041823-C-15sr&att.pdf — Long Beach City Council, April 18, 2023 (part 1 of 3)

CITY OF
LONG
April 18, 2023

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
562-5 70-6425
C-15
Receive and file the Annual Comprehensive Financial Report (ACFR) and Separately Issued Financial Statements for the Fiscal Year Ended September 30, 2022. (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 ending September 30, 2022 (FY 22) 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.

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 $4.6 billion as of September 30, 2022. Of this amount, $349.2 million was recorded in governmental activities and $4.3 billion was recorded in enterprise funds such as the Harbor Fund, Water Utility Fund, and Tidelands Operating Fund.

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 (now Long Beach Utilities) 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
April 18, 2023

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 21 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 on March 28, 2023, and by Revenue Management Officer Geraldine Alejo on March 30, 2023.

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<¼L_ ~

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, 2022
Attachment A
City of Long Beach Annual Comprehensive Financial Report

Intentionally Left Blank

Annual
Comprehensive
Financial Report
City of Long Beach, California
For the Fiscal Year Ended
September 30, 2022
Prepared by the Department of Financial Management
Kevin Riper, Director

Intentionally Left Blank
Grants Accounting Officer
Claudia Buenrostro
Accounting Management Officer
Senior Accountant Senior Accountant
Toulip Torn
Administrative Analyst
Sarah Castillo-Wright
Phuong Pham
Accountant
Tiffany PierceElaine Harmon
Accounting Technician
Accounting Technician
Insert Photography by Liezl Estipona
Jennifer Mota
Ruby Carrillo-Quincey
City Controller
Accountant
Mai-Ly Nguyen
Georgia Will
Senior Accountant
Senior Accountant
Reuben Belleza
City of Long Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Prepared by the Department of Financial Management
Stefannie Kodrat
Kevin Riper
Director of Financial Management
Glenda Pakingan
Assistant City Controller
Accountant Accountant
Nazanin Hamidi
Accountant
Kim-Hang Nguyen
Accounting Operations Officer
Angie Tran
Joseph Picardal
Shelby Miller
Senior Accountant Senior Accountant
Khanh Do
Accountant
Michael Carrigg
Alex Powers
Justin Wu
Accountant
Cover Photography by Liezl Estipona
Accounting Technician
Jackie Pham
Accounting Technician
Grants Accounting Officer
Claudia Buenrostro
Accounting Management Officer
Senior Accountant Senior Accountant
Toulip Torn
Administrative Analyst
Sarah Castillo-Wright
Phuong Pham
Accountant
Tiffany PierceElaine Harmon
Accounting Technician
Accounting Technician
Insert Photography by Liezl Estipona
Jennifer Mota
Ruby Carrillo-Quincey
City Controller
Accountant
Mai-Ly Nguyen
Georgia Will
Senior Accountant
Senior Accountant
Reuben Belleza
City of Long Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Prepared by the Department of Financial Management
Stefannie Kodrat
Kevin Riper
Director of Financial Management
Glenda Pakingan
Assistant City Controller
Accountant Accountant
Nazanin Hamidi
Accountant
Kim-Hang Nguyen
Accounting Operations Officer
Angie Tran
Joseph Picardal
Shelby Miller
Senior Accountant Senior Accountant
Khanh Do
Accountant
Michael Carrigg
Alex Powers
Justin Wu
Accountant
Cover Photography by Liezl Estipona
Accounting Technician
Jackie Pham
Accounting Technician

Intentionally Left Blank

i
City of Long Beach
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022

TABLE OF CONTENTS

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

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 – Cash and Investments ............................................................................................... ....................................... 59 Note 4 – R eceivables ......................................................................................................... ............................................ 63 Note 5 – Interfund Receivables, Payables, and Transfers ...................................................................... ........................ 64 Note 6 – Cap ital Assets ...................................................................................................... ............................................ 67 Note 7 – Change in Long-Term Liabilities .................................................................................................................... 69 Note 8 – B onds Payable ...................................................................................................... ........................................... 70 Note 9 – Notes, Loans Payable, and Other Long-Term Obligations .............................................................................. 78 Note 10 – Leases ........................................................................................................... ................................................ 83 Note 11 – Derivative Instruments ............................................................................................ ........................................ 85 Note 12 – Retir ement Programs ................................................................................................. ...................................... 88 Note 13 – Self-Insurance Programs ............................................................................................ ..................................... 93 Note 14 – Governmental Fund Balances and Fund Deficits ...................................................................... ...................... 94 Note 15 – Oil Field Abandonment Liability ................................................................................... ................................. 95 Note 16 – Pollution Remediation Obligations ................................................................................. ................................ 96 Note 17 – Investment in Joint Venture ....................................................................................... ..................................... 97 Note 18 – Deferred Compensation ................................................................................................................................... 97 Note 19 – Commitments and Contingencies ..................................................................................... ............................... 98 Note 20 – Deferred Outflows and Deferred Inflows of Resources ................................................................ ................ 100 Note 21 – Tax Abatements .................................................................................................... ........................................ 102 Note 22 – Subsequent Events ........................................................................................................................................ 104 Required Supplementary Information (Unaudited):

CalPERS Schedules of Changes in the Net Pension Liability – Miscellaneous Plan ............................................................ 106 CalPERS Schedules of Contribut ions – Miscellaneous Plan ..................................................................... ........................... 108 CalPERS Schedules of Changes in the Net Pension Liability – Safety Plan ......................................................................... 110 CalPERS Schedules of Cont ributions – Safety Plan ............................................................................ ................................. 112 Additional Financial Information Section:

Nonmajor Governmental Funds, Combining Balance Sheet ............................................................................................... 115 Nonmajor Governmental Funds, Combining Statement of` Revenu es, Expenditures, and Changes in Fund Balances ....... 116 Nonmajor Special Revenue Fund s, Combining Balance Sheet ............................................................................................. 118

ii
Nonmajor Special Revenue Funds, Combini ng Statement of` Revenues, Expenditures, and Changes in F und Balances …………………………………………………….…… ................................................... 120 Nonmajor Special Revenue Funds, Sc hedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 122 Nonmajor Debt Service F unds, Combining Balance Sheet ................................................................................................... 132 Nonmajor Debt Service Funds, Combining Statement o f` Revenues, Expenditures, and Changes in Fund Balances………133 Nonmajor Debt Service Funds, Sche dule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 134 Nonmajor Capital Projects F unds, Combining Balance Sheet .............................................................................................. 138 Nonmajor Capital Projects Funds, Combining Statement of` Revenues, Expenditures, and Changes in Fund Balan ces…………………………………………………….…… ................................................................................ 139 Nonmajor Capital Projects Funds, Sc hedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 140 Nonmajor Enterprise Funds, Combining Statement of Net Position ..................................................................................... 144 Nonmajor Enterprise Funds, Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................ 145 Nonmajor Enterprise Funds, Comb ining Statement of Cash Flows ...................................................................................... 146 Internal Service Funds, Combining Statement of Net Position (Deficit) ....................................................... ....................... 148 Internal Service Funds, Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) .......... 149 Internal Service Funds, Combin ing Statement of Cash Flows .............................................................................................. 150 Fiduciary Funds Custodial Funds, Combining Statement of Fiduciary Net Position ............................................................ 152 Fiduciary Funds, Custodial Funds, Combining St atement of Changes in Fiduciary Net Position ........................................ 152 Fiduciary Funds, Private Pur pose Trust Funds, Combining Statement of Fiduciary Net Position ........................................ 154 Fiduciary Funds, Private Purpose Tr ust Funds, Combining Statement of Changes in Fiduciary Net Position .................... 154 Other Supplementary Information:

General Fund – Comb ining Balance Sheet ...................................................................................... ..................................... 155 General Fund – Combining Schedule of` Revenues , Expenditures, and Changes in Fund Balances .................................... 156 General Fund – Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) .............................................................................................. ......................................... 157 Measure A, Schedule of Revenues, Expenditu res, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) .............................................................................................. ......................................... 158 General Capital Projects Fund, Sche dule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (B udgetary Basis) .............................................................................................. ......................................... 159 Gas Utility Fund – Combini ng Statement of Net Position ...................................................................... .............................. 162 Gas Utility Fund – Combining Statement of Reve nues, Expenses, and Changes in Fund Net Position................................ 163 Gas Utility Fund – Combini ng Statement of Cash Flows ........................................................................ ............................. 164 Tidelands Operating Fund – Comb ining Statement of Net Position .............................................................. ....................... 166 Tidelands Operating Fund – Combining Statement 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 St atement of Net Position (Deficit) ................................................................................. 169 Fleet Services Fund – Combining Statement 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 Nonmajor Special Revenue Funds, Combini ng Statement of` Revenues, Expenditures, and Changes in F und Balances …………………………………………………….…… ................................................... 120 Nonmajor Special Revenue Funds, Sc hedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 122 Nonmajor Debt Service F unds, Combining Balance Sheet ................................................................................................... 132 Nonmajor Debt Service Funds, Combining Statement o f` Revenues, Expenditures, and Changes in Fund Balances………133 Nonmajor Debt Service Funds, Sche dule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 134 Nonmajor Capital Projects F unds, Combining Balance Sheet .............................................................................................. 138 Nonmajor Capital Projects Funds, Combining Statement of` Revenues, Expenditures, and Changes in Fund Balan ces…………………………………………………….…… ................................................................................ 139 Nonmajor Capital Projects Funds, Sc hedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budge tary Basis) ………………………………………….…… .............................................................. 140 Nonmajor Enterprise Funds, Combining Statement of Net Position ..................................................................................... 144 Nonmajor Enterprise Funds, Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ................ 145 Nonmajor Enterprise Funds, Comb ining Statement of Cash Flows ...................................................................................... 146 Internal Service Funds, Combining Statement of Net Position (Deficit) ....................................................... ....................... 148 Internal Service Funds, Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) .......... 149 Internal Service Funds, Combin ing Statement of Cash Flows .............................................................................................. 150 Fiduciary Funds Custodial Funds, Combining Statement of Fiduciary Net Position ............................................................ 152 Fiduciary Funds, Custodial Funds, Combining St atement of Changes in Fiduciary Net Position ........................................ 152 Fiduciary Funds, Private Pur pose Trust Funds, Combining Statement of Fiduciary Net Position ........................................ 154 Fiduciary Funds, Private Purpose Tr ust Funds, Combining Statement of Changes in Fiduciary Net Position .................... 154 Other Supplementary Information:

INTRODUCTORY

SECTION
BLANK
iii
March 27, 2023
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, 20 22. This report was prepared in accordance with 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 misstatement. 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 the information presented. To provide a reasonable basis for making these representations, the City’s management has established a comprehensive 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 follows the independent auditors ’ report and provides a narrative overview and analysis of the basic financial statements. The MD&A was designed to complement this letter of transmittal 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. Though legally separate entities, blended component units are, 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, internal controls, and compliance with legal requirements, with a special emphasis on those involving federal awards. The City’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 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 Mayor has 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.

Office of the City Manager
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6711 FAX (562) 570-7650

The City uses encumbrance accounting 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 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, City Prosecutor and City Attorney are elected at -large and serve four-year terms, as well . The City Council appoints the City Clerk and 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 diverse economic base including international trade, oil, aerospace, aviation, healthcare, education, and tourism.

Many award- winning facilities and services are available to Long Beach resident s 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 2022, the Long Beach Police Department continued to partner with the c ommunity to build positive relationships and prevent crime in the community. This partnership was fostered by the Police Department reaching out to over 4,500 community members and visiting 520 business during “ Neighborhood Walk” events. Together, the Long Beach Police Department and Long Beach communities have lowered the reported shooting incidents by 13% and murders by 6%. The Long Beach Police Department administered a $25.5 million Homeland Security Award for critical training and equipment and has launched a Street Racing Takeovers Task Force. The Long Beach Fire Department continued to serve the City by responding to 80,000 calls during 2022 and sending experienced firefighters to help quell 10 wildfires plaguing the state of California.

Long Beach’s Public Safety staff are not alone in making life better for the City’s residents. T he City’s fleet has been recognized as a Top 20 Fleet in Government Fleet Magazine competition for the s eventh consecutive year and was ranked second best Green Fleet in the country by the National Association of Fleet Administrators. The Water Department remains a low cost provider of clean and great tasting water, performing over 61,000 water quality tests during 2022 to ensure the drinking water meets or exceeds all regulatory standards . The Long Beach Airport continues to serve the community by providing jobs and welcoming 3.2 million passenger s to Long Beach. It was voted one of the Top Ten Airports in the nation and has received awards for both technical expertise and operational efficiencies. The successes in Long Beach kept happening all the way through to the very end of the year 2022. The Long Beach Partners of Parks won a nationwide competition to win a conservation grant of $22,000 and a day of “Fishing With Santa”. Santa’s day got even better when the California Fish and Game restocked the pond with 700 pounds of trout.

Long Beach is making continuous improvement in livability throughout the community with its award - winning inclusion, increased resources for streets and infrastructure, awards for technology, and more.

Long Beach continues to demonstrate the City’s commitment to serving all the diverse members of the community. The City’s Racial Equity 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 Long 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 2 miles of bike lanes and increasing the bike share to over 1,400 bikes located at 96 hubs throughout the City. Safety barriers separate street and bike lanes, increasing safety and comfort for both riders and motorists . For the twelfth consecutive year, Long Beach was recognized as a Top 10 Digital City and was again awarded the highest honor in this ranking as the Top Digital City in the country by the Center for Digital Government. The City launched an on-line interactive map, available to the public, to provide information about street conditions, and several ‘Dashboard’ applications for citizens and stakeholders to find authoritative information about their topic of interest. Examples are: COVID 19, Lon g Beach Recovery Act, and self -service portals for utility customers.
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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 situations. 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. Most recently, the City adopted an emergency proclamation on homelessness that will allow the City to mobilize local resources, coordinate interagency response, accelerate procurement of housing units and seek assistance from the state and federal government.

The Police Department’s Homeless Outreach and Mental Evaluation (HOME) Detail made over 7, 500 contacts offering services to persons experiencing homelessness, resulting in temporary housing for 2 71 and permanent housing for 39 individuals. The City served an average of 3,800 participants experiencing homelessness each month at the Multi -Service Center and provided showers, hygiene services and linkages to comprehensive services and housing. The City received 582 Housing Authority vouchers for people experiencing homelessness or at-risk of homelessness allowing 300 people to enjoy the security of permanent housing. The City secured $1.3 million From the Conrad Hilton Foundation for the Unsheltered Homeless Services program to provide mental health, substance abuse and counseling for people currently experiencing homelessness and support for those moving to permanent housing. The City’s Clean Team conducted 1,400 homeless encampment clean- ups and fifty-two ‘Deep Cleaning’ events throughout the City, and collected 2,000 tons of litter and illegally dumped items from City and p rivate properties and alleyways. During the California Coastal Cleanup Day, 1,200 volunteers picked up and properly disposed of over 3,000 pounds of trash improving the beauty and environmental health of Long Beach’s co astal areas. The City swept over 150,000 miles of street surfaces, filled over 40,000 potholes, and collected 380,000 tons of trash which was processed by the City’s waste- to-energy plant, helping to generate clean power and preventing over 10,000 tons of recyclable materials from being disposed in landfills.

The Port of Long Beach continues to be a world class 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 adaptability of the local economy to maximize opportunities in today’s global world economy. Local, national, and international businesses k eep Long Beach growing and adapting to meet the constantly changing needs of today’s modern life. The City is enjoying the ongoing benefits of the television and film industry in 2022. Long Beach has been selected for the filming of many television shows like “NCIS:LA” and “Hacks” and, since the Queen Mary became available, feature films such as “The Muppets Mayhem,” and Netflix’ series titled “Griselda.” As the City’s business community grows, the need for housing of all types also grows. To accommodate this need, many diverse new residential projects have been approved for construction. In addition to the improvements that can be easily seen, equally important to the safety of residents and visitors were the 50 lane-miles of residential streets rehabilitated, 400 new ADA ramps installed and over 3,000 traffic and street name signs installed by City staff and contractors.

The City is committed to protecting the environment and the City’s resources. The Port continues to actively manage pollution generated by vessels stopping in Long Beach. After the success of a pilot program, 41 hybrid police Interceptor vehicles were placed in service allowing for a 41% reduction in fuel use, and lower carbon emissions. 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 replaced, they are converted to compressed natural gas and electric power. Transitioning to renewable energy sources will allow these services to continue, but with a lower cost to the environment. Improvement and clean ing of bus stops, updating crosswalks and coordinating the timing of traffic signals have provided a safer and more secure environment for bus riders, pedestrians, and motorists.

The City continues to use innovation to maintain and improve services. The 202 2 budget included innovative changes throughout the City’s organization. Some of these improvements included: outreach focused on meeting the specialized needs of persons experiencing homelessness, including diverting 9-1- 1 calls related to Homelessness to a Restorative Engagement to Achieve Collective Health (REACH) team; vi

surveying 600 miles of natural gas pipelines for leaks ; maintaining remote services while welcoming 588,000 visitors to the library system ; and achieving a 60% increase in adoptions in early 2022 at Long Beach Animal Care Services . The Long Beach Airport worked to continue the planned Terminal Improvements, allowing both residents and visitors to feel safe and comfortable during their aviation journey to Long Beach. Long Beach has one of the first PPE (Personal Protective Equipment) vending machines in the City, provides a COVID-19 testing site for travelers , new self- check in kiosks, and a new baggage claim area. Long Beach Airport assured that no residents were exposed to improper noise levels and informed the community about military aircrafts visits.

The 2022 year included many improvements to the services and facilities available in Long Beach. The City approved thirteen residential and mixed-use projects, four affordable housing projects and supported a citywide Enhanced Density Bonus Ordinance which offers incentives for the development of mixed- income, multifamily housing citywide. The City continues to search for ways to improve affordable housing securing $10.2 million in funding from the California Department of Housing and Community Development and $69.8 million in federal and state funding to support the Long Beach Emergency Rental Assistance programs. The City welcomed a new park during 2022, adding a revitalized Lincoln Park to the Long Beach cityscape. The park will serves as a site for community engagement and a respite for visitors. The Parks, Recreation and Marine Department continues to provide healthy meal s to children through the Summer Youth Program and interactive physical activities and a Teen Academy during the spring and summer .

Outreach and education events from all departments will continue to bring quality-of-life improvements to Long Beach residents.

The Challenge of and Response to the COVID, Mpox and Baby Formula Challenges 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 addressing the pandemic and mitigating the impact on the city, its residents, and its businesses. On March 11, 2020, the World Health Organization declared 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 those businesses impacted by the pandemic, deferrals of lease payments to the C ity by impacted tenants, as well as grants and other actions (often supported by federal financial assistance) to assist businesses and residents. A moratorium on evictions was enacted to provide relief to residential tenants facing hardships, temporary relief from parking penalties, and financing options for business and residents having difficulty paying these costs.

During 2022, two new health challenges came to Long Beach when the US experienced a surge of M pox cases and a National Baby Formulas shortage. The City’s experience with COVID-19 allowed a quick and efficient response, administering more than 8,000 M pox vaccines. The City was also able to respond quickly during the infant formula shortage, distributing nearly 1,000 cans of formula to infants nine months and younger at no cost.

Long Beach will continue to meet these health challenges 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 programmed a total of $292.1 million in federal, state, and City funding for this purpose. LBRA programs fall under three categories. The Economic Recovery programs focus on residents and businesses 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 lasting 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 restoration 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 strategies to address projected future budget shortfalls. LBRA programs will continue to evolve and grow as additional funding sources and recovery needs are identified.
vii
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 fifteenth year in a row, the Government Finance Officers Association (GFOA) of the United States and Canada has awarded the Certificate of Achievement for Excellence in Financial Reporting to the City for its A nnual Comprehensive F inancial Report for the fiscal year ended September 30, 20 21. To be awarded a Certificate of Achievement, a government must publish an easy to read and efficiently organized ACFR. This report must satisfy both Generally Accepted Accounting Principles (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

viii

Directory of City Officials
As of September 30, 2022

Dr. Robert Garcia
Mayor

Rex Richardson
Vice Mayor
9th District

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

Suzie Price Daryl Supernaw
Councilmember Councilmember
3 rd District 4th District
Stacy Mungo Dr. 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 B. Modica

Assistant City Manager
Linda F. Tatum

Acting Director of Development Services Christopher Koontz Acting Director of Economic Development Johnny Vallejo Director of Energy Resources Robert Dowell
Director of Financial Management Kevin Riper
Director of Health and Human Services Kelly Colopy
Director of Human Resources Joseph Ambrosini
Director of Library Services Cathy De Leon
Director of the Long Beach Airport Cynthia Guidry
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 Communications Reginald Harrison Fire Chief Xavier Espino
Chief of Police Wally Hebeish
ix

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 Dr. Suely Saro Roberto Uranga Al Austin Vice Mayor Rex Richardson

ORGANIZATIONAL CHART

CITY OF LONG BEACH, CALIFORNIA
As of September 30, 2022
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
Communications
Human
Resources
Technology &
Innovation
City Clerk
City Auditor
City
Prosecutor
Water
Department
Mayor and
City Council
Civil Service
Commission
Civil Service
xi
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, 2021
Executive Director/CEO
xii

Intentionally Left Blank

FINANCIAL

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

Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, 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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, based on our audit and the report of the other auditors, the accompanying 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, as of September 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S. generally accepted accounting principles.

We did not audit the financial statements of Long Beach Public Transportation Company (the Company), which represents 100% of the discretely presented component unit as of and for the year ended September 30, 2022.

Those statements were audited by other auditors whose report has been furnished to us, and our opinions, insofar as they relate to the amounts included for the Company, are based solely on the report of the other auditors.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 2, in 2022, the City adopted Governmental Accounting Standards Board Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

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

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

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

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

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 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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. 3 3
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying supplementary information identified in the table of contents as additional financial information section and other supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2023 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 control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Los Angeles, California
March 27, 2023

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, 2022

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, 2022. 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 $4.6 billion. Of this amount, $4.0 billion represents net investment in capital assets, and $879.4 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 $267.6 million.  At the close of the fiscal year, the City’s governmental funds reported combined fund balances of $549.4 million, an increase of $58.4 million or 11.9 percent, from the prior fiscal year end. Of these balances, $4.2 million are nonspendable, $254.5 million are restricted, $78.9 million are committed, $237.0 million are assigned, and a deficit $25.3 million is unassigned.  The fund balance of the General Fund was $230.8 million. This represents an increase of $58.2 million or 33.6 percent from the prior fiscal year. Of this balance, $1.6 million is nonspendable, $2.9 million is restricted, $77.7 million is committed, and $148.6 million is assigned.

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, 2022

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, 2022

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 to End Homelessness, 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, 2022

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, 2022, the City’s a ssets and deferred outflows exceeded liabilities and deferred inflows by $4.6 billion, a decrease of $1.2 billion from the prior year.

Net investment in capital assets accounted for $4.0 billion 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 de preciation, 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 decreased by $1.2 billion, or 22.7 percent, from the prior fiscal year. The slight increase of $4.1 milli on in governmental activities is mostly attributable to payment of related debt. The decrease of $1.2 billion in business-type activities is primarily due to the Harbor handing over ownership of the Long Beach International Gateway Bridge to the California Department of Transportation (Caltrans) for a capital asset cost of $1.5 billion.

Restricted net position amounted to $879.4 million. 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 $267.6 million is th e net of the $625.0 million governmental activities deficit unrestricted net position (mostly related to pension liabilities) and the $357.4 million business-type unrestricted net position.

9 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

2022 2021 2022 2021 2022 2021
Assets:

Current and Other Assets 1,401,494$ 1,175,621 $ 2,335,477 $ 2,423,230$ 3,736,971$ 3,598,851$ Capital Assets 1,024,822 1,051,221 5,090,661 6,492,058 6,115,483 7,543,279 Total Assets 2,426,316 2,226,842 7,426,138 8,915,288 9,852,454 11,142,130 Deferred Outflows of Resources 357,455 99,311 121,291 55,762 478,746 155,073 Outflows of Resources 2,783,771 2,326,153 7,547,429 8,971,050 10,331,200 11,297,203 Liabilities:

Current Liabilities 292,937 287,315 325,373 468,415 618,310 755,730 Noncurrent Liabilities, Net 1,809,699 1,249,474 2,505,917 2,376,008 4,315,616 3,625,482 Total Liabilities 2,102,636 1,536,789 2,831,290 2,844,423 4,933,926 4,381,212 Deferred Inflows of Resources 331,886 517,378 449,119 585,498 781,005 1,102,876 2,434,522 2,054,167 3,280,409 3,429,921 5,714,931 5,484,088 Net Position:
456,247 452,155 3,548,274 4,727,066 4,004,521 5,179,221 Restricted 517,994 475,699 361,377 326,665 879,371 802,364 Unrestricted (624,992) (655,868) 357,369 487,398 (267,623) (168,470) Total Net Position 349,249$ 271,986$ 4,267,020$ 5,541,129$ 4,616,269$ 5,813,115$ Net Investment in Capital Assets
Total Assets and Deferred
Total Liabilities and Deferred
Inflows of Resources
Net Position
Totals
September 30, 2022 and 2021
Governmental
Activities
(In Thousands)
Business-type
Activities

Key Changes in the Statement of Net Position:

The City’s current and other assets increased $1 38.1 million when compared to the prior fiscal year.

Governmental activities increased $225.9 million, prima rily due to the implementation of a new accounting standard that resulted in the recognition of lease receivables in the amount of $146.4 million, and increased cash balances of $58.1 million as a result of higher sales tax, property tax, and federal grant revenues. There was also increased receivables from property tax and other revenues. Business-type activities decreased $87.8 million mostly due to the recognition of unrealized losses from changes in fair value of the City’s investment pool as a result of rising interest rates.

Citywide, capital assets decreased $1.4 billion or 1 8.9 percent. Governmental activities reported a slight decrease of $26.4 million and is mostly attributed to depreciation expense. Business-type activities decreased $1.4 billion mostly due to the transfer of the Long Beach International Gateway Bridge to Caltrans.

Deferred outflows of resources increased $323.7 million. Governmental activities deferred outflows increased $258.1 million and business-type activitie s increased $65.5 million. The increase is mostly attributable to difference between actual and expected investment returns of the City’s pension plans.

Current liabilities decreased $137.4 million. Governmental activities increased $5.6 million and business- type activities decreased $143.0 million. The increase in governmental activities resulted from increased 10 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

accounts payable at fiscal year-end, offset by a decrease 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 decreased liabilities from the refunding of the 2018A and 2020C Notes.

Overall, noncurrent liabilities increased $690.1 million or 19.0 percent City-wide. Governmental activities increased $560.2 million and Business-type activities increased $129.9 million, the change was mostly attributed to a higher net pension liability as a re sult of the CalPERS pension plans reporting a negative

6.1% net return on investments.

In total, deferred inflows of resources decreas ed $321.9 million. Governmental activities decreased $185.5 million due to a decrease of $331.2 million in the difference between actual and expected investment returns by CalPERS for the City’s pension plans, offset by an increase of $144.3 million related to the implementation of a new GASB standard on accounting for leases. Business-type activities decreased $136.4 million due to a decrease of $118.1 million in the difference between actual and expected investment returns by CalPERS and a decrease of $148.9 million in the fair value of the gas commodity swap, offset by an increase of $127.2 million in accounting for leases.

11 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Analysis of Changes in Net Position
The following table presents condensed information from the statement of activities for the fiscal years 2022 and 2021. 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. 2022 2021 2022 2021 2022 2021
Revenues:

Program Revenues:

Charges for Services 168,054$ 150,848 $ 1,256,767$ 1,031,852 $ 1,424,821 $ 1,182,700 $ Operating Grants and Contributions 302,613 352,336 219 160 302,832 352,496 Capital Grants and Contributions 86,781 76,033 131,479 40,099 218,260 116,132 General Revenues:

Taxes:

Property 234,386 225,820 - - 234,386 225,820 Sales 174,257 150,887 - - 174,257 150,887 Utility Users 40,349 38,546 - - 40,349 38,546 56,868 40,098 - - 56,868 40,098 Franchise Taxes 20,813 23,734 - - 20,813 23,734 1,495 3,496 11,461 1,469 12,956 4,965 Total Revenues 1,085,616 1,061,798 1,399,926 1,073,580 2,485,542 2,135,378 Expenses:

Legislative and Legal 16,722 13,058 - - 16,722 13,058 General Government 41,335 36,564 - - 41,335 36,564 Public Safety 407,420 311,933 - - 407,420 311,933 Public Health 101,438 60,016 - - 101,438 60,016 Community and Cultural 259,577 217,381 - - 259,577 217,381 Public Works 170,385 163,203 - - 170,385 163,203 Oil Operations 6,830 3,679 - - 6,830 3,679 Interest on Long-Term Debt 18,253 19,781 - - 18,253 19,781 Gas Utility - - 128,684 83,900 128,684 83,900 Water Utility - - 136,550 93,075 136,550 93,075 Tidelands Operating - - 146,178 110,419 146,178 110,419 Tideland Oil 164,564 84,271 164,564 84,271 Harbor - - 1,871,078 336,106 1,871,078 336,106 Non-major Enterprise Funds - - 213,374 170,052 213,374 170,052 Total Expenses 1,021,960 825,615 2,660,428 877,823 3,682,388 1,703,438 Increase (Decrease) in Net
Position before Transfers 63,656 236,183 (1,260,502) 195,757 (1,196,846) 431,940 Capital Assets Transfers - - - - - - Transfers 13,607 (5,284) (13,607) 5,284 - - Total Change in Net Position 77,263 230,899 (1,274,109) 201,041 (1,196,846) 431,940 Net Position, Beginning of Year 271,986 41,087 5,541,129 5,340,088 5,813,115 5,381,175 Net Position, End of Year 349,249$ 271,986 $ 4,267,020$ 5,541,129 $ 4,616,269 $ 5,813,115 $ Governmental
Changes in Net Position
September 30, 2022 and 2021
(In Thousands)
TotalsActivities Activities
Business-type
Unrestricted Investment Earnings
Other

12 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Governmental activities
Governmental activities net position increased $77.3 m illion when compared to the Fiscal Year 2021 financial report.

Total revenues for governmental activities (excluding tran sfers) increased $23.8 million, or 2.2 percent, with the majority of the increase reported in sales, property and other taxes. Total governmental program expenses increased $196.3 million, or 23.8 percent, mostly due to higher pension expenses resulting from lower investment returns of the CalPERS pension plan s that reported a negative 6.1% net return on investments. Other 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 65.6 percent of revenues. For fiscal year 2022, operating grants and contributions decreased $49.7 million primarily due to the recognition of less federal ARPA revenue in the current year and lower FEMA federal awards as a result of decreased pandemic costs. Property tax revenues increased $8.6 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. Sa les tax increased $23.4 million due to strong performance in the general consumer goods and restaurants and hotels categories. There was also a notable increase generated from the unanticipated price increases to fuel and automobiles.

13 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Governmental activities expenses, excluding transfers, increased $196.3 million or 23.8 percent. The most significant changes were as follows:

 Public safety expenses reported the largest increase of $95.5 million, primarily due to higher personnel expenses from increased pension costs due to lower investment returns of the CalPERS pension plans, which also resulted in a significant increase in the City’s net pension liability.  An increase of $41.4 million in Public Health due to higher personnel expenses from increased pension costs and increased program expenses through the Long Beach Recovery Act and federal and state grants.
 An increase of $42.2 million in expenses was also noted in Community and Cultural mostly due to increased grant funding for the Emergency Rental Assistance Program (ERAP) 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, 2022
Expenditures
Revenues
14 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Business-type activities

The City’s major enterprise funds include Gas Utility, Water Utility, Tidelands Operating, Tideland Oil Revenue, and Harbor. The non-major enterprise funds (“other proprietary funds”) comprise Sewer, Airport, Solid Waste Management, Towing, Subsidence, and Development Services.

15 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Business-type activities decreased net position by $1.3 billion. 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 $4.5 million, an increase of $5.0 million from the prior fiscal year. The increase was due to higher transmission and commodity revenues due to increased prices for natural gas and continued strong demand.  Water Utility net position at fiscal year-end was $339.6 million, a $8.5 million decrease from the prior fiscal year. The Water Utility realized higher charges for service revenues than in the prior year, that were offset by higher personnel expenses related to increased pension costs as a result of lower investment returns of the CalPERS pension plans.  Tidelands Operating Fund net position increased $0.5 million, totaling $292.6 million at fiscal year-end. Tidelands transfers in from Tidelands Oil and Harbor amounted to $57.8 million, an increase of $23.6 million from the prior year. Ha rbor transferred $24.0 million, consistent with City Charter mandated revenue sharing; and Tideland Oil Revenue transferred $33.8 million due to higher oil prices of $94 per barrel to be used to fund tidelands operations and capital improvements. During the fiscal year, the Convention Center operated at a loss resulting in the fund reporting additional expenses of $5.7 million to cover the losses. Also reported were higher costs for the Queen Mary in the amount of $6.6 million for critical repairs and maintenance, and property and legal costs. Personnel expenses were also higher by $11.5 million mostly due to lower investment returns of the CalPERS pension plans that led to an increase in pension costs and the net pension liability.
 Tideland Oil Revenue Fund net position decreased $8.0 million primarily due to increased expenses resulting from the oil field abandonment liability.  Harbor net position decreased $1.3 billion. The change was primarily due to the ownership transfer of the Long Beach International Gateway Bridget to Caltrans (as a component of the state highway system) for a capital asset cost of $1.5 billion. This amount was slightly offset by higher operating revenues of $44.9 million due to the delivery of 80 additional acres at the Middle Harbor terminal (Pier E) and higher rental property revenue due to continued strong demand for leased land for container storage. Also reported was an increase of $75.7 million in grant revenues mostly due to reimbursements related to the Gerald Desmond Bridge Replacement Project.  Overall, total net position for non-major business-type activities increased $29.5 million, to $565.6 million at fiscal year-end. Significant changes in the non-major funds included increased net position in the Airport Fund by $25.4 million due to th e receipt of direct federal grant awards through ARPA and higher airline and parking revenues, reflecting increasing passenger activity and the travel industry moving past the pandemic. The Development Services Fund also reported higher revenues for plan check and building permits from increased development activity.

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, 2022, the City’s governmental funds reported combined fund balances of $549.4 million, an increase of $58.4 million from the prior year. Further information can be found in Note 14 – Governmental Fund Balances and Fund Deficits.
16 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Governmental fund assets increased $181.5 million, or 17 .5 percent, from the prior fiscal year. Pooled and Non-Pooled Cash and Investments increased $59.2 million mostly due to increased federal and state grant revenues as a result of the pandemic, including American Rescue Plan Act (ARPA) funding. Net Receivables, including Noncurrent Receivables, increased $115.4 million. The increase was due to the implementation of a new GASB standard that requires the City report lease receivables related to renting capital assets such as land, buildings and equipment to other entities.

Governmental fund liabilities decreased $35.3 million, or 16.1 percent. Due to Other Funds decreased $50.4 million mostly due to the General Fund owing the Water Utility Fund $30.8 million in the prior year for the court order ruling against the City on the Measure M litigation. Unearned revenues decreased $10.5 million due to decreased advances from grantors to be used in the subsequent fiscal period.

Of the $549.4 million total fund balances, $254.5 million or 46.3 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 $32.1 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 $7.8 million. Restrictions include:
 Asset seizure funds from federal and state court forfeitures are restricted to support the Police Department. These funds amounted to $2.9 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, 2022, Prop H funds for police and fire amounted to $171 thousand.  Impact fees restricted for public safety amounted to $4.7 million.

Restricted for Community and Cultural
Amounts restricted for community and cultural ac tivities totaled $93.7 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 $30.3 million.  Former Redevelopment Agency capital projects fund balance restricted for the purposes of winding down the activities of the Agency amounted to $9.9 million.  The Belmont Shore Parking Meter fund has restricted $199 thousand as the first pledge of revenue for special assessment debt that benefited the Belmont Shore area.  Fund balance restricted within the Community Development Grant fund amounted to $8.7 million.  Fund balance restricted within the Other Special Revenue fund for economic development totaled $11.1 million at the close of the fiscal year.
 Impact fees restricted for community development amounted to $7.6 million.

Restricted for Public Works
As of September 30, 2022, fund balance restricted for public works amounted to $120.7 million. The most significant restrictions include:
 $14.8 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.
17 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

 $23.1 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.  $1.7 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.  $14.6 million pursuant to County Measure M. County Measure M is a one-half cent sales tax approved by Los Angeles County voters and is restricted for transportation purposes.  $10.5 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.  $13.5 million is restricted for Measure W, a special tax for parcels located in the Los Angeles County Flood Control District, to pay for infrastructure and programs to capture, treat and recycle rainwater.
 $11.7 million is restricted related to State gas tax funding. Gas tax funding is restricted to constructing and maintenance of streets and sidewalks.

The General Fund reported a year-end fund balance of $230.8 million. The City’s operating reserve, at $15.7 million, is 2.5% of normal operating expenditures, which is within the policy required range of 2 to 7 percent. The Emergency Reserve, at $47.8 million, is 7.6 percent of normal operating expenditures and is below the target level of 10 percent.

The General Capital Projects Fund reported a year-end fund balance of $201.1 million, which represented an increase of $43.0 million in fund balance. The change in fund balance was primarily due to higher grant revenues, Measure W, 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 $30.3 million, which represented an increase of $7.0 million in fund balance. The change in fund balance was primarily due 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 Year Percentage Fiscal Year Percentage Other Financing Sources 2021-22 of Total 2020-21 of Total Taxes 460,859$ 65.8% 417,758$ 55.9%
Franchise Fees 20,813 3.0% 23,734 3.2% Licenses and Permits 42,376 6.0% 36,550 4.9% Fines and Forfeitures 17,670 2.5% 14,395 1.9% Use of Money and Property 24,867 3.5% 30,001 4.0% From Other Agencies 7,883 1.1% 8,482 1.1% Charges for services 46,217 6.6% 39,646 5.3% Other Revenue 1,386 0.2% 5,391 0.7% Other Financing Sources 78,818 11.3% 171,382 22.9% 700,889$ 100% 747,339$ 100%
General Fund Revenues and Other Financing Sources
Fiscal Years Ending September 30, 2022 and 2021
(In Thousands)

18 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

General Fund revenues and other financing sources decreased $46.5 million, or 6.2 percent, from the prior fiscal year. Significant year-over-year changes include:
 Taxes increased $43.1 million, or 10.3 percent reflecting an increase from the prior year in various tax revenues. Sales and Use Tax was higher than the prior year by $22.7 million due to continued growth in the City’s share of the countywide pool following the 2019 implementation of AB 147 and strong performance in the general consumer goods and restaurants and hotels categories.

There was also a notable increase generated from the unanticipated price increases to fuel and automobiles. Transient Occupancy Tax (TOT) also reported an increase of $9.4 million when compared to the prior year. TOT revenue has shown significant improvement and now exceeds the average revenue reported in pre-pandemic periods. Property tax revenue increased $4.5 million mostly due to citywide valuation increases from new development and improvements, as well as prior year adjustments such as supplemental tax revenues that are based on the change in valuation following the completion of a property sale, transfer of ownership, or new construction.  Licenses and permits increased by $5.8 million, mostly attributed to emergency fees being higher due to increased activity in fiscal year 2022, as well as the impact of efficiencies and improvements to billing processes.
 Charges for Services increased by $6.6 million due to increased revenues from special events, reflecting an increase in both the number and scale of events, improving since fiscal year 2021, which had been impacted by COVID-19 pandemic related restrictions.  Use of Money and Property decreased by $5.1 million due to a decrease in interest earnings of $10.0 million due to the recognition of unrealized losses from changes in fair value of the City’s investment pool, offset by an increase of $6.3 million in oil revenues.  Revenues derived from other financing sources decreased $92.6 million from the prior year. The majority of the decrease is due to transfers out of General Grants to the General Fund being lower in fiscal year 2022 as a result of the City’s approach to use of ARPA funding. The City followed the ARPA regulations that allow use of funding to provide and maintain current government services, including parks and recreation and public safety services, up to the amount of the City’s calculated revenue loss due to the pandemic. There was also a transfer in to the General Fund from the Health Grants Fund in the prior year related to the purchase of property for Homeless Services Housing that did not reoccur in fiscal year 2022.

Ta xe s

65.8%
Franchise Fees

3.0%
Licenses and
Permits

6.0% Fines and
Forfeitures

2.5%
Use of Money
and Property

3.5%
From Other
Agencies

1.1%
Charges for
Services

6.6%
Other
Revenue

0.2%
Other
Financing
Sources

11.3%
Gene ral Fund Reve nue s and Othe r Financing Source s
For the Year Ended September 30, 2022

19 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

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

Expenditures and Fiscal Year Percentage Fiscal Year Percentage Other Financing Uses 2021-22 of Total 2020-21 of Total
Legislative and Legal 17,124$ 2.7% 16,537$ 2.3% General Government 35,007 5.4% 34,860 4.9% Public Safety 392,868 61.1% 408,803 57.6% Public Health 15,051 2.3% 19,885 2.8% Community and Cultural 57,045 8.9% 53,645 7.5% Public Works 61,622 9.6% 58,535 8.3% Oil Operations 2,979 0.5% 2,446 0.3% Capital Improvements 116 0.1% 24,765 3.5% Debt Service 1,473 0.2% 1,487 0.2% Other Financing Uses 59,435 9.2% 89,625 12.6% 642,720$ 100% 710,588$ 100%
General Fund Expenditures and Other Financing Uses
Fiscal Years Ending September 30, 2022 and 2021
(In Thousands)

Expenditures, including other financing uses, decreased $67.9 million, or 9.6 percent, from the prior year.

Significant changes include:
 A decrease of $15.9 million in Public Safety was due to savings from position vacancies in the Fire and Police departments, as a result of increased separations, retirements, and hiring challenges during the Great Resignation.
 The Public Works department reported an increase of $3.1 million due to more investment in infrastructure repairs and maintenance.
 Capital improvements reported a decrease of $24.6 million due to land and property purchases that occurred in the prior year for Homeless Services Housing and Fire Station 9.  A decrease in Transfers Out was also reported in the amount of $30.2 million, due to the transfer out of $30.8 million in the prior year 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.

20 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Proprietary Funds Financial Analysis

Enterprise Funds
The combined net position of enterprise funds totaled $4.3 billion at the close of the fiscal year. Total unrestricted net position amounted to $390.0 million before the allocation of internal service fund activities. The total decrease in net position was $1.3 billion before the internal service fund activities allocation to enterprise funds. Other factors affecti ng 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 $339.6 million, a decrease of $8.5 million from the prior year. The decrease was attributed to the Water Utility refunding $21.0 million in Measure M funds back to ratepayers, offset by a reduction of about $9.0 million in transfers out to the General Fund that will no longer occur as a result of the court ruling on Measure M. Tidelands Operating reported net position of $292.6 million, an increase of $0.5 million from the prior year. The Harbor reported net position of $3.2 billion, a decrease of $1.3 billion, primarily due to the ownership transfer of the Long Beach International Gateway Bridge to Caltrans. The Gas Utility reported a deficit net position of $4.5 million and the Tideland Oil Revenue reported a deficit net position of $63.6 million. Other Proprietary funds reported net position of $565.6 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, 2022, internal service funds reported a net position of $34.5 million, a decrease of $14.6 million. There were deficit net positions reported in the Workers’ Compensation Insurance Fund and General Liability Insurance Fund, which reported deficit balances of $103.3 million and $46.4 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 the long-term, current and future billing rates are sufficient to remediate ev entually 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 fund reported $57.6 million and the General Services fund reported $14.6 million in net position, mostly attributed to the net investment in capital assets. For the Fleet Services fund, net position was $88.6 million, mostly from the net investment in capital assets and cash availa ble for future replacement of the City’s fleet of vehicles and equipment.

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 to End Homelessness 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 2022 final budget for estimated revenues and expenditure appropriations reflected a net increase to budgeted fund balance of $107.3 million. The change 21 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

between original and final budgeted amounts was $65.5 million and consisted of additional appropriation for expenditures and other financing uses of $61.4 million and a decrease in revenue and other financing sources of $4.2 million.

Significant changes in the appropriations budget include:
 An increase of $51.7 million to fund Long Beach Recovery Act programs focused on public health and economic recovery for residents and businesses in the community, and for the City to replace lost revenues during the pandemic. This was made possible due to the use of federal ARPA funds paying for parks and recreation and police services that would normally be funded by the General Fund.
 An increase of $4.0 million in the Police Department for the Long Beach Safety Recovery Plan for violent crime reduction and community engagement activities.

The actual budgetary basis results of the General Fund as compared to the final budget reflect a net positive variance of $163.5 million. This consists of favorable variances in both revenues and other financing sources of $102.2 million and expenditures and other financing uses of $61.3 million.

The General Fund revenues and other financing sources positive budget to actual variance of $102.2 million is mostly due to increased property, sales tax, and transfers in from the General Grants fund as a result of the federal ARPA award funding parks and recreation and police costs normally budgeted and paid by the General Fund.

General Fund expenditures and other financing uses reflect a positive budget to actual variance of $61.3 million primarily due to lower personnel costs than anticipated in the Police Department and lower operational costs in Public Works, Public Health and Financial Management.

Capital Assets and Debt Administration
Capital Assets: As of September 30, 2022, the City’s capital assets held by governmental and business- type activities amounted to $6.1 billion (net of accumulated depreciation). There was an overall decrease of $1.4 billion in the City’s capital assets over the prior fiscal year. 2022 2021 2022 2021 2022 2021
Land 223,449$ 225,112$ 1,434,082$ 1,376,585$ 1,657,531 $ 1,601,697$ 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 3,442 3,442 Construction in Progress 74,519 62,905 574,926 602,338 649,445 665,243 Buildings 418,620 433,171 1,910,442 2,007,211 2,329,062 2,440,382 Improvements Other than Buildings 61,359 66,600 328,070 331,238 389,429 397,838 Infrastructure 55,870 64,796 525,363 1,859,235 581,233 1,924,031 Machinery and Equipment 35,799 40,165 23,886 30,539 59,685 70,704 Vehicles and Aircrafts 57,069 58,581 81,712 72,583 138,781 131,164 Software and Patents 16,797 18,551 5,394 5,543 22,191 24,094 1,024,822$ 1,051,221 $ 5,090,661$ 6,492,058$ 6,115,483 $ 7,543,279$ Capital Assets, Net of Depreciation
September 30, 2022 and 2021
(In Thousands)
Activities
Governmental Business-type
Activities Totals
Total Net Capital Assets
22 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

Governmental activities net capital assets decreased by $12.7 million mostly due to decreases in Buildings and Infrastructure from the depreciation of those assets.

Business-type activities’ net capital assets decreased $1.4 billion over the prior fiscal year. Significant capital asset activities during the year include:
 Harbor Fund capital assets decreased by $1.5 billion, with the decrease mostly due to the ownership transfer of the Long Beach International Gateway Bridge to Caltrans. The fund also reported an increase of $65.5 million in land due to the purchase of 28.6 acres made up of three parcels on the north end of Pier D.
 Airport Fund capital assets increased by $49.6 million due to the completion of the new Ticketing Lobby and Checked Baggage Inspection System (CBIS) facility.  Other Enterprise Funds capital asset increases resulted from gas utility pipeline improvements and water utility distribution systems.

Additional information on the City’s capital assets can be found in Note 6 to the basic financial statements, and information related to commitments for future capital asset acquisitions can be found in Note 19 to the basic financial statements.

Long-Term Indebtedness: As of September 30, 2022, the City’s net long-term debt outstanding totaled $2.7 billion. Of this amount, $2.3 billion relates to notes, bonds, financed purchase obligations, and $284.6 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. 2022 2021 2022 2021 2022 2021
Notes Payable 7,233$ 7,569$ 513,207$ 545,309$ 520,440$ 552,878$ Bonds Payable 231,920 258,203 1,519,722 1,600,382 1,751,642 1,858,585 Financed Purchase Obligations 47,068 38,943 30,105 32,943 77,173 71,886 Other Obligations 307,576 313,765 - - 307,576 313,765 593,797$ 618,480$ 2,063,034 $ 2,178,634 $ 2,656,831 $ 2,797,114 $ Outstanding Debt Obligations
September 30, 2022 and 2021
(In Thousands)
Governmental Business-type
Total Outstanding
Activities Activities Totals

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

Governmental Activities
 Bonds payable decreased by $26.2 million as a result of annual principal payments in the amount of $22.1 million and premium amortization. For financed purchase obligations, the City is 23 City of Long Beach
Management’s Discussion and Analysis (Unaudited)
For the Fiscal Year Ended September 30, 2022

reporting an increase of $8.1 million primarily due to new obligations for purchase of technology equipment, fire trucks and refuse trucks. The Other Obligations of $307.6 million is mostly attributable to City Hall and Civic Center complex.

Business-Type Activities
 Bonds payable reported a decrease of $80.7 million. The change is attributed to the refunding of the 2012 Aquarium bonds that included a payof f of $26.3 million, refunding of the 2010A and 2010B Airport bonds and issuance of new money for $18.0 million, and for principal payments in the amount of $71.7 million made by various enterprise funds. Notes payable decreased by $32.1 million mostly due to the Harbor Department payoff on a line of credit. Additional information on the City’s long-term obligations can be found in Notes 7 through 9 to the basic financial statements.

Economic Outlook
While the City of Long Beach continues to recover from the lasting implications of the COVID-19 pandemic, the City has remained strongly committed to best providing critical public services, prioritizing significant recovery support for residents and busine sses, and making strong investments in the City’s infrastructure.

The national economy has slowed from high inflation and continued rising interest rates. The City’s current economic condition reflects a strong labor ma rket, which has held the unemployment rate the lowest in decades and increased wages. This has su stained consumer spending that supports the City’s sales and use tax related revenues. However, rising interest rates may result in a slow-down in the real estate market that could reduce the rate of growth in property tax revenues.

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. 24 Intentionally Left Blank

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 89,841$ 172,505$ 262,346$ -$ Non-Pooled Cash and Cash Equivalents 35,571 26,803 62,374 53,052 Pooled Investments 186,940 358,933 545,873 - Interest Receivable 827 874 1,701 - Property Tax Receivable, Net 113,212 - 113,212 - Accounts and Loans Receivables, Net 35,487 131,938 167,425 9,669 Due from Other Governments 105,992 93,501 199,493 - Lease Receivables - 2,752 2,752 - Internal Balances 43,756 (43,756) - - Inventory 3,221 11,692 14,913 3,210 Other Assets and Deposits 12,839 32,420 45,259 1,361 Land Held for Resale 5,874 - 5,874 - Total Current Assets 633,560 787,662 1,421,222 67,292 Noncurrent Restricted Assets:

Non-Pooled Investments - 36,949 36,949 21,779 Total Noncurrent Restricted Assets - 36,949 36,949 21,779 Other Noncurrent Assets:

Pooled Investments 385,412 740,010 1,125,422 - Other Noncurrent Receivables 376,522 149,397 525,919 - Prepaid Gas - Long-Term - 286,887 286,887 - Fair Value - Commodity Swap - 294,922 294,922 - Land and Other Capital Assets not being Depreciated 379,308 2,215,794 2,595,102 21,209 Capital Assets, Net of Accumulated Depreciation/Amortization 645,514 2,874,867 3,520,381 84,139 Other Assets 6,000 39,650 45,650 8,817 Total Other Noncurrent Assets 1,792,756 6,601,527 8,394,283 114,165 Total Assets 2,426,316 7,426,138 9,852,454 203,236

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 357,455 121,291 478,746 16,027 Total Assets and Deferred Outflows of Resources 2,783,771 7,547,429 10,331,200 219,263

LIABILITIES
Current Liabilities:

Accounts Payable 80,253 134,081 214,334 5,965 Accrued Wages and Benefits Payable 2,487 992 3,479 4,872 Accrued Interest Payable 2,351 27,197 29,548 - Unearned Revenue, Credits, and Other Payables 67,230 57,643 124,873 42,859 Employee Benefits and Accrued Long-Term Obligations 95,776 26,490 122,266 20,268 44,840 78,970 123,810 1,203 Total Current Liabilities 292,937 325,373 618,310 75,167 Noncurrent Liabilities:

Fair Value - Interest Rate Swap - 2,037 2,037 - Other Payables - 9,327 9,327 6,050 Lease Liability - - - 9,053 Employee Benefits and Accrued Long-Term Obligations 291,374 170,277 461,651 5,219 548,957 1,984,064 2,533,021 2,010
Total OPEB Liability 3,156 1,009 4,165 - Net Pension Liability 966,212 339,203 1,305,415 32,193 Total Noncurrent Liabilities 1,809,699 2,505,917 4,315,616 54,525 Total Liabilities 2,102,636 2,831,290 4,933,926 129,692

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 331,886 449,119 781,005 3,825 Total Liabilities and Deferred Inflows of Resources 2,434,522 3,280,409 5,714,931 133,517

NET POSITION
Net Investment in Capital Assets 456,247 3,548,274 4,004,521 102,135 Restricted for:

Debt Service 27,100 22,454 49,554 - Capital Projects 144,699 87,003 231,702 300 Public Safety 7,833 - 7,833 - Public Health 202 - 202 - Community and Cultural 319,549 - 319,549 - Healthcare Insurance 18,611 - 18,611 - Tidelands - 57,003 57,003 - Airport - 9,708 9,708 - Subsidence - 185,209 185,209 - Unrestricted (624,992) 357,369 (267,623) (16,689) Total Net Position 349,249$ 4,267,020$ 4,616,269$ 85,746$ Bonds, Loans, Financed Purchase, and Other Long-Term Obligations Bonds, Loans, Financed Purchase, and Other Long-Term Obligations Primary Government
City of Long Beach
Statement of Net Position
September 30, 2022
(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 16,722$ 186$ -$ -$ General Government 41,335 16,244 5,044 - Public Safety 407,420 53,776 17,727 - Public Health 101,438 10,289 152,021 - Community and Cultural 259,577 21,627 79,064 237 Public Works 170,385 49,737 48,757 86,544 Oil Operations 6,830 16,195 - - Interest on Long-Term Debt 18,253 - - - Total Governmental Activities 1,021,960 168,054 302,613 86,781

BUSINESS-TYPE ACTIVITIES
Gas Utility 128,684 144,115 - - Water Utility 136,550 123,932 - 2,920 Tidelands Operating 146,178 84,845 31 - Tideland Oil Revenue 164,564 190,336 - - Harbor 1,871,078 513,989 - 87,496 Non-major Enterprise Funds 213,374 199,550 188 41,063 Total Business-Type Activities 2,660,428 1,256,767 219 131,479 Total Primary Government 3,682,388$ 1,424,821$ 302,832$ 218,260$

COMPONENT UNIT
Long Beach Public Transportation
Company 115,620$ 9,115$ 94,483$ 25,309$ 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
Prior Period Adjustment
Net Position, End of Year
Program Revenues
City of Long Beach
Statement of Activities
For the Fiscal Year Ended September 30, 2022
(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
(16,536)$ -$ (16,536)$ -$ (20,047) - (20,047) - (335,917) - (335,917) - 60,872 - 60,872 - (158,649) - (158,649) - 14,653 - 14,653 - 9,365 - 9,365 - (18,253) - (18,253) - (464,512) - (464,512) -
- 15,431 15,431 - - (9,698) (9,698) - - (61,302) (61,302) - - 25,772 25,772 - - (1,269,593) (1,269,593) - - 27,427 27,427
- (1,271,963) (1,271,963) - (464,512) (1,271,963) (1,736,475) - - - - 13,287 234,386 - 234,386 - 174,257 - 174,257 - 40,349 - 40,349 - 56,868 - 56,868 - 20,813 - 20,813 - 1,495 11,461 12,956 (674) 13,607 (13,607) - - 541,775 (2,146) 539,629 (674) 77,263 (1,274,109) (1,196,846) 12,613 271,986 5,541,129 5,813,115 73,251 - - - (118) 349,249$ 4,267,020$ 4,616,269$ 85,746$ 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 2022
ASSETS
Pooled Cash and Cash Equivalents 190,771$ 213,406$ 29,226$ 94,148$ 527,551$ Non-Pooled Cash and Cash Equivalents 1,377 - 2,140 17,615 21,132 Interest Receivable 655 - - 4 659 Property Taxes 119,181 - - - 119,181 Accounts Receivable 39,639 290 185 4,337 44,451 Due from Other Governments 39,585 14,752 2,021 49,634 105,992 Due from Other Funds 26,503 - - 1,061 27,564 Lease Receivables 143,309 - - 3,131 146,440 Allowance for Receivables (10,254) (140) (168) (5,763) (16,325) Inventory - 102 - - 102 Other Assets - Current 1,632 1,489 - 277 3,398 Advances to Other Funds - - - 3,809 3,809 Land Held for Resale - - - 5,874 5,874 Other Noncurrent Receivables - - - 230,082 230,082 Total Assets 552,398$ 229,899$ 33,404$ 404,209$ 1,219,910$

LIABILITIES
Liabilities:

Accounts Payable 20,191$ 20,957$ 536$ 16,667$ 58,351$ Accrued Wages and Benefits Payable 1,902 43 24 287 2,256 Due to Other Funds 7,368 153 85 23,521 31,127 Unearned Revenues 6,995 6,550 686 42,823 57,054 Deposits and Collections Held in Trust 4,716 1,103 1,736 2,036 9,591 Advances from Other Funds 21,832 - - 3,809 25,641 Total Liabilities 63,004 28,806 3,067 89,143 184,020

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 258,544 - - 227,983 486,527

FUND BALANCES
Nonspendable 1,632 1,489 - 1,098 4,219 Restricted 2,921 111,182 30,337 110,061 254,501 Committed 77,711 - - 1,200 78,911 Assigned 148,586 88,422 - - 237,008 Unassigned - - - (25,276) (25,276) Total Fund Balances 230,850 201,093 30,337 87,083 549,363 Total Liabilities, Deferred Inflows of Resources
and Fund Balances 552,398$ 229,899$ 33,404$ 404,209$ 1,219,910$ (In Thousands)
City of Long Beach
Governmental Funds
Balance Sheet
September 30, 2022
Receivables:

The notes to the basic financial statements are an integral part of this statement. 29 Total governmental fund balances 549,363$
570,956
332,437
161,175
(1,331,878)
67,196
Net position of governmental activities 349,249$
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, 2022
(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 $342,356 o f non-depreciable assets an d $228,600 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 2022
Revenues:

Taxes:

Property 204,899 $ -$ -$ 29,492$ 234,391$ Sales 171,191 - - 3,066 174,257 Utility Users 40,349 - - - 40,349 Other Taxes 44,420 - - 12,448 56,868 Franchise Fees 20,813 - - - 20,813 Licenses and Permits 42,376 - - 11,113 53,489 Fines and Forfeitures 17,670 - - - 17,670 Use of Money and Property 24,867 - 211 2,523 27,601 From Other Agencies 7,883 86,775 118,109 176,627 389,394 Charges for Services 46,217 - - 1,794 48,011 Other 1,386 10,974 2,279 2,832 17,471 Total Revenues 622,071 97,749 120,599 239,895 1,080,314 Expenditures:

Current:

Legislative and Legal 17,124 - - 4 17,128 General Government 35,007 - 10 5,795 40,812 Public Safety 392,868 - - 14,330 407,198 Public Health 15,051 - - 85,951 101,002 Community and Cultural 57,045 - 113,588 90,806 261,439 Public Works 61,622 4,630 - 8,356 74,608 Oil Operations 2,979 - - - 2,979 Total Current Expenditures 581,696 4,630 113,598 205,242 905,166 Capital Improvements 116 91,067 - 11,497 102,680 Debt Service:

Principal 1,446 - - 22,057 23,503 Interest 11 - - 10,142 10,153 Debt Administration Fees 16 - - 490 506 Total Expenditures 583,285 95,697 113,598 249,428 1,042,008 Excess of Revenues over
(under) Expenditures 38,786 2,052 7,001 (9,533) 38,306 Other Financing Sources (Uses):

Proceeds from Sale of Capital Asset 1,180 - - 1,180 Issuance of Refunding Debt - - - 25,411 25,411 Premium on Refunding Debt Issuance - - - 2,123 2,123 Payment to Refunded Bonds Escrow Agent - - - (25,057) (25,057) Transfers In 77,638 46,536 - 9,278 133,452 Transfers Out (59,435) (5,555) - (52,002) (116,992) Total Other Financing Sources (Uses) 19,383 40,981 - (40,247) 20,117 Net Change in Fund Balances 58,169 43,033 7,001 (49,780) 58,423 Fund Balances - October 1 172,681 158,060 23,336 136,863 490,940 Fund Balances - September 30 230,850$ 201,093$ 30,337$ 87,083$ 549,363$ (In Thousands)
City of Long Beach
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended September 30, 2022
The notes to the basic financial statements are an integral part of this statement. 31 58,423$
(2,259)
(1,671)
6,029
7,633
7,270

21,439
(8,862)
(10,739)
Change in net position of governmental activities 77,263$ 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 ($18,959) is less than depreciation ($21,218) 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 and OPEB 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 expense reporte d in the statemen t of activities do no t require the use of current financial resources and, therefore, are not reported as expenses 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, 2022
(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 199,545$ 199,545$ 204,899$ 5,354$ Sales Taxes 140,616 140,616 171,191 30,575 Utility Users Taxes 33,195 33,195 40,349 7,154 Other Taxes 36,446 36,446 44,420 7,974 Franchise Fees 27,901 27,901 20,813 (7,088) Licenses and Permits 32,444 32,444 42,376 9,932 Fines and Forfeitures 19,379 19,379 17,670 (1,709) Use of Money and Property 33,215 33,220 24,867 (8,353) From Other Agencies 6,922 7,033 7,883 850 Charges for Services 46,895 45,184 46,217 1,033 Other 3,571 991 1,386 395 Proceeds from Sale of Capital Asset - - 1,180 1,180 Transfers In 22,699 22,699 77,638 54,939 Total Revenues 602,828 598,653 700,889 102,236 Expenditures:

Current:

Legislative and Legal
Mayor and City Council 6,977 8,579 6,652 1,927 City Attorney 3,996 3,996 4,517 (521) City Clerk 6,116 6,484 5,958 526 General Government
City Auditor 3,198 3,198 2,239 959 City Manager 7,668 10,941 9,441 1,500 Civil Service 3,651 3,651 3,622 29 Financial Management 24,811 24,560 18,237 6,323 Planning and Building 927 1,162 1,960 (798) Public Safety
Police 262,760 267,636 250,917 16,719 Fire 117,171 118,353 118,553 (200) Disaster Preparedness 13,502 13,502 13,435 67 City Prosecutor 7,044 7,485 7,454 31 Planning and Building - Code Enforcement 4,186 3,774 3,559 215 Public Health 11,833 28,587 15,160 13,427 Community and Cultural
Community Development 1,335 7,354 2,496 4,858 Library 20,629 21,841 21,312 529 Parks and Recreation 32,534 35,283 33,242 2,041 Public Works 53,246 79,033 61,906 17,127 Oil Operations 3,291 3,291 2,979 312 Debt Service 512 512 1,473 (961) Capital Outlay 129 529 116 413 Transfers Out 59,075 56,238 59,435 (3,197) Total Expenditures 644,591 705,989 644,663 61,326 Net Change in Budgetary Fund Balance: (41,763)$ (107,336)$ 56,226$ 163,562$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 56,226$ Add: Encumbrances 1,943
Change in Fund Balance - September 30, GAAP Basis 58,169 Fund Balance, October 1, GAAP Basis 172,681
Fund Balance, September 30, GAAP Basis 230,850$
1 Incorporates adjustments due to prepayment of the CalPERS unfunded liability. See page 157 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, 2022
Variance
with Final
Actual on Budget
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 92$ 92$ 211$ 119$ From Other Agencies 104,967 114,097 118,109 4,012 Other 177 177 2,279 2,102 Total Revenues 105,236 114,366 120,599 6,233 Expenditures:

General Government
Financial Management 177 177 10 167 Community and Cultural
Development Services 106,852 118,579 113,588 4,991 Total Expenditures 107,029 118,756 113,598 5,158 Net Change in Budgetary Fund Balance (1,793)$ (4,390)$ 7,001$ 11,391$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 7,001$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis 7,001 Fund Balance, October 1, GAAP Basis 23,336
Fund Balance, September 30, GAAP Basis 30,337$
(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, 2022
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:

Use of Money and Property 92$ 92$ 211$ 119$ From Other Agencies 104,967 114,097 118,109 4,012 Other 177 177 2,279 2,102 Total Revenues 105,236 114,366 120,599 6,233 Expenditures:

General Government
Financial Management 177 177 10 167 Community and Cultural
Development Services 106,852 118,579 113,588 4,991 Total Expenditures 107,029 118,756 113,598 5,158 Net Change in Budgetary Fund Balance (1,793)$ (4,390)$ 7,001$ 11,391$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 7,001$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis 7,001 Fund Balance, October 1, GAAP Basis 23,336
Fund Balance, September 30, GAAP Basis 30,337$
(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, 2022
34 The notes to the basic financial statements are an integral part of this statement.

Tideland
Gas Wate r Tidelands Oil
Utility Utility Operating Revenue
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 54,002$ 45,628$ 150,305$ 60,811$ Non-Pooled Cash and Cash Equivalents 45 903 6,447 - Receivables:

Interest Receivable 20 4 842 - Accounts Receivable 20,389 9,222 8,960 21,523 Due from Other Governments - 877 152 - Due from Other Funds 10 101 24,001 - Lease Receivable - 342 2,268 - Allowance for Receivables (3,024) (1,181) (1,042) - Deposits - - - - Inventory 3,679 7,025 - - Prepaid Gas - Current 23,893 - - - Other Assets - Current 4 2,646 195 - Total Current Asset 99,018 65,567 192,128 82,334 Noncurrent Assets:

Restricted Noncurrent Assets:

Non-Pooled Investments 29,137 1,972 5,840 - Noncurrent Receivables:

Lease Receivables- Noncurrent - - 123,585 - Other Noncurrent Receivables, Net - - - - Advances to Other Funds - - - - Fair Value - Commodity Swap 294,922 - - - Capital Assets:

Land and Other Capital Assets not being Depreciated 19,343 91,509 77,339 - Capital Assets, Net of Accumulated Depreciation/Amortization 168,563 288,257 256,901 8,317 Prepaid Gas - Long Term 286,887 - - - Other Assets - Long-Term - - - - Total Noncurrent Assets 798,852 381,738 463,665 8,317 Total Assets 897,870 447,305 655,793 90,651

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 13,220 14,585 22,973 1,786 City of Long Beach
Proprietary Funds
Statement of Net Position (Deficit)
September 30, 2022
(In Thousands)
Business-type Activities - Enterprise Funds Governmental Activities
Other Total Internal
Proprietary Proprietary Servic e
Harbor Funds Funds Funds
634,379$ 326,323$ 1,271,448$ 134,642$
1 19,407 26,803 14,439 1 7 874 - 65,928 17,979 144,001 1,416
76,755 15,717 93,501 -
751 383 25,246 15,370 - 142 2,752 - (310) (6,506) (12,063) (24) - - - 7,599 750 238 11,692 3,119 - - 23,893 - 5,618 64 8,527 1,842 783,873 373,754 1,596,674 178,403
- - 36,949 - - 1,793 125,378 -
24,019 - 24,019 -
- - - 25,419 - - 294,922 - 1,949,328 78,275 2,215,794 36,952
1,794,390 358,439 2,874,867 416,914
- - 286,887 - 39,650 - 39,650 6,000 3,807,387 438,507 5,898,466 485,285
4,591,260 812,261 7,495,140 663,688
45,546 23,181 121,291 25,018
(Continued)
Business-type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 35 Tideland
Gas Wate r Tidelands Oil
Utility Utility Operating Revenue
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 54,002$ 45,628$ 150,305$ 60,811$ Non-Pooled Cash and Cash Equivalents 45 903 6,447 - Receivables:

Restricted Noncurrent Assets:

Non-Pooled Investments 29,137 1,972 5,840 - Noncurrent Receivables:

Lease Receivables- Noncurrent - - 123,585 - Other Noncurrent Receivables, Net - - - - Advances to Other Funds - - - - Fair Value - Commodity Swap 294,922 - - - Capital Assets:

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 13,220 14,585 22,973 1,786 City of Long Beach
Proprietary Funds
Statement of Net Position (Deficit)
September 30, 2022
(In Thousands)
Business-type Activities - Enterprise Funds Governmental Activities
Other Total Internal
Proprietary Proprietary Servic e
Harbor Funds Funds Funds
634,379$ 326,323$ 1,271,448$ 134,642$
1 19,407 26,803 14,439 1 7 874 - 65,928 17,979 144,001 1,416
76,755 15,717 93,501 -
751 383 25,246 15,370 - 142 2,752 - (310) (6,506) (12,063) (24) - - - 7,599 750 238 11,692 3,119 - - 23,893 - 5,618 64 8,527 1,842 783,873 373,754 1,596,674 178,403
- - 36,949 - - 1,793 125,378 -
24,019 - 24,019 -
- - - 25,419 - - 294,922 - 1,949,328 78,275 2,215,794 36,952
1,794,390 358,439 2,874,867 416,914
- - 286,887 - 39,650 - 39,650 6,000 3,807,387 438,507 5,898,466 485,285
4,591,260 812,261 7,495,140 663,688
45,546 23,181 121,291 25,018
(Continued)
Business-type Activities - Enterprise Funds
36 The notes to the basic financial statements are an integral part of this statement.

Tideland
Gas Wate r Tidelands Oil
Utility Utility Operating Revenue

LIABILITIES
Current Liabilities Payable from Current Assets
Accounts Payable 10,352 20,053 11,371 16,986 Accrued Wages 104 124 137 18 Accrued Interest Payable 9,626 194 2,271 - Due to Other Funds 1,175 988 695 79 Unearned Revenues 2,470 237 2,191 - Collections Held in Trust - 4 152 - Customers Deposits 2,913 1,086 994 - Advances from Developers - 1,057 - - Accrued Self-Insurance Claims - Current - - - - Environmental Remediation - Current - - - - Due to State of California - - - 4,588 1,963 2,351 3,105 299
Financed Purchase Obligations - Current 1,186 1,696 43 - Bonds Payable Due Within One Year 18,645 3,450 11,615 - Other Long-Term Obligations - Current - - 30 - Total Current Liabilities 48,434 31,240 32,604 21,970 Noncurrent Liabilities:

Advances from Other Funds - - - - Unearned Revenues - - 4,440 - Accrued Self-Insurance Claims - - - - Accrued Oil Field Abandonment Costs - - - 127,080 Environmental Remediation - - - - Site Restoration - 1,000 - - Fair Value - Interest Rate Swap 2,037 - - - 4,192 4,501 7,168 533
Financed Purchase Obligations 9,147 17,891 142 - Other Long-Term Obligations - 14,000 251 - Bonds Payable 520,870 6,558 155,696 - Total OPEB Liability 119 129 200 16 Net Pension Liability 33,359 43,559 55,689 5,393 Total Noncurrent Liabilities 569,724 87,638 223,586 133,022 Total Liabilities 618,158 118,878 256,190 154,992

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 297,454 3,435 129,939 1,083

NET POSITION (DEFICIT)
Net Investment in Capital Assets 176,156 346,606 172,303 8,317 Restricted for:

Debt Service - 1,027 3,610 - Capital Projects 21,004 - 473 - Insurance - - - - Tidelands - - 57,003 - Airport - - - - Subsidence - - - - Unrestricted (201,682) (8,056) 59,248 (71,955) Total Net Position (Deficit) (4,522)$ 339,577$ 292,637$ (63,638)$ Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Net Position of Business-type Activities
Business-type Activities - Enterprise Funds
Proprietary Funds
City of Long Beach
(Continued)
(In Thousands)
September 30, 2022
Statement of Net Position (Deficit)
Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
Governmental
Activities
Other Total Internal
Proprietary Proprietary Servic e
Harbor Funds Funds Funds
46,660 28,659 134,081 21,902
388 221 992 231 13,437 1,669 27,197 678
28,915 891 32,743 4,310 24,640 1,346 30,884 -
4,971 742 5,869 4,539 - 1,215 6,208 - - 13,625 14,682 -
3,750 - 3,750 32,599 - - - 115 - - 4,588 - 6,680 3,754 18,152 6,929 - - 2,925 10,841 37,090 2,975 73,775 1,600
2,240 - 2,270 5,280 168,771 55,097 358,116 89,024
3,587 - 3,587 - - 4,887 9,327 - - - - 147,106 - - 127,080 - 5,909 - 5,909 485 - - 1,000 - - - 2,037 - 13,578 6,316 36,288 8,307
- - 27,180 36,226 496,686 - 510,937 279,296 635,997 126,826 1,445,947 13,518
360 185 1,009 235 132,583 68,620 339,203 73,451
1,288,700 206,834 2,509,504 558,624
1,457,471 261,931 2,867,620 647,648
9,261 7,947 449,119 6,534
2,531,127 313,765 3,548,274 121,192
14,748 3,069 22,454 -
37,463 28,063 87,003 1,593
- - - 18,611 - - 57,003 - - 9,708 9,708 - - 185,209 185,209 -
586,736 25,750 390,041 (106,872) 3,170,074$ 565,564$ 4,299,692 34,524$
(32,672)
4,267,020$
Business-type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 37 Tideland
Gas Wate r Tidelands Oil
Utility Utility Operating Revenue

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 297,454 3,435 129,939 1,083

NET POSITION (DEFICIT)
Net Investment in Capital Assets 176,156 346,606 172,303 8,317 Restricted for:

Debt Service - 1,027 3,610 - Capital Projects 21,004 - 473 - Insurance - - - - Tidelands - - 57,003 - Airport - - - - Subsidence - - - - Unrestricted (201,682) (8,056) 59,248 (71,955) Total Net Position (Deficit) (4,522)$ 339,577$ 292,637$ (63,638)$ Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Net Position of Business-type Activities
Business-type Activities - Enterprise Funds
Proprietary Funds
City of Long Beach
(Continued)
(In Thousands)
September 30, 2022
Statement of Net Position (Deficit)
Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
Governmental
Activities
Other Total Internal
Proprietary Proprietary Servic e
Harbor Funds Funds Funds
46,660 28,659 134,081 21,902
388 221 992 231 13,437 1,669 27,197 678
28,915 891 32,743 4,310 24,640 1,346 30,884 -
4,971 742 5,869 4,539 - 1,215 6,208 - - 13,625 14,682 -
3,750 - 3,750 32,599 - - - 115 - - 4,588 - 6,680 3,754 18,152 6,929 - - 2,925 10,841 37,090 2,975 73,775 1,600
2,240 - 2,270 5,280 168,771 55,097 358,116 89,024
3,587 - 3,587 - - 4,887 9,327 - - - - 147,106 - - 127,080 - 5,909 - 5,909 485 - - 1,000 - - - 2,037 - 13,578 6,316 36,288 8,307
- - 27,180 36,226 496,686 - 510,937 279,296 635,997 126,826 1,445,947 13,518
360 185 1,009 235 132,583 68,620 339,203 73,451
1,288,700 206,834 2,509,504 558,624
1,457,471 261,931 2,867,620 647,648
9,261 7,947 449,119 6,534
2,531,127 313,765 3,548,274 121,192
14,748 3,069 22,454 -
37,463 28,063 87,003 1,593
- - - 18,611 - - 57,003 - - 9,708 9,708 - - 185,209 185,209 -
586,736 25,750 390,041 (106,872) 3,170,074$ 565,564$ 4,299,692 34,524$
(32,672)
4,267,020$
Business-type Activities - Enterprise Funds
38 The notes to the basic financial statements are an integral part of this statement.

Gas Water Tidelands Tideland
Utility Utility Operating Oil Revenue
Operating Revenues:

Licenses and Permits -$ -$ 1,473$ -$ Fines and Forfeitures - - 282 - Fees, Concessions, and Rentals - - 41,010 186,467 From Other Agencies 1,574 - - - Charges for Services 142,421 120,212 31,390 3,793 Other 120 2,383 214 - Total Operating Revenues 144,115 122,595 74,369 190,260 Operating Expenses:

Personnel Services 19,004 25,350 34,838 2,692 Purchases of Gas and Water 41,286 32,211 - - Maintenance and Other Operations 28,720 37,303 69,424 4,862 Rental Expense - - - - Insurance Premiums - - - - Self-Insured Losses - - - - Compensated Absences - - - - Employee Benefits - - - - Payments to Other Entities - - - 139,278 Depreciation 7,695 13,784 20,691 916 Total Operating Expenses 96,705 108,648 124,953 147,748 Operating Income (Loss) 47,410 13,947 (50,584) 42,512 Non-Operating Income (Expenses):

Interest Income 1,622 322 1,369 - Interest Expense (27,420) (1,249) (7,721) - Unrealized Investment Loss (2,367) (1,964) (8,969) - Gain (Loss) on Disposition of Capital Assets (279) (4) 25 - Oil Field Abandonment - - - (16,780) Operating Grants - - 31 - Other Income - 1,337 10,476 76 Other Expense (771) (23,869) (4,484) - (29,215) (25,427) (9,273) (16,704) Income (Loss) Before Contributions S
and Transfers 18,195 (11,480) (59,857) 25,808 Capital Grants and Contributions - 2,920 - - Transfers:

Transfers In 4,233 - 60,368 - Transfers Out (17,440) - - (33,799) Change in Net Position 4,988 (8,560) 511 (7,991) Net Position (Deficit) - October 1 (9,510) 348,137 292,126 (55,647) Net Position (Deficit) - September 30 (4,522)$ 339,577$ 292,637$ (63,638)$ City of Long Beach
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) For the Fiscal Year Ended September 30, 2022
(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
-$ 33,520$ 34,993$ -$ - 57 339 - 36,381 45,579 309,437 -
494 5,529 7,597 - 439,096 111,346 848,258 519,572 3,606 1,907 8,230 5,121 479,577 197,938 1,208,854 524,693
65,176 47,620 194,680 47,258 - - 73,497 - 62,891 121,352 324,552 87,309 - 391 391 - - - - 14,077 - - - 26,588 - - - 73,105 - - - 255,494 38,429 - 177,707 - 179,770 18,804 241,660 31,692 346,266 188,167 1,012,487 535,523
133,311 9,771 196,367 (10,830) 5,426 2,722 11,461 550 (27,340) (5,859) (69,589) (7,835) (27,943) (14,140) (55,383) (5,837) (1,465,657) 1 (1,465,914) 1,175 - - (16,780) - - 188 219 936 34,412 1,612 47,913 11,526 (2,447) (4,822) (36,393) (1,453) (1,483,549) (20,298) (1,584,466) (938) (1,350,238) (10,527) (1,388,099) (11,768) 87,496 41,063 131,479 -
307 23 64,931 7,821 (26,213) (1,086) (78,538) (10,674) (1,288,648) 29,473 (1,270,227) (14,621) 4,458,722 536,091 5,569,919 49,145
3,170,074$ 565,564$ 4,299,692 34,524$
(1,270,227)
(3,882)
(1,274,109)$
Business-Type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 39 Gas Water Tidelands Tideland
Utility Utility Operating Oil Revenue
Operating Revenues:

Transfers In 4,233 - 60,368 - Transfers Out (17,440) - - (33,799) Change in Net Position 4,988 (8,560) 511 (7,991) Net Position (Deficit) - October 1 (9,510) 348,137 292,126 (55,647) Net Position (Deficit) - September 30 (4,522)$ 339,577$ 292,637$ (63,638)$ City of Long Beach
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) For the Fiscal Year Ended September 30, 2022
(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
-$ 33,520$ 34,993$ -$ - 57 339 - 36,381 45,579 309,437 -
494 5,529 7,597 - 439,096 111,346 848,258 519,572 3,606 1,907 8,230 5,121 479,577 197,938 1,208,854 524,693
65,176 47,620 194,680 47,258 - - 73,497 - 62,891 121,352 324,552 87,309 - 391 391 - - - - 14,077 - - - 26,588 - - - 73,105 - - - 255,494 38,429 - 177,707 - 179,770 18,804 241,660 31,692 346,266 188,167 1,012,487 535,523
133,311 9,771 196,367 (10,830) 5,426 2,722 11,461 550 (27,340) (5,859) (69,589) (7,835) (27,943) (14,140) (55,383) (5,837) (1,465,657) 1 (1,465,914) 1,175 - - (16,780) - - 188 219 936 34,412 1,612 47,913 11,526 (2,447) (4,822) (36,393) (1,453) (1,483,549) (20,298) (1,584,466) (938) (1,350,238) (10,527) (1,388,099) (11,768) 87,496 41,063 131,479 -
307 23 64,931 7,821 (26,213) (1,086) (78,538) (10,674) (1,288,648) 29,473 (1,270,227) (14,621) 4,458,722 536,091 5,569,919 49,145
3,170,074$ 565,564$ 4,299,692 34,524$
(1,270,227)
(3,882)
(1,274,109)$
Business-Type Activities - Enterprise Funds
40 The notes to the basic financial statements are an integral part of this statement.

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

Receipts from Customers 137,935$ 124,518$ 75,276$ -$ Receipts from Oil Companies - - - 187,482 Receipts from Other Entities 1,574 - 131 - Receipts from Other Funds - 30,832 9,755 1,478 Payments for Employee Salaries (20,497) (26,650) (35,331) (3,417) Payments for Goods and Services (42,312) (62,245) (62,443) (2,223) Payments for Compensated Absences - - - - Payments for Employee Benefits - - - - Payments for Liability Claims - - - - Payments to Other Funds - - - - Payments to Other Entities - (1,513) (624) (140,542) Operating Grants to Utility Customers - (22,457) (11,541) Other Income - 1,337 10,476 76 Other Expense (771) (1,412) (4,484) - 75,929 42,410 (18,785) 42,854
Cash Flows from Non-Capital Financing Activities:
- - 31 - Operating Subsidies Received from Other Funds - - - - (16,040) - - - Payments of Interest (27,748) - - - Transfers In 4,233 - 60,368 - Transfers Out (17,440) - - (33,799) Net Cash Provided by (Used for)
Non-Capital Financing Activities (56,995) - 60,399 (33,799) Cash Flows from Capital and Related Financing Activities:
- - - - - 98 25 - - 14,000 - - - - - - - 2,518 - - Receipts from Passenger Facility Charges - - - - - - - - (18,560) (33,145) (9,411) (149)
- (3,300) (39,774) -
(1,764) (1,639) (69) -
- (1,352) (6,293) - Net Cash Used for Capital -
and Related Financing Activities (20,324) (22,820) (55,522) (149) Cash Flows from Investing Activities:
- - 10,044 -
1,617 752 635 -
- - - - (2,052) - - - (2,367) (1,964) (8,969) -
(2,802) (1,212) 1,710 -
(4,192) 18,378 (12,198) 8,906
Cash and Cash Equivalents - October 1 58,239 28,153 168,950 51,905 Cash and Cash Equivalents - September 30 54,047$ 46,531$ 156,752$ 60,811$ Business-Type Activities - Enterprise Funds
Payments for Purchase of Investments
Receipt from Joint Venture
Changes in Investments
City of Long Beach
(In Thousands)
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended September 30, 2022
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
Proceeds from Issuance of Refunding Debt
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
481,390$ 189,704$ 1,008,823$ 3,973$
- - 187,482 - - 1,030 2,735 (2,236) - 583 42,648 533,531 (82,520) (51,253) (219,668) (54,024) (96,310) (106,624) (372,157) (81,581)
- - - (72,154) - - - (257,110) - - - (37,345) - (319) (319) (20,232) - (7,434) (150,113) -
- - (33,998) - 32,899 292 45,080 1,689
- (5,346) (12,013) 8,384 335,459 20,633 498,500 22,895
- - 31 936 3,488 100 3,588 -
- - (16,040) - - - (27,748) - 307 23 64,931 7,821 (26,213) (1,086) (78,538) (10,674) (22,418) (963) (53,776) (1,917) 42,267 - 42,267 -
12,047 1 12,171 1,313
5,000 - 19,000 28,873 - 121,278 121,278 -
- 34,784 37,302 -
- 6,279 6,279 -
- 827 827 - (334,907) (53,629) (449,801) (9,360)
(35,530) (96,191) (174,795) (16,463) (51,074) - (54,546) (12,317) (38,040) (6,544) (52,229) (7,034) (400,237) 6,805 (492,247) (14,988)
- 7,449 17,493 -
5,432 3,331 11,767 -
3,000 - 3,000 -
- - (2,052) 551 (27,943) (14,140) (55,383) (5,837) (19,511) (3,360) (25,175) (5,286) (106,707) 23,115 (72,698) 704
741,087 322,615 1,370,949 148,377
634,380$ 345,730$ 1,298,251$ 149,081$
(continued)
Business-Type Activities - Enterprise Funds
The notes to the basic financial statements are an integral part of this statement. 41 Tideland
INCREASE (DECREASE) IN CASH AND Gas Water Tidelands Oil CASH EQUIVALENTS Utility Utility Operating Revenue
Cash Flows from Operating Activities:

Receipts from Customers 137,935$ 124,518$ 75,276$ -$ Receipts from Oil Companies - - - 187,482 Receipts from Other Entities 1,574 - 131 - Receipts from Other Funds - 30,832 9,755 1,478 Payments for Employee Salaries (20,497) (26,650) (35,331) (3,417) Payments for Goods and Services (42,312) (62,245) (62,443) (2,223) Payments for Compensated Absences - - - - Payments for Employee Benefits - - - - Payments for Liability Claims - - - - Payments to Other Funds - - - - Payments to Other Entities - (1,513) (624) (140,542) Operating Grants to Utility Customers - (22,457) (11,541) Other Income - 1,337 10,476 76 Other Expense (771) (1,412) (4,484) - 75,929 42,410 (18,785) 42,854
Cash Flows from Non-Capital Financing Activities:
- - 31 - Operating Subsidies Received from Other Funds - - - - (16,040) - - - Payments of Interest (27,748) - - - Transfers In 4,233 - 60,368 - Transfers Out (17,440) - - (33,799) Net Cash Provided by (Used for)
Non-Capital Financing Activities (56,995) - 60,399 (33,799) Cash Flows from Capital and Related Financing Activities:
- - - - - 98 25 - - 14,000 - - - - - - - 2,518 - - Receipts from Passenger Facility Charges - - - - - - - - (18,560) (33,145) (9,411) (149)
- (3,300) (39,774) -
(1,764) (1,639) (69) -
- (1,352) (6,293) - Net Cash Used for Capital -
and Related Financing Activities (20,324) (22,820) (55,522) (149) Cash Flows from Investing Activities:
- - 10,044 -
1,617 752 635 -
- - - - (2,052) - - - (2,367) (1,964) (8,969) -
(2,802) (1,212) 1,710 -
(4,192) 18,378 (12,198) 8,906
Cash and Cash Equivalents - October 1 58,239 28,153 168,950 51,905 Cash and Cash Equivalents - September 30 54,047$ 46,531$ 156,752$ 60,811$ Business-Type Activities - Enterprise Funds
Payments for Purchase of Investments
Receipt from Joint Venture
Changes in Investments
City of Long Beach
(In Thousands)
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended September 30, 2022
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
Proceeds from Issuance of Refunding Debt
Governmental
Activities
Other Total Internal
Proprietary Proprietary Service
Harbor Funds Funds Funds
481,390$ 189,704$ 1,008,823$ 3,973$
- - 187,482 - - 1,030 2,735 (2,236) - 583 42,648 533,531 (82,520) (51,253) (219,668) (54,024) (96,310) (106,624) (372,157) (81,581)
- - - (72,154) - - - (257,110) - - - (37,345) - (319) (319) (20,232) - (7,434) (150,113) -
- - (33,998) - 32,899 292 45,080 1,689
- (5,346) (12,013) 8,384 335,459 20,633 498,500 22,895
- - 31 936 3,488 100 3,588 -
- - (16,040) - - - (27,748) - 307 23 64,931 7,821 (26,213) (1,086) (78,538) (10,674) (22,418) (963) (53,776) (1,917) 42,267 - 42,267 -
12,047 1 12,171 1,313
5,000 - 19,000 28,873 - 121,278 121,278 -
- 34,784 37,302 -
- 6,279 6,279 -
- 827 827 - (334,907) (53,629) (449,801) (9,360)
(35,530) (96,191) (174,795) (16,463) (51,074) - (54,546) (12,317) (38,040) (6,544) (52,229) (7,034) (400,237) 6,805 (492,247) (14,988)
- 7,449 17,493 -
5,432 3,331 11,767 -
3,000 - 3,000 -
- - (2,052) 551 (27,943) (14,140) (55,383) (5,837) (19,511) (3,360) (25,175) (5,286) (106,707) 23,115 (72,698) 704
741,087 322,615 1,370,949 148,377
634,380$ 345,730$ 1,298,251$ 149,081$
(continued)
Business-Type Activities - Enterprise Funds
42 The notes to the basic financial statements are an integral part of this statement.

RECONCILIATION OF OPERATING Tideland
INCOME (LOSS)TO NET CASH PROVIDED BY Gas Water Tidelands Oil (USED FOR) OPERATING ACTIVITIES Utility Operating Revenue Operating Income (Loss) 47,410$ 13,947$ (50,584)$ 42,512$ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by (Used for)
Operating Activities:

Depreciation and Amortization Expense 7,695 13,784 20,691 916 Other Income - 2,398 10,476 76 Other Expense (771) (24,930) (4,484) - (Increase) Decrease in Accounts Receivable, Net (4,565) 1,814 2,977 (2,778) - - 116 (1,237) (Increase) Decrease in Amounts Due from Other Funds (10) 30,745 (14,697) 1,478 (Increase) in Inventory - (468) - - (Increase) Decrease in Other Assets 23,789 - (195) 10 Increase in Other Non-Operating Assets - 2,404 - - Increase (Decrease) in Accounts Payable 2,744 4,367 6,993 2,629 Increase (Decrease) in Accrued Wages Payable (1,493) (1,300) (493) (725) Increase (Decrease) in Amounts Due to Other Funds (166) (547) 10,285 (27) Increase in Accrued Claims Payable - - - - Increase (Decrease) in Unearned Revenues 1,063 57 (104) - Increase in Collections Held in Trust 233 139 234 - Total Adjustments 28,519 28,463 31,799 342 Net Cash Provided by (Used for) Operating Activities 75,929$ 42,410$ (18,785)$ 42,854$ NON-CASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:

Amortization of Bond Premium (Discount), Net 23,689$ -$ -$ -$ Accrued Capital Assets - - - - Accrued Oilfield Abandonment Costs - - - 16,780 Amortization of Deferred Outflows on Debt Refunding - - (575) - Amortization of Deferred Inflows on Debt Refunding - - - - Accrued Transfers to Other Fund - - - Borrowing under Other Long-Term Obligations - - - - 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
133,311$ 9,771$ 196,367$ (10,830)$
179,770 18,804 241,660 31,692
32,899 246 46,095 11,526
- (5,068) (35,253) (1,453) (1,520) (2,371) (6,443) 116
- (11,295) (12,416) 30
- 921 18,437 12,463 - (53) (521) - 3,309 (64) 26,849 (1,467) - - 2,404 - (25,543) 16,637 7,827 3,567
1,223 (3,634) (6,422) (4,068) 64 (1,549) 8,060 (22,443) 3,300 - 3,300 3,320 8,646 (4,691) 4,971 -
- 2,979 3,585 442 202,148 10,862 302,133 33,725
335,459$ 20,633$ 498,500$ 22,895$
8,975$ 107,930$ 140,594$ -$
34,688 - 34,688 -
- - 16,780 - - - (575) - 1,254 - 1,254 -
23,979 - 23,979 -
- - - 99,287 2,447 - 2,447 -
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
133,311$ 9,771$ 196,367$ (10,830)$
179,770 18,804 241,660 31,692
32,899 246 46,095 11,526
- (5,068) (35,253) (1,453) (1,520) (2,371) (6,443) 116
- (11,295) (12,416) 30
- 921 18,437 12,463 - (53) (521) - 3,309 (64) 26,849 (1,467) - - 2,404 - (25,543) 16,637 7,827 3,567
1,223 (3,634) (6,422) (4,068) 64 (1,549) 8,060 (22,443) 3,300 - 3,300 3,320 8,646 (4,691) 4,971 -
- 2,979 3,585 442 202,148 10,862 302,133 33,725
335,459$ 20,633$ 498,500$ 22,895$
8,975$ 107,930$ 140,594$ -$
34,688 - 34,688 -
- - 16,780 - - - (575) - 1,254 - 1,254 -
23,979 - 23,979 -
- - - 99,287 2,447 - 2,447 -
Business-Type Activities - Enterprise Funds
44 The notes to the basic financial statements are an integral part of this statement.

September 30, 2022
Private
Purpose Custodial
Trust Funds Funds
ASSETS:

Pooled Cash and Cash Equivalents 561$ 11,405 $ Non-Pooled Cash and Cash Equivalents - 10,413 Property Taxes Receivable - 143
Accounts Receivable - 1,472
Prepaid Expense - 8
Land - 11,000
Total Assets 561 34,441
LIABILITIES:

Accounts Payable - 2,624
Total Liabilities - 2,624
NET POSITION:

Restricted for:

Miller Library Trust 556 -
Mayor's Fund for the Homeless 5 -
Oil Rights - 1,833
Special Assesment Districts - 11,251
Intermodal Container Transfer Facility - 3,435 Los Cerritos Wetlands Authority - 11,620 Other Custodial Funds - 3,678
Total Restricted Net Position
Private
Purpose Custodial
Trust Funds Funds
ADDITIONS:

Contributions -$ 3,353$
Taxes - 11,122
Grants - 821
Use of Money and Property - 99
Miscellaneous Revenue - 11
Total Additions - 15,406
DEDUCTIONS:

Administrative Expense 57 214
Payments to Bond Holders - 8,293
Payments to Others - 9,992
Total Deductions 57 18,499
Change in Net Position (57) (3,093)
Net Position, October 1 618 34,910
Net Position, September 30 561$ 31,817 $
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, 2022
(In Thousands)
561$ 31,817 $
September 30, 2022
Private
Purpose Custodial
Trust Funds Funds
ASSETS:

Accounts Payable - 2,624
Total Liabilities - 2,624
NET POSITION:

Restricted for:

Contributions -$ 3,353$
Taxes - 11,122
Grants - 821
Use of Money and Property - 99
Miscellaneous Revenue - 11
Total Additions - 15,406
DEDUCTIONS:

NOTES TO THE

FINANCIAL

STATEMENTS
45 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 1 – REPORTING ENTITY
Organization
The City of Long Beach (City) operates under a City Charter originally adopted in 1921 and last amended in 2022. 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 Councilmembers elected to serve within their respective districts. The Mayor, City Auditor, City Attorney, and City Prosecutor 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 Harbor, marinas, and oil extraction administrative operations), under a trust agreement with the State of California. 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 present the financial activity of the City and its component units, entities for which the primary government is considered to be financially accountable. Blended component units, although separate legal entities, 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 disc retely 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 a ssistance benefit 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 th e 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 funding 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 financial 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, 2022

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 residents, 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 financing 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 established 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 transactions 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, 2022

Discretely Presented Component Unit
The Long Beach Public Transportation Company (LBT) 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 pr ovide 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 obtained 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 Statemen t 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 exception of exchange or exchange-like transactions between governmental functions that if eliminated would 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 comparis on 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 with 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 a nd major individual 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 resour ces 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, 2022

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 ar e 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 year, 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 am ounts, 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 and financing through leases are reported as other financing sources.

With this measurement focus, operating statements 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 traditional 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 colu mn of the government-wide financial statements, a reconciliation is provided immediately following each fund statement. 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 infra structure. 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, 2022

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 activiti es 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 Tideland Oil Revenue Fund is used to account for the proceeds from oil operations within the City’s tidelands area and related payments to the State Lands Commission.

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 services, 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 accordance with a trust agreement. These include the Miller Library and Mayor’s Fund to End Homelessness, 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 Assessment Districts that issue various debts for the benefit of Long Beach area property owners.

Amounts reported as program revenues include charges 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, incl uding 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 revenues and expenses from non-operating items.

Operating revenues and expenses generally resu lt 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/amortization on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

50 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

City of Long Beach Investment Pool
The City pools the cash resources of its various funds 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.

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 investments. Interest income arising from pooled investments is apportioned to the participating fu nds 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 valu e 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 relation 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 statement of net position date are presented as cash. Cash equivalents and investments with a maturity between 90 days and one year of the statement of net position 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 3 and note 11 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/bo rrowing 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. A ny residual balances between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
51 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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.

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, right-to-use assets, 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 asse ts) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.

Right-to-use assets are defined as leased assets with a useful life of more than one year and are recorded at the present value of future lease payments, including expenses to place the asset into service.

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 capital assets of business-type activities are included as part of the capitalized value of the constructed asset.

Capital assets of the primary government are depr eciated 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
Right-to-Use Assets Shorter of the leased asset's useful life or the lease term

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 land 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.

52 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Lease Receivable
The City is a lessor for noncancellable leases of land and buildings. The City recognizes a lease receivable and a corresponding deferred inflow of resources in the Government-wide, Governmental, and Proprietary Fund financial statements.

At the commencement of a lease, the City measur es the lease receivable at the present value of payments expected to be received over the course of the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the lease term.

Key estimates and judgments related to leases in which the City is lessor are as follows:
• The City recognizes lease receivables with an initial, individual value of $500 or more. • The City uses its estimated implicit rate or incremental borrowing rate as the discount rate for leases, whichever is applicable.
• The lease term includes the noncancellable period of the lease. • Projected lease revenues included in the measurement of the lease receivable are comprised of fixed payments required per the lease terms.
• Extension options are included in the lease term unless it is reasonably certain that they will not be exercised.
• Leases with rent payments that depend on an index or rate, such as the Consumer Price Index or market rate, are initially measured using the index or rate as of the commencement of the lease term.
• Leases with periodic percentage rent increases or flat rate rent increases that are specified in the lease terms are included in the measurement of the lease receivable.

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

Long-Term Obligations
In the government-wide financial statements and proprietary 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 ar e 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 co sts, 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 re ported as other financing sources, while discounts are reported as other financing uses. Issuance costs are reported as debt service expenditures.

53 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Pensions
For purposes of measuring the net pension liab ility and deferred outflow s/inflows of resources related to pensions and pension expense, informa tion 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 a nd payable in accordance with the benefit terms.

Investments are reported at fair value.

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

Postemployment Healthcare Benefits
The City provides postemployment healthcare benefits 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 accu mulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.

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 th e 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.

At September 30, 2022, the City’s total OPEB liability was $4.2 million. The total OPEB liability in the September 30, 2020 actuarial valuation as of measurement date of September 30, 2021, was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Valuation Date September 30, 2020
Measurement Date September 30, 2021
Actuarial Cost Method Entry Age
Actuarial Assumptions:

Inflation 2.50%
Discount Rate 2.19%
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
54 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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 City’s Employee Be nefits Internal Service Fund (EBF). Vacation and holiday benefits are recognized when earned. 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.

For the fiscal year ended September 30, 2022, 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. The City also allows retirees the op tion 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 dependents to use the cash value at retirement of the retiring employee’s accumulated unused sick leave to pay for health, dental, and long-term care insurance premiums until such time as the unused sick leave is exhausted.

The conversion of unused sick leave for poste mployment benefits is reflected as accrued compensated absences benefits and accrued as other post-employment benefits (OPEB) liability in the accompanying financial statements. The employee benefits and OPEB liability of $2.9 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.

As of September 30, 2022, the City has recorded compensated absence and OPEB liabilities in the following categories and funds (in thousands):

Total OPEB
Recorded In Vacation Sick Liability Total
IS Funds 6,140$ 9,096$ 235$ 15,471$ Enterprise Funds 15,972 38,468 1,009 55,449 Total 22,112$ 47,564$ 1,244$ 70,920$ Reported In Government-wide Financial Statements as
Total OPEB
Recorded In Vacation Sick Liability Total
Governmental Activities 51,788$ 121,321$ 3,156$ 176,265$ Business-Type Activities 15,972 38,468 1,009 55,449 Total 67,760$ 159,789$ 4,165$ 231,714$ Reported in Fund Financial Statements as
Employee Benefits
Compensated Absences
55 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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

In addition to liabilities, the statement of financ ial position reports a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time, 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 proprietary 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 unrestric ted resources are used to the extent necessary. At September 30, 2022, the restricted net position balances were $518.0 million and $361.4 million for governmental activities and business type activities, respectively.

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

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
56 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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 adopted 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 sh ared 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.

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 1 st and the second is due February 1 st. 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 2022 budget prior to October 1, 2021 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 presented 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 pur poses, 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.

57 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Implementation of New Accounting Pronouncements
The City applies all Governmental Accountin g Standards Board (GASB) Statements and Interpretations. Application of the following Statements was effective for the City’s fiscal year ended September 30, 2022:

In June of 2017, the GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The Statement is effective for fiscal years beginning after June 15, 2021, and all reporting periods thereafter. As a result of the implementation of GASB Statement No. 87, lease receivable and deferred inflows of resources as of September 30, 2021 were each restated by $284.0 million, with no impact to beginning net position.

In May of 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associ ated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement is effective for reporting periods beginning after December 15, 2021, and all reporting periods thereafter. Early application of this Statement did not have a material impact to the City’s financial statements for the fiscal year ended September 30, 2022.

In January of 2020, GASB issued Statement No. 92, Omnibus 2020 . The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The Statement is effective for reporting periods after June 15, 2021, and all reporting periods thereafter. Application of this Statement did not have a material impact to the City’s financial statements for the fiscal year ended September 30, 2022.

In April 2022, GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to extension of the use of LIBOR, accounting for Supplemental Nutrition Assistance Program (SNAP) distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement No. 34, as amended, and terminology updates related to Statement No. 53 and Statement No. 63 are effective upon issuance. Application of these requirements of this Statement did not have a material impact to the City’s financial statements for the fiscal year ended September 30, 2022.

In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information n eeds of financial statement users by updating the recognition and measurement guidance for compensated absences. The Statement is effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Early application of this Statement did not have a material impact to the City ’s financial statements for the fiscal year ended September 30, 2022.

58 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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

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, 2023.

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.

In April 2022, GASB issued Statement No. 99, Omnibus 2022. This Statement is effective for the City's fiscal year ending September 30, 2023 for the requirements related to leases, Public-Private Partnerships (PPPs), and Subscription-Based In formation Technology Arrangements (SBITAs), and for the City’s fiscal year ending September 30, 2024 for the requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53.

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 . This Statement is effective for the City's fiscal year ending September 30, 2024.

Reclassifications
Certain accounts presented in the fiscal year 2022 financial 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 financia l 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.

59 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 3 – CASH AND INVESTMENTS

Cash and investments as of September 30, 2022 are classified in the accompanying financial statements as follows (in thousands):

Cash and Investments
Pooled cash and investments 1,945,607$
Non-pooled cash and investments 109,736
Total cash and investments 2,055,343$
Cash and investments as of September 30, 2022 consist of the following:

Cash and deposits 68,774$
Investments 1,986,569
Total cash and investments 2,055,343$
A breakdown of cash, cash equivalents, and inve stments between the basic financial statements and the fair value of the investment portfolio at September 30, 2022 is as follows (in thousands):

Governmental Business-type Fiduciary
Activities Activities Funds Total
Pooled Cash and Cash Equivalents 89,841$ 172,505$ 11,966$ 274,312 $ Non-Pooled Cash and Cash Equivalents 35,571 26,803 10,413 72,787 Pooled Investments 186,940 358,933 - 545,873 Noncurrent Pooled Investments 385,412 740,010 - 1,125,422 Restricted Assets:

Non-Pooled Investments - 36,949 - 36,949 Total Cash and Investments 697,764$ 1,335,200$ 22,379$ 2,055,343 $

Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees 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, 2022. Highly sensitive investments are investments 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 i nvestment 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, credit 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.
60 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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

Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in mark et 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 the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and 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, 2022, the weighted average maturity in years for the City’s pooled investments was 1.65 years. The following schedule indicates the interest rate risk of the City’s investments as of September 30, 2022 (in thousands):

Fair Value
Pooled Cash and Investments
Money market mutual funds 2,135$ -
U.S. Treasury notes 1,439,760 1.62
Federal agency securities 286,332 1.42
Corporate notes 78,577 3.74
Local Agency Investment Fund (LAIF) 72,475 0.83 Subtotal Pooled Cash and Investments 1,879,279
Cash and deposits 66,328 N/A
Total Pooled Cash and Investments 1,945,607$
Non-Pooled Cash And Investments
Money market mutual funds 70,341$ -
U.S. Treasury notes 7,812 1.73
Guaranteed Investment Contracts (GIC) 29,137 15.14 Subtotal Non-Pooled Cash And Investments 107,290
Cash and deposits 2,446 N/A
Total Non-Pooled Cash And Investments 109,736$
Weighted Average
Investment Type Maturity (in years)

61 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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, 2022 for each investment type (in thousands):

Minimum
Legal
Rating Total A-/A/A+ AA-/AA/AA+ AAA Unrated
Pooled cash and investments
Money market mutual funds N/A 2,135$ -$ 2,135$ -$ -$ U.S. Treasury notes N/A 1,439,76 0 - - 1,439,760 - Federal agency securities N/A 286,332 - 286,332 - - Corporate notes N/A 78,577 50,986 24,184 3,407 - Local Agency Investment Fund (LAIF) N/A 72,475 - - - 72,475 Total pooled investments 1,879,279$ 50,986$ 312,651$ 1,443,167$ 72,475$ Non-pooled cash and investments
Money market mutual funds N/A 70,341$ -$ -$ -$ 70,341$ U.S. Treasury notes N/A 7,812 - - 7,812 - Guaranteed Investment Contracts (GIC) N/A 29,137 - - - 29,137 Total non-pooled investments 107,290$ -$ -$ 7,812$ 99,478$ Investment Type
Rating as of Year End

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):

Reported
Issuer Investment Type Amount
Federal Home Loan Bank Federal Agency Securities 136,381$

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 party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following 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 City deposits by pledging first trust deed 62 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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, 2022, the City reported deposits of $89.7 million, collateralized in compliance with California Government Code, $20.9 million for checks outstanding.

Fair Value Hierarchy
The City has the following recurring fair value measurements as of September 30, 2022:
 U.S. Treasury Notes totaling $1,447.6 million, Federal Agency Securities totaling $286.3 million, and Corporate Notes totaling $78.6 million are classified in Level 2 of the fair value hierarchy, as the valuation uses a market-based model which considers yield, price of comparable securities, coupon rate, maturity, credit quality and dealer-provided prices. These prices are obtained from various pricing sources by the City’s custodian bank.  Local Agency Investment Funds (LAIF) totaling $72.5 million is measured at fair value, however, the investment is not subject to the fair value hierarchy.  Money Market Funds and Guaranteed Investment Contracts totaling $72.5 million and $29.1 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 inves tments within the fair value hierarchy as of September 30, 2022 (in thousands):

Total Level 1 Level 2 Level 3
Debt Securities
U.S. Treasury notes 1,447,572$ -$ 1 ,447,572$ -$ Federal agency securities 286,332 - 286,332 - Corporate Notes 78,577 - 78,577 - Total investments at fair value 1,812,481 -$ 1,812,481$ -$ Local Agency Investment Fund (LAIF) 72,475
Money market mutual funds 72,476
Guaranteed investment contracts 29,137
Total investments 1,986,569$
Fair Value Measurement
Investments at Fair Value Level
Other Investments at Fair Value
Other Investments at Cost or Contract Value

63 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 4 – RECEIVABLES
The City’s receivables are comprised mainly of property taxes receivable, accounts receivable, due from other governments, lease receivable, and ot her noncurrent 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, lease receivable and other noncurrent receivables.

Receivables at September 30, 2022 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 Receivable
1 655$ -$ -$ 4$ -$ 659 $ Property Taxes Receivable 119,181 - - - - 119,181 Accounts Receivable 39,639 290 185 4,337 1,416 45,867 Due from Other Governments 39,585 14,752 2,021 49,634 - 105,992 Lease Receivable 143,309 - - 3,131 - 146,440 Other Noncurrent Receiv ables - - - 230,082 - 230,082 Total Receiv ables 342,369 15,042 2,206 287,188 1,416 648,221 Less: Allowance for Receivables (10,254) (140) (168) (5,763) (24) (16,349) Net Receivables 332,115$ 14,902$ 2,038$ 281,425$ 1,392$ 631,872 $ Excludes $168 thousand for Build America Subsidy
1 Tideland Nonmajor
Gas Water Tidelands Oil Proprietary
Utility Utility Operating Revenue Harbor Funds Total
Business- type Activities:

Receivables:

Interest Receivable 20$ 4$ 842 $ -$ 1$ 7 $ 874$ Accounts Receivable 20,389 9,222 8,960 21,523 65,928 17,979 144,001 Due from Other Governments - 877 152 - 76,755 15,717 93,501 Lease Receivable - 342 125,853 - - 1,935 128,130 Other Noncurrent Receivables - - - - 24,019 - 24,019 Total Receivables 20,409 10,445 135,807 21,523 166,703 35,638 390,525 Less: Allowance for Receivables (3,024) (1,181) (1,042) - (310) (6,506) (12,063) Net Receivables 17,385$ 9,264 $ 134,765$ 21,523$ 166,393$ 29,132$ 378,462 $

Lease receivable amount represents various lease ag reements as described in Note 10 to the basic financial statements.

Other noncurrent receivables had a balance of $230.1 million for governmental activities as of September 30, 2022. This amount primarily cons ists of $146.5 million for Home Investments Partnerships Program (HOME) loan program reim bursements from the Department of Housing and Urban Development (HUD) and $75.4 million for Community Development Block Grant (CDBG) loan distribution from developers.
64 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 5 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The composition of interfund balances as of September 30, 2022 is as follows (in thousands):

Nonmajor
Governmental Gas Water
General Funds Utility Utility
Payable - Due From:

General -$ 107$ 3$ -$ General Capital Projects 1 - - - Nonmajor Governmental 21,254 469 7 14 Gas Utility 800 - - - Water Utility 543 - - - Tidelands Operating 203 - - - Tideland Oil Revenue 14 - - - Harbor 273 484 - 87 Nonmajor Proprietary 101 1 - - Internal Service 3,313 - - - Total Due To 26,503$ 1,061$ 10$ 101$ Receivable - Due To:

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

General 22$ -$ 383$ 6,853$ 7,368 $ General Capital Projects - - - 152 153 Housing Assistance Special Revenue - - - 84 85 Nonmajor Governmental - 751 - 1,026 23,521 Gas Utility - - - 375 1,175 Water Utility - - - 445 988 Tidelands Operating - - - 492 695 Tideland Oil Revenue - - - 65 79 Harbor 23,979 - - 4,092 28,915 Nonmajor Proprietary - - - 789 891 Internal Service - - - 997 4,310 Total Due To 24,001$ 751$ 383$ 15,370$ 68,180 $ Receivable - Due To:

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

General -$ 21,832$ 21,832 $
Nonmajor Governmental 3,809 - 3,809 Harbor - 3,587 3,587
Total Advances To 3,809 $ 25,419 $ 29,228 $
Receivable - Advances To:

65 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Due to / Due from Other Funds
The General Fund has provided $21.3 million to various grant funds to cover operating expenses prior to receipt of reimbursements, with the largest amount owed by the Health Fund as a result of pending reimbursements from the Federal Emergenc y Management Agency (FEMA) for COVID-19 costs.

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 2022 operating revenues is $24.0 million and will be paid in fiscal year 2023.

The General Fund recorded a total due to In ternal Service Funds of $6.9 million. This amount 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 for amounts that will be repaid usually with interest over an extended period of time.

In fiscal year 2001, the Housing Development F und 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, 2022.

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, 2022 is $5.1 million, of which $3.6 million is long-term and $1.5 million is current.

In fiscal year 2022, the Fleet Services Fund entered into a loan with the General Fund in the amount of $21.8 million, for the General Fund to reimburse the Water Fund $21.8 million pursuant to the outcome of Measure M litigation. The term of the interfund loan is 10 years with an interest only payment in the amount of $436 thousand in fiscal year 2023, and both principal and interest payments beginning in fiscal year 2024. Annual principal payments from fiscal year 2024 through 2032 will be $2.4 million, payable on the anniversary date of the loan. The General Fund will pay simple interest to the Fleet Services Fund based on the rate earned by the pooled cash investment portfolio.

66 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Interfund Transfers
The City regularly executes transfers from one fund to another, such as for the reimbursement of services. At September 30, 2022, interfund transfers are as follows (in thousands):

General Nonmajor Nonmajor Internal Total
Capital Governmental Gas Tidelands Proprietary Service Transfers General Projects Funds Utility Operating Harbor Funds Funds Out Transfers Out:

General -$ 44,097$ 7,477$ -$ 1,252$ -$ -$ 6,609$ 59,435$ General Capital Projects 245 - 243 4,233 834 - - - 5,555 Nonmajor Governmental 49,743 902 462 - 504 307 - 84 52,002 Gas Utility 16,976 366 50 - - - 23 25 17,440 Tideland Oil Revenue - - - - 33,799 - - - 33,799 Harbor - 257 996 - 23,979 - - 981 26,213 Nonmajor Proprietary - 914 50 - - - - 122 1,086 Internal Service Funds 10,674 - - - - - - - 10,674 Total Transfers In 77,638$ 46,536 $ 9,278$ 4,233 $ 60,368 $ 307$ 23$ 7,821$ 206,204$ Transfers In:

Significant transfers include the following:

The General Fund transferred $44.1 million to the General Capital Projects funds to fund various capital projects. Of this amount, $28.0 million was City Measure A funds.

The General Fund transferred a total of $7.5 million to non-major governmental funds in fiscal year 2022. Of this amount, $6.8 million was transferred to the General Debt Service Fund for debt service payments and fiscal agent fees.

Non-major Governmental Funds transferred $49.7 million to the General Fund. Of this amount, $48.9 million was transferred from the General Grants Fund for eligible expenditures funded by the American Rescue Plan Act, consisting of $29.0 million for Police Department personnel expenditures and $19.9 million for Parks and Recreation program expenditures.

The Internal Service Funds transferred $10.7 million to the General Fund. Of this amount, the Employee Benefit Fund transferred $6.9 million to the General Fund for pension unfunded liability payments.

The Harbor transferred $24.0 million to the Tidelands Operating Fund as allowed by the City Charter.

The Tidelands Oil Revenue Fund transferred $33.8 million under the optimized water flood program to the Tidelands Operating Fund.

The Gas Fund transferred $17.0 million 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 audited annual gross revenue.
67 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 6 – CAPITAL ASSETS
Capital asset activity for governmental activity for the year ended September 30, 2022 is as follows (in thousands):

Balance at Balance at
October 1, September 30
Governmental Activities: 2021 Increase Decrease Transfers 2022 Capital Assets not being Depreciated/Amortized:

Land 225,112$ -$ (1,663)$ -$ 223,449$ Rights-of-way 81,340 - - - 81,340 Construction In Progress 62,905 11,957 - (343) 74,519 Total Capital Assets not being Depreciated/Amortized 369,357 11,957 (1,663) (343) 379,308 Capital Assets being Depreciated/Amortized:

Buildings 588,563 - - - 588,563 Improvements Other than Buildings 158,385 - 343 158,728 Infrastructure 430,415 - - - 430,415 Machinery and Equipment 94,862 4,659 (1,552) - 97,969 Vehicles and Aircraft 143,355 11,699 (7,443) - 147,611 Software and Patents 37,808 1 - - 37,809 Total Capital Assets being Depreciated/Amortized 1,453,388 16,359 (8,995) 343 1,461,095 Less Accumulated Depreciation/Amortization for:

Buildings (155,392) (14,551) - - (169,943) Improvements Other than Buildings (91,785) (5,584) - - (97,369) Infrastructure (365,619) (8,926) - - (374,545) Machinery and Equipment (54,697) (9,020) 1,547 - (62,170) Vehicles and Aircraft (84,774) (13,074) 7,306 - (90,542) Software and Patents (19,257) (1,755) - - (21,012) Total Accumulated Depreciation/Amortization (771,524) (52,910) 8,853 - (815,581) Total Capital Assets being Depreciated/Amortized, Net 681,864 (36,551) (142) 343 645,514 Governmental Activities Capital Assets, Net 1,051,221$ (24,594)$ (1,805)$ -$ 1,024,822$

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

General Government 19$
Public Safety 3,363
Public Health 984
Community and Cultural 4,849
Public Works 12,003
Capital Assets held by City's internal services funds allocated to various 31,692
Total governmental activities depreciation/amortization 52,910$ functions on a prorated basis based on their usage of the assets

68 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
Capital asset activity for business-type activities for the year ended September 30, 2022 is as follows (in thousands):

Balance at Balance at
October 1, September 30,
Business-type Activities: 2021 Increase Decrease Transfers 2022 Capital Assets not being Depreciated/Amortized:

Land 1,376,585$ 65,504$ (8,007)$ -$ 1,434,082$ Rights-of-way 203,304 - - - 203,304 Water Rights 40 - - - 40 Historic Collections 3,442 - - - 3,442 Construction In Progress 602,338 274,777 (6,456) (295,733) 574,926 Total Capital Assets not being Depreciated/Amortized: 2,185,709 340,281 (14,463) (295,733) 2,215,794 Capital Assets being Depreciated/Amortized:

Buildings 4,413,633 - (3,890) 65,719 4,475,462 Improvements Other than Buildings 740,663 - - 23,580 764,243 Infrastructure 2,644,070 - (1,529,593) 193,182 1,307,659 Machinery and Equipment 240,034 949 (1,180) 232 240,035 Vehicles and Aircraft 107,247 1,004 (1,512) 11,671 118,410 Software and Patents 30,146 - - 1,349 31,495 Total Capital Assets being Depreciated/Amortized 8,175,793 1,953 (1,536,175) 295,733 6,937,304 Less Accumulated Depreciation/Amortization for:

Buildings (2,406,422) (162,248) 3,650 - (2,565,020) Improvements Other than Buildings (409,425) (26,748) - - (436,173) Infrastructure (784,835) (39,939) 42,478 - (782,296) Machinery and Equipment (209,495) (7,681) 1,027 - (216,149) Vehicles and Aircraft (34,664) (3,546) 1,512 - (36,698) Software and Patents (24,603) (1,498) - - (26,101) Total Accumulated Depreciation/Amortization (3,869,444) (241,660) 48,667 - (4,062,437) Total Capital Assets being Depreciated/Amortized, Net 4,306,349 (239,707) (1,487,508) 295,733 2,874,867 Business-type Activities Capital Assets, Net 6,492,058$ 100,574$ (1,501,971)$ -$ 5,090,661$

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

Gas Utility 7,695$
Tidelands Operating 20,691
Tideland Oil Revenue 916
Harbor 179,770
Water Utility 13,784
Nonmajor Business-type Funds:

Sewer Utility 2,787
Solid Waste Management 777
Airport 15,231
Development Services 9
Total Business-type Activities Depreciation 241,660$

69 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 7 – CHANGES IN LONG-TERM LIABILITIES

Changes in long-term liabilities for the year ended September 30, 2022 are as follows (in thousands):

Balance at Balance at Due
October 1, September 30, Within
Governmental Activities: 2021 Additions Reductions 2022 One Year Bonds Payable:

Revenue Bonds 69,450$ 41,140$ (49,305)$ 61,285$ 7,465$ Tax Allocation Bonds 171,990 - (16,080) 155,910 19,655 Plus (Less) Unamortized Amounts:

Premium 16,763 2,123 (4,162) 14,725 - Total Bonds Payable 258,203 43,263 (69,547) 231,920 27,120 Notes, Loans and LOC Payable 7,569 142 (478) 7,233 599 Financed Purchase Obligations
1 38,943 18,538 (10,413) 47,068 10,841 Police and Fire Annuities 4,436 - (1,027) 3,409 - Estimated Oil Field Abandonment Costs 23,070 3,860 - 26,930 - Environmental Remediation 4,276 99 (378) 3,997 3,512 Accrued Self-Insured Claims 176,385 25,779 (22,459) 179,705 32,599 Accrued Employee Benefits 172,596 513 - 173,109 59,665 Total OP EB Liability 6,730 - (3,574) 3,156 - Net P ension Liability 375,696 590,516 - 966,212 - Community Hospital-Seismic Work 24,000 - (1,000) 23,000 1,000 Other LT Obligations-Civic Center 289,765 - (5,189) 284,576 5,280 Total, Governmental Activities 1,381,669$ 682,710$ (114,065)$ 1,950,315$ 140,616$ Business-Type Activities:

Bonds Payable:

Revenue Bonds 1,490,185$ 142,590$ (222,650)$ 1,410,125$ 73,775$ Plus (Less) Unamortized Amounts:

Premium 110,210 14,220 (14,833) 109,597 - Discount (13) - 13 - - Total Bonds Payable 1,600,382 156,810 (237,470) 1,519,722 73,775 Notes, Loans and LOC Payable 545,309 19,000 (51,102) 513,207 2,270 Financed Purchase Obligations
1 32,943 - (2,838) 30,105 2,925 Due to State of California 5,825 4,588 (5,825) 4,588 4,588 Estimated Oil Field Abandonment Costs 110,300 16,780 - 127,080 - Fair Value of Derivative 10,079 2,037 (10,079) 2,037 - Environmental Remediation 2,600 3,309 - 5,909 - Accrued Claims Liability 450 5,300 (2,000) 3,750 3,750 Accrued Employee Benefits 52,523 1,917 - 54,440 18,152 Total OP EB Liability 2,055 - (1,046) 1,009 - Net P ension Liability 152,179 187,024 - 339,203 - Site Restoration 1,000 - - 1,000 - Total, Business-Type Activities 2,515,645$ 396,765$ (310,360)$ 2,602,050$ 105,460$ 1 Beginning balance was reclassified as a result of GASB Statement No. 87 implementation.

For governmental activities, the General Fund, other governmental funds, and Internal Service funds have been used to liquidate accrued claims liability, accrued employee be nefits, litigation, and self-insurance. Pension and OPEB liabilities are paid out of operating funds based on a percentage of covered payroll. 70 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 8 – BONDS PAYABLE
At September 30, 2022, bonded indebtedness consisted of the following (in thousands):

Authorized Outstanding
Date Final Range of and September 30,
Issued Maturity Interest Rates Issued 2022

GOVERNMENTAL ACTIVITIES
2016 Courthouse Demolition 01/13/16 08/01/26 2.00% - 5.00% 13,150 $ 5,870$ FALB2019A PS Parking Garage 05/22/19 08/01/39 3.00% - 5.00% 9,245 8,405 FALB2019B Lease Rev Ref Bonds 05/22/19 08/01/31 5.00% 13,350 10,485 FALB 2022 Lease Rev Ref Bonds 05/18/22 08/01/31 5.00% 25,411 22,604 Premium/Discount - 4,098
Subtotal, General City Bonds 61,156 51,462
TAX ALLOCATION BONDS:
2002B West Long Beach Industrial Project 12/05/02 11/01/22 2. 25% - 5.50% 21,860 2,675 2002B Downtown Project 12/05/02 11/01/22 2.25% - 5.50% 25,920 5,395 2005C Downtown Project 02/01/06 08/01/24 3.25% - 5.50% 7,900 1,555 2005C North Long Beach Project 02/01/06 08/01/31 3.25 % - 5.50% 27,145 14,030 2015AB SA 06/23/15 08/01/40 4.00% - 5.00% 155,820 114,130 2021 SA Lease Revenue Bonds 02/11/21 08/01/39 3.00% - 4.00% 19,765 18,125 Premium/Discount - 9,430
Subtotal, Tax Allocation Bonds 258,410 165,340
INTERNAL SERVICE FUND BONDS:
2022 FALB 05/18/22 08/01/31 5.00% 15,729 13,921 Premium/Discount - 1,197
Subtotal, Internal Service Fund Bonds 15,729 15,118 Total, Governmental Activities 335,295$ 231,920$
(continued)
Description

71 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Authorized Outstanding
Date Final Range of and September 30,
Issued Maturity Interest Rates Issued 2022

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$ 461,510$ 2007B Natural Gas Purchase 10/18/07 11/15/33 4.90% - 5.07% 251,695 69,005 Premium/Discount - 9,000
Subtotal, Gas Utility Bonds 887,360 539,515
Tidelands Fund:
2015 Marina 06/03/15 05/15/45 4.00% - 5.00% 114,015 106,195 2016 Rainbow 07/26/16 08/01/23 3.00% - 5.00% 19,115 3,020 2017A Tidelands 11/01/17 11/01/27 1.35% - 2.55% 10,190 7,775 2017B Tidelands 11/01/17 11/01/27 1.79% - 3.49% 17,705 9,540 2022 Tidelands 09/14/22 11/01/29 5.00% 32,090 32,090 Premium/Discount - 8,691
Subtotal, Tidelands Bonds 193,115 167,311
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 7,040 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 34,165 Premium/Discount - 79,812
Subtotal, Harbor Bonds 680,725 673,087
Water Utility Fund:
2010A Water 09/15/10 05/01/24 3.00% - 5.00% 22,740 5,660 2012 Water 08/30/12 05/01/27 2.00% - 5.00% 9,850 3,985 Premium/Discount - 363
Subtotal, Water Utility Bonds 32,590 10,008
Non-Major Enterprise Funds:
2022A Airport 06/01/22 06/01/40 5.00% 47,505 47,505 2022B Airport 06/01/22 06/01/40 5.00% 32,855 32,855 2022C Airport 06/01/22 06/01/40 5.00% 30,140 30,140 2016 Sewer 08/24/16 05/01/36 4.00% - 5.00% 9,830 7,570 Premium/Discount - 11,731
Subtotal, Non-Major Enterprise Bonds 120,330 129,801 Total, Business-Type 1,914,120 1,519,722
Grand Total, Primary Government Bonds Payable 2,249,415$ 1,751,642$ Description

72 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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
5,865$ 19,655 $ 1,600$ 27,120$ 10,293$ 37,413$ 6,152 17,625 1,693 25,470 8,918 34,388 6,442 7,475 1,788 15,705 7,773 23,478 6,727 7,880 1,883 16,490 7,101 23,591 4,279 8,245 1,996 14,520 6,348 20,868 2028 - 2032 13,679 44,790 4,961 63,430 21,355 84,785 2033 - 2037 2,920 34,995 - 37,915 7,860 45,775 2038 - 2042 1,300 15,245 - 16,545 1,237 17,782 47,364 155,910 13,921 217,195 70,885 288,080 4,098 9,430 1,197 14,725 - 14 ,725 Totals 51,462$ 165,340 $ 15,118 $ 231,920$ 70,885$ 302,805 $ Ending
2027
2023
2024
2025
2026
Subtotal
Premium /
Discount
Year
Governmental Funds Internal
Service Funds
Annual Debt Service Requirements

Refunding of Debt
In November 2012, the City issued $69.7 million in Long Beach Bond Finance Authority (LBBFA) bonds consisting of $54.6 million in 2012 Series A Lease Revenue Refunding Bonds (the “2012 Series A Bonds”) and $15.1 million Series B Taxable Lease Revenue Refunding Bonds. The 2012 Series A Bonds were issued to (a) refinance the costs of the acquisition, construction, installation and equipping of certain public capital improvements, (b) refund the outstanding 1998 Series B Temple and Willow Facility Bonds, (c) refund the 2001 Plaza Parking Facility Lease Revenue Bonds, (c) refund the outstanding 2002 Public Safety Facilities Projects L ease Revenue Bonds, and (d) advance refund the outstanding 2005 Temple and Willow Facility Refinancing Project Lease Revenue Bonds, and (e) pay a portion of the costs of issuance of the Bonds. Th e 2012 Series A Bonds have fixed interest rates ranging from 4.0 percent to 5.0 percent with an average of 4.8 percent. The 2012 Series A Bonds are secured by a pledge of and lien on the revenues consisting primarily of lease payments.

In May 2022, the Finance Authority of Long Beach (FALB) issued $41.1 million Lease Revenue Bonds, Series 2022. The 2022 FALB Lease Revenue Bonds were issued to (a) refund the outstanding LBBFA 2012 A Bonds, (b) reimburse the City for costs related to the City’s Public Safety Garage, and (c) pay costs of issuance of the FALB Series 2022 Bonds. The FALB Series 2022 interest rate range is 5.0 percent with debt service beginning in August 2022 through August 2031.

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 2012 Series A Bonds.

Accordingly, the refunded 2012 Series A Bonds were considered to be defeased and the liabilities for those bonds were removed from the government-w ide statement of net position – governmental activities.
73 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Specific disclosures related to the refunding issue are as follows (in thousands):

Proceeds of refunding bonds issued 39,670$
Premium 3,279
Cost of issuance (473)
Deposit to escrow 42,476$
Net present value savings (economic gain) 2,689$

For the refunding transaction, the net carrying amount of the refunded debt of $42.4 million was less than the reacquisition price by $62 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 re venues 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, 2022, total principal and interest requirement for the bonds is $210.9 million ($156 million for principal and $54.9 million for interest), payable semiannually through 2040. For the current year, tax increment revenues received and total debt service paid were $ 29.8 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 18,645$ 11,615$ 37,090$ 3,450$ 2,975$ 73,775$ 69,438$ 143,213$ 21,655 9,675 38,945 3,720 3,585 77,580 66,620 144,200 25,280 10,130 32,000 795 3,760 71,965 62,818 134,783 19,195 8,735 33,525 820 3,945 66,220 59,351 125,571 25,175 9,195 30,050 860 4,130 69,410 55,880 125,290 2028 - 2032 126,110 33,855 86,900 - 23,900 270,765 233,807 504,572 2033 - 2037 217,700 23,530 90,615 - 29,545 361,390 167,527 528,917 2038 - 2042 76,755 30,025 115,775 - 23,735 246,290 71,335 317,625 2043 - 2047 - 21,860 96,850 - 22,495 141,205 26,400 167,605 2048 - 2052 - - 31,525 - - 31,525 2,383 33,908 530,515 158,620 593,275 9,645 118,070 1,410,125 815,559 2,225,684 9,000 8,691 79,812 363 11,731 109,597 - 109,597 539,515$ 167,311$ 673,087$ 10,008$ 129,801 $ 1,519,722 $ 815,559 $ 2,335,281$ 2027
Ending
2023
2024
2025
2026
Major Funds
Annual Debt Service Requirements
Enterprise Funds
Subtotal
Premium /
Discount
Totals
Year

74 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Current Refunding of Debt
In June 2022, the City of Long Beach issued City of Long Beach, California Senior Airport Revenue Refunding Bonds, $ 47.5 million Series 2022A Bonds, 32.9 million Se ries 2022B Bonds, and 30.1 million Series 2022C Bonds. The Series 2022 Bonds are being issued (a) to pay the cost of certain capital improvements at the Airport; (b) together with other available funds, to current fund and defease all of the City’s outstanding Senior Ai rport Revenue Bonds, Series 2009C, Senior Airport Revenue Bonds, Series 2010A and Senior Airport Revenue Bonds, Series 2010B and, together with the Series 2009C Bonds and the Series 2010A Bonds, the “Refunded Bonds”); (c) to fund a reserve fund for the Series 2022 Bonds; and (d) to pay the costs of issuance of the Series 2022 Bonds, including the premium for a municipal bond insurance policy insuring the Series 2022 Bonds. The interest rates range from 5.0 percent to 5.25 percent. Interest on the Series 2022 Bonds will be payable on June 1 and December 1 of each year, commencing December 1, 2022. Principal payments are due June 1, commencing on June 1, 2023.

A portion of the proceeds of the Series 2022A Bo nds and the Series 2022B Bonds, together with other available moneys, will be used to current refund and defease 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 governmental activities. A portion of the proceeds of Series 2022A Bonds and Series 2022B Bonds , together with certain available moneys of the City will be deposited into Senior Reserve Fund. Specific disclosures related to the refunding issue are as follows (in thousand)
Senior Airport
Rev Bonds
Series 2022A
Senior Airport
Rev Bonds
Series 2022B
Proceeds
Proceeds of refunding bonds issued 47,505$ 32,855$ Bonds Premium 5,022 3,459
Amounts available from Refunded Bonds 6,629 4,500 Cost of issuance (484) (340)
Reserve for Debt Service Fund (3,727) (2,576) Deposit in Escrow 54,945$ 37,898$
Net Present Value Savings (economic gain) 5,918$ 3,596$

For the refunding transactions of the Series 2022A Bonds and the Series 2022B Bonds, the net carrying amount of the refunded debt of $54.9 million was less than the reacquisition price by $240 thousand, and the refunded debt of $ 37.9 million was less that the reacquisition price by $114 thousand, respectively. These amounts were amor tized for governmental activities and has been reported as interest expense in the accompanying basic financial statements.

In September 2022, the City of Long Beach i ssued $ 32.0 million Series 2022 Tidelands Revenue Refunding Bonds. The Series 2022 Bonds are being issued to (a) together with other available funds, refund all of the currently outstanding Long Beach Bond Finance Authority 2012 Refunding Revenue Bonds (Aquarium of the Pacific Project), which are currently outstanding in the principal amount of $58.4 million; (b) pay the cost of a municipal bond debt service reserve insurance policy to be issued by Assured Guaranty Municipal Corp.; and (c) pa y the costs of issuance of the Series 2022 Bonds, including the premium for a municipal bond insurance policy insuring the scheduled payments of principal of and interest on the Series 2022 Bonds maturing on November 1, 2026 through November 75 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

1, 2029, both dates inclusive, to be issued by Assured Guaranty Municipal Corp. The Series 2022 Bonds bear interest rate at 5.0 % payable semi-annually on May 1 and November 1 of each year, commencing November 1, 2022.

Proceeds of refunding bonds issued 32,090$
Premium 3,243
Available Amounts from Refunding Bonds 9,228
Additional Contributions 15,560
Cost of Issuance (576)
Deposit to Escrow 59,545$
Net Present Value Savings (economic gain) 6,843$

For the refunding transaction of the Series 2022 Tidelands Revenue Refunding Bonds, the net carrying amount of the refunded debt of $59.5 million was less than the reacquisition price by $1.1 million. This amount was fully amortized for governmental activities and has been reported as interest expense in the accompanying basic financial statements.

Special Assessment Debt
The City serves as the facilitating agent for a number 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, 2022, 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: 4.85% – 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, 2022: $41,460,000 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 5.375 percent to 5.75 percent.

76 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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 de bt 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 remaining two term bonds will mature in October 2026 and October 2032 with an interest rate of 6.25 percent and 6.3 percent, respectively.

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 record ed in the City’s books. The remaining two term bonds will mature in September 2026 and September 2037, both with an interest rate of 5.25 percent.

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 5.0 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 Ob ligation 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 4.85 percent to 5.5 percent.

Such bonds described above do not constitute inde btedness 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 necessa ry. 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 Carnival 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. 77 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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, 2022, the City’s Conduit Debt outstanding consisted of the following (in thousands):

Outstanding at
Final Amount September 30,
Maturity Authorized 2022
Carnival Bonds 2030 30,000$ 17,965$
Grisham Housing Bonds Series A 2035 10,245 899
40,245$ 18,864$
Description
Total Conduit Debt

78 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 9 – NOTES, LOANS PAYABLE AND OTHER LONG-TERM OBLIGATIONS At September 30, 2022, the City had notes, loans payable and other long-term obligations, consisting of the following (in thousands):

Range of Authorized Outstandin g at
Date Fina l Interest and September 30,
Issued Maturit y Rates Issued 2022

GOVERNMENTAL ACTIVITIES
NOTES, LOANS AND LINES OF CREDIT PAYABLE:

General Fund:

Southern California Edison 12/08/17 05/25/25 2.11% 396$ 155$ Southern California Edison 01/09/18 02/25/25 2.18% 877 328 Southern California Edison 05/08/18 10/23/24 2.69% 869 192 Southern California Edison 01/31/19 02/27/27 2.37% 715 411 Premium/Discount - 39
Total General Fund 2,857 1,125
Successor Agency Fund:

Los Angeles County 01/21/92 N/A 3.75% - 6,108 OTHER LONG-TERM OBLIGATIONS:

General Fund:

Police and Fire Annuity N/A N/A N/A 37,600 3,409 MWN Community Hospital N/A N/A N/A 25,000 23,000 Total General Fund 62,600 26,409
General Services Fund:

Financed Purchase Obligations Various Various 0.87% - 3.82% 51,829 27,692 Fleet Services Fund:

Financed Purchase Obligations Various Various 1.91% - 2.94% 25,720 19,376 Civic Center Fund:

New Civic Center Complex N/A N/A N/A 300,702 284,576 443,708$ 365,286$

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

Gas Utility Fund:

Financed Purchase Obligations 08/03/15 05/01/30 2.40% 18,000 $ 10,333$ Water Fund:

Financed Purchase Obligations 12/20/18 12/20/33 3.35% 27,394 19,587 Water 2022 Line of Credit 08/04/22 N/A N/A 14,000 14,000 Total Water Fund 41,394 33,587
Tidelands Fund:

Financed Purchase Obligations 10/01/05 10/01/25 4.99% 649 185 State of Calif DBAW - Lighthouse 06/23/00 08/01/30 4.50% 700 281 Total Tidelands Fund 1,349 466
Harbor Fund:

Harbor 2021 TIFIA Loan 05/03/21 05/15/55 1.26% 495,000 498,926 OTHER LONG-TERM OBLIGATIONS:

Water Fund:

Site Restoration N/A N/A N/A 1,000 1,000
556,743$ 544,312$
Description
Total, Governmental Activities
Total, Business-Type Activities

79 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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, 2022 totaled $23.0 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, 2022 totaled $6.1 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, 2022 totaled $1.1 million.

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

General Successor
Year ending Fund Agency Principal Interest Total
457$ 142$ 599$ 20$ 619$ 301 - 301 11 312 191 - 191 5 196 96 - 96 2 98 41 - 41 - 41 2028 - 2032 - - - 1 1 2033 - 2037 - 5,966 5,966 - 5,966 1,086 6,108 7,194 39 7,233 39 - 39 - 39 Total 1,125$ 6,108$ 7,233$ 39$ 7,272$ Premium/Discount
Governmental Activities
Annual Debt Service Requirements
Subtotal
2023
2024
2025
2026
2027

Financed Purchase Obligations
As a result of GASB Statement No. 87 implementation, the City reclassified capital lease obligations to financed purchase obligations, where the asset transfers ownership to the City by the end of the agreement. The City entered into various di rect borrowing agreements with lenders to finance the acquisition of governmental assets including computers, technology equipment, machinery, and vehicles for City staff and operations. Repayments are secured from revenues of the General Services Internal Service Fund and the Fleet Internal Service Fund, which primarily come from billing revenues from other City departments. The General Fund primarily benefits from the finance purchased assets.

80 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
During fiscal year 2022, the City executed new obligations for equipment and vehicles, where the asset transfers ownership to the City by the end of the agreement. Under various agreements with different entities, the obligations totaled $0.6 million to be paid over terms ranging from 5 to 7 years at rates between 1.57% to 2.50%.

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

General Fleet
Services Services Principal Interest Total
7,605$ 3,236$ 10,841$ 1,168$ 12,009$ 3,244 3,151 6,395 952 7,347 3,050 2,018 5,068 805 5,873 2,896 1,970 4,866 675 5,541 2,270 2,015 4,285 549 4,834 2028 - 2032 8,459 6,986 15,445 1,069 16,514 2033 - 2037 168 - 168 2 170 27,692$ 19,376$ 47,068$ 5,220$ 52,288$ 2023
Year ending
Totals
2024
2025
2026
2027
Governmental Activities
Principal Payments by Fund Annual Debt Service Requirements

Other Long-term Obligation - New Civic Center Complex
During fiscal 2016, the City entered into a multi-party Public-Private Partnership agreement (P3) with Plenary-Edgemoor Civic Partners (PECP). The Project comprises two components; a City project consisting of a new City Hall, new Main Library a nd 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.

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 costs of the Project Assets and a Variable Growth Fee attributable primarily to operation an d 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.

81 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
Payments relating to these activities over the next five years will be made as follows (in thousands):

Base Variable Harbor
Principal Interest Sub Total Growth Fee Total
5,280$ 4,919$ 10,199$ 8,680$ 675$ 19,554$ 5,373 4,827 10,200 8,922 675 19,797 5,467 4,732 10,199 9,170 675 20,044 5,563 4,636 10,199 9,423 675 20,297 2027 - 2031 29,319 21,679 50,998 51,106 3,374 105,478 2032 - 2036 31,987 19,011 50,998 58,313 3,353 112,664 2037 - 2041 34,898 16,099 50,997 66,341 3,478 120,816 2042 - 2046 38,075 12,923 50,998 75,284 5,943 132,225 2047 - 2051 41,540 9,458 50,998 85,243 5,095 141,336 2052 - 2056 45,321 5,677 50,998 96,338 4,328 151,664 2057 - 2061 41,753 1,596 43,349 89,700 3,258 136,307 284,576$ 105,557$ 390,133$ 558,520 $ 31,529 $ 980,182$ 2026
2024
2025
Payments
Year
2023

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 Interest Total
30$ 2,240$ 2,270$ 6,299$ 8,569$ 31 2,350 2,381 6,278 8,659 33 2,415 2,448 6,230 8,678 34 2,500 2,534 6,207 8,741 36 2,565 2,601 6,174 8,775 2028 - 2032 117 14,330 14,447 30,342 44,789 2033 - 2037 - 28,356 28,356 29,278 57,634 2038 - 2042 - 52,171 52,171 26,713 78,884 2043 - 2047 - 97,777 97,777 22,970 120,747 2048 - 2052 - 174,519 174,519 14,289 188,808 2053 - 2057 - 119,703 119,703 3,048 122,751 281 498,926 499,207 157,828 657,035 - - - - - Totals 281$ 498,926$ 499,207$ 157,828$ 657,035$ Business-Type Activities
Principal Payments Annual Debt Service Requirements
Premium / Discount
2023
2024
2025
2026
2027
Subtotal

82 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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.

In May 2020, Harbor entered into a revised new TIFIA loan agreement (the 2020 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 repaymen t 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 one year after substantial completion of the replacement bridge that was retroactively declared in December of 2020. As of September 30, 2022, Harbor has made three draws on the TIFIA Loan in the total amount of $500.0 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%.

Financed Purchase Obligations
The City entered into multiple direct borrowing agreements with lenders to finance the installation of a surface membrane to the Convention Center r oof and for the implementation of an Advanced Metering Infrastructure (AMI). Repayments are secured from charges for services of the Tidelands Operating Fund for the Convention Center finan ced purchase obligations, and from charges for services of the Water Fund and the Gas Utility Fund for the AMI financed purchase obligations.

Annual debt service requirements to maturity for business-type activities financed purchase obligations are as follows (in thousands):

Gas Utility Water
Tidelands
Operating Principal Interest Total
1,186$ 1,696$ 43$ 2,925 $ 880$ 3,805$ 1,215 1,753 45 3,013 792 3,805 1,244 1,813 47 3,104 701 3,805 1,274 1,875 50 3,199 607 3,806 1,305 1,938 - 3,243 510 3,753 2028 - 2032 4,109 10,512 - 14,621 1,076 15,697 Totals 10,333$ 19,587$ 185$ 30,105 $ 4,566$ 34,671$ Annual Debt Service RequirementsPrincipal Payments by Fund 2027
Business-type Activities
2023
2024
2025
2026
Year ending

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 10 – LEASES
The City is a lessor in various noncancelable leases of City-owned properties such as land and buildings. During fiscal year 2022, the City recognized $17.1 million in lease revenue and $6.5 million in interest revenue. The noncurrent portion of the City’s lease receivables for governmental activities and business-type activities are accounted for in the Other Noncurrent Receivables in the Statement of Net Position in the amount of $140.9 million and $125.4 million, respectively.

The following is a schedule of future minimum lease payment receipts on noncancelable leases as of September 30, 2022 (in thousands):

Year Ending
September 30,
Principal Interest Principal Interest
2023 5,542$ $ 3,412 2,752$ 2,835$ 2024 5,648 3,199 2,573 2,741 2025 5,812 2,983 2,327 2,655 2026 6,668 2,753 2,096 2,585 2027 6,885 2,509 2,109 2,519 2028-2032 25,695 9,497 10,703 11,663 2033-2037 17,816 7,472 9,105 10,366 2038-2042 21,653 5,661 9,998 9,403 2043-2047 23,735 3,573 11,450 8,289 2048-2052 26,986 1,176 11,177 7,146 2053-2057 - - 12,486 5,957 2058-2062 - - 14,373 4,602 2063-2067 - - 16,548 3,040 2068-2072 - - 6,371 1,782 2073-2077 - - 5,383 1,233 2078-2082 - - 8,679 566 Total 146,440$ 42,235$ 128,130$ 77,382$ Governmental Activities Business-type Activities

The following is the schedule of lease payment income for the fiscal year ended September 30, 2022(in thousands):

Governmental
Activities
Business-type
Activities
Minimum Lease Payments $ 8,954 5,534$
Variable Lease Payments 1,786 851
Total 10,740$ 6,385$

The minimum lease payment is a fixed amount based on the lease agreements. The variable lease payment is a percentage of revenue above a certain base for the asset development leases or a calculated percentage of the gross revenue less the minimum rent payment for the other leases.

Business-Type Activities
The City has various Harbor marine terminal leases that are considered regulated leases, at all times subject to federal, state, regional and municipal laws, ordinances and regulations (e.g., including but not limited to States Lands Commission and Federal Maritime Commission). These regulated leases are not included in the measurement of lease receivables, in accordance with the requirements of GASB Statement No. 87. The City recognized $400.4 million in lease revenue during fiscal year 2022 for these leases.

83 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 10 – LEASES
The City is a lessor in various noncancelable leases of City-owned properties such as land and buildings. During fiscal year 2022, the City recognized $17.1 million in lease revenue and $6.5 million in interest revenue. The noncurrent portion of the City’s lease receivables for governmental activities and business-type activities are accounted for in the Other Noncurrent Receivables in the Statement of Net Position in the amount of $140.9 million and $125.4 million, respectively.

The following is a schedule of future minimum lease payment receipts on noncancelable leases as of September 30, 2022 (in thousands):

The following is the schedule of lease payment income for the fiscal year ended September 30, 2022(in thousands):

Governmental
Activities
Business-type
Activities
Minimum Lease Payments $ 8,954 5,534$
Variable Lease Payments 1,786 851
Total 10,740$ 6,385$

84 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 11 – DERIVATIVE INSTRUMENTS
At September 30, 2022, the City had the following hedging derivative instruments outstanding within business-type activities:

Various
Notional Effective Maturit y
Type Objective Amount 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 83.4 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.

MMBtu1

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 Bonds’ outstanding notional amounts to $69.0 million as follows:

Maturity
Date
Notional
Amounts
(in thousands) Variable Rate
11/15/2025 19,195$ 4.903% 3.926% 1.410%
11/15/2026 25,175 4.930% 3.946% 1.430%
11/15/2027 24,630 4.955% 3.966% 1.450%
11/15/2033 5 5.067% 4.066% 1.550%
69,005$ 4.931% 2 3.947% 3 1.432% 2
Synthetic
Fixed Rate Spread

2 Percentages are weighted average.
3 The weighted average floating rate is base d on the present value of 67% of the forward three-month LIBOR rate curve at September 30, 2022, 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.

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
The City also has various aeronautical leasing ag reements for land and hangar space at the Airport.

These qualify as regulated leases and are not included in the measurement of lease receivables, in accordance with the requirements of GASB Statem ent No. 87. The City recognized $6.8 million in lease revenue during fiscal year 2022 for these leases.

As of September 30, 2022, the minimum payments expected to be received over the remaining lease terms totaled $6.2 billion, as shown in the following table:

Year Ending
September 30, Harbor Airport Total
2023 398,947$ 6,925$ 405,872$
2024 403,983 6,467 410,450
2025 398,308 6,080 404,388
2026 391,993 6,097 398,090
2027 338,463 6,113 344,576
2028 - 2032 1,079,967 27,903 1,107,870
2033 - 2037 1,012,384 25,526 1,037,910
2038 - 2042 939,948 20,224 960,172
2043 - 2047 1,081,971 19,118 1,101,089
2048 - 2052 - 17,959 17,959
2053- 2057 - 9,820 9,820
2058 - 2062 - 7,057 7,057
2063 - 2067 - 7,057 7,057
2068 - 2072 - 5,302 5,302
2073 - 2077 - 4,668 4,668
2078 - 2082 - 4,668 4,668
2083 - 2087 - 1,674 1,674
Total 6,045,964$ 182,658$ 6,228,622$

85 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 11 – DERIVATIVE INSTRUMENTS
At September 30, 2022, the City had the following hedging derivative instruments outstanding within business-type activities:

MMBtu1

1 MMBtu is one million British Thermal Units.

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-y ear period 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 gas 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 $10.1 million on October 1, 2021. During the fiscal year ending September 30, 2022, the fair value increased by $8 million to a negative fair value of $2.0 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 $443.8 million on October 1, 2021. During the fiscal year, fair value decreased $148.9 million to a fair value of $294.9 million as of September 30, 2022. The fair value for th e 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):

Fair Value, Change Fair Value,
Maturity October 1, in Fair September
Date 2021 Value 2022
Interest Rate Swap
11/15/2025 (2,351)$ 1,967$ (384)$
11/15/2026 (3,643) 2,919 (724)
11/15/2027 (4,084) 3,156 (928)
11/15/2033 (1) 1 -
(10,079) 8,043 (2,036)
Commodity Swap
9/30/2037 443,833 (148,911) 294,922
Total 433,754$ (140,868)$ 292,886$

Information on the effects of these transactions on the financial statement presentation can be found in Note 20 to the basic financial statements.
87 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Credit Risks: As of September 30, 2022, 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 custodian role migrated first to Wells Fargo and most recently to Principal Custody Solutions.

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 A3 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, 2022, 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):

Fiscal Year
Ending Net Swap Total
September 30 Principal Interest Payments Interest
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 24,630 305 99 404
2028 - 2033 5 1 18 19 Total 69,005$ 11,340$ 892$ 12,232$ Variable-Rate Bonds

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.
88 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 12 – 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 comm on 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 availabl e reports that include 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 eligible 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, 2022, 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 30.58% 30.58% 30.58%
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 48.40% 48.40% 48.40%
Percentage of Eligible Compensation
Monthly benefits 2.4% to 3.0% 3.00% 2.0% to 2.7%
M iscellaneous
Safety

89 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
Employees Covered – Based on the June 30, 2021 funding valuation report, the following employees were covered by the benefit terms for each Plan:

Miscellaneous Safety
Active employees 3,565 1,231
Inactive employees or beneficiaries currently receiving benefits 4,690 1,869 Inactive employees entitled to but not yet receiving benefits 4,466 332

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 unfunded 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 liability is measured as of June 30, 2022 (measurement date), using the actuarial valuation report as of June 30, 2021 rolled forward using standard actuarial procedures. At September 30, 2022, the City reported net pension liability of $1.3 billion 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
Valuation Date (VD) June 30, 2021 June 30, 2021
Measurement Date (MD) June 30, 2022 June 30, 2022
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increase
Mortality
Entry Age Actuarial Cost Method
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 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post- retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Derived using CalPERS' membership data for
all funds

90 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
Long-Term Expected Rate of Return – The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations. Using historical returns of a ll of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

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

Assumed Asset
Allocation Real Return
1 Discount Rate – The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the di scount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from the City will be made at statutorily required rates, actua rially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

91 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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, 2021 (MD) 2,891,887$ 2,577,251$ 314,636$ Changes in the year:

Service Cost 50,653 - 50,653 Interest on Total Pension Liability 198,959 - 198,959 Differences between Actual and
Expected Experience (16,364) - (16,364) Changes in Assumptions 61,627 - 61,627 Contribution - Employer - 81,488 (81,488) Contribution - Employee - 21,568 (21,568) Net Inv estment Income - (193,818) 193,818 Administrative Expenses - (1,605) 1,605 Benefit Payments, including Refunds
of Employee Contributions (158,021) (158,021) - Net Changes 136,854 (250,388) 387,242 Balance at June 30, 2022 (MD) 3,028,741$ 2,326,863$ 701,878$ Increase (Decrease)

Total Pension Plan Fiduciary Net Pension
Safety Plan Liability Net Position Liability/(Asset)
Balance at July 1, 2021 (MD) 2,825,833$ 2,612,594$ 213,239$ Changes in the year:

Serv ice Cost 49,374 - 49,374 Interest on Total Pension Liability 194,259 - 194,259 Differences between Actual and
Expected Experience (31,255) - (31,255) Changes in Assumptions 68,729 - 68,729 Contribution - Employer - 71,361 (71,361) Contribution - Employee - 17,840 (17,840) Net Investment Income - (196,765) 196,765 Administrative Expenses - (1,627) 1,627 Benefit Payments, including Refunds
of Employee Contributions (145,304) (145,304) - Net Changes 135,803 (254,495) 390,298 Balance at June 30, 2022 (MD) 2,961,636$ 2,358,099$ 603,537$ Increase (Decrease)

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 6.90 percent, compared to a discount rate that is 1 percentage point lower (5.90%) or 1 percentage point higher (7.90%). Amounts shown below are in thousands:

Net Pension Liability/ (Asset) 1% Decrease
(5.90%)
Discount Rate
(6.90%)
1% Increase
(7.90%)
Miscellaneous 1,097,624$ 701,878$ 375,237$ Safety 1,003,338 603,537 275,860
92 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
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, 2022, the City recognized pension expense of $77.1 million and $77.3 million for the Miscellaneous and Safety Plan, respectively.

At September 30, 2022, the City reported pension related deferred outflows of resources and deferred inflows of resources from the following sources (in thousands):

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 M easurement Date 63,836$ -$ 54,356$ -$ 118,192$ -$ Differences Betw een Actual and
Expected Expe rie nce - (15,465) 903 (25,022) 903 (40,487) Changes in Assumptions 41,747 - 51,966 - 93,713 - N et Differences betw een
Projected and Actual Earnings
on Plan Investments 119,708 - 121,337 - 241,045 - Change in Proportion 8,703 (8,703) 1,425 (1,425) 10,128 (10,128) Total 233,994$ (24,168)$ 229,987$ (26,447)$ 463,981$ (50,615)$ Miscellaneous Plan: Safety Plan: Total

Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of changes to net pension liability to be recognized in future periods in a systematic and rational manner. Net difference between projected and actual earnings on pension plan investments are recognized in pension expense over a 5-year period and the other economic/demographic gains or losses and assumption changes or inputs are recognized over the expected average remaining service lifetime (EARSL) for all active and inactive members, which is 3.1 years as of measurement date of June 30, 2022.

The $118.2 million reported as deferred outflows of resources related to contributions made by the City subsequent to the measurement date of June 30, 2022 will be recognized as a reduction of the net pension liability in the year ending Sept ember 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of res ources related to pensions will be recognized as pension income as follows (in thousands):

Year Ending Year Ending Year Ending
September 30 Amount September 30 Amount September 30 Amount 2023 29,869$ 2023 28,240$ 2023 58,109$
2024 32,089 2024 27,146 2024 59,235
2025 10,117 2025 17,891 2025 28,008
2026 73,915 2026 75,907 2026 149,822
Total 145,990$ Total 149,184$ Total 295,174$ TotalMiscellaneous Plan: Safety Plan:

93 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 13 – 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 ge neral 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, 2022, the City accrued non-discounted estimates totaling $179.7 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 $20.8 million and a long-term liability of $111.8 million. The City has recorded in the General Liability Insurance Fund a current liability of $11.8 million and a long-term liability of $35.3 million.

The ultimate amount of losses incurred through September 30, 2022 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, 2022 and 2021 is as follows (in thousands):

Workers'
Compensation
Claims
General
Liability
Claims Total
Balance at October 1, 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 Additions 11,711 14,068 25,779
Payments (11,149) (11,310) (22,459)
Balance at September 30, 2022 132,642$ 47,063$ 179,705$ 94 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 14 – GOVERNMENTAL FUND BALANCES AND FUND DEFICITS
As of September 30, 2022, total fund balances for the City’s major and non-major governmental funds are as follows (in thousands):

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

Nonspendable:

Prepaid Expense and Deposits 1,632$ 1,489$ -$ 1,098$ 4,219$ Subtotal 1,632 1,489 - 1,098 4,219 Restricted for:

Debt Service - - - 32,069 32,069 Public Safety 2,921 - - 4,912 7,833 Public Health - - - 202 202 Community and Cultural - - 30,337 63,400 93,737 Public Works - 111,182 - 9,478 120,660 Subtotal 2,921 111,182 30,337 110,061 254,501 Committed to:

Community and Cultural - - - 1,200 1,200 Other Purposes - Emergency Reserve 47,764 - - - 47,764 Other Purposes - Operating Reserve 15,719 - - - 15,719 Oil Abandonment 14,228 - - - 14,228 Subtotal 77,711 - - 1,200 78,911 Assigned to:

Subsequent Year's Appropriations 113,091 - - - 113,091 Unfunded Liabilities and Commitments 35,495 - - - 35,495 Public Works - 88,422 - - 88,422 Subtotal 148,586 88,422 - - 237,008 Unassigned (Deficit) - - - (25,276) (25,276) Total Fund Balances 230,850$ 201,093$ 30,337$ 87,083$ 549,363$ Fund Deficits
The Gas Utility Fund, a major proprietary fund, reported a deficit net position of $4.5 million as of September 30, 2022. This deficit was primarily attributed to an increase of $17.9 million in the net pension liability. City management believes that the cash position of the fund is sufficient to support the utilities ongoing operations.

The Tidelands Oil Revenue Fund, a major proprietary fund, reported a deficit net position of $63.6 million as of September 30, 2022. Tidelands Oil Revenue Fund deficit net position is due to a future oil field abandonment liability of $127 million, reflecting an increase of $16.8 million during the fiscal year. The City will continue to accumulate resources to pay for the oil field abandonment liability.

The Towing Fund, a nonmajor enterprise fund, reported a deficit net position of $2.4 million as of September 30, 2022. This deficit primarily resulted from the recognition of a net pension liability of $4.2 million and compensated absences of $0.4 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, 2022, the Workers’ Compensation insurance fund reflected a deficit net position of $103.2 million. This deficit included the impact of accrued liabilities for Accrued Claims and Net Pension Liability of $111.8 million and $8.9 million respectively. City management believes the cash position is sufficient to cover the current costs related to workers’ compensation claims and current operating costs. 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.

95 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 14 – GOVERNMENTAL FUND BALANCES AND FUND DEFICITS
As of September 30, 2022, total fund balances for the City’s major and non-major governmental funds are as follows (in thousands):

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

Nonspendable:

Prepaid Expense and Deposits 1,632$ 1,489$ -$ 1,098$ 4,219$ Subtotal 1,632 1,489 - 1,098 4,219 Restricted for:

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

As of September 30, 2022, the General Liability insurance fund reflected a deficit net position of $46.4 million. This deficit included the impact of accrued liabilities for Accrued Claims and Net Pension Liability of $35.3 million and $5.8 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 15 – OIL FIELD ABANDONMENT LIABILITY
Tideland Oil Revenues
In 1911 the State of California (State) committed to the trusteeship of the City certain tidelands properties the City has been required to administer. 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 retain ed 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, 2022, the State’s total estimated abandonment cost liability is $939.7 million, which decreased by $26.7 million from fiscal year 2021. 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, 2022, and as provided for in Assembly Bill (AB) 137, the State has put aside and deposited approximately $300.0 million of the $939.7 million estimated liability into the State’s Oil Trust Fund - Abandonment Reserve. In the Tideland Oil fund, the abandonment reserve set aside for the estimated liability is $55.7 million.

At September 30, 2022, the Tideland Oil Fund recorded an estimated oil field abandonment cost liability of $127.1 million increasing by $16.8 million from fiscal year 2021. 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 $26.9 million of which $14.2 million has been funded in the Upland Oil Fund as of September 30, 2022.

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 th e interest accrues to the Reserve for Subsidence.

As of September 30, 2022, the reserve balance within the Subsidence Fund is $185.2 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 contribution to the State in both fiscal years 2005 and 2006. The City made the last payment during fiscal year 2022, and there is no outstanding loan balance at September 30, 2022. 96 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 16 – POLLUTION REMEDIATION OBLIGATIONS
The City is involved in several remediation actions to clean up pollution sites within its boundaries.

These matters generally coincide with the City’s ownership of land, buildings, and infrastructure assets.

In some cases, regulatory agencies (e.g., California State Water Resources Control Board, Regional Water Quality Board, State Department of Toxic Control) notified the City of the need for remedial action. In addition, the City conducts its own envi ronmental monitoring and this activity identifies pollution sites and matters requiring further investigation and possible remediation. Once the City is aware of these conditions, it commences monitoring, assessment, testing and/or cleanup activities, and recognizes a pollution remediation obligation when estimates can reasonably be determined. The pollution remediation obligation is an estimate and is subject to revision because of price increases or reductions, changes in technology, or changes in applicable laws or regulations. The types of pollution that have been identified include groundwater and soil contamination, leaking underground storage tanks, asbestos and lead paint contamination, methane gas detection, and excessive levels of other contaminants. Remediation efforts include conti nuous groundwater monitoring on a recurring semi- annual basis, developing remediation and feasibility studies, source identification studies, site testing, sampling and analysis, ground water cleanup, and remova l of storage tanks, asbestos tiles, and other hazardous materials.

As of September 30, 2022, the City’s estimated pollution remediation obligation totaled $9.9 million, which was comprised of $4.0 million related to governmental activities and $5.9 million related to business-type activities, respectively, as shown in the following table (in thousands):

Internal Total
Governmental Service Governmental
Funds Funds Activities
Governmental Activities:

Environmental Remediation:
55th Way Landfill 2,880$ -$ 2,880$ (formerly Paramount Landfill)
El Cortez (formerly El Ranchito) 320 - 320 Cowelco 197 - 197 Leaking Underground Storage Tanks - 600 600 Total Environmental Remediation 3,397$ 600$ 3,997$ Total
Business-Type
Harbor Activities
Business-type Activities:

Environmental Remediation:

Harbor Warehouse 5,909$ 5,909$
Total Environmental Remediation 5,909$ 5,909$ The estimated liability was determined by project managers, based on historical cost information for projects of the same type, size and complexity and measured at their current value. In subsequent periods, the City will adjust the estimated obligation when new information indicates that such changes are required. At this time, the City has deter mined there are no estimated recoveries reducing the obligation. The City has an Environmental Pollution Insurance Policy that may cover some costs for the period in question.

97 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022
NOTE 17 – INVESTMENT IN JOINT VENTURES
Intermodal Container Transfer Facility Joint Powers Authority (ICTF) The City’s Harbor Department and the Port of Lo s 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, 2022 totaled $2.2 million. The ICTF financial statements for the year ended June 30, 2022 can be obtained from the Harbor.

NOTE 18 – 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 investor. The accumulated assets of the 457 Plan are not required to be reported in the accompanying basic financial statemen ts. If 457 Plan participants retire or terminate service with the City, they may be eligible to receive payments under the 457 Plan in accordance with provisions thereof. In the event of serious financial emergency, the City may approve, upon request, withdrawals from the 457 Plan by the participants.

Effective October 1, 2021, the City shall contribute $75 per month, 1 or 4 percent of eligible participants’ base compensation into the 457 Plan, based on the various employee associations’ Memorandum of Understanding. Plan participants have the right to 100 percent of contributions made on their behalf and related earning upon their death, permanent and total disability or upon attainment of normal retirement age. Annual Pension Cost Employer contributions to the 457 Plan as of September 30, 2022 was $0.8 million.
98 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 19 – COMMITMENTS AND CONTINGENCIES
Encumbrances
The City uses encumbrances to control e xpenditure commitments for the year. Encumbrances represent commitments related to executory contract s not yet performed and purchase orders not yet filled. Commitments for such expenditure of monies are encumbered to reserve applicable appropriations. Encumbrances still open at year-end are not accounted for as expenditures and liabilities, but as restricted or committed fund balance on the governmental funds balance sheet.

Encumbrances related to capital projects are funded through the current year appropriated budget, which carries over to the following fiscal year.

At September 30, 2022, business-type and gove rnmental funds had outstanding operating and capital contractual commitments for construction projects and purchases of goods and services, as follows (in thousands):

Governmental Activities

General Fund 1,944$
General Capital Projects 76,281
Non-major Governmental Funds 10,331
Internal Service Fund 15,238
Total 103,794$

Business-Type Activities

Gas Utility 512$
Water 13,950
Tidelands Operating 37,175
Harbor 22,443
Non-major Business-Type Funds 15,422
Total 89,502$
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 sublease, the City is subject to an annual calculated lease payment up to $1.2 million th rough 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.

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 of $25.0 million 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, 2022 the MOU amount remains unchanged.

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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.

As stated in Note 13 to the basic financial stat ements, the City is self-insured for its workers’ compensation and liability claims. As claims are ma de 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 materi al 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 Agre ement 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 c ontainer 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% of the total annual required amount, with the Harbor and the Port of Los Angeles each responsible for one-half or 20% 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 of Es timated Shortfall Advances and Reserve Account Funding provided by ACTA dated on August 24, 2022 indicates that there is no projected shortfall for ACTA’s fiscal year ending June 30, 2023.

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 e ffort between the California Department of Transportation (Caltrans) and Harbor.

The new bridge (currently named as the Long Beach International Gateway) has been completed and transferred to the Caltrans as a component of the state highway system on March 2022. Harbor has an agreement with Caltrans for maintenance costs of the new bridge for a 30-year period commencing on the date of the ownership transfer to Caltrans.

The demolition phase on the old bridge started in 2022 and is estimated to be completed in 2024.

The old bridge’s main span has been removed, and other remaining structures (approaches, supports, pavement, etc.) are underway. The demolition budget is $59.9 million, and the Harbor has incurred approximately $25.1 million as of September 30, 2022.

99 City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

The demolition phase on the old bridge started in 2022 and is estimated to be completed in 2024.

100
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 20 – DEFERRED OUTFLOWS AND DEFERRED INFLOWS OF RESOURCES At September 30, 2022, Deferred Outflows of Resources and Deferred Inflows of Resources are as follows:

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

Economic loss from the refunding of debt -$ -$ -$ 986 $ 986$ Pension contributions after measurement date - - - 80,691 80,691 CalPERS Change in assumptions, experience,
and expected investment returns - - - 238,809 238,809 CalPERS Difference between actual
Change in pension allocation proportion - - - 5,990 5,990 OPEB contributions after measurement date - - - 2,476 2,476 OPEB Change in assumptions, experience,
and expected investment returns - - - 2,822 2,822 Change in OPEB allocation proportion - - - 663 663 Total deferred outflows of resources -$ -$ -$ 332,437$ 332,437$ Deferred Inflows of Resources:

Economic gain from the refunding of debt -$ -$ -$ 4,157$ 4,157$ Unavailable revenue and property taxes 117,306 224,874 342,180 (223,048) 119,132 Leases 141,238 3,109 144,347 - 144,347 CalPERS Change in assumptions, experience,
and expected investment returns - - - 30,755 30,755 Change in pension allocation proportion - - - 1,100 1,100 OPEB Change in assumptions, experience,
and expected investment returns - - - 24,167 24,167 Change in OPEB allocation proportion - - - 1,694 1,694 Total deferred inflows of resources 258,544$ 227,983$ 486,527$ (161,175)$ 325,352 $ City of Long Beach
Governmental Funds
Schedule of Deferred Outflows of Resources and Deferred Inflows of Resources For the Fiscal Year Ended September 30, 2022
(In Thousands)

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

Total
Workers' General Internal Total
Civic General Flee t Compensation Liabilit y Employee Service Governmenta l Center Services Services Insurance Insurance Benefits Funds Activities Deferred Outflows of Resources:

Economic loss from the refunding of debt -$ -$ - $ -$ - $ - $ -$ 986$ Pension contributions after measurement date 81 3,129 1,315 809 527 819 6,680 87,371 CalPERS Change in assumptions, experience,
and expected investment returns 205 7,915 3,326 2,045 1,334 2,072 16,897 255,706 Change in pension allocation proportion - - - - 180 428 608 6,598 OPEB contributions after measurement date - 100 50 16 12 23 201 2,677 OPEB Change in assumptions, experience,
and expected investment returns - 114 57 19 14 27 231 3,053 Change in OPEB allocation proportion - 108 15 127 151 - 401 1,064 Total deferred outflows of resources 286$ 11,366 $ 4,763 $ 3,016 $ 2,218 $ 3,369 $ 25,018 $ 357,455$ Deferred Inflows of Resources:

Economic gain from the refunding of debt -$ -$ 395 $ -$ - $ - $ 395$ 4,552$ Unavailable revenue - - - - - - - 119,132 Leases - - - - - - - 144,347 CalPERS Change in assumptions, experience,
and expected investment returns 20 758 319 196 128 198 1,619 32,374 Change in pension allocation proportion 92 671 639 144 22 455 2,023 3,123 OPEB Change in assumptions, experience,
and expected investment returns - 971 481 159 119 228 1,958 26,125 Change in OPEB allocation proportion - 182 122 7 44 184 539 2,233 Total deferred inflows of resources 112$ 2,582 $ 1,956 $ 506 $ 313 $ 1,065 $ 6,534$ 331,886$ (In Thousands)
City of Long Beach
Internal Service Funds
Schedule of Deferred Outflows of Resources and Deferred Inflows of Resources

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

Issuance costs - Bond Insurance -$ -$ 61$ -$ -$ -$ 61 $ Economic loss from the refunding of debt - 313 482 - - 10 805 Pension contributions after measurement date 3,034 3,962 5,036 490 12,059 6,240 30,821 CalPERS Change in assumptions, experience,
and expected investment returns 7,674 10,020 14,736 1,241 30,498 15,786 79,955 Change in pension allocation proportion 192 - 1,220 - 1,542 576 3,530 OPEB contributions after measurement date 101 109 170 14 305 156 855 OPEB Change in assumptions, experience,
and expected investment returns 115 125 195 16 349 179 979 Change in OPEB allocation proportion 67 56 1,073 25 793 234 2,248 Derivative instrument
Interest rate swap 2,037 - - - - - 2,037 Total deferred outflows of resources 13,220$ 14,585$ 22,973$ 1,786$ 45,546 $ 23,181$ 121,291 $ Deferred Inflows of Resources:

Economic gain from the refunding of debt -$ -$ -$ -$ 2,403$ 15$ 2,418$ Leases - 326 125,023 - - 1,894 127,243 CalPERS Change in assumptions, experience,
and expected investment returns 735 960 1,865 119 2,921 1,513 8,113 Change in pension allocation proportion 597 864 1,302 700 880 2,662 7,005 OPEB Change in assumptions, experience,
and expected investment returns 979 1,067 1,658 130 2,978 1,527 8,339 Change in OPEB allocation proportion 221 218 91 134 79 336 1,079 Derivative instrument
Commodity swap 294,922 - - - - - 294,922 Total deferred inflows of resources 297,454$ 3,435 $ 129,939$ 1,083$ 9,261$ 7,947$ 449,119 $ (In Thousands)
City of Long Beach
Enterprise Funds
Schedule of Deferred Outflows of Resources and Deferred Inflows of Resources

101
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 20 – DEFERRED OUTFLOWS AND DEFERRED INFLOWS OF RESOURCES At September 30, 2022, Deferred Outflows of Resources and Deferred Inflows of Resources are as follows:

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

City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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

102
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 21 - 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 governments 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 agreement has been entered into that contributes to economic development or otherwise benefits the governments or the residents in the areas governed by those governments.

The City enters into economic development agr eements 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.

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 related 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 sector of 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, includi ng determining 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 agreements continue for the period of time necessary to offset construction or improvement costs 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 active 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, 2022, sales tax abatements totaled $5.1 million.

103
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

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 subsequently 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 2022.

Mills Act Property Tax Incentive Program
The Mills Act is a State of California progr am enacted 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.

The purpose of the Mills Act Program is to en courage 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 iden tified 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 breach 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 2022, the City had agreements for which re-assessments were completed by the County Assessor’s office with a total property tax valuation of $190 million, and an estimated tax abatement of $209 thousand.

104

Intentionally Left Blank
City of Long Beach
Notes to the Basic Financial Statements
For the Fiscal Year Ended September 30, 2022

NOTE 22 – SUBSEQUENT EVENTS
MWN Community Hospital, LLC
In fiscal year 2020, the City entered into a s hort-term lease with MWN Community Hospital, LLC (Tenant), for the lease of property owned by the City at 1720 Termino Avenue, 1760 Termino Ave, and 4111 East Wilton Street. During the two years following the lease agreement, the Tenant worked to reopen the hospital and secure approval for seismic construction plans prior to the statutory deadline; however, seismic construction costs increased substantially over initial estimates, and demand for acute care services failed to reach levels needed to sustain acute care hospital operations. As a result, the Tenant determined that it was no longer economically feasible to operate the property as an acute care hospital and issued the City a lease termination notice. In the event of a lease termination, pursuant to lease terms, the Tenant was entitled to reimbursement by the City for all hospital capital costs expended by the Tenant to start up and reopen the hospital less any revenue received from operations. Should hospital capital costs exceed the value of the property, the City could transfer the property to the Tenant as full and complete payment.

In October 2022, the City Council approved the transfer of the property to the Tenant. The fair market value of the property was established at $17.7 million and hospital capital costs were verified by an independent third party at $26.6 million. Since the City’s financial obligation is limited to the fair market value of the property, hospital capital costs are deemed to be fully and completely paid.

105

Intentionally Left Blank

REQUIRED

SUPPLEMENTARY

INFORMATION
106
See accompanying Independent Auditors’ Report
2015 2016 2017
Total Pension Liability (TPL)
TPL - beginning 2,362,579$ 2,368,500$ 2,431,211$
Service cost 37,502 37,306 42,500
Interest in the TPL 171,128 175,727 177,096 Differences between actual and expected experience (45,118) (29,800) (56,898) Changes in assumptions2 (40,892) - 144,164 Benefit payments3 (116,699) (120,522) (125,722) Net change in TPL 5,921 62,711 181,140 TPL - ending (a) 2,368,500$ 2,431,211$ 2,612,351$ Plan Fiduciary Net Position
Plan fiduciary net position - beginning 1,881,680$ 1,857,249$ 1,802,786$ Net Plan to Plan Resource Movement - - (39) Contribution - employer 35,136 39,877 45,864 Contribution - employees 17,652 17,959 17,793 Net investment income 41,570 9,355 198,457 Administrative expenses (2,090) (1,132) (2,662) Benefit payments3 (116,699) (120,522) (125,722) Other miscellaneous expense - - - Net change in fiduciary net position (24,431) (54,463) 133,691 Plan fiduciary net position - ending (b) 1,857,249$ 1,802,786$ 1,936,477$ Net pension liability - ending (a)-(b) 511,251$ 628,425$ 675,874$ Fiduciary net position as a percentage of the TPL 78.41% 74.15% 74.13% Covered payroll 223,225$ 228,212$ 234,782$ NPL as percentage of covered payroll 229.03% 275.37% 287.87% Notes to Schedule:
3 Benefit payments include refunds of employee contributions.

City of Long Beach
Required Supplementary Information
(Unaudited)
Schedule of Changes in the Net Pension Liability (NPL) and Related Ratios Miscellaneous Plan
1 Fiscal year 2015 was the first year of implementation. 2 Changes in assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long- term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. (Calculated as of June 30 and reported as of September 30) Last 10 Years1
(In Thousands)
106 107
See accompanying Independent Auditors’ Report
2018 2019 2020 2021 2022
2,612,351$ 2,623,898$ 2,726,916$ 2,813,763$ 2,891,887$ 43,138 43,491 44,000 45,016 50,653 178,030 185,085 191,098 196,483 198,959 (28,799) 11,466 (4,185) (13,138) (16,364) (49,554) - - - 61,627 (131,268) (137,024) (144,066) (150,237) (158,021) 11,547 103,018 86,847 78,124 136,854 2,623,898$ 2,726,916$ 2,813,763$ 2,891,887$ 3,028,741$ 1,936,477$ 2,030,299$ 2,105,327$ 2,153,414$ 2,577,251$ (5) (5) - 7 - 53,278 62,484 71,565 78,158 81,488 18,339 18,876 19,350 19,885 21,568 162,226 132,140 104,205 478,175 (193,818) (3,018) (1,449) (2,967) (2,151) (1,605) (131,268) (137,023) (144,066) (150,237) (158,021) (5,730) 5 - - - 93,822 75,028 48,087 423,837 (250,388) 2,030,299$ 2,105,327$ 2,153,414$ 2,577,251$ 2,326,863$ 593,599$ 621,589$ 660,349$ 314,636$ 701,878$

77.38% 77.21% 76.53% 89.12% 76.83%
242,227$ 248,064$ 254,926$ 265,736$ 267,155$ 245.06% 250.58% 259.04% 118.40% 262.72%
108
See accompanying Independent Auditors’ Report
2015 2016 2017
Actuarially Determined Contribution2 35,136$ 39,877$ 45,864$ (35,136) (39,877) (45,864)
Contribution deficiency (excess) -$ -$ -$ Covered payroll4 239,897$ 246,490$ 258,248$

14.65% 16.18% 17.76%
Notes to schedule:

Valuation Date: 6/30/2019
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method For details, see June 30, 2019 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
2Actuarially Determined Calculation is based on a CalPERS projection of the Miscellaneous payroll. 3Amount represents actual contributions as recorded by CalPERS.

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.
4Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

City of Long Beach
Required Supplementary Information
(Unaudited)
Schedule of Contributions
Miscellaneous Plan
As of and for the year ended September 30
Last 10 Years1
(In Thousands)
1Historical information is required only for years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation.

Contributions in relation to the actuarially determined Contributions as a percentage of covered payroll4
Fair Value of Assets. For details, see June 30, 2019 Funding Valuation Report.

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022 were from the June 30, 2019 funding valuation report.

7.00%, net of pension plan investment and administrative expenses, including inflation.
108 109
See accompanying Independent Auditors’ Report
2018 2019 2020 2021 2022
53,278$ 62,484$ 71,565$ 78,158$ 81,488$ (53,278) (62,484) (71,565) (78,158) (81,488) -$ -$ -$ -$ -$ 269,936$ 270,237$ 285,980$ 279,318$ 295,145$

19.74% 23.12% 25.02% 27.98% 27.61%
110
See accompanying Independent Auditors’ Report
2015 2016 2017
Total Pension Liability
TPL - beginning 2,209,454$ 2,222,223$ 2,286,528$
Service cost 34,835 34,636 38,622
Interest in the TPL 160,374 165,092 166,486 Differences between actual and expected experience (38,807) (27,528) (61,909) Changes in assumptions2 (39,710) - 139,900 Benefit payments3 (103,922) (107,895) (110,713) Net change in TPL 12,770 64,305 172,386 TPL - ending (a) 2,222,224$ 2,286,528$ 2,458,914$
Plan Fiduciary Net Position
Plan fiduciary net position - beginning 1,889,902$ 1,866,598$ 1,811,258$ Net Plan to Plan Resource Movement - - 39 Contribution - employer 29,815 32,845 39,371 Contribution - employees 11,737 11,733 12,802 Net investment income 41,167 9,115 198,577 Administrative expenses (2,101) (1,138) (2,674) Benefit payments3 (103,922) (107,895) (110,713) Other miscellaneous expense - - - Net change in fiduciary net position (23,304) (55,340) 137,402 Plan fiduciary net position - ending (b) 1,866,598$ 1,811,258$ 1,948,660$ Net pension liability - ending (a)-(b) 355,626$ 475,270$ 510,254$ Fiduciary net position as a percentage of the TPL 84.00% 79.21% 79.25% Covered payroll 127,265$ 127,789$ 126,530$
NPL as percentage of covered payroll 279.44% 371.92% 403.27% Notes to Schedule:

City of Long Beach
Required Supplementary Information
(Unaudited)
1 Fiscal year 2015 was the first year of implementation. 3 Benefit payments include refunds of employee contributions Schedule of Changes in the Net Pension Liability (NPL) and Related Ratios 2 Changes in assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.

Safety Plan
(Calculated as of June 30 and reported as of September 30) Last 10 Years1
(In Thousands)
110 111
See accompanying Independent Auditors’ Report
2018 2019 2020 2021 2022
2,458,914$ 2,510,763$ 2,630,341$ 2,723,971$ 2,825,833$ 40,757 42,335 43,862 45,592 49,374 170,018 178,200 184,631 191,618 194,259 (102) 21,708 (5,180) 1,763 (31,255) (43,795) - - - 68,729 (115,029) (122,665) (129,683) (137,111) (145,304) 51,849 119,578 93,630 101,862 135,803 2,510,763$ 2,630,341$ 2,723,971$ 2,825,833$ 2,961,636$ 1,948,660$ 2,048,027$ 2,126,671$ 2,178,824$ 2,612,594$ (5) 4 - (7) - 46,437 55,248 64,654 71,008 71,361 14,047 14,287 15,089 16,780 17,840 162,720 133,226 105,091 485,277 (196,765) (3,037) (1,461) (2,998) (2,177) (1,627) (115,029) (122,665) (129,683) (137,111) (145,304) (5,766) 5 - - - 99,367 78,644 52,153 433,770 (254,495) 2,048,027$ 2,126,671$ 2,178,824$ 2,612,594$ 2,358,099$ 462,736$ 503,670$ 545,147$ 213,239$ 603,537$

81.57% 80.85% 79.99% 92.45% 79.62%
136,458$ 141,252$ 148,487$ 156,245$ 154,439$ 339.10% 356.57% 367.14% 136.48% 390.79%
112
See accompanying Independent Auditors’ Report
2015 2016 2017
Actuarially Determined Contribution2 29,815$ 32,845$ 39,371$ (29,815) (32,845) (39,371)
Contribution deficiency (excess) -$ -$ -$ Covered payroll4 155,208$ 127,788$ 126,530$

19.21% 25.70% 31.12%
Notes to schedule:

Valuation Date: 6/30/2019
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method For details, see June 30, 2019 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 7.00%, net of pension plan investment and administrative expenses, including inflation.

Retirement Age
Mortality
Notes
2Actuarially Determined Calculation is based on a CalPERS projection of the Safety payroll. 3Amount represents actual contributions as recorded by CalPERS. 4Includes one year’s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17.

City of Long Beach
Required Supplementary Information
(Unaudited)
Schedule of Contributions
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, 2019 Funding Valuation Report.

Contributions in relation to the actuarially determined contribution3 Contributions as a percentage of covered payroll4
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015.

Safety Plan
As of and for the year ended September 30
Last 10 Years1
(In Thousands)
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022 were from the June 30, 2019 funding valuation report.
112 113
See accompanying Independent Auditors’ Report
2018 2019 2020 2021 2022
46,437$ 55,248$ 64,654$ 71,008$ 71,361$ (46,437) (55,248) (64,654) (71,008) (71,361) -$ -$ -$ -$ -$ 136,458$ 141,252$ 148,486$ 156,245$ 196,182$

34.03% 39.11% 43.54% 45.45% 36.37%
114

Intentionally Left Blank

ADDITIONAL

FINANCIAL

SECTION
115 115
See accompanying Independent Auditors’ Report
Special Debt Ca pital
Revenue Service Projects
Funds Funds Funds Total
ASSETS
Pooled Cash and Cash Equivalents 66,400$ 16,010$ 11,738$ 94,148$ Non-Pooled Cash and Cash Equivalents 40 17,509 66 17,615 Interest Receivable 1 - 3 4 Accounts Receivable 4,326 - 11 4,337 Due from Other Governments 49,634 - - 49,634 Due from Other Funds 1,061 - - 1,061 Lease Receivables 253 - 2,878 3,131 Allowance for Receivables (5,763) - - (5,763) Other Assets 277 - - 277 Advances to Other Funds 3,809 - - 3,809 Land Held for Resale 5,874 - - 5,874 Other Noncurrent Receivables 224,398 - 5,684 230,082 Total Assets 350,310$ 33,519 $ 20,380$ 404,209 $

LIABILITIES
Accounts Payable 16,656$ 1$ 10 $ 16,667$ Accrued Wages and Benefits Payable 287 - - 287 Due to Other Funds 23,521 - - 23,521 Unearned Revenues 42,793 - 30 42,823 Deposits and Collections Held in Trust 487 1,449 100 2,036 Advances from Other Funds 3,809 - - 3,809 Total Liabilities 87,553 1,450 140 89,143

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 219,442 - 8,541 227,983

FUND BALANCES
Nonspendable 1,098 - - 1,098 Restricted 66,293 32,069 11,699 110,061
Committed 1,200 - - 1,200 Unassigned (25,276) - - (25,276) Total Fund Balance 43,315 32,069 11,699 87,083 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 350,310$ 33,519 $ 20,380$ 404,209 $ Receivables:

City of Long Beach
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2022
(In Thousands)
116
See accompanying Independent Auditors’ Report
Special Debt Ca pital
Revenue Service Projects
Funds Funds Funds Total
Revenues:

Taxes:

Property 6,317 $ 21,390$ 1,785$ 29,492$ Sales 3,066 - - 3,066 Other Taxes 12,448 - - 12,448 Licenses and Permits 11,113 - - 11,113 Use of Money and Property 1,768 755 - 2,523 From Other Agencies 176,627 - - 176,627 Charges for Services 1,794 - - 1,794 Other 2,509 - 323 2,832 Total Revenues 215,642 22,145 2,108 239,895 Expenditures:

Current:

Legislative and Legal 4 - - 4 General Government 5,795 - - 5,795 Public Safety 14,330 - - 14,330 Public Health 85,951 - - 85,951 Community and Cultural 90,050 6 750 90,806 Public Works 8,356 - - 8,356 Total Current Expenditures 204,486 6 750 205,242 Capital Improvements 11,497 - - 11,497 Debt Service:

Principal - 22,057 - 22,057 Interest - 10,142 - 10,142 Debt Administration Fees - 490 - 490 Total Expenditures 215,983 32,695 750 249,428 Excess of Revenues over
(under) Expenditures (341) (10,550) 1,358 (9,533) Other Financing Sources (Uses):

Issuance of Refunding Debt - 25,411 - 25,411 Premium on Refunding Debt Issuance - 2,123 - 2,123 Payment to Refunded Bonds Escrow Agent - (25,057) - (25,057) Transfers In 1,811 7,467 - 9,278 Transfers Out (51,460) (84) (458) (52,002) Total Other Financing Sources (Uses) (49,649) 9,860 (458) (40,247) Net Change in Fund Balances (49,990) (690) 900 (49,780) Fund Balances - October 1 93,305 32,759 10,799 136,863 Fund Balances - September 30 43,315$ 32,069$ 11,699$ 87,083$ City of Long Beach
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
For the Fiscal Year Ended September 30, 2022
(In Thousands)
117116

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.
118
See accompanying Independent Auditors’ Report
Police and Fire
Public Safety Community
General Oil Production Development
Grants Act Grants Health
ASSETS
Pooled Cash and Cash Equivalents 9,487$ 158$ 315$ 818$ Non-Pooled Cash and Cash Equivalents - - 31 1 Receivables:

Interest Receivable - - - 1 Accounts Receivable 2 253 - 1,372 Due from Other Governments 12,074 - 11,918 25,476 Due from Other Funds 244 - - 334 Lease Receivables - - - 253 Allowance for Receivables (2) - (5,202) (383) Other Assets-Current 185 - 92 - Advances to Other Funds - - 3,809 - Land Held for Resale - - 821 - Other Noncurrent Receivables (net) - - 75,370 - Total Assets 21,990$ 411$ 87,154$ 27,872$

LIABILITIES
Accounts Payable 1,999$ -$ 3,823$ 9,561$ Accrued Wages 14 - 39 208 Due to Other Funds 1,310 - 166 21,948 Unearned Revenues 21,735 240 3,366 17,337 Deposits and Collections Held in Trust 25 - - 367 Advances from Other Funds - - - - Total Liabilities 25,083 240 7,394 49,421

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - - 70,167 247

FUND BALANCES (DEFICIT)
Nonspendable 185 - 913 - Restricted - 171 8,680 202 Committed - - - - Unassigned (3,278) - - (21,998) Total Fund Balances (3,093) 171 9,593 (21,796) Total Liabilities, Deferred Inflows of
Resources and Fund Balances 21,990$ 411$ 87,154$ 27,872$ Special Revenue
City of Long Beach
Nonmajor Special Revenue Funds
Combining Balance Sheet
September 30, 2022
(In Thousands)
Belmont
Shore Other Total
Parking Development Special Special
Meter Housing Impact Revenue Revenue
Revenue Development Fees Funds Funds
ASSETS
229$ 24,674$ 20,061$ 10,658$ 66,400$ Pooled Cash and Cash Equivalents - 8 - - 40 Non-Pooled Cash and Cash Equivalents Receivables:
- - - - 1 Interest Receivable - 23 - 2,676 4,326 Accounts R eceivable - - - 166 49,634 Due from Other Governments - 6 - 477 1,061 Due from Other Funds - - - - 253 Lease Receivables - - - (176) (5,763) Allowance for Receivables - - - - 277 Other Assets-Current - - - - 3,809 Advances to Other Funds - 5,053 - - 5,874 Land Held for Resale - 146,483 - 2,545 224,398 Other Noncurrent Receivables 229$ 176,247$ 20,061$ 16,346$ 350,310$ Total Assets

LIABILITIES
20$ 49$ 2$ 1,202$ 16,656$ Accounts Payable - 4 - 22 287 Accrued Wages - 13 - 84 23,521 Due to Other Funds - 25 - 90 42,793 Unearned Revenues 10 - - 85 487 Deposits and Collections Held in Trust - 3,809 - - 3,809 Advances from Other Funds 30 3,900 2 1,483 87,553 Total Liabilities

DEFERRED INFLOWS OF RESOURCES
- 146,483 - 2,545 219,442 Deferred Inflows of Resources

FUND BALANCES (DEFICIT)
- - - - 1,098 Nonspendable 199 25,864 20,059 11,118 66,293 Restricted - - - 1,200 1,200 Committed - - - - (25,276) Unassigned 199 25,864 20,059 12,318 43,315 Total Fund Balances Total Liabilities, Deferred Inflows of
229$ 176,247$ 20,061$ 16,346$ 350,310$ Resources and Fund Balances Special Revenue
118 119
See accompanying Independent Auditors’ Report
Belmont
Shore Other Total
Parking Development Special Special
Meter Housing Impact Revenue Revenue
Revenue Development Fees Funds Funds
ASSETS
229$ 24,674$ 20,061$ 10,658$ 66,400$ Pooled Cash and Cash Equivalents - 8 - - 40 Non-Pooled Cash and Cash Equivalents Receivables:
- - - - 1 Interest Receivable - 23 - 2,676 4,326 Accounts R eceivable - - - 166 49,634 Due from Other Governments - 6 - 477 1,061 Due from Other Funds - - - - 253 Lease Receivables - - - (176) (5,763) Allowance for Receivables - - - - 277 Other Assets-Current - - - - 3,809 Advances to Other Funds - 5,053 - - 5,874 Land Held for Resale - 146,483 - 2,545 224,398 Other Noncurrent Receivables 229$ 176,247$ 20,061$ 16,346$ 350,310$ Total Assets

DEFERRED INFLOWS OF RESOURCES
- 146,483 - 2,545 219,442 Deferred Inflows of Resources

Taxes:

Property - $ -$ -$ 6,317$ Sales - - - 3,066 Other Taxes - 2,872 - - Licenses and Permits - - - 3,946 Use of Money and Property 52 1 722 199 From Other Agencies 65,837 - 76,761 33,561 Charges for Services 256 - - 1,526 Other 133 - 1,580 44 Total Revenues 66,278 2,873 79,063 48,659 Expenditures:

Current:

Legislative and Legal 4 - - - General Government 4,424 - - - Public Safety 11,074 2,878 378 - Public Health 281 - - 83,337 Community and Cultural 2,210 - 81,417 - Public Works 8,356 - - - Total Current Expenditures 26,349 2,878 81,795 83,337 Capital Improvements 166 - - 810 Total Expenditures 26,515 2,878 81,795 84,147 Excess of Revenues over
(under) Expenditures 39,763 (5) (2,732) (35,488) Other Financing Sources (Uses)
Transfers In 66 - 2 1,639 Transfers Out (49,225) - (84) (600) Total Other Financing Sources (Uses) (49,159) - (82) 1,039 Net Change in Fund Balances (9,396) (5) (2,814) (34,449) Fund Balances - October 1 6,303 176 12,407 12,653 Fund Balances - September 30 (3,093)$ 171$ 9,593$ (21,796)$ 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, 2022
(In Thousands)
120 121
See accompanying Independent Auditors’ Report
Police and Fire
Public Safety Community
General Oil Production Development
Grants Ac t Grants Health
Revenues:

Taxes:

Current:

Legislative and Legal 4 - - - General Government 4,424 - - - Public Safety 11,074 2,878 378 - Public Health 281 - - 83,337 Community and Cultural 2,210 - 81,417 - Public Works 8,356 - - - Total Current Expenditures 26,349 2,878 81,795 83,337 Capital Improvements 166 - - 810 Total Expenditures 26,515 2,878 81,795 84,147 Excess of Revenues over
(under) Expenditures 39,763 (5) (2,732) (35,488) Other Financing Sources (Uses)
Transfers In 66 - 2 1,639 Transfers Out (49,225) - (84) (600) Total Other Financing Sources (Uses) (49,159) - (82) 1,039 Net Change in Fund Balances (9,396) (5) (2,814) (34,449) Fund Balances - October 1 6,303 176 12,407 12,653 Fund Balances - September 30 (3,093)$ 171$ 9,593$ (21,796)$ 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, 2022
(In Thousands)
Belmont Shore Other Total
Parking Development Special Special
Meter Housing Impact Revenue Revenue
Revenue Development Fees Funds Funds
Revenues:

Taxes:
-$ -$ -$ -$ 6,317$ Property - - - - 3,066 Sales - - - 9,576 12,448 Other Taxes - 176 3,029 3,962 11,113 Licenses and Permits 794 - - - 1,768 Use of Money and Property - - - 468 176,627 From Other Agencies - - - 12 1,794 Charges for Services - 402 - 350 2,509 Other 794 578 3,029 14,368 215,642 Total Revenues Expenditures:

Current:
- - - - 4 Legislative and Legal 6 347 - 1,018 5,795 General Government - - - - 14,330 Public Safety - - - 2,333 85,951 Public Health 686 4,771 - 966 90,050 Community and Cultural - - - - 8,356 Public Works 692 5,118 - 4,317 204,486 Total Current Expenditures - - 774 9,747 11,497 Capital Improvements 692 5,118 774 14,064 215,983 Total Expenditures Excess of Revenues Over
102 (4,540) 2,255 304 (341) (Under) Expenditures Other Financing Sources (Uses)
- - - 104 1,811 Transfers In - (729) (410) (412) (51,460) Transfers Out - (729) (410) (308) (49,649) Total Other Financing Sources (Uses) 102 (5,269) 1,845 (4) (49,990) Net Change in Fund Balances 97 31,133 18,214 12,322 93,305 Fund Balances - October 1 199$ 25,864$ 20,059$ 12,318$ 43,315$ Fund Balances - September 30 Special Revenue
122
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, 2022
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property -$ -$ 52$ 52$ From Other Agencies 7,546 39,336 65,837 26,501 Charges for Services 194 133 256 123 Other Revenues 345 610 133 (477) Transfers In - - 66 66 Total Revenues 8,085 40,079 66,344 26,265 Expenditures:

Legislative and Legal - - 4 (4) General Government - 7,260 4,424 2,836 Public Safety 5,932 15,893 11,988 3,905 Public Health - 365 291 74 Community and Cultural - - 2,210 (2,210) Public Works 1,339 3,372 8,403 (5,031) Capital Improvements 8,883 39,319 1,679 37,640 Transfers Out - - 49,225 (49,225) Total Expenditures 16,154 66,209 78,224 (12,015) Net Change in Budgetary Fund Balance (8,069)$ (26,130) $ (11,880)$ 14,250$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (11,880)$ Add: Encumbrances 2,484
Change in Fund Balance - September 30, GAAP Basis (9,396) Fund Balance, October 1, GAAP Basis 6,303
Fund Balance, September 30, GAAP Basis (3,093)$
(In Thousands)
General Grants
Budgeted Amounts
122 123
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Other Taxes 2,923$ 2,923$ 2,872$ (51)$ Use of Money and Property - - 1 1 Total Revenues 2,923 2,923 2,873 (50) Expenditures:

Public Safety 2,922 2,922 2,878 44 Total Expenditures 2,922 2,922 2,878 44 Net Change in Budgetary Fund Balance 1$ 1$ (5)$ (6)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (5)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (5)
Fund Balance, October 1, GAAP Basis 176
Fund Balance, September 30, GAAP Basis 171$
Police and Fire Public Safety Oil Production Tax
Budgeted Amounts
124
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 323$ 276$ 722$ 446$ From Other Agencies 9,543 16,319 76,761 60,442 Other Revenues - 3,829 1,580 (2,249) Transfers In - - 2 2 Total Revenues 9,866 20,424 79,065 58,641 Expenditures:

General Government (704) (704) - (704) Public Safety 1,610 1,610 378 1,232 Community and Cultural (4,949) 40,870 81,887 (41,017) Transfers Out 1,164 1,158 84 1,074 Total Expenditures (2,879) 42,934 82,349 (39,415) Net Change in Budgetary Fund Balance 12,745$ (22,510)$ (3,284)$ 19,225$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (3,284)$ Add: Encumbrances 470
Change in Fund Balance - September 30, GAAP Basis (2,814) Fund Balance, October 1, GAAP Basis 12,407
Fund Balance, September 30, GAAP Basis 9,593$
Budgeted Amounts
Community Development Grants
124 125
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 5,800$ 5,800$ 6,317$ 517$ Sales Taxes 2,886 2,886 3,066 180 Licenses and Permits 3,889 3,889 3,946 57 Use of Money and Property 45 45 199 154 From Other Agencies 43,242 81,779 33,561 (48,218) Charges for Services 2,871 4,414 1,526 (2,888) Other Revenues 59 68 44 (24) Transfers In 325 381 1,639 1,258 Total Revenues 59,117 99,262 50,298 (48,964) Expenditures:

Public Health 56,714 96,890 91,539 5,351 Capital Improvements 2,364 1,766 810 956 Transfers Out - - 600 (600) Total Expenditures 59,078 98,656 92,949 5,707 Net Change in Budgetary Fund Balance 39$ 606 $ (42,651)$ (43,257)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (42,651)$ Add: Encumbrances 8,202
Change in Fund Balance - September 30, GAAP Basis (34,449) Fund Balance, October 1, GAAP Basis 12,653
Fund Balance, September 30, GAAP Basis (21,796)$
Health
Budgeted Amounts
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 765$ 798$ 1,592$ 794$ Total Revenues 765 798 1,592 794 Expenditures:

General Government - - 6 (6) Community and Cultural 765 798 688 110 Total Expenditures 765 798 694 104 Net Change in Budgetary Fund Balance -$ -$ 898$ 898$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 898$ Add: Encumbrances 2
Less: Change in Mark-to-Market and Other Adjustments (798) Change in Fund Balance - September 30, GAAP Basis 102
Fund Balance, October 1, GAAP Basis 97
Fund Balance, September 30, GAAP Basis 199$
Belmont Shore Parking Meter Revenues
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Licenses and Permits 370$ 370$ 176$ (194)$ Use of Money and Property 385 385 - (385) Other Revenues 562 562 402 (160) Transfers In 2,911 2,911 - (2,911) Total Revenues 4,228 4,228 578 (3,650) Expenditures:

General Government 257 257 395 (138) Community and Cultural 2,510 2,463 4,808 (2,345) Transfers Out - - 729 (729) Total Expenditures 2,767 2,720 5,932 (3,212) Net Change in Budgetary Fund Balance 1,461$ 1,508$ (5,354)$ (6,862)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (5,354)$ Add: Encumbrances 85
Change in Fund Balance - September 30, GAAP Basis (5,269) Fund Balance, October 1, GAAP Basis 31,133
Fund Balance, September 30, GAAP Basis 25,864$
Housing Development
Budgeted Amounts
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Licenses and Permits 2,515$ 2,532$ 3,029$ 497$ Total Revenues 2,515 2,532 3,029 497 Expenditures:

Capital Improvements 7 24 792 (768) Transfers Out 2,743 2,743 410 2,333 Total Expenditures 2,750 2,767 1,202 1,565 Net Change in Budgetary Fund Balance (235)$ (235)$ 1,827$ 2,062$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 1,827$ Add: Encumbrances 18
Change in Fund Balance - September 30, GAAP Basis 1,845 Fund Balance, October 1, GAAP Basis 18,214
Fund Balance, September 30, GAAP Basis 20,059$
Development Impact Fees
Budgeted Amounts
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Other Taxes 8,327$ 8,327$ 9,576$ 1,249$ Licenses and Permits 2,998 2,998 3,962 964 Use of Money and Property 36 36 - (36) From Other Agencies - - 468 468 Charges for Services - - 12 12 Other Revenues 768 812 350 (462) Transfers In 156 156 104 (52) Total Revenues 12,285 12,329 14,472 2,143 Expenditures:

General Government 570 570 1,018 (448) Public Health 2,523 2,523 2,333 190 Community and Cultural 11,623 12,256 1,005 11,251 Capital Improvements - - 9,747 (9,747) Transfers Out - - 412 (412) Total Expenditures 14,716 15,349 14,515 834 Net Change in Budgetary Fund Balance (2,431)$ (3,020)$ (43)$ 2,977$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (43)$ Add: Encumbrances 39
Change in Fund Balance - September 30, GAAP Basis (4)
Fund Balance, October 1, GAAP Basis 12,322
Fund Balance, September 30, GAAP Basis 12,318$
Budgeted Amounts
Other Special Revenue Funds
130

Intentionally Left Blank

131

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.

132
See accompanying Independent Auditors’ Report
Successor Total
General Agenc y Debt
Debt Debt Service
Service Service Funds
ASSETS
Pooled Cash and Cash Equivalents 16,010$ -$ 16,010$ Non-Pooled Cash and Cash Equivalents 2,486 15,023 17,509 Total Assets 18,496$ 15,023$ 33,519$

LIABILITIES
Accounts Payable -$ 1$ 1$
Deposits and Collections Held in Trust 1,449 - 1,449 Total Liabilities 1,449 1 1,450

FUND BALANCES
Restricted 17,047 15,022 32,069
Total Fund Balance 17,047 15,022 32,069
Total Liabilities and Fund Balances 18,496$ 15,023$ 33,519$ (In Thousands)
City of Long Beach
Nonmajor Debt Service Funds
Combining Balance Sheet
September 30, 2022
132 133
See accompanying Independent Auditors’ Report
Successor Total
General Agenc y Debt
Debt Debt Service
Service Service Funds
ASSETS
Pooled Cash and Cash Equivalents 16,010$ -$ 16,010$ Non-Pooled Cash and Cash Equivalents 2,486 15,023 17,509 Total Assets 18,496$ 15,023$ 33,519$

LIABILITIES
Accounts Payable -$ 1$ 1$
Deposits and Collections Held in Trust 1,449 - 1,449 Total Liabilities 1,449 1 1,450

Taxes:

Property - $ 21,390$ 21,390$ Use of Money and Property 690 65 755 Total Revenues 690 21,455 22,145 Expenditures:

Current:

Community and Cultural - 6 6 Total Current Expenditures - 6 6 Debt Service:

Principal 5,977 16,080 22,057
Interest 2,389 7,753 10,142
Debt Administration Fees 476 14 490 Total Expenditures 8,842 23,853 32,695 Excess of Revenues over
(under) Expenditures (8,152) (2,398) (10,550) Other Financing Sources (Uses):

Issuance of Refunding Debt 25,411 - 25,411 Premium on Refunding Debt Issuance 2,123 - 2,123 Payment to Refunded Bonds Escrow Agent (25,057) - (25,057) Transfers In 7,009 458 7,467 Transfers Out (84) - (84) Total Other Financing Sources 9,402 458 9,860 Net Change in Fund Balances 1,250 (1,940) (690) Fund Balances - October 1 15,797 16,962 32,759 Fund Balances - September 30 17,047$ 15,022$ 32,069$ (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, 2022
134
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, 2022
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Use of Money and Property 250$ 250$ 690$ 440$ Issuance of Refunding Debt - - 25,411 25,411 Premium on Refunding Debt Issuance - 2,123 2,123 - Transfers In 6,287 6,287 7,009 722 Total Revenues 6,537 8,660 35,233 26,573 Expenditures:

Debt Service 8,132 11,911 8,842 3,069 Payment to Refunded Bonds Escrow Agent - - 25,057 (25,057) Transfers Out 84 84 84 - Total Expenditures 8,216 11,995 33,983 (21,988) Net Change in Budgetary Fund Balance (1,679)$ (3,335)$ 1,250$ 4,585$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 1,250$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis 1,250 Fund Balance, October 1, GAAP Basis 15,797
Fund Balance, September 30, GAAP Basis 17,047$
Budgeted Amounts
(In Thousands)
General Debt Service Fund
134 135
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, 2022
(In Thousands)
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 30,162$ 30,162$ 21,390$ (8,772)$ Use of Money and Property - - 65 65 Transfers In - - 458 458 Total Revenues 30,162 30,162 21,913 (8,249) Expenditures:

Community and Cultural - - 6 (6) Debt Service 23,946 23,946 23,847 99 Total Expenditures 23,946 23,946 23,853 93 Net Change in Budgetary Fund Balance 6,216$ 6,216$ (1,940)$ (8,156)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (1,940)$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis (1,940) Fund Balance, October 1, GAAP Basis 16,962
Fund Balance, September 30, GAAP Basis 15,022$
Successor Agency Debt Service Fund
Budgeted Amounts
136

Intentionally Left Blank

137

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.

138
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$ 9,962$ 11,738$ Non-Pooled Cash and Cash Equivalents 33 33 66 Interest Receivable - 3 3 Accounts Receivable - 11 11 Lease Receivables - 2,878 2,878 Other Noncurrent Receivables - 5,684 5,684 Total Assets 1,809$ 18,571$ 20,380$

LIABILITIES
Accounts Payable -$ 10$ 10$
Unearned Revenues - 30 30 Deposits and Collections Held in Trust - 100 100 Total Liabilities - 140 140

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - 8,541 8,541

FUND BALANCES
Restricted 1,809 9,890 11,699
Total Fund Balance 1,809 9,890 11,699 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 1,809$ 18,571$ 20,380$ Receivables:

City of Long Beach
Nonmajor Capital Project Funds
Combining Balance Sheet
September 30, 2022
(In Thousands)
138 139
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$ 9,962$ 11,738$ Non-Pooled Cash and Cash Equivalents 33 33 66 Interest Receivable - 3 3 Accounts Receivable - 11 11 Lease Receivables - 2,878 2,878 Other Noncurrent Receivables - 5,684 5,684 Total Assets 1,809$ 18,571$ 20,380$

LIABILITIES
Accounts Payable -$ 10$ 10$
Unearned Revenues - 30 30 Deposits and Collections Held in Trust - 100 100 Total Liabilities - 140 140

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources - 8,541 8,541

FUND BALANCES
Restricted 1,809 9,890 11,699
Total Fund Balance 1,809 9,890 11,699 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 1,809$ 18,571$ 20,380$ Receivables:

City of Long Beach
Nonmajor Capital Project Funds
Combining Balance Sheet
September 30, 2022
(In Thousands)
Special Successor Total
Assessment Agency Capital
Capital Capital Projects
Projects Projects Funds
Revenues:

Taxes:

Property - $ 1,785$ 1,785$
Other - 323 323
Total Revenues - 2,108 2,108
Expenditures:

Current:

Community and Cultural - 750 750 Total Current Expenditures - 750 750 Excess of Revenues Over
(under) Expenditures - 1,358 1,358 Other Financing Sources (Uses):

Transfers Out - (458) (458)
Net Change in Fund Balances - 900 900 Fund Balances - October 1 1,809 8,990 10,799 Fund Balances - September 30 1,809$ 9,890$ 11,699 $ (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, 2022
140
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, 2022
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 - - - - Total Expenditures - - - - Net Change in Budgetary Fund Balance 15 15 - (15)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis -$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis -
Fund Balance, October 1, GAAP Basis 1,809
Fund Balance, September 30, GAAP Basis 1,809$
(In Thousands)
Special Assessment Capital Projects Fund
Budgeted Amounts
140 141
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, 2022
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 - - - - Total Expenditures - - - - Net Change in Budgetary Fund Balance 15 15 - (15)$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis -$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis -
Fund Balance, October 1, GAAP Basis 1,809
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, 2022
Variance
with Final
Actual on Budget -
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 3,000$ 3,000$ 1,785$ (1,215)$ Licenses and Permits 15 15 - (15) Use of Money and Property 797 797 - (797) Other Revenues 408 408 323 (85) Total Revenues 4,220 4,220 2,108 (2,112) Expenditures:

General Government 9 9 - 9 Community and Cultural 4,284 4,284 750 3,534 Transfers Out - - 458 (458) Total Expenditures 4,293 4,293 1,208 3,085 Net Change in Budgetary Fund Balance (73) (73) 900 973$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis 900$ Add: Encumbrances -
Change in Fund Balance - September 30, GAAP Basis 900
Fund Balance, October 1, GAAP Basis 8,990
Fund Balance, September 30, GAAP Basis 9,890$
(In Thousands)
Budgeted Amounts
Succesor Agency Capital Projects Fund
142

Intentionally Left Blank

143

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 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 operations, 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 Au thority 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.

144
See accompanying Independent Auditors’ Report
Total
Nonmajor
Solid Waste Development Proprietary
Sewer Airport Management Towing Subsidence Services Fund s ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 12,682$ 61,885 $ 27,008 $ 1,380$ 185,209 $ 38,159 $ 326,323 $ Non-Pooled Cash and Cash Equivalents - 19,402 3 2 - - 19,407 Receivables:

Interest Receivable - 7 - - - - 7
Accounts Receivable 1,582 4,120 12,030 247 - - 17,979 Due from Other Governments - 14,475 260 - - 982 15,717 Due from Other Funds - - 343 - - 4 0 383 Lease Receivable - Current - 142 - - - - 142 Allowance for Receivables (158) (731) (3,789) (244) - (1,584) (6,506) Inventory 238 - - - - - 238
Other Assets - Current - 6 4 - - - - 6 4
Total Current Assets 14,344 99,364 35,855 1,385 185,209 37,597 373,754 Noncurrent Assets:

Noncurrent Receivables
Lease Receivables - 1,793 - - - - 1,793 Capital Assets:
11,510 59,762 7,003 - - - 78,275 77,479 274,890 6,065 - - 5 358,439 Total Noncurrent Assets 88,989 336,445 13,068 - - 5 438,507 Total Assets 103,333 435,809 48,923 1,385 185,209 37,602 812,261

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 2,774 5,823 5,979 1,467 - 7,138 23,181

LIABILITIES S
Current Liabilities Payable from Current Assets
Accounts Payable 1,472 14,925 10,784 3 7 - 1,441 28,659 Accrued Wages 2 9 5 1 60 14 - 6 7 221 Accrued Interest Payable 135 1,534 - - - - 1,669 Due to Other Funds 104 188 292 70 - 237 891 Unearned Revenues 7 1,085 5 6 - - 198 1,346 Collections Held in Trust - - 741 - - 1 742 Customers Deposits - 247 - - - 968 1,215 Advances from Developers 215 - - - - 13,410 13,625 440 1,078 1,039 232 - 965 3,754 Bonds Payable Due within One Year 405 2,570 - - - - 2,975 Total Current Liabilities 2,807 21,678 12,972 353 - 17,287 55,097 Noncurrent Liabilities:

Unearned Revenues - 4,887 - - - - 4,887 836 1,812 1,765 433 - 1,470 6,316 Bonds Payable 8,118 118,708 - - - - 126,826 Total OPEB Liability 2 4 5 2 51 13 - 4 5 185 Net Pension Liability 8,470 16,867 17,353 4,244 - 21,686 68,620 Total Noncurrent Liabilities 17,448 142,326 19,169 4,690 - 23,201 206,834 Total Liabilities S 20,255 164,004 32,141 5,043 - 40,488 261,931

DEFERRED INFLOWS OF RESOURCES S
Deferred Inflows of Resources 902 2,989 2,118 236 - 1,702 7,947

NET POSITION S
Net Investment in Capital Assets S 79,066 221,626 13,068 - - 5 313,765 Restricted for:

Debt Service 304 2,765 - - - - 3,069 Capital Projects - 28,063 - - - - 28,063 Airport - 9,708 - - - - 9,708
Subsidence - - - - 185,209 - 185,209
Unrestricted 5,580 12,477 7,575 (2,427) - 2,545 25,750 Total Net Position 84,950$ 274,639 $ 20,643 $ (2,427) $ 185,209 $ 2,550 $ 565,564 $ Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
City of Long Beach
(In Thousands)
September 30, 2022
Combining Statement of Net Position
Nonmajor Enterprise Funds
Land and Other Capital Assets Not Being Depreciated
Capital Assets, Net of Accumulated Depreciation/Amortization 144 145
See accompanying Independent Auditors’ Report
Total
Nonmajor
Solid Waste Development Proprietary
Sewer Airport Management Towing Subsidence Services Funds Operating Revenues:

Licenses and Permits - - 2,886 - - 30,634 33,520 Fines and Forfeitures - 57 - - - - 57 Fees, Concessions and Rentals - 45,579 - - - - 45,579 From Other Agencies 245 4,106 785 - - 393 5,529 Charges for Services 21,356 295 81,165 7,217 - 1,313 111,346 Other 86 - - - - 1,821 1,907 Total Operating Revenues 21,687 50,037 84,836 7,217 - 34,161 197,938 Operating Expenses:

Personnel Services 4,506 11,535 14,924 3,252 - 13,403 47,620 Maintenance and Other Operations 7,564 28,151 68,512 3,938 - 13,187 121,352 Rental Expense - 391 391
Depreciation/Amortization 2,787 15,231 777 - - 9 18,804 Total Operating Expenses 14,857 54,917 84,604 7,190 - 26,599 188,167 Operating Income (Loss) 6,830 (4,880) 232 27 - 7,562 9,771 Non-Operating Income (Expenses):

Interest Income 121 547 217 22 1,486 329 2,722 Interest Expense (212) (5,647) - - - - (5,859) Unrealized Investment Loss (549) (2,650) (1,157) (60) (8,042) (1,682) (14,140) - - 1 - - - 1 Operating Grants - - 188 - - - 188 Other Income (Expenses) 7 989 2 - 614 - 1,612 Other Expense (937) (3,885) - - - - (4,822) Total Non-Operating Income (Expenses) (1,570) (10,646) (749) (38) (5,942) (1,353) (20,298) Income Before Contributions 5,260 (15,526) (517) (11) (5,942) 6,209 (10,527) Capital Grants and Contributions 20 41,043 - - - - 41,063 Transfers:

Transfers In - - - - - 23 23 Transfers Out - (122) (50) - - (914) (1,086) Change in Net Position 5,280 25,395 (567) (11) (5,942) 5,318 29,473 Net Position - October 1 79,670 249,244 21,210 (2,416) 191,151 (2,768) 536,091 Net Position - September 30 84,950$ 274,639 $ 20,643$ (2,427)$ 185,209$ 2,550$ 565,564 $ 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, 2022
(In Thousands)
146
See accompanying Independent Auditors’ Report
Total
Nonmajor
Development Proprietary
Sewer Airport Towing Subsidence Services Funds
Cash Flows from Operating Activities:

Receipts from Customers 21,485$ 45,292$ 82,408$ 7,222$ -$ 33,297$ 189,704$ Receipts from Other Entities 245 - 785 - - - 1,030 Receipts from Other Funds - 546 - 37 - - 583 Payments for Employee Salaries (4,943) (12,280) (15,848) (3,304) - (14,878) (51,253) Payments for Goods and Services (7,236) (18,506) (62,596) (3,978) - (14,308) (106,624) Payments to Other Funds (57) - (236) (26) - - (319) Payments to Other Entities - (7,434) - - - - (7,434) Other Income 128 162 2 - - - 292 Other Expense (1,461) (3,885) - - - - (5,346) Net Cash Provided by (Used for) Operating Activities 8,161 3,895 4,515 (49) - 4,111 20,633 Cash Flows from Non-Capital Financing Activities:

Operating Subsidies Received from Other Funds - - 100 - - 100 Transfers In - - - - - 23 23 Transfers Out - (122) (50) - - (914) (1,086) Net Cash Used for Non-Capital Financing Activities - (122) 50 - - (891) (963) Cash Flows from Capital and Related Financing Activities:

Proceeds from the Sale of Capital Assets - - 1 - - - 1 Proceeds from Issuance of Refunding Debt - 121,278 - - - - 121,278 Receipts of Contributed Capital 20 34,764 - - - - 34,784 Receipts from Passenger Facility Charges - 6,279 - - - - 6,279 Receipts of Federal Subsidy - 827 - - - - 827 Payments for Capital Acquisitions (6,907) (46,329) - - - (393) (53,629) Payments of Principal on Bonds Payable (388) (95,803) - - - - (96,191) Payments of Interest S (342) (6,202) - - - - (6,544) Net Cash Provided by (Used for)
(7,617) 14,814 1 - - (393) 6,805 Cash Flows from Investing Activities:
- 7,449 - - - - 7,449 Receipts of Interest 122 540 217 22 2,101 329 3,331 Changes in Investments (549) (2,650) (1,157) (60) (8,042) (1,682) (14,140) (427) 5,339 (940) (38) (5,941) (1,353) (3,360) Net Increase (Decrease) in Cash and Cash Equivalents 117 23,926 3,626 (87) (5,941) 1,474 23,115 Cash and Cash Equivalents - October 1 12,565 57,361 23,385 1,469 191,150 36,685 322,615 Cash and Cash Equivalents - September 30 12,682$ 81,287$ 27,011$ 1,382$ 185,209 $ 38,159$ 345,730$ Operating Income (Loss) 6,830$ (4,880) 232 $ 27$ -$ 7,562$ 9,771$ Adjustments to Reconcile Operating Income (Loss) to Net S Cash Provided by Operating Activities:

Operating Activities:

Depreciation and Amortization Expense 2,787 15,231 777 - - 9 18,804 Other Income 82 162 2 - - - 246 Other Expense (1,183) (3,885) - - - - (5,068) (Increase) Decrease in Accounts Receivable, Net S (276) (368) (1,678) 5 - (54) (2,371) Increase (Decrease) in Amounts Due from Other Governments 245 (11,540) - - - - (11,295) (Increase) Decrease in Amounts Due from Other Funds - 546 (236) 37 614 (40) 921 Increase in Inventory (53) - - - - - (53) (Increase) in Other Operating Assets - (64) - - - - (64) Increase (Decrease) in Accounts Payable 346 9,709 6,457 (40) - 165 16,637 (Decrease) in Accrued Wages Payable (438) (745) (924) (52) - (1,475) (3,634) (Decrease) in Amounts Due to Other Funds (87) - (150) (26) - (1,286) (1,549) Increase (Decrease) in Unearned Revenues (113) (271) 56 - (614) (3,749) (4,691) Increase (Decrease) in Collections Held in Trust 21 - (21) - - 2,979 2,979 Total Adjustments 1,331 8,775 4,283 (76) - (3,451) 10,862 Net Cash Provided by (Used for) Operating Activities 8,161$ 3,895$ 4,515$ (49)$ -$ 4,111$ 20,633$ Combining Statement of Cash Flows
Nonmajor Enterprise Funds
City of Long Beach
(In Thousands)
For the Fiscal Year Ended September 30, 2022
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
147146
Total
Nonmajor
Development Proprietary
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.

148
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 -$ 27,446$ 38,567$ 37,072$ 8,243$ 23,314 $ 134,642$ Non-Pooled Cash and Cash Equivalents - 1,566 12,873 - - - 14,439 Receivables:

Accounts Receivable 14 1,218 39 - - 145 1,416 Due from Other Funds 1,157 61 13 614 168 13,357 15,370 Allowance for Receivables - - (24) - - - (24) Deposits - - - - - 7,599 7,599 Inventory - - 3,119 - - - 3,119 Other Assets - Current - 148 - - - 1,694 1,842 Total Current Assets 1,171 30,439 54,587 37,686 8,411 46,109 178,403 Noncurrent Assets:

Noncurrent Receivables:

Advances to Other Funds - - 21,832 - - 3,587 25,419 Capital Assets:
29,877 7,075 - - - - 36,952 310,371 41,375 65,164 - 4 - 416,914 Other Assets - Long-Term 6,000 - - - - - 6,000 Total Noncurrent Assets 346,248 48,450 86,996 - 4 3,587 485,285 Total Assets 347,419 78,889 141,583 37,686 8,415 49,696 663,688

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 286 11,366 4,763 3,016 2,218 3,369 25,018

LIABILITIES
Current Liabilities Payable from Current Assets:

Accounts Payable 1,325 3,791 2,897 158 2,743 10,988 21,902 Accrued Wages and Benefits 2 105 46 61 17 - 231 Accrued Interest Payable - 544 134 - - - 678 Due to Other Funds 3,238 395 195 386 71 25 4,310 Collections Held in Trust - - - - - 4,539 4,539 - 1,895 837 391 404 3,402 6,929 Accrued Claims - Current - - - 20,844 11,755 - 32,599 Environmental Remediation - Current - - 115 - - - 115 Financed Purchase Obligations - Current - 7,605 3,236 - - - 10,841 Bonds Payable Due within One Year - - 1,600 - - - 1,600 Other Long Term Obligation - Current 5,280 - - - - - 5,280 Total Current Liabilities 9,845 14,335 9,060 21,840 14,990 18,954 89,024 Noncurrent Liabilities:
- 4,137 2,075 910 657 528 8,307 Accrued Claims - - - 111,798 35,308 - 147,106 Environmental Remediation - - 485 - - - 485 Financed Purchase Obligations - 20,087 16,139 - - - 36,226 Other Long Term Obligations 279,296 - - - - - 279,296 Bonds Payable - - 13,518 - - - 13,518 OPEB Liability - 117 58 19 14 27 235 Net Pension Liability 891 34,407 14,457 8,891 5,800 9,005 73,451 Total Noncurrent Liabilities 280,187 58,748 46,732 121,618 41,779 9,560 558,624 Total Liabilities 290,032 73,083 55,792 143,458 56,769 28,514 647,648

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 112 2,582 1,956 506 313 1,065 6,534

NET POSITION (DEFICIT)
Net Investment in Capital Assets S 55,522 22,122 43,544 - 4 - 121,192 Restricted for:

Capital Projects - 1,593 - - - - 1,593 Insurance - - - - - 18,611 18,611 Unrestricted 2,039 (9,125) 45,054 (103,262) (46,453) 4,875 (106,872) Total Net Position (Deficit) 57,561$ 14,590$ 88,598$ (103,262)$ (46,449) $ 23,486$ 34,524$ Capital Assets, Net of Accumulated Depreciation/Amortization Compensated Absences and Accrued Employee Benefits
Compensated Absences and Accrued Employee Benefits
Land and Other Capital Assets Not Being Depreciated
City of Long Beach
Internal Service Funds
(In Thousands)
September 30, 2022
Combining Statement of Net Position (Deficit)
148 149
See accompanying Independent Auditors’ Report
Total
Workers' Genera l Internal
Civic General Fleet Compensation Liability Employee Service Center Services Services Insuranc e Insurance Benefits Funds Operating Revenues:

Billing to Other Departments 25,140$ 59,233$ 55,288$ 30,357$ 39,477$ 310,077$ 519,572$ Other 14 3,903 841 238 125 - 5,121 Total Operating Revenues 25,154 63,136 56,129 30,595 39,602 310,077 524,693 Operating Expenses:

Personnel Services - 23,150 10,149 5,867 4,004 4,088 47,258 Maintenance and Other Operations 10,626 41,615 23,694 3,230 3,912 4,232 87,309 Insurance Premiums - - - - 14,077 - 14,077 Self-Insured Losses - - - 12,520 14,068 - 26,588 Compensated Absences - - - 9,819 - 63,286 73,105 Employee Benefits - - - - - 255,494 255,494 Depreciation 9,323 8,816 13,549 3 1 - 31,692 Total Operating Expenses 19,949 73,581 47,392 31,439 36,062 327,100 535,523 Operating Income (Loss) 5,205 (10,445) 8,737 (844) 3,540 (17,023) (10,830) Non-Operating Income (Expenses):

Interest Income - 6 83 295 57 109 550 Interest Expense (5,685) (920) (1,230) - - - (7,835) Unrealized Investment Loss - (1,143) (1,727) (1,609) (324) (1,034) (5,837) - - 1,175 - - - 1,175 Operating Grants - 936 - - - - 936 Other Income 198 - 1,491 - - 9,837 11,526 Other Expense (1) (34) (1,418) - - - (1,453) Total Non-Operating Income (Expenses) (5,488) (1,155) (1,626) (1,314) (267) 8,912 (938) Income (Loss) before Contributions
and Transfers (283) (11,600) 7,111 (2,158) 3,273 (8,111) (11,768) Transfers:

Transfers In 1,090 6,403 218 - - 110 7,821 Transfers Out - (3,745) - - - (6,929) (10,674) Change in Net Position 807 (8,942) 7,329 (2,158) 3,273 (14,930) (14,621) Net Position (Deficit) - October 1 56,754 23,532 81,269 (101,104) (49,722) 38,416 49,145 57,561$ 14,590$ 88,598$ (103,262)$ (46,449)$ 23,486$ 34,524$ Gain (Loss) on Disposition of Capital Assets
Net Position (Deficit) - September 30
City of Long Beach
(In Thousands)
For the Fiscal Year Ended September 30, 2022
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position (Deficit) Internal Service Funds
150
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 -$ 3,951$ 22$ -$ -$ -$ 3,973$ Receipts from Other Funds 24,101 61,559 56,729 31,618 39,434 320,090 533,531 Payments to Other Entities (1,777) (289) (120) (9) (41) - (2,236) Payments for Employee Salaries (11) (23,652) (10,409) (6,157) (4,087) (9,708) (54,024) Payments for Goods and Services (10,447) (40,044) (25,671) (3,153) (2,266) - (81,581) Changes on Compensated Absences - 167 (55) (9,770) 256 (62,752) (72,154) Payments for Employee Benefits (416) (140) (528) (339) (124) (255,563) (257,110) Payments for Liability Claims - - - (11,958) (25,387) - (37,345) Payments to Other Funds - - (20,232) - - - (20,232) Other Income 198 - 1,491 - - 1,689 Other Expense (1) (34) (1,418) - - 9,837 8,384 Net Cash Provided by (Used for) Net Cash Provided by (Used for) Operating Activities 11,647 1,518 (191) 232 7,785 1,904 22,895 Cash Flows from Non-Capital Financing Activities:

Operating Grants Received from Other Governments - 936 - - - - 936 Operating Subsidies Paid to Other Funds - (3,745) - - - (6,929) (10,674) Operating Subsidies Received from Other Funds 1,090 6,403 218 - - 110 7,821 Net Cash Provided by (Used for)
Non-Capital Financing Activities 1,090 3,594 218 - - (6,819) (1,917) Cash Flows from Capital and Related Financing Activities:

Proceeds from the Sale of Capital Assets - - 1,313 - - - 1,313 Proceeds from Issuance Of Long-Term Obligations - - 28,873 - - - 28,873 Payments for Capital Acquisitions (2,110) 4,350 (11,600) - - - (9,360) Payments of Principal on Bonds Payable - - (16,463) - - - (16,463) Payments of Principal on Other Long-Term Obligations (5,189) (5,191) (1,937) - - - (12,317) Payments of Interest (5,685) (976) (326) - - (47) (7,034) Net Cash Provided by (Used for)
Capital and Related Financing Activities (12,984) (1,817) (140) - - (47) (14,988) Cash Flows from Investing Activities:

Receipts of Interest - 6 83 295 58 109 551 Changes in Investments - (1,143) (1,727) (1,609) (324) (1,034) (5,837) Net Cash Provided by (Used for) Investing Activities - (1,137) (1,644) (1,314) (266) (925) (5,286) Net Decrease in Cash and Cash Equivalents (247) 2,158 (1,757) (1,082) 7,519 (5,887) 704 Cash and Cash Equivalents - October 1 247 26,854 53,197 38,154 724 29,201 148,377 Cash and Cash Equivalents - September 30 -$ 29,012$ 51,440$ 37,072$ 8,243$ 23,314$ 149,081 $ Operating Income (Loss) 5,205$ (10,445)$ 8,737$ (844)$ 3,540$ (17,023)$ (10,830)$ Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by (Used for) Operating Activities:
9,323 8,816 13,549 3 1 - 31,692 198 - 1,491 - - 9,837 11,526 (1) (34) (1,418) - - - (1,453) (14) 48 (8) - - 90 116 - - 30 - - - 30 (Increase) Decrease in Amounts Due from Other Funds (1,039) 2,326 600 1,023 (168) 9,721 12,463 (Increase) Decrease in Other Operating Assets 375 (148) - - - (1,694) (1,467) (196) (475) (1,977) 77 1,646 4,492 3,567 Increase (Decrease) in Accrued Wages Payable (427) 1,719 (843) (580) 49 (3,986) (4,068) (1,777) (289) (20,352) (9) (41) 25 (22,443) - - - 562 2,758 - 3,320 - - - - - 442 442 Total Adjustments 6,442 11,963 (8,928) 1,076 4,245 18,927 33,725 Net Cash Provided by (Used for) Operating Activities 11,647 $ 1,518$ (191)$ 232$ 7,785$ 1,904$ 22,895 $ Borrowing under Other Long-Term Obligations 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, 2022
(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
Decrease in Amounts Due from Other Governments
Increase (Decrease) in Accounts Payable
151150
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.

152
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$ 1,833$ 652$ 3,435 $ Non-Pooled Cash and Cash Equivalents - - 9,778 - Property Taxes Receivable, Net - - 22 - Accounts Receivable - - - - Prepaid Expense - - - - Land - - - - Total Assets 89 1,833 10,452 3,435 LIABILITIES:

Accounts Payable 89 - - - Total Liabilities 89 - - - NET POSITION:

Held in Trust -$ 1,833$ 10,452 $ 3,435$ Belmont Intermodal
Shore Taxes Special Containe r
Parking Oil Assessmen t Transfer
District Rights Districts Facility JP A
ADDITIONS:

Contributions -$ -$ 3,314$ -$ Taxes - - 2,395 - Grants - - - - Use of Money and Property - 14 - - Miscellaneous Revenue - - 7 - Total Additions - 14 5,716 - DEDUCTIONS:

Accounts Payable 89 - - - Total Liabilities 89 - - - NET POSITION:

Held in Trust -$ 1,833$ 10,452 $ 3,435$ Belmont Intermodal
Shore Taxes Special Containe r
Parking Oil Assessmen t Transfer
District Rights Districts Facility JP A
ADDITIONS:

Contributions -$ -$ 3,314$ -$ Taxes - - 2,395 - Grants - - - - Use of Money and Property - 14 - - Miscellaneous Revenue - - 7 - Total Additions - 14 5,716 - DEDUCTIONS:

Administrative Expense - - 60 99 Payments to Bond Holders - - 5,327 2,966 Payments to Others - - - - Total Deductions - - 5,387 3,065 Change in Net Position - 14 329 (3,065) Net Position, October 1 - 1,819 10,123 6,500 Net Position, September 30 -$ 1,833$ 10,452 $ 3,435$ (In Thousands)
City of Long Beach
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Fiscal Year Ended September 30, 2022
City of Long Beach
Combining Statement of Fiduciary Net Position
Custodial Funds
September 30, 2022
(In Thousands)
Earthquake Los Cerritos Other Total
Assessment Wetlands Custodia l Custodial
District Authority Funds Funds
ASSETS:
798$ -$ 4,598$ 11,405 $ Pooled Cash and Cash Equivalents - 635 - 10,413 Non-Pooled Cash and Cash Equivalents 1 - 120 143 Property Taxes Receivable - 185 1,287 1,472 Accounts Receivable - 8 - 8 Prepaid Expense - 11,000 - 11,000 Lan d 799 11,828 6,005 34,441 Total Assets LIABILITIES:
- 208 2,327 2,624 Accounts Payable - 208 2,327 2,624 Total Liabilities NET POSITION:
799$ 11,620$ 3,678$ 31,817 $ Held in Trust Earthquake Los Cerritos Other Total
Assessment Wetlands Custodia l Custodial
District Authority Funds Funds
ADDITIONS:
-$ 39 $ -$ 3,353$ Contribution s - - 8,727 11,122 Taxes - 821 - 821 Grants - 66 19 99 Use of Money and Propert y - 4 - 11 Miscellaneous Revenue - 930 8,746 15,406 Total Additions DEDUCTIONS:
28 - 27 214 Administrative Expense - - - 8,293 Payments to Bond Holder s - 579 9,413 9,992 Payments to Others 28 579 9,440 18,499 Total Deductions (28) 351 (694) (3,093) Change in Net Position 827 11,269 4,372 34,910 Net Position, October 1 799$ 11,620$ 3,678$ 31,817 $ Net Position, September 30 154
See accompanying Independent Auditors’ Report
Mayor's
Fund Total
Miller to End Se ptember 30,
Library Homelessness 2022
ASSETS
Pooled Cash and Cash Equivalents 556$ 5$ 561$

NET POSITION
Held in Trust for Private Purpose
Trust Funds 556$ 5$ 561$
Fiduciary Funds
Private Purpose Trust Funds
Mayor's
Fund Total
Miller to End Se ptember 30,
Library Homelessness 2022
Additions:

Use of Money and Property -$ -$ -$ Deductions:

Administrative Expense 57 - 57 Change in Net Position (57) - (57) Net Position, October 1 613 5 618 Net Position, September 30 556$ 5$ 561$ City of Long Beach
Fiduciary Funds
Private Purpose Trust Funds
Combining Statement of Fiduciary Net Position
September 30, 2022
(In Thousands)
(In Thousands)
Combining Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended September 30, 2022
City of Long Beach
154
OTHER

SUPPLEMENTARY

INFORMATION
155 155
See accompanying Independent Auditors’ Report
Total
Uplands Combined
General Oil General
Fund Fund Eliminations Fund
ASSETS
Pooled Cash and Cash Equivalents 174,329$ 16,442$ -$ 190,771$ Non-Pooled Cash and Cash Equivalents 1,377 - - 1,377 Interest Receivable 655 - - 655 Property Taxes 119,181 - - 119,181 Accounts Receivable 37,776 1,863 - 39,639 Due from Other Governments 39,585 - - 39,585 Due from Other Funds 26,503 - - 26,503 Lease Receivable 143,309 - - 143,309 Allowance for Receivables (10,254) - - (10,254) Other Assets 1,632 - - 1,632 Total Assets 534,093 18,305 - 552,398

LIABILITIES
Accounts Payable 19,913 278 - 20,191 Accrued Wages and Benefits Payable 1,902 - - 1,902 Due to Other Funds 7,368 - - 7,368 Unearned Revenues 6,995 - - 6,995 Deposits and Collections Held in Trust 4,716 - - 4,716 Advances from Other Funds 21,832 - - 21,832 Total Liabilities 62,726 278 - 63,004

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 258,544 - - 258,544

FUND BALANCES
Nonspendable 1,632 - - 1,632 Restricted 2,921 - - 2,921 Committed 60,101 17,610 - 77,711 Assigned 148,586 - - 148,586 Unassigned (417) 417 - - Total Fund Balances 212,823 18,027 - 230,850 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 534,093$ 18,305$ -$ 552,398$ Receivables:
(In Thousands)
City of Long Beach
General Fund
Combining Balance Sheet
September 30, 2022
156
See accompanying Independent Auditors’ Report
Total
Uplands Combined
General Oil General
Fund Fund Eliminations Fund
Revenues:

Taxes:

Property 204,899 $ -$ -$ 204,899$ Sales 171,191 - - 171,191 Utility Users 40,349 - - 40,349 Other Taxes 44,420 - - 44,420 Franchise Fees 20,813 - - 20,813 Licenses and Permits 42,376 - - 42,376 Fines and Forfeitures 17,670 - - 17,670 Use of Money and Property 7,410 17,457 - 24,867 From Other Agencies 7,883 - - 7,883 Charges for Services 46,217 - - 46,217 Other 1,386 - - 1,386 Total Revenues 604,614 17,457 - 622,071 Expenditures:

Legislative and Legal 17,124 - - 17,124 General Government 35,007 - - 35,007 Public Safety 392,868 - - 392,868 Public Health 15,051 - - 15,051 Community and Cultural 57,045 - - 57,045 Public Works 61,622 - - 61,622 Oil Operations 2 2,977 - 2,979 Total Current Expenditures 578,719 2,977 - 581,696 Capital Improvements 116 - - 116 Debt Service:

Principal 1,446 - - 1,446 Interest 11 - - 11 Debt Administration Fees 16 - - 16 Total Expenditures 580,308 2,977 - 583,285 Excess of Revenues over
Expenditures 24,306 14,480 - 38,786 Other Financing Sources (Uses):

Proceeds from Sale of Capital Asset 1,180 - - 1,180 Transfers In 89,669 - (12,031) 77,638 Transfers Out (59,435) (12,031) 12,031 (59,435) Total Other Financing Sources (Uses) 31,414 (12,031) - 19,383 Net Change in Fund Balances 55,720 2,449 - 58,169 Fund Balances - October 1 157,103 15,578 - 172,681 Fund Balances - September 30 212,823$ 18,027$ -$ 230,850$ (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, 2022
156 157
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 199,545$ -$ 199,545$ 204,899$ -$ -$ 204,899$ 5,354$ Sales Taxes 140,616 - 140,616 171,191 - - 171,191 30,575 Utility Users Taxes 33,195 - 33,195 40,349 - - 40,349 7,154 Other Taxes 36,446 - 36,446 44,420 - - 44,420 7,974 Franchise Fees 27,901 - 27,901 20,813 - - 20,813 (7,088) Licenses and Permits 32,444 - 32,444 42,376 - - 42,376 9,932 Fines and Forfeitures 19,379 - 19,379 17,670 - - 17,670 (1,709) Use of Money and Property 16,602 16,618 33,220 7,410 17,457 - 24,867 (8,353) From Other Agencies 7,033 - 7,033 7,883 - - 7,883 850 Charges for Services 45,184 - 45,184 46,217 - - 46,217 1,033 Other 991 - 991 1,386 - - 1,386 395 Proceeds from Sale of Capital Asset - - - 1,180 - - 1,180 1,180 Transfers In 22,699 - 22,699 77,638 - 6,928 84,566 61,867 Total Revenues 582,035 16,618 598,653 683,432 17,457 6,928 707,817 109,164 Expenditures:

Current:

Legislative and Legal
Mayor and City Council 8,579 - 8,579 6,652 - 110 6,762 1,817 City Attorney 3,996 - 3,996 4,517 - 110 4,627 (631) City Clerk 6,484 - 6,484 5,958 - 24 5,982 502 General Government
City Auditor 3,198 - 3,198 2,239 - (174) 2,065 1,133 City Manager 10,941 - 10,941 9,441 - 58 9,499 1,442 Civil Service 3,651 - 3,651 3,622 - 108 3,730 (79) Financial Management 24,560 - 24,560 18,237 - 323 18,560 6,000 Planning and Building 1,162 - 1,162 1,960 - 105 2,065 (903) Public Safety
Police 267,636 - 267,636 250,917 - 2,674 253,591 14,045 Fire 118,353 - 118,353 118,553 - 1,994 120,547 (2,194) Disaster Preparedness 13,502 - 13,502 13,435 - 128 13,563 (61) City Prosecutor 7,485 - 7,485 7,454 - 253 7,707 (222) Planning and Building-Code Enforcement 3,774 - 3,774 3,559 - (168) 3,391 383 Public Health 28,587 - 28,587 15,160 - 143 15,303 13,284 Community and Cultural
Development Services 7,354 - 7,354 2,496 - - 2,496 4,858 Library 21,841 - 21,841 21,312 - 81 21,393 448 Parks and Recreation 35,283 - 35,283 33,242 - 303 33,545 1,738 Public Works 79,033 - 79,033 61,906 - 856 62,762 16,271 Oil Operations - 3,291 3,291 2 2,977 - 2,979 312 Capital Outlay 529 - 529 116 - - 116 413 Debt Service 512 - 512 1,473 - - 1,473 (961) Transfers Out 67,941 (11,703) 56,238 47,404 12,031 - 59,435 (3,197) Total Expendtures 714,401 (8,412) 705,989 629,655 15,008 6,928 651,591 54,398 Net Change in Budgetary Fund Balance: (132,366)$ 25,030$ (107,336)$ 53,777$ 2,449$ -$ 56,226$ 163,562$ General Uplands Oil Combined
Change in Fund Balance - September 30, Budgetary Basis 53,777$ 2,449$ 56,226$ Add: Encumbrances 1,943 - 1,943 Change in Fund Balance - September 30, GAAP Basis 55,720 2,449 58,169 Fund Balance, October 1, GAAP Basis 157,103 15,578 172,681 Fund Balance, September 30, GAAP Basis 212,823$ 18,027$ 230,850$ 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, 2022
(In Thousands)
Total
Uplands Combined
General Oil General
Fund Fund Eliminations Fund
Revenues:

Taxes:

Proceeds from Sale of Capital Asset 1,180 - - 1,180 Transfers In 89,669 - (12,031) 77,638 Transfers Out (59,435) (12,031) 12,031 (59,435) Total Other Financing Sources (Uses) 31,414 (12,031) - 19,383 Net Change in Fund Balances 55,720 2,449 - 58,169 Fund Balances - October 1 157,103 15,578 - 172,681 Fund Balances - September 30 212,823$ 18,027$ -$ 230,850$ (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, 2022
158
See accompanying Independent Auditors’ Report
Variance with
Final Actual on a Final Budget
Adopted Amended Budgetary Favorable /
Revenues: Budget Budget Basis (Unfavorable)
Sales Taxes 69,037$ 69,037$ 85,981$ 16,944$ Use of Money and Property 160 160 - (160) Total Revenues 69,197 69,197 85,981 16,784 Expenditures:

General Government 208 208 208 - Public Safety 37,860 39,325 39,325 -
Public Works 1,000 1,683 1,157 526 Community and Cultural - 400 227 173 Transfers Out (a)
35,263 31,766 32,626 (860)
Total Expenditures 74,331 73,382 73,543 (161) Net Change in Fund Balance (Deficit) (5,134) (4,185) 12,438 16,945 Fund Balance October 1, GAAP Basis 22,794 22,794 22,794 Fund Balance September 30, Budgetary Basis 17,660$ 18,609$ 35,232$ Fund Balances as of September 30, 2022
Assigned for Subsequent year Programmed Uses, October 1 22,794$ Less:

Programmed Releases in Fiscal Year 2022 (b)
(16,734)
Add:

New Programmed Assignments as of September 30 (c)
19,312
Amounts Assigned for Subsequent Year Programmed Uses 25,372 Unassigned Fund Balance 9,860
Total Measure A Fund Balance 35,232$
Notes:
(b) Amounts released from reserves during fiscal year to fund Measure A projects as programmed in prior fiscal years. (c) 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, 2022
(In Thousands)
(a) Amounts "transferred out" are transferred to the City's Capital Projects fund for use in authorized Measure A projects. 158 159
See accompanying Independent Auditors’ Report
Variance
with Final
Actual on Budget
Budgetary Positive
Original Final Basis (Negative)
Revenues:

Property Taxes 3,000$ 3,000$ -$ (3,000)$ Other Taxes 1,027 1,027 - (1,027)
Licenses and Permits 125 125 - (125) Use of Money and Property 806 1,132 - (1,132) From Other Agencies 54,817 92,014 86,775 (5,239) Charges for Services - 13,435 - (13,435) Other - (134) 10,974 11,108 Transfers In 110,676 84,501 46,536 (37,965) Total Revenues 170,451 195,100 144,285 (50,815) Expenditures:

General Government
Financial Management 200 200 - 200 Public Works 28,366 28,256 4,630 23,626 Capital Improvements 91,823 153,108 167,348 (14,240) Transfers Out 48,946 49,252 5,555 43,697 Total Expenditures 169,335 230,816 177,533 53,283 Net Change in Budgetary Fund Balance (Deficit) 1,116$ (35,716)$ (33,248)$ 2,468$ Reconciliation of Fund Balances, Budgetary Basis to GAAP Basis Change in Fund Balance - September 30, Budgetary Basis (33,248)$ Add: Encumbrances 76,281
Change in Fund Balance - September 30, GAAP Basis 43,033 Fund Balance, October 1, GAAP Basis 158,060
Fund Balance, September 30, GAAP Basis 201,093$
Budgeted Amounts
For the Fiscal Year Ended September 30, 2022
(In Thousands)
City of Long Beach
General Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis)
160

Intentionally Left Blank

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 distribution 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.

Summary financial information for the consolidated Gas Utility Fund is presented on the following pages (in thousands) as of September 30, 2022:

161

Summary financial information for the consolidated Gas Utility Fund is presented on the following pages (in thousands) as of September 30, 2022:

162
Gas LBBFA Gas Total Elimination Total
Operating Prepay Before Debit Gas Utility
Function Function Elimination (Credit) Fun d
ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 53,941 $ 61$ 54,002$ -$ 54,002 $ Non-Pooled Cash and Cash Equivalents 1 44 45 - 45 Receivables:

Interest Receivable - 20 20 - 20 Accounts Receivable 16,330 4,059 20,389 - 20,389 Due from Other Funds 603 - 603 (593) 10 Allowance for Receivables (3,024) - (3,024) - (3,024) Inventory 3,679 - 3,679 - 3,679 Prepaid Gas - Current - 23,893 23,893 - 23,893 Other Assets 4 - 4 - 4 Total Current Assets 71,534 28,077 99,611 (593) 99,018 Noncurrent Assets:

Restricted Noncurrent Assets:

Non-Pooled Investments - 29,137 29,137 - 29,137 Noncurrent Receivables:

Fair Value - Commodity Swap - 294,922 294,922 - 294,922 Capital Assets:

Land and Other Assets Not Being Depreciated 19,343 - 19,343 - 19,343 Capital Assets, Net of Accumulated Depreciation/Amortization 168,563 - 168,563 - 168,563 Prepaid Gas - Long-Term - 286,887 286,887 - 286,887 Total Noncurrent Assets 187,906 610,946 798,852 - 798,852 Total Assets 259,440 639,023 898,463 (593) 897,870

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 11,183 2,037 13,220 - 13,220 Current Liabilities Payable from Current Assets:

Accounts Payable 9,311 1,041 10,352 - 10,352 Accrued Wages 104 - 104 - 104 Accrued Interest Payable 103 9,523 9,626 - 9,626 Due to Other Funds 1,175 593 1,768 (593) 1,175 Unearned Revenues 2,470 - 2,470 - 2,470 Customers Deposits 2,913 - 2,913 - 2,913 Compensated Absences and Accrued Employee Benefits 1,963 - 1,963 - 1,963 Financed Purchase Obligations - Current 1,186 - 1,186 - 1,186 Bonds Payable Due within One Year - 18,645 18,645 - 18,645 Total Current Liabilities 19,225 29,802 49,027 (593) 48,434 Noncurrent Liabilities:

Fair Value - Interest Rate Swap - 2,037 2,037 - 2,037 Compensated Absences and Accrued Employee Benefits 4,192 - 4,192 - 4,192 Financed Purchase Obligations 9,147 - 9,147 - 9,147 Bonds Payable - 520,870 520,870 - 520,870 Net Pension Liability 33,359 - 33,359 - 33,359 Total OPEB Liability 119 - 119 119 Total Noncurrent Liabilities 46,817 522,907 569,724 - 569,724 Total Liabilities 66,042 552,709 618,751 (593) 618,158 Deferred Inflows of Resources 2,532 294,922 297,454 - 297,454 Net Investment in Capital Assets 176,156 - 176,156 - 176,156 Restricted for:

Capital Projects 21,004 - 21,004 - 21,004 Unrestricted 4,889 (206,571) (201,682) - (201,682) Total Net Position (Deficit) 202,049$ (206,571)$ (4,522)$ -$ (4,522) $

NET POSITION (DEFICIT)
September 30, 2022
(In Thousands)
City of Long Beach
Combining Statement of Net Position
Gas Utility Fund

LIABILITIES

DEFERRED INFLOWS OF RESOURCES
163
Gas LBBFA Gas Total Elimination Total
Operating Prepay Before Debi t Gas Utility
Function Function Elimination (credit) Fund
Operating Revenues:

From Other Agencies 1,574$ -$ 1,574$ -$ 1,574$ Charges for Services 142,421 39,408 181,829 (39,408) 142,421 Other 120 - 120 - 120 Total Revenues 144,115 39,408 183,523 (39,408) 144,115 Operating Expenses:

Personnel Services 19,004 - 19,004 - 19,004 Purchases of Gas 63,809 16,885 80,694 (39,408) 41,286 Maintenance and Other Operations 28,715 5 28,720 - 28,720 Depreciation/Amortization 7,695 - 7,695 - 7,695 Total Operating Expenses 119,223 16,890 136,113 (39,408) 96,705 Operating Income 24,892 22,518 47,410 - 47,410 Non-Operating Income (Expense):

Interest Income 782 840 1,622 - 1,622 Interest Expense 499 (27,919) (27,420) - (27,420) Unrealized Investment Loss (2,367) - (2,367) - (2,367) Loss on Disposition of Capital Assets (279) - (279) - (279) Other Expense (771) - (771) - (771) Total Non-Operating Income (Expense) (2,136) (27,079) (29,215) - (29,215) Income (Loss) before Contributions
and Transfers 22,756 (4,561) 18,195 - 18,195 Transfers:

Transfers In 4,233 - 4,233 - 4,233 Transfers Out (17,440) - (17,440) - (17,440) Change in Net Position 9,549 (4,561) 4,988 - 4,988 Net Position (Deficit), October 1 192,500 (202,010) (9,510) - (9,510) Net Position (Deficit), September 30 202,049 $ (206,571)$ (4,522)$ -$ (4,522)$ (In Thousands)
City of Long Beach
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Gas Utility Fund
For the Fiscal Year Ended September 30, 2022
164

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, 2022:

Gas LBBFA Gas Eliminations Total
INCREASE (DECREASE) IN CASH AND CASH Operating Prepay Increase Gas Utilit y EQUIVALENTS Function Function (decrease) Fun d
Cash Flows from Operating Activities:

Receipts from Customers 99,724$ 38,211$ -$ 137,935$ Receipts from Other Governments 1,574 - 1,574 Payments for Employee Salaries (20,497) - - (20,497) Payments for Goods and Services (43,348) 1,036 - (42,312) Other Income (Expense) - 4,548 (4,548) - (5,319) - 4,548 (771) Net Cash Provided by Operating Activities 32,134 43,795 - 75,929 Cash Flows from Non-Capital Financing Activities:

Transfers In 4,233 4,233
Payments of Principal on Bonds Payable 402 (16,442) - (16,040) Payments of Interest 488 (28,236) - (27,748) Transfers Out (17,440) - - (17,440) Net Cash Used for Non-Capital Financing Activities (12,317) (44,678) - (56,995) Cash Flows from Capital and Related Financing Activities:

Payments for Capital Acquisitions (18,560) - - (18,560) Payments of Principal on Other Long-Term Obligations (1,764) - - (1,764) Net Cash Used for Capital and Related Financing Activities (20,324) - - (20,324) Cash Flows from Investing Activities:

Receipts of Interest 782 835 - 1,617 Payments for Investments (2,052) - - (2,052) Changes in Investments (2,367) - - (2,367) Net Cash Provided by (Used for) Investing Activities (3,637) 835 - (2,802) Net Increase (Decrease) in Cash and Cash Equivalents (4,144) (48) - (4,192) Cash and Cash Equivalents - October 1 58,086 153 - 58,239 Cash and Cash Equivalents - September 30 53,942$ 105$ -$ 54,047$ Gas LBBFA Gas Eliminations Total
RECONCILIATION OF OPERATING INCOME TO NET CASH Operating Prepay Increase Gas Utilit y PROVIDED BY (USED FOR) OPERATING ACTIVITIES Function Function (decrease) Fund Operating Income (Loss) 24,892$ 22,518$ -$ 47,410$ Adjustments to Reconcile Operating Income to Net Cash
Provided by Operating Activities:

Depreciation and Amortization Expense 7,695 - - 7,695 Other Expense (771) - - (771) (Increase) Decrease in Accounts Receivable, Net (4,565) (1,161) 1,161 (4,565) (Increase) in Amounts Due from Other Funds (10) - - (10) (Increase) Decrease in Other Operating Assets/Gas Prepay 19,241 4,548 - 23,789 Increase (Decrease) in Accounts Payable 2,864 1,041 (1,161) 2,744 (Decrease) in Accrued Wages Payable (1,493) - - (1,493) (Decrease) in Amounts Due to Other Funds (130) (36) - (166) Increase in Unearned Revenues 1,063 - - 1,063 (Increase) Decrease in Other Non-Operating Assets (16,885) 16,885 - - Increase in Collections Held in Trust 233 - - 233 Total Adjustments 7,242 21,277 - 28,519 Net Cash Provided by Operating Activities 32,134$ 43,795$ -$ 75,929$

NON-CASH INVESTING, CAPITAL AND FINANCING ACTIVITIES
Amortization of Bond Premium (Discount), Net -$ 23,689$ -$ 23,689$ Gas Utility Fund
City of Long Beach
For the Fiscal Year Ended September 30, 2022
(In Thousands)
Combining Statement of Cash Flows
Other Expense
165

Summary financial information for the consolidated Tidelands Enterprise Fund is presented on the following pages (in thousands) as of September 30, 2022:

166
See accompanying Independent Auditors’ Report
Consolidated
Aquarium Total Adjustments Tidelands
Tideland Tideland Queen of the Before and Operating
Operating Parking Marina Mary Pacific Elimination Eliminations Total ASSETS
Current Assets:

Pooled Cash and Cash Equivalents 90,653$ 10,395 $ 39,333$ 1,674 $ 8,250 $ 150,305 $ -$ 150,305$ Non-Pooled Cash and Cash Equivalents 4 - 2,615 2,417 1,411 6,447 - 6,447 Receivables:

Interest Receivable 809 - 33 - - 842 - 842 Accounts Receivable 6,894 144 1,139 783 - 8,960 - 8,960 Due from Other Governments 102 15 50 - - 167 (15) 152 Due from Other Funds 35,216 4 - - - 35,220 (11,219) 24,001 Lease Receivable - Current 1,586 - 682 - - 2,268 - 2,268 Allowance for Receivables (284) (3) (755) - - (1,042) - (1,042) Other Assets - - - 195 - 195 - 195 Total Current Assets 134,980 10,555 43,097 5,069 9,661 203,362 (11,234) 192,128 Noncurrent Assets:

Non-Pooled Investments - - 5,840 - - 5,840 - 5,840 Noncurrent Receivables:

Lease Receivable 120,882 - 2,703 - - 123,585 - 123,585 Capital Assets:

Land and Other Capital Assets Not Being Depreciated 62,005 - 1,992 3,442 9,900 77,339 - 77,339 Capital Assets, Net of Accumulated Depreciation/Amortization 137,462 6,895 96,799 2,795 12,950 256,901 - 256,901 Total Noncurrent Assets 320,349 6,895 107,334 6,237 22,850 463,665 - 463,665 Total Assets 455,329 17,450 150,431 11,306 32,511 667,027 (11,234) 655,793

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows of Resources 16,471 - 5,972 36 494 22,973 - 22,973

LIABILITIES
Current Liabilities Payable from Current Assets:

Accounts Payable 9,882 320 447 722 - 11,371 - 11,371 Accrued Wages 90 1 45 1 - 137 - 137 Accrued Interest Payable 37 - 1,966 122 146 2,271 - 2,271 Due to Other Funds 2,872 3,344 276 2 5,420 11,914 (11,219) 695 Unearned Revenues 300 - 1,891 - - 2,191 - 2,191 Collections Held in Trust 152 - - - - 152 - 152 Customers Deposits - - 969 25 - 994 - 994 Due to State of California 15 - - - - 15 (15) - Compensated Absences and Accrued Employee Benefits 2,340 - 765 - - 3,105 - 3,105 Financed Purchase Obligations - Current 43 - - - - 43 - 43 Bonds Payable Due Within One Year 3,020 - 2,100 2,155 4,340 11,615 - 11,615 Other Long Term Obligation - Current 30 - - - - 30 - 30 Total Current Liabilities 18,781 3,665 8,459 3,027 9,906 43,838 (11,234) 32,604 Noncurrent Liabilities:

Unearned Revenues 4,317 - 123 - - 4,440 - 4,440 Compensated Absences and Accrued Employee Benefits 6,335 - 833 - - 7,168 - 7,168 Financed Purchase Obligations 142 - - - - 142 - 142 Other Long Term Obligations 251 - - - - 251 - 251 Bonds Payable 98 - 109,483 7,385 38,730 155,696 - 155,696 Total OPEB Liability 174 - 26 - - 200 - 200 Net Pension Liability 39,824 - 15,865 - - 55,689 - 55,689 Total Noncurrent Liabilities 51,141 - 126,330 7,385 38,730 223,586 - 223,586 Total Liabilities 69,922 3,665 134,789 10,412 48,636 267,424 (11,234) 256,190

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows of Resources 125,314 - 4,625 - - 129,939 - 129,939

NET POSITION
Net Investment in Capital Assets 192,769 6,895 (4,318) (3,304) (19,739) 172,303 - 172,303 Restricted for:

Debt Service 26 - 139 2,431 1,014 3,610 - 3,610 Capital Projects - 473 - - - 473 - 473 Tidelands - - - - 57,003 57,003 - 57,003 Unrestricted 83,769 6,417 21,168 1,803 (53,909) 59,248 - 59,248 Total Net Position 276,564$ 13,785$ 16,989$ 930$ (15,631)$ 292,637 $ -$ 292,637$ September 30, 2022
(In Thousands)
Combining Statement 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 127$ 344 $ -$ 1,002$ -$ 1,473$ -$ 1,473$ Fines and Forfeitures 282 - - - - 282 - 282 Fees, Concessions, and Rentals 4,947 10,022 26,041 - - 41,010 - 41,010 Charges for Services 30,809 211 370 - - 31,390 - 31,390 Other 186 1 27 - - 214 - 214 Total Revenues 36,351 10,578 26,438 1,002 - 74,369 - 74,369 Operating Expenses:

Long Beach City CouncilApril 18, 2023

Long Beach City Council
April 18, 2023