Preliminary Draft
CITY OF REDONDO BEACH, CALIFORNIA
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2024
Preliminary Draft
CITY OF REDONDO BEACH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
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 4
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 23
STATEMENT OF ACTIVITIES 25
FUND FINANCIAL STATEMENTS
BALANCE SHEET – GOVERNMENTAL FUNDS 28
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 29
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 30
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF ACTIVITIES 31
STATEMENT OF NET POSITION – PROPRIETARY FUNDS 32
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION – PROPRIETARY FUNDS 34
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 36
STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS 40 STATEMENT OF CHANGES IN NET POSITION – FIDUCIARY FUNDS 41 Preliminary Draft
CITY OF REDONDO BEACH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
NOTES TO BASIC FINANCIAL STATEMENTS 43
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 101
BUDGETARY COMPARISON INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 103
BUDGETARY COMPARISON SCHEDULE – OTHER
INTERGOVERNMENTAL GRANTS 104
BUDGETARY COMPARISON SCHEDULE – LOW-MOD INCOME HOUSING 105
PENSION INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER
PLAN 106
SCHEDULE OF PLAN CONTRIBUTIONS – MISCELLANEOUS PLAN –
AGENT MULTIPLE-EMPLOYER PLAN 108
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN 110 SCHEDULE OF PLAN CONTRIBUTIONS – SAFETY PLAN – AGENT
MULTIPLE-EMPLOYER PLAN 112
OPEB INFORMATION
SCHEDULE OF CHANGES IN OPEB LIABILITY AND RELATED RATIOS 114 SCHEDULE OF CONTRIBUTIONS 116
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS 118
SUPPLEMENTARY INFORMATION
COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 123
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 129
BUDGETARY COMPARISON SCHEDULES – SPECIAL REVENUE FUNDS
Preliminary Draft
CITY OF REDONDO BEACH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
STATE GAS TAX 135
PARKS AND RECREATION FACILITIES 136
NARCOTIC SEIZURE / FORFEITURE 137
PROPOSITION A 138
PROPOSITION C 139
MEASURE R 140
LOCAL TRANSPORTATION ARTICLE 3 141
AIR QUALITY IMPROVEMENT 142
STORM DRAIN IMPROVEMENT 143
STREET LANDSCAPING AND LIGHTING DISTRICT 144
COMMUNITY DEVELOPMENT BLOCK GRANT 145
DISASTER RECOVERY 146
HOUSING AUTHORITY 147
SUBDIVISION PARK TRUST 148
MEASURE M 149
MEASURE W 150
BUDGETARY COMPARISON SCHEDULES – CAPITAL PROJECT FUNDS
CAPITAL IMPROVEMENT PROJECTS 151
MAJOR FACILITIES RECONSTRUCTION 152
OPEN SPACE ACQUISITION 153
BUDGETARY COMPARISON SCHEDULES – DEBT SERVICE FUNDS
PUBLIC FINANCING AUTHORITY 154
COMBINING STATEMENT OF NET POSITION – NONMAJOR ENTERPRISE FUNDS 155
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – NONMAJOR ENTERPRISE FUNDS 156
Preliminary Draft
CITY OF REDONDO BEACH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
COMBINING STATEMENT OF CASH FLOWS – NONMAJOR 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 INFORMATION
NET POSITION BY COMPONENT 165
CHANGES IN NET POSITION 167
FUND BALANCES OF GOVERNMENTAL FUNDS 171
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 173
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 175
DIRECT AND OVERLAPPING PROPERTY TAX RATES 177
PRINCIPAL PROPERTY TAXPAYERS 178
PROPERTY TAX LEVIES AND COLLECTIONS 179
RATIOS OF OUTSTANDING DEBT BY TYPE 180
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 181 LEGAL DEBT MARGIN INFORMATION 182
PLEDGED – REVENUE COVERAGE 184
DEMOGRAPHIC AND ECONOMIC STATISTICS 185
PRINCIPAL EMPLOYERS 186
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION 187
OPERATING INDICATORS BY FUNCTION 188
CAPITAL ASSET STATISTICS BY FUNCTION 189
REDONDO BEACH PUBLIC FINANCING AUTHORITY, WASTEWATER
SYSTEM FINANCING PROJECT
Preliminary Draft
CITY OF REDONDO BEACH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
CERTIFICATION OF CONTINUING DISCLOSURE 190
SEWER RATES PER MONTH 191
TOP TEN CUSTOMERS – SEWAGE USAGE 192
SEWER CONNECTIONS BY TYPE OF CUSTOMER 193
REDONDO BEACH PUBLIC FINANCING AUTHORITY, LEASEBACK
AGREEMENT
CERTIFICATION OF CONTINUING DISCLOSURE 194
COMPLIANCE SECTION
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 196
Preliminary Draft
INTRODUCTORY SECTION
Preliminary Draft
CITY OF REDONDO BEACH
MAYOR AND CITY COUNCIL
Bill Brand
Mayor
Nils Nehrenheim Todd Loewenstein Paige Kaluderovic Zein Obagi, Jr. Scott Behrendt 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 Eugene Solomon
City Attorney City Clerk City Treasurer
Cameron Harding Brandy Forbes
Community Services Director Community Development Director Patrick Butler Joe Hoffman
Interim Fire Chief Police Chief
Greg Kapovich Dana Vinke
Waterfront and Economic Development Director Library Director Michael Cook Ted Semaan
Information Technology Director Public Works Director
Wendy Collazo Diane Strickfaden
Finance Director Human Resources Director
Elizabeth Hause Luke Smude
Assistant to the City Manager Assistant to the City Manager Preliminary Draft
CITIZENS OF REDONDO BEACH
MAYOR AND CITY COUNCIL
CITY
ATTORNEY
CITY
TREASURER
CITY
CLERK
Harbor
Commission
Handicapped
Access
Appeals Board
Budget &
Finance
Commission
Board of
Appeals &
Uniform Code
Historical
Commission
CITY
MANAGER
Recreation &
Parks
Commission
Fire Human
Resources
Public
Library
Financial
Services
Community
Services
Public Works
Community
Development
Information
Technology
Police Waterfront
and Economic
Development
ORGANIZATIONAL CHART
FY 2023-24
Elected Officials
Boards & Commissions
City Departments
Public Arts
Commission
Planning
Commission
Suspension
Appeals Board
Youth
Commission
Preservation
Commission
Public Safety
Commission
Public Works
Commission
Library
Commission
Preliminary Draft
FINANCIAL SECTION
Preliminary Draft
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Redondo Beach
Redondo Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redondo Beach (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As discussed in Note 17 to the financial statements, the City made restatements to beginning fund balance/net position resulting from corrections of errors. Our opinions are not modified with respect to this matter.
Preliminary Draft
Honorable Mayor and Members of the City Council
City of Redondo Beach
(1)
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Preliminary Draft
Honorable Mayor and Members of the City Council
City of Redondo Beach
(2)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedule for the General Fund and major special revenue funds, the modified approach for the City’s infrastructure assets, and the required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Preliminary Draft
Honorable Mayor and Members of the City Council
City of Redondo Beach
(3)
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated REPORT DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
REPORT DATE
Preliminary Draft
(4)
Placeholder for Management’s Discussion and Analysis
Preliminary Draft
(21)
BASIC FINANCIAL STATEMENTS
Preliminary Draft
(22)
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(23)
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Cash Equivalents $ 96,773,956 $ 28,104,520 $ 124,878,476 Receivables:
Accounts 1,081,745 1,482,244 2,563,989
Taxes 5,395,414 178,672 5,574,086
Accrued Interest 453,922 321,953 775,875
Notes and Loans 2,405,808 - 2,405,808
Leases 5,812,597 69,830,037 75,642,634
Internal Balances 1,292,629 (1,292,629) -
Prepaid Costs 152,736 - 152,736
Due from Other Governments 14,336,265 82,675 14,418,940 Advances to Successor Agency 535,731 - 535,731
Restricted Assets:
Cash with Fiscal Agent 55,246 873 56,119
Deposits Receivable 1,574,054 - 1,574,054
Capital Assets, Not Being Depreciated 97,703,553 31,676,591 129,380,144 Capital Assets, Net of Depreciation 97,813,803 45,703,720 143,517,523 Total Current Assets 325,387,459 176,088,656 501,476,115
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 257,077 257,077
Deferred Pension Related Items 46,272,661 5,172,436 51,445,097 Deferred OPEB Related Items 3,931,106 461,455 4,392,561 Total Deferred Outflows of Resources 50,203,767 5,890,968 56,094,735 Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(24)
Primary Government
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current Liabilities:
Accounts Payable $ 7,939,117 $ 3,073,608 $ 11,012,725
Accrued Liabilities 4,898,642 - 4,898,642
Accrued Interest 1,017,143 106,784 1,123,927
Unearned Revenue 1,005,960 43,243 1,049,203
Deposits Payable 4,000,601 225,634 4,226,235
Due to Other Governments - 266,467 266,467
Pollution Remediation Liability 150,000 - 150,000
Compensated Absences Due in One Year 1,011,470 125,323 1,136,793 Claims Payable Due in One Year 1,203,177 - 1,203,177
Long-Term Obligations Due in One Year 8,645,932 986,284 9,632,216 Total Current Liabilities 29,872,042 4,827,343 34,699,385 Noncurrent Liabilities:
Compensated Absences Due in More than One Year 3,034,406 375,954 3,410,360 Claims Payable Due in More than One Year 23,199,925 - 23,199,925 Long-Term Obligations Due in More than One Year 212,757,270 21,170,637 233,927,907 Net Pension Liability 38,421,560 3,883,837 42,305,397
Net OPEB Liability 12,231,453 1,435,795 13,667,248
Total Current Liabilities 289,644,614 26,866,223 316,510,837 Total Liabilities 319,516,656 31,693,566 351,210,222
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 1,649,716 248,816 1,898,532 Deferred OPEB Related Items 3,271,474 384,023 3,655,497 Deferred Leases Related Items 5,716,656 68,266,390 73,983,046 Total Deferred Inflows of Resources 10,637,846 68,899,229 79,537,075
NET POSITION
Net Investment in Capital Assets 201,454,388 71,887,538 273,341,926 Restricted for:
Housing and Community Development 12,519,783 - 12,519,783 Public Safety 423,133 - 423,133
Public Works 7,810,731 - 7,810,731
Debt Service 4,639,885 - 4,639,885
Low and Moderate Income Housing 4,864,048 - 4,864,048
Unrestricted (186,275,244) 9,499,291 (176,775,953)
Total Net Position
Preliminary
$ 45,436,724 $ 81,386,829 $ 126,823,553
Draft
CITY OF REDONDO BEACH
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(25)
Program Revenues
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
PRIMARY GOVERNMENT
Governmental Activities:
General Government $ 14,502,522 $ 16,077,714 $ - $ -
Public Safety 84,041,046 5,754,175 1,654,953 -
Housing and Community Development 15,740,380 4,331,471 811,366 - Cultural and Leisure Services 13,367,162 10,169,027 8,896,026 2,462,965 Public Works 18,203,045 3,441,632 4,181,705 5,888,527
Interest on Long-Term Debt and
Fiscal Charges 6,374,469 - - -
Total Governmental Activities 152,228,624 39,774,019 15,544,050 8,351,492 Business-Type Activities:
Harbor Tidelands 12,302,254 8,610,420 12,627 -
Harbor Uplands 7,231,353 7,306,683 - -
Wastewater 4,081,219 5,644,278 - -
Solid Waste 6,632,516 6,990,772 27,206 -
Transit 5,967,261 217,107 3,343,088 -
Total Business-Type Activities 36,214,603 28,769,260 3,382,921 - Total Primary Government $ 188,443,227 $ 68,543,279 $ 18,926,971 $ 8,351,492 Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(26)
Functions/Programs
PRIMARY GOVERNMENT
Governmental Activities:
General Government
Public Safety
Housing and Community Development
Cultural and Leisure Services
Public Works
Interest on Long-Term Debt and
Fiscal Charges
Total Governmental Activities
Business-Type Activities:
Harbor Tidelands
Harbor Uplands
Wastewater
Solid Waste
Transit
Total Business-Type Activities
Total Primary Government
GENERAL REVENUES
Taxes:
Property Taxes, Levied for General
Purposes
Transient Occupancy Taxes
Sales Taxes
Franchise Taxes
Business Licenses Taxes
Utility Users Tax
Other Taxes
Motor Vehicle In Lieu - Unrestricted
Investment Income
Gain on Sale of Capital Asset
Transfers
Total General Revenues and
Transfers
CHANGE IN NET POSITION
Net Position - Beginning of Year,
as Previously Reported
Error Corrections
Net Position - Beginning of Year,
as Restated
NET POSITION - END OF YEAR
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
Governmental Business-Type
Activities Activities Total
$ 1,575,192 $ - $ 1,575,192
(76,631,918) - (76,631,918)
(10,597,543) - (10,597,543)
8,160,856 - 8,160,856
(4,691,181) - (4,691,181)
(6,374,469) - (6,374,469)
(88,559,063) - (88,559,063)
- (3,679,207) (3,679,207)
- 75,330 75,330
- 1,563,059 1,563,059
- 385,462 385,462
- (2,407,066) (2,407,066)
- (4,062,422) (4,062,422)
(88,559,063) (4,062,422) (92,621,485)
48,021,316 - 48,021,316
9,114,545 - 9,114,545
10,822,480 - 10,822,480
1,964,410 - 1,964,410
1,266,051 - 1,266,051
8,481,267 - 8,481,267
1,118,398 - 1,118,398
86,764 - 86,764
6,551,406 2,427,116 8,978,522
115,613 - 115,613
(487,401) 487,401 -
87,054,849 2,914,517 89,969,366
(1,504,214) (1,147,905) (2,652,119)
54,191,573 82,449,722 136,641,295
(7,250,635) 85,012 (7,165,623)
46,940,938 82,534,734 129,475,672
$ 45,436,724 $ 81,386,829 $ 126,823,553
Preliminary Draft
(27)
FUND FINANCIAL STATEMENTS
Preliminary Draft
CITY OF REDONDO BEACH
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(28)
Special Revenue Funds
Other Other Total
Intergovernmental Low-Mod Income Governmental Governmental General Grants Housing Funds Funds
ASSETS
Pooled Cash and Investments $ 28,233,374 $ - $ 1,898,524 $ 35,840,443 $ 65,972,341 Receivables:
Accounts 399,354 502,174 - 125,763 1,027,291
Taxes 5,205,519 - - 189,895 5,395,414
Accrued Interest 369,305 - - 84,617 453,922
Notes and Loans 15,616 - 2,078,965 311,227 2,405,808
Leases 4,785,455 - - 1,027,142 5,812,597
Prepaid Costs 152,736 - - - 152,736
Due from Other Governments 1,649,840 6,949,747 - 5,736,678 14,336,265 Due from Other Funds 9,586,431 - - 5,222,879 14,809,310 Advances to Successor Agency - - 535,731 - 535,731
Restricted Assets:
Cash and Investments with Fiscal Agents - - - 55,246 55,246 Deposits Receivable 1,574,054 - - - 1,574,054
Total Assets $ 51,971,684 $ 7,451,921 $ 4,513,220 $ 48,593,890 $ 112,530,715
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 1,686,301 $ 1,597,925 $ 28,563 $ 2,190,159 $ 5,502,948 Accrued Liabilities 4,814,108 84,534 - - 4,898,642
Unearned Revenue 340,529 665,431 - - 1,005,960
Deposits Payable 4,000,601 - - - 4,000,601
Due to Other Funds - 5,868,098 861,213 6,787,370 13,516,681 Pollution Remediation Liability 150,000 - - - 150,000
Total Liabilities 10,991,539 8,215,988 889,776 8,977,529 29,074,832
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - 5,969,180 389,992 311,230 6,670,402 Deferred Leases Related Items 4,713,253 - - 1,003,403 5,716,656 Total Deferred Inflows of Resources 4,713,253 5,969,180 389,992 1,314,633 12,387,058
FUND BALANCES
Nonspendable:
Prepaid Costs 152,736 - - - 152,736
Notes and Loans 15,616 - - - 15,616
Restricted for:
Housing and Community Development - - - 12,195,736 12,195,736 Public Safety - - - 423,133 423,133
Public Works - - - 7,810,731 7,810,731
Debt Service - - - 5,608,337 5,608,337
Low and Moderate Income Housing - - 3,233,452 1,240,604 4,474,056 Committed to:
Contingency 8,599,208 - - - 8,599,208
Assigned to: -
Capital Projects - - - 11,118,944 11,118,944
Compensated Absences 785,832 - - - 785,832
Future Pension Payments 7,975,721 - - - 7,975,721
Continuing Operations 17,206,519 - - - 17,206,519
Unassigned 1,531,260 (6,733,247) - (95,757) (5,297,744) Total Fund Balances 36,266,892 (6,733,247) 3,233,452 38,301,728 71,068,825 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 51,971,684 $ 7,451,921 $ 4,513,220 $ 48,593,890 $ 112,530,715 Preliminary Draft
CITY OF REDONDO BEACH
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(29)
Fund Balances of Governmental Funds $ 71,068,825
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets, net of depreciation have not been included as financial resources in governmental fund activity. 184,580,801
Long-term debt and compensated absences that have not been included in the governmental fund activity:
Bonds Payable (208,713,498)
Leases and Subscriptions (2,456,226)
Net OPEB Liability (11,466,108)
Net Pension Liability (36,533,607)
Compensated Absences (3,722,950)
Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (968,452) Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. 6,670,402 Deferred outflows and inflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds:
Deferred Outflows of Resources - Pension Related Items 43,748,421 Deferred Inflows of Resources - Pension Related Items (1,527,125) Deferred Outflows of Resources - OPEB Related Items 3,685,130 Deferred Inflows of Resources - OPEB Related Items (3,066,773) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Position. 4,137,884
Net Position of Governmental Activities $ 45,436,724
Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(30)
Special Revenue Funds
Other Other Total
Intergovernmental Low-Mod Income Governmental Governmental General Grants Housing Funds Funds
REVENUES
Taxes $ 80,645,193 $ - $ - $ 143,274 $ 80,788,467
Interdepartmental 13,821,750 - - - 13,821,750
Licenses and Permits 2,386,229 - - - 2,386,229
Intergovernmental 186,830 10,292,835 - 20,259,672 30,739,337 Charges for Services 10,078,596 - - 1,924,566 12,003,162 Use of Money and Property 5,265,301 - 54,897 1,183,824 6,504,022 Fines and Forfeitures 1,230,559 - - 72,107 1,302,666
Miscellaneous 3,189,908 - - 897,087 4,086,995
Total Revenues 116,804,366 10,292,835 54,897 24,480,530 151,632,628
EXPENDITURES
Current:
General Government 14,492,509 754,748 - 3,937 15,251,194 Public Safety 62,610,870 391,521 - 154,515 63,156,906
Housing and Community Development 3,453,461 - 40,159 9,465,472 12,959,092 Cultural and Leisure Services 12,019,487 - 279,000 - 12,298,487 Public Works 7,608,906 330,126 - 4,369,383 12,308,415
Capital Outlay 235,704 9,177,283 - 9,391,848 18,804,835 Debt Service:
Principal Retirement 593,041 58,989 - 7,227,940 7,879,970 Interest and Fiscal Charges 15,322 8,754 - 5,883,179 5,907,255 Total Expenditures 101,029,300 10,721,421 319,159 36,496,274 148,566,154
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 15,775,066 (428,586) (264,262) (12,015,744) 3,066,474
OTHER FINANCING SOURCES (USES)
Transfers In 1,653,179 - - 14,785,204 16,438,383
Transfers Out (13,973,838) - - (2,951,946) (16,925,784) Subscription Financing 619,252 - - 10,500 629,752
Total Other Financing Sources (Uses) (11,701,407) - - 11,843,758 142,351 NET CHANGE IN FUND BALANCES 4,073,659 (428,586) (264,262) (171,986) 3,208,825 Fund Balances (Deficits) - Beginning of Year
as Previously Presented 33,188,418 (6,053,354) 3,497,714 38,473,714 69,106,492 Error Corrections (995,185) (251,307) - - (1,246,492)
Fund Balances (Deficits) - Beginning of Year
as Restated 32,193,233 (6,304,661) 3,497,714 38,473,714 67,860,000
FUND BALANCES (DEFICITS) - END OF YEAR
Preliminary
$ 36,266,892 $ (6,733,247) $ 3,233,452 $ 38,301,728 $ 71,068,825 Draft
CITY OF REDONDO BEACH
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(31)
Net Change in Fund Balances - Total Governmental Funds $ 3,208,825 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation and disposals in the current period.
Capital Outlay 14,010,487
Depreciation (6,098,819)
Loss on Disposal of Capital Assets (447,226)
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Principal Repayments 7,194,296
Leases and Subscriptions Principal Repayments 685,674
Subscriptions Financing (629,752)
Amortization of Bond Premium / Discounts (24,902)
Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (180,987)
Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (236,250)
Governmental funds report all contributions in relation to the annual required contribution for pensions as expenditures, however, in the Statement of Activities, pension expense is actually determined and certain pension related adjustments are deferred to future periods. (12,917,021)
Governmental funds report all contributions in relation to the annual required contribution for OPEB as expenditures, however, in the Statement of Activities, OPEB expense is actually determined and certain pension related adjustments are deferred to future periods. 787,610
Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. (583,815)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service fund is reported with governmental activities. (6,272,334)
Change in Net Position of Governmental Activities $ (1,504,214) Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(32)
Business-Type Activities - Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater
ASSETS
Current Assets:
Cash and Investments $ 6,435,936 $ 954,289 $ 17,328,654 Receivables:
Accounts 754,193 350,950 27,199
Taxes - - 77,922
Accrued Interest 154,763 77,384 89,806
Leases 1,835,890 2,280,027 -
Due from Other Governments - - -
Due from Other Funds 175,000 - -
Restricted:
Cash with Fiscal Agent - - 810
Total Current Assets 9,355,782 3,662,650 17,524,391
Noncurrent Assets:
Leases Receivable 41,618,323 24,095,797 -
Capital Assets - Net of Accumulated Depreciation/Amortization 24,793,149 23,310,687 27,472,177 Total Noncurrent Assets 66,411,472 47,406,484 27,472,177 Total Assets 75,767,254 51,069,134 44,996,568
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - 257,077
Deferred Pension Related Items 2,451,096 1,313,039 747,421 Deferred OPEB Related Items 205,980 111,557 79,708
Total Deferred Outflows of Resources 2,657,076 1,424,596 1,084,206
LIABILITIES
Current Liabilities:
Accounts Payable 1,495,696 88,566 744,147
Accrued Interest 39,603 13,140 44,460
Unearned Revenues - - -
Deposits Payable 142,879 82,755 -
Due to Other Funds 544,986 - -
Due to Other Governments - - -
Accrued Compensated Absences 43,910 15,664 34,641
Accrued Claims and Judgments - - -
Long-Term Debt - Due within One Year 330,491 109,656 466,179 Total Current Liabilities 2,597,565 309,781 1,289,427
Noncurrent Liabilities:
Accrued Compensates Absences 131,729 46,992 103,921
Accrued Claims and Judgments - - -
Long-Term Debt - Due in More than One Year 8,830,815 2,930,040 7,273,294 Net Pension Liability 1,973,255 1,009,957 477,985
Net OPEB Liability 640,895 347,104 248,008
Total Noncurrent Liabilities 11,576,694 4,334,093 8,103,208 Total Liabilities 14,174,259 4,643,874 9,392,635
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 97,097 59,396 48,998
Deferred OPEB Related Items 171,416 92,838 66,333
Deferred Leases Related Items 42,539,439 25,726,951 -
Total Deferred Inflows of Resources 42,807,952 25,879,185 115,331
NET POSITION
Net Investment in Capital Assets 24,651,273 23,310,687 22,132,980 Unassigned (3,209,154) (1,340,016) 14,439,828
Total Net Position $ 21,442,119 $ 21,970,671 $ 36,572,808 Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF NET POSITION (CONTINUED)
PROPRIETARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(33)
ASSETS
Current Assets:
Cash and Investments
Receivables:
Accounts
Taxes
Accrued Interest
Leases
Due from Other Governments
Due from Other Funds
Restricted:
Cash with Fiscal Agent
Total Current Assets
Noncurrent Assets:
Leases Receivable
Capital Assets - Net of Accumulated Depreciation/Amortization Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding
Deferred Pension Related Items
Deferred OPEB Related Items
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Interest
Unearned Revenues
Deposits Payable
Due to Other Funds
Due to Other Governments
Accrued Compensated Absences
Accrued Claims and Judgments
Long-Term Debt - Due within One Year
Total Current Liabilities
Noncurrent Liabilities:
Accrued Compensates Absences
Accrued Claims and Judgments
Long-Term Debt - Due in More than One Year
Net Pension Liability
Net OPEB Liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items
Deferred OPEB Related Items
Deferred Leases Related Items
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Unassigned
Total Net Position
Business-Type Activities - Enterprise Funds Governmental Other Activities -
Nonmajor Internal
Enterprise Funds Totals Service Funds
$ 3,385,641 $ 28,104,520 $ 30,801,615
349,902 1,482,244 54,454
100,750 178,672 -
- 321,953 -
- 4,115,917 -
82,675 82,675 -
- 175,000 -
63 873 -
3,919,031 34,461,854 30,856,069
- 65,714,120 -
1,804,298 77,380,311 10,936,555
1,804,298 143,094,431 10,936,555
5,723,329 177,556,285 41,792,624
- 257,077 -
660,880 5,172,436 2,524,240
64,210 461,455 245,976
725,090 5,890,968 2,770,216
745,199 3,073,608 2,436,169
9,581 106,784 48,691
43,243 43,243 -
- 225,634 -
922,643 1,467,629 -
266,467 266,467 -
31,108 125,323 80,732
- - 1,203,177
79,958 986,284 573,852
2,098,199 6,294,972 4,342,621
93,312 375,954 242,194
- - 23,199,925
2,136,488 21,170,637 9,659,626
422,640 3,883,837 1,887,953
199,788 1,435,795 765,345
2,852,228 26,866,223 35,755,043
4,950,427 33,161,195 40,097,664
43,325 248,816 122,591
53,436 384,023 204,701
- 68,266,390 -
96,761 68,899,229 327,292
1,792,598 71,887,538 10,202,312
(391,367) 9,499,291 (6,064,428)
$ 1,401,231 $ 81,386,829 $ 4,137,884
Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(34)
Business-Type Activities -
Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater
OPERATING REVENUES
Sales and Service Charges $ 976,667 $ 1,871,509 $ 5,642,079 Harbor Rentals 7,612,688 5,435,174 -
Miscellaneous 21,065 - 2,199
Total Operating Revenues 8,610,420 7,306,683 5,644,278
OPERATING EXPENSES
Administrative and General 5,350,529 2,346,792 164,666
Personnel Services 4,431,588 2,420,697 1,788,490
Contractual Services 500,772 281,048 559,421
Internal Service Charges 1,214,436 1,720,316 523,564
Depreciation and Amortization Expense 565,103 382,990 728,479 Total Operating Expenses 12,062,428 7,151,843 3,764,620 OPERATING INCOME (LOSS) (3,452,008) 154,840 1,879,658
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 12,627 - -
Interest Revenue 1,200,278 492,302 734,536
Interest Expense (239,826) (79,510) (316,599)
Gain (loss) on disposal of capital assets - - -
Total Nonoperating Revenues (Expenses) 973,079 412,792 417,937 INCOME (LOSS) BEFORE TRANSFERS (2,478,929) 567,632 2,297,595 Transfers In 567,515 188,208 190,822
Transfers Out (567,515) (1,841,387) (190,822)
CHANGES IN NET POSITION (2,478,929) (1,085,547) 2,297,595 Net Position - Beginning of year, as Previously Reported 24,411,236 23,056,218 33,700,013 Error Corrections (490,188) - 575,200
Fund Balances (Deficits) - Beginning of Year, as Restated 23,921,048 23,056,218 34,275,213 NET POSITION - END OF YEAR $ 21,442,119 $ 21,970,671 $ 36,572,808 Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(35)
OPERATING REVENUES
Sales and Service Charges
Harbor Rentals
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Administrative and General
Personnel Services
Contractual Services
Internal Service Charges
Depreciation and 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, as Previously Reported Error Corrections
Fund Balances (Deficits) - Beginning of Year, as Restated
NET POSITION - END OF YEAR
Business-Type Activities -
Enterprise Funds Governmental
Other Activities -
Nonmajor Internal
Enterprise Funds Totals Service Funds
$ 7,041,104 $ 15,531,359 $ 16,910,807
- 13,047,862 -
166,775 190,039 5,296,111
7,207,879 28,769,260 22,206,918
578,447 8,440,434 14,868,615
1,643,399 10,284,174 6,327,360
9,320,936 10,662,177 2,896,111
738,505 4,196,821 2,497,069
260,624 1,937,196 1,791,770
12,541,911 35,520,802 28,380,925
(5,334,032) (6,751,542) (6,174,007)
3,370,294 3,382,921 -
- 2,427,116 47,385
(57,866) (693,801) (261,325)
- - 115,613
3,312,428 5,116,236 (98,327)
(2,021,604) (1,635,306) (6,272,334)
2,277,815 3,224,360 594,409
(137,235) (2,736,959) (594,409)
118,976 (1,147,905) (6,272,334)
1,282,255 82,449,722 10,410,218
- 85,012 -
1,282,255 82,534,734 10,410,218
$ 1,401,231 $ 81,386,829 $ 4,137,884
Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(36)
Business-Type Activities -
Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 8,178,061 $ 7,132,652 $ 5,642,768 Cash Paid to Suppliers for Goods and Services (6,945,059) (4,126,923) (1,904,813) Cash Paid to Employees for Services (4,468,717) (2,406,589) (1,791,874) Net Cash Provided (Used) by Operating Activities (3,235,715) 599,140 1,946,081
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Cash Transfers Out (567,515) (1,841,387) (190,822)
Cash Transfers In 567,515 188,208 190,822
Repayments Received from Other Funds 117,173 - -
Payments Made to Other Funds - - -
Proceeds from Noncapital Debt - - -
Principal Paid on Noncapital Debt Issues (328,104) (108,864) (110,376) Payment for Cost of Issuance - - -
Interest Paid on Noncapital Debt (239,650) (79,452) (80,462) GASB Lease Incentive (25,000) -
Cash Received from Other Governments 32,627 - -
Net Cash Provided (Used) by Noncapital
Financing Activities (417,954) (1,866,495) (190,838)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (1,114,811) (55,464) (3,666,455) Principal Paid on Capital Debt - - (340,000)
Interest Paid on Capital Debt - - (205,488)
Proceeds from Sale of Capital Assets - - -
Net Cash Used by Capital and Related
Financing Activities (1,114,811) (55,464) (4,211,943)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 1,161,095 456,566 741,795
Net Cash Provided (Used) by Investing Activities 1,161,095 456,566 741,795
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (3,607,385) (866,253) (1,714,905)
Cash and Cash Equivalents - Beginning of Year 10,043,321 1,820,542 19,044,369
CASH AND CASH EQUIVA
Preliminary
LENTS - END OF YEAR $ 6,435,936 $ 954,289 $ 17,329,464
Draft
CITY OF REDONDO BEACH
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(37)
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 NONCAPITAL
FINANCING ACTIVITIES
Cash Transfers Out
Cash Transfers In
Repayments Received from Other Funds
Payments Made to Other Funds
Proceeds from Noncapital Debt
Principal Paid on Noncapital Debt Issues
Payment for Cost of Issuance
Interest Paid on Noncapital Debt
GASB Lease Incentive
Cash Received from Other Governments
Net Cash Provided (Used) by Noncapital
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 Used by Capital and Related
Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received
Net Cash Provided (Used) by Investing Activities
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
Business-Type Activities -
Enterprise Funds Governmental
Other Activities -
Nonmajor Internal
Enterprise Funds Totals Service Funds
$ 7,181,836 $ 28,135,317 $ 25,697,446
(10,853,421) (23,830,216) (20,882,982)
(1,664,641) (10,331,821) (6,307,261)
(5,336,226) (6,026,720) (1,492,797)
(137,235) (2,736,959) (594,409)
2,277,815 3,224,360 594,409
- 117,173 -
- - -
- - 646,240
(79,380) (626,724) (488,387)
- - -
(57,822) (457,386) (167,258)
- (25,000) -
5,032,535 5,065,162 -
7,035,913 4,560,626 (9,405)
(639,309) (5,476,039) (3,493,845)
- (340,000) (123,139)
- (205,488) (90,200)
- - 115,613
(639,309) (6,021,527) (3,591,571)
- 2,359,456 47,385
- 2,359,456 47,385
1,060,378 (5,128,165) (5,046,388)
2,325,326 33,233,558 35,848,003
Preliminary
$ 3,385,704 $ 28,105,393 $ 30,801,615
Draft
CITY OF REDONDO BEACH
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(38)
Business-Type Activities -
Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ (3,452,008) $ 154,840 $ 1,879,658 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Depreciation and Amortization 565,103 382,990 728,479
Loss on CIP write-off - - -
(Increase) Decrease In:
Accounts Receivable (129,169) 3,100 (6,151)
Taxes Receivable - - 4,641
Leases Receivable 1,742,779 (2,549,458) -
Deferred Outflow Pension Related Items 430,999 34,561 209,706 Deferred Outflow OPEB Related Items (10,220) (19,118) (7,512) Prepaid Expense - - -
Increase (Decrease) In:
Accounts Payable (541,971) (62,855) (848,482)
Deposits Payable - (15,483) -
Unearned Revenue - - -
Claims and Judgments - - -
Net Pension Liability 436,837 317,051 74,268
OPEB Liability (5,338) 41,951 9,677
Deferred Pension Related Items (123,600) (55,590) (73,582) Deferred OPEB Related Items (66,029) (19,284) (21,237)
Deferred Inflow Lease Related Items (2,045,969) 2,372,327 - Compensated Absences (37,129) 14,108 (3,384)
Net Cash Provided (Used) by Operating Activities $ (3,235,715) $ 599,140 $ 1,946,081 Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(39)
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Depreciation and Amortization
Loss on CIP write-off
(Increase) Decrease In:
Accounts Receivable
Taxes Receivable
Leases Receivable
Deferred Outflow Pension Related Items
Deferred Outflow OPEB Related Items
Prepaid Expense
Increase (Decrease) In:
Accounts Payable
Deposits Payable
Unearned Revenue
Claims and Judgments
Net Pension Liability
OPEB Liability
Deferred Pension Related Items
Deferred OPEB Related Items
Deferred Inflow Lease Related Items
Compensated Absences
Net Cash Provided (Used) by Operating Activities
Business-Type Activities -
Enterprise Funds Governmental
Other Activities -
Nonmajor Internal
Enterprise Funds Totals Service Funds
$ (5,334,032) $ (6,751,542) $ (6,174,007)
260,624 1,937,196 1,791,770
- - 45,362
(24,927) (157,147) 8,812
(1,116) 3,525 -
- (806,679) -
188,343 863,609 (54,210)
(2,522) (39,372) (44,430)
- - 11,910
(374,652) (1,827,960) (1,243,798)
- (15,483) -
(469) (469) -
- - 3,481,716
64,437 892,593 755,597
(3,849) 42,441 100,016
(65,436) (318,208) (151,874)
(21,385) (127,935) (39,760)
- 326,358 -
(21,242) (47,647) 20,099
$ (5,336,226) $ (6,026,720) $ (1,492,797)
Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(40)
Private-Purpose
Trust Fund
Redevelopment
Custodial Obligation
Funds Retirement Fund
ASSETS
Pooled Cash and Investments $ 178,012 $ 1,717,335
Receivables:
Accounts 37,758 67,571
Accrued Interest - 22,189
Total Assets 215,770 1,807,095
LIABILITIES
Accrued Interest - 94,870
Due to Other Governments - 3,254,988
Long-Term Liabilities:
Due in One Year - 1,790,275
Due in More than One Year - 9,238,750
Advances from City - 535,731
Total Liabilities - 14,914,614
NET POSITION
Restricted for Other Purposes 215,770 (13,107,519)
Total Net Position $ 215,770 $ (13,107,519)
Preliminary Draft
CITY OF REDONDO BEACH
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Basic Financial Statements.
(41)
Private-Purpose
Trust Fund
Redevelopment
Custodial Obligation
Funds Retirement Fund
ADDITIONS
Charges for Services $ - $ 267,634
RRTTF Distributions - 2,142,756
Investment Earnings - 122,024
Total Additions - 2,532,414
DEDUCTIONS
Interest Expense - 189,742
Contributions to Other Governments - 811,366
Total Deductions - 1,001,108
CHANGES IN NET POSITION - 1,531,306
Net Position - Beginning of year 215,770 (14,638,825)
NET POSITION - END OF YEAR $ 215,770 $ (13,107,519)
Preliminary Draft
(42)
NOTES TO FINANCIAL STATEMENTS
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Redondo Beach, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.
A. Financial Reporting Entity
The City was incorporated on April 29, 1892, under the laws of the State of California and enjoys all the rights and privileges applicable to a Charter City. It is governed by an elected Mayor and a five-member council.
As required by GAAP, the financial statements present the City and its component units, entities for which the City is substantively the same governing body of the component unit's governing body and there is either a financial benefit or burden relationship between the City and the component units. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units:
The Parking Authority of the City of Redondo Beach (Parking Authority) was established on March 3, 1969, pursuant to the provisions of the Streets and Highway Code of the State of California. The principal purpose of the Parking Authority is to provide public offstreet parking within the City. The Parking Authority serves all the citizens of the government and is governed by a board comprised of the government's elected council.
The Parking Authority is considered a blended component unit due to the financial benefit or burden relationship the Parking Authority shares with the City as its financial transactions are reported in a Debt Service Fund. Separate financial statements are not prepared for this blended component unit.
The Redondo Beach Housing Authority (Housing Authority) was formed on June 2, 1975, for the purpose of providing affordable, decent housing for lower income residents of the City. The Housing Authority operates the Fair Housing and Section 8 housing programs. The Housing Authority serves all the citizens of the government and is governed by a board comprised of the government's elected council. The Housing Authority is considered a blended component unit due to the financial benefit or burden relationship the Housing Authority shares with the City as its financial transactions are reported in a Special Revenue Fund. Separate financial statements are not prepared for this blended component unit.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A. Financial Reporting Entity (Continued)
The Redondo Beach Public Financing Authority (Public Financing Authority), a joint powers authority, was formed on June 25, 1996, to provide financing for capital improvement projects. The Redevelopment Agency joined with the City to form the Public Financing Authority to operate rental property and issue bonds to provide funds for public capital improvements. The Public Financing Authority has the same governing board as the City, which also performs all accounting and administrative functions for the Public Financing Authority. The Public Financing Authority is considered a blended component unit due to the financial benefit or burden relationship the Public Financing Authority shares with the City as its financial transactions are reported in a Debt Service Fund. Separate financial statements are not prepared for this blended component unit.
The Redondo Beach Community Financing Authority (Community Financing Authority), a joint powers authority, was formed on January 31, 2012, to provide financing for capital improvement projects as the State's elimination of the Redevelopment Agency, which was a member of the Public Financing Authority, created the need for a new financing authority. The Parking Authority joined with the City to form the Community Financing Authority. The Community Financing Authority has the same governing board as the City, which also performs all accounting and administrative functions for the Community Financing Authority. The Community Financing Authority is considered a blended component unit due to the financial benefit or burden relationship the Community Financing Authority shares with the City as its financial transactions are combined with the Public Financing Authority and reported in a Debt Service Fund. The Community Financing Authority does not issue separate financial statements.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Government-Wide Financial Statements
The City's government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, deferred inflows of resources, and liabilities, including capital assets (as well as infrastructure assets) and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses reported for specific functions.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regard to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Due to/from other funds
Advances to/from other funds
Transfers in/out
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balances for all major governmental funds and nonmajor funds aggregated. The City has presented all major funds that have met the applicable criteria.
All governmental funds are accounted for on a spending, or "current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. the statement of revenues, expenditures and changes in fund balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, except for revenues subject to accrual (generally 60 days after year-end), which are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales taxes, franchise taxes, special assessments, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unavailable revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unavailable or unearned revenue is removed, and revenue is recognized.
The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach of GASB Statement No. 34.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
The City reports the following major governmental funds:
General Fund – The City's primary operating fund that accounts for all financial resources of the general government except those required to be accounted for in another fund.
Other Intergovernmental Grants Special Revenue Fund – To account for federal, state and other governmental agencies grant funding that supplements local funding. Low-Mod Income Housing Asset Special Revenue Fund – To account for all transferred housing assets of the dissolved Redevelopment Agency and funds generated from those housing assets.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses, and changes in net position, and a statement of cash flows for each proprietary fund. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses, and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(48)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
The City reports the following enterprise funds as major proprietary funds:
Harbor Tidelands Fund – To account for the operations of small boat harbor facilities available to the general public, including related pier activities. The use of this fund is restricted under the City Tideland Trust Agreement with the State of California. Harbor Uplands Fund – To account for the operations of small boat harbor facilities available to the general public, including related pier activities. The use of this fund is subject only to the decisions of the City Council.
Wastewater Fund – To account for the capital facility charge and a sewer user fee.
The charges are designed to reimburse the City's wastewater system for the capital and maintenance and operations costs necessary for providing wastewater capacity to system users. These charges are associated with the expansion of the system required over time to address increases in wastewater flow generated by new development.
Fiduciary Fund Financial Statements
Fiduciary Funds are using the "economic resources" measurement focus and the accrual basis of accounting. The City reports a private-purpose trust and a custodial fund. Private-purpose trust funds are used to report trust arrangements under which principal and income benefit individuals, private organizations, or other governments.
Custodial funds account for assets held by the city for other governments or individuals in a custodial capacity.
C. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition.
Cash and cash equivalents are combined with investments and displayed as Cash and Investments.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(49)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Cash, Cash Equivalents, and Investments (Continued)
The City participates in an investment pool managed by the state of California, titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the state of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.
In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures, certain disclosure requirements, if applicable, are provided for deposit and investment risk in the following areas:
Interest Rate Risk
Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
Foreign Currency Risk
For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account.
D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, or to serve as collateral for debt. Cash and investments are also restricted for deposits held for others within the enterprise funds.
E. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
F. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans)." Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as "internal balances." Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(50)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Capital Assets
In the Government-Wide Financial Statements, capital assets, which include land, buildings, right-to-use buildings, improvements, equipment, furniture, subscriptions and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities. Capital assets are recorded at historical cost or estimated historical cost if actual cost is not available. Donated assets and capital assets received in a service concession are valued at their acquisition value rather than fair value. City policy has set the capitalization threshold for reporting capital assets at the following:
General Capital Assets $ 5,000
Infrastructure Capital Assets 25,000
Buildings, Paring Structures, and Parking Lots 100,000
The City has chosen the Modified Approach for reporting of the Street Pavement Subsystem infrastructure assets, and as a result no depreciation is recorded for that system; instead, all expenditures made for these assets, except for additions and improvements, are expensed in the year incurred. For all other assets, depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings and Improvements 5 to 45 Years
Equipment 5 to 20 Years
Vehicles 4 to 20 Years
Infrastructure 5 to 60 Years
The City defines infrastructure as the physical assets that allow the City to function.
These assets include:
Streets system
Site amenities such as parking and landscaped areas used by the City in the conduct of its business
Underground utilities
Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, etc. Subsystem detail is not presented in these financial statements; however, the City maintains detailed information on these subsystems.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(51)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Capital Assets (Continued)
In May 2020, a physical assessment of all pavement segments was conducted to assess the existing surface condition of each of the individual pavement segments. Upon completion of the study, a Pavement Condition Index (PCI) was calculated for each segment in the City's pavement network to reflect the overall pavement condition.
Ratings ranged from 0 to 100. A PCI of 0 would correspond to badly deteriorated pavement with virtually no remaining life; a PCI of 100 would correspond to pavement with proper engineering design and construction at the beginning of its life cycle. During the year, the comprehensive survey is updated to reflect the pavement's current condition.
The following conditions were defined:
Condition Rating
Very Good 70-100
Good 50-69
Poor 25-49
Very Poor 0-24
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. For 2022, 2023, and 2024, the City's street system was rated at a PCI of ____, 70, and 69 on the average, respectively.
For a detailed description of the Modified Approach, see the Required Supplementary Information section of this report.
For all other infrastructure systems, the City elected to use the Basic Approach for infrastructure reporting. As such, the City records the assets at historical cost and depreciates them over their useful lives, and regularly evaluates them for impairment.
Expenditures that extend the life of the asset are capitalized.
In the governmental fund financial statements, capital assets are not presented.
Consequently, capital assets are a reconciling item and are shown in the reconciliation of the balance sheet of governmental funds to the statement of net position.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(52)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities.
In the fund financial statements, governmental fund types do not recognize interest payable, while proprietary fund and fiduciary fund types recognize the interest payable when the liability is incurred.
I. Unearned/Unavailable Revenue
In the financial statements, unearned revenue is recognized for transactions in which revenue has not yet been earned, and unavailable revenue is recognized for transactions in which revenue is measurable but not available. Typical transactions recorded as unearned revenues in the financial statements are prepaid charges for services, and grants received but not yet earned. Typical transactions recorded as unavailable revenues in the financial statements are long term loans receivable, and reimbursable grants that are not collected in the City's availability period.
J. Compensated Absences Payable
Only the short-term liability for compensated absences (the amount due to employees for future absences, such as vacation and compensatory time, which are attributable to services already rendered) is reported as a current liability in the governmental funds and only if they have matured, for example, as a result of employee resignations and retirements; the long-term liability is reported in the government-wide financial statements. The short-term liability is the amount that will be liquidated with current financial resources and is expected to be paid during the next fiscal year. All of the liability for compensated absences applicable to proprietary funds is reported in those funds.
Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Employees may accrue from two to three times their annual accrual rate.
Upon termination an employee will be paid for any unused accrued vacation pay. Sick leave is payable when an employee is unable to work because of illness. Unused sick leave is forfeited upon termination.
K. Claims and Judgments Payable
The short-term and long-term claims are reported as liabilities in the Self-Insurance Program Internal Service Fund. The short-term liability which will be liquidated with current financial resources is the amount of the settlement reached, but unpaid, related to claims and judgments entered.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(53)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable is reported net of the applicable bond premium or discount.
Fund Financial Statements
The fund financial statements do not present long-term debt. Consequently, long-term debt is a reconciling item and is shown in the reconciliation of the balance sheet of governmental funds to the statement of net position.
Bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount.
M. Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS' website under Forms and Publications.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP)
Preliminary
July 1, 2022 to June 30, 2023
Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(54)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan), the assets of which are held by California Employers' Retiree Benefit Trust (CERBT), and additions to/deductions from the OPEB Plan's fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023
Measurement Period (MP) July 1, 2022 to June 30, 2023
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual
earnings on pension plan investments
5 Years
All other amounts Expected average remaining service lifetime (EARL) (8.5 years at July 1, 2021)
O. Net Position
In the Government-Wide Financial Statements, net position is classified in the following categories:
Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments.
Unrestricted Net Position – This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position." Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(55)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Fund Balances
In the Governmental Fund Financial Statements, fund balances are classified in the following categories:
Nonspendable – Nonspendable fund balances are items that are not expected to be converted to cash, such as prepaid items and inventories, or items that are required to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted – Restricted fund balances include amounts that can be spent only for the specific purposes stipulated by external resources providers, such as grant providers, constitutionally, or through enabling legislation. Effectively, restrictions may be changed or lifted only with the consent of resource providers.
Committed – Committed fund balances include amounts that can be used only for the specific purposes when the City Council passes a resolution that places specific constraints on how the resources may be used. The City Council can modify or rescind the resolution at any time through passage of an additional resolution.
Assigned – Assigned fund balances comprise amounts intended to be used by the government for specific purposes, but are neither restricted nor committed. Intent is expressed when the City Council approves which resources should be assigned to expenditures of particular purposes during the adoption of the annual budget. The City Manager uses that information to determine whether those resources should be classified as assigned or unassigned for presentation in the City's fund financial statements.
Unassigned – Unassigned fund balance is a residual (surplus) classification used for the General Fund only and includes amounts not contained in the other classifications.
Unassigned amounts in the General Fund are technically available for any purpose. If a governmental fund, other than the General Fund, has a fund balance deficit, it will be reported as a negative amount in the unassigned classification in that fund.
Q. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(56)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Spending Policy (Continued)
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City's policy is to apply in the following order, except for instances wherein an ordinance specifies the source:
Restricted
Committed
Assigned
Unassigned
R. Property Taxes
Under California law, property taxes are assessed and collected by the counties on up to 1% of assessed property value, plus other increases approved by the voters. Property taxes collected are pooled and then allocated to the cities based on complex formulas.
January 1 Lien Date
June 30 Levy Date
November 1 and February 1 Due Dates
December 10 and April 10 Collection Date
S. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(57)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City only has three items that qualify for reporting in this category. One is the deferred charge on refunding reported in the governmentwide statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunding or refunded debt.
Secondly, the City also has deferred outflows related to pensions, which arises only under a full accrual basis of accounting. Accordingly, this item (pension related items), is reported only in the government-wide statement of net position. This includes pension contributions subsequent to the measurement date of the net pension liability and other amounts (see Note 11), which are amortized by an actuarial determined period. Thirdly, the City has deferred outflows related to Other Postemployment Benefits (OPEB), which include contributions subsequent to the measurement date of the total OPEB liability and other amounts:
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has several items that qualify for reporting in this category:
1. Unavailable revenue reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from grant revenues. These amounts are deferred and recognized as an inflow of resources in the period when they become available.
2. Pension and OPEB related deferred inflows are reported only on the statement of net position. The government reports deferred inflows of resources related to items arising from certain changes in the net pension liability, net pension asset, net OPEB asset or net OPEB liability. Deferred inflows and outflows of resources related to changes in the net pension liability, net pension asset, net OPEB asset or net OPEB liability are recognized systematically over time. Amounts are first recognized in the year the change occurs. The remaining amounts are to be recognized in future periods. The recognition period differs depending on the source of the change, and the changes are currently amortized over 5 years or the average remaining service life time.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(58)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Deferred Outflows/Inflows of Resources (Continued)
3. A deferred inflow of resources related to leases is reported for the value of lease receivable payments to be recognized as an inflow of resources in a systematic and rational manner over the term of the lease agreements.
U. New GASB Pronouncements Effective during Fiscal Year The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early implemented for the fiscal year ended June 30, 2023:
GASB Statement No. 100, Accounting Changes and Error Corrections.
In June 2022, the GASB issued GASB Statement No. 100, Accounting Changes and Error Corrections. This standard enhances accounting and financial reporting requirements for accounting changes and error corrections. Included in the category of accounting changes is changes to or within the financial reporting entity, which results from a change in the fund’s presentation as major or nonmajor. The City adopted the requirements of the guidance effective July 1, 2023 and has applied the provisions of this standard to the beginning of the period of adoption.
NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balance
The following funds had a deficit balance as of June 30, 2024:
Major Funds:
Other Intergovernmental Grants $ (6,733,249)
Nonmajor Funds:
Local Transportation Article 3 (73,332)
Community Development Block Grant (22,425)
Internal Service Funds:
Building Occupancy (318,327)
Self-Insurance Program (16,227,925)
Private-Purpose Trust Fund (13,107,519)
The deficit fund balances are expected to be recovered through grant and other reimbursement revenues. For the Private-Purpose Trust Fund, deficit will be recovered from future payments from the County Redevelopment Property Tax Trust Fund.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(59)
NOTE 3 CASH AND INVESTMENTS
Cash and investments are presented on the statement of net position as follows at June 30, 2024:
Government-Wide Statement of Net Position
Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and Investments $ 96,773,489 $ 28,104,520 $ 124,878,009 $ 1,895,347 $ 126,773,356 Restricted Cash and Investments
with Fiscal Agents 55,246 873 56,119 - 56,119
Total $ 96,828,735 $ 28,105,393 $ 124,934,128 $ 1,895,347 $ 126,829,475 Cash, cash equivalents, and investments consisted of the following at June 30, 2024:
Cash and Cash Equivalents:
Petty Cash $ 13,450
Demand Deposits - City 17,899,293
Demand Deposits - Successor Agency 1,656,515
Total Cash and Investments 19,569,258
Investments:
Local Agency Investment Fund (LAIF) - City 289,521
Local Agency Investment Fund (LAIF) -
Successor Agency 1,959,343
Negotiable Certificates of Deposit 245,520
Money Market Mutual Funds 18,202,927
Corporate Bonds 8,363,570
U.S. Government Securities 32,608,610
Federal Agency Securities 45,535,230
Total Investments 107,204,721
Total Cash and Investments 126,773,979
Cash and Investments with Fiscal Agents 55,496
Total $ 126,829,475
A. Cash Deposits
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures.
Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(60)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
B. Investments
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:
United States Treasury Bills, Notes and Bonds
Obligations issued by the Federal Government
Bankers' Acceptances with a maturity of 180 days or less Time Certificates of Deposits
Negotiable Certificates of Deposit
Commercial Paper with a maturity of 270 days or less
Local Agency Investment Fund (LAIF) limited to $65,000,000 by LAIF Medium-Term Notes (5 year maximum) of Domestic Corporations or Depository Institutions
Mutual Funds
Guaranteed Investment Contracts not to exceed $5 million annually Certificate of Deposit Placement Services
Collateralized Bank Deposits
Supranationals
The City investment policy applies to all financial assets, investment activities and debt issues of the City (including funds which are invested by trustees appointed under debt trust indentures, with direction from the City Treasurer).
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments with LAIF at June 30, 2024, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities.
Structured Notes – Debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/ or that have embedded forwards or options.
Asset-Backed Securities – Generally mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2024, the City and the Successor Agency had $2,248,865 invested in LAIF, which had invested 0.201% of the pool investment funds in Structured Notes and Mortgage-Backed Securities. The LAIF fair value factor of 0.996316042 was used to calculate the fair value of the investments in LAIF.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(61)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
C. Deposit and Investment Risk
Credit Risk
The City's investment policy limits investments in medium-term notes (MTN's) to those rated "A" or higher by Standard and Poor's (S&P) or "A2" or higher by Moody's. As of June 30, 2024, all MTN's were rated "A2" or higher by Moody's. As of June 30, 2024, the City's Federal Agency investments were rated "AA+" by Moody's and "Aaa" by S&P. All securities were investment grade and were in accordance with State and City law.
Investments in U.S. government securities are not considered to have credit risk; therefore, their credit quality is not disclosed. As of June 30, 2024, the City's investments in external investment pools are unrated.
Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party.
The carrying amounts of the City's cash deposits were $16,165,228 at June 30, 2024.
Bank balances at June 30, 2024, were $19,913,905 which were fully insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The fair value of pledged securities must equal at least 110% of the City's cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
Concentration of Credit Risk
The City's investment policy imposes restrictions on the maximum percentage it can invest in a single type of investment. Investments in Federal Agencies have the implied guarantee of the United States government. While all the City's investments are in compliance with the City's investment policy as of June 30, 2024, in accordance with GASB Statement No. 40, if a City has invested more than 5% of its total investments in any one issuer, they are exposed to concentration of credit risk. Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(62)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
C. Deposit and Investment Risk (Continued)
Concentration of Credit Risk (Continued)
As of June 30, 2024, the City has invested more than 5% of its total investment value with the following issuers:
% of Total
Investments
Federal Home Loan Bank $ 18,233,620 16%
Federal Farm Credit Bank 7,884,260 16%
Federal National Mortgage Association 4,923,400 4%
Federal Home Loan Mortgage Corporation 14,493,950 13%
Total $ 45,535,230 49%
Interest Rate Risk
The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy states that at least 50% of the City's portfolio shall mature in three years or less; and at least 25% in one year or less. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2024, the City had the following investments and remaining maturities:
Investment Maturities
Investment Types Up to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years Fair Value External Investment Pools -
Local Agency Investment
Fund $ 2,248,864 $ - $ - $ - $ 2,248,864
Negotiable Certificate of
Deposits 245,520 - - - 245,520
U.S. Treasury Notes 6,912,140 21,097,560 4,598,910 - 32,608,610 Federal Agencies:
Federal Farm Credit Bank 2,987,460 - - 4,896,800 7,884,260 Federal Home Loan Bank 6,946,820 - 11,286,800 - 18,233,620 Federal Home Loan
Mortgage Corporation - - 9,515,900 4,978,050 14,493,950 Federal National Mortgage
Association 4,923,400 - - - 4,923,400
Money Market 18,202,927 - - - 18,202,927
Corporate Bonds 1,938,880 4,424,830 1,999,860 - 8,363,570 Preliminary
Total Investments $ 44,406,011 $ 25,522,390 $ 27,401,470 $ 9,874,850 $ 107,204,721 Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(63)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
C. Deposit and Investment Risk (Continued)
Fair Value Measurements
GASB Statement No. 72, Fair Value Measurements and Application, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs other than quoted prices that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2024.
Fair Value Measurement Using
Level 1 Level 2 Level 3 Total
Investments by Fair Value Level:
U.S. Treasury Notes $ 32,608,610 $ - $ - $ 32,608,610
Federal Farm Credit Bank - 7,884,260 - 7,884,260
Federal Home Loan Bank - 18,233,620 - 18,233,620
Federal Home Loan Mortgage
Corporation - 14,493,950 - 14,493,950
Federal National Mortgage
Association - 4,923,400 - 4,923,400
Money Market 18,202,927 - - 18,202,927
Corporate Bonds - 8,363,570 - 8,363,570
Negotiable Certificates of Deposit - 245,520 - 245,520
Total Investments by
Fair Value Level $ 50,811,537 $ 54,144,320 $ - 104,955,857 Investments Measured at Net
Asset Value:
Local Agency Investment
Fund (LAIF) 2,248,864
Total Investments $ 107,204,721
Investments classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Investments classified in Level 2 of the fair value hierarchy are valued using specified fair value factors. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(64)
NOTE 4 RECEIVABLES
The following is a summary of receivables net of allowances for uncollectible amounts at June 30, 2024:
Government-Wide Fiduciary
Statement of Net Position Funds
Governmental Business-Type Statement of
Activities Activities Net Position Total
Accounts Receivable $ 2,835,686 $ 1,482,244 $ 105,329 $ 4,423,259 Taxes Receivable 4,966,429 178,672 - 5,145,101
Accrued Interest Receivable 453,922 321,953 22,189 798,064 Notes and Loans Receivable 2,405,808 - - 2,405,808
Leases Receivable 5,812,597 69,830,037 - 75,642,634
Total $ 16,474,442 $ 71,812,906 $ 127,518 $ 88,414,866
At June 30, 2024, the Fund Financial Statements show the following receivables:
A. Accounts Receivable
Accounts receivable consisted of amounts accrued in separate funds in the ordinary course of operations. The total amount of accounts receivable for each major fund and nonmajor fund in the aggregate as of June 30, 2024, was as follows:
Governmental Funds:
General Fund $ 2,153,295
Other Intergovernmental Grants 502,174
Remaining Governmental Funds 125,763
Total Governmental Funds 2,781,232
Proprietary Funds:
Harbor Tidelands 754,193
Harbor Uplands 350,950
Wastewater 27,199
Other Nonmajor Enterprise Funds 349,902
Internal Service Funds 54,454
Total Proprietary Funds 1,536,698
Preliminary
Total $ 4,317,930
Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(65)
NOTE 4 RECEIVABLES (CONTINUED)
B. Accrued Interest Receivable
Interest receivable consists of interest from investments pooled by the City and is distributed among the funds according to their ending cash balances. The interest receivable as of June 30, 2024, was as follows:
Governmental Funds:
General Fund $ 369,305
Remaining Governmental Funds 84,617
Total Governmental Funds 453,922
Proprietary Funds:
Harbor Tidelands 154,763
Harbor Uplands 77,384
Wastewater 89,806
Total Proprietary Funds 321,953
Total $ 775,875
C. Taxes Receivable
At June 30, 2024, the City had the following taxes receivable:
Government Funds Proprietary Funds
Nonmajor
General Governmental Wastewater Solid Waste
Fund Funds Fund Fund Total
Types of Taxes:
Property Taxes $ 1,024,707 $ 189,895 $ 77,922 $ 100,750 $ 1,393,274 Sales Taxes 2,023,464 - - - 2,023,464
Transient Occupancy Taxes 679,167 - - - 679,167
Utility Users Taxes 679,791 - - - 679,791
Franchise Taxes 196,552 - - - 196,552
Transfer Taxes 172,854 - - - 172,854
Total Taxes $ 4,776,535 $ 189,895 $ 77,922 $ 100,750 $ 5,145,102 Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(66)
NOTE 4 RECEIVABLES (CONTINUED)
D. Notes and Loans Receivable
At June 30, 2024, the City had the following notes and loans receivable:
Government Funds
Low-Mod Nonmajor
General Income Governmental
Fund Housing Funds Total
Home Rehabilitation Loans $ - 389,992 $ - $ 389,992
Housing Assistance Loans - - 311,227 311,227
Senior Housing Program - 1,688,973 - 1,688,973
Computer Loan Program 15,616 - - 15,616
Total $ 15,616 $ 2,078,965 $ 311,227 $ 2,405,808
Home Rehabilitation Loans
At June 30, 2024, the City was owed, in its Low and Moderate Income Housing Asset Special Revenue Fund, $389,992 for various home rehabilitation loans made by the City.
The terms of repayment vary. Because the notes do not meet the City's availability criteria for revenue recognition, the City has classified the revenue related to these loans as deferred inflows of resources in the governmental funds. Revenue is recognized in the year of repayment. All loans are secured by trust deeds.
Housing Assistance Loans
At June 30, 2024, the City was owed, in its Community Development Block Grant Special Revenue Fund, $311,227 for various housing assistance loans made by the City. The terms of repayment vary. Because the notes do not meet the City's availability criteria for revenue recognition, the City has classified the revenue related to these loans as deferred inflows of resources. Revenue is recognized in the year of repayment. All loans are secured by trust deeds.
Senior Housing Program
On June 21, 1995, the Agency loaned $2,200,000 to the Corporate Fund for Housing (a California nonprofit public benefit corporation) for the McCandless senior housing complex. The loan term is for 45 years and bears interest at 2% per annum. Any portion of the Agency loan remaining unpaid upon the 45th anniversary of completion will be forgiven. Repayments will be made from residual receipts of the housing complex. The loan is secured by the Agency Deed of Trust. At June 30, 2024, the loan receivable included accrued interest of $1,688,973.
Computer Loan Program
The City has a computer loan program for employees to purchase computers. The maximum loan amount per employee is $1,500 with a repayment term maximum of two years. Repayments from the employees are made through payroll deductions. At June 30, 2024, the loan receivable balance was $15,616.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(67)
NOTE 5 LEASES
Leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
A. Leases Receivable and Deferred Inflows of Resources
The City entered into 40 leases as a Lessor for the use of various pieces of land and building. The terms range from 2 to 90 year beginning on the contract commencement date. As of June 30, 2024, the City reported a lease receivable of $75,642,634, $5,812,597 for governmental funds and $69,830,037 for proprietary funds, respectively.
The lessees were required to make monthly payments in fiscal year 2024 ranging from $788 to $105,400. The leases have interest rates ranging from 0.3150% to 3.5290%.
The value of the deferred inflow of resources as of June 30, 2024, was $73,983,046, $5,716,656 for governmental funds and $68,266,390 for proprietary funds respectively, and the City recognized lease revenue of $5,724,920, $266,194 for governmental funds and $5,229,868 for proprietary funds, respectively. The lessees have various extension options, ranging from one 12-month option to two 60-month options. Variable and other miscellaneous payments are not included in the amount receivable.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(68)
NOTE 5 LEASES (CONTINUED)
A. Leases Receivable and Deferred Inflows of Resources (Continued) The following is a schedule, by year, of minimum future lease rentals on noncancellable operating leases as of June 30, 2024:
Governmental Activities
Minimum Future
Year Ending June 30, Lease Interest Rental Revenue
2025 $ 453,757 97,693 $ 551,450
2026 462,856 91,032 553,888
2027 472,187 84,187 556,374
2028 429,571 77,176 506,747
2029 137,236 72,288 209,524
2030 - 2034 597,445 308,173 905,618
2035 - 2039 111,739 273,261 385,000
2040 - 2044 121,675 263,325 385,000
2045 - 2049 132,495 252,505 385,000
2050 - 2054 144,277 240,723 385,000
2055 - 2059 157,107 227,893 385,000
2050 - 2064 171,077 213,923 385,000
2065 - 2069 186,290 198,710 385,000
2070 - 2074 202,855 182,145 385,000
2075 - 2079 220,894 164,106 385,000
2080 - 2084 240,537 144,463 385,000
2085 - 2089 261,926 123,074 385,000
2090 - 2094 285,217 99,782 384,999
2095 - 2099 310,580 74,420 385,000
2100 - 2104 338,198 46,802 385,000
2105 - 2109 368,271 16,729 385,000
2110 6,407 9 6,416
Total $ 5,812,597 $ 3,252,419 $ 9,065,016
Business-Type Activities
Minimum Future
Year Ending June 30, Lease Interest Rental Revenue
2025 $ 4,115,917 $ 1,163,374 $ 5,279,291
2026 4,165,906 1,105,325 5,271,231
2027 3,528,663 1,047,024 4,575,687
2028 2,182,206 997,210 3,179,416
2029 1,999,430 957,594 2,957,024
2030 - 2034 10,066,399 4,206,028 14,272,427
2035 - 2039 6,124,511 3,478,140 9,602,651
2040 - 2044 6,669,058 2,933,593 9,602,651
2045 - 2049 7,262,023 2,340,628 9,602,651
2050 - 2054 7,907,710 1,694,941 9,602,651
2055 - 2059 8,610,806 991,845 9,602,651
2050 - 2064 5,381,002 320,651 5,701,653
2065 - 2069 1,816,406 67,457 1,883,863
2070 - 2074 - - -
Total $ 69,830,037 $ 21,303,810 $ 91,133,847
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(69)
NOTE 5 LEASES (CONTINUED)
B. Lease Payable and Right to Use Lease Assets
On July 1, 2021, City of Redondo Beach, California, entered into a 102-month lease as Lessee for the use of 1922 Artesia Boulevard – Community Services Dept Building – Chuka. An initial lease liability was recorded in the amount of $2,245,558. As of June 30, 2024, the value of the lease liability is $1,501,429. The City of Redondo Beach, California, is required to make monthly fixed payments of $20,798. The City is using an implicit interest rate of 0.4570% for this lease. The City has one extension option of 60 months should it choose to exercise it. The buildings estimated useful life was 102 months as of the contract commencement.
On February 1, 2024, City of Redondo Beach, CA entered into a 54 month lease as Lessee for the use of workstation equipment. An initial lease liability was recorded in the amount of $550,897. As of June 30, 2024, the value of the lease liability is $410,147.
The City is required to make annual fixed payments of $140,750. The City is using an implicit interest rate of 1.5132% for this lease. The workstation equipment useful life is 54 months as of the contract commencement. The City has the option to purchase the Equipment for $385 should it choose to exercise it.
The right to use leased assets at June 30, 2024, include the following:
Amount of
Leased Capital Accumulated
Lease Underlying Asset Assets Amortization
Community Service Department Building $ 2,245,558 $ 792,550 Workstation Equipment 550,897 57,385
$ 2,796,455 $ 849,935
Future principal and interest requirements to maturity for the lease liabilities are as follows:
Governmental Activities
Principal Interest Total
Year Ending June 30, Payments Payments Payments
2025 $ 393,892 $ 12,528 $ 406,420
2026 401,907 9,294 411,201
2027 410,068 6,002 416,070
2028 278,010 2,651 280,661
2029 283,958 1,363 285,321
2030 143,741 192 143,933
Total $ 1,911,576 $ 32,030 $ 1,943,606
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(70)
NOTE 6 SUBSCRIPTIONS
As of June 30, 2024, the City has 17 subscription-based information technology arrangements (SBITA) for the use of various software. The City is required to make principal and interest payments through fiscal year 2030. An initial lease liability was recorded in the amount of $1,298,779. As of June 30, 2024, the value of the subscription liability was $1,173,532. The subscriptions have interest rates ranging from 1.7103% to 3.6310%. The value of the subscription asset at June 30, 2024 is $2,101,699 with accumulated amortization of $662,306.
The subscription assets at June 30, 2024, include the following:
Subscription Accumulated
Asset Class Asset Value Amortization
Software $ 2,101,699 $ 662,306
Future principal and interest requirements to maturity for the subscription liability are as follows:
Governmental Activities
Principal Interest Total
Year Ending June 30, Payments Payments Payments
2025 $ 383,974 $ 31,679 $ 415,653
2026 345,408 21,357 366,765
2027 213,940 11,374 225,314
2028 151,001 5,572 156,573
2029 79,210 1,830 81,040
2030 - - -
Total $ 1,173,533 $ 71,812 $ 1,245,345
NOTE 7 INTERFUND TRANSACTIONS
A. Government-Wide Financial Statements
Internal Balances
At June 30, 2024, the City had the following internal receivables and payables for covering cash shortfalls:
Internal
Balances
Receivable
Governmental
Activities
Internal Balances Payable:
Business-Type Activities $ 1,292,629
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(71)
NOTE 7 INTERFUND TRANSACTIONS (CONTINUED)
A. Government-Wide Financial Statements (Continued)
Transfers
The City had the following transfers as of June 30, 2024:
Transfers In
Business-Type
Activities
Transfers Out:
Governmental Activities $ 487,401
B. Fund Financial Statements
Due to/from Other Funds
The City had the following due to/from other funds as of June 30, 2024:
Due from Other Funds
Government Funds Enterprise Funds
Other
General Governmental Harbor
Due to Other Funds Fund Funds Tidelands Total
Governmental Funds:
Other Intergovernmental
Grants $ 5,868,098 $ - $ - $ 5,868,098
Low-Mod Income Housing 861,213 - - 861,213
Other Governmental Funds 1,934,477 4,677,893 175,000 6,787,370 Enterprise Funds:
Harbor Tidelands - 544,986 - 544,986
Transit 922,643 - - 922,643
Total $ 9,586,431 $ 5,222,879 $ 175,000 $ 14,984,310
The $5,868,098 due to other funds in the Other Intergovernmental Grants Fund is to cover negative cash balances.
The $861,213 due to other funds in the Low-Mod Income Housing Fund is due to the General Fund for housing compliance services.
Of the $6,787,370 due to other funds in Other Governmental Funds, $4,677,893 is due to the Capital Improvement Projects fund to cover project expenditures, $109,478 is due to the General Fund for expenditures made on behalf of the Public Financing Authority, $175,000 is for Kincaids rental income passed through to the Harbor Tidelands Fund, $1,726,139 is due to the General for expenditure made on behalf of the Housing Authority, and $25,528 and $73,332 are due to the General Fund to cover negative cash balance in the Community Development Block Grant fund and Local Transportation Article 3 fund, respectively.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(72)
NOTE 7 INTERFUND TRANSACTIONS (CONTINUED)
B. Fund Financial Statements (Continued)
Due to/from Other Funds (Continued)
The $544,986 due to other funds in the Harbor Tidelands Fund is to cover the obligations of the Public Financing Authority (PFA) including a loan payoff and any excess of the Kincaid's Restaurant rental income.
Transfers
The City had the following transfers as of June 30, 2024:
Transfers In
Governmental Funds
Other Other
General Governmental Enterprise
Transfers Out Fund Funds Funds Total
Governmental Funds:
General Fund $ - $ 13,973,838 $ - $ 13,973,838
Other Governmental Funds - 811,366 2,140,580 2,951,946
Enterprise Funds:
Harbor Uplands 1,653,179 - - 1,653,179
Total $ 1,653,179 $ 14,785,204 $ 2,140,580 $ 18,578,963 Of the $13,973,838 transfer from the General Fund, $13,973,833 was to fund debt service payments.
The $2,140,580 transfer from the nonmajor governmental funds to the Other Enterprise Fund for a transit subsidy.
The $1,653,179 transfer from the Harbor Tidelands Enterprise Fund to the General Fund to reimburse rental payments.
NOTE 8 CAPITAL ASSETS
The City elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its street pavement system. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the "Modified Approach" is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the Basic Approach whereby accumulated depreciation and depreciation expense have been recorded.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(73)
NOTE 8 CAPITAL ASSETS (CONTINUED)
At June 30, 2024, the City's capital assets consisted of the following:
Governmental Business-Type
Activities Activities Total
Nondepreciable Assets:
Land $ 18,681,425 $ 20,773,255 $ 39,454,680
Construction in Progress 24,968,092 10,903,137 35,871,229 Infrastructure - Streets 54,054,036 - 54,054,036
Total Nondepreciable Assets 97,703,553 31,676,392 129,379,945 Depreciable Assets:
Buildings and Improvements 78,556,190 49,010,136 127,566,326 Right-to-Use Buildings 2,796,455 - 2,796,455
Right-to-Use Subscriptions 2,101,699 - 2,101,699
Furniture and Equipment 13,883,875 1,121,730 15,005,605 Automotive Equipment 21,145,210 4,077,406 25,222,616
Infrastructure 102,696,119 33,634,671 136,330,790
Total Depreciable Assets 221,179,548 87,843,943 309,023,491 Less Accumulated Depreciation for:
Buildings and Improvements 32,298,051 23,793,297 56,091,348 Right-to-Use Buildings 849,936 - 849,936
Right-to-Use Subscriptions 662,306 - 662,306
Furniture and Equipment 10,788,260 1,002,891 11,791,151 Automotive Equipment 14,233,405 2,276,422 16,509,827
Infrastructure 64,533,787 15,067,614 79,601,401
Total Accumulated Depreciation 123,365,745 42,140,224 165,505,969 Total Depreciable Assets, Net 97,813,803 45,703,719 143,517,522 Total Capital Assets, Net $ 195,517,356 $ 77,380,111 $ 272,897,467 Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(74)
NOTE 8 CAPITAL ASSETS (CONTINUED)
The following is a summary of changes in the capital assets for governmental activities during the fiscal year:
Balance at
June 30, 2023 Balance at
As Restated* Additions Deletions Transfers June 30, 2024 Nondepreciable Assets:
Land $ 16,522,947 $ 1,486,478 $ - $ 672,000 $ 18,681,425 Construction in Progress 36,310,370 9,630,901 (490,789) (20,482,390) 24,968,092 Infrastructure - Streets 54,054,036 - - - 54,054,036
Total Nondepreciable
Assets 106,887,353 11,117,379 (490,789) (19,810,390) 97,703,553 Depreciable Assets:
Buildings and Improvements 58,523,343 240,060 - 19,792,787 78,556,190 Right-to-Use Buildings 2,245,558 - - - 2,245,558
Right-to-Use Subscriptions 1,422,465 788,039 (108,805) - 2,101,699 Furniture and Equipment 13,730,204 174,497 (38,429) 17,603 13,883,875 Right-to-Use Furniture and Equipment - 550,897 - - 550,897 Automotive Equipment 19,603,617 4,653,109 (3,111,516) - 21,145,210 Infrastructure 102,696,119 - - - 102,696,119
Total Depreciable
Assets 198,221,306 6,406,602 (3,258,750) 19,810,390 221,179,548 Less Accumulated Depreciation for:
Buildings and Improvements 29,849,247 2,448,804 - - 32,298,051 Right-to-Use Buildings 528,367 264,184 - - 792,551
Right-to-Use Subscriptions 245,987 525,124 (108,805) - 662,306 Furniture and Equipment 10,230,226 596,463 (38,429) - 10,788,260 Right-to-Use Furniture and Equipment - 57,385 - - 57,385 Automotive Equipment 15,170,169 2,174,752 (3,111,516) - 14,233,405 Infrastructure 62,709,906 1,823,881 - - 64,533,787
Total Accumulated
Depreciation 118,733,902 7,890,593 (3,258,750) - 123,365,745 Total Depreciable
Assets, Net 79,487,404 (1,483,991) - 19,810,390 97,813,803 *The beginning balance has been restated to reflect adjustments to construction in progress from a prior year. See Note 17 for more information.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(75)
NOTE 8 CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions/programs of governmental activities for the fiscal year ended June 30, 2024, as follows:
General Government:
General Government $ 2,547,347
Public Safety 336,407
Public Works 2,712,176
Cultural and Leisure Services 502,893
Internal Service Funds:
Vehicle Replacement 1,189,704
Building Occupancy 19,903
Information Technology 312,854
Self-Insurance Program 5,491
Emergency Communications 233,011
Major Facilities Repair 30,807
Total Depreciation and Amortization Expense $ 7,890,593 NOTE 8 CAPITAL ASSETS (CONTINUED)
The following is a summary of changes in the capital assets for business-type activities for the year ended June 30, 2024:
Balance at
June 30, 2023 Balance at
As Restated* Additions Deletions Transfers June 30, 2024 Nondepreciable Assets:
Land $ 20,323,255 $ - $ - $ 450,000 $ 20,773,255
Construction in Progress 10,374,372 4,500,802 (114,443) (3,857,594) 10,903,137 Total Nondepreciable
Assets 30,697,627 4,500,802 (114,443) (3,407,594) 31,676,392 Depreciable Assets:
Buildings and Improvements 45,184,647 - - 3,825,489 49,010,136 Furniture and Equipment 1,094,505 27,225 - - 1,121,730
Automotive Equipment 3,698,852 644,560 (266,006) - 4,077,406 Infrastructure 33,634,671 - - - 33,634,671
Total Depreciable
Assets 83,612,675 671,785 (266,006) 3,825,489 87,843,943 Less Accumulated Depreciation for:
Buildings and Improvements 22,589,621 1,203,676 - - 23,793,297 Furniture and Equipment 989,771 13,120 - - 1,002,891
Automotive Equipment 2,277,921 264,507 (266,006) - 2,276,422 Infrastructure 14,611,721 455,893 - - 15,067,614
Total Accumulated
Depreciation 40,469,034 1,937,196 (266,006) - 42,140,224 Total Depreciable
Assets, Net 43,143,641 (1,265,411) - 3,825,489 45,703,719 Business-Type Activities
Capital Assets, Net $ 73,841,268 $ 3,235,391 $ (114,443) $ 417,895 $ 77,380,111 *The beginning balance has been restated to reflect the transfer of assets from a prior year.
See Note 17 for more information.
NOTE 8 CAPITAL ASSETS (CONTINUED)
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(76)
Depreciation expense for business-type activities for the fiscal year ended June 30, 2024, was charged as follows:
Harbor Tidelands $ 565,103
Harbor Uplands 382,990
Wastewater 728,479
Other Nonmajor Enterprise Funds 260,624
Total Depreciation and Amortization Expense $ 1,937,196 In the governmental fund financial statements, capital assets are not presented.
Consequently, capital assets are a reconciling item and are shown in the reconciliation of the governmental funds balance sheet to the government-wide statement of net position.
NOTE 9 COMPENSATED ABSENCES PAYABLE
The following is a summary of compensated absences payable transactions for the year ended June 30, 2024:
Amounts Due
Balance at Balance at Within One
June 30, 2023 Additions Deletions June 30, 2024 Year
Governmental Activities:
Compensated Absences Payable $ 3,789,527 $ 3,138,414 $ (2,882,066) $ 4,045,875 $ 1,011,469 Business-Type Activities:
Compensated Absences Payable 548,924 350,557 (398,204) 501,277 125,319 Total $ 4,338,451 $ 3,488,971 $ (3,280,270) $ 4,547,152 $ 1,136,788 The long-term portion of compensated absences payable has been accrued for the governmental activities on the government-wide financial statement. Also, compensated absences are generally liquidated by the General Fund. There is no fixed payment schedule to pay these liabilities.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(77)
NOTE 10 LONG-TERM LIABILITIES
The following is a summary of long-term liabilities transactions for the year ended June 30, 2024:
Amounts Due
Balance at Balance at Within One
June 30, 2023 Additions Deletions June 30, 2024 Year
Governmental Activities:
CFA 2019A Lease Revenue
Refunding Bonds $ 25,955,000 $ - $ (605,000) $ 25,350,000 $ 625,000 Unamortized Bond Discount (647,448) - 24,902 (622,546) - CFA Lease Revenue Bonds
Series 2021A 200,523,915 - (6,933,276) 193,590,639 6,983,716 Leases (See Note 5.B.) 1,754,910 550,897 (394,231) 1,911,576 - Subscriptions (See Note 6) 985,983 746,539 (558,990) 1,173,532 383,975 Total Governmental
Activities $ 228,572,360 $ 1,297,436 $ (8,466,595) $ 221,403,201 $ 7,992,691 Business-Type Activities:
Wastewater Revenue Refunding
2014 Series A $ 4,735,000 $ - $ (340,000) $ 4,395,000 $ 355,000 Unamortized Bond Premium 288,815 - (26,255) 262,560 -
CFA Lease Revenue Bonds -
Series 2021A 18,126,085 - (626,724) 17,499,361 631,284
Total Business-Type
Activities $ 23,149,900 $ - $ (992,979) $ 22,156,921 $ 986,284 Community Financing Authority (CFA) 2019A Lease Revenue Refunding Bonds The Community Financing Authority issued refunding revenue bonds dated February 2019, totaling $28,015,000. The proceeds of the bonds were used to refund the various leaseback contingencies and finance the purchase of a sublease between the City and Redondo Fisherman's Cove Company. The bonds bear interest at rates between 4.00% and 5.00% and interest is payable on each May 1 and November 1, commencing November 1, 2019.
The bonds are payable from base rental payments. Principal is due annually beginning on May 1, 2020, in amounts ranging from $350,000 to $1,585,000. The bonds mature on May 1, 2049. The bonds are subject to optional and mandatory early redemption provisions.
As of June 30, 2024, the balance outstanding was $25,350,000, with an unamortized discount of $622,546.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:
Year Ending June, 30, Principal Interest Total
2025 $ 625,000 $ 1,030,038 $ 1,655,038
2026 640,000 1,010,506 1,650,506
2027 665,000 989,706 1,654,706
2028 685,000 968,094 1,653,094
2029 710,000 944,975 1,654,975
2030 - 2034 3,960,000 4,296,425 8,256,425
2035 - 2039 4,830,000 3,426,237 8,256,237
2040 - 2044 5,930,000 2,329,212 8,259,212
2045 - 2049 7,305,000 957,314 8,262,314
Total $ 25,350,000 $ 15,952,507 $ 41,302,507
NOTE 10 LONG-TERM LIABILITIES (CONTINUED)
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(78)
The following is a summary of the 2019A Lease Revenue Refunding unamortized discount outstanding at June 30, 2024:
Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
$ (647,448) $ - $ 24,902 $ (622,546)
Wastewater Revenue Bonds 2014, Series A
On March 25, 2014, the City issued $7,230,000 of Wastewater Revenue Refunding Bonds for the purpose of refunding $7,230,000 of then-outstanding 2004 Wastewater Revenue Refunding Bonds. The purpose of the bonds was to finance certain improvements and related facilities that constitute part of the Wastewater Enterprise Fund. The serial bonds in the amount of $4,795,000 mature through May 1, 2029 and bear a variable interest rate ranging from 3% to 5% per annum. Term bonds in the amount of $2,435,000 mature through May 1, 2034, and bear interest at the rate of 4%. The serial bonds maturing on or after May 1, 2015, are subject to optional redemption provisions. The term bonds are subject to optional and mandatory redemption provisions. The bonds are payable solely from and secured by a pledge of and lien upon the net revenues of the Wastewater Enterprise Fund.
As of June 30, 2024, the balance outstanding was $4,395,000, with an unamortized bond premium of $262,560.
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:
Year Ending June, 30, Principal Interest Total
2025 $ 355,000 $ 188,488 $ 543,488
2026 375,000 170,738 545,738
2027 395,000 151,988 546,988
2028 405,000 139,150 544,150
2029 430,000 118,900 548,900
2030 - 2034 2,435,000 299,600 2,734,600
Total $ 4,395,000 $ 1,068,864 $ 5,463,864
The following is a summary of the 2014 Revenue Bond Series A unamortized premium outstanding at June 30, 2024:
Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
$ 288,815 $ - $ (26,255) $ 262,560
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(79)
NOTE 10 LONG-TERM LIABILITIES (CONTINUED)
Community Financing Authority (CFA) Lease revenue Bonds Series 2021A In July 2021, the Redondo Beach Community Financing Authority (CFA) issued $226,180,000 Lease Revenue Bonds Series 2021A (federally taxable) to fund a portion of the City's obligation to the California Public Employees' Retirement System. The bond will be payable from base rental payment made by the City to the Authority as rental for portion of certain street located in the City. The bonds include $115,865,000 serial bonds with principal due on May 1 of each year starting in 2023 until 2026 and ranging in amount of $7,530,000 to $9,485,000. The bonds also include term bonds in the amount of $51,785,000 and 58,530,000 due May 1, 2041 and 2049 respectively. Interest payable on the bonds range from 0.415% to 3.068% payable semiannually.
Year Ending June, 30, Principal Interest Total
2025 $ 7,615,000 $ 5,485,044 $ 13,100,044
2026 7,695,000 5,408,056 13,103,056
2027 7,795,000 5,306,406 13,101,406
2028 7,920,000 5,181,998 13,101,998
2029 8,060,000 5,039,754 13,099,754
2030 - 2034 42,970,000 22,540,718 65,510,718
2035 - 2039 48,870,000 16,644,262 65,514,262
2040 - 2044 49,920,000 9,039,890 58,959,890
2045 - 2049 30,245,000 2,510,238 32,755,238
Total $ 211,090,000 $ 77,156,366 $ 288,246,366
In the event of default, there is no remedy of acceleration of any Base Rental Payments which have not come due, and no right for the Authority to terminate the Lease and re-let the Leased Property. The sole remedy provided for in the Lease is to exercise any action at law or in equity necessary or desirable to collect the amounts due under the Lease.
In addition, the City is reporting a deferred charge on refunding as a deferred outflows of resources. The following is a summary of the amortization of the deferred charge for the fiscal year ending June 30, 2024:
Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Deferred Outflows of Resources:
Deferred Loss on Refunding
Preliminary
$ 282,785 $ - $ (25,708) $ 257,077
Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(80)
NOTE 11 RISK MANAGEMENT
The City is exposed to risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters; and currently reports all of its risk management activities in its Self-Insurance Program Internal Service Fund.
The City has adopted a self-insurance workers' compensation program, which is administered by a third-party agent, AdminSure. The self-insurance coverage for each claim is limited to $750,000. Excess coverage of up to $50,000,000 for each claim is provided by the Public Risk Innovations, Solutions, and Management (PRISM), an insurance pool, in which a consortium of counties and cities has agreed to share risks and losses. As of June 30, 2024, the estimated claims payable for workers' compensation was $14,669,120, which included claims incurred but not reported (IBNR). The current year's portion of the claims was $611,066.
For general liability claims, the City is also self-insured up to $500,000 for each occurrence.
The self-insurance program is administered by a third-party agent, AdminSure. Each claim in excess of the self-insured retention of up to $30,000,000 is covered by the CSAC-EIA. As of June 30, 2024, the estimated claims payable for general liability was $9,733,982, which included IBNR. The current year's portion was $592,111. Governmental activities claims and judgments are generally liquidated by the General Fund.
Liability on
June 30, 2024
General Liability $ 9,733,982
Workers' Compensation 14,669,120
Total Claims Payable $ 24,403,102
Due Within on Year $ 1,203,177
Due in More than One Year 23,199,925
Total Claims Payable $ 24,403,102
The following is a summary of the changes in the claim liability over the past two fiscal years. Changes in the reported liability resulted from the following:
Beginning Ending Due Within
Fiscal Year Balance Increase Decrease Balance One Year
2022 - 2023
Workers' Compensation $ 16,533,937 $ 1,331,205 $ (4,595,226) $ 13,269,916 $ 456,300 General Liabilities 7,704,242 7,423,908 (7,476,680) 7,651,470 292,264 Total $ 24,238,179 $ 8,755,113 $ (12,071,906) $ 20,921,386 $ 748,564 2023 - 2024
Workers' Compensation $ 13,269,916 $ 1,964,702 $ (565,498) $ 14,669,120 $ 611,066 General Liabilities 7,651,470 9,334,231 (7,251,719) 9,733,982 592,111 Total $ 20,921,386 $ 11,298,933 $ (7,817,217) $ 24,403,102 $ 1,203,177 Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(81)
NOTE 11 RISK MANAGEMENT (CONTINUED)
Settled claims have not exceeded any of the City's coverage amounts in any of the last three fiscal years and there were no reductions in the City's coverage during the year. The estimated claims payable for workers' compensation and general liability is based on estimates provided by the third-party administrator, the City Attorney, the Risk Management staff, and the City's actuary.
NOTE 12 EMPLOYEE RETIREMENT PLANS
A. Pension Plans
Plan Description
The Plans are agent, multiple-employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS). A full description of the pension plans regarding number of employees covered, benefit provisions, assumptions (for funding, but not account purposes), and membership information are listed in the June 30, 2022, Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. The actuarial valuation report and CalPERS' audited financial statements are publicly available reports that can be obtained at CalPERS' website, at www.calpers.ca.gov.
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
Miscellaneous
Tier 1 * Tier 2 * Tier 3
On or After
May 1, 2012
Prior to and Before On or After
Hire Date May 1, 2012 January 1, 2013 January 1, 2013
Benefit Formula 2% @ 55 2% @ 60 2% @ 62
Benefit Vesting Schedule 5 Years Service 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50-63 50-63 52-67
Monthly Benefits, as a % of Eligible
Compensation 1.426% - 2.418% 1.092% - 2.418% 1.0% - 2.5% Required Employee Contribution Rates 7.00% 7.00% 7.75%
Required Employer Contribution Rates 10.34% 10.34% 10.34% Required Employer UAL Contribution $ - $ - $ -
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(82)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Benefits Provided (Continued)
Safety
Tier 1 * Tier 2 * Tier 3
On or After
May 1, 2012
Prior to and Before On or After
Hire Date May 1, 2012 January 1, 2013 January 1, 2013
Benefit Formula Police - 3% @ 50 Police and Fire Police and Fire Fire - 3% @ 55 3% @ 55 2.7% @ 57
Benefit Vesting Schedule 5 Years Service 5 Years Service 5 Years Service Benefit Payments Monthly for Life Monthly for Life Monthly for Life Retirement Age 50-55 50-55 50-57
Monthly Benefits, as a % of Eligible
Compensation 2.4% - 3% 2.4% - 3% 2% - 2.7%
Required Employee Contribution Rates 9.00% 9.00% 13.00% Required Employer Contribution Rates 23.340% 23.340% 23.340% Required Employer UAL Contribution $ - $ - $ -
As of the valuation date of June 30, 2022, the following employees were covered by the benefit terms of the Plan:
Miscellaneous Safety
Inactive Employees or Beneficiaries Currently
Receiving Benefits 542 325
Inactive Employees Entitled to but Not Yet
Receiving Benefits 433 62
Active Employees 281 143
Total 1,256 530
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to finance the costs and benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2024, the City made $7,326,864 of employer contributions to the pension plans ($2,347,150 miscellaneous plan and $4,979,714 safety plan).
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(83)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability based on the following actuarial methods and assumptions:
Miscellaneous Safety
Valuation Date June 30, 2022 June 30, 2022
Measurement Date June 30, 2023 June 30, 2023
Actuarial Cost Method Entry Age Normal Entry Age Normal Asset Valuation Method Market Value of Assets Market Value of Assets Actuarial Assumptions:
Discount Rate 6.90% 6.90%
Inflation 2.30% 2.30%
Salary Increases (1) 3.30% to 14.20% 3.30% to 10.90%
Mortality Rate Table (2) Derived using CalPERS membership data for all funds Postretirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power
applies, 2.30% thereafter
(1) Annual increases vary by category, entry age, and duration of service. (2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.at www.calpers.ca.gov.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(84)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as followed:
Assumed
Asset Real Return
Asset Class (1) Allocation (1, 2)
Global Equity - Cap-Weighted 30.00% 4.54%
Global Equity - Noncap-Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
(1) An expected price inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(85)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Changes in the Net Pension Liability
The following tables show the changes in net pension liability recognized over the measurement period for the Miscellaneous and Safety Plans:
Plan Total Plan Fiduciary Plan Net
Pension Liability Net Position Pension Liability
Miscellaneous Plan (a) (b) (c) = (a) - (b)
Balance - June 30, 2022 - Measurement Date $ 240,496,017 $ 232,288,394 $ 8,207,623 Changes Recognized for the
Measurement Period:
Service Cost 3,441,839 - 3,441,839
Interest on the Total Pension Liability 16,219,473 - 16,219,473 Changes of Benefit Terms (2) 339,225 - 339,225
Differences between Expected
and Actual Experience (707,830) - (707,830)
Net Plan to Plan Resource Movement - (14,324) 14,324
Contributions from the Employer - 2,014,388 (2,014,388) Contributions from the Employees - 1,571,290 (1,571,290) Net Investment Income - 13,829,787 (13,829,787)
Benefit Payments, Including Refunds
of Employee Contributions (13,567,007) (13,567,007) -
Administrative Expense - (170,814) 170,814
Net Changes during 2022-23 5,725,700 3,663,320 2,062,380 Balance - June 30, 2023 - Measurement Date (1) $ 246,221,717 $ 235,951,714 $ 10,270,003 Plan Total Plan Fiduciary Plan Net
Pension Liability Net Position Pension Liability
Safety Plan (a) (b) (c) = (a) - (b)
Balance - June 30, 2022 - Measurement Date $ 421,286,399 $ 398,696,709 $ 22,589,690 Changes Recognized for the
Measurement Period:
Service Cost 6,407,011 - 6,407,011
Interest on the Total Pension Liability 28,719,706 - 28,719,706 Changes of Benefit Terms (2) 168,350 - 168,350
Differences between Expected
and Actual Experience 4,346,921 - 4,346,921
Net Plan to Plan Resource Movement - 14,324 (14,324)
Contributions from the Employer - 4,682,522 (4,682,522) Contributions from the Employees - 2,209,903 (2,209,903) Net Investment Income - 23,582,718 (23,582,718)
Benefit Payments, Including Refunds
of Employee Contributions (25,555,133) (25,555,133) -
Administrative Expense - (293,183) 293,183
Net Changes during 2022-23 14,086,855 4,641,151 9,445,704 Balance - June 30, 2023 - Measurement Date (1) $ 435,373,254 $ 403,337,860 $ 32,035,394 (1) The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary selfinsurance and OPEB expense. As described in the previous section of this note, this may differ from the plan assets reported in the funding actuarial valuation report.
(2) In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact is included in the changes of benefit terms.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(86)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability for the Plans as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Net Pension Liability (Asset)
Discount Current Discount
Rate - 1% Discount Rate + 1%
(5.90%) (6.90%) (7.90%)
Miscellaneous Plan $ 40,900,979 $ 10,270,003 $ (15,131,406) Safety Plan 86,227,678 32,035,394 (12,824,173)
Total $ 127,128,657 $ 42,305,397 $ (27,955,579)
Pension Plan Fiduciary Net Position
The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets.
These amounts are excluded for rate setting purposes in the funding actuarial valuation.
In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.
See CalPERS website for additional information.
For the measurement period ended June 30, 2023 (the measurement date) and for the reporting period ended June 30, 2024 (the reporting date), the City incurred a pension expense of $6,388,554 and $15,861,738 the miscellaneous and safety plans, respectively.
As of June 30, 2024, the following were the reported deferred outflows of resources and deferred inflows of resources related to all pension plans:
Miscellaneous Safety
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
City Pension Contribution
Subsequent to Measurement Date $ 2,347,150 $ - $ 4,979,714 $ - Difference Between Expected
and Actual Experience - (1,052,782) 3,029,672 (845,753) Change in Assumptions 1,009,614 - 4,752,553 -
Net Difference Between Projected
and Actual Earnings on Pension
Plan Investments 12,702,364 - 22,624,028 -
Total $ 16,059,128 $ (1,052,782) $ 35,385,967 $ (845,753) Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(87)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Pension Plan Fiduciary Net Position (Continued)
Contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety
Deferred Deferred
Outflows Outflows
(Inflows) (Inflows)
Measurement Period Ended June 30, of Resources of Resources 2025 $ 2,995,291 $ 10,698,759
2026 2,100,685 6,028,656
2027 7,196,867 12,179,561
2028 366,353 653,524
Total $ 12,659,196 $ 29,560,500
B. Other Postemployment Benefits
Plan Description and Eligibility
In addition to the pension benefits described above, the City provides certain health insurance benefits, in accordance with memorandums of understanding, to retired employees through the California Employers' Retiree Benefit Trust (CERBT) Fund, which is an agent multiple-employer plan administered by CalPERS. The City provides medical insurance for employees in accordance with agreements reached with various bargaining groups. The City shall pay the single retiree medical premium rate, for qualified retirees, for a medical insurance plan in which the retiree is enrolled from among those medical plans provided by the City. These contributions of the City for such medical premiums shall cease on the date the retiree becomes eligible to enroll in the Federal Medicare program and/or any Medicare supplemental plans. Membership of the plan consisted of the following at June 30, 2023 (the measurement date).
Number of
Employees
Active Employees 400
Inactives Currently Receiving Benefits 184
Inactives Entitled to But Not Yet Receiving
Benefits 330
Total 914
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(88)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
B. Other Postemployment Benefits (Continued)
Contributions
The required contribution of the City is based on a percentage of PERSable payroll. For the fiscal year ended June 30, 2024 the City's contributions were $1,970,280 ($1,560,280 of premiums and a $410,000 implicit subsidy).
Actuarial Methods and Assumptions Used to Determine Net OPEB Liability The City's net OPEB Liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined based on the following actuarial methods and assumptions:
Valuation Date June 30, 2023
Contribution Policy City contributes full actuarially determined contribution as a percentage of covered payroll
Discount Rate and
Long-Term Expected Rate
of Return on Assets
6.25% at June 30, 2023
6.25% at June 30, 2022
Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust
General Inflation 2.5%
Mortality, Retirement, Disability,
Termination
CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2021 Salary Increases Aggregate – 2.75% annually
Merit – CalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare – 8.5% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare – N/A
PEMHCA Minimum Increases 3.5% annually
Medical Participation for
Additional Benefit
Currently covered – 100%, 90%, 60%, 50% for employees
receiving 100%, 75%, 50%, 25% City paid premium
respectively
Not currently covered – 90% of above rates
PEMHCA Medical Participation Currently covered – 10% for 2021, increasing to ultimate rate of 50% in 2033
Not currently covered – 90% of above rates
Life Insurances Participation Future retirees: 10%
Change of Assumptions Update to medical trend assumptions Changes of Benefit Items None
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(89)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
B. Other Postemployment Benefits (Continued)
Long-Term Expected Rate of Return
The expected real rates of return by asset class are as followed:
Target
Allocation Expected
CERBT - Real Rate
Asset Class Component Strategy 1 of Return
Global Equity 49% 4.56%
Fixed Income 23% 1.56%
TIPS 5% -0.08%
Commodities 3% 1.22%
REITs 20% 4.06%
(1) Assumed Long-Term Rate of Inflation 2.50%
(2) Expected Long-Term Net Rate of Return,
Rounded to the Nearest Quarter Percent 6.25%
The long-term expected real rates of return are presented as geometric means.
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(90)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
B. Other Postemployment Benefits (Continued)
Changes in the OPEB Liability
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Balance at June 30, 2023 (Measurement
Date June 30, 2022) $ 22,122,970 $ 9,133,983 $ 12,988,987 Changes Recognized for the
Measurement Period:
Service Cost 752,978 - 752,978
Interest 1,382,435 - 1,382,435
Benefit Changes - - -
Actual Versus Expected Experience 545,675 - 545,675
Assumption Changes 575,958 - 575,958
Contributions - Employer - 1,822,393 (1,822,393)
Net Investment Income - 765,828 (765,828)
Benefit Payments (1,513,984) (1,513,984) -
Administrative Expense - (9,436) 9,436
Net Changes 1,743,062 1,064,801 678,261
Balance at June 30, 2024 (Measurement
Date June 30, 2023) $ 23,866,032 $ 10,198,784 $ 13,667,248 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using discount rate that is one percentage point lower or one percentage point higher than the current rate for the measurement period ended June 30, 2023.
Current
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability $ 15,823,845 $ 13,667,248 $ 11,777,238 Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost-trend rates that are one percentage point lower or one percentage point higher than the current rate for the measurement period ended June 30, 2023.
Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Liability $ 11,000,220 $ 13,667,248 $ 17,210,599 Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(91)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
B. Other Postemployment Benefits (Continued)
OPEB Plan Fiduciary Net Position
CalPERS issues a publicly available financial report that includes financial statements and required supplementary information. Copies of the CalPERS' annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $1,073,630. As of fiscal year ended June 30, 2024 (June 30, 2023 measurement date), the City reported deferred outflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB Contributions Subsequent to Measurement
Date $ 1,970,280 $ -
Differences Between Expected and Actual
Experience 481,478 (2,931,496)
Changes of Assumptions 1,363,594 (724,001)
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments 577,209 -
Total $ 4,392,561 $ (3,655,497)
The $1,970,280, reported as deferred outflows of resources related to contributions subsequent to measurement date will be recognized as a reduction to net OPEB liability in the year ended June 30, 20245. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:
Deferred
Outflow
(Inflows)
Year Ended June 30, of Resources
2025 $ (436,912)
2026 (419,782)
2027 (33,988)
2028 (325,119)
2029 (237,726)
Thereafter 220,311
Total $ (1,233,216)
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(92)
NOTE 13 COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are subject to audit. No cost disallowance is expected as a result of any audits. Expenditures which may be disallowed, if any, by the granting agencies cannot be determined at this time.
The City expects such amounts, if any, to be immaterial.
C. Commitments
The following material construction commitments existed at June 30, 2024:
Expenditures
Contract to Date as of Remaining
Project Name Amount June 30, 2024 Commitments
Portofino Way Sewer Pump Station $ 7,526,868 $ 2,497,100 $ 5,029,768 Manhattan Beach Blvd Resurfacing Project 3,968,958 1,341,394 2,627,564 Seaside Lagoon Revitalization 3,112,534 564,877 2,547,657 Bicycle Transportation Plan 2,352,630 - 2,352,630
International Boardwalk Repair 1,249,100 - 1,249,100
Fire Pump Communication Equipment 1,143,254 - 1,143,254 Dominguez Park Playground 1,519,619 707,561 812,058
NOTE 14 POLLUTION REMEDIATION OBLIGATIONS
The Department of Toxic Substances Control (DTSC) filed a regulatory Notice of Violation against the City regarding the Redondo Beach Police Department's gun range concerning issues with contamination from lead bullet fragments. Cleanup, fines, assessments, and settlements incurred by the City for this DTSC action were approximately $282,000. This liability has been accrued in the General Fund, and the City does not anticipate any recoveries reducing the liability, nor any further liability from this DTSC investigation as the DTSC has closed the matter.
Neighboring property owners adjacent to the gun range also filed civil claims for bodily injury and property damage due to alleged lead exposure. This matter is currently in mediation and in preparation for arbitration. Defense costs are being covered by several of the City's historical insurance policies and the related insurance carriers defending under a reservation of rights.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(93)
NOTE 14 POLLUTION REMEDIATION OBLIGATIONS (CONTINUED)
Cleanup and settlements currently are estimated to be $150,000, using assumptions based on similar cleanup and settlements previously paid in the DTSC matter. Plaintiffs' demands are significantly higher. The pollution remediation obligation is an estimate and is subject to revision because of price increases or reductions, changes in technology, changes in evidence, or changes in applicable laws or regulations. Similarly, bodily injury claims are estimated based on current evidence (or lack thereof) presented by the various plaintiffs and are subject to revision if additional admissible evidence is presented during preparation for arbitration.
NOTE 15 SUCCESSOR AGENCY
Dissolution of California Redevelopment Agencies
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California. Most cities in California had established a redevelopment agency that was included in the reporting entity of the City as a blended component unit (since the City Council, in many cases, also served as the governing board for those agencies).
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. If the City declines to accept the role of successor agency, other local agencies may elect to perform this role. If no local agency accepts the role of successor agency, the Governor is empowered by the Bill to establish a local "designated local authority" to perform this role. On January 10, 2012 the City Council met and created a Successor Agency in accordance with the Bill as part of the City's resolution number 12-01.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
A. Long-Term Debt
In future fiscal years, successor agencies will only be allocated tax revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(94)
NOTE 15 SUCCESSOR AGENCY (CONTINUED)
Dissolution of California Redevelopment Agencies (Continued) A. Long-Term Debt (Continued)
The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.
Prior to that date, the final seven months of the activity of the redevelopment agency is reported in the governmental funds of the City. After the date of dissolution, activities of the dissolved redevelopment agency are reported in a fiduciary trust fund (private purpose trust fund) in the fiduciary statements of the City.
In accordance with the provisions of Assembly Bill X1 26 (Bill) and the California Supreme Court's decision to uphold the Bill, the obligations of the former redevelopment agency became vested with the funds established for the successor agency upon the date of dissolution, February 1, 2012. Former tax increment revenues pledged to fund the debts of the former redevelopment agency will be distributed to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill.
The debt of the Successor Agency as of June 30, 2024 is as follows:
Amounts Due
Balance at Balance at Within One
June 30, 2023 Additions Deletions June 30, 2024 Year
Successor Agency:
County Deferral Loan - 1983
Tax Increment $ 4,683,632 $ - $ 867,944 $ 3,815,688 $ 430,832 County Deferral Loan - 1984
Tax Increment 5,602,499 - 509,162 5,093,337 714,443
City Loan - South Bay Center 2,715,000 - 595,000 2,120,000 645,000 Preliminary
Total $ 13,001,131 $ - $ 1,972,106 $ 11,029,025 $ 1,790,275 Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(95)
NOTE 15 SUCCESSOR AGENCY (CONTINUED)
Dissolution of California Redevelopment Agencies (Continued) A. Long-Term Debt (Continued)
1983 Tax Increment Deferral – On November 15, 1983, the Agency and the County of Los Angeles (County) entered into an agreement for reimbursement of tax increment funds. It was recognized that the South Bay Center Project Area needed to utilize a substantial portion of the annual tax increment in the early years to finance its redevelopment activities. Therefore, the County taxing entities agreed to defer receipt of tax increment reimbursement from the Agency. This deferral is debt of the Agency to be repaid only from the Agency's share of future pledged tax increment. There is no fixed payment schedule to repay this loan and the loan is noninterest bearing. The balance outstanding at June 30, 2024, was $3,815,688.
1984 Tax Increment Deferral – On February 14, 1984, the Agency and the County entered into an agreement for reimbursement of tax increment funds. It was recognized that the Aviation High School Project Area needed to utilize a substantial portion of the annual tax increment in the early years to finance its redevelopment activities. Therefore, the County taxing entities agreed to defer receipt of tax increment reimbursement from the Agency. This deferral is debt of the Agency to be repaid only from the Agency's share of future pledged tax increment. There is no fixed payment schedule to repay this loan and the loan is noninterest bearing. The balance outstanding at June 30, 2024, was $5,093,337.
South Bay Center City Loan – On July 1, 1996, the Public Financing Authority advanced $8,660,000 to the former Redevelopment Agency for improvements within the South Bay Center Redevelopment Project Area. This advance was made through the Authority's purchase of the Agency's 1996 tax allocation bonds and bears interest at
8.95% per annum. As of June 30, 2024, the balance outstanding was $2,120,000.
B. Advances from City
During the 2014-2015 fiscal year, the Successor Agency Oversight Board adopted resolutions approving the repayment of loans from the Low and Moderate Income Housing fund of the former Redevelopment Agency for legally required payments to the Supplemental Educational Revenue Augmentation Fund (SERAF) for Fiscal Years 2009- 2010 and 2010
Preliminary
-2011. As of June 30, 2024, the outstanding balance was $535,731.
Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(96)
NOTE 16 RISKS AND UNCERTAINTIES
A. Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.
B. Successor Agency
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2023 (and subsequent years in which the Successor Agency is in operation) are subject to review by various State agencies and the County in which the Successor Agency resides. If any expenses incurred by the Successor Agency are disallowed by the State agencies or County, the City, acting as the Successor Agency could be liable for the repayment of the disallowed costs from either its own funds or by the State withholding remittances normally paid to the City. The amount, if any, of expenses that may be disallowed by the State agencies or County cannot be determined at this time, although the Successor Agency expects such amounts, if any, to be immaterial.
NOTE 17 RESTATEMENT
Net Position and Fund Balances as of July 1, 2023 were restated as follows:
Other
Governmental Business-Type Harbor Tidelands Harbor Uplands Wastewater General Intergovernmental Activities Activities Enterprise Fund Enterprise Fund Enterprise Fund Fund Grants Net Position/Fund Balance - Beginning of Year, as
Previously Reported, July 1, 2023 $ 54,191,573 $ 82,449,722 $ 24,411,236 $ 23,056,218 $ 33,700,013 $ 33,188,418 $ (6,053,354) Increase(Decrease) in Net Position/Fund Balance for
Correction of an Error:
Capitalized Habor Dreading Expenditures - (490,188) (490,188) Construction in Progress Reported In Incorrect Opinion Unit (575,200) 575,200 575,200 Modified Approach for Infrastucture Reporting (5,428,943) Reimbursement of old grant expenditures 251,307 (251,307) Write-off of uncollectible developer receivable - Marine Ave. (1,246,492) (1,246,492) Proper accounting treatment for 3rd party managed leases Net Position/Fund Balance - Beginning of Year, as
As Restated, July 1, 2023 $ 46,940,938 $ 82,534,734 $ 23,921,048 $ 23,056,218 $ 34,275,213 $ 32,193,233 $ (6,304,661) A. Correction of an Error in Previously Issued Financial Statements During fiscal year 2024, the City determined that certain harbor dreading expenditures incurred as maintenance to restore navigation depth rather than improvement or enhancements were erroneously capitalized in prior periods. Therefore, the business-type activities and Harbor Tidelands Enterprise Fund’s capital assets were overstated by approximately $490,000 for the fiscal year ended June 30, 2023 and is presented as a correction of an error in the Habor Tidelands Statement of Revenues, Expenses and Changes in Net Position and in the Statement of Activities Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(97)
NOTE 17 RESTATEMENT (CONTINUED)
During the fiscal year ended June 30, 2024, the City identified a classification error in the financial statement presentation of capital improvement expenditures. Although $575,200 in expenditures were properly expensed in the correct fund, they were erroneously reported under the wrong opinion unit in the financial statements. As a result, Business-Type Activities and the Wastewater Enterprise Fund were understated, while Governmental Activities were overstated by the same amount as of June 30, 2023.
During the fiscal year ended June 30, 2024, the City of Redondo Beach conducted a comprehensive review of its capital asset reporting under the modified approach for infrastructure assets, specifically its Streets Pavement System. As part of this review, the City identified several infrastructure projects previously capitalized as construction in progress (CIP) that were determined to be preservation and maintenance activities under the criteria of the modified approach. In accordance with GASB Statement No. 34, infrastructure assets reported under the modified approach are not depreciated, and expenditures that preserve or maintain these assets should be expensed in the period incurred rather than capitalized. As a result, a prior period adjustment was recorded to remove capitalized costs from beginning balances of governmental activities. The cumulative effect of this adjustment resulted in a decrease to beginning net position of governmental activities as of July 1, 2023 by approximately $5.4 million. The adjustment did not impact total fund balances but corrected the classification of infrastructure-related expenditures to align with the City’s modified approach policy.
The City recorded a prior period adjustment to correct the classification of certain grant expenditures. The City conducted a comprehensive review of their other intergovernmental grants fund during the fiscal year ended 2024. The City identified approximately $251,000 in historical expenditures that had been recorded in the Grants fund but were not submitted for reimbursement during the active grant periods. As the associated grants have been closed out and no further reimbursement is expected, the City has reclassified these expenditures to the General Fund to reflect their proper financial reporting. The reclassification did not affect the total governmental fund balances but corrected the presentation of expenditures between the Grants Fund and General Fund.
During the fiscal year ended June 30, 2024, the City of Redondo Beach reviewed the financial activity associated with the Marine Avenue Hotel project, including the developerfunded reserve account held at Western Alliance Bank. As part of this review, the City identified a receivable balance of approximately $1.25 million recorded in prior years as a developer receivable. Upon further evaluation, it was determined that the developer drawdowns from the reserve account are unlikely to be repaid, and no formal repayment obligation exists under the terms of the agreement. Accordingly, the City recorded a prior period adjustment to eliminate the receivable and restate the beginning fund balance of the affected governmental fund. This adjustment reflects the City’s reassessment of the nature of the arrangement, which is now considered a non-recoverable guarantee payment rather than a reimbursable advance. The adjustment did not impact current year revenues or expenditures, but corrected the presentation of assets and fund balances to more accurately reflect the City’s financial position
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(98)
NOTE 17 RESTATEMENT (CONTINUED)
During fiscal year 2024, the City conducted a comprehensive review of its lease management practices related to the Concord lease arrangement. This review revealed that certain transactions, including cash deposits, receivable balances and tenant deposits that had not been properly recorded in prior periods.
Specifically, the City had not:
• Recognized a deposit receivable and deposit liability associated with Concord lease cash deposits.
• Reflected expenditures incurred by the third-party on behalf of the City and its financial records, resulting in an understatement of both expenditures and liabilities.
As a result, the City recorded a prior period adjustment to correct beginning fund balances and properly reflect the financial position of both the Tidelands and Uplands Enterprise funds. These corrections ensure compliance with applicable lease accounting standards and improve the accuracy of the City’s financial reporting.
Preliminary Draft
UPDATE THIS TOC AND USE IT AS REFERENCE TO UPDATE THE PAGE NUMBERS IN WP 0100.30
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 101
BUDGETARY COMPARISON INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 103
BUDGETARY COMPARISON SCHEDULE – OTHER
INTERGOVERNMENTAL GRANTS 104
BUDGETARY COMPARISON SCHEDULE – LOW-MOD INCOME HOUSING 105
PENSION INFORMATION
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER
PLAN 106
SCHEDULE OF PLAN CONTRIBUTIONS – MISCELLANEOUS PLAN –
AGENT MULTIPLE-EMPLOYER PLAN 108
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN 110 SCHEDULE OF PLAN CONTRIBUTIONS – SAFETY PLAN – AGENT
MULTIPLE-EMPLOYER PLAN 112
OPEB INFORMATION
SCHEDULE OF CHANGES IN OPEB LIABILITY AND RELATED RATIOS 114 SCHEDULE OF CONTRIBUTIONS 116
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS 118
SUPPLEMENTARY INFORMATION
COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 123
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 129
Preliminary Draft
UPDATE THIS TOC AND USE IT AS REFERENCE TO UPDATE THE PAGE NUMBERS IN WP 0100.30
BUDGETARY COMPARISON SCHEDULES – SPECIAL REVENUE FUNDS
STATE GAS TAX 135
PARKS AND RECREATION FACILITIES 136
NARCOTIC SEIZURE / FORFEITURE 137
PROPOSITION A 138
PROPOSITION C 139
MEASURE R 140
LOCAL TRANSPORTATION ARTICLE 3 141
AIR QUALITY IMPROVEMENT 142
STORM DRAIN IMPROVEMENT 143
STREET LANDSCAPING AND LIGHTING DISTRICT 144
COMMUNITY DEVELOPMENT BLOCK GRANT 145
DISASTER RECOVERY 146
HOUSING AUTHORITY 147
SUBDIVISION PARK TRUST 148
MEASURE M 149
MEASURE W 150
BUDGETARY COMPARISON SCHEDULES – CAPITAL PROJECT FUNDS
CAPITAL IMPROVEMENT PROJECTS 151
MAJOR FACILITIES RECONSTRUCTION 152
OPEN SPACE ACQUISITION 153
BUDGETARY COMPARISON SCHEDULES – DEBT SERVICE FUNDS
PUBLIC FINANCING AUTHORITY 154
Preliminary Draft
UPDATE THIS TOC AND USE IT AS REFERENCE TO UPDATE THE PAGE NUMBERS IN WP 0100.30
COMBINING STATEMENT OF NET POSITION – NONMAJOR ENTERPRISE FUNDS 155
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – NONMAJOR ENTERPRISE FUNDS 156
COMBINING STATEMENT OF CASH FLOWS – NONMAJOR 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 Preliminary Draft
(100)
REQUIRED SUPPLEMENTARY INFORMATION
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2024
(101)
NOTE 1 BUDGETARY INFORMATION
Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective uses of the City's economic resources, as well as establishing that the highest priority objectives are accomplished.
The Annual Budget serves from July 1 to June 30, and is a vehicle that openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning performance measures and controls that permit the evaluation and adjustment of the City's performance.
The City follows these procedures in establishing the budgetary data reflected in the basic financial statements:
1. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year.
2. The City Council's policy is to adopt an annual line-item budget for the general, special revenue, debt service, and capital projects funds.
3. Public hearings are conducted prior to its adoption by the Council.
4. Supplemental appropriations, when required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the City Manager.
5. Expenditures may not exceed appropriations at the departmental level, which is the legal level of control.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the general, special revenue, debt service, and capital projects funds. Unexpended and unencumbered appropriations of these governmental funds automatically lapse at the end of the fiscal year.
Encumbrances outstanding at year-end are reported with restricted, committed, assigned, and/or unassigned fund balances. They do not constitute expenditures or estimated liabilities. Budgets were legally adopted for all governmental funds with the exception of the Parking Authority Debt Service Fund, the Pier Parking Structure Rehabilitation Capital Projects Fund, and Major Facilities Reconstruction Capital Projects Fund.
The following are the budget comparison schedules for General Fund, Other Intergovernmental Grants Special Revenue Fund and Low-Mod Income Housing Special Revenue Fund.
Preliminary Draft
CITY OF REDONDO BEACH
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2024
(102)
NOTE 1 BUDGETARY INFORMATION (CONTINUED)
For the fiscal year ended June 30, 2024, the following departments have excess expenditures over appropriations:
Excess on
Expenditure
Over
Expenditures Appropriations Appropriations
General Fund:
Police $ 43,713,755 $ 42,922,143 $ 791,612
Financial Services 5,049,343 3,108,313 1,941,030
Low-Mod Income Housing:
Cultural and Leisure Services 279,000 - 279,000
Gas Tax:
Public Works 1,462,195 1,437,396 24,799
Street Landscaping and Lighting District
Public Works 2,548,429 2,527,908 20,521
Housing Authority:
Housing and Community
Development 9,015,825 7,702,744 1,313,081
Capital Improvement Projects
Public Works 149,654 145,556 4,098
Open Space Acquisition
General Government 3,937 - 3,937
Public Financing Authority
Housing and Community
Development 295,562 273,975 21,587
Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2024
(103)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year, As Restated $ 32,193,233 $ 32,193,233 $ 32,193,233 $ - Resources (Inflows):
Taxes 76,464,074 77,079,429 80,645,193 3,565,764
Interdepartmental 8,747,688 13,809,642 13,821,750 12,108 Licenses and Permits 2,372,809 2,412,453 2,386,229 (26,224) Intergovernmental 160,000 160,000 186,830 26,830
Charges for Services 9,362,827 8,705,866 10,078,596 1,372,730 Use of Money and Property 3,155,630 3,243,743 5,265,301 2,021,558 Fines and Forfeitures 1,446,200 1,312,392 1,230,559 (81,833) Miscellaneous 3,141,822 3,033,578 3,189,908 156,330
Transfers In - 1,770,345 1,653,179 (117,166)
Subscription Financing - - 619,252 619,252
Amounts Available for Appropriations 137,044,283 143,720,681 151,270,030 7,549,349 Charges to Appropriation (Outflow):
General Government:
Mayor and City Council 820,932 853,179 729,054 124,125
City Clerk 1,468,677 1,507,462 1,078,182 429,280
City Treasurer 385,677 413,782 320,400 93,382
City Attorney 4,509,030 4,388,105 3,962,674 425,431
City Manager 1,187,739 1,225,122 1,097,458 127,664
Human Resources 4,330,307 3,616,791 2,255,398 1,361,393 Financial Services 3,215,849 3,108,313 5,049,343 (1,941,030) Public Safety:
Police 45,680,915 42,922,143 43,713,755 (791,612)
Fire 19,787,553 19,416,662 18,897,115 519,547
Housing and Community Development:
Community Development 3,852,048 3,713,844 3,174,082 539,762 Waterfront and Economic Development 329,109 295,089 279,379 15,710 Cultural and Leisure Services:
Community Services 7,593,004 7,862,393 7,630,688 231,705 Library 4,676,050 4,493,998 4,388,799 105,199
Public Works 9,085,823 8,489,532 7,608,906 880,626
Capital Outlay 1,147,000 4,465,330 235,704 4,229,626
Debt Service:
Principal Retirement 773,014 - 593,041 (593,041)
Interest and Fiscal Charges - - 15,322 (15,322)
Transfers Out - 14,857,972 13,973,838 884,134
Total Charges to Appropriations 108,842,727 121,629,717 115,003,138 6,626,579 Budgetary Fund Balance - End of Year
Preliminary
$ 28,201,556 $ 22,090,964 $ 36,266,892 $ 14,175,928
Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
OTHER INTERGOVERNMENTAL GRANTS
YEAR ENDED JUNE 30, 2024
(104)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year, As Restated $ (6,304,661) $ (6,304,661) $ (6,304,661) $ - Resources (Inflows):
Intergovernmental 12,823,248 15,953,758 10,292,835 (5,660,923) Amounts Available for Appropriations 6,518,587 9,649,097 3,988,174 (5,660,923) Charges to Appropriation (Outflow):
General Government 40,588 1,547,701 754,748 792,953
Public Safety 278,380 913,650 391,521 522,129
Public Works 78,410 358,346 330,126 28,220
Capital Outlay 11,506,458 39,319,695 9,177,283 30,142,412 Debt Service:
Principal Retirement - - 58,989 (58,989)
Interest and Fiscal Charges - - 8,754 (8,754)
Total Charges to Appropriations 11,903,836 42,139,392 10,721,421 31,417,971 Budgetary Fund Balance - End of Year $ (5,385,249) $ (32,490,295) $ (6,733,247) $ (37,078,894) Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
LOW-MOD INCOME HOUSING
YEAR ENDED JUNE 30, 2024
(105)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 3,497,714 $ 3,497,714 $ 3,497,714 $ - Resources (Inflows):
Use of Money and Property - - 54,897 54,897
Charges to Appropriation (Outflow):
Housing and Community Development 150,000 261,826 40,159 221,667 Cultural and Leisure Services - - 279,000 (279,000)
Total Charges to Appropriations 150,000 261,826 319,159 (57,333) Budgetary Fund Balance - End of Year $ 3,347,714 $ 3,235,888 $ 3,233,452 $ 112,230 Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(106)
Fiscal Year 2024 2023 2022 2021 2020
Total Pension Liability:
Service Cost $ 3,441,839 $ 3,349,243 $ 3,267,559 $ 3,426,450 $ 3,397,192 Interest 16,219,473 15,836,385 15,785,975 15,398,568 14,990,021 Difference Between Expected and Actual Experience (707,830) (3,768,503) (1,273,036) (1,088,566) 4,185,447 Changes of Benefit Terms 339,225 - - - -
Changes of Assumptions - 6,057,682 - - -
Benefit Payments, Including Refunds of
Employee Contributions (13,567,007) (13,055,631) (12,251,572) (11,856,917) (11,341,781) Net Change in Total Pension Liability 5,725,700 8,419,176 5,528,926 5,879,535 11,230,879 Total Pension Liability - Beginning 240,496,017 232,076,841 226,547,915 220,668,380 209,437,501 Total Pension Liability - Ending (a) 246,221,717 240,496,017 232,076,841 226,547,915 220,668,380 Plan Fiduciary Net Position:
Contributions - Employer 2,014,388 70,759,414 6,313,617 5,895,816 5,141,337 Contributions - Employee 1,571,290 1,393,334 1,370,930 1,487,258 1,461,551 Plan to Plan Resource Movement (14,324) - - - -
Net Investment Income 13,829,787 (18,874,022) 36,083,015 7,811,724 9,905,031 Benefit Payments, Including Refunds of
Employee Contributions (13,567,007) (13,055,631) (12,251,572) (11,856,917) (11,341,781) Administrative Expense (170,814) (119,720) (160,659) (222,338) (108,939) Other Miscellaneous Income (Expense) - - - - 355
Net Change in Fiduciary Net Position 3,663,320 40,103,375 31,355,331 3,115,543 5,057,554 Plan Fiduciary Net Position - Beginning 232,288,394 192,185,019 160,829,688 157,714,145 152,656,591 Plan Fiduciary Net Position - Ending (b) 235,951,714 232,288,394 192,185,019 160,829,688 157,714,145 Plan Net Pension Liability (Assets) -
Ending (a) - (b) $ 10,270,003 $ 8,207,623 $ 39,891,822 $ 65,718,227 $ 62,954,235 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 95.83% 96.59% 82.81% 70.99% 71.47% Covered Payroll $ 20,726,906 $ 18,792,136 $ 19,503,029 $ 20,914,206 $ 21,343,149 Plan Net Pension Liability (Asset) as a Percentage
of Covered Payroll 49.55% 43.68% 204.54% 314.23% 294.96% Notes to Schedule:
Benefit Changes:
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
Changes of Assumptions:
There were no assumption changes for measurement date 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED) MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(107)
Fiscal Year
Total Pension Liability:
Service Cost
Interest
Difference Between Expected and Actual Experience
Changes of Benefit Terms
Changes of Assumptions
Benefit Payments, Including Refunds of
Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position:
Contributions - Employer
Contributions - Employee
Plan to Plan Resource Movement
Net Investment Income
Benefit Payments, Including Refunds of
Employee Contributions
Administrative Expense
Other Miscellaneous Income (Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability (Assets) -
Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Covered Payroll
Plan Net Pension Liability (Asset) as a Percentage
of Covered Payroll
2019 2018 2017 2016 2015
$ 3,370,814 $ 3,296,064 $ 2,658,781 $ 2,537,587 $ 2,874,216 14,225,068 13,844,417 13,391,115 12,947,817 12,419,054
(291,950) 808,043 (717,631) (58,913) -
- - - - -
(1,050,285) 11,132,579 - (3,072,251) -
(10,849,928) (10,173,782) (9,282,593) (8,784,656) (7,872,679) 5,403,719 18,907,321 6,049,672 3,569,584 7,420,591
204,033,782 185,126,461 179,076,789 175,507,205 168,086,614 209,437,501 204,033,782 185,126,461 179,076,789 175,507,205 4,408,505 4,018,170 3,517,596 2,783,258 2,678,754
1,456,828 1,404,270 1,361,650 1,282,878 1,301,991
(355) - (2,463) 2,745 -
12,226,183 14,967,632 777,656 3,161,165 21,314,935
(10,849,928) (10,173,782) (9,282,593) (8,784,656) (7,872,679) (227,625) (200,883) (85,184) (158,175) -
(432,265) - - - -
6,581,343 10,015,407 (3,713,338) (1,712,785) 17,423,001 146,075,248 136,059,841 139,773,179 141,485,964 124,062,963 152,656,591 146,075,248 136,059,841 139,773,179 141,485,964 $ 56,780,910 $ 57,958,534 $ 49,066,620 $ 39,303,610 $ 34,021,241
72.89% 71.59% 73.50% 78.05% 80.62%
$ 20,156,748 $ 19,613,902 $ 19,222,807 $ 17,124,613 $ 17,538,911 281.70% 295.50% 255.25% 229.52% 193.98%
Notes to Schedule:
Benefit Changes:
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
Changes of Assumptions:
There were no assumption changes for measurement date 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF PLAN CONTRIBUTIONS
MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(108)
Fiscal Year 2024 2023 2022 2021 2020
Actuarially Determined Contribution $ 2,347,150 $ 1,995,492 $ 6,865,116 $ 6,314,575 $ 5,895,512 Contribution in Relation to the Actuarially
Determined Contributions (2,347,150) (1,995,492) (70,759,414) (6,314,575) (5,895,512) Contribution Deficiency (Excess) $ - $ - $ (63,894,298) $ - $ - Covered Payroll $ 21,519,482 $ 20,726,906 $ 18,792,136 $ 19,503,029 $ 20,914,206 Contributions as a Percentage
of Covered Payroll 10.91% 9.63% 376.54% 32.38% 28.19%
Notes to Schedule - 2024:
Valuation Date: June 30, 2021
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level percentage of payroll, closed Assets Valuation Method Fair Value of Assets
Discount Rate 6.90% (net of investments and administrative expenses, includes inflation)
Projected Salary Increases Varies by Entry Age and Service Inflation 2.50%
Payroll Growth 2.75%
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF PLAN CONTRIBUTIONS (CONTINUED)
MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(109)
Fiscal Year
Actuarially Determined Contribution
Contribution in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage
of Covered Payroll
2019 2018 2017 2016 2015
$ 5,140,690 $ 4,399,141 $ 4,018,056 $ 3,517,053 $ 2,783,258 (5,140,690) (4,399,141) (4,018,056) (3,517,053) (2,783,258) $ - $ - $ - $ - $ -
$ 21,343,149 $ 20,156,748 $ 19,613,902 $ 19,222,807 $ 17,124,613
24.09% 21.82% 20.49% 18.30% 16.25%
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(110)
Fiscal Year 2024 2023 2022 2021 2020
Total Pension Liability:
Service Cost $ 6,407,011 $ 6,249,142 $ 5,458,828 $ 5,883,763 $ 5,753,947 Interest 28,719,706 27,763,771 27,413,478 26,796,647 25,990,861 Difference Between Expected and Actual Experience 4,346,921 (1,796,249) (1,214,915) 968,299 9,616,039 Changes of Benefit Terms 168,350 - - - -
Changes of Assumptions - 11,089,291 - - -
Benefit Payments, Including Refunds of
Employee Contributions (25,555,133) (23,950,891) (23,233,659) (22,018,409) (20,998,140) Net Change in Total Pension Liability 14,086,855 19,355,064 8,423,732 11,630,300 20,362,707 Total Pension Liability - Beginning 421,286,399 401,931,335 393,507,603 381,877,303 361,514,596 Total Pension Liability - Ending (a) 435,373,254 421,286,399 401,931,335 393,507,603 381,877,303 Plan Fiduciary Net Position:
Contributions - Employer 4,682,522 155,865,005 12,912,307 11,860,288 10,499,397 Contributions - Employee 2,209,903 1,976,975 1,789,951 1,816,584 1,753,382 Plan to Plan Resource Movement 14,324 - - - -
Net Investment Income 23,582,718 (32,498,996) 56,472,719 12,249,408 15,582,752 Benefit Payments, Including Refunds of
Employee Contributions (25,555,133) (23,950,891) (23,233,659) (22,018,409) (20,998,140) Administrative Expense (293,183) (185,318) (249,533) (347,134) (170,963) Other Miscellaneous Income (Expense) - - - - 559
Net Change in Fiduciary Net Position 4,641,151 101,206,775 47,691,785 3,560,737 6,666,987 Plan Fiduciary Net Position - Beginning 398,696,709 297,489,934 249,798,149 246,237,412 239,570,425 Plan Fiduciary Net Position - Ending (b) 403,337,860 398,696,709 297,489,934 249,798,149 246,237,412 Plan Net Pension Liability (Assets) -
Ending (a) - (b) $ 32,035,394 $ 22,589,690 $ 104,441,401 $ 143,709,454 $ 135,639,891 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 92.64% 94.64% 74.02% 63.48% 64.48% Covered Payroll $ 16,696,199 $ 15,212,797 $ 18,079,966 $ 18,508,977 $ 18,388,027 Plan Net Pension Liability (Asset) as a Percentage
Notes to Schedule:
Benefit Changes:
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
Changes of Assumptions:
There were no assumption changes for measurement date 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS (CONTINUED) SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(111)
Fiscal Year
Total Pension Liability:
Service Cost
Interest
Difference Between Expected and Actual Experience
Changes of Benefit Terms
Changes of Assumptions
Benefit Payments, Including Refunds of
Employee Contributions
Net Change in Total Pension Liability
Total Pension Liability - Beginning
Total Pension Liability - Ending (a)
Plan Fiduciary Net Position:
Contributions - Employer
Contributions - Employee
Plan to Plan Resource Movement
Net Investment Income
Benefit Payments, Including Refunds of
Employee Contributions
Administrative Expense
Other Miscellaneous Income (Expense)
Net Change in Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan Net Pension Liability (Assets) -
Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability
Covered Payroll
Plan Net Pension Liability (Asset) as a Percentage
of Covered Payroll
2019 2018 2017 2016 2015
$ 5,468,356 $ 5,065,945 $ 4,352,710 $ 4,369,526 $ 4,500,890 24,611,566 23,940,703 23,438,824 22,764,197 21,930,219
817,752 (493,558) (769,075) 854,509 -
- - - - -
(1,235,646) 19,087,843 - (5,276,514) -
(20,097,705) (18,716,805) (17,877,775) (17,197,393) (16,352,903) 9,564,323 28,884,128 9,144,684 5,514,325 10,078,206
351,950,273 323,066,145 313,921,461 308,407,136 298,328,930 361,514,596 351,950,273 323,066,145 313,921,461 308,407,136 9,310,708 8,431,955 7,448,334 6,493,477 5,790,913
1,887,216 1,592,490 1,457,236 1,397,695 2,003,854
(559) - 2,463 (2,745) -
19,399,983 23,744,382 1,150,020 5,030,896 34,672,500
(20,097,705) (18,716,805) (17,877,775) (17,197,393) (16,352,903) (358,575) (317,989) (136,109) (251,346) -
(680,940) - - - -
9,460,128 14,734,033 (7,955,831) (4,529,416) 26,114,364 230,110,297 215,376,264 223,332,095 227,861,511 201,747,147 239,570,425 230,110,297 215,376,264 223,332,095 227,861,511 $ 121,944,171 $ 121,839,976 $ 107,689,881 $ 90,589,366 $ 80,545,625
66.27% 65.38% 66.67% 71.14% 73.88%
$ 17,552,942 $ 16,424,748 $ 15,770,385 $ 15,122,058 $ 14,418,451 694.72% 741.81% 682.86% 599.05% 558.63%
Notes to Schedule:
Benefit Changes:
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. The impact, if any, is included in the changes of benefit terms.
Changes of Assumptions:
There were no assumption changes for measurement date 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term.
The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF PLAN CONTRIBUTIONS
SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(112)
Fiscal Year 2024 2023 2022 2021 2020
Actuarially Determined Contribution $ 4,979,714 $ 4,682,522 $ 14,283,371 $ 12,915,506 $ 11,860,372 Contribution in Relation to the Actuarially
Determined Contributions (4,979,714) (4,682,522) (155,865,005) (12,915,506) (11,860,372) Contribution Deficiency (Excess) $ - $ - $ (141,581,634) $ - $ - Covered Payroll $ 18,160,046 $ 16,696,199 $ 15,212,797 $ 18,079,966 $ 18,508,977 Contributions as a Percentage
of Covered Payroll 27.42% 28.05% 1024.57% 71.44% 64.08% Notes to Schedule- 2024:
Valuation Date: June 30, 2021
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization Method Level percentage of payroll, closed Assets Valuation Method Fair Value of Assets
Discount Rate 6.90% (net of investments and administrative expenses) Projected Salary Increases Varies by Entry Age and Service Inflation 2.50%
Payroll Growth 2.75%
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF PLAN CONTRIBUTIONS (CONTINUED)
SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(113)
Fiscal Year
Actuarially Determined Contribution
Contribution in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage
of Covered Payroll
2019 2018 2017 2016 2015
$ 10,498,710 $ 9,310,585 $ 8,431,955 $ 7,448,335 $ 6,493,477 (10,498,710) (9,310,585) (8,431,955) (7,448,335) (6,493,477) $ - $ - $ - $ - $ -
$ 18,388,027 $ 17,552,942 $ 16,424,748 $ 15,770,385 $ 15,122,058
57.10% 53.04% 51.34% 47.23% 42.94%
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(114)
Fiscal Year 2024 2023 2022 2021
Total OPEB Liability:
Service Cost $ 752,978 $ 732,825 $ 869,592 $ 854,481
Interest on the Total OPEB Liability 1,382,435 1,351,025 1,620,655 1,592,234 Difference Between Expected and Actual
Experience 545,675 - (3,732,173) -
Changes in Assumptions 575,958 - 700,641 (359,831)
Changes in Benefit Terms - - -
Benefit Payments (1,513,984) (1,688,875) (1,741,685) (1,620,198) Net Change in Total OPEB Liability 1,743,062 394,975 (2,282,970) 466,686 Total OPEB Liability - Beginning 22,122,970 21,727,995 24,010,965 23,544,279 Total OPEB Liability - Ending (a) 23,866,032 22,122,970 21,727,995 24,010,965 Plan Fiduciary Net Position:
Contributions - Employer 1,822,393 2,024,400 1,975,728 2,214,831 Net Investment Income 765,828 (1,612,311) 2,465,620 300,557 Benefit Payments (1,513,984) (1,688,875) (1,741,685) (1,620,198) Administrative Expense (9,436) (7,783) (8,390) (9,132)
Net Change in Plan Fiduciary Net Position 1,064,801 (1,284,569) 2,691,273 886,058 Plan Fiduciary Net Position - Beginning 9,133,983 10,418,552 7,727,279 6,841,221 Plan Fiduciary Net Position - Ending (b) 10,198,784 9,133,983 10,418,552 7,727,279 Plan OPEB Liability (Assets) - Ending (a) - (b) $ 13,667,248 $ 12,988,987 $ 11,309,443 $ 16,283,686 Plan Fiduciary Net Position as a Percentage of the 42.73% 41.29% 47.95% 32.18% Total OPEB Liability
Covered Payroll $ 40,375,037 $ 37,783,818 $ 37,142,464 $ 38,202,693 Plan OPEB Liability (Asset) as a Percentage
of Covered Payroll 33.85% 34.38% 30.45% 42.62%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years’ information will be displayed up to ten years as information becomes available.
Notes to Schedule: None
Changes of Assumptions:
Updated medical trend assumptions were made for measurement date June 30, 2023. The discount rate was updated based on newer capital market assumptions as of measurement date June 30, 2022. ACA excise tax was removed as of measurement date June 30, 2020. The discount rate was changed from 6.75 percent to 6.25 percent for the measurement period ended June 30, 2022.
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS (CONTINUED) AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(115)
Fiscal Year
Total OPEB Liability:
Service Cost
Interest on the Total OPEB Liability
Difference Between Expected and Actual
Experience
Changes in Assumptions
Changes in Benefit Terms
Benefit Payments
Net Change in Total OPEB Liability
Total OPEB Liability - Beginning
Total OPEB Liability - Ending (a)
Plan Fiduciary Net Position:
Contributions - Employer
Net Investment Income
Benefit Payments
Administrative Expense
Net Change in Plan Fiduciary Net Position
Plan Fiduciary Net Position - Beginning
Plan Fiduciary Net Position - Ending (b)
Plan OPEB Liability (Assets) - Ending (a) - (b)
Plan Fiduciary Net Position as a Percentage of the
Total OPEB Liability
Covered Payroll
Plan OPEB Liability (Asset) as a Percentage
of Covered Payroll
2020 2019 2018
$ 911,766 $ 885,210 $ 560,000
1,635,748 1,581,920 1,521,000
(147,110) - (3,502,000)
(1,415,841) - 2,900,000
- - 2,593,000
(1,523,667) (1,868,747) (2,002,000)
(539,104) 598,383 2,070,000
24,083,383 23,485,000 21,415,000
23,544,279 24,083,383 23,485,000
2,217,998 2,191,008 1,428,000
497,289 469,710 632,000
(1,523,667) (1,868,747) (2,002,000)
(5,691) (9,679) (3,000)
1,185,929 782,292 55,000
5,655,292 4,873,000 4,818,000
6,841,221 5,655,292 4,873,000
$ 16,703,058 $ 18,428,091 $ 18,612,000
29.06% 23.48% 20.75%
$ 38,823,317 $ 36,708,000 $ 35,816,000
43.02% 50.20% 51.97%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years’ information will be displayed up to ten years as information becomes available.
Notes to Schedule: None
Changes of Assumptions:
Updated medical trend assumptions were made for measurement date June 30, 2023. The discount rate was updated based on newer capital market assumptions as of measurement date June 30, 2022. ACA excise tax was removed as of measurement date June 30, 2020. The discount rate was changed from 6.75 percent to 6.25 percent for the measurement period ended June 30, 2022.
Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(116)
Fiscal Year 2024 2023 2022 2021
Actuarially Determined Contribution $ 1,970,280 $ 1,822,393 $ 2,024,144 $ 1,975,728 Contribution in Relation to the Actuarially
Determined Contributions (1,970,280) (1,822,393) (2,024,144) (1,975,728) Contribution Deficiency (Excess) $ - $ - $ - $ -
Covered Payroll $ 43,856,027 $ 40,375,037 $ 37,783,818 $ 37,142,464 Contributions as a Percentage of Covered Payroll 4.49% 4.51% 5.36% 5.32% (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years’ information will be displayed up to ten years as information becomes available.
Methods and Assumptions Used to Determine 2024 Contribution Rates:
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Normal
Amortization Valuation Method Level percent of payroll
Amortization Valuation Period 15-year average remaining fixed period for 2023/24 Assets Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.25%
Inflation 2.50%
Mortality CalPERS 2000-2019 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2021 Preliminary Draft
CITY OF REDONDO BEACH
SCHEDULE OF CONTRIBUTIONS (CONTINUED)
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(117)
Fiscal Year
Actuarially Determined Contribution
Contribution in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess)
Covered Payroll
Contributions as a Percentage of Covered Payroll
2020 2019 2018
$ 2,214,831 $ 2,217,998 $ 1,802,000
(2,214,831) (2,217,998) (705,000)
$ - $ - $ 1,097,000
$ 32,202,693 $ 38,823,317 $ 36,708,000
6.88% 5.71% 1.92%
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years’ information will be displayed up to ten years as information becomes available.
Preliminary Draft
CITY OF REDONDO BEACH
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2024
(118)
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. GASB Statement No. 34 defines infrastructure assets as "long-lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets..." Major infrastructure systems include the street system, storm water system, sewer system, and traffic control system. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, etc. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.
The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements:
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 results using a measurement scale; and (3) estimated annual amounts budgeted to maintain and preserve an established condition assessment level.
The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level.
The City commissioned a physical assessment of the street conditions as of June 30, 2020. The study assisted the City by providing inspection data used to evaluate pavement condition. This helped to establish a City-defined target level of pavement performance, while optimizing the expenditure of limited fiscal resources. The entire pavement network within the City is composed of approximately 125 centerline miles of paved surfaces. The City's street system can be grouped by function class as follows: 22 centerline miles of arterial, 5 centerline miles of collector, and 98 centerline miles of residential.
In May 2020, a physical assessment of all pavement segments was conducted to assess the existing surface condition of each of the individual pavement segments based on the ASTEM D6433-11 standards for Pavement Condition Index (PCI). The PCI method only looks at distresses in the pavement since all of the City streets are structurally adequate and have speed limits less than 45 mph.
Evaluating the pavement based on PCI is a widely used standard in the United States, internationally, and commonly used by adjacent cities. This change allows the City to easily compare street conditions with comparable adjacent cities.
Upon completion of the study, the PCI was calculated for each segment in the City's pavement network to reflect the overall pavement condition. Ratings range from 0 to 100. A newly constructed street will have a PCI of 100, while a failed street will have a PCI of 25 or less. The pavement condition is primarily affected by the climate, traffic loads and volumes, construction materials and age. During the year, the comprehensive survey is updated to reflect the pavement's current condition.
Preliminary Draft
CITY OF REDONDO BEACH
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2024
(119)
The following conditions were defined:
Condition Rating
Very Good 70-100
Good 50-69
Poor 25-49
Very Poor 0-24
In line with the Capital Improvement Program and as presented to City Council on January 16, 2018, City policy is to achieve a citywide average rating of 75 PCI, by fiscal year 2027/2028. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at posted speeds.
The condition assessments for the most recent years since implementation are as follows:
Year PQI Rate Condition % of Streets
2021 70 PCI Very Good
Good
Poor
Very Poor
52%
34%
13%
1%
2022 69 PCI Very Good
Good
Poor
Very Poor
49%
34%
16%
1%
2023 68 PCI Very Good
Good
Poor
Very Poor
49%
35%
16%
0%
2024 68 PCI Very Good
Good
Poor
Very Poor
49%
35%
16%
0%
The City expended $10,751,702 on street improvement projects for the fiscal year ended June 30, 2024. These capital improvements expenditures enhanced the condition of many streets and delayed deterioration on others. The estimated expenditures required to maintain and improve the overall condition of the streets from July 1,
Preliminary
2024 through June 30, 2025 is a minimum of $X,XXX,000.
Draft
CITY OF REDONDO BEACH
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2024
(120)
A schedule of budget versus actual for the most recent years since implementation, which preserved City streets at the current 68 PCI rating, is presented in the following:
Funded by
Capital
Improvement Funded by Total
Fiscal Year Final Budget Project Fund Other Funds Expenditures 2015-2016 $ 18,316,725 $ 349,942 $ 2,225,322 $ 2,575,264 2016-2017 18,181,254 426,308 2,176,521 2,602,829
2017-2018 25,410,860 2,277,323 3,029,105 5,306,428
2018-2019 28,101,756 858,836 1,567,341 2,426,177
2019-2020 25,722,992 983,290 5,101,794 6,085,084
2020-2021 25,883,121 1,303,631 3,707,000 5,010,631
2021-2022 35,923,606 1,329,143 2,556,402 3,885,545
2022-2023 40,322,463 2,107,750 12,428,564 14,536,314
2023-2024 41,159,539 1,720,311 9,031,391 10,751,702
Preliminary Draft
CITY OF REDONDO BEACH
MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2024
(121)
As of June 30, 2023, 50% of City streets were rated below the targeted average condition level of 75 PCI. However, as noted above, the City is investing in these infrastructure assets as part of the fiveyear Capital Improvement Program and will continue to rehabilitate and maintain its streets in order to achieve this goal.
General Fund Other Fund Total
Project Project # Budget Expenditures Expenditures Expenditures Residential Street Rehabilitation 40190 $ 2,999,885 $ 141,530 $ 223,378 $ 364,908 Citywide Curb Ramp Improvements 40399 385,504 - 148,283 148,283 Traffic Calming Project 40470 1,145,190 81,079 62,425 143,504 Bicycle Trans Plan Implementation 40510 772,469 - 36,619 36,619 Artesia/Aviation NB Rt Turn Lane 40780 1,795,175 - 261,989 261,989 PCH Study Recommendations 40800 2,037,111 - - -
Kingsdale Resurfacing- 182nd/Grant Ave 40880 1,921,047 - 60,747 60,747 Bike Plan Grant - Beryl St. Bike Lanes 40940 136,829 - - - Bike Plan Grant - N Catalina Bikelane 40941 414,370 - - - Bike Plan Grant - S Catalina/I Bikelane 40942 44,640 - - - Bike Plan Grant - Lilienthal Bikelane 40943 282,525 - - - Bike Plan Grant - Torrance Blvd Bike Lane 40944 215,790 - - - Bike Plan Grant - Citywide Bike Facilities 40945 853,340 - - - Inglewood at MBB Rt Turn Lane Feasibility 40960 2,736,911 - 153,945 153,945 Torrance Blvd & Francisca Traffic Signal Mod 41070 4,272 - 1,797 1,797 Artesia Blvd Improvements - Phase 1 41080 169,943 10,085 - 10,085 Grant Ave Signal Improvements 41090 970,076 262,471 216,441 478,912 Median Reno - PV Blvd/Prospect/MBB 41110 209,825 - - -
Beryl Resurfacing & Drainage - Prospect to Flag 41130 1,685 - 214 214 Citywide Slurry Seal Program 41140 1,608,962 385,601 339,520 725,121 Kingsdale Avenue Widening 41150 1,010,560 - 214,063 214,063 Manhattan Beach Boulevard Resurfacing 41160 4,333,451 - 970,363 970,363 Citywide Striping 41180 662,855 - 159,561 159,561
Artesia Blvd Resurfacing - Harper to Hawthorne 41190 360,000 - - - Citywide Traffic Signal Upgrades 41200 296,239 - 87,224 87,224 Torrance Blvd Resurfacing - PCH to Prospect 41230 2,278,962 - 1,933,288 1,933,288 Anita/Herondo & PCH WB RT Turn Lane 41240 2,500,000 - 176,328 176,328 NRB Bikeway Ext - Felton to Inglewood 41250 1,000,000 - 723 723 NRB Bikeway Ext - Inglewood Design 41260 1,735,000 - 1,492,155 1,492,155 Sidewalk Improvements & Repairs 41270 443,599 346,441 - 346,441 Traffic Signal Comm & Network System 41280 4,628,641 - 2,408,911 2,408,911 Dow/Vail/Johnston Bicylce Implementaiton Plan 41290 143,500 - - - Residential Street Reconstruction-Deferred Maintenance 41300 750,000 - - - Riviera Village Sidewalk Pavers 41310 535,680 26,592 - 26,592 Artesia Intesection Safety Implementation 41330 380,825 - 83,417 83,417 Grant Ave Bulb-outs 41340 375,000 375,000 - 375,000
Grant Ave Flash Crosswalks 41350 75,000 75,000 - 75,000 Alleyway Resurfacing with PCI<25 41370 565,000 - - -
Avenue I Resurfacing 41380 68,206 16,512 - 16,512
Pave Emerald Between Juanita to Lucia 41410 311,472 - - - Total
Preliminary
$ 41,159,539 $ 1,720,311 $ 9,031,391 $ 10,751,702
Draft
(122)
SUPPLEMENTARY INFORMATION
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(123)
Special Revenue Funds
Parks and Narcotic
Recreation Seizure /
State Gas Tax Facilities Forfeiture Proposition A
ASSETS
Pooled Cash and Investments $ 4,339,967 $ 126,843 $ 88,889 $ 2,395,331 Receivables:
Accounts 2,608 - - -
Taxes 163,847 - - -
Accrued Interest 20,289 - 646 18,082
Notes and Loans - - - -
Leases - - - -
Due from Other Governments 315,909 - 22,222 -
Due from Other Funds - - - -
Restricted Assets:
Cash and Investments with Fiscal Agents - - - -
Total Assets $ 4,842,620 $ 126,843 $ 111,757 $ 2,413,413
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable $ 499,548 $ - $ 13,229 $ -
Due to Other Funds - - - -
Total Liabilities 499,548 - 13,229 -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - - -
Deferred Leases Related Items - - - -
Total Deferred Inflows of Resources - - - -
FUND BALANCES
Restricted for:
Housing and Community Development - 126,843 - 2,413,413 Public Safety - - 98,528 -
Public Works 4,343,072 - - -
Debt Service - - - -
Low and Moderate Income Housing - - - -
Assigned to:
Capital Projects - - - -
Unassigned - - - -
Total Fund Balances 4,343,072 126,843 98,528 2,413,413
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 4,842,620 $ 126,843 $ 111,757 $ 2,413,413 Preliminary Draft
CITY OF REDONDO BEACH
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(124)
ASSETS
Pooled Cash and Investments
Receivables:
Accounts
Taxes
Accrued Interest
Notes and Loans
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
Special Revenue Funds
Local
Transportation Air Quality
Proposition C Measure R Article 3 Improvement
$ 4,109,221 $ 2,346,190 $ - $ 316,587
- - - -
- - - -
22,219 2,704 - 1,495
- - - -
- - - -
- - - -
- - - -
- - - -
$ 4,131,440 $ 2,348,894 $ - $ 318,082
$ 360,703 $ 89,149 $ - $ 912
- - 73,332 -
360,703 89,149 73,332 912
- - - -
- - - -
- - - -
3,770,737 2,259,745 - 317,170
- - - -
- - - -
- - - -
- - - -
- - - -
- - (73,332) -
3,770,737 2,259,745 (73,332) 317,170
$ 4,131,440 $ 2,348,894 $ - $ 318,082
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(125)
ASSETS
Pooled Cash and Investments
Receivables:
Accounts
Taxes
Accrued Interest
Notes and Loans
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
Special Revenue Funds
Street
Landscaping Community
Storm Drain and Lighting Development Disaster
Improvement District Block Grant Recovery
$ 269,070 $ 206,250 $ 16,848 $ 324,605
- - - -
- 26,048 - -
- - - -
- - 311,227 -
- - - -
- - 23,559 -
- - - -
- - - -
$ 269,070 $ 232,298 $ 351,634 $ 324,605
$ - $ 232,298 $ 37,301 $ -
- - 25,528 -
- 232,298 62,829 -
- - 311,230 -
- - - -
- - 311,230 -
- - - -
- - - 324,605
269,070 - - -
- - - -
- - - -
- - - -
- - (22,425) -
269,070 - (22,425) 324,605
$ 269,070 $ 232,298 $ 351,634 $ 324,605
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(126)
ASSETS
Pooled Cash and Investments
Receivables:
Accounts
Taxes
Accrued Interest
Notes and Loans
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
Special Revenue Funds
Housing Subdivision
Authority Park Trust Measure M Measure W
$ 2,966,743 $ 3,695,241 $ 2,818,424 $ 731,754
- 150 - -
- - - -
- - 13,379 3,625
- - - -
- - - -
- - - -
- - - -
- - - -
$ 2,966,743 $ 3,695,391 $ 2,831,803 $ 735,379
$ - $ 387,563 $ 251,630 $ 116,963
1,726,139 - - -
1,726,139 387,563 251,630 116,963
- - - -
- - - -
- - - -
- 3,307,828 - -
- - - -
- - 2,580,173 618,416
- - - -
1,240,604 - - -
- - - -
- - - -
1,240,604 3,307,828 2,580,173 618,416
$ 2,966,743 $ 3,695,391 $ 2,831,803 $ 735,379
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(127)
ASSETS
Pooled Cash and Investments
Receivables:
Accounts
Taxes
Accrued Interest
Notes and Loans
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
Capital Projects Funds
Capital Pier Parking Major
Improvement Structure Facilities Open Space
Projects Rehabilitation Reconstruction Acquisition
$ 4,909,739 $ 831 $ 365,565 $ 1,225,751
117,643 - - -
- - - -
- - - -
- - - -
- - - -
- - - -
4,677,893 - - -
- - - -
$ 9,705,275 $ 831 $ 365,565 $ 1,225,751
$ 161,890 $ - $ 16,588 $ -
- - - -
161,890 - 16,588 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
9,543,385 831 348,977 1,225,751
- - - -
9,543,385 831 348,977 1,225,751
$ 9,705,275 $ 831 $ 365,565 $ 1,225,751
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
(128)
ASSETS
Pooled Cash and Investments
Receivables:
Accounts
Taxes
Accrued Interest
Notes and Loans
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
Debt Service Funds
Public Total Other
Financing Parking Governmental
Authority Authority Funds
$ 4,580,152 $ 6,442 $ 35,840,443
5,362 - 125,763
- - 189,895
2,117 61 84,617
- - 311,227
1,027,142 - 1,027,142
5,374,988 - 5,736,678
544,986 - 5,222,879
55,246 - 55,246
$ 11,589,993 $ 6,503 $ 48,593,890
$ 22,385 $ - $ 2,190,159
4,962,371 - 6,787,370
4,984,756 - 8,977,529
- - 311,230
1,003,403 - 1,003,403
1,003,403 - 1,314,633
- - 12,195,736
- - 423,133
- - 7,810,731
5,601,834 6,503 5,608,337
- - 1,240,604
- - 11,118,944
- - (95,757)
5,601,834 6,503 38,301,728
$ 11,589,993 $ 6,503 $ 48,593,890
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(129)
Special Revenue Funds
Parks and Narcotic
Recreation Seizure /
State Gas Tax Facilities Forfeiture Proposition A
REVENUES
Taxes $ - $ - $ - $ -
Intergovernmental 3,709,045 - - 1,828,888
Charges for Services - 27,200 - -
Use of Money and Property 95,619 - 15,463 83,568
Fines and Forfeitures - - 72,107 -
Miscellaneous 17,825 - - -
Total Revenues 3,822,489 27,200 87,570 1,912,456
EXPENDITURES
Current:
General Government - - - -
Public Safety - - 147,004 -
Housing and Community Development - - - -
Cultural and Leisure Services - - - -
Public Works 1,462,195 - - -
Capital Outlay 744,356 - - -
Debt Service:
Principal Retirement - - 23,144 -
Interest and Fiscal Charges - - 2,211 -
Total Expenditures 2,206,551 - 172,359 -
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,615,938 27,200 (84,789) 1,912,456
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - (2,140,580)
Subscription Financing - - - -
Total Other Financing Sources (Uses) - - - (2,140,580)
NET CHANGE IN FUND BALANCES 1,615,938 27,200 (84,789) (228,124) Fund Balances (Deficit) - Beginning of Year 2,727,134 99,643 183,317 2,641,537 FUND BALANCES (Deficit) - END OF YEAR
Preliminary
$ 4,343,072 $ 126,843 $ 98,528 $ 2,413,413
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(130)
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
Cultural 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 (Deficit) - Beginning of Year
FUND BALANCES (Deficit) - END OF YEAR
Special Revenue Funds
Local
Transportation Air Quality
Proposition C Measure R Article 3 Improvement
$ - $ - $ - $ -
1,517,020 1,137,409 - 74,129
- - - -
159,870 64,920 - 9,625
- - - -
- - - -
1,676,890 1,202,329 - 83,754
- - - -
- - - -
- - - 48,071
- - - -
- - - -
1,634,624 737,104 72,425 -
- - - -
- - - -
1,634,624 737,104 72,425 48,071
42,266 465,225 (72,425) 35,683
- - - -
- - - -
- - - -
- - - -
42,266 465,225 (72,425) 35,683
3,728,471 1,794,520 (907) 281,487
Preliminary
$ 3,770,737 $ 2,259,745 $ (73,332) $ 317,170
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(131)
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
Cultural 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 (Deficit) - Beginning of Year
FUND BALANCES (Deficit) - END OF YEAR
Special Revenue Funds
Street
Landscaping Community
Storm Drain and Lighting Development Disaster
Improvement District Block Grant Recovery
$ - $ - $ - $ -
- - 358,820 -
34,655 1,503,280 27,000 10
- - - -
- - - -
- 3,000 - 19,788
34,655 1,506,280 385,820 19,798
- - - -
- - - 7,511
- - 106,014 -
- - - -
- 2,548,429 - -
- - 275,178 -
- - - -
- - - -
- 2,548,429 381,192 7,511
34,655 (1,042,149) 4,628 12,287
- 928,829 - -
- - - -
- - - -
- 928,829 - -
34,655 (113,320) 4,628 12,287
234,415 113,320 (27,053) 312,318
Preliminary
$ 269,070 $ - $ (22,425) $ 324,605
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(132)
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
Cultural 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 (Deficit) - Beginning of Year
FUND BALANCES (Deficit) - END OF YEAR
Special Revenue Funds
Housing Subdivision
Authority Park Trust Measure M Measure W
$ - $ - $ - $ -
8,822,762 - 1,284,377 715,856
- - - -
76,866 - 92,047 27,079
- - - -
- 700,150 - -
8,899,628 700,150 1,376,424 742,935
- - - -
- - - -
9,015,825 - - -
- - - -
- - - 209,105
- 1,139,884 905,902 751,017
- - - -
- - - -
9,015,825 1,139,884 905,902 960,122
(116,197) (439,734) 470,522 (217,187)
- - - -
- - - -
- - - -
- - - -
(116,197) (439,734) 470,522 (217,187)
1,356,801 3,747,562 2,109,651 835,603
Preliminary
$ 1,240,604 $ 3,307,828 $ 2,580,173 $ 618,416
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(133)
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
Cultural 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 (Deficit) - Beginning of Year
FUND BALANCES (Deficit) - END OF YEAR
Capital Projects Funds
Capital Pier Parking Major
Improvement Structure Facilities Open Space
Projects Rehabilitation Reconstruction Acquisition
$ 143,274 $ - $ - $ -
811,366 - - -
332,421 - - -
- - - -
- - - -
- - - 156,324
1,287,061 - - 156,324
- - - 3,937
- - - -
- - - -
- - - -
149,654 - - -
2,702,584 - 285,017 143,757
10,500 - - -
- - - -
2,862,738 - 285,017 147,694
(1,575,677) - (285,017) 8,630
- - - -
- - - -
10,500 - - -
10,500 - - -
(1,565,177) - (285,017) 8,630
11,108,562 831 633,994 1,217,121
Preliminary
$ 9,543,385 $ 831 $ 348,977 $ 1,225,751
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(134)
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
Cultural 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 (Deficit) - Beginning of Year
FUND BALANCES (Deficit) - END OF YEAR
Debt Service Funds
Public Total Other
Financing Parking Governmental
Authority Authority Funds
$ - $ - $ 143,274
- - 20,259,672
- - 1,924,566
558,451 316 1,183,824
- - 72,107
- - 897,087
558,451 316 24,480,530
- - 3,937
- - 154,515
295,562 - 9,465,472
- - -
- - 4,369,383
- - 9,391,848
7,194,296 - 7,227,940
5,880,968 - 5,883,179
13,370,826 - 36,496,274
(12,812,375) 316 (12,015,744)
13,856,375 - 14,785,204
(811,366) - (2,951,946)
- - 10,500
13,045,009 - 11,843,758
232,634 316 (171,986)
5,369,200 6,187 38,473,714
Preliminary
$ 5,601,834 $ 6,503 $ 38,301,728
Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
STATE GAS TAX
YEAR ENDED JUNE 30, 2024
(135)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 2,727,134 $ 2,727,134 $ 2,727,134 $ - Resources (Inflows):
Intergovernmental 3,720,671 3,720,671 3,709,045 (11,626) Use of Money and Property 20,000 20,000 95,619 75,619
Miscellaneous 6,000 6,000 17,825 11,825
Transfers In - - - -
Amounts Available for Appropriations 6,473,805 6,473,805 6,549,623 75,818 Charges to Appropriation (Outflow):
Public Works 1,437,396 1,437,396 1,462,195 (24,799)
Capital Outlay 1,650,000 1,650,000 744,356 905,644
Total Charges to Appropriations 3,087,396 3,087,396 2,206,551 880,845 Budgetary Fund Balance - End of Year $ 3,386,409 $ 3,386,409 $ 4,343,072 $ 956,663 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
PARKS AND RECREATION FACILITIES
YEAR ENDED JUNE 30, 2024
(136)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 99,643 $ 99,643 $ 99,643 $ - Resources (Inflows):
Charges for Services 31,500 31,500 27,200 (4,300)
Amounts Available for Appropriations 131,143 131,143 126,843 (4,300) Charges to Appropriation (Outflow):
Capital Outlay 23,000 123,000 - 123,000
Total Charges to Appropriations 23,000 123,000 - 123,000 Budgetary Fund Balance - End of Year $ 108,143 $ 8,143 $ 126,843 $ 118,700 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
NARCOTIC SEIZURE / FORFEITURE
YEAR ENDED JUNE 30, 2024
(137)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 183,317 $ 183,317 $ 183,317 $ - Resources (Inflows):
Use of Money and Property 10,000 10,000 15,463 5,463
Fines and Forfeitures 20,000 20,000 72,107 52,107
Transfers In - 5,742 - (5,742)
Amounts Available for Appropriations 213,317 219,059 270,887 51,828 Charges to Appropriation (Outflow):
Public Safety 158,699 234,182 147,004 87,178
Capital Outlay - 563 - 563
Debt Service:
Principal Retirement - - 23,144 (23,144)
Interest and Fiscal Charges - - 2,211 (2,211)
Total Charges to Appropriations 158,699 234,745 172,359 62,386 Budgetary Fund Balance - End of Year $ 54,618 $ (15,686) $ 98,528 $ 114,214 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
PROPOSITION A
YEAR ENDED JUNE 30, 2024
(138)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 2,641,537 $ 2,641,537 $ 2,641,537 $ - Resources (Inflows):
Intergovernmental 1,993,365 1,993,365 1,828,888 (164,477) Use of Money and Property 30,000 30,000 83,568 53,568
Amounts Available for Appropriations 4,664,902 4,664,902 4,553,993 (110,909) Charges to Appropriation (Outflow):
Capital Outlay - 75,000 - 75,000
Transfers Out - 1,331,582 2,140,580 (808,998)
Total Charges to Appropriations - 1,406,582 2,140,580 (733,998) Budgetary Fund Balance - End of Year $ 4,664,902 $ 3,258,320 $ 2,413,413 $ (844,907) Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
PROPOSITION C
YEAR ENDED JUNE 30, 2024
(139)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 3,728,471 $ 3,728,471 $ 3,728,471 $ - Resources (Inflows):
Intergovernmental 1,653,444 1,653,444 1,517,020 (136,424) Use of Money and Property 120,000 120,000 159,870 39,870 Amounts Available for Appropriations 5,501,915 5,501,915 5,405,361 (96,554) Charges to Appropriation (Outflow):
Cultural and Leisure Services 566 - - -
Public Works 2,825 - - -
Capital Outlay 1,680,000 5,404,996 1,634,624 3,770,372
Total Charges to Appropriations 1,683,391 5,404,996 1,634,624 3,770,372 Budgetary Fund Balance - End of Year $ 3,818,524 $ 96,919 $ 3,770,737 $ 3,673,818 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
MEASURE R
YEAR ENDED JUNE 30, 2024
(140)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 1,794,520 $ 1,794,520 $ 1,794,520 $ - Resources (Inflows):
Intergovernmental 1,240,083 1,240,083 1,137,409 (102,674) Use of Money and Property 15,000 54,814 64,920 10,106
Amounts Available for Appropriations 3,049,603 3,089,417 2,996,849 (92,568) Charges to Appropriation (Outflow):
Cultural and Leisure Services 562 - - -
Public Works 2,144 - - -
Capital Outlay 1,285,000 2,877,848 737,104 2,140,744
Total Charges to Appropriations 1,287,706 2,877,848 737,104 2,140,744 Budgetary Fund Balance - End of Year $ 1,761,897 $ 211,569 $ 2,259,745 $ 2,048,176 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
LOCAL TRANSPORTATION ARTICLE 3
YEAR ENDED JUNE 30, 2024
(141)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit - Beginning of Year $ (907) $ (907) $ (907) $ - Resources (Inflows):
Intergovernmental 80,698 - - -
Amounts Available for Appropriations 79,791 (907) (907) - Charges to Appropriation (Outflow):
Capital Outlay 80,698 145,541 72,425 73,116
Total Charges to Appropriations 80,698 145,541 72,425 73,116 Budgetary Fund Deficit - End of Year $ (907) $ (146,448) $ (73,332) $ 73,116 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2024
(142)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 281,487 $ 281,487 $ 281,487 $ - Resources (Inflows):
Intergovernmental 88,000 88,000 74,129 (13,871)
Use of Money and Property 2,000 2,000 9,625 7,625
Transfers In - 45 - (45)
Amounts Available for Appropriations 371,487 371,532 365,241 (6,291) Charges to Appropriation (Outflow):
Housing and Community Development 117,510 120,692 48,071 72,621 Capital Outlay 150,000 194,355 - 194,355
Debt Service:
Principal Retirement 1,919 1,919 - 1,919
Interest and Fiscal Charges 1,420 1,420 - 1,420
Total Charges to Appropriations 270,849 318,386 48,071 270,315 Budgetary Fund Balance - End of Year $ 100,638 $ 53,146 $ 317,170 $ 264,024 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
STORM DRAIN IMPROVEMENT
YEAR ENDED JUNE 30, 2024
(143)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 234,415 $ 234,415 $ 234,415 $ - Resources (Inflows):
Charges for Services 30,000 36,000 34,655 (1,345)
Amounts Available for Appropriations 264,415 270,415 269,070 (1,345) Charges to Appropriation (Outflow):
Capital Outlay 200,000 228,425 - 228,425
Total Charges to Appropriations 200,000 228,425 - 228,425 Budgetary Fund Balance - End of Year $ 64,415 $ 41,990 $ 269,070 $ 227,080 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
STREET LANDSCAPING AND LIGHTING DISTRICT
YEAR ENDED JUNE 30, 2024
(144)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 113,320 $ 113,320 $ 113,320 $ - Resources (Inflows):
Charges for Services 1,523,600 1,523,600 1,503,280 (20,320) Miscellaneous 7,000 7,000 3,000 (4,000)
Transfers In - 950,759 928,829 (21,930)
Amounts Available for Appropriations 1,643,920 2,594,679 2,548,429 (46,250) Charges to Appropriation (Outflow):
Public Works 2,351,660 2,527,908 2,548,429 (20,521)
Debt Service:
Principal Retirement 56,005 56,005 - 56,005
Interest and Fiscal Charges 41,445 41,445 - 41,445
Total Charges to Appropriations 2,449,110 2,625,358 2,548,429 76,929 Budgetary Fund Balance - End of Year $ (805,190) $ (30,679) $ - $ 30,679 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2024
(145)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit - Beginning of Year $ (27,053) $ (27,053) $ (27,053) $ - Resources (Inflows):
Intergovernmental 285,916 338,096 358,820 20,724
Charges for Services - - 27,000 27,000
Amounts Available for Appropriations 258,863 311,043 358,767 47,724 Charges to Appropriation (Outflow):
Housing and Community Development 140,071 183,282 106,014 77,268 Capital Outlay 131,920 472,227 275,178 197,049
Total Charges to Appropriations 271,991 655,509 381,192 274,317 Budgetary Fund Deficit - End of Year $ (13,128) $ (344,466) $ (22,425) $ 322,041 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
DISASTER RECOVERY
YEAR ENDED JUNE 30, 2024
(146)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 312,318 $ 312,318 $ 312,318 $ - Resources (Inflows):
Charges for Services 1,000 - 10 10
Miscellaneous 50,000 19,788 19,788 -
Amounts Available for Appropriations 363,318 332,106 332,116 10 Charges to Appropriation (Outflow):
Public Safety 24,439 17,060 7,511 9,549
Total Charges to Appropriations 24,439 17,060 7,511 9,549 Budgetary Fund Balance - End of Year $ 338,879 $ 315,046 $ 324,605 $ 9,559 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2024
(147)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 1,356,801 $ 1,356,801 $ 1,356,801 $ - Resources (Inflows):
Intergovernmental 7,845,801 7,845,801 8,822,762 976,961 Use of Money and Property - - 76,866 76,866
Transfers In - 298 - (298)
Amounts Available for Appropriations 9,202,602 9,202,900 10,256,429 1,053,529 Charges to Appropriation (Outflow):
Housing and Community Development 7,702,744 7,702,744 9,015,825 (1,313,081) Total Charges to Appropriations 7,702,744 7,702,744 9,015,825 (1,313,081) Budgetary Fund Balance - End of Year $ 1,499,858 $ 1,500,156 $ 1,240,604 $ (259,552) Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
SUBDIVISION PARK TRUST
YEAR ENDED JUNE 30, 2024
(148)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 3,747,562 $ 3,747,562 $ 3,747,562 $ - Resources (Inflows):
Miscellaneous 350,000 750,000 700,150 (49,850)
Amounts Available for Appropriations 4,097,562 4,497,562 4,447,712 (49,850) Charges to Appropriation (Outflow):
Capital Outlay 1,963,101 3,324,367 1,139,884 2,184,483
Total Charges to Appropriations 1,963,101 3,324,367 1,139,884 2,184,483 Budgetary Fund Balance - End of Year $ 2,134,461 $ 1,173,195 $ 3,307,828 $ 2,134,633 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
MEASURE M
YEAR ENDED JUNE 30, 2024
(149)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 2,109,651 $ 2,109,651 $ 2,109,651 $ - Resources (Inflows):
Intergovernmental 1,405,427 1,405,427 1,284,377 (121,050) Use of Money and Property 30,000 30,000 92,047 62,047
Amounts Available for Appropriations 3,545,078 3,545,078 3,486,075 (59,003) Charges to Appropriation (Outflow):
Capital Outlay 1,450,000 3,361,336 905,902 2,455,434
Total Charges to Appropriations 1,450,000 3,361,336 905,902 2,455,434 Budgetary Fund Balance - End of Year $ 2,095,078 $ 183,742 $ 2,580,173 $ 2,396,431 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
MEASURE W
YEAR ENDED JUNE 30, 2024
(150)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 835,603 $ 835,603 $ 835,603 $ - Resources (Inflows):
Intergovernmental 720,000 720,000 715,856 (4,144)
Use of Money and Property - - 27,079 27,079
Transfers In - 5,284 - (5,284)
Amounts Available for Appropriations 1,555,603 1,555,603 1,578,538 (4,144) Charges to Appropriation (Outflow):
Public Works 203,272 247,296 209,105 38,191
Capital Outlay 520,000 1,911,543 751,017 1,160,526
Debt Service:
Principal Retirement 6,618 6,618 - 6,618
Interest and Fiscal Charges 4,897 4,897 - 4,897
Total Charges to Appropriations 734,787 2,170,354 960,122 1,210,232 Budgetary Fund Balance - End of Year $ 820,816 $ (614,751) $ 618,416 $ 1,206,088 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT PROJECTS
YEAR ENDED JUNE 30, 2024
(151)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 11,108,562 $ 11,108,562 $ 11,108,562 $ - Resources (Inflows):
Taxes 180,000 180,000 143,274 (36,726)
Intergovernmental - 1,697,937 811,366 (886,571)
Charges for Services 332,421 332,421 332,421 -
Miscellaneous - - - -
Subscription Financing - - 10,500 (10,500)
Amounts Available for Appropriations 11,620,983 13,318,920 12,406,123 (933,797) Charges to Appropriation (Outflow):
Public Works 170,930 145,556 149,654 (4,098)
Capital Outlay 2,203,334 11,380,091 2,702,584 8,677,507 Debt Service:
Principal Retirement 13,085 13,085 10,500 2,585
Interest and Fiscal Charges 9,683 9,683 - 9,683
Total Charges to Appropriations 2,397,032 11,548,415 2,862,738 8,685,677 Budgetary Fund Balance - End of Year $ 9,223,951 $ 1,770,505 $ 9,543,385 $ 7,751,880 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
MAJOR FACILITIES RECONSTRUCTION
YEAR ENDED JUNE 30, 2024
(152)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 633,994 $ 633,994 $ 633,994 $ - Resources (Inflows):
Transfers In - 156,324 - (156,324)
Amounts Available for Appropriations 633,994 790,318 633,994 (156,324) Charges to Appropriation (Outflow):
Capital Outlay 500,000 1,113,280 285,017 828,263
Total Charges to Appropriations 500,000 1,113,280 285,017 828,263 Budgetary Fund Balance - End of Year $ 133,994 $ (322,962) $ 348,977 $ 671,939 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
OPEN SPACE ACQUISITION
YEAR ENDED JUNE 30, 2024
(153)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 1,217,121 $ 1,217,121 $ 1,217,121 $ - Resources (Inflows):
Miscellaneous - - 156,324 156,324
Amounts Available for Appropriations 1,217,121 1,217,121 1,373,445 156,324 Charges to Appropriation (Outflow):
General Government - - 3,937 (3,937)
Capital Outlay - 593,972 143,757 450,215
Total Charges to Appropriations - 593,972 147,694 446,278 Budgetary Fund Balance - End of Year $ 1,217,121 $ 623,149 $ 1,225,751 $ 602,602 Preliminary Draft
CITY OF REDONDO BEACH
BUDGETARY COMPARISON SCHEDULE
PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2024
(154)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 5,369,200 $ 5,369,200 $ 5,369,200 $ - Resources (Inflows):
Use of Money and Property 13,376,289 13,376,289 558,451 (12,817,838) Transfers In - 2,463,119 13,856,375 11,393,256
Amounts Available for Appropriations 18,745,489 21,208,608 19,784,026 (1,424,582) Charges to Appropriation (Outflow):
Housing and Community Development 273,975 273,975 295,562 (21,587) Debt Service:
Principal Retirement 8,115,000 8,115,000 7,194,296 920,704 Interest and Fiscal Charges 6,638,052 6,638,052 5,880,968 757,084 Transfers Out - 812,381 811,366 (1,015)
Total Charges to Appropriations 15,027,027 15,027,027 14,182,192 1,656,201 Budgetary Fund Balance - End of Year $ 3,718,462 $ 6,181,581 $ 5,601,834 $ 231,619 Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2024
(155)
Business-Type Activities - Enterprise Funds
Solid Waste Transit Totals
ASSETS
Current Assets:
Cash and Cash Equivalents $ 2,223,530 $ 1,162,111 $ 3,385,641 Receivables:
Accounts 317,918 31,984 349,902
Taxes 100,750 - 100,750
Due from Other Governments - 82,675 82,675
Due from Other Funds - - -
Restricted Assets:
Cash with Fiscal Agents - 63 63
Total Current Assets 2,642,198 1,276,833 3,919,031
Noncurrent:
Capital Assets - Net of Accumulated Depreciation/Amortization 36,924 1,767,374 1,804,298 Total Noncurrent Assets 36,924 1,767,374 1,804,298
Total Assets 2,679,122 3,044,207 5,723,329
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items 390,316 270,564 660,880
Deferred OPEB Related Items 35,856 28,354 64,210
Total Deferred Outflows of Resources 426,172 298,918 725,090
LIABILITIES
Current Liabilities:
Accounts Payable 81,125 664,074 745,199
Accrued Interest 5,110 4,471 9,581
Unearned Revenues 42,218 1,025 43,243
Due to Other Funds - 922,643 922,643
Due to Other Governments - 266,467 266,467
Accrued Compensated Absences 12,742 18,366 31,108
Long-Term Obligations - Due in One Year 42,644 37,314 79,958 Total Current Liabilities 183,839 1,914,360 2,098,199
Noncurrent Liabilities:
Accrued Compensated Absences 38,222 55,090 93,312
Long-Term Debt - Due in More than One Year 1,139,460 997,028 2,136,488 Net Pension Liability 249,611 173,029 422,640
Net OPEB Liability 111,565 88,223 199,788
Total Noncurrent Liabilities 1,538,858 1,313,370 2,852,228 Total Liabilities 1,722,697 3,227,730 4,950,427
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 25,588 17,737 43,325
Deferred OPEB Related Items 29,840 23,596 53,436
Total Deferred Inflows of Resources 55,428 41,333 96,761
NET POSITION
Net Investment in Capital Assets 25,224 1,767,374 1,792,598 Unrestricted 1,301,945 (1,693,312) (391,367)
Total Net Position $ 1,327,169 $ 74,062 $ 1,401,231
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2024
(156)
Business-Type Activities - Enterprise Funds
Solid Waste Transit Totals
OPERATING REVENUES
Sales and Service Charges $ 6,824,240 $ 216,864 $ 7,041,104 Miscellaneous 166,532 243 166,775
Total Operating Revenues 6,990,772 217,107 7,207,879
OPERATING EXPENSES
Administrative and General 41,246 537,201 578,447
Personnel Services 818,083 825,316 1,643,399
Contractual Services 5,416,740 3,904,196 9,320,936
Internal Service Charges 323,454 415,051 738,505
Depreciation Expense 2,084 258,540 260,624
Total Operating Expenses 6,601,607 5,940,304 12,541,911 OPERATING INCOME (LOSS) 389,165 (5,723,197) (5,334,032)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 27,206 3,343,088 3,370,294
Interest Expense (30,909) (26,957) (57,866)
Total Nonperating Revenues (Expenses) (3,703) 3,316,131 3,312,428 INCOME (LOSS) BEFORE TRANSFERS 385,462 (2,407,066) (2,021,604) Transfers In 73,192 2,204,623 2,277,815
Transfers Out (73,192) (64,043) (137,235)
CHANGES IN NET POSITION 385,462 (266,486) 118,976
Net Position - Beginning of year 941,707 340,548 1,282,255 NET POSITION - END OF YEAR 1,327,169 74,062 1,401,231
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2024
(157)
Business-Type Activities - Enterprise Funds
Solid Waste Transit Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 6,995,332 $ 186,504 $ 7,181,836 Cash Paid to Suppliers for Goods and Services (6,061,241) (4,792,180) (10,853,421) Cash Paid to Employees for Services (809,542) (855,099) (1,664,641) Net Cash Provided (Used) by Operating Activities 124,549 (5,460,775) (5,336,226)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Transfers Out (73,192) (64,043) (137,235)
Cash Transfers In 73,192 2,204,623 2,277,815
Payments Made to Other Funds - - -
Principal Paid on Noncapital Debt Issues (42,336) (37,044) (79,380) Interest Paid on Noncapital Debt (30,886) (26,936) (57,822) Grant Subsidies 27,206 5,005,329 5,032,535
Net Cash Provided (Used) by Noncapital
Financing Activities (46,016) 7,081,929 7,035,913
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (23,569) (615,740) (639,309) Net Cash Used by Capital and Related
Financing Activities (23,569) (615,740) (639,309)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 54,964 1,005,414 1,060,378
Cash and Cash Equivalents - Beginning of Year 2,168,566 156,760 2,325,326 CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,223,530 $ 1,162,174 $ 3,385,704
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ 389,165 $ (5,723,197) $ (5,334,032) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Depreciation 2,084 258,540 260,624
(Increase) Decrease In:
Accounts Receivable 5,676 (30,603) (24,927)
Taxes Receivable (1,116) - (1,116)
Deferred Outflow Pension Related Items 80,117 108,226 188,343 Deferred Outflow OPEB Related Items (2,741) 219 (2,522) Increase (Decrease) In:
Accounts Payable (365,623) (9,029) (374,652)
Unearned Revenue - (469) (469)
Net Pension Liability 51,182 13,255 64,437
Net OPEB Liability 2,250 (6,099) (3,849)
Deferred Inflow Pension Related Items (34,661) (30,775) (65,436) Deferred Inflow OPEB Related Items (10,325) (11,060) (21,385) Compensated Absences 8,541 (29,783) (21,242)
Net Cash Provided (Used) by Operating Activities $ 124,549 $ (5,460,775) $ (5,336,226) Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2024
(158)
Governmental Activities - Internal Service Funds
Vehicle Building Information
Replacement Occupancy Technology
ASSETS
Current Assets:
Cash and Cash Equivalents $ 10,884,641 $ 2,568,660 $ 2,050,911 Receivables:
Accounts 54,454 - -
Due from Other Funds - - -
Total Current Assets 10,939,095 2,568,660 2,050,911
Noncurrent:
Capital Assets - Net of Accumulated Depreciation/Amortization 6,881,730 115,183 1,827,061 Total Noncurrent Assets 6,881,730 115,183 1,827,061
Total Assets 17,820,825 2,683,843 3,877,972
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items 245,707 596,345 563,441
Deferred OPEB Related Items 26,715 61,286 47,150
Total Deferred Outflows of Resources 272,422 657,631 610,591
LIABILITIES
Current Liabilities:
Accounts Payable 174,661 433,511 301,311
Accrued Interest 7,089 10,585 15,505
Accrued Compensated Absences 10,027 26,227 16,431
Accrued Claims and Judgments - - -
Long-Term Obligations - Due in One Year 77,537 88,334 275,018 Total Current Liabilities 269,314 558,657 608,265
Noncurrent Liabilities:
Accrued Compensated Absences 30,080 78,680 49,297
Accrued Claims and Judgments - - -
Long-Term Debt - Due in More than One Year 1,199,920 2,360,310 2,670,597 Net Pension Liability 157,133 381,370 360,327
Net OPEB Liability 83,123 190,688 146,704
Total Noncurrent Liabilities 1,470,256 3,011,048 3,226,925 Total Liabilities 1,739,570 3,569,705 3,835,190
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 16,108 39,094 36,937
Deferred OPEB Related Items 22,232 51,002 39,238
Total Deferred Inflows of Resources 38,340 90,096 76,175
NET POSITION
Net Investment in Capital Assets 6,786,377 115,183 1,308,982 Unrestricted 9,528,960 (433,510) (731,784)
Total Net Position
Preliminary
$ 16,315,337 $ (318,327) $ 577,198
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF NET POSITION (CONTINUED)
INTERNAL SERVICE FUNDS
JUNE 30, 2024
(159)
ASSETS
Current Assets:
Cash and Cash Equivalents
Receivables:
Accounts
Due from Other Funds
Total Current Assets
Noncurrent:
Capital Assets - Net of Accumulated Depreciation/Amortization Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items
Deferred OPEB Related Items
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities:
Accounts Payable
Accrued Interest
Accrued Compensated Absences
Accrued Claims and Judgments
Long-Term Obligations - Due in One Year
Total Current Liabilities
Noncurrent Liabilities:
Accrued Compensated Absences
Accrued Claims and Judgments
Long-Term Debt - Due in More than One Year
Net Pension Liability
Net OPEB Liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items
Deferred OPEB Related Items
Total Deferred Inflows of Resources
NET POSITION
Net Investment in Capital Assets
Unrestricted
Total Net Position
Governmental Activities - Internal Service Funds
Self-Insurance Emergency Major Facilities
Program Communications Repair Totals
$ 9,743,683 $ 4,891,668 $ 662,052 $ 30,801,615
- - - 54,454
- - - -
9,743,683 4,891,668 662,052 30,856,069
95,878 996,225 1,020,478 10,936,555
95,878 996,225 1,020,478 10,936,555
9,839,561 5,887,893 1,682,530 41,792,624
584,418 534,329 - 2,524,240
45,797 65,028 - 245,976
630,215 599,357 - 2,770,216
1,421,318 7 105,361 2,436,169
730 14,782 - 48,691
- 28,047 - 80,732
1,203,177 - - 1,203,177
6,092 126,871 - 573,852
2,631,317 169,707 105,361 4,342,621
- 84,137 - 242,194
23,199,925 - - 23,199,925
162,780 3,266,019 - 9,659,626
505,388 483,735 - 1,887,953
142,497 202,333 - 765,345
24,010,590 4,036,224 - 35,755,043
26,641,907 4,205,931 105,361 40,097,664
17,681 12,771 - 122,591
38,113 54,116 - 204,701
55,794 66,887 - 327,292
95,878 980,775 915,117 10,202,312
(16,323,803) 1,233,657 662,052 (6,064,428)
Preliminary
$ (16,227,925) $ 2,214,432 $ 1,577,169 $ 4,137,884
Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(160)
OPERATING REVENUES
Sales and Service Charges
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Administrative and General
Personnel Services
Contractual Services
Internal Service Charges
Depreciation and Amortization Expense
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Interest Revenue
Interest Expense
Gain (Loss) on Disposal of Capital Assets
Total Nonperating Revenues (Expenses)
INCOME (LOSS) BEFORE TRANSFERS
Transfers In
Transfers Out
CHANGES IN NET POSITION
Net Position (Deficit) - Beginning of year
NET POSITION (DEFICIT) - END OF YEAR
Governmental Activities - Internal Service Funds
Vehicle Building Information
Replacement Occupancy Technology
$ 4,862,726 $ 3,316,655 $ 4,243,192
216,228 695 140,750
5,078,954 3,317,350 4,383,942
1,581,921 1,583,562 545,299
654,914 1,453,604 1,047,201
17,291 343,514 2,068,335
403,277 465,981 557,676
1,189,704 19,903 312,854
3,847,107 3,866,564 4,531,365
1,231,847 (549,214) (147,423)
- - -
(34,478) (63,985) (70,060)
115,613 - -
81,135 (63,985) (70,060)
1,312,982 (613,199) (217,483)
73,192 151,612 150,305
(73,192) (151,612) (150,305)
1,312,982 (613,199) (217,483)
15,002,355 294,872 794,681
$ 16,315,337 $ (318,327) $ 577,198
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION (CONTINUED)
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(161)
OPERATING REVENUES
Sales and Service Charges
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Administrative and General
Personnel Services
Contractual Services
Internal Service Charges
Depreciation and Amortization Expense
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Interest Revenue
Interest Expense
Gain (Loss) on Disposal of Capital Assets
Total Nonperating Revenues (Expenses)
INCOME (LOSS) BEFORE TRANSFERS
Transfers In
Transfers Out
CHANGES IN NET POSITION
Net Position (Deficit) - Beginning of year
NET POSITION (DEFICIT) - END OF YEAR
Governmental Activities - Internal Service Funds
Self-Insurance Emergency Major Facilities
Program Communications Repair Totals
$ 1,822,687 $ 2,554,415 $ 111,132 $ 16,910,807
4,938,438 - - 5,296,111
6,761,125 2,554,415 111,132 22,206,918
11,016,266 141,567 - 14,868,615
1,140,252 2,031,389 - 6,327,360
182,926 284,045 - 2,896,111
349,668 720,467 - 2,497,069
5,491 233,011 30,807 1,791,770
12,694,603 3,410,479 30,807 28,380,925
(5,933,478) (856,064) 80,325 (6,174,007)
47,385 - - 47,385
(4,441) (88,361) - (261,325)
- - - 115,613
42,944 (88,361) - (98,327)
(5,890,534) (944,425) 80,325 (6,272,334)
10,456 208,844 - 594,409
(10,456) (208,844) - (594,409)
(5,890,534) (944,425) 80,325 (6,272,334)
(10,337,391) 3,158,857 1,496,844 10,410,218
$ (16,227,925) $ 2,214,432 $ 1,577,169 $ 4,137,884
Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(162)
Governmental Activities - Internal Service Funds
Vehicle Building Information
Replacement Occupancy Technology
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 5,087,766 $ 3,317,350 $ 4,383,942 Cash Paid to Suppliers for Goods and Services (1,988,715) (2,040,173) (2,852,958) Cash Paid to Employees for Services (647,587) (1,438,233) (1,054,623) Net Cash Provided (Used) by Operating Activities 2,451,464 (161,056) 476,361
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Cash Transfers Out (73,192) (151,612) (150,305)
Cash Transfers In 73,192 151,612 150,305
Payments Made to Other Funds - - -
Proceeds from Noncapital Debt - - 646,240
Principal Paid on Noncapital Debt (42,336) (87,696) (225,353) Interest Paid on Noncapital Debt (4,276) (63,938) (6,492) Net Cash Provided (Used) by Noncapital
Financing Activities (46,612) (151,634) 414,395
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (2,251,939) - (783,347) Principal Paid on Capital Debt (36,200) - (86,939)
Interest Paid on Capital Debt (30,909) - (59,291)
Proceeds from Sale of Capital Assets 115,613 - -
Net Cash Provided (Used) by Capital and Related
Financing Activities (2,203,435) - (929,577)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - - -
Net Cash Provided (Used) by Investing Activities - - -
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 201,417 (312,690) (38,821)
Cash and Cash Equivalents - Beginning of Year 10,683,224 2,881,350 2,089,732 CASH AND CASH EQUIVALENTS - END OF YEAR $ 10,884,641 $ 2,568,660 $ 2,050,911
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss) $ 1,231,847 $ (549,214) $ (147,423) Adjustments to Reconcile Operating Income to Net
Cash Provided (Used) by Operating Activities:
Depreciation and Amortization 1,189,704 19,903 312,854
Loss on CIP write-off - - -
(Increase) Decrease In:
Accounts Receivable 8,812 - -
Deferred Outflow Pension Related Items 103,926 167,946 173,420 Deferred Outflow OPEB Related Items 746 (4,758) 5,426
Prepaid Expenses - - 11,910
Increase (Decrease) In:
Accounts Payable (53,280) 202,977 186,899
Claims and Judgments - - -
Net Pension Liability 9,657 58,991 49,519
Net OPEB Liability (7,529) 4,080 (26,856)
Deferred Inflow Pension Related Items (28,670) (58,789) (57,433) Deferred Inflow OPEB Related Items (11,076) (17,563) (24,533) Compensated Absences 7,327 15,371 (7,422)
Net Cash Provided (Used) by Operating Activities $ 2,451,464 $ (161,056) $ 476,361 Preliminary Draft
CITY OF REDONDO BEACH
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(163)
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 NONCAPITAL FINANCING
ACTIVITIES
Cash Transfers Out
Cash Transfers In
Payments Made to Other Funds
Proceeds from Noncapital Debt
Principal Paid on Noncapital Debt
Interest Paid on Noncapital Debt
Net Cash Provided (Used) by Noncapital
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
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received
Net Cash Provided (Used) by Investing Activities
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year
CASH AND CASH EQUIVALENTS - END OF YEAR
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net
Cash Provided (Used) by Operating Activities:
Depreciation and Amortization
Loss on CIP write-off
(Increase) Decrease In:
Accounts Receivable
Deferred Outflow Pension Related Items
Deferred Outflow OPEB Related Items
Prepaid Expenses
Increase (Decrease) In:
Accounts Payable
Claims and Judgments
Net Pension Liability
Net OPEB Liability
Deferred Inflow Pension Related Items
Deferred Inflow OPEB Related Items
Compensated Absences
Net Cash Provided (Used) by Operating Activities
Governmental Activities - Internal Service Funds
Self-Insurance Emergency Major Facilities
Program Communications Repair Totals
$ 10,242,841 $ 2,554,415 $ 111,132 $ 25,697,446
(12,808,362) (1,113,591) (79,183) (20,882,982)
(1,140,252) (2,026,566) - (6,307,261)
(3,705,773) (585,742) 31,949 (1,492,797)
(10,456) (208,844) - (594,409)
10,456 208,844 - 594,409
- - - -
- - - 646,240
(6,048) (126,954) - (488,387)
(4,438) (88,114) - (167,258)
(10,486) (215,068) - (9,405)
- (44,899) (413,660) (3,493,845)
- - - (123,139)
- - - (90,200)
- - - 115,613
- (44,899) (413,660) (3,591,571)
47,385 47,385
47,385 - - 47,385
(3,668,874) (845,709) (381,711) (5,093,773)
13,412,557 5,737,377 1,043,763 35,848,003
$ 9,743,683 $ 4,891,668 $ 662,052 $ 30,754,230
$ (5,933,478) $ (856,064) $ 80,325 $ (6,174,007)
5,491 233,011 30,807 1,791,770
45,362 - - 45,362
- - - 8,812
(476,003) (23,499) - (54,210)
(40,056) (5,788) - (44,430)
- - - 11,910
(1,406,957) (94,254) (79,183) (1,243,798)
3,481,716 - - 3,481,716
459,659 177,771 - 755,597
123,547 6,774 - 100,016
3,796 (10,778) - (151,874)
31,150 (17,738) - (39,760)
- 4,823 - 20,099
$ (3,705,773) $ (585,742) $ 31,949 $ (1,492,797)
Preliminary Draft