Signal Hill City Council
December 10, 2024

Annual
Comprehensive
Financial Report
Signal Hill, California
A Beacon of Progress
Fiscal Year June 30, 2024
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CITY OF SIGNAL HILL, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
Prepared by:

Department of Finance
Siamlu Cox
Deputy Administrative Services Officer/Finance Director This page is intentionally left blank.

City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024

TABLE OF CONTENTS
INTRODUCTORY SECTION:

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

Independent Auditor’s Report ................................................................................................................ 1 Management's Discussion and Analysis (Required Supplementary Information) ................................. 5 Basic Financial Statements:

Government–Wide Financial Statements:

Statement of Net Position ....................................................................................................... 18 Statement of Activities ............................................................................................................ 19 Fund Financial Statements:

Governmental Funds:

Balance Sheet ........................................................................................................................ 21 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................ 23 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................... 26 Proprietary Funds:

Statement of Net Position ....................................................................................................... 27 Statement of Revenues, Expenses, and Changes in Net Position ........................................ 28 Statement of Cash Flows ....................................................................................................... 29 Fiduciary Funds:

Statement of Fiduciary Net Position ....................................................................................... 31 Statement of Changes in Fiduciary Net Position ..................................................................... 32 Notes to Basic Financial Statements ............................................................................................. 33 Required Supplementary Information:

Budgetary Comparison Schedules:

General Fund ................................................................................................................................ 82 Housing Authority Special Revenue Fund .................................................................................... 84 Capital Grants Special Revenue Fund .......................................................................................... 85 Notes To Required Supplementary Information ........................................................................... 86 Schedule of Proportionate Share of the Net Pension Liability – Miscellaneous ................................. 87 Schedule of Contributions – Miscellaneous ........................................................................................ 88 Schedule of Proportionate Share of the Net Pension Liability – Safety .............................................. 89 Schedule of Contributions – Safety ..................................................................................................... 90 Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................. 91 City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS, (Continued)
Supplementary Information:

Other Governmental Funds:

Description of Other Governmental Funds ................................................................................... 92 Combining Balance Sheet ............................................................................................................ 94 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................. 99 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Park Development Special Revenue Fund .......................................................................... 104 HCDA Grant Special Revenue Fund .................................................................................... 105 Special Gas Tax Special Revenue Fund .............................................................................. 106 Transportation Proposition A Special Revenue Fund .......................................................... 107 Pipeline Removal Special Revenue Fund ............................................................................ 108 Air Quality Improvement Special Revenue Fund ................................................................. 109 Water Development Special Revenue Fund ........................................................................ 110 Traffic Impact Special Revenue Fund .................................................................................. 111 Transportation Proposition C Special Revenue Fund .......................................................... 112 American Rescue Plan Act Special Revenue Fund ............................................................. 113 Lighting and Landscape Special Revenue Fund .................................................................. 114 Supplemental Law Enforcement Special Revenue Fund ..................................................... 115 Public Safety State Resources Special Revenue Fund ....................................................... 116 Housing Impact Special Revenue Fund ............................................................................... 117 MTA–STPL Grant Special Revenue Fund ........................................................................... 118 Measure M Special Revenue Fund ...................................................................................... 119 Transportation Measure R Special Revenue Fund .............................................................. 120 RMRA (SB1) Special Revenue Fund ................................................................................... 121 Measure W Special Revenue Fund ....................................................................................... 122 TDA Article III Special Revenue Fund ................................................................................... 123 Prop 68 – Parks and Recreation Special Revenue Fund ...................................................... 124 Public Safety Grant Fund ...................................................................................................... 125

STATISTICAL SECTION
Description of Statistical Section ....................................................................................................... 126 Financial Trends:

Net Position by Component – Last Ten Fiscal Years ................................................................. 127 Changes in Net Position By Component – Last Ten Fiscal Years ............................................. 129 Fund Balances of Governmental Funds – Last Ten Fiscal Years .............................................. 131 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................... 133 Revenue Capacity:

Assessed Value of Taxable Property – Last Ten Fiscal Years ................................................... 135 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ........................................ 136 Principal Property Tax Payers – Current Year and Nine Years Ago .......................................... 137 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................... 138 City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS, (Continued)
STATISTICAL SECTION, (Continued)
Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................................................... 139 Direct and Overlapping Governmental Activity Debt .................................................................. 140 Legal Debt Margin Information – Last Ten Fiscal Years ............................................................. 141 Pledged–Revenue Bond Coverage: Redevelopment Tax Allocation Bonds – Last Fiscal Years .................................................................................................................. 142 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Calendar Years ........................................... 143 Principal Employers – Current Year and Nine Years Ago .......................................................... 144 Operating Information:

Full–Time Equivalent City Government Employees by Department – Last Ten Fiscal Years ........................................................................................................... 145 Operating Indicators by Function – Last Ten Fiscal Years ......................................................... 146 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ...................................... 147 This page is intentionally left blank.

INTRODUCTORY SECTION
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CITY OF SIGNAL HILL
2175 Cherry Avenue  Signal Hill, CA 90755-3799
December 4, 2024

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) for the City of Signal Hill (City) for the fiscal year ended June 30, 2024. The purpose of this report is to provide the City Council, residents, the 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, 2024. 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.
ii
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 an estimated population of 11,448. 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, under the provisions of State law, the City formed the Signal Hill Redevelopment Agency and 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 135 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.

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, iii
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 City also established the Signal Hill Housing Authority (Housing Authority) 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 capital improvements – to be used in connection with future City financing or refinancing activities – the City formed the Signal Hill Municipal Financing Authority (Municipal Financing Authority) between the City and the Agency on August 22, 2017, under the Joint Exercise of Powers Law of the State of California, Section 6502 of Title 1, Division 7, Chapter 5 of the Government Code of the State of California (the “Joint Exercise of Powers Act”). The Municipal Financing Authority’s Board of Directors is the Signal Hill City Council.

Local Economy
California cities have effectively recovered 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, and volatile interest rates that are putting pressure on the housing market, car sales, and other parts of the economy. 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. Another impact is the November 2024 election results that could lead to new industrial policies on tariffs which, in turn, could affect the price of goods for consumers. Even with all this, many economic forecasts believe the US economy remains resilient with renewed consumer confidence and spending, iv
and relatively 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 Federal Reserve has taken an aggressive stance in combating inflation by raising the federal funds target rate from 0.25% in March 2022 to 5% in September 2024. The inflation rate met a 40-year high of 9.1% in 2022 but tapered off to 2.4% in September 2024 and is still higher in comparison to the Federal Reserve’s target of 2% inflation rate for the US economy. Even though inflation and interest rates were high, the US Gross Domestic Product (GDP) expanded by an annualized 2.8% pace by the quarter ending in September 2024, which is in line with the 3.4% average quarterly growth seen from 2021 to 2023. As the Federal reserve continues with its current strategy of interest rate cuts to achieve a soft landing, the economy is still experiencing slow job growth and household incomes are still dealing with higher cost of goods. In the long run, the pace of the rate cuts through next year will have the biggest impact on improving the overall economy and inflation.

California’s 2.8% GDP growth rate in the second quarter of 2024 shows the State’s economy continues to expand but slower than the national annual average of 3.7% in 2023, primarily due to a higher unemployment rate and housing market stagnation. Between January 2020 (just before COVID) and September 2024, prices increased by approximately 20% with food, rent of a primary residence, and gasoline prices rising well above this. As of October 2024, California’s unemployment rate increased to 5.3%, which is the third highest of any state, and higher than the national average of 4.1% for the same period; a main component of this data trend is attributed to slower job growth in select labor markets. If these conditions continue to persist, this may further impede the State’s long-term economic growth by causing consumers to make tradeoffs in household spending budgets. Also, the State of California continues to grapple with budget deficits leaving uncertainty regarding how the State Legislature plans to balance its budget, creating possible impacts to local municipalities. As there are many variables driving the local economy, most economic forecasts are still predicting growth, but limited growth in the following years for 2025 and 2026.

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 total point-of-sale tax revenues increasing by 4% from the previous year. The City’s transaction and use tax Measure SHR continues to be the biggest contributor to an increase in overall sales tax revenue with a 5% increase over the prior year. Measure SHR generated 27% of the Bradley Burns amount, with general consumer goods continuing to produce the most sales tax revenue. Overall sales trends were forecasted to experience “flat” growth in FY 2023-24 and also the following year. Overall, as reported by HdL, California sales tax performance for FY 2023-24 grew modestly and lags far behind the double-digit growth seen during the pandemic recovery. Looking v
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.

The City’s major sales tax industry groups include Autos and Transportation, Business and Industry, County Pool Allocations and General Consumer Goods. The City’s Autos and Transportation industry sector experienced a robust year-over-year growth of 21%, mostly attributed to a new dealership and a one-time, prior year adjustment resulting in increased revenue. Net of the prior year adjustment, the year-over-year growth for Auto and Transportation was 11%. County Pool Allocations continue to grow with a 5% year-over year growth as projected by HdL. Business and Industry and General Consumer Goods both experienced a 2% loss over the prior year. Although the Business and Industry sector benefits from online shopping which did increase, there were individual sectors that experienced a loss.

Building and Constructions continues to see a downward turn in home-improvements sales with conditions predicted to persist through the middle of 2025, and although interest rates have fallen in the short-term, consumers continue to suspend big-ticket purchases. As a result, this sector is not predicted to see growth until FY 2025-26. Overall sales tax revenue is still predicted to stay relatively flat through FY2024-25, and then an average of about 3% growth in the outer years.

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. High mortgage rates continue to test California’s housing market as sales continue to decline, and buyers face challenges as median sales prices increase. In comparison, California’s median home price increased by 11.4% as of April 2024, with Southern California’s median home prices increasing by 7.4% based on HdL’ s property tax division. Signal Hill’s home sales have continued to remain slow within single digits, most likely due to rising interest rates and inflation continue to drive this trend and is not expected to change until FY 2025-26. The City’s overall net taxable property value changed by 4.4%. 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 2024-25.

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 preliminary net return of 9.3% for FY 2023-24. When factoring in CalPERS’ discount rate of 6.8% and the FY 2023-24 preliminary return of 9.3%, the estimated funded status now stands at 75% as of June 30, 2024 for the Public Employees Retirement Fund (PERF). The recent gain and loss, change in the discount rate, and assumption changes have led to variable funding status, which directly vi
impact the City’s pension costs and overall budget strategies; the City will continue to monitor this issue closely.

The City completed a comprehensive fee study in FY 2023-24 which reviewed the City’s overall user and regulatory fee structure, basis of fees, and cost recovery. The projected positive fiscal impact has been incorporated into the current biennial budget. In addition, the City is conducting 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. The water rate study is scheduled to be completed in 2025. The City has also embarked on a comprehensive economic and land use study for three areas of the community. Broadly defined, the purpose of an Opportunity Study Area is to assess future land use opportunities that will allow the City to grow economically, create jobs, encourage new development, and diversify the City’s tax basis for several years.

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 Boys and Girls Club which would represent a $200 million investment in the community.

Since embarking on the due diligence process, National CORE experienced delays due to new State legislation regulating oil and gas operations. In addition, due to its budget deficit, the State temporarily suspended the Infill Infrastructure Grant program, which National CORE proposed as a primary funding source for these projects. Despite these temporary setbacks, National CORE and the City will negotiate the terms of an Affordable Housing Agreement for the Walnut Bluff property in 2025 that will specify the terms, conditions, and timing of the City’s funding contribution.

FY 2024-25 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 2024-25. The City’s FY 2024-25 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, economists, and news reports.

The City’s expenditures were developed as a conservative spending plan addressing City Council and community priorities. The City’s continued operations at full capacity include the expansion of current community and recreation programs, increased public engagement through 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.
vii
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 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 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. viii
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 continues preserving the high quality of life 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 $6.6 million in annual revenues in FY 2023-24 to help fund programs such as streets, pothole and infrastructure repair, clean public areas, 9-1-1 emergency response, and crime prevention.

In FY 2023-24, the reserves levels were governed by the City’s Financial Policy recommendation of maintaining a combined General Fund and Economic Uncertainties Fund reserves level equivalent to a minimum of six months of operating expenditures. The unassigned fund balance in the General Fund and the fund balance of the Economic Uncertainties Fund were approximately 112% of FY 2023-24 General Fund budgeted operating expenditures, which exceeds the policy guidelines of 50%. For FY 2024-25, the City will follow the new General Fund Reserve Policy, which was approved by the City Council on September 10, 2024, to formalize the City’s financial reserve targets and reserve criteria.

The new policy established a minimum threshold for both the General Fund Unassigned fund balance and the Economic Uncertainties Reserve fund at 75% with an upper range of 100% of the General Fund budgeted 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. The City’s strategic reserves also allow resources to be set aside to fund major capital improvement projects to maintain roads, infrastructure, and other long-term assets to improve the well-being of its residents and visitors; with two major upcoming projects that include the Civic Center Master Plan and the City Hall Renovation.

Management believes the City has positioned itself to weather unanticipated economic fluctuations through adequate reserve accumulation and continuation of the privatization of City functions such as street sweeping and park maintenance, enhanced and renewed focus on proactive economic development efforts with the completion of the long-range asset management plan, and a continued focus on our human development effort to reshape and retrain our workforce to meet changing demands.

Financial and Internal Controls
The Administrative Services Officer/Director of Finance is directly responsible for the City’s financial administration and oversees the budget, purchasing, management information systems, risk management, and fiscal operations. Fiscal operations include general accounting, financial reporting, ix
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 that these objectives are met and that the financial statements are free of any material misstatements. The concept of reasonable assurance recognizes: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Management believes the City’s current internal accounting controls adequately safeguard assets and provides 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 2023-24, 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 2023-24 were American Rescue Plan Act (ARPA) funds. 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 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.

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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 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 is responsible for audit 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, 2023. This recognition was the 28th 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 The preparation of this annual comprehensive financial report was made possible by the staff of the (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 the Signal Hill City Council members for their encouragement and support in conducting the City's financial operations in a responsible manner.

Respectfully submitted,
Carlo Tomaino
City Manager
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Signal Hill
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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COMMISSIONS

PLANNING

PARKS & RECREATION

CIVIL SERVICE

LEGISLATIVE LEGISLATIVE

CITY TREASURER

CITY CLERK

CITY COUNCIL

PUBLIC WORKS COMMUNITY DEVELOPMENT PARKS, RECREATION AND

LIBRARY SERVICES

ENGINEERING

BUILDING MAINTENANCE

ENVIRONMENTAL PROGRAMS

GROUNDS MAINTENANCE

FLEET OPERATIONS

WATER ENTERPRISE

STREET AND GRAFFITI MAINTENANCE

PLANNING

NEIGHBORHOOD ENHANCEMENT

BUILDING AND SAFETY

OIL FIELD SERVICES

LIBRARY PROGRAMS / SERVICES

COMMUNITY SERVICES

RECREATION

PARK DEVELOPMENT
CDBG

TRANSPORTATION SERVICES

ANIMAL CONTROL

CITY OF SIGNAL HILL

ORGANIZATIONAL CHART

LEGISLATIVE

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EMERGENCY / DISASTER SERVICES
POLICE

RESIDENTS OF SIGNAL HILL
[LLL
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FINANCIAL SECTION
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735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
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ROGERS, ANDERSON , MALODY & SCOTT, LLP
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STABILITY. ACCURACY. TRUST.
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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, 2024 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (GAS). 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. -2-
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.

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.
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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.

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.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 4, 2024, 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 4, 2024
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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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, 2024 (FY 2023-24). 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 for a more comprehensive overview of the City’s financial status for the period ending June 30, 2024.

FINANCIAL HIGHLIGHTS
The comparisons provided in this discussion and analysis are between FY 2022-23 and FY 2023-24; all increases and decreases are expressed relative to FY 2022-23 amounts. Financial highlights for FY 2023-24 are summarized below. Details related to the highlights in this report 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 $164.3 million in FY 2022-23 and $182.7 million in FY 2023-24.
 Of this amount, $52.6 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 $111.2 million and restricted of $18.9 million.  The City's total net position increased by $18.4 million over FY 2022-23 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.

Throughout the fiscal year, the Federal Reserve combated high inflation by raising interest rates, leading to the City's investment portfolio reaching 98.5% 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 Management’s Discussion and Analysis (MD&A), with more details in Notes 1F and 2 of the City's Financial Statements.

Fund Level
 As of June 30, 2024, governmental funds report a combined fund balance of $94.4 million, an increase of $13.1 million from the prior year. Of this amount, $31.4 million is available for spending at the City's discretion (unassigned fund balance).  As of June 30, 2024, the General Fund reports an ending fund balance of $75.7 million. Of this amount, $31.6 million is available for spending at the City's discretion (unassigned fund balance).

Cash and investments of the General Fund total $63.4 million, which represents 83.8% of the General Fund's $75.7 million fund balance.

City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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 As of June 30, 2024, the City's Water Enterprise fund reports an ending net position of $28.2 million, an increase of $4.6 million, or 19.4%, from the prior year. The net position is classified as net investment in capital assets of $27.1 million and unrestricted net position of $1.1 million. In 2020, the City completed a Proposition 218 water rate study, which resulted in a steady revenue increase that helped offset Water Utilities Enterprise Fund activity costs over a five-year period.

The City is currently in the process of conducting a new study, with results expected to be available in 2025.
 As of June 30, 2024, the City's Internal Service fund reports an ending net position of $3.4 million.

Of this amount, $2 million is unrestricted and available for spending at the City's discretion. Of the $2 million, $1.4 million reserved for unforeseen events or emergencies.

OVERVIEW OF THE FINANCIAL STATEMENTS
The Governmental Accounting Standards Board requires this discussion and analysis as required supplementary information. This discussion and analysis is 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 additional supplementary information to the basic financial statements and required supplementary information.

Government-wide Financial Statements. The government-wide financial statements are designed to give the reader a picture of the City from the economic resources measurement focus using the accrual basis of accounting. This broad overview is similar to the financial reporting used in private-sector business. The government-wide financial statements have separate columns for governmental activities and business-type activities. Governmental activities of the City include general government (legislative, finance, administration, and personnel); 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 18 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 an 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.

City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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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 financerelated 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 five categories facilitate analysis and understanding of the City's commitment of financial resources.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Housing Authority Special Revenue Fund, the Capital Grants Special Revenue Fund, and the Capital Improvement Capital Projects Fund, all of which are considered to be major funds. Data from all other governmental funds is combined into a single, aggregated presentation. Individual fund data for these non-major governmental funds is provided as supplementary information elsewhere in this report.

The basic governmental fund financial statements can be found beginning on page 21.

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, the 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 27 of this report.

City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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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 31 of this report.

Notes to the basic financial statements. The notes to the basic financial statements provide additional information that is important to provide a full understanding of the data in the government-wide and fund financial statements. The notes to the basic financial statements can be found beginning on page 33 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, 2023, and June 30, 2024, and is as follows:

Condensed Statement of Net Position
Governmental Activities Business-Type Activities Totals 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Assets:

Current and other assets 134,629,654 $ 125,094,389 $ 6,031,486 $ 2,878,206 $ 140,661,140 $ 127,972,595 $ Capital assets, net 108,706,050 106,396,109 29,918,742 27,963,644 138,624,792 134,359,753 Total Assets 243,335,704 231,490,498 35,950,228 30,841,850 279,285,932 262,332,348 Deferred outflows of resources:

Deferred amount on refunding - - 23,834 41,168 23,834 41,168 Deferred amounts from pension 14,655,757 14,409,260 928,108 1,204,438 15,583,865 15,613,698 Deferred amount from OPEB 1,769,701 1,983,256 174,587 214,988 1,944,288 2,198,244 Total Deferred Outflows 16,425,458 16,392,516 1,126,529 1,460,594 17,551,987 17,853,110 Liabilities:

Current liabilities 11,365,087 13,774,948 2,654,317 1,119,875 14,019,404 14,894,823 Long-term liabilities 68,300,110 65,909,725 5,948,866 7,151,681 74,248,976 73,061,406 Total Liabilities 79,665,197 79,684,673 8,603,183 8,271,556 88,268,380 87,956,229 .

Deferred inflows of resources:

Deferred amounts from pension 1,684,711 2,617,530 128,995 247,505 1,813,706 2,865,035 Deferred amount from OPEB 1,482,047 1,519,420 146,209 164,708 1,628,256 1,684,128 Deferred amounts from Leases 22,431,097 23,388,183 - - 22,431,097 23,388,183 Total Deferred Inflows 25,597,855 27,525,133 275,204 412,213 25,873,059 27,937,346 Net position:

Net investment in capital assets 84,083,143 82,815,477 27,073,694 24,580,013 111,156,837 107,395,490 Restricted 18,898,879 15,748,253 - - 18,898,879 15,748,253 Unrestricted 51,516,088 42,109,478 1,124,676 (961,338) 52,640,764 41,148,140 Total Net Position 154,498,110 $ 140,673,208 $ 28,198,370 $ 23,618,675 $ 182,696,480 $ 164,291,883 $ City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Over time, net position may serve as a useful indicator of a City's financial position. At June 30, 2024, the City’s net position was $182.7 million, an increase of $18.4 million or 11.2%, over the net position of $164.3 million at June 30, 2023.

The largest portion of the City's net position ($111.2 million or 60.9%) 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 the Hillbrook Park project, ongoing pavement management improvements, sidewalk repair, and the Spring Street overlay.

The City's restricted net position totals $18.9 million (10.3% 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 $52.6 million (28.8%) 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 $11.5 and $3.8 million in unrestricted net position and net investment in capital assets, respectively. The excess of revenues over expenses will be analyzed in conjunction with the Statement of Activities.

The 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.

Condensed Statement of Activities
Governmental Activities Business-type Activities Totals 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Revenues:

Program revenues:

Charges for services 2,958,434 $ 2,282,923 $ 6,766,909 $ 6,279,769 $ 9,725,343 $ 8,562,692 $ Grants and contributions:

Operating 5,052,635 2,030,233 - - 5,052,635 2,030,233
Capital 1,772,478 2,089,700 - - 1,772,478 2,089,700
General revenues:

Property taxes 3,106,610 2,971,818 - - 3,106,610 2,971,818 Sales and use taxes 28,053,616 26,461,978 - - 28,053,616 26,461,978 Other taxes 2,397,255 2,441,641 - - 2,397,255 2,441,641 Investment income 5,167,205 2,207,630 313,178 51,416 5,480,383 2,259,046 Unrestricted grants and
contributions 622,705 788,511 - - 622,705 788,511
Total revenues 49,130,938 41,274,434 7,080,087 6,331,185 56,211,025 47,605,619 Expenses:

General government 7,318,373 6,220,479 - - 7,318,373 6,220,479 Parks, recreation, and library services 3,710,796 2,534,696 - - 3,710,796 2,534,696 Police 12,988,649 9,014,012 - - 12,988,649 9,014,012
Community development 1,469,814 1,257,083 - - 1,469,814 1,257,083 Public works 6,326,063 4,750,389 - - 6,326,063 4,750,389 Interest expense 511,542 494,040 96,800 - 608,342 494,040 Unallocated infrastructure
depreciation 445,747 421,707 - - 445,747 421,707
Water - - 4,938,644 4,553,192 4,938,644 4,553,192
Total expenses 32,770,984 24,692,406 5,035,444 4,553,192 37,806,428 29,245,598 Excess of revenues over expenses 16,359,954 16,582,028 2,044,643 1,777,993 18,404,597 18,360,021 Transfers (2,535,052) (148,445) 2,535,052 148,445 - -
Change in net position 13,824,902 16,433,583 4,579,695 1,926,438 18,404,597 18,360,021 Net position, beginning 140,673,208 124,239,625 23,618,675 21,692,237 164,291,883 145,931,862 Net position, ending 154,498,110 $ 140,673,208 $ 28,198,370 $ 23,618,675 $ 182,696,480 $ 164,291,883 $ City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Government-wide revenues increased by $8.6 million (18.1%) to $56.2 million. The majority of this increase resulted from an increase of $3.2 million from investment income, $2.7 million in grants, $1.6 million in sales and use taxes, and $1.2 million in charges for services. The increase in Investment income is attributed to the performance of the City’s investment portfolio in a high-interest rate economy.

These increases are slightly offset by a $0.2 million decrease in unrestricted grants and contributions compared to the prior year, as the related projects were completed towards the beginning of the fiscal year.

The most significant portion of the City's revenue came from sales and use tax which accounted for

49.9% of total revenue, charges for services accounted for 17.3%, 12.1% was received from grants and contributions, and 9.7% is attributed to investment income. Additionally, 9.8% of revenues are attributed to 5.5% from property taxes, 4.3% from other taxes.

Government-wide expenses of all City programs and services increased by a net $8.6 million (29.3%) to $37.8 million for the fiscal year ended June 30, 2024. Governmental Activities increased by $8.1 million, and Business Type Activities increased by $0.5 million. Expenses include adjustments for depreciation, long-term debt, and pension costs. The net increase in Government-wide expenses is spread across the City's programs with increases in General Government by $1.1 million; Parks, Recreation, and Library services by $1.2 million; Police Department by $4.0 million, Community Development by $0.2 million; and Public Works by $1.6 million. The Water Fund had a total expenditure of $4.9 million which reflects a decrease of $0.1 million.

The Police Department accounted for 34.4% of the total costs, General Government for 19.4%, the Water fund for 13.1%, and Public Works for 16.7%, with Parks, Recreation, and Library Services for 9.8%, Community Development for 3.9%, and Interest Expense for 1.6%.

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

Governmental activities contributed $16.4 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 $7.9 million (19.0%), to $49.1 million. Approximately $1.6 million of this increase is related to actual sales and use tax revenues higher than estimated. Interest income also increased by $3.0 million. Property tax revenue increased by $0.1 million, and operating and capital grants increased by $2.7 million.

Expenses of governmental activities increased by a net $8.1 million (32.7%). Expenses include long-term debt and pension costs. The net increase is spread across the City's programs with the Police Department increasing by $4.0 million; General Government increasing by $1.1 million; Parks, Recreation, and Library Services increasing by $1.2 million; Community Development increasing by $0.2 million; and Public Works increasing by $1.6 million. Interest expense experienced a very negligible change.

City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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Operating Grants, 10%
Other Revenue, 1%
Sales & Use Tax, 57%
Property Taxes, 6%
Other Taxes, 5%
Charges for Services, 6%
Investment Income, 11%
Capital Grants, 4%
Revenues by Source - Governmental Activities
Fiscal Year 2023-24
Interest Expense, 2%
Unallocated Depreciation, 1%
Public Works, 19%
Parks, recreation, and library
services, 11%
Police, 40%
Community Development, 4%
General Government, 22%
Expenses - Governmental Activities
Fiscal Year 2023-24
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
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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 self-supporting basis without making a significant profit or needing general tax subsidies. The total net position at the end of the year was $28.2 million as compared to $23.6 million at the end of the prior year. This represents an increase in net position of $4.6 million or 19.4%. The increase can largely be attributed to the transfer from the American Rescue Plan Act Fund for the 33rd Street Water Main Replacement Project, the completion of the Water Services and Valve Replacement Phase II project, in which the Water Fund replaced approximately 13 service lines and meters, and savings in salaries and wages due to vacancies.

Revenues of $6.8 million consist of charges for services. This is an increase of $0.5 million or 7.8% over the prior year's total revenue of $6.3 million. The increase is mainly due to increased water rates as compared to the prior year. Expenses totaled $5.0 million in the current year, an increase of $0.48 million over the prior year's expenses of $4.6 million. The majority of the increase 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, 4%
Charges for Services, 96%
Revenues by Source - Business-type Activities
Fiscal Year 2023-24
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-13-
Depreciation, 19%
Other, 11%
Interest Expense, 2%
Personnel, 14%
Contractual, 9%
Supplies, 27%
Utilities, 5%
Materials & Repairs, 14%
Expenses - Business-type Activities
Fiscal Year 2023-24

FUND FINANCIAL ANALYSIS
The City's major governmental funds for FY 2023-24 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 $11.1 million in FY 2023-24. This increase resulted from revenues and transfers-in totaling $41.9 and $0.2 million, respectively, exceeding expenditures, net of subscription acquisition sources, totaling $29.2 million and transfers out totaling $1.8 million General Fund revenues increased by a net of $8.0 million compared to 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
Overall, the General Fund’s operating expenditures were higher than the prior year by $0.7 million but were lower than anticipated by $5.4 million. Operating expenditures are budgeted at full capacity; however, total expenditures and transfers out were lower than budgeted, mainly due to a large number of position vacancies across all departments, and delays in projects.

City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-14-
Housing Authority Special Revenue Fund
The Housing Authority fund balance increased by $0.7 million to $7.2 million as compared to the prior year's fund balance of $6.4 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 high interest rates yielding better than expected results. The Housing Authority also received a transfer of $0.38 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 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 2023-24 were from the Metropolitan Water District MAAP Program, and it was used for capital construction projects.

Capital Improvement Capital Projects Fund
Capital expenditures within the Capital Improvement Capital Projects Fund totaled $3.6 million for the fiscal year. The major projects worked on in FY 2023-24 included the Hillbrook Park project, ongoing pavement management improvements, the Spring Street overlay, sidewalk repair, and various other street improvement construction projects. The restricted ending fund balance of $0.4 million reflects an advance received for a specified construction project, all other project costs were fully funded as budgeted.

General Fund Budgetary Highlights
The General Fund often receives the most public attention since it is where local tax revenues are accounted for and where the most visible and recognizable municipal services (such as police, public works and community services) are funded.

In preparing its budget, the City attempts to estimate revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner in alignment with the City Council's expectations as outlined in the 2023-2028 Strategic Plan. 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 adding $1.6 million in new appropriation, excluding surplus reserve adjustments utilizing the prior year’s surplus. The approved appropriations were mainly related to the launch of the CalPERS Fresh Start Program, and contract services adjustments.

Total General Fund revenues of $41.9 million were $8.8 million higher than the budgeted amount of $33.1 million. The increase over the FY 2022-23 Operating results was mainly due to an increase in the City’s significant revenue sources. Sales tax exceeded the prior year by $1.6 million, mainly driven by the Autos and Transportation business sector out-performing expectations and the City’s transactional tax, Measure SHR, continues to contribute to overall sales tax revenue. However, looking forward sales tax revenue is expected to remain relatively flat for FY 2025-26 with moderate growth going forward with signs of slowing growth in certain business sectors. Overall, sales tax revenue is budgeted conservatively using updated industry expert information. Another significant increase in revenues was attributed to an City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-15-
increase in interest income and the annual unrealized interest gain/loss accounting adjustment also called the mark to market adjustment required by GASB No. 31. Interest income was higher than prior year by $1.6 million due to the City’s investment portfolio performing better than projected in the current highinterest rate market and as the City’s investment portfolio performs better the prior year mark to market adjustment for the unrealized loss reversed resulting in a one-time increase in non-cash revenues of $1.3 million.

Total General Fund expenditures of $29.2 million net of subscription acquisition costs were projected at $30.9 million, coming in $1.6 million lower than projected. In comparison to the budget, actual expenditures were below the budget by $3.8 million, which also resulted from all departments ending 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. Administration, Community Development and the Police departments also experienced lower use of planned contract services, which also contributed 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, 2024, totaled $138.6 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 2023-24 had a net increase in capital assets of $4.3 million. The increase was mainly due to the additional and ongoing projects increasing construction in progress, and addition to Capital Assets related to GASB Statement 96. For additional information see Notes 1H and 3 of the Notes to Basic Financial Statements.

Capital Assets
Governmental Activities Business-Type Activities Totals 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Land 35,519,323 $ 35,519,323 $ 4,427,416 $ 4,427,416 $ 39,946,739 $ 39,946,739 $ Water rights - - 213,553 243,933 213,553 243,933
Construction in progress 2,690,199 3,142,305 294,010 686,161 2,984,209 3,828,466 Buildings & equipment 39,600,772 40,827,530 24,844,271 22,552,260 64,445,043 63,379,790 Infrastructure 15,896,801 12,153,617 - - 15,896,801 12,153,617 Right-to-use assets 14,998,955 14,753,334 139,492 53,874 15,138,447 14,807,208 Total assets 108,706,050 $ 106,396,109 $ 29,918,742 $ 27,963,644 $ 138,624,792 $ 134,359,753 $ Debt Administration
Following is a summary of the City's long-term liabilities:

Long-term Liabilities
Governmental Activities Business-Type Activities Totals 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Water revenue bonds - $ - $ 1,146,576 $ 1,708,631 $ 1,146,576 $ 1,708,631 $ Leave revenue bonds 7,090,916 7,773,965 - - 7,090,916 7,773,965 Water replenishment district loan - 1,360,465 1,500,000 1,360,465 1,500,000 Leases payable 13,068,961 13,292,629 - - 13,068,961 13,292,629 Subscriptions payable 2,364,727 1,936,175 146,852 57,268 2,511,579 1,993,443 Net pension liability 37,148,439 34,003,165 2,474,285 2,955,889 39,622,724 36,959,054 Net OPEB liability 7,762,983 8,090,032 765,844 876,973 8,528,827 8,967,005 Compensated absences 864,084 813,759 54,844 52,920 918,928 866,679 Total long-term liabilities 68,300,110 $ 65,909,725 $ 5,948,866 $ 7,151,681 $ 74,248,976 $ 73,061,406 $ City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-16-
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 $1.1 million at year-end. The lease revenue bonds are part of the City's governmental activities, and the outstanding bond liability is $7.1 million at year-end. The City's Water Enterprise included in Business-Type Activities has a zero-interest, $1.5 million loan from the Water Replenishment District to partially fund the construction of the new Well No. 10. The balance of this loan was $1.4 million at fiscal year-end. Additional information on the City's long-term obligations can be found in the following Notes to Basic Financial Statements:
 Note 1M: Employee compensated absences
 Note 6: Long-term liabilities
 Note 9B: Net pension liability
 Note 10B: Net OPEB liability

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
Local and state economies strive for normalcy as they combat the long-term, economic effects of the coronavirus pandemic that have contributed to the prolonged historically high inflation and the increased interest rates by the Federal Reserve. Cities continue to be challenged in forecasting due to higher inflation affecting consumer spending trends, and volatile interest rates that are putting pressure on the housing market, car sales, and other parts of the economy. The City has been fortunate in its specific mix of business, which has contributed to a higher than expected sales and use tax, and has been proven to be resilient in response to volatile economic changes.

In developing the FY 2024-25 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 2024-25, the City utilized planned revenues and transfers 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 with a conservative view. The FY 2024-25 operating budget reflects General Fund estimated revenues and transfers-in totaling $37.8 million, an increase of $4.3 million to the adopted FY 2023-24 budgeted revenues. The increase can mainly be attributed to an increase of budgeted interest income revenue to reflect current interest, but this trend is not anticipated to continue in FY 2025-26 due to potential changes by the Federal Reserve regarding interest rates, which will affect the City’s investment yield.

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 2024-25 operating budget reflects General Fund appropriated expenditures and net transfers-out totaling $40.6 million, an increase of $4.7 million to the adopted FY 2023-24 budget.

The increase in expenditures is mainly due to rising obligated costs and new agreements with employee bargaining units and related benefits. The City always attempts to maximize grants and awarded funding from federal, state, and local sources to help offset anticipated and expected increases associated with these contractual and obligated costs.

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 healthy reserves; preparing for natural disasters and public health emergencies; 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; maintaining local streets and fixing potholes; maintaining sidewalks, street trees, storm drains, parks and recreation facilities, other infrastructure and plan for future economic development; cleaning and maintaining public areas and removing graffiti.

City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
-17-
The economic impact of the previous several years has placed tremendous fiscal pressure on local governments, 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.

While it is possible that the City can be presented with unforeseen challenges and opportunities in the years ahead, 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 fiscal stability and will continue to deliver the services that provide a high quality of life to residents.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Signal Hill's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance at the City of Signal Hill, 2175 Cherry Avenue, Signal Hill, California 90755-3799.

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City of Signal Hill
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -18-
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments 89,530,667 $ 8,812,888 $ 98,343,555 $ Receivables:

Accounts 974,284 589,506 1,563,790
Accrued interest 722,532 - 722,532
Due from other governments 5,910,624 - 5,910,624
Leases - 23,866,057 23,866,057
Loans - 1,685,069 1,685,069
From Successor Agency 7,409,966 - 7,409,966
Internal balances 3,755,777 (3,755,777) -
Prepaid items 118,471 - 118,471
Land and improvements held for resale, net 1,040,642 - 1,040,642 Restricted Assets:

Cash and investments 343 91 434
Capital assets, not being depreciated 38,209,522 4,721,426 42,930,948 Capital assets, being depreciated and amortized,
Net of accumulated depreciation and amortization 70,496,528 25,197,316 95,693,844 Total Assets 243,335,704 35,950,228 279,285,932

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding - 23,834 23,834
Pension related 14,655,757 928,108 15,583,865
OPEB related 1,769,701 174,587 1,944,288
Total Deferred Outflows of Resources 16,425,458 1,126,529 17,551,987

LIABILITIES
Accounts payable 2,016,474 2,171,827 4,188,301
Accrued liabilities 2,095,629 34,364 2,129,993
Accrued interest payable 17,244 87,153 104,397
Deposits payable 319,418 360,973 680,391
Unearned revenue 6,916,322 - 6,916,322
Noncurrent liabilities:

Due within one year 1,930,613 764,321 2,694,934
Due in more than one year:

Other 1,944,416 21,458,075 23,402,491
Net pension liability 2,474,285 37,148,439 39,622,724
Net OPEB liability 7,762,983 765,844 8,528,827
Total Liabilities 79,665,197 8,603,183 88,268,380

DEFERRED INFLOWS OF RESOURCES
Pension related 1,684,711 128,995 1,813,706
OPEB related 1,482,047 146,209 1,628,256
Lease related 22,431,097 - 22,431,097
Total Deferred Inflows of Resources 25,597,855 275,204 25,873,059

NET POSITION
Net investment in capital assets 84,083,143 27,073,694 111,156,837 Restricted for:

Capital improvements 3,187,212 - 3,187,212
Development impact 3,568,636 - 3,568,636
Transportation 4,928,154 - 4,928,154
Housing - 7,214,877 7,214,877
Unrestricted 51,516,088 1,124,676 52,640,764
Total Net Position 154,498,110 $ 28,198,370 $ 182,696,480 $ City of Signal Hill
Statement of Activities
June 30, 2024
-19-
Program Revenues
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions

GOVERNMENTAL ACTIVITIES
General government 7,318,373 $ 70,484 $ 2,529,662 $ - $ Parks, recreation, and library services 3,710,796 174,794 - - Police 12,988,649 177,075 392,714 -
Community development 1,469,814 828,546 673,902 185,055 Public works 6,326,063 1,707,535 1,456,357 1,587,423
Unallocated infrastructure depreciation 445,747 - - -
Interest on long-term liabilities 511,542 - - -
Total Governmental Activities 32,770,984 2,958,434 5,052,635 1,772,478

BUSINESS-TYPE ACTIVITIES
Water 4,938,644 6,766,909 - -
Interest on long-term liabilities 96,800 - - -
Total Business-Type Activities 5,035,444 6,766,909 - -
Total 37,806,428 $ 9,725,343 $ 5,052,635 $ 1,772,478 $

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
-20-
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Total
$ - (4,718,227) $ (4,718,227) $
- (3,536,002) (3,536,002)
- (12,418,860) (12,418,860)
- 217,689 217,689
- (1,574,748) (1,574,748)
- (445,747) (445,747)
- (511,542) (511,542)
- (22,987,437) (22,987,437)
1,828,265 - 1,828,265
(96,800) - (96,800)
1,731,465 - 1,731,465
1,731,465 (22,987,437) (21,255,972)
3,106,610 - 3,106,610
1,125,990 - 1,125,990
560,482 - 560,482
328,155 - 328,155
14,530 - 14,530
368,098 - 368,098
28,053,616 - 28,053,616
5,167,205 313,178 5,480,383
622,705 - 622,705
313,178 39,347,391 39,660,569
2,535,052 (2,535,052) -
4,579,695 13,824,902 18,404,597
23,618,675 140,673,208 164,291,883
$ 28,198,370 154,498,110 $ 182,696,480 $
City of Signal Hill
Balance Sheet
Governmental Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -21-
Housing Authority Capital Grants
Special Revenue Special Revenue
General Fund Fund
ASSETS
Cash and investments 63,438,163 $ 6,592,828 $ 5,103,632 $ Receivables:

Accounts 587,067 - -
Interest 721,932 - -
Due from other governments 5,506,249 - 142,000
Leases 23,866,057 - -
Loans - 1,679,031 -
Receivable due from Successor Agency - 7,409,966 -
Prepaid items 82,255 - -
Due from other funds 68,649 - -
Advances to other funds 3,762,681 - -
Land and improvements held for resale 425,001 615,641 - Restricted assets:

Cash and investments 334 - -
Total assets 105,868,354 $ 8,887,500 $ 5,245,632 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,272,338 $ 1,933 $ - $
Accrued liabilities 1,967,652 - -
Deposits payable 319,418 - -
Unearned revenue 6,904 30,000 5,245,632
Due to other funds - - -
Advances from other funds - 1,640,690 -
Total liabilities 3,566,312 1,672,623 5,245,632
Deferred inflows of resources:

Unavailable revenues 26,629,891 - 142,000
Total deferred inflows of resources 26,629,891 - 142,000 Fund balances (deficits):

Nonspendable 8,916,069 - -
Restricted - 7,214,877 -
Committed 35,118,638 - -
Unassigned 31,637,444 - (142,000)
Total Fund Balances (Deficits) 75,672,151 7,214,877 (142,000) Total Liabilities, Deferred Inflows of
Resources and Fund Balances 105,868,354 $ 8,887,500 $ 5,245,632 $ -22-
Capital
Improvement Other Total
Capital Projects Governmental Governmental
Fund Funds Funds
$ 11,181,094 1,062,270 $ 87,377,987 $
- - 587,067
600 - 722,532
262,375 - 5,910,624
- - 23,866,057
6,038 - 1,685,069
- - 7,409,966
- - 82,255
- - 68,649
1,633,786 - 5,396,467
- - 1,040,642
9 - 343
$ 13,083,902 1,062,270 $ 134,147,658 $
$ 69,215 545,920 $ 1,889,406 $
4,064 116,348 2,088,064
- - 319,418
1,633,786 - 6,916,322
68,649 - 68,649
- - 1,640,690
1,775,714 662,268 12,922,549
46,177 - 26,818,068
46,177 - 26,818,068
- - 8,916,069
11,307,588 400,002 18,922,467
- - 35,118,638
(45,577) - 31,449,867
11,262,011 400,002 94,407,041
$ 13,083,902 1,062,270 $ 134,147,658 $
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City of Signal Hill
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. -23-
Fund Balances - Total Governmental Funds $ 94,407,041
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 2,346,102
Infrastructure, net of accumulated depreciation 15,896,801 Structures and improvements, net of accumulated depreciation 35,915,388 Vehicles, equipment and furniture, net of accumulated depreciation 2,499,143 Total Capital Assets Used in Governmental Activities 92,176,757 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 accumulated amortization 14,998,955 Lease liability (13,068,961)
Subscription liability (2,364,727)
(434,733)
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. 4,386,971 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. 3,388,493 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 14,614,469
Deferred outflows of resources - OPEB 1,740,340
Deferred inflows of resources - pension (1,678,972)
Deferred inflows of resources - OPEB (1,457,458)
13,218,379
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 (17,244)
Revenue bonds payable (7,090,916)
Compensated absences (864,084)
Net pension liability (37,038,367)
Net OPEB liability (7,634,187)
(52,644,798)
Net Position of Governmental Activities $ 154,498,110
City of Signal Hill
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -24-
Housing Authority Capital Grants
Special Revenue Special Revenue
General Fund Fund

REVENUES
Property taxes 2,825,011 $ - $ - $
Sales and use tax 28,053,616 - -
Other taxes 2,087,625 - -
Licenses and permits 999,988 - -
Intergovernmental revenues 134,735 - 214,071
Charges for services 2,119,075 - -
Fines and forfeitures 134,471 - -
Investment income 4,912,215 367,977 -
Other revenue 622,705 - -
Total Revenues 41,889,441 367,977 214,071

EXPENDITURES
Current:

General government 6,461,369 - -
Parks, recreation, and library services 2,947,397 - -
Police 10,343,796 - -
Community development 1,188,415 4,520 -
Public works 5,740,956 - -
Capital outlay 1,517,901 - -
Debt service:

Principal 1,618,375 - -
Interest 568,005 - -
Total Expenditures 30,386,214 4,520 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 11,503,227 363,457 214,071

OTHER FINANCING SOURCES (USES)
Subscription acquisition 1,163,259 - -
Transfers in 242,795 375,777 -
Transfers out (1,816,865) - (154,389)
Total Other Financing Sources (Uses) (410,811) 375,777 (154,389) Net Changes in Fund Balances 11,092,416 739,234 59,682
Fund Balances (Deficit), Beginning 64,579,735 6,475,643 (201,682) Fund Balances (Deficit), Ending 75,672,151 $ 7,214,877 $ (142,000) $ -25-
Capital
Improvement Non-major Total
Capital Projects Governmental Governmental
Fund Funds Funds
$ - - $ 2,825,011 $
- - 28,053,616
374,433 - 2,462,058
- - 999,988
4,614,539 - 4,963,345
1,080,637 - 3,199,712
- - 134,471
582,143 - 5,862,335
- - 622,705
6,651,752 - 49,123,241
- - 6,461,369
- - 2,947,397
248,976 - 10,592,772
250,343 - 1,443,278
112,746 - 5,853,702
45,577 3,557,368 5,120,846
- - 1,618,375
- - 568,005
657,642 3,557,368 34,605,744
5,994,110 (3,557,368) 14,517,497
- - 1,163,259
14,095 3,557,368 4,190,035
(4,824,688) - (6,795,942)
(4,810,593) 3,557,368 (1,442,648)
1,183,517 - 13,074,849
10,078,494 400,002 81,332,192
$ 11,262,011 400,002 $ 94,407,041 $
City of Signal Hill
Reconciliation of the Statement of Revenues, expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
June 30, 2024
-26-
Net Change in Fund Balances - Total Governmental Funds 13,074,849 $ 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, net of disposals 4,829,917 $
Depreciation expense (1,963,501)
Amortization expense (945,321)
1,921,095
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 (1,163,259)
Repayment of revenue bonds 660,000
Repayment of subscription liability 734,707
Repayment of lease liability 223,668
455,116
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 (50,325)
Net change in accrued interest payable 33,414
Amortization of bond premium 23,049
6,138
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. (102,958)
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. 287,057
Pension expense reported in the governmental funds includes the employer contributions made to the City's pension plan. In the Statement of Activities, pension expense includes the change in the net pension liability and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (1,989,851) 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. 173,456
Change in Net Position of Governmental Activities 13,824,902 $ City of Signal Hill
Statement of Net Position
Proprietary Funds
June 30, 2024
-27-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
ASSETS
Current Assets:

Cash and investments $ 2,152,680 8,812,888 $
Accounts receivable, net 2,439 974,284
Prepaid items 36,216 -
Total Current Assets 2,191,335 9,787,172
Noncurrent assets:

Restricted cash and investments - 91
Capital assets:

Land - 4,427,416
Construction in progress 344,097 294,010
Depreciable assets, net of accumulated depreciation 25,197,316 1,186,241 Total Noncurrent Assets 1,530,338 29,918,833
Total Assets 3,721,673 39,706,005

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding - 23,834
Pension related 41,288 928,108
OPEB related 29,361 174,587
Total Deferred Outflows of Resources 70,649 1,126,529

LIABILITIES
Current Liabilities:

Accounts payable 127,068 2,171,827
Accrued liabilities 7,565 34,364
Accrued interest payable - 87,153
Deposits payable - 360,973
Advances from other funds - 3,755,777
Current portion of long-term liabilities - 764,321
Total Current Liabilities 134,633 7,174,415
Non-Current Liabilities:

Long-term liabilities, net of current portion 1,944,416 - Net pension liability 110,072 2,474,285
Net OPEB liability 128,796 765,844
Total Long-term Liabilities 238,868 5,184,545
Total Liabilities 373,501 12,358,960

DEFERRED INFLOWS OF RESOURCES
Pension related 5,739 128,995
OPEB related 24,589 146,209
Total Deferred Inflows of Resources 30,328 275,204

NET POSITION
Net investment in capital assets 1,416,104 27,073,694
Unrestricted 1,972,389 1,124,676
Total Net Position $ 3,388,493 28,198,370 $
City of Signal Hill
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2024
-28-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund

OPERATING REVENUES
Charges for services 6,677,151 $ 679,523 $
Other operating revenues 89,758 5,838
Total Operating Revenues 6,766,909 685,361

OPERATING EXPENSES
Personnel services 711,307 199,552
Contractual services 474,366 15,943
Supplies 1,293,153 55,410
Material and repairs 693,651 78,058
Utilities 249,381 688
Depreciation/amortization 950,428 208,591
Other 566,358 21,572
Total Operating Expenses 4,938,644 579,814
OPERATING INCOME 105,547 1,828,265

NONOPERATING REVENUES (EXPENSES)
Investment income 313,178 110,655
Interest expense (96,800) -
Total Nonoperating Revenues (Expenses) 216,378 110,655
Income Before Transfers 2,044,643 216,202

TRANSFERS
Transfers in 2,535,052 70,855
Changes in Net Position 4,579,695 287,057
Net position, beginning of year 23,618,675 3,101,436
Net position, end of year 28,198,370 $ 3,388,493 $
City of Signal Hill
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
-29-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 6,763,615 $ - $
Receipts from interfund services provided - 685,523
Payments to suppliers (1,747,574) (223,534)
Payments to employees (1,145,967) (197,537)
Net Cash Provided by Operating Activities 3,870,074 264,452

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Cash received from other funds 2,404,442 70,855
Net Cash Provided by Noncapital and
Related Financing Activities 2,404,442 70,855

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition/construction of capital assets (2,800,138) (597,437) Principal paid - (665,339)
Interest paid - (102,841)
Net Cash Used for Capital and
Related Financing Activities (3,568,318) (597,437)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 110,655 313,178
Change in fair value of investments - -
Net Cash Provided by Investing Activities 313,178 110,655 Net increase (decrease) in cash and cash equivalents 3,019,376 (151,475) Cash and cash equivalents, beginning of year 2,304,155 5,793,603 Cash and cash equivalents, end of year $ 2,152,680 8,812,979 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO

AMOUNTS REPORTED ON THE STATEMENT OF NET POSITION
Cash and investments 8,812,888 $ 2,152,680 $
Restricted cash and investments 91 -
Cash and Cash Equivalents at End of Fiscal Year $ 2,152,680 8,812,979 $ City of Signal Hill
Statement of Cash Flows, (Continued)
Proprietary Funds
For the Year Ended June 30, 2024
-30-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund

RECONCILIATION OF OPERATING INCOME TO NET CASH

PROVIDED BY OPERATING ACTIVITIES
Operating income 1,828,265 $ 105,547 $
Depreciation/amortization 950,428 208,591
Change in assets, deferred outflows of resources, liabilities and deferred inflows of resources:
(Increase) decrease in assets:

Accounts receivable, net (3,294) 162
Prepaid items (12,832) -
Deferred outflows of resources 316,731 15,029
Increase (decrease) in liabilities:

Accounts payable 1,529,930 (39,031)
Accrued liabilities (23,573) 3,319
Deposits payable - (595)
Compensated absences 1,924 -
Deferred inflows of resources (137,009) (2,068)
Net pension liability (35,457) (481,604)
Net OPEB liability 21,192 (111,129)
Net Cash Provided by Operating Activities 3,870,074 $ 264,452 $ City of Signal Hill
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
The accompanying notes are an integral part of these financial statements. -31-
Successor
Agency to the
Signal Hill
Redevelopment Other
Agency to the Postemployment
Private-Purpose Benefit
Trust Fund Trust Fund
ASSETS
Cash and investments 7,015,656 $ 4,421,182 $
Restricted cash and investments 8,117,109 -
Accounts receivable - -
Capital assets:

Land 10,956,485 -
Total Assets 26,089,250 4,421,182

DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding 277,472 -
Total Deferred Outflows of Resources 277,472 -

LIABILITIES
Accounts payable 2,506,200 -
Accrued liabilities 1,185,753 -
Accrued interest payable 269,673 -
Long-term liabilities:

Due within one year 6,907,952 -
Due in more than one year 14,238,303 -
Payable to the City of Signal Hill 7,409,966 -
Total Liabilities 32,517,847 -

NET POSITION (DEFICIT)
Held in Trust (6,151,125) -
Restricted for OPEB Trust - 4,421,182
Total Net Position (6,151,125) $ 4,421,182 $
City of Signal Hill
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
The accompanying notes are an integral part of these financial statements. -32-
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 12,963,486 $ - $
Contributions - employer - 952,755
Contributions - employee - 73,997
Investment earnings 308,564 539,305
Total Additions 13,272,050 1,566,057

DEDUCTIONS
Personnel services 313,336 877,754
Contractual services 11,540 -
Project costs 2,385,985 -
Interest 1,058,603 -
Administrative expenses - 10,686
Other expense - 3,005
Total Deductions 3,769,464 891,445
Change in Net Position 9,502,586 674,612
Net Position (Deficit), Beginning of Year 3,746,570 (15,653,711) Net Position (Deficit), End of Year $ 4,421,182 (6,151,125) $

NOTES TO THE FINANCIAL STATEMENTS
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City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-33-
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.

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.
 The City, Financing Authority, Housing Authority, and Municipal Financing Authority are financially interdependent.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-34-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) B) Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements.

C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements.

Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (current and long term) are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year in which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements imposed by the provider have been met.

Proprietary funds distinguish operating revenues and expenses from nonoperating items.

Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water enterprise fund and of the government's internal service funds are charges to customers for services. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-35-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, (Continued)
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.

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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-36-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation, (Continued)
The City reports the following major enterprise fund:

The Water Enterprise Fund is used to account for financial activity relative to the purchase, production, storage and distribution of water used by the community, as well as the maintenance, repair and replacement of related equipment and pipeline. Revenues consist primarily of water sales.

Additionally, the City reports the following fund types:

Proprietary Funds
The Vehicle and Equipment Internal Service Fund is used to account for the furnishing of vehicle and equipment services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such vehicles and equipment are used or services rendered.

Fiduciary Funds
The Successor Agency to the Signal Hill Redevelopment Agency Private Purpose Trust Fund is used to account for the county auditor controller's semi-annual property tax distributions from the Redevelopment Property Tax Trust Fund of the Successor Agency of the former Signal Hill Redevelopment Agency to pay amounts due on enforceable obligations and to pay for specified administrative costs.

The Other Postemployment Benefit Trust Fund is used to account for resources that are held in an irrevocable trust for the benefit of participants in the City's other postemployment benefit plan.

D) Implementation of New Accounting Pronouncements
For the fiscal year ended June 30, 2024, the financial statements include the adoption of GASB Statement No. 100 Accounting Changes and Error Corrections. The purpose of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The implementation of this pronouncement had no impact on the City’s net position.

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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-37-
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, 2024, a increase in fair value of $1,168,661 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 three years. 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
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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-38-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) 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.

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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-39-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) 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 straight-line 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 accrued balances.

The City does not reimburse for unused sick pay upon an employee's separation other than for retirement. The percentage pay-off at retirement varies based on employee group agreements and/or years of service of employment. The City has an annual cash- out program ranging from 48 - 80 annual maximum hours for its employees based on tiered, years of service of employment. The balance of unused sick pay at fiscal year- end for those employees who meet minimum eligibility requirements, is recorded as a long-term liability, as these amounts will be liquidated from future resources rather than expendable available resources.

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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-40-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued)

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.

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 for Fiscal Year 2023-24, 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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-41-
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 yearend, 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, 2024, net investment in capital assets, was determined as follows:

Governmental Business-Type
Activities Activity
Capital assets, net of accumulated depreciation
and amortization 108,706,050 $ 29,918,742 $
Less:

Bonds, net of unamortized premiums and discounts (7,090,916) (1,146,576) Leases payable (13,068,961) -
Subscriptions payable (2,364,727) (146,852)
Loan payable - (1,360,465)
Accounts payable related to capital assets (2,045,626) (92,648) Retentions payable related to capital assets (52,677) (122,341) Add Back:

Unamortized deferred loss amount on debt refunding - 23,834 Total 84,083,143 $ 27,073,694 $
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-42-
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (Continued) S) Net Position (Continued)
 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.

NOTE 2 CASH AND INVESTMENTS
Cash and Investments
Cash and investments at June 30, 2024 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 98,343,555 $ 11,436,838 $ 109,780,393 $ Restricted cash and investment 434 8,117,109 8,117,543
Total Cash and Investments 98,343,989 $ 19,553,947 $ 117,897,936 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-43-
NOTE 2 CASH AND INVESTMENTS, (Continued)
Cash and investments at June 30, 2024 consisted of the following:

Cash on hand $ 8,176
Deposits with financial institutions 7,047,712
Investments 110,842,048
Total Cash and Investments 117,897,936 $
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 California Asset Management Program (CAMP) N/A None None Mutual Funds N/A 20% 10%
County Pooled Funds N/A None None
N/A - Not Applicable
* Excluding amounts held by bond trustee that are not subject to California Government Code restrictions
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments authorized for funds held by bond trustee include, United States Treasury Obligations, United States Government Sponsored Agency Securities, Guaranteed Investment Contracts, Commercial Paper, Local Agency Bonds, Banker's Acceptance and Money Market Mutual Funds. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker's Acceptance which are limited to one year.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-44-
NOTE 2 CASH AND INVESTMENTS, (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

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 37,794,476 $ 37,794,476 $ - $ - $ California Asset Management Program 24,725,762 24,725,762 - - US Government Agency Securities 12,372,863 2,445,250 3,777,841 6,149,772 Domestic Certificates of Deposit 10,551,727 1,955,611 2,837,661 5,758,455 Money Market Mutual Funds 9,581,175 9,581,175 - -
Municipal Obligations 2,294,888 - - 2,294,888
Supranationals 5,403,614 - 991,373 4,412,241
Held by Trustees:

Money Market Mutual Funds 8,117,543 8,117,543 - -
Total 110,842,048 $ 84,619,817 $ 7,606,875 $ 18,615,356 $ 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, 2024 Rating AAA AA+ Rated
Local Agency Investment Fund 37,794,476 $ N/A - $ - $ 37,794,476 $ California Asset Management Program 24,725,762 N/A - - 24,725,762 US Government Agency Securities 12,372,863 AA 12,372,863 - - Domestic Certificates of Deposit 10,551,727 N/A - - 10,551,727 Money Market Mutual Funds 9,581,175 AAA - - 9,581,175
Municipal Obligations 2,294,888 A 2,294,888 - -
Supranationals 5,403,614 AA 5,403,614 - -
Held by Trustees:

Money Market Mutual Funds 8,117,543 AAA - - 8,117,543
Total 110,842,048 $ 17,776,477 $ 2,294,888 $ 90,770,683 $ 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 and Goldman Sachs Financial Square represented 7.27% and 6.21%, respectively of total City's investments. All other issuers were individually less than 5% of the total City’s investments.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-45-
NOTE 2 CASH AND INVESTMENTS, (Continued)
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, 2024, the City deposits (bank balances) were insured by the Federal Deposit Insurance Corporation and the remaining balances were collateralized under California Law.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro- rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Investment in California Management Program Pool
The City is a voluntary participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Trust’s activities are directed by a Board of Trustees, all of whom are employees of the California public agencies which are participants in the Trust. The Pool’s investments are limited to investments permitted by subdivision (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share. CAMP is not registered with the Securities and Exchange Commission.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-46-
NOTE 2 CASH AND INVESTMENTS, (Continued)
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 positive $1,168,661 fair value adjustment recognized as of June 30, 2024:

Quoted Observable Unobservable
Prices Inputs Inputs
Total Level 1 Level 2 Level 3
U.S. Government Agency Securities 12,372,863 $ - $ 12,372,863 $ - $ Municipal Bonds 2,294,888 - 2,294,888 -
Supranationals 5,403,614 - 5,403,614 -
- 20,071,365 $ 20,071,365 $ - $
Local Agency Investment Fund* 37,794,476
California Asset Management Program* 24,725,762
Domestic Certificates of Deposit* 10,551,727
Money Market Mutual Funds* 9,581,175
Held by Trustees:

Money Market Mutual Funds* 8,117,543
Total 110,842,048 $
* 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, 2024 was a positive 14.13%. The annual money-weighted rate of return expresses investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-47-
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024 was as follows:

Governmental Activities:

Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated:

Land 35,519,323 $ - $ - $ 35,519,323 $
Construction in progress 3,142,305 3,877,707 (4,329,813) 2,690,199 Total capital assets, not
being depreciated 38,661,628 3,877,707 (4,329,813) 38,209,522 Capital assets, being depreciated and
amortized:

Structure and improvements 50,571,793 168,868 - 50,740,661 Equipment and furniture 4,901,135 53,623 - 4,954,758
Vehicles and major equipment 3,258,462 277,096 (85,624) 3,449,934 Right-to-use lease assets 13,751,032 - - 13,751,032
Right-to-use subscription assets 2,195,174 1,192,110 (8,274) 3,379,010 Infrastructure 31,180,412 4,188,931 - 35,369,343
Total capital assets, being depreciated
and amortized 105,858,008 5,880,628 (93,898) 111,644,738 Less accumulated depreciation and
amortization for:

Structure and improvements (13,195,151) (1,225,032) - (14,420,183) Equipment and furniture (2,382,264) (303,542) - (2,685,806) Vehicles and major equipment (2,326,445) (197,771) 85,624 (2,438,592) Right-to-use lease assets (799,316) (397,932) - (1,197,248) Right-to-use subscription assets (393,556) (547,389) 7,106 (933,839) Infrastructure (19,026,795) (445,747) - (19,472,542)
Total accumulated depreciation
and amortization (38,123,527) (3,117,413) 92,730 (41,148,210) Total capital assets, being
depreciated and amortized, net 67,734,481 2,763,215 (1,168) 70,496,528 Total capital assets, net 106,396,109 $ 6,640,922 $ (4,330,981) $ 108,706,050 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-48-
NOTE 3 CAPITAL ASSETS, (Continued)
Business-Type Activities:

Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not being depreciated:

Land 4,427,416 $ - $ - $ 4,427,416 $
Construction in progress 686,161 2,800,138 (3,192,289) 294,010 Total capital assets, not
being depreciated 5,113,577 2,800,138 (3,192,289) 4,721,426 Capital assets, being depreciated and
amortized:

Water rights 1,215,186 - - 1,215,186
Reservoirs and tanks 12,174,543 - - 12,174,543
Wells 14,943,507 - - 14,943,507
Mains 9,893,973 2,732,146 12,626,119
Pumps 1,384,407 - - 1,384,407
Fire hydrants 564,667 - - 564,667
Meters 429,048 460,143 (429,048) 460,143
Services 1,443,630 - - 1,443,630
Structures 1,243,976 - - 1,243,976
Right-to-use subscription assets 69,838 105,388 - 175,226 Equipment and furniture 1,137,472 - - 1,137,472
Total capital assets, being depreciated
and amortized 44,500,247 3,297,677 (429,048) 47,368,876 Less accumulated depreciation and
amortization for:

Water rights (971,253) (30,380) - (1,001,633)
Reservoirs and tanks (6,223,045) (262,680) - (6,485,725) Wells (2,373,133) (365,338) - (2,738,471)
Mains (6,992,343) (183,317) - (7,175,660)
Pumps (1,264,812) (27,425) - (1,292,237)
Fire hydrants (561,647) (731) - (562,378)
Meters (429,048) - 429,048 -
Services (992,957) (27,579) - (1,020,536)
Structures (750,632) (28,673) - (779,305)
Right-to-use subscription assets (15,964) (19,770) - (35,734) Equipment and furniture (1,075,346) (4,535) - (1,079,881) Total accumulated depreciation
and amortization (21,650,180) (950,428) 429,048 (22,171,560) Total capital assets, being
depreciated and amortized, net 22,850,067 2,347,249 - 25,197,316 Total capital assets, net 27,963,644 $ 5,147,387 $ (3,192,289) $ 29,918,742 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-49-
NOTE 3 CAPITAL ASSETS, (Continued)
Depreciation/Amortization Expense
Depreciation/amortization expense was charged to City functions/programs as follows:

Governmental Activities:

General government 120,363 $
Parks, recreation, and library services 690,285
Police 1,623,248
Public works 29,179
Internal service fund depreciation charges
to programs 208,591
Allocated depreciation 2,671,666
Unallocated infrastructure depreciation 445,747
Total depreciation and amortization expense -
governmental activities 3,117,413 $
Business-Type Activity:

Water 950,428 $
NOTE 4 UNAVAILABLE REVENUES
At June 30, 2024, 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 22,431,097 $ - $ - $ 22,431,097 $ Unavailable grant revenue - 142,000 45,577 187,577
Unavailable interest long-term
notes receivable 4,198,794 - 600 4,199,394
Total 26,629,891 $ 142,000 $ 46,177 $ 26,818,068 $
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-50-
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 7,409,966 $
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 $6,038 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, 2024 was $9,568,085 (including accrued interest of $1,977,395). The City also set up an allowance for doubtful accounts, on this loan of $7,927,395.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-51-
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 $6,075 to $22,577, are received monthly. During the year ended June 30, 2024, the City recognized $446,812 and $470,945 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, 2024, was as follows:

Balance at Balance at Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year Governmental activities:

Other debt:
2018 Library Lease Revenue Bonds 7,555,000 $ - $ (660,000) $ 6,895,000 $ 680,000 $ Plus 2018 Original Issue Premium 218,965 - (23,049) 195,916 23,049 Total Library Lease Revenue Bonds 7,773,965 - (683,049) 7,090,916 703,049 Other long-term liabilities:

Leases payable 13,292,629 - (223,668) 13,068,961 231,703 Subscriptions payable 1,936,175 1,163,259 (734,707) 2,364,727 563,819 Compensated absences 813,759 78,039 (27,714) 864,084 432,042 Total Governmental-Type Activity 23,816,528 $ 1,241,298 $ (1,669,138) $ 23,388,688 $ 1,930,613 $ Business-Type activity:

Other debt:
2016 Water Revenue Refunding Bonds 1,585,000 $ - $ (510,000) $ 1,075,000 $ 530,000 $ Plus 2016 Original Issue Premium 123,631 - (52,055) 71,576 52,055 Total Refunding Bonds Payable 1,708,631 - (562,055) 1,146,576 582,055 Other long-term liabilities:

WRD loan - direct borrowing 1,500,000 - (139,535) 1,360,465 139,535 Subscriptions payable 57,268 105,799 (16,215) 146,852 16,271 Compensated absences 52,920 6,781 (4,857) 54,844 26,460 Total Business-Type Activity $ 112,580 3,318,819 $ (722,662) $ 2,708,737 $ 764,321 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-52-
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, 2024, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 760,000 120,950 880,950
2030-2032 3,300,000 230,900 3,530,900
Total 6,895,000 $ 1,038,388 $ 7,933,388 $
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
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 270,545 244,303 514,848
2030-2034 1,533,915 1,131,693 2,665,608
2035-2039 1,817,974 960,646 2,778,620
2040-2044 2,138,794 758,925 2,897,719
2045-2049 2,498,538 522,350 3,020,888
2050-2054 2,891,520 247,238 3,138,758
2055-2056 912,753 14,462 927,215
Total 13,068,961 $ 4,910,144 $ 17,979,105 $
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-53-
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 October 31, 2032. The net present values of the subscriptions payable were determined using discount rates ranging from

1.7100% - 3.1440%. Monthly subscription payments total $62,445. The subscription provide for increases in future minimum monthly rental payments subject to stated increases.

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

Year Ending
June 30, Principal Interest Total
2025 563,819 $ 67,644 $ 631,463 $
2026 418,086 56,795 474,881
2027 437,247 42,016 479,263
2028 463,517 26,489 490,006
2029 138,435 10,051 148,486
2030-2033 343,623 11,861 355,484
Total 2,364,727 $ 214,856 $ 2,579,583 $
Total future minimum subscription payments under business-type subscription agreements are as follows:

Year Ending
June 30, Principal Interest Total
2025 16,271 $ 3,091 $ 19,362 $
2026 14,052 2,737 16,789
2027 14,846 2,427 17,273
2028 16,044 2,093 18,137
2029 17,311 1,733 19,044
2030-2033 68,328 2,848 71,176
Total 146,852 $ 14,929 $ 161,781 $
D) Compensated Absences
There is no fixed payment schedule for earned but unpaid compensated absences in both the governmental and business type activities.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-54-
NOTE 6 LONG-TERM LIABILITIES, (Continued)
E) WRD Loan Payable
On February 14, 2023, the City obtained a 10-year, zero-interest loan in the amount of $1,500,000 from the Water Replenishment District. Principal payments of $150,000 are due annually. The proceeds from the loan are being used to construct a new water well. Loan repayments began following the project's completion in 2023, with the first payment made in July 2023. The total amount outstanding as of June 30, 2024 is $1,360,465. The loan agreement specifies, in the 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.

Year Ending
June 30, Principal Interest Total
2025 530,000 $ 42,800 $ 572,800 $
2026 545,000 10,900 555,900
Total 1,075,000 $ 53,700 $ 1,128,700 $
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2024, is as follows:

Due From/To Other Funds
Receivable Fund Payable Fund Amount
General Fund Other governmental funds 68,649 $
$ 68,649
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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-55-
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS, (Continued) Advances To/From Other Funds
Advances receivable and payable balances at June 30, 2024, are as follows:

Receivable Fund Payable Fund Amount
General Fund Water Enterprise Fund 3,755,777 $
General Fund Housing Authority Special Revenue Fund 6,904 Other governmental funds Housing Authority Special Revenue Fund 1,633,786 $ 5,396,467
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 2022-23, 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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-56-
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS, (Continued) lnterfund Transfers
Transfer In to Fund Transfers Out of Fund Amount
General Fund Other governmental funds 242,795 $ (b)
Housing Authority
Special Revenue Fund General Fund 375,777 (c)
Other governmental funds General Fund 14,095 (b)
Capital Improvement
Capital Projects Fund General Fund 1,406,227 (a)
Capital Grants Special Revenue Fund 154,389 (a)
Other governmental funds 1,996,752 (a)
Water Enterprise Fund General Fund 20,766 (a)
Other governmental funds 2,514,286 (a)
Internal Service Fund Other governmental funds 70,855 (d) Total $ 6,795,942
(b) To provide funds for ongoing city programs.

The purposes for significant interfund transfers made during the fiscal year ended June 30, 2024 were as follows:
(a) To provide funds for various capital projects in accordance with the City's capital improvement program.
(d) To provide funds to the Vehicle and Equipment Internal Service Fund for the purchase of a vehicle. (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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-57-
NOTE 8 INDIVIDUAL FUND DISCLOSURES
Expenditures Exceeding Appropriations
For the year ended June 30, 2024, expenditures exceeded appropriations in the following programs (the legal level of budgetary control):

Special revenue fund
Supplemental Law Enforcement 19,811 $
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 has a deficit fund balances of $142,000 at year-end. The Public Safety Grant Special Revenue fund has a deficit of $45,577 at year-end. The deficits in both funds 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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-58-
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 full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for 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 2.7%@55 2%@62
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50-63 50-55 52-67
Monthly Benefits, as a % of Eligible
Compensation 1.42% to 2.42% 2.00% to 2.70% 1.00% to 2.50% Required Employee Contribution Rates 7% 7% 6.75%
Required Employer Contribution Rates:

Normal Cost Rate 12.470% 10.660% 7.680%
Payment of Unfunded Liability $ 45,208 1,541,948 $ 33,559 $ 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 50-57
Monthly Benefits, as a % of Eligible
Compensation 3.0% 3.00% 2.00% to 2.70%
Required Employee Contribution Rates 9% 9% 13.75%
Required Employer Contribution Rates:

Normal Cost Rate 29.090% 26.110% 14.500%
Payment of Unfunded Liability $ 20,079 1,971,199 $ 43,387 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-59-
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, 2024, the City made contributions totaling $3,761,999 ($1,668,313 Miscellaneous Plan and $2,093,686 Safety Plan).

B) Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows.

Actuarial Methods and Assumptions
The collective total pension liability for the June 30, 2023 measurement period was determined by an actuarial valuation as of June 30, 2022, with update procedures used to roll forward the total pension liability to June 30, 2023. The collective total pension liability was based on the following assumptions:

Miscellaneous
Valuation Date June 30, 2022
Measurement Date June 30, 2023
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 Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.

The mortality table used was based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Morality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-60-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
B) Net Pension Liability, (Continued)
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.

The expected real rates of return by asset class are as follows:

Assumed
Asset Real
Asset Class Allocation Return 1,2
Global equity - cap-weighted 30% 4.54%
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%
2 Figures are based on the 2021 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-61-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
B) Net Pension Liability, (Continued)
Change of Assumptions
There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 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 longterm market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014.

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.

Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.

Pension Plan Fiduciary Net Position
Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Investments are reported at fair value.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-62-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
C) Proportionate Share of Net Pension Liability
The following table shows the City’s proportionate share of the Plan’s net pension liability over the measurement period.

Proportionate
Share of
Net Pension
Liability
Miscellaneous 17,410,192 $
Safety 22,212,532
Total Net Pension Liability 39,622,724 $
The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov.

The City’s proportionate share of the net pension liability for all Plans as of the June 30, 2022 and 2023 measurement dates were as follows:

Miscellaneous Safety Total
Proportion - June 30, 2022 0.34806% 0.30084% 0.64890%
Proportion - June 30, 2023 0.34817% 0.29716% 0.64533%
Change - Increase (Decrease) 0.00011% -0.00368% -0.00357% 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 of all Plans as of the measurement date, calculated using the discount rate of 6.9 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.9 percent) or 1 percentage-point higher (7.9 percent) than the current rate:

Miscellaneous Safety Total
1% Decrease 5.90% 5.90%
Net Pension Liability 25,855,945 $ 31,934,263 $ 57,790,208 $ Current Discount Rate 6.90% 6.90%
Net Pension Liability 17,410,192 $ 22,212,532 $ 39,622,724 $ 1% Increase 7.90% 7.90%
Net Pension Liability 10,458,612 $ 14,264,326 $ 24,722,938 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-63-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
C) Proportionate Share of Net Pension Liability, (Continued) Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Net difference between
projected and actual
earnings on pension plan
investments
5-year straight-line amortization
All other amounts Straight-line amortization over the expected average remaining service lives (EARSL) of all
members that are provided with benefits (active,
inactive and retired) as of the beginning of the
measurement period
The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which was obtained by dividing the total service years of 600,538 (the sum of remaining service lifetimes of the active employees) by 160,073 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to

0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-64-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
D) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2022), the City’s net pension liability was $36,959,054. For the measurement period ending June 30, 2022 (the measurement date), the Local Government incurred a pension expense of $5,882,589.

As of June 30, 2024, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date 4,240,413 $ - $ Differences between expected and actual experience 2,520,216 (277,583) Changes in assumptions 2,347,485 -
Change in employer's proportion 500,137 (129,986)
Differences between the employer's contributions and the Employer's proportionate share of contributions 116,968 (1,406,137) Net differences between projected and actual
earnings on Plan investments 5,858,646 -
Total 15,583,865 $ (1,813,706) $
The amounts above are net of outflows and inflows recognized in the 2022-23 measurement period expense. Contributions subsequent to the measurement date of $4,240,413 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Year Ending
June 30, Amount
2025 2,782,964 $
2026 2,022,302
2027 4,558,749
2028 165,731
2029 -
Thereafter -
E) Payable to the Pension Plan
At June 30, 2024, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-65-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
A) Plan Description
In addition to providing pension benefits, the City provides certain health care benefits for retired employees through the California Public Employees Medical and Hospital Care Act (PEMCHA) in accordance with a City Council resolution. Substantially all of the City's employees become eligible for those benefits if they reach normal retirement age while working for the City. Those, and similar benefits for active employees, are provided through PERS whose premiums are based on the benefits paid during the year. The City has established a single-employer OPEB trust to accumulate assets to assist with the payment of future benefits under the OPEB Plan.

The OPEB Trust is reported as a fiduciary fund of the City. A separate stand-alone financial report is not issued for this OPEB plan.

Retiree health care coverage is segregated into three tiers as follows:

Tier 1 - Employees Hired Before January 1, 2006 (1)
 Employee age 50 or over with 5 years of PERS service receive up to $885 per month.

Tier 2 - Employees Hired On or After January 1, 2006 (1) and prior to April 7, 2010  Employees with less than 5 years of service with Signal Hill, but who are vested with PERS are eligible to receive the minimum monthly premium mandated by PERS (currently $157 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 $157 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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-66-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) A) Plan Description, (Continued)
 Employees with 16-19 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 50% of the monthly benefit applicable towards the employee and one dependent provided that employee plus one dependent coverage was in effect upon the date of retirement.  Employees with over 20 years of PERS service (combined City service plus 50% credit for service with another PERS agency) shall be eligible to receive 75% of the monthly benefit applicable towards the employee and one dependent provided that employee plus one dependent coverage was in effect upon the date of retirement.

B) Eligibility
Employees of the City are eligible for retiree health benefits if they are at least 50 years of age for classic members and at least 52 years of age for PEPRA members as of the last day of work prior to retirement and are a vested member of CalPERS. Membership in the plan consisted of the following, for the measurement period ended June 30, 2024:

Inactive employees or beneficiaries currently
receiving benefit payments 92
Active Plan members 92
Total 184
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, 2024, the measurement period, the City contributed $730,892 (retirement premiums paid on a pay-as-you-go basis of $655,891, contributions to the OPEB trust of $75,001, and an estimated implicit rate subsidy of $221,863) and City employees contributed $73,997 to the OPEB trust.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-67-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) D) Net OPEB Liability
Actuarial Assumptions
For the measurement period ended June 30, 2024 (the measurement date), the total OPEB liability was determined by an actuarial accounting valuation performed as of June 30, 2023. The June 30, 2024 total OPEB liability was based on the following actuarial methods and assumptions:

Inflation 2.30%
Salary Increase 2.80%
Investment Rate of Return 5.75%
Healthcare Cost Trend Rates Assumed 7.4% 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 2021.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-68-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) D) Net OPEB Liability, (Continued)
Changes in Assumptions
For the measurement period ended June 30, 2024, 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 long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Expected
Target Real Rate
Asset Class Allocation of Return
Global equity 60.0% 7.10%
Fixed income 38.0% 3.50%
Cash 2.0% 2.70%
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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-69-
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, 2023 12,713,575 $ 3,746,570 $ 8,967,005 $ Changes in the Fiscal Year:

Service Cost 312,255 - 312,255
Interest on the total OPEB liability 723,750 - 723,750
Changes of assumptions (208,684) - (208,684)
Difference between expected and
actual experience 286,867 - 286,867
Contribution from the employer - 952,755 (952,755)
Contribution from the employees - 73,997 (73,997)
Net investment income - 539,305 (539,305)
Benefit payments (655,891) (655,891) -
Implicit Subsidy Credit (221,863) (221,863) -
Administrative expenses - (10,686) 10,686
Other Miscellaneous Income/Exp - (3,005) 3,005
Net Changes 236,434 674,612 (438,178)
Balance at June 30, 2024 12,950,009 $ 4,421,182 $ 8,528,827 $ There is sensitivity of the net OPEB liability due to changes in the discount rate and health-care cost trend rates. The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1 percentage- point higher than the current discount rate:

Current
1% Decrease Discount Rate 1% Increase

4.75% 5.75% 6.75%
Net OPEB liability 9,921,278 $ 8,528,827 $ 7,343,154 $
Health-Care
Cost
1% Decrease Trend Rate 1% Increase

6.40% 7.40% 8.40%
Net OPEB liability 7,824,753 $ 8,528,827 $ 9,177,259 $
City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-70-
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 June 30, 2024, the City recognized OPEB expense of $712,661. At June 30, 2024, 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 321,239 $ (796,740) $ Changes of assumptions 1,623,049 (673,443)
Net differences between projected and actual
earnings on Plan investments - (158,073)
Total 1,944,288 $ (1,628,256) $
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
2025 (37,148) $
2026 70,861
2027 (13,467)
2028 150,605
2029 16,178
Thereafter 129,003
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 $8,669 were made to these plans during the current fiscal year.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-71-
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. The City has also made available a defined contribution plan, created in accordance with Internal Revenue Code Section 401(a), whereby the City contributes into the 401(a) plan only 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 $64,089 for the fiscal year ended June 30, 2024. Funds in both plans may be withdrawn by participants upon termination of employment or retirement.

Amounts contributed to the 457(b) plan and 401(a) plan are deposited regularly with 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(b) 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. Assets held in the 457(b) and 401(a) plans are exclusively held for the benefit of plan participants and are not considered a City asset, therefore the plan assets and liabilities are not reported in the City's financial statements.

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City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
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NOTE 13 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The various fund balance classifications as of June 30, 2024 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 3,211,172 $ - $ - $ - $ - $ Prepaid items 82,255 - - - -
Leases receivable, net of
unavailable revenues 1,434,960 - - - -
Advances to other funds 3,762,681 - - - -
Land and improvements
held for resale, net 425,001 - - - -
Total 8,916,069 - - - -
Restricted for:

Low and moderate
income housing - 7,214,877 - - -
Public protection - - - - 23,533
Development impact - - - - 3,568,636
Transportation - - - - 4,928,154
Capital improvements - - - 400,002 2,787,265
Total - 7,214,877 - 400,002 11,307,588
Committed for:

Debt service 2,209,852 - - - -
Economic uncertainty 5,413,093 - - - -
Building and land acquisition 2,644,398 - - - -
Equipment replacement 43,748 - - - -
Capital improvements 5,199,630 - - - -
Insurance premium increases 828,372 - - - -
CalPERS rate increases 3,283,966 - - - -
OPEB future costs 1,521,444 - - - -
Park expansion 741,121 - - - -
Police radio/system reserve 1,431,007 - - - -
Library expansion 8,450,348 - - - -
100th anniversary 50,000 - - - -
General Plan 345,257 - - - -
Economic development 1,208,150 - - - -
Workforce Innovation 1,228,041 - - - -
Facility reserve 368,755
Art reserve 150,000
NPDES issues 1,456 - - - -
Total 35,118,638 - - - -
Unassigned 31,637,444 - (142,000) - (45,577)
Total 75,672,151 $ 7,214,877 $ (142,000) $ 400,002 $ 11,262,011 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-73-
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 self-insurance, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the Authority's website: https://cjpia.org/coverage/risk-sharing-pools/.

Workers' Compensation
Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members.

A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-74-
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 2023-24 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 $97,244,112. 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 $63,951,038. 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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-75-
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 2023-24.

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 2023-24, 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 2023-24, the City expended $406,633 in parks development fees, $67,937 in traffic impact fees and $0 in water development fees. At June 30, 2024, the fund balances for the Parks Development Impact Fund was $752,000, for the Traffic Impact Fund was $980,533 and for the Water Development Impact Fund was $1,047,200.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
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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, 2024, the City abated local sales tax totaling $2,631,422.

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, 2024 was as follows:

Balance at Balance at
June 30, 2023 Additions Deletions June 30, 2024
Capital assets, not
being depreciated:

Land 10,956,485 $ - $ - $ 10,956,485 $
Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2024 was as follows:

Balance at Balance at Due Within
June 30, 2023 Additions Deletions June 30, 2024 One Year Other debt:

Bonds payable:
2006 TABs 9,960,000 $ - $ (350,000) $ 9,610,000 $ 3,025,000 $ 2011 Tax Allocation Parity Bonds 2,930,000 - (760,000) 2,170,000 675,000 2015 Refunding TABs Series A 2,435,000 - (2,435,000) - - 2015 Refunding TABs Series B 1,120,000 - (110,000) 1,010,000 1,010,000 2017 Refunding TABs 10,475,000 - (2,745,000) 7,730,000 1,920,000 Less Original Issuance Discounts (41,589) - 14,494 (27,095) (12,425) Add Premium on Bonds 1,019,813 - (366,463) 653,350 290,377 Total Bonds Payable 27,898,224 - (6,751,969) 21,146,255 6,907,952 Direct borrowings:

Loan payable to the City of
Signal Hill 9,192,507 96,345 (1,878,886) 7,409,966 -
Total Long-Term Liabilities 37,090,731 $ 96,345 $ (8,630,855) $ 28,556,221 $ 6,907,952 $ City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-77-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
A) 2006 Tax Allocation Bonds
On September 7, 2006, the Agency issued the 2006 Taxable Tax Allocation Parity Bonds, Series A (2006 Bonds) in the amount of $13,500,000. Proceeds of the 2006 Taxable Tax Allocation Parity Bonds were used to (i) finance redevelopment activities of the Agency within or of benefit to the Redevelopment Project, (ii) satisfy the Reserve Requirement for the Bonds and (iii) provide for the cost of issuing the Bonds.
$1,845,000 of 2006 term bonds matured October 1, 2016 and bore interest payable semiannually at a rate of 5.581%. $11,660,000 of 2006 D term bonds mature October 1, 2026 and bear interest payable semiannually at a rate of 5.839%. The 2006 Bonds are subject to mandatory redemption without premium commencing October 1, 2007 with respect to the term bonds maturing October 1, 2016 and October 1, 2017 with respect to the term bonds maturing October 1, 2026.

The reserve requirement for these bonds is covered by a surety bond provided by National Public Finance Guarantee Corp. (National). National's current ratings by Moody's Investors Services and Standard & Poor's are Baa2 and BBB, respectively.

The annual requirements to amortize outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 9,610,000 $ 863,004 $ 10,473,004 $
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, 2024, this reserve requirement was met.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-78-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
B) 2011 Tax Allocation Parity Bonds (Continued)
The annual requirements to amortize outstanding bond indebtedness as of June 30, 2024, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2025 675,000 $ 128,275 $ 803,275 $
2026 725,000 79,275 804,275
2027 770,000 26,950 796,950
Totals 2,170,000 $ 234,500 $ 2,404,500 $
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 bonds were paid in full in the year ending June 30, 2024.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-79-
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, 2024, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
2025 1,010,000 $ 15,781 $ 1,025,781 $
Totals 1,010,000 $ 15,781 $ 1,025,781 $
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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-80-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
E) 2017 Refunding Tax Allocation Bonds (Continued)
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, 2024, including interest, are as follows:

Year Ending
June 30, Principal Interest Total
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 7,730,000 $ 592,050 $ 8,322,050 $
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, 2024, including $4,198,453 of accrued interest, is $7,409,966.

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.

City of Signal Hill
Notes to Basic Financial Statements
June 30, 2024
-81-
NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
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, 2024, there was $1,185,753 due under this agreement, which is reported as a current liability.

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REQUIRED SUPPLEMENTARY INFORMATION
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City of Signal Hill
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2024
-82-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Property taxes 2,375,773 $ 2,375,773 $ 2,825,011 $ 449,238 $ Sales and use tax 25,085,362 25,085,362 28,053,616 2,968,254 Other taxes 1,836,107 1,836,107 2,087,625 251,518
Licenses and permits 779,374 779,374 999,988 220,614
Intergovernmental revenues 40,750 137,900 134,735 (3,165) Charges for services 1,249,464 1,249,464 2,119,075 869,611 Fines and forfeitures 220,000 220,000 134,471 (85,529)
Investment income (loss) 961,757 961,757 4,912,215 3,950,458 Other revenue 358,772 458,772 622,705 163,933
Total Revenues 32,907,359 33,104,509 41,889,441 8,784,932

EXPENDITURES
General government:

City Council 279,465 286,266 254,459 31,807
City Treasurer 8,234 8,234 5,435 2,799
City Clerk 396,784 406,784 271,874 134,910
Economic development 322,999 361,761 263,087 98,674
Executive administration 1,365,030 1,365,030 1,214,328 150,702 Communication/ public relations 254,640 254,640 182,054 72,586 Personnel services 556,931 613,126 502,384 110,742
Support services 2,290,819 2,790,819 2,567,287 223,532
Management information services 309,357 309,357 174,446 134,911 Fiscal services 1,118,745 1,171,399 1,026,015 145,384
Total General Government 6,903,004 7,567,416 6,461,369 1,106,047 Parks, recreation, and library services:

Library programs and services 815,897 828,397 814,450 13,947 Community support and services 1,274,800 1,596,061 1,309,084 286,977 Recreation 857,104 857,104 823,863 33,241
Total Parks, Recreation, and Library Services 2,947,801 3,281,562 2,947,397 334,165 Police:

Community outreach 70,118 70,118 44,164 25,954
Patrol services 6,500,551 6,505,551 5,936,119 569,432
Investigative services 1,598,248 1,598,248 1,301,218 297,030 Police support services 2,185,060 2,193,060 1,834,702 358,358 Communications 1,146,242 1,186,242 778,299 407,943
Records 527,659 533,659 368,760 164,899
Emergency and disaster services 154,882 162,382 80,534 81,848 Total Police 12,182,760 12,249,260 10,343,796 1,905,464 City of Signal Hill
Budgetary Comparison Schedule, (Continued)
General Fund
For the Year Ended June 30, 2024
-83-
Budgeted Amounts Variance with
Original Final Actual Final Budget
EXPENDITURES (Continued)
Community development:

Planning services 867,617 $ 873,617 $ 622,382 $ 251,235 $ Neighborhood enhancement 185,502 185,502 144,474 41,028 Building and safety 291,189 291,189 247,224 43,965
Oil field services 203,574 203,574 174,335 29,239
Total Community Development 1,547,882 1,553,882 1,188,415 365,467 Public works:

Engineering and project services 1,096,436 1,104,895 871,078 233,817 Building maintenance 1,270,972 1,270,972 1,250,726 20,246 Environmental programs 979,441 979,441 863,218 116,223
Park maintenance 1,371,573 1,483,808 1,180,304 303,504
Street maintenance operations 1,611,197 1,734,595 1,575,630 158,965 Total Public Works 6,329,619 6,573,711 5,740,956 832,755 Capital outlay 2,510,155 2,211,005 1,517,901 992,254
Debt service 2,037,609 2,037,609 2,186,380 (148,771)
Total Expenditures 34,159,680 35,773,595 30,386,214 5,387,381 Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,252,321) (2,669,086) 11,503,227 14,172,313

OTHER FINANCING SOURCES (USES)
Subscription acquisition 1,163,259 1,163,259 1,163,259 - Transfers in 597,865 597,865 242,795 (355,070)
Transfers out (2,934,840) (4,695,013) (1,816,865) 2,878,148 Total Other Financing Sources (Uses) (1,173,716) (2,933,889) (410,811) 2,523,078 Net Change in Fund Balance (2,426,037) (5,602,975) 11,092,416 16,695,391 Fund Balance, Beginning 64,579,735 64,579,735 64,579,735 - Fund Balance, Ending $ 58,976,760 62,153,698 $ 75,672,151 $ 16,695,391 $ City of Signal Hill
Budgetary Comparison Schedule
Housing Authority Special Revenue Fund
For the Year Ended June 30, 2024
-84-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Investment income 64,505 $ 64,505 $ 367,977 $ 303,472 $ Total Revenues 64,505 64,505 367,977 303,472

EXPENDITURES
Community development 7,000 7,000 4,520 2,480
Total Expenditures 7,000 7,000 4,520 2,480
Excess of Revenues Over
Expenditures 57,505 57,505 363,457 305,952

OTHER FINANCING SOURCES (USES)
Transfers in 375,777 375,777 375,777 -
Total Other Financing Sources (Uses) 375,777 375,777 375,777 - Net Change in Fund Balance 433,282 433,282 739,234 305,952 Fund Balance, Beginning 6,475,643 6,475,643 6,475,643 - Fund Balance, Ending $ 6,908,925 6,908,925 $ 7,214,877 $ 305,952 $ City of Signal Hill
Budgetary Comparison Schedule
Capital Grants Special Revenue Fund
For the Year Ended June 30, 2024
-85-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 2,300,000 $ 2,473,000 $ 214,071 $ (2,258,929) $ Total Revenues 2,300,000 2,473,000 214,071 (2,258,929)

OTHER FINANCING SOURCES (USES)
Transfers out (2,300,000) (2,473,000) (154,389) 2,318,611 Total Other Financing Sources (Uses) (2,300,000) (2,473,000) (154,389) 2,318,611 Net Change in Fund Balance - - 59,682 59,682
Fund Balance (Deficit), Beginning (201,682) (201,682) (201,682) - Fund Balance (Deficit), Ending $ (201,682) (201,682) $ (142,000) $ 59,682 $ City of Signal Hill
Notes to Required Supplementary Information
June 30, 2024
-86-
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.

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City of Signal Hill
Schedule of Proportionate Share of the Net Pension Liability - Miscellaneous Last Ten Fiscal Years
-87-
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 0.13408% 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 June 30, 2023 0.34817% 17,410,192 5,481,877 317.60% 72.12% 1,872,277 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.

City of Signal Hill
Schedule of Contributions - Miscellaneous
Last Ten Fiscal Years
-88-
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) - 5,481,877 29.67%
June 30, 2024 1,668,313 (1,668,313) - 5,673,241 29.41%
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.

City of Signal Hill
Schedule of Proportionate Share of the Net Pension Liability - Safety Last Ten Fiscal Years
-89-
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 June 30, 2023 0.29716% 22,212,532 3,296,621 673.80% 68.66% 1,938,887 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.

City of Signal Hill
Schedule of Contributions - Safety
Last Ten Fiscal Years
-90-
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%
June 30, 2024 2,093,686 (2,093,686) - 3,240,924 64.60%
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 five-year rampdown 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.

City of Signal Hill
Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years -91-
Fiscal Year End 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016Measurement Date 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016Total OPEB liability:

Service cost 312,255 $ 220,191 $ 293,500 $ 270,003 $ 78,454 $ 76,354 $ 88,947 $ 86,566 $ 84,249 $ Interest on total OPEB liability 723,750 701,238 819,177 814,641 693,993 689,655 724,953 719,524 732,333 Changes of assumptions (208,684) (333,930) (494,340) 350,078 3,078,833 - - - - Experience gains/(losses) 286,867.00 - (1,239,101) - 171,290 - (633,287) - - Investment gains/(losses) - - - - - 5,035 (5,035) - -
Benefit payments, including refunds
and the implied subsidy benefit payments (877,754) (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) 236,434 (1,419,194) 385,145 2,982,052 65,392 (553,489) 87,644 118,886 Total OPEB Liability, Beginning of Year 12,713,575 12,933,090 14,352,284 13,967,139 10,985,087 10,919,695 11,473,184 11,385,540 11,266,654Total OPEB Liability, End of Year (a) 12,713,575 12,950,009 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 952,755 880,746 872,192 1,184,870 1,251,150 705,652 729,067 718,446 847,696 Contributions - employees 73,997 69,558 70,110 65,478 336,878 - - - - Net investment income (loss) 539,305 337,516 (496,520) 642,090 186,488 135,298 125,181 154,005 (31,941) Administrative expenses (10,686) (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 (877,754) (807,014) (798,430) (1,049,577) (1,040,518) (705,652) (729,067) (718,446) (697,696) Other miscellaneous income (expense) (3,005.00) - - - - (2) - - - Net Change in Plan Fiduciary Net Position 674,612 469,913 (357,143) 824,292 718,800 123,092 113,270 142,898 114,241 Plan Fiduciary Net Position,- Beginning of Year 3,746,570 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 4,421,182 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) 8,528,827 $ 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 34.14% 29.47% 25.34% 25.32% 20.12% 19.03% 18.02% 16.16% 15.03% Covered - employee payroll 9,103,778 $ 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 93.68% 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.

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SUPPLEMENTARY INFORMATION
City of Signal Hill
Other Governmental Funds
Special Revenue Funds
-92-
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.

City of Signal Hill
Other Governmental Funds
Special Revenue Funds, (Continued)
-93-
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.

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.

Public Safety Grant Fund – Accounts for various grants to enhance public safety.

City of Signal Hill
Combining Balance Sheet
Other Governmental Funds
June 30, 2024
-94-
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A
ASSETS
Cash and investments - $ 752,000 $ - $ 1,620,412 $ 1,020,222 $ Receivables:

Interest receivable - - 600 - -
Due from other governments 23,533 - - 60,466 -
Loans - - 6,038 - -
Advances to other funds - 861,802 - - -
Restricted assets:

Cash and investments - - - - -
Total assets 23,533 $ 1,613,802 $ 6,638 $ 1,680,878 $ 1,020,222 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities
Accounts payable - $ - $ - $ - $ 17,882 $
Accrued liabilities - - - - 1,079
Unearned revenues - 861,802 - - -
Due to other funds - - 1 - -
Total liabilities - 861,802 1 - 18,961
Deferred inflows of resources:

Unavailable revenues - - 600 - -
Total deferred inflows of resources - - 600 - -

FUND BALANCES (DEFICIT)
Restricted for:

Public protection 23,533 - - - -
Development impact - 752,000 - -
Transportation - - - 1,680,878 1,001,261
Capital improvements - - 6,037 - -
Unassigned - - - - -
Total fund balances 23,533 752,000 6,037 1,680,878 1,001,261 Total liabilities, deferred inflows of
resources and fund balances 23,533 $ 1,613,802 $ 6,638 $ 1,680,878 $ 1,020,222 $ Special Revenue Funds
-95-
Air American Lighting
Pipeline Quality Water Traffic Transportation Rescue Plan and Removal Improvement Development Impact Proposition C Act Landscape $ 69,030 2,381,002 $ 1,047,200 $ 980,533 $ 596,632 $ - $ 127,652 $ - - - - - - -
3,846 - - - 20,035 - 787
- - - - - - -
- - 741,381 30,603 - - -
- - - - - - -
$ 72,876 2,381,002 $ 1,788,581 $ 1,011,136 $ 616,667 $ - $ 128,439 $ $ - - $ - $ - $ - $ - $ 51,333 $
- - - - - - 781
- - 741,381 30,603 - - -
- - - - - - -
- - 741,381 30,603 - - 52,114
- - - - - - -
- - - - - - -
- - - - - - -
- - 1,047,200 980,533 - - -
72,876 - - - 616,667 - -
- 2,381,002 - - - - 76,325
- - - - - - -
72,876 2,381,002 1,047,200 980,533 616,667 - 76,325
$ 72,876 2,381,002 $ 1,788,581 $ 1,011,136 $ 616,667 $ - $ 128,439 $ Special Revenue Funds
City of Signal Hill
Combining Balance Sheet, (Continued)
Other Governmental Funds
June 30, 2024
-96-
Supplemental Public
Law Safety State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M
ASSETS
Cash and investments 2,204 $ - $ 788,903 $ 169,475 $ 591,347 $ Receivables:

Interest receivable - - - - -
Due from other governments - 23,071 - - 17,086
Loans - - - - -
Advances to other funds - - - - -
Restricted assets:

Cash and investments - - - - -
Total assets 2,204 $ 23,071 $ 788,903 $ 169,475 $ 608,433 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts payable - $ - $ - $ - $ - $
Accrued liabilities 2,204 - - - -
Unearned revenues - - - - -
Due to other funds - 23,071 - - -
Total liabilities 2,204 23,071 - - -
DEFERRED INFLOWS OF RESOURCES:

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

FUND BALANCES (DEFICIT)
Restricted for:

Public protection - - - - -
Development impact - - 788,903 - -
Transportation - - - 169,475 608,433
Capital improvements - - - - -
Unassigned - - - - -
Total fund balances - - 788,903 169,475 608,433
Total liabilities, deferred inflows of
resources and fund balances 2,204 $ 23,071 $ 788,903 $ 169,475 $ 608,433 $ Special Revenue Funds
-97-
Prop 68 -
Transportation Civic Center TDA Article Parks and
Measure R RMRA (SB1) Measure W Phase II III Fund Recreation $ 615,183 95,407 $ 323,837 $ - $ - $ 55 $
- - - - - -
52,903 15,071 - - - -
- - - - - -
- - - - - -
- - - 9 - -
$ 668,086 110,478 $ 323,837 $ 9 $ - $ 55 $
$ - - $ - $ - $ - $ - $
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
668,086 110,478 - - - -
- - 323,837 9 - 55
- - - - - -
668,086 110,478 323,837 9 - 55
$ 668,086 110,478 $ 323,837 $ 9 $ - $ 55 $
Special Revenue Funds
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City of Signal Hill
Combining Balance Sheet, (Concluded)
Other Governmental Funds
June 30, 2024
-98-
Total
Other
Public Safety Governmental
Grant Fund Funds
ASSETS
Cash and investments - $ 11,181,094 $
Receivables:

Interest receivable - 600
Due from other governments 45,577 262,375
Loans - 6,038
Advances to other funds - 1,633,786
Restricted assets:

Cash and investments - 9
Total assets 45,577 $ 13,083,902 $

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

LIABILITIES
Accounts payable - $ 69,215 $
Accrued liabilities - 4,064
Unearned revenues - 1,633,786
Due to other funds 45,577 68,649
Total liabilities 45,577 1,775,714
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenues 45,577 46,177
Total deferred inflows of resources 45,577 46,177

FUND BALANCES (DEFICIT)
Restricted for:

Public protection - 23,533
Development impact - 3,568,636
Transportation - 4,928,154
Capital improvements - 2,787,265
Unassigned (45,577) (45,577)
Total fund balances (45,577) 11,262,011
Total liabilities, deferred inflows of
resources and fund balances 45,577 $ 13,083,902 $
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds
For the Year Ended June 30, 2024
-99-
Special Revenue Funds
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A

REVENUES
Other taxes - $ - $ - $ - $ - $
Intergovernmental revenues 23,533 - 17,139 325,888 307,510 Charges for services - 140,103 - - 36
Investment income - 52,922 - 72,167 48,112
Total revenues 23,533 193,025 17,139 398,055 355,658

EXPENDITURES
Current:

Police - - - - -
Community development - - 12,447 - 237,896
Public works - - - - -
Capital outlay - - - - -
Total expenditures - - 12,447 - 237,896
Excess of revenues over
(under) expenditures 23,533 193,025 4,692 398,055 117,762

OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - (406,633) (4,692) - -
Total other financing sources (uses) - (406,633) (4,692) - - Net change in fund balances 23,533 (213,608) - 398,055 117,762 Fund balance (deficit), beginning - 965,608 6,037 1,282,823 883,499 Fund balance (deficit), ending $ 752,000 23,533 $ 6,037 $ 1,680,878 $ 1,001,261 $ -100-
Special Revenue Funds
Air American Lighting
Pipeline Quality Water Traffic Transportation Rescue Plan and Removal Improvement Development Impact Proposition C Act Landscape $ - - $ - $ - $ - $ - $ 92,834 $
15,376 - - - 255,073 2,514,286 -
- - 782,091 158,407 - - -
4,811 120,277 24,056 48,111 33,677 - 4,811
20,187 120,277 806,147 206,518 288,750 2,514,286 97,645 - - - - - - -
- - - - - - -
- - - - - - 112,746
- - - - - - -
- - - - - - 112,746
20,187 120,277 806,147 206,518 288,750 2,514,286 (15,101) - - - - - - -
(70,855) (41,293) - (67,937) (202,475) (2,514,286) -
(70,855) (41,293) - (67,937) (202,475) (2,514,286) -
(50,668) 78,984 806,147 138,581 86,275 - (15,101)
123,544 2,302,018 241,053 841,952 530,392 - 91,426
$ 72,876 2,381,002 $ 1,047,200 $ 980,533 $ 616,667 $ - $ 76,325 $ City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds, (Continued)
For the Year Ended June 30, 2024
-101-
Special Revenue Funds
Supplemental Public
Law Safety State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M

REVENUES
Other taxes - $ - $ - $ - $ - $
Intergovernmental revenues 186,159 62,817 - - 215,956
Charges for services - - - - -
Investment income - - 38,489 14,433 38,489
Total revenues 186,159 62,817 38,489 14,433 254,445

EXPENDITURES
Current:

Police 186,159 62,817 - - -
Community development - - - - -
Public works - - - - -
Capital outlay - - - - -
Total expenditures 186,159 62,817 - - -
Excess of revenues over
(under) expenditures - - 38,489 14,433 254,445

OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - - (146,804) (322,906)
Total other financing sources (uses) - - - (146,804) (322,906) Net change in fund balances - - 38,489 (132,371) (68,461) Fund balance (deficit), beginning - - 750,414 301,846 676,894 Fund balance (deficit), ending $ - - $ 788,903 $ 169,475 $ 608,433 $ -102-
Prop 68 -
Transportation Civic Center TDA Article Parks and
Measure R RMRA (SB1) Measure W Phase II III Fund Recreation $ - - $ 281,599 $ - $ - $ - $
303,557 191,245 - - 10,945 185,055
- - - - - -
43,299 14,433 24,056 - - -
346,856 205,678 305,655 - 10,945 185,055
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
346,856 205,678 305,655 - 10,945 185,055
- - 14,095 - - -
(391,253) (338,625) (305,984) - (10,945) -
(391,253) (338,625) (291,889) - (10,945) -
(44,397) (132,947) 13,766 - - 185,055
712,483 243,425 310,071 9 - (185,000)
$ 668,086 110,478 $ 323,837 $ 9 $ - $ 55 $
Special Revenue Funds
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Other Governmental Funds, (Concluded)
For the Year Ended June 30, 2024
-103-
Total
Other
Public Safety Governmental
Grant Fund Funds

REVENUES
Other taxes - $ 374,433 $
Intergovernmental revenues - 4,614,539
Charges for services - 1,080,637
Investment income - 582,143
Total revenues - 6,651,752

EXPENDITURES
Current:

Police - 248,976
Community development - 250,343
Public works - 112,746
Capital outlay 45,577 45,577
Total expenditures 45,577 657,642
Excess of revenues over
(under) expenditures (45,577) 5,994,110

OTHER FINANCING SOURCES (USES)
Transfers in - 14,095
Transfers out - (4,824,688)
Total other financing sources (uses) - (4,810,593)
Net change in fund balances (45,577) 1,183,517
Fund balance (deficit), beginning - 10,078,494
Fund balance (deficit), ending $ 11,262,011 (45,577) $
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, 2024
-104-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for services 350,305 $ 350,305 $ 140,103 $ (210,202) $ Investment income 9,968 9,968 52,922 42,954
Total Revenues 360,273 360,273 193,025 (167,248)

OTHER FINANCING SOURCES (USES)
Transfers out (955,000) (955,000) (406,633) 548,367
Total Other Financing Sources (Uses) (955,000) (955,000) (406,633) 548,367 Net Change in Fund Balance (594,727) (594,727) (213,608) 381,119 Fund Balance, Beginning 965,608 965,608 965,608 -
Fund Balance, Ending $ 370,881 370,881 $ 752,000 $ 381,119 $ 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, 2024
-105-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 86,190 $ 86,190 $ 17,139 $ (69,051) $ Total Revenues 86,190 86,190 17,139 (69,051)

EXPENDITURES
Current:

Community development 17,238 17,238 12,447 4,791
Total Expenditures 17,238 17,238 12,447 4,791
Excess of Revenues Over (Under)
Expenditures 68,952 68,952 4,692 (64,260)

OTHER FINANCING SOURCES (USES)
Transfers out (68,952) (68,952) (4,692) 64,260
Total Other Financing Sources (Uses) (68,952) (68,952) (4,692) 64,260 Net Change in Fund Balance - - - -
Fund Balance, Beginning 6,037 6,037 6,037 -
Fund Balance, Ending $ 6,037 6,037 $ 6,037 $ - $
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, 2024
-106-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 304,957 $ 304,957 $ 325,888 $ 20,931 $ Investment income 9,022 9,022 72,167 63,145
Total Revenues 313,979 313,979 398,055 84,076

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 63,979 63,979 398,055 334,076 Fund Balance, Beginning 1,282,823 1,282,823 1,282,823 - Fund Balance, Ending $ 1,346,802 1,346,802 $ 1,680,878 $ 334,076 $ 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, 2024
-107-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 335,166 $ 335,166 $ 307,510 $ (27,656) $ Charges for services - - 36 36
Investment income 5,420 5,420 48,112 42,692
Total Revenues 340,586 340,586 355,658 15,072

EXPENDITURES
Current:

Community development 270,067 270,067 237,896 32,171
Total Expenditures 270,067 270,067 237,896 32,171
Net Change in Fund Balance 70,519 70,519 117,762 47,243 Fund Balance, Beginning 883,499 883,499 883,499 -
Fund Balance, Ending $ 954,018 954,018 $ 1,001,261 $ 47,243 $ 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, 2024
-108-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Investment income 17,056 $ 17,056 $ 120,277 $ 103,221 $ Total Revenues 17,056 17,056 120,277 103,221

OTHER FINANCING SOURCES (USES)
Transfers out (92,452) (92,452) (41,293) 51,159
Net Change in Fund Balance (75,396) (75,396) 78,984 154,380 Fund Balance, Beginning 2,302,018 2,302,018 2,302,018 - Fund Balance, Ending $ 2,226,622 2,226,622 $ 2,381,002 $ 154,380 $ 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, 2024
-109-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 15,000 $ 15,000 $ 15,376 $ 376 $ Investment income 917 917 4,811 3,894
Total Revenues 15,917 15,917 20,187 4,270

OTHER FINANCING SOURCES (USES)
Transfers out (84,453) (84,453) (70,855) 13,598
Total Other Financing Sources (Uses) (84,453) (84,453) (70,855) 13,598 Net Change in Fund Balance (68,536) (68,536) (50,668) 17,868 Fund Balance, Beginning 123,544 123,544 123,544 -
Fund Balance, Ending $ 55,008 55,008 $ 72,876 $ 17,868 $ 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, 2024
-110-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for services 1,726,929 $ 1,726,929 $ 782,091 $ (944,838) $ Investment income 12,026 12,026 24,056 12,030
Total Revenues 1,738,955 1,738,955 806,147 (932,808)

OTHER FINANCING SOURCES (USES)
Transfers out (238,000) (238,000) - 238,000
Net Change in Fund Balance 1,500,955 1,500,955 806,147 (694,808) Fund Balance, Beginning 241,053 241,053 241,053 -
Fund Balance, Ending $ 1,742,008 1,742,008 $ 1,047,200 $ (694,808) $ 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, 2024
-111-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Charges for services 350,012 $ 350,012 $ 158,407 $ (191,605) $ Investment income 6,671 6,671 48,111 41,440
Total Revenues 356,683 356,683 206,518 (150,165)

OTHER FINANCING SOURCES (USES)
Transfers out (518,445) (518,445) (67,937) 450,508
Net Change in Fund Balance (161,762) (161,762) 138,581 300,343 Fund Balance, Beginning 841,952 841,952 841,952 -
Fund Balance, Ending $ 680,190 680,190 $ 980,533 $ 300,343 $ 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, 2024
-112-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 278,011 $ 278,011 $ 255,073 $ (22,938) $ Investment income 1,638 1,638 33,677 32,039
Total Revenues 279,649 279,649 288,750 9,101

EXPENDITURES
Public works 5,000 5,000 - 5,000
Total Expenditures 5,000 5,000 - 5,000
Excess of Revenues Over (Under)
Expenditures 274,649 274,649 288,750 14,101

OTHER FINANCING SOURCES (USES)
Transfers out (200,000) (200,000) (202,475) (2,475)
Total Other Financing Sources (Uses) (200,000) (200,000) (202,475) (2,475) Net Change in Fund Balance 74,649 74,649 86,275 11,626
Fund Balance, Beginning 530,392 530,392 530,392 -
Fund Balance, Ending $ 605,041 605,041 $ 616,667 $ 11,626 $ 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, 2024
-113-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 528,412 $ 528,412 $ 2,514,286 $ 1,985,874 $ Total Revenues 528,412 528,412 2,514,286 1,985,874

OTHER FINANCING SOURCES (USES)
Transfers out (528,412) (528,412) (2,514,286) (1,985,874) Net Change in Fund Balance - - - -
Fund Balance, Beginning - - - -
Fund Balance, Ending $ - - $ - $ - $
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, 2024
-114-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Other taxes 93,150 $ 93,150 $ 92,834 $ (316) $
Investment income 311 311 4,811 4,500
Total Revenues 93,461 93,461 97,645 4,184

EXPENDITURES
Current:

Public works 96,710 127,568 112,746 14,822
Total Expenditures 96,710 127,568 112,746 14,822
Excess of Revenues Over (Under) (3,249) (34,107) (15,101) 19,006 Expenditures
Fund Balance, Beginning 91,426 91,426 91,426 -
Fund Balance, Ending $ 57,319 88,177 $ 76,325 $ 19,006 $ 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, 2024
-115-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 166,348 $ 166,348 $ 186,159 $ 19,811 $ Total Revenues 166,348 166,348 186,159 19,811

EXPENDITURES
Current:

Police 166,348 166,348 186,159 (19,811)
Total Expenditures 166,348 166,348 186,159 (19,811)
Excess of Revenues Over (Under) - - - -
Expenditures
Fund Balance, Beginning - - - -
Fund Balance, Ending $ - - $ - $ - $
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, 2024
-116-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 60,000 $ 90,000 $ 62,817 $ (27,183) $ Total Revenues 60,000 90,000 62,817 (27,183)

EXPENDITURES
Current:

Police 60,000 90,000 62,817 27,183
Total Expenditures 60,000 90,000 62,817 27,183
Net Change in Fund Balance - - - -
Fund Balance, Beginning - - - -
Fund Balance, Ending $ - - $ - $ - $
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, 2024
-117-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Investment income 5,760 $ 5,760 $ 38,489 $ 32,729 $
Total Revenues 5,760 5,760 38,489 32,729
Fund Balance, Beginning 750,414 750,414 750,414 -
Fund Balance, Ending $ 756,174 756,174 $ 788,903 $ 32,729 $ 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, 2024
-118-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 34,680 $ 34,680 $ - $ (34,680) $ Investment income 398 398 14,433 14,035
Total Revenues 35,078 35,078 14,433 (20,645)

OTHER FINANCING SOURCES (USES)
Transfers out (87,766) (87,766) (146,804) (59,038)
Net Change in Fund Balance (52,688) (52,688) (132,371) (79,683) Fund Balance, Beginning 301,846 301,846 301,846 -
Fund Balance, Ending $ 249,158 249,158 $ 169,475 $ (79,683) $ 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, 2024
-119-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 236,310 $ 236,310 $ 215,956 $ (20,354) $ Investment income 6 6 38,489 38,483
Total Revenues 236,316 236,316 254,445 18,129

OTHER FINANCING SOURCES (USES)
Transfers out (462,470) (462,470) (322,906) 139,564
Net Change in Fund Balance (226,154) (226,154) (68,461) 157,693 Fund Balance, Beginning 676,894 676,894 676,894 -
Fund Balance, Ending $ 450,740 450,740 $ 608,433 $ 157,693 $ 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, 2024
-120-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 208,508 $ 208,508 $ 191,245 $ (17,263) $ Investment income 2,525 2,525 14,433 11,908
Total Revenues 211,033 211,033 205,678 (5,355)

OTHER FINANCING SOURCES (USES)
Transfers out (336,234) (336,234) (338,625) (2,391)
Net Change in Fund Balance (125,201) (125,201) (132,947) (7,746) Fund Balance, Beginning 243,425 243,425 243,425 -
Fund Balance, Ending $ 118,224 118,224 $ 110,478 $ (7,746) $ 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, 2024
-121-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 255,119 $ 255,119 $ 303,557 $ 48,438 $ Investment income 4,934 4,934 43,299 38,365
Total Revenues 260,053 260,053 346,856 86,803

OTHER FINANCING SOURCES (USES)
Transfers out (540,186) (540,186) (391,253) 148,933
Net Change in Fund Balance (280,133) (280,133) (44,397) 235,736 Fund Balance, Beginning 712,483 712,483 712,483 -
Fund Balance, Ending $ 432,350 432,350 $ 668,086 $ 235,736 $ 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, 2024
-122-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Other taxes 280,000 $ 280,000 $ 281,599 $ 1,599 $
Investment income - - 24,056 24,056
Total Revenues 280,000 280,000 305,655 25,655

OTHER FINANCING SOURCES (USES)
Transfers in - - 14,095 14,095
Transfers out (365,000) (365,000) (305,984) 59,016
Total Other Financing Sources (Uses) (365,000) (365,000) (291,889) 73,111 Net Change in Fund Balance (85,000) (85,000) 13,766 98,766 Fund Balance, Beginning 310,071 310,071 310,071 -
Fund Balance, Ending $ 225,071 225,071 $ 323,837 $ 98,766 $ 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, 2024
-123-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues 10,945 $ 10,945 $ 10,945 $ - $ Investment income 132 132 - (132)
Total Revenues 11,077 11,077 10,945 (132)

OTHER FINANCING SOURCES (USES)
Transfers out (10,945) (10,945) (10,945) -
Net Change in Fund Balance 132 132 - (132)
Fund Balance, Beginning - - - -
Fund Balance (Deficit), Ending $ 132 132 $ - $ (132) $
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, 2024
-124-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues - $ - $ 185,055 $ 185,055 $
Total Revenues - - 185,055 185,055

OTHER FINANCING SOURCES (USES)
Transfers out - - - -
Net Change in Fund Balance - - 185,055 185,055
Fund Balance (Deficit), Beginning (185,000) (185,000) (185,000) - Fund Balance, Ending $ (185,000) (185,000) $ 55 $ 185,055 $ City of Signal Hill
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual
Public Safety Grant
For the Year Ended June 30, 2024
-125-
Budgeted Amounts Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental revenues - $ 45,577 $ - $ (45,577) $
Total Revenues - 45,577 - (45,577)

EXPENDITURES
Capital Outlay 45,577 - 45,577 -
Net Change in Fund Balance - - (45,577) (45,577)
Fund Balance (Deficit), Beginning - - - -
Fund Balance, Ending $ - - $ (45,577) $ (45,577) $

STATISTICAL SECTION
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City of Signal Hill
Description of Statistical Section Contents
-126-
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 127-134
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 135-138
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

Debt Capacity 139-142
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 143-144
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 145-147
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.

City of Signal Hill
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-127-
2015 2016 2017 2018
Governmental Activities:

Net investment in capital assets 48,407 $ 67,914 $ 73,428 $ 83,153 $ Restricted 17,086 23,481 19,781 19,552
Unrestricted 13,095 7,115 13,113 11,950
Total governmental activities net position 78,588 $ 98,510 $ 106,322 $ 114,655 $ Business-type Activities:

Net investment in capital assets 16,003 $ 18,952 $ 23,636 $ 23,536 $ Unrestricted 3,110 1,958 (2,316) (2,572)
Total business-type activities net position 19,113 $ 20,910 $ 21,320 $ 20,964 $ Primary Government:

Net investment in capital assets 64,410 $ 86,866 $ 97,064 $ 106,689 $ Restricted 17,086 23,481 19,781 19,552
Unrestricted 16,205 9,073 10,797 9,378
Total primary government net position 97,701 $ 119,420 $ 127,642 $ 135,619 $ Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-128-
2019 2020 2021 2022 2023 2024
$ 77,654 104,567 $ 76,772 $ 78,459 $ 82,815 $ 84,083 $
16,784 18,360 17,427 17,132 15,748 18,899
14,553 3,243 20,414 28,649 42,110 51,516
$ 108,991 126,170 $ 114,613 $ 124,240 $ 140,673 $ 154,498 $ $ 22,655 23,331 $ 22,684 $ 23,727 $ 24,580 $ 27,074 $
(2,342) (2,751) (2,083) (2,034) (961) 1,124
$ 20,313 20,580 $ 20,601 $ 21,693 $ 23,619 $ 28,198 $
$ 100,309 127,898 $ 99,456 $ 102,186 $ 107,395 $ 111,157 $ 16,784 18,360 17,427 17,132 15,748 18,899
12,211 492 18,331 26,615 41,149 52,640
$ 129,304 146,750 $ 135,214 $ 145,933 $ 164,292 $ 182,696 $ Fiscal Year Ending June 30,
City of Signal Hill
Changes in Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-129-
2015 2016 2017 2018
Expenses
Governmental activities:

General government 4,149 $ 3,843 $ 4,633 $ 5,146 $
Parks, recreation, and library services 1,251 1,505 1,362 1,596 Police 9,350 8,254 9,576 10,564
Community development 942 868 858 963
Public works 4,256 4,369 4,605 4,927
Unallocated infrastructure depreciation 551 551 645 639 Interest on long-term debt - - - 93
Total governmental activities expenses 19,516 20,373 21,679 23,928 Business-type activities - water 4,424 4,145 5,312 4,846 Total primary government expenses 23,940 $ 24,518 $ 26,991 $ 28,774 $ Program Revenues
Governmental activities:

Charges for services:

General government 201 $ 175 $ 178 $ 216 $
Parks, recreation, and library services 192 212 191 203 Police 270 282 288 250
Community development 537 584 514 567
Public works 422 437 461 790
Operating grants 1,339 9,313 850 1,199
Capital grants and contributions 2,433 2,020 9,188 4,586 Total governmental activities program revenues 5,421 12,996 11,670 7,811 Business-type activities:

Charges for services 3,760 3,400 3,785 4,420
Capital grants and contributions - 999 1,927 42
Total business-type activities program revenues 3,760 4,399 5,712 4,462 Total primary government program revenues 9,181 $ 17,395 $ 17,382 $ 12,273 $ Net (Expense)/ Revenue
Governmental activities (14,095) $ (7,377) (10,009) $ (16,117) $ Business-type activities (664) 254 400 (384)
Total primary government net expenses (14,759) $ (7,123) $ (9,609) $ (16,501) $ General Revenues and Other Changes
in Net Position
Governmental activities:

Taxes
Property $ 1,916 1,797 $ 1,802 $ 2,248 $
Franchise 549 773 735 487
Other 1,459 1,462 874 926
Intergovernmental - sales and use tax 11,567 14,588 14,597 14,484 Investment income 787 955 442 961
Unrestricted grants and contributions 2,048 46 311 456
Gain (loss) on disposition of assets - - 14 -
Transfers (1,679) (426) - -
Extraordinary item - - - 4,369
Total governmental activities 18,008 17,834 18,775 23,931 Business-type activities:

Investment income (loss) 51 21 10 28
Transfers 1,679 426 - -
Total business-type activities 477 1,700 10 28
Total primary government 18,485 $ 19,534 $ 18,785 $ 23,959 $ Change in net position
Governmental activities 3,913 $ 10,457 $ 8,766 $ 7,814 $ Business-type activities (187) 1,954 410 (356)
Total primary government 3,726 $ 12,411 $ 9,176 $ 7,458 $ Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-130-
2019 2020 2021 2022 2023 2024
$ 5,787 4,074 $ 6,045 $ 7,093 $ 6,221 $ 7,318 $
1,757 1,991 1,996 2,619 2,535 3,711
11,817 11,504 11,009 11,054 9,014 12,989
989 1,434 1,270 1,359 1,257 1,470
4,787 4,433 4,859 4,633 4,750 6,326
394 401 394 422 422 446
219 221 217 492 494 511
25,750 24,058 25,790 27,672 24,693 32,771
4,665 5,056 5,263 5,747 4,553 5,035
$ 30,415 29,114 $ 31,053 $ 33,419 $ 29,246 $ 37,806 $
$ 402 331 $ 90 $ 79 $ 69 $ 70 $
118 173 85 135 173 175
255 252 169 179 193 177
418 430 553 601 637 829
824 703 1,006 1,215 1,211 1,708
1,524 2,349 1,819 2,254 2,030 5,053
730 10,219 938 2,828 2,090 1,772
4,271 14,457 4,660 7,291 6,403 9,784
4,574 4,335 5,548 6,208 6,280 6,767
114 239 - - - -
4,688 4,574 5,548 6,208 6,280 6,767
$ 8,959 19,031 $ 10,208 $ 13,499 $ 12,683 $ 16,551 $
$ (21,479) (9,601) $ (21,130) $ (20,381) $ (18,290) $ (22,987) $ 23 (482) 285 461 1,727 1,731
$ (21,456) (10,083) $ (20,845) $ (19,920) $ (16,563) $ (21,256) $ $ 2,330 2,189 $ 2,801 $ 2,619 $ 2,972 $ 3,107 $
887 901 982 975 1,073 1,126
836 1,053 920 1,074 1,369 1,271
16,834 15,789 20,268 24,786 26,462 28,053
1,977 1,788 1,346 707 2,208 5,167
183 94 435 553 789 623
- - - - - -
354 (30) - (707) (148) (2,535)
- - - - - -
23,401 21,784 26,752 30,007 34,725 36,812
64 68 3 (76) 51 313
(354) 30 - 707 148 2,535
(290) 98 3 631 199 2,848
$ 23,111 21,882 $ 26,755 $ 30,638 $ 34,924 $ 39,660 $
$ 1,922 12,183 $ 5,622 $ 9,626 $ 16,434 $ 13,825 $
(267) (384) 288 1,092 1,926 4,580
$ 1,655 11,799 $ 5,910 $ 10,718 $ 18,360 $ 18,405 $
Fiscal Year Ending June 30,
City of Signal Hill
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-131-
2015 2016 2017 2018
General Fund
Nonspendable 7,768 $ 8,430 $ 12,126 $ 14,722 $
Restricted 13 13 13 -
Committed 20,588 14,160 20,630 16,553
Unassigned 1,278 12,227 2,226 9,159
Total General Fund 29,647 34,830 34,995 40,434
All Other Governmental Funds
Nonspendable 4,414 4,129 347 -
Restricted 12,574 19,360 19,762 28,136
Unassigned (3,193) (2,555) (891) (2,294)
Total All other Governmental Funds 13,795 20,934 19,218 25,842 Total All Governmental Funds 43,442 $ 55,764 $ 54,213 $ 66,276 $ Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-132-
2019 2020 2021 2022 2023 2024
$ 11,892 11,955 $ 2,717 $ 3,132 $ 10,461 $ 8,916 $
- - - - - -
16,209 15,330 24,953 30,349 26,948 35,119
14,151 10,586 20,356 23,102 27,171 31,637
42,252 37,871 48,026 56,583 64,580 75,672
- - - - - -
16,783 18,359 17,427 17,114 17,139 18,922
- (4,259) (37) (1,760) (387) (187)
16,783 14,100 17,390 15,354 16,752 18,735
$ 59,035 51,971 $ 65,416 $ 71,937 $ 81,332 $ 94,407 $
Fiscal Year Ending June 30,
City of Signal Hill
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Amounts Expressed in Thousands)
-133-
2015 2016 2017 2018
Revenues
Taxes 15,811 $ 21,394 $ 18,701 $ 19,444 $
Licenses and permits 411 370 374 429
Intergovernmental 1,367 3,591 8,809 5,440
Charges for services 739 762 759 1,066
Fines and forfeitures 301 326 289 312
Investment income 826 778 830 1,177
Other 2,786 652 411 417
Total Revenues 22,241 27,873 30,173 28,285
Expenditures
General government 4,476 3,940 4,879 4,409
Parks, recreation, and library services 1,257 1,472 1,576 1,592 Police 8,172 9,270 9,152 9,412
Community development 952 962 854 948
Public works 3,627 3,883 4,046 4,130
Capital outlay 2,485 3,259 7,726 11,831
Debt Service:

Principal retirement - 14 - 16
Interest - 3 - 84
Other debt service - - 17 170
Total Expenditures 20,969 22,803 28,250 32,592
Excess of revenues over/(under) expenditures 1,272 5,070 1,923 (4,307) Other Financing Sources/(Uses)
Transfers in 1,694 1,236 1,687 5,383
Transfers out (2,120) (2,915) (1,687) (5,383)
Other 76 7,578 - 8,986
Total other financing sources (350) 5,899 - 8,986
Extraordinary Item - - - 4,369
Net change in fund balances 922 $ 10,969 $ 1,923 $ 9,048 $ Capitalized capital outlay 1,788 $ 2,985 $ 7,016 $ 11,075 $ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.1% 1.3% Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-134-
2019 2020 2021 2022 2023 2024
$ 20,920 19,800 $ 24,805 $ 29,240 $ 31,685 $ 33,341 $
635 580 679 763 809 1,000
6,128 9,202 2,508 3,028 5,247 4,963
1,076 1,895 1,390 2,116 1,591 3,200
328 423 175 144 149 134
1,995 1,984 1,111 224 2,218 5,862
175 78 435 512 789 623
31,257 33,962 31,103 36,027 42,488 49,123
5,291 4,715 5,741 5,591 6,061 6,461
1,574 1,727 1,378 2,019 2,285 2,947
10,056 9,514 9,346 10,245 10,320 10,593
1,021 1,431 1,273 1,365 1,331 1,443
4,254 4,141 4,470 4,614 5,249 5,854
2,075 22,642 2,162 4,114 8,255 5,121
109 100 110 335 1,152 1,618
242 244 240 516 486 568
- 16 - - - -
24,622 44,530 24,720 28,799 35,139 34,605
6,635 (10,568) 6,383 7,228 7,349 14,518
8,391 22,854 2,768 4,933 4,862 4,190
(8,391) (23,044) (2,768) (5,640) (5,010) (6,796)
- - - - 2,195.00 1,163
- (190) - (707) 2,047 (1,443)
- - - - - -
$ 6,635 (10,758) $ 6,383 $ 6,521 $ 9,396 $ 13,075 $
$ 1,851 22,386 $ 1,670 $ 4,060 $ 7,599 $ 4,830 $

1.6% 1.5% 1.5% 3.4% 5.9% 7.3%
Fiscal Year Ending June 30,
City of Signal Hill
Assessed Value of Taxable Property
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
-135-
Fiscal Year Taxable Total
Ended Unsecured Assessed Direct
June 30 Residential Commercial Industrial Vacant Others** Property Value (Note) Tax Rate 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 63,059 254,321 142,358 2,583,056 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 63,714 240,712 139,651 2,841,195 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 2024 1,725,505 492,066 538,241 94,865 270,538 166,006 3,287,221 0.06658 ** Includes institutional, miscellaneous, recreational, SBE Nonunitary, cross reference, and unknown property.

Note:

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

City of Signal Hill
Direct and Overlapping Property Tax Rates
(Rates Per $100 of Taxable Value)
Last Ten Fiscal Years
-136-
Agency 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 0.04595 0.03825 0.06736 0.06760 0.06319 0.06309 0.06327 0.06035 0.05970 0.05789 Long Beach Unified School District 0.08764 0.08324 0.08539 0.14732 0.14053 0.14334 0.13363 0.12724 0.12591 0.18288 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 1.13709 1.12500 1.15625 1.21842 1.20722 1.20993 1.20040 1.19109 1.18911 1.24427 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) 0.06542 0.06560 0.06570 0.06569 0.06625 0.06634 0.06641 0.06641 0.06652 0.06658 Notes:
(1)
(2)
(3)
(4)
(5)
Source: HdL Coren & Cone
Fiscal Year Ending June 30,
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.

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.

City of Signal Hill
Principal Property Tax Payers
Current Year and Nine Years Ago
(Amounts Expressed in Thousands)
-137-
FY 2023-24
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 133,204 $ 4.05% 175,472 $ 7.69% Long Beach Acquisition Corporation 48,777 1.48% 15,588 0.68% Gaines Family Trust 45,555 1.39% - 0.00%
LBSH Parcel 1 LLC 32,018 0.97% 27,174 1.19%
G and I XI Sequoia 30,905 0.94% - 0.00%
Towne Center West I LLC ET AL 29,290 0.89% 24,859 1.09% Costco Wholesale Corporation 26,240 0.80% 21,079 0.92%
Bcore Retail Towne Center LLC 25,228 0.77% - 0.00%
Veyer LLC 23,840 0.73% - 0.00%
2550 Orange Ave Development LLC 21,344 0.65% - 0.00%
Home Depot USA INC - 0.00% 18,052 0.79%
Tesoro Logistics Operations LLC - 0.00% 54,596 2.39%
PL Signal Hill LP - 0.00% 36,365 1.59%
Signal Hill Town Center LLC - 0.00% 16,254 0.71%
VNO Tru Cherry Avenue LP - 0.00% 14,517 0.64%
Note: 416,401 $ 12.67% 403,957 $ 17.70%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency and its Successor Agency
Source: HdL Coren & Cone
FY 2014-15
City of Signal Hill
Property Tax Levies and Collections
Last Ten Fiscal Years
-138-
Note (1)
Collected within the Collections
Fiscal Year Taxes Levied Fiscal Year of Levy in Total Collections to Date Ended for the Percent Subsequent Percent
June 30, Fiscal Year (2) Amount (2) of Levy Years Amount of Levy 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
2024 22,497,195 14,292,624 63.53% N/A N/A N/A
Notes:

Source: County of Los Angeles Auditor-Controller
(1) Los Angeles County does not provide detail of prior year collections. Therefore, the information about subsequent collections is not available.
(2) Taxes Levied and Collected includes amounts applicable to the City and to the Signal Hill Redevelopment Agency and its Successor Agency and the incremental revenue is presented above for comparative purposes City of Signal Hill
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts Expressed in Thousands, Except per Capita)
-139-
Lease Water Total Percent of Percent of
Fiscal Revenue Leases & Revenue Loans/ Primary Assessed Per Personal Year Bonds Subscriptions Bonds Subscriptions Government Valuation Capita Income 2015 - $ 65 $ 6,044 $ - $ 6,109 $ 0.268% 523 $ 17.88
2016 - 51 5,650 - 5,701 0.237% 491.08 17.10
2017 - 36 4,741 - 4,777 0.197% 406.59 12.94
2018 8,974 21 4,269 - 13,264 0.530% 1,124.54 31.74
2019 8,851 4 3,787 - 12,642 0.489% 1,079.41 29.18
2020 8,723 - 3,290 - 12,013 0.440% 1,034.10 25.90
2021 8,590 - 2,778 - 11,368 0.400% 980.24 24.10
2022 8,447 13,536 2,251 1,500 25,734 0.905% 2,251.22 55.47 2023 7,774 15,229 1,709 1,557 26,212 0.851% 2,289.65 48.05 2024 7,091 15,434 1,147 1,507 25,032 0.761% N/A N/A
N/A Information is not yet available.

Source: City of Signal Hill, Finance Department
Governmental Activities Business-type Activities
City of Signal Hill
Direct and Overlapping Governmental Activity Debt
As of June 30, 2024
-140-
2023-24 Assessed Valuations: $3,287,221,423 Percent Net Total Debt Applicable Bonded
6/30/2024 To City Debt

DIRECT AND OVERLAPPING GENERAL FUND DEBT
260.01 Water Bonds $ 0.000% - - $
LOS ANGELES COUNTY GENERAL FUND OBLIGATIONS 2,479,229,730 $ 0.164% 4,065,937 $ LOS ANGELES COUNTY SUPERINTENDENT OF SCHOOLS AND CERTIFICATES OF PARTICIPATION 0.164% 4,686 2,857,300 CITY OF SIGNAL HILL GENERAL FUND OBLIGATIONS 25,178,497 100.000% 25,178,497 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 29,249,120

OVERLAPPING TAX AND ASSESSMENT DEBT
METROPOLITAN WATER DISTRICT $ 0.085% 15,479 18,210,000
LONG BEACH COMMUNITY COLLEGE DISTRICT (debt summary) 555,519,244 3.815% 21,193,059 LONG BEACH UNIFIED SCHOOL DISTRICT(debt summary) 1,718,791,399 3.815% 65,571,892 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 86,780,430
OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 100.000% 20,520,000 20,520,000 $ TOTAL DIRECT DEBT 25,178,497
TOTAL OVERLAPPING DEBT 111,371,053
COMBINED TOTAL DEBT $ (2) 118,266,053
Ratios to 2023-24 Assessed Valuation:

Direct Debt ($6,895,000) 0.21%
Total Direct and Overlapping Tax and Assessment Debt 2.64% Total Debt 3.60%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,072,737,049) Overlapping Tax Increment Debt 0.99%
Source: California Municipal Statistics, Inc
(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.

City of Signal Hill
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts in Thousands)
-141-
Legal Debt Margin Calculation for the Current Year
Assessed value $3,287,221,423
Debt limit (15% of assessed value) 493,083,213
Debt applicable to limit -
Legal debt margin - Current Year $ 493,083,213
Debt as
Fiscal Percentage
Year of Limit
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 364,097,801 - 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%
2024 493,083,213 - 493,083,213 0.00%
Source: City of Signal Hill, Finance Department
Legal
Debt
Limit to Limit Margin
Debt
Debt
Applicable
City of Signal Hill
Pledged-Revenue Bond Coverage
Last Ten Fiscal Years
(Amounts in Thousands)
-142-
Fiscal Pledged Tax
Year Revenues Principal Interest Total Coverage
2015 - $ - $ - $ - $ - $
2016 - - - - -
2017 - - - - -
2018 - - - - -
2019 - - - - -
2020 - - - - -
2021 - - - - -
2022 - - - - -
2023 - - - - -
2024 - - - - -
(1) Debt service amounts are presented on a bond year basis.

Source: City of Signal Hill, Finance Department
Debt Service (1)
City of Signal Hill
Demographic and Economic Statistics
Last Ten Calendar Years
-143-
Personal Per Capita
Calendar City Income Personal Unemployment
Year Population (in thousands) Income Rate
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 11,448 545,528 47,652 3.1%
2024 N/A N/A N/A N/A
N/A - Information is not yet available
Sources: City Population - State Department of Finance
Unemployment Rate - Bureau of Labor Statistics
City of Signal Hill
Principal Employers
Current Year and Nine Years Ago
-144-
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Home Depot * 433 1 4.85% 375 2 4.62%
Costco Wholesale 366 2 4.10% 312 3 3.84%
Office Depot - Veyer, LLC 256 3 2.87% 428 1 5.27%
Target 235 4 2.63% 218 4 2.68%
Glenn E Thomas Company 132 5 1.48% 114 9 1.40%
Federal Express Corporation 126 6 1.41%
American University of Health Sciences 124 7 1.39%
In-N-Out Burgers 121 8 1.36%
Long Beach BMW 115 9 1.29% 100 10
Boulevard Cadillac GMC 113 10 1.27%
Mercedes-Benz of Long Beach 127 6 1.56%
Accountable Healthcare I.P.A. 136 5 1.67%
Platt Security Inc 122 7 1.50%
Hof's Hut Restaurants 114 8 1.40%
2,021 22.66% 2,046 23.96%
Note:
* - Reported Home Depot's two locations in one total
Source: City of Signal Hill Business Licenses, employee counts are self-reported 2023-2024 2014-15
City of Signal Hill
Full-Time Equivalent City Government Employees by Department Last Ten Fiscal Years
-145-
Department 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Administration 4.73 4.73 5.00 5.75 5.80 5.80 5.80 5.80 7.50 8.50 Finance 5.98 5.98 6.80 6.75 5.80 5.80 5.80 5.80 5.80 7.80

19.53 19.53 18.60 18.60 18.60 18.50 8.80 21.60 22.50 25.55 Police 52.89 52.89 53.00 53.00 53.00 51.10 51.10 52.70 52.70 53.20 Community Development 7.00 7.00 4.00 4.00 4.00 4.00 4.00 4.20 5.70 5.70 Public Works 30.04 30.04 28.00 28.00 28.00 28.00 27.00 28.00 30.00 32.00 Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 Total 121.17 121.17 116.40 117.10 116.20 114.20 103.50 119.10 124.20 132.75 Notes:

Police (2020) reduced by one FTE to reflect actually adopted.

Starting in 2023 the Economic Development FTE is included in the Administration Department Source: City of Signal Hill, Finance Department
Parks, Recreation, and
Fiscal Year Ending June 30,
City of Signal Hill
Operating Indicators by Function
Last Ten Fiscal Years
-146-
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police
Calls for service 9,842 9,948 8,632 9,078 8,292 8,382 8,172 8,146 10,203 8,693 Reports written 3,894 4,332 5,618 5,061 4,504 3,804 4,345 4,658 4,151 4,317 Total arrests 1,390 1,216 1,403 1,074 987 880 848 823 861 760 Hazardous traffic citations 2,496 1,703 3,638 3,613 4,116 3,229 2,616 2,011 2,498 1,807 Parking citations 3,866 4,628 4,222 4,092 4,444 3,737 3,293 4,786 5,165 4,453 Community Development
Code enforcement cases 77 68 67 59 48 32 41 42 198 236
Building permits 247 236 279 233 281 249 250 341 309 351 Site plan design reviews 5 6 6 5 4 3 4 5 6 2
Water
Number of customers 3,116 3,162 3,302 3,116 3,157 3,147 3,142 3,146 3,145 3,140 Average daily consumption
(in millions of gallons) 1.77 1.59 1.58 1.57 1.54 1.55 1.60 1.56 1.33 1.39 Number of hydrants maintained 568 568 568 568 574 576 576 578 578 578 Public Works
Traffic signals maintained 31 31 33 18 13 33 33 33 33 33 Street sweeping miles 5,980 5,980 5,980 5,720 5,980 5,980 5,980 5,980 5,980 5,980 Sidewalk repairs (square feet) 6,362 4,504 1,762 8,731 1,965 2,988 2,541 3,274 3,324 5,650 Curb & gutter replaced (linear feet) - - - - 900 306 - 114 120 700 Cross gutter replaced (square feet) - - - - - 2,117 - 160 80 975 Engineering
Number of infrastructure
projects administered 3 3 10 15 17 13 11 18 23 24
Plan checks completed 8 7 39 74 92 110 115 102 115 110
Library items borrowed 39,761 38,947 29,164 26,029 20,612 35,742 6,665 36,525 45,281 54,256 Youth sports participants * 5,467 5,289 6,936 6,534 5,697 4,158 144 5,670 33,180 34,650 After school youth programs (Annual Program Participants)* 15,530 15,326 30,960 16,810 20,680 15,585 6,840 13,135 35,785 34,585 Facility rental bookings 681 620 251 345 176 167 - 107 84 86 Notes:
* 2023 included an increase in overall sports and youth programs offered.

Source: Various City Departments
Parks, Recreation, and Library Services
Fiscal Year Ending June 30,
City of Signal Hill
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
-147-
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Patrol Vehicles 10 10 10 10 10 10 10 10 11 11
Fire Stations 1 1 1 1 1 1 1 1 1 1
Water
Miles 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 3,619 3,667 3,667 3,667 3,520 3,467 3,414 3,365 3,342 3,091 Recreation and Culture
Parks *** 10 10 10 10 10 10 10 10 11 11
Area of Parks (Acres) 23.03 23.03 23.03 23.03 23.03 23.03 23.03 23.03 25.64 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 6 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 *** 2023 Heritage Point Park was completed
Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,