Redondo Beach City Council
September 15, 2026

MTA
TDA
GUIDE
SECTION Initial

4. FIFTY PERCENT EXPENDITURE LIMITATION ______
Claimant filing a claim pursuant to PUC Section 99268.1 certifies

2.2.1 that it was in compliance with PUC Section 99268 during the 1978-79 fiscal year, and further certifies that it will remain in compliance with that section during the project year.

5. REVENUE RATIOS FOR OLDER OPERATORS ______
Claimant filing a claim pursuant to PUC Section 99268.2

2.2.2 certifies that it will maintain for the project year that ratio of fare revenues and local support to operating cost which was maintained during the 1978-79 fiscal year, and further assures for the project year that it reasonably anticipates achieving the ratio of fare revenues to operating cost at least equal to the ratio maintained in FY 1978-79, or (a) 20 percent if serving an urbanized area, and (b) 10 percent if serving a nonurbanized area, whichever is greater.

6. REVENUE RATIOS FOR NEWER URBANIZED AREA OPERATORS ______ Claimant filing a claim pursuant to PUC Section 99268.3 certifies

2.2.2 that it will maintain for the project year at least that ratio of fare revenues and local support to operating cost which was maintained during FY 1978-79 if that ratio was greater than 20 percent; claimant further assures, for the project year, that it reasonably anticipates achieving a ratio of fare revenues to operating cost equal to or greater than 20 percent for the project year.

7. REVENUE RATIOS FOR NEWER NON-URBANIZED AREA ______

OPERATORS

2.2.2 Claimant filing a claim pursuant to PUC Section 99268.4 certifies that it will maintain for the project year at least that ratio of fare revenues and local support to operating cost which was maintained during FY 1978-79 if that ratio was greater than 10 percent; claimant further assures, for the project year, that it reasonably anticipates achieving a ratio of fare revenues to operating cost equal to or greater than 10 percent.
8a. REVENUE RATIOS FOR EXCLUSIVE SERVICES TO ______

ELDERLY AND HANDICAPPED

2.2.3 Claimant filing a claim pursuant to PUC Section 99268.5 certifies that, for the purpose of the claim, it provides services using vehicles for the exclusive use of elderly and handicapped persons.
488

STANDARD ASSURANCES FOR APPLICANTS

MTA
TDA
GUIDE
SECTION Initial
8b. REVENUE RATIOS FOR PARATRANSIT SERVICES ______
Claimant filing a claim pursuant to PUC Section

2.2.3 99275.5c (Article 4.5) further certifies that, for the project year, it reasonably anticipates achieving the performance criteria, local match requirements, or fare recovery ratios adopted by MTA.

9. EXTENSION OF SERVICE ______
Claimant that received an allocation of Local Transportation

1.8.4 Funds for an extension of service pursuant to PUC Section 99268.8

2.2.5 certifies that it will file a report of these services pursuant to CAC Section 6633.8b within 90 days after the close of the fiscal year in which that allocation was granted.

10. RETIREMENT SERVICE ______
Claimant filing a claim pursuant to PUC Section 99260 certifies

2.1.7 that: (a) the current cost of its retirement system is fully funded with respect to the officers and employees of its public transportation system; or (b) the operator is implementing a plan approved by the transportation planning agency which will fully fund the retirement system for such officers and employees within 40 years; or (c) the operator has a private pension plan which sets aside and invests, or on a current basis, funds sufficient to provide for the payment of future benefits, and which is fully compliant with the requirements stated in PUC Sections 99272 and 99273.
11a. USE OF FEDERAL FUNDS ______
Claimant filing a claim for TDA funds for capital intensive projects

2.2.1 pursuant to PUC Sec. 99268.7 certifies that it has made every

2.2.8 effort to obtain federal funding for any project which is funded pursuant to PUC Sec. 99268.7.
11b. Claimant qualifying for funds pursuant to PUC Sec. 99268.1 and filing a claim for TDA funds in excess of the amount allowed

2.2.1d under PUC Sec. 99268 certifies that such funds are required in order to obtain maximum federal operating funds in the year such funds are claimed, pursuant to PUC Sec. 99267.5 and CAC Sec. 6633.1. 489

STANDARD ASSURANCES FOR APPLICANTS

MTA
TDA
GUIDE
SECTION Initial

12. CHP CERTIFICATION ______
Claimant filing a claim for Local Transportation Funds has included

2.2.9 in the claim a certification completed within the last 13 months by the California Highway Patrol indicating compliance with Vehicle Code Section 1808.1, indicating that the operator has participated in a "pull notice system" to examine driver's records, as specified in PUC Sec. 99251.

13. STA EFFICIENCY STANDARDS* ______
Beginning in FY 1992, claimant filing a claim for State Transit Assistance Funds for operating purposes certifies that it has met the efficiency standards which limit cost per hour increases, pursuant to PUC Sec. 99314.6. This requirement is suspended until July 1, 2027.

14. REDUCED TRANSIT FARES ______
Claimants of TDA funds who offer reduced fares to senior citizens certify that: (a) The Federal Medicare Identification Card is sufficient identification to receive senior citizen reduced fares if such fares are available; and (b) A disabled person or disabled veteran identification card issued pursuant to subdivision (d) of Vehicle Code Sections 22511.5 or 22511.9 (whichever is applicable) is sufficient identification to receive disabled person reduced fares if such reduced fares are available.
*STA Claimants Only.

(Legal Name of Applicant/Claimant)
___________________________

(Authorizing Signature)
Mike Witzansky, City Manager
(Print Name & Title)
490

CLAIM FORM

TDA CLAIM FORM
LTF PUBLIC TRANSPORTATION - ARTICLE 4

CLAIMANT: City of Redondo Beach

CONTACT PERSON: Tyron Gunn, Transit Manager TELEPHONE:310-697-3358

DATE: September 15, 2026 FISCAL YEAR: 2026-27 COUNTY STAFF: Los Angeles

PAYMENT RECIPIENT: City of Redondo Beach

ADDRESS: 415 Diamond Street, Redondo Beach, CA 90277

ATTENTION: Tyron Gunn, Transit Manager

PURPOSE REQUESTED PAYMENT AND RESERVES AMOUNT
Article 4 1. Payment from FY Allocation -
PUC 99260(a) Operations $ 792,763

2. Amount placed in Capital Reserve from
current year allocation (Complete
Table 2) $ 0

3. Total FY 2027 funding mark (1+2) $ 792,763
Authorized Signature:__________________________________________ (Claimant's Chief Administrator or Finance Officer)

Mike Witzansky, City Manager
CONDITION OF APPROVAL:

Approval of this claim and payment by the County Auditor to this claimant are subject to funds being available and to the provisions that such monies will be used only in accordance with the terms and conditions set forth by this claim.
491

CLAIM FORM

STATE TRANSIT ASSISTANCE FUND
STA Regular
Pursuant to Sections 6730-6735 of the California Administrative Code

CLAIMANT: City of Redondo Beach

CONTACT PERSON: Tyron Gunn, Transit Manager TELEPHONE:310-697-3358

DATE: September 15, 2026 FISCAL YEAR: 2026-27 COUNTY STAFF: Los Angeles

PAYMENT RECIPIENT: City of Redondo Beach

ADDRESS: 415 Diamond Street, Redondo Beach, CA 90277

ATTENTION: Tyron Gunn, Transit Manager

PURPOSE REQUESTED PAYMENT AND RESERVES AMOUNT
( ) CAC, Section 6730 (a) 1. Payment from Unallocated - Operations $ 108,811.00
( ) CAC, Section 6730 (b)
( ) CAC, Section 6730 (c) 2. Amount placed in Capital
( ) CAC, Section 6731 (a) Reserve from current year
( ) CAC, Section 6731 (b) allocation $ 0
( ) CAC, Section 6731 (c) (Complete Table 2)

3. Total for 1 & 2 = STA Regular Allocation $ 108,811

Authorized Signature:__________________________________________ (Claimant's Chief Administrator or Finance Officer)

Mike Witzansky, City Manager
CONDITION OF APPROVAL:

Approval of this claim and payment by the County Auditor to this claimant are subject to monies being available and to the provisions that such monies will be used only in accordance with the terms and conditions set forth by this claim and SCAG Allocation Instructions. 492

CLAIM FORM

STATE TRANSIT ASSISTANCE FUND
SB1 STA and SB1 STATE OF GOOD REPAIR
Pursuant to Sections 6730-6735 of the California Administrative Code

CLAIMANT: City of Redondo Beach

CONTACT PERSON: Tyron Gunn, Transit Manager TELEPHONE:310-697-3358

DATE: September 15, 2026 FISCAL YEAR: 2026-27 COUNTY STAFF: Los Angeles

PAYMENT RECIPIENT: City of Redondo Beach

ADDRESS: 415 Diamond Street, Redondo Beach, CA 90277

ATTENTION: Tyron Gunn, Transit Manager

PURPOSE REQUESTED PAYMENT AND RESERVES AMOUNT
( ) CAC, Section 6730 (a) 1. Payment from SB1 STA Funds Operations $ 81,898
( ) CAC, Section 6730 (b)
( ) CAC, Section 6730 (c) 2. Amount placed in Capital
( ) CAC, Section 6731 (a) Reserve from current year
( ) CAC, Section 6731 (b) allocation (SB1 STA Funds) $ 0 ( ) CAC, Section 6731 (c) (Complete Table 2)

3. Total for 1 & 2 = SB1 STA Allocation $ 81,898

4. SB1 SGR Capital Funds $ 40,889
(Complete Table 2)

5. Total for 1, 2, 3 & 4 = SB1 STA/SGR
Allocation $ 122,787
Authorized Signature:__________________________________________ (Claimant's Chief Administrator or Finance Officer)

Mike Witzansky, City Manager
CONDITION OF APPROVAL:

Approval of this claim and payment by the County Auditor to this claimant are subject to monies being available and to the provisions that such monies will be used only in accordance with the terms and conditions set forth by this claim and SCAG Allocation Instructions. 493
Table L-1 (A)

HISTORICAL AND PROJECTED FINANCIAL STATUS

SOURCE AND APPLICATION OF CAPITAL FUNDS
BY YEAR OF EXPENDITURE ($ 000)
MODE:

SOURCE OF CAPITAL FUNDS: 2025 2026 2027
Audited Actual Planned

FEDERAL CAPITAL GRANTS
FTA Sec. 5309 (Sec. 3)
FAU Grants
FTA Sec. 5307(Sec. 9) 1,057
Other Federal (Assume 80/20 match) (Specify source)

STATE CAPITAL GRANTS AND SUBVENTIONS
TDA (ART 4) current from unallocated
TDA from prior years reserves
TDA (ART 8)
STA current from unallocated
STA from prior years reserve
SB1 SGR 18 30 46
Other State (Specify)

LOCAL CAPITAL GRANTS
System Generated
General Fund
Prop. A Local Return 97
Prop. A Discretionary Carry Over
Prop. C Discretionary
Prop. C Local Return
Prop. C 5% Security
Measure R Clean Fuel Bus Capital 32
Measure R 15% Local Return
Prop 1B PTMISEA Bridge Funds
Prop 1B Transit Security Bridge Funds
Other Local (Specify)
TOTAL CAPITAL REVENUE 18 30 1,232
TOTAL CAPITAL EXPENSES 18 30 1,232
494
Table L-1 (B)

HISTORICAL AND PROJECTED FINANCIAL STATUS

SOURCE AND APPLICATION OF OPERATING FUNDS
BY YEAR OF EXPENDITURE ($ 000)
SOURCE OF OPERATING FUNDS: 2025 2026 2027
Audited Actual Planned

FEDERAL CASH GRANTS AND REIMBURSEMENTS
FTA Sec. 5307 (Sec. 9) Operating
CMAQ (Operating)

STATE CASH GRANTS AND REIMBURSEMENTS
TDA Current from unallocated 929 710 792
STA Current from unallocated 139 187 190
Other State (Specify)

LOCAL CASH GRANTS AND REIMBURSEMENTS
Passenger Fares 199 162 165
Special Transit Service
Charter Service Revenues
Auxiliary Transportation Revenues 12 12 12
Non-transportation Revenues
Prop. A %40 Discretionary 470 501 508
Prop. A %25 Local Return 2,727 2,111 2,550
Prop. A Incentive fund
Prop. A Interest
BSIP 4 4 4
TSE
Base
MOSIP 138 147 148
Prop. C %40 Discretionary 29 26 29
Prop. C %20 Local Return
Prop. C %5 Security 46 26 25
Prop. C Other (Interest)
Other Local (Specify)
Measure R 20% Bus Operations 381 328 340
Measure M 20% Bus Operations 380 324 337
TOTAL OPERATING REVENUES 5,454 4,538 5,100
TOTAL OPERATING EXPENSES 5,454 4,538 5,100 495
TABLE 2
TDA
Total Capital Funds Reserved
for Future Payment (Total A & B):$ 0
Project Descriptions (A)Anticipated
Expenditure FY 2028
(B) Anticipated
Expenditure Future
Years
N/A 0 0
496
TABLE 2(B)
STA
Total Capital Funds Reserved
for Future Payment: $0
Project Descriptions (A)Anticipated
Expenditure FY 2028
(B) Anticipated
Expenditure Future
Years
N/A 0 0
TABLE 2(C)
SB1 STA/SGR
Total Capital Funds Reserved
for Future Payment: $0
Project Description(s) (A)Anticipated
Expenditure FY 2028
(B) Anticipated
Expenditure Future
Years
N/A 0 0
497
12 Mauchly Building I parkingconcepts.com Irvine, CA, 92618 949-864-3493 July 21, 2025
Brian Magumcia
Transit Analyst
City of Redondo Beach
1922 Artesia Blvd.

Redondo Beach, CA 90278
Dear Mr. Magumcia,
Transportation Concepts, a division of Parking Concepts, Inc. offers a 401(k)-savings plan to eligible employees with Principal Life Insurance Company. This personal equity plan (PEP) provides employees with the opportunity to contribute Pre-Tax or Roth contributions to their dedicated retirement savings plan, pursuant to Federal IRS contribution limits and regulations.

Should you have any questions regarding this information, please do not hesitate to contact me.

I can be best reached at [email protected] or (949) 757-7525.

Sincerely,
Zachary Jefferson
Zachary Jefferson
Human Resources Director
498
499
Administrative
Report
H.16., File # 26-1126 Meeting Date: 9/15/2026
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, WATERFRONT AND COMMUNITY SERVICES DIRECTOR TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2609-079 A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DECLARING PURSUANT TO THE SURPLUS LAND ACT THAT CITY OWNED PROPERTY AT 179 N. HARBOR DRIVE IS EXEMPT SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE
THE PROPERTY INCLUDES PORTIONS OF APN #S 7503-33-903, 7503-33-905, AND ADJACENT PUBLIC RIGHT OF WAY - R-10 SOCIAL HOUSE AND RELATED

EXECUTIVE SUMMARY
The State of California Surplus Land Act (SLA) requires all local agencies to prioritize affordable housing, parks, and open space when disposing of surplus land. Unfortunately, the SLA does not differentiate between public lands, and applies to sites like those in the Waterfront and Harbor area where land may become available due to lease expirations or other factors. The SLA requires that, before a local agency take any action to dispose of land, including the lease of land for development, the land must be declared as surplus land, or exempt surplus land, and the declaration must be supported by written findings. The proposed Resolution which would declare the subject site as exempt surplus land based on a statutory exemption for small parcels of one-half acre or less.

BACKGROUND
The R-10 Social House, located at 179 N. Harbor Drive, is currently operating on a month-to-month rental basis. Other uses located in the building structure are the Redondo Beach Marina Offices and operations yard, and some space used by the Paddle House. Given the opportunity to explore the development or upgrade the property through the solicitation of proposals, City staff have been looking at what area may be available to enhance the potential of the property and achieve the Strategic Plan and Waterfront Amenities Plan goals for the area. As such, staff has identified a larger footprint than the existing leasehold which includes adjacent vacant land, passageways, and a storage building and trash enclosure on the Captain Kidd’s leasehold, that could possibly be incorporated into the site offered. The exploration of incorporating elements of the Captain Kidd’s leasehold would require agreement of that lessee through a lease amendment.

Prior to preparing the proposed map, staff examined a number of potential configurations of the possible lease site. Staff determined that limiting the area of the site to one-half acre or less, thereby qualifying for the small parcel exemption under the SLA, would provide the City with greater control over use and disposition of the site. The actual footprint of the site, as shown in the map attached to

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H.16., File # 26-1126 Meeting Date: 9/15/2026
the Resolution, could be adjusted downward, as needed or desired, from that currently identified.

The land is proposed to be declared as exempt from the SLA as provided by section 103(c)(3)(a) of the SLA Guidelines, small surplus land parcels category, in which the land is less than the 21,780 square feet in area (half an acre), and is not contiguous to land owned by a local agency that is used for open-space or low- and moderate-income housing purposes.

Last month, the City received preliminary State Housing and Community Development Department (HCD) approval of the exemption for the site as shown. Council approval of the proposed Resolution declaring the site as exempt surplus land is necessary to obtain the exemption. The Resolution also specifies that the City provide notification of the availability of the site for open space purposes to certain designated parks and open-space agencies, consistent with State law, which will occur soon after approval of the Resolution.

COORDINATION
The recommended action was developed by the Waterfront and Economic Development Department in coordination with the City Attorney’s Office and outside counsel, and the Community Development Department.

FISCAL IMPACT
There is no fiscal impact associated with approval of the proposed Resolution. Staff time and attorney costs associated with the development of the recommendation are included in the Adopted FY 2026-27 Budget for the Waterfront Department. The development of the site, in whatever final configuration, is expected to result in increased revenues to the City.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Reso - No. CC-2609-079 Declaring Pursuant to the Surplus Land Act that City Owned Property at 179 N. Harbor Drive is Exempt Surplus Land and Not Necessary for the City’s Uses

501
RESOLUTION NO. CC-2609-079
179 N. Harbor Drive Surplus Land Act
PAGE NO. 1
RESOLUTION NO. CC-2609-079

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

REDONDO BEACH, CALIFORNIA, DECLARING PURSUANT TO
THE SURPLUS LAND ACT THAT CITY OWNED PROPERTY AT 179
N. HARBOR DRIVE IS EXEMPT SURPLUS LAND AND NOT
NECESSARY FOR THE CITY’S USE
WHEREAS, the City of Redondo Beach (“City”) is the fee simple owner of the real property located at 179 N. Harbor Drive, Redondo Beach (the “179 N. Harbor Drive Property”); and
WHEREAS, under the Surplus Land Act, Government Code Sections 54220- 54233 (“Act”), surplus land is land owned in fee simple by the City for which the City Council takes formal action in a regular meeting declaring that the land is surplus and not necessary for the City’s use, and the land must be declared either surplus land or exempt surplus land; and
WHEREAS, Section 54221(f)(1)(B) of the Surplus Land Act provides that surplus land that is less than one-half acre in area, and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes, is exempt surplus land; and
WHEREAS, the 179 N. Harbor Drive Property, as the City proposes to configure the parcel, is approximately 20,512 square feet (0.47 acres) in size as shown in Attachment A; and
WHEREAS, the 179 N. Harbor Drive Property, as the City proposes to configure the parcel, is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes; and WHEREAS, the City Council desires to declare the 179 N. Harbor Drive Property as exempt surplus land and to begin the process of contacting potential tenants who would be interested in leasing the 179 N. Harbor Drive Property and constructing and operating a restaurant or other food service use thereon; and WHEREAS, the City has consulted with HCD in accordance with the Surplus Land Act Guidelines to receive clarification as to whether the lease of the 179 N. Harbor Drive Property would be subject to the small parcel exemption of Government Code §54221(f)(1)(B).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
502
RESOLUTION NO. CC-2609-079
179 N. Harbor Drive Surplus Land Act
PAGE NO. 2
SECTION 1. The City Council hereby finds and determines that the above recitals are true and correct and have served as the basis, in part, for the findings and actions of the City set forth below.

SECTION 2. The City Council hereby declares that the 179 N. Harbor Drive Property is not needed for the use of the City. Site is depicted on Attachment A which is incorporated herein by this reference.

SECTION 3. The City Council hereby declares that the 179 N. Harbor Drive Property is exempt surplus land pursuant to Government Code Section 54221(f)(1)(B) because it is surplus land that that is less than one-half acre in area, and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderateincome housing purposes.

SECTION 4. The Waterfront and Economic Development Director, or his or her designee, shall send a notice of availability of the 179 N. Harbor Drive Property for open space purposes to the park or recreation departments of the City of Redondo Beach and the County of Los Angeles, the Los Angeles County Regional Park and Open Space District, the California Natural Resources Agency, and the California Department of Housing and Community Development, in accordance with the Act and the Surplus Land Act Guidelines.

SECTION 5. The Waterfront and Economic Development Director, or his or her designee, shall provide a copy of this resolution to the California Department of Housing and Community Development at least 30 days prior to the disposition of the 179 N. Harbor Drive Property in accordance with the Act and the Surplus Land Act Guidelines.

SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and shall enter the same in the Book of Original Resolutions.

PASSED, APPROVED AND ADOPTED this 15th day of September, 2026. ________________________
James A. Light, Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ________________________________ Joy A. Ford, City Attorney Eleanor Manzano, CMC, City Clerk 503
RESOLUTION NO. CC-2609-079
179 N. Harbor Drive Surplus Land Act
PAGE NO. 3

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF REDONDO BEACH )
I, Eleanor Manzano, City Clerk of the City of Redondo Beach, California, do hereby certify that Resolution No. CC-2609-079 was passed and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 15th day of September, 2026, and there after signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Eleanor Manzano, CMC
City Clerk
504
505
506
Administrative
Report
H.17., File # 26-1137 Meeting Date: 9/15/2026
To: MAYOR AND CITY COUNCIL
From: STEPHANIE MEYER, FINANCE DIRECTOR
TITLE

APPROVE THE AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2025

EXECUTIVE SUMMARY
The City’s independent auditors, CliftonLarsonAllen, LLP (CLA), have completed their annual audit of the City’s fiscal activities for the fiscal year ended June 30, 2025. The resulting reports are listed below. We are pleased to report the City received an unmodified opinion, which is the best opinion the City can receive. This means the auditor certifies that the City’s financial statements are fairly presented in all material respects and are in conformity with Generally Accepted Accounting Principles (GAAP) and Government Accounting Standards Board (GASB) requirements.

This report includes the Annual Comprehensive Financial Report (ACFR) and following documents:
· The Inmate Trust Fund Financial Statement is prepared and submitted as required by the state penal code. This fund accounts for the money received by the City from the telephone company for providing pay telephone service to City jail inmates. Monies received are to be used solely for the benefit of the inmates.
· The Governance Communication Letter summarizes significant changes in accounting practices required by newly applicable accounting standards, describes sensitive accounting estimates which the auditors found reasonable, lists the corrected misstatements identified during the audit, and makes other similar disclosures.
· The Internal Controls Communications Letter, or Management Letter, documents levels of control deficiencies identified by the Independent External Auditors during the audit of the City’s Annual Comprehensive Financial Report. This report includes both the findings identified by the auditors as well as management's responses and enables the public to gain an understanding of the City’s financial controls.

In addition, as part of this audit cycle, the City’s auditor will prepare:
· The Single Audit Report which is required for all federal and state funded programs. These programs are audited in conformity with the provisions of the Single Audit Act of 1984 and OMB Circular A-133, Audits of State and Local Governments. Staff anticipates completing this

507
H.17., File # 26-1137 Meeting Date: 9/15/2026
report by the end of October 2026.

The Budget and Finance Commission reviewed the draft ACFR at a special meeting on August 27, 2026. At the meeting, CLA’s Engagement Partner (the lead partner on the City’s audit) presented audit results and responded to questions. The Commission moved to receive and file the report with no comments.

On the afternoon of September 15, 2026, CLA’s representative will present the ACFR and overall audit results to the City’s Audit Committee and will respond to questions.

BACKGROUND
The ACFR reflects the financial position of the City and its component units for the fiscal year ending June 30, 2025. The primary purpose of the report, as defined by the City Charter, is to inform the Mayor and City Council of all financial and administrative activities of the previous fiscal year. In addition, the report provides critical information to the larger financial community and Redondo Beach residents. For the residents, the report helps to correlate City services and accomplishments with use of resources. For the financial community, this report provides information necessary to evaluate financial practices of the City, assure their soundness in accordance with GAAP, and determine the financial capacity of the City to incur and service debt for long-range capital planning.

As stated above, the City’s FY 2024-25 ACFR received an unmodified opinion. The auditor’s report highlighted three findings with recommendations for how to improve related procedures. Staff agrees with the auditor’s comments and is implementing practices in response to these changes. Two of the three findings carry over from the prior year; in each, the auditors note improvement, with the recommendation to continue existing progress. The third finding relates to prior year corrections.

These corrections resulted from historical practice predating current staff and accepted by the City’s prior auditor, and appeared as a result of staff’s proactive and detailed review identifying issues and presenting them with proposed corrections to the City’s new auditors. Since the FY 2023-24 audit, the City has hired and retained critical accounting staff, and with that increased capacity has implemented process documentation and cross-training procedures that will ensure continued improvement and future consistent application of best practices.

An audit is also required to obtain the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) and is often a requirement for grants or federal awards. The City has received this award for over 30 years, and will submit the FY 2024-25 audit for this award as well.

The City Council reviewed FY 2024-25 year-end budget results with the Budget Carryover Report on February 17, 2026, and approved related budget actions, including to carry over prior year encumbrances, and unspent capital project, grants and donations balances, and to appropriate onetime funds for specific projects for which Departments received funding, but were unable to spend during the fiscal year.

Staff recommends the City Council approve the City’s Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2025.

COORDINATION

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H.17., File # 26-1137 Meeting Date: 9/15/2026
The reports have been coordinated with the City’s independent auditors and all City Departments.

FISCAL IMPACT
The total cost for this activity is included in the Financial Services Department’s annual operating budget and is part of the Department’s annual work program.

APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS
· Report - Annual Comprehensive Financial Report (ACFR), Fiscal Year Ended June 30, 2025 a. Letter - Governance Communication
b. Letter - Internal Controls Communication
· Report - Inmate Trust Fund

509
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
Redondo Beach, California

FISCAL YEAR ENDED
JUNE 30, 2025
DRAFT
510

CITY OF REDONDO BEACH, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
DRAFT
511

CITY OF REDONDO BEACH

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

INTRODUCTORY SECTION
LETTER OF TRANSMITTAL 1

LIST OF PRINCIPAL OFFICIAL XVII

ORGANIZATIONAL CHART XVIII

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 2
MANAGEMENT’S DISCUSSION AND ANALYSIS 6

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 26
STATEMENT OF ACTIVITIES 28

FUND FINANCIAL STATEMENTS
BALANCE SHEET – GOVERNMENTAL FUNDS 31

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION 32

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES – GOVERNMENTAL FUNDS 33

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 34
STATEMENT OF NET POSITION – PROPRIETARY FUNDS 35

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION – PROPRIETARY FUNDS 37
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 39
STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS 43 STATEMENT OF CHANGES IN NET POSITION – FIDUCIARY FUNDS 44 NOTES TO BASIC FINANCIAL STATEMENTS 46
DRAFT
512

CITY OF REDONDO BEACH

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 103

BUDGETARY COMPARISON INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 104
BUDGETARY COMPARISON SCHEDULE – OTHER
INTERGOVERNMENTAL GRANTS 105
BUDGETARY COMPARISON SCHEDULE – LOW-MOD INCOME
HOUSING 106

PENSION INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER
PLAN 107
SCHEDULE OF PLAN CONTRIBUTIONS – MISCELLANEOUS PLAN –
AGENT MULTIPLE-EMPLOYER PLAN 109

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS – SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN 111 SCHEDULE OF PLAN CONTRIBUTIONS – SAFETY PLAN – AGENT
MULTIPLE-EMPLOYER PLAN 113

OPEB INFORMATION
SCHEDULE OF CHANGES IN OPEB LIABILITY AND RELATED RATIOS 115 SCHEDULE OF CONTRIBUTIONS 117

MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE
CAPITAL ASSETS 119

SUPPLEMENTARY INFORMATION
COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 125

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 131 BUDGETARY COMPARISON SCHEDULES – SPECIAL REVENUE FUNDS
STATE GAS TAX 137
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TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
PARKS AND RECREATION FACILITIES 138
NARCOTIC SEIZURE / FORFEITURE 139
PROPOSITION A 140
PROPOSITION C 141
MEASURE R 142
LOCAL TRANSPORTATION ARTICLE 3 143
AIR QUALITY IMPROVEMENT 144
STORM DRAIN IMPROVEMENT 145
STREET LANDSCAPING AND LIGHTING DISTRICT 146
COMMUNITY DEVELOPMENT BLOCK GRANT 147
DISASTER RECOVERY 148
HOUSING AUTHORITY 149
SUBDIVISION PARK TRUST 150
MEASURE M 151
MEASURE W 152
BUDGETARY COMPARISON SCHEDULES – CAPITAL PROJECT FUNDS
CAPITAL IMPROVEMENT PROJECTS 153
MAJOR FACILITIES RECONSTRUCTION 154
OPEN SPACE ACQUISITION 155
BUDGETARY COMPARISON SCHEDULES – DEBT SERVICE FUNDS
PUBLIC FINANCING AUTHORITY 156
COMBINING STATEMENT OF NET POSITION – NONMAJOR ENTERPRISE FUNDS 157

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – NONMAJOR ENTERPRISE FUNDS 158
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TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
COMBINING STATEMENT OF CASH FLOWS – NONMAJOR ENTERPRISE FUNDS 159
COMBINING STATEMENT OF NET POSITION – INTERNAL SERVICE
FUNDS 160

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – INTERNAL SERVICE FUNDS 162
COMBINING STATEMENT OF CASH FLOWS – INTERNAL SERVICE
FUNDS 164

STATISTICAL INFORMATION
NET POSITION BY COMPONENT 167
CHANGES IN NET POSITION 169
FUND BALANCES OF GOVERNMENTAL FUNDS 173
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 175

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE
PROPERTY 177
DIRECT AND OVERLAPPING PROPERTY TAX RATES 179
PRINCIPAL PROPERTY TAXPAYERS 180
PROPERTY TAX LEVIES AND COLLECTIONS 181
RATIOS OF OUTSTANDING DEBT BY TYPE 182
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT 183 LEGAL DEBT MARGIN INFORMATION 184
PLEDGED – REVENUE COVERAGE 186
DEMOGRAPHIC AND ECONOMIC STATISTICS 187
PRINCIPAL EMPLOYERS 188
FULL-TIME CITY GOVERNMENT EMPLOYEES BY FUNCTION 189
OPERATING INDICATORS BY FUNCTION 190
CAPITAL ASSET STATISTICS BY FUNCTION 191
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CITY OF REDONDO BEACH

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025

REDONDO BEACH PUBLIC FINANCING AUTHORITY, WASTEWATER

SYSTEM FINANCING PROJECT
CERTIFICATION OF CONTINUING DISCLOSURE 192
SEWER RATES PER MONTH 193
TOP TEN CUSTOMERS – SEWAGE USAGE 194
SEWER CONNECTIONS BY TYPE OF CUSTOMER 195

REDONDO BEACH PUBLIC FINANCING AUTHORITY, LEASEBACK

AGREEMENT
CERTIFICATION OF CONTINUING DISCLOSURE 196

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 198
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INTRODUCTORY SECTION
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Redondo Beach, CA 90277
Tel: 310.318.0683
Redondo.org
September __, 2026
Honorable Mayor, City Council and
Residents of the City of Redondo Beach:

We are happy to submit the FY 2024-25 Annual Comprehensive Financial Report (ACFR). The report presents the City’s financial statements in conformance with generally accepted accounting principles (GAAP) and audited by an independent firm of licensed certified public accountants in accordance with generally accepted auditing standards.

Ideally, the Annual Comprehensive Financial Report (ACFR) would have been completed by March of this year. The FY 2024-25 ACFR was postponed however, as a result of prior year audit delay and City staffing and auditor transition. That said, the ACFR is now complete and ready for presentation on behalf of the City, for the fiscal year ended June 30, 2025. As noted in the report, staff has made significant progress with the City’s auditors to improve procedures and has hired and retained key accounting staff that will improve the timing of audit delivery moving forward.

According to the City Charter, the role of the ACFR is to inform the Mayor and City Council on the financial and administrative activities of the previous fiscal year. In addition, the report provides critical information to Redondo Beach residents and the larger financial community.

For residents, the report helps to correlate City services and accomplishments with the use of resources. For the financial community, the report provides information necessary to evaluate financial practices of the City, assure their soundness in accordance with GAAP, and determine the financial capacity of the City to incur and service debt for long-range capital planning.

Responsibility for the accuracy of the data presented in the report and the completeness and fairness of the presentation, including disclosures, rests with the City. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in the annual report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformance with GAAP.

Because the cost of internal controls should not outweigh the benefits, the City’s comprehensive framework of controls has been designed to provide reasonable, rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. GAAP requires that management provide a narrative introduction, i.e., overview and analysis, to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal complements the MD&A and should be read together. The City’s MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.

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PROFILE OF THE CITY OF REDONDO BEACH
The City of Redondo Beach, incorporated in 1892, is located in the South Bay region of Los Angeles County and spans 6.3 square miles. The City of Redondo Beach has a population of approximately 68,4601 and remains a highly residential, non-industrial community. The City is highly educated and largely upscale, with a median home price of $1,460,000 in fiscal year 2024-252. The median income for a household in 2024 was $152,3873.

Redondo Beach has significant concentrations of employment in the northern portion of the City anchored by Northrop Grumman. It also has a vibrant hospitality sector near the Harbor/Pier area, an eclectic mix of specialty shops, restaurants and services in the Riviera Village, at the south end of the City, and a series of retail stores along the east edge of the City. Based on the number of full-time employees, the top ten employers in Redondo Beach are Northrop Grumman, Redondo Beach Unified School District, City of Redondo Beach, Impulse Space, The Cheesecake Factory, Macy's, Target Stores, Frontier, United States Post Office, the Kensington Redondo Beach.

The City is divided into five Council Districts and operates under a Council-Manager form of government. One councilperson is elected from each district and serves a term of four years, with a limit of two full terms. The Mayor is elected by the City at-large and is also limited to serving two four-year terms. Other elected officials are the City Treasurer, City Attorney, and City Clerk. Each of these elected positions serve a term of four years but differ from the Mayor and City Council in that individuals can be re-elected an unlimited number of times. The City Council is responsible for City policy, including passing Municipal Code Ordinances, adopting the budget, and appointing the City Manager along with various Board, Commission, and Committee members.

In addition to serving as the governing board of the City, the Mayor and City Council act as the Board of Directors for various component units of the City, including: the Redondo Beach Housing Authority, the Redondo Beach Public Financing Authority, the Redondo Beach Community Financing Authority, the Parking Authority of the City of Redondo Beach, and the Redevelopment/Successor Agency of the City of Redondo Beach. The City Manager is responsible for carrying out the policies and ordinances of the City Council and for hiring the non-elected heads of the City’s various departments. In May 2008, the Mayor and City Council established an audit committee to enhance the City’s communication with its independent accounting firm, ensuring increased involvement by the governing board in the City’s accounting processes. Also, in September 2015, the City Council adopted a resolution to expand the membership of the audit committee to include the elected City Clerk and the elected City Treasurer.

The City is classified as a full-service City, providing public safety through its Police and Fire Departments, along with a host of other services, including recreation and community services, libraries, parks, maintenance and improvement of streets and infrastructure, planning and zoning, housing, economic development, transit, and general government services. The City also operates and maintains a recreational harbor under a trust agreement with the State of California.

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The annual budget serves as the foundation for the City’s fiscal plan and policy prioritization.

The City Council is required to adopt an annual budget on or before June 30 of each year for the General Fund, Special Revenue Funds, Enterprise Funds, Capital Projects Fund, and Internal Service Funds. The City also adopts a five-year capital improvement program and a Redevelopment/Successor Agency budget.

The total adopted budget represents the level of appropriated budgetary control, which is defined as the total budget for all funds and divisions, and all revisions and amendments approved by the City Council subsequent to the initial budget adoption. The City Manager may authorize transfers within each fund and between line items or programs within each department, however, supplemental appropriations and transfers between funds or departments during the budget year must be approved with four affirmative votes of the City Council. Unexpended or unencumbered appropriations expire at the end of each fiscal year. Encumbered appropriations and grants and donations are re-appropriated in the ensuing year’s budget by action of the City Council. The City utilizes an encumbrance system, whereby commitments, such as purchase orders and unperformed contracts, are recorded as assigned fund balances at year end.

Significant Events, Accomplishments and Economic Development Activities.

Redondo Beach has historically remained fiscally sound through proactive management, disciplined expenditure oversight, development of a diversified revenue base, investing in public amenities and increasing revenues where appropriate. These financial practices have enabled the City to maintain its reserves and achieve an Aa1 credit rating. The City has a diversified tax base, supported by Property Tax, Sales Tax, Utility Users Tax (UUT) and Transient Occupancy Tax (TOT) as significant individual revenue sources. These are discussed in detail in the revenue sections below.

The City remained focused on economic development in FY 2024-25, with a number of highlights. A final certificate of occupancy was issued for a mixed-use project (Legado) that includes 115 apartment units and approximately 20,000 square feet of commercial space that was approved by the City Council on the corner of PCH and Palos Verdes Blvd.

Construction plans were approved for Phase 1A of the South Bay Galleria Mall Renovation and are pending permit issuance. Plans were also approved for Phase 1B of the South Bay Social District 300-unit mixed-used facility. Phase 2 of the project, which is inclusive of another 350 residential units and 8,000 square feet of retail along with a nearly 20,000 outdoor promenade was also entitled by the Planning Commission.

Other noteworthy projects include a business license and construction drawing submitted and approved for the expansion of Impulse Space, from 40,000 square feet to 250,000 square feet. 1 January 1, 2026, California State Department of Finance 2 HdL, Los Angeles County Auditor-Controller
3 2024 American Community Survey, US Census
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Additionally, a new 43-unit condominium project, located at 122 North Pacific Coast Highway was approved for construction.

The City has continued efforts to support the Waterfront as a welcoming destination. The City successfully hosts a number of special events each year that attract tens of thousands of visitors. The Waterfront also saw the opening of the new 21,000 square foot California Surf Club which includes a fully revamped indoor/outdoor public bar and restaurant space, private conference rooms, private dining rooms, fireside ocean lounges, a great room, private listening and art rooms, a games den and more.

In Spring 2025, the City installed blade signs for the businesses on International Boardwalk to improve curb appeal and attract visitors’ attention to these businesses. The blade signs sit perpendicular to the business, so as visitors walk down the boardwalk they see the blade signs for all of the businesses at once, and people on the bike path level of the boardwalk can view the blade signs from above. The City also continued its Storefront Improvement Program in the area, which provides matching City grant funding up to $50,000 per project to encourage and assist businesses making improvements to their storefronts and facades.

The City is a member of two business associations in the waterfront, the Pier Association and the King Harbor Association, and works with these groups to increase the number of visitors to the waterfront, improve the visitor experience, and plan waterfront events.

Property Tax
Property tax is the City’s largest single revenue source. It is imposed on real property (land and permanently attached improvements, such as buildings) and tangible personal property (moveable property) located within the City. Property is initially assessed by the County Assessor at a tax rate of 1.0% of the assessed value and can rise no more than 2.0% each year.

The City receives revenues equal to 16.5% of the tax rate from the County of Los Angeles Auditor/Controller’s Office. This equals 16.5 cents out of each dollar of property tax collected by Los Angeles County for property in the City. The City’s Property Tax revenue continues to be its strongest revenue stream, increasing by an average of approximately 6% annually over the past five years.

For FY 2024-25, property tax revenue was based on calendar year 2023 property values. Actual revenues were higher than budgeted. The City’s FY 2024-25 citywide assessed valuation is above the prior year by $1.2 billion, or 5.4%, increasing to $22.8 billion. The City’s assessed valuation amount is derived 81.7% from residential properties, 7.1% from commercial properties,

3.5% from industrial properties, and the remaining 7.7% from vacant, institutional, and other properties.

During FY 2024-25, property tax revenue (including homeowners’ exemptions and property tax trust fund) increased by $1.1 million, or 2.8%, to $39.1 million, consistent with the strong assessed valuation increase over the prior year.

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Sales Tax
Sales tax is the City’s second largest revenue source. The sales tax rate in Los Angeles County was 9.50% for FY 2024-25. Redondo Beach receives 1% of taxable sales from the California Department of Tax and Fee Administration. Until FY 2015-16, the data below included revenue from the triple flip revenue swapping procedure, whereby 25 percent of the City’s traditional sales tax base was committed to the State for deficit reduction bonds, and then reimbursed in the same amount as additional property tax revenue to the City. Beginning in FY 2016-17, the data reflects the City’s sales tax proportion only.

Sales tax increased by approximately 2% following two years of decreases after the strong FY 2022-23 post-Covid recovery. This fairly flat revenue trend, with some slightly positive forward projections, is similar to the state and region and continues to reflect consumer preference for online sales and slower consumer spending in the context of economic uncertainty and persistent inflation. Ongoing uncertainty at the South Bay Galleria site, one of the City’s major retail centers, also continues to be a factor in sales tax revenue growth. -
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Fiscal Year
Property Tax
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415 Diamond Street
Redondo Beach, CA 90277
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Fiscal year 2024-25 sales tax revenue increased by $0.2 million, or approximately 2%, over prior year receipts, going back to FY 2022-23 levels. Economic uncertainty and high inflation have continued to dampen consumer purchasing. For FY 2024-25, gains in building and construction and building and industry offset decreases in other sectors, primarily general consumer goods.

Vehicle License Fees (VLF)
Vehicle license fee revenue, the City’s third largest revenue source, comes from a State-imposed tax on owners of registered vehicles for the privilege of operating a vehicle on public highways. The revenue reflects 2% of the market value of the motor vehicle, which the City receives as motor vehicle in-lieu tax and through Property Tax receipts as property tax in lieu of vehicle license fees.

Vehicle License Fee revenue has increased consistently over the past 10 years, with an average annual increase of about 5%. Fiscal year 2024-25 revenue was $10.3 million, a 7.5% increase over the prior year.
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Transient Occupancy Tax (TOT)
Transient Occupancy Tax, the City’s fourth largest single revenue source, is imposed on shortterm occupants of hotels, motels, inns, tourist homes or other lodging facilities (those staying for 30 or fewer days). The current 12% tax rate is applied to the customer’s lodging bill. The rate was last increased in 2005 by 2%.

Through FY 2016-17, the City contributed 10% of TOT revenue to the Redondo Beach Chamber of Commerce and Visitors Bureau to support marketing and tourism in the City, offsetting the revenue received. In the following fiscal years, the City retains all TOT revenue.

TOT revenue continues to recover following the sharp decrease related to the pandemic. In FY 2024-25, TOT gross receipts remained level with the prior year, at about $9.1 million. The City retains TOT net of payments related to the City’s site-specific tax pledge with three hotel properties – according to the agreement, the City remits TOT generated from these hotels in the event hotels are unable to meet debt servicing as specified in the underlying agreement.

On a net basis, the City retained $6.9 million, approximately $0.5 million more than the prior fiscal year. The City has not yet realized the potential revenue from these sites, which at their peak contributed approximately $3 million in annual revenue. -
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Redondo Beach, CA 90277
Tel: 310.318.0683
Redondo.org

Utility Users’ Tax (UUT)
Utility users’ tax, the City’s fifth largest revenue source, is imposed on consumers of electric, gas, cable services, water and telephone services. Redondo Beach’s UUT rate is set at 4.75%.

In the last 10 years, the City’s UUT revenue has remained relatively flat as more consumers have moved away from cable to internet based streaming services which have not historically been taxed. This trend has changed in the past two fiscal years, with increases in UUT driven by general rate increases, population growth, more remote workers, inflation and natural gas prices.

Fiscal year FY 2024-25 revenue was $9.2 million, a $0.4 million or 4.2% increase over the prior year.
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415 Diamond Street
Redondo Beach, CA 90277
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Redondo.org

CAPITAL IMPROVEMENT PROJECT PLANNING, ACCOMPLISHMENTS AND ACTIVITIES In FY 2024-25, the City continued to plan, design, and construct a significant number of capital improvement projects. Street improvement projects, which have the greatest variety of funding sources, continued to represent a large portion of the work plan. However, projects in other categories were completed throughout the City as well.

The City made progress on several Regional Measure R and Measure M funded transportationrelated capital projects. Plans and Specifications for the right turn lane project located on Aviation Boulevard at Artesia Boulevard ($1.4 million) were approved, with the construction contract award anticipated in the summer of 2025. Construction for Phase 2 of the southbound right turn lane on Inglewood Avenue at Manhattan Beach Boulevard, including signalized modifications ($2.6 million), is substantially complete.

The Anita / Herondo and Pacific Coast Highway left turn modifications project ($2.5M) was completed in the spring of 2025. A construction contract for the North Redondo Beach Bikeway Extension - Felton Ln. to Inglewood Ave. Project ($2.2M) was approved in February 2025 and construction is expected to commence in the summer of 2025. The South Bay Local Travel -
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Network plans and specifications were approved in the spring of 2025 and construction is estimated to commence in mid FY 2025-26. Several other Metro-funded transportation projects are in design and will continue design work during FY 2025-26, including, but not limited to, the North Redondo Beach Bikeway Extension - Mobility Hub ($4M) and the Traffic Signal Communication Network Phase 2 ($2.6M).

The Grant Avenue Signal Improvement Project ($3.2M) and the Torrance Boulevard Resurfacing and Signal Improvement Project ($4.3M) were formally accepted as complete in the summer of 2024. The Citywide Slurry Seal Phase 4 was completed in the first half of FY 2024-25 ($475,000), and the next phase entered into design. Manhattan Beach Blvd. (MBB) Resurfacing ($4.5M) was substantially completed. The Bicycle Implementation Plan Project ($2.6M) adding

7.5 miles of bike lanes was substantially completed pending a few outstanding items. The next phase of Residential Rehabilitation ($2.9M) was awarded with construction commencing in May 2025 and the subsequent phase in design with construction anticipated in late FY 2025-

26. The Franklin Park Repair and Striping Project ($750,000) entered construction with Phase 1 (striping, shade structure, benches, pickleball court, etc.) being completed and Phase 2 (Playground) in the pre-design phase. The Alta Vista Field Improvements for the baseball field fencing ($32,000) was completed in the first half of FY 2024-25. Rubberized play surface ($136,000) replacement was completed at both Dale Page and Lilienthal Parks. A Design-Build agreement for the reconstruction of the Wilderness Park Lower Pond was awarded in January 2025 (~$420,000) with construction anticipated in FY 2025-26. A construction contract for the Southern California Edison (SCE) right of way (ROW) West of PCH Landscape Improvements ($1,100,000) was awarded with construction for Phase 1 scheduled to occur in FY 2025-26. The Dominguez Park Play Equipment, Landscape, and Walkways Project ($2 million) was completed and accepted formally in April 2025.

The City continued to devote significant resources to the maintenance and improvement of its wastewater infrastructure. Construction neared completion for the Portofino Sewer Pump Station ($5.12 million). Improvements and maintenance, including the re-lining of sewer pipes and root foaming were executed Citywide as part of the Sanitary Sewer Rehabilitation Project ($262,000).

In the waterfront, the International Boardwalk Paver Project was completed ($1.32M), adding pavers along the entire boardwalk. The Marina Parking Lot Pay Station Project ($296,800) entered construction with an anticipated completion in the Summer of 2025. The Beach Bluff Pedestrian Path Lighting Project ($150,000) was completed in late FY 2024-25. Additionally, progress was made on the design plans for reconstruction of the Seaside Lagoon ($3.1 million) and on the design of the new public boat launch ($650,000).

The above is a snapshot of the year’s highlights and is not inclusive of all of the progress made on projects included in the City’s CIP. In summary, the City formally or substantially completed 22 CIP projects in FY 2024-25 and designed and/or awarded contracts for construction of an additional 17 projects, for a total capital expenditure of approximately $23.9 million.

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CASH MANAGEMENT POLICIES AND PRACTICES
The City invests all idle cash in various investment instruments, as authorized by the City’s Statement of Investment Policy. The City Treasurer employs a buy and hold philosophy of cash management, ensuring the full return of all investment principal. In February of 2013, the City commenced use of Meeder Public Funds in providing non-discretionary investment management services to the City Treasurer. Composition of the City’s investment portfolio consists of a well-diversified mix of U.S. government securities and high-quality credit investments such as A-AAA rated medium-term corporate notes. The City’s portfolio is structured along a fiveyear laddered maturity schedule. Sufficient liquidity is maintained through investments in local government investment pools (LGIPs), which provide same-day access to invested funds.

The City maintains an Investment Policy certified for reporting excellence by the Government Investment Officers Association (GIOA) and has established both a written investment policy and investment procedures manual. The Investment Policy is reviewed by both the City Council and the Budget and Finance Commission on an annual basis.

The increase in market interest rates experienced over the past year have been both anticipated and well managed, proactively responding to both the City’s operating and capital improvement cash flow requirements. The City’s investment portfolio consistently meets the primary objectives set forth in the California Government Code and the City’s Investment Policy of safety, liquidity, and then yield.

As of June 30, 2025, the City’s general portfolio was invested as follows:

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As required by GASB 31, the City recorded the unrealized gain/loss on certain investments to account for the market value on June 30, 2025. The portfolio market value, $116,733,392, ended the fiscal year slightly below the book value, $117,260,688, by $527,296. This unrealized loss in the value of investments results from structural factors and interest rate movements within the financial marketplace over the past year impacting the market valuation of the City’s U.S.

Treasury, Federal Agency, and medium-term corporate note investments.

RISK MANAGEMENT
The City maintains a self-insurance program for workers’ compensation and liability claims.

The program accumulates resources in the Self-Insurance Program internal service fund to meet potential losses. For FY 2024-25, the self-insurance retention (SIR) was $750,000 for workers’ compensation and $500,000 for general liability. Excess coverage up to $50 million for each workers’ compensation claim is provided by a third-party private insurer, and excess liability up to $30 million for each occurrence is covered by Public Risk Innovation, Solutions, and Management (PRISM), formally the California State Association of Counties – Excess Insurance Authority (CSAC-EIA).

PRISM is a joint powers authority for 95% of California counties as well as 68% of California municipalities where risks and losses are pooled together to keep annual premiums low. Both the workers’ compensation and liability claim programs are managed by a third-party claims administrator under the direction of the Risk Management Division of the Human Resources Department.

The amounts included in the Self-Insurance Program internal service fund are significant, partly due to requirements of GASB 10. In complying with GASB 10, the City must record as a liability and expenditure not only actual risk/loss experienced in the areas of workers’ compensation and liability but also claims incurred but not reported (IBNR). IBNR claims include exposure for losses of which a city is not yet aware, as well as any statistically probable increase in costs for accidents that are already known to the City. The appropriate amount to include on the financial statements for IBNR claims is typically developed by an actuary.

As of June 30, 2025, the City recorded the following:

Workers’ Compensation Claims
Claims payable totaled $15.8 million representing an increase of approximately $1.2 million, or 8%, from the prior period. This increase is attributable to higher estimated reserve requirements and the settlement of claims in previous years.

Liability Claims
Claims payable totaled $8.7 million representing a decrease of approximately $1 million, or 10%, from the prior period. This decrease is attributable to lower estimated reserve requirements and the settlement of claims in previous years.

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Unemployment Insurance
The City participates in a direct-cost reimbursement method for unemployment insurance.

This program is administered by the State Employment Development Department (EDD) to provide salary continuance for terminated employees. For FY 2024-25, reimbursement to EDD was $23,056.

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The City provides three Tier 1 defined benefit pension plans – two for safety employees (3% at 55 for Fire and 3% at 50 for Police) and one for miscellaneous employees (2% at 55). Beginning July 2012, two additional Tier 2 defined benefit pension plans were provided – one for safety employees (3% at 55 for both Fire and Police) and one for miscellaneous employees (2% at 60).

Beginning January 2013, pursuant to the California Public Employee’s Pension Reform Act of 2013 (PEPRA), Tier 3 defined benefit pension plans were added, 2.7% at 57 for safety employees and 2% at 62 for miscellaneous employees. These plans are part of the California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. The City makes contributions to the plans based on amounts determined by CalPERS actuaries. Employees of some bargaining groups paid a portion of the employee and/or employer contribution to CalPERS.

CalPERS began to separately identify the City’s employer contributions as normal cost and unfunded liability FY 2017-18. The City pays the normal cost portion – ongoing contribution reflecting the amount estimated to fully fund future benefits under investment and plan assumptions - as a percentage of payroll. The required unfunded liability portion – the amount that the City must contribute to cover the gap between the value of the City’s invested assets and estimated amount required to fund future benefits – is presented as a flat dollar amount. In FY 2024-25, the percentage-based portion of the rate decreased from 10.34% to 10.31% for the miscellaneous group and from 23.34% to 23.28% for public safety. The City paid $3.25 million in required unfunded liability payment following no required payment in FY 2023-24 due to a 2021-22 payoff of the City’s unfunded liability.

Pension benefit payments for employer contributions and member contributions that the City pays was $8.0 million, of which approximately 84.5% was charged to the General Fund.

Aside from contributing to CalPERS, the City also contributes to Social Security. The Fiscal Year 2024-25 total cost for Social Security and Medicare coverage was $2.8 million, of which $2.0. million, or 71.4%, is from the General Fund. Safety employees do not participate in Social Security and Medicare, except for those employees hired after 1986, who are required to participate in Medicare.

The City also provides post-retirement health care benefits to its employees in accordance with agreements reached with various employee bargaining groups. The City pays for retirees’ health care premiums in these plans up to limits established in the agreements with the bargaining units. After age 64, only the City’s minimum health premium contribution under the Public Employees’ Medical and Hospital Care Act (PEHMCA) is paid. These payments are paid DRAFT
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Financial Services Department
415 Diamond Street
Redondo Beach, CA 90277
Tel: 310.318.0683
Redondo.org
via an Other Post-Employment Benefits (OPEB) trust, which was established by the City in FY 2009-2010 to comply with GASB 45. The OPEB trust allows the City to prefund actuarially derived OPEB costs that are expected to be incurred in future periods. In Fiscal Year 2024-25, the City contributed $2.2 million to the OPEB trust to cover current and future retiree medical benefits; however, future contributions may vary based on future actuarial studies. As of June 30, 2025, the City was providing benefits to 154 participants.

AWARDS
The City has applied for the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting to the City of Redondo Beach for its Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2024, the award is under consideration and pending a final review. The City has received the award in 31 consecutive years. To be awarded this certificate, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

For FY 2024-25, the City will again apply to the GFOA for the Certificate of Achievement for Excellence in Financial Reporting. We believe that our current annual comprehensive financial report continues to meet and exceed the criteria to receive this certificate, and we will be submitting it to GFOA for consideration.

ACKNOWLEDGMENTS
The preparation of this report has been accomplished with the efficient and dedicated services of staff in the Financial Services Department, particularly Assistant Finance Director Amy Wu, and Senior Accountants Grace Liang and Alfonso Paez. We also thank the City’s independent auditors, CliftonLarsonAllen (CLA), Certified Public Accountants, for their assistance and expertise, and all of the City departments for their cooperation during the audit engagement and their participation in preparing the required data. We would like to express our appreciation to the Mayor and City Council, the City’s Audit Committee, and the Budget and Finance Commission for continuing to review the City’s financial affairs in an engaged and responsible manner.

Respectfully submitted,
____________________

MIKE WITZANSKY
City Manager
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Other Elected Officials
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(1)

FINANCIAL SECTION
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(2)
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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, as listed in the table of contents.

In our opinion, the financial 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, 2025, 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 and the implementation of an accounting standard. Our opinions are not modified with respect to these matters.

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Honorable Mayor and Members of the City Council
City of Redondo Beach
(3)
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.

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Honorable Mayor and Members of the City Council
City of Redondo Beach
(4)
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.

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Honorable Mayor and Members of the City Council
City of Redondo Beach
(5)
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
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CITY OF REDONDO BEACH
MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the Annual Comprehensive Financial Report of the City of Redondo Beach (the City) presents a narrative overview and analysis of the City’s financial activities of for the fiscal year ended June 30, 2025. We encourage readers to consider this information in conjunction with the additional information that is furnished in the letter of transmittal at the front of this report, and with the Basic Financial statements and accompany notes which follow this section. We hope that the information and the discussion will provide readers with a clear picture of the City’s overall financial condition.

Financial Highlights - Primary Government
• Government-Wide Highlights
Net Position - Assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at fiscal year ending June 30, 2025, by $113.9 million. Assets and deferred outflows for governmental activities exceeded liabilities and deferred inflows by $31.4 million and assets and deferred outflows for business-type activities exceeded liabilities and deferred inflows by $82.4 million.

Changes in Net Position - The City’s net position increased $3.4 million in fiscal year 2024-2025.

Net position of governmental activities increased $0.3 million and net position of business-type activities increased $1.6 million.
• Fund Highlights
Governmental Funds - At the close of fiscal year 2024-2025, the City’s total governmental funds reported a fund balance of $57.5 million, a decrease of $14.0 million from the prior year. Highlighted below are this year’s major funds included in this grouping.

General Fund - The fund balance of the General Fund (including Special Revenue–CalPERS Reserve Fund, with a balance of $7,975,721) on June 30, 2025, was $26.1 million, an decrease of $10.1 million from the prior year.

Special Revenue - Other Intergovernmental Grants Fund – The fund balance of the Special Revenue – Other Intergovernmental Grants Fund on June 30, 2025, was negative $6.9 million, a decrease to the negative fund balance by $0.5 million from the prior year.

Special Revenue - Low-Mod Income Housing Fund - The fund balance of the Special Revenue - Low-Mod Income Housing Fund on June 30, 2025, was $2.7 million, a decrease of $0.5 million from the prior year.

OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements.

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Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business. They are comprised of the following:
• Statement of Net Position
The Statement of Net Position presents summarized information of all the City’s assets and deferred out flows of resources, and liabilities and deferred inflows of resources, with the difference between the two groups reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. This financial statement combines and consolidates governmental funds’ current financial resources with capital assets and long-term obligations. • Statement of Activities
The Statement of Activities presents information showing how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused compensated absences, and incurred but unpaid workers’ compensation claims).

Government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).

The governmental activities of the City include general government, public safety, public works, cultural and leisure services and housing and community development. Business type activities include operations of the harbor, sewer (wastewater), solid waste, and transit.

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

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

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: Governmental funds, proprietary funds, and fiduciary funds.

The fund financial statements provide detail information about each of the City’s most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement No. 34 (GASB 34) and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, while all Non-Major Funds are summarized and presented in a single column.

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• Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements.

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

The City has 30 governmental funds, of which three are considered major funds for presentation purposes. Each major fund is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances.

The City’s three major funds are: the General Fund, the Other Intergovernmental Grants Special Revenue Fund, and the Low-Mod Income Housing Special Revenue Fund. Data from the nonmajor governmental funds (e.g., State Gas Tax Fund, Proposition A Fund, Storm Drain Fund, Disaster Recovery Fund…) are combined into a single aggregated presentation. The governmental funds financial statements can be found on pages behind the tab section titled Fund Financial Statements. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements on pages in the Supplementary Information section behind the tab section titled Non-Major Governmental Funds.
• Proprietary Funds
The City maintains two types of proprietary funds: enterprise funds and internal service funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Enterprise funds are used to account for harbor activities, solid waste (i.e., collection, recycling and hazardous waste disposal), operations and maintenance of City sewers, and transit activities. Internal service funds are used to accumulate and account for the City’s vehicles, building maintenance and repair, major facilities repair, information technology, emergency communications, and insurance. Because internal services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds’ financial statements provide the same type of information as the governmentwide financial statements, only in more detail. Like the government-wide financial statements, proprietary funds’ financial statements use the accrual basis of accounting. Separate financial statements are provided for the City’s three major enterprise funds: Harbor Uplands, Harbor Tidelands, and Wastewater. Data from the nonmajor enterprise funds, the Solid Waste and Transit Funds, are combined into a single aggregated presentation. The internal service funds are also combined into a single, aggregated presentation in the proprietary funds’ financial statements.

Individual fund data for each internal service fund is provided in the form of combining statements on pages in the Supplementary Information section behind the tab section titled Internal Service Funds.

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Statements.
• Fiduciary Funds
Fiduciary (Custodial and Private-Purpose Trust Fund) funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support City programs.

Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found behind the tab section titled Notes to the Financial Statements.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. The required supplementary information includes disclosure of the modified approach for the city pavement infrastructure and budgetary, pension plan information, and other post-employment benefit (OPEB) information. This information can be found behind the tab section titled Required Supplementary Information.
2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Current and Other Assets $ 117,625,517 $ 129,870,104 $ 95,087,449 $ 100,068,124 $ 212,712,966 $ 229,938,228 Capital Assets, Net
Depreciation 199,963,002 192,190,879 79,846,082 77,380,311 279,809,084 269,571,190 Total Assets 317,588,519 322,060,983 174,933,531 177,448,435 492,522,050 499,509,418 Deferred Outflows of
Resources 33,507,244 50,203,767 3,969,177 5,890,968 37,476,421 56,094,735 Long-Term Liabilities
Outstanding 278,971,532 289,903,963 25,469,761 26,866,223 304,441,293 316,770,186 Current and Other Liabilities 32,674,269 29,241,941 3,319,657 5,297,679 35,993,926 34,539,620 Total Liabilities 311,645,801 319,145,904 28,789,418 32,163,902 340,435,219 351,309,806 Deferred Inflows of Resources 8,031,688 10,637,846 67,677,322 68,899,229 75,709,010 79,537,075 Net Investment in Capital
Assets 195,052,987 188,122,322 74,641,943 71,887,538 269,694,930 260,009,860 Restricted 25,332,900 30,222,338 - - 25,332,900 30,222,338 Unrestricted (188,967,613) (175,863,660) 7,794,055 10,388,734 (181,173,558) (165,474,926) Total Net Position $ 31,418,274 $ 42,481,000 $ $ 82,276,272 82,435,998 $ 113,854,272 $ 124,757,272 City of Redondo Beach's Change in Net Position
Fiscal Year Ended June 30, 2025
Governmental Activities Business-Type Activities Total
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Net Position
The chart above reflects the City’s combined net position (governmental and business-type activities) of $113.9 million at the close of fiscal year ending June 30, 2025.

The largest portion of the City’s total net position (2236.9%) reflects investment in capital assets (e.g., land, streets, sewers, buildings, machinery, equipment and intangible leased assets and subscriptions) net of outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The remaining City net position represents resources that are either subject to external restrictions (e.g., certain capital projects, debt service) or unrestricted. The unrestricted net position is negative primarily as a result of pension and other post-employment benefits (OPEB) related reporting.

Changes in Net Position
Also noted in the chart on the following page, the City’s Fiscal Year 2024-2025 total net position increased by $1.9 million (including restatements of ($12.9 million)), or 1.6%, from the prior year. The governmental activities net position increased $0.4 million (including restatements of ($11.4 million)), or 0.9%, and business-type activities net position increased $1.6 million (including restatements of $1.4 million), or 1.5%.

Within total assets, capital assets, net of accumulated depreciation, increased by $10.2million or -3.8%.

This increase in capital assets also resulted in an increase in Net Investments in Capital Assets of $9.7 million, or 3.7%. The increase in net position is due to these capital asset increases and a decrease in deferred inflows of resources related to pensions and Unfunded Accrued Liability of $2.8 million.

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Revenues: 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Program revenues:

Charges for services $ 31,605,086 $ 25,964,377 $ 29,196,541 $ 28,905,429 $ 60,801,627 $ 54,869,806 Operating grants and contributions 16,450,153 15,605,821 2,761,419 3,382,921 19,211,572 18,988,742 Capital grants and contributions 6,278,915 8,351,492 - - 6,278,915 8,351,492 Total program revenues 54,334,154 49,921,690 31,957,960 32,288,350 86,292,114 82,210,040 General revenues:

Property taxes 50,946,477 48,021,316 - - 50,946,477 48,021,316 Transient occupancy taxes 9,122,741 9,114,545 - - 9,122,741 9,114,545 Sales taxes 11,043,781 10,822,480 - - 11,043,781 10,822,480 Franchise taxes 1,529,446 1,964,410 - - 1,529,446 1,964,410 Business license taxes 1,215,932 1,266,051 - - 1,215,932 1,266,051 Utility users' taxes 8,840,537 8,481,267 - - 8,840,537 8,481,267 Other taxes 1,168,783 1,118,398 - - 1,168,783 1,118,398 Motor vehicle in-lieu - unrestricted 110,718 86,764 - - 110,718 86,764 Use of money and property 6,466,937 6,575,739 2,488,918 2,427,116 8,955,855 9,002,855 Other - - - - -
Gain on sale of capital asset 47,910 115,613 47,910
Total general revenues 90,493,262 87,566,583 2,488,918 2,427,116 92,982,180 89,993,699 Total revenue 144,827,416 137,488,273 34,446,878 34,715,466 179,274,294 172,203,739 Expenses:

General government 18,221,312 8,920,293 - - 18,221,312 8,920,293 Public safety 70,024,156 76,577,489 - - 70,024,156 76,577,489 Housing and community development 15,633,339 15,558,950 - - 15,633,339 15,558,950 Cultural and leisure services 12,431,744 12,428,392 - - 12,431,744 12,428,392 Public works 21,201,707 17,338,480 - - 21,201,707 17,338,480 Interest on long-term debt 5,665,240 6,373,477 - - 5,665,240 6,373,477 Harbor Tidelands - 9,291,961 12,448,283 9,291,961 12,448,283 Harbor Uplands - - 7,711,582 7,325,917 7,711,582 7,325,917 Wastewater - - 4,409,338 4,081,219 4,409,338 4,081,219
Solid Waste - - 6,816,484 6,632,516 6,816,484 6,632,516 Transit - - 5,906,750 5,967,261 5,906,750 5,967,261
Total expenses 143,177,498 137,197,081 34,136,115 36,455,196 177,313,613 173,652,277 Change in net position before special item and
transfers 1,649,918 291,192 310,763 (1,739,730) 1,960,681 (1,448,538) Transfers (1,266,668) (487,401) 1,266,668 487,401 - -
Change in net position 383,250 (196,209) 1,577,431 (1,252,329) 1,960,681 (1,448,538) Net position, beginning of year, restated 31,035,024 42,677,209 80,858,567 83,528,604 111,893,591 126,205,813 Net position, end of year $ 31,418,274 $ 42,481,000 $ 82,435,998 $ 82,276,275 $ 113,854,272 $ 124,757,275 Governmental Activities Business-Type Activities Total
City of Redondo Beach's Change in Net Position
Fiscal Year Ended June 30, 2025

Levels of revenues and expenditures also impact current assets and other liabilities and, therefore, cause changes in net position. As reflected above, total revenues increased in fiscal year 2024-2025 by $7.1 million, or 4.1%. Increases in program revenues are primarily reflected in capital grants and contributions.

General revenue increased overall as a result of higher property tax revenue and higher interest earnings.

Citywide total expenses increased by $3.7 million, or 2.1%, compared to fiscal year 2024-2025. The increase in expenses was primarily related to higher citywide personnel costs and operating expenses related to administration and general services, as well as adjustments in the beginning net position resulted from the implementation of GASB 101 and corrections of errors identified in previously issued financial statements.

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Governmental Activities
As reflected in the Changes in Net Position schedule on the previous page, the total governmental activity expenses were $143.2 million in fiscal year 2024-2025; and total revenues from governmental activities were $144.8 million, of which 37.5% were derived from program revenues primarily consisting of charges for services and grants.

As shown on the following chart, the governmental activity expenses net of program revenues, increased $1.6 million, or 1.8%, in fiscal year 2024-2025. As with the increase in citywide total expenses, the increase reflects higher expenditures for personnel costs, pension-related items and capital improvement projects.

In addition to these general factors impacting all categories, the shift in General Government reflects the removal of internal revenue from the program revenues calculations, while Housing and Community Development changes reflect an increase in housing voucher spending and decrease in plan check revenue reflecting lower building and development activity in fiscal year 2024-25.

Percent
Impact to Net Assets Increase
Governmental Activites 2024-2025 2023-2024 (Decrease)

Expenditures Net of Program Revenues*
General Government $ (12,926,522) $ (6,652,221) 94.3%
Public Safety (61,229,257) (69,106,590) -11.4%
Housing and Community Development (10,446,217) (10,416,113) 0.3% Cultural and Leisure Services 8,474,640 9,099,626 -6.9% Public Works (7,050,748) (3,826,616) 84.3%
Interest on Long-Term Debt (5,665,240) (6,373,477) -11.1%

Total Governmental Activity Expenditures Net of Program Revenues (88,843,344) (87,275,391) 1.8%
*Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry. They reduce the net cost of the function to be financed from the government’s general revenues.

The chart below is a graphical representation of the schedule above.

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(12) (8) (4) - 4 8 12
General Government
Public Safety
Public Works
Cultural and leisure services
Housing and community services
Interest on long-term debt
Dollars in Millions

EXPENDITURES NET OF PROGRAM REVENUES
Fiscal Year 2024-2025 Fiscal Year 2023-2024
General Revenues Related to Governmental Activities
General Revenues 2024-2025 2023-2024
Taxes $ 83,867,697 $ 80,788,467 3.8%
Use of Money and Property 6,466,937 6,575,739 -1.7%
Other Revenues 158,628 202,377 -21.6%
Total General Revenues $ 90,493,262 $ 87,566,583 3.3%
Increase/
(Decrease)
General revenues are all other revenues not attributable to a specific program and, therefore, not categorized as program revenues. These revenues include taxes, use of money and property, and other revenues and increased 3.3% over the prior year, mainly due to the increase in motor vehicle-in-lie revenue.

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Taxes

92.7%
Use of Money and Property

7.1%
Other Revenues

0.2%
2024-2025

GENERAL REVENUES
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Business-Type Activities
The City has five business-type activities: Harbor Tidelands, Harbor Uplands, Solid Waste, Wastewater, and Transit. The total net position of the business-type activities increased by $0.2 million from the prior year.

Harbor Tidelands is used for the operations of small boat harbor facilities available to the general public, including related pier activities. This fund is restricted under the City Tidelands Trust Agreement with the State of California. In fiscal year 2024-2025, the total net position of the Harbor Tidelands increased by $0.2 million from the prior year.

Harbor Uplands is also used for the operations of small boat harbor facilities available to the general public, including related pier activities. However, the use of these funds is subject only to the decisions of the City Council. In fiscal year 2024-2025, the total net position of Harbor Uplands decreased by $1.3 million from the prior year.

Wastewater is funded by a capital facility charge, more commonly referred to as a sewer user fee. These funds are used to support the City's sewer infrastructure operations and improvements. In fiscal year 2024- 2025, the total net position of Wastewater increased $2.0 million from the prior year.

Solid Waste is the City’s comprehensive solid waste program, which includes refuse collection, recycling, and hazardous waste disposal services. The solid waste program is supported through user service fees.

In fiscal year FY 2023-2024, the total net position of Solid Waste increased $0.4 million from the prior year.

Transit operations provide transportation services mainly to the cities of Redondo Beach, Hermosa Beach, and Manhattan Beach. The transit system is supported through bus passes, passenger fares, Transportation Development Act Article 4 funding, and Propositions A and C discretionary funding. In fiscal year 2024-2025, the total net position of Transit decreased $1.1 million from the prior year.

FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Please note that unlike the Government-Wide financial statements displayed previously, the fund financial statements which follow are not reflected on a full accrual basis. Therefore, amounts reflected in the fund financial statements versus the Government-Wide statements may differ due to this change in accounting methodology.

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Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial requirements.

In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Governmental Funds - The following schedule is a summary of governmental fund revenues for fiscal year ended June 30, 2025, and includes Major and Non-Major Funds. It reflects the amount and percent of increase or decrease of each source of revenue compared to the prior year.

Source of Revenue
Percent
of Total
FY 24-25
Amount
FY 23-24
Amount
Increase
(Decrease)
Over FY 23-24
Percent
Increase
(Decrease)
Taxes 58.2% $ 83,784,790 $ 80,788,467 $ 2,996,323 3.7%
Licenses and Permits 2.4% 3,509,054 2,386,229 1,122,825 47.1% Intergovernmental 20.1% 28,896,244 30,801,108 (1,904,864) -6.2% Charges for Services 8.4% 12,163,344 12,003,162 160,182 1.3% Use of Money and Property 4.6% 6,597,099 6,528,355 68,744 1.1% Fines and Forfeitures 1.2% 1,726,262 1,302,666 423,596 32.5% Miscellaneous 5.1% 7,276,994 4,099,103 3,177,891 77.5%
Total 100.0% $ 143,953,787 $ 137,909,090 $ 6,044,697 4.4% Taxes

58.2%
Licenses and Permits

2.4%
Intergovernmental

20.1%
Charges for Services

8.4%
Use of Money and
Property

4.6%
Fines and Forfeitures

1.2% Miscellaneous

5.1%
Governmental Funds Source of Revenue
Fiscal Year 2024-2025
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Total governmental fund revenues increased $6 million, or 4.4%, from fiscal year 2023-2024. Licenses and permits increased $1.1 million, or 47.1%, primary due to the increase in building permit fees Fines and forfeitures increased $0.4 million, or $32.5%, primary due to the increase parking citations. Miscellaneous revenue increased $3.2 million, or 77.5%. The increase was primarily due to a $2.3million increase in interdepartmental overhead revenue
The following schedule is a summary of governmental fund expenditures by function for fiscal year ended June 30, 2025, and includes both Major and Non-Major Funds. It reflects the amount and percent of increase or decrease for each functional category of expenditures compared to the prior year.

Expenditures
FY 24-25
Amount
Percent
of Total
FY 23-24
Amount
Increase
(Decrease)
From Prior
Year
Percent
Increase
(Decrease)
Current:

General Government $ 18,884,014 12.6% $ 9,734,103 $ 9,149,911 94.0% Public Safety 60,605,142 40.4% 55,693,349 4,911,793 8.8% Housing and Comm. Dev. 15,614,599 10.4% 12,777,662 2,836,937 22.2% Cultural and Leisure 11,710,649 7.8% 11,359,717 350,932 3.1% Public Works 15,879,237 10.6% 11,319,451 4,559,786 40.3% Total Current Expenditures 122,693,641 81.7% - 100,884,282 21,809,359 21.6% Capital Outlay 13,737,714 9.1% 19,465,587 (5,727,873) -29.4% Debt Service: 13,744,406 9.2% 13,786,233 (41,827) -0.3% Total $ 150,175,761 100.0% $ 134,136,102 $ 16,039,659 12.0% DRAFT
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General
Government

12.6%
Public Safety

40.4%
Housing and
Comm. Dev.

10.4%
Cultural and
Leisure

7.8%
Public Works

10.6%
Capital Outlay

9.1%
Debt Service:

9.2%
Governmental Funds Expenditures by Category
Fiscal Year 2024-2025
Total governmental fund expenditures increased $16.0 million, or 12.0%, from fiscal year 2023-2024. As mentioned earlier, the variances are attributable to:
• Current expenditures decreased by $21.0 million, or 21.6%, due to higher personnel costs. • Capital outlay expenditures decreased by $5.7 million, or -29.4%, reflecting the fluctuating nature of capital improvement project expenses.

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

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$50
$60
$70
$80
$90
$100
$110
$120
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Dollars in Millions
Fiscal Year End
Revenues Expenditures
When compared to fiscal year 2023-2024, fiscal year 2024-2025 General Fund revenues increased by $7.6 million, or 7.4%, while expenditures also decreased $14.9 million, or 17.2%. The increase in General Fund revenues was primarily due to the increases in revenues from building permits fees, parking citations, interdepartmental overheads, and revenue associated with homeless servicerelated programs. The increase in General Fund expenditures was mainly due to the increases in personnel costs, contracts/professional services, attorney fees, emergency operations, overhead costs, and a $2.8 unfunded accrued pension liability payment, partially offset by the decreas DRAFT
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553
General Fund Balance
The fund balance of the General Fund as of June 30, 2025 was $26.1 million, a decrease of $10.1 million or -28.1%, when compared to the prior year. The City Council approved the constraints of the General Fund balance reflected below.

FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025
General Fund Contingency $ 8,599,208 $ 8,599,208 $ 8,599,208 $ 8,599,208 Compensated Absences 785,832 785,832 785,832 838,736
Carryover Assignments 1,845,807 4,732,775 6,374,435 2,080,025 Capital Projects - - - -
Encumbrances 1,270,389 2,029,853 2,130,355 1,016,725
Petty Cash 12,800 12,800 10,450 8,450
CalPERS 7,975,721 7,975,721 7,975,721 7,975,721
Future Year's Appropriations 8,531,279 8,691,279 8,691,279 - Unassigned Balance 276,536 190,951 1,531,260 5,363,677
As part of year-end activities, the City Council reviews the General Fund balance and determines how the City should commit/assign the unrestricted portion. As illustrated above, Council constraints of General Fund balance over the past several years reflect the City’s Strategic Plan. Aside from policy-designated amounts (i.e., General Fund Contingency and Compensated Absences), much of the money is committed or assigned to accomplish strategic goals.

Other Intergovernmental Grants Fund Balance
The fund balance of the Other Intergovernmental Grants Fund as of June 30, 2025 was negative $6.9 million, a decrease to the negative fund balance of $0.5 million, when compared to the prior year. Revenues and expenditures of the fund, where monies from Federal, State and other governmental agencies are used primarily for capital improvement projects, tend to fluctuate from year to year depending on resources received from other governmental agencies.

Low-Mod Income Housing Fund Balance
The fund balance of the Low-Mod Income Housing Fund as of June 30, 2025 was $2.7 million, a decrease of $0.5 million, when compared to the prior year. Housing assets transferred from the dissolved Redevelopment Agency and funds generated from those assets are used to assist with housing needs for low- and moderate- income individuals.

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GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended fiscal year 2024-2025 budget totaled $113.0 million, including net amendments to the originally adopted budget and excluding transfers out of $22.0 million. The City Council adopts budget adjustments during the year to reflect both changed priorities and consideration of events that took place subsequent to the budget adoption. The amendments can be briefly summarized as follows:
• Funding of prior-year encumbrances of $1,016,725.
• Funding of carry-over appropriations of $2,080,025.
• Increased mid-year appropriations by $ 2,648,795.

Budget amendments were funded from/credited to available fund balance. The City ended the year with approximately $3.8 million greater revenue than budgeted, and approximately $2.5 million in expenditure savings, primarily due to contractual services that were not completed by year-end. Including transfers, where the City spent in excess of its budget due to transfers between the City and Community Financing Authority fund, the General Fund ended the year approximately $3.35 million favorably compared to budget.

This included planned budgeting for one-time expenditures, shown in Transfers Out, that resulted in spending down the City’s available General Fund balance. ,

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
Capital assets of the City, including infrastructure assets are those assets used in the performance of the City’s functions. At June 30, 2025, net capital assets of the governmental and business-type activities totaled $200.0 million and $79.8 million, respectively. Depreciation on capital assets is recognized in the Government-Wide financial statements.

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

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Prior to fiscal year 2008-2009, the City’s PQI rating, an amalgam of the PCR and the International Roughness Index (IRI) established by the World Bank, was based on a 10.0 scale. In fiscal year 2008- 2009, the PQI rating was converted to a 100 point scale to make it comparable to alternative pavement rating methods. In fiscal year 2017-2018, the City moved to the PCI rating, an alternate paving rating method, which is most frequently used by adjacent cities for an easier comparison. In line with the Capital Improvement Program and as presented to the City Council on January 16, 2018, City policy is to achieve an average PCI rating of 75 for all streets beginning in fiscal year 2028. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at posted speeds. As of June 30, 2025, the City’s street system was rated at a PCI of 61.

The City’s budget for street maintenance for the fiscal year ended June 30, 2025 was $30.6 million. Actual expenditures were $7.0 million, with the remaining budget carried forward as continuing appropriations.

The City is judiciously investing in this infrastructure asset as part of the five-year Capital Improvement Program and will continue to rehabilitate and maintain its streets in order to achieve this goal. The estimated expenditures required to maintain and improve the overall condition of the streets from July 1, 2025 through June 30, 2026 is a minimum of $5.8 million.

More information on the modified approach for City streets infrastructure capital assets is behind the tab section titled Required Supplementary Information.

Capital Assets 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Land $ 19,079,909 $ 19,079,909 $ 20,773,255 $ 20,773,255 $ 39,853,164 $ 39,853,164 Construction in Progress 31,368,861 20,602,793 16,211,806 10,903,336 47,580,667 31,506,129 Building and Improvements 45,113,317 46,833,340 23,978,789 25,216,840 69,092,106 72,050,180 Furniture and Equipment 4,212,809 3,095,615 129,050 118,839 4,341,859 3,214,454 Automotive Equipment 6,599,310 6,911,804 568,008 1,800,984 7,167,318 8,712,788 Right-to-use buildings 1,544,612 1,946,519 1,544,612 1,946,519 Right-to-use subcriptions 1,312,748 1,439,393 - - 1,312,748 1,439,393 Infrastructure 90,731,436 92,281,506 18,185,174 18,567,057 108,916,610 110,848,563 Total $ 199,963,002 $ 192,190,879 $ 79,846,082 $ 77,380,311 $ 279,809,084 $ 269,571,190 Govermental Activities Business-Type Activities Total
For more information on the City’s capital assets, refer to Note 8 of the Notes to Financial Statements.

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Debt Administration
Debt service funds are used to account for the accumulation of resources for payment of interest and principal on bonds issued by the City. The ratios of net bonded debt to assessed valuation and the amount of bonded debt per capita for the fiscal years 2023 -2024 and 2024-2025 are provided below. These indicators provide important information for management and concerned citizens, as well as potential investors.

Net Direct FY 23-24 FY 24-25 FY 23-24 FY 24-25 FY 23-24 FY 24-25 Bonded Debt $ 21,628,721,091 $ 22,800,511,531 1.34% 1.00% $ 3,737.46 Amount Ratio of Debt to Assessed
Value of Property Debt per Capita
When compared to fiscal year 2023-2024, fiscal year 2024-2025 governmental liabilities decreased by $8.2 million, or -4%, and business-type activities decreased by $1.0 million, or -5%. Total citywide long-term liabilities were $234.2 million, a decrease of $9.4 million or -4% from fiscal year 2023-2024. The decrease was primary due to a $7.6 million decrease of CFA Series 2019A and 2021A lease revenue refunding bonds.

Oustanding Bonds 2024-2025 2023-2024 2024-2025 2023-2024 2024-2025 2023-2024 Refunding Revenue Bonds $ 210,734,279 $ 218,318,093 $ - $ - $ 210,734,279 $ 218,318,093 Leases 1,517,684 1,911,576 - - 1,517,684 1,911,576
Subscriptions 970,901 1,173,533 - - 970,901 1,173,533
Wastewater Revenue Bonds 4,276,304 4,657,560 4,276,304 4,657,560 Lease Revenue Bonds 16,868,077 17,499,361 16,868,077 17,499,361 Total Long Term liabilities $ 213,222,864 $ 221,403,202 $ 21,144,381 $ 22,156,921 $ 234,367,245 $ 243,560,123 Current portion of Long Term
Liabilities (due within one year) 8,526,776 8,386,583 1,012,916 986,284 9,539,692 9,372,867 Long Term Liabilities -Non Current 204,696,088 213,016,619 20,131,465 21,170,637 224,827,553 234,187,256 Govermental Activities Business-Type Activities Total
For the details regarding components of the City’s long-term financings, refer to Note 10 of the Notes to Financial Statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
In considering Fiscal Year 2025-2026 the local economy continues to be impacted by high interest rates and economic uncertainty.
• Only impacted by possible payment delinquencies, property tax revenue for fiscal year 2025- 2026 is projected to increase by $1.1 million, or 2%, to $38.1 million, million. Additionally, property tax in Lieu of Vehicle License Fees is estimated to increase by a combined 3% with Property Transfer Tax projected to stay flat. The total property related tax increment for the FY2025-26 is roughly $1.1 million. Redondo Beach's housing market has remained fairly stable DRAFT
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due to its coastal location. Property tax revenue is the City’s primary source of operating revenue.
• The City projects Sales and Use Tax revenue to increase by $414,000 or 4% to $11.4 million, based on the City’s tax consultant recommendations.

The FY 2025-26 Budget anticipates Utility Users’ Tax (UUT) revenue to increase by approximately $0.5 million compared to the prior year. This estimate is based upon analysis of the projected performance from each of the categorical components of the City’s UUT tax base, including electricity, natural gas, telecommunications, water, and cable television. UUT revenue provides support for essential City operational services.
• Transient Occupancy Tax (TOT) revenue is projected to increase by $1.5 million or 10.8% to $9.2 million, based on anticipated additional revenue from the City’s three hotel properties that are party to a site-specific tax agreement pledging generated TOT to a reserve fund under certain conditions. However, the projection is roughly $2.0 million below the City’s full potential if travel and tourism forecasts were more positive and the Legado Hotel project was complete and operational.

General Fund appropriations for fiscal year 2025-2026 are projected at $115.0 million, excluding transfers; or $130.4million, including $15.4 million in transfers out. Personnel costs in the General Fund increased by $4.9 million, or 8.0%. The FY 2025-26 proposed personnel amounts reflect the impact of memoranda of understanding (MOU) increases approved in FY 2024-25.

During fiscal year 2025-2026, Redondo Beach experienced a 5.44% growth in real property assessed valuations, compared to the 2024-2025 increase of 6.5%. Transient occupancy tax saw a 11% revenue increase, and sales tax saw an 4% decrease, and ranked 60 of 89 in Los Angeles County cities in yearover-year percent change in total taxable retail sales. The unemployment rate for Redondo Beach in 2025 was 5.1%, a slight increase over 2024 (5.0%), but belowa pandemic-high peak of 10.1% in 2020. It is also below the Los Angeles County and the State of California 2026 unemployment rates of 5.6% and 5.5%, respectively, according to the California State Economic Development Department.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
The financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the Financial Services Department at 415 Diamond Street, Redondo Beach CA 90277, phone 310-318-0683, or e-mail [email protected].

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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF REDONDO BEACH

STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(26)
Primary Government
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and Investments $ 87,638,057 $ 24,446,071 $ 112,084,128 Receivables:

Accounts 1,422,828 1,166,148 2,588,976
Taxes 5,445,253 214,090 5,659,343
Accrued Interest 424,951 408,406 833,357
Notes and Loans 2,215,804 2,215,804 -
Leases 5,358,840 69,583,856 74,942,696
Internal Balances 1,341,533 (1,341,533) -
Prepaid Costs 180,123 326,624 506,747
Due from Other Governments 10,990,868 99,192 11,090,060 Advances to Successor Agency 535,731 - 535,731
Restricted Assets:

Cash with Fiscal Agent 55,492 832 56,324
Deposits Receivable 2,016,930 315,124 2,332,054
Capital Assets, Not Being Depreciated 104,502,806 36,985,061 141,487,867 Capital Assets, Net of Depreciation 95,460,196 42,861,021 138,321,217 Total Assets 317,589,412 175,064,892 492,654,304

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - 231,370 231,370
Deferred Pension Related Items 30,332,757 3,371,378 33,704,135 Deferred OPEB Related Items 3,174,487 366,429 3,540,916 Total Deferred Outflows of Resources 33,507,244 3,969,177 37,476,421 DRAFT
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CITY OF REDONDO BEACH

STATEMENT OF NET POSITION (CONTINUED)
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(27)
Primary Government
Governmental Business-Type
Activities Activities Total

LIABILITIES
Current Liabilities:

Accounts Payable $ 6,648,824 $ 1,512,987 $ 8,161,811
Accrued Liabilities 6,809,724 6,809,724 -
Accrued Interest 556,120 103,178 659,298
Unearned Revenue 2,727,496 1,067 2,728,563
Deposits Payable 4,228,681 492,640 4,721,321
Due to Other Governments - - -
Pollution Remediation Liability - - -
Compensated Absences Due in One Year 2,129,124 196,869 2,325,993 Claims Payable Due in One Year 1,047,534 1,047,534 -
Long-Term Obligations Due in One Year 8,526,767 1,012,916 9,539,683 Total Current Liabilities 32,674,270 3,319,657 35,993,927 Noncurrent Liabilities:

Compensated Absences Due in More than One Year 6,298,951 688,078 6,987,029 Claims Payable Due in More than One Year 23,565,277 23,565,277 - Long-Term Obligations Due in More than One Year 204,697,051 20,133,202 224,830,253 Net Pension Liability 32,977,043 3,328,615 36,305,658
Net OPEB Liability 11,434,163 1,319,836 12,753,999
Total Noncurrent Liabilities 278,972,485 25,469,731 304,442,216 Total Liabilities 311,646,755 28,789,388 340,436,143

DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 537,967 75,503 613,470
Deferred OPEB Related Items 2,275,766 262,691 2,538,457 Deferred Leases Related Items 5,217,955 67,470,489 72,688,444 Total Deferred Inflows of Resources 8,031,688 67,808,683 75,840,371

NET POSITION
Net Investment in Capital Assets 195,870,688 74,641,943 270,512,631 Restricted for:

Housing and Community Development 9,497,588 9,497,588 - Public Safety 589,979 - 589,979
Public Works 9,700,517 9,700,517 -
Debt Service 1,217,812 1,217,812 -
Low and Moderate Income Housing 4,327,004 4,327,004 -
Unrestricted (189,785,375) 7,794,055 (181,991,320)
Total Net Position $ 31,418,213 $ 82,435,998 $ 113,854,211 DRAFT
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CITY OF REDONDO BEACH

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(28)
Program Revenues
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions

PRIMARY GOVERNMENT
Governmental Activities:

General Government $ 18,215,942 $ 5,294,790 $ - $ -
Public Safety 70,023,263 7,506,303 1,288,596 -
Housing and Community Development 15,633,339 5,187,122 - - Cultural and Leisure Services 12,431,744 10,284,419 10,621,965 - Public Works 21,201,707 3,332,452 4,539,592 6,278,915
Interest on Long-Term Debt and
Fiscal Charges 5,671,562 - - -
Total Governmental Activities 143,177,557 31,605,086 16,450,153 6,278,915 Business-Type Activities:

Harbor Tidelands 9,291,961 8,799,271 - -
Harbor Uplands 7,711,582 7,453,091 - -
Wastewater 4,409,338 5,553,159 - -
Solid Waste 6,816,484 7,198,264 35,035 -
Transit 5,906,750 192,756 2,726,384 -
Total Business-Type Activities 34,136,115 29,196,541 2,761,419 - Total Primary Government $ 177,313,672 $ 60,801,627 $ 19,211,572 $ 6,278,915 DRAFT
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CITY OF REDONDO BEACH

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(29)
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

CHANGE IN NET POSITION
Net Position - Beginning of Year,
as Previously Reported
Implementation of GASB 101 - Note 17
Error Corrections - Note 17
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
$ - (12,921,152) $ (12,921,152) $
(61,228,364) - (61,228,364)
(10,446,217) - (10,446,217)
8,474,640 - 8,474,640
(7,050,748) - (7,050,748)
(5,671,562) - (5,671,562)
(88,843,403) - (88,843,403)
- (492,690) (492,690)
- (258,491) (258,491)
- 1,143,821 1,143,821
- 416,815 416,815
- (2,987,610) (2,987,610)
- (2,178,155) (2,178,155)
(88,843,403) (2,178,155) (91,021,558)
50,946,477 - 50,946,477
9,122,741 - 9,122,741
11,043,781 - 11,043,781
1,529,446 - 1,529,446
1,215,932 - 1,215,932
8,840,537 - 8,840,537
1,168,783 - 1,168,783
110,718 - 110,718
6,466,937 2,488,918 8,955,855
47,910 - 47,910
(1,266,668) 1,266,668 -
89,226,594 3,755,586 92,982,180
383,191 1,577,431 1,960,622
42,481,000 82,276,272 124,757,272
(7,804,892) (428,211) (8,233,103)
(3,641,086) (989,494) (4,630,580)
31,035,022 80,858,567 111,893,589
$ 31,418,213 $ 82,435,998 $ 113,854,211
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FUND FINANCIAL STATEMENTS
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CITY OF REDONDO BEACH

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(31)
Special Revenue Funds
Other Other Total
Intergovernmental Low-Mod Income Governmental Governmental General Grants Housing Funds Funds
ASSETS
Pooled Cash and Investments $ 16,333,896 $ 6,716 $ 1,790,972 $ 39,797,357 $ 57,928,941 Receivables:

Accounts 813,007 429,000 7,622 136,907 1,386,536
Taxes 5,413,998 - - 31,255 5,445,253
Accrued Interest 331,899 - - 93,052 424,951
Notes and Loans 12,600 - 2,033,440 169,764 2,215,804
Leases 4,595,338 - - 763,502 5,358,840
Prepaid Costs 180,123 - - - 180,123
Due from Other Governments 2,042,833 6,879,761 - 2,068,274 10,990,868 Due from Other Funds 11,624,435 210,465 61,200 6,118,229 18,014,329 Advances to Successor Agency - - 535,731 - 535,731
Restricted Assets:

Cash and Investments with Fiscal Agents - - - 55,492 55,492 Deposits Receivable 2,016,930 - - - 2,016,930
Total Assets $ 43,365,059 $ 7,525,942 $ 4,428,965 $ 49,233,832 $ 104,553,798

LIABILITIES, DEFERRED INFLOW S OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 1,345,273 $ 815,999 $ 19,745 $ 1,789,769 $ 3,970,786 Accrued Liabilities 6,423,624 386,100 - - 6,809,724
Unearned Revenue 731,996 21,078 - 1,974,422 2,727,496
Deposits Payable 4,228,681 - - - 4,228,681
Due to Other Funds 79,474 6,308,351 1,380,047 8,904,924 16,672,796 Total Liabilities 12,809,048 7,531,528 1,399,792 12,669,115 34,409,483

DEFERRED INFLOW S OF RESOURCES
Unavailable Revenues - 6,895,700 316,294 235,965 7,447,959 Deferred Leases Related Items 4,480,746 - - 737,209 5,217,955 Total Deferred Inflows of Resources 4,480,746 6,895,700 316,294 973,174 12,665,914

FUND BALANCES
Nonspendable:

Prepaid Costs 180,123 - - - 180,123
Notes and Loans 12,600 - - - 12,600
Restricted for:

Housing and Community Development - - - 9,320,910 9,320,910 Public Safety - - - 589,979 589,979
Public W orks - - - 9,689,934 9,689,934
Debt Service - - - 1,721,169 1,721,169
Low and Moderate Income Housing - - 2,712,879 1,297,831 4,010,710 Committed to:

Contingency 8,599,208 - - - 8,599,208
Assigned to:

Capital Projects - - 1 - 3,093,756 13,093,756
Compensated Absences 838,736 - - - 838,736
Future Pension Payments 7,975,721 - - - 7,975,721
Continuing Operations 3,105,200 - - - 3,105,200
Unassigned 5,363,677 (6,901,286) - (122,036) (1,659,645) Total Fund Balances 26,075,265 (6,901,286) 2,712,879 35,591,543 57,478,401 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 43,365,059 $ 7,525,942 $ 4,428,965 $ 49,233,832 $ 104,553,798 DRAFT
566

CITY OF REDONDO BEACH

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(32)
Fund Balances of Governmental Funds $ 57,478,401
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. 187,160,074
Long-term debt and compensated absences that have not been included in the governmental fund activity:

Bonds Payable (201,476,167)
Leases and Subscriptions (2,087,071)
Net OPEB Liability (10,786,553)
Net Pension Liability (32,038,887)
Compensated Absences (7,982,064)
Accrued interest payable for the current portion of interest due on bonds are not reported in the governmental funds. (503,357) 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. 7,447,959 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 29,079,326 Deferred Inflows of Resources - Pension Related Items (495,927) Deferred Outflows of Resources - OPEB Related Items 2,994,693 Deferred Inflows of Resources - OPEB Related Items (2,146,872) 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. 4,774,658
Net Position of Governmental Activities $ 31,418,213
DRAFT
567

CITY OF REDONDO BEACH

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(33)
Special Revenue Funds
Other Other Total
Intergovernmental Low-Mod Income Governmental Governmental General Grants Housing Funds Funds

REVENUES
Taxes 83,657,491 $ $ - - $ $ 83,784,790 127,299 $
Licenses and Permits 3,509,054 - - - 3,509,054
Intergovernmental 565,494 7,096,579 - 21,234,171 28,896,244 Charges for Services 10,245,522 - - 1,917,822 12,163,344 Use of Money and Property 4,961,657 9,270 102,057 1,524,115 6,597,099 Fines and Forfeitures 1,711,773 - - 14,489 1,726,262
Miscellaneous 5,973,984 12,839 - 1,290,171 7,276,994
Total Revenues 110,624,975 7,118,688 102,057 26,108,067 143,953,787

EXPENDITURES
Current:

General Government 18,010,461 869,315 - 4,238 18,884,014 Public Safety 59,575,539 600,535 428,175 - 60,604,249
Housing and Community Development 4,433,228 67,757 343,630 10,769,984 15,614,599 Cultural and Leisure Services 11,710,649 - - 11,710,649 - Public Works 6,912,928 141,777 8,824,532 - 15,879,237
Capital Outlay 271,225 5,918,104 7,548,385 - 13,737,714 Debt Service:

Principal Retirement 552,775 60,352 7,285,919 - 7,899,046 Interest and Fiscal Charges 22,171 7,391 5,815,798 - 5,845,360 Total Expenditures 101,488,976 7,665,231 343,630 40,677,031 150,174,868

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 9,135,999 (546,543) (241,573) (14,568,964) (6,221,081)

OTHER FINANCING SOURCES (USES)
Transfers In 2,061,967 417,552 19,180,886 - 21,660,405
Transfers Out (21,657,252) (23,700) (279,000) (4,067,121) (26,027,073) Lease Financing - - - - -
Subscription Financing 267,659 - - 267,659 -
Total Other Financing Sources (Uses) (19,327,626) 393,852 (279,000) 15,113,765 (4,099,009) NET CHANGE IN FUND BALANCES (10,191,627) (152,691) (520,573) 544,801 (10,320,090) Fund Balances (Deficits) - Beginning of Year
as Previously Presented 36,266,892 (6,362,495) 3,233,452 38,301,728 71,439,577 Error Corrections - Note 17 (386,100) - (3,254,986) - (3,641,086) Fund Balances (Deficits) - Beginning of Year
as Restated 36,266,892 (6,748,595) 3,233,452 35,046,742 67,798,491 FUND BALANCES (DEFICITS) - END OF YEAR $ 26,075,265 $ (6,901,286) $ 2,712,879 $ 35,591,543 $ 57,478,401 DRAFT
568

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, 2025
See accompanying Notes to Basic Financial Statements.
(34)
Net Change in Fund Balances - Total Governmental Funds $ (10,320,090) 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 11,497,182
Depreciation (5,408,985)
Loss on Disposal of Capital Assets (182,448)
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 7,262,233
Leases and Subscriptions Principal Repayments 636,813
Subscriptions Financing (267,659)
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. 465,095
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. 3,364,735
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. (9,143,177)
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. 909,019
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. 777,557
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. 817,818
Change in Net Position of Governmental Activities $ 383,191 DRAFT
569

CITY OF REDONDO BEACH

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(35)
Business- Type Activities - Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater
ASSETS
Current Assets:

Cash and Investments $ - 5,984,276 $ 15,751,578 $
Receivables:

Accounts 271,127 686,369 27,275
Taxes - - 94,898
Accrued Interest 104,558 216,252 87,596
Leases 2,657,908 2,160,570 -
Prepaid Costs 173,907 152,717 -
Due from Other Governments - - -
Due from Other Funds - 350,142 -
Deposits - 315,124 -
Restricted:

Cash with Fiscal Agent - - 769
Total Current Assets 9,865,450 3,207,500 15,962,116
Noncurrent Assets:

Leases Receivable 23,261,371 41,504,007 -
Capital Assets - Net of Accumulated Depreciation/Amortization 24,270,981 24,386,935 30,597,304 Total Noncurrent Assets 65,774,988 47,648,306 30,597,304 Total Assets 50,855,806 75,640,438 46,559,420

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding - - 231,370
Deferred Pension Related Items 1,745,557 895,814 398,396 Deferred OPEB Related Items 166,586 88,885 65,530
Total Deferred Outflows of Resources 1,912,143 984,699 695,296

LIABILITIES
Current Liabilities:

Accounts Payable 197,141 192,675 684,592
Accrued Interest 39,118 12,979 41,616
Unearned Revenues - - -
Deposits Payable 221,049 271,591 -
Due to Other Funds 544,986 907,025 -
Accrued Compensated Absences 109,444 16,903 50,875
Accrued Claims and Judgments - - -
Long- Term Debt - Due within One Year 333,963 110,808 487,347 Total Current Liabilities 1,445,701 1,511,981 1,264,430 Noncurrent Liabilities:

Accrued Compensates Absences 291,818 55,292 238,630
Accrued Claims and Judgments - - -
Long- Term Debt - Due in More than One Year 8,497,761 2,819,534 6,759,997 Net Pension Liability 1,973,534 967,802 211,355
Net OPEB Liability 600,026 320,155 236,033
Total Noncurrent Liabilities 11,363,139 4,162,783 7,446,015 Total Liabilities 12,808,840 5,674,764 8,710,445

DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 27,421 16,173 17,414
Deferred OPEB Related Items 119,425 63,721 46,978
Deferred Leases Related Items 42,461,308 25,009,181 -
Total Deferred Inflows of Resources 42,608,154 25,089,075 64,392

NET POSITION
Net Investment in Capital Assets 24,270,981 24,320,740 25,459,360 Unassigned (2,135,394) (3,244,074) 13,020,519
Total Net Position $ 22,135,587 $ 21,076,666 $ 38,479,879 DRAFT
570

CITY OF REDONDO BEACH

STATEMENT OF NET POSITION (CONTINUED)

PROPRIETARY FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(36)
ASSETS
Current Assets:

Cash and Investments
Receivables:

Accounts
Taxes
Accrued Interest
Leases
Prepaid Costs
Due from Other Governments
Due from Other Funds
Deposits
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
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
$ 2,710,217 $ 24,446,071 $ 29,709,116
181,377 1,166,148 36,292
119,192 214,090 -
- 408,406 -
- 4,818,478 -
- 326,624 -
99,192 99,192 -
- 350,142 -
- 315,124 -
63 832 -
3,110,041 32,145,107 29,745,408
- 64,765,378 -
590,862 79,846,082 12,802,928
590,862 144,611,460 12,802,928
3,700,903 176,756,567 42,548,336
- 231,370 -
331,611 3,371,378 1,253,431
45,428 366,429 179,794
377,039 3,969,177 1,433,225
438,579 1,512,987 2,678,038
9,465 103,178 52,763
1,067 1,067 -
- 492,640 -
239,664 1,691,675 -
19,647 196,869 109,146
- - 1,047,534
80,798 1,012,916 558,040
789,220 5,011,332 4,445,521
102,338 688,078 336,865
- - 23,565,277
2,055,910 20,133,202 9,102,540
175,924 3,328,615 938,156
163,622 1,319,836 647,610
2,497,794 25,469,731 34,590,448
3,287,014 30,481,063 39,035,969
14,495 75,503 42,040
32,567 262,691 128,894
- 67,470,489 -
47,062 67,808,683 170,934
590,862 74,641,943 11,978,907
153,004 7,794,055 (7,204,249)
$ 743,866 $ 82,435,998 $ 4,774,658
DRAFT
571

CITY OF REDONDO BEACH

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(37)
Business-Type Activities -
Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater

OPERATING REVENUES
Sales and Service Charges 1,069,722 $ 1,974,744 $ 5,552,902 $ Harbor Rentals 7,701,249 5,478,347 -
Miscellaneous 28,300 - 257
Total Operating Revenues 8,799,271 7,453,091 5,553,159

OPERATING EXPENSES
Administrative and General 561,303 2,631,228 271,099
Personnel Services 6,334,840 2,426,600 1,761,785
Contractual Services 528,946 205,008 741,896
Internal Service Charges 1,000,985 2,000,504 727,345
Depreciation and Amortization Expense 628,537 369,490 642,109 Total Operating Expenses 9,054,611 7,632,830 4,144,234
OPERATING INCOME (LOSS) (179,739) (255,340) 1,408,925

NONOPERATING REVENUES (EXPENSES)
Intergovernmental - - -
Interest Revenue 1,075,787 570,056 843,075
Interest Expense (237,350) (78,752) (265,104)
Gain (loss) on Disposal of Capital Assets - - -
Total Nonoperating Revenues (Expenses) 838,437 491,304 577,971 INCOME (LOSS) BEFORE TRANSFERS 311,565 583,097 1,986,896 Transfers In 104,237 - -
Transfers Out (104,237) (1,655,030) -
CHANGES IN NET POSITION (1,239,228) 478,860 1,986,896
Net Position - Beginning of Year, as Previously Reported 21,942,949 22,359,284 36,572,808 Implementation of GASB 101 - Note 17 (286,222) (43,390) (79,825) Error Corrections - Note 17 - - -
Fund Balances (Deficits) - Beginning of Year, as Restated 21,656,727 22,315,894 36,492,983 NET POSITION - END OF YEAR $ 22,135,587 $ 21,076,666 $ 38,479,879 DRAFT
572

CITY OF REDONDO BEACH

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(38)

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 Implementation of GASB 101 - Note 17
Error Corrections - Note 17
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
$ 7,179,549 $ 15,776,917 $ 19,509,206
- 13,179,596 -
211,471 240,028 5,964,005
7,391,020 29,196,541 25,473,211
576,621 4,040,251 13,209,566
1,299,867 11,823,092 5,611,136
9,719,978 11,195,828 3,309,327
830,453 4,559,287 3,355,546
238,891 1,879,027 2,099,495
12,665,810 33,497,485 27,585,070
(5,274,790) (4,300,944) (2,111,859)
2,761,419 2,761,419 -
- 2,488,918 48,162
(57,424) (638,630) (266,395)
- - 47,910
2,703,995 4,611,707 (170,323)
(2,570,795) 310,763 (2,282,182)
2,926,812 3,031,049 3,100,000
(5,114) (1,764,381) -
350,903 1,577,431 817,818
1,401,231 82,276,272 4,137,884
(18,774) (428,211) (181,044)
(989,494) (989,494) -
392,963 80,858,567 3,956,840
$ 743,866 $ 82,435,998 $ 4,774,658
DRAFT
573

CITY OF REDONDO BEACH

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(39)
Business-Type Activities -
Enterprise Funds
Harbor Harbor
Tidelands Uplands Wastewater

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 8,719,624 $ 7,773,902 $ 5,536,107 $ Cash Paid to Suppliers for Goods and Services (2,836,978) (4,532,849) (1,766,236) Cash Paid to Employees for Services (6,395,439) (2,460,451) (1,690,667) Net Cash Provided (Used) by Operating Activities (512,793) 780,602 2,079,204

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash Transfers Out (104,237) (1,655,030) -
Cash Transfers In - 104,237 -
Repayments Received from Other Funds (175,142) - -
Payments Made to Other Funds - 907,025 -
Principal Paid on Noncapital Debt Issues (329,582) (109,354) (105,873) Payment for Cost of Issuance - - -
Interest Paid on Noncapital Debt (237,835) (78,913) (63,009) Cash Received from Other Governments - - -
Net Cash Provided (Used) by Noncapital
Financing Activities (846,796) (832,035) (168,882)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (106,369) (1,445,738) (3,767,236) Principal Paid on Capital Debt - - (360,000)
Interest Paid on Capital Debt - - (205,488)
Proceeds from Sale of Capital Assets - - -
Net Cash Used by Capital and Related
Financing Activities (106,369) (1,445,738) (4,332,724)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 1,014,298 542,882 845,285
Net Cash Provided (Used) by Investing Activities 1,014,298 542,882 845,285

NET DECREASE IN CASH AND
CASH EQUIVALENTS (954,289) (451,660) (1,577,117)
Cash and Cash Equivalents - Beginning of Year 6,435,936 954,289 17,329,464 CASH AND CASH EQUIVALENTS - END OF YEAR $ 5,984,276 $ - $ 15,752,347

NONCASH CAPITAL AND FINANCING ACTIVITIES
Qualifying Lease/Subscription Contracts $ - $ - $ -
DRAFT
574

CITY OF REDONDO BEACH

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(40)

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
Principal Paid on Noncapital Debt Issues
Payment for Cost of Issuance
Interest Paid on Noncapital Debt
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 DECREASE IN CASH AND

CASH EQUIVALENTS
Cash and Cash Equivalents - Beginning of Year

CASH AND CASH EQUIVALENTS - END OF YEAR

NONCASH CAPITAL AND FINANCING ACTIVITIES
Qualifying Lease/Subscription Contracts
Business-Type Activities -
Enterprise Funds Governmental
Other Activities -
Nonmajor Internal
Enterprise Funds Totals Service Funds
$ 29,528,560 7,498,927 $ 25,701,082 $
(20,554,265) (11,418,202) (19,519,469)
(11,867,633) (1,321,076) (5,669,095)
(2,893,338) (5,240,351) 512,518
(1,764,381) (5,114) -
3,031,049 2,926,812 3,100,000
(858,121) (682,979) -
907,025 - -
(624,548) (79,739) (351,446)
- - -
(437,296) (57,539) (171,879)
2,478,435 2,478,435 -
2,732,163 4,579,876 2,576,675
(5,334,292) (14,949) (3,798,214)
(360,000) - (413,247)
(205,488) - (90,444)
- - 72,051
(5,899,780) (14,949) (4,229,854)
2,402,465 - 48,162
2,402,465 - 48,162
(3,658,490) (675,424) (1,092,499)
28,105,393 3,385,704 30,801,615
$ 24,446,903 2,710,280 $ 29,709,116 $
$ - - $ 191,795 $
DRAFT
575

CITY OF REDONDO BEACH

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(41)
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) (255,340) $ (179,739) $ 1,408,925 $ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 628,537 369,490 642,109
Loss on CIP write-off - - -
(Increase) Decrease In:

Accounts Receivable 618,440 582,036 (76)
Taxes Receivable - - (16,976)
Leases Receivable (210,364) 456,545 -
Deposits (315,124) - -
Deferred Outflow Pension Related Items 705,539 417,225 349,025 Deferred Outflow OPEB Related Items 39,394 22,672 14,178 Prepaid Expense 23,321 (42,995) -
Increase (Decrease) In:

Accounts Payable (1,351,741) 34,446 (59,555)
Deposits Payable (94,468) 13,987 -
Unearned Revenue - - -
Claims and Judgments - - -
Net Pension Liability 279 (42,155) (266,630)
OPEB Liability (40, (26,949) 869) (11,975)
Deferred Pension Related Items (69,676) (43,223) (31,584) Deferred OPEB Related Items (51, (29,117) 991) (19,355) Deferred Inflow Lease Related Items (78,131) (717,770) - Compensated Absences (60,599) (33,851) 71,118
Net Cash Provided (Used) by Operating Activities (512,793) $ 780,602 $ 2,079,204 $ DRAFT
576

CITY OF REDONDO BEACH

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(42)

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
Deposits
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
$ (4,300,944) (5,274,790) $ (2,111,859) $
238,891 1,879,027 2,099,495
- - -
168,525 1,368,925 18,162
(18,442) (35,418) -
- 246,181 -
- (315,124) -
329,269 1,801,058 1,270,809
18,782 95,026 66,182
- (19,674) -
(306,620) (1,683,470) 241,869
- (80,481) -
(42,176) (42,176) -
- - 209,709
(246,716) (555,222) (949,797)
(36,166) (115,959) (117,735)
(28,830) (173,313) (80,551)
(20,869) (121,332) (75,807)
- (795,901) -
(21,209) (44,541) (57,959)
$ (5,240,351) $ (2,893,338) $ 512,518
DRAFT
577

CITY OF REDONDO BEACH

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(43)
Private-Purpose
Trust Fund
Redevelopment
Custodial Obligation
Funds Retirement Fund
ASSETS
Pooled Cash and Investments $ 178,012 $ 1,696,679
Receivables:

Accounts 37,758 160,368
Accrued Interest - 22,550
Total Assets 215,770 1,879,597

LIABILITIES
Accrued Interest - 66,006
Due to Other Governments - -
Long-Term Liabilities:

Due in One Year 1,431,999 -
Due in More than One Year 8,379,388 -
Advances from City - 535,731
Total Liabilities 10,413,124 -

NET POSITION
Restricted for Other Purposes 215,770 (8,533,527)
Total Net Position $ 215,770 $ (8,533,527)
DRAFT
578

CITY OF REDONDO BEACH

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2025
See accompanying Notes to Basic Financial Statements.
(44)
Private-Purpose
Trust Fund
Redevelopment
Custodial Obligation
Funds Retirement Fund

ADDITIONS
Charges for Services $ - $ 272,986
RRTTF Distributions 1,030,002 -
Investment Earnings - 148,028
Total Additions 1,451,016 -

DEDUCTIONS
Interest Expense - 132,011
Contributions to Other Governments - -
Total Deductions - 132,011
CHANGES IN NET POSITION 1,319,005 -
Net Position - Beginning of year, as Previously Reported 215,770 (13,107,519) Error Correction - Note 17 3,254,987 -
Net Position - Beginning of year, as Restated 215,770 (9,852,532) NET POSITION - END OF YEAR $ 215,770 $ (8,533,527)
DRAFT
579
(45)

NOTES TO FINANCIAL STATEMENTS
DRAFT
580

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(46)
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.

DRAFT
581

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(47)
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.

DRAFT
582

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(48)
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
DRAFT
583

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(49)
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. However, debt service principal and interest expenditures on general long‐term debt, including lease and subscription liabilities, as well as expenditures related to compensated absences, claims and judgments, and postemployment benefits are recognized based on specific accounting rules applicable to each, generally when payment is due.

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.

DRAFT
584

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(50)
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.

DRAFT
585

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(51)
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.

DRAFT
586

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(52)
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." DRAFT
587

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(53)
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.

DRAFT
588

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(54)
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 2025, 2024, and 2023, the City's street system was rated at a PCI of 61, 69, and 70 on the average, respectively.

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.

DRAFT
589

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(55)
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
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

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.

DRAFT
590

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(56)
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, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
DRAFT
591

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(57)
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, 2023
Measurement Date (MD) June 30, 2024
Measurement Period (MP) July 1, 2023 to June 30, 2024
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, 2023)
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." DRAFT
592

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(58)
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.

DRAFT
593

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(59)
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.

DRAFT
594

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(60)
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 has three items that qualify for reporting in this category. One is the deferred charge on refunding reported in the government-wide 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 12A), 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 (see Note 12B):

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.

DRAFT
595

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(61)
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.

NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Deficit Fund Balance
The following funds had a deficit balance as of June 30, 2025:

Major Funds:

Other Intergovernmental Grants (6,901,286) $
Nonmajor Funds:

Local Transportation Article 3 (73,332)
Street Landscaping and Lighting District (4,140)
Community Development Block Grant (59,287)
Internal Service Funds:

Building Occupancy (757,299)
Self-Insurance Program (15,134,391)
Private-Purpose Trust Fund (8,533,527)
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.

DRAFT
596

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(62)
NOTE 3 CASH AND INVESTMENTS
Cash and investments are presented on the statement of net position as follows at June 30, 2025:

Government-Wide Statement of Net Position
Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and Investments 87,638,057 $ 24,446,071 $ 112,084,128 $ 1,874,691 $ 113,958,819 $ Restricted Cash and Investments
with Fiscal Agents 55,492 832 56,324 - 56,324
Total 87,693,549 $ 24,446,903 $ 112,140,452 $ 1,874,691 $ 114,015,143 $ Cash and investments consisted of the following at June 30, 2025:

Cash:

Petty Cash 11,450 $
Demand Deposits - City 19,928,852
Demand Deposits - Successor Agency 1,426,983
Total Cash 21,367,285
Investments:

Local Agency Investment Fund (LAIF) - City 304,493
Local Agency Investment Fund (LAIF) -
Successor Agency 2,060,667
Money Market Mutual Funds 3,208,888
Medium-term Notes 10,597,946
U.S. Government Securities 32,579,720
Federal Agency Securities 24,587,041
CAMP 19,252,779
Total Investments 92,591,534
Total Cash and Investments 113,958,819
Cash and Investments with Fiscal Agents 56,324
Total 114,015,143 $
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.

DRAFT
597

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(63)
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, 2025, 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.

DRAFT
598

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(64)
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, 2025, all MTN's were rated "A2" or higher by Moody's. As of June 30, 2025, 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, 2025, 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 $21,367,285 at June 30, 2025.

Bank balances at June 30, 2025, were $24,097,248 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, 2025, 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.

DRAFT
599

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(65)
NOTE 3 CASH AND INVESTMENTS (CONTINUED)
C. Deposit and Investment Risk (Continued)
Concentration of Credit Risk (Continued)
As of June 30, 2025, the City has invested more than 5% of its total investment value with the following issuers:
% of Total
Investments
Federal Home Loan Bank 11,768,140 $ 13%
Federal Farm Credit Bank 8,022,601 9%
Federal Home Loan Mortgage Corporation 4,796,300 5%
Total 24,587,041 $ 27%
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, 2025, 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 $ 2,365,160 $ - $ - $ 2,365,160 - $
California Asset Management Program
(Local Government Investment Pools) 19,252,779 - - 19,252,779 - U.S. Treasury Notes 24,836,940 7,742,780 - 32,579,720 - Federal Agencies:

Federal Farm Credit Bank 3,007,601 - 5,015,000 8,022,601 - Federal Home Loan Bank 11,768,140 - - 11,768,140 -
Federal Home Loan
Mortgage Corporation 4,796,300 - - 4,796,300 -
Money Market 3,208,888 - - 3,208,888 -
Medium-term Notes 4,548,286 6,049,660 - 10,597,946 -
Total Investments $ 54,212,053 $ 33,364,481 $ 5,015,000 $ 92,591,534 - $ DRAFT
600

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(66)
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, 2025.

Fair Value Measurement Using
Level 1 Level 2 Level 3 Total
Investments by Fair Value Level:

U.S. Treasury Notes 32,579,720 $ - $ $ 32,579,720 - $
Federal Farm Credit Bank 8,022,601 - 8,022,601 -
Federal Home Loan Bank 11,768,140 - 11,768,140 -
Federal Home Loan Mortgage
Corporation 4,796,300 - 4,796,300 -
Federal National Mortgage
Association - - - -
Money Market 3,208,888 - 3,208,888 -
Medium-term Notes 10,597,946 - 10,597,946 -
Negotiable Certificates of Deposit - - - -
Total Investments by
Fair Value Level $ 35,788,608 $ 35,184,987 $ 70,973,595 - California Asset Management Program
(Local Government Investment Pools) 19,252,779
Investments Measured at Net
Asset Value:

Local Agency Investment
Fund (LAIF) 2,365,160
Total Investments $ 92,591,534
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.

DRAFT
601

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(67)
NOTE 4 RECEIVABLES
The following is a summary of receivables net of allowances for uncollectible amounts at June 30, 2025:

Government-Wide Fiduciary
Statement of Net Position Funds
Governmental Business-Type Statement of
Activities Activities Net Position Total
Accounts Receivable $ 1,422,828 $ 1,166,148 $ 198,126 $ 2,787,102 Taxes Receivable 5,445,253 214,090 - 5,659,343
Accrued Interest Receivable 424,951 408,406 22,550 855,907 Notes and Loans Receivable 2,215,804 - - 2,215,804
Leases Receivable 5,358,840 69,452,495 74,811,335 -
Total $ 14,867,676 $ 71,241,139 $ 220,676 $ 86,329,491
At June 30, 2025, 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, 2025, was as follows:

Governmental Funds:

General Fund 813,007 $
Other Intergovernmental Grants 429,000
Low-Mod Income Housing 7,622
Remaining Governmental Funds 136,907
Total Governmental Funds 1,386,536
Proprietary Funds:

Harbor Tidelands 686,369
Harbor Uplands 271,127
Wastewater 27,275
Other Nonmajor Enterprise Funds 181,377
Internal Service Funds 36,292
Total Proprietary Funds 1,202,440
Total 2,588,976 $
DRAFT
602

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(68)
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, 2025, was as follows:

Governmental Funds:

General Fund 331,899 $
Remaining Governmental Funds 93,052
Total Governmental Funds 424,951
Proprietary Funds:

Harbor Tidelands 216,252
Harbor Uplands 104,558
Wastewater 87,596
Total Proprietary Funds 408,406
Total 833,357 $
C. Taxes Receivable
At June 30, 2025, 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 $ 1,108,008 $ 31,255 $ 94,898 $ 119,192 $ 1,353,353 Sales Taxes 2,170,976 - - 2,170,976 -
Transient Occupancy Taxes 1,048,677 - - 1,048,677 -
Utility Users Taxes 713,034 - - 713,034 -
Franchise Taxes 177,370 - - 177,370 -
Transfer Taxes 195,933 - - 195,933 -
Total Taxes $ 5,413,998 $ 31,255 $ 94,898 $ 119,192 $ 5,659,343 DRAFT
603

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(69)
NOTE 4 RECEIVABLES (CONTINUED)
D. Notes and Loans Receivable
At June 30, 2025, the City had the following notes and loans receivable:

Government Funds
Low-Mod Nonmajor
General Income Governmental
Fund Housing Funds Total
Home Rehabilitation Loans $ 316,294 - - $ $ 316,294
Housing Assistance Loans - - 169,764 169,764
Senior Housing Program - 1,717,146 - 1,717,146
Computer Loan Program 12,600 - - 12,600
Total $ 12,600 $ 2,033,440 $ 169,764 $ 2,215,804
Home Rehabilitation Loans
At June 30, 2025, the City was owed, in its Low and Moderate Income Housing Asset Special Revenue Fund, $316,294 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, 2025, the City was owed, in its Community Development Block Grant Special Revenue Fund, $169,764 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, 2025, the loan receivable included accrued interest of $1,717,146.

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, 2025, the loan receivable balance was $12,600.

DRAFT
604

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(70)
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 has 52 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, 2025, the City reported a lease receivable of $75,642,634, $5,358,840 for governmental funds and $69,452,495 for proprietary funds, respectively. The lessees were required to make monthly payments in fiscal year 2025 ranging from $200 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, 2025, was $72,688,444, $5,217,955 for governmental funds and $67,470,489 for proprietary funds respectively, and the City recognized lease revenue of $5,544,705, $498,701 for governmental funds and $5,046,004 for proprietary funds, respectively. The City also recognized interest income of $1,415,657, $97,694 for governmental funds and $1,317,963 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.

DRAFT
605

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(71)
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, 2025:

Governmental Activities
Minimum Future
Year Ending June 30, Lease Interest Rental Revenue
2026 $ 462,856 $ 91,031 $ 553,887
2027 472,187 84,187 556,374
2028 429,571 77,176 506,747
2029 137,236 72,288 209,524
2030 143,391 68,770 212,161
2031 - 2035 475,646 294,810 770,456
2036 - 2040 113,659 271,340 384,999
2041 - 2045 123,766 261,233 384,999
2046 - 2050 134,772 250,228 385,000
2051 - 2055 146,756 238,243 384,999
2056 - 2060 159,806 225,193 384,999
2051 - 2065 174,017 210,983 385,000
2066 - 2070 189,491 195,509 385,000
2071 - 2075 206,341 178,658 384,999
2076 - 2080 224,690 160,310 385,000
2081 - 2085 244,670 140,330 385,000
2086 - 2090 266,427 118,573 385,000
2091 - 2095 290,119 94,881 385,000
2096 - 2100 315,917 69,083 385,000
2101 - 2105 344,009 40,990 384,999
2106 - 2110 303,513 10,903 314,416
Total $ 5,358,840 $ 3,154,719 $ 8,513,559
DRAFT
606

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(72)
Business-Type Activities
Minimum Future
Year Ending June 30, Lease Interest Rental Revenue
2026 $ 4,844,121 $ 1,211,335 $ 6,055,456
2027 4,285,240 1,131,478 5,416,718
2028 2,973,923 1,058,588 4,032,511
2029 2,801,824 995,550 3,797,374
2030 2,546,160 935,860 3,482,020
2031 - 2035 9,544,597 4,032,605 13,577,202
2036 - 2040 6,229,741 3,372,910 9,602,651
2041 - 2045 6,783,645 2,819,006 9,602,651
2046 - 2050 7,386,798 2,215,853 9,602,651
2051 - 2055 8,043,579 1,559,072 9,602,651
2056 - 2060 8,758,756 843,895 9,602,651
2051 - 2065 3,990,236 239,747 4,229,983
2066 - 2070 1,395,240 39,770 1,435,010
Total $ 69,583,860 $ 20,455,669 $ 90,039,529
DRAFT
607

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(73)
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. As of June 30, 2025, the value of the lease liability is $1,242,080. 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, 2025, the value of the lease liability is $275,604.

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, 2025, include the following:

Amount of
Leased Capital Accumulated
Lease Underlying Asset Assets Amortization
Community Service Department Building 2,245,558 $ 1,056,733 $ Workstation Equipment 550,897 195,109
Total $ 2,796,455 $ 1,251,842
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
2026 $ 401,907 $ 9,295 $ 411,202
2027 410,068 6,003 416,071
2028 278,010 2,651 280,661
2029 283,958 1,363 285,321
2030 143,741 192 143,933
Total $ 1,517,684 $ 19,504 $ 1,537,188
DRAFT
608

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(74)
NOTE 6 SUBSCRIPTIONS
As of June 30, 2025, the City has 25 subscription-based information technology arrangements (SBITA) for the use of various software. The subscriptions have payments that range from $0 to $191,796 and interest rates that range from 2.0237% to 3.6310%. As of 06/30/2025, the total combined value of the subscription liability is $970,901, and the total combined value of the short-term subscription liability is $427,775.

The subscription assets at June 30, 2025, include the following:

Subscription Accumulated
Asset Class Asset Value Amortization
Software 2,475,579 $ 1,162,831 $
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
2026 427,775 $ 25,778 $ 453,553 $
2027 298,811 13,781 312,592
2028 157,972 5,901 163,873
2029 86,343 1,996 88,339
Total $ 970,901 $ 47,456 $ 1,018,357
NOTE 7 INTERFUND TRANSACTIONS
A. Government-Wide Financial Statements
Internal Balances
At June 30, 2025, the City had the following internal receivables and payables for covering cash shortfalls:

Internal
Balances
Receivable
Governmental
Activities
Internal Balances Payable:

Business-Type Activities 1,341,533 $
DRAFT
609

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(75)
NOTE 7 INTERFUND TRANSACTIONS (CONTINUED)
A. Government-Wide Financial Statements (Continued)
Transfers
The City had the following transfers as of June 30, 2025:

Transfers In
Business-Type
Activities
Transfers Out:

Governmental Activities 1,266,668 $
B. Fund Financial Statements
Due to/from Other Funds
The City had the following due to/from other funds as of June 30, 2025:

Due from Other FundsDue from Other Funds Due from Other Funds Government Funds Government Funds Government Funds Enterprise Funds Other Other
General Intergovernmental Low-Mod Income Governmental Harbor Due to Other Funds Fund Grants Housing Funds Tidelands Total Governmental Funds:

General Fund $ - $ - $ - $ 79,474 $ - $ 79,474
Other Intergovernmental
Grants 6,308,351 - - - - 6,308,351
Low-Mod Income Housing 1,380,047 - - - - 1,380,047
Other Governmental Funds 2,789,348 210,465 61,200 5,493,769 350,142 8,904,924 Enterprise Funds:

Harbor Tidelands - - - 544,986 - 544,986
Harbor Uplands 907,025 907,025
Transit 239,664 - - - - 239,664
Total $ 11,624,435 $ 210,465 $ 61,200 $ 6,118,229 $ 350,142 $ 18,284,997 The $6,308,351 due to other funds in the Other Intergovernmental Grants Fund is to cover negative cash balances.

The $1,380,046 due to other funds in the Low-Mod Income Housing Fund is due to the General Fund for housing compliance services.

Of the $8,904,924 due to other funds in Other Governmental Funds, $XXX is due to the Capital Improvement Projects fund to cover project expenditures, $XXX,XXX is due to the General Fund for expenditures made on behalf of the Public Financing Authority, $XXX,XXX is for Kincaids rental income passed through to the Harbor Tidelands Fund, $XXXX is due to the General for expenditure made on behalf of the Housing Authority, and $XXX and $XXXX 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.

DRAFT
610

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(76)
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.

The $907,025 due to other funds in the Harbor Uplands Fund relate to reimbursements to be made to the General Fund for current year payments of certain harbor costs.

The $239,664 due to other funds in the Transit Fund relate to reimbursements to be made to the General Fund for current year payments of certain transit costs.

Transfers
The City had the following transfers as of June 30, 2025:

Transfers In
Governmental Funds
Other Other Other
General Intergovernmental Governmental Harbor Enterprise Internal Service Transfers Out Fund Grants Funds Uplands Funds Funds Total Governmental Funds:

General Fund $ - $ 78,005 $ 18,375,010 $ 104,237 $ - $ 3,100,000 $ 21,657,252 Other Intergovernmental Grants - 23,700 - - - - 23,700
Low-Mod Income Housing 279,000 - - - - - 279,000
Other Governmental Funds - 334,433 805,876 - 2,926,812 - 4,067,121 Enterprise Funds:

Harbor Tidelands 104,237 - - - - - 104,237
Harbor Uplands 1,655,030 - - - - - 1,655,030
Other Enterprise Funds - 5,114 - - - - 5,114
Total 2,061,967 $ $ 417,552 $ 19,180,886 $ 104,237 $ 2,926,812 $ 3,100,000 $ 27,791,454 Of the $21,657,252 transfers from the General Fund, $15,050,449 was to fund debt service payments, $3,100,000 was to fund self-insurance, $3,052,125 is due to the Capital Improvement Projects fund to cover project expenditures, and $454,678 was to cover negative cash balances.

The $23,700 due to other funds in the Other Intergovernmental Grants Fund is due to the General Fund to reimburse for grant expenditures.

The $279,000 in the Low-Mod Income Housing Fund is due to the General Fund for housing compliance services.

The $104,237 transfer from the Harbor Uplands Enterprise Fund to the General Fund to reimburse for property tax in lieu.

The $1,655,030 transfer from the Harbor Tidelands Enterprise Fund to the General Fund to reimburse rental payments.

The $108,842 transfer from the nonmajor governmental funds and $5,114 from other enterprise funds to the Other Intergovernmental Grants Fund for a grant subsidy.

DRAFT
611

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(77)
NOTE 7 INTERFUND TRANSACTIONS (CONTINUED)
Transfers (Continued)
The $2,926,812 transfer from the nonmajor governmental funds to the Other Enterprise Fund for a transit subsidy.

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.

At June 30, 2025, the City's capital assets consisted of the following:

Governmental Business-Type
Activities Activities Total
Nondepreciable Assets:

Land 19,079,909 $ 20,773,255 $ 39,853,164 $
Construction in Progress 31,368,861 16,211,806 47,580,667 Infrastructure - Streets 54,054,036 - 54,054,036
Total Nondepreciable Assets 104,502,806 36,985,061 141,487,867 Depreciable Assets:

Buildings and Improvements 79,672,745 49,010,137 128,682,882 Right-to-Use Buildings 2,796,455 - 2,796,455
Right-to-Use Subscriptions 2,475,578 - 2,475,578
Furniture and Equipment 15,572,840 1,147,551 16,720,391 Automotive Equipment 22,797,885 1,740,729 24,538,614
Infrastructure 102,696,119 33,634,671 136,330,790
Total Depreciable Assets 226,011,622 85,533,088 311,544,710 Less Accumulated Depreciation for:

Buildings and Improvements 34,559,428 25,031,348 59,590,776 Right-to-Use Buildings 1,251,843 - 1,251,843
Right-to-Use Subscriptions 1,162,830 - 1,162,830
Furniture and Equipment 11,360,031 1,018,501 12,378,532 Automotive Equipment 16,198,575 1,172,721 17,371,296
Infrastructure 66,018,719 15,449,497 81,468,216
Total Accumulated Depreciation 130,551,426 42,672,067 173,223,493 Total Depreciable Assets, Net 95,460,196 42,861,021 138,321,217 Total Capital Assets, Net 199,963,002 $ 79,846,082 $ 279,809,084 $ DRAFT
612

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(78)
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 Balance at
June 30, 2024 Additions Deletions Transfers June 30, 2025 Nondepreciable Assets:

Land $ 19,079,909 $ - $ - $ 19,079,909 - $
Construction in Progress 20,602,793 11,484,059 (176,637) (541,354) 31,368,861 Infrastructure - Streets 54,054,036 - - 54,054,036 -
Total Nondepreciable
Assets 93,736,738 11,484,059 (176,637) (541,354) 104,502,806 Depreciable Assets:

Buildings and Improvements 79,131,391 - 541,354 - 79,672,745 Right-to-Use Buildings 2,245,558 - - 2,245,558 -
Right-to-Use Subscriptions 2,101,699 373,879 - 2,475,578 - Furniture and Equipment 13,883,875 1,694,775 (5,810) 15,572,840 - Right-to-Use Furniture and Equipmen - 550,897 - - 550,897 Automotive Equipment 21,145,209 1,934,477 (281,801) 22,797,885 - Infrastructure 102,696,119 - - 102,696,119 -
Total Depreciable
Assets 221,754,748 4,003,131 (287,611) 541,354 226,011,622 Less Accumulated Depreciation for:

Buildings and Improvements 32,298,051 2,261,377 - 34,559,428 - Right-to-Use Buildings 792,551 264,183 - 1,056,734 -
Right-to-Use Subscriptions 662,306 500,524 - 1,162,830 - Furniture and Equipment 10,788,260 571,771 - 11,360,031 - Right-to-Use Furniture and Equipmen 57,385 137,724 - 195,109 - Automotive Equipment 14,233,405 2,222,831 (257,661) 16,198,575 - Infrastructure 64,468,649 1,550,070 - 66,018,719 -
Total Accumulated
Depreciation 123,300,607 7,508,480 (257,661) 130,551,426 - Total Depreciable
Assets, Net 98,454,141 (3,505,349) (29,950) 541,354 95,460,196 Governmental Activities
Capital Assets, Net $ 192,190,879 $ 7,978,710 $ (206,587) $ 199,963,002 - $ Depreciation/amortization expense was charged to functions/programs of governmental activities for the fiscal year ended June 30, 2025, as follows:

General Government:

General Government 2,229,761 $
Public Safety 231,780
Public Works 2,546,113
Cultural and Leisure Services 401,331
Internal Service Funds:

Vehicle Replacement 1,404,797
Building Occupancy 11,751
Information Technology 404,072
Self-Insurance Program 5,067
Emergency Communications 249,130
Major Facilities Repair 24,678
Total Depreciation and Amortization Expense 7,508,480 $ DRAFT
613

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(79)
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, 2025:

Balance at
June 30, 2024 Balance at
As Restated* Additions Deletions Transfers June 30, 2025 Nondepreciable Assets:

Land $ 20,773,255 $ - $ - $ 20,773,255 - $
Construction in Progress 10,903,336 5,308,470 - 16,211,806 - Total Nondepreciable
Assets 31,676,591 5,308,470 - 36,985,061 -
Depreciable Assets:

Buildings and Improvements 49,010,137 - - 49,010,137 -
Furniture and Equipment 1,121,730 25,821 - 1,147,551 -
Automotive Equipment 1,740,729 - - 1,740,729 -
Infrastructure 33,634,671 - - 33,634,671 -
Total Depreciable
Assets 85,507,267 25,821 - 85,533,088 -
Less Accumulated Depreciation for:

Buildings and Improvements 23,793,297 1,238,051 - 25,031,348 - Furniture and Equipment 1,002,891 15,610 - 1,018,501 -
Automotive Equipment 929,238 243,483 - 1,172,721 -
Infrastructure 15,067,614 381,883 - 15,449,497 -
Total Accumulated
Depreciation 40,793,040 1,879,027 - 42,672,067 -
Total Depreciable
Assets, Net 44,714,227 (1,853,206) - 42,861,021 -
Business-Type Activities
Capital Assets, Net $ 76,390,818 $ 3,455,264 $ - $ 79,846,082 - $ *The beginning balance has been restated to reflect the transfer of assets from a prior year. See Note 17 for more information.

Depreciation/amortization expense for business-type activities for the fiscal year ended June 30, 2025, was charged as follows:

Harbor Tidelands $ 628,537
Harbor Uplands 369,490
Wastewater 642,109
Other Nonmajor Enterprise Funds 238,891
Total Depreciation and Amortization Expense $ 1,879,027 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.

DRAFT
614

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(80)
NOTE 9 COMPENSATED ABSENCES PAYABLE
The following is a summary of compensated absences payable transactions for the year ended June 30, 2025:

Balance at Amounts Due
June 30, 2024 Balance at Within One
As Restated* Net Change June 30, 2025 Year
Governmental Activities:

Compensated Absences Payable 11,850,765 $ $ (3,422,690) $ 8,428,075 $ 2,129,124 Business-Type Activities:

Compensated Absences Payable 929,487 (44,541) 884,946 196,870 Total $ 12,780,252 $ (3,467,231) $ 9,313,021 $ 2,325,994 (*) The beginning balances have been restated for the implementation of GASB Statement No. 101. See Note 17 for further details.

The change in the compensated absence liability is presented as a net change.

There is no fixed payment schedule to pay these liabilities.

NOTE 10 LONG-TERM LIABILITIES
The following is a summary of long-term liabilities transactions for the year ended June 30, 2025:

Amounts Due
Balance at Balance at Within One
June 30, 2024 Additions Deletions June 30, 2025 Year
Governmental Activities:

CFA 2019A Lease Revenue
Refunding Bonds $ 25,350,000 $ (625,000) - $ $ 24,725,000 $ 640,000 Unamortized Bond Discount (622,546) - 24,902 (597,644) - CFA Lease Revenue Bonds
Series 2021A 193,590,639 (6,983,716) - 186,606,923 7,057,084 Leases (See Note 5.B.) 1,911,576 (393,892) - 1,517,684 401,907 Subscriptions (See Note 6) 1,173,533 459,455 (662,087) 970,901 427,775 Total Governmental
Activities $ 221,403,202 $ 459,455 $ (8,639,793) $ 213,222,864 $ 8,526,766 Business-Type Activities:

Wastewater Revenue Refunding
2014 Series A $ 4,395,000 $ (355,000) - $ $ 4,040,000 $ 375,000 Unamortized Bond Premium 262,560 - (26,256) 236,304 -
CFA Lease Revenue Bonds -
Series 2021A 17,499,361 (631,284) - 16,868,077 637,916
Total Business-Type
Activities $ 22,156,921 $ (1,012,540) - $ $ 21,144,381 $ 1,012,916 DRAFT
615

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(81)
NOTE 10 LONG-TERM LIABILITIES (CONTINUED)
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, 2025, the balance outstanding was $24,725,000, with an unamortized discount of $597,644.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

Year Ending June, 30, Principal Interest Total
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 730,000 920,125 1,650,125
2031 - 2035 4,120,000 4,138,025 8,258,025
2036 - 2040 5,030,000 3,227,000 8,257,000
2041 - 2045 6,180,000 2,077,187 8,257,187
2046 - 2049 5,965,000 647,169 6,612,169
Total $ 24,725,000 $ 14,922,787 $ 39,647,787
The following is a summary of the 2019A Lease Revenue Refunding unamortized discount outstanding at June 30, 2025:

Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
$ (622,546) $ - $ 24,902 $ (597,644)
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. For the current year, net revenues were $2,780,560 and debt service requirements were $543,488.

DRAFT
616

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(82)
NOTE 10 LONG-TERM LIABILITIES (CONTINUED)
Wastewater Revenue Bonds 2014, Series A (Continued)
As of June 30, 2025, the balance outstanding was $4,040,000, with an unamortized bond premium of $236,304.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

Year Ending June, 30, Principal Interest Total
2026 $ 375,000 $ 170,738 $ 545,738
2027 395,000 151,988 546,988
2028 405,000 139,150 544,150
2029 430,000 108,150 538,150
2030 450,000 88,400 538,400
2031 - 2034 1,985,000 191,900 2,176,900
Total $ 4,040,000 $ 850,326 $ 4,890,326
The following is a summary of the 2014 Revenue Bond Series A unamortized premium outstanding at June 30, 2025:

Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
$ 262,560 $ - $ (26,256) $ 236,304
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
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 8,220,000 4,880,086 13,100,086
2031 - 2035 43,985,000 21,514,576 65,499,576
2036 - 2040 50,295,000 15,204,638 65,499,638
2041 - 2045 47,065,000 7,525,490 54,590,490
2046 - 2049 22,440,000 1,582,321 24,022,321
Total $ 71,643,325 203,475,000 $ $ 275,118,325
DRAFT
617

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(83)
NOTE 10 LONG-TERM LIABILITIES (CONTINUED)
Community Financing Authority (CFA) Lease revenue Bonds Series 2021A (Continued)
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, 2025:

Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
Deferred Outflows of Resources:

Deferred Loss on Refunding $ 257,077 $ - $ (25,707) $ 231,370 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, 2025, the estimated claims payable for workers' compensation was $15,875,339, which included claims incurred but not reported (IBNR). The current year's portion of the claims was $701,370.

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, 2025, the estimated claims payable for general liability was $8,737,472, which included IBNR. The current year's portion was $346,164. Governmental activities claims and judgments are generally liquidated by the General Fund.

DRAFT
618

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(84)
NOTE 11 RISK MANAGEMENT (CONTINUED)
Liability on
June 30, 2025
General Liability 8,737,472 $
Workers' Compensation 15,875,339
Total Claims Payable 24,612,811 $
Due Within on Year 1,047,534 $
Due in More than One Year 23,565,277
Total Claims Payable 24,612,811 $
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
2023 - 2024
Workers' Compensation $ 13,269,916 $ 4,729,543 $ (3,330,339) $ 14,669,120 $ 611,066 General Liabilities 7,651,470 5,525,923 (3,443,411) 9,733,982 592,111 Total $ 20,921,386 $ 10,255,466 $ (6,773,750) $ 24,403,102 $ 1,203,177 2024 - 2025
Workers' Compensation $ 14,669,120 $ 1,768,814 $ (562,595) $ 15,875,339 $ 701,370 General Liabilities 9,733,982 4,331,546 (5,328,056) 8,737,472 346,164 Total $ 24,403,102 $ 6,100,360 $ (5,890,651) $ 24,612,811 $ 1,047,534 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.

DRAFT
619

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(85)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
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 10.31% 10.31% 10.31% * Closed to new entrants
Required employer unfunded accrued liability contribution for all tiers totaled $230,855.

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 23.280% 23.280% 23.280% * Closed to new entrants
Required employer unfunded accrued liability contribution for all tiers totaled $1,092,771.

DRAFT
620

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(86)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Benefits Provided (Continued)
As of the valuation date of June 30, 2023, the following employees were covered by the benefit terms of the Plan:

Miscellaneous Safety
Inactive Employees or Beneficiaries Currently
Receiving Benefits 555 333
Inactive Employees Entitled to but Not Yet
Receiving Benefits 461 71
Active Employees 299 140
Total 1,315 544
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, 2025, the City made $11,018,065 of employer contributions to the pension plans ($3,262,437 miscellaneous plan and $7,755,628 safety plan).

DRAFT
621

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(87)
NOTE 12 EMPLOYEE RETIREMENT PLANS (CONTINUED)
A. Pension Plans (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability based on the following actuarial methods and assumptions:

Miscellaneous Safety
Valuation Date June 30, 2023 June 30, 2023
Measurement Date June 30, 2024 June 30, 2024
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.

DRAFT
622

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(88)
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.

DRAFT
623

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(89)
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, 2023 - Measurement Date 246,221,717 $ $ 235,951,714 $ 10,270,003 Changes Recognized for the
Measurement Period:

Service Cost 3,725,204 - 3,725,204
Interest on the Total Pension Liability 16,583,730 - 16,583,730 Changes of Benefit Terms - - -
Differences between Expected
and Actual Experience (358,824) - (358,824)
Net Plan to Plan Resource Movement - 1,527 (1,527)
Contributions from the Employer - 2,382,412 (2,382,412) Contributions from the Employees - 1,676,177 (1,676,177) Net Investment Income - 22,020,679 (22,020,679)
Benefit Payments, Including Refunds
of Employee Contributions (14,763,155) (14,763,155) -
Administrative Expense - (191,995) 191,995
Net Changes during 2022-23 5,186,955 11,125,645 (5,938,690) Balance - June 30, 2024 - Measurement Date 251,408,672 $ $ 247,077,359 $ 4,331,313 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 435,373,254 $ $ 403,337,860 $ 32,035,394 Changes Recognized for the
Measurement Period:

Service Cost 6,500,084 - 6,500,084
Interest on the Total Pension Liability 29,894,448 - 29,894,448 Changes of Benefit Terms - - -
Differences between Expected
and Actual Experience 8,101,732 - 8,101,732
Net Plan to Plan Resource Movement - (1,527) 1,527
Contributions from the Employer - 4,975,968 (4,975,968) Contributions from the Employees - 2,294,193 (2,294,193) Net Investment Income - 37,616,876 (37,616,876)
Benefit Payments, Including Refunds
of Employee Contributions (26,944,359) (26,944,359) -
Administrative Expense - (328,197) 328,197
Net Changes during 2022-23 17,551,905 17,612,954 (61,049) Balance - June 30, 2023 - Measurement Date 452,925,159 $ $ 420,950,814 $ 31,974,345 DRAFT
624

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(90)
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 35,508,547 $ 4,331,313 $ (21,498,554) $ Safety Plan 87,959,942 31,974,345 (14,357,437)
Total 123,468,489 $ 36,305,658 $ (35,855,991) $
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, 2024 (the measurement date) and for the reporting period ended June 30, 2025 (the reporting date), the City incurred a pension expense of $4,557,846 and $16,947,891 the miscellaneous and safety plans, respectively.

As of June 30, 2025, 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 $ 3,262,437 $ 7,755,628 - $ $ - Difference Between Expected
and Actual Experience (356,860) - 7,359,087 (256,610)
Change in Assumptions - 1,584,184 - -
Net Difference Between Projected
and Actual Earnings on Pension
Plan Investments 4,901,933 8,840,866 - -
Total $ 8,164,370 $ (356,860) $ 25,539,765 $ (256,610)
DRAFT
625

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(91)
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, 2026. 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 2026 $ 731,271 $ 7,395,965
2027 5,899,219 12,933,709
2028 (859,531) (706,050)
2029 (1,225,886) (2,096,097)
Total $ 4,545,073 $ 17,527,527
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, 2024 (the measurement date).

Number of
Employees
Active Employees 427
Inactives Currently Receiving Benefits 155
Inactives Entitled to But Not Yet Receiving
Benefits 364
Total 946
DRAFT
626

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(92)
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, 2025 the City's contributions were $2,253,553 ($1,282,258 of premium payments, $965,455 of OPEB Trust contributions, $5,840 of non-trust administrative expenses, and a $417,000 implicit subsidy).

Actuarial Methods and Assumptions Used to Determine Net OPEB Liability The City's net OPEB Liability was measured as of June 30, 2024 and update procedures were used to roll forward the total OPEB liability from the valuation date to the measurement date. 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, 2024

6.25% at June 30, 2023
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 None
Changes of Benefit Items None
DRAFT
627

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(93)
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.

DRAFT
628

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(94)
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, 2024 (Measurement
Date June 30, 2023) $ 23,866,032 $ 10,198,784 $ 13,667,248 Changes Recognized for the
Measurement Period:

Service Cost 818,543 - 818,543
Interest 1,492,416 - 1,492,416
Benefit Changes - - -
Actual Versus Expected Experience - - -
Assumption Changes - - -
Contributions - Employer - 1,970,280 (1,970,280)
Net Investment Income - 1,264,693 (1,264,693)
Benefit Payments (1,611,836) (1,611,836) -
Administrative Expense - (10,765) 10,765
Net Changes 699,123 1,612,372 (913,249)
Balance at June 30, 2024 (Measurement
Date June 30, 2023) $ 24,565,155 $ 11,811,156 $ 12,753,999 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, 2024.

Current
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability $ 12,753,999 14,979,776 $ 10,804,222 $ 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, 2024.

Current
Healthcare Cost
1% Decrease Trend Rates 1% Increase
Net OPEB Liability $ 9,746,663 $ 12,753,999 $ 16,769,549 DRAFT
629

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(95)
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, 2025, the City recognized OPEB expense of $1,074,909. As of fiscal year ended June 30, 2025 (June 30, 2024 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 $ 2,253,553 $ -
Differences Between Expected and Actual
Experience 417,281 (2,033,675)
Changes of Assumptions 855,419 (504,782)
Net Difference Between Projected and Actual
Earnings on OPEB Plan Investments 14,663 -
Total $ 3,540,916 $ (2,538,457)
The $2,253,553, 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, 2026. 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
2026 (533,480) $
2027 (147,686)
2028 (438,817)
2029 (351,422)
2030 22,377
Thereafter 197,934
Total (1,251,094) $
DRAFT
630

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(96)
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, 2025:

Expenditures
Contract to Date as of Remaining
Project Name Amount June 30, 2025 Commitments
Seaside Lagoon Revitalization 2,337,516 775,018 1,562,498 Police Ford Vehicles 915,210 - 915,210
Artesia Blvd Intersection Safety 1,041,335 - 1,041,335
Residential Rehab, Cycle 2 2,535,400 60,451 2,474,949
Community Network System 1,694,450 143,663 1,550,787
PCH/Herondo Open Space Project 946,560 - 946,560
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 $174,000. 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.

DRAFT
631

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(97)
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.

DRAFT
632

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(98)
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, 2025 is as follows:

Amounts Due
Balance at Balance at Within One
June 30, 2024 Additions Deletions June 30, 2025 Year
Successor Agency:

County Deferral Loan - 1983
Tax Increment 3,815,688 $ - $ 215,416 $ 3,600,272 $ - $ County Deferral Loan - 1984
Tax Increment 5,093,337 - 357,222 4,736,115 726,999
City Loan - South Bay Center 2,120,000 - 645,000 1,475,000 705,000 Total 11,029,025 $ - $ 1,217,638 $ 9,811,387 $ 1,431,999 $ DRAFT
633

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(99)
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, 2025, was $3,600,272.
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, 2025, was $4,736,115.

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, 2025, the balance outstanding was $1,475,000.

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 2010-2011. As of June 30, 2025, the outstanding balance was $535,731.

DRAFT
634

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(100)
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.

DRAFT
635

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(101)
NOTE 17 RESTATEMENTS
Net Position and Fund Balances as of July 1, 2024 were restated as follows:

Change in
June 30, 2024, Error Accounting June 30, 2024,
As Previously Correction Principle As Adjusted or
Reported (A) (B) Restated
Government-Wide:

Governmental Activities $ 42,481,000 $ (3,641,086) $ (7,804,890) $ 31,035,024 Business-Type Activities 82,276,272 (989,494) (428,211) 80,858,567 Total Primary Government $ 124,757,272 $ (4,630,580) $ (8,233,101) $ 111,893,591 Governmental Funds:

Major Funds:

General Fund $ 36,266,892 $ - $ - $ 36,266,892
Other Intergovernmental Grants Fund (6,362,495) (386,100) - (6,748,595) Low-Mod Income Housing Fund 3,233,452 - - 3,233,452
Nonmajor Funds 38,301,728 (3,254,986) - 35,046,742
Total Governmental Funds $ 71,439,577 $ (3,641,086) $ - $ 67,798,491 Proprietary Funds:

Major Funds
Harbor Tidelands Enterprise Fund $ 21,942,949 $ - $ (286,222) $ 21,656,727 Harbor Uplands Enterprise Fund 22,359,284 - (43,390) 22,315,894 Wastewater Enterprise Fund 36,572,808 - (79,825) 36,492,983 Nonmajor Enterprise Funds 1,401,231 (989,494) (18,774) 392,963 Internal Service Funds 4,137,884 - (181,044) 3,956,840
Total Proprietary Funds $ 86,414,156 $ (989,494) $ (609,255) $ 84,815,407 Fiduciary Funds:

Custodial Funds $ 215,770 $ - $ - $ 215,770
Redevelopment Obligation Retirement Fund (13,107,519) 3,254,987 - (9,852,532) $ (12,891,749) $ 3,254,987 $ - $ (9,636,762)
A. Correction of an Error in Previously Issued Financial Statements During fiscal year 2025, the City identified an error related to historical interfund balances recorded between the Successor Agency Redevelopment Fund (RDA) and the Public Financing Authority (PFA). Certain amounts had continued to be reported in prior periods as due to other funds in the RDA and due from other funds in the PFA, even though the related cash transfers had occurred in prior years. As a result, interfund receivables and payables were overstated. To correct this error, the City eliminated the outstanding due to/due from balances and restated beginning net position/fund balance as of July 1, 2024. The correction decreased the beginning fund balance/net position of the Public Financing Authority by $3,254,988 and increased the beginning fund balance/net position of the Successor Agency Redevelopment Fund by $3,254,988. The correction affected the due from other funds and fund balance/net position line items of the Public Financing Authority and the due to other funds and fund balance/net position line items of the Successor Agency Redevelopment Fund. There was no impact on the City's total governmental activities net position. The effect of correcting this error is shown in column A of the table above.

DRAFT
636

CITY OF REDONDO BEACH

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(102)
NOTE 17 RESTATEMENTS (CONTINUED)
A. Correction of an Error in Previously Issued Financial Statements(Continued) During fiscal year 2025, the City identified errors in the accounting records for certain transit vehicles that had been retired, sold, or otherwise disposed of in prior years but remained recorded in the capital asset records. As a result, capital assets and accumulated depreciation in the other nonmajor Transit enterprise fund were overstated by $2,259,133 and $742,218, respectively, as of July 1, 2024. Because these assets should have been removed from the City’s records in prior years, the net position line item was also overstated. To correct the error, the City removed the retired, sold and disposed vehicle from its capital asset records and restated beginning net position as of July 1, 2024. The correction decreased beginning net position by $989,494. The effect of correcting that error is shown in column A of the table above.

During fiscal year 2025, the City identified an error related to grant revenues associated with the Aviation/Artesia Right Turn Lane Project. In a prior year, the City received reimbursement from the grantor for a right-of-way escrow deposit related to the project.

Following the settlement of the related eminent domain proceedings, the escrow deposit was refunded to the City and determined to be payable back to the grantor. As a result, intergovernmental revenues and the related due to other governments were understated. Consequently, beginning fund balance/net position was overstated. To correct the error, the City recorded the amount due to the grantor and restated beginning fund balance/net position as of July 1, 2024. Accordingly, beginning net position was reduced by $386,100 to reflect the amount due to the grantor. The effect of correcting that error is shown in column A of the table above.

B. Change in Accounting Principle
Effective July 1, 2024, the City implemented GASB Statement No. 101, Compensated Absences. This statement updated the recognition and measurement guidance for compensated absences and associated salary-related payments and amended certain previously required disclosures. As a result of the implementation of this standard, the compensated absences liability as of July 1, 2024 was understated by $7,804,890 in the governmental activities and $428,211 in the business-type activities. The effect of the implementation of this standard is shown in column B of the table above.

DRAFT
637
(102)

REQUIRED SUPPLEMENTARY INFORMATION
DRAFT
638

CITY OF REDONDO BEACH

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2025
(103)
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.

DRAFT
639

CITY OF REDONDO BEACH

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2025
(104)
NOTE 1 BUDGETARY INFORMATION (CONTINUED)
For the fiscal year ended June 30, 2025, the following departments have excess expenditures over appropriations:

Excess on
Expenditure
Over
Expenditures Appropriations Appropriations
General Fund:

Debt Service 574,946 $ 31,082 $ 543,864 $
Other Intergovernmental Grants:

Community Development 67,757 32,500 35,257
Debt Service 67,743 - 67,743
Gas Tax:

Public Works 2,431,989 1,593,926 838,063
Parks and Recreation:

Public Works 3,355 - 3,355
Narcotics Seizure/Forfeiture:

Debt Service 25,354 - 25,354
Proposition C:

Public Works 2,346,154 2,346,154 -
Measure R:

Public Works 943,536 - 943,536
Disaster Recovery:

Public Safety 17,060 447,050 429,990
Housing Authority:

Housing and Community
Development 10,301,573 8,490,587 1,810,986
Park Trust
General Government 331 - 331
Open Space Acquisition
General Government 3,907 - 3,907
Public Financing Authority
Housing and Community
Development 300,731 273,975 26,756
DRAFT
640

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2025
(105)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 36,266,892 $ 36,266,892 $ 36,266,892 $ - $ Resources (Inflows):

Taxes 79,697,278 82,215,919 83,657,491 1,441,572
Interdepartmental 13,809,642 14,737,617 2,420,849 (12,316,768) Licenses and Permits 2,568,953 2,568,953 3,509,054 940,101 Intergovernmental 160,000 160,000 565,494 405,494
Charges for Services 10,607,111 10,667,314 10,245,522 (421,792) Use of Money and Property 3,411,107 3,375,043 4,961,657 1,586,614 Fines and Forfeitures 1,520,814 1,520,814 1,711,773 190,959 Miscellaneous 2,641,941 2,686,114 3,553,135 867,021
Transfers In 4,265,303 4,265,303 2,061,967 (2,203,336)
Subscription Financing - - 267,659 267,659
Amounts Available for Appropriations 154,949,041 158,463,969 149,221,493 (9,242,476) Charges to Appropriation (Outflow):

General Government:

Mayor and City Council 759,009 884,573 636,145 248,428
City Clerk 1,974,976 2,066,825 1,739,056 327,769
City Treasurer 401,286 427,337 320,632 106,705
City Attorney 5,029,303 5,512,876 4,743,832 769,044
City Manager 1,226,715 1,351,062 1,047,802 303,260
Human Resources 2,537,135 2,563,166 2,316,901 246,265
Financial Services 3,148,717 8,883,532 7,206,093 1,677,439 Public Safety:

Police 46,118,418 47,697,732 39,789,983 7,907,749
Fire 18,509,232 20,309,547 19,785,556 523,991
Housing and Community Development:

Community Development 3,620,485 4,082,505 4,304,045 (221,540) Waterfront and Economic Development 292,712 322,857 129,183 193,674 Cultural and Leisure Services:

Community Services 8,674,966 9,097,355 7,372,556 1,724,799 Library 4,355,632 4,627,049 4,338,093 288,956
Public Works 9,211,071 8,215,009 6,912,928 1,302,081
Capital Outlay 25,110 415,364 271,225 144,139
Debt Service:

Principal Retirement 17,863 17,863 552,775 (534,912)
Interest and Fiscal Charges 13,219 13,219 22,171 (8,952) Transfers Out 15,880,783 23,131,908 21,657,252 1,474,656 Total Charges to Appropriations 121,796,632 139,619,779 123,146,228 16,473,551 Budgetary Fund Balance - End of Year $ 33,152,409 $ 18,844,190 $ 26,075,265 $ 7,231,075 DRAFT
641

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

OTHER INTERGOVERNMENTAL GRANTS
YEAR ENDED JUNE 30, 2025
(106)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year, As Restated (6,748,595) $ (6,748,595) $ (6,748,595) $ - $ Resources (Inflows):

Intergovernmental 3,028,500 5,047,408 7,096,579 2,049,171 Use of Money and Property - - 9,270 9,270
Miscellaneous - - 12,839 12,839
Transfers In - - 417,552 417,552
Amounts Available for Appropriations (3,720,095) (1,701,187) 787,645 2,488,832 Charges to Appropriation (Outflow):

General Government - 1,198,069 869,315 328,754
Public Safety 112,380 888,605 600,535 288,070
Community Development - 32,500 67,757 (35,257)
Public Works 89,019 294,909 141,777 153,132
Capital Outlay 8,328,099 19,042,417 5,918,104 13,124,313 Debt Service:

Principal Retirement - - 60,352 (60,352)
Interest and Fiscal Charges - - 7,391 (7,391)
Transfers Out - - 23,700 (23,700)
Total Charges to Appropriations 8,529,498 21,456,500 7,688,931 13,767,569 Budgetary Fund Balance - End of Year (12,249,593) $ (23,157,687) $ (6,901,286) $ (11,278,737) $ DRAFT
642

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

LOW-MOD INCOME HOUSING
YEAR ENDED JUNE 30, 2025
(107)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 3,233,452 $ 3,233,452 $ 3,233,452 $ - $ Resources (Inflows):

Use of Money and Property 271,891 271,891 102,057 (169,834) Charges to Appropriation (Outflow):

Housing and Community Development 150,000 185,163 343,630 (158,467) Cultural and Leisure Services 250,000 250,000 - 250,000 Transfers Out - - 279,000 (279,000)
Total Charges to Appropriations 400,000 435,163 622,630 (187,467) Budgetary Fund Balance - End of Year 3,105,343 $ 3,070,180 $ 2,712,879 $ 17,633 $ DRAFT
643

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
(108)
Fiscal Year 2025 2024 2023 2022 2021
Total Pension Liability:

Service Cost $ 3,725,204 $ 3,441,839 $ 3,349,243 $ 3,267,559 $ 3,426,450 Interest 16,583,730 16,219,473 15,836,385 15,785,975 15,398,568 Difference Between Expected and Actual Experience (358,824) (707,830) (3,768,503) (1,273,036) (1,088,566) Changes of Benefit Terms - 339,225 - - -
Changes of Assumptions - 6,057,682 - - -
Benefit Payments, Including Refunds of
Employee Contributions (14,763,155) (13,567,007) (13,055,631) (12,251,572) (11,856,917) Net Change in Total Pension Liability 5,186,955 5,725,700 8,419,176 5,528,926 5,879,535 Total Pension Liability - Beginning 246,221,717 240,496,017 232,076,841 226,547,915 220,668,380 Total Pension Liability - Ending (a) 251,408,672 246,221,717 240,496,017 232,076,841 226,547,915 Plan Fiduciary Net Position:

Contributions - Employer 2,382,412 2,014,388 70,759,414 6,313,617 5,895,816 Contributions - Employee 1,676,177 1,571,290 1,393,334 1,370,930 1,487,258 Plan to Plan Resource Movement 1,527 (14,324) - - -
Net Investment Income 22,020,679 13,829,787 (18,874,022) 36,083,015 7,811,724 Benefit Payments, Including Refunds of
Employee Contributions (14,763,155) (13,567,007) (13,055,631) (12,251,572) (11,856,917) Administrative Expense (191,995) (170,814) (119,720) (160,659) (222,338) Other Miscellaneous Income (Expense) - - - - -
Net Change in Fiduciary Net Position 11,125,645 3,663,320 40,103,375 31,355,331 3,115,543 Plan Fiduciary Net Position - Beginning 235,951,714 232,288,394 192,185,019 160,829,688 157,714,145 Plan Fiduciary Net Position - Ending (b) 247,077,359 235,951,714 232,288,394 192,185,019 160,829,688 Plan Net Pension Liability (Assets) -
Ending (a) - (b) $ 4,331,313 $ 10,270,003 $ 8,207,623 $ 39,891,822 $ 65,718,227 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 98.28% 95.83% 96.59% 82.81% 70.99% Covered Payroll $ 21,519,482 $ 20,726,906 $ 18,792,136 $ 19,503,029 $ 20,914,206 Plan Net Pension Liability (Asset) as a Percentage
of Covered Payroll 20.13% 49.55% 43.68% 204.54% 314.23% 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 and 2024. 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 longterm 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.

DRAFT
644

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
(109)
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
2020 2019 2018 2017 2016
$ 3,397,192 $ 3,370,814 $ 3,296,064 $ 2,658,781 $ 2,537,587 14,990,021 14,225,068 13,844,417 13,391,115 12,947,817
4,185,447 (291,950) 808,043 (717,631) (58,913)
- - - - -
(1,050,285) - 11,132,579 (3,072,251) -
(11,341,781) (10,849,928) (10,173,782) (9,282,593) (8,784,656) 11,230,879 5,403,719 18,907,321 6,049,672 3,569,584
209,437,501 204,033,782 185,126,461 179,076,789 175,507,205 220,668,380 209,437,501 204,033,782 185,126,461 179,076,789 5,141,337 4,408,505 4,018,170 3,517,596 2,783,258
1,461,551 1,456,828 1,404,270 1,361,650 1,282,878
- (355) - (2,463) 2,745
9,905,031 12,226,183 14,967,632 777,656 3,161,165
(11,341,781) (10,849,928) (10,173,782) (9,282,593) (8,784,656) (108,939) (227,625) (200,883) (85,184) (158,175)
355 (432,265) - - -
5,057,554 6,581,343 10,015,407 (3,713,338) (1,712,785)
152,656,591 146,075,248 136,059,841 139,773,179 141,485,964 157,714,145 152,656,591 146,075,248 136,059,841 139,773,179 $ 62,954,235 $ 56,780,910 $ 57,958,534 $ 49,066,620 $ 39,303,610

71.47% 72.89% 71.59% 73.50% 78.05%
$ 21,343,149 $ 20,156,748 $ 19,613,902 $ 19,222,807 $ 17,124,613 294.96% 281.70% 295.50% 255.25% 229.52%
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 and 2024. 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 longterm 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.

DRAFT
645

CITY OF REDONDO BEACH

SCHEDULE OF PLAN CONTRIBUTIONS
MISCELLANEOUS PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(110)
Fiscal Year 2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 3,262,437 $ 2,347,150 $ 1,995,492 $ 6,865,116 $ 6,314,575 Contribution in Relation to the Actuarially
Determined Contributions (3,262,437) (2,347,150) (1,995,492) (70,759,414) (6,314,575) Contribution Deficiency (Excess) $ - $ - $ (63,894,298) - $ $ - Covered Payroll $ 23,057,196 $ 21,519,482 $ 20,726,906 $ 18,792,136 $ 19,503,029 Contributions as a Percentage
of Covered Payroll 14.15% 10.91% 9.63% 376.54% 32.38%
Notes to Schedule - 2025:

Valuation Date: June 30, 2022
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 2.3%
Payroll Growth 2.8%
DRAFT
646

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
(111)
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 2017 2016
$ 5,895,512 $ 5,140,690 $ 4,399,141 $ 4,018,056 $ 3,517,053 (5,895,512) (5,140,690) (4,399,141) (4,018,056) (3,517,053) $ - $ - $ - $ - $ -
$ 20,914,206 $ 21,343,149 $ 20,156,748 $ 19,613,902 $ 19,222,807

28.19% 24.09% 21.82% 20.49% 18.30%
DRAFT
647

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
(112)
Fiscal Year 2025 2024 2023 2022 2021
Total Pension Liability:

Service Cost $ 6,500,084 $ 6,407,011 $ 6,249,142 $ 5,458,828 $ 5,883,763 Interest 29,894,448 28,719,706 27,763,771 27,413,478 26,796,647 Difference Between Expected and Actual Experience 8,101,732 4,346,921 (1,796,249) (1,214,915) 968,299 Changes of Benefit Terms - 168,350 - - -
Changes of Assumptions - 11,089,291 - - -
Benefit Payments, Including Refunds of
Employee Contributions (26,944,359) (25,555,133) (23,950,891) (23,233,659) (22,018,409) Net Change in Total Pension Liability 17,551,905 14,086,855 19,355,064 8,423,732 11,630,300 Total Pension Liability - Beginning 435,373,254 421,286,399 401,931,335 393,507,603 381,877,303 Total Pension Liability - Ending (a) 452,925,159 435,373,254 421,286,399 401,931,335 393,507,603 Plan Fiduciary Net Position:

Contributions - Employer 4,975,968 4,682,522 155,865,005 12,912,307 11,860,288 Contributions - Employee 2,294,193 2,209,903 1,976,975 1,789,951 1,816,584 Plan to Plan Resource Movement (1,527) 14,324 - - -
Net Investment Income 37,616,876 23,582,718 (32,498,996) 56,472,719 12,249,408 Benefit Payments, Including Refunds of
Employee Contributions (26,944,359) (25,555,133) (23,950,891) (23,233,659) (22,018,409) Administrative Expense (328,197) (293,183) (185,318) (249,533) (347,134) Other Miscellaneous Income (Expense) - - - - -
Net Change in Fiduciary Net Position 17,612,954 4,641,151 101,206,775 47,691,785 3,560,737 Plan Fiduciary Net Position - Beginning 403,337,860 398,696,709 297,489,934 249,798,149 246,237,412 Plan Fiduciary Net Position - Ending (b) 420,950,814 403,337,860 398,696,709 297,489,934 249,798,149 Plan Net Pension Liability (Assets) -
Ending (a) - (b) $ 31,974,345 $ 32,035,394 $ 22,589,690 $ 104,441,401 $ 143,709,454 Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 92.94% 92.64% 94.64% 74.02% 63.48% Covered Payroll $ 18,160,046 $ 16,696,199 $ 15,212,797 $ 18,079,966 $ 18,508,977 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 or 2024. 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 longterm 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.

DRAFT
648

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
(113)
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
2020 2019 2018 2017 2016
$ 5,753,947 $ 5,468,356 $ 5,065,945 $ 4,352,710 $ 4,369,526 25,990,861 24,611,566 23,940,703 23,438,824 22,764,197
9,616,039 817,752 (493,558) (769,075) 854,509
- - - - -
(1,235,646) - 19,087,843 (5,276,514) -
(20,998,140) (20,097,705) (18,716,805) (17,877,775) (17,197,393) 20,362,707 9,564,323 28,884,128 9,144,684 5,514,325
361,514,596 351,950,273 323,066,145 313,921,461 308,407,136 381,877,303 361,514,596 351,950,273 323,066,145 313,921,461 10,499,397 9,310,708 8,431,955 7,448,334 6,493,477
1,753,382 1,887,216 1,592,490 1,457,236 1,397,695
- (559) - 2,463 (2,745)
15,582,752 19,399,983 23,744,382 1,150,020 5,030,896
(20,998,140) (20,097,705) (18,716,805) (17,877,775) (17,197,393) (170,963) (358,575) (317,989) (136,109) (251,346)
559 (680,940) - - -
6,666,987 9,460,128 14,734,033 (7,955,831) (4,529,416)
239,570,425 230,110,297 215,376,264 223,332,095 227,861,511 246,237,412 239,570,425 230,110,297 215,376,264 223,332,095 $ 135,639,891 $ 121,944,171 $ 121,839,976 $ 107,689,881 $ 90,589,366

64.48% 66.27% 65.38% 66.67% 71.14%
$ 18,388,027 $ 17,552,942 $ 16,424,748 $ 15,770,385 $ 15,122,058 737.65% 694.72% 741.81% 682.86% 599.05%
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 or 2024. 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 longterm 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.

DRAFT
649

CITY OF REDONDO BEACH

SCHEDULE OF PLAN CONTRIBUTIONS
SAFETY PLAN – AGENT MULTIPLE-EMPLOYER PLAN
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
(114)
Fiscal Year 2025 2024 2023 2022 2021
Actuarially Determined Contribution $ 7,755,628 $ 4,979,714 $ 4,682,522 $ 14,283,371 $ 12,915,506 Contribution in Relation to the Actuarially
Determined Contributions (7,755,628) (4,979,714) (4,682,522) (155,865,005) (12,915,506) Contribution Deficiency (Excess) $ - $ - $ (141,581,634) - $ $ - Covered Payroll $ 19,455,699 $ 18,160,046 $ 16,696,199 $ 15,212,797 $ 18,079,966 Contributions as a Percentage
of Covered Payroll 39.86% 27.42% 28.05% 1024.57% 71.44% Notes to Schedule- 2025:

Valuation Date: June 30, 2022
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 2.30%
Payroll Growth 2.80%
DRAFT
650

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
(115)
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 2017 2016
$ 11,860,372 $ 10,498,710 $ 9,310,585 $ 8,431,955 $ 7,448,335 (11,860,372) (10,498,710) (9,310,585) (8,431,955) (7,448,335) $ - $ - $ - $ - $ -
$ 18,508,977 $ 18,388,027 $ 17,552,942 $ 16,424,748 $ 15,770,385

64.08% 57.10% 53.04% 51.34% 47.23%
DRAFT
651

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)
(116)
Fiscal Year 2025 2024 2023 2022
Total OPEB Liability:

Service Cost $ 818,543 $ 752,978 $ 732,825 $ 869,592
Interest on the Total OPEB Liability 1,492,416 1,382,435 1,351,025 1,620,655 Difference Between Expected and Actual
Experience - 545,675 (3,732,173) -
Changes in Assumptions - 575,958 - 700,641
Changes in Benefit Terms - -
Benefit Payments (1,611,836) (1,513,984) (1,688,875) (1,741,685) Net Change in Total OPEB Liability 699,123 1,743,062 394,975 (2,282,970) Total OPEB Liability - Beginning 23,866,032 22,122,970 21,727,995 24,010,965 Total OPEB Liability - Ending (a) 24,565,155 23,866,032 22,122,970 21,727,995 Plan Fiduciary Net Position:

Contributions - Employer 1,970,280 1,822,393 2,024,400 1,975,728 Net Investment Income 1,264,693 765,828 (1,612,311) 2,465,620 Benefit Payments (1,611,836) (1,513,984) (1,688,875) (1,741,685) Administrative Expense (10,765) (9,436) (7,783) (8,390) Net Change in Plan Fiduciary Net Position 1,612,372 1,064,801 (1,284,569) 2,691,273 Plan Fiduciary Net Position - Beginning 10,198,784 9,133,983 10,418,552 7,727,279 Plan Fiduciary Net Position - Ending (b) 11,811,156 10,198,784 9,133,983 10,418,552 Plan OPEB Liability (Assets) - Ending (a) - (b) $ 12,753,999 $ 13,667,248 $ 12,988,987 $ 11,309,443 Plan Fiduciary Net Position as a Percentage of the 48.08% 42.73% 41.29% 47.95% Total OPEB Liability
Covered Payroll $ 43,856,027 $ 40,375,037 $ 37,783,818 $ 37,142,464 Plan OPEB Liability (Asset) as a Percentage
of Covered Payroll 29.08% 33.85% 34.38% 30.45%
(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.

DRAFT
652

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)
(117)
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
2021 2020 2019
$ 854,481 $ 911,766 $ 885,210
1,592,234 1,635,748 1,581,920
- (147,110) -
(359,831) (1,415,841) -
- - -
(1,620,198) (1,523,667) (1,868,747)
466,686 (539,104) 598,383
23,544,279 24,083,383 23,485,000
24,010,965 23,544,279 24,083,383
2,214,831 2,217,998 2,191,008
300,557 497,289 469,710
(1,620,198) (1,523,667) (1,868,747)
(9,132) (5,691) (9,679)
886,058 1,185,929 782,292
6,841,221 5,655,292 4,873,000
7,727,279 6,841,221 5,655,292
$ 16,283,686 $ 16,703,058 $ 18,428,091

32.18% 29.06% 23.48%
$ 38,202,693 $ 38,823,317 $ 36,708,000

42.62% 43.02% 50.20%
(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:

There were no assumption changes for measurement date 2024. 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.

DRAFT
653

CITY OF REDONDO BEACH

SCHEDULE OF CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(118)
Fiscal Year 2025 2024 2023 2022
Actuarially Determined Contribution $ 2,253,553 $ 1,970,280 $ 1,822,393 $ 2,024,144 Contribution in Relation to the Actuarially
Determined Contributions (2,253,553) (1,970,280) (1,822,393) (2,024,144) Contribution Deficiency (Excess) $ - $ - $ - $ -
Covered Payroll $ 46,717,585 $ 43,856,027 $ 40,375,037 $ 37,783,818 Contributions as a Percentage of Covered Payroll 4.82% 4.49% 4.51% 5.36% (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 2025 Contribution Rates:

Valuation Date June 30, 2023
Actuarial Cost Method Entry Age Normal
Amortization Valuation Method Level percent of payroll
Amortization Valuation Period 15-year average remaining fixed period for 2024/25 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 DRAFT
654

CITY OF REDONDO BEACH

SCHEDULE OF CONTRIBUTIONS (CONTINUED)
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
(119)
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
2021 2020 2019
$ 1,975,728 $ 2,214,831 $ 2,217,998
(1,975,728) (2,214,831) (2,217,998)
$ - $ - $ -
$ 37,142,464 $ 32,202,693 $ 38,823,317

5.32% 6.88% 5.71%
(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.

DRAFT
655

CITY OF REDONDO BEACH

MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2025
(120)
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, 2023. 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 152 centerline miles of paved surfaces. The City's street system can be grouped by function class as follows: 43 centerline miles of arterial, 13 centerline miles of collector, and 96 centerline miles of local.

In August 2023, 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 ASTM D6433 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.

DRAFT
656

CITY OF REDONDO BEACH

MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2025
(121)
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
2025
67 PCI
61 PCI
Very Good
Good
Poor
Very Poor
Very Good
Good
Poor
Very Poor
47%
36%
17%
0%
47%
36%
17%
0%
The City expended $7,267,255 on street improvement projects for the fiscal year ended June 30, 2025.

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, 2025 through June 30, 2025 is a minimum of $5,780,000.

DRAFT
657

CITY OF REDONDO BEACH

MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2025
(122)
A schedule of budget versus actual for the most recent years since implementation, which preserved City streets at the current 61 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 30,600,262 1,013,516 5,936,824 6,950,340
2024-2025 35,458,657 664,949 11,742,934 12,407,883
DRAFT
658

CITY OF REDONDO BEACH

MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS YEAR ENDED JUNE 30, 2025
(123)
As of June 30, 2025, 48.4% of City streets were rated below the targeted average condition level of 70 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 5,779,978 $ 108,843 $ 288,211 $ 397,054 $ Citywide Curb Ramp Improvements 40399 207,424 - 35,377 35,377 Traffic Calming Project 40470 1,051,687 121,422 229,361 350,783 Bicycle Trans Plan Implementation 40510 820,850 - 640,948 640,948 Artesia/Aviation NB Rt Turn Lane 40780 1,533,185 - 1,860,199 1,860,199 PCH Study Recommendations 40800 2,037,111 - - -
Kingsdale Resurfacing- 182nd/Grant Ave 40880 1,860,300 - 37,559 37,559 Bike Plan Grant - Beryl St. Bike Lanes 40940 136,829 - 104,360 104,360 Bike Plan Grant - N Catalina Bikelane 40941 414,370 - 303,929 303,929 Bike Plan Grant - S Catalina/I Bikelane 40942 44,640 - 38,517 38,517 Bike Plan Grant - Lilienthal Bikelane 40943 282,525 - 224,791 224,791 Bike Plan Grant - Torrance Blvd Bike Lane 40944 215,790 - 187,035 187,035 Bike Plan Grant - Citywide Bike Facilities 40945 853,340 - 574,382 574,382 Inglewood at MBB Rt Turn Lane Feasibility 40960 2,582,967 - 420,696 420,696 Torrance Blvd & Francisca Traffic Signal Mod 41070 2,475 - - - Artesia Blvd Improvements - Phase 1 41080 159,858 - - - Grant Ave Signal Improvements 41090 192,808 166,160 26,649 192,809 Median Reno - PV Blvd/Prospect/MBB 41110 209,825 - 3,800 3,800 Citywide Slurry Seal Program 41140 1,640,423 139,044 561,513 700,557 Kingsdale Avenue Widening 41150 806,172 - 6,827 6,827
Manhattan Beach Boulevard Resurfacing 41160 3,363,177 13,147 2,600,985 2,614,132 Citywide Striping 41180 653,294 - 243,094 243,094
Artesia Blvd Resurfacing - Harper to Hawthorne 41190 360,000 - 360,000 360,000 Citywide Traffic Signal Upgrades 41200 509,015 33,630 475,385 509,015 Torrance Blvd Resurfacing - PCH to Prospect 41230 323,778 - 319,477 319,477 Anita/Herondo & PCH WB RT Turn Lane 41240 2,323,672 - 562,590 562,590 NRB Bikeway Ext - Felton to Inglewood 41250 1,011,287 - 6,512 6,512 NRB Bikeway Ext - Inglewood Design 41260 242,845 - 61,059 61,059 Sidewalk Improvements & Repairs 41270 447,157 71,710 285,000 356,710 Traffic Signal Comm & Network System 41280 2,381,098 - 782,799 782,799 Dow/Vail/Johnston Bicylce Implementaiton Plan 41290 143,500 - - - Residential Street Reconstruction-Deferred Maintenance 41300 749,999 - - - Riviera Village Sidewalk Pavers 41310 509,088 - 501,279 501,279 Artesia Intesection Safety Implementation 41330 797,408 - 600 600 Alleyway Resurfacing with PCI<25 41370 565,000 - - -
Avenue I Resurfacing 41380 51,694 10,993 - 10,993
Pave Emerald Between Juanita to Lucia 41410 194,088
Total $ 35,458,657 $ 664,949 $ 11,742,934 $ 12,407,883
DRAFT
659
(124)

SUPPLEMENTARY INFORMATION
DRAFT
660

CITY OF REDONDO BEACH

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(125)
Special Revenue Funds
Parks and Narcotic
Recreation Seizure /
State Gas Tax Facilities Forfeiture Proposition A
ASSETS
Pooled Cash and Investments 5,489,016 $ 135,838 $ $ 112,106 $ 1,421,649 Receivables:

Accounts 1,020 - - -
Taxes - - - -
Accrued Interest 28,493 - 640 17,069
Notes and Loans - - - -
Leases - - - -
Due from Other Governments 503,517 - - -
Due from Other Funds - - - -
Restricted Assets:

Cash and Investments with Fiscal Agents - - - -
Total Assets $ 6,022,046 $ 135,838 $ 112,746 $ 1,438,718

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts Payable $ 347,200 $ - $ 471 $ -
Unearned Revenue - - - -
Due to Other Funds - - - -
Total Liabilities 347,200 - 471 -

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - - - -
Deferred Leases Related Items - - - -
Total Deferred Inflows of Resources - - - -

FUND BALANCES
Restricted for:

Housing and Community Development - 135,838 1,438,718 - Public Safety - - 112,275 -
Public Works 5,674,846 - - -
Debt Service - - - -
Low and Moderate Income Housing - - - -
Assigned to:

Capital Projects - - - -
Unassigned - - - -
Total Fund Balances 5,674,846 135,838 112,275 1,438,718 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 6,022,046 $ 135,838 $ 112,746 $ 1,438,718 DRAFT
661

CITY OF REDONDO BEACH

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(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
Unearned Revenue
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
$ 2,441,894 3,022,484 $ - $ $ 385,312
- - - -
- - - -
15,239 3,013 - 2,019
- - - -
- - - -
- - - -
- - - -
- - - -
$ 3,037,723 $ 2,444,907 $ - $ 387,331
$ 41,390 $ 55,339 $ - $ 3,344
- - - -
- - 73,332 -
41,390 55,339 73,332 3,344
- - - -
- - - -
- - - -
2,996,333 2,389,568 - 383,987
- - - -
- - - -
- - - -
- - - -
- - - -
- - (73,332) -
2,996,333 2,389,568 (73,332) 383,987
$ 3,037,723 $ 2,444,907 $ - $ 387,331
DRAFT
662

CITY OF REDONDO BEACH

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(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
Unearned Revenue
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
$ 117,077 106,161 $ - $ 477,704 $
- - 13,845 -
31,255 - - -
- - - -
- - 169,764 -
- - - -
- - 89,757 -
- - 10,000 -
- - - -
$ 148,332 106,161 $ 283,366 $ 477,704 $
$ 137,749 8,606 $ 33,119 $ - $
- - - -
- - 73,569 -
137,749 8,606 106,688 -
- - 235,965 -
- - - -
- - 235,965 -
- - - -
- - - 477,704
97,555 - - -
- - - -
- - - -
- - - -
- 10,583 (59,287) -
97,555 10,583 (59,287) 477,704
$ 106,161 $ 148,332 $ 283,366 $ 477,704
DRAFT
663

CITY OF REDONDO BEACH

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(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
Unearned Revenue
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
$ 2,001,689 4,038,894 $ 3,537,602 $ 2,963,205 $
(150) - - -
- - - -
- - 18,605 5,760
- - - -
- - - -
- - - -
- - - -
- - - -
$ 2,001,539 4,038,894 $ 3,556,207 $ 2,968,965 $
$ 25,073 - $ 115,819 $ 517,398 $
- - - 1,974,422
- 2,741,063 - -
25,073 2,741,063 115,819 2,491,820
- - - -
- - - -
- - - -
1,976,466 - - -
- - - -
- - 3,440,388 477,145
- - - -
1,297,831 - - -
- - - -
- - - -
1,297,831 1,976,466 3,440,388 477,145
$ 4,038,894 $ 2,001,539 $ 3,556,207 $ 2,968,965
DRAFT
664

CITY OF REDONDO BEACH

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(129)
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
Unearned Revenue
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
$ 831 6,553,973 $ 255,345 $ 1,104,614 $
- 116,768 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 5,563,243 - -
- - - -
$ 831 12,233,984 $ 255,345 $ 1,104,614 $
$ - 401,540 $ 90,873 $ 8,605 $
- - - -
- - - -
- 401,540 90,873 8,605
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
11,832,444 831 164,472 1,096,009
- - - -
11,832,444 831 164,472 1,096,009
$ 12,233,984 $ 831 $ 255,345 $ 1,104,614
DRAFT
665

CITY OF REDONDO BEACH

COMBINING BALANCE SHEET (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2025
(130)
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
Unearned Revenue
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
$ 6,756 5,625,207 $ 39,797,357 $
- 5,424 136,907
- - 31,255
62 2,152 93,052
- - 169,764
763,502 - 763,502
- 1,475,000 2,068,274
- 544,986 6,118,229
- 55,492 55,492
$ 6,818 8,471,763 $ 49,233,832 $
$ - 3,243 $ 1,789,769 $
- - 1,974,422
- 6,016,960 8,904,924
- 6,020,203 12,669,115
- - 235,965
- 737,209 737,209
- 737,209 973,174
- - 9,320,910
- - 589,979
- - 9,689,934
6,818 1,714,351 1,721,169
- - 1,297,831
- - 13,093,756
- - (122,036)
6,818 1,714,351 35,591,543
$ 8,471,763 $ 6,818 $ 49,233,832
DRAFT
666

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND

BALANCES

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2025
(131)
Special Revenue Funds
Parks and Narcotic
Recreation Seizure /
State Gas Tax Facilities Forfeiture Proposition A

REVENUES
Taxes - $ - $ - $ $ -
Intergovernmental 3,863,082 - 1,794,912 -
Charges for Services - 12,350 - -
Use of Money and Property 241,939 - 5,737 157,205
Fines and Forfeitures - - 14,489 -
Miscellaneous 8,041 - - -
Total Revenues 4,113,062 12,350 20,226 1,952,117

EXPENDITURES
Current:

General Government - - - -
Public Safety - - (18,875) -
Housing and Community Development - - - -
Cultural and Leisure Services - - - -
Public Works 2,431,288 3,355 - -
Capital Outlay 350,000 - - -
Debt Service:

Principal Retirement - - 23,686 -
Interest and Fiscal Charges - - 1,668 -
Total Expenditures 2,781,288 3,355 6,479 -

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,331,774 8,995 13,747 1,952,117

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - (2,926,812) -
Subscription Financing - - - -
Total Other Financing Sources (Uses) - - (2,926,812) -
NET CHANGE IN FUND BALANCES 1,331,774 8,995 13,747 (974,695) Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 4,343,072 126,843 98,528 2,413,413 Error Correction - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 4,343,072 126,843 98,528 2,413,413
Fund Balances (Deficits) - End of Year $ 5,674,846 $ 135,838 $ 112,275 $ 1,438,718 DRAFT
667

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(132)
Special Revenue Funds
Local
Transportation Air Quality
Proposition C Measure R Article 3 Improvement

REVENUES
Taxes - $ - $ - $ $ -
Intergovernmental 1,488,834 1,116,418 - 90,220
Charges for Services - - - -
Use of Money and Property 192,916 87,229 - 17,932
Fines and Forfeitures - - - -
Miscellaneous - - - -
Total Revenues 1,681,750 1,203,647 - 108,152

EXPENDITURES
Current:

General Government - - - -
Public Safety - - - -
Housing and Community Development - - - 45,060
Cultural and Leisure Services - - - -
Public Works 2,346,154 943,536 - -
Capital Outlay 110,000 130,288 - -
Debt Service:

Principal Retirement - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 2,456,154 1,073,824 - 45,060

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (774,404) 129,823 - 63,092

OTHER FINANCING SOURCES (USES)
Transfers In - - - 3,725
Transfers Out - - - -
Subscription Financing - - - -
Total Other Financing Sources (Uses) - - - 3,725
NET CHANGE IN FUND BALANCES (774,404) 129,823 - 66,817
Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 3,770,737 2,259,745 (73,332) 317,170 Error Correction - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 3,770,737 2,259,745 (73,332) 317,170
Fund Balances (Deficits) - End of Year $ 2,996,333 $ 2,389,568 $ (73,332) $ 383,987 DRAFT
668

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(133)
Special Revenue Funds
Street
Landscaping Community
Storm Drain and Lighting Development Disaster
Improvement District Block Grant Recovery

REVENUES
Taxes - $ - $ - $ $ -
Intergovernmental - - 305,146 -
Charges for Services 28,485 1,504,825 23,845 -
Use of Money and Property - - - -
Fines and Forfeitures - - - -
Miscellaneous - 37,214 - 600,149
Total Revenues 28,485 1,542,039 328,991 600,149

EXPENDITURES
Current:

General Government - - - -
Public Safety - - - 447,050
Housing and Community Development - - 122,620 -
Cultural and Leisure Services - - - -
Public Works 2,701,167 - - -
Capital Outlay 200,000 - 243,233 -
Debt Service:

Principal Retirement - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 200,000 2,701,167 365,853 447,050

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (171,515) (1,159,128) (36,862) 153,099

OTHER FINANCING SOURCES (USES)
Transfers In 1,169,711 - - -
Transfers Out - - - -
Subscription Financing - - - -
Total Other Financing Sources (Uses) 1,169,711 - - -
NET CHANGE IN FUND BALANCES (171,515) 10,583 (36,862) 153,099 Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 269,070 - (22,425) 324,605
Error Correction - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 269,070 - (22,425) 324,605
Fund Balances (Deficits) - End of Year $ 97,555 $ 10,583 $ (59,287) $ 477,704 DRAFT
669

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(134)
Special Revenue Funds
Housing Subdivision
Authority Park Trust Measure M Measure W

REVENUES
Taxes - $ - $ - $ $ -
Intergovernmental 10,246,947 1,264,865 - 1,063,747
Charges for Services - - - -
Use of Money and Property 111,853 - 155,320 53,645
Fines and Forfeitures - - - -
Miscellaneous - 500,031 - -
Total Revenues 10,358,800 500,031 1,420,185 1,117,392

EXPENDITURES
Current:

General Government - 331 - -
Public Safety - - - -
Housing and Community Development 10,301,573 - - -
Cultural and Leisure Services - - - -
Public Works - - - 227,894
Capital Outlay 1,831,062 - 559,970 805,178
Debt Service:

Principal Retirement - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 10,301,573 1,831,393 559,970 1,033,072

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 57,227 (1,331,362) 860,215 84,320

OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - (2 - 25,591)
Subscription Financing - - - -
Total Other Financing Sources (Uses) - - (225,591) -
NET CHANGE IN FUND BALANCES 57,227 (1,331,362) 860,215 (141,271) Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 1,240,604 3,307,828 2,580,173 618,416 Error Correction - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 1,240,604 3,307,828 2,580,173 618,416
Fund Balances (Deficits) - End of Year $ 1,297,831 $ 1,976,466 $ 3,440,388 $ 477,145 DRAFT
670

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(135)
Capital Projects Funds
Capital Pier Parking Major
Improvement Structure Facilities Open Space
Projects Rehabilitation Reconstruction Acquisition

REVENUES
Taxes 127,299 $ - $ - $ $ -
Intergovernmental - - - -
Charges for Services 348,317 - - -
Use of Money and Property - - - -
Fines and Forfeitures - - - -
Miscellaneous 144,736 - - -
Total Revenues 620,352 - - -

EXPENDITURES
Current:

General Government - - - 3,907
Public Safety - - - -
Housing and Community Development - - - -
Cultural and Leisure Services - - - -
Public Works 171,138 - - -
Capital Outlay 3,008,314 - 184,505 125,835
Debt Service:

Principal Retirement - - - -
Interest and Fiscal Charges - - - -
Total Expenditures 3,179,452 - 184,505 129,742

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,559,100) (184,505) - (129,742)

OTHER FINANCING SOURCES (USES)
Transfers In 4,957,001 - - -
Transfers Out (108,842) - - -
Subscription Financing 0 - - -
Total Other Financing Sources (Uses) 4,848,159 - - -
NET CHANGE IN FUND BALANCES 2,289,059 (184,505) - (129,742) Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 9,543,385 831 348,977 1,225,751 Error Correction - - - -
Fund Balances (Deficits) - Beginning of Year,
as Restated 9,543,385 831 348,977 1,225,751
Fund Balances (Deficits) - End of Year $ 11,832,444 $ 831 $ 164,472 $ 1,096,009 DRAFT
671

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(136)
Debt Service Funds
Public Total Other
Financing Parking Governmental
Authority Authority Funds

REVENUES
Taxes - $ - $ 127,299 $
Intergovernmental - - 21,234,171
Charges for Services - - 1,917,822
Use of Money and Property 500,024 315 1,524,115
Fines and Forfeitures - - 14,489
Miscellaneous - - 1,290,171
Total Revenues 500,024 315 26,108,067

EXPENDITURES
Current:

General Government - - 4,238
Public Safety - - 428,175
Housing and Community Development 300,731 - 10,769,984
Cultural and Leisure Services - - -
Public Works - - 8,824,532
Capital Outlay - - 7,548,385
Debt Service:

Principal Retirement 7,262,233 - 7,285,919
Interest and Fiscal Charges 5,814,130 - 5,815,798
Total Expenditures 13,377,094 - 40,677,031

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 315 (12,877,070) (14,568,964)

OTHER FINANCING SOURCES (USES)
Transfers In 13,050,449 19,180,886 -
Transfers Out (805,876) (4,067,121) -
Subscription Financing - - -
Total Other Financing Sources (Uses) 12,244,573 15,113,765 - NET CHANGE IN FUND BALANCES (632,497) 315 544,801
Fund Balances (Deficit) - Beginning of Year,
as Previously Presented 5,601,834 6,503 38,301,728
Error Correction (3,254,986) (3,254,986) -
Fund Balances (Deficits) - Beginning of Year,
as Restated 2,346,848 6,503 35,046,742
Fund Balances (Deficits) - End of Year $ 1,714,351 $ 6,818 $ 38,846,529 DRAFT
672

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

STATE GAS TAX
YEAR ENDED JUNE 30, 2025
(137)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 4,343,072 $ $ 4,343,072 $ 4,343,072 $ - Resources (Inflows):

Intergovernmental 3,711,193 3,711,193 3,863,082 151,889 Use of Money and Property 25,000 25,000 241,939 216,939 Miscellaneous 12,000 12,000 8,041 (3,959)
Transfers In - - - -
Amounts Available for Appropriations 8,091,265 8,091,265 8,456,134 364,869 Charges to Appropriation (Outflow):

Public Works 1,593,926 1,593,926 2,431,288 (837,362)
Capital Outlay 1,795,000 1,795,000 350,000 1,445,000
Total Charges to Appropriations 3,466,098 3,466,098 2,781,288 684,810 Budgetary Fund Balance - End of Year $ 4,625,167 $ 4,625,167 $ 5,674,846 $ 1,049,679 DRAFT
673

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

PARKS AND RECREATION FACILITIES
YEAR ENDED JUNE 30, 2025
(138)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 126,843 $ 126,843 $ 126,843 $ - Resources (Inflows):

Charges for Services 31,500 31,500 12,350 (19,150)
Amounts Available for Appropriations 158,343 158,343 139,193 (19,150) Charges to Appropriation (Outflow):

Public Works - - 3,355 (3,355)
Total Charges to Appropriations - - 3,355 (3,355)
Budgetary Fund Balance - End of Year $ 158,343 $ 158,343 $ 135,838 $ (22,505) DRAFT
674

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

NARCOTIC SEIZURE / FORFEITURE
YEAR ENDED JUNE 30, 2025
(139)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 98,528 $ 98,528 $ 98,528 $ - $ Resources (Inflows):

Use of Money and Property 10,000 10,000 5,737 (4,263)
Fines and Forfeitures 20,000 20,000 14,489 (5,511)
Amounts Available for Appropriations 128,528 128,528 118,754 (9,774) Charges to Appropriation (Outflow):

Public Safety 178,699 221,978 (18,875) 240,853
Capital Outlay - 563 - 563
Debt Service:

Principal Retirement - 23,686 - (23,686)
Interest and Fiscal Charges - - 1,668 (1,668)
Total Charges to Appropriations 178,699 222,541 6,479 216,062 Budgetary Fund Balance - End of Year $ (50,171) $ (94,013) $ 112,275 $ 206,288 DRAFT
675

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

PROPOSITION A
YEAR ENDED JUNE 30, 2025
(140)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 2,413,413 $ 2,413,413 $ 2,413,413 $ - $ Resources (Inflows):

Intergovernmental 1,924,059 1,924,059 1,794,912 (129,147) Use of Money and Property 30,000 30,000 157,205 127,205 Amounts Available for Appropriations 4,367,472 4,367,472 4,365,530 (1,942) Charges to Appropriation (Outflow):

Capital Outlay - 75,000 - 75,000
Transfers Out 3,293,124 3,461,124 2,926,812 534,312
Total Charges to Appropriations 3,293,124 3,536,124 2,926,812 609,312 Budgetary Fund Balance - End of Year 1,074,348 $ 831,348 $ 1,438,718 $ 607,370 $ DRAFT
676

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

PROPOSITION C
YEAR ENDED JUNE 30, 2025
(141)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 3,770,737 $ $ 3,770,737 $ 3,770,737 $ - Resources (Inflows):

Intergovernmental 1,595,956 1,595,956 1,488,834 (107,122) Use of Money and Property 120,000 120,000 192,916 72,916 Amounts Available for Appropriations 5,486,693 5,486,693 5,452,487 (34,206) Charges to Appropriation (Outflow):

Public Works - 2,346,154 - (2,346,154)
Capital Outlay 1,800,000 3,145,856 110,000 3,035,856
Total Charges to Appropriations 1,800,000 3,145,856 2,456,154 689,702 Budgetary Fund Balance - End of Year $ 3,686,693 $ 2,340,837 $ 2,996,333 $ 655,496 DRAFT
677

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

MEASURE R
YEAR ENDED JUNE 30, 2025
(142)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 2,259,745 $ $ 2,259,745 $ 2,259,745 $ - Resources (Inflows):

Intergovernmental 1,196,967 1,196,967 1,116,418 (80,549) Use of Money and Property 54,814 54,814 87,229 32,415
Amounts Available for Appropriations 3,511,526 3,511,526 3,463,392 (48,134) Charges to Appropriation (Outflow):

Public Works - - 943,536 (943,536)
Capital Outlay 1,385,000 2,751,779 130,288 2,621,491
Total Charges to Appropriations 1,385,000 2,751,779 1,073,824 1,677,955 Budgetary Fund Balance - End of Year $ 2,126,526 $ 759,747 $ 2,389,568 $ 1,629,821 DRAFT
678

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE
LOCAL TRANSPORTATION ARTICLE 3
YEAR ENDED JUNE 30, 2025
(143)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit - Beginning of Year $ (73,332) $ (73,332) $ (73,332) $ - Resources (Inflows):

Intergovernmental 70,249 70,249 - (70,249)
Amounts Available for Appropriations (3,083) (3,083) (73,332) (70,249) Charges to Appropriation (Outflow):

Capital Outlay - 73,116 - 73,116
Total Charges to Appropriations - 73,116 - 73,116
Budgetary Fund Deficit - End of Year $ (3,083) $ (76,199) $ (73,332) $ 2,867 DRAFT
679

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

AIR QUALITY IMPROVEMENT
YEAR ENDED JUNE 30, 2025
(144)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 317,170 $ 317,170 $ 317,170 $ - Resources (Inflows):

Intergovernmental 88,000 88,000 90,220 2,220
Use of Money and Property 2,000 2,000 17,932 15,932
Transfers In - - 3,725 3,725
Amounts Available for Appropriations 407,170 407,170 429,047 21,877 Charges to Appropriation (Outflow):

Housing and Community Development 100,843 107,212 45,060 62,152 Capital Outlay 85,000 87,955 - 87,955
Debt Service:

Principal Retirement 1,919 1,919 - 1,919
Interest and Fiscal Charges 1,420 1,420 - 1,420
Total Charges to Appropriations 189,182 198,506 45,060 153,446 Budgetary Fund Balance - End of Year $ 217,988 $ 208,664 $ 383,987 $ 175,323 DRAFT
680

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

STORM DRAIN IMPROVEMENT
YEAR ENDED JUNE 30, 2025
(145)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 269,070 $ 269,070 $ 269,070 $ - Resources (Inflows):

Charges for Services 36,000 36,000 28,485 (7,515)
Amounts Available for Appropriations 305,070 305,070 297,555 (7,515) Charges to Appropriation (Outflow):

Capital Outlay - 228,425 200,000 28,425
Total Charges to Appropriations - 228,425 200,000 28,425 Budgetary Fund Balance - End of Year $ 305,070 $ 76,645 $ 97,555 $ 20,910 DRAFT
681

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

STREET LANDSCAPING AND LIGHTING DISTRICT
YEAR ENDED JUNE 30, 2025
(146)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year - $ - $ - $ - $ Resources (Inflows):

Charges for Services 1,523,600 1,523,600 1,504,825 (18,775) Miscellaneous 7,000 7,000 37,214 30,214
Transfers In 1,125,701 1,125,701 1,169,711 44,010
Amounts Available for Appropriations 2,656,301 2,656,301 2,711,750 55,449 Charges to Appropriation (Outflow):

Public Works 2,779,377 2,767,998 2,701,167 66,831
Debt Service:

Principal Retirement 56,005 56,005 - 56,005
Interest and Fiscal Charges 41,445 41,445 - 41,445
Total Charges to Appropriations 2,876,827 2,865,448 2,701,167 164,281 Budgetary Fund Deficit - End of Year (220,526) $ (209,147) $ 10,583 $ 219,730 $ DRAFT
682

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2025
(147)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Deficit - Beginning of Year (22,425) $ (22,425) $ (22,425) $ - $ Resources (Inflows):

Intergovernmental 140,071 140,071 305,146 165,075
Charges for Services - - 23,845 23,845
Amounts Available for Appropriations 117,646 117,646 306,566 188,920 Charges to Appropriation (Outflow):

Housing and Community Development 140,071 151,533 122,620 28,913 Capital Outlay 114,344 346,390 243,233 103,157
Total Charges to Appropriations 254,415 497,923 365,853 132,070 Budgetary Fund Deficit - End of Year (136,769) $ (380,277) $ (59,287) $ 320,990 $ DRAFT
683

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

DISASTER RECOVERY
YEAR ENDED JUNE 30, 2025
(148)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 324,605 $ 324,605 $ 324,605 $ - $ Resources (Inflows):

Charges for Services - - - -
Miscellaneous 19,788 19,788 600,149 580,361
Amounts Available for Appropriations 344,393 344,393 924,754 580,361 Charges to Appropriation (Outflow):

Public Safety 17,060 17,060 447,050 (429,990)
Total Charges to Appropriations 17,060 17,060 447,050 (429,990) Budgetary Fund Balance - End of Year $ 327,333 $ 327,333 $ 477,704 $ 150,371 DRAFT
684

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

HOUSING AUTHORITY
YEAR ENDED JUNE 30, 2025
(149)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 1,240,604 $ 1,240,604 $ 1,240,604 $ - $ Resources (Inflows):

Intergovernmental 8,633,644 9,737,584 10,246,947 509,363 Use of Money and Property - - 111,853 111,853
Transfers In - - - -
Amounts Available for Appropriations 9,874,248 10,978,188 11,599,404 621,216 Charges to Appropriation (Outflow):

Housing and Community Development 8,490,587 8,490,587 10,301,573 (1,810,986) Total Charges to Appropriations 8,490,587 8,490,587 10,301,573 (1,810,986) Budgetary Fund Balance - End of Year 1,383,661 $ 2,487,601 $ 1,297,831 $ (1,189,770) $ DRAFT
685

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

SUBDIVISION PARK TRUST
YEAR ENDED JUNE 30, 2025
(150)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 3,307,828 $ $ 3,307,828 $ 3,307,828 $ - Resources (Inflows):

Miscellaneous 750,000 750,000 500,031 (249,969)
Amounts Available for Appropriations 4,057,828 4,057,828 3,807,859 (249,969) Charges to Appropriation (Outflow):

General Government - - 331 (331)
Capital Outlay 1,941,875 3,811,075 1,831,062 1,980,013
Total Charges to Appropriations 1,941,875 3,811,075 1,831,393 1,979,682 Budgetary Fund Balance - End of Year $ 2,115,953 $ 246,753 $ 1,976,466 $ 1,729,713 DRAFT
686

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

MEASURE M
YEAR ENDED JUNE 30, 2025
(151)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 2,580,173 $ 2,580,173 $ 2,580,173 $ - $ Resources (Inflows):

Intergovernmental 1,356,563 1,356,563 1,264,865 (91,698) Use of Money and Property 30,000 30,000 155,320 125,320 Amounts Available for Appropriations 3,966,736 3,966,736 4,000,358 33,622 Charges to Appropriation (Outflow):

Capital Outlay 1,500,000 3,704,746 559,970 3,144,776
Total Charges to Appropriations 1,500,000 3,704,746 559,970 3,144,776 Budgetary Fund Balance - End of Year $ 2,466,736 $ 261,990 $ 3,440,388 $ 3,178,398 DRAFT
687

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

MEASURE W
YEAR ENDED JUNE 30, 2025
(152)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 618,416 $ 618,416 $ 618,416 $ - Resources (Inflows):

Intergovernmental 710,000 710,000 1,063,747 353,747
Use of Money and Property - - 53,645 53,645
Amounts Available for Appropriations 1,328,416 1,328,416 1,735,808 353,747 Charges to Appropriation (Outflow):

Public Works 317,464 337,636 227,894 109,742
Capital Outlay 397,000 801,615 805,178 (3,563)
Transfers Out 12,937 12,937 225,591 (212,654)
Debt Service:

Principal Retirement 6,618 6,618 - 6,618
Interest and Fiscal Charges 4,897 4,897 - 4,897
Total Charges to Appropriations 738,916 1,163,703 1,258,663 (94,960) Budgetary Fund Balance - End of Year $ 589,500 $ 164,713 $ 477,145 $ 258,787 DRAFT
688

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

CAPITAL IMPROVEMENT PROJECTS
YEAR ENDED JUNE 30, 2025
(153)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 9,543,385 $ $ 9,543,385 $ 9,543,385 $ - Resources (Inflows):

Taxes - - 127,299 127,299
Intergovernmental - - - -
Charges for Services 349,341 349,341 348,317 (1,024)
Miscellaneous - - 144,736 144,736
Subscription Financing - - - -
Transfers In 805,876 4,957,001 4,957,001 -
Amounts Available for Appropriations 10,698,602 14,849,727 15,120,738 271,011 Charges to Appropriation (Outflow):

Public Works 171,282 171,282 171,138 144
Capital Outlay 4,269,621 11,144,314 3,008,314 8,136,000 Transfers Out 25,579 25,579 108,842 (83,263)
Debt Service:

Principal Retirement 13,085 13,085 - 13,085
Interest and Fiscal Charges 9,683 9,683 - 9,683
Total Charges to Appropriations 4,489,250 11,363,943 3,288,294 8,075,649 DRAFT
689

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

MAJOR FACILITIES RECONSTRUCTION
YEAR ENDED JUNE 30, 2025
(154)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year $ 348,977 $ 348,977 $ 348,977 $ - Resources (Inflows):

Transfers In - - - -
Amounts Available for Appropriations 348,977 348,977 348,977 - Charges to Appropriation (Outflow):

Capital Outlay - 828,263 184,505 643,758
Total Charges to Appropriations - 828,263 184,505 643,758 Budgetary Fund Balance - End of Year $ 348,977 $ (479,286) $ 164,472 $ 643,758 DRAFT
690

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

OPEN SPACE ACQUISITION
YEAR ENDED JUNE 30, 2025
(155)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance - Beginning of Year 1,225,751 $ $ 1,225,751 $ 1,225,751 $ - Resources (Inflows):

Miscellaneous - - - -
Amounts Available for Appropriations 1,225,751 1,225,751 1,225,751 - Charges to Appropriation (Outflow):

General Government - - 3,907 (3,907)
Capital Outlay - 202,898 125,835 77,063
Total Charges to Appropriations - 202,898 129,742 73,156 Budgetary Fund Balance - End of Year $ 1,225,751 $ 1,022,853 $ 1,096,009 $ 73,156 DRAFT
691

CITY OF REDONDO BEACH

BUDGETARY COMPARISON SCHEDULE

PUBLIC FINANCING AUTHORITY
YEAR ENDED JUNE 30, 2025
(156)
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance -
Beginning of Year, As Restated $ 2,346,848 $ 2,346,848 $ 2,346,848 $ - Resources (Inflows):

Use of Money and Property 13,376,289 13,376,289 500,024 (12,876,265) Transfers In (15,560,958) 15,560,958 13,050,449 (2,510,509) Amounts Available for Appropriations 162,179 31,284,095 15,897,321 (15,386,774) Charges to Appropriation (Outflow):

Housing and Community Development 273,975 273,975 300,731 (26,756) Debt Service:

Principal Retirement 8,240,000 8,240,000 7,262,233 977,767 Interest and Fiscal Charges 6,515,082 6,515,082 5,814,130 700,952 Transfers Out 805,876 805,876 805,876 -
Total Charges to Appropriations 15,029,057 15,029,057 14,182,970 1,651,963 Budgetary Fund Balance - End of Year $ (14,866,878) $ 16,255,038 $ 1,714,351 $ (13,734,811) DRAFT
692

CITY OF REDONDO BEACH

COMBINING STATEMENT OF NET POSITION

NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2025
(157)
Business-Type Activities - Enterprise Funds
Solid Waste Transit Totals
ASSETS
Current Assets:

Cash and Cash Equivalents $ 2,710,217 $ - $ 2,710,217
Receivables:

Accounts 179,255 2,122 181,377
Taxes 119,192 - 119,192
Due from Other Governments - 99,192 99,192
Restricted Assets:

Cash with Fiscal Agents - 63 63
Total Current Assets 3,008,664 101,377 3,110,041
Noncurrent:

Capital Assets - Net of Accumulated Depreciation/
Amortization 42,772 548,090 590,862
Total Noncurrent Assets 42,772 548,090 590,862
Total Assets 3,051,436 649,467 3,700,903

DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items 213,034 118,577 331,611
Deferred OPEB Related Items 29,062 16,366 45,428
Total Deferred Outflows of Resources 242,096 134,943 377,039

LIABILITIES
Current Liabilities:

Accounts Payable 55,180 383,399 438,579
Accrued Interest 5,048 4,417 9,465
Unearned Revenues - 1,067 1,067
Due to Other Funds - 239,664 239,664
Due to Other Governments - - -
Accrued Compensated Absences 18,792 855 19,647
Long-Term Obligations - Due in One Year 43,092 37,706 80,798 Total Current Liabilities 122,112 667,108 789,220
Noncurrent Liabilities:

Accrued Compensated Absences 92,116 10,222 102,338
Long-Term Debt - Due in More than One Year 1,096,485 959,425 2,055,910 Net Pension Liability 113,017 62,907 175,924
Net OPEB Liability 104,681 58,941 163,622
Total Noncurrent Liabilities 1,406,299 1,091,495 2,497,794 Total Liabilities 1,528,411 1,758,603 3,287,014

DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 9,312 5,183 14,495
Deferred OPEB Related Items 20,835 11,732 32,567
Total Deferred Inflows of Resources 30,147 16,915 47,062

NET POSITION
Net Investment in Capital Assets 42,772 548,090 590,862 Unrestricted 1,692,202 (1,539,198) 153,004
Total Net Position $ 1,734,974 $ (991,108) $ 743,866
DRAFT
693

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2025
(158)
Business-Type Activities - Enterprise Funds
Solid Waste Transit Totals

OPERATING REVENUES
Sales and Service Charges 6,989,157 $ 190,392 $ 7,179,549 $ Miscellaneous 209,107 2,364 211,471
Total Operating Revenues 7,198,264 192,756 7,391,020

OPERATING EXPENSES
Administrative and General 90,985 485,636 576,621
Personnel Services 826,295 473,572 1,299,867
Contractual Services 5,519,269 4,200,709 9,719,978
Internal Service Charges 347,225 483,228 830,453
Depreciation Expense 2,084 236,807 238,891
Total Operating Expenses 6,785,858 5,879,952 12,665,810 OPERATING INCOME (LOSS) (5,687,196) 412,406 (5,274,790)

NONOPERATING REVENUES (EXPENSES)
Intergovernmental 35,035 2,726,384 2,761,419
Interest Expense (30,626) (26,798) (57,424)
Total Nonoperating Revenues (Expenses) 4,409 2,699,586 2,703,995 INCOME (LOSS) BEFORE TRANSFERS (2,987,610) 416,815 (2,570,795) Transfers In 2,926,812 - 2,926,812
Transfers Out (5,114) - (5,114)
CHANGES IN NET POSITION (60,798) 411,701 350,903
Net Position - Beginning of year, as Previously Restated 1,327,169 74,062 1,401,231 Implementation of GASB 101 (3, (14,878) 896) (18,774)
Error Correction (989,494) - (989,494)
Net Position - Beginning of year, as Restated 1,323,273 (930,310) 392,963 NET POSITION - END OF YEAR $ (991,108) 1,734,974 $ 743,866 $ DRAFT
694

CITY OF REDONDO BEACH

COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2025
(159)
Business-Type Activities - Enterprise Funds
Solid Waste Transit Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 7,276,267 $ 222,660 $ 7,498,927 $ Cash Paid to Suppliers for Goods and Services (5,968,107) (5,450,095) (11,418,202) Cash Paid to Employees for Services (770,247) (550,829) (1,321,076) Net Cash Provided (Used) by Operating Activities 537,913 (5,778,264) (5,240,351)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Cash Received from Other Funds - 2,926,812 2,926,812
Principal Paid on Noncapital Debt Issues (42,527) (37,212) (79,739) Interest Paid on Noncapital Debt (30,688) (26,851) (57,539) Grant Subsidies 35,035 2,443,400 2,478,435
Net Cash Provided (Used) by Noncapital
Financing Activities (43,294) 4,623,170 4,579,876

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (7,932) (7,017) (14,949) Net Cash Used by Capital and Related
Financing Activities (7,932) (7,017) (14,949)

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 486,687 (1,162,111) (675,424)
Cash and Cash Equivalents - Beginning of Year 2,223,530 1,162,174 3,385,704 CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,710,217 $ 63 $ 2,710,280

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ 412,406 $ (5,687,196) $ (5,274,790) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation 2,084 236,807 238,891
(Increase) Decrease In:

Accounts Receivable 138,663 29,862 168,525
Taxes Receivable (18,442) - (18,442)
Deferred Outflow Pension Related Items 177,282 151,987 329,269 Deferred Outflow OPEB Related Items 6,794 11,988 18,782 Increase (Decrease) In:

Accounts Payable (25,945) (280,675) (306,620)
Unearned Revenue (42,218) 42 (42,176)
Net Pension Liability (136,594) (110,122) (246,716)
Net OPEB Liability (6,884) (29,282) (36,166)
Deferred Inflow Pension Related Items (16,276) (12,554) (28,830) Deferred Inflow OPEB Related Items (9,005) (11,864) (20,869) Compensated Absences 56,048 (77,257) (21,209)
Net Cash Provided (Used) by Operating Activities $ 537,913 $ (5,778,264) $ (5,240,351) DRAFT
695

CITY OF REDONDO BEACH

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2025
(160)
Governmental Activities - Internal Service Funds
Vehicle Building Information
Replacement Occupancy Technology
ASSETS
Current Assets:

Cash and Cash Equivalents 9,920,207 $ 1,931,793 $ $ 1,674,966 Receivables:

Accounts 32,488 - -
Total Current Assets 9,952,695 1,931,793 1,674,966
Noncurrent:

Capital Assets - Net of Accumulated Depreciation/Amortization 8,611,012 103,432 1,614,784 Total Noncurrent Assets 8,611,012 103,432 1,614,784
Total Assets 18,563,707 2,035,225 3,289,750

DEFERRED OUTFLOWS OF RESOURCES
Deferred Pension Related Items 146,095 343,380 336,420
Deferred OPEB Related Items 23,521 51,550 44,518
Total Deferred Outflows of Resources 169,616 394,930 380,938

LIABILITIES
Current Liabilities:

Accounts Payable 405,959 234,113 96,880
Accrued Interest 8,282 10,456 18,579
Accrued Compensated Absences 13,323 38,571 20,420
Accrued Claims and Judgments - - -
Long-Term Obligations - Due in One Year 72,069 89,262 262,284 Total Current Liabilities 499,633 372,402 398,163
Noncurrent Liabilities:

Accrued Compensated Absences 44,763 123,949 71,611
Accrued Claims and Judgments - - -
Long-Term Debt - Due in More than One Year 1,127,968 2,271,291 2,408,555 Net Pension Liability 77,505 182,168 178,476
Net OPEB Liability 84,722 185,679 160,353
Total Noncurrent Liabilities 1,334,958 2,763,087 2,818,995 Total Liabilities 1,834,591 3,135,489 3,217,158

DEFERRED INFLOWS OF RESOURCES
Deferred Pension Related Items 6,386 15,009 14,705
Deferred OPEB Related Items 16,862 36,956 31,916
Total Deferred Inflows of Resources 23,248 51,965 46,621

NET POSITION
Net Investment in Capital Assets 8,291,966 103,432 1,268,459 Unrestricted 8,583,518 (860,731) (861,550)
Total Net Position $ 16,875,484 $ (757,299) $ 406,909
DRAFT
696

CITY OF REDONDO BEACH

COMBINING STATEMENT OF NET POSITION (CONTINUED)

INTERNAL SERVICE FUNDS
JUNE 30, 2025
(161)
ASSETS
Current Assets:

Cash and Cash Equivalents
Receivables:

Accounts
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
$ 4,380,939 11,318,405 $ 482,806 $ 29,709,116 $
- 3,804 - 36,292
4,380,939 11,322,209 482,806 29,745,408
1,162,655 90,811 1,220,234 12,802,928
1,162,655 90,811 1,220,234 12,802,928
5,543,594 11,413,020 1,703,040 42,548,336
378,683 48,853 - 1,253,431
54,429 5,776 - 179,794
433,112 54,629 - 1,433,225
146,928 1,772,716 21,442 2,678,038
14,725 721 - 52,763
36,832 - - 109,146
- 1,047,534 - 1,047,534
128,269 6,156 - 558,040
326,754 2,827,127 21,442 4,445,521
96,542 - - 336,865
- 23,565,277 - 23,565,277
3,138,085 156,641 - 9,102,540
474,090 25,917 - 938,156
196,053 20,803 - 647,610
23,768,638 3,904,770 34,590,448 -
26,595,765 4,231,524 21,442 39,035,969
2,135 3,805 - 42,040
4,140 39,020 - 128,894
6,275 42,825 - 170,934
90,811 1,008,504 1,215,735 11,978,907
(15,225,202) 693,853 465,863 (7,204,249)
$ (15,134,391) $ 1,702,357 $ 1,681,598 $ 4,774,658
DRAFT
697

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(162)
Governmental Activities - Internal Service Funds
Vehicle Building Information
Replacement Occupancy Technology

OPERATING REVENUES
Sales and Service Charges 4,693,444 $ 3,698,216 $ 5,225,609 $ Miscellaneous 222,456 194 140,750
Total Operating Revenues 4,915,900 3,698,410 5,366,359

OPERATING EXPENSES
Administrative and General 1,773,126 1,586,615 554,396
Personnel Services 662,046 1,484,695 1,159,882
Contractual Services 28,157 451,333 2,207,935
Internal Service Charges 478,970 486,065 1,106,253
Depreciation and Amortization Expense 1,404,797 11,751 404,072 Total Operating Expenses 4,347,096 4,020,459 5,432,538
OPERATING INCOME (LOSS) (322,049) 568,804 (66,179)

NONOPERATING REVENUES (EXPENSES)
Interest Revenue - - -
Interest Expense (35,026) (63,439) (75,567)
Gain (Loss) on Disposal of Capital Assets 47,910 - -
Total Nonoperating Revenues (Expenses) 12,884 (63,439) (75,567) INCOME (LOSS) BEFORE TRANSFERS (385,488) 581,688 (141,746) Transfers In - - -
CHANGES IN NET POSITION (385,488) 581,688 (141,746)
Net Position (Deficit) - Beginning of year, as Previously Restated 16,315,337 (318,327) 577,198 Implementation of GASB 101 (21,541) (53,484) (28,543)
Net Position (Deficit) - Beginning of year, as Restated 16,293,796 (371,811) 548,655

NET POSITION (DEFICIT) - END OF YEAR
DRAFT
$ (757,299) 16,875,484 $ 406,909 $
698

CITY OF REDONDO BEACH

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION

INTERNAL SERVICE FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2025
(163)

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 Nonoperating Revenues (Expenses)

INCOME (LOSS) BEFORE TRANSFERS
Transfers In

CHANGES IN NET POSITION
Net Position (Deficit) - Beginning of year, as Previously Restated Implementation of GASB 101
Net Position (Deficit) - Beginning of year, as Restated

NET POSITION (DEFICIT) - END OF YEAR
Governmental Activities - Internal Service Funds
Self-Insurance Emergency Major Facilities
Program Communications Repair Totals
$ 2,270,304 $ 3,492,526 $ 129,107 $ 19,509,206
5,600,605 - 5,964,005 -
7,870,909 3,492,526 129,107 25,473,211
9,190,462 104,967 13,209,566 -
77,590 2,226,923 5,611,136 -
226,769 395,133 3,309,327 -
421,274 862,984 3,355,546 -
5,067 249,130 24,678 2,099,495
9,921,162 3,839,137 24,678 27,585,070
(2,050,253) (346,611) 104,429 (2,111,859)
48,162 - - 48,162
(4,375) (87,988) - (266,395)
- - - 47,910
43,787 (87,988) - (170,323)
(2,006,466) (434,599) 104,429 (2,282,182)
3,100,000 - 3,100,000 -
1,093,534 (434,599) 104,429 817,818
(16,227,925) 2,214,432 1,577,169 4,137,884
- (77,476) - (181,044)
(16,227,925) 2,136,956 1,577,169 3,956,840
DRAFT
$ (15,134,391) $ 1,702,357 $ 1,681,598 $ 4,774,658
699

CITY OF REDONDO BEACH

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(164)
Governmental Activities - Internal Service Funds
Vehicle Building Information
Replacement Occupancy Technology

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users $ 4,937,866 $ 3,698,410 $ 5,366,359 Cash Paid to Suppliers for Goods and Services (2,039,270) (2,703,052) (4,041,118) Cash Paid to Employees for Services (665,608) (1,480,566) (1,162,122) Net Cash Provided (Used) by Operating Activities 2,232,988 (485,208) 163,119

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Principal Paid on Noncapital Debt (48,443) (88,091) (87,332) Interest Paid on Noncapital Debt (3,207) (63,568) (12,675) Net Cash Provided (Used) by Noncapital
Financing Activities (51,650) (151,659) (100,007)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (3,158,220) - - Principal Paid on Capital Debt (28,977) - (379,239)
Interest Paid on Capital Debt (30,626) - (59,818)
Proceeds from Sale of Capital Assets 72,051 - -
Net Cash Provided (Used) by Capital and Related
Financing Activities (3,145,772) - (439,057)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - - -
Net Cash Provided (Used) by Investing Activities - - -

NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (964,434) (636,867) (375,945)
Cash and Cash Equivalents - Beginning of Year 10,884,641 2,568,660 2,050,911 CASH AND CASH EQUIVALENTS - END OF YEAR $ 9,920,207 $ 1,931,793 $ 1,674,966

NONCASH CAPITAL AND FINANCING ACTIVITIES
Qualifying Lease/Subscription Contracts $ - $ - $ 191,795

RECONCILIATION OF OPERATING INCOME TO

NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss) $ 568,804 $ (322,049) $ (66,179) Adjustments to Reconcile Operating Income to Net
Cash Provided (Used) by Operating Activities:

Depreciation and Amortization 1,404,797 11,751 404,072
(Increase) Decrease In:

Accounts Receivable 21,966 - -
Deferred Outflow Pension Related Items 99,612 252,965 227,021 Deferred Outflow OPEB Related Items 3,194 9,736 2,632
Increase (Decrease) In:

Accounts Payable 231,298 (199,398) (204,431)
Claims and Judgments - - -
Net Pension Liability (79,628) (199,202) (181,851)
Net OPEB Liability 1,599 (5,009) 13,649
Deferred Inflow Pension Related Items (9,722) (24,085) (22,232) Deferred Inflow OPEB Related Items (5,370) (14,046) (7,322) Compensated Absences (3,562) 4,129 (2,240)
Net Cash Provided (Used) by Operating Activities $ 2,232,988 $ (485,208) $ 163,119 DRAFT
700

CITY OF REDONDO BEACH

COMBINING STATEMENT OF CASH FLOWS (CONTINUED)

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2025
(165)

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
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

NONCASH CAPITAL AND FINANCING ACTIVITIES
Qualifying Lease/Subscription Contracts

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
(Increase) Decrease In:

Accounts Receivable
Deferred Outflow Pension Related Items
Deferred Outflow OPEB Related Items
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
$ 8,076,814 $ 3,492,526 $ 129,107 $ 25,701,082
(9,562,205) (1,089,905) (83,919) (19,519,469)
(77,590) (2,283,209) - (5,669,095)
(1,562,981) 119,412 45,188 512,518
(6,075) (121,505) - (351,446)
(4,384) (88,045) - (171,879)
3,089,541 (209,550) - 2,576,675
- (415,560) (224,434) (3,798,214)
- (5,031) - (413,247)
- - - (90,444)
- - - 72,051
- (420,591) (224,434) (4,229,854)
48,162 - - 48,162
48,162 - - 48,162
1,574,722 (510,729) (179,246) (1,140,661)
9,743,683 4,891,668 662,052 30,801,615
$ 11,318,405 $ 4,380,939 $ 482,806 $ 29,660,954
$ - $ - $ - $ 191,795
$ (2,050,253) $ (346,611) $ 104,429 $ (2,111,859)
5,067 249,130 24,678 2,099,495
(3,804) - - 18,162
535,565 155,646 - 1,270,809
40,021 10,599 - 66,182
351,398 146,921 (83,919) 241,869
209,709 - - 209,709
(479,471) (9,645) - (949,797)
(121,694) (6,280) - (117,735)
(15,546) (8,966) - (80,551)
(33,973) (15,096) - (75,807)
- (56,286) - (57,959)
$ (1,562,981) $ 119,412 $ 45,188 $ 512,518
DRAFT
701
(166)

STATISTICAL INFORMATION
(UNAUDITED)
DRAFT
702
Contents Page
Demographic and Economic Information
Operating & Other Information
Overview of the Five Categories Presented in the City's Statistical Section Presented are schedules to assist the reader's understanding of the socioeconomic environment within which the City operates and to help make comparisons over time and with other governments.

Presented are schedules to assist the reader's understanding of how the City's financial information relates to the services provided by the City and the activities it performs.

Debt Capacity
Presented are schedules to assist the reader's understanding of the City's current level of outstanding debt and it's ability to issue additional debt in the future.

Presented are schedules containing trend information to assist in the reader's understanding of how the City's financial performance has changed over time.

Presented are schedules to assist the reader's assessment of the factors affecting the City's ability to generate revenue through property taxes.

Financial Trends
Revenue Capacity
1 DRAFT
703
City of Redondo Beach
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
# 2016 2017 2018 2019
Governmental Activities:

Net investment in capital assets $ 135,628,091 $ 139,053,697 $ 147,515,377 $ 149,571,518 Restricted 26,346,341 22,833,987 24,348,682 36,179,269
Unrestricted (81,186,849) (83,567,317) (118,477,214) (150,061,607) Total governmental activities net position 80,787,583 78,320,367 53,386,845 35,689,180

Business-type activities:

Net investment in capital assets 37,542,589 37,169,598 43,285,102 44,986,964 Restricted - - - -
Unrestricted 24,136,647 28,549,056 24,562,294 23,360,854 Total business-type activities net position 65,718,654 61,679,236 67,847,396 68,347,818 Primary government:

Net investment in capital assets 173,170,680 176,223,295 190,800,479 194,558,482 Restricted 26,346,341 22,833,987 24,348,682 36,179,269
Unrestricted (57,050,202) (55,018,261) (93,914,920) (126,700,753) Total primary government net position 142,466,819 $ 144,039,021 $ 121,234,241 $ 104,036,998 $ NOTE: * In FY 2014-2015, GASB Statement 68 was implemented and contributed to the decrease in net position.

Source: City of Redondo Beach Comprehensive Annual Financial Report, Government-Wide Financial Statements Fiscal Year
2 DRAFT
704
2020 2021 2022 2023 2024 2025
$ 155,670,310 $ 164,993,054 $ 146,082,092 $ 189,024,081 $ 188,122,322 $ 195,052,987 29,323,216 27,392,685 31,365,112 29,038,880 30,222,338 25,332,900 (169,266,411) (175,501,877) (134,974,819) (163,871,388) (175,863,660) (188,967,613) 15,727,115 16,883,862 42,472,385 54,191,573 42,481,000 31,418,274

58,077,077 59,334,911 60,441,156 66,054,613 71,887,538 74,641,943 - - - - - -
18,858,253 16,913,909 18,369,052 16,395,109 10,388,734 7,794,055 76,935,330 76,248,820 78,810,208 82,449,722 82,276,272 82,435,998 213,747,387 224,327,965 206,523,248 255,078,694 260,009,860 269,694,930 29,323,216 27,392,685 31,365,112 29,038,880 30,222,338 25,332,900 (150,408,158) (158,587,968) (116,605,767) (147,476,279) (165,474,926) (181,173,558) $ 92,662,445 $ 93,132,682 $ 121,282,593 $ 136,641,295 $ 124,757,272 $ 113,854,272 (CONTINUED)
Fiscal Year
3 DRAFT
705
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020
Expenses
Government activities:

General government $ 10,946,935 $ 10,846,646 $ 14,142,348 $ 12,380,308 $ 13,574,385 Public Safety 55,489,827 46,362,851 60,845,022 62,740,166 71,807,026 Housing and community development 8,936,256 9,769,288 11,797,299 11,460,619 11,456,603 Cultural and leisure services 11,556,891 12,496,716 14,539,255 12,296,505 11,810,514 Public works 12,616,719 14,135,326 16,496,964 14,655,265 15,373,701 Interest on long-term debt 124,522 80,782 51,658 641,587 1,272,259 Total governmental activities expenses 90,544,174 102,818,585 117,872,546 114,174,450 125,294,488 Business-type activities:

Harbor Tidelands 5,652,988 6,395,134 7,035,921 9,433,807 9,067,251 Harbor Uplands 4,469,890 4,479,269 3,224,093 5,016,104 4,707,797 Wastewater 2,144,353 2,917,527 3,667,593 3,406,302 3,809,885 Solid Waste 3,763,513 3,973,666 3,968,186 4,690,425 4,894,581 Transit 3,536,593 3,626,075 3,844,008 4,004,654 3,975,884 Total business-type activities expenses 19,567,337 21,391,671 21,739,801 26,551,292 26,455,398 Total primary government expenses 110,111,511 124,210,256 139,612,347 140,725,742 151,749,886 Component Units:

Program Revenues
Governmental activities:

Charges for Services:

General government 8,689,834 8,570,506 8,305,869 9,769,717 10,699,014 Public Safety 4,503,948 4,764,211 5,310,033 5,766,102 4,922,828 Housing and community development 2,160,284 3,577,756 3,458,586 3,491,863 3,189,541 Cultural and leisure services 6,606,802 5,837,816 6,709,262 7,283,873 6,609,840 Public works 2,334,537 2,579,475 2,459,268 2,737,458 2,297,396 Operating grants and contributions 8,135,187 8,563,072 8,090,195 10,151,972 10,326,680 Capital grants and contributions 912,045 492,146 1,872,910 485,693 2,882,105 Total governmental activities program revenues 33,342,637 34,384,982 36,206,123 39,686,678 40,927,404 Fiscal Year
4 DRAFT
706
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
2016 2017 2018 2019 2020
Fiscal Year
Business-type activities:

Charges for services:

Harbor Tidelands 6,483,927 6,694,914 6,565,619 6,714,763 5,729,264 Harbor Uplands 5,314,448 5,378,886 5,267,564 6,129,658 4,886,188 Wastewater 5,618,086 5,546,090 5,575,855 5,419,215 5,523,009 Solid Waste 3,832,166 3,792,964 3,836,976 3,965,662 4,330,439 Transit 366,314 344,071 336,962 338,835 250,758
Operating grants and contributions 2,200,958 1,888,902 2,247,490 2,362,021 2,958,743 Capital grants and contributions - - - - -
Total business-type activities program revenues 23,815,899 23,645,827 23,830,466 24,930,154 23,678,401 Total primary government program revenues 57,158,536 58,030,809 60,036,589 64,616,832 64,605,805 Net (expense)/revenue
Governmental activities (57,201,537) (68,433,603) (81,666,423) (74,487,772) (84,367,084) Business-type activities 4,248,562 2,254,156 2,090,665 (1,621,138) (2,776,997) Total primary government net expense (52,952,975) (66,179,447) (79,575,758) (76,108,910) (87,144,081) General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes, levied for general purpose 32,766,493 34,375,818 36,847,562 38,249,535 39,774,170 Transient occupancy taxes 8,627,801 7,689,889 9,172,934 8,816,739 6,335,445 Sales taxes 12,347,884 10,059,087 10,185,208 10,578,527 9,716,883 Franchise taxes 1,963,752 1,706,371 1,896,809 1,647,287 1,706,355 Business licenses taxes 1,186,567 1,201,068 1,322,333 1,295,050 1,251,673 Utility users taxes 7,411,930 7,085,063 6,928,129 6,757,622 6,824,873 Other taxes 731,571 - 632,084 917,102 969,721
Motor vehicle in lieu 27,475 31,132 36,272 32,965 54,193 Investment earnings 1,184,588 3,038,633 3,134,966 5,483,218 5,219,501 Other revenues 2,826,066 1,521,902 1,407,243 2,314,681 1,640,662 Gain (loss) on sale of capital assets 71,254 - - 19,352 - Special item - - - (18,823,249) (1,595,860)
Transfers (784,726) (1,474,147) (1,106,621) (498,722) (7,492,597) Gain (loss) on dissolution of Redevelopment Agency - - - - - Total governmental activities 67,629,084 65,966,387 70,456,919 56,790,107 64,405,019 Business-type activities:

Investment earnings 450,632 99,085 237,280 1,442,556 1,563,880 Gain (loss) on sale of capital assets 11,868 5,606 - 244 - Other revenues 296,269 206,424 282,370 180,038 712,172
Special item - - - - 1,595,860
Transfers 784,726 1,474,147 1,106,621 498,722 7,492,597 Total business-type activities 1,543,495 1,785,262 1,626,271 2,121,560 11,364,509 Total primary government 69,172,579 67,751,649 72,083,190 58,911,667 75,769,528 Change in Net Position
Governmental activities 10,427,547 (2,467,216) (11,209,504) (17,697,665) (19,962,065) Business-type activities 5,792,057 4,039,418 3,716,936 500,422 8,587,512 Totally primary government $ 16,219,604 $ 1,572,202 $ (7,492,568) $ (17,197,243) $ (11,374,553)

Source: City of Redondo Beach Comprehensive Annual Financial Report, Government-Wide Financial Statements
5 DRAFT
707
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Government activities:

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

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

Program Revenues
Governmental activities:

Charges for Services:

General government
Public Safety
Housing and community development
Cultural and leisure services
Public works
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
2021 2022 2023 2024 2025
$ 11,692,177 $ 10,676,673 $ 8,875,247 $ 8,920,293 $ 18,221,312 68,527,338 50,336,195 77,329,726 76,577,489 70,024,156
11,119,995 12,241,640 10,119,877 15,558,950 15,633,339
10,033,842 11,259,954 11,227,624 12,428,392 12,431,744
14,439,178 17,327,400 11,459,350 17,338,480 21,201,707
1,117,677 7,161,637 6,046,346 6,373,477 5,665,240
116,930,207 109,003,499 125,058,170 137,197,081 143,177,498 4,636,895 7,593,555 6,414,101 12,448,283 9,291,961
5,898,608 5,671,184 3,877,153 7,325,917 7,711,582
3,319,536 2,766,293 4,852,027 4,081,219 4,409,338
5,115,305 5,270,585 5,627,344 6,632,516 6,816,484
4,440,739 4,437,245 5,819,936 5,967,261 5,906,750
23,411,083 25,738,862 26,590,561 36,455,196 34,136,115
140,341,290 134,742,361 151,648,731 173,652,277 177,313,613 10,760,125 17,442,962 11,449,964 16,077,714 5,294,790
6,414,431 6,389,408 5,214,506 5,754,175 7,506,303
3,274,369 3,426,571 5,923,067 4,331,471 5,187,122
6,182,448 7,840,440 10,742,331 10,169,027 10,284,419
3,447,892 2,420,262 2,953,076 3,441,632 3,332,452
14,547,505 14,317,249 16,501,962 15,605,821 16,450,153
2,285,961 7,786,097 3,088,905 8,351,492 6,278,915
46,912,731 59,622,989 55,873,811 63,731,332 54,334,154
(CONTINUED)
Fiscal Year
6 DRAFT
708
City of Redondo Beach
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Business-type activities:

Charges for services:

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

Investment earnings
Gain (loss) on sale of capital assets
Other revenues
Special item
Transfers
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Totally primary government
Source: City of Redondo Beach Comprehensive Annual Financial Re Statements
2021 2022 2023 2024 2025
(CONTINUED)
Fiscal Year
7,611,643 4,816,599 7,624,821 8,702,859 8,799,271
4,945,241 6,239,484 5,754,907 7,350,413 7,453,091
5,487,873 5,417,916 5,433,482 5,644,278 5,553,159
4,780,684 5,549,427 6,141,657 6,990,772 7,198,264
- 280 165,196 217,107 192,756
2,853,567 4,291,625 4,191,328 3,382,921 2,761,419
- - - - -
22,883,964 29,110,375 29,311,391 32,288,350 31,957,960
69,796,695 88,733,364 85,185,202 96,019,682 86,292,114
(70,017,476) (49,380,510) (69,184,359) (73,465,749) (88,843,344) (527,119) 3,371,513 2,720,830 (4,166,846) (2,178,155)
(70,544,595) (46,008,997) (66,463,529) (77,632,595) (91,021,499) 43,705,194 44,424,757 45,649,338 48,021,316 50,946,477
3,400,322 5,419,197 6,174,326 9,114,545 9,122,741
10,018,217 11,813,896 11,036,523 10,822,480 11,043,781
1,731,846 1,864,336 2,131,206 1,964,410 1,529,446
1,211,539 1,193,814 1,301,224 1,266,051 1,215,932
6,713,480 8,024,511 9,166,031 8,481,267 8,840,537
1,019,041 1,133,754 1,173,417 1,118,398 1,168,783
49,136 77,111 72,000 86,764 110,718
1,408,878 69,136 3,558,292 6,575,739 6,466,937
1,642,581 714,946 470,103
- - 17,785 115,613 47,910
- - - -
273,989 233,575 138,511 (487,401) (1,266,668)
- - - -
71,174,223 74,969,033 80,888,756 87,079,182 89,226,594
(72,233) (576,550) 1,055,954 2,427,116 2,488,918
- - 1,241 - -
186,831 - - - -
- - - - -
(273,989) (233,575) (138,511) 487,401 1,266,668
(159,391) (810,125) 918,684 2,914,517 3,755,586
71,014,832 74,158,908 81,807,440 89,993,699 92,982,180
1,156,747 25,588,523 11,704,397 13,613,433 383,250
(686,510) 2,561,388 3,639,514 (1,252,329) 1,577,431
$ 470,237 $ 28,149,911 $ 15,343,911 $ 12,361,104 $ 1,960,681 7 DRAFT
709
City of Redondo Beach
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2015 2016 2017 2018 2019
General fund
Nonspendable $ 90,836 $ 87,345 $ 1,013,152 $ 93,705 $ 980,737 Restricted - 3,000,000 - - -
Committed 6,738,848 7,154,237 7,409,689 7,605,573 7,989,184 Assigned 10,500,675 9,303,536 9,134,516 9,431,007 10,999,817 Unassigned 5,786,193 1,694,671 945,992 653,649 753,238
Total general fund 23,116,552 21,239,789 18,503,349 17,783,934 20,722,976

All other governmental funds
Nonspendable 2,749,394 - - - -
Nonspendable, reported in:

Special revenue funds - - - - -
Restricted 12,107,627 22,309,801 18,625,842 20,061,786 17,751,026 Restricted, reported in:

Special revenue funds - - 4,208,145 4,286,896 4,296,752 Debt service funds 6,310,008 - - - 14,131,491
Committed - - - - -
Assigned 6,466,871 2,150,834 2,152,347 2,152,347 2,352,347 Assigned, reported in:

Capital projects funds - 11,112,946 12,372,901 10,057,599 9,158,315 Special revenue funds - - - - -
Unassigned (64,425) (106,954) (66,919) (5,146) (403)
Unassigned, reported in:

Special revenue funds (1,852,352) (1,335,382) (1,453,532) (3,031,772) (2,974,945) Capital projects funds - - - - -
Debt service funds - - - - -
Total all other governmental funds $ 25,717,123 $ 34,131,245 $ 35,838,784 $ 33,521,710 $ 44,714,583 Source: City of Redondo Beach Comprehensive Annual Financial Report, Governmental Fund Financial Statements
Fiscal Year
8 DRAFT
710
(CONTINUED)
2021 2022 2023 2024 2025
General fund
Nonspendable $ 89,771 $ 71,426 $ 169,999 $ 168,352 $ 191,830 Restricted -
Committed 7,241,252 8,599,208 8,599,208 8,599,208 8,599,208 Assigned 8,908,619 20,421,828 24,228,260 25,968,072 11,919,657 Unassigned 2,039,523 271,557 190,951 1,531,260 5,363,677 Total general fund 18,279,165 29,364,019 33,188,418 36,266,892 26,074,372

All other governmental funds
Nonspendable - - - -
Nonspendable, reported in:

Special revenue funds - - - -
Restricted 23,255,534 22,498,317 25,541,166 21,670,204 20,898,654 Restricted, reported in:

Special revenue funds 4,137,151 3,841,655 3,497,714 3,233,452 2,712,879 Debt service funds - 5,025,140 - 5,608,337 1,721,169
Committed - - - -
Assigned 8,013,238 15,208,719 12,960,508 11,118,944 13,093,756 Assigned, reported in:

Capital projects funds - - - - -
Special revenue funds - - - -
Unassigned (310,276) (69,761) (27,960) (95,757) (122,036) Unassigned, reported in:

Special revenue funds (4,008,147) (6,858,755) (6,053,354) (6,362,495) (6,901,286) Capital projects funds - - - - -
Debt service funds - - - - -
Total all other governmental funds $ 31,087,500 $ 39,645,315 $ 35,918,074 $ 35,172,685 $ 31,403,136

Fiscal Year
City of Redondo Beach
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
9 DRAFT
711
City of Redondo Beach
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2016 2017 2018 2019 2020
Revenues:
$ 64,304,427 $ 62,848,867 $ 67,323,695 $ 68,325,779 $ 66,579,120 8,176,790 8,292,178 8,170,297 8,503,283 9,417,289
1,701,786 1,755,119 1,801,502 1,555,407 1,503,909
12,259,088 12,359,047 12,574,428 15,303,534 18,215,129
9,618,003 9,128,589 9,732,500 10,211,917 8,851,688
3,113,269 3,038,633 3,134,966 5,483,218 5,219,501
1,645,777 1,523,928 1,368,615 1,489,424 1,163,678
2,678,261 2,540,369 2,498,976 5,049,393 3,835,968
103,497,401 101,486,730 106,604,979 115,921,955 114,786,282 Expenditures:
10,535,983 10,189,258 9,920,879 11,546,126 12,701,080
52,875,881 50,019,597 57,451,797 58,235,693 61,281,401
9,759,833 9,546,763 10,156,777 11,185,303 11,075,922
11,265,379 11,001,375 11,598,804 11,997,745 10,466,375
11,235,682 11,198,389 11,016,488 11,004,195 11,543,612
4,682,977 3,235,047 7,442,754 5,142,247 19,525,792
- -
745,000 715,000 775,000 805,000 795,000
121,999 152,896 89,856 412,427 1,322,680
- - - - -
101,222,734 96,058,325 108,452,355 110,328,736 128,711,862 263,996 7,439,076 (1,847,376) 5,593,219 (13,925,580)
Other Financing Sources (Uses):
4,031,647 8,464,353 2,326,416 3,701,950 4,918,105
(5,324,544) (9,366,070) (3,372,317) (3,607,949) (3,410,702) - - - - -
- - - - -
- - - 28,015,000 -
- - - (747,056) -
- - - - -
- - - - -
(1,292,897) (901,717) (1,045,901) 27,361,945 1,507,403
- - - (18,823,249) -
$ (1,028,901) 6,537,359 $ (2,893,277) $ 14,131,915 $ (12,418,177) $ Deb 0.94% 0.91% 0.86% 1.17% 1.98%
So
Fiscal Year
10 DRAFT
712
City of Redondo Beach
Last Ten Fiscal Years
(modified accrual basis of accounting)

2021 2022 2023 2024 2025
Revenues:

Taxes $ 67,799,639 $ 73,874,265 $ 76,632,065 $ 80,788,467 $ 83,784,790 Interdepartmental 9,379,851 10,034,053 8,745,517 -
Licenses and permits 1,641,684 1,731,398 2,607,527 2,386,229 3,509,054 Intergovernmental 19,252,605 29,628,555 26,443,713 30,801,108 28,896,244 Charges for services 8,482,823 10,895,140 11,805,303 12,003,162 12,163,344 Use of money and property 69,136 1,408,878 3,558,292 6,528,355 6,597,099 Fines and forfeitures 1,331,574 1,247,572 1,347,895 1,302,666 1,726,262 Other revenues 6,194,701 3,727,529 6,049,378 4,099,103 7,276,994 Total Revenues 115,491,755 131,207,648 137,189,690 137,909,090 143,953,787 Expenditures:

Current:

General government 11,365,610 24,894,820 9,734,103 11,874,752 18,884,014 Public safety 209,643,074 60,812,252 56,313,610 55,693,349 60,605,142 Housing and community development 10,936,532 16,644,042 11,686,810 12,777,662 15,614,599 Cultural and leisure services 9,364,095 15,492,140 11,603,710 11,359,717 11,710,649 Public works 11,522,810 23,081,641 12,372,547 11,319,451 15,879,237 Capital outlay 14,567,037 13,563,804 20,838,116 19,465,587 13,737,714 Debt service: -
Principal 555,000 812,926 7,619,104 7,879,970 7,905,368 Interest 1,095,981 6,046,920 5,937,747 5,906,263 5,839,038 Debt issuance costs - - -
Total Expenditures 119,216,084 311,182,600 138,246,396 134,136,102 150,175,761 Excess of Revenues Over (Under) Expenditures (3,724,329) (179,974,952) (1,056,706) 3,772,988 (6,221,974) Other Financing Sources (Uses):

Transfers in 10,407,106 10,782,356 16,012,542 15,627,017 21,660,405 Transfers out (10,335,494) (10,548,781) (15,853,941) (16,114,418) (26,027,073) Leases 2,245,558 - 980,472 629,752 267,659
Refunding bonds issued - - -
Other debts issued - 197,138,488 -
Bond premium - - -
Refunding bonds redeemed - - -
Gain (loss) on Redevelopment Agency dissolution - - -
Total Other Financing Sources (Uses) 71,612 199,617,621 1,139,073 142,351 (4,099,009) Special item - - - - -
Net Change in Fund Balances $ (3,652,717) $ 19,642,669 $ 82,367 $ 3,915,339 $ (10,320,983) Debt service as a percentage of noncapital expenditures 1.59% 2.37% 13.05% 13.67% 11.20%

Changes in Fund Balances of Governmental Funds
(CONTINUED)
Fiscal Year
11 DRAFT
713
City of Redondo Beach
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Unsecured Exemptions Value
()
2016 13,389,390,286 445,897,750 (74,129,707) 13,761,158,329 2017 14,185,826,554 422,121,124 (72,679,071) 14,535,268,607 2018 14,985,005,088 475,749,665 (72,464,646) 15,388,290,107 2019 15,796,994,740 475,845,459 (72,083,515) 16,200,756,684 2020 16,570,567,490 495,949,088 (43,871,304) 17,022,645,274 2021 17,457,397,477 537,895,062 (55,071,992) 17,940,220,547 2022 18,203,914,759 581,594,262 (79,188,547) 18,706,320,474 2023 19,357,977,502 637,683,663 (101,991,595) 19,893,669,570 2024 21,052,786,773 670,781,411 (94,847,093) 21,628,721,091 2025 21,983,186,998 961,285,206 (143,960,673) 22,800,511,531 Source: HdL Coren & Cone, Los Angeles County Auditor-Controller/Tax Division 2024/2025 Combined Tax Rolls In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

City
12 DRAFT
714
City of Redondo Beach
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Taxable Total
Ended Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Rate
()
2016 481,010,582 48,097,617 - 529,108,199 0.15808
2017 492,828,395 26,806,104 - 519,634,499 0.15834
2018 502,042,344 27,984,358 - 530,026,702 0.15871
2019 522,861,449 26,288,663 - 549,150,112 0.15883
2020 533,318,662 25,264,657 - 558,583,319 0.16317
2021 683,183,671 22,737,911 - 705,921,582 0.16331
2022 537,056,295 19,303,263 - 556,359,558 0.16340
2023 599,090,312 19,730,213 - 618,820,525 0.16353
2024 611,072,093 21,300,750 632,372,843 0.16365
2025 501,514,284 20,959,934 522,474,218 0.16376
(CONTINUED)
Redevelopment
13 DRAFT
715
City of Redondo Beach
Direct and Overlapping Property Tax Rates
(Rate per $100 of taxable value)
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City basic rate 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 0.16539 Overlapping Rates:

Los Angeles County Detention
Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000

Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00700 Community College 0.01745 0.02294 0.02120 0.02223 0.02155 0.02362 0.02264 0.02299 0.02116 0.02101 Unified School District 0.09174 0.09079 0.08630 0.08086 0.08428 0.08430 0.07201 0.07711 0.07234 0.06868

Total Direct Rate 0.15808 0.15834 0.15871 0.15883 0.16317 0.16331 0.16340 0.16353 0.16365 0.16376 Total Direct Rate is the weighted average of all individual direct rates applied by the City of Redondo Beach.

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

Source: HdL Coren & Cone, Los Angeles County Assessor 2024/2025 Tax Rate Table Notes: General fund tax rates are representative and based upon the direct and overlapping rates for the largest general fund tax rate area (TRA) by net taxable value.

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

1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage to assessed property values for the payment of any voter Fiscal Year
14 DRAFT
716
City of Redondo Beach
Principal Property Taxpayers
Current Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Northrop Grumman Systems Corporation 910,971,398 $ 4.00% 491,627,751 $ 3.44% South Bay Center SPE LLC * 186,254,840 0.82% 238,842,252 1.67% Rexford Industrial Inc 109,407,695 0.48% - 0.00%
Ray Pellegrino Trust * 85,280,160 0.37% 0.00%
The Kobe Group Inc 85,205,677 0.37% 72,314,057 0.51%
Extra Space Properties Two LLC 81,697,376 0.36% - 0.00% Noble House Recp Hotel Venture LLC 79,210,694 0.35% 65,935,486 0.46% 9300 Willshire LLC Et Al * 70,800,718 0.31% - 0.00%
Terreno Santa Fe LLC 62,733,048 0.28%
Redondo Beach Distribution Center LLC 60,002,289 0.26% 43,859,140 0.31% LPF Redondo Beach Inc * - 0.00% 46,676,555 0.33%
AES Redondo Beach LLC - 0.00% 142,903,823 1.00%
HPT IHG 2 Properties Trust * - 0.00% 45,626,976 0.32%
MKEG P LLC 0.00% 39,433,582 - 0.28%
SCG 616 Esplanade Street LLC - 0.00% 34,951,994 0.24%
$ 7.59% 1,222,171,616 1,731,563,895 $ 8.55%
NOTE: The amounts shown above include assessed value date for both the City and the Successor Agency (former Redevelopment Agency). * (Pending appeals on parcels)
Source: HdL Coren & Cone, Los Angeles County Assessor 2023/2024 Combined Tax Rolls 2025 2016
15 DRAFT
717
City of Redondo Beach
Property Tax Levies and Collections
Fiscal Year Total Tax Collections
Ended Levy for Percentage of in Subsequent Percentage
June 30 Fiscal Year Amount Levy Years Amount of Levy
2016 32,883,797 32,440,070 98.65% 405,762 32,845,833 99.88% 2017 34,125,966 33,690,049 98.72% 388,499 34,078,548 99.86% 2018 35,718,202 35,230,091 98.63% 383,301 35,613,392 99.71% 2019 37,267,914 36,719,102 98.53% 364,627 37,083,729 99.51% 2020 39,182,819 38,271,140 97.67% 404,113 38,675,253 98.70% 2021 40,917,175 40,165,051 98.16% 602,163 40,767,215 99.63% 2022 42,386,631 41,678,608 98.33% 594,526 42,273,134 99.73% 2023 45,094,012 44,393,742 98.45% 574,364 44,968,106 99.72% 2024 47,343,461 46,406,198 98.02% 890,817 47,297,014 99.90% 2025 49,584,654 48,541,865 97.90% 218,160 48,760,025 98.34% Source: County of Los Angeles Auditor-Controller
Last Ten Fiscal Years
Total Collections to Date
Collected within the
Fiscal Year of the Levy
16 DRAFT
718
City of Redondo Beach
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Refunding Wastewater Total Percentage
Fiscal Revenue Capital Revenue Revenue Construction Capital Primary of Personal Per Year Bonds Loans Leases Subscriptions Bonds Bonds Loans Leases Government Income Capita 2016 2,815,570 565,029 - - 7,232,606 1,721,727 - 58,404 12,393,336 0.35% 180 2017 2,047,784 253,265 - - 6,951,350 1,383,372 - 10,635,771 - 0.30% 154 2018 1,250,000 - 28,902 - 6,660,094 1,029,790 - - 8,968,786 0.24% 131 2019 27,712,944 - - - 6,353,838 660,298 - 34,727,080 - 0.91% 507 2020 26,942,846 186,587 - - 6,037,582 274,194 - 33,441,209 - 0.84% 499 2021 26,411,918 - 96,652 - 5,711,326 - - 32,219,896 - 0.76% 485 2022 233,296,498 2,002,632 - - 5,375,070 18,750,322 - 259,424,522 - 6.02% 3,761 2023 225,831,468 1,754,910 - 985,983 5,023,814 18,126,085 - 251,722,260 - 5.26% 3,680 2024 218,318,093 1,911,576 - 1,173,533 4,657,560 17,499,361 - 243,560,123 - 4.71% 3,569 2025 210,734,279 1,517,684 970,901 4,276,304 16,868,077 - 234,367,245 - 4.25% 3,442 Source: Note 10 of the Notes to Financial Statements
Governmental Activities Business-type Activities
17 DRAFT
719
City of Redondo Beach
Direct and Overlapping Governmental Activities Debt
June 30, 2025
City Assessed Valuation $ 22,800,511,531
Estimated
Share of
Percentage Outstanding Overlapping
Applicable Debt 6/30/25 Debt
Direct Debt:

Community Financing Authority Lease Revenue Bonds 2021A 100% 211,090,000 211,090,000 Community Financing Authority Lease Revenue Refunding Bonds 2019A 100% 24,725,000 24,725,000 Community Financing Authority 2019A Unamortized Bond Premium 100% (597,644) (597,644) Total direct debt $ 235,217,356 $ 235,217,356
Overlapping Debt:
* Metropolitan Water District 0.560% 17,155,000 96,068
Los Angeles County General Fund Obligations 1.085% 3,036,637,390 32,947,516 Los Angeles County Superintendent of Schools Certificates of Participation 1.085% 2,331,775 25,300 El Camino Community College District 14.426% 480,045,366 69,251,344 Redondo Beach Unified School District 100% 264,694,558 264,694,558 Total overlapping debt $ 3,800,864,089 $ 367,014,786
Total direct and overlapping debt $ 602,232,142
NOTE: * This fund is a portion of a larger agency and is responsible for debt in areas outside the City.

Source: CalMuni, Los Angeles County Assessor and Auditor Combined 2024/2025 Lien Date Tax Rolls 19 DRAFT
720
City of Redondo Beach
Legal Debt Margin Information
Last Ten Fiscal Years
2016 2017 2018 2019 2020
Debt limit $ 2,143,539,979 $ 2,258,235,466 $ 2,387,747,521 $ 2,512,486,019 $ 2,637,184,289 Total net debt applicable to limit - - - - -
Legal debt margin 2,143,539,979 2,258,235,466 2,387,747,521 2,512,486,019 2,637,184,289 Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0%
Source: CalMuni
Fiscal Year
20 DRAFT
721
City of Redondo Beach
Legal Debt Margin Information
Last Ten Fiscal Years
2021 2022 2023 2024 2025
$ 2,796,921,319 $ 2,889,402,005 $ 3,076,873,514 $ 3,244,308,164 $ 3,420,076,730 - - -
2,796,921,319 2,889,402,005 3,076,873,514 $ 3,244,308,164 $ 3,420,076,730 0% 0% 0% 0% 0%
Fiscal Year
(CONTINUED)
21 DRAFT
722
City of Redondo Beach
Pledged-Revenue Coverage
Last Ten Fiscal Years
Wastewater Revenue Bonds
Less Net
Fiscal Year Ended Wastewater Operating Available Debt Service June 30, Revenue Expenses Revenue Principal Interest Coverage 2016 5,320,916 1,575,501 3,745,415 245,000 301,988 6.85 2017 5,475,892 2,283,864 3,192,028 255,000 289,738 5.86 2018 5,521,455 2,597,120 2,924,335 265,000 279,538 5.37 2019 5,364,859 2,751,925 2,612,934 280,000 268,938 4.76 2020 5,455,997 3,148,875 2,307,122 290,000 257,189 4.22 2021 5,368,274 2,768,598 2,599,676 300,000 246,138 4.76 2022 5,332,000 2,257,488 3,074,512 310,000 234,138 5.65 2023 5,344,095 3,416,672 1,927,423 325,000 221,738 3.53 2024 5,527,389 3,105,683 2,421,705 340,000 205,488 4.44 2025 5,423,711 2,643,151 2,780,560 355,000 188,488 5.12

NOTE: *The Redondo Beach Public Financing Authority issued the Wastewater System Financing Project Revenue Bonds in fiscal year 2003/2004.

It was replaced in fiscal year 2013-14 with the issue of the 2014 Wastewater Refunding Revenue Bonds.

Source: City of Redondo Beach
22 DRAFT
723
City of Redondo Beach
Demographic and Economic Statistics

Per
Personal Capita
Calendar Income * Personal Unemployment
Year Population (in thousands) Income * Rate **
2016 68,844 3,562,911 51,269 5.0%
2017 68,907 3,587,933 52,069 4.7%
2018 68,677 3,707,238 53,980 4.1%
2019 68,473 3,835,542 56,015 4.0%
2020 66,994 3,961,378 59,130 13.6%
2021 66,484 4,215,803 63,410 7.4%
2022 68,972 4,311,229 62,506 6.5%
2023 68,407 4,789,934 70,021 3.9%
2024 68,239 5,175,396 75,842 4.1%
2025 68,091 5,518,080 81,039 5.3%
Sources: HdL Coren & Cone, Los Angeles
California State Department of Finance
US Census Bureau
June 30, 2025
NOTES:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey 23 DRAFT
724
City of Redondo Beach
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Employment Employees Employment
Northrup Grumman Corporation 6,845 18.78% 4,591 14.14%
Redondo Beach Unified School District 954 2.62% 710 3.06% City of Redondo Beach 458 1.26% 431 1.32%
United States Postal Service 152 260 0.80%
The Cheesecake Factory 261 261 0.80%
Target Stores 217 217 0.67%
Macy's 171 203 0.63%
Frontier 164 - -
Ralph's Grocery 120 - -
Von's Grocery 117 - -
Crowne Plaza Redondo Beach 1.04% 339
Nordstrom, Inc. - - 0.77% 251
DHL Global Forwarding - - 0.64% 209
Sources: City of Redondo Beach
2025 2016
24 DRAFT
725
City of Redondo Beach
Full-Time City Government Employees by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General Government 51 53 54 54 51 48 54 54 57 61
Public Safety
Police
Officers 96 96 96 96 95 92 95 95 96 98
Civilians 58 58 58 58 58 53 58 58 59 59
Fire
Firefighters and Officers 62 62 62 62 62 56 59 59 63 64 Civilians 3 3 555 45556
Public Works 111 112 112 110 109 104 108 108 114 114
Cultural and Leisure Services 34 33 33 32 31 26 29 29 34 35 Housing & Community Development 17 17 18 18 18 16 14 14 18 17 Harbor, Business, & Transit 4 4 443 33344
TOTAL 436 438 442 439 432 402 425 425 450 458
Source: City of Redondo Beach
Fiscal Year
25 DRAFT
726
City of Redondo Beach
Operating Indicators by Function
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public Safety
Police
Physical arrests 2,146 2,325 2,490 2,184 2,108 1,497 2,022 1,693 1,966 2,515 2,632 Traffic citations issued 4,516 3,898 4,699 4,220 4,015 2,651 3,386 2,932 3,489 3,045 3,959 Fire
Number of runs - rescues 4,604 4,702 5,025 4,665 4,791 4,472 4,561 5,503 5,555 5,790 5,591 Number of runs - structures & other 1,989 2,115 2,107 2,605 2,602 2,833 2,890 2,530 3,002 2,038 1,923 Public Works
Street rehabilitation (miles) 1.1 2.4 - 4.1 0.7 1.4 4.1 - 4.6 0.1 1.0 Culture and Leisure Services
Library
Number of items borrowed 584,643 545,316 476,837 479,575 447,966 402,964 242,530 411,909 420,318 378,465 435,100 Number of visitors 350,958 343,395 332,181 308,542 314,093 210,999 18,821 134,103 177,873 208,071 202,148 Recreation and Community Services
Admissions - Seaside Lagoon 81,328 87,422 79,833 79,856 60,419 - * - * 35,367 42,020 - ** 45,263 Number of facility rentals - Seaside Lagoon 381 388 378 382 422 - * - * 765 275 433 433 Housing & Community Development
Number of permits issued 3,295 6,899 3,435 3,522 3,172 2,655 5,651 3,023 - ** 2,234 2,161 Number of plan checks issued 1,559 4,200 2,492 2,436 2,060 2,038 3,997 1,294 - ** 451 638 Number of inspections 10,326 12,827 12,276 11,748 17,007 9,723 19,130 10,372 - ** 7,757 9,026 Number of real estate reports 973 1,925 861 814 807 672 1,559 800 - ** 451 348 Number of bus boardings - Transit 415,259 407,272 383,112 375,545 367,087 288,912 166,176 295,365 277,558 260,615 265,919 Revenue miles - Transit 459,468 458,198 448,682 448,541 448,016 414,401 365,731 437,141 436,056 418,534 418,182 NOTE: * Seaside Lagoon did not operate for the 2019-2020 fiscal year and reopened June 18, 2021 due to the COVID-19 closure. ** Information not provided
Source: City of Redondo Beach - Financial Services Department Fiscal Year
26 DRAFT
727
City of Redondo Beach
Capital Asset Statistics by Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
Public Safety
Police:

Stations 1 1 1 1 1 1 1 111
Sub-station 1 1 1 1 1 1 1 111
Fire Stations 3 3 3 3 3 3 3 333
Public Works
Streets (miles) 127 127 127 127 127 127 127 127 127 127 Streetlights * 1892 1892 1892 1892 1892 1892 1899 1899 1899 1899 Street Traffic Controllers 84 84 84 84 84 84 84 84 84 84 Sanitary sewers (miles) 112 112 112 112 112 112 112 112 112 112 Culture and Leisure Services
Parks 15 15 15 15 15 15 15 15 15 15
Parkettes 13 13 13 13 13 13 13 13 13 13
Total Park Acreage 143.26 143.26 143.26 143.26 143.26 143.26 143.26 143.26 143.26 143.26 Boat Slips 1509 1509 1509 1509 1509 1509 1509 1509 1509 1509 Harbor acreage:

Total water area (exclusive of the pier) 107 107 107 107 107 107 107 107 107 107 Total land area 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 Libraries 2 2 2 2 2 2 2 222
Community Centers 5 5 5 5 5 5 5 555
NOTE: * Methodology modification made in fiscal year 2004/2005 to reflect city-owned street lights only.

Source: City of Redondo Beach
Fiscal Year
27 DRAFT
728
City of Redondo Beach
Certification of Continuing Disclosure
Redondo Beach Community Financing Authority 2014 Wastewater Refunding Revenue Bonds (Wastewater System Financing Project)
June 30, 2025
2014A
This Certification of Continuing Disclosure is provided by the City of Redondo Beach (“the City”) and the Redondo Beach Community Financing Authority through US Bank, as Dissemination Agent pursuant to a Continuing Disclosure Certificate dated March 25, 2014 executed and delivered by the City of Redondo Beach and the Community Financing Authority and the Dissemination Agent in connection with the issuance of $7,230,000 Refunding Revenue Bonds, City of Redondo Beach Wastewater System Financing Project Bonds (“the Bonds”). The Bonds were issued pursuant to an Indenture of Trust dated as of March 25, 2014 between the Financing Authority and US Bank. The proceeds of the Bonds were issued to provide funds to (a) finance the Improvements and related facilities which constitute part of the Wastewater Enterprise of the City, (b) fund capitalized interest on the Bonds through November 1, 2014, (c) fund a reserve fund for the Bonds, and (d) pay the cost of issuance for the Bonds.

This Certification is made pursuant to the requirements of Section 3(a) of the Continuing Disclosure Certificate with respect to the 2024-25 fiscal year.

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

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

2. During the fiscal year ended June 30, 2025, neither the City nor the Community Financing Authority has given or caused to be given notice of the occurrence of any of the following events:
a. Principal and interest payment delinquencies;
b. Non-payment related defaults;
c. Unscheduled draws on debt service reserves reflecting financial difficulties; d. Unscheduled draws on credit enhancements reflecting financial difficulties; e. Substitution of credit or liquidity providers, or their failure to perform; f. Adverse tax opinions or events affecting the tax-exempt status of the security; g. Modifications to rights of security holders;
h. Contingent or unscheduled bond calls;
i. Defeasances;
j. Resale, substitution, or sale of property securing repayment of the securities; or k. Rating changes
28 DRAFT
729
Sewer Rates Per Month
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Use Classification
Each single family dwelling unit 16.25$ 16.25$ 16.25$ 16.25$ 16.25$ 16.25$ 16.25$ 16.25 16.25 16.25 Each unit in a 2-3 unit condo structure 16.25 16.25 16.25 16.25 16.25 16.25 16.25 16.25 16.25 16.25 Each unit in a 2-3 unit apartment structure 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 Each unit in a 4 or more unit condo structure 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 12.64 Each unit in a 4 or more unit apartment structure 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 8.70 Commercial/Industrial/Institutional parcels ** 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 * 1.39 1.39 1.39 Source: City of Redondo Beach
City of Redondo Beach
Last Ten Fiscal Years
* Per 100 cubic feet of average monthly water usage. 100 cubic feet of water is equal to 748 gallons, average monthly water usage is established based on the latest actual annual water usage record available to the City. On an annual basis, the city will recalculate the monthly charge by using the latest available annual water usage record of each non-residential user at the same $1.13 per 100 cubic feet rate to set a new monthly rate. Any water proven to be used for boilers, cooling towers or similar devises that will not be discharged into the sewer system may be deducted from the annual water usage record for rate calculation purposes.

NOTE: The Redondo Beach Public Financing Authority issued the Wastewater System Financing Project Revenue Bonds in fiscal year 2003/2004. A reissue of the Bonds was done in fiscal year 2013/2014 by the Community Financing Authority. 29 DRAFT
730
City of Redondo Beach
Top Ten Customers - Sewage Usage
June 30, 2025
% of
Account Name Usage (ccf) Billed Amount Revenue
9300 WILSHIRE LLC ET AL 150,127 $208,677 3.8%
NORTHROP GRUMMAN SYSTEMS CORP 45,419 $63,132 1.1%
HPTMI PROPERTIES TRUST 14,276 $19,844 0.4%
SOUTH BAY CENTER SPE LLC 12,357 $17,176 0.3%
HAAGEN REDONDO LLC 9,952 $13,833 0.2%
REDONDO DISTRIBUTION CENTER LLC 7,715 $10,724 0.2%
LPF REDONDO BEACH INC 5,024 $6,983 0.1%
ARTESIA OPERATING ASSOCIATES LLC 4,921 $6,840 0.1%
SEVEN J INVESTMENT CO 4,802 $6,675 0.1%
SEVEN J INVESTMENT CO * 4,802 $6,675 0.1%

6.5%
30 DRAFT
731
City of Redondo Beach
Sewer Connections by Type of Customer
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Type of Customer
Residential 13,105 13,111 13,113 13,114 13,116 13,117 13,121 13,123 13,123 13,056 Industrial 59 59 59 58 57 57 57 53 53 63
Commercial 462 464 463 465 465 464 458 456 456 546
Institutional 59 58 58 57 56 56 56 56 56 74
Mixed use 43 43 43 43 43 43 44 44 44 40
Total 13,728 13,735 13,736 13,737 13,737 13,737 13,736 13,732 13,732 13,779 NOTE: The Redondo Beach Public Financing Authority issued the Wastewater System Financing Project Revenue Bonds in fiscal year 2003/2004.

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

Source: City of Redondo Beach
31 DRAFT
732
City of Redondo Beach
Certification of Continuing Disclosure
Redondo Beach Community Financing Authority Lease Revenue Refunding Bonds Series 2019A (Leaseback Agreement)
June 30, 2025
This Certification of Continuing Disclosure is provided by the City of Redondo Beach (“the City”) and the Redondo Beach Community Financing Authority through Kosmont Transactions Services, as Dissemination Agent pursuant to a Continuing Disclosure Certificate dated February 1, 2019 executed and delivered by the City of Redondo Beach and the Community Financing Authority and the Dissemination Agent in connection with the issuance of $28,015,000 Lease Revenue Refunding Bonds (“the Bonds”). The Bonds were issued pursuant to an Indenture of Trust dated as of February 1, 2019 between the Financing Authority and US Bank. The proceeds of the Bonds were issued to provide funds to (a) refund the City of Redondo Beach’s (the “City”) $8,300,000 Leaseback Agreement (Redondo Beach Pier Plaza), dated as of March 1, 2012, by and between Compass Bank and the City, currently outstanding in the principal amount of $6,314.012.91; (b) refund the City’s $2,700,000 Leaseback Agreement (Redondo Beach International Boardwalk Project), dated as of May 1, 2012 by and between Compass Bank and the City, currently outstanding in the principal amount of $2,021,296.58; (c) refund the City’s $12,500,000 Leaseback Agreement (Redondo Beach Marina Project), dated as of May 1, 2014, by and between Compass Bank and the City, currently outstanding in the principal amount of $10,076,474.18; (d) finance the purchase of a Sublease between the City and Redondo Fisherman’s Cove Company; and (e) pay costs of issuance of the Bonds.

This Certification is made pursuant to the requirements of Section 3 and 4 of the Continuing Disclosure Certificate with respect to the 2024-25 fiscal year.

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

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

2. During the fiscal year ended June 30, 2025, neither the City nor the Community Financing Authority has given or caused to be given notice of the occurrence of any of the following events:
a. Principal and interest payment delinquencies;
b. Non-payment related defaults;
c. Unscheduled draws on debt service reserves reflecting financial difficulties; d. Unscheduled draws on credit enhancements reflecting financial difficulties; e. Substitution of credit or liquidity providers, or their failure to perform; f. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices of determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; g. Modifications to rights of security holders;
h. Contingent or unscheduled bond calls;
i. Defeasances;
j. Resale, substitution, or sale of property securing repayment of the securities; k. Rating changes
l. Bankruptcy, insolvency, receivership or similar event of the Obligated Person; DRAFT
733

COMPLIANCE SECTION
DRAFT
734
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
Honorable Mayor and Members of the City Council
City of Redondo Beach
Redondo Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Redondo Beach, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City of Redondo Beach’s basic financial statements, and have issued our report thereon dated REPORT DATE.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Redondo Beach’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Redondo Beach’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Redondo Beach’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.

DRAFT
735

CITY OF REDONDO BEACH

SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED JUNE 30, 2025
We consider the deficiency described in the accompanying schedule of findings and responses as item 2025-001 to be material weakness.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying schedule of findings and responses as items 2025-002 and 2025-003 to be significant deficiencies.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Redondo Beach’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of Redondo Beach’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Redondo Beach’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. City of Redondo Beach’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California

REPORT DATE
DRAFT
736

CITY OF REDONDO BEACH

SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED JUNE 30, 2025
2025-001 – Prior Year Error Corrections
Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition: During the financial statement closing process for the current year, the City’s finance department staff identified three material misstatements requiring restatement of previously issued financial statements to reflect the correction of the errors. These restatements are discussed in Note 17 of the financial statements included within the City’s Annual Comprehensive Financial Report for the year ended June 30, 2025.

Criteria or specific requirement: Restatements of previously issued financial statements to reflect the correction of a material misstatement due to error is a clear indicator of the existence of a material weakness in internal control.

Effect: The beginning net position/fund balance of the governmental activities, business-type activities, other intergovernmental grants special revenue fund, redevelopment obligation retirement fiduciary private-purpose trust fund, and nonmajor governmental funds were restated.

Cause: Significant staff turnover in the City’s finance department in prior years made it difficult to maintain a sound internal control structure over financial reporting. As the new staff were closing the books for the current year, they identified and corrected material errors that dated back several years.

Repeat finding: No
Recommendation: We recommend that the City finance department staff continue their efforts in improving the City’s internal controls over financial reporting so that annual financial reporting is accurate and timely.

Views of responsible officials and planned corrective actions:

Management agrees with the recommendation. The Finance Department has begun developing and implanting accounting procedures, and will continue taking steps to strengthen internal controls over financial reporting. Planned actions include, but are not limited to:
• Providing appropriate and ongoing training to staff to ensure that each understands their roles, responsibilities, and applicable accounting and financial reporting requirements; • Establishing documented work procedures and responsibility checklists for each position to promote consistency, accountability and accuracy;
• Developing and implementing comprehensive month-end and year-end closing procedures, including standardized closing checklists and review processes; • Strengthening supervisory review and monitoring procedures to identify and address errors, omissions, or control deficiencies in a timely manner.

DRAFT
737

CITY OF REDONDO BEACH

SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED JUNE 30, 2025
2025-002 – Financial Statement Closing Process
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Condition: While improvements were noted since the previous year’s audit, we still received several unexpected adjusting journal entries after the delivery of the final trial balance to us, suggesting that the financial statement closing process may benefit from additional refinement to ensure completeness prior to the start of final audit fieldwork.

Criteria or specific requirement: Effective internal control over financial reporting includes timely and well-documented closing procedures that ensure the completeness and accuracy of financial data prior to the start of final audit fieldwork.

Effect: While these entries did not result in a material misstatement of the audited financial statements, the volume and timing of the adjustments indicate opportunities to enhance the City’s internal controls over the year-end closing process.

Cause: Significant staff turnover in the Finance Department in prior years has made it difficult to get back to a normal, year-end, closing process. Certain adjustments and reconciliations were not finalized before the start of the audit, which contributed to the need for post-close entries to update financial statement balances.

Repeat finding: Yes
Recommendation: We recommend:
• Reviewing and refining the year-end closing procedures to promote completeness, consistency, and accuracy.
• Ensuring that all significant general ledger account balances have been reconciled to supporting documentation.
• Developing a formal checklist and timeline to guide the closing process. • Assigning clear responsibilities for key closing tasks and reconciliations across the organization. • Conducting a post-close review to identify areas for improvement and reduce reliance on postclose adjustments.

Views of responsible officials and planned corrective actions:

Management agrees with the recommendation and recognizes the importance of completing a timely, thorough, and well-documented year-end closing process to ensure that financial information is complete and accurate prior to the start of final audit fieldwork. The Finance Department has begun and will continue to taking steps to strengthen and formalize the year-end closing process. Corrective actions will include:
• Providing appropriate training and cross-training to staff to promote continuity and consistency in the year-end closing process and reduce the impact of staff turnover. • Refining year-end closing procedures to establish a consistent and comprehensive process for completing all required closing activities before the final trial balance is provided to the auditors; • Enhancing supervisory review significant general ledger account balances, reconciliations, and proposed year-end adjustments in a timely manner.

DRAFT
738

CITY OF REDONDO BEACH

SCHEDULE OF FINDINGS AND RESPONSES
YEAR ENDED JUNE 30, 2025
2025-003 – Deposits Payable
Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Condition: We did notice some improvement in maintaining deposits payable accounts since the previous year’s audit. However, we still noted several deposit payable accounts that do not appear to be reconciled timely resulting in aged balances that lacked adequate supporting documentation. These accounts balances have not been reviewed regularly, and no formal reconciliation procedures seem to be in place.

Criteria or specific requirement: Effective internal control systems should include procedures for the periodic reconciliation of liability accounts, including deposits payable, to ensure accuracy and completeness of accounting and financial reporting.

Effect: The lack of oversight of deposits payable increases the risk of errors, misstatements, or potential misappropriation of funds.

Cause: Lack of monitoring the details of transactions involving deposit payable accounts and staff turnover.

Repeat finding: Yes
Recommendation: We recommend establishing a formal reconciliation process for all deposits payable accounts that is performed regularly throughout the year. The reconciliation should include reviewing aged balances for validity, identifying transactions involving deposits, clearing unsupported amounts and ensuring that general ledger account balances agree to supporting schedules that show the exact deposit amounts due to each depositor. The department overseeing the services requiring deposits should be maintaining the documentation supporting the deposits and regular reconciliations and the finance department should provide periodic oversight.

Views of responsible officials and planned corrective actions:

Management concurs with the finding. The City recognizes the importance of maintaining accurate and adequately supported deposits payable balances and acknowledges that additional procedures are needed to ensure these accounts are reviewed and reconciled on a timely and consistent basis The City will implement formal reconciliation procedures for all deposits payable accounts, including a defined frequency for timely reconciliations and review throughout the year. The City will require the departments responsible for services involving deposits to maintain adequate documentation supporting each deposit and to assist with the periodic review and reconciliation of outstanding balance. The Finance Department will do research and resolve unsupported or unidentified balances and document the resolution of reconciling items and outstanding differences.

These procedures will be documented and incorporated into the City’s year-end close process to strengthen internal controls and improve financial reporting accuracy. Management will monitor the implementation of these procedures and periodically evaluate the deposits payable accounts to ensure that balances are supported, reconciled, and appropriately reported
DRAFT
739

CITY OF REDONDO BEACH, CALIFORNIA

INMATE TRUST FUND PROGRAM

BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
740

CITY OF REDONDO BEACH, CALIFORNIA

INMATE TRUST FUND PROGRAM

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2025
INDEPENDENT AUDITORS’ REPORT 1

BASIC FINANCIAL STATEMENTS
BALANCE SHEET 4

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 5
NOTES TO FINANCIAL STATEMENTS 6
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROLS OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 7
741
(1)
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members of the City Council
City of Redondo Beach
City of Redondo Beach, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the inmate trust fund program of the City of Redondo Beach as of and for the year ended June 30, 2025 and the related notes to the financial statements, which collectively comprise the inmate trust fund program’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 financial position of the inmate trust fund program of the City of Redondo Beach as of June 30, 2025, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
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 of Redondo Beach, 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 opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements of the inmate trust fund program are intended to present the financial position and changes in financial position of only that portion of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redondo Beach that is attributable to the transactions of the inmate trust fund program.

They do not purport to, and do not, present fairly the financial position of the City of Redondo Beach, as of June 30, 2025, or the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
742
(2)
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 opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Redondo Beach'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.

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

Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, 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. Our opinion on the basic financial statements is not affected by this missing information.
743
(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 inmate trust fund program of the City of Redondo Beach’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 inmate trust fund program of the City of Redondo Beach’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 inmate trust fund program of the City of Redondo Beach’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California

REPORT DATE
744

CITY OF REDONDO BEACH, CALIFORNIA

INMATE TRUST FUND PROGRAM

BALANCE SHEET
JUNE 30, 2025
See accompanying Notes to Financial Statements.
(4)
ASSETS
Cash and Investments 86,357 $
Total Assets 86,357 $

FUND BALANCE
Restricted 86,357 $
Total Fund Balance 86,357 $
745

CITY OF REDONDO BEACH, CALIFORNIA

INMATE TRUST FUND PROGRAM

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2025
See accompanying Notes to Financial Statements.
(5)

REVENUES
Interest Income 2,489 $

EXPENDITURES
Public Safety 548 CHANGE IN FUND BALANCE 1,941
Fund Balance - Beginning of Year 84,416 FUND BALANCE - END OF YEAR $ 86,357 746

CITY OF REDONDO BEACH, CALIFORNIA

INMATE TRUST FUND PROGRAM

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2025
(6)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying balance sheet and statement of revenues, expenditures, and changes in fund balance were presented in a format required by the inmate trust fund program (the Program) of the City of Redondo Beach (the City). The purpose of the financial statements is to present in summary form the financial position and the revenues and expenditures of the Program.

The accompanying financial statements are not intended to, and do not, present the financial position or results of operations of the City, taken as a whole.

Financial Reporting Entity
The Program activity is accounted for within the City's general fund. The purpose of the Program is to accumulate funds from revenues of pay telephones used in the jail facilities for the benefit, education, and welfare of the inmates, as well as for the maintenance of the jail facilities.

Basis of Accounting and Measurement Focus
The Program is accounted for on a spending or current financial resources measurement focus. Operating statements of the Program present increases (revenues and other financial sources) and decrease (expenditures and other financial uses) in net current assets.

The Program is accounted for using the modified accrual basis of accounting wherein revenues are recognized in the accounting period in which they become measurable and available to pay liabilities of the current period. Expenditures are recognized in the accounting period in which the Program liability is incurred, if measurable.

Fund Balance
The Program’s fund balance is classified as restricted. Restricted fund balances include amounts that can be spent only for the specific purposes stipulated by external providers, constitutionally, or through enabling legislation. Effectively, restrictions may be changed or lifted only with the consent of resource providers.

NOTE 2 CASH AND INVESTMENTS
The Program’s resources are maintained in the City’s cash and investment pool.

The City follows the practice of pooling cash and investments of all funds/programs, except for monies 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/programs based on the period-end cash and investments balances.

For more information on the City's cash and investments as of June 30, 2025, please see the City of Redondo Beach's audited financial statements. 747
(7)
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
Honorable Mayor and Members of the City Council
City of Redondo Beach
Redondo Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the inmate trust fund program of the City of Redondo Beach, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the inmate trust fund program of the City of Redondo Beach’s basic financial statements, and have issued our report thereon dated REPORT DATE.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the inmate trust fund program of the City of Redondo Beach’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the inmate trust fund program of the City of Redondo Beach’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the inmate trust fund program of the City of Redondo Beach’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 748

CITY OF REDONDO BEACH, CALIFORNIA

INMATE TRUST FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2025
(8)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the inmate trust fund program of the City of Redondo Beach’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California

REPORT DATE
749
Administrative
Report
H.18., File # 26-1138 Meeting Date: 9/15/2026
To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY

STEPHANIE JOHNSON, QUALITY OF LIFE PROSECUTOR

COLE WEBB, LEGAL INTERN
TITLE
ADOPT BY TITLE ONLY ORDINANCE NO. 3317-26 AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADDING TITLE 4, CHAPTER 38, OF THE REDONDO BEACH MUNICIPAL CODE PERTAINING TO HEDGES. FOR SECOND READING AND ADOPTION ADOPT BY TITLE ONLY ORDINANCE NO. 3318-26 AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING TITLE 1, CHAPTER 2, SECTION 1-2.01 OF THE REDONDO BEACH MUNICIPAL CODE PERTAINING TO GENERAL PENALTIES: CONTINUING VIOLATIONS.

FOR SECOND READING AND ADOPTION
ADOPT BY TITLE ONLY ORDINANCE NO. 3319-26 AN ORDINANCE OF THE CITY OF REDONDO BEACH, CALIFORNIA, AMENDING TITLE 1, CHAPTER 2, SECTION 1-2.03 OF THE REDONDO BEACH MUNICIPAL CODE PERTAINING TO INFRACTIONS. FOR SECOND READING AND

ADOPTION

EXECUTIVE SUMMARY
Following a July 21, 2026 discussion, City Council directed staff to revise the City’s hedge ordinance based on their recommendations. Staff distributed a draft to City Departments for feedback and presented the updated version to City Council on September 1, 2026. The ordinance amendments successfully passed their first reading on September 8, 2026, and are now before Council for a second reading and adoption.

BACKGROUND
On September 8, 2026, City staff introduced an enforcement-focused amendment to the hedge ordinance rather than a zoning modification. These changes will be codified in Chapter 38 of Title 4 of the Redondo Beach Municipal Code (RBMC), as well as Penalty Sections 1-2.01 and 1-2.03. Title 10 will be updated later for consistency. The proposed ordinance changes reflect the recommendations of Council and City staff and, if adopted, will become effective in thirty (30) days, on October 15, 2026.

COORDINATION
The City Attorney's Office prepared this report.

FISCAL IMPACT