Manhattan Beach City Council
January 17, 2023

CITY OF MANHATTAN BEACH

MANHATTAN BEACH,

CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022



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ELECTED OFFICIALS & EXECUTIVE STAFF



ELECTED OFFICIALS TERM ENDS
Mayor Steve Napolitano November 2024
Mayor Pro Tem Richard Montgomery November 2024

City Councilmembers Joseph Franklin November 2024
Suzanne Hadley November 2022
Hildy Stern November 2022

City Treasurer Tim Lilligren November 2024


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CITY ATTORNEY
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Government Finance Officers Association
Certificate of
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in Financial
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City of Manhattan Beach
California
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Financial Report
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June 30, 2021
Executive Director/CEO
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2022

Note 11: City Retireme nt Plans (Continued)

Benefits Provided

The plan pays a retiring employee the difference between the pe nsion payable from PERS and what the PERS pension would be if it were based on the single highest year only. “The payment shall be made to the member only while the member is alive and will cease upon death.” Upon retirement, the right to their payment shall be regarded as a vested pension benefit to the same extent as the individual’s PERS retirement. Benefits vest after five years of service. Retirees must qualify for PERS retirement to qualify for the Single Highest Year Plan. The ben efit is payable for the life of the employee and is subject to a 2% annual cost of living increase.

Employees Covered

Employees covered include sworn law enforcement officers, fire, management or confidential and miscellaneous employees who retired prior to M ay 1993. Therefore, the plan is dormant. The number of participants covered under the plan as of June 30, 2022, was as follows:

Retirees receiving benefits
Miscellaneous 1
Safety 3
Total 4

Total Pension Liability

The total pension liability of $118,015 for the plan is measure d as of June 30, 2022 using an annual actuarial valuation dated June 30, 2022. The Ci ty is funding the plan on a pay as you go basis.

Actuarial Assumptions

A summary of principal assumptions and methods used to determine the pension liability is shown below.

Valuation Date June 30, 2022
Measurement date June 30, 20212
Actuarial cost method: Entry age
Pre-retirement mortality rates 2017 CalPERS Retiree Mortality f or Miscellaneous Employees
Asset valuation method Fair Market Value
Inflation Rate 2.50% per year
Discount rate 3.54 % based on the Bond Buyer 20 Bond Index

The City incurred the accrued liabilities of active participant s under the City’s PERS plan as of May 1993. The City’s remaining obligation is to fund the benefits for those participants who were then and are currently retired.

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CITY OF MANHATTAN BEACH

PENSION PLAN - SUPPLEMENTAL RETIREMENT PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Total pension liability:

Interest 4,535$ 3,868 $ 4,465 $ (552) $
Benefit payments, including refunds of member contributions (20, 118) (20,519) (21,728) (21,340) Experience losses/(gains) (6,296) 16,651 9,609 35,649
Changes in assumptions ----
Net change in total pension liability (21,879) - (7,654) 13,757 Total pension liability, beginning of year 133,183 111,304 111,304 103,650 Total pension liability, end of year 111,304 111,304 103,650 117,40 7 Plan fiduciary net position:

Net investment income 4,535 3,868 4,465 (552)
Contribution from employer ----
Benefit payments, including refunds of member contributions (20, 118) (20,519) (21,728) (21,340) Net change in plan fiduciary net position (15,583) (16,651) (17,26 3) (21,892) Total fiduciary net position, beginning of year 118,255 102,672 86 ,021 68,758 Restatement
Total fiduciary net position, end of year 102,672 86,021 68,758 46, 866 Total pension liability, end of fiscal year 2020 8,632$ 25,283 $3 4 , 8 9 2$ 70,541$ Plan fiduciary net position as a percentage of the total pension liability 92.24% 77.28% 66.34% 39.92% The Supplement Retirement Plan is dormant.

Covered payroll N/A N/A N/A N/A
Net pension liability as a percentage of covered payroll N/A N/A N /A N/A In fiscal year 2021-22, the discount rate was changed from 2.16% to 3.54%. (1) GASB Statement No. 67, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2014.

Additional years will be added as they become available in the future. 2014
Changes of Assumptions:
2015 2016 2017
The fiduciary net position has been restated since the assets held were not in a trust fund as defined by GASB Statement No. 68, but were pulled with the City's cash and investments.

See Notes to Required Supplementary Information. 106
4,837$ 4,045 $ 4,057 $ 1,787 $ 1,143 $
(21,690) (22,125) (22,327) (14,382) (12,889)
8,685 18,576 6,826 (34,482) (2,564)
- 2,027 5,916 62 7,476
(8,168) 2,523 (5,528) (47,015) (6,834)
117,407 109,239 111,762 106,234 59,219
109,239 111,762 106,234 59,219 52,385
496 1,024 - - -
- 27,773 22,327 14,382 12,889
(21,690) (22,125) (22,327) (14,382) (12,889)
(21,194) 6,672 - - -
46,866 25,672 32,344 - -
(32,344) - -
25,672 32,344 - - -
83,567$ 79,418$ 106,234 $5 9 , 2 1 9$ 52,385$

23.50% 28.94% 0.00% 0.00% 0.00%

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A
2019 202120202018 2022
See Notes to Required Supplementary Information. 107
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CITY OF MANHATTAN BEACH

PENSION PLAN - SINGLE HIGHEST YEAR PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Total pension liability:

Interest 12,194$9 , 5 8 8 $ 13,610 $ (1,639) $
Benefit payments, including refunds of member contributions (49, 893) (50,872) (51,598) (52,928) Experience losses/(gains) (20,492) 41,284 19,167 94,614 Changes in assumptions -- - -
Net change in total pension liability (58,191) - (18,821) 40,047 Total pension liability, beginning of year 373,634 315,443 315,443 296,622 Total pension liability, end of year 315,443 315,443 296,622 336,66 9 Plan fiduciary net position:

Net investment income 12,194 9,588 13,610 (1,639)
Contribution from employer -- - -
Benefit payments, including refunds of member contributions (49, 893) (50,872) (51,598) (52,928) Net change in plan fiduciary net position (37,699) (41,284) (37,98 8) (54,567) Total fiduciary net position, beginning of year 315,899 278,200 23 6,916 198,928 Restatement
Total fiduciary net position, end of year 278,200 236,916 198,928 1 44,361 Total pension liability, end of fiscal year 2020 37,243$7 8 , 5 2 7$ 97,694 $ 192,308$ Plan fiduciary net position as a percentage of the total pension liability 88.19% 75.11% 67.06% 42.88% The Single Highest Year Plan is dormant.

Covered payroll N/A N/A N/A N/A
Net pension liability as a percentage of covered payroll N/A N/A N /A N/A In fiscal year 2021-22, the discount rate was changed from 2.16% to 3.54%.

The fiduciary net position has been restated since the assets held were notin a trust fund as defined by GASB Statement No. 68, but were pulled with the City's cash and investments.
(1) GASB Statement No. 67, which requires ten years of history for this schedule, was implemented during fiscal year ended June 30, 2014.

Additional years will be added as they become available in the future. 2014
Changes of Assumptions:
2015 2016 2017
See Notes to Required Supplementary Information. 112
13,871$ 10,663 $ 8,785 $ 5,975 $ 2,421 $
(53,805) (50,694) (51,473) (25,050) (20,304)
(12,652) 41,951 17,838 (138,309) 15,842
- 6,053 15,460 207 (5,433)
(52,586) 7,973 (9,390) (157,177) (7,474)
336,669 284,083 292,056 282,666 125,489
284,083 292,056 282,666 125,489 118,015
1,616 4,689 - - -
- 72,227 51,473 25,050 20,304
(53,805) (50,694) (51,473) (25,050) (20,304)
(52,189) 26,222 - - -
144,361 92,172 118,394 - -
(118,394) - -
92,172 118,394 - - -
191,911$1 7 3 , 6 6 2$2 8 2 , 6 6 6$1 2 5 , 4 8 9$ 118,015$

32.45% 40.54% 0.00% 0.00% 0.00%

N/A N/A N/A N/A N/A

N/A N/A N/A N/A N/A
2018 20202019 20222021
See Notes to Required Supplementary Information. 113
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