2021 May 04 - CC PACKETAGENDA
EL SEGUNDO CITY COUNCIL
350 MAIN STREET
DUE TO THE COVID-19 EMERGENCY, THIS
MEETING WILL BE CONDUCTED PURSUANT TO THE
GOVERNOR'S EXECUTIVE ORDER N-29-20.
DUE TO THE COVID-19 EMERGENCY, THIS MEETING WILL BE CONDUCTED
PURSUANT TO THE GOVERNOR'S EXECUTIVE ORDER N-29-20.
TELECONFERENCE VIA ZOOM MEETING
MEETING ID: 964 5963 7962
PIN:730770
PUBLIC ADVISORY:
THE CITY COUNCIL CHAMBER WILL ONLY BE OPEN DURING PUBLIC
COMMUNICATIONS
Drew Boyles, Mayor
Chris Pimentel, Mayor Pro Tern
Carol Pirsztuk, Councilmember
Scot Nicol, Councilmember
Lance Giroux, Councilmember
Tracy Weaver, City Clerk
Matthew Robinson, City Treasurer
Executive Team
Scott Mitnick, City Manager Mark Hensley, City Attorney
Barbara Voss, Deputy City Manager Joe Lillio, Chief Financial Officer
Bill Whalen, Police Chief Chris Donovan, Fire Chief
Sam Lee, Development Services Director Rebecca Redyk, HR Director
Elias Sassoon, Public Works Director Charles Mallory, Info. Tech. Director
Melissa McCollum, Community Svcs. Director
MISSION STATEMENT:
"Provide a great place to live, work, and visit."
VISION STATEMENT:
"A hub for innovation where big ideas take off."
How Can Members of the Public Observe and Provide Public Comments?
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• Residents can watch the meeting live via Spectrum Channel 3 and 22, AT&T U-
Verse Channel 99 and/or El Segundo TV at YouTube.com.
• Access remotely via Zoom from a device of choice. Use URL
https://zoom.us/j/96459637962 and enter PIN: 730770 or visit www.zoom.us,
click on "Join a Meeting" and enter meeting ID and PIN.
• Join by phone at 1-669-900-9128 and enter meeting ID and PIN.
NOTE. Your phone number is captured by the Zoom software and is subject
to the Public Records Act, dial *67 BEFORE dialing in to remain
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• Note that you will be placed in a "listen only" mode and your video feed will not be
shared with City Council or members of the public.
• Members of the Public may also provide comments in the Council Chamber
during the public communication portion of the meeting. Members of the public
must observe "social distancing" requirements at all times, remain six (6) feet
apart from others and wear a mask at all times. Council Chamber will only be
open during public communications, commenter must exit the Council Chamber
after speaking.
• For Public Communications and comments during Public Hearings, please notify
meeting host by raising your virtual hand (see hand icon at bottom of screen) and
you will be invited to speak. (If you do not wish for your name to appear on
the screen, then use the drop -down menu and click on "rename" to rename
yourself "anonymous")
• Do not simultaneously use a microphone through Zoom and a
cellphone/telephone, this combination results in audio problems.
• For electronic public comments on a specific agenda item, submit comments to
the following e-mail address, with a limit of 150 words and accepted up until 30
minutes prior to the meeting: PUBLICCOMMUNICATIONSCa�-elsegundo.org in
subject line please state the meeting date and item number. Depending on
volume of communications, emails will be read during public communications.
• For Public Hearings: written communications will be accepted via email at
PUBLICCOMMUNICATIONS(aD,elsegundo.org both before the meeting and during
open period of the Public Hearing.
• All written communication, documents, email addresses of attendees captured by
Zoom software will be considered a public document subject to possible posting
on the City's website and are subject to disclosure under the Public Records Act.
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Additional Information:
The City Council, with certain statutory exceptions, can only take action upon properly
posted and listed agenda items. Any writings or documents given to a majority of City
Council regarding any matter on this agenda that the City received after issuing the
agenda packet are available for public inspection in the City Clerk's Office during normal
business hours. Such documents may also be posted on the City's website at
www.elsegundo.org and additional copies will be available at the City Council meeting.
Unless otherwise noted in the agenda, the public can only comment on City -related
business that is within the jurisdiction of the City Council and/or items listed on the
agenda during the Public Communications portions of the Meeting. Additionally,
members of the public can comment on any Public Hearing item on the agenda during
the Public Hearing portion of such item. The time limit for comments is five (5) minutes
per person.
Before speaking to the City Council, please state: your name, residence, and
organization/group you represent, if desired. Please respect the time limits.
In compliance with the Americans with Disabilities Act, if you need special
assistance to participate in this meeting, please contact the City Clerk's Office at
310-524-2305. Notification 48 hours prior to the meeting will enable the City to
make reasonable arrangements to ensure accessibility to this meeting.
REGULAR MEETING OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, MAY 4, 2021 - 6:00 PM
4:00 PM CLOSED SESSION
CALL TO ORDER
ROLL CALL
PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total)lndividuals who have received value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing City Council.
Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all
comments are welcome, the Brown Act does not allow City Council to take action on
any item not on the agenda. City Council and/or City Manager will respond to
comments after Public Communications is closed.
SPECIAL ORDER OF BUSINESS
RECESS INTO CLOSED SESSION: City Council may move into a closed session
pursuant to applicable law, including the Brown Act (Government Code Section
§54960, et seq.) for purposes of conferring with City's Real Property Negotiator; and/or
conferring with City Attorney on potential and/or existing litigation; and/or discussing
matters covered under Government Code Section §54957 (Personnel); and/or
conferring with City's Labor Negotiators.
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CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Gov't Code
54956.9(d)(1): -2- matters
1. Vincent Martinez (retired Police Officer) v. City of El Segundo, Workers
Compensation Appeals Board Case No. ADJ9743234
2. Richard Guyer (retired Fire Department Battalion Chief) v. City of El Segundo,
Workers Compensation Appeals Board Case No. ADJ9894247
6:00 PM - CONVENE REGULAR SESSION
CALL TO ORDER
INVOCATION — Pastor Chris Stewart, The Bridge
PLEDGE OF ALLEGIANCE — Council Member Pirsztuk
ROLL CALL
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5 minute limit per
person, 30 minute limit total) Individuals who have received value of $50 or more to
communicate to the City Council on behalf of another, and employees speaking on
behalf of their employer, must so identify themselves prior to addressing the City
Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250.
While all comments are welcome, the Brown Act does not allow Council to take action
on any item not on the agenda. The Council will respond to comments after Public
Communications is closed.
SPECIAL PRESENTATIONS
a) Jack Crawford - Eagle Scout Project Commendation
b) El Segundo PTA's Jump for Education
c) National Police Week
d) Police Department Sworn and Professional Staff Employees of the Year
e) Fire Department Employee of the Year
f) Recently Elected Council Members, Treasurer and City Clerk Presentation
g) COVID-19 Update
h) Sam Lee, Development Services Director Retirement
CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications)
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A. PROCEDURAL MOTIONS
Read all ordinances and resolutions on the Agenda by title only.
Recommendation - Approval
B. CONSENT CALENDAR
City Council Meeting Minutes
Recommendation - Approve Special City Council Meeting minutes of April 19,
2021, Special City Council Meeting minutes of April 20, 2021 (Strategic Planning
Session), Closed and Regular City Council Meeting minutes of April 20, 2021
and Special City Council Meeting Minutes of April 27, 2021.
2. Warrants Demand Register for April 4, 2021 through April 22, 2021
Recommendation - Ratify Payroll and employee benefit checks; checks
released early due to contracts or agreement; emergency disbursements and/or
adjustments; and wire transfers. Approve the following Warrant Demand
Register numbers 1313, 14A, and 1413: Warrant numbers 3035231 through
3035526, and 9001964 through 9001975.
3. Final Parcel Map No. 82473 (EA-1250) - 335 Penn Street
Recommendation - Adopt resolution approving Final Vesting Parcel Map No.
82473, and authorize City Staff and the City Clerk to sign and record said map.
(The project is categorically exempt from the requirements of the California Environmental
Quality Act (CEQA) pursuant to 14 California Code of Regulations §1 5305 as a Class 5
exemption for (Minor Land Divisions))
4. Final Parcel Map No. 74692 (EA-1207) - 224 Whiting Street
Recommendation - Adopt resolution approving Final Vesting Parcel Map No.
74692, and authorize City Staff and the City Clerk to sign and record said map.
(The project is categorically exempt from the requirements of the California Environmental
Quality Act (CEQA) pursuant to 14 California Code of Regulations §15305 as a Class 5
exemption for (Minor Land Divisions))
C. PUBLIC HEARINGS
G�
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D. STAFF PRESENTATIONS
5. Ordinance Amending the El Segundo Municipal Code to Allow
Noncommercial Backyard Beekeeping in the Single -Family Residential
(R-1) Zone District
Recommendation —
1. Waive first reading and introduce an ordinance amending Titles 6, 7 and 15 of
the El Segundo Municipal Code to allow backyard beekeeping on single-family
residential zoned properties.
2. Schedule second reading for the May 18, 2021 City Council meeting.
(The proposed ordinance (zone text amendment) is exempt from further review under the
California Environmental Quality Act ("CEQA') pursuant to CEQA Guidelines §
15061(b)(3)), because it consists only of minor revisions to existing zoning regulations and
related procedures and does not have the potential for causing a significant effect on the
environment)
6. Comprehensive Annual Financial Report for Fiscal Year Ending
September 30, 2020
Recommendation - Receive and file.
7. Development Services Director Salary Range Adjustment
Recommendation - Adopt proposed resolution to establish a modified salary
range for the Development Services Director classification.
E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS
F. REPORTS — CITY CLERK
G. REPORTS - CITY TREASURER
H. REPORTS - COUNCIL MEMBERS
Council Member Giroux
Council Member Nicol
Council Member Pirsztuk
Mayor Pro Tern Pimentel
Mayor Boyles
I. REPORTS - CITY ATTORNEY
J. REPORTS/FOLLOW-UP - CITY MANAGER
CLOSED SESSION
Page 6 of 328
The City Council may move into a closed session pursuant to applicable law, including
the Brown Act (Government Code Section §54960, et seq.) for the purposes of
conferring with the City's Real Property Negotiator; and/or conferring with the City
Attorney on potential and/or existing litigation, and/or discussing matters covered under
Government Code Section §54957 (Personnel); and/or conferring with the City's Labor
Negotiators.
REPORT OF ACTION TAKEN IN CLOSED SESSION (if required)
MEMORIALS
ADJOURNMENT
POSTED:
DATE: April 29, 2021
TIME: 4:00 PM
BY: Tracy Weaver, City Clerk
7
Page 7 of 328
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WHEREAS, Jack Crawford, a Manhattan Beach resident, Eagle Scout Candidate, and
model South Bay youth was inspired by El Segundo High School alumni John
Van Hamersveld's Los Angeles Department of Water and Power Water Tank
Mural, and has decided to highlight this iconic piece of public art through his
Eagle Scout Service Project; and
WHEREAS, Jack's ability to plan and implement his vision, while showcasing exceptional
leadership skills as he guided his team of Scouts and volunteers through the
process of designing, building, and installing a viewing station; including a
surfboard -inspired bench, signage and drought -tolerant landscaping; and
WHEREAS, Jack's desire to educate the public on the history of John Van Hamersveld's
design career and the important contributions the graphic artist has made to
record jacket design from the 1960's onward encourages viewers to scan a QR
code located on signage, directing viewers to an information page housed on
the library's website; and
WHEREAS, Jack's diligence and perseverance is evident in his commitment to achieving
the highest level rank in the Boy Scouts of America organization, and continued
focus on seeing through his Eagle Scout Service Project will be a benefit for
the whole community to enjoy.
NOW, THEREFORE, on this 4th day of May, 2021, the Mayor and Members of the City
Council of the City of El Segundo, California, hereby take great honor in commending Jack
Crawford on completing his Eagle Scout Service Project and building a viewing station for
John Van Hamersveld's Los Angeles Department of Water and Power Tank Mural, that
encourages the community to stop, sit and appreciate art.
914ayor Drew Boyles
31ayor (Pro 2'em Carol (Pirsztuk Council 5tem6er Chris Timentel
Council Mem6erScot Nicol Counci(Mem6er Lance Giroux
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WHEREAS, The Big 5 El Segundo PTA Jump for Education was created to give a healthy and fun
way for the community to come together and support education while being safe in
2021; and
WHEREAS, In the course of its history, the PTA Run for Education began 30 years ago and will
return in 2022, this year it is transformed into the Jump for Education; and
WHEREAS, Today, the Jump for Education, is hosted by the El Segundo Council of PTA's,
benefitting students attending all schools in the district. The Jump for Education has
developed into the Council of PTA's largest fundraiser by getting hundreds of school
children, parents and residents jumping for the entire month of May. It starts on May
Day and runs through Memorial Day; and
WHEREAS, The proceeds raised from this event are used to support a wide range of student needs
including technology requests, physical education equipment, and college and career
preparation programs, providing for unique student experiences, as well as
supporting our teachers through professional development; and
WHEREAS, Community support is of the utmost importance with this event, relying on the
generous sponsors, school, parent and community organizations and a freaking
awesome committee; and
WHEREAS, Community partners play an important role in supporting this event. We are
fortunate to have Big 5 Sporting Goods as the Title Sponsor of the Jump, along with
wonderful presenting sponsors, Chevron and Sky One Federal Credit Union as well as
the support of many local businesses for donations, prizes, discounts and "Jump Spot"
locations; and
WHEREAS, The goal of the El Segundo Council PTA is to positively impact the lives of children and
families, serving its members and its community by providing opportunities and
experiences to make El Segundo School District the best it can be.
NOW, THEREFORE, the Mayor and Members of the City Council of the City of El Segundo, California,
hereby proclaim May 2021 as "El Segundo PTA's Jump for Education Month" in El Segundo and
encourage all citizens to take part and get jumping.
Mayor (Drew (Boyles
Mayor fto gem CaroC(Pirsztuk Councif9dember Chris Timenter
Councd,14emberScot Nicol Counci(WemberLance Giroux
ro clam aw t 1�0 n QCitp of QE[ begurrbo. GCa[itornia
WHEREAS, The President and Congress of the United States have designated May 9 — 15,
2021 as National Police Week which coincides with Peace Officers Memorial
Day on May 15; and
WHEREAS, The members of the El Segundo Police Department play an essential role in
safeguarding the rights and freedoms of those living and working in the City
of El Segundo; and
WHEREAS, It is important that all citizens know and understand the duties, hazards,
and sacrifices of their law enforcement agency, and that member of our law
enforcement recognize their duty to serve and protect the people; and
WHEREAS, The men and women of the El Segundo Police Department, in partnership
with the community, work tirelessly to apply the core values of Respect,
Integrity, Service and Excellence to every community interaction.
NOW, THEREFORE, the Mayor and Members of the City Council of the City of El Segundo,
California, hereby proclaim the May 9 - 15, 2021, as "National Police Week" and urges
all citizens to commemorate law enforcement, past and present, who have dedicated
their professional lives to uphold the law and ensure public safety.
The City Council of the City of El Segundo further call upon residents and employees of El
Segundo to observe May 15, 2021, as Peace Officers Memorial Day in honor of those law
enforcement officers who, through their courageous actions, have made the ultimate
sacrifice in service to their community.
114ayor Drew Boyles
9tayor Tro 2'em Chris Timentel Councif9dember Caro((Pirsztuk
Council Member Scot Nicol CounciCMember Lance Giroux
{:ICVoy
ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: CONSENT CALENDAR
TITLE:
City Council Meeting Minutes
RECOMMENDATION:
Approve Special City Council Meeting minutes of April 19, 2021, Special City Council
Meeting minutes of April 20, 2021 (Strategic Planning Session), Closed and Regular
City Council Meeting minutes of April 20, 2021 and Special City Council Meeting
Minutes of April 27, 2021.
FISCAL IMPACT:
BACKGROUND:
DISCUSSION:
CITY STRATEGIC PLAN COMPLIANCE:
PREPARED BY:
Tracy Weaver, City Clerk
APPROVED BY:
Tracy Weaver, City Clerk
ATTACHED SUPPORTING DOCUMENTS:
Page 10 of 328
City Council Meeting Minutes
May 4, 2021
Page 2 of 2
1. 2021-04-19 CC Minutes (Special Closed)
2. 2021-04-20 CC Minutes SPECIAL (Strategic Plan Study Session)
3. 2021-04-20 CC Minutes
4. 2021-04-27 CC Minutes (SPECIAL)
Page 11 of 328
SPECIAL MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL
MONDAY, APRIL 19, 2021 — 3:00 PM
CLOSED SESSION
CALL TO ORDER — Virtually by Mayor Boyles at 3.00 PM
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tern Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total. None
SPECIAL ORDER OF BUSINESS:
C��iZ•y��L9�Y•9[�7►�
City Council may move into a closed session pursuant to applicable law, including the
Brown Act (Government Code Section §54960, et seq.) for purposes of conferring with
City's Real Property Negotiator; and/or conferring with City Attorney on potential and/or
existing litigation, and/or discussing matters covered under Government Code Section
§54957 (Personnel); and/or conferring with City's Labor Negotiators.
CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION
Existing Litigation pursuant to Government Code §54956.9 (d)(4): -6- matters.
1. Scott O'Connor (City Police Officer) v. City of El Segundo, United States District
Court (Central District of California), Civil Case No. 2:20-CV-0311 DMG (PLAx)
2. Joseph Cameron (Former City Police Officer) v. City of El Segundo, United
States District Court (Central District of California), Civil Case No. 2:20-CV-
04689, JFF-JCx
3. James Tulette (City Fire Fighter) v. City of El Segundo, Los Angeles Superior
Court, Case No. 205T, CV44025
4. Andrew McEntyre (City Police Officer) v. City of El Segundo, United States District
Court (Central District of California), Civil Case No. 2.20-CV11789-MRW
5. Scott Martinez (City Fire Fighter) v. City of El Segundo,
Los Angeles Superior Court Case No. 21 ST CV10637
6. Shawn Bonfield(City Fire Department Battalion Chief) v. City of El Segundo, Los
Angeles Superior Court Case no. 20ST CV48677
ADJOURNMENT at 4:06 PM
Tracy Weaver, City Clerk
1
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SPECIAL MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, APRIL 20, 2021 — 3:30 PM
City Strategic Plan Study Session for FY 2021-22
CALL TO ORDER — Virtually by Mayor Boyles at 3.30 PM
PLEDGE OF ALLEGIANCE - Mayor Pro Tern Pimentel
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tern Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per person, 30-
minute limit total.
Morgan Roth, Government Partnership with Bird, would like to partner with the City to increase
transportation connectivity.
STUDY SESSION OUTLINE
Recommendation: City Council to conduct study session and provide direction as necessary
1. Introduction
A. Welcome — Scott Mitnick, City Manager
B. Public Comments — See above
C. Study Session Overview — Scott Mitnick, City Manager
I. 2020-2022 Three -Year Strategic Plan
II. FY 2020-2021 Year Two Update — Barbara Voss, Deputy City Manager
III. FY 2021-2022 Year Three Review and Potential Revisions
2. Organizational Issues Update
A. Financial Outlook — Joe Lillio, Chief Financial Officer
B. Land Use Projects — Sam Lee, Development Services Director
C. FY 2020-21 Challenges & Successes — Scott Mitnick, City Manager
3. Year Three of City Strategic Plan (FY 2021-2022) — Scott Mitnick
A. City Mission Statement — Scott Mitnick reviewed
B. City Vision Statement — Council discussed
• Expand the Vision Statement
• Questioned if both Mission and Vision Statement are needed. Possibly condense into
Vision statement only.
Page 13 of 328
• Encapsulate the entire community and business community into the Vision
Statement.
C. City Values & Culture — Council discussed
• Add Inclusivity or Inclusion to Value
• Add History to Value
• Growth with Community Engagement to Culture
• Respect/Honor the past
D. Five Broad Goals
• Goal 5 revise activities; fiscal sustainability, update Admin code and TOT to include
Parking lots.
E. Top Ten City Priorities — Council discussed
• Remove #4 — regarding the golf course
• Update #7 — preserve the integrity of R-1 Zoning while identifying potential areas for
new housing to comply with RHNA (Regional Housing Needs Allocation) numbers.
4. Wrap-up
A. Summary of Potential Strategic Plan Revisions
• Timelines with clear expectations.
• Mayor's Incubator item — meet with Mayor for further understanding.
B. Next Steps
C. Concluding Remarks — Scott Mitnick
ADJOURNMENT at 5:24 PM
Tracy Weaver, City Clerk
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MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, APRIL 20, 2021 — 4:00 PM
CLOSED SESSION
CALL TO ORDER — Due to lack of quorum, meeting adjourned to 5.30 PM.
Virtually called to order by Mayor Boyles at 5:30 PM
ROLL CALL
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tern Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total) None.
SPECIAL ORDER OF BUSINESS:
Mayor Boyles announced that Council would be meeting in closed session pursuant to
the items listed on the Agenda.
CLOSED SESSION:
City Council may move into a closed session pursuant to applicable law, including the
Brown Act (Government Code Section §54960, et seq.) for purposes of conferring with
City's Real Property Negotiator; and/or conferring with City Attorney on potential and/or
existing litigation, and/or discussing matters covered under Government Code Section
§54957 (Personnel); and/or conferring with City's Labor Negotiators as follows:
CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION
Initiation of litigation pursuant to Government Code §54956.9 (d)(4): -1- matter
Adjourned at 5:36 PM
Tracy Weaver, City Clerk
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 1
Page 15 of 328
REGULAR MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, APRIL 20, 2021 - 6:01 P.M.
This meeting was conducted virtually via Zoom conferencing and ran
simultaneously with the Special meeting.
CALL TO ORDER - Virtually by Mayor Boyles at 6:01 PM
INVOCATION — Father Alexei Smith, St. Andrew Russian Greek Catholic Church
PLEDGE OF ALLIGENCE — Council Member Nicol
Mayor Boyles -
Present via teleconferencing
Mayor Pro Tern Pimentel -
Present via teleconferencing
Council Member Pirsztuk -
Present via teleconferencing
Council Member Nicol -
Present via teleconferencing
Council Member Giroux -
Present via teleconferencing
PUBLIC COMMUNICATIONS — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total)
The following speakers were all in favor of Sweat Equity Alliance's policy
proposal to implement RIPA (Racial Identity and Profiling Act) requirements
before the required implementation date; Dave Holop, John Pickhaver, Melissa
Cueto, Anya Goldstein, and Christibelle Villena.
Ed Jaeger, resident, commented on item #134.
Liz Garnholz, resident, commented on item #B4.
Christine Vasquez -Fajardo, DEI committee member, commented on the #E14, stating
the DEI committee is in favor of IDEA and Festival of Holidays proposed by the ACC.
Corrie Zupo, resident, commented on item #E14.
The following names were read into the record in favor of Sweat Equity Alliance's
policy proposal to implement RIPA (Racial Identity and Profiling Act)
requirements before the required implementation date; Jennifer Sorbello, Charlie,
Kathryn Tubbs, Chris Busse, Jon Michaels, Toni Michaels, Melissa Cueto, Keith
Puckett, Lindsay Pinkham, Ben Watkins, Reba Hoeschler, Julie Holop, Mark Knight, Jan
Zoochie, Kate Alvarez, and Laura Sorensen
CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications)
Scott Mitnick, City Manager, will follow up with speakers concerning the Sweat Equity
Alliance and Police Chief Bill Whalen gave a brief explanation of the RIPA (Racial
Identity and Profiling Act) report and the implementation process.
SPECIAL PRESENTATIONS:
a) Proclamation read by Mayor Boyles for April as Donate Life Month and presented
to Ambassador Raquel Gonzalez.
b) COVID-19 Update given by Fire Chief Donovan
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 2
Page 16 of 328
A. PROCEDURAL MOTIONS
Read all Ordinances and Resolutions on the Agenda by Title Only.
MOTION by Council Member Giroux, SECONDED by Council Member Pirsztuk to read
all ordinances and resolutions on the agenda by title only. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
B. CONSENT
Approve Regular and Special City Council Meeting minutes of March 16, 2021.
2. Ratify Payroll and employee benefit checks; checks released early due to
contracts or agreement; emergency disbursements and/or adjustments; and wire
transfers and approve the following warrant demand register from March 5, 2021
through April 1, 2021; numbers 12A, 12B, 12C, and 13A: Warrant numbers
3034886 through 3035230, and 9001916 through 9001963.
(Fiscal Impact: $6,704,867.60)
3. Approve reclassification of the Human Resources Assistant classification to
Human Resources Technician, adopt the class specification for the Human
Resources Technician position and approve and adopt the proposed
examination plan for Human Resources Technician.
(Fiscal Impact: None)
4. PULLED BY COUNCIL MEMBER GIROUX
5. Authorize the City Manager to sign a Professional Services Agreement No. 6055
for an amount not to exceed $325,000 with J.P. Morgan as the Manager and
Agr. No. 6056 with Stifel, Nicolaus, & Company, Inc. as the co -manager for
professional underwriter services for the City's Pension Obligation Bonds.
(Fiscal Impact: None)
6. Approve the amended minimum qualifications for the Technical Services Analyst
position, adopt the revised class specification for the Technical Services Analyst
position, and approve and adopt the proposed examination plan for the Technical
Services Analyst position.
(Fiscal Impact: None)
7. Authorize the City Manager to execute a Professional Services Agreement No.
6057 with EcoTierra for $156,900 and appropriate $156,900 from the General
Plan Maintenance Fund to provide environmental review services related to the
housing element update.
(Fiscal Impact: $156,900)
MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux,
approving Consent Agenda item 1, 2, 3, 5, 6, and 7. MOTION PASSED BY
UNANIMOUS VOICE VOTE. 5/0
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 3
Page 17 of 328
PULLED ITEMS:
4. Adopt Resolution No. 5256 approving plans and specifications and authorize staff
to advertise for construction bids for the 400 block of W. Mariposa Avenue and 300
block of W. Pine Avenue Sidewalk Construction Project. Project No. PW 21-07.
(Fiscal Impact: $250,000)
MOTION by Mayor Boyles, SECONDED by Council Member Pirsztuk approving
Resolution No. 5256 with the understanding the City will work with the homeowner on
W. Pine Avenue regarding the trees on the property and authorizing staff to advertise
for construction bids for the 400 block of W. Mariposa Avenue and 300 block of W. Pine
Avenue sidewalk construction project. MOTION PASSED BY VOICE VOTE. 4/1 YES
Boyles Pimentel Pirsztuk Giroux NO Nicol
C. PUBLIC HEARING:
8. Ordinance Amending the El Segundo Municipal Code to Allow Noncommercial
Backyard Beekeeping in the Single -Family Residential (R-1) Zone District.
(Fiscal Impact: None)
Mayor Boyles stated this was the time and place for a public hearing regarding an
ordinance amending the El Segundo Municipal Code to allow noncommercial backyard
beekeeping in the Single -Family Residential (R-1) Zone District.
Clerk Weaver stated that proper notice had been given in a timely manner and that
written communication had been received in the City Clerk's office and will read during
public input.
Elias Sassoon, Public Works Director, reported on the item.
Public Input:
Chia -Ming Ro, resident, answered Council questions and is in favor of backyard
beekeeping in El Segundo.
Clerk Weaver read into the record from the following residents who are in favor of
backyard beekeeping; Chris Hall, Cristin Zeisler and Joanna Schochet Bowe.
MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux to close
the hearing. MOTION PASSED BY UNANIMOUS VOICE VOTE. 5/0
Council discussion
Mark Hensley, City Attorney, read the Ordinance by title only.
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 4
Page 18 of 328
ORDINANCE NO. 1624
AN ORDINANCE AMENDING TITLES 6,7, AND 15 OF THE EL SEGUNDO
MUNICIPAL CODE TO ALLOW NONCOMMERCIAL, BACKYARD BEEKEEPING ON
SINGLE-FAMILY RESIDENTIAL ZONED PROPERTIES.
Council Member Giroux introduced Ordinance No.1624. Second reading and possible
adoption of the Ordinance is scheduled for the regular City Council meeting of May 4,
2021.
D. STAFF PRESENTATIONS:
Mayor Boyles and Council Member Nicol were placed in the Zoom waiting room due to
conflict of interest.
9. Authorize City Manager to execute a Professional Services Agreement with RRM
Design Group for $444,377 to prepare Downtown Specific Plan Update.
(Fiscal Impact: $444,377)
(This action is exempt from CEQA pursuant to CEQA Guidelines §15061(b)(3)
which is the general rule that CEQA applies only to projects which have the
potential for causing a significant effect on the environment and CEQA does not
apply where it can be seen with certainty that there is no possibility that the
activity may have a significant effect on the environment.)
Paul Samaras, AICP, Principal Planner and Jami Williams, Principal at RRM Design,
reported and answered questions on the item.
Council discussion
MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux
authorizing the City Manager to execute a Professional Services Agreement No. 6058
with RRM Design Group for $444,377 to prepare Downtown Specific Plan Update.
MOTION PASSED BY UNANIMOUS VOICE VOTE. 3/0
Mayor Boyles and Council Member Nicol returned to the meeting.
10. Agreement with RJM Design Group to Prepare Recreation Park Needs
Assessment.
(Fiscal Impact: $95,000)
Melissa McCollum, Community Services Director and Zachary Mueting, Principal
Landscape Architect with RJM Design Group presented the item and answered
Council's questions.
Council discussion
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 5
Page 19 of 328
MOTION by Council Member Nicol, SECONDED by Council Member Giroux to award a
consultant contract and authorize City Manager to execute Agreement No. 6059 with
RJM Design Group in an amount not to exceed $95,000 to prepare a Recreation Park
needs assessment, appropriate $25,000 from the Parks Developer Fees Reserve (001-
274-0000-1274) to the CIP Teen Center Renovation Account (301-400-8202-8222), and
appropriate $20,000 from the Gas Tax Fund Balance (106-299-0000-2990) to the Gas
Tax Contractual Services Account (106-400-8206-6206). MOTION PASSED BY
UNAMINOUS VOICE VOTE. 5/0
11. FY 2020-2021 Mid -Year Citywide Budget Report and Recommended
Adjustments.
(Fiscal Impact: The proposed General Fund and General Liability Fund Budget
adjustments are necessary to ensure FY 2020-2021 ends with a balanced
budget on June 30, 2021. Some funds (such as the General Fund and Solid
Waste Fund) will continue to face structural budget challenges which will be
closely monitored addressed via the Proposed FY 2021-2022 Citywide Budget
which will be presented to City Council on May 4, 2021)
Scott Mitnick, City Manager and Joe Lillio, Chief Financial Officer presented the item.
Council discussion
Council consensus to receive and file FY 2021-2021 Citywide Mid -Year Budget Update.
MOTION by Mayor Pro Tern Pimentel, SECONDED by Council Member Pirsztuk to
amend FY 2020-2021 General Fund Revenues from $59,051,732 to $60,724,015 and
appropriations from $59,051,732 to $60,001,732. (Appropriate $750,000 to 001-400-
2901-4109 and $200,000 to 001-400-2101-6406 from General Fund unassigned Fund
Balance). MOTION PASSED BY UNAMINOUS VOICE VOTE. 5/0
MOTION by Mayor Pro Tern Pimentel, SECONDED by Council Member Nicol to amend
FY 2020-2021 General Liability Fund Appropriations from $1,269,399 to $1,619,399
(Appropriate $350,000 to 602-400-0000-6246 from General Liability Fund Balance).
MOTION PASSED BY UNAMINOUS VOICE VOTE. 5/0
12. Receive and file El Segundo-Wiseburn Aquatics Center Operational and
Financial Report FY 2019-2020.
(Fiscal Impact: Net revenue projections for the first two years of Aquatics Center
operations (deficits of $194,024 and $95,202) were lower than actual net revenue
(deficits of $320,785 and $352,215). 2020 operations were significantly impacted
by public health restrictions in place due to COVID-19)
Melissa McCollum, Community Services Director and Linnea Palmer, Aquatics Center
Supervisor reported and answered questions on the item.
Council consensus to receive and file El Segundo El Segundo-Wiseburn Aquatics
Center Operational and Financial Report FY 2019-2020.
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 6
Page 20 of 328
13. Resolution for paying and reporting the value of Employer Paid Member
Contribution (EPMC) for Police Managers' Association.
(Fiscal Impact: None)
Rebecca Redyk, Human Resources Director presented the item.
Council discussion
Mark Hensley, City Attorney read the resolution by title only.
RESOLUTION NO. 5257
A RESOLUTION FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID
MEMBER CONTRIBUTION FOR POLICE MANAGERS' ASSOCIATION.
MOTION by Mayor Pro Tern Pimentel, SECONDED by Council Member Nicol approving
Resolution No. 5257. MOTION PASSED BY UNAMINOUS VOICE VOTE. 5/0
E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS:
14. Arts and Culture Advisory Committee Report
(Fiscal Impact: The ACC's recommendations for Fiscal Year 2021-2022 total
$183,000. There's currently $198,628 of unallocated funding in the Cultural
Development Fund)
Neal Von Flue, Arts and Culture Advisory Committee Chair gave a presentation.
Council discussion
Council consensus to receive and file the presentation on the Cultural Development
Fund recommendations for Fiscal Year 2021-2022: Outdoor Dining Enhancements,
Festival of Holidays, Poet Laureate Program, TEDx El Segundo and IDEA: An After -
School Art Program.
15. Diversity, Equity, and Inclusion Committee Bylaws
(Fiscal Impact: None)
Barbara Voss, Deputy City Manager reported on the item.
Council discussion
MOTION by Council Member Nicol, SECONDED by Council Member Giroux to approve
the Diversity, Equity, and Inclusion Committee bylaws. MOTION PASSED BY
UNAMINOUS VOICE VOTE. 5/0
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 7
Page 21 of 328
16. Conclude the City's Economic Development Advisory Council to Transition to a
Private Non-profit Entity, the "El Segundo Economic Development Corporation".
(Fiscal Impact: None)
Barbara Voss, Deputy City Manager reported on the item.
Council discussion
MOTION by Council Member Giroux, SECONDED by Council Member Pirsztuk to
conclude the City's Economic Development Advisory Council. MOTION PASSED BY
UNAMINOUS VOICE VOTE. 5/0
17. Appointments to Planning Commission
(None)
Mayor Boyles announced Kevin Maggay to a term expiring June 30, 2023, Ryan
Baldino to a term expiring June 30, 2024 and Brenda Newman to a term expiring June
30, 2024.
�V21as] Ci�"Wy1vice] 121V d�T'I
G. REPORTS — CITY TREASURER — Not Present
H. REPORTS — COUNCIL MEMBERS
AD HOC PENSION COMMITTEE REPORT
18. Proposed Topgolf Revenue Allocation Policy
(Fiscal Impact: Adoption of the proposed policy would result in the estimated
$1,920,000 in Topgolf revenues being allocated as follows: Annual pension
payment of $780,000 to $910,000, Annual Equipment Replacement Fund Loan
Repayment of $390,000 to $520,000, After Equipment Replacement Fund Loan
is repaid, the annual $390,000 to $520,000 revenue stream would be dedicated
to the City's Capital Improvement Program for public infrastructure needs, Annual
$200,000 Community Benefit Contribution for rec. and parks projects, Annual
$200,000 contribution for Golf Fund capital improvement projects, Annual
$200,000 3% beverage fee payment to General Fund, and annual $20,000 golf
course ground lease payment to General Fund)
Mayor Pro Tern Pimentel and Council Member Nicol presented the item.
Council discussion
MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux to
receive proposed Topgolf Revenue Allocation Policy for future use of recurring Topgolf
revenue and direct staff to incorporate the proposed Topgolf Revenue Allocation Policy
into the proposed FY 2021-2022 Citywide Budget that will be presented to City Council
on May 4, 2021. MOTION PASSED BY UNAMINOUS VOICE VOTE. 5/0
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 8
Page 22 of 328
Council Member Giroux — Passed
Council Member Nicol — Passed
Council Member Pirsztuk — Passed
Mayor Pro Tern Pimentel — Mentioned we cannot over state how important it is
that the placement of Space Force Systems Command is at the El Segundo
Airforce Base. This placement is grounding the Space and Aerospace in our
backyard for the next two decades.
Mayor Boyles — Thanked everyone involved in making Jack Crawford's Eagle
Scout project a reality.
REPORTS — CITY ATTORNEY — Passed
J. REPORTS/FOLLOW-UP — CITY MANAGER — Mentioned he will follow up on the
Strategic Planning meeting items and will follow up on the RIPA item with the DEI
committee. Mentioned on May 4, 2021 there will be a budget workshop.
MEMORIAL — Barbara Ernest and Velicia Jennings -Branch
ADJOURNED at 10.02 PM
Tracy Weaver, City Clerk
MINUTES OF REGULAR COUCIL MEETING
APRIL 20, 2021
PAGE 9
Page 23 of 328
SPCIAL MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL
TUESDAY, APRIL 27, 2021 — 3.00 PM
CALL TO ORDER — Virtually by Mayor Boyles at 3.03 PM
ROLL CALL
Mayor Boyles - Present via teleconferencing
Mayor Pro Tern Pimentel - Absent
Council Member Pirsztuk - Present via teleconferencing
Council Member Nicol - Present via teleconferencing
Council Member Giroux - Present via teleconferencing
PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per
person, 30-minute limit total) None.
SPECIAL ORDER OF BUSINESS:
1. Conduct Library Board of Trustees Interviews
Council conducted interviews via Zoom. The following candidates were appointed to the
Library Board of Trustees, Sara Whalen, and Kristie Sherrill. The appointments will be
announced at the 6:00 PM, May 18, 2021 Regular City Council meeting.
ADJOURNMENT at 3:29 PM
Tracy Weaver, City Clerk
1
Page 24 of 328
{:ICVoy
ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: CONSENT CALENDAR
TITLE:
Warrants Demand Register for April 4, 2021 through April 22, 2021
RECOMMENDATION:
Ratify payroll and employee benefit checks; checks released early due to contracts or
agreement; emergency disbursements and/or adjustments; and wire transfers. Approve
the following Warrant Demand Register numbers 13B, 14A, and 14B. Warrant numbers
3035231 through 3035526, and 9001964 through 9001975.
FISCAL IMPACT:
The warrants presented were drawn in payment of demands included within the
Adopted FY2020-21 Budget and total $4,648,595.00 ($1,159,737.04 in check warrants
and $3,488,857.96 in wire warrants).
BACKGROUND:
California Government Code Section 37208 provides General Law cities flexibility in
how budgeted warrants, demands, and payroll are audited and ratified by their
legislative body. Pursuant to Section 37208 of the California Government Code,
warrants drawn in payment of demands certified by the City's Chief Financial Officer
and City Manager as conforming to the authorized expenditures set forth in the City
Council adopted budget need not be audited by the City Council prior to payment, but
may be presented to the City Council at the first meeting after delivery.
In government finance, a warrant is a written order to pay that instructs a federal, state,
county, or city government treasurer to pay the warrant holder on demand or after a
specific date. Such warrants look like checks and clear through the banking system like
checks. Warrants are issued for payroll to individual employees, accounts payable to
vendors, to local governments, and to companies or individual taxpayers receiving a
refund.
Page 25 of 328
Warrants Demand Register for April 4, 2021 through
May 4, 2021
Page 2 of 2
DISCUSSION:
The attached Warrants Listing delineates the warrants that have been paid for the
period identified above. The Chief Financial Officer certifies that the listed warrants were
drawn in payment of demands conforming to the adopted budget and that these
demands are being presented to the City Council at its first meeting after the delivery of
the warrants.
CINS'&]IXAIIxr]Los �W_1LI tole] ►yiIall /_1Z[91:1
Goal 5: Champion Economic Development and Fiscal Sustainability
Objective 5B: El Segundo approaches its work in a financially strategic and responsible
way.
PREPARED BY:
Joseph Lillio, Chief Financial Officer
APPROVED BY:
Barbara Voss, Deputy City Manager
ATTACHED SUPPORTING DOCUMENTS:
1. Warrant Register 13B
2. Warrant Register 14A
3. Warrant Register 14B
Page 26 of 328
CITY OF EL SEGUNDO
WARRANTS TOTALS BY FUND
3035231 - 3035338 DATEOFAPPROVAL: ASOFa morm1 REGISTER 139
9001964 - 9001967
001 GENERALFUND 272.15563
104 TRAFFIC SAFETY FUND
IDS STATE GAS TAX FIEND
ice ASSOCIATED RECREATION ACTIVITIES FUND
109 ASSET FORFEITURE Fur1D 2.971.as
Ila MEARVIRE Tt•
III COMM DEVIL. BLOCK GRANT
112 PROP -A' TRANfiPORTATON 450.00
114 PROP'C•TRANSFORTATION 25.774.4e
115 AIR gUAUTY INVESTMENT PROGRAM -
116 HOME SOUND INSTALLATION FUND -
III NYPEAIDN MITIGATION FUND
118 I DA ARTICLE 3 • SB 821 8WIPWAY FUND
119 FATACRAIIT
121 FEMA
120 C.O.p.S, FUND -
127 LAW.A FUND _
123 PSAF PROPERTY TAX PUBLIC SAFETY -
124 FEDERAL GRANTS
125 SPATE GRANT
126 AJP CUPAPROGRAM OVEk5IGHT SVRCHAROE
126 e0-1
129 CERTIFIED ACCESS SPECIALIST PROGRAIa
130 AFFORDABLE HOUSING _
131 CCUNTY STORM WATER PROGRAM -
202 ASSESSMENT DISTRICT era
301 CAPFTAL IMPROVEMENT FUND <0,454.00
302 INFRASTRUCTURE REPLACEMENT FUND
405 FAULUIES MAINTENANCE -
rAl WATER UTILITY FUND 22BTIO.3D
W2 WASTEWATER FUND 1.987.74
503 GOLF COURSE FUND 83.2a
Sae PARK WASTA
505 SOLID WASTE
G01 EQUIPMENT REPLACEMENT -
602 LIA911-11Y INSURANCE -
603 WORKERS COMP. RESERVEANSLRANCE B,B73.11
701 RETIRED EMP. INSURAItGE 146.63
ib3 E)WE14DA9LE TRUSTFUND•DEVELOPER FEES 2267
103 EXPENDABLE TRUSTFUND-OTHER 12.652.00
ma OUTSIDE SERVICES TRUST
TOTAL WARRANTrs 33E7,971.02
STATE DF CALIFORNIA
COUNTY OF LOS ANGELES
Inlormallon on actual expenditures is avaYablo In III& DiletLOr Of Finances off" In the
City of El Segundo,
t certify as to the accuracy el Ffie Demands and the availability of fund for payment thereof.
For Approval: Regular checks held for City council author'Ration to release.
CODES: VOID CHECKS 1317E TO ALIGNMENT:
WA
A= PayTalt and Employee BOAafx ehaeka
AP & U t Compmer generated Release disGmemonts andIP1 o4justmenls approved by She Cdy VOID CHECKS DUE TO INCORRECT CHECK DATE
retmbursomenis, various refunds, contract employee services cenaisfanivAh current coMraclual
Manager. Such as: peymarda lot elit4y services, pally cash and amplayee travel expanse
agraOMaola. fnTtences where prompt paymeal discounFTI
ls tan be oKslned or lots payment penalties VOID CHECKS DUE TO COMPUTER SONARE ERROR:
can be 9vafdtd orwhen a shvalim atiws that the City MeneOer approves,
H= Hand rRion Early Release dllbufsemenls afdlof ACPIr M001a appfoved by the City Manager, NOTES
vn+.hA a�sw�ua
CHIEF FINANCIALOFFICER Joseph Lillis%" -""°'"""'"'°"" If/r
awn u•i:um.:n m `��°'`�" CITY MArWGER
DATE: 04/27/2021 DATE; C e
4/zgs/z�
Page 27 of 328
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
04/05/21 THROUGH 04/11/21
Date
Pavee
_ Description _
4/5/2021
IRS
271,767.48
Federal 941 Deposit
4/5/2021
Employment Development
5,615.85
State SDI payment
4/5/2021
Employment Development
61,754.46
State PIT Withholding
4/7/2021
Cal Pers
11,224.11
EFT Retirement Safety-Fire-PEPRA New 25020
4/7/2021
Cal Pers
23,998.17
EFT Retirement Safety-Police-PEPRA New 25021
4/7/2021
Cal Pers
43,631.39
EFT Retirement Misc - PEPRA New 26013
4/7/2021
Cal Pers
44,386.08
EFT Retirement Misc - Classic 27
4/7/2021
Cal Pers
65.390.53
EFT Retirement Safety Police Classic -1st Tier 28
4/7/2021
Cal Pers
55,331,57
EFT Retirement Safety Fire- Classic 30168
4/7/2021
Cal Pers
6.443.18
EFT Retirement Sfty Police Classic-2nd Tier 30169
4/8/2021
Cal Pers
577,652.33
EFT Health Insurance Payment
03/29121-04104/21
Workers Comp Activity
24.920.35
SCRMA checks issued
03129121-04104121
Liability Trust - Claims
265.00
Claim checks issued
03/29121-04/04/21
Retiree Health Insurance
0.00
Health Reimbursment checks issued
1,192,380.50
DATE OF RATIFICATION: 04109/21
TOTAL PAYMENTS BY WIRE:
Certified as to the accuracy of the wire transfers by;
%xl
Treasury & Custom r Services Manager D to
OJ �� I I O Oi'ptMly�'9nrd by leteph Opio
p� ON-,n�Jpsepx' 41ia, a=Gry d E15eq'mtle. e� dh'A
. 04/27/2021
w,azoxt,an tame:+xarno
Chief Financial Officer
er
Date
S4 q Z z 1
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
1,192,380.50
RICity TreasurerlWire TransferslWire Transfers 10-01-20 to 6.30.21
4/9/2021 1 / 1
Page 28 of 328
DEPT#
1101
1201
1300
2101
2201
2401
2402
2500
2601
2700
2900
6100
2102
3100
3200
2403
2404
4101
4200
4300
4601
4801
CITY OF EL SEGUNDO
WARRANT TOTALS BY DEPARTMENT
AS OF 04/20/2021
REGISTER # 13B
NAME TOTAL
GENERAL FUND DEPARTMENTAL EXPENDITURES
GENERAL GOVERNMENT
City Council
24.77
City Treasurer
City Clerk
504.04
City Manager
280.21
City Attorney
Economic Development
Planning
1,819.15
Administrative Services
107,814.73
Government Buildings
31,376.87
Community OutreachlPlanning
11,306.50
Nondepartmental
33,718.90
Library
1,972.24
Communications
PUBLIC SAFETY
Police
Fire
Building Safety
Ping/Bldg Sfty Administration
PUBLIC WORKS
Engineering
Streets/Park Maintenance
Wastewater
Equipment Maintenance
Administration
COMMUNITY DEVELOPMENT
5100,5200 Recreation & Parks
5400 Centennial
EXPENDITURES
CAPITAL IMPROVEMENT
ALL OTHER ACCOUNTS
TOTAL WARRANTS
188,817.41
31.876.63
2,030,76
1,445.33
35,352.72
12,367.80
33177.53
4.956,50
1,819.20
52, 321.03
2,636.86
2,636.86
28,740.00
80.103.00
387,971.02
Page 29 of 328
CITY OF EL SEGUNDO
WARRANTS TOTALS BY FUND
3035339 - 3035435
DATE OF APPROVAL: AS OF OW04121 REGISTER 4 14A
90p1468- 900f970
001 GENERAL FUND
197,938.87
104 TRAFFfC SAFETY FUND
-
10'a STATE GAS TAX FUND
-
108 ASSOC€ATED RECREATION ACTIVITIES FUND
-
109 ASSET FORFEITURE FUND
-
110 MEARURE "R"
-
111 COMM. DEVEL. BLOCK GRANT
-
112 PROP"A"TRANSPORTATEON
150.00
114 PROP'C"TRANSPORTATION
50.00
115 AIR QUALITY INVESTMENT PROGRAM
-
116 HOME SOUND INSTALLATION FUND
-
117 HYPERION MITIGATION FUND
115 TDA ARTICLE 3- S6921 BIKEWAY FUND
-
119 MTA GRANT
121 FEMA
120 C.O.P,S. FUND
_
122 L AW.A. FUND
_
121 PSAF PROPERTY TAX PUBLIC SAFETY
..
124 FEDERAL GRANTS
-
t25 STATE GRANT
126 AlP CVPA PROGRAM OVERSIGHT SURCHARGE
98,00
12a SB�1
-
129 CERTIFIED ACCESS SPECIALIST PROGRAM
-
130 AFFORDABLE HOUSING
-
131 COUNTY STORM WATER PROGRAM
-
202 ASSESSMENT DISTRICT#73
301 CAPITAL IMPROVEMENT FUND
23.770 00
302 INFRASTRUCTURE REPLACEMENT FUND
-
405 FACILITIES MAINTENANCE
501 WATER UTILITY FUND
2,660,39
502 WASTEWATER FUND
4,936.38
503 GOLF COURSE FUND
4,253.36
Sol PARS( VISTA
_
$05 SOLID WASTE
-
Sol EQUIPMENT REPLACEMENT
602 LIABILITY MSURANCE
_
603 WORKERS COMP. RESERVE!€NSURANCE
-
701 RETIRED EMP. INSURANCE
702 EXPENDABLE TRUST FUND - DEVELOPER FEES
-
703 EXPENDABLE TRUST FUND - OTHER
1,494.00
708 OUTSIDE SERVICES TRUST
2.186.25
TOTALWARRANT5
$ 227,545.24
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
Information on actual expenditures is available in the Director of Finance's office in the
City of El Segundo.
I cedtty as to the accuracy of The Demands and the availability of fund for payment thereof.
For Approvat: Regular checks held for City council auftTization to release.
CODES'
VOID CHECKS DUE TO ALIGNMENT:
NIA
A= Payroll and Emp€oyes Beneftt checks
AP A U = Computer generated Release disbursements and/or adjustments approved by the City
VOID CHECKS DUE TO INCORRECT CHECK DATE:
reimbursements, various refunds. eanlreCI employee services consistent with current contractual
Manager. Such as: payments for vl411y services, petty cash and employee travel expense
agreements, instances where prompt payment discounts can be obtained or late payment penalties
VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR:
can be avoided or when a si€uallon arises that the City Manager approves.
H= Handwritten Eady Release dlsbursemenls andlor adjoslmenls approved by the City Manager, NOTES
CHIEF FINANCIAL OFFICER �'" 61LL�
C17Y MANAGER
��
DATE: DATE:
Page 40 of 328
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
04/12/21 THROUGH 04/18/21
Date
Pa ee
4/12/2021
West Basin
1,500,591.53
4/15/2021
Manufacturers & Traders
68,341.02
4/15/2021
Manufacturers & Traders
1,130.77
4/15/2021
Manufacturers & Traders
550.00
4/16/2021
ExpertPay
1,670.75
04/05/21-04/11/21
Workers Comp Activity
21,420,00
04/05/21-04/11/21
Liability Trust - Claims
829.95
04105/21-04/11/21
Retiree Health Insurance
0.00
1,594,534.02
DATE OF RATIFICATION: 04/15121
TOTAL PAYMENTS BY WIRE:
Certified as to the accuracy of the wire transfers by:
,-Z) --!!
:±� �-gLdg2--
Treasury,& Customer tervices Manager Date
Chief 6inah6lal Officer
CitylManager
Description
H2O payment
457 payment Vantagepoint
401(a) payment Vantagepoint
IRA payment Vantagepoint
EFT Child support payment
SCRMA checks issued
Claim checks issued
Health Reimbursment checks issued
q -
Date
���•
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
1,594,534.02
PACity TreasureAVVire Transfers\Wire Transfers 10-01-20 W 6-30-21 4/15/202�a�e141 of 328
DEPT#
1101
1201
1300
2101
2201
2401
2402
2500
2601
2700
2900
6100
2102
3100
3200
2403
2404
4101
4200
4300
4601
4801
CITY OF EL SEGUNDO
WARRANT TOTALS BY DEPARTMENT
AS OF 05/04/21
REGISTER # 14A
NAME TOTAL
GENERAL. FUND DEPARTMENTAL EXPENDITURES
GENERAL GOVERNMENT
City Council
223,31
City Treasurer
City Clerk
120,00
City Manager
293,46
City Attorney
Economic Development
Planning
715.56
Administrative Services
60,286.61
Government Buildings
10,852,30
Community Outreach/Planning
4,777,26
Nondepartmental
15,002A3
Library
Communications
92,270.93
PUBLIC SAFETY
Police
Fire
Building Safety
Ping/Bldg Sfty Administration
PUBLIC WORKS
Engineering
Streets/Park Maintenance
Wastewater
Equipment Maintenance
Administration
COMMUNITY DEVELOPMENT
5100,5200 Recreation & Parks
5400 Centennial
EXPENDITURES
CAPITAL IMPROVEMENT
ALL OTHER ACCOUNTS
TOTAL WARRANTS
16, 727.67
21, 577.73
240.00
38,545,40
2, 270.19
31771.47
4,936,38
5,406.82
44,384,86
4,010.15
4,010.15
23,778.00
24,555.90
227, 545.24
Page 42 of 328
3G35436 - 3035526
9001971 9001975
001
104
106
108
109
110
ill
112
114
115
116
117
lie
119
121
120
122
123
124
US
126
128
129
130
131
202
301
302
405
501
502
503
504
505
601
602
603
701
702
703
700
GENERALFUND
TRAFFIC SAFETY FUND
STATE GAS TAT( FUND
ASSOCIATED RECREATION ACTIVITIES FUND
ASSET FORFEITURE FUND
MEARURE"R'
COMM_ REVEL, BLOCK GRANT
PROP"A"TRANSPORTATION
PROP"C"TRANSPORTATION
AIR OUALITY INVESTMENT PROGRAM
HOME SOUND INSTALLATION FUND
HYPERION MITIGATION FUND
TDA ARTICLE 3 - SS R21 DIKEWAY FUND
MTA GRANT
FEMA
C.O.P S. FUND
L.AW,A- FUND
PSAF PROPERTY TAX PUBLIC SAFETY
FEDERAL GRANTS
STATE GRANT
Alp CUPA PROGRAM OVERSIGHT SURCHARGE
se-1
CERTIFIED ACCESS SPECIALIST PROGRAM
AFFORDABLE HOUSING
COUNTY STORM WATER PROGRAM
ASSESSMENT DISTRICT 073
CAPITAL IMPROVEMENT FUND
INFRASTRUCTURE REPLACEMENT FUND
FACILITIES MAINTENANCE
WATER UNLkTY FUND
WASTEWATER FUND
GOLF COURSE FUND
PARK VISTA
SOLID WASTE
ECUIPMENT REPLACEMENT
LIABILITY INSURANCE
WORKERS CCMP_ RESERVEANSURANCE
RETIRED EMP. INSURANCE
EXPENDABLE TRUST FUND - DEVELOPER FEES
EXPENDABLE TRUST FUND - OTHER
OUTSIDE SERVICES TRUST
231,824. 14
74.24
14.745 23
55.97
CkT-i118c:
36 640.00
92,307 97
246,65
2,490.00
5,678.05
6,090 00
17,296.20
4.536.69
119,200.00
119.87
103.04
6,780.91
950.24
2,500.01)
TOTAL WARRANTS
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
Information on actual expenditures is available In the Director of Finances orifice In the
City or El Segundo,
I Certify as 10 the accuracy of the Demands and the availability of fund for payment thereof.
For Approval: Regular checks held far City council authorization to release.
CODES:
A= Payroll and Employee Eenefit checks
AP & U = Computer generated Release disbursements andlor adjustments approved by the City
reimbursements, Vedeu$ refunds, contract employee services consistent with current Contractual
Manager. Such ae� payments for util4y services, petty cash and employee travel expense
agreements, Instances where prompt payment discounts Can be obtained or tale payment penalties
can be avoided or when a situation arises that the City Manager approves.
CITY OF EL SEGUNDO
WARRANTS TOTALS BY FUND
DATE OF APPROVAL: AS OF 05104121
$ 544.220.78 y/
REGISTER # 14B
VOID CHECKS DUE TO ALIGNMENT:
rVA
VOID CHECKS DUE TO INCORRECT CHECK DATE:
VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR:
H= �` Handwrillen Early Release disbursemenl lendfor adjustments approved by the City Manager. NOTES —
IY\ s r1
CHIEF FINANCIAL OFFICER %1'{ fy j,�l� La iqN' CITY MANAGER
DATE: �W.T� DATE:
Page 52 of 328
CITY OF EL SEGUNDO
PAYMENTS BY WIRE TRANSFER
04/19/21 THROUGH 04/25/21
Date
Pa ee
Description
4/19/2021
IRS
271,826,35
Federal941 Deposit
4/19/2021
Employment Development
5,459.59
State SDI payment
4/19/2021
Employment Development
62,273.86
State PIT Withholding
4/19/2021
Cal Pers
11,224.11
EFT Retirement Safety- Fire-P EPRA New 25020
4/19/2021
Cal Pers
23,998.17
EFT Retirement Safety- Pol ice- PEP RA New 25021
4/19/2021
Cal Pers
43,144.85
EFT Retirement Misc - PEPRA New 26013
4/19/2021
Cal Pers
45,164.65
EFT Retirement Misc - Classic 27
4/19/2021
Cal Pers
65,432.30
EFT Retirement Safety Police Classic - 1 st Tier 28
4/19/2021
Cal Pers
55,390.38
EFT Retirement Safety Fire- Classic 30168
4/19/2021
Cal Pers
6,443.18
EFT Retirement Sfty Police Classic-2nd Tier 30169
04/12/21-04/18/21
Workers Comp Activity
111,584,00
SCRMA checks issued
04/12/21-04118/21
Liability Trust - Claims
0.00
Claim checks issued
04/12/21-04/18/21
Retiree Health Insurance
0.00
Health Reimbursment checks issued
DATE OF RATIFICATION: 04/23121
TOTAL PAYMENTS BY WIRE:
701,943.44
Certified as to the accuracy of the wire transfers by:
Treasury & guston6er Services Manager Date
Date
Date
Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo.
701,943.44
PACity TreasurertiWire TransfersUire Transfers 10-01-20 to 6-30-21 4/23/2021 1/1
Page 53 of 328
CITY OF EL SEGUNDO
WARRANT TOTALS BY DEPARTMENT
AS OF 05/04/21
REGISTER # 14B
DEPT#
NAME TOTAL
GENERAL FUND DEPARTMENTAL EXPENDITURES
GENERAL GOVERNMENT
1101
City Council
222.55
1201
City Treasurer
23.67
1300
City Clerk
604.19
2101
City Manager
1,806.92
2201
City Attorney
2401
Economic Development
44.65
2402
Planning
424.26
2500
Administrative Services
71,030,82
2601
Government Buildings
12,468.82
2700
Community Outreach/Planning
2900
Nondepartmentai
31,266.75
6100
Library
4,935.73
2102
Communications
122,828,36
PUBLIC SAFETY
3100
Police
36,592.85
3200
Fire
48,701.33
2403
Building Safety
41.46
2404
PIng/Bldg Sfty Administration
706.82
86,042.46
PUBLIC WORKS
4101
Engineering
4,436.42
4200
Streets/Park Maintenance
45190.23
4300
Wastewater
4,199,83
4601
Equipment Maintenance
1,386.25
4801
Administration
158.55
55, 371.28
COMMUNITY DEVELOPMENT
5100,5200 Recreation & Parks 98,465.79
5400 Centennial
98, 465.79
EXPENDITURES
CAPITAL IMPROVEMENT
ALL OTHER ACCOUNTS
TOTAL WARRANTS
5,090.00
176.422.89 /
544,220.78
Page 54 of 328
{:ICVoy
ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: CONSENT CALENDAR
TITLE:
Final Parcel Map No. 82473 (EA-1250) - 335 Penn Street
RECOMMENDATION:
Adopt resolution approving Final Vesting Parcel Map No. 82473, and authorize City
Staff and the City Clerk to sign and record said map.
(The project is categorically exempt from the requirements of the California Environmental Quality
Act (CEQA) pursuant to 14 California Code of Regulations §1 5305 as a Class 5 exemption for
(Minor Land Divisions))
FISCAL IMPACT:
None.
BACKGROUND:
On June 13, 2019, El Segundo Planning Commission adopted Resolution No. 2862,
allowing construction of a three -unit multifamily residential building and subdivision of
property into condominium air parcels on property located at 335 Penn Street. The
applicant subsequently commenced construction and the project is now nearing
completion. As such, the applicant seeks approval of a Final Vesting Parcel Map.
DISCUSSION:
Government Code § 66458 states that a Final Map must be reviewed and approved by
a jurisdiction's legislative body. The requested Final Vesting Parcel Map conforms with
the Tentative Map approved by Planning Commission, including the conditions of
approval associated with the project. Further, the Map has been reviewed and
approved by the Los Angeles County Department of Public Works, and the City
Engineer has reviewed and approved the Map for technical accuracy. Thus, City staff
has determined that Final Vesting Parcel Map No. 82473 is in substantial conformance
with the General Plan and applicable zoning and building ordinances.
Page 65 of 328
Final Parcel Map No. 82473 (EA-1250) - 335 Penn St
May 4, 2021
Page 2 of 2
Staff prepared the attached, proposed resolution approving the Vesting Final Map and
recommends that City Council adopt the resolution. After City Council approves the
Vesting Final Map, all necessary signatures will be obtained and the Map will be
recorded in the County Recorder's Office.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Engagement, and Communication; Embrace
Diversity, Equity, and Inclusion
Objective 1A: El Segundo Provides unparalleled service to internal and external
customers.
PREPARED BY:
Eduardo Schonborn, AICP, Principal Planner
APPROVED BY:
Barbara Voss, Deputy City Manager
ATTACHED SUPPORTING DOCUMENTS:
1. Vicinity Map
2. Resolution
3. PARCEL MAP NO. 82473
Page 66 of 328
PINE AVE
14A S WAY
335 Penn St.
r',
0
I
i i ft `-i
Park
Elim 0,11MI mill
RESOLUTION NO.
A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL APPROVING A
FINAL VESTING PARCEL MAP NO. 82473 FOR ENVIRONMENTAL
ASSESSMENT NO. EA-1250, AND SUBDIVISION NO. SUB 19-01 FOR A
3-UNIT RESIDENTIAL CONDOMINIUM SUBDIVISION LOCATED AT 335
PENN STREET.
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares that:
A. On March 25, 2019, Lyle Maul on behalf of Virginia 200 Luxury Townhomes
LLC filed an application for Environmental Assessment No. EA-1250,
Adjustment No. ADJ 19-01, and Subdivision No. 19-01 for Vesting Tentative
Parcel Map No. 82473 to allow construction of a three -unit multifamily
residential building, to subdivide a property into condominium air space
units, and to reduce the required driveway and semi -subterranean garage
widths;
B. On June 13, 2019, the Planning Commission adopted Resolution No. 2862
approving Environmental Assessment No. EA-1250, Adjustment No. ADJ
19-01, and Subdivision No. SUB 19-01 for Vesting Tentative Parcel Map
No. 82473;
C. The Final Vesting Parcel Map now requires approval by the City Council.
SECTION 2: Final Map Findings. Based upon the entirety of the record including, without
limitation, the staff report, the City Council approves Final Vesting Map No. 82473 for the
following reasons:
A. The Final Vesting Parcel Map substantially conforms to Vesting Tentative
Parcel Map. 82473 approved by Planning Commission on June 13, 2019;
and
B. The Final Vesting Parcel Map conforms to the El Segundo Municipal Code
and Subdivision Map Act (Governmental Code §§ 66410, et seq.).
SECTION 3: Authorization. The Development Services Director, City Clerk and the
necessary City Departments are hereby authorized to sign and record said Map and take
any further actions needed to effectuate this Resolution.
SECTION 4: This Resolution will become effective immediately upon adoption and remain
effective unless superseded by a subsequent resolution.
-1-
Page 68 of 328
SECTION 5: The City Clerk is directed mail a copy of this Resolution to Lyle Maul on
behalf of Virginia 200 Luxury Townhomes LLC, and to any other person requesting a
copy.
SECTION 6: This Resolution is the City Council's final decision and will become effective
immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 4th day of May, 2021.
Drew Boyles, Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. was duly passed, approved and adopted by said City Council at a
regular meeting held on the 41" day of May, 2021, approved and signed by the Mayor,
and attested to by the City Clerk, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
-2-
Page 69 of 328
1 PARCEL VESTING
5,'2°S°.�. PARCEL MAP NO. 82473
IN THE CITY OF EL SEGUNDO
COUNTY OF LOS ANGELES
STATE OF CALIFORNIA
BEING A SUBDIVISION OF LOT 14, BLOCK 37, EL SEGUNDO, AS PER
MAP RECORDED IN BOOK 22, PAGES 54 AND 55 OF MAPS, IN THE
OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
FOR CONDOMINIUM PURPOSES
SUBDIVIDER'S STATEMENT:
I HEREBY STATE THAT I AM THE SUBDIVIDER OF THE LANDS INCLUDED WITHIN THE
SUBDIVISION SHOWN ON THIS MAP WITHIN THE DISTINCTIVE BORDER LINES, AND I
CONSENT TO THE PREPARATION AND FILING OF SAID MAP AND SUBDIVISION.
BY:
SUBDIVIDER
RECORD OWNER IS: VILLAS ON PENN LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE
VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT
TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS,
ACCURACY, OR VALIDITY OF THAT DOCUMENT.
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES
ON BEFORE ME,
A NOTARY PUBLIC, PERSONALLY APPEARED
WHO PROVED TO ME ON THE BASIS OF SATISFACTORY EVIDENCE TO BE THE PERSON(S)
WHOSE NAME(S) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO
ME THAT HE/SHE/THEY EXECUTED THE SAME IN HIS/HER/THEIR AUTHORIZED CAPACITY(IES)
AND THAT BY HIS/HER/THEIR SIGNATURE(S) ON THE INSTRUMENT, THE PERSON(S) OR THE
ENTITY UPON BEHALF OF WHICH THE PERSON(S) ACTED, EXECUTED THE INSTRUMENT.
I CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA
THAT THE FOREGOING PARAGRAPH IS TRUE AND CORRECT.
WITNESS MY HAND AND OFFICIAL SEAL.
SIGNATURE:
PRINTED NAME:
MY PRINCIPAL PLACE OF BUSINESS IS IN LOS ANGELES COUNTY
MY COMMISSION NO.
MY COMMISSION EXPIRES:
CONDOMINIUM NOTE:
THIS SUBDIVISION IS APPROVED AS A CONDOMINIUM PROJECT FOR 3 (THREE) UNITS,
WHEREBY THE OWNERS OF THE UNITS OF AIR SPACE WILL HOLD AN UNDIVIDED
INTEREST IN THE COMMON AREAS THAT WILL, IN TURN, PROVIDE THE NECESSARY
ACCESS AND UTILITY EASEMENTS FOR THE UNITS.
I HEREBY CERTIFY THAT ALL CERTIFICATES HAVE BEEN FILED AND DEPOSITS HAVE
BEEN MADE THAT ARE REQUIRED UNDER THE PROVISIONS OF SECTIONS 66492 AND
66493 OF THE SUBDIVISION MAP ACT.
EXECUTIVE OFFICER, BOARD OF SUPERVISORS
OF THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA
DEPUTY DATE
I HEREBY CERTIFY THAT SECURITY IN THE AMOUNT OF $
HAS BEEN FILED WITH THE EXECUTIVE OFFICER, BOARD OF SUPERVISORS OF THE
COUNTY OF LOS ANGELES AS SECURITY FOR THE PAYMENT OF TAXES AND SPECIAL
ASSESSMENTS COLLECTED AS TAXES ON THE LAND SHOWN ON MAP OF PARCEL MAP
NO. 82473 AS REQUIRED BY LAW.
EXECUTIVE OFFICER, BOARD OF SUPERVISORS
OF THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA
DEPUTY
DATE
Q�pFESS/ON
J. R��l
z
� m
No. 30826
qTF OF CA��F��
SHEET 1 OF 2 SHEETS
ENGINEER'S STATEMENT:
THIS MAP WAS PREPARED BY ME OR UNDER MY DIRECTION AND WAS COMPILED FROM
RECORD DATA IN CONFORMANCE WITH THE REQUIREMENTS OF THE SUBDIVISION MAP
ACT AND LOCAL ORDINANCE AT THE REQUEST OF VILLAS ON PENN LLC ON JUNE 25,
2020.1 HEREBY STATE THAT THIS PARCEL MAP SUBSTANTIALLY CONFORMS TO THE
APPROVED OR CONDITIONALLY APPROVED TENTATIVE MAP, IF ANY.
GARY J. ROEHL, R.C.E. NO. 30826
RECORD DATA NOTE:
DATE
RECORD DATA WAS TAKEN FROM EL SEGUNDO, AS PER MAP RECORDED IN BOOK 22,
PAGES 54 AND 55 OF MAPS, RECORDS OF SAID COUNTY.
CITY ENGINEER'S CERTIFICATE:
I HEREBY CERTIFY THAT I HAVE EXAMINED THIS MAP; THAT IT CONFORMS SUBSTANTIALLY
TO THE TENTATIVE MAP AND ALL APPROVED ALTERATIONS THEREOF; THAT ALL
PROVISIONS OF THE SUBDIVISION ORDINANCES OF THE CITY OF EL SEGUNDO
APPLICABLE AT THE TIME OF APPROVAL OF THE TENTATIVE MAP HAVE BEEN COMPLIED
WITH; THAT ALL PROVISIONS OF THE SUBDIVISION MAP ACT SECTION 66450 (a)(1)(2) AND
(3) HAVE BEEN COMPLIED WITH; AND THAT I AM SATISFIED THIS MAP IS TECHNICALLY
CORRECT WITH RESPECT TO CITY RECORDS.
LIFAN XU, R.C.E. NO. 72237
CITY ENGINEER, CITY OF EL SEGUNDO
CITY CLERK'S STATEMENT:
DATE
I HEREBY CERTIFY THAT THE CITY COUNCIL OF THE CITY OF EL SEGUNDO BY RESOLUTION
ADOPTED AT ITS SESSION HELD ON THE DAY OF
APPROVED THE ANNEXED MAP AND
SUBDIVISION.
CITY CLERK, CITY OF EL SEGUNDO
SPECIAL ASSESSMENT'S CERTIFICATE
DATE
I HEREBY CERTIFY THAT ALL SPECIAL ASSESSMENTS LEVIED UNDER THE JURISDICTION
OF THE CITY OF EL SEGUNDO, TO WHICH THE LAND INCLUDED WITHIN THIS SUBDIVISION
OR ANY PART THEREOF IS SUBJECT, AND WHICH MAY BE PAID IN FULL, HAVE BEEN PAID
IN FULL.
CRISTA BINDER DATE
CITY TREASURER, CITY OF EL SEGUNDO
PLANNING COMMISSION CERTIFICATE
I HEREBY CERTIFY THAT THE PLANNING COMMISSION OF THE CITY OF EL SEGUNDO BY
RESOLUTION NO. 2862, ADOPTED AT ITS SESSION HELD ON JUNE 13, 2019 APPROVED
THE ANNEXED MAP AND SUBDIVISION.
SAM LEE DATE
SECRETARY OF THE PLANNING COMMISSION
CITY OF EL SEGUNDO
COUNTY SURVEYOR'S CERTIFICATE:
I HEREBY CERTIFY THAT I HAVE EXAMINED THIS MAP; THAT IT COMPLIES WITH ALL
PROVISIONS OF STATE LAW APPLICABLE AT THE TIME OF APPROVAL OF THE TENTATIVE
MAP; AND THAT I AM SATISFIED THAT THIS MAP IS TECHNICALLY CORRECT IN ALL
RESPECTS NOT CERTIFIED BY THE CITY ENGINEER.
COUNTY SURVEYOR
AM
FABRIZIO G. PACHANO, DEPUTY
L.S NO. 7274
DATE
Page 70 of 328
SCALE: 1 "=20$
SHEET 2 OF 2 SHEETS
FOUND SPK&W STAMPEE
CITY ENG. TIE NO. N-17.2
SAID TIE NOTE. ACCEPTE
OF THE SE'LY LINE OF LC
M.B. 22-54-55 AND THE C
1
7'
r-
0
o,
0
7'
w
an
-01
0
rl-I
0
0
0
�L-
PARCEL
VESTING
MAP NO,
IN THE CITY OF EL SEGUNDO
COUNTY OF LOS ANGELES
STATE OF CALIFORNIA
FOR CONDOMINIUM PURPOSES
LEGEND: /
INDICATES THE BOUNDARY OF THE
LAND BEING SUBDIVIDED BY THIS MAP
R1 BLOCK 37, EL SEGUNDO, M.B. 22-54-55 /
I
3j
/
0/ Ipp/
pp. E'LY LINE OF LOTS 10
THROUGH 16, INCLUSIVE, R1
1 / nl\AI'I V I InIC (lC I (lTC 1 F ANlfl 1 F 01
W'LY LINE OF LOTS 10
THROUGH 15, INCLUSIVE, R1
NOT A PART OF THIS SUBDIVISION
S'LY LINE OF LOT 10, R1
— — — — — — — — — — — — — — —
N 89053'52"E 143.00'
ESTABLISHED CL INTERSECTION ON SSMH
USING 4 SPK&W STRADDLERS STAMPED
RCE 30826 PER CITY ENG. TIE NO. N-17.1.
ACCEPTED AS CL INTERSECTION.
N 89053'52"E
ALLEY
25'
82473
5 0'
1"
0
0
(D
FIA
25'
w
w
rr
V )
z
z
w
n
00
co
5 0'
25' 25'
01-
r
15
Fn 2" I.P., FLUSH, TAGGED RCE 30826 PER CITY ENG.
NO. M-18. ACCEPTED AS INTERSECTION OF THE
'LY LINE OF LOT D, EL SEGUNDO, M.B. 22-54-55
ID N'LY PROLONGATION OF THE CL PENN STREET
ESTABLISHED CL INTERSECTION USING 4 L&T
TIES TAGGED RCE 30826 PER CITY ENG. TIE
NO. M-18. ACCEPTED AS CL INTERSECTION.
HOLLY AVENUE
ESTABLISHED CL INTERSECTION ON
SSMH USING 5 TAGGED L&T TIES PER
CITY ENG. TIE NO. M-18.1. ACCEPTED
AS CL INTERSECTION.
Page 71 of 328
{:ICVoy
ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: CONSENT CALENDAR
TITLE:
Final Parcel Map No. 74692 (EA-1207) - 224 Whiting Street
RECOMMENDATION:
Adopt resolution approving Final Vesting Parcel Map No. 74692, and authorize City
Staff and the City Clerk to sign and record said map.
(The project is categorically exempt from the requirements of the California Environmental Quality
Act (CEQA) pursuant to 14 California Code of Regulations §15305 as a Class 5 exemption for
(Minor Land Divisions))
FISCAL IMPACT:
None.
BACKGROUND:
On December 14, 2017, El Segundo Planning Commission adopted Resolution No.
2832, allowing construction of a three -unit multifamily residential building and
subdivision of property into condominium air parcels on property located at 224 Whiting
Street. At the request of the applicant, the Planning Commission granted two, one-year
time extensions on January 9, 2020 and December 10, 2020. The applicant is currently
in plan check and anticipates permit issuance in the next several months to commence
construction. As such, the applicant seeks approval of a Final Map.
DISCUSSION:
Government Code § 66458 states that a Final Map must be reviewed and approved by
a jurisdiction's legislative body. The requested Final Vesting Parcel Map conforms with
the Tentative Map approved by Planning Commission, including the conditions of
approval associated with the project. Further, the Map has been reviewed and
approved by the Los Angeles County Department of Public Works, and the City
Engineer has reviewed and approved the Map for technical accuracy. Thus, City staff
Page 72 of 328
Final Parcel Map No. 74692 (EA-1207) - 224 Whiting
May 4, 2021
Page 2 of 2
has determined that Final Vesting Parcel Map No. 74692 is in substantial conformance
with the General Plan and applicable zoning and building ordinances.
Staff prepared the attached, proposed resolution approving the Vesting Final Map and
recommends that City Council adopt the resolution. After City Council approves the
Vesting Final Map, all necessary signatures will be obtained and the Map will be
recorded in the County Recorder's Office.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Engagement, and Communication; Embrace
Diversity, Equity, and Inclusion
Objective 1A: El Segundo Provides unparalleled service to internal and external
customers.
PREPARED BY:
Eduardo Schonborn, AICP, Principal Planner
APPROVED BY:
Barbara Voss, Deputy City Manager
ATTACHED SUPPORTING DOCUMENTS:
1. Vicinity Map
2. Resolution
3. Final Map No. 74692
Page 73 of 328
224 Whiting St:
V
30V'
Ell
MM �60
0
Fm
I
I
nd
Page 74 of 328
EL SEGUNDO BLVD
RESOLUTION NO.
A RESOLUTION OF THE EL SEGUNDO CITY COUNCIL APPROVING
FINAL VESTING PARCEL MAP NO. 74692 FOR ENVIRONMENTAL
ASSESSMENT NO. EA-1207, AND SUBDIVISION NO. SUB 17-05 FOR A
3-UNIT RESIDENTIAL CONDOMINIUM SUBDIVISION LOCATED AT 224
WHITING STREET.
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds and declares that:
A. On September 14, 2017, Al Loera, of Loera Designs filed an application for
Environmental Assessment No. EA-1207, Subdivision No. 17-05 for Vesting
Tentative Parcel Map No. VTPM 74692 and Adjustment No. ADJ 17-06 to
allow the construction of three residential condominium units, to subdivide
a property into condominium air space units, and to reduce the required
driveway and semi -subterranean garage widths;
B. On December 14, 2017, the Planning Commission adopted Resolution No.
2832 approving Environmental Assessment No. EA-1207, Adjustment No.
ADJ 17-06, and Subdivision No. SUB 17-05 for Vesting Tentative Parcel
Map No. 74692;
C. On October 29, 2019, the applicant filed an application for a one-year
extension of Vesting Tentative Parcel Map No. 74692;
D. On January 9, 2020, the Planning Commission adopted Resolution No.
2879, granting a one-year extension of the Map to December 14, 2020;
E. On December 10, 2020, the Planning Commission adopted Resolution No.
2879, granting a second one-year extension of the Map to December 14,
2021;
F. The Final Vesting Parcel Map now requires approval by the City Council.
SECTION 2: Final Map Findings. Based upon the entirety of the record including, without
limitation, the staff report, the City Council approves Final Vesting Map No. 82473 for the
following reasons:
A. The Final Vesting Parcel Map substantially conforms to Vesting Tentative
Parcel Map. 74692 approved by Planning Commission on December 14,
2017; and
B. The Final Vesting Parcel Map conforms to the El Segundo Municipal Code
and Subdivision Map Act (Governmental Code §§ 66410, et seq.).
-1-
Page 75 of 328
SECTION 3: Authorization. The Development Services Director, City Clerk and the
necessary City Departments are hereby authorized to sign and record said Map and take
any further actions needed to effectuate this Resolution.
SECTION 4: This Resolution will become effective immediately upon adoption and remain
effective unless superseded by a subsequent resolution.
SECTION 5: The City Clerk is directed mail a copy of this Resolution to the applicant, and
to any other person requesting a copy.
SECTION 6: This Resolution is the City Council's final decision and will become effective
immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 4th day of May, 2021.
Drew Boyles, Mayor
/_TAaI*19
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. was duly passed, approved and adopted by said City Council at a
regular meeting held on the 41" day of May, 2021, approved and signed by the Mayor,
and attested to by the City Clerk, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
-2-
Page 76 of 328
SCALE: 1" = 10'
SUBDIVIDER
DONALD DEISER
5155 WEST ROSECRANS AVENUE, #238
HAWTHORNE, CA 90250
PHONE 310-644-3600 x103
LEGAL DESCRIPTION
LOT 3, BLOCK 19,
EL SEGUNDO
M.B. 18-69
APN 4136-022-003
JOB ADDRESS
224 WHITING STREET
EL SEGUNDO, CA 90245
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PARCEL MAP NO.74692
NOTES
1. ALL EXISTING STRUCTURES TO BE
REMOVED UNLESS OTHERWISE NOTED.
2. ALL UTILITIES ARE LOCATED IN
ADJACENT STREETS.
3. THIS IS A 3 UNIT CONDOMINIUM
PROJECT.
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ELSEGUNDO
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IN THE CITY OF EL SEGUNDO
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STATE OF CALIFORNIA
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ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: STAFF PRESENTATIONS
TITLE:
Ordinance Amending the El Segundo Municipal Code to Allow Noncommercial
Backyard Beekeeping in the Single -Family Residential (R-1) Zone District
RECOMMENDATION:
1. Waive first reading and introduce an ordinance amending Titles 6, 7 and 15 of the El
Segundo Municipal Code to allow backyard beekeeping on single-family residential
zoned properties.
2. Schedule second reading for the May 18, 2021 City Council meeting.
(The proposed ordinance (zone text amendment) is exempt from further review under the California
Environmental Quality Act ("CEQA') pursuant to CEQA Guidelines § 15061(b)(3)), because it
consists only of minor revisions to existing zoning regulations and related procedures and does not
have the potential for causing a significant effect on the environment)
FISCAL IMPACT:
There are no direct fiscal impacts associated with amending the Municipal Code.
Indirect cost of staff time will be absorbed via City's adopted FY 2020-2021 Annual
Budget.
BACKGROUND:
In July 2020, an El Segundo resident approached the Environmental Committee with a
request to allow Residential Beekeeping. The current El Segundo Municipal Code lists
the keeping or maintenance of bees for any purpose as a public nuisance. Moreover,
because the City's Zoning Code is a permissive ordinance — meaning that only those
uses or facilities are allowed — unless beekeeping is allowed under the Zoning Code, it
is prohibited (ESMC § 15-1-3).
On October 6, 2020, the Environmental Committee and resident presented the request
to Council. Subsequently, Council passed a motion authorizing staff to research
considering a Residential Bee Keeping program in the City.
Page 78 of 328
Ordinance Amending the El Segundo Municipal Code t
May 4, 2021
Page 2 of 4
On February 25, 2021, City staff presented the request to Planning Commission with
the resident and Environmental Committee on hand to answer questions. The members
of the Planning Commission voted 4-0 to amend City of El Segundo Ordinance and
allow beekeeping as a permitted accessory use in the City's R-1 Zone District, provided
the beekeeper and the beehive meet all State laws.
Initially staff was looking at creating a City permit process that followed County
parameters and would be inspected by a consultant whose fees were covered by the
permit fee. Ultimately, staff and the City Attorney decided to defer to the State and
County process and simply remove bees from the list of nuisances.
Although State law requires that a beekeeper register their apiaries with the County
Agricultural Commissioner, staff has been unable to find any other regulations of
beekeeping or beekeepers at the County level, which creates enforcement issues.
Further, on April 20, 2021 City Council meeting regarding this item, there was a
discussion regarding the beekeeping regulations as well as the enforcement aspect of
placement of the hives and other issues which could be raised. Based on City Council
input, the previous version of the ordinance is hereby revised to establish the
beekeeping regulations. These regulations will allow staff to monitor the beekeeping
activities and enforce the set regulations.
DISCUSSION:
After studying what other cities do and researching options, staff (Public Works and
Development Services Departments) recommends the proposed ordinance allowing
beekeeping as a permitted accessory use in the City's single-family residential zone,
provided the beekeeper and beehive meet all State laws and the set -regulations as
follows. No City permit or license would be required for beekeeping. The proposed
ordinance does the following:
• Makes beekeeping a permitted accessory use in the R-1 Zone District, meaning
it is "by right" provided such use complies with the other requirements specified
in the Code;
• Restricts beehives to noncommercial purposes only;
• Requires that beekeepers comply with the State's registration requirements;
• Requires that beekeepers adhere to the following requirements:
Hive Placement Reauirements:
1. Hives may only be maintained on single-family R-1 Zone residential property.
Page 79 of 328
Ordinance Amending the El Segundo Municipal Code t
May 4, 2021
Page 3 of 4
2. No more than three hives may be maintained on any single-family residential
property in rear yard areas only..
3. All bee colonies shall be kept in inspectable hives consisting of moveable frames
and combs.
4. Hives must be kept in sound and usable condition at all times.
5. Any person intending to maintain any bee hive on any single-family residential
property within the City must first register with County Agricultural Commissioner.
6. Hives shall be located at least five feet from all property lines.
7. Hive entrances shall face away from or parallel to the nearest property line(s).
8. Hives must either be screened so that the bees must fly over a six-foot barrier,
which may be vegetative, before leaving the property, or be placed at least eight
feet above the adjacent ground level.
Hive Management Requirements:
1. Hives shall be continually managed to provide adequate living space for their
resident bees to prevent swarming.
2. Hives shall be requeened at least once every two years to prevent swarming.
3. A water source for bees shall be provided at all times on the property where the
bees are kept to discourage bee visitation at swimming pools, hose bibs and
other water sources on adjacent public or private property.
4. Hive maintenance materials or equipment must be stored in a sealed container
or placed within a building or other bee -proof enclosure.
Nuisance. Bees or hives shall be considered a public nuisance when any of the
followina occurs:
1. Colonies of bees exhibit defensive or objectionable behavior, or interfere with the
normal use of neighboring properties.
2. Colonies of bees swarm.
3. Bees or hives do not conform to this Code.
4. Hives become abandoned by resident bees or by the owner.
Prohibits beekeeping that violates any of the above requirements and bees exhibiting
defensive or objectionable behavior or interfering with the normal use of neighboring
property.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 2: Support Community Safety and Preparedness
Objective A: El Segundo is a safe and prepared City.
Page 80 of 328
Ordinance Amending the El Segundo Municipal Code t
May 4, 2021
Page 4 of 4
Goal 4: Develop and Maintain Quality Infrastructure and Technology
Objective 4A: El Segundo's physical infrastructure supports an appealing, safe and
effective community.
PREPARED BY:
Jasmine Allen, Sr. Management Analyst
APPROVED BY:
Barbara Voss, Deputy City Manager
ATTACHED SUPPORTING DOCUMENTS:
1. CC beekeeping ordinance revised - 04.28.21
2. Bee Keeping Planning Commission Resolution - 2.9.21 Final
Page 81 of 328
ORDINANCE NO.
AN ORDINANCE AMENDING TITLES 6, 7 AND 15 OF THE EL
SEGUNDO MUNICIPAL CODE TO ALLOW NONCOMMERIAL,
BACKYARD BEEKEEPING IN THE SINGLE-FAMILY RESIDENTIAL (R-
1) ZONE DISTRICT.
The City Council of the City of El Segundo does ordain as follows:
SECTION 1. The City Council finds and determines as follows:
A. Currently, noncommercial beekeeping is not expressly allowed in the City
of El Segundo;
B. The City Council desires to amend the City's Code to allow noncommercial,
backyard beekeeping on single-family residential zoned properties, subject
to the following requirements:
1- Hive Placement Requirements:
(a) Hives may only be maintained on single-family R-1 Zone residential property.
(b) No more than three hives may be maintained on any single-family residential
property in rear yard areas only..
(c) All bee colonies shall be kept in inspectable hives consisting of moveable frames
and combs.
(d) Hives must be kept in sound and usable condition at all times.
(e) Any person intending to maintain any bee hive on any single-family residential
property within the City must first register with County Agricultural Commissioner.
(f) Hives shall be located at least five feet from all property lines.
(g) Hive entrances shall face away from or parallel to the nearest property line(s).
(h) Hives must either be screened so that the bees must fly over a six-foot barrier,
which may be vegetative, before leaving the property, or be placed at least eight feet above
the adjacent ground level.
2- Hive Management Requirements:
(a) Hives shall be continually managed to provide adequate living space for
their resident bees to prevent swarming.
(b) Hives shall be requeened at least once every two years to prevent swarming.
Page 1
Page 82 of 328
(c) A water source for bees shall be provided at all times on the property where
the bees are kept to discourage bee visitation at swimming pools, hose bibs and
other water sources on adjacent public or private property.
(d) Hive maintenance materials or equipment must be stored in a sealed
container or placed within a building or other bee -proof enclosure.
3- Nuisance. Bees or hives shall be considered a public nuisance when any of the
following occurs:
(a) Colonies of bees exhibit defensive or objectionable behavior, or interfere with
the normal use of neighboring properties.
(b) Colonies of bees swarm.
(c) Bees or hives do not conform to this Code.
(d) Hives become abandoned by resident bees or by the owner.
SECTION 2: General Plan Findings. As required under Government Code Section
65860, the ESMC amendments proposed by the Ordinance are consistent with the El
Segundo General Plan and the Ordinance is not anticipated to adversely impact the
General Plan goals, objectives and policies.
SECTION 3: Zone Text Amendment Findings. In accordance with ESMC Chapter 15-26
and based on the findings set forth in Section 2, the proposed zone text amendment is
consistent with and necessary to carry out the general purpose of ESMC Tile 15 as
follows:
A. It is consistent with the purpose of the ESMC, which is to serve the public
health, safety, and general welfare and to provide the economic and social
advantages resulting from an orderly planned use of land resources; and
B. It is necessary to facilitate the development process and ensure the orderly
location of uses within the City.
SECTION 4: Environmental Review. Pursuant to the authority and criteria of the
California Environmental Quality Act (CEQA), it has been determined that the proposed
ordinance does not have the potential to cause significant effects to the environment and,
therefore, the project is exempt from CEQA pursuant to 14 Cal. Code Regs. §
15061(b)(3). This proposed ordinance would not result in any development or changes to
the physical environment.
SECTION 5. El Segundo Municipal Code ("ESMC") § 7-1-4 is amended as follows:
7-1-4: NUISANCES; DESIGNATED:
Page 2
Page 83 of 328
It is unlawful and it is declared to be a public nuisance for any person
owning, leasing, occupying, or having charge or possession of any property
within the city to maintain such property in such a manner that any of the
conditions listed below are found to exist. This section is not the exclusive
definition or designation of what constitutes a nuisance within this city. It
supplements and is in addition to other regulatory codes, statutes, and
ordinances enacted by the city, state, or any other legal entity or agency
having jurisdiction. Designated public nuisances include the following:
A. A violation of any provision of applicable law including, without
limitation, the El Segundo municipal code;
B. Any land, the topography, geology, or configuration of which, whether
in a natural state or as a result of grading operations, excavations, fill, or
other alteration, interferes with the established drainage pattern over the
property or from adjoining or other properties which does or may result in
erosion, subsidence, or surface water drainage problems of such
magnitude as to be injurious to public health, safety and welfare or to
neighboring properties;
C. Any building or structure which is partially destroyed, damaged,
abandoned, boarded up, dilapidated, or permitted to remain in a state of
partial construction;
D. The failure to secure and maintain against public access all doorways,
windows, and other openings into vacant or abandoned buildings or
structures;
E. Painted buildings and walls, retaining walls, fences or structures that
require repainting, or buildings, walls, fences, or structures upon which the
condition of the paint has become so deteriorated as to permit decay,
excessive checking, cracking, peeling, chalking, dry rot, warping or termite
infestation;
F. Any premises, building or structure, wall, fence, pavement, or walkway
which is painted in a garish manner or is out of harmony or conformity with
the standards of adjacent properties;
G. Any building or structure, wall, fence, pavement, or walkway upon
which any graffiti, including paint, ink, chalk, dye, or other similar marking
substances, is allowed to remain for more than twenty four (24) consecutive
hours;
H. Any wall, fence, gate, or hedge that is damaged, broken, or a hazard or
is maintained in violation of this code;
Page 3
Page 84 of 328
I. Broken windows;
J. Any overgrown, dead, decayed, diseased or hazardous tree, weeds,
vegetation, or debris, which:
1. May harbor rats, vermin, or other disease carriers;
2. Is maintained so as to cause an obstruction to the vision of motorists
or a hazardous condition to pedestrians or vehicle traffic;
3. Creates a danger or attractive nuisance to the public;
4. Detrimentally affects neighboring properties or property values; or
5. Constitutes a fire hazard;
K. Building exteriors, roofs, landscaping, grounds, walls, retaining and crib
walls, fences, driveways, parking lots, planters, sidewalks, or walkways
which are maintained in such condition so as to become defective,
unsightly, cracked or no longer viable;
L. The accumulation of dirt, litter, trash, junk, feces, or debris in doorways,
adjoining sidewalks, walkways, courtyards, patios, parking lots, planters,
landscaped or other areas;
M. Any premises upon which there is or is permitted to be,
1. Lumber, building materials, rubble, broken asphalt or concrete,
containers, or other similar materials, except where construction is
occurring under a valid permit;
2. Junk, solid waste, vegetation, salvage materials, scrap metals,
hazardous waste, broken or neglected machinery, dirt or fill material
deposited or stored contrary to any law, automobile parts, except within a
commercial business lawfully engaged in retail sales;
3. Sinks, fixtures or equipment, appliances or furniture, except lawn
furniture in residential yards and new or used furniture lawfully stored or
displayed in connection with a valid business engaged in the sale or
purchase of the same;
4. Inoperative vehicles, except where permitted by the zoning code;
5. Deteriorated driveways and parking lots, including those containing
potholes, or cracks;
6. Abandoned, broken, unused, neglected or unprotected equipment
and machinery, ponds, reservoirs and pools, whether or not the same
contains any water or liquid, excavations, abandoned wells, shafts,
basements, foundations, or other holes, abandoned refrigerators or other
appliances, abandoned motor vehicles, any unsound structure, skateboard
ramps, or accumulated lumber, solid waste, junk, or vegetation which may
reasonably attract children to such abandoned or neglected conditions;
7. Temporary service bins or construction debris storage bins stored
on a public street or on private property, except where permitted by this
code;
Page 4
Page 85 of 328
8. Any garbage can, solid waste container, solid waste, packing box or
junk placed or maintained so as to be visible from neighboring properties or
the public right of way, except for those times scheduled for collection, in
accordance with this code;
9. Any property with accumulations of grease, oil, or other hazardous
material on paved or unpaved surfaces, driveways, buildings, walls, or
fences, or from which any such material flows or seeps onto any public
street or other public or private property, or which is likely to seep or migrate
into the underground water table;
10. Any front yard, parkway, or landscaped setback area which lacks
turf, other planted material, decorative rock, bark, or planted ground cover
or covering, so as to cause excessive dust or allow the accumulation of
debris;
11. Any condition of vegetation overgrowth which encroaches into,
over, or upon any public right of way including, without limitation, streets,
alleys, or sidewalks, so as to constitute either a danger to the public safety
or property or any impediment to public travel;
12. Animals, livestock, poultry,, ^�s kept, bred, or maintained for
any purpose and in violation of this code;
13. The keeping of bees in violation of State or local rules and
regulations ; or colonies of bees exhibiting defensive or objectionable
behavior or interfering with the normal use of neighboring property;
14. Any property, or any building or structure thereon, maintained
in such condition so that it is defective, unsightly or in such condition of
deterioration or disrepair that it causes or will cause an ascertainable
diminution of the property values of surrounding properties or be otherwise
materially detrimental to adjacent and nearby properties and improvements;
44. 15. Any building or portion thereof maintained in a manner which
constitutes a substandard building pursuant to Health and Safety Code
section 17920.3.
SECTION 6. Section 6-2-2 of the ESMC is amended to add the following
definitions in proper alphabetical order:
"Bee" means any stage of the common domestic honey bee, Apis Mellifera
species.
"Bee hive" means an enclosure or structure used for the housing of a Bee
colony.
SECTION 7. Title 6 of the ESMC is amended to add a new chapter as follows:
"Chapter 5. Beekeeping.
Section 6-5-1. General Requirements.
Page 5
Page 86 of 328
A. Bee hives may only be maintained in the rear yard on a single-family
residential property. For purposes of this Chapter, the term "rear yard"
has the same meaning as defined in Section 15-1-6 of this Code.
B. A maximum of three bee hives may be maintained on any single-family
zoned property, in the rear yards only, for noncommercial purposes.
C. All bee colonies shall be kept in inspectable hives consisting of moveable
frames and combs.
D. Hives must be kept in sound and usable condition at all times.
E. Any person intending to place and maintain any bee hive on a single-
family residential zoned property within the City must first register with
County Agricultural Commissioner.
F. Hives shall be located at least five feet from all property lines.
G. Hive entrances shall face away from or parallel to the nearest property line(s).
H. Hives must either be screened so that the bees must fly over a six-foot barrier,
which may be vegetative, before leaving the property, or be placed at least
eight feet above the adjacent ground level.
Section 6-5-2. Hive Management Requirements.
A. Hives shall be continually managed to provide adequate living space for their
resident bees to prevent swarming.
B. Hives shall be requeened at least once every two years to prevent swarming.
C. A water source for bees shall be provided at all times on the property where the bees
are kept to discourage bee visitation at swimming pools, hose bibs and other water
sources on adjacent public or private property.
D. Hive maintenance materials or equipment must be stored in a sealed container or
placed within a building or other bee -proof enclosure.
Section 6-5-3. Nuisance.
A. Notwithstanding the requirements contained in Section 6-5-1 and Section 6-5-2,
bees or hives shall be considered a public nuisance when any of the following
occurs:
1. Colonies of bees exhibit defensive or objectionable behavior, or interfere with the
normal use of neighboring properties.
Page 6
Page 87 of 328
2. Colonies of bees swarm.
3. Bees or hives do not conform to this Code.
4. Hives become abandoned by resident bees or by the owner."
SECTION 8. Section 15-4A-3 of the ESMC is amended as follows:
15-4A-3: PERMITTED ACCESSORY USES:
A. Any use customarily incidental to a permitted use.
B. Accessory dwelling unit, pursuant to article E, "Accessory Dwelling Units," of
this chapter.
C. Detached accessory buildings and structures, including private garages.
D. Play structures.
E. Beekeeping, provided such accessory use complies with chapter 5 of
title 6 of this code.
€F. Other similar uses approved by the Director, as provided by chapter 22 of
this title.
SECTION 9. Validity of Previous Code Sections. If the entire Ordinance or its application
is deemed invalid by a court of competent jurisdiction, any repeal of the ESMC or other
regulation by this Ordinance will be rendered void and cause such ESMC provision or
other regulation to remain in full force and effect for all purposes.
SECTION 10. Enforceability. Repeal or amendment of any previous Code Sections does
not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and
imposition of penalties for any violation occurring before this Ordinance's effective date.
Any such repealed part will remain in full force and effect for sustaining action or
prosecuting violations occurring before the effective date of this Ordinance.
SECTION 11. Severability. If any part of this Ordinance or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that such invalidity will not
affect the effectiveness of the remaining provision or application and, to this end, the
provisions of this Ordinance are severable.
SECTION 12. The City Clerk, or her duly appointed deputy, is directed to certify the
passage and adoption of this Ordinance; cause it to be entered into the City of El
Segundo's book of original ordinances; make a note of the passage and adoption in the
records of this meeting; and, within fifteen (15) days after the passage and adoption of
this Ordinance, cause it to be published or posted in accordance with California law.
Page 7
Page 88 of 328
SECTION 13. Effective Date. This Ordinance will become effective on the 31St day
following its passage and adoption.
PASSED AND ADOPTED this day of 12021.
Drew Boyles, Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. was duly introduced by said City Council at a regular meeting held
on the day of , 2021, and was duly passed and adopted by said City
Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a
regular meeting of said Council held on the day of 2021, and the same
was so passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
'm
Page 89 of 328
RESOLUTION NO. 2891
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
EL SEGUNDO RECOMMENDING THAT THE CITY COUNCIL ADOPT AN
ORDINANCE AMENDING TITLES 6, 7, AND 15 OF THE EL SEGUNDO
MUNICIPAL CODE TO ALLOW BEEKEEPING ON SINGLE-FAMILY
RESIDENTIAL ZONED PROPERTIES.
(Environmental Assessment No. 1301 and
Zone Text Amendment No. 21-01)
The Planning Commission of the City of El Segundo does resolve as follows:
SECTION 1. The City Council finds and determines as follows:
A. Currently, noncommercial beekeeping is not expressly allowed in the City
of El Segundo;
B. The City Council desires to amend the City's Code to allow noncommercial,
backyard beekeeping on single-family residential zoned properties, subject
to certain requirements.
SECTION 2: General Plan Findings. As required under Government Code Section
65860, the ESMC amendments proposed by the Ordinance are consistent with the El
Segundo General Plan and the Ordinance is not anticipated to adversely impact the
General Plan goals, objectives and policies.
SECTION 3: Zone Text Amendment Findings. In accordance with ESMC Chapter 15-26
and based on the findings set forth in Section 2, the proposed zone text amendment is
consistent with and necessary to carry out the general purpose of ESMC Tile 15 as
follows:
A. It is consistent with the purpose of the ESMC, which is to serve the public
health, safety, and general welfare and to provide the economic and social
advantages resulting from an orderly planned use of land resources; and
B. It is necessary to facilitate the development process and ensure the orderly
location of uses within the City.
SECTION 5: Environmental Assessment. Based on the facts set forth in Section 2, the
Planning Commission finds that the zone text amendment is exempt from further review
under the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines §
15061(b)(3)), because it consists only of minor revisions to existing zoning regulations
and related procedures and does not have the potential for causing a significant effect on
the environment.
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SECTION 6: Recommendation. The Planning Commission recommends that the City
Council adopt the ordinance set forth in attached Exhibit A, which is incorporated into this
resolution by reference.
SECTION 7: Reliance on Record. Each and every one of the findings and determination
in this Resolution are based on the competent and substantial evidence, both oral and
written, contained in the entire record relating to the project. The findings and
determinations constitute the independent findings and determinations of the Planning
Commission in all respects; and
SECTION 8: Limitations. The Planning Commission's analysis and evaluation of the
project is based on information available at the time of the decision. It is inevitable that in
evaluating a project that absolute and perfect knowledge of all possible aspects of the
project will not exist. In all instances, best efforts have been made to form accurate
assumptions.
SECTION 9: The Commission secretary is directed to mail a copy of this Resolution to
any person requesting a copy.
SECTION 12: This Resolution will become effective immediately upon adoption and will
remain effective unless repealed or superseded.
PASSED, APPROVED AND ADOPTED this 25t" day of February, 2021.
ATTEST:
Sam Lee, Secretary
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney
la
Ryan Baldino, Chairperson
City of El Segundo Planning Commission
David King, Assistant City Attorney
Baldino -
Newman -
Hoeschler -
Keldorf -
Page 2
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EXHIBIT "A"
DRAFT ORDINANCE NO.
AN ORDINANCE AMENDING TITLES 6, 7 AND 15 OF THE EL
SEGUNDO MUNICIPAL CODE TO ALLOW NONCOMMERIAL,
BACKYARD BEEKEEPING ON SINGLE-FAMILY RESIDENTIAL ZONED
PROPERTIES.
The City Council of the City of El Segundo does ordain as follows:
SECTION 1. The City Council finds and determines as follows:
C. Currently, noncommercial beekeeping is not expressly allowed in the City
of El Segundo;
D. The City Council desires to amend the City's Code to allow noncommercial,
backyard beekeeping on single-family residential zoned properties, subject
to certain requirements.
SECTION 2: General Plan Findings. As required under Government Code Section
65860, the ESMC amendments proposed by the Ordinance are consistent with the El
Segundo General Plan and the Ordinance is not anticipated to adversely impact the
General Plan goals, objectives and policies.
SECTION 3: Zone Text Amendment Findings. In accordance with ESMC Chapter 15-26
and based on the findings set forth in Section 2, the proposed zone text amendment is
consistent with and necessary to carry out the general purpose of ESMC Tile 15 as
follows:
A. It is consistent with the purpose of the ESMC, which is to serve the public
health, safety, and general welfare and to provide the economic and social
advantages resulting from an orderly planned use of land resources; and
B. It is necessary to facilitate the development process and ensure the orderly
location of uses within the City.
SECTION 4: Environmental Review. Pursuant to the authority and criteria of the
California Environmental Quality Act (CEQA), it has been determined that the proposed
ordinance does not have the potential to cause significant effects to the environment and,
therefore, the project is exempt from CEQA pursuant to 14 Cal. Code Regs. §
15061(b)(3). This proposed ordinance would not result in any development or changes to
the physical environment.
SECTION 5. El Segundo Municipal Code ("ESMC") § 7-1-4 is amended as follows:
7-1-4: NUISANCES; DESIGNATED:
Page 3
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It is unlawful and it is declared to be a public nuisance for any person
owning, leasing, occupying, or having charge or possession of any property
within the city to maintain such property in such a manner that any of the
conditions listed below are found to exist. This section is not the exclusive
definition or designation of what constitutes a nuisance within this city. It
supplements and is in addition to other regulatory codes, statutes, and
ordinances enacted by the city, state, or any other legal entity or agency
having jurisdiction. Designated public nuisances include the following:
A. A violation of any provision of applicable law including, without
limitation, the El Segundo municipal code;
B. Any land, the topography, geology, or configuration of which, whether
in a natural state or as a result of grading operations, excavations, fill, or
other alteration, interferes with the established drainage pattern over the
property or from adjoining or other properties which does or may result in
erosion, subsidence, or surface water drainage problems of such
magnitude as to be injurious to public health, safety and welfare or to
neighboring properties;
C. Any building or structure which is partially destroyed, damaged,
abandoned, boarded up, dilapidated, or permitted to remain in a state of
partial construction;
D. The failure to secure and maintain against public access all doorways,
windows, and other openings into vacant or abandoned buildings or
structures;
E. Painted buildings and walls, retaining walls, fences or structures that
require repainting, or buildings, walls, fences, or structures upon which the
condition of the paint has become so deteriorated as to permit decay,
excessive checking, cracking, peeling, chalking, dry rot, warping or termite
infestation;
F. Any premises, building or structure, wall, fence, pavement, or walkway
which is painted in a garish manner or is out of harmony or conformity with
the standards of adjacent properties;
G. Any building or structure, wall, fence, pavement, or walkway upon
which any graffiti, including paint, ink, chalk, dye, or other similar marking
substances, is allowed to remain for more than twenty four (24) consecutive
hours;
H. Any wall, fence, gate, or hedge that is damaged, broken, or a hazard or
is maintained in violation of this code;
Page 4
Page 93 of 328
I. Broken windows;
J. Any overgrown, dead, decayed, diseased or hazardous tree, weeds,
vegetation, or debris, which:
1. May harbor rats, vermin, or other disease carriers;
2. Is maintained so as to cause an obstruction to the vision of motorists
or a hazardous condition to pedestrians or vehicle traffic;
3. Creates a danger or attractive nuisance to the public;
4. Detrimentally affects neighboring properties or property values; or
5. Constitutes a fire hazard;
K. Building exteriors, roofs, landscaping, grounds, walls, retaining and crib
walls, fences, driveways, parking lots, planters, sidewalks, or walkways
which are maintained in such condition so as to become defective,
unsightly, cracked or no longer viable;
L. The accumulation of dirt, litter, trash, junk, feces, or debris in doorways,
adjoining sidewalks, walkways, courtyards, patios, parking lots, planters,
landscaped or other areas;
M. Any premises upon which there is or is permitted to be,
1. Lumber, building materials, rubble, broken asphalt or concrete,
containers, or other similar materials, except where construction is
occurring under a valid permit;
2. Junk, solid waste, vegetation, salvage materials, scrap metals,
hazardous waste, broken or neglected machinery, dirt or fill material
deposited or stored contrary to any law, automobile parts, except within a
commercial business lawfully engaged in retail sales;
3. Sinks, fixtures or equipment, appliances or furniture, except lawn
furniture in residential yards and new or used furniture lawfully stored or
displayed in connection with a valid business engaged in the sale or
purchase of the same;
4. Inoperative vehicles, except where permitted by the zoning code;
5. Deteriorated driveways and parking lots, including those containing
potholes, or cracks;
6. Abandoned, broken, unused, neglected or unprotected equipment
and machinery, ponds, reservoirs and pools, whether or not the same
contains any water or liquid, excavations, abandoned wells, shafts,
basements, foundations, or other holes, abandoned refrigerators or other
appliances, abandoned motor vehicles, any unsound structure, skateboard
ramps, or accumulated lumber, solid waste, junk, or vegetation which may
reasonably attract children to such abandoned or neglected conditions;
7. Temporary service bins or construction debris storage bins stored
on a public street or on private property, except where permitted by this
code;
Page 5
Page 94 of 328
8. Any garbage can, solid waste container, solid waste, packing box or
junk placed or maintained so as to be visible from neighboring properties or
the public right of way, except for those times scheduled for collection, in
accordance with this code;
9. Any property with accumulations of grease, oil, or other hazardous
material on paved or unpaved surfaces, driveways, buildings, walls, or
fences, or from which any such material flows or seeps onto any public
street or other public or private property, or which is likely to seep or migrate
into the underground water table;
10. Any front yard, parkway, or landscaped setback area which lacks
turf, other planted material, decorative rock, bark, or planted ground cover
or covering, so as to cause excessive dust or allow the accumulation of
debris;
11. Any condition of vegetation overgrowth which encroaches into,
over, or upon any public right of way including, without limitation, streets,
alleys, or sidewalks, so as to constitute either a danger to the public safety
or property or any impediment to public travel;
12. Animals, livestock, poultry,, ^�s kept, bred, or maintained for
any purpose and in violation of this code;
13. The keeping of bees in violation of State or County of Los
Angeles law; or colonies of bees exhibiting defensive or objectionable
behavior or interfering with the normal use of neighboring properties;
14. Any property, or any building or structure thereon, maintained
in such condition so that it is defective, unsightly or in such condition of
deterioration or disrepair that it causes or will cause an ascertainable
diminution of the property values of surrounding properties or be otherwise
materially detrimental to adjacent and nearby properties and improvements;
44. 15. Any building or portion thereof maintained in a manner which
constitutes a substandard building pursuant to Health and Safety Code
section 17920.3.
SECTION 6. Section 6-2-2 of the ESMC is amended to add the following
definitions in proper alphabetical order:
"Bee" means any stage of the common domestic honey bee, Apis Mellifera
species.
"Bee hive" means an enclosure or structure used for the housing of a Bee
colony.
SECTION 7. Title 6 of the ESMC is amended to add a new chapter as follows:
"Chapter 5. Beekeeping.
Page 95 of 328
Section 6-5-1. General Requirements.
A. Bee hives may only be maintained in the rear yard on a single-family
residential property. For purposes of this Chapter, the term "rear yard"
has the same meaning as defined in Section 15-1-6 of this Code.
B. A maximum of three bee hives may be maintained for noncommercial
purposes.
C. Any person intending to place and maintain any bee hive on a single-
family residential property within the City must comply with all State and
County of Los Angeles laws, including, but not limited to, registration of
both the beekeeper and the apiary."
SECTION 8. Section 15-4A-3 of the ESMC is amended as follows:
15-4A-3: PERMITTED ACCESSORY USES:
A. Any use customarily incidental to a permitted use.
B. Accessory dwelling unit, pursuant to article E, "Accessory Dwelling Units," of
this chapter.
C. Detached accessory buildings and structures, including private garages.
D. Play structures.
E. Beekeeping, provided such accessory use complies with chapter 5 of
title 6 of this code.
€F. Other similar uses approved by the Director, as provided by chapter 22 of
this title.
SECTION 9. Validity of Previous Code Sections. If the entire Ordinance or its application
is deemed invalid by a court of competent jurisdiction, any repeal of the ESMC or other
regulation by this Ordinance will be rendered void and cause such ESMC provision or
other regulation to remain in full force and effect for all purposes.
SECTION 10. Enforceability. Repeal or amendment of any previous Code Sections
does not affect any penalty, forfeiture, or liability incurred before, or preclude
prosecution and imposition of penalties for any violation occurring before this
Ordinance's effective date. Any such repealed part will remain in full force and
effect for sustaining action or prosecuting violations occurring before the effective
date of this Ordinance.
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SECTION 11. Severability. If any part of this Ordinance or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that such invalidity will not
affect the effectiveness of the remaining provision or application and, to this end, the
provisions of this Ordinance are severable.
SECTION 12. The City Clerk, or her duly appointed deputy, is directed to certify the
passage and adoption of this Ordinance; cause it to be entered into the City of El
Segundo's book of original ordinances; make a note of the passage and adoption in the
records of this meeting; and, within fifteen (15) days after the passage and adoption of
this Ordinance, cause it to be published or posted in accordance with California law.
SECTION 13. Effective Date. This Ordinance will become effective on the 31st day
following its passage and adoption.
PASSED AND ADOPTED this day of , 2021.
Drew Boyles, Mayor
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO 1
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. was duly introduced by said City Council at a regular meeting held
on the day of , 2021, and was duly passed and adopted by said City
Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a
regular meeting of said Council held on the day of 2021, and the same
was so passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
APPROVED AS TO FORM:
'm
Page 97 of 328
Mark D. Hensley, City Attorney
Page 9
Page 98 of 328
{:ICVoy
ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: STAFF PRESENTATIONS
TITLE:
Comprehensive Annual Financial Report for Fiscal Year 2019-2020
RECOMMENDATION:
Receive and file.
FISCAL IMPACT:
None.
BACKGROUND:
The Comprehensive Annual Financial Report for fiscal year ending September 30,
2020, is submitted to the City Council for review. A representative from the City's audit
firm, CLA (CliftonLarsonAllen) LLP, formerly White Nelson Diehl Evans (WNDE) LLP,
will provide a brief virtual presentation on the audit and will be available to answer
questions.
DISCUSSION:
This annual report consists of three sections: the introductory section, the financial
section, and the statistical section. The introductory section includes the letter of
transmittal from the City of El Segundo's ("City") Chief Financial Officer, the
organizational chart, a listing of City officials, and the prior year Government Finance
Officers Association award. The financial section includes the following key discussions:
the independent auditors' report on the financial statements, management's discussion
and analysis (MD&A), the basic financial statements, optional combining statements for
non -major governmental funds, and required supplementary information. The MD&A
discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements are comprised of three
components: 1) government -wide financial statements 2) fund financial statements, and
3) notes to the financial statements. This report also contains supplementary
information in addition to the basic financial statements. The statistical section includes
Page 99 of 328
Comprehensive Annual Financial Report for FY 2019-2020
May 4, 2021
Page 2 of 3
presentations on financial trends, revenue capacity of the City, debt capacity of the City,
demographic and economic information, and operating statistics of the City.
The City's net position from governmental activities decreased by $288,793. The
decrease in net position is attributed to an overall decrease in revenues compared to
the prior year due to the global pandemic COVID-19 and the economic impacts that
resulted from the federal, state, and Los Angeles County travel restrictions.
The cost of all governmental activities for the year was $84.1 million. The taxes that
ultimately financed these activities were $60.6 million. The remaining portion of the
costs were paid by those who directly benefited from the programs ($7.2 million), or by
other governments and organizations that subsidized certain programs with grants and
contributions ($10.6 million), interest and rental income ($3.4 million), miscellaneous
other revenues ($2.0 million), and $288,793 in use of net position.
Overall, the City's governmental revenues totaled $83.8 million. Of these revenues,
$17.8 million came from program revenues, business license taxes of $12.3 million, other
revenues and taxes of $12.2 million, sales and use taxes was $12.0 million, property taxes
of $11.8 million, $8.8 million came from transient occupancy taxes, utility user taxes of $5.5
million, and franchise taxes of $3.4 million.
The City's net position from business activities increased by $581,551. The increase in
net position is attributed to revenues ($32.4 million) being slightly higher than expenses
($31.8 million). The charges for services were down by $7.8 million compared to the
prior year due to COVID-19's negative impact on the economy, resulting in many
businesses in the City being shut down. This resulted in lower revenues in the Water
and Wastewater business operations. The expenses were lower in the Water
operations by $1.5 million compared to the prior year due to a reduction in the purchase
of water from West Basin MWD. The expenses in the Wastewater Operations were up
by $1.6 million due to the increase in the costs associated with Hyperion (City of L.A.)
Wastewater Treatment Facility which treats wastewater for residents and businesses
West of Pacific Coast Highway.
CLA LLP completed the audit of the City and issued an unmodified ("clean") opinion on
the City's financial statements for the year ending September 30, 2020.
Copies of the audit have been provided to the City Council Members with their agenda
packages. Other interested individuals may obtain a copy of the audit from the Finance
Department or through the City's website at www.elsegundo.org.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 5: Champion Economic Development and Fiscal Sustainability
Objective 5B: El Segundo approaches its work in a financially strategic and responsible
way.
Page 100 of 328
Comprehensive Annual Financial Report for FY 2019-2020
May 4, 2021
Page 3 of 3
PREPARED BY:
Joseph Lillio, Chief Financial Officer
APPROVED BY:
Barbara Voss, Deputy City Manager
ATTACHED SUPPORTING DOCUMENTS:
1. City of El Segundo - 2020 Annual Report Final
2. City of El Segundo - 2020 GANN Report
Page 101 of 328
2019-2020
COMPREHENSIVE ANNUAL FINANCIAL
FISCAL YEAR -ENDED SEPTEMBER 3(
Page 102 of 328
CITY OF EL SEGUNDO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2020
Prepared by the City's Finance Department
Page 104 of 328
This page intentionally left blank
Page 105 of 328
City of El Segundo
Comprehensive Annual Financial Report
For the Year Ended September 30, 2020
Table of Contents
INTRODUCTORY SECTION (Unaudited)
Page
Letterof Transmittal............................................................................................................................................ i
OrganizationChart.............................................................................................................................................. v
Officials of the City of El Segundo, California.................................................................................................. vi
Government Finance Officers Association Award........................................................................................... vii
FINANCIAL SECTION
Independent Auditors' Report on the Financial Statements ..........................
................... 1
Management's Discussion and Analysis (Required Supplementary Information (Unaudited) ................. 5
Financial Statements:
Government -Wide Financial Statements:
Statementof Net Position..................................................................................................................... 20
Statementof Activities......................................................................................................................... 22
Fund Financial Statements:
Governmental Fund Financial Statements:
BalanceSheet................................................................................................................................ 28
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position............................................................... 29
Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................ 30
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the
Government -Wide Statement of Activities and Changes in Net Position ............................... 31
Proprietary Fund Financial Statements:
Statementof Net Position..................................................................................................................... 34
Statement of Revenues, Expenses, and Changes in Net Position........................................................ 38
Statementof Cash Flows...................................................................................................................... 40
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position.......................................................................
Index to Notes to the Basic Financial Statements..................................................................................
Notes to the Basic Financial Statements................................................................................................
46
49
51
Page 106 of 328
City of El Segundo
Comprehensive Annual Financial Report
For the Year Ended September 30, 2020
Table of Contents (Continued)
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule - General Fund..........................................................
Note to the Budgetary Comparison Schedule.................................................................
Schedule of Changes in Net Pension Liability and Related Ratios - Ca1PERS
Miscellaneous Rate Plan..........................................................................................
Schedule of Changes in Net Pension Liability and Related Ratios - Ca1PERS Safety
RatePlan..................................................................................................................
Schedule of the City's Proportionate Share of the Net Pension Liability and Related
Ratios - Ca1PERS Safety Rate Plan.........................................................................
Schedule of Changes in Net Pension Liability and Related Ratios - Public Agency
Retirement System Defined Benefit Plan.................................................................
Schedule of Contributions - Ca1PERS Miscellaneous Rate Plan ....................................
Schedule of Contributions - Ca1PERS Safety Rate Plan ................................................
Schedule of Contributions - Public Agency Retirement System Defined Benefit Plan.
Schedule of Changes in Total OPEB Liability and Related Ratios ................................
Schedule of Contributions - OPEB Plan.........................................................................
Supplementary Information:
Pate
........................ 106
........................ 107
........................ 108
....................... 110
......................... 112
........................ 113
........................ 114
........................ 116
........................ 118
........................ 120
........................ 121
General Funds:
CombiningBalance Sheet.................................................................................................................. 124
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances ........................... 126
Nonmajor Governmental Funds:
CombiningBalance Sheet.................................................................................................................. 133
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .......................... 138
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
State Gas Tax Special Revenue Fund.......................................................................................... 143
Residential Sound Insulation Special Revenue Fund.................................................................. 144
Certified Union Program Agencies Special Revenue Fund ......................................................... 145
Community Development Block Grant Special Revenue Fund .................................................. 146
Asset Forfeiture Special Revenue Fund...................................................................................... 147
PropA Special Revenue Fund..................................................................................................... 148
Prop C Special Revenue Fund..................................................................................................... 149
Traffic Safety Special Revenue Fund.......................................................................................... 150
Air Pollution Reduction Special Revenue Fund.......................................................................... 151
SB 821 Special Revenue Fund.................................................................................................... 152
Page 107 of 328
City of El Segundo
Comprehensive Annual Financial Report
For the Year Ended September 30, 2020
Table of Contents
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):
Page
Nonmajor Governmental Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Continued):
C.O.P.S. Special Revenue Fund..................................................................................................
153
Measure R Special Revenue Fund...............................................................................................
154
Federal Grants Special Revenue Fund.........................................................................................
155
State Grants Special Revenue Fund.............................................................................................
156
PSAF Property Tax Public Safety Special Revenue Fund..........................................................
157
Senior Housing Special Revenue Fund.......................................................................................
158
Measure M Special Revenue Fund..............................................................................................
159
SB1 Special Revenue Fund........................................................................................................
160
Facility Lease Debt Service Fund................................................................................................
161
Capital Improvements Capital Projects Fund..............................................................................
162
Internal Service Funds:
Combining Statement of Net Position................................................................................................ 164
Combining Statement of Revenues, Expenses and Changes in Net Position ..................................... 165
Combining Statement of Cash Flows................................................................................................. 166
Fiduciary Funds:
Statement of Changes in Fiduciary Assets and Liabilities....................................................................... 168
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents..................................................................................................... 171
Financial Trends:
Net Position by Component - Last Ten Fiscal Years...................................................................................... 172
Changes in Net Position - Last Ten Fiscal Years............................................................................................ 174
Fund Balances of Governmental Funds - Last Ten Fiscal Years.................................................................... 176
Changes in Fund Balances - Governmental Funds - Last Ten Fiscal Years ................................................... 178
Page 108 of 328
City of El Segundo
Comprehensive Annual Financial Report
For the Year Ended September 30, 2020
Table of Contents
STATISTICAL SECTION (Unaudited) (Continued)
Revenue Capacity:
Page
Principal Sales Tax Producers - Current Year and Nine Years Ago............................................................... 180
Principal Property Tax Payers - Current Year and Nine Years Ago............................................................... 181
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years ........................... 182
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years............................................................. 183
Property Tax Levies and Collections - Last Ten Fiscal Years........................................................................ 184
Debt Capacity:
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years............................................................. 185
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years.......................................................................... 186
Directand Overlapping Bonded Debt............................................................................................................. 189
Legal Debt Margin Information - Last Ten Fiscal Years................................................................................ 190
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Calendar Years................................................................. 192
Principal Employers - Current Year and Nine Years Ago.............................................................................. 193
Operating Information:
Full -Time and Part -Time City Employees by Function - Last Ten Fiscal Years ............................................ 194
Operating Indicators by Function - Last Ten Fiscal Years............................................................................. 196
Capital Asset Statistics by Function - Last Ten Fiscal Years.......................................................................... 198
Page 109 of 328
Gti� Y 0
1
March 29, 2021
Honorable Mayor, Members of the City Council, City Manager, and citizens of El Segundo:
State law requires that every general-purpose local government publish each fiscal year a
complete set of audited financial statements. This report is published to fulfill that requirement
for the fiscal year ended September 30, 2020.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive frame -work of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
CliftonLarsonAllen LLP (CLA), formerly White Nelson Diehl Evans LLP (WNDE), an
Independent CPA Firm, has issued an unmodified ("clean") opinion on the City of El Segundo's
financial statements for the year ending September 30, 2020. The independent auditor's report is
located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follow the independent auditor's
report and provides a narrative introduction, overview, and analysis of the basic financial
statements. The MD&A complements this letter of transmittal and should be read in conjunction
with it.
City of El Segundo Profile
The City of El Segundo is located 14 miles southwest of downtown Los Angeles, adjacent to the
City of Los Angeles International Airport. The City was incorporated January 18, 1917, as a
General Law city, with the Standard Oil Company of California refinery as the major industrial
taxpayer and employer. The substantial petroleum base of the local economy remains evident,
although the defense industry emerged as a major segment during World War II. Aerospace
experienced rapid growth during the early 1980's and accounted for a significant share of El
Segundo's industrial growth during those years. A downturn in the aerospace/defense industry
began in the late 1980's, and the industry's recovery took place through consolidation and
diversification into commercial endeavors. The available commercial/industrial space has been
attracting new business -to -business retail services segments, and providing opportunities to
diversify and enhance the revenue source of the City.
Page 110 of 328
The City has operated under the Council -Manager Form of Government since 1917. Policy -
making and legislative authority are vested in the City Council (governing body) consisting of
the Mayor and four Councilmembers, all elected on a non -partisan basis. The Council appoints
the government's City Manager, who serves as the organization's Chief Executive Officer
(CEO) and in turn, appoints the heads of the departments. Council members serve four-year
terms and are elected at -large. The election schedule alternates with two seats open during one
election cycle and three seats open the next election cycle. The Mayor is selected by the seated
City Council every two years.
The City provides a full range of municipal services, including police and fire protection;
highway, street and infrastructure maintenance and construction; water and wastewater
operations; library services; planning, zoning and code enforcement; recreational and cultural
activities; and general administration. This report includes all funds of the City and those
component units controlled by, and dependent on the City. Accordingly, this report incorporates
financial data for the El Segundo Senior Citizen Housing Corporation.
City Council is required to adopt a final budget by no later than the close of the previous 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).
Department Heads may transfer resources within a department. Transfers between departments,
however, must be approved by the City Manager. Any transfers between funds must be approved
by the City Council.
Local economy
El Segundo celebrated its centennial anniversary in 2017, commemorating 100 years of
innovation, leadership, and growth. In 1911, Standard Oil (Chevron) opened its second refinery
in California in what is now El Segundo. The city was incorporated 1917 with its foundation as
home to workers in the petroleum industry. Over the last 100 years, El Segundo has become a
thriving business center, home to AT&T, Los Angeles Times, Los Angeles Lakers and Los
Angeles Kings, DaVita Healthcare, and Mattel.
Los Angeles Air Force Base and the Aerospace Corporation are located in El Segundo, and the
City has a longstanding tradition of innovation in Aerospace. Boeing, Northrop Grumman,
Lockheed Martin and Raytheon, are among the many prestigious Fortune 500 companies with
facilities in El Segundo. Over half of all satellites and vehicles in space were manufactured in El
Segundo. Global Positioning Satellite Systems, Global Hawk's unmanned aerial vehicle
surveillance aircraft, and the FA-18 were also developed and conceived in El Segundo.
In addition to aerospace and petroleum, the local economy is comprised of many high -growth
industries, including: bioscience, emerging technology, creative services, sports, entertainment,
and professional services. El Segundo is also home to inventive and growing companies that
will shape our future economy, such as Kite Pharma, JustFab, Beyond Meat, Milleneum Space
Systems, and WPromote. El Segundo has been recognized as the Most Business -Friendly City in
Los Angeles County twice, and offers low tax rates, convenient access to transportation, and a
highly skilled workforce.
ii
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Long-term financial planning
The City's financial security is fundamental to the administration of City policies and practices.
City Council has always been and continues to take a conservative approach in maintaining a
strong financial position by limiting the growth of spending and acquiring additional debt. It has
established a General Fund Reserve, Economic Uncertainty Reserve Fund, and Capital
Improvement Fund to meet the needs of unforeseen circumstances that may occur in the future.
The City has traditionally implemented a strategy of adopting a Citywide Strategic Plan that is
reviewed and updated each year by the City's management and the City Council. Toward the end
of FY 2016-17, the City conducted a series of strategic planning sessions that resulted in the
City's first multi -year Strategic Plan. The current Strategic Plan is a three-year outlook covering
2020-2022. The Strategic Plan will be used as a guideline to set priorities and in development of
the budget.
The City also focuses closely on unfunded pension liabilities the City owes to the California
Public Employees' Retirement System (Ca1PERS). The City's total unfunded pension liability at
September 30, 2020 was about $153 million. These liabilities have been increasing over the past
several years due to:
• Ca1PERS Board lowering the Ca1PERS Discount Rate (Assumed Rate of Return) on
Investment Pool Assets from 7.5% to 7.0%;
• Poor CalPERS investment returns;
• Increased cash outflows in the Ca1PERS investment portfolio ($20.5 billion annually);
• Revising mortality tables and other actuarial assumptions that have negative impacts on
member agencies' rates;
• Shrinking ratio of active vs. retired employees;
• State Legislatures actions resulting in policy mandates on Ca1PERS to focus on "social
investment" practices that align with the Legislatures ideologies; resulting in divestment
from many market sectors that have performed well; and
• Ca1PERS amortization methodology on losses and assumption changes that results in
negative amortization
City Council is commended for taking a proactive approach to address the City's rising pension
costs to reduce the City's overall pension liabilities, saving millions of dollars going from City
reserves towards Ca1PERS pension costs.
Relevant financial policies
The City's general fund reserve policy in FY 2019-20 was increased from a funded level of 19%
(FY 2018-19 policy level) to 20% of the City's current general fund expenditures for its
operating reserves, as well as funding up to $2 million in a separate Economic Uncertainty
Reserve Fund. The goal is to maintain the reserve for the General Fund at 20%, as well as
maintain a reserve of $2 million in the Economic Uncertainty Fund, per current City Council
policy direction.
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The City takes a conservative approach in relation to incurring debt with a "pay-as-you-go"
approach. It is currently funding 100% of the actuarial required contribution (ARC) for its other
(than pension) post -employment benefits (OPEB).
The elected City Treasurer is charged with managing and investing cash for the City along with
support from the Investment Advisory Committee.
Major initiatives
The City currently has a Capital Infrastructure Plan (CIP) that includes the following projects:
• Annual Sidewalk, ADA ramp installation, Curb and Gutter Restoration Program
• Catch basin insert installations
• City Hall security improvements
• Gateway beautification project
• Local street rehabilitation and slurry seal
• Park Place gap closure project (design phase)
• Plunge replacement scope assessment
• Richmond field renovation
• Sewer main repairs
• Water infrastructure improvements
• Water meter conversion
• Various smaller projects that have provided enhanced benefits to the community
Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated
service of the entire staff of the Finance Department. We wish to express our appreciation to all
members of the department who assisted and contributed to the preparation of this report. Credit
also must be given to the mayor and the governing council for their unfailing support for
maintaining the highest standards of professionalism in the management of the City of El
Segundo's finances.
Respectfully submitted,
- Z L y 7X-69 E- -
Joseph Lillio
Director of Finance/Chief Financial Officer
lv
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CITY OF EL SEGUNDO
CITIZENS OF
EL SEGUNDO
CITY
TREASURER
CITY
MANAGER
INFORMATION
SYSTEMS
FINANCE
FIRE
PUBLIC
WORKS
LIBRARY
CITY
COUNCIL
CITY
ATTORNEY
HUMAN
RESOURCES
POLICE
PLANNING &
BUILDING SAFETY
RECREATION
& PARKS
CITY
CLERK
v
Page 114 of 328
Name
Drew Boyles
Chris Pimentel
Carol Pirsztuk
Lance Giroux
Scot Nicol
Scott Mitnick
Mark Hensley
Matthew Robinson
Tracy Weaver
Barbara Voss
Joseph Lillio
Rebecca Redyk
Bill Whalen
Christopher Donovan
Melissa McCollum
Sam Lee
Elias Sassoon
Charles Mallory
CITY OF EL SEGUNDO
September 30, 2020
CITY COUNCIL MEMBERS
Mayor
Mayor Pro Tern
Council Member
Council Member
Council Member
CITY OFFICIALS
CITY ADMINISTRATION
Term Expires
June 2024
June 2022
June 2024
June 2024
June 2022
City Manager
City Attorney
City Treasurer
City Clerk
Deputy City Manager
Chief Financial Officer
Director of Human Resources
Chief of Police
Fire Chief
Director of Community Services
Director of Development Services
Director of Public Works
Director of Information Systems
vi
Page 115 of 328
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of El Segundo
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
September 30, 2019
Executive Dizector"CE0
vii
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vlll
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0
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and
the Members of the City Council
of the City of El Segundo
El Segundo, California
Report on the Financial Statements
CliftonLarsonAllen LLP
CLAconnect.com
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information
of the City of El Segundo, California (the "City"), as of and for the year ended September 30, 2020, and the related
notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the
table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes 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.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of the El Segundo Senior Citizen Housing Corporation (dba Park Vista), which represents
100% of the assets, net position, and revenues of the discretely presented component unit. Those statements for
the year ended December 31, 2019 were audited by other auditors whose report has been furnished to us, and our
opinion, insofar as it relates to the amounts included for El Segundo Senior Citizen Housing Corporation, is based
solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
basic financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditors consider internal control relevant to the City's preparation and fair
presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
OA member of
Nexia
International 1
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Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the business -
type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City as of September 30, 2020, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedule, schedules of changes in net pension liabilities and related
ratios - Ca1PERS miscellaneous rate plan, Ca1PERS safety rate plan, and public agency retirement system defined
benefit plan, schedule of the City's proportionate share of the net pension liability and related ratios - Ca1PERS
safety rate plan, schedule of contributions - CaIPERS miscellaneous rate plan, CaIPERS safety rate plan, and
public agency retirement system defined benefit plan, schedule of changes in total OPEB liability and related
ratios, and schedule of contributions — OPEB, identified as Required Supplementary Information (RSI) in the
accompanying table of contents, be presented to supplement the basic financial statements. Such information,
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 RSI in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Other 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 introductory section, the combining general fund financial statements,
the combining and individual nonmajor fund financial statements and budgetary comparison schedules
(supplementary information), and the statistical section are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The supplementary information is the responsibility of management and were derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, supplementary information is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Page 119 of 328
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2021, 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 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 internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City's internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
March 29, 2021
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Management's Discussion and Analysis
As management of the City of El Segundo, California (City) we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City of El Segundo for
the fiscal year ended September 30, 2020. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal and
the City's financial statements.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $33,125,282
(total net position). The City had an unrestricted net position of ($110,553,473). This negative
unrestricted net position is the result of GASB 68 implementation in FY 2014-15 that required all
government entities to place their unfunded pension liabilities onto their agencies Statement of Net
Position.
As of the close of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $55,436,637. Of this amount, $27,457,932 (unrestricted fund balance per GASB 54)
is available for spending at the City's discretion.
At the end of the current year, unrestricted fund balance per GASB 54 for the general fund was
$23,342,874 which represents 28% of total general fund expenditures, net of transfer out, for fiscal
year 2019-20.
Overview of the Financial Statements
This annual report consists of four parts — management's discussion and analysis (MD&A - current
portion), the basic financial statements, optional combining statements for non -major governmental
funds, and required supplementary information. The MD&A discussion and analysis are intended to
serve as an introduction to the City's basic financial statements. The City's basic financial statements
are comprised of three components: 1) government -wide financial statements 2) fund financial
statements and 3) notes to the financial statements. This report also contains supplementary
information in addition to the basic financial statements.
R
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Components of the Financial Section
Management's Basic Required
Discussion Financial Supplementary
and Statements Information
Analysis
Government -wide Fund Notes
Financial Financial to the
Statements Statements Financial
Statements
Summary Detail
Government -wide Financial Statements: The government -wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private sector
business. These statements include all assets and liabilities of the City.
The statement of net position presents information on all of the City's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the City's net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only affect cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from functions that are
intended to recover some or all of their costs through user fees and charges (business -type activities).
Governmental activities: Most of the City's basic services are reported in this category, including the
general administration (city manager, city clerk, administrative services, etc.), police and fire
protection, public works and community development. Property taxes, sales tax, transient occupancy
tax, user fees, interest income, franchise fees, state and federal grants, contributions from other
agencies, and other revenues finance these activities.
Business -type activities: The City charges a fee to customers to cover all or most of the costs of
certain services it provides. The City's Water and Sewer utilities and the Solid Waste and Golf Course
operations are reported in this category.
The government -wide financial statements can be found beginning on page 20 of this report.
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Fund Financial Statements: The fund financial statements provide detailed information about the
most significant funds and other funds — not the City as a whole. Some funds are required by state law
and by bond covenants. However, management has established other funds to help it control and
manage money for particular purposes or to show that it is meeting legal responsibilities for using
certain taxes, grants, and other resources. All of the funds of the City can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds: Most of the City's basic services are reported in governmental funds, which
focus on how money flows in and out of those funds and the balances left at year-end that are available
for spending. The City's governmental funds in fiscal year 2020 are General Fund and Non -major
Governmental Funds. These funds are reported using an accounting method called modified accrual
accounting, which measures cash and all other financial assets that can readily be converted to cash.
The governmental fund statements provide a detailed short-term view of the City's general government
operations and the basic services it provides. Governmental fund information helps determine whether
there are more or fewer financial resources that can be spent in the near future to finance the City's
programs. The differences between the results in the Governmental Fund financial statements to those
in the Government -Wide financial statements are explained in a reconciliation following each
Governmental Fund financial statement.
In addition to the major funds reported separately on the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances, the City also
maintains 23 special revenue funds, one capital project fund and one debt service fund. Data from
these funds are combined into a single, aggregated presentation referred to as other governmental
funds.
Individual fund data for each of these non -major governmental funds are provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all of its governmental and proprietary funds. A
budgetary comparison statement has been provided for the general fund and major special revenue
funds to demonstrate compliance with this budget. This comparison can be found on pages 106 of this
report.
The basic governmental fund financial statements can be found on pages 28-31 of this report.
Proprietary funds: When the City charges customers for the services it provides, these services are
generally reported in proprietary funds. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The City uses enterprise funds to account for its Water, Sewer,
Solid Waste and Golf Course activities. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City's various functions. The City uses internal
service funds to account for its equipment replacement cost and general liability and workers'
compensation cost. Because these services predominantly benefit governmental rather than business -
type functions, these funds have been included within governmental activities in the government -wide
financial statements.
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Proprietary funds provide the same type of information as the government -wide financial statements
except that more detail is presented. The proprietary fund financial statements provide separate
information for the Water, Sewer and Golf Course operations, all of which are considered major funds
of the City. The Solid Waste fund is not considered a major fund of the City. The City's internal
service fund is shown separately under the heading of governmental activities.
The basic proprietary fund financial statements can be found on pages 34-43 of this report.
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial statements
because the resources of these funds are not available to support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City's fiduciary
activities are reported in a separate Statement of Fiduciary Assets and Liabilities.
The basic fiduciary fund financial statements can be found on page 46 of this report.
Notes to the financial statements: The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes
to the financial statements can be found on pages 51-102 of this report.
Other information: The combining statements referred to earlier in connection with non -major
governmental funds and internal service funds are presented immediately following the notes to the
financial statements. Combining and individual fund statements and schedules can be found on
pages 124-166 of this report.
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Government -wide Financial Analysis
As was referenced earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, total assets exceeded total liabilities by $33,125,282 at the
close of 2020 fiscal year. A summary of the government -wide statement of net position follows:
Assets:
Current and other assets
Capital assets
Deferred Outflows
of Resources
Liabilities:
Current and other liabilities
Noncurrent liabilities
Deferred Inflows of
Resources
Net assets:
Net investment in
capital assets
Restricted
Unrestricted
Governmental
Business
Total
Activities
Activities
Primary Government
2020
2019
2020
2019
2020
2019
$ 77,432,243 $
75,338,385
$ 34,533,556 $
32,193,948
$ 111,965,799
$ 107,532,333
104,449,468
105,157,440
30,667,983
31,326,736
135,117,451
136,484,176
Total assets 181,881,711
180,495,825
65,201,539
63,520,684
247,083,250
244,016,509
15,277,112
15,192,879
195,400
73,885
15,472,512
15,266,764
12,956,675
13,946,586
5,190,603
5,168,943
18,147,278
19,115,529
196,357,291
196,131,133
5,524,928
4,595,657
201,882,220
200,726,790
Total
liabilities 209,313,966
210,077,719
10,715,531
9,764,600
220,029,498
219,842,319
9,080,724
6,558,059
320,258
50,371
9,400,982
6,608,430
91,747,670 93,823,843 30,667,983 31,244,813 122,415,653 125,068,656
21,263,102 11,082,956 - - 21,263,102 11,082,956
(134,246,639) (125,853,873) 23,693,167 22,534,785 (110,553,473) (103,319,088)
Total net
position $(21.235.8671 (20.947.0741 $54,361, 550 $ 53,779,598 $ 33,125, 882 $ 32,832, 224
It should be kept in mind while reviewing these schedules that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities. These assets are used to provide services to its citizens and are not available for future
spending.
C
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A summary of the government -wide statement of activities follows:
Governmental
Business
Total
Activities
Activities
Primary Government
2020
2019
2020
2019
2020
2019
Revenues
Program revenues:
Charges for services
$7,221,812
$9,462,300
$32,084,264
$39,943,697
$39,306,076
$49,405,997
Operating grants and contributions
2,932,318
4,148,187
2,932,318
4,148,187
Capital grants and contributions
7,691,323
2,580,996
375,000
7,691,323
2,955,996
General revenues:
Property taxes
11,816,366
11,138,625
11,816,366
11,138,625
Transient Occupancy taxes
8,760,763
14,598,200
8,760,763
14,598,200
Sales taxes
12,006,731
13,023,091
12,006,731
13,023,091
Utility user taxes
5,458,167
5,967,863
5,458,167
5,967,863
Franchise taxes
3,350,323
2,709,760
3,350,323
2,709,760
Business license taxes
12,313,710
12,082,451
12,313,710
12,082,451
Other taxes
6,937,601
7,631,885
6,937,601
7,631,885
Motor vehicles in lieu
-
-
-
-
Use of money and property,
unrestricted
3,420,790
2,440,102
291,780
1,139,315
3,712,570
3,579,417
Other
1,926,516
1,682,211
23,926
1,926,516
1,706,137
Total revenues
83,836,420
87,465,671
32,376,044
41,481,938
116,212,464
128,947,609
Expenses
General government
18,698,011
17,788,600
-
-
18,698,011
17,788,600
Public safety
43,330,009
40,878,258
43,330,009
40,878,258
Public works
11,713,451
9,534,893
11,713,451
9,534,893
Community & cultural
10,058,912
11,321,339
10,058,912
11,321,339
Interest on long-term debt
324,830
337,350
324,830
337,350
Water
-
-
25,014,971
26,525,468
25,014,972
26,525,468
Sewer
4,978,350
3,336,645
4,978,350
3,336,645
Golf Course
1,553,159
1,674,851
1,553,159
1,674,851
Solid Waste
248,012
248,012
Total expenses
84,125,213
79,860,440
31,794,492
31,536,964
115,919,706
111,397,404
Excess (deficiency) before transfers
28( 8,793)
7,605,231
581,552
9,944,974
292,758
17,550,205
Transfers
Increase (decrease) in net position
(288,793)
7,605,231
581,551
9,944,974
292,758
17,550,205
Net position at beginning of year (as
restated)
(20,947,074)
(28,552,305)
53,779,598
43,834,624
32,832,524
15,282,319
Net position at end of year
$(21.235.867)
$(20.947.074)
$54,361, 550
$53,779,598
$33,125, 882
$32,832, 224
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Governmental Activities
The City's net position from governmental activities decreased $288,793. The decrease in net position
is attributed to a decrease in revenues and an increase in expenses in governmental funds due to the
Covid pandemic.
• In summary:
o Grants and contributions decreased $1.2 million;
o Sales taxes decreased $1.0 million due to a decrease in volume;
o Interest and rentals increased $981 thousand due to higher cash balances and investment
returns;
o Transient Occupancy taxes decreased $5.8 million due to the Covid pandemic;
o Property taxes increased $677 thousand due to increased property values;
o Charges for services decreased $2.2 million due to the Covid pandemic;
o Business license taxes increased by $231 thousand primarily due to a CPI rate increase;
o Franchise taxes increased $641 thousand;
o Public safety expenses increased by $2.5 million primarily due to the Covid pandemic;
o General government expenses increased by $909 thousand due to the addition of new
positions;
o Community & cultural expenses decreased by $1.3 million due to the Covid pandemic;
o Public works expenses increased by $2.2 million due to the Covid pandemic;
The cost of all governmental activities for the year was $84.1 million. The taxes that ultimately
financed these activities were only $60.6 million and a portion of the costs were paid by those who
directly benefited from the programs ($7.2 million) or by other governments and organizations that
subsidized certain programs with grants and contributions ($10.6 million).
Overall, the City's governmental program revenues were $17.8 million; of the remaining "public
benefit" governmental activities, $12.3 million were paid with business license taxes, utility user taxes
of $5.5 million, sales and use taxes of $12.0 million, property taxes of $11.8 million, franchise taxes of
$3.4 million, transient occupancy tax of $8.8 million and other revenues and taxes of $12.3 million.
11
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GOVERNMENT ACTIVITIES
SOURCES OF REVENUE
FISCAL YEAR 2019-2020
Use of money and
property, 4%
Other taxes, 8%
Business license
taxes, 15%,41111
Franchise taxes,
4%
Utility user tax,
7%
Other, 2% Charges for
I IServices, 9%
Operating grants
and contributions,
3%
Capital grants and
contributions, 9%
Sales taxes, 14%
Transient
occupancy taxes,
10%
Property
-Taxes,
14%
GOVERNMENT ACTIVITIES EXPENDITURES
FISCAL YEAR 2019-2020
Community .x
PL
Interest on
Lone -term Debt
Public Safety
52%
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Business -Type Activities
The programs for the business -type activities include the water, sewer, solid waste and the golf course
operations.
The City's net position from business -type activities increased by $581,551. The cost of all Proprietary
(Business Type) activities this year was $31,794,493.
Charges for services are the major revenue source for the City's business -type activities, accounting
for $32,084,264 of total business -type activity revenue.
The Water Utility net cost of service of $1,389,816 is attributable to a decrease in expenses due to less
potable water purchased during year.
The Sewer Utility net cost of service of ($783,720) is attributable to an increase in expenses due to
an increase in personnel costs during the year.
The Solid Waste fund net cost of service of ($248,012) is new fund and the decrease is no revenue for
the current year and an increase in contractual expenses.
The Golf Course net cost of service of ($68,313) is attributable to a decrease in revenues due to the
closure of some operations due to the Covid pandemic.
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental Funds: The focus of the City's governmental funds is to provide information on near -
term inflows, outflows and balances of spendable resources. Such information is useful in assessing
the City's financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $55,436,637, an increase of $2.9 million or 5% from the previous year. The increase is
primarily due to an increase in revenue from developer fees. The City's General Fund decreased $3.2
million due to a decrease in revenues and higher expenditures due to the Covid pandemic. The
remaining amount is an increase in the non -major Governmental funds of $6.0 million which is largely
due to unspent funds in the Capital Improvement fund and various grant funds. The portion of fund
balance that is unreserved, undesignated for all governmental funds is $20.8 million which represents
amounts available for spending at the government's discretion.
Additionally, there are portions of the identified combined ending fund balance that are classified to
indicate (1) it has been assigned to liquidate contracts and purchase orders of the prior period $560,379
(2) it represents nonspendable amounts for inventory, receivables and prepaid costs $8,022,692, (3) for
a variety of other restricted and assigned purposes $26,091,700. More details can be found in Note 13.
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GOVERNMENTAL FUND BALANCE
FISCAL YEAR 2019-2020
Othei
Governmi
Fund!
35%
Fund
V0
Major Funds: There is one major fund on the balance sheet for governmental funds. This is the
general fund, the chief operating fund of the City. At the end of the current fiscal year, the available
fund balance (assigned and unassigned) was $23,342,874 which represents 65% of total fund balance
of $35,762,880. As a measure of the general fund's available resources, it may be useful to compare
restricted and total fund balance to total fund expenditures. The available fund balance represents 28%
of total general fund expenditures, net of transfer out, while total general fund balance represents 43%
of that same amount.
Proprietary Funds: The City's proprietary funds provide the same type of information found in the
government -wide financial statements but in greater detail.
Ending unrestricted net position for the proprietary funds is $25,469,246 for the Water Utility Fund,
$4,168,090 for the Sewer Utility Fund, a negative $248,012for the Solid Waste Fund and a negative
$5,696,167 for the Golf Course Fund. The total change in net position for the City's four proprietary
funds is as follows:
• The Water Utility's net position increased by $1,632,908 or an increase of 5% over net
position of the prior year due to lower expenses;
• The Sewer Utility's net position decreased $735,032 or a decrease of 5% over net
position of the prior year due to a decrease in revenues and an increase in expenses;
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The Solid Waste's net position decreased $248,012 due to contractual expenses; and
• The Golf Course net position decreased $68,313 or a net decrease of 2% over the prior
year due to lower revenues.
Other factors concerning the finances of these three funds have already been addressed in the
discussion of the City's business -type activities.
General Fund Budgetary Highlights
During the year, with the recommendation from the City's staff, the City Council revised the
expenditure City budget several times. Adjustments were made as the City's staff requested additional
appropriations to cover the cost of projects that either had change orders for additional work, or the
estimated cost at the beginning of the project was underestimated. All amendments that resulted in a
net increase in appropriations are approved by the City Council.
Appropriations
Differences between the original budget and the final amended budget of the General Fund resulted in
a decrease in appropriations of $4,130,651, or a net decrease in budgetary fund balance of $4,130,651.
• General Government encumbrances decreased $1,381,209.
• Public Safety encumbrances decreased $1,652,790.
• Public Works encumbrances decreased $219,982.
• Community & Cultural encumbrances decreased $887,221.
Over-all, the general fund was over budget when comparing budget to actual. This was due to
additional expenditures due to the Covid pandemic. The most significant savings were in General
Government. The reasons for these savings are as follows:
• The General Government Departments came in $536,119 over budget, primarily in salaries and
benefits and operation and maintenance expenditures.
• The Public Safety Departments came in $1,857,760 over budget primarily in salaries and
benefits.
• The Public Works Departments came in $653,392 under budget primarily in contractual
services and operations and maintenance expenditures.
• The Community and Cultural Departments came in $1,176,741 under budget salaries and
benefits due to unfilled vacancies and lower operations and maintenance expenditures due to
the Covid pandemic.
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Revenue
Differences between the final budget and the actual revenues resulted in an increase of $5,629,882, or
an 8.4% increase in budgeted revenues.
Some significant variances between the final budget and actual revenues are as follows:
• Interest and Rentals increased $2,588,000 due to an increase in portfolio returns.
• Sales and Use Taxes increased $1,331,000 above the final budget is mainly attributable to
increased online sales volumes.
• Utility Users Taxes increased $497,000 above the final budget is mainly attributable to an
increase in electric utility taxes.
• Property Taxes increased $585,000 above the final budget is attributable to an increase in
property values.
• Transient Occupancy Tax decreased $776,000 due to lower hotel occupancy.
For the City's general fund, amounts available for appropriation of $66,967,992 was $5,629,882 lower
than actual revenues of $72,597,874. Actual ending expenditures not including transfers out were
$74,662,548 which was $751,409 more than the final budget of $73,911,139, not including transfer
out. The net effect of these variances between actual and budgeted was an increase in budgetary fund
balance of $4,878,473. Therefore, there was an increase in ending fund balance.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets: The City's investment in capital assets for its governmental and business -type
activities as of September 30, 2019 amounts to $130,635,088 (net of accumulated depreciation). This
investment in capital assets includes land, buildings and improvements, vehicles and equipment, park
facilities, roads, highways, streets and bridges.
Capital assets not being depreciated
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated, net
Buildings and improvements
Vehicles and equipment
Infrastructure
Total capital assets being depreciated, net
Total capital assets, net
Governmental
Business -Type
Total
Activities
Activities
Primary Government
2020
2019
2020
2019
2020
2019
$ 29,522,040
$29,522,040
$ 5,999,980
$ 5,999,980
$ 35,522,020 $
35,522,020
163,898
227,326
296,936
610,038
460,834
837,364
29,685,938
29,749,366
6,610,018
6,610,018
35,982,854
36,359,384
18,053,074
18,850,081
2,565,624
2,720,251
20,618,698
21,570,332
7,128,070
7,481,667
15,498
67,824
7,143,568
7,549,491
45,100,023
46,432,946
21,789,945
21,928,643
66,889,968
68,361,589
99,967,105
72,764,694
24,371,067
24,716,718
94,652,234
97,481,412
99.967.105 102.514.060 30.667.983 31.326.736 130.635.088 133.840.796
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Additional information on the City's capital assets can be found in Note 6 of the Notes to Financial
Statements in this report.
Long-term debt: The City's governmental activities total debt increased by $1,578,952. The City's
business -type activities total debt increased by $11,740, which is attributable to an increase in
compensated absences in the Water and Sewer Fund. City-wide, compensated absences increased by
$344,973 and Claims and Judgments increased by $1,626,000. Capital parking structure lease
decreased by $54,286 and facility lease decreased by $325,996.
Governmental
Business -Type Total
Activities
Activities Primary Government
2020
2019
2020 2019 2020
2019
Compensated absences
$5,104,911
$4,771,678
$216,706 $204,966 $5,321,617
$4,976,644
Claims and judgments
12,926,000
11,300,000
- - 12,926,000
11,300,000
Capital lease parking structure
2,024,903
2,079,189
2,024,903
2,079,189
Facility lease
6,178,064
6,504,059
- 6,178,064
6,504,059
Total long-term debt 426,233,878 24.654.926 $ 216,706 $ 204,966 26.450.584 $ 24,859,892
Additional information on the City's long-term debt can be found in Note 7 of the Notes to Financial
Statements in this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
In preparing the budget for 2019-2020 the following economic factors significantly impacted the
budget process:
• Increase cost in Ca1PERS retirement benefits for employees and funding of GASB 68 liability.
• Performance of national, state and primarily local economy and its impact on El Segundo's
major revenue sources.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the City of El Segundo's finances and to show the City's accountability for
the money it receives. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to the City's Finance Department at the City
of El Segundo, 350 Main Street, El Segundo, CA 90245.
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FINANCIAL STATEMENTS
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City of El Segundo
Statement of Net Position
September 30, 2020
Primary Government
Component Unit
Park Vista
Governmental
Business -type
Senior Housing
Activities
Activities
Total
December 31, 2019
ASSETS
Current assets:
Cash and investments
$ 55,207,959
$ 36,711,853 $
91,919,812
$ 427,887
Receivables:
Taxes
4,566,739
-
4,566,739
-
Accounts
663,176
3,493,548
4,156,724
-
Interest
290,621
-
290,621
-
Notes and loans
66,905
-
66,905
-
Internal balances
5,923,302
(5,923,302)
-
-
Due from other governments
970,482
-
970,482
-
Inventories
100,264
54,225
154,489
-
Prepaids and other assets
9,642,795
197,232
9,840,027
4,836
Total current assets
77,432,243
34,533,556
111,965,799
432,723
Noncurrent assets:
Restricted cash
4,482,363
-
4,482,363
836,834
Capital assets, not being depreciated
29,685,938
6,296,916
35,982,854
-
Capital assets, net of depreciation
70,281,167
24,371,067
94,652,234
451,014
Total noncurrent assets
104,449,468
30,667,983
135,117,451
1,287,848
Total assets
181,881,711
65,201,539
247,083,250
1,720,571
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 13,754,837 116,615 13,871,452 -
Deferred outflows of resources related to OPEB 1,522,275 78,785 1,601,060 -
Total deferred outflows of resources 15,277,112 195,400 15,472,512 -
See accompanying Notes to the Financial Statements.
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City of El Segundo
Statement of Net Position (Continued)
September 30, 2020
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Retention payable
Accrued interest
Unearned revenue
Deposits payable
Long-term liabilities - due within one year
Total current liabilities
Noncurrent liabilities:
Long-term liabilities - due in more than one year
Aggregate net pension liability
Net other postemployment benefit liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total Deferred Outflows of Resources
NET POSITION
Net investment in capital assets
Restricted for:
Public safety
Public works
Community and cultural
Debt services
Pension
Total restricted
Unrestricted (deficit)
Total net position
Primary Government
Component Unit
Park Vista
Governmental
Business -type
Senior Housing
Activities
Activities
Total
December 31, 2019
1,830,343
4,749,904
6,580,247
12,441
2,338,129
116,228
2,454,357
-
16,469
-
16,469
-
29,391
-
29,391
-
325,086
24,908
349,994
3,317
1,494,219
96,730
1,590,949
55,892
6,923,038
202,833
7,125,871
-
12,956,675
5,190,603
18,147,278
71,650
19,310,840
13,873
19,324,713
-
149,353,661
4,077,830
153,431,491
-
27,692,790
1,433,225
29,126,015
-
196,357,291
5,524,928
201,882,219
-
209,313,966
10,715,531
220,029,497
71,650
3,191,909
15,485
3,207,394
-
5,888,815
304,773
6,193,588
-
9,080,724
320,258
9,400,982
-
91,747,670
30,667,983
122,415,653
451,014
1,627,378
-
1,627,378
-
2,493,591
-
2,493,591
-
11,629,479
-
11,629,479
-
1,030,291
-
1,030,291
-
4,482,363
4,482,363
-
21,263,102
-
21,263,102
-
(134,246,639)
23,693,167
(110,553,472)
1,197,907
$ (21,235,867)
$ 54,361,150
$ 33,125,283
$ 1,648,921
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City of El Segundo
Statement of Activities
Year Ended September 30, 2020
Program Revenues
Operating
Capital
Total
Charges for
Contributions
Contributions
Program
Functions/Programs
Expenses
Services
and Grants
and Grants
Revenues
Governmental activities:
General government
$ 18,698,011
$ 258,538
$ - $
-
$ 258,538
Public safety
43,330,009
1,545,947
114,867
413,768
2,074,582
Public works
11,713,451
26,524
1,427,854
1,314,068
2,768,446
Community and cultural
10,058,912
5,390,803
1,389,597
5,963,487
12,743,887
Interest on long-term debt
324,830
-
-
-
-
Total governmental activities
84,125,213
7,221,812
2,932,318
7,691,323
17,845,453
Business -type activities:
Water
25,014,971
26,404,788
-
-
26,404,788
Sewer
4,978,350
4,194,630
-
-
4,194,630
Golf Course
1,553,159
1,484,846
-
-
1,484,846
Solid waste
248,012
-
-
-
-
Total business -type activities
31,794,492
32,084,264
-
-
32,084,264
Total primary government
115,919,705
39,306,076
2,932,318
7,691,323
49,929,717
Component unit:
Park Vista Senior Housing
$ 576,442
$ 762,092
$ - $
-
$ 762,092
See accompanying Notes to the Financial Statements.
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City of El Segundo
Statement of Activities (Continued)
Year Ended September 30, 2020
Net (Expense) Revenue and Changes in Net Position
Primary Government
Component Unit
Park Vista
Governmental
Business -Type
Senior Housing
Functions/Programs
Activities
Activities
Total
December 31, 2019
Governmental activities:
General government
$ (18,439,473)
$ - $
(18,439,473)
$ -
Public safety
(41,255,427)
-
(41,255,427)
-
Public works
(8,945,005)
-
(8,945,005)
-
Community and cultural
2,684,975
-
2,684,975
-
Interest on long-term debt
(324,830)
-
(324,830)
-
Total governmental activities
(66,279,760)
-
(66,279,760)
-
Business -type activities:
Water
-
1,389,817
1,389,817
-
Sewer
-
(783,720)
(783,720)
-
Golf course
-
(68,313)
(68,313)
-
Solid waste
-
(248,012)
(248,012)
-
Total business -type activities
-
289,772
289,772
-
Total primary government
(66,279,760)
289,772
(65,989,988)
-
Component unit:
Park Vista Senior Housing
-
-
-
185,650
General revenues:
Taxes:
Property taxes, levied for general purpose
11,816,366
-
11,816,366
-
Transient occupancy taxes
8,760,763
-
8,760,763
-
Sales taxes
12,006,731
-
12,006,731
-
Utility user taxes
5,458,167
-
5,458,167
-
Franchise taxes
3,350,323
-
3,350,323
-
Business licenses taxes
12,313,710
-
12,313,710
-
Othertaxes
6,937,601
-
6,937,601
-
Total taxes
60,643,661
-
60,643,661
-
Use of money and property, unrestricted
3,420,790
291,780
3,712,570
8,268
Other
1,926,516
-
1,926,516
-
Total general revenues
65,990,967
291,780
66,282,747
8,268
Changes in net position
(288,793)
581,552
292,759
193,918
Net position at beginning of year
(20,947,074)
53,779,598
32,832,524
1,455,003
Net position at end of year
$ (21,235,867)
$ 54,361,150 $
33,125,283
$ 1,648,921
See accompanying Notes to the Financial Statements.
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FUND FINANCIAL STATEMENTS
25
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GOVERNMENTAL FUNDS
FINANCIAL STATEMENTS
General Fund - To account for and report all financial resources not accounted for and reported in another fund.
Nonmajor Governmental Funds - To account for the aggregate of all the nonmajor governmental funds.
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ASSETS
Cash and investments
Restricted cash
Receivables:
Taxes
Accounts
Interest
Notes and loans
Due from other funds
Due from other governments
Inventories
Prepaids
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Due to other funds
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources
Unavailable revenues
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
City of El Segundo
Balance Sheet
Governmental Funds
September 30, 2020
Nonmajor
Governmental
P-A. T-F,1
$ 22,110,069 $ 21,052,956 $ 43,163,025
4,482,363 - 4,482,363
4,566,739
-
4,566,739
552,739
70,437
623,176
290,487
134
290,621
17,500
49,405
66,905
409,361
-
409,361
646,269
324,213
970,482
100,264
-
100,264
7,819,879
85,049
7,904,928
$ 40,995,670 $ 21,582,194 $ 62,577,864
$ 1,266,119 $ 451,366 $ 1,717,485
2,265,341
36,618
2,301,959
2,336
14,133
16,469
-
63,969
63,969
30,868
294,218
325,086
648,796
845,423
1,494,219
4,213,460
1,705,727
5,919,187
1,019,330
202,710
1,222,040
1,019,330
202,710
1,222,040
7,937,643
85,049
8,022,692
4,482,363
15,473,650
19,956,013
2,534,891
4,161,175
6,696,066
20,807,983
(46,117)
20,761,866
15.762_990
19.673.757
55.416.617
$ 40,995,670 $ 21,582,194 $ 62,577,864
See accompanying Notes to the Financial Statements.
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City of El Segundo
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Position
September 30, 2020
Total Fund Balances -Total Governmental Funds $ 55,436,637
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and are not reported in the
fimds:
Amount reported in government -wide statement of position:
Capital assets, nondepreciable $ 29,685,938
Capital assets, depreciable, net (net of $4,476,493 reported in ISF) 65,804,674 95,490,612
Interest is recognized when due, and therefore, interest payable is not reported in the governmental
funds. (29,391)
Long-term liabilities were not due and payable in the current period. Therefore, they were not
reported in the Governmental Funds' Balance Sheet.
Capital lease and facility lease (8,202,966)
Compensated absences (5,104,912)
Net OPEB liability is not due and payable in the current period and therefore is not reported in the
governmental funds. (net of $135,233 reported in ISF)
(27,557,557)
OPEB related deferred outflows of resources are not reported in the governmental funds but are
reported in the government -wide financial statements. (net of $7,434 reported in ISF)
1,514,841
OPEB related deferred inflows of resources are not reported in the governmental funds but are
reported in government- wide financial statements. (net of $28,757 reported in ISF)
(5,860,058)
Aggregate net pension liability is not due and payable in the current period and therefore is not
reported in the governmental funds. (net of $494,468 reported in ISF)
(148,859,193)
Pensions related deferred outflows of resources are not reported in the governmental funds but are
reported in the government -wide financial statements. (net of $14,140 reported in ISF)
13,740,697
Pensions related deferred inflows of resources are not reported in the governmental funds but are
reported in government- wide financial statements. (net of $1,878 reported in ISF)
(3,190,031)
Certain revenues in the governmental funds are unavailable because they are not collected
within the prescribed time period after year-end. Those revenues are recognized on the
accrual basis in the government -wide statements.
1,222,040
Internal service funds are used by management to charge the costs of general liability, workers'
compensation and health benefit claims to individual funds. The assets and liabilities of the internal
service funds are included in the governmental activities in the Government -Wide Statement of Net
Position.
10,163,414
Net position of governmental activities
$ (21,235,867)
See accompanying Notes to the Financial Statements.
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City of El Segundo
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer Fees
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt Service:
Principal retirement
Interest
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
Nonmajor
Governmental
General Funds Total
$ 47,730,728 $ 37,055 $ 47,767,783
14,234,600
3,123
14,237,723
-
2,391,795
2,391,795
4,307,599
509,952
4,817,551
3,392,762
79,494
3,472,256
273,083
93,962
367,045
110,876
6,183,080
6,293,956
2,548,226
811,325
3,359,551
72,597,874
10,109,786
82,707,660
18,945,367
19,513
18,964,880
39,958,597
166,081
40,124,678
7,233,202
149,289
7,382,491
8,315,678
1,183,557
9,499,235
15,704
3,146,559
3,162,263
54,286
325,995
380,281
139,714
186,666
326,380
74,662,548
5,177,660
79,840,208
(2,064,674) 4,932,126 2,867,452
140,000 1,249,000 1,3 89,000
(1,249,000) (140,000) (1,389,000)
(1,109,000) 1,109,000 -
(3,173,674) 6,041,126 2,867,452
38,936,554 13,632,631 52,569,185
$ 35,762,880 $ 19,673,757 $ 55,436,637
See accompanying Notes to the Financial Statements.
30
Page 147 of 328
City of El Segundo
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Position
For the Year Ended September 30, 2020
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
Acquisition of capital assets was reported as expenditures in the governmental funds. However,
in the Government -Wide Statement of Activities, the cost of those assets was allocated over the
estimated useful lives as depreciation expense. The following was the amount of capital assets
recorded in the current period:
Capital outlay (net of $530,736 reported in Internal Service Funds)
Depreciation expense on capital assets was reported in the Government -Wide Statement of
Activities, but they did not require the use of current financial resources. Therefore, depreciation
expense was not reported as an expenditure in the governmental funds. (net of $873,996 reported
in Internal Service Funds)
Long-term compensated absences expense was reported in the Government -Wide Statement of
Activities, but it did not require the use of current financial resources. Therefore, the change in
long-term compensated absences was not reported in the governmental funds.
Other postemployment benefits and pension expenses were reported in the Government -Wide
Statement of Activities, but it did not require the use of current financial resources. Therefore,
the increase in other postemployment benefits liability and net pension liabilities were not
reported as an expenditure in the governmental funds.
OPEB credit (expense) net of reporting contribution made after measurement date reported in
deferred outflows of resources in the Government -Wide Statement of Net Position but
reported as OPEB expense in the governmental fund.
Pension credit (expense) net of reporting contribution made after measurement date reported
in deferred outflows of resources in the Government -Wide Statement of Net Position but
reported as pension expense in the governmental fund.
1,986,415
(3,848,003)
2,867,452
1,311,989
(3,781,273)
(333,232)
(1,861,588)
Proceeds from long-term debt provided current financial resources to governmental funds, but
issuing debt increased long-term liabilities in the Government -Wide Statement of Net Position.
Principal repayment of leases was an expenditure in the governmental funds, but the repayment
reduced long-term liabilities in the Government -Wide Statement of Net Position.
Principal repayments of long-term debt 380,281
Interest accrual on capital lease and facility lease 1,550 381,831
Certain revenues in the governmental funds are unavailable if they are not collected within
the prescribed time period after year-end. Those revenues are recognized on the accrual
basis in the government -wide statements.
Internal service funds were used by management to charge the costs of certain activities, such as
insurance, to individual funds. The net revenue of the internal service funds was reported with
governmental activities.
Change in net position of governmental activities
1,128,760
(2,732)
$ (288,793)
See accompanying Notes to the Financial Statements.
31
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32
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PROPRIETARY FUNDS
FINANCIAL STATEMENTS
Water Fund - To account for water utility revenues, including service fees and installation charges, and all
expenses related to the construction and maintenance of the City's water distribution system.
Sewer Fund - To account for user charges, fees and all operating costs associated with the operation, maintenance,
upgrade and periodic reconstructions of the City's wastewater collection system.
Golf Course Fund - To account for revenues from user fees and expenses incurred for the operation and
maintenance of "The Lakes at El Segundo" golf facility.
Internal Service Funds - To account for financing of goods and services provided by one department to other
departments of the City on a cost -reimbursement basis.
33
Page 150 of 328
City of El Segundo
Statement of Net Position
Proprietary Funds
September 30, 2020
ASSETS
Current assets:
Cash and investments
Accounts Receivable
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Advances to other funds
Capital assets, not being depreciated
Capital assets, being depreciated
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pension
Deferred outflows of resources related to OPEB
Total deferred outflows of resources
Business -Type Activities - Enterprise Funds
Nonmajor
Enterprise
C.nlf Fnnd
$ 30,318,947 $ 6,384,899 $ 8,007 $ -
2,994,618 447,650 51,280 -
28,803 - 25,422 -
33,464,265
6,907,884
84,709 -
148,468
148,468
5,999,980 -
10,000,447
10,245,113
4,125,507 -
10,148,915
10,393,581
10,125,487 -
43,613,180
17,301,465
10,210,196 -
79,449
37,166
- -
44,366
34,419
- -
123,815
71,585
- -
See accompanying Notes to the Financial Statements.
34
Page 151 of 328
City of El Segundo
Statement of Net Position (Continued)
Proprietary Funds
September 30, 2020
Business -Type
Activities -
Governmental
Enterprise
Activities -
Funds
Internal
Total
Service Funds
ASSETS
Current assets:
Cash and investments
$ 36,711,853
$ 12,044,934
Accounts Receivable
3,493,548
40,000
Inventories
54,225
-
Prepaid items
197,232
1,737,867
Total current assets
40,456,858
13,822,801
Noncurrent assets:
Advances to other funds
-
5,577,910
Capital assets, not being depreciated
6,296,916
-
Capital assets, being depreciated
24,371,067
4,476,493
Total noncurrent assets
30,667,983
10,054,403
Total assets
71,124,841
23,877,204
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pension
116,615
14,140
Deferred outflows of resources related to OPEB
78,785
7,434
Total deferred outflows of resources
195,400
21,574
(Continued)
35
Page 152 of 328
City of El Segundo
Statement of Net Position (Continued)
Proprietary Funds
September 30, 2020
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Unearned revenue
Deposits payable
Due to other funds
Claims and judgments, current portion
Compensated absences, current portion
Total current liabilities
Noncurrent liabilities:
Advances from other funds
Claims and judgments, net of current
Compensated absences, net of current
Aggregate net pension liability
Total other postemployment benefit liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF REOSURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Business -Type Activities - Enterprise Funds
Nonmajor
Enterprise
Golf Fund
$ 4,077,104 $ 609,748 $ - $ 63,052
61,443 37,159 17,626 -
- - 24,908 -
96,730 - - -
- - 160,432 184,960
4,338,246 746,771 202,966 248,012
5,577,910 -
13,127 746 -
2,778,195 1,299,635 -
7,936,657 2,673,288 5,780,876 248,012
10,550 4,935 - -
10,148,915 10,393,581 10,125,487 -
$ 35,618,162 $ 14,561,680 $ 4,429,320 $ (248,012)
See accompanying Notes to the Financial Statements.
36
Page 153 of 328
City of El Segundo
Statement of Net Position (Continued)
Proprietary Funds
September 30, 2020
LIABILITIES
Current liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Unearned revenue
Deposits payable
Due to other funds
Claims and judgments, current portion
Compensated absences, current portion
Total current liabilities
Noncurrent liabilities:
Advances from other funds
Claims and judgments, net of current
Compensated absences, net of current
Aggregate net pension liability
Total other postemployment benefit liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF REOSURCES
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Unrestricted (deficit)
Total net position
Business -Type
Activities -
Enterprise
Funds
Governmental
Activities -
Internal
$ 4,749,904 $
112,858
116,228
36,170
24,908
-
96,730
-
345,392
-
-
2,502,181
202,833
-
5,535,995
2,651,209
5,577,910 -
- 10,423,819
13,873 -
4,077,830 494,468
15,485 1,878
30,667,983 4,476,493
W W
(Concluded)
37
Page 154 of 328
City of El Segundo
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2020
OPERATING REVENUES:
Sales and service charges
Interdepartmental charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personnel services
Materials and supplies
Purchased water/utilities
Insurance and claims
Contractual services
Repairs and maintenance
Administrative cost
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Interest revenue
Loss on disposal of capital assets
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS
CAPITAL CONTRIBUTIONS
CHANGES IN NET POSITION
NET POSITION:
Beginning of the year
End of year
Business -Type Activities - Enterprise Funds
Nonmaj or
Enterprise
Golf Fund
$ 26,308,717 $ 4,194,630 $ 1,479,846 $ -
96,071 - 5,000 -
26,404,788 4,194,630 1,484,846 -
2,298,047
1,425,382
624,198
-
128,834
98,888
111,694
-
20,326,510
-
156,949
-
996,300
308,100
53,220
-
113,560
1,884,461
9,700
248,012
249,658
219,001
160,210
-
714,085
397,875
232,296
-
187,977
644,643
204,892
-
25,014,971
4,978,350
1,553,159
248,012
1,389,817
(783,720)
(68,313)
(248,012)
243,092
48,688
-
-
243,092
48,688
-
1,632,909
(735,032)
(68,313)
(248,012)
1,632,909
(735,032)
(68,313)
(248,012)
33,985,253 15,296,712 4,497,633 -
$ 35,618,162 $ 14,561,680 $ 4,429,320 $ (248,012)
See accompanying Notes to the Financial Statements.
38
Page 155 of 328
City of El Segundo
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2020
OPERATING REVENUES:
Sales and service charges
Interdepartmental charges
Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Personnel services
Materials and supplies
Purchased water/utilities
Insurance and claims
Contractual services
Repairs and maintenance
Administrative cost
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Interest revenue
Loss on disposal of capital assets
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS
CAPITAL CONTRIBUTIONS
CHANGES IN NET POSITION
NET POSITION:
Beginning of the year
End of year
Business -Type
Activities
Governmental
Enterprise
Activities -
Funds
Internal
'P_+�l
Co.- 4-- 17, -A,
$ 31,983,193 $ -
- 7,417,158
1 M n'71 Adz 1;10
17 (WA ')AA Q n[O A07
4,347,627
517,101
339,416
132,101
20,483,459
-
1,357,620
6,804,820
2,255,733
-
628,869
-
1,344,256
-
1,037,512
873,996
11 70a A0 1
R 1IR nl R
289,772 (268,321)
291,780 -
291,780 -
581,552 (268,321)
IFS SRQ
581,552 (2,732)
53,779,598 10,166,146
$ 54,361,150 $ 10,163,414
39
Page 156 of 328
City of El Segundo
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
Business -Type Activities - Enterprise Funds
Nonmajor
Enterprise
Golf
Fund
Water
Sewer
Course
Solid Waste
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users
$ 26,664,925
$ 4,149,436
$ 1,428,165
$ -
Payments for insurance claims
-
-
-
-
Payments to suppliers
(22,854,350)
(2,589,769)
(753,986)
(248,012)
Payments to employees
(1,585,877)
(1,026,279)
(624,198)
Net cash provided by operating activities
2,224,698
533,388
49,981
(248,012)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash receipts (payments) from (to) other funds - - - 248,012
Advance from other funds - - 43,568 -
Due to other funds - - (99,913) -
Net cash provided (used) by noncapital
financing activities - - (56,345) 248,012
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets (230,291) (148,468) - -
Proceeds from sale of assets - Net cash used by capital and
related financing activities (230,291) (148,468) - -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 243,092 48,688 - Net cash provided by investing activities 243,092 48,688 - -
Net change in cash and cash equivalents 2,237,499 433,608 (6,364) -
CASH AND CASH EQUIVALENTS
Beginning of year 28,081,448 5,951,291 14,371 -
End ofyear $ 30,318,947 $ 6,384,899 $ 8,007 $ -
See accompanying Notes to the Financial Statements.
40
Page 157 of 328
City of El Segundo
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users
Payments for insurance claims
Payments to suppliers
Payments to employees
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash receipts (payments) from (to) other funds
Advance from other funds
Due to other funds
Net cash provided (used) by noncapital
financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Proceeds from sale of assets
Net cash used by capital and
related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
Net cash provided by investing activities
Net change in cash and cash equivalents
CASH AND CASH EQUIVALENTS
Beginning of year
End of year
Business -Type
Activities -
Enterprise
Funds
Total
Governmental
Activities
Internal
Service Funds
$ 32,242,526 $
8,020,266
-
(5,117,591)
(26,446,117)
(1,427,132)
(3,236,354)
(260,249)
2,560,055
1,215,294
248,012 (43,568)
43,568 -
(99,913) -
191,667 (43,568)
(378,759) (530,736)
(378,759) (530,736)
291,780 -
291,780 -
2,664,743 640,990
34,047,110 11,403,944
$ 36,711,853 $ 12,044,934
(Continued)
41
Page 158 of 328
City of El Segundo
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended September 30, 2020
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
(Increase) decrease in:
Accounts receivable
Inventory
Prepaid items
Deferred outflows of resources - pension
Deferred outflows of resources - OPEB
Increase (decrease)in:
Accounts payable
Accrued liabilities
Retentions payable
Unearned revenue
Deposits payable
Claims and judgements
Compensated absences payable
Net pension liability
Net other postemployment liability
Deferred inflows of resources - pension
Deferred inflows of resources - OPEB
Total adjustments
Net cash provided by operating activities
Non -Cash Investing, Capital, and Financing Activities
Capital assets contributed by other funds
Business -Type Activities - Enterprise Funds
Nonmajor
Enterprise
Golf Fund
Water Sewer Course Solid Waste
$ 1,389,817 $ (783,720) $ (68,313) $ (248,012)
187,977
644,643
204,892 -
260,137
(45,194)
(50,741) -
(646)
-
20,388 -
22,453
(9,876)
-
(60,464)
(27,838)
-
(16,636)
(16,577)
-
(258,613)
324,113
(26,338) -
17,908
4,319
(7,846) -
(81,923)
-
-
-
-
(5,940) -
(24,581)
-
(16,121) -
4,659
7,081
-
891,759
372,792
-
(255,714)
(57,677)
-
(21,440)
(10,782)
-
170,005
132,104
-
834,881
1,317,108
118,294 -
$ 2,224,698
$ 533,388 $
49,981 $ (248,012)
See accompanying Notes to the Financial Statements.
42
Page 159 of 328
City of El Segundo
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended September 30, 2020
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by operating activities:
Depreciation
(Increase) decrease in:
Accounts receivable
Inventory
Prepaid items
Deferred outflows of resources - pension
Deferred outflows of resources - OPEB
Increase (decrease)in:
Accounts payable
Accrued liabilities
Retentions payable
Unearned revenue
Deposits payable
Claims and judgements
Compensated absences payable
Net pension liability
Net other postemployment liability
Deferred inflows of resources - pension
Deferred inflows of resources - OPEB
Total adjustments
Net cash provided by operating activities
Non -Cash Investing, Capital, and Financing Activities
Capital assets contributed by other funds
Business -Type
Activities -
Governmental
Enterprise
Activities
Funds
Internal
Total
Service Funds
$ 289,772
$ (268,321)
1,037,512
873,996
164,202
(39,431)
19,742
-
12,577
(42,617)
(88,302)
(11,998)
(33,213)
(2,952)
39,162 (1,057,673)
14,381 (133,512)
(81,923) -
(5,940) -
(40,702) -
1,626,000
11,740
-
1,264,551
281,589
(313,391)
(36,550)
(32,222)
(1,732)
302,109
28,495
2,270,283
1,483,615
$ 2,560,055 $
1,215,294
$ - $
265,589
(Concluded)
43
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44
Page 161 of 328
FIDUCIARY FUND
FINANCIAL STATEMENTS
Agency Fund
Project Deposits Fund (Refundable) - Accounts for project deposits from developers which will be refundable
after the projects are done.
45
Page 162 of 328
City of El Segundo
Statement of Fiduciary Net Position
Agency Fund
September 30, 2020
ASSETS:
Cash and investments
Accounts receivable
Total assets
LIABILITIES:
Accounts payable
Deposits payable
Total liabilities
Agency
Funds
426,363
617.00
$ 426,980
$ 34,131
392,849
$ 426,980
See accompanying Notes to the Financial Statements.
46
Page 163 of 328
NOTES TO THE
FINANCIAL STATEMENTS
47
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48
Page 165 of 328
City of El Segundo
Index to the Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Pate
Note 1 - Organization and Summary of Significant Accounting Policies ................................................... 51
A.
Financial Reporting Entity..........................................................................................................................
51
B.
Basis of Accounting and Measurement Focus............................................................................................
52
C.
Cash and Investments.................................................................................................................................
55
D.
Fair Value Measurement............................................................................................................................
56
E.
Interfund Transactions................................................................................................................................
56
F.
Inventories and Prepaid Items....................................................................................................................
56
G.
Capital Assets.............................................................................................................................................
56
H.
Interest Payable...........................................................................................................................................
57
I.
Unearned Revenue......................................................................................................................................
57
J.
Compensated Absences..............................................................................................................................
57
K.
Pensions......................................................................................................................................................58
L.
Other Postemployment Benefits ("OPEB") Plan........................................................................................
59
M.
Claims Payable...........................................................................................................................................
59
N.
Long -Term Debt.........................................................................................................................................
59
O.
Property Taxes............................................................................................................................................
60
P.
Net Position and Fund Balances.................................................................................................................
60
Q.
Use of Estimates.........................................................................................................................................
61
R.
New Accounting Pronouncements.............................................................................................................
62
Note 2 - Budgetary Compliance and Deficit Fund Balances.......................................................................
65
A.
Excess of Expenditures over Appropriations.............................................................................................
65
B.
Deficit Net Positions and Fund Balances...................................................................................................
66
Note 3 - Cash and Investments....................................................................................................................... 66
A. Deposits...................................................................................................................................................... 67
B. Investments................................................................................................................................................. 68
C. Fair Value Measurement............................................................................................................................ 69
D. Risk Disclosures......................................................................................................................................... 69
Note 4 - Notes and Loans Receivables........................................................................................................... 71
A. Loans to Employees.................................................................................................................................... 71
B. Residential Rehabilitation Program............................................................................................................ 71
Note 5 - Interfund Activities........................................................................................................................... 71
A. Fund Financial Statements.......................................................................................................................... 71
49
Page 166 of 328
City of El Segundo
Index to the Notes to the Basic Financial Statements (Continued)
For the Year Ended September 30, 2020
Pate
Note6 - Capital Assets....................................................................................................................................
73
A. Governmental Activities.............................................................................................................................
73
B. Business -Type Activities............................................................................................................................
74
C. Discretely Presented Component Unit........................................................................................................
75
Note7 - Long -Term Liabilities.......................................................................................................................
75
A. Governmental Activities.............................................................................................................................
75
B. Business -Type Activities............................................................................................................................
77
Note8 - Retirement Plans...............................................................................................................................
78
A. Summary.....................................................................................................................................................78
B. California Public Employees' Retirement System
..................................................................................... 79
C. Public Agency Retirement System.............................................................................................................
88
Note 9 - Other Post -Employment Health Benefits.......................................................................................
94
Note10 - Risk Management...........................................................................................................................
99
Note11 - Joint Venture.................................................................................................................................
100
Note 12 - Commitments and Contingencies................................................................................................
101
Note 13 - Classification of Fund Balances...................................................................................................
103
50
Page 167 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies
The basic financial statements of the City of El Segundo, California (the "City"), have been prepared in
conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") as
applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted
standard setting body for establishing governmental accounting and financial reporting principles. The following
is a summary of the significant policies:
A. Financial Reporting Entity
The City was incorporated on January 18, 1917, under the laws of the State of California and enjoys all the
rights and privileges applicable to a general law city. The City is governed by an elected five -member board.
In evaluating how to define the City for financial reporting purposes, management has considered all
potential component units. The primary criteria for including a potential component unit within the reporting
entity are the governing body's financial accountability and a financial benefit or burden relationship and
whether it is misleading to exclude. A primary government is financially accountable and shares a financial
benefit or burden relationship, if it appoints a voting majority of an organization's governing body and it is
able to impose its will on the organization, or if there is a potential for the organization to provide specific
financial benefits to, or impose specific financial burdens on the primary government. A primary
government may also be financially accountable if an organization is fiscally dependent on the primary
government regardless of whether the organization has a separately elected governing board, a governing
board appointed by a higher level of government, or a jointly appointed board, and there is a potential for
the organization to provide specific financial benefits to, or impose specific financial burdens on the primary
government. The City has no blended component units.
Discretely Presented Component Unit
Discretely presented component units are entities that are legally separate from the primary government but
for which omission would cause the primary government's financial statements to be misleading or
incomplete. The component units below do not meet the criteria for blended presentation and therefore, they
are reported separately from the primary government.
The El Segundo Senior Citizen Housing Corporation, dba Park Vista ("the Corporation"), is a California
nonprofit public benefit corporation created by the City of El Segundo in 1984 to operate a low income
senior apartment complex. The apartment complex was built and funded by the City. In 1987, the complex
was ready for occupancy. Rather than operate the complex as a fund of the City, the City elected to form the
Corporation to facilitate better communication with the residents who live there. The Corporation is
managed by a seven -member Board of Directors, which is appointed by the City Council. The City is
financially accountable and has the ability to impose its will on the Corporation which has the potential to
provide specific financial benefits to, or impose specific financial burdens on, the City. As a result, the
activities of the Corporation have been discretely presented. All members of the Board of Directors are
unpaid volunteers.
51
Page 168 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
A. Financial Reporting Entity (Continued)
Discretely Presented Component Unit (Continued)
The Corporation's fiscal year end is December 31, which is different than the City's fiscal year end.
Additionally, the financial statements are audited by other independent auditors. Separate financial
statements may be obtained at City Hall, City of El Segundo, 350 Main Street, El Segundo, CA 90245.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for by providing a separate set of self -
balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses,
as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes
for which they are to be spent and the means by which spending activities are controlled.
The statement of net position reports separate sections for Deferred Outflows of Resources and Deferred
Inflows of Resources, when applicable.
Deferred Outflows of Resources represent outflows of resources (consumption of net position) that
apply to future periods and that, therefore, will not be recognized as an expense until that time. The City
has items related to pensions and OPEB that qualify for reporting in this category. See Notes 1K, 1L, 8,
and 9 for details on these balances.
Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to
future periods and that, therefore, are not recognized as revenue until that time. The City has items
related to pensions and OPEB that qualify for reporting in this category. See Notes 1K, 1L, 8, and 9 for
details on these balances.
Government — Wide Financial Statements
The Government -Wide Financial Statements are presented on an "economic resources" measurement focus
and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources,
liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and
long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of
Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized
in the period in which they are earned while expenses are recognized in the period in which the liability is
incurred. Fiduciary activities are not included in these statements.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note t — Organization and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Government — Wide Financial Statements (Continued
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal
balances in the Statement of Net Position have been eliminated except those representing balances between
the governmental activities and the business -type activities, which are presented as internal balances and
eliminated in the total primary government column. In the Statement of Activities, internal service fund
transactions have been eliminated; however, those transactions between governmental and business -type
activities have not been eliminated. The following interfund activities have been eliminated:
• Due from and to other funds
• Transfers in and out
Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities
are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances
present increases (revenues and other financing sources) and decreases (expenditures and other financing
uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the
accounting period in which they become both measurable and available to finance expenditures of the
current period.
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 these purposes, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated
as susceptible to accrual by the City, are property taxes, other local taxes, franchise fees, forfeitures and
penalties, motor license fees, rents and concessions, interest revenue, and state and federal grants and
subventions. Expenditures are recorded in the accounting period in which the related fund liability is
incurred.
Reconciliations of the fund financial statements to the Government -Wide Financial Statements are provided
to explain the differences.
Certain indirect costs are included as part of the program expenses reported for individual functions and
activities.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note t — Organization and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
The City reports the following major governmental fund:
➢ General Fund - The General Fund is used to account for and report all financial resources not
accounted for and reported in another fund.
The City's fund structure also includes the following fund types:
Special Revenue Funds are used to account for proceeds of specific revenue sources that are legally
restricted or otherwise assigned for specific purposes.
Capital Projects Funds are used to account for resources restricted or assigned for capital improvements.
Debt Service Funds are used to account for resources restricted or assigned for expenditure of principal and
interest.
Proprietary Fund Financial Statements
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all assets, deferred outflows of resources, liabilities, and deferred inflows
of resources (whether current or noncurrent) are included on the Statement of Net Position. The Statement
of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses)
in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which
they are earned while expenses are recognized in the period in which the liability is incurred.
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 proprietary
funds are charges to customers for sales and services. Operating expenses for the proprietary funds include
the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
A separate column representing internal service funds is also presented in these statements. However,
internal service balances and activities have been combined with the governmental activities and business -
type activities in the Government -Wide Financial Statements. The City's internal service funds include three
individual funds which provide services directly to other City funds. These areas of service include general
liability, workers' compensation, and equipment replacement.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued
The City reports the following proprietary funds:
Enterprise Funds
➢ Water Fund - The Water Fund, which is reported as a major fund, accounts for water utility
revenues, including service fees and installation charges, and all expenses related to the construction
and maintenance of the City's water distribution system.
➢ Sewer Fund - The Sewer Fund, which is reported as a major fund, accounts for user charges, fees
and all operating costs associated with the operation, maintenance, upgrade and periodic
reconstructions of the City's wastewater collection system.
➢ Golf Course Fund — The Golf Course Fund, which is reported as a major fund, accounts for
revenues from user fees and expenses incurred for the operation and maintenance of "The Lakes at
El Segundo" golf facility.
➢ Solid Waste Fund — The Solid Waste Fund, which is reported as a nonmajor fund, accounts for
revenues and expenses related to solid waste.
Internal Service Funds
The Internal Service Funds account for financing of goods and services provided by one department to other
departments of the City on a cost -reimbursement basis.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Fiduciary Net Position. The City's fiduciary fund
is an agency fund, which is custodial in nature (assets equal liabilities) and does not involve measurement of
results of operations. The agency fund is accounted for using the accrual basis of accounting.
C. Cash and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturity of three months or less from the date of acquisition. All cash and
investments of proprietary funds are held in the City's investment pool. These cash pools have the general
characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are
considered cash and cash equivalents for Statement of Cash Flows purposes.
Investments are stated at fair value (quoted market price or best available estimate thereof).
6SI
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
D. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure
about fair value measurement. Investments, unless otherwise specified at fair value in the financial
statements, are categorized based upon the level of judgment associated with the inputs used to measure
their fair value. Levels of inputs are as follows:
➢ Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active
markets at the measurement date.
➢ Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the assets or
liabilities through corroboration with market data at the measurement date.
➢ Level 3 — Unobservable inputs that reflect management's best estimate of what market
participants would use in pricing the assets or liabilities at the measurement date.
E. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as "due from/to other funds" (i.e., current portion of interfund loans). Any
residual balances outstanding between the governmental activities and business -type activities are reported
in the Government -Wide Financial Statements as "internal balances".
F. Inventories and Prepaid Items
Inventories within the various fund types consist of materials and supplies which are valued at cost on a
first -in, first -out basis. Reported expenditures reflect the consumption method of recognizing inventory -
related expenditures.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both the government -wide and fund financial statements by using purchase method.
A nonspendable fund balance has been reported in the governmental funds to show that inventories and
prepaid items do not constitute "available spendable resources", even though they are a component of
current assets.
G. Capital Assets
In the Government -Wide Financial Statements, capital assets are recorded at cost where historical records
are available and at an estimated original cost where no historical records exist. Donated capital assets are
valued at their acquisition value. City policy has set the capitalization threshold for reporting capital assets
at $5,000.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
G. Capital Assets (Continued)
The City defines infrastructure assets as the basic physical assets that allow the City to function. The assets
include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. Each major infrastructure
system can be divided into subsystems. For example, the street system can be subdivided into pavement,
curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not
delineated in the basic financial statements. The appropriate operating department maintains information
regarding the subsystems.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets
acquired under capital lease are capitalized at the net present value of the total lease payments.
For all infrastructure systems, the City elected to use the "Basic Approach".
Capital assets used in operations are depreciated over their estimated useful lives using the straight-line
method. The lives used for depreciation purposes are as follows:
Buildings/structures and improvements 50 years
Vehicles and equipment 5-50 years
Infrastructure 25-100 years
H. Interest Payable
In the Government -Wide Financial Statements, interest payable on long-term debt is recognized as the
liability is incurred for governmental activities and business -type activities.
In the Fund Financial Statements, only proprietary fund types recognize the interest payable when the
liability is incurred.
I. Unearned Revenue
Unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical
transactions recorded as unearned revenues are prepaid charges for services and grants received but not yet
earned.
J. Compensated Absences
It is the City's policy to accrue annual leave when incurred in the Government -Wide Financial Statements
and the proprietary funds. In governmental funds, the costs for annual leave that are expected to be
liquidated with expendable available financial resources are reported as an expenditure and reported as a
liability of the governmental fund only if they have matured.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
J. Compensated Absences (Continued)
A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused
balances will result in termination payments. This is estimated by including in the liability the unused
balances of employees currently entitled to receive termination benefits, as well as those who are expected
to become eligible to receive termination benefits as a result of continuing their employment with the City.
Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely
upon the occurrence of a future event (illness) which is outside the control of the City and the employee.
K. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the plans
and additions to/deductions from the plans' fiduciary net position have been determined on the same basis
as they are reported by the plans (Note 8). For this purpose, benefit payments (including refunds of
employee contributions) are recognized when due and payable in accordance with benefit terms.
Investments are reported at fair value.
The following timeframes are used for pension reporting:
(, n1 PF.R S
Valuation Date
Measurement Date
Measurement Period
PARS
Valuation Date
Measurement Date
Measurement Period
June 30, 2019
June 30, 2020
July 1, 2019 to June 30, 2020
June 30, 2018
September 30, 2019
October 1, 2018 to September 30, 2019
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. The difference between projected
and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line
over the average expected remaining service lives of all members that are provided with benefits (active,
inactive, and retired) as of the beginning of the measurement period.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
L. Other Postemployment Benefits ("OPEB') Plan
For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred 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 Plan's fiduciary net position have been determined
on the same basis as they are reported by the Plan (Note 9). For this purpose, the OPEB Plan recognizes
benefit payments when due and payable in accordance with the benefit terms. Investments are reported at
fair value, except for money market investments, which are reported at amortized cost.
The following timeframes are reported OPEB reporting:
OPEB
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in
OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for
the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred
inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization
period differs depending on the sources of gain or loss. The difference between projected and actual
earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line
basis over the average expected remaining service lives of all members that are provided with benefits
(active, inactive, and retired) at the beginning of the measurement period.
M. Claims Payable
Claims payable in the Internal Service Fund represents estimates of claims against the City. The estimated
claims payable represents the City's best estimate of the amount to be paid on workers' compensation and
general liability claims. Losses for claims incurred but not reported are also recorded if the probable amount
of loss can be reasonably estimated.
N. Long -Term Debt
In the Government -Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt
and other long-term obligations are reported as liabilities in the appropriate activities. Bond premium and
discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds
payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed
when incurred.
The governmental fund financial statements do not present long-term liabilities. Consequently, long-term
debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the
Government -Wide Statement of Net Position.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1 — Organization and Summary of Significant Accounting Policies (Continued)
O. Property Taxes
Property taxes are attached as an enforceable lien on property at January 1. Taxes are levied on July 1 and
are payable in two installments on December 10 and April 10. Any unpaid amounts at the end of the fiscal
year are recorded as accounts receivable. The County of Los Angeles bills and collects the property taxes
and substantially remits the amount due to the City in installments during the year. Historically, the City has
received substantially all of the taxes levied within two years from the date they are levied. The County is
permitted by state law (Article XIIIA of the California Constitution) to levy taxes at one percent (1%) of full
market value (at time of purchase) and can increase the property's value no more than two percent (2%) per
year.
P. Net Position and Fund Balances
In the Government -Wide Financial Statements and proprietary fund financial statements, net position is
classified as follows:
Net Investment in Capital Assets — This component of net position consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the
acquisition, construction, or improvement of those assets.
Restricted — This component of net position consists of restricted assets reduced by liabilities and
deferred outflows and inflows of resources related to those assets.
Unrestricted — This component of net position is the amount of the assets, deferred outflows of
resources, liabilities, and deferred inflows of resources that are not included in the determination of net
investment in capital assets or the restricted component of net position.
In the Governmental Fund Financial Statements, fund balances are classified as follows:
Nonspendable — Nonspendable fund balances are items that cannot be spent because they are not in
spendable form, such as prepaid items and inventories, or items that are legally or contractually required
to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally
enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through
debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions
imposed by law through constitutional provisions or enabling legislation.
Committed — Committed fund balances encompass the portion of net fund resources, the use of which is
constrained by limitations that the government imposes upon itself at its highest level of decision
making, normally the governing body, and that remain binding unless removed in the same manner. The
City Council is considered the highest authority for the City. Adoption of a resolution by the City
Council is required to commit resources or to rescind the commitment.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note t — Organization and Summary of Significant Accounting Policies (Continued)
P. Net Position and Fund Balances (Continued)
Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the
government's intended use of resources. Assignment of resources can be done by the highest level of
decision making or by a committee or official designated for that purpose. The City Council has
authorized by resolution the City Finance Officer for that purpose.
Unassijzne — This amount is for any portion of the fund balances that do not fall into one of the above
categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In
other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.
However, in governmental funds other than General Fund, if expenditures incurred for specific purposes
exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to
report a negative unassigned fund balance in that fund.
Spending Policy
Government -Wide Financial Statements and the Proprietary Fund Financial Statements
When expenses are incurred for purposes for which both restricted and unrestricted components of net
position are available, the City's policy is to apply the restricted component of net position first, then the
unrestricted component of net position as needed.
Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned
fund balances are available, the City's policy is to apply in the following order, except for instances wherein
an ordinance specifies the fund balance:
➢ Restricted
➢ Committed
➢ Assigned
➢ Unassigned
Q. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual
results could differ from those estimates.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
R. New Accounting Pronouncements
Current Year Standards
In May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authority
Guidance, which was effective immediately. This statement provided temporary relief to governments and
other stakeholders in light of the COVID-19 pandemic and postponed the effective dates of certain
provisions in Statements and Implementation Guides that first became effective or are scheduled to become
effective for periods beginning after June 15, 2018, and later.
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans —an amendment
of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. Paragraph 4 of this
statement requires that for purposes of determining whether a primary government is financially accountable
for a potential component unit, except for a potential component unit that is a defined contribution pension
plan, a defined contribution OPEB plan, or an other employee benefit plan (for example, certain Section 457
plans), the absence of a governing board should be treated the same as the appointment of a voting majority
of a governing board if the primary government performs the duties that a governing board typically would
perform.
Paragraph 5 of this statement also requires that the financial burden criterion in paragraph 7 of Statement
No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB
plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No.
67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans, respectively.
The requirements of these paragraphs did not impact the City.
Pending Accounting Standards
GASB has issued the following statements, which may impact the City's financial reporting requirements in
the future:
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. This statement establishes criteria for
identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on
(1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with
whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units
and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria
should be reported in a fiduciary fund in the financial statements.
This statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an
event has occurred that compels the government to disburse fiduciary resources. Events that compel a
government to disburse fiduciary resources occur when a demand for the resources has been made or when
no further action, approval, or condition is required to be taken or met by the beneficiary to release the
assets. The requirements of this statement are effective for reporting periods beginning after December 15,
2019, and early application is encouraged.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
R. New Accounting Pronouncements (Continued)
Pending Accountine Standards (Continued
In June 2017, GASB issued Statement No. 87, Leases. This statement requires recognition of certain lease
assets and liabilities for leases that previously were classified as operating leases and recognized as inflows
of resources or outflows of resources based on the payment provisions of the contract. It establishes a single
model for lease accounting based on the foundational principle that leases are financings of the right to use
an underlying asset for leases with a term of more than 12 months. Under this statement, a lessee is required
to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a
lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of
information about governments' leasing activities. For leases with a term of 12 months or less, lessees and
lessors should recognize short-term lease payments as outflows of resources or inflows of resources,
respectively, based on the payment provisions of the lease contract. The requirements of this statement are
effective for reporting periods beginning after June 15, 2021, and early application is encouraged.
In August 2018, GASB issued Statement No. 90, Majority Equity Interests — an amendment of GASB
Statements No. 14 and No. 61. This statement defines a majority equity interest and specifies that a majority
equity interest in a legally separate organization should be reported as an investment if a government's
holding of the equity interest meets the definition of an investment. A majority equity interest that meets the
definition of an investment should be measured using the equity method, unless it is held by a special-
purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including
permanent and term endowments) or permanent fund. Those governments and funds should measure the
majority equity interest at fair value. For all other holdings of a majority equity interest in a legally separate
organization, a government should report the legally separate organization as a component unit, and the
government or fund that holds the equity interest should report an asset related to the majority equity
interest using the equity method. This statement also requires that a component unit in which a government
has a 100% equity interest account for its assets, deferred outflows of resources, liabilities, and deferred
inflows of resources at acquisition value at the date the government acquired a 100% equity interest in the
component unit.
The requirements of this statement are effective for reporting periods beginning after December 15, 2019,
and early application is encouraged. The requirements should be applied retroactively, except for the
provisions related to (1) reporting a majority equity interest in a component unit and (2) reporting a
component unit if the government acquires a 100% equity interest. Those provisions should be applied on a
prospective basis.
In May 2020, GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements.
This statement provides guidance on the accounting and financial reporting for subscription -based
information technology arrangements (SBITAs) for government end users (governments). This statement
(1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset —an intangible
asset —and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other
than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures
regarding a SBITA.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 1— Organization and Summary of Significant Accounting Policies (Continued)
R. New Accounting Pronouncements (Continued)
Pending Accounting Standards (Continued)
The requirements of this statement are effective for fiscal years beginning after June 15, 2022, and all
reporting periods thereafter. Early application is encouraged. Assets and liabilities resulting from SBITAs
should be recognized and measured using the facts and circumstances that existed at the beginning of the
fiscal year in which this statement is implemented.
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans —an amendment
of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. Paragraph 6
through 9 of this statement requires that a Section 457 plan be classified as either a pension plan or an other
employee benefit plan depending on whether the plan meets the definition of a pension plan and clarifies
that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to
determine whether those arrangements should be reported as fiduciary activities. The requirements of
paragraph 6 through 9 of this statement are effective for fiscal years beginning after June 15, 2021. Earlier
application of these requirements is encouraged and permitted.
This statement supersedes the remaining provisions of Statement No. 32, Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding
investment valuation requirements for Section 457 plans. As a result, investments of all Section 457 plans
should be measured as of the end of the plan's reporting period in all circumstances. The requirements of
paragraph 3 of this statement are effective for reporting periods beginning after June 15, 2021. Earlier
application of those requirements is encouraged and permitted.
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 2 — Budgetary Compliance and Deficit Fund Balances
A. Excess of Expenditures Over Appropriations
The following funds had expenditures in excess of appropriations:
Fund
Excess of
Expenditures over
Appropriations Expenditures Appropriations
Major Governmental Funds:
General Fund
General government:
City council
$ 308,432
$ 308,625
$ (193)
City attorney
585,450
753,433
(167,983)
Planning
1,076,748
1,119,803
(43,055)
Non -departmental
6,352,948
7,213,349
(860,401)
Public Safety:
Police
20,490,344
21,275,768
(785,424)
Fire
15,848,044
17,085,210
(1,237,166)
Public works:
Solid waste
378,937
465,356
(86,419)
Debt service:
Principal retirement
-
54,286
(54,286)
Interest
-
139,714
(139,714)
Nonmajor Governmental Funds:
Residential Sound Insulation Special Revenue Fund
Community and cultural
-
465
(465)
State Grants Special Revenue Fund
Community and cultural
40,000
53,734
(13,734)
Senior Housing
Community and culture
14,113
78,444
(64,331)
Facility Lease Debt Service Fund
Debt service:
Principal retirement
320,000
325,995
(5,995)
The excess expenditures were covered by carryover
funds from the
prior year, sufficient revenues, and/or
transfers from other available funds.
65
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 2 — Budgetary Compliance and Deficit Fund Balances (Continued)
B. Deficit Net Positions and Fund Balance
Funds with deficit fund balances and net position at September 30, 2020 are as follows:
Deficit
Federal Grants Special Revenue Fund
$ (46,117)
Solid Waste Enterprise Fund (nonmajor fund)
(248,012)
Liabilty Insurance Internal Service Fund
(425,063)
Workers' Compensation Internal Service Fund
(4,490,440)
The City expects to eliminate the Special Revenue Fund deficits when future reimbursements are received
from granting agencies. The Solid Waste Enterprise Fund expects to eliminate the deficit from future user
charges. The Workers' Compensation Internal Service Fund deficit is expected to be eliminated through
future interdepartmental charges.
For the fiscal year ended September 30, 2020, the Governmental Activities of the City reported a deficit
unrestricted net position of $(134,246,639). This deficit is largely a result of the implementation of GASB
Statement No. 68 in 2015 and GASB Statement No. 75 in 2018 that required the City to report aggregate net
pension liabilities and net OPEB liability on the financial statements. The City's aggregate net pension
liability at September 30, 2020 is $153,431,492, of which $149,353,661 is payable from Governmental
Activities. The City's net OPEB liability at September 30, 2020 is $29,126,015, of which $27,692,790 is
payable from Governmental Activities.
Note 3 — Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all
funds.
Primary Government
The City had the following cash and investments at September 30, 2020:
Government -Wide Statement
of Net Position
Governmental Business -Type
Activities Activities
Cash and investments $ 55,207,959
Resitricted cash 4,482,363
36,711,853
Fiduciary
Fund Statement
of Net Position Total
426,363
$ 92,346,175
4,482,363
Total cash and investments $ 59,690,322 $ 36,711,853 $ 426,363 $ 96,828,538
66
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 3 — Cash and Investments (Continued)
Primary Government (Continued)
The City's cash and investments at September 30, 2020, in more detail:
Cash and cash equivalents:
Petty cash
$ 13,810
Demand deposits
5,104,845
Cash with custodial agent
249,177
Restricted cash in PARS 115 Trust
4,482,363
Total cash and cash equivalents
9,850,195
Investments:
CAMP
84,351
Corporate notes
8,450,847
Negotiable certificates of deposit
23,139,906
Local Agency Investment Fund
35,893,104
State obligations
6,674,397
Supranational obligations
1,276,653
U.S. Government sponsored enterprise securities
11,459,085
Total investments
86,978,343
Total cash and investments
$ 96,828,538
Discretely Presented Component Unit
Cash and investments of the discretely presented component unit as of December 31, 2019 consist of the
following:
Deposits with financial institutions $1,264,721
A. Deposits
The carrying amounts of the City's demand deposits were $5,104,845 at September 30, 2020. Bank balances
at that date were $6,201,967, the total amount of which was collateralized or insured with accounts held by
the pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law
also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of
150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits,
deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation ("FDIC").
The City did not waive the collateral requirement for deposits insured by FDIC.
The City follows the practice of pooling cash and investments of all funds. Interest income earned on pooled
cash and investments is allocated on an accounting period basis to the various funds based on the period -end
cash and investment balances.
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Page 184 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 3 — Cash and Investments (Continued)
B. Investments
Under the provision of the City's investment policy, and in accordance with California Government Code,
the following investments are authorized:
Maximum
Authorized Investment Type
Maturity
United States Treasury Obligations
5 years
U.S. Government Sponsored Enterprise Securities
5 years
State and Local Agency Bonds
5 years
Bankers' Acceptances
180 days
Commercial paper
270 days
Negotiable certificates of deposit
5 years
Local Agency Investment Fund ("LAIF")
N/A
Non-negotiable certificates of deposits
5 years
Medium -term notes
5 years
Mutual funds
N/A
Money market mutual funds
N/A
Supranational obligations
5 years
Joint Powers Authority Pool
N/A
N/A - Not Applicable
Maximum
Maximum
Percentage
Investment in
of Portfolio *
One Issuer
No Limit
No Limit
No Limit
No Limit
10%
No Limit
40%
No Limit
10%
3%
30%
No Limit
No Limit
$65M
No Limit
No Limit
15%
3%
5%
10%
5%
10%
10%
No Limit
30%
No Limit
* Excluding amounts held by bond trustees that are not subject to California Government Code restrictions.
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under
the oversight of the Treasurer of the State of California. The City's investments with LAIF at September 30,
2020, included a portion of the pool funds invested in Structured Notes and Asset -Backed Securities:
Structured Notes: debt securities (other than asset -backed securities) whose cash flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have
embedded forwards or options.
Asset -Backed Securities: generally mortgage -backed securities that entitle their purchasers to receive a
share of the cash flows from a pool of assets such as principal and interest repayments from a pool of
mortgages (for example, Collateralized Mortgage Obligations) or credit card receivables.
As of September 30, 2020, the City had $35,893,104 invested in LAIF, which had invested 1.58% of the
pool investment funds in Structured Notes and Asset -Backed Securities. The fair value of the City's portion
in the pool is the same as the value of the pool shares.
Investment in Section 115 Pension Trust - The City established a trust account with Public Agency
Retirement Services (PARS) to hold assets that are legally restricted for use in administering the City's
Ca1PERS pension plans. The Section 115 Pension Trust's specific cash and investments are managed by a
third -party portfolio manager under guidelines approved by the City.
68
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 3 — Cash and Investments (Continued)
B. Investments (Continued)
Investment in California Asset Management Program (CAMP)
The City is a voluntary participant in the California Asset Management Program (CAMP) that is regulated
by the California Government Code. 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 CAMP for the entire CAMP portfolio (in relation to the amortized cost of that portfolio). The
balance available for withdrawal is based on the accounting records maintained by CAMP, which are
recorded on an amortized cost basis.
C. Fair Value Measurement
As of September 30, 2020, investments are reported at fair value. The following table presents the fair value
measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in
which the fair value measurements fall at September 30, 2020:
Measurement
Significant
Other Observable
Investment Type
Inputs (Level 2)
Uncategorized
Total
CAMP
$ -
$ 84,351
$ 84,351
Corporate notes (1)
8,450,847
-
8,450,847
Negotiable certificates of deposit (t)
23,139,906
-
23,139,906
Local Agency Investment Fund
-
35,893,104
35,893,104
State obligations (1)
6,674,397
-
6,674,397
Supranational obligations (1)
1,276,653
-
1,276,653
U.S. Government sponsored enterprise securities (t)
11,459,085
-
11,459,085
Total
$ 51,000,888
$ 35,977,455
$ 86,978,343
(1) Pricing based on Interactive Data Corporation
All investments classified in Level 2 of the fair value hierarchy are valued using specified fair market value
factors or institutional bond quotes.
D. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates,
the City's investment policy limits investments to a maximum maturity of five years. At September 30,
2020, the City had the following investment maturities:
Investment Maturities (in Years)
Investment Type Fair Value Less Than 1 Year
1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years
CAMP $ 84,351 $ 84,351
$ - $ - $ - $ -
Corporate notes 8,450,847 2,027,925
1,555,060 3,288,512 1,057,570 521,780
Negotiable certificates of deposit 23,139,906 5,957,804
5,769,026 4,616,409 5,241,423 1,555,244
Local Agency Investment Fund 35,893,104 35,893,104
- - - -
State obligations 6,674,397 -
2,132,492 317,895 4,224,010
Supranational obligations 1,276,653 504,880
771,773 -
U.S. Government sponsored enterprise securities 11,459,085 2,015,915
2,042,640 2,109,860 5,290,670 -
Total $ 86,978,343 $ 46,483,979
$ 12,270,991 $ 10,332,676 $ 15,813,673 $ 2,077,024
69
Page 186 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 3 — Cash and Investments (Continued)
A Risk Disclosures (Continued)
Custodial Credit Risk - For deposits, custodial credit risk is the risk that, in the event of the failure of a
depository financial institution, the City 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. For an investment, custodial credit risk is
the risk that, in the event of the failure of the counterparty (e.g., broker -dealer), the City will not be able to
recover the value of its investments or collateral securities that are in the possession of an outside party.
Concentration of Credit Risk - The City did not have any investments in any one issuer that represent 5% or
more of the City's total investments as of September 30, 2020.
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 required by (where applicable) the
California Government Code or the City's investment policy and the actual rating (by Standard & Poor's) as
of year-end for each investment type:
Minimum
Legal
Investment Type Rating Total AAA
CAMP N/A $ 84,351 $ 84,351
Corporate notes A 8,450,847 -
Negotiable certificates of deposit A 23,139,906 -
Local Agency Investment Fund N/A 35,893,104 -
State obligations N/A 6,674,397 536,265
Supranational obligations AA 1,276,653 1,276,653
U.S. Government sponsored
AA- to AA+ BBB+ to A+ Unrated
2,763,127 5,687,720 -
- - 23,139,906
- - 35,893,104
4,003,607 1,602,240 532,285
enterprise securities N/A 11,459,085 - 10,938,430 - 520,655
Total $ 86,978,343 $ 1,897,269 $ 17,705,164 5 7,289,960 $ 60,085,950
Investment Type
Corporate notes
State obligations
U.S. Government sponsored
enterprise securities
Total
Investment Type
Money market mutual fund
Corporate notes
State obligations
Total
AA+ AA AA- Total
$ 1,042,650 $ 1,048,290 $ 672,187 $ 2,763,127
- 2,960,247 1,043,360 4,003,607
10,938,430 - - 10,938,430
$ 11,981,080 $ 4,008,537 $ 1,715,547 $ 17,705,164
A+ A A- BBB+ Total
$ 2,079,975 $ 2,055,000 $ 530,025 $ 1,022,720 $ 5,687,720
- 1,602,240 - - 1,602,240
$ 2,079,975 $ 3,657,240 $ 530,025 $ 1,022,720 $ 7,289,960
70
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 4 — Notes and Loans Receivables
A. Loans to Employees
The balance of notes receivable in the General Fund consists of loans made to employees for computer
purchases. Participants in the computer loan program is eligible for an initial, interest free loan in the
amount of $4,000. Subsequent loans or amount in excess of the above maximum interest free loan, would be
at the currently interest rate of 3%. All loans would include a 36-month repayment term. The balance at
September 30, 2020 was $17,500.
B. Residential Rehabilitation Program
The balance of notes receivable in the other governmental funds consists of minor home repair loans made
to qualifying homeowners residing within the City. The balance at September 30, 2020 was $49,405.
Residential Rehabilitation Program
CDBG Loans
Total
Note 5 — Interfund Activities
A. Fund Financial Statements
Balance
October 1, 2019
Additions
Deletions
Balance
September 30, 2020
$ 54,405 $ - $ (5,000) $ 49,405
$ 54,405 $ - $ (5,000) $ 49,405
Due From/To Other Funds - At September 30, 2020, the City had the following due from/to other funds:
Due From Other Funds
Due To Other Funds
General Fund
Nonmajor Governmental Funds
$ 63,969
Golf Course Enterprise Fund
160,432
Nonmajor Enterprise Fund
184,960
Total
$ 409,361
The interfund amounts from the General Fund to the Nonmajor Governmental Funds and Golf Course
Enterprise Fund are for short-term loans to cover operations.
Advance From/To Other Funds - At September 30, 2020, the City has the following advance
from/advance to other funds, which represents the advance to the Golf Course Enterprise Fund to address
negative cash:
Advance To Other Funds
Equipment Replacement
Internal Service Fund
Advance From Other Funds
Golf Course
Enterprise Fund
$ 5,577,910
71
Page 188 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 5 — Interfund Activities (Continued)
A. Fund Financial Statements (Continued)
Transfers In/Out - At September 30, 2020, the City had the following transfers in/out, which arise in the
normal course of operations:
Transfers Out
Governmental Funds:
Major Funds:
General Fund
Nonmajor Governmental Funds
Total
Transfers In
Governmental Funds
Nonmajor
General Governmental
Fund Funds Total
$ - $ 1,249,000 $ 1,249,000
140,000 140,000
$ 140,000 $ 1,249,000 $ 1,389,000
Administratively, resources may be transferred from one City fund to another. The purpose of the
$1,249,000 of transfers was for subsidizing other funds with the City Council's approvals, such as capital
projects. The $140,000 transfer from the Traffic Safety Nonmajor Special Revenue Fund to the General
Fund provides reimbursement for eligible expenditures.
72
Page 189 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 6 — Capital Assets
A. Governmental Activities
A summary of changes in capital assets for the governmental activities for the year ended
September 30, 2020 was as follows:
Governmental Activities
Balance Balance
September 30, 2019 Additions Deletions September 30, 2020
Capital assets, not being depreciated:
Land and rights of way $ 29,522,040 $ - $ - $ 29,522,040
Construction in progress 227,326 1,214,123 (1,277,551) 163,898
Total capital assets, not being depreciated 29,749,366 1,214,123 (1,277,551) 29,685,938
Capital assets, being depreciated:
Buildings and improvements 38,548,209 38,548,209
Vehicles and equipment 23,088,565 1,018,782 24,107,347
Infrastructure 92,740,737 1,152,960 - 93,893,697
Total capital assets, being depreciated 154,377,511 2,171,742 156,549,253
Less accumulated depreciation:
Buildings and improvements (19,698,128) (797,007) - (20,495,135)
Vehicles and equipment (15,606,898) (1,372,379) - (16,979,277)
Infrastructure (46,307,791) (2,485,883) - (48,793,674)
Total accumulated depreciation (81,612,817) (4,655,269) (86,268,086
Total capital assets, being depreciated, net 72,764,694 (2,483,527) 70,281,167
Governmental activities
capital assets, net $ 102,514,060 S (1,269,404) $ (1,277,551) $ 99,967,105
Depreciation expenses were charged to functions/programs of the governmental activities for the fiscal year
ended September 30, 2020 as follows:
General government
Public safety
Public works
Community and cultural
Internal service funds
Total depreciation expense
$ 63,378
224,765
2,670,362
822,768
873,996
$ 4,655,269
73
Page 190 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 6 — Capital Assets (Continued)
B. Business -Type Activities
A summary of changes in capital assets for the business -type activities for the year ended
September 30, 2020 was as follows:
Business-Tvpe Activities
Balance Balance
September 30, 2019 Additions Deletions September 30, 2020
Capital assets, not being depreciated:
Land $ 5,999,980 $ - $ - $ 5,999,980
Construction in progress 610,038 394,331 (707,433) 296,936
Total capital assets, not being depreciated 6,610,018 394,331 (707,433) 6296,916
Capital assets, being depreciated:
Buildings and improvements
Improvements other than buildings
Vehicles and equipment
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation:
Buildings and improvements
Improvements other than buildings
Vehicles and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Business -type activities
capital assets, net
8,755,787
-
-
8,755,787
418,161
-
-
418,161
1,095,337
-
-
1,095,337
63,494,190
691,861
(13,221)
64,172,830
73,763,475
691,861
(13,221)
74,442,115
(6,300,725)
(133,719)
-
(6,434,444)
(152,972)
(20,908)
-
(173,880)
(1,027,513)
(52,326)
(1,079,839)
(41,565,547)
(830,559)
13,221
(42,382,885)
(49,046,757)
(1,037,512)
13,221
(50,071,048)
716,718 (345,651) - 24,371,067
$ 31,326,736 $ 48,680 $ (707,433) $ 30,667,983
Construction in progress deletions exceed additions to total capital assets, being depreciated, by $15,572 due
to a project that was capitalized in the prior year but was determined to not be capitalizable in the current
year.
Depreciation expenses for business -type activities for the fiscal year ended September 30, 2020 was charged
as follows:
Water
Sewer
Golf course
Total depreciation expense
$ 187,977
644,643
204,892
$ 1,037,512
74
Page 191 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 6 — Capital Assets (Continued)
C. Discretely Presented Component Unit
A summary of changes in capital assets for the discretely presented component unit for the year ended
December 31, 2019 was as follows:
Discretely Presented Component Unit
Balance
Balance
January 1, 2019
Additions Deletions
December 31, 2019
Capital assets, being depreciated:
Buildings and improvements
$ 1,046,041
$ - $ -
$ 1,046,041
Furniture and equipment
298,542
- -
298,542
Total capital assets, being depreciated
1,344,583
- -
1,344,583
Less accumulated depreciation:
Buildings and improvements
(576,069)
(35,124) -
(611,193)
Furniture and equipment
(276,491)
(5,885) -
(282,376)
Total accumulated depreciation
(852,560)
(41,009) -
(893,569)
Total capital assets, being depreciated, net
492,023
(41,009) -
451,014
Total capital assets, net $ 492,023 $ (41,009) $ - $ 451,014
Depreciation expenses for the discretely presented component unit for the fiscal year ended December 31,
2019 was $ 41,009.
Note 7 — Long -Term Liabilities
A. Governmental Activities
A summary of changes in long-term liabilities for governmental activities for the year ended September 30,
2020 was as follows:
Balance
Balance
Due within
Due in more
October 1, 2019 Additions Deletions
September 30, 2020
One Year
than One Year
Direct borrowings:
Capital Lease Obligation:
2003 Parking Structure Lease $ 2,079,189 $
$ (54,286)
$ 2,024,903
$ 58,095
$ 1,966,808
Facility Lease Obligation:
2005 Douglas Street Gap Closure Project 6,504,059
(325,995)
6,178,064
335,351
5,842,713
Other long-term debt:
Claims payable 11,300,000
4,437,986 (2,811,986)
12,926,000
2,502,181
10,423,819
Compensated absences 4,771,678
364,889 (31,656)
5,104,911
4,027,411
1,077,500
Total $ 24,654,926 $
4, 002,875 $ (3,223,923)
$ 26,233,878
$ 6, 223,038
$ 19,310840
Typically, the General Fund has been used to
liquidate the liability
for compensated absences, claims
payable, and the capital lease obligation. The Nonmajor Facility Lease
Debt Service Fund has been used to
liquidate the facility lease obligation.
VAI
Page 192 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 7 — Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
Capital Lease Obligation
2003 Parking Structure Lease
On June 18, 2002, the City entered into a capital lease agreement with 612 Twin Holdings, LLC to acquire a
two story, three level parking structure and certain retail space. The terms of the lease include an initial
payment of $1,100,000, monthly lease payments of $16,167 with an imputed interest rate of 6.80% for 408
months, and a purchase option for $200,000 due on January 1, 2039. The capital asset acquired had a
present value of $3,688,222 ($1,659,700 and $2,028,522 for the building structure and the land,
respectively) with an annual depreciation of $33,194 and accumulated depreciation totaling $555,907 as of
September 30, 2020.
The amount outstanding at September 30, 2020 totaled $2,024,903. The annual debt service requirements on
the capital lease is as follows:
Fiscal Year
2021
2022
2023
2024
2025
2026-2030
2031-2035
2036-2039
Facility Lease Obligation
Principal
$ 58,095
62,171
66,533
71,201
76,196
469,078
Interest Total
135,905
131,829
127,467
122,799
117,804
500,922
544,864 279,636
676,765 91,071
194,000
194,000
194,000
194,000
194,000
970,000
824,500
767,836
$ 2,024,903 $ 1,507,433 $ 3,532,336
2005 Douglas Street Gap Closure Project
On September 1, 2005, the City entered into a facility lease agreement with the California Infrastructure and
Economic Development Bank ("CIEDB") whereby CIEDB issued bonds in the amount of $10,000,000 to
finance the Douglas Street Gap Closure Project. The City will make rental lease payments over a 30-year
period starting on February 1, 2006, at an interest rate of 2.87% per annum, for annual amounts ranging
from $514,156 to $533,124. Interest payments on the lease obligation are due on February 1 and August 1 of
each year. Base rental payment billing statements will be mailed to the City reflecting the actual amount
owed prior to each base rental payment due date.
76
Page 193 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 7 — Long -Term Liabilities (Continued)
A. Governmental Activities (Continued)
The amount outstanding at September 30, 2020 totaled $6,178,064. The annual debt service requirements on
the capital lease is as follows:
Fiscal Year
2021
2022
2023
2024
2025
2026-2030
2031-2035
B. Business -Type Activities
Principal
Interest
Total
$ 335,351
$ 177,310 $
512,661
344,975
167,686
512,661
354,876
157,785
512,661
365,061
147,600
512,661
375,538
137,123
512,661
2,045,683
517,624
2,563,307
2,356,580
206,728
2,563,308
$ 6,178,064
$ 1,511,856 $
7,689,920
The following is a summary of changes in long-term liabilities for business -type activities for the year ended
September 30, 2020:
Balance Balance Due within Due in more
October 1, 2019 Additions Deletions September 30, 2020 One Year than One Year
Compensated absences $ 204,966 $ 33,629 $ (21,889) $ 216,706 $ 202,833 $ 13,873
Compensated absences are typically liquidated by the Water and Sewer Enterprise Funds.
V&A
Page 194 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans
A. Summary
The following is the summary of net pension liability and related deferred outflows of resources and
deferred inflows of resources at September 30, 2020 and pension expense for the year then ended.
Deferred outflows of resources:
Miscellaneous
Safety
PARS
Total deferred outflows of resources
Aggregate net pension liabilities:
Miscellaneous
Safety
PARS
Total aggregate net pension liabilities
Deferred inflows of resources:
Miscellaneous
Safety
PARS
Total deferred inflows of resources
Pension Expense:
Miscellaneous
Safety
PARS
Total pension expense
Governmental
Business -Type
Activities
Activities
Total
$
862,975
$
116,615
$
979,590
12,685,161
-
12,685,161
206,701
-
206,701
$
13,754,837
$
116,615
$
13,871,452
$
30,176,801
$
4,077,830
$
34,254,631
118,102,353
-
118,102,353
1,074,507
-
1,074,507
$
149,353,661
$
4,077,830
$
153,431,491
$
114,595
$
15,485
$
130,080
3,046,383
-
3,046,383
30,931
-
30,931
$
3,191,909
$
15,485
$
3,207,394
$
2,904,057
$
1,144,028
$
4,048,085
22,464,644
-
22,464,644
154,404
-
154,404
$
25,523,105
$
1,144,028
$
26,667,133
The City elected to join PARS as a means to provide additional funding for the Ca1PERS Miscellaneous and
Safety defined benefit pension plans. The General Fund contains the Section 115 Trust balance restricted
cash balance of $4,482,363 as of September 30, 2020.
78
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CalPERS')
General Information about the Pension Plan
Plan Descriptions
The City contribution to the California Public Employees Retirement System ("Ca1PERS"), an agent
multiple -employer defined benefit pension plan for miscellaneous employees and a cost -sharing multiple -
employer defined benefit plan for safety employees. Ca1PERS acts as a common investment and
administrative agent for participating public entities within the State of California. Benefit provisions and all
other requirements are established by state statute and City ordinance. A full description of the pension plan
regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting
purposes), and membership information are listed in the June 30, 2019 Annual Actuarial Valuation Report.
This report and Ca1PERS' audited financial statements are publicly available reports that can be obtained at
Ca1PERS' website under Forms and Publications.
Benefits Provided
Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits
to plan members and beneficiaries. A classic Ca1PERS member or PEPRA Safety member becomes eligible
for service retirement upon attainment of age 50 with at least 5 years of credited service. During the year
ended June 30, 2013, the California's Public Employees' Pension Reform Act ("PEPRA") went into effect.
Employees hired after January 1, 2013 who are new to the Ca1PERS system are part of the PEPRA plan.
PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at
least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the
benefit factor, years of service, and final compensation. The final compensation is the monthly average of
the member's highest 36 or 12 consecutive months' full-time equivalent monthly pay. Retirement benefits
for classic miscellaneous employees are calculated as 2% of average final 12 months compensation.
Retirement benefit for PEPRA miscellaneous employees are calculated as 2% of the average final 36
months compensation. Retirement benefits for classic safety employees are calculated as 3% of the average
final 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2.7% of
average final 36 months.
79
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City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CalPERS') (Continued)
General Information about the Pension Plan
Benefits Provided
Following are the benefit provision for each plan:
Miscellaneous
Miscellaneous
PEPRA
Miscellaneous
Second Tier
Miscellaneous
Rate Plan
Rate Plan
Rate Plan
Hire date
Prior to
On or after
Prior to
January 1, 2013
January 1, 2013
January 1, 2013
Classic Member
New Member
Benefit formula
2% @ 55
2% @ 60
2% @ 62
Benefit vesting schedule
5 years service
5 years service
5 years service
Benefit payments
monthly for life
monthly for life
monthly for life
Retirement age
minimum 50 yrs
minimum 50 yrs
minimum 52 yrs
Safety - Police/Fire
Safety
PEPRA
Safety
Second Tier
Safety
Rate Plan
Rate Plan
Rate Plan
Hire date
Between
October 6, 2012 to
On or after
Prior to
December 31, 2012
January 1, 2013
October 6, 2012
Classic Member
New Member
Benefit formula
Police - 3% @ 50
Police - 3% @ 55
2.7% @ 57
Fire - 3% @ 55
Benefit vesting schedule
5 years service
5 years service
5 years service
Benefit payments
monthly for life
monthly for life
monthly for life
Retirement age
minimum 50 yrs
minimum 50 yrs
minimum 50 yrs
Participants are eligible for non -industrial disability retirement if the participant becomes disabled and has at
least 5 years of credited service. There is no special age requirement. The standard non -industrial disability
retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service.
Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial
disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly
allowance equal to 50 percent of final compensation.
80
Page 197 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS') (Continued)
General Information about the Pension Plan (Continued)
Benefits Provided (Continued
An employee's beneficiary may receive the basic death benefit if the employee becomes deceased while
actively employed. The employee must be actively employed with the City to be eligible for this benefit. An
employee's survivor who is eligible for any other pre -retirement death benefit may choose to receive that
death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the
employee's accumulated contributions, where interest is currently credited at 7.5% per year, plus a lump
sum in the amount of one month's salary for each completed year of current service, up to a maximum of six
months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly
full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time
lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.
Benefit terms provide for annual cost -of -living adjustments to each employee's retirement allowance.
Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be
annually adjusted on a compound basis by 2%.
Emnlovee Covered by Benefit Terms
At June 30, 2020, the measurement date, the following employees were covered by the benefit terms under
the miscellaneous plans:
Miscellaneous
Plans
Active employees 176
Transferred and terminated employees 312
Retired Employees and Beneficiaries 359
Total 847
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer
contribution rates for all public employers be 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 Ca1PERS' annual actuarial valuation process. The actuarially determined rate is the estimated
amount necessary to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. The City is required to contribute the difference between
the actuarially determined rate and the contribution rate of employees. City contribution rates may change if
plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are
identified in the pension plan terms as plan member contribution requirements are classified as plan member
contributions.
81
Page 198 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS') (Continued)
General Information about the Pension Plan (Continued)
Contributions (Continued)
The required contribution rates are as follows:
Measurement Period Ended June 30, 2019
Miscellaneous Plans
Classic
PEPRA
Employer Contribution Rate
9.395%
9.395%
Employer Payment of Unfunded Liability
2,418,040
-
Employee Contribution Rate
7.000%
6.250%
Measurement Period Ended June 30, 2019
Safety Plans
Police - Tier 1
Police -Tier 2
Police PEPRA
Fire - Tier 1
Employer Contribution Rate 25.829%
23.558%
13.884%
21.757%
Employer Payment of Unfunded Liability 3,862,287
5,366
2,482
3,491,080
Employee Contribution Rate 9.000%
9.000%
13.75%
9.000%
Net Pension Liability
The City's net pension liability for each Plan is measured as the total pension liability, less the pension
plans' fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020,
using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard
update procedures.
Actuarial Methods and Assumption Used to Determine Total Pension Liability
A summary of principal assumptions and methods used to determine the net pension liability are as follows:
Actuarial Cost Method
Entry Age Normal
Actuarial Assumptions:
Discount Rate
7.15%
Inflation
2.50%
Salary Increases
Varies by Entry Age and Service
Investment Rate of Return
7.25% includes inflation
Mortality Rate Table
The probabilities of mortality are based on the 2017 CalPERS
Experience Study for the period from 1997 to 2015.
Pre -retirement and Post -retirement mortality rates include 20 years
of projected mortality improvement using Scale BB published by the
Society of Actuaries.
Retirement Age
The probabilities of Retirement are based on the 2017 CalPERS
Experience Study for the period from 1997 to 2015.
Post Retirement Benefit Increase
Contract COLA up to 2.0% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.50% thereafter.
82
Page 199 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS') (Continued)
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, Ca1PERS took into account both short-term and long-term market return expectations as well as
the expected pension fund cash flows. Using historical returns of all of the funds' asset classes, expected
compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (I I+
years) using a building-block approach. Using the expected nominal returns for both short-term and long-
term, the present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the rounded single equivalent expected return that arrived at the same present value of benefits
for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return
was then set equal to the single equivalent rate calculated above and adjusted to account for assumed
administrative expenses. The expected real rates of return by asset class are as followed:
Asset Class 1
Global Equity
Fixed Income
Inflation Assets
Private Equity
Real Assets
Liquidity
New Strategic Real Return Real Return
Allocation Years 1 -10 2 Years 11+ 2
50.00% 4.80% 5.98%
28.00% 1.00% 2.62%
0.00% 0.77% 1.81%
8.00% 6.30% 7.23%
13.00% 3.75% 4.92%
1.00% 0.00% -0.92%
100.00%
1 In the Systems CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in
Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2 An expected inflation of 2.0% and 2.92% used for years 1-10 and years 11+, respectively.
Discount Rate
The discount rate used to measure the total pension liability was 7.15%. 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 in this disclosure.
83
Page 200 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CalPERS') (Continued)
Chanees in the Net Pension Liability
The following table shows the changes in net pension liability for the City's Miscellaneous Plan recognized
over the measurement period.
Miscellaneous Plan
Balance at June 30, 2019 (Valuation Date)
Changes recognized for the measurement period:
Service Cost
Interest on the total pension liability
Differences between expected and actual experience
Plan to plan resource movement
Contributions from the employer
Contributions from employee
Net investment income
Benefit payments, including refunds of employee
contributions
Administrative expense
Other miscellaneous (income)/expense
Net changes during July 1, 2019 to June 30, 2020
Balance at June 30, 2020 (Measurement Date)
Proportionate Share of Net Pension Liability
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Net Pension
Liability
Position
Liability/(Asset)
(a)
(b)
(c) _ (a) - (b)
$ 120,807,009
$ 88,056,385
$ 32,750,624
2,088,245
-
2,088,245
8,447,044
-
8,447,044
(221,184)
-
(221,184)
-
3,966
(3,966)
-
3,584,857
(3,584,857)
-
946,546
(946,546)
-
4,398,867
(4,398,867)
(6,978,924)
(6,978,924)
-
-
(124,138)
124,138
3,33 5,181
1,831,174
1,504,007
$ 124,142,190 $
89,887,559 $
34,254,631
The following table shows the City's safety plan's proportionate share of the risk pool collective net pension
liability over the measure period.
Safety Plan
Balance at June 30, 2020 (Measurement Date)
Proportionate
Share of Net
Pension Liability
118,102,353
84
Page 201 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS') (Continued)
Changes in the Net Pension Liability (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued)
The following is the approach established by the plan actuary to allocate the net pension liability and
pension expense to the individual employers within the risk pool.
(1) In determining a cost -sharing plan's proportionate share, total amounts of liabilities and assets are
first calculated for the risk pool as a whole on the valuation date (June 30, 2019). The risk pool's
fiduciary net position ("FNP") subtracted from its total pension liability ("TPL") determines the net
pension liability ("NPL") at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the
measurement date (June 30, 2020). Risk pool FNP at the measurement date is then subtracted from
this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in
this step and any later reference thereto, the risk pool's FNP at the measurement date denotes the
aggregate risk pool's FNP at June 30, 2020 less the sum of all additional side fund (or unfunded
liability) contributions made by all employers during the measurement period (2019-2020).
(3) The individual plan's TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated
based on the rate plan's share of the actuarial accrued liability. FNP is allocated based on the rate
plan's share of market value assets.
(4) Two ratios are created by dividing the plan's individual TPL and FNP as of the valuation date from
(3) by the amounts in step (1), the risk pool's total TPL and FNP, respectively.
(5) The plan's TPL as of the Measurement Date is equal to the risk pool TPL generated in
(2) multiplied by the TPL ratio generated in (4). The plan's FNP as of the Measurement Date is
equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional
side fund (or unfunded liability) contributions made by the employer on behalf of the plan during
the measurement period.
(6) The plan's NPL at the Measurement Date is the difference between the TPL and FNP calculated in
(5).
Deferred outflows of resources, deferred inflows of resources, and pension expense are allocated based on
the City's NPL as a percentage of the total plan's NPL.
The City's proportionate share of the net pension liability was as follows:
June 30, 2019
June 30, 2020
Safety Plan
1.7839%
1.7727%
Change - Increase (Decrease) 0.0112%
85
Page 202 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS') (Continued)
Changes in the Net Pension Liability (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the plans as of the measurement date, calculated using the
discount rate of 7.15%, as well as what the net pension liability would be if it were calculated using a
discount rate that is 1 percentage -point lower (6.15%) or 1 percentage -point higher (8.15%) than the current
rate:
Plan's Net Pension Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15 %) Rate (7.15 %) (8.15 %)
Miscellaneous Plan $ 49,708,803 $ 34,254,631 $ 21,450,265
Safety Plan $ 159,830,180 $ 118,102,353 $ 83,860,722
Pension Plan Fiduciary Net Position
Detailed information about the plan's fiduciary net position is available in the separately issued Ca1PERS
financial report.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended September 30, 2020, the City recognized pension expense in the amounts of $4,048,085
and $22,464,644 for the miscellaneous plans and safety plans, respectively.
As of measurement date of June 30, 2020, the City has deferred outflows and deferred inflows of resources
related to pensions as follows:
Miscellaneous Plan
Pension contribution made after measurement date
Difference between expected and actual experience
Changes of assumptions
Net difference between projected and actual earning on
pension plan investments
Total
Deferred outflows Deferred inflows
of Resources of Resources
$ 363,370 $
616,220
(130,080)
$ 979,590 $ (130,080)
86
Page 203 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS') (Continued)
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
(Continued)
Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Pension contribution made after measurement date $ 714,613 $ -
Difference between expected and actual experience 9,158,238 -
Changes of assumptions
Difference between projected and actual earnings on
pension plan investments
Change in employer's proportion and differences
between the employer's contributions and the
employer's proportionate share of contributions
Total
(393,401)
2,566,861
245,449 (2,652,982)
$ 12,685,161 $ (3,046,383)
The amounts above are net of outflows and inflows recognized in the 2019-2020 measurement period
expense.
The expected average remaining service lifetime (" EARSL") is calculated by dividing the total future
service years by the total number of plan participants (active, inactive, and retired). The EARSL for the
miscellaneous plan and the safety risk pool for the 2019-2020 measurement period is 2.3 and 3.8 years,
respectively, which was obtained by dividing the total service years of 1,920 and 548,581 (the sum of
remaining service lifetimes of the active employees) by 847 and 145,663 (the total number of participants:
active, inactive, and retired), respectively.
$363,370 and $714,613 reported as deferred outflows of resources related to pensions for miscellaneous
plan and safety plan, respectively, resulting from the City's contributions subsequent to the measurement
date will be recognized as a reduction of the net pension liability in the year ending September 30, 2021.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in the future pension expense as follows:
Measurement Period
Ended June 30
2021
2022
2023
2024
2025
Thereafter
Deferred Outflows/ Deferred Outflows/
(Inflows) of Resources (Inflows) of Resources
Miscellaneous Plan Safety Plan
$ (499,109) $ 1,028,864
181,017 3,783,776
445,771 2,825,384
358,461 1,286,141
$ 486,140 $ 8,924,165
87
Page 204 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
B. California Public Employees' Retirement System ("CaIPERS") (Continued)
Payable to the Pension Plan
At September 30, 2020, the City had no outstanding amount of contributions to the pension plan required for
the year ended September 30, 2020.
C. Public Agency Retirement System ("PARS')
General Information about the Pension Plan
Plan Description
On September 1, 2008, the City approved the establishment of a Retirement Enhancement Plan (the "Plan")
for eligible employees of the Supervisory and Professional Employees' Association of the City, effective
October 1, 2008. Effective November 3, 2015 ("Freeze Date"), both benefits service and final pay are
frozen. The Plan provides a supplemental retirement benefit in addition to the employees' current CaIPERS
retirement plan. The Plan is an agent multiple -employer defined benefit plan. The Plan will provide for
0.5% at age 55 for employees who retire from the City under Ca1PERS on or after September 30, 2008 and
have 15 years of continuous City service.
The City's Finance Director is the Plan Administrator and is responsible for taking the necessary actions to
implement and administer the Plan in compliance with the Plan Document and applicable legal
requirements. Public Agency Retirement Services ("PARS") is the Trust Administrator and is responsible
for Plan accounting, coordinating benefit distributions with the Trustee, and communicating Plan provisions.
Union Bank of California is the Trustee and is responsible for receiving and investing Plan contributions,
safeguarding Plan assets, and distributing benefits to eligible Plan participants or beneficiaries at the
direction of the Plan Administrator and pursuant to the Plan Document.
The amounts of the benefit payments are calculated by the Trust Administrator and all accounting and
reporting functions are performed by the Trust Administrator. Plan assets are considered to be held by the
third -party administrator on behalf of the employees and are therefore excluded from the accompanying
financial statements. The City's responsibilities for this Plan are not sufficient administrative involvement to
constitute a "holding of assets" by the City in a pension trust fund. The year ended September 30, 2009, was
the first year of the Plan.
The Plan issues a publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by contacting the Trust Administrator at the
following address or telephone number:
Public Agency Retirement Services,
PARS Trust Administrator
PO Box 12919
Newport Beach, CA 92658-2919
(800) 540-6369
88
Page 205 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
C. Public Agency Retirement System ("PARS') (Continued)
General Information about the Pension Plan (Continued)
Benefits Provided
Below is the benefits summary provided by the Plan.
Eligibility Supervisory and Professional employees
Full-time employees in the group between August 5, 2008
and October 1, 2012
Before Plan Freeze:
• Retire from City under Ca1PERS on or after September 30, 2008
• Age 55 with 15 years continuous City service
After Plan Freeze:
• Retire from Ca1PERS
• Age 55
• Does not need to retire directly from the City
Retirement Benefit Target of 2.5% @ 55 less Ca1PERS 2%@55
City service from hire date through Freeze Date
Final Pay Highest consecutive 12-month pay as of Freeze Date
PERSable pay including EPMC
COLA 2% after retirement
Normal Form of Benefit Single life annuity
Termination/Disability/ 100% vesting as of Freeze Date
Pre -Retirement Death Benefit Greater of the following:
• Refund of employee contributions with 4.25% interest
• Deferred retirement benefit
Employees Covered by Benefit Terms
At September 30, 2019, the measurement date, the following employees were covered by the benefit terms:
Active employees 9
Terminated employees 7
Retired Employees and Beneficiaries 11
Total 27
89
Page 206 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
C. Public Agency Retirement System ("PARS') (Continued)
General Information about the Pension Plan (Continued)
Contributions and Funding PolicX
The City's funding policy is to make the contribution as determined by the Plan's actuary. There was no
employee contribution after Freeze Date. Members may elect to receive lump sum refund of employee
contributions with 4.25% interest in lieu of annuity upon termination / retirement / disability / death.
Employer contributions are determined by actuarial study performed at least every two years. The Plan's
annual pension contribution for the measurement date ended September 30, 2019, was based on an actuarial
valuation as of June 30, 2016. For the measurement date ended September 30, 2019, the City made
contributions of $158,000 to the Plan, which was a contribution to the PARS trust.
Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total 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 September 30, 2019, using an
actuarial valuation as of June 30, 2018, rolled forward to September 30, 2019 using standard update
procedures. A summary of principal assumptions and methods used to determine the net pension liability is
as follows:
Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:
Discount Rate 5.75%
Investment Return 5.75%
Inflation 2.75%
Mortality, Disability, and Termination CalPERS 1997-2015 experience study
Projected fully generational with Scale MP-2018
Service Retirement CalPERS 1997-2015 Experience Study. Benefit: Modified 2.5% @ 55
Adding 1/3 of sum of the rates for ages 50-54 to the rate for age 55
Post Retirement Cost of Living Adjustment 2.00%
r•1
Page 207 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
C. Public Agency Retirement System ("PARS') (Continued)
Net Pension Liability (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 5.75%. The projection of cash flows
utilized to determine the discount rate assumed that contributions from the City would be made at the
actuarially determined contribution amount. 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.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without
reduction for pension plan administrative expense. The 5.75% investment return assumption used in this
accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 50 basis
points. An investment return excluding administrative expenses would have been 6.25%. Using this lower
discount rate has resulted in a slightly higher total pension liability and net pension liability.
The table below reflects target allocation and expected real rate of return by asset classes for the moderate
portfolio selected by the City:
Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 58.00% 4.82%
Fixed Income 35.00% 1.47%
REITs 2.00% 3.76%
Cash 5.00% 0.06%
l 00.00%
Assumed Long -Term Rate of Inflation 2.75%
Expected Long -Term Net Rate of Return, Rounded 5.75%
The City elected to use 5.75% investment return assumption.
Confidence Level
Net Return after Expenses
Plan Non -Investment Expense 1
Net Return
50% 55%
6.25% 6.00%
-0.50% -0.50%
5.75% 5.50%
Based on expected long term non -investment expenses
F
Page 208 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
C. Public Agency Retirement System ("PARS") (Continued)
Net Pension Liability (Continued)
Changes in Assumptions
The discount rate and long-term expected rate of return on assets utilized in the actuarial valuation as of
June 30, 2016 and 2018 was 5.50% and 5.75%, respectively, which was updated based on the asset
allocation change. The actuarial valuation inflation rate as of June 30, 2016 and 2018 was 3.00% and 2.75%,
respectively. Also, the mortality, retirement, disability, and termination assumptions in the June 30, 2018
actuarial valuation were updated from the Ca1PERS 1997-2011 Experience Study used in the June 30, 2016
actuarial valuation to the Ca1PERS 1997-2015 Experience Study. In addition, the mortality improvement
scale utilized in the June 30, 2018 actuarial valuation was updated from the Scale MP-2014 used in the June
30, 2016 actuarial valuation to the Scale MP-2018.
Subsequent Events
There were no subsequent events that would materially affect the results in this disclosure.
Changes in Net Pension Liability
The table on the following page shows the changes in net pension liability recognized over the measurement
period:
Increase (Decrease)
Total Pension
Plan Fiduciary Net
Net Pension
Liability
Position
Liability/(Asset)
(a)
(b)
(c) _ (a) - (b)
Balance at September 30, 2018
$ 2241,998
$ 1,087,687
$ 1,154,311
Changes recognized for the measurement period:
Interest on the total pension liability
126,122
-
126,122
Differences between expected and actual experience
-
-
-
Changes of assumptions
-
-
-
Contributions from the employer
-
158,000
(158,000)
Net investment income
-
53,443
(53,443)
Benefit payments, including refunds of employee
contributions
(97,156)
(97,156)
-
Administrative expense
-
(5,517)
5,517
Net changes during October 1, 2018 to September 30, 2019
28,966
108,770
(79,804)
Balance at September 30, 2019 (Measurement Date)
$ 2,270 964
$ 1,196,457
$ 1,074,507
r•►
Page 209 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
C. Public Agency Retirement System ("PARS') (Continued)
Chan;ses in Net Pension Liability (Continued)
Sensitivity of Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the measurement date, calculated using the
discount rate of 5.75%, as well as what the net pension liability would be if it were calculated using a
discount rate that is 1 percentage -point lower (4.75%) or 1 percentage- point higher (6.75%) than the current
rate:
Plan's Net Pension Liability
Discount Rate - 1%
(4.75%)
$ 1,364,158
Pension Plan Fiduciary Net Position
Current Discount
Rate (5.75%)
$ 1,074,507
Discount Rate + 1%
(6.75%)
$ 835,725
Detailed information about the plan's fiduciary net position is available upon request.
Pension Expense, Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the measurement period ended September 30, 2019, the City incurred a pension expense of $154,404
and reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Pension contribution made after measurement date
Difference between expected and actual experience
Changes of assumptions
Net difference between projected and actual earning on
pension plan investments
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 158,000 $ -
48,701 -
- (16,114)
- (14,817)
Total $ 206,701 $ (30,931)
The $158,000 reported as deferred outflows of resources related to pension resulting from the City's
contribution subsequent to the measurement date during the year ended September 30, 2020 will be
recognized as a reduction of the net pension liability in the year ending September 30, 2021.
W
Page 210 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 8 — Retirement Plans (Continued)
C. Public Agency Retirement System ("PARS") (Continued)
Pension Expense, Deferred Outflows and Deferred Inflows of Resources Related to Pensions
(Continued)
Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be
recognized in future pension expense as follows:
Measurement Period
Ended September 30
2020
2021
2022
2023
2024
Thereafter
Payable to the Pension Plan
Deferred Outflows/
(Inflows) of Resources
$ 19,997
(6,590)
1,410
2,953
$ 17,770
At September 30, 2020, the City had no outstanding amount of contributions to the pension plan required for
the year ended September 30, 2020.
Note 9 — Other Post -Employment Health Benefits
At September 30, 2020, net OPEB liability and related deferred outflows of resources and deferred inflows of
resources are as follows:
Governmental
Business -Type
Activities
Activities
Total
Deferred outflows of resources
$
1,522,275
$ 78,785
$
1,601,060
Net other postemployment benefit liability
$
27,692,790
$ 1,433,225
$
29,126,015
Deferred inflows of Resources
$
5,888,815
$ 304,773
$
6,193,588
OPEB expense
$
2,458,080
$ (44,495)
$
2,413,585
10-
Page 211 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 9 — Other Post -Employment Health Benefits (Continued)
General Information About the OPEB Plan
Plan Description
The City provides postretirement medical benefits to employees under an agent multiple -employer plan who
retire directly from the City under Ca1PERS, with age and service requirements that vary by bargaining unit. For
eligible retirees, the City contributes a portion of the premium for the medical plan selected by the retiree.
Benefit provisions for Ca1PERS are established and amended through negotiations between the city and the
respective unions. The plan issues a publicly available financial report that includes financial statements and
required supplementary information for that plan. Those reports may be obtained by writing or calling the plans
at the following address or telephone number:
Ca1PERS Member Services Division
P.O. Box 942704 Sacramento, CA 94229-2704
1-888-225-7377
The City has entered into an agreement with California Employers' Retiree Benefit Trust (CERBT) to prefund
the City's net OPEB liability.
Fundiw Policy and Contributions
The contribution requirements of plan members and the City are established and may be amended by City
Council. The annual contribution is based on the actuarially determined contribution. For the measurement
period ended June 30, 2020, the City's contributions were $548,000 to the Ca1PERS CERBT Trust, $3,374,34 in
premium payments, administrative expense of $9,028 and the estimated implicit subsidy was $494,250,
resulting in total payments of $4,425,712
Employees Covered
At June 30, 2020, the measurement date, membership in the Plan consisted of the following:
Inactive plan member currently receiving benefits
Inactive plan members entitled to but not yet
receiving benefits
Active plan members
Total
Net OPEB Liability
336
24
252
612
The City's total OPEB liability was measured as of June 30, 2020, and was determined by an actuarial valuation
as of June 30, 2019, rolled forward to June 30, 2020 using standard update procedures. A summary of the
principal assumptions and methods used to determine the total OPEB liability is shown below.
M
Page 212 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 9 — Other Post -Employment Health Benefits (Continued)
General Information About the OPEB Plan (Continued)
Net OPEB Liability (Continued)
Actuarial Methods and Assumptions
The total OPEB liability was determined using the following actuarial assumptions, applied to all periods
included in the measurement, unless otherwise specified:
Actuarial Cost method Entry Age Method
Actuarial Assumption:
Discount Rate 6.75% - Pre -funded through Ca1PERS CERBT
Asset Strategy #1
Inflation 2.75%
Salary Increases 3.00% per year
Mortality Improvement Post -retirement mortality projected fully generational with
Scale MP-2019
Medical Trend Non -Medicare: 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076.
Medicare: 6.3% for 2021, decreasing to an ultimate rate of 4.0% to 2076.
The actuarial assumptions used in the June 30, 2019 valuation were based on a standard set of assumptions the
actuary has used for similar valuations, modified as appropriate for the City.
The long-term expected rate of return 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. The asset class percentages are taken from the current
composition of CERBT, and the expected yields are taken form a recent Ca1PERS publication for the pension
fund:
Long -Term
Compound
Asset Class Allocation
Return
CERBT:
Global Equity
59.00%
4.82%
Fixed Income
25.00%
1.47%
TIPS
5.00%
1.29%
REITs
8.00%
3.76%
Commodities
3.00%
84.00%
Total
100.00%
Assumed Long -Term Rate of Inflation
2.75%
Expected Long -Term Net Rate of Return, Rounded
6.75%
r`•
Page 213 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 9 — Other Post -Employment Health Benefits (Continued)
Net OPEB Liability (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability is 6.75%. This is the expected long-term rate of
return on City assets using investment strategy 1 within the California Employers' Retiree Benefit Trust
(CERBT). The projection of cash flows used to determine the discount rate assumed that the City contribution
will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the
OPEB plan's fiduciary net position is projected to cover all future OPEB payments. Therefore, the discount rate
was set equal to the long-term expected rate of return.
Changes in Net OPEB Liability
Balance at September 30, 2019 (Valuation Date June 30, 2019)
Changes recognized for the measurement period:
Service Cost
Interest on the net OPEB liability
Differences between expected and actual experience
Changes of assumptions
Contributions from the employer
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Net changes during October 1, 2019 to September 30, 2020
Balance at September 30, 2020(Measurement Date June 30, 2020)
Change in Assumptions
Increase (Decrease)
Total Pension Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
$ 61,302,549 $ 24,641,464 $ 36,661,085
1,325,398
-
1,325,398
4,096,818
-
4,096,818
(6,345,201)
-
(6,345,201)
(1,323,051)
-
(1,323,051)
-
4,425,712
(4,425,712)
-
884,584
(884,584)
(3,868,684)
(3,868,684)
-
-
(21,262)
21,262
(6,114,720) 1,420,350 (7,535,070)
$ 55,187,829 $ 26,061,814 $ 29,126,015
For measurement date June 30, 2019, to June 30, 2020, the mortality scale was updated to Scale MP-2019 from
MP-2017 and the healthcare trend changed from 7.50% non -medicare and 6.50% medicare to 7.25%
non -medicare and 6.30% medicare.
Change ofBenefit Terms
There were no changes of benefit terms.
�r7
Page 214 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 9 — Other Post -Employment Health Benefits (Continued)
Chances in Net OPEB Liability (Continued)
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were
calculated using a discount rate that is 1-percentage point lower (5.75 percent) or 1-percentage-point higher
(7.75 percent) than the current discount rate:
Plan's Net OPEB Liability (Assets)
Discount Rate -1% Current Discount Discount Rate +1%
(5.75%) Rate (6.75%) (7.75%)
$ 35,694,473 $ 29,126,015 $ 23,671,045
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were
calculated using healthcare cost trend rates that are 1-percentage-point lower (6.25% and 5.30% for 2021 for
Non -Medicare and Medicare, respectively, decreasing to an ultimate rate of 4.0% in 2076) or 1-percentage-point
higher (8.25% and 7.3% for 2021 for Non -Medicare and Medicare, respectively, decreasing to an ultimate rate
of 4.0% in 2076) than the current healthcare cost trend rates:
Plan's Net OPEB Liability (Assets)
Healthcare Cost Healthcare Cost
Trend Rate -1 % Current Rate Trend Rate +1 %
$ 26,184,542 $ 29,126,015 $ 31,990,395
E
Page 215 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 9 — Other Post -Employment Health Benefits (Continued)
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2020, the City' recognized OPEB expense of $2,413,585. At September 30,
2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from
the following sources:
Deferred outflows Deferred inflows
of Resources of Resources
Contribution made after measurement date $ 986,340 $ -
Difference between expected and actual experience - (5,124,970)
Change of assumptions - (1,068,618)
Net difference between projected and actual earning on
pension plan investments 614,720 -
Total $ 1,601,060 $ (6,193,588)
An amount of $986,340, which is reported as deferred outflows of resources related to contributions subsequent
to the measurement date, will be recognized as reduction of the net OPEB liability in the year ended
September 30, 2021. The amounts reported as deferred inflows of resources related to OPEB will be recognized
as future OPEB expense as follows:
Deferred Outflows/
Measurement Period (Inflows) of Resources
Ended June 30 OPEB Plan
2021 $ (1,339,634)
2022 (1,339,633)
2023 (1,291,140)
2024 (1,313,529)
2025 (294,932)
$ (5,578,868)
Payable to the OPEB Plan
At September 30, 2020, the City had no outstanding amount of contributions to the OPEB plan required.
Note 10 — Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The City maintains self-insurance programs for
workers' compensation and general liability up to a maximum of $500,000 and $750,000 per occurrence,
respectively. General liability claims, which exceed the limit, are insured through Independent Cities Risk
Management Authority ("ICRMA") up to $30,000,000 with a maximum per incident of $3,000,000. Workers
compensation claims that exceed the limit are insured by ICRMA up to the California statutory limits for
workers' compensation.
r'
Page 216 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 10 — Risk Management (Continued)
The City is a member of the ICRMA, a public entity risk pool currently operating as a common risk
management and insurance program for 15 California cities. The City pays an annual premium to the pool for its
excess general liability insurance coverage. The agreement for information of the ICRMA provides that the pool
will be self-sustaining through member premiums. The City continues to carry commercial companies for all
other risks of loss, which include property insurance, and cyber liability insurance.
Estimates for all liabilities, up to the self -insured levels, have been accrued in the Workers' Compensation and
the General Liability Self -Insurance Internal Service Funds including an estimate for incurred but not reported
claims. Estimates are based on recommended reserves established by the City's third -party administrators who
administer the City's claims and insurance programs. There have been no significant changes in insurance
coverage as compared to last year and settlements have not exceeded coverage in each of the past three fiscal
years.
The ICRMA has published its own financial report for the year ended June 30, 2020, which can be obtained
from Independent Cities Risk Management Authority, 14156 Magnolia Park, Sherman Oaks, California.
Changes in the balances of claims liabilities for the current and the last two fiscal years follow:
Fiscal Year
Ended
September 30, 2018
September 30, 2019
September 30, 2020
Claims Payable
Annual Current Year Current Year
Claims Payable Claims and Changes Claims
Octoberl in Estimates Payments
$ 11,398,232 $ 1,801,303 $ (922,529)
12,277,006 1,693,379 (2,670,385)
11,300,000 4,437,986 (2,811,986)
Note 11— Joint Venture
Balance
Due within
September 30
One Year
$ 12,277,006
$ 2,069,000
11,300,000
1,887,705
12,926,000
2,502,181
Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force
The City is a member of the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force
(L.A. IMPACT), a joint powers authority of the police departments of cities and other institutions in Los
Angeles County. L.A. Impact was formed July 1, 1991, with the mission to promote coordinated law
enforcement efforts and to address emerging criminal justice issues, mainly in the areas of drug trafficking and
money laundering. The Executive Council consists of 14 police chiefs and other various police officers. All
financial decisions were made by the Executive Council. The members received monetary distributions from
asset seizures based on their respective resource contribution to the effort. The City does not have a measurable
equity interest in LA IMPACT. The net position of LA IMPACT represents a temporary holding of funds to be
distributed to various law enforcement jurisdictions. The distribution of these funds is not determinable until
action has been taken by the courts or the LA IMPACT board of directors with respect to the use of these funds.
100
Page 217 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 11— Joint Venture (Continued)
Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (Continued)
L.A. IMPACT's latest summary financial information as of June 30, 2020 is as follows:
Total assets
Total liabilities
L.A. IMPACT net position
Total liabilities and L.A. IMPACT net position
Total revenues
Total expenses
Change in net position
$ 12,217,792
$ 5,083,504
7,134,288
$ 12,217,792
$ 3,077,333
(5,340,102)
$ (2,262,769)
Complete financial statements for L.A. IMPACT may be obtained at its administrative office:
L.A. IMPACT
5700 South Eastern Avenue
Commerce, CA
90040-2924
Note 12 — Commitments and Contingencies
Litigation
The City is currently a party to various claims and legal proceedings. In management's opinion, the ultimate
liabilities, if any, resulting from such claims and proceedings, will not materially affect the City's financial
position.
Federal and State Grants
The City participates in a number of federal and state assisted grant programs, which are subject to program
compliance audits by the grantors or their representatives. Final closeout audits of these programs have not yet
been completed. Accordingly, the City's ultimate compliance with applicable grant requirements will be
established at some future date. Expenditures, if any, which may be disallowed by the granting agencies cannot
be determined at this time, although the City expects such amounts, if any, to be immaterial.
101
Page 218 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 12 — Commitments and Contingencies
Uncertainties
On January 30, 2020, the World Health Organization ("WHO") announced a global health emergency because
of a new strain of coronavirus (the "COVID-19 outbreak") and the risks to the international community as the
virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as
a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak
continues to evolve as of the date of this report. As such, it is uncertain as to the full magnitude that the
pandemic will have on the City's financial condition. Management is actively monitoring the impact of the
global situation on its financial condition.
102
Page 219 of 328
City of El Segundo
Notes to the Basic Financial Statements
For the Year Ended September 30, 2020
Note 13 — Classification of Fund Balances
At September 30, 2020, fund balances are classified in the governmental funds as follows:
Nonmajor
Total
General
Governmental
Governmental
Fund
Funds
Funds
Nonspendable:
Notes and loans receivable
$ 17,500
$ -
$ 17,500
Inventories
100,264
-
100,264
Prepaids
7,819,879
85,049
7,904,928
Total nonspendable
7,937,643
85,049
8,022,692
Restricted:
Police
-
1,153,341
1,153,341
Fire
-
400,040
400,040
Public works
-
2,482,539
2,482,539
Economic development
-
242,267
242,267
Community and cultural
-
10,165,172
10,165,172
Debt service
-
1,030,291
1,030,291
Pension
4,482,363
-
4,482,363
Total restricted
4,482,363
15,473,650
19,956,013
Assigned:
Police
265,093
-
265,093
Fire
276,394
-
276,394
Public works
56,926
-
56,926
Tobacco License
33,573
33,573
Economic development
1,315,897
-
1,315,897
Parks and recreation
169,548
-
169,548
Library
60,166
-
60,166
Computer refresh
357,294
-
357,294
Encumbrances
-
560,379
560,379
Capital outlay
-
31600,796
3,600,796
Total assigned
2,534,891
4,161,175
6,696,066
Unassigned:
20,807,983
(46,117)
20,761,866
Total fund balance
$ 35,762,880
$ 19,673,757
$ 55,436,637
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This page intentionally left blank
104
Page 221 of 328
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
105
Page 222 of 328
City of El Segundo
Required Supplementary Information
Budgetary Comparison Schedule - General Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Taxes
$ 53,327,867 $
46,065,652
$ 47,730,728
$ 1,665,076
Licenses and permits
14,198,358
13,798,358
14,234,600
436,242
Charges for services
5,307,168
3,807,167
4,307,599
500,432
Use of money and property
824,000
804,000
3,392,762
2,588,762
Fines and forfeitures
412,020
192,020
273,083
81,063
Developer fees
-
-
110,876
110,876
Miscellaneous
2,500,795
2,300,795
2,548,226
247,431
Total revenues
76,570,208
66,967,992
72,597,874
5,629,882
EXPENDITURES:
Current:
General government:
City Council
319,432
308,432
308,625
(193)
City Treasurer
345,375
341,375
325,153
16,222
City Clerk
722,838
634,238
534,170
100,068
City Manager
2,264,431
1,973,726
1,777,642
196,084
City Attorney
585,450
585,450
753,433
(167,983)
Planning
1,170,039
1,076,748
1,119,803
(43,055)
Building and Safety
1,635,631
1,586,086
1,453,529
132,557
Administrative Services
6,113,978
5,550,245
5,459,663
90,582
Non -departmental
6,633,283
6,352,948
7,213,349
(860,401)
Public safety:
Police
21,357,303
20,490,344
21,275,768
(785,424)
Fire
16,577,834
15,848,044
17,085,210
(1,237,166)
Animal Control
253,420
171,579
48,253
123,326
Communications Center
1,565,070
1,590,870
1,549,366
41,504
Public Works:
Administration
390,299
266,299
138,858
127,441
Government Buildings
2,213,572
2,045,802
2,023,035
22,767
Engineering
756,477
1,026,351
926,624
99,727
Streets
2,276,687
2,102,066
2,079,720
22,346
Solid Waste
363,937
378,937
465,356
(86,419)
Storm drain
522,105
610,479
398,547
211,932
Equipment Maintenance
1,583,499
1,456,660
1,201,062
255,598
Community and cultural:
Recreation and Parks
7,890,395
7,098,278
6,023,865
1,074,413
Library
2,489,245
2,394,141
2,291,813
102,328
Capital outlay
11,490
22,041
15,704
6,337
Debt service:
Principal retirement
-
-
54,286
(54,286)
Interest
-
139,714
(139,714)
Total expenditures
78,041,790
73,911,139
74,662,548
(751,409)
Excess (deficiency) of revenues over expenditures
(1,471,582)
(6,943,147)
(2,064,674)
4,878,473
OTHER FINANCING USES:
Transfers in
140,000
140,000
140,000
-
Transfers out
(2,749,000)
(1,249,000)
(1,249,000)
Total other financing uses
(2,609,000)
(1,109,000)
(1,109,000)
-
Net change in fund balances
$ (4,080,582) $
(8,052,147)
(3,173,674)
$ 4,878,473
FUND BALANCE:
Beginning of Year
38,936,554
End of Year
$ 35,762,880
106
Page 223 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Note to the Budgetary Comparison Schedule
For the Year Ended September 30, 2020
Note 1— Budgetary Control and Accounting Policy
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America and are used as a management control device. Annual budgets are adopted for the
General Fund, Special Revenue Funds, Debt Service Funds and the Capital Projects Funds except for the
following Special Revenue Funds: MTA Grant, Certified Access Specialist Program, Affordable
Housing, Cultural and Development, and Special Revenues/Donations.
The City Council approves each year's budget submitted by the City Manager prior to the beginning of
the new fiscal year. Public hearings are conducted prior to its adoption by the City Council. Budgets and
adopted supplemental appropriations, where required during the period, are also approved by the City
Council. Intradepartmental budget changes are approved by the City Manager. The legal level of control,
that is defined as the level at which City Council approval is required for changes, is at the department
level for the General Fund and functional level for all other funds. During the year, several supplementary
appropriations were necessary. All operating budget appropriations lapse at year-end.
107
Page 224 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios
September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Rate Plan
Measurement period and fiscal year
2019-20
2018-19
Total pension liability
Service cost
$ 2,088,245
$ 2,026,099
Interest on total pension liability
8,447,044
8,219,352
Changes of benefit terms
-
-
Changes of assumptions
Differences between expected and actual experience
(221,184)
(38,811)
Benefit payments, including refunds of employee contributions
(6,978,924)
(6,762,739)
Net change in total pension liability
3,335,181
3,443,901
Total pension liability - beginning
120,807,009
117,363,108
Total pension liability - ending (a)
$ 124,142,190
$ 120,807,009
Pension fiduciary net position
Contributions - employer
$ 3,584,857
$ 3,597,197
Contributions - employee
946,546
878,016
Net investment income
4,398,867
5,537,029
Benefit payments, including refunds of employee contributions
(6,978,924)
(6,762,739)
Net plan to plan resource movement
3,966
(127,504)
Administrative expense
(124,138)
(60,654)
Other miscellaneous expense
-
198
Net change in plan fiduciary net position
1,831,174
3,061,543
Plan fiduciary net position - beginning
88,056,385
84,994,842
Plan fiduciary net position - ending (b)
$ 89,887,559
$ 88,056,385
Plan net pension liability - ending (a) - (b)
$ 34,254,631
$ 32,750,624
Plan fiduciary net position as a percentage
of the total pension liability 72.41 % 72.89%
Covered payroll $ 14,212,445 $ 12,851,508
Plan net pension liability as a percentage of covered payroll 241.02% 254.84%
1 Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
Notes to Schedule:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: There were no significant changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in
accordance to the CAPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the
discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate
from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based
on the 7.5 percent discount rate.
108
Page 225 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios (Continued)
September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("CalPERS") - Miscellaneous Rate Plan
Measurement period and fiscal year
2017-18
2016-17
2015-16
2014-15
2013-14
Total pension liability
Service cost
$
2,002,276
$
2,022,687
$
1,836,590
$
1,892,820
$
1,992,358
Interest on total pension liability
7,976,930
7,747,566
7,584,214
7,355,288
7,137,756
Changes of benefit terms
-
-
-
-
-
Changes ofassumptions
(464,769)
6,199,889
-
(1,728,307)
Differences between expected and actual experience
8,203
(813,832)
(899,552)
(1,400,892)
Benefit payments, including refunds of employee contributions
(6,360,824)
(5,830,361)
(5,534,415)
(5,121,477)
(4,825,880)
Net change in total pension liability
3,161,816
9,325,949
2,986,837
997,432
4,304,234
Total pension liability - beginning
114,201,292
104,875,343
101,888,506
100,891,074
96,586,840
Total pension liability - ending (a)
$
117,363,108
$
114,201,292
$
104,875,343
$
101,888,506
$
100,891,074
Pension fiduciary net position
Contributions - employer
$
3,291,215
$
2,381,409
$
2,189,606
$
1,990,762
$
2,229,759
Contributions - employee
905,313
975,818
850,845
883,340
1,271,008
Net investment income
6,839,662
8,294,674
375,088
1,743,059
11,605,717
Benefit payments, including refunds of employee contributions
(6,360,824)
(5,830,361)
(5,534,415)
(5,121,477)
(4,825,880)
Net plan to plan resource movement
(198)
(31,271)
(256)
161,952
Administrative expense
(125,728)
(110,739)
(47,032)
(86,704)
Other miscellaneous expense
(238,760)
-
Net change in plan fiduciary net position
4,310,680
5,679,530
(2,166,164)
(429,068)
10,280,604
Plan fiduciary net position - beginning
80,684,162
75,004,632
77,170,796
77,599,864
67,319,260
Plan fiduciary net position - ending (b)
$
84,994,842
$
80,684,162
$
75,004,632
$
77,170,796
$
77,599,864
Plan net pension liability - ending (a) - (b)
$
32,368,266
$
33,517,130
$
29,870,711
$
24,717,710
$
23,291,210
Plan fiduciary net position as a percentage
of the total pension liability
72.42%
70.65%
71.52%
75.74%
76.91%
Covered payroll
$
12,875,891
$
13,007,635
$
12,983,105
$
13,129,083
$
13,163,041
Plan net pension liability as a percentage of covered payroll
251.39%
257.67%
230.07%
188.27%
176.94%
1 Historical information is presented for measurement periods for which
GASB 68 is applicable. Additional
years' information
will be displayed
as it becomes
available.
Notes to Schedule:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: There were no significant changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in
accordance to the Ca1PERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the
discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate
from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based
on the 7.5 percent discount rate.
109
Page 226 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios
September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("CalPERS") - Safety Rate Plan
Measurement period and fiscal year
Total pension liability
Service cost
Interest
Changes of benefit terms
Changes of assumptions
Differences between expected and actual experience
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Pension fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Net plan to plan resource movement
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net pension liability - ending (a) - (b)
Plan fiduciary net position as a percentage
of the total pension liability
Covered payroll
Plan net pension liability as a percentage of covered payroll
2015-16
$ 3,906,152
18,561,546
2014-15
$ 4,017,009
18,050,364
2013-14
$ 4,084,900
17,643,395
(4,336,187)
(2,593,008)
(4,610,542)
(13,146,807)
(12,326,846)
(11,753,968)
6,727,883
793,798
9,974,327
249,847,921
249,054,123
239,079,796
$ 256,575,804
$
249,847,921
$
249,054,123
$ 6,497,421
$
6,155,214
$
5,466,181
1,288,776
1,697,612
1,556,189
792,070
3,716,152
25,110,451
(13,146,807)
(12,326,846)
(11,753,968)
256
568
(101,008)
(186,524)
-
(4,669,292)
(943,824)
20,378,853
165,737,083
166,680,907
146,302,054
$ 161,067,791
$
165,737,083
$
166,680,907
$ 95,508,013
$
84,110,838
$
82,373,216
62.78%
66.34%
66.93%
$ 14,438,355
$
14,977,101
$
14,757,054
661.49%
561.60%
558.20%
The City's Safety Plan was converted from an Agent Multiple Employer Defined Plan to a Cost Sharing Multiple Employer Defined Benefit Plan starting from the
measurement period June 30, 2017. Information is only displayed for years GASB 68 were in effect and prior to the conversion of the plan.
Notes to Schedule:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation
date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative
expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
110
Page 227 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios
September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("Ca1PERS") - Safety Rate Plan
Measurement period and fiscal year
City Proportion of the Net Pension Liability
City's Proportionate Share of
the net Pension Liability
City's Covered Payroll
City's Proportionate Share of the Net Pension
Liability as a Percentage of Its Covered Payroll
Plan's Proportionate Share of the Fiduciary Net Position
as a Percentage of the Total Pension Liability
2019-20
2018-19
2017-18
2016-17
1.7727%
1.7839%
1.1081%
1.0764%
$ 118,102,353
$ 111,360,318
$ 106,775,573
$ 106,751,685
$ 13,583,547
$ 12,490,385
$ 12,742,792
$ 12,697,818
869.45%
891.57%
837.93%
840.71%
75.10%
75.26%
75.26%
73.31%
I The City's Safety Plan was converted from an Agent Multiple Employer Defined Plan to a Cost Sharing Multiple Employer Defined Benefit Plan starting from the
measurement period June 30, 2017. Information is only displayed for years the plan was converted to a cost sharing plan.
Changes in Assumptions:
From measurement period and fiscal year 2016-17 to 2017-18: The discount rate was reduced from 7.65% to 7.15%.
From measurement period and fiscal year 2017-18 to 2018-19: There were no significant changes in assumptions.
Ill
Page 228 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios
September 30, 2020
Last Ten Fiscal Years'
Public Agency Retirement System Defined Benefit Plan
Fiscal year
2019-20
2018-19
Measurement period
2018-19
2017-18
Total pension liability
Service cost
$ -
$
Interest
126,122
115,441
Changes of assumptions
-
(62,152)
Differences between expected and actual experience
187,849
Benefit payments, including refunds of employee contributions
(97,156)
(196,140)
Net change in total pension liability
28,966
44,998
Total pension liability - beginning
2,241,998
2,197,000
Total pension liability - ending (a)
$ 2,270,964
$ 2,241,998
Pension fiduciary net position
Contributions - employer
$ 158,000 $
158,000
Contributions - employee
-
-
Net investment income
53,443
69,282
Benefit payments, including refunds of employee contributions
(97,156)
(196,140)
Administrative expense
(5,517)
(5,455)
Net change in plan fiduciary net position
108,770
25,687
Plan fiduciary net position - beginning
1,087,687
1,062,000
Plan fiduciary net position - ending (b)
$ 1,196,457 $
1,087,687
Plan net pension liability - ending (a) - (b)
$ 1,074,507 $
1,154,311
Plan fiduciary net position as a percentage
of the total pension liability
52.68%
48.51%
Covered payroll
N/A
N/A
Plan net pension liability as a percentage of covered payroll
N/A
N/A
I Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
Changes in Assumptions:
Actuarial valuation date
June 30, 2016
Fiscal year
2017-18 and 2016-17
Measurement period
2016-17 and 2015-16
Discount rate
5.50%
Rate of return on assets
5.50%
Inflation rate
5.50%
Mortality, retirement, disability, and termination
Ca1PERS 1997-2011
Mortality improvement scale
Experience Study
Scale MP-2014
112
Page 229 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios
September 30, 2020
Last Ten Fiscal Years'
Public Agency Retirement System Defined Benefit Plan
Fiscal year
Measurement period
Total pension liability
Service cost
Interest
Changes of assumptions
Differences between expected and actual experience
Benefit payments, including refunds of employee contributions
Net change in total pension liability
2017-18 2016-17 2015-16 2014-15
2016-17 2015-16 2014-15 2013-14
$ - $ - $ - $ 54,000
119,000 121,000 113,000 110,000
- - 140,000 -
93,000
(174,000) (141,000) (81,000) (37,000)
(55,000) (20,000) 265,000 127,000
Total pension liability - beginning
2,252,000
2,272,000
2,007,000
1,880,000
Total pension liability - ending (a)
$
2,197,000
$
2,252,000
$
2,272,000
$
2,007,000
Pension fiduciary net position
Contributions - employer
$
236,000
$
-
$
-
$
-
Contributions - employee
-
16,000
167,000
193,000
Net investment income
91,000
72,000
(11,000)
52,000
Benefit payments, including refunds of employee contributions
(174,000)
(141,000)
(81,000)
(37,000)
Administrative expense
(5,000)
(5,000)
(5,000)
(5,000)
Net change in plan fiduciary net position
148,000
(58,000)
70,000
203,000
Plan fiduciary net position - beginning
914,000
972,000
902,000
699,000
Plan fiduciary net position - ending (b)
$
1,062,000
$
914,000
$
972,000
$
902,000
Plan net pension liability - ending (a) - (b)
$
1,135,000
$
1,338,000
S
1,300,000
$
1,105,000
Plan fiduciary net position as a percentage
of the total pension liability
48.34%
40.59%
42.78%
44.94%
Covered payroll
N/A
N/A
N/A
N/A
Plan net pension liability as a percentage of covered payroll
N/A
N/A
N/A
N/A
Historical information is presented only for measurement periods for which GASB 68 is applicable. Additional years'
information will
be displayed
as it becomes available.
113
Page 230 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions
For the Year Ended September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("Ca1PERS") - Miscellaneous Rate Plan
Fiscal year
Actuarially determined contribution
Contributions in relation to
the actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
2019-20 2018-19
$ 3,695,146 $ 3,421,223
(3,695,146) (3,728,014)
$ $ (306,791)
$ 14,446,483 $ 13,136,731
25.58% 28.38%
Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
Notes to Schedule:
Valuation date
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation
(4) The probabilities of Retirement are based on the 2014 Ca1PERS Experience Study for the period from 1997 to 2011.
(5) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study
adopted by the Ca1PERS Board.
6/30/2018 6/30/2017
Entry age Entry age
(1) (1)
Fair value Fair value
(2)
(2)
7.25% (3)
7.25% (3)
(4)
(4)
(5)
(5)
114
Page 231 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions (Continued)
For the Year Ended September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("Ca1PERS") - Miscellaneous Rate Plan
Fiscal year
Actuarially determined contribution
Contributions in relation to
the actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
2017-18 2016-17 2015-16 2014-15 2013-14
$ 2,712,223 $ 2,360,497 $ 2,267,956 $ 2,047,988 $ 2,631,370
(3,291,215) (2,360,497) (2,267,956) (2,047,988) (2,631,370)
$ (578,992) $ - $ - $ - $ -
$ 12,842,526 $ 11,980,872 $ 12,484,558 $ 12,279,995 $ 12,782,090
25.63% 19.70% 18.17% 16.68% 20.59%
Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional
contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
Notes to Schedule:
Valuation date
6/30/2016
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Entry age
Amortization method
(1)
Asset valuation method
Fair value
Inflation
Salary increases
(2)
Investment rate of return
7.375% (3)
Retirement age
(4)
Mortality
(5)
6/30/2015
6/30/2014
6/30/2013
6/30/2012
Entry age
Entry age
Entry age
Entry age
(1)
(1)
(1)
(1)
Fair value
Fair value
Fair value
Market value
2.75%
2.75%
2.75%
2.75%
(2)
(2)
(2)
(2)
7.50% (3)
7.50% (3)
7.50% (3)
7.50% (3)
(4)
(4)
(4)
(4)
(5)
(5)
(5)
(5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation
(4) The probabilities of Retirement are based on the 2014 Ca1PERS Experience Study for the period from 1997 to 2011.
(5) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study
adopted by the Ca1PERS Board.
115
Page 232 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions
For the Year Ended September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("Ca1PERS") - Safety Rate Plan
Fiscal year
Actuarially determined contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered
payroll
2019-20 2018-19
$ 10,830,665 $ 9,186,753
(10,830,665) (10,424,853)
$ - $ (1,238,100)
$ 13,606,528 $ 12,668,674
79.60% 82.29%
I Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
Notes to Schedule:
Valuation date
6/30/2018
6/30/2017
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial cost method
Entry age
Entry age
Amortization method
(1)
(1)
Asset valuation method
Fair value
Fair value
Inflation
Salary increases
(2)
(2)
Investment rate of return
7.25% (3)
7.25% (3)
Retirement age
(4)
(4)
Mortality
(5)
(5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation
(4) The probabilities of Retirement are based on the 2014 Ca1PERS Experience Study for the period from 1997 to 2011.
(5) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study
adopted by the Ca1PERS Board.
116
Page 233 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions (Continued)
For the Year Ended September 30, 2020
Last Ten Fiscal Years'
California Public Employees' Retirement System ("Ca1PERS") - Safety Rate Plan
Fiscal year
Actuarially determined contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered
payroll
2017-18 2016-17 2015-16 2014-15 2013-14
$ 8,480,050 $ 5,282,029 $ 6,581,713 $ 6,355,099 $ 6,316,752
(8,500,586) (5,282,029) (6,581,713) (6,355,099) (6,316,752)
$ (20,536) $ - $ - $ - $ -
$ 12,614,944 $ 12,410,252 $ 13,711,733 $ 13,863,160 $ 14,420,062
67.39% 42.56% 48.00% 45.84% 43.81%
I Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
Notes to Schedule:
Valuation date
6/30/2016
Methods and Assumptions Used to Determine
Contribution Rates:
Actuarial cost method
Entry age
Amortization method
(1)
Asset valuation method
Fair value
Inflation
Salary increases
(2)
Investment rate of return
7.375% (3)
Retirement age
(4)
Mortality
(5)
6/30/2015
6/30/2014
6/30/2013
6/30/2012
Entry age
Entry age
Entry age
Entry age
(1)
(1)
(1)
(1)
Fair value
Fair value
Fair value
Market value
2.75%
2.75%
2.75%
2.75%
(2)
(2)
(2)
(2)
7.50% (3)
7.50% (3)
7.50% (3)
7.50% (3)
(4)
(4)
(4)
(4)
(5)
(5)
(5)
(5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation
(4) The probabilities of Retirement are based on the 2014 Ca1PERS Experience Study for the period from 1997 to 2011.
(5) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study
adopted by the Ca1PERS Board.
117
Page 234 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions
For the Year Ended September 30, 2020
Last Ten Fiscal Years'
Fiscal year
Actuarially determined contribution
Contributions in relation to
the actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Public Agency Retirement System Defined Benefit Plan
im,ow $ im,u1111 $ im,u1111
(158,000) (158,000) (158,000)
N/A N/A N/A
N/A N/A N/A
Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Fiscal year
Actuarial valuation date
Actuarial cost method
Amortization method
Asset valuation method
Inflation
Cost of Living Adjustment
Investment rate of return
Mortality, retirement, disability, and termination
Mortality improvement scale
2019-20
2018-19
2017-18
6/30/16
6/30/16
6/30/16
Entry Age Normal
Level Dollar, Closed
Market value
3.00%
3.00%
3.00%
2.00%
2.00%
2.00%
5.50%
5.50%
5.50%
Ca1PERS
1997-2011 Experience Study
Scale MP-2014
118
Page 235 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions
For the Year Ended September 30, 2020
Last Ten Fiscal Years'
Public Agency Retirement System Defined Benefit Plan
Fiscal year
2016-17
2015-16 2014-15
Actuarially determined contribution
$ 118,000 $
118,000 $
Contributions in relation to
the actuarially determined contribution
(236,000)
-
Contribution deficiency (excess)
$ (118,000) $
118,000 $
Covered payroll
N/A
N/A N/A
Contributions as a percentage of covered payroll N/A
N/A N/A
Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes
available.
119
Page 236 of 328
City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Changes in Total OPEB Liability and Related Ratios
September 30, 2020
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
Measurement period and fiscal year
Total OPEB liability
Service cost
Interest
Changes of benefit terms
Changes of assumptions
Differences between expected and actual experience
Benefit payments, including refunds
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
OPEB fiduciary net position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Plan net OPEB liability - ending (a) - (b)
Plan fiduciary net position as a percentage of the total OPEB liability
Covered payroll'
Plan net OPEB liability as a percentage of covered payroll
` For the 12-month period ended on June 30, 2018 (Measurement Date).
IM I o_1?n In R-1 Q
$ 1,325,398 $ 1,428,884 $
4,096,818 4,265,776
- (4,289,232)
In1 7-1 R
1,387,266
4,137,853
(1,323,051)
(6,345,201)
(3,868,684) (3,741,351) (3,601,811)
(6,114,720) (2,335,923) 1,923,308
61,302,549
63,638,472
61,715,164
$ 55,187,829
$
61,302,549
$
63,638,472
$ 4,425,712
$
4,399,351
$
4,026,811
884,584
1,431,779
1,634,752
(3,868,684)
(3,741,351)
(3,601,811)
(21,262)
(4,901)
(38,164)
1,420,350
2,084,878
2,021,588
24,641,464
22,556,586
20,534,998
$ 26,061,814
$
24,641,464
$
22,556,586
$ 29,126,015
$
36,661,085
$
41,081,886
47.22%
40.20%
35.44%
$ 32,938,247
$
25,506,339
$
25,512,342
88.43%
143.73%
161.03%
Changes in Benefit Terms:
From measurement period ended June 30, 2018 to June 30 ,2019:
-Management and Conf: Monthly cap and maximum cap changed from $1,200/$1,600 to $782/$585.
-Executive: Monthly cap and maximum cap changed from $1,200/$1,600 to $782/$782.
•PMA: Monthly Cap changed from $1,200 to average HMO family premium but no more than active cap ($1,575 for 2020, $1,650 for 2021). Maximum cap
increased from $1,200 to $1,650.
•PSSEA: Monthly Cap changed from $1,200 to average HMO family premium but no more than active cap ($1,450 2019, $1,500 for 2020, $1,600 for 2021,
$1,650 for 2022). Maximum cap increased from $1,200 to $1,650.
•SPEA: Monthly Cap changed from $1,200 to average HMO family premium but no more than active cap ($1,500 for 2019, $1,550 for 2020, $1,600 for
2021, $1,650 for 2022). Maximum cap increased from $1,200 to $1,650.
•CEA: Monthly Cap changed from $1,115.67 to average HMO family premium but no more than active cap ($1,500 for 2020, $1,550 for 2022, $1,600 for
2023).
-Police & Fire: Monthly Cap (Average HMO family) but no more than active cap ($1,500 for 2019, $1,575 for 2020, $1,650 for 2021); Fire Maximum Cap
increased from $1,600 to $1,800.
Changes in Assumptions
From measurement period ended June 30, 2019 to June 30 ,2020:
The mortality improvement scale was updated to Scale MP-2019 from MP-2017. The healthcare trend changed from 7.50% non -medicare and 6.50%
medicare to 7.25% non -medicare and 6.3% medicare.
120
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City of El Segundo
Required Supplementary Information (Unaudited)
Schedule of Contributions
For the Year Ended September 30, 2020
Fiscal years
Actuarially determined contribution
Contributions in relation to
the actuarially determined contribution
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Last Ten Fiscal Years
Other Postemployment Benefits ("OPEB") Plan
2019-20 2018-19 2017-18
$ 4,436,000 $ 4,306,000 $ 3,876,000
(4,455,502) (4,435,351) (4,044,912)
$ (19,502) $ (129,351) $ (168,912)
$ 34,151,544 $ 26,049,352 $ 25,382,610
13.05% 17.03% 15.94%
I Historical information is presented for measurement periods for which GASB 75 is applicable. Additional years' information will be displayed as it becomes
available.
2 Determined for the 12 month period ending on September 30, 2018 (fiscal year end).
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions are as follows:
Methods and assumptions used to determine contribution rates:
Date of actuarial valuation report
Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Discount rate
General inflation
Medical trend
Mortality, withdrawal, disability
(1) 6.5% (Non -Medicare) and 6.7% (Medicare) for 2018, decreasing to an ultimate rate of 5.0% in 2021.
(2) 7.5% (Non -Medicare) and 6.5% (Medicare) for 2019, decreasing to an ultimate rate of 4.0% in 2076.
(3) Ca1PERS 1997-2011 experience study. Mortality Improvement Scale MP-2014.
(4) Ca1PERS 1997-2015 experience study. Mortality Improvement Scale MP-2017.
6/30/2017
6/30/2017
6/30/2015
Entry Age Normal
Level percentage of payroll
22 years
23 years
25 years
Investment gains and losses spread over 5-year rolling
period
6.75%
6.75%
7.50%
2.75%
2.75%
3.00%
(2)
(2)
(1)
(4)
(4)
(3)
121
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122
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SUPPLEMENTARY INFORMATION
123
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ASSETS
Cash and investments
Restricted cash
Receivables:
Taxes
Accounts
Interest
Notes and loans
Due from other funds
Due from other governments
Inventories
Prepaids
Total assets
City of El Segundo
Combining Schedule - Balance Sheet
General Funds
September 30, 2020
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources
Unavailable revenues
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Economic
Uncertainty
General Fund
Hyperion
Mitigation
$ 18,047,477 $ 2,000,004 $ 106,444
4,482,363 - -
4,566,739 -
552,739 -
290,487 -
17,500 -
409,361 -
646,269 - -
100,264 - -
7,819,879 - -
$ 36,933,078 $ 2,000,004 $ 106,444
$ 1,163,214 $ - $ -
2,265,341 - -
2,336 - -
30,868 - -
583,426 - -
4,045,185 - -
1,019,330 - -
1,019,330 - -
7,937,643 - -
4,482,363 - -
1,218,994 -
18,229,563 2,000,004 106,444
31,868,563 2,000,004 106,444
$ 36,933,078 $ 2,000,004 $ 106,444
124
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City of El Segundo
Combining Schedule - Balance Sheet (Continued)
General Funds
September 30, 2020
ASSETS
Cash and investments
Restricted cash
Receivables:
Taxes
Accounts
Interest
Notes and loans
Due from other funds
Due from other governments
Inventories
Prepaids
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources
Unavailable revenues
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
Facilities Project
Maintenance Deposits
Fund Fund Total
$ - $ 1,956,144 $ 22,110,069
- - 4,482,363
- - 4,566,739
- - 552,739
- - 290,487
- - 17,500
- - 409,361
- - 646,269
- - 100,264
- - 7,819,879
$ - $ 1,956,144 $ 40,995,670
$ - $ 102,905 $ 1,266,119
- - 2,265,341
- - 2,336
- 30,868
- 65,370 648,796
- 168,275 4,213,460
1,019,330
- 1,019,330
7,937,643
- - 4,482,363
1,315,897 2,534,891
- 471,972 20,807,983
1,787,869 35,762,880
$ - $ 1,956,144 $ 40,995,670
125
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City of El Segundo
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
General Funds
For the Year Ended September 30, 2020
Economic
Hyperion
Uncertainty
Mitigation
General Fund
Fund
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer Fees
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers in
Transfers out
Total other financing uses
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
$ 47,730,728-
14,234,600 - -
4,073,968 - -
3,391,924 - 838
273,083 - -
110,876 - -
2,548,226 - -
72,363,405 - 838
18,915,481 - -
39,958,597 - -
7,226,521 - 6,681
8,315,678 - -
15,704 - -
54,286 - -
139,714 - -
74,625,981 - 6,681
(2,262,576) - (5,843)
140,000 - -
(1,249,000) - -
(1,109,000) - -
(3,371,576) - (5,843)
35,240,139 2,000,004 112,287
$ 31,868,563 $ 2,000,004 $ 106,444
126
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City of El Segundo
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances (Continued)
General Funds
For the Year Ended September 30, 2020
Facilities
Project
Maintenance
Deposits
Fund
Fund Total
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer Fees
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers in
Transfers out
Total other financing uses
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
47,730,728
- - 14,234,600
- 233,631 4,307,599
- 3,392,762
- - 273,083
- 110,876
- - 2,548,226
233,631 72,597,874
- 29,886 18,945,367
- 39,958,597
- - 7,233,202
_ _ 8,315,678
- - 15,704
- - 54,286
139,714
- 29,886 74,662,548
203,745 (2,064,674)
- 140,000
- (1,249,000)
- (1,109,000)
203,745 (3,173,674)
- 1,584,124 38,936,554
$ - $ 1,787,869 $ 35,762,880
127
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128
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NON -MAJOR
GOVERNMENTAL FUNDS
Special Revenue Funds:
State Gas Tax Fund - Accounts for a share of revenues derived from the State Highway Users' Tax under
Sections 2105, 2106, 2107, and 2107.5. The revenue is derived from a share of the gasoline taxes and is used
for the construction and maintenance of the road network system of the City.
Residential Sound Insulation Program Fund - Accounts for the grants received from the Federal Aviation
Administration (FAA) and the Los Angeles World Airports (LAWA). The fund is used to provide acoustical
treatment of homes in El Segundo that are within the extreme airport noise impact zone, in order to create a
better sound environment inside the home.
Certified Union Program Agencies - Accounts for revenues and expenditures for the Endorsement and
Emergency Response Program (EERP), a consolidation of six environmental programs at the local level.
Community Development Block Grant (CDBG) - Accounts for revenues received from the Department of
Housing & Urban Development (HUD). These revenues must be expended to accomplish one of the following
objectives: elimination of slum or blight to low and moderate income persons; or, to meet certain urgent
community development needs. The City of El Segundo uses this revenue to fund eligible senior activities
such as in -home care; art classes; counseling; and home delivered meals, administered by the Planning &
Building Safety Department. (Note: Beginning in fiscal year 2015-2016, the City decided to fund urgent
community development needs such as senior in -home care, delivered meals, etc. from the General Fund at
to solely use CDBG funds to build access ramps to comply with the Americans with Disabilities Act (ADA).
Asset Forfeiture Fund - Accounts for receipt and disbursement of narcotic forfeitures received from the
County, State, and Federal agencies pursuant to Section 11470 of State Health & Safety Code and Federal
Statute 21 USC Section 881.
Prop "A" Transportation Fund - Accounts for the one-half (1/2) cent Sales Tax approved by the voters of
Los Angeles County to be used for local transportation purposes. These revenues are collected by the State
and a portion is funneled to the City through the Los Angeles County Transportation Commission. The City
of El Segundo uses this fund to participate in CTIP/MAX, a regional commuter service and to provide Dial -
a -Ride; beach shuttles; and various transportation services.
Prop "C" Transportation Fund - Accounts for the one-half (1/2) cent Sales Tax approved by the voters of
Los Angeles County in November 1990. Collection of the tax began in April 1991. Proceeds are to be used to
improve transit services and operations; reduce traffic congestion; improve air quality; operate and improve
the condition of the streets and freeways utilized by public transit; and reduce foreign oil dependence.
Traffic Safety Fund - Accounts for a portion of the Vehicle Code violation fines and penalties collected by
the Los Angeles County Municipal Court. By State law, this money must be used for traffic safety related
expenditures including traffic enforcement and capital projects.
129
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NON -MAJOR
GOVERNMENTAL FUNDS
Special Revenue Funds (Continued):
Air Pollution Reduction Fund - Accounts for the City's share of funds received under the Health & Safety
Code Section 44223 (AB 2766) to finance mobile source air pollution reduction programs consistent with the
California Clean Air Act of 1988. The fund, derived from additional vehicle registration fee, is used to support
the South Coast Air Quality Management District's (SCAQMD) program to reduce air pollution from motor
vehicles.
TDA Article 31SB 821 Bikeway Fund - Accounts for the monies the City receives from the Transportation
Development Act Article 3 which are to be specifically used for construction or repair of bikeways, sidewalks,
or handicapped accesses.
COPS Fund - Accounts for receipt and disbursement of funds received under the State Citizens' Option for
Public Safety (COPS) program allocated pursuant to Government Code Section 30061 enacted by AB 3229,
Chapter 134 of the 1996 Statues. This fund, also known as the Supplemental Law Enforcement Services Fund
(SLESF), is allocated based on population and can only be spent for "front line municipal police services"
such as local crime prevention and community -oriented policing, per Government Code Section 30061 (c)(2).
MTA Grant Fund - Accounts for receipt and disbursement of funds received from the exchange of Federal
Surface Transportation Program - Local Funds for Local Transportation Funds from Los Angeles County
Metropolitan Transportation Authority.
Measure R Fund - Accounts for the one-half (1/2) Sales Tax approved by the voters of Los Angeles County
to be used for local transportation needs. These revenues are received by the State and a portion is funneled
to the City through the Los Angeles County Metropolitan Transportation Authority. The City of El Segundo
uses these funds for street improvements.
Federal Grants Fund - Accounts for revenues and expenditures for each Federal grant awarded to the City.
State & County Grants Fund - Accounts for revenues and expenditures for each State or County grant
awarded to the City.
PSAF Property Tax Public Safety Fund - Accounts for the one-half (1/2) cent Sales Tax approved by the
voters in November 1993 under Prop 172. These revenues must be spent for public safety (police and fire
services) purposes only.
Senior Housing Fund - Accounts for the revenues and expenditures from the El Segundo Senior Citizen
Housing Corporation.
Measure M Fund - Accounts for the one-half (1 /2) cent Sales Tax approved by the voters in November 2016.
These revenues must be spent to ease traffic congestion.
130
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NON -MAJOR
GOVERNMENTAL FUNDS
Special Revenue Funds (Continued):
SB I Fund - Accounts for the revenues and expenditures from the Road Repair and Accountability Act of
2017. These revenues must be spent for local streets and roads.
Certified Access Specialist Program ("CASP') - Accounts for the fees collected to increase disability access
and compliance with construction related accessibility requirements.
Affordable Housing - Accounts for the revenue and expenditures related to the construction and purchase of
affordable housing.
Cultural Development - Accounts for the 1 percent in -lieu fee imposed on new developments over $2 million
to meet the public art requirement. These revenues must be spent on design, acquisition, commission,
installation, improvement, maintenance and insurance of artwork or sponsoring and supporting artistic and
cultural services in the City.
Special Revenue/Donations Special Revenue Fund - To account for donations received from private
individuals or entities that are to be spent on specific activities or programs not funded by the City.
Debt Service Fund:
Facility Lease Fund - Accounts for the lease agreement with the California Infrastructure and Economic
Development Bank (CIEDB) whereby CIEDB issued bonds in the amount of $10 million to finance the
Douglas Street Gap Closure Project. The City will make rental lease payments over a 30-year period starting
February 1, 2006, at an interest rate of 2.87% per annum. Interest payments on the lease obligation are due on
February 1 and August 1 of each year. Base rental payments will be mailed to the City reflecting the actual
amount owed prior to each base rental payment due date.
Capital Projects Fund:
Capital Improvement Fund - Accounts for construction of capital facilities typically financed by the City's
General Fund and any grant not accounted for in a special revenue fund.
131
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132
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ASSETS
Cash and investments
Receivables:
Accounts
Interest
Notes and loans
Due from other governments
Prepaids
Total assets
City of El Segundo
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2020
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Due to other funds
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Special Revenue Funds
Certified
Residential Union
Community
State Sound Program
Development Asset
Gas Tax Insulation Agencies
Block Grant Forfeiture
$ 128,634 $ 453,493 $ 278,994 $ $ 742,104
- - 41,852 -
134 -
- 49,405
11,052 - 73,997 - -
$ 339,686 $ 553,627 $ 994,843 $ 49,405 $ 442,104
$ 80 $ $ 53,971 $ $ 16,856
6,892 21,788 21
10,664
6,972 75,759 10,664 16,877
11,052 - 73,997 - -
121,662 453,627 245,087 38,741 725,227
132,714 453,627 319,084 38,741 725,227
$ 139,686 $ 553,627 $ 994,843 $ 49,405 $ 442,104
133
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ASSETS
Cash and investments
Receivables:
Accounts
Interest
Notes and loans
Due from other governments
Prepaids
Total assets
City of El Segundo
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
September 30, 2020
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Due to other funds
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Revenue Funds
Air
Traffic Pollution SB 821
Prop A Prop C Safety Reduction Bikeway
$ 902,124 $ 865,992 $ 44,518 $ 96,906 $ 58,697
24,815 1,770
$ 002,124 $ 990,807 $ 46,288 $ 96,906 $ 58,697
$ 863 $ 8,446 $ $ $
324 -
1,187 8,446
900,937
882,361
46,288
96,906
58,697
900,937
882,361
46,288
96,906
58,697
$ 902,124 $
990,807 $
46,288 $
96,906 $
58,697
134
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ASSETS
Cash and investments
Receivables:
Accounts
Interest
Notes and loans
Due from other governments
Prepaids
Total assets
City of El Segundo
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
September 30, 2020
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Due to other funds
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Revenue Funds
MTA Federal State
C.O.P.S. Grant Measure R Grants Grants
$ 275,747 $ 308,314 $ 879,942 $ $ 101,244
56,727 209,898
$ 332,474 $ 008,314 $ 779,942 $ 009,898 $ 001,244
- 53,305
294,218 -
294,218 53,305
202,710
202,710
332,474 14,096 879,942 101,244
- - - (46,117) -
332,474 14,096 879,942 (46,117) 101,244
$ 332,474 $ 008,314 $ 779,942 $ 009,898 $ 001,244
135
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ASSETS
Cash and investments
Receivables:
Accounts
Interest
Notes and loans
Due from other governments
Prepaids
Total assets
City of El Segundo
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
September 30, 2020
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Due to other funds
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Special Revenue Funds
Certified
PSAF Access
Property Tax Senior Specialist
Public Safety Housing Measure M SB 1 Program
$ 134,092 $ 1,831,242 $ 740,529 $ 625,813 $ 72,190
- 3,585 - - -
2,591 28,412
$ 136,683 $ 1, 334,827 $ 440,529 $ 554,225 $ 72,190
$ $ 1,694 $ $ $
7,488 105
845,423 -
854,605 105
136,683
980,222
740,529
654,225
72,085
136,683
980,222
740,529
654,225
72,085
$ 136,683
$ 1, 334,827 $
440,529 $
554,225 $
72,190
136
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ASSETS
Cash and investments
Receivables:
Accounts
Interest
Notes and loans
Due from other governments
Prepaids
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Retentions payable
Due to other funds
Unearned revenue
Deposits payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned (deficit)
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
City of El Segundo
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
September 30, 2020
Debt
Capital
Special Revenue Funds Service Fund
Projects Fund
Special
Affordable Cultural Revenues / Facility
Capital
Housing Development Donations Lease
Improvement Total
$ 5,300,000 $ 529,056 $ 1,119,915 $ 1,030,291 $ 4,533,119 $ 21,052,956
- - 25,000 - - 70,437
- 134
49,405
324,213
- - - - - 85,049
$ 5,300,000 $ 229,056 $ 1, 444,915 $ 1, 330,291 $ 4, 333,119 $ 21, 882,194
$ 2,250 $ $ 9,395 $ $ 357,811 $ 451,366
- - - 36,618
14,133 14,133
- 63,969
294,218
845,423
2,250 9,395 371,944 1,705,727
202,710
202,710
- - - - 85,049
5,297,750 529,056 1,135,520 1,030,291 - 15,473,650
- - - - 4,161,175 4,161,175
- - - - - (46,117)
5,297,750 529,056 1,135,520 1,030,291 4,161,175 19,673,757
$ 5, 000,000 $ 229,056 $ 1, 444,915 $ 1, 330,291 $ 4, 333,119 $ 21, 882,194
137
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City of El Segundo
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer fees
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt Service:
Principal retirement
Interest
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
Special Revenue Funds
Certified
Residential
Union
Community
State
Sound
Program
Development
Asset
Gas Tax
Insulation
Agencies Fund
Block Grant
Forfeiture
$
$
$ 5,140
$
$
3,123
393,523
-
99,808
64,248
-
487,882
-
-
607
5,137
1,393
4,931
-
-
61,650
-
394,130
5,137
559,188
99,808
69,179
- 166,081
149,289 - - -
- 465 608,659 - -
- - 104,808 343,172
149,289 465 608,659 104,808 509,253
244,841 4,672 (49,471) (5,000) (440,074)
244,841 4,672 (49,471) (5,000) (440,074)
(112,127) 448,955 368,555 43,741 1,165,301
$ 132,714 $ 453,627 $ 319,084 $ 38,741 $ 725,227
138
Page 255 of 328
City of El Segundo
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
Special Revenue Funds
Air
Traffic
Pollution
SB 821
Prop A
Prop C
Safety
Reduction
Bikeway
REVENUES:
Taxes
$
$
$ $
$
Licenses and permits
Intergovernmental
324,653
268,797
21,492
12,137
Charges for services
-
-
-
-
Use of money and property
7,033
8,020
555
405
Fines and forfeitures
-
-
32,312
-
-
Developer fees
-
Miscellaneous
-
-
-
-
-
Total revenues
331,686
276,817
32,312
22,047
12,542
EXPENDITURES:
Current:
General government
-
-
-
-
-
Public safety
Public works
-
-
Community and cultural
231,839
22,634
-
Capital outlay
-
159,052
28,798
Debt Service:
Principal retirement
-
-
Interest
-
-
-
Total expenditures
231,839
181,686
-
28,798
-
EXCESS (DEFICIENCY) OF REVENUES
OVER(UNDER)EXPENDITURES
99,847
95,131
32,312
(6,751)
12,542
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
Transfers out
(140,000)
Total other financing sources (uses)
-
-
(140,000)
-
NET CHANGE IN FUND BALANCES
99,847
95,131
(107,688)
(6,751)
12,542
FUND BALANCES:
Beginning of year
801,090
787,230
153,976
103,657
46,155
End of year
$ 900,937
$ 882,361
$ 46,288 $
96,906
$ 58,697
139
Page 256 of 328
City of El Segundo
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
Special Revenue Funds
MIA Federal State
C.O.P.S. Grant Measure R Grants Grants
REVENUES:
Taxes
$ $
$
$ $
Licenses and permits
Intergovernmental
156,727
382,738
12,305
135,467
Charges for services
-
-
-
-
Use of money and property
2,582
2,429
8,065
Fines and forfeitures
-
-
-
Developer fees
Miscellaneous
-
-
-
-
-
Total revenues
159,309
2,429
390,803
12,305
135,467
EXPENDITURES:
Current:
General government
-
-
-
-
-
Public safety
Public works
-
Community and cultural
-
-
53,734
Capital outlay
43,471
1,525
-
Debt Service:
Principal retirement
-
-
Interest
-
-
-
Total expenditures
43,471
-
1,525
-
53,734
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
115,838
2,429
389,278
12,305
81,733
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
-
Transfers out
Total other financing sources (uses)
-
-
-
-
-
NET CHANGE IN FUND BALANCES
115,838
2,429
389,278
12,305
81,733
FUND BALANCES:
Beginning of year
216,636
11,667
490,664
(58,422)
19,511
End of year
$ 332,474 $
14,096 $
879,942
$ (ILI 171 $
101,244
140
Page 257 of 328
City of El Segundo
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
Special Revenue Funds
Certified
PSAF
Access
Property Tax
Senior
Specialist
Public Safety
Housing
Measure M
SB 1
Program
REVENUES:
Taxes
$ 31,915
$
$ $
$
Licenses and permits
-
Intergovernmental
227,495
292,405
Charges for services
-
-
-
22,070
Use of money and property
1,104
24,852
6,356
5,330
695
Fines and forfeitures
-
-
-
-
-
Developer fees
Miscellaneous
-
-
-
-
-
Total revenues
33,019
24,852
233,851
297,735
22,765
EXPENDITURES:
Current:
General government
-
-
-
-
-
Public safety
Public works
-
Community and cultural
78,444
-
Capital outlay
-
1,007
Debt Service:
Principal retirement
-
Interest
-
-
Total expenditures
-
78,444
-
1,007
-
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
33,019
(53,592)
233,851
296,728
22,765
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
Transfers out
Total other financing sources (uses)
-
-
-
-
NET CHANGE IN FUND BALANCES
33,019
(53,592)
233,851
296,728
22,765
FUND BALANCES:
Beginning of year
103,664
1,033,814
506,678
357,497
49,320
End of year
$ 136,683
$ 980,222
$ 740,529 $
654,225
$ 72,085
141
Page 258 of 328
City of El Segundo
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended September 30, 2020
Debt
Capital
Special Revenue Funds Service Fund
Projects Fund
Special
Affordable Cultural Revenues / Facility
Capital
Housing Development Donations Lease
Improvement Total
REVENUES:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developer fees
Miscellaneous
Total revenues
EXPENDITURES:
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt Service:
Principal retirement
Interest
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES:
Beginning of year
End of year
$ $ $
$
$
$ 37,055
3,123
2,391,795
509,952
79,494
93,962
5,300,000 529,056
-
354,024
-
6,183,080
- -
723,722
87,603
811,325
5,300,000 529,056
723,722
354,024
87,603
10,109,786
- -
-
19,513
-
19,513
-
166,081
-
-
149,289
2,250
185,532
-
1,183,557
-
-
-
2,464,726
3,146,559
325,995
-
325,995
-
-
186,666
-
186,666
2,250
185,532
532,174
2,464,726
5,177,660
5,297,750 529,056 538,190 (178,150) (2,377,123) 4,932,126
1,249,000 1,249,000
- (140,000)
- - 1,249,000 1,109,000
5,297,750 529,056 538,190 (178,150) (1,128,123) 6,041,126
- - 597,330 1,208,441 5,289,298 13,632,631
$ 5,297,750 $ 529,056 $ 1,135,520 $ 1,030,291 $ 4,161,175 $ 19,673,757
142
Page 259 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - State Gas Tax Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 378,684 $ 378,684
$ 393,523
$ 14,839
Use of money and property
6,120 6,120
607
(5,513)
Total revenues
384,804 384,804
394,130
9,326
EXPENDITURES:
Current:
Public Works
406,681 406,681
149,289
257,392
Capital outlay
- 10,470
-
10,470
Total expenditures
406,681 417,151
149,289
267,862
Net change in fund balances
$ (21,877) $ (32,347)
244,841 $
277,188
FUND BALANCE (DEFICIT):
Beginning of year
(112,127)
End of year
$
132,714
143
Page 260 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Residential Sound Insulation Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES:
Use of money and property
$ 510 $ 510
$ 5,137
$ 4,627
Miscellaneous
- -
-
-
Total revenues
510 510
5,137
4,627
EXPENDITURES:
Current:
Community and cultural
- -
465
(465)
Total expenditures
- -
465
(465)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
510 510
4,672
4,162
OTHER FINANCING SOURCES:
Transfers in
- -
-
-
Total other financing sources
- -
-
-
Net change in fund balances
$ 510 $ 510
4,672
$ 4,162
FUND BALANCE:
Beginning of year
448,955
End of year
$ 453,627
144
Page 261 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Certified Union Program Agencies Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Taxes
$ 9,105
$ 9,105
$ 5,140
$ (3,965)
Licesnes and permits
-
-
3,123
3,123
Charges for services
425,765
425,765
487,882
62,117
Use of money and property
-
-
1,393
1,393
Fines and forfeitures
-
-
61,650
61,650
Total revenues
434,870
434,870
559,188
124,318
EXPENDITURES:
Current:
Community and cultural
641,065
641,065
608,659
32,406
Total expenditures
641,065
641,065
608,659
32,406
Net change in fund balances
$ (206,195)
$ (206,195)
(49,471)
$ 156,724
FUND BALANCE:
Beginning of year
368,555
End of year
$ 319,084
145
Page 262 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Community Development Block Grant Special Revenue Fund
For the Year Ended September 30, 2020
REVENUES:
Integovernmental
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
Net change in fund balances
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 51,000 $ 51,000 $
Variance with
Final Budget
Actual Positive
Amounts (Negative)
99,808 $ 48,808
51,000
51,000
99,808
48,808
152,556
152,556
104,808
47,748
152,556
152,556
104,808
47,748
$ (101,556) $
(101,556) $
(5,000) $
96,556
43,741
$ 38,741
146
Page 263 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Asset Forfeiture Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ - $ - $ 64,248 $ 64,248
Use of money and property - - 4,931 4,931
Total revenues - - 69,179 69,179
EXPENDITURES:
Current:
Public safety
375,500
375,500
166,081
209,419
Capital outlay
370,000
621,977
343,172
278,805
Total expenditures
745,500
997,477
509,253
488,224
Net change in fund balances
$ (745,500) $
(997,477) $
(440,074) $
557,403
FUND BALANCE:
Beginning of year
1,165,301
End of year
$
725,227
147
Page 264 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Prop A Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 325,008 $ 325,008
$ 324,653
$ (355)
Use of money and property
5,100 5,100
7,033
1,933
Total revenues
330,108 330,108
331,686
1,578
EXPENDITURES:
Current:
Community and cultural 390,356 390,356 231,839 158,517
Total expenditures 390,356 390,356 231,839 158,517
Net change in fund balances $ (60,248) $ (60,248) $ 99,847 $ 160,095
FUND BALANCE:
Beginning of year 801,090
End of year $ 900,937
148
Page 265 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Prop C Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 267,174 $ 267,174
$ 268,797
$ 1,623
Use of money and property
6,120 6,120
8,020
1,900
Total revenues
273,294 273,294
276,817
3,523
EXPENDITURES:
Current:
Community and cultural
107,053
107,053
22,634
84,419
Capital outlay
240,000
463,500
159,052
304,448
Total expenditures
347,053
570,553
181,686
388,867
Net change in fund balances
$ (73,759) $
(297,259) $
95,131 $
392,390
FUND BALANCE:
Beginning of year
787,230
End of year
$
882,361
149
Page 266 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Traffic Safety Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Use of money and property
$ 82
$ 82
$ -
$ (82)
Fines and forfeitures
30,600
30,600
32,312
1,712
Total revenues
30,682
30,682
32,312
1,630
OTHER FINANCING SOURCES:
Transfer out
(140,000)
(140,000)
(140,000)
-
Net change in fund balances
$ (109,318)
$ (109,318)
(107,688)
$ 1,630
FUND BALANCE:
Beginning of year 153,976
End of year $ 46,288
150
Page 267 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Air Polluction Reduction Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 15,300 $
15,300
$ 21,492
$ 6,192
Use of money and property
510
510
555
45
Total revenues
15,810
15,810
22,047
6,237
EXPENDITURES:
Capital outlay
63,000
91,666
28,798
62,868
Total expenditures
63,000
91,666
28,798
62,868
Net change in fund balances
$ (47,190) $
(75,856)
$ (6,751)
$ 69,105
FUND BALANCE:
Beginning of year 103,657
End of year $ 96,906
151
Page 268 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - SB 821 Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original Final
Amounts
(Negative)
REVENUES:
Integovernmental
$ 11,071 $
11,071
$ 12,137
$ 1,066
Use of money and property
459
459
405
(54)
Total revenues
11,530
11,530
12,542
1,012
EXPENDITURES:
Capital outlay
50,000
58,137
-
58,137
Total expenditures
50,000
58,137
-
58,137
Net change in fund balances
$ (38,470) $
(46,607)
$ 12,542
$ 59,149
FUND BALANCE:
Beginning of year
46,155
End of year
$ 58,697
152
Page 269 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - C.O.P.S. Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 102,000
$ 102,000
$ 156,727
$ 54,727
Use of money and property
1,530
1,530
2,582
1,052
Total revenues
103,530
103,530
159,309
55,779
EXPENDITURES:
Capital outlay
175,000
175,000
43,471
131,529
Total expenditures
175,000
175,000
43,471
131,529
Net change in fund balances
$ (71,470)
$ (71,470)
$ 115,838
$ 187,308
FUND BALANCE:
Beginning of year 216,636
End of year $ 332,474
153
Page 270 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Measure R Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 200,384
$ 200,384
$ 382,738
$ 182,354
Use of money and property
5,100
5,100
8,065
2,965
Total revenues
205,484
205,484
390,803
185,319
EXPENDITURES:
Capital outlay
563,866
597,218
1,525
595,693
Total expenditures
563,866
597,218
1,525
595,693
Net change in fund balances
$ (358,382)
$ (391,734)
$ 389,278
$ 781,012
FUND BALANCE:
Beginning of year 490,664
End of year $ 879,942
154
Page 271 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Federal Grants Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 233,748
$ 233,748
$ 12,305
$ (221,443)
Total revenues
233,748
233,748
12,305
(221,443)
EXPENDITURES:
Current:
Community and cultural
150,000
373,845
-
373,845
Total expenditures
150,000
373,845
-
373,845
Net change in fund balances
$ 83,748
$ (140,097)
$ 12,305
$ 152,402
FUND BALANCE:
Beginning of year
(58,422)
End of year
$ (46,117)
155
Page 272 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - State Grants Special Revenue Fund
For the Year Ended September 30, 2020
REVENUES:
Intergovernmental
Total revenues
EXPENDITURES:
Current:
Community and cultural
Total expenditures
Net change in fund balances
FUND BALANCE:
Beginning of year
End of year
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
$ 240,000 $ 230,000 $ 135,467 $ (94,533)
240,000 230,000 135,467 (94,533)
40,000
40,000
53,734
(13,734)
40,000
40,000
53,734
(13,734)
$ 200,000 $
190,000 $
81,733 $
(108,267)
19,511
$ 101,244
156
Page 273 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - PSAF Property Tax Public Safety Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Taxes
$ 25,500
$ 25,500
$ 31,915
$ 6,415
Use of money and property
-
-
1,104
1,104
Total revenues
25,500
25,500
33,019
7,519
EXPENDITURES:
Current:
Public safety
100,000
100,000
-
100,000
Total expenditures
100,000
100,000
-
100,000
Net change in fund balances
$ (74,500)
$ (74,500)
$ 33,019
$ 107,519
FUND BALANCE:
Beginning of year
103,664
End of year
$ 136,683
157
Page 274 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Senior Housing Special Revenue Fund
For the Year Ended September 30, 2020
REVENUES:
Use of money and property
Total revenues
EXPENDITURES:
Current:
Community and cultural
Total expenditures
Net change in fund balances
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
$ 2,714 $ 2,714 $
Variance with
Final Budget
Actual Positive
Amounts (Negative)
24,852 $ 22,138
2,714 2,714 24,852 22,138
14,113
14,113
78,444
(64,331)
14,113
14,113
78,444
(64,331)
$ (11,399) $
(11,399) $
(53,592) $
(42,193)
1,033,814
$ 980,222
158
Page 275 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Measure M Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 246,330
$ 246,330
$ 227,495
$ (18,835)
Use of money and property
-
-
6,356
6,356
Total revenues
246,330
246,330
233,851
(12,479)
EXPENDITURES:
Capital outlay
241,500
241,500
-
241,500
Total expenditures
241,500
241,500
-
241,500
Net change in fund balances
$ 4,830
$ 4,830
$ 233,851
$ 229,021
FUND BALANCE:
Beginning of year
506,678
End of year
$ 740,529
159
Page 276 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - SB 1 Special Revenue Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Intergovernmental
$ 127,704
$ 127,704
$ 292,405
$ 164,701
Use of money and property
-
-
5,330
5,330
Total revenues
127,704
127,704
297,735
170,031
EXPENDITURES:
Capital outlay
285,071
285,071
1,007
284,064
Total expenditures
285,071
285,071
1,007
284,064
Net change in fund balances
$ (157,367)
$ (157,367)
$ 296,728
$ 454,095
FUND BALANCE:
Beginning of year 357,497
End of year $ 654,225
160
Page 277 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Facility Lease Debt Service Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Budgeted
Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES:
Developer fees
$ 183,600
$ 183,600
$ 354,024
$ 170,424
Total revenues
183,600
183,600
354,024
170,424
EXPENDITURES:
Current:
General government
30,000
30,000
19,513
10,487
Debt Service:
Principal retirement
320,000
320,000
325,995
(5,995)
Interest
195,000
195,000
186,666
8,334
Total expenditures
545,000
545,000
532,174
12,826
Net change in fund balances
$ (361,400)
$ (361,400)
$ (178,150)
$ 183,250
FUND BALANCE:
Beginning of year
1,208,441
End of year
$ 1,030,291
161
Page 278 of 328
City of El Segundo
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - Capital Improvemets Capital Projects Fund
For the Year Ended September 30, 2020
REVENUES
Miscellaneous
Total revenues
EXPENDITURES:
Capital outlay
Total expenditures
DEFICIENCY OF REVENUES
UNDER EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
Total other financing sources
Net change in fund balances
FUND BALANCE:
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
87,603 $ 87,603
- - 87,603 87,603
2,749,000 7,086,282 2,464,726 4,621,556
2,749,000 7,086,282 2,464,726 4,621,556
(2,749,000) (7,086,282) (2,377,123) (4,533,953)
2,749,000 2,749,000 1,249,000 1,500,000
2,749,000 2,749,000 1,249,000 1,500,000
$ - $ (4,337,282) $ (1,128,123) $ (3,033,953)
5,289,298
$ 4,161,175
162
Page 279 of 328
INTERNAL SERVICE FUNDS
Internal Service Funds:
Equipment Replacement Fund - Accounts for in-house charges to City departments to accumulate funding
for future replacement of equipment used by the departments. The Fund also accounts for the proceeds from
sale of surplus equipment.
Liability Insurance Fund - Accounts for charges to departments for their share of general liability claims and
the administration cost of the self-insurance program.
Workers' Compensation Insurance Fund - Accounts for charges to the departments for their share of
workers' compensation claims and administrative costs of the self-insurance program.
163
Page 280 of 328
City of El Segundo
Combining Statement of Net Position
Internal Service Funds
September 30, 2020
Equipment Liability Workers'
Replacement Insurance Compensation
ASSETS
Current Assets:
Cash and investments
$ 5,085,284
$ 349,408
$ 6,610,242
$ 12,044,934
Accounts receivable
40,000
-
-
40,000
Prepaid items
-
882,106
855,761
1,737,867
Total current assets
5,125,284
1,231,514
7,466,003
13,822,801
Noncurrent assets:
Advance to other funds
5,577,910
-
-
5,577,910
Capital assets, being depreciated
4,476,493
-
4,476,493
Total noncurrent assets
10,054,403
-
-
10,054,403
Total assets
15,179,687
1,231,514
7,466,003
23,877,204
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pension
-
6,715
7,425
14,140
Deferred outflows of resources related to OPEB
-
3,871
3,563
7,434
Total deferred outflows of resources
-
10,586
10,988
21,574
LIABILITIES
Current liabilities:
Accounts payable
100,770
12,043
45
112,858
Accrued liabilities
-
-
36,170
36,170
Claims and judgments, current portion
-
484,157
2,018,024
2,502,181
Total current liabilities
100,770
496,200
2,054,239
2,651,209
Noncurrent liabilities:
Claims and judgments, net of current
-
849,843
9,573,976
10,423,819
Aggregate net pension liability
-
234,830
259,638
494,468
Total other postemployment benefit liability
-
70,423
64,810
135,233
Total noncurrent liabilities
-
1,155,096
9,898,424
11,053,520
Total liabilities
100,770
1,651,296
11,952,663
13,704,729
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions
-
892
986
1,878
Deferred inflows of resources related to OPEB
-
14,975
13,782
28,757
Total deferred inflows of resources
-
15,867
14,768
30,635
NET POSITION (DEFICIT)
Investment in capital assets
4,476,493
-
-
4,476,493
Unrestricted (deficit)
10,602,424
(425,063)
(4,490,440)
5,686,921
Total net position (deficit)
$ 15,078,917
$ (425,063)
$ (4,490,440)
$ 10,163,414
164
Page 281 of 328
City of El Segundo
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30, 2020
Equipment Liability Workers'
Replacement Insurance Compensation
Total
OPERATING REVENUES:
Interdepartmental charges
$ 2,129,441
$ 1,893,779
$ 3,393,938
$ 7,417,158
Miscellaneous
161,833
-
480,706
642,539
Total operating revenues
2,291,274
1,893,779
3,874,644
8,059,697
OPERATING EXPENSES:
Personnel services
-
254,345
262,756
517,101
Materials and supplies
131,785
-
316
132,101
Insurance and claims
-
2,488,549
4,316,271
6,804,820
Depreciation
873,996
-
-
873,996
Total operating expenses
1,005,781
2,742,894
4,579,343
8,328,018
OPERATING INCOME
1,285,493
(849,115)
(704,699)
(268,321)
NONOPERATING EXPENSES:
Loss on disposal of capital assets - - - -
Total nonoperating expenses - - - -
INCOME BEFORE CAPITAL CONTRIBUTIONS 1,285,493 (849,115) (704,699) (268,321)
CAPITAL CONTRIBUTIONS 265,589 - - 265,589
CHANGES IN NET POSITION 1,551,082 (849,115) (704,699) (2,732)
NET POSITION:
Beginning of the year 13,527,835 424,052 (3,785,741) 10,166,146
End of the year $ 15,078,917 $ (425,063) $ (4,490,440) $ 10,163,414
165
Page 282 of 328
City of El Segundo
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from users
Payments for insurance claims
Payments to suppliers
Payments to employees
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Cash paid to other funds
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
Net cash used by capital and related
financing activities
Net increase/(decrease) in cash and cash equivalents
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME
TO NET CASH PROVIDED BY (USED) BY
OPERATING ACTIVITES:
Operating income
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Depreciation
(Increase) decrease in:
Accounts receivable
Prepaid items
Deferred outflows of resources - pension
Deferred outflows of resources - OPEB
Increase (decrease)in:
Accounts payable
Accrued liabilities
Claims and judgments
Net pension liability
Net other postemployment liability
Deferred inflows of resources - pension
Deferred inflows of resources - OPEB
Total adjustments
Net cash provided (used) by operating activities
Non -Cash Investing, Capital, and Financing Activities
Capital assets contributed by other funds
Equipment Liability Workers'
Replacement Insurance Compensation
Fund Fund Fund Total
$ 2,251,274 $ 1,893,779 $ 3,875,213 $ 8,020,266
- (1,736,320) (3,381,271) (5,117,591)
(1,251,740) - (175,392) (1,427,132)
(159,139) (101,110) (260,249)
999,534 (1,680) 217,440 1,215,294
(43,568) - - (43,568)
(43,568) - - (43,568)
(530,736) - - (530,736)
(530,736) - - (530,736)
425,230 (1,680) 217,440 640,990
4,660,054 351,088 6,392,802 11,403,944
$ 5,085,284 $ 349,408 $ 61610,242 $ 12,044,934
$ 1,285,493 $ (849,115) $ (704,699) $ (268,321)
873,996 - - 873,996
(40,000)
-
569
(39,431)
-
57,946
(100,563)
(42,617)
-
(5,463)
(6,535)
(11,998)
-
(1,463)
(1,489)
(2,952)
(1,119,955)
62,544
(262)
(1,057,673)
-
(59,261)
(74,251)
(133,512)
-
691,000
935,000
1,626,000
-
110,378
171,211
281,589
-
(21,862)
(14,688)
(36,550)
-
(1,218)
(514)
(1,732)
-
14,834
13,661
28,495
(285,959)
847,435
922,139
1,483,615
$ 999,534 $
(1,680) $
217,440 $
1,215,294
$ 265,589 $
$
- $
265,589
166
Page 283 of 328
FIDUCIARY FUNDS
Agency Fund:
Project Deposits Fund (Refundable) -Accounts for project deposits from developers which will be refundable
after the projects are done.
167
Page 284 of 328
ASSETS
Cash and investments
Accounts receivable
Total assets
LIABILITIES
Accounts payable
Deposits payable
Total liabilities
City of El Segundo
Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
For the Year Ended September 30, 2020
Balance
October 1, 2019
$ 409,727 $
Additions
338,532 $
617
Balance
Deductions September 30, 2020
(321,896) $ 426,363
617
$ 409,727 $
339,149 $
(321,896) $
426,980
$ 42,599 $
252,735 $
(261,203) $
34,131
367,128
342,738
(317,017)
392,849
$ 409,727 $
595,473 $
(578,220) $
426,980
168
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STATISTICAL SECTION
169
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This page intentionally left blank
170
Page 287 of 328
City of El Segundo
Statistical Section
This part of the City'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 says about the City's overall financial health.
Contents PaEe
Financial Trends 172
These schedules contain trend information to help the reader understand how the
city sfinancial performance and well-being have changed over time.
Revenue Capacity 180
These schedules contain information to help the reader assess the city's most
significant local revenue source, the property tax.
Debt Capacity 185
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 192
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the city sfinancial activities take place.
Operating Information 194
These schedules contain service and infrastructure data to help the reader
understand how the information in the city 'sfinancial report relates to the services
the city provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year The city implemented GASB Statement 34 in 2003; schedules presenting
government -wide information include information beginning in that year
171
Page 288 of 328
CITY OF EL SEGUNDO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2011
2012
2013
2014
2015
Governmental activities:
Invested in capital assets,
net of related debt
94,655,626
92,822,442
94,098,755
93,534,776
90,783,595
Restricted
8,055,325
10,941,373
6,276,645
8,054,083
8,922,448
Unrestricted
22,462,477
14,728,936
15,050,409
22,170,866
(89,732,982)
Total governmental activities net position
125,173,428
118,492,751
115,425,809
123,759,725
9,973,061
Business -type activities:
Invested in capital assets,
net of related debt 21,360,061 21,009,889 20,675,297 21,771,266 22,657,797
Restricted - - - - -
Unrestricted 1,113,161 3,362,263 7,484,917 11,652,989 12,247,482
Total business -type activities net position 22,473,222 24,372,152 28,160,214 33,424,255 34,905,279
Primary government:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total primary government net position
116,015,687 113,832, 331 114,774,052 115,306,042 113,441,392
8,055,325 10,941,373 6,276,645 8,054,083 8,922,448
23,575,638 18,091,199 22,535,326 33,823,855 (77,485,500)
147,646,650 142,864,903 143,586,023 157,183,980 44,878,340
172
Page 289 of 328
CITY OF EL SEGUNDO
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2016
2017
2018
2019
2020
Governmental activities:
Invested in capital assets,
net of related debt
90,014,262
92,615,618
93,775,527
93,823,843
91,747,670
Restricted
8,562,915
7,372,369
7,882,394
11,082,956
21,263,102
Unrestricted
(86,756,004)
(91,119,511)
(129,410,242)
(125,853,873)
(134,246,639)
Total governmental activities net position
11,821,173
8,868,476
(27,752,321)
(20,947,074)
(21,235,867)
Business -type activities:
Invested in capital assets,
net of related debt 25,387,562 27,679,609 30,800,645 31,244,813 30,667,983
Restricted - - - - -
Unrestricted 12,855,184 15,808,634 10,485,483 22,534,785 23,693,166
Total business -type activities net position 38,242,746 43,488,243 41,286,128 53,779,598 54,361,149
Primary government:
Invested in capital assets,
net of related debt 115,401,824 120,295,227 124,576,172 125,068,656 122,415,653
Restricted 8,562,915 7,372,369 7,882,394 11,082,956 21,263,102
Unrestricted (73,900,820) (75,310,877) (118,924,759) (103,319,088) (110,553,473)
Total primary government net position 50,063,919 52,356,719 13,533,807 32,832,524 33,125,282
173
Page 290 of 328
CITY OF EL SEGUNDO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses:
Governmental activities:
General government
Public safety
Public works
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Wastewater
Solid Waste
Golf Course
Total business -type activities expenses
Total primary government expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community development
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenues
Business -type activities:
Charges for services:
Water
Wastewater
Solid Waste
Golf Course
Operating grants and contributions
Capital grants and contributions
Total business -type activities
program revenues
Total primary government
program revenues
4
11,882,856
12,537,230
12,048,465
11,813,797
14,984,299
31,638,027
32,238,620
32,790,373
31,891,478
41,422,188
7,903,942
7,988,435
9,123,850
8,459,550
9,150,452
9,115,175
13,877,815
15,681,868
12,065,582
21,038,253
258,581
16,182
(15,914)
457,655
457,994
60,798,581
66,658,282
69,628,642
64,688,062
87,053,186
19,811,233
22,452,371
21,988,089
23,946,676
25,035,801
2,847,527
2,528,839
2,908,241
2,980,026
3,484,104
2,043,141 1,973,712 2,017,716 2,091,413 2,190,195
24,701,901 26,954,922 26,914,046 29,018,115 30,710,100
85,500,482 93,613,204 96,542,688 93,706,177 117,763,286
457,671
581,718
419,008
421,649
635,350
1,743,941
1,568,107
1,663,384
1,522,081
1,948,464
32,102
15,190
14,262
50,489
267,748
3,941,316
5,081,885
5,030,006
5,796,983
6,733,395
2,101,494
1,508,499
2,699,324
2,629,490
2,052,527
595,807
7,815,458
7,646,118
7,469,236
14,487,783
8,872,331
16,570,857
17,472,102
17,889,928
26,125,267
22,800,787
23,344,919
25,048,713
28,032,902
29,304,012
4,274,392
3,236,359
3,574,272
3,389,450
3,568,042
1,945,415
1,919,435
2,111,937
2,045,652
1,939,165
29,020,594
28,500,713
30,734,922
33,468,004
34,811,219
37,892,925
45,071,570
48,207,024
51,357,932
60,936,486
Net revenues (expenses):
Governmental activities
(51,926,250)
(50,087,425)
(52,156,540)
(46,798,134)
(60,927,919)
Business -type activities
4,318,693
1,545,791
3,820,876
4,449,889
4,101,119
Total net revenues (expenses)
(47,607,557)
(48,541,634)
(48,335,664)
(42,348,245)
(56,826,800)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
7,549,483
7,365,363
7,910,980
8,452,120
8,380,084
Sales tax
11,383,167
10,623,237
9,099,745
10,297,709
11,442,632
Transient occupancy taxes
4,301,696
4,735,585
5,156,080
5,964,403
5,423,972
Othertaxes
18,559,063
18,587,882
25,314,387
28,809,018
27,765,133
Motor vehicle in lieu, unrestricted
73,736
8,754
7,245
6,998
-
Investment income
925,388
393,719
113,173
324,825
331,238
Other general revenues
2,532,872
1,692,208
1,487,988
1,277,597
813,211
Transfers
Total governmental activities
45,325,405
43,406,748
49,089,598
55,132,670
54,156,270
Business -type activities:
Investment income
-
99,690
21,378
152,874
254,662
Other
33,136
63,795
35,600
42,379
19,730
Transfers
Total business -type activities
33,136
163,485
56,978
195,253
274,392
Total primary government
45,358,541
43,570,233
49,146,576
55,327,923
54,430,662
Changes in net position:
Governmental activities
(6,600,845)
(6,680,677)
(3,066,942)
8,334,536
(6,771,649)
Business -type activities
4,351,829
1,709,276
3,877,854
4,645,142
4,375,511
Total primary government
(2,249,016)
(4,971,401)
810,912
12,979,678
(2,396,138)
174
Page 291 of 328
CITY OF EL SEGUNDO
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses:
Governmental activities:
General government
Public safety
Public works
Community development
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Wastewater
Solid Waste
Golf Course
Total business -type activities expenses
Total primary government expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community development
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenues
Business -type activities:
Charges for services:
Water
Wastewater
Solid Waste
Golf Course
Operating grants and contributions
Capital grants and contributions
Total business -type activities
program revenues
Total primary government
program revenues
2020
14,165,449
14,869,930
16,215,039
17,788,600
18,698,011
35,612,565
42,891,455
44,847,122
40,878,258
43,330,009
7,440,438
7,474,391
9,413,340
9,534,893
11,713,451
9,298,275
11,407, 811
10,442,877
11, 321, 339
10,058,912
441,712
361,470
242,750
337,350
324,830
66,958,439
77,005,057
81,161,128
79,860,440
84,125,213
25,454,732
26,508,256
27,907,911
26,525,468
25,014,972
3,517,640
4,048,104
4,164,437
3,336,645
4,978,350
-
-
-
-
248,012
2,136,456
2,017,104
1,990,092
1,674,851
1,553,159
31,108,828
32,573,464
34,062,440
31,536,964
31,794,493
98,067,267
109,578,521
115,223,568
111,397,404
115,919,706
631,274
445,394
371,345
364,486
258,538
1,637,884
1,523,519
2,058,888
1,624,718
1,545,947
11,199
16,643
1,201
-
26,524
5,708,772
6,516,792
6,477,503
7,473,096
5,390,803
1,808,463
1,189,900
1,858,256
4,148,187
2,932,318
2,174,898
1,737,376
1,197,981
2,580,996
7,691,323
11,972,490
11,429, 624
11,965,174
16,191,483
17,845,453
28,281,456
4,090,187
1,828,549
31,626,637
4,275,264
1,604,258
27,779,828
4,348,849
1,650,376
33,824,119
4,475,896
1,643,682
375,000
26,404,788
4,194,630
1,484,846
34,200,192 37,506,159 33,779,053 40,318,697 32,084,264
46,172,682 48,935,783 45,744,227 56,510,180 49,929,717
Net revenues (expenses):
Governmental activities
(54,985,949)
(65,575,433)
(69,195,954)
(63,668,957)
(66,279,760)
Business -type activities
3,091,364
4,932,695
(283,387)
8,781,733
289,771
Total net revenues (expenses)
(51,894,585)
(60,642,738)
(69,479,341)
(54,887,224)
(65,989,989)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
8,884,423
9,093,795
10,444,931
11,138,625
11,816,366
Sales tax
12,089,552
12,201,208
10,636,769
13,023,091
12,006,731
Transient occupancy taxes
7,597,007
12,876,631
13,885,312
14,598,200
8,760,763
Othertaxes
26,730,933
27,021,575
29,498,067
28,391,959
28,059,801
Motor vehicle in lieu, unrestricted
6,859
7,461
-
-
-
Investment income
646,338
532,728
760,598
2,440,102
3,420,790
Other general revenues
1,396,608
889,337
1,954,399
1,682,211
1,926,516
Transfers
Total governmental activities
57,351,720
62,622,735
67,180,076
71,274,188
65,990,967
Business -type activities:
Investment income
222,348
170,178
176,212
1,139,315
291,780
Other
23,755
142,624
16,929
23,926
-
Transfers
Total business -type activities
246,103
312,802
193,141
1,163,241
291,780
Total primary government
57,597,823
62,935,537
67,373,217
72,437,429
66,282,747
Changes in net position:
Governmental activities
2,365,771
(2,952,698)
(2,015,878)
7,605,231
(288,793)
Business -type activities
3,337,467
5,245,497
(90,246)
9,944,974
581,551
Total primary government
5,703,238
2,292,799
(2,106,124)
17,550,205
292,758
175
Page 292 of 328
CITY OF EL SEGUNDO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General fund:
Reserved
Unreserved
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved, reported in:
Special revenue funds
Debt Service funds
Capital projects funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
Fiscal Year
20111 2012 2013 2014 2015
6,421,009
1,884,602
1,873,812
3,380,264
2,575,497
892,810
445,114
2,049,483
2,876,450
3,129,606
5,315,133
7,839,124
12,664,755
14,075,307
14,587,023
12,628,952
10,168,840
16,588,050
20,332,021
20,292,126
-
- 80
5,772 -
6,091,731
5,798,068 4,196,184
7,373,435 5,005,452
4,858,234
3,690,657 1,548,572
1,416,473 5,031,396
(2,091)
(2,752,409) (3,779,255) (1,577,594) (78,071)
10,947,874
6,736,316 1,965,581
7,218,086 9,958,777
Notes:' The City of El Segundo implemented GASB Statement No. 54 during the fiscal year ended September 30, 2011. This
statement eliminated the previous fund balance categories (reserved and unreserved) and replaced them with for new
categories (nonspendable, restricted, assigned, unassigned). Fund balance amounts as of September 30, 2011 are
stated to present the new categories; however, all previous fiscal years are presented using the old categories.
176
Page 293 of 328
CITY OF EL SEGUNDO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General fund:
Reserved
Unreserved
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved, reported in:
Special revenue funds
Debt Service funds
Capital projects funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
Fiscal Year
2016 2017 2018 2019 2020
2,017,346
7,373,109
6,256,640
7,004,769
7,937,643
-
-
1,000,000
2,643,380
4,482,363
2,939,325
3,608,509
2,210,602
2,663,037
2,534,891
17,987,731
17,660,917
24,432,049
26,625,368
20,807,983
22,944,402
28,642,535
33,899,291
38,936,554
35,762,880
-
- -
115,844
85,049
6,963,441
6,312,687 6,882,394
8,404,718
15,473,650
3,301,813
3,159,860 3,231,083
5,289,298
4,161,175
(1,326,041)
(971,152) (333,731)
(177,229) (46,117)
8,939,213
8,501,395 9,779,746
13,632,631
19,673,757
177
Page 294 of 328
CITY OF EL SEGUNDO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developers Fees
Other
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from loans
Capital leases issued
Long-term debt issued
Total other financing
sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Fiscal Year
2011 2012 2013 2014 2015
32,094,475
31,218,273
37,452,888
42,638,899
42,132,274
10,936,873
11,855,052
11,624,026
12,725,503
12,973,204
4,048,295
4,596,724
9,811,864
11,931,067
8,919,841
4,320,364
5,220,234
4,958,310
5,172,579
6,197,552
898,711
452,022
133,291
590,605
615,862
1,201,110
1,050,832
791,650
914,036
903,172
-
-
-
-
432,810
3,349,096
1,826,973
2,074,386
1,877,562
2,960,332
56,848,924
56,220,110
66,846,415
75,850,251
75,135,047
12,456,304
12,575,953
11,724,215
12,677,731
14,523,141
31,359,158
31,291,236
31,145,703
33,576,082
33,694,064
4,991,382
5,126,634
6,300,670
5,676,244
5,574,118
7,748,804
13,190,255
14,451,893
12,277,418
19,523,563
2,040,497
1,607,702
2,015,459
2,133,639
1,021,033
-
-
-
275,092.000
282,987
-
-
-
237,569.000
229,674
58,596,145
63,791,780
65,637,940
66,853,775
74,848,580
(1,747,221) (7,571,670)
1,208,475
8,996,476
286,467
3,167,231
3,163,394
8,455,512
3,048,087
10,138,836
(1,767,231)
(2,263,394)
(8,015,512)
(3,048,087)
(10,338,840)
1,400,000 900,000 440,000 (200,004)
(347,221) (6,671,670) 1,648,475 8,996,476 86,463
0.00% 0.00% 0.00% 0.79% 0.69%
178
Page 295 of 328
CITY OF EL SEGUNDO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Developers Fees
Other
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Community and cultural
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of
revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from loans
Capital leases issued
Long-term debt issued
Total other financing
sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Fiscal Year
2016 2017 2018 2019 2020
43,410,318
49,986,183
53,125,853
55,018,471
47,767,783
13,989,221
13,131,485
13,695,476
14,559,036
14,237,723
7,751,363
2,805,424
2,400,010
3,635,668
2,391,795
5,214,048
5,811,835
6,053,614
6,179,231
4,817,551
682,140
552,662
781,402
2,465,235
3,472,256
1,249,820
444,188
831,067
659,653
367,045
296,427
329,474
262,346
824,075
6,293,956
1,729,917
2,785,946
2,541,114
4,031,022
3,359,551
74,323,254
75,847,197
79,690,882
87,372,391
82,707,660
14,200,855
14,905,246
15,738,556
18,177,843
18,964,880
33,166,579
34,682,695
37,595,758
38,014,581
40,124,678
6,325,541
6,296,743
6,533,963
7,331,278
7,382,491
8,951,898
10,259,037
9,274,383
10,923,487
9,499,235
3,389,585
3,930,500
3,426,202
3,328,392
3,162,263
291,109
299,464
355,461
367,627
380,281
221,552
213,197
244,223
339,035
326,380
66,547,119
70,586,882
73,168,546
78,482,243
79,840,208
7,776,135
5,260,315
6,522,336
8,890,148
2,867,452
2,687,843
2,668,046
3,556,821
4,490,751
1,389,000
(2,887,847)
(2,668,046)
(3,556,821)
(4,490,751)
(1,389,000)
(200,004) - - - -
7,576,131 5,260,315 6,522,336 8,890,148 2,867,452
0.81 % 0.77% 0.86% 0.94% 0.92%
179
Page 296 of 328
CITY OF EL SEGUNDO
Principal Sales Tax Producers
Current Fiscal Year and Nine Years Ago
2019-20
Taxpayer
Business Type
2010-11
Taxpayer
Business Type
Aerospace Corporation
Misc. Vehicle Sales
Accuvant
Office Equipment
Best Buy Stores
Furniture/Appliance
Aerospace Corporation
Misc. Vehicle Sales
Calportland Company
Bldg.Matls-Whsle
Best Buy Stores
Furniture/Appliance
Chevron Service Stations
Service Stations
Chevron Service Stations
Service Stations
Circle K Food Stores
Food Markets
Chevron USA Refinery
Energy Sales
Dick's Sporting Goods
Recreation Products
Computer Sciences Corporation
Office Equipment
En Pointe Technologies Sales
Miscellaneous Other
Dick's Sporting Goods
Apparel Stores
Fleming's Prime Steakhouse
Restaurants
Directv
Leasing
Homegoods
Furniture/Appliance
Karl Storz Endoscopy
Office Equipment
Impex Technologies
Office Equipment
Learned Lumber Supply
Bldg.Matls-Whsle
In-N-Out Burgers
Restaurants
Mobil Service Stations
Service Stations
Insight Direct USA
I.T. Infrastructure
Network Appliance Corporation
Office Equipment
Jim and Jacks
Auto Parts/Repair
Northrop Grumman Systems
Auto Parts/Repair
Karl Storz Endoscopy
Office Equipment
P.F.Changs's China Bistro
Restaurants
Los Angeles Times Communications
Light Industry
Patterson Dental Supply
Light Industry
Meaningful Beauty
Miscellaneous Retail
Primary Color Systems
Light Industry
North
Restaurants
Ralph's Grocery Company
Food Markets
Patterson Dental Supply
Light Industry
Raytheon Company
Electronic Equipment
PCM Gov
Office Equipment
Sensa Products
Miscellaneous Retail
Ralph's Grocery Company
Food Markets
Sun Microsystems
Electronic Equipment
Raytheon Company
Electronic Equipment
The Boeing Company
Misc. Vehicle Sales
The Boeing Company
Misc. Vehicle Sales
Trace 3
Light Industry
The Container Store
Furniture/Appliance
Union 76 Service Stations
Service Stations
Trace 3
Light Industry
Whole Foods Market
Food Markets
Whole Foods Market
Food Markets
World Wide Technology
Office Equipment
Source: Avenu Insights & Analytics
180
Page 297 of 328
CITY OF EL SEGUNDO
Principal Property Tax Payers
Current Year and Nine Years Ago
2019-20 2010-11
Percent of Total City
Percent of Total City
Taxpayer
Taxable Value ($)
Taxable Value (%)
Taxable Value ($)
Taxable Value (%)
Chevron Usa Inc
2,438,217,568
17.19%
2,222,629,945
23.16%
Sof Xi Pct Two Tower Owner Llc
617,569,20C
4.35%
Raytheon Company
503,574,153
3.55%
307,600,15C
3.21%
Aerospace Corporation
312,004,836
2.20%
283,451,637
2.95%
The Boeing Company
205,896,68C
1.45%
Northrop Grumman Systems Corp
198,158,017
1.40%
255,818,371
2.67%
Boeing Co
180,369,627
1.27%
345,116,66C
3.60%
Pes Partners Llc
170,610,488
1.20%
147,763,178
1.54%
2121 Park Place Fee Owner Ca Llc
152,973,133
1.08%
Gateway El Segundo Fee Owner Llc
124,848,000
0.88%
Sfii Flyte Llc
123,628,231
0.87%
Kilroy Realty Finance Ptnshp
122,644,584
0.86%
Rar2 Campus 2100 Llc
119,442,000
0.84%
800 Apollo Fee Owner Ca Llc
119,322,227
0.84%
Street Retail Inc
112,725,742
0.79%
Arcp Ofc El Segundo Ca Lp
105,584,358
0.74%
La4 Llc
91,731,592
0.65%
118,980,071
1.24%
400 Cg Owner Llc
89,043,40C
0.63%
Bsrep li Grand Avenue Llc
88,843,244
0.63%
Hughes Aircraft Co
87,440,721
0.62%
303,089,368
3.16%
He Hornet Way Llc
84,792,60C
0.60%
300 Cg Owner Llc
84,516,22C
0.60%
Plaza Cp Llc
80,672,332
0.57%
69,716,235
0.73%
Bre El Segundo Property Owner B
77,254,902
0.54%
Continental Atrium Corporation
75,972,393
0.54%
282,797,671
2.95%
Kilroy Realty Corporation
167,140,41C
1.74%
Pacific Corp Towers Llc
160,608,395
1.67%
Hines Reit El Segundo Lp
122,109,91C
1.27%
Continental Grand Lp
108,500,000
1.13%
Mattel Inc.
107,855,276
1.12%
Air Liquidelarge Industries U
79,508,519
0.83%
300 N Sepulveda Assoc Llc
65,078,473
0.68%
101 Continental Partners Llc
52,515,547
0.55%
Grand Avenue Parking L P
49,750,000
0.52%
Brcp 2160 Grand Avenue Llc
48,170,528
0.50%
Lax Granada Assoc
41,482,132
0.43%
Intl Rectifier Corp
41,337,074
0.43%
Time Warner NY Cable Llc Time
36,503,185
0.38%
Douglas Property Holdings Co L
35,949,775
0.37%
W2007 Equity Inns Realty Llc
35,308,72C
0.37%
Total Top 25 Taxpayers 6,367,836,248 44.89% 5,488,781,230 57.20%
Total Taxable Value 14,185,553,887 100.00% 9,595,689,307 100.00%
Source: County Assessor data, Avanu Insights & Analytics
Unitary value is included in the total taxbale value.
181
Page 298 of 328
CITY OF EL SEGUNDO
Assessed Value and Estimated Actual Value of Taxable Property'
Last Ten Fiscal Years
Assessed
Factor of
Value as a
Less Tax-
Taxable
Percentag
Fiscal
Residential
Commercial
Industrial
Other Property
Unsecured
Exempt
Taxable Assessed
Total Direct
Estimated Actual
Assessed
a of Actual
Year End
Property
Property
Property
(1)
Property
Property
Value
Tax Rate (2) Taxable Value (3)
Value (3)
Value
2010-11
8,187,752
1,423,531
9,611,283
1.115400
2011-12
8,082,672
1,241,746
9,324,418
1.115400
2012-13
8,278,135
1,423,110
9,701,245
1.115200
2013-14
8,446,568
1,862,068
10,308,636
1.115200
2014-15
8,433,859
1,604,574
10,038,433
1.115200
2015-16
8,919,245
1,736,530
10,655,775
1.115200
2016-17
9,408,029
1,565,767
10,973,796
1.115200
2017-18
2,695,443,946
4,056,923,408
1,526,293,700
2,501,109,520
1,480,982,133
34,490,981
12,226,261,726
1.202225
17,863,020,753
1.461037
68.44%
2018-19
2,901,889,931
4,452,614,029
1,785,769,246
2,418,895,212
1,556,962,904
48,412,749
13,067,718,573
1.205652
22,816,281,059
1.746003
57.27%
2019-20
3,059,827,370
5,145,402,602
2,011,925,385
2,466,641,048
1,552,123,561
50,366,079
14,185,553,887
1.202446
22,800,483,319
1.607303
62.22%
Source: County Assessor data, Avenu Insights & Analytics
Source: 2017 and Prior Published CAFR Reports.
State unitary property of $8,424,647 is included in other property.
1.) Other property for 2016-17 and prior represent the Secured Values.
2.) Total direct tax rate is represented by TRA 09-849.
3.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a
multiplier value was extrapolated and applied to current assessed values.
(-) No data available.
182
Page 299 of 328
CITY OF EL SEGUNDO
Direct and Overlapping Property Tax Rates
(Rate per $100 of taxable value)
Last Ten Fiscal Years
General
COUNTY OF LOS ANGELES
CITY OF EL SEGUNDO
TOTAL
Override Assessments
Metropolitan Water District
County Flood Control
El Segundo Unified School District
Community College
TOTAL
TOTAL TAX RATE
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812
0.063188 0.063188 0.063188 0.063188 0.063188 0.063188 0.063188 0.063188 0.063188 0.063188
1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000
0.003700 0.003700 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500
0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
0.111700 0.111700 0.111700 0.111700 0.111700 0.111700 0.111700 0.177526 0.179923 0.177391
- - - - - - - 0.021199 0.022229 0.021555
0.115400 0.115400 0.115200 0.115200 0.115200 0.115200 0.115200 0.202225 0.205652 0.202446
1.115400 1.115400 1.115200 1.115200 1.115200 1.115200 1.115200 1.202225 1.205652 1.202446
Source: County Auditor/Controller data, Avenu Insights & Analytics
Source: 2017 and prior, previous published CAFR
Tax Rate as represented by TRA 09-849
183
Page 300 of 328
CITY OF EL SEGUNDO
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Taxes Levied
Collections in
Year Ended
forthe
Percent
Subsequent
Percent
June 30
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2010
6,345,073
6,117,416
96.41%
-
6,117,416
96.41%
2011
6,172,420
6,005,643
97.30%
-
6,005,643
97.30%
2012
6,006,864
5,990,455
99.73%
-
5,990,455
99.73%
2013
6,277,523
6,144,309
97.88%
-
6,144,309
97.88%
2014
6,680,795
6,558,427
98.17%
-
6,558,427
98.17%
2015
6,538,375
6,438,118
98.47%
55,500
6,493,618
99.32%
2016
6,728,811
6,637,510
98.64%
59,028
6,696,538
99.52%
2017
6,853,422
6,773,927
98.84%
39,950
6,813,877
99.42%
2018
7,672,612
7,659,388
99.83%
(4,958)
7,654,430
99.76%
2019
8,185,486
8,169,815
99.81%
610,801
8,780,616
107.27%
2020
8,929,004
8,183,987
91.66%
-
8,183,987
91.66%
Source: Los Angeles County Auditor Controller's Office
184
Page 301 of 328
CITY OF EL SEGUNDO
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Thousands, except Per Capita)
Outstanding General Bonded Debt
Fiscal Year
General Tax
Percent of
Ended 1
Obligation Allocation Certificates of
Assessed Per
September 30
Bonds Bonds Participation Total
Value Z Capita
2011
- - - -
0.000%
2012
- - - -
0.000%
2013
- - - -
0.000% -
2014
- - - -
0.000% -
2015
- - - -
0.000% -
2016
- - - -
0.000%
2017
- - - -
0.000%
2018
- - - -
0.000%
2019
- - - -
0.000%
2020
- - - -
0.000%
General bonded debt is debt payable with governmental fund resources and general
obligation bonds recorded in enterprise funds (of which, the City has none).
1 Fiscal Years 2000 - current are 12 month reporting periods ending on September 30.
Z Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
185
Page 302 of 328
CITY OF EL SEGUNDO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year General
Tax
Total
Ended Obligation
Allocation Certificates of Leases/
Governmental
September 30 Bonds
Bonds Participation Loans
Activities
2011 -
- - 11,208,191
11,208,191
2012 -
- - 10,916,677
10,916,677
2013 -
- - 10,615,488
10,615,488
2014 -
- - 10,303,635
10,303,635
2015 -
- - 9,982,592
9,982,592
2016 -
- - 9,650,093
9,650,093
2017 -
- - 9,306,335
9,306,335
2018 -
- - 8,950,875
8,950,875
2019 -
- - 8,583,247
8,583,247
2020 -
- - 8,202,967
8,202,967
Note: Details regarding the City's outstanding debt can be found in the notes to
the financial statements.
1 Office of Economic Development (data shown is for Los Angeles County)
186
Page 303 of 328
CITY OF EL SEGUNDO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
Ended
September 30
Business -type Activities
Total
Leases/ Certificates of Business -type
Loans Participation Activities
Total
Primary
Government
Percentage
of Personal
Income 1
Debt
Per
Capita
2011
285,586 285,586
11,493,777
1.6%
280
2012
- - -
10,916,677
1.5%
254
2013
- - -
10,615,488
1.4%
239
2014
- - -
10,303,635
1.4%
227
2015
- - -
9,982,592
1.3%
214
2016
- - -
9,650,093
1.2%
203
2017
- - -
9,306,335
1.1%
187
2018
- - -
8,950,875
1.0%
169
2019
- - -
8,583,247
0.9%
154
2020
- - -
8,202,967
0.8%
141
Note: Details regarding the City's outstanding debt can be found in the notes to
the financial statements.
1 Office of Economic Development (data shown is for Los Angeles County)
187
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Page 305 of 328
CITY OF EL SEGUNDO
Direct and Overlapping Debt
September 30, 2020
2019-20 City Assessed Valuation:
$14,200,895,087
Percentage Total
Applicable' Debt 9/30/20
DIRECT DEBT:
City of El Segundo: Capital Lease - 2003 Parking Structure Lease 100.000 % $ 2,024,903 $
City of El Segundo: Facility Lease Obligation - 2005 Douglas Street Gap Closure 100.000 % 6,178,064
TOTAL DIRECT DEBT $ 8,202,967 $
OVERLAPPING DEBT:
Metropolitan Water District
0.459 % $
El Camino Community College District
11.896 %
El Segundo Unified School District
100.000 %
Manhattan Beach Unified School District
0.002 %
Wisebum School District
72.528 %
Centinela Valley Union High School District
34.656 %
Centinela Valley Union High School District School Facilities Improvement District No. 20U
38.999 %
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$
DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT:
Estimated
Share of
Direct and
Overlapping
Exclusions Debt
$ 2,024,903
6,178,064
32,230,000
$ 32,082,064
$ 147,936
388,425,306
342,218,232
46,207,074
84,955,859
-
84,955,859
193,766,414
193,762,539
3,875
115,767,787
31,803,726
83,964,061
229,200,955
1— ... (tn(1
149,769,072
111—A7C
79,431,883
---A
Los Angeles County General Fund Obligations 0.880% $ 2,303,502,723 $ 2,283,231,899 $ 20,270,824
Los Angeles County Superintendent of Schools COP'S 0.880% 4,565,373 4,525,198 40,175
L.A.County Sanitation District No. 5 Authority 6.349% 9,233,499 8,647,264 586,235
L.A.County Sanitation District South Bay Cities Authority 0.042% 1,573,880 1,573,219 661
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT
Net Combined Total Debt
$ 2,318,875,475 $ 2,297,977,580 $ 20,897,895
$ 3,553,989,763 $ 3,158,979,689 $ 395,010,074 (2)
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining
the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. Also excludes accreted value of
capital appreciation bonds.
Ratios to Assessed Valuation:
Total Overlapping Tax and Assessment Debt ........ 2.58%
Total Direct Debt...........................................0.00%
Net Combined Total Debt..................................2.72%
Source: Avenu Insights & Analytics
189
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CITY OF EL SEGUNDO
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
Fiscal Year
2010-11 2011-12 2012-13 2013-14 2014-15
$ 9,611,283,541 $ 9,324,417,663 $ 9,701,244,855 $ 10,308,636,196 $ 10,038,433,763
25%
25%
25%
25%
25%
2,402,820,885
2,331,104,416
2,425,311,214
2,577,159,049
2,509,608,441
15%
15%
15%
15%
15%
360,423,133
349,665,662.36
363,796,682
386,573,857
376,441,266.11
$ 360,423,133 $
349,665,662 $
363,796,682 $
386,573,857 $
376,441,266
0.0%
0.0%
0.0%
0.0%
0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross
assessed valuation. However, this provision was enacted when assessed valuation was
based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel
is now assessed at 100% of market value (as of the most recent change in ownership
for that parcel). Although the statutory debt limit has not been amended by the State since this
change, the percentages presented in the above computations have been proportionately
modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent
with the computational effect of the debt limit at the time of the state's establishment of the limit.
Source: California Municipal Statistics, Inc.
Los Angeles County Tax Assessor's Office
190
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CITY OF EL SEGUNDO
Legal Debt Margin Information
Last Ten Fiscal Years
Assessed valuation
Conversion percentage
Assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
Total debt applicable to the limit
as a percentage of debt limit
Fiscal Year
2015-16 2016-17 2017-18 2018-19 2019-20
$ 10,655,775,000 $ 10,973,796,359 $ 12,226,261,726 $ 13,067,718,573 $ 14,185,553,887
25%
25%
25%
25%
25%
2,663,943,750
2,743,449,090
3,056,565,432
3,266,929,643
3,546,388,472
15%
15%
15%
15%
15%
399,591,563
411,517,363
458,484,815
490,039,446
531,958,270.76
$ 399,591,563 $
411,517,363 $
458,484,815 $
490,039,446 $
531,958,271
0.0%
0.0%
0.0%
0.0%
0.0%
191
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CITY OF EL SEGUNDO
Demographic and Economic Statistics
Last Ten Calendar Years
Fiscal Year
City Population (1)
Personal Income
(in thousands) (2)
Per Capita
Personal Income (2)
Median Age (3)
Unemployment
Rate (%) (4)
2010-11
17,049
700,936
41,113
-
12.6%
2011-12
16,708
717,659
42,953
-
12.3%
2012-13
16,720
743,605
44,474
-
11.0%
2013-14
16,815
761,888
45,310
-
9.9%
2014-15
16,897
787,958
46,633
-
8.2%
2015-16
16,646
790,452
47,486
38.9
3.7%
2016-17
16,717
832,029
49,771
38.9
2.9%
2017-18
16,784
888,503
52,938
39.0
3.3%
2018-19
17,066
952,927
55,838
38.7
3.2%
2019-20
16,777
974,307
58,074
38.7
23.5%
Source: Avenu Insights & Analytics
Source: 2014 and prior, previously published CAFR Report
The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark.
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey.
3.) Median Age is provided by US Census data.
4.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
192
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CITY OF EL SEGUNDO
Principal Employers
Current Year and Nine Years Ago
2019-20
2009-10
Number of
Percent of Total
Number of
Business Name
Employees
Employment (%)
Employees
Boeing Satellite Systems*
13,441
149.34%
5,167
Raytheon Space & Airborne Syst
6,000
66.67%
7,268
Aerospace Corporation
3,400
37.78%
3,002
Northrop Grumman Corporation (1)
2,539
28.21%
5,219
Mattel Inc
1,545
17.17%
1,635
Chevron Products Company/USA inc
1,252
13.91%
1,179
Internet Brands Inc
582
6.47%
-
Karl Storz Endoscopy America Inc
447
4.97%
Infineon Technologies Americas Corp (formerly International Rectifier)
423
4.70%
-
Big 5 Sporting Goods**
289
3.21%
DirecTV Operations Inc
-
0.00%
1,866
Accenture (2)
0.00%
713
Rhythm & Hues
0.00%
703
International Rectifier Corporation
0.00%
537
Total Top 10 Employers 29,918 332.43% 27,289
Total City Labor Force (3) 9,000
Source: Avenu Insights & Analytics
2010-11 based on previously published CAFR
Results based on direct correspondence with city's local businesses.
*Employee Count is statewide, employment levels are not available by site.
** Includes Corporate office and retail store.
(1) Accenture no longer has office space in El Segundo.
(2) Total City Labor Force provided by EDD Labor Force Data.
193
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CITY OF EL SEGUNDO
Full-time and Part-time City Employees By Function
Last Ten' Fiscal Years
Full-time and Part-time Employees as of September 30
Fiscal Year
2011
2012 2013 2014
2015
Function
General Government
51
51 52 60
69
Public Safety
157
150 153 138
137
Public Works
18
17 18 27
30
Community & Cultural
81
83 77 81
80
Water
11
9 9 11
11
Sewer
5
6 5 6
6
Total
323
316 314 323
333
Source: City of El Segundo Payroll Division
194
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CITY OF EL SEGUNDO
Full-time and Part-time City Employees By Function
Last Ten' Fiscal Years
Full-time and Part-time Employees as of September 30
Fiscal Year
2016
2017 2018 2019
2020
Function
General Government
51
57 53 71
73
Public Safety
123
126 130 143
144
Public Works
31
30 29 26
40
Community & Cultural
76
74 115 106
93
Water
10
10 9 18
15
Sewer
6
10 6 6
7
Total
297
307 342 370
372
195
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CITY OF CITY OF EL SEGUNDO
Operating Indicators by Function
Last Ten Fiscal Years
Police:
Arrests
Parking citations issued
Fire:
Number of emergency calls
Inspections
Medical Responses
Public Works:
Street resurfacing (miles)
Reconstruction (miles)
New Street (miles)
Electronic Recycling (pounds)
Paper Shred Recycling (pounds)
Parks and recreation:
Number of recreation classes
Class registrations
Recreation Trips participants
Number of facility rentals
Number of Reservations
Shuttles transported (riders)
Dial -A -Ride residents
Homebound Meals
Finance:
Business Licenses processed:
Purchase Orders processed
Purchase Change Orders processed
Invoices processed
Checks processed
Cash Receipts processed (excluding Water)
Source: City of El Segundo
Fiscal Year
2011 2012 2013 2014 2015
810
826
795
1,468
1,057
7,792
8,698
10,900
11,764
9,404
2,314
2,403
2,208
2,485
2,568
1,985
2,445
2,411
2,326
2,203
1,533
1,547
1,441
1,564
1,644
0.83
-
1.87
-
-
N/A
N/A
N/A
N/A
N/A
N/A
N/A
17,950
9,220
10,080
1,362
1,228
1,191
1,365
1,389
8,809
8,026
7,950
7,905
8,021
840
1,185
1,480
1,560
1,535
262
365
411
496
-
9,969
9,971
9,041
9,238
9,342
33,990
30,976
27,472
29,789
30,052
7,693
9,085
11,258
11,090
11,206
5,935
5,794
5,007
4,957
4,926
6,917
7,024
6,686
6,758
5,812
159
341
428
447
427
21
74
139
129
118
10,772
9,855
10,008
10,367
10,189
5,068
5,010
5,262
5,529
5,326
36,665
36,432
34,120
35,461
35,143
196
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CITY OF CITY OF EL SEGUNDO
Operating Indicators by Function
Last Ten Fiscal Years
Police:
Arrests
Parking citations issued
Fire:
Number of emergency calls
Inspections
Medical Responses
Public Works:
Street resurfacing (miles)
Reconstruction (miles)
New Street (miles)
Electronic Recycling (pounds)
Paper Shred Recycling (pounds)
Parks and recreation:
Number of recreation classes
Class registrations
Recreation Trips participants
Number of facility rentals
Number of Reservations
Shuttles transported (riders)
Dial -A -Ride residents
Homebound Meals
Finance:
Business Licenses processed:
Purchase Orders processed
Purchase Change Orders processed
Invoices processed
Checks processed
Cash Receipts processed (excluding Water)
Source: City of El Segundo
Fiscal Year
2016 2017 2018 2019 2020
721
592
568
953
1,009
7,200
8,955
10,227
12,247
9,537
2,632
2,807
2,895
893
2,558
1,531
1,209
1,919
905
512
1,661
1,847
1,930
502
1,621
0.3
1
2
5.5
0.5
N/A
N/A
-
1,480
1,480
23,000
23,000
20,000
15,400
17,340
1,056
833
997
1,019
980
6,657
6,615
7,574
4,098
5,387
89
20
926
1,784
762
4,779
5,624
5,397
5,563
23,841
7,320
4,781
6,252
5,532
1,968
6,841
5,108
5,189
4,474
2,194
5,061
5,497
6,080
6,840
7,285
7,172
7,236
6,610
6,992
6,391
476
547
464
416
411
103
136
174
141
167
10,230
9,566
9,762
6,805
10,501
5,849
5,248
5,258
3,790
5,611
33,075
31,559
27,722
54,264
37,273
197
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CITY OF EL SEGUNDO
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2011
2012
2013
2014
2015
Police:
Stations
1
1
1
1
1
Fire:
Fire stations
2
2
2
2
2
Public works:
Streets (miles)
55
55
55
55
55
Streetlights
1,718
1,718
1,718
1,718
1,718
Traffic signals
55
55
55
55
55
Parks and recreation:
Parks
22
22
22
22
22
Recreation Facilities
13
13
13
13
13
Number of Acres
91
91
91
91
91
Source: City of El Segundo
198
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CITY OF EL SEGUNDO
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2016
2017
2018
2019
2020
Police:
Stations
1
1
1
1
1
Fire:
Fire stations
2
2
2
2
2
Public works:
Streets (miles)
55
55
55
55
55
Streetlights
1,718
1,718
1,718
1,718
1,718
Traffic signals
55
55
55
55
55
Parks and recreation:
Parks
22
22
22
22
22
Recreation Facilities
13
13
14
14
14
Number of Acres
91
91
91
91
91
199
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CITY OF EL SEGUNDO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
WITH INDEPENDENT ACCOUNTANTS' REPORT
ON AGREED -UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET NO.6
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Page 318 of 328
0
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT ACCOUNTANTS' REPORT ON
AGREED -UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
Honorable Mayor and
Members of the Governing Council
of the City of El Segundo
El Segundo, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet No. 6 (the worksheet) of the City of El Segundo, California (the City) for the year ended
September 30, 2020. These procedures, which were agreed to by the City of El Segundo, California
and the League of California Cities (as presented in the League publication entitled "Article XIII-B
Appropriations Limit Uniform Guidelines") were performed solely to assist the City of El Segundo,
California in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution.
The City of El Segundo's management is responsible for the Appropriations Limit Worksheet No. 6.
The sufficiency of the procedures is solely the responsibility of those parties specified in this report.
Consequently, we make no representation regarding the sufficiency of the procedures described below
either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended
September 30, 2020, and compared the limit and annual adjustment factors included in the
worksheet to the limit and annual adjustment factors that were adopted by resolution of the City
Council. We also compared the population and inflation options included in the worksheet to those
that were selected by a recorded vote of the City Council.
No exceptions were noted as a result of our performing this procedure.
2. For the accompanying Appropriations Limit Worksheet No. 6, we added last year's limit to the
total adjustments, and compared the resulting amount to this year's limit.
No exceptions were noted as a result of our performing this procedure.
3. We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the
prior year.
No exceptions were noted as a result of our performing this procedure.
OA member of
Nexia
International
Page 319 of 328
This agreed -upon procedures engagement was conducted in accordance with attestation standards
established by the America Institute of Certified Public Accountants. We were not engaged to, and did
not, conduct an examination or review, the objective of which would be the expression of an opinion or
conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we
do not express such an opinion or conclusion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you. No procedures have been
performed with respect to the determination of the appropriation limit for the base year, as defined by
the League publication entitled "Article XIIIB Appropriations Limitation Uniform Guidelines."
This report is intended solely for the use of the City Council and management of the City and is not
intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Irvine, California
March 29, 2021
2
Page 320 of 328
CITY OF EL SEGUNDO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended September 30, 2020
Appropriations limit for fiscal year ended September 30, 2019 (see Note 2)
Adjustment factors for the fiscal year ended September 30, 2020 (see Note 2):
Inflation
Factor
(Note 3)
Population
Factor
(Note 4)
Combined
Factor
$ 313,004,318
1.0385 0.9999 1.0384 x 0.0384
Adjustment for inflation and population 12,019,366
Other adjustments (Note 5) -
Total adjustments 12,019,366
Appropriations limit for fiscal year ended September 30, 2020 325,023.684
See accompanying notes to Appropriations Limit Worksheet No. 6.
3
Page 321 of 328
CITY OF EL SEGUNDO
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
For the year ended September 30, 2020
1. PURPOSE OF LIMITED PROCEDURES REVIEW:
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative),
California governmental agencies are restricted as to the amount of annual appropriations from
proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of
Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures
review in connection with the annual audit.
2. METHOD OF CALCULATION:
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the
appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87,
adjusted for the inflation and population factors discussed at Notes 3 and 4 below.
3. INFLATION FACTORS:
A California governmental agency may adjust its appropriations limit by either the annual
percentage change in the 0 quarter per capita personal income (which percentages are supplied by
the State Department of Finance), or the percentage change in the local assessment roll from the
preceding year due to the change of local nonresidential construction. The factor utilized by the
City of El Segundo for the fiscal year 2019-2020 represents the annual percentage change in the 4ch
quarter per capita personal income.
4. POPULATION FACTORS:
A California governmental agency may adjust its appropriations limit by either the annual
percentage change of the jurisdiction's own population, or the annual percentage change in
population in the County where the jurisdiction is located. The factor utilized by the City of El
Segundo for fiscal year 2019-2020 represents the annual percentage change in the population for
the County where the jurisdiction is located.
5. OTHER ADJUSTMENTS:
A California governmental agency may be required to adjust its appropriations limit when certain
events occur, such as the transfer of responsibility for municipal services to, or from, another
governmental agency or private entity. The City of El Segundo had no such adjustments for the
year ended September 30, 2020.
4
Page 322 of 328
{:ICVoy
ELSEGUNDO City Council Agenda Statement
Meeting Date: May 4, 2021
Agenda Heading: STAFF PRESENTATIONS
TITLE:
Development Services Director Salary Range Adjustment
RECOMMENDATION:
Adopt proposed resolution to establish a modified salary range for the Development
Services Director classification.
FISCAL IMPACT:
The proposed salary range is 10% greater than the current salary range. With the
retirement of the current Development Services Director, the fiscal impact of the revised
salary range will depend on the actual salary of the replacement Director, which will not
be known until after the recruitment is concluded in two to three months. The proposed
FY 2021-2022 General Fund Budget which will be submitted to City Council on June 15
will include sufficient funding for this position. The potential salary cost increase of this
position (if any) will be offset by the start date of the selected individual. The intent is to
ensure that the salary range adjustment remains revenue and expenditure neutral.
BACKGROUND:
With the pending vacancy of the Development Services Director position, the City has
had the opportunity to reevaluate the established salary range and executive
recruitment strategy for attracting the most qualified candidates. In alignment with the
City's Strategic Plan Goal 1: "Enhance Customer Service Engagement and
Communication; Embrace Diversity Equity, and Inclusion," the Development Services
Department strives to provide unparalleled service to internal and external customers.
Additionally, the Human Resources Department is committed to Strategic Plan Goal 3:
"Develop as a Choice Employer and Workforce, creating a culture of consistently hiring
for the future, with a workplace that is inspired, world -class, engaged and demonstrating
increasing stability and innovation."
To ensure that the organization and community are well -positioned to attract a high
Page 323 of 328
Development Services Director Salary Range Adjustm
May 4, 2021
Page 2 of 4
caliber candidate necessary to best meet the needs of the City, staff conducted a salary
and benefits survey of comparable positions among our survey cities. The results
revealed that this position is below market in salary and benefits and that at a minimum,
an adjustment to salary range is needed to attract a competitive candidate pool.
DISCUSSION:
Need to attract a highly experienced Development Services Director
Given that El Segundo is the economic engine of the South Bay with a local economy
with more companies and workers than any other South Bay city, our organization
needs an experienced and seasoned land -use professional to hit the ground running on
day one. This position requires a knowledgeable and proven planning expert to lead
the operations and activities of a comprehensive full -service Development Services
Department. This individual will need to be a personable and politically astute leader
with a firm commitment to providing exceptional customer service, staff development,
and community responsiveness. The ability to develop and manage staff, while
overseeing an intense workload, is critical.
The selected individual will need to possess an in-depth technical knowledge, skills and
experience in planning, building, code enforcement, and affordable housing disciplines
with the ability to build strong relationships and foster a culture based on proactive and
timely customer service, allowing the organization to establish higher levels of credibility
in its work product. Additionally, the Development Services Director must be able to
prioritize and complete a broad range of projects with competing deadlines and
effectively manage personnel and resources.
The level land -use development projects currently under construction, approved to be
constructed, and in the queue to be developed are at levels that require a proven leader
in this field. The successful individual will be well -qualified and experienced in
developing specific plans, redeveloping a downtown, producing affordable housing in
compliance with RHNA requirements, building mixed -used developments, costal
development, airport interface, and working with world -class private corporations and
business leaders. The selected candidate will play a key role in growing the City's
economic base and future revenue streams to support the City's overall public service
mission to residents.
As a result, the salary range needs to be adjusted to attract a world -class Development
Services Director.
Proposed Salary Range Adjustment
With a proposed adjustment of 10% from $13,415 to $16,098 per month to $13,581 to
$17,700, this will bring the salary range in line with our comparable cities and equal the
current range used by our neighboring City of Manhattan Beach.
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Development Services Director Salary Range Adjustm
May 4, 2021
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While Manhattan Beach has a larger residential population (approximately 35,900
versus approximately 16,650), El Segundo has a much larger number of businesses
and a significantly greater workforce population (approximately 73,950 versus
approximately 17,900). From an equity and market fairness perspective, the salary
range for this position should be at least the same in both cities, if not higher for El
Segundo.
Benefits
The proposed salary range adjustment does not include any changes to employee
benefits (such as retirement formulas, medical insurance, dental insurance, deferred
compensation, automobile allowance, etc.). The benefits package is below market,
including that of Manhattan Beach executives. El Segundo executive benefits are lower
in some categories than El Segundo City employee groups receive. This issue will
need to be addressed at a later date, as part of a future review of the overall
Department Head (Executive Team) salary and benefits package.
Additional Information
As a reminder, earlier in this fiscal year, the City did a reorganization which reduced the
number of department heads from nine to eight with the merger of the Library and
Recreation and Parks Department into the Community Services Department. There are
recurring cost savings from the merger of the two previous department head positions
(Library Director and Recreation and Parks Director) into one department head position
(Community Services Director). Staff will continue to pursue additional organizational
efficiencies going forward.
NEXT STEPS:
If adopted by City Council, the resolution will go into effect right away and apply to the
next Development Services Director after he/she is hired in the next few months.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Engagement, and Communication; Embrace
Diversity, Equity, and Inclusion
Objective 1A: El Segundo Provides unparalleled service to internal and external
customers.
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Development Services Director Salary Range Adjustm
May 4, 2021
Page 4 of 4
Goal 3: Develop as a Choice Employer and Workforce
Objective: El Segundo is city employer of choice and consistently hires for the future,
with a workforce that is inspired, world -class and engaged, demonstrating increasing
stability and innovation.
PREPARED BY:
Rebecca Redyk, Human Resources Director
APPROVED BY:
Barbara Voss, Deputy City Manager
ATTACHED SUPPORTING DOCUMENTS:
Resolution Establishing Salary Range
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RESOLUTION NO.
A RESOLUTION ESTABLISHING BASIC MONTHLY SALARY RANGE
FOR A FULL TIME JOB CLASSIFICATION
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council approves the following basic monthly salary range:
Classification
Monthly Range
Development Services Director $13,581-$17,700
SECTION 2: Authority. The City Manager or his designee is authorized to take any steps
necessary in order to effectuate this Resolution.
SECTION 3: Construction. This Resolution must be broadly construed in order to achieve
the purposes stated in this Resolution. It is the City Council's intent that the provisions of
this Ordinance be interpreted or implemented by the City and others in a manner that
facilitates the purposes set forth in this Resolution.
SECTION 4: Severability. If any part of this Resolution or its application is deemed invalid
by a court of competent jurisdiction, the City Council intends that such invalidity will not
affect the effectiveness of the remaining provisions or applications and, to this end, the
provisions of this Ordinance are severable.
SECTION 5: The City Clerk is directed to certify the adoption of this Resolution; record
this Resolution in the book of the City's original resolutions and make a minute of this
adoption of the Resolution in the City Council's records and the minutes of this meeting.
SECTION 6: This Resolution is effective May 4, 2021 and will remain effective unless
repealed or superseded.
PASSED AND ADOPTED this 4th day of May, 2021.
Drew Boyles,
Mayor
ATTEST:
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. was duly passed and adopted by said City Council, approved and
signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said
Council held on the day of , 2021, and the same was so passed and adopted
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Tracy Weaver, City Clerk
U1 Z!W:10 ►Tl21R7_wto] 7i]VJ A
Mark D. Hensley, City Attorney
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