ANNUAL
FINANCIAL REPORT
COMPREHENSIVE
MANHATTAN BEACH
CALIFORNIA
FISCAL YEAR ENDED
JUNE 30, 2025
CITY OF MANHATTAN BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Prepared by the Finance Department
Libby Bretthauer, Finance Director
CITY OF MANHATTAN BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................................................. i Directory of City Officials ................................................................................................................................... viii Organization Chart .............................................................................................................................................. ix Certificate of Achievement for Excellence in Financial Reporting ....................................................................... x
FINANCIAL SECTION
Independent Auditors’ Report .............................................................................................................................. 1
Management’s Discussion and Analysis .............................................................................................................. 7
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................................ 25
Statement of Activities ................................................................................................................................. 26
Governmental Funds - Fund Financial Statements:
Balance Sheet ............................................................................................................................................. 31
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................................. 32
Statement of Revenues, Expenditures and
Changes in Fund Balances ......................................................................................................................... 33
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ................................................................................................................................. 34
Proprietary Funds Financial Statements:
Statement of Net Position ............................................................................................................................ 35
Statement of Revenues, Expenses and Changes
in Net Position .............................................................................................................................................. 36
Statement of Cash Flows ............................................................................................................................ 37
Fiduciary Funds Financial Statements:
Statement of Fiduciary Net Position ............................................................................................................ 39
Statement of Changes in Fiduciary Net Position ......................................................................................... 40
Notes to Financial Statements ........................................................................................................................... 43
CITY OF MANHATTAN BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – General Fund .. 95
Pension Plan:
Miscellaneous Plan
Schedule of Changes in Net Pension Liability/(Asset) and Related Ratios .......................................... 96
Supplemental Retirement Plan
Schedule of Changes in Net Pension Liability and Related Ratios ...................................................... 98 Schedule of Investment Returns ......................................................................................................... 101
Single Highest Year Plan
Schedule of Changes in Net Pension Liability and Related Ratios .................................................... 102 Schedule of Investment Returns ......................................................................................................... 105
Safety Plan
Schedule of Proportionate Share of Net Pension Liability/(Asset) ..................................................... 106
Schedule of Plan Contributions
Miscellaneous Plan ........................................... .................................................................................. 107 Supplemental Ret irement Plan ........................................................................................................... 107 Single Highest Year Plan ..................................... ............................................................................... 107 Safety Plan .................................................. ........................................................................................ 107 Single Employer OPEB Plan ................................................................................................... ............ 107
Other Post-Employment Benefits
Schedule of Changes in Net OPEB Liability/(Asset) and Related Ratios ........................................... 108
Notes to Required Supplementary Information ................................................................................................ 111
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Combining Balance Sheet - Nonmajor Governmental Funds .......................................................................... 118
Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ........................................................................................ 122
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - Special Revenue Funds:
Street Lighting and Landscape .................................................................................................................. 126 Gas Tax ..................................................................................................................................................... 127 Asset Forfeiture ......................................................................................................................................... 128 Public Safety Grants .................................................................................................................................. 129 Proposition A ............................................................................................................................................. 130 Proposition C ............................................................................................................................................. 131 AB 2766 ..................................................................................................................................................... 132 Measure R ................................................................................................................................................. 133
Measure M ................................................................................................................................................. 134 Measure W ................................................................................................................................................ 135 Grants Fund ............................................................................................................................................... 136
CITY OF MANHATTAN BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual - Capital Projects Funds:
Capital Improvement ................................................................................................................................. 137 Bond Construction ..................................................................................................................................... 138 Underground Assessment District ............................................................................................................. 139
Combining Statement of Net Position - Nonmajor Enterprise Funds............................................................... 142
Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Nonmajor Enterprise Funds ............................................................................................. 143
Combining Statement of Cash Flows - Nonmajor Enterprise Funds ............................................................... 144
Combining Statement of Net Position - Internal Service Funds ....................................................................... 146
Combining Statement of Revenues, Expenses and Changes in Fund Net Position - Internal Service Funds ..................................................................................................... 147
Combining Statement of Cash Flows - Internal Service Funds ....................................................................... 148
STATISTICAL SECTION
Financial Trends
Net Position by Component .......................................................................................................................... 154 Changes in Net Position ...................................... ......................................................................................... 156 Program Revenues by F unction/Program .................................................................................................... 160 Fund Balances, Gov ernmental Funds .......................................................................................................... 162
Revenue Capacity
Change in Fund Balances, Governmental Funds ......................................................................................... 166 Taxes & Assessment Revenues by S ource, Governmental Funds and Assessment .................................. 169 Assessed Value and Estimated Act ual Value of Taxable Property .............................................................. 170 Direct and Overlapping De bt Property Tax Rates ........................................................................................ 172 Principal Property Taxpayers Based on Net Values ..................................................................................... 173 Property Tax Levies and Collections .......................... .................................................................................. 175 Taxable Sales by Category .................................... ....................................................................................... 176 Direct and Overlappi ng Sales Tax Rates...................................................................................................... 178 Principal Sales Tax Remitters ....................................................................................................................... 179
CITY OF MANHATTAN BEACH, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
Page
Number
STATISTICAL SECTION (Continued)
Debt Capacity
Ratios of Outstandi ng Debt by Type ............................................................................................................. 182 Direct and Overlapping Govern mental Activities Debt ................................................................................. 185 Legal Debt Margin Information ..................................................................................................................... 186 Pledged-Revenue Coverage ........................................................................................................................ 188
Demographic and Economic Information
Demographic and Econ omic Statistics ......................................................................................................... 192 Principal Employers .......................................... ............................................................................................ 193 Full-time Authorized City Emp loyees by Function/Program ......................................................................... 195 Schedule of Insurance in Force .............................................................................................. ...................... 196 Operating Indicators by Function/Program ..................... .............................................................................. 198 Capital Asset Statistics by Function/Program ................. .............................................................................. 199 Demographic Stat istical Data ....................................................................................................................... 200
Bond Disclosure Section .................................................................................................................................. 204
INTRODUCTION
CITY OF MANHATTAN BEACH
1400 Highland Avenue, Manhattan Beach, CA 90266
www.manhattanbeach.gov • (310) 802-5550
December 22, 2025
Honorable Mayor, Councilmembers and Manhattan Beach Community Manhattan Beach City Hall
Manhattan Beach, California 90266
We are pleased to present the Annual Comprehensive Financial Re port of the City of Manhattan Beach for the Fiscal Year ended June 30, 2025. This report has been prepared in accordance with generally accepted accounting principles as set forth in the pronouncements of the Government al Accounting Standards Board (GASB). We are also pleased to report that the City has received an unmodified opinion from the independent auditor, meaning that financial statements are presented, in all material respects, i n accordance with the applicable financial reporting framework.
The City’s financial policies require an external independent a udit be performed annually, and that the auditor’s opinions be included in the Annual Comprehensive Fina ncial Report (ACFR). Further, it states that the results be reviewed with the Finance Subcommittee, which met wi th the auditor and discussed the results on December 18, 2025.
Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All material statements and disclosures nece ssary for the reader to obtain a thorough understanding of the City’s financial activities have been included.
City management is responsible for establishing and maintaining fiscal internal controls designed to safeguard the assets of the government from loss, theft or misuse, and to ensure that accounting data is accurately compiled to allow for the preparation of fi nancial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, b ut not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of controls should not exceed the benefits likely to be derived, and the valuation of costs and benefits require estimates and judgments by management.
The City’s financial statements have been audited by LSL, LLP, an accounting firm selected by the City Council, based on a recommendation from the Finance Subcommittee. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the f inancial statements, assessing the accounting principles used and significant estimates made by management, a nd evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion and that the City of Manhattan Beach’s financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with generally accepted accounting principles (GAAP).
The independent auditors’ report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management Discussion and Analysis. This letter of transmittal is designed to complement the Management Discussion and Analysis (MD&A) and should be read in conjunction with it. The MD&A can be found immediately following the report of the independent auditor.
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Profile of the Government
The City of Manhattan Beach is located in the South Bay region of Los Angeles County. The current population1 is 34,051. The City encompasses approximately four square miles.
Incorporated in 1912 under the general laws of the State of California, the City operates under the Council-Manager form of government. The City Council is comprised of five members elected at-large for overlapping four-year terms.
Each member may serve as Mayor for a nine-month period once during his or her four-year term in office. The City Treasurer is also elected to a four-year term and serves as the chairperson for the Finance Subcommittee. City Councilmembers are limited to two consecutive terms. The City c onducts its elections with statewide elections scheduled in November.
The City Council is responsible for, among other things, passin g ordinances, adopting the budget, appointing committees, and appointing the City Manager and City Attorney. The City Councilmembers also serve as the governing body of the Manhattan Beach Capital Improvements Corporation (please see Note 1 in the ACFR for more information).
In addition, the City Council appoints the members of the following advisory Boards and Commissions:
Planning Commission Parking and Public Improvements Commission Parks & Recreation Commission Board of Building Appeals Library Commission Business Improvement District Advisory Boa rds Cultural Arts Commission
The City is a full-service municipality, and provides a variety of services to the community, including:
P o l i c e s e r v i c e s F i r e a n d p a r a m e d i c s e r v i c e s Culture and recreation B u i l d i n g a n d s a f e t y G e n e r a l g o v e r n m e n t W a t e r and wastewater utilities Stormwater management Parking facilities
Street and landscape maintenance
Budget Process
The City operates on an annual budget schedule. The budget development process begins in January of each year.
Line-item budget development is accomplished through the City’s financial system, which allows each department to build its budget using computerized worksheets. Each department is responsible for developing the Materials & Services line items and part-time employee salaries. The remaining Salary & Benefit information is calculated and entered by the Finance Department.
The Finance Director, in coordination with the applicable opera ting departments, provides the City Manager with proposed revenue projections. These revenue estimates are reviewed with the department budget requests to determine available funding levels for the fiscal year. Supplem ental budget requests (new personnel, services or equipment) are subject to City Manager review and approval before becoming part of the proposed operating budget. This process applies to all governmental and enterprise funds.
The City Manager and Finance Director meet with the departments to review all operating expenditures and budget change requests. After this final review and approval by the City Manager, the proposed budget document is presented to the City Council in May. Budget study sessions and a public hearing are then held by the City Council.
The budget is adopted by resolution prior to June 30.
During the fiscal year, the budget can be amended as necessary to meet the City’s needs. The City Council has the legal authority to amend the budget at any time. Department Heads and their designated representatives may only authorize expenditures based on appropriations approved by City Council action, and only from accounts under their organizational responsibility. Actual expenditures may exceed budget appropriations by line-item. However,
1 State of California, Department of Finance, E-1 Population Estimates for Cities. Sacramento, California, May 2025. ii
total expenditures within each fund may not exceed the total appropriation for that fund. The City Manager has the authority and discretion to approv e interdepartmental appropriation transfers as long as they are within the same fund. Inter-fund transfers require a budget amendment by the City Council.
Financial Policies
In fiscal year 1997-1998, the City Council approved the City’s first set of financial policies, designed to promote sound financial management and ensure that the City’s fiscal integrity remains intact as staff and Councilmembers change. The Policies are reviewed and re-adopted every year with the City’s Operating Budget in June.
While presenting General Fund bal ance in accordance with GASB pronouncements, the City Council has established certain policy “rese rves” within what GASB defines as the unassigned category. The unassigned category is the residual classification of fund balance that is not in restricted or committ ed classifications. In the General Fund section of this transmittal letter, General Fund u nassigned balance is broken down in accordance with City Council Financial Policy.
Long Term Planning
Each year during the budget process, the City develops a five-y ear forecast of revenues and expenditures for all funds. The Street Lighting and Landscape Fund is still operatin g at a deficit and will continue to require General Fund subsidies, which may only be mitigated by a Proposition 218 vote. The most recent five-year forecast can be found in the fiscal year 2025-2026 Adopted Budget, available online at www.manhattanbeach.gov/budget.
Major Initiatives
Project Pulse
In summer 2024, the City closed and subsequently demolished the Lot 3 parking structure in Downtown Manhattan Beach due to safety concerns. The emergency demolition was comp leted by November 2024, and a new interim surface lot opened in June of 2025, restoring parking capacity and improving accessibility.
The interim facility includes solar lighting, EV charging stations, drought-tolerant landscaping with irrigation, and a trash enclosure supporting private refuse agreements. The design also provides ADA-compliant access, enhanced circulation, and bicycle parking, improving safety, efficiency, and overall user experience.
Separately, the City purchased the former bank site at 400 Manhattan Beach Boulevard, increasing the City’s assets in the downtown area.
In spring 2025, the City initiated a planning effort, dubbed Project Pulse, to coordinate synergistic redevelopment of both downtown properties. As part of the Project Pulse work effort, the City is conducting a comprehensive community engagement and visioning process which will run throu gh July 2026 to gather public input on the redevelopment plans for the properties. Ultimately, the City Council will decide on the future use of both properties, which is anticipated to occur in August 2026.
Upon receipt of direction from the City Council in summer 2026, City staff will engage a consultant to prepare preliminary plans for selected projects and process the necessa ry entitlements, which will vary depending on the projects proposed. Once entitlements are obtained, construction drawings will be prepared for the projects and development of the sites will occur upon allocation of funding.
Additional information on Project Pulse can be found at www.manhattanbeach.gov/projectpulse.
Housing Element Implementation
In September 2022, the City Council adopted the City’s 6th Cycle Housing Element. Upon making additional revisions, the final version was certified by the California De partment of Housing and Community Development (HCD) in July 2023, affirming compliance with State housing law . Since then, the City has been working on implementing a series of programs to further the goals in the d ocument and maintain its certified status. At this stage, a series of amendments to the Manhattan Beach Municipal Code (MBMC) and the Manhattan Beach Local iii
Coastal Program (MBLCP) have been approved by the City Council to address mixed-use and multi-family residential development standards, density bonus provisions, permit processes for housing development projects, and related topics. The amendments to the MBMC are in effect at this time, however the amendments to the MBLCP are still under review with the California Coastal Commission. Additional amendments to the MBMC and MBLCP are being prepared to address other programs contained in the 6th Cycle Housing Element.
Another aspect of the implementat ion work was the creation of a Residential Overlay District (ROD) to allow development of high-density residential projects on select comm ercial properties in the C ity. Over the past two years, staff has engaged with a number of interested developers to discuss potential ROD projects on eligible sites, and building plans are under review for projects totaling over 300 units. Ultimately, implementation of the Housing Element will help achieve its goal of facilitating housing production to meet the City’s housing needs during the 6th Cycle planning period of 2021 – 2029.
Long-Term Outdoor Dining Program
During the COVID-19 pandemic, the City allowed temporary outdoor uses for a variety of businesses due to restrictions on indoor operations. As the focus gradually shifted from temporary uses to post-pandemic operations, the City Council directed staff to form a 15-member ad hoc task force to develop a long-term outdoor dining program.
In April 2023, the Outdoor Dining Task Force was established, c omprised of community members representing residential, commercial, and quasi-judicial stakeholders. Since September 2023, staff has provided five periodic status updates before the City Council summarizing the progress of the program development and task force recommendations that include, but are not limited to, the program vision, scope, and regulations.
Staff also engaged an outdoor dining consultant team in June 2023 to supplement the necessary resources that are currently not available in-house. Specifically, consultants provided services in subject areas such as engineering and design, community outreach, environmental documentation, fi scal impact analysis, and other related topics.
The consultant’s work was completed in summer 2025, and the Cit y Council adopted the code amendments and outdoor dining guidelines in early December 2025. Currently, staff is working on submitting the code amendments to the California Coastal Commission for their review and certification into the City’s Local Coastal Program.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhap s best understood when it is considered from the broader perspective of the specific environment within which the City operates.
Local Economy
The South Bay region is home to a number of industries includin g aerospace, entertainment, technology, leisure and tourism, and manufacturing. Economists report that the South Bay area has strong fundamentals including high levels of education, high incomes and competitive industri es. The most recently available figures indicate that the unemployment rate in Manhattan Beach has risen to 5.5%, in line with the trend compared to Los Angel es County at 6.3% and the State of California at 5.5%
2. The City’s largest General Fund revenue source, Property Tax, grew by 4.4% ($1.9 million) in FY 2024-2025. Assessed valuations, which indicate tax revenue and help propel property tax growth, are projected to increase by 5.29% in FY 2025-2026, driven by the value added from reassessments from the sales of large parcels.
The median home price in Manhattan Beach increased 11.1% to $3.3 million compared to the previous year. Single-family homes valued at pre-1978 levels (before Proposition 13) continue to turn over, resulting in higher assessed valuations being added to the property tax rolls.
2 State of California, Employment Development Department, August 2025 (Preliminary) iv
The City’s Sales Tax, Transient Occupancy Tax and Business License Taxes all performed well in FY 2024-2025.
However, these critical revenue sources are vulnerable to broader economic conditions. Inflation and tariffs continue to pressure consumer spending. Although there is optimism for f uture interest rate reductions, national tariffs and higher prices for basic necessities diminish overall spending power. The economy in 2025 continues to be sluggish with only modest expansion expected due to unprecedented uncertainty in these larger economic trends.
Staff continues to monitor the effects of tariffs on the price of materials and services needed for City operations and capital purchases. With these ongoing inflationary pressures, cost containment and efficiency improvements are a top priority.
EXECUTIVE FINANCIAL OVERVIEW
This top-level overview is presented as a supplement to the more detailed and comprehensive analysis presented in the MD&A. As such, it serves to highlight key financial performance indicators for our major funds. We encourage readers to review the MD&A for a further analysis of the City’s financial condition.
General Fund
The General Fund is the primary operating fund of the City of M anhattan Beach. The General Fund balance decreased by $9.9 million from the prior year. The decrease is primarily attributable to outgoing transfers of $15.9 million for the purchase of property located at 400 Manha ttan Beach Boulevard (400 MBB), funding capital projects, and $258,535 of subsidies to the Street Lighting and Landscape Fund, which continues to run a deficit year over year.
The Pension Trust Fund and the PARS Investment Trust Fund are included in the General Fund balance. At the end of fiscal year 2025, the total General Fund balance equaled $30.5 million, of which $6.8 million is either non- spendable or restricted and $24,925 is assigned to City retirement plans, leaving an unassigned fund balance of $23.6 million. Within the unassigned fund balance, City Council has established earmarks for financial policies (20% of operating expenditures) and economic uncertainties ($4 million) of $24.0 million. Due to the purchase of 400 MBB, the General Fund is temporarily not meeting financial policy for FY 2024-2025. However, in the subsequent fiscal year, the City reimbursed the General Fund for the land acquisition with bond proceeds from the issuance of certificates of participation totaling $12.5 million.
Nearly all General Fund revenue categories increased from the p rior year except for int erfund charges. Changes from the prior year for each category are noted in the table below:
With the City’s relatively high property values, Property Taxes continue to be the main revenue source totaling
41.9% of all General Fund revenues.
Increase/
Revenue Category 2025 Actual 2024 Actual (Decrease) %
Property Tax $44,973,260 $43,067,610 $1,905,650 4.4%
Other Taxes (Sales, Hotel, Business License, etc.) 30,366,372 27,890,305 $2,476,067 8.9% Licenses and Permits (Building, Construction, Film Permits) 4,421,097 4,340,758 $80,339 1.9% Fines (Parking Citations, Vehicle Code Fines) 2,480,865 1,953,584 $527,281 27.0% Use of Money and Property (Interest, Rents and Ground Leases) 7,459,748 7,146,781 $312,967 4.4% Received From Other Agencies (Vehicle License Fees, Grants) 747,194 742,757 $4,437 0.6% Service Charges (Plan Check Fees, P&R Class, Ambulance Fees) 12,006,519 9,693,124 $2,313,395 23.9% Interfund Charges (Admin and Enginering Service Charge) 3,540,490 3,731,200 ($190,710) (5.1%) Miscellaneous* 1,282,371 1,202,262 $80,109 6.7%
Total $107,277,916 $99,768,381 $7,509,535 7.5%
*Includes proceeds from the Sale of Capital Assets.
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In the Other Taxes category, Sales Tax, totaling $13.0 million in FY 2024-2025 was nearly $2 million over the prior year due to the passage Measure MMB, which added a one-half cent (0.5%) transaction and use tax as of April 2025. Transient Occupancy (Hotel) Taxes, which totaled $9.0 mil lion, increased by $314,719 (3.6%) compared to the prior year driven by an increase in the number of short-ter m rentals operating within the City’s coastal zone.
Business License Tax, which is based on gross receipts, increas ed $166,836 (3.1%) over the prior year to $5.6 million. Additionally, Real Estate Transfer Tax increased $233,765 (32.6%) over the prior year to $950,553.
In the Fines category, the most s ignificant driver of the incre ase was due to Parking Citations, which increased $580,357 over the prior year. Additionally, the increase in ser vice charges is primarily due to reimbursements for wildfire staffing ($1.1 million over prior year) and building plan check fees ($460,977 over prior year).
On an overall basis, General Fund revenues totaled $107.3 milli on, up by $7.5 million or 7.5% from the prior year and outperformed the final budget by $5.5 million (excluding transfers in).
General Fund expenditures totaled $102.8 million in FY 2024-2025, a decrease of $604,439 compared to the prior fiscal year and $356,714 under the final budget.
Other Funds
Underground Assessment District
Three Utility Undergrounding Assessment Districts (19-4, 19-12, 19-14) were approved by property owners in FY 2019-2020. Construction of all other previously approved underground districts was completely managed by the utility companies for lump sum p ricing. For these three districts, the City’s Public Works Department is directly overseeing construction and, as a result, the bond proceeds (re venues) and expenditures are flowing through a City governmental fund. Property owners were given an opportunity to prepay their assessment in cash or to pay in annual installments following the issuance of bonds. Constru ction commenced in 2020 following the cash collection period and subsequent sale of bonds for remaining as sessments. Construction on District 19-4 was completed in June 2024, and Districts 19-12 and 19-14 are estimated to be completed mid-2027.
Capital Improvement Fund
The Capital Improvement Projects (CIP) Fund is important to hig hlight given its significance in managing general governmental infrastructure and facilities capital projects. In FY 2024-2025, CIP Fund total revenues were nearly $2.0 million, net transfers-in were $15.4 million, and expenditures were $16.4 million.
As of June 30, 2025, the total balance of the CIP Fund is $13.7 million. A list of major capital projects at year end include:
• $2,168,481 – Senior & Scout House
• $1,075,525 – City Facility Renovations
• $1,016,002 – Citywide Security Cameras
• $852,357 – Begg Pool Facility Upgrades
• $665,327 – Deferred Park Maintenance
• $3,245,872 – Other projects in d esign or construction including various facility projects and park projects.
Enterprise, Internal Service, and Special Revenue Funds
This group includes the City’s enterprises such as Water, Waste water, Storm Drain and Parking funds; internal service funds such as Fleet, Insurance, Building Maintenance an d Information Technology; and Special Revenue funds including Gas Tax, Proposition A & C, Measure R, Measure M, Measure W, Asset Forfeiture, Grant Fund, etc. Among this group, several funds deserve attention.
In FY 2024-2025, net income from Water Fund operations totaled $1.9 million, which increased compared to $1.6 million in the prior year. Operating revenue from sales and service charges increased by $2.3 million (14.8%) due to higher consumption and a rate increase, while operating expenses (labor, materials, services, etc.) increased by $2.0 million (14.2%). The Water Fund is currently not meeting the financial reserve policy due to revenues falling behind proj
ections in previous years after heavy rainfall and conservation efforts led to lower consumption. A new Water/Wastewater Rate Study is planned for 2026 to rebuild reserves for future capital needs. vi
In FY 2024-2025, the net operating in come for the Wastewater Fund was $1,287,125, an increase of $453,827 (54.5%) compared to the prior year. Operating revenue increased $686,367 (19.0%) due to new wastewater rates. Since the Wast ewater revenues are based on wa ter consumption, higher water consumption translates into higher revenue for the wastewater fund.
The Parking Fund had a net operating loss for FY 2024-2025 of $451,592, a decrease of $2.1 million from the prior year. Operating revenue remains relatively flat compared to the prior year at $4.5 million. Total operating expenses were $4.8 million, an increase of $2.1 million (79.5%) from the prior year due to the demolition of Parking Lot 3 and construction of an interim parking lot. Future capital improvem ent projects, such as the reconstruction of dated parking structures, as well as debt service on bond principal will require an increase in cash flow. Parking meter rates were increased in May 2025 and a Citywide Parking Management Study is underway to develop long-term strategies to meet current and future parking demands.
Street Lighting and Landscape Fund
The Street Lighting and Landscape Fund continues to run deficits each year. For FY 2024-2025, expenditure exceeded revenues by $269,519. District assessments have not ch anged for over 20 years. Because there is no fund balance to draw upon, the General Fund contributes the entire deficit amount needed for continued operations.
These contributions will be necess ary until a Proposition 218 a ssessment vote is successful in raising the assessment rates and revenues.
Insurance Reserve Fund
For FY 2024-2025, the net position for the Insurance Fund decre ased $1.7 million. Unpredictable nature of claims payments, compounded by rising medical costs and claim judgment s, cause internal servi ce fund charge-outs to fall behind funding needs. The City plans to address the equity needs of the Insurance Fund in the upcoming fiscal year.
Custodial Funds
The custodial fund group includes debt service funds held in trust on behalf of Utility Undergrounding Assessment Districts (UUAD). The City refunded the outstanding bonds of fi ve Underground Districts in March 2018 to take advantage of lower interest rates and reduce assessments for property owners. Interest rates for the new refunding bonds were set at a uniform annual rate of 3.00%, compared to the previous rates that ranged from 4.72% to 4.95%.
The 2018 refunding bonds mature in September 2026.
Debt service on the bonds issued for the three UUAD Districts ( 19-4, 19-12, and 19-14) formed in FY 2019-2020 range in interest rates from 2.00% to 3.00%. These bonds mature in September 2040.
OTHER INFORMATION
Manhattan Beach’s history of prudent financial decision-making has earned and maintained a sound financial condition. In fact, Standard & Poor’s reaffirmed the City’s AAA Credit Rating on July 25, 2025. The City continues to operate efficiently and effectively, all while continuing to provide outstanding services for the community.
Acknowledgments: This report was made possible through the efforts and teamwork of the highly dedicated Finance staff. Special thanks to Julie Bondarchuk, Emy-Rose Han na, Amira Khodari, and Marcelo Serrano.
Appreciation is also expressed to the City Council and City Treasurer for their interest and support, which made this presentation possible. Finally, thanks to the City’s auditing firm of LSL, LLP for their professionalism and diligence in preparing this year-end financial report.
____________________________________
Talyn Mirzakhanian, City Manager Libby Bretthauer, Finance Director
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ELECTED OFFICIALS
MAYOR MAYOR PRO TEM
CITY TREASURER
Amy Thomas Howorth
COUNCILMEMBER
Joe Franklin
David Lesser
COUNCILMEMBER
Nina Trieu Tarnay
COUNCILMEMBER
Steve S. Charelian
Tim Lilligren
viii
ix
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Manhattan Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
x
FINANCIAL SECTION
LSLCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Manhattan Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Manhattan Beach, California, (hereafter, the City) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows
thereof, for the year then ended i n accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, 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
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2025, th e City adopted new accounting guidance, GASB Statement No. 101, Compensated Absences. Our opinion is 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 accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including an y currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and Members of the City Council
City of Manhattan Beach, California
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 is sue 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 generally accepted a uditing standards and Government Auditing Standards will always detect a material m isstatement 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 generally accepted au diting standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skept icism 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 th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of inter nal 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
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and required pe nsion and other post-employment benefits schedules as listed on 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 operat ional, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assuran ce on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2 To the Honorable Mayor and Members of the City Council City of Manhattan Beach, California
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 combini ng and individual fund financial statements and schedules (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 financia l statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary 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 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 December 22, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s 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 p erformed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Irvine, California
December 22, 2025
3 4
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
5 6
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Manhattan Beach, we offer our read ers of these financial statements this narrative overview and analysis of the financial activities of the City of Manhattan Beach for the Fiscal Year ended June 30, 2025. We encourage readers to consider this information in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i to vii of this report.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which is comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Reporting on the City as a Whole
Government-wide financial statements: T h e government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred inflows/outflows of resources and liabilities, with the difference between these items reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Manhattan Beach is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent Fiscal Year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs on a full-accrual basis, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only re sult in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide statement of activities has two components:
Governmental Activities
This is a consolidation of all governmental funds and includes the General Fund, Capital Improvements Funds, Special Revenue Funds and Internal Service Funds. These funds a re supported by taxes, intergovernmental revenues, grants, and charges for services. Expenses include materials and labor, depreciation, and amortization of prepaid pension obligations. Governmental fund expenditures for payment of principal on long-term debt and capital assets are excluded. All intra-governmental charges and expenses and transfers within governmental funds are eliminated.
All internal service fund expenses and depreciation on capital assets are fully allocated to each functional program. Expenses are classified among the following programs: general government, public safety, culture and recreation, and public works. Program activities that produce revenues or receive grant support are applied against program expenses to yield the net expenses. Revenues that cannot be attributed to a specific program, such as taxes and interest (e.g. General Revenues), are shown s eparately. The total of General Revenues, less net program expenses, generates the change in net position. Total net position of governmental activities differs from fund balances of governmental funds by long-term assets (capital and prepaid pension), long-term liabilities and the total of internal service fund net position.
Business Type Activities
All enterpr
ise funds (Water, Wastewater, Stormwater and Parking Funds) are included in Business Type activities. These activities have been traditionally presented as enterprise funds and tie directly to the Statement of Revenues, Expenses, and Change in Net position – Proprietary Funds, as shown in the Funds section of this report.
The government-wide financial statements can be found on pages 25 to 27 of this report. 7 Reporting on the City’s Most Significant Funds
Fund financial statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives . The City of Manhattan Beach, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike t he 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 availa ble at the end of the Fiscal Year. In effect, the budgetary governmental fund statements are working capital flow of funds statements.
Because the focus of governmen tal funds is narrower than that o f the government-wide financial statements, it is useful to compare the informati on presented for governmental fu nds 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. Following the governmental funds Balance Sheet, and Statement of Revenues, Expenditures and Changes in Fund Balances , there are respective reconciliations of the fund balance to Statement of Net position , and Net Change in Fund Balances – t o t a l governmental funds to change in net position of governmental activities. As discussed above, the reconciliations include treatment of capital expenditures, depreciation, changes in capital assets, long-term debt, prepaid pension costs, full accrual versus modified accrual and change in net position of internal service funds.
The City of Manhattan Beach maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and Capital Improvement Fund, which are considered to be major funds. Data from the other nonmajor governmental funds are comb ined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in the fund financial statements section of this report.
The City of Manhattan Beach currently operates on an annual budget cycle. The FY 2024-2025 Budget was adopted on June 4, 2024. A budgetary comparison statement has been provided for each governmental fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 31 to 34 of this report.
Proprietary funds: Proprietary funds account for goods and services provided to customers and for cost recovery via service charges. There are two types of proprietary funds: enterprise funds which provide services to outside users (residents and businesses of Manhattan Beach), and intern al service funds, which provide services to City departments. The City uses internal service funds to account for its fleet of vehicles, information technology, shared building and maintenance costs, and City-wide insurance costs. Because these services predominantly benefit the governmental
function, they have been included within governmental activities in the government-wide financial statements and related intra-governmental charges and transfers have been eliminated accordingly, except for charges and transfers to the enterprise funds, which are quasi-internal transactions.
Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. All four internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements. Three of the City’s six enterprise fun ds are considered major funds and presented as such in the fund financial statements. The three non-major funds, Storm Drain, County Parking Lot, and State Pier and Parking Lots, are presented individually in the combining statements.
The combining statements referred to earlier in connection with non-major governmental funds, proprietary and internal service funds are presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules can be found on pages 114 to 146 of this report. 8 Notes to the financial statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 43 to 91 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report also presents the City’s progress in funding its obligation to provide pension benefits to its employ ees and the budget-to-actual financial comparisons for the General Fund. The City has electe d to present this information within the basic financial statement and financial statement sections of the rep ort. Note 11 and Note 12 provides detailed analysis of City retirement plans.
The City as Trustee
All of the City’s fiduciary activities are reported distinctly in a separate Statement of Fiduciary Assets and Liabilities.
These figures are not combined with other financial statements because the City cannot use these assets to finance present or future operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The net position serves as an indicator of a government’s finan cial position. In the case of the City of Manhattan Beach, net position totaled $252,318,646 on June 30, 2025, versus $244,932,754 at June 30, 2024 – an increase of $7,385,892.
City of Manhattan Beach Net Position
Net position of the City’s Governmental activities amounted to $114,762,489, an increase from the prio r year of $2,203,571, including the restat ement to beginning net position to implement GASB Statement No. 101. On the table of Net Position above, $145,294,713 is net investment in capital assets such as land, buildings, machinery, infrastructure, equipment and other improvements; restricted ne t position of $20,608,871 is equal to the total of Section 115 investments, restricted City capital projects and Special Revenue Fund resources that are restricted in use. Governmental activities’ unr estricted net position decreased by $19,129,831 from the prior year to negative $51,141,095 primarily due to an increase in net investment of capital assets of $18,716,069. Significant components of non-current liabilities include 1) net pension liability of $19,463,627; 2) net OPEB li ability of $2,787,253; 3) subscription and leases payable of $9,351,633; 4) bonds payable totaling $90,753,915; 5) accrued workers compensation and liability claims and judgments of $19,193,031; and 6) accrued employee benefits of $6,256,645. 2025 2024 2025 2024 2025 2024
Current Assets 97,073,255$ 107,906,630$ 45,661,695$ 42,988,158$ 142,734,950$ 150,894,788$ Total Capital Assets Net of Depreciation 170,566,783 152,823,086 103,343,525 101,584,307 273,910,308 254,407,393 Other Non-Current Assets 21,726,755 22,922,368 - - 21,726,755 22, 922,368 Total Assets 289,366,793$ 283,652,084$ 149,005,220$ 144,572,465$ 438,372,013$ 428,224,549$ Deferred Charge on Refunding 209,220$ 241,407$ -$ -$ 209,220$ 241,407$ Deferred Pension Related Items 20,263,369 43,155,092 634,897 1,006, 726 20,898,266 44,161,818 Deferred OPEB Related Items 5,148,199 6,583,415 510,471 652,779 5,65 8,670 7,236,194 Deferred Outflows of Resources 25,620,788$ 49,979,914$ 1,145,368$ 1,659,505$ 26,766,156$ 51,639,419$ Current Liabilities $14,236,392 $34,006,674 $4,389,285 $5,462,538 $1 8,625,677 $39,469,212 Non-Current Liabilities 149,275,761 138,792,586 7,697,213 7,833,424 156,972,974 146,626,010 Total Liabilities 163,512,153$ $172,799,260 12,086,498$ $13,295,962 175,598,651$ 186,095,222$ Deferred Leases Inflows 21,290,299$ 22,380,509$ -$ -$ 21,290,299$ 22,380,509$ Deferred Pension Related Items 10,406,089 20,667,060 10,516 43,960 1 0,416,605 20,711,020 Deferred OPEB related items 5,016,551 5,226,251 497,417 518,212 5,51 3,968 5,744,463 Deferred Inflows of Resources 36,712,939$ 48,273,820$ 507,933$ 562,172$ 37,220,872$ 48,835,992$ Net Investment in Capital Assets 145,294,713$ 126,578,644$ 98,549,824$ 95,964,968$ 243,844,537$ 222,543,612$ Restricted 20,608,871 17,991,538 364,628 362,020 20,973,499 18,353,55 8 Unrestricted (51,141,095) (32,011,264) 38,641,705 36,046,848 (12,499 ,390) 4,035,584 Total Net Position 114,762,489$ 112,558,918$ 137,556,157$ 132,373,836$ 252,318,646$ 244,932,754$ Governmental Activities Business Type Activities Total
9 Net position of the City’s Business-type activities totaled $137,556,157. This represents an increase from prior year of $5,182,321, including restat ement of beginning net position to implement GASB Statement No. 101. Net investments in capital assets (l and, buildings, machinery, equi pment, etc.) totals $98,549,822, while $364,628 is restricted for business improvement district use. Significant components of non-current liabilities include: 1) bonds payable totaling $5,631,085; 2) net pension liability of $725,916; 3) net OPEB liability of $276,372; and 4) accrued employee benefits of $295,137. Business-type activities’ unrestricted net position increased by $2,596,164 from the prior year to $38,641,707, primarily driven by an increase of capital project activity.
The following table condenses the Government-wide Statement of Activities and Change in Net Position for the Fiscal Years ending June 30, 2025 and June 30, 2024:
City of Manhattan Beach Changes in Net Position
Changes in Net Position - Governmental Activities
Total revenues increased by $6,819,883, while total expenses decreased by $3,991,555. Property taxes increased by $1,905,263, other taxes, which include sales and transient occupancy tax, increased by $2,417,395. Charges for services increased by $2,490,709. The restatement of negative $1,097,395 was due to the implementation of GASB 101 for compensated absences.
2025 2024 2025 2024 2025 2024
Program Revenues:
Charges for Services 23,972,590$ 21,481,881$ 30,873,943$ 25,920,701$ 54,846,533$ 47,402,582$ Operating Contributions and Grants 1,443,051 2,017,113 - 103,860 1,443,051 2,120,973 Capital Contributions and Grants 2,812,465 3,192,377 - - 2,812,465 3,192,377 General Revenues:
Property Taxes 45,757,094 43,851,831 - - 45,757,094 43,851,831 Other Taxes 34,288,848 31,871,453 - - 34,288,848 31,871,453 Use of Money and Property 8,379,834 7,912,600 2,525,741 2,311,719 10,905,575 10,224,319 Other 1,227,980 734,724 - - 1,227,980 734,724
Total Revenues 117,881,862$ 111,061,979$ 33,399,684$ 28,336,280$ 151,281,546$ 139,398,259$ Expenses:
General Government 21,890,491$ 20,658,755$ -$ -$ 21,890,491$ 20,658,755$ Public Safety 62,301,498 68,071,122 - - 62,301,498 68,071,122 Public Works 16,331,137 16,407,350 - - 16,331,137 16,407,350 Culture & Recreation 11,705,634 11,262,864 - - 11,705,634 11,262,864 Interest on Long-Term Debt 2,695,310 2,515,534 - - 2,695,310 2,51 5,534 Water, Waste, Storm - - 21,075,908 18,265,447 21,075,908 18,265,4 47 Parking - - 6,701,144 5,486,349 6,701,144 5,486,349
Total Expenses 114,924,070$ 118,915,625$ 27,777,052$ 23,751,796$ 142,701,122$ 142,667,421$ Revenues Over Expenses 2,957,792 (7,853,646) 5,622,632 4,584,484 8,580,424 (3,269,162) Special Items - - - - - -
Transfers In (Out) 343,174 (1,304,507) (343,174) 1,304,507 - - Increas e (Decreas e) in Net Pos ition 3,300,966$ (9,158,153)$ 5,279,458$ 5,888,991$ 8,580,424$ (3,269,162)$ Net Position - Beginning 112,558,918$ 121,022,553$ 132,373,836$ 124,291,125$ 244,932,754$ 245,313,678$ Restatement of Net Position (1,097,395) 694,518 (97,137) 2,193,720 (1,194,532) 2,888,238 Net Position - June 30 (Year End) 114,762,489$ 112,558,918$ 137,556,157$ 132,373,836$ 252,318,646$ 244,932,754$ Governmental Activities Bus ines s Type Activities Total 10 Total governmental activities revenue of $117,881,862, excluding transfers-in of $343,174, is distributed as follows:
The City’s three largest revenue sources were property tax (38. 8%), charges for services (20.4%), and sales tax (13.5%). Property taxes remain a stable source of revenue and i ncreased by $1,905,263 (4.4%) compared to the prior year due to an increase in assessed valuations. Charges f or services increased by $2,490,709 (11.6%) from the prior year due primarily due to Fire reimbursements for mut ual aid deployments during California wildfires ($1.1 million over the prior year) and an increase in building plan check fees due to increased construction activity from large developments ($460,977 over the prior year). Lastly, sales tax increased by $1,892,529 (13.5%) compared to the prior year primar ily due to the recent Transact ions and Use Tax (TUT) Measure MMB which is a
0.50% local sales tax rate that took effect on April 1, 2025.
Functional expenses (excluding interest on debt) for the years ending June 30, 2025 and June 30, 2024 were as follows:
The total cost of services decreased from the prior year by $4, 171,331 (3.6%), while the net cost of services decreased by $5,806,759 (6.5%) from the prior year. The decreas e is primarily attributable to recording pension expenses of $8,419,847. Total costs for Public Safety decreased by $5,769,624, General Government increased by $1,231,736, Culture and Recreation increased by $442,770, and Public Works decreased by $76,213. 2025 2024 2025 2024
General Government 21,890,491 20,658,755 (16,132,903) (15,003,418) Public Safety 62,301,498 68,071,122 (55,820,603) (63,072,495) Culture and Recreation 11,705,634 11,262,864 (6,678,648) (6,647,052 ) Public Works 16,331,137 16,407,350 (5,368,500) (4,985,755) Total $112,228,760 $116,400,091 ($84,000,654) ($89,708,720) *Excludes interest on long-term debt.
Total Cost of Services Net Cost of Services
11 The following chart illustrates governmental revenues and expenses by function for the year ended June 30, 2025.
Change in Net Position - Business Type Activities
In Fiscal Year 2024-2025, total revenues for the City’s business-type operating activities amounted to $30,873,943 and interest revenues totaled $2,525,741. Operating expenses totaled $27,659,465 and non-operating expenses totaled $117,587. Total income from operations was $3, 214,478 while net income before transfers was $5,730,763. After net transfers-in totaling negative $343,174, net position increased by $5,622,632 compared to an increase of $5,279,458 in FY 2023-2024. The restatement of net position was due to the implementation of GASB 101 for compensated absences totaling negative $97,137. 12 Operating Revenues by Source - Business Type Activities FY 2025
Operating Income varied across the business-type activities in FY 2024-2025. A year-over-year comparison is presented below. Further analysis of the major funds is discussed later in this report.
13 FUND FINANCIAL STATEMENTS
Governmental Funds
As of the end of the 2025 Fiscal Year, the City’s governmental funds ending fund balances totaled $59,337,991, a decrease of $7,253,372 in comparison with the prior year.
Within the Governmental Funds total, $23,617,324 (39.8%) constitutes unassigned fund balance. The unassigned fund balance exists only in the General Fund. The remainder of the fund balance ($35,720,667) is non-spendable, restricted or committed indicating these funds are not availabl e for new spending because it has already been committed for on-going capital projects, advanced to other fund s for legally restricted use, long term notes receivable, or for legally-required debt service reserves.
Notwithstanding Governmental A ccounting Standards Board (GASB) pronouncements, the City Council has established earmarks within the unassigned category for working capital and budgetary capital planning initiatives.
Of the $23.6 million unassigned governmental fund balance noted above, $24.0 million has been designated by City Council policy. The City is temporarily not meeting policy at the end of FY 2025 due to a significant one-time purchase of property. However, in Fiscal Year 2025-2026, the City issued certificates of participation to reimburse the General Fund balance for the land acquisition, providing sufficient funds to meet policy in subsequent years.
General Fund
The General Fund is the chief operating fund of the City of Man hattan Beach. At the end of FY 2024-2025, unassigned fund balance of the General Fund was $23,617,324 whi le total fund balance was $30,481,726. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance rep resents 2.8 months of total General Fund expenditures, while total fund balance represents 3.6 months of General Fund expenditures.
During the year, General Fund revenues exceeded expenditures by $4,463,630. This is primarily driven by an increase in property tax, sales tax, charges for services, and fines. After factoring in net transfers out of negative $15,709,713, and lease and subscription financing of $1,346,048, there was a net decrease in fund balance of $9,900,035.
Net transfer activity of negative $15,709,713 was due to the following transfers:
• $15,415,471 was transferred to the Capital Improvement Fund fo r the purchase of property at 400 Manhattan Beach Boulevard and to provide funding for capital projects; • $258,535 was transferred to the Street Lighting and Landscape Fund to relieve a deficit fund balance; • $266,114 was transferred to the Fleet Fund for the purchase of vehicles; • $230,407 of excess revenues from the County Parking Lot Fund w as transferred to the General Fund in line with the contract with the County of Los Angeles.
Please see Note 4 for more information.
Capital Improvement Fund
Capital project funds serve to plan and manage the construction and maintenance of non-enterprise projects that are funded through dedicated revenue sources and General Fund transfers. The City adopts an updated five-year capital improvement plan every year in conjunction with the bud get process. The Capital Improvement Fund is a major fund in FY 2024-2025, while the Bond Construction Fund an d Underground Assessment District Fund are non-major funds covered in that City-wide plan.
At the end of Fiscal Year 2024-2025, total fund balance of $13, 684,973 in the Capital Improvement Fund was committed to capital projects.
14 During Fiscal Year 2024-2025, the Capital Improvement Project F und balance increased by $978,543 (7.7%) due to operating transfers in from the General Fund of $15,415,471. Of the $1,961,611 in total revenues to the Capital Improvement Fund, certain dedicated revenues described below totaled $1,700,627 in FY 2024-2025. The following revenues are earmarked for funding general government capital improvement projects in the effort to maintain and enhance City infrastructure:
Hotel Tax: 15% of the Transient Occupancy Tax has been dedicated to fundi ng capital improvements, generating $900,789 in revenue for the year, which is $20,079 (2.2%) less than prior year.
Parking Meter Rates: Fifty cents of the $2.50 per hour on-street parking meter rates is dedicated to capital improvements. This source generated revenue of $688,803, up $91,854 (15.4%) from the prior year.
Parking Citation Rates: Most parking citations include four dollars dedicated to the CI P Fund. For FY 2024-2025, revenue of $111,036 was realized; an increase of $32,752 (41.8%) from the prior year.
Capital Improvement Fund expenditures totaled $16,398,539. Capi tal outlay expenditures totaled $15,042,620, operating expenditures of $184,45 6, and debt service of $1,171, 463. Capital project expenditures exceeding $500,000 consisted of:
• $13,004,145 – Purchase of prope rty located at 400 Manhattan Beach Boulevard • $558,307 – Various street-r elated capital projects
• $1,480,168 – Other projects in design or construction includin g various facility projects and HVAC replacement projects
Other Governmental Funds
The Street Lighting Fund continues to run deficits each year. For FY 2024-2025, expenditures exceeded revenues by $275,358. Since there is no fund balance to draw upon, the G eneral Fund contributes the entire amount to make up for any deficit in the Street Lighting Fund. These contributions will be necessary until a Proposition 218 assessment vote is successful in raising the assessment rates and revenues. In Fiscal Year 2024-2025, $253,515 was transferred in providing an ending fund balance of $0.
Other non-major governmental f unds include all Special Revenue funds used exclusively to account for intergovernmental and assessment proceeds, which are restricted in use by law. The funds within this category include the Gas Tax, Prop C and A Funds, the Measure R, Measure M, and Measure W Funds, the AB2766 Fund, the Asset Forfeiture Fund, Police Safety Grant Fund, Grants Fun d, the Bond Construction Fund, and the Underground Assessment Fund. Monies received in these funds are primarily used for the maintenance of streets, parks, local transportation programs, the purchase of safety an d fuel-efficient equipment, and bond funded construction.
Underground Assessment District Fund
In Fiscal Year 2019-20, residents in three districts (19-4, 19-12, and 19-14) approved the undergrounding of utilities by a Proposition 218 ballot. As a result, the Manhattan Beach City Council authorized the issuance of bonds to finance Utility Underground Projects in these three assessment districts. Bond assess ments are paid by homeowners over a period of 20 years through the annual consolidated property tax bill.
Bond proceeds and payoffs totaling $18,573,325 were received in FY 2019-20 to fund the projects and will be drawn down upon as the projects progress. In FY 2024-2025, revenues o f $138,708 were reported and expenditures totaled $262,705, resulting in an ending fund balance of $1,320,696.
Proprietary Funds
The City’s
proprietary funds consist of enterprise funds and internal service funds. The enterprise funds include Water, Wastewater and Parking Funds (major funds), as well as S torm Drain and both the County Lots and State Pier & Parking Lot Funds (which are considered non-major). Inte rnal service funds include Insurance Reserve, Information Technology, Fleet Management and Building Maintenance and Operations. 15 Enterprise (Business) Funds
Overall, the combined net income of enterprise funds was $5,622 ,632 before transfers. Operations resulted in a $3,214,478 increase in net position. Transfer activity included a net transfer-out of $343,174 which included a transfer out of $230,407 from the Parking and County Parking Lots Fund to the General Fund, and a transfer of $112,767 from various enterprise funds to the Fleet Fund for the purchase of vehicles.
Several enterprise funds are worth noting:
The Water Fund has been utilizing its reserves for planned capi tal improvements needed to sustain the utility’s operation and infrastructure. Net income from operations totaled $1,883,848, an increase from the prior year which had net operating income of $1,573,450. Revenue from sales increased by 14.8% due to higher consumption and a rate increase. Operating expenses (labor, materials, services , etc.) increased by 14.2% due to an increase in costs in all operating categories.
The Wastewater Fund net operating income for FY 2024-2025 was $1,287,125 versus $833,298 in FY 2023-2024, an increase of $453,827, or 54.5%. Operating revenues increased $686,367 (19.0%) compared to the prior year while operating expenses increased $232,540 or 8.3%. It is important to note that Wastewater revenues are based on water consumption, and increases or decreases in consumption due to excessive rainfall and water conservation efforts also impact Wastewater revenues.
Although Water and Wastewater Fund operating revenues increased in FY 2024-2025, these two funds are currently not meeting reserve policy due to prior year revenues falling behind projections after heavy rainfall and conservation efforts that led to lower consumption. As a result, a new Water/Wastewater Rate Study is planned for 2026 to rebuild reserves for future capital needs.
The Parking Fund net operating loss for FY 2024-2025 was $451,592, down $2,137,182 or negative 126.8% from the prior year. Operating revenue increased $107,489, up 2.5% c ompared to the prior year primarily due to the hourly parking meter rate increase from $2.00 to $2.50 (25% inc rease), which took effect in May 2025. Total operating expenses of $4,933,433 were up $2,136,540 or 79.5% from the prior year primarily due to the demolition of Parking Lot 3 and construction of an interim parking lot. To tal net position for FY 2024-2025 was $17,834,580 while unrestricted net position is $4,625,379. Future capital improvement projects for aging infrastructure as well as debt service on bond principal will require an increase in cash flow. Additionally, a Citywide Parking Management Study is underway to develop long-term strategies to meet current and future parking needs.
Internal Service Funds
Total net position of the Inter nal Service Funds was $6,989,951 , a decrease of $461,711 form the prior year, including restatement of beginning net position. Unrestricted net position of the internal service funds at the end of the year was negative $1,907,359, a decrease of $3,427,852 from the prior year which can be primarily attributable to expenditures exceeding revenues and an increase in liabilities.
The Insurance Fund net position at year-end was negative $2,244,506, compared to negative $468,825 in the prior year primarily due to expenditures exceeding revenues by $1,697 ,124. Claims expense increased by $1,809,021 to $10,305,085. For comparison, prior year workers compensation and liability claims expense are below:
FY 2024-2025 $10.31 million
FY 2023-2024 8.50 million
FY 2022-2023 9.10 million
FY 2021-2022 9.60 million
FY 2020-2021 5.74 million
FY 2019-2020 5.65 million
FY 2018-2019 5.10 million
FY 2017-2018 8.08 million
FY 2016-2017 6.35 million
FY 2015-2016 6.66 million
16 The unpredictable nature of workers compensation and liability claims activity causes these fluctuations in claims expense from year to year. The City continually looks for ways to proactively manage risk and reduce these costs.
Net position in the Fleet Fund increased by $1,607,559, to $10,215,910. Capital additions totaled $2,628,554 in FY 2024-2025. Accumulated working capital will be used for the replacement of vehicles such as fire engines, maintenance trucks and police vehicles.
Net position in the Building Maintenance and Operations Fund is negative $533,584 due to the Pension Obligation Bonds (POB) Payable of $557,433, Net Pension Liability of $162,563 and Net OPEB liability of $3,487. The negative net position will be relieved by increased charges to user departments, which will be used to pay down liabilities.
The Information Technology Fund has a net position of negative $447,869. The operating expenditure is offset by departmental charge-outs borne primarily by the General Fund.
General Fund Budgetary Highlights
Estimated and Actual Revenues
General Fund revenues were estimated at $101,734,847, an increa se of $2,435,504 from the adopted budget.
Subsequent budget adjustments were due to the following amendments:
• $75,000 Office of Traffic Safety Grant
• $80,000 Homeland Security Grant
• $1,978,651 FY 2024-2025 Mid-Year Revenue Budget Adjustments including:
o $1,200,000 for Measure MMB Loc al Transactions and Use Tax o $475,000 for Fire Mutual Aid Reimbursement
o $303,651 for Business License Tax
Actual General Fund Revenues of $107,277,916 (excluding transfers) exceeded the final budget of $101,734,847 by $5,543,069, primarily due to taxes, charges for services, an d use of money and property categories exceeding budget.
Revenues other than property tax that are driven by the economy are sales tax (including transaction and use tax), transient occupancy tax (TOT), and business license tax. Sales tax exceeded the original budget by $1,688,500 and business License exceeded original budget by $389,153. Transient occupancy tax was in line with the original budget.
Appropriations and Expenditures
The General Fund adopted budget included $99,700,482 in appropr iations. The final amended General Fund appropriations budget increas ed overall to $103,044,613 due to several budget adjustments including the carry forward of prior year encumbrances and budget adjustments approved by City Council as follows:
• $75,000 Office of Traffic Safety Grant
• $80,000 Homeland Security Grant
• $175,000 CDTFA Agreement
• $1,198,568 FY 2024-2025 Mid-Year Expenditure Budget Adjustments including:
o Salary and operational cost adjustments that aligned with year -to-date trends o New mid-year requests related to sales tax ballot measure outreach, advertising/printing for city events/activities, increased warehouse supply costs, legal services, Fire/EMS contract services to meet service level demands, and plan check services to address increase construction activity • $3,123 Pension Fund Year End Appr opriation to comply with Financial Policies. Increased retiree medical costs caused by a higher than anticipated number of employee retirements.
17 Overall, revenues exceeded expenditure (excluding transfers) by $4,463,630. When accounting for the net transfers out of $15,709,713 and the financing of lease and subscriptions of $1,346,048, the net change results in a decrease in fund balance of $9,900,035. The ending fund balance was $30, 481,726 and subsequent bond issuance in FY 2025-26 will provide sufficient liquidity to meet General Fund expenditures in Fiscal Year 2025-26.
Capital Asset and Debt Administration
Capital Assets: Government-wide, the City’s investment in capital assets (net of accumulated depreciation) as of June 30, 2025 is $273,910,308. This is an increase from the pri or year of $19,907,914. This investment in capital assets includes land, buildings, park improvements, roadways, sewer, storm drains, vehicles, computer equipment, furniture and other equipment.
City of Manhattan Beach Capital Assets
(Net of depreciation)
Governmental
Capital assets additions totaled $13,004,145 for land, $3,137,885 for projects in progress and $6,618,334 for capital additions for depreciable assets for a total capital asset addition of $22,760,364. This increase was offset by net depreciation of $5,016,667, resulting in a net increase in assets of $17,743,697.
Business-type
During the fiscal year, Business-type capitalized asset additions totaled $3,103,887 with a decrease of $3,510,466 for projects in progress and an increase of $6,614,353 for depr eciable assets. This increase was offset by net depreciation of $1,344,669, resulting in a net increase in assets of $1,759,218.
Please refer to Note 7 for additional information on the City’s capital assets.
Long-Term Liabilities: Total long-term liabilities Ci tywide (excluding unamortized bo nd premiums) equal $131,481,446, a decrease of $4,424,917 from Fiscal Year 2023-20 24. The decrease was attributable to principal payments ($5,265,000) in FY 2024-2025 decreasing lease liabilit y and a decrease of insurance claim reserves of $524,777. An increase of $1,188,316 was recorded for the implementation of GASB 101 Compensated Absences and an increase of $176,544 for subscription. Governmental liabilities decreased by $3,795,056 while business type liabilities decreased by $629,861. The following table is a condensation of Note 8, Note 9 and Note 15.
2025 2024 2025 2024 2025 2024
Land $46,638,710 $33,634,565 $2,607,434 $2,607,434 $49,246,144 $36,241,999 Buildings 26,021,482 26,873,390 13,397,981 13,486,896 39,419,463 40,360,286 Machinery & Equipment 804,910 917,155 2,522,564 2,750,382 3,327,474 3,667,537 Vehicles 7,273,147 5,857,097 - - 7,273,147 5,857,097
Infrastructure 49,456,739 48,194,953 33,420,514 27,815,284 82,877,253 76,010,237 Intangible Assets 629,755 719,720 77,292 88,335 707,047 808,055 Invested in Joint Venture (RCC) 1,521,820 1,651,391 - - 1,521,820 1,651,391 Right-To-Use Assets 7,912,480 8,463,404 - - 7,912,480 8,463,404 SBITAs 1,055,673 397,229 - 7,770 1,055,673
Work in Progress 29,252,067 26,114,182 51,317,740 54,828,206 80,569,807 80,942,388 Total $170,566,783 $152,823,086 $103,343,525 $101,584,307 $273,910,308 $254,002,394 TotalBusiness-Type ActivitiesGovernmental Activities
18 City of Manhattan Beach Outstanding Liabilities
(Excluding Bond Premium)
Principal obligations for existing long-term bonded debt were r educed in accordance with existing debt service schedules. For the details regarding components of long-term li abilities including debt service schedules, please refer to Note 8.
Ongoing claims in Insurance Claim Reserves are due to liability and workers compensation claims. The decrease of $524,777 is due to the decrease of liability claim reserves of $1,106,723, while worker’s compensation reserves increased by $581,946.
State statutes limit the amount of general obligation debt a governmental entity may issue to 3.75% of its total assessed valuation. The current debt limitation for the City of Manhattan Beach (Fiscal Year 2024-2025) is $935 million.
EFFECT OF PENSION ACTIVITY ON NET POSITION
The City contracts with the California Public Employees Retirem ent System (CalPERS) to provide retirement benefits for all full-time employees and qualified part-time em ployees. To determine the accrued pension liability, CalPERS makes actuarial assumptions and projections regarding t he population of employees such as salary progression, expected date of retirement, mortality, turnover a nd, most importantly, the rate of return on investments. CalPERS also determines the value of its fiduciary net position (cash and investments). If the fiduciary net position is less than the accrued pension liability, the difference is the net pension liability (NPL).
The implementation of GASB 68 in F iscal Year 2014-15 fundamenta lly changed the presentation of financial statements and required public agencies to recognize NPL. Furth er, public agencies rely on CalPERS to provide valuations of these pension-related fiduciary assets and liabilities. Due to the timing of CalPERS reports, the measurement date for the City’s retirement reporting lags by one year. Therefore, measurement date for this year’s ACFR is June 30, 2024.
In May 2021, the City issued $91 million in pension obligations bonds (POBs), which eliminated unfunded liability as of FY 2018-2019 by replacing it with bonded debt. The decisi on to issue POBs was made based on (1) an escalating amortization table that would incrementally increase NPL payments up to $4 million annually in the next 10 years, (2) historically low interest rates, and (3) a CalPER S discount rate of 7.0% at the time of issuance. By issuing the POBs, the City was able to finance 100% of the curr ent NPL at a true interest cost of 2.72%, 4.43% lower than the CalPERS discount rate. Moreover, the POBs allowed the City to budget debt service payments at a level of $5.5 million annually rather than trying to balance th e budget for escalating NPL payments that will eventually rise up to $10 million by 2032. The POBs are expecte d to save the City $43.5 million in NPL payments over the life of the bonds.
2025 2024 2025 2024 2025 2024
Marine Avenue Park Refunding COPs $3,370,000 $3,730,000 - - 3,370,000 3,730,000 Police & Fire Facility Refunding COPs 4,355,000 4,955,000 - - 4,355,000 4,955,000 2021 Fire Station No. 2 COPs 6,935,000 7,075,000 - - 6,935,000 7, 075,000 Leases Payable 8,356,190 8,718,073 - - 8,356,190 8,718,073 Subscription Payable 995,443 443,963 - 13,053 995,443 457,016 Accrued Employee Leave & Benefits 6,256,645 5,193,806 295,137 169,660 6,551,782 5,363,466 2021 Refunding COPs - 4,025,000 4,695,000 4,025,000 4,695,000 Pension Obligation Bonds 76,093,915 79,516,630 1,606,085 1,678,370 77,700,000 81,195,000 Insurance Claim Reserves 19,193,031 19,717,808 - - 19,193,031 19, 717,808 Total Long Term Liabilities $125,555,224 $129,350,280 $5,926,222 $6,556,083 $131,481,446 $135,906,363 Current portion of Long Term (due within one year) 20,509,413 18, 789,763 965,730 785,950 21,475,143 19,575,713 Long Term Liabilities - Non Current $105,045,811 $110,560,517 $4,960,492 $5,770,133 $110,006,303 $116,330 ,650 Governmental Activities Busines s-Type Activities Total 19 The discount rate is the assumed rate of return used when calcu lating pension liabilities. CalPERS put a risk mitigation policy in place to potentially lower the discount rate and derisk the plan for years when the investment returns exceed the discount rate. Due to the high returns generated in FY 2020-2021, the discount rate was lowered from 7.0% to 6.8%. In the years that CalPERS does not generate investment returns equal to or higher than the discount rate, it typically results in additional unfunded liability for the City. By lowering the discount rate, it enables CalPERS to meet their investment goals more easily. Below are the historical returns reported by CalPERS:
F Y 2024-2025 11.6% (preliminary)
FY 2023-2024 9.3%
FY 2022-2023 5.8%
FY 2021-2022 -6.1%
FY 2020-2021 21.3%
FY 2019-2020 4.7%
In FY 2024-2025, the City recorded a net pension liability of $20,189,543, a decrease of $4,098,134 from the prior year due to the FY 2023-2024 investment returns (9.3%) being hi gher than the discount rate (6.8%). The City’s pension expense for CalPERS was $15,626,519 (based on the measurement date of June 30, 2024) and changes in net deferrals decreased $12, 969,137. The City’s contribution (deferred) to CalPERS in FY 2024-2025 was $6.0 million. Contributions in FY 2025-2026 are budgeted at $6.2 million.
Note 11 provides a breakdown by group (Miscellaneous and Public Safety) and other rel evant information.
Managing future pension costs and meeting retirement obligation s remain one of the City’s biggest challenges.
Over 95% of retirement costs are attributable to the City’s Gov ernmental Funds and growing pension costs have the potential to crowd out other funding needs. The City has th erefore developed an Unfunded Pension Liability Policy to provide a guideline on addressing future NPL. Future pension costs and liabilities will be monitored continuously and addressed so that it does not grow substantially.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
On June 3, 2025, the City Council adopted the budget for FY 202 5-2026. The original budget estimates General Fund revenues at $125,419,628 (compared to FY 2024-2025 at $98,993,155) and expenditures of $105,580,229 (compared to FY 2024-2025 at $98,484,891), resulting in an anticipated surplus of $19,839,399 in FY 2025-2026.
This extraordinary surplus is primarily due to anticipated bond proceeds budgeted at $13.2 million. Excluding these one-time funds, the anticipated General Fund surplus is $6,618,399.
Of the City’s major General Fund revenue sources, the single biggest revenue source, property tax, has remained stable and growing as assessed values continue to rise based on higher home sale prices given low inventories and high demand. Property tax is expected to increase in FY 202 5-2026 by 5.2% over the FY 2024-2025 budget.
Sales tax is conservatively projected to increase 0.8% from the FY 2024-2025 budget. Additionally, the new local transaction and use tax (Measure MMB) approved by voters in November 2024 took effect in April 2025. This new revenue source is anticipated to collect about $5.9 million in FY 2025-2026. Growth in Transient Occupancy Taxes (5.0%) is anticipated due to the growing number of short-term rentals and Business License Taxes (12.5%) is expected to result from the annual CPI increase to the business license tax rates along with enhanced compliance, discovery and enforcement activities.
General Fund budgeted expenditures are higher by $7,095,338 compared to the Fiscal Year 2024-2025 budget primarily due to increases in contract services, departmental supplies, and adjustments for inflation. Budgeted salaries and benefits ($63,063,837) increased by $4,377,086 com pared to the FY 2024-2025 budget due to negotiated cost of living increases and necessary position chan ges to meet organizational needs and service requests from the community. Materials and services ($21,496,227) are higher by $612,646 due to cost increases in utilities, legals services and other contract services such as tree management and janitorial services.
The City continues its focus on capital improvem
ents. As of Fiscal Year 2025-2026, expenditures of $202.6 million (including carryover projects) are planned for the next five years for utility, street and facility projects. $103.2 million of that amount is for water, wastewater, and storm drain projects. Approximately $57.7 million has been budgeted for street and roadway needs as well as $41.7 million for gener al facilities (including pa rking facilities). These projects will ensure continued functionality of vital systems, traffic flow and community facilities. 20 REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the financial position of the City of Manhattan Beach for all those with an interest in the government’s financ es. Questions concerning any of the information provided in this report or requests for additional financial in formation should be addressed to the Finance Department, 1400 Highland Avenue, Manhattan Beach, CA 90266. 21 22
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
23 24
CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 78,390,074$ 43,446,491$ 121,836,565$ Receivables:
Accounts 1,606,879 1,282,808 2,889,687
Taxes 5,399,783 - 5,399,783 Accrued interest 664,583 - 664,583 Due from other governments 1,465,663 - 1,465,663 Grants 2,005,446 - 2,005,446 Notes and loans 25,668 - 25,668 Leases 21,726,755 - 21,726,755 Restricted assets:
Cash and investments 4,711,798 - 4,711,798 Cash with fiscal agent 1,264,316 100,628 1,364,944 Due from OPEB trust fund 381,988 - 381,988 Inventories 97,947 757,218 855,165 Prepaid costs 1,059,110 74,550 1,133,660 Capital assets (not being depreciated/amortized) 75,890,777 53,925,174 129,815,951 Capital assets (net of accumulated depreciation/amortization) 94,676,006 49,418,351 144,094,357 Total assets 289,366,793 149,005,220 438,372,013
DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding 209,220 - 209,220 Pension-related 20,263,369 634,897 20,898,266 OPEB-related 5,148,199 510,471 5,658,670 Total deferred outflows of resources 25,620,788 1,145,368 26,766,156
LIABILITIES
Accounts payable 4,812,065 3,641,935 8,454,000 Accrued liabilities 2,366,875 354,002 2,720,877 Accrued payroll 1,141,345 141,900 1,283,245 Accrued interest 203,342 91,945 295,287 Deposits payable 3,705,273 159,503 3,864,776 Unearned revenue 2,007,492 - 2,007,492 Noncurrent liabilities:
Due within one year: bonds, notes, leases, SBITA, claims, and compensated absences 20,509,413 965,730 21,475,143 Due in more than one year:
Net pension liability 19,463,627 725,916 20,189,543 Net OPEB liability 2,787,253 276,372 3,063,625 Bonds, notes, leases, SBITA, claims, and
compensated absences 106,515,468 5,729,195 112,244,663 Total liabilities 163,512,153 12,086,498 175,598,651
DEFERRED INFLOWS OF RESOURCES
Pension-related 10,406,089 10,516 10,416,605 OPEB-related 5,016,551 497,417 5,513,968 Lease-related 21,290,299 - 21,290,299 Total deferred inflows of resources 36,712,939 507,933 37,220,872
NET POSITION
Net investment in capital assets 145,294,713 98,549,824 243,844,537 Restricted:
Public safety 712,311 - 712,311 Parks and recreation 1,357,874 - 1,357,874 Public works 331,061 - 331,061 Capital projects 12,526,173 - 12,526,173 Pension Benefits 4,711,798 - 4,711,798 Debt service 1,059,081 - 1,059,081 Business improvement districts - 364,628 364,628 Unrestricted (51,230,522) 38,641,705 (12,588,817) Total net position 114,762,489$ 137,556,157$ 252,318,646$ June 30, 2025
Primary Government
See Notes to Financial Statements.
25 CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2025
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Functions/Programs:
Primary government:
Governmental activities:
General government 21,890,491$ 5,117,728$ 639,860$ -$ Public safety 62,301,498 6,124,100 356,795 - Culture and recreation 11,705,634 5,001,986 - 25,000 Public works 16,331,137 7,728,776 446,396 2,787,465 Interest on long-term debt 2,695,310 - - - Total governmental activities 114,924,070 23,972,590 1,443,051 2,812,465 Business-type activities:
Water 16,234,081 18,099,187 - - Storm drain 1,815,477 2,012,811 - - Wastewater 3,026,350 4,305,931 - - Parking 5,020,583 4,481,841 - - County Parking Lot 913,471 1,148,148 - - State Pier and Parking Lot 767,090 826,025 - - Total business-type activities 27,777,052 30,873,943 - - Total primary government 142,701,122$ 54,846,533$ 1,443,051$ 2,812,465$ General revenues and transfers:
General revenues:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise taxes
Business licenses taxes
Other taxes
Use of money and property
Other
Transfers
Total general revenues and transfers
Change in net position
Net position-beginning
Net position-ending
Program Revenues
Restatement of net position - change in accounting
principle
See Notes to Financial Statements.
26 Governmental Business-Type
Activities Activities Total
(16,132,903)$ -$ (16,132,903)$
(55,820,603) - (55,820,603)
(6,678,648) - (6,678,648)
(5,368,500) - (5,368,500)
(2,695,310) - (2,695,310)
(86,695,964) - (86,695,964)
- 1,865,106 1,865,106
- 197,334 197,334
- 1,279,581 1,279,581
- (538,742) (538,742)
- 234,677 234,677
- 58,935 58,935
- 3,096,891 3,096,891
(86,695,964) 3,096,891 (83,599,073)
45,757,094 - 45,757,094
15,877,679 - 15,877,679
10,132,620 - 10,132,620
1,183,181 - 1,183,181
5,589,153 - 5,589,153
1,506,215 - 1,506,215
8,379,834 2,525,741 10,905,575
1,227,980 - 1,227,980
343,174 (343,174) -
89,996,930 2,182,567 92,179,497
3,300,966 5,279,458 8,580,424
112,558,918 132,373,836 244,932,754
(1,097,395) (97,137) (1,194,532)
114,762,489$ 137,556,157$ 252,318,646$
Primary Government
Net (Expenses) Revenues and
Changes in Net Position
See Notes to Financial Statements.
27 28
FUND FINANCIAL STATEMENTS
29 30
CITY OF MANHATTAN BEACH, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2025
Capital
Projects Fund
Total Total
Nonmajor Governmental
General Funds Funds
ASSETS
Cash and investments 26,286,480$ 13,676,593$ 17,069,640$ 57,032,713$ Receivables (net of allowance for uncollectible):
Accounts 1,563,198 126 9,470 1,572,794 Taxes 5,299,839 99,944 - 5,399,783 Accrued interest 664,583 - - 664,583 Due from other governments 296,856 - 266,380 563,236 Grants 6,023 - 2,901,850 2,907,873 Notes and loans 25,668 - - 25,668 Leases 21,726,755 - - 21,726,755 Due from OPEB Trust Fund 381,988 - - 381,988 Inventories 11,366 - - 11,366 Prepaid costs 1,031,544 - - 1,031,544 Restricted assets:
Cash and investments 4,711,798 - - 4,711,798 Cash and investments with fiscal agents 1,059,081 205,235 - 1,264,316 Total assets 63,065,179$ 13,981,898$ 20,247,340$ 97,294,417$
LIABILITIES
Accounts payable 2,904,667$ 77,038$ 1,600,892$ 4,582,597$ Accrued liabilities 1,678,683 16,628 276,942 1,972,253 Accrued payroll 1,108,435 - 32,910 1,141,345 Deposits payable 3,703,532 - 1,741 3,705,273 Unearned revenues 1,757,682 - 249,810 2,007,492 Interest payable - 203,259 - 203,259 Total liabilities 11,152,999 296,925 2,162,295 13,612,219
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 140,155 - 2,913,753 3,053,908 Lease-related 21,290,299 - - 21,290,299 Total deferred inflows of resources 21,430,454 - 2,913,753 24,344,207
FUND BALANCES (DEFICITS)
Nonspendable 1,068,598 - - 1,068,598 Restricted 5,770,879 - 14,927,419 20,698,298 Committed - 13,684,973 243,873 13,928,846 Assigned 24,925 - - 24,925 Unassigned 23,617,324 - - 23,617,324 Total fund balances (deficits) 30,481,726 13,684,973 15,171,292 59,337,991 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 63,065,179$ 13,981,898$ 20,247,340$ 97,294,417$ Capital
Improvement
See Notes to Financial Statements.
31 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 59,337,991$
161,477,682
Deferred outflows-pension related 19,569,650$
Deferred outflows-OPEB related 4,985,553
Deferred inflows-pension related (10,394,266)
Deferred inflows-OPEB related (4,858,066)
Total deferred outflows and inflows related to postemployment benefits 9,302,871 Long-term receivables 3,053,908
Total other long-term assets 3,053,908
6,989,951
Pension Obligation Bonds (73,106,794)
COPS Payable (14,660,000)
Leases and SBITA payable (9,159,054)
Compensated absences (5,866,922)
Net pension liability (18,647,507)
Net OPEB liability (2,699,199)
Total long-term liabilities (124,139,476)
Deferred amount on refunding 209,220
Bond premiums (1,469,658)
Total premiums, discounts, and deferred items (1,260,438) Net position of governmental activities 114,762,489$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas, these amounts are deferred and amortized in the Statement of Activities.
CITY OF MANHATTAN BEACH, CALIFORNIA
Capital assets, net of accumulated depreciation/amortization, used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the Statement of Net Position.
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
Internal service funds provide services to other funds on a cost-reimbursement basis.
The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the Statement of Activities.
See Notes to Financial Statements.
32 CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
Capital
Projects Fund
Total Total
Nonmajor Governmental
General Funds Funds
REVENUES
Taxes 75,339,632$ 1,083,296$ 3,623,014$ 80,045,942$ Licenses and permits 4,421,097 10,902 - 4,431,999 Intergovernmental 747,194 35,957 3,350,631 4,133,782 Charges for services 15,547,009 688,803 2,313 16,238,125 Use of money and property 7,459,748 1,617 918,469 8,379,834 Fines and forfeitures 2,480,865 111,036 - 2,591,901 Contributions - 30,000 - 30,000 Miscellaneous 1,282,371 - 38,862 1,321,233 Total revenues 107,277,916 1,961,611 7,933,289 117,172,816
EXPENDITURES
Current:
General governement 18,309,285 - 91,364 18,400,649 Public safety 54,368,997 - 356,396 54,725,393 Culture and recreation 9,962,626 - 624,711 10,587,337 Public works 11,921,311 184,456 1,127,370 13,233,137 Capital outlay 294,248 15,042,620 3,889,517 19,226,385 Debt service:
Principal retirement 5,722,147 740,000 18,956 6,481,103 Interest and fiscal charges 2,234,072 425,963 10,989 2,671,024 Trustee fees and bond issuance cost 1,600 5,500 - 7,100 Total expenditures 102,814,286 16,398,539 6,119,303 125,332,128 Excess (deficiency) of revenues
over (under) expenditures 4,463,630 (14,436,928) 1,813,986 (8,159,312)
OTHER FINANCING SOURCES (USES)
Transfers in 230,407 15,415,471 266,885 15,912,763 Transfers out (15,940,120) - (412,751) (16,352,871) Lease and subscriptions financing 1,346,048 - - 1,346,048 Total other financing sources (uses) (14,363,665) 15,415,471 (145,866) 905,940 Net change in fund balances (9,900,035) 978,543 1,668,120 (7,253,372) Fund balances (deficit)-beginning 40,381,761 12,706,430 13,503,172 66,591,363 Fund balances (deficit)-ending 30,481,726$ 13,684,973$ 15,171,292$ 59,337,991$ Capital
Improvement
See Notes to Financial Statements.
33 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2025
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds: (7,253,372)$ Capital outlay 19,591,932$
Losses on disposal of capital assets (98,690)
Depreciation/amortization expense (4,843,824)
Total adjustment 14,649,418
Earned but unavailable grant revenues 709,046
Total adjustment 709,046
Leases issued (382,350)
Subscriptions issued (851,200)
Amortization of bond premiums and discounts 94,155
Amortization of deferred amounts on refunding (32,187)
Principal payments on leases 877,432
Principal payments on subscriptions 294,999
Principal payments on pension obligation bonds 3,288,269 Principal payments on certificates of participation 1,100,000 Total adjustment 4,389,118
(126,984)
Accrued interest on long-term debt -
Compensated absences 89,552
Changes in pension liabilities and related deferred outflows and inflows of resources (8,382,184) Changes in OPEB liabilities and related deferred outflows and inflows of resources (773,628) Total adjustment (9,066,260)
Change in net position of governmental activities 3,300,966$ Internal service funds provide services to other funds on a cost-reimbursement basis.
The net revenue of certain activities of internal service funds is reported with governmental activities.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
CITY OF MANHATTAN BEACH, CALIFORNIA
Governmental funds report capital outlays are expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceeded depreciation/amortization expense in the current period as well as the amount of losses recorded for disposal of capital assets.
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the Statement of Net Position.
Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
See Notes to Financial Statements.
34 CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities
Nonmajor Total
Enterprise Enterprise Internal
Funds Funds Service Funds
ASSETS
Current assets:
Cash and cash equivalents 11,389,662$ 19,509,132$ 5,733,733$ 6,813,964$ 43,446,491$ 21,357,361$ Receivables:
Accounts 914,715 300,090 4,278 63,725 1,282,808 34,085 Inventories 757,218 - - - 757,218 86,581 Prepaids - - 74,550 - 74,550 27,566 Restricted:
Cash with fiscal agent - - 100,628 - 100,628 - Total current assets 13,061,595 19,809,222 5,913,189 6,877,689 45,661,695 21,505,593 Noncurrent:
Advances to other funds - - 450,000 - 450,000 - Capital assets, net 67,600,463 11,783,881 17,380,100 6,579,081 103,343,525 9,089,101 Total noncurrent assets 67,600,463 11,783,881 17,830,100 6,579,081 103,793,525 9,089,101 Total assets 80,662,058 31,593,103 23,743,289 13,456,770 149,455,220 30,594,694
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 354,568 181,875 51,060 47,394 634,897 693,719 OPEB-related 214,978 88,567 22,545 184,381 510,471 162,646 Total deferred outflows of resources 569,546 270,442 73,605 231,775 1,145,368 856,365
LIABILITIES
Current liabilities:
Accounts payable 1,279,606 338,449 1,027,435 996,445 3,641,935 488,053 Accrued liabilities 103,426 17,962 75,941 156,673 354,002 136,037 Accrued payroll 77,829 38,907 12,713 12,451 141,900 - Accrued interest - - 91,945 - 91,945 83 Deposits payable 25 - 410 159,068 159,503 - Worker's compensation claims - - - - - 9,360,860 Claims and judgments - - - - - 1,828,171 Compensated absences 116,220 41,013 17,705 12,847 187,785 195,255 Leases - - - - - 33,678 Subscriptions - - - - - 17,959 Bonds 206,578 98,250 465,890 7,227 777,945 135,667 Total current liabilities 1,783,684 534,581 1,692,039 1,344,711 5,355,015 12,195,763 Noncurrent liabilities:
Advances from other funds - - - 450,000 450,000 - Compensated absences 82,116 - 5,716 19,520 107,352 194,468 Worker's compensation claims - - - - - 7,100,500 Claims and judgments - - - - - 903,500 Leases - - - - - 122,494 Subscriptions - - - - - 18,447 Bonds 899,269 371,370 4,199,317 151,887 5,621,843 2,851,454 Net pension liability 410,846 222,073 50,339 42,658 725,916 816,120 Net OPEB liability 116,390 47,951 12,206 99,825 276,372 88,054 Total noncurrent liabilities 1,508,621 641,394 4,267,578 763,890 7,181,483 12,095,037 Total liabilities 3,292,305 1,175,975 5,959,617 2,108,601 12,536,498 24,290,800
DEFERRED INFLOWS OF RESOURCES
Pension-related 5,952 3,217 729 618 10,516 11,823 OPEB-related 209,480 86,303 21,968 179,666 497,417 158,485 Total deferred inflows of resources 215,432 89,520 22,697 180,284 507,933 170,308
NET POSITION
Net investment in capital assets 67,427,421 11,698,749 12,844,573 6,579,081 98,549,824 8,897,310 Restricted for business improvement district - - 364,628 - 364,628 - Unrestricted 10,296,446 18,899,301 4,625,379 4,820,579 38,641,705 (1,907,359) Total net position 77,723,867$ 30,598,050$ 17,834,580$ 11,399,660$ 137,556,157 6,989,951$ Business-Type Activities
Water Wastewater Parking
See Notes to Financial Statements.
35 CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Nonmajor Total
Enterprise Enterprise Internal
Funds Funds Service Funds
OPERATING REVENUES
Charges for services 18,093,314$ 4,305,931$ 4,459,582$ 3,986,398$ 30,845,225$ -$ Interdepartmental charges for services - - - - - 20,574,675 Miscellaneous 5,873 - 22,259 586 28,718 136,155 Total operating revenues 18,099,187 4,305,931 4,481,841 3,986,984 30,873,943 20,710,830
OPERATING EXPENSES
Salaries 1,556,843 671,836 249,655 292,308 2,770,642 2,740,677 Employee benefits 742,487 312,937 90,642 111,119 1,257,185 1,036,141 Contract for professional services 9,399,312 296,768 942,903 831,027 11,470,010 2,597,534 Materials and services 852,585 163,181 2,602,455 1,168,552 4,786,773 3,784,604 Utilities 259,950 88,410 113,472 58,337 520,169 155,369 Administrative service charges 1,475,258 831,497 534,000 276,240 3,116,995 - Internal services 1,297,287 327,274 81,039 17,100 1,722,700 - Leases and rents - - - 631,482 631,482 - Claims - - - - - 10,305,085 Depreciation/amortization 631,617 326,903 319,267 105,722 1,383,509 1,029,071 Total operating expenses 16,215,339 3,018,806 4,933,433 3,491,887 27,659,465 21,648,481 Operating income (loss) 1,883,848 1,287,125 (451,592) 495,097 3,214,478 (937,651)
NONOPERATING REVENUES (EXPENSES)
Interest revenue 693,869 1,148,974 324,945 357,953 2,525,741 - Interest expense (18,742) (7,544) (87,150) (4,151) (117,587) (79,155) Gain (loss) on disposal of capital assets - - - - - 106,540 Total nonoperating revenues (expenses) 675,127 1,141,430 237,795 353,802 2,408,154 27,385 Income (loss) before transfers 2,558,975 2,428,555 (213,797) 848,899 5,622,632 (910,266) Transfers in - - - - - 792,150 Transfers out (38,460) (1,270) (34,457) (268,987) (343,174) (8,868) Change in net position 2,520,515 2,427,285 (248,254) 579,912 5,279,458 (126,984) Net position-beginning 75,214,014 28,218,366 18,101,216 10,840,240 132,373,836 7,451,662 Restatements (10,662) (47,601) (18,382) (20,492) (97,137) (334,727) Net position-beginning, as restated 75,203,352 28,170,765 18,082,834 10,819,748 132,276,699 7,116,935 Net position-ending 77,723,867$ 30,598,050$ 17,834,580$ 11,399,660$ 137,556,157$ 6,989,951$ Business-Type Activities
Water Wastewater Parking
See Notes to Financial Statements.
36 CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Nonmajor
Enterprise Internal
Funds Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 18,102,109$ 4,331,669$ 4,483,498$ 3,982,795$ 30,900,071$ -$ Receipts from interfund charges - - - - - 20,688,363 Payments to suppliers and service providers (14,640,446) (1,550,429) (3,526,549) (3,062,146) (22,779,570) (6,933,478) Payments to employees for salaries and benefits (2,035,446) (852,468) (311,527) (351,832) (3,551,273) (3,302,705) Other receipts (payments) - - - 586 586 (10,829,862) Net cash provided by (used for)
operating activities 1,426,217 1,928,772 645,422 569,403 4,569,814 (377,682)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - - - - 792,150 Transfers to other funds (38,460) (1,270) (34,457) (268,987) (343,174) (8,868) Principal paid on non-capital debt (41,984) (17,305) (5,836) (7,159) (72,284) (134,445) Interest paid on non-capital debt (24,338) (18,047) (3,385) (4,151) (49,921) (79,155) Payments from other funds on interfund borrowings - - 225,000 - 225,000 - Payments to other funds on interfund borrowings - - - (225,000) (225,000) - Net cash provided by (used for)
noncapital financing activities (104,782) (36,622) 181,322 (505,297) (465,379) 569,682
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,305,154) (836,527) - (1,001,046) (3,142,727) (4,123,350) Principal paid on capital debt (154,158) (88,895) (440,000) - (683,053) (47,320) Interest paid on capital debt (37,531) (11,177) (177,319) - (226,027) (2,217) Proceeds from sales of assets - - - - - 106,540 Net cash provided by (used for)
capital and related financing activities (1,496,843) (936,599) (617,319) (1,001,046) (4,051,807) (3,890,550)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 693,869 1,148,974 324,945 357,953 2,525,741 - Net cash provided by (used for)
investing activities 693,869 1,148,974 324,945 357,953 2,525,741 - Net increase (decrease) in
cash and cash equivalents 518,461 2,104,525 534,370 (578,987) 2,578,369 (3,698,550) Cash and cash equivalents-beginning 10,871,201 17,404,607 5,299,991 7,392,951 40,968,750 25,055,911 Cash and cash equivalents-ending 11,389,662$ 19,509,132$ 5,834,361$ 6,813,964$ 43,547,119$ 21,357,361$ Business-Type Activities
Water Wastewater Parking
See Notes to Financial Statements.
37 CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Governmental
Activities
Nonmajor
Enterprise Internal
Funds Totals Service Funds
Business-Type Activities
Water Wastewater Parking
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION
Cash and investments 11,389,662$ 19,509,132$ 5,733,733$ 6,813,964$ 43,446,491$ 21,357,361$ Cash with fiscal agent - - 100,628 - 100,628 - Total cash and cash equivalents 11,389,662$ 19,509,132$ 5,834,361$ 6,813,964$ 43,547,119$ 21,357,361$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) 1,883,848$ 1,287,125$ (451,592)$ 495,097$ 3,214,478$ (937,651)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 631,617 326,903 319,267 105,722 1,383,509 1,029,071 (Increase) decrease in accounts receivable 2,922 25,738 1,657 (56,809) (26,492) (22,467) (Increase) decrease in inventories 5,877 - - - 5,877 18,838 (Increase) decrease in prepaid items - - (74,550) - (74,550) (27,566) Increase (decrease) in accounts payable (1,345,090) 139,131 745,929 (167,625) (627,655) (387,243) Increase (decrease) in accrued liabilities 60,988 56,477 88,654 96,800 302,919 136,037 Increase (decrease) in deposits payable - - - 53,206 53,206 - Increase (decrease) in compensated absences 18,014 (6,588) 5,039 11,875 28,340 54,996 Increase (decrease) in claims and judgments - - - - - (524,777) Increase (decrease) in net pension liability
and related items 134,684 86,243 7,520 2,527 230,974 257,845 Increase (decrease) in net OPEB liability
and related items 33,357 13,743 3,498 28,610 79,208 25,235 Total adjustments (457,631) 641,647 1,097,014 74,306 1,355,336 559,969 Net cash provided by (used for)
operating activities 1,426,217$ 1,928,772$ 645,422$ 569,403$ 4,569,814$ (377,682)$ See Notes to Financial Statements.
38 Custodial
Funds
Special
Assessment
Redemption
ASSETS
Cash and cash equivalents 1,329,874$
Cash and investments with fiscal agents 1,258,743
Receivables:
Accounts 3,064
Total assets 2,591,681
LIABILITIES
Payable to bondholders 2,591,681
Total liabilities 2,591,681
NET POSITION
Restricted for bondholders -
Total net position -$
CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
See Notes to Financial Statements.
39 Custodial
Funds
Special
Assessment
Redemption
ADDITIONS
Special assessments 1,476,653$
Interest income 49,635
Total additions 1,526,288
DEDUCTIONS
Professional services 7,580
Principal payment 1,290,000
Interest expense 228,708
Total deductions 1,526,288
Net increase (decrease) in fiduciary net position -
Net position-beginning -
Net position-ending -$
CITY OF MANHATTAN BEACH, CALIFORNIA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
See Notes to Financial Statements.
40 NOTES TO
FINANCIAL STATEMENTS
41 42
CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of the Reporting Entity
The City of Manhattan Beach, California (the City), was incorpo rated on December 12, 1912, under the laws of the State of California and enj oys all the rights and privilege s applicable to a general law city. It is governed by an elected five-member council. As required by accounting pr inciples generally accepted in the United States of America, these financial statements present the City of Manhattan Beach (the primary government) and its component unit, the Manhattan Beach Capital Improvements Corporation. The component unit is included in the reporting entity because of the significance of its operational or financial relationships with the City of Manhattan Beach. It is governed by the City Council of the City of Manhattan Beach and its activities exclusively ben efit the City, therefore it is presented as a blende d component unit. Separate financial statements are not prepared for the Manhattan Beach Capital Improvements Corporation.
Blended Component Unit
Manhattan Beach Capital Improvements Corporation - The Manhattan Beach Capital Improvements Corporation (the Corporation) is a nonprofit public benefits corporation, o rganized under the laws of t he State of California in September 1996, pursuant to the Nonprofit Public Benefit Corporation Laws (Title I, Division 2, Part 2, Section 5110). The sole purpose of the Corporation is to issue debt for capital improvements. Certificates of participation are debt issued by the Corporation providing the holder an interest, i.e. the right to participate in the lease payments paid by the City t o the Corporation. There are no separately issued financial statements for this entity.
B. Description of Funds
The accounts of the City are organized and operated on the basi s of funds, each of which is defined as an independent fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual e quities or balances and changes therein. These funds are segregated for the purpose of carrying on specific activiti es or attaining certain objectives in accordance with special regulations, restrictions or limitations.
In accordance with the City’s municipal code and budget, severa l different types of funds are used to record the City’s financial transactions. For financial reporting purposes , such funds have been categorized and are presented as follows:
Governmental Fund Types
General Fund - to account for all unrestricted resources except those requir ed to be accounted for in another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources (othe r than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes.
Capital Projects Funds - to account for financial resources segregated for the acquis ition or construction of major capital facilities, other than those financed by Enterprise or Internal Service Funds. In recent years, the Underground Assessment District Fund was added to this category.
Proprietary Fund Types
Enterprise Funds - to account for operations where it is the stated intent that costs of providing services to the general public on a continuing basis be financed or recovered p rimarily through user charges, or where determination of net income is deemed appropriate.
43 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Internal Service Funds - to account for insuran ce reserve, information systems, buildi ng maintenance and operations, and fleet management services provided to the depar tments of the City on a continuing basis, which are financed or recovered primarily by charges to the user depa rtments. Interest is not allocated to internal service funds as those funds are intended to operate on a cost reimbursement basis.
Fiduciary Fund Types
Custodial Funds - to account for special assessment collections for debt servi ce for the underground assessment bonds that the City remits to the fiscal agent.
C. Basis of Accounting/Measurement Funds
Government-Wide Financial Statements
The City government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. Thes e statements present summaries of Governmental Activities and Business-Type Activities for the City. Fiduciary Activities of the City are not included in these statements.
These statements are presented on an “economic resources” measu rement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred inf lows and outflows of resources, and liabilities, including capital assets and infrastructure as well as long-ter m debt are included in the accompanying Statement of Net Position. The Statement of Activities presents changes i n net position. Under the accrual basis of accounting, revenues are recognized in the period in which the benefit is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specifi c function. The types of program revenues for the City are reported in three categories: 1) charges for s ervices,2) operating grants and contributions, and 3) capital grants and contributions. Charges for services inclu de revenues from customers or applicants who purchase, use or directly benefit from goods, services or privi leges provided by a given function. Grants and contributions include revenues re stricted to meeting the operat ional or capital requirements of a particular function. Taxes and other items not properly included among pro gram revenue are reported instead as general revenue.
Government-wide financial statements do not provide information by fund; they simply distinguish between governmental and business-type activities. The City’s Statement of Net Position includes current and noncurrent assets and liabilities, as well as deferred inflows and outflows of resources.
Financial Statement Classification
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in capital assets - This category groups all capital assets into one component of n et position.
Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of capital assets reduce this category.
Restricted Net Position - This category presents restrictions imposed by creditors, grant ors, contributions or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position - This category represents the net position of the City, not restricted for any project or other purpose.
44 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenue, Expenditures and Change in Fund Balances for all major governmental funds and ag gregated nonmajor funds. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the qualifications of GASB Statement No. 34.
All governmental funds are accounted for by using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included in the governmental fund balance sheet. Related operating statements of these funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.
The modified accrual basis of accounting is used by all governmental funds as the basis for recognizing revenues.
Under the modified accrual basis of accounting, revenues are susceptible to accrual and consequently recognized when they become both measurable and available. “Measurable” me ans the amount of the transaction can be readily determined, and “available” means that the transaction amount is collectible within the current period or soon thereafter (generally 60 days after year-end) to be used t o pay liabilities of the current period. Revenues considered susceptible to accr ual include property taxes and sa les taxes collected after year-end, earned and uncollected investment interest income, uncollected rents and l eases and unbilled service receivables. Revenues from such items as license and permit fees, fines and forfeitur es and general service charges are not susceptible to accrual because they are generally not measurable until received in cash.
The government reports unearned revenue on its balance sheet fo r grant monies received before the City has a legal claim to them, such as grant funds received prior to incu rring qualified expenses. In subsequent periods, the unearned revenue is removed once revenue recognition criteria a re met and the City has established legal claim to the resources.
Governmental fund expenditures are recorded when the related fu nd liability is incurred. Principal and interest on long-term debt are recorded as fund liabilities when they are due or when amounts have been accumulated in the debt service fund for payments to be made early in the following year.
Proprietary Funds Financial Statements
Proprietary funds financial statements include a Statement of F und Net Position, a Statement of Revenues, Expenses and Change in Fund Net Position, and a Statement of Ca sh Flows. All proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting.
Under this method, revenues are recorded when earned and expens es are recorded at the time liabilities are incurred. With this measurement f ocus, all assets, deferred out flows/inflows of resources and liabilities (current and long-term) resulting from the operations of these funds are included in the Statement of Net Position.
Accordingly, the proprietary fund Statement of Net Position pre sents assets, deferred inflows/outflows of resources and liabilities classified into their respective current and long-term categories.
The City’s internal service funds are presented in the proprietary funds financial statements. Because the principal users of the internal services are the City’s governmental activities, the financial statements of the internal service funds are consolidated into the governmental activities column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity.
Proprietary funds distinguish operating revenues and expenses f rom non-operating items. Operating revenues and expenses generally result from providing services in connec tion with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s proprietary funds are charges to customers for services.
Operating expenses include the co st of services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. 45 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
There is no look-back adjustment on the statement of fund net p osition and the statement of revenues, expenses and changes in fund net position for the enterprise funds’ part icipation in the internal services funds because these transactions are paid in cash, therefore there is no internal balance related to what can be considered a quasi-external transaction.
Major Funds
Governmental Accounting Standards Board Statement 34 (GASB 34) requires the City to report all major funds in the basic financial statements. I n accordance with GASB 34, the following funds are classified as major governmental funds:
General Fund – used to account for all unrestricted resources except those required to be accounted for in another fund. This fund accounts for general citywide operations.
Capital Improvement Fund – used to account for financial resources segregated for the acquisition or construction of major capital facilities, other than those financed by Enterprise, Internal Service Funds, or other project specific funds.
The following funds are classified as major proprietary funds:
Water Fund - used to account for the operation of the City’s water utilit y system. Revenues are generated from user fees, which are adjusted periodically to meet the costs of administration, operation, maintenance and capital improvements to the system. In fiscal year 1997, the City compl eted a comprehensive utility fee study and issued certificates of participation for the purpose of upgrading the City’s water and wastewater systems.
Wastewater Fund - used to account for the maintenance and improvements of the City’s sewer system. Revenues are derived from a user charge placed on the water bills. In fi scal year 1997, the City completed a comprehensive utility fee study and issued cert ificates of participation for the purpose of upgrading the City’s water and wastewater system.
Parking Fund - used to account for the general operations and maintenance o f City parking lots and spaces.
Revenues are generated from the use of these properties.
D. Property Tax Calculator
Property tax revenue is recogni zed on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available mea ns due or past due and receivable within the current period and collected within the current period or expec ted to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities of the cu rrent period. The County of Los Angeles collects property taxes for the City. Tax liens attach annually as of 12 :01 AM on the first day in January prior to the fiscal year for which the taxes are levied. Taxes are levied on both r eal and personal property, as it exists on that date.
The tax levy covers the fiscal period July 1 to June 30. All se cured personal property taxes and one-half of the taxes on real property are due November 1; the second installme nt is due February 1. All taxes are delinquent, if unpaid, by December 10 and April 10, respectively. Unsecured pe rsonal property taxes become due on March 1 of each year and are delinquent, if unpaid, on August 31. 46 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Cash and Investments
Cash and Cash Equivalents
For purpose of the Statement of Cash Flows, the City considers cash and cash equivalents as short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds except for funds in i ts 125 medical flex plan; its Section 115 Trust, and its outstanding Water and Wastewater; Marine Avenue Sports Fiel d; and Metlox, Police & Fire Facility bonded debt, which are held by outside trustees.
Investments
Investments are shown at fair value, in accordance with GASB St atements No. 31 and No. 72. The City categorizes its fair value measurements within the fair value h ierarchy established by generally accepted accounting principles.
For purposes of the Statement of Cash Flows, the proprietary fu nd types consider all cash and investments to be cash equivalents, as these funds participate in the citywide cash and investment pool.
F. Restricted Cash and Investments
Certain proceeds of debt issues, as well as certain resources s et aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Additionally, the City established the PARS Post-E mployment Benefits Trust as a t ax-exempt trust within the meaning of Section 115 of the IRS Code and relevant statutory provisions o f the State of California for the purpose of pre-funding pension obligation and/or OPEB obligation. The City ’s adoption and operation of the Trust has no effect on any of the current or former employee’s entitlement t o post-employment benefits. The balances and activities of the Trust are irrevocably dedicated to funding fu ture post-employment benefit obligations. The assets will benefit the City through reduced future cash flow demands on the City’s General fund resources and continue to be assets of the City. These amounts are reflected as restricted cash and investments in the General fund.
G. Capital Assets
Capital assets, which include land, machinery and equipment, buildings and improvements, leases, subscriptions, intangibles, and infrastructure (roads, bridges, curbs and gutt ers, streets, walk-street s and sidewalks, parks and recreation improvements), are reported in the government-wide f inancial statements. Capital assets and infrastructure are defined by the City as assets with an initia l, individual cost of more than $5,000 and $100,000 respectively (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation.
47 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital assets are reported net of accumulated depreciation and amortization on the Statement of Net Position.
Depreciation and amortization is provided for on the straight-l ine method over the estimated useful lives of the assets as follows:
Asset Years
Equipment 5-20
Vehicles 3-20
Buildings/Improvements 40-100
Leases 5-100
Subscriptions 10
Intangible Assets 10
Water and Sewer Systems 30-50
Other Infrastructure 15-100
Major outlays for capital assets and improvements are capitalized as projects are constructed.
H. Leases
Leases are defined as the right to use an underlying asset. As lessee, the City recognizes a lease liability and an intangible lease asset at the beginning of a lease unless the lease is considered a short-term lease or transfers ownership of the underlying asset. Right-to-use lease assets ar e measured based on the net present value of the future lease payments at inception, using the weighted average cost of capital, which approximate the incremental borrowing rate. Re measurement of a lease liability occurs when there is a change in the lease term and/or other changes that are likely to have a significant impact on the lease liability. The City calculates the amortization of the discount on the lease liability and reports that amount as outflows of resources. Payments are allocated first to accrued interest liability and then to the l ease liability. Variable lease payments based on the usage of the underlying assets are not included in the lease li ability calculations but are recognized as outflows of resources in the period in which the obligation was incurred. As lessor, the City recognizes a lease receivable.
The lease receivable is measured using the net present value of future lease payments to be received for the lease term and deferred inflow of receivables at the beginning of the lease term. Periodic amortization of the discount on the receivable are reported as interest revenue for that period. Deferred in flows of resources are recognized as inflows on a straight-line basis over the term of the lease. This recognition does not apply to short-term leases, contracts that transfer ownership, leases of assets that are investments, or certain regulated leases. Any initial direct costs are reported as an outflow of resources for that period. Re-measurement of lease receivables occur when there are modifications, including but n ot limited to changes in the contract price, lease term, and adding or removing an underlying asset to the lease a greements. In the case of a partial or full lease termination, the carrying value of the lease receivable and the related deferred inflow of resources will be reduced and will include a gain or loss for the difference. For lease contracts that are short-term, the City recognizes short-term lease payments as inflows of resources (revenues) ba sed on the payment provisions of the lease contract. Liabilities are only recognized if payments are received in advance, and receivables are only recognized if payments are received subsequent to the reporting period.
I. Subscriptions
Subscription-Based Information Technology Arrangements (SBITAs) are contracts that convey control of the right to use another party’s IT software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction. To determine whether a contract conveys control of the right to use the underlying IT assets, the City assesses both the right to obtain the present service capacity from use of the underlying IT assets and the right to determine the nature and manner of use of the underlying IT assets as specified in the contract. Contracts that solely provide IT support services are excluded from the definition of a SBITA. The subscription term is the period during which the City has a noncancellable right to use the underlying IT assets, plus the periods covered by the City’ s option to extend the SBITA if it is reasonably certain, based on all relevant factors, that the government wil l exercise that option. Periods for which both the government and the SBITA vendor have an option to terminate the SBITA without permission from the other party (or if both parties have to agree to extend) are cancellable periods and are excluded from the subscription term. 48 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Financial Position repo rts a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government reports deferr ed outflows of resources for pension contributions made after the actuarial measurement date which will be recognized in the following year, for the net difference between projected and actual earnings on pension and OPEB plan investments, the difference between expected and actual experience, the changes of assumpti ons, adjustments due to the difference in proportions, and the difference in proportionate share. The government also reports deferred outflows for deferred charges on debt refunding. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is defer red and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the Statement of Financial Position and the Governmental Fund Balance Sheet report a separate section for deferred infl ows of resources. This separa te financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time.
The government has several items that qualify for reporting in this category:
1. Unavailable revenue reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from grant revenues. These amounts are deferred and recognized as an inflow of resources in the period when they become available.
2. Pension and OPEB related defer red inflows are reported only on the Statement of Net Position. The government reports deferred inflows of resources related to pensions arising from certain changes in the net pension liability, net pension as set, or net OPEB asset. Deferr ed inflows and outflows of resources related to changes in the net pension liability, net pension asset, and ne t OPEB asset are recognized systematically over time. Amounts are first recognized in the year the change occurs. The remaining amounts are to be recognized in future periods. The recognition period differs depending on the source of the change, and they currently are amortized over 5 years or the average remaining service lifetime.
3. A deferred inflow of resources related to leases is reported for the value of lease receivable payments to be recognized as an inflow of resources in a systematic and ration al manner over the term of the lease agreements.
K. Net Pension Liability
For purposes of measuring the net pension liability, deferred o utflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the repor ted results must pertain to liability and asset information within certain defined timeframes. For the pension plan administered under the California Public Employee’s Retirement System (CalPERS), the following timeframes are used:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period: July 1, 2023 to June 30, 2024
49 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Net Other Post-Employmen t Benefits (OPEB) Liability
For purposes of measuring the net OPEB liability, deferred outf lows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fi duciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the repor ted results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Measurement Period: July 1, 2023 to June 30, 2024
M. Interfund Transfers
As a general rule, interfund transactions have been eliminated from the government-wide financial statements.
Exceptions to this rule are payments in lieu or charges for cur rent service between the Ci ty’s enterprise activity and the City’s governmental funds. Elimination of these transac tions would distort the direct costs and program revenues for the various functions. Certain eliminations have b een made regarding interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and t he business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental, business-type, and fiduciary activities have not been eliminated.
N. Long-Term Obligations
In the government-wide and proprietary funds financial statemen ts, long-term obligations are recorded as liabilities in the applicable governmental activities, business -type activities or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amor tized over the life of the debt using the effective interest method. In the governmental fund financial statements, long-term obligation, bond discounts and premiums are recognized as other financing sources or uses when incurred. Issuance costs are recorded as a current year expenditure.
The City has recorded all judgment and claim liabilities result ing from workers’ comp ensation and liability insurance claims in the Insurance Reserve Fund, which is a comp onent of the Internal Service funds group. The recorded liability is based upon an estimate of reported claims as provided by an analysis of a third-party administrator.
Only the short-term liability is reflected as a current liability in all applicable governmental fund types; the remainder of the liability is reported as long-term debt in the Statement of Net Position.
O. Vacation and Sick Leave
The City’s policy is to record the cost of vested vacation and sick leave as it is earned. Vacation is payable to employees at the time a vacation is taken or upon termination o f employment. At termination, employees are eligible to convert 50% of unused sick time to service credit; however, sworn fire safety personnel, upon service retirement, may opt to cash out 50% of the value of unused sick leave. Miscellaneous and sworn police employees may accrue compensated time off in lieu of payment for overtime hours. Overtime hours are banked at either time-and-a-half or st raight-time hours depending upon th e nature of the overtime worked. With the implementation of GASB 101, the City records a sick leave liabi lity based on a 3-year average of sick leave used by bargaining unit. The City may choose to eliminate years with abnormal usage from the evaluation (ex. leave usage during pandemic). The sworn fire personnel will be evaluated with the higher of 50% of unused sick leave or the average of 3-years of sick leave used. 50 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. Allocation of Interest Income
The City pools all non-restricted cash for investment purchases and allocates interest income based on month-end cash balances. Interest earned by restricted Cash is posted to their respective accounts.
Q. Other Accounting Policies
Inventories - Inventories of materials and supplies are carried at cost on a weighted-average basis. The City uses the consumption method of accounting for inventories.
Prepaid items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
R. Estimates
The accompanying financial statements require management to mak e estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.
S. Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calcula te the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are conside red to be applied. It is the government’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.
T. Fund Balance Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of commi tted, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in w hich the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when t he components of unrestricted fund balance can be used for the same purpose, committed fund balance is deplete d first, followed by assigned fund balance.
Unassigned fund balance is applied last.
U. Fund Balance Policy
Fund balance of governmental funds is reported in various categ ories based on the nature of any limitations requiring the use of resources for specific purposes.
• Non-spendable fund balance is the portion of fund balance that cannot be spent due to form. Examples include inventories, prepaid amounts, long-term loans, and note s receivable, unless the proceeds are restricted, committed or assigned. Also, amounts that must be m aintained intact legally or contractually, such as the principal of a permanent fund are reported within the non-spendable category.
• Restricted fund balance is the portion of fund balance that is subject to externally enforceable limitations by law, enabling legislation or lim itations imposed by creditors o r grantors. The government itself can establish limitations on the use of resou rces through either a commitment (committed fund balance) or an assignment (assigned fund balance).
51 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • The committed fund balance classification includes amounts tha t can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The governing council is the highest level of decision-making authority for t he government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund bala nce. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.
• Assigned fund balance classification are intended to be used b y the government for specific purposes but do not meet the criteria to be classified as committed. The govern ing council (council) has by resolution authorized the finance director to assign fund balance. The cou ncil may also assign fund balance as it does when appropriating fund balance to cover a gap between estimate d revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment.
Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
• Unassigned fund balance is the residual classification that includes all spendable amounts in the General Fund not contained in other classifications.
U. New GASB Pronouncements Eff ective during Fiscal Year
The following Government Accounting Standards Board (GASB) pron ouncement was effective for and implemented for the fiscal year ended June 30, 2025:
1. GASB Statement No. 101, Compensated Absences
The requirements of this Statement will improve financial reporting by implementing a unified recognition and measurement model that will result in a liability for compensat ed absences that more appropriately reflects when a government incurs an obligation. Establishing the unified mod el will result in consistent application to any type of compensated absence and will eliminate potential comparabili ty issues between governments that offer different types of leave. This Statement will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhan ce the relevance and reliability of information about the liability for compensated absences.
2. GASB Statement No. 102, Certain Risk Disclosures
The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that cur rently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or con straints and related events that have occurred or have begun to occur that make a government vulnerable to a subs tantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.
Management has assessed the impact of this Statement on the Cit y's financial statements and determined that it did not have a material impact.
NOTE 2: STEWARDSHIP, COMPL IANCE AND ACCOUNTABILITY
Deficit Fund Balance and Net Position
At June 30, 2025, the Insurance Re serve, Information Systems, B uilding Maintenance and Operations, and County Parking Lot Fund have deficit net positions of $2,244,506, $447,869, $533,584, and $58,632 respectively.
The deficit is the result of non- current liabilities and will be resolved by future revenues and contributions from other funds.
52 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS
As of June 30, 2025, cash and investments were reported in the accompanying financial statements as follows:
Governmental Funds 63,008,859$
Internal Service Funds 21,357,329
Business-Type Activ ities 43,547,119
Fiduciary Funds 2,588,617
130,501,924$
The City pools all cash and investments that is available for u se for all funds, including fiduciary funds.
Unrestricted and restricted cash and investments, as indicated in the government-wide statement of net position, do not include fiduciary cash and investments. These cash amoun ts are included in the Statement of Fiduciary Net Position – Fiduciary Funds. Each fund type's position in the pool is reported on the Combined Balance Sheet as cash and investments. The Ci ty has adopted an investment pol icy, which authorizes it to invest in various investments.
A. Deposits
At June 30, 2025, the carrying amount of the City’s deposits af ter outstanding checks and deposits in transit was $21,916,229 and the bank balance was $22,309,520. The $(393,291 ) difference represents outstanding checks and other reconciling items.
The California Government Code requires California banks and sa vings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of an entity's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City’s Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in fede ral and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking.
The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depo sitory. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan associati on with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local gover nmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the City.
B. Authorized Investments
Under provisions of the City’s Investment Policy, and in accord ance with Section 53601 of the California Government Code, the City may invest in the following types of investments:
• Securities of the U.S. G overnment, or its agencies
• Certificates of Deposit (or Time Deposits) placed with commerc ial banks and/or savings and loan associations.
• Negotiable Certificates of Deposit
• Bankers Acceptances
• Commercial Papers
• Local Agency Investment Fund (State Pool) Demand Deposits • Passbook Savings Account Demand Deposits
• Federally Insured Thrift and Loan
• Repurchase Agreements
• Medium-Term Corporate Notes
• Floaters or step-ups with marke t driven interest rate adjustments • Mutual Funds of highest ratings
53 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
The City’s investment policy does not allow the use of reverse-repurchase agreements and, accordingly, the City did not borrow through the use of reverse-repurchase agreements at any time during the year.
C. Investments Authorized by Debt Agreements
The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of t he debt agreements, rat her than the general provisions of the California Government Code or the Entity’s investment policy.
D. Investments in State Investment Pool
The City is a voluntary participant in the Local Agency Investm ent Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists o f five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. The City is requir ed to disclose its methods and assumptions used to estimate the fair value of its holdings in LAIF. The City relied upon information provided by the State Treasurer in estimating the City’s fair value position of its holdings in LA IF. The City had a contractual withdrawal value of $20,375,284 whose pro-rata share of fair value was estimated by the State Treasurer to be $20,399,700.
E. GASB Statement No. 31
The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools , as of July 1, 1997. GASB Statement No. 31 establishes fair va lue standards for investments in participating interest earning investment contra cts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the Entity reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. The City maintains investment accounting records and adjusts those records to “fair value” on an annual basis for material amounts. The City’s investment custodian provides market values on each investment instrument on a monthly basis for material amounts. The investments held by the City are widely traded in the financial markets and trading values are readily available from numerous published sources. Material unr ealized gains and losses are recorded on an annual basis and the carrying value of its investments is considered fair value. For the year ended June 30, 2025, the book value of investments exceeded fair value the by $1,154,500.
F. Credit Risk
The City's investment policy limits investments in medium-term notes (MTN’s) to those rated in the top three rating categories by two of the three largest nationally recognized rating services at time of purchase. As of June 30, 2025, the City's investment in medium-term notes consi sted of investments with Microsoft Corp., Coca Cola Co., Costco Wholesale Corp., Apple Inc., Toyota Motor Credit Corp., Bank of New York Mellon Corp., Walt Disney Company, Merck & Co., Amazon.com Inc., Walmart Inc. , Johnson & Johnson, Colgate-Palmolive, and Pepsico. All MTN’s were rated “A” or higher by Moody’s at t ime of purchase. Investment in government agencies issued by the Federal National Mortgage Association, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, and the Federal Farm Credit Banks we re rated “Aaa” by Moody’s and “AA+” by Standard & Poor’s. Asset-Backed S ecurities were rated “Aaa” by Moody’s and “AAA” by Standard & Poor’s. All securities were investment grade and were legal under state and city policies. Investments in U.S. government securities are not considered to have credit risk; therefore, t heir credit quality is not disclosed. As of June 30, 2025, the City's investments in external investment pools and money market mutual funds are unrated.
54 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
G. Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to rec over deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for i nvestments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City does not have a policy for custodial credit risk.
As of June 30, 2025, none of the City’s deposits or investments were exposed to custodial credit risk.
H. Concentration of Credit Risk
The City’s investment policy imposes restrictions for certain t ypes of investments with any one issuer for the following types of investments. With respect to concentration o f credit risk, as of June 30, 2025, the City is in compliance with its investment policy’s restrictions. In accord ance with GASB Statement No. 40, the city is exposed to credit risk if it has invested more than 5% of its t otal investments in any one issuer. The following issuers are above 5% of the total investments: Federal Farm Cre dit (7.32%), Federal Home Loan Bank (11.1%), and Fannie Mae (7.44%). These government-sponsored investments are backed by the federal government and are below the City’s investment policy limit of 33.33% of total investments.
I. Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment p olicy states that no investment can mature more than five years from the date of purchase in line with state co de requirements. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.
J. Fair Value Measurement and Application
The City categorizes its fair value measurements 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.
Level 1 inputs are quoted prices in active markets for identica l assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy use a market approach to measure fair valu e. The City’s pricing vendor, through rules based logic, utilizes valuation techniques that reflect market partic ipants’ assumptions and vary by asset class and per methodology, and maximizes the use of relevant observable data including quoted prices for similar assets, benchmark yield curves and market corroborated inputs.
The City has the following recurring fair value measurements as of June 30, 2025:
Total Uncategorized 1 2
Local Agency Investment Fund (LAIF) 20,399,700$ 20,399,700$ -$ -$ US Treasury and Agency Notes 40,281,460 - 40,281,460 - US Agencies 19,028,650 - 1,007,200 18,021,450 Medium-Term Corporate Notes 21,535,390 - - 21,535,390 Total Inv estments 101,245,200$ 20,399,700$ 41,288,660$ 39,556,840$ Fair Value
Level
Inv estment Type
55 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
As of June 30, 2025, the City had the following investments and original maturities:
6 months 6 months 1 to 3 More than Fair
or less to 1 year years 3 years Value
Pooled investments:
LAIF 20,399,700$ -$ -$ -$ 20,399,700$ US Securities 10,909,720 1,940,120 18,458,210 8,973,410 40,281,460 Government Agency Securities 4,979,800 970,640 6,907,380 6,170,830 19,028,650 Medium Corporate Notes 1,951,580 15,604,430 3,979,380 21,535,390 Total pooled investments 36,289,220$ 4,862,340$ 40,970,020$ 19,123,620$ 101,245,200 Restricted cash and investments:
PARS pension 4,711,798
Cash and investments with fiscal agent
Money market mutual funds
Utility undergrounding 1,258,743
Water/Wastewater, Metlox Refunding bonds 100,628
Marine certificates of participation 54,350
Police & Fire certificate of participation refunding bonds 75,734 Fire Station 2 COPs 129,501
Pension Obligation Bonds 1,004,731
7,335,485
Other cash and investments:
Demand deposits 21,846,548
Other deposits 69,681
Petty cash 5,010
Total other cash and investments 21,921,239
Total cash and inv estments 130,501,924$
Remaining Investment Maturities
NOTE 4: INTERFUND TRANSACTIONS
Advances
During fiscal year 2022-23, the Parking fund made an advance of $900,000 to the State Pier and Parking Lot fund to assist in financing the Pier Railing Replacement Project. Th e advance will be repaid with parking meter revenues over an estimated four-year period or sooner if parkin g meter revenues exceed estimates. A payment of $225,000 was made during the fiscal year, the balance of the advance was $450,000 as of June 30, 2025.
56 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 4: INTERFUND TRANSACTIONS (CONTINUED)
Interfund Transfers
With City Council approval, resources may be transferred from o ne fund to another. Transfers between individual funds during the fiscal year ended June 30, 2025, are presented below:
Nonmajor Internal
General Governmental Service
Transfers Out Fund Funds Funds Total
General Fund - $ 15, 415,471$ 258,535 $ 266,114$ 15, 940,120$ Nonmajor Governmental Funds - - - 412,751 412,751 Water - - - 38,460 38,460 Wastewater - - - 1,270 1,270 Parking Fund - - - 34,457 34,457 Nonmajor Enterprise Funds 230,407 - - 38,580 268,987 Internal Service Funds - - 8,350 518 8,868 Total 230,407 $ 15, 415,471$ 266,885 $ 792,150$ 16, 704,913$ Transfers in
Major Capital
Improvement
Fund
The interfund transfers scheduled above resulted from a variety of City initiatives including the following:
• The General Fund transferred a total of $15,415,471 to the Major Capital Improvement Fund to support capital projects.
• The General Fund also transferred $258,535 to support operatio ns in the Street Light Nonmajor Governmental Fund.
• The Nonmajor County Parking Fund transferred $230,407 to the g eneral fund to fund operations based on an operating agreement.
• Fleet Internal Service Fund re ceived a total of $792,150 from various funds for the purchase of vehicles. • Fleet Internal Service Fund transferred $8,350 to Nonmajor Governmental Funds to record the credit of a surplus.
NOTE 5: LEASES
Leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an intangible right-to-use lease asset. A lessor is require d to recognize a lease receivable and a deferred inflow of resources.
A. Leases Receivable and Deferred Inflows of Resources
The City is reporting lease receivable of $21,726,755 at June 30, 2025. For the fiscal year, the City reported lease revenue of $1,349,562 and lease interest revenue of $270,571. The leases have interest rate of 1.1620% to
3.2380%. The value of the deferred inflow of resources as of June 30, 2025 is $21,290,299.
Lease
Lease Lease Interest
Lease Receivable Revenue Revenue
Bay Club Manhattan Beach, LLC 9,883,041$ 528,556$ 120,393$ Verizon 16/Valley Lease 922,851 83,584 11,459 Manhattan Beach Hotel TRS, LLC 2,917,389 376,341 38,116 Metlox LLC 6,395,972 198,592 76,237
New Cingular Wireless PCS, LLC 1,456,592 107,552 17,794 United State Post Office 150,910 54,937 6,572 21,726,755$ 1,349,562$ 270,571$
57 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LEASES (CONTINUED)
Bay Club Manhattan Beach LLC. – In May 2017, the City entered i nto an amended lease with Bay Club Manhattan Beach, LLC for the property known as the Manhattan Country Club which includes an office building, a tennis complex, a parking lot and slope easement parcels. Based on the lease agreement, the City will receive monthly payment through December 2043.
Verizon 16/Valley Lease – In June 2010, the City entered into a lease agreement with SMSA Limited Partnership d/b/a Verizon Wireless for certain parcel of property for the i nstallation and maintenance of utility wires, poles, cables, conduits and pipes for an initial term of 5 years with extensions up to four five-years terms. The City will receive monthly installments on the first day of each month.
Manhattan Beach Hotel TRS, LLC – In March 1983. the City entere d into a ground lease with Manhattan Beach Hotel properties, a California general partnership for unimproved property for tenant to build and operate a hotel and golf course. The term of the lease is for fifty (50) years commencing March 1983. The City is receiving an initial annual rent of $400,000 payable in monthly installments.
Metlox LLC – in May 2002, the City entered into a disposition & development agreement and ground lease with Metlox LLC for three building pad parcels located on top of a s ubterranean parking structure to be constructed as part of the project. The term of the lease is for 55 years commencing on May 2002 with the right. Rent to the City is due in monthly installments.
New Cingular Wireless PCS, LLC – In September 2018, the City en tered into a structure lease agreement with New Cingular Wireless PCS, LLC for ground and rooftop space for the placement of tenant’s antenna and communication equipment. The original term of the lease is for five years with four automatic five-year terms renewal. Rent is due to the city in monthly installments and wi ll increase annually by 5% in year two of the initial agreement.
United State Post Office – in April 2018, the City leased approximately 1,900 square feet of interior space and additional space to the United States Postal Service. The lease renewed in March 2024 and was extended through 2028. The annual rent to the City is $53,000 payable in equal installments at the end of each month.
The principal and interest payments expected to maturity are as follows:
Principal Interest
Fiscal Year Payment Payment Total
2026 1,215,833$ 255,598$ 1,471,431$
2027 1,239,836 240,361 1,480,197
2028 1,250,016 224,809 1,474,825
2029 1,231,359 209,405 1,440,764
2030 1,255,815 195,096 1,450,911
2031 - 2035 5,733,757 758,344 6,492,101
2036 - 2040 4,083,738 470,018 4,553,756
2041 - 2045 3,048,972 244,906 3,293,878
2046 - 2050 1,074,710 130,290 1,205,000
2051 - 2055 1,138,619 66,381 1,205,000
2056 - 2060 454,100 7,814 461,914
21,726,755$ 2,803,022$ 24,529,777$
Governmental Activities
58 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 5: LEASES (CONTINUED)
B. Lease Payable and Lease Assets
Governmental Activities:
The City leases certain facilities from the Manhattan Beach Uni fied School District and miscellaneous equipment from various companies for the City’s operation. The terms of t hese leases expire in fiscal year 2033-34 and 2033-34. As of June 30, 2025, the value of the lease payable is $8,356,190. In fiscal year 2024-25, the City paid $1,735,723 on these leases including embedded interest rates between 2.6070% and 2.9480%.
The following is a summary of changes in lease payable for the year ended June 30, 2025:
Balance Balance Due in
Lease Underlying Asset June 30, 2024 Additions Deletions June 30, 2 025 One Year Manhattan Beach Unified School District facilities 8,412,787$ 88,102$ 713,188$ 7,787,701$ 764,817$ Solar trash bins 246,885 - 95,970 150,915 99,868 Canon multifunction copiers - 470,045 52,471 417,574 90,048 AIS multifunction copiers 58,401 - 58,401 - - 8,718,073$ 558,147$ 920,030$ 8,356,190$ 954,733$
Future principal and interest requirements to maturity for lease liability are as follows:
Principal Interest Total
Fiscal Year Payments Payments Payments
2026 954,733$ 207,654$ 1,162,387$
2027 962,623 181,832 1,144,455
2028 970,978 156,721 1,127,699
2029 1,033,183 130,462 1,163,645
2030 1,039,170 102,957 1,142,127
2031 - 2035 3,395,503 140,276 3,535,779
8,356,190$ 919,902$ 9,276,092$
Governmental Activities
Lease assets at June 30, 2025 include the following:
Lease Underlying Asset
Amount of
Leased Capital
Assets
Accumulated
Amortization
Manhattan Beach Unified School District facilities 9,184,768$ 1,836,954$ Solar trash bins 318,297 169,099
Canon multifunction copiers 470,044 54,577
AIS multifunction copiers 400,812 400,811
Total 10,373,921$ 2,461,441$
59 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 6: SUBSCRIPTION BASED TECHNOLOGY ARRANGEMENTS
Subscription Liability
Balance as of Balance as of Due in
June 30, 2024 Additions Reductions June 30, 2025 One Year Governmental activities 443,963$ 906,556$ 355,076$ 995,443$ 261,990$ Business-type activities 13,054 - 13,054 - - Total Subscription Liability 457,017$ 906,556$ 368,130$ 995,443$ 261,990$
Governmental Activities:
As of June 30, 2025, the City had 12 active subscriptions. The subscriptions have payments that range from $7,260 to $183,463 and interest rates that range from 1.890% to 3.628%. As of June 30, 2025, the total combined value of the subscription liability is $995,443, and the total combined value of the short-term subscription liability is $261,990. The combined value of the right to use assets as of June 30, 2025 is $1,596,623 with accumulated amortization of $540,951.
Future principal and interest requirements to maturity are as follows:
Fiscal Year
Principal
Payments
Interest
Payments
Total
Payments
2025 261,990$ 34,868 $ 296,858 $
2026 194,007 26,402 220,409
2027 173,447 19,571 193,018
2028 179,738 13,277 193,015
995,443$ 100,876 $ 1,096,319 $
Governmental Activities
The amount of subscription assets at June 30, 2025 was as follows:
Asset Class
Subscription
Asset Value
Accumulated
Amortization
Governmental activities
Software subscription 1,596,622$ (540,949)$
Total subscriptions 1,596,622$ (540,949)$
As of Fiscal Year-End
60 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: CAPITAL ASSETS AND DEPRECIATION
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-Wide Statement of Net Position. The City elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructure reporting, whereby depreciation and amortization expense and accumulated depreciation and amortization have been recorded. T he following table presents the capital assets activity for the year ended June 30, 2025:
Balance Balance
June 30, 2024 Additions Deletions Transfers June 30, 2025 Governmental activities:
Capital assets, not being depreciated/amortized
Land 33,634,565$ 13,004,145$ -$ -$ 46,638,710$ Construction-in-progress 26,114,182 5,470,263 - (2,332,378) 29,252,067 Total capital assets, not being depreciated/amortized 59,748,747 18,474,408 - (2,332,378) 75,890,777 Capital assets, being depreciated/amortized
Buildings and structures 44,106,833 - - - 44,106,833 Machinery and equipment 6,265,098 125,701 - - 6,390,799 Intangible assets 1,060,072 - - - 1,060,072 Vehicles 15,604,736 1,391,387 (721,541) 964,082 17,238,664 Infrastructure
Streets/ Roadways 75,964,066 2,120,846 - 746,813 78,831,725 Parks & Recreation 22,703,311 - - 621,483 23,324,794 Lease assets
Building and structure 9,071,298 113,470 - - 9,184,768 Machinery and equipment 829,980 470,045 (110,872) - 1,189,153 Subscriptions 724,796 974,243 (102,417) - 1,596,622 Investment in RCC Joint Venture 3,704,486 45,182 (20,088) - 3,729,580 Total capital assets, being depreciated/amortized 180,034,676 5,240,874 (954,918) 2,332,378 186,653,010 Less accumulated depreciation/amortization
Buildings and structures (17,233,443) (851,908) - - (18,085,351) Machinery and equipment (5,347,943) (237,946) - - (5,585,889) Intangible asset (340,352) (89,965) - - (430,317) Vehicles (9,747,639) (939,419) 721,541 - (9,965,517) Infrastructure
Streets/ Roadways (41,452,019) (1,822,473) - - (43,274,492) Parks & Recreation (9,020,405) (404,883) - - (9,425,288) Lease assets
Building and structure (907,130) (929,824) - - (1,836,954) Machinery and equipment (530,744) (111,835) 18,092 - (624,487) Subscriptions (327,567) (315,803) 102,421 - (540,949) Investment in RCC Joint Venture (2,053,095) (168,839) 14,174 - (2,207,760) Total accumulated depreciation/amortization (86,960,337) (5,872,895) 856,228 - (91,977,004) Total capital assets, being depreciated/amortized, net 93,074,33 9 (632,021) (98,690) 2,332,378 94,676,006 Total governmental activities capital assets 152,823,086$ 17,842,387$ (98,690)$ -$ 170,566,783$ 61 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: CAPITAL ASSETS AND DEPRECIATION (CONTINUED)
Depreciation expense was charged to functions of the primary government as follows:
General government 189,116$
Public safety 1,267,137
Public works 554,476
Parks and recreation 2,833,095
Internal serv ice funds 1,029,071
Total depreciation/amortization expense 5,872,895$
Balance Balance
June 30, 2024 Additions Deletions Transfers June 30, 2025 Business-type activities:
Capital assets, not being depreciated/amortized
Land - Water 307,967$ -$ -$ -$ 307,967$ Land - Storm Drain 857,650 - - - 857,650 Land - Parking 1,441,817 - - - 1,441,817 Construction-in-progress 54,828,206 3,117,352 - (6,627,818) 51,317,740 Total capital assets, not being depreciated/amortized 57,435,640 3,117,352 - (6,627,818) 53,925,174 Capital assets, being depreciated/amortized
Buildings and structures - Parking 18,086,181 - - (1,396,710) 16,689,471 Machinery and equipment
Parking 3,314,879 - - 1,396,710 4,711,589 Water 34,503,851 25,375 - 4,805,480 39,334,706 Storm Drain 7,703,405 - - 1,822,338 9,525,743 Wastewater 16,431,020 - - - 16,431,020 Intangible assets
Parking 28,507 - - - 28,507 Water 62,177 - - - 62,177 Wastewater 33,302 - - - 33,302 Subscriptions 38,840 - (38,840) - - Total capital assets, being depreciated/amortized 80,202,162 25,375 (38,840) 6,627,818 86,816,515 Less accumulated depreciation/amortization
Buildings and structures - Parking (3,007,457) (165,744) - (118,289) (3 ,291,490) Machinery and equipment
Parking (2,156,325) (150,989) - 118,289 (2,189,025) Water (17,125,842) (626,069) - - (17,751,911) Storm Drain (5,179,928) (105,722) - - (5,285,650) Wastewater (8,517,222) (316,172) - - (8,833,394) Intangible assets
Parking (8,235) (2,534) - - (10,769) Water (17,796) (5,548) - - (23,344) Wastewater (9,620) (2,961) - - (12,581) Subscriptions (31,070) (7,770) 38,840 - - Total accumulated depreciation/amortization (36,053,495) (1,383,509) 38,840 - (37,398,164) Total capital assets, being depreciated/amortized, net 44,148,66 7 (1,358,134) - 6,627,818 49,418,351 Total business-type activ ities capital assets 101,584,307$ 1,759,218$ -$ -$ 103,343,525$
62 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 7: CAPITAL ASSETS AND DEPRECIATION (CONTINUED)
Depreciation expense was charged to functions of the primary government as follows:
Water 631,617$
Wastewater 326,903
Parking 319,267
Storm Drain 105,722
Total depreciation/amortization expense 1,383,509$
NOTE 8: LONG-TERM DEBT
The following is a summary of changes in long-term debt for the year ended June 30, 2025:
Balance Balance Due in
June 30, 2024 Adjustments * Additions** Deletions June 30, 2025 One Year Governmental Activities:
Leases payable (Note 5) 8,718,073$ -$ 558,147$ 920,030$ 8,356,190$ 954,733$ Subscription payable (Note 6) 443,963 - 906,556 355,076 995,443 261,990 Compensated absences (Note 9) 5,193,806 1,103,720 (40,881) - 6, 256,645 3,511,603 Claims liability (Note 15) 19,717,808 - 6,935,242 7,460,019 19,193,031 11,189,031 Certificates of participation:
Marine Av e Park Refunding COP Series 2016 3,730,000 - - 360,000 3,370,000 370,000 2013 Police and Fire Refunding COP 4,955,000 - - 600,000 4,355,000 620,000 2021 Fire Station No. 2 COP 7,075,000 - - 140,000 6,935,000 145,000 2021 Pension Obligation Bonds 79,516,630 - - 3,422,715 76,093,915 3,457,056 Deferred loss on refunding (241,407) - - (32, 187) (209,220) - Unamortized premium 1,563,813 - - 94,156 1,469,657 - Total Gov ernmental 130,672,686$ 1,103,720$ 8,359,064$ 13,319,809$ 126,815,661$ 20,509,413$ Business-Type Activities:
Subscription payable (Note 6) 13,053$ -$ -$ 13,053$ -$ -$ C
ompensated absences (Note 9) 169,660 96,285 29,192 - 295,137 187,785 Certificates of Participation
2021 Refunding COPs 4,695,000 - - 670,000 4,025,000 705,000 2021 Pension Obligation Bonds 1,678,370 - - 72,285 1,606,085 72,944 Unamortized premium 911,287 - - 142,584 768,703 - Total Business Type 7,467,370$ 96,285$ 29,192$ 897,922$ 6,694,925$ 965,729$ * - Adjustments related to implementation of GASB 101
** - Compensated absences presented net of deletions
A. Marine Avenue Certificates of Participation Series 2016
On November 9, 2016, the City issued $5,905,000 Certificate of Participation Series 2016 (Marine Field Refunding) to refund the outstanding balance of t he Variable Rate Demand Refunding Certificates of Participation Series 2002. T he Certificates represents the p roportionate interest on the lease payments to be made by the City as rent for the use of certain real property l ocated in the City and consisting of the police department and fire department headquarter facility. The Certif icates bear interest at a rate of 3% to 4% with principal ranging from $265,000 to $465,000 and maturing on Jan uary 2033. The balance at June 30, 2025, includes an unamortized bond premium of $206,382 which will be amortized over the life of the issue. 63 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (CONTINUED)
Annual debt service requirements to maturity for the Marine Ave nue Certificates of Participation Series 2016 are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026 370,000 $ 108,700 $ 478,700 $
2027 390,000 93,900 483,900
2028 405,000 78,300 483,300
2029 415,000 66,150 481,150
2030 430,000 47,250 477,250
2031-2033 1,360,000 61,950 1,421,950
Total 3,370,000 $ 456,250 $ 3,826,250 $
In the event of a default, there is no remedy of acceleration o f the total lease payments due over the term of the lease agreement and the trustee is not empowered to sell the le ased premises and use the proceeds of such a sale to redeem the 2016 certificates or pay debt service thereon. The city will be liable only for lease payments on an annual basis, and the trustee will be required to seek a separate judgment each year for the year’s defaulted lease payments.
B. 2013 Police and Fire Facility Refunding Certificates of Participation
In February 2013, the City issued $10,510,000 of Certificates of Participation, Series 2013, to advance refund the 2004 Police and Fire Certificates of Participation (2004 COP). The payments under the lease agreement are due January and July of each year until maturity in January 2032 and include interest rates ranging from 2% to 4%.
The proceeds were used to purchas e U.S. Government securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service pay ments of the refunded debt. The balance at June 30, 2024, includes an unamortized bond premium of $171,342 which will be amortized over the life of the issue.
The reacquisition price exceeded the net carrying amount of the old debt by $595,473. This amount is being deferred as an outflow of resources and amortized over the remaining life of the refunded debt. The outstanding balance at June 30, 2025 is $209,220.
Annual debts service requirements to maturity for the 2013 Poli ce and Fire Certificates of Participation are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026 620,000$ 151,463$ 771,463$
2027 650,000 126,663 776,663
2028 675,000 100,663 775,663
2029 695,000 79,569 774,569
2030 720,000 45,281 765,281
2031-2033 995,000 42,019 1,037,019
Total 4,355,000$ 545,658$ 4,900,658$
64 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (CONTINUED)
In the event of a default, there is no remedy of acceleration o f the total lease payments due over the term of the lease agreement and the trustee is not empower to sell the leased premises and use the proceeds of such a sale to redeem the 2013 certificates or pay debt service thereon. T he city will be liable only for lease payments on an annual basis, and the trustee will be required to seek a separa te judgment each year for the year’s defaulted lease payments.
C. 2021 Fire Station COP
In August 2021, the City of Manhattan Beach issued $7,440,000 o f Certificates of Participation (COP) to pay a portion of the costs to constructing and equipping a fire station and related improvements and pay certain costs of issuance. The payments under the lease agreement are due January and July of each year until maturity in January 2051 and include interest rates ranging from 3% to 5%. The COP includes an unamortized premium of $1,091,934 at June 30, 2025, which will be amortized over the life of the issue.
Annual debt service requirements to maturity for the 2021 Fire Station Certificates of Participation are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026 145,000 $ 255,375 $ 400,375 $
2027 155,000 247,875 402,875
2028 165,000 239,875 404,875
2029 170,000 231,500 401,500
2030 180,000 222,750 402,750
2031-2035 1,050,000 966,150 2,016,150
2036-2040 1,300,000 714,250 2,014,250
2041-2045 1,560,000 452,525 2,012,525
2046-2050 1,815,000 198,825 2,013,825
2051-2055 395,000 5,925 400,925
Total 6,935,000$ 3,535,050$ 10,470,050$
In the event of default, there is no remedy of acceleration of the total lease payments due over the term of the lease agreement and the Trustee is not empowered to sell the le ased premises and use the proceeds of such a sale to redeem the 2022 Certificates or pay debt service. The C ity will be liable for the Lease payment on an annual basis and the Trustee would be required to seek a separate judgement each year for the year’s defaulted lease payments.
D. 2021 Refunding Certificates of Participation
In November 2021, the City of Manhattan Beach issued $5,925,000 of fixed rate Refunding Certificates of Participation Series 2021 to refund the Certificates of Partici pation (Metlox and Water/Wastewater Refunding) Series 2012 (“the Certificates”). The payments under the lease agreement are due January and July of each year with an interest rate of 5% and mature through 2032. The C OP includes an unamortized premium of $768,703 at June 30, 2025, which will be amortized over the life of the issue.
65 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 8: LONG-TERM DEBT (CONTINUED)
Annual debt service requirements to maturity for the Metlox and Water/Wastewater Refunding Certificates of Participation are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026 705,000 $ 201,250 $ 906,250 $
2027 490,000 166,000 656,000
2028 515,000 141,500 656,500
2029 540,000 115,750 655,750
2030 560,000 88,750 648,750
2031-2032 1,215,000 91,750 1,306,750
Total 4,025,000$ 805,000$ 4,830,000$
In the event of default, there is no remedy of acceleration of the total lease payments due over the term of the lease agreement and the Trustee is not empowered to sell the le ased premises and use the proceeds of such a sale to redeem the 2021 Certificates or pay debt service. The C ity will be liable for the Lease payment on an annual basis and the Trustee would be required to seek a separate judgement each year for the year’s defaulted lease payments.
E. 2021 Taxable Pension Obligation Bonds
In May 2021, the City of Manhattan Beach issued $91,275,000 of Taxable Pension Obligation Bonds (POB). The bonds were issued to pay the City’s unfunded accrued actuarial lability to the California Public Employees Retirement System with respect to the City’s defined benefit retirement plans for City employees. The payments under the agreement are due January and July of each year with interest rates ranging from 0.12% to 2.79% and mature through January 2043.
Annual debt service requirements to maturity for the 2022 Taxable Pension Obligation Bonds are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2026 3,530,000$ 2,009,411$ 5,539,411$
2027 3,580,000 1,967,546 5,547,546
2028 3,635,000 1,911,375 5,546,375
2029 3,710,000 1,845,255 5,555,255
2030 3,785,000 1,729,757 5,514,757
2031-2035 20,330,000 7,258,922 27,588,922
2036-2040 23,330,000 4,256,793 27,586,793
2041-2045 15,800,000 748,690 16,548,690
Total 77,700,000$ 21,727,749$ 99,427,749$
The bonds are not secured by any property other than the funds that the City has actually deposited with the trustee. If the City is in bankruptcy, it may not be obligated to make any further deposits with the Trustee, it may not be obligated to make any further allocations to the Bonds, and it may not be obligated to turn over to the Trustee any moneys that have been allocated to the Bonds in the City treasury. As a result, the Bonds would likely be treated as unsecured obligations of the City in the bankruptcy case.
66 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 9: COMPENSATED ABSENCES
At June 30, 2025, the total citywide accrued liability for comp ensated absences amounted to $6,551,782. $6,256,645 relates to general government services and $295,137 to business-type activities.
NOTE 10: NON-CITY OBLIGATION
Reported in the custodial fund are special assessment tax bonds related to various special assessment districts included within the City. In March 2018, the City refunded the outstanding bonds for Underground Assessment Districts 04-1, 04-3, 04-5, 05-2 and 05-6. These bonds were issued for the purpose of financing the construction of certain public improvements within the underground utility a ssessment districts. The amount refunded was $6,245,000. The sources of the refunding were bond proceeds of $4,995,000, balance in the capital improvement fund, current year assessments, a nd net reduction in bond reserve requirements. In December 2019, the City issued two separate limited obligation improvement bonds totali ng $9,390,000 under provisions of the Improvement Bond Act of 1915, for Underground Assessment Distri cts 19-12 and 19-14 and in March 2020, the City issued $5,245,000 for Underground District 19-4. These bonds were issued for the purpose of financing the construction of certain public improvements within the undergro und utility assessment districts. The bonds are secured solely by the subject properties and the amounts held in respective reserve and bond funds. The bonds are not secured by the general taxing power of the City of Manh attan Beach and the City has not pledged credit for payment thereof. The debt outstanding as June 30, 2025, consists of the following:
Original Oustanding
Description Amount 6/30/2025
Reassessment District No. 2018 Limited Obligation Refunding Bonds, Series 2018 4,995,000$ 965,000$ Assessment District No. 19-12 Limited Obligation Improvement Bonds, 2019 Series A 4,605,000 3,725,000 Assessment District No. 19-14 Limited Obligation Improvement Bonds 2019, Series A 4,785,000 3,935,000 Assessment District No. 19-4 Limited Obligation Improvement Bonds, 2020 Series A 5,245,000 4,210,000 Total 12,835,000$
NOTE 11: CALPERS RETIREMENT PLANS
Net Pension Deferred Pension Deferred Pension Pension
Liability/(Asset) Outflows Inflows Expense/(Income)
CalPERS Plans
Miscellaneous Plan 8,253,639$ 6,722,867$ 119,569$ 2,787,731$ Safety - Police Plan 7,642,016 9,412,259 7,141,482 3,900,657 Safety - Fire Plan 4,185,735 4,763,140 3,155,554 1,989,304 Total CalPERS 20,081,390 20,898,266 10,416,605 8,677,692 City Plans
Supplemental Retirement Plan 40,268 - - 7,564 Single Highest Year Plan 67,885 - - 30,099 Total City Plans 108,153 - - 37,663 Total 20,189,543$ 20,898,266$ 10,416,605$ 8,715,355$ 67 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
A. Miscellaneous Employee Pension Plan
Plan Description
The Miscellaneous Plan of the City of Manhattan Beach is an age nt multiple-employer defined benefit pension plan administered by the California Public Employees’ Retiremen t System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions ( for funding, but not accounting purposes), and membership information are listed in their respective June 30, 2023 Annual Actuarial Valuation Reports. Details of the benefits provided can be obta ined in Appendix B of the actuarial valuation reports. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.
Benefit Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries . Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligi ble for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic D eath Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The plan provisions and b enefits in effect at June 30, 2024 measurement date, are summarized as follows:
Tier I * PEPRA
Hire date Prior to or on
December 31,2012
On or after
January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit v esting schedule 5 years of serv ice 5 years of serv ice Benefit payments monthly for life monthly for life
Retirement age minimum 50 yrs minimum 52 yrs
Monthly benefits, as a % of
eligible compensation
1.426% - 2.418%
50 yrs - 63+ yrs,
respectively
1.000% - 2.500%,
52 yrs - 67+ yrs,
respectively
Required employee contribution rates 7.000% 7.750%
Required employer contribution rates (1) 9.760% 9.760%
* Closed to new entrants
(1) Blended rate.
Miscellaneous Plan
Benefit payments are calculated using the benefit formula above multiplied by the number of years of service and highest single year of compensation for Tier 1 or highest three year av erage of compensation for PEPRA.
68 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
At June 30, 2025, the following employees were covered by the benefit terms of the plan:
Description Classic PEPRA
Active members 85 175
Transferred members - 148
Terminated members - 202
Retired members and
beneficiaries - 297
Total 85 822
Number of Participants
Miscellaneous Plan
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially de termined 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 em ployer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employe r contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribut ion requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2025, the employer contributions recognized as a reduction to net pension liability for the Miscellaneous Plan was $2,372,832.
Net Pension Liability/(Asset)
The City’s net pension liability/(asset) is measured as the tot al pension liability, less the pension plan’s fiduciary net position. The net pension li ability/(asset) of the Miscellaneous Plans is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023. A summary of principal assumptions and methods used to determine the net pension liability/(asset) is shown below.
69 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability/(Asset)
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table 1 Derived using CalPERS’ membership data for all funds
Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until
Purchasing Power Protection Allowance floor on
purchasing power applies, 2.30% thereafter
Actuarial Assumptions
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 gener ational 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.
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 t ook into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years usin g 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:
Asse t Cla ss (1)
Assume d Asse t
Allocation
Real Return
Years 1 - 10 (1, 2)
Global Equiry - Cap-weighted 30.00% 4.54%
Global Equiry - Non-Cap-weighte 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corportates 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%
Total 100.00%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2022 Asset Liability Management study. 70 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
Discount Rate
The discount rate used to measure the total pension liability w as 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from pla n members will be made a t the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Changes in the Net Pension Liability/(Asset)
The following table shows the changes in net pension liability/(asset) recognized over the measurement period.
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Assets)
(c)=(a)-(b)
Balance at: 6/30/2023 (Valuation Date) 145,262,433 $ 134,468,965 $ 10,793,468 $ Changes Recognized for the Measurement Period:
Service Cost 3,558,852 - 3,558,852 Interest on the Total Pension Liability 9,939,907 - 9,939,907 Changes of Benefit Terms - - - Difference between Expected and Actual
Experience 380,620 - 380,620 Net Plan to Plan Resource Movement - (12,726) 12,726 Contribution from the Employer - 2,205,544 (2,205,544) Contributions from Employees - 1,650,807 (1,650,807) Net Investment Income - 12,685,001 (12,685,001) Benefit Payments including Refunds of Employee
Contributions (6,731,717) (6,731,717) -
Administrative Expense - (109,418) 109,418 Net Changes During 2023-24 7,147,662 9,687,491 (2,539,829) Balance at: 6/30/2024 (Measurement Date) 152,410,095$ 144,156,456$ 8,253,639$ Increase (Decrease)
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate
The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate +1%
(7.90%)
Plan's Net Pension
Liability/(Assets) 29,251,737$ 8,253,639 $ (8,941,134) $
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves , fiduciary self-insu rance and OPEB expense
71 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensiv e Financial Report closing and final reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2023), the n et pension liability was $10,793,468. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense/(income) of $2,787,731 for the Plan.
As of June 30, 2025, the City has deferred outflows and deferre d inflows of resources related to pensions as follows:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
City pension contributions subsequent to
measurement date 2,372,832 $ - $
CalPERS deferrals
Changes of Assumptions 415,739 -
Differences Between Expected and Actual
Experience 872,337 119,569
Net Difference between Projected and Actual
Earnings on Pension Plan Inv estments 3,061,959 - Total CalPERS deferrals 4,350,035 119,569 Total 6,722,867$ 119,569 $
Miscellaneous Pension Plan
The $2,372,382 reported as deferre d outflows of resources related to contributions subsequent to the measurement date will be recogni zed as a reduction of the net p ension liability in the year ended June 30, 2026.
Other amounts reported as deferre d outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period
ended
June 30:
Net Deferred
Outflows/(Inflows) of
Resources
2025 1,557,211$
2026 3,836,386
2027 (459,254)
2028 (703,877)
4,230,466$
72 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pen sion liability and fiduciary net position are recognized in pension expense syst ematically over time. The fir st amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amo unts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
The EARSL for the Plan for the measurement period ending June 30, 2024 is 3.5 years, which was obtained by dividing the total service years of 3,173 (the sum of remaining service lifetimes of the active employees) by 907 (the total number of participants: active, inactive, and re tired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
B. Safety Police Pension Plan a nd Safety Fire Pension Plan
Plan Description
All qualified permanent and probat ionary safety employees are e ligible to participate in the Safety Risk Pool Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of a safety risk pool, which are comprised of individual employer safety rate plans, respectively. Individual employers may sponsor more than one safety rate plan. Each individual employer rate plan generally has less than 100 active members.
Benefits Provided
The Plan was established to provide retirement, death and disab ility benefits to public agency rate plans with generally less than 100 active members. The benefit provisions for PERF C employees are established by statute. A full description regarding the number of employees c overed, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information for the respective rate plan is listed in the respective rate plan’s June 30, 2019 Annual Valuation Report (f unding valuation). Details of the benefits provided can be obtained in Appendix B of the funding evaluatio n report. This report and CalPERS’ audited financial statements are publicly available reports tha t can be found on CalPERS’ website at https://www.calpers.ca.gov/page/forms-publications.
Net Difference between
projected and actual
earnings on pension plan
investments
5 year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of
all members that are provided with benefits
(active, inactive, and retired) as of the beginning
of the measurement period
73 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
Below is a summary of the plan provisions and benefits in effec t at June 30, 2024 measurement date, for which the City of Manhattan Beach has contracted:
Tier I * PEPRA Tier I * PEPRA
Hire date Prior to or on
December 31,2012
On or after
January 1, 2013
Prior to or on
December 31,2012
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years of service 5 years of service 5 y ears of service 5 years of service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 50 yrs minimum 50 yrs Monthly benefits, as a % of
eligible compensation 3.000%, 50+ yrs 2.700%,
50 yrs - 57+ yrs,
3.000%, 50 yrs -
55+ yrs,
2.700%,
50 yrs - 57+ yrs,
Required employee contribution rates 9.000% (1) 14.500% 9.000% (1 ) 14.500% Required employer contribution rates 29.09% (3) 14.500% 26.11% (2) 14.500% Management safety
Employee 9.000% 14.500% 9.000% 14.500%
Employer 29.300% 14.720% 26.290% 14.720%
* Closed to new entrants
(1) Not including 3% cost share, which would increase rate to 12%. (2) Not including cost share, which will lower rate to 23.110%. (3) Not including cost share, which will lower rate to 26.090%.
Safety Police Plan Safety Fire Plan
Benefit payments are calculated using the benefit formula above multiplied by the number of years of service and highest single year of compensation for Tier 1 or highest three year average of compensation for PEPRA.
Employees Covered
At June 30, 2024 measurement date, the following employees were covered by the benefit terms of the Plan:
Description Classic PEPRA Classic PEPRA
Active members 38 21 24 4 Transferred members 10 2 3 1 Terminated members 10 8 2 - Retired members and beneficiaries 130 - 56 - Total 188 31 85 5 Number of members
Safety Police Plan Safety Fire Plan
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pool s, the Plan’s actuarially dete rmined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 74 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
For the year ended June 30, 2025, the employer contributions re cognized as a reduction to the net pension liability was $2,276,614 for the Safety Police Plan and $1,341, 800 for the Safety Fire Plan for a total of $3,618,414 for the safety plans.
Pension Liabilities/Assets, Pension Expenses and De ferred Outflows/Inflows of Resources Related to Pensions
The City of Manhattan Beach reported net a pension liability at June 30, 2025, of $7,642,016 and $4,185,735 for its proportionate shares of the Safety Police Plan and the Safety Fire Plan respectively.
The City’s net pension liability/ (asset) for the safety plan is measured as the proportionate share of the net pension liability/asset. The net pension liability/(asset) of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability/(asset) was determined by an actuarial valuation as of June 30, 2023. The City’s proportion of the net pension liability/(asset) was based on a projection of the City’s long-term share of contributions to the pension p lans relative to the projected contributions of all participating employers, actuarially determined. The City’s pro portionate share of the net pension liability/(asset) for the safety plan as of June 30, 2023 and 2024, was as follows:
Safety Fire Plan Safety Police Plan
Proportion - June 30, 2023 0.030311% 0.086170%
Proportion - June 30, 2024 0.047438% 0.091299%
Changes - Increase (Decrease) 0.017127% 0.005129%
For the year ended June 30, 2024, the City recognized pension expense/(income) of $3,900,657 and $1,989,304 for the Safety Police Plan and the Safety Fire Plan respectivel y. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
City pension contribution subsequent to
measurement date $ 2,276,614 -$ $ 1,341, 800 -$ CalPERS Deferrals:
Difference between expected and actual
experience 623,656 20,278 341,593 11,107 Change in Assumptions 188,284 - 103,128 - Net difference between projected and
actual earnings on pension plan
inv estments 369,380 - 202,319 - Adjustment due to difference in
proportions 5,954,325 - 2,774,300 - Difference in proportionate share - 7, 121,204 - 3, 144,447 Total CalPERS Deferrals 7,135,645 7,141,482 3,421,340 3,155,554 Total 9,412,259$ 7,141,482$ 4,763,140$ 3,155,554$ Safety - Police Safety - Fire
75 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
The $2,276,614 and $1,341,800 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be reco gnized as a reduction of the n et pension liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Measurement Period
Ended June 30, Safety Police Plan Safety Fire Plan
2025 780,594 $ 359,738 $
2026 (307,086) 35,064
2027 (352,960) (80,640)
2028 (126,385) (48,376)
Total (5,837) $ 265,786 $
Net Deferred Outflows/
(inflows of Resources
Actuarial Methods and Assumptions
The collective total pension liability for the June 30, 2024 me asurement period was determined by an actuarial valuation as of June 30, 2022. The collective total pension lia bility was based on the fo llowing assumptions:
Actuarial Cost Method Entry Age Normal Cost Method
Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS’ Membership Data for al l Funds
Post Retirement Benefit
Increase
Contract COLA up to 2.00% until Purchasing Power
Protection Allowance Floor on Purchasing Power
applies, 2.3% thereafter
Actuarial Assumptions
(1) The mortality table used was developed based on CalPERS-specific data.T h et a b l e includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns , net of pension plan investment expense and inflation) are developed for each major asset class.
76 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
In determining the long-term expe cted rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years usin g 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:
Asse t Cla ss (1)
Assume d Asse t
Allocation
Real Return
Years 1 - 10 (1, 2)
Global Equiry - Cap-weighted 30.00% 4.54%
Global Equiry - 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 Corportates 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%
Total 100.00%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2022 Asset Liability Management st udy.
Discount Rate
The discount rate used to measure the total pension liability w as 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from pla n members will be made a t the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability/(Asset) to Changes in the Discount Rate
The following presents the City’s proportionate share of the ne t pension liability/(asset) of the Plan, calculated using the discount rate for each Plan, as well as what the City ’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower (5.90 percent ) or 1% point higher (7.90 percent) than the current rate:
PERS Cost Sharing Plans
Discount Rate - 1%
(5.90%)
Current Discount
Rate (6.90%)
Discount Rate +1%
(7.90%)
Safety police $ 31,993,933 $ 7,642,016 $ (12,274,428) Safety Fire 15,610,566 4,185,735 (5,158,170) 77 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 11: CALPERS RETIREMENT PLANS (CONTINUED)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net po sition is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
NOTE 12: CITY RETIREMENT PLANS
Total Pension Pension
Liability Expense/(Income)
Supplemental Retirement Plan 40,268$ 5,915$ Single Highest Year Plan 67,885 (12,908) Total 108,153$ (6,993)$
A. Supplemental Retirement Plan
General Information about the Pension Plan
Plan Description
The Supplemental Retirement Plan is a single employer defined b enefit pension plan that covers Police, Fire and Management/Confidential employees who retired prior to January 1995. This plan is currently dormant and does not issue a separate annual financial report.
Benefits Provided
The plan provides the employee t he difference between the benef it provided by the California Public Employees Retirement System (PERS) calculated under the life annuity option and the PERS benefit had the City adopted the Police Officers’ Standards and Training (POST) widows and orpha ns salary continuation plan. The plan states, “The City shall pay each retiring officer, sergeant, lieutenant, firefighter and management employee upon retirement, a monthly amount which would make up the difference for that option of which the officer will receive from PERS under Government Code Section 21330 through 21335 and what only the officer would have received while alive had the City adopted the Police Officers’ Standards and Training (POST) widows and orphans salary continuation plan. The payment shall be made to the officer only while the officer is alive and will cease upon death. Upon retirement, the right to their payment shall be reg arded as a vested pension benefit to the same extent as the individual’s retirement allowance.” The benefit is payable for the life of the employee. The benefit is subject to a 2% annual cost-of-living increase. This plan is currently dormant.
Employees Covered
Employees covered includes sworn law enforcement officers, fire and management/confidential employees who retired prior to January 1995. Therefore, the plan is dormant. The number of participants covered under the plan as of June 30, 2025, was as follows:
Retirees and beneficiaries receiving benefits
Miscellaneous 5
Total Pension Liability
The total pension liability of $40,268 for the plan is measured as of June 30, 2025 using an annual actuarial valuation dated June 30, 2025. The City is funding the plan on a pay as you go basis.
78 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: CITY RETIREMENT PLANS (CONTINUED)
Actuarial Assumptions
A summary of principal assumptions and methods used to determine the pension liability is shown below.
Valuation Date June 30, 2025
Measurement date June 30, 2025
Actuarial cost method Entry age
Pre-retirement mortality rates 2021 CalPERS Retiree Mortality f or Miscellaneous Employees Asset valuation method Fair Market Value
Inflation Rate 2.50% per year
Discount rate 5.20 % based on the Bond Buyer 20 Bond Index
The City incurred the accrued liabilities of active participants under the City’s PERS plan as of January 1995. The City’s remaining obligation is to fund the benefits for those participants who were then and are currently retired.
Change of Assumptions
In 2025, the accounting discount rate increased from 3.93 percent to 5.20 percent.
Discount Rate
The discount rate used to measure the total pension liability was based on the Bond Buyer 20 Bond Index.
Change in Total Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Assets)
(c)=(a)-(b)
Balance at: 6/30/2024 47,832 $ - $ 47,832$ Changes Recognized for the Measurement Period:
Interest on the Total Pension Liability 1,652 - 1,652 Employer Contributions - 13,479 (13,479) Benefit Payments (13,479) (13,479) - Experience (Gains)/Losses 5,251 - 5,251 Changes of Assumptions (988) - (988) Net Change (7,564) - (7,564) Balance at: 6/30/2025 40,268 $ - $ 40,268$ Increase (Decrease)
Sensitivity of the Total Pension Liability to Change in the Discount Rate
The following presents the total pension liability of the Plan, calculated using the discount rate of 5.20%, as well as what the Employer’s total pension liability would be if it w ere calculated using a discount rate that is 1% lower (4.20%) or 1% higher (6.20%) than the current rate:
1% Lower
(4.20%)
Current
Discount Rate
(5.20%)
1% Higher
(6.20%)
Total pension liability 41,144$ 40,268$ 39,439$ 79 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: CITY RETIREMENT PLANS (CONTINUED)
Pension Expense
Pension expense/(income) for fiscal year 2024-25 of $7,564 is e qual to cash payments of $13,479 less reduction in total pension liability of $5,915.
B. Single Highest Year Plan
General Information about the Pension Plan
Plan Description
The Single Highest Year Plan is a single employer defined benefit pension plan of the City. This plan was adopted effective January 1, 1990, covering Management/Confidential Employees and Non-management/Confidential Sworn Police Employees on July 1, 1990, and is for employees wh o retired prior to May 1993. The plan is known as the City Funded Single Highest Year Plan. This plan is curre ntly dormant and does not issue a separate annual financial report.
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 on ly. “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 benef it 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 benefit 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 May 1993. Therefore, the plan is dormant. The number of participants covered under the plan as of June 30, 2025, was as follows:
Retirees receiving benefits
Miscellaneous 3
Safety 2
Total 5
Total Pension Liability
The total pension liability of $67,885 for the plan is measured as of June 30, 2025 using an annual actuarial valuation dated June 30, 2025. The City is funding the plan on a pay as you go basis.
Actuarial Assumptions
A summary of principal assumptions and methods used to determin e the pension liability is shown below.
Valuation Date June 30, 2025
Measurement date June 30, 2025
Actuarial cost method: Entry age
Pre-retirement mortality rates 2021 CalPERS Retiree Mortality f or Miscellaneous Employees Asset valuation method Fair Market Value
Inflation Rate 2.50% per year
Discount rate 5.20 % based on the Bond Buyer 20 Bond Index 80 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 12: CITY RETIREMENT PLANS (CONTINUED)
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.
Change of Assumptions
In 2025, the accounting discount rate increased from 3.93 percent to 5.20 percent.
Discount Rate
The discount rate used to measure the total pension liability was based on the Bond Buyer 20 Bond Index.
Change in Total Pension Liability
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Assets
)
(c)=(a)-(b)
Balance at: June 30, 2023 97,984 $ - $ 97,984$ Changes Recognized for the Measurement Period:
Interest on the Total Pension Liability 3,383 - 3,383 Employer Contributions - 17,191 (17,191) Benefit Payments (17,191) (17,191) - Experience (Gains)/Losses (14,268) - (14,268) Changes of Assumptions (2,023) - (2,023) Net Changes During 2023-24 (30,099) - (30,099) Balance at: June 30, 2024 67,885 $ - $ 67,885$ Increase (Decrease)
Sensitivity of the Total Pension Liability to Change in the Discount Rate
The following presents the total pension liability of the Plan, calculated using the discount rate of 5.20%, as well as what the Employer’s total pension liability would be if it w ere calculated using a discount rate that is 1% lower (4.20%) or 1% higher (6.20%) than the current rate:
1% Lower
(4.20%)
Current
Discount Rate
(5.20%)
1% Higher
(6.20%)
Total pension liability 69,362$ 67,885$ 66,487$
Pension Expense
Pension expense/(income) for fiscal year 2024-25 of $30,099 is equal to cash payment of $17,191 plus increase in total pension liability of $(12,908).
C. Payable to the Pension Plan
For the Supplemental Retirement Plan and the Single Highest Year Pan, the City’s remaining obligation is to fund the benefits for those participants who are currently retired. The City has assigned $24,925 of the General Fund’s fund balance to pay future benefits.
81 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT BENEFITS PLAN
Plan Description - City of Manhattan Beach Retiree Medical Program
The City Retiree Medical Program is a Single Employer Plan that provides a fixed stipend to qualifying retirees and a contribution to all retirees enrolled in PERS medical pla n. The City of Manhattan Beach contracts with PERS to participate in the Public Employee Medical and Hospital Care Act (PEMHCA). Under this contract, both active employees and retirees are provided access to health insurance.
Benefits Provided
The following is a description of the current retiree benefit plan under the employee Memoranda of Understanding (MOU):
Firefighters
General Employees
& Non-sworn
Management Department Heads Police Officers
Benefit types prov ided Contribution of HRA Contribution of HRA Contribution of HRA Contribution of HRA Duration of benefits To age 65 To age 65 To age 65 To age 65 Required service 20 years 15 years 15 years 20 years in law enforcement ***
Minimum age 50 50 50 50
Dependent coverage n/a * n/a * n/a * n/a *
Contribution $400 per month ** $250 per month ** $400 per month fo r Department Heads
$400 per month **
* Contribution to HRA does not v ary by dependent content ** $300 per month for firefighters retiring prior to August 1, 2008. $300 for police hired before December 31, 2007. *** 10 years with the City
Employees Covered
As of the June 30, 2024 actuarial measurement date, the followi ng current and former employees were covered by the benefit terms under the PEMHCA Plan:
Inactive employees currently receing benefits payment 134 Participating active employees 286
Total 420
Contributions
The plan is financed via actuarially determined contributions deposited into a trust fund managed by PERS. PERS has dual independent capacities as a provider of medical plans and as a trustee. In its capacity as a trustee, PERS will be referred to as CERBT (California Employees’ Retire ment Benefit Trust). City payments to employees and PERS will be reimbursed by payments from CERBT. F or fiscal year 2024, the City paid $101,072 for retiree medical benefits and was reimbursed $381,988 from CERBT.
82 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2024 based on the following actuarial methods and assumptions:
Valuation Date: June 30, 2024
Actuarial Cost Method: Entry Age
Actuarial Assumptions:
Discount Rate 4.76% per year net of expenses
Inflation 2.5% per year
Salary Increase 2.75% per year
Heathcare Trend 4.0% per year
Mortality 2021 CalPERS mortality for active safety employees 2021 CalPERS mortality for active safety employees
2021 CalPERS active mortality for miscellaneous employees Retirement Rates Police:
Hired 2013 and later: 2021 CalPERS 2.7%@57 Rates for Police Employees Hired 2012 and earlier: 2021 CalPERS 3.0%@50 Rates for Police Employees Firefighters:
Hired 2013 and later: 2021 CalPERS 2.7%@57 Rates for Police Employees Hired 2012 and earlier: 2021 CalPERS 3.0%@55 Rates for Police Employees Miscellaneous:
Hired 2012 and earlier: 2021 CalPERS 2.0%@55 Rates for Miscellaneous Employees Hired 2013 and later: 2021 CalPERS 2.0%@62 Rates for Police Employees
Expected Long-Term Rate of Return
Percentage of Assumed
Asset Class Component Portfolio Gross Return
All Equities 34% 7.250%
All Fixed Income 41% 4.250%
Real Estate Investment Trusts 17% 7.250%
All Commodities 3% 7.250%
Treasury Inflation Protected Securities (TIPS) 5% 3.000%
Discount Rate
The discount rate used to measure the total OPEB liability was 4.76%. The rate used for the plan is the real rate of return expected for the plan assets plus the long term inflation assumption.
Change of Assumptions
In 2024, the accounting discount rate increased from 4.43 percent to 4.76 percent.
83 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)
Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 Measurement Date 14,386,505$ 10,853,922 $ 3,532,583 $ Changes recognized for the measurement period:
Service cost 597,707 - 597,707 Interest on total OPEB liability 637,969 882,352 (244,383) Employer contributions* - 270,207 (270,207) Benefit Payments * (631,959) (631,959) - Administrativ e expenses - (3,506) 3,506 Experience (gains)/losses 63,443 - 63,443 Changes in assumptions (619,024) - (619,024) Net changes 48,136 517,094 (468,958) Balance at June 30, 2024 Measurement Date 14,434,641$ 11,371,016 $ 3,063,625 $ * Includes $270,207 implied rate subsidy.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2024:
1% Decrease
(3.76%)
Current
Discount Rate
(4.76%)
1% Increase
(5.76%)
Net OPEB Liability 5,037,595$ 3,063,625$ 1,491,761$
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates
The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower o r one percentage point higher t han the current rate, for measurement period ended June 30, 2024:
1% Decrease
Current
Healthcare Cost
Trend Rates 1% Increase
Net OPEB Liability 1,218,222$ 3,063,625 $ 5,361,450 $
OPEB Plan Fiduciary Net Position
CERBT issues a publicly available financial report that includes financial statements and required supplementary information available on the CalPERS website under the Californ ia Employers’ Retiree B e n e f i t T r u s t ( C E R B T ) Fund.
84 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 13: POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)
OPEB Expense, Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $1,148,278. As of June 30, 2025, the City reported deferred outflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual
experience 60,241 $ (4,733,408)$
Change in assumptions 4,936,873 (780,560) Net differences between projected and actual
return on assets 661,556 -
Total 5,658,670$ (5,513,968) $
The deferred outflows and deferr ed inflows of resources related to OPEB will be recognized as expense as follows:
Year ended
June 30:
Deferred
Outflows/(Inflows)
of Resources
2026 554,973$
2027 848,813
2028 367,765
2029 311,281
2030 (677,779)
Thereafter (1,260,351)
144,702$
NOTE 14: RETIREMENT PLAN FOR PART -TIME, SEASONAL AND TEMPORARY EMPLOYEES
On June 6, 1997, the City dissolved the City-administered retir ement plan for part-time, seasonal and temporary employees and selected the Public Agency Retirement System (PARS) as the retirement program for this group.
The PARS plan is a defined contribution pension plan, which is administered by PARS. Benefits and funding requirements are determined by PARS’ governing board. All membe rs’ earnings are subject to contribution from the employee and the employer. Hi storically, the contribution rate for both employee and employer has been
3.75% of payroll. In April 2011, the City exercised its option not to pick up 50% share of the required 7.50%.
Consequently, for fiscal year ending June 30, 2025, 100% of con tribution is derived from employee deduction.
Total payroll for employees covered by this plan for the year w as $1,821,565. The amount of employee contribution was $136,489.
NOTE 15: RISK MANAGEMENT
The City is exposed to various risks of losses related to torts, theft, damage to and destruc tion of assets, errors and omissions, injuries to employees, and natural disasters. The City maintains a comprehensive risk management program to mitigate these risks, including self-insu red general liability and workers' compensation programs. For general liability, the City is self-insured for t he first $500,000 of each claim. For workers' compensation, the City is self-insured for the first $750,000 o f each claim. A contracted third-party administrator collaborates with staff to administer the claims.
85 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 15: RISK MANAGEMENT (CONTINUED)
Additionally, the City is a member of Public Risk Innovation, S olutions, and Management (PRISM), formerly known as the CSAC-Excess Insuranc e Authority, a public entity risk sharing pool. Through PRISM, the City maintains excess liability coverage up to a limit of $25,000,000 and excess workers' compensation coverage up to statutory limits. The City is al s o a m e m b e r o f P R I S M ' s c y b e r l iability program, crime coverage program, and property program, which covers "all-risk" perils, including flood (included automatically), and earthquake, which is optional.
Claims expenditures and liabilities (general and worker's compe nsation) are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonabl y estimated. These losses include an estimate of claims that have been incurred but not reported. Reserves for claims have been estimated based on actuarial valuation. Total reserves for both workers’ compensation and general liability on June 30, 2025 are as follows:
Estimated
Claims Value at
Fiscal Year End
Additional
Reserves for
Incurred But Not
Report Claims
Total Claims
Reserve
Workers' Compensation Claims $ 9,360,860 7,100,500$ 16,461,360 $ General Liability Claims 1,828,171 903,500 2,731,671 11,189,031$ 8,004,000$ 19,193,031$
The following is a summary of the changes in the claims liability over the past two fiscal years.
Beginning Ending
Balance Increase Decrease Balance
2023-2024
Workers'comp 15,354,930$ 4,477,824$ 3,953,340$ 15,879,414$ General liabilities 2,772,055 3,352,866 2,286,527 3,838,394 Total 18,126,985$ 7,830,690$ 6,239,867$ 19,717,808$ 2024-2025
Workers'comp 15,879,414$ 4,931,328$ 4,349,382$ 16,461,360$ General liabilities 3,838,394 2,003,914 3,110,637 2,731,671 Total 19,717,808$ 6,935,242$ 7,460,019$ 19,193,031$ Fiscal Year
During the past three fiscal (claims) years, none of the above programs has had settlements or judgments that exceed the City’s pooled or insured coverage. There have been n o significant reductions in pooled or insured coverages from coverage in the prior year.
PRISM has published its own annual comprehensive financial repo rt for the year ended June 30, 2024, which can be obtained at the following link:
https://www.prismrisk.gov/resources/prism-documents/financial- information/annual-comprehensive-financial-report-acfr/acfr-fy-ended-6-30-2024/ 86 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 16: JOINT VENTURES AND JOI NTLY GOVERNED ORGANIZATIONS
A. Joint Venture
South Bay Regional Public Communications Authority
The City is a member of the South Bay Regional Public Communications Authority (SBRPCA), a joint powers authority of the cities of Manhattan Beach, Gardena and Hawthorne. SBRPCA was formed October 14, 1975, for the purpose of financing a public safety communications system for the member cities. The Governing Board is composed of an elected official of each member city. An executi ve committee is composed of the city managers of each member city. The City’s participation percentage at June 30, 2025, was 22.85%.
Summarized audited financial information for SBRPCA at June 30, 2024*, is presented below:
Statement of Net Position
Assets
Current assets 9,986,276$
Noncurrent assets 6,660,045
Total Assets 16,646,321
Deferred Outflows of Resources 5,229,661
Liabilities
Current liabilities 549,568
Noncurrent liabilities 11,938,607
Total Liabilities 12,488,175
Deferred Inflows of Resources 2,317,166
Net Position 7,070,641$
Statement of Activ ities
Operating Revenues 14,360,147$
Operating Expenses 12,269,704
Operating income before depreciation 2,090,443
Depreciation 738,898
Operating income/loss 1,351,545
Non-operating revenues (expenses):
Interest earnings 529,944
Non operating revenues (expenses) 529,944
Change in net position 1,881,489
Net Position - June 30, 2023 5,189,152
Net Position - June 30, 2024 7,070,641$
*Most current information available. SBRPCA has issued its own separate financial statements, which are available at 4440 W. Broadway, Hawthorne, California 90250. 87 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 16: JOINT VENTURES AND JOINT LY GOVERNED ORGANIZATIONS (CONTINUED)
B. Jointly Governed Organization
Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force
The City of Manhattan Beach is a member of Los Angeles Interage ncy Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT), a joint powers authority of the polic e departments of cities and other institutions in Los Angeles County. The Organization was formed July 1, 1991, w ith the mission to promote coordinated law enforcement efforts and to addres s emerging criminal justice is sues, mainly in the areas of drug trafficking enterprise and money laundering. The Executive Council consists of 14 police chiefs and other various police officers. All financial decisions were made by the Executive Co uncil. The members received monetary distributions from the asset seizures based on their respective contribution to the effort.
Summarized audited financial information for L.A. IMPACT at June 30, 2024*, is presented below:
Statement of Net Position
Assets
Current assets 15,699,598$
Noncurrent assets 1,602,629
Total Assets 17,302,227
Liabilities
Current liabilities 2,182,279
Noncurrent liabilities 69,800
Total liabilities 2,252,079
Net Position 15,050,148$
Statement of Activ ities
Program Revenues 12,603,862$
Expenses 6,897,303
Excess of Revenues Over Expenses 5,706,559
Non operating revenues (expenses)
Investment earnings 823,423
Non operating revenues (expenses) 823,423
Change in net position 6,529,982
Net Position - June 30, 2023 8,520,166
Net Position - June 30, 2024 15,050,148$
*LA Impact has issued its own separate financial statements, which are available at 5700 S. Eastern Avenue, Commerce, California 90040.
88 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 17: COMMITMENTS AND CONTINGENCIES
Contingencies
There are certain claims and lawsuits pending against the City that seek monetary damage s. Potential liabilities due to these claims are accounted for in the Insurance Reserve Fund.
Construction Commitments
The following material construction commitments existed as of June 30, 2025:
Project Title Contract Amount
Expenditure to
date as of
June 30, 2025
Remaining
Commitments
MB Automated Traffic Sync 17,703,536 1,376,410 16,327,126 Voorhees Lift Station & Upgrades 5,417,326 847,447 4,569,879 TMDL Trash Treatment Project 4,040,475 1,773,789 2,266,686 Annual Street Resurfacing 1,618,739 249,034 1,369,705 MBB E/B LT At Aviation Blvd 873,643 132,290 741,353 Peck Ground LVL Resivoir Replacement 38,737,185 38,223,707 513,477 Pacific Lift Station & Upgrades 761,580 250,483 511,097
NOTE 18: FUND BALANCE
At June 30, 2025, the governmental funds report the following fund balance classifications:
Total Total
Capital Nonmajor Governmental
General Improvement Funds Funds
Nonspendable
Notes and loans receivable 25,688$ -$ -$ 25,688$ Inventories 11,366 - - 11,366 Prepaid costs 1,031,544 - - 1,031,544 Total nonspendable 1,068,598 - - 1,068,598 Restricted
Public safety - - 712,311 712,311 Recreation - - 1,357,874 1,357,874 Public works - - 331,061 331,061 Capital projects - - 12,526,173 12,526,173 Pension benefits 4,711,798 - - 4,711,798 Debt service 1,059,081 - - 1,059,081 Total restricted 5,770,879 - 14,927,419 20,698,298 Committed
Capital Projects - 13,684,973 243,873 13,928,846 Total committed - 13,684,973 243,873 13,928,846 Assigned
Assigned for City retirement plans 24,925 - - 24,925 Total assigned 24,925 - - 24,925 Unassigned 23,617,324 - - 23,617,324 Total fund balances (deficits) 30,481,726$ 13,684,973$ 15,171,292$ 59,337,991$ 89 CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Financial Statements
For the Year Ended June 30, 2025
NOTE 19: NET INVESTMENTS IN CAPITAL ASSETS
The computation of Net Investments in Capital Assets is as follows:
Government
Activ ities
Business-Type
Activ ities
Total Capital Assets 170,566,783 $ 103,343,525 $
Long-term debt
Marine Avenue Park Refunding COP Series 2016 (3,370,000) - 2013 Police & Fire Facility Refunding COP (4,355,000) - 2021 Fire Station No. 2 COP (6,935,000) -
2021 Refunding COPs - (4,025,000) Lease liability (8,356,189) -
SBITA liability (995,443) -
Deferred charge on refunding 209,220 -
Bond premium/discount (1,469,658) (768,701)
145,294,713$ 98,549,824 $
NOTE 20: NET POSITION AND FUND BALANCES RESTATEMENT
During fiscal year 2025, changes in accounting principle resulted in adjustments to and restatements of beginning net position and fund net position, as follows:
June 30, 2024 Changes in
As Previously Accounting June 30, 2024
Reported Principle As Restated
Government-wide
Gov ernmental activ ities 112,558,918$ (1,097,395) $ 111,461,523 $ Business-type activities 132,373,836 (97,137) 132,276,699 Total government-wide 244,932,754$ (1,194,532) $ 243,738,222 $ Proprietary funds
Major funds
Water 75,214,014 $ (10,662) $ 75,203,352$
Wastewater 28,218,366 (47,601) 28,170,765 Parking 18,101,216 (18,382) 18,082,834 Nonmajor enterprise 10,840,240 (20,492) 10,819,748 Internal service funds 7,451,662 (334,727) 7,116,935 Total proprietary funds 139,825,498$ (431,864) $ 139,393,634$
Restatements are the result of implementation of GASB 101.
NOTE 21: SUBSEQUENT EVENTS
In August 2025, the City issued $12,495,000 of Series 2025A and $3,275,000 of Series 2025B Certificates of Participation. The 2025A Certificates were issued to reimburse the General Fund balance for the purchase of property at 400 Manhattan Beach Boulevard. The 2025B Certifica tes were issued to finance the purchase of public safety radio communications equipment. The proceeds of the Certificates also were applied to pay certain costs of issuance incurred in connection with the Certificates. 90 REQUIRED SUPPLEMENTARY
INFORMATION
91 92
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual General Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 72,396,248$ 73,899,899$ 75,339,632$ 1,439,733$ Licenses and permits 4,025,191 4,025,191 4,421,097 395,906 Intergovernmental 256,000 712,853 747,194 34,341 Charges for services 13,834,519 14,309,519 15,547,009 1,237,490 Use of money and property 5,248,600 5,248,600 7,459,748 2,211,148 Fines and forfeitures 2,401,397 2,401,397 2,480,865 79,468 Miscellaneous 1,137,388 1,137,388 1,282,371 144,983 Total revenues 99,299,343 101,734,847 107,277,916 5,543,069
EXPENDITURES
Current:
General government 19,575,883 20,158,685 18,309,285 1,849,400 Public safety 52,339,573 54,724,504 54,368,997 355,507 Culture and recreation 9,948,466 10,066,226 9,962,626 103,600 Public works 11,895,805 12,139,949 11,921,311 218,638 Capital outlay 315,650 296,534 294,248 2,286 Debt service:
Principal 3,618,199 3,629,315 5,722,147 (2,092,832) Interest and fiscal charges 2,005,306 2,027,800 2,234,072 (206,272) Trustee fees and bond issuance cost 1,600 1,600 1,600 - Total expenditures 99,700,482 103,044,613 102,814,286 230,327 Excess (deficiency) of revenues
over (under) expenditures (401,139) (1,309,766) 4,463,630 5,773,396
OTHER FINANCING SOURCES (USES)
Transfers In - - 230,407 230,407 Transfers Out (13,134) (13,134) (15,940,120) (15,926,986) Lease and subscriptions financing - - 1,346,048 1,346,048 Total other financing sources (uses) (13,134) (13,134) (14,363,665) (14,350,531) Net change in fund balances (414,273)$ (1,322,900)$ (9,900,035) (8,577,135)$ Fund balances (deficit)-beginning 40,381,761
Fund balances (deficit)-ending 30,481,726$
93 CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Miscellaneous Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL PENSION LIABILITY
Service cost 3,558,852$ 3,134,299$ 2,943,841$ 2,650,267$ Interest on total pension liability 9,939,907 9,482,836 8,978,056 8,598,669 Changes of benefit terms - 186,466 1,093,755 - Changes of assumptions - - 4,573,133 - Difference between expected and actual experience 380,620 1,524,258 (1,315,243) (820,321) Benefit payments, including refunds of employee
contributions (6,731,717) (6,439,916) (6,384,471) (5,398,971) Net change in total pension liability 7,147,662 7,887,943 9,889,071 5,029,644 Total pension liability-beginning 145,262,433 137,374,490 127,485,419 122,455,775 Total pension liability-ending (a) 152,410,095 145,262,433 137,374,490 127,485,419
PLAN FIDUCIARY NET POSITION
Contributions-employer 2,205,544 1,976,642 1,624,870 31,975,816 Contributions-employee 1,650,807 1,542,323 1,286,707 1,231,319 Net investment income 12,685,001 7,877,280 (10,719,243) 22,191,353 Benefit payments, including refunds of employee
contributions (6,731,717) (6,439,916) (6,384,471) (5,398,971) Net plan to plan resource movement (12,726) - - - Administrative expense (109,418) (95,308) (89,635) (93,884) Other miscellaneous income/(expense) - - - - Net change in fiduciary net position 9,687,491 4,861,021 (14,281,772) 49,905,633 Plan fiduciary net position-beginning 134,468,965 129,607,944 143,889,716 93,984,083 Plan fiduciary net position-ending (b) 144,156,456 134,468,965 129,607,944 143,889,716 Net pension liability/(asset) (a) - (b) 8,253,639$ 10,793,468$ 7,766,546$ (16,404,297)$ Plan fiduciary net position as a percentage of the
total pension liability 94.6% 92.6% 94.3% 112.9%
Covered payroll 18,375,691$ 18,689,916$ 17,388,313$ 17,209,527$ Plan net pension liability/(asset) as a percentage of
covered payroll 44.9% 57.8% 44.7% -95.3%
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
Benefit Changes : The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes of Assumptions: There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows.
In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 94 2021 2020 2019 2018 2017 2016
6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 2,737,868$ 2,657,779$ 2,639,954$ 2,582,619$ 2,116,750$ 1,906,947$ 8,237,478 7,803,956 7,282,132 6,931,655 6,725,647 6,365,282 - - - - - - - - 11,137 5,953,464 - (450,327) 261,490 1,833,076 (577,483) (2,203,443) (125,272) (1,610,461) (4,720,240) (4,679,793) (4,251,920) (3,897,657) (3,694,517) (3,387,918) 6,516,596 7,615,018 5,103,820 9,366,638 5,022,608 2,823,523 115,939,179 108,324,161 103,220,341 93,853,703 88,831,095 86,007,572 122,455,775 115,939,179 108,324,161 103,220,341 93,853,703 88,831,095 3,088,142 2,699,124 2,257,840 2,139,788 1,856,633 1,619,438 1,148,119 1,183,069 1,194,936 1,142,808 1,110,014 986,936 4,500,278 5,590,075 6,733,944 8,057,534 357,760 1,618,145 (4,720,240) (4,679,793) (4,251,920) (3,897,657) (3,694,517) (3,387,918) - - (198) - (388) - (127,012) (60,918) (124,333) (106,973) (44,409) (82,036) - 199 (236,111) - - - 3,889,287 4,731,756 5,574,158 7,335,500 (414,907) 754,565 90,094,796 85,363,040 79,788,882 72,453,382 72,868,289 72,113,724 93,984,083 90,094,796 85,363,040 79,788,882 72,453,382 72,868,289 28,471,692$ 25,844,383$ 22,961,121$ 23,431,459$ 21,400,321$ 15,962,806$
76.7% 77.7% 78.8% 77.3% 77.2% 82.0%
17,472,037$ 16,866,425$ 16,557,666$ 16,051,083$ 14,974,179$ 13,348,365$ 163.0% 153.2% 138.7% 146.0% 142.9% 119.6%
95 CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Pension Plan - Supplemental Retirement Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022
Measurement Date 6/30/2025 6/30/2024 6/30/2023 6/30/2022
TOTAL PENSION LIABILITY
Interest on total pension liability 1,652$ 1,617$ 1,743$ 1,143$ Changes of assumptions (988) (353) (3,108) 7,476 Difference between expected and actual experience 5,251 11,535 11,270 (2,564) Benefit payments, including refunds of employee
contributions (13,479) (13,898) (13,359) (12,889) Net change in total pension liability (7,564) (1,099) (3,454) (6,834) Total pension liability-beginning 47,832 48,931 52,385 59,219 Total pension liability-ending (a) 40,268 47,832 48,931 52,385
PLAN FIDUCIARY NET POSITION
Contributions-employer 13,479 13,898 13,359 12,889 Net investment income - - - - Benefit payments, including refunds of employee
contributions (13,479) (13,898) (13,359) (12,889) Net change in fiduciary net position - - - - Plan fiduciary net position-beginning - - - - Restatement - - - - Plan fiduciary net position-ending (b) - - - - Net pension liability/(asset) (a) - (b) 40,268$ 47,832$ 48,931$ 52,385$ Plan fiduciary net position as a percentage of the
total pension liability 0.0% 0.0% 0.0% 0.0%
Covered payroll N/A N/A N/A N/A
Plan net pension liability/(asset) as a percentage of
covered payroll N/A N/A N/A N/A
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
In fiscal year 2024-25, the discount rate was changed from 3.93% to 5.20%.
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. 96 2021 2020 2019 2018 2017 2016
6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 1,787$ 4,057$ 4,045$ 4,837$ (552)$ 4,465$ 62 5,916 2,027 - - - (34,482) 6,826 18,576 8,685 35,649 9,609 (14,382) (22,327) (22,125) (21,690) (21,340) (21,728) (47,015) (5,528) 2,523 (8,168) 13,757 (7,654) 106,234 111,762 109,239 117,407 103,650 111,304 59,219 106,234 111,762 109,239 117,407 103,650 14,382 22,327 27,773 - - - - - 1,024 496 (552) 4,465 (14,382) (22,327) (22,125) (21,690) (21,340) (21,728) - - 6,672 (21,194) (21,892) (17,263) 32,344 32,344 25,672 46,866 68,758 86,021 (32,344) - - - - - - 32,344 32,344 25,672 46,866 68,758 59,219$ 73,890$ 79,418$ 83,567$ 70,541$ 34,892$
0.0% 30.4% 28.9% 23.5% 39.9% 66.3%
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
97 98
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Investment Returns
Pension Plan - Supplemental Retirement Plan
As of June 30, for the Last Ten Fiscal Years
Fiscal Year Net Money-Weighted
Ending June 30, Rate of Return
2025 5.20%
2024 3.93%
2023 3.65%
2022 3.54%
2021 2.16%
2020 2.20%
2019 3.50%
2018 4.12%
2017 3.49%
2016 3.60%
99 CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Changes in Net Pension Liability and Related Ratios Pension Plan - Single Highest Year Plan
As of June 30, for the Last Ten Fiscal Years
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL PENSION LIABILITY
Interest on total pension liability 3,383$ 3,311$ 3,680$ 2,421$ Changes of assumptions (2,023) (722) (6,560) (5,433) Difference between expected and actual experience (14,268) 13,596 9,222 15,842 Benefit payments, including refunds of employee
contributions (17,191) (21,490) (21,068) (20,304) Net change in total pension liability (30,099) (5,305) (14,726) (7,474) Total pension liability-beginning 97,984 103,289 118,015 125,489 Total pension liability-ending (a) 67,885 97,984 103,289 118,015
PLAN FIDUCIARY NET POSITION
Contributions-employer 17,191 21,490 23,360 20,304 Benefit payments, including refunds of employee
contributions (17,191) (21,490) (23,360) (20,304) Net change in fiduciary net position - - - - Plan fiduciary net position-beginning - - - - Restatement - - - - Plan fiduciary net position-ending (b) - - - - Net pension liability/(asset) (a) - (b) 67,885$ 97,984$ 103,289$ 118,015$ Plan fiduciary net position as a percentage of the
total pension liability 0.0% 0.0% 0.0% 0.0%
Covered payroll N/A N/A N/A N/A
Plan net pension liability/(asset) as a percentage of
covered payroll N/A N/A N/A N/A
Notes to Schedule of Changes in the Net Pension Liability and Related Ratios:
In fiscal year 2024-25, the discount rate was changed from 3.93% to 5.20%.
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.
100
2021 2020 2019 2018 2017 2016
6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 5,975$ 8,785$ 10,663$ 13,871$ (1,639)$ 13,610$ 207 15,460 6,053 - - - (138,309) 17,838 41,951 (12,652) 94,614 19,167 (25,050) (51,473) (50,694) (53,805) (52,928) (51,598) (157,177) (9,390) 7,973 (52,586) 40,047 (18,821) 282,666 292,056 284,083 336,669 296,622 315,443 125,489 282,666 292,056 284,083 336,669 296,622 25,050 51,473 72,227 - - - (25,050) (51,473) (46,005) (52,189) (54,567) (37,988) - - 26,222 (52,189) (54,567) (37,988) 118,394 118,394 92,172 144,361 198,928 236,916 (118,394) - - - - - - 118,394 118,394 92,172 144,361 198,928 125,489$ 164,272$ 173,662$ 191,911$ 192,308$ 97,694$
0.0% 41.9% 40.5% 32.4% 42.9% 67.1%
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
101
102
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Investment Returns
Pension Plan - Single Highest Year Plan
As of June 30, for the Last Ten Fiscal Years
Fiscal Year Net Money-Weighted
Ending June 30, Rate of Return
2025 5.20%
2024 3.93%
2023 3.65%
2022 3.54%
2021 2.16%
2020 2.20%
2019 3.50%
2018 4.12%
2017 3.49%
2016 3.60%
103
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedules of Proportationate Share of Net Pension Liability As of June 30, for the Last Ten Fiscal Years
Proportionate Share Plan's Fiduciary
Proportion of the Proportionate of the Net Pension Net Position as a Reporting Date 1 Net Pension Share of Net Liability as a % of % of the Total as of June 30, Liability Pension Liability Covered Payroll Covered Payroll Pension Liability 2025 0.1387% 11,827,751$ 14,520,026$ 81.5% 94.9% 2024 0.1165% 13,348,393 14,771,765 90.4% 94.7% 2023 0.0680% 7,851,465 13,651,265 57.5% 96.7% 2022 -1.0111% (35,484,453) 13,731,032 -258.4% 115.6% 2021 0.9278% 61,811,652 13,904,770 444.5% 71.9% 2020 0.8885% 55,463,474 13,238,294 419.0% 73.9% 2019 0.8844% 51,890,006 13,377,912 387.9% 75.3% 2018 0.7380% 51,004,452 13,476,008 378.5% 73.3% 2017 0.8545% 44,229,612 13,396,233 330.2% 74.1% 2016 0.8167% 33,649,892 12,509,404 269.0% 78.3% Notes to Schedule of Proportionate Share of the Net Pension Liability:
1 The proportions and proportionate share of the net pension liability are measured as of one year behind the reporting date. Refer to notes to basic financial statements.
Safety Plan
Benefit Changes : There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs.Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors.Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes of Assumptions : There were no assumption changes in 2023 or 2024. Effective with the June 30, 2021, valuation date (June 30, 2022, measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017, through June 30, 2021, and 7.65% for measurement dates June 30, 2015, through June 30, 2016. 104
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedules of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
Covered/ Contribution as a
Fiscal Year Actuarially Actual Contribution Covered- % of Covered/ Ending Determined Employer Deficiency Employee Covered Employee June 30, Contribution Contributions (Excess) Payroll Payroll 2025 2,205,544$ 2,372,832$ (167,288)$ 21,425,959$ 11.1% 2024 2,214,398 2,214,398 18,375,691 12.1% 2023 1,918,178 1,918,178 - 18,689,916 10.3% 2022 1,624,870 1,624,870 - 17,388,313 9.3% 2021 3,428,883 31,975,816 (28,546,933) 17,209,527 185.8% 2020 3,088,142 3,088,142 - 17,472,037 17.7% 2019 2,699,124 2,699,124 - 16,866,425 16.0% 2018 2,257,840 2,257,840 - 16,557,666 13.6% 2017 2,139,788 2,139,788 - 16,051,083 13.3% 2016 1,856,633 1,856,633 - 14,974,179 12.4% 2025 -$ 13,479$ (13,479)$ N/A N/A 2024 - 13,898 (13,898) N/A N/A 2023 - 13,359 (13,359) N/A N/A 2022 - 12,889 (12,889) N/A N/A 2021 - - - N/A N/A 2020 - - - N/A N/A 2019 - - - N/A N/A 2018 - - - N/A N/A 2017 - - - N/A N/A 2016 - - - N/A N/A 2025 -$ 17,191$ (17,191)$ N/A N/A 2024 - 21,490 (21,490) N/A N/A 2023 - 23,360 (23,360) N/A N/A 2022 - 20,304 (20,304) N/A N/A 2021 - - - N/A N/A 2020 - - - N/A N/A 2019 - - - N/A N/A 2018 - - - N/A N/A 2017 - - - N/A N/A 2016 - - - N/A N/A 2025 3,618,414$ 3,618,414$ -$ 14,014,046$ 25.8% 2024 3,410,036 3,410,036 - 14,520,026 23.5% 2023 3,085,036 3,085,036 - 14,771,765 20.9% 2022 2,798,477 2,798,477 - 13,651,265 20.5% 2021 6,572,770 68,788,953 (62,216,183) 13,731,032 501.0% 2020 5,997,853 5,997,853 - 13,904,770 43.1% 2019 5,071,642 5,071,642 - 13,238,294 38.3% 2018 4,413,119 4,413,119 - 13,377,912 33.0% 2017 4,035,127 4,035,127 - 13,476,008 29.9% 2016 4,000,319 4,000,319 - 13,396,233 29.9% 2025 -$ -$ - 37,345,127$ 0.0% 2024 - - - 35,117,049 0.0% 2023 - - - 33,042,483 0.0% 2022 - - - 31,281,530 0.0% 2021 - - - 31,108,248 0.0% 2020 - - - 30,039,928 0.0% 2019 - - - 28,955,206 0.0% 2018 - - - 28,350,135 0.0% Miscellaneous Agent, Multiple-Employer Pension Plan
Supplemental Retirement Pension Plan
Single Employer OPEB Plan
Single Highest Year Pension Plan
Safety Cost-Sharing, Multiple-Employer Pension Plan
105
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Changes in Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years 1
2025 2024 2023 2022
Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021
TOTAL OPEB LIABILITY
Service cost 597,707$ 696,531$ 680,762$ 912,539$ Interest on total pension liability 637,969 745,715 721,654 741,118 Changes of benefit terms - - (5,588) 8,110 Changes of assumptions (619,024) (226,367) (40,688) (47,483) Difference between expected and actual experience 63,443 (4,382,036) - (2,139,728) Benefit payments, including refunds of employee
contributions (631,959) (827,434) (826,360) (827,450) Net change in total OPEB liability 48,136 (3,993,591) 529,780 (1,352,894) Total OPEB liability-beginning 14,386,505 18,380,096 17,850,316 19,203,210 Total OPEB liability-ending (a) 14,434,641 14,386,505 18,380,096 17,850,316
PLAN FIDUCIARY NET POSITION
Contributions-employer 270,207 101,072 826,360 500,355 Contributions-employee - - - - Net investment income 882,352 398,243 (1,602,871) 2,170,346 Benefit payments, including refunds of employee
contributions (631,959) (827,434) (826,360) (827,450) Net plan to plan resource movement - - - - Administrative expense (3,506) (3,204) (3,246) (4,002) Other miscellaneous income/(expense) - - - - Net change in fiduciary net position 517,094 (331,323) (1,606,117) 1,839,249 Plan fiduciary net position-beginning 10,853,922 11,185,245 12,791,362 10,952,113 Plan fiduciary net position-ending (b) 11,371,016 10,853,922 11,185,245 12,791,362 Net OPEB liability/(asset) (a) - (b) 3,063,625$ 3,532,583$ 7,194,851$ 5,058,954$ Plan fiduciary net position as a percentage of the
total OPEB liability 78.8% 75.4% 60.9% 71.7%
Covered-employee payroll 35,117,049$ 33,042,483$ 31,281,530$ 31,108,248$ Plan net OPEB liability/(asset) as a percentage of
covered-employee payroll 8.7% 10.7% 23.0% 16.3%
Notes to Schedule of Changes in the Net OPEB Liability and Related Ratios:
Benefit Changes: None
Changes of Assumptions: None
1 Fiscal year 2018 was the first year of GASB Statement No. 75 implementation; therefore only eight years are shown. 106
2021 2020 2019 2018
6/30/2020 6/30/2019 6/30/2018 6/30/2017
860,600$ 162,042$ 157,705$ 153,484$ 726,498 405,961 389,029 373,003 - 14,816 - - 301,994 11,785,934 - - (67,563) (217,943) - - (768,497) (315,517) (276,109) (292,220) 1,053,032 11,835,293 270,625 234,267 18,150,178 6,314,885 6,044,260 5,809,993 19,203,210 18,150,178 6,314,885 6,044,260 458,552 - - - - - - - 579,074 723,910 620,328 696,310 (768,497) (315,517) (276,109) (292,220) - - - - (5,285) (2,217) (18,413) (5,052) - - - - 263,844 406,176 325,806 399,038 10,688,269 10,282,093 9,956,287 9,557,249 10,952,113 10,688,269 10,282,093 9,956,287 8,251,097$ 7,461,909$ (3,967,208)$ (3,912,027)$
57.0% 58.9% 162.8% 164.7%
30,039,928$ 28,955,206$ 28,350,135$ 27,942,810$
27.5% 25.8% -14.0% -14.0%
107
108
CITY OF MANHATTAN BEACH, CALIFORNIA
Notes to the Required Supplementary Information
For the Year Ended June 30, 2025
NOTE 1: BUDGETARY COMPARISON INFORMATION
A. General Budget Policies
The operating budget serves as the annual financial plan for th e City and serves as the policy document of the City Council for implementing Council goals and objectives. The budget provides the staff the resources necessary to accomplish City Council determined service levels.
The City Manager annually will prepare and present a proposed operating budget to the City Council no later than the second regular Council meeting in May of each year; and Cou ncil will adopt said budget no later than June 30 of each year. Funds may not be expended or encumbered for the following fiscal year until the budget has been adopted by the City Council.
The City’s annual budget will be presented by department, with a logical breakdown of programs and proposed expenses. The budget document will also summarize expenditures at the personnel, operating and maintenance, and capital levels.
Where practical, the City's annual budget will include measures of workload, efficiency, and effectiveness.
B. Budgetary Control and Accountability
Budget control is maintained at the departmental level. The City Manager has the authority to approve appropriation transfers between programs or departments. In no case may total expenditures of a particular fund exceed that which is appropriated by the City Council without a budget amen dment. Amendments to the budget are approved by the City Council with the exception of the appropriation and transfer of funds from employee leave reserves to a specific department’s program budget to cover unplanned customary termination leave expenditures within a given year. Such amendments may be approved by the City Manager.
Budget accountability rests primarily with the operating departments of the City.
C. Basis of Budgeting
Budgets are adopted on a basis con sistent with accounting princ iples generally accepted in the United States of America and are used as a management control device.
D. Excess of Expenditures over Appropriations
Excess expenditures over appropriations were as follows:
Expenditures Appropriations Excess
General Fund
Principal 5,722,147 3,629,315 2,092,832
Interest and fiscal charges 2,234,072 2,027,800 206,272 109
110
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
& SCHEDULES
111
112
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
& SCHEDULES
113
114
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116
117
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments 164,482$ 5,742,661$ 224,742$ 521,027$ Receivables (net of allowance for uncollectible):
Accounts 9,054 - - - Due from other governments - 254,477 - - Grants - 124,549 - - Total assets 173,536 6,121,687 224,742 521,027
LIABILITIES
Accounts payable 173,536 597,437 - 30,073 Accrued liabilities - 21,808 - - Accrued payroll - - 3,385 - Deposits payable - - - - Unearned revenues - - - - Total liabilities 173,536 619,245 3,385 30,073
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 124,549 - - Total deferred inflows of resources - 124,549 - -
FUND BALANCES (DEFICITS)
Restricted - 5,377,893 221,357 490,954 Committed - - - - Total fund balances (deficits) - 5,377,893 221,357 490,954 Total liabilities, deferred inflows of resources,
and fund balances (deficits) 173,536$ 6,121,687$ 224,742$ 521,027$ Street
Lighting and
Landscape Gas Tax
Asset
Forfeiture
Public Safety
Grants
Special Revenue Funds
118
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Due from other governments
Grants
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Accrued payroll
Deposits payable
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Committed
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
(Continued)
1,392,512$ 1,849,296$ 340,136$ 2,396,864$ 416 - - - - - 11,903 - - 1,838,948 - 166,498 1,392,928 3,688,244 352,039 2,563,362 5,529 10,406 9,075 529,726 - - - - 29,525 - - - - - - - - - - - 35,054 10,406 9,075 529,726 - 1,838,948 11,903 166,498 - 1,838,948 11,903 166,498 1,357,874 1,838,890 331,061 1,867,138 - - - - 1,357,874 1,838,890 331,061 1,867,138 1,392,928$ 3,688,244$ 352,039$ 2,563,362$ Special Revenue Funds
Proposition A Proposition C AB 2766 Measure R
119
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Due from other governments
Grants
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Accrued payroll
Deposits payable
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Committed
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Capital
Projects
Funds
1,159,910$ 1,490,118$ 2$ 465,453$ - - - - - - - - 127,685 644,170 - - 1,287,595 2,134,288 2 465,453 90,342 154,768 - - 31,554 2,000 - 221,580 - - - - - - - - - 249,808 2 - 121,896 406,576 2 221,580 127,685 644,170 - - 127,685 644,170 - - 1,038,014 1,083,542 - - - - - 243,873 1,038,014 1,083,542 - 243,873 1,287,595$ 2,134,288$ 2$ 465,453$ Bond
Construction Grants Measure M Measure W
Special Revenue Funds
120
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Receivables (net of allowance for uncollectible):
Accounts
Due from other governments
Grants
Total assets
LIABILITIES
Accounts payable
Accrued liabilities
Accrued payroll
Deposits payable
Unearned revenues
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total deferred inflows of resources
FUND BALANCES (DEFICITS)
Restricted
Committed
Total fund balances (deficits)
Total liabilities, deferred inflows of resources,
and fund balances (deficits)
Capital
Projects
Funds
Total
Nonmajor
Funds
1,322,437$ 17,069,640$
- 9,470
- 266,380
- 2,901,850
1,322,437 20,247,340
- 1,600,892
- 276,942
- 32,910
1,741 1,741
- 249,810
1,741 2,162,295
- 2,913,753
- 2,913,753
1,320,696 14,927,419
- 243,873
1,320,696 15,171,292
1,322,437$ 20,247,340$
Underground
Assessment
District
121
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes 374,051$ -$ -$ -$ Intergovernmental - 1,948,462 52,451 194,664 Charges for services - - - - Use of money and property - 259,598 12,497 30,195 Miscellaneous 1,280 - - - Total revenues 375,331 2,208,060 64,948 224,859
EXPENDITURES
Current:
General governement - - - - Public safety - - 118,336 238,060 Culture and recreation - - - - Public works 650,689 61,540 - - Capital outlay - 1,045,648 - - Debt service:
Principal - - - - Interest and fiscal charges - - - - Total expenditures 650,689 1,107,188 118,336 238,060 Excess (deficiency) of revenues
over (under) expenditures (275,358) 1,100,872 (53,388) (13,201)
OTHER FINANCING SOURCES (USES)
Transfers in 258,535 - - - Transfers out (5,020) - - - Total other financing sources (uses) 253,515 - - - Net change in fund balances (21,843) 1,100,872 (53,388) (13,201) Fund balances (deficit)-beginning 21,843 4,277,021 274,745 504,155 Fund balances (deficit)-ending -$ 5,377,893$ 221,357$ 490,954$ Street
Lighting and
Landscape Gas Tax
Asset
Forfeiture
Public Safety
Grants
Special Revenue Funds
122
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES
Current:
General governement
Public safety
Culture and recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
(Continued)
899,568$ 746,167$ -$ 559,523$ 366,957 85,456 45,211 35,136 2,313 - - - 62,612 85,946 16,575 122,862 - - - - 1,331,450 917,569 61,786 717,521 85,364 - - - - - - - 624,711 - - - - 3,099 672 23,321 - 195,827 10,616 672,289 18,956 - - - 10,989 - - - 740,020 198,926 11,288 695,610 591,430 718,643 50,498 21,911 - - - 8,350 (407,731) - - - (407,731) - - 8,350 183,699 718,643 50,498 30,261 1,174,175 1,120,247 280,563 1,836,877 1,357,874$ 1,838,890$ 331,061$ 1,867,138$ Special Revenue Funds
Proposition A Proposition C AB 2766 Measure R
123
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES
Current:
General governement
Public safety
Culture and recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Capital
Projects
Funds
633,921$ 409,784$ -$ -$ 180,619 264,185 177,490 - - - - - 68,939 109,398 - 48,721 - - - - 883,479 783,367 177,490 48,721 6,000 - - - - - - - - - - - 71,339 54,005 - - 816,261 971,386 177,490 - -
- - - - - - - - 893,600 1,025,391 177,490 -
(10,121) (242,024) - 48,721 - - - - - - - - - - - - (10,121) (242,024) - 48,721 1,048,135 1,325,566 - 195,152 1,038,014$ 1,083,542$ -$ 243,873$ Grants
Special Revenue Funds
Measure M Measure W
Bond
Construction
124
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes
Intergovernmental
Charges for services
Use of money and property
Miscellaneous
Total revenues
EXPENDITURES
Current:
General governement
Public safety
Culture and recreation
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit)-beginning
Fund balances (deficit)-ending
Capital
Projects
Funds
Total
Nonmajor
Funds
-$ 3,623,014$
- 3,350,631
- 2,313
101,126 918,469
37,582 38,862
138,708 7,933,289
- 91,364
- 356,396
- 624,711
262,705 1,127,370
- 3,889,517
- 18,956
- 10,989
262,705 6,119,303
(123,997) 1,813,986
- 266,885
- (412,751)
- (145,866)
(123,997) 1,668,120
1,444,693 13,503,172
1,320,696$ 15,171,292$
Underground
Assessment
District
125
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Street Lighting and Landscape Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 377,468$ 377,468$ 374,051$ (3,417)$ Miscellaneous - - 1,280 1,280 Total revenues 377,468 377,468 375,331 (2,137)
EXPENDITURES
Current:
Public works 704,331 722,260 650,689 71,571 Capital outlay - 3,913 - 3,913 Total expenditures 704,331 726,173 650,689 75,484 Excess (deficiency) of revenues
over (under) expenditures (326,863) (348,705) (275,358) 73,347
OTHER FINANCING SOURCES (USES)
Transfers In 13,517 13,517 258,535 245,018 Transfers Out - - (5,020) (5,020) Total other financing sources (uses) 13,517 13,517 253,515 239,998 Net change in fund balances (313,346)$ (335,188)$ (21,843) 313,345$ Fund balances (deficit)-beginning 21,843
Fund balances (deficit)-ending -$
126
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Gas Tax Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 1,913,943$ 2,060,844$ 1,948,462$ (112,382)$ Use of money and property 22,000 22,000 259,598 237,598 Total revenues 1,935,943 2,082,844 2,208,060 125,216
EXPENDITURES
Current:
Public works 60,138 60,138 61,540 (1,402) Capital outlay 2,015,000 5,606,289 1,045,648 4,560,641 Total expenditures 2,075,138 5,666,427 1,107,188 4,559,239 Net change in fund balances (139,195)$ (3,583,582)$ 1,100,872 4,684,454$ Fund balances (deficit)-beginning 4,277,021
Fund balances (deficit)-ending 5,377,893$
127
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Asset Forfeiture Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 40,000$ 40,000$ 52,451$ 12,451$ Use of money and property 1,800 1,800 12,497 10,697 Total revenues 41,800 41,800 64,948 23,148
EXPENDITURES
Current:
Public safety 78,000 148,000 118,336 29,664 Total expenditures 78,000 148,000 118,336 29,664 Net change in fund balances (36,200)$ (106,200)$ (53,388) 52,812$ Fund balances (deficit)-beginning 274,745
Fund balances (deficit)-ending 221,357$
128
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Public Safety Grants Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 185,000$ 185,000$ 194,664$ 9,664$ Use of money and property 4,000 4,000 30,195 26,195 Total revenues 189,000 189,000 224,859 35,859
EXPENDITURES
Current:
Public safety 215,000 373,032 238,060 134,972 Total expenditures 215,000 373,032 238,060 134,972 Net change in fund balances (26,000)$ (184,032)$ (13,201) 170,831$ Fund balances (deficit)-beginning 504,155
Fund balances (deficit)-ending 490,954$
129
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Proposition A Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 964,294$ 964,294$ 899,568$ (64,726)$ Intergovernmental - - 366,957 366,957 Charges for services 3,800 3,800 2,313 (1,487) Use of money and property 3,000 3,000 62,612 59,612 Miscellaneous 17,500 17,500 - (17,500) Total revenues 988,594 988,594 1,331,450 342,856
EXPENDITURES
Current:
Culture and recreation 741,634 741,634 624,711 116,923 Capital outlay - 407,731 - 407,731 Debt service:
Principal 17,589 17,589 18,956 (1,367) Interest and fiscal charges 10,194 10,194 10,989 (795) Total expenditures 769,417 1,276,148 740,020 536,128 Excess (deficiency) of revenues
over (under) expenditures 219,177 (287,554) 591,430 878,984
OTHER FINANCING SOURCES (USES)
Transfers Out - - (407,731) (407,731) Total other financing sources (uses) - - (407,731) (407,731) Net change in fund balances 219,177$ (287,554)$ 183,699 471,253$ Fund balances (deficit)-beginning 1,174,175
Fund balances (deficit)-ending 1,357,874$
130
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Proposition C Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 799,856$ 799,856$ 746,167$ (53,689)$ Intergovernmental - 7,027,495 85,456 (6,942,039) Use of money and property 3,000 3,000 85,946 82,946 Total revenues 802,856 7,830,351 917,569 (6,912,782)
EXPENDITURES
Current:
Public works 60,138 60,138 3,099 57,039 Capital outlay 1,000,000 7,660,290 195,827 7,464,463 Total expenditures 1,060,138 7,720,428 198,926 7,521,502 Net change in fund balances (257,282)$ 109,923$ 718,643 608,720$ Fund balances (deficit)-beginning 1,120,247
Fund balances (deficit)-ending 1,838,890$
131
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual AB 2766 Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 46,000$ 46,000$ 45,211$ (789)$ Use of money and property 1,500 1,500 16,575 15,075 Total revenues 47,500 47,500 61,786 14,286
EXPENDITURES
Current:
Public works 673 673 672 1 Capital outlay - 272,755 10,616 262,139 Total expenditures 673 273,428 11,288 262,140 Net change in fund balances 46,827$ (225,928)$ 50,498 276,426$ Fund balances (deficit)-beginning 280,563
Fund balances (deficit)-ending 331,061$
132
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure R Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 599,892$ 599,892$ 559,523$ (40,369)$ Intergovernmental 350,000 898,250 35,136 (863,114) Use of money and property 15,000 15,000 122,862 107,862 Total revenues 964,892 1,513,142 717,521 (795,621)
EXPENDITURES
Current:
Public works 60,138 60,138 23,321 36,817 Capital outlay 2,410,000 3,583,340 672,289 2,911,051 Total expenditures 2,470,138 3,643,478 695,610 2,947,868 Excess (deficiency) of revenues
over (under) expenditures (1,505,246) (2,130,337) 21,911 2,152,248
OTHER FINANCING SOURCES (USES)
Transfers In - - 8,350 8,350 Total other financing sources (uses) - - 8,350 8,350 Net change in fund balances (1,505,246)$ (2,130,337)$ 30,261 2,160,598$ Fund balances (deficit)-beginning 1,836,877
Fund balances (deficit)-ending 1,867,138$
133
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure M Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 679,878$ 679,878$ 633,921$ (45,957)$ Intergovernmental 5,823,000 19,264,271 180,619 (19,083,652) Use of money and property 8,000 8,000 68,939 60,939 Total revenues 6,510,878 19,952,149 883,479 (19,068,670)
EXPENDITURES
Current:
Public works 60,138 60,138 71,339 (11,201) Capital outlay 6,158,000 20,039,762 816,261 19,223,501 Total expenditures 6,218,138 20,106,100 893,600 19,212,500 Net change in fund balances 292,740$ (153,951)$ (10,121) 143,830$ Fund balances (deficit)-beginning 1,048,135
Fund balances (deficit)-ending 1,038,014$
134
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Measure W Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 410,000$ 410,000$ 409,784$ (216)$ Intergovernmental - 27,722,279 264,185 (27,458,094) Use of money and property 1,500 1,500 109,398 107,898 Total revenues 411,500 28,133,779 783,367 (27,350,412)
EXPENDITURES
Current:
Public works - - 54,005 (54,005) Capital outlay 100,000 28,071,967 971,386 27,100,581 Total expenditures 100,000 28,071,967 1,025,391 27,046,576 Net change in fund balances 311,500$ 61,812$ (242,024) (303,836)$ Fund balances (deficit)-beginning 1,325,566
Fund balances (deficit)-ending 1,083,542$
135
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Grants Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 4,945,000$ 6,580,849$ 177,490$ (6,403,359)$ Miscellaneous 375,000 375,000 - (375,000) Total revenues 5,320,000 6,955,849 177,490 (6,778,359)
EXPENDITURES
Capital outlay 5,320,000 6,919,849 177,490 6,742,359 Total expenditures 5,320,000 6,919,849 177,490 6,742,359 Net change in fund balances -$ 36,000$ - (36,000)$ Fund balances (deficit)-beginning -
Fund balances (deficit)-ending -$
136
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Capital Improvement Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 1,033,800$ 1,033,800$ 1,083,296$ 49,496$ Licenses and permits 10,902 10,902 10,902 - Intergovernmental - 400,151 35,957 (364,194) Charges for services 570,000 570,000 688,803 118,803 Use of money and property - - 1,617 1,617 Fines and forfeitures 99,600 99,600 111,036 11,436 Contributions - - 30,000 30,000 Total revenues 1,714,302 2,114,453 1,961,611 (152,842)
EXPENDITURES
Current:
Public works 184,456 184,456 184,456 - Capital outlay 4,200,000 24,014,556 15,042,620 8,971,936 Debt service:
Principal 740,000 740,000 740,000 - Interest and fiscal charges 425,962 425,962 425,963 (1) Trustee fees and bond issuance cost 3,650 3,650 5,500 (1,850) Total expenditures 5,554,068 25,368,624 16,398,539 8,970,085 Excess (deficiency) of revenues
over (under) expenditures (3,839,766) (23,254,171) (14,436,928) 8,817,243
OTHER FINANCING SOURCES (USES)
Transfers in - - 15,415,471 15,415,471 Total other financing sources (uses) - - 15,415,471 15,415,471 Net change in fund balances (3,839,766)$ (23,254,171)$ 978,543 24,232,714$ Fund balances (deficit)-beginning 12,706,430
Fund balances (deficit)-ending 13,684,973$
137
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Bond Construction Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property -$ -$ 48,721$ 48,721$ Total revenues - - 48,721 48,721
EXPENDITURES
Capital outlay - 60 - - Total expenditures - 60 - - Net change in fund balances -$ (60)$ 48,721 48,721$ Fund balances (deficit)-beginning 195,152
Fund balances (deficit)-ending 243,873$
138
CITY OF MANHATTAN BEACH, CALIFORNIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Underground Assessment District Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property -$ -$ 101,126$ 101,126$ Miscellaneous - - 37,582 37,582 Total revenues - - 138,708 138,708
EXPENDITURES
Current:
Public works - 1,159,056 262,705 896,351 Total expenditures - 1,159,056 262,705 896,351 Net change in fund balances -$ (1,159,056)$ (123,997) 1,035,059$ Fund balances (deficit)-beginning 1,444,693
Fund balances (deficit)-ending 1,320,696$
139
140
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141
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2025
Total Other
Enterprise
Funds
ASSETS
Current assets:
Cash and cash equivalents 4,924,108$ 545,373$ 1,344,483$ 6,813,964$ Receivables:
Accounts 63,725 - - 63,725 Total current assets 4,987,833 545,373 1,344,483 6,877,689 Noncurrent:
Capital assets, net 6,579,081 - - 6,579,081 Total noncurrent assets 6,579,081 - - 6,579,081 Total assets 11,566,914 545,373 1,344,483 13,456,770
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 22,532 13,209 11,653 47,394 OPEB-related 18,519 37,037 128,825 184,381 Total deferred outflows of resources 41,051 50,246 140,478 231,775
LIABILITIES
Current liabilities:
Accounts payable 430,009 539,963 26,473 996,445 Accrued liabilities 72,560 - 84,113 156,673 Accrued payroll 5,589 3,868 2,994 12,451 Accrued interest - - - - Deposits payable 159,068 - - 159,068 Compensated absences 3,556 4,781 4,510 12,847 Bonds 4,141 1,543 1,543 7,227 Total current liabilities 674,923 550,155 119,633 1,344,711 Noncurrent liabilities:
Advances from other funds - - 450,000 450,000 Compensated absences 14,861 2,708 1,951 19,520 Worker's compensation claims - - - - Claims and judgments - - - - Leases - - - - Subscriptions - - - - Bonds 87,029 32,430 32,428 151,887 Net pension liability 18,354 12,367 11,937 42,658 Net OPEB liability 10,026 20,052 69,747 99,825 Total noncurrent liabilities 130,270 67,557 566,063 763,890 Total liabilities 805,193 617,712 685,696 2,108,601
DEFERRED INFLOWS OF RESOURCES
Pension-related 266 179 173 618 OPEB-related 18,045 36,090 125,531 179,666 Total deferred inflows of resources 18,311 36,269 125,704 180,284
NET POSITION
Net investment in capital assets 6,579,081 - - 6,579,081 Unrestricted 4,205,380 (58,362) 673,561 4,820,579 Total net position 10,784,461$ (58,362)$ 673,561$ 11,399,660$ Storm Drain
County
Parking Lot
State Pier and
Parking Lot
142
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Nonmajor Enterprise Funds
For the Year Ended June 30, 2025
Total Other
Enterprise
Funds
OPERATING REVENUES
Charges for services 2,012,811$ 1,148,148$ 825,439$ 3,986,398$ Miscellaneous - - 586 586 Total operating revenues 2,012,811 1,148,148 826,025 3,986,984
OPERATING EXPENSES
Salaries 171,092 69,117 52,099 292,308 Employee benefits 44,550 27,086 39,483 111,119 Contract for professional services 519,342 79,460 232,225 831,027 Materials and services 741,289 56,651 370,612 1,168,552 Utilities 33,715 5,865 18,757 58,337 Administrative service charges 194,712 37,356 44,172 276,240 Internal services 2,676 5,568 8,856 17,100 Leases and rents - 631,482 - 631,482 Depreciation/amortization 105,722 - - 105,722 Total operating expenses 1,813,098 912,585 766,204 3,491,887 Operating income (loss) 199,713 235,563 59,821 495,097
NONOPERATING REVENUES (EXPENSES)
Interest revenue 230,134 - 127,819 357,953 Interest expense (2,379) (886) (886) (4,151) Total nonoperating revenues (expenses) 227,755 (886) 126,933 353,802 Income (loss) before transfers 427,468 234,677 186,754 848,899 Transfers out (19,436) (242,312) (7,239) (268,987) Change in net position 408,032 (7,635) 179,515 579,912 Net position-beginning 10,386,089 (45,277) 499,428 10,840,240 Restatements (9,660) (5,450) (5,382) (20,492) Net position-beginning (as restated) 10,376,429 (50,727) 494,046 10,819,748 Net position-ending 10,784,461$ (58,362)$ 673,561$ 11,399,660$ Storm Drain
County
Parking Lot
State Pier and
Parking Lot
143
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2025
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 2,009,208$ 1,148,148$ 825,439$ 3,982,795$ Payments to suppliers and service providers (1,200,759) (756,994) (1,104,393) (3,062,146) Payments to employees for salaries and benefits (199,680) (87,027) (65,125) (351,832) Other receipts (payments) - - 586 586 Net cash provided by (used for)
operating activities 608,769 304,127 (343,493) 569,403
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds (19,436) (242,312) (7,239) (268,987) Principal paid on non-capital debt (4,102) (1,528) (1,529) (7,159) Interest paid on on-capital debt (2,379) (886) (886) (4,151) Payments to other funds on interfund borrowings - - (225,000) (225,000) Net cash provided by (used for)
noncapital financing activities (25,917) (244,726) (234,654) (505,297)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,001,046) - - (1,001,046) Net cash provided by (used for)
capital and related financing activities (1,001,046) - - (1,001,046)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 230,134 - 127,819 357,953 Net cash provided by (used for)
investing activities 230,134 - 127,819 357,953 Net increase (decrease) in
cash and cash equivalents (188,060) 59,401 (450,328) (578,987) Cash and cash equivalents-beginning 5,112,168 485,972 1,794,811 7,392,951 Cash and cash equivalents-ending 4,924,108$ 545,373$ 1,344,483$ 6,813,964$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) 199,713$ 235,563$ 59,821$ 495,097$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense 105,722 - - 105,722 (Increase) decrease in accounts receivable (56,809) - - (56,809) Increase (decrease) in accounts payable 218,415 55,520 (441,560) (167,625) Increase (decrease) in accrued liabilities 78,149 3,868 14,783 96,800 Increase (decrease) in deposits payable 53,206 - - 53,206 Increase (decrease) in compensated absences 8,757 2,039 1,079 11,875 Increase (decrease) in net pension liability and related items (1,257) 1,390 2,394 2,527 Increase (decrease) in net OPEB liability and related items 2,873 5,747 19,990 28,610 Total adjustments 409,056 68,564 (403,314) 74,306$ Net cash provided by (used for)
operating activities 608,769$ 304,127$ (343,493)$ 569,403$ Business-Type Activities
County
Parking Lot
State Pier and
Parking Lot Storm Drain
144
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145
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
ASSETS
Current assets:
Cash and cash equivalents 17,643,412$ 1,580,300$ 1,897,707$ 235,942$ 21,357,361$ Receivables:
Accounts 76 19 33,990 - 34,085 Inventories - - - 86,581 86,581 Prepaids - 27,566 - - 27,566 Total current assets 17,643,488 1,607,885 1,931,697 322,523 21,505,593 Noncurrent:
Capital assets, net - 67,399 8,866,317 155,385 9,089,101 Total noncurrent assets - 67,399 8,866,317 155,385 9,089,101 Total assets 17,643,488 1,675,284 10,798,014 477,908 30,594,694
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 116,412 366,905 76,314 134,088 693,719 OPEB-related 64,414 85,348 6,442 6,442 162,646 Total deferred outflows of resources 180,826 452,253 82,756 140,530 856,365
LIABILITIES
Current liabilities:
Accounts payable 70,714 144,533 90,849 181,957 488,053 Accrued liabilities 23,110 72,867 12,598 27,462 136,037 Accrued interest - 83 - - 83 Worker's compensation claims 9,360,860 - - - 9,360,860 Claims and judgments 1,828,171 - - - 1,828,171 Compensated absences 46,061 93,433 27,967 27,794 195,255 Leases - - - 33,678 33,678 Subscriptions - 17,959 - - 17,959 Bonds 21,774 67,937 19,434 26,522 135,667 Total current liabilities 11,350,690 396,812 150,848 297,413 12,195,763 Noncurrent liabilities:
Compensated absences 25,781 168,687 - - 194,468 Worker's compensation claims 7,100,500 - - - 7,100,500 Claims and judgments 903,500 - - - 903,500 Leases - - - 122,494 122,494 Subscriptions - 18,447 - - 18,447 Bonds 457,649 1,427,898 408,474 557,433 2,851,454 Net pension liability 131,161 427,990 94,406 162,563 816,120 Net OPEB liability 34,873 46,207 3,487 3,487 88,054 Total noncurrent liabilities 8,653,464 2,089,229 506,367 845,977 12,095,037 Total liabilities 20,004,154 2,486,041 657,215 1,143,390 24,290,800
DEFERRED INFLOWS OF RESOURCES
Pension-related 1,900 6,200 1,368 2,355 11,823 OPEB-related 62,766 83,165 6,277 6,277 158,485 Total deferred inflows of resources 64,666 89,365 7,645 8,632 170,308
NET POSITION
Net investment in capital assets - 30,993 8,866,317 - 8,897,310 Unrestricted (2,244,506) (478,862) 1,349,593 (533,584) (1,907,359) Total net position (2,244,506)$ (447,869)$ 10,215,910$ (533,584)$ 6,989,951$ Total Internal
Service Funds
Insurance
Reserve
Information
Systems
Fleet
Management
Building
Maintenance
and
Operations
146
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Revenues, Expenses and
Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2025
OPERATING REVENUES
Interdepartmental charges for services 10,309,294$ 4,660,056$ 2,967,860$ 2,637,465$ 20,574,675$ Miscellaneous - 857 135,298 - 136,155 Total operating revenues 10,309,294 4,660,913 3,103,158 2,637,465 20,710,830
OPERATING EXPENSES
Salaries 450,796 1,422,718 237,244 629,919 2,740,677 Employee benefits 164,268 511,272 106,676 253,925 1,036,141 Contract for professional services 242,041 1,145,823 331,094 878,576 2,597,534 Materials and services 844,189 1,521,292 733,806 685,317 3,784,604 Utilities 39 260 - 155,070 155,369 Claims 10,305,085 - - - 10,305,085 Depreciation/amortization - 35,489 950,644 42,938 1,029,071 Total operating expenses 12,006,418 4,636,854 2,359,464 2,645,745 21,648,481 Operating income (loss) (1,697,124) 24,059 743,694 (8,280) (937,651)
NONOPERATING REVENUES (EXPENSES)
Interest and fiscal charges (12,509) (40,171) (11,239) (15,236) (79,155) Gain (loss) on disposal of capital assets - - 106,540 - 106,540 Total nonoperating revenues (expenses) (12,509) (40,171) 95,301 (15,236) 27,385 Income (loss) before transfers (1,709,633) (16,112) 838,995 (23,516) (910,266) Transfers in - - 792,150 - 792,150 Transfers out - - (8,350) (518) (8,868) Change in net position (1,709,633) (16,112) 1,622,795 (24,034) (126,984) Net position-beginning (468,825) (231,742) 8,608,351 (456,122) 7,451,662 Restatements (66,048) (200,015) (15,236) (53,428) (334,727) Net position-beginning, restated (534,873) (431,757) 8,593,115 (509,550) 7,116,935 Net position-ending (2,244,506)$ (447,869)$ 10,215,910$ (533,584)$ 6,989,951$ Total Internal
Service Funds
Insurance
Reserve
Information
Systems
Fleet
Management
Building
Maintenance
and
Operations
147
CITY OF MANHATTAN BEACH, CALIFORNIA
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2025
Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund charges 10,309,270$ 4,660,894$ 3,080,734$ 2,637,465$ 20,688,363$ Payments to suppliers and service providers (1,032,350) (2,684,003) (1,504,432) (1,712,693) (6,933,478) Payments to employees for salaries and benefits (541,420) (1,648,492) (287,790) (825,003) (3,302,705) Other receipts (payments) (10,829,862) - - - (10,829,862) Net cash provided by (used for)
operating activities (2,094,362) 328,399 1,288,512 99,769 (377,682)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds - - 792,150 - 792,150 Transfers to other funds - - (8,350) (518) (8,868) Principal paid on noncapital debt (21,578) (67,325) (19,260) (26,282) (134,445) Interest paid on noncapital debt (12,509) (40,171) (11,239) (15,236) (79,155) Net cash provided by (used for)
noncapital financing activities (34,087) (107,496) 753,301 (42,036) 569,682
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from capital debt - - - 175,797 175,797 Acquisition and construction of capital assets - (55,356) (3,892,196) (175,798) (4,123,350) Principal paid on capital debt - 2,465 (7,187) (42,598) (47,320) Interest paid on capital debt - (1,804) (413) - (2,217) Proceeds from sales of assets - - 106,540 - 106,540 Net cash provided by (used for)
capital and related financing activities - (54,695) (3,793,256) (42,599) (3,890,550) Net increase (decrease) in
cash and cash equivalents (2,128,449) 166,208 (1,751,443) 15,134 (3,698,550) Cash and cash equivalents-beginning 19,771,861 1,414,092 3,649,150 220,808 25,055,911 Cash and cash equivalents-ending 17,643,412$ 1,580,300$ 1,897,707$ 235,942$ 21,357,361$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) (1,697,124)$ 24,059$ 743,694$ (8,280)$ (937,651)$ Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation/amortization expense - 35,489 950,644 42,938 1,029,071 (Increase) decrease in accounts receivable (24) (19) (22,424) - (22,467) (Increase) decrease in inventories - - - 18,838 18,838 (Increase) decrease in prepaid items - (27,566) - - (27,566) Increase (decrease) in accounts payable 53,919 10,938 (439,532) (12,568) (387,243) Increase (decrease) in accrued liabilities 23,110 72,867 12,598 27,462 136,037 Increase (decrease) in compensated absences 5,794 62,105 12,731 (25,634) 54,996 Increase (decrease) in claims and judgments (524,777) - - - (524,777) Increase (decrease) in pension and related items 34,746 137,283 29,802 56,014 257,845 Increase (decrease) in OPEB and related items 9,994 13,243 999 999 25,235 Total adjustments (397,238) 304,340 544,818 108,049 559,969$ Net cash provided by (used for)
operating activities (2,094,362)$ 328,399$ 1,288,512$ 99,769$ (377,682)$ Insurance
Reserve
Information
Systems
Fleet
Management
Building
Maintenance
and
Operations
148
STATISTICAL SECTION
149
150
Exhibit A-1
Statistical Section (Unaudited)
This part of the City's Statistical's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health.
Contents Exhibits
Financial Trends A-2 to A-5
These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time.
Revenue Capacity A-6 to A-14
These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes.
Debt Capacity A-15 to A-18
These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future.
Demographic and Economic Information A-19 to A-21
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments.
Operating & Other Information A-22 to A-25
These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Where ever possible and practical the City provided historical data as far back as ten years. 151
152
Statistical Section
Financial Trends
These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. 153
CITY OF MANHATTAN BEACH, CALIFORNIA
Net Position by Component,
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020
Governmental activities
Net Investment in capital assets 102,028,495$ 103,345,895$ 103,659,026$ 111,406,609$ 113,205,816$ Restricted:
Debt Service & Restricted Cash 12,586 - - - - Special Revenue Funds 10,784,745 11,329,103 9,897,701 7,004,222 20,404,297 Post-Employment Benefits - - 763,621 1,068,946 1,365,844 Total Restricted 10,797,331 11,329,103 10,661,322 8,073,168 21,770,141 Unrestricted (1,2,3) (15,597,553) (16,091,037) (14,862,095) (19,756,174) (29,141,204) Total governmental activities net position 97,228,273$ 98,583,961$ 99,458,253$ 99,723,603$ 105,834,753$ Business-type activities
Net Investment in capital assets 40,621,092$ 42,329,262$ 43,188,261$ 43,807,896$ 47,574,700$ Restricted:
Business Improvement district 541,863 552,266 553,653 571,598 508,505 Debt Service & Restricted Cash - - - - - Total Restricted 541,863 552,266 553,653 571,598 508,505 Unrestricted 38,979,894 43,669,078 48,387,171 56,303,666 60,652,282 Total business-type activities net position 80,142,849$ 86,550,606$ 92,129,085$ 100,683,160$ 108,735,487$ Primary government
Net Investment in capital assets 142,649,587$ 145,675,157$ 146,847,287$ 155,214,505$ 160,780,516$ Restricted:
Business Improvement district 541,863 552,266 553,653 571,598 508,505 Debt Service & Restricted Cash 12,586 - - - - Special Revenue Funds 10,784,745 11,329,103 9,897,701 7,004,222 20,404,297 Post-Employment Benefits - - 763,621 1,068,946 1,365,844 Total Restricted 554,449 552,266 11,214,975 8,644,766 22,278,646 Unrestricted 23,382,341 27,578,041 33,525,076 36,547,492 31,511,078 Total primary government net position 166,586,377$ 173,805,464$ 191,587,338$ 200,406,763$ 214,570,240$ (1) Starting in Fiscal Year ending June 30, 2015, activities reflect pension expense in accordance with GASB 68. (2) Starting in Fiscal Year ending June 30, 2018, activities reflect OPEB pronouncements in accordance with GASB 75. (3) Starting in Fiscal Year ending June 30, 2022, activities reflect pronouncements in accordance with GASB 87.
Fiscal Year Ending
Source: City of Manhattan Beach Finance Department Historical ACFRs 154
Exhibit A-2
2021 2022 2023 2024 2025
110,223,781$ 105,850,112$ 114,823,240$ 126,578,644$ 145,294,713$ - 1,113,451 1,102,123 1,083,533 1,059,081 11,034,877 11,872,909 1,693,107 13,308,020 14,927,419 1,820,529 1,603,036 1,721,763 3,599,985 4,711,798 12,855,406 14,589,396 4,516,993 17,991,538 20,698,298 (31,912,766) 35,958,046 1,734,171 (31,962,853) (51,230,522) 91,166,421$ 156,397,554$ 121,074,404$ 112,607,329$ 114,762,489$ 59,896,315$ 75,545,929$ 89,903,527$ 95,964,968$ 98,549,824$ 420,300 390,867 373,149 362,020 364,628
- - - - - 420,300 390,867 373,149 362,020 364,628 51,521,530 41,343,066 34,014,426 36,046,848 38,641,705 111,838,145$ 117,279,862$ 124,291,102$ 132,373,836$ 137,556,157$ 170,120,096$ 181,396,041$ 204,726,767$ 222,543,612$ 243,844,537$ 420,300 390,867 373,149 362,020 364,628
- 1,113,451 1,102,123 1,083,533 1,059,081 11,034,877 11,872,909 1,693,107 13,308,020 14,927,419 1,820,529 1,603,036 1,721,763 3,599,985 4,711,798 13,275,706 14,980,263 4,890,142 18,353,558 21,062,926 19,608,764 77,301,112 35,748,597 4,083,995 (12,588,817) 203,004,566$ 273,677,416$ 245,365,506$ 244,981,165$ 252,318,646$ Fiscal Year Ending
155
CITY OF MANHATTAN BEACH, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020
Expenses
Governmental activities:
General government 13,318,679$ 13,812,252$ 15,510,329$ 15,887,856$ 17,765,606$ Public Safety 37,458,469 41,381,149 43,350,463 46,314,516 49,316,528 Culture and recreation 8,476,953 9,020,080 9,895,447 9,922,148 8,580,759 Public Works 8,396,503 9,572,971 10,188,714 10,805,410 18,749,101 Interest on long-term debt 416,551 616,179 465,472 439,858 415,642 Total governmental activities expenses 68,067,155 74,402,631 79,410,425 83,369,788 94,827,636 Business-type activities:
Water 9,851,136 10,729,445 11,305,635 12,141,933 11,996,331 Stormwater 1,117,244 1,005,835 1,657,886 1,052,389 1,122,871 Wastewater 1,383,922 1,430,253 1,454,510 1,754,562 1,780,379 Refuse 4,110,197 3,999,131 4,223,690 4,109,233 4,241,681 Parking 4,000,175 3,785,249 4,463,751 3,561,198 3,471,329 Total business-type activities expenses 20,462,674 20,949,913 23,105,472 22,619,315 22,612,591 Total primary government expenses 88,529,829$ 95,352,544$ 102,515,897$ 105,989,103$ 117,440,227$ Program Revenues
Governmental activities:
Charges for services:
General Government 5,859,027$ 7,099,310$ 4,198,331$ 6,495,480$ 5,638,942$ Public Safety 4,182,052 4,173,082 4,586,742 3,538,806 3,418,760 Culture and recreation 3,135,249 3,420,580 3,731,563 3,757,047 3,164,582 Public works 4,253,809 5,293,202 6,831,671 5,540,348 4,752,704 Operating grants and contributions 1,587,534 2,304,536 3,253,902 2,190,097 2,800,719 Capital grants and contributions 2,316,956 1,850,921 2,461,094 4,046,717 22,682,418 Total governmental activities program revenues 21,334,627 24,141,631 25,063,303 25,568,495 42,458,125 Business-type activities:
Charges for services:
Water 14,514,443 14,670,316 15,527,415 15,424,972 15,348,975 Stormwater 345,736 348,880 349,888 350,106 343,406 Wastewater 3,281,179 3,293,933 3,417,772 3,462,973 3,599,946 Refuse 4,242,316 4,205,361 4,306,957 4,131,074 4,474,113 Parking 3,828,054 3,715,624 3,862,585 4,439,452 4,326,827 Operating grants and contributions 19,611 9,353 331,705 117,833 23,090 Capital grants and contributions 850,000 - - - - Total business-type activities program revenues 27,081,339 26,243,467 27,796,322 27,926,410 28,116,357 Total primary government program revenues 48,415,966$ 50,385,098$ 52,859,625$ 53,494,905$ 70,574,482$ Source: City of Manhattan Beach Finance Department
Fiscal Year Ending
156
Exhibit A-3
2021 2022 2023 2024 2025
17,133,923$ 14,917,102$ 18,744,766$ 20,658,755$ 21,890,491$ 49,746,507 (8,739,663) 93,202,238 68,071,122 62,301,498 7,966,453 8,399,151 10,217,475 11,262,864 11,705,634 26,157,349 17,978,786 16,215,433 16,407,350 16,331,137 678,619 2,877,188 2,613,946 2,515,534 2,695,310 101,682,851 35,432,564 140,993,858 118,915,625 114,924,070 13,820,298 12,575,813 14,223,441 14,223,442 16,234,081 1,451,533 1,780,079 1,243,978 1,243,978 1,815,477 1,845,203 1,959,843 2,798,030 2,798,023 3,026,350 - - - - - 4,557,379 4,119,341 5,486,353 5,486,349 6,701,144 21,674,413 20,435,076 23,751,802 23,751,792 27,777,052 123,357,264$ 55,867,640$ 164,745,660$ 142,667,417$ 142,701,122$ 9,555,217$ 8,737,206$ 4,682,620$ 5,000,111$ 5,117,728$ 3,497,543 4,145,094 4,479,503 4,623,538 6,124,100 2,104,003 3,675,974 4,510,778 4,615,812 5,001,986 5,819,113 7,112,774 6,384,078 7,242,420 7,728,776 813,280 1,578,282 4,778,148 2,017,113 1,443,051 7,465,878 6,356,153 3,111,998 3,192,377 2,812,465 29,255,034 31,605,483 27,947,125 26,691,371 28,228,106 15,705,887 15,108,592 14,376,165 15,770,377 18,099,187 308,133 336,494 765,627 357,941 2,012,811 3,592,183 3,556,257 3,274,511 3,619,564 4,305,931 - - - - - 5,458,430 6,784,740 6,196,956 6,172,819 6,456,014 - - - 103,860 - - - - - - 25,064,633 25,786,083 24,613,259 26,024,561 30,873,943 54,319,667$ 57,391,566$ 52,560,384$ 52,715,932$ 59,102,049$ Fiscal Year Ending
157
CITY OF MANHATTAN BEACH, CALIFORNIA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020
Net (Expense)/Revenue
Governmental activities (1,2) (46,732,528)$ (50,261,000)$ (54,347,122)$ (57,801,293)$ (52,369,511)$ Business-type activities (1,2) 6,618,665 5,293,554 4,690,850 5,307,095 5,503,766 Total primary government net expense (40,113,863)$ (44,967,446)$ (49,656,272)$ (52,494,198)$ (46,865,745)$ General Revenues and Other Changes
Governmental activities:
Taxes
Property taxes 26,344,276$ 28,215,709$ 30,318,225$ 32,107,341$ 34,002,017$ Sales taxes 8,826,767 9,088,502 9,083,389 9,734,444 8,817,192 Transient occupancy tax 5,139,425 5,201,518 4,429,080 5,140,858 4,203,026 Motor vehicle in lieu tax 14,430 15,812 18,680 17,276 28,431 Business license tax 3,475,792 3,658,194 3,718,418 4,053,020 3,652,228 Franchise taxes 1,439,957 1,256,125 1,262,037 1,234,752 1,167,345 Real estate transfer taxes 850,974 776,298 788,203 1,013,516 1,102,815 Rental income 3,028,151 3,299,373 2,402,463 3,394,762 2,815,741 Investment earnings 841,905 195,755 413,405 2,352,641 2,683,390 Other 809,976 724,240 10,345 27,943 42,997 Special Items (3)
Transfers (643,506) (814,838) (735,737) (1,009,910) (34,521) Total governmental activities 50,128,147 51,616,688 51,708,508 58,066,643 58,480,661 Business-type activities:
Investment earnings 479,475 70,885 224,471 2,237,070 2,554,232 Transfers 643,506 814,838 735,737 1,009,910 34,521 Special Items (3) - - - - - Other 60,678 258,030 2,580 - 76,430 Total business-type activities 1,183,659 1,143,753 962,788 3,246,980 2,665,183 Total primary government 51,311,806$ 52,760,441$ 52,671,296$ 61,313,623$ 61,145,844$ Change in Net Position
Governmental activities 3,395,619$ 1,355,688$ (2,638,614)$ 265,350$ 6,111,150$ Business-type activities 7,802,324 6,437,307 5,653,638 8,554,075 8,168,949 Total primary government 11,197,943$ 7,792,995$ 3,015,024$ 8,819,425$ 14,280,099$ (1) Starting in Fiscal Year ending June 30, 2015, activities reflect pension expense in accordance with GASB 68 (2) Starting in Fiscal Year ending June 30, 2018, activities reflect OPEB pronouncements in accordance with GASB 75 (3) Special Items in FY 2021 recorded the transfer of net pension and OPEB liabilities and related outflows/inflows due to the closure of the Refuse fund.
Fiscal Year Ending
158
Exhibit A-3
Continued
2021 2022 2023 2024 2025
(72,427,817)$ (3,827,081)$ (113,046,733)$ (92,224,254)$ (86,695,964)$ 3,390,220 5,351,007 861,457 2,272,769 3,096,891 (69,037,597)$ 1,523,926$ (112,185,276)$ (89,951,485)$ (83,599,073)$ 37,598,821$ 39,491,986$ 41,836,587$ 43,851,831$ 45,757,094$ 10,088,430 13,217,943 14,267,013 13,985,150 15,877,679 2,802,514 6,464,049 7,584,021 9,797,116 10,132,620 - - - - - 3,755,555 5,175,626 4,935,627 5,422,317 5,589,153 1,189,086 1,217,755 1,296,708 1,435,830 1,183,181 1,842,571 1,839,059 1,167,944 1,231,040 1,506,215 2,339,670 3,073,065 3,786,275 4,538,328 4,065,670 141,900 (1,922,527) 1,043,766 3,374,272 4,314,164 1,440,844 2,152,318 1,164,833 734,724 1,227,980 (148,434) - - - - 421,631 (1,651,060) (547,908) (1,304,507) 343,174 61,472,588 69,058,214 76,534,866 83,066,101 89,996,930 (21,070) (1,458,512) 406,776 2,311,719 2,525,741 (421,631) 1,651,060 547,908 1,304,507 (343,174) 148,434 - - - - 55,826 396,132 - - - (238,441) 588,680 954,684 3,616,226 2,182,567 61,234,147$ 69,646,894$ 77,489,550$ 86,682,327$ 92,179,497$ (10,955,229)$ 65,231,133$ (36,511,867)$ (9,158,153)$ 3,300,966$ 3,151,779 5,939,687 1,816,141 5,888,995 5,279,458 (7,803,450)$ 71,170,820$ (34,695,726)$ (3,269,158)$ 8,580,424$ Fiscal Year Ending
159
CITY OF MANHATTAN BEACH, CALIFORNIA
Program Revenues by Function/Program,
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020
Program Revenues
Governmental activities:
Charges for services:
General Government 5,859,027$ 7,099,310$ 4,198,331$ 6,495,480$ 5,638,942$ Public Safety 4,182,052 4,173,082 4,586,742 3,538,806 3,418,760 Culture and recreation 3,135,249 3,420,580 3,731,563 3,757,047 3,164,582 Public works 4,253,809 5,293,202 6,831,671 5,540,348 4,752,704 Operating grants and contributions 1,587,534 2,304,536 3,253,902 2,190,097 2,800,719 Capital grants and contributions 2,316,956 1,850,921 2,461,094 4,046,717 22,682,418 Total governmental activities program revenues 21,334,627 24,141,631 25,063,303 25,568,495 42,458,125 Business-type activities:
Charges for services:
Water 14,514,443 14,670,316 15,527,415 15,424,972 15,348,975 Stormwater 345,736 348,880 349,888 350,106 343,406 Wastewater 3,281,179 3,293,933 3,417,772 3,462,973 3,599,946 Refuse 4,242,316 4,205,361 4,306,957 4,131,074 4,474,113 Parking 3,828,054 3,715,624 3,862,585 4,439,452 4,326,827 Operating grants and contributions 19,611 9,353 331,705 117,833 23,090 Capital grants and contributions 850,000 - - - - Total business-type activities program revenues 27,081,339 26,243,467 27,796,322 27,926,410 28,116,357 Total primary government program revenues 48,415,966$ 50,385,098$ 52,859,625$ 53,494,905$ 70,574,482$ Source: City of Manhattan Beach Finance Department
Fiscal Year
$0
$6
$12
$18
$24
$30
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
In Millions
Program & Grant Revenues
Govt Business Grants
Source: City of Manhattan Beach Finance department historical ACFRs 160
CITY OF MANHATTAN BEACH, CALIFORNIA
Program Revenues by Function/Program,
Last Ten Fiscal Years
(accrual basis of accounting)
Program Revenues
Governmental activities:
Charges for services:
General Government
Public Safety
Culture and recreation
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Charges for services:
Water
Stormwater
Wastewater
Refuse
Parking
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
Source: City of Manhattan Beach Finance Department
Exhibit A-4
2021 2022 2023 2024 2025
9,555,217$ 8,737,206$ 4,682,620$ 5,000,111$ 5,117,728$ 3,497,543 4,145,094 4,479,503 4,623,538 6,124,100 2,104,003 3,675,974 4,510,778 4,615,812 5,001,986 5,819,113 7,112,774 6,384,078 7,242,420 7,728,776 813,280 1,578,282 4,778,148 2,017,113 1,443,051 7,465,878 6,356,153 3,111,998 3,192,377 2,812,465 29,255,034 31,605,483 27,947,125 26,691,371 28,228,106 15,705,887 15,108,592 14,376,165 15,770,377 18,099,187 308,133 336,494 765,627 357,941 2,012,811 3,592,183 3,556,257 3,274,511 3,619,564 4,305,931 - - - - - 5,458,430 6,784,740 6,196,956 6,172,819 6,456,014 - - - 103,860 - - - - - - 25,064,633 25,786,083 24,613,259 26,024,561 30,873,943 54,319,667$ 57,391,566$ 52,560,384$ 52,715,932$ 59,102,049$ Fiscal Year
Source: City of Manhattan Beach Finance department historical ACFRs 161
CITY OF MANHATTAN BEACH, CALIFORNIA
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 2017 2018 2019 2020
General Fund
Nonspendable
Inventory -$ -$ -$ 7,167$ 22,915$ Prepaid costs 82,138 133,786 753,765 684,023 50,207 Notes and loans 3,771,864 1,546,266 1,494,268 - - Leases receivable - - - - - Advances to other funds - - - - - Restricted
Post-employment benefits - - 763,621 1,068,946 1,365,844 Debt service & restricted cash 12,586 - - - - Committed
School safety/security - - 1,000,000 - - Assigned to City Retirement Plans - - - - 130,114 Unassigned 19,883,693 23,367,583 22,860,400 24,694,460 25,117,005 Total General fund 23,750,281 25,047,635 26,872,054 26,454,596 26,686,085 All Other Governmental Funds
Nonspendable
Notes and loans - - - - - Advances to other funds - - - - - Restricted
Public safety 873,595 809,361 730,541 724,355 696,359 Culture and recreation - - - - 87,389 Public works 5,272,830 5,495,829 348,127 44,857 11,082,956 Capital projects 4,638,320 5,023,913 8,819,033 6,235,010 8,537,593 Debt service - - - - - Committed
Capital projects 9,270,230 7,961,065 10,569,488 7,598,135 6,430,018 Unassigned (22,488) (22,488) - - - Total all other governmental funds 20,032,487 19,267,680 20,467,189 14,602,357 26,834,315 Total all governmental funds 43,782,768$ 44,315,315$ 47,339,243$ 41,056,953$ 53,520,400$ Fiscal Year Ending
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
In Millions
Total Fund Balance - General & Governmental Funds
General Fund Other Govt Funds
Source: City of Manhattan Beach Finance departmenmt historical ACFRs 162
CITY OF MANHATTAN BEACH, CALIFORNIA
Fund Balances, Governmental Funds,
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund
Nonspendable
Inventory
Prepaid costs
Notes and loans
Leases receivable
Advances to other funds
Restricted
Post-employment benefits
Debt service & restricted cash
Committed
School safety/security
Assigned to City Retirement Plans
Unassigned
Total General fund
All Other Governmental Funds
Nonspendable
Notes and loans
Advances to other funds
Restricted
Public safety
Culture and recreation
Public works
Capital projects
Debt service
Committed
Capital projects
Unassigned
Total all other governmental funds
Total all governmental funds
Exhibit A-5
2021 2022 2023 2024 2025
4,285$ 6,010$ 3,510$ 2,099$ 11,366$ 1,978 13,585 646,818 56,494 1,031,544 555,299 200,064 98,321 49,088 25,688 - - 379,443 541,859 - - - - - - 1,820,529 1,603,036 1,721,763 3,599,985 4,711,798 - 1,113,451 1,102,123 1,083,533 1,059,081 - - - - - 92,390 58,007 58,120 57,289 24,925 30,136,420 36,823,324 34,675,754 34,991,414 23,617,324 32,610,901 39,817,477 38,685,852 40,381,761 30,481,726 - - - - - - - - - - 545,290 549,448 548,830 778,900 712,311 434,597 688,527 906,241 1,174,175 1,357,874 4,457,737 283,245 310,996 302,406 331,061 5,597,283 10,351,689 12,035,029 11,052,539 12,526,173 - - - - - 6,193,057 12,224,799 14,085,698 12,901,582 13,928,846 - - - - - 17,227,964 24,097,708 27,886,794 26,209,602 28,856,265 49,838,865$ 63,915,185$ 66,572,646$ 66,591,363$ 59,337,991$ Fiscal Year Ending
Source: City of Manhattan Beach Finance departmenmt historical ACFRs 163
164
Statistical Section
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. 165
CITY OF MANHATTAN BEACH, CALIFORNIA
Governmental Funds, Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 2017 2018 2019 2020
Revenues
Tax and assessments 48,908,825$ 50,405,516$ 52,246,911$ 55,981,022$ 55,515,380$ Licenses, fees, and permits 2,812,480 2,738,149 3,383,839 3,084,603 2,586,996 Intergovernmental 2,406,440 2,093,411 3,583,892 2,725,463 4,148,407 Charges for services 10,284,762 11,724,813 12,918,156 12,743,463 11,210,104 Interest and Rents 3,870,056 3,495,128 2,815,868 5,747,403 5,246,508 Fines and forfeitures 2,615,306 2,599,654 2,570,974 2,051,692 1,997,803 Net change fair value investments 254,377 (519,971) (518,607) 1,062,513 18,496,956 Other revenues 1,267,893 2,348,814 2,417,724 69,816 941,260 Total revenues 72,420,139 74,885,514 79,418,757 83,465,975 100,143,414 Expenditures
General government 13,360,320 13,290,308 14,018,117 15,581,223 14,304,120 Public Safety 37,189,782 38,522,882 39,685,053 42,890,892 43,739,598 Culture and recreation 8,335,111 8,656,533 8,873,425 9,350,246 7,827,704 Public works 7,356,842 8,113,384 8,206,580 9,966,290 16,831,713 Total operating expenditures 66,242,055 68,583,107 70,783,175 77,788,651 82,703,135 Excess of revenue over expenditures 6,178,084 6,302,407 8,635,582 5,677,324 17,440,279 Capital outlay 3,153,156 3,669,140 2,979,570 8,956,807 3,837,436 Debt service
Interest 403,458 442,116 479,537 456,437 432,213 Principal 725,000 745,000 745,000 795,000 820,000 Fees 4,810 3,400 3,400 Cost of Issuance - - - - - Payment to refunding bond escrow agent - 11,334 - - - Total Non Operating expenditures 4,281,614 4,867,590 4,208,917 10,211,644 5,093,049 Excess of revenues over expenditures 1,896,470 1,434,817 4,426,665 (4,534,320) 12,347,230 Other financing sources (Uses)
Bonds issued - 5,905,000 - - - Premium on bonds issues - 438,570 - - - Proceeds from sale of capital assets 838 - - - - Transfers in 714,082 1,685,005 639,686 1,004,433 460,262 Transfers out (2,024,588) (2,587,281) (2,042,423) (2,752,403) (494,783) Other financing sources - - - - - Other financing uses - (6,343,564) - - - Total other financing sources (uses) (1,309,668) (902,270) (1,402,737) (1,747,970) (34,521) Prior Period Adjustment
Net change in fund balances 586,802 532,547 3,023,928 (6,282,290) 12,312,709 Debt - % of Operating Expenditures & Debt 1.7% 1.7% 1.7% 1.6% 1.5% Changes in Fund Balances
Fiscal Year Ending
$0
$14
$28
$42
$56
$70
$84
$98
$112
$126
$140
$154
$168
$182
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
In Millions
Operating Revenues & Expenditures
Op Rev Op Exp
Source: City of Manhattan Beach Finance Department Historical ACFRs 166
CITY OF MANHATTAN BEACH, CALIFORNIA
Governmental Funds, Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
Tax and assessments
Licenses, fees, and permits
Intergovernmental
Charges for services
Interest and Rents
Fines and forfeitures
Net change fair value investments
Other revenues
Total revenues
Expenditures
General government
Public Safety
Culture and recreation
Public works
Total operating expenditures
Excess of revenue over expenditures
Capital outlay
Debt service
Interest
Principal
Fees
Cost of Issuance
Payment to refunding bond escrow agent
Total Non Operating expenditures
Excess of revenues over expenditures
Other financing sources (Uses)
Bonds issued
Premium on bonds issues
Proceeds from sale of capital assets
Transfers in
Transfers out
Other financing sources
Other financing uses
Total other financing sources (uses)
Prior Period Adjustment
Net change in fund balances
Debt - % of Operating Expenditures & Debt
Changes in Fund Balances
Exhibit A-6
2021 2022 2023 2024 2025
57,509,332$ 67,470,637$ 70,815,982$ 75,723,284$ 80,045,942$ 3,590,052 3,986,713 3,353,163 4,382,549 4,431,999 11,235,911 13,688,939 5,645,466 6,965,665 4,133,782 10,728,270 12,380,756 12,546,935 14,024,075 16,238,125 2,734,193 1,747,756 4,830,041 7,138,974 6,804,962 1,517,113 2,451,283 2,710,161 2,031,868 2,591,901 597,218 (597,218) 960,488 1,058,864 1,574,872 807,381 2,292,463 1,455,310 1,367,924 1,351,233 88,719,470 103,421,329 102,317,546 112,693,203 117,172,816 24,214,335 14,975,284 16,367,565 18,145,903 18,400,649 109,709,901 41,806,108 45,141,651 48,896,675 54,725,393 11,013,760 7,546,214 8,328,464 10,045,476 10,587,337 28,014,195 16,238,824 10,277,583 11,996,279 13,233,137 172,952,191 80,566,430 80,115,263 89,084,333 96,946,516 (84,232,721) 22,854,899 22,202,283 23,608,870 20,226,300 4,499,063 7,882,958 22,349,983 22,349,983 19,226,385 407,312 2,877,605 2,777,496 2,777,496 6,481,103 840,000 4,858,805 4,858,805 4,858,805 2,671,024 3,400 208,043 3,450 3,450 7,100 - - - - - - - - - - 5,749,775 15,827,411 29,989,734 29,989,734 28,385,612 (89,982,496) 7,027,488 (7,787,451) (6,380,864) (8,159,312) 85,879,300 7,440,000 - - - - 1,259,922 - - - - - - - - 2,075,413 3,484,419 3,023,345 3,023,345 15,912,763 (1,653,782) (5,135,479) (4,838,966) (4,838,966) (16,352,871) - - - - 1,346,048 - - - - - 86,300,931 7,048,862 (1,815,621) (1,815,621) 905,940 (3,681,565) 14,076,350 (9,603,072) (8,196,485) (7,253,372)
0.7% 8.8% 8.7% 7.9% 8.6%
Fiscal Year Ending
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt as a % of Operating Expenditures
Source: City of Manhattan Beach Finance Department Historical ACFRs 167
168
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-7
Taxes & Assessment Revenues by Source, Governmental Funds, and Assessment Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Real Est Business Other Taxes
Year Property Tax Sales & Use Hotel Franchise Transfer License Assessments Total 2025 45,757,095$ 15,877,679$ 10,132,620$ 1,183,181$ 950,553$ 5,589,153$ 555,661$ 80,045,942$ 2024 43,851,831 13,268,362 9,797,116 1,435,830 716,788 5,422,317 1,231,040 75,723,284 2023 41,836,586 13,387,211 7,495,260 1,296,708 696,646 4,935,627 1,167,944 70,815,982 2022 39,491,986 10,473,355 6,464,049 1,217,755 1,333,170 5,175,626 3,314,696 67,470,637 2021 37,598,821 10,088,430 2,802,514 1,189,086 1,842,571 3,755,555 232,355 57,509,332 2020 34,002,016 8,407,953 4,203,026 1,167,345 828,842 3,652,228 3,253,970 55,515,380 2019 32,107,341 9,339,304 5,140,858 1,234,752 783,516 4,053,020 3,322,231 55,981,022 2018 30,318,225 8,970,809 4,429,080 1,262,037 788,203 3,718,418 2,760,140 52,246,911 2017 28,215,709 8,962,617 5,201,518 1,256,125 756,049 3,658,194 2,355,304 50,405,516 2016 26,344,276 9,348,605 5,139,425 1,439,957 792,829 3,475,792 2,367,941 48,908,825 Change
2014-2023 93.5% 47.1% 93.1% -11.9% 18.6% 58.0% -52.9% 67.5% Property Tax
57%
SalesTax
20%
Hotel Tax
13%
Real Est Transfer Tax
1%
Business License
7%
Other
1%
Franchise Tax
1%
Tax Revenue Breakdown - 2025
Property Tax SalesTax Hotel Tax Real Est Transfer Tax Business License Other Franchise Tax Source: City of Manhattan Beach Finance Department Historical ACFRs 169
CITY OF MANHATTAN BEACH, CALIFORNIA
Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years
Total
Fiscal Residential Commercial Industrial Other Assessed Year Property Property Property Property Value
1997 3,480,715,272$ 412,801,423$ 100,415,563$ 247,457,520$ 4,241,389,778$ 1998 3,654,002,873 409,619,006 81,733,339 288,151,581 4,433,506,799 2015 12,500,544,975 959,518,199 281,151,363 791,941,297 14,533,155,834 2016 13,616,966,542 1,012,547,408 293,730,521 765,998,032 15,689,242,503 2017 14,551,610,225 1,105,261,590 298,209,901 824,621,493 16,779,703,209 2018 15,552,647,698 1,171,070,581 305,302,530 888,775,373 17,917,796,182 2019 16,543,536,695 1,199,124,711 311,408,568 950,206,556 19,004,276,530 2020 17,637,547,816 1,240,422,307 317,636,726 956,183,073 20,151,789,922 2021 18,698,835,090 1,320,682,796 495,751,708 1,049,831,342 21,565,100,936 2022 19,500,686,332 1,422,052,532 502,026,905 1,093,445,055 22,518,210,824 2023 20,859,717,575 1,529,657,039 513,911,783 1,109,943,068 24,013,229,465 2024 21,988,752,211 1,642,761,250 523,646,184 1,121,769,952 25,276,929,597 2025 23,131,613,568 1,758,317,457 534,119,098 1,155,369,465 26,579,419,588 Source: HDL Coren Cone
170
Exhibit A-8
Total Taxable Assessed
Direct Net Value as a
Tax-Exempt Tax Taxable Percentage of
Property Rate Value Actual Taxable Value
303,210,049$ 0.14759% 4,241,389,778$ 100.000%303,210,049 0.17070% 4,433,506,799 100.000% 301,114,939 0.14498% 14,196,903,333 102.368%
301,114,939 0.14514% 15,352,495,483 102.193%
301,127,715 0.14525% 16,442,347,904 102.052%
289,572,846 0.14535% 17,591,875,267 101.853%
289,572,846 0.14543% 18,676,191,358 101.757%
289,572,846 0.14552% 19,822,800,094 101.660%
289,572,846 0.14561% 21,235,867,296 101.550%
289,572,846 0.14566% 22,187,047,758 101.493%
289,572,846 0.14574% 23,681,804,263 101.399%
289,088,667 0.14581% 24,938,781,033 101.356%
289,649,527 0.14587% 26,227,077,038 101.343%
Source: HDL Coren Cone
171
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-9
Direct and Overlapping Property Tax Rates,
Last Ten Fiscal Years
General City Colleges & Metro Flood Total
Fiscal Levy Direct LA School Water Control Overlap General Total Year (Basic Rate) Rate County Districts District District Rate Levy Rate 2015 1.00000% 0.14498% 0.00000 0.08928 0.00350 0.00000 0.09278 1.00000 1.09278 2016 1.00000% 0.14514% 0.00000 0.08403 0.00350 0.00000 0.08753 1.00000 1.08753 2017 1.00000% 0.14525% 0.00000 0.09062 0.00350 0.00000 0.09412 1.00000 1.09412 2018 1.00000% 0.14535% 0.00000 0.11581 0.00350 0.00000 0.11931 1.00000 1.11931 2019 1.00000% 0.14543% 0.00000 0.11507 0.00350 0.00000 0.11857 1.00000 1.11857 2020 1.00000% 0.14552% 0.00000 0.11371 0.00350 0.00000 0.11721 1.00000 1.11721 2021 1.00000% 0.14561% 0.00000 0.11210 0.00350 0.00000 0.11560 1.00000 1.11560 2022 1.00000% 0.14566% 0.00000 0.11106 0.00350 0.00000 0.11456 1.00000 1.11456 2023 1.00000% 0.14574% 0.00000 0.11140 0.00350 0.00000 0.11490 1.00000 1.11490 2024 1.00000% 0.14581% 0.00000 0.10912 0.00350 0.00000 0.11262 1.00000 1.11262 2025 1.00000% 0.14587% 0.00000 0.11090 0.00350 0.00000 0.11440 1.00000 1.11440 City Direct Rates Overlapping Rates
LA Library, 2.30%
El Camino, 2.95%
Other, 18.08%
City of MB, 14.62%
MBUSD, 15.55%
Education Funds,
15.37%
LA County, 31.13%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Basic Rate Property Tax Dollar Break Down
Source: HDL Coren Cone
172
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-10
Principal Property Tax Payers Based on Net Values,
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Net Net Net Net
Taxpayer Value Rank Value Value Rank Value
MBS Media Campus 364,842,462$ 1 1.41% -$
RREEF America REIT II Corp 302,863,159 2 1.17% 168,057,533 1 1.11% Northrop Grumman Systems Corp 164,695,699 3 0.64% 69,905,052 4 0.46% ONNI Manhattan Towers LP 131,319,952 4 0.51% 61,347,540 6 0.41% Manhattan Beach Hotel Owner LLC 114,898,014 5 0.44% - Manhattan Beach Suites 62,280,900 6 0.24%
Coastal Market Plaza LLC 56,890,812 7 0.22% - Sepulveda BLVD Properties LLC 50,769,259 8 0.20% Bay Club Manhattan Beach LLC 50,246,537 9 0.19% - Skechers USA Retail LLC 36,453,432 10 0.14% 30,937,721 10 0.20% CRP MB Studios LLC - - 153,838,882 2 1.02% Host Marriott Corporation Insterstate - - 86,359,022 3 0.57% Parstem Realty Company INC - - 69,870,790 5 0.46% WH Manhattan Beach Lp - - 33,731,896 7 0.22% Jeffrey K Hepper Company Trust - - 32,665,772 8 0.22% St. Paul Properties - - 31,967,482 9 0.21% Top Ten Total 1,335,260,226$ 5.17% 738,681,690$ 4.88% City Total 25,831,879,084$ 15,147,219,370$
20162025
Source: HDL Coren Cone
173
174
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-11
Property Tax Levies and Collections,
Last Ten Fiscal Years
Fiscal
Year Taxes Levied
Ended for the Percentage Prior Percentage
June 30, Fiscal Year Amount of Levy Year Amount of Levy 2016 22,195,519 21,697,312 97.76% 682,877 22,380,189 100.83% 2017 23,822,585 23,386,545 98.17% 596,471 23,983,016 100.67% 2018 25,520,518 25,119,981 98.43% 675,026 25,795,007 101.08% 2019 27,138,821 26,656,342 98.22% 654,244 27,310,586 100.63% 2020 28,839,478 28,162,858 97.65% 745,930 28,908,788 100.24% 2021 30,949,109 30,333,626 98.01% 1,014,827 31,348,453 101.29% 2022 32,347,837 31,736,342 98.11% 1,235,235 32,971,577 101.93% 2023 34,620,418 33,869,843 97.83% 1,022,916 34,892,759 100.79% 2024 36,503,284 35,862,535 98.24% 687,837 36,550,372 100.13% 2025 38,429,458 37,472,989 97.51% 716,960 38,189,949 99.38% Percent of levy may be over 100% since collections include current and prior years Collected within the
Fiscal Year of the Levy Total Collections to Date
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Property Tax Collections
Source: Los Angeles County Assessor and City of Manhattan Beach Finance Department 175
CITY OF MANHATTAN BEACH, CALIFORNIA
Taxable Sales by Category,
Last Ten Calendar Years
(in thousands of dollars)
2015 2016 2017 2018 2019
Apparel Stores 75,919$ 74,515$ 77,995$ 78,622$ 78,443$ General Merchandise 102,310 101,038 96,353 96,372 96,939 Food Stores 33,110 34,634 33,270 33,882 36,633 Eating and Drinking Establishments 200,840 202,915 202,646 205,363 206,532 Building Materials 2,605 2,623 2,829 4,122 4,083 Service Stations 37,000 31,670 32,992 36,706 36,052 Other Retail Stores 295,157 303,311 308,555 309,131 303,700 All Other Outlets 176,347 154,628 148,764 161,173 184,773 Total 923,288$ 905,334$ 903,404$ 925,371$ 947,155$ City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% * Calendar Year Data available through December 2022.
Calendar Year
Apparel
10% Food Stores
4%
Restaurants
24%
Building
Materials
<1%
Service Stations
3%
Other Retail
34%
Other
25%
Sales by Category - Calendar Year 2024
Source: State Board of Equalization HDL Coren Cone
176
CITY OF MANHATTAN BEACH, CALIFORNIA
Taxable Sales by Category,
Last Ten Calendar Years
(in thousands of dollars)
Apparel Stores
General Merchandise
Food Stores
Eating and Drinking Establishments
Building Materials
Service Stations
Other Retail Stores
All Other Outlets
Total
City direct sales tax rate
* Calendar Year Data available through December 2022.
Exhibit A-12
2020 2021 2022 2023 2024
65,209$ 94,918$ 99,431$ 104,048$ 111,418$ - - - - - 41,294 40,190 41,485 43,261 43,457 139,108 205,943 256,112 268,495 270,090 3,760 4,089 4,017 3,812 3,521 18,438 29,299 37,477 33,059 31,529 298,660 370,379 410,685 408,104 394,516 194,393 206,306 237,583 249,652 285,159 760,862$ 951,124$ 1,086,790$ 1,110,431$ 1,139,690$
1.00% 1.00% 1.00% 1.00% 1.00%
Calendar Year
Source: State Board of Equalization HDL Coren Cone
177
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-13
Direct and Overlapping Sales Tax Rates,
Last Ten Fiscal Years
City
Fiscal Direct L.A.
Year Rate County
2024 1.00% .25%
2023 1.00% .25%
2022 1.00% .25%
2021 1.00% .25%
2020 1.00% .25%
2019 1.00% .25%
2018 1.00% .25%
2017 1.00% .25%
2016 1.00% .25%
2015 1.00% .25%
2014 1.00% .25%
Source: State of California Board of Equalization
178
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-14
Principal Sales Tax Remitters,
Calendar Year Comparison
Tax Remitter
2024 2015
Apple Apple
BevMo Arco
California Pizza Kitchen AT&T Mobility
Chevron Barnes & Noble
CVS Pharmacy BevMo
Fisker Chevron
Joey Manhattan Beach Circle K
Kettle CVS Pharmacy
Macy's Dewitt Petroleum
Manhattan Beach Toyota Scion Frys Electronics
Marriott Manhattan Beach Hotel Houston's
Nick's Manhattan Beach Macy's
Old Navy Manhattan Beach Marriott
Olive Garden Manhattan Beach Toyota Scion
Ralphs Fresh Fare Old Navy
REI Olive Garden
Sephora Ralphs Fresh Fare
Skechers by Mail REI
Strand House Standbar Sephora
Sushi Roku Skechers
Target Strand House Standbar
The Arthur J Target
Tin Roof Bistro Tin Roof Bistro
Trader Joe's Toyota Lease Trust
Wrights Trader Joe's
* Listed Alphabetically
Source: HDL Coren Cone
179
180
Statistical Section
Debt Capacity
These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future.
181
CITY OF MANHATTAN BEACH, CALIFORNIA
Ratios of Outstanding Debt by Type,
Last Ten Fiscal Years
Marine Marine Fire Station
Pension Certificates Refunding Certificates Police/Fire Capital & Total Fiscal Obligation of Certificates of of Refunding Right to Use Subscription Total Per Year Bonds Participation Participation Participation Bonds Leases Payable Governmental Capita 2016 - 6,445,000 - - 9,125,000 341,224 - 15,911,224 448 2017 - - 6,317,766 - 9,042,225 147,506 - 15,507,497 431 2018 - - 6,026,968 - 8,535,865 - - 14,562,833 405 2019 - - 5,706,170 - 8,009,505 - - 13,715,675 389 2020 - - 5,375,372 - 7,468,144 - - 12,843,516 366 2021 89,388,310 - 5,039,574 - 6,972,970 - - 101,400,854 2,856 2022 86,288,700 - 4,693,774 8,552,926 6,340,422 2,090,304 - 107,966,126 3,093 2023 82,910,000 - 4,332,979 8,385,927 5,754,063 1,095,503 584,503 103,062,975 3,006 2024 79,516,630 - 3,962,181 8,208,930 5,152,702 8,718,073 443,963 106,002,479 3,100 2025 76,093,918 - 3,576,382 8,026,934 4,317,122 8,356,190 995,443 101,365,989 2,977 Governmental Activities
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Per Capita Debt - Government Activities
$1,000
Source: City of Manhattan Beach Finance Department Historical ACFRs Debt Schedules 182
Exhibit A-15
Metlox Utility Metlox
Pension Certificates Refunding Refunding Total Total Total Total Obligation of Certificates of Certificates of Subscription Business Per Primary Per Bonds Participation Participation Participation Payable Type Capita Government Capita - - 2,317,328 9,079,279 - 11,396,607 321 27,307,831 0.92% 769 - - 2,117,872 8,645,454 - 10,763,326 299 26,270,823 0.85% 730 - - 1,913,417 8,191,630 - 10,105,047 281 24,667,880 0.77% 687 - - 1,703,962 7,727,805 - 9,431,767 268 23,147,442 0.72% 657 - - 1,484,506 7,243,981 - 8,728,487 249 21,572,003 0.67% 615 1,886,690 - 1,260,050 6,750,157 - 9,896,897 279 111,297,751 3.47% 3,135 1,821,300 - 7,121,457 6,129,232 - 15,071,989 432 123,038,115 3.84% 3,525 1,750,000 - 755,873 5,632,997 $25,846 8,164,716 238 111,227,691 3.47% 3,244 1,678,370 - 514,524 5,091,762 13,053 7,297,709 213 113,300,188 3.53% 3,313 1,606,086 - 258,176 4,535,527 - 6,399,789 188 107,765,778 3.36% 3,165 Business-type Activities Total
Income
Percentage
of Personal
$0
$200
$400
$600
$800
$1,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Per Capita Debt - Business-Type Activities
Source: City of Manhattan Beach Finance Department Historical ACFRs Debt Schedules 183
184
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-16
Direct and Overlapping Governmental Activities Debt
As of June 30, 2025
Gross Percentage Net
Bonded Debt Applicable Bonded
Governmental Unit Balance To City Debt
Direct Debt
City of Manhattan Beach:
Los Angeles County General Fund Obligations 3,036,637,390$ 1.248% 37,897,235$ Los Angeles County Superintendent of Schools COPs 2,331,775 1.248% 29,101 City of Manhattan Beach General Fund Obligations 30,065,773 100.000% 30,065,773 City of Manhattan Beach Pension Obligation Bonds 76,093,915 100.000% 76,093,915 Total Direct Debt 144,086,024
Overlapping Debt
Metropolitan Water District 17,155,000$ 0.644% 110,478 El Camino College District 480,045,366 16.594% 79,658,728 Manhattan Beach Unified School District 194,199,705 99.999% 194,197,763 City of Manhattan Beach 1915 Act Bonds 12,835,000 100.000% 12,835,000 - Total Overlapping Debt 286,801,969
Total Direct and Overlapping Debt 430,887,993$
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Ratios to 2024-25 Assessed Valuation:
Total Overlapping Tax and Assessment Debt - 1.09%
Total Direct Debt - 0.37%
Combined Total Debt - 1.61%
Source: HDL Coren Cone, LA County Assessor Rolls
185
CITY OF MANHATTAN BEACH, CALIFORNIA
Legal Debt Margin Information,
Last Ten Fiscal Years
2016 2017 2018 2019 2020
Total Assessed Value 15,352,495,483$ 16,442,347,904$ 17,591,875,267$ 18,676,191,358$ 19,822,822,094$ Legal debt limit (3.75%) 575,718,581 616,588,046 659,695,323 700,357,176 743,355,829 Total net debt applicable to limit - - - - - Legal debt margin 575,718,581$ 616,588,046$ 659,695,323$ 700,357,176$ 743,355,829$ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Assessed Value Growth 8.14% 7.10% 6.99% 6.16% 6.14%
Source: HdL Coren & Cone
Fiscal YearFiscal Year
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
In Billions
Assessed Property Value
Source: City of Manhattan Beach Finance Department Historical ACFRs 186
Exhibit A-17
2021 2022 2023 2024 2025
21,235,867,296$ 22,187,047,758$ 23,681,804,263$ 24,938,781,033$ 26,579,419,588$ 796,345,024 832,014,291 888,067,660 935,204,289 996,728,235 - - - - - 796,345,024$ 832,014,291$ 888,067,660$ 935,204,289$ 996,728,235$
0.00% 0.00% 0.00% 0.00% 0.00%
7.13% 4.48% 11.52% 17.44% 19.80%
Fiscal Year
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Assessed Value Growth
Source: City of Manhattan Beach Finance Department Historical ACFRs 187
CITY OF MANHATTAN BEACH, CALIFORNIA
Pledged-Revenue Coverage,
Last Ten Fiscal Years
Utility (a) Less: Net
Fiscal Service Operating Available Times
Year Charges Expenses Revenue Principal Interest Coverage 2016 17,814,103 10,389,899 7,424,204 175,000 83,350 (b) 28.74 2017 17,977,445 11,279,607 6,697,838 185,000 76,350 (b) 25.63 2018 18,947,767 11,818,853 7,128,914 190,000 68,950 (b) 27.53 2019 18,889,006 12,947,329 5,941,677 195,000 63,250 (b) 23.01 2020 18,951,923 12,806,497 6,145,426 205,000 55,450 (b) 23.60 2021 19,311,412 14,706,241 4,605,171 210,000 49,299 (b) 17.76 2022 19,037,166 13,525,873 5,511,293 220,000 43,000 (b) 20.96 2023 17,643,822 13,702,932 3,940,890 215,000 38,735 (b) 15.53 2024 19,335,804 16,983,197 2,352,607 230,000 - (b) 10.23 2025 22,399,245 19,234,145 3,165,100 245,000 18,000 (b) 12.03 (a) Operating Expense less depreciation expense
(b) Interest "expense" for this purpose reflects Footnote 6 Debt Service Requirements as presented in prior years' AFCRs and is presented on a cash basis (c) Refunding bonds - please refer to footnotes regarding bond refunding Water - Wastewater Debt Service Principal and Interest
Debt Service
Source: City of Manhattan Beach Finance Department and Historical ACFRs 188
Parking (a) Less: Net
Fund Operating Available Times
Revenue Expenses Revenue Principal Interest Coverage
2,533,935 1,676,685 857,250 395,000 326,362 (b) 1.19 2,460,627 1,687,183 773,444 410,000 310,563 (b) 1.07 2,525,275 1,813,828 711,447 430,000 294,163 (b) 0.98 3,038,490 1,723,456 1,315,034 440,000 278,263 (b) 1.83 2,953,440 1,834,508 1,118,932 460,000 260,663 (b) 1.55 3,261,909 2,647,308 614,601 470,000 246,863 (b) 0.86 4,553,765 2,335,845 2,217,920 490,000 232,763 (b) 3.07 4,301,516 2,234,564 2,066,952 425,000 221,422 (b) 3.20 4,374,352 2,688,762 1,685,590 440,000 221,422 (b) 2.55 4,481,841 4,933,434 (451,593) 460,000 200,000 (b) (0.68) (b) Interest "expense" for this purpose reflects Footnote 6 Debt Service Requirements as presented in prior years' AFCRs and is presented on a cash basis Exhibit A-18
Parking Debt Service Principal and Interest
Debt Service
Source: City of Manhattan Beach Finance Department and Historical ACFRs 189
190
Statistical Section
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments. 191
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-19
Demographic and Economic Statistics,
Last Ten Calendar Years
Man Beach Personal Per Capita Per Capita
Personal Income Personal Personal
Calendar Income L.A. County¹ Income Income Unempl School Year Population (in thousands) (in thousands) L.A. County¹ Man Beach Rate Enrollment 2015 35,297 2,906,208 521,900,000 51,207 82,335 2.7% 6,687 2016 35,488 2,969,983 557,382,000 54,432 83,689 2.1% 6,682 2017 35,991 3,102,178 585,515,000 56,698 86,192 2.6% 6,776 2018 35,922 3,208,080 628,809,000 62,221 89,306 3.4% 6,647 2019 35,250 3,330,194 658,900,000 64,700 94,473 3.2% 6,524 2020 35,058 3,420,177 708,700,000 69,919 97,557 7.3% 6,030 2021 34,902 3,288,263 728,400,000 73,346 94,213 5.2% 5,852 2022 34,284 3,551,561 722,300,000 73,442 103,591 3.4% 5,895 2023 34,195 3,820,044 749,900,000 76,067 111,713 3.8% 5,925 2024 34,051 3,923,236 773,800,000 78,766 115,215 5.0% 5,895 Source: HdL Companies, County of Los Angeles Comprehensive Annual Financial Report ¹ Represents fiscal year ended June 30th.
34,000
34,600
35,200
35,800
36,400
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Population
Calendar Year
City of Manhattan Beach Population
Source: HdL Coren Cone, US Census Bureau; Manhattan Beach School District; Calif Labor Market; Bureau of Econ Analysis; Los Angeles County Economic Development Corp; Department of Transportation 192
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-20
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Employer Employees Rank Employment Employees Rank Employment Northrop Grumman Systems Corp 2657 1 25.52% 2043 1 15.79% Manhattan Beach Unified School District 656 2 732 2
Skechers USA Inc (225 S Sepulveda Blvd) 593 3 5.70% 355 5 2.74% Target Stores T199 Target Corp 405 4 3.89% 405 4 3.13%
City of Manhattan Beach 5 294 6 2.27%
Skechers USA Inc (330 Sepulveda Blvd) 314 6 3.02% 230 9 1.78% Joey Manhattan Beach 180 7 1.73%
Westdrift 180 8
Manhattan Beach Country Club 175 9 1.68% 0.00%
Recreation Equipment Inc - REI 175 10
Ralphs Grocery Company #166 0.00% 167 10 1.29%
Kinecta Federal Credit Union 0.00% 550 3 4.25%
Fry's Electronics, INC 264 7 2.04%
Marriott - HMC Interstate 233 8 1.80%
Total 5,335 41.53% 5,273 35.09%
2025 2016
Source: HDL Coren Cone
193
194
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-21
Full-time Authorized City Employees by Function/Program, Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
General government
Management services 17 17 17 15 15 14 16 16 16 17
Finance* 17 17 17 18 18 19 18 18 19 19
Information Technology* 9 9 9 9 9 9 9 10 10 10
Human Resources 8 8 8 8 8 8 8 8 8 8
Community Development 24 24 28 30 30 30 31 33 38 40
Parks and Recreation 25 25 25 25 25 25 21 21 21 21
Police
Officers 65 65 65 65 65 65 65 72 76 78
Civilians 39.8 41.8 41.8 42.8 42.8 43.8 40.8 44.8 44 44 Fire
Firefighters & officers 30 30 30 30 30 30 30 31 38 38
Civilians 1.2 1.2 1.2 1.2 1.2 1.2 2.2 3.2 3 3
Public works
Engineering 7.5 8.5 11 12.5 13.5 13.5 13.5 16 16 17
Water 11.2 11.35 10.85 10.8 10.8 11.8 11.5 15 16 16
Wastewater 3.2 3.45 3 3.9 3.9 3.9 4.1 6 6 8
Other 34.1 32.7 35.15 34.8 34.8 34.8 34.9 34 38 39
Total 292 294 302 306 307 309 305 328 349 358
Full-time Authorized Employees as of June 30
285
295
305
315
325
335
345
355
365
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Employees
Fiscal Year
City Employees - Ten Year Trend
Source: City of Manhattan Beach Finance Department
195
TYPE OF COVERAGE POLICY NUMBER FROM
Liability
Self-Insured NA 07/01/25
Excess Liability
Public Risk Innovation, Solutions, and Management (PRISM) General Liability 1 Program (GL1) PRISM-PE 25 EL-109 07/01/25 Building & Property (All Risk, Flood, Earthquake, & $100M Boiler and Machinery) Public Risk Innovation, Solutions and Management (PRISM) PRISMPR25-26 03/31/25 Workers' Comp.
Self-Insured NA 07/01/25
Excess Workers' Comp.
Public Risk Innovation, Solutions, and Management (PRISM) PRISM-PE 25 EWC-153 07/01/25 Government Crime Policy
PRISM Master Crime Program 15928719 06/30/25
Cyber Risk
PRISM Cyber Liability Program FN2233951 07/01/25
Excess Cyber various
Deadly Weapons Response
Lloyd’s of London PJ25000500079 07/01/25
CITY OF MANHATTAN BEACH, CALIFORNIA
SCHEDULE OF INSURANCE IN FORCE
June 30, 2025
196
Exhibit A-22
TO LIMITS OF COVERAGE ANNUAL PREMIUM
07/01/26 $500,000 per occurrence $0
07/01/26 $25,000,000 inclusive of self-insured retention $2,076,553 03/31/26 Various Limits and Sub-Limits $976,413
07/01/26 $750,000 per occurrence $0
$436,754
07/01/26 Statutory Limits
06/30/26 $25,000,000 $11,285
07/01/26 $2,000,000 $18,465
various limits/sub-limits NA
07/01/26 $500,000 $11,721
.
CITY OF MANHATTAN BEACH, CALIFORNIA CITY OF MANHATTAN BEACH, CALIFORNIA
SCHEDULE OF INSURANCE IN FORCE SCHEDULE OF INSURANCE IN FORCE June 30, 2025 June 30, 2025
197
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-23
Operating Indicators by Function/Program,
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
General government
Building permits issued 1,853 1,223 1,644 1,353 1,595 2,312 2,174 2,000 2,069 1,928 Building inspections conducted 14,630 14,796 16,032 15,272 14,441 15,650 15,864 16,397 16,885 16,176 Police
Arrests 1,590 1,371 1,095 1,019 795 650 607 730 708 761 Parking citations 66,255 64,105 57,624 47,422 41,133 44,613 58,625 59,809 44,968 61,513 Traffic citations 4,723 3,682 4,209 2,449 2,062 970 1,261 2,091 2,449 2,087 Fire (a)
Emergency responses 3,690 3,760 3,637 3,653 3,642 3,439 3,771 3,930 3,768 3,974 Fires extinguished 63 76 87 87 88 73 81 88 67 47 Inspections 852 697 688 1,421 749 426 444 1,206 1,329 1,128 Refuse collection
Refuse collected (tons per day) 53 53 51 54 53 57 44 31 56 54 Recyclables collected (tons per day) 48 42 35 35 28 33 52 26 29 34 Other public works
Street resurfacing (miles) 1.0 0.7 2.9 4.0 1.3 3.8 2.6 1.6 1.5 0.5 Parks and recreation
Athletic field permits issued 9,912 10,328 8,499 6,815 6,515 118 5,413 6,749 5,796 6,819 Community center admissions* 52,424 63,083 64,592 52,505 39,379 15,752 38,203 54,269 58,337 68,601 Water
Water main breaks 4 9 8 7 7 7 3 4 4 11 Average daily consumption 4,021 4,130 4,392 4,257 4,312 4,442 4,209 4,766 3,548 4,057 (thousands of gallons)
Peak daily consumption 5,344 6,190 5,735 7,266 6,086 5,734 5,718 5,719 5,636 6,317 (thousands of gallons)
Transportation
Total route miles 46,175 40,961 42,535 49,639 34,824 15,507 30,745 32,953 34,585 29,329 Passengers 22,067 26,810 25,963 26,223 16,750 4,275 6,267 7,357 11,558 9,225 (a) Represents calendar year data.
* The Community Centers underwent a full renovation. Both centers were fully operational by January 2013.
Fiscal Year
Source: City of Manhattan Beach Departments
198
CITY OF MANHATTAN BEACH, CALIFORNIA Exhibit A-24Exhibit A-24 Capital Asset Statistics by Function/Program,
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Police
Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 23 23 23 23 23 23 23 23 26 26 Fire stations 2 2 2 2 2 2 2 2 2 2 Other public works
Streets (miles) 90.6 90.6 90.6 90.6 90.6 90.6 90.6 90.6 90.6 90.6 Highways (miles) 15.6 15.6 15.6 15.6 15.6 15.6 15.6 15.6 15.6 15.6 Parks and recreation
Acreage 80.88 80.88 80.88 80.88 80.88 80.88 80.88 80.88 80.88 80.88 Baseball/softball diamonds 18* 18* 18* 18* 18* 18* 13 13 13 13 Soccer/football fields 19* 19* 19* 19* 19* 19* 13 13 13 13 Community centers 3 3 3 3 3 3 3 3 3 3 Water
Water mains (miles) 106 106 106 106 106 113 113 113 113 113 Fire hydrants 774 774 774 775 640 640 640 640 640 640 Storage capacity (1000s Gallons) 9,800 9,800 9,800 9,800 9,800 10,300 1,856° 10,300 10,300 10,300 Wastewater
Sanitary sewers (miles) 82.0 82.0 82.0 82.0 82.0 82.0 82.0 82.0 82.0 82.0 Storm sewers (miles) 25.0 25.0 25.0 21.0 21.0 21.0 21.0 21.0 21.0 21.0 Transportation—minibuses 4 5 5 5 4 5 5 4 4 4 * Includes fields available through a Joint Use Agreement with Manhattan Beach Unified School Dsitrict ° Storage capacity temporarily reduced with Peck Reservoir offline and under construction Fiscal Year
Source: City of Manhattan Beach Departments
199
Exhibit A-25
Population distribution by ethnic group (one race): Household Type:
Number of Number of
Persons Percent Persons Percent
White 26,141 78% Family:
Asian 4,045 14% Married couple 8,011 60%
Black or African American 332 1% Female head 2,547 19% American Indian and Alaska Native 56 0% Male head 2,164 16% Other 4,010 12% Nonfamily 601 5%
34,584 100% 13,323 100%
Population distribution by age group: Population distribution by gender:
Number of Number of
Persons Percent Persons Percent
Under 5 years 1,655 5% Male 16,203 48%
5-14 5,631 16% Female 17,256 52%
15-24 3,278 9%
25-44 7,760 22% 33,459 100%
45-59 8,144 24%
60-64 2,450 7%
65 and over 5,666 16%
34,584 100%
CITY OF MANHATTAN BEACH, CALIFORNIA
DEMOGRAPHIC STATISTICAL DATA
Official Results from the 2020 US Census
Source: Latest data from the American Community Survey, US Census Bureau 200
BOND DISCLOSURE
201
202
Bond Disclosure Section
Continuing Disclosure Requirements
The following section provides information to fulfill the City's bond continuing disclosure requirements of material events, deliquencies, and other financial data not otherwise contained in the audited financial reports. 203
Continuing Disclosure Requirements
This section is provided in accordance with the Continuing Disclosure requirements, as set forth in the offering statements of the following debt issues:
• Metlox and Water/Wastewater Refunding Certificates of Particip ation, Series 2021 • Fire Station #2 Certificates of Participation, Series 2021 • Pension Obligation Bonds, Series 2021
• Assessment District No. 19-4 Limited Obligation Improvement Bonds, Series 2020 A • Assessment District No. 19-12 Limited Obligation Improvement Bonds, Series 2019 A • Assessment District No. 19-14 Limited Obligation Improvement Bonds, Series 2019 A • Reassessment District Limited Obligation Refunding Bonds, Seri es 2018 • Marine Refunding Certificates of Participation, Series 2016 • Police and Fire Facility Refunding Certificates of Participation, Series 2013 The required Annual Report is contained herein as the Audited Financial Statements.
Reporting of Events with Respect to Debt Issuance during Fiscal Year 2024-2025
None. Subsequent to FY 2024-2025, the City issued $12,495,000 of Series 2025A and $3,275,000 of Series 2025B Certificates of Participation in August 2025.
204
Information relating to Reassessment District Bonds, Series 2018, for Fiscal Year 2024-2025
Principal Amount Outstanding $965,000
Balances as of June 30, 2025:
Improvement Fund $13,565
Debt Service Reserve Fund $542,469
The balance in the Debt Service Reserve Fund exceeds the reserve requirement.
Taxes Levied and Delinquent for Fiscal Year 2024-2025
As of June 30, 2025
Total Parcels 339
Taxes Levied in FY 2024-25 511,583.90$
Total Paid 505,815.30
Delinquencies 5,768.60$
Prior Year Delinquencies 9,670.82$
2 3.00
PARCEL ROLL YEAR TAX LEVIED TAX PAID Delinquent
4169003001 2024 2,551.01 1,275.50 1,275.51
4179030063 2024 1,072.41 536.20 536.21
4178010019 2024 1,442.23 - 1,442.23
4178011008 2024 1,442.23 721.11 721.12
4178013014 2024 1,442.23 721.11 721.12
4178013081 2024 1,072.41 - 1,072.41
4169003001 2021 2,544.13 113.01 2,431.12
4169003001 2022 2,584.84 - 2,584.84
4169003001 2023 1,311.18 - 1,311.18
4175025027 2023 147.30 - 147.30
4178013081 2021 1,041.42 - 1,041.42
4178013081 2022 1,072.41 - 1,072.41
4178013081 2023 1,082.55 - 1,082.55
TOTAL DELIQUENCIES $15,439.42
# of Parcels Delinquent for FY 2024-25 6
% of FY 2024-25 Levy Delinquent 1.13%
205
Information relating to Assessment District Bonds 19-12, Series 2019, for Fiscal Year 2024-25
Principal Amount Outstanding $3,725,000
Balances as of June 30, 2025:
Improvement Fund $58,368
Debt Service Reserve Fund $155,007
The balance in the Debt Service Reserve Fund exceeds the reserve requirement.
Taxes Levied and Delinquent for Fiscal Year 2024-2025
As of June 30, 2025
Total Parcels 158
Taxes Levied in FY 2024-25 291,038.34$
Total Paid 287,308.52
Delinquencies 3,729.82$
Prior Year Delinquencies 1,503.76$
2 3
PARCEL ROLL YEAR TAX LEVIED TAX PAID Delinquent
4137006058 2024 1,775.06 1,685.51 89.55
4137008021 2024 1,773.07 797.88 975.19
4137006042 2024 1,596.94 798.47 798.47
4137008010 2024 1,776.66 1,686.71 89.95
4137008018 2024 1,776.66 - 1,776.66
4137008018 2023 1,800.35 296.59 1,503.76
TOTAL DELIQUENCIES $5,233.58
# of Parcels Delinquent for FY 2024-25 5
% of FY 2024-25 Levy Delinquent 1.28%
206
Information relating to Assessment District Bonds 19-14, Series 2019, for Fiscal Year 2024-2025
Principal Amount Outstanding $3,935,000
Balances as of June 30, 2025:
Improvement Fund $64,962
Debt Service Reserve Fund $158,137
The balance in the Debt Service Reserve Fund exceeds the reserve requirement.
Taxes Levied and Delinquent for Fiscal Year 2024-2025
As of June 30, 2025
Total Parcels 179
Taxes Levied in FY 2024-25 311,997.45$
Total Paid 308,707.28
Delinquencies 3,290.17$
Prior Year Delinquencies 8,068.19$
2 3
PARCEL ROLL YEAR TAX LEVIED TAX PAID Delinquent
4137009068 2024 1,530.04 - 1,530.04
4137009072 2024 1,760.13 - 1,760.13
4137009001 2021 1,291.29 - 1,291.29
4137009001 2022 2,549.88 - 2,549.88
4137009001 2023 2,558.07 - 2,558.07
4137009013 2022 810.88 768.91 41.97
4137009013 2023 1,626.98 - 1,626.98
TOTAL DELIQUENCIES $11,358.36
# of Parcels Delinquent for FY 2024-25 2
% of FY 2024-25 Levy Delinquent 1.07%
207
Information relating to Assessment District Bonds 19-4, Series 2020, for Fiscal Year 2024-2025
Principal Amount Outstanding $4,210,000
Balances as of June 30, 2025:
Improvement Fund $12,232
Debt Service Reserve Fund $171,477
The balance in the Debt Service Reserve Fund exceeds the reserve requirement.
Taxes Levied and Delinquent for Fiscal Year 2024-2025
As of June 30, 2025
Total Parcels 122
Taxes Levied in FY 2024-25 155,609.65$
Total Paid 152,046.95
Delinquencies 3,562.70$
Prior Year Delinquencies 6,959.26$
2 3
PARCEL ROLL YEAR TAX LEVIED TAX PAID Delinquent
4169019002 2024 1,235.16 1,235.16
4169022016 2024 1,235.10 1,235.10
4169023009 2024 1,092.44 1,092.44
4169023009 2023 2,323.39 - 2,323.39
4169023009 2021 2,315.87 - 2,315.87
4169023009 2022 2,320.00 - 2,320.00
TOTAL DELIQUENCIES $10,521.96
# of Parcels Delinquent for FY 2024-25 3
% of FY 2024-25 Levy Delinquent 2.29%
208
Update of Financial Tables (Not Otherwise Contained in the Audited Financial Statements)
As required by the offering statements for the Series 2021 Refunding, 2021 Fire Station No. 2, 2021 Pension Obligation Bonds, 2016 and 2013 debt issues.
Investment Portfolio Summary
As of June 30, 2025
Unrepresented Unit and Employee Associations
As of June 30, 2025
Historical and Projected Payments to PERS
Ty pe of Investm ent Market Value
Cash $3,869,184
Local Government Fund 36,029,344
US Treasury & Agency Notes 73,239,400
Medium-Term Notes 21,853,390
Funds Held by Fiscal Agent 6,232,381
Petty Cash 1,376
Total $141,225,075
No. Full-Time Percent of Expiration Date of
Em ploy ee Unit Em ploy ees* Workforce Current A greem ent Manhattan Beach Fire Association 30 8.6% 6/30/2026
Manhattan Beach Police Officers' Association 64 18.4% 6/30/2028 Manhattan Beach Police Management Association 7 2.0% 6/30/2028 Miscellaneous Unit - Teamsters Local 911 157 45.2% 6/30/2028 Manhattan Beach Mid-Managers Employee Association 60 17.3% 6/30/2028 Management/Confidential (not represented) 29 8.4% N/A
Total 347 100.0%
* As Budgeted. Excludes elected officials.
Councilmember 5
Treasurer 1
353
2025 2026 (Estimated)
Police
Employee $1,342,314 $1,426,318
Employer $2,276,614 $2,419,088
Subtotal $3,618,928 $3,845,406
Fire
Employee $803,617 $769,207
Employer $1,341,800 $1,284,345
Subtotal $2,145,417 $2,053,552
Mis c
Employee $1,755,375 $1,907,309
Employer $2,293,679 $2,492,204
Subtotal $4,049,054 $4,399,513
Total $9,813,400 $10,298,471
209
Funding History
Effective July 2025, the actuarial reports combined Classic and PEPRA plans.
Additional Information
The City maintains AAA general obligation ratings from Standard and Poor’s. Standard & Poor’s last reaffirmed the City’s AAA Credit Rating on July 25, 2025.
Share of Pool's Market Plan's Share of Pool's Funded Annual Plan Valuation Date Accrued Liability Value of Assets Unfunded Liability Ratio Covered Payroll Police 6/30/2024 180,174,020 165,924,365 14,249,655 92% 9,735,754 Fire 6/30/2024 86,372,205 79,101,600 7,270,605 92% 5,496,271 Miscellaneous 6/30/2024 154,505,786 144,088,110 10,417,676 93% 23,015,409 210
CITY OF MANHATTAN BEACH
1400 HIGHLAND AVENUE
MANHATTAN BEACH, CA 90266
www.manhattanbeach.gov
(310) 802-5000
@citymb @cityofmb
211