Redondo Beach (2026 General Obligation Bonds) - Prelim Official Statement-45055026-v5-c1 — Redondo Beach City Council, October 13, 2026

PRELIMINARY OFFICIAL STATEMENT DATED _________, 2026
NEW ISSUE - BOOK-ENTRY ONLY RATING: S&P: “AA+”
See “RATING” herein.

In the opinion of Best Best & Krieger LLP, Bond Counsel, based upon an analysis of existing laws, regulations, rulings, and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax; however, Bond Counsel observes that interest on the Bonds may impact the federal alternative minimum tax applicable to certain corporations. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds. See “TAX MATTERS” herein. $____________

CITY OF REDONDO BEACH, CALIFORNIA
General Obligation Bonds
(Measure FP Public Safety Improvements)
Series 2026
Dated: Date of Delivery Due: September 1, as set forth on the inside front cover.

The City of Redondo Beach, California (the “City”) is issuing its General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026 (the “Bonds”). The Bonds will be issued by the City under the Government Code of the State of California, the Charter of the City (the “Charter”), and a resolution adopted by the City Council of the City. The issuance of the Bonds has been authorized at an election of the registered voters of the City on November 5, 2024, at which more than two-thirds of the persons voting on Measure FP voted to authorize the issuance and sale of general obligation bonds to provide funds for certain public safety improvements of the City. See “THE BONDS – Authority for Issuance; Purposes.” The proceeds of the Bonds will be used to finance certain public improvements as described herein, to fund all or a portion of the interest on the Bonds through ________, and to pay certain costs related to the issuance of the Bonds. ‎See “THE BONDS – Authority for Issuance; Purposes” and “ESTIMATED SOURCES AND USES OF FUNDS.” The Bonds will be dated and bear interest from their date of delivery until paid in full at the rates shown in the maturity schedule on the page immediately following the cover hereof. Interest on the Bonds will be payable on March 1 and September 1 of each year, commencing March 1, 2027. Principal will be paid at maturity as shown on the page immediately following the cover. See “THE BONDS – Payment of Interest and Principal.” The Bonds will be issued only in fully registered form without coupons, and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). Individual purchases of the Bonds will be made in book-entry form only, in denominations of $5,000 or any integral multiple thereof. Payments of principal of and interest on the Bonds will be made by U.S. Bank Trust Company, National Association, as Fiscal Agent, to DTC, which in turn is required to remit such principal and interest to the DTC Participants for subsequent disbursement to the beneficial owners of the Bonds. See “THE BONDS – Form and Registration.” The Bonds will be subject to redemption prior to maturity, as described herein. See “THE BONDS – Redemption.” The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied by the City and collected by the County of Los Angeles (the “County”). The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except certain personal property that is taxable at limited rates). See “SECURITY FOR THE BONDS.” This cover page contains certain information for general reference only. It is not intended to be a summary of the security or terms of the Bonds. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision.

The Bonds are expected to be sold by competitive sale on _______, 2026, pursuant to the Official Notice of Sale dated ______, 2026. The Bonds are offered when, as and if executed and delivered, subject to approval by Best Best & Krieger LLP, Riverside, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the City by the City Attorney and by Best Best & Krieger LLP, Los Angeles, California, as Disclosure Counsel. It is expected that the Bonds will be available for delivery through the facilities of DTC by Fast Automated Securities Transfer (FAST) on or about ________, 2026.

Dated: ________, 2026
$________

CITY OF REDONDO BEACH, CALIFORNIA
General Obligation Bonds
(Measure FP Public Safety Improvements)
Series 2026
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Yield
Price
CUSIP
Number†
$______ _____% Term Bond maturing September 1, 20____; Yield: ______%; Price: _______; CUSIP†: ______ $______ _____% Term Bond maturing September 1, 20____; Yield: ______%; Price: _______; CUSIP†: ______ _____________________
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein are provided by CUSIP Global Services, managed by FactSet Research Systems Inc. on behalf of the American Bankers Association. CUSIP numbers have been assigned by an independent company not affiliated with the City and are included solely for the convenience of the holders of the Bonds. None of the City, its Municipal Advisor or the Underwriter is responsible for the selection or use of these CUSIP numbers and no representation is made as to their correctness on the Bonds or as indicated above. The CUSIP number for a specific Bond is subject to being changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of the Bonds.

No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations other than those contained herein, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction which it is unlawful for such person to make such offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, projections, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as a representation of facts. The information and expressions of opinion herein are subject to change without notice, and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the information or opinions set forth herein or in the affairs of the City since the date hereof.

The information in this Official Statement has been provided by the City and sources the City considers reliable. The Underwriter (as defined in “UNDERWRITING”) has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the Federal Securities Laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

The information set forth herein other than that provided by the City, although obtained from sources which are believed by the City to be reliable, is not guaranteed by the City as to accuracy or completeness. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date thereof. This Official Statement is submitted with respect to the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such documents.

This Official Statement, including any supplement or amendment hereto, is intended to be filed with the Municipal Securities Rulemaking Board through the Electronic Municipal Market Access (EMMA) website. The City also maintains a website. However, the information presented therein is not part of this Official Statement and should not be relied upon in making investment decisions with respect to the Bonds.

References to website addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated into, and are not part of, this Official Statement for purposes of, and as that term is defined in, SEC Rule 15c2-12.

The Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon the exemption contained in Section 3(a)(2) of such Act. The Resolution and the Fiscal Agent Agreement have not been qualified under the Trust Indenture Act of 1939, as amended, in reliance upon an exemption contained in such Act. _______________________________________

CAUTIONARY STATEMENTS REGARDING

FORWARD-LOOKING STATEMENTS IN THIS OFFICIAL STATEMENT
Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget,” “project,” “projection” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The City does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations or events, conditions or circumstances on which such statements are based occur.

CITY OF REDONDO BEACH, CALIFORNIA

CITY COUNCIL

Jim Light, Mayor
Brad Waller, Mayor Pro Tem
Scott Behrendt, Council Member
Chadwick Castle, Council Member
Paige Kaluderovic, Council Member
Zein Obagi, Jr., Council Member

OTHER ELECTED OFFICIALS

Eugene Solomon, City Treasurer
Eleanor Manzano, City Clerk
Joy A. Ford, City Attorney

CITY STAFF

Mike Witzansky, City Manager
Stephanie Lazicki Meyer, Finance Director

SPECIAL SERVICES

BOND COUNSEL
Best Best & Krieger LLP
Riverside, California

DISCLOSURE COUNSEL
Best Best & Krieger LLP
Los Angeles, California

MUNICIPAL ADVISOR
Public Resources Advisory Group
Los Angeles, California

FISCAL AGENT
U.S. Bank Trust Company, National Association
Los Angeles, California

TABLE OF CONTENTS
Page
INTRODUCTION 1
General 1
The City 1
Authority for Issuance 1
The Bonds 2
Security of the Bonds 2
No Reserve Fund 3
Continuing Disclosure 3
Summaries Not Definitive 3
THE bondS 3
Authority for Issuance; Purposes 3
Form and Registration 3
Payment of Interest and Principal 4
Redemption 4
Exchange of Bonds 7
Capital Project Fund 7
Defeasance 7
PLAN OF FINANCE 9
ESTIMATED SOURCES AND USES OF FUNDS 10
DEBT SERVICE SCHEDULE 11
SECURITY FOR THE BONDS 12
General 12
Flow of Funds Under the Resolution 12
Pledge 14
Statutory Lien on Taxes (Senate Bill 222) 14
PROPERTY TAXATION 14
General 14
Property Tax Collection Procedures 14
Taxation of State-Assessed Utility Property 15
Assessed Valuation 16
Appeals of Assessed Value 19
Tax Rates 20
Principal Property Taxpayers 21
Direct and Overlapping Debt 21
CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS 23 Article XIII A of the State Constitution 23
Article XIII B of the State Constitution – Gann Limit 24 Articles XIII C and XIII D of the State Constitution – Proposition 218 and Proposition 26 24 Proposition 1A 26
Proposition 22 27
Future Initiatives 27
Risk Factors 28
Assessed Value of Taxable Property 28
Possible Limitations on Remedies; Bankruptcy 29
Changing Economic Conditions 31
Seismic Factors 32
Risk of Floods, Fire or Tsunami 32
Loss of Tax Exemption 32
Cybersecurity 33
Public Health Emergencies 33
Federal Legislation and Policy Risks 33
FINANCIAL STATEMENTS 34
TAX MATTERS 34
APPROVAL OF LEGALITY 36
LITIGATION 36
CONTINUING DISCLOSURE 36
RATING 37
UNDERWRITING 37
MUNICIPAL ADVISOR 37
EXECUTION AND DELIVERY 38
APPENDIX A
-

CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION A-1
APPENDIX B
-
CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2025 B-1

APPENDIX C
-

CITY OF REDONDO BEACH INVESTMENT POLICY
C-1
APPENDIX D
-

PROPOSED FORM OF OPINION OF BOND COUNSEL
D-1
APPENDIX E
-

BOOK-ENTRY SYSTEM
E-1
APPENDIX F
-

FORM OF CONTINUING DISCLOSURE AGREEMENT
F-1

OFFICIAL STATEMENT
$_________

CITY OF REDONDO BEACH, CALIFORNIA
General Obligation Bonds
(Measure FP Public Safety Improvements)
Series 2026

INTRODUCTION
This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement.

General
The purpose of this Official Statement, including the cover page and appendices hereto, is to provide certain information with the public offering by the City of Redondo Beach (the “City”) of $_________ aggregate principal amount of its General Obligation Bonds (Measure FP Public Safety Improvements), Series 2026 (the “Bonds”).

The Bonds will be payable from ad valorem taxes levied upon all taxable property in the City. The City Council of the City (the “City Council”) has the power and is obligated to levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the City subject to taxation without limitation as to the rate or the amount (except with respect to certain personal property which is taxable at limited rates). See “SECURITY FOR THE BONDS.” For information on the City’s tax base, tax collection system and property tax revenues, see also “PROPERTY TAXATION” herein and “CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS.” The Bonds are being issued to finance the reconstruction of Fire Stations No. 1 and 2 and the modernization of Police facilities, including the Headquarters and Annex buildings, including design, construction, acquisition, improvement and renovation thereto, as described herein, to fund all or a portion of interest on the Bonds through _________________, and to pay certain costs related to the issuance of the Bonds. ‎See “THE BONDS – Authority for Issuance; Purposes” and “SOURCES AND USES OF FUNDS.” The City
The City was incorporated in 1892 and adopted a charter in 1949. The City is located on the coastal edge of Los Angeles County, approximately 20 miles from downtown Los Angeles and approximately seven miles south of Los Angeles International Airport and spans 6.3 square miles. The City’s population as of January 1, 2026 was 68,460. The City remains a mostly residential, non-industrial community. See APPENDIX A - “CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION” herein for further information regarding the City.

Authority for Issuance
The Bonds were authorized at an election of the registered voters of the City held on November 5, 2024, at which more than two-thirds of the persons voting on the measure voted to authorize the issuance and sale of not to exceed $93,350,000 principal amount of general obligation bonds (“Measure FP Authorization”), to fund the reconstruction of Fire Stations No. 1 and 2 and the modernization of Police facilities, including the Headquarters and Annex buildings. The Bonds represent the only series of bonds to be sold and issued under the Measure FP Authorization.

The Bonds will be issued (a) under the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with section 53506 et seq.) and Chapter 4 (commencing with section 43600) of Division 4 Title 4 of the California Government Code and the Charter and (b) pursuant to Ordinance No. 3274-24 passed by the City Council on August 6, 2024 (the “Ordinance”). The City authorized the issuance of the Bonds by resolution adopted by the City Council of the City on October 13, 2026 (the “Resolution”).

In addition, the Bonds will be issued pursuant to a Fiscal Agent Agreement, dated as of November 1, 2026 (the “Fiscal Agent Agreement”), by and between the City and U.S. Bank Trust Company, National Association, as Fiscal Agent (the “Fiscal Agent”).

The Bonds
Interest on the Bonds will be payable on each March 1 and September 1 (an “Interest Payment Date”) to maturity or prior redemption, commencing March 1, 2027, at the interest rates shown on the pages immediately following the cover hereof. Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. The Fiscal Agent will act as Fiscal Agent, paying agent and registrar with respect to the Bonds. The interest on the Bonds will be payable in lawful money of the United States to the person whose name appears on the Bond registration books of the Fiscal Agent as the owner thereof as of the close of business on the fifteenth day of the month immediately preceding an interest payment date (the “Record Date”), whether or not such day is a business day.

The Bonds will mature on the dates shown on the pages immediately following the cover page hereof. The Bonds will be subject to redemption prior to maturity, as described below. See “THE BONDS – Redemption” below. The principal of the Bonds will be payable in lawful money of the United States to the owner thereof upon the surrender thereof at maturity or earlier redemption at the office of the Fiscal Agent.

Security of the Bonds
The Bonds are general obligations of the City payable solely from ad valorem property taxes levied by the City and collected by the County. The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except with respect to certain personal property that is taxable at limited rates).

Pursuant to Section 53515 of the California Government Code, all general obligations bonds issued by local agencies will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the tax. Pursuant to the Resolution, the City has covenanted to levy an ad valorem property tax in each Fiscal Year in accordance with the applicable law to pay the principal of, redemption premium, if any, and interest on the Bonds due and payable, and has irrevocably pledged the ad valorem taxes levied and collected pursuant to the Resolution for the payment of the principal of and interest on the Bonds when and as the same shall become due and payable. See “SECURITY FOR THE BONDS.” Under the Resolution, the City is not obligated to pay the debt service on the Bonds from any sources other than as described above. This Official Statement, including Appendix A hereto, provides information on the City’s overall operations and finances with an emphasis on its General Fund and therefore includes information on revenues and other funds that are not pledged to the Bonds under the Resolution and that should not be considered available to pay debt service on the Bonds.

No Reserve Fund
No reserve fund will be established for the Bonds.

Continuing Disclosure
The City will covenant for the benefit of the Owners and beneficial owners of the Bonds to provide certain financial information and operating data relating to the City and notices of the occurrence of certain enumerated events to the Municipal Securities Rulemaking Board (the “MSRB”) pursuant to a Continuing Disclosure Agreement (the “Continuing Disclosure Agreement”). These covenants are being made in order to assist the underwriter of the Bonds in complying with Rule 15c2-12, as amended (the “Rule”) of the U.S. Securities and Exchange Commission (“SEC”) promulgated under the Securities Exchange Act of 1934, as amended. See “CONTINUING DISCLOSURE” and “APPENDIX F - FORM OF CONTINUING DISCLOSURE AGREEMENT” herein.

Summaries Not Definitive
Brief descriptions and summaries of the Bonds, the Resolution, the Fiscal Agent Agreement, provisions of the constitution and statutes of the State, the Charter and City ordinances, and other documents are provided herein. Such descriptions and summaries do not purport to be comprehensive or definitive. All references herein to the Bonds and such other documents are qualified in their entirety by reference to the actual documents. Copies of documents referred to herein and information concerning the Bonds are available from the Finance Director, City of Redondo Beach, 415 Diamond Street, Redondo Beach, California 90277; telephone (310) 372-1171. The City may impose a charge for copying, mailing and handling.

THE bondS
Authority for Issuance; Purposes
General. The Bonds will be issued under the California Government Code, the Charter and pursuant to the Ordinance and the Resolution.

The Bonds will constitute the first and only issuance of bonds from a not to exceed authorized amount of $93,350,000 of City of Redondo Beach, California General Obligation Bonds, Series 2026, duly approved by more than two-thirds of the voters voting on Measure FP at an election held on November 5, 2024 (“Measure FP”), to provide funds for the purposes authorized in Measure FP, which are summarized as follows: to fund the reconstruction of Fire Stations No. 1 and 2 and the reconstruction and modernization of Police facilities, including the Headquarters and Annex buildings. See “PLAN OF FINANCE” herein.

Form and Registration
The Bonds will be issued in the principal amounts set forth on the pages immediately following the cover hereof, in the denomination of $5,000 each or any integral multiple thereof, and will be dated their date of delivery. The Bonds will be issued in fully registered form, without coupons. The Bonds will be initially registered in the name of Cede & Co. as registered owner and nominee for The Depository Trust Company (“DTC”), which is required to remit payments of principal and interest to the DTC Participants for subsequent disbursement to the beneficial owners of the Bonds. See “APPENDIX E – BOOK-ENTRY SYSTEM.” Payment of Interest and Principal
Interest on the Bonds will be payable on each March 1 and September 1 to maturity or prior redemption, commencing March1, 2027, at the interest rates shown on the pages immediately following the cover hereof. Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. U.S. Bank Trust Company, National Association will act as Fiscal Agent, paying agent and registrar with respect to the Bonds. The interest on the Bonds will be payable in lawful money of the United States to the person whose name appears on the Bond registration books of the Fiscal Agent as the owner thereof as of the Record Date, whether or not such day is a business day. Each Bond authenticated on or before February 15, 2027 shall bear interest from the date of said Bond. Each Bond authenticated during the period between any Record Date and the close of business on its corresponding Interest Payment Date shall bear interest from such Interest Payment Date. Any other Bond shall bear interest from the Interest Payment Date immediately preceding the date of its authentication. If, at the time of authentication of any Bond, interest is in default on any outstanding Bonds, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on the outstanding Bonds.

The interest on the Bonds shall be payable in lawful money to the person or entity whose name appears on the bond registration books of the Fiscal Agent as the Owner thereof as of the close of business on the applicable Record Date for each Interest Payment Date whether or not such day is a Business Day. Payment of the interest on any Bond shall be made by check mailed by first class mail on each Interest Payment Date, whether or not such day is a Business Day, to such Owner at such Owner’s address as it appears on such registration books or at such address as the Owner may have filed with the Fiscal Agent for that purpose on or before a Record Date; or upon written request of the Owner of interest-bearing Bonds aggregating not less than $1,000,000 in principal amount, given no later than the Record Date immediately preceding the applicable Interest Payment Date, by wire transfer in immediately available funds to an account maintained in the United States at such wire address as such Owner shall specify in its written notice. So long as Cede & Co. or its registered assigns shall be the registered owner of any of the Bonds, payment shall be made thereto by wire transfer as provided in the Fiscal Agent Agreement. See “APPENDIX E - BOOK-ENTRY SYSTEM.” The Bonds will mature on the dates shown on the pages immediately following the cover page hereof. The Bonds will be subject to redemption prior to maturity, as described below. See “– Redemption” below. The principal of the Bonds will be payable in lawful money of the United States to the owner thereof upon the surrender thereof at maturity or earlier redemption at the office of the Fiscal Agent.

Redemption
Optional Redemption
The Bonds maturing on or after September 1, 20___, are subject to optional redemption prior to their respective stated maturity dates, at the option of the City, from any source of available funds, as a whole or in part on any date on or after September 1, 20___, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, without premium, together with accrued interest thereon to the date fixed for redemption.

Mandatory Redemption of the Bonds
The Bonds maturing on September 1, 20___ (“20___ Term Bonds”) are subject to mandatory sinking fund redemption on September 1 of each year, commencing September 1, 20___, at a redemption price equal to 100% of their principal amount, together with accrued interest thereon to the date fixed for redemption, without premium, on the dates and in the aggregate principal amounts listed below.

Mandatory Sinking Fund Redemption Dates
(September 1)
Sinking Fund Payment
Principal Amount
__________________
* Final Maturity
In the event that a portion of the 20___ Term Bonds is optionally redeemed prior to maturity, the remaining mandatory sinking fund payments shown above shall be reduced proportionately or as otherwise directed by the City, in integral multiples of $5,000 principal amount, with respect to the portion of such 20___ Term Bonds optionally redeemed.

The Bonds maturing on September 1, 20___ (“20___ Term Bonds”) are subject to mandatory sinking fund redemption on September 1 of each year, commencing September 1, 20___, at a redemption price equal to 100% of their principal amount, together with accrued interest thereon to the date fixed for redemption, without premium, on the dates and in the aggregate principal amounts listed below.

The principal of and interest on the Bonds subject to mandatory redemption will be paid from the Bond Fund established under the Resolution. In lieu of any such mandatory redemption for Bonds, at any time prior to the selection of Bonds for mandatory redemption, the City may apply amounts on deposit in the Bond Subaccount to make such payment to the purchase, at public or private sale, of Bonds subject to such mandatory redemption, and when and at such prices not in excess of the principal amount thereof (including sales commission and other charges but excluding accrued interest), as the City may determine.

Selection of Bonds for Redemption
If less than all of the Bonds are called for redemption, such Bonds will be redeemed in inverse order of maturities or as otherwise directed by the City. If less than all of the Bonds of any given maturity are called for redemption, the portions of such Bonds of a given maturity to be redeemed will be determined by lot by the Fiscal Agent. For purposes of such selection, each Bond shall be deemed to consist of individual Bonds of denominations of $5,000 principal amount each, which may be separately redeemed.

Notice of Redemption
The date on which Bonds that are called for redemption are to be presented for redemption is called the “Redemption Date.” The Fiscal Agent will mail, or cause to be mailed, notice of any redemption of the Bonds to be redeemed, postage prepaid, to the respective registered owners thereof at the addresses appearing on the bond registration books not less than 20 days and not more than 60 days prior to the Redemption Date.

Notice of redemption also will be given, or caused to be given, by the Fiscal Agent, by (i) registered or certified mail, postage prepaid, (ii) overnight delivery service, or (iii) to the extent applicable to the intended recipient, email or similar electronic means, to (a) all organizations registered with the Securities and Exchange Commission as securities depositories and (b) such other services or organizations as may be required in accordance with the Continuing Disclosure Agreement. See “CONTINUING DISCLOSURE” and Appendix F – “FORM OF CONTINUING DISCLOSURE AGREEMENT” herein.

Each notice of redemption will (a) state the Redemption Date; (b) state the redemption ‎price; (c) state the maturity dates of the Bonds called for redemption, and, if less than all of any ‎such maturity is called for redemption, the distinctive numbers of the Bonds ‎of such maturity to be redeemed, and in the case of a Bond redeemed in ‎part only, the portions of the principal amount thereof to be redeemed; (d) state ‎the CUSIP number, if any, of each Bond to be redeemed; (e) require that ‎such Bonds be surrendered by the owners at the office of the Fiscal Agent; and (f) give notice that interest on such Bonds or portions of such Bonds to be redeemed will cease ‎to accrue after the designated Redemption Date. Any notice of optional redemption may be conditioned on the receipt of funds or any other event specified in the notice. See “– Conditional Notice; Right to Rescind Notice of Optional Redemption” below.

The actual receipt by the owner of any Bond of such notice of redemption will not be a condition precedent to redemption of such Bond, and failure to receive such notice, or any defect in such notice, will not affect the validity of the proceedings for the redemption of such Bond or the cessation of the accrual of interest on such Bond on the Redemption Date.

Effect of Notice of Redemption
When notice of optional redemption has been given as described above, and when the amount necessary for the redemption of the Bonds called for redemption (principal, premium, if any and accrued interest to the Redemption Date) is set aside for that purpose in the Redemption Account established under the Fiscal Agent Agreement, the Bonds designated for redemption will become due and payable on the Redemption Date, and upon presentation and surrender of such Bonds at the place specified in the notice of redemption, such Bonds will be redeemed and paid at said redemption price out of the related Redemption Account. No interest will accrue on such Bonds called for redemption after the Redemption Date and the registered owners of such Bonds will look for payment of such Bonds only to the related Redemption Account. All Bonds redeemed will be canceled immediately by the Fiscal Agent and will not be reissued.

Moneys held in a Redemption Account will be invested by the Fiscal Agent as directed by the City Treasurer pursuant to the City’s policies and guidelines for investment of moneys in the General Fund of the City. See Appendix C – “CITY OF REDONDO BEACH INVESTMENT POLICY.” Conditional Notice; Right to Rescind Notice of Optional Redemption Any notice of optional redemption may provide that such redemption is conditioned upon: (i) deposit of sufficient moneys in the Redemption Account to redeem the Bonds called for redemption on the anticipated Redemption Date, or (ii) the occurrence of any other event specified in the notice of redemption. In the event that such conditional notice of optional redemption has been given substantially and on the scheduled Redemption Date (i) sufficient moneys to redeem the Bonds called for optional redemption on the Redemption Date have not been deposited, or (ii) any other event specified in the notice of redemption did not occur, such Bonds for which notice of conditional optional redemption was given will not be redeemed on the anticipated Redemption Date and will remain Outstanding for all purposes of the Resolution and the redemption not occurring will not constitute a default under the Resolution.

In addition, the City may rescind any optional redemption and notice thereof for any reason on any date prior to any Redemption Date by causing written notice of the rescission to be given to the Registered Owner of all Bonds so called for redemption. Notice of such rescission of redemption will be given in the same manner notice of redemption was originally given. The actual receipt by the Registered Owner of any Bond of notice of such rescission will not be a condition precedent to rescission, and failure to receive such notice or any defect in such notice so mailed will not affect the validity of the rescission.

Exchange of Bonds
Bonds may be exchanged at the office of the Fiscal Agent designated for that purpose, for a like aggregate principal amount of Bonds of other authorized denominations of the same maturity and interest rate. The Fiscal Agent shall require the payment by the Bondowner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. No exchange of Bonds shall be required to be made by the Fiscal Agent during the period from the close of business on the Record Date next preceding any Interest Payment Date or date fixed for redemption to and including such Interest Payment Date or the date fixed for redemption.

Capital Project Fund
The Resolution establishes a project fund for the Bonds (the “Capital Project Fund”). The Capital Project Fund will be maintained by the Fiscal Agent as a separate account, segregated and distinct from all other accounts. The Fiscal Agent may establish such accounts and subaccounts within the Capital Project Fund as may be necessary or convenient in connection with the administration of the Project or the Bonds.

Project Account. Within the Capital Project Fund, there is established a Project Account to be maintained and administered by the Fiscal Agent. All of the proceeds of the sale of the Bonds (excluding premium and accrued interest received thereon, unless otherwise directed by an Authorized Officer) shall be deposited by the Fiscal Agent to the credit of the Project and shall be applied exclusively to the objects and purposes of the Project in accordance with the Fiscal Agent Agreement.

When such objects and purposes have been accomplished, any moneys remaining in the Project Account, shall be transferred to the Bond Fund established and applied to the payment of the principal of and interest on the Bonds (see “SECURITY FOR THE BONDS – Flow of Funds Under the Resolution”).

Costs of Issuance Account. Within the Capital Project Fund, there is established a Costs of Issuance Account to be maintained and administered by the Fiscal Agent. Amounts in the Costs of Issuance Account may be applied to the payment of costs of issuance of the Bonds, including, without limitation, underwriter’s discount, bond and financial printing expenses, mailing and publication expenses, rating agency fees, and the fees and expenses of fiscal agents, paying agents, registrars, financial consultants, bond counsel and disclosure counsel, in accordance the Fiscal Agreement.

Defeasance
Payment of all or any portion of the Bonds may be provided for prior to such Bonds’ respective stated maturities by irrevocably depositing with the Fiscal Agent (or any commercial bank or trust company designated by the Finance Director to act as escrow agent with respect thereto): (a) an amount of cash equal to the principal amount of all of such Bonds or a portion thereof, and all unpaid interest thereon to maturity, except that in the case of Bonds which are to be redeemed prior to such Bonds’ respective stated maturities and in respect of which notice of such redemption shall have been given as provided in the Fiscal Agent Agreement or an irrevocable election to give such notice shall have been made by the City, the amount to be deposited shall be the principal amount thereof, all unpaid interest thereon to the Redemption Date, and any premium due on such Redemption Date; or (b) Defeasance Securities not subject to call, except as provided below in the definition thereof, maturing and paying interest at such times and in such amounts; together with interest earnings and cash, if required, as will, without reinvestment, as certified by an independent certified public accountant, be fully sufficient to pay the principal and all unpaid interest to maturity, or to the Redemption Date, as the case may be, and any premium due on the Bonds to be paid or redeemed, as such principal and interest come due; provided, that, in the case of the Bonds which are to be redeemed prior to maturity, notice of such redemption shall be given as provided in the Fiscal Agent Agreement or an irrevocable election to give such notice shall have been made by the City; then, all obligations of the City with respect to such outstanding Bonds shall cease and terminate, except only the tax covenants in the Resolution and the Fiscal Agent Agreement and the obligation of the City to pay or cause to be paid from the funds deposited pursuant to clause (a) or (b) above, to the owners of such Bonds all sums due with respect thereto; and provided further, that the City shall have received an opinion of nationally recognized bond counsel, that provision for the payment of such Bonds has been made in accordance with the Fiscal Agent Agreement.

If at any time the City shall pay or cause to be paid or there shall otherwise be paid to the Owners of any or all outstanding Bonds all of the principal, interest and premium, if any, represented by such Bonds when due, or as described above, or as otherwise provided by law, then such Owners shall cease to be entitled to the obligation of the City to levy and collect taxes to pay the Bonds as described in the Fiscal Agent Agreement, and such obligation and all agreements and covenants of the City to such Owners hereunder and under the Bonds shall thereupon be satisfied and discharged and shall terminate, except only that the City shall remain liable for payment of all principal, interest and premium, if any, represented by such Bonds, but only out of moneys on deposit in the Bond Fund or otherwise held in trust for such payment, provided, that the unclaimed moneys provisions described in the Fiscal Agent Agreement shall apply in all events.

As used in this section, the following terms have the meanings given below:
“Defeasance Securities” means (i) direct, non-callable obligations of the United States Treasury; (ii) direct non-callable and non-prepayable obligations which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest; (iii) non-callable, non-prepayable coupons from the above securities which are stripped pursuant to United States Treasury programs; (iv) non-callable and non-prepayable (or irrevocably called to a specified redemption date) refunded municipal bonds that are backed by an escrow funded with obligations of or guaranteed by the United States of America; (v) Resolution Funding Corporation (REFCORP) securities consisting of interest components stripped by the Federal Reserve Bank of New York; (vi) United States State and Local Government Securities (SLGS); and (vii) the following non-callable, non-prepayable obligations of federal government-sponsored agencies that are not backed by the full faith and credit of the U.S. Government: Federal Home Loan Bank, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Tennessee Valley Authority, Farm Credit System, Washington Metropolitan Area Transit Authority, United States Import-Export Bank, United States Department of Housing and Urban Development, Farmers Home Administration, General Services Administration and United States Maritime Administration (provided such agency security has a rating when purchased at the same level as obligations of the United States Treasury).

PLAN OF FINANCE
The City of Redondo Beach’s Measure FP Project is a November 5, 2024 voter-approved $93,350,000 general obligation (GO) bond measure to fund the reconstruction of Fire Stations No. 1 and 2 and the modernization of Police facilities, including the Headquarters and Annex buildings, in order to enhance public safety operations for the community.

The reconstruction of Fire Stations No. 1 and 2 (“Fire Station Project”) is a two-site, multi-phase initiative to replace the existing Fire Station No. 1 at 401 S. Broadway, Redondo Beach, CA 90277 and Fire Station No. 2 at 2400 Grant Avenue, Redondo Beach, CA 90278 with modern, high-performance, and operationally resilient facilities that meet current and future service demands. The City envisions modern, resilient, durable, and operationally efficient fire stations that will enhance the City’s ability to protect lives and property; support firefighter health and readiness; reflect best practices in fire service design and sustainability; and meet the needs of the community for the foreseeable future.

For Fire Station 1, the plan includes replacement of the existing 11,474 square foot facility with a roughly 15,000 square foot new station that will continue to house the Fire Department administration and command staff along with a dozen front-line personnel per shift, including the division/battalion chiefs, captains, engineers, and firefighters/paramedics. Fire Station 2 redesign will involve replacement of the existing 7,753 square foot facility with a roughly 13,000 square foot new station that will continue to house the Fire Department training unit and ten front-line personnel per shift, including the captains, engineers, and firefighters/paramedics.

Replacement of the existing fire stations with new facilities will be designed around the City’s identified programmatic space requirements, including modern apparatus bays, living quarters/dorms, training areas, administrative offices and support spaces. Site enhancements will include upgraded utilities, site circulation, drive aprons, wash areas and landscaping designed to enhance safety, efficiency and neighborhood compatibility. Furthermore, the City has prioritized the incorporation of durable, energy-efficient systems, inclusive of an emergency generator, and design strategies that reduce long-term maintenance costs and improve building performance under emergency and post-disaster conditions, with the flexibility to accommodate future technology integration, apparatus modifications, and evolving operational demands without major disruption. The estimated direct construction cost is $26,300,000 and key cost components include but are not limited to: construction; geotechnical (e.g., soils reports); deputy testing/inspections; architectural and engineering services; furniture, fixtures and equipment; temporary facilities and relocation expenses; electrical systems and special equipment; utility connection services and fees; and program and construction management firm overhead, fees and reimbursables. The table below details the direct construction and other key budget categories. The City is currently in Phase 1 of the Fire Station Project involving design and concept review, pre-construction and constructability review, and a Guaranteed Maximum Price (“GMP”) development/negotiation. Phase 1 of the Fire Station Project is expected to be completed by the end of 2026. Phase 2 of the Fire Station Project involving the construction of the Fire Station Project is expected to be completed in the Fall of 2028.

Key Budget Components/Categories
Phase 1 Pre-Construction Design & Support Services
$2,250,000
Phase 2 Construction Materials & Labor
26,300,000
Phase 2 Construction Services (GC/GR), Administrative Oversight, and Project Management for Progressive Design-Build
9,300,000
Temporary Facilities and Relocation During Construction 5,350,000
Environmental, Testing, Utilities, FF&E, and Misc.
2,300,000
Contingency
2,500,000
TOTAL
$48,000,000
The modernization of Police facilities (“Police Station Project”) involves is a multi-phase initiative to reimagine, upgrade, and unify the existing Redondo Beach Police Department (RBPD) Headquarters at 401 Diamond Street, Redondo Beach, CA 90277 and Annex Building at 200 N. Pacific Coast Highway, Redondo Beach, CA 90277 into a modern, high-performing and operationally resilient campus that meets current and future law enforcement and public safety needs.

The Police headquarters update includes modernization, replacement and/or expansion of key elements of the existing 19,152 square foot main station, including the first-floor jail, basement-level Communications/Dispatch Center, and Patrol Bureau. This effort is designed to address the City’s identified functional and programmatic needs for its personnel that includes ninety-eight sworn and sixty non-sworn employees across those units mentioned as well as Administration, Property and Evidence, Records, Crime Lab, Animal Services, Code Enforcement, Parking Enforcement, Traffic, Community Services, Victim Services Assistance, and Quality of Life. The Police Annex Building project involves the renovation and modernization of the existing 11,226 square foot facility to optimize circulation, adjacencies and workflow for non-essential facilities-designated activities and functions. The goal is to balance functionality, safety and aesthetics for the building while enhancing both operational performance and civic presence.

The incorporation of durable, energy-efficient systems, inclusive of backup power generation, and innovative design strategies are intended to reduce long-term maintenance costs and improve building performance under emergency and post-disaster conditions. Additionally, there will be consideration to design flexibility to accommodate future technology integration, evolving staff needs, and the potential expansion or reconfiguration of facilities without significant operational disruption. The estimated direct construction cost is $26,500,000 and key cost components include but are not limited to: construction; geotechnical (e.g., soils reports); deputy testing/inspections; architectural and engineering services; furniture, fixtures and equipment; temporary facilities and relocation expenses; electrical systems and special equipment; utility connection services and fees; and program and construction management firm overhead, fees and reimbursables. The table below shows estimated construction costs and other major cost categories. The City is currently in Phase 1 of the Police Station Project involving design and concept review, pre-construction and constructability review, and a GMP development/negotiation. Phase 1 of the Police Station Project is expected to be completed by the end of 2026. Phase 2 of the Police Station Project involving the construction of the Police Station Project is expected to be completed in the Fall of 2029.

Key Budget Components/Categories
Phase 1 Pre-Construction Design & Support Services
$2,400,000
Phase 2 Construction Materials & Labor
26,500,000
Phase 2 Construction Services (GC/GR), Administrative Oversight, and Project Management for Progressive Design-Build
9,750,000
Temporary Facilities and Relocation During Construction 2,000,000
Environmental, Testing, Utilities, FF&E, and Misc.
2,700,000
Contingency
2,000,000
TOTAL
$45,350,000

ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds with respect to the Bonds are as follows:

Sources:

Principal Amount
Plus Premium
Total Sources
Uses:

Deposit to Project Account of the Capital Project Fund
Deposit to Interest Account of the Bond Fund(1)
Costs of Issuance(2)
Total Uses
(1) To be applied to the payment of all interest on the Bonds through ___________ ____. (2) Cost of issuance include Underwriter’s discount, legal fees, printing costs, rating agency fee, municipal advisor fee and other miscellaneous expenses.

DEBT SERVICE SCHEDULE
The annualized scheduled debt service payable with respect to the Bonds is as follows (assuming no optional redemption prior to maturity):

Bond Year Ending September 1
Principal
Interest
Total
(1) All of the interest through _________ and a portion of the interest through ___________ will be paid from a portion of the original issue premium deposited in the Interest Account of the Bond Fund. See “ESTIMATED SOURCES AND USES OF FUNDS.”

SECURITY FOR THE BONDS
General
Pursuant to the Resolution, for the purpose of paying the principal of and interest on the Bonds, the City Council at the time of fixing the general tax levy will fix, and in the manner provided for such general tax levy, levy and collect annually until the Bonds are paid, or until there is a sum set apart for that purpose sufficient to meet all sums coming due for payment of principal of and interest on the Bonds, a tax sufficient to pay the annual principal of and interest on the Bonds as the same become due. In fixing such tax levy for each fiscal year, the City Council will take into account amounts then on deposit in the Tax Revenue Fund (as defined below under “Flow of Funds Under the Resolution”), if such amounts will be available to pay debt service on the Bonds. Said tax will be in addition to all other taxes levied for City purposes, will be collected at the time and in the same manner as other taxes of the City are collected, and will be used only for the payment of the Bonds and the interest thereon. Under the framework of the constitutional provisions and statutes applicable to California general obligation bonds, including the Bonds, taxes levied to pay debt service on the Bonds may not be used for any other purpose and are not available to support general City operations. See “PROPERTY TAXATION” herein.

Property tax revenues result from the application of the appropriate tax rate to the total assessed value of taxable property in the City. The annual property tax rate for repayment of the Bonds will be based on the total assessed value of taxable property in the City and the scheduled debt service on the Bonds in each year, less any other lawfully available funds applied by the City for repayment of the Bonds. Fluctuations in the annual debt service on the Bonds, the assessed value of taxable property in the City, and the availability of such other funds in any year, may cause the annual property tax rate applicable to the Bonds to fluctuate. In general, if overall assessed values of taxable property in the City were to decline, then the City, in order to generate sufficient tax revenues to pay debt service on the Bonds and other general obligation bonds, would increase tax rates applicable to the Bonds and other general obligations bonds, if any. See “PROPERTY TAXATION” herein.

Pursuant to Section 53515 of the California Government Code, the Bonds will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the ad valorem taxes levied for the Bonds. See “Statutory Lien on Taxes (Senate Bill 222)” below.

Pursuant to the Resolution, the City will pledge the Tax Revenues Fund and the Bond Fund (as defined under “Flow of Funds Under the Resolution”) and all accounts and amounts on deposit therein for the payment of the principal of and interest on the Bonds when and as the same become due. See “Pledge” below.

Under the Resolution, the City is not obligated to pay the debt service from any sources other than as described above. This Official Statement, including Appendix A hereto, provides information on the City’s overall operations and finances with an emphasis on its General Fund and therefore includes information on revenues and other funds that are not pledged to the Bonds under the Resolution and that should not be considered available to pay debt service on the Bonds.

Flow of Funds Under the Resolution
Tax Revenues Fund. The Resolution provides for the establishment of a special fund for the Bonds with the City (the “Tax Revenues Fund”) to be held separate and apart from all other accounts. All taxes collected by the City for the payment of debt service shall be deposited into the Tax Revenues Fund. The Tax Revenues Fund and all accounts therein shall be established, maintained and administered by an Authorized Officer pursuant to Resolution and the Fiscal Agent Agreement. An authorized Officer shall cause amounts on deposit in the Tax Revenues Fund to be transferred to the Fiscal Agent for payment of the principal of, premium, if any, and interest on outstanding Bonds when due. Additional accounts and subaccounts within the Tax Revenues Fund may be established.

The City Council shall take such actions annually as are necessary or appropriate to cause the debt service on the Bonds due in any fiscal year to be included in the budget for such fiscal year and to make the necessary appropriations therefor.

Bond Fund. The Resolution provides for the establishment of a separate bond fund with the Fiscal Agent (the “Bond Fund”) to be kept separate and apart from all other funds. The Bond Fund and all accounts therein will be administered by the Fiscal Agent. The Fiscal Agent shall deposit in the Bond Fund from the proceeds of sale of the Bonds, all or a portion of the moneys received on account of original issue premium and interest accrued on the Bonds to the date of payment of the purchase price thereof as directed by the City, and such other moneys, if any, as may be specified in the Fiscal Agent Agreement. So long as any of the Bonds are outstanding, moneys in the Bond Fund shall be used and applied by the Fiscal Agent solely for the purpose of paying the principal of and interest on the Bonds as such principal and interest shall become due and payable, or for purchase of Bonds; provided, however, that when all of the principal of and interest on the Bonds have been paid, any moneys then remaining in such Bond Fund shall be transferred to the City for any legally permitted purpose.

Bond Fund Accounts. The Resolution provides that (i) on or before five (5) Business Days prior to March 1 and September 1 in each year that any of the Bonds are outstanding, an Authorized Officer shall transfer from the Tax Revenues Fund to the Fiscal Agent to set aside in a special account to be designated as the “Interest Account,” which shall be an account within the Bond Fund, an amount which will be equal to the aggregate amount of the interest becoming due and payable on each the Bonds outstanding on the such Interest Payment Date, for the purpose of paying the interest on the Bonds, and (ii) on or before five (5) Business Days prior to September 1 in each year that any of the Bonds are outstanding, an Authorized Officer shall transfer from the Tax Revenues Fund to the Fiscal Agent to set aside in a special account to be designated as the “Principal Account,” which shall be an account within the Bond Fund, an amount which will be equal to the principal on the Bonds outstanding that will become due and payable on such September 1, including those Bonds subject to mandatory redemption on such date pursuant to the provisions of the Fiscal Agent Agreement, for the purpose of paying the principal and mandatory redemption of the Bonds.

All moneys in the Bond Fund shall be used and withdrawn by the Fiscal Agent solely for the purpose of paying the principal of (including mandatory redemption), premium, if any, and interest on the Bonds as the same shall become due and payable.

Investments. All funds held by the City with respect to the Bonds shall be invested by the City Treasurer pursuant to the City’s policies and guidelines for investment of moneys in the general fund (“General Fund”) of the City, any investment authorized by the Fiscal Agent Agreement or pursuant to Sections 53601 and 53635 of the Government Code, or in investment agreements, including guaranteed investment contracts, float contracts or other investment products (hereinafter collectively referred to as “Investment Agreements”); provided that such agreements comply with the requirements of Section 148 of the Code, and with the requirements of each rating agency then rating the Bonds necessary in order to maintain the then-current rating on the Bonds, if any.

Moneys held in any of the funds and accounts under the Fiscal Agent Agreement by the Fiscal Agent shall be invested at the Written Order of the City Treasurer in investments pursuant to the City’s policies and guidelines for investment of moneys in the General Fund or in Investment Agreements so as to effectively coordinate the investments to the construction program of the City and the debt service payments on the Bonds or to comply with the tax covenants of the City, which shall be deemed at all times to be a part of such funds and accounts. Any loss or investment earnings resulting from such investments shall credited or charged to the fund or account from which such investment was made. The City Treasurer or Finance Director, or both, is authorized to establish accounts with banking institutions to the extent necessary or convenient to provide for the management of any such investments. See APPENDIX C – CITY OF REDONDO BEACH INVESTMENT POLICY.” Pledge
Pursuant to the Resolution, the City will pledge the Tax Revenues Fund and the Bond Fund and all accounts and amounts on deposit therein for the payment of the principal of and interest on Bonds when and as the same become due, including the principal of any term Bonds required to be paid upon the mandatory sinking fund redemption thereof. In addition, the payment of such principal and interest will be secured by the statutory lien of California Government Code Section 53515, to the extent applicable to the amounts of ad valorem taxes on deposit in the Tax Revenues Fund and the Bond Fund. The Bonds will be equally and ratably secured by this pledge, the foregoing statutory lien, and the taxes collected as described above.

Statutory Lien on Taxes (Senate Bill 222)
Pursuant to Section 53515 of the California Government Code, the Bonds will be secured by a statutory lien on all revenues received pursuant to the levy and collection of the ad valorem taxes levied for the Bonds. Section 53515 of the California Government Code provides that the lien will automatically arise, without the need for any action or authorization by the local agency or its governing board, and will be valid and binding from the time the Bonds are executed and delivered. Section 53515 of the California Government Code further provides that the revenues received pursuant to the levy and collection of the tax will be immediately subject to the lien, and the lien will immediately attach to the revenues and be effective, binding and enforceable against the local agency, its successor, transferees and creditors, and all others asserting rights therein, irrespective of whether those parties have notice of the lien and without the need for physical delivery, recordation, filing or further act. See “CERTAIN RISK FACTORS – Limitation on Remedies; Bankruptcy.”

PROPERTY TAXATION
The information in this section describes ad valorem property taxation, assessed valuation and other measures of the tax base of the City. The Bonds are payable solely from ad valorem taxes levied and collected by the County on taxable property in the City. The City’s General Fund is not a source for repayment of the Bonds.

General
The County levies property taxes on behalf of the City for the City’s general operating purposes as well as for the payment of voter-approved general obligation bonds, including the Bonds. Taxes levied to pay debt service for general obligation bonds may only be applied for that purpose. In general, if overall assessed values of taxable property in the City were to decline then the City, in order to generate sufficient tax revenues to pay debt service on the Bonds, would increase tax rates applicable to the Bonds.

Property Tax Collection Procedures
In California, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” The “secured roll” is that part of the assessment roll containing state assessed public utilities’ property and property, the taxes on which are a lien on real property sufficient, in the opinion of the county assessor, to secure payment of the taxes. A tax levied on unsecured property does not become a lien against such unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens arising pursuant to State law on such secured property, regardless of the time of the creation of the other liens. Secured and unsecured property are entered separately on the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property.

Property taxes on the secured roll are due in two installments, on November 1 and April 1 of each fiscal year. If unpaid, such taxes become delinquent after December 10 and April 10, respectively, and a 10% penalty attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1-1/2% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County.

Property taxes are levied for each fiscal year on taxable real and personal property situated in the taxing jurisdiction as of the preceding January 1. A bill enacted in 1983, SB813 (Statutes of 1983, Chapter 498), however, provided for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Thus, this legislation eliminated delays in the realization of increased property taxes from new assessments. As amended, SB813 provided increased revenue to taxing jurisdictions to the extent that supplemental assessments of new construction or changes of ownership occur subsequent to the January 1 lien date and result in increased assessed value.

Property taxes on the unsecured roll are due on the January 1 lien date and become delinquent, if unpaid on the following August 31. A 10% penalty is also attached to delinquent taxes in respect of property on the unsecured roll, and further, an additional penalty of 1-1/2% per month accrues with respect to such taxes beginning the first day of the third month following the delinquency date.

The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder’s office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes in respect of property on the secured roll is the sale of the property securing the taxes for the amount of taxes which are delinquent.

Certain counties within the State, including the County, have adopted an “Alternative Method of Distribution of Tax Levies and Collections and Tax Sale Proceeds” authorized under the State Revenue and Taxation Code (the “Teeter Plan”). Under the Teeter Plan, counties may opt to remit to local agencies 100% of the tax levy for each year in exchange for counties retaining any subsequent delinquent payments, penalties and interest that would have been due to the local agency. The County has not elected to implement the Teeter Plan. As such, the City’s property tax revenues reflect both reduced property tax revenue from uncollected taxes and increased revenue from the subsequent receipt of delinquent taxes, interest and penalty payments.

Taxation of State-Assessed Utility Property
The State Constitution provides that most classes of property owned or used by regulated utilities are assessed by the State Board of Equalization (“SBE”) and taxed locally. Property valued by the SBE as an operating unit in a primary function of the utility taxpayer is known as “unitary property,” a concept designed to permit assessment of the utility as a going concern rather than assessment of each individual element of real and personal property owned by the utility taxpayer. State-assessed unitary and “operating nonunitary” property (which excludes nonunitary property of regulated railways) is allocated to the counties based on the situs of the various components of the unitary property. Except for unitary property of regulated railways and certain other excepted property, all unitary and operating nonunitary property is taxed at special county-wide rates and tax proceeds are distributed to taxing jurisdictions according to statutory formulae generally based on the distribution of taxes in the prior year.

Assessed Valuation
Assessed Valuation History. The following is a table summarizing the historical assessed valuation of the taxable property in the City.

TABLE 1

CITY OF REDONDO BEACH

ASSESSED VALUATION OF TAXABLE PROPERTY
Fiscal Year
Secured
Unsecured
Exemptions
Net Total Assessed Valuation
Percent Change
2017-18
$15,487,047,432
$503,734,023
$(72,464,646)
$15,918,316,809
--
2018-19
16,319,856,189
502,134,122
(72,083,515)
16,749,906,796

5.2%
2019-20
17,103,886,152
521,213,745
(43,871,304)
17,581,228,593

5.0 2020-21
18,140,581,148
560,632,973
(55,071,992)
18,646,142,129

6.1 2021-22
18,740,971,054
600,897,525
(79,188,547)
19,262,680,032

3.3 2022-23
19,957,067,814
657,413,876
(101,991,595)
20,512,490,095

6.5 2023-24
21,052,786,773
670,781,411
(94,847,093)
21,628,721,091

5.4 2024-25
21,983,186,998
961,285,206
(143,960,673)
22,800,511,531

5.4 2025-26
22,985,713,259
774,290,730
(133,396,160)
23,626,607,829

3.6 2026-27
24,463,304,095
344,652,386
(126,978,223)
24,680,978,258

4.5 Source: Los Angeles County Auditor-Controller.

Factors Relating to Increases/Decreases in Assessed Value. As indicated in the previous table, assessed valuations are subject to change in each year. Increases or decreases in assessed valuation result from a variety of factors including but not limited to general economic conditions, supply and demand for real property in the area, government regulations such as zoning, and natural disasters such as earthquakes, fires, floods and droughts.

The City cannot predict or make any representations regarding the effects that natural disasters including but not limited to future earthquakes, fires, floods, droughts and related conditions may have on the value of taxable property within the City, or to what extent the effects said disasters might have had on economic activity in the City or throughout the State.

Property Tax Base Transfer Ballot Measure. On November 3, 2020, State voters approved a constitutional amendment entitled Property Tax Transfers, Exemptions and Revenue for Wildfire Agencies and Counties Amendment (“Proposition 19”), which will: (i) expand special rules that give property tax savings to homeowners that are over the age of 55, severely disabled, or whose property has been impacted by a natural disaster or contamination, when they buy a different home; (ii) narrow existing special rules for inherited properties; and (iii) broaden the scope of legal entity ownership changes that trigger reassessment of properties. The City cannot make any assurance as to what effect the implementation of Proposition 19 will have on assessed valuation of real property in the City.

Assessed Valuation by Land Use. The following table shows the land use of parcels in the City, according to assessed valuation. As shown, the majority of land in the City is used for residential purposes.

TABLE 2

CITY OF REDONDO BEACH

ASSESSED VALUATION AND PARCELS BY LAND USE
Fiscal Year 2026-27
Non-Residential:

Assessed Valuation (1)
% of Total
Parcels
% of Total
Commercial/Office
$1,725,970,788

7.1%
618

2.8%
Vacant Commercial
45,211,324

0.2 41

0.2 Industrial
1,319,284,541

5.4 52

0.2 Vacant Industrial
7,185,709

0.0 8

0.0 Recreational
4,251,194

0.0 10

0.1 Government/Institutional
38,446,433

0.2 45

0.2 Miscellaneous
508,570,180

2.1 12

0.1 Exempt
0 0.0
244

1.1 Subtotal Non-Residential
$3,648,920,169

15.0%
935

4.7%
Residential:

Single Family Residence
$9,648,007,376

39.6%
10,394

47.5%
Condominium/Townhouse
7,618,223,879

31.3 8,121

37.2 Mobile Home
876,985

0.0 1

0.0 2-4 Residential Units
1,793,521,786

7.4 1,690

7.7 5+ Residential Units/Apartments
1,533,143,095

6.3 495

2.3 Vacant Residential
94,298,064

0.4 131

0.6 Subtotal Residential
$20,688,071,185

85.0%
20,839

95.3%
TOTAL
$24,336,991,354
100.0%
21,862
100.0%
_______________________________________
(1) Local Secured Assessed Valuation, excluding tax-exempt property. Also excludes non-unitary utilities.

Source: Los Angeles County Assessor 2026/27 Combined Tax Rolls.

The County has not implemented the Teeter Plan and thus the City’s property tax revenues reflect both reduced property tax revenue from uncollected taxes and increased revenue from the subsequent receipt of delinquent taxes, interest and penalty payments.

The following table represents the City’s tax levy and collections for the last ten fiscal years. Prior to the issuance of the Bonds, the City had no general obligation bond debt.

TABLE 3

CITY OF REDONDO BEACH

PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Year
Total Tax
Levy
Current
Tax
Collections
Percent of
Levy
Collected
Delinquent
Tax
Collections
Total Tax
Collections
Total Collections as Percent of Current
Levy
2015-16
$32,883,797
$32,440,070

98.65%
$405,762
$32,845,833

99.88%
2016-17
34,125,966
33,690,049

98.72 388,499
34,078,548

99.86 2017-18
35,718,202
35,230,091

98.63 383,301
35,613,392

99.71 2018-19
37,267,914
36,719,102

98.53 364,627
37,083,729

99.51 2019-20
39,182,819
38,271,140

97.67 404,113
38,675,253

98.70 2020-21
40,917,175
40,165,051

98.16 602,163
40,767,214

99.63 2021-22
42,386,631
41,678,608

98.33 594,526
42,273,134

99.73 2022-23
45,094,012
44,393,742

98.45 574,364
44,968,106

99.72 2023-24
47,343,461
46,406,198

98.02 890,817
47,297,015

99.90 2024-25
49,584,654
48,541,865

97.90 218,160
48,760,025

98.34 Source: City of Redondo Beach, based on information provided by the County of Los Angeles Auditor/Controller.

Appeals of Assessed Value
Under California law, property owners may apply for a reduction of their property tax assessment by filing a written application, in form prescribed by the SBE, with the appropriate county board of equalization or assessment appeals board. The County Assessor may independently reduce assessed values as well based upon the above factors or reductions in the fair market value of the taxable property. In most cases, an appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value. Any reduction in the assessment ultimately granted as a result of such appeal applies to the year for which application is made and during which the written application was filed. A second type of assessment appeal involves a challenge to the base year value of an assessed property. Appeals for reduction in the base year value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date.

In addition to the above-described taxpayer appeals, county assessors may independently reduce assessed valuations based on changes in the market value of property, or for other factors such as the complete or partial destruction of taxable property caused by natural or man-made disasters such as earthquakes, floods, drought, fire, or toxic contamination pursuant to relevant provisions of the State Constitution.

Whether resulting from taxpayer appeals or county assessor reductions, adjustments to assessed value are subject to yearly reappraisals by the county assessor and may be adjusted back to their original values when real estate market conditions improve. Once property has regained its prior assessed value, adjusted for inflation, it once again is subject to the annual inflationary growth rate factor allowed under Article XIIIA. See “CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS” herein.

No assurance can be given that property tax appeals currently pending or in the future, actions by the County assessor, or other factors in the future will not significantly reduce the assessed valuation of property within the City.

Assembly Bill 102. On June 27, 2017, the Governor signed into law Assembly Bill 102 (“AB 102”). AB 102 restructured the functions of the SBE and created two new separate agencies: (i) the California Department of Tax and Fee Administration, and (ii) the Office of Tax Appeals. Under AB 102, the California Department of Tax and Fee Administration will take over programs previously in the SBE Property Tax Department, such as the Tax Area Services Section, which is responsible for maintaining all property tax-rate area maps and for maintaining special revenue district boundaries. Under AB 102, the SBE continues to perform the duties assigned by the State Constitution related to property taxes, however, beginning January 1, 2018, the SBE only hears appeals related to the programs that it constitutionally administers, and the Office of Tax Appeals will hear tax appeals on all other taxes and fee matters, such as sales and use tax and other special taxes and fees. AB 102 obligates the Office of Tax Appeals to adopt regulations as necessary to carry out its duties, powers, and responsibilities.

Tax Rates
The following table reflects the typical property tax rate per $100 of assessed value in various jurisdictions.

TABLE 4

CITY OF REDONDO BEACH

PROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTS
Fiscal Year Ended June 30
General City
City Debt Service*
Redondo Beach Unified School District
El Camino Community College District
Metropolitan Water District
Total
2017

1.00000%

0.00000%

0.09079%

0.02294%

0.00350%

1.11724%
2018

1.00000

0.00000

0.08630

0.02120

0.00350

1.11100
2019

1.00000

0.00000

0.08086

0.02223

0.00350

1.10659
2020

1.00000

0.00000

0.08428

0.02155

0.00350

1.10934
2021

1.00000

0.00000

0.08086

0.02362

0.00350

1.11142
2022

1.00000

0.00000

0.08430

0.02264

0.00350

1.09815
2023

1.00000

0.00000

0.07201

0.02299

0.00350

1.10360
2024

1.00000

0.00000

0.07234

0.02116

0.00350

1.09700
2025

1.00000

0.00000

0.06868

0.02101

0.00070

1.09669
2026

1.00000

0.00000

0.09379

0.02179

0.00700

1.12258
________________________________
* Prior to the issuance of the Bonds, the City had no outstanding general obligation debt.

Source: County of Los Angeles Tax Assessor and HdL Coren & Cone.

Principal Property Taxpayers
The following table shows the ten largest taxpayers in the City as determined by their gross assessed valuations in 2025-26. A large concentration of ownership in a single individual or entity results in a greater amount of tax collections which are dependent upon that property owner’s ability or willingness to pay property taxes.

TABLE 5

CITY OF REDONDO BEACH

TOP TEN PROPERTY TAXPAYERS
Fiscal Year 2025-26
Property Owner
Business Category
Fiscal Year 2025-26
Assessed Valuation
% of Total
Northrop Grumman Systems Corporation
Aerospace
$750,206,538

3.18%
South Bay Center SPE LLC
Shopping Center
191,051,013

0.81 Rexford Industrial Inc.

Industrial
111,595,847

0.47 Ray Pellegrino Trust
Residential
86,982,608

0.37 Kobe Group Inc.

Apartment Building
86,909,688

0.37 Terreno Santa Fe LLC
Industrial, Light Manufacturing
84,827,379

0.36 Extra Space Properties Two LLC
Industrial
83,370,474

0.35 Noble House Recp Hotel Venture LLC
Hotel
80,694,400

0.34 9300 Wilshire LLC
Industrial
72,216,732

0.31 Redondo Distribution Center LLC
Warehouse/Distribution
61,202,333

0.26 Total principal property taxpayers gross assessed value $1,609,057,012

6.81%
Total City Assessed Value
$23,626,607,829
________________________________
Source: Los Angeles County Assessor 2025/26 Combined Tax Rolls and the SBE Non Unitary Tax Roll.

Direct and Overlapping Debt
Set forth on the following page is a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. as of August 4, 2026. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representation in connection therewith.

The Debt Report generally includes long-term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such long-term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency.

The table shows the percentage of each overlapping entity’s assessed value located within the boundaries of the City. The table also shows the corresponding portion of the overlapping entity’s existing debt payable from property taxes levied within the City. The total amount of debt for each overlapping entity is not given in the table.

The first column in the table names each public agency which has outstanding debt as of the date of the report and whose territory overlaps the City in whole or in part. The second column shows the percentage of each overlapping agency’s assessed value located within the boundaries of the City. This percentage, multiplied by the total outstanding debt of each overlapping agency (which is not shown in the table) produces the amount shown in the third column, which is the apportionment of each overlapping agency’s outstanding debt to taxable property in the City.

TABLE 6

CITY OF REDONDO BEACH

STATEMENT OF DIRECT AND OVERLAPPING DEBT
As of August 4, 2026
2025-26 Assessed Valuation: $23,626,607,829
Total Debt City’s Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/26 % Applicable (1) Debt 6/30/26 Metropolitan Water District $16,045,000 0.555% $ 89,050 Los Angeles County Flood Control District 100,000,000 1.104 1,104,000 El Camino Community College District 453,379,729 14.358 65,096,261 Redondo Beach Unified School District 249,261,276 100. 249,261,276 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $315,550,587 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Los Angeles County General Fund Obligations $3,757,654,203 1.082% $ 40,657,818 Los Angeles County Superintendent of Schools Certificates of Participation 1,824,136 1.082 19,737 City of Redondo Beach General Fund Obligations 219,865,000 100. 219,865,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $260,542,555 TOTAL DIRECT DEBT $219,865,000
TOTAL OVERLAPPING DEBT $356,228,142
COMBINED TOTAL DEBT $576,093,142 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2025-26 Assessed Valuation:

Total Direct Debt ($219,865,000) 0.93%
Total Overlapping Tax and Assessment Debt 1.34%
Combined Total Debt 2.44%
___________________
Source: California Municipal Statistics.

CONSTITUTIONAL AND STATUTORY LIMITS ON TAXES, REVENUES AND APPROPRIATIONS Article XIII A of the State Constitution
Section 1(a) of Article XIII A of the State Constitution (“Article XIII A”) limits the maximum ad valorem tax on real property to 1% of full cash value (as defined in Section 2 of Article XIII A), to be collected by each county and apportioned among the county and other public agencies and funds according to law. Section 1(b) of Article XIII A provides that the 1% limitation does not apply to (i) ad valorem taxes to pay interest or redemption charges on indebtedness approved by the voters prior to July 1, 1978, or (ii) any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition, or (iii) any bonded indebtedness incurred by a school district, community college district or county office of education for the construction, rehabilitation or replacement of school facilities or the acquisition or lease of real property for school facilities approved after November 8, 2000 by 55% of the voters of the district or county, as appropriate, voting on the proposition. Section 2 of Article XIII A defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 197576 tax bill under ‘full cash value’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment” (“Full Cash Value”). The Full Cash Value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or to reflect a reduction in the consumer price index or comparable data for the area under taxing jurisdiction, or may be reduced in the event of declining property value caused by substantial damage, destruction or other factors. Taxpayers in the City may appeal the determination of the Los Angeles County Assessor of the Full Cash Value of their property. At any given point in time, appeals are pending in the City. If the assessed value of a property is reduced as a result of an assessment appeal, the reduction is borne by relevant taxing agencies, including the City.

Legislation enacted by the State Legislature to implement Article XIII A provides that, notwithstanding any other law, local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above.

The voters of the State have approved amendments to Article XIII A. One such amendment generally provides that the purchase or transfer of (i) real property between spouses or (ii) the principal residence and the first $1,000,000 of the Full Cash Value of other real property between parents and children, do not constitute a “purchase” or “change of ownership” triggering reappraisal under Article XIII A. Another amendment permits the State Legislature to allow persons over the age of 55 who meet certain criteria or “severely disabled homeowners” who sell their residence and buy or build another of equal or lesser value within two years in the same county, to transfer the old residence’s assessed value to the new residence. Another amendment permits the State Legislature to allow persons who are either 55 years of age or older, or who are “severely disabled,” to transfer the old residence’s assessed value to their new residence located in either the same or a different county and acquired or newly constructed within two years of the sale of their old residence.

In 1990, the voters approved a further amendment of Article XIII A to permit the State Legislature to exclude from the definition of “new construction” certain additions and improvements, including seismic retrofitting improvements and improvements utilizing earthquake hazard mitigation technologies constructed or installed in existing buildings after November 6, 1990.

Article XIII A has also been amended to provide that there would be no increase in the Full Cash Value base in the event of reconstruction of property damaged or destroyed in a disaster.

Section 4 of Article XIII A provides that cities, counties and special districts cannot, without a two-thirds vote of the qualified electors, impose “special taxes.” Article XIII B of the State Constitution – Gann Limit
State and local government agencies in the State are each subject to an annual “appropriations limit” imposed by Article XIII B of the State Constitution (“Article XIII B”). Article XIII B prohibits government agencies and the State from spending “appropriations subject to limitation” in excess of the appropriations limit imposed. The base year for establishing such appropriations limit is fiscal year 197879. “Appropriations subject to limitation” are generally authorizations to spend “proceeds of taxes,” which include all, but are not limited to, tax revenues, and the proceeds from (i) regulatory licenses, user charges or other user fees to the extent that such proceeds exceed “the cost reasonably borne by that entity in providing the regulation, product, or service,” (ii) the investment of tax revenues, and (iii) certain subventions received from the State. No limit is imposed on appropriations of funds which are not “proceeds of taxes,” appropriated for debt service on indebtedness existing prior to the passage of Article XIII B or authorized by the voters, or appropriations required to comply with certain mandates of courts or the federal government.

As amended at the June 5, 1990 election by Proposition 111, Article XIII B provides that, in general terms, an agency’s appropriations limit is based on the limit for the prior year adjusted annually to reflect changes in cost of living, population and, when appropriate, transfer of financial responsibility of providing services from one governmental unit to another. Proposition 111 liberalized the aforementioned adjustment factors as compared to the original provisions of Article XIII B. If an agency’s revenues during any two consecutive fiscal years exceed the combined appropriations limits for those two years, the excess must be returned by a revision of tax rates or fee schedules within the two subsequent fiscal years.

Section 7900, et seq. of the State Government Code defines certain terms used in Article XIII B and sets forth the methods for determining the appropriations limits for local jurisdictions. The City is well below its appropriation limit for fiscal year 2024-25. The City’s appropriations limit for fiscal year 2024-25 is $401 million, with approximately $199 million of the City’s appropriations being subject to this limit. The City cannot predict whether, when and how the appropriations limit might impact the City’s finances in the future.

Articles XIII C and XIII D of the State Constitution – Proposition 218 and Proposition 26 On November 5, 1996, the voters of the State approved Proposition 218, the “Right to Vote on Taxes Act.” Proposition 218 added Articles XIII C and XIII D to the State Constitution, which contain a number of provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.

Article XIII C of the State Constitution (“Article XIII C”) requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City require a majority vote, and taxes for specific purposes, even if deposited in the general fund, require a two-thirds vote. The voter approval requirements of Article XIII C reduce the City’s flexibility to deal with fiscal problems by raising revenue through new or extended or increased taxes and no assurance can be given that the City will be able to raise taxes in the future to meet increased expenditure requirements.

Article XIII D of the State Constitution (“Article XIII D”) contains several new provisions making it generally more difficult for local agencies to levy and maintain “assessments” for municipal services and programs. “Assessment” is defined to mean any levy or charge upon real property for a special benefit conferred upon the real property.

Article XIII D also contains several new provisions affecting a “fee” or “charge,” defined for purposes of Article XIII D to mean “any levy other than an ad valorem tax, a special tax, or an assessment, imposed by a local government upon a parcel or upon a person as an incident of property ownership, including user fees or charges for a property related service.” All new and existing property related fees and charges must conform to requirements prohibiting, among other things, fees and charges which (i) generate revenues exceeding the funds required to provide the property related service, (ii) are used for any purpose other than those for which the fees and charges are imposed, (iii) with respect to any parcel or person, exceed the proportional cost of the service attributable to the parcel, (iv) are for a service not actually used by, or immediately available to, the owner of the property in question, or (v) are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Further, before any property related fee or charge may be imposed or increased, written notice must be given to the record owner of each parcel of land affected by such fee or charge. The City must then hold a hearing upon the proposed imposition or increase, and if written protests against the proposal are presented by a majority of the owners of the identified parcels, the City may not impose or increase the fee or charge. Moreover, except for fees or charges for sewer, water and refuse collection services (or fees for electrical and gas service, which are not treated as “property related” for purposes of Article XIII D), no property related fee or charge may be imposed or increased without majority approval by the property owners subject to the fee or charge or, at the option of the local agency, two-thirds voter approval by the electorate residing in the affected area. The City has three enterprise funds that are self-supporting from fees and charges (refuse, water and electricity), two of which (water and refuse) have been judicially determined to be property-related for purposes of Article XIII D. As a result, the City has since 2000 followed the notice and public hearing requirements of Section 6 of Article XIII D before imposing or increasing any water or refuse service fees or charges.

However, California courts have held that property-related fees that are used by a city for general fund purposes and that are not compensation to the city for the costs of providing the related service are an impermissible tax under Article XIII D. Under Section 1408 of the City Charter, last approved by the voters in 1993, the City annually transfers up to 6% of the gross revenue of the water enterprise fund to the General Fund.

In addition to the provisions described above, Article XIII C extends the people’s initiative power to the reduction or repeal of local taxes, assessments, and fees and charges imposed prior to its effective date (November 1996). Consequently, the voters of the City could, by future initiative, repeal, reduce or prohibit the future imposition or increase of any local tax, assessment, fee or charge. The California Supreme Court held in Bighorn-Desert View Water Agency v. Verjil, 39 Cal. 4th 205 (2006) that, under Article XIII C local voters by imitative may reduce a public agency’s water rates and delivery charges, as those are property-related fees or charges within the meaning of Article XIII D, and noted that the initiative power described in Article XIII C may extend to a broader category of fees and charges than the property-related fees and charges governed by XIII D (“assessment,” “fee” and “charge,” are not defined in Article XIII C, so it was initially unclear whether the definitions of these terms in Article XIII D (which are generally property-related as described above) would limit the scope of the initiative power set forth in Article XIII C). Accordingly, the Article XIII C initiative power could potentially apply to non-property-related revenue sources that currently constitute a substantial portion of general fund revenues. No assurance can be given that the voters of the City will not, in the future, approve initiatives that repeal, reduce or prohibit the future imposition or increase of local taxes, assessments, fees or charges.

On November 2, 2010, voters in the State approved Proposition 26. Proposition 26 amends Article XIII C of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” except the following: (1) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (2) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (3) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (4) a charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property; (5) a fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law; (6) a charge imposed as a condition of property development; and (7) assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Proposition 26 also provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.

Franchise fees relating to solid waste collection has been the subject of recent litigation. In the case of Robert Zolly et al. v. City of Oakland, two franchises awarded by the City of Oakland for recycling and municipal waste services were subject to challenge under Proposition 26. The City of Oakland argued that the franchise fees fell within the exception of Proposition 26 described under subdivision (d) (“a charge for entrance to or use of local government property, or the purchase, rental, or lease of local government property”). In its ruling issued on August 11, 2022, the California Supreme Court found that the City of Oakland had failed to demonstrate as a factual matter that the right to use city streets for travel (i.e. to haul recyclable and municipal waste), as others use them, is a property right for which a fee can be imposed. The factual question was remanded for consideration in the trial court.

Proposition 1A
The California Constitution and existing statutes give the State Legislature authority over property taxes, sales taxes and the vehicle license fee (the “VLF”). The State Legislature has authority to change tax rates, the items subject to taxation and the distribution of tax revenues among local governments, schools, and community college districts. The State has used this authority for many purposes, including increasing funding for local services, reducing State costs, reducing taxation, addressing concerns regarding funding for particular local governments, and restructuring local finance.

The California Constitution generally requires the State to reimburse the local governments when the State mandates a new local program or higher level of service. Due to financial difficulties of the State in past years, it did not provide reimbursements for many mandated costs. In other cases, the State has suspended mandates, eliminating both responsibility of the local governments for complying with the mandate and the need for State reimbursements.

On November 3, 2004, the voters of the State approved Proposition 1A, which amended the California Constitution to, among other things, reduce the State Legislature’s authority over local government revenue sources by placing restrictions on the State’s access to local government’s property, sales and VLF revenues. Proposition 1A generally prohibits the shift of property tax revenues from cities, counties and special districts, except to address a “severe state financial hardship,” which must be approved by a two-thirds vote of both houses of the State Legislature, and only then if, among other things, such amounts were agreed to be repaid with interest within three years. The measure also (i) protects the property tax backfill of Sales Tax revenues diverted to pay the State’s economic recovery bonds, and the reinstatement of the Sales Tax revenues once such bonds are repaid, and (ii) protects local agency VLF revenue (or a comparable amount of backfill payments from the State).

If the State reduces the VLF rate below its current level of 0.65 percent of the vehicle value, Proposition 1A requires the State to provide local governments with equal replacement revenues. Proposition 1A provides two significant exceptions to the above restrictions regarding sales and property taxes. First, the State may shift to schools and community colleges up to 8 percent of local government property tax revenues if the Governor proclaims that the shift is needed due to a severe State financial hardship, the legislature approves the shift with a two-thirds vote of both houses and certain other conditions are met. The State must repay local governments for the diversion of their property tax revenues, with interest, within three years. Second, Proposition 1A allows the State to approve voluntary exchanges of local Sales Tax and property tax revenues among local governments within a county.

Proposition 1A amends the California Constitution to require the State to suspend certain State laws creating mandates in any year that the State does not fully reimburse local governments for their costs to comply with the mandates. If the State does not provide funding for the activity that has been determined to be mandated, the requirement on cities, counties or special districts to abide by the mandate would be suspended. In addition, Proposition 1A expands the definition of what constitutes a mandate to encompass State action that transfers to cities, counties and special districts financial responsibility for a required program for which the State previously had complete or partial financial responsibility. This provision does not apply to mandates relating to schools or community colleges, or to those mandates relating to employee rights.

Proposition 1A restricts the State’s authority to reallocate local tax revenues to address concerns regarding funding for specific local governments or to restructure local government finance. For example, the State could not enact measures that changed how local sales tax revenues are allocated to cities and counties. In addition, measures that reallocated property taxes among local governments in a county would require approval by two-thirds of the members of each house of the legislature (rather than a majority vote). As a result, Proposition 1A could result in fewer changes to local government revenues than otherwise would have been the case.

Proposition 22
Proposition 22 (“Proposition 22”) which was approved by California voters in November 2010, prohibits the State, even during a period of severe fiscal hardship, from delaying the distribution of tax revenues for transportation, redevelopment, or local government projects and services and prohibits fuel tax revenues from being loaned for cash-flow or budget balancing purposes to the State General Fund or any other State fund. In addition, Proposition 22 generally eliminates the State’s authority to temporarily shift property taxes from cities, counties, and special districts to schools, temporarily increase a school and community college district’s share of property tax revenues, prohibits the State from borrowing or redirecting redevelopment property tax revenues or requiring increased pass-through payments thereof, and prohibits the State from reallocating vehicle license fee revenues to pay for State-imposed mandates. In addition, Proposition 22 requires a two-thirds vote of each house of the State Legislature and a public hearing process to be conducted in order to change the amount of fuel excise tax revenues shared with cities and counties. Proposition 22 prohibits the State from enacting new laws that require redevelopment agencies to shift funds to schools or other agencies. While Proposition 22 will not change overall State and local government costs or revenues by the express terms thereof, it will cause the State to adopt alternative actions to address its fiscal and policy objectives. Due to the prohibition with respect to the State’s ability to take, reallocate, and borrow money raised by local governments for local purposes, Proposition 22 supersedes certain provisions of Proposition 1A (2004). In addition, Proposition 22 supersedes Proposition 1A of 2006. Accordingly, the State is prohibited from borrowing sales taxes or excise taxes on motor vehicle fuels or changing the allocations of those taxes among local governments except pursuant to specified procedures involving public notices and hearings.

Future Initiatives
Article XIII A, Article XIII B, Article XIII C, Article XIII D and the propositions described above were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time, other initiative measures could be adopted, which may place further limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations which may affect the City’s revenues or its ability to expend its revenues.

Risk Factors
The following risk factors associated with investing in Bonds, along with all other information in this Official Statement, should be considered by potential investors in evaluating an investment in the Bonds. The following list is not intended to be comprehensive of all risks of investing in the Bonds and no significance should be associated with the order of presentation of the risk factors The Bonds are payable from and secured by voter-approved property tax levy on all property within the City. The City is not obligated to pay the debt service on the Bonds from any other sources. This official statement, including Appendix A, .

Assessed Value of Taxable Property
The annual property tax rate for payment of the Bonds will be based on the total assessed value of taxable property in the City and the scheduled debt service on the Bonds in each year. Fluctuations in the annual debt service on the Bonds and/or in the assessed value of taxable property in the City may cause the annual property tax rate applicable to the Bonds to fluctuate. In addition, issuance by the City of additional authorized bonds payable from ad valorem property taxes may cause the overall property tax rate to increase. Discussed below are certain factors that may affect the City’s ability to levy and collect sufficient ad valorem taxes to pay scheduled debt service on the Bonds each year.

Total Assessed Value of Taxable Property in the City. The greater the assessed value of taxable property in the City, the lower the tax rate necessary to generate taxes sufficient to pay scheduled debt service on the City’s general obligation bonds.

Natural and economic forces can affect the assessed value of taxable property in the City. Natural and economic forces can affect the assessed value of taxable property within the City. The City is located in a seismically active region, and damage from an earthquake in or near the area could cause extensive damage to taxable property. Other natural or manmade disasters, such as floods, fire, wildfire, ongoing drought, toxic dumping, erosion, civil unrest or acts of terrorism, could cause a reduction in the assessed value of taxable property within the City. See the captions “ – Natural Hazards,” “ - Climate Issues” and “ – Changing Economic Conditions” below.

Economic and market forces, such as a downturn in the regional economy, could affect assessed values, particularly as these forces might reverberate in the residential housing and commercial property markets as has been experienced in the past. Total assessed values could also be reduced through the reclassification of taxable property to a class exempt from taxation, whether by ownership or use (such as exemptions for property owned by State and local agencies and property used for qualified educational, hospital, charitable or religious purposes).

Reductions in the market values of taxable property may cause property owners to appeal assessed values and may also be associated with an increase in delinquency rates for property taxes. Section 2(b) of Article XIIIA of the State Constitution and Section 51 of the State Revenue and Taxation Code, which were adopted pursuant to Proposition 8 in 1978, require the County assessor to annually enroll either a property’s adjusted base year value (the “Proposition 13 Value”) or its current market value, whichever is less. When the current market value replaces the higher Proposition 13 Value on the assessor’s roll, such lower value is referred to as the “Proposition 8 Value.” Although the annual increase for a Proposition 13 Value is limited to no more than 2%, the same restriction does not apply to a Proposition 8 Value. The Proposition 8 Value of a property is reviewed annually as of January 1; the current market value must be enrolled as long as the Proposition 8 Value falls below the Proposition 13 Value. Thus, any subsequent increase or decrease in market value is enrolled regardless of any percentage increase or decrease. Only when a current Proposition 8 Value exceeds the Proposition 13 Value attributable to a piece of property (adjusted for inflation) does a county assessor reinstate the Proposition 13 Value. See “PROPERTY TAXATION” for a discussion of the City’s assessed valuation, tax rates and delinquencies and assessment appeals. For a discussion of the City’s other taxes, see “APPENDIX A - CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION - CITY FINANCIAL INFORMATION.” Concentration of Taxable Property Ownership. The more property (by assessed value) owned by any single taxpayer, the more exposure of tax collections to weakness in that taxpayer’s financial situation and ability or willingness to pay property taxes. For Fiscal Year 2025-26, the top ten property taxpayers comprised 6.81% of the total assessed value in the City. See Table 5 herein.

Property Tax Rates. Another factor impacting the ability of taxpayers to pay additional taxes for general obligation bonds is the cumulative rate of tax. The total tax rate per $100 of assessed value (including the basic countywide 1% rate required by statute) is shown for each of the last ten years in Table 5 herein.

Additional Debt. Issuances of additional general obligation bonds can cause the overall property tax rate to increase.

Possible Limitations on Remedies; Bankruptcy
General. Following is a discussion of certain considerations in the event that the City should become a debtor in a bankruptcy proceeding. It is not an exhaustive discussion of the potential application of bankruptcy law to the City. The discussion is based on the United States Bankruptcy Code (the “Bankruptcy Code”) as now in effect and the few relevant judicial decisions to date. The Bankruptcy Code could be amended or construed differently in future judicial decisions (including as a result of possible future decisions in the pending analogous insolvency proceedings for the Commonwealth of Puerto Rico). Any such action could affect the possible application of bankruptcy law to the City.

Bankruptcy courts are courts of equity and as such have broad discretionary powers. If the City were to become the debtor in a proceeding under Chapter 9 of the Bankruptcy Code, bondholders may be prohibited from taking any action to collect any amount from the City (including ad valorem tax revenues) or to enforce any obligation of the City, without the bankruptcy court’s permission, except possibly as described below in the case of pledged “special revenues.” In such a proceeding, as part of its plan of adjustment in bankruptcy, the City may be able to alter the priority, interest rate, principal amount, payment terms, collateral, maturity dates, payment sources, covenants (including tax-related covenants), and other terms or provisions of the Bonds and other transaction documents related to the Bonds, including the obligation of the City to raise taxes if necessary to pay the Bonds, if the bankruptcy court determines that the plan is fair, equitable, not unfairly discriminatory to creditors as a whole, is in the best interests of creditors and otherwise complies with the Bankruptcy Code. There also may be other possible effects of a City bankruptcy proceeding that could result in delays or reductions in payments on the Bonds. Regardless of any specific adverse determinations in any City bankruptcy proceeding, the fact of a City bankruptcy proceeding could have an adverse effect on the liquidity and market price of the Bonds.

California law allows local governments to file for relief under Chapter 9 of the Bankruptcy Code, but only after attempting to resolve their fiscal problems with creditors, employee groups and other interested parties through a mediation process, unless the government entity declares a fiscal emergency.

Limitations on Plans of Adjustments. Chapter 9 of the Bankruptcy Code does not limit or impair the power of a state to control, by legislation or otherwise, a political subdivision of the state in the exercise of its political or governmental powers, including expenditures for the exercise. In addition, Chapter 9 prevents a bankruptcy court from interfering with the political or governmental powers of a political subdivision debtor, any of its property or revenues or the use or enjoyment of its income producing property, unless the political subdivision debtor confirms a plan of adjustment to that effect or consents to that action. State law provides that ad valorem taxes may be levied to pay the principal of and interest on the Bonds and other voter-approved general obligation bonds of the City in an unlimited amount, and that proceeds of such a levy must be used for the payment of principal of and interest on the City’s general obligation bonds, including the Bonds, and for no other purpose. Under State law, the City’s share of the 1% limited tax imposed by the County is the only ad valorem tax revenue that may be raised and expended to pay liabilities and expenses of the City other than its voter-approved debt, such as its general obligation bonds. If the City should become a debtor in a Chapter 9 proceeding, then it must propose a plan of adjustment of its debts. The plan may not become effective until confirmed by the bankruptcy court. The court may not confirm a plan unless it finds, among other conditions, that the City is not prohibited by law from taking any action necessary to carry out the plan, and that the plan is fair, equitable, does not unfairly discriminate among creditors as a whole, is in the best interests of creditors, and is feasible. If the State law restriction on the levy and expenditure of ad valorem taxes for payment of general obligation bonds is respected in a bankruptcy case, then such ad valorem taxes could be levied by the County only for payment of the Bonds and its other voter-approved general obligation bonds, or securities issued in their stead, and could not be used by the City for any other purpose under its plan.

If the City were a debtor in bankruptcy, it may be prevented from making payments to the Bondholders from funds in its possession. There may be other possible effects of a bankruptcy of the City that could result in delays or reductions in payments on the Bonds, which could have an adverse effect on the liquidity and value of the Bonds.

Statutory Lien. Pursuant to Senate Bill 222 (2015) (“SB 222”), all general obligation bonds issued by local agencies, including the Bonds, are secured by a statutory lien on all revenues received pursuant to the levy and collection of ad valorem taxes levied to pay the bonds. SB 222 provides that the lien will automatically arise, without the need for any action or authorization by the local agency or its governing board, and will be valid and binding from the time the bonds are issued. As a result, the lien on debt service taxes will continue to be valid with respect to post-petition receipts of debt service taxes, should the City become a Chapter 9 debtor. (Unlike most security interests created by agreement, statutory liens on post-petition revenues remain effective under the Bankruptcy Code.) The automatic stay provisions of the Bankruptcy Code would apply, however, thereby preventing bondholders from enforcing their rights to payment from such taxes (with the result that any payments becoming due and owing on the Bonds during the pendency of the Chapter 9 proceeding could be delayed), except possibly as described under “– Special Revenues” below. It is also possible that the bankruptcy court could approve an alternate use of such taxes, if the bondholders are afforded protection that the court determines to be adequate.

Special Revenues. If the ad valorem tax revenues that are pledged to the payment of the Bonds are determined to be “special revenues” within the meaning of the Bankruptcy Code, then the application by the County (or others with possession) of pledged ad valorem tax revenues that are collected after the date of the bankruptcy filing should not be subject to the automatic stay, and bondholders may be able to compel their immediate use to pay debt service, subject to the matters discussed below, including a decision by the United States Court of Appeals for the First Circuit. “Special revenues” are defined to include, among others, taxes specifically levied to finance one or more projects or systems of the debtor, but excluding receipts from general property, sales, or income taxes levied to finance the general purposes of the debtor. The City has specifically levied and pledged ad valorem taxes for payment of the Bonds. The Bonds were approved at an election held on a proposition that described the project for which the Bonds may be issued. As noted above, State law prohibits the use of the proceeds of the City’s debt service tax for any purpose other than payment of its general obligation bonds, and the bond proceeds may only be used to fund the acquisition or improvement of real property and other capital expenditures included in the proposition, so such tax revenues appear to fit the definition of special revenues. However, there is no binding judicial precedent dealing with the treatment in bankruptcy proceedings of ad valorem tax revenues collected for the payment of general obligation bonds in California, so no assurance can be given that a bankruptcy court would not hold otherwise.

Even if the ad valorem tax revenues that are pledged to the payment of the Bonds are determined to be “special revenues” within the meaning of the Bankruptcy Code, bondholders may not be able to compel that they be used to pay debt service during the pendency of a Chapter 9 proceeding. While the application of special revenues is exempt from the automatic stay by Section 922(d) of the Bankruptcy Code, the United States Court of Appeals for the First Circuit has interpreted that section to exempt only voluntary applications by the debtor and voluntary applications by creditors or others of property in their possession, and not to exempt actions by creditors to compel an application by others, and has held that a bankruptcy court lacks authority to compel the application of special revenues. In re The Financial Oversight and Management Board for Puerto Rico, 919 F.3d 121 (1st Cir. 2019). The U.S. Supreme Court declined to review the First Circuit decision. If the First Circuit’s interpretation is upheld and applied by courts in the Ninth Circuit and the State Superintendent (or State-appointed administrator) were to file a petition to initiate a Chapter 9 proceeding in respect of the City, bondholders would be stayed from seeking to compel the application of pledged ad valorem taxes to pay debt service on the Bonds during the pendency of the proceeding (in either federal or state court), which would leave bondholders with only state court remedies. Accordingly, even if the ad valorem tax revenues that are pledged to the payment of the Bonds are determined to be “special revenues,” a Chapter 9 proceeding could result in a substantial delay in the payment of debt service, if the City failed to apply pledged ad valorem taxes to pay debt service on the Bonds.

In addition, under the Bankruptcy Code, the exemption of special revenues from the automatic stay permits application of special revenues (other than municipal betterment assessments) “derived” from a project or system only if the application is subject to necessary operating expenses of the project or system. This rule applies regardless of the provisions of transaction documents. If a bankruptcy court were to conclude that the City’s tax collections are “derived” from a City project or system and are not akin to municipal betterment assessments, then the court could determine that such revenues may not be ordered (by itself or a state court) during the pendency of the bankruptcy proceeding to pay debt service to the extent that they are needed to pay necessary operating expenses of the City and may lawfully be applied for that purpose.

Possession of Tax Revenues; Remedies. If the City goes into bankruptcy and has possession of tax revenues (whether collected before or after commencement of the bankruptcy), and if the City does not voluntarily pay such tax revenues to the owners of the Bonds, it is not clear what procedures the owners of the Bonds would have to follow to attempt to obtain possession of such tax revenues, how much time it would take for such procedures to be completed, or whether such procedures would ultimately be successful.

Amounts Invested by City. The City is expected to be in possession of the annual ad valorem property taxes and certain funds to repay the Bonds and may invest these funds in as described in “SECURITY FOR THE BONDS.” Should those investments suffer losses, there may be delays or reductions in payments on the Bonds.

Opinion of Bond Counsel Qualified. The proposed forms of opinions of Bond Counsel, attached hereto as APPENDIX D, are qualified by reference to bankruptcy, insolvency and other laws relating to or affecting creditor’s rights.

Changing Economic Conditions
The general economy of the City is subject to the types of risks generally associated with all suburban real estate markets. Real estate prices may be adversely affected by changes in general economic conditions, fluctuations in the real estate market and interest rates, unexpected increases in home improvement costs and by other similar factor. In addition, if there is a significant decline in the general economy of the City, the owners of property within the City may be less able or less willing to make timely payment of property taxes or may petition for reduced assessed valuation causing a delay or interruption in the receipt of property tax revenues by the City.

Seismic Factors
The City, like most regions in the State, is located in an area of seismic activity and, therefore, could be subject to potentially destructive earthquakes. According to the City’s General Plan (the “General Plan”), the City lies within a seismically active region. The major faults are related to the San Andreas fault system. The Newport-Inglewood fault is located 6.5 miles east of the City. Aside from structural damage, earthquake activity can produce other types of adverse effects such as landslides, subsidence/settlement, and liquefaction. For more information, see the “Redondo Beach General Plan” on file with the City Clerk. The occurrence of severe seismic activity in the City could result in substantial damage to property located in the City, and could lead to successful appeals for reduction of assessed values of such property.

Risk of Floods, Fire or Tsunami
As with seismic hazards, the occurrence of a flood, tsunami or fire could result in the substantial interference with the use and occupancy of the Leased Property, which could result in substantial damage to property located in the City, and could lead to successful appeals for reduction of assessed values of such property. According to the City’s General Plan, predictive modeling for distantly generated tsunamis indicate that approximately five feet above sea level every 100 years and nine feet above sea level every 500 years are possible in the Redondo Beach area. The City adopted a local hazard mitigation plan, dated June 2020, containing goals to increase resiliency within City plans and processes to reduce threats to life and property, maintain basic local government operations and services during and following a hazard event, sustain public outreach and education of hazard risks and proper mitigation activities, improve interdepartmental and interjurisdictional partnerships for greater cooperation, foster a culture of respect and protection for natural systems and the local environment, and enhance post-disaster response capacity through civic leadership of local businesses, community organizations, and City residents.

Recently, Hurricane Marie formed south of Mexico and tracked northwest, sending south-facing beaches and exposed coastal areas of Los Angeles County and Orange County massive wave energy, which caused significant damage to certain coastal properties. The City was not impacted by such recent events.

Loss of Tax Exemption
The Code imposes a number of requirements that must be satisfied for interest on state and local obligations to be excludable from gross income for federal income tax purposes. These requirements include limitations on the use of Bond proceeds, limitations on the investment earnings of Bond proceeds prior to expenditure, a requirement that certain investment earnings on Bond proceeds be paid periodically to the United States and a requirement that issuers file an information return with the Internal Revenue Service (the “IRS”). The City has covenanted in certain of the documents referred to herein that it will comply with such requirements. Failure by the City to comply with the requirements stated in the Code and related regulations, rulings and policies may result in the inclusion of all or a portion of the interest on the Bonds in federal gross income, retroactively to date of original delivery of the Bonds.

The IRS Tax Exempt and Government Entities Division has a division that is devoted to tax-exempt bond compliance and that has been active in examining tax-exempt bond transactions such as the Bonds. There can be no assurance as to the of an examination on the market price of the Bonds in the event that they are selected for examination. The City has not sought to obtain a private letter ruling from the IRS with respect to the Bonds, and the opinion of Bond Counsel is not binding on the IRS. See “TAX MATTERS” herein.

Current and future legislative proposals, if enacted into law, clarifications of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation, or to be subject to state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. Legislative proposals arise from time to time, and may currently be under consideration, which would limit the exclusion of gross income of interest on obligations such as the Bonds to some extent for taxpayers who are individuals and whose income is subject to higher marginal income tax rates, or that could significantly reduce the benefit of, or otherwise affect, the exclusion of gross income from interest on obligations like the Bonds. The introduction or enactment of any such legislative proposals, clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or the marketability of, the Bonds.

Cybersecurity
The City and the County, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations and finances. As a recipient and provider of personal, private or other electronic sensitive information, the City and the County are potentially subject to multiple cyber threats including, but not limited to, hacking, viruses, malware, ransomware and other attacks on computer and other sensitive digital networks and systems. Entities or individuals may attempt to gain unauthorized access to the City’s or the County’s systems for the purposes of misappropriating assets or information or causing operational disruption or damage. The City has implemented measures to protect against cybersecurity attacks, including perimeter firewalls, malicious domain blocking, anti-virus, spyware, adware, malware software, and provides training to its staff on how to avoid potential cyber threats. However, no assurances can be given that the security and operational control measures of the City will be successful in guarding against any and each cyber threat or breach. The City has cybersecurity insurance.

The City is reliant on the County’s tax collectors for the levy and collection of the ad valorem taxes, and on the Fiscal Agent. No assurance can be given that the City’s, County’s, Fiscal Agent’s, or others efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack would not materially impact the operations or finances of any entity, including with respect to the administration of the Bonds. No assurances can be given that security and operational control measures will ensure against any and all cybersecurity threats and attacks. A cybersecurity incident or breach could damage the City’s information technology systems and cause disruption to City services and operations and/or affect the owners of the Bonds. The cost of any such disruption or remedying damage caused by future attacks could be substantial.

Public Health Emergencies
In recent years, public health authorities have warned of threats posed by outbreaks of disease and other public health threats. On February 11, 2020 the World Health Organization (“WHO”) announced the official name for the outbreak of COVID‐19, an upper respiratory tract illness. COVID-19 spread across the globe and the WHO declared the COVID-19 outbreak to be a pandemic. The spread of COVID-19 had significant adverse health and financial impacts throughout the world, including the City.

With significant decline in COVID-19 case rates and increase in vaccination rates, emergency orders have been lifted. There could be future COVID-19 outbreaks or other public health emergencies that could have material adverse effects on the operations and finances of the City. The City is unable to predict what impact public health emergencies will have on the business operations and financial condition of the City, but the impact could be significant.

Notwithstanding the impacts that COVID-19 may have on the global, national or local economy, or on the City’s revenues, the Bonds are voter-approved general obligations of the City payable solely from the levy and collection of ad valorem property taxes and are not payable from the general fund of the City. The City’s assessed valuation and property-related revenues have continued to grow at a steady rate. See “PROPERTY TAXATION” above. However, there can be no assurances that such growth will continue in the future.

Federal Legislation and Policy Risks
Federal policies involving taxation, appropriations, borrowing (including the debt ceiling), trade (including tariffs), immigration, climate change, clean energy and other topics can shift, sometimes dramatically, from one presidential administration or Congress to another. From time to time, such shifts can result in reductions to the level of federal funding for a variety of policy priorities, including transportation, housing, healthcare, social services and other federally funded programs. Recently, several such policy shifts, including delays in grants and other appropriations, have been proposed or promulgated through presidential executive orders and other official and unofficial actions at the federal level. The City cannot predict the outcome of such proposals and other actions, nor the potential impacts of any future such changes in federal policy. However, such changes could in the future have adverse effects on property tax revenue. See also “ - Loss of Tax Exemption” above.

FINANCIAL STATEMENTS
The audited basic financial statements (the “Financial Statements”) of the City for the year ended June 30, 2025, included in APPENDIX B - “CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2025,” have been examined by CliftonLarsonAllen LLP, independent auditors (the “Auditor”), to the extent and for the period indicated in its report (the “Report”), which also appears in APPENDIX B. The Financial Statements and the Report should be read in their entirety.

In the Report, the Auditor states that in planning and performing the audit, the Auditor considered the City’s internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing its opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the city’s internal control. The Auditor reported one material weakness and two significant deficiencies in internal control over financial reporting and made recommendations that the City finance department staff continue their efforts in improving the City’s internal controls over financial reporting, which recommendations the City management agreed with and are taking the necessary steps to strength internal controls over financial reporting. The City does not believe any of these findings have any impact on the City’s ability to pay debt service on the Bonds as they become due and payable.

The Financial Statements and Report for the year ended June 30, 2025 and for prior years are on file for public inspection with the City Clerk. The City has not requested nor received the consent of the Auditor to the reproduction of its Report in APPENDIX B - “CITY OF REDONDO BEACH ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2025.” The Auditor has not reviewed or expressed any opinion regarding any portion of this Official Statement other than the Financial Statements as stated in the Report.

TAX MATTERS
In the opinion of Best Best & Krieger LLP, Bond Counsel ("Bond Counsel"), based upon an analysis of existing laws, regulations, rulings, and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”) and is exempt from State of California personal income taxes. Bond Counsel is of the further opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual alternative minimum tax. Bond Counsel observes that interest on the Bonds included in adjusted financial statement income of certain corporations is not excluded from the federal corporate alternative minimum tax. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the amount, accrual or receipt of interest on, the Bonds.

To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the difference constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each beneficial owner thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax purposes and exempt from State of California personal income taxes. For this purpose, the issue price of a particular maturity of the Bonds is the first price at which a substantial amount of such maturity of the Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded semiannually (with straight-line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such Bonds. Beneficial owners of the Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of beneficial owners who do not purchase such Bonds in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public.

Bonds purchased, whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) (“Premium Bonds”) will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received, and a beneficial owner’s basis in a Premium Bond, will be reduced by the amount of amortizable bond premium properly allocable to such beneficial owner. Beneficial owners of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances.

The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. The City has made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest on the Bonds will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel’s attention after the date of issuance of the Bonds may adversely affect the value of, or the tax status of interest on, the Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events or matters.

Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of amounts treated as interest on, the Bonds may otherwise affect a beneficial owner’s federal, state or local tax liability. The nature and extent of these other tax consequences depends upon the particular tax status of the beneficial owner or the beneficial owner’s other items of income or deduction. Bond Counsel expresses no opinion regarding any such other tax consequences.

Current and future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals or clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding the potential impact of any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the Bonds for federal income tax purposes. It is not binding on the IRS or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the City, or about the effect of future changes in the Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The City has covenanted, however, to comply with the requirements of the Code.

Bond Counsel’s engagement with respect to the Bonds ends with the issuance of the Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the City, or the beneficial owners regarding the tax exempt status of the Bonds in the event of an audit examination by the IRS. Under current procedures, the beneficial owners, would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the City legitimately disagrees may not be practicable. Any action of the Internal Revenue Service, including but not limited to selection of the Bonds for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues, may affect the market price for, or the marketability of, the Bonds, and may cause the City, or the beneficial owners to incur significant expense.

A copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix D.

APPROVAL OF LEGALITY
Legal matters incident to the execution and delivery of the Bonds are subject to the approving opinion of Best Best & Krieger LLP, Los Angeles, California, Bond Counsel. A form of such opinion is attached hereto in APPENDIX D - “PROPOSED FORM OF OPINION OF BOND COUNSEL,” and copies of such opinion with respect to the Bonds will be available at the time of delivery of the Bonds. Certain legal matters will be passed upon for the City by the City Attorney and by Best Best & Krieger LLP, Los Angeles, California, as Disclosure Counsel. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement.

Best Best & Krieger LLP has served as Disclosure Counsel to the City and in such capacity has advised the City with respect to the requirements of applicable securities laws and participated with responsible City officials and staff in conferences and meetings where information contained in this Official Statement was reviewed for accuracy and completeness. Disclosure Counsel is not responsible for the accuracy or completeness of the information presented in this Official Statement and has not undertaken to independently verify any of such information. Rather, the City is solely responsible for the accuracy and completeness of the information contained in this Official Statement. No purchaser or holder of the Bonds, or other person or party other than the City, will be entitled to rely on the fact that Best Best & Krieger LLP has acted as Disclosure Counsel to the City.

LITIGATION
There is no pending litigation, notice of which has been received by the City, or, to the knowledge of the City, threatened litigation seeking to restrain or enjoin the issuance or delivery of the Bonds or questioning or affecting the validity of the Bonds or the proceedings or authority under which they are to be issued or the levy, collection and pledge of ad valorem taxes.

A number of unrelated suits and claims are pending against the City and related entities. In the opinion of the City, the results of such legal activities will not have a material adverse effect on the City’s ability to pay debt service on the Bonds.

CONTINUING DISCLOSURE
The City has undertaken for the benefit of holders and beneficial owners of the Bonds to provide certain financial information relating to the City and other data by not later than March 31 after the close of each fiscal year, commencing March 31, 2027 with the report for Fiscal Year 2025-26 (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The specific nature of the information to be contained in the Annual Report or the notices of enumerated events is set forth in “APPENDIX F – FORM OF CONTINUING DISCLOSURE AGREEMENT.” This undertaking has been made in order to assist the Underwriters in complying with Rule 15c2-12(b)(5) (the “Rule”) promulgated by the Securities and Exchange Commission under the Securities and Exchange Act of 1934, as amended. The City has previously entered into continuing disclosure agreements in connection with its prior bond issuances.

Continuing Disclosure History. Prior to the printing of this Official Statement, an examination was conducted of the continuing disclosure filings by the City during the past five years. The City has had one instance of late filing in the last five years. This occurred in 2026 as a result of the City’s delayed Fiscal Year 2024-25 audit and staffing turnover. Apart from this instance, there were no late or lack of filings within the past five years.

The City believes that their procedures with its dissemination agent are sufficient in the normal due course to assure substantial compliance with its continuing disclosure undertakings in the future. A failure by the City to comply with the provisions of the Continuing Disclosure Agreement is not an event of default under the Fiscal Agent Agreement (although the holders and beneficial owners of the Bonds do have remedies at law and in equity). However, a failure to comply with the provisions of the Continuing Disclosure Agreement must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds. Therefore, a failure by the City to comply with the provisions of the Continuing Disclosure Agreement may adversely affect the marketability of the Bonds on the secondary market.

RATING
S&P Global Ratings, a division of S&P Global Inc. (“S&P”), has assigned the Bonds a rating of “AA+.” Such rating reflects only the views of such rating organization and an explanation of the significance of such rating may be obtained from the rating agency at S&P Global Ratings, 55 Water Street, New York, NY 10041. The City furnished to the rating agency certain information and materials concerning the Bonds and the City. Generally, a rating agency bases its rating on such information and materials and on investigations, studies and assumptions made by the rating agency. There is no assurance that such rating will continue for any given period of time or that such rating will not be revised downward or withdrawn entirely by the rating agency, if in its judgment circumstances so warrant. Any such downward revision or withdrawal may have an adverse effect on the market price of the Bonds.

UNDERWRITING
The Bonds were awarded to ___________ (the “Underwriter”) pursuant to a competitive bidding held on ________, 2026. The Bonds were awarded to the Underwriter, at an aggregate purchase price of $__________, representing the par amount of the Bonds plus original issue premium of $__________, and less an Underwriter’s discount of $___________. The Underwriter will be obligated to purchase all of the Bonds if any of the Bonds are purchased.

The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts) and others at prices lower than the respective public offering prices stated or derived from information stated on the inside cover page hereof. The initial public offering prices may be changed from time to time by the Underwriter.

MUNICIPAL ADVISOR
Public Resources Advisory Group (the “Municipal Advisor”) has acted as Municipal Advisor to the City in conjunction with the delivery of the Bonds. The Municipal Advisor will receive compensation contingent upon the sale and delivery of the Bonds.

The Municipal Advisor has not audited, authenticated or otherwise independently verified the information set forth in the Official Statement, or any other information related to the City with respect to the accuracy or completeness of disclosure of such information. The Municipal Advisor makes no guaranty, warranty or other representation respecting the accuracy or completeness of this Official Statement or any other matter related to this Official Statement.

EXECUTION AND DELIVERY
The preparation, execution and distribution of this Official Statement have been authorized by the City.

CITY OF REDONDO BEACH
By:

Stephanie Meyer
Finance Director
APPENDIX A

CITY OF REDONDO BEACH FINANCIAL AND DEMOGRAPHIC INFORMATION APPENDIX B

CITY OF REDONDO BEACH

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
APPENDIX C

CITY OF REDONDO BEACH INVESTMENT POLICY
APPENDIX D

PROPOSED FORM OF OPINION OF BOND COUNSEL
APPENDIX E

BOOK-ENTRY SYSTEM
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the securities (the “Bonds”). The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation, and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a S&P Global Ratings’ rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. The information set forth on these websites is not incorporated by reference herein.

Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting right to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Principal, premium and redemption proceeds, distributions, and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the Fiscal Agent, on the payment date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participants and not of DTC nor its nominee, the Fiscal Agent or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, premium and redemption proceeds, distributions, and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Fiscal Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Fiscal Agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates for the Bonds are required to be printed and delivered.

The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, certificates for the Bonds will be printed and delivered to DTC.

The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.

The City cannot and do not give any assurances that DTC will distribute to Participants or that Participants or others will distribute to the Beneficial Owners payments of principal of and interest and premium, if any, on the Bonds paid or any redemption or other notices or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. The City is not responsible or liable for the failure of DTC or any Participant or Indirect Participant to make any payments or give any notice to a Beneficial Owner with respect to the Bonds or any error or delay relating thereto.

Neither the City nor the Fiscal Agent will have any responsibility or obligation to Participants, to Indirect Participants or to any Beneficial Owner with respect to (i) the accuracy of any records maintained by DTC, any Participant, or any Indirect Participant; (ii) the payment by DTC or any Participant or Indirect Participant of any amount with respect to the principal of or premium, if any, or interest on the Bonds; (iii) any notice that is permitted or required to be given to Holders under the Resolution and the Fiscal Agent Agreement; (iv) the selection by DTC, any Participant or any Indirect Participant of any person to receive payment in the event of a partial redemption of the Bonds; (v) any consent given or other action taken by DTC as Certificate Owner; or (vi) any other procedures or obligations of DTC, Participants or Indirect Participants under the book-entry system.

APPENDIX F

FORM OF CONTINUING DISCLOSURE AGREEMENT
C-64
ACTIVE 210135399v.9
296838809.9
55391.00010\45055026.555391.00010\45055026.5
55391.00010\45055026.5
55391.00010\45055026.5
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B-1
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55391.00010\45055026.5
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C-3
ACTIVE 210135399v.9
296838809.9
55391.00010\45055026.555391.00010\45055026.5
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C-1
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D-1
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E-3
55391.00010\45055026.555391.00010\45055026.5
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E-1
55391.00010\45055026.555391.00010\45055026.5
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F-1
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296838809.9
55391.00010\45055026.5
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ii
55391.00010\45055026.555391.00010\45055026.5
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i
55391.00010\45055026.555391.00010\45055026.5
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i
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18 55391.00010\45055026.555391.00010\45055026.5
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1 55391.00010\45055026.555391.00010\45055026.5
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Redondo Beach City CouncilOctober 13, 2026

Redondo Beach City Council
October 13, 2026