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2025-03-04 CC Item D11 - Annual Comprehesive Report - June 30, 2024t may. s' -.'•+' .Y: 1 ?'Tint CITY OF EL SEGUNDO, CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED JUNE 30, 2024 PREPARED BY THE CITY'S FINANCE DEPARTMENT This page intentionally left blank CITY OF EL SEGUNDO TABLE OF CONTENTS YEAR ENDED J U N E 30, 2024 INTRODUCTORY SECTION (UNAUDITED) LETTER OF TRANSMITTAL I ORGANIZATIONAL CHART VI OFFICIALS OF THE CITY VII GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD VIII FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 5 FINANCIAL STATEMENTS GOVERNMENT -WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION 20 STATEMENT OF ACTIVITIES 22 FUND FINANCIAL STATEMENTS GOVERNMENTAL FUND FINANCIAL STATEMENTS BALANCE SHEET 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 GOVERNMENT 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 STATEMENT OF NET POSITION 34 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION 38 STATEMENT OF CASH FLOWS 40 NOTES TO FINANCIAL STATEMENTS 47 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) BUDGETARY COMPARISON SCHEDULE - GENERAL FUND 102 NOTE TO BUDGETARY COMPARISON SCHEDULE 103 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - CALPERS MISCELLANEOUS RATE PLAN 104 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - CALPERS SAFETY RATE PLAN 106 CITY OF EL SEGUNDO TABLE OF CONTENTS (CONTINUED) YEAR ENDED J U N E 30, 2024 SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS - CALPERS SAFETY RATE PLAN 107 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - PUBLIC AGENCY RETIREMENT SYSTEM DEFINED BENEFIT PLAN 109 SCHEDULE OF CONTRIBUTIONS - CALPERS MISCELLANEOUS RATE PLAN 111 SCHEDULE OF CONTRIBUTIONS - CALPERS SAFETY RATE PLAN 113 SCHEDULE OF CONTRIBUTIONS - PUBLIC AGENCY RETIREMENT SYSTEM DEFINED BENEFIT PLAN 115 SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 117 SCHEDULE OF CONTRIBUTIONS - OPEB PLAN 120 SUPPLEMENTARY INFORMATION GENERAL FUND COMPONENTS COMBINING SCHEDULE OF BALANCE SHEET 124 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 126 NONMAJOR GOVERNMENTAL FUNDS COMBINING SCHEDULE OF BALANCE SHEET 132 COMBINING SCHEDULE 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 144 RESIDENTIAL SOUND INSULATION SPECIAL REVENUE FUND 145 CERTIFIED UNION PROGRAM AGENCIES SPECIAL REVENUE FUND 146 COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND 147 ASSET FORFEITURE SPECIAL REVENUE FUND 148 PROP A SPECIAL REVENUE FUND 149 PROP C SPECIAL REVENUE FUND 150 TRAFFIC SAFETY SPECIAL REVENUE FUND 151 AIR POLLUTION REDUCTION SPECIAL REVENUE FUND 152 SB 821 SPECIAL REVENUE FUND 153 CITY OF EL SEGUNDO TABLE OF CONTENTS (CONTINUED) YEAR ENDED J U N E 30, 2024 C.O.P.S. SPECIAL REVENUE FUND 154 MTA GRANT SPECIAL REVENUE FUND 155 MEASURE R SPECIAL REVENUE FUND 156 FEDERAL GRANTS SPECIAL REVENUE FUND 157 STATE GRANTS SPECIAL REVENUE FUND 158 PSAF PROPERTY TAX PUBLIC SAFETY SPECIAL REVENUE FUND 159 SENIOR HOUSING SPECIAL REVENUE FUND 160 MEASURE M SPECIAL REVENUE FUND 161 SB 1 SPECIAL REVENUE FUND 162 CERTIFIED ACCESS SPECIALIST PROGRAM SPECIAL REVENUE FUND 163 AFFORDABLE HOUSING SPECIAL REVENUE FUND 164 CULTURAL DEVELOPMENT SPECIAL REVENUE FUND 165 SPECIAL REVENUES AND DONATIONS SPECIAL REVENUE FUND 166 COUNTY STORM WATER PROGRAM SPECIAL REVENUE FUND 167 MEASURE B SPECIAL REVENUE FUND 168 FACILITY LOAN DEBT REVENUE FUND 169 PENSION OBLIGATION BONDS DEBT SERVICE FUND 170 DEVELOPMENT IMPACT FEE CAPITAL PROJECTS FUND 171 CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND 172 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION 174 COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION 175 COMBINING STATEMENT OF CASH FLOWS 176 STATISTICAL SECTION (UNAUDITED) DESCRIPTION OF STATISTICAL SECTION CONTENTS 179 FINANCIAL TRENDS NET POSITION BY COMPONENT 180 CHANGES IN NET POSITION 182 FUND BALANCES OF GOVERNMENTAL FUNDS 184 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 186 REVENUE CAPACITY PRINCIPAL SALES TAX PRODUCERS 188 CITY OF EL SEGUNDO TABLE OF CONTENTS (CONTINUED) YEAR ENDED J U N E 30, 2024 PRINCIPAL PROPERTY TAXPAYERS 189 ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 190 DIRECT AND OVERLAPPING PROPERTY TAX RATES 191 PROPERTY TAX LEVIES AND COLLECTIONS 192 DEBT CAPACITY RATIO OF GENERAL BONDED DEBT OUTSTANDING 193 RATIO OF OUTSTANDING DEBT BY TYPE 194 DIRECT AND OVERLAPPING BONDED DEBT 197 LEGAL DEBT MARGIN INFORMATION 198 DEMOGRAPHIC AND ECONOMIC INFORMATION DEMOGRAPHIC AND ECONOMIC STATISTICS 200 PRINCIPAL EMPLOYERS 201 OPERATING INFORMATION OPERATING INDICATORS BY FUNCTION 202 FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION 204 CAPITAL ASSET STATISTICS BY FUNCTION 206 Y 0 rA January 21, 2025 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 June 30, 2024. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework 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 ("DE), an Independent CPA Firm, has issued an unmodified ("clean") opinion on the City of El Segundo's financial statements for the year ending June 30, 2024. 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 providers, providing opportunities to diversify and enhance the revenue source of the City. 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 108 years, El Segundo has become a thriving business center, home to AT&T, Los Angeles Times, Los Angeles Lakers, Los Angeles Kings, Los Angeles Chargers, 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 Beyond Meat, JustFab, Kite Pharma, Milleneum Space Systems, Topgolf, L'Oreal's West Coast U.S. headquarters, Belkin International, and WPromote. El Segundo has been recognized as the Most Business -Friendly City in Los Angeles County three times, and offers low tax rates, convenient access to transportation, and a highly skilled workforce. AAA Credit Rating The City's POB Finance Team (City staff, Municipal Advisor, Underwriters, Bond Counsel, Disclosure Counsel, and Trustee), met with Standard & Poor's (S&P) staff on May 10, 2021 for a bond rating presentation. The meeting was successful and resulted in a strong AA+ bond rating. This was an excellent rating, particularly in the economic environment that existed with COVID-19 still having negative impacts on the economy. At the time of the AA+ bond rating issuance, S&P provided a write-up of the rating meeting with guidance on how to possibly achieve a AAA rating in the `near future.' In the months that followed, including the Fiscal Year 2023-2024, the City's local economy continued to be robust, the median house price remained strong, and major revenues continued to improve. Additionally, during this time, due to the strengthening of its financial performance, the City increased its reserve policy from 20% to 25% and established a 5% General Fund Reserve for CIP. On August 21, 2023, Standard & Poor's (S&P) Global Ratings raised the City's credit issuer rating from a AA+ to a AAA, the highest rating a municipality can be assigned. S&P credited the City's strong financial policies and practices by an established management team, continued commercial and corporate growth, and the quick revenue recovery of its well diversified and flexible general revenues following a decline during the global pandemic as reasons for the upgrade. S&P noted a stable outlook that reflects its expectation that the City will maintain a very strong financial position over the outlook period, anchored by the City's strong management profile. 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. A new four- year Strategic Plan was developed during FY 2021-2022 and will be implemented for FY 2022- 2023 through FY 2025-2026. The Strategic Plan is used as a guideline to set priorities and in development of each subsequent budget year. At a Strategic Planning session held in May 2023, City Council identified its top priorities, one of which supports its multi -year goal to champion economic development and fiscal sustainability. This priority is to Utilize the City's long-term financial plan to make financial decisions; identify opportunities for new revenues, enhancement of exiting revenues, and exploration of potential funding options to support unfunded capital improvements and deferred maintenance to address the aging infrastructure throughout the City. Following the Strategic Planning session, staff began the process of working to an update to the City's existing long-range financial plan model. As of the date of this letter of transmittal, the model is being updated to be used for planning purposes. Through the issuance in May 2021 of pension obligation bonds to prepay the existing UAL, along with a series of other forward -thinking actions taken by City Council over the past few years (including: reduced "Fresh Start" amortization period; past additional discretionary UAL payments; prepaid UAL payments; creation of a Pension Trust Fund; requiring "Classic " employees to pay their full "employee share"; adoption of formal UAL Policies; the Topgolf Revenue Allocation Policy; increasing the reserve policy from 20% to 25%; and establishing a 5% General Fund Reserve for CIP), the City is well -positioned to meet its present and future pension obligations over the next 18 years. The annual $9.8 million payment on the POBs represents a much lower recurring pension cost to the City than what would have been the case without the POBs. The City now has control over its pension costs through July 1, 2040. After 2040, the City's pensions will be fully funded and the recurring pension costs should drop significantly. After years of stress and uncertainty, the City now has more clarity and predictability in managing its pension obligations. In November 2022, El Segundo voters approved Measure BT, amending the City's ordinance governing the City's business tax which will bring in additional ongoing revenues that will continue to support important City services and programs. The business license tax increases took effect in January 2024, and saw a modest growth of 4% in business license tax revenues. 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. Relevant financial policies The City's general fund reserve policy in FY 2023-24 was 25% 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. In planning for the FY 2024-2025 budget and prior to the end of the 2023-2024 Fiscal Year, City Council maintained the reserve policy at 25% and a 5% General Fund Reserve for CIP. 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. (iv) Major initiatives The City currently has a Capital Infrastructure Plan (CIP) that includes the following projects: • Annual Water Main Maintenance; Water Facilities Maintenance • Annual Sidewalk, ADA ramp installation, Curb and Gutter Restoration Program • City Hall improvements • City-wide HVAC Replacement • EOC Upgrades • Library Improvements (Elevator & HVAC) • Local street rehabilitation and slurry seal • Park Place gap closure project (design phase) • Plunge Rehabilitation • Recreation Park Projects • Sewer main repairs • Water infrastructure improvements • 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, Paul Chung Chief Financial Officer M CITY OF EL SEGUNDO CITIZENS OF EL SEGUNDO CITY CITY CITY TREASURER I I COUNCIL I I CLERK CITY CITY MANAGER ATTORNEY INFORMATION TECHNOLOGY SERVICES HUMAN RESOURCES FINANCE POLICE FIRE COMMUNITY DEVELOPMENT PUBLIC WORKS RECREATION, PARKS, AND LIBRARY (vi) CITY OF EL SEGUNDO OFFICIALS OF THE CITY CITY COUNCIL MEMBERS Name Term Expires Drew Boyles Mayor November 2024 Chris Pimentel Mayor Pro Tern November 2026 Carol Pirsztuk Council Member November 2024 Lance Giroux Council Member November 2024 Ryan Baldino Council Member November 2026 CITY OFFICIALS Darrell George City Manager Mark Hensley City Attorney Matthew Robinson City Treasurer Tracy Weaver City Clerk CITY ADMINISTRATION Barbara Voss Deputy City Manager Paul Chung Chief Financial Officer Rebecca Redyk Director of Human Resources Saul Rodriguez Chief of Police George Avery Fire Chief Michael Allen Director of Community Development Aly Mancini Director of Recreation, Parks, and Library Elias Sassoon Director of Public Works Jose Calderon Director of Information Technology Services E 0 k Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of E1 Segundo California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO �TFAWA CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of El Segundo El Segundo, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of El Segundo (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of El Segundo's basic financial statements as listed in the table of contents. In our opinion, based on our audit and the report of the 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, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 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 El Segundo Senior Citizen Housing Corporation nonmajor enterprise fund as of December 31, 2023. Those statements 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial statements of El Segundo Senior Citizen Housing Corporation nonmajor enterprise fund was not audited in accordance with Government Auditing Standards. CLA (Clifton La rsonAl len LLP) is an independent network member of CLA Globa, CLAglobal.com/disclaimer (1) Honorable Mayor and Members of the City Council City of El Segundo Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City's ability to continue as a going concern for a reasonable period of time. (2) Honorable Mayor and Members of the City Council City of El Segundo We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison schedule — general fund, schedules of changes in net pension liabilities and related ratios — CaIPERS miscellaneous rate plan, CaIPERS 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 — CaIPERS safety rate plan, schedule of contributions — CalPERS 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 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The general fund combining schedules and the combining and individual nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the general fund combining schedules and the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. (3) Honorable Mayor and Members of the City Council City of El Segundo In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 21, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Irvine, California January 21, 2025 (4) CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 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 June 30, 2024. 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 and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $108,893,903 of the current fiscal year end (total net position). The City had an unrestricted net position of ($52,150,108). 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 $92,893,008. Of this amount, $36,162,556 (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 $40,701,761 which represents 53% of total general fund expenditures before other financing sources (uses) for fiscal year 2023-24. 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. (5) CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 Components of the Financial Section Management's Basic Required Discussion FFnancial Supplementary and tements 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. H CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 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 Senior Housing Corporation are reported in this category. The government -wide financial statements can be found beginning on page 19 of this report. 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 the funds of the City can be divided into two categories: governmental funds and proprietary 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 2023-24 are General Fund, Pension Obligation Bonds Debt Service Fund, Capital Improvement Capital Projects 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 twenty-five special revenue funds, ten Developer Impact Fees capital project funds disclosed as one column and one debt service fund. Data from these funds are combined into a single, aggregated presentation referred to as Nonmajor 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 beginning on page 101 of this report. The governmental fund financial statements can be found beginning on page 27 of this report. CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 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 activities, Wastewater (Sewer) activities and the Senior Housing Corporation. 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 costs, general liability costs and workers' compensation costs. 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. 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 and Wastewater (Sewer) operations, both are considered major funds of the City. The Senior Housing Corporation 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 proprietary fund financial statements can be found beginning on page 33 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 beginning on page 45 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 beginning on page 123 of this report. ME CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 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, assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $108,893,903 at the close of 2024 fiscal year. A summary of the government -wide statement of net position follows: Governmental Business -Type Total Activities Activities Primary Government 2C24 2023 2C24 2C23 2C24 2C23 Assets: OF Current assets and other assets 195,720,537 113,869,655 66,111,631 57,224,876 261,832,168 171,094,531 Capital assets, net 118.065.918 110.617.754 24,563,081 22.691.886 142.628.999 133.309.640 Total assets 313.786.455 224,487,409 90,674,712 79.916.762 404.461.167 304.404.171 Deferred Outflows of Resources 57:242:986 110,760,794 1:348:720 423,825 58:591:706 111:184:619 Liabilities: Current and other liabilities 23,770,372 21,276,041 7,761,776 5,161,581 31,532,148 26,437,622 Noncurrent liabilities 210.782.237 210.698.066 7311,851 6,549,917 218.094A8S 217-247-983 Total liabilities 234.552.609 231.974.107 15,073,627 11,711,498 249.626.236 243.685.605 Deferred Inflows of Resources 104:491,133 148:7651563 41:601 1,124,219 104,532,734 149,889:782 -Net position: Net investment in capital assets 108,641,202 1011562:280 22.859:587 22,684,209 131,500,789 124,246,489 Restricted 29,543,222 35:416:676 - - 29,543,222 35,416,676 Unrestricted (106.198 725) (110.637.114) 54.048.617 46.893.254 (52.150.108) (63,743,860) Total net position 5 3 L935.699 S 26341.342 S 769C3.2C4 S 69.577.463 S 103.393 903 5 95 919305 It should be kept in mind while reviewing these schedules that the resources needed to repay debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate liabilities. These assets are used to provide services to its citizens and are not available for future spending. M CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 A summary of the government -wide statement of activities follows: Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues and transfers: Property taxes Transient Occupancy taxes Sales taxes Utility user taxes Franchise taxes Business license taxes Othertaxes Motor vehicles in lieu Use of money and property, unrestricted Other Total revenues Expenses General government Public safety Public works Community & cultural Interest on long-term debt Water Sewer Golf Course Nonmajor fund Senior Housing Total expenses Excess (deficit) of revenues over expenses Transfers Change in net position Net position at beginning of year Net position at end of year Governmental Business -Type Total Activities Activities Primary Government 2024 2023 2024 2023 2024 2023 10,521,648 10,938,710 43,160,718 39,062,108 53,682,366 50,000,818 3,186,914 5,716,659 - - 3,186,914 5,716,659 6,374,894 2,510,786 6,374,894 2,510,786 11,646,066 10,750,248 11,646,066 10,750,248 14,343,804 14,143,605 14,343,804 14,143,605 17,436,292 17,424,472 17,436,292 17,424,472 9,110,254 7,963,689 9,110,254 7,963,689 6,637,891 5,738,792 6,637,891 5,738,792 14,071,956 12,748,377 14,071,956 12,748,377 5,249,944 9,880,677 5,249,944 9,880,677 2,302,513 2,108,064 2,302,513 2,108,064 8,809,978 3,982,103 1,295,711 894,511 10,105,689 4,876,614 4,053,680 2,709,006 (729,168) 4,053,680 1,979,838 113,745,834 106,615,188 44,456,429 39,227,451 158,202,263 145,842,639 23,086,066 22,930,730 - - 23,086,066 22,930,730 55,541,234 98,918,452 55,541,234 98,918,452 13,742,118 11,332,554 13,742,118 11,332,554 12,118,350 11,520,553 12,118,350 11,520,553 3,467,026 3,253,661 3,467,026 3,253,661 - - 31,418,553 28,789,265 31,418,553 28,789,265 5,090,243 4,481,743 5,090,243 4,481,743 764,075 778,448 764,075 778,448 107,954,794 147,955,950 37,272,871 34,049,456 145,227,665 182,005,406 5,791,040 (41,340,762) 7,183,558 5,177,995 12,974,598 (36,162,767) (147,183) 147,183 - 5,643,857 (41,340,762) 7,330,741 5,177,995 12,974,598 (36,162,767) 26,341,842 67,682,604 69,577,463 64,399,468 95,919,305 132,082,072 $ 31,985,699 $ 26, 441,842 $ 76,908, 004 $ 69,577,463 $ 108,893, 003 $ 95,919, 005 CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 Governmental Activities The City's net position from governmental activities increased $5,643,857. Details are listed below: Major Changes in Revenues • Operating grants decreased by $2.5 million, mostly in Prop "C" Sales Tax, while capital grants increased by $3.8 million due to the city having less grants operationally but more larger capital projects utilizing grant funds. • Utility Users taxes increased by $1.1 million due to the continually rising commodity prices; • Franchise taxes increased by $900,000 due to higher natural gas prices; • Business license taxes increased by $1.3 million due to the implementation of a local business license measure which went into effect during the fiscal year; • Other taxes decreased as the true -up payment for a Tax Resolution Agreement (TRA) came in less than the true -up payment in Fiscal Year 2022-23. However, payments made to other tax sources reflect the total amount received was reached for the TRA. • Interest and rentals increased by $4.8 million, as the City invested into higher yielding investments. The City's investments are reported at fair value per GASB 72. • Other revenues increased by $1.3 million, due in part to a Prop "A" Funding Swap, and the sale of a City -owned Residential Sound Insulation home. Maior Chanaes in Exaenses • Public safety expenses decreased by $43 million primarily due to actuarial valuation changes of pension and OPEB from previous to current fiscal year; • The rest increase of the $3.3 million was the combination of costs increase of labor, contract, and operating and maintenance materials. Overall, the $108 million cost of all "public benefit" governmental activities for the year was financed by the City's governmental program revenues, tax revenues and use of money and property revenues. City collected governmental program revenues of $20.1 million, which were paid by those who directly benefited from the programs ($10.5 million) or by other governments and organizations that subsidized certain programs with grants and contributions ($9.6 million). In 2024 fiscal year the city collected $78.5 million taxes - business license taxes of $14.1 million, sales and use taxes of $17.4 million, property taxes of $11.7 million, transient occupancy tax of $14.3 million, utility user taxes of $9.1 million, franchise taxes of $6.6 million, and other taxes of $5.3 million. The city also earned $8.8 million of interest and rental income, and $4 million of other revenue in 2024 fiscal year. Business license taxes, 12% Franchise taxes, CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 GOVERNMENT ACTIVITIES Use of money and SOURCES OF REVENUE FISCAL YEAR 2023-2024 Operating grants and . _, rharaPs fnr 1;PrvirP9. rnntrihutions, 3% ints and ons, 6% 'roperty Taxes, 10% occupancy 13% GOVERNMENT ACTIVITIES EXPENDITURES Public Works, 130i FISCAL YEAR 2023-2024 Interest on Long - Community& term Debt, 3% General Cultural, 11% Government, 21% Public Safety, 51% CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 Business -Type Activities The programs for the business -type activities include the water, wastewater (sewer) and the Senior Housing corporation. The City's net position from business -type activities increased by $7,330,741 The cost of all business - type activities this year was $37,272,871. Charges for services are the major revenue source for the City's business -type activities, accounting for $43,160,718 of total business -type activity revenue. The Water Utility net cost of service is $5,014,975, which was very stable with slight decrease comparing to net cost of service of $5,043,176, in last fiscal year. The Wastewater (Sewer) Utility net cost of service of $1,000,363, comparing to net cost of service of $741,170 in last fiscal year, is attributable to both wastewater rate increases of 9.5% on 01/01/2024 and interest income from investment. The Senior Housing Corporation net cost of service of $263,641 comparing to net cost of service of $122,817 in last fiscal year, is attributable to an increase in revenues related to interest on investments. 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 $$92,893,008, an increase of $8.2 million or 10% from the previous year. The increase is primarily due to the City's tax revenues (including mainly Utility User Tax, Franchise Tax, and Business License Tax), as well as the peaking interest rate contributing to the increase in the City's Interest and rental income revenues. The fund balance increase is also due to the net effect of a decrease in expenditures primarily due to salary savings in personnel budget. The portion of fund balance that is unreserved, undesignated for all governmental funds is $36.2 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 represents nonspendable amounts for inventory, notes and loans receivable and prepaid costs $5,034,175, (2) for a variety of other restricted and assigned purposes $51.7 million. More details can be found in Note 16. CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 GOVERNMENTAL FUND BALANCE FISCAL YEAR 2023-2024 Other GovernmPnmi F General Fund 73% Major Funds: There are three major funds on the balance sheet for governmental funds. They are the general fund (the chief operating fund of the City), the pension obligation bonds debt service fund and the capital improvement fund. At the end of the current fiscal year, the available general fund balance (assigned and unassigned) was $42,705,680 which represents 79% of total fund balance of $53,755,599. As a measure of the general fund's available resources, it may be useful to compare unrestricted fund balance in the total fund balance to total fund expenditures. The available fund balance represents 56% of total general fund expenditures before other financing sources (uses), while total general fund balance represents 71 % of that same amount. This year, the capital improvement fund was included as part of the major funds. The primary driver for this increased capital costs are due to the Urho Saari Swim Stadium / Plunge Renovation Project. During the year, the general fund transferred $12,132,500 to the capital improvement fund due to the appropriation and construction contract execution for the project. The total budget for the project is $14,617,614. The city is anticipated to raise $5 million through a fundraising campaign to replenish the general fund before the project is complete in October 2025. CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 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 $45,121,319 for the Water Utility Fund, $5,950,753 for the Wastewater (Sewer) Utility Fund and $1,924,783 for the Senior Housing Corporation. The total change in net position for the City's three proprietary funds is as follows: • The Water Utility's net position increased by $5 million or an increase of 10% over net position of the prior year due to an increase of sales and service charges revenue and an increase in interest revenue; • The Wastewater (Sewer) Utility's net position increased $1 million or an increase of 6% over net position of the prior year due to an increase of 9.5% for wastewater rate, increase of interest revenue and transfer -in; • The Senior Housing Corporation's net position increased by $263,641 or an increase of 13% over net position of the prior year is attributable to a net effect of increase in rental charges and a decrease in operating expenses. 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 City's expenditure 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 an increase in appropriations of $1,039,705, or a net decrease in budgetary fund balance of $1,039,705. • General Government appropriations increased $693,853; • Public Safety appropriations increased $416,870; • Public Works appropriations increased $451,912; • Community and Cultural appropriations decreased $662,120; • Capital Outlay appropriations increased $139,190. CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 Expenditure Overall, the general fund expenditure was under budget for $3,751,084 when comparing final budget to actual. The reasons for the major variances follow: • The General Government Departments came in $3,147,454 under budget due to position vacancies; • The Public Safety Departments came in $51,150 over budget mainly due to salaries and related benefits; • The Public Works Departments came in $993,391 under budget due to position vacancies; • The Community and Cultural Departments came in $1,314,373 under budget due to position vacancies. Revenue Differences between the final budget and the actual revenues resulted in an increase of $12,866,319 million or an 14% increase in budgeted revenues. Some significant variances between the final budget and actual revenues are as follows: • Taxes increased $5.7 million above the final budget due to increases in Transient Occupancy Tax (higher hotel occupancy and increased room rates); Franchise Tax (higher natural gas prices); and Sales and Use Tax (reflective of the economy's continued resilience post-COVID pandemic); • Use of Money and Property increased $5.9 million above the final budget, as the City invested into higher yielding investments; • Licenses and Permits increased $452,023 above the final budget due to increased demand for permits and plan checks during a peak time of development and construction in 2024. For the City's general fund, amounts available for appropriation of $89,316,753 was $12,866,319 lower than actual revenues of $102,183,072. Actual expenditures excluding other financing sources (uses) were $76,232,099 which was $3,751,084 lower than the final budget of $79,983,183, excluding other financing sources (uses). The net effect of these variances between actual and budgeted was an increase in budgetary fund balance of $16,617,403. CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets: The City's investment in capital assets for its governmental and business -type activities as of June 30, 2024, amounts to $142,293,914 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, vehicles and equipment, furniture and equipment, park facilities, roads, highways, streets, bridges, right -to -use lease related land and capital assets, right -to -use PPP assets, and subscription assets. Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated, net Buildings and improvements Furniture and equipment Vehicles and equipment Infrastructure Right -to -use Lease Land Right -to -use Lease Vehicles and Equipment Right-to-usePPPAssets Subscription Assets Total capital assets being depreciated, net Total capital assets, net Governmental Business -Type Total Activities Activities Primary Government 2024 2023 2024 2023 2024 2023 35,522,020 35,522,020 - - 35,522,020 35,522,020 10,580,853 4,384,297 1,945,835 14,584 12,526,688 4,398,881 46,102,873 39,906,317 1,945,835 14,584 48,048,708 39,920,901 17,816,817 17,750,829 - 330,228 17,816,817 18,081,057 - - - 23,564 - 23,564 5,532,023 4,969,299 1,160,999 575,404 6,693,022 5,544,703 41,379,436 40,468,086 21,121,162 21,748,105 62,500,598 62,216,192 83,623 168,005 - - 83,623 168,005 31,110 1,091 31,110 1,091 6,177,255 6,506,045 6,177,255 6,506,045 942,781 848,082 IA 111 A27 942,781 OA OAI IAI 848,082 11 011 AA1 11 lQ7 1G1 111771l17 01 2QQ 'PIQ $ 118,065,918 $ 110, 117,754 $ 24, 227,996 $ 22, 991,886 $ 142, 993,914 $ 133, 009,640 Additional information on the City's capital assets can be found in Note 8 of the Notes to Financial Statements in this report. CITY OF EL SEGUNDO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 Long-term debt: The City's governmental activities total debt decreased by $8,300,157, which is primarily attributed to the principal payment to the Pension Obligation Bonds (POBs) of $6,546,420, and a decrease in claims payable of $1,526,000. The City's business -type activities total debt had a netted increase of $344,673, which is mainly attributed to the $520,695 Finance Purchase Obligation increase for the purchase of a Public Works Jet/Vacuum Truck (sewer equipment), a $12,558 increase in compensated absences, and a decrease of $188,580 attributed to the principal payment to the POBs. Governmental Business -Type Total Activities Activities Primary Government 2024 2023 2024 2023 2024 2023 Direct Borrowings: Finance Purchase Obligation 1,785,158 1,855,162 520,695 2,305,853 5,497,738 Loan Obligation 5,142,862 5,497,738 - 5,142,862 1,855,162 Other Long -Term Debt: Pension Obligation Bonds 127,196,958 133,743,378 3,668,042 3,856,622 130,865,000 137,600,000 Leases Payable 77,040 133,029 0 0 77,040 133,029 Subscription Payable 881,092 852,664 881,092 852,664 Claims Payable 19,064,000 20,590,000 - - 19,064,000 20,590,000 Compensated Absences 4,923,712 4,699,008 176,467 163,909 5,100,179 4,862,917 Total long-term debt $ 159, 770,822 $ 167, 770,979 $ 4, 665,204 $ 4, 220,531 $ 163, 336,026 $ 171, 991,510 Additional information on the City's long-term debt can be found in Note 9 of the Notes to Financial Statements in this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS In preparing the budget for 2024-25 the following economic factors significantly impacted the budget process: • The performance of national, state and primarily local economies and its impact on El Segundo's major revenue sources; • The inflation impact on the combination of costs increase of labor, operating and maintenance materials and capital assets; • The City's Capital Improvement Plan (CIP) projects and financing source options. 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. FINANCIAL STATEMENTS CITY OF EL SEGUNDO STATEMENT OF NET POSITION JUNE 30, 2024 CURRENT ASSETS Cash and Investments Receivables: Taxes Accounts Interest Notes and Loans Leases Due from Other Governments Inventories Prepaids Internal Balances Total Current Assets NONCURRENT ASSETS Restricted Cash and Investments Leases Receivable Public -Private Partnership (PPP) Receivable Capital Assets, Not Being Depreciated/Amortized Capital Assets, Net of Depreciation/Amortization Total Noncurrent Assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows of Resources Related to Pensions Deferred Outflows of Resources Related to OPEB Total Deferred Outflows of Resources Primary Government Governmental Business -Type Activities Activities Total $ 103,203,822 $ 56,810,301 $ 160,014,123 6,839,222 - 6,839,222 974,714 7,937,897 8,912,611 1,141,467 - 1,141,467 49,405 - 49,405 96,130 - 96,130 4,648,475 - 4,648,475 163,403 26,964 190,367 140,778 53,269 194,047 (1,051,762) 1,051,762 - 116,205,654 65,880,193 182,085,847 13,952,902 231,438 14,184,340 64,797,831 - 64,797,831 764,150 - 764,150 46,102,873 1,945,835 48,048,708 71,963,045 22,617,246 94,580,291 197,580,801 24,794,519 222,375,320 313,786,455 90,674,712 404,461,167 55,034,414 1,234,416 56,268,830 2,208,572 114,304 2,322,876 57,242,986 1,348,720 58,591,706 See accompanying Notes to Financial Statements. (20) CITY OF EL SEGUNDO STATEMENT OF NET POSITION (CONTINUED) JUNE 30, 2024 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 Deferred Inflows of Resources Related to Leases Deferred Inflows of Resources Related to Public -Private Partnership Total Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Restricted for: Public Safety Public Works Economic Development Community and Cultural Opioid Crisis Mitigation Debt Services Pension Unrestricted (Deficit) Total Net Position Primary Government Governmental Business -Type Activities Activities Total $ 4,272,440 $ 6,885,954 $ 11,158,394 2,651,270 106,035 2,757,305 75,164 89,465 164,629 1,524,653 53,223 1,577,876 121,941 6,402 128,343 378,107 234,580 612,687 14,746,797 386,117 15,132,914 23,770,372 7,761,776 31,532,148 144,324,025 3,979,087 148,303,112 36,328,412 1,773,413 38,101,825 30,129,800 1,559,351 31,689,151 210,782,237 7,311,851 218,094,088 234,552,609 15,073,627 249,626,236 31,851,954 - 31,851,954 803,813 41,601 845,414 64,893,961 - 64,893,961 6,941,405 - 6,941,405 104,491,133 41,601 104,532,734 108,641,202 22,859,587 131,500,789 3,363,491 - 3,363,491 4,148,623 - 4,148,623 145,283 - 145,283 9,050,709 - 9,050,709 100,369 - 100,369 6,819,372 - 6,819,372 5,915,375 - 5,915,375 (106,198,725) 54,048,617 (52,150,108) $ 31,985,699 $ 76,908,204 $ 108,893,903 See accompanying Notes to Financial Statements. (21) CITY OF EL SEGUNDO STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2024 Program Revenues Operating Capital Total Charges for Contributions Contributions Program Functions/Programs Expenses Services and Grants and Grants Revenues GOVERNMENTAL ACTIVITIES General Government $ 23,086,066 $ 309,935 $ 3,802 $ - $ 313,737 Public Safety 55,541,234 1,884,306 327,299 249,944 2,461,549 Public Works 13,742,118 73,572 1,618,300 5,098,237 6,790,109 Community and Cultural 12,118,350 8,253,835 1,237,513 1,026,713 10,518,061 Interest on Long -Term Debt 3,467,026 - - - - Total Governmental Activities 107,954,794 10,521,648 3,186,914 6,374,894 20,083,456 BUSINESS -TYPE ACTIVITIES Water 31,418,553 36,062,306 36,062,306 Sewer 5,090,243 6,132,995 6,132,995 El Segundo Senior Citizen Housing Corp. 764,075 965,417 965,417 Total Business -Type Activities 37,272,871 43,160,718 43,160,718 Total Primary Government $ 145,227,665 $ 53,682,366 $ 3,186,914 $ 6,374,894 $ 63,244,174 See accompanying Notes to Financial Statements. (22) CITY OF EL SEGUNDO STATEMENT OF ACTIVITIES (CONTINUED) YEAR ENDED JUNE 30, 2024 Net (Expense) Revenue and Changes in Net Position Governmental Business -Type Functions/Programs Activities Activities Total GOVERNMENTAL ACTIVITIES General Government $ (22,772,329) $ $ (22,772,329) Public Safety (53,079,685) (53,079,685) Public Works (6,952,009) (6,952,009) Community and Cultural (1,600,289) (1,600,289) Interest on Long -Term Debt (3,467,026) (3,467,026) Total Governmental Activities (87,871,338) (87,871,338) BUSINESS -TYPE ACTIVITIES Water 4,643,753 4,643,753 Sewer 1,042,752 1,042,752 El Segundo Senior Citizen Housing Corp. 201,342 201,342 Total Business -Type Activities 5,887,847 5,887,847 Total Primary Government GENERAL REVENUES AND TRANSFERS Taxes: Property Taxes, Levied for General Purpose Transient Occupancy Taxes Sales Taxes Utility User Taxes Franchise Taxes Business Licenses Taxes Other Taxes Total Taxes Intergovernmental -Motor Vehicle In Lieu Use of Money and Property, Unrestricted Other Transfers Total General Revenues and Transfers CHANGE IN NET POSITION Net Position - Beginning of Year NET POSITION - END OF YEAR (87,871,338) 5,887,847 (81,983,491) 11,646,066 11,646,066 14,343,804 14,343,804 17,436,292 17,436,292 9,110,254 9,110,254 6,637,891 6,637,891 14,071,956 14,071,956 5,249,944 5,249,944 78,496,207 78,496,207 2,302,513 - 2,302,513 8,809,978 1,295,711 10,105,689 4,053,680 - 4,053,680 (147,183) 147,183 - 93,515,195 1,442,894 94,958,089 5,643,857 7,330,741 12,974,598 26,341,842 69,577,463 95,919,305 $ 31,985,699 $ 76,908,204 $ 108,893,903 See accompanying Notes to Financial Statements. (23) This page intentionally left blank (24) FUND FINANCIAL STATEMENTS (25) This page intentionally left blank (26) GOVERNMENTAL FUNDS FINANCIAL STATEMENTS General Fund — To account for and report all financial resources not accounted for and reported in another fund. Pension Obligation Bonds Debt Service Fund — Accounts for the payments of interest and principal of the pension obligation bonds. Capital Improvement Capital Projects 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. Nonmajor Governmental Funds — To account for the aggregate of all the nonmajor governmental funds. (27) CITY OF EL SEGUNDO BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2024 ASSETS Cash and Investments Restricted Cash and Investments Receivables: Taxes Accounts Interest Notes and Loans Leases Public -Private Partnership Due from Other Funds Due from Other Governments Inventories Prepaids Advances to Other Funds 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 Advances From Other Funds Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenues Related to Leases Related to Public -Private Partnership Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned (Deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Pension Capital Obligation Improvement Nonmajor Bonds Debt Capital Governmental General Service Fund Projects Fund Funds Total $ 41,098,215 $ - $ 24,676,953 $ 16,259,157 $ 82,034,325 5,915,375 8,037,527 - - 13,952,902 6,839,222 - - 6,839,222 689,968 22,600 712,568 1,141,467 - 1,141,467 - 49,405 49,405 64,893,961 - 64,893,961 764,150 764,150 3,697,684 - 3,697,684 203,866 4,444,609 4,648,475 163,403 - 163,403 140,778 140,778 4,729,994 - - 4,729,994 $ 130,278,083 $ 8,037,527 $ 24,676,953 $ 20 775,771 $ 183,768,334 $ 2,295,249 $ $ 453,305 $ 1,209,254 $ 3,957,808 2,619,276 - 31,994 2,651,270 25,774 34,468 14,922 75,164 - - 3,697,684 3,697,684 121,941 - 121,941 344,198 - 33,909 378,107 5,330,745 4,729,994 - 10,060,739 10,737,183 5,217,767 4,987,763 20,942,713 127,190 - 4,147,312 4,274,502 64,893,961 - 64,893,961 764,150 - 764,150 65,785,301 4,147,312 69,932,613 5,034,175 - 5,034,175 6,015,744 8,037,527 - 16,179,901 30,233,172 2,003,919 - 19,459,186 - 21,463,105 40,701,761 - (4,539,205) 36,162,556 53,755,599 8,037,527 19,459,186 11,640,696 92,893,008 $ 130,278,083 $ 8,037,527 $ 24,676,953 $ 20,775,771 $ 183,768,334 See accompanying Notes to Financial Statements. (28) CITY OF EL SEGUNDO RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT -WIDE STATEMENT OF NET POSITION JUNE 30, 2024 Total Fund Balances -Total Governmental Funds $ 92,893,008 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 funds: Amount Reported in Government -Wide Statement of Position: Capital Assets, Nondepreciable 46,102,873 Capital Assets, Depreciable, Net (Net of $3,667,895 reported in ISF) 68,295,150 Interest is recognized when due and, therefore, interest payable is not reported in the governmental funds. (1,524,653) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds' Balance Sheet. Finance Purchase and Loan Obligations (6,928,020) Pension Obligation Bonds (127,196,958) Leases Payable (77,040) Subscriptions Payable (881,092) Compensated Absences (4,923,712) Pension and OPEB related liabilities applicable to the City's governmental activities are not due and payable in the current period and, therefore, are not reported in the governmental funds. Deferred outflows of resources and deferred inflows of resources related to pension and OPEB are only reported in the government -wide financial statements. Deferred Outflows of Resources Related to Pensions (Net of $188,500 reported in ISF.) 54,845,914 Deferred Inflows of Resources Related to Pensions (Net of $0 reported in ISF.) (31,851,954) Aggregate Net Pension Liability (Net of $270,808 reported in ISF.) (36,057,604) Deferred Outflows of Resources Related to OPEB (Net of $10,785 reported in ISF.) 2,197,787 Deferred Inflows of Resources Related to OPEB (Net of $3,926 reported in ISF.) (799,887) Net OPEB Liability (Net of $147,133 reported in ISF.) (29,982,667) Deferred inflows of resources related to right -to -use PPP assets are not reported in the governmental funds, but are reported in government -wide financial statements. (6,177,255) Internal service funds are used by management to charge the costs of equipment replacement, general liability, and workers' compensation 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. 9,777,307 Net Position of Governmental Activities $ 31,985,699 See accompanying Notes to Financial Statements. (29) CITY OF EL SEGUNDO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 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) Subscription and Lease Payable Issuance Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balances - Beginning of Year, As Originally Reported Adjustment Fund Balances - Beginning of Year, As Adjusted FUND BALANCES - END OF YEAR Pension Capital Obligation Improvement Bonds Debt Capital General Service Fund Projects Fund $ 64,404,087 $ $ $ 17,109,023 2,302,513 5,611,405 8,723,431 382,947 102,183, 072 20,682,719 36,275,581 8,470,010 8,581,615 1,310,687 - 775,966 6,546,420 135,521 2,939,130 Nonmajor Governmental Funds Total 39,994 $ 64,444,081 85,384 17,194,407 3,691,259 5,993,772 1,121,814 6,733,219 389,185 9,112,616 36,685 419,632 518,448 518,448 6,959,470 109,142,542 16,492 20,699,211 369,639 36,645,220 407,444 8,877,454 - 2,074,160 10,655,775 1,829,071 10,201,140 13,340,898 - 354,876 7,677,262 152,693 3,227,344 25,950,973 (9,485,550) (1,829,071) (6,616,974) 8,019,378 741,890 - - - 741,890 1,050,500 9,497,707 15,433,230 448,504 26,429,941 (22,634,454) - - (4,351,231) (26,985,685) (20,842,064) 9,497,707 15,433,230 (3,902,727) 186,146 5,108,909 12,157 13,604,159 (10,519,701) 8,205,524 48,646,690 8,025,370 - 28,015,424 84,687,484 - - 5,855,027 (5,855,027) - 48,646,690 8,025,370 5,855,027 22,160,397 84,687,484 $ 53,755,599 $ 8,037,527 $ 19,459,186 $ 11,640,696 $ 92,893,008 See accompanying Notes to Financial Statements. (30) CITY OF EL SEGUNDO RECONCILIATION OF THE GOVERNMENT FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2024 Net Change in Fund Balances - Total Governmental Funds $ 8,205,524 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/amortization expense. The following is the amount by which capital outlays exceeded depreciation in the current period: Capital Outlay 11,761,316 Depreciation/Amortization (Net of $497,251 reported in ISF) (4,958,202) 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. (224,704) OPEB 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 OPEB 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. 890,196 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. (25,038,189) 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 was an expenditure in the governmental funds, but the repayment reduced long-term liabilities in the Government -Wide Statement of Net Position. Subscription and Lease Payable Issuance (741,890) Principal Repayments of Long -Term Debt 7,677,262 Interest Accrual on Long -Term Debt (239,682) Amortization of deferred inflows of resources related to the right -to -use PPP assets. 328,790 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. 4,274,502 Internal service funds were used by management to charge the costs of certain activities, such as equipment replacement and insurance, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 3,708,934 Change in Net Position of Governmental Activities $ 5,643,857 See accompanying Notes to Financial Statements. (31) This page intentionally left blank (32) 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. Nonmajor Enterprise Funds — To account for the aggregate of all the nonmajor enterprise funds. 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) CITY OF EL SEGUNDO STATEMENT OF NET POSITION - PROPRIETARY FUNDS JUNE 30, 2024 Business -Type Activities - Enterprise Funds Nonmajor Enterprise Funds El Segundo Senior Business -Type Citizen Housing Activities - Corporation Enterprise Water Sewer December 31, 2023 Funds Total ASSETS Current Assets: Cash and Investments $ 47,569,441 $ 7,277,011 $ 1,963,849 $ 56,810,301 Accounts Receivable 6,969,670 968,227 - 7,937,897 Inventories 26,964 - - 26,964 Prepaids - - 53,269 53,269 Total Current Assets 54,566,075 8,245,238 2,017,118 64,828,431 Noncurrent Assets: Advances to Other Funds - - - - Restricted Cash and Investments 140,516 90,922 231,438 Capital Assets, Not Being Depreciated/Amortized 840,954 1,104,881 - 1,945,835 Capital Assets, Net of Depreciation/Amortization 12,002,290 10,279,871 335,085 22,617,246 Total Noncurrent Assets 12,983,760 11,475,674 335,085 24,794,519 Total Assets 67,549,835 19, 720, 912 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows of Resources Related to Pension 720,723 Deferred Outflows of Resources Related to OPEB 64,368 Total Deferred Outflows of Resources 785,091 513,693 49,936 563,629 2,352,203 89,622,950 - 1,234,416 114,304 1,348,720 See accompanying Notes to Financial Statements. (34) CITY OF EL SEGUNDO STATEMENT OF NET POSITION - PROPRIETARY FUNDS (CONTINUED) JUNE 30, 2024 Governmental Activities - Internal Service Funds ASSETS Current Assets: Cash and Investments $ 21,169,497 Accounts Receivable 262,146 Inventories - Prepaids - Total Current Assets 21,431,643 Noncurrent Assets: Advances to Other Funds 5,330,745 Restricted Cash and Investments - Capital Assets, Not Being Depreciated/Amortized - Capital Assets, Net of Depreciation/Amortization 3,667,895 Total Noncurrent Assets 8,998,640 Total Assets 30,430,283 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows of Resources Related to Pension 188,500 Deferred Outflows of Resources Related to OPEB 10,785 Total Deferred Outflows of Resources 199,285 See accompanying Notes to Financial Statements. (35) CITY OF EL SEGUNDO STATEMENT OF NET POSITION - PROPRIETARY FUNDS (CONTINUED) JUNE 30, 2024 LIABILITIES Current Liabilities: Accounts Payable Accrued Liabilities Retentions Payable Unearned Revenue Deposits Payable Claims and Judgments, Current Portion Compensated Absences, Current Portion Note Payable, Current Portion Pension Obligation Bonds, Current Portion Total Current Liabilities Noncurrent Liabilities: Advances from Other Funds Claims and Judgments Compensated Absence Note Payable Pension Bonds Payable Aggregate Net Pension Liability Net Other Postemployment Benefit Liability Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources Related to OPEB Total Deferred Inflows of Resources NET POSITION Net Investment in Capital Assets Unrestricted (Deficit) Total Net Position Adjustment to Reflect the Consolidation of Internal Service Fund Activities Related to Enterprise Funds Net Position of Business -Type Activity Business -Type Activities - Enterprise Funds Nonmajor Enterprise Funds El Segundo Senior Business -Type Citizen Housing Activities - Corporation Enterprise Water Sewer December 31, 2023 Funds Total $ 6,567,667 $ 307,287 $ 11,000 $ 6,885,954 93,992 65,266 - 159,258 40,027 49,438 - 89,465 - - 6,402 6,402 159,647 74,933 234,580 66,972 9,237 76,209 - 120,628 120,628 114,920 74,360 - 189,280 7,043,225 626,216 92,335 7,761,776 83,317 16,941 100,258 - 400,067 400,067 2,165,383 1,313,379 3,478,762 1,035,421 737,992 1,773,413 878,114 681,237 1,559,351 4,162,235 3,149,616 - 7,311,851 11,205,460 3,775,832 92,335 15,073,627 23,427 18,174 23,427 18,174 41,601 41.601 11,984,720 10,539,782 335,085 22,859,587 45,121,319 5,950,753 1,924,783 52,996,855 $ 57,106,039 $ 16,490,535 $ 2,259,868 75,856,442 1,051,762 $ 76,908,204 See accompanying Notes to Financial Statements. (36) CITY OF EL SEGUNDO STATEMENT OF NET POSITION - PROPRIETARY FUNDS (CONTINUED) JUNE 30, 2024 Governmental Activities - Internal Service Funds LIABILITIES Current Liabilities: Accounts Payable $ 314,632 Accrued Liabilities - Retentions Payable Unearned Revenue Deposits Payable - Claims and Judgments, Current Portion 4,307,923 Compensated Absences, Current Portion - Leases Payable, Current Portion Pension Obligation Bonds, Current Portion - Total Current Liabilities 4.622.555 Noncurrent Liabilities: Advances from Other Funds - Claims and Judgments 14,756,077 Compensated Absence - Leases Payable Pension Bonds Payable - Aggregate Net Pension Liability 270,808 Net Other Postemployment Benefit Liability 147,133 Total Noncurrent Liabilities 15,174,018 Total Liabilities 19,796,573 DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources Related to OPEB 3,926 Total Deferred Inflows of Resources 3,926 NET POSITION Net Investment in Capital Assets 3,566,503 Unrestricted (Deficit) 7,262,566 Total Net Position $ 10,829,069 See accompanying Notes to Financial Statements. (37) CITY OF EL SEGUNDO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2024 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/Amortization Total Operating Expenses OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES) Interest Revenue Interest Expense Total Nonoperating Revenues (Expenses) INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS TRANSFERS Transfers In Transfers Out Total Transfers CHANGES IN NET POSITION Business -Type Activities - Enterprise Funds Nonmajor Enterprise Funds El Segundo Senior Business -Type Citizen Housing Activities - Corporation Enterprise Water Sewer December 31, 2023 Funds Total $ 36,036,885 $ 6,132,995 $ 935,427 $ 43,105,307 25,421 - 29,990 55,411 36,062,306 6,132,995 965,417 43,160,718 2,154,346 1,195,714 3,350,060 147,383 155,767 - 303,150 26,595,469 - 135,518 26,730,987 1,000,000 500,000 85,045 1,585,045 186,085 2,020,949 186,000 2,393,034 275,490 318,474 246,674 840,638 1,423,750 742,340 74,546 2,240,636 266,693 482,717 36,292 785,702 32,049,216 5,415,961 764,075 38,229,252 4,013,090 717,034 201,342 4,931,466 1,053,077 180,335 62,299 1,295,711 (51,192) (44,189) - (95,381) 1,001,885 136,146 62,299 1,200,330 5,014,975 853,180 263,641 6,131,796 147,183 147,183 5,014,975 1,000,363 - 147,183 263,641 6,278,979 Net Position - Beginning of Year 52,091,064 15,490,172 1,996,227 69,577,463 NET POSITION - END OF YEAR $ 57,106,039 $ 16,490,535 $ 2,259,868 $ 75,856,442 ADJUSTMENT TO REFLECT THE CONSOLIDATION OF INTERNAL SERVICE FUND ACTIVITIES RELATED TO ENTERPRISE FUND $ 1,051,762 CHANGE IN NET POSITION - ENTERPRISE FUND 6,278,979 CHANGE IN NET POSITION OF BUSINESS -TYPE ACTIVITY $ 7,330,741 See accompanying Notes to Financial Statements. (38) CITY OF EL SEGUNDO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Governmental Activities - Internal Service Funds OPERATING REVENUES Sales and Service Charges $ - Interdepartmental Charges 8,559,994 Miscellaneous 462,609 Total Operating Revenues 9,022,603 OPERATING EXPENSES Personnel Services 297,089 Materials and Supplies 78,801 Purchased Water/Utilities - Insurance and Claims 3,797,327 Contractual Services - Repairs and Maintenance Administrative Cost - Depreciation/Amortization 497,251 Total Operating Expenses 4,670,468 OPERATING INCOME (LOSS) 4,352,135 NONOPERATING REVENUES (EXPENSES) Interest Revenue - Interest Expense Total Nonoperating Revenues (Expenses) - INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 4.352.135 TRANSFERS Transfers In 555,744 Transfers Out (147,183) Total Transfers 408,561 CHANGES IN NET POSITION 4,760,696 Net Position - Beginning of Year 6,068,373 NET POSITION - END OF YEAR $ 10,829,069 See accompanying Notes to Financial Statements. (39) CITY OF EL SEGUNDO STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2024 Business -Type Activities - Enterprise Funds Nonmajor Enterprise Funds El Segundo Senior Business -Type Citizen Housing Activities - Corporation Enterprise Water Sewer December 31, 2023 Funds Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers and Users $ 34,836,667 $ 6,038,986 $ 967,435 $ 41,843,088 Payments for Insurance Claims - - - - Payments to Suppliers (28,144,602) (3,767,487) (728,722) (32,640,811) Payments to Employees (1,783,362) (999,873) - (2,783,235) Net Cash Provided by Operating Activities 4,908,703 1,271,626 238,713 6,419,042 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash Receipts from Other Funds - 147,183 - 147,183 Cash Receipts Payments to Other Funds - - Repayments of Bonds Payable (114,496) (74,085) (188,581) Interest Expense (51,192) (44,189) (95,381) Net Cash Provided (Used) by Noncapital Financing Activities (165,688) 28,909 (136,779) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (66,006) (1,497,924) (17,585) (1,581,515) Proceeds From Issuance of Notes Payable 667,878 667,878 Repayments of Notes Payable (147,183) (147,183) Net Cash Used by Capital and Related Financing Activities (66,006) (977,229) (17,585) (1,060,820) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 1,053,077 180,335 62,299 1,295,711 Net Cash Provided by Investing Activities 1,053,077 180,335 62,299 1,295,711 NET CHANGE IN CASH AND CASH EQUIVALENTS 5,730,086 503,641 283,427 6,517,154 Cash and Cash Equivalents - Beginning of Year 41,979,871 6,864,292 1,680,422 50,524,585 CASH AND CASH EQUIVALENTS - END OF YEAR $ 47,709,957 $ 7,367,933 $ 1,963,849 $ 57,041,739 CASH AND CASH EQUIVALENTS Cash and Investments $ 47,569,441 $ 7,277,011 $ 1,963,849 $ 56,810,301 Restricted Cash 140,516 90,922 - 231,438 $ 47,709,957 $ 7,367,933 $ 1,963,849 $ 57,041,739 See accompanying Notes to Financial Statements. (40) CITY OF EL SEGUNDO STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Governmental Activities - Internal CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers and Users $ 8,760,457 Payments for Insurance Claims (5,086,875) Payments to Suppliers (47,168) Payments to Employees (208,424) Net Cash Provided by Operating Activities 3,417,990 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash Receipts from Other Funds 802,909 Cash Receipts Payments to Other Funds (147,183) Repayments of Bonds Payable - Interest Expense - Net Cash Provided (Used) by Noncapital Financing Activities 655,726 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (1,104,398) Proceeds From Issuance of Notes Payable Repayments of Notes Payable Net Cash Used by Capital and Related Financing Activities (1,104,398) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received Net Cash Provided by Investing Activities NET CHANGE IN CASH AND CASH EQUIVALENTS 2,969,318 Cash and Cash Equivalents - Beginning of Year 18,200,179 CASH AND CASH EQUIVALENTS - END OF YEAR $ 21,169,497 CASH AND CASH EQUIVALENTS Cash and Investments $ 21,169,497 Restricted Cash - $ 21,169,497 See accompanying Notes to Financial Statements. (41) CITY OF EL SEGUNDO STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Business -Type Activities - Enterprise Funds Nonmajor Enterprise Funds El Segundo Senior Business -Type Citizen Housing Activities - Corporation Enterprise Water Sewer December 31, 2023 Funds Total RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) $ 4,013,090 $ 717,034 $ 201,342 $ 4,931,466 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation/Amortization 266,693 482,717 36,292 785,702 (Increase) Decrease in: Accounts Receivable (1,225,639) (94,009) 4,000 (1,315,648) Inventory 9,315 - 9,315 Prepaid Items - - (11,506) (11,506) Deferred Outflows of Resources - Pension 112,725 21,362 134,087 Deferred Outflows of Resources - OPEB 27,535 (12,690) - 14,845 Increase (Decrease) in: Accounts Payable 1,388,598 (102,459) 4,856 1,290,995 Accrued Liabilities 20,203 23,064 - 43,267 Retentions Payable 40,027 49,438 89,465 Unearned Revenue - - (1,982) (1,982) Deposits Payable 25,432 5,711 31,143 Claims and Judgements - - - Compensated Absences Payable 43,905 (31,347) 12,558 Net Pension Liability 240,426 260,105 500,531 Net Other Postemployment Liability (6,388) (4,956) - (11,344) Deferred Inflows of Resources - Pension (36,633) (36,633) Deferred Inflows of Resources - OPEB (47,219) - - (47,219) Total Adjustments 895,613 554,592 37,371 1,487,576 Net Cash Provided by Operating Activities $ 4,908,703 $ 1,271,626 $ 238,713 $ 6,419,042 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital Assets in Accounts Payable $ 800,545 $ 274,836 $ - $ - See accompanying Notes to Financial Statements. (42) CITY OF EL SEGUNDO STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Governmental Activities - Internal Service Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) $ 4,352,135 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation/Amortization 497,251 (Increase) Decrease in: Accounts Receivable (262,146) Inventory Prepaid Items - Deferred Outflows of Resources - Pension 43,975 Deferred Outflows of Resources - OPEB 4,614 Increase (Decrease) in: Accounts Payable 279,308 Accrued Liabilities (11,223) Retentions Payable - Unearned Revenue Deposits Payable Claims and Judgements (1,526,000) Compensated Absences Payable - Net Pension Liability 49,058 Net Other Postemployment Liability (1,071) Deferred Inflows of Resources - Pension - Deferred Inflows of Resources - OPEB (7,911) Total Adjustments (934,145) Net Cash Provided by Operating Activities $ 3,417,990 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital Assets in Accounts Payable $ 101,392 See accompanying Notes to Financial Statements. (43) This page intentionally left blank (44) NOTES TO THE FINANCIAL STATEMENTS (45) This page intentionally left blank (46) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 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: 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. Blended Component Unit Blended component units are, in substance, part of the primary government's operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of 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, appointed by the City Council, all of whom are unpaid volunteers. 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. The City is the sole corporate member of the Corporation, as identified in the Corporation's articles of incorporation. As such, the activities of the Corporation are presented as a blended component unit in the proprietary fund financial statements as a nonmajor enterprise fund. The Corporation's fiscal year end is December 31, which is different than the City's fiscal year-end. Separate financial statements may be obtained at City Hall, City of El Segundo, 350 Main Street, El Segundo, CA 90245. 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. (47) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting and Measurement Focus (Continued) Deferred Outflows of Resources — represent outflows of resources (consumption of net assets) 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. Deferred Inflows of Resources — represent inflows of resources (acquisition of net assets) that apply to future periods and that, therefore, are not recognized as revenue until that time. The City has items related to unavailable revenues, leases, public private partnerships, pensions, and OPEB that qualify for reporting in this category. 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. 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 regard 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 (48) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting and Measurement Focus (Continued) 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. The City's fund structure includes the following fund types ➢ Special Revenue Funds — are used to account for proceeds of specific revenue sources that are legally restricted or otherwise committed 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. 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. ➢ Pension Obligation Bonds Debt Service Fund — Accounts for the payments of interest and principal of the pension obligation bonds. ➢ Capital Improvement Capital Projects 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. (49) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting and Measurement Focus (Continued) 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. 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. ➢ Nonmajor Enterprise Funds — Accounts for revenues and expenses of the aggregate nonmajor enterprise funds. 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. (50) NOTE 1 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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). 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. Interfund Transactions Activity between funds that are representative outstanding at the end of the fiscal year are referre current portion of interfund loans). Any residual governmental activities and business -type activities financial statements as "internal balances". Inventories and Prepaid Items d of lending/borrowing arrangements to as "due from/to other funds" (i.e., balances outstanding between the are reported in the government -wide 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. 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. (51) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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 leases are capitalized at the net present value of the total lease payments. 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 to 50 Years Infrastructure 25 to 100 Years Right -to -use lease assets are initially measured at the present value of payments expected to be made during the lease term, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. Subscription assets are initially measured as the sum of the present value of payments expected to be made during the subscription term, payments associated with the SBITA contract made to the SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the commencement of the SBITA term. Subscription assets are amortized in a systematic and rational manner over the shorter of the subscription term or the useful life of the underlying IT assets. 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. (52) NOTE 1 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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 10). 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: CaIPFRR Valuation Date Measurement Date Measurement Period PARS Valuation Date Measurement Date Measurement Period June 30, 2022 June 30, 2023 July 1, 2022 to June 30, 2023 June 30, 2022 September 30, 2023 October 1, 2022 to September 30, 2023 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 five 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. (53) NOTE 1 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 11). 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 used for reported OPEB reporting: Valuation Date Measurement Date Measurement Period June 30, 2023 June 30, 2024 July 1, 2023 to June 30, 2024 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 five 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. 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. 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. (54) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 1 % of full market value (at time of purchase) and can increase the property's value no more than 2% per year. 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 and other payables 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. (55) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Net Position and Fund Balances (Continued) 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. 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. Unassigned — 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. The General Fund has established a target fund balance of a minimum of 25% of General Fund expenditures each fiscal year in addition to maintaining a $2,000,000 fund balance for economic uncertainty. 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 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. (56) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 2 BUDGETARY COMPLIANCE AND DEFICIT FUND BALANCES Excess of Expenditures Over Appropriations The following funds had expenditures in excess of appropriations: Excess of Expenditures Over Appropriations Expenditures Appropriations Major Governmental Funds: General Fund General Government: City Attorney $ 835,450 $ 892,398 $ (56,948) Nondepartmental 7,935,201 8,634,526 (699,325) Public Safety: Police 19,364,059 19,463,754 (99,695) Capital Outlay 569,190 1,310,687 (741,497) Debt Service: Principal Retirement - 775,966 (775,966) Interest - 135,521 (135,521) Pension Obligation Bonds Debt Service Fund Debt Service: Interest 2,926,986 2,939,130 (12,144) Nonmajor Governmental Funds: Certified Union Program Agencies Special Revenue Fund Community and Cultural 537,828 569,658 (31,830) Prop A Special Revenue Fund Community and Cultural 1,103,273 1,109,641 (6,368) State Grants Special Revenue Fund Community and Cultural 43,086 46,315 (3,229) PSAF Property Tax Public Safety Special Revenue Fund Public Safety 75,000 75,309 (309) Senior Housing Special Revenue Fund Community and Cultural 8,981 11,743 (2,762) SB 1 Special Revenue Fund Capital Outlay 800,000 802,743 (2,743) Facility Loan Debt Service Fund General Government - 16,492 (16,492) (57) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 2 BUDGETARY COMPLIANCE AND DEFICIT FUND BALANCES (CONTINUED) Deficit Fund Balances and Net Positions Funds with deficit fund balances and net position at June 30, 2024 are as follows: Deficit Proc C Special Revenue Fund $ 1,099,405 State and County Grants Special Revenue Fund 384,348 Measure M Special Revenue Fund 3,055,452 Liability Insurance Internal Service Fund 4,602,068 Workers' Compensation Internal Service Fund 3,120,898 The City expects to eliminate the Special Revenue Fund deficits when future reimbursements are received from granting agencies. The Liability Insurance and Workers' Compensation Internal Service Fund deficits are expected to be eliminated through future interdepartmental charges. For the year ended June 30, 2024, the Governmental Activities of the City reported a deficit unrestricted net position of $(105,794,104). 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. At June 30, 2024, the City has an aggregate net pension liability and a net OPEB liability of $36,328,412 and $30,129,800, respectively, that 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 Cash and investments as of June 30, 2024 are classified in the accompanying financial statements as follows: Government -Wide Statement of Net Position Governmental Business -Type Activities Activities Total Cash and Investments $ 103,203,822 $ 56,810,301 $ 160,014,123 Restricted Cash and Investments 13,952,902 231,438 14,184,340 Total Cash and Investments $ 117,156,724 $ 57,041,739 $ 174,198,463 (58) NOTE 3 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 CASH AND INVESTMENTS (CONTINUED) Primary Government (Continued) Cash and investments, excluding cash held by the El Segundo Senior Citizen Housing Corporation, as of June 30, 2024 consist of the following: Cash and Cash Equivalents: Petty Cash $ 15,054 Demand Deposits 8,211,502 Total Cash and Cash Equivalents 8,226,556 Investments CAMP 17,982,202 CalTrust 10,354,937 Corporate Notes 22,554,395 Negotiable Certificates of Deposit 39,614,361 Local Agency Investment Fund 43,332 State Obligations 1,486,070 U.S. Treasury Bills 57,049,560 U.S. Government Sponsored Enterprise Securities 1,973,650 Section 115 Pension Trust 5,915,375 Held by Bond Trustee: Money Market Mutual Funds 8,268,965 Total Investments 165,242,847 Total Cash and Investments $ 173,469,403 Blended Component Unit Cash and investments held by the El Segundo Senior Citizen Housing Corporation as of December 31, 2023 consist of the following: Deposits with Financial Institutions $ 729,060 Investments held by the City, part of investments disclosed above 1,234,789 Total Cash and Investments $ 1,963,849 Deposits The carrying amounts of the City's demand deposits were $8,214,327 at June 30, 2024. Bank balances at that date were $8,014,764, 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. (59) NOTE 3 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 CASH AND INVESTMENTS (CONTINUED) Deposits (Continued) 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. Investments Authorized by the City's Investment Policy Under the provision of the City's investment policy, and in accordance with California Government Code, the following investments are authorized: Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity of Portfolio * One Issuer United States Treasury Obligations 5 Years No Limit No Limit U.S. Government Sponsored Enterprise Securities 5 Years No Limit No Limit State and Local Agency Bonds 5 Years No Limit 1 % Negotiable Certificates of Deposit 5 Years 30% $250K Local Agency Investment Fund (LAIF) N/A No Limit $75M Nonnegotiable Certificates of Deposits 5 Years No Limit $250K Medium -Term Notes 5 Years 30% 1% Mutual Funds N/A 20% 10% Money Market Mutual Funds N/A 20% 10% Supranational Obligations 5 Years 30% 1 % County Pooled Investment Funds N/A No Limit 50% Joint Powers Authority Pool N/A No Limit 50% Excluding amounts held by bond trustees that are not subject to California Government Code restrictions. Investment in State Investment Pool 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 fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's prorate share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. M CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 3 CASH AND INVESTMENTS (CONTINUED) Investments Authorized by the City's Investment Policy (Continued) Investment in Section 115 Pension Trust The City established a trust account with Charels Schwab Trust Bank to hold assets that are legally restricted for use in administering the City's CalPERS 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. 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. Fair Value Measurement As of June 30, 2024, 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 June 30, 2024: Measurement Input Significant Other Observable Investment Type Inputs (Level 2) Uncategorized Total CAMP $ $ 17,982,202 $ 17,982,202 CalTrust 10,354,937 10,354,937 Corporate Notes '� 22,554,395 - 22,554,395 Negotiable CDs 39,614,361 - 39,614,361 LAIF - 43,332 43,332 State Obligations 1,486,070 - 1,486,070 U.S. Treasury Bills '� 57,049,560 57,049,560 U.S. Government Sponsored Enterprise Securities (') Section 115 Pension Trust Held by Bond Trustee: Money Market Mutual Funds Total (') Pricing based on Interactive Data Corporation 1,973,650 5,915,375 8,268,965 1,973,650 5,915,375 8,268,965 $ 122,678,036 $ 42,564,811 $ 165,242,847 All investments classified in Level 2 of the fair value hierarchy are valued using specified fair market value factors or institutional bond quotes. (61) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 3 CASH AND INVESTMENTS (CONTINUED) 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 June 30, 2024, the City had the following investment maturities: Investment Maturities (in Years) Less Than Investment Type Fair Value 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years CAMP $ 17,982,202 $ 17,982,202 $ $ $ $ CalTrust 10,354,937 10,354,937 Corporate Notes 22,554,395 1,978,120 5,362,370 5,805,340 9,408,565 - Negotiable CDs 39,614,361 9,044,769 10,954,640 8,306,706 8,066,559 3,241,687 LAIF 43,332 43,332 - - - - State Obligations 1,486,070 1,486,070 - - - U.S. Treasury Bills 57,049,560 23,437,200 11,131,920 10,662,720 11,817,720 U.S. Government Sponsored Enterprise Securities 1,973,650 1,973,650 - - - Section 115 Pension Trust 5,915,375 5,915,375 Held by Bond Trustee: Money Market Mutual Funds 8,268,965 8,268,965 - - - Total $ 165,242,847 $ 80,484,620 $ 27,448,930 $ 24,774,766 $ 17,475,124 $ 15,059,407 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 June 30, 2024. (62) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 3 CASH AND INVESTMENTS (CONTINUED) Risk Disclosures (Continued) 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 _ CAMP N/A $ CalTrust N/A Corporate Notes A Negotiable CDs A LAIF N/A State Obligations N/A U.S. Treasury Bills N/A U.S. Government Sponsored Enterprise Securities N/A Section 115 Pension Trust N/A Held by Bond Trustee Unrated or Total AAA AA A BBB Exempt(1) 17,982,202 $ 17,982,202 $ $ $ $ 10, 354,937 10,354,937 22,554,395 - 1,434,715 18,684,260 2,435,420 - 39,614,361 - - - 39,614,361 43,332 - 43,332 1,486,070 1,486, 070 - 57,049,560 - 57,049,560 1,973,650 1,973, 650 - 5,915,375 - 5,915,375 Money Market Mutual Funds A 8,268,965 8,268,965 - - - - Total $ 165,242,847 $ 36,606,104 $ 4,894,435 $ 18,684,260 $ 2,435,420 $ 102,622,628 (1) U.S. Treasury Bills are exempt from disclosure. (63) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 4 LEASE RECEIVABLES On February 6, 2021, the City (lessor) entered into a ground lease agreement with ES CenterCal, LLC, a Delaware limited liability company (lessee), who subleased the Premises to Topgolf for the purpose of operating a commercial driving range, full -service restaurant, clubhouse, and event space. The ground lease includes an initial term of 20 years. ES CenterCal will then have six options to extend the agreement by five-year increments, resulting in a potential total agreement term of 50 years. ES CenterCal will make the following payments to the General Fund: (1) $108,333 monthly ground lease payments for the driving range from the Fixed Rent Commencement Date, with a 10% increase every five years, (2) $200,000 annual payment as a community benefit contribution, and (3) 3% of the Gross Receipts from all beverages sold at the driving range with a minimum guarantee of $200,000 annually, with a 10% increase every five years. On an annual basis, ES CenterCal is also required to fund a capital reserve fund at a minimum of $160,000 for the driving range. In addition to the ground lease noted above, the City, acting as lessor, leases land under long-term, noncancelable lease agreements. The leases expire at various dates through 2034 and provide for renewal options of up to 15 years. At June 30, 2024, the City has $64,893,961 in both lease receivables and deferred inflows of resources in the General Fund. During the year ended June 30, 2024, the City recognized $201,514 and $1,859,684 in lease revenue and interest revenue, respectively, pursuant to all of its lease contracts. Total future minimum lease payments to be received under lease agreements are as follows: Year Ending June 30, Principal 2025 $ 96,130 2026 100,791 2027 108,467 2028 242,570 2029 299,238 2030-2034 1,868,913 2035-2039 2,648,298 2040-2044 3,950,791 2045-2049 5,355,752 2050-2054 7,284,782 2055-2059 9,600,173 2060-2064 12,367,597 2065-2069 15,663,084 2070-2072 5,307,375 Total $ 64,893,961 Interest Total $ 1,714,217 1,714,649 1,711,025 1,704,354 1,696,689 8,353,346 8,055,577 7,620,239 7,016,436 6,189, 735 5,084,290 3,644,993 1,807,423 114,624 $ 56,427,597 $ 1,810,347 1,815,440 1,819,492 1,946,924 1,995,927 10,222,259 10,703,875 11,571,030 12,372,188 13,474,517 14,684,463 16,012,590 17,470,507 5,421,999 $ 121,321,558 (64) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 5 PUBLIC -PRIVATE PARTNERSHIP In February 2021, together with the ground lease agreement with ES CenterCal, the City entered into a public -private partnership (PPP) arrangement with Topgolf, under which Topgolf will make certain improvements to, operate, maintain and retain the net profits from the City's Golf Course Facility during the term of the PPP arrangement, which commenced upon Topgolf's completion of the Golf Course Facility in April 2022 and is conterminous with the term of the ES CenterCal ground lease of potentially 50 years, unless earlier terminated. At the end of the arrangement, operation of the Golf Course Facility will be transferred to the City. The City reports the improvements to the Golf Course Facility as capital assets with a carrying amount and a related deferred inflow of resources of $6,177,255 as of June 30, 2024. At the end of each year during the PPP arrangement, Topgolf will remit $20,000 per annum to the City, with a 10% every five years. At June 30, 2023, the City has recognized a PPP receivable and a deferred inflow of resources in the amount of $764,150. The discount rate used to measure the receivable was 2.64%. The agreement requires variable payments related to revenue sharing arrangements based on future Gross Receipts from all beverages sold by Topgolf at the Golf Course Facility. Those variable payments are recognized as inflows of resources in the period in which the obligation for those payments relate. NOTE 6 NOTES AND LOANS RECEIVABLES Residential Rehabilitation Program The balance of notes receivable in the nonmajor governmental funds consists of minor home repair loans made to qualifying homeowners residing within the City. The balance at June 30, 2024, was $49,405. Residential Rehabilitation Program: CDBG Loans Total Balance Balance June 30, 2023 Additions Deletions June 30, 2024 49,405 $ - $ - $ 49,405 $ 49,405 $ - $ $ 49,405 (65) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 7 INTERFUND ACTIVITIES Fund Financial Statements Due From/To Other Funds At June 30, 2024, the City had the following due from/to other funds: Due to Other Funds Nonmajor Governmental Funds Due From Other Funds General Fund $ 3,697,684 The interfund amounts from the General Fund to the Nonmajor Governmental Funds and the Nonmajor Enterprise Fund are for short-term loans to cover operations. Advance From/To Other Funds At June 30, 2024, the City has the following advance from/advance to other funds: Advance From Other Funds Nonmajor General Governmental Advance to Other Funds Fund Fund Total Internal Service Fund $ 5,330,745 $ - $ 5,330,745 General Fund - 4,729,994 4,729,994 Total $ 5,330,745 $ 4,729,994 $ 10,060,739 • Advance from Equipment Replacement Internal Service Fund to fund cash flows in the previously reported Golf Course Enterprise Fund, which was absorbed into the General Fund in fiscal year 22-23. • Advance from General Fund to Capital Improvement Nonmajor Capital Projects Funds to fund the Plunge rehabilitation capital project. Transfers In/Out At June 30, 2024, the City had the following transfers in/out, which arise in the normal course of operations: Transfers Out Governmental Funds: General Fund Nonmajor Governmental Funds Proprietary Funds: Internal Service Funds Total Transfers In Governmental Funds Proprietary Funds Pension Obligation Nonmajor General Bonds Debt Governmental Internal Fund Service Fund Funds Sewer Service Total $ $ 9,497,707 $ 12,581,003 $ 1,050,500 - 3,300,730 $ 555,744 $ 22,634,454 - 4,351,230 - - - 147,183 - 147,183 $ 1,050,500 $ 9,497,707 $ 15,881,733 $ 447,183 $ 555,744 $ 27,132,867 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 7 INTERFUND ACTIVITIES (CONTINUED) Fund Financial Statements (Continued) Transfers In/Out (Continued9 Administratively, resources may be transferred from one City fund to another. The City made the following transfers: • The General Fund transferred $151,973 to Federal Grants Nonmajor Special Revenue Fund for expenditures that are not covered by the grants due to changes in the grant agreements. • The General Fund transferred $9,497,707 to the Pension Obligation Bonds Debt Service Fund for debt service payments. • The General Fund transferred $12,132,500 to Capital Improvement Nonmajor Capital Projects Fund to fund capital projects. • The General Fund transferred $200,000 to Senior Housing Nonmajor Special Revenue Fund to fund reserves for construction projects. • The General Fund transferred $96,530 to Special Revenues/Donations Nonmajor Special Revenue Fund for donations. • The General Fund transferred $555,744 to Equipment Replacement Internal Service Fund to fund capital projects. • The Special Revenues/Donations Nonmajor Special Revenue Fund transferred $1,000,500 to General Fund to fund capital projects. • The Special Revenues/Donations Nonmajor Special Revenue Fund transferred $2,500,730 to Capital Improvement Nonmajor Capital Projects Fund to fund capital projects. • The Traffic Safety Nonmajor Special Revenue Fund transferred $50,000 to General Fund to for eligible expenditures. • The Senior Housing Nonmajor Special Revenue Fund transferred $800,000 to Capital Improvement Nonmajor Capital Projects Fund to fund capital projects. • The Equipment Replacement Internal Service Fund transferred $147,183 to the Sewer Enterprise Fund to purchase capital assets. (67) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 8 CAPITAL ASSETS Governmental Activities A summary of changes in capital assets for the governmental activities for the year ended June 30, 2024 was as follows: Capital Assets, Not Being Depreciated: Land and Rights of Way Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated/Amortized: Buildings and Improvements Vehicles and Equipment Infrastructure Right -to -Use Lease Land Right -to -Use Lease Vehicles and Equipment Right -to -Use PPP Assets Subscription Assets Total Capital Assets, Being Depreciated/Amortized Less Accumulated Depreciation/Amortization: Buildings and Improvements Vehicles and Equipment Infrastructure Right -to -Use Lease Land Right -to -Use Lease Vehicles and Equipment Right -to -Use PPP Assets Subscription Assets Total Accumulated Depreciation/Amortization Total Capital Assets, Being Depreciated/Amortized, Net Governmental Activities Capital Assets, Net Governmental Activities Balance Balance June 30, 2023 Additions Deletions June 30, 2024 $ 35,522,020 $ - $ - $ 35,522,020 4,384,297 12,058,729 (5,862,173) " 10,580,853 39,906,317 12,058,729 (5,862,173) 46,102,873 40,465,566 956,179 24,724,699 1,562,989 96,225,299 3,509,903 212,866 - 41,421,745 (609,552) 25,678,136 99,735,202 212,866 149,874 38,104 187,978 6,834,835 - 6,834,835 1,259,844 703,785 (95,846) 1,867,783 169,872,983 6,770,960 (705,398) 175,938,545 (22,714,737) (890,191) - (23,604,928) (19,755,400) (1,000,265) 609,552 (20,146,113) (55,757,213) (2,598,553) - (58,355,766) (85,984) (43,259) (129,243) (107,660) (49,208) (156,868) (328,790) (328,790) - (657,580) (411,762) (545,189) 31,949 (925,002) (99,161,546) (5,455,455) 641,501 (103,975,500) 70,711,437 1,315,505 (63,897) 71,963,045 $ 110,617,754 $ 13,374,234 $ (5,926,070) 118,065,918 * Amount includes abandonment of a project for $1,396,093. CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 8 CAPITAL ASSETS (CONTINUED) Governmental Activities (Continued) Depreciation and amortization expenses were charged to functions/programs of the governmental activities for the year ended June 30, 2024 as follows: General Government $ 1,291,692 Public Safety 433,200 Public Works 2,781,628 Community and Cultural 948,935 Total Depreciation and Amortization Expense $ 5,455,455 Business -Type Activities A summary of changes in capital assets for the business -type activities, not including the El Segundo Senior Citizen Housing Corporation, for the year ended June 30, 2024 was as follows: Capital Assets, Not Being Depreciated: Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated/Amortized: Buildings and Improvements Vehicles and Equipment Infrastructure Total Capital Assets, Being Depreciated/Amortized Less Accumulated Depreciation/Amortization: Buildings and Improvements Vehicles and Equipment Infrastructure Total Accumulated Depreciation/Amortization Total Capital Assets, Being Depreciated/Amortized, Net Business -Type Activities Capital Assets, Net Business -Type Activities, Not Including the Corporation Balance Balance June 30, 2023 Additions Deletions June 30, 2024 $ 14,584 $ 1,931,251 14,584 1,931,251 3,294,505 - 1,447,059 667,880 61,893,356 40,181 66,634,920 708,061 $ 1,945,835 1,945,835 3,294,505 (49,885) 2,065,054 61,933,537 (49,885) 67,293,096 (3,294,505) - (3,294,505) (871,654) (82,286) 49,885 (904,055) (40,145,251) (667,124) - (40,812,375) (44,311,410) (749,410) 49,885 (45,010,935) 22,323,510 (41,349) - 22,282,161 $ 22,338,094 $ 1,889,902 $ - $ 24,227,996 CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 8 CAPITAL ASSETS (CONTINUED) Business -Type Activities (Continued) Depreciation and amortization expenses for business -type activities, not including the Corporation, for the year ended June 30, 2024, was charged as follows: Water $ 266,693 Sewer 482,717 Total Depreciation and Amortization Expense $ 749,410 Blended Component Unit A summary of changes in capital assets for the El Segundo Senior Citizen Housing Corporation for the year ended December 31, 2023, was as follows: Capital Assets, Being Depreciated: Buildings and Improvements Furniture and Equipment Total Capital Assets, Being Depreciated Less Accumulated Depreciation: Buildings and Improvements Furniture and Equipment Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Total Capital Assets, Net El Segundo Senior Citizen Housing Corporation Balance January 1, 2023 Additions $ 1,046,041 $ - $ 321,057 17,585 1,367,098 17,585 (715,813) (30,422) (297,493) (5,870) (1,013,306) (36,292) Balance Deletions December 31, 2023 $ 1,046,041 338,642 1,384,683 (746,235) (303,363) (1,049,598) 353,792 (18,707) 335,085 $ 353,792 $ (18,707) $ $ 335,085 Depreciation expenses for the Corporation for the fiscal year ended December 31, 2023, was $36,292. (70) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 9 LONG-TERM LIABILITIES A summary of changes in long-term liabilities for the year ended June 30, 2024, was as follows: Balance Balance Due within Due in more June 30, 2023 Additions Deletions June 30, 2024 One Year than One Year Governmental Activities: Direct Borrowings: Financed Purchase Obligation: 2003 Parking Structure $ 1,855,162 $ $ 70,004 $ 1,785,158 $ 74,916 $ 1,710,242 Loan Obligation: 2005 Douglas Street Gap Closure Project 5,497,738 354,876 5,142,862 365,061 4,777,801 Other Long -Term Debt: Pension Obligation Bonds 133,743,378 6,546,420 127,196,958 6,570,720 120,626,238 Leases Payable 133,029 38,105 94,094 77,040 57,695 19,345 Subscriptions Payable 852,664 703,785 675,357 881,092 558,012 323,080 Claims Payable 20,590,000 1,604,007 3,130,007 19,064,000 4,307,923 14,756,077 Compensated Absences 4,699,008 401,120 176,416 4,923,712 2,812,470 2,111,242 Total $ 167,370,979 $ 2,747,017 $ 11,047,174 $ 159,070,822 $ 14,746,797 $ 144,324,025 Balance Balance Due within Due in more June 30, 2023 Additions Deletions June 30, 2024 One Year than One Year Business -Type Activities: Direct Borrowings: Finance Purchase Obligation: Jet / Vacuum Truck $ - $ 667,878 $ 147,183 $ 520,695 $ 120,628 $ 400,067 Other Long -Term Debt: Pension Obligation Bonds 3,856,622 - 188,580 3,668,042 189,280 3,478,762 Compensated Absences 163,909 154,165 141,607 176,467 76,209 100,258 Total $ 4,020,531 $ 822,043 $ 477,370 $ 4,365,204 $ 386,117 $ 3,979,087 Typically, the General Fund has been used to liquidate the liability for governmental activities compensated absences, the finance purchase obligation, leases payable, and subscriptions payable. The Pension Obligation Bonds Debt Service Fund has been used to liquidate the Pension Obligation Bonds. The Liability Insurance and Workers' Compensation Internal Service Funds has been used to liquidate claims payable. The Nonmajor Facility Loan fDebt Service Fund has been used to liquidate the loan obligation. The Water and Sewer Enterprise Funds typically liquidated the liability for business -type compensated absences. (71) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 9 LONG-TERM LIABILITIES (CONTINUED) Financed Purchase Obligations Governmental Activities - 2003 Parking Structure On June 18, 2002, the City entered into a financed purchase agreement with 612 Twin Holdings, LLC to acquire a two story, three level parking structure and certain retail space. The terms of the agreement include an initial payment of $1,100,000, monthly 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 amount outstanding at June 30, 2024 totaled $1,785,158. The annual debt service requirements on the finance purchase agreement are as follows: Year Ending June 30 2025 2026 2027 2028 2029 2030-2034 2035-2038 Total Business-Tvoe Activities Principal $ 74,916 80,172 85,797 91,816 98,258 604,892 749,307 $ 1,785,158 Jet / Vacuum Truck Interest Total $ 119,084 113,828 108,204 102,184 95,742 365,108 115,527 $ 1,019,677 $ 194,000 194,000 194,001 194,000 194,000 970,000 864,834 $ 2,804,835 On February 6, 2024, the City entered into a financed purchase agreement with Bank of America to acquire sewer equipment. Payments are due annually in the amount of $147,183 February each year at an annual interest rate of 5% with the note payable maturing on February 23, 2028. The amount outstanding at June 30, 2024 totaled $520,695. The annual debt service requirements on the finance purchase agreement are as follows: Year Ending June 30, Principal Interest Total 2025 $ 120,628 $ 26,555 $ 147,183 2026 126,780 20,403 147,183 2027 133,246 13,938 147,184 2028 140,041 7,142 147,183 Total $ 520,695 $ 68,038 $ 588,733 (72) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 9 LONG-TERM LIABILITIES (CONTINUED) Loan Obligation 2005 Douglas Street Gap Closure Project On September 1, 2005, the City entered into a loan 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 payments over a 30-year period starting on February 1, 2006, at an interest rate of 2.87% per annum. Interest payments on the loan obligation are due on February 1 and August 1 of each year. The amount outstanding at June 30, 2024 totaled $5,142,862. The annual debt service requirements on the loan are as follows: Year Ending June 30, Principal 2025 $ 365,061 2026 375,538 2027 386,316 2028 397,404 2029 408,809 2030-2034 2,226,919 2035-2036 982,815 Total $ 5,142,862 Pension Obligation Bonds Interest Total $ 142,361 131,734 120,801 109,555 97,986 304,431 28,406 $ 935,274 $ 507,422 507,272 507,117 506,959 506,795 2,531,350 1,011,221 $ 6,078,136 On May 26, 2021, the City issued $144,135,000 of Taxable Pension Obligation Bonds, Series 2021 (POB), to fund a portion of the City's obligations to CalPERS for the unfunded actuarial accrued liability with respect to the City's miscellaneous and safety defined benefit pension plans. The City allocated the POB between governmental activities and business - type activities as follows: Governmental Activities $ 127,196,958 Business -Type Activities 3,668,042 Total $ 130,865,000 The POB is due from 2022 through 2040 in annual principal installments of $6,535,000 to $9,265,000. Interest rates range from 0.191 % to 2.897% and interest is payable semi- annually on January 1 and July 1. The total outstanding principal as of June 30, 2024, is $130,865,000. The total annual debt service requirements on the POB are as follows: (73) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 9 LONG-TERM LIABILITIES (CONTINUED) Pension Obliaation Bonds (Continued Year Ending June 30, Principal 2025 $ 6,760,000 2026 6,805,000 2027 6,865,000 2028 6,945,000 2029 7,055,000 2030-2034 37,440,000 2035-2039 42,465,000 2040-2041 16,530,000 Total $ 130,865,000 Interest $ 2,990,144 2,937,614 2,863,955 2,769,475 2,655,799 10,989,188 5,773,901 475,684 $ 31,455,760 Total $ 9,750,144 9,742,614 9,728,955 9,714,475 9,710,799 48,429,188 48,238,901 17,005,684 $ 162,320,760 The annual debt service requirements will be allocated 97% to governmental activities and 3% to business -type activities. Leases Payable The City leases land, vehicles, and equipment for various terms under long-term, noncancelable lease agreements. The leases expire at various dates through 2027 and provide for renewal options ranging up to one year. The right -to -use lease assets and the related accumulated amortization are detailed in Note 8. Total future minimum lease payments under lease agreements are as follows: Year Ending June 30, 2025 2026 2027 Total Governmental Activities Principal Interest $ 57,695 $ 787 15,066 115 4,279 7 $ 77,040 $ 909 Total $ 58,482 15,181 4,286 $ 77,949 Subscription -Based Information Technology Arrangements The City entered into subscription based -information technology arrangements (SBITAs) for various software. The SBITA arrangements expire at various dates through 2028. The subscription assets and the related accumulated amortization are detailed in Note 8. The future subscription payments under SBITA agreements are as follows: Year Ending June 30, 2025 2026 2027 2028 Total Governmental Activities Principal $ 558,012 218,239 51,191 53,650 $ 881,092 Interest $ 7,342 4,159 1,277 653 $ 13,431 Total $ 565,354 222,398 52,468 54,303 $ 894,523 (74) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS Summary The following is the summary of the net pension (asset) liability and related deferred outflows of resources and deferred inflows of resources at June 30, 2024, and pension (credit) 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 A rf i,iif i- Artivifi- TM.I $ 8,473,768 $ 1,234,416 $ 9,708,184 46,216,911 - 46,216,911 343,735 - 343,735 $ 55,034,414 $ 1,234,416 1 $ 56,268,830 $ 12,173,762 $ 1,773,413 $ 13,947,175 22,360,535 - 22,360,535 1,794,115 - 1,794,115 $ 36,328,412 $ 1,773,413 $ 38,101,825 31,851,954 - 31,851,954 $ 5,497,669 $ 800,291 $ 6,297,960 23,836,889 - 23,836,889 431,908 - 431,908 $ 29,766,466 $ 800,291 1 $ 30,566,757 The City elected to contribute to a trust as a means to provide additional funding for the CalPERS Miscellaneous and Safety defined benefit pension plans. The General Fund contains the Section 115 Trust restricted investments balance of $5,915,375 as of June 30, 2024. (75) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) General Information about the Pension Plan Plan Descriptions The City contributes to the California Public Employees Retirement System (CaIPERS), an agent multiple -employer defined benefit pension plan for miscellaneous employees and a cost -sharing multiple -employer defined benefit plan for safety employees. CaIPERS 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. CaIPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information as well as CaIPERS' audited financial statements on the CaIPERS website. under Forms and Publications. Benefits Provided CaIPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. A classic CaIPERS member or PEPRA Safety member becomes eligible for service retirement upon attainment of age 50 with at least five 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 CaIPERS system are part of the PEPRA plan. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five 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. (76) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) (Continued) General Information about the Pension Plan (Continued) Benefits Provided (Continued) The following are the benefit provisions for each plan: Miscellaneous Miscellaneous PEPRA Miscellaneous Second Tier Miscellaneous Rate Plan Rate Plan Rate Plan Hire Date Prior to Prior to On or After 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 Years Minimum 50 Years Minimum 52 Years Safety - Police/Fire Safety PEPRA Safety Second Tier Safety Rate Plan Rate Plan Rate Plan Hire Date Prior to October 6, 2012 Benefit Formula Police - 3% @ 50 Fire - 3% @ 55 Benefit Vesting Schedule 5 Years Service Benefit Payments Monthly for Life Retirement Age Minimum 50 Years Between October 6, 2012 to December31, 2012 Classic Member Police - 3% @ 55 5 Years Service Monthly for Life Minimum 50 Years On or After January 1, 2013 New Member 2.7% @ 57 5 Years Service Monthly for Life Minimum 50 Years Participants are eligible for nonindustrial disability retirement if the participant becomes disabled and has at least five years of credited service. There is no special age requirement. The standard nonindustrial 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% of final compensation. (77) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) 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 credited each 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%. Employee Covered by Benefit Terms At June 30, 2023, the measurement date, the following employees were covered by the benefit terms under the miscellaneous plans: Active Employees Inactive Employees or Beneficiaries Currently Receiving Benefits Inactive Employees Entitled to But Not Yet Receiving Benefits Total Contributions Miscellaneous Plans 173 353 401 927 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 CaIPERS' 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. (78) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) (Continued) General Information about the Pension Plan (Continued) Contributions (Continued) The required contribution rates are as follows: Year Ended June 30, 2024 Miscellaneous Plans Classic PEPRA Employer Contribution Rate 10.19% 7.83% Employee Contribution Rate 7.00% 6.75% Year Ended June 30, 2023 Safety Plans Police - Tier 1 Police - Tier 2 Police PEPRA Fire - Tier 1 Fire - PEPRA Employer Contribution Rate 29.09% 26.11% 14.50% 26.11% 14.50% Employee Contribution Rate 9.00% 9.00% 13.75% 9.00% 13.75% Employer contributions for the miscellaneous and safety plans for the year ended June 30, 2024, was $1,457,661 and $3,059,125, respectively. 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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 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 of the miscellaneous and safety plans are as follows: Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Projected Salary Increases Mortality Rate Table Post Retirement Benefit Increase Entry Age Normal 6.90% 2.50% Varies by Entry Age and Service (1) (2) (1) The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post -retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CaIPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CaIPERS website. (2) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter. (79) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) 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, CaIPERS took into account both short- term and long-term market return expectations. Using historical returns all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows: Assumed Asset Real Return Asset Class 1 Allocation (a) (b) Global Equity - Cap -weighted 30.00 % 4.45 % Global Equity - Non -Cap -weighted 12.00 3.84 Private Equity 13.00 7.28 Treasury 5.00 0.27 Mortgage -backed Securities 5.00 0.50 Investment Grade Corporates 10.00 1.56 High Yield 5.00 2.27 Emerging Market Debt 5.00 2.48 Private Debt 5.00 3.57 Real Assets 15.00 3.21 Leverage (5.00) (0.59) Total 100.00 % (a) An expected inflation of 2.30% used for this period (b) Figures are based on the 2021 Asset Liability Management study. Discount Rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. M CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) (Continued) Changes 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. Balance - June 30, 2022 (Measurement Date) Changes Recognized for the Measurement Period: Service Cost Interest on the Total Pension Liability Changes of Benefit Terms Differences Between Expected and Actual Experience Changes of Assumptions Plan to Plan Resource Movement Contributions from the Employer Contributions from Employee Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Administrative Expense Net Changes Balance - June 30, 2023 (Measurement Date) Miscellaneous Plan Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset) (a) (b) (c) _ (a) - (b) $ 136,657,208 $ 124,367,804 $ 12,289,404 2,247,119 - 2,247,119 9,237,160 9,237,160 243,771 243,771 47,648 47,648 1,673,991 (1,673,991) 1,031,097 (1,031,097) 7,504,293 (7,504,293) (8,400,601) (8,400,601) - (91,454) 91,454 3,375,097 1,717,326 1,657,771 $ 140,032,305 $ 126,085,130 $ 13,947,175 Proportionate Share of Net Pension LiabilitV and Pension Expense 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 Proportionate Share of Net Pension Liability Balance at June 30, 2023 (Measurement Date) $ 22,360,535 The City's net pension liability for the safety plan is measured as the proportionate share of the net pension liability. The City's proportionate share of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. (81) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) (Continued) Changes in the Net Pension Liability (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continueg1 The City's proportionate share of the net pension liability was as follows: Safety Plan June 30, 2022 Measurement Date 0.2149 % June 30, 2023 Measurement Date 0.2991 Change - Increase (Decrease) 0.0843 % 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 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage -point lower (5.90%) or one percentage -point higher (7.90%) than the current rate: Plan's Net Pension Liability/(Asset) Discount Current Discount Rate - 1 % Discount Rate + 1 % (5.90%) Rate (6.90%) (7.90%) Miscellaneous Plan $ 31,698,775 $ 13,947,175 $ (671,480) Safety Plan $ 69,951,798 $ 22,360,535 $ (16,548,710) Pension Plan Fiduciary Net Position Detailed information about the plan's fiduciary net position is available in the separately issued CaIPERS financial report. See CaIPERS website for additional information. (82) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense in the amounts of $6,297,960 and $23,836,889 for the miscellaneous plans and safety plans, respectively. As of year ended June 30, 2024, the City has deferred outflows and deferred inflows of resources related to the pension plans as follows: 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 Pension Contribution Made After Measurement Date Difference Between Expected and Actual Experience Changes of Assumptions Difference Between Projected and Actual Earnings on Pension Plan Investments Change in Employer's Proportion Differences Between the Employer's Contributions and Employer's Proportionate Share of Contributions Total Miscellaneous Plan Deferred Deferred Outflows Inflows of Resources of Resources $ 1,457,661 $ 57,814 501,501 7,691,208 - $ 9,708,184 $ - Safety Plan Deferred Deferred Outflows Inflows of Resources of Resources $ 3,059,125 $ - 1,641,675 (140,545) 1,304,991 - 3,060,033 - 17,711,369 (16,413,121) 19,439,718 (15,298,288) $ 46,216,911 $ (31,851,954) $1,457,661 and $3,059,125 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. (83) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) California Public Employees' Retirement System (CaIPERS) (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows: Fiscal Year Endina June 30. 2025 2026 2027 2028 Total Deferred Deferred Outflows/ Outflows/ (Inflows) of (Inflows) of Resources Resources Measurement Safety Plan Plan $ 2,424,074 1,514,962 4,137,881 173,606 $ 8,250,523 $ 7,706,462 2,613,800 900,159 85,411 $ 11,305,832 Payable to the Pension Plan At June 30, 2024, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2024. 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 CaIPERS 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. (84) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) Public Agency Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued) Plan Description (Continued) 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 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 CalPERS on or after September 30, 2008 • Age 55 with 15 years continuous City service After Plan Freeze: • Retire from CalPERS • Age 55 • Does not need to retire directly from the City Retirement Benefit Target of 2.5% @ 55 less CalPERS 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 (85) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) Public Agency Retirement System (PARS) (Continued) General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms At September 30, 2023, the measurement date, the following employees were covered by the benefit terms: Active Employees 4 Inactives Entitled to But Not Yet Receiving Benefits 6 Inactives Currently Receiving Benefits 16 Total 26 Contributions and Funding Policy 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, or 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, 2023, was based on an actuarial valuation as of June 30, 2022. For the year ended June 30, 2024, the City's contributions totaled $260,000. 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, 2023, using an actuarial valuation as of June 30, 2022. A summary of principal assumptions and methods used to determine the net pension liability is as follows: Actuarial Cost Method Actuarial Assumptions: Discount Rate Investment Return Inflation Mortality, Disability, and Termination Mortality Improvement Salary Increases Entry Age Normal 5.25% 5.25% 2.50% CaIPERS 2000-2019 experience study Projected fully generational with Scale MP-2021 2.75% CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) Public Agency Retirement System (PARS) (Continued) Net Pension Liability (Continued) rWczrnunt Rnta The discount rate used to measure the total pension liability was 5.25%. 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. The table below reflects target allocation and expected real rate of return by asset classes for the moderate portfolio selected by the City: Asset Class Global Equity Fixed Income Cash Total Assumed Long -Term Rate of Inflation Expected Long -Term Net Rate of Return, Rounded Target Expected Real Allocation Rate of Return 60.00 % 35.00 5.00 100.00 % 4.56 % 0.78 (0.50) 2.50 % 5.25 % Subsequent Events There were no subsequent events that would materially affect the results in this disclosure. (87) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) Public Agency Retirement System (PARS) (Continued) Changes in Net Pension Liability The table on the following page shows the changes in net pension liability recognized over the measurement period: Balance - September 30, 2022 (Measurement Date) Changes Recognized for the Measurement Period: Interest on the Total Pension Liability Contributions from the Employer Net Investment Income Benefit Payments, Including Refunds of Employee Contributions Administrative Expense Net Changes Balance - September 30, 2023 (Measurement Date) Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset) (a) (b) (c) _ (a) - (b) $ 3,119,525 $ 1,183,298 $ 1,936,227 159,346 - 159,346 - 189,000 (189,000) 118,789 (118,789) (168,711) (168,711) - - (6,331) 6,331 (9,365) 132,747 (142,112) $ 3,110,160 $ 1,316,045 $ 1,794,115 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 5.25%, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage -point lower (4.25%) or one percentage- point higher (6.25%) than the current rate: Discount Rate Current Discount Rate -1 % Discount 1 % (4.25%) Rate (5.25%) (6.25%) Plan's Net Pension Liability $ 2,176,681 $ 1,794,115 $ 1,476,960 Pension Plan Fiduciary Net Position Detailed information about the PARS California defined benefit pension program's fiduciary net position, the most recent available audited information is as of June 30, 2023, and is as follows: total assets: $634,431,429 (cash and cash equivalents of $16,175,362, contributions receivable of $682,616, investments of $617,056,325, and investment income receivable of $517,126); total accrued liabilities: $44,621; and fiduciary net position: $634,386,808. This audited information is on an accrual basis of accounting and investments are reported at fair value. CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 10 RETIREMENT PLANS (CONTINUED) Public Agency Retirement System (PARS) (Continued) Pension Expense, Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City incurred pension expense of $431,908 and reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Pension Contribution Made After Measurement Date Net Difference Between Projected and Actual Earning on Pension Plan Investments Total Deferred Deferred Outflows of Inflows of Resources Resources $ 260,000 83,735 $ 343,735 $260,000 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Deferred Outflows/ (Inflows) of Fiscal Year Ending June 30, Resources 2025 $ 20,313 2026 21,788 2027 52,098 2028 (10,464) Total $ 83,735 Payable to the Pension Plan At June 30, 2024, the City had no outstanding amount of contributions to the pension plan required for the year ended June 30, 2024. CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 OTHER POSTEMPLOYMENT HEALTH BENEFITS At June 30, 2024, 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 $ 2,208,572 $ 114,304 $ 2,322,876 Net Other Postemployment Benefit Liability $ 30,129,800 $ 1,559,351 $ 31,689,151 Deferred Inflows of Resources $ 803,813 $ 41,601 $ 845,414 OPEB Expense $ 3,076,473 $ 159,221 $ 3,235,694 General Information About the OPEB Plan Plan Description The City provides postretirement medical benefits under an agent multiple -employer defined benefit plan to employees who retire directly from the City under CalPERS 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 CalPERS 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 from CalPERS on their website www.calpers.ca.gov or by writing or calling the plans at the following address or telephone number: CalPERS 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. Funding 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 year ended June 30, 2024, the City's contributions totaled $4,176,556. M CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 OTHER POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED) General Information About the OPEB Plan (Continued) Employees Covered At June 30, 2024, 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 352 230 582 Net OPEB Liability The City's total OPEB liability was measured as of June 30, 2024, and was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. A summary of the principal assumptions and methods used to determine the total OPEB liability is shown below. 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 6.25% - Pre -funded through CalPERS CERBT Asset Strategy #1 Inflation 2.50% Salary Increases 2.75% per year Mortality Improvement Projected fully generational with Scale MP-2021 Medical Trend Non -Medicare 8.50% for 2025, Medicare (Non -Kaiser): 7.50% for 2025, Medicare (Kaiser) 6.25% for 2025, all decreasing to an ultimate rate of 3.45% in 2076. The actuarial assumptions used in the June 30, 2023 valuation were based on a standard set of assumptions the actuary has used for similar valuations, modified as appropriate for the City. CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 OTHER POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED) Net OPEB Liability (Continued) Actuarial Methods and Assumptions (Continuedg 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 CaIPERS publication for the pension fund: Asset Class CERBT Strategy 1: Global Equity Fixed Income TIPS Commodities REITs Total Assumed Long -Term Rate of Inflation Expected Long -Term Net Rate of Return, Rounded Discount Rate Expected Real Allocation Rate of Return 49.00 % 4.56 % 23.00 1.56 5.00 (0.08) 3.00 1.22 20.00 4.06 100.00 % 2.50% 6.25% The discount rate used to measure the total OPEB liability is 6.25%. 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. (92) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 OTHER POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED) Changes in Net OPEB Liability Balance - June 30, 2023 (Measurement Date) Changes Recognized for the Measurement Period: Service Cost Interest on the Net OPEB Liability Change in Benefit Terms 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 Balance - June 30, 2024 (Measurement Date) Increase (Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) (a) (b) (c) = (a) - (b) $ 62,510,785 $ 30,591,111 $ 31,919,674 1,425,839 - 1,425,839 3,865,934 - 3,865,934 587,415 587,415 957,038 - 957,038 440,068 - 440,068 - 4,176,556 (4,176,556) - 3,359,005 (3,359,005) (4,163,355) (4,163,355) - (28,746) 28,746 3,112,939 3,343,460 (230,521) $ 65,623,724 $ 33,934,571 $ 31,689,153 Changes of Assumptions Medical plan at retirement assumed to be based on current election, updated medical trend rates, and PEMHCA minimum increases updated to 3.50% annually. Changes of Benefit Terms The following changes were made to the maximum City contributions towards retiree monthly medical premiums: • SPEA and PSSEA were increased from $1,650 to $1,850 • PMA was increased from $1,650 to $1,850 • Police was increased from $1,750 to $1,800 • Fire was decreased from $1,750 to $1,700 Subsequent Events There were no subsequent events that would materially affect the results presented in this disclosure. (93) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 OTHER POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED) Changes in Net OPEB Liability (Continued) 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 one -percentage point lower (5.25%) or one -percentage -point higher (7.25%) than the current discount rate: Net OPEB Liability Discount Rate -1% (5.25%) $ 39,335,984 Current Discount Rate (6.25%) $ 31.689.153 Discount Rate +1 % (7.25%) $ 25,290,187 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 one -percentage point lower (5.50% Non -Medicare, 4.65% Medicare Non -Kaiser, 3.60% Medicare Kaiser, decreasing to an ultimate rate of 2.75% in 2076) or one -percentage point higher (7.50% Non -Medicare, 6.65% Medicare Non -Kaiser, 5.60% Medicare Kaiser, decreasing to an ultimate rate of 4.75% in 2076) than the current healthcare cost trend rates: Net OPEB Liability Healthcare Cost Trend Rate -1 % $ 27,475,399 Current Rate $ 31,689,153 Healthcare Cost Trend +1 % $ 35,482,684 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2024, the City' recognized OPEB expense of $3,235,694. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Difference Between Expected and Actual Experience $ 1,030,641 Change of Assumptions 954,999 Net Difference Between Projected and Actual Earning on Pension Plan Investments 337,236 Total $ 2,322,876 $ 244,046 601,367 $ 845,413 (94) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 11 OTHER POSTEMPLOYMENT HEALTH BENEFITS (CONTINUED) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows: Fiscal Year Ending June 30, 2025 2026 2027 2028 2029 Total Deferred Outflows/ (Inflows) of Resources OPEB Plan $ 257,815 1,237,721 (90,776) (30,788) 103,491 $ 1,477,463 Payable to the OPEB Plan At June 30, 2024, the City had no outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2024. NOTE 12 DEFERRED COMPENSATION PLAN For the benefit of its employees, the City has established deferred compensation plans in accordance with the Internal Revenue Code (IRC) Section 457 and 401(a). Generally, the amount of compensation subject to deferral by a participant may not exceed the legal limits set by the IRC. Funds may be withdrawn by participants upon termination of employment, retirement, death, or an unforeseeable emergency. The City's contributions to the 401(a) plan for the year ended June 30, 2024, was $93,385. The City does not contribute to the 457 plan. The deferred compensation plan assets are held in a trust account for the sole benefit of the employees and their beneficiaries and have been excluded from the City's reported assets accordingly. (95) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 13 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 self-insurance retention, are insured through Independent Cities Risk Management Authority (ICRMA) up to $30,000,000. Workers compensation claims that exceed the limit are insured by ICRMA up to the California statutory limits for workers' compensation. 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, 2024, 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: Annual Claims Payable Fiscal Year Ending Beginning June 30, 2021 $ 16,187,000 June 30, 2022 June 30, 2023 17,430,000 20,590,000 Claims Payable Current Year Claims and Current Year Changes Claims Balance in Estimates Payments Ending 3,899,160 $ (2,656,160) $ _ 17,430,000 $ 6,735,199 (3,575,199) 20,590,000 1,604,007 (3,130,007) 19,064,000 Due within One Year 3,321,068 4,493,894 4,307,923 M CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 14 JOINT POWERS AGREEMENT 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 L.A. IMPACT. The net position of L.A. 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 L.A. IMPACT board of directors with respect to the use of these funds. Complete financial statements for L.A. IMPACT may be obtained at its administrative office at 5700 South Eastern Avenue Commerce, California 90040-2924. NOTE 15 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. (97) CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 16 CLASSIFICATION OF FUND BALANCES At June 30, 2024, fund balances are classified in the governmental funds as follows: Nonspendable: Advances to Other Funds Inventories Prepaids Total Nonspendable Restricted: Police Fire Public Works Economic Development Community and Cultural Opioid Crisis Mitigation Debt Service Pension Total Restricted Assigned: Police Fire Public Works Tobacco License Parks and Recreation Library Computer Refresh Capital Outlay Total Assigned Unassigned Total Fund Balance Pension Capital Obligation Improvement Nonmajor Total General Bonds Debt Capital Governmental Governmental Fund Service Fund Projects Fund Funds Funds $ 4,729,994 163,403 140,778 _ 5,034,175 100,369 5,915,375 6.015.744 8,037,527 $ 4,729,994 163,403 140,778 5,034,175 1,631,759 1,631,759 1,604,108 1,604,108 3,441,545 3,441,545 145,283 145,283 9,050,708 9,050,708 - 100,369 306,498 8,344,025 - 5,915,375 16,179,901 30,233,172 235,903 235,903 204,031 204,031 926,827 926,827 33,573 33,573 283,072 283,072 76,327 76,327 244,186 - 244,186 - 19,459,186 19,459,186 2,003,919 19,459,186 21,463,105 40,701,761 - (4,539,205) 36,162,556 $ 53,755,599 $ 8,037,527 $ 19,459,186 $ 11,640,696 $ 92,893,008 ME CITY OF EL SEGUNDO NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 NOTE 17 ACCOUNTING CHANGES Changes to or within Financial Reporting Entity Change in Fund Presentation from Maior to Nonmaior Capital Improvement Capital Project Fund previously did not meet the criteria to be reported as a major governmental fund. However, effective July 1, 2023, the fund met the criteria to be reported as a major fund and is reported as a major governmental fund for the fiscal year ended June 30, 2024. The effect of that change to or within the financial reporting entity is shown in the table below. Adjustments to Beginning Balances During fiscal year 2024, changes to or within the financial reporting entity for the implementation of GASB Statement No. 100 resulted in adjustments to beginning fund balance, as follows: June 30, 2023, As Previously Reported Change in Fund Presentation from Nonmajor to Major July 1, 2023, As Adjusted Capital Improvement Capital Projects Fund 5,855,027 $ 5,855,027 Nonmajor Governmental Funds 2b,U15,424 (5,855,027) $ 22,160,397 ME This page intentionally left blank REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) m CITY OF EL SEGUNDO BUDGETARY COMPARISON SCHEDULE - GENERAL FUND YEAR ENDED J U N E 30, 2024 REVENUES Taxes Licenses and Permits Intergovernmental Charges for Services Use of Money and Property Fines and Forfeitures Miscellaneous Total Revenues EXPENDITURES Current: General Government City Council City Treasurer City Clerk City Manager City Attorney Planning Building and Safety Administrative Services Nondepartmental Public Safety: Police Fire Animal Control Communications Center Public Works: Administration Government Buildings Engineering Streets Solid Waste Storm Drain Equipment Maintenance Community and Cultural: Recreation and Parks Library Health Capital Outlay Debt Service: Principal Retirement Interest Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Subscription Payable Issuance Transfers In Transfers Out Total Other Financing Uses NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final Variance with Final Budget Positive Actual (Negative) $ 58,729,050 $ 58,729,050 $ 64,404,087 $ 5,675,037 16,537,000 16,657,000 17,109,023 452,023 2,138,755 2,063,755 2,302,513 238,758 5,246,040 5,371,039 5,611,405 240,366 2,844,120 2,844,120 8,723,431 5,879,311 327,101 327,101 382,947 55,846 2,693,944 3,324,688 3,649,666 324,978 88,516,010 89,316,753 102,183,072 12,866,319 235,330 235,330 202,644 32,686 307,474 307,474 240,457 67,017 516,545 516,545 352,660 163,885 2,873,271 2,873,270 2,756,842 116,428 835,450 835,450 892,398 (56,948) 1,378,691 1,366,866 924,405 442,461 1,681,804 1,679,238 811,278 867,960 7,976,739 8,080,799 5,867,509 2,213,290 7,331,016 7,935,201 8,634,526 (699,325) 19,360,025 19,364,059 19,463,754 (99,695) 14,196,505 14,514,832 14,470,012 44,820 31,500 36,500 35,722 778 2,219,531 2,309,040 2,306,093 2,947 348,069 348,069 313,783 34,286 2,557,958 2,589,757 2,283,853 305,904 1,016,996 1,298,245 1,115,882 182,363 2,408,958 2,394,622 2,276,628 117,994 725,053 776,253 744,990 31,263 354,244 456,244 263,836 192,408 1,600,211 1,600,211 1,471,038 129,173 7,786,083 7,015,244 5,842,399 1,172,845 2,447,003 2,557,101 2,525,400 31,701 325,022 323,643 213,816 109,827 430,000 569,190 1,310,687 (741,497) - - 775,966 (775,966) - - 135,521 (135,521) 78,943,478 79,983,183 76,232,099 3,751,084 9,572,532 9,333,570 25,950,973 16,617,403 - - 741,890 741,890 50,000 50,000 1,050,500 (1,000,500) (17,330,206) (17,885,950) (22,634,454) 4,748,504 (17,280,206) (17,835,950) (20,842,064) 4,489,894 $ (7,707,674) $ (8,502,380) 5,108,909 $ 21,107,297 48,646,690 $ 53,755,599 See accompanying Note to Budgetary Comparison Schedule. (102) CITY OF EL SEGUNDO NOTE TO BUDGETARY COMPARISON SCHEDULE JUNE 30, 2024 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. 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. (103) CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS — CALPERS MISCELLANEOUS RATE PLAN LAST TEN MEASUREMENT PERIODS' California Public Employees' Retirement System (CaIPERS) — Miscellaneous Rate Plan Measurement Period Total Pension Liability: Service Cost Interest on Total Pension Liability 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 Other Miscellaneous Expense Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position - Beginning Plan Fiduciary Net Position - Ending (b) Plan Net Pension (Asset) 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 2022-23 2021-22 2020-21 2019-20 2018-19 $ 2,247,119 $ 2,395,337 $ 2,167,601 $ 2,088,245 $ 2,026,099 9,237,160 8,996,884 8,786,372 8,447,044 8,219,352 243,771 - - - - - 3,844,839 47,648 243,988 1,386,728 (221,184) (38,811) (8,400,601) (7,853,920) (7,452,811) (6,978,924) (6,762,739) 3,375,097 7,627,128 4,887,890 3,335,181 3,443,901 136,657,208 129,030,080 124,142,190 120,807,009 117,363,108 $ 140,032,305 $ 136,657,208 $ 129,030,080 $ 124,142,190 $ 120,807,009 $ 1,673,991 $ 1,424,177 $ 36,323,729 $ 3,584,857 $ 3,597,197 1,031,097 948,037 996,706 946,546 878,016 7,504,293 (10,344,392) 20,615,898 4,398,867 5,537,029 (8,400,601) (7,853,920) (7,452,811) (6,978,924) (6,762,739) 3,966 (127,504) (91,454) (87,387) (89,792) (124,138) (60,654) - - - 198 1,717,326 (15,913,485) 50,393,730 1,831,174 3,061,543 124,367,804 140,281,289 89,887,559 88,056,385 84,994,842 $ 126,085,130 $ 124,367,804 $ 140,281,289 $ 89,887,559 $ 88,056,385 $ 13,947,175 $ 12,289,404 $ (11,251,209) $ 34,254,631 $ 32,750,624 90.04% 91.01% 108.72% 72.41% 72.89% $ 15,064,145 $ 14,700,313 $ 14,246,696 $ 14,212,445 $ 12,851,508 92.59% 83.60%-78.97% 241.02% 254.84% 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 to 2021. In 2022, the discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%. There were no significant changes in assumptions in 2023. (104) CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS — CALPERS MISCELLANEOUS RATE PLAN (CONTINUED) LAST TEN MEASUREMENT PERIODS' California Public Employees' Retirement System (CaIPERS) — Miscellaneous Rate Plan Measurement Period Total Pension Liability: Service Cost Interest on Total Pension Liability 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 Other Miscellaneous 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 2017-18 2016-17 2015-16 2014-15 2013-14 $ 2,002,276 $ 2,022,687 $ 1,836,590 $ 1,892,820 $ 1,992,358 7,976,930 7,747,566 7,584,214 7,355,288 7,137,756 (464,769) 6,199,889 (1,728,307) 8,203 (813,832) (899,552) (1,400,892) (6,360,824) (5,830,361) (5,534,415) (5,121,477) (4,825,880) 3,161,816 9,325,949 2,986,837 997,432 4,304,234 114,201,292 104,875,343 101,888,506 100,891,074 96,586,840 $ 117,363,108 $ 114,201,292 $ 104,875,343 $ 101,888,506 $ 100,891,074 $ 3,291,215 $ 2,381,409 $ 2,189,606 $ 1,990,762 $ 2,229,759 905,313 975,818 850,845 883,340 1,271,008 6,839,662 8,294,674 375,088 1,743,059 11,605,717 (6,360,824) (5,830,361) (5,534,415) (5,121,477) (4,825,880) (198) (31,271) (256) 161,952 (125,728) (110,739) (47,032) (86,704) (238,760) - - 4,310,680 5,679,530 (2,166,164) (429,068) 10,280,604 80,684,162 75,004,632 77,170,796 77,599,864 67,319,260 $ 84,994,842 $ 80,684,162 $ 75,004,632 $ 77,170,796 $ 77,599,864 $ 32,368,266 $ 33,517,130 $ 29,870,711 $ 24,717,710 $ 23,291,210 72.42% 70.65% 71.52% 75.74% 76.91 % $ 12,875,891 $ 13,007,635 $ 12,983,105 $ 13,129,083 $ 13,163,041 251.39% 257.67% 230.07% 188.27% 176.94% 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: In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS 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% to 7.15%. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5% discount rate. (105) CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS — CALPERS SAFETY RATE PLAN LAST TEN MEASUREMENT PERIODS' California Public Employees' Retirement System (CaIPERS) — Safety Rate Plan Measurement Period 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 $ 3,906,152 $ 4,017,009 $ 4,084,900 18,561,546 18,050,364 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% 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% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative (expense). In 2014, amounts reported were based on the 7.5% discount rate. (106) CITY OF EL SEGUNDO SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS — CALPERS SAFETY RATE PLAN LAST TEN MEASUREMENT PERIODS' California Public Employees' Retirement System (CaIPERS) — Safety Rate Plan Measurement Period 2022-23 2021-22 2020-21 2019-20 City Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension (Asset) 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 0.2149% 0.2149%-1.2460% 1.7727% $ 22,360,535 $ 14,766,473 $ (43,727,085) $ 118,102,353 $ 14,502,235 $ 14,704,735 $ 13,463,828 $ 13,583,547 154.19% 100.42%-324.77% 869.45% 93.55% 95.60% 88.29% 75.10% 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 2020-21 to 2021-22: The discount rate was reduced from 7.15% to 6.90% and inflation rate decreased from 2.50% to 2.30% From Measurement Period 2021-22 to 2022-23: There were no significant changes in assumptions. (107) SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS — CALPERS SAFETY RATE PLAN (CONTINUED) LAST TEN MEASUREMENT PERIODS' California Public Employees' Retirement System (CaIPERS) — Safety Rate Plan Measurement Period 2018-19 2017-18 2016-17 City Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension (Asset) 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 1.7839% 1.1081 % 1.0764% $ 111,360,318 $ 106,775,573 $ 106,751,685 $ 12,490,385 $ 12,742,792 $ 12,697,818 891.57% 837.93% 840.71% 75.26% 75.26% 73.31% 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 2016-17 to 2017-18: The discount rate was reduced from 7.65% to 7.15%. From Measurement Period 2017-18 to 2020-21: There were no significant changes in assumptions. (108) CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS — PUBLIC AGENCY RETIREMENT SYSTEM DEFINED BENEFIT PLAN LAST TEN MEASUREMENT PERIODS' 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 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 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 Changes in Assumptions: Actuarial Valuation Date Fiscal Year Measurement Period Discount Rate Rate of Return on Assets Inflation Rate Mortality, Retirement, Disability, and Termination Mortality Improvement Scale 2023-24 2022-23 2021-22 2020-21 2019-20 2022-23 2021-22 2020-21 2019-20 2018-19 159,346 133,216 - 29,748 496,804 126,814 127,254 126,122 353,856 (18,261) - - 12,206 (168,711) (155,358) (142,018) (115,700) (97,156) (9,365) 3,119,525 504,410 2,615,115 338,652 2,276,463 5,499 2,270,964 28,966 2,241,998 $ 3,110,160 $ 3,119,525 $ 2,615,115 $ 2,276,463 $ 2,270,964 $ 189,000 $ 189,000 $ $ 158,000 $ 158,000 118,789 (236,068) 222,960 84,790 53,443 (168,711) (6,331) (155,358) (6,505) (142,018) (6,184) (115,700) (6,076) (97,156) (5,517) 132,747 (208,931) 74,758 121,014 108,770 1,183,298 1,392,229 1,317,471 1,196,457 1,087,687 $ 1,316,045 $ 1,183,298 $ 1,392,229 $ 1,317,471 $ 1,196,457 $ 1,794,115 $ 1,936,227 $ 1,222,886 $ 958,992 $ 1,074,507 42.31 % 37.93% 53.24% 57.87% 52.68% $ 471,484 $ 495,251 $ 592,104 N/A N/A 380.53% 390.96% 206.53% N/A N/A June 30, 2022 2023-24 October 1, 2022, to September 30, 2023 5.25% 5.25% 2.50% CalPERS 2000-2019 Experience Study Scale MP-2021 (109) CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - PUBLIC AGENCY RETIREMENT SYSTEM DEFINED BENEFIT PLAN (CONTINUED) LAST TEN MEASUREMENT PERIODS' 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 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 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 2018-19 2017-18 2016-17 2015-16 2014-15 2017-18 2016-17 2015-16 2014-15 2013-14 115,441 119,000 (62,152) - 187,849 - $ - $ 54,000 121,000 113,000 110,000 - 140,000 - 93,000 (196,140) (174,000) (141,000) (81,000) (37,000) 44,998 2,197,000 (55,000) 2,252,000 (20,000) 2,272,000 265,000 2,007,000 127,000 1,880,000 $ 2,241,998 $ 2,197,000 $ 2,252,000 $ 2,272,000 $ 2,007,000 $ 158,000 $ 236,000 $ - $ - $ - - - 16,000 167,000 193,000 69,282 91,000 72,000 (11,000) 52,000 (196,140) (5,455) (174,000) (5,000) (141,000) (5,000) (81,000) (5,000) (37,000) (5,000) 25,687 148,000 (58,000) 70,000 203,000 1,062,000 914,000 972,000 902,000 699,000 $ 1,087,687 $ 1,062,000 $ 914,000 $ 972,000 $ 902,000 $ 1,154,311 $ 1,135,000 $ 1,338,000 $ 1,300,000 $ 1,105,000 48.51 % 48.34% 40.59% 42.78% 44.94% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — CALPERS MISCELLANEOUS RATE PLAN LAST TEN FISCAL YEARS' California Public Employees' Retirement System (CaIPERS) — Miscellaneous Rate Plan Fiscal Year 2023-24 2022-23 2021-22 2020-212 2019-20 Actuarially Determined Contribution $ 1,457,661 $ 1,667,117 $ 1,420,434 $ 965,277 $ 3,695,146 Contributions in Relation to the Actuarially Determined Contribution (1,457,661) (1,667,117) (1,420,434) (33,525,869) (3,695,146) Contribution Deficiency (Excess) $ - $ - $ - $ (32,560,592) $ - Covered Payroll $ 15,064,145 $ 14,700,313 $ 14,246,696 $ 10,498,129 $ 14,446,483 Contributions as a Percentage of Covered Payroll 9.68% 11.34% 9.97% Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' informatior will be displayed as it becomes available. 2 Determined for the nine month period ended on June 30 (fiscal year-end). Notes to Schedule: Valuation Date 6/30/2021 6/30/2020 6/30/2019 319.35% 25.58% 6/30/2018 6/30/2018 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.50% 2.50% 2.50% 2.50% Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 6.80% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.00% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (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) 2% @ 55, 2% @ 60, and 2% @ 62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted by the CaIPERS Board. CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — CALPERS MISCELLANEOUS RATE PLAN (CONTINUED) LAST TEN FISCAL YEARS' California Public Employees' Retirement System (CaIPERS) — Miscellaneous Rate Plan Fiscal Year 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially Determined Contribution $ 3,421,223 $ 2,712,223 $ 2,360,497 $ 2,267,956 $ 2,047,988 Contributions in Relation to the Actuarially Determined Contribution (3,728,014) (3,291,215) (2,360,497) (2,267,956) (2,047,988) Contribution Deficiency (Excess) $ (306,791) $ (578,992) $ - $ - $ - Covered Payroll $ 13,136,731 $ 12,842,526 $ 11,980,872 $ 12,484,558 $ 12,279,995 Contributions as a Percentage of Covered Payroll 28.38% 25.63% 19.70% 18.17% 16.68% 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 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.625% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (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) 2% @ 55, 2% @ 60, and 2% @ 62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted by the CaIPERS Board. CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — CALPERS SAFETY RATE PLAN LAST TEN FISCAL YEARS' California Public Employees' Retirement System (CaIPERS) — Safety Rate Plan Fiscal Year 2023-24 2022-23 2021-22 2020-212 2019-20 Actuarially Determined Contribution $ 3,059,125 $ 3,518,856 $ 3,186,142 $ 1,955,086 $ 10,830,665 Contributions in Relation to the Actuarially Determined Contribution (3,059,125) (3,518,856) (3,186,142) (112,915,194) (10,830,665) Contribution Deficiency (Excess) $ - $ - $ - $ (110,960,108) $ Covered Payroll $ 14,502,235 $ 14,704,735 $ 13,463,828 $ 10,018,467 $ 13,606,528 Contributions as a Percentage of Covered Payroll 21.09% 23.93% 23.66% 1127.07% 79.60% Historical information is presented for measurement periods for which GASB 68 is applicable. Additional years' information will be displayed as it becomes available. 2 Determined for the nine month period ended on June 30 (fiscal year-end). Notes to Schedule: Valuation Date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2018 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.30% 2.30% 2.50% 2.50% 2.50% Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 6.80% (3) 7.00% (3) 7.00% (3) 7.00% (3) 7.00% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (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) 3% @ 50, 3% @ 55, and 2.7% @ 57 (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted by the CaIPERS Board. CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — CALPERS SAFETY RATE PLAN (CONTINUED) LAST TEN FISCAL YEARS' California Public Employees' Retirement System (CaIPERS) — Safety Rate Plan Fiscal Year 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially Determined Contribution $ 9,186,753 $ 8,480,050 $ 5,282,029 $ 6,581,713 $ 6,355,099 Contributions in Relation to the Actuarially Determined Contribution (10,424,853) (8,500,586) (5,282,029) (6,581,713) (6,355,099) Contribution Deficiency (Excess) $ (1,238,100) $ (20,536) $ - $ - $ - Covered Payroll $ 12,668,674 $ 12,614,944 $ 12,410,252 $ 13,711,733 $ 13,863,160 Contributions as a Percentage of Covered Payroll 82.29% 67.39% 42.56% 48.00% 45.84% 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 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.625% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (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) 3% @ 50, 3% @ 55, and 2.7% @ 57 (5) Mortality assumptions are based on mortality rates resulting from the most recent CaIPERS Experience Study adopted by the CaIPERS Board. CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — PUBLIC AGENCY RETIREMENT SYSTEM DEFINED BENEFIT PLAN LAST TEN FISCAL YEARS' Public Agency Retirement System Defined Benefit Plan Fiscal Year 2023-24 2022-23 2021-22 2020-21' 2019-20 Actuarially Determined Contribution $ 189,000 $ 189,000 $ 189,000 $ 118,500 $ 158,000 Contributions in Relation to the Actuarially Determined Contribution (189,000) (189,000) (189,000) - (158,000) Contribution Deficiency (Excess) $ - $ - $ - $ 118,500 $ Covered Payroll $ 405,346 $ 471,484 $ 495,251 $ 592,104 N/A Contributions as a Percentage of Covered Payroll 46.63% 40.09% 38.16% 0.00% N/A Determined for the nine month period ended on June 30 (fiscal year-end). Notes to Schedule: Valuation Date 6/30/2022 6/30/2022 6/30/2020 6/30/2018 6/30/2018 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method Level Dollar Level Dollar Level Dollar Level Dollar Level Dollar Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.50% 2.50% 2.75% 2.75% 2.75% Investment Rate of Return 5.25% 5.25% 5.75% 5.75% 5.75% Mortality, Retirement, Disability, and Termination (3) (3) (2) (2) (2) Mortality Improvement Scale (7) (7) (6) (5) (5) (1) CalPERS 1997-2011 Experience Study (2) CalPERS 1997-2015 Experience Study (3) CalPERS 2000-2019 Experience Study (4) Scale MP-2014 (5) Scale MP-2018 (6) Scale MP-2020 (7) Scale MP-2021 CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — PUBLIC AGENCY RETIREMENT SYSTEM DEFINED BENEFIT PLAN (CONTINUED) LAST TEN FISCAL YEARS' Public Agency Retirement System Defined Benefit 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 Notes to Schedule: Valuation Date Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Amortization Method Asset Valuation Method Inflation Investment Rate of Return Mortality, Retirement, Disability, and Termination Mortality Improvement Scale (1) CalPERS 1997-2011 Experience Study (2) CalPERS 1997-2015 Experience Study (3) CalPERS 2000-2019 Experience Study (4) Scale MP-2014 (5) Scale MP-2018 (6) Scale MP-2020 (7) Scale MP-2021 2018-19 2017-18 2016-17 2015-16 2014-15 $ 158,000 $ 158,000 $ 118,000 $ 118,000 $ (158,000) (158,000) (236,000) - $ - $ - $ (118,000) $ 118,000 $ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 6/30/16 6/30/16 Entry Age Entry Age Level Dollar Level Dollar Fair Value Fair Value 3.00% 3.00% 5.50% 5.50% (1) (1) (4) (4) CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN MEASUREMENT PERIODS' Other Postemployment Benefits (OPEB) Plan Measurement Period and Fiscal Year 2023-24 2022-23 Total OPEB Liability: Service Cost $ 1,425,839 $ 1,387,678 Interest 3,866,934 3,793,974 Changes of Benefit Terms 587,415 - Changes of Assumptions 440,068 Differences Between Expected and Actual Experience 957,038 Benefit Payments, Including Refunds (4,163,355) (3,973,532) Net Change in Total OPEB Liability 3,112,939 1,208,120 TotalOPEBLiability- Beginning 62,510,786 61,302,665 Total OPEB Liability - Ending (a) $ 65,623,724 $ 62,510,786 OPEB Fiduciary Net Position: Contributions - Employer $ 4,176,556 $ 3,985,790 Net Investment Income 3,359,005 1,847,181 Benefit Payments, Including Refunds of Employee Contributions (4,163,355) (3,973,532) Administrative Expense (28,746) (26,618) Net Change in Plan Fiduciary Net Position 3,343,460 1,832,821 Plan Fiduciary Net Position - Beginning 30,591,111 28,758,290 Plan Fiduciary Net Position - Ending (b) $ 33,934,571 $ 30,591,111 Plan Net OPEB Liability- Ending (a) - (b) $ 31,689,153 $ 31,919,674 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 51.71% 48.94% Covered -Employee Payroll $ 35,988,803 $ 36,783,511 Plan Net OPEB Liability as a Percentage of Covered -Employee Payroll 88.05% 86.78% ' Historical information is presented for measurement periods for which GASB 75 is applicable. Additional years' information will be displayed as it becomes available. CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN MEASUREMENT PERIODS' Other Postemployment Benefits (OPEB) Plan Measurement Period and Fiscal Year 2021-22 2020-21 2019-20 2018-19 2017-18 Total OPEB Liability: Service Cost $ 1,443,178 $ 1,313,607 $ 1,325,398 $ 1,428,884 $ 1,387,266 Interest 3,659,929 3,687,577 4,096,818 4,265,776 4,137,853 Changes of Benefit Terms 1,674,619 - - (4,289,232) - Changes ofAssumptions (1,238,582) 2,584,513 (1,323,051) Differences Between Expected and Actual Experience 564,371 - (6,345,201) Benefit Payments, Including Refunds (3,833,064) (3,741,312) (3,868,684) (3,741,351) (3,601,811) Net Change in Total OPEB Liability 2,270,451 3,844,385 (6,114,720) (2,335,923) 1,923,308 TotalOPEBLiability- Beginning 59,032,214 55,187,829 61,302,549 63,638,472 61,715,164 Total OPEB Liability- Ending (a) $ 61,302,666 $ 59,032,214 $ 55,187,829 $ 61,302,549 $ 63,638,472 OPEB Fiduciary Net Position: Contributions - Employer $ 3,842,008 $ 3,749,757 $ 4,425,712 $ 4,399,351 $ 4,026,811 Net Investment Income (4,444,351) 7,171,637 884,584 1,431,779 1,634,752 Benefit Payments, Including Refunds of Employee Contributions (3,833,064) (3,741,312) (3,868,684) (3,741,351) (3,601,811) Administrative Expense (25,086) (23,113) (21,262) (4,901) (38,164) Net Change in Plan Fiduciary Net Position (4,460,493) 7,156,969 1,420,350 2,084,878 2,021,588 Plan Fiduciary Net Position - Beginning 33,218,783 26,061,814 24,641,464 22,556,586 20,534,998 Plan Fiduciary Net Position - Ending (b) $ 28,758,290 $ 33,218,783 $ 26,061,814 $ 24,641,464 $ 22,556,586 Plan Net OPEB Liability- Ending (a) - (b) $ 32,544,375 $ 25,813,431 $ 29,126,015 $ 36,661,085 $ 41,081,886 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 46.91% 56.27% 47.22% 40.20% 35.44% Covered -Employee Payroll $ 36,644,532 $ 36,507,956 $ 32,938,247 $ 25,506,339 $ 25,512,342 Plan Net OPEB Liability as a Percentage of Covered -Employee Payroll 88.81% 70.71% 88.43% 143.73% 161.03% ' Historical information is presented for measurement periods for which GASB 75 is applicable. Additional years' information will be displayed as it becomes available. W CITY OF EL SEGUNDO SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN MEASUREMENT PERIODS' Other Postemployment Benefits (OPEB) Plan Notes to Schedule: 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. From measurement period ended June 30, 2021 to June 30 ,2022: -Management and Conf: Monthly maximum increased from $585 to $735 for all retirees and increased to $,650 for retirements after June 30, 2022 -Executive: Monthly maximum increased from $782 to $932 for all retirees, and increased to $1,650 for retirements after June 30, 2022 -Police and Fire: Monthly maximum decreased from $1,800 to $1,750 From measurement period ended June 30, 2023 to June 30 , 2024: -The following changes were made to the maximum City contributions towards retiree monthly medical premiums: •SPEA and PSSEA were increased from $1,650 to $1,850 •PMA was increased from $1,650 to $1,850 -Police was increased from $1,750 to $1,800 -Fire was decreased from $1,750 to $1,700 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. From measurement period ended June 30, 2020 to June 30 ,2021: The discount rate changed from 6.75% to 6.25%, inflation changed from 2.75% to 2.50%, salary increase changed from 3.00% to 2.75%, and the trend rate decreased by 0.25%. From measurement period ended June 30, 2021 to June 30 ,2022: Implied subsidy removed for medicare advantage plans, Demographic assumptions updated to CaIPERS 2000-2019 experience study, decreased medical trend for Kaiser Senior Advantage and mortality improvement scale was updated to MP-2021 From measurement period ended June 30, 2023 to June 30 ,2024: Medical plan at retirement assumed to be based on current election. Updated medical trend rates. PEMHCA minimum increases updated to 3.50% annually W CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — OPEB PLAN LAST TEN FISCAL YEARS' Other Postemployment Benefits (OPEB) Plan Fiscal Years Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Employee Payroll Contributions as a Percentage of Covered -Employee Payroll 2023-24 2022-23 $ 3,902,000 $ 3,761,000 (4,176,556) (3,985,790) $ (274,556) $ (224,790) $ 35,988,803 $ 36,783,511 11.61% 10.84% 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 twelve month period ended on September 30 (fiscal year-end). 3 Determined for the nine month period ended on June 30 (fiscal year-end). Notes to Schedule: Valuation Date Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Amortization Method Amortization Period Asset Valuation Method Discount Rate General Inflation Medical Trend Mortality, Withdrawal, Disability 6/30/2023 6/30/2021 Entry Age Level Percentage of Payroll 18 Years 19 Years Investment Gains and Losses Spread Over 5-Year Rolling Period 6.25% 6.25% 2.50% 2.50% (4) (4) (8) (8) (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) 7.25% (Non -Medicare) and 6.3% (Medicare) for 2021, decreasing to an ultimate rate of 4.0% in 2076. (4) 6.50% (Non -Medicare), 5.65% (Medicare Non -Kaiser) for 2023, and 4.60% (Medicare Kaiser) for 2023, decreasing to an ultimate rate of 3.75% in 2076. (5) CalPERS 1997-2011 experience study. Mortality Improvement Scale MP-2014. (6) CalPERS 1997-2015 experience study. Mortality Improvement Scale MP-2017. (7) CalPERS 1997-2015 experience study. Mortality Improvement Scale MP-2019. (8) CalPERS 2000-2019 experience study. Mortality Improvement Scale MP-2021. (120) CITY OF EL SEGUNDO SCHEDULE OF CONTRIBUTIONS — OPEB PLAN (CONTINUED) LAST TEN FISCAL YEARS' Other Postemployment Benefits (OPEB) Plan Fiscal Years Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Employee Payroll Contributions as a Percentage of Covered -Employee Payroll 2021-22 2020-216 2019-202 2018-192 2017-182 $ 3,494,000 $ 2,551,000 $ 4,436,000 $ 4,306,000 $ 3,876,000 (3,842,008) (2,819,754) (4,455,502) (4,435,351) (4,044,912) $ (348,008) $ (268,754) $ (19,502) $ (129,351) $ (168,912) $ 36,644,532 $ 37,380,967 $ 34,151,544 $ 26,049,352 $ 25,382,610 10.48% 7.54% 13.05% 17.03% 15.94% 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 twelve month period ended on September 30 (fiscal year-end). 3 Determined for the nine month period ended on June 30 (fiscal year-end). Notes to Schedule: Valuation Date Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Amortization Method Amortization Period Asset Valuation Method Discount Rate General Inflation Medical Trend Mortality, Withdrawal, Disability 6/30/2019 6/30/2019 6/30/2017 6/30/2017 6/30/2015 Entry Age Level Percentage of Payroll 20 Years 21 Years 22 Years 23 Years 25 Years Investment Gains and Losses Spread Over 5-Year Rolling Period 6.75% 6.75% 6.75% 6.75% 7.50% 2.75% 2.75% 2.75% 2.75% 3.00% (3) (3) (2) (2) (1) (7) (7) (6) (6) (5) (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) 7.25% (Non -Medicare) and 6.3% (Medicare) for 2021, decreasing to an ultimate rate of 4.0% in 2076. (4) 6.50% (Non -Medicare), 5.65% (Medicare Non -Kaiser) for 2023, and 4.60% (Medicare Kaiser) for 2023, decreasing to an ultimate rate of 3.75% in 2076. (5) CalPERS 1997-2011 experience study. Mortality Improvement Scale MP-2014. (6) CalPERS 1997-2015 experience study. Mortality Improvement Scale MP-2017. (7) CalPERS 1997-2015 experience study. Mortality Improvement Scale MP-2019. (8) CalPERS 2000-2019 experience study. Mortality Improvement Scale MP-2021. (121) This page intentionally left blank (122) SUPPLEMENTARY INFORMATION (123) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET GENERAL FUND COMPONENTS JUNE 30, 2024 ASSETS Cash and Investments Restricted Cash and Investments Receivables: Taxes Accounts Interest Leases PPP Due from Other Funds Due from Other Governments Inventories Prepaids Advances to Other Funds 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 Advances from Other Funds Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenues Related to Leases Related to PPP Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned (Deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Hyperion Project Uncertainty Mitigation Deposits General Fund Fund Fund $ 37,180,260 $ 2,000,004 $ 61,803 $ 1,489,234 5,915,375 - - - 6,839,222 - - - 666,455 - - 23,513 1,141,467 - - - 64,893,961 - - - 764,150 - - - 3,937,534 - - - 203,866 - - - 163,403 - - - 140,778 - - - 4,729,994 - - - $ 126,576,465 $ 2,000,004 $ 61,803 $ 1,512,747 $ 2,129,295 $ - $ 64 $ 165,890 2,619,276 - - - 5,985 - - 19,789 100,369 - - - 71,812 - - 272,386 5,330,745 - - - 10,257,482 - 64 458,065 127,190 - - - 64,893,961 - - - 764,150 - - - 65,785,301 - - - 5,034,175 - - - 6,015,744 - - - 2,003,919 - - - 37,479,844 2,000,004 61,739 1,054,682 50,533,682 2,000,004 61,739 1,054,682 $ 126,576,465 $ 2,000,004 $ 61,803 $ 1,512,747 (124) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET GENERAL FUND COMPONENTS (CONTINUED) JUNE 30, 2024 ASSETS Cash and Investments Restricted Cash and Investments Receivables: Taxes Accounts Interest Leases PPP Due from Other Funds Due from Other Governments Inventories Prepaids Advances to Other Funds 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 Advances from Other Funds Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenues Related to Leases Related to PPP Total Deferred Inflows of Resources FUND BALANCES Nonspendable Restricted Assigned Unassigned (Deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Solid Waste Golf Course Intrafund Fund Fund Eliminations $ - $ 366,914 $ Total - $ 41,098,215 5,915,375 - - - 6,839,222 - - - 689,968 - - - 1,141,467 - - - 64,893,961 - - - 764,150 - - (239,850) 3,697,684 - - - 203,866 - - 163,403 - - - 140,778 - - - 4,729,994 $ - $ 366,914 $ (239,850) $ 130,278,083 239,850 239,850 - $ - $ 2,295,249 - - 2,619,276 - 25,774 - (239,850) - 21,572 - 121,941 - - 344,198 - - 5,330,745 21,572 (239,850) 345,342 (239,850) 345,342 (239,850) 10,737,183 - 127,190 - 64,893,961 764,150 - 65,785,301 - 5,034,175 - 6,015,744 - 2,003,919 - 40,701,761 - 53,755,599 366,914 $ (239,850) $ 130,278,083 (125) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND COMPONENTS YEAR ENDED JUNE 30, 2024 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) Subscription Payable Issuance Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Economic Uncertainty General Fund $ 64,404,087 $ 17,109,023 2,302,513 5,329,350 8,721,879 382,947 3,649,666 101,899,465 20,682,719 36,275,581 8,166,169 8,581,615 771,889 775,966 135,521 75,389,460 Hyperion Project Mitigation Deposits Fund Fund - 282,055 - 1,552 - 1,552 282,055 - 15,739 - - - 538,798 - 15,739 538,798 26,510,005 - (14,187) (256,743) 741,890 - - - 1,050,500 - - - (28,812,360) - - - (27,019,970) - - - (509,965) - (14,187) (256,743) 51,043,647 2,000,004 75,926 1,311,425 $ 50,533,682 $ 2,000,004 $ 61,739 $ 1,054,682 (126) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GENERAL FUND COMPONENTS (CONTINUED) YEAR ENDED JUNE 30, 2024 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) Subscription Payable Issuance Transfers In Transfers Out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Solid Waste Golf Course Intrafund Fund Fund Eliminations 288,102 288,102 (288,102) Total $ 64,404,087 17,109,023 2,302,513 5,611,405 8,723,431 382,947 3,649,666 102,183,072 20,682,719 36,275,581 8,470,010 8,581,615 1,310,687 - - 775,966 - - 135,521 - 76,232,099 - - 25,950,973 - - - 741,890 600,000 5,577,906 (6,177,906) 1,050,500 - - 6,177,906 (22,634,454) 600,000 5,577,906 - (20,842,064) 311,898 5,577,906 - 5,108,909 (551,748) (5,232,564) - 48,646,690 $ (239,850) $ 345,342 $ - $ 53,755,599 (127) This page intentionally left blank (128) NONMAJOR 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 Unified Program Agency — 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. 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) NONMAJOR 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) cent 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 of Los Angeles County in November 2016. These revenues are received by the state and a portion is funneled to the City. These revenues must be spent to ease traffic congestion. (130) NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds (Continued): SB 1 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 % 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. County Storm Water Program — Accounts for the revenues and expenditures related to Measure W, the Los Angeles County Safe, Clean Water Program. Measure B — Accounts for the special tax levy on building improvements, approved by the voters of Los Angeles County, to be used for countywide system of trauma centers, emergency medical services, and for bioterrorism response throughout the County. Debt Service Fund: Facility Loan Fund — Accounts for the loan 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 payments over a 30-year period starting February 1, 2006, at an interest rate of 2.87% per annum. Interest payments on the loan obligation are due on February 1 and August 1 of each year. Invoices will be mailed to the City reflecting the actual amount owed prior to each payment due date. Capital Projects Fund: Developer Impact Fees — Accounts for the revenues and capital expenditures financed by developer impact fees. (131) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2024 Special Revenue Funds Certified Residential Union Community State Sound Program Development Asset Gas Tax Insulation Agencies Block Grant Forfeiture ASSETS Cash and Investments $ 381,284 $ 483,035 $ 1,461,324 $ $ 920,568 Receivables: Accounts - - - - Notes and Loans - - 49,405 Due from Other Governments 88,181 - - - - Total Assets $ 469,465 $ 483,035 $ 1,461,324 $ 49,405 $ 920,568 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable $ 41,270 $ $ 78,964 $ $ 9,888 Accrued Liabilities 63 - 23,413 - Retentions Payable - - - 775 Due to Other Funds - 10,235 Deposits Payable - - Advances to Other Funds - - - - - Total Liabilities 41,333 102,377 11,010 9,888 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - - - Total Deferred Inflows of Resources - - - - - FUND BALANCES Restricted 428,132 483,035 1,358,947 38,395 910,680 Assigned - - - - - Unassigned (Deficit) - - - - - TotalFund Balances 428,132 483,035 1,358,947 38,395 910,680 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 469,465 $ 483,035 $ 1,461,324 $ 49,405 $ 920,568 (132) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 Special Revenue Funds Air Traffic Pollution SB 821 Prop A Prop C Safety Reduction Bikeway ASSETS Cash and Investments $ 1,063,076 $ $ 78,578 $ 188,815 $ 30,700 Receivables: Accounts - - - - - Notes and Loans - - - Due from Other Governments - 29,515 4,324 - - Total Assets $ 1,063,076 $ 29,515 $ 82,902 $ 188,815 $ 30,700 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable $ 37,943 $ 908,168 $ $ $ - Accrued Liabilities 2,905 - - Retentions Payable - 12,531 Due to Other Funds 208,221 - Deposits Payable - Advances to Other Funds - - Total Liabilities 40,848 1,128,920 - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - Total Deferred Inflows of Resources - - - FUND BALANCES Restricted 1,022,228 82,902 188,815 30,700 Assigned - - - - - Unassigned (Deficit) - (1,099,405) - - - TotalFund Balances 1,022,228 (1,099,405) 82,902 188,815 30,700 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,063,076 $ 29,515 $ 82,902 $ 188,815 $ 30,700 (133) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 Special Revenue Funds State and MTA Federal County C.O. P.S. Grant Measure R Grants Grants ASSETS Cash and Investments $ 544,652 $ 18,140 $ 889,226 $ 7,666 $ Receivables: Accounts - - - - Notes and Loans - - - Due from Other Governments - 22,201 18,709 765,272 Total Assets $ 544,652 $ 18,140 $ 911,427 $ 26,375 $ 765,272 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable $ 59,497 $ $ $ $ 5,762 Accrued Liabilities - - 1,322 Retentions Payable - - Due to Other Funds - 402,045 Deposits Payable - - Advances to Other Funds - - Total Liabilities 59,497 409,129 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - 434 740,491 Total Deferred Inflows of Resources - - 434 740,491 FUND BALANCES Restricted 485,155 18,140 911,427 25,941 - Assigned - - - - - Unassigned (Deficit) - - - - (384,348) Total Fund Balances 485,155 18,140 911,427 25,941 (384,348) Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 544,652 $ 18,140 $ 911,427 $ 26,375 $ 765,272 (134) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 Special Revenue Funds Certified PSAF Access Property Tax Senior Specialist Public Safety Housing Measure M SB 1 Program ASSETS Cash and Investments $ 146,496 $ 315,141 $ $ 37,740 $ 165,264 Receivables: Accounts - - - - Notes and Loans - - - - Due from Other Governments 7,053 - 3,431,557 77,797 - Total Assets $ 153,549 $ 315,141 $ 3,431,557 $ 115,537 $ 165,264 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable $ 66 $ 316 $ 1,823 $ 112 $ - Accrued Liabilities - - - - 1,409 Retentions Payable - 1,616 - Due to Other Funds - 3,077,183 - Deposits Payable 33,909 - Advances to Other Funds - - - - Total Liabilities 66 34,225 3,080,622 112 1,409 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - 3,406,387 - - Total Deferred Inflows of Resources - - 3,406,387 - - FUND BALANCES Restricted 153,483 280,916 - 115,425 163,855 Assigned - - - - Unassigned (Deficit) - - (3,055,452) - - Total Fund Balances 153,483 280,916 (3,055,452) 115,425 163,855 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 153,549 $ 315,141 $ 3,431,557 $ 115,537 $ 165,264 (135) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 Special Revenue Funds Special County Affordable Cultural Revenues / Storm Water Housing Development Donations Program Measure B ASSETS Cash and Investments $ 5,608,351 $ 870,153 $ 644,768 $ 1,684,651 $ Receivables: Accounts - - 22,600 - Notes and Loans - Due from Other Governments - - - Total Assets $ 5,608,351 $ 870,153 $ 667,368 $ 1,684,651 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable $ $ 7 $ 27,943 $ 37,495 $ Accrued Liabilities 2,857 25 - Retentions Payable - - Due to Other Funds Deposits Payable Advances to Other Funds - - - Total Liabilities 2,864 27,968 37,495 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - - - Total Deferred Inflows of Resources - - - FUND BALANCES Restricted 5,608,351 867,289 639,400 1,647,156 Assigned - - - - Unassigned (Deficit) - - - - Total Fund Balances 5,608,351 867,289 639,400 1,647,156 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 5,608,351 $ 870,153 $ 667,368 $ 1,684,651 $ (136) CITY OF EL SEGUNDO COMBINING SCHEDULE OF BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 ASSETS Cash and Investments Receivables: Accounts Notes and Loans Due from Other Governments Total Assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable Accrued Liabilities Retentions Payable Due to Other Funds Deposits Payable Advances to Other Funds Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue Total Deferred Inflows of Resources FUND BALANCES Restricted Assigned Unassigned (Deficit) Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Debt Capital Service Fund Projects Fund Facility Developer Loan Impact Fees Total $ 306,498 $ 413,031 $ 16,259,157 - - 22,600 - 49,405 - - 4,444,609 $ 306,498 $ 413,031 $ 20,775,771 $ $ $ 1,209,254 31,994 14,922 3,697,684 33,909 4,987,763 4,147,312 4,147,312 306,498 413,031 16,179,901 - - (4,539,205) 306,498 413,031 11,640,696 $ 306,498 $ 413,031 $ 20,775,771 (137) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 Special Revenue Funds Certified Residential Union Community State Sound Program Development Asset Gas Tax Insulation Agencies Block Grant Forfeiture REVENUES Taxes $ $ - $ - $ $ Licenses and Permits - 85,384 Intergovernmental 477,275 - - 11,213 113,728 Charges for Services - - 1,098,923 - - Use of Money and Property 6,173 9,537 19,710 522 21,269 Fines and Forfeitures - - 5,946 - - Developer Fees - Miscellaneous - - - - Total Revenues 483,448 9,537 1,209,963 11,735 134,997 EXPENDITURES Current: General Government - - - - - Public Safety - 99,671 Public Works 182,560 - - - Community and Cultural - 878 569,658 - Capital Outlay 244,625 - - 179,827 Debt Service: Principal Retirement - - Interest - - - - Total Expenditures 427,185 878 569,658 - 279,498 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 56,263 8,659 640,305 11,735 (144,501) OTHER FINANCING SOURCES (USES) Transfers In - - - - - Transfers Out - - Total Other Financing Sources (Uses) - - - NET CHANGE IN FUND BALANCES 56,263 8,659 640,305 11,735 (144,501) Fund Balances - Beginning of Year, As Originally Reported 371,869 474,376 718,642 26,660 1,055,181 Adjustment - - - - - Fund Balances - Beginning of Year, As Adjusted 371,869 474,376 718,642 26,660 1,055,181 FUND BALANCES - END OF YEAR $ 428,132 $ 483,035 $ 1,358,947 $ 38,395 $ 910,680 (138) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Special Revenue Funds Air Traffic Pollution SB 821 Prop A Prop C Safety Reduction Bikeway REVENUES Taxes $ $ $ $ $ Licenses and Permits Intergovernmental 453,006 249,308 17,075 15,000 Charges for Services - - - - Use of Money and Property 34,183 32,703 4,011 371 Fines and Forfeitures - - 30,739 - - Developer Fees - - Miscellaneous - - - - Total Revenues 487,189 282,011 30,739 21,086 15,371 EXPENDITURES Current: General Government - - - - - Public Safety Public Works - Community and Cultural 1,109,641 - Capital Outlay - 3,116,974 Debt Service: Principal Retirement - Interest - - Total Expenditures 1,109,641 3,116,974 - - - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (622,452) (2,834,963) 30,739 21,086 15,371 OTHER FINANCING SOURCES (USES) Transfers In - - - - Transfers Out - (50,000) - Total Other Financing Sources (Uses) - (50,000) - - NET CHANGE IN FUND BALANCES (622,452) (2,834,963) (19,261) 21,086 15,371 Fund Balances - Beginning of Year, As Originally Reported 1,644,680 1,735,558 102,163 167,729 15,329 Adjustment - - - - - Fund Balances - Beginning of Year, As Adjusted 1,644,680 1,735,558 102,163 167,729 15,329 FUND BALANCES - END OF YEAR $ 1,022,228 $ (1,099,405) $ 82,902 $ 188,815 $ 30,700 (139) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Special Revenue Funds State and MTA Federal County C.O. P.S. Grant Measure R Grants Grants REVENUES Taxes $ $ $ $ $ Licenses and Permits Intergovernmental 186,159 431,957 42,657 150,398 Charges for Services - - - - Use of Money and Property 14,814 411 20,250 Fines and Forfeitures - - - Developer Fees Miscellaneous - - - - Total Revenues 200,973 411 452,207 42,657 150,398 EXPENDITURES Current: General Government - - - - - Public Safety 146,231 18,240 30,188 Public Works - - - Community and Cultural - - 46,315 Capital Outlay 163,259 672,005 786,537 Debt Service: Principal Retirement - - - Interest - - - Total Expenditures 309,490 - 672,005 18,240 863,040 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (108,517) 411 (219,798) 24,417 (712,642) OTHER FINANCING SOURCES (USES) Transfers In - 151,973 Transfers Out - - - Total Other Financing Sources (Uses) - 151,973 NET CHANGE IN FUND BALANCES (108,517) 411 (219,798) 176,390 (712,642) Fund Balances - Beginning of Year, As Originally Reported 593,672 17,729 1,131,225 (150,449) 328,294 Adjustment - - - - Fund Balances - Beginning of Year, As Adjusted 593,672 17,729 1,131,225 (150,449) 328,294 FUND BALANCES - END OF YEAR $ 485,155 $ 18,140 $ 911,427 $ 25,941 $ (384,348) (140) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 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, As Originally Reported Adjustment Fund Balances - Beginning of Year, As Adjusted FUND BALANCES - END OF YEAR Special Revenue Funds Certified PSAF Access Property Tax Senior Specialist Public Safety Housing Measure M SB 1 Program $ 39,994 $ $ $ $ - 432,736 446,393 - - - - 21,993 3,681 55,393 6,100 892 3,531 447,285 25,524 43,675 55,393 438,836 75,309 11,743 - - - 4,235,170 802,743 75,309 11,743 4,235,170 802,743 (31,634) 43,650 (3,796,334) (355,458) 200,000 (800,000) (600,000) (31,634) (556,350) (3,796,334) (355,458) 185,117 837,266 740,882 470,883 25,524 25,524 138,331 185,117 837,266 740,882 470,883 138,331 $ 153,483 $ 280,916 $ (3,055,452) $ 115,425 $ 163,855 (141) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 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, As Originally Reported Adjustment Fund Balances - Beginning of Year, As Adjusted FUND BALANCES - END OF YEAR Special Revenue Funds Special County Affordable Cultural Revenues / Storm Water Housing Development Donations Program Measure B - 603,971 60,383 - 898 - - 127,040 - 28,594 221,948 - - 1,076,701 - 127,040 221,948 1,077,599 632,565 60,383 - - 224,884 134,875 201,050 - 134,875 201,050 224,884 127,040 87,073 876,549 407,681 60,383 127,040 5,481, 311 - 96,531 - - (3,501,231) - - (3,404,700) - - 87,073 (2,528,151) 407,681 60,383 780,216 3,167,551 1,239,475 (60,383) 5,481,311 780,216 3,167,551 1,239,475 (60,383) $ 5,608,351 $ 867,289 $ 639,400 $ 1,647,156 $ (142) CITY OF EL SEGUNDO COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED JUNE 30, 2024 Debt Service Fund Capital Projects Funds Facility Developer Capital Loan Impact Fees Improvement Total REVENUES Taxes $ $ $ $ 39,994 Licenses and Permits - 85,384 Intergovernmental - 3,691,259 Charges for Services - 1,121,814 Use of Money and Property - 389,185 Fines and Forfeitures - 36,685 Developer Fees 63,785 232,715 518,448 Miscellaneous - - 1,076,701 Total Revenues 63,785 232,715 6,959,470 EXPENDITURES Current: General Government 16,492 - 16,492 Public Safety - - 369,639 Public Works - 407,444 Community and Cultural - 2,074,160 Capital Outlay - - 10,201,140 Debt Service: Principal Retirement 354,876 - 354,876 Interest 152,693 - 152,693 Total Expenditures 524,061 - 13,576,444 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (460,276) 232,715 (6,616,974) OTHER FINANCING SOURCES (USES) Transfers In - 448,504 Transfers Out - (4,351,231) Total Other Financing Sources (Uses) - (3,902,727) NET CHANGE IN FUND BALANCES (460,276) 232,715 - (10,519,701) Fund Balances - Beginning of Year, As Originally Reported 766,774 180,316 5,855,027 28,015,424 Adjustment - - (5,855,027) (5,855,027) Fund Balances - Beginning of Year, As Adjusted 766,774 180,316 22,160,397 FUND BALANCES - END OF YEAR $ 306,498 $ 413,031 $ $ 11,640,696 (143) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STATE GAS TAX SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Current: Public Works Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 461,594 $ 461,594 10,000 10,000 471,594 471,594 Variance with Final Budget Actual Positive Amounts (Negative) 477,275 $ 15,681 6,173 (3,827) 483,448 11,854 221,745 282,502 182,560 99,942 - 248,768 244,625 4,143 221,745 531,270 427,185 104,085 $ 249,849 $ (59,676) 56,263 $ 115,939 371,869 $ 428,132 (144) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL RESIDENTIAL SOUND INSULATION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 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 FUND BALANCE - END OF YEAR Budgeted Amounts Original Final 10,000 10,000 10,000 10,000 $ (10,000) $ (10,000) Actual Amounts 9,537 9,537 Variance with Final Budget Positive (Negative) $ 9,537 9,537 878 9,122 878 9,122 8,659 $ 18,659 474,376 $ 483,035 (145) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CERTIFIED UNION PROGRAM AGENCIES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Licenses and Permits $ 26,600 $ 26,600 $ 85,384 $ 58,784 Charges for Services 419,830 419,830 1,098,923 679,093 Use of Money and Property 1,300 1,300 19,710 18,410 Fines and Forfeitures 5,000 5,000 5,946 946 Total Revenues 452,730 452,730 1,209,963 757,233 EXPENDITURES Current: Community and Cultural 537,828 537,828 569,658 (31,830) Total Expenditures 537,828 537,828 569,658 (31,830) NET CHANGE IN FUND BALANCES $ (85,098) $ (85,098) 640,305 $ 725,403 Fund Balance - Beginning of Year 718,642 FUND BALANCE - END OF YEAR $ 1,358,947 (146) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 51,000 $ 51,000 51,000 51,000 284,139 144,000 284,139 144,000 $ (233,139) $ (93,000) Actual Amounts $ 11,213 522 11,735 Variance with Final Budget Positive (Negative) $ (39,787) 522 (39,265) - 144,000 - 144,000 11,735 $ 104,735 26,660 $ 38,395 (147) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ASSET FORFEITURE SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Current: Public Safety Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 20,000 $ 20,000 2,000 2,000 22,000 22,000 Actual Amounts $ 113,728 21,269 134,997 Variance with Final Budget Positive (Negative) $ 93,728 19,269 112,997 500,000 500,000 99,671 400,329 300,000 365,453 179,827 185,626 800,000 865,453 279,498 585,955 $ (778,000) $ (843,453) (144,501) $ 698,952 1,055,181 $ 910,680 (148) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PROP A SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 306,000 $ 306,000 $ 453,006 $ 147,006 Charges for Services 510 510 - (510) Use of Money and Property 7,000 7,000 34,183 27,183 Total Revenues 313,510 313,510 487,189 173,679 EXPENDITURES Current: Community and Cultural 362,281 1,103,273 1,109,641 (6,368) Total Expenditures 362,281 1,103,273 1,109,641 (6,368) NET CHANGE IN FUND BALANCES $ (48,771) $ (789,763) (622,452) $ 167,311 Fund Balance - Beginning of Year 1,644,680 FUND BALANCE - END OF YEAR $ 1,022,228 (149) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PROP C SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 255,000 $ 255,000 9,000 9,000 264,000 264,000 Actual Amounts $ 249,308 32,703 282,011 Variance with Final Budget Positive (Negative) $ (5,692) 23,703 18,011 300,000 3,947,826 3,116,974 830,852 300,000 3,947,826 3,116,974 830,852 $ (36,000) $ (3,683,826) (2,834,963) $ 848,863 1,735,558 $ L Q 9,405) (150) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC SAFETY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Fines and Forfeitures Total Revenues OTHER FINANCING SOURCES Transfer Out NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) 30,739 $ (14,261) 30,739 (14,261) - - (50,000) (50,000) $ 45,000 $ 45,000 (19,261) $ (64,261) $ 82,902 (151) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL AIR POLLUTION REDUCTION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 20,000 $ 20,000 510 510 20,510 20,510 100,000 100,000 100,000 100,000 $ (79,490) $ (79,490) Actual Amounts $ 17,075 4,011 21,086 Variance with Final Budget Positive (Negative) $ (2,925) 3,501 576 - 100,000 - 100,000 21,086 $ 100,576 167.729 $ 188,815 (152) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SB 821 SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 10,000 $ 10,000 200 200 10,200 10,200 15,000 15,000 15,000 15,000 $ (4,800) $ (4,800) Actual Amounts $ 15,000 371 15,371 Variance with Final Budget Positive (Negative) $ 5,000 171 5,171 - 15,000 - 15,000 15,371 $ 20,171 15,329 $ 30,700 (153) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL C.O.P.S. SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Current: Public Safety Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 150,000 $ 150,000 4,000 4,000 154,000 154,000 Actual Amounts $ 186,159 14,814 200,973 Variance with Final Budget Positive (Negative) $ 36,159 10,814 46,973 465,000 450,000 146,231 303,769 150,000 165,000 163,259 1,741 615,000 615,000 309,490 305,510 $ (461,000) $ (461,000) (108,517) $ 352,483 593,672 $ 485,155 (154) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MTA GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 10,000 $ 10,000 200 200 10,200 10,200 $ 10,200 $ 10,200 Variance with Final Budget Actual Positive Amounts (Negative) - $ (10,000) 411 211 411 (9,789) 411 $ (9,789) 17,729 $ 18,140 (155) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MEASURE R SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 500,000 $ 500,000 10,000 10,000 510,000 510,000 Actual Amounts $ 431,957 20,250 452,207 Variance with Final Budget Positive (Negative) $ (68,043) 10,250 (57,793) 600,000 6,477,515 672,005 5,805,510 600,000 6,477,515 672,005 5,805,510 $ (90,000) $ (5,967,515) (219,798) $ 5,747,717 1,131,225 $ 911,427 (156) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FEDERAL GRANTS SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Total Revenues EXPENDITURES Current: Public Safety Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance (Deficit) - Beginning of Year FUND BALANCE (DEFICIT) - END OF YEAR Budgeted Amounts Original Final $ 396,370 $ 396,370 $ 396,370 396,370 Variance with Final Budget Actual Positive Amounts (Negative) 42,657 $ (353,713) 42,657 (353,713) 418,038 418,038 18,240 399,798 322,500 322,500 - 322,500 740,538 740,538 18,240 722,298 $ (344,168) $ (344,168) 24,417 $ 368,585 (150,449) $ (126,032) (157) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STATE GRANTS SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Total Revenues EXPENDITURES Current: Public Safety Community and Cultural Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance (Deficit) - Beginning of Year FUND BALANCE (DEFICIT) - END OF YEAR Budgeted Amounts Original Final $ 140,111 $ 210,111 $ 140,111 210,111 Variance with Final Budget Actual Positive Amounts (Negative) 150,398 $ (59,713) 150,398 (59,713) 148,944 183,656 30,188 153,468 - 43,086 46,315 (3,229) 180,000 966,537 786,537 180,000 328,944 1,193,279 863,040 330,239 $ (188,833) $ (983,168) (712,642) $ 270,526 328,294 $ (384,348) (158) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PSAF PROPERTY TAX PUBLIC SAFETY SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Taxes Use of Money and Property Total Revenues EXPENDITURES Current: Public Safety Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 30,000 $ 30,000 1,020 1,020 31,020 31,020 Actual Amounts $ 39,994 3,681 43,675 Variance with Final Budget Positive (Negative) $ 9,994 2,661 12,655 75,000 75,000 75,309 (309) 75,000 75,000 75,309 (309) $ (43,980) $ (43,980) (31,634) $ 12,346 185,117 $ 153,483 (159) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SENIOR HOUSING SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Use of Money and Property Total Revenues EXPENDITURES Current: Community and Cultural Capital Outlay Total Expenditures OTHER FINANCING SOURCES Transfer In Transfer Out Total Other Financing Sources NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 3,099 $ 3,099 $ Variance with Final Budget Actual Positive Amounts (Negative) 3,099 3,099 55,393 52,294 8,981 8,981 11,743 (2,762) 142,000 154,480 - 154,480 150,981 163,461 11,743 151,718 200,000 200,000 200,000 - (800,000) (800,000) (800,000) - (600,000) (600,000) (600,000) - $ (747,882) $ (760,362) (556,350) $ (99,424) 837,266 $ 280,916 (160) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MEASURE M SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 204,000 $ 229,000 5,000 5,000 209,000 234,000 Actual Amounts $ 432,736 6,100 438,836 Variance with Final Budget Positive (Negative) $ 203,736 1,100 204,836 200,000 4,541,909 4,235,170 306,739 200,000 4,541,909 4,235,170 306,739 $ 9,000 $ (4,307,909) (3,796,334) $ 511,575 740,882 $ (3,055,452) (161) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SB 1 SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 368,921 $ 368,921 $ 446,393 $ 77,472 7,000 7,000 892 (6,108) 375,921 375,921 447,285 71,364 800,000 800,000 802,743 (2,743) 800,000 800,000 802,743 (2,743) $ (424,079) $ (424,079) (355,458) $ 68,621 470,883 $ 115,425 (162) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CERTIFIED ACCESS SPECIALIST PROGRAM SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Charges for Services Use of Money and Property Total Revenues EXPENDITURES Current: Community and Cultural Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 20,000 $ 20,000 $ 21,993 $ 1,993 1,000 1,000 3,531 2,531 21,000 21,000 25,524 4,524 15,000 15,000 15,000 15,000 $ 6,000 $ 6,000 - 15,000 - 15,000 25,524 $ 19,524 138,331 $ 163,855 (163) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL AFFORDABLE HOUSING SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Use of Money and Property Total Revenues NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 50,000 $ 50,000 $ 127,040 $ 77,040 50,000 50,000 127,040 77,040 $ 50,000 $ 50,000 127,040 $ 77,040 5,481,311 $ 5,608,351 (164) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CULTURAL DEVELOPMENT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Developer Fees Total Revenues EXPENDITURES Current: Community and Cultural Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 500,000 $ 500,000 500,000 500,000 Variance with Final Budget Actual Positive Amounts (Negative) 221,948 $ (278,052) 221,948 (278,052) 258,196 258,196 134,875 123,321 258,196 258,196 134,875 123,321 $ 241,804 $ 241,804 87,073 $ (154,731) 780,216 $ 867,289 (165) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SPECIAL REVENUES AND DONATIONS SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Miscellaneous $ 1,050,000 $ 1,066,980 $ 1,076,701 $ 9,721 Total Revenues 1,050,000 1,066,980 1,077,599 10,619 EXPENDITURES Current: Public Safety 10,000 10,000 - 10,000 Community and Cultural 159,000 274,931 201,050 73,881 Capital Outlay 40,000 40,000 - 40,000 Total Expenditures 209,000 324,931 201,050 123,881 OTHER FINANCING SOURCES Transfer In - - 96,531 96,531 Transfer Out - - (3,501,231) (3,501,231) Total Other Financing Sources - - (3,404,700) (3,404,700) NET CHANGE IN FUND BALANCES $ 841,000 $ 742,049 (2,528,151) $ (3,517,962) Fund Balance - Beginning of Year 3,167,551 FUND BALANCE - END OF YEAR $ 639,400 (166) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL COUNTY STORM WATER PROGRAM SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 REVENUES Intergovernmental Use of Money and Property Total Revenues EXPENDITURES Current: Public Works Capital Outlay Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 663,000 $ 663,000 10,200 10,200 673,200 673,200 Actual Amounts $ 603,971 28,594 632,565 Variance with Final Budget Positive (Negative) $ (59,029) 18,394 (40,635) 400,000 407,466 224,884 182,582 350,000 350,000 - 350,000 750,000 757,466 224,884 532,582 $ (76,800) $ (84,266) 407,681 $ 491,947 1,239,475 $ 1,647,156 (167) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MEASURE B SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024 EXPENDITURES Current: Public Works Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 12,580 $ 12,580 $ - $ 12,580 12,580 12,580 - 12,580 $ (12,580) $ (12,580) 60,383 $ 72,963 (60,383) (168) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FACILITY LOAN DEBT SERVICE FUND YEAR ENDED JUNE 30, 2024 REVENUES Developer Fees Total Revenues EXPENDITURES Current: General Government Debt Service: Principal Retirement Interest Total Expenditures NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 367,200 $ 367,200 $ 367,200 367,200 Variance with Final Budget Actual Positive Amounts (Negative) 63,785 $ (303,415) 63,785 (303,415) - - 16,492 (16,492) 434,000 434,000 354,876 79,124 169,300 169,300 152,693 16,607 603,300 603,300 524,061 79,239 $ (236,100) $ (236,100) (460,276) $ (224,176) 766,774 $ 306,498 (169) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PENSION OBLIGATION BONDS DEBT SERVICE FUND YEAR ENDED JUNE 30, 2024 REVENUES Use of Money and Property Total Revenues EXPENDITURES Debt Service: Principal Retirement Interest Total Expenditures EXCESS (DEFICIENCY) OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES Transfers In Total Other Financing Sources NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 10 $ 10 $ - $ (10) 10 10 - (10) 6,570,720 6,570,720 6,546,420 24,300 2,926,986 2,926,986 2,939,130 (12,144) 9,497,706 9,497,706 9,485,550 12,156 (9,497,696) (9,497,696) (9,485,550) 12,146 9,497,707 9,497,707 9,497,707 9,497,707 9,497,707 9,497,707 $ 11 $ 11 12,157 $ 8,025,370 $ 8,037,527 12,146 (170) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEVELOPMENT IMPACT FEES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2024 REVENUES Developer Fees Total Revenues NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 232,715 $ 232,715 232,715 232,715 - 232,715 $ 232,715 180,316 $ 413,031 (171) CITY OF EL SEGUNDO SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2024 EXPENDITURES Capital Outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES UNDER EXPENDITURES OTHER FINANCING SOURCES: Transfers In Total Other Financing Sources NET CHANGE IN FUND BALANCES Fund Balance - Beginning of Year FUND BALANCE - END OF YEAR Budgeted Amounts Original Final $ 16,986,500 $ 26,839,407 $ 16,986,500 26,839,407 (16,986,500) (26,839,407) 8,432,500 8,432,500 8,432,500 8,432,500 $ (8,554,000) $ (18,406,907) Variance with Final Budget Actual Positive Amounts (Negative) - $ 26,839,407 - 26,839,407 26,839,407 - (8,432,500) (8,432,500) - $ 18,406,907 5,855,027 $ 5,855,027 (172) 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. (173) CITY OF EL SEGUNDO COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2024 ASSETS Current Assets: Cash and Investments Accounts Receivable Total Current Assets Noncurrent Assets: Advance to Other Funds Capital Assets, Net of Depreciation/Amortization 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 LIABILITIES Current Liabilities: Accounts Payable Accrued Liabilities Claims and Judgments, Current Portion Total Current Liabilities Noncurrent Liabilities: Claims and Judgments, Net of Current Aggregate Net Pension Liability Net Other Postemployment Benefit Liability Total Noncurrent Liabilities Total Liabilities DEFERRED INFLOWS OF RESOURCES Deferred Inflows of Resources Related to OPEB Total Deferred Inflows of Resources NET POSITION (DEFICIT) Investment in Capital Assets Unrestricted (Deficit) Total Net Position (Deficit) Equipment Liability Workers' Replacement Insurance Compensation Fund Fund Fund Total $ 9,816,420 $ 1,733,688 $ 9,619,389 $ 21,169,497 40,000 187,193 34,953 262,146 9,856,420 1,920,881 9,654,342 21,431,643 5,330,745 - - 5,330,745 3,667,895 - - 3,667,895 8,998,640 - - 8,998,640 18,855,060 1,920,881 9,654,342 30,430,283 - 51,055 137,445 188,500 5,616 5,169 10,785 56,671 142,614 199,285 133,025 11,607 170,000 314,632 - 1,862,298 2,445,625 4,307,923 133,025 1,873,905 2,615,625 4,622,555 - 4,553,702 10,202,375 14,756,077 - 73,349 197,459 270,808 - 76,620 70,513 147,133 - 4,703,671 10,470,347 15,174,018 133,025 6,577,576 13,085,972 19,796,573 2,044 1,882 3,926 2,044 1,882 3,926 3,566,503 - - 3,566,503 15,155,532 (4,602,068) (3,290,898) 7,262,566 $ 18,722,035 $ (4,602,06§ $ (3,290,89§1 $ 10,829,069 (174) CITY OF EL SEGUNDO COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2024 Equipment Liability Workers' Replacement Insurance Compensation OPERATING REVENUES Interdepartmental Charges $ 2,161,972 $ 3,100,000 $ 3,298,022 $ 8,559,994 Miscellaneous 152,835 - 309,774 462,609 Total Operating Revenues 2,314,807 3,100,000 3,607,796 9,022,603 OPERATING EXPENSES Personnel Services - 96,721 200,368 297,089 Materials and Supplies 69,352 - 9,449 78,801 Insurance and Claims - 1,000,737 2,796,590 3,797,327 Depreciation 497,251 - - 497,251 Total Operating Expenses 566,603 1,097,458 3,006,407 4,670,468 OPERATING INCOME (LOSS) 1,748,204 2,002,542 601,389 4,352,135 NONOPERATING INCOME Gain (Loss) on Disposal of Capital Assets - - - - Total Nonoperating Income - - - - INCOME (LOSS) BEFORE TRANSFERS 1,748,204 2,002,542 601,389 4,352,135 TRANSFERS Transfers In 555,744 - - 555,744 Transfers Out (147,183) - - (147,183) Total Transfers 408,561 - - 408,561 CHANGES IN NET POSITION 2,156,765 2,002,542 601,389 4,760,696 Net Position - Beginning of the Year 16,565,270 (6,604,610) (3,892,287) 6,068,373 NET POSITION - END OF YEAR $ 18,722,035 $ (4,602,068) $ (3,290,898) $ 10,829,069 (175) CITY OF EL SEGUNDO COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Users Payments for Insurance and Claims Payments to Suppliers Payments to Employees Net Cash Provided by Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash Received from Other Funds Cash Payments to Other Funds Net Cash Used 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 IN CASH AND CASH EQUIVALENTS Cash and Cash Equivalents - Beginning of Year CASH AND CASH EQUIVALENTS - END OF YEAR RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation (Increase) Decrease in: Accounts Receivable 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 - OPEB Total Adjustments Net Cash Provided by Operating Activities NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Capital Assets in Accounts Payable Equipment Liability Workers' Replacement Insurance Compensation Fund Fund Fund Total $ 2,274,807 $ 2,912,807 $ 3,572,843 $ 8,760,457 - (2,463,504) (2,623,371) (5,086,875) (37,719) (9,449) (47,168) - (73,726) (134,698) (208,424) 2,237,088 375,577 805,325 3,417,990 802,909 - - 802,909 (147,183) (147,183) 655,726 655,726 (1,104,398) (1,104,398) (1,104,398) - - (1,104,398) 1,788,416 375,577 805,325 2,969,318 8,028,004 1,358,111 8,814,064 18,200,179 $ 9,816,420 $ 1,733,688 $ 9,619,389 $ 21,169,497 $ 1,748,204 $ 2,002,542 $ 601,389 $ 4,352,135 497,251 - - 497,251 (40,000) (187,193) (34,953) (262,146) 13,480 30,495 43,975 - 2,403 2,211 4,614 31,633 79,233 168,442 279,308 - - (11,223) (11,223) (1,542,000) 16,000 (1,526,000) 11,790 37,268 49,058 (558) (513) (1,071) - (4,120) (3,791) (7,911) 488,884 (1,626,965) 203,936 (934,145) $ 2,237,088 $ 375,577 $ 805,325 $ 3,417,990 $ 101,392 $ $ $ 101,392 (176) STATISTICAL SECTION (177) This page intentionally left blank (178) CITY OF EL SEGUNDO DESCRIPTION OF STATISTICAL SECTION CONTENTS 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 Page Financial Trends 180 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 188 These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 193 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 200 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 202 These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. (179) CITY OF EL SEGUNDO NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 Governmental activities: Net investment in capital assets 90,783,595 90,014,262 92,615,618 93,775,527 93,823,843 Restricted 8,922,448 8,562,915 7,372,369 7,882,394 11,082,956 Unrestricted (89,732,982) (86,756,004) (91,119,511) (129,410,242) (125,853,873) Total governmental activities net position 9,973,061 11,821,173 8,868,476 (27,752,321) (20,947,074) Business -type activities Net investment in capital assets 22,657,797 25,387,562 27,679,609 30,800,645 31,244,813 Restricted - - - - - Unrestricted 12,247,482 12,855,184 15,808,634 10,485,483 22,534,785 Total business -type activities net position 34,905,279 38,242,746 43,488,243 41,286,128 53,779,598 Primary government Net investment in capital assets 113,441,392 115,401,824 120,295,227 124,576,172 125,068,656 Restricted 8,922,448 8,562,915 7,372,369 7,882,394 11,082,956 Unrestricted (77,485,500) (73,900,820) (75,310,877) (118,924,759) (103,319,088) Total primary government net position 44,878,340 50,063,919 52,356,719 13,533,807 32,832,524 (180) CITY OF EL SEGUNDO NET POSITION BY COMPONENT (CONTINUED) LAST TEN FISCAL YEARS 2020 2021 2022 2023 2024 Governmental activities: Net investment in capital assets 91,747,670 93,360,733 91,541,308 101,562,280 108,641,202 Restricted 21,263,102 21,618,456 85,598,580 35,416,676 30,828,193 Unrestricted (134,494,651) (125,165,656) (109,457,284) (110,637,114) (107,483,696) Total governmental activities net position (21,483,879) (10,186,467) 67,682,604 26,341,842 31,985,699 Business -type activities Net investment in capital assets 30,667,983 27,259,225 26,842,980 22,684,209 22,859,587 Restricted - - 1,080,865 - - Unrestricted 23,941,178 31,964,172 36,475,623 46,893,254 54,048,617 Total business -type activities net position 54,609,161 59,223,397 64,399,468 69,577,463 76,908,204 Primary government: Net investment in capital assets Restricted Unrestricted Total primary government net position 122,415,653 120,619,958 118,384,288 124,246,489 131,500,789 21,263,102 21,618,456 86,679,445 35,416,676 30,828,193 JJ,1'25,2b2 49,UJb,93U IJ2,ut52,U/2 9b,919,JUb lub,bgj,guj (181) CITY OF EL SEGUNDO CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 Expenses: Governmental activities: General government 14,984,299 14,165,449 14,869,930 16,215,039 17,788,600 Public safety 41,422,188 35,612,565 42,891,455 44,847,122 40,878,258 Public works 9,150,452 7,440,438 7,474,391 9,413,340 9,534,893 Community development 21,038,253 9,298,275 11,407,811 10,442,877 11,321,339 Interest on long-term debt 457,994 441,712 361,470 242,750 337,350 Total governmental activities expenses 87,053,186 66,958,439 77,005,057 81,161,128 79,860,440 Business -type activities: Water 25,035,801 25,454,732 26,508,256 27,907,911 26,525,468 Wastewater 3,484,104 3,517,640 4,048,104 4,164,437 3,336,645 Golf Course 2,190,195 2,136,456 2,017,104 1,990,092 1,674,851 El Segundo Senior Citizen Housing Corp. - - - - - Total business -type activities expenses 30,710,100 31,108,828 32,573,464 34,062,440 31,536,WA Total primary government expenses 117,763,286 98,067,267 109,578,521 115,223,568 111,397,404 Program revenues: Governmental activities: Charges for services: General government 635,350 631,274 445,394 371,345 364,486 Public safety 1,948,464 1,637,884 1,523,519 2,058,888 1,624,718 Public works 267,748 11,199 16,643 1,201 - Community development 6,733,395 5,708,772 6,516,792 6,477,503 7,473,096 Operating grants and contributions 2,052,527 1,808,463 1,189,900 1,858,256 4,148,187 Capital grants and contributions 14,487,783 2,174,898 1,737,376 1,197,981 2,580,996 Total governmental activities program revenues 26,125,267 11,972,490 11,429,624 11,965,174 16,191,483 Business -type activities: Charges for services: Water 29,304,012 28,281,456 31,626,637 27,779,828 33,824,119 Wastewater 3,568,042 4,090,187 4,275,264 4,348,849 4,475,896 Golf Course 1,939,165 1,828,549 1,604,258 1,650,376 1,643,682 El Segundo Senior Citizen Housing Corp. - - - - - Operating grants and contributions - Capital grants and contributions - - - 375,000 Total business -type activities program revenues 34,811,219 34,200,192 37,506,159 33,779,053 40,318,697 Total primary government program revenues 60,936,486 46,172,682 48,935,783 45,744,227 56,510,180 Net revenues (expenses): Governmental activities (60,927,919) (54,985,949) (65,575,433) (69,195,954) (63,668,957) Business -type activities 4,101,119 3,091,364 4,932,695 (283,387) 8,781,733 Total net revenues (expenses) (56,826,800) (51,894,585) (60,642,738) (69,479,341) (54,687,224) General revenues and other changes in net assets: Governmental activities: Taxes: Propertytaxes 8,380,084 8,884,423 9,093,795 10,444,931 11,138,625 Sales tax 11,442,632 12,089,552 12,201,208 10,636,769 13,023,091 Transient occupancy taxes 5,423,972 7,597,007 12,876,631 13,885,312 14,598,200 Other taxes 27,765,133 26,730,933 27,021,575 29,498,067 28,391,959 Motor vehicle in lieu, unrestricted - 6,859 7,461 - - Investment income 331,238 646,338 532,728 760,598 2,440,102 Other general revenues 813,211 1,396,608 889,337 1,954,399 1,682,211 Transfers - - - - - Total governmental activities 54,156,270 57,351,720 62,622,735 67,180,076 71,274,188 Business -type activities: Investment income 254,662 222,348 170,178 176,212 1,139,315 Other 19,730 23,755 142,624 16,929 23,926 Transfers - - - - - Total business -type activities 274,392 246,103 312,802 193,141 1,163,241 Total primary government 54,430,662 57,597,823 62,935,537 67,373,217 72,437,429 Changes in net position: Governmental activities (6,771,649) 2,365,771 (2,952,698) (2,015,878) 7,605,231 Business -type activities 4,375,511 3,337,467 5,245,497 (90,246) 9,944,974 Total primary government (2,396,138) 6,703,238 2,292,799 (2,106,124) 17,550,205 (182) CITY OF EL SEGUNDO CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS 2020 2021 2022 2023 2024 Expenses: Governmental activities: General government 18,698,011 15,339,955 18,434,149 22,930,730 23,086,066 Public safety 43,330,009 21,813,534 (30,085,922) 98,918,452 55,541,234 Public works 11,961,463 8,868,760 12,320,674 11,332,554 13,742,118 Community development 10,058,912 7,026,812 7,277,725 11,520,553 12,118,350 Interest on long-term debt 324,830 500,659 2,924,779 3,253,661 3,467,026 Total governmental activities expenses 84,373,225 53,549,720 10,871,405 147,955,950 107,954,794 Business -type activities: Water 25,014,972 18,520,750 30,211,365 28,789,265 31,418,553 Wastewater 4,978,350 3,430,966 4,441,887 4,481,743 5,090,243 Golf Course 1,553,159 4,678,672 239,326 El Segundo Senior Citizen Housing Corp. - 597,152 778,977 778,448 764,075 Total business -type activities expenses 31,546,481 27,227,540 35,671,555 34,049,456 37,272,871 Total primary government expenses 115,919,706 80,777,260 46,542,960 182,005,406 145,227,665 Program revenues: Governmental activities: Charges for services: General government 258,538 266,496 286,451 375,649 309,935 Public safety 1,545,947 980,145 1,636,988 1,926,570 1,884,306 Public works 26,524 54,669 54,457 111,720 73,572 Community development 5,390,803 5,639,664 6,474,161 8,524,771 8,253,835 Operating grants and contributions 2,932,318 2,120,276 6,408,261 5,716,659 3,186,914 Capital grants and contributions 7,691,323 2,421,429 2,328,528 2,510,786 6,374,894 Total governmental activities program revenues 17,845,453 11,482,679 17,188,846 19,166,155 20,083,456 Business -type activities: Charges for services: Water 26,404,788 24,626,599 35,830,853 33,002,111 36,062,306 Wastewater 4,194,630 3,266,685 4,829,814 5,178,951 6,132,995 Golf Course 1,484,846 1,098,917 118,929 - - EI Segundo Senior Citizen Housing Corp. - 772,819 815,024 881,046 965,417 Operating grants and contributions - - - - Capital grants and contributions - - - - - Total business -type activities program revenues 32,084,264 29,765,020 41,594,620 39,062,108 43,160,718 Total primary government program revenues 49,929,717 41,247,699 58,783,466 58,228,263 63,244,174 Net revenues (expenses): Governmental activities (66,527,772) (42,067,041) 6,317,441 (128,789,795) (87,871,338) Business -type activities 537,783 2,537,480 5,923,065 5,012,652 5,887,847 Total net revenues (expenses) (65,989,989) (39,529,561) 12,240,506 (123,777,143) (81,983,491) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 11,816,366 12,348,994 12,551,435 10,750,248 11,646,066 Sales tax 12,006,731 8,339,284 13,374,232 17,424,472 17,436,292 Transient occupancy taxes 8,760,763 4,416,020 12,267,534 14,143,605 14,343,804 Other taxes 28,059,801 26,397,089 32,011,867 36,331,535 35,070,045 Motor vehicle in lieu, unrestricted - - 2,108,064 2,302,513 Investment income 3,420,790 457,980 (465,662) 3,982,103 8,809,978 Other general revenues 1,926,516 1,405,086 1,812,224 1,979,838 4,053,680 Transfers - - - 729,168 (147,183) Total governmental activities 65,990,967 53,364,453 71,551,630 87,449,033 93,515,195 Business -type activities: Investment income 291,780 427,834 (746,994) 894,511 1,295,711 Other - - Transfers - - (729,168) 147,183 Total business -type activities 291,780 427,834 (746,994) 165,343 1,442,894 Total primary government 66,282,747 53,792,287 70,804,636 87,614,376 94,968,089 Changes in net position: Governmental activities (536,805) 11,297,412 77,869,071 (41,340,762) 5,643,857 Business -type activities 829,563 2,965,314 5,176,071 5,177,995 7,330,741 Total primary government 292,758 14,262,726 83,045,142 (36,162,767) 12,974,598 (183) General fund: Nonspendable Restricted Assigned Unassigned Total general fund All other governmental funds: Nonspendable Restricted Assigned Unassigned Total all other governmental funds CITY OF EL SEGUNDO FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2,575,497 2,017,346 7,373,109 6,256,640 7,004,769 - - - 1,000,000 2,643,380 3,129,606 2,939,325 3,608,509 2,210,602 2,663,037 14,587,023 17,987,731 17,660,917 24,432,049 26,625,368 20,292,126 22,944,402 28,642,535 33,899,291 38,936,554 - - - - 115,844 5,005,452 6,963,441 6,312,687 6,882,394 8,404,718 5,031,396 3,301,813 3,159,860 3,231,083 5,289,298 (78,071) (1,326,041) (971,152) (333,731) (177,229) 9,958,777 8,939,213 8,501,395 9,779,746 13,632,631 (184) CITY OF EL SEGUNDO FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED) LAST TEN FISCAL YEARS 2020 2021 2022 2023 2024 General fund: Nonspendable 7,937,643 163,037 310,048 295,310 5,034,175 Restricted 4,482,363 5,144,456 4,543,265 4,795,810 6,015,744 Assigned 2,534,891 2,561,037 1,397,494 2,149,724 2,053,287 Unassigned 20,559,971 29,110,741 34,799,542 41,405,846 40,652,393 Total general fund 35,514,868 36,979,271 41,050,349 48,646,690 53,755,599 All other governmental funds Nonspendable 85,049 - 20,442 Restricted 15,473,650 16,919,139 27,382,627 30,396,599 24,217,428 Assigned 4,161,175 4,314,909 3,587,359 5,855,027 19,459,186 Unassigned (46,117) (304,630) (201,767) (210,832) (4,539,205) Total all other governmental funds 19,673,757 20,929,418 30,788,661 36,040,794 39,137,409 (185) CITY OF EL SEGUNDO CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 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 Otherfinancing sources (uses): Transfers in Transfers out Subscription and Lease Payable Issuance Debt proceeds Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 2015 2016 2017 2018 2019 42,132,274 43,410,318 49,986,183 53,125,853 55,018,471 12,973,204 13,989,221 13,131,485 13,695,476 14,559,036 8,919,841 7,751,363 2,805,424 2,400,010 3,635,668 6,197,552 5,214,048 5,811,835 6,053,614 6,179,231 615,862 682,140 552,662 781,402 2,465,235 903,172 1,249,820 444,188 831,067 659,653 432,810 296,427 329,474 262,346 824,075 2,960,332 1,729,917 2,785,946 2,541,114 4,031,022 75,135,047 74,323,254 75,847,197 79,690,882 87,372,391 14,523,141 14,200,855 14,905,246 15,738,556 18,177,843 33,694,064 33,166,579 34,682,695 37,595,758 38,014,581 5,574,118 6,325,541 6,296,743 6,533,963 7,331,278 19,523,563 8,951,898 10,259,037 9,274,383 10,923,487 1,021,033 3,389,585 3,930,500 3,426,202 3,328,392 282,987 291,109 299,464 355,461 367,627 229,674 221,552 213,197 244,223 339,035 74,848,580 66,547,119 70,586,882 73,168,546 78,482,243 286,467 7,776,135 5,260,315 6,522,336 8,890,148 10,138,836 2,687,843 2,668,046 3,556,821 4,490,751 (10,338,840) (2,887,847) (2,668,046) (3,556,821) (4,490,751) (200,004) (200,004) - - - 86,463 7,576,131 5,260,315 6,522,336 8,890,148 0.69% 0.81 % 0.77% 0.86% 0.94% (186) CITY OF EL SEGUNDO CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED) LAST TEN FISCAL YEARS 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 Otherfinancing sources (uses): Transfers in Transfers out Subscription and Lease Payable Issuance Debt proceeds Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 2020 2021 2022 2023 2024 47,767,783 40,216,556 58,520,315 65,901,483 64,444,081 14,237,723 13,568, 547 13,633,658 15,959,308 17,194,407 2,391,795 3,165,467 6,340,815 9,017,703 5,993,772 4,817,551 4,836,554 5,892,477 7,194,633 6,733,219 3,472,256 457,983 (499,268) 4,019,927 9,112,616 367,045 297,702 427,604 464,676 419,632 6,293,956 977,823 1,442,250 240,864 518,448 3,359,551 2,248,806 3,170,444 2,833,632 4,726,367 82,707,660 65,769,438 88,928,295 105,632,226 109,142,542 18,964,880 32,183,298 19,313,626 19,575,451 20,699,211 40,124,678 142,081,284 33,635,862 35,104,337 36,645,220 7,630,503 13,005,985 9,540,381 7,955,021 8,877,454 9,499,235 12,616,931 6,686,963 9,888,009 10,655,775 3,162,263 3,008,119 3,393,300 5,383,125 13,340,898 380,281 43,200 458,053 7,350,230 7,677,262 326,380 190,955 1,969,789 3,262,777 3,227,344 80,088,220 203,129,772 74,997,974 88,518,950 101,123,164 2,619,440 (137,360,334) 13,930,321 17,113,276 8,019,378 1,389,000 1,805,956 10,126,878 13,853,856 26,429,941 (1,389,000) (1,820,956) (10,126,878) (18,923,545) (26,985,685) 804,887 741,890 140,095,398 - - - 140,080,398 - (4,264,802) 2,619,440 2,720,064 13,930,321 12,848,474 0.92% 0.12% 3.39% 12.06% 186,146 8,205,524 12.20% (187) CITY OF EL SEGUNDO PRINCIPAL SALES TAX PRODUCERS CURRENT YEAR AND NINE YEARS AGO 2023-24 2014-15 Taxpayer Business Type Taxpayer Business Type Aerospace Corporation Biotechnology Accuvant Office Equipment CaIportland Company Bldg.Matls-Whole Aerospace Corporation Biotechnology Chevron Service Stations Service Stations Best Buy Stores Furniture/Appliance Chick-Fil-A Restaurants BTAmericas Business Services Circle K Food Stores Food Markets Chevron Service Stations Service Stations Dick's Sporting Goods Recreation Products Circle K Food Stores Food Markets Homegoods Furniture/Appliance DDSIab Light Industry Impex Technologies Office Equipment Dick's Sporting Goods Recreation Products In-N-Out Burgers Restaurants Fl emi ng's Pri me Stea khouse Restaurants Insight Di rect USA I.T. Infrastructure Homegoods Furniture/Appliance Insight Public Sector Office Equipment Impex Technologies Office Equipment Jim and Jacks Auto Parts/Repair Interior Officesolutions Furniture/Appliance Karl Storz Endoscopy Office Equipment Karl Storz Endoscopy Office Equipment Kite Pharma Biotechnology Lululemon Apparel Stores Los Angeles Times Communications Light Industry Murad Skin Research Laboratories Chemical Products Luna Cycles Recreation Products Northrop Grumman Systems Auto Parts/Repair Nordstrom Department Store Depa rtment Stores Patterson Dental Supply Light Industry Patterson Dental Supply Light Industry PCM Gov Office Equipment Raising Cane's Chicken Fingers Restaurants Primary Color Systems Light Industry Ralph's Grocery Company Food Markets Ralph's Grocery Company Food Markets Raytheon Company Office Equipment Raytheon Company Office Equipment Rivia n Auto Sa I es - New The Boeing Company Auto Pa its/Reps i r The Boeing Company Auto Parts/Repair The Container Store Furniture/Appliance Topgolf Miscellaneous Retail Trace Light Industry Whole Foods Market Food Markets Whole Foods Market Food Markets Source: Avenu Insights & Analytics 10 CITY OF EL SEGUNDO PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2023-24 Percent of Total City Taxpayer Taxable Value ($) Taxable Value (%) Chevron USA Inc 2,748,216,011 15.64% SO XI Pct Two Tower Owner LLC 662,158,990 3.77% Raytheon Company 560,612,817 3.19% Boei ng Co 492,993,032 2.81 % Aerospace Corporation 376,323,403 2.14% FS Creit 555 Aviation LLC 209,610,000 1.19% 400 CG Owner LLC 185,997,049 1.06% SFII Flyte LLC 183,218,922 1.04% PES Partners LLC 182,928,824 1.04% WAS El Segundo 777 Aviation LP 182,274,354 1.04% 2121 Park Place Fee Owner CA LLC 164,018,108 0.93% TA 101 Conti nenta I LLC 148,499,989 0.85 % Gateway El Segundo Fee Owner LLC 133,862,275 0.76% Northrop Grumman Systems Corp 133,365,861 0.76% Kilroy Realty Finance Ptnshp 131,499,771 0.75% 800 Apol to Fee Owner Ca LLC 127,937,541 0.73% RAR2 Campus 2100 LLC 126,887,945 0.72% Equinix LLC 125,436,778 0.71% Street Reta i I Inc 120,817,594 0.69 % 1960 Grand Office Owner 1 LP 107,986,409 0.61% Trea Pacific Coast Highway LLC 100,250,896 0.57% Nash DC LLC 95,910,629 0.55% Hughes Aircraft Co 93,754,121 0.53% HC Hornet Way LLC 90,914,802 0.52% Ocotillo La Mariposa LLC 88,298,996 0.50% Pacific Corp Towers LLC Space Exploration Technologies Hines Reit El Segundo LP Mattel Inc. LA4 LLC Di rect TV Realty Assoc Fund IX LP Air Liquide 300 N Sepulveda Owner LLC Plaza CP LLC Digital 2260 East El Segundo L Continental Atrium Corp TRT Noip Maple El Segundo LP 101 Continental Partners LLC GI 2160 East Grand LLC CDC Mar Campus LLC Agnl Toys LP Total Top 25 Taxpayers 7,573,775,117 43.11% Total Taxable Value 17,568,226,032 100.00% Source: County Assessor data, Avenu Insights & Analytics Unitaryvalueis included inthetotal taxablevalue. 2014-15 Percent of Total City Taxable Value ($) Taxable Value (%) 1,814,187,714 21.50% 251,125,847 2.98% 414,784,681 4.92% 272,011,787 3.22% 155,594,586 1.84% 101,093,105 1.20% 166,802,324 1.98% 320,156,957 3.79% 169,243,731 2.01% 164,564,487 1.95% 128,580,894 1.52% 117,043,590 1.39% 109,962,425 1.30% 98,041,774 1.16% 77,887,820 0.92% 75,545,407 0.90% 74,203,760 0.88% 73,410,717 0.87% 71,982,874 0.85% 69,133,837 0.82% 56,848,873 0.67% 55,298,509 0.66% 53,510,318 0.63% 48,368,108 0.57% 46,108,386 0.55% 4,985,492,511 59.09% 8,437,404,651 100.00% 10 CITY OF EL SEGUNDO ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY' LAST TEN FISCAL YEARS Fiscal Year End Residential Property Commercial Property Industrial Property Other Property (1) Unsecured Property Less Tax- Exempt Property Taxable Assessed Value Total Direct Tax Rate (2) Estimated Actual Taxable Value (3) Factor of Taxable Assessed Value (3) Assessed Value as a Percentage of Actual Value 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 22,800,486,298 1.607303 62.22% 2020-21 3,272,541,827 5,624,003,706 1,806,225,832 3,050,851,815 1,682,078,566 32,055,686 15,403,646,060 1.178940 20,376,825,371 1.322857 75.59% 2021-22 3,493,519,690 5,936,659,391 2,046,612,970 2,174,990,747 1,624,771,162 32,620,246 15,243,933,714 1.174948 25,164,151,780 1.650765 60.58% 2022-23 3,733,003,477 6,343,430,626 2,171,490,360 2,064,362,857 1,804,669,235 47,074,440 16,069,882,115 1.196607 32,608,760,333 2.029185 49.28% 2023-24 3,939,075,077 6,693,035,456 2,240,561,848 2,823,771,719 1,913,681,807 41,899,875 17,568,226,032 1.177725 29,213,500,340 1.662860 60.14% Source: County Assessor data, Avenu Insights & Analytics Source: 2022-23 and prior years: City of El Segundo - FY 2023 ACFR Publication. State unitary property of $15,609,481 is included in other property. 1.) Other property for 2016-17 and prior represent the Secured Values. 2.) Total direct tax rate is represented byTRA09-849. 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. (190) CITY OF EL SEGUNDO DIRECT AND OVERLAPPING PROPERTY TAX RATES (RATE PER $100 OF TAXABLE VALUE) LAST TEN FISCAL YEARS General 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 COUNTY OF LOS ANGELES CITY OF EL SEGUNDO 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 0.936812 TOTAL 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 Override Assessments Metropolitan Water District 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 0.003500 El Segundo Unified School District 0.111700 0.111700 0.111700 0.177526 0.179923 0.177391 0.151816 0.148809 0.170118 0.153065 Community College 0.021199 0.022229 0.021555 0.023624 0.022639 0.022989 0.021160 TOTAL 0.115200 0.115200 0.115200 0.202225 0.205652 0.202446 0.178940 0.174948 0.196607 0.177725 TOTAL TAX RATE 1.115200 1.115200 1.115200 1.202225 1.205652 1.202446 1.178940 1.174948 1.196607 1.177725 Source: County Auditor/Controller data, Avenu Insights & Ana Iytics Source: 2022-23 and prior years: FY 2023 ACFR Publication. Tax Rate as represented by TRA 09-849 (191) CITY OF EL SEGUNDO PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Ended June 30 Taxes Levied forthe Fiscal Year Amount Percent of Levy Collections in Subsequent Years 1 Amount' Percent of Levy 1 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% 1,237,541 9,421,528 105.52% 2021 9,684,760 8,520,268 87.98% 64,417 8,584,685 88.64% 2022 9,578,660 9,584,651 100.06% (10,389) 9,574,262 99.95% 2023 10,090,686 10,116,935 100.26% 54,672 10,171,607 100.80% 2024 11,058,531 10,831,602 97.95% 10,831,602 97.95% Source: Los Angeles County Auditor Controller's Office 1 Fiscal Years 2021-2023 Collections in Subsequent Years, Amount, and Percent of Levy columns have been updated in Fiscal Year 2024 ACFR Statistical Section (192) CITY OF EL SEGUNDO RATIO OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (IN THOUSANDS, EXCEPT PER CAPITA) Outstanding General Bonded Debt General Tax Percent of Fiscal Year Obligation Allocation Certificates of Pension Assessed Per Ended i Bonds Bonds Participation Obligation 3 Total Value 2 Capita 2015 - 0.000% 2016 0.000% 2017 0.000% 2018 0.000% 2019 0.000% 2020 - - 0.000% 2021 140,095,398 140,095,398 909.500% 2022 144,135,000 144,135,000 945.520% 2023 137,600,000 137,600,000 856.260% 2024 130,865,000 130,865,000 744.900% 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 2000-2020 are 12 month reporting periods ending on September 30; Fiscal Year 2020-2021 is a 9 month reporting period ending on June 30; Fiscal Years 2022-current are 12 month reporting periods ending on June 30. 2 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 3 Fiscal Year 2022 Pension Obligation debt ending balance number have been updated in Fiscal Year 2023 ACFR Statistical Section (193) CITY OF EL SEGUNDO RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (IN THOUSANDS, EXCEPT PER CAPITA) Governmental Activities Financed Total Fiscal Year Purchase Loan Pension Leases Subscriptions Leases/ Governmental Ended lZ Obligation Obligation Obligation Payable Payable Loans Activities 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 2021 - - 140,095,398 - 8,159,767 148,255,165 2022 1,920,577 5,842,713 140,095,398 117,088 - - 147,975,776 2023 1,855,162 5,497,738 133,743,378 133,029 852,664 142,081,971 2024 1,785,158 5,142,862 127,196,958 77,040 881,092 135,083,110 Note: Deta i I s rega rd i ng the Ci ty's outsta ndi ng debt ca n be found i n the notes to thefinancial statements. i Fiscal Years 2000-2020 are 12 month reporting periods ending on September 30; Fiscal Year 2020-2021 is a 9 month reporting period endi ng on June 30; Fiscal Years 2022-current are 12 month reporting periods endi ng on June 30. Z Office of Economic Development (data shown is for Los Angeles County) (194) CITY OF EL SEGUNDO RATIO OF OUTSTANDING DEBT BY TYPE (CONTINUED) LAST TEN FISCAL YEARS (IN THOUSANDS, EXCEPT PER CAPITA) Fiscal Year Ended 1z Financed Purchase Obligation Bus ness-type Activities Loan Pension Leases Obligation Obligation Payable Total Business -type Activities Total Primary Government Percentage of Personal Income Debt Per Capita 2 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 2021 4,039,602 - 4,039,602 152,294,767 14.6% 2,430 2022 4,039,602 202,186 4,241,788 152,217,564 12.4% 2,114 2023 3,856,622 - 3,856,622 145,938,593 10.3% 1,738 2024 520,695 3,668,042 - 4,188,737 139,271,847 8.7% 1,482 Note: Details regardingthe City's outstanding debt can befound in the notes to thefinancial statements. 1 Fiscal Years 2000-2020 are 12 month reporting periods ending on September 30; Fiscal Year 2020-2021 is a 9 month reporting period ending on June 30; Fiscal Years 2022-current are 12 month reporting periods ending on June 30. 2 Office of Economic Development (data shown is for Los Angeles County) (195) This page intentionally left blank (196) CITY OF EL SEGUNDO DIRECT AND OVERLAPPING BONDED DEBT LAST TEN FISCAL YEARS 2023-2024 Assessed Valuation: $17,582,758,032 Total Debt City's Share of OVERLAPPING TAXAND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) Debt 6/30/24 Metropolitan Water District $ 18,210,000 0.454% $82,673 El Camino Community College District 447,104,356 11.883% 53,129,411 El Segundo Unified School District 103,600,493 100% 103,600,493 Manhattan Beach Unified School District 155,963,234 0.0010% 1,560 Wisebum Unified School District 123,686,771 70.975% 87,786,686 Centinela Valley Union High School District 230,179,380 34.159% 78,626,974 Centinela Valley Union High School District School Facilities Improvement District No. 2016-1 216,840,000 38.675% 83,862,870 TOTAL OVERLAPPING TAXAND ASSESSMENT DEBT $407,090,667 DIRECT AND OVERLAPPING GENERAL FUND DEBT: Los Angeles County General Fund Obligations $ 2,479,229,730 0.877% $ 21,742,845 Los Angeles County Superintendent of Schools Certificates of Participation 2,857,300 0.88% 25,059 Wisebum Unified School District General Fund Obligations 10,220,476 70.975% 7,253,983 City of El Segundo General Fund Obligations 7,886,152 100% 7,886,152 City of El Segundo Pension Obligation Bonds 127,196,958 100% 127,196,958 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 164,104,996 SUBTOTALS: TOTAL DIRECT DEBT $135,083,110 TOTAL OVERLAPPING DEBT $ 436,112,554 TOTALS: COMBINED TOTAL DIRECT AND OVERLAPPING DEBT $571,195,664 (2) (1) The percentage of ovedapping 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 lease obligations. Also excludes accreted value of capital appreciation bonds. Ratios to 2023-24 Assessed Valuation: Total Overlapping Tax and Assessment Debt 2.32% Total Direct Debt ($135,083,110) 0.77 % Combined Total Debt 3.25% Source: Avenu Insights & Analytics, California Municipal Statistics, Inc. (197) 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 I i mit CITY OF EL SEGUNDO LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2014-15 2015-16 2016-17 2017-18 2018-19 $ 10,038,433,763 $ 10,655,775,000 $ 10,973,796,359 $ 12,226,261,726 $ 13,067,718,573 25% 25% 25% 25% 25% 2,509,608,441 2,663,943,750 2,743,449,090 3,056,565,432 3,266,929,643 15% 15% 15% 15% 15% 376,441,266.11 399,591,563 411,517,363 458,484,815 490,039,446 $ 376,441,266 $ 399,591,563 $ 411,517,363 $ 458,484,815 $ 490,039,446 0.0% 0.0% 0.0% 0.0% 0.0% The Government Code of the State of Ca I ifornia provides for a lega I debt I i mit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of marketvalue. Effectivewith the 1981-82 fiscal year, each parcel is now assessed at 100%of marketvalue (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. M Assessed valuation Conversion percentage Assessed valuation Debt limit percentage Debt I i mit Total net debt a ppl ica bl e to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit CITY OF EL SEGUNDO LEGAL DEBT MARGIN INFORMATION (CONTINUED) LAST TEN FISCAL YEARS 2019-20 2020-21 2021-22 2022-23 2023-24 $ 14,185,553,887 $ 15,403,646,060 $ 15,243,933,714 $ 16,069,882,115 $ 17,568,226,032 25% 25% 25% 25% 25% 3,546,388,472 3,850,911,515 3,810,983,429 4,017,470,529 4,392,056,508 15% 15% 15% 15% 15% 531,958,271 577,636,727 571,647,514 602,620,579 658,808,476 - 140,095,398 144,135,000 137,600,000 130,865,000 $ 531,958,271 $ 577,636,727 $ 571,647,514 $ 602,620,579 $ 658,808,476 0.0% 24.3% 25.2% 22.8% 19.9% (199) CITY OF EL SEGUNDO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Year City Population (1) Personal Income (in thousands) (2) Per Capita Personal Income (2) Median Age (2) City Unemployment Rate (%) (3) 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% 2020-21 16,660 1,044,326 62,685 37.3 13.8% 2021-22 17,084 1,230,071 72,001 36.9 4.5% 2022-23 16,928 1,421,646 83,982 36.8 4.1% 2023-24 16,964 1,593,879 93,957 36.4 4.4% Source: Avenu Insights & Ana Iytics Source: 2022-23 and prior years: City of El segundo - FY 2023 ACFR Publication. 1.) Population Projections areprovided by the California Departmentof Finance Projections 2.) Data is provided by the U.S. Census Bureau. 3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. (200) CITY OF EL SEGUNDO PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2023-24 2017-18 Number of Percent of Total Number of Percent of Total Business Name Employees Employment (%) Employees Employment (%) Boeing Satellite Systems* 14,403 144.03% 2959 5.20% Raytheon Space & Airborne Syst 4,321 43.21% 5189 9.12% Northrop Grumman Corporation 2,649 26.49% 2960 5.20% Aerospace Corporation 2,522 25.22% 2711 4.76% Mattel Inc 1,785 17.85% 1674 2.94% Chevron Products Compa ny/USA i nc 1,216 12.16% 1103 1.94% Internet Brands Inc 460 4.60% 588 1.03% Infineon Technologies Americas Corp (formerly International Rectifier) 418 4.18% Karl StorzEndoscopyAmerica Inc 378 3.78% Big 5 Sporting Goods Corp** 275 2.75% Accenture 1685 2.96% Hea IthCa re Partners LLC 705 1.24% Time Warner Cable Information Services (CA) 700 1.23% Total Top 10 Employers 28,427 284.27% 20,274 33.15% Total City Labor Force (1) 10,000 Source: Avenu Insights& Ana Iytics Source: City of El Segundo -- FY 2017-18 ACFR Publication. Historical data unavailable (1) Total City Labor Force provided by EDD Labor Force Data. 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. (201) CITY OF EL SEGUNDO OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 Police: Arrests 1,057 721 592 568 953 Parking Citations Issued 9,404 7,200 8,955 10,227 12,247 Fire: Number of Emergency Cal Is 2,568 2,632 2,807 2,895 893 Inspections 2,203 1,531 1,209 1,919 905 Medical Responses 1,644 1,661 1,847 1,930 502 Public works: Street resurfacing (miles) - 0 1 2 6 Reconstruction (miles) - - - - New Street (mi I es) - - - - - ElectronicRecycling(pounds) N/A N/A N/A - 1,480 Paper Shred Recycling (pounds) 10,080 23,000 23,000 20,000 15,400 Parks, Recreation, and Library: (previously named Community Services) Number of recreation classes 1,389 1,056 833 997 1,019 Class registrations 8,021 6,657 6,615 7,574 4,098 Recreation Trips participants 1,535 89 20 926 1,784 Number of Reservations 9,342 4,779 5,624 5,397 5,563 Shuttles transported (riders) 30,052 7,320 4,781 6,252 5,532 Dial-A-RidewithLyftresidents 11,206 6,841 5,108 5,189 4,474 Homebound Meals 4,926 5,061 5,497 6,080 6,840 Finance: Business Licenses processed 5,812 7,172 7,236 6,610 6,992 Purchase Orders processed 427 476 547 464 416 Purchase Change Orders processed 118 103 136 174 141 Invoices processed 10,189 10,230 9,566 9,762 6,805 Checks processed 5,326 5,849 5,248 5,258 3,790 Cash Receipts processed (excluding Water) 35,143 33,075 31,559 27,722 54,264 Source: City of El Segundo (202) CITY OF EL SEGUNDO OPERATING INDICATORS BY FUNCTION (CONTINUED) LAST TEN FISCAL YEARS Police: Arrests Parking Citations Issued Fire: Number of Emergency Cal Is Inspections Medical Responses Public works: Street resurfacing (miles) Reconstruction (miles) New Street (mi I es) Electronic Recycling (pounds) Paper Shred Recycling (pounds) Parks, Recreation, and Library: (previously named Community Services) Number of recreation classes Class registrations Recreation Trips participants 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) 2020 2021' 2022 2023 2024 1,009 1,084 1,066 1,070 9,537 10,591 8,904 7,828 2,558 2,951 3,174 3,250 512 654 580 609 1,621 1,827 1,989 2,008 1 2.4 1.5 14.92 - - - 0.663 1,480 4,071 2,516 3,449 17,340 32,100 30,300 18,000 980 1,517 11574 1,690 5,387 18,233 10,873 19,855 762 * 114 30 23,841 29,968 35,419 42,626 1,968 1,782 2,884 4,221 2,194 ** 4,718 6,880 7,285 5,922 5,180 5,534 6,391 6,191 6,277 6,470 411 407 412 449 167 89 174 136 10,501 9,818 9,803 10,811 5,611 5,368 5,288 4,922 37,273 118,314 118,856 128,973 Source: City of El Segundo 'Information not collected from fiscal year 2020-2021 due to pandemic and staff shortages ZCompletion of El Segundo Blvd project, and availability of Measure M MSP grantfunds resulted in 14.9 miles of street resurfacing 3Completion of Nash St. Exchange Project resulted in 0.66 miles of new streets 'Number of recreation classes was incorrectly reported in FY2023, and is corrected in the current report *Due to COVI D-19, this program was not run during 2021/2022 FY **Dial -A -Ride ended when the pandemic impacted all Recreation & Parks department services; LYFTand Beach Shuttle (SWOOP) have replaced programs for Dial A Ride (203) CITY OF EL SEGUNDO FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 Function General Government 69 51 57 53 71 Public Safety 137 123 126 130 143 Public Works 30 31 30 29 26 Community & Cultural 80 76 74 115 106 Water 11 10 10 9 18 Sewer 6 6 10 6 6 Total 333 297 307 342 370 Source: City of El Segundo Payroll Division (204) CITY OF EL SEGUNDO FULL-TIME AND PART-TIME CITY EMPLOYEES BY FUNCTION (CONTINUED) LAST TEN FISCAL YEARS 2020 2021 2022 2023 2024 Function General Government 73 59 58 58 64 Public Safety 144 142 131 127 126 Public Works 40 27 24 24 29 Community & Cultural 93 149 152 254' 123 Water 15 10 11 12 10 Sewer 7 6 5 6 6 Total 372 393 381 481 358 Source: City of El Segundo Payroll Division 'Reported headcount rather than FTE; corrected in subsequent Fiscal Year (205) CITY OF EL SEGUNDO CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 Police: Stations 1 1 1 1 1 Fire: Firestations 2 2 2 2 2 Public works: Streets (miles) 55 55 55 55 55 Streetl i ghts 1,718 1,718 1,718 1,718 1,718 Traffic signals 55 55 55 55 55 Parks and recreation: Pa rks 22 22 22 22 22 Recreation Facilities 13 13 13 14 14 Number of Acres 91 91 91 91 91 Source: City of El Segundo (206) CITY OF EL SEGUNDO CAPITAL ASSET STATISTICS BY FUNCTION (CONTINUED) LAST TEN FISCAL YEARS 2020 2021 2022 2023 2024 Police: Stations 1 1 1 1 1 Fire: Firestations 2 2 2 2 2 Public works: Streets (miles) 55 55 55 55 55 Streetl i ghts 1,718 1,718 1718 1718 1742' Traffic signals 55 55 55 55 58' Parks and recreation: Pa rks 22 22 22 22 22 Recreation Facilities 14 14 14 14 14 Number of Acres 91 91 91 91 91 Source: City of El Segundo 'Completion of Nash St. Exchange Project resulted in additions of streetlights and traffic signals (207)