Annual
Comprehensive
Financial Report
Signal Hill, California
A Beacon of Progress
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CITY OF SIGNAL HILL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2025
Prepared by:
Department of Finance
Siamlu Cox
Administrative Services Officer/Finance Director
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City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
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) ................................. 4 Basic Financial Statements:
Government–Wide Financial Statements:
Statement of Net Position ....................................................................................................... 17 Statement of Activities ............................................................................................................ 18 Fund Financial Statements:
Governmental Funds:
Balance Sheet ........................................................................................................................ 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................ 22 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................... 25 Proprietary Funds:
Statement of Net Position ....................................................................................................... 26 Statement of Revenues, Expenses, and Changes in Net Position ........................................ 27 Statement of Cash Flows ....................................................................................................... 28 Fiduciary Funds:
Statement of Fiduciary Net Position ....................................................................................... 30 Statement of Changes in Fiduciary Net Position ..................................................................... 31 Notes to Basic Financial Statements ............................................................................................. 32 Required Supplementary Information:
Budgetary Comparison Schedules:
General Fund ................................................................................................................................ 78 Housing Authority Special Revenue Fund .................................................................................... 80 California Arts Council Grant Special Revenue Fund .................................................................... 81 Notes To Required Supplementary Information ........................................................................... 82 Schedule of Proportionate Share of the Net Pension Liability ............................................................ 83 Schedule of Contributions .................................................................................................................... 84 Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................. 85 Schedule of OPEB Plan Contributions ................................................................................................. 86 City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
TABLE OF CONTENTS, (Continued)
Supplementary Information:
Other Governmental Funds:
Description of Other Governmental Funds ................................................................................... 87 Combining Balance Sheet ............................................................................................................ 89 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................. 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Park Development Special Revenue Fund ............................................................................ 99 HCDA Grant Special Revenue Fund .................................................................................... 100 Special Gas Tax Special Revenue Fund .............................................................................. 101 Transportation Proposition A Special Revenue Fund .......................................................... 102 Pipeline Removal Special Revenue Fund ............................................................................ 103 Air Quality Improvement Special Revenue Fund ................................................................. 104 Water Development Special Revenue Fund ........................................................................ 105 Traffic Impact Special Revenue Fund .................................................................................. 106 Transportation Proposition C Special Revenue Fund .......................................................... 107 Lighting and Landscape Special Revenue Fund .................................................................. 108 Supplemental Law Enforcement Special Revenue Fund ..................................................... 109 Public Safety State Resources Special Revenue Fund ....................................................... 110 Housing Impact Special Revenue Fund ............................................................................... 111 MTA–STPL Grant Special Revenue Fund ........................................................................... 112 Measure M Special Revenue Fund ...................................................................................... 113 Transportation Measure R Special Revenue Fund .............................................................. 114 RMRA (SB1) Special Revenue Fund ................................................................................... 115 Measure W Special Revenue Fund ....................................................................................... 116 Capital Grants Special Revenue Fund ................................................................................. 117
STATISTICAL SECTION
Description of Statistical Section ....................................................................................................... 118 Financial Trends:
Net Position by Component – Last Ten Fiscal Years ................................................................. 119 Changes in Net Position By Component – Last Ten Fiscal Years ............................................. 121 Fund Balances of Governmental Funds – Last Ten Fiscal Years .............................................. 123 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................... 125 Revenue Capacity:
Assessed Value of Taxable Property – Last Ten Fiscal Years ................................................... 127 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ........................................ 128 Principal Property Tax Payers – Current Year and Nine Years Ago .......................................... 129 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................... 130 City of Signal Hill
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
TABLE OF CONTENTS, (Continued)
STATISTICAL SECTION, (Continued)
Debt Capacity:
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years .................................................... 131 Direct and Overlapping Governmental Activity Debt .................................................................. 132 Legal Debt Margin Information – Last Ten Fiscal Years ............................................................. 133 Pledged–Revenue Bond Coverage: Redevelopment Tax Allocation Bonds – Last Fiscal Years .................................................................................................................. 134 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ........................................... 135 Principal Employers – Current Year and Nine Years Ago .......................................................... 136 Operating Information:
Full–Time Equivalent City Government Employees by Department – Last Ten Fiscal Years ........................................................................................................... 137 Operating Indicators by Function – Last Ten Fiscal Years ......................................................... 138 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ...................................... 139 This page is intentionally left blank.
INTRODUCTORY SECTION
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i
CITY OF SIGNAL HILL
2175 Cherry Avenue Signal Hill, CA 90755-3799
December 3, 2025
To the Honorable Mayor, Members of the City Council,
and Residents of the City of Signal Hill
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, 2025. The purpose of this report is to provide residents, the City Council, 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, 2025. 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 present the City’s financial position and results of operations. All disclosures necessary to enable the reader to gain a good understanding of the City’s financial affairs have been included.
GAAP requires that management provide a narrative introduction and an overview to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A).
The MD&A immediately follows the independent auditor’s report and should be read in conjunction with this transmittal letter.
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Profile of the Government
The City of Signal Hill was incorporated in 1924 as a General Law City. On November 7, 2000, in a special election, the residents of Signal Hill approved a new City Charter, and the City effectively made the change from a General Law City to a Charter City under the California Constitution.
The City of Signal Hill, encompassing 2.2 square miles, is located in the southwestern coastal area of Los Angeles County and has an estimated population of 11,563. 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 remained 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.
Policy-making and legislative authority are vested in the governing City Council, which annually appoints a Mayor in December from among its members. The City Council appoints the City Manager, who is responsible for the day-to-day administration of City business and for coordinating all City departments. The City budgets for an authorized staff of approximately 136.72 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 Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 iii
Redevelopment Law.” The Agency was formed for the purpose of preparing and carrying out plans for the improvement, rehabilitation, and redevelopment of blighted areas within the City.
When the State dissolved all redevelopment agencies in early 2012, the City of Signal Hill opted to become the Successor Agency to the Signal Hill Redevelopment Agency. The Successor Agency is included in the financial statements as a Private Purpose Trust Fund and is not part of the City’s government-wide statements. Additional information is found in Note 17 of the Notes to the Basic Financial Statements.
The 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. Under the Redevelopment Dissolution Act, the use of the Public Financing Authority to assist in future financings is limited, as the former Agency, now the Successor Agency, is one of the parties to the joint powers agreement that formed the Public Financing Authority. The Dissolution Act contains language concerning the future termination of the Successor Agency 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
As 2025 draws to a close, the US economy offers a nuanced picture: growth is slowing, inflation is stabilizing, and the labor market is cooling slightly. Recent rate cuts signal a shift towards easing monetary policy, though tariffs are putting upward pressure on prices, the housing market, car sales, and other parts of the economy, impacting GDP growth. The outlook for 2026 is expected to decelerate to 1.4%, down from an anticipated 1.8% projected in 2025. Success hinges on whether the economy can absorb the price shock from tariffs without causing a Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 iv
significant rise in inflation, allowing the Federal Reserve to proceed with its planned rate cuts; growth is not expected to rebound above 2% until 2027.
The State of California’s economy shows pockets of significant strength driven by AI-related investment, while consumer retail activity is slowing. Despite the projected 1.4% growth in 2026, increases are not expected to restore revenues to the peak levels seen in FY 2022-23, indicating revenue growth is not keeping pace with the rising cost of doing business for local governments.
Deloitte Global Economics Research Center (Deloitte) forecasts that core inflation will rise to
3.3% in 2026, while overall CPI growth is expected to average 3.2% in 2026. This persistent inflation is largely attributed to the pass-through of tariffs related costs to consumers, which outweighs the moderating effects of slowing demand. Work stoppages from major labor strikes may also impact domestic budget spending. The Federal Reserve continues a rate-cutting cycle to achieve a soft landing; however, Deloitte projects that the recent 25 basis point reduction is not expected to create a surge in consumer spending but rather aims to bring the federal funds target rate to 3.125% by the fourth quarter of 2026.
Local government's fiscal exposure during the economic shifts is best observed when analyzing the elasticity of general fund revenue. The City of Signal Hill's general fund revenue portfolio’s strength lies in its diverse revenue sources. 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 resilient, with overall sales tax revenue remaining strong and total point-of-sale tax revenues increasing by 1% from the previous year. The City’s transaction and use tax, Measure SHR (MSHR), declined by 3% from the prior year; however, the addition of MSHR remains a significant contributor to increases in overall sales tax revenue. Measure SHR generated 26% of the Bradley Burns amount, with general consumer goods continuing to produce the most sales tax revenue.
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 another robust year-over-year growth of 9%, a portion of which can be attributed to the addition of new car dealerships in the City. County Pool Allocations continue to grow, with 4% year-over-year growth, as projected by HdL. Business and Industry experienced a 9% loss over the prior year, while General Consumer Goods experienced a 4% loss over the preceding year. Building and Construction remains flat compared to the previous year, with conditions expected to persist. Although interest rates have fallen in the short term, consumers continue to suspend big-ticket purchases. As a result, this sector is not likely to grow until FY 2026-27.
The City's second most significant source of revenue is derived from the Use of Money, which is predominantly driven by Investment Income. While this income stream remains robust, we have observed a modest decrease, moving from $4.9 million in the previous fiscal year to $4.6 million in FY2024-25. The City has leveraged the unusually high, volatile interest rate market environment to maximize investment returns while still prioritizing safety and liquidity. The City Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 v
anticipates a moderation and subsequent decline in this specific revenue source over the next few years as prevailing market interest rates are projected to normalize.
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 decline and buyers face challenges amid rising median sale prices. In comparison, California’s median home price increased by 4.6% as of April 2024, with Southern California’s median home prices increasing by 1.9% based on HdL 's property tax division. The City’s overall net taxable property value changed by 4.4%. Staff would note 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 change in property values is likely related to current oil prices. Property tax rolls are set before 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 and compete against other budget priorities. The highest obligated costs include pension 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 11.6% for FY 2024-25. When factoring in CalPERS’ discount rate of 6.8% and the FY 2024-25 preliminary return of 11.6%, the estimated funded status now stands at 79% as of June 30, 2025, for the Public Employees Retirement Fund (PERF). The recent gains and losses, changes in the discount rate, and assumption changes have led to variable funding status, which directly impacts 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 that reviewed the City’s overall user and regulatory fee structure, fee bases, and cost recovery. The projected positive fiscal impact has been incorporated into the current biennial budget. In addition, the City conducted a water rate study and a water master plan to review the Water Utility fund, ensuring overall fiscal sustainability and prioritizing water infrastructure needs and future capital improvement planning.
The water rate study was completed in 2025 and went into effect in July 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 base 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 housing project that includes a Boys and Girls Club, representing a $200 million Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 vi
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 have negotiated the terms of an Affordable Housing Agreement for the Walnut Bluff property that specifies the terms, conditions, and timing of the City’s funding contribution.
FY 2025-26 Operating Budget
Based on industry forecasts and historical and current data, and in line with its long-standing commitment to fiscal prudence, the City employed conservative budgeting principles for the FY 2025-26 budget. The City’s FY 2025-26 Operating Budget focuses on the continued delivery of quality core municipal services, proactively addressing safety and deferred maintenance and operational needs, and 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 analyses 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 expanding current community and recreation programs, increasing public engagement through communications, committees, and other city events, and planning for future economic development. The budget also reflects the utilization of government relief program funding, special revenues, and grant programs in the City’s capital plan and operational expenditures.
While the budget continues to reflect tempered optimism, the current global and local economies continue to face ongoing challenges that may lead to reevaluating spending strategies. The City’s future economic health will be dependent on maintaining healthy reserves through fiscally conservative budgets and policies, planning for economic development opportunities, and maintaining its strong financial position through prudent, long-range policy decisions and sound fiscal management. The City will continue to monitor key economic indicators, sources of revenue, and spending levels as part of its sound, conservative fiscal approach.
Long Term Financial Planning
The community, City Council, and staff helped craft the 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 Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 vii
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.
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.
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 to preserve 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 $6.4 million in annual revenues in FY 2024-25 to help fund programs such as streets, pothole and infrastructure repair, clean public areas, 9-1-1 emergency response, and crime prevention.
In FY 2024-25, the City adopted a new Reserve Policy with the aim of reaffirming sound financial management, which includes the practice and discipline of maintaining adequate reserve funds for known and unknown contingencies. The City will follow this new General Fund Reserve Policy to formalize the City’s financial reserve targets and reserve criteria. These reserves would Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 viii
be utilized to mitigate the adverse impact of an economic slowdown, a recession, or the loss of a major sales tax provider. The unassigned fund balance in the General Fund and the fund balance of the Economic Uncertainties Fund were approximately 101% of FY 2024-25 General Fund budgeted operating expenditures, which exceeds the minimum target range of 75% to 100%. 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 of information systems, risk management, and fiscal operations. Fiscal operations include general accounting, financial reporting, treasury and investment functions, business permits, capital improvement project fiscal administration, payroll, accounts payable, accounts receivable, and water utility billing.
The Finance Department is responsible for establishing and maintaining an internal control structure designed to ensure the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting and financial reporting data are compiled and available to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States. The internal control structure is designed to provide reasonable, but not absolute, assurance 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 provide reasonable assurance of proper recording of financial transactions.
Single Audit
The City is legally required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Uniform Guidance, Audits of State and Local Governments, if total federal grant expenditures exceed $750,000 in a single year. Throughout the course of FY 2024-25, the City did not expend federal funds in excess of the $750,000 threshold, therefore no Single Audit will be required.
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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.
Spending Limitation
Management foresees no problem for several years in complying with the spending limitation under the Gann Initiative passed by the California voters in 1979, which created Article XIIIB of the State Constitution. The City's independent auditors have attested to the accuracy of the computation of the spending limitations for the current period, which indicated that the City’s tax proceeds are substantially under the established Gann Limit and are not expected to reach that limit in the foreseeable future.
Independent Audit
The City's Municipal Code requires an annual audit by independent, certified public accountants.
The accounting firm RAMS is responsible for auditing the City’s accounting records. The auditor's report on the basic financial statements, combined and individual fund statements, and schedules is included in the financial section of this report.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Signal Hill for its ACFR for the fiscal year ended June 30, 2024. This recognition was the 29 th 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 Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 x
comprehensive financial report; this report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements.
The preparation of this annual comprehensive financial report was made possible by the staff of the Finance Department, the City Manager’s Office, and the expertise and assistance of the City’s auditors Rogers, Anderson, Malody & Scott, 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
Docusign Envelope ID: 0FCA2E7E-64BA-49CE-BB91-ECC0CFB7A798 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, 2024
Executive Director/CEO
-xiiCITY OF SIGNAL HILL
CALIFORNIA
FOR FISCAL YEAR
2024-2025
ELECTED OFFICIALS
Keir Jones Tina L. Hansen
Mayor Vice Mayor
Robert D. Copeland Charlie Honeycutt Lori Y. Woods
Council Member Council Member Council Member
David Hopper Daritza Perez
City Treasurer City Clerk
-xiiiCOMMISSIONS
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
EXECUTIVE ADMINISTRATION
COMMUNICATIONS AND PUBLIC RELATIONS
PROGRAM ADMINISTRATION
PERSONNEL
SUCCESSOR AGENCY
HOUSING AUTHORITY
ECONOMIC DEVELOPMENT
ADMINISTRATION
RESIDENTS OF SIGNAL HILL
NON DEPARTMENTAL
INFORMATION TECHNOLOGY
RISK MANAGEMENT
FINANCE OPERATIONS / BUDGET
WATER BILLING ADMINISTRATION
BUSINESS LICENSE / CUSTOMER SERVICE
FINANCE & ADMINISTRATIVE SERVICES
COMMUNITY OUTREACH
PATROL SERVICES
INVESTIGATIVE SERVICES
POLICE SUPPORT SERVICES
POLICE COMMUNICATIONS / JAIL
POLICE RECORDS
EMERGENCY / DISASTER SERVICES
POLICE
RESIDENTS OF SIGNAL HILL
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FINANCIAL SECTION
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Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
CERTIFIED PUBLIC ACCOUNTANTS
-1-
Independent Auditor’s Report
Honorable Mayor and City Council
City of 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, 2025 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described in Note 1 to the financial statements during the year ended June 30, 2025, the City adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated Absences. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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. -2-
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 Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. -3-
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 3, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
San Bernardino, California
December 3, 2025
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City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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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, 2025 (FY 2024-25). 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, 2025.
FINANCIAL HIGHLIGHTS
The comparisons provided in this discussion and analysis are between FY 2023-24 and FY 2024-25; all increases and decreases are expressed relative to FY 2023-24 amounts. Financial highlights for FY 2024-25 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 $182.7 million in FY 2023-24 and $196.9 million in FY 2024-25.
Of this amount, $59.6 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 $117.6 million and restricted of $19.7 million. The City's total net position increased by $14.1 million over FY 2023-24 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 kept interest rates relatively flat, maintaining the City's investment portfolio at 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, 2025, governmental funds report a combined fund balance of $103.1 million, an increase of $8.6 million from the prior year. Of this amount, $30.7 million is available for spending at the City's discretion (unassigned fund balance).
As of June 30, 2025, the General Fund reports an ending fund balance of $82.9 million. Of this amount, $30.7 million is available for spending at the City's discretion (unassigned fund balance).
Cash and investments of the General Fund total $69.9 million, which represents 84.3% of the General Fund's $82.9 million fund balance.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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As of June 30, 2025, the City's Water Enterprise fund reports an ending net position of $29 million, an increase of $0.8 million, or 2.9%, from the prior year. The net position is classified as net investment in capital assets of $27.4 million and unrestricted net position of $1.6 million. In 2025, the City completed a Proposition 218 water rate study, which is expected to result in a steady revenue increase to offset Water Utilities Enterprise Fund activity. As of June 30, 2025, the City's Internal Service fund reports an ending net position of $3.7 million.
Of this amount, $1.5 million is set aside 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 17 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.
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.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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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, California Arts Council Grant 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 20.
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 26 of this report.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, or other funds. Fiduciary funds are not included in the government-wide financial statements because their assets are not available to support the City's activities.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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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 30 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 32 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, 2024, and June 30, 2025, and is as follows:
Condensed Statement of Net Position
Governmental Activities Business-Type Activities Totals 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Assets:
Current and other assets 142,729,050 $ 134,629,654 $ 6,333,503 $ 6,031,486 $ 149,062,553 $ 140,661,140 $ Capital assets, net 113,742,502 108,706,050 29,360,957 29,918,742 143,103,459 138,624,792 Total Assets 256,471,552 243,335,704 35,694,460 35,950,228 292,166,012 279,285,932 Deferred outflows of resources:
Deferred amount on refunding - - 6,500 23,834 6,500 23,834 Deferred amounts from pension 10,675,491 14,655,757 1,276,854 928,108 11,952,345 15,583,865 Deferred amount from OPEB 1,419,825 1,769,701 92,520 174,587 1,512,345 1,944,288 Total Deferred Outflows 12,095,316 16,425,458 1,375,874 1,126,529 13,471,190 17,551,987 Liabilities:
Current liabilities * 11,775,200 11,222,833 1,188,323 2,654,317 12,963,523 13,877,150 Long-term liabilities 63,540,567 68,300,110 6,562,852 5,948,866 70,103,419 74,248,976 Total Liabilities 75,315,767 79,522,943 7,751,175 8,603,183 83,066,942 88,126,126 . Deferred inflows of resources:
Deferred amounts from pension 1,084,476 1,684,711 130,785 128,995 1,215,261 1,813,706 Deferred amount from OPEB 2,683,643 1,482,047 174,873 146,209 2,858,516 1,628,256 Deferred amounts from Leases 21,598,532 22,431,097 - - 21,598,532 22,431,097 Total Deferred Inflows 25,366,651 25,597,855 305,658 275,204 25,672,309 25,873,059 Net position:
Net investment in capital assets 90,126,594 84,083,143 27,436,406 27,073,694 117,563,000 111,156,837 Restricted 19,702,690 18,898,879 - - 19,702,690 18,898,879 Unrestricted 58,055,166 51,658,342 1,577,095 1,124,676 59,632,261 52,783,018 Total Net Position 167,884,450 $ 154,640,364 $ 29,013,501 $ 28,198,370 $ 196,897,951 $ 182,838,734 $ *as restated due to prior year correction, see Note 18
Over time, net position may serve as a useful indicator of a City's financial position. At June 30, 2025, the City’s net position was $196.9 million, an increase of $14.2 million or 9.3%, over the net position of $182.7 million at June 30, 2024.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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The largest portion of the City's net position ($117.6 million or 59.7%) 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, and completed projects such as the Hillbrook Park project, ongoing pavement management improvements, sidewalk repair, and the Panorama Promenade emergency repair project.
The City's restricted net position totals $19.7 million (10% 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 $59.6 million (30.3%) 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 $14.1 million from an excess of revenues over expenses. This net increase was reflected by an increase of $6.4 million and $6.0 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 $14.1 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 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Revenues:
Program revenues:
Charges for services 3,220,248 $ 2,958,434 $ 7,385,061 $ 6,766,909 $ 10,605,309 $ 9,725,343 $ Grants and contributions:
Operating 2,420,492 5,052,635 - - 2,420,492 5,052,635 Capital 1,371,972 1,772,478 - - 1,371,972 1,772,478 General revenues:
Property taxes 3,509,754 3,106,610 - - 3,509,754 3,106,610 Sales and use taxes 28,312,131 28,053,616 - - 28,312,131 28,053,616 Other taxes 2,380,421 2,397,255 - - 2,380,421 2,397,255 Investment income 5,397,765 5,167,205 457,050 313,178 5,854,815 5,480,383 Unrestricted grants and contributions 1,184,653 622,705 - - 1,184,653 622,705 Total revenues 47,797,436 49,130,938 7,842,111 7,080,087 55,639,547 56,211,025 Expenses:
General government 7,058,552 7,318,373 - - 7,058,552 7,318,373 Parks, recreation, and library services 3,537,364 3,710,796 - - 3,537,364 3,710,796 Police 14,552,465 12,988,649 - - 14,552,465 12,988,649 Community development 1,659,960 1,469,814 - - 1,659,960 1,469,814 Public works* 5,751,217 6,183,809 - - 5,751,217 6,183,809 Interest expense 459,585 511,542 107,532 96,800 567,117 608,342 Unallocated infrastructure depreciation 1,491,716 445,747 - - 1,491,716 445,747 Water - - 6,961,939 4,938,644 6,961,939 4,938,644 Total expenses 34,510,859 32,628,730 7,069,471 5,035,444 41,580,330 37,664,174 Excess of revenues over expenses 13,286,577 16,502,208 772,640 2,044,643 14,059,217 18,546,851 Transfers (42,491) (2,535,052) 42,491 2,535,052 - - Change in net position 13,244,086 13,967,156 815,131 4,579,695 14,059,217 18,546,851 Net position, beginning, restated 154,640,364 140,673,208 28,198,370 23,618,675 182,838,734 164,291,883 Net position, ending 167,884,450 $ 154,640,364 $ 29,013,501 $ 28,198,370 $ 196,897,951 $ 182,838,734 $ *as restated due to prior year correction, see Note 18
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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Government-wide revenues decreased by $0.6 million (1%) to $55.6 million. The majority of this decrease resulted from an increase of $0.37 million in investment income, $0.26 million in sales and use taxes, $0.4 million in property taxes, and $0.88 million in charges for services as well as a decrease of $2.5 million in grants. 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 offset by a $3.3 million decrease in grants and contributions compared to the prior year, as $2.5 million of American Rescue Plan Act Funds (ARPA) were received in the prior fiscal year.
The most significant portion of the City's revenue came from sales and use tax which accounted for
59.0% of total revenue, charges for services accounted for 7.0%, 8.0% was received from grants and contributions, and 11.0% is attributed to investment income. Additionally, 7.0% of revenues are attributed to property taxes, and 5.0% from other taxes.
Government-wide expenses of all City programs and services increased by a net $3.9 million (9.1%) to $41.6 million for the fiscal year ended June 30, 2025. Governmental Activities increased by $1.9 million, and Business Type Activities increased by $2.0 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 decreases in General Government by $0.8 million; Parks, Recreation, and Library services by $0.2 million; and Public Works by $0.6 million as well as increases in Police Department by $1.6 million and Community Development by $0.2 million. The Water Fund had a total expense of $7.1 million which reflects an increase of $2.0 million.
The Police Department accounted for 42.0% of the total costs, General Government for 20.0%, and Public Works for 17.0%, with Parks, Recreation, and Library Services for 10.0%, Community Development for 5.0%, and Interest Expense for 1.0%.
The following two charts show the source and use of funds for Governmental Activities:
Governmental activities contributed $13.3 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 decrease over the prior year of $1.3 million (2.8%), to $47.8 million. A decrease of $2.5 million was due to ARPA funds received in the previous year, offset by increases in actual sales and use tax revenues of $0.3 million higher than estimated; $0.4 million in property taxes; and $0.2 million in investment income.
Expenses of governmental activities increased by a net $1.8 million (5.3%). Expenses include long-term debt and pension costs. The net increase is spread across the City's programs with the Police Department increasing by $1.6 million; General Government decreasing by $0.3 million; Parks, Recreation, and Library Services decreasing by $0.2 million; Community Development increasing by $0.2 million; Public Works decreasing by $0.6 million; and unallocated infrastructure depreciation increasing $1 million. Interest expense experienced a very negligible change.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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Operating Grants, 5%
Other Revenue, 2%
Sales & Use Tax, 59%
Property Taxes, 7%
Other Taxes, 5%
Charges for Services, 7%
Investment Income, 11%
Capital Grants, 3%
Revenues by Source - Governmental Activities
Fiscal Year 2024-25
Interest Expense, 1%
Unallocated Depreciation, 4%
Public Works, 17%
Parks, recreation, and library
services, 10%
Police, 42%
Community Development, 5%
General Government, 20%
Expenses - Governmental Activities
Fiscal Year 2024-25
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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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 $29.0 million as compared to $28.2 million at the end of the prior year. This represents an increase in net position of $0.8 million or 2.9%. The increase can be attributed to actual revenues of more than actual expenses.
Revenues of $7.4 million consist of charges for services. This is an increase of $0.6 million or 9.1% over the prior year's total revenue of $6.8 million. The increase is mainly due to increased water rates as compared to the prior year. Expenses totaled $7.1 million in the current year, an increase of $2.0 million over the prior year's expenses of $5.0 million. The majority of the increase is attributed to an increase in personnel costs due to being fully staffed, versus having several vacant positions in the prior year. For more details relating to the Water Utilities Enterprise Fund activities and water management plan please see the City's Website.
Investment Income, 6%
Charges for Services, 94%
Revenues by Source - Business-type Activities
Fiscal Year 2024-25
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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Depreciation, 14%
Other, 4%
Interest Expense, 2%
Personnel, 36%
Contractual, 9%
Supplies, 24%
Utilities, 5%
Materials & Repairs, 6%
Expenses - Business-type Activities
Fiscal Year 2024-25
FUND FINANCIAL ANALYSIS
The City's major governmental funds for FY 2024-25 were the General Fund, the Housing Authority Special Revenue Fund, California Arts Council Grant Fund and the Capital Improvement Capital Projects Fund.
General Fund
The General Fund's fund balance increased by $7.0 million in FY 2024-25. This increase resulted from revenues and transfers-in totaling $42.8 million and $0.2 million, respectively, exceeding expenditures, net of subscription and lease acquisition sources, totaling $31.5 million and transfers out totaling $4.5 million
General Fund revenues increased by a net of $0.9 million compared to FY 2023-24. This increase resulted from an increase in taxes of $0.4 million; an increase in charges for services of $0.4 million; and an increase in other revenue of $0.6 million as a result of a subscription termination. These increases were offset by decreases in investment income of $0.3 million and licenses and permits of $0.1 million.
Overall, the General Fund’s operating expenditures were higher than the prior year by $2.2 million, mainly due to increases in police as well as capital outlay expenditures.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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Housing Authority Special Revenue Fund
The Housing Authority fund balance increased by $0.8 million to $7.9 million as compared to the prior year's fund balance of $7.2 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 $0.4 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.
California Arts Council Grant Special Revenue Fund
The California Arts Council Grant Special Revenue Fund is used to account for grant funds received from the State that are restricted for the renovation and redesign of the Signal Hill amphitheater capital project.
Capital Improvement Capital Projects Fund
Capital expenditures within the Capital Improvement Capital Projects Fund totaled $6.6 million for the fiscal year. The major projects worked on in FY 2024-25 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 $1.0 million in new appropriation, excluding positive fund balance reserve adjustments utilizing the prior year’s positive fund balance. The approved appropriations were mainly related to contract services adjustments.
Total General Fund revenues of $42.8 million were $5.4 million higher than the budgeted amount of $37.3 million. The increase over the FY 2023-24 Operating results was mainly due to an increase in the City’s significant revenue sources. Sales tax exceeded the budget by $1.2 million, mainly driven by the Autos and Transportation business sector out-performing expectations. However, looking forward, sales tax revenue is expected to remain relatively flat for FY 2025-26 with signs of slowing growth in certain business sectors. Overall, sales tax revenue is budgeted conservatively using updated industry expert information. Interest income exceeded budget by $2 million due to the annual unrealized interest gain/loss accounting adjustment also called the mark to market adjustment required by GASB No. 31.
Charges for services actuals were higher than budget by $0.9 million due to trash host fee actual revenue exceeding expectations. Other revenue actuals also surpassed budgeted amounts by $0.8 million due to GASB 96 adjustments made on the termination of subscription. And finally, property tax actuals exceeded budgeted amounts by $0.4 million due to property tax remittance amounts exceeding expected amounts.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-14-
Total General Fund expenditures of $31.5 million net of subscription acquisition costs were projected at $38.0 million, coming in at $0.7 million lower than projected. In comparison to the budget, actual expenditures were below the current budget by $4.3 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 current 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, 2025, totaled $143 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 2024-25 had a net increase in capital assets of $4.5 million. The increase was mainly due to the additional and ongoing projects increasing construction in progress, and additions 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 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Land 35,547,000 $ 35,519,323 $ 4,427,416 $ 4,427,416 $ 39,974,416 $ 39,946,739 $ Water rights - - 183,173 213,553 183,173 213,553 Construction in progress 3,196,305 2,690,199 350,035 294,010 3,546,340 2,984,209 Buildings & equipment 43,429,828 39,600,772 24,280,634 24,844,271 67,710,462 64,445,043 Infrastructure 16,824,273 15,896,801 - - 16,824,273 15,896,801 Right-to-use assets 14,745,096 14,998,955 119,699 139,492 14,864,795 15,138,447 Total assets 113,742,502 $ 108,706,050 $ 29,360,957 $ 29,918,742 $ 143,103,459 $ 138,624,792 $ Debt Administration
Following is a summary of the City's long-term liabilities:
Long-term Liabilities
Governmental Activities Business-Type Activities Totals 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Water revenue bonds - $ - $ 564,521 $ 1,146,576 $ 564,521 $ 1,146,576 $ Lease revenue bonds 6,387,867 7,090,916 - - 6,387,867 7,090,916 Water replenishment district loan - - 1,220,930 1,360,465 1,220,930 1,360,465 Leases payable 13,046,832 13,068,961 - - 13,046,832 13,068,961 Subscriptions payable 2,511,197 2,364,727 130,581 146,852 2,641,778 2,511,579 Net pension liability 34,497,275 37,148,439 4,245,670 2,474,285 38,742,945 39,622,724 Net OPEB liability 5,882,198 7,762,983 383,301 765,844 6,265,499 8,528,827 Compensated absences 1,215,198 864,084 17,849 54,844 1,233,047 918,928 Total long-term liabilities 63,540,567 $ 68,300,110 $ 6,562,852 $ 5,948,866 $ 70,103,419 $ 74,248,976 $ 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 $0.6 million at year-end. The lease revenue bonds are part of the City's governmental activities, and the outstanding bond liability is $6.4 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 $1.2 million at fiscal year-end.
City of Signal Hill
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
-15-
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 10D: 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 tariffs and 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 $38.9 million, an increase of $3.7 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 $43.4 million, an increase of $5.7 million to the adopted FY 2024-25 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, 2025
-16-
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, 2025
The accompanying notes are an integral part of these financial statements. -17-
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments 97,746,148 $ 11,861,720 $ 109,607,868 $ Receivables:
Accounts 623,028 1,000,223 1,623,251 Accrued interest 733,963 - 733,963 Due from other governments 5,232,449 - 5,232,449 Leases 23,483,892 - 23,483,892 Loans 1,640,906 - 1,640,906 From Successor Agency 5,553,819 - 5,553,819 Internal balances 6,528,518 (6,528,518) - Prepaid items 144,796 - 144,796 Land and improvements held for resale, net 1,040,642 - 1,040,642 Restricted Assets:
Cash and investments 889 78 967 Capital assets, not being depreciated 38,743,305 4,777,451 43,520,756 Capital assets, being depreciated and amortized, Net of accumulated depreciation and amortization 74,999,197 24,583,506 99,582,703 Total Assets 256,471,552 35,694,460 292,166,012 DEFERRED OUTFLOWS OF RESOURCES Deferred loss amount on debt refunding - 6,500 6,500 Pension related 10,675,491 1,276,854 11,952,345 OPEB related 1,419,825 92,520 1,512,345 Total Deferred Outflows of Resources 12,095,316 1,375,874 13,471,190 LIABILITIES Accounts payable 2,939,214 687,804 3,627,018 Accrued liabilities 1,841,408 44,740 1,886,148 Accrued interest payable 19,460 93,066 112,526 Deposits payable 406,935 362,713 769,648 Unearned revenue 6,568,183 - 6,568,183 Noncurrent liabilities:
Due within one year 2,055,486 727,003 2,782,489
Due in more than one year:
Other 21,105,608 1,206,878 22,312,486 Net pension liability 34,497,275 4,245,670 38,742,945 Net OPEB liability 5,882,198 383,301 6,265,499 Total Liabilities 75,315,767 7,751,175 83,066,942 DEFERRED INFLOWS OF RESOURCES Pension related 1,084,476 130,785 1,215,261 OPEB related 2,683,643 174,873 2,858,516 Lease related 21,598,532 - 21,598,532 Total Deferred Inflows of Resources 25,366,651 305,658 25,672,309
NET POSITION
Net investment in capital assets 90,126,594 27,436,406 117,563,000 Restricted for:
Capital improvements 3,214,018 - 3,214,018 Development impact 3,129,034 - 3,129,034 Transportation 5,366,169 - 5,366,169
Housing 7,993,469 - 7,993,469
Unrestricted 58,055,166 1,577,095 59,632,261 Total Net Position 167,884,450 $ 29,013,501 $ 196,897,951 $ City of Signal Hill
Statement of Activities
For the Fiscal Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -18-
Program Revenues
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
GOVERNMENTAL ACTIVITIES
General government 7,058,552 $ 42,414 $ 15,259 $ - $
Parks, recreation, and library services 3,537,364 214,012 - 349,025 Police 14,552,465 182,704 327,450 - Community development 1,659,960 849,842 817,732 45,583 Public works 5,751,217 1,931,276 1,260,051 977,364 Unallocated infrastructure depreciation 1,491,716 - - - Interest on long-term liabilities 459,585 - - - Total Governmental Activities 34,510,859 3,220,248 2,420,492 1,371,972 BUSINESS-TYPE ACTIVITIES Water 6,961,939 7,385,061 - -
Interest on long-term liabilities 107,532 - - - Total Business-Type Activities 7,069,471 7,385,061 - - Total 41,580,330 $ 10,605,309 $ 2,420,492 $ 1,371,972 $
GENERAL REVENUES
Taxes:
Property tax
Franchise tax
Oil production tax
Transient occupancy tax
Public service taxes
Motor vehicle in-lieu tax
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, as Previously Reported Restatement - correction of an error
Fund Balances, Beginning, as Restated
NET POSITION, END OF YEAR
The accompanying notes are an integral part of these financial statements. -19-
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Total
$ - (7,000,879) $ (7,000,879) $
- (2,974,327) (2,974,327)
- (14,042,311) (14,042,311)
- 53,197 53,197
- (1,582,526) (1,582,526)
- (1,491,716) (1,491,716)
- (459,585) (459,585)
- (27,498,147) (27,498,147)
423,122 - 423,122
(107,532) - (107,532)
315,590 - 315,590
315,590 (27,498,147) (27,182,557) 3,509,754 - 3,509,754 1,152,574 - 1,152,574 554,126 - 554,126 282,982 - 282,982
372,199 - 372,199
18,540 - 18,540 28,312,131 - 28,312,131 5,397,765 457,050 5,854,815 1,184,653 - 1,184,653 457,050 40,784,724 41,241,774
42,491 (42,491) -
815,131 13,244,086 14,059,217
28,198,370 154,498,110 182,696,480
- 142,254 -
28,198,370 154,640,364 182,696,480 $ 29,013,501 167,884,450 $ 196,755,697 $ City of Signal Hill
Balance Sheet
Governmental Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -20-
Housing Authority
Special Revenue
General Fund
ASSETS
Cash and investments 69,921,250 $ 7,369,487 $
Receivables:
Accounts 621,979 -
Interest 733,363 - Due from other governments 4,772,768 - Leases 23,483,892 - Loans - 1,634,868 Receivable due from Successor Agency 5,553,819 - Prepaid items 105,123 - Due from other funds 228,922 - Advances to other funds 6,535,236 - Land and improvements held for resale 425,001 615,641 Restricted assets:
Cash and investments 880 - Total assets 112,382,233 $ 9,619,996 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable 1,174,127 $ - $
Accrued liabilities 1,821,986 - Deposits payable 406,935 - Unearned revenue 7,790 30,000 Due to other funds - - Advances from other funds - 1,596,527 Total liabilities 3,410,838 1,626,527 Deferred inflows of resources:
Unavailable revenues 26,117,971 - Total deferred inflows of resources 26,117,971 - Fund balances:
Nonspendable 9,985,100 - Restricted - 7,993,469 Committed 42,156,778 - Unassigned 30,711,546 - Total fund balances 82,853,424 7,993,469 Total Liabilities, Deferred Inflows of Resources and Fund Balances 112,382,233 $ 9,619,996 $
The accompanying notes are an integral part of these financial statements. -21-
Capital
California Arts Improvement Other Total
Council Grant Capital Projects Governmental Governmental Fund Fund Funds Funds
$ 1,969,206 5,183,555 $ 11,482,590 $ 95,926,088 $
1,049 - - 623,028
- - 600 733,963
- - 459,681 5,232,449
- - - 23,483,892
- - 6,038 1,640,906
- - - 5,553,819
- - - 105,123
- - - 228,922
- - 1,589,809 8,125,045
- - - 1,040,642
- - 9 889 $ 1,970,255 5,183,555 $ 13,538,727 $ 142,694,766 $ $ 1,570,253 - $ 84,216 $ 2,828,596 $
- - 8,347 1,830,333
- - - 406,935
- 4,650,975 1,879,418 6,568,183
- - 228,922 228,922
- - - 1,596,527
1,570,253 4,650,975 2,200,903 13,459,496
- - 600 26,118,571
- - 600 26,118,571
- - - 9,985,100
400,002 532,580 11,337,224 20,263,275
- - - 42,156,778
- - - 30,711,546
400,002 532,580 11,337,224 103,116,699 $ 1,970,255 5,183,555 $ 13,538,727 $ 142,694,766 $ This page is intentionally left blank.
City of Signal Hill
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2025
The accompanying notes are an integral part of these financial statements. -22-
Fund Balances - Total Governmental Funds 103,116,699 $
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 35,547,000 $
Construction in progress 3,184,711
Infrastructure, net of accumulated depreciation 16,824,273 Structures and improvements, net of accumulated depreciation 39,280,334 Vehicles, equipment and furniture, net of accumulated depreciation 2,023,236 Total Capital Assets Used in Governmental Activities 96,859,554 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 14,742,754 Lease liability (13,046,832) Subscription liability (2,508,916) (812,994)
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. 4,520,039 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. 3,659,596 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 10,632,811 Deferred outflows of resources - OPEB 1,397,423 Deferred inflows of resources - pension (1,080,104) Deferred inflows of resources - OPEB (2,641,300)
8,308,830
Long-term liabilities and related accrued interest payable are not due and payable in the current period and, therefore, are not reported in the governmental funds:
Interest payable (19,460) Revenue bonds payable (6,387,867) Compensated absences (1,215,198) Net pension liability (34,355,360) Net OPEB liability (5,789,389) (47,767,274)
Net Position of Governmental Activities 167,884,450 $
City of Signal Hill
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -23-
(Previously major)
Housing Authority Capital Grants
Special Revenue Special Revenue
General Fund Fund
REVENUES
Property taxes 3,017,939 $ - $
Sales and use tax 28,312,131 - Other taxes 2,067,069 -
Licenses and permits 894,544 -
Intergovernmental revenues 76,140 -
Charges for services 2,484,840 -
Fines and forfeitures 135,682 -
Investment income 4,607,234 374,025 Other revenue 1,173,430 - Total Revenues 42,769,009 374,025
EXPENDITURES
Current:
General government 6,636,348 9,894 Parks, recreation, and library services 2,967,373 - Police 12,160,523 - Community development 1,341,301 -
Public works 5,920,420 -
Capital outlay 1,393,418 -
Debt service:
Principal 1,710,016 -
Interest 480,418 -
Total Expenditures 32,609,817 9,894 Excess (Deficiency) of Revenues Over (Under) Expenditures 10,159,192 364,131 OTHER FINANCING SOURCES (USES) Subscription acquisition 907,996 - Lease acquisition 244,080 - Transfers in 240,946 414,461 Transfers out (4,513,195) - Total Other Financing Sources (Uses) (3,120,173) 414,461 Net Changes in Fund Balances 7,039,019 778,592 Fund Balances (Deficit), Beginning, as Previously Reported 75,672,151 7,214,877 (142,000) Restatement - change from major to non-major - - 142,000 Restatement - prior year correction 142,254 Fund Balances (Deficit), Beginning, as Restated 75,814,405 7,214,877 - Fund Balances, Ending 82,853,424 $ 7,993,469 $ - $ The accompanying notes are an integral part of these financial statements. -24-
Capital
California Arts Improvement Non-major Total
Council Grant Capital Projects Governmental Governmental Fund Fund Funds Funds
$ - - $ - $ 3,017,939 $
- - - 28,312,131
- - 594,281 2,661,350
- - - 894,544
- 349,025 2,346,581 2,771,746
- - 33 2,484,873
- - - 135,682
- 532,580 594,037 6,107,876
- - - 1,173,430
- 881,605 3,534,932 47,559,571
- - - 6,646,242
- - - 2,967,373
- - 265,433 12,425,956
- - 369,369 1,710,670
- - 81,754 6,002,174
6,634,485 - - 8,027,903
- - - 1,710,016
- - - 480,418
6,634,485 - 716,556 39,970,752
(6,634,485) 881,605 2,818,376 7,588,819
- - - 907,996
- - - 244,080
6,634,485 - - 7,289,892
- (349,025) (2,601,163) (7,463,383)
6,634,485 (349,025) (2,601,163) 978,585
- 532,580 217,213 8,567,404
400,002 - 11,262,011 94,407,041
- - (142,000) -
142,254 -
400,002 - 11,120,011 94,549,295 $ 400,002 532,580 $ 11,337,224 $ 103,116,699 $ City of Signal Hill
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -25-
Net Change in Fund Balances - Total Governmental Funds 8,567,404 $ 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 7,553,609 $
Depreciation expense (2,050,471) Amortization expense (1,076,542) 4,426,596
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 (907,996) Lease acquisition (244,080) Repayment of revenue bonds 680,000 Repayment of subscription liability 763,807 Repayment of lease liability 266,209
557,940
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 (351,114) Net change in accrued interest payable (2,216) Amortization of bond premium 23,049 (330,281)
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. 133,068
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. 271,103 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. (699,783) 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. 318,039 Change in Net Position of Governmental Activities 13,244,086 $ City of Signal Hill
Statement of Net Position
Proprietary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -26-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
ASSETS
Current Assets:
Cash and investments 11,861,720 $ 1,820,060 $
Accounts receivable, net 1,000,223 - Prepaid items - 39,673 Total Current Assets 12,861,943 1,859,733 Noncurrent assets:
Restricted cash and investments 78 - Capital assets:
Land 4,427,416 - Construction in progress 350,035 11,594 Depreciable assets, net of accumulated depreciation 24,583,506 2,128,600 Total Noncurrent Assets 29,361,035 2,140,194 Total Assets 42,222,978 3,999,927
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss amount on debt refunding 6,500 - Pension related 1,276,854 42,680 OPEB related 92,520 22,402 Total Deferred Outflows of Resources 1,375,874 65,082
LIABILITIES
Current Liabilities:
Accounts payable 687,804 110,618 Accrued liabilities 44,740 11,075 Accrued interest payable 93,066 - Deposits payable 362,713 - Advances from other funds 6,528,518 - Current portion of long-term liabilities 727,003 1,124 Total Current Liabilities 8,443,844 122,817 Non-Current Liabilities:
Long-term liabilities, net of current portion 1,206,878 1,157 Net pension liability 4,245,670 141,915 Net OPEB liability 383,301 92,809 Total Long-term Liabilities 5,835,849 235,881 Total Liabilities 14,279,693 358,698
DEFERRED INFLOWS OF RESOURCES
Pension related 130,785 4,372 OPEB related 174,873 42,343 Total Deferred Inflows of Resources 305,658 46,715
NET POSITION
Net investment in capital assets 27,436,406 2,137,913 Unrestricted 1,577,095 1,521,683 Total Net Position 29,013,501 $ 3,659,596 $
City of Signal Hill
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -27-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
OPERATING REVENUES
Charges for services 7,334,290 $ 748,617 $
Other operating revenues 50,771 4,479
Total Operating Revenues 7,385,061 753,096 OPERATING EXPENSES Personnel services 2,509,810 248,909
Contractual services 604,038 19,907
Supplies 1,779,376 66,582
Material and repairs 424,381 93,767
Utilities 371,008 420
Depreciation/amortization 1,004,452 262,576 Other 268,874 25,629 Total Operating Expenses 6,961,939 717,790
OPERATING INCOME 35,306 423,122 NONOPERATING REVENUES (EXPENSES) Investment income 457,050 93,574
Interest expense (107,532) - Gain on sale of assets - 11,223 Total Nonoperating Revenues (Expenses) 349,518 104,797 Income Before Transfers 772,640 140,103
TRANSFERS
Transfers in 42,491 131,000
Changes in Net Position 815,131 271,103
Net position, beginning of year 28,198,370 3,388,493 Net position, end of year 29,013,501 $ 3,659,596 $ City of Signal Hill
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -28-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 7,359,122 $ - $
Receipts from interfund services provided - 755,535 Payments to suppliers (4,929,960) (226,212) Payments to employees (1,383,812) (227,589) Net Cash Provided by Operating Activities 1,045,350 301,734 CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Cash received from other funds 2,815,232 131,000 Net Cash Provided by Noncapital and Related Financing Activities 2,815,232 131,000
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from sale of capital assets - 23,628 Acquisition/construction of capital assets (446,667) (882,556) Principal paid (685,806) - Interest paid (136,340) - Net Cash Used for Capital and Related Financing Activities (1,268,813) (858,928) CASH FLOWS FROM INVESTING ACTIVITIES Investment income 457,050 93,574 Net Cash Provided by Investing Activities 457,050 93,574 Net increase (decrease) in cash and cash equivalents 3,048,819 (332,620) Cash and cash equivalents, beginning of year 8,812,979 2,152,680 Cash and cash equivalents, end of year 11,861,798 $ 1,820,060 $
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
AMOUNTS REPORTED ON THE STATEMENT OF NET POSITION
Cash and investments 11,861,720 $ 1,820,060 $
Restricted cash and investments 78 - Cash and Cash Equivalents at End of Fiscal Year 11,861,798 $ 1,820,060 $ NON-CASH CAPITAL FINANCING ACTIVITIES:
Subscription acquisition - $ 3,475 $
City of Signal Hill
Statement of Cash Flows, (Continued)
Proprietary Funds
For the Year Ended June 30, 2025
The accompanying notes are an integral part of these financial statements. -29-
Business-Type Governmental
Activity Activity
Vehicle and
Water Equipment
Enterprise Internal
Fund Service Fund
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income 423,122 $ 35,306 $
Depreciation/amortization 1,004,452 262,576 Change in assets, deferred outflows of resources, liabilities and deferred inflows of resources:
(Increase) decrease in assets:
Accounts receivable, net (25,939) 2,439 Prepaid items - (3,457) Deferred outflows of resources (266,679) 5,567 Increase (decrease) in liabilities:
Accounts payable (1,484,023) (16,450) Accrued liabilities 10,376 3,510 Deposits payable 1,740 - Compensated absences (36,995) - Deferred inflows of resources 30,454 16,387 Net pension liability 1,771,385 31,843 Net OPEB liability (382,543) (35,987) Net Cash Provided by Operating Activities 1,045,350 $ 301,734 $ City of Signal Hill
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
The accompanying notes are an integral part of these financial statements. -30-
Successor
Agency to the
Signal Hill
Redevelopment Other
Agency to the Postemployment
Private-Purpose Benefit
Trust Fund Trust Fund
ASSETS
Cash and investments 7,219,576 $ 5,125,051 $
Restricted cash and investments 8,075,968 - Capital assets:
Land 10,956,485 - Total Assets 26,252,029 5,125,051 DEFERRED OUTFLOWS OF RESOURCES Deferred loss amount on debt refunding 153,409 - Total Deferred Outflows of Resources 153,409 - LIABILITIES Accrued liabilities 3,264,272 - Accrued interest payable 191,413 - Long-term liabilities:
Due within one year 6,820,860 - Due in more than one year 7,417,443 - Payable to the City of Signal Hill 5,553,819 -
Total Liabilities 23,247,807 - NET POSITION
Restricted - Held in Trust 3,157,631 - Restricted for OPEB Trust - 5,125,051 Total Net Position 3,157,631 $ 5,125,051 $ City of Signal Hill
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
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
ADDITIONS
Distributions from County - Administered
Redevelopment Property Tax Trust Fund 12,486,527 $ - $
Contributions - employer - 965,072 Contributions - employee - 81,758 Investment earnings 155,635 551,752 Total Additions 12,642,162 1,598,582 DEDUCTIONS Personnel services 338,561 882,093 Contractual services 10,150 - Project costs 2,078,519 - Interest 906,176 - Administrative expenses - 12,620 Total Deductions 3,333,406 894,713 Change in Net Position 9,308,756 703,869 Net Position (Deficit), Beginning of Year (6,151,125) 4,421,182 Net Position, End of Year 3,157,631 $ 5,125,051 $
NOTES TO THE FINANCIAL STATEMENTS
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City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-32-
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
For the Year Ended June 30, 2025
-33-
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. Advances or due to/from, which are long-term and short-term internal borrowings, respectively, are eliminated on the governmentwide 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
For the Year Ended June 30, 2025
-34-
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 California Arts Council Grant Fund is used to account for the funds that were given to the city on October 18, 2022 Senator Lena A. Gonzalez presented $5 million in state funds for the renovation and redesign of the Signal Hill outdoor amphitheater.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-35-
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 governmental funds, (Continued):
The Capital Improvement Capital Projects Fund is used to account for major capital improvement projects not accounted for in other funds.
The City reports the following major enterprise fund:
The Water Enterprise Fund is used to account for financial activity relative to the purchase, production, storage and distribution of water used by the community, as well as the maintenance, repair and replacement of related equipment and pipeline. Revenues consist primarily of water sales.
Additionally, the City reports the following fund types:
Proprietary Funds
The Vehicle and Equipment Internal Service Fund is used to account for the furnishing of vehicle and equipment services to departments within the City. Costs of materials and services used are accumulated in this fund and charged to the user departments as such vehicles and equipment are used or services rendered.
Fiduciary Funds
The Successor Agency to the Signal Hill Redevelopment Agency Private Purpose Trust Fund is used to account for the county auditor controller's semi-annual property tax distributions from the Redevelopment Property Tax Trust Fund of the Successor Agency of the former Signal Hill Redevelopment Agency to pay amounts due on enforceable obligations and to pay for specified administrative costs.
The Other Postemployment Benefit Trust Fund is used to account for resources that are held in an irrevocable trust for the benefit of participants in the City's other postemployment benefit plan.
D) Implementation of New Accounting Pronouncements
For the fiscal year ended June 30, 2025, the financial statements include the adoption of GASB Statement No. 101 Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
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
For the Year Ended June 30, 2025
-36-
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, 2025, an increase in fair value of $1,177,115 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
For the Year Ended June 30, 2025
-37-
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
For the Year Ended June 30, 2025
-38-
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.
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
For the Year Ended June 30, 2025
-39-
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 2024-25, is to maintain, in reserves, 75%- 100% of General Fund adopted operating budgeted 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
For the Year Ended June 30, 2025
-40-
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, 2025, net investment in capital assets, was determined as follows:
Governmental Business-Type
Activities Activity
Capital assets, net of accumulated depreciation
and amortization 113,742,502 $ 29,360,957 $
Less:
Bonds, net of unamortized premiums and discounts (6,387,867) (564,521) Leases payable (13,046,832) - Subscriptions payable (2,511,197) (130,581) Loan payable - (1,220,930) Accounts payable related to capital assets (1,577,468) (15,019) Retentions payable related to capital assets (92,544) - Add Back:
Unamortized deferred loss amount on debt refunding - 6,500 Total 90,126,594 $ 27,436,406 $
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-41-
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, 2025 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 109,607,868 $ 12,344,627 $ 121,952,495 $ Restricted cash and investment 967 8,075,968 8,076,935 Total Cash and Investments 109,608,835 $ 20,420,595 $ 130,029,430 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-42-
NOTE 2 CASH AND INVESTMENTS, (Continued)
Cash and investments at June 30, 2025 consisted of the following:
Cash on hand 7,750 $
Deposits with financial institutions 7,455,252
Investments 122,566,428 Total Cash and Investments 130,029,430 $ 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
For the Year Ended June 30, 2025
-43-
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 35,420,772 $ 35,420,772 $ - $ - $ California Asset Management Program 28,034,842 28,034,842 - - US Government Agency Securities 11,107,724 3,933,604 3,850,442 3,323,678 Domestic Certificates of Deposit 9,631,483 3,198,389 2,908,392 3,524,702 Money Market Mutual Funds 11,793,286 11,793,286 - - Municipal Obligations 2,397,795 - - 2,397,795 Supranationals 7,534,062 1,002,030 491,113 6,040,919 California CLASS 8,569,529 8,569,529 - - Held by Trustees:
Money Market Mutual Funds 8,076,935 8,076,935 - - Total 122,566,428 $ 100,029,387 $ 7,249,947 $ 15,287,094 $ 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, 2025 Rating AAA AA+ Rated
Local Agency Investment Fund 35,420,772 $ N/A - $ - $ 35,420,772 $ California Asset Management Program 28,034,842 N/A - - 28,034,842 US Government Agency Securities 11,107,724 AA - 11,107,724 - Domestic Certificates of Deposit 9,631,483 N/A - - 9,631,483 Money Market Mutual Funds 11,793,286 AAA - - 11,793,286 Municipal Obligations 2,397,795 A - 2,397,795 - Supranationals 7,534,062 AA 7,534,062 - - California CLASS 8,569,529 N/A 8,569,529 - - Held by Trustees:
Money Market Mutual Funds 8,076,935 AAA - - 8,076,935 Total 122,566,428 $ 16,103,591 $ 13,505,519 $ 92,957,318 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-44-
NOTE 2 CASH AND INVESTMENTS, (Continued)
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City had investments in Federal Home Loan Bank, California Asset Management Program and California CLASS represented
6.23%, 22.87% and 6.99%, respectively of total City's investments. All other issuers were individually less than 5% of the total City’s investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City's deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, 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
For the Year Ended June 30, 2025
-45-
NOTE 2 CASH AND INVESTMENTS, (Continued)
Investment in the California Cooperative Liquid Assets Securities System – The City is a voluntary participant in the California Cooperative Liquid Assets Securities System (California CLASS). California is joint exercise of powers entity authorized under Section 6509.7, California Government Code. California CLASS is a pooled investment option that was created via a joint exercise of powers agreement by and among California public agencies. The fair value of the City’s investment in the pool is reported in the accompanying financial statements.
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 $1,177,115 fair value adjustment recognized as of June 30, 2025:
Quoted Observable Unobservable
Prices Inputs Inputs
Total Level 1 Level 2 Level 3
U.S. Government Agency Securities 11,107,724 $ - $ 11,107,724 $ - $ Municipal Obligations 2,397,795 - 2,397,795 - Supranationals 7,534,062 - 7,534,062 - - 21,039,581 $ 21,039,581 $ - $
Local Agency Investment Fund 35,420,772 California Asset Management Program* 28,034,842 Domestic Certificates of Deposit* 9,631,483 Money Market Mutual Funds* 11,793,286 California CLASS* 8,569,529
Held by Trustees:
Money Market Mutual Funds* 8,076,935
Total 122,566,428 $
* 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, 2025 was a positive 12.20%. 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
For the Year Ended June 30, 2025
-46-
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Governmental Activities:
Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated:
Land 35,519,323 $ 27,677 $ - $ 35,547,000 $
Construction in progress 2,690,199 5,447,333 (4,941,227) 3,196,305 Total capital assets, not being depreciated 38,209,522 5,475,010 (4,941,227) 38,743,305 Capital assets, being depreciated and amortized:
Structure and improvements 50,740,661 4,885,874 - 55,626,535 Equipment and furniture 4,954,758 107,313 - 5,062,071 Vehicles and major equipment 3,449,934 613,793 (179,839) 3,883,888 Right-to-use lease assets - equipment 1,151 150,830 - 151,981 Right-to-use lease assets - land improvements - 93,250 - 93,250 Right-to-use lease assets - infrastructure 13,749,881 - - 13,749,881 Right-to-use subscription assets 3,379,010 996,690 (651,591) 3,724,109 Infrastructure 35,369,343 1,473,867 - 36,843,210 Total capital assets, being depreciated and amortized 111,644,738 8,321,617 (831,430) 119,134,925 Less accumulated depreciation and amortization for:
Structure and improvements (14,420,183) (1,213,325) - (15,633,508) Equipment and furniture (2,685,806) (309,709) - (2,995,515) Vehicles and major equipment (2,438,592) (242,485) 167,434 (2,513,643) Right-to-use lease assets - equipment (1,151) (23,741) - (24,892) Right-to-use lease assets - land improvements - (21,941) - (21,941) Right-to-use lease assets - infrastructure (1,196,097) (400,234) - (1,596,331) Right-to-use subscription assets (933,839) (631,759) 234,637 (1,330,961) Infrastructure (19,472,542) (546,395) - (20,018,937) Total accumulated depreciation and amortization (41,148,210) (3,389,589) 402,071 (44,135,728) Total capital assets, being depreciated and amortized, net 70,496,528 4,932,028 (429,359) 74,999,197 Total capital assets, net 108,706,050 $ 10,407,038 $ (5,370,586) $ 113,742,502 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-47-
NOTE 3 CAPITAL ASSETS, (Continued)
Business-Type Activities:
Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
Capital assets, not being depreciated:
Land 4,427,416 $ - $ - $ 4,427,416 $
Construction in progress 294,010 146,071 (90,046) 350,035 Total capital assets, not being depreciated 4,721,426 146,071 (90,046) 4,777,451 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 12,626,119 - 12,626,119
Pumps 1,384,407 9,206 - 1,393,613 Fire hydrants 564,667 - - 564,667 Meters 460,143 59,196 - 519,339 Services 1,443,630 - - 1,443,630 Structures 1,243,976 - - 1,243,976 Right-to-use subscription assets 175,226 - - 175,226 Equipment and furniture 1,137,472 322,240 - 1,459,712 Total capital assets, being depreciated and amortized 47,368,876 390,642 - 47,759,518 Less accumulated depreciation and amortization for:
Water rights (1,001,633) (30,380) - (1,032,013) Reservoirs and tanks (6,485,725) (261,146) - (6,746,871) Wells (2,738,471) (358,110) - (3,096,581)
Mains (7,175,660) (235,352) - (7,411,012)
Pumps (1,292,237) (15,270) - (1,307,507)
Fire hydrants (562,378) (606) - (562,984) Meters - (23,008) - (23,008) Services (1,020,536) (27,579) - (1,048,115) Structures (779,305) (28,673) - (807,978) Right-to-use subscription assets (35,734) (19,793) - (55,527) Equipment and furniture (1,079,881) (4,535) - (1,084,416) Total accumulated depreciation and amortization (22,171,560) (1,004,452) - (23,176,012) Total capital assets, being depreciated and amortized, net 25,197,316 (613,810) - 24,583,506 Total capital assets, net 29,918,742 $ (467,739) $ (90,046) $ 29,360,957 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-48-
NOTE 3 CAPITAL ASSETS, (Continued)
Depreciation/Amortization Expense
Depreciation/amortization expense was charged to City functions/programs as follows:
Governmental Activities:
General government 251,584 $
Parks, recreation, and library services 693,394 Police 682,485 Public works 7,834
Internal service fund depreciation charges
to programs 262,576
Allocated depreciation 1,897,873 Unallocated infrastructure depreciation 546,395 Total Depreciation expense 2,444,268
Unallocated lease/subscription amortization 945,321
Total depreciation and amortization expense -
governmental activities 3,389,589 $
Business-Type Activity:
Water 1,004,452 $
NOTE 4 DEFERRED INFLOWS OF RESOURCES
At June 30, 2025, deferred inflows of resources, reported in the governmental fund financial statements, consisted of the following:
Other Total
General Governmental Governmental
Fund Funds Funds
Unavailable lease revenue 21,598,532 $ - $ 21,598,532 $ Unavailable interest long-term
notes receivable 4,519,439 600 4,520,039 Total 26,117,971 $ 600 $ 26,118,571 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-49-
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 5,553,819 $
For further discussion of the receivable due from the Successor Agency, see Note 17E.
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, 2025 was $9,750,981 (including accrued interest of $2,204,454). The City also set up an allowance for doubtful accounts, on this loan of $8,154,454.
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, 2025, the City recognized $444,596 and $477,685 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.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-50-
NOTE 6 LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2025, was as follows:
Balance at Balance at Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Governmental activities:
Other debt:
2018 Library Lease Revenue Bonds 6,895,000 $ - $ (680,000) $ 6,215,000 $ 700,000 $ Plus 2018 Original Issue Premium 195,916 - (23,049) 172,867 23,049 Total Library Lease Revenue Bonds 7,090,916 - (703,049) 6,387,867 723,049 Other long-term liabilities:
Leases payable 13,068,961 244,080 (266,209) 13,046,832 292,902 Subscriptions payable 2,364,727 911,471 (765,001) 2,511,197 431,936 Compensated absences 864,084 351,114 - 1,215,198 607,599 Total Governmental-Type Activity 23,388,688 $ 1,506,665 $ (1,734,259) $ 23,161,094 $ 2,055,486 $ Business-Type activity:
Other debt:
2016 Water Revenue Refunding Bonds 1,075,000 $ - $ (530,000) $ 545,000 $ 545,000 $ Plus 2016 Original Issue Premium 71,576 - (52,055) 19,521 19,521 Total Refunding Bonds Payable 1,146,576 - (582,055) 564,521 564,521 Other long-term liabilities:
WRD loan - direct borrowing 1,360,465 - (139,535) 1,220,930 139,535 Subscriptions payable 146,852 - (16,271) 130,581 14,022 Compensated absences 54,844 - (36,995) 17,849 8,925 Total Business-Type Activity 2,708,737 $ - $ (774,856) $ 1,933,881 $ 727,003 $ 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, 2025, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
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 785,000 97,775 882,775
2031-2033 2,515,000 133,125 2,648,125 Total 6,215,000 $ 839,963 $ 7,054,963 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-51-
NOTE 6 LONG-TERM LIABILITIES, (Continued)
B) Leases Payable
The City leases land, improvements and equipment for various terms under various long-term, noncancelable lease agreements. The leases expire at various dates through December 31, 2056. The net present values of the leases payable were determined using a discount rates between 2.046%-3.663%. Monthly lease payments total range between $1,500-$22,233. 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
2026 292,902 $ 266,825 $ 559,727 $
2027 308,018 260,042 568,060
2028 315,854 253,035 568,889
2029 302,720 246,053 548,773
2030 306,605 239,473 546,078
2031-2035 1,596,518 1,099,832 2,696,350
2036-2040 1,877,955 922,890 2,800,845
2041-2045 2,207,743 714,522 2,922,265
2046-2050 2,575,145 470,515 3,045,660
2051-2055 2,974,661 187,301 3,161,962
2056-2057 288,711 1,597 290,308
Total 13,046,832 $ 4,662,085 $ 17,708,917 $
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
2026 431,936 $ 75,219 $ 507,155 $
2027 429,247 62,204 491,451
2028 368,948 49,172 418,120
2029 388,722 37,908 426,630
2030 408,884 26,054 434,938
2031-2033 483,460 15,248 498,708
Total 2,511,197 $ 265,805 $ 2,777,002 $
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-52-
NOTE 6 LONG-TERM LIABILITIES, (Continued)
C) Subscriptions Payable , (Continued)
Total future minimum subscription payments under business-type subscription agreements are as follows:
Year Ending
June 30, Principal Interest Total
2026 14,022 $ 2,736 $ 16,758 $
2027 14,846 2,427 17,273
2028 16,044 2,093 18,137
2029 17,311 1,732 19,043
2030 18,653 1,344 19,997
2031-2033 49,705 1,504 51,209
Total 130,581 $ 11,836 $ 142,417 $
D) Compensated Absences
There is no fixed payment schedule for earned (but unpaid) compensated absences in both the governmental and business type activities.
E) WRD Loan Payable
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, 2025 is $1,220,930. 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
2026 545,000 $ 10,900 $ 555,900 $
Total 545,000 $ 10,900 $ 555,900 $
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-53-
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
The composition of interfund balances as of June 30, 2025, is as follows:
Due From/To Other Funds
Receivable Fund Payable Fund Amount
General Fund Other governmental funds 228,922 $
$ 228,922
The interfund payable balances represent routine and temporary cash flow assistance from the General Fund until the amounts receivable from other governments are collected to reimburse eligible expenditures.
Advances To/From Other Funds
Advances receivable and payable balances at June 30, 2025, are as follows:
Receivable Fund Payable Fund Amount
General Fund Water Enterprise Fund 6,528,518 $
General Fund Housing Authority Special Revenue Fund 6,718 Other governmental funds Housing Authority Special Revenue Fund 1,589,809 $ 8,125,045 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 $6,718 to the General Fund, $838,605 to the Park Development Special Revenue Fund, $721,425 to the Water Development Special Revenue Fund, and $29,799 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 $1,805,000 for the purpose of financing the Gundry Reservoir Improvement Project.
In fiscal year 2024-25, the City entered into an interfund agreement with the Water Fund for $3,000,000 for the purpose of financing the Gundry Roof Replacement project.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-54-
NOTE 7 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS, (Continued) lnterfund Transfers
Transfer In to Fund Transfers Out of Fund Amount
General Fund Other governmental funds 240,946 $ (b)
Housing Authority
Special Revenue Fund General Fund 414,461 (c)
Capital Improvement
Capital Projects Fund General Fund 3,975,243 (a)
California Arts Council Grants Special Revenue Fund 349,025 (a) Other governmental funds 2,310,217 (a)
Water Enterprise Fund General Fund 42,491 (a)
Internal Service Fund General Fund 81,000 (d)
Other governmental funds 50,000 (e)
Total 7,463,383 $
(b) To provide funds for ongoing city programs.
The purposes for significant interfund transfers made during the fiscal year ended June 30, 2025 were as follows:
(a) To provide funds for various capital projects in accordance with the City's capital improvement program. (d) To transfer surplus from reserves.
(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.
(e) To provide funds to the Vehicle and Equipment Internal Service Fund for the purchase of a vehicle.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-55-
NOTE 8 INDIVIDUAL FUND DISCLOSURES
Expenditures Exceeding Appropriations
For the year ended June 30, 2025, expenditures exceeded appropriations in the following programs (the legal level of budgetary control):
Special revenue fund
Supplemental Law Enforcement 8,504 $
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.
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
For the Year Ended June 30, 2025
-56-
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 12.520% 10.710% 7.870%
Payment of Unfunded Liability 1,541,948 $ 45,208 $ 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 29.300% 26.290% 14.720%
Payment of Unfunded Liability 1,971,199 $ 20,079 $ 43,387 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-57-
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. Employer contributions to the Plan for the fiscal year ended June 30, 2025 were $5,019,403 ($2,234,808 for the miscellaneous plan and $2,784,595 for the 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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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, 2024 measurement period was determined by an actuarial valuation as of June 30, 2023, with update procedures used to roll forward the total pension liability to June 30, 2024. The collective total pension liability was based on the following assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry Age Actuarial Cost Method
Asset Valuation Method Fair Value of Assets
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 Contract COLA up to 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-58-
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 2021-22 Asset Liability Management study. 1 An expected inflation of 2.30% used for this period.
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.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-59-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
B) Net Pension Liability, (Continued)
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.
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 17,231,934 $
Safety 21,511,011 Total Net Pension Liability 38,742,945 $ 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, 2023 and 2024 measurement dates were as follows:
Miscellaneous Safety Total
Proportion - June 30, 2023 0.34817% 0.29716% 0.31761%
Proportion - June 30, 2024 0.35628% 0.29504% 0.31947%
Change - Increase (Decrease) 0.00811% -0.00212% 0.00599% City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-60-
NOTE 9 DEFINED BENEFIT PENSION PLANS, (Continued)
C) Proportionate Share of Net Pension Liability (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability 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 25,784,485 $ 31,619,660 $ 57,404,145 $ Current Discount Rate 6.90% 6.90%
Net Pension Liability 17,231,934 $ 21,511,011 $ 38,742,945 $ 1% Increase 7.90% 7.90%
Net Pension Liability 10,191,925 $ 13,243,558 $ 23,435,483 $ Amortization of Deferred Outflows and Deferred Inflows of Resources 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
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-61-
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, 2023), the City’s net pension liability was $39,622,724. For the measurement period ending June 30, 2024 (the measurement date), the City incurred a pension expense of $7,172,699.
As of June 30, 2025, 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 5,019,403 $ - $ Differences between expected and actual experience 3,245,348 (115,212) Changes in assumptions 972,884 - Change in employer's proportion 190,691 (588,674) Differences between the employer's contributions and the Employer's proportionate share of contributions 492,253 (511,375) Net differences between projected and actual
earnings on Plan investments 2,031,766 - Total 11,952,345 $ (1,215,261) $ The amounts above are net of outflows and inflows recognized in the 2023-24 measurement period expense. Contributions subsequent to the measurement date of $5,019,403 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
2026 1,949,429 $
2027 4,504,881 2028 (40,922) 2029 (695,707) 2030 - Thereafter - E) Payable to the Pension Plan
At June 30, 2025, the City had no outstanding amount of contributions to the pension plan required for the year then ended.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-62-
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 $158 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 $158 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
For the Year Ended June 30, 2025
-63-
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, 2025:
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, 2025, the measurement period, the City contributed $979,575 (retirement premiums paid on a pay-as-you-go basis of $694,903, contributions to the OPEB trust of $91,773, and an estimated implicit rate subsidy of $192,899) and City employees contributed $81,758 to the OPEB trust.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-64-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) D) Net OPEB Liability
Actuarial Assumptions
For the measurement period ended June 30, 2025 (the measurement date), the total OPEB liability was determined by an actuarial accounting valuation performed as of June 30, 2023. The June 30, 2025 net OPEB liability was based on the following actuarial methods and assumptions:
Inflation 2.30%
Salary Increase 2.80%
Investment Rate of Return 7.25%
Healthcare Cost Trend Rates Assumed 6.8% 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
For the Year Ended June 30, 2025
-65-
NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN, (Continued) D) Net OPEB Liability, (Continued)
Changes in Assumptions
For the measurement period ended June 30, 2025, the changes in assumptions were made related to an increase in the discount rate to 7.25%.
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
US equity 39.0% 7.10%
International equity 21.0% 3.50%
US aggregate bonds 40.0% 2.70%
Total 100.0% 7.25%
Discount Rate
The discount rate used to measure the total OPEB liability was 7.25%. 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 net OPEB liability.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-66-
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, 2024 12,950,009 $ 4,421,182 $ 8,528,827 $ Changes in the Fiscal Year:
Service Cost 320,998 - 320,998
Interest on the total OPEB liability 737,723 - 737,723
Changes of assumptions (1,730,212) - (1,730,212) Difference between expected and actual experience (5,875) - (5,875) Contribution from the employer - 965,072 (965,072) Contribution from the employees - 81,758 (81,758) Net investment income - 551,752 (551,752) Benefit payments (689,194) (689,194) - Implicit Subsidy Credit (192,899) (192,899) - Administrative expenses - (12,620) 12,620 Net Changes (1,559,459) 703,869 (2,263,328) Balance at June 30, 2025 11,390,550 $ 5,125,051 $ 6,265,499 $ The plan’s total OPEB liability is funded 44.99% (fiduciary net position/total OPEB liability).
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
6.25% 7.25% 8.25%
Net OPEB liability 7,373,921 $ 6,265,499 $ 5,310,482 $
Health-Care
Cost
1% Decrease Trend Rate 1% Increase
5.80% 6.80% 7.80%
Net OPEB liability 5,613,142 $ 6,265,499 $ 6,880,186 $
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-67-
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, 2025, the City recognized OPEB expense of $363,947. At June 30, 2025, 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 257,997 $ (539,101) $ Changes of assumptions 1,254,348 (1,973,276) Net differences between projected and actual earnings on Plan investments - (346,139) Total 1,512,345 $ (2,858,516) $ 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
2026 (259,035) $
2027 (343,363) 2028 (179,291)
2029 (200,893)
2029 (255,086)
Thereafter (108,503)
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 $8,444 were made to these plans during the current fiscal year.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-68-
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 $66,029 for the fiscal year ended June 30, 2025. 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
For the Year Ended June 30, 2025
-69-
NOTE 13 GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The various fund balance classifications as of June 30, 2025 were as follows:
Housing California Capital
Authority Arts Council 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 $ 1,034,380 $ - $ - $ - $ - Prepaid items 105,123 - - - - Leases receivable, net of unavailable revenues 1,885,360 - - - - Advances to other funds 6,535,236 - - - - Land and improvements held for resale, net 425,001 - - - - Total 9,985,100 - - - - Restricted for:
Low and moderate
income housing - 7,993,469 - - - Public protection - - - - 27,950 Development impact - - - - 3,129,034
Transportation - - - - 5,366,169
Capital improvements - - 532,580 400,002 2,814,071
Total - 7,993,469 532,580 400,002 11,337,224
Committed for:
Debt service 2,989,270 - - - - Economic uncertainty 5,813,093 - - - - Building and land acquisition 1,420,551 - - - - Equipment replacement 193,748 - - - - Capital improvements 5,525,703 - - - - Insurance premium increases 1,000,000 - - - - CalPERS rate increases 3,423,009 - - - - OPEB future costs 1,521,444 - - - - Park expansion 1,141,121 - - - - Police radio/system reserve 1,476,256 - - - - Civic center master plan 14,023,229 - - - - General Plan update 215,257 - - - - Economic development 1,183,150 - - - - Workforce Innovation 1,228,041 - - - - Facility reserve 651,450 - - - - Art reserve 350,000 - - - - NPDES issues 1,456 - - - - Total 42,156,778 - - - - Unassigned 30,711,546 - - - - Total $ 82,853,424 $ 7,993,469 $ 532,580 $ 400,002 $ 11,337,224 City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-70-
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. 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
For the Year Ended June 30, 2025
-71-
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 2024-25 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 $105,811,736. 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 $67,633,594. 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 $2,000,000 with a $10,000 deductible. The fidelity coverage is provided through the Insurance Authority.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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 2024-25.
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 2024-25, 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 2024-25, the City expended $511,272 in parks development fees, $108,174 in traffic impact fees and $0 in water development fees. At June 30, 2025, the fund balances for the Parks Development Impact Fund was $277,667, for the Traffic Impact Fund was $921,513 and for the Water Development Impact Fund was $1,161,067.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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, 2025, the City abated local sales tax totaling $2,311,659.
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, 2025 was as follows:
Balance at Balance at
June 30, 2024 Additions Deletions June 30, 2025
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, 2025 was as follows:
Balance at Balance at Due Within
June 30, 2024 Additions Deletions June 30, 2025 One Year Other debt:
Bonds payable:
2006 TABs 9,610,000 $ - $ (3,025,000) $ 6,585,000 $ 3,195,000 $ 2011 Tax Allocation Parity Bonds 2,170,000 - (675,000) 1,495,000 725,000 2015 Refunding TABs Series B 1,010,000 - (1,010,000) - - 2017 Refunding TABs 7,730,000 - (1,920,000) 5,810,000 2,840,000 Less Original Issuance Discounts (27,095) - 12,426 (14,669) (11,735) Add Premium on Bonds 653,350 - (290,378) 362,972 72,595 Total Bonds Payable 21,146,255 - (6,907,952) 14,238,303 6,820,860 Direct borrowings:
Loan payable to the City of
Signal Hill 7,409,966 - (1,856,147) 5,553,819 - Total Long-Term Liabilities 28,556,221 $ - $ (8,764,099) $ 19,792,122 $ 6,820,860 $ City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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, 2025, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
2026 3,195,000 $ 291,220 $ 3,486,220 $
2027 3,390,000 98,971 3,488,971 Totals 6,585,000 $ 390,191 $ 6,975,191 $ 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, 2025, this reserve requirement was met.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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, 2025, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
2026 725,000 $ 79,275 $ 804,275 $
2027 770,000 26,950 796,950 Totals 1,495,000 $ 106,225 $ 1,601,225 $ C) 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 bond was paid in full in fiscal year 2025.
D) 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.
City of Signal Hill
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
D) 2017 Refunding Tax Allocation Bonds (Continued)
Principal amounts on the 2017 Bonds mature annually each October 1 from 2018 through 2026, and bear interest semiannually beginning April 1, 2018 at rates ranging from 3.00% to 5.00%.
The 2017 Bonds are not subject to optional redemption before maturity.
The reserve requirement for these bonds is covered by a surety bond provided by National Public Finance Guarantee Corp. (National). National's current ratings by Moody's Investors Services and Standard & Poor's are Baa2 and BBB, respectively.
The annual requirements to amortize outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:
Year Ending
June 30, Principal Interest Total
2026 2,840,000 $ 212,500 $ 3,052,500 $
2027 2,970,000 74,250 3,044,250 Totals 5,810,000 $ 286,750 $ 6,096,750 $ E) 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, 2025, including $4,414,609 of accrued interest, is $5,553,819.
F) 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
For the Year Ended June 30, 2025
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NOTE 17 SUCCESSOR AGENCY DISCLOSURES, (Continued)
G) 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, 2025, there was $1,035,532 due under this agreement, which is reported as a current liability.
NOTE 18 PRIOR PERIOD RESTATEMENT
During fiscal year 2025, the Capital Grants Special Revenue Fund was reclassified from a major fund to a non-major fund. This reclassification represents a change within the financial reporting entity. In addition, a correction of an error was made to the General Fund related to prior-year activity. The impact of these restatements on beginning fund balances and net position is presented in the table below.
Capital Grants Other
Governmental Special Revenue Governmental
Activities General Fund Funds
Fund Balances, Beginning, as Previously Reported 154,498,110 $ 75,672,151 $ (142,000) $ 11,262,011 $ Change within the financial reporting entity - - 142,000 (142,000) Correction of an error 142,254 142,254 - - Fund Balances, Beginning, as Restated 154,640,364 $ 75,814,405 $ - $ 11,120,011 $
REQUIRED SUPPLEMENTARY INFORMATION
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City of Signal Hill
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2025
-78-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Property taxes 2,603,747 $ 2,603,747 $ 3,017,939 $ 414,192 $ Sales and use tax 27,078,496 27,078,496 28,312,131 1,233,635 Other taxes 1,920,175 1,920,175 2,067,069 146,894 Licenses and permits 805,755 805,755 894,544 88,789 Intergovernmental revenues 108,250 68,250 76,140 7,890 Charges for services 1,640,150 1,690,450 2,484,840 794,390 Fines and forfeitures 110,000 110,000 135,682 25,682 Investment income (loss) 2,644,752 2,644,752 4,607,234 1,962,482 Other revenue 422,031 422,031 1,173,430 751,399 Total Revenues 37,333,356 37,343,656 42,769,009 5,425,353 EXPENDITURES General government:
City Council 307,311 310,311 283,881 26,430 City Treasurer 8,675 8,675 5,793 2,882 City Clerk 324,096 324,096 208,750 115,346 Economic development 217,576 249,576 533,534 (283,958) Executive administration 1,228,208 1,368,208 1,209,984 158,224 Communication/ public relations 289,544 304,544 207,370 97,174 Personnel services 822,414 832,414 658,980 173,434 Support services 2,178,979 2,178,979 2,062,346 116,633
Management information services 353,902 375,022 211,665 163,357 Fiscal services 1,304,081 1,304,081 1,254,045 50,036 Total General Government 7,034,786 7,255,906 6,636,348 619,558 Parks, recreation, and library services:
Library programs and services 798,824 872,824 768,077 104,747 Community support and services 1,392,942 1,467,885 1,375,587 92,298 Recreation 996,290 1,045,020 823,709 221,311 Total Parks, Recreation, and Library Services 3,188,056 3,385,729 2,967,373 418,356 Police:
Community outreach 78,407 110,907 47,411 63,496 Patrol services 7,309,656 7,334,656 6,564,554 770,102 Investigative services 1,760,990 1,760,990 1,534,873 226,117 Police support services 2,624,332 2,670,448 2,274,062 396,386 Communications 1,451,691 1,451,691 1,052,652 399,039
Records 538,229 538,229 473,836 64,393 Emergency and disaster services 184,988 222,788 213,135 9,653 Total Police 13,948,293 14,089,709 12,160,523 1,929,186 City of Signal Hill
Budgetary Comparison Schedule, (Continued)
General Fund
For the Year Ended June 30, 2025
-79-
Budgeted Amounts Variance with
Original Final Actual Final Budget
EXPENDITURES (Continued)
Community development:
Planning services 585,817 $ 755,817 $ 576,861 $ 178,956 $ Neighborhood enhancement 262,004 284,004 282,597 1,407 Building and safety 344,449 465,449 291,568 173,881 Oil field services 197,077 197,077 190,275 6,802 Total Community Development 1,389,347 1,702,347 1,341,301 361,046 Public works:
Engineering and project services 1,134,968 1,134,968 833,760 301,208 Building maintenance 1,307,664 1,307,664 1,226,748 80,916 Environmental programs 1,028,337 1,023,837 836,075 187,762 Park maintenance 1,526,880 1,553,880 1,304,650 249,230 Street maintenance operations 1,961,616 1,969,116 1,719,187 249,929 Total Public Works 6,959,465 6,989,465 5,920,420 1,069,045 Capital outlay 1,639,132 1,781,083 1,393,418 387,665 Debt service 1,691,459 1,691,459 2,190,434 (498,975) Total Expenditures 35,850,538 36,895,698 32,609,817 4,285,881 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,482,818 447,958 10,159,192 9,711,234 OTHER FINANCING SOURCES (USES) Subscription acquisition 907,996 907,996 907,996 - Lease acquisition 244,080 244,080 244,080 - Transfers in 499,354 588,454 240,946 (347,508) Transfers out (5,640,512) (8,840,949) (4,513,195) 4,327,754 Total Other Financing Sources (Uses) (3,989,082) (7,100,419) (3,120,173) 3,980,246 Net Change in Fund Balance (2,506,264) (6,652,461) 7,039,019 13,691,480 Fund Balance, Beginning 75,814,405 75,814,405 75,814,405 - Fund Balance, Ending $ 69,161,944 73,308,141 $ 82,853,424 $ 13,691,480 $ City of Signal Hill
Budgetary Comparison Schedule
Housing Authority Special Revenue Fund
For the Year Ended June 30, 2025
-80-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Investment income 163,227 $ 163,227 $ 374,025 $ 210,798 $ Total Revenues 163,227 163,227 374,025 210,798 EXPENDITURES General government 7,000 14,500 9,894 4,606 Total Expenditures 7,000 14,500 9,894 4,606 Excess of Revenues Over
Expenditures 156,227 148,727 364,131 215,404 OTHER FINANCING SOURCES (USES) Transfers in 420,000 420,000 414,461 (5,539) Total Other Financing Sources (Uses) 420,000 420,000 414,461 (5,539) Net Change in Fund Balance 576,227 568,727 778,592 209,865 Fund Balance, Beginning 7,214,877 7,214,877 7,214,877 - Fund Balance, Ending $ 7,783,604 7,791,104 $ 7,993,469 $ 209,865 $ City of Signal Hill
Budgetary Comparison Schedule
California Arts Council Grant Special Revenue Fund
For the Year Ended June 30, 2025
-81-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues - $ - $ 349,025 $ 349,025 $
Investment income - - 532,580 532,580 Total Revenues - - 881,605 881,605
EXPENDITURES
Total Expenditures - - - - Excess of Revenues Over
Expenditures - - 881,605 881,605 OTHER FINANCING SOURCES (USES) Transfers out - (5,000,000) (349,025) 4,650,975 Total Other Financing Sources (Uses) - (5,000,000) (349,025) 4,650,975 Net Change in Fund Balance - (5,000,000) 532,580 5,532,580 Fund Balance, Beginning - - - - Fund Balance, Ending $ (5,000,000) - $ 532,580 $ 5,532,580 $ City of Signal Hill
Notes to Required Supplementary Information
For the Year Ended June 30, 2025
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NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1) The annual budget is adopted by the City Council after a public hearing and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them.
2) Budgets for the General and Special Revenue Funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America.
Accordingly, actual revenues and expenditures can be compared with related budget amounts without any significant reconciling items. No budgetary comparisons are presented for the Capital Projects Funds since budgets are adopted on a project basis as opposed to an annual basis. No budgets were adopted for the Assets Seizure, the Civic Center Phase II, Prop. 68 – Park and Recreation, Measure A and Public Safety Grant 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 Last Ten Fiscal Years
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Measurement Period
Plan's Proportion of the Net Pension Liability1
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, 2015 0.12534% 20,237,038 $ 7,267,434 $ 278.46% 78.40% 2,414,463 $ June 30, 2016 0.29200% 25,267,366 7,889,777 320.25% 74.06% 2,477,227 June 30, 2017 0.28684% 28,446,490 8,179,900 347.76% 73.31% 2,707,799 June 30, 2018 0.28819% 27,770,375 7,499,746 370.28% 75.26% 3,193,125 June 30, 2019 0.28706% 29,415,004 8,243,541 356.82% 75.26% 3,501,935 June 30, 2020 0.29246% 31,821,214 8,362,674 380.51% 75.10% 4,072,244 June 30, 2021 0.35988% 19,463,557 8,280,004 235.07% 88.29% 4,687,512 June 30, 2022 0.31997% 36,959,054 8,895,061 415.50% 76.68% 5,401,724 June 30, 2023 0.31761% 39,622,724 8,778,498 451.36% 76.21% 3,811,164 June 30, 2024 0.31947% 38,742,945 8,914,165 434.62% 78.08% 3,700,157 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
Last Ten Fiscal Years
-84-
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, 2015 0.16949% 11,633,599 $ 3,095,462 $ 375.83% 78.40% 1,244,854 $ June 30, 2016 0.27528% 14,257,433 3,120,311 456.92% 74.06% 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% 75.10% 2,261,312 June 30, 2021 0.32940% 11,560,225 3,480,836 332.11% 88.29% 2,759,489 June 30, 2022 0.30084% 20,672,704 3,694,080 559.62% 76.68% 3,128,829 June 30, 2023 0.29716% 22,212,532 3,296,621 685.38% 76.21% 1,938,887 June 30, 2024 0.29504% 21,511,011 3,240,924 663.73% 78.08% 1,938,674 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 Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years
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Fiscal Year End 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Measurement Date 6/30/2025 6/30/2024 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 Total OPEB liability:
Service cost 320,998 $ 312,255 $ 220,191 $ 293,500 $ 270,003 $ 78,454 $ 76,354 $ 88,947 $ 86,566 $ 84,249 $ Interest on total OPEB liability 737,723 723,750 701,238 819,177 814,641 693,993 689,655 724,953 719,524 732,333 Changes of assumptions (1,730,212) (208,684) (333,930) (494,340) 350,078 3,078,833 - - - - Experience gains/(losses) (5,875) 286,867 - (1,239,101) - 171,290 - (633,287) - - Investment gains/(losses) - - - - - - 5,035 (5,035) - - Benefit payments, including refunds
and the implied subsidy benefit payments (882,093) (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 (1,559,459) 236,434 (219,515) (1,419,194) 385,145 2,982,052 65,392 (553,489) 87,644 118,886 Total OPEB Liability, Beginning of Year 12,950,009 12,713,575 12,933,090 14,352,284 13,967,139 10,985,087 10,919,695 11,473,184 11,385,540 11,266,654 Total OPEB Liability, End of Year (a) 12,950,009 11,390,550 12,713,575 12,933,090 14,352,284 13,967,139 10,985,087 10,919,695 11,473,184 11,385,540 Plan fiduciary net position:
Contributions - employer 965,072 952,755 880,746 872,192 1,184,870 1,251,150 705,652 729,067 718,446 847,696 Contributions - employees 81,758 73,997 69,558 70,110 65,478 336,878 - - - - Net investment income (loss) 551,752 539,305 337,516 (496,520) 642,090 186,488 135,298 125,181 154,005 (31,941) Administrative expenses (12,620) (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 (882,093) (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) - - - - (2) - - - Net Change in Plan Fiduciary Net Position 703,869 674,612 469,913 (357,143) 824,292 718,800 123,092 113,270 142,898 114,241 Plan Fiduciary Net Position,- Beginning of Year 4,421,182 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) 4,421,182 5,125,051 3,746,570 3,276,657 3,633,800 2,809,508 2,090,708 1,967,616 1,854,346 1,711,448 Net OPEB Liability- Ending (a}-(b) 6,265,499 $ 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 44.99% 34.14% 29.47% 25.34% 25.32% 20.12% 19.03% 18.02% 16.16% 15.03% Covered - employee payroll 10,224,362 $ 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 61.28% 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%.
FYE June 30, 2025 - Discount rate was increased due to investment policy change to 7.25%.
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.
City of Signal Hill
Schedule of OPEB plan Contributions
Last Ten Fiscal Years
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Fiscal Year Ended
Contractually
Required
Contribution
(Actuarially
Determined)
Contributions in
Relation to the
Actuarially
Determined
Contributions
Contribution
Deficiency
(excess) Covered Payroll
Contributions as a
Percentage of
Covered Payroll
June 30, 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 2,504,683 (2,504,683) - 3,240,924 77.28%
June 30, 2025 979,575 (965,072) 14,503 10,224,362 9.44% Notes to Schedule:
Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2023, valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.
Changes in Assumptions: There were no assumption changes in 2023 or 2024. 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 long-term 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, and 7.65% for measurement dates June 30, 2015, through June 30, 2016.
SUPPLEMENTARY INFORMATION
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City of Signal Hill
Non-Major Governmental Funds
Special Revenue Funds
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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.
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.
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.
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City of Signal Hill
Non-Major Governmental Funds
Special Revenue Funds, (Continued)
-88-
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.
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.
Measure A Fund – Measure A was drafted to meet current and future park needs, and its content reflects the findings based on the City's Master Plan. Generating more than $90 million per year for the county's local parks, beaches, and open space areas, Measure A is an annual parcel tax of 1.5 cents per square foot of improved property and includes both formula-based allocations to Study Areas and competitive grants that are open to public agencies, non-profit organizations, and schools.
Public Safety Grant Fund – Accounts for various grants to enhance public safety.
Capital Grants – Accounts 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.
City of Signal Hill
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
-89-
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A
ASSETS
Cash and investments 27,950 $ 300,865 $ 6,522 $ 2,042,093 $ 1,072,617 $ Receivables:
Interest receivable - - 600 - - Due from other governments - - 436 28,103 - Loans - - 6,038 - - Advances to other funds - 838,605 - - - Restricted assets:
Cash and investments - - - - - Total assets 27,950 $ 1,139,470 $ 13,596 $ 2,070,196 $ 1,072,617 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ - $ - $ 75,259 $
Accrued liabilities - - - - 2,953 Unearned revenues - 861,803 - - - Due to other funds - - - - - Total liabilities - 861,803 - - 78,212 Deferred inflows of resources:
Unavailable revenues - - 600 - - Total deferred inflows of resources - - 600 - - Fund balances:
Restricted for:
Public protection 27,950 - - - - Development impact - 277,667 - - Transportation - - - 2,070,196 994,405 Capital improvements - - 12,996 - - Total fund balances 27,950 277,667 12,996 2,070,196 994,405 Total liabilities, deferred inflows of resources and fund balances 27,950 $ 1,139,470 $ 13,596 $ 2,070,196 $ 1,072,617 $ Special Revenue Funds
-90-
Air Lighting
Pipeline Quality Water Traffic Transportation and
Removal Improvement Development Impact Proposition C Landscape $ 37,783 2,462,876 $ 1,121,023 $ 922,336 $ 602,252 $ 109,655 $ - - - - - -
3,985 - - - - 1,398
- - - - - -
- - 721,425 29,779 - -
- - - - - - $ 41,768 2,462,876 $ 1,842,448 $ 952,115 $ 602,252 $ 111,053 $ $ - - $ - $ - $ - $ 8,847 $
- - - - - 901
- - 741,381 30,602 - -
- - - - - -
- - 741,381 30,602 - 9,748
- - - - - -
- - - - - -
- - - - - -
- - 1,101,067 921,513 - -
41,768 - - - 602,252 -
- 2,462,876 - - - 101,305
41,768 2,462,876 1,101,067 921,513 602,252 101,305 $ 41,768 2,462,876 $ 1,842,448 $ 952,115 $ 602,252 $ 111,053 $ Special Revenue Funds
City of Signal Hill
Combining Balance Sheet, (Continued)
Non-Major Governmental Funds
June 30, 2025
-91-
Supplemental Public
Law Safety State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M
ASSETS
Cash and investments 4,493 $ - $ 828,787 $ 28,024 $ 545,359 $ Receivables:
Interest receivable - - - - - Due from other governments - 9,032 - - - Loans - - - - - Advances to other funds - - - - - Restricted assets:
Cash and investments - - - - - Total assets 4,493 $ 9,032 $ 828,787 $ 28,024 $ 545,359 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - $ 110 $ - $ - $ - $
Accrued liabilities 4,493 - - - - Unearned revenues - - - - - Due to other funds - 8,922 - - - Total liabilities 4,493 9,032 - - - Deferred inflows of resources:
Unavailable revenues - - - - - Total deferred inflows of resources - - - - - Fund balances:
Restricted for:
Public protection - - - - - Development impact - - 828,787 - - Transportation - - - 28,024 545,359 Capital improvements - - - - - Total fund balances - - 828,787 28,024 545,359 Total liabilities, deferred inflows of resources and fund balances 4,493 $ 9,032 $ 828,787 $ 28,024 $ 545,359 $ Special Revenue Funds
-92-
Prop 68 -
Transportation Civic Center Parks and
Measure R RMRA (SB1) Measure W Phase II Recreation
$ 942,713 84,904 $ 236,830 $ - $ 55 $
- - - - -
56,548 - - - -
- - - - -
- - - - -
- - - 9 - $ 999,261 84,904 $ 236,830 $ 9 $ 55 $
$ - - $ - $ - $ - $
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
999,261 84,904 - - -
- - 236,830 9 55
999,261 84,904 236,830 9 55 $ 999,261 84,904 $ 236,830 $ 9 $ 55 $ Special Revenue Funds
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City of Signal Hill
Combining Balance Sheet, (Concluded)
Non-Major Governmental Funds
June 30, 2025
-93-
Total
Non-major
Measure A Public Safety (Previously major) Governmental Fund Grant Fund Capital Grants Funds
ASSETS
Cash and investments - $ - $ 105,453 $ 11,482,590 $
Receivables:
Interest receivable - - - 600 Due from other governments 220,000 - 140,179 459,681 Loans - - - 6,038 Advances to other funds - - - 1,589,809 Restricted assets:
Cash and investments - - - 9 Total assets 220,000 $ - $ 245,632 $ 13,538,727 $
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ - $ 84,216 $
Accrued liabilities - - - 8,347 Unearned revenues - - 245,632 1,879,418 Due to other funds 220,000 - - 228,922 Total liabilities 220,000 - 245,632 2,200,903 Deferred inflows of resources:
Unavailable revenues - - - 600 Total deferred inflows of resources - - - 600 Fund balances:
Restricted for:
Public protection - - - 27,950 Development impact - - - 3,129,034 Transportation - - - 5,366,169 Capital improvements - - - 2,814,071
Total fund balances - - - 11,337,224 Total liabilities, deferred inflows of resources and fund balances 220,000 $ - $ 245,632 $ 13,538,727 $ Special Revenue Funds
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2025
-94-
Special Revenue Funds
Asset Park HCDA Special Transportation
Seizure Development Grant Gas Tax Proposition A
REVENUES
Other taxes - $ - $ - $ - $ - $
Intergovernmental revenues 4,417 - 158,149 299,054 299,935 Charges for services - - - - 33 Investment income - 36,939 - 90,264 51,333 Total revenues 4,417 36,939 158,149 389,318 351,301 EXPENDITURES Current:
Police - - - - - Community development - - 11,212 - 358,157 Public works - - - - - Total expenditures - - 11,212 - 358,157 Excess of revenues over (under) expenditures 4,417 36,939 146,937 389,318 (6,856) OTHER FINANCING SOURCES (USES) Transfers out - (511,272) (139,978) - - Total other financing sources (uses) - (511,272) (139,978) - - Net change in fund balances 4,417 (474,333) 6,959 389,318 (6,856) Fund balance (deficit), beginning, as previously reported 23,533 752,000 6,037 1,680,878 1,001,261 Restatement - change from major to non-major - - - - - Fund balance (deficit), beginning, as restated 23,533 752,000 6,037 1,680,878 1,001,261 Fund balance, ending $ 277,667 27,950 $ 12,996 $ 2,070,196 $ 994,405 $ -95-
Special Revenue Funds
Air Lighting
Pipeline Quality Water Traffic Transportation and
Removal Improvement Development Impact Proposition C Landscape $ - - $ - $ - $ - $ 102,466 $
15,259 - - - 248,788 -
- - - - - -
3,633 119,828 53,867 49,154 36,737 4,268
18,892 119,828 53,867 49,154 285,525 106,734
- - - - - -
- - - - - -
- - - - - 81,754
- - - - - 81,754
18,892 119,828 53,867 49,154 285,525 24,980
(50,000) (37,954) - (108,174) (299,940) -
(50,000) (37,954) - (108,174) (299,940) -
(31,108) 81,874 53,867 (59,020) (14,415) 24,980
72,876 2,381,002 1,047,200 980,533 616,667 76,325
- - - - - -
72,876 2,381,002 1,047,200 980,533 616,667 76,325 $ 41,768 2,462,876 $ 1,101,067 $ 921,513 $ 602,252 $ 101,305 $ City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, (Continued)
For the Year Ended June 30, 2025
-96-
Special Revenue Funds
Supplemental Public
Law Safety State Housing MTA-STPL
Enforcement Resources Impact Grant Measure M
REVENUES
Other taxes - $ - $ - $ - $ - $
Intergovernmental revenues 194,663 70,770 - - 211,362 Charges for services - - - - - Investment income - - 39,884 - 35,076 Total revenues 194,663 70,770 39,884 - 246,438 EXPENDITURES Current:
Police 194,663 70,770 - - - Community development - - - - - Public works - - - - - Total expenditures 194,663 70,770 - - - Excess of revenues over (under) expenditures - - 39,884 - 246,438 OTHER FINANCING SOURCES (USES) Transfers out - - - (141,451) (309,512) Total other financing sources (uses) - - - (141,451) (309,512) Net change in fund balances - - 39,884 (141,451) (63,074) Fund balance (deficit), beginning, as previously reported - - 788,903 169,475 608,433 Restatement - change from major to non-major - - - - - Fund balance (deficit), beginning, as restated - - 788,903 169,475 608,433 Fund balance, ending $ - - $ 828,787 $ 28,024 $ 545,359 $ -97-
Prop 68 -
Transportation Civic Center Parks and
Measure R RMRA (SB1) Measure W Phase II Recreation
$ - - $ 271,815 $ - $ - $
320,892 186,557 - - -
- - - - -
40,878 9,396 22,780 - -
361,770 195,953 294,595 - -
- - - - -
- - - - -
- - - - -
- - - - -
361,770 195,953 294,595 - -
(30,595) (221,527) (381,602) - -
(30,595) (221,527) (381,602) - -
331,175 (25,574) (87,007) - -
668,086 110,478 323,837 9 55
- - - - -
668,086 110,478 323,837 9 55 $ 999,261 84,904 $ 236,830 $ 9 $ 55 $ Special Revenue Funds
City of Signal Hill
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, (Concluded)
For the Year Ended June 30, 2025
-98-
Total
Non-major
Measure A Public Safety (Previously major) Governmental Fund Grant Fund Capital Grants Funds
REVENUES
Other taxes 220,000 $ - $ - $ 594,281 $
Intergovernmental revenues - 45,577 291,158 2,346,581 Charges for services - - - 33 Investment income - - - 594,037 Total revenues 220,000 45,577 291,158 3,534,932 EXPENDITURES Current:
Police - - - 265,433 Community development - - - 369,369 Public works - - - 81,754 Total expenditures - - - 716,556 Excess of revenues over (under) expenditures 220,000 45,577 291,158 2,818,376 OTHER FINANCING SOURCES (USES) Transfers out (220,000) - (149,158) (2,601,163) Total other financing sources (uses) (220,000) - (149,158) (2,601,163) Net change in fund balances - 45,577 142,000 217,213 Fund balance (deficit), beginning, as previously reported - (45,577) - 11,262,011 Restatement - change from major to non-major - - (142,000) (142,000) Fund balance (deficit), beginning, as restated - (45,577) (142,000) 11,120,011 Fund balance, ending $ - - $ - $ 11,337,224 $ 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, 2025
-99-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Charges for services 25,542 $ 25,542 $ - $ (25,542) $
Investment income 2,667 2,667 36,939 34,272 Total Revenues 28,209 28,209 36,939 8,730 OTHER FINANCING SOURCES (USES) Transfers out (30,000) (30,000) (511,272) (481,272) Total Other Financing Sources (Uses) (30,000) (30,000) (511,272) (481,272) Net Change in Fund Balance (1,791) (1,791) (474,333) (472,542) Fund Balance, Beginning 752,000 752,000 752,000 - Fund Balance, Ending $ 750,209 750,209 $ 277,667 $ (472,542) $ 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, 2025
-100-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 83,560 $ 83,560 $ 158,149 $ 74,589 $ Total Revenues 83,560 83,560 158,149 74,589 EXPENDITURES Current:
Community development 12,534 12,534 11,212 1,322 Total Expenditures 12,534 12,534 11,212 1,322 Excess of Revenues Over (Under)
Expenditures 71,026 71,026 146,937 75,911 OTHER FINANCING SOURCES (USES) Transfers out (71,026) (71,026) (139,978) (68,952) Total Other Financing Sources (Uses) (71,026) (71,026) (139,978) (68,952) Net Change in Fund Balance - - 6,959 6,959 Fund Balance, Beginning 6,037 6,037 6,037 - Fund Balance, Ending $ 6,037 6,037 $ 12,996 $ 6,959 $ 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, 2025
-101-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 326,189 $ 326,189 $ 299,054 $ (27,135) $ Investment income 32,172 32,172 90,264 58,092 Total Revenues 358,361 358,361 389,318 30,957
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 108,361 108,361 389,318 280,957 Fund Balance, Beginning 1,680,878 1,680,878 1,680,878 - Fund Balance, Ending $ 1,789,239 1,789,239 $ 2,070,196 $ 280,957 $ 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, 2025
-102-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 321,516 $ 321,516 $ 299,935 $ (21,581) $ Charges for services - - 33 33
Investment income 22,781 22,781 51,333 28,552 Total Revenues 344,297 344,297 351,301 7,004 EXPENDITURES Current:
Community development 274,745 376,663 358,157 18,506 Total Expenditures 274,745 376,663 358,157 18,506 Net Change in Fund Balance 69,552 (32,366) (6,856) 25,510 Fund Balance, Beginning 1,001,261 1,001,261 1,001,261 - Fund Balance, Ending $ 968,895 1,070,813 $ 994,405 $ 25,510 $ 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, 2025
-103-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Investment income 53,646 $ 53,646 $ 119,828 $ 66,182 $
Total Revenues 53,646 53,646 119,828 66,182 OTHER FINANCING SOURCES (USES) Transfers out (57,409) (57,409) (37,954) 19,455 Net Change in Fund Balance (3,763) (3,763) 81,874 85,637 Fund Balance, Beginning 2,381,002 2,381,002 2,381,002 - Fund Balance, Ending $ 2,377,239 2,377,239 $ 2,462,876 $ 85,637 $ 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, 2025
-104-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 15,000 $ 15,000 $ 15,259 $ 259 $ Investment income 1,344 1,344 3,633 2,289 Total Revenues 16,344 16,344 18,892 2,548
OTHER FINANCING SOURCES (USES)
Transfers out (54,453) (54,453) (50,000) 4,453 Total Other Financing Sources (Uses) (54,453) (54,453) (50,000) 4,453 Net Change in Fund Balance (38,109) (38,109) (31,108) 7,001 Fund Balance, Beginning 72,876 72,876 72,876 - Fund Balance, Ending $ 34,767 34,767 $ 41,768 $ 7,001 $ 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, 2025
-105-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Charges for services 27,152 $ 27,152 $ - $ (27,152) $
Investment income 23,726 23,726 53,867 30,141 Total Revenues 50,878 50,878 53,867 2,989 Net Change in Fund Balance 50,878 50,878 53,867 2,989 Fund Balance, Beginning 1,047,200 1,047,200 1,047,200 - Fund Balance, Ending $ 1,098,078 1,098,078 $ 1,101,067 $ 2,989 $ 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, 2025
-106-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Charges for services 685 $ 685 $ - $ (685) $
Investment income 16,222 16,222 49,154 32,932 Total Revenues 16,907 16,907 49,154 32,247
OTHER FINANCING SOURCES (USES)
Transfers out (579,498) (579,498) (108,174) 471,324 Net Change in Fund Balance (562,591) (562,591) (59,020) 503,571 Fund Balance, Beginning 980,533 980,533 980,533 - Fund Balance, Ending $ 417,942 417,942 $ 921,513 $ 503,571 $ 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, 2025
-107-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 266,689 $ 331,629 $ 248,788 $ (82,841) $ Investment income 14,305 14,305 36,737 22,432 Total Revenues 280,994 345,934 285,525 (60,409) OTHER FINANCING SOURCES (USES) Transfers out (235,000) (299,940) (299,940) - Total Other Financing Sources (Uses) (235,000) (299,940) (299,940) - Net Change in Fund Balance 45,994 45,994 (14,415) (60,409) Fund Balance, Beginning 616,667 616,667 616,667 - Fund Balance, Ending $ 662,661 662,661 $ 602,252 $ (60,409) $ 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, 2025
-108-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Other taxes 93,150 $ 93,150 $ 102,466 $ 9,316 $
Investment income 1,646 1,646 4,268 2,622 Total Revenues 94,796 94,796 106,734 11,938 EXPENDITURES Current:
Public works 100,558 116,585 81,754 34,831 Total Expenditures 100,558 116,585 81,754 34,831 Excess of Revenues Over (Under) (5,762) (21,789) 24,980 46,769 Expenditures
Fund Balance, Beginning 76,325 76,325 76,325 - Fund Balance, Ending $ 54,536 70,563 $ 101,305 $ 46,769 $ 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, 2025
-109-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 186,159 $ 186,159 $ 194,663 $ 8,504 $ Total Revenues 186,159 186,159 194,663 8,504 EXPENDITURES Current:
Police 186,159 186,159 194,663 (8,504) Total Expenditures 186,159 186,159 194,663 (8,504) 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
Public Safety State Resources Special Revenue Fund
For the Year Ended June 30, 2025
-110-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 90,000 $ 100,000 $ 70,770 $ (29,230) $ Total Revenues 90,000 100,000 70,770 (29,230) EXPENDITURES Current:
Police 90,000 100,000 70,770 29,230 Total Expenditures 90,000 100,000 70,770 29,230 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, 2025
-111-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Investment income 17,868 $ 17,868 $ 39,884 $ 22,016 $
Total Revenues 17,868 17,868 39,884 22,016 Net Change in Fund Balance 17,868 17,868 39,884 22,016 Fund Balance, Beginning 788,903 788,903 788,903 - Fund Balance, Ending $ 806,771 806,771 $ 828,787 $ 22,016 $ 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, 2025
-112-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 34,680 $ 34,680 $ - $ (34,680) $ Investment income 1,353 1,353 - (1,353) Total Revenues 36,033 36,033 - (36,033) OTHER FINANCING SOURCES (USES) Transfers out - - (141,451) (141,451) Net Change in Fund Balance 36,033 36,033 (141,451) (177,484) Fund Balance, Beginning 169,475 169,475 169,475 - Fund Balance, Ending $ 205,508 205,508 $ 28,024 $ (177,484) $ 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, 2025
-113-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 226,685 $ 226,685 $ 211,362 $ (15,323) $ Investment income 10,912 10,912 35,076 24,164 Total Revenues 237,597 237,597 246,438 8,841 OTHER FINANCING SOURCES (USES) Transfers out (170,000) (170,000) (309,512) (139,512) Net Change in Fund Balance 67,597 67,597 (63,074) (130,671) Fund Balance, Beginning 608,433 608,433 608,433 - Fund Balance, Ending $ 676,030 676,030 $ 545,359 $ (130,671) $ 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, 2025
-114-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 200,017 $ 200,017 $ 186,557 $ (13,460) $ Investment income 2,768 2,768 9,396 6,628 Total Revenues 202,785 202,785 195,953 (6,832) OTHER FINANCING SOURCES (USES) Transfers out (233,010) (233,010) (221,527) 11,483 Net Change in Fund Balance (30,225) (30,225) (25,574) 4,651 Fund Balance, Beginning 110,478 110,478 110,478 - Fund Balance, Ending $ 80,253 80,253 $ 84,904 $ 4,651 $ 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, 2025
-115-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 301,043 $ 445,248 $ 320,892 $ (124,356) $ Investment income 2,073 2,073 40,878 38,805 Total Revenues 303,116 447,321 361,770 (85,551) OTHER FINANCING SOURCES (USES) Transfers out (230,000) (374,205) (30,595) 343,610 Net Change in Fund Balance 73,116 73,116 331,175 258,059 Fund Balance, Beginning 668,086 668,086 668,086 - Fund Balance, Ending $ 741,202 741,202 $ 999,261 $ 258,059 $ 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, 2025
-116-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Other taxes 280,000 $ 280,000 $ 271,815 $ (8,185) $
Investment income 5,426 5,426 22,780 17,354 Total Revenues 285,426 285,426 294,595 9,169 OTHER FINANCING SOURCES (USES) Transfers out (84,000) (394,550) (381,602) 12,948 Total Other Financing Sources (Uses) (84,000) (394,550) (381,602) 12,948 Net Change in Fund Balance 201,426 (109,124) (87,007) 22,117 Fund Balance, Beginning 323,837 323,837 323,837 - Fund Balance, Ending $ 214,713 525,263 $ 236,830 $ 22,117 $ City of Signal Hill
Budgetary Comparison Schedule
Capital Grants Special Revenue Fund
For the Year Ended June 30, 2025
-117-
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Intergovernmental revenues 6,300,000 $ 7,300,000 $ 291,158 $ (7,008,842) $ Total Revenues 6,300,000 7,300,000 291,158 (7,008,842) OTHER FINANCING SOURCES (USES) Transfers out (6,300,000) (2,300,000) (149,158) 2,150,842 Total Other Financing Sources (Uses) (6,300,000) (2,300,000) (149,158) 2,150,842 Net Change in Fund Balance - 5,000,000 142,000 (4,858,000) Fund Balance (Deficit), Beginning, as Restated (142,000) (142,000) (142,000) - Fund Balance, Ending $ 4,858,000 (142,000) $ - $ (4,858,000) $ This page intentionally left blank
STATISTICAL SECTION
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City of Signal Hill
Description of Statistical Section Contents
-118-
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 119-126
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 127-130
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.
Debt Capacity 131-134
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 135-136
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 137-139
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)
-119-
2016 2017 2018 2019
Governmental activities
Net investment in capital assets $ 73,428 67,914 $ 83,152 $ 104,567 $ Restricted 23,481 19,781 19,374 18,360 Unrestricted 13,113 7,115 12,128 3,243 Total governmental activities net position $ 106,322 98,510 $ 114,654 $ 126,170 $ Business-type activities
Net investment in capital assets $ 23,636 18,952 $ 23,536 $ 23,331 $ Unrestricted (2,316) 1,958 (2,572) (2,751) Total business-type activities net position $ 21,320 20,910 $ 20,964 $ 20,580 $ Primary government
Net investment in capital assets $ 97,064 86,866 $ 106,688 $ 127,898 $ Restricted 19,781 23,481 19,374 18,360 Unrestricted 10,797 9,073 9,556 492 Total primary government net position $ 127,642 119,420 $ 135,618 $ 146,750 $ *as restated due to prior year correction
Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-120-
2020 2021 2022 2023 2024 2025
$ 76,772 77,654 $ 78,459 $ 82,815 $ 84,083 $ 90,127 $
17,427 16,784 17,132 15,748 18,899 19,703
20,414 14,553 28,649 42,110 51,658 * 58,055
$ 114,613 108,991 $ 124,240 $ 140,673 $ 154,640 $ 167,885 $ $ 22,684 22,655 $ 23,727 $ 24,580 $ 27,074 $ 27,436 $
(2,083) (2,342) (2,034) (961) 1,124 1,577 $ 20,601 20,313 $ 21,693 $ 23,619 $ 28,198 $ 29,013 $ $ 99,456 100,309 $ 102,186 $ 107,395 $ 111,157 $ 117,563 $ 17,427 16,784 17,132 15,748 18,899 19,703
18,331 12,211 26,615 41,149 52,640 59,632 $ 135,214 129,304 $ 145,933 $ 164,292 $ 182,696 $ 196,898 $ 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)
-121-
2016 2017 2018 2019
Expenses
General government 3,843 $ 4,633 $ 5,146 $ 4,074 $
Community services 1,505 1,362 1,596 1,991 Police 9,350 9,576 10,564 11,504 Community development 868 858 963 1,434 Public works 4,256 4,605 4,927 4,433 Unallocated infrastructure depreciation 551 645 639 401 Interest on long-term liabilities - - 93 221
Fiscal agent fees - - - - Total governmental activites expenses 20,373 21,679 23,928 24,058 Total business-type activities expenses 4,145 5,312 4,846 5,056 Total primary government expenses 24,518 $ 26,991 $ 28,774 $ 29,114 $ Program Revenues
Charges for services
General government 175 $ 178 $ 216 $ 331 $
Community services 212 191 203 173 Police 270 288 250 252 Community development 584 514 567 430
Public works 422 461 790 703
Operating grants 9,313 850 1,199 2,349 Capital grants and contributions 2,020 9,188 4,586 10,219 Total governmental activities program revenues 12,996 11,670 7,811 14,457 Charges for services 3,400 3,785 4,420 4,335 Capital grants and contributions 999 1,927 42 239 Total business-type activities program revenues 4,399 5,712 4,462 4,574 Total primary government program revenues 17,395 $ 17,382 $ 12,273 $ 19,031 $ Net (expense)/revenue
Total governmental activites (7,377) $ (10,009) $ (16,117) $ (9,601) $ Total business-type activities 254 400 (384) (482) Total primary government net expenses (7,123) $ (9,609) $ (16,501) $ (10,083) $ General Revenues and Other Changes in Net Position
Taxes:
Property 1,916 $ 1,802 $ 2,248 $ 2,189 $
Franchise 549 735 487 901 Other 1,459 874 926 1,053
Intergovernmental - Sales and Use Tax 14,588 14,597 14,484 15,789 Investment income 955 442 961 1,788 Unrestricted grants and contributions 46 311 456 94 Gain (loss) on disposition of assets - 14 - - Transfers (1,679) - (30) Extraordinary item - - 4,369 - Total governmental activities 17,834 18,775 23,931 21,784 Investment income (loss) 21 10 28 68 Transfers 1,679 - - 30 Total business-type activities 1,700 10 28 98
Total primary government 19,534 $ 18,785 $ 23,959 $ 21,882 $ Changes in Net Position
Governmental activities 10,457 $ 8,766 $ 7,814 $ 12,183 $ Business-type activities 1,954 410 (356) (384) Total primary government 12,411 $ 9,176 $ 7,458 $ 11,799 $ *as restated due to prior year correction
Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-122-
2020 2021 2022 2023 2024 2025
$ 6,045 5,787 $ 7,093 $ 6,221 $ 7,318 $ 7,059 $
1,996 1,757 2,619 2,535 3,711 3,537
11,009 11,817 11,054 9,014 12,989 14,552
1,270 989 1,359 1,257 1,470 1,660
4,859 4,787 4,633 4,750 6,184 * 5,751
394 394 422 422 446 1,492
217 219 492 494 512 460
- - - - - -
25,790 25,750 27,672 24,693 32,630 34,511
5,263 4,665 5,747 4,553 5,035 7,069 $ 31,053 30,415 $ 33,419 $ 29,246 $ 37,665 $ 41,580 $ $ 90 402 $ 79 $ 69 $ 70 $ 42 $
85 118 135 173 175 214
169 255 179 193 177 183
553 418 601 637 829 850
1,006 824 1,215 1,211 1,708 1,931
1,819 1,524 2,254 2,030 5,053 2,420
938 730 2,828 2,090 1,772 1,372
4,660 4,271 7,291 6,403 9,784 7,012
5,548 4,574 6,208 6,280 6,767 7,385
- 114 - - - -
5,548 4,688 6,208 6,280 6,767 7,385 $ 10,208 8,959 $ 13,499 $ 12,683 $ 16,551 $ 14,397 $ $ (21,130) (21,479) $ (20,381) $ (18,290) $ (22,846) $ (27,499) $ 285 23 461 1,727 1,732 316 $ (20,845) (21,456) $ (19,920) $ (16,563) $ (21,114) $ (27,183) $ $ 2,801 2,330 $ 2,619 $ 2,972 $ 3,107 $ 3,509 $
982 887 975 1,073 1,126 1,153
920 836 1,074 1,369 1,271 1,228
20,268 16,834 24,786 26,462 28,054 28,312
1,346 1,977 707 2,208 5,167 5,398
435 183 553 789 623 1,185
- - - - - -
- 354 (707) (148) (2,535) (42)
- - - - - -
26,752 23,401 30,007 34,725 36,813 40,743
3 64 (76) 51 313 457
- (354) 707 148 2,535 42
3 (290) 631 199 2,848 499 $ 26,755 23,111 $ 30,638 $ 34,924 $ 39,661 $ 41,242 $ $ 5,622 1,922 $ 9,626 $ 16,434 $ 13,967 $ 13,244 $
288 (267) 1,092 1,926 4,580 815 $ 5,910 1,655 $ 10,718 $ 18,360 $ 18,547 $ 14,059 $ 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)
-123-
2016 2017 2018 2019
General Fund
Nonspendable 8,430 $ 12,126 $ 14,722 $ 11,955 $
Restricted 13 13 - - Committed 14,160 20,630 16,553 15,330 Unassigned 12,227 2,226 9,159 10,586 Total General Fund 34,995 34,830 40,434 37,871 All Other Governmental Funds Nonspendable 4,129 347 - - Restricted 19,360 19,762 28,136 18,359 Assigned - - - - Unassigned (2,555) (891) (2,294) (4,259) Total All Other Governmental Funds 19,218 20,934 25,842 14,100 Total All Governmental Funds $ 54,213 55,764 $ 66,276 $ 51,971 $ Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-124-
2020 2021 2022 2023 2024 2025
$ 2,717 11,892 $ 3,132 $ 10,461 $ 8,916 $ 9,985 $
- - - - - -
24,953 16,209 30,349 26,948 35,119 42,157
20,356 14,151 23,102 27,171 31,779 30,712
48,026 42,252 56,583 64,580 75,672 82,854
- - - - - -
17,427 16,783 17,114 17,139 18,922 20,263
- - - - - -
(37) - (1,760) (387) (187) -
17,390 16,783 15,354 16,752 18,735 20,263 $ 65,416 59,035 $ 71,937 $ 81,332 $ 94,407 $ 103,117 $ 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)
-125-
2016 2017 2018 2019
Revenues
Taxes 21,394 $ 18,701 $ 19,444 $ 19,800 $
Licenses and permits 370 374 429 580
Intergovernmental 3,591 8,809 5,440 9,202 Charges for services 762 759 1,066 1,895 Fines and forfeitures 326 289 312 423
Investment income 778 830 1,177 1,984 Other 652 411 417 78 Total Revenues 27,873 30,173 28,285 33,962 Expenditures General government 3,940 4,879 4,409 4,715 Parks, Recreation, and Library Services 1,472 1,576 1,592 1,727 Public safety 9,270 9,152 9,412 9,514
Community development 962 854 948 1,431
Public works 3,883 4,046 4,130 4,141
Capital outlay 3,259 7,726 11,831 22,642 Debt Service - Principal retirement 14 - 16 100 Interest 3 - 84 244
Other debt service - 17 170 16 Total Expenditures 22,803 28,250 32,592 44,530 Excess of revenues over/(under) expenditures 5,070 1,923 (4,307) (10,568) Other Financing Sources/(Uses) Transfers in 1,236 1,687 5,383 22,854 Transfers out (2,915) (1,687) (5,383) (23,044) Other 7,578 - 8,986 - Total other financing sources 5,899 - 8,986 (190) Extraordinary Item - - 4,369 - Net change in fund balances 10,969 $ 1,923 $ 9,048 $ (10,758) $ Capitalized capital outlay 2,985 $ 7,016 $ 11,075 $ 22,386 $ Debt service as a percentage of noncapital expenditures 0.1% 0.1% 1.3% 1.6% Source: City of Signal Hill, Finance Department
Fiscal Year Ending June 30,
-126-
2020 2021 2022 2023 2024 2025
$ 24,805 20,920 $ 29,240 $ 31,685 $ 33,341 $ 33,991 $
679 635 763 809 1,000 895
2,508 6,128 3,028 5,247 4,963 2,772
1,390 1,076 2,116 1,591 3,200 2,485
175 328 144 149 134 136
1,111 1,995 224 2,218 5,862 6,108
435 175 512 789 623 1,173
31,103 31,257 36,027 42,488 49,123 47,560
5,741 5,291 5,591 6,061 6,461 6,646
1,378 1,574 2,019 2,285 2,947 2,967
9,346 10,056 10,245 10,319 10,593 12,426
1,273 1,021 1,365 1,331 1,443 1,711
4,470 4,254 4,614 5,249 5,854 6,002
2,162 2,075 4,114 8,255 4,979 * 8,028
- - - - -
110 109 335 1,152 1,618 1,710
240 242 516 486 568 480
- - - - - -
24,720 24,622 28,799 35,139 34,464 39,971
6,383 6,635 7,228 7,349 14,659 7,589
2,768 8,391 4,933 4,862 4,190 7,290
(2,768) (8,391) (5,640) (5,010) (6,796) (7,463)
- - - 2,195 1,163 1,152
- - (707) 2,047 (1,443) 979
- - - - - - $ 6,383 6,635 $ 6,521 $ 9,396 $ 13,217 $ 8,567 $ $ 1,670 1,851 $ 4,060 $ 7,599 $ 4,830 $ 8,165 $
1.5% 1.5% 3.4% 5.9% 7.3% 6.9%
Fiscal Year Ending June 30,
City of Signal Hill
Assessed Value of Taxable Property
Last Ten Fiscal Years
(Amounts Expressed in Thousands)
-127-
Fiscal Year Taxable Total
Ended Unsecured Assessed Direct
June 30 Residential Commercial Industrial Vacant Others** Property Value (Note) Tax Rate 2016 $ 327,201 1,141,748 $ 347,936 $ 101,203 $ 354,901 $ 128,996 $ 2,401,985 $ 0.06560 2017 341,534 1,197,754 362,919 106,832 289,239 129,041 2,427,319 0.06570 2018 351,123 1,288,907 374,721 84,118 265,753 135,990 2,500,612 0.06569 2019 384,692 1,342,841 395,785 63,059 254,321 142,358 2,583,056 0.06625 2020 405,059 1,433,729 417,571 59,734 268,820 143,706 2,728,619 0.06634 2021 440,103 1,512,648 444,367 63,714 240,712 139,651 2,841,195 0.06641 2022 444,578 1,546,286 456,292 68,651 189,541 138,941 2,844,289 0.06641 2023 478,056 1,646,200 486,408 74,289 257,657 138,192 3,080,802 0.06652 2024 492,066 1,725,505 538,241 94,865 270,538 166,006 3,287,221 0.06658 2025 503,693 1,788,818 603,513 101,580 265,847 167,450 3,430,901 0.06662 ** 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
-128-
Agency 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Basic Levy (1) 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Long Beach Community College District 0.03825 0.06736 0.06760 0.06319 0.06309 0.06327 0.06035 0.05970 0.05789 0.05702 Long Beach Unified School District 0.08324 0.08539 0.14732 0.14053 0.14334 0.13363 0.12724 0.12591 0.18288 0.17619 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00700 Total Direct and Overlapping (2) Tax Rates 1.12500 1.15625 1.21842 1.20722 1.20993 1.20040 1.19109 1.18911 1.24427 1.24021 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) 0.06560 0.06570 0.06569 0.06625 0.06634 0.06641 0.06641 0.06652 0.06658 0.06662 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)
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FY 2024-25
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 $ 3.82% 184,825 130,972 $ 7.69% Bcore Retail Towne Center LLC 65,404 1.91% 0 0.00%
Long Beach Acquisition Corporation 49,752 1.45% 37,182 1.55% G and I XI Sequoia 45,390 1.32% - 0.00%
Jamie Lee David Survivors Trust 39,736 1.16% - 0.00%
LBSH Parcel 1 LLC 0.95% 27,717 32,659 1.15%
Costco Wholesale Corporation 27,588 0.80% 21,962 0.91%
Ann R White 27,556 0.80% - 0.00%
B9 Sequoia Signal Hill 3 Owner LP 24,459 0.71% 0 0.00%
Pike Brothers LLC 22,462 0.65% - 0.00%
PL Signal Hill LP - 0.00% 34,514 1.44%
Tesoro Logistics Operations LLC - 0.00% 54,713 2.28%
Towne Center West I LLC et al - 0.00% 25,356 1.06%
Home Depot USA INC - 0.00% 18,158 0.76%
Signal Hill Town Center LLC - 0.00% 16,266 0.68%
VNO Tru Cherry Avenue LP - 0.00% 14,807 0.62%
Note: 465,978 $ 13.58% 435,500 $ 18.13%
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 2015-16
City of Signal Hill
Property Tax Levies and Collections
Last Ten Fiscal Years
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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 2016 $ 13,950,475 16,337,411 $ 85.39% N/A N/A N/A
2017 13,397,825 16,186,271 82.77% N/A N/A N/A
2018 12,488,540 16,549,362 75.46% N/A N/A N/A
2019 12,720,601 17,090,273 74.43% N/A N/A N/A
2020 12,183,830 18,004,292 67.67% N/A N/A N/A
2021 13,221,476 18,599,353 71.09% N/A N/A N/A
2022 13,303,458 18,537,379 71.77% N/A N/A N/A
2023 14,580,521 20,125,700 72.45% N/A N/A N/A
2024 14,292,624 22,497,195 63.53% N/A N/A N/A
2025 13,943,210 22,979,325 60.68% 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 City of Signal Hill
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts Expressed in Thousands, Except per Capita)
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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 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% 2,191.72 40.86 2025 6,388 15,558 565 1,352 23,862 0.692% 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, 2025
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2024-25 Assessed Valuations: $3,430,900,801 Percent Net Total Debt Applicable Bonded
6/30/2025 To City Debt
DIRECT AND OVERLAPPING GENERAL FUND DEBT
LOS ANGELES COUNTY GENERAL FUND OBLIGATIONS 3,036,637,390 $ 0.163% 4,949,719 $ LOS ANGELES COUNTY SUPERINTENDENT OF SCHOOLS AND CERTIFICATES OF PARTICIPATION 2,331,775 0.163% 3,801 CITY OF SIGNAL HILL GENERAL FUND OBLIGATIONS 6,215,000 100.00% 6,215,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 11,168,520
OVERLAPPING TAX AND ASSESSMENT DEBT
METROPOLITAN WATER DISTRICT 17,155,000 $ 0.084% 14,410
LONG BEACH COMMUNITY COLLEGE DISTRICT (debt summary) 522,659,800 3.833% 20,033,550 LONG BEACH UNIFIED SCHOOL DISTRICT(debt summary) 1,612,000,158 3.834% 61,804,086 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 81,852,046
OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 100.00% 13,890,000 $ 13,890,000 TOTAL DIRECT DEBT 23,861,928 TOTAL OVERLAPPING DEBT 100,695,566 COMBINED TOTAL DEBT 106,910,566 $
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, non-bonded capital lease obligations, and sales tax revenue bonds. Qualified Zone Academy Bonds are included based on principal due at maturity.
Ratios to 2024-25 Assessed Valuation:
Direct Debt ($6,215,000) 0.18%
Total Direct and Overlapping Tax and Assessment Debt 2.39% Total Debt 3.12%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,165,456,922) Overlapping Tax Increment Debt 0.64%
Source: California Municipal Statistics, Inc
City of Signal Hill
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts in Thousands)
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Legal Debt Margin Calculation for the Current Year
Assessed value $3,430,900,801
Debt limit (15% of assessed value) 514,635,120 Debt applicable to limit - Legal debt margin - Current Year 514,635,120 $ Debt as
Fiscal Percentage
Year of Limit
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%
2025 514,635,120 - 514,635,120 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)
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Fiscal Pledged Tax
Year Revenues Principal Interest Total Coverage
2016 $ - - $ - $ - $ - $
2017 - - - - - 2018 - - - - - 2019 - - - - - 2020 - - - - - 2021 - - - - - 2022 - - - - - 2023 - - - - - 2024 - - - - - 2025 - - - - - (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
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Personal Per Capita
Calendar City Income Personal Unemployment
Year Population (in thousands) Income Rate
2014 11,415 357,826 31,347 9.0%
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 11,421 612,612 53,639 4.3%
2025 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
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Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Home Depot * 353 1 3.97% 343 2 3.19%
Costco Wholesale 351 2 3.95% 310 3 2.88%
Office Depot - Veyer, LLC 259 3 2.91% 428 1 3.98%
Target 246 4 2.77% 266 4 2.47%
American University of Health Sciences 150 5 1.69%
In-N-Out Burgers 131 6 1.47%
Glenn E Thomas Company 129 7 1.45% 127 7 1.18%
Federal Express Corporation 125 8 1.41%
Fantasy Castle 125 9 1.41%
Long Beach BMW 121 10 1.36%
Hof's Hut Restaurants 114 10 1.06%
Platt Security Inc 122 9 1.13%
Edge Systems LLC 124 8 1.15%
Mercedes-Benz of Long Beach 127 6 1.18%
Accountable Healthcare I.P.A. 136 5 1.26%
1,990 22.39% 2,097 19.49%
Note:
* - Reported Home Depot's two locations in one total
Source: City of Signal Hill Business Licenses, employee counts are self-reported 2024-2025 2015-16
City of Signal Hill
Full-Time Equivalent City Government Employees by Department Last Ten Fiscal Years
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Department 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Administration 4.73 5.00 5.75 5.80 5.80 5.80 5.80 7.50 8.50 8.50 Finance 5.98 6.80 6.75 5.80 5.80 5.80 5.80 5.80 7.80 6.80
19.53 18.60 18.60 18.60 18.50 8.80 21.60 22.50 25.55 28.47 Police 52.89 53.00 53.00 53.00 51.10 51.10 52.70 52.70 53.20 53.20 Community Development 7.00 4.00 4.00 4.00 4.00 4.00 4.20 5.70 5.70 7.50 Public Works 30.04 28.00 28.00 28.00 28.00 27.00 28.00 30.00 32.00 32.25 Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 0.00 Total 121.17 116.40 117.10 116.20 114.20 103.50 119.10 124.20 132.75 136.72 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 Library
Fiscal Year Ending June 30,
City of Signal Hill
Operating Indicators by Function
Last Ten Fiscal Years
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Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police Calls for service 8,632 9,948 9,078 8,292 8,382 8,172 8,146 10,203 8,693 8,071 Reports written 5,618 4,332 5,061 4,504 3,804 4,345 4,658 4,151 4,317 3,579 Total arrests 1,403 1,216 1,074 987 880 848 823 861 760 713 Hazardous traffic citations 3,638 1,703 3,613 4,116 3,229 2,616 2,011 2,498 1,807 1,200 Parking citations 4,222 4,628 4,092 4,444 3,737 3,293 4,786 5,165 4,453 3,874 Community Development Code enforcement cases 67 68 59 48 32 41 42 198 236 180 Building permits 279 236 233 281 249 250 341 309 351 350 Site plan design reviews 6 6 5 4 3 4 5 6 2 1 Water Number of customers 3,302 3,162 3,116 3,157 3,147 3,142 3,146 3,145 3,140 3,154 Average daily consumption (in millions of gallons) 1.59 1.58 1.57 1.54 1.55 1.6 1.56 1.33 1.39 1.44 Number of hydrants maintained 568 568 568 574 576 576 578 578 578 578 Public Works Traffic signals maintained 33 31 18 13 33 33 33 33 33 33 Street sweeping miles 5,980 5,980 5,720 5,980 5,980 5,980 5,980 5,980 5,980 5,980 Sidewalk repairs (square feet) 1,762 4,504 8,731 1,965 2,988 2,541 3,274 3,324 5,650 3,640 Curb & gutter replaced (linear feet) - - - 900 306 - 114 120 700 505 Cross gutter replaced (square feet) - - - - 2,117 - 160 80 975 350 Engineering Number of infrastructure projects administered 10 3 15 17 13 11 18 23 24 22 Plan checks completed 39 7 74 92 110 115 102 115 110 115 Library items borrowed 29,164 38,947 26,029 20,612 35,742 6,665 36,525 45,281 54,256 55,131 Youth sports participants * 6,936 5,289 6,534 5,697 4,158 144 5,670 33,180 34,650 28,800 After school youth programs (Annual Program Participants)* 30,960 15,326 16,810 20,680 15,585 6,840 13,135 35,785 34,585 18,115 Facility rental bookings 251 620 345 176 167 - 107 84 86 109 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
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Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Public Safety
Police Stations 1 1 1 1 1 1 1 1 1 1
Patrol Vehicles 10 10 10 10 10 10 10 11 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 3,667 3,667 3,667 3,520 3,467 3,414 3,365 3,342 3,091 3,613 Recreation and Culture
Parks *** 10 10 10 10 10 10 10 11 11 11
Area of Parks (Acres) 23.03 23.03 23.03 23.03 23.03 23.03 23.03 25.64 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 6 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,