Annual Comprehensive
Financial Report
SIGNAL HILL COUNCIL
CITY HALL XIAMIRE
Cily of
FISCAL YEAR JUNE 30, 2022
CITY OF SIGNAL HILL, CALIFORNIA Those Hi
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CITY OF SIGNAL HILL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
Prepared by:
Department of Finance
Sharon del Rosario
Administrative Services Officer/Finance Director
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CITY OF SIGNAL HILL, CALIFORNIA
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING X
ELECTED OFFICIALS XI
CITY ORGANIZATION CHART XII
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (REQUIRED
SUPPLEMENTARY INFORMATION) 5
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION
STATEMENT OF ACTIVITIES 22
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUNDS
BALANCE SHEET 24
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION 27
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES 28
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 30
PROPRIETARY FUNDS
STATEMENT OF NET POSITION 31
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 32
STATEMENT OF CASH FLOWS 33
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 35
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 36
NOTES TO BASIC FINANCIAL STATEMENTS 39
CITY OF SIGNAL HILL, CALIFORNIA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND 91
HOUSING AUTHORITY SPECIAL REVENUE FUND 93
CAPITAL GRANTS SPECIAL REVENUE FUND 94
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 95
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY — MISCELLANEOUS 96
SCHEDULE OF CONTRIBUTIONS — MISCELLANEOUS 97
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION
LIABILITY — SAFETY 98
SCHEDULE OF CONTRIBUTIONS — SAFETY 99
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED 100
SUPPLEMENTARY INFORMATION
OTHER GOVERNMENTAL FUNDS
DESCRIPTION OF OTHER GOVERNMENTAL FUNDS 103
COMBINING BALANCE SHEET 106
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES 110
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
PARK DEVELOPMENT SPECIAL REVENUE FUND 114
HCDA GRANT SPECIAL REVENUE FUND 115
SPECIAL GAS TAX SPECIAL REVENUE FUND 116
TRANSPORTATION PROPOSITION A SPECIAL REVENUE FUND 117
PIPELINE REMOVAL SPECIAL REVENUE FUND 118
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND 119
WATER DEVELOPMENT SPECIAL REVENUE FUND 120
TRAFFIC IMPACT SPECIAL REVENUE FUND 121
TRANSPORTATION PROPOSITION C SPECIAL REVENUE FUND 122
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND 123
CITY OF SIGNAL HILL, CALIFORNIA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
LIGHTING AND LANDSCAPE SPECIAL REVENUE FUND 124
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 125
PUBLIC SAFETY STATE RESOURCES SPECIAL REVENUE FUND 126
HOUSING IMPACT SPECIAL REVENUE FUND 127
MTA-STPL GRANT SPECIAL REVENUE FUND 128
MEASURE M SPECIAL REVENUE FUND 129
TRANSPORTATION MEASURE R SPECIAL REVENUE FUND 130
PLANNING GRANTS SPECIAL REVENUE FUND 131
RMRA (SB1) SPECIAL REVENUE FUND 132
MEASURE W SPECIAL REVENUE FUND 133
STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION 137
FINANCIAL TRENDS
NET POSITION BY COMPONENT — LAST TEN FISCAL YEARS 138
CHANGES IN NET POSITION BY COMPONENT — LAST TEN FISCAL
140
FUND BALANCES OF GOVERNMENTAL FUNDS — LAST TEN
FISCAL YEARS 142
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS —
LAST TEN FISCAL YEARS 144
REVENUE CAPACITY
ASSESSED VALUE OF TAXABLE PROPERTY — LAST TEN FISCAL
YEARS 146
DIRECT AND OVERLAPPING PROPERTY TAX RATES — LAST TEN
FISCAL YEARS 147
PRINCIPAL PROPERTY TAX PAYERS — CURRENT YEAR AND NINE
YEARS AGO 148
PROPERTY TAX LEVIES AND COLLECTIONS — LAST TEN FISCAL
YEARS 149
DEBT CAPACITY
RATIOS OF OUTSTANDING DEBT BY TYPE — LAST TEN FISCAL
YEARS 150
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT 151
CITY OF SIGNAL HILL, CALIFORNIA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2022
LEGAL DEBT MARGIN INFORMATION — LAST TEN FISCAL YEARS 152 PLEDGED-REVENUE BOND COVERAGE: REDEVELOPMENT TAX
ALLOCATION BONDS — LAST TEN FISCAL YEARS 153
DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS — LAST TEN
CALENDAR YEARS 154
PRINCIPAL EMPLOYERS — CURRENT YEAR AND NINE YEARS AGO 155
OPERATING INFORMATION
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
DEPARTMENT — LAST TEN FISCAL YEARS 156
OPERATING INDICATORS BY FUNCTION — LAST EIGHT FISCAL
YEARS 157
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM — LAST
TEN FISCAL YEARS 158
INTRODUCTORY SECTION
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SIGN
CITY OF SIGNAL HILL
2175 Cherry Avenue • Signal Hill, CA 90755-3799
January 24, 2023
Honorable Mayor and Members of the City Council
City of Signal Hill
Signal Hill, California
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Signal Hill (City) for the fiscal year ended June 30, 2022. The purpose of this report is to provide the City Council, residents, general public, and interested parties with a broad financial outlook of the City, as well as to comply with state law.
The City's independent auditors, CLA CliftonLarsonAllen LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the City of Signal Hill's financial statements for the fiscal year ended June 30, 2022. The independent auditor's report is located at the front of the financial section of the ACFR.
This report consists of management's representations concerning the finances of the City. It was prepared by the Finance Department with the assistance of the City's independent auditors, CLA CliftonLarsonAllen LLP, in accordance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board. Management assumes full responsibility for the completeness and reliability of the information contained in this report. We believe the data presented conforms to governmental accounting and financial reporting standards and is accurate in all material aspects; it is presented in a manner designed to fairly set forth the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain a good understanding of the City's financial affairs have been included.
GAAP requires that management provide a narrative introduction and an overview to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). The MD&A immediately follows the independent auditor's report and should be read in conjunction with this transmittal letter.
(i)
Profile of the Government
The City of Signal Hill was incorporated in 1924 as a General Law City. On November 7, 2000, in a special election, the residents of Signal Hill approved a new City Charter, and the City effectively made the change from a General Law City to a Charter City under the California Constitution.
The City of Signal Hill, encompassing 2.25 square miles, is located in the southwestern coastal area of Los Angeles County and has a population of 11,712. It is 25 miles south of downtown Los Angeles, 8 miles northeast of the Port of Los Angeles, and 5 miles northeast of the seaport terminal of Long Beach.
Neighboring communities include the cities of Long Beach, Lakewood, Los Alamitos, and Carson.
Signal Hill, completely surrounded by the City of Long Beach, had historically been located in unincorporated territory. In 1924, in order to avoid Long Beach's per-barrel tax on oil, Signal Hill's founding members voted for incorporation. Oil production continued to be Signal Hill's mainstay until declining oil prices reduced production in the 1970s. In 1974, the Signal Hill Redevelopment Agency was formed, and the City focused on economic development and diversification. Today, Signal Hill is a well-balanced, financially sound, and economically diverse community.
The City operates under the Council-Manager form of municipal government. The City Council is comprised of five members elected at large, on a staggered basis, for a term of four years. Policy-making and legislative authority are vested in the governing City Council, which appoints a Mayor on an annual basis in December from among the members of the City Council. The City Council appoints the City Manager, who is responsible for the day-to-day administration of City business and the coordination of all departments of the City. The City budgets for an authorized staff of approximately 124 full-time equivalent positions.
The City provides a full range of municipal services, including police and public safety, street maintenance, park maintenance, public improvements, planning and zoning, water utilities, recreational activities, community programming, and library services. The County of Los Angeles provides fire protection and public health services, the Sanitation District of Los Angeles County maintains and upgrades the sewer system, and the City of Long Beach provides animal care services and bus transportation throughout the City.
The AFR includes the financial activities of the City of Signal Hill, the primary government, and its component units, which are the Signal Hill Housing Authority and the Signal Hill Public Financing Authority. The operations of these units are included within the Basic Financial Statements of the City. (ii)
The Signal Hill Redevelopment Agency (Agency) was established on May 7, 1974, pursuant to the State of California Health and Safety Code, Section 33000, entitled "Community Redevelopment Law." The Agency was formed for the purpose of preparing and carrying out plans for the improvement, rehabilitation, and redevelopment of blighted areas within the City. When the State dissolved all redevelopment agencies in early 2012, the City of Signal Hill opted to become the Successor Agency to the Signal Hill Redevelopment Agency. The Successor Agency is included in the financial statements as a Private Purpose Trust Fund and is not part of the City's government-wide statements. Additional information is found in Note 17 of the Notes to the Basic Financial Statements.
The Signal Hill Housing Authority (Housing Authority) was formed on December 12, 2000, pursuant to provisions of the California Health and Safety Code. The primary purpose of the Housing Authority is to provide suitable, safe, and sanitary housing opportunities for the City's residents. Upon dissolution of the Redevelopment Agency, the housing assets and functions of the dissolved agency were transferred to the Housing Authority. The Housing Authority is included in the financial statements as a separate Special Revenue Fund.
The Signal Hill Public Financing Authority (Public Financing Authority) is a joint powers authority formed under the Joint Exercise of Powers Law of the State of California, Section 6502 of Title 1, Division 7, Chapter 5 of the Government Code of the State of California (the "Joint Exercise of Powers Act") between the City and the Agency on October 15, 1996, for the purpose of establishing a vehicle which may reduce local borrowing costs and promote the greater use of existing and new financial instruments and mechanisms. The Public Financing Authority's Board of Directors is the Signal Hill City Council. Due to the Redevelopment Dissolution Act, the use of the Public Financing Authority to assist in future financings is limited since the former Agency, now Successor Agency, is one of the parties to the joint powers agreement forming the Public Financing Authority. The Dissolution Act contains language concerning the termination of the Successor Agency in the future that could have an impact on any new debt issued by the Public Financing Authority.
To assist in financing and refinancing City capital improvements - to be used in connection with future City financing or refinancing activities - the Signal Hill Municipal Financing Authority (Municipal Financing Authority) was formed between the City and the Agency on August 22, 2017, under the Joint Exercise of Powers Law of the State of California, Section 6502 of Title 1, Division 7, Chapter 5 of the Government Code of the State of California (the "Joint Exercise of Powers Act"). The Municipal Financing Authority's Board of Directors is the Signal Hill City Council.
Local Economy
While the California economy has effectively recovered from the pandemic recession of 2020 with a faster return to normalcy in most business sectors, the current global and local economies continue to face many of the same challenges in the prior year and remain prevalent through today. Inflation continues to top historical norms, rising interest rates continue to put pressure on the housing market, car sales and other certain parts of the economy, the risk of new COVID variants, and the war in Ukraine (ili)
continue to have a global economic effect. A mix of economic forecasts believes that the longer inflation persists and the higher the Federal Reserve increases interest rates in response, the greater the risk to the overall economy.
Inflation has become one of the most challenging obstacles global economies have attempted to overcome. The Fed has taken an aggressive stance in combating inflation by raising interest rates from .25% in March 2022 to 4% in November 2022. The inflation rate met a 40-year high of 9.1% in 2022 but is predicted to taper over the next year, as indicated by softening housing prices, labor markets, consumer demand, and decelerated money supply. Furthermore, these actions have also impacted the housing market, which experienced a continued high growth rate (10%) through early 2022 until the Fall, when the rate tapered to 3%. Many economists are mixed about the relationship of higher mortgage rates and whether home prices will slow through 2023 and continue to watch this closely.
While unemployment remains low, showing signs of resiliency, inflation may ultimately impact GDP growth and consumer spending habits towards basic necessities such as food, accommodations, health care, and transportation and create more uncertainty for the overall economy.
While California's economy remains robust, its outlook is weaker than it was three months ago as a result of the economic weakness both locally and globally. As uncertainty remains, several factors, including the Fed's approach to interest rates, could ultimately drive the economy into a slowdown and increase unemployment. In the Fall 2022 Beaconomics report, Christopher Thornberg noted, 'Inflation may have peaked, but it will not decelerate rapidly-expect price growth and interest rates to remain elevated in the near-term future until the Fed gets serious about quantitative tightening." Also, the State of California recently released its preliminary budget for FY 2023-24, which estimates a budget problem of $24 billion primarily due to anticipated lower revenues not keeping up with rising costs but has refrained from anticipating a full-on recession yet. Overall, much of the economic data appears to suggest a recession is likely to occur; however, it is far from certain, and the exact timing and severity are unknown.
During the Covid-19 pandemic, it was evident that local governments, particularly general fund revenue portfolio (i.e., property tax, sales tax, transient occupancy tax, franchise fees, etc.) and the elasticity of these sources, determined a city's fiscal exposure during the economic shifts that occurred over the past two years. As a "low property" tax city, the City's most significant revenue source for General Fund operating revenues is sales tax. Signal Hill's revenue mix has proven to be resilient, with overall sales tax revenue remaining strong, with a total point of sale revenues nearly the same as the previous year.
The County Pool allocations did experience a slight pullback as online spending for general consumer goods began to flatten with consumers returning to in-store shopping and is expected to have more normalized gains of 4 to 5% moving forward. The City's new transaction and use tax Measure SHR generated 27.7% of the Bradley Burns amount, led by a solid performance from general consumer goods. However, according to City's industry expert, HdL, overall sales trends are forecasted to experience decelerated growth rates.
(iv)
The City's major sales tax industry groups include Business and Industry, Autos and Transportation, General Consumer Goods, and Building and Construction. Two of the City's larger business groups that experienced year-over-year gains include Building and Construction (3%) and General Consumer Goods (6%). The Autos and Transportation sector experienced a year-over-year decrease of 4%, with new car dealers and rental car vendors experiencing modest gains; however, sales of used autos and leasing activity have begun to cool. The Fuel and Service Stations and Restaurants and Hotel sectors experienced strong growth with gains of 46% and 19%, respectively, a reversal of the prior years' declining trend. County Pool Allocations are down 13% as compared to the prior year due to the shift to in-store purchases, with lower gains forecasted for FY 2022-23. The most significant impact to FY 2021-22 sales tax revenue included the first full year of Signal Hill Measure SHR transaction and sales tax revenue with total district tax $1.5 million higher than budgeted. Overall, higher priced goods through periods of consistent demand have led to economic inflation, and the Federal Reserve Board's recent actions to curb inflation are anticipated to put downward pressure on sales of autos, building materials, and financed general consumer goods, resulting in slower growth by year-end and into 2023.
Property taxes account for the next largest revenue source for the General Fund. California median home prices experienced a modest annual growth (.3%) as of October 2022, with Los Angeles experiencing an increase of 2.4%, according to the California Association of Realtors. The housing market home sales have recovered from their record low during the initial months of Covid-19. Signal Hill's home sales and prices continued to increase in 2022; however, with rising interest rates and inflation, there may be a decrease in the volume of home sales moving forward. The City's overall net taxable property value changed by 8.3% and is highly affected by the oil and gas assets within the City. These property value changes are likely related to oil price fluctuations. As the property tax roll is set prior to the commencement of the fiscal year, property tax revenue was conservatively projected for FY 2022-23.
The City's annual obligated costs, such as contract costs, insurance, pension obligations, and unfunded mandates, continue to rise over time and compete against other budget priorities. The largest obligated costs include pensions costs related to the CaPERS Unfunded Accrued Liability (UAL). The UAL mainly fluctuates as a result of investment returns and changes in the discount rate. CaPERS recently announced a loss of 7% for FY 2021-22, which is balanced by FY 2020-21's net return of 21%.
CalPERS' FY 2020-21 above-expected return triggered a risk mitigation review, which lowered the discount rate from 7 to 6.8 percent, effectively erasing part of the gains from the 2021 returns. The recent gain and loss, change in the discount rate, and assumption changes have led to variable funding status' , which directly impact the City's pension costs and overall budget strategies. The City will continue to monitor this closely.
FY 2022-23 Operating Budget
Based upon industry forecasts, historical and current data, and in accordance with the City's tradition of fiscal prudence, the City applied conservative budgeting principles during the budget development process for FY 2022-23. The City's FY 2022-23 Operating Budget focuses on the delivery of quality core municipal services while proactively addressing safety and deferred maintenance and operational (v)
needs with a skilled and talented workforce. In developing the budget for the major general fund revenues, the City relied on an analysis of historical performance and trends, as well as industry, economist, and news reports.
The City's expenditures were developed as a conservative spending plan addressing City Council and community priorities. The City's continued operations at full capacity include the expansion of current community programs, increased public engagement threw committees and other city events, and plans for future development. The budget also reflects the utilization of government relief program funding, special revenues, and grant programs in the City's capital plan and operational expenditures.
While the budget reflects tempered optimism, the current global and local economies continue to face new and ongoing challenges that may lead to reevaluating spending strategies. The City's future economic health will be dependent on maintaining healthy reserves through fiscally conservative budgets and policies, planning for economic development opportunities, and maintaining its strong financial position through prudent, long-range policy decisions and sound fiscal management. The City will continue to monitor key economic indicators, sources of revenue, and spending levels as part of its sound, conservative fiscal approach.
Long Term Financial Planning
The community helped craft the City of Signal Hill Strategic Plan, which sets the priorities for the City.
The Strategic Plan includes six goals with specific objectives: 1) Ensure long-term fiscal stability; 2) Ensure public safety is a high priority; 3) Promote a strong local economic base; 4) Maintain public infrastructure; 5) Enhance the quality of life for residents; and 6) Promote a transparent and open government. The City Council and staff use the Strategic Plan as a tool to continue to improve the quality of life for the residents of Signal Hill.
A city's capacity to effectively deliver basic day-to-day services to its residents and businesses fundamentally affects whether residents can live in a healthy, safe, and fulfilling manner. Local governments are at the forefront in providing these basic services - for example: establishing and governing local laws and codes; providing police service and protection to residents and businesses; assisting in a fire or medical emergency; delivering clean water; providing recreational, social, and learning opportunities for residents; assuring the safety of existing and new buildings located in the city; building and maintaining infrastructure and public buildings; activating emergency operations to provide incident command, if necessary; and maintaining local roads for the orderly movement of people and things. Therefore, how local government is funded, and how well it is funded to be able to carry out this mission, is vital.
To meet these public duties, cities must manage and allocate millions of dollars each year, employ staff, negotiate and manage contracts, build and operate public facilities, among other obligations, and do all this within a setting that must be continually open, transparent, and accessible to the public. (vi)
How local governments decide to use their limited resources leads to a complicated intersection of public policy, community planning, and budgeting. The heart of the matter is, in fact, the ongoing work to balance limited revenues with public demand for costly and often vital services and facilities.
Money for delivering local government services in California is raised largely through an intricate system of taxes and fees - a finance system that is complicated and unique. The system's unique nature is due to many factors of law, history, and culture, including state constitution provisions enacted by voters that prescribe strict limits on how municipalities can raise revenues - and even how they can spend their money. In addition, the State's recurring financial crises have had vast repercussions at the local level, further stressing municipal revenues and services.
On November 3, 2020, the residents of Signal Hill voted in a new three-quarter cent per dollar (0.75%) general transactions and use (sales) tax to take proactive local control of long-term financial planning.
This tax will continue to preserve the high quality of life that the community expects and deserves, supporting the ongoing provision of essential services while securing a reliable, long-term funding stream that is locally controlled, where revenue is not subject to seizure or elimination by the State. The new tax provided approximately $6 million in annual revenues in FY 2021-22 to help fund programs such as streets, pothole and infrastructure repair, clean public areas, 9-1-1 emergency response, and crime prevention.
The unassigned fund balance in the General Fund and the fund balance of the Economic Uncertainties Fund equal 100% of FY 2021-22 General Fund budgeted operating expenditures, which exceeds the policy guidelines of 50% as set by the City Council for budgetary and planning purposes. The City's Financial Policy recommends maintaining a combined General Fund and Economic Uncertainties Fund reserve equivalent to a minimum of six months of operating expenditures. These reserves would be utilized to mitigate the adverse impact of an economic slowdown, a recession, or the loss of a major sales tax provider.
City management believes that the City has positioned itself to weather any unanticipated economic fluctuations through adequate reserve accumulation and continuation of the privatization of City functions such as street sweeping and park maintenance, enhanced and renewed focus on proactive economic development efforts with the completion of the long-range asset management plan, and a continued focus on our human development effort to reshape and retrain our workforce to meet changing demands.
Financial and Internal Controls
The Administrative Services Officer/Director of Finance is directly responsible for the City's financial administration and oversees the budget, purchasing, management information systems, risk management, and fiscal operations. Fiscal operations include general accounting, financial reporting, treasury and investment functions, business permits, capital improvement project fiscal administration, payroll, accounts payable, accounts receivable, and water utility billing. (vii)
The Finance Department is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting and financial reporting data are compiled and available to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States.
The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met and that the financial statements are free of any material misstatements. The concept of reasonable assurance recognizes: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
Management believes that the City's current internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
Single Audit
The City is legally required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Uniform Guidance, Audits of State and Local Governments, if total federal grant expenditures exceed $750,000 in a single year.
Throughout the course of FY 2021-22, the City expended federal funds in excess of the $750,000 threshold, subjecting the City to Single Audit requirements. The principal federal funds expensed in FY 2021-22 encompassed Community Development Block Grant (CDBG), Active Transportation Program (ATP), and American Rescue Plan Act (ARPA). The Single Audit will commence at the completion of the ACFR.
Budgetary Controls
The Council is required to adopt a budget by no later than the close of the fiscal year. This annual budget serves as the foundation for the City's financial planning and control. The budget is prepared by fund, function (e.g., Public Safety), and department (e.g., Police). The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual adopted budget approved by the Council. The budget policy of the City requires that: (1) a balanced budget be prepared where resources equal appropriations for all funds in conformance with State constitutional limits; (2) adoption of the budget by Council resolution to take place prior to the beginning of the fiscal year in which it is to take effect; (3) the level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) be established at the program level; (4) adjustment to the adopted budget be made only with the proper approvals; and (5) encumbrances of appropriations as a budgetary control technique be utilized. Activities of the General Fund, Special Revenue Funds, and Capital Projects Fund are included in the annual approved budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. (Vili)
Spending Limitation
Management foresees no problem for several years in complying with the spending limitation under the Gann Initiative passed by the California voters in 1979, which created Article XIIIB of the State Constitution. The City's independent auditors have attested to the accuracy of the computation of the spending limitations for the current period, which indicated that the City's tax proceeds are substantially under the established Gann Limit and are not expected to reach that limit in the foreseeable future.
Independent Audit
The City's Municipal Code requires an annual audit by independent certified public accountants. The accounting firm of CLA CliftonLarsonAllen LLP, Certified Public Accountants, was selected to audit the City's accounting records. The auditor's report on the basic financial statements, combined and individual fund statements, and schedules is included in the financial section of this report.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Signal Hill for its ACFR for the fiscal year ended June 30, 2021. This was the 26" consecutive year that the City of Signal Hill achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program's requirements.
The preparation of this annual comprehensive financial report was made possible by the staff of the Finance Department, the City Manager's Office, and the expertise and assistance of the City's auditors, CLA CliftonLarsonAllen LLP, Certified Public Accountants. Each member of this team has our sincere appreciation. We also extend our thanks and appreciation to the Signal Hill City Council members for their encouragement and support in conducting the City's financial operations in a responsible manner.
Respectfully submitted,
pe ofe-
Joe Hoefgen Sharon del Rosario
Interim City Manager Administrative Services Officer/
Finance Director
(ix)
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Signal Hill
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Chustopher P. Moviel
Executive Director/CEO
(x)
ELECTED OFFICIALS
Keir Jones Tina L. Hansen
Mayor Vice Mayor
Robert D. Copeland Edward H. J. Wilson Lori Y. Woods
Council Member Council Member Council Member
David Hopper Carmen Brooks
City Treasurer City Clerk
EXECUTIVE MANAGEMENT
Interim City Manager Joe Hoefgen
Deputy City Manager Scott Charney
City Attorney Matthew Richardson
Finance Director Sharon del Rosario
Community Development Director Colleen Doan
Community Services Director Yvette Aguilar
Interim Chief of Police Carl Charles
Public Works Director Thomas Bekele
(xi)
CITY OF SIGNAL HILL
ORGANIZATIONAL CHART
CITIZENS OF SIGNAL HILL
LEGISLATIVE LEGISLATIVE
CITY TREASURER CITY COUNCIL
CITY CLERK
ADMINISTRATION
COMMISSIONS
EXECUTIVE ADMINISTRATION PLANNING
COMMUNICATIONS AND PUBLIC RELATIONS PARKS & RECREATION
PROGRAM ADMINISTRATION CIVIL SERVICE
PERSONNEL
SUCCESSOR AGENCY
HOUSING AUTHORITY
ECONOMIC DEVELOPMENT
PUBLIC WORKS COMMUNITY DEVELOPMENT COMMUNITY SERVICES
ENGINEERING LANNING LIBRARY PROGRAMS / SERVICES
BUILDING MAINTENANCE VEIGHBORHOOD ENHANCEMEN COMMUNITY SERVICES
ENVIRONMENTAL PROGRAMS BU FIND SERIEST RECREATION
GROUNDS MAINTENANCE PARK DEVELOPMENT
FLEET OPERATIONS CDBG
WATER ENTERPRISE TRANSPORTATION SERVICES
STREET AND GRAFFITI MAINTENANCE ANIMAL CONTROL
POLICE FINANCE & ADMINISTRATIVE SERVICES
COMMUNITY OUTREACH NON DEPARTMENTAL
PATROL SERVICES INFORMATION TECHNOLOGY
INVESTIGATIVE SERVICES RISK MANAGEMENT
POLICE SUPPORT SERVICES FINANCE OPERATIONS / BUDGET
POLICE COMMUNICATIONS / JAIL WATER BILLING ADMINISTRATION
POLICE RECORDS BUSINESS LICENSE / CUSTOMER SERVICE
EMERGENCY / DISASTER SERVICES
(xii)
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FINANCIAL SECTION
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CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
Members of the City Council
City of Signal Hill
Signal Hill, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Signal Hill, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Signal Hill, California, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
Change in Accounting Principle
As described in Note 1D to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, Statement of Governmental Accounting Standards Board (GASB Statement) No. 87, Leases. Our opinions are not modified with respect to this matter.
Restatement
As described in Note 18 to the financial statements, The City restated the beginning net position of the Successor Agency to the Signal Hill Redevelopment Agency Private-Purpose Trust Fund. Our opinions are not modified with respect to this matter.
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. (1)
To the Honorable Mayor and
Members of the City Council
City of Signal Hill
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
(2)
To the Honorable Mayor and
Members of the City Council
City of Signal Hill
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison schedules, the schedules of changes in the net pension liability and related ratios of the defined benefit plans, the schedules of contributions of the defined benefit plans, the schedule of changes in net OPE liability and related ratios and the schedule of contributions of the OPEB plan be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining financial statements and individual fund budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (3)
To the Honorable Mayor and
Members of the City Council
City of Signal Hill
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 18, 2023, on our consideration of the City's internal control over financial reporting and on ur tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
lifter arson Men L
CliftonLarsonAllen LLP
Irvine, California
January 18, 2023
(4)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
As management of the City of Signal Hill (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2022 (FY 2021-22). We encourage readers to consider the information presented here in conjunction with additional information furnished in the letter of transmittal and the City's basic financial statements.
FINANCIAL HIGHLIGHTS
The comparisons provided in this discussion and analysis are between FY 2020-21 and FY 2021-22.
All increases and decreases are expressed relative to FY 2020-21 amounts. Financial highlights for FY 2021-22 are summarized below. Details related to these highlights are found in the remaining sections of this analysis.
Citywide
• The City's total net position, the amount by which total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources, equaled $135.2 million in FY 2020-21 and equals $145.9 million in FY 2021-22.
• Of this amount, $26.6 million is unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. The remaining net position is classified as net investment in capital assets of $102.2 million and restricted of $17.1 million. • The City's total net position increased by $10.7 million over FY 2020-21 and is largely attributed to revenues exceeding expenditures and net transfers. The remainder of this report will provide a more detailed analysis of the City's net position and operating activities that contributed to this increase.
• On November 3, 2020, residents approved Signal Hill Measure R (SHR), a new three-quarter cent per dollar general transaction and use (sales) tax. The California Department of Tax and Fee Administration (CDTFA) began collecting the new tax on April 1, 2021 and the first full year results are reflected in this report.
• The net position presentation has been updated to reflect the implementation of Governmental Accounting Standards Board (GASB) Statement No. 87, effective FY 2021- 22, resulting in new asset and liability categories. The objective of the new statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.
• In 2022, due to high inflation, the Federal Reserve increased interest rates at the fastest pace seen in several decades. As a result and reported in the monthly investment activity report, the market value of the City's investment portfolio was 98.6 percent of the book value.
Interest rates are further expected to increase, causing market values to continue to fluctuate.
The City's policy is to buy and hold investments to maturity to minimize investment risk in a fluctuating market and to ensure the preservation of capital in the overall investment portfolio. An unrealized loss was recorded as of year-end to adjust market fluctuations and is referred to throughout the MD&A. Additional information and discussion of these can be found in Notes IF and 2 of the City's Notes to the Basic Financial Statements. (5)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Fund Level
• As of June 30, 2022, governmental funds report a combined fund balance of $71.9 million, an increase of $6.5 million from the prior year. Of this amount, $21.3 million is available for spending at the City's discretion (unassigned fund balance). • As of June 30, 2022, the General Fund reports an ending fund balance of $56.6 million. Of this amount, $23.1 million is available for spending at the City's discretion (unassigned fund balance). Cash and investments of the General Fund total $43.4 million, which represents
76.6% of the General Fund's total $56.6 million fund balance. • As of June 30, 2022, the City's Water Enterprise fund reports an ending net position of $21.7 million, an increase of $1.1 million from the prior year. The net position is classified as net investment in capital assets of $23.7 million and unrestricted net position of a $2.0 million deficit. The City anticipates the additional revenue collected from Proposition 218 water rate increases in 2020, currently, in year three of five, coupled with the completion of the new Well 10 project, the unrestricted net position of the Water Enterprise fund will gradually increase to a positive position.
• As of June 30, 2022, the City's Internal Service fund reports an ending net position of $2.7 million. Of this amount, $1.7 million is unrestricted and is available for spending at the City's discretion of which $1.5 million provides a reserve balance for unforeseen events or emergencies.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are required supplementary information and are intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Other required supplementary information immediately follows the notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements and required supplementary information.
Government-wide Financial Statements. The government-wide financial statements are designed to give the reader a picture of the City from the economic resources measurement focus using the accrual basis of accounting. This broad overview is similar to the financial reporting used in private- sector business. The government-wide financial statements have separate columns for governmental activities and business-type activities. Governmental activities of the City include general government (legislative, finance, administration, and personnel), community services, police, community development, and public works. The City's business-type activity consists of a water utility. Governmental activities are primarily supported by taxes, charges for services, and grants while business-type activities are primarily self-supporting through user fees and charges. The government-wide financial statements can be found beginning on page 21 of this report. (6)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
The Statement of Net Position presents information on all City assets (including capital assets), liabilities (including long-term liabilities), and deferred inflows and outflows of resources. The amount by which assets and deferred outflows of resources exceed liabilities and deferred inflows of resources is reported as net position. Over time, trends in increases or decreases in net position may be one indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information designed to show how the City's net position changed during the year. This statement distinguishes revenue generated by specific functions from revenue provided by taxes and other sources not related to a specific function. The revenue generated by specific functions (charges for services, grants and contributions) is compared to the expenses for those functions to show how much each function either supports itself or relies on taxes and other general funding sources for support. All activity on this statement is reported on the accrual basis of accounting, which requires that revenues are reported when earned and expenses are reported when incurred, regardless of when cash is received or disbursed.
Fund Financial Statements. A fund is a fiscal and accounting entity with a self-balancing set of accounts used to account for specific activities. Funds are often set up in accordance with special regulations, restrictions, or limitations. The City uses fund accounting to ensure and show compliance with finance-related legal requirements. The City's funds are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for the governmental activities reported in the government-wide financial statements. Most of the City's basic services are included in governmental funds. The basis of accounting is different between the governmental fund statements and the government-wide financial statements. The governmental fund statements focus on near-term revenues/financial resources and expenditures while the government-wide financial statements include both near-term and long-term revenues/financial resources and expenses.
Fund balance is categorized into a hierarchy of five classifications: non-spendable, restricted, committed, assigned, and unassigned. These categories facilitate analysis and understanding of the City's commitment of financial resources.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Housing Authority Special Revenue Fund, the Capital Grants Special Revenue Fund, and the Capital Improvement Capital Projects Fund, all of which are considered to be major funds. Data from all other governmental funds is combined into a single, aggregated presentation. Individual fund data for these non-major governmental funds is provided as supplementary information elsewhere in this report. (7)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
The basic governmental fund financial statements can be found beginning on page 24.
Proprietary funds. Proprietary funds consist of both enterprise and internal service funds. When the City charges customers for a service provided - whether to outside customers or to other units of the City - these services are reported in proprietary funds. There is a direct relationship between the fees paid and the services received. Like the government-wide financial statements, the proprietary funds provide both long-term and short-term financial information utilizing the economic resources measurement focus.
The City's enterprise fund is the same as the business-type activities reported in the government- wide statements, but the fund statements provide more detail and additional information, such as cash flows. The City has one enterprise fund for water utilities.
The City's internal service fund is used to report activities that primarily provide supplies and services for the City's other programs and activities. The City uses one internal service fund to account for vehicle maintenance and repair services.
The proprietary fund financial statements can be found beginning on page 31 of this report.
Fiduciary funds. Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. Fiduciary funds are not included in the government-wide financial statements because their assets are not available to support the City's activities.
The City's Fiduciary funds consist of a Private-Purpose Trust Fund and a Pension Trust Fund. The City is the Successor Agency to the former Redevelopment Agency; all of its assets, liabilities, and activities are recorded in the Private Purpose Trust Fund. The Successor Agency is a separate operating entity from the City. The Pension Trust Fund is used to account for activities related to the City's other postemployment benefit (OPEB) plan and is an irrevocable trust fund The fiduciary fund financial statements can be found beginning on page 35 of this report.
Notes to the basic financial statements. The notes to the basic financial statements provide additional information that is important to a full understanding of the data in the government-wide and fund financial statements. The notes to the basic financial statements can be found beginning on page 39 of this report.
Supplementary Information - In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information. Required supplementary information is found immediately following the notes to the basic financial statements.
Optional supplementary information is presented as combined and individual statements for other governmental and agency funds. This optional supplementary information can be found immediately following the required supplementary information.
(8)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
GOVERNMENT-WIDE FINANCIAL ANALYSIS
A summary of the government-wide Statement of Net Position as of June 30, 2022, and June 30, 2021, is as follows:
Condensed Statement of Net Position
Governmental Activities Business-type Activities Totals 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Assets:
Current and other assets 111,041,105 $ 78,886,059 2,548,338 $ 2,403,168 113,589,443 $ 81,289,227 Capital assets, net 101,143,635 85,370,200 27,800,854 25,895,699 128,944,489 111,265,899 Total Assets 212,184,740 164,256,259 330349,192 28,298,867 242,533,932 192.555,126 Deferred outflows of resources:
Deferred amount on refunding 58,502 75,836 58,502 75,836 Deferred amounts from pension 5,760,306 5,405,817 515,675 539,672 6,275,981 5,945,489 Deferred amount from OPEB 2,479,566 2,583,547 268,789 280,061 2,748,355 2,863,608 Total Deferred Outflows 8,239,872 7,989,364 842,966 895,569 9,082,838 8,884,933 Liabilities:
Current liabilities 7,479,021 8,137,546 1,182,123 1,397,539 8,661,144 9,535,085 Long-term liabilities 49,396,341 47,839,302 6.479,282 7,017,840 55,875,623 54,857,142 Total Liabilities 56,875,362 55,976,848 7,661,405 8,415,379 64,536,767 64.392,227 Deferred inflows of resources:
Deferred amounts from pension 13,657,865 983,989 1,668,323 105,896 15,326,188 1,089,885 Deferred amount from OPE 1,570,027 671,212 170,193 72,760 1,740,220 743,972 Deferred amounts from Leases 24,081,733 24,081,733
Total Deferred Inflows 39,309,625 1,655,201 1,838,516 178,656 41,148,141 1,833,857 Net position:
Net investment in capital assets 78,459,175 76,772,294 23,726,827 22,683,944 102,186,002 99,456,238 Restricted 17,131,724 17,426,787 17,131,724 117,426,787 Unrestricted 28,648,726 (2.034590) 12083543) 26,614,136 18,330,950 20,414,493
Total Net Position 124,239,625 $ 114,613,574 21,692,237 20,600,401 145,931,862 135,213,975 Over time, net position may serve as a useful indicator of a city's financial position. At June 30, 2022, net position was $145.9 million, an increase of $10.7 million over the net position of $135.2 million at June 30, 2021.
The largest portion of the City's net position ($102.2 million or 70.0%) is its investment in capital assets (e.g., land, buildings, infrastructure, and equipment, etc.), net of related debt. The City uses capital assets to provide services to citizens; consequently, these assets are not available for future spending. This category of net position increased mainly from the construction of ongoing, or nearly completed projects such as Heritage Point Park project, Well 10 construction project, and Spring Street overlay.
The City's restricted net position totals $17.1 million (11.8% of total net position). Restricted net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of $26.6 million (18.2%) represents unrestricted net position; this category of net position may be used to meet the City's ongoing obligations to citizens and creditors.
Total net position increased by $10.7 million from an excess of revenues over expenses. This net increase was reflected by an increase of $8.1 and $2.9 million in unrestricted net position and net investment in capital assets, respectively, and offset by a decrease in restricted net position of $0.3 million. The excess of revenues over expenses will be analyzed in conjunction with the Statement of Activities.
(9)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
With the implementation of GASB 87, the City was required to report long-term leases in the financial statements.
of the City's Notes to the Basic Financial Statements.
Following is a summary of the government-wide Statement of Activities which illustrates the City's overal sand milian reveas. A ner usingsuing sign parama neen even as tapers. follows the table.
Condensed Statement of Activities
Governmental Activities Business-type Activities Totals 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Revenues:
Program revenues:
Charges for services 2,209,181 1,903,065 6,208,013 5,548,069 8,417,194 7,451,134 Grants and contributions:
Operating 2,253,943 1,819,450 2,253,943 1,819,450
Capital 2,828,139 937,517 : : 2,828,139 937,517
General revenues:
Property taxes 2,618,545 2,801,763 2,618,545 2,801,763
Sales and use taxes 24,786,099 20,267,843 : 24,786,099 20,267,843 Other taxes 2,048,969 1,901,629 2,048,969 1,901,629
Investment Income 706,816 1,346,195 (76,572) 2,546 630,244 1,348,741 Unrestricted grants and
contributions 553.591 435,019 553,591 435,019
Total revenues 38,005,283 31,412,481 6,131,441 5,550,615 44,136,724 36,963.096 Expenses:
General goverment 7,092,705 6,045,259 7,092,705 6,045,259 Community services 2,619,137 1,996,332 2,619,137 1,996,332 Police 11,054,042 11,009,108 • . 11,054,042 11,009,108
Community development 1,359,366 1,269,754 1,359,366 1,269,754 Public works 4,632,836 4,858,616 4,632,836 4,858,616
Interest Expense 492,113 216,842 492,113 216,842
Unallocated infrastructure
depreciation 421,707 393,841 421,707 393,841
Water 5,746931 5262993 5,746,931 5,262,993
Total Expenses 27,671,906 25,789,752 5.746,931 5,262,993 33,418,837 31,052,745 Excess of Revenues over Expenses 10.333,377 5,622,729 384.510 287.622 10,717,887 5.910,351 Transfers (707,326) 707,326
Change in net position 9,626,051 5.622,729 1,091,836 287,622 10,717,887 5.910,351 Net position - beginning 114,613,574 108,990,845 20,600,401 20,312,779 135,213,975 129,303,624 Restatement of net position
Net position - beginning, restated 114,613,574 108,990,845 20,600,401 20,312,779 135,213,975 129303624 - ending 124,239,625 S 114,613,574 21,692,237 $ 20,600,401 $ 145.931,862 S 135,213,975 Government-wide revenues increased by $7.2 million (19) to $44.1 million. The majority of this ncrease resulted from an increase of $4.5 million in sales and use taxes, an increase of $2.3 millio n operating and capital grants, and an increase of $1.0 million in charges for services. Sales and us tax performed better than anticipated and can be partially attributed to a full year's collection of Measure SHR.
(10)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Operating and capital grants increased by $2.3 million, mainly from Rivers and Mountains Conservatory Grant (RMC) and Active Transportation Program (ATP) to fund the Heritage Point Park and Spring Street overlay construction projects, respectively. Charges for services increased primarily due to the annual water rate increase in the Enterprise Fund. The remaining changes include all other governmental activities accounting for a net $0.6 million decrease, most of which is attributed to the $0.7 million decrease from the unrealized loss related to fair market value adjustment in investment income.
The most significant portion of the City's revenue came from sales and use taxes, which accounted for 56.2% of total revenue. Charges for services accounted for 19.1% of total revenue. Additionally,
12.8% was received from grants and contributions, 5.9% from property taxes, 4.6% from other taxes, and the remaining 1.4% was from investment income.
Government-wide expenses of all City programs and services increased by a net $2.4 million (7.6%) to $33.4 million for the fiscal year ended June 30, 2022. Governmental Activities increased by $1.9 million while the Business Type Activities increased by $0.5 million. Expenses include adjustments for depreciation, long-term debt, and pension costs. Based on the latest actuarial valuations, the pension expense modestly increased by $0.02 million while the net OPEB expense decreased by $0.2 million. The lower-than-average increase in pension expense is largely due to CalPERS' 21% return on investment, which is reflected in FY 2021-22. The net increase in Government-wide expenses is spread across the City's programs with increases in General Government by $1.0 million, Community Services by $0.6 million, Water by $0.5 million, Community Development by $0.09 million, and Police by $0.04 million, while Public Works decreased by $0.2 million. Interest Expense is now presented on a separate line item at $0.5 million and is attributed to long-term debt and capital leases.
Police accounted for 33% of the total costs, General Government for 21%, Water for 17%, and Public Works for 14%, with Community Services (8%), Community Development (4%), Interest Expense (2%) and Unallocated Infrastructure Depreciation (1%) accounting for the remaining expenses.
The following two charts show the source and use of funds for Governmental Activities:
Governmental activities contributed $9.6 million to the increase in net position resulting from revenues exceeding expenses. Governmental activities comprise the majority of the government- wide data, and explanations for changes in government-wide and governmental activities are often similar.
Revenues of governmental activities report a net increase over the prior year of $6.6 million (21%), to $38.0 million. Approximately $4.5 million of this increase is related to actual sales and use tax revenues higher than estimated. Grants and contributions increased by $2.4 million. Other revenues increased by $0.5 million, while interest revenue and property taxes decreased by $0.6 and $0.2 million, respectively.
Expenses of governmental activities increased by a net $1.9 million (7.3%). Expenses include adjustments for depreciation, long-term debt, and pension costs. The net increase is spread across the City's programs with General Government increasing by $1.04 million, Community Services increasing by $0.62 million, Community Development increasing by $0.09 million, Police increasing by $0.05 million. interest expense increasing by $0.3 million. unallocated depreciation increasing by $0.03 million, and Public Works decreasing by $0.23 million. (11)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Revenues by Source - Governmental Activities
Fiscal Year 2021-22
Capital Cirants Operating Grants Other
7% Reveme
Insestment Income 2%
2%
Charges for Services
6%
Otber Taxes
5%
Property Taxes
7%
Sales & Use Tax
65%
Expenses - Governmental Activities
Fiscal Year 2021-22
General Goremment
26% Interest Expense
2%
Unallocated
Community Depreciation
Development 1%
5%
Public Works
17%
Community Services
Police 9%
40%
(12)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
The following two charts show the source and use of funds for Business-type Activities:
Business-type activities consist solely of the Water Utilities Enterprise Fund. The financial goal of the City's business-type activities is to operate on a more or less "break-even" basis without making significant profit or needing general tax subsidies. Total net position at the end of the year was $21.7 million as compared to $20.6 million at the end of the prior year. This represents an increase in net position of $1.1 million or 5.3%. The increase can largely be attributed to the water sales and the use of Water Development Impact fees to fund the new Well 10 water project.
Revenues of $6.1 million consist of charges for services which is netted by the GASB 31 recording of the unrealized investment loss. This is an increase of $0.6 million or 10.5% over the prior year's total revenue of $5.6 million. The increase is due to increased water rates offset by a marginal decrease in investment income as compared to the prior year. Expenses totaled $5.8 million in the current year, an increase of $0.5 million over the prior year's expenses of $5.3 million. The majority of the increase is attributed to higher water supply costs mostly due to higher water prices, and insurance costs that were offset by an adjustment in pension benefits. For more details relating to the Water Utilities Enterprise Fund activities and water management plan please see the City's Website.
Revenues by Source - Business-type Activities
Fiscal Year 2021-22
Investment
Income
0%
Charges for Serves
100%
(13)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Expenses - Business-type Activities
Fiscal Year 2021-22
Depreciation
Materials & Repairs 15
3%
Utilities
3%
Interest Exp
1%
Supplies
34%
Personnel
28%
Contractual
4%
FUND FINANCIAL ANALYSIS
The City's major governmental funds for FY 2021-22 were the General Fund, the Housing Authority Special Revenue Fund, the Capital Grants Special Revenue Fund, and the Capital Improvement Capital Projects Fund.
General Fund
The General Fund's fund balance increased by $8.6 million in FY 2021-22. This increase resulted from revenues and net transfers totaling $32.5 and $0.9 million, respectively, exceeding expenditures of $24.9 million.
General fund revenues increased by a net of $4.4 million compared to FY 2020-21. This net increase is explained by a $4.5 million increase in sales and use tax revenues and a $0.3 million increase in charges for service. Signal Hill Measure R (SHR) also came in higher than budgeted by $1.5 million.
Investment income decreased by $0.5 million, primarily due to the unrealized investment loss due to the fair market value adjustment reflective of the current financial market conditions affected by the rapid increase in raising interest rates by the Federal Reserve. Property taxes also decreased as part of the decrease of residual funds from the successor agency for the Signal Hill Redevelopment Agency.
The General Fund's operating expenditures increased by $2.8 million. This increase is mainly due to bringing the City to full capacity from employee furlough, hiring freezes, and deferring capital outlay implemented in FY 2020-21 in anticipation of unknown Covid-19 impacts. Obligated costs such as insurance costs, utility services, and contractual services also experienced increases. (14)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Housing Authority Special Revenue Fund
The Housing Authority fund balance increased by $0.17 million to $6.0 million as compared to the prior year's fund balance of $5.9 million. The fund's activity consists of interest income and professional services for assistance in administering the City's housing program. Interest income decreased due to the unrealized investment loss related to the fair market value adjustment. The housing authority also received a transfer of $.24 million related to the Successor Agency annual loan payment which allocates 20% of City/Agency loan to the Low/Moderate Income Housing Authority Fund (LMIHAF). The Fund balance is restricted for housing purposes.
Capital Grants Special Revenue Fund
The Capital Grants Special Revenue Fund is used to account for grants received from other governmental agencies for capital improvements. The majority of funds received are transferred to the Capital Improvements Capital Projects Fund for capital project funding. The negative fund balance represents future receivables that are generally withheld from Grant funds as retentions and are considered unavailable revenue but are anticipated to be received upon the close out of the capital project. The largest grant revenues received in FY 2021-22 were from RMC and ATP, both used for capital construction projects.
Capital Improvement Capital Projects Fund
Capital expenditures within the Capital Improvement Capital Projects Fund totaled $3.4 million for the fiscal year. The major projects worked on in FY 2021-22 included Heritage Point Park construction, Signal Hill Park improvements, Spring Street overlay and various other street improvement construction projects, and sidewalk repair. The restricted ending fund balance of $0.4 million reflects an advance received for a specified construction project, all other project costs were fully funded as budgeted.
General Fund Budgetary Highlights
The General Fund often receives the most public attention since it is where local tax revenues are accounted for and where the most visible and recognizable municipal services (such as police, public works and community services) are funded.
In preparing its budget, the City attempts to estimate revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner in alignment with the City Council's expectations. As a result, the City adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and the availability of additional revenue. During the course of the year, the City Council amended the originally adopted budget by $1.2 million. The main reasons for the increases include: to fund the purchase of real property 1924 E 21* St for Signal Hill Park expansion, additional housing element costs, fund infrastructure grant consultants, and adjustments to personnel, with partial funding from special revenue and reserve funds.
(15)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Total General Fund revenues of $32.5 million were $5.3 million higher than the budgeted amount of $27.3 million. Due to conservative budgeting of revenues, all revenue categories exceeded the budget except for Fines and Forfeitures and Investment Income revenue.
Total General Fund expenditures were projected at $28.9 million. The FY 2021-22 actual expenditures were below the total budgeted amount by $4.0 million as all departments ended the year with expenditures below budget. The General fund expenditures increased from the prior year and still came in lower than budget, which is mostly due to employee position vacancies within the Police, Administration, and Public Works departments. Administration and the Public Works department also experienced lower use of planned contract services resulting in lower than budgeted expenditures. The Information Technology division also implemented a phased-in approach of the City's infrastructure refresh project allocating the original budget into future years.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets for its governmental and business-type activities as of June 30, 2022, totaled $115.6 million, net of depreciation. These assets include buildings, infrastructure, land, machinery and equipment, park facilities, vehicles, water lines, and construction in progress. FY 2021-22 had a net increase in capital assets of $4.3 million. The increase was mainly due to the additional and ongoing projects increasing construction in progress. Additionally, Capital Assets was updated for the implementation of GASB Statement 87, Leases, for the Right-To-Use Lease Assets of $13.3 million. For additional information see Notes 1 and 3 of the Notes to Basic Financial Statements.
Capital Assets
Governmental Activities Business-type Activities Totals 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Land 35,499,457 34,558,469 4,427,416 4,427,416 39,926,873 $ 38,985,885 Water rights 274,313 304,693 274,313 304,693
Construction in progress 3,997,493 1,016,144 3,652,825 926,823 7,650,318 1,942,967 Buildings & equipment 36,729,140 37,808,251 19,446,300 20,236,767 56,175,440 58,045,018 Infrastructure 11,565,629 11,987,336 11,565,629 11,987,336 Right-to-Use Lease Assets 13,351,916 13,351,916
Total assets $ 101,143,635 85,370,200 27,800,854 25,895,699 128,944,489 $ 111,265,899 (16)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
Debt Administration
Following is a summary of the City's long-term liabilities:
Long-Term Liabilities
Governmental Activities Business-type Activities Totals 2021-22 2020 - 21 2021-22 2020-21 2021-22 2020 - 21
Water revenue bonds $ 2,250,686 S 2,777,741 2,250,686 $ 2,777,741 Leave revenue bonds 8.500.063 8,447,014
8,447,014 8,590,063
Vater Replenishment District Loa : 1,500,000 1,500,000 2242746 dvance from general fun 2,115,370 2,242,746 2,115,370
Leases payable 13.535.982 13,535,982
Net pension liability 17,743.002 28,704,473 1,720,555 3,116,741 19,463,557 31,821,214 Net OPEB liability 8,712.034 9,670,216 944,399 1,048,268 9,656,433 10,718,484 Compensated absences 958.309 874,550 63,642 75,090 1,021,951 949,640 Total long-term liabilities 49,396,341 47,839,302 8,594,652 9,260,586 57,990,993 $ 57,099,888 The City has two bond issues outstanding at fiscal year-end. The water revenue bonds are part of the City's business-type activities and the outstanding bond liability is $2.3 million at year-end. The lease revenue bonds are part of the City's governmental activities and the outstanding bond liability is $8.4 million at year-end. The City's Water Enterprise, included in Business-type Activities, accepted a zero-interest, $1.5 million loan from the Water Replenishment District to partially fund the construction of the new Well No 10. Additional information on the City's long-term obligations can be found in the following Notes to Basic Financial Statements:
• Note 1L: Employee compensated absences
• Note 6: Long-term liabilities
• Note 7: Interfund receivables and payables
• Note 9: Net pension liability
• Note 10: Net OPEB liability
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Local and state economies experienced continual growth throughout FY 2021-22, with tapering in the latter months due to prolonged historically high inflation and the increased interest rates by the Federal Reserve. Cities continue to be challenged in forecasting the economy, contemplating an extreme spectrum of possibilities, and preparing their following budgets in the midst of a great deal of uncertainty. The City has been fortunate in its specific mix of business, which has been proven to be resilient in response to volatile economic changes. The recent passage of Signal Hill's Measure R (SHR), transaction and use tax has resulted in higher sales tax than expected also contributing to a strong revenue base and financial stability. (17)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
In developing the FY 2022-23 budget, staff utilized prior year results, current data, and industry forecasts while following the City's tradition of fiscal prudence. To deliver a balanced budget for FY operating budget reflects General Fund estimated revenues and transfers-in totaling $32.6 million, an increase of $4.7 million to the adopted FY 2021-22 budgeted revenues. The increase can mainly be attributed to an increase in sales and use tax. FY 2021-22 marked the first year the City received a full year of the resident approved Signal Hill Measure R (SHR) tax, a new three-quarter cent per dollar general transaction and use (sales) tax. The tax generated a higher revenue than initially anticipated, and the data was used to calibrate FY 2022-23 budget.
The City's expenditures were developed as a conservative spending plan addressing City Council and community priorities while focusing on continuing operations at full capacity, addressing deferred maintenance and operational needs, and delivering quality core municipal services with a skilled and talented workforce. The FY 2022-23 operating budget reflects General Fund appropriated expenditures and net transfers-out totaling $32.6 million, an increase of $4.7 million to the adopted FY 2021-22 budget. The increase in expenditures is mainly due to $2.1 million for a public safety communication system replacement with the remaining increase mostly due to increasing personnel enhancements and related benefits and rising obligated costs. The City always attempts to maximize grants and awarded funding from federal, state, and local sources such as the utilization of the American Rescue Plan Act (ARPA) federal funds of $2.5 million to address water utility infrastructure improvements.
If the economy stabilizes, with Measure SHR and the City's existing revenue base, the City is poised to continue to fund community priorities, including maintaining local streets and fixing potholes; maintaining sidewalks, street trees, storm drains, parks and recreation facilities, and other infrastructure; preparing for natural disasters and public health emergencies; cleaning and maintaining public areas and removing graffiti; maintaining 9-1-1 emergency response times; providing financial assistance to residents and local businesses during natural disasters and public health emergencies; addressing homelessness; expanding public engagement and providing crime prevention and investigation services.
The economic impact of the previous two years has placed tremendous fiscal pressure on local governments but has also exposed the restrictive revenue options available to local governments and highlighted the importance of ongoing revenue diversification. Local governments, including Signal Hill, will be challenged to continue to seek diversification opportunities to address future economic storms. The City will seek to focus on strengthening existing revenue streams while identifying and developing new opportunities.
(18)
CITY OF SIGNAL HILL
MANAGEMENT'S DISCUSSION AND ANALYSIS
FISCAL YEAR ENDED JUNE 30, 2022
While it appears that the City will continue to be presented with challenges and opportunities in the years ahead resulting from the short- and long-term economic impacts of the coronavirus pandemic, the City's ongoing, prudent fiscal practices which include a consideration of future needs and planning, have enabled the City to achieve and maintain a positive, long-term stable financial condition. The City will continue to build on the accomplishments that have resulted in the fiscal stability of the City and will continue to deliver the services that provide a high quality of life to residents.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Signal Hill's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance at the City of Signal Hill, 2175 Cherry Avenue, Signal Hill, California 90755-3799.
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CITY OF SIGNAL HILL
STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and Investments $ 63,681,629 $ 3,441,366 67,122,995 Receivables
Accounts 488,460 992,793 1,481,253
Accrued Interest 160,023 160,023
Due from Other Governments 6,444,232 6,444,232
Loans 1,685,068 : 1,685,068
Leases 24,603,122 24,603,122
From Successor Agency 10,779,585 10,779,585
Internal Balances 2,021,759 (2,021,759)
Prepaid Items 123,402 123.402
Escrow Deposits 135938 135,938
Land and Improvements Held for Resale, Net 1.04.642 1,040,642 Restricted Assets
Cash and Investments 13,183 13,183
39,496,950 8,080,241 47,577,191
Capital Assets, not Being Depreciated
Capital Assets, Being Depreciated and Amortized,
Net of Accumulated Depreciation and Amortization 61.646,685 19.720.613 81.367,298 Total Assets 212,184,740 30,349,192 242,533,932
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss Amount on Debt Refunding 58,502 58,502
Pension Related 5,760,306 515,675 6,275,981
OPEB Related 2,479,566 268,789 2,748,355
Total Deferred Outflow of Resources 8,239,872 842,966 9,082,838
LIABILITIES
Accounts Payable 1,722,064 775,301 2,497,365
Accrued Liabilities 1,948,772 1,948,772
Accrued Interest Payable 19,700 43,494 63,194
Deposits Payable 850,664 363,328 1,213,992
Unearned Revenue 2,937,821 2,937,821
Noncurrent Liabilities
Due Within One Year 1,348,646 571,821 1,920,467
Due in More Than One Year
Other 21,592,659 3,242,507 24,835,166
Net Pension Liability 17,743,002 1,720,555 19,463,557
Net OPEB Liability 8,712,034 944,399 9,656,433
Total Liabilities 56,875,362 7,661,405 64,536,767
DEFERRED INFLOWS OF RESOURCES
Pension Related 13,657,865 1,668,323 15,326,188
OPEB Related 1,570,027 170,193 1,740,220
Lease Related 24,081,733 24,081,733
Total Deferred Inflow of Resources 39.309.625 1,838,516 41,148,141
NET POSITION
Net Investment in Capital Assets 78,459,175 23,726,827 102,186,002 Restricted for
Capital Improvements 2,874,246 2,874,246
Development Impact 3,115,212 3,115,212
Transportation 4,877,771 4,877,771
Public Protection 203,780 - 203,780
Housing 6,060,715 6,060,715
Unrestricted 28,648,726 (2,034,590) 26,614,136
Total Net Position S 124,239.625 21.692,237 $ 145,931,862 See accompanying Notes to Financial Statements.
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CITY OF SIGNAL HILL
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Program Revenues
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
GOVERNMENTAL ACTIVITIES
General Government $ 7,092,705 $ 78,996 $ 312,871 $
Community Services 2,619,137 134,685 -
Police 11,054,042 178,816 294,087
Community Development 1,359,366 601,578 330,623
Public Works 4,632,836 1,215,106 1,316,362
Unallocated Infrastructure Depreciation 421,707 -
Interest on Long-term Liabilities 492,113
Total Governmental Activities 27,671,906 2209,181 2,253,943 2,828,139
BUSINESS-TYPE ACTIVITIES
Water 5,746,931 6,208,013 =
Total $ 33,418,837 $ 8,417,194 2,253,943 2,828,139
GENERAL REVENUES
Taxes:
Property Tax
Franchise Tax
Oil Production Tax
Transient Occupancy Tax
Motor Vehicle In-Lieu Tax
Public Service Taxes
Intergovernmental - Unrestricted Shared Sales and Use Tax Investment Income (Loss)
Unrestricted Grants and Contributions
Total General Revenues
Transfers
CHANGE IN NET POSITION
Net Position - Beginning of Year
NET POSITION - END OF YEAR
See accompanying Notes to Financial Statements.
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Net (Expense) Revenue and
Changes in Net Position
Governmental Business-type
Activities Activities Total
$ (6,700,838) $ - $ (6,700,838)
(2,484,452) (2,484,452)
(10,581,139) (10,581,139)
(427,165) (427,165)
726,771 726,771
(421,707) (421,707)
(492,113) (492,113)
(20,380,643) (20,380,643)
461,082 461,082
(20,380,643) 461,082 (19,919,561)
2,618,545 2,618,545
975,346 : 975,346
342,097 342,097
330,413 330,413
13,420 13,420
387,693 387,693
24,786,099 24,786,099
706,816 (76,572) 630,244
553,591 553,591
30,714,020 (76,572) 30,637,448
(707,326) 707,326
9.626,051 1,091,836 10,717,887
114,613,574 20,600,401 135,213,975
$ 124,239,625 21,692,237 $ 145,931,862
See accompanying Notes to Financial Statements.
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CITY OF SIGNAL HILL
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
Capital Grants
Housing Authority Special
Special Revenue Revenue
General Fund Fund
ASSETS
Cash and Investments $ 43,362,454 $ 5,389,442 $
Accounts Receivable 487,759
Accrued Interest Receivable 159,423
Due from Other Funds 1,816,898
Due from Other Governments 4,435,010
Receivable Due from Successor Agency 10,779,585 :
Prepaid Items 63,292
Leases Receivable 24,603,122
Loans Receivable 1,679,031
Advances to Other Funds 2,122,274
Land and Improvements Held for Resale, Net 425,001 615,641 Restricted Assets:
Cash and Investments
Total Assets 88,254,818 7,686,206 1,457,726
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts Payable $ 816,198 $ 2,220 $
Accrued Liabilities 1,945,071
Deposits Payable 850,664
Unearned Revenue 28,046
Due to Other Funds 1,457,726
Advances from Other Funds 1,640,690
Total Liabilities 3,639,979 1,642,910 1,457,726
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 28,031,805 = 1,457,726
FUND BALANCES (DEFICITS)
Nonspendable 3,131,956
Restricted 6,043,296 :
Committed 30,348,779
Unassigned 23,102,299 (1,457,726)
Total Fund Balances (Deficits) 56,583,034 6,043,296 (1,457,726) Total Liabilities, Deferred Inflows
of Resources and Fund Balances (Deficits) $ 88,254,818 $ 7,686,206 $ 1,457,726 See accompanying Notes to Financial Statements.
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Capital
Improvement Other Total
Capital Projects Governmental Governmental
Fund Funds Funds
$ 1,249,390 $ 11,781,865 $ 61,783,151
- 487,759
600 160,023
1,816,898
549,404 6,444,232
10,779,585
63,292
24,603,122
6.037 1,685,068
1,633,786 3,756,060
1,040,642
13,183 13,183
1,249,390 13,984,875 $ 112.633.015
$ 849,388 $ 23,801 $ 1,691,607
3,701 1,948,772
850,664
2,909,775 2,937,821
359,172 1,816,898
1,640,690
849,388 3,296,449 10,886,452
320,305 29,809,836
3,131,956
400,002 100671.007 17,114,305
30,348,779
(302,886) 21,341,687
400,002 10,368,121 71,936,727
$ 1,249,390 $ 13,984,875 $ 112,633,015
See accompanying Notes to Financial Statements.
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CITY OF SIGNAL HILL
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE TO THE
STATEMENT OF NET POSITION
JUNE 30, 2022
Fund Balances - Total Governmental Funds 71,936,727
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities (excluding those in the internal service fund) are not current financial resources and therefore are not reported in the funds. Those assets consist of:
Land $ 35,499,457
Construction in Progress 3,939,582
Infrastructure, Net of $18,605,088 Accumulated Depreciation 11,565,629 Structures and Improvements, Net of $11,825,694 Accumulated Depreciation 35,157,232
Vehicles, Equipment and Furniture, Net of $2,496,590 Accumulated Depreciation 588,056
Total Capital Assets Used in Governmental Activities 86,749,956 Right to Use Assets used in governmental activities are not current financial resources and therefore are not reported in the funds. Related long-term lease liabilities are not due and payable in the current period; therefore, they are not reported in the funds. These items consist of:
Right to Use Assets, Net of $399, 116 Accumulated Amortization 13,351,916 Lease Liability (13,535,982)
(184,066)
Certain receivables will be collected after year-end, but are not available soon enough to pay for current-period expenditures, and therefore are offset by unavailable revenues in the governmental funds. 5,728,103 Internal service funds are used by management to charge the costs of rendering motor vehicle and equipment services to City departments.
The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 2,636,403 Deferred outflows and inflows of resources relating to pensions and OPEB are not reported in the governmental funds because they are applicable to future periods:
Deferred Outflow of Resources - Pension 5,737,329
Deferred Outflow of Resources - OPEB 2,446,58€
Deferred Inflow of Resources - Pension (13,583,530)
Deferred Inflow of Resources - OPEB (1,549,144)
(6,948,759)
Long-term liabilities and related accrued interest payable are not due and payable in the current period and, therefore, are not reported in the governmental funds:
Interest Payable (19,700)
Revenue Bonds Payable (8,447,014)
Compensated Absences (949,528)
Net Pension Liability (17,666,340)
Net OPEB Liability (8,596,157)
(35,678,739)
Net Position of Governmental Activities $ 124,239,625
See accompanying Notes to Financial Statements.
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CITY OF SIGNAL HILL
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Capital Grants
Housing Authority Special
Special Revenue Revenue
REVENUES General Fund Fund
Property Taxes $ 2,339,173 $ $
Sales and Use Tax 24,786.099 :
1,769,494
Licenses and Permits 763,306 985,805
Intergovernmental Revenues 98,225 :
1,567,725
144,205
Investment Income (Loss) 562,380 :
(69,374)
Other Revenue 511,927
Total Revenues 32,542,534 (69,374) 985,803
EXPENDITURES
Current
General Government 5,590,968
Community Services 2,018,541 :
Police 10,026,092
Community Development 1,174,159 4,180
Public Works 4,550,378
Capital Outlay 688,987 :
Debt Service
Principal 335,050 : -
Interest 515,545
Total Expenditures 24,899,720 4,180 =
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 7,642,814 (73,554) 985,803
OTHER FINANCING SOURCES (USES)
Transfers In 1,258,477 244,933 4,153
Transfers Out (344,458) 244,933 (2,411,103)
Total Other Financing Sources (Uses) 914,019 (2.406,950) NET CHANGE IN FUND BALANCES 8,556,833 171,379 (1,421,147) Fund Balances - Beginning of Year 48,026,201 5,871,917 (36,579) FUND BALANCES - END OF YEAR $ 56,583,034 $ 6,043,296 $ (1,457,726) See accompanying Notes to Financial Statements.
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Capital
Improvement Other Total
Capital Projects Governmental Governmental
Fund Funds Funds
$ $ 2,339,173
24,786,099
: 345,262
2,114,756
- - 763,306
1,943,499 3,027,527
- 547,827 2,115,552
144,205
: (268,779) 224,227
511,927
- 2,567,809 36,026,772
5,590,968
2,018,541
219,390 10,245,482
- 186,789 1,365,128
4,614,138
3,425,289 63.700 4,114,276
: 335,050
515,545
3,425,289 28,799,128
(3,425,289) 2,097,870 7,227,644
3,425,289 - 4,932,852
(2,884,617) (5,640,178)
3,425,289 (2,884,617) (707,326)
- (786,747) 6,520,318
400,002 11,154,868 65,416,409
$ 400,002 $ 10,368,121 $ 71,936,727
See accompanying Notes to Financial Statements.
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CITY OF SIGNAL HILL
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
Net Change in Fund Balances - Total Governmental Funds $ 6,520,318 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense and right to use assets are amortized over their lease term:
Capital Outlay $ 4,059,961
Depreciation Expense (1,644,811)
Amortization Expense (399,116)
2,016,034
The issuance of long-term liabilities provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of the governmental funds.
Issuance of debt increase long-term liabilities and the repayment of principal reduces long-term liabilities in the statement of net position:
Repayment of Revenue Bonds 120,000
Repayment of Lease Liability 215,050
335,050
Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Net Change in Compensated Absences (81,185)
Net Change in Accrued Interest Payable 383
Amortization of Bond Premium 23,049
(57,753)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. Conversely, collection of these revenues are reported in the governmental funds, but not in the Statement of Activities since they have been recognized in previous years. 1,982,165
Internal service funds are used by management to charge the costs of rendering motor vehicle and equipment services to City departments.
The net revenue of the internal service fund is reported with governmental activities. 204,013
Pension expense reported in the governmental funds includes the employer contributions made to the City's pension plan. In the Statement of Activities, pension expense includes the change in the net pension liability and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (1,329,755) OPEB expense reported in the governmental funds includes the employer contributions made to the City's OPEB plan. In the Statement of Activities, OPEB expense includes the change in the net OPEB liability and related change in OPE amounts for deferred outflows of resources and deferred inflows of resources. (44,021)
Change in Net Position of Governmental Activities $ 9,626,051 See accompanying Notes to Financial Statements.
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CITY OF SIGNAL HILL
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Business-type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
ASSETS Fund Service Fund
Current Assets:
Cash and Investments $ 3,441,366 $ 1,898,478
Accounts Receivable, Net 992,793 701
Prepaid Items 135,935 60,110
Escrow Deposits
Total Current Assets 4,570,097 1,959,289
Noncurrent Assets:
Capital Assets:
4,427,416 57,911
Construction in Progress 3,652,825
Depreciable Assets, Net of Accumulated Depreciation 19,720,613 983,852 Total Noncurrent Assets 27,800,854 1.041,763
Total Assets 32,370,951 3.001,052
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss Amount on Debt Refunding 58,502
Deferred Outflows - Pension Related 515,675 22,977
Deferred Outflows - OPEB Related 268,789 32,980
Total Deferred Outflows of Resources 842,966 55.957
LIABILITIES
Current Liabilities:
Accounts Payable 775,301 30,457
Accrued Interest Payable 43,494
Refundable Deposits 363,328 :
Advances from Other Funds 2,115,370
Current Portion of Long-Term Liabilities:
Loan Payable 50,000
490,000 :
Water Revenue Refunding Bonds
Compensated Absences 31,821 4,391
Total Current Liabilities 3,869,314 34,848
Long-Term Liabilities:
Loan Payable ,450,00
Water Revenue Refunding Bonds ,760,68
Compensated Absences 31,821 4,390
Net Pension Liability 1,720,555 76,662
Net OPEB Liability 944,399 115,877
Total Long-Term Liabilities 5,907,461 196,929
Total Liabilities 9,776,775 231,777
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pension Related 1,668,323 74,335
Deferred Inflows - OPEB Related 170,193 20,883
Total Deferred Inflows of Resources 1,838,516 95,218
NET POSITION
Net Investment in Capital Assets 23,726,827 1,041,763
Unrestricted (2,128,201) 1,688,251
Total Net Position 21,598,626 2,730,014
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds 93.611 Net Position of Business-Type Activity 21,692,237
See accompanying Notes to Financial Statements.
(31)
CITY OF SIGNAL HILL
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Business-type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
OPERATING REVENUES
Charges for Services $ 6,160,917 $ 773,734
Oth Total operating Revenues 47,096 1,380
6,208,013 775,114
OPERATING EXPENSES
Personnel Services 1,599,616 245,661
Contractual Services 202,995 19,031
Supplies 1,923,381 38,749
Material and Repairs 195,772 41,352
Utilities 172,717 -
Depreciation/Amortization 888,087 165,881
Other 718,426 21,170
Total Operating Expenses 5,700,994 531,844
OPERATING INCOME (LOSS) 507,019 243,270
NONOPERATING REVENUES (EXPENSES)
Investment Income (Loss) (76,572) (45,319)
Interest Expense (81,540)
Gain on Sale of Assets 41,665
Total Nonoperating Revenues (Expenses) (158,112) (3,654) INCOME (LOSS) BEFORE TRANSFERS 348,907 239,616
TRANSFERS
Transfer In 707,326 =
CHANGES IN NET POSITION 1,056,233 239,616
Net Position - Beginning of Year 20,542,393 2,490,398
NET POSITION - END OF YEAR $ 21,598,626 $ 2,730,014
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds 35,603 Change in Net Position of Business-Type Activity $ 1,091,836 See accompanying Notes to Financial Statements.
(32)
CITY OF SIGNAL HILL
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Business-type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers $ 6,105,517 $
Receipts from Interfund Services Provided 774,413
Payments to Suppliers (3,545,082) (133,339)
Payments to Employees (1,415,990) (214,333)
Net Cash Provided by Operating Activities 1,144,445 426,741
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Cash Paid to Other Funds (127,376)
Net Cash Provided (Used) by Noncapital and
Related Financing Activities (127,376)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from Sale of Capital Assets 41,665
1.500,000
Proceeds from Loan
707,326 :
Capital Grants
Acquisition/Construction of Property, Plant and Equipment (2,793,242) (172,250) Principal Paid (475,000)
Interest Paid (139,746) :
Net Cash Used by Capital and
Related Financing Activities (1,200,662) (130,585)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income 13,824 8,181
Change in Fair Value of Investments (90,396) (53,500)
Net Cash Used By Investing Activities (76,572) (45,319) NET INCREASE IN CASH AND CASH EQUIVALENTS (260,165) 250,837 Cash and Cash Equivalents - Beginning of Year 3,701,531 1,647,641 CASH AND CASH EQUIVALENTS - END OF YEAR $ 3,441,366 1,898,478
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
AMOUNTS REPORTED ON THE STATEMENT OF NET POSITION
Cash and Investments $ 3,441,366 $ 1,898,478
Restricted Cash and Investments
Cash and Cash Equivalents at End of Fiscal Year $ 3,441,366 $ 1,898,478 (Continued)
See accompanying Notes to Financial Statements.
(33)
CITY OF SIGNAL HILL
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
Business-type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income (Loss) $ 507,019 $ 243,270
Depreciation/Amortization 888,087 165,881
Change in Assets, Deferred Outflows of Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Assets:
Accounts Receivable (106,418) (701)
Prepaid Items (20,633)
Escrow Deposits (135,938) (2,891)
Deferred Outflows of Resources - Pensions 23,997
Deferred Outflows of Resources - OPEB 11,272 1,383
Increase (Decrease) in Liabilities:
Accounts Payable (195,853) 7,596
Refundable Deposits 3,922
(11,448) 2,574
Compensated Absences
Deferred Inflows of Resources - Pensions 1,562,427 (39,342) Deferred Inflows of Resources - OPEB 97,433 (12,745)
Net Pension Liability (1,396, 186) 70,394
Net OPEB Liability (103,869) 11,955
Net Cash Provided by Operating Activities $ 1,144,445 $ 426,741 See accompanying Notes to Financial Statements.
34)
CITY OF SIGNAL HILL
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
Successor
Agency to the
Signal Hill
Redevelopment Other
Agency Postemployment
Private-Purpose Benefit
Trust Fund Trust Fund
ASSETS
Cash and Investments $ 5,536,843 $ 3,276,657
Restricted Cash and Investments 7,857,249
Accounts Receivable 14,480 :
Capital Assets:
Land - 10,956,485
Total Assets 24,365,057 3.276,657
DEFERRED OUTFLOWS OF RESOURCES
Deferred Loss Amount on Debt Refunding 651,028
LIABILITIES
Accounts Payable 2,533,146
Accrued Liabilities 1,415,234 :
Accrued Interest Payable 433,333
Long-Term Liabilities:
Due Within One Year 6,085,000
Due in More Than One Year 28,478,441
Payable to the City of Signal Hill 10,779,585
Total Liabilities 49,724,739
NET POSITION
Held in Trust $ (24,708,654)
Restricted for OPEB 3,276,657
See accompanying Notes to Financial Statements.
(35)
CITY OF SIGNAL HILL
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2022
Successor
Agency to the
Signal Hill
Redevelopment Other
Agency Postemployment
Private-Purpose Benefit
Trust Fund Trust Fund
ADDITIONS
Distributions from County-Administered Redevelopment Property Tax Trust Fund $ 12,258,600 $
Contributions - Employer : 872,192
Contributions - Employee 70,110
Investment Earnings (Loss) (63,378) (496,520)
Total Additions 12,195,222 445,782
DEDUCTIONS
Personnel Services 297,545 798,430
Contractual Services 12,256
Project Costs 2,624,589
Interest 1,691,546
Administrative Expenses
Total Deductions 4,625,936 802,925
CHANGE IN NET POSITION 7,569,286 (357,143)
NET POSITION - BEGINNING OF YEAR, AS RESTATED (32,277,940) 3,633,800 NET POSITION - END OF YEAR $ (24,708,654) $ 3.276,657
See accompanying Notes to Financial Statements.
(36)
NOTES TO THE FINANCIAL STATEMENTS
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CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The reporting entity City of Signal Hill includes the accounts of the City of Signal Hill (the primary government), the Signal Hill Public Financing Authority (the Financing Authority), and the Signal Hill Housing Authority (the Housing Authority).
The City of Signal Hill was incorporated in 1924 under the general laws of the state of California and enjoys all the rights and privileges pertaining to "General Law" cities. On November 7, 2000, the Charter of the City of Signal Hill was adopted by a vote of the people. As a result, the City will enjoy all rights and privileges pertaining to "Charter Law" The Signal Hill Public Financing Authority was formed October 15, 1996, as a joint power of authority between the City and the former Signal Hill Redevelopment Agency (the Agency) for the | purpose of providing financing and funding of public capital improvements.
The Signal Hill Housing Authority was formed December 12, 2000 pursuant to provisions of the California Health and Safety Code. The primary purpose of the Housing Authority is to provide suitable, safe and sanitary housing opportunities for the City's residents.
The Signal Hill Municipal Financing Authority was formed August 22, 2017 as a joint power of authority between the Housing Authority and the City for the purpose of assisting the City and the Housing Authority with their respective financings.
The City of Signal Hill is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component unit's board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The Financing Authority, Housing Authority, and Municipal Financing Authority have been accounted for as "blended" component units of the City. Despite being legally separate, the Financing Authority, Housing Authority, and Municipal Financing Authority are so intertwined with the City that they are, in substance, part of the City's operations.
Accordingly, the balances and transactions of the Financing Authority, Housing Authority, and Municipal Financing Authority are reported within the funds of the City.
Separate financial statements of the Financing Authority, Housing Authority, and Municipal Financing Authority are not prepared.
The following criteria were used in determining that the Financing Authority, Housing Authority, and Municipal Financing Authority were "blended" component units:
• The members of the City Council also act as the governing body of the Financing Authority, Housing Authority, and Municipal Financing Authority.
The Financina Authoritv. Housina Authoritv. and Municipal Financina Authori e managed by employees of the City. A portion of the Citv's salary an overhead expenses is billed to the Authorities each year. • The City, Financing Authority, Housing Authority, and Municipal Financing Authority are financially interdependent.
(39)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City.
For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (current and long term) are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year in which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements imposed by the provider have been met.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water enterprise fund and of the government's internal service funds are charges to customers for services. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. (40)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Governmental tund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, generally only current assets and current liabilities are reported in the governmental funds. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long term liabilities, claims and judgments, and compensated absences which are recognized as expenditures only when payment is due.
Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, transient occupancy taxes and oil production taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.
Private purpose trust and pension (and other employee benefit) trust fiduciary funds are reported using the economic resources measurement focus and the accrual basis of accounting.
The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity with a self-balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. All general tax revenues and other receipts allocated by law or contractual agreement to other funds are accounted for in this fund. Expenditures of this fund include general operating costs not paid through other funds.
The Housing Authority Special Revenue Fund is used to account for the activities of the Housing Authority. 20% of collections on the City's advances to the former redevelopment agency are to be deposited into this fund for purposes of the City's affordable housing needs.
(41)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The Capital Grants Special Revenue Fund is used to account for projects funded by various grants received from other government agencies. The majority of funds received are transferred to the Capital Improvements Capital Projects fund to finance the relatec capital project expenditures. The amount of activity in this fund varies from year-to-year, and this fund is consistently reported as a major governmental fund.
The Capital Improvement Capital Projects Fund is used to account for major capital improvement projects not accounted for in other funds.
The City reports the following major enterprise fund:
The Water Enterprise Fund is used to account for financial activity relative to the purchase, production, storage and distribution of water used by the community, as well as the maintenance, repair and replacement of related equipment and pipeline.
Revenues consist primarily of water sales.
Additionally, the City reports the following fund types:
Proprietary Funds
The Vehicle and Equipment Internal Service Fund is used to account for the furnishing of vehicle and equipment services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such vehicles and equipment are used or services rendered.
Fiduciary Funds
The Successor Agency to the Signal Hill Redevelopment Agency Private Purpose Trust Fund is used to account for the county auditor controller's semi-annual property tax distributions from the Redevelopment Property Tax Trust Fund of the Successor Agency of the former Signal Hill Redevelopment Agency to pay amounts due on enforceable obligations and to pay for specified administrative costs.
The Other Postemployment Benefit Trust Fund is used to account for resources that are held in an irrevocable trust for the benefit of participants in the City's other postemployment benefit plan.
(42)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Implementation of New Accounting Pronouncements
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on receivable and a deferred inflow of resources.
The City adopted the requirements of the guidance effective July 1, 2021 and has applied the provisions of this standard to the beginning of the period of adoption.
E. Cash and Cash Equivalents
The Water Enterprise Fund and Vehicle and Equipment Internal Service Fund participate in the pooling of City-wide cash and investments. Amounts from the pool are available to these funds on demand. Therefore, the cash and investments (restricted and unrestricted) reported in the Water Enterprise Fund and Vehicle and Equipment Internal Services Fund are considered to be cash and cash equivalents for purposes of the statement of cash flows.
F. Cash and Investments
Investments are reported in the accompanying basic financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Investments in external pools are valued based on the stated fair value represented by the external pool.
Changes in fair value that occur during a fiscal year are recognized as investment income (loss) reported for that fiscal year. As of June 30, 2022, a decrease in fair value changes in a vase, and any gains or bosses real eld in the ig underest or saile st investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund's share in this pool is displayed in the accompanying financial statements as cash and investments.
G. Restricted Assets
Restricted assets are reported for certain cash and investments that are to be used for civic center improvement projects.
(43)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets
Capital assets, which include land, site improvements, buildings and improvements, gormant, inarvene apace coral of as andes fir, at signals and assets are recorded at acquisition value at the date of donation. The costs of normal assets lives are not capitalized.
Capital assets are depreciated/amortized using the straight-line method over the following estimated useful lives:
Structures and improvements - Water Enterprise 20 to 50 years Structures and improvements - other than Water Enterprise 5 to 40 years Water rights 40 years
Equipment and furniture 3 to 20 years
Vehicles and major equipment 3 to 15 years
Infrastructure 40 to 90 years
I. Prepaid Items
Certain payments to vendors reflect costs applicable to a future accounting period and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items are recorded as expenditures/expenses during the periods benefited.
J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The categories of deferred outflows of resources reported in the statement of net position relate to pensions and other postemployment benefits which are more fully discussed in Notes 9, and 10. The business-type activities, water enterprise fund, and successor agency to the Signal Hill Redevelopment Agency private-purpose trust fund statements of net position also report a deferred loss amount on debt refunding which is more fully discussed in Notes 6D and
17. (44)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the statement of net position and the governmental fund balance sheet include a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The categories of deferred inflows of resources reported in the government-wide and proprietary funds statements of net position related to pensions and other postemployment benefits are more fully discussed in Notes 9, and 10. The governmental activities statement of net position and the general fund balance sheet also report a deferred inflow of resources related to unavailable revenues which is more fully discussed in Note 4.
K. Leases
Lessee
The City is a lessee for noncancellable leases of land and improvements. The City recognizes a lease liability and an intangible right-to-use asset (lease asset) in the governmental activities in the government-wide statement of net position. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lessor
The City is a lessor for a noncancellable leases of land and improvements. The City recognizes a lease receivable and a deferred inflow of resources in the statement of net position and in the governmental fund balance sheet. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
(45)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Employee Compensated Absences
Compensated absences are reported in governmental funds as a liability, only if they nave matured. The balance of unpaid vacation and compensatory time at year-end is recorded as a long-term liability of the governmental activities, as these amounts will be liquidated from future resources rather than expendable available financial resources.
Compensated absences are primarily liquidated in the General Fund.
Unpaid compensated absences in proprietary fund types are recorded as a liability in those funds as vested benefits to the employees accrue.
The City does not reimburse for unused sick pay upon an employee's separation other than for retirement. The percentage pay-off at retirement varies based on employee group agreements and/or years of service of employment. The City has an annual cash- out program ranging from 48 - 80 annual maximum hours for its employees based on tiered, years of service of employment. The balance of unused sick pay at fiscal year- end for those employees who meet minimum eligibility requirements, is recorded as a long-term liability, as these amounts will be liquidated from future resources rather than expendable available resources.
M. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Signal Hill's California Public Employees' Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Pension liabilities are primarily liquidated from the General Fund. Investments are reported at fair value.
(46)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. OPEB
For purposes of measuring the net OPEB liability and deferred outflows/inflows of the Plan. For this purpose, the City's OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. OPEB liabilities are primarily O. Fund Balances
The fund balances reported on the fund statements consist of the following categories:
Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted - This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation.
Committed - This classification includes amounts that can be used only for the specific purposes determined by the City Council through the adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken to remove or revise the limitation.
Assigned - This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The City Council assigns fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget.
Unassigned - This classification includes the residual balance for the government's general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.
(47)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Fund Balances (Continued)
The City's minimum fund balance policy is to maintain, in reserves, six months of General Fund operating expenditures.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balance first.
Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is applied first, followed by assigned fund balance, and P. Property Taxes
Property taxes are an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on November 1 and February 1, which become delinquent on December 10 and April 10, respectively. The County of Los Angeles bills and collects property taxes for the City. Remittance of property taxes to the City is accounted for in the City's General Fund.
Q. Claims and Judgments
When it is probable that a claim liability has been incurred at year-end and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self insurance program claims payable, which includes an estimate for incurred but not reported claims (IBNR).
Under the City's self-insurance program, deposits to the Joint Powers Insurance Authority (Note 14) are recorded as insurance expenditures in the period to which they relate in the General Fund. These deposits are subject to retrospective adjustment.
Favorable claims experience in prior years results in a refund of deposits from the Insurance Authority and such refunds, if any, are recorded as deposits since they will be used to offset future deposit requirements. Adverse claims experience in prior years results in the payment of additional deposits which are recorded expenditures when incurred.
(48)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Net Position
Net position reported in the government wide and proprietary fund financial statements are classified into three components - net investment in capital assets; restricted; and unrestricted. These classifications are defined as follows:
• Net investment in capital assets - This component of net position consists of significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.
At June 30, 2022, net investment in capital assets, was determined as follows:
Governmental Business-Type
Activities Activity
Capital Assets, Net of Accumulated Depreciation
and Amortization $ 101,143,635 $ 27,800,854
Bonds, Net of Unamortized Premiums and Discounts (8,447,014) (2,250,686) Leases Payable (13,535,982)
(1,500,000)
Loan Payable
Accounts Payable Related to Capital Assets (700,745) (199,193) Retentions Payable Related to Capital Assets (145,743) (182,650) Add Back:
Unamortized Deferred Loss Amount on Debt Refunding 58,502 145024
Bond Proceeds not Available for Capital Purposes
Total $ 78,459,175 $ 23,726,827
• Restricted net position - This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. All restricted net position is expendable. • Unrestricted net position - This component of net position consists of net position not meet the definition of "net investment in capital assets" or "restricted."
(49)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Net Position Flow Assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted - net position in the government wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City's practice to consider restricted - net position to have been depleted before unrestricted - net position is applied, however it is at the Council's discretion.
T. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. Specifically, the City has made certain estimates and assumptions related to the collectability of its receivables (e.g. accounts receivable, intergovernmental receivables, loans receivable, amounts due from other funds and amounts advanced to other funds), the depreciatior of its capital assets and the ultimate outcome of claims and judgments. Actual results could differ from those estimates and assumptions.
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2022 are classified in the accompanying financial statements as follows:
Government- Fiduciary
Wide Funds
Statement of Statement of
Net Position Net Position
$ 67,122,995 $ 5 75.936.495
Cash and Investments 8,813,500
Restricted Cash and Investments 13,183 7,857,249 7,870,432 Total Cash and Investments 67,136,178 16,670,749 83,806,927 Cash and investments at June 30, 2022 consisted of the following:
Cash on Hand $ 8,350
Deposits with Financial Institutions 2,281,424
Investments 81,517,153
Total Cash and Investments $ 83,806,927
(50)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City's Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio* in One Issuer United States Treasury Obligations 5 years None None
United States Government Sponsored
Agency Securities 5 years None None
Bankers Acceptances 180 days 40% 10%
Time Certificate of Deposits 1 year 30% 10%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% 10%
Repurchase Agreements 1 year None None
Medium-Term Corporate Notes 5 years 30% 10%
Local Agency Investment Fund (LAIF) N/A None None
Mutual Funds N/A 20% 10%
County Pooled Funds N/A None None
N/A - Not Applicable
* Excluding amounts held by bond trustee that are not subject to California Government Code restrictions
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments authorized for funds held by bond trustee include, United States Treasury Obligations, United States Government Sponsored Agency Securities, Guaranteed Investment Contracts, Commercial Paper, Local Agency Bonds, Banker's Acceptance and Money Market Mutual Funds. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker's Acceptance which are limited to one year.
(51)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
internments net by Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:
- Remaining Maturity (in Months)
12 Months 13 - 24 25 - 60
Investment Type or Less Months Months Total
Local Agency Investment Fund $ 52,912,488 $ - $ - $ : 52,912,488 US Government Agency Securities 588,088 495,564 6,931,054 8,014,706 Negotiable Certificates of Deposit 752,507 1,458,385 5,948,687 8,159,579 Money Market Mutual Funds 1,283,294 1,283,294
Held by Trustees:
Money Market Mutual Funds 8,112,258 - - 8,112,258
Mutual Funds 3,034,828 3,034,828
Total 66,683,463 $ 1,953,949 $ 12,879,741 $ 81,517,153
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating as required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Standard and Poor's, as of year-end for each investment type:
Total Minimum
as of Legal Not
Investment Type June 30, 2022 Ratings AAA AA+ Rated
Local Agency Investment Fund 52,912,488 N/A 5 - $ = 5 52,912,488 US Government Agency Securities 8,014,706 AA 8,014,706
Negotiable Certificates of Deposit 8,159,579 N/A 8,159.579 Money Market Mutual Funds 1,283,294 AAA 1,283,294 :
Held by Trustees:
Money Market Mutual Funds 8,112,258 AAA 8,112,258 : -
Mutual Funds 3.034.828 N/A 3.034,828
Total $ 81.517,153 9,395,552 $ 8,014,706 64,106,895
N/A - Not Applicable
(52)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City did not have any investments in any one issuer that represented 5% or more of total City's investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City's deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2022, the City deposits (bank balances) were insured by the Federal Deposit Insurance Corporation and the remaining balances were collateralized under California Law.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Fair Value Measurements
The City categorizes its fair value measurement within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices for similar assets in active markets, and Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements, which includes a negative $1,844,826 fair value adjustment recognized as of June 30, 2022 :
(53)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
Quoted Observable Unobservable
Prices Inputs
Level 2 Level 3
U.S. Government Agency Securities 8,014,706 8,014,706
Negotiable Certificates of Deposit 8,159,579 8,159,579
Held by Trustees:
Mutual Funds 3,034,828 3,034,828
3,034,828 $ 16.174,285 $ 19,209,113
Local Agency Investment Fund* 52,912,488
Money Market Mutual Funds* 1,283,294
Held by Trustees:
Money Market Mutual Funds* 8,112,258
$ 81,517,153
* Not subject to fair value measurement hierarchy.
The annual money-weighted rate of return on fiduciary OPE plan investments (calculated as the internal rate of return on plan investments, net of plan investment expense) tor the year ended June 30, 2022 was a negative 12.94%. The annual money-weighted rate of return expresses investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested.
(54)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:
Balance at
July 1, 2021, Balance at
Restated (1) Additions Deletions June 30, 2022
Governmental Activities
Capital Assets, not Being Depreciated:
Land $ 34,558,469 $ 940,988 $ (375503 3 35497497
Construction in Progress 1.016,144 3.356,852 3,997,493
Total Capital Assets, not
Being Depreciated 35,574,613 4,297,840 (375,503) 39,496,950 Capital Assets, Being Depreciated and
Amortized:
Structure and Improvements 47,299,148 (75,557) 47,299,148 Equipment and Furniture 3,072,612 137,624 3,134,679
Vehicles and Major Equipment 3,082,141 3,029,777
Right-to-Use Lease Assets 13,751,032 172250 121614) 13,751,032 30,170,717 30,170,717
Total Capital Assets,
Being Depreciated and Amortized 97,375,650 309,874 (300,171) 97,385,353 Less Accumulated Depreciation and
Amortization for:
Structure and Improvements (10,889,822) (1,152,819) (12,042,641) Equipment and Furniture (2,532,429) (81,230) 75,557 (2,538,102) Vehicles and Major Equipment (2,223,399) (154,936) 224,614 (2,153,721) Right-to-Use Lease Assets (399,116) (399,116)
Infrastructure (18,183,381) (421,707) (18,605,088)
Total Accumulated Depreciation
and Amortization (33,829,031) (2,209,808) 300,171 (35,738,668) Total Capital Assets, Being
Depreciated and Amortized, Net 63,546,619 (1,899,934) 61,646.685 Total Governmental Activities
Capital, Net $ 99.121.232 $ 2.397.906 (375.503) $ 101.143.635 (1) The beginning balance was restated to add right-to-use lease assets due to the implementation of GASB Statement No. 87, Leases. See Note 1D. (55)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3 • CAPITAL ASSETS (CONTINUED)
Capital Asset Activity (Continued)
Balance at Balance at
July 1, 2021 Additions Deletions June 30, 2022
Business-Type Activity
Capital Assets, not Being Depreciated:
Land $ 4,427,416 $ - - 4,427,416
Construction in Progress 926,823 2,793.242 (67,240) 3,652,825 Total Capital Assets, not
Being Depreciated 5,354,239 2,793,242 (67,240) 8,080,241 Capital Assets, Being Depreciated:
Water Rights 1,215,186 : 1,215,186
Reservoirs and Tanks 12,174,543 12,174,543
Wells 10,961,240 67,240 11,028,480
Mains 9,893,973 9,893,973
Pumps 1,384,407 1,384,407
Fire Hydrants 564,667 564,667
Meters 429,048 429,048
Services 1,443,630 1,443,630
Structures 1,243,976 1,243,976
Equipment and Furniture 1,137,472 1,137,472
Total Capital Assets,
Being Depreciated 40,448,142 67,240 - 40,515,382
Less Accumulated Depreciation for:
Water Rights (910,493) (30,380) (940,873)
Reservoirs and Tanks (5,691,672) (267,159) (5,958,831)
Wells (1,839,890) (265,781) (2,105,671)
Mains (6,614,365) (189,770) (6,804,135)
Pumps (1,201,430) (35,717) (1,237,147)
Fire Hydrants (560,185) (731) (560,916)
Meters (429,048) (429,048)
Services (937,799) (27,579) (965,378)
Structures (693,286) (28,673) (721,959)
Equipment and Furniture (1,028,514) (42,297) (1,070,811) Total Accumulated
Depreciation (19,906,682) (888,087) (20,794,769)
Total Capital Assets,
Being Depreciated, Net 20,541,460 (820,847) 19,720.613
Total Business-Type Activity
Capital, Net $ 25,895,699 1,972,395 (67,240) $ 27,800,854 (56)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3 CAPITAL ASSETS (CONTINUED)
Depreciation/Amortization Expense
Depreciation/amortization expense was charged to City functions/programs as follows:
Governmental Activities:
General Government $ 43,224
Community Services 604,352
540,914
Public Works 34,614
Internal Service Fund Depreciation Charged
to Programs 165,881
Allocated Depreciation 1,388,985
Unallocated Infrastructure Depreciation 421,707
Total Depreciation Expense 1,810,692
Unallocated Lease Assets Amortization 399,116
Total Depreciation and Amortization Expense -
Governmental Activities $ 2,209,808
Business-Type Activity:
Water $ 888,087
NOTE 4 UNAVAILABLE REVENUES
At June 30, 2022, deferred inflows of resources - unavailable revenues, reported in the governmental fund financial statements, consisted of the following:
Special Other Total
General Revenue Governmental Governmental
Funds
Unavailable Lease Revenue $ 24.081,733 $ 24.081,733
- 1,457,726 308,925 1,766,651
Unavailable Grant Revenue
Unavailable Interest Long-Term
Notes Receivables 3,950,072 11,380 3,961,452
Total $ 28.031,805 1,457,726 320,305 $ 29,809.836
NOTE 5 LONG-TERM RECEIVABLES
A. Receivable from Successor Agency
General
Description Fund
Long-Term Loans to Finance Improvements and
Operations Related to and Within the Former
Redevelopment Agency's Project Areas $ 10,779,585
For further discussion of the receivable due from the Successor Agency, see Note 17F. (57)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 5 LONG-TERM RECEIVABLES (CONTINUED)
B. Loans Receivables
The discontinued First Time Homebuyer Program provided down payment assistance to first time low or moderate income homebuyers. Financial assistance was provided in the form of deferred second mortgages, secured by promissory notes and deeds of trust on the property. The second mortgage loan is due if the unit is sold or if the property no longer qualifies as the buyer's principal residence. The loans are equity participation loans if paid within the first 10 years. The principal loan amount plus a declining percentage of equity (depending on how long the home was owned) is due to the City at the time of sale. After 10 years, no equity is due the City. After 30 years, the homebuyer has the option of repaying the principal amount in full, or amortizing the principal amount due over 10 years with an interest payment at the prime rate plus 1%. Currently, three loans totaling $38,341 remain outstanding.
The discontinued Residential Rehabilitation Loan Program provided funding to Signal Hill homeowners for exterior improvements to their residences. The loans are secured by promissory notes and second deeds of trust on the property. Loans are to be repaid upon sale or transfer of the property. Currently, one loan totaling $6,037 remains outstanding.
In February 2015 a loan of $7,729,480 secured by a deed of trust on real property was provided pursuant to a disposition and development agreement with Meta Housing to provide funding for the 72-unit affordable housing development called Zinnia. The loan accrues interest at 3% interest and is repaid on each April 1st in which there was positive cash flow for the calendar year, or portion thereof, ending on the immediately preceding December 31, 50% of that year's net cash flow, based on the contribution of the Signal Hill Housing Authority. The first repayment shall be due on April 1st following the issuance of the first Certificate of occupancy, and the last payment shall be due on April 1st fifty-five (55) years later. The amount outstanding at June 30, 2022 was $9,112,644 (including accrued interest of $1,521,954). The City also set up an allowance for doubtful accounts, on this loan of $ 7,471,954.
C. Leases Receivables
The City, acting as lessor, leases land and improvements under five long-term, noncancellable lease agreements. The leases expire at various dates through November 30, 2055. The net present values of the leases receivable were determined using discount rates of either 1.198% or 2.046%. Rent payments ranging from $5,523 to $20,525, are received monthly. During the year ended June 30, 2022, the District recognized $864,138 and $493,561 in lease revenue and interest revenue respectively, pursuant to these lease agreements.
The leases provide for increases in future minimum monthly rent payments, subject to certain stated increases.
(58)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2022, was as follows:
Balance at
July 1, 2021, Balance at Due Within
_Restated (1) Additions Deletions June 30, 2022 One Year Governmental Activities:
Other Debt:
2018 Library Lease Revenue Bonds $ 8,325,000 $ - $ (120,000) $ 8,205,000 $ 650,000 Plus 2018 Original Issue Premium 265.063 (23,049) 242,014 Total Library Lease Revenue Bonds 8,590,063 (143,049) 8,447,014 650,000 Other Long-Term Liabilities:
Leases Payable 13,751,032 858.215 (215,050) 13,535,982 219,491 Compensated Absences 874,550 (774,456)
Total Governmental-Type Activity I 23.215.645 858,215 $ (1,132,555) 5 231.30 3 1370158 Business-Type Activity:
Other Debt:
2016 Water Revenue Refunding Bonds $ 2,550,000 • 8 (475,000) $ 2,075,000 490,000 Plus 2016 Original Issue Premium 227,741 (52,055) 175,686 Total Refunding Bonds Payable 2,777,741 (527,055) 2,250,686 490,000 Other Long-Term Liabilities:
WRD Loan - Direct Borrowing 1,500,000 1,500,000 50,000
Compensated Absences 84,694 (96,142) 31,821
Total Business-Type Activity 1,584,694 103022 3 31.821
(623,197)
(1) The beginning balance was restated to add leases payable due to the implementation of GASB Statement No. 87, Leases. See Note 1D.
A. 2018 Library Lease Revenue Bonds
On January 10, 2018, the City issued $8,640,000 2018 Library Lease Revenue Bonds to fund the construction of the City's new library. The 2018 Bonds were issued at a premium 1 of $345,729, which is being amortized on a straight-line basis of $23,049 annually as interest expense through the year 2032. The 2018 bonds were issued as $8,640,000 in serial bonds with a maturity date of December 1, 2032. These bonds carry interest at 2.0-3.5%.
There is no reserve requirement associated with this bond.
The annual requirements to amortize the outstanding 2018 bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2023 650,000 $ 229,088 $ 879,088
2024 660,000 214,350 874,350
2025 680,000 198,425 878,425
2026 700,000 181,175 881,175
2027 715,000 163,488 878,488
2028 - 2032 3,930,000 480,075 4,410,075
2033 870,000 15,225 885,225
Total $ 8,205,000 $ 1,481,826 $ 9,686,826
(59)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
B. Leases Payable
The City leases land and improvements for various terms under two long-term, noncancelable lease agreements. The leases expire at various dates through December 31, 2055. The net present values of the leases payable were determined using a discount rate of 2.046%. Monthly lease payments total $41,129. The leases provide fol increases in future minimum monthly rental payments subject to stated increases.
Total future minimum lease payments under lease agreements are as follows:
Year Ending June 30, Principal Interest Total
2023 219,491 $ 274,054 $ 493,545
2024 224,024 269,521 493,545
2025 232,073 264,874 496,947
2026 248,839 259,967 508,806
2027 260,124 254,724 514,848
2028 - 2032 1,429,780 1,189,809 2,619,589
2033 and Thereafter 10,921,651 2,918,657 13,840,308
Total 13,535,982 5,431,606 18,967,588
C. Compensated Absences
There is no fixed payment schedule for earned but unpaid compensated absences in both the governmental and business type activities.
D. WRD Loan Payable
During the current fiscal year, the City obtained a 10-year, zero-interest, note in the amount of $1,500,000 from the Water Replenishment District. Principal in the amount of $150,000 is due annually. The proceeds from the note are being used to construct a new water well. Loan repayments will not begin until the project is complete. As of June 30, 2022, the project has not been completed. The note contains a provision that in event of default, outstanding amounts become due immediately if the City is unable to make payment.
E. 2016 Water Revenue Refunding Bonds
On November 17, 2016, the City issued $4,305,000 2016 Water Revenue Refunding Bonds to advance refund the Signal Hill Public Financing Authority's outstanding 2006 Water Revenue Refunding Bonds. The 2006 Bonds were issued at a premium of $468,495, which is being amortized on a straight-line basis of $52,055 annually as interest expense through the year 2026. The refunded bonds have been redeemed.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $156,004. This difference, reported as deferred outflows of resources, is being amortized on a straight-line basis of $17,334 annually as interest expense through the fiscal year 2026.
(60)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 LONG-TERM LIABILITIES (CONTINUED)
E. 2016 Water Revenue Refunding Bonds (Continued)
The 2016 Bonds were issued as $4,305,000 in serial bonds with a maturity date of November 1, 2025. These bonds carry interest at 3-5%.
The City is required by the 2016 Bond Covenant to maintain a debt service coverage ratio of at least 125%. As of the fiscal year ended June 30, 2022, this ratio was met.
There is no reserve requirement associated with this bond.
The annual requirements to amortize the outstanding 2016 bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2023 490,000 81,663 571,663
2024 510,000 63,200 573,200
2025 530,000 42,800 572,800
2026 545,000 10,900 555,900
Total 2,075,000 $ 198,563 $ 2,273,563
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2022, is as follows:
Due From/To Other Funds
Receivable Fund Payable Fund Amount
General Fund Capital Grants Special
Revenue Fund $ 1,457,726
Other Governmental Funds 359,172
$ 1,816,898
The interfund payable balances represent routine and temporary cash flow assistance from the General Fund until the amounts receivable from other governments are collected to reimburse eligible expenditures.
Advances To/From Other Funds
Advances receivable and payable balances at June 30, 2022, are as follows:
Receivable Fund Payable Fund Amount
General Fund Water Enterprise Fund $ 2,115,370
General Fund Housing Authority Special Revenue Fund 6,904 Other Governmental Funds Housing Authority Special Revenue Fund 1,633,786 Total 3,756,060
(61)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS (CONTINUED) Advances To/From Other Funds (Continued)
In FY 2015-16 the City entered into an interfund agreement whereby the General Fund issued a loan to the Water Fund for $2,750,000, for the purpose of financing the construction of Well #9. Interest is based on the LAIF rate plus 1%, as determined every January. Payments are due annually on July 1, through July 2036.
In FY 2015-16, the Signal Hill Housing Authority entered into a difficult development areas agreement with Meta Housing to develop affordable housing. As this was new development, an assessment of Park In-Lieu, Traffic Impact Fees, and Water Impact Fees were estimated based on the number of units and area of the property. These fees total $6,904 to the General Fund, $861,802 to the Park Development Special Revenue Fund, $741,381 to the Water Development Special Revenue Fund, and $30,603 to the Traffic Impact Special Revenue Fund and are a liability of the Housing Authority to the other funds as of year-end.
The Housing Authority will repay as it obtains repayment from the developer.
Interfund Transfers
Transfer In to Fund Transfers Out of Fund Amount
General Fund Capital Grants Special Revenue Fund 63,496(a) Other Governmental Funds 1,194,981 (b)
ousing Authori
necial Revenue Fur General Fund 244,933 (c)
Capital Grants Special
Revenue Fund General Fund 4,153 (a)
Capital Improvement
Capital Projects Fund General Fund 85,359 (a)
Capital Grants Special Revenue Fund 2,347,607 (a)
Other Governmental Funds 992,323 (a)
Water Enterprise Fund General Fund 10,013 (b)
Other Governmental Funds 697,313 (b)
Total $ 5,640,178
The purposes for significant interfund transfers made during the fiscal year ended June 30, 2022 were as follows:
(a) To provide funds for various capital projects in accordance with the City's capital improvement program.
(b) To provide funds for ongoing city programs.
(c) To transfer the Housing Authority's 20% share of the Successor Agency's loan payment to the general fund as required by state law.
(62)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 8 INDIVIDUAL FUND DISCLOSURES
Expenditures Exceeding Appropriations
For the year ended June 30, 2022, expenditures exceeded appropriations in the following programs (the legal level of budgetary control):
General Fund:
Debt Service $ 492,995
The expenditures exceeding appropriations were funded by existing fund balances in the respective funds and, in certain cases, excess revenues received in the current year.
Deficit Fund Balance
The Capital Grants Special Revenue Fund, the HDA Grant Special Revenue Fund and the Planning Grant Special Revenue Fund had deficit fund balances of $1,457,726, $94,795 and $208,091, respectively at year-end which will be eliminated upon the recognition of unavailable revenues related to amounts due from other governments.
NOTE 9 DEFINED BENEFIT PENSION PLANS
A. General Information about the Pension Plans
Plan Descriptions
All qualified employees are eligible to participate in the City's Miscellaneous and Safety Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CalPERS).
Benefit provisions under the Plans are established by state statute and City resolution.
CaPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CaPERS website.
Benefits Provided
CaPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Classic Members with five years of total service are eligible to retire at age 50 and PEPRA members must be at least 52 years old to retire with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.
(63)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
The Plans' provisions and benefits in effect for the current year are summarized as follows:
Miscellaneous
On or After
June 10, 2010
Prior to and prior to On or After
Hire Date June 10, 2010 January 1, 2013 January 1, 2013 Benefit Formula 2%@55 2%@60 2%@62
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 - 63 50 - 63 52-67
Monthly Benefits, as a % of Eligible
Compensation 1.43% to 2.42% 1.09% to 2.42% 1.00% to 2.50% Required Employee Contribution Rates 7% 7% 6.75%
Required Employer Contribution Rates:
Normal Cost Rate 10.880% 9.130% 7.590%
Payment of Unfunded Liability $ 974,082 $ 17,547 $ 8,974 Safety
On or After
June 10, 2010
Prior to and prior to On or After
Hire Date June 10, 2010 January 1, 2013 January 1, 2013 Benefit Formula 3% @50 3%@55 2.7%@57
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 - 55 50 - 55 50 - 57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 2.40% to 3.00% 2.00% to 2.70%
Required Employee Contribution Rates 9% 9% 13.75%
Required Employer Contribution Rates:
Normal Cost Rate 25.590% 23.620% 13.980%
Payment of Unfunded Liability $ 1,273,463 $ 8,591 $ 6,923 Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
(64)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Contributions (Continued)
City contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contributions requirements are classified as plan member contributions. For the year ended June 30, 2022, the City made contributions totaling $3,414,653 ($1,482,465 Miscellaneous Plan and $1,932, 188 Safety Plan).
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2020, the measurement date, the City reported net pension liabilities for its proportionate shares of the net pension liability of all Plans as follows:
Proportionate
Share of
Net Pension
Liability
Miscellaneous $ 7,903,332
Safety 11,560,225
Total Net Pension Liability 19,463,557
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City's proportionate share of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for each Plan as of the measurement date ended June 30, 2020 and 2021 was as follows:
Miscellaneous Safety
Proportion - June 30, 2020 0.33135 % 0.26785 %
Proportion - June 30, 2021 0.41623 0.32940
Change - Increase (Decrease) 0.08488 0.06156
(65)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pensures Rites openin Cos and Deferred Outlows nilows of For the year ended June 30, 2022, the City recognized pension expense of $4,962,813 ($2,649,225 Miscellaneous Plan and $2,313,588 Safety Plan). At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to Miscellaneous
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to Measurement Date $ 1,482,465 $ Differences Between Expected and Actual Experience
886.274
Changes in Assumptions
Changes in Employer's Proportion and Differences
Between the Employer's Contributions and the
Employer's Proportionate Share of Contributions (764,211) Net Differences Between Projected and Actual
Earnings on Plan Investments (6,899,191)
Total $ 2,368,739 $ (7,663,402)
Safety
Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension Contributions Subsequent to Measurement Date $ - 1,932,188 $ Differences Between Expected and Actual Experience 1,975,054 :
Changes in Assumptions -
Changes in Employer's Proportion and Differences
Between the Employer's Contributions and the
Employer's Proportionate Share of Contributions (782,231) Net Differences Between Projected and Actual
Earnings on Plan Investments (6,880,556)
Total $ 3,907,242 $ (7,662,787)
The $3,414,653 ($1,482,465 Miscellaneous Plan and $1,932, 188 Safety Plan) reporter as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2023.
(66)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous
Year Ending June 30, Amount
2023 $ (1,578,228)
2024 (1,611,501)
2025 (1,680,820)
2026 (1,906,579)
2027
Thereafter :
Safety
Year Ending June 30, Amount
2023 (1,101,358)
2024 (1,183,564)
2025 (1,509,377)
2026 (1,893,434)
2027
Thereafter :
Actuarial Methods and Assumptions
The collective total pension liability for the June 30, 2021 measurement period was letermined by an actuarial calculation as of June 30, 2020, with update procedures use o roll forward the total pension liability to June 30. 2021. The June 30. 2021. tota pension liability was based on the following actuarial methods and assumptions:
Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:
Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increases (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefit Increase (3) (3)
(1) Varies by entry age and service
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CaPERS Experience Study for the period from 1997 to 2015. Pre-retirement nd Post-retirement mortality rates includes 15 years of projected mortality rate cludes 15 years of projected mortality improvement using 90% of Scale MP-2016 published of Actuarial Assumptions report from December 2017 that can be found on the CaPERS website. (3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.
(67)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Actuarial Methods and Assumptions (Continued)
All other actuarial assumptions used in the June 30, 2020, valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality, and retirement rates. The Experience Study report can be obtained at the CalPERS's website under Forms and Publications.
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CaPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CaPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from
2.50% to 2.30% as recommended in the November 2021 CaPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
Discount Rate
The discount rate used to measure the total pension liability was 7.15% for each Plan.
The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plans' fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
(68)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Long-Term Expected Rate of Return (Continued)
In determining the long term expected rate of return, CaPERS took into account both 1 and long term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:
New Real Return Real Return
Strategic Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00% 4.80% 5.98 %
Global Fixed Income 28.00 1.00 2.62
Inflation Assets 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Estate 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
Total 100.00%
(a) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period
(c) An expected inflation of 2.92% used for this period Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City's proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $ 15,418,933 $ 20,069,038
Current Discount Rate 7.15% 7.15%
Net Pension Liability $ 7,903,332 $ 11,560,225
1% Increase 8.15% 8.15%
Net Pension Liability $ 1,690,291 $ 4,571,286
(69)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 9 DEFINED BENEFIT PENSION PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CaPERS financial reports.
C. Payable to the Pension Plan
At June 30, 2022, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2022.
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
In addition to providing pension benefits, the City provides certain health care benefits for retired employees through the California Public Employees Medical and Hospital Care Act (PEMCHA) in accordance with a City Council resolution. Substantially all of the City's employees become eligible for those benefits if they reach normal retirement age while working for the City. Those, and similar benefits for active employees, are provided through PERS whose premiums are based on the benefits paid during the year. The City has established a single-employer OPEB trust to accumulate assets to assist with the payment of future benefits under the OPEB Plan. The OPEB Trust is reported as a fiduciary fund of the City. A separate stand-alone financial report is not issued for this OPEB plan.
Retiree health care coverage is segregated into three tiers as follows:
Tier 1 - Employees Hired Before January 1, 2006 (1)
• Employee age 50 or over with 5 years of PERS service receive up to $885 per month.
Tier 2 - Employees Hired On or After January 1, 2006 (1) and prior to April 7, 2010 • Employees with less than 5 years of service with Signal Hill, but who are vested with PERS are eligible to receive the minimum monthly premium mandated by PERS (currently $149 monthly).
• Employees with 5-10 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 50% of the monthly benefit applicable towards the employee only.
• Employees with 11-15 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 75% of the monthly benefit applicable towards the employee only.
(70)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) A. Plan Description (Continued)
Tier 2 - Employees Hired On or After January 1, 2006 (1) and prior to April 7, 2010 (Continued)
• Employees with over 16 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 100% of the monthly benefit applicable towards the employee and one dependent provided that employee plus one dependent coverage was in effect upon the date of retirement. (1) Applies to police employees hired after January 1, 2004.
Tier 3 - Employees Hired On or After April 7, 2010
• Employees with less than 11 years of service with Signal Hill, but who are vested with PERS are eligible to receive the minimum monthly premium mandated by PERS (currently $149 monthly).
• Employees with 11-15 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 25% of the monthly benefit applicable towards the employee only.
• Employees with 16-19 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 50% of the monthly benefit applicable towards the employee and one dependent provided that employee plus one dependent coverage was in effect upon the date of retirement. • Employees with over 20 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 75% of the monthly benefit applicable towards the employee and one dependent provided that employee plus one dependent coverage was in effect upon the date of retirement.
B. Eligibility
Employees of the City are eligible for retiree health benefits if they are at least 50 years of age for classic members and at least 52 years of age for PEPRA members as of the last day of work prior to retirement and are a vested member of CaPERS. Membership in the plan consisted of the following, for the measurement period ended June 30, 2022:
Inactive Employees or Beneficiaries Currently
Receiving Benefit Payments 95
Inactive Employees Entitled to but not yet Receiving
Benefit Payments 3
Active Plan Members 93
Total 191
(71)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) C. Annual OPEB Cost and Net OPEB Liability
The obligation of the City and City employees to contribute to the plan is established and may be amended by the City Council. Contributions are not determined actuarially. For Non-POA (Police Officers Association Union) fulltime employees, including all directors and managers in the City, the City contributes 1% of gross wages to the OPEB trust. For Safety employees, who are not in a management position, the City contributes a flat $675 per calendar year to the trust. Non-POA employees contribute 1% of gross wages to the OPEB trust. POA employees contribute a flat $625 per calendar year to the OPEB trust Employee contributions are not portable should an employee leave City employment. For the fiscal year ended June 30, 2022, the measurement period, the City contributed $872,192 (retirement premiums paid on a pay-as-you-go basis of $676,552, contributions to the OPEB trust of $71,568, an estimated implicit rate subsidy of $121,878, less nontrust administrative expenses of $2,194) and City employees contributed $70,110 to the OPEB trust.
D. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 using standard update procedures.
Actuarial Assumptions
For the measurement period ended June 30, 2022 (the measurement date), the total OPEB liability was determined by an actuarial accounting valuation performed as of June 30, 2021, rolled forward to June 30, 2022 using standard update procedures. The June 30, 2022 total OPEB liability was based on the following actuarial methods and assumptions:
Inflation 2.50%
Salary Increase 2.75%
Investment Rate of Return 5.50%
Healthcare Cost Trend Rates Assumed 4% per year. The long-term trend assumption is based on the conclusion that, while medical trend will continue to be cyclical, the average increase over time cannot continue to outstrip general inflation by a wide margin. Trend increases in excess of general inflation result in dramatic increases in unemployment, the number of uninsured and the number of underinsured. These effects are nearing a tipping point which will inevitably result in fundamental changes in health care finance and/or delivery which will bring increases in health care costs more close in line with general inflation.
The actuary does not believe it is reasonable to project historical trend vs. inflation difference several decades into the future.
The mortality assumptions are based on tables created by CaPERS. CaPERS periodically study mortality for participating agencies and establish mortality tables that are modified versions of commonly used tables. The most recent studies were conducted in 2019.
(72)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) D. Net OPEB Liability (Continued)
Changes in Assumptions
For the measurement period ended June 30, 2022, the changes in assumptions were made related to a decrease in the investment rate of return from 5.75% to 5.50%.
The long-term expected rate of return on OPEB plan investments was determined using seated real mir at is The one a comic reace to one.
term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Long-Term
Expected
Target Real Rate
Asset Class Allocation of Return
Equities 33.0 % 4.29 %
International Equity 17.0% 4.67%
Fixed Income 50.0 % 0.78
Total 100.0 %
Discount Rate
The discount rate used to measure the total OPEB liability was 5.50%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees.
Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. (73)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) E. Change in the Net OPEB Liability
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2021 $ 14,352,284 3,633,800 $ 10,718,484 Changes in the Fiscal Year:
Service Cost 293,500 293,500
Interest on the Total OPEB Liability 819,177 : 819,177
Changes of Assumptions (494,340) (494,340)
Difference Between Expected and
Actual Experience (1,239,101) (1,239,101)
Contribution from the Employer 872,192 (872,192)
Contribution from the Employees : 70,110 (70,110)
Net Investment Income (496,520) 496,520
Benefit Payments (798,430) (798,430) -
Administrative Expenses (4,495) 4,495
Net Changes (1,419,194) (357,143) (1,062,051)
Balance at June 30, 2022 $ 12,933,090 3,276,657 9,656,433 There is sensitivity of the net OPEB liability due to changes in the discount rate and health-care cost trend rates. The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1 percentage- point higher than the current discount rate:
Current
1% Decrease Discount Rate 1% Increase
4.75% 5.75% 6.75%
Net OPEB Liability $ 11,151,212 9,656,433 8,402,827
Health-Care
Cost
1% Decrease Trend Rate 1% Increase
4.00% 5.00%
Net OPEB Liability 8,991,943 $ 9,656,433 10,266,882
(74)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences Between Expected and Actual Experience 116,033 $ (1,321,932) Changes of Assumptions 2,360,451 (418,288)
Eariters on Plan invest Periscted and Actual
271,871
2,748,355 (1,740,220)
Amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:
Year Ending June 30, Amount
2023 $ 88,536
2024 90,098
2025 96,757
2026 204,766
2027 120,437
Thereafter 407,541
Total 1,008,135
NOTE 11 DEFINED CONTRIBUTION PLANS
The following defined contribution plans were discontinued on April 30, 2016 and have not been replaced. City Council has the authority for establishing and amending the provisions of both these plans.
Effective July 3, 1999, the City began providing pension benefits for all of its part-time, seasonal and temporary employees that are not covered under PERS through the City of Signal Hill Alternate Retirement System Plan administered by the Public Agency Retirement System (PARS ARS). PARS ARS is a defined contribution pension plan and benefits depend solely on amounts contributed to the plan plus investment earnings.
On May 15, 2001, the City Council authorized establishment of a 401(a) Deferred Contribution Plans for its management and middle management employees. The Plan is a qualified defined contribution plan under Section 401(a) of the Internal Revenue Code.
No contributions were made to these plans during the current fiscal year. (75)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 12 DEFERRED COMPENSATION
The City has made available to its employees a deferred compensation plan, created in accordance with Internal Revenue Code Section 457, whereby employees authorize the City to defer a portion of their salary to be deposited in individual investment accounts. Funds may be withdrawn by participants upon termination of employment or retirement. The City contributes on a 50% matching basis up to 4% of management's compensation and up t 3% of middle management's compensation. Total matching contributions made by the Cit totaled $58,239 for the fiscal year ended June 30, 2022.
Amounts withheld by the City under this plan are deposited regularly with the Voya Financial for investment. Pursuant to changes in Internal Revenue Code Section 457, the City formally established a plan level trust in which all assets and income of the 457 plan were placed. The assets, all property and rights purchased with such amount, and all income attributable to such amounts, property, or rights are held in trust for the exclusive benefit of the participants and their beneficiaries. These assets are not the property of the City, and as such, are not subject to the claims of the City's general creditors. The City had minimal involvement in the administration of the 457 plan, and therefore, the plan assets and liabilities are not reported in the City's financial statements. (76)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 13 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The various fund balance classifications as of June 30, 2022 were as follows:
Housing Capital Capital
Authority Grants Improvement
Special Special Capital Other
Revenue Revenue Projects Governmental
General Fund Fund Fund Funds
Nonspendable:
Prepaid Items $ 63,292 - $ - $ - $ -
Leases Receivable, Net of
Unavailable Revenues 521,389 : :
Advances to Other Funds 2,122,274 : :
Land and Improvements
Held for Resale, Net 425,001
Total 3,131,956
Restricted for:
Low and Moderate
Income Housing 6,043,296 :
Public Protection 203,780
Development - 3,115,212
Transportation 4,877,771
Capital Improvements 400,002 2,474,244
Housing
Total 6,043,296 400,002 10,671,007
Committed for:
Debt service 8,241,122
Economic Uncertainty 4,450,383
Building and Land Acquisition 2,129,448
Equipment Replacement 522,376
Capital Improvements 2,284,257
Insurance Premium Increases 828,372
CaPERS Rate Increases 3,237,225
OPEB Future Costs 1,521,444
Park Expansion 741,121
Police Radio Reserve 1,017,749
Police - General Reserve 66,336 :
Library Expansion 3,674,321
100th Anniversary
General Plan 335,000
Economic Development 1,208,150 :
NDES Issues 1,456
Total 30,348,779
Unassigned 23,102,299 (1,457,726) (302,886)
Total $56,583,034 6.043,296 $ (1,457.726) $ 400,002 10.368,121 (77)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 14 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (JPIA or Authority. The Authority is composed of 124 Calitornia public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors (the Board). The Board operates through a nine-member Executive Committee.
B. Primary Self-insurance Programs of the Insurance Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012- 13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool.
Primary Liability Program
Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers.
The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/.
Workers' Compensation
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula.
(78)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 14 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (CONTINUED) B. Primary Self-insurance Programs of the Insurance Authority (Continued) Workers' Compensation (Continued)
(2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers.
For 2021-22 the Authority's pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's Liability losses from C. Purchased Insurance
Pollution Legal Liability Insurance
The City participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million.
Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $88,277,444. There is a $10,000 deductible per occurrence except for nonemergency vehicle insurance which has a $2,500 deductible.
Earthquake and Flood Insurance
The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Insurance Authority. The City's property currently has earthquake protection in the amount of $50,917,834. There is a deductible of 5% per unit of value with a minimum deductible of $100,000.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Insurance Authority.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2021-22. (79)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 15 OTHER INFORMATION
Contingent Liabilities
Litigation
Claims and suits are filed against the City in the normal course of business. Based upon information received from the City's management, the estimated liability under any suc claims would be adequately covered by deposits in a pooled insurance authority anc insurance coverage. Other claims not covered by insurance involving substantial land use actions and inverse condemnation claims are not expected to have an adverse economic effect on the City.
Grant Audit Contingencies
Under the terms of certain grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial.
Developer Impact Fees
The City charges Parks Development, Traffic Impact, and Water Development Impact Fees (fees) when new residential or commercial buildings are constructed. In Fiscal Year 2021-22, the City collected Parks Development fees, Traffic impact fees, and Water Development fees, respectively. The fees are deposited into corresponding special revenue funds, and they are used to acquire and upgrade parks, improve water systems related to new development, and to reduce traffic within the City related to new development. The state of California requires fees to be spent within five years of collection. In Fiscal Year 2021-22, the City expended $1,054,395 in Parks Development fees, $34,498 in Traffic Impact fees and $597,327 in Water Development fees. At June 30, 2022, the fund balances for the Parks Development Impact Fund was $1,223,915, for the Water Development Impact Fund was $238,408, and for the Traffic Impact Fund was $911,292.
NOTE 16 TAX ABATEMENTS
In accordance with Chapter 3.32 of the Signal Hill Municipal Code, the City provides sales tax rebates to a local sales tax generator based on sales tax generated at a site developed within the City of Signal Hill. The City entered into an economic development agreement for sales tax rebates with a local sales tax generator in order to retain one of the City's significant tax-generating business, jobs, and occupancy of land within City boundaries. The rebates are calculated based on the total taxes generated by the business.
For the fiscal year ended June 30, 2022, the City abated local sales tax totaling $2,831,552. (80)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17 SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the former Redevelopment Agency were transferred to the Successor Agency to the City of Signal Hill Redevelopment Agency on February 1, 2012 as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities. Disclosures related to the capital assets and long-term liabilities reported in the Successor Agency to the Signal Hill Redevelopment Agency Private Purpose Trust Fund are as follows:
Capital Assets
Capital asset activity for the year ended June 30, 2022 was as follows:
Balance at
July 1, 2021, Balance at
Restated Additions Deletions June 30, 2022
Capital Assets, Not
Being Depreciated:
Land $ 10,956,485 $ - $ $ 10,956,485
The prei year See Note as restated by 2,050.000 for land that was inadvertently removed Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2022 was as follows:
Balance at Balance at Due Within
July 1, 2021 Additions Deletions June 30, 2022 One Year Other Debt:
Bonds Payable
2006 TABS $ 10,595,000 $ - $ (310,000) $ 10,285,000 $ 325,000 2011 Tax Allocation Parity Bonds 4,310,000 (670,000) 3,640,000 710,000 2015 Refunding TABs Series A 6,985,000 (2,220,000) 4,765,000 2,330,000 2015 Refunding TABs Series B 1,335,000 : (105,000) 1,230,000 110,000 2017 Refunding TABs 15,565,000 (2,480,000) 13,085,000 2,610,000 Less Original Issuance Discounts (70,577) 14,494 (56,083) Add Premium on Bonds 2,209,234 (594,710) 1,614,524
Total Bonds Payable 40,928,657 (6,365,216) 34,563,441 6,085,000 Direct Borrowings:
Loan Payable to the City of
Signal Hill 11,762,606 241.646 (1,224,667) 10,779,585
Total Long-Term Liabilities $ 52,691,263 $ 241.646 $ (7.589,883) 45,343.026 6.085,000 (81)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Long-Term Liabilities (Continued)
A. 2006 Tax Allocation Bonds
On September 7, 2006, the Agency issued the 2006 Taxable Tax Allocation Parity Bonds, Series A (2006 Bonds) in the amount of $13,500,000. Proceeds of the 2006 Taxable Tax Allocation Parity Bonds were used to (i) finance redevelopment activities of the Agency within or of benefit to the Redevelopment Project, (ii) satisfy the Reserve Requirement for the Bonds and (iii) provide for the cost of issuing the Bonds. $1,845,000 of 2006 term bonds matured October 1, 2016 and bore interest payable semiannually at a rate of 5.581%. $11,660,000 of 2006 D term bonds mature October 1, 2026 and bear interest payable semiannually at a rate of 5.839%. The 2006 Bonds are subject to mandatory redemption without premium commencing October 1, 2007 with respect to the term bonds maturing October 1, 2016 and October 1, 2017 with respect to the term bonds maturing October 1, 2026.
The reserve requirement for these bonds is covered by a surety bond provided by National Public Finance Guarantee Corp. (National). National's current ratings by Moody's Investors Services and Standard & Poor's are Baa2 and BBB, respectively.
The annual requirements to amortize outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30 Principal Interest Total
2023 $ 325,000 $ 591,052 $ 916,052
2024 350,000 571,346 921,346
2025 3,025,000 472,813 3,497,813
2026 3,195,000 291,220 3,486,220
2027 3,390,000 98,971 3,488,971
Totals $ 10,285,000 $ 2,025,402 $ 12,310,402
B. 2011 Tax Allocation Parity Bonds
On March 25, 2011, the Agency issued the 2011 Tax Allocation Parity Bonds in the amount of $8,835,000. The proceeds were used to (i) finance redevelopment activities of benefit to the Redevelopment Project, (ii) fund the reserve requirement for the Bonds and (iii) provide for the costs of issuing the Bonds. The 2011 Bonds were issued at a discount of $181,895. This discount is being amortized on a straight line basis as interest expense through the year 2027.
Principal amounts on the 2011 Tax Allocation Parity Bonds mature annually each October 1 from 2012 through 2026, and bear interest semiannually beginning October 1, 2011 at rates ranging from 3.25% to 7.0%. The 2011 Tax Allocation Parity Bonds maturing on or after October 1, 2021 are subject to optional redemption, without premium commencing April 1, 2021.
(82)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Long-Term Liabilities (Continued)
B. 2011 Tax Allocation Parity Bonds (Continued)
The Successor Agency to the City of Signal Hill Redevelopment Agency is required by the 2011 Tax Allocation Parity Bonds reserve requirement to maintain reserve funds of the lessor of (1) 125% average annual debt service, (2) maximum annual debt service and (3) 10% original proceeds. As of the fiscal year ended June 30, 2022, this reserve requirement was met.
The annual requirements to amortize outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2023 $ 710,000 $ 229,951 $ 939,951
2024 760,000 178,500 938,500
2025 675,000 128,275 803,275
2026 725,000 79,275 804,275
2027 770,000 26,950 796,950
Totals $ 3,640,000 $ 642,951 $ 4,282,951
C. 2015 Refunding Tax Allocation Bonds - Series A
On January 26, 2015, the Agency issued the 2015 Tax Allocation Refunding Bonds, Series A (2015 A Bonds) in the amount of $19,990,000. The proceeds were used to (i) refinance the Agency's outstanding 2001 Bonds, 2003 A Bonds, and 2003 C Bonds in the amount of $22,245,000, (ii) fund the reserve requirement for the Bonds and (ili) provide for the costs of issuing the Bonds. The 2015 A Bonds were issued at a oremium of $2,624,882. This premium is being amortized on a straight line basis as interest expense through the year 2024.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $644,557. This difference, reported as a deferred outflow of resources, is being amortized on a straight-line basis as interest expense on the statement of changes in fiduciary net position through the year 2024.
Principal amounts on the 2015 A Bonds mature annually each October 1 from 2015 through 2024, and bear interest semiannually beginning October 1, 2015 at rates ranging from 2.00% to 5.00%. The 2015 A Bonds are not subject to optional redemption before maturity. The reserve requirement for these bonds is covered by a surety bond provided by National Public Finance Guarantee Corp. (National). National's current ratings by Moody's Investors Services and Standard & Poor's are Baa2 and BBB, respectively.
(83)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Long-Term Liabilities (Continued)
C. 2015 Refunding Tax Allocation Bonds - Series A (Continued) The annual requirements to amortize outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2023 2,330,000 $ 180,000 2,510,000
2024 2,435,000 60,875 2,495,875
Totals 4,765,000 240,875 5,005,875
D. 2015 Refunding Tax Allocation Bonds - Series B
On January 26, 2015, the Agency issued the 2015 Tax Allocation Refunding Bonds, Series B (2015 B Bonds) in the amount of $1,970,000. The proceeds were used to (i) refinance the Agency's outstanding 2003 D Bonds in the amount of $1,980,000, (ii) fund the reserve requirement for the Bonds and (iii) provide for the costs of issuing the Bonds. The 2015 B Bonds were issued at a discount of $26,551. This discount is being amortized on a straight line basis as interest expense through the year 2024.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $51,426. This difference, reported as a deferred outflow of resources, is being amortized on a straight-line basis as interest expense on the statement of changes in fiduciary net position through the year 2024.
Principal amounts on the 2015 B Bonds mature annually each October 1 from 2015 through 2024, and bear interest semiannually beginning October 1, 2015 at rates ranging from 1 1.00% to 3.125%. The 2015 B Bonds are not subject to optional redemption before maturity.
The reserve requirement for these bonds is covered by a surety bond provided by National Public Finance Guarantee Corp. (National). National's current ratings by Moody's Investors Services and Standard & Poor's are Baa2 and BBB, respectively.
The annual requirements to amortize outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2023 110,000 $ 36,375 $ 146,375
2024 110,000 33,213 143,213
2025 1,010,000 15,781 1,025,781
Totals 1,230,000 $ 85,369 1,315,369
(84)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Long-Term Liabilities (Continued)
E. 2017 Refunding Tax Allocation Bonds
On December 1, 2017, the Agency issued the 2017 Tax Allocation Refunding Bonds (2017 Bonds) in the amount of $22,580,000. The proceeds were used to (i) refinance the Agency's outstanding 2007 Refunding Tax Allocation Bonds in the amount of $10,970,000, and the Agency's outstanding 2009 Tax Allocation Parity Bonds in the amount of $14,670,000 (il) fund the reserve requirement for the Bonds and (iii) provide for the costs of issuing the Bonds. The 2017 Bonds were issued at a premium of $2,564,999. This premium is being amortized on a straight line basis as interest expense through the year 2026.
The advance refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $1,196,102. This difference, reported as a deferred outflow of resources, is being amortized on a straight-line basis as interest expense on the statement of changes in fiduciary net position through the year 2026.
Principal amounts on the 2017 Bonds mature annually each October 1 from 2018 through 2026, and bear interest semiannually beginning April 1, 2018 at rates ranging from 3.00% to 5.00%. The 2017 Bonds are not subject to optional redemption before maturity.
The reserve requirement for these bonds is covered by a surety bond provided by National Public Finance Guarantee Corp. (National). National's current ratings by Moody's Investors Services and Standard & Poor's are Baa2 and BBB, respectively.
The annual requirements to amortize outstanding bond indebtedness as of June 30, 2022, including interest, are as follows:
Year Ending June 30, Principal Interest Total
2023 $ 2,610,000 $ 536,600 $ 3,146,600
2024 2,745,000 402,725 3,147,725
2025 1,920,000 305,300 2,225,300
2026 2,840,000 212,500 3,052,500
2027 2,970,000 74,250 3,044,250
Totals $ 13,085,000 $ 1,531,375 $ 14,616,375
F. Loan Payable to the City of Signal Hill
In 2008, the City had an advance to the Agency totaling $10,000,000 to assist in funding the Agency's operating budget. The former Redevelopment Agency had been accruing interest on the original advances at a rate of 10% per annum up to the date of its dissolution.
During the fiscal year ended June 30, 2018, the DOF approved the advance from the City as an enforceable obligation of the Successor Agency based on an accrued interes rate of 3% per annum since inception. The balance as of June 30, 2022, including $3,949,396 of accrued interest, is $10,779,585.
(85)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 17 SUCCESSOR AGENCY DISCLOSURES (CONTINUED)
Long-Term Liabilities (Continued)
G. Spring Street Corridor Joint Powers Authority
The City and former Agency entered into a joint powers agreement with the City of Long each and the former Long Beach Redevelopment Agency on January 11, 1995. The urpose of this agreement was to create a joint power authority (Authority) pursuant t the California Government Code in order to develop and operate public facilities and improvements in the Spring Street Corridor Area.
The Authority is governed by a Board of Directors which is made up of the five members of the Signal Hill City Council, the four members of the Long Beach City Council, and the Chairman of the Successor Agency to the Long Beach Redevelopment Agency. Officers of the Authority are elected annually by the Board members.
On December 21, 1995, the joint powers agreement was amended to increase its jurisdiction by including additional areas surrounding the original Spring Street Corridor Area. The operating expenses are charged to the members on the basis of their pro rata share of land in the Corridor. Financial statements can be obtained from the City of Signal Hill's Finance Department located at City Hall.
H. Owner Participation and Implementation Agreement (OPIA) Pursuant to an Owner Participation and Implementation Agreement (OPIA) dated September 19, 1996, the Agency is required to pay a developer a formulated amount based on sales tax generated at a site developed within the City of Signal Hill. The source of these payments is to be provided by the Signal Hill Successor Agency. The first source is available tax increment revenue which is limited based on the amount of the Signal Hill Successor Agency's annual tax increment revenue less amounts required by law to be deposited in the Signal Hill Successor Agency's Affordable Housing Special Revenue Fund. The second source is a loan from the City of Signal Hill which would be made from the City's share of sales tax revenue generated from the developed site. No other sources of funds are available for payments. At June 30, 2022, there was $1,415,234 due under this agreement, which is reported as a current liability. (86)
CITY OF SIGNAL HILL
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 18 RESTATEMENT OF NET POSITION
Beginning net position (deficit) was restated as follows:
Successor
Agency to the
Signal Hill
Redevelopment
Agency
Private-Purpose
Trust Fund
Net Deficit as Previously Reported
as of June 30, 2021 $(34,327,940)
Increase for Land Owned by Successor Agency
That Was Not Included in Account Balance 2,050,000
Net Deficit as Restated July 1, 2021 $(32,277,940)
(87)
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(88)
REQUIRED SUPPLEMENTARY INFORMATION
(89)
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(90)
CITY OF SIGNAL HILL
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Property Taxes $ 2,163,484 $ 2,163,484 $ 2,339,173 $ 175,689 Sales and Use Tax 20,581,740 20,581,740 24,786,099 4,204,359 Other Taxes 1,495,157 1,495, 157 1,769,494 274,337
Licenses and Permits 550,307 550,307 763,306 212,999
Intergovernmental Revenues 43,250 96,250 98,225 1,975
Charges for Services 961,150 961,150 1,567,725 606,575
Fines and Forfeitures 180,000 180,000 144,205 (35,795)
Investment Income 1,113,130 1,003,130 562,380 (440,750) 222,545 222,545 511,927 289,382
- 27,310,763 5,288,771
Total Revenues 27,253,763 32,542,534
EXPENDITURES
General Government:
City Council 258,986 267,799 224,107 43,692
City Treasurer 8,290 8,290 5,402 2,888
City Clerk 173,851 173,851 159,878 13,973
Economic Development 861,375 961,375 276,429 684,946
Executive Administration 1,133,374 1,142,342 1,000,678 141,664 Program Administration 247,954 247,954 234,320 13,634
Personnel Services 457,512 564,188 452,071 112,117
Support Services 2,451,317 2,407,317 2,159,189 248,128
Management Information Services 270,398 265,495 208,055 57,440 Fiscal Services 895,989 937,038 870,839 66,199
Total General Government 6,759,046 6,975,649 5,590,968 1,384,681 Community Services:
Library Programs and Services 580,739 587,361 556,708 30,653 Community Support and Services 1,014,581 1,013,121 862,022 151,099 Recreation 635,324 643,929 599,811 44,118
Total Community Services 2,230,644 2,244,411 2,018,541 225,870 Police:
Community Outreach 45,859 45,859 29,810 16,049
Patrol Services 5,958,373 6,083,373 5,679,399 403,974
Investigative Services 1,329,797 1,329,797 1,196,596 133,201 Police Support Services 2,345,894 2,353,894 1,904,140 449,754 Communications 975,001 975,001 792,613 182,388
Records 448,033 449,453 408,978 40,475
Emergency and Disaster Services 66,690 67.948 14,556 53,392 Total Police 11,169,647 11,305,325 10,026,092 1,279,233 (Continued)
See accompanying Notes to the Required Supplementary Information. (91)
CITY OF SIGNAL HILL
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND (CONTINUED)
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
EXPENDITURES (CONTINUED)
Community Development:
$ 507,838 $ 676,726 $ 635,425 $ 41,301
229,429 228,497 134,834 93,663
313,473 312,654 277,712 34,942
154,838 154,638 126,188 28,450
1,205,578 1,372,515 1,174,159 198,356
Public Works:
Engineering and Project Services 1,059,702 1,084,702 676,693 408,009 Building Maintenance 955,293 969,689 959,112 10,577
Environmental Programs 770,074 770,074 521,602 248,472
Park Maintenance 1,069,878 1,149,878 1,028,964 120,914
Street Maintenance Operations 1,701,884 1,727,884 1,364,007 363,877 Total Public Works 5,556,831 5,702,227 4,550,378 1,151,849 Capital Outlay 300,000 970,854 688,987 281,867
Debt Service 357,600 357,600 850,595 (492,995)
Total Expenditures 27,579,346 28,928,581 24,899,720 4,028,861
EXCESS OF REVENUES
OVER EXPENDITURES (268,583) (1,674,818) 7,642,814 9,317,632
OTHER FINANCING SOURCES (USES)
Transfers In 543,585 1,508,042 1,258,477 (249,565)
Transfers Out (528,671) (530,139) (344,458) 185,681
Total Other Financing
Sources (Uses) 14,914 977,903 914,019 (63,884)
NET CHANGE IN FUND BALANCE (253,669) (696,915) 8,556,833 9,253,748 Fund Balance - Beginning of Year 48,026,201 48,026,201 48,026,201 FUND BALANCE - END OF YEAR $ 47,772,532 $ 47,329,286 $ 56,583,034 $ 9,253,748 See accompanying Notes to the Required Supplementary Information. (92)
CITY OF SIGNAL HILL
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss) 22,000 $ 22,000 $ (69,374) $ (91,374)
EXPENDITURES
Community Development 7,000 7,000 4,180 2,820
EXCESS OF REVENUES
OVER EXPENDITURES 15,000 15,000 (73,554) (88,554)
OTHER FINANCING SOURCES (USES)
Transfers In 215,000 215,000 244,933 29,933
NET CHANGE IN FUND BALANCE 230,000 230,000 171,379 (58,621) Fund Balance - Beginning of Year 5,871,917 5,871,917 5,871,917 = FUND BALANCE - END OF YEAR $ 6,101,917 $ 6,101,917 6,043,296 $ (58,621) See accompanying Notes to the Required Supplementary Information. (93)
CITY OF SIGNAL HILL
BUDGETARY COMPARISON SCHEDULE
CAPITAL GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 2,564,160 $ 3,254,330 $ 985,803 $ (2,268,527)
OTHER FINANCING SOURCES
Transfers In 4,153 4,153
Transfers Out (2,564,160) (3,254,330) (2,411,103) 843,227 Total Other
Financing Uses (2,564, 160) (3,254,330) (2,406,950) 847,380 NET CHANGE IN FUND BALANCE (1,421,147) (1,421,147)
Fund Balance - Beginning of Year (36,579) (36,579) (36,579) FUND BALANCE - END OF YEAR $ (36,579) $ (36,579) $ (1,457,726) $ (1,421,147) See accompanying Notes to the Required Supplementary Information. (94)
CITY OF SIGNAL HILL
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1) The annual budget is adopted by the City Council after a public hearing and provides for the ghe melans of tina oring in. The operating budget includes proposed expendiures 2) Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the Unite States of America. Accordingly, actual revenues and expenditures can be compared witt without any significant reconciling items. No budgetary comparisons are presented for the Capital Projects Funds since budgets are adopted on a project basis as opposed to an annual basis. No budgets were adopted for the Assets Seizure, Los Angeles Impact, and the Civic Center Phase II special revenue funds for the current fiscal year.
3) Budget control is maintained over all accounts, and expenditures are not allowed to exceed appropriations at the program level (i.e. City Council, City Treasurer, City Attorney), except as approved in advance by the City Council. 4) Encumbrance accounting under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation is employed as an extension of formal budgetary integration in the Governmental Fund Types. However, at year-end all appropriations lapse.
Accordingly, encumbrances are canceled and generally re-appropriated as part of the following year's budget. Encumbrances are not included in reported expenditures. 5) The City Council approves all significant budgetary changes. 6) Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, or returned to the taxpayers through revised tax rates or revised fee schedules. Or an excess in one year may be offset against a deficit in following year. For the fiscal year ended June 30, 2021, based on calculations by City management, proceeds of taxes did not exceed appropriations. (95)
CITY OF SIGNAL HILL
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN FISCAL YEARS*
Miscellaneous Plan
Fiscal Year Ended June 30,2022 June 30,2021 June 30.2020 June 30,2019, June 30,2018 June 30,2017, June 30,2016 June 30. 2015.
Measurement Period June 30, 2021 June 30,2020 June 30,2019 June 30, 2018 June 30,2017 June 30,2016 June 30, 2015 June 30, 2014 Plan's Proportion of the Net Pension Liability 0.41623% 0.33135% 0.32748% 0.32748% 0.32027% 0.31694% 0.12534% 0.13408% Plan's Proportionate Share of the Net Pension
Liability § 7,903,332 $ 13,976,419 $ 13,113,924 $ 12,213,091 $ 12,625,288 $ 11.009,993 $ 8,603,439 $ 8,343,258 Plan's Covered Payroll $ 4,799,168 $ 4,955,620 $ 4,924,328 $ 4,746,775 $ 4,782,533 $ 4,769,466 $ 4,171,972 $ 4,623,297 164.68% 282.03% 266.31% 257.29% 263.99% 230.84% 206.22% 180.46% Plan's Proportionate Share of the Fiduciary Net 86.12% 74.36% 75.26% 75.26% 73.31% 75.87% 79.72% 79.79% Position as a Percentage of the Plan's Tota
Pension Liability
Plan's Proportionate Share of Aggregate
Employer Contributions 1,928,023 $ 1.810,932 $ 1,621,472$ 1,452,707$ 1,377,053$ 1,233,606 $ 1,169,609 890,524 Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7,50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.
From fiscal year June 30, 2018 to June 30, 2019:
In 2018, demographic assumptions and inflation rate were changed in accordance to the CaPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
From fiscal year June 30, 2019 to June 30, 2020:
In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.
From fiscal year June 30, 2020 to June 30, 2021:
There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022:
There were no changes in assumptions.
*Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. (96)
CITY OF SIGNAL HILL
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
Miscellaneous Plan
Fiscal Year Ended June 30. 2022 June 30. 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30.2017 June 30.2016 June 30, 2015 Contractually Required Contribution
(Actuarially Determined) 1,482,465 $ 1,284,614 $ 1,442,517 $ 1,268,784 $ 1,095,591 $ 1,001,003 $ 913,915 $ 673,607 Contains Contion to no curaly (1.482,465) (1,284.614) - (1.442,517) (1.268,784) (1.095,591) (1,001.003) (913,915) (673,607) Contribution Deficiency (Excess) $ $ $ •||| $
Covered Payroll 5,200,981 4,799,168 4,955,620 $ 4,924,328 $ 4,746,775 4,782,533 4,769,466 $ 4,171,972 Contributions as a Percentage of
Covered Payroll 28.50% 26.77% 29.11% 25.77% 23.08% 20.93% 19.16% 16.15% Notes to Schedule:
Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used
to Determine
Contribution Rates:
Actuarial Cost Method Entryse Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1) (1) (1) (1) (1) (1) (1)
Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method
Inflation 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) (2) (2) (2)
Investment Rate of Return 7.150% (3) 7.150% (3) 7.150% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) (4) (4) (4)
Mortality (5) (5) (5) (5) (5) (5) (5) (5)
(1) Level percentage of payroll, dosed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, induding inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62* (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CaPERS Board. * Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. (97)
CITY OF SIGNAL HILL
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN FISCAL YEARS*
Safety Plan
Fiscal Year Ended June 30.2022 June 30,2021 June 30.2020 June 30.2019 June 30.2018 June 30.2017 June 30.2016 June 30.2015 Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Plan's Proportion of the Net Pension Liability 0.32940% 0.26785% 0.26113% 0.26514% 0.26478% 0.27528% 0.16949% 0.16671% Plan's Proportionate Share of the Net Pension
Liability $ 11,560.225 $ 17,844,795 $ 16.301.080 $ 15,557,284 $ 15,821,202 $ 14,257,433 $ 11.633,599 $ 10.373,619 Plan's Covered Payroll $ 3,480,836 3.107,054 § 3.319.213 § 2,752,971 § 3.397,367 § 3,120,311 § 3.095,462 $ 3.002,188 332.11% 523.76% 491,11% 565.11% 465,69% 456.92% 375.83% 345,54% Plan's Proportionate Share of the Fiduciary Net 81,71% 71,00% 75,26% 75,26% 73.31% 72.69% 75.88% 77,88% Position as a Percentage of the Plan's Total
Pension Liability
Plan's Proportionate Share of Aggregate
Employer Contributions $ 2,759,489 $ 2,261,312 1,880,463 $ 1,740,418 $ 1,330,746 $ 1,243,621 $ 1,244,854 $ 1,034,283 Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
From fiscal year June 30, 2015 to June 30, 2016:
GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense.
From fiscal year June 30, 2016 to June 30, 2017:
There were no changes in assumptions.
From fiscal year June 30, 2017 to June 30, 2018:
In fiscal year 2017-2018, the financial reporting discount rate was reduced from 7.65% to 7.15%. Deferred outflows of resources and deferred inflows of resources for changes of assumptions represent the unamortized portion of this assumption change and the unamortized portion of the changes of assumptions related to prior measurement periods.
From fiscal year June 30, 2018 to June 30, 2019:
In 2018, demographic assumptions and inflation rate were changed in accordance to the CaPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate.
From fiscal year June 30, 2019 to June 30, 2020:
In fiscal year 2019-2020, the financial reporting discount rate was reduced from 7.375% to 7.150%. The inflation rate was reduced from 2.75% to 2.50% in fiscal year 2019-2020.
From fiscal year June 30, 2020 to June 30, 2021:
There were no changes in assumptions.
From fiscal year June 30, 2021 to June 30, 2022:
There were no changes in assumptions.
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. (98)
CITY OF SIGNAL HILL
SCHEDULE OF CONTRIBUTIONS
LAST TEN FISCAL YEARS*
Safety Plan
Fiscal Year Ended June 30.2022 June 30,2021 June 30, 2020 June 30,2019 June 30.2018 June 30.2017 June 30.2016 June 30. 2015 Contractually Required Contribution
(Actuarially Determined) $ 1,932,188 $ $ 1,614,253 $ 1,372,345 $ 1,677,943 $ 1,531,100 $ 1,407,461 $ 1,197,783 Contributions in Relation to the Actuarially
Determined Contributions
Contribution Deficiency (Excess) $
Covered Payroll $ 3,694,088 $ 3,480,836 $ 3,407.054 $ 3.319,213 $ 2,752,971 § 3,397,367 $ 3,120,311 $ 3,095,462 Contributions as a Percentage of
Covered Payroll 52.30% 50.39% 47.38% 41,35% 60.95% 45.07% 45.11% 38.69% Notes to Schedule:
Valuation Date 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Methods and Assumptions Used
to Determine
Contribution Rates:
Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Amortization Method (1.00) (1.00) (1) (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value Fair Value 15 Year Smoothed
Market Method
Inflation 2.50% 2.75% 2.75% 2.75% 2.75%
Salary Increases (2) (2) 12)
Investment Rate of Retur 7.150% (3) 7.150% (3) 7.150% (3) 7.375% 3) 7.50% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4)
Mortality (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 for all plans with the exception of 52 for Miscellaneous PEPRA 2% @62" (5) Mortaliy assumptions are based on mortality rates resulting from the most recent CaPERS Experience Study adopted by the CaPERS Board. *Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. (99)
CITY OF SIGNAL HILL
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS*
Fiscal Year End 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Total OPEB Liabilty:
Service Cost $ 293,500 $ 270,003 78,454 76,354 $ 88,947 86,566 $ 84,249 Interest on Total OPEB Liability 819,177 814,641 693,993 689,655 724,953 719,524 732,333 Changes of Assumptions (494,340) 350,078 3,078,833
(1,239,101) 171,290 (633,287) :
5,035 (5,035)
Benefit Payments, Including Refunds
and the Implied Subsidy Benefit Payments (798.430) (1.049,577) (1.040.518) (705,652) (729,067) (718,446) (697.696) Net Change in Total OPEB Liability (1,419,194) 385,145 2,982,052 65,392 (553,489) 87,644 118,886 Total OPE Liability - Beginning of Year 14,352,284 13,967,139 10.985.087 10,919,695 11.473,184 11,385,540 11,266,654 Total OPE Liability - End of Year (a) 12.933.090 14.352.284 13,967,139 10,985,087 10,919,695 11,473,184 11,385,540 Plan Fiduciary Net Position:
Contributions - Employer 872,192 1,184,870 1,251,150 705,652 729,067 718,446 847,696 Contributions - Employees 70,110 65,478 336,878 (31.941) Vet Investment Income (Loss (496,520) 642,090 186,488 135,298 125,181 154,005 Administrative Expenses (4,495) (18,569) (15,198) (12,204) (11,911) (11,107) (3,818) Benefit Payments, Including Refunds
and the Implied Subsidy Benefit Payments (798,430) (1,049,577) (1,040,518) (705,652) (729,067) (718,446) (697,696) Other Miscellaneous Income (Expense) (2)
Net Change in Plan Fiduciary Net Position (357,143) 824,282 718,800 123,092 113,270 142,898 114,241
3.633.800 2.809,508 2.090.708 1.967,616 1,854.346 1.711,448 1,597,207
3.276,657 3.633,800 2,809,508 2.090.708 1.967.616 1,854,346 1.711,448 Net OPEB Liability - Ending (a)(b) $ 9,656,433 $ 10.718,484 $ 11,157,631 _$ 8,894,379 $ 8,952,079 $ 9.618,838 $ 9.674,092 Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability 25.34% 25.32% 20.12% 19.03% 18.02% 16.16% 15.03% Covered - Employee Payroll 8,352,829 $ 7,873,764 $ 8,223,691 $ 8,137,547 $ 7,960,934 $ 7,997,352 $ 7,783,311 Net OPEB Liability as Percentage of
Covered - Employee Payroll 115.61% 136.13% 135.68% 109.30% 112.45% 120.28% 124.29% Notes to Schedule:
Benefit Changes:
There were no changes in benefits.
Changes in Assumptions:
FYE June 30, 2020- Investment rate of return/discount rate was lowered from 6.50% to 6.00%, an implicit rate subsidy was added, and certain demographic assumptions were changed.
FYE June 30, 2021- Investment rate of return/discount rate was lowered from 6.00% to 5.75% FYE June 30, 2022 - Investment rate of return/discount rate was lowered from 5.75% to 5.50% •Fiscal year 2016 was the first year of implementation; therefore, only seven years are shown. (100)
SUPPLEMENTARY INFORMATION
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CITY OF SIGNAL HILL
OTHER GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for revenues derived from specific sources which are usually required by law or administrative regulation to be accounted for in a separate fund.
Asset Seizure Fund - Accounts for the portion of seized monies and property returned to the City for narcotic enforcement and other police related activities, pursuant to federal and state asset forfeitures laws.
Park Development Fund - Accounts for revenues from residential and commercial developers impact fees for park acquisition and improvement purposes.
HDA Grant Fund - Accounts for community development block grant revenues and expenditures for rehabilitation, food distribution and capital projects.
Special Gas Tax Fund - Accounts for receipts and disbursements of monies apportioned to the City under the Streets and Highways Code of the state of California, as well as a Transportation Development Act grant for bicycle and pedestrian facilities.
Transportation Proposition A Fund - As "Proposition A" increased the sales tax in Los Angeles County by.5%, this fund accounts for financial activity relative to the City's share of these monies. "Proposition A" revenues are to be used for public transportation purposes.
Pipeline Removal Fund - Accounts for revenues from fees paid by franchisees on idle pipeline for future removal costs.
Air Quality Improvement Fund - Accounts for revenues apportioned to the City from the Southern California AQMD fees on motor vehicle registrations, used to fund programs to reduce air pollution from mobile sources.
Water Development Fund - Accounts for revenues from residential and commercial developers' impact fees for water system improvements related to new development.
Traffic Impact Fund - Accounts for revenues from residential and commercial developers' impact fees for the purpose of reducing traffic within the City related to new development.
Transportation Proposition C Fund - As "Proposition C" increased the sales tax in Los Angeles County by.5%, this fund accounts for financial activity relative to the City's share of these monies. "Proposition C" revenues are to be used for public transportation purposes.
American Rescue Plan Act Fund - Accounts for the receipt and use of federal funding pursuant to the American Rescue Plan Act.
Lighting and Landscape Fund - Accounts for financial activity relating to the City's landscape and lighting district. Revenues include assessments to property owners within the district and expenditures relate to the maintenance and upkeep of the system.
Supplemental Law Enforcement Fund - Accounts for the receipts and disbursements of monies awarded to the City under the Citizens Option for Public Safety program (otherwise known as the COPS). The grant was established by State Assembly Bill (AB) 3229 and is appropriated through its Supplemental Law Enforcement Fund.
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CITY OF SIGNAL HILL
OTHER GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (CONTINUED)
Public Safety State Resources Fund - Accounts for funding received by the state of California Office of Traffic Safety for public safety overtime related to the enforcement of California's DUl laws.
Housing Impact Fund - Accounts for the revenues collected pursuant to the agreement between the City's Redevelopment Agency and the Development and Disposition Agreement with the Hilltop, LLC.
The fees collected are based upon 2% of the sales price of new residential development and must be used for very low and low income housing.
MTA-STPL Grant Fund - Accounts for receipts and disbursements of grant funds awarded by the Los Angeles County Metropolitan Transportation Authority for eligible transportation capital improvement projects, such as the City's pavement management program.
Measure M Fund - Accounts for the financial activity relative to the City's share of the Los Angeles sales tax increase of 0.5% for traffic improvement transportation projects in accordance with the Los Angeles County Traffic Improvement Plan. "Measure M" revenues are disbursed by the Los Angeles County Metro Transportation Authority (MTA).
Transportation Measure R Fund - As "Measure R" increased the sales tax in Los Angeles County by
0.5%, this fund accounts for financial activity relative to the City's share of those monies. "Measure R" revenues are disbursed by the Los Angeles County Metro Transportation Authority (MTA) and are to be used for public transportation projects.
Planning Grants Fund - The Planning Grants Fund was established to account for grants from external agencies to be used for planning projects.
Los Angeles Impact Fund -The Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT) grant funds provide for a compilation of numerous federal, state and local law enforcement agencies in Los Angeles county whose primary focus is to investigate major crimes, with an emphasis on dismantling mid to major level drug trafficking organizations.
RMRA (SB1) Fund - Accounts for the financial activity relative to the Road Recovery and Accountability Act that was passed on April 6, 2017, providing funding through Senate Bill 1 and the Highway Users Trust Account (HUTA) for maintenance and rehabilitation of roadways.
Measure W Fund - Accounts for the City's share of the California parcel tax increase of $0.025 per square foot of impermeable property for funding projects in accordance with the expenditure plan pursuant to the Los Angeles Region, Safe, Clean Water Program. projects.
Civic Center Phase II Fund - Accounts for funding sources for the design and construction of the Signal Hill Public Library.
Lease Revenue Bond Capital Projects Fund - Accounts for the proceeds of the Signal Hill Municipal Financing Authority's Lease Revenue Bonds, Series 2018, and construction of the portion of the Signal Hill Library provided by the bonds. The Lease Revenue Bond Capital Projects Fund balance is restricted for specific capital project funding.
(105)
CITY OF SIGNAL HILL
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A
--
ASSETS
Cash and Investments $ 203,780 $ 1,223,915 $ : s 1,164,386 763,118 Restricted Cash and Investments
Accrued Interest Receivable 600
Due from Other Governments 125,693 50,946
Loans Receivable 6,037
861.802 :
Advances to Other Funds
-.
Total Assets 203,780 2.085,717 S 132,330 $ 1.215.332 S 763.118
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts Payable $ - $ 5,163 $ - S 8,767
Accrued Liabilities
Unearned Revenues 861,802
Due to Other Funds 109,748
Total Liabilities 861,802 114,911 - 8,767
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 112,214 =
FUND BALANCES
Restricted for
Public Protection 203,780
Development Impact 1,223,915 751351
Transportation 1.215.332
Capital Improvements :
- -
Unrestricted (94,795)
Total Fund Balances 203,780 1,223,915 (94,795) 1.215,332 754,351 Total Liabilities, Deferred
Inflows of Resources and
Fund Balances $ 203,780$ 2,085,717 S 132,330 $ 1.215,332 $ 763,118 (106)
Special Revenue Funds (Continued)
Air American Lighting
Pipeline Quality Water Traffic Transportation Rescue Plan and Removal Improvement Development Impact Proposition C Act Landscape $ 2,312,605$ 103,533 $ 238,408 911,292 691,815 $ 1,275,989 $ 53,509 : 3.821 : : 3,439
741,381 30,603 :
2,312,605 107,354 $ 979,789 $ 941,895 S 691,815 $ 1,275.989 $ 56,948 $ : $ - $ - $ - $ - $ : S 9,871
: ... 741,3817 30,603 1,275,989 :
741,381 30,603 1,275,989 9,871
238,408 911,292 : :
107,354 691.815
2,312,605 - - : 47,077
2,312,605 107,354 238,408 911,292. 691,815 47,077
2.312,605 107,354 $ 979,789 941,895 691,815 $ 1,275.989 56.948 (Continued)
(107)
CITY OF SIGNAL HILL
COMBINING BALANCE SHEET (CONTINUED)
OTHER GOVERNMENTAL FUNDS
JUNE 30, 2022
Special Revenue Funds (Continued)
Supplemental Public Safely
Law State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M
ASSETS
Cash and Investments $ 3,138 $ 741,597 $ 210,553 $ 579,269 Restricted Cash and Investments
Accrued Interest Receivable
Due from Other Governments 11.304 87,76°
Loans Receivable
:
Advances to Other Funds
Total Assets 3,138 S 11,804 $ 741,597 $ 298.319 S 579,269
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
LIABILITIES
Accounts Payable $ $ - $ : s
Accrued Liabilities 3,138 563
Unearned Revenues • ..
Due to Other Funds 11,241
Total Liabilities 3,138 11,804
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
FUND BALANCES
Restricted for
Public Protection
Development Impact 741,597 :
Transportation 298,319 579,269
Capital Improvements -
Unrestricted
Total Fund Balances 741,597 298,319 579,269
Total Liabilities, Deferred
Inflows of Resources and
Fund Balances $ 3,138$ 11.804 $ 741,597 $ 298,319 $ 579,269 (108)
Special Revenue Funds (Continued) Total
Lease Revenue Other
Transportation Planning Los Angeles Civic Center Bond Capital Governmental Measure R Grants Impact RMRA (SB1) Measure W Phase I| Projects Fund Funds $ 690,214 $ - $ 114,562 $ $ 11,781,865
500,182 $ 13,183 :
13,183
600
: 225,000 40,935 . 549,404
6,037
: : 1,633,786
690,214 S 225,000 $ $ 541,117 S 114,562 $ 13,183 S = $ 13.984,875 - S - $ - $ - $ - $ - $ 23,801
3,701
2,909,775
: 225,000 : 13.183 359,172
225,000 13,183 - 3,296,449
208,091 320,305
203,780
: 3,115,212
690.214 541,117 4,877,771
: - 114,562 2,474,244
: (208,091) (302,886)
690,214 (208,091) 541,117 114,562 =. 10,368,121
690,214 $ 225,000 = $ 541,117 $ 114,562 $ 13,183 $ = S 13,984,875 (109)
CITY OF SIGNAL HILL
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A
REVENUES
Other Taxes $ - $ 56550 9 - $
Intergovernmental Revenues 307,013 295,763
Charges for Services 335,246 568
Investment Income (Loss) (4,689) (45,319) (29,692) (17,190) Total Revenues (4,689) 289,927 56,550 277,321 279,141
EXPENDITURES
Current
Police
Community Development : 39,131 : 147,658
Public Works
Total Expenditures 39,131 147,658
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (4,689) 289,927 17,419 277,321 131,483
OTHER FINANCING SOURCES (USES)
Transfers Out (1,054,395) (118,252) (130,000) =
NET CHANGE IN FUND BALANCES (4,689) (764,468) (100,833) 147,321 131,483 Fund Balances - Beginning of Year 208,469 1,988,383 6,038 1,068,011 622,868 FUND BALANCES - END OF YEAR $ 203,780 1.223.915 (94,795) S 1,215,332 $ 754,351 (110)
Special Revenue Funds (Continued)
Air American Lighting
Pipeline Quality Water Traffic Transportation Rescue Plan and Removal Improvement Development Impact Proposition C Act Landscape - $ - 5 - $ 90.084 65,890
14,696 245,330
203,435 8,578 :
(59,384) (3,125) (18,753) (23.441) (14,065)
(59,384) 11,571 184,682 (14,863) 231,265 90,084 65,890
: : : : : :
1,000 62,760
: 1,000 : : 62,760
(59,384) 10,571 184,682 (14,863) 231,265 90,084 3,130
(14,361) (4,194) (597,327) (34,498) (90,084) =
(73,745) 6,377 (412,645) (49,361) 231,265 - 3,130
2,386,350 100,977 651,053 960,653 460,550 43.947
2,312,605 107,354 238,408 S 911,292 691,815 = $ 47,077
(Continued)
(111)
CITY OF SIGNAL HILL
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (CONTINUED)
OTHER GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
Special Revenue Funds (Continued)
Supplemental Public Safety
Law State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M
REVENUES
161,285 $
Intergovernmental Revenues 47,997 87,766 208,181
Charges for Services
Investment Income (Loss) (18,753) (4.688) (12,502)
Total Revenues 161,285 47,997 (18,753) 83,078 195,679
EXPENDITURES
Current
Police 161,285 47,997
Community Development : : :
Public Works
Total Expenditures 161,285 47,997 :
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - (18,753) 83,078 195,679
OTHER FINANCING SOURCES (USES)
Transfers Out = (68)
NET CHANGE IN FUND BALANCES - (18,753) 83,078 195,611
Fund Balances - Beginning of Year 760,350 215,241 383,658 FUND BALANCES - END OF YEAR =$ 741,597 298,319 579,269
(112)
Special Revenue Funds (Continued) Total
Lease Revenue Other
Transportation Planning Los Angeles Civic Center Bond Capital Governmental Measure R Grants Impact RMRA (SB1) Measure W Phase !! Projects Fund Funds $ - $ $ - $ 279,372 $ - $ - 345,262
183968 $ 10.108 234,758 1,943,499
: :
547,827
(17,190) 12 (268,779)
166,778 10,108 234,758 279,372 12 2,567,809
10,108 219,390
: : : : : 186,789
63,760
•• 10,108 : 469,939
166,778 - 234,758 279,372 - 2,097,870
(67,761) (208,091) (117,024) (441,376) (12) (7.174) (2,884,617) 99,017 (208,091) 117,734 (162,004) - (7,174) (786,747)
591,197 423,383 276,566 = 7,174 11,154,868
690,214 (208,091) S = $ 541,117 114.562 = $ $ 10.368,121 (113)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PARK DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Charges for Services $ 375,374 $ 375,374 $ 335,246 $ (40,128) Investment Income (Loss) 3,147 3,147 (45,319) (48,466)
Total Revenues 378,521 378,521 289,927 (88,594)
OTHER FINANCING SOURCES (USES)
Transfers Out (588,480) (1,134,525) (1,054,395) 80,130
NET CHANGE IN FUND BALANCE (209,959) (756,004) (764,468) (8,464) Fund Balance - Beginning of Year 1.988,383 1,988,383 1,988,383 FUND BALANCE - END OF YEAR $ 1,778,424 $ 1,232,379 1,223,915 $ (8,464) (114)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HCDA GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 150,880 $ 150,880 $ 56,550 $ (94,330)
EXPENDITURES
Current:
Community Development 63,420 63.420 39,131 24,289
EXCESS OF REVENUES
UNDER EXPENDITURES 87,460 87,460 17,419 (70,041)
OTHER FINANCING USES
Transfers Out (87,460) (124,620) (118,252) 6,368
NET CHANGE IN FUND BALANCE - (37,160) (100,833) (63,673) Fund Balance - Beginning of Year 6,038 6,038 6,038
FUND BALANCE - END OF YEAR 6,038 (31,122) $ (94,795) $ (63.673) (115)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
SPECIAL GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 285,645 $ 285,645 $ 307,013 $ 21,368 Investment Income (Loss) 2,500 2,500 (29,692) (32,192)
Total Revenues 288,145 288,145 277,321 (10,824)
OTHER FINANCING USES
Transfers Out = (250,000) (130,000) 120,000
NET CHANGE IN FUND BALANCE 288,145 38,145 147,321 109,176 Fund Balance - Beginning of Year 1,068,011 1,068,011 1,068,011 = FUND BALANCE - END OF YEAR $ 1,356,156 $ 1,106,156 $ 1,215,332 $ 109,176 (116)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TRANSPORTATION PROPOSITION A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 211,444 $ 211,444 $ 295,763 $ 84,319 Charges for Services - - 568 568
Investment Income (Loss) 2,250 2,250 (17,191) (19,441)
Total Revenues 213,694 213,694 279,140 65,446
EXPENDITURES
Current:
Community Development 218.773 220,875 147,658 73,217
NET CHANGE IN FUND BALANCE (5,079) (7,181) 131,482 138,663 Fund Balance - Beginning of Year 622,868 622,868 622,868 = FUND BALANCE - END OF YEAR $ 617,789 615,687 754,350 $ 138,663 (117)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PIPELINE REMOVAL SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss) $ 11,000 $ 11,000 $ (59,384) $ (70,384)
OTHER FINANCING USES
Transfers Out (100,000) (143,488) (14,361) 129,127
NET CHANGE IN FUND BALANCE (89,000) (132,488) (73,745) 58,743 Fund Balance - Beginning of Year 2,386,350 2,386,350 2,386,350 - FUND BALANCE - END OF YEAR 2,297,350 $ 2,253,862 2,312,605 $ 58,743 (118)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 15,200 $ 15,200 $ 14,696 $ (504) Investment Income (Loss) 400 (3,125) (3,525)
Total Revenues 15,600 15,800 11,571 (4,029)
EXPENDITURES
Current:
Public Works 1,000 1,000 1,000
EXCESS OF REVENUES
OVER EXPENDITURES 14,600 14,600 10,571 (4,029)
OTHER FINANCING SOURCES
Transfers Out (4,453) (4,453) (4,194) 259
NET CHANGE IN FUND BALANCE 10,147 10,147 6,377 (3,770)
Fund Balance - Beginning of Year 100,977 100,977_ 100,977 = FUND BALANCE - END OF YEAR 111,124 $ 111,124 $ 107,354 $ (3,770) (119)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
WATER DEVELOPMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Charges for Services $ 58,961 $ 58,961 $ 203,435 $ 144,474 Investment Income (Loss) 121 121 (18,753) (18,874)
Total Revenues 59,082 59,082 184,682 125,600
OTHER FINANCING USES
Transfers Out (16,086) (16,086) (597,327) (581,241)
NET CHANGE IN FUND BALANCE 42,996 42,996 (412,645) (455,641) Fund Balance at Beginning of Year 651,053 651,053 651,053 FUND BALANCE AT END OF YEAR $ 694,049 $ 694,049 $ 238,408 $ (455,641) (120)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TRAFFIC IMPACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Charges for Services $ 22,670 $ 22,670 $ 8,578 $ (14,092) Investment Income (Loss) 2,500 2,500 (23,441) (25,941)
Total Revenues 25,170 25,170 (14,863) (40,033)
OTHER FINANCING SOURCES (USES)
Transfers Out (718,233) (718,233) (34,498) 683,735
NET CHANGE IN FUND BALANCE (693,063) (693,063) (49,361) 643,702 Fund Balance - Beginning of Year 960,653 960,653 960,653 = FUND BALANCE - END OF YEAR 267,590 $ 267,590 $ 911,292 643,702 (121)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TRANSPORTATION PROPOSITION C SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 188,856 $ 188,856 $ 245,330 $ 56,474 Investment Income (Loss) 1,875 1,875 (14,065) (15,940)
Total Revenues 190,731 190,731 231,265 40,534
EXPENDITURES
Public Works 5,000 5,000 = 5,000
EXCESS OF REVENUES
O VER EXPENDITURES 185,731 185,731 231,265 45,534
OTHER FINANCING USES
Transfers Out (230,056) (230,056) = 230,056
NET CHANGE IN FUND BALANCE (44,325) (44,325) 231,265 275,590 Fund Balance - Beginning of Year 460,550 460,550 460,550 = FUND BALANCE - END OF YEAR 416,225 $ 416,225 $ 691,815 $ 275,590 (122)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
AMERICAN RESCUE PLAN SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Actual (Negative)
REVENUES
Intergovernmental Revenues $ 1,366,073 $ 1,366,073 90,084 $ (1,275,989)
OTHER FINANCING USES
Transfers Out (2.732,146) (2,732,146) (90,084) 2.642.062 NET CHANGE IN FUND BALANCE (1,366,073) (1,366,073) - 1,366,073 Fund Balance - Beginning of Year - -
FUND BALANCE - END OF YEAR (1,366,073) $ (1,366,073) $ 1,366,073 (123)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
LIGHTING AND LANDSCAPE SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Other Taxes $ 65,886 $ 65,886 $ 65,890 $ 4
Investment Income 250 250 (249)
Total Revenues 66,136 66,136 65,897 (245)
EXPENDITURES
Current:
Public Works 75,653 75,653 62,761 12,892
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (9,517) (9,517) 3,130 12,647
Fund Balance - Beginning of Year 43,947 43,947 43,947
FUND BALANCE - END OF YEAR $ 34,430 $ 34,430 47,077 $ 12,647 (124)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 198,444 $ 198,444 $ 161,285 $ (37,159)
EXPENDITURES
Current:
Police 198,444 198,444 161,285 37,159
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR
(125)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PUBLIC SAFETY STATE RESOURCES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 60,000 $ 60,000 $ 47,997 $ (12,003)
EXPENDITURES
Current:
Police 60,000 60,000 47,997 12,003
NET CHANGE IN FUND BALANCE
Fund Balance - Beginning of Year
FUND BALANCE - END OF YEAR $
(126)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
HOUSING IMPACT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Investment Income (Loss) $ 3,817 $ 3,817 $ (18,753) $ (22,570) Fund Balance - Beginning of Year 760,350 760,350 760,350 FUND BALANCE - END OF YEAR 764,167 764,167 741,597 (22,570) (127)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MTA-STPL GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 1.045 $ 11045 $ 87,766 $ 87,766 Investment Income (Loss) (4,688) (5,733)
Total Revenues 1,045 1,045 83,078 82,033
NET CHANGE IN FUND BALANCE 1,045 1,045 83,078 82,033
Fund Balance - Beginning of Year 215,241 215,241 215,241 = FUND BALANCE - END OF YEAR $ 216,286 $ 216,286 298,319 82,033 (128)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE M SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 149,878 $ 149,878 $ 208,181 $ 58,303 Investment Income (Loss) 1,867 1,86 (12,502) (14,369)
Total Revenues 151,745 151,74: 195,679 43,934
OTHER FINANCING USES
Transfers Out (509,631) (509,631) (68) 509,563
NET CHANGE IN FUND BALANCE (357,886) (357,886) 195,611 553,497 Fund Balance - Beginning of Year 383,658 383,658 383,658 FUND BALANCE - END OF YEAR $ 25,772 $ 25,772 579,269 553,497 (129)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
TRANSPORTATION MEASURE R SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 132,245 $ 132,245 $ 183,968 $ 51,723 Investment Income (Loss) 1,865 (17,190) (19,055)
Total Revenues 134,110 134,185 166,778 32,668
OTHER FINANCING USES
Transfers Out (522,923) (334,752) (67,761) 266,991
NET CHANGE IN FUND BALANCE (388,813) (200,642) 99,017 266,991 Fund Balance - Beginning of Year 591,197 591,197 591,197 FUND BALANCE - END OF YEAR $ 202,384 $ 390,555 $ 690,214 266,991 (130)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
PLANNING GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Actual (Negative)
REVENUES
Intergovernmental Revenues $ 143,132 $ 310,394 $ - $ (310,394)
OTHER FINANCING USES
Transfers Out (143,132) (236,155) (208,091) 28,064
NET CHANGE IN FUND BALANCE - 74,239 (208,091) (282,330) Fund Balance - Beginning of Year - -
FUND BALANCE - END OF YEAR $ 74,239 $ (208,091) $ (282,330) (131)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
RMRA (SB1) SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Intergovernmental Revenues $ 224,991 $ 224,991 $ 234,758 $ 9,767 Investment Income 744 744 9024)
Total Revenues 225,735 225,735 234,758
OTHER FINANCING USES
Transfers Out (502,331) (502,331) (117,024) 385,307
NET CHANGE IN FUND BALANCE (276,596) (276,596) 117,734 394,330 Fund Balance - Beginning of Year 423,383 423,383 423,383 = FUND BALANCE - END OF YEAR $ 146,787 $ 146,787 541,117 $ 394,330 (132)
CITY OF SIGNAL HILL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
MEASURE W SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Other Taxes $ 270,000 $ 270,000 $ 279,372 $ 9,372
OTHER FINANCING USES
Transfers Out (270,000) (424,229) (441,376) (17,147)
NET CHANGE IN FUND BALANCE - (154,229) (162,004) (7,775) Fund Balance - Beginning of Year 276,566 276,566 276,566 - FUND BALANCE - END OF YEAR 276,566 $ 122,337 $ 114,562 $ (7,775) (133)
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STATISTICAL SECTION
(135)
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CITY OF SIGNAL HILL
DESCRIPTION OF STATISTICAL SECTION CONTENTS
This part of the City of Signal Hill's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.
Contents: Pages
Financial Trends - These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 137 - 144
Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 145 - 148 Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the ability to issue additional debt in the future. 149 - 152 Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 153 - 154 Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 155 - 157 (137)
CITY OF SIGNAL HILL
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
2013 2014 2015 2016
Governmental activities
Net investment in capital assets $ 47,617 $ 47,543 $ 48,407 $ 67,914 Restricted 10,172 16,927 17,086 23,481
Unrestricted 33,426 30,728 13,095 7,115
Total governmental activities net position $91,215 $ 95,198 78,588 $ 98,510 Business-type activities
Net investment in capital assets $ 16,315 $ 15,821 $ 16,003 $ 18,952 Restricted 671
4,237 4,660 3,110 1,958
Unrestricted
Total business-type activities net position $ 21,223 20,481$ 19,113 $ 20,910 Primary government
Net investment in capital assets $ 63,932 $ 63,364 $ 64,410 $ 86,866 Restricted 10,843 16,927 17,086 23,481
Unrestricted 37,663 35,388 16,205 9,073
Total primary government net position $112,438 $ 115,679 97,701 $ 119,420 Source: City of Signal Hill, Finance Department
(138)
Fiscal Year Ending June 30,
2017 2018 2019 2020 2021 2022
73,428 $ 83,153 $ 104,567 $ 77,654 $ 76,772 $ 78,459
19,781 19,552 18,360 16,784 17,427 17,132
13,113 11,950 3,243 14,553 20,414 28,649
$ 106,322 $ 114,654 $ 126,170 $ 108,991 $114,613 $124,240 $ 23,636 $ 23,536 $ 23,331 $ 22,655 $ 22,684 $ 23,727
(2,316) (2,572) (2,751) (2,342) (2,083) (2,034)
21,320 20,964 20,580 $ 20,313 20,601 $ 21,693
97,064 $ 106,689 $ 127,898 $ 100,309 $ 99,456 $ 102,186 19,552 18,360 16,784 17,427 17,132
10,797 12,211 18,331 26,615
$ 127,642 $ 135,619 $ 146,750 $ 129,304 $ 135,214 $145,933 (139)
CITY OF SIGNAL HILL
CHANGES IN NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
Fiscal Year Ending June 30.
2013 2014 2015 2016
Expenses
Governmental activities
General governmen $ 3,695 5,556 $ 4,149 $ 3,843
Community services 1,220 1,319 1,251 1,505
7,611 8,220 8,254 9,350
mmunity developme 935 992 942 868
blic wor 4,506 4,142 4,369 4,256
Unallocated infrastructure depreciation 545 614 551 551 nterest on long-term liabilitie: 19,516
Total governmental activities expense: 18,512 20,345 20,375 usiness-type activities - Wate 3,992 4,531 4,424 4,145
Total primary government expense 22.504 25,374 23,940 24.518 Program Revenues
Governmental activities:
Charges for services
General government $ 210 $ 227 $ 201 $ 175
Community services 202 115 192 212
Police 430 297 282 270
Community development 95 368 537 584
Public works 649 431 437 422
Operating grants 1,596 1,619 1,339 9,313
Capital grants and contributions 1,339 2,369 2,433 2,020 Total governmental activities program revenues 4,521 5,426 5,421 12,996 Business-type activities:
Charges for services 3,672 3,734 3,760 3,400
Capital grants and contributions 999
Total business-type activities program revenues 3.672 3.734 3760 4,399 Total primary government program revenues $ 8,193 $ 9,160 $ 9,181 $ 17,395 Net (expense)/revenue
Governmental activities $ (13,991) $ (15,417) (14,095) $ (7,377) Business-type activities (320) (797 (664 254
Total primary government net expenses (14,311) (16,214 (14,759) (7.123) General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Property $ 2,146 $ 1,700 $ 1,797 $ 1,916
Franchise 546 603 773 549
Other 1,483 1,609 1,462 1,459
Intergovernmental - Sales and Use Tax 12,487 14,574 14,588 Investment income 647 850 787 955
Unrestricted grants and contributions 12 66 2,048 46
Gain (loss) on disposition of assets 19
(1.679)
Transfers (25)
Restatement -
Extraordinary item (15,571)
Total governmental activities 1,744 19,401 117,834
Business-type activities:
Investment income (Loss)
Unrestricted grants and contributions
Gain (loss) on disposition of assets
Transfers 25 426 1,679
Total business-type activities 147 477 1,700
Total primary government 1.891 19.455 18,485 19,534
Changes in Net Position
Governmental activities $ (12,247) $ 3,984 $ 3,913 10,457 Business-type activities (173) (743) (187) 1,954
Total primary government (12,420) 3,241 3,726 $ 12,411
(140)
Fiscal Year Ending June 30.
2017 2018 2019 _ 2020 2021 2022
$ 4,633 $ 5,146 $ 4,074 $ 5,787 6,045 $ 7,093
1,362 1,596 1,991 1,757 1,996 2,619
9,576 10,564 11,504 11,817 11,009 11,054
858 963 1,434 989 1,270 1,359
4,605 4,927 4,433 4,787 4,859 4,633
645 639 401 394 394 422
93 221 219 217 492
21,679 24,058 25,750 25,790 27,672
23,928
5,312 4,846 5.056 4,665 5,263 5,747
= 26,991 28,174 29,114 30,415 31.053 33.419
$ 178 $ 216 $ 331 $ 402 $ 90 $ 79
191 203 173 118 85 135
288 250 252 255 169 179
514 567 430 418 553 601
461 790 703 824 1,006 1,215
850 1,199 2,349 1,524 1,819 2,254
9,188 4,586 10,219 730 938 2,828
11,670 7,811 14,457 4,271 4,660 7,291
3,785 4,420 4,335 4,574 5,548 6,208
1,927 42 239 114
5,712 4,462 4,574 4,688 5,548 66,208
$ 17,382 $ 12,273 19.031 8,959 $ 10,208 $ 13,499
$ (10,009) (16,117) $ (9,601) $ (21,479) $ (21,130) $ (20,381) 400 (384) (482) 23 285 461
(9.609) (16,501) (10,083) (21,456) (20,845) (19.920)
1,802 $ $ 2,330 $ 2,801 $ 2,619
735 887 982 975
874 836 920 1,074
14,597 16,834 20,268 24,786
442 1,977 1,346 707
311 94 183 435 553
14 :
4,369
18.775 23.931 21,784 23,401 26,752 30.007
10 28 68 64 3
: :
30 (354) 707
10 28 98 (290) 631
18.785 23,959 21,882 23,111 20.135 30,638
$ 8,766 $ 7,814 $ 12,183 $ 1,922 $ 5,622 $ 9,626
410 (356) (384 (267) 288 1,092
9,176 7,458 11,799 1.655 5,910 10,718
(141)
CITY OF SIGNAL HILL
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
Fiscal Year Ending June 30,
2013 2014 2015 2016
General Fund
Nonspendable $ 7,690 $ 7,695 $ 7,768 $ 8,430
Restricted 13 13
Committed 10,820 12,662 20,588 14,160
Unassigned 7,085 7,611 1,278 12.227
Total General Fund 25,595 27,968 29,647 34,830
All Other Governmental Funds
Nonspendable 5,160 5,131 4,414 4,129
Restricted 9,990 11,712 12,574 19,360
Assigned 414 - - -
Unassigned (703) (2,363) 13193) (2,555)
Total All Other Governmental Funds 14,861 14,480 20.934 Total All Governmental Funds $ 40,456 $42,448 $ 43,442 $ 55,764 Note: GASB 54 was implemented in 2011, prior years have no comparable data Source: City of Signal Hill, Finance Department
(142)
Fiscal Year Ending June 30,
2017 2018 2019 2020 2021 2022
$ 12,126 $ 14,722 11,955 11,892 2,717 3,132
20,630 16,553 15,330 16,209 24,953 30,349
2,226 9,159 10,586 14,151 20,356 23,102
34,995 40,434 37,871 42,252 48,026 56,583
347 16,783 17,114
19,762 28,136 18,359 17.,427
19.218 - 22392) 114-259 16.783 17(90 11350
$ 54,213 $ 66,276 51,971 59,035 65,416 71,937
(143)
CITY OF SIGNAL HILL
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(AMOUNTS EXPRESSED IN THOUSANDS)
Fiscal Year Ending June 30,
2013 2014 2015 2016
Revenues
Taxes $ 17,585 $ 18,862 $ 15,811 $ 21,394
Licenses and permits 328 360 411 370
Intergovernmental 1,475 1,294 1,367 3,591
Charges for services 516 829 739 762
Fines and forfeitures 367 298 301 326
Investment income 53 934 826 778
Other 1,646 113 2,786 652
Total Revenues 21,970 22,690 22,241 27,873
Expenditures
General government 3,772 5,456 4,476 3,940
Community services 1,219 1,320 1,257 1,472
Public safety 7,475 8,147 8,172 9,270
Community development 935 995 952 962
Public works 3,738 3,910 3,627 3,883
Capital outlay 1,511 869 2,485 3,259
Debt Service
Principal retirement
Interest : : 3
Other debt service
18,650 20,697 20,969 22803
otal Expenditure
Excess of revenues over/(under) expenditures 3,320 1,993 1,272 5,070 Other Financing Sources/(Uses)
Transfers in 11808) 3,670 1,694 1,236
Transfers out (3,671) (2,120) (2,915)
Other (3,733) 76 7,578
Total other financing sources (3,758) (1) (350) 5,899
Extraordinary Item
Net change in fund balances $ (438) ≤ 1,992 $ 922 10.969 Capitalized capital outlay $ 869 $ 1,076 1,788 $ 2,985
Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.1% Source: City of Signal Hill, Finance Department
(144)
Fiscal Year Ending June 30,
2017 2018 2019 2020 2021 2022
$ 18,701 $ 19,444 $ 19,800 $ 20,920 $ 24,805 $ 29,240
374 429 580 635 679 763
8,809 5,440 9,202 6,128 2,508 3,028
759 1,066 1,895 1,076 1,390 2,116
289 312 423 328 175 144
830 1,177 1,984 1,995 1,111 224
411 417 78 175 435
30,173 28,285 33,962 31,257 31,102 50572
4,879 4,409 4,715 5,291 5,741 5,591
1,576 1,592 1,727 1,574 1,378 2,019
9,152 9,412 9,514 10,056 9,346 10,245
854 948 1,431 1,021 1,273 1,365
4,046 4,130 4,141 4,254 4,470 4,614
7,726 11,831 22,642 2,075 2,162 4,114
16 100 109 110 335
: 84 244 242 240 516
17 170 16
28,250 32,592 44,530 24.622 24.720 28,799
1,923 (4,307) (10,568) 6,635 6,382 7,228
1,687 5,383 22,854 8,391 2,768 4,933
(1,687) (5,383) (23,044) (8,391) (2,768) (5,640)
8,986
8,986 (190) (07)
4,369
1,923 $ 9,048 (10,758) 6,635 $ 6,382 $ 6,520
$ 7,016 11,075 22,386 $ 1,851 $ 1.670 4,060
0.1% 1.3% 1.6% 1.5% 1.5% 3.4%
(145)
CITY OF SIGNAL HILL
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
Fiscal Year Taxable Total
Ended Secured Property Unsecured Assessed Direct
June 30 Residential Commercial Industrial Vacant Others** Property Value (Note) Tax Rate 2013 978,140 303,924 306,805 80,495 259,131 120,212 2,048,707 0.68639 2014 1,012,408 312,572 316,413 75,859 269,037 134,440 2,120,729 0.06530 2015 1,085,513 319,579 337,455 74,824 326,281 138,597 2,282,249 0.06542 2016 1,141,748 327,201 347,936 101,203 354,901 128,996 2,401,985 0.06560 2017 1,197,754 341,534 362,919 106,832 289,239 129,041 2,427,319 0.06570 2018 1,288,907 351,123 374,721 84,118 265,753 135,990 2,500,612 0.06569 2019 1,342,841 384,692 395,785 63,059 254,320 142,358 2,583,055 0.06625 2020 1,433,729 405,059 417,571 59,734 268,820 143,706 2,728,619 0.06634 2021 1,512,648 440,103 444,367 63,714 240,713 139,651 841,19 0.06641 2022 1,546,286 444,578 456,292 68,651 189,541 138,941 ,844,28 0.06641 ** Includes institutional, miscellaneous, recreational, SBE Nonunitary, cross reference, and unknown property.
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above
Source: County of Los Angeles Assessor / HdL Coren & Cone (146)
CITY OF SIGNAL HILL
DIRECT AND OVERLAPPING PROPERTY TAX RATES
(RATES PER $100 OF TAXABLE VALUE)
LAST TEN FISCAL YEARS
Agency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 County Detention Facilities 1987 Debt 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 L.A. County Flood Control 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Long Beach Community College District 0.05095 0.02241 0.04595 0.03825 0.06736 0.06760 0.06319 0.06309 0.06327 0.06035 Long Beach Unified School District 0.09394 0.07981 0.08764 0.08324 0.08539 0.14732 0.14053 0.14334 0.13363 0.12724 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 _0.00350 0.00350 0.00350 Total Direct and Overlapping (2) Tax Rates 1.14839 1.10572 1.13709 1.12500 1.15625 1.21842 1.20722 1.20993 1.20040 1.19109 City's Share of 1% Levy per Prop 13(3) 0.067770.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 General Obligation Debt Rate 0.000000.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Redevelopment Rate (4) 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rate (5) 0.68639 0.06530 0.06542 0.06560 0.06569 0.06569 0.06559 0.06634 0.06641 0.06641 Notes:
(1)
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. • In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2)
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners.
(3)
City's share of 1% levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures.
RDA rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter.
(5)
Total direct rate is the weighted average of all individual direct rates applied by the City of Signal Hill in preparing the statistical section information.
Source: HdL Coren & Cone
(147)
CITY OF SIGNAL HILL
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
(AMOUNTS EXPRESSED IN THOUSANDS)
- FY 2021-2022 FY 2012-2013
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Signal Hill Petroleum Inc $ 95,887 3.37% $ 149,481 7.30% Bcore Retail Towne Center LLC 61,632 2.17% 0.00%
Long Beach Acquisition Corporation 41,284 1.45% 15,224 0.74% 30,775 1.08% 26,521 1.29%
Towne Center West ILLC ET AL 28,153 0.99% 24,261 1.18%
Costco Wholesale Corporation 25,126 0.88% 20,689 1.01%
Home Depot USA INC 19,332 0.68% 18,119 0.88%
Advanced Group 19 119 ET AL 17,037 0.60% 0.00%
Executive Complex LP 16,968 0.60% 0.00%
19,912
Tesoro Logistics Operations LLC 16,866 0.59% 0.97%
PL Signal Hill LP 0.00% 41,297 2.02%
VNO Tru Cherry Avenue LP 0.00% 14,169 0.69%
Signal Hill Town Center LLC 0.00% 13,690 0.67%
353,060 12.41% $ 343,393 16.76%
Note:
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: HdL Coren & Cone
(148)
CITY OF SIGNAL HILL
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Note (1)
Collected within the Collections
Fiscal Year Taxes Levied Fiscal Year of Levy in Total Collections to Date Ended for the Percent Subsequent Percent
June 30, Fiscal Year (2) Amount (2) of Levy Years Amount of Levy 2013 14,251,099 14,060,300 98.66% N/A N/A N/A
2014 14,434,912 14,434,912 100.00% N/A N/A N/A
2015 15,725,976 13,453,645 85.55% N/A N/A N/A
2016 16,337,411 13,950,475 85.39% N/A N/A N/A
2017 16,186,271 13,397,825 82.77% N/A N/A N/A
2018 16,549,362 12,488,540 75.46% N/A N/A N/A
2019 17,090,273 12,720,601 74.43% N/A N/A N/A
2020 18,004,292 12,183,830 67.67% N/A N/A N/A
2021 18,599,353 13,221,476 71.09% N/A N/A N/A
2022 18,537,379 13,303,458 71.77% N/A N/A N/A
Notes:
(1) Los Angeles County does not provide detail of prior year collections. Therefore, the information about subsequent collections is not available. (2) Taxes Levied and Collected includes amounts applicable to the City and to the Signal Hill Redevelopment Agency and its Successor Agency and the incremental revenue is presented above for comparative purposes
Source: County of Los Angeles Auditor-Controller
(149)
CITY OF SIGNAL HILL
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER CAPITA)
Governmental Activities Business-type Activities
Lease Water Total Percent of Percent of
Fiscal Revenue Leases & Revenue Primary Assessed Per Personal Year Bonds Loans Bonds Loans Government Valuation Capita Income 2013 6,788 6,788 0.331% 594.86 19.27
2014 - 6,424 6,424 0.303% 562.77 17.95
2015 65 6,044 - 6,109 0.268% 523.34 17.88
2016 51 5,650 - 5,701 0.237% 491.08 17.10
2017 36 4,741 - 4,777 0.197% 406.59 12.94
2018 8,974 21 4,269 - 13,264 0.530% 1,124.54 31.74
2019 8,851 4 3,787 12,642 0.489% 1,079.41 29.18
2020 8,723 3,290 12,013 0.440% 1,034.10 25.90
2021 8,590 2,778 11,368 0.400% 980.25 24.10
8,447 13,536 2,251 1.500 25,734 0.905% N/A N/A
N/A Information is not yet available.
Source: City of Signal Hill, Finance Department
(150)
CITY OF SIGNAL HILL
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITY DEBT
AS OF JUNE 30, 2022
Percent Net
Gross Bonded Applicable Bonded
Debt Balance To City Debt
Direct Debt:
260.01 SIGNAL HILL LEASE REVENUE BOND (CITY LIBRRAY) $ 8,447,014 100.000% 8,447,014 Total Direct Debt 8,447,014
Overlapping Debt:
*001.05 METROPOLITAN WATER DISTRICT 9,835,780 0.164% 16,153 807.53 LONG BEACH CCD DS 2002 SERIES D 2007 7,000,081 3.736% 261,535 807.55 LONG BEACH CCD DS 2008 SERIES 2009B 15,096,105 3.736% 564,015 67,033,695 as es es es es es
807.56 LONG BEACH CCD DS REF 2002 2012 SERIES A 3.736% 2,504,489 807.57 LONG BEACH CCD DS REF BONDS 2014 SERIES C 7,055,000 3.736% 263,586 807.59 LONG BEACH CCD DS REF BONDS 2015 SERIES F 16,735,000 3.736% 625,247 807.62 LONG BEACH CCD DS 2016 SERIES B 40,590,000 3.736% 1,516,509 807.63 LONG BEACH CCD DS REF 2017 SERIES G 73,310,000 3.736% CA CA CA CA 2,738,982 807.64 LONG BEACH CCD DS 2016 SERIES C 99,090,000 3.736% 3,702,165 807.65 LONG BEACH CCD DS REF 2019 SERIES H 64,535.000 3.736% 2,411,134 807.66 LONG BEACH CCD DS REF 2021 SERIES I 231,845,000 3.736% $ 8,662,111 883.57 LONG BEACH USD DS 2008 REFUNDING BONDS 15,650,606 3.737% $ 584,806 883.58 LONG BEACH USD DS 2008 SERIES A 660,000 3.737% $ 24,662 883.59 LONG BEACH USD DS 2009 REF BONDS SERIES B 6,420,000 3.737% $ 239,892 883.60 LONG BEACH USD DS 2010 REF BONDS SERIES A 22,475,000 3.737% $ 839,809 883.62 LONG BEACH USD DS 2008 SR B-1 QSCB 65,800,000 3.737% 2,458,706 883.63 LONG BEACH USD DS 2011 REFUNDING BONDS 7,725,686 3.737% $ 288,681 883.64 LONG BEACH USD DS 2012 REF BONDS 79,675,000 3.737% $ 2,977,165 883.65 LONG BEACH USD DS 2008 SERIES C 34,010,000 3.737% $ 1,270,830 883.66 LONG BEACH USD DS 2008 SERIES D 159,330,000 3.737% $ 5,953,582 883.68 LONG BEACH USD DS 2016 REF BONDS 89,998,410 3.737% 3,362,913 883.69 LONG BEACH USD DS 2008 SERIES E 97,980,000 3.737% $ 3,661,156 883.70 LONG BEACH USD DS 2016 SERIES A 358,865,000 3.737% 13,409,478 883.71 LONG BEACH USD DS 2008 SERIES F MEAS K 142,120,000 3.737% los es en 5,310,507 883.72 LONG BEACH USD DS 2016 SERIES B MEAS E 273,665,000 3.737% 10.225.864 Total Overlapping Debt 73.873,977
Total Direct and Overlapping Debt 82,320,991
2021-22 Total Assessed Valuation 2,844,288,968
Less Incremental Value (1.783,270,363)
2021-22 Assessed Valuation 1,061,018,605
Debt to Assessed Valuation Ratios
Direct Debt
6-0%
Overlapping Debt
Total Debt 7.76%
* This fund is a portion of a larger agency and is responsible for debt in areas outside the City.
This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation, unless provided by the City.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Source: HdL, Coren & Cone
(151)
CITY OF SIGNAL HILL
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(AMOUNTS IN THOUSANDS)
Legal Debt Margin Calculation for the Current Year
Assessed value $ 2,844,288,968
Debt limit (15% of assessed value) 426,643,345
Debt applicable to limit
Legal debt margin - Current Year $ 426,643,345
Debt Legal Debt as
Fiscal Debt Applicable Debt Percentag
Year Limit to Limit Margin of Limit
2013 307,306,083 : 307,306,083 0.00%
2014 318,109,295 318,109,295 0.00%
2015 342,337,382 - 342,337,382 0.00%
2016 360,297,745 360,297,745 0.00%
2017 360,297,745 364,097,801 0.00%
2018 375,091,788 375,091,788 0.00%
2019 387,458,342 387,458,342 0.00%
2020 409,292,868 409,292,868 0.00%
2021 426,179,253 426,179,253 0.00%
2022 426,643,345 426,643,345 0.00%
Source: City of Signal Hill, Finance Department
(152)
CITY OF SIGNAL HILL
PLEDGED-REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(AMOUNTS IN THOUSANDS)
Fiscal Pledged Tax Debt Service (1)
Year Revenues Principal Interest Total Coverage
2013
2014 :
2015 - - -
2016 -
2017 - -
2018 - -
2019 - -
2020
2021 :
2022
(1) Debt service amounts are presented on a bond year basis.
Source: City of Signal Hill, Finance Department
(153)
CITY OF SIGNAL HILL
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Personal Per Capita
Calendar City Income Personal Unemployment
Year Population (in thousands) Income Rate
2013 11,411 352,235 30,868 6.0%
2014 11,415 357,826 31,347 9.0%
2015 11,673 341,699 29,273 7.3%
2016 11,609 333,332 28,713 5.7%
2017 11,749 369,284 31,431 3.6%
2018 11,795 417,958 35,435 3.8%
2019 11,712 433,289 36,995 4.1%
2020 11,617 463,769 39,922 11.0%
2021 11,597 471,646 40,670 4.8%
2022 N/A N/A N/A N/A
N/A - Information is not yet available
Sources: City Population - State Department of Finance
Unemployment Rate - Bureau of Labor Statistics
(154)
CITY OF SIGNAL HILL
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
FY 2021-2022 FY 2012-2013
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Costco Wholesale 394 4.69% 218 2.66%
320 3.81% 433 1 5.29%
242 3 2.88% 212 4 2.59%
Home Depot 442 4 5.26% 326 2 3.98%
Global Diving & Salvage, Inc. 200 5 2.38%
American University of Health Sciences 180 6 2.14%
Federal Express Corporation 150 1.79%
Glenn E Thomas Company 135 8 1.61%
Haven Health Care 133 9 1.58%
Long Beach BMW & LB Mini 116 10 1.38% 124 8 1.52%
Bear Tracks, Inc. 146 5 1.78%
Crane Valves North America 130 6 1.59%
Platt Security Inc 129 1.58%
Accountable Healthcare I.P.A. 122 9 1.49%
Accentcare of California 109 10 1.33%
2,312 27.52% 1,949 23.81%
Source: City of Signal Hill Business Licenses, employee counts are self-reported (155)
CITY OF SIGNAL HILL
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY DEPARTMENT
LAST TEN FISCAL YEARS
Fiscal Year Ending June 30,
Department 2013 2014 2015 2016 2017 2018 2019 2021 2022 Administration 5.73 4.73 4.73 4.73 5.00 5.75 5.80 5.80 5.80 5.80 Finance 5.98 5.98 5.98 5.98 6.80 6.75 5.80 5.80 5,80 5.80 Community Services 19.32 19.30 19.53 19.53 18.60 18.60 18.60 18.50 8.80 21.60 Police 53.40 52.89 52.89 52.89 53.00 53.00 53.00 52.10 51.10 52.70 Community Development 6.40 7.00 7.00 7.00 4.00 4.00 4.00 4.00 4.00 4.20 Public Works 30.04 30.02 30.04 30.04 28.00 28.00 28.00 28.00 27.00 28.00 Economic Development 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total 120.87 120.92 121.16 116.40 117.10 116.20 115.20 103.50 119.10 Source:City of Signal Hill, Finance Department
(156)
CITY OF SIGNAL HILL
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year Ending June 30,
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police
Calls for service 6,500 6,400 9,842 9,948 8,632 9,078 8,292 8,382 8,172 8,146 Reports written 3,254 3,312 3,894 4,332 5,618 5,061 4,504 3,804 4,345 4,658 Total arrests 1,120 1,115 1,390 1,216 1,403 1,074 987 880 848 823 Hazardous traffic citations 4,359 4,278 2,496 1,703 3,638 3,613 4,116 3,229 2,616 2,011 Parking citations 4,179 4,212 3,866 4,628 4,222 4,092 4,444 3,737 3,293 4,786 Community Development
Code enforcement cases 85 87 77 68 67 59 48 32 41 42
Building permits 175 181 247 236 279 233 281 249 250 341 Site plan design reviews 7 5 6 6 5 4 3 4 5
Water
Number of customers 3,052 3,079 3,116 3,162 3,302 3,116 3,157 3,147 3,142 3,146 Average daily consumption
(in millions of gallons) 1.82 1.80 1.77 1.58 1.57 1.54 1.55 1.60 1.56 Number of hydrants maintained 422 435 576 578
Public Works
Traffic signals maintained 29
Street sweeping miles 6,240
14,220
1,388
Cross gutter replaced (square feet) 5,067
Engineering
Number of infrastructure
projects administered
Plan checks completed
Community Services
Library items borrowed 39,972 40,001 39,761 29,164 26,029 20,612 35,742 6,665 36,525 Youth sports participants 8,080 6,936 5,697 4,158 144 5,670 After school youth programs 14,746 15,530 15,326 30,960 16,810 20,680 15,585 6,840 13,135 Facility rental bookings 748 176 167 107
Source: Various City Departments
(157)
CITY OF SIGNAL HILL
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2013 2014. 2015 . 2016 2017 2018 2019 2020 2021 — 2022 Public Safety
Police Stations
Patrol Vehicles
Fire Stations 1
Water
Miles of Lines & Mains 50 50 50 50 50 50 50 50 50 50
Reservoirs
Wells
Highways and Streets
Miles of Streets 35.7 35.7 35.7 35.7 35.7 35.7 35.7 35.7 35.7 35.7 Street Trees 3,706 3,706 3,619 3,667 3,667 3,667 3,520 3,467 3,414 3,365 Recreation and Culture
Parks 10
Area of Parks (Acres) 23.03
Libraries
Community Centers* 111111197
Bandstands
Baseball Diamonds 1
Basketball Courts ** 2
* 2021 Community Centers was updated to include the community center at Discovery Well Park that was built in 2002 ** 2021 Basketball Courts was updated to include 4 half courts Source: City of Signal Hill, Finance Department
(158)