050322-C-7sr&att.pdf — Long Beach City Council, May 3, 2022 (part 1 of 3)

CITY OF
LONG
May 3, 2022

HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:

Department of Financial Management
411 W. Ocean Blvd,, 6th Floor
Long Beach, CA 90802
562-570-6425
C-7
Receive and file the Annual Comprehensive Financial Report (ACFR) and Separately Issued Financial Statements for the Fiscal Year Ended September 30, 2021. (Citywide)

DISCUSSION
Annual Comprehensive Financial Report
The Annual Comprehensive Financial Report (ACFR), prepared by the Financial Management Department, contains audited financial information on all City of Long Beach (City) funds for the fiscal year ended September 30, 2021 (FY 21) in accordance with generally accepted accounting principles. In accordance with Section 302(e) of the City Charter, the ACFR is submitted annually to the City Council. It is important to note that the ACFR is designed to report historical financial information only and is not designed to report financial projections or budgetary priorities.

We are pleased to report that the Independent Auditor's Report concluded that the City's financial statements present fairly, in all material respects, the financial position of the City and its related cash flow and budgetary information. The audit was conducted by KPMG, LLP, a certified public accounting firm, under contract with the City Auditor.

The ACFR provides Basic Financial Statements that combine all City assets and liabilities in one consolidated statement. The City's total net position, as shown on page 25 of the ACFR, was $5.8 billion as of September 30, 2021. Of this amount, $272 million was recorded in governmental activities and $5.5 billion was recorded in enterprise funds such as the Harbor Fund, Water Utility Fund, and Tidelands Operating Fund. Total net position increased by $431.9 million from FY 20.

Separately Issued Financial Reports and Statements
In addition to the ACFR, certain City funds are also required to submit audited annual financial statements separately, including the Harbor and Water Departments. These separate reports are attached and are issued annually to meet distinct legal and financial requirements. Also provided is the ACFR for Long Beach Transit, a discretely presented component unit of the City.

HONORABLE MAYOR AND CITY COUNCIL
May 3, 2022

Page 2 ends

Finally, because of the professionalism and dedication of the Financial Management, Harbor, and Water Departments, as well as finance professionals throughout the City, the ACFR and the separately issued financial reports of the Harbor and Water Departments have been awarded the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for their FY 20 annual financial reports.

The receipt of the Certificate of Achievement attests to the City's desire to be fully accountable to our residents. In addition, this recognition can be viewed as a positive factor by credit rating agencies.

This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley and Revenue Management Officer Geraldine Alejo on April 11, 2022.

TIMING CONSIDERATIONS
City Council action on this item is not time critical.

FISCAL IMPACT
There is no fiscal or local job impact associated with this recommendation. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities.

SUGGESTED ACTION:

Approve recommendation.

Respectfully submitted,
J<~ ~~

KEVIN RIPER

DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:

THOMAS B. MODICA

CITY MANAGER
ATTACHMENTS: A-CITY OF LONG BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT

B - HARBOR DEPARTMENT ANNUAL COMPREHENSIVE FINANCIAL REPORT

C- LONG BEACH WATER DEPARTMENT ANNUAL COMPREHENSIVE FINANCIAL REPORT

D - LONG BEACH TRANSIT ANNUAL COMPREHENSIVE FINANCIAL REPORT The notes to the basic financial statements are an integral part of this statement.

I
City of Long Beach
California
Annual Comprehensive
Financial Report
Fiscal Year Ended September 30, 2021
Attachment A

Intentionally Left Blank

AAnnnnuuaall

CCoommpprreehheennssiivvee
FFiinnaanncciiaall RReeppoorrtt
City of Long Beach, California
For the Fiscal Year Ended
September 30, 2021
Prepared by the Department of
Financial Management
Kevin Riper, Director

Intentionally Left Blank
Administrative Analyst
Nazanin Hamidi
Accountant
Tiffany PierceElaine Harmon
Accounting Technician
Accounting Technician
Senior Accountant Senior Accountant
Toulip Torn
Claudia Buenrostro
Accounting Management Officer
Sarah Castillo-Wright
Grants Accounting Officer
Glenda Pakingan
Accounting Operations Officer
Senior Accountant
Reuben Belleza
Accounting Technician
Jackie Pham
Accounting Technician
Phuong Pham
Angie Tran Michael Carrigg
Insert Photography by Liezl Estipona
Jennifer Mota
Ruby Carrillo-Quincey
City Controller
Accountant
Shelby Miller
Kalpna Desai
Senior Accountant
Assistant City Controller
City of Long Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2021
Prepared by the Department of Financial Management
Stefannie Kodrat
Kevin Riper
Director of Financial Management
Francine Wiegelman
Elsa Castaneda
Administrative Analyst
Assistant City Controller
Accountant Accountant
Mai-Ly Nguyen
Accountant
Kim-Hang Nguyen
Assistant City Treasurer
Cassandra Tan
Cover Photography by Liezl Estipona
Alex Powers
Georgia Will
Senior Accountant Senior Accountant
Khanh Do
Accountant
Administrative Analyst
Nazanin Hamidi
Accountant
Tiffany PierceElaine Harmon
Accounting Technician
Accounting Technician
Senior Accountant Senior Accountant
Toulip Torn
Claudia Buenrostro
Accounting Management Officer
Sarah Castillo-Wright
Grants Accounting Officer
Glenda Pakingan
Accounting Operations Officer
Senior Accountant
Reuben Belleza
Accounting Technician
Jackie Pham
Accounting Technician
Phuong Pham
Angie Tran Michael Carrigg
Insert Photography by Liezl Estipona
Jennifer Mota
Ruby Carrillo-Quincey
City Controller
Accountant
Shelby Miller
Kalpna Desai
Senior Accountant
Assistant City Controller
City of Long Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2021
Prepared by the Department of Financial Management
Stefannie Kodrat
Kevin Riper
Director of Financial Management
Francine Wiegelman
Elsa Castaneda
Administrative Analyst
Assistant City Controller
Accountant Accountant
Mai-Ly Nguyen
Accountant
Kim-Hang Nguyen
Assistant City Treasurer
Cassandra Tan
Cover Photography by Liezl Estipona
Alex Powers
Georgia Will
Senior Accountant Senior Accountant
Khanh Do
Accountant

Intentionally Left Blank

i
City of Long Beach
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2021

TABLE OF CONTENTS

INTRODUCTORY SECTION Page
Letter of Transmittal…………………………………………………………………………………………………………...... iii Directory of City Officials………………………………………………………………………………………….………... ix Organizational Chart……………………………………………………………………………………………………………. xi Certificate of Achievement for Excellence in Financial Reporting………………………………………..… …. ..................... xii

FINANCIAL SECTION
Independent Aud itors’ Report ................................................................................................. .................................................... 1 Management’s Discussion and Analysis – Requ ired Supplementary Information (Unaudited) .................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position .................................................................................................. ................................................... 25 Statement of Activities .................................................................................................... ..................................................... 26 Fund Financial Statements:

Governmental F unds, Balance Sheet .................................................................................................................................... 28 Reconciliation of the Governmental Funds Balance Sheet to Governmental Activities in the Statement of Net Position ... 29 Governmental Funds, Statement of Revenues, Expe nditures, and Changes in Fund Balances ........................................... 30 Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................................................................................ 31 General Fund, Statement of Revenues, Expenditu res, and Changes in Fund Balances – Budget and Actual ( Budgetary Basis) .............................................................................................. ........................................... 32 Housing Assistance Fund, Statement of Revenues, Ex penditures, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) .............................................................................................. ........................................... 33 Proprietary Funds, Statement of Net Position (Deficit) ........................................................................................................ 34 Proprietary Funds, Statement of Revenues, Expens es, and Changes in Fund Net Position (Deficit) ................................... 38 Proprietary Funds, St atement of Cash Flows ................................................................................. ...................................... 40 Fiduciary Funds, Statemen t of Fiduciary Net Position ......................................................................................................... 44 Fiduciary Funds, Statement of Changes in Fiduciary Net Position ............................................................ .......................... 44 Notes to the Basic Financial Statements:

Note 1 – Re porting Entity ................................................................................................... ........................................... 45 Note 2 – Summary of Sign ificant Accounting Policies .................................................................................................. 47 Note 3 – Reconciliation of Governmen t-wide and Fund Financial Statements .............................................................. 57 Note 4 – Cash and Investments ................................................................................................ ...................................... 60 Note 5 – R eceivables ......................................................................................................... ............................................ 64 Note 6 – Interfund Receivables, Payables, and Transfers ...................................................................... ........................ 65 Note 7 – Ca pital Assets .................................................................................................................................................. 68 Note 8 – Change in Long-Term Liabilities .................................................................................................................... 70 Note 9 – B onds Payable ...................................................................................................... ........................................... 71 Note 10 – Notes, Loans Payable, and Other Long-Term Obligations .............................................................................. 77 Note 11 – Leasing Arrangements............................................................................................... ...................................... 82 Note 12 – Derivati ve Instruments .............................................................................................. ...................................... 86 Note 13 – Retirement Programs ................................................................................................ ....................................... 89 Note 14 – Postemployment Healthcare Benefits .............................................................................................................. 94 Note 15 – Self-Insurance Programs ........................................................................................... ...................................... 96 Note 16 – Governmental Fund Balances and Fund Deficits ...................................................................... ...................... 97 Note 17 – Oil Field Abandonment Liability ................................................................................... ................................. 98 Note 18 – Pollution Remediation Obligations ................................................................................. ................................ 99 Note 19 – Investment in Joint Venture ....................................................................................... ................................... 101 Note 20 – Deferred Compensation .............................................................................................. ................................... 102 Note 21 – Gas Utility Fund .................................................................................................. .......................................... 102 Note 22 – Commitments and Contingencies ..................................................................................... ............................. 106 Note 23 – Deferred Outflows and Deferred Inflows of Resources ............................................................... ................. 108 Note 24 – Tax Abatements Subsequent Events .................................................................................. ........................... 110 Note 25 – Subsequent Events ........................................................................................................................................ 112 Required Supplementary Information (Unaudited):

CalPERS Schedules of Changes in Net Pension Liability – Mi scellaneous Plan .................................................................. 113 CalPERS Schedules of Contribut ions – Miscellaneous Plan ..................................................................... ........................... 114 CalPERS Schedules of Changes in Ne t Pension Liability – Safety Plan ......................................................... ..................... 115 CalPERS Schedules of Cont ributions – Safety Plan ............................................................................ ................................. 116 Schedule of Changes in Total OP EB Liability and Related Ratios ....................................................................................... 117

ii
Additional Financial Information Section:

Nonmajor Governmental Funds , Combining Balance Sheet ............................................................................................... 119 Nonmajor Governmental Funds, Combining Statement of` Re venues, Expenditures, and Changes in Fund Balances ....... 120 Nonmajor Special Revenue F unds, Combining Balance Sheet ............................................................................................. 122 Nonmajor Special Revenue Funds, Combini ng Statement of` Revenues, Expenditures, and Changes in Fund Balances …………………………………………………….…… ......................................................... 124 Nonmajor Special Revenue Funds, Sc hedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 126 Nonmajor Debt Service F unds, Combining Balance Sheet ................................................................................................... 136 Nonmajor Debt Service Funds, Combining Statement o f` Revenues, Expenditures, and Changes in Fund Balances………137 Nonmajor Debt Service Funds, Sche dule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 138 Nonmajor Capital Projects F unds, Combining Balance Sheet .............................................................................................. 142 Nonmajor Capital Projects Funds, Combining Statement of` Revenues, Expenditures, and Changes in Fund Balances …………………………………………………….…… ..................................................................................... 143 Nonmajor Capital Projects Funds, Sc hedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 144 Nonmajor Enterprise Funds, Combining Statement of Net Position ..................................................................................... 148 Nonmajor Enterprise Funds, Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................ 149 Nonmajor Enterprise Funds, Comb ining Statement of Cash Flows ...................................................................................... 150 Internal Service Funds, Combining Statement of Net Position (Deficit) ....................................................... ....................... 152 Internal Service Funds, Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) .......... 153 Internal Service Funds, Combin ing Statement of Cash Flows .............................................................................................. 154 Fiduciary Funds Custodial Funds, Combining Statement of Net Position ............................................................................ 156 Fiduciary Funds, Custodial Funds, Combini ng Statement of Changes in Net Position ............................................ ............ 156 Fiduciary Funds, Private Purpose Trust F unds, Combining Statement of Net Position ........................................................ 158 Fiduciary Funds, Private Purpos e Trust Funds, Combining Statement of Changes in Net Position .................................... 158 Other Supplementary Information:

General Fund – Comb ining Balance Sheet ...................................................................................... ..................................... 159 General Fund – Combining Schedule of` Revenues , Expenditures, and Changes in Fund Balances .................................... 160 General Fund – Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) ............................................................................................................................................. 161 Measure A, Schedule of Revenues, Expenditu res, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) .............................................................................................. ......................................... 162 General Capital Projects Fund, Sche dule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) .............................................................................................. ......................................... 163 Tidelands Operating Fund – Comb ining Schedule of Net Position ....................................................................................... 166 Tidelands Operating Fund – Combining Schedule of Re venues, Expenses, and Changes in Fund Net Position .................. 167 Tidelands Operating Fund – Comb ining Statement of Cash Flows ................................................................ ...................... 168 Fleet Services Fund – Combining Schedule of Net Position (Deficit) .................................................................................. 169 Fleet Services Fund – Combining Schedule of Revenues, Expenses, and Changes in Fund Net Position (Deficit) ............. 170 STATISTICAL SECTION (Unaudited)
Schedules of Financial Trends Information
Net Position by Com ponent – Last Ten Fiscal Years ......................................................................................................... 173 Change in Net Position – Last Ten Fiscal Years ............................................................................. ................................... 174 Fund Balances of Government al Funds – Last Ten Fiscal Years ....................................................................................... 176 Change in Fund Balances of Govern mental Funds – Last Ten Fiscal Years ...................................................................... 177 Governmental Funds Tax Revenues by Source – Last Ten Fiscal Years ........................................................ ................... 178 Schedules of Revenue Capacity Information
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .............................................. 179 Property Tax Rates – All Overlappi ng Governments – Last Ten Fiscal Years................................................................... 180 Principal Property Taxpayers – Cu rrent Year and Nine Fiscal Years Ago ......................................................................... 181 Property Tax Levies and Collec tions – Last Ten Fiscal Years ........................................................................................... 182 Schedules of Debt Capacity Information
Ratios of Outstanding Debt by T ype – Last Ten Fiscal Years ............................................................................................ 183 Ratio of General Bonded Debt Outs tanding – Last Ten Fiscal Years ............................................................. ................... 184 Schedule of Direct and Overlapping Debt .......................................................................................................................... 185 Legal Debt Margin Informa tion – Last Ten Fiscal Years ................................................................................................... 186 Pledged Revenue Coverage – Last Ten Fiscal Years ............................................................................ ............................. 187 Schedules of Demographic and Economic Information
Demographic Statistics – Last Ten Fiscal Years ............................................................................. ................................... 190 Principal Employers – Curr ent Year and Nine Years Ago ................................................................................................. 191 Schedules of Operating Information
Full-time Equivalent City Government Employees by Function – Last Ten Fiscal Years ................................................. 193 Operating Indicators by Function – Last Ten Fiscal Years .............................................................. .................................. 194 Capital Asset Statistics by Function – Last Ten Fiscal Years ............................................................................................. 196 Additional Financial Information Section:

INTRODUCTORY

SECTION
BLANK
iii

March 29, 2022

Honorable Mayor and City Council
City of Long Beach

We are pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of Long Beach (City) for the fiscal year ended September 30, 2021. Th is report was prepared in accordance with all the appropriate rules and guidelines and audited by KPMG LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the City’s financial statements are free of material misstate ment. As anticipated, the independent auditors concluded that there was a reasonable basis for rendering an unmodified opinion for this fiscal year.

The independent auditors’ report is presented as the first component of the financial section of this report.

This ACFR contains management’s representations concerning the City’s finances, is free of material misstatement, and management assumes full responsibility for the completeness and reliability of all the information presented. To provide a reasonable basis for making these representations, the City’s management has established a compre hensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for this report. As the cost of internal controls should not exceed the benefits derived from those controls, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement.

The Management’s Discussion and Analysis (MD&A) immediately fo llows the independent auditors report and provides a narrative overview and ana lysis of the basic financial statements. The MD&A was designed to complement this letter of transm ittal and the financial statements and should be read along with them.

Financial data for all funds of the City, as well as all its blended component units, are included within the ACFR. Blended component units are, though legally separate entities, in substance, part of the City’s operations. A discretely presented component unit, Long Beach Transit, is reported in a separate column in the combined financial statements to emphasize that it is legally separate from the City and to differentiate its financial position and results of operations from that of the City.

A specialized audit of City financial transactions, called the Single Audit, is separately required due to the City’s receipt and use of Federal funding . The unique standards governing Single Audit engagements require the independent auditor to report on the City’s fair presentation of the financial statements, and the City’s internal controls, and compliance with legal requirements, with a special emphasis on those involving federal awards. The Cit y’s separately issued Single Audit report will be available on the Financial Management Department’s webpage when completed.

Budgetary Controls

In accordance with the City Charter, the City Manager must submit the Proposed Budget to the Mayor no later than 90 days prior to the beginning of the fiscal year, or July 3. Then the Mayor must transmit Office of the City Manager
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6711 FAX (562) 570-7650

the Proposed Budget to the City Council no later than 60 days prior to the beginning of the fiscal year, or August 2. The City Council must adopt a budget no later than 15 days prior to the end of the current fiscal year, or September 15, at which time the Mayo r will have an additional five (5) days to review the Adopted Budget. The Mayor may concur or exercise a line-item veto of any expenditure. The City Council has until the end of the fiscal year to concur with the Mayor’s changes or override any veto.

The City Council may amend the budget by motion during the fiscal year. The City Manager may transfer appropriations within the departments or within a given fund, provided that the total appropriations at the fund level and at the department level do not change. Transfers of appropriation between funds or departments require City Council approval.

The City uses encumbrance account ing to ensure effective budgetary control and accountability.

Unencumbered appropriations lapse at the end of the fiscal year, and encumbrances outstanding at the time are reported as restricted, committed or assigned fund balances for subsequent year expenditures.

About the City and its Government

Long Beach is a charter city, incorporated in 1897, in Southern California within the County of Los Angeles. Having an estimated 467,000 residents, it is the seventh most populous city in the state. The City has a Mayor, elected at-large, and a nine-member council, elected by district, all serving four-year terms. The City Auditor, Prosecut or and Attorney are elected at-large and serve four-year terms, as well. The City Council appoints the City Clerk a nd the City Manager. As head of the municipal government, the City Manager is responsible for the efficient administration of all departments, with the exception of the elective offices, City Clerk, and the three semi-autonomous commission-led departments. The City has a dive rse economic base including international trade, oil, aerospace, aviation, healthcare, education, and tourism.

Many award-winning facilities and services are ava ilable to Long Beach residents and visitors. These include public safety, parks, recreation, libraries, health and human services, public works, water, sewer and gas utilities, oil and gas production, a world class port, and a nationally recognized airport.

In 2021, the Long Beach Police Department continued to partner with the community to build positive relationships and prevent cr ime in the community. This result ed in an award for excellence and innovation in overdose prevention mapping, 63 co mmendations from residents and visitors about exemplary service and a $4.3 million Homeland Securi ty Award for critical training and equipment.

The Long Beach Fire Department continued to serve the City by responding to 79,000 calls during 2021 and sending experienced firefig hters to help quell 13 wildfires pl aguing the state of California.

The City’s fleet has been recognized as a Top 20 Fleet in Government Fleet Magazine competition for the sixth consecutive year and ran ked ninth best Green Fleet in the country by the National Association of Fleet Administrators. The Water Dep artment remains the lowest cost provider among the seven largest cities in California, and Long Beach Airport continues to be ranked in the Top 10 Best Small Airports by USA Today.

Long Beach is making continuous improvement in livability throughout the community with its award- winning inclusion, increased reso urces for streets and infrastructure, awards for technology, and more. Long Beach has been named one of the best cities in the nation for inclusion of the LGBTQ community in municipal law and policy, earning a perfect score from the Human Rights Campaign Foundation’s Municipal Equity Index and dedicating a Pride Lifeguard Tower which both protects those visiting the City’s beaches and demonstrates the City’s commitment to serving all the diverse v

members of the community. The City’s Racial Eq uity and Reconciliation Initiative has 21 distinct strategies and 107 action plans – many already complete or under way -- to address anti-Black racism, advance racial equity, and create a vision for Lon g Beach’s future where race does not determine social and economic outcomes.

Long Beach remains one of the most bike friendly cities in the nation, adding 3.5 miles of new bikeways during 2021, of which 2.75 miles are cl assified as “all ages.” That arrangement separates street and bike lanes with physical barriers, incr easing safety and comfort for both riders and motorists. For the eleventh consecutive year, Long Beach was recognized as a Top 10 Digital City and was awarded the highest honor in this ranking as the Top Digital City in the country by the Center for Digital Government for 2021. The City was also na med a Digital Inclusion Trailblazer by the National Digital Inclusion Alliance for its work towards inclusive digital access throughout the City.

The City remains committed to providing support services and a healthy environment for Long Beach residents. Thousands of housing units were built or rehabilitated to provide clean and safe housing opportunities for residents in all economic situat ions. Several City departments (e.g. Health and Human Services, Police, Fire) provide outreach services to address the causes affecting persons experiencing homelessness and the impact on the community.

The City swept over 128,000 miles of street surfaces, filled over 25,000 potholes, and collected 385,000 tons of trash which was processed by the City’s waste-to-energy plant, he lping to generate clean power and preventing over 7,700 to ns of recyclable materials from being disposed in landfills. The Police Department’s Homeless Outreach and Ment al Evaluation (HOME) Detail made over 8,200 contacts offering services to persons experiencing homelessness, resulting in temporary housing for 200 and permanent housing for 60 individuals. The City facilitated 7,952 visits from people experiencing homelessness to the Multi-Service Center and provided showers, hygiene services and linkages to comprehensive services and housing. The City also received 582 new Housing Authority vouchers for people experiencing homelessness or at-risk of homelessness. The City piloted an employment program to provide job readiness skills and employment opportunities for 40 people at- risk of or currently experienci ng homelessness. The City’s Clea n Team conducted 1,000 homeless encampment clean-ups throughout the City, and 7 65 tons of illegally dumped items were collected from City and private properties and alleyways. During the California Coastal Cleanup Day, 560 volunteers picked up and properly disposed of 180,000 pounds of trash improving the beauty and environmental health of Long Beach’s coastal areas.

The Port of Long Beach continues to be a world cl ass green port, protecting the environment while helping Long Beach to grow and prosper. The Port has one of the highest credit ratings for any U.S. seaport, allowing the Port to embrace growth opportunities at a modest cost.

Economic Outlook

Long Beach has drawn from the strength and adap tability of the local economy to maximize opportunities in today’s global world economy. Th e blending of local, national, and international businesses keep Long Beach growing and adapting to meet the constantly changing needs of today’s modern life. The City began to see a return of the television and film industry in 2021. Long Beach has been selected for the filming of many television shows like “NCIS:LA” and “Battlebots” as well as feature films such as “Chip n’ Dale Rescue Rangers,” “Purple Hearts,” and “Me Time.” In 2021, 350 film permits were issued, bringing 604 production days to the City. As the City’s business community vi

grows, the need for housing of all types also grows. To accommodate this need, thousands of diverse new residential projects have been approved for co nstruction. In addition to the improvements that can be easily seen, and equally important to the safety of residents and visitors, were the 13.7 lane- miles of residential streets and 2.1 lane-miles of alleys rehabilitated and the 1.45 million square feet of graffiti abated by City staff and contractors.

The City is committed to protecting the environmen t and the City’s resources. The Port continues to actively manage pollution generated by vessels stopping in Long Beach. In its efforts to reduce carbon emissions, the City participated in a pilot program to test ten hybrid polic e Interceptor vehicles.

Through Long Beach Transit, the City continues to maintain and improve a reliable, low-polluting public transportation system, improving the mobility and livability of Long Beach’s diverse communities. As buses and City vehicles are replac ed, they are converted to compressed natural gas and electric power. Transitioning to renewable en ergy sources will allow these services to continue, but with a lower cost to the environment. Im provement and cleaning of bus stops, updating crosswalks and coordinating the timing of traffi c signals have provided a safer and more secure environment for bus riders, pedestrians, and motorists.

The City continues to use innovation to mainta in and improve services. The 2021 budget included innovative changes throughout the City’s organi zation. Some of these improvements included:
outreach focused on meeting the specialized needs of persons experiencing homelessness, including creating a Homeless Court and Safe Parking program; surveying 600 miles of natural gas pipelines for leaks; adaptation of the new Billie Jean King Main Library to remote services; and achieving a 60% increase in adoptions since 2018 at Long Beach An imal Care Services. The Long Beach Airport held the Festival of Flight event and worked to continue the planned Terminal Improvements, allowing both residents and visitors to feel safe and comforta ble during their aviation journey to Long Beach, including maintaining the first PPE (Personal Protective Equipment) vending machine in the City and providing a COVID-19 testing site for travelers.

The City continues to leverage improvements in technology to deliver service to residents and visitors.

City staff have become expert users, adapting systems to improve information and service delivery. A Digital Inclusion Roadmap has been developed to assure that City residents may access and make use of the information and services available online.

The 2021 year included many improvements to the services and facilities available in Long Beach. The City has approved nineteen residential and mixed-use projects, ten affordable housing projects and adopted a citywide Enhanced Density Bonus Ordinance which offers incent ives for the development of mixed-income, multifamily housing citywide. The City continues to searc h for ways to improve affordable housing with $3.6 million Community Development Block Grant funding and $4.5 million in support of the Long Beach CARES Emergency Rent al Assistance programs. Houghton Park held a Youth Festival with 200 youth and family members attending, and the Parks, Recreation and Marine Department will continue to provide over 47,000 healthy meals to children through the Summer Youth Program. Outreach and education events from all departments will co ntinue to bring quality-of-life improvements to Long Beach residents.

The Challenge of and Response to the COVID-19 Pandemic

There have been and will always be challenges that the City must address. The COVID-19 pandemic has become one of its most important challenges and the City has been a state and national leader in vii

addressing the pandemic and minimizing the impact on the city, its residents, and its businesses. On March 11, 2020, the World Health Organization de clared a global pandemic due to the outbreak of the coronavirus respiratory disease (COVID-19). Since that time, the City has been a leader in many necessary actions including issuing health orders to restrict social gatherings, requiring face coverings when in a business or within six feet of another person, and holding some of the largest COVID-19 vaccination and testing events throughout various City locations. Despite the financial impacts, there were deferrals of business taxes and fees for thos e businesses impacted by the pandemic, deferrals of lease payments to the City by impacted tena nts, as well as grants and other actions (often supported by federal financial assistance) to as sist businesses and residents. A moratorium on evictions was enacted to provide relief to residentia l tenants facing hardships, temporary relief from parking penalties, and financing options for busin ess and residents having difficulty paying these costs.

Additionally, City employees whose positions enable d them to work remotely were encouraged to telecommute to support social distancing efforts and the City improved its technology and equipment to better support telecommuting. The City cont inued to maintain most services throughout the pandemic while reducing or eliminating affected servi ces as needed to comply with health orders.

During 2021, measures were taken to carefully reopen Long Beach City Hall to better serve the needs of the public. While some services remain limited or by appointment only, others have moved to a walk-in basis, allowing easier access to the public while protecting both staff and visitors.

Long Beach will continue to meet the challenge of the pandemic and is continuously searching for new opportunities to reduce the economic hardship endured by its residents and economic partners.

Through the Long Beach Recovery Act (LBRA), the City has prog rammed $252.0 million of federal, state, and City funding for this purpose. LBRA pr ograms fall under three categories. The Economic Recovery programs focus on residents and busines ses most impacted by the pandemic and provide funding to promote an effective and inclusive economic recovery that strengthens revenue generation and leverages consumer spending to stimulate la sting economic growth. The Healthy and Safe Community programs address the underlying social determinants of health and prioritize basic needs and the mental and physical health of residents most adversely impacted by the pandemic. The Securing our City’s Future category funds the rest oration of City services by eliminating employee furloughs, helping the City’s financial position by replacing lost revenues due to the pandemic, and developing financial and service st rategies to address projected fu ture budget shortfalls. LBRA programs will continue to evolve a nd grow as additional funding sources and recovery needs are identified.

Acknowledgments and Certificate of Achievement for Financial Reporting

We wish to acknowledge the participation and professional contribution of the Financial Management Department and other City departments’ staff in the preparation of this document. The ACFR requires much effort and time, above that of normal daily job duties. The continued dedication of all staff involved in the development of this ACFR is most appreciated.

For the fourteenth year in a row, the Government Fi nance Officers Association (GFOA) of the United States and Canada has awarded the Certificate of Achievement for Ex cellence in Financial Reporting to the City for its Annual Comprehensive Financia l Report for the fiscal year ended September 30, 2020. To be awarded a Certificate of Achievement, a government must publish an easy to read and efficiently organized ACFR. This report must sati sfy both Generally Accepted Accounting Principles viii

(GAAP) and applicable legal requirements. We believe that our current Annual Comprehensive Financial Report will meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

Respectfully submitted,

______________________________ ______________________________ Thomas B. Modica Kevin Riper
City Manager Director of Financial Management

Directory of City Officials
As of September 30, 2021

Dr. Robert Garcia
Mayor

Rex Richardson
Vice Mayor
9th District

Mary Zendejas Cindy Allen
Councilmember Councilmember
1 st District 2 nd District

Suzie Price Daryl Supernaw
Councilmember Councilmember
3 rd District 4th District

Stacy Mungo Suely Saro
Councilmember Councilmember
5 th District 6th District

Roberto Uranga Al Austin
Councilmember Councilmember
7 th District 8th District
Elected Department Heads
City Attorney Charles Parkin
City Auditor Laura L. Doud
City Prosecutor Douglas P. Haubert

Appointed by Council or Commission
City Clerk Monique De La Garza
Executive Director - Civil Service Christina P. Winting Executive Director - Harbor Mario Cordero
General Manager - Water Christopher J. Garner

City Manager
Thomas Modica

Assistant City Manager Deputy City Manager
Linda F. Tatum Kevin J. Jackson

Director of Financial Management Kevin Riper
Director of Health and Human Services Kelly Colopy
Director of Development Services Oscar Orci
Director of Economic Development John Keisler Director of the Long Beach Airport Cynthia Guidry
Director of Human Resources Joseph Ambrosini
Director of Library Services Glenda Williams
Director of Energy Resources Robert Dowell
Director of Parks, Recreation, and Marine Brent Dennis Director of Public Works Eric Lopez
Director of Technology and Innovation Lea Eriksen
Director of Disaster Preparedness and Emergency Reginald Harrison Fire Chief Xavier Espino
Chief of Police Robert Luna
x

Council District 1 Council District 2 Mayor Council District 3 Council District 4 Mary Zendajas Cindy Allen Robert Garcia Suzie Price Daryl Supernaw

Council District 5 Council District 6 Council District 7 Council District 8 Council District 9 Stacy Mungo Suely Saro Roberto Uranga Al Austin Vice Mayor Rex Richardson

ORGANIZATIONAL CHART

CITY OF LONG BEACH, CALIFORNIA
As of September 30, 2021
City Manager
Planning
Commission
Recreation
Commission
Citizen Police
Complaint
Commission
Harbor
Department
City Attorney

ELECTORATE
Harbor
Commission
Water
Commission
Fire
Police
Health &
Human Services
Development
Services
Long Beach
Airport
Parks,
Recreation &
Marine
Long Beach
Energy
Resources
Library Services
Public Works
Financial
Management
Economic
Development
Disaster Prep &
Emergency
Communication
Human
Resources
Technology &
Innovation
City Clerk
City Auditor
City
Prosecutor
Water
Department
Mayor and
City Council
Civil Service
Commission
Civil Service
xii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Long Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2020
Executive Director/CEO

FINANCIAL

SECTION
1 Independent Auditors’ Report
The Honorable Mayor and City Council
City of Long Beach, California:

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Long Beach, California (the City), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financ ial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Long Beach Public Transportation Company (the Company), which is the City’s only discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Company, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or e rror. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

KPMG LLP
Suite 1500
550 South Hope Street
Los Angeles, CA 90071-2629
KPMG LLP , a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. 2 2
Opinions
In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Long Beach, California as of September 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund and the housing assistance fund for the year then ended in accordance with U.S. generally accepted accounting principles.

Other Matters
Required Supplementary Information
U.S. generally accepted accounting principles require that the management’s discussion and analysis and the schedules listed under required supplementary information under the financial section in the table of contents (collectively referred to as required supplementary information) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential p art of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying supplementary information identified in the table of contents as the introductory section, additional financial information section, other supplementary information, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
3 3
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal cont rol over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Los Angeles, California
March 29, 2022

4 Intentionally Left Blank

MANAGEMENT’S

DISCUSSION

AND ANALYSIS
5 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

As the management team for the City of Long Beach (t he City), we present to the readers of the City’s basic financial statements this narrative overview and an alysis of the financial activities of the City for the fiscal year ended September 30, 2021. We encourage readers to consider this information in conjunction with the information found in the letter of transmittal.

Financial Highlights
 The assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $5.8 billion. Of this amount, $5.2 billion represents net investment in capital assets, and $802.4 million represents resources that are subject to restrictions on how they may be used (restricted net position). The City reports a deficit unrestricted net position of $168.5 million.  At the close of the fiscal year, the City’s governmental funds reported combined fund balances of $490.9 million, an increase of $83.6 million or 20.5 percent, from the prior fiscal year end. Of these balances, $4.5 million are nonspendable, $222.8 million are restricted, $78.0 million are committed, $202.1 million are assigned, and a deficit $16.5 million is unassigned.  The fund balance of the General Fund was $172.7 million. This represents an increase of $36.8 million or 27.0 percent from the prior fiscal year. Of this balance, $2.1 million is nonspendable, $2.8 million is restricted, $76.5 million is committed, $107.7 million is assigned, and a deficit $16.5 million is unassigned.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.

The City’s basic financial statements include three components: The Government-wide Financial Statements, the Fund Financial Statements, and the Notes to the Basic Financial Statements. This report also contains other supplementary information in addition to the basic financial statements, including non- major fund financial statements and a statistical section.

Summary Detail

REQUIRED COMPONENTS OF

THE ANNUAL FINANCIAL REPORT
Management's
Discussion and
Analysis
Basic Financial
Statements
Required
Supplementary
Information
Government-wide
Financial
Statements
Fund Financial
Statements
Notes to the
Financial
Statements
6 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Basic Financial Statements
The Basic Financial Statements contain the Government-wide Financial Statements, the Fund Financial Statements and the Notes to the Basic Financial Statements. This report also includes supplementary information intended to furnish additional detail to support the Basic Financial Statements.

Government-wide financial statements: The Government -wide Financial Statements provide a long - term view of the City’s activities as a whole and include the Statement of Net Position and the Statement of Activities. The statement of net position includes the City’s capital assets and long-term liabilities on a full accrual basis of accounting similar to that used by private sector companies. Over time, increases or decreases in net position may serve as a useful indicat or of whether the financial position of the City is improving or deteriorating. The statement of activities provides information about the City’s revenues and expenses on a full accrual basis, with an emphasis on measuring net revenues or expenses for each of the City’s programs. The Statement of Activities explains in detail the change in net position for the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

The amounts in the statement of net position and the statement of activities are separated into Governmental and Business-type Activities in order to provide a summary of each type of activity.

Both of the government-wide financial statements dis tinguish functions of the City that are principally supported by taxes and intergovernmental revenues, such as grant revenue (governmental activities), from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities). Governmental activities of the City include legislative and legal, general government, public safety, public health and human services, community and cultural, public works, and City oil operations. Business-type activities include those related to gas, water and sewer utilities, airport and solid waste management operati ons, towing, Tidelands, Marina area operations, as well as Tidelands oil revenue operations and the Port of Long Beach (the Harbor Department).

The government-wide financial statements include not only the City itself (known as the primary government), but also the legally separate Long Beach Transit Company (LBT) for which the City is the sole stakeholder and, therefore, has authority to affect the company. Financial information for this component unit is reported separately from the financial information presented for the primary government itself.

Fund financial statements: The fund financial statements focus on current available resources and are organized and operated on the basis of funds, each of which is defined as a fiscal and accounting entity with a self-balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. The focus of governmental and proprietary fund financial statements is on major funds. Major funds are determined based on minimum criteria set forth in Governmental Accounting Standards Board (GASB). Like states and other local governments, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Fund accounting is also used to aid financial management by segregating transactions related to certain government functions or activities.

Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial resources. 7 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Because the focus of governmental funds is narro wer than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.

Reconciliations are provided for both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances, to facilitate a comparison between governmental funds and governmental activities.

The City maintains numerous individual governmental funds. Information is presented separately for the General Fund, General Capital Projects Fund, and Housing Assistance Special Revenue Fund and the aggregate of all non-major governmental funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements, located in the Additional Financial Information Section of this report.

The City adopts an annual appropriated budget for its funds. A budgetary comparison is provided for each of the City’s governmental funds to demonstrate budgetary compliance. The budgetary comparison statement for the General Fund is located in the basic financial statements.

Proprietary funds: Proprietary funds are generally used to account for operations that provide services to the general public on a continuing basis or to internal City departments. Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis of accounting, similar to that used by private sector companies. These statements include a ll of their assets, deferred outflows and inflows of resources and liabilities, both current and long-term.

Since the City’s Internal Service Funds provide goods and services exclusively to the City’s governmental and business-type activities, their activities are only reported in total at the fund level. Internal Service Funds cannot be considered major funds because th eir revenues are derived from other City funds.

Revenues between funds are eliminated in the Government -wide Financial Statements, and any related profits or losses in Internal Service Funds are returned to the activities in which they were created, along with any residual net position of the Internal Service Funds.

Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds include Private Purpose Trust Funds such as the Miller Library Fund and the Mayor’s Fund for the Homeless, and Custodial Funds such as special parking and business assessment districts. The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position and the supplemental Custodial and Private Purpose Trust fund combining statements. These activities are excluded from the City’s other financia l statements because the City cannot utilize these assets to finance its own operations. The fiduciary fund financial statements can be found in the Basic Financial Statements section of this report.

The Notes to the Basic Financial Statements: The Notes to the Basic Financial Statements provide additional information and narrative disclosures that are essential to a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information: In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City’s progress in funding its obligation to provide pensi on and post-employment healthcare benefits to its employees. The combining statements referred to above in connection with non-major governmental funds and internal service funds are presented in the Required Supplementary Information along with information regarding capital assets. The table on the following page provides a summary of the significant features of the financial statements as well as insight into how the information is compiled for statement presentation.
8 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Government-Wide Financial Analysis - Analysis of Net Position As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of September 30, 2021, the City’s a ssets and deferred outflows exceeded liabilities and deferred inflows by $5.8 billion, an increase of $431.9 million.

Net investment in capital assets accounted for $5.2 billion, or 89.1 percent, of the City’s total net position.

This component of net position consists of capital assets (land, structures and improvements, equipment, infrastructure, and construction-in-progress) net of accumulated depreciation, reduced by outstanding debt attributable to the acquisition, construction, or improvement of the assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources as the capital assets themselves cannot be used to liquidate these liabilities. Net investment in capital assets increased by $39.5 million, or 0.8 percent, from the prior fiscal year. The increase of $20.1 million in governmental activities is mostly attributable to payment of related debt. The $19.4 million increase in business-type activities is also mostly due to payment of related debt.

Restricted net position amounted to $802.4 million, repr esenting 13.8 percent of total net position. This component of net position represents resources that are subject to external restrictions imposed by creditors and grantors, laws and regulations of other governments, and restrictions imposed by law through constitutional provisions or enabling legislation.

The remaining deficit balance of $168.5 million is th e net of the $655.9 million governmental activities deficit unrestricted net position (mostly related to pension liabilities) and the $487.4 million business-type activities unrestricted net position balance.

9 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

2021 2020 2021 2020 2021 2020
Assets:

Current and Other Assets 1,175,621$ 1,172,847 $ 2,423,230 $ 2,546,851$ 3,598,851$ 3,719,698$ Capital Assets 1,051,221 1,050,381 6,492,058 6,298,649 7,543,279 7,349,030 Total Assets 2,226,842 2,223,228 8,915,288 8,845,500 11,142,130 11,068,728 Deferred Outflows of Resources 99,311 81,213 55,762 49,180 155,073 130,393 Outflows of Resources 2,326,153 2,304,441 8,971,050 8,894,680 11,297,203 11,199,121 Liabilities:

Current Liabilities 287,315 294,201 468,415 779,224 755,730 1,073,425 Noncurrent Liabilities, Net 1,249,474 1,801,685 2,376,008 2,143,488 3,625,482 3,945,173 Total Liabilities 1,536,789 2,095,886 2,844,423 2,922,712 4,381,212 5,018,598 Deferred Inflows of Resources 517,378 167,468 585,498 631,880 1,102,876 799,348 2,054,167 2,263,354 3,429,921 3,554,592 5,484,088 5,817,946 Net Position:
452,155 432,090 4,727,066 4,707,630 5,179,221 5,139,720 Restricted 475,699 442,908 326,665 312,076 802,364 754,984 Unrestricted (655,868) (833,911) 487,398 320,382 (168,470) (513,529) Total Net Position 271,986$ 41,087$ 5,541,129$ 5,340,088$ 5,813,115$ 5,381,175$ Net Position
Totals
September 30, 2021 and 2020
Governmental
Activities
(In Thousands)
Business-type
Activities
Net Investment in Capital Assets
Total Assets and Deferred
Total Liabilities and Deferred
Inflows of Resources

Key Changes in the Statement of Net Position:

The City’s current and other assets decreased $12 0.8 million when compared to the prior fiscal year.

Governmental activities increased $2.8 million, primarily due to increased cash received from property tax, sales tax, and federal grant revenues. Business-type activities decreased $123.6 million mostly due to a decrease in fair value of the commodity swap for natural gas.

Citywide, capital assets increased $194.2 million or 2.6 percent. Governmental activities had a slight increase of $0.8 million and is mostly attributable to the purchase of vehicles. Business-type activities increased $193.4 million, or 3.1 percent. The change in business-type activities resulted from completion of the Long Beach Container Terminal at Middle Ha rbor, taxiway improvements at the Airport, and completion of the second phase of construction and repair of the Naples seawalls.

Deferred outflows of resources increased $24.7 million. Governmental activities deferred outflows increased $18.1 million and business-type activities increased $6.6 million. The increase is mostly attributable to an increase in the CalPERS pension contributions made after the measurement date, as the City selected to make the annual prepayment of the CalPERS unfunded liability.

Current liabilities decreased $317.7 million, or 29.6 percent. Governmental activities decreased $6.9 million, or 2.3 percent, and business-type activities decreased $310.8 million or 39.9 percent. The decrease in governmental activities resulted from decreased accounts payable and liabilities related to accrued employee benefits at fiscal year-end, offset by an increase in the receipt of grant funds received in advance of program expenses. The decrease in business-type activity is due to the Harbor fund reporting the 2018A and 2020C Notes as short-term in the prior year due to the refunded dates being in fiscal year 2021. 10 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Overall, noncurrent liabilities decreased $319.7 million or 8.1 percent City-wide. Governmental activities decreased $552.2 million, or 30.6 percent primarily due to a decrease in the net pension liability as a result of a significant increase in investment returns in the CalPERS pension plans. Business-type activities increased $232.5 million or 10.8 percent. The increase is mostly due to the Harbor Fund borrowing funds through the Transportation Infrastructure Finance and Innovation Act (TIFIA).

In total, deferred inflows of resources increased $3 03.5 million or 38.0 percent. The change is due to an increase in Governmental activities of $349.9 million mostly due to the difference between actual and expected investment returns by CalPERS for the City’s pension plans, offset by a decrease of $46.4 million in business-type activities resulting from a decrease in the fair value of the gas commodity swap.

11 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Analysis of Changes in Net Position
The following table presents condensed information from the statement of activities for the fiscal years 2021 and 2020. As previously stated, all changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. 2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for Services 150,848$ 157,229 $ 1,031,852$ 917,276 $ 1,182,700$ 1,074,505 $ Operating Grants and Contributions 352,336 200,489 160 3,394 352,496 203,883 Capital Grants and Contributions 76,033 65,232 40,099 80,020 116,132 145,252 General Revenues:

Taxes:

Property 225,820 220,665 - - 225,820 220,665 Sales 150,887 129,095 - - 150,887 129,095 Utility Users 38,546 33,767 - - 38,546 33,767 40,098 39,449 - - 40,098 39,449 Franchise Taxes 23,734 16,481 - - 23,734 16,481 3,496 11,426 1,469 34,336 4,965 45,762 Total Revenues 1,061,798 873,833 1,073,580 1,035,026 2,135,378 1,908,859 Expenses:

Legislative and Legal 13,058 13,155 - - 13,058 13,155 General Government 36,564 40,408 - - 36,564 40,408 Public Safety 311,933 389,489 - - 311,933 389,489 Public Health 60,016 71,880 - - 60,016 71,880 Community and Cultural 217,381 190,370 - - 217,381 190,370 Public Works 163,203 136,067 - - 163,203 136,067 Oil Operations 3,679 1,775 - - 3,679 1,775 Interest on Long-Term Debt 19,781 19,055 - - 19,781 19,055 Loss on Sale of Capital Assets - 2 - - - 2 Gas Utility - - 83,900 94,835 83,900 94,835 Water Utility - - 93,075 111,219 93,075 111,219 Tidelands Operating - - 110,419 143,249 110,419 143,249 Harbor - - 336,106 327,081 336,106 327,081 Non-major Enterprise Funds - - 254,323 232,428 254,323 232,428 Total Expenses 825,615 862,201 877,823 908,812 1,703,438 1,771,013 Increase (Decrease) in Net
Position before Transfers 236,183 11,632 195,757 126,214 431,940 137,846 Capital Assets Transfers - (37) - 37 - - Transfers (5,284) 26,881 5,284 (26,881) - - Total Change in Net Position 230,899 38,476 201,041 99,370 431,940 137,846 Net Position, Beginning of Year 41,087 2,611 5,340,088 5,240,718 5,381,175 5,243,329 Net Position, End of Year 271,986$ 41,087$ 5,541,129$ 5,340,088 $ 5,813,115 $ 5,381,175 $ Unrestricted Investment Earnings
Other
Changes in Net Position
September 30, 2021 and 2020
(In Thousands)
TotalsActivities Activities
Business-typeGovernmental

12 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Governmental activities
Governmental activities net position increased $230.9 million when compared to the fiscal year 2020 financial report.

Total revenues for governmental activities (excluding transfers) increased $187.9 million, or 21.5 percent, with the majority of the increase reported in operating and capital grants that include funding allocated through the American Rescue Plan Act (ARPA) and reimbursements from the Federal Emergency Management Agency (FEMA). Contributing to the ch ange was also an increase in general revenues including sales and property taxes. Total governmental program expenses decreased $36.6 million, or 4.2 percent. These changes are further discussed in the paragraphs that follow.

The following chart illustrates governmental activities revenues by source.

 The three largest revenue sources for governmental activities were operating grants and contributions, property taxes, and sales tax. Excluding transfers, these sources accounted for 68.8 percent of revenues. Together, these primary sources of governmental revenues increased $178.8 million, or 32.5 percent, from the previous year. Operating grants and contributions increased $151.8 million primarily due to the federal ARPA allocation, FEMA federal awards and state grants. Property tax revenues increased $5.2 million due to the City’s share of property tax revenues from the former Redevelopment Agency (RDA) project areas and higher assessed valuations as a result of an active housing market and new development projects. Sales tax increased $21.8 million due to significant increase of sales and use tax collected during the year across several categories including Autos & Transportation and Food and Drugs, which accounts for higher cannabis sales.

Charges for
Services

14.2%
Operating Grants
and Contributions

33.2%
Capital Grants
and Contributions

7.2%
Property Tax

21.3%
Sales Tax

14.3%
Utility Users Tax

3.6%
Other Taxes

3.8%
Franchise Fees

2.1%
Unrestricted
Investment
Earnings

0.3%
Governmental Activities - Revenues by Source
For the Year Ended September 30, 2021
13 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Governmental activities expenses, excluding transfers, decreased $36.6 million or 4.2 percent. The most significant changes were as follows:

 Public safety expenses reported the largest decrease of $77.6 million, or 19.9 percent. The change is primarily due to lower personnel expenses as a result of higher investment returns of the CalPERS pension plans, which resulted in a significant decrease in the City’s net pension liability.  Public works expenses increased $27.1 million, or 19.9 percent. The change is attributable to increased street repairs and maintenance, landscape improvements, and other infrastructure projects.  An increase of $27.0 million, or 14.2 percent, in expenses was also noted in Community and Cultural mostly due to increased grant funding for the emergency rental assistance and Section 8 Housing Choice Voucher programs.

The following chart illustrates governmental activities program expenses and revenues by function.

$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000Dollars in Thousands
Governmental Activities - Program Expenditures and Revenues For the Year Ended September 30, 2021
Expenditures
Revenues
14 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Business-type activities
The City’s major enterprise funds include Gas Utility, Water Utility, Tidelands Operating, and Harbor.

The non-major enterprise funds (“other proprietary funds”) comprise Tideland Oil Revenue, Sewer, Airport, Solid Waste Management, Towing, Subsidence, and Development Services.

$0
$100,000
$200,000
$300,000
$400,000
$500,000
Dollars in Thousands
Business-type Activities - Program Expenditures and Revenues For the Year Ended September 30, 2021
Expenses
Revenues
Charges for
Services

96.1% Capital Grants
and
Contributions

3.8%
Unrestricted
Investment
Earnings

0.1%
Business-type Activities - Revenues by Source
For the Year Ended September 30, 2021
15 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Business-type activities increased net position by $201.0 million or 3.8 percent. Key elements in the current year’s change in net position for various funds include:
 Gas Utility net position at fiscal year-end was deficit $9.5 million, a $15.3 million increase from the prior fiscal year. The increase was due to higher transmission and commodity revenues as a result of continued strong demand due to cooler weather, and lower personnel expenses as a result of higher investment returns of the CalPERS pension plans that led to a decrease in the net pension liability.
 Water Utility net position at fiscal year-end was $348.1 million, a $54.4 million increase from the prior fiscal year. The Water Utility realized higher charges for service revenues than in the prior year and lower personnel expenses as a result of higher investment returns of the CalPERS pension plans that led to a decrease in the net pension liability. The City also reported a transfer out of $30.8 million from the General Fund to the Water Utility Fund as a result of a court ruling against the City on litigation related to Measure M (see Note 25 – Subsequent Events for further details).  Tidelands Operating Fund net position increased $18.0 million, totaling $292.1 million at fiscal year-end. Convention Center revenues were higher due to its use in providing emergency shelter for migrant children. Also reported were lower personnel expenses as a result of higher investment returns of the CalPERS pension plans that led to a decrease in the net pension liability.

Tidelands transfers in from Tidelands Oil and Harbor amounted to $35.2 million. Of this amount Harbor transferred $21.7 million, consistent with City Charter mandated revenue sharing; and Tidelands Oil transferred $13.5 million to fund tidelands operations and capital improvements.  Harbor’s net position increased $95.9 million, totaling $4.5 billion at fiscal year-end. The increase primarily resulted from operating income of $127.1 million along with the receipt of $11.8 million in capital grants. Operating income increased $36 .0 million from prior fiscal year was primarily due to a surge in imported containerized cargo during the year. Containerized cargo volume alone was 24% higher than prior fiscal year. In add ition, rental property revenue was increased $8.2 million from the prior fiscal year mostly due to an increase in leased land for container storage.  Overall, total net position for non-major business-type activities increased $17.4 million, to $480.4 million at fiscal year-end. Significant changes in the non-major funds included increased net position in the Tidelands Oil Revenue fund of $7.1 million due to increased oil production revenues as a result of the oil price averaging $59 per barrel during fiscal year 2021, and the Towing Fund reported a deficit net position of $2.4 million due to decreased revenue as a result of a citywide moratorium on non-essential tows and a COVID-19 related storage fee waiver program.

Governmental Funds Financial Analysis
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, restricted, committed, assigned, and unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of September 30, 2021, the City’s governmental funds reported combined fund balances of $490.9 million, an increase of $83.6 million from the prior year. Further information can be found in Note 16 – Governmental Fund Balances and Fund Deficits.

Governmental fund assets increased $133.4 million, or 14 .7 percent, from the prior fiscal year. Pooled and non-pooled Cash and Investments increased $92.7 million and Receivables, including Noncurrent 16 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Receivables, increased $38.9 million. The increases were mostly due to increased federal and state grant revenues as a result of the pandemic, including ARPA and FEMA reimbursements.

Governmental fund liabilities increased $43.2 million, or 24.5 percent. Due to Other Funds increased $33.7 million mostly due to the General Fund owing the Water Utility Fund $30.8 million at fiscal year- end as a result of a court order ruling against the City on the Measure M litigation. The City set aside funds of $9.0 million for the payment and has started analyzing options to fund the remaining amount.

Unearned revenues increased $19.8 million due to advance grant funding to be used in the subsequent fiscal period, which was offset by a decrease of $11.4 million in accounts payable and liabilities related to accrued employee wages and benefits at fiscal year-end.

Of the $490.9 million total fund balances, $222.8 million or 45.4 percent have some form of external limitation on their use. Significant restrictions of fund balance at the close of the fiscal year include:

Restricted for Debt Service
Amounts restricted for debt service totaled $32.8 million. This amount is restricted for payment of former Redevelopment Agency and City related debt.

Restricted for Public Safety
Amounts restricted for public safety totaled $7.4 million. Restrictions include:
 Asset seizure funds from federal and state court forfeitures are restricted to support the Police Department. These funds amounted to $2.8 million at the end of the fiscal year.  Proposition H (Prop H), the Police and Fire Pub lic Safety Oil Production Tax proceeds may be used only for police officers, fire fighters, and related costs, including but not limited to equipment, facilities, and training in order to ensure timely responses to public needs. As of September 30, 2021, Prop H funds for police and fire amounted to $176 thousand.  Impact fees restricted for public safety amounted to $4.4 million.

Restricted for Public Health
Fund balance restricted for public health amounted to $13.0 million.

Restricted for Community and Cultural
Amounts restricted for community and cultural ac tivities totaled $97.7 million. Restrictions include the following:
 Fund balance restricted within the Housing Development fund for the provision of low-and- moderate-income housing amounted to $25.9 million. Of this, $3.8 million offsets advances to other funds.
 Fund balance restricted within the Housing Assistance fund for programs to assist very low- income families, the elderly, and the disabled amounted to $23.3 million.  Former Redevelopment Agency capital projects fund balance restricted for the purposes of winding down the activities of the Agency amounted to $9.0 million.  The Belmont Shore Parking Meter fund has restricted $97 thousand as the first pledge of revenue for special assessment debt that benefited the Belmont Shore area.  Grant funding in the amount of $5.9 million is restricted in the General Grants fund.  Fund balance restricted within the Community Development Grant fund amounted to $11.5 million.
 Fund balance restricted within the Other Special Revenue fund for economic development totaled $10.7 million at the close of the fiscal year.
 Development Impact Fees restricted for parks development amounted to $6.3 million.

Restricted for Public Works
As of September 30, 2021, fund balance restricted for public works amounted to $71.8 million. The most significant restrictions include:
17 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

 $12.5 million is restricted pursuant to the provisions of Proposition A. Proposition A funds are to be used exclusively to benefit public transit and may be traded with other jurisdiction in exchange for general or other funds.
 $21.1 million pursuant to the provisions of Proposition C. Proposition C also benefits public transit but has a wider range of uses including conges tion management programs, bikeways and bike lanes, street improvement supporting public transit, and pavement management projects.  $2.9 million pursuant to Air Quality Management District AB2766 requirements. AB2766 funding is used to assist the City in meeting federal and state Clean Air Act requirements.  $2.9 million pursuant to Measure M. Measure M is a one-half cent sales tax approved by Los Angeles County voters and is restricted for transportation purposes.  $1.8 million is restricted for Measure R, a separate one-half cent sales tax approved by Los Angeles County voters and is restricted for transportation purposes, including bus and highway corridor projects, streets and roads, and traffic control management.  $14.0 million is restricted related to State gas tax funding. Gas tax funding is restricted to constructing and maintenance of streets and sidewalks.

The General Capital Projects Fund reported a year-end fund balance of $158.1 million, which represented an increase of $28.7 million in fund balance. The change in fund balance was primarily due to higher grant revenues and sales tax allocations through Prop A and Prop C funding that is used for transportation related programs and projects.

The Housing Assistance Special Revenue Fund reported a year-end fund balance of $23.3 million, which represented an increase of $7.0 million in fund balance. The change in fund balance was primarily attributable to higher grant reimbursement revenues for the Section 8 Housing Choice Voucher program.

General Fund Revenues and Other Financing Sources
The table below illustrates General Fund revenues and other financing sources for the current and prior fiscal years:

Revenues and Fiscal Yea r Percent of Fiscal Yea r Percent of Other Financing Sources 2021 Total 2020 Total
Taxes 417,758$ 55.9% 371,350 $ 61.7%
Franchise Fees 23,734 3.2% 16,481 2.7%
Licenses and Permits 36,550 4.9% 35,615 5.9% Fines and Forfeitures 14,395 1.9% 16,354 2.7% Use of Money and Property 30,001 4.0% 32,175 5.3% From Other Agencies 8,482 1.1% 4,564 0.8% Charges for Services 39,646 5.3% 42,094 7.0% Other Revenue 5,391 0.7% 3,100 0.5%
Other Financing Sources 171,382 23.0% 79,701 13.3% 747,339$ 100% 601,434$ 100%
(In Thousands)
September 30, 2021 and 2020
General Fund Revenues and Other Financing Sources

General Fund revenues and other financing sources increased $145.9 million, or 24.3 percent, from the prior fiscal year. Significant year-over-year changes include:
18 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

 Taxes increased $46.4 million, or 12.5 percent primarily reflecting a significant increase from the prior year in property taxes of $18.7 million due to higher revenues in the City’s share of property tax revenues from the former Redevelopment Agency (RDA) project areas, and higher assessed valuations as a result of an active housing market and new development projects. Increases in sales taxes of $10.5 million and Measure A sales taxes of $11.3 million were across several sales tax categories including Autos & Transportation and Food and Drugs, which accounts for higher cannabis sales.
 Revenues derived from other financing sources increased $91.7 million, or 115.0 percent from the prior year. The increase is due to the transfer out of General Grants to the General Fund in the amount of $71.8 million as a result of the City’s approach to use ARPA funding. The City followed the ARPA regulations that allow use of funding to provide and maintain current government services, including public safety services, up to the amount of the City’s calculated revenue loss due to the pandemic.

General Fund Expenditures
Expenditures and other financing uses for the General Fund, including comparative amounts from the preceding year, are shown in following table:

Taxes

55.9%
Franchise Fees

3.2%
Licenses and
Permits

4.9%
Fines and
Forfeitures

1.9%
Use of Money
and Property

4.0%
From Other
Agencies

1.1%
Charges for
Services

5.3%
Other
Revenue

0.7%
Other Financing
Sources

23.0%
General Fund Revenues and Other Financing Sources
For the Year Ended September 30, 2021
19 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Expenditures and Fiscal Year Percent of Fiscal Year Percent of Other Financing Uses 2021 Total 2020 Total
Legislative and Legal 16,537$ 2.4% 13,108 $ 2.1% General Government 34,860 4.9% 27,363 4.6% Public Safety 408,803 57.6% 353,513 59.7%
Public Health 19,885 2.8% 9,612 1.6%
Community and Cultural 53,645 7.5% 45,052 7.6% Public Works 58,535 8.2% 47,891 8.1%
Oil Operations 2,446 0.3% 2,572 0.4% Capital Improvements 24,765 3.5% 347 0.1% Debt Service 1,487 0.2% 487 0.1%
Other Financing Uses 89,625 12.6% 92,065 15.6% 710,588$ 100% 592,010$ 100%
(In Thousands)
September 30, 2021 and 2020
General Fund Expenditures and Other Financing Uses

Expenditures, including other financing uses, increased $118.6 million, or 20.0 percent, from fiscal year 2020. Significant changes include:
 An increase in public safety of $55.3 million, or 1 5.6 percent. The majority of the increase was due to increased pension expenses that resulted from the City’s prepayment to CalPERS in July 2021 of the unfunded accrued liability. The City did not prepay CalPERS in July 2020.  Capital improvements reported an increase of $24.4 million due to the land and property purchase for Homeless Services Housing.
 An increase in Public Works for the same reason cited for Public Safety above, and for operating costs related to the street light maintenance program and increased permit inspection costs.  An increase in Public Health of $10.3 million due to increased expenses for homeless services and efforts for activities related to the COVID-19 response. 20 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Proprietary Funds Financial Analysis
Enterprise Funds: The combined net position of enterprise funds totaled $5.5 billion at the close of the fiscal year. Total unrestricted net position amounted to $516.2 million before the allocation of internal service fund activities. The total growth in net position was $200.9 million before the internal service fund activities allocation to enterprise funds. Other factors affecting the finances of these funds are addressed in the discussion of the City’s business-type activities.

The Water Utility Fund reported net position of $348.1 million, an increase of $54.4 million mostly because of the Measure M litigation, which resulted in reporting a receivable due from the General Fund of $30.8 million. Tidelands Operating reported net position of $292.1 million, an increase of $18.0 million from the prior year. Most of the increase was due to the higher Convention Center revenues due to the use of the Convention Center to provide emergency shelter for migrant children. Also reported were lower personnel expenses as a result of higher investment returns of the CalPERS pension plans that led to a decrease in the net pension liability. The Harbor reported net position of $4.5 billion, an increase of $95.9 million from the prior year, primarily due to operating income of $127.1 million along with the receipt of $11.8 million in capital grants. The Gas Utility reported a deficit net position of $9.5 million consisting of a net pension liability of $15.5 million and compensated absences of $6.6 million. Other Proprietary funds reported net position of $480.4 million.

Internal Service Funds
Internal service funds are used to finance and account for goods and services provided internally to City departments. As of September 30, 2021, internal service funds reported a net position of $49.1 million, an increase of $109.8 million. This is attributable to the reclassification of compensated absences from the Employee Benefit Fund to government-wide activities. There were also deficit net positions reported in the Workers’ Compensation Insurance Fund and General Liability Insurance Fund, which reported deficit balances of $101.1 million and $49.7 million, respectively. It is the City’s practice to bill City departments on a pay-as-you-go basis for functions performed by both funds, therefore, the long-term portions of related liabilities associated with these funds are not fully funded. City management believes that, over Legislative and
Legal

2.4%
General
Government

4.9%
Public Safety

57.6%
Public Health

2.8%
Community and
Cultural

7.5%
Public Works

8.2%
Oil Operations

0.3%
Capital
Improvements

3.5%
Debt Service

0.2%
Other
Financing
Uses

12.6%
General Fund Expenditures and Other Financing Uses
For the Year Ended September 30, 2021
21 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

the long-term, current and future billing rates are sufficient to remediate eventually any deficit net position. In addition, City management believes that the cash position of each fund is sufficient to cover the current costs related to health insurance, workers’ compensation, and general liability claims. The Civic Center, General Services, and Fleet Servi ces funds reported net positions of $56.8 million, $23.5 million, and $81.3 million, respectively.

Fiduciary Funds
The City maintains fiduciary funds for the assets of private purpose trust and custodial funds including the Miller Library Fund, the Mayor’s Fund for the Ho meless Fund, and various custodial funds held by the City as an agent for individuals, private organizations, and other governmental units. The private purpose trust funds are held in trust for the benefit of the Main Library Miller Room (i.e., staffing and books), and for homeless services.

General Fund Budgetary Highlights
The City adopts an annual budget for the governmental funds that include the General Fund, Capital Projects, Debt Service, and Special Revenue funds. The City Council adopts budget adjustments during the year that are generally contingent upon new or additional revenue.  The General Fund’s fiscal year 2021 final budget for estimated revenues and expenditure appropriations reflected a net increase to budgeted fund balance of $67.6 million. The change between original and final budgeted amounts wa s $209.2 million and consisted of additional appropriation for expenditures and other financing uses of $194.4 million and a decrease in revenue and other financing sources of $14.8 million. The changes to revenue forecasts were mostly due to transfers in from other funds to provide additional funding for the purchase of the Project Homekey site.

Significant changes in the appropriations budget include:
 An increase of $59.0 million to fund Long Beach Recovery Act programs focused on public health and economic recovery for residents and businesses in the community, which was made possible due to the use of federal ARPA funds paying for police costs that would normally be funded by the General Fund.
 Economic Development appropriations were increased by $24.4 million for purchase of land for Fire Station 9, and the purchase of land and property for the Project Homekey site.  A $9.8 million increase in Public Health to fund costs not supported by other grants or funding sources to relieve COVID-19 impacts to the community.
 A $6.0 million increase in Citywide Activities to place Measure M revenue in escrow in accordance with a Stay Order Agreement on Water Utility and Sewer transfers.  Increased appropriations in the amount of $5.2 million to transfer funds to the Special Advertising and Promotions Fund to replace lost revenues due to the pandemic.  A $4.5 million increase in Public Works related to capital outlay and improvements activities.

The actual budgetary basis results of the General Fund as compared to the final budget reflect a net positive variance of $238.9 million. This consists of favorable variances in both revenues and other financing sources of $190.3 million and expenditures and other financing uses of $48.5 million.

The General Fund revenues and other financing sources positive budget to actual variance of $190.3 million is mostly due to transfers in from the General Grants fund as a result of the federal ARPA award funding police costs normally budgeted and paid by the General Fund. Other notable positive variances 22 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

between the final budget and actual results include $10.5 million in property tax revenues, $19.0 million in sales tax revenues and, $31.2 million in charges for services.

General Fund expenditures and other financing uses reflect a positive budget to actual variance of $48.5 million primarily due to lower operational costs than anticipated in Public Works, Public Health and Financial Management.

Capital Assets and Debt Administration
Capital Assets: As of September 30, 2021, the City’s capital assets held by governmental and business- type activities amounted to $7.5 billion (net of accumulated depreciation). There was an overall increase of $194.2 million, or 2.6 percent, in the City’s capital assets over the prior fiscal year.

2021 2020 2021 2020 2021 2020
Land 225,112$ 222,835$ 1,376,585$ 1,314,278 $ 1,601,697 $ 1,537,113 $ Rights-of-way 81,340 81,340 203,304 203,304 284,644 284,644 Water Rights - - 40 40 40 40 Historic Collections - - 3,442 - 3,442 - Construction in Progress 62,905 61,221 602,338 2,097,145 665,243 2,158,366 Buildings 433,171 430,296 2,007,211 1,732,169 2,440,382 2,162,465 Improvements Other than Buildings 66,600 61,311 331,238 330,791 397,838 392,102 Infrastructure 64,796 71,133 1,859,235 503,997 1,924,031 575,130 Machinery and Equipment 40,165 43,234 30,539 37,081 70,704 80,315 Vehicles and Aircrafts 58,581 58,685 72,583 74,978 131,164 133,663 Software and Patents 18,551 20,326 5,543 4,866 24,094 25,192 1,051,221$ 1,050,381 $ 6,492,058$ 6,298,649 $ 7,543,279 $ 7,349,030 $ Total Net Capital Assets Capital Assets, Net of Depreciation
September 30, 2021 and 2020
(In Thousands)
Activities
Governmental Business-type
Activities Totals

Governmental activities’ net capital assets increased very slightly ($840 thousand), or 0.1 percent.

Significant activities during the year include the following:
 Land increased by $2.3 million and Buildings increased by $2.9 million, due to a land purchase for Fire Station 9 and a land and property purchase for the Project Homekey site.  Improvements other than Buildings increased by $5.3 million for the Public Safety Parking Structure.
 Infrastructure decreased by $6.3 million and Machinery and Equipment decreased by $3.1 million from the depreciation of those assets.

Business-type activities’ net capital assets increased $193.4 million, or 3.1 percent, over the prior fiscal year. Significant capital asset activities during the year include:
 Harbor capital assets increased by $166.9 million. The increase was due mostly to completion of the Long Beach Container Terminal at Middle Harbor and land purchases.  Other Enterprise Funds capital asset increases resulted from taxiway improvements at the Airport, completion of the second phase of construction and repair of the Naples seawalls, and continued investment in the replacement of the gas distribution system. 23 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Additional information on the City’s capital assets can be found in Note 7 to the basic financial statements, and information related to commitments for future capital asset acquisitions can be found in Note 22 to the basic financial statements.

Long-Term Indebtedness: As of September 30, 2021, the City’s net long-term debt outstanding totaled $2.8 billion. Of this amount, $2.5 billion relates to notes, bonds, capital leases, and $289.8 million to the new Civic Center complex.

The implied issuer ratings assigned to the City’s bond issues are as follows:
 Moody’s Investors Service: Aa2, Stable Outlook
 S&P Global Ratings: AA, Stable Outlook
 Fitch Ratings: AA, Stable Outlook
The table below provides summarized information for the City’s outstanding long-term debt obligations at the close of the current and prior fiscal years-end. 2021 2020 2021 2020 2021 2020
Notes Payable 7,569$ 7,905$ 545,309$ 477,884$ 552,878$ 485,789$ Bonds Payable 258,203 291,570 1,600,382 1,670,260 1,858,585 1,961,830 Capital Leases 38,943 44,676 32,943 37,747 71,886 82,423 Other Obligations 313,765 319,864 - - 313,765 319,864 618,480$ 664,015$ 2,178,634 $ 2,185,891 $ 2,797,114 $ 2,849,906 $ Total Outstanding Activities Activities Totals
Outstanding Debt Obligations
September 30, 2021 and 2020
(In Thousands)
Governmental Business-type

Major changes in long-term obligations during the year include:

Governmental Activities
 Bonds payable decreased by $33.4 million as a result of annual principal payments and premium amortization. During the year, the City also refunded two RDA tax allocation bond issues. For capital leases, the City is reporting a decrease of $5.7 million primarily due to principal payments offset by new leases for purchase of technology equipment. The Other Obligations of $313.8 million is mostly attributable to City Hall and Civic Center complex.

Business-Type Activities
 Bonds payable reported a decrease of $69.9 million mostly due to the payoff of various bond issues by the Harbor Department and principal payments made by other enterprise funds. Notes payable increased by $67.4 million mostly due to the Harbor Department making draws on a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan in the total amount of $495.0 million. The funds were used to finance and refinance costs related to the replacement of the Gerald Desmond Bridge, including, but not limited to, the repayment of the 2018A Notes and the 2020C Notes.
24 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2021

Additional information on the City’s long-term obligations can be found in Notes 8 through 11 to the basic financial statements.

Economic Outlook
In March 2021, President Biden signed into law the American Rescue Plan Act of 2021. Through the legislation, the City of Long Beach received an AR PA allocation of $135.8 million for various purposes including responding to the COVID-19 emergency, addressing its public health and economic effects, and providing government services affected by a loss in revenue due to the pandemic. The receipt of these federal funds has allowed the City to begin its recovery from the pandemic.

At the end of fiscal year 2021, the General Fund’s Operating Reserve stood at $16.0 million, or 2.7 percent of normal operating expenditures, which is within the policy required range of 2 to 7 percent. The General Fund’s Emergency Reserve, at $48.4 million, is 8.1 percent of normal operating expenditures and is below the target level of 10 percent but above the minimum of 8 percent. The General Fund unassigned balance is a deficit $16.5 million as a result of the transfer out to the Water Utility Fund related to the Measure M litigation.

Additional information related to the economy of the City is discussed in the accompanying Transmittal Letter.

Requests for Information
This financial report is designed to provide a general overview of the City’s finances. Questions concerning any of the information should be addressed to the City of Long Beach, Department of Financial Management, 411 West Ocean Boulevard, 6th Floor, Long Beach, California 90802.

BASIC

FINANCIAL

STATEMENTS
The notes to the basic financial statements are an integral part of this statement. 25 Component
Unit
Long Beach
Public
Governmental Business-Type Transportation
Activities Activities Total Compan y
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 107,847$ 234,104$ 341,951$ -$ Non-Pooled Cash and Cash Equivalents 24,510 35,544 60,054 52,615 Pooled Investments 203,964 442,744 646,708 - Interest Receivable 168 125 293 - Property Tax Receivable, Net 107,886 - 107,886 - Accounts and Loans Receivables, Net 25,660 120,805 146,465 8,110 Due from Other Governments 142,559 29,414 171,973 - Internal Balances 10,093 (10,093) - - Inventory 3,221 11,183 14,404 2,717 Other Assets and Deposits 13,087 38,669 51,756 1,149 Land Held for Resale 5,874 - 5,874 - Total Current Assets: 644,869 902,495 1,547,364 64,591 Noncurrent Restricted Assets:

Non-Pooled Investments - 52,813 52,813 22,890 Total Noncurrent Restricted Assets: - 52,813 52,813 22,890 Other Noncurrent Assets:

Pooled Investments 303,385 658,557 961,942 - Other Noncurrent Receivables 220,992 - 220,992 - Prepaid Gas - Long-term - 310,780 310,780 - Fair Value - Commodity Swap - 443,833 443,833 - Land and Other Capital Assets not being Depreciated 369,357 2,185,709 2,555,066 16,186 Capital Assets, net of Accumulated Depreciation 681,864 4,306,349 4,988,213 80,171 Other Assets 6,375 54,752 61,127 - Total Other Noncurrent Assets: 1,581,973 7,959,980 9,541,953 96,357 Total Assets 2,226,842 8,915,288 11,142,130 183,838

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 99,311 55,762 155,073 7,326

LIABILITIES
Current Liabilities:

Accounts Payable 58,576 233,802 292,378 4,195 Accrued Wages and Benefits Payable 20,575 5,986 26,561 4,426 Accrued Interest Payable 2,728 29,979 32,707 - Due to Other Governments 258 - 258 - Unearned Revenue, Credits, and Other Payables 72,983 49,436 122,419 42,180 Employee Benefits and Accrued Long-Term Obligations 92,973 17,709 110,682 19,884 39,222 131,503 170,725 1,124 Total Current Liabilities 287,315 468,415 755,730 71,809 Noncurrent Liabilities:

Fair Value - Interest Rate Swap - 10,079 10,079 - Other Payables - 9,575 9,575 8,471 Employee Benefits and Accrued Long-Term Obligations 287,790 149,164 436,954 4,720 579,258 2,052,956 2,632,214 3,628
Total OPEB Liability 6,730 2,055 8,785 - Net Pension Liability 375,696 152,179 527,875 13,866 Total Noncurrent Liabilities: 1,249,474 2,376,008 3,625,482 30,685 Total Liabilities 1,536,789 2,844,423 4,381,212 102,494

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 517,378 585,498 1,102,876 15,419 Total Liabilities and Deferred Inflows of Resources 2,054,167 3,429,921 5,484,088 117,913

NET POSITION
Net Investment in Capital Assets 452,155 4,727,066 5,179,221 91,604 Restricted for:

Debt Service 27,790 25,464 53,254 - Capital Projects 91,264 79,444 170,708 304 Public Safety 7,424 - 7,424 - Public Health 13,049 - 13,049 - Community and Cultural 317,561 - 317,561 - Healthcare Insurance 18,611 - 18,611 - Tidelands - 20,970 20,970 - Airport - 9,636 9,636 - Subsidence - 191,151 191,151 - Unrestricted (655,868) 487,398 (168,470) (18,657) Total Net Position 271,986$ 5,541,129$ 5,813,115$ 73,251$ Bonds, Loans, Capital Leases, and Other Long-Term Obligations Bonds, Loans, Capital Leases, and Other Long-Term Obligations Primary Government
City of Long Beach
Statement of Net Position
September 30, 2021
(In Thousands)
26 The notes to the basic financial statements are an integral part of this statement.

Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions

FUNCTIONS/PROGRAMS
GOVERNMENTAL ACTIVITIES:

Legislative and Legal 13,058$ 18$ -$ -$ General Government 36,564 15,729 3,505 - Public Safety 311,933 49,116 17,494 - Public Health 60,016 7,471 198,277 - Community and Cultural 217,381 34,452 50,281 18 Public Works 163,203 32,872 82,779 76,015 Oil Operations 3,679 11,190 - - Interest on Long-Term Debt 19,781 - - - Total Governmental Activities 825,615 150,848 352,336 76,033

BUSINESS-TYPE ACTIVITIES
Gas Utility 83,900 112,277 - - Water Utility 93,075 122,089 - 2,665 Tidelands Operating 110,419 99,458 69 134 Harbor 336,106 440,340 - 11,769 Non-major Enterprise Funds 254,323 257,688 91 25,531 Total Business-Type Activities 877,823 1,031,852 160 40,099 Total Primary Government 1,703,438$ 1,182,700$ 352,496$ 116,132$

COMPONENT UNIT
Long Beach Public Transportation
Company 110,756$ 1,988$ 91,987$ 22,739$ Taxes:

Property
Sales
Utility Users
Other
Franchise Taxes
Unrestricted Investment Earnings
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Program Revenues
City of Long Beach
Statement of Activities
For the Fiscal Year Ended September 30, 2021
(In Thousands)
The notes to the basic financial statements are an integral part of this statement. 27 Component Unit
Long Beach
Governmental Business-Type Public Transpor-
Activities Activities Total tation Compan y
(13,040)$ -$ (13,040)$ -$ (17,330) - (17,330) - (245,323) - (245,323) - 145,732 - 145,732 - (132,630) - (132,630) - 28,463 - 28,463 - 7,511 - 7,511 - (19,781) - (19,781) - (246,398) - (246,398) -
- 28,377 28,377 - - 31,679 31,679 - - (10,758) (10,758) - - 116,003 116,003 - - 28,987 28,987
- 194,288 194,288 - (246,398) 194,288 (52,110) - - - - 5,958 225,820 - 225,820 - 150,887 - 150,887 - 38,546 - 38,546 - 40,098 - 40,098 - 23,734 - 23,734 - 3,496 1,469 4,965 287 (5,284) 5,284 - - 477,297 6,753 484,050 287 230,899 201,041 431,940 6,245 41,087 5,340,088 5,381,175 67,006 271,986$ 5,541,129$ 5,813,115$ 73,251$ Primary Government
Net (Expense) Revenue and
Changes in Net Position
28 The notes to the basic financial statements are an integral part of this statement.

General Housing Other Total
Capital Assistance Governmental September 30,
General Projects Special Revenue Funds 2021
ASSETS
Pooled Cash and Cash Equivalents 172,337$ 170,437$ 25,083$ 100,540$ 468,397$ Non-Pooled Cash and Cash Equivalents 1,373 - 2,183 19,376 22,932 Property Taxes 113,077 - - - 113,077 Accounts Receivable 29,093 309 200 4,291 33,893 Due from Other Governments 40,851 16,733 - 84,945 142,529 Due from Other Funds 29,972 24 2,273 5,748 38,017 Allowance for Receivables (8,890) (63) (167) (5,812) (14,932) Inventory - 102 - - 102 Other Assets 2,127 1,489 - 106 3,722 Advances to Other Funds - - - 3,809 3,809 Land Held for Resale - - - 5,874 5,874 Other Noncurrent Receivables - - - 220,992 220,992 Total Assets 379,940$ 189,031$ 29,572$ 439,869$ 1,038,412$

LIABILITIES
Liabilities:

Accounts Payable 15,564$ 16,569$ 2,848$ 7,454$ 42,435$ Accrued Wages and Benefits Payable 11,677 230 109 1,521 13,537 Due to Other Governments 251 - 7 - 258 Due to Other Funds 57,293 259 123 23,824 81,499 Unearned Revenues 6,138 12,810 1,612 46,970 67,530 Deposits and Collections Held in Trust 3,819 1,103 1,537 2,044 8,503 Advances from Other Funds 114 - - 5,409 5,523 Total Liabilities 94,856 30,971 6,236 87,222 219,285

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 112,403 - - 215,784 328,187

FUND BALANCES
Nonspendable 2,127 1,489 - 927 4,543 Restricted 2,836 62,462 23,336 134,149 222,783 Committed 76,543 - - 1,414 77,957 Assigned 107,658 94,109 - 373 202,140 Unassigned (16,483) - - - (16,483) Total Fund Balances 172,681 158,060 23,336 136,863 490,940 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 379,940$ 189,031$ 29,572$ 439,869$ 1,038,412$ (In Thousands)
City of Long Beach
Governmental Funds
Balance Sheet
September 30, 2021
Receivables:

The notes to the basic financial statements are an integral part of this statement. 29 Total governmental fund balances 490,940$
574,884
89,960
(157,925)
(803,808)
77,935
Net position of governmental activities 271,986$
Amounts reported for governmental activities in the statement o f net position are different because:

City of Long Beach
Reconciliation of the Governmental Funds Balance Sheet to Governmental Activities in the Statement of Net Position September 30, 2021
(In Thousands)
Internal service funds are use d by management to c harge t he cost o f operations and financing related to the Civic Center complex; operations, maintenance, financing, timely replacement of information technology assets and vehicles; and to account for the City's risk management, self- insurance, and employe e benefits' programs to individual user funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.

Capital assets, consisting o f $327,078 o f non-depreciable assets an d $247,806 of depreciable assets, used in the governmental activities, which are not included in the internal service funds, are not financial resources and, therefore, are not reported in the funds.

Deferred outflows o f resources relate d to postemployment an d economic losses from refinancing of debt are not included in the governmental funds.

Deferred inflows o f resources relate d to postemployment an d economic gains from refinancing of debt are not included in the governmental funds.

Governmental long-term liabilities, excluding those liabilities in the internal service funds, are not due and payable in the current period and, therefore, are not reported in the funds. Liability amounts have been reduced by interest receivables for federal subsidy on Build America and Recovery Zone Economic Development Bonds.
30 The notes to the basic financial statements are an integral part of this statement.

General Housing Other Total
Capital Assistance Governmental September 30,
General Projects Special Revenue Funds 2021
Revenues:

Taxes:

Property 200,359 $ -$ -$ 25,784$ 226,143$ Sales 148,449 - - 2,438 150,887 Utility Users 38,546 - - - 38,546 Other Taxes 30,404 - - 9,694 40,098 Franchise Fees 23,734 - - - 23,734 Licenses and Permits 36,550 - - 10,460 47,010 Fines and Forfeitures 14,395 - - - 14,395 Use of Money and Property 30,001 389 139 3,317 33,846 From Other Agencies 8,482 76,106 113,266 230,603 428,457 Charges for Services 39,646 - - 2,030 41,676 Other 5,391 580 308 5,165 11,444 Total Revenues 575,957 77,075 113,713 289,491 1,056,236 Expenditures:

Current:

Legislative and Legal 16,537 - - - 16,537 General Government 34,860 - 22 6,951 41,833 Public Safety 408,803 - - 14,966 423,769 Public Health 19,885 - - 74,866 94,751 Community and Cultural 53,645 - 108,934 60,199 222,778 Public Works 58,535 8,569 - 11 67,115 Oil Operations 2,446 - - - 2,446 Total Current Expenditures 594,711 8,569 108,956 156,993 869,229 Capital Improvements 24,765 76,203 - 1,744 102,712 Debt Service:

Principal 1,436 - - 20,723 22,159 Interest 42 - - 11,928 11,970 Debt Administration Fees 9 - - 17 26 Total Expenditures 620,963 84,772 108,956 191,405 1,006,096 Excess of Revenues over
(under) Expenditures (45,006) (7,697) 4,757 98,086 50,140 Other Financing Sources (Uses):

Proceeds from Sale of Capital Asset 713 - 826 1,539 Debt Issuance - - - 19,765 19,765 Premium on Debt Issuance - - - 4,170 4,170 Payment to Refunded Bond Escrow Agent - - - (26,300) (26,300) Cost of Issuance - - - (410) (410) Transfers In 170,669 37,465 2,273 18,079 228,486 Transfers Out (89,625) (1,109) - (103,037) (193,771) Total Other Financing Sources (Uses) 81,757 36,356 2,273 (86,907) 33,479 Net Change in Fund Balances 36,751 28,659 7,030 11,179 83,619 Fund Balances - October 1 135,930 129,401 16,306 125,684 407,321 Fund Balances - September 30 172,681$ 158,060$ 23,336$ 136,863$ 490,940$ (In Thousands)
City of Long Beach
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended September 30, 2021
The notes to the basic financial statements are an integral part of this statement. 31 83,619$
11,226
(4,416)
(949)
46,915
165,980

25,853
(51,779)
(45,550)
Change in net position of governmental activities 230,899$ Governmental funds report capital outlay as expenditures. However, in the statemen t of activities, the cost associated with the acquisition of those assets is allocated over their estimated useful life and reported as depreciation expense. This is the amount by which capital outlay ($33,713) is less than depreciation ($22,487) in the current period.

Amounts reported for governmental activities in the statemen t of activities are differen t because:

Internal service funds are used by management to charge the cost of certain services to individual funds. The net loss of certain activities of internal service funds is reported as governmental activities.

Some expenses reporte d in the statemen t of activities do no t require the use of current financial resources and, therefore, are not reported as expenditures in government funds.

The ne t effect of miscellaneous transactions involving capital assets (e.g., sales, trade-ins, disposal of capital assets, and donations) results in a decrease to net position.

Under the modified accrual basis of accounting, revenue cannot be recognized until it is available to liquidate liabilities of the current period. Under accrual accounting, revenue is recognized when it is earned regardless of its availability. In addition, governmental funds report expenditures pertaining to the establishment of certain long-term loans. Payments on these long-term receivables are recorded as revenue in the governmental funds. These deferred credits are not reported on the statement of net position and, therefore, the corresponding net expense is not reported on the statement of activities.

Pension contributions made subsequent to the measurement date are an expenditure in the governmental f unds, but reported as a deferred outflow of resources in the statement of net position.

The issuance of long-term debt (e.g., bonds and leases) provides current financial resources to governmental f unds, while the payment of the principal of long-term debt and other long-term obligations consumes current financial resources. Neither transaction, however, has any affect on net positio n. Also, governmental f unds report the effect of premiums, discounts, and similar items when long-term debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Pension income reporte d in the statemen t of activities do no t require the use of current financial resources and, therefore, are not reported as revenues in governmental funds.

City of Long Beach
in Fund Balances of Governmental Funds to the Statement of Activities Excess of expenditures an d other uses ove r revenue an d other sources - total governmental funds
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Reconciliation of Statement of Revenues, Expenditures, and Changes 32 The notes to the basic financial statements are an integral part of this statement.

Variance with
Actual on Final Budget -
Budgetary Positive
Original Final Basis 1 (Negative)
Revenues:

Property Taxes 189,843$ 189,843$ 200,359$ 10,516$ Sales Taxes 129,427 129,427 148,449 19,022 Utility Users Taxes 34,905 34,905 38,546 3,641 Other Taxes 32,491 32,491 30,404 (2,087) Franchise Fees 27,079 27,079 23,734 (3,345) Licenses and Permits 30,738 31,788 36,550 4,762 Fines and Forfeitures 19,379 19,379 14,395 (4,984) Use of Money and Property 29,487 31,228 30,001 (1,227) From Other Agencies 6,479 6,580 8,482 1,902 Charges for Services 45,804 8,402 39,646 31,244 Other 3,968 1,163 5,391 4,228 Proceeds from Sale of Capital Asset - - 713 713 Transfers In 22,213 44,719 170,669 125,950 Total Revenues 571,813 557,004 747,339 190,335 Expenditures:

Current:

Legislative and Legal
Mayor and City Council 6,626 7,793 6,915 878 City Attorney 3,744 3,604 4,328 (724) City Clerk 6,190 6,340 5,294 1,046 General Government
City Auditor 3,024 3,024 3,374 (350) City Manager 6,700 10,209 10,057 152 Civil Service 3,302 3,223 3,615 (392) Financial Management 8,955 61,832 16,473 45,359 Planning and Building 843 1,867 2,122 (255) Public Safety
Police 247,762 252,373 260,373 (8,000) Fire 107,913 113,655 123,380 (9,725) Disaster Preparedness 12,596 12,706 14,342 (1,636) City Prosecutor 6,712 7,128 7,169 (41) Planning and Building - Code Enforcement 3,824 3,371 4,397 (1,026) Public Health 10,279 39,423 20,584 18,839 Community and Cultural
Community Development 1,497 7,275 679 6,596 Library 19,619 20,608 20,690 (82) Parks and Recreation 30,773 34,103 32,407 1,696 Public Works 45,999 93,049 58,669 34,380 Oil Operations 3,302 3,302 2,446 856 Debt Service 512 512 1,487 (975) Capital Outlay 169 24,539 24,765 (226) Transfers Out 36,976 51,788 89,625 (37,837) Total Expenditures 567,317 761,724 713,191 48,533 Net Change in Budgetary Fund Balance: 4,496$ (204,720)$ 34,148$ 238,868$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 34,148$ Add: Encumbrances 2,603
Change in Fund Balance - September 30, GAAP Basis 36,751 Fund Balance, October 1, GAAP Basis 135,930
Fund Balance, September 30, GAAP Basis 172,681$
1 Incorporates adjustments due to prepayment of the CalPERS unfunded liability. See page 161 for details. (In Thousands)
Budgeted Amounts
City of Long Beach
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
Variance
with Final
Actual on Budget
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 92$ 92$ 139$ 47$ From Other Agencies 91,946 110,078 113,266 3,188 Other 177 177 308 131 Transfers In - - 2,273 2,273 Total Revenues 92,215 110,347 115,986 5,639 Expenditures:

General Government
Financial Management 175 175 22 153 Community and Cultural
Development Services 93,730 111,718 108,938 2,780 Total Expenditures 93,905 111,893 108,960 2,933 Net Change in Budgetary Fund Balance (1,690)$ (1,546)$ 7,026$ 8,572$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 7,026$ Add: Encumbrances 4
Change in Fund Balance - September 30, GAAP Basis 7,030 Fund Balance, October 1, GAAP Basis 16,306
Fund Balance, September 30, GAAP Basis 23,336$
(In Thousands)
Budgeted Amounts
City of Long Beach
Housing Assistance Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
The notes to the basic financial statements are an integral part of this statement. 33 Variance
with Final
Actual on Budget
Budgetary Positive
Original Final Basis (Negative)
Revenues:

General Government
Financial Management 175 175 22 153 Community and Cultural
Development Services 93,730 111,718 108,938 2,780 Total Expenditures 93,905 111,893 108,960 2,933 Net Change in Budgetary Fund Balance (1,690)$ (1,546)$ 7,026$ 8,572$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 7,026$ Add: Encumbrances 4
Change in Fund Balance - September 30, GAAP Basis 7,030 Fund Balance, October 1, GAAP Basis 16,306
Fund Balance, September 30, GAAP Basis 23,336$
(In Thousands)
Budgeted Amounts
City of Long Beach
Housing Assistance Special Revenue Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
34 The notes to the basic financial statements are an integral part of this statement.

Gas Wate r Tidelands
Utility Utility Operating
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 58,150$ 27,643$ 140,988$ Non-Pooled Cash and Cash Equivalents 89 510 27,962 Receivables:

Interest Receivable 15 10 61 Accounts Receivable 14,662 10,925 13,642 Notes and Loans Receivable - - - Due from Other Governments - 475 268 Due from Other Funds - 30,846 21,733 Allowance for Receivables (3,023) (1,071) (1,904) Deposits - - -
Inventory 3,679 6,557 -
Prepaid Gas - Current 23,689 - - Other Assets - Current 104 5,050 - Total Current Asset 97,365 80,945 202,750 Noncurrent Assets:

Restricted Noncurrent Assets:

Non-Pooled Investments 27,085 2,395 15,884 Noncurrent Receivables:

Advances to Other Funds - - - Fair Value - Commodity Swap 443,833 - - Capital Assets:

Land and Other Capital Assets not being Depreciated 13,401 71,269 68,752 Capital Assets, Net of Accumulated Depreciation 163,919 288,936 276,768 Prepaid Gas - Long Term 310,780 - - Other Assets - Long-Term - - - Total Noncurrent Assets 959,018 362,600 361,404 Total Assets 1,056,383 443,545 564,154

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 13,874 5,423 12,330 Business-type Activities - Enterprise Funds
City of Long Beach
Proprietary Funds
Statement of Net Position (Deficit)
September 30, 2021
(In Thousands)
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
741,086$ 367,538$ 1,335,405$ 146,799$
1 6,982 35,544 1,578 7 32 125 - 61,857 32,000 133,086 1,532
- - - - 24,975 3,696 29,414 30
444 2,825 55,848 27,333 (2,171) (4,112) (12,281) (24) - - - 9,365 762 185 11,183 3,119 - - 23,689 - 9,816 10 14,980 -
836,777 409,156 1,626,993 189,732
- 7,449 52,813 - 1,210 114 1,324 5,687 - - 443,833 - 1,953,119 79,168 2,185,709 42,279
3,244,455 332,271 4,306,349 434,058
- - 310,780 - 54,752 - 54,752 6,375 5,253,536 419,002 7,355,560 488,399
6,090,313 828,158 8,982,553 678,131
15,990 8,145 55,762 9,351
(Continued)
Business-type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 35 Gas Wate r Tidelands
Utility Utility Operating
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 58,150$ 27,643$ 140,988$ Non-Pooled Cash and Cash Equivalents 89 510 27,962 Receivables:

Restricted Noncurrent Assets:

Non-Pooled Investments 27,085 2,395 15,884 Noncurrent Receivables:

Advances to Other Funds - - - Fair Value - Commodity Swap 443,833 - - Capital Assets:

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 13,874 5,423 12,330 Business-type Activities - Enterprise Funds
City of Long Beach
Proprietary Funds
Statement of Net Position (Deficit)
September 30, 2021
(In Thousands)
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
741,086$ 367,538$ 1,335,405$ 146,799$
1 6,982 35,544 1,578 7 32 125 - 61,857 32,000 133,086 1,532
- - - - 24,975 3,696 29,414 30
444 2,825 55,848 27,333 (2,171) (4,112) (12,281) (24) - - - 9,365 762 185 11,183 3,119 - - 23,689 - 9,816 10 14,980 -
836,777 409,156 1,626,993 189,732
- 7,449 52,813 - 1,210 114 1,324 5,687 - - 443,833 - 1,953,119 79,168 2,185,709 42,279
3,244,455 332,271 4,306,349 434,058
- - 310,780 - 54,752 - 54,752 6,375 5,253,536 419,002 7,355,560 488,399
6,090,313 828,158 8,982,553 678,131
15,990 8,145 55,762 9,351
(Continued)
Business-type Activities - Enterprise Funds
36 The notes to the basic financial statements are an integral part of this statement.

Gas Wate r Tidelands
Utility Utility Operating

LIABILITIES
Current Liabilities Payable from Current Assets:

Accounts Payable 6,447 15,686 4,375
Accrued Wages 645 816 886
Accrued Interest Payable 9,954 247 3,604 Due to Other Funds 1,341 1,535 1,629 Unearned Revenues 1,407 180 2,143 Collections Held in Trust - 88 215 Customers Deposits 2,680 20 763 Advances from Developers - 1,597 - Accrued Self-Insurance Claims - Current - - - Environmental Remediation - Current - - - Due to State of California - - - 2,003 2,294 2,761
Obligations Under Capital Leases - Current 1,158 1,640 41 Bonds Payable Due Within One Year 16,040 3,300 13,165 Other Long-Term Obligations - Current - - 29 Total Current Liabilities 41,675 27,403 29,611 Noncurrent Liabilities:

Advances from Other Funds - - 1,210 Unearned Revenues - - 4,526 Accrued Self-Insurance Claims - - - Accrued Oil Field Abandonment Costs - - - Environmental Remediation - - - Site Restoration - 1,000 -
Due to State of California - - - Fair Value - Interest Rate Swap 10,079 - - 4,607 4,712 6,614
Obligations Under Capital Leases 10,333 19,586 185 Other Long-Term Obligations - - 280 Bonds Payable 540,121 10,239 195,088
Total OPEB Liability 272 282 392 Net Pension Liability 15,457 20,005 22,141 Total Noncurrent Liabilities 580,869 55,824 230,436 Total Liabilities 622,544 83,227 260,047

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 457,223 17,604 24,311

NET POSITION (DEFICIT)
Net Investment in Capital Assets 162,671 326,635 156,322 Restricted for:

Debt Service - 1,441 5,927
Capital Projects 13,249 - 389 Insurance - - -
Tidelands - - 20,970 Airport - - -
Subsidence - - -
Unrestricted (185,430) 20,061 108,518
Total Net Position (Deficit) (9,510)$ 348,137$ 292,126$ Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Net Position of Business-type Activities
Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
Business-type Activities - Enterprise Funds
Proprietary Funds
City of Long Beach
(Continued)
(In Thousands)
September 30, 2021
Statement of Net Position (Deficit)
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
180,916 26,378 233,802 16,141
2,257 1,382 5,986 7,038 13,908 2,266 29,979 773
25,970 2,703 33,178 6,521
18,472 5,875 28,077 -
3,393 763 4,459 4,097 - 835 4,298 - - 11,005 12,602 -
450 - 450 31,605 - - - 175 - 5,825 5,825 - 6,207 3,994 17,259 6,795 - - 2,839 9,130 35,530 3,700 71,735 1,612
51,075 - 51,104 5,189 338,178 64,726 501,593 89,076
4,087 - 5,297 - - 5,049 9,575 - - - - 144,780 - 110,300 110,300 -
2,600 - 2,600 - - - 1,000 - - - - 725 - - 10,079 - 12,238 7,093 35,264 7,855
- - 30,104 29,813 493,925 - 494,205 284,576 682,062 101,137 1,528,647 16,340
675 434 2,055 472 60,174 34,402 152,179 33,434
1,255,761 258,415 2,381,305 517,995
1,593,939 323,141 2,882,898 607,071
53,642 32,718 585,498 31,266
3,768,983 312,455 4,727,066 130,634
13,717 4,379 25,464 -
37,743 28,063 79,444 1,395
- - - 18,611 - - 20,970 - - 9,636 9,636 - - 191,151 191,151 -
638,279 (65,240) 516,188 (101,495) 4,458,722$ 480,444$ 5,569,919 49,145$
(28,790)
5,541,129$
Business-type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 37 Gas Wate r Tidelands
Utility Utility Operating

LIABILITIES
Current Liabilities Payable from Current Assets:

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 457,223 17,604 24,311

NET POSITION (DEFICIT)
Net Investment in Capital Assets 162,671 326,635 156,322 Restricted for:

Debt Service - 1,441 5,927
Capital Projects 13,249 - 389 Insurance - - -
Tidelands - - 20,970 Airport - - -
Subsidence - - -
Unrestricted (185,430) 20,061 108,518
Total Net Position (Deficit) (9,510)$ 348,137$ 292,126$ Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Net Position of Business-type Activities
Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
Business-type Activities - Enterprise Funds
Proprietary Funds
City of Long Beach
(Continued)
(In Thousands)
September 30, 2021
Statement of Net Position (Deficit)
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
180,916 26,378 233,802 16,141
2,257 1,382 5,986 7,038 13,908 2,266 29,979 773
25,970 2,703 33,178 6,521
18,472 5,875 28,077 -
3,393 763 4,459 4,097 - 835 4,298 - - 11,005 12,602 -
450 - 450 31,605 - - - 175 - 5,825 5,825 - 6,207 3,994 17,259 6,795 - - 2,839 9,130 35,530 3,700 71,735 1,612
51,075 - 51,104 5,189 338,178 64,726 501,593 89,076
4,087 - 5,297 - - 5,049 9,575 - - - - 144,780 - 110,300 110,300 -
2,600 - 2,600 - - - 1,000 - - - - 725 - - 10,079 - 12,238 7,093 35,264 7,855
- - 30,104 29,813 493,925 - 494,205 284,576 682,062 101,137 1,528,647 16,340
675 434 2,055 472 60,174 34,402 152,179 33,434
1,255,761 258,415 2,381,305 517,995
1,593,939 323,141 2,882,898 607,071
53,642 32,718 585,498 31,266
3,768,983 312,455 4,727,066 130,634
13,717 4,379 25,464 -
37,743 28,063 79,444 1,395
- - - 18,611 - - 20,970 - - 9,636 9,636 - - 191,151 191,151 -
638,279 (65,240) 516,188 (101,495) 4,458,722$ 480,444$ 5,569,919 49,145$
(28,790)
5,541,129$
Business-type Activities - Enterprise Funds
38 The notes to the basic financial statements are an integral part of this statement.

Gas Water Tidelands
Utility Utility Operating
Operating Revenues:

Licenses and Permits -$ -$ 470$ Fines and Forfeitures - - 311 Fees, Concessions, and Rentals - - 39,563 From Other Agencies - - - Charges for Services 108,871 117,593 46,383 Other 3,059 1,375 4,273
Total Operating Revenues 111,930 118,968 91,000 Operating Expenses:

Personnel Services 12,924$ 15,555$ 23,261$ Purchases of Gas and Water 14,693 27,672 - Maintenance and Other Operations 18,726 33,499 54,491 Rental Expense - - - Insurance Premiums - - - Self-Insured Losses - - - Compensated Absences - - - Employee Benefits - - - Payments to Other Entities - - - Depreciation 7,724 13,428 21,846
Total Operating Expenses 54,067 90,154 99,598 Operating Income (Loss) 57,863 28,814 (8,598) Non-Operating Income (Expenses):

Interest Income 1,276 101 84 Interest Expense (28,689) (1,394) (8,589) Gain (Loss) on Disposition of Capital Assets (472) (325) 17 Oil Field Abandonment - - - Operating Grants - - 69 Other Income 347 3,121 8,457 Other Expense (729) (789) (3,151) (28,267) 714 (3,113)
Income (Loss) Before Contributions S
and Transfers 29,596 29,528 (11,711) Capital Grants and Contributions - 2,665 134 Transfers:

Transfers In 980 30,832 35,228 Transfers Out (15,323) (8,628) (5,700) Change in Net Position 15,253 54,397 17,951 Net Position (Deficit) - October 1, as adjusted (24,763) 293,740 274,175 Net Position (Deficit) - September 30 (9,510)$ 348,137$ 292,126$ City of Long Beach
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) For the Fiscal Year Ended September 30, 2021
(In Thousands)
Change in Net Position of Business - Enterprise Funds
Change in Net Position of Business-type Activities
Total Non-Operating Income (Expenses)
Business-type Activities - Enterprise Funds
Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
-$ 18,406$ 18,876$ -$ - 15 326 - - 123,536 163,099 - - 2,335 2,335 - 431,373 109,558 813,778 480,246 3,271 692 12,670 5,787 434,644 254,542 1,011,084 486,033
37,258$ 36,685$ 125,683$ 35,075
- - 42,365 - 59,145 113,706 279,567 67,818 - 184 184 - - - - 10,508 - - - 12,567 - - - 60,982 - - - 266,180 38,320 69,919 108,239 -
172,827 18,782 234,607 30,289 307,550 239,276 790,645 483,419 127,094 15,266 220,439 2,614
- 8 1,469 1 (27,068) (7,021) (72,761) (9,897) - 1 (779) 899 - (7,700) (7,700) - - 91 160 984 5,696 3,146 20,767 1,609 - (1,416) (6,085) (1,613) (21,372) (12,891) (64,929) (8,017) 105,722 2,375 155,510 (5,403) 11,769 25,531 40,099 -
134 5,992 73,166 13,195 (21,733) (16,498) (67,882) (53,194) 95,892 17,400 200,893 (45,402) 4,362,830 463,044 5,369,026 94,547
4,458,722$ 480,444$ 5,569,919 49,145$
200,893
148
201,041$
Business-Type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 39 Gas Water Tidelands
Utility Utility Operating
Operating Revenues:

Transfers In 980 30,832 35,228 Transfers Out (15,323) (8,628) (5,700) Change in Net Position 15,253 54,397 17,951 Net Position (Deficit) - October 1, as adjusted (24,763) 293,740 274,175 Net Position (Deficit) - September 30 (9,510)$ 348,137$ 292,126$ City of Long Beach
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) For the Fiscal Year Ended September 30, 2021
(In Thousands)
Change in Net Position of Business - Enterprise Funds
Change in Net Position of Business-type Activities
Total Non-Operating Income (Expenses)
Business-type Activities - Enterprise Funds
Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
-$ 18,406$ 18,876$ -$ - 15 326 - - 123,536 163,099 - - 2,335 2,335 - 431,373 109,558 813,778 480,246 3,271 692 12,670 5,787 434,644 254,542 1,011,084 486,033
37,258$ 36,685$ 125,683$ 35,075
- - 42,365 - 59,145 113,706 279,567 67,818 - 184 184 - - - - 10,508 - - - 12,567 - - - 60,982 - - - 266,180 38,320 69,919 108,239 -
172,827 18,782 234,607 30,289 307,550 239,276 790,645 483,419 127,094 15,266 220,439 2,614
- 8 1,469 1 (27,068) (7,021) (72,761) (9,897) - 1 (779) 899 - (7,700) (7,700) - - 91 160 984 5,696 3,146 20,767 1,609 - (1,416) (6,085) (1,613) (21,372) (12,891) (64,929) (8,017) 105,722 2,375 155,510 (5,403) 11,769 25,531 40,099 -
134 5,992 73,166 13,195 (21,733) (16,498) (67,882) (53,194) 95,892 17,400 200,893 (45,402) 4,362,830 463,044 5,369,026 94,547
4,458,722$ 480,444$ 5,569,919 49,145$
200,893
148
201,041$
Business-Type Activities - Enterprise Funds
40 The notes to the basic financial statements are an integral part of this statement.

INCREASE (DECREASE) IN CASH AND Gas Water Tidelands
CASH EQUIVALENTS Utility Utility Operating
Cash Flows from Operating Activities:

Receipts from Customers 108,660$ 118,419$ 82,790$ Receipts from Oil Companies - - - Receipts from Other Entities - - 5,052 Receipts from Other Funds - - - Payments for Employee Salaries (19,144) (22,871) (33,610) Payments for Goods and Services (7,619) (59,575) (59,134) Payments for Compensated Absences - - - Payments for Employee Benefits - - - Payments for Liability Claims - - - Payments to Other Funds - - - Payments to Other Entities - (1,948) (5,564) Other Income 347 375 13,149
Other Expense (729) (792) (3,153) 81,515 33,608 (470)
Cash Flows from Non-Capital Financing Activities:

Other Income - 1,036 -
- - 71
Operating Subsidies Paid to Other Funds - - - (13,990) - -
Payments of Interest (28,690) - - Transfers In 980 1,710 35,228
Transfers Out (15,323) (8,628) (5,700) Net Cash Provided by (Used for)
Non-Capital Financing Activities (57,023) (5,882) 29,599 Cash Flows from Capital and Related Financing Activities:
- - 134
- 238 17
- - -
- 4,082 -
Receipts from Passenger Facility Charges - - - - - -
(12,570) (17,828) (10,738)
- (3,170) (12,871)
(1,735) (3,634) (66)
(285) (1,530) (8,921)
Net Cash Used for Capital
and Related Financing Activities (14,590) (21,842) (32,445) Cash Flows from Investing Activities:
- - 1,499
(1,586) - -
- - -
- - (301)
1,282 553 -
(304) 553 1,198
Net Increase (Decrease) in Cash and Cash Equivalents
9,598 6,437 (2,118)
Cash and Cash Equivalents - October 1 48,641 21,716 171,068 Cash and Cash Equivalents - September 30 58,239$ 28,153$ 168,950$ Business-Type Activities - Enterprise Funds
Payments for Purchase of Investments
Receipt from Joint Venture
Payments of Interest
City of Long Beach
(In Thousands)
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended September 30, 2021
Net Cash Provided by (Used for) Operating Activities
Operating Grants Received from Other Governments
Payments of Principal on Bonds Payable
Proceeds from the Sale of Capital Assets
Receipt of Capital Grants
Net Increase (Decrease) in Cash and Cash Equivalents
Proceeds from the Sale of Investments
Receipts of Interest
Net Cash Provided by Investing Activities
Proceeds from Issuance of Long-Term Obligations
Receipts of Contributed Capital
Receipt of Federal Subsidy
Payments of Interest
Payments for Capital Acquisitions
Payments of Principal on Bonds Payable
Payments of Principal on Other Long-Term Obligations
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
457,190$ 158,056$ 925,115$ 5,092$
- 91,717 91,717 -
- 16,647 21,699 (8,274) - 760 760 508,513 (53,006) (51,175) (179,806) (47,812) (125,119) (117,867) (369,314) (64,919)
- - - (59,972) - - - (290,448) - - - (26,726) - (1,141) (1,141) - - (75,136) (82,648) -
- 1,452 15,323 1,443 (1,209) (1,416) (7,299) (1,613) 277,856 21,897 414,406 15,284
- - 1,036 166 - 91 162 984 - (29) (29) - - - (13,990) - - - (28,690) - - 5,992 43,910 (53,194) (19,797) (16,498) (65,946) 13,195
(19,797) (10,444) (63,547) (38,849) 33,046 - 33,180 -
- 1 256 954 545,000 - 545,000 -
- 22,062 26,144 -
- 3,469 3,469 -
- 1,156 1,156 -
(203,230) (48,544) (292,910) (24,375)
(24,470) (3,532) (44,043) (8,307) (472,050) - (477,485) (11,132) (46,727) (6,364) (63,827) (8,505) (168,431) (31,752) (269,060) (51,365)
- 1,238 2,737 -
- - (1,586) - 3,000 - 3,000 -
- (221) (522) (2,006) 4,866 - 6,701 -
7,866 1,017 10,330 (2,006)
97,494 (19,282) 92,129 (76,936)
643,593 393,802 1,278,820 225,313
741,087$ 374,520$ 1,370,949$ 148,377$
(continued)
Business-Type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 41 INCREASE (DECREASE) IN CASH AND Gas Water Tidelands
CASH EQUIVALENTS Utility Utility Operating
Cash Flows from Operating Activities:

Other Income - 1,036 -
- - 71
Operating Subsidies Paid to Other Funds - - - (13,990) - -
Payments of Interest (28,690) - - Transfers In 980 1,710 35,228
Transfers Out (15,323) (8,628) (5,700) Net Cash Provided by (Used for)
Non-Capital Financing Activities (57,023) (5,882) 29,599 Cash Flows from Capital and Related Financing Activities:
- - 134
- 238 17
- - -
- 4,082 -
Receipts from Passenger Facility Charges - - - - - -
(12,570) (17,828) (10,738)
- (3,170) (12,871)
(1,735) (3,634) (66)
(285) (1,530) (8,921)
Net Cash Used for Capital
and Related Financing Activities (14,590) (21,842) (32,445) Cash Flows from Investing Activities:
- - 1,499
(1,586) - -
- - -
- - (301)
1,282 553 -
(304) 553 1,198
Net Increase (Decrease) in Cash and Cash Equivalents
9,598 6,437 (2,118)
Cash and Cash Equivalents - October 1 48,641 21,716 171,068 Cash and Cash Equivalents - September 30 58,239$ 28,153$ 168,950$ Business-Type Activities - Enterprise Funds
Payments for Purchase of Investments
Receipt from Joint Venture
Payments of Interest
City of Long Beach
(In Thousands)
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended September 30, 2021
Net Cash Provided by (Used for) Operating Activities
Operating Grants Received from Other Governments
Payments of Principal on Bonds Payable
Proceeds from the Sale of Capital Assets
Receipt of Capital Grants
Net Increase (Decrease) in Cash and Cash Equivalents
Proceeds from the Sale of Investments
Receipts of Interest
Net Cash Provided by Investing Activities
Proceeds from Issuance of Long-Term Obligations
Receipts of Contributed Capital
Receipt of Federal Subsidy
Payments of Interest
Payments for Capital Acquisitions
Payments of Principal on Bonds Payable
Payments of Principal on Other Long-Term Obligations
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
457,190$ 158,056$ 925,115$ 5,092$
- 91,717 91,717 -
- 16,647 21,699 (8,274) - 760 760 508,513 (53,006) (51,175) (179,806) (47,812) (125,119) (117,867) (369,314) (64,919)
- - - (59,972) - - - (290,448) - - - (26,726) - (1,141) (1,141) - - (75,136) (82,648) -
- 1,452 15,323 1,443 (1,209) (1,416) (7,299) (1,613) 277,856 21,897 414,406 15,284
- - 1,036 166 - 91 162 984 - (29) (29) - - - (13,990) - - - (28,690) - - 5,992 43,910 (53,194) (19,797) (16,498) (65,946) 13,195
(19,797) (10,444) (63,547) (38,849) 33,046 - 33,180 -
- 1 256 954 545,000 - 545,000 -
- 22,062 26,144 -
- 3,469 3,469 -
- 1,156 1,156 -
(203,230) (48,544) (292,910) (24,375)
(24,470) (3,532) (44,043) (8,307) (472,050) - (477,485) (11,132) (46,727) (6,364) (63,827) (8,505) (168,431) (31,752) (269,060) (51,365)
- 1,238 2,737 -
- - (1,586) - 3,000 - 3,000 -
- (221) (522) (2,006) 4,866 - 6,701 -
7,866 1,017 10,330 (2,006)
97,494 (19,282) 92,129 (76,936)
643,593 393,802 1,278,820 225,313
741,087$ 374,520$ 1,370,949$ 148,377$
(continued)
Business-Type Activities - Enterprise Funds
42 The notes to the basic financial statements are an integral part of this statement.

RECONCILIATION OF OPERATING
INCOME (LOSS)TO NET CASH PROVIDED BY Gas Water Tidelands (USED FOR) OPERATING ACTIVITIES Utility Operating
Operating Income (Loss) 57,863$ 28,814$ (8,598)$ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by (Used for)
Operating Activities:

Depreciation and Amortization Expense 7,724 13,428 21,846 Other Income - 375 8,457 Other Expense (382) (792) (3,153) (Increase) Decrease in Accounts Receivable, Net (1,118) (1,447) (8,103) - - (991)
(Increase) Decrease in Amounts Due from Other Funds 304 896 9,483 (Increase) Decrease in Inventory (659) (45) - (Increase) Decrease in Other Assets 23,396 - - Increase in Other Non-Operating Assets - (2,498) - Increase (Decrease) in Accounts Payable 2,959 1,729 (4,694) Increase (Decrease) in Accrued Wages Payable (6,220) (7,251) (10,349) Increase (Decrease) in Amounts Due to Other Funds (1,735) 460 (4,574) Increase in Accrued Claims Payable - - - Increase in Unearned Revenues (450) 82 54 Increase (Decrease) in Collections Held in Trust (167) (143) 152 Total Adjustments 23,652 4,794 8,128 Net Cash Provided by (Used for) Operating Activities 81,515$ 33,608$ (470)$ NON-CASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:

Amortization of Bond Premium (Discount), Net 23,501$ -$ 481$ Accrued Capital Assets - - - Accrued Oilfield Abandonment Costs - - - Amortization of Deferred Outflows on Debt Refunding - - (441) Amortization of Deferred Inflows on Debt Refunding - - - Accrued Transfers to Other Fund - - - Accrued Transfers from Other Fund - (30,832) - Borrowing under Capital Lease or Other Long-term Debt - - - Discontinued Capital Projects - - - Business-Type Activities - Enterprise Funds
(Increase) Decrease in Amounts Due from Other Governments (Continued)
Utility
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
127,094$ 15,266$ 220,439$ 2,614$
172,827 18,782 234,607 30,289
(1,209) 1,564 9,187 1,443
- (1,416) (5,743) (1,613) 9,655 (8,263) (9,276) 3,805 - 12,097 11,106 -
- 387 11,070 6,376 - - (704) (259) (20,492) 6 2,910 29,369 - - (2,498) - (10,362) 2,773 (7,595) (13,827) (1,101) (14,491) (39,412) (22,625) (694) (2,423) (8,966) (17,245) (4,800) - (4,800) (3,651) 6,938 (1,094) 5,530 -
- (1,291) (1,449) 608 150,762 6,631 193,967 12,670
277,856$ 21,897$ 414,406$ 15,284$
15,014$ -$ 38,996$ -$
135,773 - 135,773 -
- 7,700 7,700 -
- - (441) - 1,254 - 1,254 -
21,732 - 21,732 -
- - (30,832) - - - - 99,287 839 - 839 - Business-Type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 43 Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
127,094$ 15,266$ 220,439$ 2,614$
172,827 18,782 234,607 30,289
(1,209) 1,564 9,187 1,443
- (1,416) (5,743) (1,613) 9,655 (8,263) (9,276) 3,805 - 12,097 11,106 -
- 387 11,070 6,376 - - (704) (259) (20,492) 6 2,910 29,369 - - (2,498) - (10,362) 2,773 (7,595) (13,827) (1,101) (14,491) (39,412) (22,625) (694) (2,423) (8,966) (17,245) (4,800) - (4,800) (3,651) 6,938 (1,094) 5,530 -
- (1,291) (1,449) 608 150,762 6,631 193,967 12,670
277,856$ 21,897$ 414,406$ 15,284$
15,014$ -$ 38,996$ -$
135,773 - 135,773 -
- 7,700 7,700 -
- - (441) - 1,254 - 1,254 -
21,732 - 21,732 -
- - (30,832) - - - - 99,287 839 - 839 - Business-Type Activities - Enterprise Funds
44 The notes to the basic financial statements are an integral part of this statement.

September 30, 2021
Private
Purpose Custodial
Trust Funds Funds
ASSETS:

Pooled Cash and Cash Equivalents 618$ 13,159 $ Non-Pooled Investments - 1,095
Non-Pooled Cash and Cash Equivalents - 8,719 Property Taxes Receivable - 147
Interest Receivable - 30
Accounts Receivable - 1,058
Prepaid Expense - 8
Land - 11,000
Total Assets 618 35,216
LIABILITIES:

Accounts Payable - 308
Total Liabilities - 308
NET POSITION:

Restricted for:

Miller Library Trust 613 -
Mayor's Fund for the Homeless 5 -
Oil Rights - 1,819
Special Assesment Districts - 10,950
Intermodal Container Transfer Facility - 6,500 Los Cerritos Wetlands Authority - 11,268 Other Custodial Funds - 4,371
Total Restricted Net Position
Private
Purpose Custodial
Trust Funds Funds
ADDITIONS:

Contributions -$ 4,730$
Taxes - 10,609
Grants - 356
Use of Money and Property - 234
Miscellaneous Revenue - 52
Total Additions - 15,981
DEDUCTIONS:

Administrative Expense 37 13
Payments to Bond Holders - 11,344
Payments to Others - 5,376
Total Deductions 37 16,733
Change in Net Position (37) (752)
Net Position, October 1 655 35,660
Net Position, September 30 618$ 34,908 $
City of Long Beach
Statement of Fiduciary Net Position
Fiduciary Funds
(In Thousands)
City of Long Beach
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended September 30, 2021
(In Thousands)
618$ 34,908 $
September 30, 2021
Private
Purpose Custodial
Trust Funds Funds
ASSETS:

Accounts Payable - 308
Total Liabilities - 308
NET POSITION:

Restricted for:

Contributions -$ 4,730$
Taxes - 10,609
Grants - 356
Use of Money and Property - 234
Miscellaneous Revenue - 52
Total Additions - 15,981
DEDUCTIONS:

NOTES TO THE

FINANCIAL

STATEMENTS
45 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 1 – REPORTING ENTITY
Organization
The City of Long Beach (City) operates under a City Charter originally adopted in 1921 and last amended in 2010. The City Charter establishes the current Mayor-Council-City Manager form of government, sets forth the powers and duties of the Mayor and City Council, and defines the roles, duties, and form of organization of the City’s various boards, commissions, and other offices. The City is divided into nine council districts, with Councilpersons elected to serve within their respective districts. The Mayor, City Auditor, City Attorney, and City Pros ecutor are all elected Citywide. The City Council appoints a City Manager who serves at the discretion of the Council.

Financial Reporting Entity
The City provides a full range of municipal services including police and fire, health and social services, library, parks and recreation, planning and community development, and public works improvements. The City also provides for sanitation, gas, water, and towing services. The City operates its own airport, five golf courses, international harbor facility, and a tidelands trust area (consisting of the beaches, Convention Center, Queen Mary, Rainbow Ha rbor, marinas, and oil extraction administrative operations), under a trust agreement with the State of Ca lifornia. It is the City’s policy to establish fees and charges designed to recover the full cost of providing services, including capital costs such as depreciation and debt service. Accordingly, the financial activities of these operations are accounted for as enterprise funds.

The accompanying basic financial statements pres ent the financial activity of the City and its component units, entities for which the primary governm ent is considered to be financially accountable.

Blended component units, although separate legal entitie s, are in substance part of the government’s operations. The City’s discretely presented component unit represents a legally separate organization for which the nature and significance of its relationship to the primary government are such that exclusion would cause the City’s reporting entity to be misleading or incomplete. Brief descriptions of these related blended and discretely presented component financial reporting units/entities and the method of incorporating their financial information in the accompanying basic financial statements are as follows:

Blended Component Entities
Housing Authority of the City of Long Beach (Authority) is a public agency created by action of the City Council in 1969 to administer housing assistance programs for qualified residents. The Authority is governed by an 11-member Board of Commissioners, comprised of the nine City Council members and two representatives elected by housing assistance be nefit recipients. The Authority’s administrative functions are directed and performed by City employees. The financial activity of the Authority is included in the Housing Assistance Special Revenue Fund.

Successor Agency to the Redevelopment Agency of the City of Long Beach (Agency): Consistent with the dissolution legislation, the Redevelopment Agency ceased operation effective February 1, 2012. The City exercised its option to become the Successor Agency for the former Redevelopment Agency and the Housing Successor Agency (HSA) for the Low and Moderate Income Housing function. The City is responsible for the winding down of Agency business to include the completion of ongoing projects and the disposition of assets. As the HSA, the City is responsible for executing the former mission of the Low and Moderate Income Housing function as long as f unding permits. Like its predecessor, the Agency is considered a blended component unit of the City. The financial activities of the Agency were blended with those of the City in the accompanying basic fina ncial statements and are reported as the Agency’s Capital Projects and Debt Service Funds.
46 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Long Beach Community Investment Company (Company) is a non-profit corporation formed by action of the City Council in 1987 to plan, direct, perform, and assist the City in meeting its responsibility to provide adequate housing to low-and-moderate-income re sidents, senior citizens, and disabled persons.

The Company provides services that indirectly benefit the City even though it does not provide services directly to the City. The City Council appoints the Company’s Board of Directors, approves the Company’s bylaws and changes thereto, approves the Company’s budget, and has ultimate authority over the Company’s activities. In addition, the City provides all staffing, facilities, and funding for the Company’s operations and the City’s management has operational responsibility for the Company. The financial activities are blended with those of the City in the accompanying basic financial statements and are accounted for in the Housing Development Fund. By electing to form a non-profit corporation to carry out functions that would ordinarily revert to the City, it is the City Council’s intention that a greater potential for public/private partnerships be created.

Southeast Resource Recovery Facility Authority (SERRF) is a joint powers authority between the City and the Los Angeles County Sanitation District Number 2. SERRF was created to finance the construction of a waste-to-energy facility through the issuance of lease revenue bonds which have been fully paid off.

The City Council appoints the SERRF’s members of the Board and has authority to remove appointed members of the Board at will. The City Council also has the ability to appoint, hire, reassign, or dismiss those persons responsible for the day-to-day operations and management of the SERRF. The financial activities of SERRF are included in the Solid Waste Management Enterprise Fund.

Non-profit Financing Corporations and Authorities
The financial operations of several non-profit fina ncing corporations and authorities organized for the purpose of financing various capital improvements within the City or the refinancing of debt are also included as blended component units in the accompanying basic financial statements. The activities of the organizations listed below are generally restricted to financing City-related capital improvements. In this regard, the City Council either serves as the governing board or appoints the voting majority of the governing board, and otherwise exercises significant oversight and direct operational and financial control over these entities. Therefore, such entities meet es tablished criteria for inclusion in the accompanying basic financial statements.

For the most part, these non-profit corporations enter into capitalizable leases with the City. However, for financial reporting purposes, such lease trans actions are eliminated, and the related financing obligations and related capital assets are carried at cost in the accompanying basic financial statements.

There is no requirement to separately issue financial statements for these component units.

The non-profit financing corporations established by the City are as follows:

Entity Fund Type Affected Funds
Long Beach Financing Authority Governmental Custodial Funds Long Beach Bond Financing Authority Gove rnmental and Internal Service Funds Business-type Enterprise Funds
Governmental Funds
Long Beach Capital Improvement Company Business-type Enterprise Funds Finance Authority of Long Beach Governmental and Internal Service Funds Business-type Enterprise Funds
Governmental Funds

47 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Discretely Presented Component Unit
The Long Beach Public Transportation Company (L BT) is a non-profit corporation formed in 1963 to purchase the local public transit system from a private carrier. The City is the LBT’s sole stakeholder.

The LBT is governed by a seven-member Board of Directors (Board), which provides broad policy and financial decisions, setting direction for management. The Mayor, with the approval of the City Council, appoints residents of the community to the Board to serve overlapping four-year terms. In addition, two designees of the City Manager’s Office serve as ex-officio Board members but do not have voting authority. The LBT’s mission is “to provide public transit services that enhance and improve the quality of life for the people in our community.”
The LBT’s governing body does not share common membership with that of the City and its service area overlaps other communities. The financial operations of the LBT are reported as a separate column in the basic financial statements to emphasize that the LBT is legally and operationally separate from the City. Separate financial statements can be obtain ed from the Senior Vice President and Chief Financial Officer, Long Beach Transit, P.O. Box 731, Long Beach, California 90801.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Government-wide and Fund Financial Statements
The Statement of Net Position and the Statement of Activities report information on all of the non- fiduciary activities of the primary government and its component units. The effect of interfund activity has been removed from these statements with the ex ception of exchange or exchange-like transactions between governmental functions that if eliminated w ould distort direct cost and program revenue.

Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely on fees and charges for services.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business -type activities and for each function of governmental activities. Direct expenses are those that are specifically associated w ith a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include: (a) charges paid by the recipients for goods and services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program, and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the accompanying government-wide financial statements.

Major individual governmental funds and major indivi dual enterprise funds are reported as separate columns in the accompanying fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus is concerned with wh at financial transactions and events, the inflow and outflow of resources, will be recognized in the accounting records and reported in the financial statements. The term "basis of accounting" is used to describe the timing of recognition or when the effects of transactions or events should be recognized.

The government-wide, proprietary, fiduciary private purpose trust and custodial funds financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and an expense is recorded when a liability is incurred, 48 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met and if collection is expected within the next fiscal year.

The governmental funds financial statements are prepared on a current financial resources measurement focus and modified accrual basis of accounting. To conform to the modified accrual basis of accounting, certain modifications must be made to the accrual method. These modifications are outlined below:
 Revenue is recorded when it becomes both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, and except for reimbursement-basis government revenues that are recognized when earned and collected within a y ear, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes and taxpayer- assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net of estimated refunds and uncollectible amounts, and interest associated with the current fiscal period are all considered susceptible to accrual and have been recognized as revenues of the current fiscal period.  An expenditure is recorded when the related liability is incurred. Principal and interest on long-term debt are recorded when payment is due.
 Expenditures are presented in functional categories such as general government and public safety. For the City, the amounts presented include an allocation of indirect costs.  Disbursements for the purchase of capital assets providing future benefits are considered expenditures.

Bond proceeds are reported as other financing sources.

With this measurement focus, operating statemen ts present increases and decreases in net current assets and unrestricted fund balance that is either committed, assigned, or unassigned, as a measure of available spendable resources. This is the traditiona l basis of accounting for governmental funds and is the manner in which these funds are normally budgeted. This presentation is deemed most appropriate to demonstrate both legal compliance and how the City’s actual revenues and expenditures conform to the annual budget. Since the governmental funds financial statements are presented on a different basis than the governmental activities column of the governme nt-wide financial statements, a reconciliation is provided immediately following each fund statem ent. These reconciliations briefly explain the adjustments necessary to transform the fund financial statements into the governmental activities column of the government-wide financial statements.

The City reports the following major governmental and enterprise funds:

Major Governmental Funds
The General Fund is used to account for financial resources applicable to the general governmental operations of the City, which are not required to be accounted for in another fund.

The General Capital Projects Fund was established to account for the acquisition, construction, maintenance and improvement of facilities and infrastructure. These activities are financed by grants, bond proceeds, gasoline and voter approved transportation taxes, and operating transfers from other City funds.

The Housing Assistance Special Revenue Fund is used to account for programs administered by the City's Housing Authority under regulations of the U.S. Department of Housing and Urban Development (HUD).

49 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Major Enterprise Funds
The Gas Utility Fund is used to account for the activities associated with the transmission and distribution of natural gas to the City’s customers by the Energy Resources Department. The Long Beach Financing Authority Gas Prepay Function is combined with the City’s Gas Operating Function for the purpose of financial statement presentation.

The Water Utility Fund is used to account for the activities associated with the sourcing, purification, and delivery of water to the City’s customers by the Water Department.

The Tidelands Operating Fund is used to account for operations, maintenance, and development of the beaches, marinas, Convention Center, Queen Mary, and the Aquarium of the Pacific.

The Harbor Fund is used to account for the operations and development of the Tidelands area harbor district, commonly referred to as the Port of Long Beach (Harbor).

The City also reports the following other fund types:

Internal Service Funds account for a variety of services provided to other departments or agencies of the City on a cost-reimbursement basis. These services include civic center and related maintenance and financing, information technology, fleet serv ices, workers’ compensation, general liability, unemployment insurance, and employee benefits.

Fiduciary Funds include private trust and custodial funds. Private trust funds account for assets and activities restricted to a specific purpose in accordan ce with a trust agreement. These include the Miller Library and Mayor’s Fund for the Homeless, from which both principal and interest may be spent for the purposes outlined in the trusts. Custodial funds account for assets held by the City as an agent for individuals, private organizations, and other governmental units. The City’s Custodial funds include Los Cerritos Wetlands Authority, which holds land and cash for the protection and restoration of the Los Cerritos Wetlands area, and Special Asse ssment Districts that issue various debts for the benefit of Long Beach area property owners.

Amounts reported as program revenues include charge s to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, operating grants and contributions that are restricted to meeting the operational requirements of a particular function or segment, and capital grants and contributions, including special assessments, that are restricted to meeting the capital requirements of a particular function or segment. Internally dedicated resources, including all taxes, are reported as general revenues rather than as program revenues.

Business-type activities distinguish operating re venues and expenses from non-operating items.

Operating revenues and expenses generally result from providing services along with producing and delivering goods in connection with a business-type activity’s principal ongoing operations. The principal operating revenues of the City’s business-type activities are charges for services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

City of Long Beach Investment Pool
The City pools the cash resources of its various f unds into the City of Long Beach Investment Pool (Pool). The Pool is an internal investment pool that is used to facilitate the management of cash and provide income through conservative investment activities. The Pool is used as a demand deposit account by the various funds.
50 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

The Pool’s investments are designed to meet any demand for funding by using a combination of short-term on demand accounts and highly liquid i nvestments. Interest in come arising from pooled investments is apportioned to the participating funds based on the relationship of their respective daily cash balances to the total of pooled cash and investments.

One of the Pool’s highly liquid investments is the Local Agency Investment Fund (LAIF), a money market like external investment pool. The fair value of the City’s investment in the LAIF pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF, for the entire LAIF portfolio (in rela tion to the amortized cost of that portfolio). The City is a voluntary participant in the LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

Cash Equivalents
The governmental and business-type fund statements present all cash, cash equivalents, and investments as cash and cash equivalents regardless of their maturity. The government-wide statements do not present the Pool as a demand deposit account and thus all cash, cash equivalents, and investments with a maturity of less than 90 days of the balance sheet date are presented as cash. Cash equivalents and investments with a maturity between 90 days and one year of the balance sheet date, excluding those restricted for long-term purposes, are presented as investments, and all other cash equivalents and investments are presented as long-term investments.

Fair Value
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction. The City categorizes investments and derivative instruments reported at fair value within the fair value hierarchy established by generally accepted accounting principles.

The hierarchy is based on the valuation inputs used to measure the fair value of the asset, as follows:

Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs.

The City’s investments, including the individual holdings of the Pool, are valued at fair value and consist primarily of U.S. Treasury Notes, Federal Agency Securities and units of the LAIF. See note 4 and note 12 to the basic financial statements for more information on the City’s investments and derivative instruments, respectively.

Receivables and Payables
Activities between funds that represent lending/borrowi ng arrangements are referred to as either “due to/from other funds” for the current portion of interfund loans or “advances to/from other funds” for the non-current portion of interfund loans. Any residual balances between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable, available financial resources. Trade and property tax receivables are shown net of any provisions for uncollectible accounts.
51 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Inventories
Inventory and supplies are accounted for using the consumption method and are stated at average cost, applied on a first-in, first-out basis.

Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and are reported in the applicable governmental or business-type activities columns in the accompanying government-wide financial statements.

The City defines capital assets as items with an initial, individual cost of more than ten thousand dollars (five thousand dollars for grant-funded assets) an d an estimated useful life in excess of one year.

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets and donated works of art and similar items are recorded at acquisition value (an entry price) at the date of donation. The costs of normal maintenance and repairs that do not add to the value or materially extend asset lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest costs incurred during the construction phase of capita l assets of business-type activities are included as part of the capitalized value of the constructed asset.

Capital assets of the primary government are depreciated on a straight-line basis, over the estimated useful lives of the assets, as follows:

Land Improvements 15 - 35 years
Buildings and Utility Plant 20 - 50 years
Structures and Facilities 10 - 35 years
Infrastructure 20 - 50 years
Automobiles 2 - 6 years
Automotive Equipment 10 - 20 years
Software, Machinery and Equipment 5 - 20 years
Office Furniture, Fixtures, and Equipment 3 - 20 years
Patent 20 years
Land parcels held for resale are recorded at the lower of cost or estimated net realizable value, and are adjusted for estimated declines in fair value. All la nd held for resale by the Successor Agency is valued at $0 as the proceeds from the sale of this land are remitted to the County for distribution to various agencies including the City.

Long-Term Obligations
In the government-wide financial statements and pr oprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable statement of net position.

Initial-issue bond premiums and discounts are amortized using the effective-interest-rate method. Bonds payable are reported net of the unamortized portion of applicable premium, discount, and gain or loss on refunding. Bond issuance costs, including underwriters’ discount, are expensed during the period issued.

Amortization of bond premiums or discounts, and the gain or loss on refunding are generally included in interest expense unless otherwise noted.

In the City’s governmental fund statements bond premiums, discounts, and issuance costs are recognized during the period the debt is issued. The face amount of debt issued has been reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs are reported as debt service expenditures. 52 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

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

Pension liabilities are being funded over time through burden rates, applied as a percentage of current pensionable salaries, and charged to the various City funds including governmental funds.

Employee Benefits, Compensated Absences and Termination Benefits Historically, benefits for City employees have been paid and compensated leave balances at year-end have been reported in the in the City’s Employee Benefits Internal Service Fund (EBF). Effective October 1, 2020, the City changed its accounting policy to report the compensated leave balances of the City employees in the government-wide financial statements for reporting consistency of governmental funds long-term employee benefits.

The adjustment to the beginning EBF net position amount is summarized below (in thousands):

October 1, 2020, as previously reported (42,659)$
Adjustment due to change of accounting principle 155,200 October 1, 2020, as adjusted 112,541$
For the fiscal year ended September 30, 2021, a proprietary fund liability is accrued for leave benefits in the respective fund’s statement of net position. The City’s policy is to pay all accumulated vacation and holiday pay when an employee retires or terminates. Beginning August 1, 2007, management employees, upon retirement, may have 75 percent of their outstanding vacation leave converted to sick leave. Vacation and holiday benefits are recognized when earned. The City also allows retirees the option of purchasing additional pension benefits from CalPERS with their unused sick leave balances.

The City makes annual contributions in varying amounts to deferred compensation plans for certain employee groups who serve in sensitive, confidential capacities. No other City employees received such benefit.

Accumulated sick leave becomes vested only when an employee meets the City’s minimum requirements for retirement. Accumulated sick leave is forfeited upon termination for reasons other than retirement. In accordance with the City’s Personnel Ordinance, upon retirement from the City, the City allows retirees, their spouses, and eligible dependen ts to use the cash value at retirement of the retiring employee’s accumulated unused sick leave to pay fo r health, dental, and l ong-term care insurance premiums until such time as the unused sick leave is exhausted.

The conversion of unused sick leave for postemployment benefits is reflected as accrued compensated absences benefits and accrued as other post-employ ment benefits (OPEB) liability in the accompanying financial statements. The employee benefits and OP EB liability of $6.3 million associated with governmental funds will be reported within the government-wide financial statements. These liabilities are being funded over time through burden rates, applied as a percentage of current productive salaries, and charged to the various City funds.
53 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

As of September 30, 2021, the City has recorded compensated absence and OPEB liabilities in the following categories and funds (in thousands):

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow resources (expense/expenditure) until then.

In addition to liabilities, the statement of financ ial position reports a separa te section for deferred inflows of resources. This separate financial elemen t, deferred inflows of resources, represents an acquisition of net position that applies to a future pe riod and so will not be recognized as an inflow of resources (revenue) until that time, except for pension and OPEB related deferred inflows of resources, which will be recognized as a credit to expense. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

Net Position and Fund Balance
In the government-wide financial statements and pr oprietary fund financial statements, net position is reported in three categories: net investment in capital assets; restricted net position; and unrestricted net position. Restricted net position represents amounts restricted by parties outside of the City, such as creditors, grantors, or laws and regulations of other governments. Nonexpendable portions of the private- purpose trust funds are reported as held in trust. All other net position is considered unrestricted. When both the restricted and unrestricted components of net position are available, restricted resources are used first and then unrestricted resources are used to the extent necessary. At September 30, 2021, the restricted net position balances were $475.7 million and $326.7 million for governmental activities and business type activities, respectively.

Total OPEB
Recorded In Vacation Sick Liability Total
IS Funds 6,088$ 8,562$ 472$ 15,122$ Enterprise Funds 15,287 37,236 2,055 54,578 Total 21,375$ 45,798$ 2,527$ 69,700$ Reported In Government-wide Financial Statements as
Total OPEB
Recorded In Vacation Sick Liability Total
Governmental Activities 50,666$ 121,930$ 6,730$ 179,326$ Business-Type Activities 15,287 37,236 2,055 54,578 Total 65,953$ 159,166$ 8,785$ 233,904$ Reported in Fund Financial Statements as
Employee Benefits
Compensated Absences
54 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Fund balance reported in governmental funds is calculated as assets and deferred outflows of resources less liabilities and deferred inflows of resources. There are five categories of fund balances, each of which is based upon the extent to which the City is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The fund balances reported on the governmental fund statements consist of the following categories:

Committed fund balance classifications may be created by formal action of the City Council through either adopted resolution or ordinance. Commitments can be modified or rescinded through the same formal action that created the commitment. Both of these actions are binding upon the City.

Consistent with the City’s a dopted Fund Balance Policy, assignments may be designated for a purpose by the City Council or, if delegated, the Council’s designee who, for the purpose of this disclosure, is the City Manager. It is a policy goal of the City Council to maintain an overall unrestricted fund balance of no less than two months or 16.7 percent of General Fund ongoing operating expenditures, including transfers. This percentage includes committed, assigned, and unassigned balances.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the City’s policy is to apply restricted fund balance first. When expenditures are incurred for purposes for which committed, assigned, or unassigned fund balances are available, the City’s policy is to apply committed fund balance first, then assigned fund balance, and finally unassigned fund balance.

Property Tax Calendar
Under the State Constitution, the property tax rate is limited to one percent of assessed value, but may be adjusted for specific voter-approved indebtedness. Property taxes are levied by the Los Angeles County (County) Tax Assessor and shared among all other local taxing authorities within the City. Accordingly, the County collects property taxes and distributes such taxes on the basis of the taxing authorities’ tax rate percentages, allowing for adjustments as authorized for voter-approved debt.

1. 1. Restricted by state statute;

2. Unspent bond proceeds;

3. Grants earned but not spent;

4. Debt covenants;

5. Taxes dedicated to a specific purpose;

6. Revenues restricted by enabling
legislation.

1. The City Council has decided to set aside
$1 million for a new senior center.

2. By resolution, e.g., 15% of Sales tax has
been set aside to fund safety operations.

Assigned 1. The City Council or its designee has
formalized an intended use of fund
balance or positive residual balances in
governmental funds other than the general
fund.

Unassigned
Fund balance should be reported as restricted
when constraints placed on the use of
resources are either (a) Externally imposed
by creditors, grantors, contributors, or laws
or regulations of other governments; or (b)
Imposed by law through constitutional
provisions or enabling legislation.

Examples
Nonspendable Amounts that cannot be spent because they
are either (a) not in spendable form or (b)
legally or contractually required to be
maintained intact.

Definition
Inventories, prepaid items, long-term
receivables, and permanent principal of
endowment funds.

Amounts that are constrained by the
government’s intent to be used for specific
purposes, but are neither restricted nor
committed.

Classification
Restricted
Unassigned fund balance is the residual classification for the General Fund. This is fund balance that has not been reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other governmental funds would report deficit fund balances as unassigned.

Used for specific purposes pursuant to
constraints imposed by formal action of the
government’s highest level of decision-
making authority.

Committed
Unrestricted
55 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Secured property taxes are levied during September of every year and become a lien on real property on January 1 of the calendar year for which taxes are levied. These tax payments can be made in two equal installments: the first is due November 1st and the second is due February 1st. The City recognizes property tax receivable when levied and defers the portion that is neither intended nor available to finance current year expenditures.

Budgetary Principles
The City Council adopted the fiscal year 2021 budget prior to October 1, 2020 for all funds except for fiduciary funds. The City Council may amend the budget by motion during the fiscal year. The City Manager may transfer appropriations within the departments or within a given fund, provided that the total appropriations at the fund level and at the department level do not change. Transfers of appropriation between funds or departments require City Council approval. Unencumbered appropriations lapse at the end of the fiscal year.

Budgeted appropriations are pr esented in the accompanying financial statements on a non-GAAP accrual plus encumbrances budgetary basis with the exception of transactions related to long-term debt, which are recorded on a cash basis. Budgeted revenues are presented on a GAAP based budgetary basis as revenues are recognized when they become measurable, available and earned. Total expenditures may not exceed fund appropriations, and total expenditures for each department may not exceed departmental appropriations. For budgetary purposes, the City records an encumbrance as a charge against appropriations in the accounting period in which a purchase order is issued, rather than in the accounting period when goods or services are received.

Subsidence
In accordance with State legislation, the City established a Reserve for Subsidence Contingencies to indemnify the City, State, and contractors for claims or costs arising from subsidence alleged to result from oil operations. As of September 30, 2021, the reserve balance within the Subsidence Fund is $191.2 million. As part of the adoption of the State’s 2005 fiscal year budget, 100 percent of this fund’s interest earnings for calendar years 2004 and 2005 were eligible to be loaned to the City’s General Fund without interest and with repayment commencing in fiscal year 2008 in equal annual installments of $500 thousand for up to 20 years. This action was taken to assist the City in making $5 million contributions to the State in fiscal years 2005 and 2006. At September 30, 2021, the remaining loan balance was $614 thousand.

Implementation of New Accounting Pronouncements
The City applies all Governmental Accounting Standards Board (GASB) Statements and Interpretations. Application of the following Statemen ts was effective for the City’s fiscal year ended September 30, 2021:

In August of 2018, GASB issued Statement No. 90, Majority Equity Interests – an Amendment of GASB Statements No. 14 and No. 61 . The objectives of this Statement are to improve consistency in the measurement and comparability of the financial statement presentation of majority equity interests in legally separate organizations and to improve the relevance of financial statement information for certain component units. The Statement is effective for reporting periods after December 31, 2020. Application of this Statement did not have a material impact to the City’s financial statements for the fiscal year ended September 30, 2021.

In June of 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 . The requirements in paragraph 6-9 of this Statement are effective for fiscal years beginning after June 15, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 56 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

2021. Early application of this Statement did not have a material impact to the City’s financial statements for the fiscal year ended September 30, 2021.

In October 2021, GASB issued Statement No. 98, The Annual Comprehensive Financial Report. The objectives of this Statement is to address references in authoritative literature to the term comprehensive annual financial report. The Statement is effectiv e for reporting periods after December 15, 2021. The City elected to early implement this Statement for the fiscal year ended September 30, 2021.

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

In June of 2017, the GASB issued Statement No. 87, Leases . This Statement is effective for the City's fiscal year ending September 30, 2022.

In May of 2019, GASB issued Statement No. 91, Conduit Debt Obligations . This Statement is effective for the City' s fiscal year ending September 30, 2023.

In January of 2020, GASB issued Statement No. 92, Omnibus 2020. This Statement is effective for the City' s fiscal year ending September 30, 2022.

In March of 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates . This Statement is effective for the City' s fiscal year ending September 30, 2022.

In March of 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements . This Statement is effective for the City' s fiscal year ending September 30, 2023.

In May of 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This Statement is effective for the City' s fiscal year ending September 30, 2023.

Reclassifications
Certain accounts presented in the fiscal year 2021 fi nancial statements have been reclassified to be consistent with the current year’s presentation. Such reclassifications have no effect on the net change in financial position and net position as previously reported.

Estimates
The preparation of the City’s basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

57 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 3 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL

STATEMENTS
Amounts reported for governmental activities in the statement of net position are different from those reported for governmental funds in the balance sheet . The following table provides a reconciliation of those differences (in thousands):

(continued)
Total Long-term Total
Governmental Assets Internal Eliminations Statement of
Funds and Service and Net Position
(Page 28) Liabilities Funds Conversions (Page 25)
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 468,397$ -$ 146,799$ (507,349)$ 107,847$ Non-Pooled Cash and Cash Equivalents 22,932 - 1,578 - 24,510 Pooled Investments - - - 203,964 203,964 Interest Receivable - 168 - - 168 Property Taxes Receivable, Net 113,077 - - (5,191) 107,886 Accounts Receivable 33,893 - 1,532 (35,425) - Due from Other Governments 142,529 - 30 - 142,559 Due from Other Funds 38,017 - 27,333 (65,350) - Allowance for Receivables (14,932) - (24) 14,956 - Accounts and Loans Receivables, Net - - - 25,660 25,660 Internal Balances - - - 10,093 10,093 Deposits - - 9,365 (9,365) - Inventory 102 - 3,119 - 3,221 Other Assets 3,722 - - 9,365 13,087 Advances to Other Funds 3,809 - 5,687 (9,496) - Land Held for Resale 5,874 - - - 5,874 Other Noncurrent Assets:

Noncurrent Pooled Investments - - - 303,385 303,385 Other Noncurrent Receivables 220,992 - - - 220,992 Capital Assets:

Nondepreciable - 327,078 42,279 - 369,357 Depreciable, Net - 247,806 434,058 - 681,864 Other Noncurrent Assets - - 6,375 - 6,375 Total Assets 1,038,412 575,052 678,131 (64,753) 2,226,842 Deferred Outflows of Resources - - 9,351 89,960 99,311 Total Assets and Deferred Outflows of Resources 1,038,412$ 575,052$ 687,482$ 25,207$ 2,326,153$ 58 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Total Long-term Total
Governmental Assets Internal Eliminations Statement of
Funds and Service and Net Position
(P age 28) Liabilities F unds Conversions (Page 25)

LIABILITIES
Current Liabilities:

Accounts Payable 42,435$ -$ 16,141$ -$ 58,576$ Accrued Wages and Benefits Payable 13,537 - 7,038 - 20,575 Accrued Interest Payable - 1,955 773 - 2,728 Due to Other Governments 258 - - - 258 Due to Other Funds 81,499 - 6,521 (88,020) - Unearned Revenue 67,530 (7,147) - 12,600 72,983 Deposits and Collections Held in Trust 8,503 - 4,097 (12,600) - Advances from Other Funds 5,523 - - (5,523) - Long-term Liabilities Due Within One Year:

Bonds Payable - 21,703 1,612 (23,315) - Notes Payable - 1,588 - (1,588) - Capital Leases Payable - - 9,130 (9,130) - Other Long-term Obligation - - 5,189 (5,189) Environmental Remediation - 3,376 175 (3,551) - Accrued Self Insurance Claims Payable - - 31,605 (31,605) - Employee Benefits Payable - 51,022 - (51,022) - Employee Benefits and Accrued LT Obligations - - 6,795 86,178 92,973 Total LT Debt and Other LT Obligations - - - 39,222 39,222 Long-term Liabilities Due Beyond One Year:

Bonds Payable - 218,460 16,340 (234,800) - Notes Payable - 7,069 - (7,069) - Capital Leases Payable - - 29,813 (29,813) - Other Long-term Obligation - 23,000 284,576 (307,576) - Police and Fire Annuities Payable - 4,436 - (4,436) - Estimated Oil Field Abandonment Costs Payable - 23,070 - (23,070) - Enviromental Remediation - - 725 (725) - Accrued Self Insurance Claims Payable - - 144,780 (144,780) - Employee Benefits Payable - 106,924 7,855 (114,779) - Total OP EB Liability - 6,258 472 - 6,730 Net P ension Liability - 342,262 33,434 - 375,696 Employee Benefits and Accrued LT Obligations - - - 287,790 287,790 Total LT Debt and Other LT Obligations - - - 579,258 579,258 Total Liabilities 219,285 803,976 607,071 (93,543) 1,536,789 Deferred Inflows of Resources 328,187 - 31,266 157,925 517,378 Fund Balance / Net Position
Total Fund Balance / Net Position 490,940 (228,924) 49,145 (39,175) 271,986 Total Liabilities, Deferred Inflows and
Fund Balance / Net Position 1,038,412$ 575,052$ 687,482$ 25,207$ 2,326,153$ 59 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Amounts reported for governmental activities in th e statement of activities are different from those reported for governmental funds in the statement of revenues, expenditures and changes in fund balances.

The following table provides a reconciliation of those differences (in thousands):

Note: Amounts reflected in the internal service funds column are net of all eliminations and allocations to business-type activities.

Total Debt and Reclass Statement
Governmental Capital Internal and of
Funds Related Service Adjust- Activities
(Page 30) Transactions Funds ments (Pages 26 - 27)
Revenues:

Taxes 455,674$ -$ -$ (323)$ 455,351$ Franchise Fees 23,734 - - - 23,734 Licenses and Permits 47,010 - - (47,010) - Fines and Forfeitures 14,395 - - (14,395) - Use of Money and Property /
Unrestricted Investment Earnings 33,846 - 1 (30,351) 3,496 From Other Agencies 428,457 - - (428,457) - Charges for Services 41,676 - - (41,676) - Other 11,444 - - (11,444) - Program Revenue:

Charges for Services - - 5,787 145,061 150,848 Operating Grants and Contributions - - - 352,336 352,336 Capital Grants and Contributions - - - 76,033 76,033 Other Financing Sources :

Proceeds from Sale of Ca pital Asset 1,539 (1,539) - - - Debt Issuance 19,765 (19,765) - - - Premium on Debt Issuance 4,170 (4,170) - - - Transfers, Net 34,715 - (39,999) - (5,284) Total Revenues 1,116,425 (25,474) (34,211) (226) 1,056,514 Expenditures / Expenses:

Current:

Legislative and Legal 16,537 (3,569) 90 - 13,058 General Government 41,833 (6,292) 1,023 - 36,564 Public Safety 423,769 (112,358) 522 - 311,933 Public Health 94,751 (35,484) 749 - 60,016 Community and Cultural 222,778 (5,943) (182) 728 217,381 Public Works 67,115 96,851 (763) - 163,203 Oil Operations 2,446 1,233 - - 3,679 Capital Improv ements 102,712 (102,712) - - - Debt Service:

Principal 22,159 (22,159) - - - Interest on Long-Term Debt 11,970 (2,086) 9,897 - 19,781 Debt Administration Fees 26 (26) - - - Issuance Costs 410 - - (410) - Other Financing (Uses):

Pymt Refunded Bond Escrow Agent 26,300 - - (26,300) - Total Expenditures / Expenses 1,032,806 (192,545) 11,336 (25,982) 825,615 Net Change in Fund Balances 83,619$ 167,071$ (45,547)$ 25,756 $ 230,899$ 60 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 4 – CASH AND INVESTMENTS

Cash and investments as of September 30, 2021 are classified in the accompanying financial statements as follows (in thousands):

A breakdown of cash, cash equivalents, and investments between the basic financial statements and the fair value of the investment portfolio at September 30, 2021 is as follows (in thousands):

Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements and authorized by the City Council.

Investments with Fair Values Highly Sensitive to Interest Rate Risk The City had no investments that were highly sensitive to market interest rate changes as of September 30, 2021. Highly sensitive investments are investment s whose sensitivity to market interest rate fluctuations are not fully addressed by use of one of the five methods for reporting interest rate risk.

Investments Authorized by the California Government Code and the City’s Investment Policy The table on the following page identifies the inve stment types that are authorized by the City's investment policy for the City’s Investment Pool. The table also identifies certain provisions of the City's investment policy that address interest rate risk, cred it risk, and concentration of credit risk. This table does not include debt proceeds held by bond trustees that are governed by the provisions of debt agreements.

Cash and Investments
Pooled cash and investments 1,964,378$
Non-pooled cash and investments 122,681
Total cash and investments 2,087,059$
Cash and investments as of September 30, 2021 consist of the following:

Cash and deposits 206,578$
Investments 1,880,481
Total cash and investments 2,087,059$
Governmental Business-type Fiduciary
Activities Activities Funds Total
Pooled Cash and Cash Equivalents 107,847$ 234,104$ 13,777$ 355,728 $ Non-Pooled Cash and Cash Equivalents 24,510 35,544 8,719 68,773 Pooled Investments 203,964 442,744 - 646,708 Non-Pooled Investments - - 1,095 1,095 Noncurrent Pooled Investments 303,385 658,557 - 961,942 Restricted Assets:

Non-Pooled Investments - 52,813 - 52,813 Total Cash and Investments 639,706$ 1,423,762$ 23,591$ 2,087,059 $ 61 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of th e ways that the City manages its exposure to interest rate risk is by purchasing a combination of shor ter term and longer term investments and timing cash flows from maturities so that a near-level portion of the portfolio is maturing or coming closer to maturity over time to provide the cash flow and liquidity needed for operations.

At September 30, 2021, the weighted average maturity in years for the City’s pooled investments was

1.44 years. The following schedule indicates the interest rate risk of the City’s investments as of September 30, 2021 (in thousands):

Maximum Maximum
Maximum Percentage Investment
Maturity of Portfolio in One Issuer
Bonds Issued by the City 5 years * 30% None
U.S. Treasury Notes, Bonds, or Bills 5 years * None None Registered State Warrants, Treasury Notes,
or Bonds of the state of California 5 years * 30% None
Local Agency Bonds 5 years * 30% None
Federal Agency Securities 5 years * None None
Bankers' Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 5%
Negotiable Certificates of Deposit 5 years * 30% 10%
Time Certificates of Deposit 5 years * 100% 10%
Repurchase Agreements 90 days 100% None
Reverse Repurchase Agreements 92 days 20% None
Securities Lending Program 92 days 20% None
Medium-Term Notes 5 years * 30% 5%
Money Market Mutual Funds N/A 20% 20%
Local Agency Investment Fund (LAIF) (per account) N/A None $75 million Asset-Backed Securities 5 years 20% None
Mortgage-Backed Securities 5 years 20% None
Supranational Bonds 5 years 30% 5%
* Max im um m aturity of five (5) years unless a longer m aturity is approved by the City Council, either specifically or as part of an investm ent program , at least three (3) m onths prior to purchase.

Authorized Investment Type
Fair Value
Pooled Cash and Investments
Money market mutual funds 6,437$ -
U.S. Treasury notes 1,234,191 1.70
Federal agency securities 276,744 2.15
Corporate notes 21,316 4.22
Local Agency Investment Fund (LAIF) 221,623 0.88
Subtotal Pooled Cash and Investments 1,760,311
Cash and deposits 204,067 N/A
Total Pooled Cash and Investments 1,964,378$
Non-Pooled Cash And Investments
Money market mutual funds 67,557$ -
U.S. Treasury notes 25,528 0.78
Guaranteed Investment Contracts (GIC) 27,085 16.14 Subtotal Non-Pooled Cash And Investments 120,170
Cash and deposits 2,511 N/A
Total Non-Pooled Cash And Investments 122,681$
Weighted Average
Investment Type Maturity (in years)
62 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The minimum rating requirements for commercial paper, asset-backed securities, and medium-term notes is an A rating. Mortgage-backed security issuers must have a minimum AAA rating. State Warrants, State Treasury Notes, or bonds of the State are to be rated at a minimum of A1 / Sp-1 for short-term investments and Aa/AA for long-term investments.

The following are the actual ratings as of September 30, 2021 for each investment type (in thousands):

Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent five percent or more of the Pool are as follows (in thousands):

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside pa rty. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).

The market value of the pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure Minimum
Legal
Rating Total A- A+ AA AA+ AAA Unrated
Pooled cash and investments
Money market mutual funds N/A 6,437$ -$ -$ -$ 6,437$ -$ -$ U.S. Treasury notes N/A 1,234,191 - - - - 1,234,191 - Federal agency securities N/A 276,744 - - - 276,744 - - Corporate notes N/A 21,316 7,138 5,992 1,190 3,156 3,840 - Local Agency Investment Fund (LAIF) N/A 221,623 - - - - - 221,623 Total pooled investments 1,760,311$ 7,138$ 5,992$ 1,190$ 286,337$ 1,238,031 $ 221,623 $ Non-pooled cash and investments
Money market mutual funds N/A 67,557$ -$ -$ -$ -$ -$ 67,557$ U.S. Treasury notes N/A 25,528 - - - - 25,528 - Guaranteed Investment Contracts (GIC) N/A 27,085 - - - - - 27,085 Total non-pooled investments 120,170$ -$ -$ -$ -$ 25,528$ 94,642$ Investment Type
Rating as of Year End
Reported
Issuer Investment Type Amount
Federal National Mortgage Association Federal Agency Securities 127,444$ Federal Home Loan Bank Federal Agency Securities 91,210 63 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits. All securities owned by the City are deposited in trust for safekeeping with a custodial bank different from the City's primary bank.

As of September 30, 2021, the City reported depo sits of $223.2 million, collateralized in compliance with California Government Code, $16.6 million for checks outstanding.

Fair Value Hierarchy
The City has the following recurring fair value measurements as of September 30, 2021:
 U.S. Treasury Notes totaling $1,259.7 million, Federal Agency Securities totaling $276.7 million, and Corporate Notes totaling $21.3 million are classified in Level 2 of the fair value hierarchy, as the valuation uses a market-based model which c onsiders yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-provi ded prices. These prices are obtained from various pricing sources by the City’s custodian bank.
 Local Agency Investment Funds (LAIF) tota ling $221.6 million is measured at fair value, however, the investment is not subject to the fair value hierarchy.  Money Market Funds and Guaranteed Inve stment Contracts totaling $74.0 million and $27.1 million, respectively, are not subject to the fair value hierarchy as the investments are reported at amortized cost and contract value, respectively.

The following table categorizes the City’s investments within the fair value hierarchy as of September 30, 2021 (in thousands):

Total Level 1 Level 2 Level 3
Debt Securities
U.S. Treasury notes 1,259,719$ -$ 1 ,259,719$ -$ Federal agency securities 276,744 - 276,744 - Corporate Notes 21,316 - 21,316 - Total investments at fair value 1,557,779 -$ 1,557,779$ -$ Local Agency Investment Fund (LAIF) 221,623
Money market mutual funds 73,994
Guaranteed investment contracts 27,085
Total investments 1,880,481$
Fair Value Measurement
Investments at Fair Value Level
Other Investments at Fair Value
Other Investments at Cost or Contract Value
64 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 5 – RECEIVABLES
Governmental activities interest receivable in the Statement of Net Position includes $168 thousand in federal interest subsidies of the Agency’s Build America and Recovery Zone Economic Development Bonds. All receivables are expected to be collected within one year except for delinquent property taxes, notes and loans and Other Noncurrent Receivables.

Receivables at September 30, 2021 for the City’s individual major funds, nonmajor and internal service funds in the aggregate, including applicable allowances for uncollectible accounts, are as follows (in thousands):

General Housing Nonmajor Internal
General Capital Assistance Governmental Service
Fund Projects Special Revenue Funds Funds Total
Governmental Activities:

Receivables:

Interest
1 -$ -$ -$ -$ -$ -$ Taxes 113,077 - - - - 113,077 Accounts 29,093 309 200 4,291 1,532 35,425 Due from Other Governments 40,851 16,733 - 84,945 30 142,559 Other Noncurrent Receivables - - - 220,992 - 220,992 Total Receivables 183,021 17,042 200 310,228 1,562 512,053 Less: Allowance for Receivables (8,890) (63) (167) (5,812) (24) (14,956) Net Receivables 174,131$ 16,979$ 33$ 304,416$ 1,538$ 497,097 $ Excludes $168 thousand for Build America Subsidy
1 Nonmajor
Gas Water Tidelands Proprietary
Utility Utility O perating Harbor Funds Total
Business-type Activities:

Receivables:

Interest 15$ 10 $ 61 $ 7$ 32 $ 125 $ Accounts 14,662 10,925 13,642 61,857 32,000 133,086 Notes and Loans Receivable - - - - - - Due from Other Governments - 475 268 24,975 3,696 29,414 Total Receivables 14,677 11,410 13,971 86,839 35,728 162,625 Less: Allowance for Receivables (3,023) (1,071) (1,904) (2,171) (4,112) (12,281) Net Receivables 11,654$ 10,339 $ 12,067 $ 84,668 $ 31,616 $ 150,344 $ 65 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 6 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The composition of interfund balances as of September 30, 2021 is as follows (in thousands):

General Housing Nonmajor
Capital Assistance Governmental Water
General Projects Special Funds Utility
Payable - Due From:

G eneral -$ 24$ 2,273$ 5,342$ 30,832$ G eneral Capital Projects - - - - - Nonm ajor G overnm ental 21,591 - - 62 14 Gas Utility 655 - - - - Water Utility 656 - - - - Tidelands Operating 653 - - - - Harbor 243 - - 344 - Nonm ajor Proprietary 1,174 - - - - Internal Service 5,000 - - - - Total Due To 29,972$ 24$ 2,273$ 5,748$ 30,846$ Receivable - Due To:

Nonmajor Internal Total
Tidelands Proprietary Service Due
Operating Harbor Fun ds Fun ds From
Payable - Due From:

G eneral -$ -$ 2,823$ 15,999$ 57,293$ G eneral Capital Projects - - - 259 259 Housing Assistance Special Revenue - - - 123 123 Nonmajor G overnmental - 444 - 1,713 23,824 Gas Utility - - - 686 1,341 Water Utility - - - 879 1,535 Tidelands Operating - - - 976 1,629 Harbor 21,733 - 2 3,648 25,970 Nonmajor Proprietary - - - 1,529 2,703 Internal Service - - - 1,521 6,521 Total Due To 21,733$ 444$ 2,825$ 27,333$ 121,198$ Receivable - Due To:

Nonmajor Nonmajor Total
Governmental Proprietary Internal Advances
Funds Harbor Funds Service From
Payable - Advances From:

G eneral -$ -$ 114 -$ 114$ Nonm ajor G overnm ental 3,809 - - 1,600 5,409 Tidelands Operating - 1,210 - - 1,210 Harbor - - - 4,087 4,087 Total Advances To 3,809 $ 1,210 $ 114$ 5,687 $ 10,820 $ Receivable - Advances To:

66 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Due to / Due from Other Funds
The General Fund has provided $21.6 million to various grant funds to cover operating expenses prior to receipt of reimbursements.

The General Fund owes the Water Utility Fund $30.8 million as a result of a court ruling against the City on the Measure M litigation.

The City, under authority of the City Charter Chapter XII, Section 1209(c)(4), and with the approval of the Board of Harbor Commissioners, adopted a resolution to transfer 5 percent of the Harbor operating revenues to the Tidelands Operating Fund. The amount accrued for the Harbor’s 2021 operating revenues is $21.7 million and will be paid in fiscal year 2022.

The General Fund recorded a total due to Inte rnal Service Funds of $16.0 million. Of this amount, $13.0 million pertains to wages and benefits accrued at fiscal year-end in the Employee Benefit Fund to be reimbursed by the General Fund in the subsequent fiscal period.

Advances from Other Funds
Advances to/from other funds have been recorded fo r amounts that will be repaid usually with interest over an extended period of time.

The Subsidence Fund advanced interest earnings on reserves to the General Fund in the amount of $4.1 million in both fiscal years 2005 and 2006. In fiscal year 2007, the General Fund started repayment of $500 thousand per year at zero percent interest. The balance outstanding as of September 30, 2021 is $614 thousand, of which $114 thousand is long-term and $500 thousand is current.

In fiscal year 2001, the Housing Development Fund entered into a $4.0 million zero interest loan agreement with the Community Development Grants Fund for the acquisition of 26 parcels of land for low and very low-income affordable rental housing. The Housing Fund is required to make principal payments using 25 percent of the proceeds from repayments of promissory notes from the developer. Any remaining balance of the promissory note owed on April 1, 2034 shall be immediately due and payable.

The outstanding balance is $3.8 million at September 30, 2021.

In fiscal year 2011, the Harbor Fund advanced $1.3 million to the Tidelands Operating fund to move forward with the Colorado Lagoon Restoration Project. The advance funding will be applied to the value of future mitigation credits and as matching funds for a grant from the State Water Resources Control Board. The balance outstanding as of September 30, 2021 is $1.2 million.

In fiscal year 2020, the City identified paid time off amounts paid in prior years by the Employee Benefit Fund on behalf of Harbor Fund employees. Repayment for these costs by the Harbor Fund will be over a ten-year period. The balance outstanding as of September 30, 2021 is $5.0 million, of which $4.1 million is long-term and $1.0 million is current.

67 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Interfund Transfers
The City regularly executes transfers from one fund to another, such as for the reimbursement of services. At September 30, 2021, interfund transfers are as follows (in thousands):

Significant transfers include the following:

The General Fund reported a transfer out of $30.8 million to the Water Utility Fund representing the amount owed as a result of a court ruling against the City on the Measure M litigation.

The General Fund transferred $34.1 million to the General Capital Projects funds to fund various capital projects. Of this amount, $23.0 million was City Measure A funds.

The General Fund transferred a total of $14.1 million to non-major governmental funds in fiscal year 2021. Of this amount, $6.1 million was transferred to the General Debt Service Fund for debt service payments and fiscal agent fees.

Non-major Governmental Funds transferred $94.0 million to the General Fund. Of this amount, $71.2 million was reimbursement for Police Department pe rsonnel eligible expenditures funded by the American Rescue Plan Act. In addition, $15.5 million was transferred from the Health Grants Fund for the purchase of property to provide interim housing options for persons experiencing homelessness.

Non-major Governmental Funds transferred $3.7 million to other Non-major Governmental Funds.

Significant transfers include the Successor Agency transferring $2.3 million to the Successor Agency Debt Service Fund and $4.0 million to the Housing Development Fund for current and future debt service payments.

The Harbor transferred $21.7 million to the Tidelands Operating Fund as allowed by the City Charter.

The Tidelands Oil Revenue Fund transferred $13.5 million under the optimized water flood program to the Tidelands Operating Fund.

The Gas and Water Utilities transferred $13.5 million and $8.6 million, respectively, to the General Fund in compliance with the voter approved Utility Revenue Charter Amendment (Measure M). This amendment authorized the annual payment of funds to General Fund, provided that the maximum amount does not exceed 12% of each Utilities’ audited annual gross revenues.

General Housing Nonmajor Nonmajor Internal Total
Capital Assistance Governmental Gas Water Tidelands Proprietary Service Transfers General Projects Special Revenue Funds Utility Utility Operating Harbor Funds Funds Out Transfers Out:

General -$ 34,122$ 2,273$ 14,088 980 $ 30,832$ -$ - $ 292$ 7,038 $ 89,625$ General Capital Projects 866 - - 243 - - - - - - 1,109 Nonmajor Governmental 94,031 1,479 - 3,748 - - - 134 - 3,645 103,037 Gas Utility 13,520 1,195 - - - - - - - 608 15,323 Water Utility 8,628 - - - - - - - - - 8,628 Tidelands Operating - - - - - - - - 5,700 - 5,700 Harbor - - - - - - 21,733 - - - 21,733 Nonmajor Proprietary 500 599 - - - - 13,495 - - 1,904 16,498 Internal Service Funds 53,124 70 - - - - - - - - 53,194 Total Transfers In 170,669$ 37,465$ 2,273$ 18,079$ 980 $ 30,832$ 35,228$ 134$ 5,992 $ 13,195 $ 314,847$ Transfers In:
68 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 7 – CAPITAL ASSETS
Capital asset activity for governmental activity for the year ended September 30, 2021 is as follows (in thousands):

Depreciation has been charged to functions/pr ograms of governmental activities as follows (in thousands):

Balance at Balance at
October 1, September 30
Governmental Activities: 2020 Increase Decrease Transfers 2021 Capital Assets not being Depreciated:

Land 222,835$ 4,332$ (4,405)$ 2,350$ 225,112$ Rights-of-way 81,340 - - - 81,340 Construction In Progress 61,221 18,831 - (17,147) 62,905 Total Capital Assets not being Depreciated 365,396 23,163 (4,405) (14,797) 369,357 Capital Assets being Depreciated:

Buildings 571,045 17,385 - 133 588,563 Improvements Other than Buildings 147,177 (36) 11,244 158,385 Infrastructure 426,995 - - 3,420 430,415 Machinery and Equipment 96,681 5,632 (7,451) - 94,862 Vehicles and Aircraft 138,396 11,908 (6,949) - 143,355 Software and Patents 37,979 - (171) - 37,808 Total Capital Assets being Depreciated 1,418,273 34,925 (14,607) 14,797 1,453,388 Less Accumulated Depreciation for:

Buildings (140,749) (14,643) - - (155,392) Improvements Other than Buildings (85,866) (5,955) 36 - (91,785) Infrastructure (355,862) (9,757) - - (365,619) Machinery and Equipment (53,447) (8,679) 7,429 - (54,697) Vehicles and Aircraft (79,711) (11,967) 6,904 - (84,774) Software and Patents (17,653) (1,775) 171 - (19,257) Total Accumulated Depreciation (733,288) (52,776) 14,540 - (771,524) Total Capital Assets being Depreciated, Net 684,985 (17,851) (67) 14,797 681,864 Governmental Activities Capital Assets, Net 1,050,381$ 5,312$ (4,472)$ -$ 1,051,221$ General Government 19$
Public Safety 3,179
Public Health 602
Community and Cultural 5,705
Public Works 12,982
Capital Assets held by City's internal services funds allocated to various 30,289
Total governmental activities depreciation 52,776$
functions on a prorated basis based on their usage of the assets 69 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Capital asset activity for business-type activities fo r the year ended September 30, 2021 is as follows (in thousands):

Depreciation has been charged to functions/pr ograms of business-type activities as follows (in thousands):

Balance at Balance at
October 1, September 30,
Business-type Activities: 2020 Increase Decrease Transfers 2021 Capital Assets not being Depreciated:

Land 1,314,278$ -$ -$ 62,307$ 1,376,585$ Rights-of-way 203,304 - - - 203,304 Water Rights 40 - - - 40 Historic Collections 3,442 - - - 3,442 Construction In Progress 2,097,145 430,627 (6,313) (1,919,121) 602,338 Total Capital Assets not being Depreciated 3,618,209 430,627 (6,313) (1,856,814) 2,185,709 Capital Assets being Depreciated:

Buildings
1 3,990,792 - (114) 422,955 4,413,633 Improvements Other than Buildings 713,540 - (20) 27,143 740,663 Infrastructure 1,243,005 - (1,793) 1,402,858 2,644,070 Machinery and Equipment
1 236,118 2,727 (884) 2,073 240,034 Vehicles and Aircraft 105,637 2,008 (398) - 107,247 Software and Patents 28,362 - (1) 1,785 30,146 Total Capital Assets being Depreciated 6,317,454 4,735 (3,210) 1,856,814 8,175,793 Less Accumulated Depreciation for:

Buildings (2,261,483) (148,712) 110 3,663 (2,406,422) Improvements Other than Buildings (382,749) (26,689) 13 - (409,425) Infrastructure (739,008) (46,890) 784 279 (784,835) Machinery and Equipment (199,619) (7,674) 884 (3,086) (209,495) Vehicles and Aircraft (30,659) (3,535) 385 (855) (34,664) Software and Patents (23,496) (1,107) 1 (1) (24,603) Total Accumulated Depreciation (3,637,014) (234,607) 2,177 - (3,869,444) Total Capital Assets being Depreciated, Net 2,680,440 (229,872) (1,033) 1,856,814 4,306,349 Business-type Activities Capital Assets, Net 6,298,649$ 200,755$ (7,346)$ -$ 6,492,058$ Gas Utility 7,724$
Tidelands Operating 21,846
Harbor 172,827
Water Utility 13,428
Nonmajor Business-type Funds:

Sewer Utility 2,842
Solid Waste Management 772
Tideland Oil Revenue 330
Airport 14,827
Development Services 11
Total Business-type Activities Depreciation 234,607$
70 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 8 – CHANGES IN LONG-TERM LIABILITIES

Changes in long-term liabilities for the year ended September 30, 2021 are as follows (in thousands):

For governmental activities, the General Fund, other governmental funds, and Internal Service funds have been used to liquidate accrued claims liability, accrue d employee benefits, litigati on, and self-insurance.

Pension and OPEB liabilities are paid out of operating funds based on a percentage of covered payroll.

Balance at Balance at Due
October 1, September 30, Within
Governmental Activities: 2020 Additions Reductions 2021 One Year Bonds Payable:

Revenue Bonds 76,320$ -$ (6,870)$ 69,450$ 7,235$ Pension Obligation Bonds 6,765 - (6,765) - - Tax Allocation Bonds 193,920 19,765 (41,695) 171,990 16,080 Plus (Less) Unamortized Amounts:

P remium 14,567 4,170 (1,974) 16,763 - Discount (2) - 2 - - Total Bonds Payable 291,570 23,935 (57,302) 258,203 23,315 Notes, Loans and LOC Payable 7,905 142 (478) 7,569 588 Capital Leases 44,676 1,571 (7,304) 38,943 9,130 Police and Fire Annuities 5,765 - (1,329) 4,436 - Estimated Oil Field Abandonment Costs 21,530 1,540 - 23,070 - Environmental Remediation 1,912 2,689 (325) 4,276 3,551 Accrued Self-Insured Claims 180,036 176,385 (180,036) 176,385 31,605 Accrued Employee Benefits 169,274 181,743 (178,421) 172,596 57,817 Total OP EB Liability 7,515 - (785) 6,730 - Net Pension Liability 881,147 - (505,451) 375,696 - Community Hospital-Seismic Work 25,000 - (1,000) 24,000 1,000 Other LT Obligations-Civic Center 294,864 - (5,099) 289,765 5,189 Total, Governmental Activities 1,931,194$ 388,005$ (937,530)$ 1,381,669$ 132,195$ Business-Type Activities:

Bonds Payable:

Revenue Bonds 1,547,950$ -$ (57,765)$ 1,490,185$ 71,735$ Plus (Less) Unamortized Amounts:

P remium 122,330 - (12,120) 110,210 - Discount (20) - 7 (13) - Total Bonds Payable 1,670,260 - (69,878) 1,600,382 71,735 Notes, Loans and LOC Payable 472,387 545,000 (472,078) 545,309 51,104 P remium 5,497 - (5,497) - - Total Notes, Loans
and Lines of Credit Payable 477,884 545,000 (477,575) 545,309 51,104 Capital Leases 37,747 - (4,804) 32,943 2,839 Due to State of California 9,072 5,825 (9,072) 5,825 5,825 Estimated Oil Field Abandonment Costs 102,600 7,700 - 110,300 - Fair Value of Derivative 13,862 10,079 (13,862) 10,079 - Environmental Remediation 2,600 - - 2,600 - Accrued Claims Liability 5,250 5,200 (10,000) 450 450 Accrued Employee Benefits 48,239 4,284 - 52,523 17,259 Total OP EB Liability 2,140 - (85) 2,055 - Net Pension Liability 324,349 - (172,170) 152,179 - Site Restoration 1,000 - - 1,000 - Total, Business-Type Activities 2,695,003$ 578,088$ (757,446)$ 2,515,645$ 149,212$ 71 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 9 – BONDS PAYABLE
At September 30, 2021, bonded indebtedness consisted of the following (in thousands):

Authorized Outstanding
Date Final Range of and September 30,
Issued Maturity Interest Rates Issued 2021

GOVERNMENTAL ACTIVITIES
LEASE REVENUE BONDS:
2012A LBBFA 11/28/12 08/01/31 4.00% - 5.00% 32,969 $ 25,057$ 2016 Courthouse Demolition 01/13/16 08/01/26 2.00% - 5.00% 13,150 7,235 FALB2019A PS Parking Garage 05/22/19 08/01/39 3.00% - 5.00% 9,245 8,720 FALB2019B Lease Rev Ref Bonds 05/22/19 08/01/31 5.00% 13,350 11,975 Premium/Discount - 4,960
Subtotal, General City Bonds 68,714 57,947
TAX ALLOCATION BONDS:

Tax Allocation Bonds:
2002B West Long Beach Industrial Project 12/05/02 11/01/24 2.25% - 5.50% 21,860 5,210 2002B Downtown Project 12/05/02 11/01/22 2.25% - 5.50% 25,920 10,505 2005C Downtown Project 02/01/06 08/01/24 3.25% - 5.50% 7,900 1,860 2005C North Long Beach Project 02/01/06 08/01/31 3.25% - 5.50% 27,145 15,585 2015AB SA 06/23/15 08/01/40 4.00% - 5.00% 155,820 119,880 2021 SA Lease Revenue Bonds 02/11/21 08/01/39 3.00% - 4.00% 19,765 18,950 Premium/Discount - 10,314
Subtotal, Tax Allocation Bonds 291,390 182,304
INTERNAL SERVICE FUND BONDS:
2012A LBBFA IS 11/28/12 08/01/31 4.00% - 5.00% 21,661 16,463 Premium/Discount - 1,489
Subtotal, Internal Service Fund Bonds 98,211 17,952 Total, Governmental Activities 458,315$ 258,203$
(continued)
Description

72 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Authorized Outstanding
Date Final Range of and September 30,
Issued Maturity Interest Rates Issued 2021

BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUND BONDS:

Gas Utility Fund:
2007A Natural Gas Purchase 10/18/07 11/15/37 4.25% - 5.50% 635,665$ 477,550$ 2007B Natural Gas Purchase 10/18/07 11/15/33 4.90% - 5.07% 251,695 69,005 Premium/Discount - 9,606
Subtotal, Gas Utility Bonds 887,360 556,161
Tidelands Fund:
2012 Aquarium 03/14/12 11/01/30 3.50% - 5.00% 102,580 63,470 2015 Marina 06/03/15 05/15/45 4.00% - 5.00% 114,015 108,095 2016 Rainbow 07/26/16 08/01/23 3.00% - 5.00% 19,115 5,925 2017A Tidelands 11/01/17 11/01/27 1.35% - 2.55% 10,190 8,990 2017B Tidelands 11/01/17 11/01/27 1.79% - 3.49% 17,705 11,640 Premium/Discount - 10,133
Subtotal, Tidelands Bonds 263,605 208,253
Harbor Fund:
2014B Harbor 04/24/14 05/15/27 3.00% - 5.00% 20,570 11,700 2015A Harbor 04/16/15 05/15/23 4.00% - 5.00% 44,845 21,430 2015B Harbor 04/16/15 05/15/25 5.00% 20,130 20,130 2015C Harbor 07/15/15 05/15/32 5.00% 66,085 66,085 2015D Harbor 07/15/15 05/15/42 5.00% 66,865 66,865 2017A Harbor 06/15/17 05/15/40 5.00% 101,610 101,610 2017B Harbor 06/15/17 05/15/43 5.00% 25,985 25,985 2017C Harbor 06/15/17 05/15/47 5.00% 42,660 42,660 2019A Harbor 07/11/19 05/15/49 5.00% 161,310 161,310 2020A Harbor 05/15/20 05/15/27 4.00% - 5.00% 55,725 55,725 2020B Harbor 05/15/20 05/15/24 3.00% - 5.00% 74,940 55,305 Premium/Discount - 88,787
Subtotal, Harbor Bonds 1,039,645 717,592
Water Utility Fund:
2010A Water 09/15/10 05/01/24 3.00% - 5.00% 22,740 8,250 2012 Water 08/30/12 05/01/27 2.00% - 5.00% 9,850 4,695 Premium/Discount - 594
Subtotal, Water Utility Bonds 32,590 13,539
Non-Major Enterprise Funds:
2009A Airport 12/08/09 06/01/22 4.00% - 5.00% 9,795 1,660 2009C Airport 12/08/09 06/01/39 7.00% - 7.80% 44,890 44,890 2010A Airport 11/23/10 06/01/40 4.00% - 5.00% 48,435 39,085 2010B Airport 11/23/10 06/01/40 3.00% - 5.00% 12,965 10,165 2016 Sewer 08/24/16 05/01/36 4.00% - 5.00% 9,830 7,960 Premium/Discount - 1,077
Subtotal, Non-Major Enterprise Bonds 125,915 104,837 Total, Business-Type 2,349,115 1,600,382
Grand Total, Primary Government Bonds Payable 2,807,430$ 1,858,585$ Description

73 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Governmental Funds
Debt service requirements to maturity for governmental activities bonds are as follows (in thousands):

Lease Tax Lease
Revenue Allocation Revenue Principal Interest Total
5,623$ 16,080 $ 1,612$ 23,315 $ 11,358$ 34,673$ 5,862 19,655 1,683 27,200 9,963 37,163 6,153 17,625 1,782 25,560 8,927 34,487 6,444 7,475 1,881 15,800 7,755 23,555 6,724 7,880 1,981 16,585 7,069 23,654 2027 - 2031 17,445 45,485 7,524 70,454 24,541 94,995 2032 - 2036 2,815 37,395 - 40,210 9,740 49,950 2037 - 2041 1,921 20,395 - 22,316 2,111 24,427 52,987 171,990 16,463 241,440 81,464 322,904 4,960 10 ,314 1,489 16 ,763 - 16 ,763 Totals 57,947 $ 182,304 $ 17,952 $ 258,203 $ 81,464 $ 339,667 $ Ending
2026
2022
2023
2024
2025
Subtotal
Premium /
Discount
Year
Governmental Funds Internal
Service Funds
Annual Debt Service Requirements

Advance Refundings
In December 2002, the former Redevelopment Agency issued $47.8 million in LBBFA Downtown and West Long Beach Industrial Redevelopment Proj ect Areas 2002 Series B Tax Allocation Revenue Bonds (Series B bonds). These 2002 Series B bonds were issued (a) to refund $25.7 million of the outstanding Series 1992A Downtown and West Long Beach Industrial Bonds with interest rates ranging from 0.0 percent to 6.0 percent, (b) to repay certain amounts owed by the Agency to the Harbor, (c) to make a deposit to the reserve account and (d) to pay certain issuance costs for the 2002 Series B bonds.

The 2002 Series B interest rates range from 2.0 percent to 5.5 percent for the West Long Beach Industrial Project and 2.3 percent to 5.5 percent for Downtown Project.

In February 2006, the former Redevelopment Agency issued $35.0 million in LBBFA Tax Allocation Revenue Bonds Downtown and North Long Beach Redevelopment Project Areas 2005 Series C bonds (Series C bonds). The Series C bonds were issued to (a) purchase a portion of the outstanding Redevelopment Agency of the City of Long Beach 2002 Subordinate Tax Allocation Bonds (Downtown Redevelopment Project) and (b) the outstanding Redevelopment Agency of the City of Long Beach 2002 Tax Allocation bonds (North Long Beach Redevelopment Project) in order to advance refund a portion of the outstanding LBBFA Tax Allocation Revenue Bonds (Downtown, North Long Beach, Poly High, and West Beach Redevelopment Project Areas) 2002 Series A and to finance certain Agency projects within or of benefit to the Downtown Project Area. The interest rates for the Series C bonds range from

3.3 percent to 5.5 percent.

In February 2021, the Agency issued $19.8 million Tax Allocation Refunding Bonds, Series 2021 (the “2021 Bonds”). The 2021 Bonds were issued: (a) to refund certain obligations of the former Redevelopment Agency of the City of Long Beach; (b) to purchase a municipal bond debt service reserve insurance policy and a municipal bond insurance policy; and (c) to pay certain costs of issuance of the 2021 Bonds. The interest rates for the 2021 Bonds range from 3.0 percent to 4.0 percent. 74 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Proceeds from the sale of the bonds were deposited in an irrevocable trust with an escrow agent to provide for the prepayment of debt service payments on the refunded bonds. Accordingly, the refunded bonds were considered to be defeased and the liabilities for those bonds were removed from the government-wide statement of net position – government al activities. Specific disclosures related to the refunding issue are as follows (in thousands):

Proceeds of refunding bonds issued 19,765$
Prior years' net bond reserves and/or premiums 7,005
Cost of issuance (410)
Deposit to escrow 26,360$
Net present value savings (economic gain) 8,998$
For the refunding transaction, the net carrying amount of the refunded debt of $26.3 million was less than the reacquisition price by $60 thousand. This amount was fully amortized for governmental activities and has been reported as interest expense in the accompanying basic financial statements.

Pledged Revenues
The Agency has pledged a portion of property tax revenues attributable to the Project Areas of the former Redevelopment Agency to repay tax allocation bonds issued between 1992 and 2015. The bonds were issued to finance either redevelopment activities within various project areas or to refinance existing debt that was originally issued for the same purpose. Property tax revenues attributable to the Project Areas of the former Redevelopment Agency are projected to produce 100 percent of the debt service requirements over the life of the bonds. As of September 30, 2021, total principal and interest requirement for the bonds is $234.7 million ($172 million for principal and $62.7 million for interest), payable semiannually through 2040. For the current year, tax in crement revenues received and total debt service paid were $ 51.3 million which are sufficient to pay debt service costs.

Business-Type Funds
Debt service requirements to maturity for business-type activities bonds are as follows (in thousands):

Non
Gas Major
Utility Tidelands Harbor Water Funds Principal Interest Total 16,040$ 13,165$ 35,530 3,300$ 3,700$ 71,735$ 75,178$ 146,913$ 18,645 13,810 37,090 3,450 3,875 76,870 71,829 148,699 21,655 11,635 38,945 3,720 4,040 79,995 67,921 147,916 25,280 12,190 32,000 795 4,220 74,485 63,968 138,453 19,195 10,900 33,525 820 4,425 68,865 60,331 129,196 2027 - 2031 151,285 56,950 98,075 860 25,615 332,785 250,178 582,963 2032 - 2036 146,365 22,410 89,485 - 32,610 290,870 180,222 471,092 2037 - 2041 148,090 28,595 110,330 - 25,275 312,290 78,934 391,224 2042 - 2046 - 28,465 107,595 - - 136,060 29,539 165,599 2047 - 2051 - - 46,230 - - 46,230 4,695 50,925 546,555 198,120 628,805 12,945 103,760 1,490,185 882,795 2,372,980 9,606 10,133 88,787 594 1,077 110,197 - 110,197 556,161$ 208,253$ 717,592$ 13,539$ 104,837 $ 1,600,382 $ 882,795 $ 2,483,177$ Subtotal
Premium /
Discount
Totals
Year
Major Funds
Annual Debt Service Requirements
Enterprise Funds
2026
Ending
2022
2023
2024
2025

75 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Special Assessment Debt
The City serves as the facilitating agent for a numbe r of no-obligation special assessment debt issues.

Funding from these issues has been used to improve streets and other City infrastructure, as well as assisting City residents and businesses with the cost of major structural repairs and installation of seismic resistant improvements to their properties. The City has no obligation to service the debt on these special assessment issues; therefore, no liability has been recorded in the City’s books for the special assessment debt.

At September 30, 2021, aggregate special assessment debt issued through the City consisted of five issues and is summarized as follows:
 Dates Issued: 7/11/02 – 6/15/10
 Final Maturities: 10/01/25 – 10/1/40
 Range of Interest Rates: 2.0% – 6.30%
 Amounts Authorized and Issued: $1,060,000 – $43,000,000  Range of Amounts Outstanding: $650,000 – $28,020,000  Aggregate Outstanding at September 30, 2021: $44,380,000 The proceeds from special assessment debt issued for City infrastructure improvements are usually accounted for in the General Capital Projects Fund. The proceeds from special assessment debt issued for the Pike Public Improvements are accounted for in the Tidelands Fund. Special assessment revenues used to repay these debt issues are accounted for in Custodial Funds.

Long Beach Towne Center CFD No. 5: In May of 2008 the City of Long Beach Community Facilities District No 5 issued $14.6 million of Special Tax Refunding Bonds (Long Beach Town Center) under the provisions of the Mello-Roos Community Facilities Act of 1982. The bonds were issued to refund the 2000 Special Tax bonds, to fund a reserve and to provide funds for the District’s improvement fund for sidewalk and drainage improvements. The bonds do not constitute a debt of the City; therefore, no liability has been recorded in the City’s books. The bonds will mature in October 2025 and bear interest rates ranging from 3.2 percent to 5.75 percent.

Pike Public Improvements CFD No. 6 : In June 2002, the City of Long Beach Community Facilities District No. 6 issued $43.0 million of 2002 Special Tax Bonds (Pike Public Improvement Bonds) under the provisions of the Mello-Roos Community Facilities Act of 1982. The Pike Public Improvement Bonds were issued (a) to finance a portion of the costs of the acquisition, construction, installation, and equipping of various public capital improvements in the Pike Development Project adjacent to downtown Long Beach. A substantial portion of the proceeds were applied to finance the cost of a parking structure. The bonds do not constitute a debt of the City; therefore, no liability has been recorded in the City’s books.

The debt is payable from special tax revenues levied on the property within the district. The bonds will mature in October 2032 with interest rates from 3.25 percent to 6.3 percent.

Douglas Park Commercial Area CFD No. 2007-1 : In July of 2007, Community Facilities District No. 2007-1 issued $15.1 million of 2007 Special Tax Bonds. The Bonds are payable solely from proceeds of a special assessment tax to be levied annually on land within the district. The funds were used to finance the acquisition and construction of various public improvements in Area A, fund a reserve fund, and pay the costs related to the issuance of the bonds. The bonds do not constitute a debt of the City; therefore, no liability has been recorded in the City’s books. The bonds will mature in September 2037 and carry interest rates ranging from 4.0 percent to 5.25 percent.

76 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Belmont Shore CFD No. 2007-2: In December 2009, Community Facilities District No. 2007-2 (Belmont Shore) issued $3.7 million of 2009 Special Tax Bonds. The Bonds are payable solely from proceeds of a special assessment tax to be levied annually on land within the district and certain pledged Belmont Shore area parking meter revenues. Proceeds will be used to finance a new City parking lot in the Belmont Shore area and to finance other improvements to enhance parking. The bonds do not constitute a debt of the City; therefore, no liability has been recorded in the City’s books. The bonds will mature in October 2040 and carry interest rates ranging from 2.0 percent to 6.0 percent.

Toledo Utility Underground : In June 2010, Assessment District No. 08-01 (the Toledo Utility Undergrounding) issued $1.1 million of Limited Obligation Improvement Bonds. The Bonds were issued under the provisions of the City Code, and where applicable, the Improvement Bond Act of 1915. The Bonds are secured by the tax assessments levied against parcels within the District. Proceeds were used to finance the costs of certain undergrounding of overhead electrical, telephone, and cable facilities between Second Street and the Geneva Walkway in the City. The bonds will mature in September 2030 and bear interest rates from 2.0 percent to 5.5 percent.

Such bonds described above do not constitute indebte dness of the City. The City is in no way obligated for their repayment and is only acting on behalf of the bond owners in collecting the assessments and special taxes from the property owners, forwarding the collections to the bond owners, and initiating foreclosure proceedings, when necessary. Accordingly, these special assessment bonds payable have been excluded from the accompanying basic financial statements.

Conduit Debt
The bond issues described below do not constitute general obligations of either the City, the Authority, or the Agency. There is no legal or ethical obligation on the part of the City to make debt service payments on the conduit debt issues. Likewise, the City has no responsibility for bond administration, as the issues are completely administered by independent trustees. Accordingly, these programs and issues have been excluded from the accompanying basic financial statements.

Bonds have been issued in the City’s name for Carn ival Cruises to facilitate construction of pier and wharf improvements for a cruise line docking in the tidelands area adjacent to the Queen Mary. The bonds are payable by a tariff assessed to Carnival Cruises.

Several multi-family mortgage bonds have been issued under the auspices of the Authority and the Agency. These issues provided for the financing of acquisitions and construction of an apartment complex. The resulting bonds are not obligations of the City and only constitute special limited obligations of the Authority and the Agency and are payable solely from the revenue and assets of the homeowner obtaining funding under this program.

At September 30, 2021, the City’s Conduit Debt outstanding consisted of the following (in thousands):

Outstanding at
Final Amount September 30,
Maturity Authorized 2021
Carnival Bonds 2030 30,000$ 19,350$
Grisham Housing Bonds Series A 2035 10,245 934
40,245$ 20,284$
Description
Total Conduit Debt

77 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 10 – NOTES, LOANS PAYABLE AND OTHER LONG-TERM OBLIGATIONS At September 30, 2021, the City had notes, loans payable and other long-term obligations, consisting of the following (in thousands):

Range of Authorized Outstanding at
Date Final Interest and September 30,
Issued Maturity Rates Issued 2021

GOVERNMENTAL ACTIVITIES
NOTES, LOANS AND LINES OF CREDIT PAYABLE:

General Fund:

Southern California Edison 12/08/17 05/25/25 2.11% 396 $ 210$ Southern California Edison 01/09/18 02/25/25 2.18% 877 459 Southern California Edison 05/08/18 10/23/24 2.69% 869 365 Southern California Edison 01/31/19 02/27/27 2.37% 715 498 Premium/Discount - 70
Total General Fund 2,857 1,602
Successor Agency Fund:

Los Angeles County 01/21/92 N/A 3.75% - 5,967 OTHER LONG-TERM OBLIGATIONS:

Civic Center Fund:

New Civic Center Complex N/A N/A N/A - 289,765 General Fund:

Police and Fire Annuity N/A N/A N/A - 4,436 MWN Community Hospital N/A N/A N/A 25,000 24,000 Total General Fund 25,000 28,436
27,857$ 325,770$

BUSINESS-TYPE ACTIVITIES
NOTES, LOANS AND LINES OF CREDIT PAYABLE:

Tidelands Fund:

State of Calif DBAW - Lighthouse 06/23/00 08/01/30 4.50% 700 $ 309$ Harbor Fund:

Harbor 2021 Line of Credit 12/01/20 05/01/22 N/A 50,000 50,000 Harbor 2021 TIFIA Loan 05/03/21 05/15/55 1.26% 495,000 495,000 Total Harbor Fund 545,000 545,000
OTHER LONG-TERM OBLIGATIONS:

Water Fund:

Site Restoration N/A N/A N/A - 1,000
545,713$ 546,309$
Description
Total, Governmental Activities
Total, Business-Type Activities

78 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Governmental Activities
Other Long-term Obligation – MWN Community Hospital, LLC During fiscal year 2020, the City entered a short-term lease with MWN Community Hospital, LLC, for the lease of property owned by the City at 1720 Termino Avenue, 1760 Termino Ave, and 4111 East Wilton Street. City will pay the Lessee 50 percent of the total Seismic Costs, not to exceed $25.0 million, and would be payable, in arrears in installments of $1.0 million for the first 5 years, and $2.0 million per year for years 6-15, commencing from the effective date of the replacement lease. The balance at September 30, 2021 totaled $24.0 million.

Successor Agency Fund Loans
The Agency has an agreement with the Los Angeles County Office of Education and the County of Los Angeles (County Entities) whereby the County Entities’ share of the net tax increment generated by the Los Altos Project area shall be deferred through 2020. The deferral accrues simple interest at a rate of

3.8%. The outstanding balance of the deferral and any accrued interest are due prior to the termination of the project area in 2031. The balance at September 30, 2021 totaled $5.9 million.

General Fund Loans
The City participated in the Energy Management Solutions Incentives program by Southern California Edison (SCE). By completing installation of eligible energy efficient equipment that included Street Light LED conversions, SCE provided the City with zero-percent interest financing to be repaid over a specified period through the City’s electric utility bill. The balance at September 30, 2021 totaled $1.5 million.

Payments over the next five years will be made as follows (in thousands):

General Successor
Year ending Fund Agency Principal Interest Total
445$ 143$ 588$ 31$ 619$ 457 - 457 20 477 301 - 301 11 312 191 - 191 5 196 96 - 96 2 98 2027 - 2031 42 - 42 1 43 2032 - 2036 - 5,824 5,824 - 5,824 1,532 5,967 7,499 70 7,569 70 - 70 - 70 Total 1,602$ 5,967$ 7,569$ 70$ 7,639$ Premium/Discount
Governmental Activities
Annual Debt Service Requirements
Subtotal
2022
2023
2024
2025
2026

Under these loan agreements, non-payment of amounts deemed due may result in discontinuance of service. The agreements also specify circumstances construed as breach of agreement or customer default.

In these instances, SCE has the right to declare the entire unpaid balance of the loans immediately due and payable.

Other Long-term Obligation - New Civic Center Complex
During fiscal 2016, the City entered into a multi-part y Public-Private Partnership agreement (P3) with Plenary-Edgemoor Civic Partners (PECP). The Pr oject comprises two components; a City project consisting of a new City Hall, new Main Library and revitalized Lincoln Park (Project Assets) and a new Harbor headquarters building. Certain common areas are jointly owned by both the City and the Harbor.

The Project Agreement required PECP to design, build, operate, and maintain the Civic Center complex. 79 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

During fiscal year 2019, the City moved into the new City Hall and the new Library. Consistent with the agreement, the City began paying PECP the Base Service fees, as defined, over 40 years consisting of a Fixed Growth Fee attributable to construction cost s of the Project Assets and a Variable Growth Fee attributable primarily to operation and maintenance services and life-cycle replacement costs of Project Assets. Both the Fixed Growth and Variable Growth Fee have scheduled annual increases. The Fixed Growth component is a stable 2.18% per annum and the Variable Growth is subject to annual increases in the CPI-U index.

The City will also pay PECP for various operating and maintenance and life-cycle replacement costs related (FM Charges) to the Harbor Headquarters building and for the Harbor’s portion of the jointly owned common areas. These costs have a fixed component totaling $71 thousand a month and a variable component ranging from zero to $128 thousand a month depending on the scope of lifecycle costs. The FM charges are also to be paid over a 40-year term.

Payments relating to these activities over the next fi ve years will be made as follows (in thousands):

Base Variable Harbor
Principal Interest Grow th Fee Total
5,189 5,011 7,208 732 18,140
5,280 4,919 7,445 743 18,387
5,373 4,827 7,688 780 18,668
5,467 4,732 7,935 778 18,912
5,563 4,636 8,188 801 19,188
2027 - 2031 29,319 21,679 44,938 4,502 100,438 2032 - 2036 31,987 19,011 52,145 4,672 107,815 2037 - 2041 34,898 16,099 60,172 3,706 114,875 2042 - 2046 38,075 12,923 69,115 6,229 126,342 2047 - 2051 41,540 9,458 79,074 5,438 135,510 2052 - 2056 45,321 5,677 90,169 4,614 145,781 2057 - 2061 41,753 1,596 84,559 3,497 131,405 289,765$ 110,568 $ 518,636$ 36,492 $ 955,461 $
2026
2024
2025
Payments
Ye ar
2022
2023

Police and Fire Annuity Obligation Program
The City administers a Police and Fire Annuity Pr ogram (Program). Enrollment in the Program was terminated in 1945. The Program covers a diminishing number of public safety retirees or their surviving spouses. Total expenditures amounted to $695 thousand for the fiscal year ended September 30, 2021.

Program benefits are funded on a pay-as-you-go basis and the Program has no assets.

At September 30, 2021, the program liability was $4.4 million, and the change in the Program’s accrued liability is as follows (in thousands):

Accrued Program Liability at October 1, 2020 5,765$
Increase (Decrease) During the Year Attributable to:

Benefits Paid (695)
Estimated Change in Annualized Value of Benefits (634)
Accrued Program Liability at September 30, 2021 4,436$
80 The number of program participants diminishes each year, and there were 8 total participants as of September 30, 2021. The following table summarizes total annuity benefits paid, accrued liability and number of participants for the last five fiscal years (dollars in thousands):

Annuity Accrued
Year Number o f Benefits Pro gram
Ending Participants Paid Liabilit y
2017 20 1,180 7,634
2018 18 1,072 6,810
2019 16 1,084 6,365
2020 13 906 5,765
2021 8 695 4,436
Business-Type Activities
Notes and loan payments relating to business-type activities over the next five years will be made as follows (in thousands):

Year ending Tidelands Harbor Principal Interes t Total
29$ 51,075$ 51,104$ 6,151$ 57,255$ 30 2,215 2,245 6,236 8,481 31 2,330 2,361 6,215 8,576 33 2,390 2,423 6,168 8,591 34 2,475 2,509 6,144 8,653 2027 - 2031 152 13,675 13,827 30,209 44,036 2032 - 2036 - 21,785 21,785 29,276 51,061 2037 - 2041 - 49,945 49,945 27,067 77,012 2042 - 2046 - 76,640 76,640 23,705 100,345 2047 - 2051 - 167,055 167,055 16,248 183,303 2052 - 2056 - 155,415 155,415 4,979 160,394 309 545,000 545,309 162,398 707,707 - - - - - Totals 309 $ 545,000$ 545,309$ 162,398$ 707,707$ Business-Type Activities
Principal Payments Annual Debt Service Requirements
Premium / Discount
2022
2023
2024
2025
2026
Subtotal

Harbor Line of Credit
On May 16, 2019, the Board of Harbor Commissioners approved a three-year revolving credit agreement in connection with a tax exempt and taxable revolving line of credit to be provided by MUFG Union Bank, N.A. in an aggregate principal amount not to exceed $200.0 million outstanding at any one time. The tax exempt and taxable interest rates to be paid by Harbor for borrowings under the revolving lines of credit will be based on a percentage of the one month London Interbank Offered Rate (LIBOR). The purpose of this line of credit is to provide more flexibility to access unrestricted funds when Harbor has a need.

As of September 30, 2021, Harbor has outstandi ng balance of $50.0 million under this revolving line of credit at the tax exempt interest rate. The expiration date of this line of credit is May 13, 2022.

81 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Harbor TIFIA Loan Subordinate Indebtedness
In May 2014, Harbor entered into a loan agreement (the 2014 TIFIA Loan) with the United States Department of Transportation (USDOT) under the TIFIA for an approved amount of $325.0 million. On May 2020, Harbor entered into a revised new TIFIA loan agreement (the 2021 TIFIA Loan) for an approved amount up to $500.0 million that replaced the 2014 TIFIA Loan. Under the 2020 TIFIA Loan, the USDOT will allow Harbor to borrow up to $500.0 million, provided the amount so borrowed will be used to finance and refinance the costs related to the replacement of the Gerald Desmond Bridge, including, but not limited to, the repayment of the 2018A Notes and the 2020C Notes. The loan is secured by a subordinate lien on the Harbor’s gross revenue. The loan agreement defines the permissible period for the drawdown of funds to be within the one year after substantial completion of the replacement bridge that was retroactively declared in December of 2020. As of September 30, 2021, Harbor has made two draws on the TIFIA Loan in the total amounted of $495.0 million which represents the outstanding loan balance. The drawn TIFIA Loan will be repaid over a period not to exceed 35 years at an interest rate of

1.26%.

82 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 11 – LEASING ARRANGEMENTS
The City has various capital leasing arrangements as follows (in thousands):

1 Lease acquisitions for these funds are for Machinery and Equipment. 2 Lease acquisitions for this fund are for Vehicles.

Governmental Activities
(a) The City entered into a capital lease agreement for the purchase of computers, server equipment and server storage equipment in April 2018. The lease is payable in monthly installments of $27 thousand through April 2023.
(b) The City entered into a capital lease agreement fo r the purchase of Access Control System in June 2018. The lease amount varies by year ranging from $89 thousand per month at inception, to $32 thousand per month from year 5, to $25 thousand per month from year 8, to $16 thousand per month from year 10 through July 2033.

Range of Outstanding a t
Date Fina l Interest Authorized September 30,
Issued Maturity Rates and Issued 2021
GOVERNMENTAL ACTIVITIES:

General Services Fund1:
2018 PC and Equip (a) 04/10/18 04/19/23 2.48% 1,522 502$ 2018 Access Control System (b) 06/29/18 07/12/33 2.98% 7,050 4,200$ 2018 Surveillance Cameras (c) 06/29/18 07/12/23 2.62% 240 92$ 2018 Data Center (d) 08/01/18 08/09/33 2.66% 19,259 7,825$ 2018 Motorola Radios (e) 09/25/18 10/15/30 3.82% 15,804 15,804$ 2019 Technology Equipment (f) 08/22/19 08/22/24 2.16% 803 479$ 2019 Oracle Hardware (g) 09/26/19 09/26/24 1.91% 502 307$ 2020 Data Center (h) 07/09/20 07/09/30 1.24% 1,303 1,159$ 2020 PC Equipment (i) 08/26/20 08/26/25 0.87% 1,200 944$ 2021 PC EquipMENT (j) 09/03/21 09/03/26 1.15% 1,571 1,571$ Total General Services Fund 49,254 32,883
Fleet Services Fund2:
2018 Street Sweepers (k) 06/01/18 06/14/23 2.54% 975 355 2019 Ambulances (l) 12/06/18 12/06/24 2.94% 2,004 1,129 2019 CNG Powered Street Sweeper (m) 09/26/19 09/26/24 1.91% 4,377 2,676 2019 Fire Trucks (n) 05/17/19 05/17/29 2.83% 2,401 1,900 Total Fleet Services Fund 9,757 6,060
Total Governmental Activities Leases 59,011$ 38,943$ BUSINESS-TYPE ACTIVITIES:

Gas Utility Fund1:

Advanced Metering Infrastructure (o) 08/03/15 05/01/30 2.40% 18,000 $ 11,491$ Tidelands Operating Fund1:

Convention Center (p) 10/01/05 10/01/25 4.99% 649 226 Water Fund1:

Advanced Metering Infrastructure (q) 12/20/18 12/20/33 3.35% 27,394 21,226 Total Business-type Activities Leases 46,043$ 32,943$ Description
83 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

(c) The City entered into a capital lease agreement for the purchase of Surveillance Cameras in June 2018. The lease is payable in monthly installments of $4 thousand through July 2023. (d) The City entered into a capital lease agreement for the purchase of Data Center Systems & Telecommunications Equipment & User Devices in August 2018. The lease amount varies by year ranging from $340 thousand per month at inception, to $4 thousand per month from year 5, to $3 thousand per month from year 8, to $1 thousand per month from year 10 through August 2033. (e) The City entered into a capital lease agreement for the purchase of Motorola Radios in September 2018. The lease is payable in annual installments of $1.9 million through October 2030. (f) The City entered into a capital lease agreement for the purchase of Technology Equipment (desktops and laptops) in August 2019. The lease is payable in monthly installments of $14 thousand through August 2024.
(g) The City entered into a capital lease agreement for the purchase of Oracle Hardware in September 2019. The lease is payable in monthly installments of $9 thousand through September 2024. (h) The City entered into a capital lease agreement for the purchase of Data Center Systems & Telecommunications Equipment User Devices in July 2020. The lease is payable in monthly installments of $12 thousand through July 2030.
(i) The City entered into a capital lease agreement for the purchase of computers, server equipment and server storage equipment in August 2020. The leas e is payable in monthly installments of $20 thousand through August 2025.
(j) The City entered into a capital lease agreement for the purchase of computers, server equipment and server storage equipment in September 2021. The l ease is payable in monthly installments of $27 thousand through September 2026.
(k) The City entered into a capital lease agreement fo r the purchase of Street Sweepers in June 2018.

The lease is payable in monthly installments of $17 thousand through June 2023. (l) The City entered into a capital lease agreement for the purchase of Ambulances in December 2018.

The lease is payable in monthly installments of $30 thousand through December 2024. (m) The City entered into a capital lease agreement for the purchase of Street Sweepers in September 2019. The lease is payable in monthly installments of $77 thousand through September 2024. (n) The City entered into a capital lease agreement for the purchase of Fire Trucks in May 2019. The lease is payable in monthly installments of $23 thousand through May 2029.

Aggregate future debt service payments under the City’s governmental activities capital leases are as follows (in thousands):

General Fleet
Services Services Principal Interest Total
7,494$ 1,636$ 9,130$ 1,067$ 10,197$ 7,108 1,624 8,732 824 9,556 2,735 1,504 4,239 654 4,893 2,529 336 2,865 554 3,419 2,363 252 2,615 472 3,087 2027 - 2031 10,291 708 10,999 1,102 12,101 2032 - 2036 363 - 363 95 458 32,883$ 6,060$ 38,943$ 4,768$ 43,711$ Governmental Activities
Principal Payments by Fund Annual Debt Service Requirements 2022
Year ending
Totals
2023
2024
2025
2026
84 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Lease Revenues
The City is the lessor for a number of operating lease agreements. Future rental income under non- cancelable operating leases having an initial term in excess of one year is as follows (in thousands):

Year ending Total
2022 394,650$
2023 418,185
2024 419,759
2025 424,258
2026 25,091
2027-2031 1,463,046
2032-2036 1,085,466
2037-2041 1,055,563
2042-2046 1,492,859
2047-2051 70,122
2052-2056 40,297
2057-2061 30,433
2062-2066 31,325
2067-2071 20,762
2072-2076 15,605
2077-2081 15,930
2082-2086 7,295
Total 7,010,646$

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Business-type Activities
(o) The City entered into a capital lease agreement for the purchase and implementation of an Advanced Metering Infrastructure (AMI) in August 2015. The lease is payable in monthly installments of $713 thousand through May 2030.
(p) The City entered into a capital lease agreement to finance the installation of a surface membrane to the Convention Center roof. The lease is paya ble in annual installments of $52 thousand through October 2025.
(q) The City entered into a capital lease agreement for the purchase and implementation of an Advanced Metering Infrastructure (AMI) in December 2018. The lease is payable in monthly installments of $194 thousand through December 2033.

Annual debt service requirements to maturity for business-type activities capital leases are as follows (in thousands):

Operating Leases
The City’s operating leases consist primarily of rental properties occupied by various City departments. Lease obligations for City-leased properties include rent, utility charges, common area maintenance, storage, and parking. The following is a schedule of future minimum rental obligations required under operating lease agreements for proper ties that have initial or remaining non-cancelable lease terms in excess of one year as of September 30, 2021 (in thousands):

Year ending Total
2022 5,466$
2023 3,880
2024 3,256
2025 3,333
2026 2,606
2027 - 2031 3,249
2032 - 2036 129
Total 21,919$

Gas Utility Water
Tidelands
Operating Principal Interest Total
1,158$ 1,640$ 41$ 2,839 $ 972$ 3,811$ 1,185 1,695 43 2,923 881 3,804 1,215 1,753 45 3,013 792 3,805 1,244 1,813 47 3,104 701 3,805 1,274 1,874 50 3,198 607 3,805 2027 - 2031 5,415 10,365 - 15,780 1,554 17,334 2032 - 2036 - 2,086 - 2,086 35 2,121 Totals 11,491$ 21,226$ 226$ 32,943 $ 5,542$ 38,485$ Annual Debt Service RequirementsPrincipal Payments by Fund 2026
Business-type Activities
2022
2023
2024
2025
Year ending
85 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

86 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 12 – DERIVATIVE INSTRUMENTS
At September 30, 2021, the City had the following hedging derivative instruments outstanding within business-type activities:

1 MMBtu is one million British Thermal Units.

Interest Rate Swap Objective and Terms: As a means to lower financing costs and to reduce the risks associated with the fluctuation of market interest rates, the Long Beach Bond Finance Authority (LBBFA) entered into a series of interest rate swaps in connection with the 2007 Gas Prepay Bonds, Series B (Prepay Bonds) in the amount of $251.7 million. In July 2009, a tender offer was submitted to bondholders reducing the Prepay Bond’s outstanding notional amounts to $69.0 million as follows:

2 Percentages are weighted average.
3 The weighted average floating rate is based on the present value of 67% of the forward three- month LIBOR rate curve at September 30, 2020, plus the indicative spread.

The objective of the swap was to effectively change the variable interest rate on the Prepay Bonds to a synthetic weighted average fixed rate of 4.9 percent (pay-fixed interest rate swap). The Prepay Bonds and the related swap agreements mature on the dates specified above and the swap’s notional amount of $69.0 million matches the $69.0 million variable-rate Prepay Bonds. The swap was effective at the same time the Prepay Bonds were issued on October 18, 2007.

Starting in fiscal year 2008-09, under the swap agreement, LBBFA paid Merrill Lynch Capital Services, Inc. fixed payments based on the above schedule. In October 2007, the Alternative Floating Rate Option was used to calculate interest paid to LBBFA. The Alternate Floating Rate Option means a per annum rate, not to exceed the maximum interest rate payable on the Prepay Bonds, expressed as a decimal, equal to 67 percent of the three-month LIBOR, as quoted by the British Bankers Association (BBA), plus a spread as defined above, not to exceed a rate of 15 percent per annum for any calculation period.

Various
Notional Effective Maturity
Type Objective Amoun t Date Dates to: Terms
Pay-Fixed To reduce the risks associated $69.0 11/18/2007 11/15/2033 Receive 67% Interest with the change in interest million LIBOR plus Rate Swap rates related to the 2007 1.432%, pay
Series B Variable-rate Bonds. fixed at 4.931%
Commodity To hedge against a reduction 89.7 11/18/2007 9/30/2037 Pay variable Forward in revenues resulting from million receive fixed Contract changes in monthly for scheduled
commodity prices. notional
quantities.

MMBtu
1 Maturity
Date
Notional
Amounts
(in thousands) Variable Rate
11/15/2025 19,195$ 4.903% 1.497% 1.410%
11/15/2026 25,175 4.930% 1.517% 1.430%
11/15/2027 24,630 4.955% 1.537% 1.450%
11/15/2033 5 5.067% 1.637% 1.550%
69,005$ 4.931% 2 1.519% 3 1.432% 2
Synthetic
Fixed Rate Spread
87 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Commodity Swap Objective and Terms: The City entered into a natural gas commodity price sale agreement with Royal Bank of Canada Capital Markets (RBC) to hedge against a reduction in its gas sale revenues resulting from changes in monthly market index prices. Under the swap agreement, the City pays a floating natural gas price over a 30-year peri od and receives specified fixed natural gas prices for notional quantities of natural gas as determined in the Prepaid Gas Agreement. In consideration for the agreement, the City remitted $892.6 million to the seller. Settlement provisions of the contract permit the City to take delivery of the gas or to pay a settlement price equal to the applicable Index Price (NGI So Cal Border Index) for the month in which the ga s delivery occurs, less $0.83 per one million MMBtu.

The swap was effective at the same time the Prepay Bonds were issued on October 18, 2007 and continues through September 30, 2037.

Tender Offer: In July 2009, the City executed a tender offer for a portion of the underlying Prepay Bonds. The results of the tender offer reduced the amount of outstanding variable-rate Prepay Bonds associated with the interest rate swap by $182.7 million and the City’s purchase volume of natural gas over the life of the commodity swap agreement by 60 million MMBtu.

Fair Value: The interest rate swap, with the market price quoted by Bank of America-Merrill Lynch, had a negative fair value of approximately $13.9 million on October 1, 2020. During the fiscal year ending September 30, 2021, the fair value further increased by $3.8 million to a negative fair value of $10.1 million. The fair value for the interest rate swap is described as the exit price, which is based on the London Interbank Offered Rate (LIBOR) swap rate. The interest rate swap is classified as Level 2 in the fair value hierarchy as the LIBOR swap rate is observable for the full term of the swap.

The commodity swap, with the market price quoted by RBC, had a fair value of $610.8 million on October 1, 2020. During the fiscal year, fair value decreased $167.0 million to a fair value of $443.8 million as of September 30, 2021. The fair value for the commodity swap is based on RBC’s quoted price.

The commodity swap is classified as Level 3 as the valuation relies primarily on unobservable inputs.

Fair values are based on mark-to-market valuations provided by the swap counterparties. The following table provides the details for the changes in fair value for both derivative instruments (in thousands):

Information on the effects of these transactions on the financial statement presentation can be found in Note 23 to the basic financial statements.

Fair Value, Change Fair Value,
Maturity October 1, in Fair September
Date 2020 Value 2021
Interest Rate Swap
11/15/2025 (3,261)$ 910$ (2,351)$
11/15/2026 (5,011) 1,368 (3,643)
11/15/2027 (5,588) 1,504 (4,084)
11/15/2033 (2) 1 (1)
(13,862) 3,783 (10,079)
Commodity Swap
9/30/2037 610,803 (166,970) 443,833
Total 596,941$ (163,187)$ 433,754$
88 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Credit Risks: As of September 30, 2021, the interest rate swap counterparty was rated AA- by Fitch Ratings with a Stable outlook. It aligns with the counterparties ratings upgrade of Bank of America Corporation’s (BAC) Long-Term Issuer Default Rating (IDR) to AA-. Further, these ratings reflect the credit quality of the BAC and Long Beach Energy Resources (LBER), the City’s gas distribution utility.

Merrill Lynch Commodities, Inc., a wholly owned subsidiary of Merrill Lynch and Co. Inc. (Guarantor), entered into a Prepaid Natural Gas Purchase and Sale Agreement with the LBBFA to sell and deliver gas to the LBBFA. On July 12, 2012, the City, the Guarantor, and the Bank of New York Mellon Trust Company, N.A. (Custodian) entered into a Pledge Collateral and Custodial Agreement, pursuant to Section 21.2 of the Prepaid Gas Agreement, for purposes of securing the obligations of the Seller and Guarantor to pay the Purchaser the Unearned Amount in the event an Early Termination Date occurs and the Unearned Amount is owed by the Seller or Guarantor to the Purchaser. The Custodian for benefit of the City holds a perfected interest in the collateral pledged. BNY Mellon remains in its role as Trustee since inception of the bonds while the collateral custodian role has migrated to Wells Fargo and most recently to Principal Custody Solution.

Credit risk exposure was deemed to be sufficiently mitigated through collateral as stipulated in the investment agreement. The RBC as the commodity swap provider has a strong credit profile. The proceeds of the bond issue are used to prepay the Guarantor for specified quantities of natural gas, deliverable to the LBBFA over a 30-year period. Bond holders rely on the supplier to deliver the gas or make a cash payment to the issuer in lieu of delivery over the life of the bonds. LBBFA delivers the gas to the City, which is obligated to purchase delivered gas as an operating expense of LBER, its gas distribution utility.

In March 2019, Moody’s upgraded its long-term rating from Aa3 to A2 to correspond to BAC’s upgrade, the parent of Merrill Lynch Commodities, Inc. and the City’s Gas utility.

Interest Rate Swap Payment and Associated Debt: Using rates as of September 30, 2021, debt service requirements of the variable-rate debt and net swap payments, assuming the current interest rate remains the same for their term, were as follows (in thousands):

As rates vary, variable-rate bond interest payments and net swap payments will vary.

Termination Risks: In accordance with the Trust Indenture and the Prepaid Natural Gas Purchase and Sale Agreement, the issuer has the right to optionally redeem Prepay Bonds either pursuant to the covered indenture at no market risk or a Triggering Event as described in the Prepaid Natural Gas Purchase and Sale Agreement.

Fiscal Year
Ending Net Swap Total
September 30 Principal Interest Payments Interest
2022 -$ 3,403$ 214$ 3,617 $ 2023 - 3,403 195 3,598 2024 - 3,403 178 3,581 2025 19,195 2,697 226 2,923 2026 25,175 1,531 176 1,707 2027 - 2031 24,630 306 118 424 2032 - 2033 5 - - - Total 69,005$ 14,743$ 1,107$ 15,850$
Variable-Rate Bonds
89 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 13 – RETIREMENT PROGRAMS
Plan Description – California Public Employees’ Retirement System (CalPERS) Plan Description – The City contributes to the CalPERS agent multiple-employer defined benefit pension plans (Plans). CalPERS acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution.

CalPERS issues publicly available reports that incl ude a full description of the pension plans including benefit provisions, assumptions and membership information. All qualified permanent employees are eligible to participate in the City’s separate Safety (police and fire) or Miscellaneous (all other) Plans. The reports can be found on the CalPERS website.

Benefits Provided – CalPERS provides 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, age at retirement and final compensation. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligib le for non-duty disability benefits after 10 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 Plans’ provisions and benefits in effect at September 30, 2021, are summarized in the following table:

On or after
October 1, 2006
Prior to and prior to On or after
Hire date October 1, 2006 January 1, 2013 January 1, 2013 Benefit formula 2.7% @ 55 2.5% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service
Benefit payments Monthly for life
Retirement age 50- 55 50 - 55 52 - 62
Required Contribution Rates
Employee 8.0% 8.0% 6.5%
Employer 28.446% 28.446% 28.446%
Percentage of Eligible Compensation
Monthly benefits 2.0% to 2.7% 2.0% to 2.5% 1.0% to 2.0% On or after
October 1, 2006
Prior to and prior to On or after
Hire date October 1, 2006 January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 55 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service
Benefit payments Monthly for life
Retirement age 50 - 55 50 50 - 57
Required Contribution Rates
Employee 9.0% 9.0% 12.3%
Employer 44.443% 44.443% 44.443%
Percentage of Eligible Compensation
Monthly benefits 2.4% to 3.0% 3.00% 2.0% to 2.7%
Miscellaneous
Safety
90 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Employees Covered – Based on the June 30, 2020 funding valuation report, the following employees were covered by the benefit terms for each Plan:

Contributions – California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unf unded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

The City’s contribution rates may change if plan contracts are amended. Payments made by the City to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

CalPERS Net Pension Liability
The City’s net pension liability for both Plans is measured as the total pension liability, less the plan’s fiduciary net position. Net pension liabilit y is measured as of June 30, 2021 (measurement date), using the actuarial valuation report as of June 30, 2020 rolled forward using standard actuarial procedures. At September 30, 2021, the City reported net pension liability of $527.9 million for both plans. A summary of principal assumptions and methods used to determine the net pension liability is as follows:

Actuarial Assumptions – The total pension liabilities were determined using the following actuarial assumptions:

Miscellaneous Safety
Active employees 3,528 1,261
Inactive employees or beneficiaries currently receiving benefits 4,557 1,805 Inactive employees entitled to but not yet receiving benefits 4,417 334 Miscellaneous Safety
Valuation Date (VD) June 30, 2020 June 30, 2020
Measurement Date (MD) June 30, 2021 June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Projected Salary Increase
Investment Rate of Return 7.15% 7.15%
Mortality 11
Entry Age Normal
Varies by Entry Age and Service
1 The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post- retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December2017 that can be found on the CalPERS website.
91 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. Th e long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Re tirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB Statement No. 68 section.

The long-term expected rate of return on pens ion plan investments of 7.15% was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

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

The following table reflects the long-term expected real rate of return by asset class for both Safety and Miscellaneous Plans. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class
Assumed Asset
Allocation
Real Return
Years 1 - 10
a
Real Return
Years 11+
b
Public Equity 50.00% 4.80% 5.98%
Fixed Income 28.00 1.00 2.62
Inflation Assets 0.00 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
a
An expected inflation of 2.00% used for this period
b
An expected inflation of 2.92% used for this period
92 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Changes in the CalPERS Net Pension Liability
The following tables show the changes in the net pension liability for each Plan (in thousands):

Total Pension Plan Fiduciary Net Pension
Miscellaneous Plan Liability Net Position Liability/(Asset) Balance at July 1, 2020 (MD) 2,813,763$ 2,153,414$ 660,349$ Changes in the year:

Service Cost 45,016 - 45,016 Interest on Total Pension Liability 196,483 - 196,483 Differences between Actual and
Expected Experience (13,138) - (13,138) Contribution - Employer - 78,158 (78,158) Contribution - Employee - 19,885 (19,885) Net Investment Income - 478,175 (478,175) Administrative Expenses - (2,151) 2,151 Net Plan to Plan Resource Movement - 7 (7) Benefit Payments, including Refunds
of Employee Contributions (150,237) (150,237) - Net changes 78,124 423,837 (345,713) Balance at June 30, 2021 (MD) 2,891,887$ 2,577,251$ 314,636$ Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Safety Plan Liability Net Position Liability/(Asset)
Balance at July 1, 2020 (MD) 2,723,971$ 2,178,824$ 545,147$ Changes in the year:

Service Cost 45,592 - 45,592 Interest on Total Pension Liability 191,618 - 191,618 Differences between Actual and
Expected Experience 1,763 - 1,763 Contribution - Employer - 71,008 (71,008) Contribution - Employee - 16,780 (16,780) Net Investment Income - 485,277 (485,277) Administrative Expenses - (2,177) 2,177 Net Plan to Plan Resource Movement - (7) 7 Benefit Payments, including Refunds
of Employee Contributions (137,111) (137,111) - Net Changes 101,862 433,770 (331,908) Balance at June 30, 2021 (MD) 2,825,833$ 2,612,594$ 213,239$ Increase (Decrease)
93 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following table presents the net pension liability of the City for each plan as of the measurement date, calculated using the discount rate of 7.15 percent, compared to a discount rate that is 1 percentage point lower (6.15%) or 1 percentage point higher (8.15%). Amounts shown below are in thousands:

Pension Plan Fiduciary Net Position – Detailed information about each Plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Pension Income and Deferred Outflows/Inflows of Resources Related to CalPERS Pensions For the year ended September 30, 2021, the City recognized pension income of $4.1 million and $11.1 million for the Miscellaneous and Safety Plan, respectively.

At September 30, 2021, the City reported pension related deferred outflows of resources and deferred inflows of resources from the following sources (in thousands):

The $109.2 million reported as deferred outflows of re sources related to contributions made by the City subsequent to the measurement date of June 30, 2021 will be recognized as a reduction of the net pension liability in the year ending September 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension income as follows (in thousands):

Net Pension Liability/ (Asset) 1% Decrease
(6.15%)
Discount Rate
(7.15%)
1% Increase
(8.15%)
Miscellaneous 681,611$ 314,636$ 10,334$ Safety 586,718 213,239 (94,310) Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension Contributions Subsequent
to the Measurement Date 59,961$ - 49,249$ - 109,210$ -$ Differences Betw een Actual and
E xpected E xperience - (10,154) 6,343 (2,653) 6,343 (12,807) N et Differences betw een
Projected and Actual Earnings
on Plan Investments - (235,509) - (238,841) - (474,350) Change in Proportion 9,626 (9,626) 1,609 (1,609) 11,235 (11,235) Total 69,587$ (255,289)$ 57,201$ (243,103)$ 126,788$ (498,392)$ Miscellaneous Plan: Safety Plan: Total
Year Ending Year Ending Year Ending
September 30 Amount September 30 Amount September 30 Amount 2022 (65,331)$ 2022 (56,032)$ 2022 (121,363)$ 2023 (58,647) 2023 (55,893) 2023 (114,540) 2024 (56,427) 2024 (56,986) 2024 (113,413) 2025 (65,258) 2025 (66,240) 2025 (131,498) Total (245,663)$ Total (235,151)$ Total (480,814)$ TotalMiscellaneous Plan: Safety Plan:
94 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 14 – POSTEMPLOYMENT HEALTHCARE BENEFITS
Plan Description
The City provides postemployment healthcare benef its through its City of Long Beach Retiree Health Care plan (OPEB Plan), a single-employer plan. The OPEB Plan covers all eligible full-time employees of the City. City Council has the authority to establish and amend the benefit terms currently permitted by Ordinance No. C-7556. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

Benefits Provided
The OPEB Plan provides health, dental and long-term care insurance for retirees and their dependents as long as (a) that employee participated in a City provided insurance program of that type during the year immediately preceding retirement, (b) the employee has not attained the eligibility age for Medicare payments, and (c) the employee has attained the minimum retirement age for the employee’s retirement plan.

Benefits are administered through a third-party provider, and the full cost of benefits is covered by the OPEB Plan up to the point where the value of the retirees unused sick leave has been exhausted.

Retirees who have exhausted their unused sick leave can still access the OPEB Plan by paying the OPEB Plan premium out of pocket. As of September 30, 2021, the count of employees covered by the benefit terms was:

Total OPEB Liability
At September 30, 2021, the City’s total OPEB liability was $8.8 million. The total OPEB liability in the September 30, 2020 actuarial valuation was deter mined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Inactive employees currently receiving benefits 1,051
Active employees 4,663
Total 5,714
Valuation Date September 30, 2020
Measurement Date September 30, 2020
Actuarial Cost Method Entry Age
Actuarial Assumptions:

Inflation 2.50%
Discount Rate 2.41%
Payroll Increases Aggregate 2.75%
Merit
Health Care Cost Trend
Rates
Mortality, Termination, CalPERS 1997-2015 Experience Study Disability, Retirement
Mortality Improvement Mortality projected fully generational with Scale MP-2020 Participation Rates:

Miscellaneous Plan 75%, 100% select City plans
Safety 90%, 85% select City plans
Based on Fidelity Municipal Bond GO AA
20-year Bond Index

6.75% for 2022, decreasing to an ultimate rate of 3.75% in 2076
CalPERS 1997-2015 Experience Study
95 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Changes in the Total OPEB Liability (in thousands)

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate

OPEB Income and Deferred Outflows and Deferred Inflows Related to OPEB For the year ended September 30, 2021, the City recognized an OPEB income of $2.7 million. At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources (in thousands):

The $3.0 million reported as deferred outflows of resources related to contributions made by the City subsequent to the measurement date will be recogni zed as a reduction of the net OPEB liability in the year ending September 30, 2022.

Balance at October 1, 2020 9,655$
Service Cost 1,718
Interest on Total OPEB liability 265
Difference between Expected
and Actual Experience 1,211
Change in Assumptions (539)
Benefit Payments (3,525)
Net Changes (870)
Balance at September 30, 2021 8,785$
Discount
1% Decrease Rate 1% Increase
(1.41 %) (2.41 %) (3.41 %)
Total OPEB Liability (Asset) (7,304)$ 8,785$ 19,814$ Healthcare
1% Cost Trend 1%
Decrease Rate Increase
Total OPEB Liability (Asset) 18,099$ 8,785$ (5,669)$ Deferred Deferred
Outflows Inflows
of Resources of Resources
Amounts paid subsequent to measurement date 3,029$ -$ Difference between expected and actual experience 1,087 (4,829) Change in assumptions 4,409 (32,833)
Change in proportion 2,932 (2,932)
Total 11,457$ (40,594)$
96 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Amounts reported as deferred outflows of resources a nd deferred inflows of resources related to OPEB will be recognized in OPEB income over the next 9.5 years, as follows (in thousands):

NOTE 15 – SELF-INSURANCE PROGRAMS
The City has adopted separate insurance programs for workers’ compensation and general liability claims. The City is self-insured for workers' compensation and general liability for the first $5 million per occurrence, except for law enforcement’s general liability which has $10 million per occurrence self- insured retention. In addition, the City has excess insurance coverage for workers’ compensation and general liability claims up to $150 million and $50 million, respectively.

At September 30, 2021, the City accrued non- discounted estimates totaling $176.4 million for workers’ compensation and general liability claims. This represents estimates of amounts to be paid for actual and incurred-but-not-reported claims based upon past experience, modified for current trends and developments. The City has recorded in the Workers’ Compensation Insurance Fund a current liability of $20.5 million and a long-term liability of $111.6 million. The City has recorded in the General Liability Insurance Fund a current liability of $11.1 million and a long-term liability of $33.2 million.

The ultimate amount of losses incurred through September 30, 2021 is dependent on future developments. Based upon actuary evaluation, City’s management believes that the aggregate accrual adequately represents such losses.

A summary of the City’s claims activity for the fiscal years ended September 30, 2021 and 2020 is as follows (in thousands):

Amount
Year Ending to be
September 30 Recognized
2022 (4,698)$
2023 (4,698)
2024 (4,698)
2025 (4,883)
2026 (4,814)
2027 -2031 (8,375)
Total (32,166)$
Workers'
Compensation
Claims
General
Liability
Claims Total
Balance at October 1, 2019 138,054$ 33,502$ 171,556$ Additions 13,840 17,931 31,771
Payments (14,909) (8,382) (23,291)
Balance at September 30, 2020 136,985 43,051 180,036 Additions 7,511 4,434 11,945
Payments (12,416) (3,180) (15,596)
Balance at September 30, 2021 132,080$ 44,305$ 176,385$ 97 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 16 – GOVERNMENTAL FUND BALANCES AND FUND DEFICITS
As of September 30, 2021, total fund balances for the City’s major and non-major governmental funds are as follows (in thousands):

Fund Deficits
The Gas Utility Fund, a major proprietary fund, reported a deficit net position of $9.5 million as of September 30, 2021. This deficit was primarily attributed to the transfer of $13.5 million to the General Fund. Refer to Note 6 to the Basic Financial Statements for additional details. City management believes that the cash position of the fund is sufficient to support the utilities ongoing operations.

The Tidelands Oil Revenue Fund, a nonmajor proprietary fund, reported a deficit net position of $55.6 million as of September 30, 2021. Tidelands Oil Revenue Fund deficit net position is due to a future oil field abandonment liability of $110.3 million, reflecting an increase of $7.7 million during the fiscal year.

City management will continue to accumulate futu res resources to pay for the oil field abandonment liability.

The Development Services Fund, a nonmajor proprietary fund, reported a deficit net position of $2.8 million as of September 30, 2021. This deficit resulted from decreased operating revenues compared to the prior fiscal year and higher maintenance and other operation expenses incurred during the year.

However, City management believes that the cash position of the fund is sufficient to support the development services ongoing operations.

General Housing Other Total
Capital Assistance Governmental Governmental
General Projects Special Revenue Funds Funds
Fund Balances (Deficit):

Nonspendable:

Prepaid Expense and Deposits 2,127$ 1,489$ -$ 927$ 4,543$ Subtotal 2,127 1,489 - 927 4,543 Restricted for:

Debt Service - - - 32,759 32,759 Public Safety 2,836 - - 4,588 7,424 Public Health - - - 13,049 13,049 Community and Cultural - - 23,336 74,404 97,740 Other Purposes - - - - - Public Works - 62,462 - 9,349 71,811 Subtotal 2,836 62,462 23,336 134,149 222,783 Committed to:

Community and Cultural - - - 1,414 1,414 Other Purposes - Emergency Reserve 48,378 - - - 48,378 Other Purposes - Operating Reserve 15,968 - - - 15,968 Oil Abandonment 12,197 - - - 12,197 Subtotal 76,543 - - 1,414 77,957 Assigned to:

Subsequent Year's Appropriations 72,516 - - - 72,516 Unfunded Liabilities and Commitments 35,142 - - - 35,142 Infrastructure Reserve - - - - - Community and Cultural - - - 373 373 Public Works - 94,109 - - 94,109 Subtotal 107,658 94,109 - 373 202,140 Unassigned (Deficit) (16,483) - - - (16,483) Total Fund Balances 172,681$ 158 ,060$ 23 ,336$ 136,863$ 490,940$ 98 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

The Towing Fund, a nonmajor enterprise fund, reported a deficit net position of $2.4 million as of September 30, 2021. This deficit primarily resulted from the recognition of a net pension liability of $1.9 million and compensated absences of $0.6 million. City management believes that the cash position of the fund is currently sufficient at 40 days of expenses to support ongoing operations.

As of September 30, 2021, the Workers’ Compensa tion insurance fund reflected a deficit net position of $101.1 million. This deficit included the impact of accrued liabilities for Accrued Claims and Net Pension Liability of $132.1 million and $4.0 million respectively. City management believes the cash position is sufficient to cover the current costs rela ted to workers’ compensation claims and current operating costs. The City management believes the deficit net position will be recovered through future charges for services, adjusted as appropriate, and has made reasonable adjustments to amounts charged to City departments to ensure adequate cash positions are maintained.

As of September 30, 2021, the General Liability insurance fund reflected a deficit net position of $49.7 million. This deficit included the impact of accrued liabilities for Accrued Claims and Net Pension Liability of $44.3 million and $2.4 million respectively. City management believes the deficit net position will be recovered through future charges for services , adjusted as appropriate, and has made reasonable adjustments to amounts charged to City departments to ensure adequate cash positions are maintained.

NOTE 17 – OIL FIELD ABANDONMENT LIABILITY
Tideland Oil Revenues
The City is required to administer certain tideland properties for the State of California (State).

Revenues received from the City’s tidelands area are restricted by State law to tidelands-related purposes.

The trust agreement provides for the establishment of separate operating funds to account for the various activities conducted in the City’s tideland areas.

The City utilizes contractors to oversee oil production on the tidelands portion of the Wilmington Oil Field. Oil revenues (net of administrative and operating expenses, a $1,000,000 fixed annual retention by the City, and the City’s participation in the Optimized Waterflood Program Agreement) are remitted to the State. The use of the funds retained by the City are restricted for tidelands-related purposes to include the City’s marinas, beaches, waterways, and convention center.

Annually, the City estimates the State’s share in the costs of future abandonment and site clearance of the oil properties. At September 30, 2021, the State’s total estimated abandonment cost liability is $966.4 million, which increased by $56.6 million from fiscal year 2020. This estimate is based on the number and life of productive wells, general changes in the life of the oil field, and changes in oil prices.

As of September 30, 2021, and as provided for in Asse mbly Bill (AB) 137, the State has put aside and deposited approximately $300.0 million of the $966.4 million estimated liability into the State’s Oil Trust Fund - Abandonment Reserve. In the Tidelands Oil fund, the abandonment reserve set aside for the estimated liability is $46.8 million.

At September 30, 2021, the Tidelands Operating Fund recorded an estimated oil field abandonment cost liability of $110.3 million increasing by $7.7 million from fiscal year 2020. This estimate is based on the number and life of productive wells, general changes in the life of the oil field, and changes in oil prices. The City’s ownership interests in the Wilmington Oil Field also results in the City recording a proportionate share of oil field abandonment costs currently estimated at $23.1 million of which $12.2 million has been funded in the Upland Oil Fund as of September 30, 2021.

99 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Subsidence
In accordance with State law, the City estab lished a Reserve for Subsidence Contingencies to indemnify the City, State, and contractors for claims or costs arising from subsidence alleged to have resulted from oil operations. A maximum of $40.0 million, plus accrued interest, was originally set aside for this purpose. At present, 100 percent of the interest accrues to the Reserve for Subsidence. As of September 30, 2021, the reserve balance within the Subsidence Fund is $191.2 million.

As part of the adoption of the State’s 2005 fiscal year budget, 100 percent of this fund’s interest earnings for calendar years 2004 and 2005 were eligible to be loaned to the City’s General Fund, with repayment commencing in fiscal year 2008, without interest, in equal annual installments of $500 thousand for up to 20 years. This action was taken to mitigate the impact of the City in making a $5 million contributions to the State in both fiscal years 2005 and 2006. At September 30, 2021, total loan to the City’s General Fund and interest retained amounts to $614 thousands.

NOTE 18 – POLLUTION REMEDIATION OBLIGATIONS

BKK Sites
Victoria Golf Course: Between 1947 and 1949, the City disposed of municipal waste in a landfill owned by BKK Corp located in Carson, California. It has been determined that the site is the source of groundwater contamination. The State Department of Toxic Substances Control (DTSC) has identified the City as a potentially responsible party (PRP) under the Resource Conservation and Recovery Act and has threatened enforcement action. The County of Los Angeles has threatened a cross-claim against the City for contribution. As of September 30, 2021, there was insufficient information to develop an estimate of potential remediation costs attributable to the City. The City has an Environmental Pollution Insurance Policy that may cover some costs for the period in question.

West Covina: From the mid-1960s through 1987, the City disposed of municipal waste in a landfill owned by BKK Corp located in West Covina, California. It has been determined that the site is the source of groundwater contamination. The State DTSC has a cleanup order to PRPs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The primary PRPs have entered into a consent decree. Those parties in turn have thr eatened to compel the City to contribute part of the clean-up costs. As of September 30, 2021, there was in sufficient information to develop an estimate of potential remediation costs attributable to the City. The City has an Environmental Pollution Insurance Policy that may cover some costs for the period in question.

West Covina Site
Chevron (USA), Exxon Mobile Corporation, Conoco Phillips Company, Long Beach Oil Development Company (LBOD), and American Energy Operations, Inc. have been named in cleanup actions (Imminent and Substantial Endangerment Determination and Order and a Remedial Action Order from the California DTSC). The site is located in West Covina. In response, the parties have filed claims against the City seeking unspecified damages. In 2005 and 2006, the parties entered into tolling agreements with the City. To date, no costs have been incurred in this matter. As of September 30, 2021, there was insufficient information to develop an estimate of potential remediation costs attributable to the City. The City has an Environmental Pollution Insurance Policy that may cover some costs for the period in question.

100
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

55th Way Landfill (formerly Paramount Landfill)
The City operated the Paramount Landfill from 1945 to 1948. Construction began after substantial design and permitting work to close the landfill according to then current standards and was completed in August 2006. A portion of the landfill was develope d into Davenport Park in 2006. The City purchased an adjacent parcel in 2006 and developed Phase II of Davenport Park. In May 2009, the Los Angeles Regional Water Quality Control Board (LA Board) notified the City that additional groundwater monitoring is required for this site. The City implements an ongoing Solid Waste Assessment Test (SWAT) groundwater monitoring program for the 55 th Way Landfill pursuant to an LA Board Water Discharge Requirements Order (WDRO) and General Monitoring and Reporting Program Order (MRPO).

Groundwater monitoring is now required on a recurring semi-annual basis until such time that the LA Board rescinds the WDRO or otherwise approves a reduction or elimination of the MRPO. In May 2019, the City was notified by the Los Angeles County Department of Public Health (LACDPH) that on-site soil vapor probes showed exceedances in methane ga s concentrations. LACDPH has since required the City to provide a monitoring and remediation plan and a gas control work plan. As of September 30, 2021, the estimated liability of potential remediation is a one-time cost of $2.8 million with ongoing landfill gas monitoring costs of approximately $80 thousand per year.

El Cortez (formerly El Ranchito)
In 2009, the former Redevelopment Agency purchased property at 5301 Long Beach Blvd. In fiscal year 2012, the Agency initiated a voluntary remediation project at the site. In July of 2015, the LA Board requested specific remedial and groundwater monito ring action be implemented. The original estimated remaining liability associated with the groundwater monitoring, based on a cost estimate from the monitoring service provider, is $485 thousand. As of September 30, 2021, the remaining liability for the monitoring was $319 thousand. There is no reasonable expectation of any recovery associated with these remediation efforts. The property has been “remediated” and reported as closure of the site/case.

Cowelco
In November of 2012, the LA Board notified the Agency that additional groundwater monitoring was necessary at 1669 W. Anaheim Street based on their review of the Site Assessment Report. The LA Board again notified the Agency that additional assessment was necessary after their review of the soil data and groundwater monitoring performed in 2014. In August of 2015, the California State Water Resources Control Board (Control Board) issued a letter denying the City’s request for closure and requiring further action. In January 2021, the LARWQCB issued a directive to take additional corrective action in response to unauthorized storage tank release at the site, likely related to impacts from an adjacent upgradient site.

Compliance with the LARWQCB and Control Board requests is anticipated to cost a total of approximately $117 thousand. As of September 30, 2021, the remaining liability associated with compliance is estimated at $176 thousand. It is not known if additional monitoring or remediation will be required. There is no reasonable expectation of any recovery associated with these remediation efforts.

Metropolitan Transportation Authority (MTA) Bus Parking Lot The LA Board has notified the City that additional ground water monitoring for the former MTA bus parking lot may be required. MTA pledged $300 thousand to pay for any future monitoring costs when the City acquired the property. Management has not recorded a liability because it is believed that the costs associated with any future monitoring would be less than the pledge by the MTA. At September 30, 2021, the site is still being evaluated and the City is waiting for final determination from the LA Board as to the extent of any additional monitoring activities.
101
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Leaking Underground Storage Tanks (LUST)
In the early 1990s, the City was named a responsible party for a number of City owned and/or operated LUST sites by the LA Board. All of the tanks have since been removed. The sites are located at Fire Station 7, Fire Station 10, Fire Station 11, Fire St ation 17 and 2929 East Willow Street. The LA Board has directed that these sites be evaluated for remediation and continued monitoring activities. The City has successfully remediated Fire Stations 10 and 11, meeting the requirements of the Water Board’s low threat closure policy (LTCP). These two facilities are currently performing post-closure monitoring activities. As of September 30, 2021, the City remains under a Board order to continue monitoring the sites. The estimated related liability for the future remediation is $900 thousand. For its monitoring and remediation efforts, the City submitted claims for reimbursable remediation cost to the State UST Cleanup Fund. As of September 30, 2021, the City obtained a reimbursement of costs related to the closed sites amounting to $2.8 million.

Harbor Warehouse
In July of 2017, the Harbor, as result of a hazardous building materials survey of a warehouse, identified the presence of environmentally sensitive materials requiring abatement activities if the facility is to remain in use. The estimated remediation liability for abatement decreased to $2.6 million for the year ended September 30, 2021. The Department has received bid proposals related to the remediation project that are currently under review as part of the selection process. There is no reasonable expectation of any recovery associated with these remediation efforts.

Pier E Container Yard-Intermodal Railyard
Environmentally contaminated soil materials were found during the project’s construction. The Board of Harbor Commissioners approved additional funding to dispose of these asbestos contaminated soil materials.

Demolition of Former Harbor Department Administration Building Complex Environmentally sensitive materials were identified in the building and a remediation effort will be required as part of the demolition procedures. This project is currently out for bid and completed.

NOTE 19 – INVESTMENT IN JOINT VENTURES
Intermodal Container Transfer Facility Joint Powers Authority (ICTF) The City’s Harbor Department and the Port of Los Angeles (Venturers) entered into a joint venture agreement to form ICTF for the purposes of financing and constructing an intermodal container transfer facility (facility) to transfer cargo containers between trucks and railroad cars. The facility was leased to Southern Pacific, which merged with Union Pacific (Tenant) in 1996. The facility was developed by the Tenant who assumed operational responsibility for the facility. The Venturers’ share net income and equity distributions from ICTF equally. The Harbor’s share of the ICTF’s net position as of September 30, 2021 totaled $3.7 million. The ICTF financial statements for the year ended June 30, 2021 can be obtained from the Harbor.

102
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 20 – DEFERRED COMPENSATION
The City offers its employees a deferred compensation plan (457 Plan) created in accordance with Internal Revenue Code, Section 457. The 457 Plan permits employees to defer a portion of their salary and all amounts of compensation deferred under the 457 Plan and all income attributable to those amounts are held in trust accounts for the exclusive benefit of the participants and their beneficiaries.

All investment decisions under the 457 Plan are the responsibility of the 457 Plan participants. The City has no liability for losses under the 457 Plan, but does have the duty of due care that would be required of an ordinary prudent i nvestor. The accumulated assets of th e 457 Plan are not required to be reported in the accompanying basic financial statements.

If 457 Plan participants retire or terminate servi ce with the City, they may be eligible to receive payments under the 457 Plan in accordance with provisi ons thereof. In the ev ent of serious financial emergency, the City may approve, upon request, withdrawals from the 457 Plan by the participants.

NOTE 21 – GAS UTILITY FUND

The Gas Utility Fund is comprised of the Gas Operating and LBBFA Gas Prepay Functions and is used to account for the activities associated with the di stribution of natural gas to the City’s customers.

The Gas Prepay Function was formed to account for the 2007A and 2007B Natural Gas bonds that were issued for the purchase of gas at a predetermined price. The schedules in the following pages summarize the activity and account balances that comprise the Gas Utility Fund:

103
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Gas LBBFA Gas Total Elimination Total
Operating Prepay Before Debit Gas Utility
Function Function Elimination (Credit) Fund
ASSETS
Current Assets:

Pooled Cash and Cash Equiv alents 58,085$ 65$ 58,150$ -$ 58,150$ Non-Pooled Cash and Cash Equivalents 1 88 89 - 89 Receiv ables:

Interest Receivable - 15 15 - 15 Accounts Receiv able 11,764 2,898 14,662 - 14,662 Due from Other Funds 629 - 629 (629) - Allowance for Receivables (3,023) - (3,023) - (3,023) Inv entory 3,679 - 3,679 - 3,679 Prepaid Gas - Current - 23,689 23,689 - 23,689 Other Assets 104 - 104 - 104 Total Current Assets 71,239 26,755 97,994 (629) 97,365 Noncurrent Assets:

Restricted Noncurrent assets:

Non-Pooled Investments - 27,085 27,085 - 27,085 Fair Value - Commodity Swap - 443,833 443,833 - 443,833 Capital Assets:

Land and Other Assets Not Being Depreciated 13,401 - 13,401 - 13,401 Property, Plant and Equipment
Capital Assets Net of Accumulated Depreciation 163,919 - 163,919 - 163,919 Prepaid Gas - Long-term - 310,780 310,780 - 310,780 Total Noncurrent Assets 177,320 781,698 959,018 - 959,018 Total Assets 248,559 808,453 1,057,012 (629) 1,056,383

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 3,795 10,079 13,874 - 13,874

LIABILITIES
Current Liabilities Payable from Current Assets:

Accounts Payable 6,447 - 6,447 - 6,447 Accrued Wages 645 - 645 - 645 Accrued Interest Payable 114 9,840 9,954 - 9,954 Due to Other Funds 1,341 629 1,970 (629) 1,341 Unearned Rev enues 1,407 - 1,407 - 1,407 Customers Deposits 2,680 - 2,680 - 2,680 Compensated Absences and Accrued Employee Benefits 2,003 - 2,003 - 2,003 Obligations under Capital Leases - Current 1,158 - 1,158 - 1,158 Bonds Payable Due within One Year - 16,040 16,040 - 16,040 Total Current Liabilities 15,795 26,509 42,304 (629) 41,675 Noncurrent Liabilities:

Fair Value - Interest Rate Swap - 10,079 10,079 - 10,079 Compensated Absences and Accrued Employee Benefits 4,607 - 4,607 - 4,607 Obligations under Capital Lease 10,333 - 10,333 - 10,333 Bonds Payable - 540,121 540,121 - 540,121 Net Pension Liability 15,457 - 15,457 - 15,457 Total OPEB Liability 272 - 272 272 Total Noncurrent Liabilities 30,669 550,200 580,869 - 580,869 Total Liabilities 46,464 576,709 623,173 (629) 622,544

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 13,390 443,833 457,223 - 457,223 Net Investment in Capital Assets 162,671 - 162,671 - 162,671 Restricted for:

Capital Projects 13,249 - 13,249 - 13,249 Unrestricte d 16,580 (202,010) (185,430) - (185,430) Total Net Position (Deficit) 192,500$ (202,010)$ (9,510)$ -$ (9,510)$

NET POSITION (DEFICIT)
September 30, 2021
(In Thousands)
City of Long Beach
Consolidated Schedule of Net Position
Gas Utility Fund
104
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Gas LBBFA Gas Total Elimination Total
Operating Prepay Before Debit Gas Utility
Function Function Elimination (credit) Fund
Operating Revenues:

Charges for Services 108,871$ 15,964 $ 124,835$ (15,964)$ 108,871 $ Other 3,059 - 3,059 - 3,059 Total Revenues 111,930 15,964 127,894 (15,964) 111,930 Operating Expenses:

Personnel Services 12,924 - 12,924 - 12,924 Purchases of Gas 35,686 (5,029) 30,657 (15,964) 14,693 Maintenance and Other Operations 18,702 24 18,726 - 18,726 Depreciation 7,724 - 7,724 - 7,724 Total Operating Expenses 75,036 (5,005) 70,031 (15,964) 54,067 Operating Income 36,894 20,969 57,863 - 57,863 Non-Operating Income (Expense):

Interest Income 480 796 1,276 - 1,276 Interest Expense - (28,689) (28,689) - (28,689) Loss on Disposition of Capital Assets (472) - (472) - (472) Other Income 347 - 347 - 347 Other Expense (729) - (729) - (729) Total Non-Operating Income (Expense) (374) (27,893) (28,267) - (28,267) Income (loss) before Contributions
and Transfers 36,520 (6,924) 29,596 - 29,596 Transfers:

Transfers In 980 - 980 - 980 Transfers Out (15,323) - (15,323) - (15,323) Change in Net Position 22,177 (6,924) 15,253 - 15,253 Net Position (Deficit), October 1 170,323 (195,086) (24,763) - (24,763) Net Position (Deficit), September 30 192,500$ (202,010) $ (9,510) $ -$ (9,510)$ (In Thousands)
City of Long Beach
Consolidated Schedule of Revenues, Expenses, and Changes in Fund Net Position Gas Utility Fund
For the Fiscal Year Ended September 30, 2021
105
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Gas LBBFA Gas Eliminations Total
INCREASE (DECREASE) IN CASH AND Operating Prepay Increase Gas Utility CASH EQUIVALENTS Function Function (decrease) Fund
Cash Flow s from Operating Ac tivities:

Receipts from Customers 92,806$ 15,854$ -$ 108,660$ Payments for Employee Salaries (19,144) - - (19,144) Payments for Goods and Services (7,594) (25) - (7,619) Other Income (Expense) - 26,756 (26,409) 347 (27,138) - 26,409 (729)
Net Cash Provided by Operating Activities 38,930 42,585 - 81,515 Cash Flow s from Non-Capital Financing Activities:

Transfers In 980 980
Payments of Principal on Bonds Payable 415 (14,405) - (13,990) Payments of Interest 273 (28,963) - (28,690) Transfers Out (15,323) - - (15,323) Net Cash Used for Non-Capital Financing Activities (13,655) (43,368) - (57,023) Cash Flow s from Capital and Related Financing Activities:

Payments for Capital Acquisitions (12,570) - - (12,570) Payments of Principal on Other Long-Term Obligations (1,735) - - (1,735) Payments of Interest (285) - - (285) Net Cash Used for Capital and Related Financing Activities (14,590) - - (14,590) Cash Flow s from Investing Ac tivities:

Payments for Investments (1,586) - - (1,586) Receipts of Interest 480 802 - 1,282 Net Cash Provided by (Used for) Investing Activities (1,106) 802 - (304) Net Increase (Decrease) in Cash and Cash Equivalents 9,579 19 - 9,598 Cash and Cash Equivalents - October 1 48,507 134 - 48,641 Cash and Cash Equivalents - September 30 58,086$ 153$ -$ 58,239$ RECONCILIATION OF OPERATING Gas LBBFA Gas Eliminations Total INCOME TO NET CASH PROVIDED BY Operating Prepay Increase Gas Utility (USED FOR) OPERATING ACTIVITIES Function Function (decrease) Fund Operating Income (Loss) 36,894$ 20,969$ -$ 57,863$ Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating Activities:

Depreciation and Amortization Expense 7,724 - - 7,724 Other Expense (382) - - (382) (Increase) Decrease in Accounts Receivable, Net (1,118) (104) 104 (1,118) Increase in Amounts Due from Other Funds 304 - - 304 Increase in Inventory (659) - - (659) Increase (Decrease) in Other Operating Assets/Gas Prepay (3,360) 26,756 - 23,396 Increase (Decrease) in Accounts Payable 3,064 (1) (104) 2,959 Increase in Accrued Wages Payable (6,220) - - (6,220) Increase in Amounts Due to Other Funds (1,729) (6) - (1,735) Decrease in Unearned Revenues (450) - - (450) (Increase) Decrease in Other Non-operating Assets 5,029 (5,029) - - Dec rease in Collections Held in Trust (167) - - (167) Total Adjustments 2,036 21,616 - 23,652 Net Cash Provided by Operating Activities 38,930$ 42,585$ -$ 81,515$ Gas Utility Fund
City of Long Beach
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Consolidated Schedule of Cash Flows
Other Expense
106
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021
As stated in Note 15 to the basic financial statements, the City is self-insured for its workers’ compensation and liability claims. As claims are made against the City, they are routinely evaluated and appropriate accrued liabilities are recorded. Certain of these claims may ultimately reach the trial level and could result in judgments against the City. While the ultimate adverse effect, if any, of claims and judgments against the City cannot be estimated with certainty, it is the opinion of management, based upon consultation with the City Attorney and outside legal counsel as applicable, that such judgments against the City will not have a material adverse effect on the City’s financial position beyond that already accrued for within the basic financial statements.

Potential Obligations Related to the Alameda Corridor Transportation Authority The Alameda Corridor Use and Operating Agreement was executed by the Harbor, the Harbor Department of the City of Los Angeles (Port of Los Angeles), the Alameda Corridor Transportation Authority (ACTA), and the Burlington Northern Santa Fe and Union Pacific Railroads. The agreement provides for a payment of funds, known as a “Shortfall Advance” to be made, under certain circumstances, to ACTA by the Harbor and the Port of Los Angeles. User fee and container charges paid by the railroads are used to pay debt service on ACTA financing, to establish and maintain a reserve account, and to pay ACTA’s reasonable expenses relating to administration of the rail corridor.

To the extent that the revenues from use and container charges are not sufficient to meet ACTA’s obligations, the Harbor and the Port of Los Angeles have agreed to advance the funds necessary to make up the difference. This obligation began after completion of the Corridor project and is limited to 40 percent of the total annual required amount, with the Harbor and the Port of Los Angeles each responsible for one-half of the required amount.

Any shortfall advance made by the Harbor and the Port of Los Angeles is reimbursable, with interest, by ACTA. The most recent Notice date August 15, 2021 indicates that there is no projected shortfall for ACTA’s fiscal year ending June 30, 2022.

Gerald Desmond Bridge Replacement (GDBR) Project
Construction of the new bridge began in 2013 and the bridge was opened to traffic on October 5, 2020, while the substantial completion date was declared by the Board of Harbor Commissioners on December 16, 2020. The bridge budget is a joint effort between CalTrans and Harbor. At the latest cost estimate review performed in September 2018, the bridge budget was $1.6 billion, which remained unchanged as of September 30, 2021. Funding of this project was from Harbor and various sources including Federal, State, and local grants. Commitments from these funding sources total $913.0 million added to Harbor’s contribution of $648.0 million.

As of September 30, 2021, the Harbor has incurred approximately $1.5 billion in costs to construct the replacement bridge. Of this total amount, approximately $753.5 million has been received from grants contribution since inception, and $7.7 million reported as part of due from other governments on Harbor’s basic financial statements as of September 30, 2021.

Pike Public Improvements
In fiscal year 2002, the City issued special assessment debt under the authority of the Mello-Roos Community Facilities Act for public improvements, mainly for a parking facility, in the Pike Development Project area. Although the debt does not constitute an indebtedness of the City, in order to facilitate such financing, the parking facility was subleased to the City for the purposes of issuing the Mello-Roos Bonds pursuant to a City sublease. According to the subleas e, the City is subject to an annual calculated lease payment up to $1.2 million through October 2032, plus net revenues from certain other Pike area parking operations, in the event the Pike garage does not generate sufficient net revenue to make bond payments.

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Gas Rates
The City of Long Beach Gas Enterprise Fund (LBGO) passes along the actual cost of natural gas it provides to its customers.

Effective October 1, 2007, LBGO renegotiated terms with local suppliers, which included a purchase price equal to LBGO’s lowest cost of gas purchased during the month of delivery with the understanding that their volumes will be supplemental to the prepay volumes purchased.

Effective November 1, 2007, the MLCI became the primary provider of natural gas for LBGO. The contract price is equal to the applicable market index price for the month in which the gas delivery occurs, less $0.83 per one million British thermal units (MMBtus) of gas delivered. LBGO reserves the gas prepay cost savings to facilitate funding of its gas utility’s long-term infrastructure requirements.

NOTE 22 – COMMITMENTS AND CONTINGENCIES
Commitments
At September 30, 2021, business-type and governmental funds had outstanding commitments for construction projects and purchases of goods and services, as follows (in thousands):

Governmental Activities
Business-Type Activities
Environmental Mitigation Credits
In September of 2019, Harbor entered into a nonoperating Memorandum of Understanding (MOU) with the City to purchase 19.7 mitigation credits from the Colorado Lagoon Restoration project for a total of $26.3 million, of which $1.3 million has already been advanced to the City in the form of a loan that remains outstanding. The remaining funds will be paid to the City as reimbursement for actual cost
incurred per the MOU terms from fiscal year 2020 through 2023. As of September 30, 2021 the MOU amount remains unchanged.

Self-Insurance
The City is the subject of numerous claims seeking recovery of monetary amounts. Such claims generally occur in the normal course of business and arise from several causes of action including general liability, employment-related matters, alleged violations of civil rights, recovery of questioned grant costs, and other incidental issues.

General Fund 2,603$
General Capital Projects 68,563
Housing Assistance 4
Non-major Governmental
Funds 12,225
Internal Service Fund 16,729
Total 100,124$
Gas Utility 322 $
Water 16,627
Tidelands Operating 7,829
Harbor 20,301
Non-major Business-Type Funds 19,150
Total 64,229$
107
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

As stated in Note 15 to the basic financial stat ements, the City is self-insured for its workers’ compensation and liability claims. As claims are made against the City, they are routinely evaluated and appropriate accrued liabilities are recorded. Certain of these claims may ultimately reach the trial level and could result in judgments against the City. While the ultimate adverse effect, if any, of claims and judgments against the City cannot be estimated with certainty, it is the opinion of management, based upon consultation with the City Attorney and outside legal counsel as applicable, that such judgments against the City will not have a material adverse effect on the City’s financial position beyond that already accrued for within the basic financial statements.

Potential Obligations Related to the Alameda Corridor Transportation Authority The Alameda Corridor Use and Operating Agreem ent was executed by the Harbor, the Harbor Department of the City of Los Angeles (Port of Los Angeles), the Alameda Corridor Transportation Authority (ACTA), and the Burlington Northern Santa Fe and Union Pacific Railroads. The agreement provides for a payment of funds, known as a “Shortfall Advance” to be made, under certain circumstances, to ACTA by the Harbor and the Port of Los Angeles. User fee and container charges paid by the railroads are used to pay debt service on ACTA financing, to establish and maintain a reserve account, and to pay ACTA’s reasonable expenses relating to administration of the rail corridor.

Any shortfall advance made by the Harbor and the Port of Los Angeles is reimbursable, with interest, by ACTA. The most recent Notice date August 15, 2021 i ndicates that there is no projected shortfall for ACTA’s fiscal year ending June 30, 2022.

Gerald Desmond Bridge Replacement (GDBR) Project
Construction of the new bridge began in 2013 and the bridge was opened to traffic on October 5, 2020, while the substantial completion date was declared by the Board of Harbor Commissioners on December 16, 2020. The bridge budget is a joint effort between CalTrans and Harbor. At the latest cost estimate review performed in September 2018, the bridge budget was $1.6 billion, which remained unchanged as of September 30, 2021. Funding of this project was fro m Harbor and various sources including Federal, State, and local grants. Commitments from these funding sources total $913.0 million added to Harbor’s contribution of $648.0 million.

NOTE 23 – DEFERRED OUTFLOWS AND DEFERRED INFLOWS OF RESOURCES At September 30, 2021, Deferred Outflows of Resources and Deferred Inflows of Resources are as follows:

Total
Nonmajor Total GASB 34 Adjusted
Governmental Governmental Conversion Governmenta l
General Funds Funds Adjustments Funds
Deferred Outflows of Resources:

Economic loss from the refunding of debt -$ -$ -$ 942 942$ Pension contributions after measurement date - - - 73,377 73,377 CalPERS difference between actual
and expected experience - - - 6,003 6,003 Change in pension allocation proportion - - - 2,842 2,842 OPEB contributions after measurement date - - - 2,157 2,157 OPEB change in assumptions - - - 3,141 3,141 OPEB difference between actual and
expected experience - - - 774 774 Change in OPEB allocation proportion - - - 724 724 Total deferred outflows of resources -$ -$ -$ 89,960$ 89,960$ Deferred Inflows of Resources:

Economic gain from the refunding of debt -$ -$ -$ 2,039$ 2,039$ Unavailable revenue and property taxes 112,403 215,784 328,187 (213,826) 114,361 CalPERS difference between actual
and expected investment returns - - - 331,163 331,163 CalPERS difference between actual and
expected experience - - - 7,044 7,044 Change in pension allocation proportion - - - 3,269 3,269 OPEB change in assumptions - - - 23,385 23,385 OPEB difference between actual and
expected experience - - - 3,439 3,439 Change in OPEB allocation proportion - - - 1,412 1,412 Total deferred inflows of resources 112,403$ 215,784$ 328,187$ 157,925$ 486,112$ City of Long Beach
Governmental Funds
Schedule of Deferred Outflows of Resources and Deferred Inflows of Resources For the Fiscal Year Ended September 30, 2021
(In Thousands)
109
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Total
Workers' General Internal
Civic General Fleet Compensation Liabilit y Employee Service Center Services Services Insurance Insurance Benefits Funds Deferred Outflows of Resources:

Economic loss from the refunding of debt -$ -$ 793 $ -$ - $ -$ 793$ Pension contributions after measurement date 84 3,011 1,292 769 467 751 6,374 Change in pension allocation proportion - 839 161 - - 459 1,459 OPEB contributions after measurement date - 82 44 13 9 15 163 OPEB change in assumptions - 119 63 19 14 22 237 OPEB difference between actual
and expected experience - 29 16 5 3 5 58 CalPERS difference between actual
and expected experience - - - - - 3 3 Change in OPEB allocation proportion - 80 20 56 108 - 264 Total deferred outflows of resources 84$ 4,160 $ 2,389 $ 862 $ 601 $ 1,255 $ 9,351$ Deferred Inflows of Resources:

CalPERS difference between actual and
expected investment returns 331$ 11,836 $ 5,073 $ 3,022 $ 1,832 $ 2,975 $ 25,069 $ CalPERS difference between actual
and expected experience 14 510 219 130 79 124 1,076 Change in pension allocation proportion 430 420 576 497 80 540 2,543 OPEB change in assumptions - 886 472 145 102 161 1,766 OPEB difference between actual
and expected experience - 130 70 21 15 24 260 Change in OPEB allocation proportion - 209 124 8 51 160 552 Total deferred inflows of resources 775$ 13,991 $ 6,534 $ 3,823 $ 2,159 $ 3,984 $ 31,266 $ Note: For the total for Government Activities, see page 25. (In Thousands)
City of Long Beach
Internal Service Funds
Schedule of Deferred Outflows of Resources and Deferred Inflows of Resources 110
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

NOTE 24 - TAX ABATEMENTS
For financial reporting purposes, a tax abatement is defined as a reduction in tax revenues that results from an agreement between one or more government and an individual or entity in which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and (b) the individual or entity promises to take a specific action after the ag reement has been entered into that contributes to economic development or otherwise benefits the governments or the citizens of those governments.

The City enters into economic development agreem ents designed to promote development within the City, spur economic improvement, stimulate commercial activity, generate additional sales tax and enhance the property tax base and economic vitality of the City. These programs/agreements abate or rebate sales taxes, Transient Occupancy Taxes (TOT) and property taxes.

Nonmajor Total
Gas Water Enterprise Enterprise
Utility Utility Tidelands Harbor Funds Funds
Deferred Outflows of Resources:

Issuance costs - Bond Insurance -$ -$ 68 $ -$ -$ 68 $ Economic loss from the refunding of debt - 511 4,435 - - 4,946 Pension contributions after measurement date 2,946 3,812 4,677 11,468 6,556 29,459 CalPERS difference between actual
and expected experience - - 337 - - 337 Change in pension allocation proportion 509 755 1,378 3,361 931 6,934 OPEB contributions after measurement date 94 97 135 233 150 709 OPEB change in assumptions 136 142 197 339 217 1,031 OPEB difference between actual
and expected experience 34 35 48 84 54 255 Change in OPEB allocation proportion 76 71 1,055 505 237 1,944 Derivative instrument
Interest rate swap 10,079 - - - - 10,079 Total deferred outflows of resources 13,874$ 5,423$ 12,330 $ 15,990$ 8,145$ 55,762 $ Deferred Inflows of Resources:

Economic gain from the refunding of debt -$ -$ -$ 3,657$ -$ 3,657$ CalPERS difference between actual
and expected investment returns 11,570 14,974 20,783 45,041 25,750 118,118 CalPERS difference between actual
and expected experience 499 646 490 1,942 1,110 4,687 Change in pension allocation proportion - 592 1,288 2 3,541 5,423 OPEB change in assumptions 1,015 1,055 1,466 2,524 1,622 7,682 OPEB difference between actual
and expected experience 149 156 215 372 238 1,130 Change in OPEB allocation proportion 157 181 69 104 457 968 Derivative instrument
Commodity swap 443,833 - - - - 443,833 Total deferred inflows of resources 457,223$ 17,604 $ 24,311$ 53,642$ 32,718$ 585,498 $ (In Thousands)
City of Long Beach
Enterprise Funds
Schedule of Deferred Outflows of Resources and Deferred Inflows of Resources 111
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

Recipients may be eligible to receive economic assistance based on the employment impact, economic impact or community impact of the project requesting assistance. Recipients receiving assistance generally commit to expanding operations, renewing facility leases, bringing targeted businesses to the City, building, or remodeling real property and relate d infrastructure, or demolishing and redeveloping outdated properties. Agreements generally contain recapture provisions which may require repayment or termination if recipients do not meet the required provisions of the economic incentives. The City currently employs three categories of economic development agreements.

Retail Sales Tax Incentive Program (RSTIP) & Location Agreement Program (LAP) The RSTIP was established by the City Council in March 1992, to encourage large-scale retail development, improve retail sales tax productivity, and stimulate private investment in the retail section on the City’s economy. Used as a business retention or attraction tool, the program allows either a developer or end user seeking to complete a commercial project, to request economic incentives from the City. The City undertakes an analysis, including dete rmining if the business has the ability to generate retail sales in excess of $5 million annually, and if the project has an economic need. When such criteria are met, the City may choose to participate in a sales tax sharing agreement. Generally, active agreements range between 50% to 75% of sales tax revenue generated by the business and received by the City, in excess of an established base-year amount. These ag reements would continue for the period of time necessary to offset construction or improvement co sts to a new or expanded project, not to exceed 15 years.

Based on the success of the Retail Sales Tax Program, the City also has a Location Agreement Program. The Location Agreement Program is designed to attract new businesses, create jobs and enhance business-to-business sales tax revenue to the City. To qualify for assistance, new businesses would be required to generate sales in excess of $50 million annually. The sales performance of these businesses would have to be verified by a business evaluation, which would include sales performance analysis. The program will return a negotiated portion of the sales taxes generated by it for an agreed upon period of time.

During the fiscal year, the City had eight ac tive agreements. Depending on available financial information, the sales tax abatement amounts were derived from payments made during the fiscal year, accrual estimates based on sales tax history, or actual sales tax abatements for the fiscal year. For the year ended September 30, 2021, sales tax abatements totaled $7.2 million.

Transient Occupancy Tax (TOT) Incentive Agreement
TOT is paid through the occupancy of a hotel or other guest room. The tax is collected by the hotel operator from each guest with room payment and subs equently remitted to the City. The City’s current TOT rate is 13%, and includes a 1% rate increase approved by voters through Measure B. The rate increase was effective July 2020 with revenues deposited to the General Fund and intended for the City’s arts organizations and the Long Beach Convention and Entertainment Center. A TOT incentive program is available for new hotels with desired location, design, operational characteristics, a minimum of 100 rooms, a projected minimum TOT generation of $500 thousand and an identified financial gap. The program will return a negotiated portion of TOT generated by the hotel for an agreed upon period of time.

There were no transient occupancy taxes abated in fiscal year 2021.

Mills Act Property Tax Incentive Program
The Mills Act is a State of California program en acted in 1972 that is administered and implemented by local governments. The act offers economic incentives to qualifying owners of historic or designated landmark sites upon agreement to rehabilitate, restore, and protect their property. 112
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2021

The purpose of the Mills Act Program is to enc ourage the designation, restoration, and protection of historic properties. Properties must be designated City of Long Beach historic properties. Participating property owners enter into a formal agreement with the City for a minimum 10-year term; contracts are automatically renewed at the end of their 10-year term and annually thereafter. The contract runs with the land, meaning that it will transfer from owner to owner if the property is sold or transferred.

Property owners agree to restore, maintain, and protect the property in accordance with specific historic preservation standards and conditions identified in the contract. Entering into a Mills Act contract results in a property tax reassessment by the County Assessor using the income-capitalization method, which may result in an approximately 30 to 50 percent reduction in property tax. Owners are guaranteed that the Mills Act cannot trigger a tax increase. A br each of contract by the property owner can result in cancellation of the contract and a penalty equal to 12.5 percent of the property’s fair market value.

For fiscal year 2021, the City had agreements for which re-assessments were completed by the County Assessor’s office with a total property tax valuation of $182.3 million, and an estimated tax abatement of $200 thousand.

NOTE 25 – SUBSEQUENT EVENTS
Measure M Litigation
In December 2021, an appellate court ruled against the City of Long Beach in a lawsuit challenging the legality of the City’s Measure M charter amendment. Measure M was approved by voters in 2018 and solidified voters’ desire to continue the long-standing practice, that had been in place for over 60 years, of transferring a portion of City utility revenues to the City’s General Fund in order to support services for Long Beach residents.

The City disagreed with the ruling and petitioned the California Supreme Court for review. On March 23, 2022, it was announced the California Supreme Court denied the City’s petition to review and therefore the appellate court decision will stand. As a result, the City’s General Fund is reporting a nonbudgetary transfer and liability of $30.8 million that represents the amount owed to the Water Utility Fund through September 30, 2021. The City will abide by the court’s decision and begin the payment process for the first $9.0 million to the Water Utility Fund within the next 30 days.

Transfer of the GDBR
On March 14, 2022, the ownership of the new GDBR was officially transferred to CalTrans as a component of the state highway system, with approval of the Harbor Board of Commissioners and concurrence by CalTrans. The asset transfer of the total GDBR Project is coordinated in a two-phase process that will result in a loss of the contributed asset to other agencies, and a reduction of the Harbor’s asset of approximately $1.6 billion. The first phase of the transfer consists of the new completed replacement bridge itself with an approximate valu e of $1.5 billion. The second phase encompasses all remaining capital costs, including but not limited to the demolition of the old bridge, anticipated to be completed with a final closed out in 2024.

REQUIRED

SUPPLEMENTARY

INFORMATION
PB 113
See accompanying Independent Auditors’ Report
City of Long Beach
Required Supplementary Information
For the Fiscal Year Ended September 30, 2021
(In Thousands)

2015 2016 2017 2018 2019 2020 2021
Total Pension Liability (TPL)
TPL - beginning 2,362,579$ 2,368,500$ 2,431,211$ 2,612,351$ 2,623,898$ 2,726,916$ 2,813,763$ Service cost 37,502 37,306 42,500 43,138 43,491 44,000 45,016 Interest in the TPL 171,128 175,727 177,096 178,030 185,085 191,098 196,483 Differences between actual and expected
experience (45,118) (29,800) (56,898) (28,799) 11,466 (4,185) (13,138) Changes in assumptions
2 (40,892) - 144,164 (49,554) - - - Benefit payments
3 (116,699) (120,522) (125,722) (131,268) (137,024) (144,066) (150,237) Net change in TPL 5,921 62,711 181,140 11,547 103,018 86,847 78,124 TPL - ending (a) 2,368,500$ 2,431,211$ 2,612,351$ 2,623,898$ 2,726,916$ 2,813,763$ 2,891,887$ Plan Fiduciary Net Position
Plan fiduciary net position - beginning 1,881,680$ 1,857,249$ 1,802,786$ 1,936,477$ 2,030,299$ 2,105,327$ 2,153,414$ Net Plan to Plan Resource Movement - - (39) (5) (5) - 7 Contribution - employer 35,136 39,877 45,864 53,278 62,484 71,565 78,158 Contribution - employees 17,652 17,959 17,793 18,339 18,876 19,350 19,885 Net investment income 41,570 9,355 198,457 162,226 132,140 104,205 478,175 Administrative expenses (2,090) (1,132) (2,662) (3,018) (1,449) (2,967) (2,151) Benefit payments
3 (116,699) (120,522) (125,722) (131,268) (137,023) (144,066) (150,237) Other miscellaneous expense - - - (5,730) 5 - - Net change in fiduciary net position (24,431) (54,463) 133,691 93,822 75,028 48,087 423,837 Plan fiduciary net position - ending (b) 1,857,249$ 1,802,786$ 1,936,477$ 2,030,299$ 2,105,327$ 2,153,414$ 2,577,251$ Net pension liability - ending (a)-(b) 511,251$ 628,425$ 675,874$ 593,599$ 621,589$ 660,349$ 314,636$ Fiduciary net position as a percentage of the TPL 78.41% 74.15% 74.13% 77.38% 77.21% 76.53% 89.12% Covered payroll 223,225$ 228,212$ 234,782$ 242,227$ 248,064$ 254,926$ 265,736$ NPL as percentage of covered payroll 229.03% 275.37% 287.87% 245.06% 250.58% 259.04% 118.40% Notes to Schedule:
3 Benefit payments include refunds of employee contributions. 1 Fiscal year 2015 was the first year of implementation. 2 Changes in assumptions: In 2019-2021, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate In 2017, the discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expenses) to 7.65 percent.

Schedule of Changes in the Net Pension Liability (NPL) and Related Ratios Miscellaneous Plan
(Calculated as of June 30 and reported as of September 30) Last 10 Years1
(unaudited)

114
See accompanying Independent Auditors’ Report
City of Long Beach
Required Supplementary Information
For the Fiscal Year Ended September 30, 2021
(In Thousands)

2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution2 35,136$ 39,877$ 45,864$ 53,278$ 62,484$ 71,565$ 78,158$ (35,136) (39,877) (45,864) (53,278) (62,484) (71,565) (78,158) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll 239,897$ 246,490$ 258,248$ 269,936$ 270,237$ 285,980$ 279,318$

14.65% 16.18% 17.76% 19.74% 23.12% 25.02% 27.98%
Notes to schedule:

Valuation Date: 6/30/2018
Actuarial Cost Method Entry age normal
Amortization Method For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method
Inflation 2.50%
Salary Increases Varies by entry age and service
Payroll Growth 2.75%
Investment Rate of Return
Retirement Age
Mortality
Notes
2 Actuarially Determined Calculation is based on a CalPERS projection of the Miscellaneous payroll. 3 Amount represents actual contributions as recorded by CalPERS. 1 Historical information is required only for years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021 were from the June 30, 2018 funding valuation report public agency valuations.

Contributions in relation to the actuarially determined contribution3 Contributions as a percentage of covered payroll
Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015.

7.00%, net of pension plan investment and administrative expenses, including inflation
Schedule of Contributions
Miscellaneous Plan
As of and for the year ended September 30
Last 10 Years1
(unaudited)

114 115
See accompanying Independent Auditors’ Report
City of Long Beach
Required Supplementary Information
For the Fiscal Year Ended September 30, 2021
(In Thousands)

2015 2016 2017 2018 2019 2020 2021
Total Pension Liability
TPL - beginning 2,209,454$ 2,222,223$ 2,286,528$ 2,458,914$ 2,510,763$ 2,630,341$ 2,723,971$ Service cost 34,835 34,636 38,622 40,757 42,335 43,862 45,592 Interest in the TPL 160,374 165,092 166,486 170,018 178,200 184,631 191,618 Differences between actual and expected experience (38,807) (27,528) (61,909) (102) 21,708 (5,180) 1,763 Changes in assumptions2 (39,710) - 139,900 (43,795) - - - Benefit payments3 (103,922) (107,895) (110,713) (115,029) (122,665) (129,683) (137,111) Net change in TPL 12,770 64,305 172,386 51,849 119,578 93,630 101,862 TPL - ending (a) 2,222,224$ 2,286,528$ 2,458,914$ 2,510,763$ 2,630,341$ 2,723,971$ 2,825,833$ Plan Fiduciary Net Position
Plan fiduciary net position - beginning 1,889,902$ 1,866,598$ 1,811,258$ 1,948,660$ 2,048,027$ 2,126,671$ 2,178,824$ Net Plan to Plan Resource Movement - - 39 (5) 4 - (7) Contribution - employer 29,815 32,845 39,371 46,437 55,248 64,654 71,008 Contribution - employees 11,737 11,733 12,802 14,047 14,287 15,089 16,780 Net investment income 41,167 9,115 198,577 162,720 133,226 105,091 485,277 Administrative expenses (2,101) (1,138) (2,674) (3,037) (1,461) (2,998) (2,177) Benefit payments3 (103,922) (107,895) (110,713) (115,029) (122,665) (129,683) (137,111) Other miscellaneous expense - - - (5,766) 5 - - Net change in fiduciary net position (23,304) (55,340) 137,402 99,367 78,644 52,153 433,770 Plan fiduciary net position - ending (b) 1,866,598$ 1,811,258$ 1,948,660$ 2,048,027$ 2,126,671$ 2,178,824$ 2,612,594$ Net pension liability - ending (a)-(b) 355,626$ 475,270$ 510,254$ 462,736$ 503,670$ 545,147$ 213,239$ Fiduciary net position as a percentage of the TPL 84.00% 79.21% 79.25% 81.57% 80.85% 79.99% 92.45% Covered payroll 127,265$ 127,789$ 126,530$ 136,458$ 141,252$ 148,487$ 156,245$ NPL as percentage of covered payroll 279.44% 371.92% 403.27% 339.10% 356.57% 367.14% 136.48% Notes to Schedule:

Schedule of Changes in the Net Pension Liability (NPL) and Related Ratios Safety Plan
Last 10 Years1
(unaudited)
1 Fiscal year 2015 was the first year of implementation. 3 Benefit payments include refunds of employee contributions 2 Changes in assumptions: In 2019-2021, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate In 2017, the discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expenses) to 7.65 percent. (Calculated as of June 30 and reported as of September 30)

116
See accompanying Independent Auditors’ Report
City of Long Beach
Required Supplementary Information
For the Fiscal Year Ended September 30, 2021
(In Thousands)

2016 2017 2018 2019 2020 2021
Total OPEB liability - beginning 42,493$ 45,122$ 49,940$ 51,502$ 23,248$ 9,655$ Service cost 2,077 2,145 2,818 2,675 2,167 1,718 Interest on total OPEB liability 1,655 1,754 1,622 1,878 917 265 Difference between expected
and actual experience - (8,920) - (1,874) - 1,211 Changes of assumptions - 11,093 (2,023) (29,859) (13,756) (539) Benefit payments (1,103) (1,254) (855) (1,074) (2,921) (3,525) Net change in total OPEB liability 2,629 4,818 1,562 (28,254) (13,593) (870) Total OPEB liability - ending 45,122$ 49,940$ 51,502$ 23,248$ 9,655$ 8,785$ Covered payroll 406,263$ 435,649$ 417,383$ 442,631$ 437,870$ 453,717$ Total OPEB liability as a percentage
of covered payroll 11.1% 11.5% 12.3% 5.3% 2.2% 1.9%
Notes to Schedule:
1 No assets are accumulated in a trust to pay related benefits. 2 Fiscal year 2016 was the first year of implementation.

Schedule of Changes in Total OPEB Liability and Related Ratios 1 As of September 30
Last 10 Years
2 (unaudited)

City of Long Beach
Required Supplementary Information
For the Fiscal Year Ended September 30, 2021
(In Thousands)

2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution2 29,815$ 32,845$ 39,371$ 46,437$ 55,248$ 64,654$ 71,008$ (29,815) (32,845) (39,371) (46,437) (55,248) (64,654) (71,008) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ Covered payroll 155,208$ 159,773$ 177,401$ 186,217$ 182,947$ 192,541$ 189,019$

19.21% 20.56% 22.19% 24.94% 30.20% 33.58% 37.57%
Notes to schedule:

Valuation Date: 6/30/2018
Actuarial Cost Method Entry age normal
Amortization Method For details, see June 30, 2018 Funding Valuation Report.

Contributions in relation to the actuarially determined contribution3 Contributions as a percentage of covered payroll
Schedule of Contributions
Safety Plan
As of and for the year ended September 30
Last 10 Years1
(unaudited)
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021 were from the June 30, 2018 funding valuation report public agency valuations. 1Historical information is required only for years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation.

Fair Value of Assets. For details, see June 30, 2018 Funding Valuation Report.

7.00%, net of pension plan investment and administrative expenses, including inflation
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post- retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

116 117
See accompanying Independent Auditors’ Report
City of Long Beach
Required Supplementary Information
For the Fiscal Year Ended September 30, 2021
(In Thousands)

Schedule of Changes in Total OPEB Liability and Related Ratios 1 As of September 30
Last 10 Years
2 (unaudited)

118

Intentionally Left Blank

ADDITIONAL

FINANCIAL

SECTION
119 119
See accompanying Independent Auditors’ Report
Special Deb t Capital
Revenue Service Projects
Funds Funds Funds Total
ASSETS
Pooled Cash and Cash Equivalents 73,614$ 16,648$ 10,278$ 100,540 $ Non-Pooled Cash and Cash Equivalents 63 19,247 66 19,376 Accounts Receivable 3,454 - 837 4,291 Due from Other Governments 84,945 - - 84,945 Due from Other Funds 5,748 - - 5,748 Allowance for Receivables (5,812) - - (5,812) Other Assets 106 - - 106 Advances to Other Funds 3,809 - - 3,809 Land Held for Resale 5,874 - - 5,874 Other Noncurrent Receivables 215,166 - 5,826 220,992 Total Assets 386,967$ 35,895 $ 17,007$ 439,869 $

LIABILITIES
Accounts Payable 7,198$ -$ 256$ 7,454 $ Accrued Wages and Benefits Payable 1,521 - - 1,521 Due to Other Funds 23,824 - - 23,824 Unearned Revenues 46,939 - 31 46,970 Deposits and Collections Held in Trust 408 1,536 100 2,044 Advances from Other Funds 3,809 1,600 - 5,409 Total Liabilities 83,699 3,136 387 87,222

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 209,963 - 5,821 215,784

FUND BALANCES
Nonspendable 927 - - 927 Restricted 90,591 32,759 10,799 134,149
Committed 1,414 - - 1,414 Assigned 373 - - 373 Total Fund Balance 93,305 32,759 10,799 136,863 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 386,967$ 35,895 $ 17,007$ 439,869 $ Receivables:

City of Long Beach
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2021
(In Thousands)
120
See accompanying Independent Auditors’ Report
Special Debt Ca pital
Revenue Service Projects
Funds Funds Funds Total
Revenues:

Taxes:

Property 5,564 $ 19,708$ 512$ 25,784$ Sales 2,438 - - 2,438 Other Taxes 9,694 - - 9,694 Licenses and Permits 10,460 - - 10,460 Use of Money and Property 2,634 354 329 3,317 From Other Agencies 230,603 - - 230,603 Charges for Services 2,030 - - 2,030 Other 4,010 - 1,155 5,165 Total Revenues 267,433 20,062 1,996 289,491 Expenditures:

Current:

General Government 6,951 - - 6,951 Public Safety 14,966 - - 14,966 Public Health 74,866 - - 74,866 Community and Cultural 59,079 10 1,110 60,199 Public Works 11 - - 11 Total Current Expenditures 155,873 10 1,110 156,993 Capital Improvements 1,744 - - 1,744 Debt Service:

Principal - 20,723 - 20,723 Interest - 11,928 - 11,928 Debt Administration Fees - 17 - 17 Total Expenditures 157,617 32,678 1,110 191,405 Excess of Revenues over
(under) Expenditures 109,816 (12,616) 886 98,086 Other Financing Sources (Uses):

Proceeds from Sale of Capital Asset - 826 826 Debt Issuance - 19,765 - 19,765 Premium on Debt Issuance - 4,170 - 4,170 Payment to Refunded Bond Escrow Agent - (26,300) - (26,300) Cost of Issuance - (410) - (410) Transfers In 8,581 9,498 - 18,079 Transfers Out (96,247) (3,645) (3,145) (103,037) Total Other Financing Sources (Uses) (87,666) 3,078 (2,319) (86,907) Net Change in Fund Balances 22,150 (9,538) (1,433) 11,179 Fund Balances - October 1 71,155 42,297 12,232 125,684 Fund Balances - September 30 93,305$ 32,759$ 10,799$ 136,863$ City of Long Beach
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Fiscal Year Ended September 30, 2021
(In Thousands)
121120

NONMAJOR SPECIAL REVENUE FUNDS

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

The General Grants Fund was established to separately account for Federal, State, and other agency grants related to general City of Long Beach (City) operations.

The Police and Fire Public Safety Oil Production Act Fund accounts for the special tax assessed to oil producers on a per barrel basis and the associated police and fire expenditures that the revenue supports.

The Community Development Grants Fund accounts for U. S. Departments of Housing and Urban Development (HUD), Labor, Education, and others for economic and community development programs. The fund includes activities for neighborhood improvement programs that target low and moderate-income areas of the city, workforce development strategies, business assistance efforts, and support for youth development.

The Health Fund was established to separately account for Federal, State, and other revenues related to health care programs that the City operates in lieu of Los Angeles County (County).

The Belmont Shore Parking Meter Revenue Fund was established by City Ordinance C-6219 to account for parking revenues in the Belmont Shore area of the City.

The Housing Development Fund is used to account for amounts designated for the development of low-and-moderate-income housing. The operations of the Company and the Housing Successor Agency are accounted for in the Housing Development Fund.

The Development Impact Fund was established to account for the receipt and expenditure of Development Impact Fees.

The Other Special Revenue Fund consists of the Certified Unified Program Agency Fund , a fund established by the City to account for services relating to hazardous waste material, the Special Advertising and Promotion Fund, a fund required by the City's Municipal Code Section 3.64.100 to account for a portion of the transient occupancy tax revenue, and the Business Assistance Fund which is used to account for monies used to fund commercial rehabilitation loans and rebates, business outreach, and commercial and retail serv ices, including business attraction, retention, and expansion.
122
See accompanying Independent Auditors’ Report
Police and Fire
Public Safety Community
General Oil Production Developmen t
Grants Ac t Grants Health
ASSETS
Pooled Cash and Cash Equivalents 384$ 156$ 18,718$ 213$ Non-Pooled Cash and Cash Equivalents - - 33 1 Receivables:

Accounts Receivable 94 267 - 1,277 Due from Other Governments 26,825 - 13,515 44,369 Due from Other Funds 405 - 98 - Allowance for Receivables (2) - (5,202) (414) Other Assets-Current - - 106 - Advances to Other Funds - - 3,809 - Land Held for Resale - - 821 - Other Noncurrent Receivables (net) - - 68,874 - Total Assets 27,706$ 423$ 100,772$ 45,446$

LIABILITIES
Accounts Payable 575$ -$ 1,468$ 4,908$ Accrued Wages 77 - 232 1,067 Due to Other Funds 11,035 - 261 12,365 Unearned Revenues 9,716 247 22,733 14,134 Deposits and Collections Held in Trust - - - 319 Advances from Other Funds - - - - Total Liabilities 21,403 247 24,694 32,793

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - - 63,671 -

FUND BALANCES (DEFICIT)
Nonspendable - - 927 - Restricted 5,930 176 11,480 12,653 Committed - - - - Assigned 373 - - - Total Fund Balances 6,303$ 176$ 12,407$ 12,653$ Total Liabilities, Deferred Inflows of
Resources and Fund Balances 27,706$ 423$ 100,772$ 45,446$ Special Revenue
City of Long Beach
Nonmajor Special Revenue Funds
Combining Balance Sheet
September 30, 2021
(In Thousands)
122 123
See accompanying Independent Auditors’ Report
Belmont
Shore Other Total
Parking Development Special Special
Meter Housing Impact Revenue Revenue
Revenue Development Fees Funds Funds
ASSETS
134$ 29,949$ 18,239$ 5,821$ 73,614$ Pooled Cash and Cash Equivalents - 29 - - 63 Non-Pooled Cash and Cash Equivalents Receivables:
- 3 - 1,813 3,454 Accounts Receivable - - - 236 84,945 Due from Other Governments - - - 5,245 5,748 Due from Other Funds - - - (194) (5,812) Allowance for Receivables - - - - 106 Other Assets-Current - - - - 3,809 Advances to Other Funds - 5,053 - - 5,874 Land Held for Resale - 143,876 - 2,416 215,166 Other Noncurrent Receivables 134$ 178,910$ 18,239$ 15,337$ 386,967$ Total Assets

LIABILITIES
27$ 28$ 25$ 167$ 7,198$ Accounts Payable - 18 - 127 1,521 Accrued Wages - 21 - 142 23,824 Due to Other Funds - 25 - 84 46,939 Unearned Revenues 10 - - 79 408 Deposits and Collections Held in Trust - 3,809 - - 3,809 Advances from Other Funds 37 3,901 25 599 83,699 Total Liabilities

DEFERRED INFLOWS OF RESOURCES
- 143,876 - 2,416 209,963 Deferred Inflows of Resources

FUND BALANCES (DEFICIT)
- - - - 927 Nonspendable 97 30,919 18,214 11,122 90,591 Restricted - 214 - 1,200 1,414 Committed - - - - 373 Assigned 97$ 31,133$ 18,214$ 12,322$ 93,305$ Total Fund Balances Total Liabilities, Deferred Inflows of
134$ 178,910$ 18,239$ 15,337$ 386,967$ Resources and Fund Balances Special Revenue
124
See accompanying Independent Auditors’ Report
Police and Fire
Public Safety Community
General Oil Production Development
Grants Ac t Grants Health
Revenues:

Taxes:

Property - $ -$ -$ 5,564$ Sales - - - 2,438 Other Taxes - 2,975 - - Licenses and Permits - - - 3,293 Use of Money and Property 137 4 843 - From Other Agencies 98,005 - 47,160 84,675 Charges for Services 520 - - 1,483 Other 466 - 1,762 8 Total Revenues 99,128 2,979 49,765 97,461 Expenditures:

Current:

General Government 6,160 - 4 - Public Safety 11,527 3,005 434 - Public Health 248 - - 72,507 Community and Cultural 1,574 - 44,500 - Public Works 11 - - - Total Current Expenditures 19,520 3,005 44,938 72,507 Capital Improvements 1,298 - - - Total Expenditures 20,818 3,005 44,938 72,507 Excess of Revenues over
(under) Expenditures 78,310 (26) 4,827 24,954 Other Financing Sources (Uses)
Transfers In 787 - 531 1,582 Transfers Out (73,900) - (6,140) (15,699) Total Other Financing Sources (Uses) (73,113) - (5,609) (14,117) Net Change in Fund Balances 5,197 (26) (782) 10,837 Fund Balances - October 1 1,106 202 13,189 1,816 Fund Balances - September 30 6,303$ 176$ 12,407$ 12,653$ Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of Long Beach
Nonmajor Special Revenue Funds
For the Fiscal Year Ended September 30, 2021
(In Thousands)
124 125
See accompanying Independent Auditors’ Report
Belmont Shore Other Total
Parking Development Special Special
Meter Housing Impact Revenue Revenue
Revenue Development Fees Funds Funds
Revenues:

Taxes:
-$ -$ -$ -$ 5,564$ Property - - - - 2,438 Sales - - - 6,719 9,694 Other Taxes - 161 4,087 2,919 10,460 Licenses and Permits 574 1,076 - - 2,634 Use of Money and Property - 453 - 310 230,603 From Other Agencies - - - 27 2,030 Charges for Services - 1,463 - 311 4,010 Other 574 3,153 4,087 10,286 267,433 Total Revenues Expenditures:

Current:
8 225 - 554 6,951 General Government - - - - 14,966 Public Safety - - - 2,111 74,866 Public Health 649 2,072 - 10,284 59,079 Community and Cultural - - - - 11 Public Works 657 2,297 - 12,949 155,873 Total Current Expenditures - - 446 - 1,744 Capital Improvements 657 2,297 446 12,949 157,617 Total Expenditures Excess of Revenues Over
(83) 856 3,641 (2,663) 109,816 (Under) Expenditures Other Financing Sources (Uses)
- 2 - 5,679 8,581 Transfers In - (188) (312) (8) (96,247) Transfers Out - (186) (312) 5,671 (87,666) Total Other Financing Sources (Uses) (83) 670 3,329 3,008 22,150 Net Change in Fund Balances 180 30,463 14,885 9,314 71,155 Fund Balances - October 1 97$ 31,133$ 18,214$ 12,322$ 93,305$ Fund Balances - September 30 Special Revenue
Police and Fire
Public Safety Community
General Oil Production Development
Grants Ac t Grants Health
Revenues:

Taxes:

Current:

General Government 6,160 - 4 - Public Safety 11,527 3,005 434 - Public Health 248 - - 72,507 Community and Cultural 1,574 - 44,500 - Public Works 11 - - - Total Current Expenditures 19,520 3,005 44,938 72,507 Capital Improvements 1,298 - - - Total Expenditures 20,818 3,005 44,938 72,507 Excess of Revenues over
(under) Expenditures 78,310 (26) 4,827 24,954 Other Financing Sources (Uses)
Transfers In 787 - 531 1,582 Transfers Out (73,900) - (6,140) (15,699) Total Other Financing Sources (Uses) (73,113) - (5,609) (14,117) Net Change in Fund Balances 5,197 (26) (782) 10,837 Fund Balances - October 1 1,106 202 13,189 1,816 Fund Balances - September 30 6,303$ 176$ 12,407$ 12,653$ Special Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances City of Long Beach
Nonmajor Special Revenue Funds
For the Fiscal Year Ended September 30, 2021
(In Thousands)
126
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property -$ -$ 137$ 137$ From Other Agencies 6,859 152,657 98,005 (54,652) Charges for Services 191 366 520 154 Other Revenues 345 1,369 466 (903) Transfers In - - 787 787 Total Revenues 7,395 154,392 99,915 (54,477) Expenditures:

General Government - 1,267 6,160 (4,893) Public Safety 5,239 12,276 11,935 341 Public Health - 395 256 139 Community and Cultural - - 1,576 (1,576) Public Works 1,337 2,983 11 2,972 Capital Improvements 8,069 19,313 1,912 17,401 Transfers Out - - 73,900 (73,900) Total Expenditures 14,645 36,234 95,750 (59,516) Net Change in Budgetary Fund Balance (7,250)$ 118,158 $ 4,165$ (113,993)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 4,165$ Add: Encumbrances 1,032
Fund Balance, October 1, GAAP Basis 1,106
Fund Balance, September 30, GAAP Basis 6,303$
(In Thousands)
General Grants
Budgeted Amounts
126 127
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Other Taxes 3,318$ 3,318$ 2,975$ (343)$ Use of Money and Property - - 4 4 Total Revenues 3,318 3,318 2,979 (339) Expenditures:

Public Safety 3,318 3,318 3,005 313 Total Expenditures 3,318 3,318 3,005 313 Net Change in Budgetary Fund Balance -$ -$ (26)$ (26)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (26)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (26)
Fund Balance, October 1, GAAP Basis 202
Fund Balance, September 30, GAAP Basis 176$
Budgeted Amounts
Police and Fire Public Safety Oil Production Tax
128
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 323$ 221$ 843$ 622$ From Other Agencies 16,468 50,457 47,160 (3,297) Other Revenues - 3,829 1,762 (2,067) Transfers In - - 531 531 Total Revenues 16,791 54,507 50,296 (4,211) Expenditures:

General Government 206 154 4 150 Public Safety 1,524 1,524 434 1,090 Community and Cultural (3,482) 80,738 52,285 28,453 Transfers Out 1,164 1,158 6,140 (4,982) Total Expenditures (588) 83,574 58,863 24,711 Net Change in Budgetary Fund Balance 17,379$ (29,067)$ (8,567)$ 20,500$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (8,567)$ Add: Encumbrances 7,785
Change in Fund Balance - September 30, GAAP Basis (782) Fund Balance, October 1, GAAP Basis 13,189
Fund Balance, September 30, GAAP Basis 12,407$
Budgeted Amounts
Community Development Grants
128 129
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 5,800$ 5,800$ 5,564$ (236)$ Sales Taxes 2,400 2,400 2,438 38 Licenses and Permits 3,923 3,923 3,293 (630) Use of Money and Property 37 37 - (37) From Other Agencies 40,049 100,994 84,675 (16,319) Charges for Services 2,871 3,364 1,483 (1,881) Other Revenues 4,576 4,576 8 (4,568) Transfers In 325 325 1,582 1,257 Total Revenues 59,981 121,419 99,043 (22,376) Expenditures:

Public Health 55,868 117,048 75,813 41,235 Capital Improvements 2,832 17,104 - 17,104 Transfers Out - - 15,699 (15,699) Total Expenditures 58,700 134,152 91,512 42,640 Net Change in Budgetary Fund Balance 1,281$ (12,733) $ 7,531$ 20,264$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 7,531$ Add: Encumbrances 3,306
Change in Fund Balance - September 30, GAAP Basis 10,837 Fund Balance, October 1, GAAP Basis 1,816
Fund Balance, September 30, GAAP Basis 12,653$
Health
Budgeted Amounts
130
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 765$ 798$ 1,372$ 574$ Total Revenues 765 798 1,372 574 Expenditures:

General Government - - 8 (8) Community and Cultural 765 798 653 145 Total Expenditures 765 798 661 137 Net Change in Budgetary Fund Balance -$ -$ 711$ 711$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 711$ Add: Encumbrances 4
Less: Change in Mark-to-Market and Other Adjustments (798) Change in Fund Balance - September 30, GAAP Basis (83)
Fund Balance, October 1, GAAP Basis 180
Fund Balance, September 30, GAAP Basis 97$
Belmont Shore Parking Meter Revenues
Budgeted Amounts
130 131
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Licenses and Permits 341$ 341$ 161$ (180)$ Use of Money and Property 385 385 1,076 691 From Other Agencies - - 453 453 Other Revenues 562 562 1,463 901 Transfers In 2,911 2,911 2 (2,909) Total Revenues 4,199 4,199 3,155 (1,044) Expenditures:

General Government 323 285 272 13 Community and Cultural 3,406 3,380 2,083 1,297 Transfers Out - - 188 (188) Total Expenditures 3,729 3,665 2,543 1,122 Net Change in Budgetary Fund Balance 470$ 534$ 612$ 78$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 612$ Add: Encumbrances 58
Change in Fund Balance - September 30, GAAP Basis 670
Fund Balance, October 1, GAAP Basis 30,463
Fund Balance, September 30, GAAP Basis 31,133$
Housing Development
Budgeted Amounts
132
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Licenses and Permits 1,515$ 2,340$ 4,087$ 1,747$ Total Revenues 1,515 2,340 4,087 1,747 Expenditures:

Capital Improvements 7 832 448 384 Transfers Out 1,743 1,743 312 1,431 Total Expenditures 1,750 2,575 760 1,815 Net Change in Budgetary Fund Balance (235)$ (235)$ 3,327$ 3,562$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 3,327$ Add: Encumbrances 2
Change in Fund Balance - September 30, GAAP Basis 3,329 Fund Balance, October 1, GAAP Basis 14,885
Fund Balance, September 30, GAAP Basis 18,214$
Development Impact Fees
Budgeted Amounts
132 133
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Other Taxes 6,707$ 6,707$ 6,719$ 12$ Licenses and Permits 2,998 2,998 2,919 (79) Use of Money and Property 36 36 - (36) From Other Agencies - 2,699 310 (2,389) Charges for Services - - 27 27 Other Revenues 768 768 311 (457) Transfers In 156 156 5,679 5,523 Total Revenues 10,665 13,364 15,965 2,601 Expenditures:

General Government 529 529 554 (25) Public Health 2,356 2,330 2,111 219 Community and Cultural 11,249 14,549 10,322 4,227 Transfers Out - - 8 (8) Total Expenditures 14,134 17,408 12,995 4,413 Net Change in Budgetary Fund Balance (3,469)$ (4,044)$ 2,970$ 7,014$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 2,970$ Add: Encumbrances 38
Change in Fund Balance - September 30, GAAP Basis 3,008 Fund Balance, October 1, GAAP Basis 9,314
Fund Balance, September 30, GAAP Basis 12,322$
Budgeted Amounts
Other Special Revenue Funds
134

Intentionally Left Blank

135

NONMAJOR DEBT SERVICE FUND

Governmental fund type used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest and to account for financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

The General Debt Service Fund was established to account for financial resources that are restricted, committed, or assigned to expenditure for principal and interest of City long-term debt.

The Successor Agency Debt Service Fund was established to account for financial resources that are restricted to expenditure for principal and interest of Successor Agency long-term debt.

136
See accompanying Independent Auditors’ Report
Successor Total
General Agenc y Debt
Debt Debt Service
Service Service Funds
ASSETS
Pooled Cash and Cash Equivalents 16,648$ -$ 16,648$ Non-Pooled Cash and Cash Equivalents 2,285 16,962 19,247 Total Assets 18,933$ 16,962$ 35,895$

LIABILITIES
Deposits and Collections Held in Trust 1,536$ -$ 1,536 $ Advances from Other Funds 1,600 - 1,600 Total Liabilities 3,136 - 3,136

FUND BALANCES
Restricted 15,797 16,962 32,759
Total Fund Balance 15,797 16,962 32,759
Total Liabilities and Fund Balances 18,933$ 16,962$ 35,895$ (In Thousands)
City of Long Beach
Nonmajor Debt Service Funds
Combining Balance Sheet
September 30, 2021
136 137
See accompanying Independent Auditors’ Report
Successor Total
General Agenc y Debt
Debt Debt Service
Service Service Funds
ASSETS
Pooled Cash and Cash Equivalents 16,648$ -$ 16,648$ Non-Pooled Cash and Cash Equivalents 2,285 16,962 19,247 Total Assets 18,933$ 16,962$ 35,895$

LIABILITIES
Deposits and Collections Held in Trust 1,536$ -$ 1,536 $ Advances from Other Funds 1,600 - 1,600 Total Liabilities 3,136 - 3,136

Taxes:

Property - $ 19,708$ 19,708$ Use of Money and Property 352 2 354 Total Revenues 352 19,710 20,062 Expenditures:

Current:

Community and Cultural - 10 10 Total Current Expenditures - 10 10 Debt Service:

Principal 5,328 15,395 20,723
Interest 2,753 9,175 11,928
Debt Administration Fees 3 14 17 Total Expenditures 8,084 24,594 32,678 Excess of Revenues over
(under) Expenditures (7,732) (4,884) (12,616) Other Financing Sources (Uses):

Debt Issuance - 19,765 19,765 Premium on Debt Issuance - 4,170 4,170 Payment to Refunded Bond Escrow Agent - (26,300) (26,300) Cost of Issuance - (410) (410) Transfers In 6,381 3,117 9,498 Transfers Out (3,645) - (3,645) Total Other Financing Sources 2,736 342 3,078 Net Change in Fund Balances (4,996) (4,542) (9,538) Fund Balances - October 1 20,793 21,504 42,297 Fund Balances - September 30 15,797$ 16,962$ 32,759$ (In Thousands)
City of Long Beach
Nonmajor Debt Service Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended September 30, 2021
138
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Debt Service Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
Variance
with Final
Actual Actual on Budget -
On GAAP Budgetary Positive
Original Final Basis Basis (Negative)
Revenues:

Use of Money and Property 400$ 400$ 352$ 352$ (48)$ Charges for Services - - - - - Transfers In 6,501 5,772 6,381 6,381 609 Total Revenues 6,901 6,172 6,733 6,733 561 Expenditures:

Debt Service 8,159 8,084 8,084 8,084 - Transfers Out 3,645 3,645 (3,645) 3,645 - Total Expenditures 11,804 11,729 4,439 11,729 - Net Change in Budgetary Fund Balance (4,903)$ (5,557)$ 2,294$ (4,996)$ 561$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (4,996)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (4,996) Fund Balance, October 1, GAAP Basis 20,793
Fund Balance, September 30, GAAP Basis 15,797$
Budgeted Amounts
(In Thousands)
General Debt Service Fund
138 139
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Debt Service Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Variance
with Final
Actual Actual on Budget -
On GAAP Budgetary Positive
Original Final Basis Basis (Negative)
Revenues:

Property Taxes 30,162$ 30,162$ 19,708 19,708$ (10,454)$ Use of Money and Property - 2,850 2 2 (2,848) Debt Issuance - 19,765 19,765 19,765 - Premium on Issuance of Debt - 4,170 4,170 4,170 - Transfers In - - 3,117 3,117 3,117 Total Revenues 30,162 56,947 46,762 46,762 (10,185) Expenditures:

Community and Cultural - - 10 10 (10) Debt Service 26,369 27,546 24,584 24,584 2,962 Payment to Refunded Bond Escrow Agent - 26,300 26,300 26,300 - Cost of Issuance - 485 410 410 75 Total Expenditures 26,369 54,331 51,304 51,304 3,027 Net Change in Budgetary Fund Balance 3,793$ 2,616$ (4,542)$ (4,542)$ (7,158)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (4,542)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (4,542) Fund Balance, October 1, GAAP Basis 21,504
Fund Balance, September 30, GAAP Basis 16,962$
Successor Agency Debt Service Fund
Budgeted Amounts
140

Intentionally Left Blank

141

NONMAJOR CAPITAL PROJECTS FUND

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

The Special Assessment Capital Projects Fund was established to account for the acquisition, construction, and improvement of capital facilities financed through special assessments.

The Successor Agency Capital Projects Fund was established to account for the wind-down of Redevelopment Agency operations. This includes the completion of authorized projects and the disposition of properties owned by the former Re development Agency. The activities of this fund are primarily financed through remaining bond proceeds and Redevelopment Property Tax Trust Fund allocations provided through the County for this purpose.

The Successor Agency Capital Projects Fund was established to account for the winding down of the affairs of the redevelopment agency including the completion of Agency projects and the disposal of the Agency’s assets.

142
See accompanying Independent Auditors’ Report
Special Successor Total
Assessment Agency Capital
Capital Capital Projects
Projects Pro jects Funds
ASSETS
Pooled Cash and Cash Equivalents 1,776$ 8,502$ 10,278$ Non-Pooled Cash and Cash Equivalents 33 33 66 Accounts Receivable - 837 837 Other Noncurrent Receivables - 5,826 5,826 Total Assets 1,809$ 15,198$ 17,007$

LIABILITIES
Accounts Payable -$ 256$ 256$
Unearned Revenues - 31 31 Deposits and Collections Held in Trust - 100 100 Total Liabilities - 387 387

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - 5,821 5,821

FUND BALANCES
Restricted 1,809 8,990 10,799
Total Fund Balance 1,809 8,990 10,799 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 1,809$ 15,198$ 17,007$ Receivables:

City of Long Beach
Nonmajor Capital Project Funds
Combining Balance Sheet
September 30, 2021
(In Thousands)
142 143
See accompanying Independent Auditors’ Report
Special Successor Total
Assessment Agency Capital
Capital Capital Projects
Projects Pro jects Funds
ASSETS
Pooled Cash and Cash Equivalents 1,776$ 8,502$ 10,278$ Non-Pooled Cash and Cash Equivalents 33 33 66 Accounts Receivable - 837 837 Other Noncurrent Receivables - 5,826 5,826 Total Assets 1,809$ 15,198$ 17,007$

LIABILITIES
Accounts Payable -$ 256$ 256$
Unearned Revenues - 31 31 Deposits and Collections Held in Trust - 100 100 Total Liabilities - 387 387

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - 5,821 5,821

FUND BALANCES
Restricted 1,809 8,990 10,799
Total Fund Balance 1,809 8,990 10,799 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 1,809$ 15,198$ 17,007$ Receivables:

City of Long Beach
Nonmajor Capital Project Funds
Combining Balance Sheet
September 30, 2021
(In Thousands)
Special Successor Total
Assessment Agency Capital
Capital Capital Projects
Projects Projects Funds
Revenues:

Taxes:

Property - $ 512$ 512$
Use of Money and Property - 329 329 Other - 1,155 1,155
Total Revenues - 1,996 1,996
Expenditures:

Current:

Community and Cultural - 1,110 1,110 Total Current Expenditures - 1,110 1,110 Excess of Revenues Over
(under) Expenditures - 886 886 Other Financing Sources (Uses):

Proceeds from Sale of Capital Asset - 826 826 Transfers Out (28) (3,117) (3,145)
Total Other Financing Sources (Uses) (28) (2,291) (2,319) Net Change in Fund Balances (28) (1,405) (1,433) Fund Balances - October 1 1,837 10,395 12,232 Fund Balances - September 30 1,809$ 8,990$ 10,799 $ (In Thousands)
City of Long Beach
Nonmajor Capital Project Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended September 30, 2021
144
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Capital Projects Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 15$ 15$ -$ (15)$ Total Revenues 15 15 - (15) Expenditures:

Transfers Out - - 28 28 Total Expenditures - - 28 28 Net Change in Budgetary Fund Balance 15 15 (28) (43)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (28)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (28)
Fund Balance, October 1, GAAP Basis 1,837
Fund Balance, September 30, GAAP Basis 1,809$
(In Thousands)
Special Assessment Capital Projects Fund
Budgeted Amounts
144 145
See accompanying Independent Auditors’ Report
City of Long Beach
Nonmajor Capital Projects Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 15$ 15$ -$ (15)$ Total Revenues 15 15 - (15) Expenditures:

Transfers Out - - 28 28 Total Expenditures - - 28 28 Net Change in Budgetary Fund Balance 15 15 (28) (43)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (28)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (28)
Fund Balance, October 1, GAAP Basis 1,837
Fund Balance, September 30, GAAP Basis 1,809$
(In Thousands)
Special Assessment Capital Projects Fund
Budgeted Amounts
City of Long Beach
Nonmajor Capital Projects Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 3,000$ 3,000$ 512$ (2,488)$ Licenses and Permits 15 15 - (15) Use of Money and Property 797 797 329 (468) Other - Proceeds from Sale of Capital Asset - - 826 826 Other Revenues 408 408 1,155 747 Total Revenues 4,220 4,220 2,822 (1,398) Expenditures:

General Government 2 - - - Community and Cultural 4,220 4,187 1,110 3,077 Transfers Out - - 3,117 (3,117) Total Expenditures 4,222 4,187 4,227 (40) Net Change in Budgetary Fund Balance (2) 33 (1,405) (1,438)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (1,405)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (1,405) Fund Balance, October 1, GAAP Basis 10,395
Fund Balance, September 30, GAAP Basis 8,990$
(In Thousands)
Budgeted Amounts
Succesor Agency Capital Projects Fund
146

Intentionally Left Blank

147

NONMAJOR ENTERPRISE FUNDS

Enterprise Funds are used to account for City operations that are financed and operated in a manner similar to private business enterprises. The intent of the City in using this type of fund is to determine that the costs (expenses, including depreciation) of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.

The Tideland Oil Revenue Fund is used to account for the proceeds from oil operations within the City’s tidelands area.

The Sewer Utility Fund is used to account for the maintenance and replacement of the City's sewer pipelines and sewage facilities.

The Airport Fund is used to account for the opera tions, maintenance and facility improvements of the Airport.

The Solid Waste Management Fund is used to account for the City’s refuse collection, recycling, and resource recovery operations. The SERRF Authority Function is combined with the City’s Solid Waste Management Function for the purpose of financial statement presentation.

The Towing Fund is used to account for the City's towing services, which are used primarily by the Police and Public Works Departments to remove vehicles that have been abandoned or parked illegally on the City's streets.

The Subsidence Fund is used to account for the accumulation of resources to minimize and remedy future land sinkage due to oil operations in the tidelands area.

The Development Services Fund was established to segregate long-range planning and property use and development services and give visibility of the City’s planning, building, and inspection fees and the associated cost the City incurs to provide these services.

148
See accompanying Independent Auditors’ Report
Total
Tideland Nonmajor
Oil Solid Waste Development Proprietary
Revenue Sewe r Airport Management Towing Subsidence Services Fund s ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 51,905$ 12,565 $ 50,384 $ 23,382$ 1,467 $ 191,150 $ 36,685 $ 367,538$ Non-Pooled Cash and Cash Equivalents - - 6,977 3 2 - - 6,982 Receivables:

Interest Receivable - - 31 - - 1 - 32 Accounts Receivable 18,745 1,304 3,200 8,538 213 - - 32,000 Due from Other Governments - - 2,935 172 - - 589 3,696 Due from Other Funds 1,478 - 703 107 37 500 - 2,825 Allowance for Receivables - (156) (138) (1,975) (205) - (1,638) (4,112) Inventory - 185 - - - - - 185 Other Assets - Current 10 - - - - - - 10 Total Current Assets 72,138 13,898 64,092 30,227 1,514 191,651 35,636 409,156 Noncurrent Assets:

Restricted Noncurrent Assets:

Non-Pooled Investments - - 7,449 - - - - 7,449 Noncurrent Receivables
Advances to Other Funds - - - - - 114 - 114 Capital Assets:

Land and Other Capital Assets Not Being Depreciated - 8,151 64,014 7,003 - - - 79,168 Capital Assets, Net of Accumulated Depreciation 9,083 76,792 239,540 6,842 - - 14 332,271 Total Noncurrent Assets 9,083 84,943 311,003 13,845 - 114 14 419,002 Total Assets 81,221 98,841 375,095 44,072 1,514 191,765 35,650 828,158

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 566 1,088 1,596 2,281 575 - 2,039 8,145

LIABILITIES S
Current Liabilities Payable from Current Assets
Accounts Payable 14,356 1,126 5,216 4,327 77 - 1,276 26,378 Accrued Wages 95 156 316 365 92 - 358 1,382 Accrued Interest Payable - 141 2,125 - - - - 2,266 Due to Other Funds 106 191 345 442 96 - 1,523 2,703 Unearned Revenues - 120 1,194 - - 614 3,947 5,875 Collections Held in Trust - - - 762 - - 1 763 Customers Deposits - - 247 - - - 588 835 Advances from Developers - 194 - - - - 10,811 11,005 Due to State of California 5,825 - - - - - 5,825 281 459 1,061 1,008 217 - 968 3,994 Bonds Payable Due within One Year - 390 3,310 - - - - 3,700 Total Current Liabilities 20,663 2,777 13,814 6,904 482 614 19,472 64,726 Noncurrent Liabilities:

Unearned Revenues - - 5,049 - - - - 5,049 Accrued Oil Field Abandonment Costs 110,300 - - - - - - 110,300 501 971 1,616 1,950 412 - 1,643 7,093 Bonds Payable - 8,644 92,493 - - - - 101,137 Total OPEB Liability 32 58 98 118 25 - 103 434 Net Pension Liability 2,699 4,097 7,405 8,612 1,920 - 9,669 34,402 Total Noncurrent Liabilities 113,532 13,770 106,661 10,680 2,357 - 11,415 258,415 Total Liabilities S 134,195 16,547 120,475 17,584 2,839 614 30,887 323,141

DEFERRED INFLOWS OF RESOURCES S
Deferred Inflows of Resources 3,239 3,712 6,972 7,559 1,666 - 9,570 32,718

NET POSITION S
Net Investment in Capital Assets S 9,083 74,876 214,637 13,845 - - 14 312,455 Restricted for:

Debt Service - 304 4,075 - - - - 4,379 Capital Projects - - 28,063 - - - - 28,063 Airport - - 9,636 - - - - 9,636 Subsidence - - - - - 191,151 - 191,151 Unrestricted (64,730) 4,490 (7,167) 7,365 (2,416) - (2,782) (65,240) Total Net Position (55,647)$ 79,670 $ 249,244 $ 21,210 $ (2,416) $ 191,151 $ (2,768) $ 480,444$ Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
City of Long Beach
(In Thousands)
September 30, 2021
Combining Statement of Net Position
Nonmajor Enterprise Funds
148 149
See accompanying Independent Auditors’ Report
Total
Nonmajor
Tideland Solid Waste Development Proprietary
Oil Revenue Sewer Airport Management Towing Subsidence Services Funds Operating Revenues:

Licenses and Permits - - - 2,545 - - 15,861 18,406 Fines and Forfeitures - - 15 - - - - 15 Fees, Concessions and Rentals 95,009 - 28,527 - - - - 123,536 From Other Agencies - - 821 482 - - 1,032 2,335 Charges for Services 4,133 18,197 222 79,318 6,140 - 1,548 109,558 Other - 86 - 377 - - 229 692 Total Operating Revenues 99,142 18,283 29,585 82,722 6,140 - 18,670 254,542 Operating Expenses:

Personnel Services 1,472 3,255 7,738 12,743 2,354 - 9,123 36,685 Maintenance and Other Operations 4,850 7,145 22,629 63,643 2,202 - 13,237 113,706 Rental Expense - - 184 184 Payments to Other Entities 69,919 - - - - - - 69,919 Depreciation 330 2,842 14,827 772 - - 11 18,782 Total Operating Expenses 76,571 13,242 45,194 77,342 4,556 - 22,371 239,276 Operating Income (Loss) 22,571 5,041 (15,609) 5,380 1,584 - (3,701) 15,266 Non-Operating Income (Expenses):

Interest Income - - - - 8 - - 8 Interest Expense - (244) (6,304) (36) - (287) (150) (7,021) - - - 1 - - - 1 Oil Field Abandonment Costs (7,700) - - - - - - (7,700) Operating Grants - - 91 - - - - 91 Other Income (Expenses) 2 1,330 1,314 - - 500 - 3,146 Other Expense - (1,406) (4) (3) (3) - - (1,416) Total Non-Operating Income (Expenses) (7,698) (320) (4,903) (38) 5 213 (150) (12,891) Income Before Contributions 14,873 4,721 (20,512) 5,342 1,589 213 (3,851) 2,375 Capital Grants and Contributions - 189 25,342 - - - - 25,531 Transfers:

Transfers In 5,700 - - 292 - - - 5,992 Transfers Out (13,495) - - (599) - - (2,404) (16,498) Change in Net Position 7,078 4,910 4,830 5,035 1,589 213 (6,255) 17,400 Net Position - October 1 (62,725) 74,760 244,414 16,175 (4,005) 190,938 3,487 463,044 Net Position - September 30 (55,647)$ 79,670$ 249,244 $ 21,210$ (2,416)$ 191,151 $ (2,768)$ 480,444$ Gain (Loss) on Disposition of Capital Assets
City of Long Beach
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Fiscal Year Ended September 30, 2021
(In Thousands)
150
See accompanying Independent Auditors’ Report
Total
Tideland Nonmajor
Oil Development Proprietary
Revenue Sewer Airport Towing Subsidence Services Funds
Cash Flows from Operating Activities:

Receipts from Customers 6,275$ 18,300 $ 26,646$ 81,377$ 6,358$ -$ 19,100$ 158,056$ Receipts from Oil Companies 91,717 - - - - - 91,717 Receipts from Other Entities - - 16,165 482 - - - 16,647 Receipts from Other Funds - - 67 693 - - - 760 Payments for Employee Salaries (3,278) (4,683) (10,767) (15,985) (2,988) - (13,474) (51,175) Payments for Goods and Services - (7,713) (28,853) (65,798) (2,154) - (13,349) (117,867) Payments to Other Funds (1,141) - - - - - - (1,141) Payments to Other Entities (75,136) - - - - - - (75,136) Other Income 2 1,292 158 - - - - 1,452 Other Expense - (1,406) (4) (3) (3) - - (1,416) Net Cash Provided by (Used for) Operating Activities 18,439 5,790 3,412 766 1,213 - (7,723) 21,897 Cash Flows from Non-Capital Financing Activities:

Operating Grants Received from Other Governments - - 91 - - - - 91 Operating Subsidies Paid to Other Funds - - (29) - - (29) Transfers In 5,700 - - 292 - - - 5,992 Transfers Out (13,495) - - (599) - - (2,404) (16,498) Net Cash Used for Non-Capital Financing Activities (7,795) - 91 (336) - - (2,404) (10,444) Cash Flows from Capital and Related Financing Activities:

Proceeds from the Sale of Capital Assets - - - 1 - - - 1 Receipts of Contributed Capital - 189 21,873 - - - - 22,062 Receipts from Passenger Facility Charges - - 3,469 - - - - 3,469 Receipts of Federal Subsidy - - 1,156 - - - - 1,156 Payments for Capital Acquisitions - (6,421) (39,717) (2,182) - - (224) (48,544) Payments of Principal on Bonds Payable - (375) (3,157) - - - - (3,532) Payments of Interest S - (354) (6,010) - - - - (6,364) Net Cash Provided by (Used for)
- (6,961) (22,386) (2,181) - - (224) (31,752) Cash Flows from Investing Activities:
- - 1,238 - - - - 1,238 Payments of Interest - (19) (237) (36) 8 213 (150) (221) - (19) 1,001 (36) 8 213 (150) 1,017 Net Increase (Decrease) in Cash and Cash Equivalents 10,644 (1,190) (17,882) (1,787) 1,221 213 (10,501) (19,282) Cash and Cash Equivalents - October 1 41,261 13,755 75,243 25,172 248 190,937 47,186 393,802 Cash and Cash Equivalents - September 30 51,905$ 12,565$ 57,361$ 23,385$ 1,469$ 191,150 $ 36,685$ 374,520$ Operating Income (Loss) 22,571$ 5,041$ (15,609) 5,380 $ 1,584$ -$ (3,701)$ 15,266$ Adjustments to Reconcile Operating Income (Loss) to Net S Cash Provided by Operating Activities:

Operating Activities:

Depreciation and Amortization Expense 330 2,842 14,827 772 - - 11 18,782 Other Income 2 1,404 158 - - - - 1,564 Other Expense - (1,406) (4) (3) (3) - - (1,416) (Increase) Decrease in Accounts Receivable, Net S (7,319) (196) (1,742) (787) 7 - 1,774 (8,263) Increase in Amounts Due from Other Governments (3,247) - 15,344 - - - - 12,097 (Increase) Decrease in Amounts Due from Other Funds (1,141) 57 67 693 211 500 - 387 Increase in Other Operating Assets 6 - - - - - - 6 Increase (Decrease) in Accounts Payable 11,119 (581) (6,194) (1,747) 35 - 141 2,773 Increase (Decrease) in Accrued Wages Payable (1,806) (1,429) (3,029) (3,242) (634) - (4,351) (14,491) Increase in Amounts Due to Other Funds (1,970) 11 - (224) 13 - (253) (2,423) Increase (Decrease) in Unearned Revenues - 120 (376) - - (500) (338) (1,094) Increase in Collections Held in Trust (106) (73) (30) (76) - - (1,006) (1,291) Total Adjustments (4,132) 749 19,021 (4,614) (371) - (4,022) 6,631 Net Cash Provided by (Used for) Operating Activities 18,439$ 5,790$ 3,412$ 766$ 1,213 $ -$ (7,723)$ 21,897$ NON-CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: S Accrued Oilfield Abandonment Costs 7,700$ -$ -$ -$ -$ -$ -$ 7,700 $ Combining Statement of Cash Flows
Nonmajor Enterprise Funds
City of Long Beach
(In Thousands)
For the Fiscal Year Ended September 30, 2021
Capital and Related Financing Activities
Net Cash Provided by (Used for) Investing Activities
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS: S

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

Solid Waste
Management
Proceeds from Sale of Investments
151150
Total
Tideland Nonmajor
Oil Development Proprietary
Revenue Sewer Airport Towing Subsidence Services Funds
Cash Flows from Operating Activities:

Operating Activities:

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

Solid Waste
Management
Proceeds from Sale of Investments

INTERNAL SERVICE FUNDS

Internal Service Funds are established to finance and account for goods and services provided by one City department to other City departments on a cost-reimbursement basis, including depreciation.

The Civic Center Fund is used to account for the operation and maintenance of the City Hall and Main Library Complex.

The General Services Fund is used to account for the operation, maintenance, and replacement of the City's electronic data processing equipment and software, radio systems, telephone, mailing and reprographics services.

The Fleet Services Fund is used to account for the operation, maintenance, and replacement of the City's fleet of vehicles and equipment.

The Workers’ Compensation Insurance Fund is used to finance and account for the City's Workers’ Compensation Insurance Program programs.

The General Liability Insurance Fund is used to finance and account for the City's General Liability insurance programs.

The Employee Benefits Fund is used to finance and account for compensated absences, employer payroll taxes, and health and retirement benefits.

152
See accompanying Independent Auditors’ Report
Total
Workers' General Internal
Civic General Fleet Compensatio n Liability Employee Service Center Services Services Insurance Insurance Benefits Funds ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 247$ 25,276$ 53,197$ 38,154$ 724$ 29,201$ 146,799$ Non-Pooled Cash and Cash Equivalents - 1,578 - - - - 1,578 Receivables:

Accounts Receivable - 1,266 31 - - 235 1,532 Due from Other Governments - - 30 - - - 30 Due from Other Funds 118 2,387 613 1,637 - 22,578 27,333 Allowance for Receivables - - (24) - - - (24) Deposits - - - - - 9,365 9,365 Inventory - - 3,119 - - - 3,119 Total Current Assets 365 30,507 56,966 39,791 724 61,379 189,732 Noncurrent Assets:

Noncurrent Receivables:

Advances to Other Funds - - 1,600 - - 4,087 5,687 Capital Assets:
28,110 14,169 - - - - 42,279 319,351 47,447 67,251 3 6 - 434,058 Other Assets - Long-Term 6,375 - - - - - 6,375 Total Noncurrent Assets 353,836 61,616 68,851 3 6 4,087 488,399 Total Assets 354,201 92,123 125,817 39,794 730 65,466 678,131

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 84 4,160 2,389 862 601 1,255 9,351

LIABILITIES
Current Liabilities Payable from Current Assets:

Accounts Payable 1,521 2,072 4,874 81 1,097 6,496 16,141 Accrued Wages and Benefits 13 607 306 351 100 5,661 7,038 Accrued Interest Payable - 600 126 - - 47 773 Due to Other Funds 5,015 684 315 395 112 - 6,521 Collections Held in Trust - - - - - 4,097 4,097 - 1,898 824 342 363 3,368 6,795 Accrued Claims - Current - - - 20,482 11,123 - 31,605 Environmental Remediation - Current - - 175 - - - 175 Obligations under Capital Leases - Current - 7,493 1,637 - - - 9,130 Bonds Payable Due within One Year - - 1,612 - - - 1,612 Other Long Term Obligation - Current 5,189 - - - - - 5,189 Total Current Liabilities 11,738 13,354 9,869 21,651 12,795 19,669 89,076 Noncurrent Liabilities:
- 3,967 2,143 611 442 692 7,855 Accrued Claims - - - 111,598 33,182 - 144,780 Environmental Remediation - - 725 - - - 725 Obligations under Capital Lease - 25,390 4,423 - - - 29,813 Other Long Term Obligations 284,576 - - - - - 284,576 Bonds Payable - - 16,340 - - - 16,340 OPEB Liability - 237 126 39 27 43 472 Net Pension Liability 442 15,812 6,777 4,038 2,448 3,917 33,434 Total Noncurrent Liabilities 285,018 45,406 30,534 116,286 36,099 4,652 517,995 Total Liabilities 296,756 58,760 40,403 137,937 48,894 24,321 607,071

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 775 13,991 6,534 3,823 2,159 3,984 31,266

NET POSITION (DEFICIT)
Net Investment in Capital Assets S 57,312 30,074 43,239 3 6 - 130,634 Restricted for:

Capital Projects - 1,395 - - - - 1,395 Insurance - - - - - 18,611 18,611 Unrestricted (558) (7,937) 38,030 (101,107) (49,728) 19,805 (101,495) Total Net Position (Deficit) 56,754$ 23,532$ 81,269$ (101,104)$ (49,722) $ 38,416$ 49,145$ Land and Other Capital Assets Not Being Depreciated
Capital Assets, Net of Accumulated Depreciation
Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
City of Long Beach
Internal Service Funds
(In Thousands)
September 30, 2021
Combining Statement of Net Position (Deficit)
152 153
See accompanying Independent Auditors’ Report
Total
Workers' General Internal
Civic General Fleet Compensation Liabilit y Employee Service Center Services Services Insurance Insurance Benefits Funds Operating Revenues:

Billing to Other Departments 22,675$ 53,402$ 41,539$ 30,222$ 26,541$ 305,867$ 480,246$ Other - 5,029 372 66 320 - 5,787 Total Operating Revenues 22,675 58,431 41,911 30,288 26,861 305,867 486,033 Operating Expenses:

Personnel Services - 16,208 7,161 3,751 2,948 5,007 35,075 Maintenance and Other Operations 11,329 29,924 16,248 2,646 4,303 3,368 67,818 Insurance Premiums - - - - 10,508 - 10,508 Self-Insured Losses - - - 8,133 4,434 - 12,567 Compensated Absences - - - 7,051 - 53,931 60,982 Employee Benefits - - - - - 266,180 266,180 Depreciation 9,119 8,634 12,532 3 1 - 30,289 Total Operating Expenses 20,448 54,766 35,941 21,584 22,194 328,486 483,419 Operating Income (Loss) 2,227 3,665 5,970 8,704 4,667 (22,619) 2,614 Non-Operating Income (Expenses):

Interest Income - - - - 1 - 1 Interest Expense (5,542) (1,877) (1,177) (23) - (1,278) (9,897) Gain (Loss) on Disposition of Capital Assets - (9) 908 - - - 899 Operating Grants - 984 - - - - 984 Other Income 166 - 1,443 - - - 1,609 Other Expense - (50) (715) - - (848) (1,613) Total Non-Operating Income (Expenses) (5,376) (952) 459 (23) 1 (2,126) (8,017) Income (Loss) before Contributions
and Transfers (3,149) 2,713 6,429 8,681 4,668 (24,745) (5,403) Transfers:

Transfers In 6,621 5,828 746 - - - 13,195 Transfers Out - (3,814) - - - (49,380) (53,194) Change in Net Position 3,472 4,727 7,175 8,681 4,668 (74,125) (45,402) Net Position (Deficit) - October 1, as adjusted 53,282 18,805 74,094 (109,785) (54,390) 112,541 94,547 Net Position (Deficit) - September 30 56,754$ 23,532$ 81,269$ (101,104)$ (49,722)$ 38,416$ 49,145$ City of Long Beach
(In Thousands)
For the Fiscal Year Ended September 30, 2021
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) Internal Service Funds
154
See accompanying Independent Auditors’ Report
Total
Workers' General Internal
Civic General Flee t Compensation Liability Employee Service Center Services Services Insurance Insurance Benefits Funds Cash Flows from Operating Activities:

Receipts from Customers -$ 5,029$ 63$ -$ -$ -$ 5,092$ Receipts from Other Funds 26,559 52,140 41,299 37,749 28,369 322,397 508,513 Receipts from Other Entities (357) (690) (718) 114 (6,623) - (8,274) Payments for Employee Salaries (10) (16,561) (7,261) (3,769) (2,976) (17,235) (47,812) Payments for Goods and Services (13,603) (31,009) (13,588) (2,784) (3,935) - (64,919) Payments for Compensated Absences - (46) (23) (7,033) 588 (53,458) (59,972) Payments for Employee Benefits (770) (5,558) (2,791) (1,941) (1,098) (278,290) (290,448) Payments for Liability Claims - - - (13,038) (13,688) - (26,726) Other Income - - 1,443 - - 1,443 Other Expense - (50) (715) - - (848) (1,613) Net Cash Provided by (Used for) Net Cash Provided by (Used for) Operating Activities 11,819 3,255 17,709 9,298 637 (27,434) 15,284 Cash Flows from Non-Capital Financing Activities:

Other Income 166 - - - - - 166 Operating Grants Received from Other Governments - 984 - - - - 984 Operating Subsidies Paid to Other Funds - (3,814) - - - (49,380) (53,194) Operating Subsidies Received from Other Funds 6,621 5,828 746 - - - 13,195 Net Cash Provided by (Used for)
Non-Capital Financing Activities 6,787 2,998 746 - - (49,380) (38,849) Cash Flows from Capital and Related Financing Activities:

Proceeds from the Sale of Capital Assets - - 954 - - - 954 Payments for Capital Acquisitions (7,768) (4,551) (12,056) - - - (24,375) Payments of Principal on Bonds Payable - - (1,542) - - (6,765) (8,307) Payments of Principal on Other Long-Term Obligations (5,099) (4,160) (1,873) - - - (11,132) Payments of Interest (5,542) (1,624) (908) - - (431) (8,505) Net Cash Provided by (Used for)
Capital and Related Financing Activities (18,409) (10,335) (15,425) - - (7,196) (51,365) Cash Flows from Investing Activities:

Payments of Interest - (258) (479) (23) 1 (1,247) (2,006) Net Cash Provided by (Used for) Investing Activities - (258) (479) (23) 1 (1,247) (2,006) Net Decrease in Cash and Cash Equivalents 197 (4,340) 2,551 9,275 638 (85,257) (76,936) Cash and Cash Equivalents - October 1 50 31,194 50,646 28,879 86 114,458 225,313 Cash and Cash Equivalents - September 30 247$ 26,854$ 53,197$ 38,154$ 724$ 29,201$ 148,377 $ Operating Income (Loss) 2,227$ 3,665$ 5,970$ 8,704$ 4,667$ (22,619)$ 2,614$ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by (Used for) Operating Activities:
9,119 8,634 12,532 3 1 - 30,289 - - 1,443 - - - 1,443 - (50) (715) - - (848) (1,613) 1,000 - 63 1 - 2,741 3,805 (Increase) Decrease in Amounts Due from Other Funds 2,884 (1,262) (612) 7,460 1,508 (3,602) 6,376 - - (259) - - - (259) Decrease in Other Operating Assets 125 - - - - 29,244 29,369 (2,399) (5,957) 2,919 (138) 368 (8,620) (13,827) Increase (Decrease) in Accrued Wages Payable (780) (1,085) (2,914) (1,941) (538) (15,367) (22,625) (357) (690) (718) 114 (6,623) (8,971) (17,245) - - - (4,905) 1,254 - (3,651) - - - - - 608 608 Total Adjustments 9,592 (410) 11,739 594 (4,030) (4,815) 12,670 Net Cash Provided by (Used for) Operating Activities 11,819 $ 3,255$ 17,709$ 9,298$ 637$ (27,434)$ 15,284$ Borrowing under Capital Lease or Other Long-term Debt 99,287$ -$ -$ -$ -$ -$ 99,287$

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
City of Long Beach
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended September 30, 2021
(In Thousands)
NON-CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES: S

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES S
Other Expense
Depreciation and Amortization Expense
Other Income
Increase in Collections Held in Trust
Increase in Accrued Claims Payable
(Increase) Decrease in Accounts Receivable, Net
Increase (Decrease) in Amounts Due to Other Funds
Increase (Decrease) in Accounts Payable
Increase in Inventory
155154
Total
Workers' General Internal
Civic General Flee t Compensation Liability Employee Service Center Services Services Insurance Insurance Benefits Funds Cash Flows from Operating Activities:

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET

FIDUCIARY FUNDS

Fiduciary Funds, comprised of Private Purpose Trust and Custodial Funds, are used to account for assets held by the City in a trustee capacity or as an agent for other governmental units, private organizations, or individuals.

Custodial Funds are used to account for funds held by the City as an agent for other governmental units, private organizations, or individuals.

Private Purpose Trust Funds are used to account for trust monies, wherein the principal and interest of the trust can be expended by the City in accordance with the terms of the trust agreement.

The Miller Library and Miller Museum Funds are used to account for bequests from Lorraine Miller Collins. The principal and interest on the tr usts are to be used to maintain and purchase materials for the Miller Special Collections room in the City’s Main Library.

The Mayor’s Fund for the Homeless is used to account for donations from the public for use in assisting the City’s homeless population.

156
See accompanying Independent Auditors’ Report
Belmont Intermodal
Shore Taxes Special Containe r
Parking Oil Assessmen t Transfer
District Rights Districts Facility JP A
ASSETS:

Pooled Cash and Cash Equivalents 89$ 1,819$ 501$ 6,500 $ Non-pooled Investments - - 1,095 - Non-Pooled Cash and Cash Equivalents - - 8,478 - Property Taxes Receivable, Net - - 19 - Interest Receivable - - 30 - Accounts Receivable - - - - Prepaid Expense - - - - Land - - - - Total Assets 89 1,819 10,123 6,500 LIABILITIES:

Accounts Payable 89 - - - Total Liabilities 89 - - - NET POSITION:

Held in Trust -$ 1,819$ 10,123 $ 6,500$ Belmont Intermodal
Shore Taxes Special Containe r
Parking Oil Assessmen t Transfer
District Rights Districts Facility JP A
ADDITIONS:

Contributions -$ -$ 430$ 4,261 $ Taxes - - 5,242 - Grants - - - - Use of Money and Property - 14 40 78 Miscellaneous Revenue - - 8 - Total Additions - 14 5,720 4,339 DEDUCTIONS:

Accounts Payable 89 - - - Total Liabilities 89 - - - NET POSITION:

Held in Trust -$ 1,819$ 10,123 $ 6,500$ Belmont Intermodal
Shore Taxes Special Containe r
Parking Oil Assessmen t Transfer
District Rights Districts Facility JP A
ADDITIONS:

Contributions -$ -$ 430$ 4,261 $ Taxes - - 5,242 - Grants - - - - Use of Money and Property - 14 40 78 Miscellaneous Revenue - - 8 - Total Additions - 14 5,720 4,339 DEDUCTIONS:

Administrative Expense - - 12 - Payments to Bond Holders - - 5,344 6,000 Payments to Others - - 227 - Total Deductions - - 5,583 6,000 Change in Net Position - 14 137 (1,661) Net Position, October 1 - 1,805 9,986 8,161 Net Position, September 30 -$ 1,819$ 10,123 $ 6,500$ (In Thousands)
City of Long Beach
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Fiscal Year Ended September 30, 2021
City of Long Beach
Combining Statement of Fiduciary Net Position
Custodial Funds
September 30, 2021
(In Thousands)
Earthquake Los Cerritos Other Total
Assessment Wetlands Custodia l Custodial
District Authority Funds Funds
ASSETS:
826$ -$ 3,424$ 13,159 $ Pooled Cash and Cash Equivalents - - - 1,095 Non-pooled Investments - 241 - 8,719 Non-Pooled Cash and Cash Equivalents 1 - 127 147 Property Taxes Receivable - - - 30 Interest Receivable - 185 873 1,058 Accounts Receivable - 8 - 8 Prepaid Expense - 11,000 - 11,000 Lan d 827 11,434 4,424 35,216 Total Assets LIABILITIES:
- 166 53 308 Accounts Payable - 166 53 308 Total Liabilities NET POSITION:
827$ 11,268$ 4,371$ 34,908 $ Held in Trust Earthquake Los Cerritos Other Total
Assessment Wetlands Custodia l Custodial
District Authority Funds Funds
ADDITIONS:
-$ 39 $ -$ 4,730$ Contribution s - - 5,367 10,609 Taxes - 356 - 356 Grants - 64 38 234 Use of Money and Propert y - 44 - 52 Miscellaneous Revenue - 503 5,405 15,981 Total Additions DEDUCTIONS:
1 - - 13 Administrative Expense - - - 11,344 Payments to Bond Holder s - 430 4,719 5,376 Payments to Others 1 430 4,719 16,733 Total Deductions (1) 73 686 (752) Change in Net Position 828 11,195 3,685 35,660 Net Position, October 1 827$ 11,268$ 4,371$ 34,908 $ Net Position, September 30 158
See accompanying Independent Auditors’ Report
Mayor's
Fund Total
Miller for the Se ptember 30,
Library Homeless 2021
ASSETS
Pooled Cash and Cash Equivalents 613$ 5$ 618$

NET POSITION
Held in Trust for Private Purpose
Trust Funds 613$ 5$ 618$
Fiduciary Funds
Private Purpose Trust Funds
Mayor's
Fund Total
Miller for the September 30,
Library Homeless 2021
Additions:

Use of Money and Property -$ -$ -$ Deductions:

Administrative Expense 37 - 37 Change in Net Position (37) - (37) Net Position, October 1 650 5 655 Net Position, September 30 613$ 5$ 618$ City of Long Beach
Fiduciary Funds
Private Purpose Trust Funds
Combining Statement of Net Position
September 30, 2021
(In Thousands)
(In Thousands)
Combining Statement of Changes in Net Position
For the Fiscal Year Ended September 30, 2021
City of Long Beach
158
OTHER

SUPPLEMENTARY

INFORMATION
159 159
See accompanying Independent Auditors’ Report
Total
Uplands Combined
General Oil General
Fund Fund Eliminations Fund
ASSETS
Pooled Cash and Cash Equivalents 159,522$ 12,815$ -$ 172,337$ Non-Pooled Cash and Cash Equivalents 1,373 - - 1,373 Property Taxes 113,077 - - 113,077 Accounts Receivable 27,673 1,420 - 29,093 Due from Other Governments 40,851 - - 40,851 Due from Other Funds 29,972 1,543 (1,543) 29,972 Allowance for Receivables (8,890) - - (8,890) Other Assets 2,127 - - 2,127 Total Assets 365,705$ 15,778$ (1,543)$ 379,940$

LIABILITIES
Accounts Payable 15,364 200 - 15,564 Accrued Wages and Benefits Payable 11,677 - - 11,677 Due to Other Governments 251 - - 251 Due to Other Funds 58,836 - (1,543) 57,293 Unearned Revenues 6,138 - - 6,138 Deposits and Collections Held in Trust 3,819 - - 3,819 Advances from Other Funds 114 - - 114 Total Liabilities 96,199 200 (1,543) 94,856

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 112,403 - - 112,403

FUND BALANCES
Nonspendable 2,127 - - 2,127 Restricted 2,836 - - 2,836 Committed 60,965 15,578 - 76,543 Assigned 107,658 - - 107,658 Unassigned (16,483) - - (16,483) Total Fund Balances 157,103 15,578 - 172,681 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 365,705$ 15,778$ (1,543)$ 379,940$ Receivables:
(In Thousands)
City of Long Beach
General Fund
Combining Balance Sheet
September 30, 2021
160
See accompanying Independent Auditors’ Report
Total
Uplands Combined
General Oil General
Fund Fund Eliminations Fund
Revenues:

Taxes:

Property 200,359 $ -$ -$ 200,359$ Sales 148,449 - - 148,449 Utility Users 38,546 - - 38,546 Other Taxes 30,404 - - 30,404 Franchise Fees 23,734 - - 23,734 Licenses and Permits 36,550 - - 36,550 Fines and Forfeitures 14,395 - - 14,395 Use of Money and Property 18,811 11,190 - 30,001 From Other Agencies 8,482 - - 8,482 Charges for Services 39,646 - - 39,646 Other 5,391 - - 5,391 Total Revenues 564,767 11,190 - 575,957 Expenditures:

Legislative and Legal 16,537 - - 16,537 General Government 34,860 - - 34,860 Public Safety 408,803 - - 408,803 Public Health 19,885 - - 19,885 Community and Cultural 53,645 - - 53,645 Public Works 58,535 - - 58,535 Oil Operations - 2,446 - 2,446 Total Current Expenditures 592,265 2,446 - 594,711 Capital Improvements 24,765 - - 24,765 Debt Service:

Principal 1,436 - - 1,436 Interest 42 - - 42 Debt Administration Fees 9 - - 9 Total Expenditures 618,517 2,446 - 620,963 Excess of Revenues over
Expenditures (53,750) 8,744 - (45,006) Other Financing Sources (Uses):

Proceeds from Sale of Capital Asset 713 - - 713 Transfers In 178,264 1,543 (9,138) 170,669 Transfers Out (91,130) (7,633) 9,138 (89,625) Total Other Financing Sources (Uses) 87,847 (6,090) - 81,757 Net Change in Fund Balances 34,097 2,654 - 36,751 Fund Balances - October 1 123,006 12,924 - 135,930 Fund Balances - September 30 157,103$ 15,578$ -$ 172,681$ (In Thousands)
City of Long Beach
General Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended September 30, 2021
160 161
See accompanying Independent Auditors’ Report
Combined Variance with
CalPERS Actual on Final Budget -
Prepayment Budgetary Positive
General Uplands Oil Combined General Uplands Expense Basis (Negative) Revenues:

Property Taxes 189,843$ -$ 189,843$ 200,359$ -$ -$ 200,359$ 10,516$ Sales Taxes 129,427 - 129,427 148,449 - - 148,449 19,022 Utility Users Taxes 34,905 - 34,905 38,546 - - 38,546 3,641 Other Taxes 32,491 - 32,491 30,404 - - 30,404 (2,087) Franchise Fees 27,079 - 27,079 23,734 - - 23,734 (3,345) Licenses and Permits 31,788 - 31,788 36,550 - - 36,550 4,762 Fines and Forfeitures 19,379 - 19,379 14,395 - - 14,395 (4,984) Use of Money and Property 21,457 9,771 31,228 18,811 11,190 - 30,001 (1,227) From Other Agencies 6,580 - 6,580 8,482 - - 8,482 1,902 Charges for Services 8,402 - 8,402 39,646 - - 39,646 31,244 Other 1,163 - 1,163 5,391 - - 5,391 4,228 Proceeds from Sale of Capital Asset - - - 713 - - 713 713 Transfers In 44,719 - 44,719 169,126 1,543 - 170,669 125,950 Total Revenues 547,233 9,771 557,004 734,606 12,733 - 747,339 190,335 Expenditures:

Current:

Legislative and Legal
Mayor and City Council 7,793 - 7,793 6,915 - (756) 6,159 1,634 City Attorney 3,604 - 3,604 4,328 - (786) 3,542 62 City Clerk 6,340 - 6,340 5,294 - (357) 4,937 1,403 General Government
City Auditor 3,024 - 3,024 3,374 - (381) 2,993 31 City Manager 10,209 - 10,209 10,057 - (924) 9,133 1,076 Civil Service 3,223 - 3,223 3,615 - (405) 3,210 13 Financial Management 61,832 - 61,832 16,473 - (2,248) 14,225 47,607 Planning and Building 1,867 - 1,867 2,122 - (412) 1,710 157 Public Safety
Police 252,373 - 252,373 260,373 - (20,149) 240,224 12,149 Fire 113,655 - 113,655 123,380 - (10,767) 112,613 1,042 Disaster Preparedness 12,706 - 12,706 14,342 - (1,692) 12,650 56 City Prosecutor 7,128 - 7,128 7,169 - (924) 6,245 883 Planning and Building-Code Enforcement 3,371 - 3,371 4,397 - (665) 3,732 (361) Public Health 39,423 - 39,423 20,584 - (340) 20,244 19,179 Community and Cultural
Development Services 7,275 - 7,275 679 - - 679 6,596 Library 20,608 - 20,608 20,690 - (1,549) 19,141 1,467 Parks and Recreation 34,103 - 34,103 32,407 - (2,283) 30,124 3,979 Public Works 93,049 - 93,049 58,669 - (4,741) 53,928 39,121 Oil Operations - 3,302 3,302 - 2,446 - 2,446 856 Capital Outlay 24,539 - 24,539 24,765 - - 24,765 (226) Debt Service 512 - 512 1,487 - - 1,487 (975) Transfers Out 45,282 6,506 51,788 81,992 7,633 - 89,625 (37,837) Total Expendtures 751,916 9,808 761,724 703,112 10,079 (49,379) 663,812 97,912 Net Change in Budgetary Fund Balance: (204,683)$ (37)$ (204,720)$ 31,494$ 2,654$ 49,379$ 83,527$ 92,423$ General Uplands Oil Combined
Change in Fund Balance - September 30, Budgetary Basis 31,494$ 2,654$ 34,148$ Add: Encumbrances 2,603 - 2,603 Change in Fund Balance - September 30, GAAP Basis 34,097 2,654 36,751 Fund Balance, October 1, GAAP Basis 123,006 12,924 135,930 Fund Balance, September 30, GAAP Basis 157,103$ 15,578$ 172,681$ City of Long Beach
General Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Actual on Budgetary Basis
Budgeted Amounts
Final Amended Budget
Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Total
Uplands Combined
General Oil General
Fund Fund Eliminations Fund
Revenues:

Taxes:

Proceeds from Sale of Capital Asset 713 - - 713 Transfers In 178,264 1,543 (9,138) 170,669 Transfers Out (91,130) (7,633) 9,138 (89,625) Total Other Financing Sources (Uses) 87,847 (6,090) - 81,757 Net Change in Fund Balances 34,097 2,654 - 36,751 Fund Balances - October 1 123,006 12,924 - 135,930 Fund Balances - September 30 157,103$ 15,578$ -$ 172,681$ (In Thousands)
City of Long Beach
General Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended September 30, 2021
162
See accompanying Independent Auditors’ Report
Variance with
Final Actual on a Final Budget
Adopted Amended Budgetary Favorable /
Revenues: Budget Budget Basis (Unfavorable)
Sales Taxes 62,688$ 62,688$ 73,485$ 10,797$ Use of Money and Property 160 160 - (160) Transfers In (a)
- 166 656 490
Total Revenues 62,848 63,014 74,141 11,127 Expenditures:

General Government 208 208 207 1 Public Safety 37,760 38,466 38,467 (1) Public Works 1,000 4,091 3,329 762 Transfers Out (b)
21,115 25,648 26,979 (1,331)
Total Expenditures 60,083 68,413 68,982 (568) Net Change in Fund Balance (Deficit) 2,765 (5,399) 5,159 11,695 Fund Balance October 1, GAAP Basis 17,635 17,635 17,635 Fund Balance September 30, Budgetary Basis 20,400$ 12,236$ 22,794$ Fund Balances as of September 30, 2021
Assigned for Subsequent year Programmed Uses, October 1 17,635$ Less:

Programmed Releases in Fiscal Year 2021 (c)
(10,482)
Add:

New Programmed Assignments as of September 30 (d)
5,674
Amounts Assigned for Subsequent Year Programmed Uses 12,827 Unassigned Fund Balance 9,967
Total Measure A Fund Balance 22,794$
Notes:
(a) Amounts "transferred in" are transferred from the City's Capital Projects fund for use in authorized Measure A projects. (c) Amounts released from reserves during fiscal year to fund Measure A projects as programmed in prior fiscal years. (d) Amounts reserved to fund future Measure A projects.

Schedule of Revenues, Expenditures, and Changes in Fund Balances - City of Long Beach
Measure A Fund
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended September 30, 2021
(In Thousands)
(b) Amounts "transferred out" are transferred to the City's Capital Projects fund for use in authorized Measure A projects. 162 163
See accompanying Independent Auditors’ Report
Variance
with Final
Actual on Budget
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 3,000$ 27,247$ -$ (27,247)$ Other Taxes 1,027 1,027 - (1,027)
Use of Money and Property 806 806 389 (417) From Other Agencies 44,004 93,991 76,106 (17,885) Charges for Services - 15,120 - (15,120) Other - 203 580 377 Transfers In 75,115 66,605 37,465 (29,140) Total Revenues 123,952 204,999 114,540 (90,459) Expenditures:

General Government
Financial Management 200 200 - 200 Public Works 27,827 52,397 8,569 43,828 Capital Improvements 74,968 245,435 144,766 100,669 Transfers Out 18,800 43,047 1,109 41,938 Total Expenditures 121,795 341,079 154,444 186,635 Net Change in Budgetary Fund Balance (Deficit) 2,157$ (136,080)$ (39,904)$ 96,176$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (39,904)$ Add: Encumbrances 68,563
Change in Fund Balance - September 30, GAAP Basis 28,659 Fund Balance, October 1, GAAP Basis 129,401
Fund Balance, September 30, GAAP Basis 158,060$
Budgeted Amounts
For the Fiscal Year Ended September 30, 2021
(In Thousands)
City of Long Beach
General Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
164

Intentionally Left Blank

165

TIDELANDS OPERATING FUND
The Tidelands Operating Fund is used to accoun t for the various business-type operations that the City oversees in the Tidelands Trust area. Th ese operations include the Long Beach Convention and Entertainment Center, Queen Mary, Rainbow Har bor Area, marinas, beach maintenance, and beach/water safety programs directly related to the tidelands area, including lifeguards and patrol boats.

The City has issued revenue bonds to finance the purchase of the Aquarium of the Pacific and the Rainbow Harbor Area infrastructure improvement s. Each of the revenue bonds is accounted for in the City’s Tidelands Fund.

Summary financial information for the consolidated Tidelands Enterprise Fund is presented on the following pages (in thousands) as of September 30, 2021:

166
See accompanying Independent Auditors’ Report
Consolidated
Aquarium Total Adjustments Tidelands
Tideland Tideland Queen of the Before and Operating
Operating Parking Marina Mar y Pacific Elimination Eliminations Tota l ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 85,979 $ 6,460$ 37,826 $ 315 $ 10,408$ 140,988 $ - $ 140,988$ Non-Pooled Cash and Cash Equivalents 29 - 1,437 2,419 24,077 27,962 - 27,962 Receivables:

Interest Receivable 1 - 30 - 30 61 - 61 Accounts Receivable 11,625 83 1,026 908 - 13,642 - 13,642 Due from Other Governments 218 - 50 - - 268 - 268 Due from Other Funds 21,733 - - - - 21,733 - 21,733 Allowance for Receivables (1,171) (3) (605) (125) - (1,904) - (1,904) Total Current Assets 118,414 6,540 39,764 3,517 34,515 202,750 - 202,750 Noncurrent Assets:

Non-Pooled Investments - - 7,296 - 8,588 15,884 - 15,884 Capital Assets:

Land and Other Capital Assets Not Being Depreciated 53,418 - 1,992 3,442 9,900 68,752 - 68,752 Capital Assets Net of Accumulated Depreciation 146,859 8,345 102,177 3,215 16,172 276,768 - 276,768 Total Noncurrent Assets 200,277 8,345 111 ,465 6 ,657 34 ,660 361 ,404 - 361 ,404 Total Assets 318,691 14,885 151 ,229 10 ,174 69 ,175 564 ,154 - 564 ,154

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 5,367 - 2 ,488 43 4 ,432 12 ,330 - 12 ,330

LIABILITIES
Current Liabilities payable from Current Assets:

Accounts Payable 3,646 176 196 357 - 4,375 - 4,375 Accrued Wages 601 8 277 - - 886 - 886 Accrued Interest Payable 58 - 2,002 144 1,400 3,604 - 3,604 Due to Other Funds 930 9 690 - - 1,629 - 1,629 Unearned Revenues 252 - 1,891 - - 2,143 - 2,143 Collections Held in Trust 139 - 76 - - 215 - 215 Customers Deposits - - 738 25 - 763 - 763 Compensated Absences and Accrued Employee Benefits 2 ,017 - 744 - - 2 ,761 - 2 ,761 Obligations under Capital Leases - Current 41 - - - - 41 - 41 Bonds Payable Due Within One Year 2,905 - 1,900 2,100 6,260 13,165 - 13,165 Other Long Term Obligation - Current 29 - - - - 29 - 29 Total Current Liabilities 10,618 193 8,514 2,626 7,660 29,611 - 29,611 Noncurrent Liabilities:

Advances from Other Funds 1,210 - - - - 1,210 - 1,210 Unearned Revenues 4,403 - 123 - - 4,526 - 4,526 Compensated Absences 5,614 - 1,000 - - 6,614 - 6,614 Obligations under Capital Leases 185 - - - - 185 - 185 Other Long Term Obligations 280 - - - - 280 - 280 Bonds Payable 3,306 - 111,864 9,540 70,378 195,088 - 195,088 Total OPEB Liability 329 - 63 - - 392 - 392 Net Pension Liability 15,034 - 7,107 - - 22,141 - 22,141 Total Noncurrent Liabilities 30,361 - 120 ,157 9 ,540 70 ,378 230 ,436 - 230 ,436 Total Liabilities 40,979 193 128 ,671 12 ,166 78 ,038 260 ,047 - 260 ,047

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 17,730 - 6 ,581 - - 24 ,311 - 24 ,311

NET POSITION
Net Investment in Capital Assets 191,365 8,345 (834) (4,984) (37,570) 156,322 - 156,322 Restricted for:

Debt Service 26 - 382 2,431 3,088 5,927 - 5,927 Capital Projects - 389 - - - 389 - 389 Tidelands - - - - 20,970 20,970 - 20,970 Unrestricted 73,958 5,958 18,917 604 9,081 108,518 - 108,518 Total Net Position 265,349$ 14,692$ 18,465 $ (1,949) $ (4,431) $ 292,126 $ - $ 292,126$ September 30, 2021
(In Thousands)
Combining Schedule of Net Position
City of Long Beach
Tidelands Operating Fund
166 167
See accompanying Independent Auditors’ Report
Consolidated
Aquarium Total Adjustments Tidelands
Tideland Tideland Queen of the Before an d Operating
Operating Parking Marina Mary Pacific Eliminatio n Eliminations Total Operating Revenues:

Licenses and Permits 71$ 137 $ -$ 262$ -$ 470$ -$ 470$ Fines and Forfeitures 311 - - - - 311 - 311 Fees, Concessions, and Rentals 5,872 8,670 25,021 - - 39,563 - 39,563 Charges for Services 30,172 206 73 - 15,932 46,383 - 46,383 Other 4,186 - 87 - - 4,273 - 4,273 Total Revenues 40,612 9,013 25,181 262 15,932 91,000 - 91,000 Operating Expenses:

Personnel Services S 15,959 346 6,956 - - 23,261 - 23,261 Maintenance and Other Operations 40,395 3,387 8,763 1,941 5 54,491 - 54,491 Depreciation 9,989 1,706 6,508 421 3,222 21,846 - 21,846 Total Operating Expenses S 66,343 5,439 22,227 2,362 3,227 99,598 - 99,598 Operating Income (Loss) S (25,731) 3,574 2,954 (2,100) 12,705 (8,598) - (8,598) Non-Operating Income (Expense):

Interest Income - 46 - 13 25 84 - 84 Interest Expense (522) - (5,118) (349) (2,600) (8,589) - (8,589) Gain (Loss) on Disposition of Fixed Assets (2) - 19 - - 17 - 17 Operating Grants 19 - 50 - - 69 - 69 Other Income 5,962 - 1,704 791 - 8,457 - 8,457 Other Expense (865) (1,775) (12) (2) (497) (3,151) - (3,151) Total Non-Operating Income (Expense) 4,592 (1,729) (3,357) 453 (3,072) (3,113) - (3,113) Income (Loss) before Contributions
and Transfers (21,139) 1,845 (403) (1,647) 9,633 (11,711) - (11,711) Capital Grants and Contributions 134 - - - - 134 - 134 Transfers:

Transfers In 35,228 - - 1,971 8,573 45,772 (10,544) 35,228 Transfers Out (14,062) (2,182) - - - (16,244) 10,544 (5,700) Change in Net Position 161 (337) (403) 324 18,206 17,951 - 17,951 Net Position, October 1 265,188 15,029 18,868 (2,273) (22,637) 274,175 - 274,175 Net Position, September 30 S 265,349$ 14,692$ 18,465 $ (1,949) $ (4,431) $ 292,126 $ - $ 292,126$ (In Thousands)
Combining Schedule of Revenues, Expenses and Changes in Fund Net Position City of Long Beach
For the Fiscal Year Ended September 30, 2021
Tidelands Operating Fund
168
See accompanying Independent Auditors’ Report
Consolidated
Aquarium Eliminations Tidelands
INCREASE (DECREASE) IN CASH Tideland Tideland Queen of the Increase Operating AND CASH EQUIVALENTS Operating Parking Marin a Mary Pacific (Decrease) Total Cash Flows from Operating Activities:

Receipts from Customers 32,986$ 8,972$ 25,505$ (605)$ 15,932$ -$ 82,790$ Receipts from Other Funds 2,596 900 1,145 411 - - 5,052 Payments to Other Entities (4,680) (797) (87) - - - (5,564) Payments for Employee Salaries (23,345) (351) (9,914) - - - (33,610) Payments for Goods and Services (45,130) (3,595) (8,809) (1,595) (5) - (59,134) Other Income 5,962 - 1,704 791 4,692 - 13,149 Other Expense (865) (1,775) (14) (2) (497) - (3,153) Net Cash Provided by (Used for) Operating Activities (32,476) 3,354 9,530 (1,000) 20,122 - (470) Cash Flows from Non-Capital Financing Activities:

Operating Grants Received from Other Governments 19 - 52 - - - 71 Transfers In 35,228 - - 1,971 8,573 (10,544) 35,228 Transfers Out (14,062) (2,182) - - - 10,544 (5,700) Net Cash Provided by Non-Capital Financing Activities 21,185 (2,182) 52 1,971 8,573 - 29,599 Receipt of Capital Grants 134 - - - - - 134 Proceeds (Loss) from the Sale of Capital Assets (2) - 19 - - - 17 Changes Related to Capital Acquisitions S (12,977) - 2,239 - - - (10,738) Payments of Principal on Bonds Payable S (2,770) - (1,998) (2,048) (6,055) - (12,871) Payments of Principal on Other Long-Term Obligations (66) - - - - - (66) Payments of Interest, Net of Amounts Capitalized S (430) - (5,146) (369) (2,976) - (8,921) Net Cash Used for Capital and Related Financing Activities (16,111) - (4,886) (2,417) (9,031) - (32,445) Cash Flows from Investing Activities:

Proceeds from the Sale of Investments - - 1,322 - 177 - 1,499 Payments of Interest (387) 46 (1) 13 28 - (301) Net Cash Provided by (Used for) Investing Activities (387) 46 1,321 13 205 - 1,198 Net Increase (Decrease) in Cash and Cash Equivalents (27,789) 1,218 6,017 (1,433) 19,869 - (2,118) Cash and Cash Equivalents - October 1 113,797 5,242 33,246 4,167 14,616 - 171,068 Cash and Cash Equivalents - September 30 86,008$ 6,460$ 39,263$ 2,734$ 34,485$ -$ 168,950$ RECONCILIATION OF OPERATING Aquarium Eliminations
INCOME TO NET CASH PROVIDED BY Tideland Tideland Queen of the Increase (USED FOR) OPERATING ACTIVITIES Operating Parking Marin a Mary Pacific (Decrease) Total Operating Income (Loss) (25,731)$ 3,574$ 2,954$ (2,100)$ 12,705$ -$ (8,598)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities:

Depreciation and Amortization Expense 9,989 1,706 6,508 421 3,222 - 21,846 Other Income 5,962 - 1,704 791 - - 8,457 Other Expense (865) (1,775) (14) (2) (497) - (3,153) (Increase) Decrease in Accounts Receivable, Net S (7,572) (41) 115 (605) - - (8,103) (Increase) Decrease in Amounts Due from Other Funds 2,596 900 1,145 150 4,692 - 9,483 Decrease in Amounts Due from Other Governments (135) (806) (50) - - - (991) Increase (Decrease) in Accounts Payable S (4,734) (208) (98) 346 - - (4,694) Increase (Decrease) in Accrued Wages Payable (7,386) (5) (2,958) - - - (10,349) Increase (Decrease) in Amounts Due to Other Funds (4,545) 9 (37) (1) - - (4,574) Increase in Unearned Revenues (69) - 123 - - - 54 Increase (Decrease) in Collections Held in Trust t 14 - 138 - - - 152 Total Adjustments (6,745) (220) 6,576 1,100 7,417 - 8,128 Net Cash Provided by (Used for) Operating Activities (32,476)$ 3,354$ 9,530$ (1,000)$ 20,122$ -$ (470)$

NON-CASH INVESTING, CAPITAL
AND FINANCING ACTIVITIES:

Amortization of Deferred Outflows on Debt Refunding g 44$ -$ -$ -$ (485)$ -$ (441)$ Amortization of Bond Premium (Discount), Net (575) - 278 - 778 - 481 City of Long Beach
Tidelands Operating Fund
Combining Schedule of Cash Flows
For the Fiscal Year Ended September 30, 2021
(In Thousands)
Cash Flows from Capital and Related Financing Activities:

Fleet Fleet Adjustments Total
Fleet Vehicle Debt Fleet an d Fleet Service
Operations Acquisitions Service Othe r Eliminations Fun d ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 2,509$ 44,723 $ 125$ 5,840 $ -$ 53,197$ Receivables:

Accounts Receivable 31 - - - - 31 Due from Other Governments - - - 30 - 30 Due from Other Funds 549 6,880 - - (6,816) 613 Allowance for Receivables (24) - - - - (24) Inventory 3,119 - - - - 3,119 Total Current Assets 6,184 51,603 125 5,870 (6,816) 56,966 Noncurrent Assets:

Capital Assets:

Capital Assets Net of Accumulated Depreciation 67,251 - - - - 67,251 Other NonCurrent Assets - 1,600 - - - 1,600 Total Noncurrent Assets 67,251 1,600 - - - 68,851 Total Assets 73,435 53,203 125 5,870 (6,816) 125,817

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 1,596 - 793 - - 2,389

LIABILITIES
Current Liabilities Payable from Current Assets:

Accounts Payable 1,566 2,901 - 407 - 4,874 Accrued Wages and Benefits 261 45 - - - 306 Accrued Interest Payable - 5 121 - - 126 Due to Other Funds 7,084 47 - - (6,816) 315 Compensated Absences 824 - - - - 824 Environmental Remediation - Current 175 - - - - 175 Obligations Under Capital Leases - Current - 1,637 - - - 1,637 Bonds Payable Due Within One Year - - 1,612 - - 1,612 Total Current Liabilities 9,910 4,635 1,733 407 (6,816) 9,869 Noncurrent Liabilities:

Environmental Remediation 725 - - - - 725 Obligations Under Capital Lease - 4,423 - - - 4,423 Bonds Payable - - 16,340 - - 16,340 Compensated Absences and Accrued Employee Benefits 2,143 - - - - 2,143 OPEB Liability 126 - - - - 126 Net Pension Liability 6,777 - - - - 6,777 Total Noncurrent Liabilities 9,771 4,423 16,340 - - 30,534 Total Liabilities 19,681 9,058 18,073 407 (6,816) 40,403

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 6,534 - - - - 6,534

NET POSITION (DEFICIT)
Net Investment in Capital Assets 67,251 (6,060) (17,952) - - 43,239 Unrestricted (18,435) 50,205 797 5,463 - 38,030 Total Net Position (Deficit) 48,816$ 44,145$ (17,155)$ 5,463$ -$ 81,269$ City of Long Beach
Fleet Services Fund
Combining Schedule of Net Position (Deficit)
September 30, 2021
(In Thousands)
168 169
See accompanying Independent Auditors’ Report
Consolidated
Aquarium Eliminations Tidelands
INCREASE (DECREASE) IN CASH Tideland Tideland Queen of the Increase Operating AND CASH EQUIVALENTS Operating Parking Marin a Mary Pacific (Decrease) Total Cash Flows from Operating Activities:

Long Beach City CouncilMay 3, 2022

Long Beach City Council
May 3, 2022