developer
Beachwind Court – 624
12th Street
15 None None Beachwind Court LP
Southbay Community
Services – 1260 Calla Ave
8 None None Southbay Community
Services
Southbay Community
Services – 1360 Hemlock
7 None None Southbay Community
Services
American Legion – 1268
Palm Avenue
30 None None American Legion
Habitat for Humanity –
10th and Donax
6 None None Habitat for Humanity

14. In the annual report prepared in 2019 and every five (5) years thereafter (which includes the annual report for 2024), the Housing Successor must demonstrate that the Housing Successor’s expenditures, from January 1, 2014 through the end of the latest fiscal year covered in the annual report, comply with the requirements of subparagraph (A) of subsection (3) of subsection (a) of HSC Section 34176.1, which states in pertinent part: “The housing successor shall expend all funds remaining in the Low and Moderate Income Housing Asset Fund after the expenditures allowed pursuant to paragraphs (1) and (2) for the development of housing affordable to and occupied by households earning 80 percent or less of the area median income, with at least 30 percent of these remaining funds expended for the development of rental housing affordable to and occupied by households earning 30 percent or less of the area median income and no more than 20 percent of these remaining funds expended for the development of housing affordable to and occupied by households earning between 60 percent and 80 percent of the area median income.” [HSC Section 34176.1(a)(3)(A)] The Low and Moderate Income Housing Asset Fund has had minimal expense activity since January 1, 2014. The expenses that have been incurred pertain to professional services related to the Projects listed under #13 above and to legal services and other professional services related to a new proposed affordable housing project recently approved by the City Council and the Housing Successor on November 6, 2024. For informational purposes only, this new project involves the development of a new 50-unit affordable senior housing and neighborhood center project at 455 Palm Ave., Imperial Beach, CA, providing for fifty (50) dwelling units serving Extremely Low Income, Very Low Income, and Low Income Senior Citizen Households. At the future close of escrow, and subject to satisfaction of conditions precedent, the Housing Successor intends on providing the developer with a construction to permanent phase loan of Low and Moderate Income Housing Asset Funds in the amount of $625,000 to assist developer with acquisition and construction costs of the project.

ATTACHMENT 4
RESOLUTION NO. 2025-059

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IMPERIAL BEACH, CALIFORNIA,

AUTHORIZING THE ALLOCATION OF FUND BALANCE AND AUTHORIZING NECESSARY

ASSIGNMENTS, TRANSFERS, AND BUDGET AMENDMENTS
WHEREAS, the City Council has a fiduciary responsibility to maintain fund balance reserves and allocate adequate funding to protect and plan for the City’s future; and WHEREAS, the City Council has adopted City Council Policy 420, Fund Balance Reserve Policy that identifies provisions of the fund balance standards for the City of Imperial Beach; and WHEREAS, City Council Policy 420 sets a minimum Unassigned Fund Balance of 30% of the annual General Fund expenditures; and
WHEREAS, as of June 30, 2025, the General Fund Unassigned Fund Balance was $14,372,157, which is approximately 47.1% of Fiscal Year 2024-2025 General Fund expenditures.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Imperial Beach as follows:

1. The above-listed findings are true and correct.

2. The City Council authorizes the following uses/allocations of General Fund Unassigned Fund Balance:
a) Contribute $1,000,000 to CalPERS towards the City’s unfunded pension actuarial liability
b) Contribute $250,000 to PARS Sec 115 trust fund ($200,000 for pension, and for $50,000 OPEB obligations)
c) Contribute $550,000 to Public Works Strategic Reserve

3. The City Council hereby authorizes the Finance Director to make the necessary amendments.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Imperial Beach at its meeting held on the 3
rd day of December 2025, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

MITCHELL D. MCKAY,
MAYOR
ATTEST:

JACQUELINE M. KELLY, MMC

CITY CLERK

P a g e | 1
December 3, 2025
ITEM TITLE: DESIGNATION OF MAYORAL AND CITY COUNCIL ASSIGNMENTS REQUIRING ELECTED OFFICIAL REPRESENTATION FOR 2026 (0410-50).

ORIGINATING DEPARTMENT:

City Clerk
EXECUTIVE SUMMARY:

In accordance with the Imperial Beach Municipal Code, the Mayor will represent the City in all regional public agencies which require an elected official unless otherwise determined by the City Council. Each year, the Mayor, in consultation with members of the City Council, reviews the need for representation by elected officials for various intergovernmental and other regional organizations. The Mayor and assigned Councilmembers attend the various meetings, seek input on key issues, and report relevant information to the full membership of the City Council at regular meetings of the City Council. The Mayor has communicated with members of the City Council and staff has prepared a list of the proposed assignments for consideration.

RECOMMENDATION:

Staff recommends that the City Council consider the proposal of the Mayor for City Council assignments for 2026.

OPTIONS:
 Approve the proposal of the Mayor for City Council assignments for 2026.  Discuss alternative assignments and approval modifications to the proposal.  Request additional information and an additional report (this action could impact representation at one or more of the regional organizations until the assignment is complete).

BACKGROUND/ANALYSIS:

In accordance with Section 2.08.030.D of the IBMC, the Mayor will “represent the City in all regional public agencies which require an elected City Official, unless otherwise determined by the City Council.” Each year the assignment list is reviewed by the Mayor, and in consultation with the members of the City Council, the assignments are designated. Considerations include availability of time, expertise with the subject matter, personal interests, and similar concerns.

Mayor McKay has proposed City Council assignments as indicated on Attachment 1. Approval of the 2026 City Council assignments will allow the intergovernmental, regional and local organizations to prepare for their regular meetings and other business.

ENVIRONMENTAL DETERMINATION:

Not a project as defined by CEQA.

P a g e | 2
FISCAL IMPACT:

There is no fiscal impact associated with this report.

ATTACHMENTS:

ATT 1 - City Council Representation Assignments for 2026_DRAFT

2026 CITY OF IMPERIAL BEACH

CITY COUNCIL REPRESENTATION ASSIGNMENTS
To be considered by City Council on 12/03/2025 Page 1 of 2 SOUTH BAY MAYORS AND CITY MANAGERS COMMITTEE:

National City, Chula Vista, Coronado, and San Diego meet to discuss mutual concerns relating to South Bay.

Primary - Mayor McKay
1 st Alternate – Mayor Pro Tem Seabury Fisher*
Contact: Justine Talavera, Executive Assistant for Mayor & City Council
276 Fourth Avenue
Chula Vista, CA 91910
[email protected] (619) 691-5044
Location: Location rotates between the four cities.

Meetings: Quarterly by the host city at 12:00 p.m. on the third Monday of the month.

SD DIVISION, CAL CITIES:

A coalition of California cities meeting on issues of statewide concern.

Primary – Mayor McKay
1 st Alternate – Mayor Pro Tem SeaburyCouncilmember Nakawatase Contact: Catherine Hill, Regional Public Affairs Manager San Diego Imperial Division
Cal Cities
PO Box 82081
San Diego, CA 92138-2081
(619) 733-1751
[email protected]
Location: Four Points Sheraton
8110 Aero Drive
San Diego, CA 92123
Meetings: Dates TBD
SD DIVISION, CAL CITIES – LEGISLATIVE SUB-COMMITTEE:

A coalition of San Diego County cities that reviews and provides direction to the San Diego Division membership on bills pending before the Legislature.

Primary – Mayor McKay
1 st Alternate – Mayor Pro Tem Councilmember Seabury
Contact: Catherine Hill, Regional Public Affairs Manager San Diego Imperial Division
Cal Cities
PO Box 82081
San Diego, CA 92138-2081
(619) 733-1751
[email protected]
Location: Four Points Sheraton
8110 Aero Drive
San Diego, CA 92123
Meetings: Not meeting regularly but on call of the Division President periodically.

CAL CITIES - COASTAL CITIES INTEREST GROUP
A coalition of California cities meeting on statewide coastal issues.

Primary – Mayor McKay
1 st Alternate – Mayor Pro Tem Councilmember Seabury
Contact: Melissa Sparks-Kranz, Legislative Affairs, Lobbyist Cal Cities
1400 K Street, 4th Floor
Sacramento, CA 95814
[email protected]
(916) 658-8232
Location: TBD - Conference calls and virtual meetings;
periodic in person meetings at conferences.

Meetings: TBD
METROPOLITAN TRANSIT SYSTEMS BOARD: Public transportation issues.

Primary – Councilmember Leyba-Gonzalez
1 st Alternate – Mayor McKayCouncilmember Nakawatase
Contact: Lucia Mansour, Executive Assistant and Clerk of the Board
O: (619) 398-9561 C: (619) 791-5760
[email protected]
Location: 1255 Imperial Ave., Ste. 1000
San Diego, CA 92101-7490
Meetings: The Board of Directors meetings generally occur on the 1st and 2nd Thursdays of each month at 9:00
a.m. $150/meeting
SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) BOARD:

The regional council of governments, which fosters cooperation on solving regional issues, such as transportation.

Primary – Councilmember Mayor Pro Tem Fisher*
1 st Alternate – Mayor McKay
2 nd Alternate – Councilmember Leyba-Gonzalez
Contact: Francesca Webb, Clerk of the Board
O: (619) 699-1985 (C): (619) 977-9294
[email protected]
Location: 401 B Street, Ste. 800
San Diego, CA 92101
FAX: (619) 699-1995
Meetings: 2nd Friday of each month at 10:00 a.m. and 4th Friday of each month from 9:00 a.m. to 12:00 p.m.
(Except Nov and Dec which is on the 1st and 3rd
Fridays due to holiday schedule).
$150 Board meeting/$100 Regional Transportation Commission – held simultaneously with the SANDAG Board.
$100 Policy Advisory Committee (Appointments made by each sub-region) $100 meetings attended on behalf of SANDAG within San Diego County and $150 meetings attended on behalf of SANDAG outside San Diego County including per diem
ATTACHMENT 1

2026 CITY OF IMPERIAL BEACH

CITY COUNCIL REPRESENTATION ASSIGNMENTS
To be considered by City Council on 12/03/2025 Page 2 of 2 SANDAG – SHORELINE PRESERVATION WORKING GROUP:

To advise SANDAG on issues related to the adopted Shoreline Preservation Strategy and opportunities for beach replenishment.

Primary – Mayor Pro Tem SeaburyCouncilmember Nakawatase 1 st Alternate – Vacant Councilmember Seabury
Contact: Courtney Becker
(619) 699-6942
[email protected]
Location: 401 B Street, Ste. 800
San Diego, CA 92101
Meetings: Generally, meets quarterly on the first Thursday of the month from 11:30 a.m. to 1:30 p.m.

CHAMBER OF COMMERCE LIAISON:

Primary – Mayor McKay Councilmember Seabury
1 st Alternate – Mayor Pro Tem Seabury Mayor McKay
Contact: Sandi Crosby, President
[email protected]
Location: 925 Seacoast Drive
Imperial Beach, CA 91932
Meetings: 4th Tuesday of each month at 6:00 p.m. except November & December
METRO WASTEWATER COMMISSION/JPA:

Oversees the sewage system for the San Diego area and makes decisions regarding financial expenditures relating to the sewage system. Representative also serves on SANDIST (San Diego Area Wastewater Management District).

Primary – Mayor McKay
Alternate – Councilmember Mayor Pro Tem Fisher*
Contact: Lori Anne Peoples, Secretary to Metro JPA
(619) 548-2934 (cell) [email protected]
Location: 9192 Topaz Way (PUD MOC II) Auditorium, San
Diego, CA Mailing address P.O. Box 1072,
National City, CA 91951
Meetings: 1st Thursday of each month 12:00 p.m. - 1:30 p.m. $175/meeting
JOB CORPS LIAISON: Community Relations Council
Primary – Councilmember Leyba-Gonzalez
Alternate – Councilmember Mayor Pro Tem Fisher*
Contact: Reyna Delgadillo, Center Director
(619) 429-2300
[email protected]
Location: 1325 Iris Ave., Building 60
Imperial Beach, CA 91932
Meetings: Once every quarter (notified in advance) at 11:30 a.m.

SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL (SCEDC):

To encourage private investment in the South San Diego County region as well as to promote the cultural, educational, social, and geographic opportunities of the area.

Primary – Mayor Pro Tem SeaburyCouncilmember Nakawatase 1st Alternate – Mayor McKayCouncilmember Seabury
Contact: James O'Callaghan, President & CEO
(619) 424-5143
[email protected]
South County Economic Development Council
710 E. 16th Street #472
National City, CA 91951
Location: Pacific Southwest Association of Realtors
880 Canarios Ct.. #100
Chula Vista, CA 91910
Meetings: 1st Tuesday of each month
Networking - 7:30 a.m., Meeting – 8:00 a.m.

SAN DIEGO COMMUNITY POWER JPA:

To purchase power for the JPA communities that is price competitive and with a larger percentage of the power generated from renewable resource.

Primary – Councilmember Mayor Pro Tem Fisher*
1st Alternate – Mayor McKay
Contact: Maricela (Mari) Hernandez, Clerk of the Board
(619) 732-0035
[email protected]
PO Box 12716
San Diego, CA 92112
Location: Don L. Nay Port Administration Boardroom
3165 Pacific Highway
San Diego, CA 92101
Meetings: 4th Thursday of every month at 5:00 p.m.
$300 per day; Per diem compensation is limited to
four (4) payments/month, or up to six (6) if serving
on multiple Community Power boards,
committees, or working groups
Cannabis Regulations Ad Hoc Sub-Committee
Councilmember Leyba Gonzalez
Mayor Pro Tem Councilmember Seabury
*The Mayor Pro Tem Rotation will take place at the
January 21, 2026 City Council Meeting