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FY 2022-23 Annual Comprehensive Financial Report

Signal Hill City Council
December 12, 2023

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FY 2022-23 Annual Comprehensive Financial Report
Meeting
December 12, 2023
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Signal Hill City Council
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Text extracted from the city's file for reading and search. Open the original on cityofsignalhill.legistar1.com. That file is the official record.

Annual Comprehensive
Financial Report
FISCAL YEAR JUNE 30, 2023

CITY OF SIGNAL HILL, CALIFORNIA
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CITY OF SIGNAL HILL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
Prepared by:

Department of Finance
Sharon del Rosario
Administrative Services Officer/Finance Director
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City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023

TABLE OF CONTENTS
INTRODUCTORY SECTION:

Letter of Transmittal ................................................................................................................ i Certificate of Achievement for Excellence in Financial Reporting ........................................ xiii Elected Officials ................................................................................................................... xiv City Organization Chart ........................................................................................................ xv FINANCIAL SECTION:

Independent Auditor’s Report ................................................................................................ 1 Management's Discussion and Analysis (Required Supplementary Information) .................. 4 Basic Financial Statements:

Government–Wide Financial Statements:

Statement of Net Position ......................................................................................... 20 Statement of Activities .............................................................................................. 21 Fund Financial Statements:

Governmental Funds:

Balance Sheet .......................................................................................................... 23 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................... 25 Statement of Revenues, Expenditures, and Changes in Fund Balances ................. 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............. 28 Proprietary Funds:

Statement of Net Position ......................................................................................... 29 Statement of Revenues, Expenses, and Changes in Net Position .......................... 30 Statement of Cash Flows ......................................................................................... 31 Fiduciary Funds:

Statement of Fiduciary Net Position ......................................................................... 33 Statement of Changes in Fiduciary Net Position ....................................................... 34 Notes to Basic Financial Statements .............................................................................. 35 Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund ................................................................................................................. 86 Housing Authority Special Revenue Fund ..................................................................... 88 Capital Grants Special Revenue Fund ........................................................................... 89 Notes To Required Supplementary Information ............................................................. 90 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous ................... 91 Schedule of Contributions – Miscellaneous ......................................................................... 92 Schedule of Proportionate Share of the Net Pension Liability – Safety ............................... 93 Schedule of Contributions – Safety ...................................................................................... 94 Schedule of Changes in the Net OPEB Liability and Related Ratios ................................... 95 Final Draft
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City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
TABLE OF CONTENTS, (Continued)
Supplementary Information:

Other Governmental Funds:

Description of Other Governmental Funds ..................................................................... 96 Combining Balance Sheet .............................................................................................. 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .. 103 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Park Development Special Revenue Fund ............................................................ 108 HCDA Grant Special Revenue Fund ...................................................................... 109 Special Gas Tax Special Revenue Fund ................................................................ 110 Transportation Proposition A Special Revenue Fund ............................................ 111 Pipeline Removal Special Revenue Fund .............................................................. 112 Air Quality Improvement Special Revenue Fund ................................................... 113 Water Development Special Revenue Fund .......................................................... 114 Traffic Impact Special Revenue Fund .................................................................... 115 Transportation Proposition C Special Revenue Fund ............................................ 116 American Rescue Plan Act Special Revenue Fund ............................................... 117 Lighting and Landscape Special Revenue Fund .................................................... 118 Supplemental Law Enforcement Special Revenue Fund ....................................... 119 Public Safety State Resources Special Revenue Fund ......................................... 120 Housing Impact Special Revenue Fund ................................................................. 121 MTA–STPL Grant Special Revenue Fund ............................................................. 122 Measure M Special Revenue Fund ........................................................................ 123 Transportation Measure R Special Revenue Fund ................................................ 124 Planning Grants Special Revenue Fund ................................................................ 125 RMRA (SB1) Special Revenue Fund ..................................................................... 126 Measure W Special Revenue Fund ......................................................................... 127 TDA Article III Special Revenue Fund ..................................................................... 128 Prop 68 – Parks and Recreation Special Revenue Fund ........................................ 129

STATISTICAL SECTION
Description of Statistical Section ........................................................................................ 130 Financial Trends:

Net Position by Component – Last Ten Fiscal Years ................................................... 131 Changes in Net Position By Component – Last Ten Fiscal Years ............................... 133 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................ 135 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............. 137 Revenue Capacity:

Assessed Value of Taxable Property – Last Ten Fiscal Years .................................... 139 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .......................... 140 Principal Property Tax Payers – Current Year and Nine Years Ago ............................ 141 Property Tax Levies and Collections – Last Ten Fiscal Years ..................................... 142 Final Draft
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City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
TABLE OF CONTENTS, (Continued)
STATISTICAL SECTION, (Continued)
Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ...................................... 143 Direct and Overlapping Governmental Activity Debt .................................................... 144 Legal Debt Margin Information – Last Ten Fiscal Years .............................................. 145 Pledged–Revenue Bond Coverage: Redevelopment Tax Allocation Bonds – Last Fiscal Years .................................................................................................... 146 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years ............................. 147 Principal Employers – Current Year and Nine Years Ago ............................................ 148 Operating Information:

Full–Time Equivalent City Government Employees by Department – Last Ten Fiscal Years ............................................................................................. 149 Operating Indicators by Function – Last Ten Fiscal Years ........................................... 150 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ........................ 151 Final Draft
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INTRODUCTORY SECTION
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CITY OF SIGNAL HILL
2175 Cherry Avenue  Signal Hill, CA 90755-3799
December 12, 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, 2023. 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 Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants, (RAMS) issued an unmodified (“clean”) opinion on the City of Signal Hill’s financial statements for the fiscal year ended June 30, 2023. The independent auditor’s report is located at the front of the financial section of the Annual Comprehensive Financial Report (ACFR).

This report consists of management’s representations concerning the finances of the City and was prepared by the Finance Department with the assistance of the City’s independent auditors in accordance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). 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.

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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 11,431. The City 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, 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 revenue 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. Policymaking 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 128 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 ACFR 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.

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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.

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Local Economy
California cities are making a strong and sustainable fiscal recovery from the pandemic recession of 2020 with a return to normalcy in most business sectors, however, there are still signs of stress in the overall economic outlook. Global economies continue to grapple with higher inflation affecting consumer spending trends, rising interest rates that are putting pressure on the housing market along with car sales and other parts of the economy, COVID variants continue to be a health concern, renewed student loan debt repayments and work stoppages from major labor strikes may also impact domestic budget spending, and the intense geo-political conflicts in Ukraine and Israel may also upset current growth patterns. Even with all this, many economic forecasts believe the US economy remains resilient with renewed consumer confidence and spending and low unemployment that has shielded the economy from recession. However, caution is advised, if the Federal Reserve keeps its benchmark interest rate elevated for a prolonged period, this may cause undue pressure on consumer spending, increase job losses, and weaken the overall economy.

Inflation continues to be one of the most challenging obstacles global economies have attempted to overcome. The Fed has taken an aggressive stance in combating inflation by raising the federal funds target rate from 0.25% in March 2022 to 5.5% in October 2023, its highest level in 22 years.

The inflation rate met a 40-year high of 9.1% in 2022 but has tapered off to 3.7% in September 2023 and is still higher in comparison to the Federal Reserve’s target of 2% inflation rate for the US economy. Furthermore, these actions have also impacted the housing market, which experienced a continued high growth rate (10%) through early 2022 tapering off as mortgage interest rates increase reaching 7.79% in October 2023, a two-decade high. With the number of home sales declining and the median home price increasing, many economists are mixed about the housing market outlook and continue to watch this closely. Even despite these headwinds, the US GDP rose to a robust 4.9% annualized pace for the third quarter ending September 30, 2023, buoyed by low unemployment and solid consumer spending, however, this report could give the Federal Reserve some impetus to keep interest rates high which may begin to negatively impact consumer and business spending habits bringing the economy to a precipice slowdown. UCLA Anderson Forecast foresees a weak US Economy in 2024, followed by a return to trend growth rates, albeit below trend GDP levels, in 2025.

California’s economy remains stable despite the pressure from more than two years of higher than usual inflation and the jump in interest rates. Between January 2020 (just before COVID) and June 2023 prices increased by approximately 17% with food, beverages and energy and gasoline prices rising well above this. California’s severe housing shortage coupled with high interest rates are driving home prices higher as well. As of September 2023, the State’s unemployment rate is currently 4.7%, the second highest of any state. Job growth within California also appears to be slowing, partly due to the State’s labor shortage, negative population growth, and high housing costs. If these conditions continue to persist, this may further impede the State’s long-term Final Draft
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economic growth by causing consumers to make tradeoffs in household spending budgets. Also, the State of California continues to grapple with State budget deficits leaving uncertainty how the State Legislature plans to balance its budget and the possible impacts to local municipalities.

Although there are many variables driving the local economy, most economic forecasts are predicting limited growth in the following years ahead mainly due to inflation and higher interest rates.

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 since the pandemic. 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 tax revenues increasing by 8% from the previous year. The County Pool allocations experienced a decline starting in FY 2021-22 as a result of sales tax law allocations related to in-state fulfillment centers and are still down as compared to FY 2020-21 results. The City’s new transaction and use tax Measure SHR generated 27.4% of the Bradley Burns amount, with general consumer goods continuing to produce the most sales tax revenue. However, according to City’s industry expert, HdL, overall sales trends are forecasted to experience a dip slightly in FY 2023-24 with limited expansion anticipated in the following year.

The City’s major sales tax industry groups continue to 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 Business and Industry (2%) and Autos and Transportation (21%). The gain in the Autos and Transportation sector was mostly attributed to the dealership changes with the overall business sector experiencing new challenges related to higher auto loan rates. The Business and Industry sector benefited from agencies with fulfillment centers where there is a shift from county-wide pools to directly to City’s sales tax base for online purchases and HdL predicts modest overall growth going forward. Building and Construction has seen only modest gains largely due to the slowdown in home-improvements with conditions predicted to persist through 2023 with mild growth through FY 2023-24 followed by improvements in FY 2024-25 hopefully driven by more favorable mortgage rates. General Consumer goods year over year gain slightly contracted from the previous year mainly due to pronounced sales pullback as household finances tighten due to inflation. While consumer spending remains supportive of the economy, the outlook suggests a continued mild decline through the end of 2023 with limited growth in 2024. The Fuel and Service Stations and Restaurants and Hotel sectors year over year change was significantly different from the previous year, -13% and 7%, respectively. Fuel and Service Stations are facing upward price pressure and slowing demand and is predicted to have near zero growth rates going forward. The Restaurant and Hotel sector remains strong but may see pressure from shrinking household budgets with a flat growth rate trend going forward. Signal Hill Measure SHR transaction and sales tax revenue Final Draft
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continues to be the biggest contributor to an increase in overall sales tax revenue with a 5% increase over the prior year. Overall, as reported by HdL, California sales tax performance for FY 2022-23 grew modestly and lags far behind the double-digit growth seen during the pandemic recovery. Looking ahead, households face tight budgets, and various industries grapple with challenges such as labor costs, inventory issues, and competition. All eyes are on the Federal Reserve Board’s upcoming decisions on interest rates which will be the main driver to shape future consumer spending and overall economic growth.

Property taxes account for the next largest revenue source for the General Fund. Local property tax revenues are driven by the value of residential and commercial property and since property tax revenue typically reflects the value of a property anywhere from 18 months to many years prior, these are less immediately responsive to economic changes than other types of taxes. Persistently high mortgage rates continue to test California’s housing market as home sales fell for the fourth consecutive month in September, while the median price rose from the year-ago level for the third straight month to record its largest year-over-year gain in more than a year. In comparison, September’s statewide median home price was down 1.9% from the prior month but up 3.2% from a year ago, with Los Angeles experiencing a decrease of 1.6% from the prior month but up 4% from a year ago based on HdL’ s property tax division. Signal Hill’s home sales have slowed in the past 4 quarters, most likely due to rising interest rates and inflation, and this trend is expected to continue. The City’s overall net taxable property value changed by 6.7%. It is important to point out that a large portion of Signal Hill properties are highly affected by the oil and gas assets within the City. As oil prices change the related property values also fluctuate in the same direction and a portion of the property value changes are likely related to the current price of oil. Property tax rolls are set prior to the commencement of the fiscal year, and therefore property tax revenue was conservatively projected for FY 2023-24.

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 CalPERS Unfunded Accrued Liability (UAL). The UAL mainly fluctuates as a result of investment returns and changes in the discount rate. CalPERS recently announced a gain of 5.8% for FY 2022-23, which is balanced by the prior year’s loss of 7%. When factoring in CalPERS’ discount rate of 6.8% and the 2022-23 preliminary return of 5.8%, the estimated funded status now stands at 72%. 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 issue closely.

The City has also embarked on several key studies that may affect future budgetary planning. The City is currently conducting a comprehensive fee study to review the City’s overall user and regulatory fee structure, basis of fees, and cost recovery. Part of the study will also include a detailed review and in-depth analysis of the City’s current development impact fees, which provide Final Draft
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the proportionate share of the funding for the City’s capital facilities needs that can be reasonably attributed to new growth in the City. The study is expected to be completed by early 2024 in time for the next biennial budget cycle and any approved changes will be incorporated in the next budget. In addition, the City is planning to conduct a water rate study and a water master plan to review the Water Utility fund to ensure overall fiscal sustainability and prioritize water infrastructure needs and future capital improvement planning.

Earlier in 2023, the City Council authorized staff to issue a Notice of Funding Availability for up to $10 million in affordable housing funding to develop the Orange and Walnut Bluff affordable housing sites. The City initiated a competitive process and selected National Community Renaissance (National CORE) as the City’s preferred development partner. National CORE proposed a 380-unit affordable project that includes a 5,000 square foot Boys and Girls Club which would represent a $200 million investment in the community. Additionally, National CORE will seek up to $30 million in grant funding for related public improvements that will build out City infrastructure in that area of the community. The developer and the City will negotiate the terms of an Exclusive Negotiation Agreement that will specify the terms, conditions, and timing of the City’s $10 million funding contribution. Once constructed, the Orange and Walnut Bluff sites would be the largest affordable housing projects in the City’s history and create enhanced property tax value for those sites.

The City also initiated the master planning process for the Civic Center site, which is comprised of Signal Hill Park, the Signal Hill Library, the Community Center, and City Hall. Recently, the City contracted with an architectural firm to develop three conceptual master plans based on community feedback. Given its scope and expected cost, buildout of the Civic Center Master Plan is expected to take approximately 10 years and cost up to $80 million. The first phase of development will include a new amphitheater that will host community events, concerts, and performances; this project will be partially funded through a $5 million grant from the California Arts Council. The City Council will provide further direction to staff regarding its preferred funding and financing options, which may require the City to consider utilizing some existing fund balance and evaluate its capacity to issue debt to construct the project over its lifetime.

FY 2023-24 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 2023-24. The City’s FY 2023-24 Operating Budget focuses on the continued delivery of quality core municipal services while proactively addressing safety and deferred maintenance and operational needs, while maintaining a work environment conducive to retaining and promoting a successful 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.

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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 and recreation programs, increased public engagement thru communications, committees and other city events, and plans for future economic 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 continues to reflect tempered optimism, the current global and local economies continue to face 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, City Council and staff helped craft the new 2023-2028 City of Signal Hill Strategic Plan, which sets the priorities for the City. The framework of the Strategic Plan is centered on three principles that include, Vision (the ideal state of the community in the future), Mission (how we will achieve our vision), and Values (the principles by which we strive to work).

The plan goals include five specific objectives: 1) Financial Stability: Ensure the City’s long-term financial stability and resilience; 2) Community Safety: Maintain community safety by supporting public safety services and increasing emergency preparedness.; 3) Economic & Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core; 4) Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces; 5) High-Functioning Government: Strengthen internal communication, recruitment, retention, systems, and processes to increase the effectiveness and efficiency of City services. The City Council and staff use the Strategic Plan as a tool to guide our actions and 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 Final Draft
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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. 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 constitutional provisions enacted by voters that prescribe strict limits on how municipalities can raise revenues – and even how they can spend 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 $6.3 million in annual revenues in FY 2022-23 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 2022-23 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 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.

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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.

The Finance Department is responsible for establishing and maintaining an internal control structure designed to ensure 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 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 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 2022-23, 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 2022-23 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 City 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 City 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 effectuated by a City Council resolution Final Draft
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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.

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 RAMS, 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, 2022. This was the 27th consecutive year 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. 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 (at that time), CLA Clifton Larson Allen LLP, Certified Public Accountants. Each member of this team has our sincere appreciation. We also extend our thanks and appreciation to Final Draft
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the Signal Hill City Council members for their encouragement and support in conducting the City's financial operations in a responsible manner.

Respectfully submitted.

Sharon del Rosario
Administrative Services Officer/
Finance Director
Carlo Tomaino
City Manager
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FINANCIAL SECTION
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Independent Auditor’s Report
Honorable Mayor and City Council
City of Signal Hill
Signal Hill, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Signal Hill (City), California, as of and for the year ended June 30, 2023, 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 accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position 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 (GAS), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1 of the financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 96, Subscription Based Information Technology Arrangements. Our opinions are not modified in respect to this matter.

Responsibilities of Management for the Financial Statements The City’s 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.

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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.

Auditor’s 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 auditor’s 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 GAS 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 GAS, 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual non-major fund financial statements and the budgetary comparison schedules for major and non-major funds are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual non-major fund financial statements and the budgetary comparison schedules for non-major funds 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.

Such 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 auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements and the budgetary comparison schedules for non-major funds is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information included in the Annual Comprehensive Financial Report Management is responsible for the other information included in the annual report. The other information comprises the transmittal letter and the statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December xx, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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.

San Bernardino, California
December xx, 2023
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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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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, 2023 (FY 2022-23). 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 2021-22 and FY 2022-23. All increases and decreases are expressed relative to FY 2021-22 amounts. Financial highlights for FY 2022-23 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 $145.9 million in FY 2021-22 and equals $164.3 million in FY 2022-23.  Of this amount, $41.1 million is unrestricted and may be used to meet the City's ongoing obligations to residents and creditors. The remaining net position is classified as net investment in capital assets of $107.4 million and restricted of $15.8 million.  The City's total net position increased by $18.4 million over FY 2021-22 and is largely attributed to revenues exceeding expenditures as reported in the statement of activities.

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 threequarter 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 second 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. 96, effective FY 2022-23, 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.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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Throughout the fiscal year, the Federal Reserve combated high inflation by raising interest rates, leading to the City's investment portfolio reaching 98.3% of its book value. The City's policy involves holding investments until maturity to minimize risk in a fluctuating market and safeguard the overall capital. Despite a year-end unrealized loss due to market changes, the total net investment income remained positive and is discussed throughout the MD&A, with more details in Notes 1F and 2 of the City's Financial Statements.

Fund Level
 As of June 30, 2023, governmental funds report a combined fund balance of $81.3 million, an increase of $9.4 million from the prior year. Of this amount, $26.8 million is available for spending at the City's discretion (unassigned fund balance).  As of June 30, 2023, the General Fund reports an ending fund balance of $64.6 million.

Of this amount, $27.1 million is available for spending at the City's discretion (unassigned fund balance). Cash and investments of the General Fund total $51.1 million, which represents 79.1% of the General Fund's total $64.6 million fund balance.  As of June 30, 2023, the City's Water Enterprise fund reports an ending net position of $23.6 million, an increase of $2.0 million from the prior year. The net position is classified as net investment in capital assets of $24.6 million and unrestricted net position of a $1.0 million deficit. The City anticipates the additional revenue collected from Proposition 218 water rate increases in 2020, currently, in year four of five, coupled with the completion of the new Well 10 project, the unrestricted net position of the Water Enterprise fund will continue to gradually increase to a positive position.  As of June 30, 2023, the City's Internal Service fund reports an ending net position of $3.1 million. Of this amount, $2.1 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.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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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), parks, recreation and library 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.

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 including 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.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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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.

The basic governmental fund financial statements can be found beginning on page 23.

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 29 of this report.

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 33 of this report.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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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 governmentwide and fund financial statements. The notes to the basic financial statements can be found beginning on page 35 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.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
A summary of the government-wide Statement of Net Position as of June 30, 2022, and June 30, 2023, and is as follows:

Condensed Statement of Net Position
Governmental Activities Business-Type Activities Totals 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22
Assets:

Current and other assets 125,094,389 $ $ 111,041,105 $ 2,878,206 $ 2,548,338 $ 127,972,595 $ 113,589,443 Capital assets, net 106,396,109 101,143,635 27,963,644 27,800,854 134,359,753 128,944,489 Total Assets 231,490,498 212,184,740 30,841,850 30,349,192 262,332,348 242,533,932 Deferred outflows of resources:

Deferred amount on refunding - - 41,168 58,502 41,168 58,502 Deferred amounts from pension 14,409,260 5,760,306 1,204,438 515,675 15,613,698 6,275,981 Deferred amount from OPEB 1,983,256 2,479,566 214,988 268,789 2,198,244 2,748,355 Total Deferred Outflows 16,392,516 8,239,872 1,460,594 842,966 17,853,110 9,082,838 Liabilities:

Current liabilities 13,774,948 7,479,021 1,119,875 1,182,123 14,894,823 8,661,144 Long-term liabilities 65,909,725 49,396,341 7,151,681 6,479,282 73,061,406 55,875,623 Total Liabilities 79,684,673 56,875,362 8,271,556 7,661,405 87,956,229 64,536,767 .

Deferred inflows of resources:

Deferred amounts from pension 2,617,530 13,657,865 247,505 1,668,323 2,865,035 15,326,188 Deferred amount from OPEB 1,519,420 1,570,027 164,708 170,193 1,684,128 1,740,220 Deferred amounts from Leases 23,388,183 24,081,733 - 23,388,183 - 24,081,733 Total Deferred Inflows 27,525,133 39,309,625 412,213 1,838,516 27,937,346 41,148,141 Net position:

Net investment in capital assets 82,815,477 78,459,175 24,580,013 23,726,827 107,395,490 102,186,002 Restricted 15,748,253 17,131,724 - 15,748,253 - 17,131,724 Unrestricted 42,109,478 28,648,726 (961,338) (2,034,590) 41,148,140 26,614,136 Total Net Position $ 140,673,208 $ 124,239,625 $ 23,618,675 $ 21,692,237 $ 164,291,883 $ 145,931,862 Over time, net position may serve as a useful indicator of a city's financial position. At June 30, 2023, the City’s net position was $164.3 million, an increase of $18.4 million over the net position of $145.9 million at June 30, 2022.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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The largest portion of the City's net position ($107.4 million or 65.4%) is its investment in capital assets (e.g., land, buildings, infrastructure, and equipment, right-to-use assets, etc.), net of related debt. The City uses capital assets to provide services to residents; 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 Discovery Well Park project, ongoing pavement management improvements, and the completion of Heritage Point Park, and the Spring Street overlay.

The City's restricted net position totals $15.8 million (9.6% 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 $41.1 million (25.0%) represents unrestricted net position; this category of net position may be used to meet the City's ongoing obligations to residents and creditors.

Total net position increased by $18.4 million from an excess of revenues over expenses. This net increase was reflected by an increase of $14.5 and $5.2 million in unrestricted net position and net investment in capital assets, respectively, and offset by a decrease in restricted net position of $1.3 million. The excess of revenues over expenses will be analyzed in conjunction with the Statement of Activities.

With the implementation of GASB 96, the City was required to report long-term subscriptions in the financial statements. The following categories were added to the financial statements:
intangible (right-to-use asset) subscription assets, and subscription liabilities. Additional information and discussion of these can be found in Notes 1D, 1L, and 6 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 overall $18.4 million increase in net position resulting from program expenses being less than total program and general revenues. A discussion regarding significant changes in revenues and expenses follows the table.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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Condensed Statement of Activities
Governmental Activities Business-type Activities Totals 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22
Revenues:

Program revenues:

Charges for services 2,282,923 $ 2,209,181 $ 6,279,769 $ 6,208,013 $ 8,562,692 $ 8,417,194 $ Grants and contributions:

Operating 2,030,233 2,253,943 - - 2,030,233 2,253,943
Capital 2,089,700 2,828,139 - - 2,089,700 2,828,139
General revenues:

Property taxes 2,971,818 2,618,545 - - 2,971,818 2,618,545 Sales and use taxes 26,461,978 24,786,099 - 26,461,978 - 24,786,099 Other taxes 2,441,641 2,048,969 - - 2,441,641 2,048,969 Investment income 2,207,630 706,816 51,416 (76,572) 2,259,046 630,244 Unrestricted grants and
contributions 788,511 553,591 - - 788,511 553,591
Total revenues 41,274,434 38,005,283 6,331,185 6,131,441 47,605,619 44,136,724 Expenses:

General government 6,220,479 7,092,705 - - 6,220,479 7,092,705 Parks, recreation, and library services 2,534,696 2,619,137 - - 2,534,696 2,619,137 Police 9,014,012 11,054,042 - - 9,014,012 11,054,042
Community development 1,257,083 1,359,366 - - 1,257,083 1,359,366 Public works 4,750,389 4,632,836 - - 4,750,389 4,632,836 Interest expense 494,040 492,113 - 81,540 494,040 573,653 Unallocated infrastructure
depreciation 421,707 421,707 - - 421,707 421,707
Water - 4,553,192 - 5,665,391 4,553,192 5,665,391
Total expenses 24,692,406 27,671,906 4,553,192 5,746,931 29,245,598 33,418,837 Excess of revenues over expenses 16,582,028 10,333,377 1,777,993 384,510 18,360,021 10,717,887 Transfers (148,445) (707,326) 148,445 707,326 - -
Change in net position 16,433,583 9,626,051 1,926,438 1,091,836 18,360,021 10,717,887 Net position, beginning 124,239,625 114,613,574 21,692,237 20,600,401 145,931,862 135,213,975 Net position, ending $ 140,673,208 $ 124,239,625 $ 23,618,675 $ 21,692,237 $ 164,291,883 $ 145,931,862 Government-wide revenues increased by $3.5 million (7.9%) to $47.6 million. The majority of this increase resulted from an increase of $1.7 million in sales and use taxes, an increase of $1.6 million in Investment Income partially due to implementation of GASB 87 and interest income derived from the City’s investment portfolio performing better as compared to prior year due to the rise in interest rates.

Operating and capital grants decreased by $0.9 million as compared to the prior year, as the related projects were completed towards the beginning of the fiscal year. The remaining changes include all other governmental activities accounting for a net $1.1 million increase mainly comprised of $0.4 million increase in property tax revenue and $0.4 million increase in other tax revenue.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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The most significant portion of the City's revenue came from sales and use taxes, which accounted for 55.6% of total revenue. Charges for services accounted for 18.0% of total revenue. Additionally, 8.7% was received from grants and contributions, 6.2% from property taxes, 5.1% from other taxes, and the remaining 6.4% was from investment income.

Government-wide expenses of all City programs and services decreased by a net $4.2 million (12.5%) to $29.2 million for the fiscal year ended June 30, 2023. Governmental Activities decreased by $3.0 million while the Business Type Activities decreased by $1.2 million.

Expenses include adjustments for depreciation, long-term debt, and pension costs. The net decrease in Government-wide expenses is spread across the City's programs with decreases in General Government by $0.9 million, Parks, recreation, and library services by $0.1 million, Water by $1.2 million, Community Development and Public works both decreased by $0.1 million each, and the largest decrease in Police by $2 million. Interest Expense is now presented on a separate line item at $0.6 million and is attributed to long-term debt and leases/subscription liabilities.

Police accounted for 30.8% of the total costs, General Government for 21.3%, Water for 15.3%, and Public Works for 16.2%, with Parks, Recreation, and Library Services for 8.7%, Community Development for 4.3%, Interest Expense for 2.0% and Unallocated Infrastructure Depreciation for 1.4% accounting for the remaining expenses.

The following two charts show the source and use of funds for Governmental Activities:

Governmental activities contributed $16.6 million before transfers 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 $3.3 million (8.6%), to $41.3 million. Approximately $1.7 million of this increase is related to actual sales and use tax revenues higher than estimated. Interest income also increased by $1.6 million.

Property tax revenue increased by $.4 million and other tax revenues increased by $0.4 million, while operating and capital grants decreased by $0.9 million.

Expenses of governmental activities decreased by a net $3.0 million (10.8%). Expenses include adjustments for depreciation, long-term debt, and pension costs. The net decrease is spread across the City's programs with Police decreasing by $2.0 million, General Government decreasing by $0.9 million, Parks, recreation and Library Services decreasing by $0.08 million, Community Development and Public Works both decreasing by $0.01 million each. Interest and unallocated depreciation expense experienced a very negligible change.

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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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Operating Grants, 5%
Other Revenue, 2%
Sales & Use Tax, 64%
Property Taxes, 7%
Other Taxes, 6%
Charges for Services, 6%
Investment Income, 5%
Capital Grants, 5%
Revenues by Source - Governmental Activities
Fiscal Year 2022-23
Interest Expense, 2% Unallocated Depreciation, 2%
Public Works, 19%
Parks, recreation, and library
services, 10%
Police, 37%
Community Development, 5%
General Government, 25%
Expenses - Governmental Activities
Fiscal Year 2022-23
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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
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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 $23.6 million as compared to $21.6 million at the end of the prior year. This represents an increase in net position of $1.9 million or 8.9%. The increase can largely be attributed to the advance received from the General Fund for the Gundry Reservoir Improvement Project.

Revenues of $6.3 million consist of charges for services. This is an increase of $0.2 million or

3.3% over the prior year's total revenue of $6.1 million. The increase is mainly due to increased water rates as compared to the prior year. Expenses totaled $4.6 million in the current year, a decrease of $1.2 million over the prior year's expenses of $5.8 million. The majority of the decrease is attributed to a reduction in the pension expense allocation and lower salary costs due to several vacant positions. For more details relating to the Water Utilities Enterprise Fund activities and water management plan please see the City's Website.

Investment Income, 1%
Charges for Services, 99%
Revenues by Source - Business-type Activities
Fiscal Year 2022-23
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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-14-
Depreciation, 19%
Other, 12%
Interest Expense, 2%
Personnel, 8%
Contractual, 8%
Supplies, 39%
Utilities, 5%
Materials & Repairs, 7%
Expenses - Business-type Activities
Fiscal Year 2022-23

FUND FINANCIAL ANALYSIS
The City's major governmental funds for FY 2022-23 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 $8.0 million in FY 2022-23. This increase resulted from revenues and transfers-in totaling $36.7 and $0.6 million, respectively, exceeding expenditures, net of subscription acquisition sources, totaling $28.5 million and transfers out totaling $0.8 million
General Fund revenues increased by a net of $4.2 million compared to FY 2021-22. This net increase is mainly explained by a $1.7 million increase in sales and use tax revenues and a $1.4 million increase in investment income from the prior year. Both the Bradley Burns 1% sales tax and Measure R (SHR) sales tax total came in higher than projected by $1.4 million.

Investment Income was mostly higher to interest income derived from the City’s investment portfolio performing better as compared to the prior year due to the rise in interest rates.

Final Draft
Subject to Change
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-15-
Overall, the General Fund’s operating expenditures were higher than the prior year by $3.6 million but were lower than anticipated by $5.2 million. Operating expenditures are budgeted at full capacity and FY 22-23 operating expenditures include $2.0 million in one-time expenditures for a special project. The total expenditures and transferred out were lower than budgeted and projected mainly due to a large number of position vacancies across all departments but most notably in the police department. When comparing this to the prior year, the position vacancy rate was also significant yielding lower than anticipated expenditure costs contributing to an overall General Fund surplus.

Housing Authority Special Revenue Fund
The Housing Authority fund balance increased by $0.4 million to $6.5 million as compared to the prior year's fund balance of $6.0 million. The fund's activity consists of interest income and professional services for assistance in administering the City's housing program. Interest income increased due to the rise in interest rates yielding better than expected results as compared to the prior year. The Housing Authority also received a transfer of $0.35 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 2022-23 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 $3.9 million for the fiscal year. The major projects worked on in FY 2022-2023 included Discovery Well 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.

Final Draft
Subject to Change
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-16-
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 $0.1 million excluding surplus adjustments utilizing the prior year surplus.

The main reasons for the increases related to contract services and personnel adjustments.

Total General Fund revenues of $36.7 million were $7.0 million higher than the budgeted amount of $29.7 million. This was mainly due to conservatively budgeting the performance of the new Signal Hill Measure R (SHR) sales tax revenue without historical data to rely on. As year two of Measure SHR progressed, the total sales tax projection was increased resulting in increasing the total revenue projection to $33.0 million. Due to conservative budgeting of revenues, all revenue categories exceeded the budget except for Fines and Forfeitures.

Total General Fund expenditures of $28.5 million net of subscription acquisition costs were projected at $29.7 million, coming in $1.2 million lower than projected. In comparison to the budget, actual expenditures were below the budget by $5.2 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 and Administration departments. Administration and the Public Works department also experienced lower use of planned contract services also contributing to lower than budgeted expenditures.

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets for its governmental and business-type activities as of June 30, 2023, totaled $134.3 million, net of depreciation and amortization. These assets include buildings, infrastructure, land, machinery and equipment, right-to-use assets, park facilities, vehicles, water lines, and construction in progress. FY 2022-23 had a net increase in capital assets of $5.4 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 96. For additional information see Notes IH and 3 of the Notes to Basic Financial Statements.

Capital Assets
Governmental Activities Business-Type Activities Totals 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22
Land 35,519,323 $ $ 35,499,457 $ 4,427,416 $ 4,427,416 $ 39,946,739 $ 39,926,873 Water rights - - 243,933 274,313 243,933 274,313
Construction in progress 3,142,305 3,997,493 686,161 3,652,825 3,828,466 7,650,318 Buildings & equipment 40,827,530 36,729,140 22,552,260 19,446,300 63,379,790 56,175,440 Infrastructure 12,153,617 11,565,629 - 12,153,617 - 11,565,629 Right-to-use assets 14,753,334 13,351,916 53,874 14,807,208 - 13,351,916 Total assets $ 101,143,635 106,396,109 $ 27,963,644 $ 27,800,854 $ 134,359,753 $ 128,944,489 $ Final Draft
Subject to Change
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-17-
Debt Administration
Following is a summary of the City's long-term liabilities:

Long-term Liabilities
Governmental Activities Business-Type Activities Totals 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22
Water revenue bonds - $ - $ 1,708,631 $ 2,250,686 $ 1,708,631 $ 2,250,686 $ Leave revenue bonds 7,773,965 8,447,014 - - 7,773,965 8,447,014 Water replenishment district loan - 1,500,000 1,500,000 1,500,000 1,500,000 Leases payable 13,292,629 13,535,982 - - 13,292,629 13,535,982 Subscriptions payable 1,936,175 - 57,268 - 1,993,443 -
Net pension liability 34,003,165 17,743,002 2,955,889 1,720,555 36,959,054 19,463,557 Net OPEB liability 8,090,032 8,712,034 876,973 944,399 8,967,005 9,656,433 Compensated absences 813,759 958,309 52,920 63,642 866,679 1,021,951 Total long-term liabilities $ 65,909,725 $ 49,396,341 $ 7,151,681 $ 6,479,282 $ 73,061,406 $ 55,875,623 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 $1.7 million at yearend. The lease revenue bonds are part of the City's governmental activities, and the outstanding bond liability is $7.8 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 longterm obligations can be found in the following Notes to Basic Financial Statements:
 Note 1M: Employee compensated absences
 Note 6: Long-term liabilities
 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 2022-23, 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.

Final Draft
Subject to Change
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-18-
In developing the FY 2023-24 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 2023-24, the City utilized planned revenues and transfers that are equal to planned operating expenditures for the budget year. Most general fund revenue categories were adjusted to reflect current industry estimates based on cautious optimism, yet conservative view. The FY 2023-24 operating budget reflects General Fund estimated revenues and transfers-in totaling $33.5 million, an increase of $2.9 million to the adopted FY 2022-23 budgeted revenues. The increase can mainly be attributed to an increase in sales and use tax.

FY 2022-23 marked the second 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 2023-24 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 2023-24 operating budget reflects General Fund appropriated expenditures and net transfers-out totaling $35.9 million, an increase of $2.5 million to the adopted FY 2022-23 budget. The increase in expenditures is mainly due to an increase in 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, other infrastructure and plan for future economic development; 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 several 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.

Final Draft
Subject to Change
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
-19-
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.

Final Draft
Subject to Change
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Final Draft
Subject to Change
City of Signal Hill
Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements. -20-
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments $ 77,731,638 $ 5,793,545 $ 83,525,183 Receivables:

Accounts 527,606 970,990 1,498,596
Accrued interest 473,869 - 473,869
Due from other governments 6,092,208 - 6,092,208
Leases 24,374,960 - 24,374,960
Loans 1,685,069 - 1,685,069
From Successor Agency 9,192,507 - 9,192,507
Internal balances 3,886,387 (3,886,387) -
Prepaid items 88,971 - 88,971
Land and improvements held for resale, net 1,040,642 - 1,040,642 Restricted Assets:

Cash and investments 532 58 590
Capital assets, not being depreciated 38,661,628 5,113,577 43,775,205 Capital assets, being depreciated and amortized,
Net of accumulated depreciation and amortization 67,734,481 22,850,067 90,584,548 Total Assets 231,490,498 30,841,850 262,332,348

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding - 41,168 41,168
Pension related 14,409,260 1,204,438 15,613,698
OPEB related 1,983,256 214,988 2,198,244
Total Deferred Outflows of Resources 16,392,516 1,460,594 17,853,110

LIABILITIES
Accounts payable 1,945,935 641,897 2,587,832
Accrued liabilities 1,907,417 57,937 1,965,354
Accrued interest payable 50,658 58,473 109,131
Deposits payable 470,330 361,568 831,898
Unearned revenue 9,400,608 - 9,400,608
Noncurrent liabilities:

Due within one year 1,515,506 603,905 2,119,411
Due in more than one year:

Other 22,301,022 2,714,914 25,015,936
Net pension liability 34,003,165 2,955,889 36,959,054
Net OPEB liability 8,090,032 876,973 8,967,005
Total Liabilities 79,684,673 8,271,556 87,956,229

DEFERRED INFLOWS OF RESOURCES
Pension related 2,617,530 247,505 2,865,035
OPEB related 1,519,420 164,708 1,684,128
Lease related 23,388,183 - 23,388,183
Total Deferred Inflows of Resources 27,525,133 412,213 27,937,346

NET POSITION
Net investment in capital assets 82,815,477 24,580,013 107,395,490 Restricted for:

Capital improvements 3,109,563 - 3,109,563
Development impact 2,883,193 - 2,883,193
Transportation 4,754,906 - 4,754,906
Housing 5,000,591 - 5,000,591
Unrestricted 42,109,478 (961,338) 41,148,140
Total Net Position $ 140,673,208 $ 23,618,675 $ 164,291,883 Final Draft
Subject to Change
City of Signal Hill
Statement of Activities
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -21-
Program Revenues
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions

GOVERNMENTAL ACTIVITIES
General government 6,220,479 $ 69,319 $ $ 143,084 $ -
Parks, recreation, and library services 2,534,696 172,913 - - Police 9,014,012 192,424 313,765 -
Community development 1,257,083 637,076 437,328 185,000 Public works 4,750,389 1,211,191 1,136,056 1,904,700
Unallocated infrastructure depreciation 421,707 - - -
Interest on long-term liabilities 494,040 - - -
Total Governmental Activities 24,692,406 2,282,923 2,030,233 2,089,700

BUSINESS-TYPE ACTIVITIES
Water 4,553,192 6,279,769 - -
Total Business-Type Activities 4,553,192 6,279,769 - -
Total $ 29,245,598 $ 8,562,692 $ 2,030,233 $ 2,089,700

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
Unrestricted grants and contributions
Total General Revenues
Transfers

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION, END OF YEAR
Final Draft
Subject to Change
-22-
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Total
$ (6,008,076) $ - $ (6,008,076)
(2,361,783) - (2,361,783)
(8,507,823) - (8,507,823)
2,321 - 2,321
(498,442) - (498,442)
(421,707) - (421,707)
(494,040) - (494,040)
(18,289,550) (18,289,550) -
- 1,726,577 1,726,577
- 1,726,577 1,726,577
(18,289,550) 1,726,577 (16,562,973)
2,971,818 - 2,971,818
1,073,024 - 1,073,024
605,679 - 605,679
330,085 - 330,085
12,057 - 12,057
420,796 - 420,796
26,461,978 - 26,461,978
2,207,630 51,416 2,259,046
788,511 - 788,511
34,871,578 51,416 34,922,994
(148,445) 148,445 -
16,433,583 1,926,438 18,360,021
124,239,625 21,692,237 145,931,862
$ 140,673,208 $ 23,618,675 $ 164,291,883
Final Draft
Subject to Change
City of Signal Hill
Balance Sheet
Governmental Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -23-
Housing Authority Capital Grants
Special Revenue Special Revenue
General Fund Fund
ASSETS
Cash and investments 51,078,579 $ 5,822,618 $ 4,843,814 $ Receivables:

Accounts 507,142 - -
Interest 473,269 - -
Due from other governments 5,252,815 - 401,818
Leases 24,374,960 - -
Loans - 1,679,031 -
Receivable due from Successor Agency 9,192,507 - -
Prepaid items 65,587 - -
Due from other funds 326,940 - -
Advances to other funds 3,893,291 - -
Land and improvements held for resale 425,001 615,641 - Restricted assets:

Cash and investments 523 - -
Total assets 95,590,614 $ 8,117,290 $ 5,245,632 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,146,205 $ 957 $ - $
Accrued liabilities 1,896,610 - -
Deposits payable 470,330 - -
Unearned revenue 6,904 - 5,245,632
Due to other funds - - -
Advances from other funds - 1,640,690 -
Total liabilities 3,520,049 1,641,647 5,245,632
Deferred inflows of resources:

Unavailable revenues 27,490,830 - 201,682
Total deferred inflows of resources 27,490,830 - 201,682 Fund balances (deficits):

Nonspendable 10,460,516 - -
Restricted - 6,475,643 -
Committed 26,947,980 - -
Unassigned 27,171,239 - (201,682)
Total Fund Balances (Deficits) 64,579,735 6,475,643 (201,682) Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 95,590,614 $ 8,117,290 $ 5,245,632 Final Draft
Subject to Change
-24-
Capital
Improvement Other Total
Capital Projects Governmental Governmental
Fund Funds Funds
$ 995,210 $ 12,687,262 $ 75,427,483
17,863 - 525,005
- 600 473,869
- 437,575 6,092,208
- 24,374,960 -
- 6,038 1,685,069
- 9,192,507 -
- - 65,587
- - 326,940
- 1,633,786 5,527,077
- 1,040,642 -
- 9 532
$ 1,013,073 $ 14,765,270 $ 124,731,879
$ 613,071 $ 19,603 $ 1,779,836
- 6,561 1,903,171
- - 470,330
- 4,148,072 9,400,608
- 326,940 326,940
- 1,640,690 -
613,071 4,501,176 15,521,575
- 185,600 27,878,112
- 185,600 27,878,112
- 10,460,516 -
400,002 10,263,494 17,139,139
- 26,947,980 -
- (185,000) 26,784,557
400,002 10,078,494 81,332,192
$ 1,013,073 $ 14,765,270 $ 124,731,879
Final Draft
Subject to Change
City of Signal Hill
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements. -25-
Fund Balances - Total Governmental Funds $ 81,332,192
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 $ 35,519,323
Construction in progress 3,029,681
Infrastructure, net of $19,026,795 accumulated depreciation 12,153,617 Structures and improvements, net of $13,195,151 accumulated depreciation 37,376,642 Vehicles, equipment and furniture, net of $2,112,860 accumulated depreciation 2,422,020 Total Capital Assets Used in Governmental Activities 90,501,283 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 and subscription 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 $1,179,896 accumulated amortization 14,753,334 Lease liability (13,292,629)
Subscription liability (1,936,175)
(475,470)
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. 4,489,929 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. 3,101,436 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 outflows of resources - pension 14,349,961
Deferred outflows of resources - OPEB 1,956,877
Deferred inflows of resources - pension (2,605,344)
Deferred inflows of resources - OPEB (1,499,210)
12,202,284
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 (50,658)
Revenue bonds payable (7,773,965)
Compensated absences (813,759)
Net pension liability (33,857,636)
Net OPEB liability (7,982,428)
(50,478,446)
Net Position of Governmental Activities $ 140,673,208
Final Draft
Subject to Change
City of Signal Hill
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -26-
Housing Authority Capital Grants
Special Revenue Special Revenue
General Fund Fund

REVENUES
Property taxes 2,695,267 $ - $ - $
Sales and use tax 26,461,978 - -
Other taxes 2,162,564 - -
Licenses and permits 809,142 - -
Intergovernmental revenues 93,174 - 2,817,566
Charges for services 1,591,146 - -
Fines and forfeitures 149,165 - -
Investment income 2,001,124 85,414 -
Other revenue 789,007 - -
Total Revenues 36,752,567 85,414 2,817,566

EXPENDITURES
Current:

General government 6,061,039 - -
Parks, recreation, and library services 2,284,949 - -
Police 10,069,114 - -
Community development 1,127,609 1,025 -
Public works 5,207,956 - -
Capital outlay 4,359,394 - -
Debt service:

Principal 1,152,352 - -
Interest 486,131 - -
Total Expenditures 30,748,544 1,025 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 6,004,023 84,389 2,817,566

OTHER FINANCING SOURCES (USES)
Subscription acquisition 2,195,174 - -
Transfers in 615,464 347,958 2,900
Transfers out (817,960) - (1,564,422)
Total Other Financing Sources (Uses) 1,992,678 347,958 (1,561,522) Net Changes in Fund Balances 7,996,701 432,347 1,256,044 Fund Balances (Deficit), Beginning 56,583,034 6,043,296 (1,457,726) Fund Balances (Deficit), Ending $ 64,579,735 $ 6,475,643 $ (201,682) Final Draft
Subject to Change
-27-
Capital
Improvement Non-major Total
Capital Projects Governmental Governmental
Fund Funds Funds
$ - $ - $ 2,695,267
- 26,461,978 -
- 364,807 2,527,371
- - 809,142
- 2,336,089 5,246,829
- 102 1,591,248
- - 149,165
- 131,376 2,217,914
- - 789,007
- 2,832,374 42,487,921
- - 6,061,039
- - 2,284,949
- 250,218 10,319,332
- 202,517 1,331,151
- 41,215 5,249,171
3,895,666 - 8,255,060
- - 1,152,352
- - 486,131
3,895,666 493,950 35,139,185
(3,895,666) 2,338,424 7,348,736
- - 2,195,174
3,895,666 - 4,861,988
(2,628,051) - (5,010,433)
3,895,666 (2,628,051) 2,046,729
- (289,627) 9,395,465
400,002 10,368,121 71,936,727
$ 400,002 $ 10,078,494 $ 81,332,192
Final Draft
Subject to Change
City of Signal Hill
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -28-
Net Change in Fund Balances - Total Governmental Funds $ 9,395,465 Amounts reported for governmental activities in the Statement of Net 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 and subscription term:

Capital outlay $ 7,598,950
Depreciation expense (1,652,449)
Amortization expense (793,756)
5,152,745
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:

SBITA acquisition (2,195,174)
Repayment of revenue bonds 650,000
Repayment of subscription liability 258,999
Repayment of lease liability 243,353
(1,042,822)
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 135,769
Net change in accrued interest payable (30,958)
Amortization of bond premium 23,049
127,860
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. (1,238,174)
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. 465,033
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. 3,399,522 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 OPEB amounts for deferred outflows of resources and deferred inflows of resources. 173,954
Change in Net Position of Governmental Activities $ 16,433,583 Final Draft
Subject to Change
City of Signal Hill
Statement of Net Position
Proprietary Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -29-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
ASSETS
Current Assets:

Cash and investments $ 2,304,155 5,793,545 $
Accounts receivable, net 970,990 2,601
Prepaid items - 23,384
Total Current Assets 6,764,535 2,330,140
Noncurrent assets:

Restricted cash and investments 58 -
Capital assets:

Land 4,427,416 -
Construction in progress 686,161 112,624
Depreciable assets, net of accumulated depreciation 22,850,067 1,028,868 Total Noncurrent Assets 27,963,702 1,141,492
Total Assets 34,728,237 3,471,632

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding 41,168 -
Pension related 1,204,438 59,299
OPEB related 214,988 26,379
Total Deferred Outflows of Resources 1,460,594 85,678

LIABILITIES
Current Liabilities:

Accounts payable 641,897 166,099
Accrued liabilities 57,937 4,246
Accrued interest payable 58,473 -
Deposits payable 361,568 -
Advances from other funds 3,886,387 -
Current portion of long-term liabilities 603,905 -
Total Current Liabilities 5,610,167 170,345
Non-Current Liabilities:

Long-term liabilities, net of current portion 2,714,914 - Net pension liability 2,955,889 145,529
Net OPEB liability 876,973 107,604
Total Long-term Liabilities 6,547,776 253,133
Total Liabilities 12,157,943 423,478

DEFERRED INFLOWS OF RESOURCES
Pension related 247,505 12,186
OPEB related 164,708 20,210
Total Deferred Inflows of Resources 412,213 32,396

NET POSITION
Net investment in capital assets 24,580,013 1,027,258
Unrestricted (961,338) 2,074,178
Total Net Position 23,618,675 $ 3,101,436
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds -
Net Position of Business-Type Activity $ 23,618,675
Final Draft
Subject to Change
City of Signal Hill
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -30-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund

OPERATING REVENUES
Charges for services $ 6,218,378 $ 874,391
Other operating revenues 61,391 2,783
Total Operating Revenues 6,279,769 877,174

OPERATING EXPENSES
Personnel services 362,425 154,715
Contractual services 364,252 17,973
Supplies 1,721,056 58,813
Material and repairs 328,877 93,646
Utilities 209,344 313
Depreciation/amortization 855,411 183,669
Other 535,369 21,310
Total Operating Expenses 4,376,734 530,439
OPERATING INCOME 1,903,035 346,735

NONOPERATING REVENUES (EXPENSES)
Investment income 51,416 24,687
Interest expense (82,847) -
Total Nonoperating Revenues (Expenses) (31,431) 24,687
Income Before Transfers 1,871,604 371,422

TRANSFERS
Transfers in 148,445 -
Changes in Net Position 2,020,049 371,422
Net position, beginning of year 21,598,626 2,730,014
Net position, end of year $ 23,618,675 $ 3,101,436
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds $ (93,611) Change in Net Position of Business-Type Activity 1,926,438 $ Final Draft
Subject to Change
City of Signal Hill
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -31-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 6,301,572 $ -
Receipts from interfund services provided - 875,274
Payments to suppliers (3,158,124) (19,687)
Payments to employees (1,208,567) (191,199)
Net Cash Provided for Operating Activities 1,934,881 664,388

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Cash received from other funds 1,919,462 -
Net Cash Provided for Noncapital and
Related Financing Activities 1,919,462 -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition/construction of capital assets (1,018,201) (283,398) Principal paid (432,732) -
Interest paid (102,589) -
Net Cash Used for Capital and
Related Financing Activities (1,553,522) (283,398)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 51,416 24,687
Net Cash Provided for Investing Activities 51,416 24,687 Net increase in cash and cash equivalents 2,352,237 405,677 Cash and cash equivalents, beginning of year 3,441,366 1,898,478 Cash and cash equivalents, end of year $ 5,793,603 $ 2,304,155

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO

AMOUNTS REPORTED ON THE STATEMENT OF NET POSITION
Cash and investments $ 5,793,545 $ 2,304,155
Restricted cash and investments 58 -
Cash and Cash Equivalents at End of Fiscal Year $ 5,793,603 $ 2,304,155 Final Draft
Subject to Change
City of Signal Hill
Statement of Cash Flows, (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -32-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED FOR OPERATING ACTIVITIES
Operating income 1,903,035 $ 346,735 $
Depreciation/amortization 855,411 183,669
Change in assets, deferred outflows of resources, liabilities and deferred inflows of resources:
(Increase) decrease in assets:

Accounts receivable, net 21,803 (1,900)
Prepaid items - 36,726
Escrow deposits 135,938 -
Deferred outflows of resources (634,962) (29,721)
Increase (decrease) in liabilities:

Accounts payable (133,404) 135,642
Accrued liabilities 57,937 4,246
Refundable deposits (1,760) -
Compensated absences (10,722) (8,781)
Deferred inflows of resources (1,426,303) (62,822)
Net pension liability 1,235,334 68,867
Net OPEB liability (67,426) (8,273)
Net Cash Provided by Operating Activities 1,934,881 $ 664,388 $ Final Draft
Subject to Change
City of Signal Hill
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
The accompanying notes are an integral part of these financial statements. -33-
Successor
Agency to the
Signal Hill
Redevelopment Other
Agency to the Postemployment
Private-Purpose Benefit
Trust Fund Trust Fund
ASSETS
Cash and investments $ 6,512,242 $ 3,746,570
Restricted cash and investments 8,003,633 -
Accounts receivable - -
Capital assets:

Land 10,956,485 -
Total Assets 25,472,360 3,746,570

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding 429,025 -
Total Deferred Outflows of Resources 429,025 -

LIABILITIES
Accounts payable 2,813,678 -
Accrued liabilities 1,297,029 -
Accrued interest payable 353,658 -
Long-term liabilities:

Due within one year 6,400,000 -
Due in more than one year 21,498,224 -
Payable to the City of Signal Hill 9,192,507 -
Total Liabilities 41,555,096 -

NET POSITION (DEFICIT)
Held in Trust (15,653,711) -
Restricted for OPEB Trust - 3,746,570
Total Net Position $ (15,653,711) $ 3,746,570
Final Draft
Subject to Change
City of Signal Hill
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements. -34-
Successor
Agency to the
Signal Hill
Redevelopment Other
Agency to the Postemployment
Private-Purpose Benefit
Trust Fund Trust Fund

ADDITIONS
Distributions from County-administered Redevelopment Property Tax Trust Fund 13,290,768 $ - $
Contributions - employer - 880,746
Contributions - employee - 69,558
Investment earnings 113,528 337,516
Total Additions 13,404,296 1,287,820

DEDUCTIONS
Personnel services 331,614 807,014
Contractual services 13,465 -
Project costs 2,715,473 -
Interest 1,288,801 -
Administrative expenses - 10,893
Total Deductions 4,349,353 817,907
Change in Net Position 9,054,943 469,913
Net Position (Deficit), Beginning of Year (24,708,654) 3,276,657 Net Position (Deficit), End of Year $ (15,653,711) $ 3,746,570 Final Draft
Subject to Change

NOTES TO THE FINANCIAL STATEMENTS
Final Draft
Subject to Change
This page is intentionally left blank
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-35-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The reporting entity City of Signal Hill (the City) 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” cities.

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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-36-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) A) Reporting Entity, (Continued)
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 Financing Authority, Housing Authority, and Municipal Financing Authority are managed by employees of the City. A portion of the City's salary and overhead expenses is billed to the Authorities each year.  The City, Financing Authority, Housing Authority, and Municipal Financing Authority are financially interdependent.

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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-37-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) 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.

Governmental fund 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-38-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, (Continued)
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.

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 related 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-39-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, (Continued)
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.

D) Implementation of New Accounting Pronouncements
In May 2020, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 96 – Subscription Based Information Technology Arrangements: This Statement provides guidance on the accounting and financial reporting for subscriptionbased information technology arrangements (SBITAs) for government end users (governments). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.

The City adopted the requirements of the guidance effective July 1, 2022 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-40-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) 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, 2023, a decrease in fair value of $819,492 was recognized. Investment income (loss) includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of 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.

H) Capital Assets
Capital assets, which include land, site improvements, buildings and improvements, equipment and infrastructure assets, and leased assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Infrastructure assets consist of roads, bridges, trails, traffic signals and sewer lines. Capital assets are defined by the City as assets, with an initial cost of more than $5,000 and a useful life that is greater than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend 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
Vehicle and major equipment 3 to 15 years
Infrastructure 40 to 90 years
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-41-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) 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 6F and

17. 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-42-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) K) Leases, (Continued)
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.

L) Subscriptions
Lessee
The City is a lessee for noncancellable subscriptions. The City recognizes a subscription liability and an intangible right-to-use asset (subscription asset) in the governmental activities in the government-wide statement of net position. At the commencement of a lease, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date. Subsequently, the subscription asset is amortized on a straightline basis over its useful life.

The City monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

M) Employee Compensated Absences
Compensated absences are reported in governmental funds as a liability, only if they have 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-43-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) M) Employee Compensated Absences, (Continued)
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 cashout 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 yearend 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.

N) 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 CalPERS. 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.

O) OPEB
For purposes of measuring the net OPEB liability and deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan and additions to/deductions from the OPEB Plans' fiduciary net position have been determined on the same basis as they are reported by 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 liquidated from the General Fund. Investments are reported at fair value.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-44-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) P) 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.

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 then finally unassigned fund balance.

Q) 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-45-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) R) 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 as insurance expenditures when incurred.

S) 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 capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other liabilities that are attributable to the acquisition, construction, or improvement of those assets. If there are 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, 2023, net investment in capital assets, was determined as follows:

Governmental Business-Type
Activities Activity
Capital assets, net of accumulated depreciation
and amortization 106,396,109 $ 27,963,644 $
Less:

Bonds, net of unamortized premiums and discounts (7,773,965) (1,708,631) Leases payable (13,292,629) -
Subscriptions payable (1,936,175) (57,268)
Loan payable - (1,500,000)
Accounts payable related to capital assets (573,090) (139,348) Retentions payable related to capital assets (149,797) (19,552) Add Back:

Unamortized deferred loss amount on debt refunding - 41,168 Bond proceeds not available for capital purposes 145,024 - Total 82,815,477 $ 24,580,013 $
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-46-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) S) Net Position
 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 that does not meet the definition of "net investment in capital assets" or "restricted." T) 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.

U) 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 depreciation of its capital assets and the ultimate outcome of claims and judgments. Actual results could differ from those estimates and assumptions.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-47-
NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2023 are classified in the accompanying financial statements as follows:

Government- Fiduciary
wide Funds
Statement of Statement of
Net Position Net Position Total
Cash and investments $ 83,525,183 $ 10,258,812 $ 93,783,995 Restricted cash and investment 8,003,633 590 8,004,223
Total Cash and Investments 83,525,773 $ $ 18,262,445 $ 101,788,218 Cash and investments at June 30, 2023 consisted of the following:

Cash on hand $ 8,350
Deposits with financial institutions 5,593,177
Investments 96,186,691
Total Cash and Investments $ 101,788,218
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 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%
Municipal Obligations 5 years 30% 5%
Supranationals 5 years 30% 10%
Local Agency Investment Fund (LAIF) N/A None $75 million 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
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-48-
NOTE 2 CASH AND INVESTMENTS, (Continued)
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.

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.

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 Total or Less Months Months
Local Agency Investment Fund 59,448,514 $ 59,448,514 $ $ - -$ US Government Agency Securities 10,654,077 985,724 1,954,029 7,714,324 Domestic Certificates of Deposit 9,417,043 1,950,560 1,418,869 6,047,614 Money Market Mutual Funds 5,759,454 5,759,454 - -
Municipal Obligations 460,101 - - 460,101
Supranationals 2,443,279 492,588 1,950,691.00 -
Held by Trustees:

Money Market Mutual Funds 8,004,223 8,004,223 - -
Total $ 76,641,063 96,186,691 $ $ 3,372,898 $ 16,172,730 Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-49-
NOTE 2 CASH AND INVESTMENTS, (Continued)
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, 2023 Rating AAA AA+ Rated
Local Agency Investment Fund $ 59,448,514 N/A $ - $ 59,448,514 - $ US Government Agency Securities 10,654,077 AA 918,299 9,735,778 - Domestic Certificates of Deposit 9,417,043 N/A - - 9,417,043 Money Market Mutual Funds 5,759,454 AAA - - 5,759,454
Municipal Obligations 460,101 A - 460,101 -
Supranationals 2,443,279 AA 2,443,279 - -
Held by Trustees:

Money Market Mutual Funds 8,004,223 AAA - - 8,004,223
Total $ 96,186,691 $ 3,361,578 $ 82,629,234 10,195,879 $ N/A - Not Applicable
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 had investments in Federal Home Loan Bank that represented 6.67% or more of total City's investments. All others issuers were individually less than 5% of the 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 requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government 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, 2023, the City deposits (bank balances) were insured by the Federal Deposit Insurance Corporation and the remaining balances were collateralized under California Law.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-50-
NOTE 2 CASH AND INVESTMENTS, (Continued)
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 prorata 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 $819,492 fair value adjustment recognized as of June 30, 2023:

Quoted Observable Unobservable
Prices Inputs Inputs
Total Level 1 Level 2 Level 3
U.S. Government Agency Securities 10,654,077 $ - $ 10,654,077 $ - $ Municipal Bonds 460,101 - 460,101 -
Supranationals 2,443,279 - 2,443,279 -
- 13,557,457 $ 13,557,457 $ - $
Local Agency Investment Fund* 59,448,514
Domestic Certificates of Deposit* 9,417,043
Money Market Mutual Funds* 5,759,454
Held by Trustees:

Money Market Mutual Funds* 8,004,223
Total 96,186,691 $
* Not subject to fair value measurement hierarchy.

The annual money-weighted rate of return on fiduciary OPEB plan investments (calculated as the internal rate of return on plan investments, net of plan investment expense) for the year ended June 30, 2023 was a negative 10.10%. The annual money-weighted rate of return expresses investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-51-
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023 was as follows:

Governmental Activities:

Balance at Balance at
June 30, 2022 Additions Deletions June 30, 2023
Capital assets, not being depreciated:

Land 35,499,457 $ 19,866 $ - $ 35,519,323 $
Construction in progress 3,997,493 3,868,576 (4,723,764) 3,142,305 Total capital assets, not
being depreciated 39,496,950 3,888,442 (4,723,764) 38,661,628 Capital assets, being depreciated and
amortized:

Structure and improvements 47,299,148 3,272,645 - 50,571,793 Equipment and furniture 3,134,679 2,011,471 (245,015) 4,901,135 Vehicles and major equipment 3,029,777 228,685 - 3,258,462 Right-to-use lease assets 13,751,032 - - 13,751,032
Right-to-use subscription assets - 2,195,174 - 2,195,174 Infrastructure 30,170,717 1,009,695 - 31,180,412
Total capital assets, being depreciated 97,385,353 8,717,670 (245,015) 105,858,008 Less accumulated depreciation and
amortization for:

Structure and improvements (12,042,641) (1,152,510) - (13,195,151) Equipment and furniture (2,538,102) (89,177) 245,015 (2,382,264) Vehicles and major equipment (2,153,721) (172,724) - (2,326,445) Right-to-use lease assets (399,116) (400,200) - (799,316) Right-to-use subscription assets - (393,556) - (393,556) Infrastructure (18,605,088) (421,707) - (19,026,795)
Total accumulated depreciation
and amortization (35,738,668) (2,629,874) 245,015 (38,123,527) Total capital assets, being
depreciated and amortized, net 61,646,685 6,087,796 - 67,734,481 Total capital assets, net $ 101,143,635 $ 9,976,238 $ (4,723,764) $ 106,396,109 Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-52-
NOTE 3 CAPITAL ASSETS, (Continued)
Business-Type Activities:

Balance at Balance at
June 30, 2022 Additions Deletions June 30, 2023
Capital assets, not being depreciated:

Land 4,427,416 $ - $ - $ 4,427,416 $
Construction in progress 3,652,825 948,363 (3,915,027) 686,161 Total capital assets, not
being depreciated 8,080,241 948,363 (3,915,027) 5,113,577 Capital assets, being depreciated and
amortized:

Water rights 1,215,186 - - 1,215,186
Reservoirs and tanks 12,174,543 - - 12,174,543
Wells 11,028,480 3,915,027 - 14,943,507
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
Right-to-use subscription assets - 69,838 69,838
Equipment and furniture 1,137,472 - - 1,137,472
Total capital assets, being depreciated 40,515,382 3,984,865 - 44,500,247 Less accumulated depreciation and
amortization for:

Water rights (940,873) (30,380) - (971,253)
Reservoirs and tanks (5,958,831) (264,214) - (6,223,045) Wells (2,105,671) (267,462) - (2,373,133)
Mains (6,804,135) (188,208) - (6,992,343)
Pumps (1,237,147) (27,665) - (1,264,812)
Fire hydrants (560,916) (731) - (561,647)
Meters (429,048) - - (429,048)
Services (965,378) (27,579) - (992,957)
Structures (721,959) (28,673) - (750,632)
Right-to-use subscription assets - (15,964) - (15,964)
Equipment and furniture (1,070,811) (4,535) - (1,075,346) Total accumulated depreciation
and amortization (20,794,769) (855,411) - (21,650,180)
Total capital assets, being
depreciated and amortized, net 19,720,613 3,129,454 - 22,850,067 Total capital assets, net $ 27,800,854 $ 4,077,817 $ (3,915,027) $ 27,963,644 Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-53-
NOTE 3 CAPITAL ASSETS, (Continued)
Depreciation/Amortization Expense
Depreciation/amortization expense was charged to City functions/programs as follows:

Governmental Activities:

General government $ 50,484
Parks, recreation, and library services 604,043
Police 534,741
Public works 41,474
Internal service fund depreciation charges
to programs 183,669
Allocated depreciation 1,414,411
Unallocated infrastructure depreciation 421,707
Total depreciation expense 1,836,118
Unallocated lease/subscription assets amortization 793,756 Total depreciation and amortization expense -
governmental activities $ 2,629,874
Business-Type Activity:

Water $ 855,411
NOTE 4 UNAVAILABLE REVENUES
At June 30, 2023, deferred inflows of resources - unavailable revenues, reported in the governmental fund financial statements, consisted of the following:

Capital Grants
Special Other Total
General Revenue Governmental Governmental
Fund Fund Funds Funds
Unavailable lease revenue $ 23,388,183 $ - $ - $ 23,388,183 Unavailable grant revenue - 201,682 185,000 386,682
Unavailable interest long-term
notes receivable 4,102,647 - 600 4,103,247
Total $ 27,490,830 $ 201,682 $ 185,600 $ 27,878,112
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-54-
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 9,192,507 $
For further discussion of the receivable due from the Successor Agency, see Note 17F.

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, 2023 was $9,340,365 (including accrued interest of $1,749,675). The City also set up an allowance for doubtful accounts, on this loan of$ 7,699,675.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-55-
NOTE 5 LONG-TERM RECEIVABLES, (Continued)
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, 2023, the City recognized $976,729 and $500,072 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.

NOTE 6 LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2023, was as follows:

Balance at Balance at Due Within
June 30, 2022 Additions Deletions June 30, 2023 One Year Governmental activities:

Other debt:
2018 Library Lease Revenue Bonds 8,205,000 $ $ (650,000) - $ $ 7,555,000 $ 660,000 Plus 2018 Original Issue Premium 242,014 - (23,049) 218,965 - Total Library Lease Revenue Bonds 8,447,014 (673,049) - 7,773,965 660,000 Other long-term liabilities:

Leases payable 13,535,982 (243,353) - 13,292,629 223,668 Subscriptions payable 2,195,174 - (258,999) 1,936,175 224,958 Compensated absences 958,309 627,460 (772,010) 813,759 406,880 Total Governmental-Type Activity 22,941,305 $ $ 2,822,634 $ (1,947,411) $ 23,816,528 $ 1,515,506 Business-Type activity:

Other debt:
2016 Water Revenue Refunding Bonds 2,075,000 $ $ (490,000) - $ $ 1,585,000 $ 510,000 Plus 2016 Original Issue Premium 175,686 - (52,055) 123,631 - Total Refunding Bonds Payable 2,250,686 (542,055) - 1,708,631 510,000 Other long-term liabilities:

WRD loan - direct borrowing 1,500,000 - - 1,500,000 50,000 Subscriptions payable - 69,838 (12,570) 57,268 17,445
Compensated absences 63,642 55,001 (65,723) 52,920 26,460 Total Business-Type Activity $ 3,814,328 $ 124,839 $ (620,348) $ 3,318,819 $ 603,905 Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-56-
NOTE 6 LONG-TERM LIABILITIES, (Continued)
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 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, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 740,000 143,450 883,450
2029-2033 4,060,000 351,849 4,411,849
Total 7,555,000 $ 1,252,737 $ 8,807,737 $
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 for 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
2024 $ 223,668 $ 269,878 $ 493,546
2025 231,703 265,244 496,947
2026 248,441 260,365 508,806
2027 259,707 255,141 514,848
2028 265,071 249,777 514,848
2029-2033 1,479,430 1,162,473 2,641,903
2034-2038 1,759,318 997,189 2,756,507
2039-2043 2,071,346 801,935 2,873,281
2044-2048 2,423,595 572,637 2,996,232
2049-2053 2,810,177 305,494 3,115,671
2054-2056 1,520,173 39,890 1,560,063
Total $ 13,292,629 $ 5,180,023 $ 18,472,652
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-57-
NOTE 6 LONG-TERM LIABILITIES, (Continued)
C) Subscriptions Payable
The City has subscriptions for various terms under long-term, noncancelable subscription agreements. The subscriptions expire at various dates through December 31, 2029. The net present values of the leases payable were determined using discount rates ranging from 1.7100% - 3.1440%. Monthly or annual subscription payments range from $1,232 - $333,489. The subscription provide for increases in future minimum monthly rental payments subject to stated increases.

Total future minimum lease payments under subscription agreements are as follows:

Year Ending
June 30, Principal Interest Total
2024 224,958 $ 6,732 $ 231,690 $
2025 364,816 99,730 464,546
2026 344,729 41,118 385,847
2027 332,778 30,973 363,751
2028 326,692 21,030 347,722
2029 342,202 10,759 352,961
Total 1,936,175 $ 210,342 $ 2,146,517 $
D) Compensated Absences
There is no fixed payment schedule for earned but unpaid compensated absences in both the governmental and business type activities.

E) 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, 2023, 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.

F) 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-58-
NOTE 6 LONG-TERM LIABILITIES, (Continued)
F) 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, 2023, 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, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 510,000 $ 63,200 $ 573,200
2025 530,000 42,800 572,800
2026 545,000 10,900 555,900
Total $ 1,585,000 $ 116,900 $ 1,701,900
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2023, is as follows:

Due From/To Other Funds
Receivable Fund Payable Fund Amount
General Fund Other governmental funds $ 326,940
$ 326,940
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, 2023, are as follows:

Receivable Fund Payable Fund Amount
General Fund Water Enterprise Fund $ 3,886,387
General Fund Housing Authority Special Revenue Fund 6,904 Other governmental funds Housing Authority Special Revenue Fund 1,633,786 $ 5,527,077
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-59-
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.

In fiscal year 2022-2023, the City entered into an interfund agreement with the Water Fund for $1,900,000 for the purpose of financing the Gundry Reservoir Improvement Project. lnterfund Transfers
Transfer In to Fund Transfers Out of Fund Amount
General Fund Capital Grants Special Revenue Fund $ (a) 2,904 Other governmental funds (b) 612,560
Housing Authority
Special Revenue Fund General Fund (c) 347,958
Capital Grants Special
Revenue Fund General Fund (a) 2,900
Capital Improvement
Capital Projects Fund General Fund (a) 446,433
Capital Grants Special Revenue Fund 1,561,518 (a)
Other governmental funds (a) 1,887,715
Water Enterprise Fund General Fund (b) 20,669
Other governmental funds (b) 127,776
Total $ 5,010,433
(b) To provide funds for ongoing city programs.

The purposes for significant interfund transfers made during the fiscal year ended June 30, 2023 were as follows:
(a) To provide funds for various capital projects in accordance with the City's capital improvement program.
(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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-60-
NOTE 8 INDIVIDUAL FUND DISCLOSURES
Expenditures Exceeding Appropriations
For the year ended June 30, 2023, expenditures exceeded appropriations in the following programs (the legal level of budgetary control):

Special revenue fund
Supplemental Law Enforcement 2,137 $
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 and the Prop 68 – Parks and Recreation Special Revenue Fund have deficit fund balances of $201,682 and $185,000, respectively at yearend 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 Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in six rate plans (three miscellaneous and three safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-61-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
A) General Information about the Pension Plans Plan Descriptions, (Continued) Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fulltime employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

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%@55 2%@55
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 1.42% 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 10.870% 9.120% 7.470%
Payment of Unfunded Liability 1,122,598 $ 19,905 $ 11,355 $ 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 50-63 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 25.640% 23.680% 13.660%
Payment of Unfunded Liability 1,448,766 $ 11,531 $ 10,820 $ Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-62-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
A) General Information about the Pension Plans Plan Descriptions, (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. For the year ended June 30, 2023, the City made contributions totaling $3,724,031 ($1,626,403 Miscellaneous Plan and $2,097,628 Safety Plan).

B) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, 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 16,286,350 $
Safety 20,672,704
Total Net Pension Liability 36,959,054 $
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, 2022, 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, 2021 rolled forward to June 30, 2022 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, 2021 and 2022 was as follows:

Miscellaneous Safety Total
Proportion - June 30, 2021 0.41623% 0.32940% 0.74563%
Proportion - June 30, 2022 0.34806% 0.30084% 0.64890%
Change - Increase (Decrease) -0.06817% -0.02856% -0.09673% Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-63-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
B) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, (Continued)
For the measurement period ended June 30, 2022, the City recognized pension credit of $579,344 ($557,748 Miscellaneous Plan and $21,597 Safety Plan). At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date 3,724,031 $ $ - Differences between expected and actual experience 1,182,630 (443,541) Changes in assumptions 3,753,311 -
Change in employer's proportion 705,990 -
Differences between the employer's contributions and the Employer's proportionate share of contributions (2,421,494) - Net differences between projected and actual
earnings on Plan investments 6,247,736 -
Total $ 15,613,698 $ (2,865,035)
The $3,724,031 ($1,626,403 Miscellaneous Plan and $2,097,628 Safety Plan) reported 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, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending
June 30, Amount
2024 $ 2,210,687
2025 1,883,362
2026 1,114,547
2027 3,816,036
2028 -
Thereafter -
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-64-
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
The collective total pension liability for the June 30, 2022 measurement period was determined by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary increases Varies by entry age and service
Mortality Rate Table Derived using CalPERS' Membership Data for all Funds. The mortality table was developed based on CalPERS-specific data.

The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

Post Retirement Benefit Increase Contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies.

All other actuarial assumptions used in the June 30, 2021, 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 CalPERS 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 CalPERS 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-65-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
B) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, (Continued)
Subsequent Events, (Continued
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 CalPERS 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 for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.

Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-66-
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)
The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

Assumed Real Return
Asset Years
Asset Class Allocation 1-10 1,2
Global equity - cap-weighted 30% 4.45%
Global equity non cap-weighted 12% 3.84%
Private equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market Debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
Total 100.00%
2 Figures are based on the 2021 Asset Liability Management 1 An expected inflation of 2.30% used for this period.

Change of Assumptions
Effective with the June 30, 2021, valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the longterm expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-67-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
B) Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions, (Continued)
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 current rate higher or lower:

Miscellaneous Safety Total
1% Decrease 5.90% 5.90%
Net Pension Liability $ 24,479,713 $ 30,004,111 $ 54,483,824 Current Discount Rate 6.90% 6.90%
Net Pension Liability $ 16,286,350 $ 20,672,704 $ 36,959,054 1% Increase 7.90% 7.90%
Net Pension Liability $ 9,545,246 $ 13,046,387 $ 22,591,633 Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

C) Payable to the Pension Plan
At June 30, 2023, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2023.

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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-68-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) A) Plan Description, (Continued)
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.
 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-69-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) A) Plan Description, (Continued)
 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 CalPERS. Membership in the plan consisted of the following, for the measurement period ended June 30, 2023:

Inactive employees or beneficiaries currently
receiving benefit payments 92
Inactive employees entitled to but not yet receiving
benefit payments 3
Active Plan members 91
Total 186
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, 2023, the measurement period, the City contributed $880,746 (retirement premiums paid on a pay-as-you-go basis of $659,041, contributions to the OPEB trust of $70,885, an estimated implicit rate subsidy of $147,973, plus nontrust administrative expenses of $2,847) and City employees contributed $69,558 to the OPEB trust.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-70-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) D) Net OPEB Liability
Actuarial Assumptions
For the measurement period ended June 30, 2023 (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, 2023 total OPEB liability was based on the following actuarial methods and assumptions:

Inflation 2.50%
Salary Increase 2.75%
Investment Rate of Return 5.75%
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 nearing a tipping point which will inevitably result in fundamental changes in health care finance and/or
delivery which will bring 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 CalPERS. CalPERS 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-71-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) D) Net OPEB Liability, (Continued)
Changes in Assumptions
For the measurement period ended June 30, 2023, the changes in assumptions were made related to a decrease in the discount rate to be updated due to investment policy changes.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the longterm 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
Global equity 60.0% 4.56%
Fixed income 38.0% 0.78%
Cash 2.0% -0.50%
Total 100.0%
Discount Rate
The discount rate used to measure the total OPEB liability was 5.75%. 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-72-
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
Balance at June 30, 2022 $ 12,933,090 $ 3,276,657 $ 9,656,433 Changes in the Fiscal Year:

Service Cost 220,191 - 220,191
Interest on the total OPEB liability 701,238 - 701,238
Changes of assumptions (333,930) - (333,930)
Contribution from the employer - 880,746 (880,746)
Contribution from the employees - 69,558 (69,558)
Net investment income - 337,516 (337,516)
Benefit payments (807,014) (807,014) -
Administrative expenses - (10,893) 10,893
Net Changes (219,515) 469,913 (689,428)
Balance at June 30, 2023 $ 12,713,575 $ 3,746,570 $ 8,967,005 There is sensitivity of the net OPEB liability due to changes in the discount rate and healthcare 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 10,395,534 $ $ 8,967,005 $ 7,764,929 Health-Care
Cost
1% Decrease Trend Rate 1% Increase

3.00% 4.00% 5.00%
Net OPEB liability $ 8,274,583 $ 8,967,005 $ 9,606,537
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-73-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) F) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the fiscal year ended Jun1e 30, 2023, the City recognized OPEB expense of $685,337. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience 97,614 $ (1,059,336) $ Changes of assumptions 1,991,750 (624,792)
Net differences between projected and actual
earnings on Plan investments 108,880 -
Total $ 2,198,244 $ (1,684,128)
Amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB expense as follows:

Deferred
Year Ending Inflows/Outflows
June 30, of Resources
2024 $ 7,992
2025 14,651
2026 122,660
2027 38,332
2028 202,403
Thereafter 128,078
NOTE 11 DEFINED CONTRIBUTION 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. Contributions of $8,113 were made to these plans during the current fiscal year.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-74-
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 to 3% of middle management's compensation. Total matching contributions made by the City totaled $52,968 for the fiscal year ended June 30, 2023.

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.

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Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-75-
NOTE 13 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The various fund balance classifications as of June 30, 2023 were as follows:

Housing Capital Capital
Authority Grants Improvement
Special Special Capital Other
Revenue Revenue Projects Governmental
General Fund Fund Fund Funds
Nonspendable:

Receivable due from
Successor Agency, net of
unavailable interest revenue 5,089,860 $ $ - -$ $ - $ - Prepaid items 65,587 - - - -
Leases receivable, net of
unavailable revenues 986,777 - - - -
Advances to other funds 3,893,291 - - - -
Land and improvements
held for resale, net 425,001 - - - -
Total 10,460,516 - - - -
Restricted for:

Low and moderate
income housing 6,475,643 - - - -
Development - - - - 2,799,027
Transportation - - - - 4,754,906
Capital improvements - - - 400,002 2,709,561
Housing - - - - -
Total 6,475,643 - - 400,002 10,263,494
Committed for:

Debt service 1,581,093 - - - -
Economic uncertainty 5,173,093 - - - -
Building and land acquisition 2,957,325 - - - -
Equipment replacement 43,748 - - - -
Capital improvements 4,529,885 - - - -
Insurance premium increases 828,372 - - - -
CalPERS rate increases 3,237,225 - - - -
OPEB future costs 1,521,444 - - - -
Park expansion 741,121 - - - -
Police radio/system reserve 1,312,518 - - - -
Police - general reserve 66,336 - - - -
Library expansion 2,624,322 - - - -
100th anniversary 100,019 - - - -
General Plan 340,573 - - - -
Economic development 1,208,150 - - - -
Workforce Innovation 681,300 - - - -
NPDES issues 1,456 - - - -
Total 26,947,980 - - - -
Unassigned 27,171,239 (201,682) - - (185,000)
Total $ 64,579,735 $ 6,475,643 $ (201,682) $ 400,002 $ 10,078,494 Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-76-
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 California 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 selfinsurance, 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
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NOTE 14 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, (Continued) B) Primary Self-insurance Programs of the Insurance Authority, (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 2022-23 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 $5 million to $10 million are pooled among members.

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 $89,969,188. 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 $59,489,335. 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.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-78-
NOTE 14 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY, (Continued) 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 2022-23.

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 such claims would be adequately covered by deposits in a pooled insurance authority and 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 granter 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 2022-23, 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 2022-23, the City expended $272,413 in parks development fees, $79,920 in traffic impact fees and $0 in water development fees. At June 30, 2023, the fund balances for the Parks Development Impact Fund was $965,608, for the, Traffic Impact Fund was $841,952 and for the Water Development Impact Fund was $241,053.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
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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, 2023, the City abated local sales tax totaling $2,974,092.

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, 2023 was as follows:

Balance at Balance at
June 30, 2022 Additions Deletions June 30, 2023
Capital assets, not
being depreciated:

Land $ 10,956,485 $ - $ 10,956,485 - $
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-80-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2023 was as follows:

Balance at Balance at Due Within
June 30, 2022 Additions Deletions June 30, 2023 One Year Other debt:

Bonds payable:
2006 TABs $ 10,285,000 $ (325,000) - $ $ 9,960,000 $ 350,000 2011 Tax Allocation Parity Bonds 3,640,000 (710,000) - 2,930,000 760,000 2015 Refunding TABs Series A 4,765,000 (2,330,000) - 2,435,000 2,435,000 2015 Refunding TABs Series B 1,230,000 (110,000) - 1,120,000 110,000 2017 Refunding TABs 13,085,000 (2,610,000) - 10,475,000 2,745,000 Less Original Issuance Discounts (56,083) - 14,495 (41,588) - Add Premium on Bonds 1,614,524 (594,712) - 1,019,812 -
Total Bonds Payable 34,563,441 (6,665,217) - 27,898,224 6,400,000 Direct borrowings:

Loan payable to the City of
Signal Hill 10,779,585 152,712 (1,739,790) 9,192,507 -
Total Long-Term Liabilities $ 45,343,026 $ 152,712 $ (8,405,007) $ 37,090,731 $ 6,400,000 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, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 9,960,000 $ 1,434,350 $ 11,394,350 $
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-81-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
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.

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, 2023, this reserve requirement was met.

The annual requirements to amortize outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 $ 2,930,000 $ 413,000 $ 3,343,000
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-82-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
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 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 (iii) provide for the costs of issuing the Bonds. The 2015 A Bonds were issued at a premium 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.

The annual requirements to amortize outstanding bond indebtedness as of June 30, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 2,435,000 $ 60,875 $ 2,495,875
Totals $ 2,435,000 $ 60,875 $ 2,495,875
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-83-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
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 refinance the Agency's outstanding 2003 D Bonds in the amount of $1,980,000, 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 1.00% 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, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 110,000 $ 33,213 $ 143,213
2025 1,010,000 15,781 1,025,781
Totals $ 1,120,000 $ 48,994 $ 1,168,994
Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-84-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (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 (ii) 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, 2023, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 10,475,000 $ 994,775 $ 11,469,775 $
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 interest rate of 3% per annum since inception. The balance as of June 30, 2023, including $4,102,108 of accrued interest, is $9,192,507.

Final Draft
Subject to Change
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2023
-85-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
G) Spring Street Corridor Joint Powers Authority
The City and former Agency entered into a joint powers agreement with the City of Long Beach and the former Long Beach Redevelopment Agency on January 11, 1995. The purpose of this agreement was to create a joint power authority (Authority) pursuant to 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, 2023, there was $1,297,029 due under this agreement, which is reported as a current liability.

Final Draft
Subject to Change
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Final Draft
Subject to Change

REQUIRED SUPPLEMENTARY INFORMATION
Final Draft
Subject to Change
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Final Draft
Subject to Change
City of Signal Hill
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023
-86-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Property taxes $ 2,263,075 $ 2,263,075 $ 2,695,267 $ 432,192 Sales and use tax 22,102,745 22,102,745 26,461,978 4,359,233 Other taxes 1,607,758 1,607,758 2,162,564 554,806
Licenses and permits 777,698 777,698 809,142 31,444
Intergovernmental revenues 59,392 59,392 93,174 33,782
Charges for services 1,187,726 1,298,301 1,591,146 292,845 Fines and forfeitures 220,000 220,000 149,165 (70,835)
Investment income (loss) 1,060,829 1,060,829 2,001,124 940,295 Other revenue 304,711 304,711 789,007 484,296
Total Revenues 29,583,934 29,694,509 36,752,567 7,058,058

EXPENDITURES
General government:

City Council 277,426 287,291 248,089 39,202
City Treasurer 8,190 8,190 5,365 2,825
City Clerk 254,224 254,224 163,172 91,052
Economic development 991,096 991,096 376,592 614,504
Executive administration 999,267 999,267 869,163 130,104 Communication/ public relations 305,625 305,625 248,932 56,693 Personnel services 585,508 585,508 503,406 82,102
Support services 2,389,552 3,111,884 2,699,685 412,199
Management information services 100,310 100,310 59,488 40,822 Fiscal services 938,192 938,192 887,147 51,045
Total General Government 6,849,390 7,581,587 6,061,039 1,520,548 Parks, recreation, and library services:

Library programs and services 703,512 777,512 665,548 111,964 Community support and services 1,087,829 1,087,829 894,495 193,334 Recreation 804,060 804,060 724,906 79,154
Total Parks, Recreation, and Library Services 2,595,401 2,669,401 2,284,949 384,452 Police:

Community outreach 47,858 47,858 37,762 10,096
Patrol services 6,362,502 6,404,022 5,404,602 999,420
Investigative services 1,460,697 1,470,361 1,417,751 52,610 Police support services 2,152,081 2,154,980 1,791,618 363,362 Communications 1,099,877 1,102,293 939,650 162,643
Records 506,900 506,900 472,947 33,953
Emergency and disaster services 60,917 60,917 4,784 56,133 Total Police 11,690,832 11,747,331 10,069,114 1,678,217 Final Draft
Subject to Change
City of Signal Hill
Budgetary Comparison Schedule, (Continued)
General Fund
For the Year Ended June 30, 2023
-87-
Budgeted Amounts Variance with
Original Final Actual Final Budget
EXPENDITURES (Continued)
Community development:

Planning services $ 638,310 $ 728,310 $ 522,242 $ 206,068 Neighborhood enhancement 208,351 208,351 149,235 59,116 Building and safety 282,579 364,885 280,002 84,883
Oil field services 198,351 198,351 176,130 22,221
Total Community Development 1,327,591 1,499,897 1,127,609 372,288 Public works:

Engineering and project services 1,133,707 1,187,849 960,466 227,383 Building maintenance 1,154,924 1,146,796 1,116,634 30,162 Environmental programs 756,182 756,182 552,488 203,694
Park maintenance 1,241,128 1,338,331 1,126,297 212,034
Street maintenance operations 1,620,833 1,620,833 1,452,071 168,762 Total Public Works 5,906,774 6,049,991 5,207,956 842,035 Capital outlay 2,252,822 4,799,496 4,359,394 440,102
Debt service 1,638,483 1,638,483 1,638,483 -
Total Expenditures 32,261,293 35,986,186 30,748,544 5,237,642 Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,677,359) (6,291,677) 6,004,023 12,295,700

OTHER FINANCING SOURCES (USES)
Subscription acquisition - 2,195,174 2,195,174 -
Transfers in 979,980 979,980 615,464 (364,516)
Transfers out (1,203,990) (1,203,990) (817,960) 386,030 Total Other Financing Sources (Uses) (224,010) 1,971,164 1,992,678 21,514 Net Change in Fund Balance (2,901,369) (4,320,513) 7,996,701 12,317,214 Fund Balances, Beginning 56,583,034 56,583,034 56,583,034 - Fund Balances, Ending $ 53,681,665 $ 52,262,521 $ 64,579,735 $ 12,317,214 Final Draft
Subject to Change
City of Signal Hill
Budgetary Comparison Schedule
Housing Authority Special Revenue Fund
For the Year Ended June 30, 2023
-88-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Investment income $ 38,670 $ 38,670 $ 85,414 $ 46,744
Total Revenues 38,670 38,670 85,414 46,744

EXPENDITURES
Community development 7,000 7,000 1,025 5,975
Total Expenditures 7,000 7,000 1,025 5,975
Excess of Revenues Over
Expenditures 31,670 31,670 84,389 52,719

OTHER FINANCING SOURCES (USES)
Transfers in 235,000 235,000 347,958 112,958
Total Other Financing Sources (Uses) 235,000 235,000 347,958 112,958 Net Change in Fund Balance 266,670 266,670 432,347 165,677 Fund Balances, Beginning 6,043,296 6,043,296 6,043,296 - Fund Balances, Ending $ 6,309,966 $ 6,309,966 $ 6,475,643 $ 165,677 Final Draft
Subject to Change
City of Signal Hill
Budgetary Comparison Schedule
Capital Grants Special Revenue Fund
For the Year Ended June 30, 2023
-89-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 2,229,286 $ 2,229,286 $ 2,817,566 $ 588,280 Total Revenues 2,229,286 2,229,286 2,817,566 588,280

OTHER FINANCING SOURCES (USES)
Transfers in - - 2,900 2,900
Transfers out (1,329,286) (1,329,286) (1,564,422) (235,136) Total Other Financing Sources (Uses) (1,329,286) (1,329,286) (1,561,522) (232,236) Net Change in Fund Balance 900,000 900,000 1,256,044 356,044 Fund Balances (Deficit), Beginning (1,457,726) (1,457,726) (1,457,726) - Fund Balances (Deficit), Ending $ (557,726) $ (557,726) $ (201,682) $ 356,044 Final Draft
Subject to Change
City of Signal Hill
Notes to Required Supplementary Information
June 30, 2023
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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 general operation of the City. The operating budget includes proposed expenditures and the means of financing them.
2) Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budget amounts 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, 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.

Final Draft
Subject to Change
City of Signal Hill
Schedule of Proportionate Share of the Net Pension Liability - Miscellaneous Last Ten Fiscal Years*
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Measurement Period
Plan's Proportion
of the Net Pension
Liability
Plan's
Proportionate
Share of the Net
Pension Liability
Plan's
Covered
Payroll
Plan's
Proportionate
Share of the Net
Pension Liability
as a Percentage
of Covered
Payroll
Proportionate
Share of the
Fiduciary Net
Position as a
Percentage of the
Plan's Total
Pension Liability
Plan's
Proportionate
Share of
Aggregate
Employer
Contributions
June 30, 2014 0.13408% $ 8,343,258 $ 4,623,297 180.46% 79.79% $ 890,524 June 30, 2015 0.12534% 8,603,439 4,171,972 206.22% 79.72% 1,169,609 June 30, 2016 0.31694% 11,009,933 4,769,466 230.84% 75.87% 1,233,606 June 30, 2017 0.32027% 12,625,288 4,782,533 263.99% 73.31% 1,377,053 June 30, 2018 0.32748% 12,213,091 4,746,775 257.29% 75.26% 1,452,707 June 30, 2019 0.32748% 13,113,924 4,924,328 266.31% 75.26% 1,621,472 June 30, 2020 0.33135% 13,976,419 4,955,620 282.03% 74.36% 1,810,932 June 30, 2021 0.41623% 7,903,332 4,799,168 164.68% 86.12% 1,928,023 June 30, 2022 0.34806% 16,286,350 5,200,981 313.14% 72.90% 2,272,895 * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.

Notes to Schedule:
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

Final Draft
Subject to Change
City of Signal Hill
Schedule of Contributions - Miscellaneous
Last Ten Fiscal Years*
-92-
Fiscal Year Ended
Contractually
Required
Contribution
(Actuarially
Determined)
Contributions in
Relation to the
Actuarially
Determined
Contributions
Contribution
Deficiency (excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
June 30, 2015 $ 673,607 $ (673,607) $ - $ 4,171,972 16.15% June 30, 2016 913,915 (913,915) - 4,769,466 19.16%
June 30, 2017 1,001,003 (1,001,003) - 4,782,533 20.93%
June 30, 2018 1,095,591 (1,095,591) - 4,746,775 23.08%
June 30, 2019 1,268,784 (1,268,784) - 4,924,328 25.77%
June 30, 2020 1,442,517 (1,442,517) - 4,955,620 29.11%
June 30, 2021 1,284,614 (1,284,614) - 4,799,168 26.77%
June 30, 2022 1,482,465 (1,482,465) - 5,200,981 28.50%
June 30, 2023 1,626,403 (1,626,403) - 5,612,123 28.98%
.

Notes to Schedule:

Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from

7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five-year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the

7.5 percent discount rate.

Final Draft
Subject to Change
City of Signal Hill
Schedule of Proportionate Share of the Net Pension Liability - Safety Last Ten Fiscal Years*
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Measurement Period
Plan's
Proportion of the
Net Pension
Liability
Plan's
Proportionate Share
of the Net Pension
Liability
Plan's
Covered
Payroll
Plan's Proportionate
Share of the Net
Pension Liability as a
Percentage of Covered
Payroll
Plan's Proportionate
Share of the Fiduciary
Net Position as a
Percentage of the
Plan's Total Pension
Liability
Plan's
Proportionate
Share of Aggregate
Employer
Contributions
June 30, 2014 0.16671% $ 10,373,619 $ 3,002,188 345.54% 77.88% $ 1,034,283 June 30, 2015 0.16949% 11,633,599 3,095,462 375.83% 75.88% 1,244,854 June 30, 2016 0.27528% 14,257,433 3,120,311 456.92% 72.69% 1,243,621 June 30, 2017 0.26478% 15,821,202 3,397,367 465.69% 73.31% 1,330,746 June 30, 2018 0.26514% 15,557,284 2,752,971 565.11% 75.26% 1,740,418 June 30, 2019 0.26113% 16,301,080 3,319,213 491.11% 75.26% 1,880,463 June 30, 2020 0.26785% 17,844,795 3,407,054 523.76% 71.00% 2,261,312 June 30, 2021 0.32940% 11,560,225 3,480,836 332.11% 81.71% 2,759,489 June 30, 2022 0.30084% 20,672,704 3,694,080 559.62% 69.41% 3,128,829 * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.

Notes to Schedule:
1 Proportion of the net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool.

Final Draft
Subject to Change
City of Signal Hill
Schedule of Contributions - Safety
Last Ten Fiscal Years*
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Fiscal Year Ended
Contractually
Required
Contribution
(Actuarially
Determined)
Contributions in
Relation to the
Actuarially
Determined
Contributions
Contribution
Deficiency
(excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
June 30, 2015 1,197,783 $ $ (1,197,783) $ - $ 3,095,462 38.69% June 30, 2016 1,407,461 (1,407,461) - 3,120,311 45.11%
June 30, 2017 1,531,100 (1,531,100) - 3,397,367 45.07%
June 30, 2018 1,677,943 (1,677,943) - 2,752,971 60.95%
June 30, 2019 1,372,345 (1,372,345) - 3,319,213 41.35%
June 30, 2020 1,614,253 (1,614,253) - 3,407,054 47.38%
June 30, 2021 1,753,821 (1,753,821) - 3,480,836 50.39%
June 30, 2022 1,932,188 (1,932,188) - 3,694,088 52.30%
June 30, 2023 2,097,628 (2,097,628) - 3,296,621 63.63%
.

Notes to Schedule:

Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2021 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Changes in Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and rampdown on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a fiveyear ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019.

There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to

7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Final Draft
Subject to Change
City of Signal Hill
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years*
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Fiscal Year End 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Measurement Date 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Total OPEB liability:

Service cost $ 220,191 $ 293,500 $ 270,003 $ 78,454 $ 76,354 $ 88,947 $ 86,566 $ 84,249 Interest on total OPEB liability 701,238 819,177 814,641 693,993 689,655 724,953 719,524 732,333 Changes of assumptions (333,930) (494,340) 350,078 3,078,833 - - - - Experience gains/(losses) (1,239,101) - - 171,290 (633,287) - - - Investment gains/(losses) - - - - 5,035 (5,035) - -
Benefit payments, including refunds
and the implied subsidy benefit payments (807,014) (798,430) (1,049,577) (1,040,518) (705,652) (729,067) (718,446) (697,696) Net Change in Total OPEB Liability (219,515) (1,419,194) 385,145 2,982,052 65,392 (553,489) 87,644 118,886 Total OPEB Liability, Beginning of Year 12,933,090 14,352,284 13,967,139 10,985,087 10,919,695 11,473,184 11,385,540 11,266,654 Total OPEB Liability, End of Year (a) 12,713,575 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 880,746 872,192 1,184,870 1,251,150 705,652 729,067 718,446 847,696 Contributions - employees 69,558 70,110 65,478 336,878 - - - - Net investment income (loss) 337,516 (496,520) 642,090 186,488 135,298 125,181 154,005 (31,941) Administrative expenses (10,893) (4,495) (18,569) (15,198) (12,204) (11,911) (11,107) (3,818) Benefit payments, including refunds
and the implied subsidy benefit payments (807,014) (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 469,913 (357,143) 824,292 718,800 123,092 113,270 142,898 114,241 Plan Fiduciary Net Position,- Beginning of Year 3,276,657 3,633,800 2,809,508 2,090,708 1,967,616 1,854,346 1,711,448 1,597,207 Plan Fiduciary Net Position, End of Year (b) 3,746,570 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) $ 8,967,005 $ 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 29.47% 25.34% 25.32% 20.12% 19.03% 18.02% 16.16% 15.03% Covered - employee payroll $ 8,619,268 $ 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 104.03% 115.61% 136.13% 135.68% 109.30% 112.45% 120.28% 124.29% Notes to Schedule:

Contributions are not based on a measure of pay. Therefore, covered - employee payroll is used.

Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

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% FYE June 30, 2023 - Discount rate was increased due to investment policy change to 5.75%. * Fiscal year 2016 was the first year of implementation; therefore, only eight years are shown.

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.

Final Draft
Subject to Change

SUPPLEMENTARY INFORMATION
Final Draft
Subject to Change
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Final Draft
Subject to Change
City of Signal Hill
Other Governmental Funds
Special Revenue Funds
-96-
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.

HCDA 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 0.5%, 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 0.5%, 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.

Final Draft
Subject to Change
City of Signal Hill
Other Governmental Funds
Special Revenue Funds, (Continued)
-97-
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 DUI 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.

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.

TDA Article III Fund - The TDA Article III Fund receives the City’s share of Transportation Development Act (TDA) Article III monies remitted by the Los Angeles County Metropolitan Transportation Authority. Funds are allocated annually on a per capita basis and may be used or placed on reserve to fund eligible projects.

Prop 68 – Parks and Recreation Fund - Prop 68 (the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018) authorized $4 billion in general obligation bonds for state and local parks, environmental protection projects, water infrastructure projects, and flood protection projects. These funds will be distributed through grant programs administered by a number of agencies and organizations, including the San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy and the Ocean Protection Council.

Final Draft
Subject to Change
City of Signal Hill
Combining Balance Sheet
Other Governmental Funds
June 30, 2023
-98-
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A
ASSETS
Cash and investments $ - $ 965,608 $ - $ 1,226,571 $ 896,508 Receivables:

Interest receivable - - 600 - -
Due from other governments - - 72,651 56,252 -
Loans - - 6,038 - -
Advances to other funds - 861,802 - - -
Restricted assets:

Cash and investments - - - - -
Total assets $ - $ 1,827,410 $ 79,289 $ 1,282,823 $ 896,508

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable $ - $ - $ 1,239 $ - $ 11,963
Accrued liabilities - - - - 1,046
Unearned revenues - 861,802 - - -
Due to other funds - - 71,413 - -
Total liabilities - 861,802 72,652 - 13,009
Deferred inflows of resources:

Unavailable revenues - - 600 - -
Total deferred inflows of resources - - 600 - -
Fund Balances (deficits):

Restricted for:

Development impact - 965,608 - -
Transportation - - - 1,282,823 883,499
Capital improvements - - 6,037 - -
Unassigned - - - - -
Total fund balances - 965,608 6,037 1,282,823 883,499
Total liabilities, deferred inflows of
resources and fund balances $ - $ 1,827,410 $ 79,289 $ 1,282,823 $ 896,508 Special Revenue Funds
Final Draft
Subject to Change
-99-
Air American Lighting
Pipeline Quality Water Traffic Transportation Rescue Plan and Removal Improvement Development Impact Proposition C Act Landscape $ 2,302,018 $ 119,676 $ 241,053 $ 841,952 $ 530,392 $ 2,514,286 $ 97,227 - - - - - - -
- 3,868 - - - - 856
- - - - - - -
- - 741,381 30,603 - - -
- - - - - - -
$ 2,302,018 $ 123,544 $ 982,434 $ 872,555 $ 530,392 $ 2,514,286 $ 98,083 $ - $ - $ - $ - $ - $ - $ 6,316
- - - - - - 341
- - 741,381 30,603 - 2,514,286 -
- - - - - - -
- - 741,381 30,603 - 2,514,286 6,657
- - - - - - -
- - - - - - -
- - 241,053 841,952 - - -
- 123,544 - - 530,392 - -
2,302,018 - - - - - 91,426
- - - - - - -
2,302,018 123,544 241,053 841,952 530,392 - 91,426
$ 2,302,018 $ 123,544 $ 982,434 $ 872,555 $ 530,392 $ 2,514,286 $ 98,083 Special Revenue Funds
Final Draft
Subject to Change
City of Signal Hill
Combining Balance Sheet, (Continued)
Other Governmental Funds
June 30, 2023
-100-
Supplemental Public
Law Safety State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M
ASSETS
Cash and investments 2,839 $ - $ 750,414 $ 301,846 $ 676,894 $ Receivables:

Interest receivable - - - - -
Due from other governments - 7,201 - - -
Loans - - - - -
Advances to other funds - - - - -
Restricted assets:

Cash and investments - - - - -
Total assets $ 2,839 $ 7,201 $ 750,414 $ 301,846 $ 676,894

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts payable $ 85 $ - -$ -$ -$
Accrued liabilities 2,754 2,420 - - -
Unearned revenues - - - - -
Due to other funds - 4,781 - - -
Total liabilities 2,839 7,201 - - -
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenues - - - - -
Total deferred inflows of resources - - - - -

FUND BALANCES
Restricted for:

Development impact - - 750,414 - -
Transportation - - - 301,846 676,894
Capital improvements - - - - -
Unassigned - - - - -
Total fund balances - - 750,414 301,846 676,894
Total liabilities, deferred inflows of
resources and fund balances $ 2,839 $ 7,201 $ 750,414 $ 301,846 $ 676,894 Special Revenue Funds
Final Draft
Subject to Change
-101-
Prop 68 -
Transportation Planning Civic Center TDA Article Parks and Measure R Grants RMRA (SB1) Measure W Phase II III Fund Recreation $ - 243,425 $ 666,482 $ 310,071 $ - $ -$ $ -
- - - - - - -
- 65,000 46,001 - - 746 185,000
- - - - - - -
- - - - - - -
- - - - 9 - -
$ 243,425 $ 65,000 $ 712,483 $ 310,071 $ 9 $ 746 $ 185,000 $ - $ - -$ $ - $ - -$ $ -
- - - - - - -
- - - - - - -
- 65,000 - - - 746 185,000
- 65,000 - - - 746 185,000
- - - - - - 185,000
- - - - - - 185,000
- - - - - - -
243,425 - 712,483 - - - -
- - - 310,071 9 - -
- - - - - - (185,000)
243,425 - 712,483 310,071 9 - (185,000)
$ 243,425 $ 65,000 $ 712,483 $ 310,071 $ 9 $ 746 $ 185,000 Special Revenue Funds
Final Draft
Subject to Change
City of Signal Hill
Combining Balance Sheet, (Continued)
Other Governmental Funds
June 30, 2023
-102-
Total
Other
Governmental
Funds
ASSETS
Cash and investments 12,687,262 $
Receivables:

Interest receivable 600
Due from other governments 437,575
Loans 6,038
Advances to other funds 1,633,786
Restricted assets:

Cash and investments 9
Total assets 14,765,270 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts payable 19,603 $
Accrued liabilities 6,561
Unearned revenues 4,148,072
Due to other funds 326,940
Total liabilities 4,501,176
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenues 185,600
Total deferred inflows of resources 185,600

FUND BALANCES
Restricted for:

Development impact 2,799,027
Transportation 4,754,906
Capital improvements 2,709,561
Unassigned (185,000)
Total fund balances 10,078,494
Total liabilities, deferred inflows of
resources and fund balances 14,765,270 $
Final Draft
Subject to Change
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds
For the Year Ended June 30, 2023
-103-
Special Revenue Funds
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A

REVENUES
Other taxes - $ - $ - $ - $ - $
Intergovernmental revenues - - 189,668 301,621 305,349
Charges for services - - - - 102
Investment income - 14,106 - 15,870 9,698
Total revenues - 14,106 189,668 317,491 315,149

EXPENDITURES
Current:

Police - - - - -
Community development - - 16,516 - 186,001
Public works - - - - -
Total expenditures - - 16,516 - 186,001
Excess of revenues over
(under) expenditures - 14,106 173,152 317,491 129,148

OTHER FINANCING SOURCES (USES)
Transfers out (203,780) (272,413) (72,320) (250,000) -
Total other financing sources (uses) (203,780) (272,413) (72,320) (250,000) - Net change in fund balances (203,780) (258,307) 100,832 67,491 129,148 Fund balance (deficit), beginning 203,780 1,223,915 (94,795) 1,215,332 754,351 Fund balance (deficit), ending $ - $ 965,608 $ 6,037 $ 1,282,823 $ 883,499 Final Draft
Subject to Change
-104-
Special Revenue Funds
Air American Lighting
Pipeline Quality Water Traffic Transportation Rescue Plan and Removal Improvement Development Impact Proposition C Act Landscape $ - $ - $ - $ - $ - $ - $ 84,684
- 15,309 - - 253,279 127,776 -
- - - - - - -
27,332 881 2,645 10,580 9,698 - 880
27,332 16,190 2,645 10,580 262,977 127,776 85,564
- - - - - - -
- - - - - - -
- - - - - - 41,215
- - - - - - 41,215
27,332 16,190 2,645 10,580 262,977 127,776 44,349
(37,919) - - (79,920) (424,400) (127,776) -
(37,919) - - (79,920) (424,400) (127,776) -
(10,587) 16,190 2,645 (69,340) (161,423) - 44,349
2,312,605 107,354 238,408 911,292 691,815 - 47,077
$ 2,302,018 $ 123,544 $ 241,053 $ 841,952 $ 530,392 $ - $ 91,426 Final Draft
Subject to Change
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds, (Continued)
For the Year Ended June 30, 2023
-105-
Special Revenue Funds
Supplemental Public
Law Safety State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M

REVENUES
Other taxes $ - $ - $ - -$ -$
Intergovernmental revenues 165,271 84,947 - - 214,822
Charges for services - - - - -
Investment income - - 8,817 3,527 7,935
Total revenues 165,271 84,947 8,817 3,527 222,757

EXPENDITURES
Current:

Police 165,271 84,947 - - -
Community development - - - - -
Public works - - - - -
Total expenditures 165,271 84,947 - - -
Excess of revenues over
(under) expenditures - - 8,817 3,527 222,757

OTHER FINANCING SOURCES (USES)
Transfers out - - - - (125,132)
Total other financing sources (uses) - - - - (125,132)
Net change in fund balances - - 8,817 3,527 97,625
Fund balance (deficit), beginning - - 741,597 298,319 579,269 Fund balance (deficit), ending $ - $ - $ 750,414 $ 301,846 $ 676,894 Final Draft
Subject to Change
-106-
Prop 68 -
Transportation Planning Civic Center TDA Article Parks and Measure R Grants RMRA (SB1) Measure W Phase II III Fund Recreation $ - - $ - $ 280,123 $ - $ - $ - $
208,091 189,904 262,521 - - 17,531 -
- - - - - - -
8,817 - 7,054 3,527 9 - -
198,721 208,091 269,575 283,650 9 17,531 -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
198,721 208,091 269,575 283,650 9 17,531 -
(645,510) - (98,209) (88,141) - (17,531) (185,000)
(645,510) - (98,209) (88,141) - (17,531) (185,000)
(446,789) 208,091 171,366 195,509 9 - (185,000)
690,214 (208,091) 541,117 114,562 - - -
$ 243,425 $ - $ 712,483 $ 310,071 $ 9 $ - $ (185,000)
Special Revenue Funds
Final Draft
Subject to Change
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds, (Continued)
For the Year Ended June 30, 2023
-107-
Total
Other
Governmental
Funds

REVENUES
Other taxes 364,807 $
Intergovernmental revenues 2,336,089
Charges for services 102
Investment income 131,376
Total revenues 2,832,374

EXPENDITURES
Current:

Police 250,218
Community development 202,517
Public works 41,215
Total expenditures 493,950
Excess of revenues over
(under) expenditures 2,338,424

OTHER FINANCING SOURCES (USES)
Transfers out (2,628,051)
Total other financing sources (uses) (2,628,051)
Net change in fund balances (289,627)
Fund balance (deficit), beginning 10,368,121
Fund balance (deficit), ending $ 10,078,494
Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Park Development Special Revenue Fund
For the Year Ended June 30, 2023
-108-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for services $ 269,869 $ 269,869 $ - $ (269,869) Investment income 6,016 6,016 14,106 8,090
Total Revenues 275,885 275,885 14,106 (261,779)

OTHER FINANCING SOURCES (USES)
Transfers out (200,000) (390,000) (272,413) 117,587
Total Other Financing Sources (Uses) (200,000) (390,000) (272,413) 117,587 Net Change in Fund Balance 75,885 (114,115) (258,307) (144,192) Fund Balances, Beginning 1,223,915 1,223,915 1,223,915 - Fund Balances, Ending $ 1,299,800 $ 1,109,800 $ 965,608 $ (144,192) Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
HCDA Grant Special Revenue Fund
For the Year Ended June 30, 2023
-109-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 107,502 $ 107,502 $ 189,668 $ 82,166 Total Revenues 107,502 107,502 189,668 82,166

EXPENDITURES
Current:

Community development 21,500 21,500 16,516 4,984
Total Expenditures 21,500 21,500 16,516 4,984
Excess of Revenues Over (Under)
Expenditures 86,002 86,002 173,152 87,150

OTHER FINANCING SOURCES (USES)
Transfers out (86,002) (86,002) (72,320) 13,682
Total Other Financing Sources (Uses) (86,002) (86,002) (72,320) 13,682 Net Change in Fund Balance - - 100,832 100,832
Fund Balances (Deficit), Beginning (94,795) (94,795) (94,795) - Fund Balances (Deficit), Ending $ (94,795) $ (94,795) $ 6,037 $ 100,832 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Special Gas Tax Special Revenue Fund
For the Year Ended June 30, 2023
-110-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 341,275 $ 341,275 $ 301,621 $ (39,654) Investment income 5,531 5,531 15,870 10,339
Total Revenues 346,806 346,806 317,491 (29,315)

OTHER FINANCING SOURCES (USES)
Transfers out (250,000) (250,000) (250,000) -
Total Other Financing Sources (Uses) (250,000) (250,000) (250,000) - Net Change in Fund Balance 96,806 96,806 67,491 (29,315) Fund Balances, Beginning 1,215,332 1,215,332 1,215,332 - Fund Balances, Ending $ 1,312,138 $ 1,312,138 $ 1,282,823 $ (29,315) Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Transportation Proposition A Special Revenue Fund
For the Year Ended June 30, 2023
-111-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 283,417 $ 283,417 $ 305,349 $ 21,932 Charges for services - - 102 102
Investment income 3,046 3,046 9,698 6,652
Total Revenues 286,463 286,463 315,149 28,686

EXPENDITURES
Current:

Community development 227,877 231,668 186,001 45,667
Total Expenditures 227,877 231,668 186,001 45,667
Net Change in Fund Balance 58,586 54,795 129,148 74,353 Fund Balances, Beginning 754,351 754,351 754,351 -
Fund Balances, Ending $ 812,937 $ 809,146 $ 883,499 $ 74,353 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Pipeline Removal Special Revenue Fund
For the Year Ended June 30, 2023
-112-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Investment income $ 11,649 $ 11,649 $ 27,332 $ 15,683
Total Revenues 11,649 11,649 27,332 15,683

OTHER FINANCING SOURCES (USES)
Transfers out (67,452) (67,452) (37,919) 29,533
Net Change in Fund Balance (55,803) (55,803) (10,587) 45,216 Fund Balances, Beginning 2,312,605 2,312,605 2,312,605 - Fund Balances, Ending $ 2,256,802 $ 2,256,802 $ 2,302,018 $ 45,216 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2023
-113-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 15,000 $ 15,000 $ 15,309 $ 309 Investment income 556 556 881 325
Total Revenues 15,556 15,556 16,190 634

OTHER FINANCING SOURCES (USES)
Transfers out (4,453) (4,453) - 4,453
Total Other Financing Sources (Uses) (4,453) (4,453) - 4,453 Net Change in Fund Balance 11,103 11,103 16,190 5,087
Fund Balances, Beginning 107,354 107,354 107,354 -
Fund Balances, Ending $ 118,457 $ 118,457 $ 123,544 $ 5,087 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Water Development Special Revenue Fund
For the Year Ended June 30, 2023
-114-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for services $ 1,369,588 $ 1,369,588 $ (1,369,588) - $ Investment income 1,164 1,164 2,645 1,481
Total Revenues 1,370,752 1,370,752 2,645 (1,368,107)
Net Change in Fund Balance 1,370,752 1,370,752 2,645 (1,368,107) Fund Balances, Beginning 238,408 238,408 238,408 -
Fund Balances, Ending $ 1,609,160 $ 1,609,160 $ 241,053 $ (1,368,107) Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Traffic Impact Special Revenue Fund
For the Year Ended June 30, 2023
-115-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for services $ 288,010 $ 288,010 $ - $ (288,010) Investment income 4,454 4,454 10,580 6,126
Total Revenues 292,464 292,464 10,580 (281,884)

OTHER FINANCING SOURCES (USES)
Transfers out (293,763) (293,763) (79,920) 213,843
Net Change in Fund Balance (1,299) (1,299) (69,340) (68,041) Fund Balances, Beginning 911,292 911,292 911,292 -
Fund Balances, Ending $ 909,993 $ 909,993 $ 841,952 $ (68,041) Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Transportation Proposition C Special Revenue Fund
For the Year Ended June 30, 2023
-116-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 235,087 $ 235,087 $ 253,279 $ 18,192 Investment income 2,081 2,081 9,698 7,617
Total Revenues 237,168 237,168 262,977 25,809

EXPENDITURES
Public works 5,000 5,000 - 5,000
Total Expenditures 5,000 5,000 - 5,000
Excess of Revenues Over (Under)
Expenditures 232,168 232,168 262,977 30,809

OTHER FINANCING SOURCES (USES)
Transfers out (430,056) (430,056) (424,400) 5,656
Total Other Financing Sources (Uses) (430,056) (430,056) (424,400) 5,656 Net Change in Fund Balance (197,888) (197,888) (161,423) 36,465 Fund Balances, Beginning 691,815 691,815 691,815 -
Fund Balances, Ending $ 493,927 $ 493,927 $ 530,392 $ 36,465 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
American Rescue Plan Act Special Revenue Fund
For the Year Ended June 30, 2023
-117-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 1,366,073 $ 1,366,073 $ 127,776 $ (1,238,297) Total Revenues 1,366,073 1,366,073 127,776 (1,238,297)

OTHER FINANCING SOURCES (USES)
Transfers out (2,025,717) (2,025,717) (127,776) 1,897,941 Net Change in Fund Balance (659,644) (659,644) - 659,644 Fund Balances, Beginning - - - -
Fund Balances (Deficit), Ending $ (659,644) $ (659,644) $ - $ 659,644 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Lighting and Landscape Special Revenue Fund
For the Year Ended June 30, 2023
-118-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Other taxes $ 58,667 $ 84,682 $ 84,684 $ 2
Investment income 186 186 880 694
Total Revenues 58,853 84,868 85,564 696

EXPENDITURES
Current:

Public works 54,673 84,676 41,215 43,461
Total Expenditures 54,673 84,676 41,215 43,461
Excess of Revenues Over (Under) 4,180 192 44,349 44,157 Expenditures
Fund Balances, Beginning 47,077 47,077 47,077 -
Fund Balances, Ending $ 51,257 $ 47,269 $ 91,426 $ 44,157 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Supplemental Law Enforcement Special Revenue Fund
For the Year Ended June 30, 2023
-119-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 163,134 $ 163,134 $ 165,271 $ 2,137 Total Revenues 163,134 163,134 165,271 2,137

EXPENDITURES
Current:

Police 163,134 163,134 165,271 (2,137)
Total Expenditures 163,134 163,134 165,271 (2,137)
Excess of Revenues Over (Under) - - - -
Expenditures
Fund Balances, Beginning - - - -
Fund Balances, Ending $ - $ - -$ $ -
Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Public Safety State Resources Special Revenue Fund
For the Year Ended June 30, 2023
-120-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 60,000 $ 114,800 $ 84,947 $ (29,853) Total Revenues 60,000 114,800 84,947 (29,853)

EXPENDITURES
Current:

Police 60,000 114,800 84,947 29,853
Total Expenditures 60,000 114,800 84,947 29,853
Net Change in Fund Balance - - - -
Fund Balances, Beginning - - - -
Fund Balances, Ending $ - $ - $ - $ -
Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Housing Impact Special Revenue Fund
For the Year Ended June 30, 2023
-121-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Investment income $ 3,821 $ 3,821 $ 8,817 $ 4,996
Total Revenues 3,821 3,821 8,817 4,996
Fund Balances, Beginning 741,597 741,597 741,597 -
Fund Balances, Ending $ 745,418 $ 745,418 $ 750,414 $ 4,996 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
MTA-STPL Grant Special Revenue Fund
For the Year Ended June 30, 2023
-122-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 34,680 $ 34,680 $ - $ (34,680) Investment income 1,526 1,526 3,527 2,001
Total Revenues 36,206 36,206 3,527 (32,679)

OTHER FINANCING SOURCES (USES)
Transfers out (288,255) (288,255) - 288,255
Net Change in Fund Balance (252,049) (252,049) 3,527 255,576 Fund Balances, Beginning 298,319 298,319 298,319 -
Fund Balances, Ending $ 46,270 $ 46,270 $ 301,846 $ 255,576 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Measure M Special Revenue Fund
For the Year Ended June 30, 2023
-123-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 199,824 $ 199,824 $ 214,822 $ 14,998 Investment income 827 827 7,935 7,108
Total Revenues 200,651 200,651 222,757 22,106

OTHER FINANCING SOURCES (USES)
Transfers out (365,227) (365,227) (125,132) 240,095
Net Change in Fund Balance (164,576) (164,576) 97,625 262,201 Fund Balances, Beginning 579,269 579,269 579,269 -
Fund Balances, Ending $ 414,693 $ 414,693 $ 676,894 $ 262,201 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Transportation Measure R Special Revenue Fund
For the Year Ended June 30, 2023
-124-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 176,316 $ 176,316 $ 189,904 $ 13,588 Investment income 3,102 3,102 8,817 5,715
Total Revenues 179,418 179,418 198,721 19,303

OTHER FINANCING SOURCES (USES)
Transfers out (445,461) (445,461) (645,510) (200,049)
Net Change in Fund Balance (266,043) (266,043) (446,789) (180,746) Fund Balances, Beginning 690,214 690,214 690,214 -
Fund Balances, Ending $ 424,171 $ 424,171 $ 243,425 $ (180,746) Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Planning Grants Special Revenue Fund
For the Year Ended June 30, 2023
-125-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 50,890 $ 50,890 $ 208,091 $ 157,201 Total Revenues 50,890 50,890 208,091 157,201

OTHER FINANCING SOURCES (USES)
Transfers out (50,890) (50,890) - 50,890
Net Change in Fund Balance - - 208,091 208,091
Fund Balances (Deficit), Beginning (208,091) (208,091) (208,091) - Fund Balances, Ending $ (208,091) $ (208,091) $ - $ 208,091 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
RMRA (SB1) Special Revenue Fund
For the Year Ended June 30, 2023
-126-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 264,806 $ 264,806 $ 262,521 $ (2,285) Investment income 3,032 3,032 7,054 4,022
Total Revenues 267,838 267,838 269,575 1,737

OTHER FINANCING SOURCES (USES)
Transfers out (216,300) (216,300) (98,209) 118,091
Net Change in Fund Balance 51,538 51,538 171,366 119,828 Fund Balances, Beginning 541,117 541,117 541,117 -
Fund Balances, Ending $ 592,655 $ 592,655 $ 712,483 $ 119,828 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Measure W Special Revenue Fund
For the Year Ended June 30, 2023
-127-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Other taxes $ 280,000 $ 280,000 $ 280,123 $ 123
Investment income - - 3,527 3,527
Total Revenues 280,000 280,000 283,650 3,650

OTHER FINANCING SOURCES (USES)
Transfers out (321,709) (321,709) (88,141) 233,568
Net Change in Fund Balance (41,709) (41,709) 195,509 237,218 Fund Balances, Beginning 114,562 114,562 114,562 -
Fund Balances, Ending $ 72,853 $ 72,853 $ 310,071 $ 237,218 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
TDA Article III Special Revenue Fund
For the Year Ended June 30, 2023
-128-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 10,945 $ 10,945 $ 17,531 $ 6,586 Investment income 33 33 - (33)
Total Revenues 10,978 10,978 17,531 6,553

OTHER FINANCING SOURCES (USES)
Transfers out (17,603) (17,603) (17,531) 72
Net Change in Fund Balance (6,625) (6,625) - 6,625
Fund Balances, Beginning - - - -
Fund Balances (Deficit), Ending $ (6,625) $ (6,625) $ - $ 6,625 Final Draft
Subject to Change
City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Prop 68 – Parks and Recreation Special Revenue Fund
For the Year Ended June 30, 2023
-129-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues $ 185,000 $ 185,000 $ - $ (185,000) Total Revenues 185,000 185,000 - (185,000)

OTHER FINANCING SOURCES (USES)
Transfers out (185,000) (185,000) (185,000) -
Net Change in Fund Balance - (185,000) - (185,000)
Fund Balances, Beginning - - - -
Fund Balances (Deficit), Ending $ - $ (185,000) - $ $ (185,000) Final Draft
Subject to Change
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Final Draft
Subject to Change

STATISTICAL SECTION
Final Draft
Subject to Change
This page intentionally left blank
Final Draft
Subject to Change
City of Signal Hill
Description of Statistical Section Contents
-130-
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 Page

Financial Trends 131-138
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.

Revenue Capacity 139-141
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

Debt Capacity 142-145
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.

Demographic and Economic Information 146-147
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information 148-151
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.

Final Draft
Subject to Change
City of Signal Hill
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-131-
2014 2015 2016 2017
Governmental Activities:

Net investment in capital assets 47,543 $ 48,407 $ 67,914 $ 73,428 $ Restricted 16,927 17,086 23,481 19,781
Unrestricted 30,728 13,095 7,115 13,113
Total governmental activities net position $ 95,198 $ 78,588 $ 98,510 $ 106,322 Business-type Activities:

Net investment in capital assets $ 15,821 $ 16,003 $ 18,952 $ 23,636 Unrestricted 4,660 3,110 1,958 (2,316)
Total business-type activities net position $ 20,481 $ 19,113 $ 20,910 $ 21,320 Primary Government:

Net investment in capital assets $ 63,364 $ 64,410 $ 86,866 $ 97,064 Restricted 16,927 17,086 23,481 19,781
Unrestricted 35,388 16,205 9,073 10,797
Total primary government net position $ 115,679 $ 97,701 $ 119,420 $ 127,642 Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
-132-
2018 2019 2020 2021 2022 2023
$ 83,153 $ 104,567 $ 77,654 76,772$ 78,459$ $ 82,815
19,552 18,360 16,784 17,427 17,132 15,748
11,950 3,243 14,553 20,414 28,649 42,110
$ 114,655 126,170$ 108,991$ 114,613$ 124,240$ $ 140,673 $ 23,536 23,331$ 22,655$ 22,684$ 23,727$ $ 24,580
(2,572) (2,751) (2,342) (2,083) (2,034) (961)
$ 20,964 20,580$ 20,313$ 20,601$ 21,693$ $ 23,619
$ 106,689 127,898$ $ 100,309 $ 99,456 $ 102,186 $ 107,395 19,552 18,360 16,784 17,427 17,132 15,748
9,378 12,211 492 18,331 26,615 41,149
$ 135,619 146,750$ 129,304$ 135,214$ 145,933$ $ 164,292 Final Draft
Subject to Change
City of Signal Hill
Changes in Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-133-
Fiscal Year Ending June 30,
2014 2015 2016 2017
Expenses
Governmental activities:

General government 5,556 $ $ 4,149 $ 3,843 $ 4,633
Parks, recreation, and library services 1,319 1,251 1,505 1,362 Police 8,220 8,254 9,350 9,576
Community development 992 942 868 858
Public works 4,142 4,369 4,256 4,605
Unallocated infrastructure depreciation 614 551 551 645 Interest on long-term debt - - - -
Total governmental activities expenses 20,843 19,516 20,373 21,679 Business-type activities - water 4,531 4,424 4,145 5,312 Total primary government expenses $ 25,374 $ 23,940 $ 24,518 $ 26,991 Program Revenues
Governmental activities:

Charges for services:

General government $ 227 $ 201 $ 175 $ 178
Parks, recreation, and library services 115 192 212 191 Police 297 282 270 288
Community development 368 537 584 514
Public works 431 437 422 461
Operating grants 1,619 1,339 9,313 850
Capital grants and contributions 2,369 2,433 2,020 9,188 Total governmental activities program revenues 5,426 5,421 12,996 11,670 Business-type activities:

Charges for services 3,734 3,760 3,400 3,785
Capital grants and contributions - - 999 1,927
Total business-type activities program revenues 3,734 3,760 4,399 5,712 Total primary government program revenues $ 9,160 $ 9,181 $ 17,395 $ 17,382 Net (Expense)/ Revenue
Governmental activities $ (15,417) $ (14,095) (7,377) $ (10,009) Business-type activities (797) (664) 254 400
Total primary government net expenses $ (16,214) $ (14,759) $ (7,123) $ (9,609) General Revenues and Other Changes
in Net Position
Governmental activities:

Taxes
Property 1,700 $ $ 1,797 $ 1,916 $ 1,802
Franchise 603 773 549 735
Other 1,609 1,462 1,459 874
Intergovernmental - sales and use tax 14,574 11,567 14,588 14,597 Investment income 850 787 955 442
Unrestricted grants and contributions 66 2,048 46 311
Gain (loss) on disposition of assets - - - 14
Transfers (1) (426) (1,679) -
Extraordinary item - - - -
Total governmental activities 19,401 18,008 17,834 18,775 Business-type activities:

Investment income (loss) 53 51 21 10
Transfers 1 426 1,679 -
Total business-type activities 54 477 1,700 10
Total primary government $ 19,455 $ 18,485 $ 19,534 $ 18,785 Change in net position
Governmental activities $ 3,984 $ 3,913 $ 10,457 $ 8,766 Business-type activities (743) (187) 1,954 410
Total primary government $ 3,241 $ 3,726 $ 12,411 $ 9,176 Final Draft
Subject to Change
-134-
Fiscal Year Ending June 30,
2018 2019 2020 2021 2022 2023
$ 5,146 $ 4,074 $ 5,787 $ 6,045 $ 7,093 $ 6,221
1,596 1,991 1,757 1,996 2,619 2,535
10,564 11,504 11,817 11,009 11,054 9,014
963 1,434 989 1,270 1,359 1,257
4,927 4,433 4,787 4,859 4,633 4,750
639 401 394 394 422 422

93.00 221.00 219.00 217.00 492.00 494
23,928 24,058 25,750 25,790 27,672 24,693
4,846 5,056 4,665 5,263 5,747 4,553
$ 28,774 $ 29,114 $ 30,415 $ 31,053 $ 33,419 $ 29,246
$ 216 $ 331 $ 402 $ 90 $ 79 $ 69
203 173 118 85 135 173
250 252 255 169 179 193
567 430 418 553 601 637
790 703 824 1,006 1,215 1,211
1,199 2,349 1,524 1,819 2,254 2,030
4,586 10,219 730 938 2,828 2,090
7,811 14,457 4,271 4,660 7,291 6,403
4,420 4,335 4,574 5,548 6,208 6,280
42 239 114 - - -
4,462 4,574 4,688 5,548 6,208 6,280
$ 12,273 $ 19,031 $ 8,959 $ 10,208 $ 13,499 $ 12,683
$ (16,117) $ (9,601) $ (21,479) $ (21,130) $ (20,381) $ (18,290) (384) (482) 23 285 461 1,727
$ (16,501) $ (10,083) $ (21,456) $ (20,845) $ (19,920) $ (16,563) $ 2,248 $ 2,189 $ 2,330 $ 2,801 $ 2,619 $ 2,972
487 901 887 982 975 1,073
926 1,053 836 920 1,074 1,369
14,484 15,789 16,834 20,268 24,786 26,462
961 1,788 1,977 1,346 707 2,208
456 94 183 435 553 789
- - - - - -
- (30) 354 - (707) (148)
4,369 - - - - -
23,931 21,784 23,401 26,752 30,007 34,725
28 68 64 3 (76) 51
- 30 (354) - 707 148
28 98 (290) 3 631 199
$ 23,959 $ 21,882 $ 23,111 $ 26,755 $ 30,638 $ 34,924
$ 7,814 $ 12,183 $ 1,922 $ 5,622 $ 9,626 $ 16,434
(356) (384) (267) 288 1,092 1,926
$ 7,458 $ 11,799 $ 1,655 $ 5,910 $ 10,718 $ 18,360
Final Draft
Subject to Change
City of Signal Hill
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-135-
Fiscal Year Ending June 30,
2014 2015 2016 2017
General Fund
Nonspendable $ 7,695 $ 7,768 $ 8,430 $ 12,126
Restricted - 13 13 13
Committed 12,662 20,588 14,160 20,630
Unassigned 7,611 1,278 12,227 2,226
Total General Fund 27,968 29,647 34,830 34,995
All Other Governmental Funds
Nonspendable 5,131 4,414 4,129 347
Restricted 11,712 12,574 19,360 19,762
Unassigned (2,363) (3,193) (2,555) (891)
Total All other Governmental Fund 14,480 13,795 20,934 19,218 Total All Governmental Funds $ 42,448 $ 43,442 $ 55,764 $ 54,213 Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
-136-
Fiscal Year Ending June 30,
2018 2019 2020 2021 2022 2023
$ 14,722 $ 11,955 $ 11,892 $ 2,717 $ 3,132 $ 10,461
- - - - - -
16,553 15,330 16,209 24,953 30,349 26,948
9,159 10,586 14,151 20,356 23,102 27,171
40,434 37,871 42,252 48,026 56,583 64,580
- - - - - -
28,136 18,359 16,783 17,427 17,114 17,139
(2,294) (4,259) - (37) (1,760) (387)
25,842 14,100 16,783 17,390 15,354 16,752
$ 66,276 $ 51,971 $ 59,035 $ 65,416 $ 71,937 $ 81,332
Final Draft
Subject to Change
City of Signal Hill
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-137-
Fiscal Year Ending June 30,
2014 2015 2016 2017
Revenues
Taxes 18,862 $ 15,811 $ 21,394$ 18,701 $
Licenses and permits 360 411 370 374
Intergovernmental 1,294 1,367 3,591 8,809
Charges for services 829 739 762 759
Fines and forfeitures 298 301 326 289
Investment income 934 826 778 830
Other 113 2,786 652 411
Total Revenues 22,690 22,241 27,873 30,173
Expenditures
General government 5,456 4,476 3,940 4,879
Parks, recreation, and library services 1,320 1,257 1,472 1,576 Police 8,147 8,172 9,270 9,152
Community development 995 952 962 854
Public works 3,910 3,627 3,883 4,046
Capital outlay 2,485 869 3,259 7,726
Debt Service:

Principal retirement - - 14 -
Interest - - 3 -
Other debt service - - - 17
Total Expenditures 20,697 20,969 22,803 28,250
Excess of revenues over/(under) expenditures 1,993 1,272 5,070 1,923 Other Financing Sources/(Uses)
Transfers in 3,670 1,694 1,236 1,687
Transfers out (3,671) (2,120) (2,915) (1,687)
Other - 76 7,578 -
Total other financing sources (350) (1) 5,899 -
Extraordinary Item - - - -
Net change in fund balances $ 1,992 $ 10,969 922 $ 1,923 $ Capitalized capital outlay $ 1,076 $ 1,788 2,985$ 7,016$ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.1% Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
-138-
Fiscal Year Ending June 30,
2018 2019 2020 2021 2022 2023
$ 19,800 19,444 $ $ 24,805 20,920 $ 29,240 $ 31,685 $
429 580 635 679 763 809
5,440 9,202 6,128 2,508 3,028 5,247
1,066 1,895 1,076 1,390 2,116 1,591
312 423 328 175 144 149
1,177 1,984 1,995 1,111 224 2,218
417 78 175 435 512 789
28,285 33,962 31,257 31,103 36,027 42,488
4,409 4,715 5,291 5,741 5,591 6,061
1,592 1,727 1,574 1,378 2,019 2,285
9,412 9,514 10,056 10,245 9,346 10,320
948 1,431 1,021 1,273 1,365 1,331
4,130 4,141 4,254 4,470 4,614 5,249
11,831 22,642 2,075 2,162 4,114 8,255
16 100 109 110 335 1,152
84 244 242 240 516 486
170 16 - - - -
32,592 44,530 24,622 24,720 28,799 35,139
(4,307) (10,568) 6,635 6,383 7,228 7,349
5,383 22,854 8,391 2,768 4,933 4,862
(5,383) (23,044) (8,391) (2,768) (5,640) (5,010)
8,986 - - - - 2,195
8,986 (190) - (707) - 2,047
4,369 - - - - -
$ (10,758) 9,048 $ 6,635 $ $ 6,383 $ 6,521 $ 9,396
$ 22,386 11,075 $ 1,851$ $ 1,670 $ 4,060 $ 7,599

1.3% 1.6% 1.5% 1.5% 3.4% 5.9%
Final Draft
Subject to Change
City of Signal Hill
Assessed Value of Taxable Property
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
-139-
Fiscal Year Taxable Total
Ended Secured Property Unsecured Assessed Direct
June 30, Residential Commercial Industrial Vacant Others** Property Value (Note) Tax Rate 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 2,841,196 0.06641% 2022 1,546,286 444,578 456,292 68,651 189,541 138,941 2,844,289 0.06641% 2023 1,646,200 478,056 486,408 74,289 257,657 138,192 3,080,802 0.06652% •• Includes institutional, miscellaneous, recreational, SBE Nonunitary, cross reference, and unknown property.

Note:

Source: County of Los Angeles Assessor I HdL Coren & Cone In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Final Draft
Subject to Change
City of Signal Hill
Direct and Overlapping Property Tax Rates
(Rates Per $100 of Taxable Value)
Last Ten Fiscal Years
-140-
Agency 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 0.02241 0.04595 0.03825 0.06736 0.06760 0.06319 0.06309 0.06327 0.06035 0.05970 Long Beach Unified School District 0.07981 0.08764 0.08324 0.08539 0.14732 0.14053 0.14334 0.13363 0.12724 0.12591 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 1.10572 1.13709 1.12499 1.15625 1.21842 1.20722 1.20993 1.20040 1.19109 1.18911 City's Share of 1% Levy per Prop 13 (3) 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 0.06777 General Obligation Debt Rate 0.00000 0.00000 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) 0.06530 0.06542 0.06560 0.06570 0.06569 0.06625 0.06634 0.06641 0.06641 0.06652 Notes:
(1)
(2)
(3)
(4)
(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
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.

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.

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.

Final Draft
Subject to Change
City of Signal Hill
Principal Property Tax Payers
Current Year and Nine Years Ago
(Amounts Expressed in Thousands)
-141-
FY 2022-2023 FY 2013-2014
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 $ 128,947 4.19% $ 155,419 7.33% Bcore Retail Towne Center LLC 2.04% - 62,865 0.00%
Long Beach Acquisition Corporation 1.55% 15,520 47,820 0.73% LBSH Parcel 1 LLC 31,391 1.02% 27,051 1.28%
Towne Center West I LLC ET AL 28,716 0.93% 24,747 1.17% G and I XI Sequoia 0.84% - 25,953 0.00%
Costco Wholesale Corporation 0.83% 21,177 25,437 1.00%
2550 Orange Ave Development LLC 0.68% - 20,925 0.00%
Home Depot USA INC 0.64% 18,069 19,783 0.85%
Tesoro Logistics Operations LLC 0.63% 19,275 19,267 0.91% PL Signal Hill LP 0.00% 36,201 - 1.71%
VNO Tru Cherry Avenue LP 0.00% 14,452 - 0.68%
Signal Hill Town Center LLC 0.00% 16,254 - 0.77%
$ 411,104 13.35% $ 348,165 16.43%
Note:

The amounts shown above include assessed value data for both the City and the Redevelopment Agency.

Source: HdL Coren & Cone
Final Draft
Subject to Change
City of Signal Hill
Property Tax Levies and Collections
Last Ten Fiscal Years
-142-
Collected Within the Note (1)
Fiscal Year Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Ended for the Percent Subsequent Percent
June 30, Fiscal Year (2) Amount (2) of Levy Years Amount of Levy 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
2023 20,125,700 14,580,521 72.45% N/A N/A N/A
Notes:
(1)
(2)
Source: County of Los Angeles Auditor-Controller
Los Angeles County does not provide detail of prior year collections. Therefore, the information about subsequent collections is not available.

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
Final Draft
Subject to Change
City of Signal Hill
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts Expressed in Thousands, Except per Capita)
-143-
Governmental Activities Business-Type Activities
Lease Leases Water Leases Total Percent of Percent of
Fiscal Revenue and Revenue and Primary Assessed Per Personal Year Bonds Loans Bonds Loans Government Value Capita Income 2014 $ - $ - $ 6,424 $ - $ 6,424 0.303% 563$ 17.95%
2015 - 6,044 65 - 6,109 0.268% 523 17.88%
2016 - 5,650 51 - 5,701 0.237% 491 17.10%
2017 - 4,741 36 - 4,777 0.197% 407 12.94%
2018 8,974 4,269 21 - 13,264 0.530% 1,125 31.74%
2019 8,851 3,787 4 - 12,642 0.489% 1,079 29.18%
2020 8,723 - 3,290 - 12,013 0.440% 1,034 25.90%
2021 8,590 - 2,778 - 11,368 0.400% 980 24.10%
2022 13,536 8,447 2,251 1,500 25,734 0.905% 2,221 55.47% 2023 15,229 7,774 1,709 1,557 26,268 0.851% N/A N/A
N/A Information is not yet available.

Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
City of Signal Hill
Direct and Overlapping Governmental Activity Debt
As of June 30, 2023
-144-
2022-23 Assessed Valuations: $3,080,801,983 Percent Net Total Debt Applicable Bonded
6/30/2023 To City Debt

DIRECT AND OVERLAPPING GENERAL FUND DEBT
LOS ANGELES COUNTY GENERAL FUND OBLIGATIONS $ 0.163% 4,240,529 2,601,551,282 $

LOS ANGELES COUNTY SUPERINTENDENT OF SCHOOLS
AND CERTIFICATES OF PARTICIPATION 3,403,487 0.163% 5,548 CITY OF SIGNAL HILL GENERAL FUND OBLIGATIONS 22,783,804 100.000% 22,783,804 LOS ANGELES COUNTY SANITATION DISTRICT NO. 29 AUTHORITY 100.000% 6,881 6,881 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 27,036,762

OVERLAPPING TAX AND ASSESSMENT DEBT
METROPOLITAN WATER DISTRICT $ 19,215,000 0.085% 16,333
LONG BEACH COMMUNITY COLLEGE DISTRICT (debt summary) 589,058,855 3.797% 22,366,565 LONG BEACH UNIFIED SCHOOL DISTRICT(debt summary) 1,779,754,702 3.798% 67,595,084 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 89,977,982
OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 100.000% 26,920,000 26,920,000 $ TOTAL DIRECT DEBT 22,783,804
TOTAL OVERLAPPING DEBT 121,150,940
COMBINED TOTAL DEBT $ 143,934,744
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, non-bonded capital lease obligations, and sales tax revenue bonds. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2022-23 Assessed Valuation:

Direct Debt ($22,783,804) 0.74%
Total Overlapping Tax and Assessment Debt 2.92%
Total Debt 4.67%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,936,450,579) Overlapping Tax Increment Debt 1.39%
Source: HdL, Coren & Cone
Final Draft
Subject to Change
City of Signal Hill
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts in Thousands)
-145-
Legal Debt Margin Calculation for the Current Year
Assessed value $ 3,080,801,983
Debt limit (15% of assessed value) 462,120,297
Debt applicable to limit -
Legal debt margin - Current Year $ 462,120,297
Debt Legal Debt as
Fiscal Debt Applicable Debt Percentage
Year Limit to Limit Margin of Limit
2014 $ 307,306,083 $ - $ 307,306,083 0.00%
2015 318,109,295 - 318,109,295 0.00%
2016 342,337,382 - 342,337,382 0.00%
2017 360,297,745 - 360,297,745 0.00%
2018 360,297,745 - 364,097,801 0.00%
2019 375,091,788 - 375,091,788 0.00%
2020 387,458,342 - 387,458,342 0.00%
2021 409,292,868 - 409,292,868 0.00%
2022 426,179,253 - 426,179,253 0.00%
2023 462,120,297 - 462,120,297 0.00%
Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
City of Signal Hill
Pledged-Revenue Bond Coverage
Last Ten Fiscal Years
(Amounts in Thousands)
-146-
Pledged Debt Service (1)
Fiscal Tax
Year Revenues Principal Interest Total Coverage
2014 $ - -$ -$ -$ -$
2015 - - - - -
2016 - - - - -
2017 - - - - -
2018 - - - - -
2019 - - - - -
2020 - - - - -
2021 - - - - -
2022 - - - - -
2023 - - - - -
(1) Debt service amounts are presented on a bond year basis.

Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
City of Signal Hill
Demographic and Economic Statistics
Last Ten Calendar Years
-147-
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 40,669 4.8%
2022 11,431 463,907 40,583 3.0%
2023 N/A N/A N/A N/A
N/A - Information is not yet available
Sources: City Population - State Department of Finance
Final Draft
Subject to Change
City of Signal Hill
Principal Employers
Current Year and Nine Years Ago
-148-
FY 2022-2023 FY 2013-2014
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment Costco Wholesale 408 1 4.76% 312 3 3.83%
Home Depot * 377 2 4.40% 375 2 4.60%
Office Depot - Veyer, LLC 297 3 3.47% 428 1 5.25%
Target 234 4 2.73% 218 4 2.68%
Federal Express Corporation 150 5 1.75%
Translational Pulminory, and Immunology
Research 150 6 1.75%
Glenn E Thomas Company 130 7 1.52% 114 10 1.40%
American University of Health Sciences 130 8 1.52%
Mercedes-Benz of Long Beach 129 9 1.51%
In-N-Out Burgers 119 10 1.39%
Long Beach BMW 136 5 1.67%
Accountable Healthcare I.P.A. 136 6 1.67%
Mercedes-Benz of Long Beach 127 7 1.56%
Platt Security Inc 122 8 1.50%
Hof's Hut Restaurants 114 9 1.40%
2,124 24.80% 2,082 25.56%
Note:
* - Reported Home Depot's two locations in one total
Source: City of Signal Hill Business Licenses, employee counts are self-reported Final Draft
Subject to Change
City of Signal Hill
Full-Time Equivalent City Government Employees by Department Last Ten Fiscal Years
-149-
Fiscal Year Ending June 30,
Department 2014 2015 2016 2017 2018 2019 2020* 2021 2022 2023 Administration 4.73 4.73 4.73 5.00 5.75 5.80 5.80 5.80 5.80 7.50 Finance 5.98 5.98 5.98 6.80 6.75 5.80 5.80 5.80 5.80 5.80 Parks, recreation, and library services 19.30 19.53 19.53 18.60 18.60 18.60 18.50 21.60 8.80 22.50 Police 52.89 52.89 52.89 53.00 53.00 53.00 51.10 51.10 52.70 52.70 Community Development 7.00 7.00 7.00 4.00 4.00 4.00 4.00 4.00 4.20 5.70 Public Works 30.02 30.04 30.04 28.00 28.00 28.00 28.00 27.00 28.00 30.00 Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - Total 120.92 121.17 121.17 116.40 117.10 116.20 114.20 103.50 119.10 124.20 Source: City of Signal Hill, Finance Department
Final Draft
Subject to Change
City of Signal Hill
Operating Indicators by Function
Last Ten Fiscal Years
-150-
Fiscal Year Ending June 30,
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police:

Calls for service 6,400 9,842 9,948 8,632 9,078 8,292 8,382 8,172 10,203 8,146 Reports written 3,312 3,894 4,332 5,618 5,061 4,504 3,804 4,345 4,658 4,151 Total arrests 1,115 1,390 1,216 1,403 1,074 987 880 848 823 861 Hazardous traffic citations 4,278 2,496 1,703 3,638 3,613 4,116 3,229 2,616 2,011 2,498 Parking citations 4,212 3,866 4,628 4,222 4,092 4,444 3,737 3,293 4,786 5,165 Community Development:

Code enforcement cases 87 77 68 67 59 48 32 41 42 198
Building permits 181 247 236 279 233 281 249 250 341 309 Site plan design reviews 7 5 6 6 5 4 3 4 5 6
Water:

Number of customers 3,079 3,116 3,162 3,302 3,116 3,157 3,147 3,142 3,146 3,145 Average daily consumption
(in millions of gallons) 1.80 1.77 1.59 1.58 1.57 1.54 1.55 1.60 1.56 1.33 Number of hydrants maintained 435 568 568 568 568 574 576 576 578 578 Public Works:

Traffic signals maintained 29 31 31 33 18 13 33 33 33 33 Street sweeping miles 6,240 5,980 5,980 5,980 5,720 5,980 5,980 5,980 5,980 5,980 Sidewalk repairs (square feet) 14,220 6,362 4,504 1,762 8,731 1,965 2,988 2,541 3,274 3,324 Curb & gutter replaced (linear feet) 1,388 - - - - 900 306 - 114 120 Cross gutter replaced (square feet) 5,067 - - - - 2,117 - - 160 80 Engineering:

Number of infrastructure
projects administered 4 3 3 10 15 17 13 11 18 23
Plan checks completed 5 8 7 39 74 92 110 115 102 115
Parks, recreation, and library services:

Library items borrowed 40,001 39,761 38,947 29,164 26,029 20,612 35,742 36,525 6,665 45,281 Youth sports participants 8,100 5,467 5,289 6,936 6,534 5,697 4,158 5,670 144 33,180 After school youth programs 14,785 15,530 15,326 30,960 16,810 20,680 15,585 13,135 6,840 35,785 Facility rental bookings 750 681 620 251 345 176 167 - 107 84 Notes:
* 2023 included an increase in overall sports and youth programs offered.

Source: Various City Departments
Final Draft
Subject to Change
City of Signal Hill
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
-151-
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Public Safety:

Police stations 1 1 1 1 1 1 1 1 1 1
Patrol vehicles 10 10 10 10 10 10 10 10 10 11
Fire stations 1 1 1 1 1 1 1 1 1 1
Water:

Milles of lines & mains 50 50 50 50 50 50 50 50 50 50
Reservoirs 3 3 3 3 3 3 3 3 3 3
Wells 3 3 3 3 3 3 3 3 3 3
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 3,619 3,667 3,667 3,667 3,520 3,467 3,414 3,365 3,342 Recreation and Culture:

Parks 10 10 10 10 10 10 10 10 10 11
Area of parks (acres) 23.03 23.03 23.03 23.03 23.03 23.03 23.03 23.03 23.03 25.64 Libraries 1 1 1 1 1 1 1 1 1 1
Community centers * 1 1 1 1 1 1 1 1 1 1
Bandstands 1 1 1 1 1 1 1 1 1 1
Baseball diamonds 1 1 1 1 1 1 1 1 1 1
Basketball courts ** 2 2 2 2 2 2 2 6 6 6
* 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
Final Draft
Subject to Change

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