Attachment 1-City of Redondo Beach ACFR — Redondo Beach City Council, March 12, 2024

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CITY OF REDONDO BEACH
Annual Comprehensive Financial Report
For The Year Ended June 30, 2023
Table of Contents
Page(s)

INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................................... i List of Principal Officials .......................................................................................................................................... xiv Organizational Chart ................................................................................................................................................. xv

FINANCIAL SECTION
Independent Auditors’ Report ..................................................................................................................................... 1 Management's Discussion and Analysis .................................................................................................................... 5

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position ............................................................................................................................ 25 Statement of Activities ................................................................................................................................. 26 Fund Financial Statements
Balance Sheet – Governmental Funds ....................................................................................................... 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................................. 33 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................................................................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................................................... 37 Statement of Net Position – Proprietary Funds ........................................................................................... 38 Statement of Revenues, Expenses, and Changes in Net
Position – Proprietary Funds ....................................................................................................................... 40 Statement of Cash Flows – Proprietary Funds ............................................................................................ 42 Statement of Fiduciary Net Position – Fiduciary Funds .............................................................................. 46 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ........................................................... 47 Notes to Basic Financial Statements .............................................................................................................. 51

CITY OF REDONDO BEACH
Annual Comprehensive Financial Report
For The Year Ended June 30, 2023
Table of Contents
Page(s)

REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information .............................................................................................. 99 Budgetary Comparison Information:

Budgetary Comparison Schedule – General Fund .................................................................................. 101 Budgetary Comparison Schedule – Other Intergovernmental Grants ..................................................... 102 Budgetary Comparison Schedule – Low-Mod Income Housing .............................................................. 103

Pension Information:

Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan – Agent Multiple-Employer Plan ........................................................................... 104 Schedule of Plan Contributions – Miscellaneous Plan -
Agent Multiple-Employer Plan............................................................................................................... 106 Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan – Agent Multiple-Employer Plan ........................................................................................ 108 Schedule of Plan Contributions - Safety Plan -
Agent Multiple-Employer Plan............................................................................................................... 110 OPEB Information:

Schedule of Changes in Net OPEB Liability and Related Ratios ............................................................ 112 Schedule of Contributions ........................................................................................................................ 114 Modified Approach for City Streets Infrastructure Capital Assets ................................................................ 117

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Non-Major Governmental Funds .................................................................... 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-Major Governmental Funds ...................................................................................... 128 Budgetary Comparison Schedules - Special Revenue Funds:

State Gas Tax ............................................................................................................................................ 134 Parks and Recreation Facilities ................................................................................................................. 135 Narcotic Seizure / Forfeiture ..................................................................................................................... 136 Proposition A ............................................................................................................................................. 137 Proposition C ............................................................................................................................................. 138 Measure R ................................................................................................................................................. 139 Local Transportation Article 3 .................................................................................................................... 140 Air Quality Improvement ............................................................................................................................ 141 Storm Drain Improvement ......................................................................................................................... 142 Street Landscaping and Lighting District ................................................................................................... 143 Community Development Block Grant ...................................................................................................... 144 Disaster Recovery ..................................................................................................................................... 145 Housing Authority ...................................................................................................................................... 146 Subdivision Park Trust ............................................................................................................................... 147 Measure M ................................................................................................................................................. 148 Measure W ................................................................................................................................................ 149

CITY OF REDONDO BEACH
Annual Comprehensive Financial Report
For The Year Ended June 30, 2023
Table of Contents
Page(s)
Budgetary Comparison Schedules – Capital Project Funds:

Capital Improvement Projects ................................................................................................................... 150 Major Facilities ........................................................................................................................................... 151 Open Space Acquisition ............................................................................................................................ 152 Budgetary Comparison Schedules – Debt Service Funds:

Public Financing Authority ......................................................................................................................... 153 Combining Statement of Net Position – Non-Major Enterprise Funds ......................................................... 155 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Non-Major Enterprise Funds ........................................................................................ 156 Combining Statement of Cash Flows – Non-Major Enterprise Funds .......................................................... 157 Combining Statement of Net Position – Internal Service Funds .................................................................. 158 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ................................................................................................. 160 Combining Statement of Cash Flows – Internal Service Funds ................................................................... 162

STATISTICAL SECTION
Net Position by Component .......................................................................................................................... 167 Changes in Net Position ............................................................................................................................... 169 Fund Balances of Governmental Funds ....................................................................................................... 173 Changes in Fund Balances of Governmental Funds .................................................................................... 175 Assessed Value and Estimated Actual Value of Taxable Property .............................................................. 177 Direct and Overlapping Property Tax Rates ................................................................................................. 179 Principal Property Taxpayers ........................................................................................................................ 180 Property Tax Levies and Collections ............................................................................................................ 181 Ratios of Outstanding Debt by Type ............................................................................................................ 182 Direct and Overlapping Governmental Activities Debt ................................................................................. 183 Legal Debt Margin Information .................................................................................................................... 184 Pledged - Revenue Coverage ..................................................................................................................... 185 Demographic and Economic Statistics ........................................................................................................ 186 Principal Employers ...................................................................................................................................... 187 Full - Time City Government Employees by Function ................................................................................. 188 Operating Indicators by Function ................................................................................................................. 189 Capital Asset Statistics by Function .............................................................................................................. 190 Redondo Beach Public Financing Authority, Wastewater System Financing Project:

Certification of Continuing Disclosure ........................................................................................................... 191 Sewer Rates per Month ................................................................................................................................ 192 Top Ten Customers – Sewage Usage ......................................................................................................... 193 Sewer Connections by Type of Customer .................................................................................................... 194

CITY OF REDONDO BEACH
Annual Comprehensive Financial Report
For The Year Ended June 30, 2023
Table of Contents
Page(s)
Redondo Beach Community Financing Authority; Leaseback Agreement:

Certification of Continuing Disclosure ........................................................................................................... 195 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................................................. 198 $118$/&2035(+(16,9(),1$1&,$/
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CITY OF REDONDO BEACH

MAYOR AND CITY COUNCIL
Bill Brand
Mayor
Nils Nehrenheim Todd Loewenstein Christian Horvath Zein Obagi, Jr. Laura Emdee Councilmember Councilmember Councilmember Councilmember Councilmember District 1 District 2 District 3 District 4 District 5

CITY OFFICIALS
Michael Witzansky
City Manager
Michael Webb Eleanor Manzano Steven Diels
City Attorney City Clerk City Treasurer
Cameron Harding Brandy Forbes
Interim Community Services Director Community Development Director Keith Kauffman Joe Hoffman
Fire Chief Police Chief
Greg Kapovich Susan Anderson
Waterfront and Economic Development Director Library Director Chris Benson Ted Semaan
Information Technology Director Public Works Director
Jennifer Paul Diane Strickfaden
Finance Director Human Resources Director
Elizabeth Hause Luke Smude
Assistant to the City Manager Assistant to the City Manager

CITY OF BUDGET
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CITY OF REDONDO BEACH
MANAGEMENT’S DISCUSSION AND ANALYSIS
Management of the City of Redondo Beach (the “City”) provides the Management Discussion and Analysis of the City’s Annual Comprehensive Financial Report (ACFR) for readers of the City’s financial statements. This narrative overview and analysis of the financial activities of the City is for the fiscal year ended June 30, 2023. We encourage readers to consider this information in conjunction with the additional information that is furnished in the letter of transmittal, which can be found preceding this narrative, and with the City’s financial statements, which follow. Keep in mind that the Financial Highlights, immediately following, are strictly snapshots of information. Net position, changes in net position, and fund disclosures are discussed in more detail later in the report.

Financial Highlights - Primary Government
• Government-Wide Highlights
Net Position - Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at fiscal year ending June 30, 2023, by $136.6 million. Assets and deferred outflows for governmental activities exceeded liabilities and deferred inflows by $54.2 million and assets and deferred outflows for business-type activities exceeded liabilities and deferred inflows by $82.4 million.

Changes in Net Position - The City’s net position increased $15.3 million in fiscal year 2022-2023. Net position of governmental activities increased $11.7 million, and net position of business-type activities increased $3.6 million.
• Fund Highlights
Governmental Funds - At the close of fiscal year 2022-2023, the City’s total governmental funds reported a fund balance of $69.1 million, an increase of $0.1 million from the prior year. Highlighted below are this year’s major funds included in this grouping.

General Fund - The fund balance of the General Fund (including Special Revenue – CalPERS Reserve Fund is zero) on June 30, 2023, was $33.2 million, an increase of $3.8 million from the prior year.

Special Revenue - Other Intergovernmental Grants Fund – The fund balance of the Special Revenue – Other Intergovernmental Grants Fund on June 30, 2023, was negative $(6.1) million, a decrease to the negative fund balance by $805 thousand from the prior year.

Special Revenue - Low-Mod Income Housing Fund - The fund balance of the Special Revenue - Low-Mod Income Housing Fund on June 30, 2023, was $3.5 million, a decrease of $344 thousand from the prior year.

OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are 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.

5 Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business. They are comprised of the following:
• Statement of Net Position
The Statement of Net Position presents summarized information of all the City’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

This financial statement combines and consolidates governmental funds’ current financial resources with capital assets and long-term obligations.
• Statement of Activities
The Statement of Activities presents information showing how the government’s net assets changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused vacation leave).

Government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the city include general government, public safety, public works, cultural and leisure services and housing and community development. Business type activities include operations of the harbor, sewer (wastewater), solid waste, and transit.

The government-wide financial statements include not only the City itself (known as the primary government), but also the activities of legally separate component units: the Parking Authority of the City of Redondo Beach, the Redondo Beach Public Financing Authority (PFA), the Redondo Beach Community Financing Authority (CFA), and the Redondo Beach Housing Authority. Because the City Council acts as the governing board for each of these component units and because they function as part of the city government, their activities are blended with those of the primary government.

The government-wide financial statements can be found behind the tab section titled Government-Wide Financial Statements.

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, 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.

The fund financial statements provide detail information about each of the City’s most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement No. 34 (GASB 34) and replaces the concept of combining like funds and presenting them in total.

Instead, each Major Fund is presented individually, while all Non-Major Funds are summarized and presented in a single column.
6 • Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. A reconciliation of both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balance with the government-wide financial statements can be found on pages behind the tab section titled Government-Wide Financial Statements.

The City has 25 governmental funds, of which three are considered major funds for presentation purposes.

Each major fund is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances. The City’s four major funds are: the General Fund, the Other Intergovernmental Grants Special Revenue Fund, and the Low-Mod Income Housing Special Revenue Fund. Data from the non-major governmental funds (e.g., State Gas Tax Fund, Proposition A Fund, Storm Drain Fund, Disaster Recovery Fund…) are combined into a single aggregated presentation. The governmental funds financial statements can be found on pages behind the tab section titled Fund Financial Statements. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements on pages behind the tab section titled Non-Major Governmental Funds.
• Proprietary Funds
The City maintains two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Enterprise funds are used to account for harbor activities, solid waste (i.e., collection, recycling and hazardous waste disposal), operations and maintenance of City sewers, and transit activities.

Internal service funds are used to accumulate and account for the City’s vehicles, building maintenance and repair, major facilities repair, information technology, emergency communications, and insurance.

Because internal services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds’ financial statements provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary funds’ financial statements use the accrual basis of accounting. Separate financial statements are provided for Harbor Uplands, Harbor Tidelands, Solid Waste, Wastewater, and Transit. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary funds’ financial statements.

Individual fund data for each internal service fund is provided in the form of combining statements in the Internal Service Funds section of this report.

The basic proprietary funds financial statements can be found behind the tab section titled Fund Financial Statements.
• Fiduciary Funds
Fiduciary (Custodial and Private-Purpose Trust Fund) funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support City programs. 7 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 behind the tab section titled Notes to the Financial Statements.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. The required supplementary information includes disclosure of the modified approach for the city pavement infrastructure and budgetary, pension plan information, and other post-employment benefit (OPEB) information. This information can be found behind the tab section titled Required Supplementary Information.

Current and Other Assets include Cash and investments; Accounts receivable; Receivables for interest, taxes, and notes and loans; Internal balances (due to/from and advances between business activities and governmental activities); Due from other governments; Advances to Successor Agency; Prepaid items; and Restricted cash and investments with fiscal agents.

Capital Assets include: Asset’s net of depreciation as well as assets not being depreciated (e.g., Streets, Land, and Construction in progress).

Deferred Outflows of Resources include: Deferred charge on debt refunding, pension related items, and OPEB related items.

Long-Term Liabilities Outstanding include: Compensated absences payable, Claims and judgments payable, and Long-term debt payable.

Other Liabilities include: Accounts payable, Accrued liabilities; Pollution remediation liability; Accrued interest; Unearned revenue; and Deposits payable.

Deferred Inflows of Resources include: Pension related items and OPEB related items. 8 Net Position
The chart above reflects the City’s combined net position (governmental and business-type activities) of $136.6 million at the close of fiscal year ending June 30, 2023.

The largest portion of the City’s total net position (186.7%) reflects investment in capital assets (e.g., land, streets, sewers, buildings, machinery, and equipment) net of outstanding debt used to acquire those assets. The city uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The remaining City net position represents resources that are either subject to external restrictions (e.g., certain capital projects, debt service) or unrestricted. The unrestricted net position is negative primarily as a result of pension related reporting first implemented in Fiscal Year 2014-2015 pursuant to GASB Statement No. 68.

Changes in Net Position
Also noted in the chart above, the City’s Fiscal Year 2022-2023 total net position increased by $15.3 million, or

12.7%, from the prior year. The governmental activities net position increased $11.7 million, or 27.6%, and business-type activities net position increased $3.6 million, or 4.6%.

Within total assets, capital assets, net of accumulated depreciation, increased by $26.7 million, or 11.1%. This increase in capital assets also resulted in a corresponding increase in Net Investments in Capital Assets of $22.7 million, or 9.76%. The increase in net position is due to these capital asset increases and a decrease in deferred inflows of resources related to pensions and other post-employment benefits (OPEB) of $49.6 million. The significant decrease in deferred inflows, outflows, and long-term liabilities reflects the impact of the City’s 2021 payment related to the pension liability.
9 Levels of revenues and expenditures also impact current assets and other liabilities and, therefore, cause changes in net position. As reflected above, total revenues increased in fiscal year 2022-2023 by $4 million, or 2.5%.

Decreases in program revenues are primarily reflected in charges for services. General revenue decreased overall as a result of lower transient occupancy tax revenue.

Citywide total expenses increased $16.9 million, or 12.5%, when compared to fiscal year 2021-2022. The increase in expenses was primarily related to increased personnel costs with higher CalPERS contributions and fiscal year 2020-2021 work on capital improvement projects.
10 Governmental Activities
As reflected in the Changes in Net Position schedule above, the total governmental activity expenses were $125.1 million in fiscal year 2022-2023; and total revenues from governmental activities were $136.6 million, of which 40% were derived from program revenues primarily consisting of charges for services and grants.

As shown on the following chart, the governmental activity expenses net of program revenues, increased $16.1 million, or 12.84%, in fiscal year 2022-2023. As with the increase in citywide total expenses, the increase reflects higher expenditures for pension-related items and capital improvement projects. *Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry. They reduce the net cost of the function to be financed from the government’s general revenues.

The chart below is a graphical representation of the schedule above. (5) - 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
General Government
Public Safety
Public Works
Cultural and Leisure Services
Housing and Community Services
Interest on Long-Term Debt
Dollars in Millions

EXPENSES NET OF PROGRAM REVENUES
Fiscal Year 2022-2023 Fiscal Year 2021-2022
11 General Revenues Related to Governmental Activities
General Revenues 2022-2023 2021-2022
Increase /
(Decrease)
Taxes $ 76,632,065 $ 73,874,265 3.7%
Use of Money and Property 3,558,292 83,927 4139.7%
Other Revenues 559,888 792,057 -29.3%
Total General Revenues 80,750,245 74,750,249 8.0%
General revenues are all other revenues not attributable to a specific program and, therefore, not categorized as program revenues. These revenues include taxes, use of money and property, and other revenues and increased 8%.
12 Business-Type Activities
The city has five business-type activities: Harbor Tidelands, Harbor Uplands, Solid Waste, Wastewater, and Transit.

The total net position of the business-type activities increased by $3.6 million from the prior year.

Harbor Tidelands is used for the operations of small boat harbor facilities available to the general public, including related pier activities. This fund is restricted under the City Tidelands Trust Agreement with the State of California.

In fiscal year 2022-2023, the total net position of the Harbor Tidelands increased by $1.7 million from the prior year.

Harbor Uplands is also used for the operations of small boat harbor facilities available to the general public, including related pier activities. However, the use of these funds is subject only to the decisions of the City Council. In fiscal year 2022-2023, the total net position of Harbor Uplands increases by $577 thousand from the prior year.

Wastewater is funded by a capital facility charge, more commonly referred to as a sewer user fee. These funds are used to support the City's sewer infrastructure operations and improvements. In fiscal year 2022-2023, the total net position of Wastewater increased $792 thousand from the prior year.

Solid Waste is the City’s comprehensive solid waste program, which includes refuse collection, recycling, and hazardous waste disposal services. The solid waste program is supported through user service fees. In fiscal year FY 2022-2023, the total net position of Solid Waste increased $542 thousand from the prior year.

Transit operations provide transportation services mainly to the cities of Redondo Beach, Hermosa Beach, and Manhattan Beach. The transit system is supported through bus passes, passenger fares, Transportation Development Act Article 4 funding, and Propositions A and C discretionary funding. In fiscal year 2022-2023, the total net position of Transit decreased $90 from the prior year.

INTERNAL SERVICE FUNDS
The City has six internal service funds, as well as overhead. The internal service funds are: Vehicle Replacement, Building Occupancy, Information Technology, Self-Insurance Program, Emergency Communications, and Major Facilities Repair. These funds are used to account for interdepartmental operations where service providers (e.g., fleet, IT, building maintenance) recoup costs by charging user departments.

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Please note that unlike the Government-Wide financial statements displayed previously, the fund financial statements which follow are not reflected on a full accrual basis. Therefore, amounts reflected in the fund financial statements versus the Government-Wide statements may differ due to this change in accounting methodology.
13 Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Governmental Funds - The following schedule is a summary of governmental fund revenues for fiscal year ended June 30, 2023, and includes Major and Non-Major Funds. It reflects the amount and percent of increase or decrease of each source of revenue compared to the prior year.

Taxes

55.9%
Interdepartmental

6.4%
Licenses and
Permits

1.9%
Intergovernmental

19.3%
Charges for
Services

8.6%
Use of Money and
Property

2.6%
Fines and
Forfeitures

1.0% Miscellaneous

4.4%
Governmental Funds Source of Revenue
Fiscal Year 2022-2023
Source of Revenue
FY 22-23
Amount
Percent
of Total
FY 21-22
Amount
Increase
(Decrease)
Over Prior
Year
Taxes 76,632,065 $ 55.9% 73,874,265 $ 2,757,800 $ 3.73 % Interdepartmental 8,745,517 6.4% 10,034,053 (1,288,536) (12.84) % Licenses and Permits 2,607,527 1.9% 1,731,396 50.60 876,131 % Intergovernmental 26,443,713 19.3% 29,628,555 (3,184,842) (10.75) % Charges for Services 11,805,303 8.6% 10,895,140 910,163 8.35 % Use of Money and Property 3,558,292 2.6% 83,927 3, 4,139.75 474,365 % Fines and Forfeitures 1,347,895 1.0% 1,247,572 8.04 100,323 % Miscellaneous 6,049,378 4.4% 3,727,529 2, 62.29 321,849 % Total 137,189,690 $ 100.0% 131,222,437 $ 5,967,253 $ 4.55 % Percent /
Increase
(Decrease)
Percent
14 Total governmental fund revenues increased $5.9 million, or 4.5%, from fiscal year 2021-2022. Taxes increased $2.7 million, or 3.7%, primarily from secured and unsecured property tax consistent with expected growth projections. Interdepartmental revenue decreased $1.3 million, or (12.8) %, with higher funding from sources recorded in the Intergovernmental Grants Fund for various capital improvement projects and bus purchases.

The following schedule is a summary of governmental fund expenditures by function for fiscal year ended June 30, 2023, and includes both Major and Non-Major Funds. It reflects the amount and percent of increase or decrease for each functional category of expenditures compared to the prior year.

General
Government

8.6%
Public Safety

40.7%
Public Works

8.9%
Housing and
Comm. Dev.

8.5%
Cultural and
Leisure

8.4%
Capital Outlay

15.1%
Debt Service:

9.8%
Governmental Funds Expenditures by Category
Fiscal Year 2022-2023
Expenditures
FY 22-23
Amount
Percent
of Total
FY 21-22
Amount
Increase
(Decrease)
From Prior
Year
Percent
Increase
(Decrease)
Current:

General Government 11,874,752 $ 8.6% $ 24,894,820 $ (13,020,068) -52.3% Public Safety 56,313,610 40.7% 209,643,074 (153,329,464) -73.1% Public Works 12,372,547 8.9% 23,081,641 (10,709,094) -46.4% Housing and Comm. Dev. 11,686,810 8.5% 16,644,042 (4,957,232) -29.8% Cultural and Leisure 11,603,710 8.4% 15,492,140 (3,888,430) -25.1% Total Current Expenditures 103,851,429 75.1% 289,755,717 (185,904,288) -64.2% Capital Outlay 20,838,116 15.1% 14,567,037 6,271,079 43.0% Debt Service: 13,556,851 9.8% 6,859,846 6,697,005 97.6% Total $ 138,246,396 100.0% 311,182,600 $ $ (172,936,204) -55.6% 15 Total governmental fund expenditures decreased $173 million, or 56%, from fiscal year 2021-2022. As mentioned earlier, the variances are attributable to:
• Current expenditures decreased by $186 million, or 64.2%, with lower personnel costs from lower CalPERS contributions.
• Capital outlay expenditures increased by $6.3 million, or 43%, reflecting the fluctuating nature of capital improvement project expenses.
• Debt service expenditures increased by $6.7 million or 97.6% in accordance with the debt payment schedules, including the first year of payments on the 2021A Lease Revenue Refunding Bonds.

Although there are three major funds in the City of Redondo Beach (the General Fund, the Other Intergovernmental Grants Fund, and the Low-Mod Income Housing Fund), the following discussions focus on the General Fund, which is the major operating fund of the City.

General Fund expenditures had exceeded revenues during fiscal years 2020-2021 and 2021-2022 which were fiscal years most impacted by the COVID-19 pandemic. When compared to the previous year, fiscal year 2023 revenues increased by $1.4 million, or 1.3%, while expenditures decreased $2.9 million, or 3.3%. 16 General Fund Balance
The fund balance of the General Fund as of June 30, 2023 was $33.2 million, an increase of $3.8 million or 13%, when compared to the prior year. The City Council approved the constraints of the General Fund balance reflected below.

As part of year-end activities, the City Council reviews the General Fund balance and determines how the City should commit/assign the unrestricted portion. As illustrated above, Council constraints of General Fund balance over the past several years reflect the City’s Strategic Plan. Aside from policy-designated amounts (i.e., General Fund Contingency and Compensated Absences), much of the money is committed or assigned to accomplish strategic goals.

Other Intergovernmental Grants Fund Balance
The fund balance of the Other Intergovernmental Grants Fund as of June 30, 2023 was $(6.1) million, a decrease to the negative fund balance of $805 thousand, when compared to the prior year. Revenues and expenditures of the fund, where monies from Federal, State and other governmental agencies are used primarily for capital improvement projects, tend to fluctuate from year to year depending on resources received from other governmental agencies.

Low-Mod Income Housing Fund Balance
The fund balance of the Low-Mod Income Housing Fund as of June 30, 2023 was $3.4 million, a decrease of $344 thousand, when compared to the prior year. Housing assets transferred from the dissolved Redevelopment Agency and funds generated from those assets are used to assist with housing needs for low- and moderate- income individuals.

GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended fiscal year 2022-2023 budget totaled $108.6 million, including net amendments to the originally adopted budget and excluding transfers out of $4.1 million. The City Council adopts budget adjustments during the year to reflect both changed priorities and consideration of events that took place subsequent to the budget adoption. The amendments can be briefly summarized as follows:
• Funding of prior-year encumbrances of $1,270,389
• Funding of carry-over appropriations of $1,845,807.
• Increased mid-year appropriations by $861,121.
17 Budget amendments were funded from/credited to available fund balance. During the year, however, revenues exceeded budgetary estimates by approximately $3.6 million and expenditures were $8.6 million less than budgetary estimates, primarily due to contractual services that were not completed by year-end and 2021A bond principal and interest payments budgeted in Department operating budgets, but charged to transfers out.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
Capital assets of the city, including infrastructure assets are those assets used in the performance of the City’s functions. At June 30, 2023, net capital assets of the governmental and business-type activities totaled $191.2 million and $73.8 million, respectively. Depreciation on capital assets is recognized in the Government-Wide financial statements.

The city has elected to use the “Modified Approach” as defined by GASB 34 for infrastructure reporting for its paving system (streets). Under GASB 34, eligible infrastructure capital assets are not required to be depreciated as long as:
• The City manages the eligible infrastructure capital assets using an asset management system with characteristics of: 1) an up-to-date inventory, 2) condition assessments which summarize the results using a measurement scale, and 3) estimated annual amounts budgeted to maintain and preserve an established condition assessment level.
• The City documents the eligible infrastructure capital assets being preserved approximately at the established and disclosed condition assessment level.

Prior to fiscal year 2008-2009, the City’s PQI rating, an amalgam of the PCR and the International Roughness Index (IRI) established by the World Bank, was based on a 10.0 scale. In fiscal year 2008-2009, the PQI rating was converted to a 100-point scale to make it comparable to alternative pavement rating methods. In fiscal year 2017-2018, the city moved to the PCI rating, an alternate paving rating method, which is most frequently used by adjacent cities for an easier comparison. In line with the Capital Improvement Program and as presented to the City Council on January 16, 2018, City policy is to achieve an average PCI rating of 75 for all streets beginning in fiscal year 2028. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at posted speeds. As of June 30, 2023, the City’s Street system was rated at a PCI of 68.

The City’s budget for street maintenance for the fiscal year ended June 30, 2023 was $40.3 million. Actual expenditures were $14.5 million, with the remaining budget carried forward as continuing appropriations. The city is judiciously investing in this infrastructure asset as part of the five-year Capital Improvement Program and will continue to rehabilitate and maintain its streets in order to achieve this goal. The estimated expenditures required to maintain and improve the overall condition of the streets from July 1, 2022 through June 30, 2023 is a minimum of $4.6 million.
18 More information on the modified approach for City streets infrastructure capital assets is behind the tab section titled Required Supplementary Information.

For more information on the City’s capital assets, refer to Note 8 of the Notes to Financial Statements.

DEBT ADMINISTRATION
Debt service funds are used to account for the accumulation of resources for payment of interest and principal on bonds issued by the City. The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita for the fiscal year 2022-2023 are provided below. These indicators provide important information for management and concerned citizens, as well as potential investors.

Ratio of Debt
to Assessed Debt
Value of per
Amount Property Capita
Net Direct
Bonded Debt $20,512,490,095 1.19% $ 3,575.73
Bonds issued by the Community Financing Authority (CFA), a component unit of the City, were issued to finance various improvements to, and to remedy a variety of deficiencies in the facilities of the Wastewater Enterprise. In FY 2018-2019, the CFA issued bonds to refund various leaseback contingencies and finance the purchase of a sublease between the City and Redondo Fisherman's Cove Company. The city has no general obligation bond indebtedness.
19 For a complete listing of the City’s long-term debt obligations, refer to Note 10 of the Notes to Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
In considering Fiscal Year 2023-2024, the local economy willl be impacted by high interest rates and economic uncertainty, with key revenue sources showing slower revenues following exceptionally strong returns in FY 2022-23.
• Only impacted by possible payment delinquencies, property tax revenue for fiscal year 2023-2024 is projected at $33.4 million, reflecting an incremental improvement in property values as assessed in calendar year 2022. Redondo Beach's housing market has remained fairly stable due to its coastal location. Property tax revenue is the City’s primary source of operating revenue. • Sales and Use Tax revenue is projected to increase by about $115,000, or 1.0%, to $11.5 million, reflecting a small increase over a revised FY 2022-23 projection that reflected data from midyear FY 2022-23 indicating a projected sales tax recovery that was slower than projected following the pandemic. Even at the moderated pace, revenue is well ahead of the City’s pre-pandemic (FY 2018-19) revenue of approximately $10.6 million.
• Utility Users’ Tax (UUT) revenue is projected to decrease by about $140,000 or 2% to $8.5 million. This slight decrease reflects more moderate estimates following exceptionally strong FY 2022-23 receipts.

The estimate is based upon analysis of the projected performance from each of the categorical components of the City’s UUT tax base, including electricity, natural gas, telecommunications, water, and cable television. UUT revenue provides support for essential City operational services. • Transient Occupancy Tax (TOT) revenue is projected to increase by $0.6 million, or 12.5% over prior year receipts to $6.8 million which is still below pre-pandemic levels of approximately $9,000,000. In addition to the anticipated slow recovery in tourism, nearly all of the TOT revenue for the Marine Avenue hotels will be returned to replenish the reserve account that has been used during the pandemic.

General Fund appropriations for fiscal year 2023-2024 are projected at $106.8 million, excluding transfers; or $110.6 million, including $3.8 million in transfers out. Personnel costs in the General Fund decreased by $1.8 million, or 3.3%, reflecting adjustments to budgeting methodology. The FY 2023-24 proposed personnel amounts also reflect restoration of previously deauthorized positions.

During fiscal year 2022-2023, Redondo Beach experienced a 6.5% change in real property assessed valuations, compared to the 2021-2022 increase of 3.3%. Additionally, for the 2022‐23 fiscal year, the actual value increase was due to the transfers of ownership which continues to be expected. Finally, The California Consumer Price Index (the “CCPI”) for 2022‐23 that has been approved by the State is 2.0% which will have impact to the annual adjustment and are directly correlated to economic recovery.

Transient occupancy tax FY 2022-23 actual receipts saw a 13.9% revenue increase over FY 2021-22, and actual sales tax receipts saw an 6.6% decrease while falling from ranking 42 out of 62 in total taxable retail sales out of 88 cities in Los Angeles County. The unemployment rate for Redondo Beach in 2023 fell to 3.3% from 6.5% in 2022 and a pandemic-high peak of 9.4% in 2020. This is below the Los Angeles County and the State of California 2022 unemployment rates of 4.2% and 4.1%, respectively.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
The financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the Financial Services Department at 415 Diamond Street, Redondo Beach California 90277, phone 310-697-3138, or e-mail [email protected]. 20 %$6,&),1$1&,$/
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24 CITY OF REDONDO BEACH
Statement of Net Position
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments $ 96,832,814 $ 33,208,159 $ 130,040,973 Receivables:

Accounts 2,879,572 1,325,097 4,204,669
Taxes 5,834,434 182,197 6,016,631
Accrued interest 473,279 254,293 727,572
Notes and loans 2,842,962 - 2,842,962
Leases 5,221,162 69,023,358 74,244,520
Internal balances 1,175,456 (1,175,456) -
Prepaid costs 160,070 - 160,070
Due from other governments 14,469,092 1,498,449 15,967,541 Advances to Successor Agency 535,731 - 535,731
Restricted assets:

Cash with fiscal agent 1,303,816 399 1,304,215
Capital assets not being depreciated 112,891,496 30,612,815 143,504,311 Capital assets, net of depreciation 79,487,404 43,143,641 122,631,045 Total Assets 324,107,288 178,072,952 502,180,240
Deferred Outflows of Resources:

Deferred charge on refunding - 282,785 282,785
Deferred pension related items 51,137,663 6,036,045 57,173,708 Deferred OPEB related items 3,512,607 422,083 3,934,690 Total Deferred Outflows
of Resources 54,650,270 6,740,913 61,391,183
Liabilities:

Accounts payable 8,788,877 4,901,568 13,690,445
Accrued liabilities 3,439,472 - 3,439,472
Accrued interest 832,289 75,310 907,599
Unearned revenue 486,201 43,712 529,913
Deposits payable 5,103,378 241,117 5,344,495
Pollution remediation liability 150,000 - 150,000
Compensated absences due in one year 947,382 137,234 1,084,616 Claims payable due in one year 748,564 - 748,564
Long-term obligations due in one year 8,109,312 967,480 9,076,792 Noncurrent liabilities:

Compensated absences due in more than one year 2,842,145 411,690 3,253,835 Claims payable due in more than one year 20,172,822 - 20,172,822 Long-term obligations due in more than one year 220,463,048 22,182,420 242,645,468 Net pension liability 27,806,069 2,991,244 30,797,313
Net OPEB liability 11,595,633 1,393,354 12,988,987
Total Liabilities 311,485,192 33,345,129 344,830,321
Deferred Inflows of Resources:

Deferred pension related items 3,663,675 567,024 4,230,699 Deferred OPEB related items 4,260,579 511,958 4,772,537 Deferred leases related items 5,156,539 67,940,032 73,096,571 Total Deferred Inflows
of Resources 13,080,793 69,019,014 82,099,807
Net Position:

Net investment in capital assets 189,024,081 66,054,613 255,078,694 Restricted for:

Housing and community development 12,406,540 - 12,406,540 Public safety 495,635 - 495,635
Public works 5,906,803 - 5,906,803
Debt service 5,375,387 - 5,375,387
Low and moderate income housing 4,854,515 - 4,854,515
Unrestricted (163,871,388) 16,395,109 (147,476,279)
Total Net Position $ 54,191,573 $ 82,449,722 $ 136,641,295 June 30, 2023
Primary Government
See Notes to Financial Statements.
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Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29 CITY OF REDONDO BEACH
Balance Sheet
Governmental Funds
June 30, 2023
General
Assets:

Pooled cash and investments $ 24,931,434 $ 16,911 $ 1,491,790 Receivables:

Accounts 2,257,139 429,000 -
Taxes 5,378,629 - -
Accrued interest 415,855 - -
Notes and loans 21,839 - 2,494,896
Leases 3,933,367 - -
Prepaid costs 148,160 - -
Due from other governments 1,622,672 7,429,039 -
Due from other funds 8,103,574 - -
Advances to Successor Agency - - 535,731
Restricted assets:

Cash and investments with fiscal agents 1,246,492 - -
Total Assets $ 48,059,161 $ 7,874,950 $ 4,522,417
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 2,077,857 $ 1,590,188 $ 52,498
Accrued liabilities 3,439,472 - -
Unearned revenues 153,601 332,600 -
Deposits payable 5,103,378 - -
Due to other funds - 5,739,212 582,213
Pollution remediation liability 150,000 - -
Total Liabilities 10,924,308 7,662,000 634,711
Deferred Inflows of Resources:

Unavailable revenues 59,493 6,266,304 389,992
Deferred leases related items 3,886,942 - -
Total Deferred Inflows of Resources 3,946,435 6,266,304 389,992 Fund Balances:

Nonspendable:

Prepaid costs 148,160 - -
Notes and loans 21,839 - -
Restricted for:

Housing and community development - - -
Public safety - - -
Public works - - -
Debt service - - -
Low and moderate income housing - - 3,497,714
Committed to:

Contingency 8,599,208 - -
Assigned to:

Capital projects - - -
Compensated absenses 785,832 - -
Future pension payments 7,975,721 - -
Continuing operations 15,466,707 - -
Unassigned 190,951 (6,053,354) -
Total Fund Balances 33,188,418 (6,053,354) 3,497,714
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 48,059,161 $ 7,874,950 $ 4,522,417 Special Revenue Funds
Other
Intergovernmental
Grants
Low-Mod Income
Housing
See Notes to Financial Statements.
30 CITY OF REDONDO BEACH
Balance Sheet
Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Accrued interest
Notes and loans
Leases
Prepaid costs
Due from other governments
Due from other funds
Advances to Successor Agency
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Accrued liabilities
Unearned revenues
Deposits payable
Due to other funds
Pollution remediation liability
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Deferred leases related items
Total Deferred Inflows of Resources
Fund Balances:

Nonspendable:

Prepaid costs
Notes and loans
Restricted for:

Housing and community development
Public safety
Public works
Debt service
Low and moderate income housing
Committed to:

Contingency
Assigned to:

Capital projects
Compensated absenses
Future pension payments
Continuing operations
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Other Total
Governmental Governmental
Funds Funds
$ 34,544,676 $ 60,984,811
130,167 2,816,306
455,805 5,834,434
57,424 473,279
326,227 2,842,962
1,287,795 5,221,162
- 148,160
5,417,381 14,469,092
4,411,513 12,515,087
- 535,731
57,324 1,303,816
$ 46,688,312 $ 107,144,840
$ 1,388,367 $ 5,108,910
- 3,439,472
- 486,201
- 5,103,378
5,018,206 11,339,631
- 150,000
6,406,573 25,627,592
538,428 7,254,217
1,269,597 5,156,539
1,808,025 12,410,756
- 148,160
- 21,839
12,406,540 12,406,540
495,635 495,635
5,906,803 5,906,803
5,375,387 5,375,387
1,356,801 4,854,515
- 8,599,208
12,960,508 12,960,508
- 785,832
- 7,975,721
- 15,466,707
(27,960) (5,890,363)
38,473,714 69,106,492
$ 46,688,312 $ 107,144,840
See Notes to Financial Statements.
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CITY OF REDONDO BEACH
Statement of Revenues, Expenses
and Changes in Net Postiion
Proprietary Funds
Year Ended June 30, 2023
Operating Revenues:

Sales and service charges $ 888,641 $ 1,908,261 $ 5,433,482 Harbor rentals 6,725,680 3,846,646 -
Miscellaneous 10,500 - -
Total Operating Revenues 7,624,821 5,754,907 5,433,482
Operating Expenses:

Administration and general 711,609 555,909 333,834
Personnel services 2,792,260 231,799 2,614,048
Contractual services 1,033,339 623,243 588,302
Internal service charges 1,197,114 1,960,748 554,855
Depreciation/amortization expense 435,229 424,344 458,235 Total Operating Expenses 6,169,551 3,796,043 4,549,274
Operating Income (Loss) 1,455,270 1,958,864 884,208
Nonoperating Revenues (Expenses):

Intergovernmental 20,000 - -
Interest revenue 493,719 350,503 211,732
Interest expense (244,550) (81,110) (302,753)
Gain (loss) on disposal of capital assets - - -
Total Nonoperating
Revenues (Expenses) 269,169 269,393 (91,021)
Income (Loss) Before Transfers 1,724,439 2,228,257 793,187 Transfers in 1,787 417 -
Transfers out - (1,650,733) (389)
Changes in Net Position 1,726,226 577,941 792,798
Net Position:

Beginning of Year 22,685,010 22,478,277 32,907,215
End of Fiscal Year $ 24,411,236 $ 23,056,218 $ 33,700,013 Business-Type Activities - Enterprise Funds
Harbor
Tidelands Harbor Uplands Wastewater
See Notes to Financial Statements.
40 CITY OF REDONDO BEACH
Statement of Revenues, Expenses
and Changes in Net Postiion
Proprietary Funds
Year Ended June 30, 2023
Operating Revenues:

Sales and service charges
Harbor rentals
Miscellaneous
Total Operating Revenues
Operating Expenses:

Administration and general
Personnel services
Contractual services
Internal service charges
Depreciation/amortization expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):

Intergovernmental
Interest revenue
Interest expense
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Position
Net Position:

Beginning of Year
End of Fiscal Year
Governmental
Other ActivitiesNon-major Internal
Enterprise Funds Totals Service Funds
$ 6,116,024 $ 14,346,408 $ 23,392,322
- 10,572,326 -
190,829 201,329 224,311
6,306,853 25,120,063 23,616,633
740,442 2,341,794 10,604,906
1,585,689 7,223,796 6,387,910
8,264,664 10,509,548 2,505,954
643,526 4,356,243 2,181,442
154,263 1,472,071 1,472,494
11,388,584 25,903,452 23,152,706
(5,081,731) (783,389) 463,927
4,171,328 4,191,328 -
- 1,055,954 -
(58,696) (687,109) (261,731)
1,241 1,241 17,785
4,113,873 4,561,414 (243,946)
(967,858) 3,778,025 219,981
1,510,824 1,513,028 2,396
(417) (1,651,539) (22,486)
542,549 3,639,514 199,891
739,706 78,810,208 10,210,327
$ 1,282,255 $ 82,449,722 $ 10,410,218
Business-Type Activities - Enterprise
Funds
See Notes to Financial Statements.
41 CITY OF REDONDO BEACH
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers and users $ 7,024,049 $ 5,458,503 $ 5,486,967 Cash paid to suppliers for goods and services (1,158,656) (2,991,036) (101,839) Cash paid to employees for services (3,735,875) (1,764,767) (2,133,435) Net Cash Provided (Used) by Operating Activities 2,129,518 702,700 3,251,693 Cash Flows from Non-Capital
Financing Activities:

Cash transfers out - (1,650,733) (389)
Cash transfers in 1,787 417 -
Repayment received from other funds - - -
Payment made to other funds (57,876) - -
Principal paid on non-capital debt issued (326,802) (108,432) (109,937) Payment for cost of issuance - - -
Interest paid on non-capital debt (244,550) (81,110) (94,871) Cash received from other governments - - -
Net Cash Provided (Used) by
Non-Capital Financing Activities (627,441) (1,839,858) (205,197) Cash Flows from Capital
and Related Financing Activities:

Acquisition and construction of capital assets (4,450,097) (516,147) (4,435,155) Principal paid on capital debt - - (325,000)
Interest paid on capital debt - - (208,430)
Proceeds from sale of capital assets - - -
Net Cash Provided (Used) by
Capital and Related Financing Activities (4,450,097) (516,147) (4,968,585) Cash Flows from Investing Activities:

Interest received 475,067 345,704 174,692
Net Cash Provided (Used) by
Investing Activities 475,067 345,704 174,692
Net Increase (Decrease) in Cash
and Cash Equivalents (2,472,953) (1,307,601) (1,747,397) Cash and Cash Equivalents at Beginning of Year 12,516,274 3,103,143 20,791,766 Cash and Cash Equivalents at End of Year $ 10,043,321 $ 1,795,542 $ 19,044,369 Wastewater
Business-Type Activities - Enterprise Funds
Harbor
Tidelands Harbor Uplands
See Notes to Financial Statements.
42 CITY OF REDONDO BEACH
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Wastewater
Business-Type Activities - Enterprise Funds
Harbor
Tidelands Harbor Uplands
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) $ 1,455,270 $ 1,958,864 $ 884,208 Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:

Depreciation/amortization 435,229 424,344 458,235
(Increase) decrease in accounts receivable (273,558) (20,108) (1,735) (Increase) decrease in taxes receivable - - 55,220
(Increase) decrease in leases receivable 1,777,991 224,146 - (Increase) decrease in deferred outflow pension related items 7,128,453 2,068,004 2,336,287 (Increase) decrease in deferred outflow OPEB related items (11,979) (8,557) (9,601) (Increase) decrease in prepaid expense 30,000 - -
Increase (decrease) in accounts payable 1,659,901 95,988 1,325,076 Increase (decrease) in deposits payable - 15,483 -
Increase (decrease) in unearned revenue - - -
Increase (decrease) in claims and judgments - - -
Increase (decrease) in net pension liability (5,691,020) (2,486,868) (1,224,667) Increase (decrease) in OPEB liability 93,505 52,876 50,076 Increase (decrease) in deferred pension related items (2,238,534) (1,093,705) (654,148) Increase (decrease) in deferred OPEB related items (118,574) (50,372) (33,688) Increase (decrease) in deferred inflow lease related items (2,105,205) (515,925) - Increase (decrease) in compensated absences (11,961) 38,530 66,430 Total Adjustments 674,248 (1,256,164) 2,367,485
Net Cash Provided (Used) by
Operating Activities $ 2,129,518 $ 702,700 $ 3,251,693
Non-Cash Investing, Capital, and Financing Activities:

Net Amortization of Premium and Deferred Loss $ - $ - $ 547 Subscription financing - - -
Subscription assets aquired - - -
See Notes to Financial Statements.
43 CITY OF REDONDO BEACH
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net Cash Provided (Used) by Operating Activities
Cash Flows from Non-Capital
Financing Activities:

Cash transfers out
Cash transfers in
Repayment received from other funds
Payment made to other funds
Principal paid on non-capital debt issued
Payment for cost of issuance
Interest paid on non-capital debt
Cash received from other governments
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:

Interest received
Net Cash Provided (Used) by
Investing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Governmental
Other ActivitiesEnterprise Internal
Funds Totals Service Funds
$ 6,142,271 $ 24,111,790 $ 23,785,259
(9,187,342) (13,438,873) (16,809,158)
(1,423,596) (9,057,673) (5,062,987)
(4,468,667) 1,615,244 1,913,114
(417) (1,651,539) (22,486)
1,510,824 1,513,028 2,396
884,888 884,888 -
- (57,876) -
(79,065) (624,236) -
- - (24,308)
(58,696) (479,227) (256,055)
3,273,935 3,273,935 -
5,531,469 2,858,973 (300,453)
(319,393) (9,720,792) (2,089,546)
- (325,000) (89,562)
- (208,430) (2,186)
1,240 1,240 18,029
(318,153) (10,252,982) (2,163,265)
- 995,463 -
- 995,463 -
744,649 (4,783,302) (550,604)
1,580,677 37,991,860 36,398,607
$ 2,325,326 $ 33,208,558 $ 35,848,003
Business-Type Activities -
Enterprise Funds
See Notes to Financial Statements.
44 CITY OF REDONDO BEACH
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2023
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:

Depreciation/amortization
(Increase) decrease in accounts receivable
(Increase) decrease in taxes receivable
(Increase) decrease in leases receivable
(Increase) decrease in deferred outflow pension related items (Increase) decrease in deferred outflow OPEB related items (Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in deposits payable
Increase (decrease) in unearned revenue
Increase (decrease) in claims and judgments
Increase (decrease) in net pension liability
Increase (decrease) in OPEB liability
Increase (decrease) in deferred pension related items
Increase (decrease) in deferred OPEB related items
Increase (decrease) in deferred inflow lease related items Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:

Net Amortization of Premium and Deferred Loss
Subscription financing
Subscription assets aquired
Governmental
Other ActivitiesEnterprise Internal
Funds Totals Service Funds
Business-Type Activities -
Enterprise Funds
$ (5,081,731) $ (783,389) $ 463,927
154,263 1,472,071 1,472,495
(162,495) (457,896) (11,736)
- 55,220 -
- 2,002,137 -
1,524,179 13,056,923 7,780,456
(5,042) (35,179) (3,658)
- 30,000 (4,915)
428,016 3,508,981 1,723,783
- 15,483 -
(2,087) (2,087) -
- - (3,316,793)
(853,711) (10,256,266) (4,161,862)
33,274 229,731 70,175
(469,314) (4,455,701) (1,967,402)
(34,912) (237,546) (138,887)
- (2,621,130) -
893 93,892 7,531
613,064 2,398,633 1,449,187
$ (4,468,667) $ 1,615,244 $ 1,913,114
$ - $ 547 $ -
- - -
- - -
See Notes to Financial Statements.
45 CITY OF REDONDO BEACH
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Custodial
Funds
Assets:

Pooled cash and investments $ 178,012 $ 1,426,199
Receivables:

Accounts 37,758 22,082
Accrued interest - 14,873
Total Assets 215,770 1,463,154
Liabilities:

Accrued interest - 121,496
Due to other governments - 2,443,621
Long-term liabilities:

Due in one year - 595,000
Due in more than one year - 12,406,131
Advances from City - 535,731
Total Liabilities - 16,101,979
Net Position:

Restricted for other purposes 215,770 (14,638,825)
Total Net Position $ 215,770 $ (14,638,825)
Private-Purpose
Trust Fund
Redevelopment
Obligation
Retirement Fund
See Notes to Financial Statements.
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121

CITY OF REDONDO BEACH
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments $ 2,501,555 $ 99,643 $ 192,764 $ 2,631,849 Receivables:

Accounts 3,372 - - -
Taxes 428,746 - - -
Notes and loans - - - -
Accrued interest 10,847 - 2,518 9,688
Leases - - - -
Due from other governments - - - -
Due from other funds - - - -
Restricted assets:

Cash and investments with fiscal agents - - - -
Total Assets $ 2,944,520 $ 99,643 $ 195,282 $ 2,641,537 Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable $ 217,386 $ - $ 11,965 $ -
Due to other funds - - - -
Total Liabilities 217,386 - 11,965 -
Deferred Inflows of Resources:

Unavailable revenues - - - -
Deferred leases related items
Total Deferred Inflows of Resources - - - -
Fund Balances:

Restricted for:

Housing and community development - 99,643 - 2,641,537
Public safety - - 183,317 -
Public works 2,727,134 - - -
Debt service - - - -
Low and moderate income housing - - - -
Assigned to:

Capital projects - - - -
Unassigned - - - -
Total Fund Balances 2,727,134 99,643 183,317 2,641,537
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 2,944,520 $ 99,643 $ 195,282 $ 2,641,537 State Gas Tax
Parks and
Recreation
Facilities
Narcotic
Seizure /
Forfeiture Proposition A
Special Revenue Funds
122

CITY OF REDONDO BEACH
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Notes and loans
Accrued interest
Leases
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Deferred leases related items
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Housing and community development
Public safety
Public works
Debt service
Low and moderate income housing
Assigned to:

Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

(CONTINUED)
$ 4,075,024 $ 1,830,354 $ - $ 257,858
- - - -
- - - -
- - - -
21,115 - - 1,214
- - - -
- - - 23,003
- - - -
- - - -
$ 4,096,139 $ 1,830,354 $ - $ 282,075
$ 367,668 $ 35,834 $ - $ 588
- - 907 -
367,668 35,834 907 588
- - - -
- - - -
3,728,471 1,794,520 - 281,487
- - - -
- - - -
- - - -
- - - -
- - - -
- - (907) -
3,728,471 1,794,520 (907) 281,487
$ 4,096,139 $ 1,830,354 $ - $ 282,075
Local
Transportation
Article 3
Air Quality
Proposition C Measure R Improvement
Special Revenue Funds
123

CITY OF REDONDO BEACH
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Notes and loans
Accrued interest
Leases
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Deferred leases related items
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Housing and community development
Public safety
Public works
Debt service
Low and moderate income housing
Assigned to:

Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

$ 245,955 $ 226,168 $ - $ 321,736
- 600 - -
- 27,059 - -
- - 326,227 -
- - - -
- - - -
- - 235,757 -
- - - -
- - - -
$ 245,955 $ 253,827 $ 561,984 $ 321,736
$ 11,540 $ 140,507 $ 25,081 $ 9,418
- - 25,528 -
11,540 140,507 50,609 9,418
- - 538,428 -
- - 538,428 -
- 113,320 - -
- - - 312,318
234,415 - - -
- - - -
- - - -
- - - -
- - (27,053) -
234,415 113,320 (27,053) 312,318
$ 245,955 $ 253,827 $ 561,984 $ 321,736
Storm Drain
Improvement
Street
Landscaping
and Lighting
District
Community
Development
Block Grant
Disaster
Recovery
Special Revenue Funds
124

CITY OF REDONDO BEACH
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Notes and loans
Accrued interest
Leases
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Deferred leases related items
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Housing and community development
Public safety
Public works
Debt service
Low and moderate income housing
Assigned to:

Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

(CONTINUED)
$ 2,080,394 $ 3,765,883 $ 2,271,817 $ 851,963
- - - -
- - - -
- - - -
- - 10,582 -
- - - -
- - - -
- - - -
- - - -
$ 2,080,394 $ 3,765,883 $ 2,282,399 $ 851,963
$ - $ 18,321 $ 172,748 $ 16,360
723,593 - - -
723,593 18,321 172,748 16,360
- - - -
- - - -
- 3,747,562 - -
- - - -
- - 2,109,651 835,603
- - - -
1,356,801 - - -
- - - -
- - - -
1,356,801 3,747,562 2,109,651 835,603
$ 2,080,394 $ 3,765,883 $ 2,282,399 $ 851,963
Housing
Authority
Subdivision
Park Trust Measure M Measure W
Special Revenue Funds
125

CITY OF REDONDO BEACH
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Notes and loans
Accrued interest
Leases
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Deferred leases related items
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Housing and community development
Public safety
Public works
Debt service
Low and moderate income housing
Assigned to:

Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

$ 7,443,909 $ 831 $ 633,994 $ 1,217,121
122,452 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
3,866,527 - - -
- - - -
$ 11,432,888 $ 831 $ 633,994 $ 1,217,121
$ 324,326 $ - $ - $ -
- - - -
324,326 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
11,108,562 831 633,994 1,217,121
- - - -
11,108,562 831 633,994 1,217,121
$ 11,432,888 $ 831 $ 633,994 $ 1,217,121
Major Facilities
Reconstruction
Open Space
Acquisition
Capital
Improvement
Projects
Pier Parking
Structure
Rehabilitation
Capital Projects Funds
126

CITY OF REDONDO BEACH
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Assets:

Pooled cash and investments
Receivables:

Accounts
Taxes
Notes and loans
Accrued interest
Leases
Due from other governments
Due from other funds
Restricted assets:

Cash and investments with fiscal agents
Total Assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances:

Liabilities:

Accounts payable
Due to other funds
Total Liabilities
Deferred Inflows of Resources:

Unavailable revenues
Deferred leases related items
Total Deferred Inflows of Resources
Fund Balances:

Restricted for:

Housing and community development
Public safety
Public works
Debt service
Low and moderate income housing
Assigned to:

Capital projects
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances

$ 3,889,712 $ 6,146 $ 34,544,676
3,743 - 130,167
- - 455,805
- - 326,227
1,419 41 57,424
1,287,795 - 1,287,795
5,158,621 - 5,417,381
544,986 - 4,411,513
57,324 - 57,324
$ 10,943,600 $ 6,187 $ 46,688,312
$ 36,625 $ - $ 1,388,367
4,268,178 - 5,018,206
4,304,803 - 6,406,573
- - 538,428
1,269,597 1,269,597
1,269,597 - 1,808,025
- - 12,406,540
- - 495,635
- - 5,906,803
5,369,200 6,187 5,375,387
- - 1,356,801
- - 12,960,508
- - (27,960)
5,369,200 6,187 38,473,714
$ 10,943,600 $ 6,187 $ 46,688,312
Total Other
Governmental
Funds
Public
Financing
Authority
Parking
Authority
Debt Service Funds
127

CITY OF REDONDO BEACH
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes $ - $ - $ - $ -
Intergovernmental 3,326,711 - - 1,747,512
Charges for services - 20,000 - -
Use of money and property 36,699 - 164 28,275
Fines and forfeitures - - 6,000 -
Miscellaneous 13,578 - - -
Total Revenues 3,376,988 20,000 6,164 1,775,787
Expenditures:

Current:

General government - - - -
Public safety - - 158,869 -
Housing and community development - - - -
Culture and leisure services - - - -
Public works 1,714,699 - - -
Capital outlay 1,970,359 - 26,048 -
Debt service:

Principal retirement - - 23,870 -
Interest and fiscal charges - - 1,479 -
Total Expenditures 3,685,058 - 210,266 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures (308,070) 20,000 (204,102) 1,775,787 Other Financing Sources (Uses):

Transfers in - - - -
Transfers out - - - (1,510,726)
Subscription financing - - 118,410 -
Total Other Financing Sources (Uses): - - 118,410 (1,510,726) Net Change in Fund Balances (308,070) 20,000 (85,692) 265,061 Fund Balances, Beginning of Year 3,035,204 79,643 269,009 2,376,476 Fund Balances, End of Year $ 2,727,134 $ 99,643 $ 183,317 $ 2,641,537 State Gas Tax
Parks and
Recreation
Facilities
Narcotic
Seizure /
Forfeiture Proposition A
Special Revenue Funds
128

CITY OF REDONDO BEACH
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Housing and community development
Culture and leisure services
Public works
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Subscription financing
Total Other Financing Sources (Uses):

Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

(CONTINUED)
$ - $ - $ - $ -
1,449,511 1,086,820 - 91,027
- - - -
98,215 46,168 - 749
- - - -
- - - -
1,547,726 1,132,988 - 91,776
- - - -
- - - -
- - - 32,964
566 562 - -
3,900 2,144 - -
4,103,976 1,387,955 - -
- - - -
- - - -
4,108,442 1,390,661 - 32,964
(2,560,716) (257,673) - 58,812
- - - -
- - - -
- - - -
- - - -
(2,560,716) (257,673) - 58,812
6,289,187 2,052,193 (907) 222,675
$ 3,728,471 $ 1,794,520 $ (907) $ 281,487
Special Revenue Funds
Proposition C Measure R
Local
Transportation
Article 3
Air Quality
Improvement
129

CITY OF REDONDO BEACH
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Housing and community development
Culture and leisure services
Public works
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Subscription financing
Total Other Financing Sources (Uses):

Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

$ - $ - $ - $ -
- - 163,840 -
33,660 1,512,590 - 339
- - - -
- - - -
- 4,914 - 17,630
33,660 1,517,504 163,840 17,969
- - - -
- - - 16,854
- - 84,235 -
- - - -
- 2,676,692 - 500
258,592 - 37,804 -
- - - -
- - - -
258,592 2,676,692 122,039 17,354
(224,932) (1,159,188) 41,801 615
- 1,272,508 - -
- - - -
- - - -
- 1,272,508 - -
(224,932) 113,320 41,801 615
459,347 - (68,854) 311,703
$ 234,415 $ 113,320 $ (27,053) $ 312,318
Special Revenue Funds
Street
Landscaping
and Lighting
District
Community
Development
Block Grant
Disaster
Recovery
Storm Drain
Improvement
130

CITY OF REDONDO BEACH
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Housing and community development
Culture and leisure services
Public works
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Subscription financing
Total Other Financing Sources (Uses):

Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

(CONTINUED)
$ - $ - $ - $ -
7,338,128 - 1,229,425 718,133
- - - -
2,073 - 54,697 -
- - - -
- 2,087,500 - -
7,340,201 2,087,500 1,284,122 718,133
- - - -
- - - -
7,564,464 - - -
- - - -
- - - 213,364
- 415,372 2,569,079 14,879
- - - -
- - - -
7,564,464 415,372 2,569,079 228,243
(224,263) 1,672,128 (1,284,957) 489,890
- - - -
- - - -
- - - -
- - - -
(224,263) 1,672,128 (1,284,957) 489,890
1,581,064 2,075,434 3,394,608 345,713
$ 1,356,801 $ 3,747,562 $ 2,109,651 $ 835,603
Measure M Measure W
Housing
Authority
Subdivision
Park Trust
Special Revenue Funds
131

CITY OF REDONDO BEACH
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Housing and community development
Culture and leisure services
Public works
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Subscription financing
Total Other Financing Sources (Uses):

Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

$ 185,457 $ - $ - $ -
812,381 - - -
314,043 - - -
- - - -
- - - -
8,000 - - -
1,319,881 - - -
- - - 3,257
- - - -
- - - -
- - - -
158,495 - - -
3,304,922 - 19,220 82,198
- - - -
- - - -
3,463,417 - 19,220 85,455
(2,143,536) - (19,220) (85,455)
- - - -
- - - -
- - - -
- - - -
(2,143,536) - (19,220) (85,455)
13,252,098 831 653,214 1,302,576
$ 11,108,562 $ 831 $ 633,994 $ 1,217,121
Capital
Improvement
Projects
Pier Parking
Structure
Rehabilitation
Major Facilities
Reconstruction
Open Space
Acquisition
Capital Project Funds
132

CITY OF REDONDO BEACH
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
Year Ended June 30, 2023
Revenues:

Taxes
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Total Revenues
Expenditures:

Current:

General government
Public safety
Housing and community development
Culture and leisure services
Public works
Capital outlay
Debt service:

Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):

Transfers in
Transfers out
Subscription financing
Total Other Financing Sources (Uses):

Net Change in Fund Balances
Fund Balances, Beginning of Year
Fund Balances, End of Year

Total Other
Governmental
Funds
$ - $ - $ 185,457
- - 17,963,488
- - 1,880,632
713,924 126 981,090
- - 6,000
- - 2,131,622
713,924 126 23,148,289
- - 3,257
- - 175,723
405,981 - 8,087,644
- - 1,128
- - 4,769,794
- - 14,190,404
7,148,148 - 7,172,018
5,914,848 - 5,916,327
13,468,977 - 40,316,295
(12,755,053) 126 (17,168,006)
13,089,301 - 14,361,809
- - (1,510,726)
- - 118,410
13,089,301 - 12,969,493
334,248 126 (4,198,513)
5,034,952 6,061 42,672,227
$ 5,369,200 $ 6,187 $ 38,473,714
Debt Service Funds
Public
Financing
Authority
Parking
Authority
133
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138

CITY OF REDONDO BEACH
Budgetary Comparison Schedule
Measure R
Year ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $2,052,193 $ 2,052,193 $ 2,052,193 $ - Resources (Inflows):

Intergovernmental 1,009,052 1,009,052 1,086,820 77,768
Use of money and property 15,000 15,000 46,168 31,168
Amounts Available for Appropriations 3,076,245 3,076,245 3,185,181 108,936 Charges to Appropriation (Outflow):

Culture and leisure services - 562 562 -
Public works - 2,144 2,144 -
Capital outlay 1,135,000 2,850,046 1,387,955 1,462,091
Total Charges to Appropriations 1,135,000 2,852,752 1,390,661 1,462,091 Budgetary Fund Balance, June 30 $1,941,245 $ 223,493 $ 1,794,520 $ 1,571,027 139
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140

CITY OF REDONDO BEACH
Budgetary Comparison Schedule
Air Quality Improvement
Year ended June 30, 2023
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 222,675 $ 222,675 $ 222,675 $ - Resources (Inflows):

Intergovernmental 88,000 88,000 91,027 3,027
Use of money and property 2,000 2,000 749 (1,251)
Transfers in 45 45 - (45)
Amounts Available for Appropriations 312,720 312,720 314,451 1,731 Charges to Appropriation (Outflow):

Housing & community development 69,499 66,022 32,964 33,058 Capital outlay - 41,400 - 41,400
Debt service:

Principal retirement 1,919 1,919 - 1,919
Interest and fiscal charges 1,420 1,420 - 1,420
Total Charges to Appropriations 72,838 110,761 32,964 77,797 Budgetary Fund Balance, June 30 $ 239,882 $ 201,959 $ 281,487 $ 79,528 141
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CITY OF REDONDO BEACH
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2023
Totals
Assets:

Current:

Cash and investments $ 2,168,566 $ 156,760 $ 2,325,326
Receivables:

Accounts 323,594 1,381 324,975
Taxes 99,634 - 99,634
Due from other governments - 1,478,449 1,478,449
Total Current Assets 2,591,794 1,636,590 4,228,384
Noncurrent:

Capital assets - net of accumulated depreciation 15,439 1,410,174 1,425,613 Total Noncurrent Assets 15,439 1,410,174 1,425,613
Total Assets 2,607,233 3,046,764 5,653,997
Deferred Outflows of Resources:

Deferred pension related items 470,433 378,790 849,223
Deferred OPEB related items 33,115 28,573 61,688
Total Deferred Outflows of Resources 503,548 407,363 910,911 Liabilities:

Current:

Accounts payable 446,748 673,103 1,119,851
Accrued interest 5,087 4,451 9,538
Uneared revenues 42,218 1,494 43,712
Due to other funds - 922,643 922,643
Accrued compensated absences 10,606 25,812 36,418
Long-term debt - due within one year 42,336 37,044 79,380 Total Current Liabilities 546,995 1,664,547 2,211,542
Noncurrent:

Accrued compensated absences 31,817 77,427 109,244
Accrued claims and judgments - - -
Long-term debt - due in more than one year 1,182,104 1,034,341 2,216,445 Net pension liability 198,429 159,774 358,203
Net OPEB liability 109,315 94,322 203,637
Total Noncurrent Liabilities 1,521,665 1,365,864 2,887,529 Total Liabilities 2,068,660 3,030,411 5,099,071
Deferred Inflows of Resources:

Deferred pension related items 60,249 48,512 108,761
Deferred OPEB related items 40,165 34,656 74,821
Total Deferred Inflows of Resources 100,414 83,168 183,582 Net Position:

Net investment in capital assets 15,439 1,410,174 1,425,613 Unrestricted 926,268 (1,069,626) (143,358)
Total Net Position $ 941,707 $ 340,548 $ 1,282,255
Solid Waste
Business-Type Activities - Enterprise Funds
Transit
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157

CITY OF REDONDO BEACH
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Assets:

Current:

Cash and investments $ 10,683,224 $ 2,881,350 $ 2,089,732 Receivables:

Accounts 63,266 - -
Prepaid costs - - 11,910
Total Current Assets 10,746,490 2,881,350 2,101,642
Noncurrent:

Capital assets - net of accumulated depreciation 5,819,495 135,086 1,356,568 Total Noncurrent Assets 5,819,495 135,086 1,356,568
Total Assets 16,565,985 3,016,436 3,458,210
Deferred Outflows of Resources:

Deferred pension related items 349,633 764,291 736,861
Deferred OPEB related items 27,461 56,528 52,576
Total Deferred Outflows of Resources 377,094 820,819 789,437 Liabilities:

Current:

Accounts payable 227,941 230,534 114,412
Accrued interest 7,796 10,538 11,228
Accrued compensated absences 8,195 22,384 18,287
Accrued claims and judgments - - -
Long-term debt - due within one year 82,653 87,696 141,511 Total Current Liabilities 326,585 351,152 285,438
Noncurrent:

Accrued compensated absences 24,585 67,152 54,863
Accrued claims and judgments - - -
Long-term debt - due in more than one year 1,273,340 2,448,644 2,470,156 Net pension liability 147,476 322,379 310,808
Net OPEB liability 90,652 186,608 173,560
Total Noncurrent Liabilities 1,536,053 3,024,783 3,009,387 Total Liabilities 1,862,638 3,375,935 3,294,825
Deferred Inflows of Resources:

Deferred pension related items 44,778 97,883 94,370
Deferred OPEB related items 33,308 68,565 63,771
Total Deferred Inflows of Resources 78,086 166,448 158,141 Net Position:

Net investment in capital assets 5,582,887 135,086 1,259,376 Unrestricted 9,419,468 159,786 (464,695)
Total Net Position $ 15,002,355 $ 294,872 $ 794,681
Vehicle
Replacement
Building
Occupancy
Information
Technology
Governmental Activities - Internal Service Funds
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159

CITY OF REDONDO BEACH
Combining Statement of Revenues, Expenses
and Changes in Net Position
Internal Service Funds
Year Ended June 30, 2023
Operating Revenues:

Sales and service charges $ 3,977,986 $ 3,684,113 $ 3,695,264 Miscellaneous 224,301 - 10
Total Operating Revenues 4,202,287 3,684,113 3,695,274
Operating Expenses:

Administration and general 1,426,076 1,346,414 625,460
Personnel services 697,532 1,152,405 1,178,104
Contractual services 65,243 292,543 1,540,413
Internal service charges 347,398 421,424 696,966
Depreciation amd amortization expense 1,066,247 11,750 141,476 Total Operating Expenses 3,602,496 3,224,536 4,182,419
Operating Income (Loss) 599,791 459,577 (487,145)
Nonoperating Revenues (Expenses):

Interest expense (34,263) (65,164) (66,935)
Gain (loss) on disposal of capital assets 17,785 - -
Total Nonoperating
Revenues (Expenses) (16,478) (65,164) (66,935)
Income (Loss) Before Transfers 583,313 394,413 (554,080) Transfers in 133 135 902
Transfers out (6) (77) -
Changes in Net Position 583,440 394,471 (553,178)
Net Position:

Beginning of Year 14,418,915 (99,599) 1,347,859
End of Fiscal Year $ 15,002,355 $ 294,872 $ 794,681
Governmental Activities - Internal Service Funds
Vehicle
Replacement
Building
Occupancy
Information
Technology
160

CITY OF REDONDO BEACH
Combining Statement of Revenues, Expenses
and Changes in Net Position
Internal Service Funds
Year Ended June 30, 2023
Operating Revenues:

Sales and service charges
Miscellaneous
Total Operating Revenues
Operating Expenses:

Administration and general
Personnel services
Contractual services
Internal service charges
Depreciation amd amortization expense
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):

Interest expense
Gain (loss) on disposal of capital assets
Total Nonoperating
Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Transfers out
Changes in Net Position
Net Position:

Beginning of Year
End of Fiscal Year
Totals
$ 8,602,706 $ 3,321,707 $ 110,546 $ 23,392,322
- - - 224,311
8,602,706 3,321,707 110,546 23,616,633
7,148,937 58,019 - 10,604,906
8,004 3,351,865 - 6,387,910
191,255 416,500 - 2,505,954
332,973 382,681 - 2,181,442
- 230,330 22,691 1,472,494
7,681,169 4,439,395 22,691 23,152,706
921,537 (1,117,688) 87,855 463,927
(4,622) (90,747) - (261,731)
- - - 17,785
(4,622) (90,747) - (243,946)
916,915 (1,208,435) 87,855 219,981
177 1,049 - 2,396
- (22,403) - (22,486)
917,092 (1,229,789) 87,855 199,891
(11,254,483) 4,388,646 1,408,989 10,210,327
$ (10,337,391) $ 3,158,857 $ 1,496,844 $ 10,410,218
Major Facilities
Repair
Governmental Activities - Internal Service Funds
Self-Insurance
Program
Emergency
Communications
161

CITY OF REDONDO BEACH
Combining Statement of Cash Flows
Internal Service Funds
Year ended June 30, 2023
Cash Flows from Operating Activities:

Cash received from customers and users $ 4,190,551 $ 3,684,113 $ 3,695,274 Cash paid to suppliers for goods and services (1,737,617) (2,290,548) (2,873,772) Cash paid to employees for services (565,717) (1,165,259) (1,135,031) Net Cash Provided (Used) by Operating Activities 1,887,217 228,306 (313,529) Cash Flows from Non-Capital
Financing Activities:

Principal paid on non-capital debt 129,585 (87,348) 59,959 Interest paid on non-capital debt (31,256) (65,164) (64,266) Net Cash Provided (Used) by
Non-Capital Financing Activities 98,456 (152,454) (3,405) Cash Flows from Capital
and Related Financing Activities:

Acquisition and construction of capital assets (1,168,570) - (589,634) Principal paid on capital debt (40,200) - (49,362)
Interest paid on capital debt (298) - (1,888)
Proceeds from sale of capital assets 18,029 - -
Net Cash Provided (Used) by
Capital and Related Financing Activities (1,191,039) - (640,884) Net Increase (Decrease) in Cash
and Cash Equivalents 794,634 75,852 (957,818)
Cash and Cash Equivalents at Beginning of Year 9,888,590 2,805,498 3,047,550 Cash and Cash Equivalents at End of Year $ 10,683,224 $ 2,881,350 $ 2,089,732 Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss) $ 599,791 $ 459,577 $ (487,145) Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:

Depreciation and amortization 1,066,247 11,750 141,476
(Increase) decrease in accounts receivable (11,736) - - (Increase) decrease in deferred outflow pension related items 917,068 1,887,026 1,875,737 (Increase) decrease in deferred outflow OPEB related items (2,002) (3,117) 2,369 (Increase) decrease in prepaid expense - - (4,915)
Increase (decrease) in accounts payable 87,018 (256,141) (14,329) Increase (decrease) in claims and judgments - - -
Increase (decrease) in net pension liability (506,351) (1,262,922) (1,127,292) Increase (decrease) in net OPEB liability 14,082 25,974 8,311 Increase (decrease) in deferred inflow pension related items (267,093) (658,294) (591,594) Increase (decrease) in deferred inflow OPEB related items (16,012) (34,902) (42,668) Increase (decrease) in compensated absences 6,205 59,355 (73,479) Total Adjustments 1,287,426 (231,271) 173,616
Net Cash Provided (Used) by
Operating Activities $ 1,887,217 $ 228,306 $ (313,529)
Non-Cash Investing, Capital, and Financing Activities:

Subscription financing - - -
Subscription assets acquired - - -
Governmental Activities - Internal Service Funds
Vehicle
Replacement
Building
Occupancy
Information
Technology
162

CITY OF REDONDO BEACH
Combining Statement of Cash Flows
Internal Service Funds
Year ended June 30, 2023
Cash Flows from Operating Activities:

Principal paid on non-capital debt
Interest paid on non-capital debt
Net Cash Provided (Used) by
Non-Capital Financing Activities
Cash Flows from Capital
and Related Financing Activities:

Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sale of capital assets
Net Cash Provided (Used) by
Capital and Related Financing Activities
Net Increase (Decrease) in Cash
and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities:

Operating income (loss)
Adjustments to reconcile operating income (loss)
net cash provided (used) by operating activities:

Depreciation and amortization
(Increase) decrease in accounts receivable
(Increase) decrease in deferred outflow pension related items (Increase) decrease in deferred outflow OPEB related items (Increase) decrease in prepaid expense
Increase (decrease) in accounts payable
Increase (decrease) in claims and judgments
Increase (decrease) in net pension liability
Increase (decrease) in net OPEB liability
Increase (decrease) in deferred inflow pension related items Increase (decrease) in deferred inflow OPEB related items Increase (decrease) in compensated absences
Total Adjustments
Net Cash Provided (Used) by
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:

Subscription financing
Subscription assets acquired
Totals
$ 8,602,706 $ 3,321,708 $ 290,907 $ 23,785,259
(9,126,400) (780,821) - (16,809,158)
(324,410) (1,872,570) - (5,062,987)
(848,104) 668,317 290,907 1,913,114
(6,024) (120,480) - (24,308)
(4,622) (90,747) - (256,055)
(10,469) (232,581) - (300,453)
(101,370) - (229,972) (2,089,546)
- - - (89,562)
- - - (2,186)
- - - 18,029
(101,370) - (229,972) (2,163,265)
(959,943) 435,736 60,935 (550,604)
14,372,500 5,301,641 982,828 36,398,607
$ 13,412,557 $ 5,737,377 $ 1,043,763 $ 35,848,003
$ 921,537 $ (1,117,688) $ 87,855 $ 463,927
- 230,331 22,691 1,472,495
- - - (11,736)
82,630 3,017,995 - 7,780,456
(1,741) 833 - (3,658)
- - - (4,915)
1,665,384 61,490 180,361 1,723,783
(3,316,793) - - (3,316,793)
(132,587) (1,132,710) - (4,161,862)
6,919 14,889 - 70,175
(71,170) (379,251) - (1,967,402)
(787) (44,518) - (138,887)
(1,496) 16,946 - 7,531
(1,769,641) 1,786,005 203,052 1,449,187
$ (848,104) $ 668,317 $ 290,907 $ 1,913,114
- - - -
- - - -
Governmental Activities - Internal Service Funds
Self-Insurance
Program
Emergency
Communications
Major Facilities
Repair
163
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165
City of Redondo Beach
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015 * 2016 2017 2018
Governmental Activities:

Net investment in capital assets 138,614,141 $ 139,555,634 $ 135,628,091 $ 139,053,697 $ 147,515,377 $ Restricted 19,059,951 16,503,649 26,346,341 22,833,987 24,348,682 Unrestricted 28,918,308 (85,699,247) (81,186,849) (83,567,317) (118,477,214) Total governmental activities net position 186,592,400 70,360,036 80,787,583 78,320,367 53,386,845 Business-type activities:

Net investment in capital assets 36,646,484 37,629,261 37,542,589 37,169,598 43,285,102 Restricted - - - - -
Unrestricted 27,250,666 18,257,918 24,136,647 28,549,056 24,562,294 Total business-type activities net position 63,897,150 55,887,179 61,679,236 65,718,654 67,847,396 Primary government:

Net investment in capital assets 175,260,625 177,184,895 173,170,680 176,223,295 190,800,479 Restricted 19,059,951 16,503,649 26,346,341 22,833,987 24,348,682 Unrestricted 56,168,974 (67,441,329) (57,050,202) (55,018,261) (93,914,920) Total primary government net position $ 250,489,550 $ 126,247,215 $ 142,466,819 $ 144,039,021 $ 121,234,241 NOTE: * In FY 2014-2015, GASB Statement 68 was implemented and contributed to the decrease in net Source: City of Redondo Beach Comprehensive Annual Financial Report, Government-Wide Financial Fiscal Year
167
City of Redondo Beach
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2019 2020 2021 2022 2023
Governmental Activities:

Net investment in capital assets $ 149,571,518 $ 155,670,310 $ 164,993,054 $ 146,082,092 $ 189,024,081 Restricted 36,179,269 29,323,216 27,392,685 31,365,112 29,038,880 Unrestricted (150,061,607) (169,266,411) (175,501,877) (134,974,819) (163,871,388) Total governmental activities net position 35,689,180 15,727,115 16,883,862 42,472,385 54,191,573 Business-type activities:

Net investment in capital assets 44,986,964 58,077,077 59,334,911 60,441,156 66,054,613 Restricted - - - - -
Unrestricted 23,360,854 18,858,253 16,913,909 18,369,052 16,395,109 Total business-type activities net position 68,347,818 76,935,330 76,248,820 78,810,208 82,449,722 Primary government:

Net investment in capital assets 194,558,482 213,747,387 224,327,965 206,523,248 255,078,694 Restricted 36,179,269 29,323,216 27,392,685 31,365,112 29,038,880 Unrestricted (126,700,753) (150,408,158) (158,587,968) (116,605,767) (147,476,279) Total primary government net position $ 104,036,998 $ 92,662,445 $ 93,132,682 $ 121,282,593 $ 136,641,295 ()
Fiscal Year
168
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015 2016 2017 2018
Expenses
Government activities:

General government $ 10,177,409 $ 10,293,394 $ 10,946,935 $ 10,846,646 $ 14,142,348 Public Safety 44,022,014 47,331,250 46,362,851 55,489,827 60,845,022 Housing and community development 10,115,114 9,229,689 8,936,256 9,769,288 11,797,299 Cultural and leisure services 10,042,640 10,990,481 11,556,891 12,496,716 14,539,255 Public works 11,817,281 15,500,144 12,616,719 14,135,326 16,496,964 Interest on long-term debt 194,200 152,348 124,522 80,782 51,658 Total governmental activities expenses 86,368,658 93,497,306 90,544,174 102,818,585 117,872,546 Business-type activities:

Harbor Tidelands 5,040,308 5,279,836 5,652,988 6,395,134 7,035,921 Harbor Uplands 4,051,432 4,230,371 4,469,890 4,479,269 3,224,093 Wastewater 2,557,592 2,022,271 2,144,353 2,917,527 3,667,593 Solid Waste 3,580,040 3,506,271 3,763,513 3,973,666 3,968,186 Transit 3,346,989 3,366,535 3,536,593 3,626,075 3,844,008 Total business-type activities expenses 18,576,361 18,405,284 19,567,337 21,391,671 21,739,801 Total primary government expenses 104,945,019 111,902,590 110,111,511 124,210,256 139,612,347 Component Units:

Program Revenues
Governmental activities:

Charges for Services:

General government 7,539,299 9,083,395 8,689,834 8,570,506 8,305,869 Public Safety 4,942,725 4,611,279 4,503,948 4,764,211 5,310,033 Housing and community development 2,858,612 2,681,729 2,160,284 3,577,756 3,458,586 Cultural and leisure services 5,942,540 6,733,424 6,606,802 5,837,816 6,709,262 Public works 2,386,890 2,154,679 2,334,537 2,579,475 2,459,268 Operating grants and contributions 8,052,877 8,170,736 8,135,187 8,563,072 8,090,195 Capital grants and contributions 294,342 2,310,026 912,045 492,146 1,872,910 Total governmental activities program revenues 32,017,285 35,745,268 33,342,637 34,384,982 36,206,123 Fiscal Year
169
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Government activities:

General government
Public Safety
Housing and community development
Cultural and leisure services
Public works
Interest on long-term debt
Total governmental activities expenses
Business-type activities:

Harbor Tidelands
Harbor Uplands
Wastewater
Solid Waste
Transit
Total business-type activities expenses
Total primary government expenses
Component Units:

Program Revenues
Governmental activities:

Charges for Services:

General government
Public Safety
Housing and community development
Cultural and leisure services
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
2019 2020 2021 2022 2023
$ 12,380,308 $ 13,574,385 $ 11,692,177 $ 10,676,673 $ 8,875,247 62,740,166 71,807,026 68,527,338 50,336,195 77,329,726
11,460,619 11,456,603 11,119,995 12,241,640 10,119,877
12,296,505 11,810,514 10,033,842 11,259,954 11,227,624
14,655,265 15,373,701 14,439,178 17,327,400 11,459,350
641,587 1,272,259 1,117,677 7,161,637 6,046,346
114,174,450 125,294,488 116,930,207 109,003,499 125,058,170 9,433,807 9,067,251 4,636,895 7,593,555 6,414,101
5,016,104 4,707,797 5,898,608 5,671,184 3,877,153
3,406,302 3,809,885 3,319,536 2,766,293 4,852,027
4,690,425 4,894,581 5,115,305 5,270,585 5,627,344
4,004,654 3,975,884 4,440,739 4,437,245 5,819,936
26,551,292 26,455,398 23,411,083 25,738,862 26,590,561
140,725,742 151,749,886 140,341,290 134,742,361 151,648,731 9,769,717 10,699,014 10,760,125 17,442,962 11,449,964
5,766,102 4,922,828 6,414,431 6,389,408 5,214,506
3,491,863 3,189,541 3,274,369 3,426,571 5,923,067
7,283,873 6,609,840 6,182,448 7,840,440 10,742,331
2,737,458 2,297,396 3,447,892 2,420,262 2,953,076
10,151,972 10,326,680 14,547,505 14,317,249 16,501,962
485,693 2,882,105 2,285,961 7,786,097 3,088,905
39,686,678 40,927,404 46,912,731 59,622,989 55,873,811
()
Fiscal Year
170
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015 2016 2017 2018
Fiscal Year
Business-type activities:

Charges for services:

Harbor Tidelands $ 5,870,760 $ 6,526,625 $ 6,483,927 $ 6,694,914 $ 6,565,619 Harbor Uplands 4,311,358 4,585,998 5,314,448 5,378,886 5,267,564 Wastewater 4,568,330 5,433,185 5,618,086 5,546,090 5,575,855 Solid Waste 3,369,217 3,569,336 3,832,166 3,792,964 3,836,976 Transit 352,756 360,519 366,314 344,071 336,962
Operating grants and contributions 1,754,397 1,848,671 2,200,958 1,888,902 2,247,490 Capital grants and contributions - - - - -
Total business-type activities program revenues 20,226,818 22,324,334 23,815,899 23,645,827 23,830,466 Total primary government program revenues 52,244,103 58,069,602 57,158,536 58,030,809 60,036,589 Net (expense)/revenue
Governmental activities (57,752,038) (54,351,373) (57,201,537) (68,433,603) (81,666,423) Business-type activities 3,919,050 1,650,457 4,248,562 2,254,156 2,090,665 Total primary government net expense (53,832,988) (52,700,916) (52,952,975) (66,179,447) (79,575,758) General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes, levied for general purpose 30,175,663 31,424,789 32,766,493 34,375,818 36,847,562 Transient occupancy taxes 3,970,786 4,464,811 8,627,801 7,689,889 9,172,934 Sales taxes 10,450,402 11,889,190 12,347,884 10,059,087 10,185,208 Franchise taxes 1,973,182 1,981,936 1,963,752 1,706,371 1,896,809 Business licenses taxes 1,296,531 1,178,016 1,186,567 1,201,068 1,322,333 Utility users taxes 7,412,250 7,664,385 7,411,930 7,085,063 6,928,129 Other taxes 1,840 5,149 731,571 - 632,084
Motor vehicle in lieu 28,894 27,910 27,475 31,132 36,272 Investment earnings 1,251,129 1,069,970 1,184,588 3,038,633 3,134,966 Other revenues 1,885,242 2,271,960 2,826,066 1,521,902 1,407,243 Gain (loss) on sale of capital assets 12,657 27,676 71,254 - - Special item - - - - -
Transfers (1,350,534) (1,462,139) (784,726) (1,474,147) (1,106,621) Gain (loss) on dissolution of Redevelopment Agency - - - - - Total governmental activities 57,108,042 60,543,653 67,629,084 65,966,387 70,456,919 Business-type activities:

Investment earnings 237,235 331,919 450,632 99,085 237,280 Gain (loss) on sale of capital assets (79,277) - 11,868 5,606 - Other revenues 400,396 375,982 296,269 206,424 282,370
Special item - - - - -
Transfers 1,350,534 1,462,139 784,726 1,474,147 1,106,621 Total business-type activities 2,075,356 2,003,572 1,543,495 1,785,262 1,626,271 Total primary government 59,111,614 62,619,009 69,172,579 67,751,649 72,083,190 Change in Net Position
Governmental activities 2,791,615 2,756,669 10,427,547 (2,467,216) (11,209,504) Business-type activities 5,994,406 3,654,029 5,792,057 4,039,418 3,716,936 Totally primary government $ 8,786,021 6,410,698 $ 16,219,604 $ 1,572,202 $ $ (7,492,568) Source: City of Redondo Beach Comprehensive Annual Financial Report, Government-Wide Financial Statements 171
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Business-type activities:

Charges for services:

Harbor Tidelands
Harbor Uplands
Wastewater
Solid Waste
Transit
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
Net (expense)/revenue
Governmental activities
Business-type activities
Total primary government net expense
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Utility users taxes
Other taxes
Motor vehicle in lieu
Investment earnings
Other revenues
Gain (loss) on sale of capital assets
Special item
Transfers
Gain (loss) on dissolution of Redevelopment Agency
Total governmental activities
Business-type activities:

Investment earnings
Gain (loss) on sale of capital assets
Other revenues
Special item
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Totally primary government
Source: City of Redondo Beach Comprehensive Annual Financial Report, Government-Wide 2019 2020 2021 2022 2023
()
Fiscal Year
$ 5,729,264 6,714,763 $ 4,816,599 $ 7,611,643 $ $ 7,624,821 6,129,658 4,886,188 4,945,241 6,239,484 5,754,907
5,419,215 5,523,009 5,487,873 5,417,916 5,433,482
3,965,662 4,330,439 4,780,684 5,549,427 6,141,657
338,835 250,758 - 280 165,196
2,362,021 2,958,743 2,853,567 4,291,625 4,191,328
- - - - -
24,930,154 23,678,401 22,883,964 29,110,375 29,311,391
64,605,805 64,616,832 69,796,695 88,733,364 85,185,202
(84,367,084) (74,487,772) (70,017,476) (49,380,510) (69,184,359) (1,621,138) (2,776,997) (527,119) 3,371,513 2,720,830
(87,144,081) (76,108,910) (70,544,595) (46,008,997) (66,463,529) 39,774,170 38,249,535 43,705,194 44,424,757 45,649,338
8,816,739 6,335,445 3,400,322 5,419,197 6,174,326
10,578,527 9,716,883 10,018,217 11,813,896 11,036,523
1,647,287 1,706,355 1,731,846 1,864,336 2,131,206
1,295,050 1,251,673 1,211,539 1,193,814 1,301,224
6,757,622 6,824,873 6,713,480 8,024,511 9,166,031
969,721 917,102 1,019,041 1,133,754 1,173,417
32,965 54,193 49,136 77,111 72,000
5,483,218 5,219,501 1,408,878 69,136 3,558,292
2,314,681 1,640,662 1,642,581 714,946 470,103
19,352 - - - 17,785
(18,823,249) (1,595,860) - - -
(7,492,597) (498,722) 273,989 233,575 138,511
- - - - -
56,790,107 64,405,019 71,174,223 74,969,033 80,888,756
1,563,880 1,442,556 (72,233) (576,550) 1,055,954
244 - - - 1,241
180,038 712,172 186,831 - -
- 1,595,860 - - -
498,722 7,492,597 (273,989) (233,575) (138,511)
2,121,560 11,364,509 (159,391) (810,125) 918,684
58,911,667 75,769,528 71,014,832 74,158,908 81,807,440
(17,697,665) (19,962,065) 1,156,747 25,588,523 11,704,397 500,422 8,587,512 (686,510) 2,561,388 3,639,514
$ (17,197,243) $ (11,374,553) $ 470,237 $ 28,149,911 $ 15,343,911 172
City of Redondo Beach
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2015 2016 2017 2018
General fund
Nonspendable $ 82,255 $ 90,836 $ 87,345 $ 1,013,152 $ 93,705 Restricted - - 3,000,000 - -
Committed 6,188,191 6,738,848 7,154,237 7,409,689 7,605,573 Assigned 12,025,746 10,500,675 9,303,536 9,134,516 9,431,007 Unassigned 2,674,597 5,786,193 1,694,671 945,992 653,649 Total general fund 20,970,789 23,116,552 21,239,789 18,503,349 17,783,934 All other governmental funds
Nonspendable 2,952,500 2,749,394 - - -
Nonspendable, reported in:

Special revenue funds - - - - -
Restricted 13,408,799 12,107,627 22,309,801 18,625,842 20,061,786 Restricted, reported in:

Special revenue funds - - - 4,208,145 4,286,896
Debt service funds 6,450,252 6,310,008 - - -
Committed - - - - -
Assigned 6,956,943 6,466,871 2,150,834 2,152,347 2,152,347 Assigned, reported in:

Capital projects funds - - 11,112,946 12,372,901 10,057,599 Special revenue funds - - - - -
Unassigned (99,891) (64,425) (106,954) (66,919) (5,146) Unassigned, reported in:

Special revenue funds (1,551,713) (1,852,352) (1,335,382) (1,453,532) (3,031,772) Capital projects funds - - - - -
Debt service funds - - - - -
Total all other governmental funds $ 28,116,890 $ 25,717,123 $ 34,131,245 $ 35,838,784 $ 33,521,710 Source: City of Redondo Beach Comprehensive Annual Financial Report, Governmental Fund Financial Statements
Fiscal Year
173
City of Redondo Beach
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) ()
2019 2020 2021 2022 2023
General fund
Nonspendable $ 980,737 $ 107,697 $ 89,771 $ 71,426 $ 169,999 Restricted - - -
Committed 7,989,184 7,585,231 7,241,252 8,599,208 8,599,208 Assigned 10,999,817 9,149,145 8,908,619 20,421,828 24,228,260 Unassigned 753,238 704,067 2,039,523 271,557 190,951
Total general fund 20,722,976 17,546,140 18,279,165 29,364,019 33,188,418 All other governmental funds
Nonspendable - - - - -
Nonspendable, reported in:

Special revenue funds - - - - -
Restricted 17,751,026 25,180,005 23,255,534 22,498,317 25,541,166 Restricted, reported in:

Special revenue funds 4,296,752 4,143,211 4,137,151 3,841,655 3,497,714 Debt service funds 14,131,491 - - 5,025,140 -
Committed - - - - -
Assigned 2,352,347 9,708,041 8,013,238 15,208,719 12,960,508 Assigned, reported in:

Capital projects funds 9,158,315 - - - -
Special revenue funds - - - - -
Unassigned (403) (878,585) (310,276) (69,761) (27,960)
Unassigned, reported in:

Special revenue funds (2,974,945) (2,679,430) (4,008,147) (6,858,755) (6,053,354) Capital projects funds - - - - -
Debt service funds - - - - -
Total all other governmental funds $ 44,714,583 $ 35,473,242 $ 31,087,500 $ 39,645,315 $ 35,918,074 Fiscal Year
174
City of Redondo Beach
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2015 2016 2017 2018
Revenues:

Taxes $ 58,603,127 55,958,439 $ 64,304,427 $ 62,848,867 $ $ 67,323,695 Interdepartmental 7,143,371 7,588,928 8,176,790 8,292,178 8,170,297 Licenses and permits 1,504,502 1,333,512 1,701,786 1,755,119 1,801,502 Intergovernmental 11,096,634 14,091,278 12,259,088 12,359,047 12,574,428 Charges for services 8,401,697 8,511,455 9,618,003 9,128,589 9,732,500 Use of money and property 2,499,563 2,795,350 3,113,269 3,038,633 3,134,966 Fines and forfeitures 1,836,166 1,960,083 1,645,777 1,523,928 1,368,615 Other revenues 1,816,196 2,147,500 2,678,261 2,540,369 2,498,976 Total Revenues 90,256,568 97,031,233 103,497,401 101,486,730 106,604,979 Expenditures:

Current:

General government 9,157,309 9,757,869 10,189,258 10,535,983 9,920,879 Public safety 43,653,885 48,274,212 50,019,597 52,875,881 57,451,797 Housing and community development 9,116,267 8,883,086 9,546,763 9,759,833 10,156,777 Cultural and leisure services 8,789,002 10,023,420 11,001,375 11,265,379 11,598,804 Public works 9,362,140 10,325,935 11,198,389 11,235,682 11,016,488 Capital outlay 1,248,965 7,382,451 3,235,047 4,682,977 7,442,754 Debt service:

Principal 665,000 695,000 715,000 745,000 775,000
Interest 240,736 187,296 152,896 121,999 89,856
Debt issuance costs - - - - -
Total Expenditures 82,233,304 95,529,269 96,058,325 101,222,734 108,452,355 Excess of Revenues Over (Under) Expenditures 8,023,264 1,501,964 7,439,076 263,996 (1,847,376) Other Financing Sources (Uses):

Transfers in 2,768,840 1,394,604 8,464,353 4,031,647 2,326,416 Transfers out (4,160,973) (3,150,572) (9,366,070) (5,324,544) (3,372,317) Leases - - - - -
Refunding bonds issued - - - - -
Other debts issued - - - - -
Bond premium - - - - -
Refunding bonds redeemed - - - - -
Gain (loss) on Redevelopment Agency dissolution - - - - - Total Other Financing Sources (Uses) (1,392,133) (1,755,968) (901,717) (1,292,897) (1,045,901) Special item - - - - -
Net Change in Fund Balances $ 6,631,131 $ (254,004) $ 6,537,359 $ (1,028,901) $ (2,893,277) Debt service as a percentage of noncapital expenditures 1.13% 1.01% 0.94% 0.91% 0.86% Changes in Fund Balances of Governmental Funds
Fiscal Year
Source: City of Redondo Beach Comprehensive Annual Financial Report, Government-Wide Financial Statements
175
City of Redondo Beach
Last Ten Fiscal Years
(modified accrual basis of accounting)
2019 2020 2021 2022 2023
Revenues:

Taxes $ 66,579,120 68,325,779 $ 67,799,639 $ 73,874,265 $ $ 76,632,065 Interdepartmental 8,503,283 9,417,289 9,379,851 10,034,053 8,745,517 Licenses and permits 1,555,407 1,503,909 1,641,684 1,731,398 2,607,527 Intergovernmental 15,303,534 18,215,129 19,252,605 29,628,555 26,443,713 Charges for services 8,851,688 10,211,917 8,482,823 10,895,140 11,805,303 Use of money and property 5,483,218 5,219,501 1,408,878 69,136 3,558,292 Fines and forfeitures 1,489,424 1,163,678 1,331,574 1,247,572 1,347,895 Other revenues 5,049,393 3,835,968 6,194,701 3,727,529 6,049,378 Total Revenues 115,921,955 114,786,282 115,491,755 131,207,648 137,189,690 Expenditures:

Current:

General government 11,546,126 12,701,080 11,365,610 24,894,820 11,874,752 Public safety 58,235,693 61,281,401 60,812,252 209,643,074 56,313,610 Housing and community development 11,185,303 11,075,922 10,936,532 16,644,042 11,686,810 Cultural and leisure services 11,997,745 10,466,375 9,364,095 15,492,140 11,603,710 Public works 11,004,195 11,543,612 11,522,810 23,081,641 12,372,547 Capital outlay 5,142,247 19,525,792 13,563,804 14,567,037 20,838,116 Debt service: - - -
Principal 805,000 795,000 555,000 812,926 7,619,104
Interest 412,427 1,322,680 1,095,981 6,046,920 5,937,747 Debt issuance costs - - - - -
Total Expenditures 110,328,736 128,711,862 119,216,084 311,182,600 138,246,396 Excess of Revenues Over (Under) Expenditures 5,593,219 (13,925,580) (3,724,329) (179,974,952) (1,056,706) Other Financing Sources (Uses):

Transfers in 3,701,950 4,918,105 10,407,106 10,782,356 16,012,542 Transfers out (3,607,949) (3,410,702) (10,335,494) (10,548,781) (15,853,941) Leases - - - 2,245,558 980,472
Refunding bonds issued - - - - -
Other debts issued - 28,015,000 - 197,138,488 -
Bond premium (747,056) - - - -
Refunding bonds redeemed - - - - -
Gain (loss) on Redevelopment Agency dissolution - - - - - Total Other Financing Sources (Uses) 27,361,945 1,507,403 71,612 199,617,621 1,139,073 Special item (18,823,249) - - - -
Net Change in Fund Balances $ 14,131,915 $ (12,418,177) $ (3,652,717) $ 19,642,669 $ 82,367 Debt service as a percentage of noncapital expenditures 1.17% 1.98% 1.59% 2.37% 13.05% Changes in Fund Balances of Governmental Funds
Fiscal Year
176
City of Redondo Beach
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Unsecured Exemptions Value
2014 $ 12,119,561,792 $ 479,888,191 $ (86,536,840) $ 12,512,913,143 2015 12,740,467,541 424,217,169 (73,103,981) 13,091,580,729 2016 13,389,390,286 445,897,750 (74,129,707) 13,761,158,329 2017 14,185,826,554 422,121,124 (72,679,071) 14,535,268,607 2018 14,985,005,088 475,749,665 (72,464,646) 15,388,290,107 2019 15,796,994,740 475,845,459 (72,083,515) 16,200,756,684 2020 16,570,567,490 495,949,088 (43,871,304) 17,022,645,274 2021 17,457,397,477 537,895,062 (55,071,992) 17,940,220,547 2022 18,203,914,759 581,594,262 (79,188,547) 18,706,320,474 2023 19,357,977,502 637,683,663 (101,991,595) 19,893,669,570 Source: HdL Coren & Cone, Los Angeles County Auditor-Controller/Tax Division 2022/2023 Combined Tax Rolls In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

City
177
City of Redondo Beach
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Taxable Total
Ended Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Rate
2014 $ 453,832,698 $ 38,326,859 $ (352,000) $ 491,807,557 0.15783 2015 470,317,505 55,967,662 (221,000) 526,064,167 0.15797 2016 481,010,582 48,097,617 - 529,108,199 0.15808
2017 492,828,395 26,806,104 - 519,634,499 0.15834
2018 502,042,344 27,984,358 - 530,026,702 0.15871
2019 522,861,449 26,288,663 - 549,150,112 0.15883
2020 533,318,662 25,264,657 - 558,583,319 0.16317
2021 683,183,671 22,737,911 - 705,921,582 0.16331
2022 537,056,295 19,303,263 - 556,359,558 0.16340
2023 599,090,312 19,730,213 - 618,820,525 0.16353
()
Redevelopment
178
City of Redondo Beach
Direct and Overlapping Property Tax Rates
(Rate per $100 of taxable value)
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City basic rate 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 Overlapping Rates:

Los Angeles County Detention
Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Community College 0.01750 0.01742 0.01745 0.02294 0.02120 0.02223 0.02155 0.02362 0.02264 0.02299 Unified School District 0.09242 0.09689 0.09174 0.09079 0.08630 0.08086 0.08428 0.08430 0.07201 0.07711 Total Direct Rate 0.15783 0.15797 0.15808 0.15834 0.15871 0.15883 0.16317 0.16331 0.16340 0.16353 Total Direct Rate is the weighted average of all individual direct rates applied by the City of Redondo Beach.

RDA direct and overlapping rates are applied only to the incremental property values.

Source: HdL Coren & Cone, Los Angeles County Assessor 2022/2023 Tax Rate Table Notes: General fund tax rates are representative and based upon the direct and overlapping rates for the largest general fund tax rate area (TRA) by net taxable value.

RDA rate is based on the largest RDA tax rate area(TRA) and includes only rate(s) from indebtedness adopted prior to 1969 per California State statute.

In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage to assessed property values for the payment of any voter approved bonds.

Fiscal Year
179
City of Redondo Beach
Principal Property Taxpayers
Current Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northrop Grumman Systems Corporation $ 610,145,755 2.97% $ 511,257,190 3.93% South Bay Center SPE LLC * 269,342,550 1.31% 197,906,507 1.52% Rexford Industrial 2410 Santa Fe LLC 99,639,264 0.49% - 0.00% The Kobe Group Inc 81,897,237 0.40% 75,794,844 0.58%
Noble House Recp Hotel Venture LLC 75,593,468 0.37% 63,330,777 0.49% AES Redondo Beach LLC 72,214,092 0.35% 159,452,370 1.23% Ray Pellegrino Trust * 71,333,399 0.35% - 0.00%
9300 Willshire LLC ET AL * 68,051,442 0.33% - 0.00%
Redondo Beach Distribution Center LLC 57,672,330 0.28% - 0.00% HPT IHG 2 Properties Trust * 53,083,872 0.26% 44,531,038 0.34% LPF Redondo Beach Inc * - - 45,669,852 0.35%
MKEG P LLC - - 38,486,407 0.30%
Lightning PropCo I LLC - - 35,196,909 0.27%
Target Corporation - - 33,923,544 0.26%
$ 1,458,973,409 7.11% $ 1,205,549,438 9.27%
NOTE: The amounts shown above include assessed value date for both the City and the Successor Agency (former Redevelopment Agency). * (Pending appeals on parcels)
Source: HdL Coren & Cone, Los Angeles County Assessor 2022/2023 Combined Tax Rolls 2023 2014
180
City of Redondo Beach
Property Tax Levies and Collections
Fiscal Year Total Tax Collections
Ended Levy for Percentage of in Subsequent Percentage
June 30 Fiscal Year Amount Levy Years Amount of Levy
2014 $ 29,413,514 $ 28,953,089 98.43% $ 487,130 $ 29,440,219 100.09% 2015 31,503,828 31,035,789 98.51% 451,369 31,487,158 99.95% 2016 32,883,797 32,440,070 98.65% 405,762 32,845,833 99.88% 2017 34,125,966 33,690,049 98.72% 388,499 34,078,548 99.86% 2018 35,718,202 35,230,091 98.63% 383,301 35,613,392 99.71% 2019 37,267,914 36,719,102 98.53% 364,627 37,083,729 99.51% 2020 39,182,819 38,271,140 97.67% 404,113 38,675,253 98.70% 2021 40,917,175 40,165,051 98.16% 602,163 40,767,215 99.63% 2022 42,386,631 41,678,608 98.33% 594,526 42,273,134 99.73% 2023 45,094,012 44,393,742 98.45% 574,364 44,968,106 99.72% Source: County of Los Angeles Auditor-Controller
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
181
City of Redondo Beach
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Refunding Wastewater Total Percentage
Fiscal Revenue Capital Revenue Revenue Construction Capital Primary of Personal Per Year Bonds Loans Leases Subscriptions Bonds Bonds Loans Leases Government Income Capita 2014 $ 4,271,142 -$ $ 444,896 $ - $ 7,755,117 $ 2,355,354 - $ -$ 14,826,509 $ 0.41% 219 2015 3,553,356 - 750,436 - 7,503,861 - 2,045,512 114,597 13,967,762 0.39% 205 2016 2,815,570 - 565,029 - 7,232,606 - 1,721,727 58,404 12,393,336 0.35% 180 2017 2,047,784 - 253,265 - 6,951,350 - 1,383,372 - 10,635,771 0.30% 154 2018 1,250,000 - 28,902 - 6,660,094 1,029,790 - - 8,968,786 0.24% 131 2019 27,712,944 - - - 6,353,838 660,298 - - 34,727,080 0.91% 507 2020 26,942,846 - 186,587 - 6,037,582 - 274,194 - 33,441,209 0.84% 499 2021 26,411,918 - 96,652 - 5,711,326 - - - 32,219,896 0.76% 485 2022 233,296,498 - 2,002,632 - 5,375,070 18,750,322 - - 259,424,522 6.02% 3,761 2023 225,831,468 - 1,754,910 985,983 5,023,814 18,126,085 - - 251,722,260 5.26% 3,680 Source: Note 10 of the Notes to Financial Statements
Governmental Activities Business-type Activities
182
City of Redondo Beach
Direct and Overlapping Governmental Activities Debt
June 30, 2023
City Assessed Valuation $ 20,512,490,095
Estimated
Share of
Percentage Outstanding Overlapping
Applicable Debt 6/30/23 Debt
Direct Debt:

Community Financing Authority Lease Revenue Bonds 2021A 100% $ 218,650,000 $ 218,650,000 Community Financing Authority Lease Revenue Refunding Bonds 2019A 100% 25,955,000 25,955,000 Community Financing Authority 2019A Unamortized Bond Premium 100% (647,448) (647,448) Total direct debt $ 243,957,552 $ 243,957,552
Overlapping Debt:
* Metropolitan Water District 0.564% $ 19,215,000 $ 108,373 Los Angeles County General Fund Obligations 1.083% 2,601,551,282 28,174,800 Los Angeles County Superintendent of Schools Certificates of Participation 1.083% 3,403,487 36,860 Los Angeles County Sanitation District No.5 Authority 8.200% 1,269,835 104,126 El Camino Community College District 14.718% 463,537,057 68,223,384 Los Angeles County Sanitation District South Bay Cities Authority 17.243% 216,354 37,306 Redondo Beach Unified School District 100% 204,951,837 204,951,837 Total overlapping debt $ 3,294,144,852 301,636,686
Total direct and overlapping debt $ 545,594,238
NOTE: * This fund is a portion of a larger agency and is responsible for debt in areas outside the City.

Source: HdL Coren & Cone, Los Angeles County Assessor and Auditor Combined 2022/2023 Lien Date Tax Rolls 183
City of Redondo Beach
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed value $ 20,512,490,095
Debt Limit (15% of assessed value) 3,076,873,514
Debt applicable to limit -
Legal debt margin $ 3,076,873,514
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Debt limit $ 2,042,646,734 1,950,708,105 $ 2,143,539,979 $ 2,258,235,466 $ 2,387,747,521 $ 2,512,486,019 $ 2,637,184,289 $ 2,796,921,319 $ 2,889,402,005 $ $ 3,076,873,514 Total net debt applicable to limit - - - - - - - - - -
Legal debt margin 2,042,646,734 1,950,708,105 2,143,539,979 2,258,235,466 2,387,747,521 2,512,486,019 2,637,184,289 2,796,921,319 2,889,402,005 3,076,873,514 Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Source: County of Los Angeles Auditor-Controller
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2023
Fiscal Year
184
City of Redondo Beach
Pledged-Revenue Coverage
Last Ten Fiscal Years
Wastewater Revenue Bonds
Less Net
Fiscal Year Ended Wastewater Operating Available Debt Service June 30, Revenue Expenses Revenue Principal Interest Coverage 2014* $ 4,311,350 $ 1,214,545 $ 3,096,805 $ - $ 208,634 14.84 2015 5,290,338 1,432,699 3,857,640 225,000 322,459 7.05 2016 5,320,916 1,575,501 3,745,415 245,000 301,988 6.85 2017 5,475,892 2,283,864 3,192,028 255,000 289,738 5.86 2018 5,521,455 2,597,120 2,924,335 265,000 279,538 5.37 2019 5,364,859 2,751,925 2,612,934 280,000 268,938 4.76 2020 5,455,997 3,148,875 2,307,122 290,000 257,189 4.22 2021 5,368,274 2,768,598 2,599,676 300,000 246,138 4.76 2022 5,332,000 2,257,488 3,074,512 310,000 234,138 5.65 2023 5,344,095 3,607,690 1,736,405 325,000 221,738 3.18 NOTE: *The Redondo Beach Public Financing Authority issued the Wastewater System Financing Project Revenue Bonds in fiscal year 2003/2004.

It was replaced in fiscal year 2013-14 with the issue of the 2014 Wastewater Refunding Revenue Bonds. 185
City of Redondo Beach
Demographic and Economic Statistics
Per
Personal Capita
Calendar Income * Personal Unemployment
Year Population (in thousands) Income * Rate **
2014 67,717 $ 3,593,809 $ 53,071 7.7%
2015 68,095 3,602,147 53,169 6.9%
2016 68,844 3,562,911 51,269 5.0%
2017 68,907 3,587,933 52,069 4.7%
2018 68,677 3,707,238 53,980 4.1%
2019 68,473 3,835,542 56,015 4.0%
2020 66,994 3,961,378 59,130 13.6%
2021 66,484 4,215,803 63,410 7.4%
2022 68,972 4,311,229 62,506 6.5%
2023 68,407 4,789,934 70,021 3.9%
Sources: HdL Coren & Cone, Los Angeles
California State Department of Finance
US Census Bureau
June 30, 2023
NOTES: * Personal income data was not available from the California Department of Finance subsequent to fiscal year 2019/2020. Per Capita Personal Income is based on the metropolitan area of Los Angeles-Long Beach-Anaheim, CA. Statistics not available subsequent to fiscal year 2019/2020. ** Unemployment rate is based on the metropolitan area of Los Angeles-Long Beach-Anahem, CA. 186
City of Redondo Beach
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employees Employment
Northrup Grumman Corporation 11,064 29.35% 4,591 14.14% Redondo Beach Unified School District 1,027 2.72% 995 3.06% The Cheesecake Factory 261 0.69% 261 0.80%
City of Redondo Beach 425 1.13% 430 1.32%
United States Postal Service 350 0.93% 260 0.80%
Prime Now LLC 233 0.62% -
Target Stores 217 0.58% 217 0.67%
Macy's 206 0.55% 203 0.63%
Frontier 164 0.43% -
Silverado Beach Cities 140 0.37% -
Crowne Plaza Redondo Beach - 339 1.04%
Nordstrom, Inc. - 251 0.77%
DHL Global Forwarding - 209 0.64%
Source: City of Redondo Beach
2023 2014
187
City of Redondo Beach
Full-Time City Government Employees by Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General Government 49 51 51 53 54 54 51 48 54 54
Public Safety
Police
Officers 96 93 96 96 96 96 95 92 95 95
Civilians 59 59 58 58 58 58 58 53 58 58
Fire
Firefighters and Officers 60 62 62 62 62 62 62 56 59 59 Civilians 3 3 3 3 5 5 5 4 5 5
Public Works 111 111 111 112 112 110 109 104 108 108
Cultural and Leisure Services 33 34 34 33 33 32 31 26 29 29 Housing & Community Development 15 17 17 17 18 18 18 16 14 14 Harbor, Business, & Transit 3 3 4 4 4 4 3 3 3 3
TOTAL 429 433 436 438 442 439 432 402 425 425
Source: City of Redondo Beach
Fiscal Year
188
City of Redondo Beach
Operating Indicators by Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public Safety
Police
Physical arrests 2,146 2,141 2,325 2,490 2,184 2,108 1,497 2,022 1,693 1,966 Traffic citations issued 4,966 4,516 3,898 4,699 4,220 4,015 2,651 3,386 2,932 3,489 Fire
Number of runs - rescues 4,338 4,604 4,702 5,025 4,665 4,791 4,472 4,561 5,503 5,555 Number of runs - structures & other 1,822 1,989 2,115 2,107 2,605 2,602 2,833 2,890 2,530 3,002 Public Works
Street rehabilitation (miles) 3.1 1.1 2.4 - 4.1 0.7 1.4 4.1 - 4.6 Culture and Leisure Services
Library
Number of items borrowed 621,139 584,643 545,316 476,837 479,575 447,966 402,964 242,530 411,909 420,318 Number of visitors 333,869 350,958 343,395 332,181 308,542 314,093 210,999 134,103 18,821 177,873 Recreation and Community Services
Admissions - Seaside Lagoon 82,414 81,328 87,422 79,833 79,856 60,419 - * - * 35,367 42,020 Number of facility rentals - Seaside Lagoon 387 381 388 378 382 - * - * 422 765 275 Housing & Community Development
Number of permits issued 3,295 2,955 6,899 3,435 3,522 3,172 2,655 5,651 - ** 3,023 Number of plan checks issued 1,471 1,559 4,200 2,492 2,436 2,060 2,038 3,997 - ** 1,294 Number of inspections 10,326 4,411 12,827 12,276 11,748 17,007 19,130 9,723 10,372 - ** Number of real estate reports 922 973 1,925 861 814 807 672 1,559 - ** 800 Number of bus boardings - Transit 410,585 415,259 407,272 383,112 375,545 367,087 288,912 166,176 295,365 277,558 Revenue miles - Transit 475,564 459,468 458,198 448,682 448,541 448,016 414,401 365,731 437,141 436,056 NOTE: * Seaside Lagoon did not operate for the 2019-2020 fiscal year and reopened June 18, 2021 due to the COVID-19 closure. ** Information no longer being made available as of Fiscal year 2022-2023.

Source: City of Redondo Beach - Financial Services Department Fiscal Year
189
City of Redondo Beach
Capital Asset Statistics by Function
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
Public Safety
Police:

Stations 1 1 1 1 1 1 1 1 1 1
Sub-station 1 1 1 1 1 1 1 1 11
Fire Stations 3 3 3 3 3 3 3 3 3 3
Public Works
Streets (miles) 127 127 127 127 127 127 127 127 127 127 Streetlights * 1892 1892 1892 1892 1892 1892 1892 1892 1899 1899 Street Traffic Controllers 84 84 84 84 84 84 84 84 84 84 Sanitary sewers (miles) 112 112 112 112 112 112 112 112 112 112 Culture and Leisure Services
Parks 15 15 15 15 15 15 15 15 15 15
Parkettes 13 13 13 13 13 13 13 13 13 13
Total Park Acreage 143.26 143.26 143.26 143.26 143.26 143.26 143.26 143.26 143.26 143.26 Boat Slips 1509 1509 1509 1509 1509 1509 1509 1509 1509 1509 Harbor acreage:

Total water area (exclusive of the pier) 107 107 107 107 107 107 107 107 107 107 Total land area 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 Libraries 2 2 2 2 2 2 2 2 2 2
Community Centers 5 5 5 5 5 5 5 5 5 5
NOTE: * Methodology modification made in fiscal year 2004/2005 to reflect city-owned street lights only.

Source: City of Redondo Beach
Fiscal Year
190
City of Redondo Beach
Certification of Continuing Disclosure
Redondo Beach Community Financing Authority 2014 Wastewater Refunding Revenue Bonds (Wastewater System Financing Project)
June 30, 2023
This Certification of Continuing Disclosure is provided by the City of Redondo Beach (“the City”) and the Redondo Beach Community Financing Authority through US Bank, as Dissemination Agent pursuant to a Continuing Disclosure Certificate dated March 25, 2014 executed and delivered by the City of Redondo Beach and the Community Financing Authority and the Dissemination Agent in connection with the issuance of $7,230,000 Refunding Revenue Bonds, City of Redondo Beach Wastewater System Financing Project Bonds (“the Bonds”). The Bonds were issued pursuant to an Indenture of Trust dated as of March 25, 2014 between the Financing Authority and US Bank. The proceeds of the Bonds were issued to provide funds to (a) finance the Improvements and related facilities which constitute part of the Wastewater Enterprise of the City, (b) fund capitalized interest on the Bonds through November 1, 2014, (c) fund a reserve fund for the Bonds, and (d) pay the cost of issuance for the Bonds.

This Certification is made pursuant to the requirements of Section 3(a) of the Continuing Disclosure Certificate with respect to the 2020-21 fiscal year.

The City and the Community Financing Authority hereby report the following:

1. The audited financial statements of the City, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board, for the fiscal year ended June 30, 2021 comprise the book in which this report is included.

2. During the fiscal year ended June 30, 2021, neither the City nor the Community Financing Authority has given or caused to be given notice of the occurrence of any of the following events:
a. Principal and interest payment delinquencies;
b. Non-payment related defaults;
c. Unscheduled draws on debt service reserves reflecting financial difficulties; d. Unscheduled draws on credit enhancements reflecting financial difficulties; e. Substitution of credit or liquidity providers, or their failure to perform; f. Adverse tax opinions or events affecting the tax-exempt status of the security; g. Modifications to rights of security holders;
h. Contingent or unscheduled bond calls;
i. Defeasances;
j. Resale, substitution, or sale of property securing repayment of the securities; or k. Rating changes
191
Sewer Rates Per Month
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Use Classification
Each single family dwelling unit $ 16.25 13.25 $ 16.25$ 16.25$ 16.25$ 16.25$ 16.25$ 16.25$ 16.25$ 16.25 Each unit in a 2-3 unit condo structure 16.25 13.25 16.25 16.25 16.25 16.25 16.25 16.25 16.25 16.25 Each unit in a 2-3 unit apartment structure 12.64 10.31 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 Each unit in a 4 or more unit condo structure 12.64 10.31 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 Each unit in a 4 or more unit apartment structure 8.70 7.09 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 Commercial/Industrial/Institutional parcels 1.13 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 Source: City of Redondo Beach
City of Redondo Beach
Last Ten Fiscal Years
NOTE: The Redondo Beach Public Financing Authority issued the Wastewater System Financing Project Revenue Bonds in fiscal year 2003/2004. A reissue of the Bonds was done in fiscal year 2013/2014 by the Community Financing Authority. * Per 100 cubic feet of average monthly water usage. 100 cubic feet of water is equal to 748 gallons, average monthly water usage is established based on the latest actual annual water usage record available to the City. On an annual basis, the city will recalculate the monthly charge by using the latest available annual water usage record of each non-residential user at the same $1.13 per 100 cubic feet rate to set a new monthly rate. Any water proven to be used for boilers, cooling towers or similar devises that will not be discharged into the sewer system may be deducted from the annual water usage record for rate calculation purposes.
192
City of Redondo Beach
Top Ten Customers - Sewage Usage
June 30, 2023
% of
Account Name Type of Use Usage (ccf) Billed Amount Revenue AES Redondo Beach LLC Power Plant 150,127 $208,677 3.8% Northrop Grumman Systems Aerospace 45,419 $63,132 1.2%
Redondo Beach Unified - South Bay Union High Education 26,163 $36,367 0.7% Hilton Garden Inn Hotel 16,464 $22,885 0.4%
Marina Way Mole B Harbor Facilities 16,181 $22,492 0.4% City of Redondo Beach Leased Properties Harbor Facilities 16,151 $22,450 0.4% Beach Cities Health District Hospital 15,970 $22,198 0.4% Sonesta Redondo Beach & Marina Hotel 14,276 $19,844 0.4% South Bay Center SPE LLC Shopping Mall 12,357 $17,176 0.3% Village at Redondo LLC - 160 Unit Apartment 12,017 $16,704 0.3%

8.3%
193
City of Redondo Beach
Sewer Connections by Type of Customer
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Type of Customer
Residential 13,105 13,104 13,105 13,111 13,113 13,114 13,116 13,117 13,121 13,123 Industrial 61 61 59 59 59 58 57 57 57 53
Commercial 461 463 462 464 463 465 465 464 458 456
Institutional 59 59 59 58 58 57 56 56 56 56
Mixed use 43 43 43 43 43 43 43 43 44 44
Total 13,730 13,729 13,728 13,735 13,736 13,737 13,737 13,737 13,736 13,732 NOTE: The Redondo Beach Public Financing Authority issued the Wastewater System Financing Project Revenue Bonds in fiscal year 2003/2004.

A reissue of the Bonds was done in fiscal year 2013/2014 by the Community Financing Authority.

Source: City of Redondo Beach
194
City of Redondo Beach
Certification of Continuing Disclosure
Redondo Beach Community Financing Authority Lease Revenue Refunding Bonds Series 2019A (Leaseback Agreement)
June 30, 2023
This Certification of Continuing Disclosure is provided by the City of Redondo Beach (“the City”) and the Redondo Beach Community Financing Authority through US Bank, as Dissemination Agent pursuant to a Continuing Disclosure Certificate dated February 1, 2019 executed and delivered by the City of Redondo Beach and the Community Financing Authority and the Dissemination Agent in connection with the issuance of $28,015,000 Lease Revenue Refunding Bonds (“the Bonds”). The Bonds were issued pursuant to an Indenture of Trust dated as of February 1, 2019 between the Financing Authority and US Bank. The proceeds of the Bonds were issued to provide funds to (a) refund the City of Redondo Beach’s (the “City”) $8,300,000 Leaseback Agreement (Redondo Beach Pier Plaza), dated as of March 1, 2012, by and between Compass Bank and the City, currently outstanding in the principal amount of $6,314.012.91; (b) refund the City’s $2,700,000 Leaseback Agreement (Redondo Beach International Boardwalk Project), dated as of May 1, 2012 by and between Compass Bank and the City, currently outstanding in the principal amount of $2,021,296.58; (c) refund the City’s $12,500,000 Leaseback Agreement (Redondo Beach Marina Project), dated as of May 1, 2014, by and between Compass Bank and the City, currently outstanding in the principal amount of $10,076,474.18; (d) finance the purchase of a Sublease between the City and Redondo Fisherman’s Cove Company; and (e) pay costs of issuance of the Bonds.

This Certification is made pursuant to the requirements of Section 3 and 4 of the Continuing Disclosure Certificate with respect to the 2020-21 fiscal year.

The City and the Community Financing Authority hereby report the following:

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199

Redondo Beach City CouncilMarch 12, 2024

Redondo Beach City Council
March 12, 2024