HomeMy WebLinkAbout2022-02-15 Agenda Packet - Hybrid
AGENDA
City Council/Public Financing Authority Regular Meeting
Tuesday, February 15, 2022
Study Session/Closed Session – 4:00 PM
Regular Meeting – 6:00 PM
MAYOR AND CITY COUNCIL
BARBARA DELGLEIZE, Mayor
MIKE POSEY, Mayor Pro Tem
RHONDA BOLTON, Councilmember
KIM CARR, Councilmember
DAN KALMICK, Councilmember
NATALIE MOSER, Councilmember
ERIK PETERSON, Councilmember
Council Chambers
2000 Main Street
Huntington Beach, CA 92648
-or-
Virtual via Zoom Webinar
STAFF
SEAN JOYCE, Interim City Manager
MICHAEL E. GATES, City Attorney
ROBIN ESTANISLAU, City Clerk
ALISA BACKSTROM, City Treasurer
IN-PERSON PUBLIC PARTICIPATION/ZOOM ACCESS: In keeping with the Governor’s mandate to limit in-person
gatherings that can spread COVID-19, the Tuesday, February 15, 2022 meeting remains virtually accessible. In
addition, the Council Chambers will be open for public attendance and masks are optional for those who are fully
vaccinated (with booster).
Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference (i.e., virtual using Zoom), or in
person if in part, State and Local officials continue to recommend measures to promote social distancing. In addition to this
hybrid format, alternate ways to view City Council meetings live or on-demand remain: livestreamed on HBTV Channel 3
(replayed on Wednesday’s at 10:00 a.m. and Thursday’s at 6:00 p.m.); live and archived meetings for on-demand viewing
accessed from https://huntingtonbeach.legistar.com/calendar; or, from any Roku, Fire TV or Apple device by downloading
the Cablecast Screenweave App and searching for the City of Huntington Beach channel.
PUBLIC COMMENTS: To ensure the public’s right to fully participate in providing meaningful public comments at the
February 15, 2022 City Council meeting, the Council Chambers will be open for public attendance to provide public
comments on agendized or non-agendized items. Individuals may also provide a comment from a virtual location by
entering Zoom Webinar ID 971 5413 0528 via computer device, or by phone at (669) 900-6833. The Zoom Webinar can be
accessed here: https://huntingtonbeach.zoom.us/j/97154130528. Instructions for those utilizing computer or telephone
devices to request to speak are provided in each section of the agenda where public comments are accepted.
Members of the public unable to personally participate in the meeting but interested in communicating with the City Council
on agenda-related items are encouraged to submit a written (supplemental) communication via email at
SupplementalComm@Surfcity-hb.org, or City.Council@surfcity-hb.org. Supplemental Communications are public record,
and if received by 2:00 PM on the day of the meeting, will be distributed to the City Council prior to consideration of agenda-
related items, posted to the City website, and announced, but not read, at the meeting. Communications received following
the 2:00 PM deadline will be incorporated into the administrative record.
MEETING ASSISTANCE NOTICE: In accordance with the Americans with Disabilities Act, services are available to members
of our community who require special assistance to participate in public meetings. If you require special assistance, 48-hour
prior notification will enable the City to make reasonable arrangements for an assisted listening device (ALD) for the hearing
impaired, American Sign Language interpreters, a reader during the meeting and/or large print agendas. Please contact
the City Clerk's Office at (714) 536-5227 for more information.
1
AGENDA February 15, 2022City Council/Public Financing
Authority
4:00 PM - COUNCIL CHAMBERS
CALL TO ORDER
ROLL CALL
Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3-Minute
Time Limit) - At approximately 4:00 PM, individuals wishing to provide a comment on item(s)
scheduled for Study Session or Closed Session may do so either in person by filling out a
Request to Speak form delivered to the City Clerk, via computer through Zoom Webinar ID 971
5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public
Comments, in-person participants will be called to speak first. Zoom Webinar participants wishing
to speak will be provided a 15-minute window to select the “Raise Hand” feature in the Webinar
Controls section. Attendees entering the Webinar and requesting to speak by phone can enter *9
to enable the “Raise Hand” feature, followed by the *6 prompt that unmutes their handheld device
microphone. Individuals will be prompted to speak when the Clerk announces their name or the
last three digits of their phone number. After a virtual speaker concludes their comment, their
microphone will be muted but they may remain in Webinar attendance for the duration of the Study
Session. All speakers are encouraged, but not required to identify themselves by name. Each
speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time
allowance.
STUDY SESSION
22-1311.Discussion of the Policy Issues concerning the Cannabis-related
Taxation and Regulation
RECESS TO CLOSED SESSION
CLOSED SESSION ANNOUNCEMENT(S)
22-1332.Mayor Delgleize to Announce: Pursuant to Government Code §
54957.6, the City Council takes this opportunity to publicly introduce
and identify designated labor negotiator Sean Joyce, Interim City
Manager, who will be participating in today's Closed Session
discussions regarding labor negotiations with: Non-Represented
(Non-Associated) Employees (NA)
Page 1 of 7
2
AGENDA February 15, 2022City Council/Public Financing
Authority
22-1343.Mayor Delgleize to Announce: Pursuant to Government Code §
54957.6, the City Council takes this opportunity to publicly introduce
and identify designated labor negotiators: Sean Joyce, Interim City
Manager and Brittany Mello, Administrative Services Director, who
will be participating in today's Closed Session discussions regarding
labor negotiations for: City Manager
CLOSED SESSION
22-1294.CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section
54957.6.) Agency designated representatives: Sean Joyce, Interim
City Manager. Employee Organizations: Non-Represented
(Non-Associated) Employees (NA)
22-1305.CONFERENCE WITH LABOR NEGOTIATORS (Unrepresented
Employee) Government Code section 54957.6. Title: City Manager,
City Designated Representatives: Sean Joyce, Interim City Manager
and Brittany Mello, Administrative Services Director
22-1406.CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION.
(Paragraph (1) of subdivision (d) of Section 54956.9). Name of case:
Hernandez (Angela) v. City of Huntington Beach, et al., OCSC Case
No. 30-2020-01137506
6:00 PM – COUNCIL CHAMBERS
RECONVENE CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING
ROLL CALL
Peterson, Bolton, Posey, Delgleize, Carr, Moser, Kalmick
PLEDGE OF ALLEGIANCE
INVOCATION
In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any
faith or belief. Neither the City nor the City Council endorses any particular religious belief or form
of invocation.
21-9647.Zarathushti Maneck Bhujwala of the Zoroastrian Community and
Page 2 of 7
3
AGENDA February 15, 2022City Council/Public Financing
Authority
member of the Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY
AWARDS AND PRESENTATIONS
22-1258.Mayor Delgleize to present the Mayor’s HB Excellence Award for the
month of February to Justin Torres, Landscape Maintenance
Supervisor, Department of Public Works
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
PUBLIC COMMENTS (3-Minute Time Limit) - At approximately 6:00 PM, individuals wishing to
provide a comment on agendized or non-agendized items may do so either in person by filling out
a Request to Speak form delivered to the City Clerk, via computer through Zoom Webinar ID 971
5413 0528, or Zoom Webinar by phone by calling (669) 900-6833. Once the Mayor opens Public
Comments, in-person participants will be called to speak first. Zoom Webinar participants wishing
to speak will be provided a 15-minute window to select the “Raise Hand” feature in the Webinar
Controls section. Attendees entering the Webinar and requesting to speak by phone can enter *9
to enable the “Raise Hand” feature, followed by the *6 prompt that unmutes their handheld device
microphone. Individuals will be prompted to speak when the Clerk announces their name or the
last three digits of their phone number. After a virtual speaker concludes their comment, their
microphone will be muted but they may remain in Webinar attendance for the duration of the
meeting. All speakers are encouraged, but not required to identify themselves by name. Each
speaker may have up to 3 minutes unless the volume of speakers warrants reducing the time
allowance.
While the City Council welcomes public involvement and free speech, it rejects comments from
anyone that are discriminatory, defamatory or otherwise not protected speech. Those comments
will not inform nor be considered by the City Council and may be cause for the Mayor to interrupt
the public speaker. Such public comments will not be consented to or otherwise adopted by the
City Council in its discussions and findings for any matter tonight.
COUNCIL COMMITTEE - APPOINTMENTS - LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
CITY MANAGER'S REPORT
CITY CLERK'S REPORT
22-0829.Presentation on the Safe and Sane Fireworks Stand Application and
Lottery Process for 2022
Page 3 of 7
4
AGENDA February 15, 2022City Council/Public Financing
Authority
22-12610.City Archivist Kathie Schey to announce receipt of a third digitization
grant award from California Revealed, an initiative of the California
State Library
CONSENT CALENDAR
22-08611.Approve and Adopt Minutes
Approve and adopt the City Council/Public Financing Authority regular meeting minutes
dated February 1, 2022, as written and on file in the office of the City Clerk.
Recommended Action:
21-101812.Reaffirm adoption of Resolution No. 2021-62 finding a proclaimed
state of emergency continues to impact the ability to meet safely in
person, and allows meetings of the City Council and all City boards,
commissions and committees to be conducted remotely as needed
in compliance with new Brown Act provisions identified in Assembly
Bill 361
Reaffirm Resolution No. 2021-62, “A Resolution of the City Council of the City of
Huntington Beach, California, finding that the proclaimed state of emergency continues to
impact the ability to meet safely in person.”
Recommended Action:
22-04713.Award and authorize the execution of a construction contract with
Orion Construction Corporation, in the amount of $3,486,243 for the
McFadden Sewer Lift Station Replacement Project, CC-1610;
approve appropriation of funds and declare Arnaz Engineering
Contractors, Inc. as non-responsive
A) Appropriate $1,403,302 from the Sewer Service Fund (511) to Account
51189016.82600; and,
B) Declare the first apparent lowest bid from Arnaz Engineering Contractors, Inc. as
non-responsive; and ,
C) Accept the second lowest responsive and responsible bid submitted by Orion
Construction Corporation, in the amount of $3,486,243; and ,
D) Authorize the Mayor and City Clerk to execute a construction contract in a form
Recommended Action:
Page 4 of 7
5
AGENDA February 15, 2022City Council/Public Financing
Authority
approved by the City Attorney.
22-05114.Accept the lowest responsive and responsible bid, approve
appropriation of funds and authorize execution of a construction
contract with RJ Noble Company in the amount of $2,658,630 for the
Zone 5 Overlay Project, CC-1638
A) Accept the lowest responsive and responsible bid submitted by RJ Noble Company in
the amount of $2,658,630; and,
B) Appropriate $1,154,500 from the undesignated Measure M fund balance to account
21390002.82300; and,
C) Authorize the Mayor and City Clerk to execute a construction contract in a form
approved by the City Attorney.
Recommended Action:
22-07815.Reject all bids for the Storm Water Pump Station Facility
Improvements Project CC-1657; update specifications and rebid the
project
Reject all bids for the Storm Water Pump Station Facility Improvements Project CC -1657,
update project specifications and the rebid the project .
Recommended Action:
PUBLIC HEARING
Individuals wishing to provide a comment on an item scheduled for Public Hearing may do so
either in person by filling out a Request to Speak form delivered to the City Clerk, via computer
through Zoom Webinar ID 971 5413 0528, or Zoom Webinar by phone by calling (669) 900-6833.
Once the Mayor opens Public Comments, in-person participants will be called to speak first. Zoom
Webinar participants wishing to speak will be provided a 15-minute window to select the “Raise
Hand” feature in the Webinar Controls section. Attendees entering the Webinar and requesting to
speak by phone can enter *9 to enable the “Raise Hand” feature, followed by the *6 prompt that
unmutes their handheld device microphone. Individuals will be prompted to speak when the Clerk
announces their name or the last three digits of their phone number. After a virtual speaker
concludes their comment, their microphone will be muted but they may remain in Webinar
attendance for the duration of the meeting. All speakers are encouraged, but not required to
identify themselves by name. Each speaker may have up to 3 minutes unless the volume of
speakers warrants reducing the time allowance.
22-08716.Approve for introduction Ordinance No. 4234 approving Zoning Text
Amendment (ZTA) No. 21-006 establishing electric vehicle charging
Page 5 of 7
6
AGENDA February 15, 2022City Council/Public Financing
Authority
station sign standards
PLANNING COMMISSION AND STAFF RECOMMENDATION:
A) Find that Zoning Text Amendment No. 21-006 is categorically exempt pursuant to City
Council Resolution No. 4501, Class 20, which supplements the California Environmental
Quality Act (CEQA); and,
B) Approve Zoning Text Amendment No. 21-006 with findings (Attachment No. 1) by
approving for introduction City Council Ordinance No. 4234, “An Ordinance of the City of
Huntington Beach Amending Chapter 233 of the Huntington Beach Zoning and
Subdivision Ordinance Establishing Electric Vehicle Charging Station Sign Standards
(Zoning Text Amendment No. 21-006)” (Attachment No. 2).
Recommended Action:
ADMINISTRATIVE ITEMS
22-10717.Year-End Audit Results for the FY 2020/21 Annual Comprehensive
Financial Report (ACFR) and FY 2021/22 Mid-Year Budget
Adjustments
A) Receive and File the FY 2020/21 Annual Comprehensive Financial Report and other
auditor issued reports; and,
B) Approve mid-year budget adjustments to the FY 2021/22 Revised Budget in the funds
and by the amounts contained in Attachment 3; and,
C) Authorize additional Professional Services authority in the Fiscal Year 2021/22
Revised Budget in the departments and by the amounts contained in Attachment 4; and,
D) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to
Agreement between the City of Huntington Beach and National Council for Community
Development (NDC) for Technical Assistance Services” (Attachment 5); and,
E) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to
Agreement between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis
Response Program” (Attachment 6).
Recommended Action:
COUNCILMEMBER ITEMS
22-13218.Submitted by Councilmember Kalmick - Updating Bolsa Chica
Page 6 of 7
7
AGENDA February 15, 2022City Council/Public Financing
Authority
Annexation Feasibility Study
Direct staff to undertake an update of the Bolsa Chica Annexation Feasibility Study and
return to Council with a Study Session upon completion of that update, at which time the
Council can discuss the merit of annexation.
Recommended Action:
22-13719.Submitted by Mayor Delgleize, Councilmember Carr and
Councilmember Kalmick - Hosting a Senior Resource Fair in
Huntington Beach
Direct staff to work with the Senior Center and community partners to plan and implement
a one-day senior resource fair, targeting mobile home park residents and low-income
seniors in the community.
Recommended Action:
COUNCILMEMBER COMMENTS (Not Agendized)
ADJOURNMENT
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday, March 1, 2022, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street,
Huntington Beach, California.
INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND
STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT
http://www.huntingtonbeachca.gov
Page 7 of 7
8
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-131 MEETING DATE:2/15/2022
Discussion of the Policy Issues concerning the Cannabis-related Taxation and Regulation
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™9
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-133 MEETING DATE:2/15/2022
Mayor Delgleize to Announce: Pursuant to Government Code § 54957.6, the City Council
takes this opportunity to publicly introduce and identify designated labor negotiator Sean
Joyce, Interim City Manager, who will be participating in today's Closed Session discussions
regarding labor negotiations with: Non-Represented (Non-Associated) Employees (NA)
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™10
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-134 MEETING DATE:2/15/2022
Mayor Delgleize to Announce: Pursuant to Government Code § 54957.6, the City Council
takes this opportunity to publicly introduce and identify designated labor negotiators: Sean
Joyce, Interim City Manager and Brittany Mello, Administrative Services Director, who will be
participating in today's Closed Session discussions regarding labor negotiations for: City
Manager
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™11
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-129 MEETING DATE:2/15/2022
CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code section 54957.6.) Agency designated
representatives: Sean Joyce, Interim City Manager. Employee Organizations: Non-
Represented (Non-Associated) Employees (NA)
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™12
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-130 MEETING DATE:2/15/2022
CONFERENCE WITH LABOR NEGOTIATORS (Unrepresented Employee) Government Code
section 54957.6. Title: City Manager, City Designated Representatives: Sean Joyce, Interim
City Manager and Brittany Mello, Administrative Services Director
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™13
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-140 MEETING DATE:2/15/2022
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION. (Paragraph (1) of subdivision
(d) of Section 54956.9). Name of case: Hernandez (Angela) v. City of Huntington Beach, et al.,
OCSC Case No. 30-2020-01137506
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™14
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:21-964 MEETING DATE:2/15/2022
Zarathushti Maneck Bhujwala of the Zoroastrian Community and member of the Greater
Huntington Beach Interfaith Council
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™15
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-125 MEETING DATE:2/15/2022
Mayor Delgleize to present the Mayor’s HB Excellence Award for the month of February to
Justin Torres, Landscape Maintenance Supervisor, Department of Public Works
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™16
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-082 MEETING DATE:2/15/2022
Presentation on the Safe and Sane Fireworks Stand Application and Lottery Process for 2022
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™17
SAFE AND SANE
FIREWORKS STAND
APPLICATION AND
LOTTERY PROCESS
2022
18
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
Application Period: March 1 through March 31
Permits: The maximum number of permits that may
be issued during any one calendar year shall be
fifteen, with a maximum number of five permits
issued to qualified organizations in each of the
following categories:
Civic Organizations
High School
Youth Sports
19
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
CIVIC ORGANIZATIONS (5):
Organizations operating within the City whose sole
purpose is for civic betterment or charitable or
religious purposes to and for the citizens of Huntington
Beach –EXCLUDES high school extracurricular
activities or youth or adult sports groups
Approved applications will be entered into a lottery
drawing held at the April 19 City Council meeting
20
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
HIGH SCHOOL (5):
High schools operating within the City that agree to
use the proceeds for the benefit of valid student
extracurricular activities/sports shall be allowed to
submit one application
Each public high school may be awarded one
permit; upon application receipt and approval,
each high school shall hold a lottery among its
student clubs and organizations, and can dedicate
its stand to not more than two groups
21
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
A private high school may submit an
application for the fifth high school permit
If no private high school applies, the four
public high schools will be entered into the
lottery drawing for the fifth high school permit
22
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
YOUTH SPORTS (5):
Organizations operating within the City whose
main purpose is to benefit a valid youth sports
activity –EXCLUDES individual club or travel sports
teams, or high school extracurricular
activities/sports groups
Approved applications will be entered into a
lottery drawing held at the April 19 City Council
meeting
23
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
Prior to March 1, applicants successful in the
2021 application process will be notified by
email of the 2022 process; and,
A public announcement regarding the 2022
application process will be posted to local
social media sites
24
2022 FIREWORKS STAND
APPLICATION/LOTTERY PROCESS
At the conclusion of the lottery drawing held on April 19, representatives from the Fire Department will contact successful applicants to explain what happens next, and to distribute temporary fireworks stand sales applications.
For more information, visit these online resources:
Fireworks Information –2022 http://www.huntingtonbeachca.gov/fireworks/
HB Municipal Code Chapter 5.90 –Fireworks
25
QUESTIONS?
26
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-126 MEETING DATE:2/15/2022
City Archivist Kathie Schey to announce receipt of a third digitization grant award from
California Revealed, an initiative of the California State Library
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™27
California State Library Initiative
Digitization, Preservation and On-Line Access
Fully Awarded 3 Years in a row
66 films –more than our first 2 years
combined!
Content Focus –
Surf Museum Construction
Early Bolsa Chica Preservation
American Trader Oil Spill
28
No Cost to City, Thousands of $ in Value
Digitization
Free on-line hosting
Cal Revealed Website
Internet Archive
Digital Public Library of
America
University of California
Calisphere
29
Outreach –Thousands of Viewers Worldwide!!!
ABC/Fremantle Productions “Barons”
Outreach and Online Access:
Innovations from Smaller Institutions
30
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-086 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Robin Estanislau, CMC, City Clerk
PREPARED BY:Robin Estanislau, CMC, City Clerk
Subject:
Approve and Adopt Minutes
Statement of Issue:
The City Council/Public Financing Authority regular meeting minutes of February 1, 2022, require
review and approval.
Financial Impact: None.
Recommended Action:
Approve and adopt the City Council/Public Financing Authority regular meeting minutes dated
February 1, 2022, as written and on file in the office of the City Clerk.
Alternative Action(s):
Do not approve and/or request revision(s).
Analysis: None
Environmental Status: Non-Applicable
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. February 1, 2022 CC/PFA regular meeting minutes
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™31
Minutes
City Council/Public Financing Authority
City of Huntington Beach
Tuesday, February 1, 2022
5:00 PM – Closed Session
6:00 PM – Regular Meeting
Civic Center, 2000 Main Street
Huntington Beach, California 92648
or Virtual via Zoom
A video recording of the 5:00 PM and 6:00 PM portions of this meeting
is on file in the Office of the City Clerk, and archived at
www.surfcity-hb.org/government/agendas/
5:00 PM - COUNCIL CHAMBERS
CALLED TO ORDER — 5:00 PM
ROLL CALL
Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
Absent: None
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS PERTAINING TO CLOSED SESSION:
(Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications received by her office following distribution of the Council Agenda packet:
Closed Session
#3 (22-095) Email communication received regarding Pacific Airshow Refunds.
PUBLIC COMMENTS PERTAINING TO CLOSED SESSION ITEMS (3-Minute Time Limit) — None
A motion was made by Moser, second Carr to recess to Closed Session for Items 2 – 4. With no
objections, the motion carried.
RECESSED TO CLOSED SESSION — 5:05 PM
CLOSED SESSION ANNOUNCEMENT(S)
1. 22-089 Mayor Delgleize Announced: Pursuant to Government Code § 54957.6, the City
Council takes this opportunity to publicly introduce and identify designated labor
negotiator Sean Joyce, Interim City Manager; also in attendance: Brittany Mello,
Director of Administrative Services, who will be participating in today’s Closed
Session discussions regarding labor negotiations with: Non-Represented (Non-
Associated) Employees (NA)
32
CLOSED SESSION
2. 22-085 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION. (Paragraph (1) of
subdivision (d) of Section 54956.9). Name of case: Davis (Kesean Harvey) v. City of
Huntington Beach, et al., USDC Case No.: 8:21-cv-01032-JVS (ADSx).
3. 22-095 CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION. Significant
Exposure to Litigation Pursuant to Paragraph (2) of Subdivision (d) of Section
54956.9: Number of cases, one (1) - Threat of Litigation re Oil Spill Air Show.
4. 22-088 Pursuant to Government Code § 54957.6, the City Council recessed into Closed
Session to meet with its designated labor negotiator: Sean Joyce, Interim City
Manager; also in attendance: Brittany Mello, Director of Administrative Services,
regarding the following: Non-Represented (Non-Associated) Employees (NA).
6:00 PM — COUNCIL CHAMBERS
RECONVENED CITY COUNCIL/PUBLIC FINANCING AUTHORITY MEETING — 6:01 PM
ROLL CALL
Present: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
Absent: None
PLEDGE OF ALLEGIANCE — Led by Councilmember Moser
INVOCATION
In permitting a nonsectarian invocation, the City does not intend to proselytize or advance any faith or
belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.
5. 21-963 Rev. Steve Wright of St. Peter’s by the Sea Presbyterian Church, and member of the
Greater Huntington Beach Interfaith Council
CLOSED SESSION REPORT BY CITY ATTORNEY — None
AWARDS AND PRESENTATIONS
6. 22-083 Mayor Delgleize proclaimed February as Black History Month
Mayor Delgleize announced that this year's theme for Black History Month is Health and Wellness, and a
time to honor and reflect on the contributions, struggles and legacy of African-Americans. Mayor
Delgleize announced that the Human Relations Committee, in partnership with Huntington Beach public
libraries, would be presenting a film series featuring African-American stories and storytellers beginning
February 15 through the City's YouTube Channel, and HBTV Channel 3. Additional information is
available City's Human Relations Committee webpage.
33
7. 22-063 Mayor Delgleize called on Orange County Mosquito and Vector Control District
(OCMVCD) Communications Director, Lora Young to provide information on the
District’s Sterile Insect Technique Technology program and to recognize Mayor Pro
Tem Posey for his service as 2021 OCMVCD President of the Board of Trustees
Lora Young, Communications Director, Orange County Mosquito and Vector Control District, presented a
PowerPoint Communication titled Invasive Aedes Mosquitoes and SIT, with slides entitled: Scope and
Governance, What is a Vector?, Mosquitoes (2), How OCMVCD Controls Mosquitoes, Service Request
Data, Life Cycle of Aedes Mosquito, Invasive Aedes, Impacts to Orange County, Maintain Your Drain,
Controlling for Aedes Mosquitoes, What is SIT, Different SIT Techniques, What you need to know, SIT
in Orange County (2), and Questions.
Ms. Young presented Mayor Pro Tem Posey with a plaque and Orange County Mosquito and Vector
Control District (OCMVCD) jacket to acknowledge his service as 2021 OCMVCD Board of Trustees
President. Mayor Pro Tem Posey congratulated Ms. Young for recently being promoted to the position
of Assistant District Manager in conjunction with her Communications Director position.
Mayor Delgleize and Ms. Young discussed how Aedes Mosquitoes were introduced to California, and
Ms. Young explained some people's strong reaction to Aedes bites because the mosquitoes are so new
to the area and most people may have not yet developed natural immunity.
Councilmember Carr and Ms. Young discussed that the Sterile Insect Technique (SIT) plan would be
implemented March through October, or during the mosquito season.
ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution)
Pursuant to the Brown "Open Meetings" Act, City Clerk Robin Estanislau announced supplemental
communications that were received by her office following distribution of the Council Agenda packet:
Awards and Presentations
#7 (22-063) PowerPoint Communication titled Invasive Aedes Mosquitoes and SIT received from Lora
Young, Orange County Mosquito and Vector Control Communications Director.
City Manager's Report
#8 (22-076) PowerPoint Communication titled Huntington and Talbert Channels Update received from
Sean Crumby, Director of Public Works.
#8 (22-076) Fourteen (14) email communications received regarding the proposed "Trails to the Sea"
project.
Consent Calendar
#15 (22-069) Inter-Departmental Communication received from Sean Joyce, Interim City Manager,
requesting the removal of the item so that it can be reviewed by the Intergovernmental
Review Committee (IRC) and then presented to Council at a future date.
Administrative Items
#18 (22-074) PowerPoint Communication titled Community Choice Aggregators (CCA) — Orange
County Power Authority Rate Selection received from Sean Joyce, Interim City Manager.
#18 (22-074) Eighty-four (84) email communications received regarding the Orange County Power
Authority (OCPA) Default Rate Selection.
34
Councilmember Items
#19 (22-079) Email received regarding the proposed blood drive at a City of Huntington Beach facility.
PUBLIC COMMENTS (2-Minute Time Limit) — 26 In-Person and 26 Call-In Speakers
The number [hh:mm:ss] following the speakers' comments indicates their approximate starting time in
the archived video located at http://www.surfcity-hb.org/government/agendas.
Carol Rohr, President, Skandia Home Owners Association, was called to speak and described the
hardships created by predatory mobile home park owners, thanked the City Council for their support, and
encouraged their efforts to place a mobile home carve out amendment to City Charter Section 803 on the
November 2022 election. (00:33:15)
Robert Herold, 90-year-old resident of Skandia Mobile Home Park, was called to speak and shared
details on the lease agreements that new owner IPG is implementing, including what he believes are
unreasonable lease increases for fixed-income residents. (00:35:02)
Patricia Taylor, a resident of Rancho Huntington Mobile Home Park, was called to speak and asked that
City Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (00:37:24)
Melanie Garrison, a 24-year resident of Skandia Mobile Home Park, was called to speak and asked that
City Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (00:39:40)
Suzan Neil, a resident of Skandia Mobile Home Park, was called to speak and asked that City Council
support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022
ballot. (00:40:55)
Jeanne Farrens, a resident of Skandia Mobile Home Park, was called to speak and asked that City
Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (00:42:03)
Lynn Plumb, widow of a veteran living in Skandia Mobile Home Park, was called to speak and asked that
City Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (00:43:24)
Dan Pantano, a resident of Skandia Mobile Home Park, was called to speak and asked that City Council
approve a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot.
(00:45:39)
Gina Pantano, a resident of Skandia Mobile Home Park, was called to speak and asked that City Council
approve a mobile home carve out amendment to City Charter Section 803 on the November 2022 ballot.
(00:47:37)
Joanne Purdie, a resident of Skandia Mobile Home Park, was called to speak and asked that City
Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (00:49:53)
35
Michael was called to speak and asked that City Council vote to help people keep their mobile homes.
(00:51:37)
Karen, a resident of Shore Cliff Mobile Home Park, was called to speak and asked that City Council
support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022
ballot. (00:52:04)
Tim Geddes, 37-year resident of Huntington Beach and former member of the Mobile Home Advisory
Board, was called to speak and shared his opinions related to some mobile home park acquisitions by
corporate investment groups, which he believes has resulted in great harm to the park residents. He
further stated that local government can no longer look the other way, but must act now and act
decisively. (00:53:34)
Vicki DiPaolo was called to speak and stated her support for Administrative Items #18 regarding Orange
County Power Authority (OCPA) 100% Renewable Choice as the default energy product offering for
residential and commercial customers in Huntington Beach. (00:55:34)
Mary Jo Baretich, 39-year resident at Cabrillo Beachfront Mobile Home Park, was called to speak and
asked that City Council support placing a mobile home carve out amendment to City Charter Section 803
on the November 2022 ballot. (00:56:54)
Damon Mircheff, Chair of the City of Huntington Beach Charter Review Committee, was called to speak
and shared that this Committee is charged to think critically regarding best practices for good
government as the City grows and evolves. Mr. Mircheff described the deliberative process and the
commitment of Committee members. (00:59:07)
CJ Ray, Vice Chair of the City of Huntington Beach Charter Review Committee, was called to speak and
encouraged residents to get involved and participate in the Charter Review process, thanked
Councilmembers for their appointments to this Committee, and thanked staff for their support throughout
the process. (01:01:19)
Pano Frousiakis, Candidate for City Council in 2022, was called to speak and shared his opposition to
the Orange County Power Authority (OCPA) as the provider for City of Huntington Beach energy, and his
opposition to The York, a new high-density development planned on Beach Boulevard at Yorktown.
(01:02:56)
Danny Gray, Climate Reality Project OC member, resident of Capistrano Beach and supporter of the
Surfrider Foundation, was called to speak and shared his support for Administrative Items No. 18
regarding Orange County Power Authority (OCPA) 100% Renewable Choice as the default energy
product offering for residential and commercial customers in Huntington Beach. (01:05:09)
Gary Hann, owner of a mobile home in Skandia Mobile Home Park, was called to speak and asked that
City Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (01:07:03)
Michael Lugenbuehl, resident in Skandia Mobile Home Park, was called to speak and asked that City
Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (01:09:21)
36
Sheila Lugenbuehl, a resident of Skandia Mobile Home Park, was called to speak and asked that City
Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (01:11:20)
Sandy Smallshaw, a resident of Huntington Beach since 1989, was called to speak and stated her
support for Administrative Items No. 18 regarding Orange County Power Authority (OCPA) 100%
Renewable Choice as the default energy product offering for residential and commercial customers in
Huntington Beach. (01:12:02)
Linda Kraemer, Co-Chair, Climate Reality Project OC, was called to speak and stated her support for
Administrative Items No. 18 regarding Orange County Power Authority (OCPA) 100% Renewable Choice
as the default energy product offering for residential and commercial customers in Huntington Beach.
(01:14:08)
Cory Johnson, a 23-year resident of Huntington Beach, was called to speak and stated his support for
Administrative Items No. 18 regarding Orange County Power Authority (OCPA) 100% Renewable Choice
as the default energy product offering for residential and commercial customers in Huntington Beach.
(01:16:16)
Austin Edsell, a resident of Huntington Beach, was called to speak and stated his support for
Administrative Items No. 18 regarding Orange County Power Authority (OCPA) Basic Choice as the
default energy product offering for residential and commercial customers in Huntington Beach. (01:18:16)
Caller Richard Smith, a retired veteran and resident of Skandia Mobile Home Park, was invited to speak
and asked that City Council support placing a mobile home carve out amendment to City Charter Section
803 on the November 2022 ballot. (01:20:12)
Caller Ruben, a veteran and resident of Skandia Mobile Home Park, was invited to speak and asked that
City Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (01:22:36)
Caller Bob Mark was invited to speak and stated his disappointment in the Re-scope of Huntington and
Talbert Channels Effort, and stated if plans proceed to provide a walking path along Huntington Beach
Channel it will negatively impact the protected wetlands, and asked that any new plans eliminate use of
any Channel roads. (01:24:19)
Caller Paul Engstrom was invited to speak and asked that City Council support placing a mobile home
carve out amendment to City Charter Section 803 on the November 2022 ballot. (01:27:08)
Caller Kim Casey, a resident of Skandia Mobile Home Park, was invited to speak and asked that City
Council support placing a mobile home carve out amendment to City Charter Section 803 on the
November 2022 ballot. (01:28:28)
Caller Nick Pezzaniti, a resident of Huntington Beach whose home backs to the Talbert Channel, was
invited to speak and stated his opposition to having the Channel service roads turned into walking trails
as it will remove all privacy to residents' back yards. (01:29:27)
Caller Chris Button, who lives adjacent to the Huntington Channel, was invited to speak and stated his
opposition to having the Channel roads turned into unsafe trails at major street crossings. (01:31:15)
37
Caller Trent Harris, whose home backs to the Talbert Channel, was invited to speak and stated his
opposition to having the Channel service roads turned into walking trails as it will remove all privacy to
residents' back yards, as well as create unsafe street crossings. (01:32:12)
Caller Autumn Digiovanni, a south Huntington Beach resident whose home backs up to Talbert Channel,
was invited to speak and stated her opposition to having Channel service roads turned into walking trails
as it will remove all privacy to residents' back yards, as well as making it harder for the schools adjacent
to any Channel to secure their premises for student safety. (01:33:45)
Caller Ray Scrafield, an Army veteran and 11-year resident of Skandia Mobile Home Park, was invited to
speak and shared details on the lease agreements that new owner IPG is implementing, including what
he believes are unreasonable lease increases for fixed-income residents, and asked that City Council
support placing a mobile home carve out amendment to City Charter Section 803 on the November 2022
ballot. (01:36:17)
Caller Steven Shepherd was invited to speak and stated his support for Administrative Items No. 18
regarding Orange County Power Authority (OCPA) 100% Renewable Choice as the default energy
product offering for residential and commercial customers in Huntington Beach. Mr. Shepherd also
noted that the Re-scope of Huntington and Talbert Channels Effort has certainly brought to everyone's
attention the need for safe walking and bicycle trails in southeast Huntington Beach. (01:38:32)
Caller Vickie Talley, Executive Director, Manufactured Housing Educational Trust (MHET), was invited to
speak and shared her opinions regarding the situations shared by Skandia Mobile Home Park residents.
She suggested they apply for rent subsidy assistance, and gather signatures for the City Charter
amendment they want to see on the November 2022 ballot. (01:41:08)
Caller Ada Hand, a resident of Del Mar Estates Mobile Home Park, was invited to speak and stated
support for the concerns of the Skandia Mobile Home Park residents. Ms. Hand asked that the Mobile
Home Advisory Board support the efforts of mobile home owners and ensure this topic is placed on the
February 15, 2022, City Council Agenda. (01:44:01)
Caller Julie Poly, Western Manufactured Housing Communities Association, was invited to speak and
shared her perspective that the rent increases proposed by IPG for Skandia Mobile Home Park only
cover the new property tax basis for the new property owner, and is not profit for IPG. She stated that
about 60% of the property tax increase goes to the local school district, and suggested there are
solutions to consider, such as implementing a mobile home rental assistance program, rather than
implementing any type of rent control. (01:46:15)
Caller Frances Delaney-Barron, a resident of Sunset Beach for 31 years, was invited to speak and stated
her support for Administrative Items No. 18 regarding Orange County Power Authority (OCPA) 100%
Renewable Choice as the default energy product offering for residential and commercial customers in
Huntington Beach. (01:49:05)
Caller Chris Houser, owner of Rancho del Rey Mobile Home Estates and Mobile Home Advisory Board
Member, was called to speak and stated that approximately three percent of their mobile home owners
utilize the support of the Rental Assistance and Orange County Housing Assistance Programs. Mr.
Houser further stated he is opposed to singling out mobile home parks for any type of rent control.
(01:50:45)
38
Caller Gary Wong, a veteran and resident of Huntington Beach for 38 years, was invited to speak and
stated his support for any project that will provide an independent source of water, in addition to the
Colorado River and Northern California sources. From his perspective, the question is whether the
approved solution will provide an independent source of water without disturbing the environmental
quality of life for future generations. (01:53:04)
Caller Kathleen McGowan, Huntington Beach Environmental and Sustainability Board Member, and an
Orange County Power Authority (OCPA) Community Advisory Committee, City of Huntington Beach
Representative, and Environmental Engineer speaking on her own behalf, was invited to speak and
stated her support for Administrative Items No. 18 regarding OCPA 100% Renewable Choice as the
default energy product offering for residential and commercial customers in Huntington Beach. (01:55:22)
Caller Valerie Avila, IPG Regional Manager, Skandia Mobile Home Park, was invited to speak and stated
that all Skandia homeowners were notified of the availability of the Manufactured Housing Educational
Trust (MHET) Rental Assistance Program, and may qualify for a ten-percent discount that never has to
be paid back. (01:56:46)
Caller Joclyn Rabbitt-Sire, a 23-year resident of Huntington Beach, was invited to speak and stated her
support for Administrative Items No. 18 regarding Orange County Power Authority 100% Renewable
Choice as the default energy product offering for residential and commercial customers in Huntington
Beach. (01:58:06)
Caller Marilyn Palomino, a resident of Huntington for 35 years, was invited to speak and stated her
support for Administrative Items No. 18 regarding Orange County Power Authority 100% Renewable
Choice as the default energy product offering for residential and commercial customers in Huntington
Beach. (02:00:25)
Caller Julie Rodriguez, Property Management President for Investment Property Group (IPG), owner of
Skandia Mobile Home Park, was called to speak and described examples of investments made to the
Park to increase property values, and increased costs for taxes and maintenance to justify the rental
increases. (02:01:53)
Caller Richard Hughes, Owner, Rancho Del Rey Mobile Home Estates, was invited to speak and shared
his opinions related to the increased costs described by the Skandia Mobile Park residents, and stated
all costs are going up because of inflation. He further described the rental assistance programs available
to mobile park homeowners, and park management efforts to support their homeowners. (02:04:09)
Caller Erin Lusgignan, a resident for 20+ years whose home backs to Talbert Channel next to Sowers
School, was invited to speak and stated her opposition to having Channel service roads turned into
walking trails as it will remove all privacy to adjacent residents' back yards, and create unsafe street
crossings at multiple locations. (02:06:36)
Caller Ayn Craciun was invited to speak and stated her support for Administrative Items No. 18 regarding
Orange County Power Authority 100% Renewable Choice as the default energy product offering for
residential and commercial customers in Huntington Beach. (02:09:05)
Caller Alexis Hernandez, OC Equity Organizer and Policy Advocate for nonprofit Climate Action
Campaign, was invited to speak and stated her support for Administrative Items No. 18 regarding Orange
39
County Power Authority 100% Renewable Choice as the default energy product offering for residential
and commercial customers in Huntington Beach. (02:11:26)
COUNCIL COMMITTEE — APPOINTMENTS — LIAISON REPORTS, AB 1234 REPORTING, AND
OPENNESS IN NEGOTIATIONS DISCLOSURES
Councilmember Carr reported attending meetings of the Mobile Home Advisory Board, and announced
openings for this Board, the Communications Committee, and Southeast Area Committee.
Councilmember Carr asked that staff upload the presentations from the Southeast Area Committee
meeting to the City's website as they contained important information related to City Updates, AES,
ASCON and Poseidon.
Councilmember Moser reported attending meetings of the Homeless Task Force; West Orange County
Water Board; HB Central Park Collaborative; and Communications Committee.
Councilmember Bolton reported attending meetings of the Human Relations Committee, which will
celebrate 25 Years of Service on April 7th at City Hall; Southeast Huntington Beach Community; Jet
Noise Commission; and Santa Ana River Flood Protection Agency.
Mayor Pro Tem Posey reported attending meetings of the Orange County Mosquito and Vector Control
District Board; and Orange County Council of Governments (OCCOG).
Councilmember Kalmick reported attending meetings of the West Orange County Water Board;
Cannabis Ad Hoc Committee; Design, Build, Finance, Operate and Maintain (DBFOM) Ad Hoc
Committee; Mobile Home Advisory Board; and Communications Committee.
Mayor Delgleize invited Police Chief Para to the podium for a brief report on the recent Fish with the
Force event at Carr Park for local elementary students.
Mayor Delgleize reported attending the Salvation Army shelter groundbreaking in Anaheim.
CITY MANAGER’S REPORT
8. 22-076 Re-scope of Huntington and Talbert Channels Effort
Interim City Manager Sean Joyce explained that the title for this report, which describes how the former
“Trails to the Sea” mobility concept is changing, was chosen with the intent of ensuring interested
residents would not miss the change of focus. Interim City Manager Joyce introduced Public Works
Director Sean Crumby who presented a PowerPoint communication titled Huntington and Talbert
Channels Update with slides entitled: Overview, Survey, and Next Steps.
Mayor Pro Tem Posey thanked Director Crumby and staff for remaining flexible and confirming the
remaining budgeted funds will still be focused on mobility concerns.
CITY TREASURER’S REPORT
9. 22-036 Received and Filed the City Treasurer’s December 2021 Quarterly Investment
Summary Report
40
City Treasurer Alisa Backstrom presented a PowerPoint communication titled Quarterly Investment
Report for the Quarter Ended: December 31, 2021 with slides entitled: Investment Portfolio – Summary,
Investment Portfolio – Investments by Type, Investment Portfolio – Quarterly Activity (Oct-Dec),
Investment Portfolio – Earnings, Interest Rates – US Treasury Rates, Selected Investment Policy
Compliance Requirements, and Summary.
A motion was made by Carr, second Posey to receive and file the City Treasurer's Quarterly Investment
Report for December 2021, pursuant to Section 17.0 of the Investment Policy of the City of Huntington
Beach.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
CONSENT CALENDAR
10. 22-033 Approved and Adopted Minutes
A motion was made by Carr, second Posey to approve and adopt the City Council/Public Financing
Authority regular meeting minutes dated January 18, 2022, as written and on file in the office of the City
Clerk.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
11. 22-031 Received and filed the 2022 annual update of the Council Manual digitally compiled
to incorporate policy information previously adopted by Resolution No. 2019-09
A motion was made by Carr, second Posey to receive and file the updated Council Manual 2022.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
12. 22-064 Adopted Resolution No. 2022-03 approving the 2022 Investment Policy
A motion was made by Carr, second Posey to adopt Resolution No. 2022-03, "A Resolution of the City
Council of the City of Huntington Beach Approving the Statement of Investment Policy 2022."
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
41
13. 22-075 Approved positions on legislation pending before the State Legislature, as
recommended by the Intergovernmental Relations Committee (IRC)
A motion was made by Carr, second Posey to approve a letter of support for Assembly Bill 1595 (Quirk-
Silva & Choi): Veterans Cemetery.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
14. 22-001 Approved and authorized execution of a Professional Service Agreement for the
preparation of an Americans with Disabilities Act (ADA) Self-Evaluation and
Transition Plan with Disability Access Consultants (DAC)
A motion was made by Carr, second Posey to approve and authorize the Mayor and City Clerk to
execute "Professional Services Contract Between the City of Huntington Beach and Disability Access
Consultants, LLC for ADA Self-Evaluation and Transition Plan."
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
15. 22-069 WITHDRAWN Approve and authorize execution of a Professional Services Contract
with K Street Consulting, LLC for Legislative Advocacy and Grant Management
Services
16. 22-061 Approved and authorized execution of Amendment No. 5 to Agreement with Biggs
Cardosa Associates, Inc. (BCA) for bridge design services in the amount of
$301,857.00, for a total contract amount not to exceed $3,115,654.00 and extending
the contract term 3 years
A motion was made by Carr, second Posey to approve and authorize the Mayor and City Clerk to
execute "Amendment No. 5 to Agreement Between the City of Huntington Beach and Biggs Cardosa
Associates, Inc. for Bridge Design Services."
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
17. 22-062 Approved the purchase of 23 replacement vehicles from National Auto Fleet Group
using lease financing and authorized the City Manager to enter into all documents
necessary to lease finance the purchase of the vehicles
A motion was made by Carr, second Posey to approve the purchase of 23 replacement vehicles utilizing
5-year lease financing at an interest rate not to exceed 2.375 percent and authorize the City Manager to
42
enter into all documents necessary to lease finance the purchase of the vehicles and take all
administrative and budgetary actions necessary to complete the purchase and financing.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
ADMINISTRATIVE ITEMS
18. 22-074 Selected Orange County Power Authority (OCPA) Alternative Default Energy
Product Offerings for Residential/Commercial customers and City facilities
Interim City Manager Sean Joyce presented a PowerPoint communication titled Community Choice
Aggregators (CCA) Orange County Power Authority Rate Selection with slides entitled: What is a
Community Choice Aggregator (CCA)?; CCA Background in HB; Alternative Default Energy Product
Offerings; Orange County Power Authority Member Agencies; Basic Choice; Smart Choice; 100%
Renewable; Policy Decisions, and Questions?
Mayor Pro Tem Posey, as an Orange County Power Authority (OCPA) Board Member, elaborated on the
69% Renewable Choice and explained that option is an average of the Basic Tier at 38.5% and 100% for
the Upper Tier, and described OCPA Board discussion options for setting each Tier rate. He also
reviewed other steps the City has taken to be energy conservative including the purchase and
conversion of street light poles, City Hall parking lot solar panels, battery back-up, and commitment to
acquiring hybrid City vehicles.
Mayor Pro Tem Posey stated his opinion that there are funds in the budget, the City has exhibited good
stewardship, and the Return on Investment (ROI) for the switch to LED street lights will pencil out,
resulting in the City's greenhouse gas reductions playing a part in complying with SB 32 and other
mandates from Sacramento.
Councilmember Kalmick described his perspective that by joining the OCPA, people will have four
options for energy source, including local control for setting rates, and a viable way to meet the City's
greenhouse gas emission plans as described in the General Plan. He also stated his opinion that this
effort will make a measurable impact on the effort to forestall climate change and sea level rise.
Councilmember Kalmick explained his perspective that even though this program will not make any
immediate changes in the use of power generated locally, it is a first step to creating revenue that can be
used for local jobs and local energy projects in the future. He further stated his support for the 100%
Renewable Choice as the default product offering.
Mayor Pro Tem Posey explained that commercial users will have access to the OCPA options beginning
in April, and residential customers will have access in the Fall. Option notices will be sent out 60 days
before launch, and customers will have up to 60 days after launch to select one of four options:
Southern California Edison, Community Choice Aggregate (CCA) at 38.5%, 67% or 100% renewable
energy. In addition, anyone with solar panels will get 10% more than investor-owned utilities currently
offer if they select a CCA option.
43
Councilmember Carr shared information about the California Energy Rates Program that can offer a 30 –
35% discount on electrical rates for qualified consumers. Details can be found on the Southern
California Edison website. There is also a Family Electric Rate Assistance Program available to
customers who may be just above the low-income qualification that provides an 18% discount. The
discounts for each Program are available regardless of energy supplier.
Councilmember Carr stated the intention for energy choice has always been about allowing choices,
providing local control, and having profits returned to the local community rather than to an investor-
owned utility. She further stated her support for the 100% Renewable Choice as the default product
offering.
Councilmember Peterson shared his opinion that true choice is not forcing everyone into one program
while providing an opt-out option. He further stated there is a new power plant in Huntington Beach, but
there are no solar, wind farms, or hydro dams locally, nor would it be possible to build a solar plant or
wind farm in Huntington Beach that would be big enough to supply the power needs of Huntington
Beach. In reality, offering a 100% renewable option, in his opinion is only subsidizing green energy
being created somewhere else.
Councilmember Peterson stated his support for selecting the Basic Tier of 38.5% Renewable Choice as
the default product offering and any customer then can choose to switch to the 100% Renewable Choice
if it makes sense to them. He added that he believes there are better uses for the City's $200,000/year,
the amount the 100% Renewable Choice is projected to cost.
Councilmember Carr clarified for the record that no one has ever said that a 100% Renewable Choice
means that 100% of the power is renewable. She further clarified that voluntarily opting in to alternatives
would be preferable, but that is not allowed by the California Public Utilities Commission (CPUC), who
sets the rules for program offerings.
Councilmember Bolton and Mayor Pro Tem Posey discussed an expected nominal fee that will only
apply to customers changing their option after the 60-day deadline. Mayor Pro Tem Posey re-iterated
everyone will receive Option Notices 60 and 30 days before the switchover, as well as 30 and 60 days
after the switch has been made.
Councilmember Bolton stated her support for the City using all avenues possible to educate and assist
residents in option decisions, in addition to the planned mailings. She also encouraged people to look at
the map prepared by the California Environmental Protection Agency, Office of Environmental Health
Hazard Assessment to better understand the pollution burden that exists in some areas of Huntington
Beach.
Councilmember Bolton further stated her support for the OCPA.
Councilmember Moser stated her support for implementing a proven model and making a decision that
will improve life for future generations. She added her opinion that this decision is one of many that will
need to be made regarding future sustainability, and suggested it may be time for an efficiency audit to
evaluate the success of the past decisions such as street lights, solar panels, and battery backup, as well
as look for other options for reducing energy and costs.
Councilmember Moser stated her support for the 100% Renewable Choice as the default offering, and
for staff making extra effort to assist consumers with their choices. She also shared her expectation that
44
OCPA will be transparent in their operations, and will provide regular outreach communication in
collaboration with the City.
Mayor Pro Tem Posey responded to Councilmember Moser's comments about OCPA communication,
by stating the OCPA does have a Communications Committee, for which he is Chair, and has a couple
of press conferences coming up soon with exciting news to share.
Mayor Delgleize shared her perspective on the City's long-term focus on ways to increase energy
efficiency. She stated her support for 100% Renewable Choice as truly embracing the highest available
standard, and encouraged taking steps to ensure staff is available during normal business hours to
answer questions and assist customers with their rate choice decisions.
Interim City Manager Joyce confirmed there is a budget for OCPA outreach efforts, as well as a
commitment to attend civic events. He also affirmed the City could make facilities and staff available as
well.
Mr. Probolsky, Orange County Power Authority (OCPA) CEO, joined the meeting via Zoom, and
confirmed that OCPA has the budget and bodies to assist Huntington Beach in whatever ways requested
in implementing electric power choices.
Councilmember Carr stated her support for multi-channel outreach opportunities, and noted that
Huntington Beach is the second biggest City in the OCPA and may require more resources than smaller
cities would for adequate community outreach.
A motion was made by Kalmick, second Carr to select 100% Renewable Choice as the default energy
product offering for Residential, Commercial and City municipal energy accounts in Huntington Beach.
The motion carried by the following vote:
AYES: Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: Peterson
COUNCILMEMBER ITEMS
19. 22-079 Approved Item Submitted by Mayor Delgleize, Councilmember Moser and
Councilmember Bolton — Consider support of a Blood Drive in collaboration with
the UCI Health Bloodmobile, and direct staff to coordinate with UCI Health to host
the event at a City Facility
Councilmember Moser introduced this item by stating this effort is in response to the National Blood
Crisis, due to the COVID-19 pandemic, as announced by the American Red Cross in January 2022. She
noted that the Huntington Beach Fire Association, partnering with the Red Cross, Nuvision Credit Union
and Refuge Calvary Chapel, managed three successful blood drives during the pandemic.
Councilmember Moser added that the intent of this item is to not only approve an upcoming blood drive
in collaboration with UCI Health, but also to direct staff to regularly engage in continued blood drive
opportunities. She also noted that the Huntington Beach Fire Association is working on another blood
drive scheduled for May.
45
A motion was made by Moser, second Delgleize to direct staff to collaborate with UCI Health to host a
blood drive at a City of Huntington Beach facility tentatively on March 5, 2022; and, direct staff to
highlight and promote resources for additional opportunities for the community to participate in blood
drives.
The motion carried by the following vote:
AYES: Peterson, Bolton, Posey, Delgleize, Carr, Moser, and Kalmick (Zoom)
NOES: None
COUNCILMEMBER COMMENTS (Not Agendized)
Mayor Pro Tem Posey complimented Police Chief Parra for his daily City Council updates on activities by
officers on proactive patrol, and thanked him and all Huntington Beach Police Officers for their
outstanding work.
Councilmember Carr wished everyone Happy Lunar New Year, Year of the Tiger. She gave a shout-out
to the Huntington Beach High School Model United Nations Team for earning the Most Outstanding
Delegation recognition at the recent international competition at Harvard University, and acknowledged
her daughter, who received Best Delegate recognition.
Councilmember Carr reported participating in the 14th Anniversary celebration of Sweet Elle Cafe, and
attending the 12th Annual KinderVision Celebrity Benefit Golf Tournament.
Councilmember Moser announced that EveryoneCounts.org is live and encouraged those interested in
volunteering for the Orange County Point-In-Time Homeless Count, February 22 – 24, 2022, to go to that
website for details and to sign up. She also reported attending the grand Re-Opening and 14th
Anniversary Celebration for Sweet Elle Cafe; grand openings for Plants by Yours Truly & BYO, as well as
Plants and Refills, two local women-owned businesses; and described her experience of recently
participating in a Be Well OC ride-along.
ADJOURNMENT — 9:39 PM to the Strategic Planning Workshop scheduled for 9:00 AM, Friday,
February 4, 2022 at Huntington Beach Central Library, Rooms C & D, 7111 Talbert Avenue, Huntington
Beach, California.
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday, February 15, 2022, at 4:00 PM in the Civic Center Council Chambers, 2000 Main Street,
Huntington Beach, California.
INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND
STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT
http://www.huntingtonbeachca.gov
46
________________________________________
City Clerk and ex-officio Clerk of the City Council
of the City of Huntington Beach and Secretary of
the Public Financing Authority of the City of
Huntington Beach, California
ATTEST:
______________________________________
City Clerk-Secretary
______________________________________
Mayor-Chair
47
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:21-1018 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Robin Estanislau, CMC, City Clerk
PREPARED BY:Robin Estanislau, CMC, City Clerk
Subject:
Reaffirm adoption of Resolution No. 2021-62 finding a proclaimed state of emergency
continues to impact the ability to meet safely in person, and allows meetings of the City
Council and all City boards, commissions and committees to be conducted remotely as
needed in compliance with new Brown Act provisions identified in Assembly Bill 361
Statement of Issue:
On September 16, 2021, Governor Newsom approved Assembly Bill 361 (Rivas) that amends the
Ralph M. Brown Act to include a new authorization that allows all local agencies to host remote
meetings and remote public comments. The authorization, which largely extends the provisions of
the Governor’s Executive Order N-29-20 (approved March 17, 2020) and Executive Order N-35-20
(approved March 21, 2020), is in effect until January 1, 2024. To comply with the new provisions
identified in AB 361, the City Council adopted Resolution No. 2021-62 finding a proclaimed state of
emergency continues to impact the ability to meet safely in person, and allows meetings of the City
Council and all City boards, commissions and committees to be conducted remotely as needed due
to health and safety concerns for the public.
Financial Impact:
Not applicable.
Recommended Action:
Reaffirm Resolution No. 2021-62, “A Resolution of the City Council of the City of Huntington Beach,
California, finding that the proclaimed state of emergency continues to impact the ability to meet
safely in person.”
Alternative Action(s):
Do not reaffirm Resolution No. 2021-62 and direct staff accordingly.
Analysis:
A provision of Assembly Bill 361 requires local agencies to verify every 30 days that the exemption
from traditional teleconference requirements is still necessary. Specifically, the legislative body must
City of Huntington Beach Printed on 2/9/2022Page 1 of 2
powered by Legistar™48
File #:21-1018 MEETING DATE:2/15/2022
make findings no later than 30 days after the first teleconference and every 30 days thereafter that:
·The legislative body has reconsidered the state of emergency circumstances; and
·Either i) the state of emergency continues to directly impact the ability of the members to meet
safely in person, or ii) state or local officials continue to impose or recommend measures to
promote social distancing.
If necessary, the City will continue to make appropriate findings at least every 30 days to ensure
compliance with this verification requirement of Assembly Bill 361 until its sunset date of January 1,
2024.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2021-62
2. Assembly Bill 361
City of Huntington Beach Printed on 2/9/2022Page 2 of 2
powered by Legistar™49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-047 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Award and authorize the execution of a construction contract with Orion Construction
Corporation, in the amount of $3,486,243 for the McFadden Sewer Lift Station Replacement
Project, CC-1610; approve appropriation of funds and declare Arnaz Engineering Contractors,
Inc. as non-responsive
Statement of Issue:
On December 15, 2021, bids were received electronically for the McFadden Sewer Lift Station
Replacement Project. City Council action is requested to award the construction contract to Orion
Construction Corporation, the lowest responsive and responsible bidder.
Financial Impact:
Total funds for the project, including contingency and supplemental expenses, are estimated at
$4,532,200. Funds for the project are available in Sewer Development Fee Fund account
21089018.82600 ($1,428,898) and in Sewer Service Fund account 51189016.82600 ($1,700,000).
Staff requests a $1,403,302 appropriation from the Sewer Service Fund (511).
Recommended Action:
A) Appropriate $1,403,302 from the Sewer Service Fund (511) to Account 51189016.82600; and,
B) Declare the first apparent lowest bid from Arnaz Engineering Contractors, Inc. as non-responsive;
and,
C) Accept the second lowest responsive and responsible bid submitted by Orion Construction
Corporation, in the amount of $3,486,243; and,
D) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the
City Attorney.
Alternative Action(s):
Reject all bids and provide staff with an alternative direction.
City of Huntington Beach Printed on 2/9/2022Page 1 of 3
powered by Legistar™67
File #:22-047 MEETING DATE:2/15/2022
Analysis:
The existing McFadden Sewer Lift Station,located at the southeast corner of McFadden Avenue and
Dawson Lane in Greer Park,was constructed in 1972 and needs replacement due to its age and
insufficient wet well capacity. The existing concrete box structure is also experiencing structural
failures due to immersion in a high chloride groundwater environment. The issue concerning
insufficient wet well capacity is problematic as the wet well lacks holding time, which limits
maintenance staff’s ability to respond to issues. Also, the undersized wet well causes the pumps to
cycle excessively,which reduces pump life and overall station’s reliability. A new duplex submersible
pump lift station and a separate valve vault with a magnetic flow meter will be constructed per current
state-of-the-art equipment and material that will improve the sewer system’s reliability and staff’s
response time for any emergency situation.
This project will also remove approximately 1,300 lineal feet of 4-inch sewer force main pipeline
located along McFadden Avenue starting at Dawson Lane and will construct an 8-inch gravity flow
pipeline system. This project will also include an emergency natural gas generator so the sewer lift
station facility will continue to function normally during an electrical power outage, consequently
minimizing sewage spills.
The bids were received electronically on December 15, 2021. The verified bid amounts are listed
below:
Bidding Contractor Bid Amount Submitted
Arnaz Engineering Contractors, Inc.$2,974,905
Orion Construction Corporation $3,486,243
Vido Artukovich & Son Inc./Vidmar Inc. A JV $3,786,090
Mladen Buntich Construction $4,130,855
Mehta Mechanical Company, Inc.$4,192,030
Caliagua, Inc.$4,633,912
Zusser Company, Inc.$4,695,200
Mike Prlich and Sons, Inc.$4,882,868
The apparent lowest bid was submitted by Arnaz Engineering Contractor Inc. After a thorough review
of the bid and under direction of the City Attorney’s Office, the City determined Arnaz Engineering
Contractors to be non-responsive for not providing construction experience similar to the work
required per the project specifications. Therefore,staff is recommending award of the construction
contract to the second apparent lowest bidder Orion Construction Corporation. Staff checked their
references and recommends award of a construction contract to Orion Construction Corporation in
the amount of $3,486,243. The total estimated construction cost is $4,532,200,which includes the
construction contract amount, a 15% contingency, and supplemental expenses, including contracted
construction project management, and materials testing.
Environmental Status:
The project is categorically exempt pursuant to Section 15304 of California Environmental Quality
Act.
City of Huntington Beach Printed on 2/9/2022Page 2 of 3
powered by Legistar™68
File #:22-047 MEETING DATE:2/15/2022
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Location Map
City of Huntington Beach Printed on 2/9/2022Page 3 of 3
powered by Legistar™69
MCFADDEN SEWER LIFT STATION CC-1610
70
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-051 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Accept the lowest responsive and responsible bid, approve appropriation of funds and
authorize execution of a construction contract with RJ Noble Company in the amount of
$2,658,630 for the Zone 5 Overlay Project, CC-1638
Statement of Issue:
On January 20, 2022, bids were publically opened for the Zone 5 Overlay project. City Council action
is requested to award the construction contract to RJ Noble Company, the lowest responsive and
responsible bidder.
Financial Impact:
The total cost of the project is $3,034,500. Funds for this project are available in the current fiscal
year budget in the Gas Tax Account 20790059.82300 ($1,630,000), Water Fund Account
50685201.82100 ($150,000) and Sewer Fund Account 51185101.82600 ($100,000). Staff is
requesting an appropriation from the undesignated Measure M fund balance of $1,154,500.
Recommended Action:
A) Accept the lowest responsive and responsible bid submitted by RJ Noble Company in the amount
of $2,658,630; and,
B) Appropriate $1,154,500 from the undesignated Measure M fund balance to account
21390002.82300; and,
C) Authorize the Mayor and City Clerk to execute a construction contract in a form approved by the
City Attorney.
Alternative Action(s):
Reject all bids, or provide staff with an alternative action.
City of Huntington Beach Printed on 2/9/2022Page 1 of 2
powered by Legistar™71
File #:22-051 MEETING DATE:2/15/2022
Analysis:
This project will rehabilitate the pavement for approximately 80 of the worst residential street
segments in Maintenance Zone 5. Maintenance Zone 5 is bounded by Yorktown Avenue to the north,
Beach Boulevard to the east, and Pacific Coast Highway to the south and west. Work will include
limited localized pavement repairs, crack sealing, cold milling, striping, and an asphalt overlay.
Bids were publicly opened on January 20, 2022, with the following results:
BIDDER'S NAME BID AMOUNT
RJ Noble Company $2,658,630.00
All American Asphalt $2,807,130.00
Hardy & Harper $3,119,000.00
Excel Paving $3,186,150.00
RJ Noble Company has provided acceptable experience on similar City projects in the past.
Therefore, staff recommends awarding a contract to RJ Noble Company in the amount of
$2,658,630. The total cost of the project is $3,034,500. This total includes the construction contract
of $2,658,630 plus ten-percent (10%) construction contingency. In addition, supplemental expenses
for labor compliance monitoring and project inspection are needed for this project.
Environmental Status:
The project is categorically exempt pursuant to Class 1, Section 15301(c) of the California
Environmental Quality Act.
Public Works Commission Action:
The Public Works Commission reviewed and approved CC-1638 on November 17, 2021, with a vote
of 5-0-1 (Commissioner Shepard absent).
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Vicinity Map
City of Huntington Beach Printed on 2/9/2022Page 2 of 2
powered by Legistar™72
73
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-078 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
PREPARED BY:Sean Crumby, Director of Public Works
Subject:
Reject all bids for the Storm Water Pump Station Facility Improvements Project CC -1657;
update specifications and rebid the project
Statement of Issue:
On December 2, 2021 bids were opened for the Storm Water Pump Station Facility Improvements
Project CC 1657. It is recommended that all bids be rejected, update the project specifications and
the project be rebid.
Financial Impact:
Funds for the project totaling $575,000 are included in the Fiscal Year 2021-22 approved budget in
Infrastructure Account No. 31440005.82500. The recommended action will preserve funds in the
Account.
Recommended Action:
Reject all bids for the Storm Water Pump Station Facility Improvements Project CC -1657, update
project specifications and the rebid the project.
Alternative Action(s):
Do not reject bids at this time and direct staff on how to proceed.
Analysis:
Following a facility assessment of the fifteen storm water pump stations, the Utilities Division
prioritized the roof replacements of the Adams, Atlanta, Bolsa Chica, Flounder, and Indianapolis
stations. These roofs were last replaced in the 1990s and have reached end of life, with some
having leaks. A modern membrane style roofing system with a 30-year life will be installed at these
stations. Roof hatches and fascia boards will also be replaced as they have deteriorated due to
weather and termite damage.
In addition to the roof work, facility louvers and doors will also be replaced or installed to improve
security and equipment reliability. The (20) existing louvered openings located throughout these five
City of Huntington Beach Printed on 2/9/2022Page 1 of 2
powered by Legistar™74
File #:22-078 MEETING DATE:2/15/2022
stations are wooden, original, and have become a security concern. They will be replaced with steel
louvers. Some of the (7) existing doors have also been damaged from break-ins, or are at end of life,
and will be replaced with heavy gage metal doors.
The Engineer’s Estimate for this project was $575,000. Bids for the Storm Water Pump Station
Facility Improvements Project CC1657 were opened on December 2, 2021, and are listed in
ascending order.
Bidder Submitted Bid Corrected Bid
1 Zara Construction $508,474.05 $508,474.05
2 ERC Roofing $531,040.00 $531,040.00
3 Elegant Construction Inc.$558,750.04 $558,750.04
4 AME Builders Inc $619,506.00 $619,506.00
5 Corner Keystone Construction Corporation $637,773.70 $637,773.70
After the bids were opened the City received a bid protest from the second place bidder claiming that
the apparent low bidder, Zara Construction, had not properly completed the bid bond form and was
not qualified by the equipment supplier as required in the project specifications. After review, the
validity of Zara Construction’s bid bond was not completely clear to the City as the bond was not
signed by Zara, but was in fact signed and validated by the company’s surety. Additionally, the
specifications listed certification from the material supplier as a requirement, but did not clearly state
if this was required prior to submission of bids. Due to the uncertainty on these two issues, it is
recommended by the City’s legal department to reject all bids and rebid the project with clarified
specification requirements on these two items.
Environmental Status:
This project is categorically exempt pursuant to the California Environmental Quality Act, Section
15303.c.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Project Location Map
City of Huntington Beach Printed on 2/9/2022Page 2 of 2
powered by Legistar™75
76
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-087 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
PREPARED BY:Ursula Luna-Reynosa, Director of Community Development
Subject:
Approve for introduction Ordinance No. 4234 approving Zoning Text Amendment (ZTA) No. 21-
006 establishing electric vehicle charging station sign standards
Statement of Issue:
The proposed Zoning Text Amendment (ZTA) would amend Chapter 233 (Signs) of the Huntington
Beach Zoning and Subdivision Ordinance (HBZSO) to regulate signs on electric vehicle charging
stations.On January 11, 2022, the Planning Commission held a public hearing to consider the
proposed ZTA. The Planning Commission and staff recommend approval.
Financial Impact:
Not applicable.
Recommended Action:
PLANNING COMMISSION AND STAFF RECOMMENDATION :
A) Find that Zoning Text Amendment No. 21-006 is categorically exempt pursuant to City Council
Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act (CEQA);
and,
B) Approve Zoning Text Amendment No. 21-006 with findings (Attachment No. 1) by approving for
introduction City Council Ordinance No. 4234, “An Ordinance of the City of Huntington Beach
Amending Chapter 233 of the Huntington Beach Zoning and Subdivision Ordinance Establishing
Electric Vehicle Charging Station Sign Standards (Zoning Text Amendment No. 21-006)” (Attachment
No. 2).
Alternative Action(s):
The City Council may make the following alternative motions:
1. Do not approve Zoning Text Amendment No. 21-006.
City of Huntington Beach Printed on 2/9/2022Page 1 of 3
powered by Legistar™77
File #:22-087 MEETING DATE:2/15/2022
2. Continue Zoning Text Amendment No. 21-006 and direct staff accordingly.
Analysis:
A.PROJECT PROPOSAL:
Applicant: City of Huntington Beach
ZTA No. 21-006 is a request amend Chapter 233 (Signs) of the Huntington Beach Zoning and
Subdivision Ordinance (HBZSO) to regulate signs on electric vehicle charging stations.
B.BACKGROUND:
Electric vehicles and electric vehicle charging stations have become more prevalent in the City in
recent years. Building permit applications for publicly accessible electric vehicle charging stations
are often proposed within parking lots at commercial shopping centers. Most of these charging
stations are provided by independent contractors and provide charging services to the user for a
fee. Some charging stations are operated at no cost to the user, especially when the installation
is funded via grants. In other cases, when the electric charging services are provided for free to
the driver, the independent contractor earns revenue by providing off-site advertising in LED
message boards within the charging unit itself. The LED message boards typically face the public
areas of the shopping center, allow the independent contractor to sell advertising, and
subsequently provide the charging services at no cost.
The advertising associated with these electric vehicle charging stations is in conflict with the
provisions of the zoning code because off-premises signs, including billboards or advertising
structures installed for the purpose of advertising a project, subject or business unrelated to the
premises upon which the sign is located, are currently prohibited.
On the other hand, signs manufactured as a standard, integral part of a mass-produced product
accessory or display structure including vending machines, automated teller machines, and
gasoline pumps are exempt from sign permit requirements. These types of product or display
structure signs are not restricted by content and no fee, permit or application is required.
C.PLANNING COMMISSION MEETING AND RECOMMENDATION:
On January 11, 2022, the Planning Commission held a public hearing on the ZTA. There were no
written public comments received for the public hearing. The Planning Commission had a general
discussion about the proposed standards and whether it was appropriate to regulate the price that
the operator can charge for the service being provided. The Planning Commission recommended
approval of the request to the City Council.
Planning Commission Action on January 11, 2022:
A motion made by Rodriguez, seconded by Scandura, to recommend to the City Council approval
of ZTA No. 21-006 carried by the following vote:
City of Huntington Beach Printed on 2/9/2022Page 2 of 3
powered by Legistar™78
File #:22-087 MEETING DATE:2/15/2022
AYES: Adams, Rodriguez, Acosta-Galvan, Perkins, Mandic, Scandura, Ray
NOES: None
ABSTAIN: None
ABSENT: None
MOTION PASSED
D.STAFF ANALYSIS:
The January 11, 2022, Planning Commission staff report provides a more detailed description and
analysis of the proposed ZTA (Attachment No. 4). In summary, staff and the Planning Commission
recommend approval of the ZTA based on the following reasons:
1. It is consistent with general land use and environmental resources goals and policies of the
General Plan.
2. The revenue derived from advertising allows the electric vehicle charge to be free to
consumers.
Environmental Status:
ZTA No. 21-006 is categorically exempt pursuant to City Council Resolution No. 4501, Class 20,
which supplements the California Environmental Quality Act, because minor amendments to zoning
ordinances that do not change the development standards intensity or density, are exempt.
Strategic Plan Goal:
Economic Development & Housing
Attachment(s):
1. Suggested Findings of Approval of ZTA No. 21-006
2. Ordinance No. 4234
3. ZTA No. 21-006 Legislative Draft and Revised HBZSO Section 233.14
4. January 11, 2022, Planning Commission Staff Report
5. Example Charging Station
6. PowerPoint Presentation
City of Huntington Beach Printed on 2/9/2022Page 3 of 3
powered by Legistar™79
Attachment No. 1.1
ATTACHMENT NO. 1
FINDINGS OF APPROVAL
ZONING TEXT AMENDMENT NO. 21-006
FINDINGS FOR PROJECTS EXEMPT FROM CEQA:
Zoning Text Amendment (ZTA) No. 21-006 is categorically exempt pursuant to City Council
Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act
because minor amendments to ordinances that do not change the development standards
intensity or density, are exempt. ZTA 21-006 amends the signage standards for electric vehicle
charging stations and does not change development intensity or density.
FINDINGS FOR APPROVAL - ZONING TEXT AMENDMENT NO. 21-006:
1. Zoning Text Amendment No. 21-006 to amend Huntington Beach Zoning and Subdivision
Ordinance (HBZSO) Section 233.08 to add signs on electric vehicle charging stations to the
list of Readerboard signs is consistent with general land uses, programs, goals, and policies
of the General Plan as follows:
Land Use Element
Goal LU-11 – Commercial land uses provide goods and services to meet regional and local
needs.
Policy LU-11 (A) – Encourage a variety of commercial uses that cater to local and regional
demand to create an environment that meets the needs and increases the capture of sales
tax revenues.
Environmental Resources and Conservation Element
Goal ERC-13 – Increase both distributed generation and utility renewable energy sources
within municipal and community-wide practices.
Policy ERR-13 (B) – Encourage renewable energy options that are affordable and benefit all
community members.
Circulation Element
Goal CIRC-8 – Planning and infrastructure support electric and alternative fuel vehicles
through power or fueling stations and other means.
As electric vehicle production and ownership expands within the City, charging stations
conveniently located within commercial shopping centers meets the needs of both visitors and
residents alike. The revenue derived from the advertising allows the charge to be minimal or
80
Attachment No. 1.2
free to the electric vehicle owner. This encourages electric vehicle ownership, which helps
reduce carbon emissions and is good for the environment.
2. Zoning Text Amendment No. 21-001 is compatible with the uses authorized in, and the
standards prescribed for, the zoning district for which it is proposed because it does not
propose any new land uses and only minimally revises development standards in the narrow
category of signage.
3. A community need is demonstrated for the chan ge proposed because electric vehicles are
gaining in popularity and the ZTA will allow providers to derive revenue from advertising and
provide the charge at minimal or no cost to the electric vehicle owner.
4. Its adoption will be in conformity with public convenience, general welfare and good zoning
practice because other readerboard type signs are allowed to have off-site advertising. In this
case, the electric charge will be nominal or free to the public because the provider can derive
revenue from the advertising sales.
81
82
83
84
85
86
87
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-024 MEETING DATE:1/11/2022
PLANNING COMMISSION STAFF REPORT
TO:Planning Commission
FROM:Ursula Luna-Reynosa, Director of Community Development
BY:Jane James, Planning Manager
SUBJECT:
ZONING TEXT AMENDMENT NO. 21-006 (ELECTRIC VEHICLE CHARGING STATION SIGNS) -
CONTINUED FROM AUGUST 10, 2021
REQUEST:
To amend Chapter 233, Signs, of the Huntington Beach Zoning and Subdivision
Ordinance to regulate signs on electric vehicle charging stations.
LOCATION:
Citywide
APPLICANT:
City of Huntington Beach
PROPERTY
OWNER:
Various
BUSINESS
OWNER:
Not applicable
STATEMENT OF ISSUE:
1. Does the project satisfy all the findings required for a Zoning Text Amendment?
2. Has the appropriate level of environmental analysis been determined?
RECOMMENDATION:
That the Planning Commission take the following actions:
A) Find that Zoning Text Amendment (ZTA) No. 21-006 is categorically exempt pursuant to City
Council Resolution No. 4501, Class 20, which supplements the California Environmental Quality Act
City of Huntington Beach Printed on 1/7/2022Page 1 of 8
powered by Legistar™88
File #:22-024 MEETING DATE:1/11/2022
(CEQA); and
B) Recommend approval of Zoning Text Amendment No. 21-006 with findings (Attachment No. 1)
by approving draft City Council Ordinance No. 4234 and forward to the City Council for consideration
(Attachment No. 2).
ALTERNATIVE ACTION(S):
A) Do not recommend approval of Zoning Text Amendment No. 21-006 to the City Council; or
B) Continue Zoning Text Amendment No. 21-006 and direct staff accordingly.
PROJECT PROPOSAL:
Background:
Electric vehicles and electric vehicle charging stations have become more prevalent in the City in
recent years. Building permit applications for publicly accessible electric vehicle charging stations
are often proposed within parking lots at commercial shopping centers. Most of these charging
stations are provided by independent contractors and provide charging services to the user for a fee.
Some charging stations are operated at no cost to the user, especially when the installation is funded
via grants. In other cases, when the electric charging services are provided for free to the driver, the
independent contractor earns revenue by providing off-site advertising in LED message boards within
the charging unit itself. The LED message boards typically face the public areas of the shopping
center, allow the independent contractor to sell advertising, and subsequently provide the charging
services at no cost.
The advertising associated with these electric vehicle charging stations is in conflict with the
provisions of the zoning code because off-premises signs, including billboards or advertising
structures installed for the purpose of advertising a project, subject or business unrelated to the
premises upon which the sign is located, are currently prohibited.
On the other hand, signs manufactured as a standard, integral part of a mass-produced product
accessory or display structure including vending machines, automated teller machines, and gasoline
pumps are exempt from sign permit requirements. These types of product or display structure signs
are not restricted by content and no fee, permit or application is required.
On August 10, 2021, staff presented a suggested Zoning Text Amendment to add electric vehicle
charging stations signs to the list of mass-produced product or display structures that are exempt
from sign permit requirements.
Previous Public Hearing:
The Planning Commission held a public hearing to consider the request on August 10, 2021. There
was no one who spoke during the meeting. The Planning Commission raised several concerns with
the proposal to exempt the EV charging stations signs from permit requirements as they determined
that EV charging station signs were not similar to gasoline dispensary signs.
Instead, the Planning Commission expressed a desire to regulate and limit the size, lighting, sound,
location, and number of the off-premise advertising signs. Staff evaluated the Planning
Commission’s comments and is returning with a newly proposed sign ordinance to capture theCity of Huntington Beach Printed on 1/7/2022Page 2 of 8
powered by Legistar™89
File #:22-024 MEETING DATE:1/11/2022
Commission’s comments and is returning with a newly proposed sign ordinance to capture the
Planning Commission’s concerns.
Staff now recommends incorporating EV charging station signs into the already existing zoning code
section for Readerboard Signs, which allow for off-premise advertising on an electronic screen in
certain circumstances.
ISSUES AND ANALYSIS:
General Plan Conformance:
The ZTA is consistent with the goals and policies of the General Plan as follows:
Land Use Element
Goal LU-11 - Commercial land uses provide goods and services to meet regional and local needs.
Policy LU-11 (A)- Encourage a variety of commercial uses that cater to local and regional demand to
create an environment that meets the needs and increases the capture of sales tax revenues.
Environmental Resources and Conservation Element
Goal ERC-13 - Increase both distributed generation and utility renewable energy sources within
municipal and community-wide practices.
Policy ERR-13 (B)- Encourage renewable energy options that are affordable and benefit all
community members.
Circulation Element
Goal CIRC-8 - Planning and infrastructure support electric and alternative fuel vehicles through
power or fueling stations and other means.
As electric vehicle production and ownership expands within the City, charging stations conveniently
located within commercial shopping centers meets the needs of both visitors and residents alike.
The revenue derived from the advertising allows the charge to be free to the electric vehicle owner.
This incentive encourages electric vehicle ownership, which helps reduce carbon emissions and is
good for the environment.
The Planning Commission raised reasonable sign pollution and related aesthetic concerns. Land
use regulations often entail a critical analysis of tradeoffs between different policy objectives. The
proposed modifications to the sign code do enable vehicle charging stations to include a mini-
electronic billboard of sorts and conduct offsite advertising. Cities in general, and the City of
Huntington Beach in particular, have not favored such sign clutter for multiple reasons.
Reduction of greenhouse gases (GHG) has been an issue of statewide concern since 2005 when
then-Governor Arnold Schwarzenegger signed Executive Order (EO) S-3-05, declaring that California
is vulnerable to the impacts of climate change through reductions in the Sierra Nevada snowpack (a
major source of water for the state), reduced air quality, and rising sea levels. EO S-3-05 also sets
City of Huntington Beach Printed on 1/7/2022Page 3 of 8
powered by Legistar™90
File #:22-024 MEETING DATE:1/11/2022
major source of water for the state), reduced air quality, and rising sea levels. EO S-3-05 also sets
the following GHG reduction goals for the state:
• Reduce emissions to 2000 levels by 2010
• Reduce emissions to 1990 levels by 2020
• Reduce emissions to 80% below 1990 levels by 2050
Numerous assembly bills and senate bills aimed at identifying and reducing sources of GHG have
subsequently become effective in California. In particular, vehicle emissions have been identified as
a primary source of greenhouse gases. The figure below, from the recent General Plan update,
illustrates Transportation, defined as on-road vehicle trips that begin and/or end in Huntington Beach,
as the single largest contributor to GHG emissions in the city.
As another example, the California Air Resources Board (CARB), in January 2012, approved the
Advanced Clean Cars program, an emissions-control program for model years 2017 through 2025.
The program combines the control of smog, soot, and GHGs with requirements for greater numbers
of zero-emission vehicles. By 2025, when the rules will be fully implemented, the new automobiles
will emit 34 percent fewer global warming gases and 75 percent fewer smog-forming emissions. The
program also requires car manufacturers to offer for sale an increasing number of zero-emission
vehicles each year, including battery electric, fuel cell, and plug-in hybrid electric vehicles. In
December 2012, CARB adopted regulations allowing car manufacturers to comply with California's
GHG emissions requirements for model years 2017-2025 through compliance with the EPA GHG
requirements for those same model years (CARB 2012).
City of Huntington Beach Printed on 1/7/2022Page 4 of 8
powered by Legistar™91
File #:22-024 MEETING DATE:1/11/2022
With the advent of these and other bills, electric vehicles and the need for charging stations
throughout the City will become more prevalent. Encouraging electric vehicles by making ownership
more affordable will further assist in reduction of GHG. Expansion of the charging station network in
turn can make vehicle ownership more convenient, practical, and affordable. In this particular case,
due to the State’s objectives and other General Plan objectives achieved (see above list) by allowing
these electronic signs for offsite advertising, the tradeoffs are worthy of Planning Commission
consideration.
Zoning Compliance:
The signs associated with electric vehicle charging stations are typically reader board type signs and
include a revolving message/advertising display. They are usually proposed in commercial center
parking lots and the LED signs are visible to users of the property such as e-vehicle owners charging
their vehicle and other visitors and pedestrians at the shopping center (see example in Attachment
No. 4). By including such signs in the list of Readerboard Signs, the electric vehicle charging station
operator can sell advertising and then provide the charge free or with a nominal fee to customers.
ZTA 21-006 includes the following amendments, in bold underlined blue typeface, to HBZSO
Section 233.14 Readerboard Signs-Multiple Users:
233.14 Readerboard Signs-Multiple Users
Off-site electronic readerboard signs may be permitted subject to review by the Design Review Board
and approval of a conditional use permit by the Zoning Administrator.Off-site electronic
readerboards as part of an electric vehicle charging station may be permitted subject to
building permit and compliance with criteria in 233.14 F.Approval of all other electronic
readerboard signs shall be subject to the following criteria A. through E.:
A.Required Findings. Prior to approving a conditional use permit to allow a multiple user
electronic readerboard sign, the Zoning Administrator shall make the following findings:
1. The proposed electronic readerboard sign conforms with the standards and criteria as
set forth in the Huntington Beach Zoning and Subdivision Ordinance;
2. The proposed electronic readerboard sign will not adversely impact traffic circulation in
adjacent right-of-way or create a hazard to vehicle or pedestrian traffic.
B.Multiple User Readerboard Sign Criteria.
1. Multiple user electronic readerboard signs may be located at a site which is not the
location of any of the parties using the sign for advertising.
2. Multiple user electronic readerboard shall be freestanding.
3. The maximum sign area shall be 1,200 square feet.
4. The maximum height of a multiple user readerboard sign shall be 85 feet.
5. The multiple user readerboard shall have cylinders or directional incandescent lamps
and have a shade screen or louver system, a shade screen and a photocell for reducing the
intensity of lighting at night.
C.Lighting Standards.
1. The maximum night time light intensity and illuminance shall conform to the following:
City of Huntington Beach Printed on 1/7/2022Page 5 of 8
powered by Legistar™92
File #:22-024 MEETING DATE:1/11/2022
Maximum Night Time Intensity
Height from Ground (in feet)5 10 20 30 50 70 85
Max. Intensity (x 1,000
lumens)
125 130 145 170 250 370 490
Maximum Night Time Illuminance
Land Use at Receptor Site Residential Commercial Other
Max. Illuminance (foot-
candles)
0.3 2.0 1.0
The maximum night time illuminance shall be measured at the receptor site, at ground level,
by a direct reading, portable light meter. Measurements shall not be made within one hour
after sunset or before sunrise.
2. Illuminance shall be determined by the difference between a reading taken with the
sign on and another reading taken within three minutes with the sign off.
3. An illuminance chart shall be prepared by a licensed engineer and submitted to the
Director for approval prior to installation. Conformance with this section shall be verified by
actual measurements made, as specified herein, after installation. The method of
measurement and results shall be subject to approval of the Director.
D.Location Requirements.
1. A multiple user readerboard shall be located no farther than 200 feet from a freeway.
2. The minimum distance between multiple user readerboards shall be 1,000 feet.
3. The sign shall be a minimum distance of 600 feet from residential properties.
E.Other Standards.
1. No off-site electronic readerboard will be permitted except for multiple users.
2. At least 20% of the message time, or any percentage deemed necessary by the City
for emergency conditions shall be used for public service announcements.
3. Messages in a multiple user sign shall be no faster than one message every four
seconds and the minimum interval between messages shall be at least one second.
4. Light intensity changes (other than between day and night uses) are not permitted.
F. Electronic Vehicle Charging Station Sign (EVCSS) Standards.
1. The EVCSS shall have a maximum of two (2) sides and a maximum of nine (9)
square feet of signage on each side. The maximum height of an EVCSS is five (5)
feet and shall be designed with a solid monument type base and integrated into the
EV charging station.
2. All EVCSS shall be located at the head of each parking stall and oriented toward
the single vehicle user and/or adjacent sidewalk. The EVCSS shall maintain a
minimum 10 feet by 10 feet visibility triangle at the foot of each parking stall. The
City of Huntington Beach Printed on 1/7/2022Page 6 of 8
powered by Legistar™93
File #:22-024 MEETING DATE:1/11/2022
EVCSS shall not encroach into the required parking stall dimensions. If located
within a landscaped area, any required landscaping shall be replaced.
3. Only static or still pictures and images are permitted on the EVCSS; moving
video type images are not permitted.
4. No audio or sound components are permitted on the EVCSS.
5. The EVCSS shall be located a minimum of 150 feet from any residential property
line or residential use.
6. The EVCSS screen shall dim by at least 50% between 8:00 pm and 8:00 am.
7. There shall be a maximum of two (2) EVCSS for every 100 parking stalls on the
property.
8. An EVCSS with Level 1 (approximately 120 volt outlet) and Level 2 Chargers
(approximately 240 volt outlet) shall be provided free of charge to the public
consumer; Level 3 Direct Current Fast Chargers (approximate range in output from 50
kW to 350 kW) may include a fee to the consumer.
9. Each EVCSS shall comply with 233.14 C. Lighting Standards.
10. Each EVCSS shall comply with 233.14 E. Other Standards.
11. Electric vehicle charging stations, which include readerboard signage granted
under this section, shall be in operational working condition at all times and, at a
minimum, available for use during regular business hours. When an electric vehicle
charging station is not operational for 14 consecutive days, it shall be considered to
have been removed from service. If removed from service, the EVCSS shall be
removed from the site and the parking spaces shall be returned to their original
condition within 30 days.
Presently, signs included on EV charging stations are not addressed in the HBZSO and therefore are
prohibited. Establishing the above regulations as part of the readerboard sign section of the code
provides parameters for size, location, height, and frequency of messaging while allowing for off-site
advertising to occur. The proposed revisions to Chapter 233, Signs, are responsive to the Planning
Commission’s comments at the August 10, 2021 public hearing.
Urban Design Guidelines Conformance:
Not applicable
Environmental Status:
ZTA No. 21-006 is categorically exempt pursuant to City Council Resolution No. 4501, Class 20,
which supplements the California Environmental Quality Act, because minor amendments to zoning
ordinances that do not change the development standards intensity or density, are exempt.
Coastal Status:
If approved, this ZTA will require approval of a Local Coastal Program Amendment by the California
Coastal Commission to incorporate the new provisions in the Coastal Zone.
Design Review Board:
No applicable
City of Huntington Beach Printed on 1/7/2022Page 7 of 8
powered by Legistar™94
File #:22-024 MEETING DATE:1/11/2022
Other Departments Concerns and Requirements:
No applicable
Public Notification:
Legal notice was published in the Huntington Beach Wave on December 30, 2021 and notices were
sent to individuals and organizations requesting notification. As of January 5, 2022, no
communications regarding the request have been received.
Application Processing Dates:
DATE OF COMPLETE APPLICATION:MANDATORY PROCESSING DATE(S):
Not applicable Not applicable
SUMMARY:
Staff recommends approval of ZTA No. 21-006 based on the following:
1. It is consistent with general land use and environmental resources goals and policies of the
General Plan.
2. The revenue derived from advertising allows the electric vehicle charge to be free to
consumers.
ATTACHMENTS:
1.ZTA No. 21-006 Suggested Findings for Approval
2. Draft City Council Ordinance No. XXXX
3. ZTA No. 21-006 Legislative Draft and Revised HBZSO Section 233.14
4.Example Charging Station
City of Huntington Beach Printed on 1/7/2022Page 8 of 8
powered by Legistar™95
ZONING TEXT AMENDMENT NO. 21-006
CHARGING STATION EXAMPLES
96
ZONING TEXT AMENDMENT 21-006
Electric Vehicle Charging Station Signs
FEB.15, 2022
97
BACKGROUND
EVs and EV charging stations
more prevalent in recent years
Proposed in commercial centers
by independent contractors
LED message boards with off-site
advertising
Advertising revenue = no cost to
charge
Conflicts with current ZSO
ZTA intended to establish
regulations
98
REQUEST
Add to Readerboard ZSO Section 233.14
Allows off-site advertising similar to other readerboards
Max. 9 sq ft
Max. 5 ft high
Locate towards head of each stall
No audio or video
Min. 150 ft from residential
Max 2 signs for every 100 parking stalls
Level 1 and 2 free; Level 3 super charger may include fee
No faster than 1 message/4 seconds; 1 second pause
between messages
99
ANALYSIS
EV charging stations not in existence when current code considered
EV charging stations with advertising now more common
ZTA establishes parameters for size, location, height, and frequency of
messaging
100
ANALYSIS AND RECOMMENDATION
General Plan Goals and Policies
LU and ERC
Charging stations meet
needs of visitors and residents
Advertising revenue allows
charging at minimal or no
cost
Encourages EV ownership;
reduces tailpipe emissions
and GHG
No public comments received
101
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-107 MEETING DATE:2/15/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO:Honorable Mayor and City Council Members
SUBMITTED BY:Sean Joyce, Interim City Manager
PREPARED BY:Dahle Bulosan, Chief Financial Officer
Subject:
Year-End Audit Results for the FY 2020/21 Annual Comprehensive Financial Report (ACFR)
and FY 2021/22 Mid-Year Budget Adjustments
Statement of Issue:
Fiscal Year F2020/21 Year-End Audit Results
The City received an Unmodified (Clean) Audit Opinion for the City’s Fiscal Year (FY) 2020/21 Annual
Comprehensive Financial Report (ACFR), which is the best audit result available. In addition, the
Government Finance Officers Association awarded their Certificate of Achievement for Excellence in
Financial Reporting to the City for the 35th consecutive year. Included as an attachment is the FY
2020/21 ACFR to receive and file.
Fiscal Year 2021/22 Mid-Year Adjustments
The Finance Department has also performed a mid-year budget review for the fiscal year that began
on July 1, 2021. In interfacing with operating departments, budgetary requests have been assessed
across all City departments, and certain adjustments are being recommended based on available
resources through grants and/or restricted funds.
Financial Impact:
Fiscal Year 2021/22 Mid-Year Adjustments
1. General Fund (100) budget adjustments are requested as follows:
a. Administrative Services Department - funding for increased pre-employment medical
exams, labor and employee relations consulting services, and a performance
evaluation system ($120,000)
b. City Manager - funding for executive recruitments, City Charter review, and Project
Zero/Healing Center ($120,000)
c. Community Development Department - funding for increased plan check services
($150,000); inspection services ($140,000); and sales tax sharing ($500,000) offset
with plan check and inspection permit revenues and sales tax revenues for a net zero
impact.
d. Finance Department - funding for parking citation processing ($100,000) offset with
parking citation revenues for a net zero impact.
e. Fire Department - funding for Fire Strike team reimbursement costs ($1,700,000) offset
City of Huntington Beach Printed on 2/9/2022Page 1 of 7
powered by Legistar™102
File #:22-107 MEETING DATE:2/15/2022
e. Fire Department - funding for Fire Strike team reimbursement costs ($1,700,000) offset
with strike team reimbursement revenues for a net zero impact; Emergency Transport
deployment ($381,284) offset with emergency medical services revenue for a net zero
impact; and funding for physical exams for suppression staff ($47,300)
f. Police Department - funding for temporary retired annuitant employees ($300,000)
g. Public Works Department - funding for increased janitorial and maintenance contracts
($235,000)
h. Non-Departmental - funding for COVID related expenditures disallowed for FEMA
reimbursement ($1,000,000) and Be Well OC (Mind OC) Mobile Crisis Response
Program contract costs ($300,000)
2. The Public Works Department is requesting additional appropriations totaling $583,000,
through the following sources:
a. Residential Park Development Impact Fund 228 ($150,000)
b. Refuse Collection Fund 504 ($195,000) offset with refuse collection revenue for a net
zero impact
c. Energy Efficiency Fund 807 ($238,000)
3. The Non-Departmental Department is requesting appropriations of $2,000,000 and additional
amounts as needed, in the Emergency Operations Center Fund 238 for continued COVID related
expenditures offset with FEMA reimbursement revenue for a net zero impact
4. The Community Development Department is requesting an additional appropriation of $30,000
in the In-Lieu Parking Improvements Fund 308
5. The Community Development Department is requesting approval to amend a professional
services contract with the National Development Council (NDC) and corresponding increase in
Professional Services Authority of $125,100
6. The Non-Departmental Department is requesting approval to amend a professional services
contract with Mind OC for mobile crisis response service and corresponding increase in
Professional Services Authority of $1,500,000
Details related to the proposed adjustments are outlined in the report below. Further, there are
sufficient revenues, cash, and / or fund balances to support the above referenced adjustments.
Recommended Action:
A) Receive and File the FY 2020/21 Annual Comprehensive Financial Report and other auditor
issued reports; and,
B) Approve mid-year budget adjustments to the FY 2021/22 Revised Budget in the funds and by the
amounts contained in Attachment 3; and,
C) Authorize additional Professional Services authority in the Fiscal Year 2021/22 Revised Budget in
the departments and by the amounts contained in Attachment 4; and,
City of Huntington Beach Printed on 2/9/2022Page 2 of 7
powered by Legistar™103
File #:22-107 MEETING DATE:2/15/2022
D) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to Agreement
between the City of Huntington Beach and National Council for Community Development (NDC) for
Technical Assistance Services” (Attachment 5); and,
E) Approve and authorize the Mayor and City Clerk to execute “Amendment No. 1 to Agreement
between the City of Huntington Beach and Mind OC for Pilot Mobile Crisis Response
Program” (Attachment 6).
Alternative Action(s):
Do not approve the recommended action(s) and direct staff accordingly.
Analysis:
Year-End Audit Results
Auditing firm Davis Farr LLP (Auditors) audited the City’s financial statements and internal control for
the FY 2020/21. The City received an Unmodified (Clean) Audit Opinion for the FY 2020/21 Annual
Comprehensive Financial Report (ACFR), which is the highest opinion possible (Attachment 1).
In addition, the Auditors issued the following reports (Attachment 2):
·AU-C 260 Letter: Auditor’s Communications with Those Charged with Governance
·Appropriations Limit Agreed-Upon Procedures
·Air Quality Management District (AQMD) Report
Fiscal Year 2021/22 Mid-Year Adjustments
The FY 2021/22 Budget was adopted by the City Council on June 1, 2021, for the fiscal year
beginning July 1, 2021. The Finance Department has compiled recommended budget adjustments
to cover additional costs and/or provide appropriations necessary to expend funds that have been
received for specific purposes. The City has received revenues or has set-aside prior year fund
balances that will support the requested adjustments in the General Fund. The Other Funds
adjustments will be funded by available revenue or fund balances within each distinct Fund.
GENERAL FUND (FUND 100)
The Administrative Services Department is requesting appropriations for increased pre-employment
physicals, labor and employee relations consulting services, and a performance evaluation system
($120,000).
The City Manager’s Office requests a $120,000 budget increase for professional services to cover
unanticipated contract costs related to 1) executive recruitment efforts for both Police Chief and City
Manager, 2) Charter Review Committee consultant, and 3) Citywide homeless census and planning
costs for the City’s Project Zero/Healing Center. These projects are aligned with the City Council’s
strategic plan.
The City received higher than anticipated requests for development services from multiple large
projects. The Community Development Department is requesting to increase its professional
City of Huntington Beach Printed on 2/9/2022Page 3 of 7
powered by Legistar™104
File #:22-107 MEETING DATE:2/15/2022
services appropriation for plan check services by $150,000 and building inspections by $140,000 to
cover these pass-thru costs, which have been offset by the fee revenue and result in a net neutral
impact to the General Fund.
Auto dealerships have done better than anticipated due to the vehicle shortage and higher sale
prices per vehicle. Fuel costs have also been increasing, driving up sales tax revenues related to
fuel purchases. As a result of higher than projected sales tax revenues in these areas, the portion of
City sales tax sharing expenditures is also higher due to City sales tax sharing agreements with
Pinnacle Petroleum, Jeep and McKenna. The Community Development Department is requesting an
appropriation of $500,000 to cover the additional costs related to these sales tax sharing
agreements.
The Community Development Department is also requesting to amend a professional services
agreement for consulting services with the National Development Council. The agreement will be
increased by $125,100 for a total of $225,000 and a not to exceed $75,000 per contract year for the
remainder of the three-year term. Available funds are budgeted this fiscal year and no budget
appropriation increase is needed.
The Finance Department is requesting an appropriation of $100,000 to cover increased expenditures
for parking citation processing. The City has received increased parking fines and fees, resulting in a
net neutral impact to the General Fund.
The Fire Department participates in the California Fire and Rescue Emergency Mutual Aid System,
and the department has responded to multiple mutual aid requests to assist in major fires over the
past years. The State of California will fully reimburse Huntington Beach for all allowable Strike Team
expenditures and will reimburse an additional 16.78% administrative rate applied to these allowable
expenditures.
The CAL FIRE 2022 Fire Season Outlook states that while wildfires are a natural part of California’s
landscape, the fire season in California and across the West is starting earlier and ending later each
year. The Fire Department has incurred $1,309,351 in Strike Team expenditures for FY 21/22 so far,
which is approximately 18.5% (or $204,351) higher than this time last fiscal year.
Since there is no annual appropriation for this business unit, given that Strike Team costs are
unknown until costs are incurred, the Fire Department is requesting a budget appropriation of
$1,700,000. This FY 21/22 Mid-Year appropriation request is approximately 12.5% (or $189,059)
higher than the actual amount paid by the State of California for last fiscal year.
To meet the operational demands of increased medical calls and extended wait times at overcrowded
hospitals, especially during the current COVID surge, the Fire Department is requesting a budget
appropriation to fund a fifth 24-hour ambulance, third 14-hour day-time ambulance, and extended
hours to the existing day-time ambulances deployed in FY 2021/22. The Fire Department is
requesting to increase the budget appropriation by $381,284 to account for this deployment through
the end of FY 2021/22. Additional emergency medical service revenues are anticipated to offset the
added costs.
The Fire Department's Organizational Manual Policy D-4 states sworn personnel are required to
City of Huntington Beach Printed on 2/9/2022Page 4 of 7
powered by Legistar™105
File #:22-107 MEETING DATE:2/15/2022
undergo a medical examination at least once in any three year period following date of employment.
Currently, the department is able to send 21 safety personnel for physical medical exams. The Fire
Department is requesting to increase the budget appropriation by $47,300, which would allow an
additional 43 personnel to have a physical medical exam by the end of FY 2021/22.
The Police Department is requesting an appropriation of $300,000 for temporary salaries, as the
Department continues to utilize part-time retired annuitant employees to maintain gaps in staffing
resulting from the Separation Incentive Program. For example, pilot police officers hired back as
retired annuitant employees have been working on a near full time basis to ensure proper staffing
levels in the Air Support Division and to train new pilots. Additionally, the Department increased work
hours of the part time homeless task force case managers to assist with the implementation of the Be
Well project.
The Public Works Department is requesting appropriations of $235,000 for contractual maintenance
expenses that increased as a result of new contract bids issued after the FY 2021-22 budget
submission. The additional expenses are due to prevailing wage requirements and general labor
increases; fuel increases; shifting duties from part-time temporary staff to contract services; and
additional scope of work to meet community standards.
Staff is requesting appropriations of $1,000,000 in the Non-Departmental Department to provide
funding for COVID related expenditures that will potentially be denied for FEMA reimbursement. The
City has taken an aggressive approach in charging COVID related costs to the Emergency
Operations Center Fund 238 in order to ensure the City receives the greatest amount of
reimbursement. Examples of disallowed costs include public safety straight time, medical and other
benefit costs, Zoom subscription costs, and increased operating costs for non-essential services
such as community classes and the junior lifeguard program.
Since its successful launch in August 2021,Be Well OC in Huntington Beach, the City’s pilot mobile
crisis response program has become a critical resource to address a variety of non-emergency crisis
situations including but not limited to mental health, addiction, family disputes, and homelessness. Be
Well’s trained crisis counselors have responded to over 730 calls in the past five months, and the
number of service requests continue to increase every month. Due to Be Well’s ability to successfully
assist community members experiencing crises, staff recommends extending this pilot program for an
additional 14 months from April 21, 2022 to June 30, 2023 and increasing the contract by $1.5
million.
Furthermore, for year 1 of the contract ending April 20, 2022, the City planned to use Permanent
Local Housing Allocation funds from the State to cover eligible Be Well expenses including calls for
service related to homelessness (60-65% of total calls). At-home visits were ineligible to be funded by
previously identified federal funding sources. As such, the City requests General Fund budget
appropriation in amount of $300,000 for the first year’s contract.
OTHER FUNDS
Park Development Impact - Residential (Fund 228)
City of Huntington Beach Printed on 2/9/2022Page 5 of 7
powered by Legistar™106
File #:22-107 MEETING DATE:2/15/2022
An additional appropriation of $150,000 is needed in the Park Development Impact - Residential
Fund to backfill a vacant Contract Administrator position. This position is critical to provide continuity
with the large volume of park related projects currently underway.
Emergency Operations Center (Fund 238)
This fund accounts for citywide COVID related expenditures reimbursable by FEMA. An additional
appropriation of $2,000,000 is requested to continue charging eligible COVID related expenditures
which will be submitted to FEMA for reimbursement.
Refuse Collection Service (Fund 504)
The residential curbside collection rate increased by $0.81 effective July 1, 2021, based on the
formula adopted in Resolution 2021-05, and is estimated to provide an additional $464,000 in
revenues. Part of this increase was included in the FY 2021/22 Adopted Budget. However, due to
higher than anticipated inflation and increased fuel costs, the Public Works Department is requesting
an expenditure appropriation of $195,000 to fund the additional pass-thru costs associated with the
Refuse Collection and Disposal Services contract. Based on current revenue collection amounts,
these adjustments will have a net neutral impact.
In-Lieu Parking Improvements (Fund 308)
An appropriation of $30,000 is needed for a Parking Structure Audit and Operational Assessment of
the 5th and PCH parking structure for review of the operating revenues and expenses and Operating
Agreement. There is sufficient fund balance in this fund to cover the appropriation.
Energy Efficiency (Fund 807)
The Public Works Department is requesting an appropriation of $238,000 in the Energy Efficiency
Fund. An appropriation of $18,000 is needed for ongoing payments related to the Civic Center
storage system and software, which provides battery storage and energy management for the solar
panel system. Additionally, the City has applied for funding via the Southern California Edison (SCE)
Charge Ready 2 (CR2) grant program to provide Electric Vehicle (EV) charging infrastructure for the
city's EV fleet at the Police Department, Civic Center, Utilities Yard and Corporation Yard. In the CR2
program, SCE provides all of the necessary labor and material to install underground infrastructure
for EV charging, from SCE vault to City stub out. The City is responsible for furnishing and installing
the charging port hardware to complete each station, for a cost of $220,000. This request will fund 25
dual port charging stations - 50 total charging ports.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Community Engagement
Homelessness Response
Economic Development & Housing
Infrastructure and Parks
COVID-19 Response
City of Huntington Beach Printed on 2/9/2022Page 6 of 7
powered by Legistar™107
File #:22-107 MEETING DATE:2/15/2022
Attachment(s):
1. FY 2020/21 Annual Comprehensive Financial Report (ACFR)
2. Other Auditor Issued Reports
3. Fiscal Year 2021/22 Recommended Mid-Year Adjustments
4. Fiscal Year 2021/22 Recommended Mid-Year Professional Services Authority
5. Amendment No. 2 to Agreement between the City of Huntington Beach and National Council
for Community Development (NDC) for Technical Assistance Services
6. Amendment No. 1 to Agreement between the City of Huntington Beach and Mind OC for Pilot
Mobile Crisis Response Program
City of Huntington Beach Printed on 2/9/2022Page 7 of 7
powered by Legistar™108
CITY OF
HUNTINGTON BEACH
For The Fiscal
Year Ended
June 30, 2021
California
Annual Comprehensive
Financial Report
109
CITY OF HUNTINGTON BEACH, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2021
Prepared by the Finance Department
110
THIS PAGE INTENTIONALLY LEFT BLANK
111
INTRODUCTORY SECTION
112
THIS PAGE INTENTIONALLY LEFT BLANK
113
i
City of Huntington Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents ........................................................................................................................................... i-ii
Letter of Transmittal ....................................................................................................................................... iii-xi
City Officials ................................................................................................................................................... xii
Organizational Chart ...................................................................................................................................... xiii
Certificate of Achievement in Excellence in Financial Reporting .................................................................. xiv
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................................................ 1-3
Management’s Discussion and Analysis (Required Supplementary Information) ........................................ 4-21
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 25
Statement of Activities .......................................................................................................................... 26
Fund Financial Statements:
Balance Sheet – Governmental Funds ................................................................................................ 27
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ......... 28
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ...... 29
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities ......................................................................... 30
Statement of Net Position – Proprietary Funds .................................................................................... 31
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds............. 32
Statement of Cash Flows – Proprietary Funds..................................................................................... 33
Statement of Fiduciary Fund Net Position – Fiduciary Funds .............................................................. 34
Statement of Changes in Fiduciary Fund Net Position – Fiduciary Funds .......................................... 34
Notes to Financial Statements ................................................................................................................. 36-123
Required Supplemental Information:
Notes to Required Supplementary Information .................................................................................... 126
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget
And Actual – General Fund ............................................................................................................... 127
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget
And Actual – Grants Special Revenue Fund ..................................................................................... 128
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget
And Actual – LMIHAF Capital Projects Fund .................................................................................... 129
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget
And Actual – Pension Liability Debt Service Fund ............................................................................ 129
Schedule of Changes in the Net Pension Liability and Related Ratios ............................................... 130-132
Schedule of Changes in the Net OPEB Liability and Related Ratios .................................................. 133
Schedule of Contributions..................................................................................................................... 134-136
Schedule of Money Market Weighted Rate of Return .......................................................................... 136
Schedule of Contributions for the OPEB Plan ...................................................................................... 137
114
ii
FINANCIAL SECTION (Continued)
Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Other Governmental Funds .................................................................... 141-144
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Other Governmental Funds ............................................................................................................... 145-148
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Other Governmental Funds ............................................................................. 149-155
Statement of Net Position – Internal Service Funds ............................................................................ 160
Statement of Revenues, Expenses, and Changes in Fund Net Position
Internal Service Funds ..................................................................................................................... 161
Statement of Cash Flows – Internal Service Funds ............................................................................. 162
Combining Statement of Fiduciary Fund Assets and Liabilities ........................................................... 166
Combining Statement of Changes in Fiduciary Net Position ............................................................... 166
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................................... 169-170
Changes in Net Position – Last Ten Fiscal Years ......................................................................................... 171-172
Fund Balances – Governmental Funds – Last Ten Fiscal Years .................................................................. 173
Changes in Fund Balances – Governmental Funds – Last Ten Fiscal Years .............................................. 175-176
Assessed and Actual Valuation of All Taxable Property (Excluding Redevelopment Agency) -
Last Ten Fiscal Years ................................................................................................................................. 177
Property Tax Rates – All Direct and Overlapping Government Tax Rate 04-001
Largest Area in City – Last Ten Fiscal Years ............................................................................................. 177
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................................... 178
Top Ten Property Tax Payers – Current Year and Nine Years Ago ............................................................. 179
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ....................................................................... 181-182
Legal Debt Margin – Last Ten Fiscal Years................................................................................................... 183
Statement of Direct and Overlapping Bonded Debt ...................................................................................... 184
Principal Private Employers – Current Year and Nine Years Ago ................................................................ 185
Full-Time Actual and Budgeted City Employees by Function/Program– Last Ten Fiscal Years .................. 186
Operating Indicators by Function/Activity – Last Ten Fiscal Years ............................................................... 187-188
Capital Assets Statistics by Function/Activity ................................................................................................ 189
115
iii
CITY OF HUNTINGTON BEACH
December 16, 2021
Honorable Mayor, City Council and Citizens of the City of Huntington Beach:
In accordance with the requirements of the City Charter, and the City of Huntington Beach’s
ongoing commitment to transparent financial reporting, I am pleased to present the Annual
Comprehensive Financial Report (ACFR) for the year ended June 30, 2021.
As required by the City Charter, and to ensure the reliability of the information contained herein,
the City of Huntington Beach (the City) contracted with the independent auditing firm of Davis
Farr LLP. The goal of the audit was to provide reasonable assurance that the City’s financial
statements are free from material misstatement. In addition, Davis Farr LLP audits the City’s
major program expenditures of federal grants for compliance with Title 2 of the United States
Code of Federal Regulations Part 200 (Uniform Guidance). The report of the Single Audit is
published separately from this ACFR and may be obtained upon request from the City’s Finance
Department.
This report consists of management’s representations concerning the City’s finances. As such,
management assumes full responsibility for the completeness and accuracy of the information
presented in this document and that it is reported in a manner that fairly presents the financial
position and operations of the various funds of the City. To provide a reasonable basis for
making these representations, and assurance that the financial statements will be free from
material misstatement, management has established a comprehensive internal control
framework that is designed to both protect the government’s assets from theft, loss, or misuse
and to compile sufficient reliable information for financial statement conformity with GAAP. As
the cost of internal controls should not outweigh their benefits, the City’s comprehensive
framework of internal controls has been designed to provide reasonable assurance rather than
absolute assurance that the financial statements will be free from material misstatement.
We are pleased to report that Davis Farr LLP granted the City an unmodified (clean) opinion for
the financial statements of the City for the year ended June 30, 2021. The auditor’s opinion can
be found in the Financial Section of this report. GAAP requires that management provide a
narrative introduction, overview and analysis to accompany the financial statements in the form
of a Management Discussion and Analysis (MD&A). This transmittal letter is designed to
complement and should be read in conjunction with it. The MD&A can be found immediately
following the independent auditor’s report.
116
iv
Profile of the City of Huntington Beach
The City of Huntington Beach is home to a thriving beach community, located on the Orange
County coast, 35 miles south of Los Angeles and 90 miles north of San Diego. With a population
of 198,039 residents, it is known as Surf City due to its abundance of beaches; the year-round
sunny and warm Mediterranean climate; and its casual lifestyle. With over 10 miles of coastline
and iconic pier spanning 1,856 foot in length- the longest pier on the West Coast- Huntington
Beach plays host to over 16 million visitors annually.
As the fourth largest city in Orange County, and the 23rd largest in California by population,
Huntington Beach is recognized as a prime location to live, work and play, ranking #1 in the
nation for “Quality of City Services” and #18 for “Best-Run City in America Poll” by WalletHub
(June 2020) and one of the top three “Best Cities to Live In” by the Orange County Register for
the past five consecutive years. Huntington Beach was also ranked the 33rd Happiest City in
America by WalletHub (March 2021). The City boasts an annual median household income of
$91,318, 51 percent higher than the median household income for the United States, 28 percent
higher than the State of California and 6 percent higher than Orange County. In addition, more
than half of its residents, or 53 percent, have a college education. There are over 105,600
people employed by public and private entities in Huntington Beach.
Founded in the late 1880s, Huntington Beach was incorporated as a Charter City in 1909.
Huntington Beach has a Council/Manager form of government wherein seven City Council
members are elected to four-year terms, and the Mayor is filled on a rotating basis from the
incumbent Council Members. The City Attorney, City Clerk and City Treasurer positions are
also elected and serve four-year terms. The City of Huntington Beach is a full-service city
including police, fire, public works, and other key functional departments with a dedicated and
talented team of over 900 full-time equivalent employees.
In 2011, the unincorporated oceanfront community of Sunset Beach was officially annexed by
the City of Huntington Beach. Sunset Beach is a small beachfront community with
approximately 1,000 residents and 1.5 square miles of land. Beachfront properties with high
property values make this community a valuable addition to the City. Sunset Beach features
one of the widest and most pristine beaches in Southern California and is home to the historic
Sunset Beach Arts Festival.
A thriving beach community, Huntington Beach is home to numerous events, including the Great
Pacific Airshow – the only beachfront airshow on the West Coast featuring the U.S. Navy Blue
Angels, U.S. Marine Corps MV-22 Osprey Demo Team, U.S. Army Golden Knights, and many
others. This unique airshow, which first premiered in October 2016, has gained tremendous
popularity and attracts visitors from all over the world to view the two-day event.
The City’s century-old traditional Fourth of July Fireworks Show and Parade, known nationally
as “the largest Fourth of July Parade west of the Mississippi,” which was adapted in 2020 to
comply with State and County Shelter-in-Place orders, returned in 2021. In addition to the
traditional parade, 5K run, and Pier Plaza festival, the three-day event also included an all-new
Amusements Area, featuring a 75-foot tall ferris wheel, 90-foot Monster Slide, traditional
carnival games, and other family-friendly activities.
117
v
The City also hosts a variety of other exciting events for families and visitors such as the annual
Concours d’Elegance, Cherry Blossom Festival, Civil War Days, and other events. In November
2021, the City unveiled a new ice rink in Pier Plaza, kicking off its inaugural Winter Wonderland
event. Surf City Winter Wonderland will transform downtown Huntington Beach into a holiday
destination by providing various winter activities, such as ice-skating, live entertainment, festive
programming, and more.
Economic Condition and Outlook
As the economy continues to recover from the impacts of the COVID-19 pandemic and public
health guidelines become less restrictive, revenue sources such as Sales Tax and Transient
Occupancy Tax are anticipated to increase considerably in coming fiscal years. In addition, low
interest rates, recovering unemployment rates, rising consumer confidence, and recovery in the
hospitality and travel industries are expected to improve Huntington Beach’s economy;
however, continuing volatility in the financial and equity markets, along with the rapidly changing
economic picture and the length and continuing scope of the COVID-19 pandemic, adds a layer
of uncertainty to the City’s financial projections.
The City of Huntington Beach continues to thrive together through the motto “OneHB,” which
reflects the City’s commitment to facing the unprecedented challenges created by the COVID-
19 pandemic guided by the following principles:
To stay committed to being One Team: working together to serve the people of
Huntington Beach exceptionally to inspire pride in the community.
Work to have One Focus: to stay fanatical about achieving municipal excellence by
being active caretakers of our unique, people‐centric HB culture.
Continue to pursue One Goal: to ensure that HB continually improves its standing as a
premier coastal community as measured through the health of our people, our
organization, our infrastructure, and our community.
Property Tax
The City of Huntington Beach’s assessed valuations are very strong, reflecting both new
development and increased property values. The City’s Fiscal Year 2021/22 assessed property
value grew 2.6 percent to $47.3 billion. This solid performance, coupled with steady year-over-
year growth, reflects a stable property tax base that can weather steep declines in real estate
markets. Over 60 percent of parcels have an assessed valuation (AV) base year prior to 2004,
representing a significant amount of untapped AV. For Fiscal Year 2020/21, secured property
tax revenue collections totaled $61.1 million. For Fiscal Year 2021/22, secured property taxes
are estimated at $62.6 million, reflecting a 2.5 percent increase.
118
vi
Sales Tax
Huntington Beach’s business community is well-diversified with no single industry or business
dominating the local economy. Local businesses include aerospace and high technology,
petroleum, manufacturing, computer hardware and software, financial and business services,
hotel and tourism, automobile services, large-scale retailers, and surf apparel. The City’s
diverse sales tax base makes it a stable source of revenue and mitigates the impact of industry-
specific downturns as shown below.
119
vii
*Fiscal Year 2017/18 reflects nine months of data only due to the change in the City’s fiscal year
Transient Occupancy Tax (TOT)
Transient Occupancy Tax (TOT), a 10 percent tax applied to hotel stays within the City remains
strong as Huntington Beach remains a prime tourist destination and the hotel industry continues
to thrive. The City collected $10.4M in TOT revenues during Fiscal Year 2020/21, with the $0.8M
increase due to the lifting of Shelter-in-Place orders that was used to combat the COVID-19
virus on business and leisure travel.
*Fiscal Year 2017/18 reflects nine months of data only due to the change in the City’s fiscal year
Budget Development and Monitoring
The budget is prepared under the supervision of the City Manager and transmitted to the City
Council for deliberation at least 30 days prior to the end of the fiscal year. Pursuant to the City’s
Charter, the City Council must adopt the annual budget by June 30 th and may amend or revise
120
viii
it any time at a properly noticed meeting. Budgetary control is at the Department level within
each fund and a Department Head, with the Chief Financial Officer’s approval, may transfer
funds within like categories (operating and capital expenditures) of the same Department. The
transfer of funds for salaries and benefits requires additional approval by the City Manager or
his designee.
Cash Management Policies and Practices
Surplus cash is invested by the elected City Treasurer, in investments allowed by the City’s
Investment Policy. The Investment Policy is adopted annually by the City Council after approval
by the Investment Advisory Board. It outlines guidelines to meet the daily cash flow needs of
the City, maximize the efficiency of the City’s cash management system, and identifies prudent
investment vehicles for cash balances. The rate of return earned for the year ended June 30,
2021 was 1.41 percent. The City Treasurer, as required by California Government Code 53601,
has prepared an annual Statement of Investment Policy which allows the City to meet current
obligations while earning a market rate of return. Further information regarding the City’s cash
and investments can be found in Note 2 of the financial statements.
Long-Term Financial Planning and Major Initiatives
The Strategic Goals provides the framework for the goals and objectives of the City. The City
Council has six Strategic Goals:
Community Engagement
Homelessness Response
Economic Development & Housing
Infrastructure and Parks
COVID-19 Response
Overall Organizational Fiscal Stability
The goals drive both short and long-term budgetary decisions and the daily operations of the
City by ensuring everyone is consistently working to achieve the goals outlined in the Plan.
Pension Obligation Bonds
To meet the goal of strengthening overall financial sustainability, the City issued Pension
Obligation Bonds (POBs) in April 2021 in the amount of $363.6 million to refinance 85 percent
of its Unfunded Pension Liability (UAL) with CalPERS. In conjunction with the issuance of the
POBs, the City also implemented a robust plan to manage future pension liabilities which
includes the following provisions:
A minimum $1 million annual contribution to the City’s Section 115 Pension Trust
100% of the first year refinance savings will be contributed to the Section 115 Trust in
Fiscal Year 2021/22, then 50 percent annually thereafter (increased for CPI)
At the end of each fiscal year, 50 percent of any unassigned General Fund surplus would
be dedicated to the Section 115 Trust
Accelerated repayment of any new UAL to be paid from the Section 115 Trust or General
Fund Pension Rate Stabilization Reserve
121
ix
Paying down these liabilities, controlling the City’s pension costs through various mechanisms
including the issuance of Pension Obligation Bonds, funding a Section 115 trust, and creating
an Unfunded Pension Liability Policy helps build capacity to manage future pension cost
increases. While the impact of higher CalPERS costs will not be entirely mitigated, this proactive
strategy has placed Huntington Beach in a stronger financial position than many other cities.
American Rescue Plan Act (ARPA)
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 into law,
which allocated $1.9 trillion in economic recovery funding for families, businesses, schools, and
governments impacted by the COVID-19 public health crisis. Pursuant to that legislation, the
City was allocated $29.6 million in funding, 50 percent of which was received in May 2021. City
Council established a three-person City Council Ad-hoc Subcommittee in June 2021 to develop
a proposed ARPA spending plan that either addressed immediate, current needs of the City, or
constituted a transformative, “Plan for the Future” project with long-term positive community
impacts. On September 7, 2021, City Council approved an ARPA spending plan which includes
the following projects:
Oak View Rising Program: to fund implementation efforts associated with
livability/landscape improvements, parking impact mitigation, community center facility
planning, and youth programming efforts in the Oakview area.
Community Loan Program: to provide loan funding for start-ups and smaller, less
established businesses where borrowers are making 80 percent of the Area Median
Income (AMI) or less and to support existing mid-sized qualified businesses as they look
to expand within the City.
Economic Development Fund: to establish a fund to help support local business
expansion efforts, with a particular focus on environmental mitigation.
Major City Facility Upgrade Project: to fund the preliminary planning work associated
with the City’s proposed Design-Build-Finance-Operate-Maintain (DBFOM) major City
facility upgrade project. Through this initial effort, the City will be able to fund site
assessment work, facility master planning, and conceptual design efforts.
Police Technology Infrastructure Improvements: to upgrade HBPD's Computer Aided
Dispatch (CAD) & Records Management Systems (RMS) technology infrastructure for
police department response.
World Skate Skatepark Development: to ascertain the feasibility of developing local
Olympic-quality recreational facilities to bring LA 2028 Olympics action sports to HB (for
skateboarding, surfing, and BMX).
Joint Youth Training Center for Police & Fire: to build a new Joint Youth Training Center
on the CNET training ground with new Fire and Police equipment to develop a two-track
program that provides vocational and educational pathways for local students and
underserved youth.
Healing Center Project
During the past fiscal year, the City has made tremendous strides in its efforts to end
homelessness in Huntington Beach through a multifaceted project which includes the
development of a premier homeless prevention program that will incorporate transitional
housing program options, shelter options for families and children, and additional permanent
supportive housing units in the community. As a part of this effort, the City constructed a 174-
122
x
bed temporary Navigation Center at 17642 Beach Boulevard in partnership with the County of
Orange, which opened in December 2020. The Navigation Center, operated by Mercy House,
will provide homeless adults with access to healthcare, dental, and behavioral services. Staff
will also assist in finding employment and permanent housing for this vulnerable population to
help them on their path to housing security.
In April 2021, City Council also approved the creation of Orange County’s first mobile mental
health response program in partnership with Be Well OC. This mobile response team, launched
in September 2021, is composed of two crisis counselors and assists with many non-emergency
and non-medical situations, including public assistance with lack of basic needs (e.g., food,
shelter, water) and homelessness, in collaboration with the Huntington Beach Homeless Task
Force. Currently, the program is available seven days a week, 12 hours per day, and is planned
to expand to 24-hour coverage by Winter 2021-22.
City Council also approved the use of $2.5 million in ARPA funds to assist in the creation of a
healing center campus facility that embeds medical, behavioral health, recuperative care, and
respite housing options that integrate into a broader continuum of mental health/substance
abuse care. An additional $2.5 million was approved to facilitate the production of additional
Permanent Support Housing units in the City to assist in homeless mitigation efforts.
Downtown and Beach Enhancements
In May 2021, the City rolled out its first Mobi-Mat to improve beach accessibility for visitors with
disabilities, parents with strollers, and others with limited mobility. The mat, located near 6 th
Street and PCH, provides a stable walkway across the sand and to the water’s edge. Due to
immense popularity, a second Mobi-Mat was made available in October 2021.
The City also launched a five-month pilot micro-mobility program in July 2021. This free transit
service, in partnership with Circuit, provides five low-speed, six-seat electric shuttles to transport
residents, workers, and visitors over short distances within the downtown area using the Circuit
app and is available seven days a week. This option will reduce greenhouse gas emissions and
also encourage visitors to “park once” and explore all that Huntington Beach has to offer.
As part of the City’s commitment to improving the downtown area, City Council approved the
use of $1.75 million in ARPA funds towards Downtown Revitalization Improvements to develop
final plans for reconfiguring the broader downtown resort district, including enhancements to
Main Street, while investing in improvements to enhance connectivity and revitalize businesses
and activities.
Awards and Acknowledgements
The City of Huntington Beach has once again received the “Certificate of Achievement for
Excellence in Financial Reporting” award bestowed by the Government Finance Officers’
Association (GFOA) of the United States and Canada for the 35th consecutive year. Receipt of
the award requires government entities to publish transparent, easily readable and efficiently
organized Annual Comprehensive Financial Reports, conforming to program, accounting, and
legal standards.
The Certificate of Achievement earned for the fiscal year ended June 30, 2020, is valid for one
year only. The City believes that this Annual Comprehensive Financial Report continues to
123
xi
conform to the Certificate of Achievement Program requirements and will be submitted to the
GFOA for its consideration for another award.
I wish to thank the City Council, City Manager, and City Departments for their continued
diligence in their role as fiscal stewards for the City of Huntington Beach. Without their
leadership and support, the favorable financial results contained in this report would not have
been possible. I would also like to thank the Finance Commission, a seven member body
appointed by the City Council, which has been instrumental in helping the City maintain its long
term goal of financial sustainability.
The preparation of this report would also not have been possible without the professional
dedicated staff of the Finance Department. Specifically, I would like to thank Sunny Rief, Zack
Zithisakthanakul, Ian Wuh, John Willard, Ming Zhai, Leslie Zimmer, Michael Dolan, and Thuy
Vi for their hard work and dedication.
Respectfully,
Dahle Bulosan
Chief Financial Officer
124
xii
City of Huntington Beach
City Council
Barbara Delgleize, Mayor
Mike Posey, Mayor Pro Tem
Rhonda Bolton, Councilmember
Kim Carr, Councilmember
Dan Kalmick, Councilmember
Natalie Moser, Councilmember
Erik Peterson, Councilmember
Executive Team
Oliver Chi, City Manager
Travis Hopkins, Assistant City Manager
Elected Department Heads
Alisa Backstrom, City Treasurer
Robin Estanislau, City Clerk
Michael Gates, City Attorney
Department Directors
Dahle Bulosan, Finance
Sean Crumby, Public Works
Chief Scott Haberle, Fire
Interim Chief Julian Harvey, Police
Ursula Luna-Reynosa, Community Development
Brittany Mello, Interim Administrative Services
Chris Slama, Community & Library Services
125
xiii
126
xiv
127
FINANCIAL SECTION
128
Independent Auditor’s Report
City Council
City of Huntington Beach
Huntington Beach, California
Report on the Financial Statements
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 Huntington Beach, California, as of June 30, 2021, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
129
Opinions
In our opinion, 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 of
Huntington Beach, California, as of June 30, 2021, 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.
Emphasis of Matter
During the year ended June 30, 2021, the City implemented Governmental Accounting
Standards Board (GASB) Statement No. 84: Fiduciary Activities. Our opinion is not modified
with respect to this matter.
The financial statements for the year ended June 30, 2021 reflect certain prior period
adjustments as described further in note 19 to the financial statements. Our opinion is not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information for the General
Fund and each major special revenue fund, schedule of changes in net pension liability and
related ratios, schedule of pension contributions, schedule of money market weighted rate
of return, schedule of changes in net OPEB liability and related ratios, and schedule of OPEB
contributions be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the City of Huntington Beach’s basic financial statements. The
combining and individual fund financial statements and schedules, the introductory section
and the statistical section are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The combining and individual fund financial
statements and schedules are the responsibility of management and were derived from and
relates directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures,
130
including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining
and individual fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole. The introductory section
and the statistical section have not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 16, 2021 on our consideration of the City of Huntington Beach'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 internal control
over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City of
Huntington Beach’s internal control over financial reporting and compliance.
Irvine, California
December 16, 2021
131
MANAGEMENT DISCUSSION
AND
ANALYSIS
132
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
As management of the City of Huntington Beach, we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City of
Huntington Beach for the year ended June 30, 2021. We encourage readers to consider
the information presented here in conjunction with additional information that we have
furnished in our Letter of Transmittal, which can be found on pages iii-xi of this report.
Financial Highlights
Below is a summary of the City’s government-wide financial information (in thousands):
The City of Huntington Beach’s total assets and deferred outflows of resources
exceeded its liabilities and deferred inflows of resources at the close of the most
recent fiscal year by $691,730,000. Total net position increased modestly by
$3,567,000 or 0.5 percent in spite of the growth in assets primarily as a result of
the ramp up in liabilities and increase in deferred outflows of resources related to
pension and other postemployment benefits.
Long-term obligations increased by $377,840,000 or 70.2 percent. This increase
is primarily due to issuance of Pension Obligation Bonds in the amount of
$363,645,000 to refinance 85 percent of the City’s unfunded pension liability with
CalPERS. In addition, a new lease in the amount of $12,753,000 was approved in
Fiscal Year 2020/21 to finance the purchase of three helicopters, one rescue boat,
and one fire engine.
Deferred outflows of resources increased by $361,306,000 or 625.5 percent
primarily due to pension contributions made subsequent to the measurement date
including the unfunded liability payment to CalPERS totaling $362,430,000 made
from proceeds of the Pension Obligation Bond. Deferred inflows of resources
increased by $5,028,000 or 35.2 percent primarily due to changes in assumptions
and the differences between the expected and actual experience used to
determine the City’s net pension liability.
June 30, 2021
June 30, 2020
(Restated)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Assets 1,254,251$ 1,214,369$ 39,882$ 3.3%
Deferred Outflows of Resources 419,067 57,761 361,306 625.5%
Liabilities 962,271 569,678 392,593 68.9%
Deferred Inflows of Resources 19,317 14,289 5,028 35.2%
Total Net Position 691,730 688,163 3,567 0.5%
Unrestricted Net Position (236,030) (236,041) 11 0.0%
Long-Term Obligations 915,921 538,081 377,840 70.2%
Program Revenues 136,519 146,713 (10,194) -6.9%
Taxes 186,787 175,663 11,124 6.3%
Other General Revenues 26,660 9,271 17,389 187.6%
Expenses 346,399 332,175 14,224 4.3%
Total Governmental and Business-Type Activities
133
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Program revenues decreased by $10,194,000 or 6.9 percent. The decrease is
primarily due to one-time revenues received in Fiscal Year 2019/20 for the payoff
of Hermosa Vista and Huntington Pointe loan repayments totaling almost
$7,400,000, as well as affordable housing in-lieu fees of $2,200,000 paid by the
developer to fulfill the affordable housing requirement for the Sea Dance Housing
Development. Additionally, the City experienced reductions in City-owned beach
concessionaire and recreation class revenues as a result of a temporary rent
abatement program beginning in March 2020 to help offset the loss in revenues
small businesses are experiencing due to COVID-19, and the cancellation of in-
person recreation programs in accordance with State and County health orders in
place in prevent the spread of COVID-19.
Expenses increased by $14,224,000 or 4.3 percent largely due to additional costs
incurred related to the COVID-19 pandemic. The City awarded $5,423,000 in
grants to 785 local small business and non-profits impacted by COVID-19 utilizing
CARES and other funds passed through the County of Orange. Additionally, the
City incurred other COVID-19 related expenses, primarily within the Police and
Fire departments, for increased labor costs related to paramedic transport, vaccine
pod staffing, and overtime to maintain essential levels of service which are
anticipated to be reimbursed with FEMA Public Assistance funds. Expenses also
increased due to rising pension and workers compensation costs allocated to all
City functions.
Overview of the Financial Statements
This discussion and analysis serves as an introduction to the City of Huntington Beach’s
basic financial statements. The City of Huntington Beach’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
certain other supplementary information in addition to the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City’s financial condition and are prepared similarly to those in the private
sector.
The Statement of Net Position presents information on all of the City’s assets, liabilities,
deferred outflows and inflows with the difference between them reported as net position.
Over time, continued increases or decreases in net position may indicate whether the
City’s financial condition is improving or deteriorating.
The Statement of Activities presents information on how the City’s net position changed
during the most recent fiscal year. These changes are reported on the full accrual basis
when the economic event occurs (not when the cash is received or paid).
134
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
The government-wide financial statements separate functions that are primarily
supported by taxes and intergovernmental revenues (governmental activities) from
functions that are supported by user fees (business-type activities). Governmental
activities include the City Council, City Manager, City Treasurer, City Attorney, City Clerk,
Finance, Community Development, Fire, Information Services, Police, Community
Services, Library Services, and Public Works departments. Business-type activities
include Water, Sewer, Refuse, and Hazmat Services.
The government-wide financial statements include the City and all of its component units
that are legally separate but whose activities entirely support the City of Huntington
Beach.
The government-wide financial statements can be found on pages 25-26 of this report.
Fund Financial Statements
The City separates financial activities into funds to maintain control over resources that
have been legally separated. All of the funds of the City can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for the same functions reported in governmental
activities in the government-wide financial statements. However, the focus in the
governmental fund section of these financial statements is on near-term resource inflows
and outflows available for spending, as well as balances of resources available for
spending at the end of the fiscal year.
It is useful to compare information presented for the governmental funds to information
presented for governmental activities in the government-wide financial statements. The
reconciliations indicate to the reader the differences in financial reporting between the
governmental activities section and the governmental funds section.
The City maintains 26 individual governmental funds. Information is presented separately
in the governmental funds Balance Sheet and in the governmental funds Statement of
Revenue, Expenditures, and Changes in Fund Balances for the General Fund, Grants
Special Revenue Fund, Low and Moderate Income Housing Asset Fund (LMIHAF) and
Pension Liability Debt Service Fund, all of which are considered to be major funds. Data
from the other 22 smaller funds are combined into a single, aggregated presentation.
Individual fund data for each of these other governmental funds is provided in combining
statements elsewhere in this report.
The City provides an annual appropriated budget for its governmental funds. Budgetary
comparison schedules for the General Fund and other major governmental funds (Grants
Special Revenue Fund, LMIHAF Capital Projects Fund, and Pension Liability Debt
135
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Service Fund) are required to be presented and are included on pages 127-129 of this
report and demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 27 and 30 of
this report.
Proprietary Funds
The City maintains two different types of proprietary funds, which are used to account for
the same activities as the business-type activities in the government-wide financial
statements. Enterprise funds are used to report the same functions presented as
business-type activities in the government-wide financial statements. The City uses
enterprise funds to account for its Water, Sewer Service, Refuse, and Hazmat Service
activities. Internal Service funds are used in accounting as a device to accumulate and
allocate costs internally among the City's various functions. The City uses internal service
funds to account for its self-insurance worker’s compensation activities, self-insurance
general liability activities, and equipment replacement needs. Because these services
predominantly benefit governmental rather than business-type functions, they have been
included with governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provides
information for Water, Sewer Service, Refuse, Hazmat Service, Self-Insurance Workers’
Compensation, Self-Insurance General Liability, and Equipment Replacement Funds.
The basic proprietary fund financial statements can be found on pages 31-33 of this
report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of
Huntington Beach’s own programs. The accounting used for fiduciary funds is much like
that used for proprietary funds.
The basic fiduciary fund financial statements can be found on page 34 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found on pages 36-123 of this report.
136
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Other information
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City’s progress in
funding its obligation to provide pension and OPEB benefits to its employees and General
Fund and major special revenue funds budget-to-actual comparisons. Required
supplementary information can be found on pages 126-137 of this report.
The combining statements and schedules referred to earlier in connection with other
governmental funds is presented immediately following the required supplementary
information on pensions. Combining and individual fund statements and schedules can
be found on pages 141-148 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve, over time, as a useful indicator of a government’s
financial position. At the end of the current fiscal year, the City reported positive net
position balances for both governmental and business-type activities, with total assets
plus deferred outflows exceeding liabilities plus deferred inflows by $691,730,000.
Below is a summary schedule of the City’s net position at June 30, 2021 (in thousands):
Governmental Activities June 30, 2021
June 30, 2020
(Restated)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Current and Other Assets 276,665$ 257,987$ 18,678$ 7.2%
Capital Assets 737,256 714,759 22,497 3.1%
Total Assets 1,013,921 972,746 41,175 4.2%
Deferred Outflows of Resources 393,130 54,499 338,631 621.4%
Current and Other Liabilities 34,751 20,645 14,106 68.3%
Long-Term Obligations 864,784 508,578 356,206 70.0%
Total Liabilities 899,535 529,223 370,312 70.0%
Deferred Inflows of Resources 17,716 13,374 4,342 32.5%
Net Position:
Net Investment in Capital Assets 699,204 673,498 25,706 3.8%
Restricted 65,755 85,673 (19,918) -23.2%
Unrestricted (275,159) (274,523) (636) -0.2%
Total Net Position 489,800$ 484,648$ 5,152$ 1.1%
Business-Type Activities June 30, 2021
June 30, 2020
(Restated)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Current and Other Assets 97,861$ 98,838$ (977)$ -1.0%
Capital Assets 142,469 142,785 (316) -0.2%
Total Assets 240,330 241,623 (1,293) -0.5%
Deferred Outflows of Resources 25,937 3,262 22,675 695.1%
Current and Other Liabilities 11,599 10,952 647 5.9%
Long-Term Obligations 51,137 29,503 21,634 73.3%
Total Liabilities 62,736 40,455 22,281 55.1%
Deferred Inflows of Resources 1,601 915 686 75.0%
Net Position:
Net Investment in Capital Assets 142,469 142,785 (316) -0.2%
Restricted 20,332 22,248 (1,916) -8.6%
Unrestricted 39,129 38,482 647 1.7%
Total Net Position 201,930$ 203,515$ (1,585)$ -0.8%
137
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Analysis of the City’s Net Position
Current and Other Assets: The increase in current and other assets of $18,678,000 for
governmental activities is mainly due to the increase in cash and receivables balances
related to increased property and sales tax revenues, as well as the receipt of the first
tranche of American Rescue Plan Act funds in May 2021 totaling $14,803,000.
The decrease in current and other assets of $977,000 for business-type activities is
primarily due to a reduced cash balance in the Water Master Plan fund due to ongoing
large capital project costs in Fiscal Year 2020/21 that were delayed from prior year,
including water main replacements and the City’s share of slip lining the OC-44 imported
water transmission line.
Current and Other Liabilities: Current and other liabilities for governmental activities
increased by $14,106,000 and increased by $647,000 for business-type activities due to
normal fluctuations in the accounts payable and payroll cycles. For governmental
activities, the majority of the increase is related to American Rescue Plan Act Funds
received in May 2021 that was recorded as unearned revenue.
Deferred Outflows and Inflows of Resources: The increase in deferred outflows of
resources of $338,631,000 and $22,675,000 for governmental activities and business-
type activities, respectively, is mainly due to deferral of pension contributions made
subsequent to the measurement date, including the unfunded liability payment to
CalPERS totaling $362,430,000 made from proceeds of the Pension Obligation Bond.
The increase in deferred inflows of resources of $4,342,000 for governmental activities
and $686,000 for business-type activities is related to the actuarially determined
amortization of changes in assumptions, differences between projected and actual
earnings on pension plan investments, and differences between expected and actual
experience used to determine the net pension and other postemployment benefits
liabilities. See Notes 6, 7, and 8 for additional information.
Long-Term Obligations: Long-term obligations increased by $356,206,000 for
governmental activities and $21,634,000 for business-type activities primarily due to the
City issuing a $363,645,000 Pension Obligation Bond to refinance 85 percent of its
unfunded pension liability with CalPERS.
Net Investment in Capital Assets: The largest portion of the City’s net position reflects
investment in capital assets (e.g., land, buildings, machinery, equipment, and
infrastructure), less any related debt used to acquire those assets that is still outstanding.
The City uses capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the City’s investment in its capital assets
are reported net of related debt, the resources needed to repay this debt must be provided
from other sources, since capital assets themselves cannot be used to liquidate these
liabilities. Net position invested in capital assets net of related debt from governmental
138
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
activities increased $25,706,000 or 3.8 percent, primarily due the acquisition of property
and related construction of the City’s 174-bed Navigation Center and residential street
improvements. Net position invested in capital assets net of related debt from business-
type activities decreased $316,000 or 0.2 percent primarily due to normal year to year
depreciation.
Restricted Net Position: An additional portion of the City’s net position is subject to
external (legally imposed or statutory) restrictions ($65,755,000 for governmental
activities, and $20,332,000 for business-type activities). These amounts represent 13.4
percent and 10.1 percent of net position for governmental activities and business-type
activities, respectively. Restricted net position from governmental activities decreased
$19,918,000 or 23.2 percent, largely due to the change in restricted net position in the
LMIHAF Capital Project fund as funds were spent for the purchase of property to construct
a 174-bed Navigation Center, and in the Gas Tax Special Revenue fund for the
construction of various street improvements, including arterial rehabilitation and
residential street overlay projects. Restricted net position from business-type activities
decreased by $1,916,000 or 8.6 percent primarily due to an increase in restricted Water
Master Plan funds available for capital projects as funds are spent.
Unrestricted Net Position: The unrestricted net position (negative $275,159,000 for
governmental activities and $39,129,000 for business-type activities) represent negative
56.2 percent and 19.4 percent, respectively, of net position for governmental activities
and business-type activities. Unrestricted net position for governmental activities
decreased $636,000 or 0.2 percent. Unrestricted net position for business-type activities
increased by $647,000 or 1.7 percent during the year due to the increase in Investment
in Capital Assets from the Sewer fund in fiscal year 2020/21.
139
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
A condensed summary of governmental activities (in thousands) follows:
Revenues: June 30, 2021 June 30, 2020
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Program Revenues:
Charges for Current Services 53,683$ 59,819$ (6,136)$ -10.3%
Operating Grants and Contributions 6,013 8,141 (2,128) -26.1%
Capital Grants and Contributions 10,192 14,483 (4,291) -29.6%
Total Program Revenues 69,888 82,443 (12,555) -15.2%
General Revenues:
Property Taxes 99,958 94,263 5,695 6.0%
Sales Taxes 51,162 44,616 6,546 14.7%
Utility Taxes 18,374 18,149 225 1.2%
Franchise Taxes 8,040 7,872 168 2.1%
Transient Occupancy Tax 9,253 10,763 (1,510) -14.0%
Use of Money and Property 4,399 3,208 1,191 37.1%
From Other Agencies - Unrestricted 22,000 3,317 18,683 563.2%
Total General Revenues 213,186 182,188 30,998 17.0%
Total Revenues 283,074 264,631 18,443 7.0%
Expenses:
City Council 423 405 18 4.4%
City Manager 11,163 3,328 7,835 235.4%
City Treasurer 340 317 23 7.3%
City Attorney 3,140 3,136 4 0.1%
City Clerk 1,147 949 198 20.9%
Finance 6,828 6,661 167 2.5%
Community Development 19,716 15,722 3,994 25.4%
Fire 65,960 62,840 3,120 5.0%
Information Services 6,230 8,643 (2,413) -27.9%
Police 102,415 97,204 5,211 5.4%
Community Services 11,365 12,539 (1,174) -9.4%
Library Services 6,181 5,776 405 7.0%
Public Works 40,270 45,834 (5,564) -12.1%
Interest on Long-Term Debt 2,706 1,686 1,020 60.5%
Total Expenses 277,884 265,040 12,844 4.8%
Change in Net Position Before Transfers 5,190 (409)
Transfers (38) (38)
Change in Net Position 5,152 (447)
Net Position - Beginning of Year 478,901 479,348
Cumulative Effect of Changes in
Accounting Principles 5,747 -
Net Position - Beginning of Year as Restated 484,648 479,348
Net Position - End of Year 489,800$ 478,901$
Governmental Activities
140
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
The cost of all governmental activities this year was $277,884,000. However, as shown
in the Statement of Activities, the amount that taxpayers ultimately financed for these
activities was $207,996,000, because costs of $53,683,000 were paid by those who
directly benefited from the programs, or by other governments and organizations that
subsidized certain programs with operating grants and contributions of $6,013,000, and
capital grants and contributions of $10,192,000. Overall, the City’s governmental program
revenues were $69,888,000. The City paid for the remaining “public benefit” portion of
governmental activities with $213,186,000 in taxes and general revenue (some of which
may only be used for certain programs) and with other revenues, such as interest and
general entitlements.
Charges for current services decreased $6,136,000 or 10.3 percent. As noted in the
financial highlights section, the absence of one-time revenue sources from large
development projects and City’s responses to help mitigate the risks posed by COVID-19
negatively impacted the City’s recreational fee revenue which caused the Charges for
Current Services to drop.
Operating Grants and Contributions decreased by $2,128,000 or 26.1 percent and Capital
Grants and Contributions have decreased by $4,291,000 or 29.6 percent, primarily due
to the one-time Hermosa Vista and Huntington Pointe loan repayments of almost
$7,400,000 received in the prior fiscal year.
Program expenses increased by $12,844,000 or 4.8 percent due to the rise in pension
and workers compensation costs coupled with the increase in spending to mitigate the
effects of COVID-19. As mentioned previously, the City awarded $5,423,000 in grants to
785 local small business and non-profits impacted by COVID-19 using grant funds
provided by the County of Orange. Police and Fire also incurred additional COVID-19
related personnel costs by providing services such as paramedic transport of COVID-19
patients, vaccine pod staffing, and overtime to maintain essential levels of service, which
is anticipated to be reimbursed through FEMA Public Assistance funds. To help fund
some of these increased costs by other departments, Public Works decreased their
overall spending by $5,564,000.
Total resources available during the year to finance governmental operations were
$767,722,000 consisting of restated net position at July 1, 2020 of $484,648,000, program
revenues of $69,888,000, and general revenues of $213,186,000. Total expenses for
governmental activities during the year were $277,884,000 plus transfers of $38,000.
Thus, net position increased by $5,152,000 or 1.1 percent, to $489,800,000.
141
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
A condensed summary of business-type activities (in thousands) follows:
The City’s net position from business-type activities decreased by $1,623,000 before
transfers. This is mainly due to increases in Water expenses for capital projects including
the City’s share of slip lining the OC-44 imported water transmission line and water main
replacements.
The cost of all business-type activities this year was $68,515,000. As shown in the
Statement of Activities, the amount paid by users of the systems was $66,631,000, other
revenue was $261,000, and transfers were $38,000. Beginning net position was
$203,515,000 and ending net position was $201,930,000, a decrease of $1,585,000
which is less than a tenth of a percentage. Of the ending net position amount,
$142,469,000, or 70.6 percent, was invested in capital assets, $20,332,000 or 10.1
percent was restricted for expenses for the Water Master Plan, and $39,129,000, or 19.4
percent was unrestricted.
Transfers in for business-type activities were $38,000 for the current year, which is the
same as prior year.
June 30, 2021 June 30, 2020
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Program Revenues:
Charges for Current Services 66,631$ 64,270$ 2,361$ 3.7%
Total Program Revenues 66,631 64,270 2,361 3.7%
Use of Money and Property 261 2,746 (2,485) -90.5%
Total Revenues 66,892 67,016 (124) -0.2%
Expenses:
Water Utility 46,054 44,463 1,591 3.6%
Sewer Service 9,284 9,828 (544) -5.5%
Refuse Collection 12,936 12,609 327 2.6%
Hazmat Service 241 235 6 2.6%
Total Expenses 68,515 67,135 1,380 2.1%
Increase (Decrease) in Net Position
Before Transfers (1,623) (119)
Transfers 38 38
Total Change In Net Position (1,585) (81)
Net Position - Beginning of Year 203,515 203,596
Net Position - End of Year 201,930$ 203,515$
Business-Type Activities
142
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Financial Analysis of the City’s Major Governmental Funds
Below is an analysis of the City’s major governmental fund activities for the year (in
thousands):
The General Fund Balance increased by $12,486,000 due to increased property and
sales tax revenues. The City also received one-time revenues from AES Southland
Development, Inc. totaling $4,900,000 related to improvements in the Southeast area, as
well as Strike Team revenues totaling $1,458,000 for Fire department wildfire response
through the California Fire Service and Rescue Emergency Mutual Aid System managed
by CalOES. The Section 115 trust fund balance also increased by $2,875,000 due to
budgeted contributions to the trust and strong investment returns.
The Grants Special Revenue Fund Balance decreased by $2,207,000 primarily due to
the increase in COVID-19 related expenditures that is anticipated to be reimbursed with
FEMA Public Assistance Disaster Relief funds, and other capital projects that have not
been reimbursed by the granting agencies. The bulk of the expenditure increase is related
to the Small Business Grant Program and construction of a temporary Navigation Center
Program totaling $5,423,000 and $5,610,000, respectively.
The LMIHAF Capital Projects Fund Balance decreased by $5,863,000 primarily as a
result of the acquisition of property for the construction of a 174-bed Navigation Center.
The Pension Liability Fund increased by $9,083,000, largely due to revenues set aside
from the voter-approved property tax override dedicated to the payment of Public Safety
pension costs. The Fiscal Year 2020/21 revenues includes a one-time true up payment
of $908,000 from the County for override tax generated from the former Redevelopment
area.
June 30, 2021
June 30, 2020
(Restated)
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Total Fund Equity:
General Fund 94,609$ 82,123$ 12,486$ 15.2%
Grants Special Revenue Fund 2,354 4,561 (2,207) -48.4%
LMIHAF Capital Projects Fund 3,622 9,485 (5,863) -61.8%
Pension Liability Fund 16,943 7,860 9,083 0.0%
Total Fund Equity 117,528$ 104,029$ 13,499$ 13.0%
Governmental Funds
143
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Financial Analysis of the City’s Major Proprietary Funds
Below is an analysis of the fund equity of the City’s proprietary funds (in thousands):
The Water Fund total net position decreased by $3,408,000 due to planned capital
expenditures exceeding revenues in Fiscal Year 2020/21, which caused the unrestricted
net position to decline by $879,000. The Sewer Fund net position increased by
$1,678,000 and unrestricted net position increased by $1,359,000 due to planned sewer
projects being deferred to the following year. In addition, all enterprise funds with the
exception of the Water Fund generated revenues that exceeded the expenses incurred
for the current fiscal year.
Long-Term Obligations
Below is a schedule of the changes to the City’s long-term obligations (in thousands):
Governmental Activities:June 30, 2020 Additions Retirements June 30, 2021
Revenue Bonds 35,665$ 19,275$ (25,395)$ 29,545$
Compensated Absences 12,633 5,971 (5,199) 13,405
Claims Payable 37,155 23,258 (13,634) 46,779
Pollution Remediation 2,000 - - 2,000
LED Lighting Phase I 546 - (114) 432
I-Bank CLEEN Loan 2,171 - (289) 1,882
CEC Loan 2,588 - (131) 2,457
Pension Obligation Bonds - 341,501 - 341,501
Leases Payable 5,241 12,753 (5,241) 12,753
Total Long-Term Obligations
Governmental Activities 97,999 402,758 (50,003) 450,754
Business-Type Activities:
Compensated Absences 1,615 542 (731) 1,426
Pension Obligation Bonds - 22,144 - 22,144
Business-Type Activities:1,615 22,686 (731) 23,570
Total Long-Term Obligations 99,614$ 425,444$ (50,734)$ 474,324$
June 30, 2021 June 30, 2020
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Net Position:
Water Fund 121,825$ 125,233$ (3,408)$ -2.7%
Sewer Fund 79,953 78,275 1,678 2.1%
Refuse Fund 48 (83) 131 157.8%
Hazmat Service Fund 104 90 14 15.6%
Total Net Position 201,930$ 203,515$ (1,585)$ -0.8%
Unrestricted Net Position:
Water Fund 10,246$ 11,125$ (879)$ -7.9%
Sewer Fund 28,865 27,506 1,359 4.9%
Refuse Fund (86) (239) 153 64.0%
Hazmat Service Fund 104 90 14 15.6%
Total Unrestricted Net Position 39,129$ 38,482$ 647$ 1.7%
Enterprise Funds
144
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Additional information on the City’s long-term debt is shown in Note 11 to the financial
statements. The City of Huntington Beach is legally restricted to issuing general obligation
bonds to 12 percent of its assessed valuation. Since the City has no general obligation
bonds outstanding, the limit does not apply. The City’s total long-term obligations
increased by $374,710,000 or 376.2 percent from the prior fiscal year as the City issued
a $363,645,000 Pension Obligation Bond and $12,753,000 lease for public safety
equipment in Fiscal Year 2020/21.
The City continues to maintain strong credit ratings on all of its debt issues. Most notably,
on August 27, 2014 Fitch Ratings issued an AAA Implied General Obligation Bond rating
to the City of Huntington Beach and that same rating was most recently reaffirmed in July
2020.
The following are the ratings as determined by Standard and Poors and Fitch Ratings as
of June 30, 2021.
Capital Assets
The capital assets of the City are those assets which are used in the performance of the
City’s functions including infrastructure assets. The City has elected to use the “Basic
Approach” as defined by GASB Statement No. 34 for infrastructure reporting. The
following infrastructure networks are recorded as capital assets in the government-wide
financial statements:
Storm drain system including pump stations, drainage system and manholes.
Streets (including land underneath streets), traffic signals, curbs, gutters, and
sidewalks.
Debt Instrument S & P Fitch
1999 Tax Allocation Refunding Bonds AA-AA
2002 Tax Allocation Refunding Bonds AA-N/A
2020(a) Lease Revenue Bonds AA AA+
2020(b) Lease Revenue Bonds AA AA+
2021 Pension Obligation Bonds AA+AA+
145
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Below is a schedule of the City’s capital assets, net of accumulated depreciation (in
thousands):
Capital assets from governmental activities increased $22,497,000 or 3.1 percent. This
increase is largely due to street replacement infrastructure costs and the acquisition of
property and construction of a 174-bed Navigation Center. Capital assets from business-
type activities decreased $316,000 or 0.2 percent largely due to regular depreciation for
the year. Further information on the City’s capital assets can be found in Note 12 of the
financial statements.
General Fund Budgetary Highlights
Changes to Original Budget
Comparing the Fiscal Year 2020/21 General Fund Original (i.e. Adopted) Budget
expenditures amount of $206,060,000 to the final budgeted amount of $220,756,000
shows a net increase of $14,696,000, or 7.1 percent. This overall increase is due to
budget carryovers from the previous year and increased transfers to the Infrastructure
and Equipment Replacement funds of $4,400,000 and $1,319,000, respectively.
Final budgeted revenues for the General Fund increased $19,928,000 or 9.2 percent from
the original (adopted) budget for the fiscal year ended June 30, 2021. The change from
original to final budget occurred primarily as a result of adjustments made to budgeted
property tax, sales tax, utility tax, other taxes, and transfers to other funds.
Governmental Activities: June 30, 2021 June 30, 2020
Amount
Increase
(Decrease)
Percent
Increase
(Decrease)
Land 368,795$ 362,069$ 6,726$ 1.9%
Buildings 126,122 126,779 (657) -0.5%
Machinery and Equipment 19,583 13,962 5,621 40.3%
Construction in Progress 8,584 7,515 1,069 14.2%
Infrastructure 214,172 204,434 9,738 4.8%
Total Governmental Activities 737,256 714,759 22,497 3.1%
Business-Type Activities:
Land 3,907 3,907 - 0.0%
Buildings 65,847 68,359 (2,512) -3.7%
Machinery and Equipment 6,786 7,025 (239) -3.4%
Construction in Progress 1,782 442 1,340 303.2%
Infrastructure 64,147 63,052 1,095 1.7%
Total Business-Type Activities 142,469 142,785 (316) -0.2%
Total Capital Assets 879,725$ 857,544$ 22,181$ 2.6%
146
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Variance with Final Budget
General Fund actual revenues were greater than the final budget by $1,543,000 for the
fiscal year ended June 30, 2021. This favorable budget variance is due in large part to
actual investment returns exceeding budgeted amounts in the City’s Section 115 Trust.
General Fund expenditures were $4,910,000 less than the final budget. The favorable
budget variance is due in large part to the following:
The Community Services and Library Services Departments realized $2,758,000
in savings primarily due to a reduction in city-provided services impacted by the
COVID-19 pandemic.
The Public Works and Community Development Departments realized $1,050,000
in savings primarily due to differences in the projected versus actual timing of
design, construction, and maintenance contracts for projects, as well as the
deferral of various building and planning contracts.
Analysis of City’s Other Major Governmental Funds
Grants Special Revenue Fund
The fund balance in the Grant Special Revenue Fund decreased by $2,207,000, largely
due to COVID-19 related expenditures that are expected to be reimbursed through FEMA
Public Assistance funds.
LMIHAF Capital Projects Fund
The fund balance in the LMIHAF Capital Projects Fund decreased by $5,863,000 due to
the purchase of property to construct a temporary 174-bed Navigation Center in
partnership with the County of Orange.
Pension Liability Debt Service Fund
The fund balance in the Pension Liability Debt Service Fund increased by $9,083,000
due to revenues set-aside from the voter-approved property tax override dedicated to the
payment of Public Safety pension costs. The Fiscal Year 2020/21 revenues includes a
one-time true up payment of $908,000 from the County for override tax generated from
the former Redevelopment area.
147
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
Economic Factors and Next Year’s Budget
The Adopted Fiscal Year 2021/22 Budget is structurally balanced, totaling $424.4 million
in All Funds. This reflects a $65.4 million, or 18.2 percent, increase from the Fiscal Year
2020/21 Adopted All Funds Budget of $359.0 million. A significant portion of the increase
is due to added investment in essential infrastructure and equipment and the restoration
of COVID-19 temporary cost saving measures. The larger increases were due to the
following funds: Infrastructure Fund ($13.3 million), Equipment Fund ($3.4 million),
Pension Liability Fund ($22.6 million), Retirement Supplement Fund ($5.3 million), and
General Liability Fund ($2.6 million).
The General Fund budget, which provides the majority of public services to the
community, totals $228.0 million, reflecting a $11.1 million, or 5.1 percent increase from
the Fiscal Year 2020/21 budget of $216.9 million. This increase is a result of the added
Section 115 Trust pension liability set-aside, increased investment in infrastructure and
equipment, and restoration of temporary expenditure reductions made in response to the
COVID-19 pandemic. The Adopted General Fund Budget for next year has no reliance
on one-time revenues to fund ongoing operations, which is critical to maintaining the
City’s financial viability and success. Major highlights are as follows:
Public Safety: Funding for Public Safety represents 55 cents for every dollar spent in the
General fund. With over half of the General Fund Budget committed to the Police and Fire
Departments, the City has dedicated the greatest share of its resources, or $125.3 million
to these core services.
In the Police Department, the budget adds $2.3 million in equipment funds, largely to
finance the purchase of three new helicopters and the replacement of 39 police vehicles.
The CIP includes $1,624,000 for relocation and expansion of the Police Department
Communications Center and Traffic Office, Helipad Lot Replacement, and the installation
of street cameras to assist with traffic monitoring and investigations.
In the Fire Department, the Adopted Budget includes $1.1 million in Equipment
Replacement Fund comprising the replacement of a Fire Engine, Rescue Boat,
Command Vehicle, and Cardiac Monitors/Defibrillators. The General Fund CIP includes
$590,000 for Lifeguard and Jr. Lifeguard upgrades and signals at Murdy and Heil Fire
Stations.
The Fiscal Year 2021/22 Adopted Budget is a balanced budget. As the economy
continues to bounce back and public health guidelines become less restrictive, revenue
sources such as Sales Tax and Transient Occupancy Tax are anticipated to increase
considerably in the coming year. The Fiscal Year 2021/22 Adopted Budget includes the
continuation of Citywide restructuring measures implemented during Fiscal Year 2020/21,
restores a number of operating cuts made in response to the COVID-19 pandemic,
148
City of Huntington Beach
Management’s Discussion and Analysis
For the Year Ended June 30, 2021
includes mandated savings along with the debt service payment for the City’s recently
instituted Pension Obligation Bonds, and prioritizes improvements to the City’s facilities,
roads and parks. The Fiscal Year 2021/22 budget remains committed to improving the
quality of life for our residents, businesses, and visitors by increasing funding for core
services such as public safety, community & library service programs, and improving the
City’s infrastructure.
General Fund Revenue
General Fund revenue is projected to be $228.0 million, a $11.1 million or 5.1 percent
decrease from the Fiscal Year 2020/21 Adopted Budget resulting from projected positive
economic impacts resulting from widespread COVID-19 vaccinations, loosening public
health orders, and the re-opening of businesses for indoor dining and shopping.
Property Taxes are estimated at $93.2 million, reflecting an increase of 1.2 percent
due to the low interest rates leading to accelerated growth in assessed valuations and
Employee Retirement Override revenues being transferred to the Pension Liability
Fund and no longer being budgeted in the General Fund.
Sales Tax revenues are projected to be $44.6 million, an increase of 13.8 percent
from Fiscal Year 2020/21. Transient Occupancy Taxes are anticipated to increase
$3.8 million, or 55.1 percent. The increases in these two revenue sources is
attributable to the projected positive economic impacts resulting from widespread
COVID-19 vaccinations, loosening public health orders, and the re-opening of
businesses for indoor dining and shopping.
Licenses and Permits, estimated at $7.8 million, reflect a 5.7 percent increase, as
economic and development activity are anticipated to increase in the coming year.
Franchise Taxes are anticipated at $7.1 million, a 29.0 percent increase. Use of
Money & Property, which includes parking revenues and lease concessions, is
projected to increase $1.7 million, or 11.5 percent, due to business re-openings and
expected increases in visitors to our beach and downtown areas, especially as
international travel continues to become less restrictive.
Contacting the City’s Financial Management Team
This financial report is designed to provide our citizens, taxpayers, customers, and
investors and creditors with a general overview of the City’s finances and to show the
City’s accountability for the money it receives. If you have questions about this report,
separate reports of the City’s component units or need any additional financial
information, contact the Finance Department at 2000 Main Street, Huntington Beach,
California, 92648-2702, phone (714) 536-5630 or email tvi@surfcity-hb.org.
149
THIS PAGE INTENTIONALLY LEFT BLANK
150
THIS PAGE INTENTIONALLY LEFT BLANK
151
BASIC FINANCIAL STATEMENTS
152
ASSETS
Governmental
Activities
Business-Type
Activities Total
Cash and Investments 227,029$ 88,351$ 315,380$
Cash and Investments with Fiscal Agent 9,902 - 9,902
Receivables, Net 36,889 6,496 43,385
Advances to Successor Agency 1,363 - 1,363
Inventories - 1,442 1,442
Prepaids 1,297 - 1,297
Joint Venture 185 1,572 1,757
Subtotal 276,665 97,861 374,526
Capital Assets:
Non-Depreciable 377,379 5,689 383,068
Depreciable, Net 359,877 136,780 496,657
Total Capital Assets 737,256 142,469 879,725
Total Assets 1,013,921 240,330 1,254,251
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 390,427 25,616 416,043
Deferred Outflows Related to Other Postemployment Benefits 2,703 321 3,024
Total Deferred Outflows of Resources 393,130 25,937 419,067
LIABILITIES
Accounts Payable 9,927 9,346 19,273
Accrued Payroll 5,877 631 6,508
Unearned Revenue 15,846 - 15,846
Accrued Interest Payable 2,341 131 2,472
Deposits 760 1,491 2,251
Subtotal 34,751 11,599 46,350
Long-Term Obligations:
Long-Term Obligations Due Within One Year 30,295 1,165 31,460
Long-Term Obligations Due in More than One Year 420,459 22,405 442,864
Net Pension Liability 411,153 27,224 438,377
Net Other Postemployment Benefits Liability 2,877 343 3,220
Total Long-Term Obligations 864,784 51,137 915,921
Total Liabilities 899,535 62,736 962,271
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 15,306 1,314 16,620
Deferred Inflows Related to Other Postemployment Benefits 2,410 287 2,697
Total Deferred Inflow of Resources 17,716 1,601 19,317
NET POSITION
Net Investment in Capital Assets 699,204 142,469 841,673
Restricted for:
Debt Service 4,435 - 4,435
Capital Projects 13,927 20,332 34,259
Public Works and Community Services Projects 47,393 - 47,393
Total Restricted Net Position 65,755 20,332 86,087
Unrestricted (275,159) 39,129 (236,030)
Total Net Position 489,800$ 201,930$ 691,730$
CITY OF HUNTINGTON BEACH
STATEMENT OF NET POSITION
JUNE 30, 2021
(In Thousands)
See Notes to the Financial Statements 153
Program Revenues
Functions/Programs Expenses
Charges for
Current
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-
Type
Activities Total
Governmental Activities:
City Council 423$ 162$ -$ -$ (261)$ -$ (261)$
City Manager 11,163 4,208 33 14 (6,908) - (6,908)
City Treasurer 340 149 - - (191) - (191)
City Attorney 3,140 6 - - (3,134) - (3,134)
City Clerk 1,147 30 - - (1,117) - (1,117)
Finance 6,828 3,055 - - (3,773) - (3,773)
Community Development 19,716 8,353 2,142 964 (8,257) - (8,257)
Fire 65,960 8,877 25 - (57,058) - (57,058)
Information Services 6,230 610 - - (5,620) - (5,620)
Police 102,415 6,477 1,519 - (94,419) - (94,419)
Community Services 11,365 15,558 427 28 4,648 - 4,648
Library Services 6,181 153 401 - (5,627) - (5,627)
Public Works 40,270 6,045 1,466 9,186 (23,573) - (23,573)
Interest on Long-Term Debt 2,706 - - - (2,706) - (2,706)
Total Governmental Activities 277,884 53,683 6,013 10,192 (207,996) - (207,996)
Business-type Activities:
Water Utility 46,054 42,523 - - - (3,531) (3,531)
Sewer Service 9,284 10,828 - - - 1,544 1,544
Refuse Collection 12,936 13,014 - - - 78 78
Hazmat Service 241 266 - - - 25 25
Total Business-Type Activities 68,515 66,631 - - - (1,884) (1,884)
Total Governmental and Business
Type Activities 346,399$ 120,314$ 6,013$ 10,192$ (207,996)$ (1,884)$ (209,880)$
General Revenues:
Taxes:
Property Taxes 99,958$ -$ 99,958$
Sales Taxes 51,162 - 51,162
Utility Taxes 18,374 - 18,374
Franchise Taxes 8,040 - 8,040
Transient Occupancy Tax 9,253 - 9,253
Total Taxes 186,787 - 186,787
Other:
Use of Money and Property 4,399 261 4,660
From Other Agencies - Unrestricted 22,000 - 22,000
Total General Revenues 213,186 261 213,447
Transfers (38) 38 -
Total General Revenues and Transfers 213,148 299 213,447
Change in Net Position 5,152 (1,585) 3,567
Net Position - Beginning of Year 478,901 203,515 682,416
Cumulative Effect of Changes in Accounting Principles 5,747 - 5,747
Net Position - Beginning of Year as Restated 484,648 203,515 688,163
Net Position - End of Year 489,800$ 201,930$ 691,730$
Net (Expense) Revenue and Changes in
Net Position
CITY OF HUNTINGTON BEACH
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
See Notes to the Financial Statements 154
CITY OF HUNTINGTON BEACH
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
(In Thousands)
ASSETS General Fund
Grants Special
Revenue
LMIHAF Capital
Projects
Pension
Liability
Other
Governmental
Funds Total
Cash and Investments 86,267$ 17,434$ 2,263$ 16,762$ 70,447$ 193,173$
Cash and Investments with Fiscal Agent - 30 - 36 9,836 9,902
Taxes Receivable 13,258 - - 98 1,494 14,850
Other Receivables, Net 8,163 5,094 8,092 47 547 21,943
Advances to Successor Agency - - 1,363 - - 1,363
Prepaids 115 - - - 105 220
TOTAL ASSETS 107,803$ 22,558$ 11,718$ 16,943$ 82,429$ 241,451$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts Payable 3,803$ 862$ 3$ -$ 4,544$ 9,212$
Accrued Payroll 5,567 95 7 - 192 5,861
Unearned Revenue 1,020 14,826 - - - 15,846
Deposits Payable 760 - - - - 760
Total Liabilities 11,150 15,783 10 - 4,736 31,679
Deferred Inflows of Resources:
Unavailable Revenue 2,044 4,421 8,086 - 209 14,760
Total Deferred Inflows of Resources 2,044 4,421 8,086 - 209 14,760
Fund Balances:
Nonspendable
Prepaids 115 - - - 105 220
Restricted
Underground Utilities 364 - - - - 364
Restitution 282 - - - - 282
Donations 767 - - - - 767
Section 115 Trust 11,378 - - - - 11,378
Pollution Remediation - - - - 355 355
Debt Service - - - 16,943 4,435 21,378
Highways, Streets and Transportation - - - - 10,443 10,443
Low Income Housing - - 3,622 - 2,698 6,320
Air Quality - - - - 1,518 1,518
Other Capital Projects - - - - 25,775 25,775
Other Purposes 770 2,354 - - 2,018 5,142
Committed
Economic Uncertainties 25,381 - - - - 25,381
Parks - - - - 1,389 1,389
Other Capital Projects 184 - - - 21,852 22,036
Other Purposes - - - - 3,616 3,616
Assigned
Litigation Reserves 3,650 - - - - 3,650
AES Reserve 4,900 - - - - 4,900
Capital Improvement Reserve 8,230 - - - 3,280 11,510
Equipment Replacement 8,295 - - - - 8,295
General Plan Maintenance 791 - - - - 791
General Liability Plan Migration 2,801 - - - - 2,801
Pension Rate Stabilization 741 - - - - 741
Cityview Replacement 1,028 - - - - 1,028
Section 115 Trust 1,500 - - - - 1,500
Triple Flip 749 - - - - 749
Strategic Initiatives 16,536 - - - - 16,536
Housing Agreement 174 - - - - 174
Year-End Fair Value 1,983 - - - - 1,983
Other Purposes 3,990 - - - - 3,990
TOTAL FUND BALANCES 94,609 2,354 3,622 16,943 77,484 195,012
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES 107,803$ 22,558$ 11,718$ 16,943$ 82,429$ 241,451$
See Notes to the Financial Statements 155
Amounts reported for governmental activities in the statement of net position are
different because:
Total Fund Balances Governmental Funds 195,012$
Net capital assets used in governmental activities are not current financial resources and,
therefore, are not reported in the governmental funds. Amounts exclude net Capital Assets
of the Internal Service Funds.
Capital Assets 1,113,591
Accumulated Depreciation (381,639)
Total Capital Assets 731,952 731,952
Joint Venture 185
Internal Services funds are used by management to charge the cost of various city
activities to individual governmental and business-like funds. The assets and
liabilities of the Internal Service fund must be added to the Statement of Net Position.(8,441)
Revenues that are measurable but not available are not recognized as revenue in
governmental funds. Such amounts are recorded as unavailable revenue under the
modified accrual basis of accounting.14,760
Deferred outflows related to pensions 389,193
Deferred outflows related to Other Postemployment Benefits (OPEB)2,688
Governmental funds report all pension contributions as expenditures; however, in the
statement of net position, the excess of the total pension liability over the plan
fiduciary net position is reported as a net pension liability.(409,844)
Deferred inflows related to pensions (15,245)
Deferred inflows related to Other Postemployment Benefits (OPEB)(2,397)
Governmental funds report all OPEB contributions as expenditures; however, in the
statement of net position, the excess of the total OPEB liability over the plan fiduciary
net position is reported as a net pension liability.(2,861)
Other long-term liabilities are not due in the current period and, therefore, are not recorded in
the governmental funds.
Accrued Interest Payable (2,337)
Long-term Liabilities, including bonds and certificates of participation payable, are not due and
payable in the current period and therefore are not reported in the governmental funds.
Amounts exclude Long-Term Obligation of the Internal Service Fund.
Long-Term Obligations Due in One Year (20,138)
Long-Term Obligations Due in More than One Year (382,727)
Net Position of Governmental Activities 489,800$
(In Thousands)
CITY OF HUNTINGTON BEACH
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See Notes to the Financial Statements 156
REVENUES
General
Fund
Grants Special
Revenue
LMIHAF
Capital
Projects
Pension
Liability
Other
Governmental
Funds Total
Property Taxes 91,708$ -$ -$ 8,250$ -$ 99,958$
Sales Taxes 47,676 - - - 3,486 51,162
Utility Taxes 18,374 - - - - 18,374
Other Taxes 18,428 - - - 7,317 25,745
Licenses and Permits 7,805 - - - 408 8,213
Fines and Forfeitures 4,619 - - - - 4,619
From Use of Money and Property 16,196 222 964 300 1,481 19,163
Intergovernmental 9,967 18,075 - - 1,794 29,836
Charges for Current Services 21,878 - - 1,493 2,018 25,389
Other 2,001 - - - 38 2,039
Total Revenues 238,652 18,297 964 10,043 16,542 284,498
EXPENDITURES
Current:
City Council 397 - - 646 - 1,043
City Manager 3,867 5,453 - 6,284 372 15,976
City Treasurer 319 - - 518 - 837
City Attorney 2,938 - - 4,776 - 7,714
City Clerk 1,068 8 - 1,734 - 2,810
Finance 6,025 18 - 9,788 342 16,173
Community Development 8,920 8,450 6,421 14,492 929 39,212
Fire 57,002 1,880 - 89,773 1,071 149,726
Information Services 6,991 64 - 11,358 682 19,095
Police 89,440 2,141 - 140,857 - 232,438
Community Services 7,708 553 - 12,523 4,280 25,064
Library Services 5,150 233 - 8,367 349 14,099
Public Works 24,116 1,569 - 39,177 23,145 88,007
Debt Service:
Principal 1,723 - - - 2,260 3,983
Interest 182 - - - 755 937
Total Expenditures 215,846 20,369 6,421 340,293 34,185 617,114
Excess (Deficiency) of Revenues Over
(Under) Expenditures 22,806 (2,072) (5,457) (330,250) (17,643) (332,616)
OTHER FINANCING SOURCES (USES)
Transfers In 548 1,271 - - 11,239 13,058
Issuance of Long-Term Debt - - - (453) - (453)
Issuance Premium - - - - 1,743 1,743
Issuance Discount - - - (649) - (649)
Proceeds of Long Term Debt - - - 340,435 32,028 372,463
Payments to Escrow - - - - (28,256) (28,256)
Transfers Out (10,868) (1,406) (406) - (416) (13,096)
Total Other Financing Sources (Uses) (10,320) (135) (406) 339,333 16,338 344,810
Net Change In Fund Balances 12,486 (2,207) (5,863) 9,083 (1,305) 12,194
Fund Balances - Beginning of Year 80,088 4,561 9,485 7,860 75,077 177,071
Cumulative Effect of Changes in
Accounting Principles 2,035 - - - 3,712 5,747
Fund Balances - Beginning of Year as Restated 82,123 4,561 9,485 7,860 78,789 182,818
Fund Balances - End of Year 94,609$ 2,354$ 3,622$ 16,943$ 77,484$ 195,012$
(In Thousands)
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
See Notes to the Financial Statements 157
Amounts reported for governmental activities in the
Statement of Activities are different because:
Net Changes in Fund Balances - Total Governmental funds 12,194$
Depreciable Assets Purchased 29,506
Non-Depreciable Assets Purchased 11,575
Non-Depreciable Assets Disposition (3,780)
Capital Asset Depreciation (16,050)
Joint Venture (72)
Current Year Grant and Other Revenue Accrual 3,010
Prior Year Grant and Other Revenue Accrual (2,922)
(1,064)
Pension expenses reported in the statement of activities includes the change in the
net pension liability and related changes in pension amounts for deferred outflows and
deferred inflows of resources. (9,994)
Governmental funds report expenditures for retirement contributions whereas these
amounts are reported as deferred outflows of resources on the Statement of Net
Position. 339,296
454
Internal service funds are used by management to charge the costs of certain
activities, such as self insurance workers' compensation charges. The net
revenue of this internal service fund is reported as governmental activities. (13,168)
Current Year Interest Accrual (2,337)
Prior Year Interest Accrual 568
31,170
(372,463)
(771)
Change in Net Position of Governmental Activities 5,152$
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
CITY OF HUNTINGTON BEACH
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
Accrual of Revenues - Certain revenues in the Statement of Activities do not
meet the "availability" criteria for revenue recognition in the governmental funds
and are not reported in the governmental funds as revenue.
Capital Expenditures - Governmental funds report capital outlays as
expenditures. However, in the Statement of Activities, the cost of these assets
are allocated over their estimated useful lives and reported as depreciation
expense.
Liabilities not liquidated with current resources - Some expenses reported in the
Statement of Activities do not require the use of current financial resources and,
therefore, are not reported as expenditures in governmental funds.
The issuance of long-term debt provides current financial resources to governmental
funds.
Repayment of long-term debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position.
Other Postemployment Benefits Payments - Expenses reported in the Statement of
Activities do not require the use of current financial resources and therefore are not
reported as expenditures in governmental funds (expenses).
Repayments on long-term receivables provide current financial resources to
governmental funds, while loans provided consume the current financial
resources of governmental funds. These transactions, however, have no effect
on net position.
The repayment of some expenses such as compensated absences, claims, and
pension expenses, reported in the Statement of Activities, do not require the use of
current resources, and therefore are not reported as expenditures in the governmental
funds.
See Notes to the Financial Statements 158
Governmental
Activities
Water
Fund
Sewer
Service Fund
Refuse
Fund
Hazmat
Service Fund Total
Internal Service
Funds
ASSETS
Current Assets:
Cash and Investments 31,348$ 35,763$ 420$ 488$ 68,019$ 33,856$
Restricted Cash and Investments 20,332 - - - 20,332 -
Other Receivables, Net 2,575 579 606 9 3,769 96
Prepaids - - - - - 1,077
Joint Ventures 1,572 - - - 1,572 -
Inventories 1,442 - - - 1,442 -
Unbilled Receivables 1,727 441 559 - 2,727 -
Total Current Assets 58,996 36,783 1,585 497 97,861 35,029
Capital Assets:
Land 3,907 - - - 3,907 -
Buildings and Improvements 57,298 42,784 - - 100,082 -
Machinery and Equipment 16,797 4,584 215 - 21,596 6,831
Infrastructure 104,496 44,808 - - 149,304 -
Construction in Progress 294 1,488 - - 1,782 -
Less Accumulated Depreciation (91,545) (42,576) (81) - (134,202) (1,527)
Total Capital Assets 91,247 51,088 134 - 142,469 5,304
Total Assets 150,243 87,871 1,719 497 240,330 40,333
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 17,925 6,705 600 386 25,616 1,234
Deferred Outflows Related to Other Postemployment Benefits 231 79 8 3 321 15
Total Deferred Outflows of Resources 18,156 6,784 608 389 25,937 1,249
Total Assets and Deferred Outflows of Resources 168,399$ 94,655$ 2,327$ 886$ 266,267$ 41,582$
LIABILITIES
Current Liabilities:
Accounts Payable 7,630$ 693$ 1,023$ -$ 9,346$ 715$
Accrued Payroll 433 174 14 10 631 16
Deposits Payable 1,491 - - - 1,491 -
Interest Payable 91 35 3 2 131 4
Current Portion of Claims Payable - - - - - 10,108
Current Portion of Compensated Absences 274 103 10 2 389 12
Total Current Liabilities 9,919 1,005 1,050 14 11,988 10,855
Non-Current Liabilities:
Compensated Absences 731 275 24 7 1,037 32
Long-Term Obligations Due Within One Year 543 203 18 12 776 37
Long-Term Obligations Due in More than One Year 14,953 5,593 501 321 21,368 1,029
Net Pension Liability 19,053 7,126 639 406 27,224 1,309
Net Other Postemployment Benefits Liability 246 84 9 4 343 16
Claims Payable - - - - - 36,671
Total Non-Current Liabilities 35,526 13,281 1,191 750 50,748 39,094
Total Liabilities 45,445 14,286 2,241 764 62,736 49,949
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 923 345 31 15 1,314 61
Deferred Inflows Related to Other Postemployment Benefits 206 71 7 3 287 13
Total Deferred Inflows of Resources 1,129 416 38 18 1,601 74
NET POSITION
Investment in Capital Assets 91,247 51,088 134 - 142,469 5,304
Restricted for:
Capital Projects 20,332 - - - 20,332 -
Unrestricted 10,246 28,865 (86) 104 39,129 (13,745)
Total Net Position 121,825 79,953 48 104 201,930 (8,441)
Total Liabilities, Deferred Inflows
of Resources, and Net Position 168,399$ 94,655$ 2,327$ 886$ 266,267$ 41,582$
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
CITY OF HUNTINGTON BEACH
Business-Type Activities - Enterprise Funds
(In Thousands)
June 30, 2021
See Notes to the Financial Statements 159
Governmental
Activities
Water
Fund
Sewer
Service Fund
Refuse
Fund
Hazmat
Service Fund Total
Internal Service
Funds
OPERATING REVENUES
Sales 38,995$ -$ -$ -$ 38,995$ -$
Fees and Charges for Service - 10,814 12,968 266 24,048 14,130
Other 3,528 14 46 - 3,588 73
Total Operating Revenues 42,523 10,828 13,014 266 66,631 14,203
OPERATING EXPENSES
Water Purchases 17,144 - - - 17,144 -
Supplies and Operations 9,664 7,096 12,911 239 29,910 4,486
Engineering 3,013 - - - 3,013 -
Production and Distribution 8,339 - - - 8,339 -
Maintenance 561 - - - 561 -
Water Meters 2,178 - - - 2,178 -
Water Quality 834 - - - 834 -
Water Use Efficiency 244 - - - 244 -
Claims and Judgments - - - - - 22,073
Depreciation 3,986 2,153 22 - 6,161 714
Total Operating Expenses 45,963 9,249 12,933 239 68,384 27,273
Operating Income (Loss) (3,440) 1,579 81 27 (1,753) (13,070)
NON-OPERATING REVENUES (EXPENSES)
Investment Income (Loss) 123 134 2 2 261 (90)
Interest Expense (91) (35) (3) (2) (131) (4)
Debt Service - - - - - (4)
Total Non-Operating Revenues (Expenses) 32 99 (1) - 130 (98)
Income (Loss) Before Transfers (3,408) 1,678 80 27 (1,623) (13,168)
TRANSFERS
Transfers In - - 51 - 51 -
Transfers Out - - - (13) (13) -
Total Transfers - - 51 (13) 38 -
Change in Net Position (3,408) 1,678 131 14 (1,585) (13,168)
Net Position - Beginning of Year 125,233 78,275 (83) 90 203,515 4,727
Net Position - End of Year 121,825$ 79,953$ 48$ 104$ 201,930$ (8,441)$
Business-Type Activities - Enterprise Funds
(In Thousands)
FOR THE YEAR ENDED JUNE 30, 2021
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
CITY OF HUNTINGTON BEACH
See Notes to the Financial Statements 160
Governmental
Activities
Water
Fund
Sewer
Service Fund
Refuse
Fund
Hazmat
Service Fund Total
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 41,916$ 10,797$ 12,802$ 265$ 65,780$ 14,241$
Cash Paid to Employees for Services (24,920) (9,342) (844) (573) (35,679) (1,561)
Cash Paid to Suppliers of Goods and Services (32,327) (3,565) (12,593) (3) (48,488) (16,762)
Net Cash and Investment Provided by
Operating Activities (15,331) (2,110) (635) (311) (18,387) (4,082)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers In - - 51 - 51 -
Transfers Out - - - (13) (13) -
Debt Service - - - - - (4)
Proceeds from Issuance of Long-Term Debt 15,496 5,796 519 333 22,144 1,066
Net Cash and Investments Provided (Used) by
Noncapital Financing Activities 15,496 5,796 570 320 22,182 1,062
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of Capital Assets (3,373) (2,472) - - (5,845) (1,960)
Net Cash and Investments Used by
Capital and Related Financing Activities (3,373) (2,472) - - (5,845) (1,960)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income (Loss) 123 134 2 2 261 (90)
Net Cash and Investments Provided by
Investing Activities 123 134 2 2 261 (90)
Net Increase (Decrease) in Cash and Investments (3,085) 1,348 (63) 11 (1,789) (5,070)
Cash and Investments - Beginning of Year 54,765 34,415 483 477 90,140 38,926
Cash and Investments - End of Year 51,680$ 35,763$ 420$ 488$ 88,351$ 33,856$
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH AND INVESTMENTS
PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) (3,440)$ 1,579$ 81$ 27$ (1,753)$ (13,070)$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash and Investments
Provided (Used) by Operating Activities
Depreciation 3,986 2,153 22 - 6,161 714
(Increase) Decrease in Other Receivables, Net (446) (66) (223) (1) (736) 38
Decrease in Unbilled Receivables 141 35 11 - 187 -
Decrease (Increase) in Prepaids - - - - - (477)
(Increase) in Joint Ventures (254) - - - (254) -
(Increase) in Inventory (9) - - - (9) -
Increase (Decrease) in Accounts Payable 692 29 14 - 735 177
Increase (Decrease) in Accrued Payroll 63 17 3 - 83 (7)
Increase (Decrease) in Deposits Payable (302) - - - (302) -
Increase (Decrease) in Claims Payable - - - - - 9,624
Increase (Decrease) in Compensated Absences (150) (18) (26) 5 (189) -
(Increase) Decrease in Deferred Pension Outflow (15,878) (5,939) (532) (342) (22,691) (1,093)
Increase (Decrease) in Deferred Pension Inflow 501 187 17 6 711 32
Increase (Decrease) in Net Pension Liability (196) (73) - (6) (275) (19)
Decrease in Deferred Other Postemployment Benefits Outflow 12 4 - - 16 1
(Decrease) in Deferred Other Postemployment Benefits Inflow (18) (6) (1) - (25) (1)
(Decrease) in Net Other Postemployment Benefits Liability (33) (12) (1) - (46) (1)
Net Cash and Investments Provided
by Operating Activities (15,331)$ (2,110)$ (635)$ (311)$ (18,387)$ (4,082)$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
There were no noncash investing, capital, or financing activities during the year ended June 30, 2021.
Business-Type Activities - Enterprise Funds
CITY OF HUNTINGTON BEACH
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
See Notes to the Financial Statements 161
ASSETS Custodial Funds
Pension Trust Fund -
Retirement
Supplemental Fund
Huntington Beach
Redevelopment
Successor Agency
Private Purpose Trust
Cash and Investments 4,490$ 3$ 6,647$
Cash and Investments with Fiscal Agent 3,265 - 2,582
Mutual Funds - 69,928 -
Money Market Funds - 433 -
Accounts Receivable, Net 699 - 20
Total Assets 8,454 70,364 9,249
LIABILITIES
Accounts Payable 1,928 - 427
Accrued Payroll - - 6
Advances from City of Huntington Beach - - 1,363
Long-Term Obligations:
Long-Term Obligations Due Within One Year - - 4,171
Long-Term Obligations Due in More than One Year - - 25,550
Total Long-Term Obligations - - 29,721
Total Liabilities 1,928 - 31,517
NET POSITION
Restricted for Pension Benefits - 70,364 -
Held in Trust For Other Purposes - - (22,268)
Restricted for Individuals and Organizations 6,526 - -
Total Net Position 6,526$ 70,364$ (22,268)$
ADDITIONS Custodial Funds
Pension Trust Fund -
Retirement
Supplemental Fund
Huntington Beach
Redevelopment
Successor Agency
Private Purpose Trust
Employer Contributions -$ 933$ -$
Special Assessments or Special Taxes
Collected from Property Owners 1,512 - 5,201
Business Improvement District Taxes 4,093 - -
Parking Assessments 2,442 - -
Total Additions Before Investment Income 8,047 933 5,201
Investment Income:
Investment Income 13 15,846 10
Less Investment Expense - (129) -
Net Investment Income 13 15,717 10
Total Additions 8,060 16,650 5,211
DEDUCTIONS
Benefits - 5,494 -
Administrative Costs 51 314 -
Payments to other Organizations 4,748 - -
Economic Development - - 223
Interest and Fiscal Agency Expenses 1,511 - 1,822
Principal 1,810 - -
Total Deductions 8,120 5,808 2,045
Change in Net Position (60) 10,842 3,166
Net Position - Beginning of Year - 59,522 (25,434)
Cumulative Effect of Changes in
Accounting Principles 6,586 - -
Net Position - Beginning of Year as Restated 6,586 59,522 (25,434)
Net Position - End of Year 6,526$ 70,364$ (22,268)$
STATEMENT OF CHANGES IN FIDUCIARY FUND NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
CITY OF HUNTINGTON BEACH
STATEMENT OF FIDUCIARY FUND NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
(In Thousands)
CITY OF HUNTINGTON BEACH
See Notes to the Financial Statements 162
THIS PAGE INTENTIONALLY LEFT BLANK
163
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
Footnote
Number Description Page
1. Summary of Significant Accounting Policies ............................ 37-53
2. Cash and Investments ................................................................... 54-61
3. Other Receivables .......................................................................... 61-62
4. Unearned Revenue ........................................................................ 63
5. Unavailable Revenue .................................................................... 63
6. Retirement Plan – Normal ............................................................ 64-74
7. Retirement Plan – Supplemental ................................................ 74-81
8. Other Post Employment Benefits ............................................... 82-88
9. Risk Management ................................................................ 89-90
10. Interfund Transactions .......................................................................... 91-92
11. Long-Term Obligations .................................................................. 93-105
12. Capital Assets ................................................................................. 106-108
13. Investment in Joint Ventures ....................................................... 108
14. Related Party Transaction ............................................................ 108
15. Successor Agency Trust for Assets of the Former
Redevelopment Agency of the City of Huntington Beach ..... 109-116
16. Commitments and Contingencies ............................................... 116-120
17. Other Information .......................................................................... 120
18. Subsequent Events ....................................................................... 120-122
19. Prior Period Adjustments ............................................................. 122-123
164
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Reporting Entity
The City of Huntington Beach is the primary government. It was incorporated in
1909 as a charter, full-service city. The form of government is Council-Manager.
Component units are legally separate organizations for which the City Council is
financially accountable, or organizations that if excluded from the accompanying
financial statements, would make them misleading. The component units described
below are blended (presented as if they are part of the primary government) or
presented as a fiduciary trust fund with the primary government for financial
reporting purposes. The criteria used in determining the scope of the reporting entity
are based on the provisions of GASB Statement 14, The Financial Reporting Entity,
as amended by GASB Statement 39, Determining Whether Certain Organizations
Are Component Units, and GASB Statement 61, The Financial Reporting Entity:
Omnibus an amendment of GASB Statements No. 14 and No. 34. A legally
separate, tax exempt organization should be reported as a blended component unit
of the City if all of the following criteria are met:
1. The governing board is substantively the same as the primary government and
there is a financial benefit or burden relationship between the primary
government and the component unit;
2. The component unit provides services entirely, or almost entirely, to the primary
government or otherwise exclusively, or almost exclusively, benefits the primary
government even though it does not provide services directly to it; and
3. The component unit’s total debt outstanding, including leases, is expected to be
repaid entirely or almost entirely with the resources of the primary government.
Based on the application of the criteria listed above, the following component units
have been included.
Huntington Beach Housing Authority
The Housing Authority (the Authority) was established in March 2011 pursuant to
Housing Authority Laws of California to provide rental assistance programs to low-
income families and senior citizens, and to operate a Housing Rehabilitation Loan
Program and other approved programs. The Authority is governed by a commission
of seven members comprised of the City Council, which appoints management and
has full accountability for the Authority's fiscal affairs. The Authority's financial data
and transactions are included within the capital projects Low and Moderate Income
Housing Asset Fund (LMIHAF). On January 9, 2012, the City adopted a resolution
designating the Housing Authority of the City of Huntington Beach to serve as the
Housing Successor Agency. The Housing Successor Agency's financial data and
transactions are included within the LMIHAF Capital Projects Fund. There is no
separate Component Unit Financial Report (CUFR) prepared for the Authority.
165
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Huntington Beach Public Financing Authority (Public Financing Authority) –
This Corporation was formed in March 1988 to issue debt to finance public
improvements and other capital purchases for the City and the former
Redevelopment Agency. The Public Financing Authority’s governing body is the
City Council, which also adopts its annual budget. The Public Financing Authority
is financially dependent on the City. There are no separately issued financial
statements available for the Public Financing Authority.
The City of Huntington Beach Supplemental Retirement Plan and Trust
(Supplemental Retirement Plan and Trust) – The Trust was formed to provide a
supplemental retirement plan for all employees hired prior to 1997 (exact dates
differed for various associations). The governing board of the Supplemental
Retirement Plan consists of the City Treasurer, Chief Financial Officer, and the City
Manager (or designee). The Retirement Board is responsible for supervising all
investments, resolving benefit disputes, and ensuring that contributions are made
in order to pay the required benefits. There are no separate financial statements for
this plan and trust.
b. Government-wide Financial Statements
The government-wide financial statements include a Statement of Net Position and
a Statement of Activities. These statements present summaries of Governmental
and Business-Type Activities for the City accompanied by a total column. Fiduciary
activities of the City are not included in these statements. These statements are
presented on an “economic resources” measurement focus and the accrual basis
of accounting. Accordingly, all of the City’s assets, deferred inflows/outflows of
resources, and liabilities, 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.
166
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Statement of Activities demonstrates the degree to which the direct expenses
of a given function or segment is offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function or segment. Indirect
expenses are allocated to the various functions based on a proportionate use of
services. The types of transactions reported as program revenues for the City are
reported in three categories: 1) charges for current services; 2) operating grants
and contributions; and, 3) capital grants and contributions. Taxes and other items
not properly included among program revenues are reported as general revenues.
As a general rule, the effects of interfund activity have been eliminated from the
government-wide financial statements.
When both restricted and unrestricted resources are available for use, it is the
government’s policy to use restricted resources first, then unrestricted resources as
they are needed.
Financial Statement Classification
In the government-wide financial statements, net position is classified in the
following categories:
Net Investment in Capital Assets – This category groups all capital assets,
including infrastructure, into one component of net position. Accumulated
depreciation and the outstanding balances of debt that are attributable to the
acquisition, construction, or improvement of these assets reduce this category.
Restricted Net Position – This category presents restrictions imposed by creditors,
grantors, contributors or laws or regulations of other governments and restrictions
imposed by law through constitutional provisions or enabling legislation. The
government-wide Statement of Net Position reports $65,755,000 of governmental
activities restricted net position, of which $36,839,000 is restricted by enabling
legislation. The government-wide Statement of Net Position reports $20,332,000 of
business-type activities restricted net position, of which all is restricted by enabling
legislation. This category presents restrictions placed on the categories of Capital
Projects, Debt Service, and Specific Projects and Programs.
167
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Unrestricted Net Position – This category represents the net position of the City,
not restricted for any project or other purpose. The government-wide Statement of
Net Position reports a deficit unrestricted net position of $275,159,000 of
governmental activities unrestricted net position, which is largely a result of the
recent implementation of GASB Statement Nos. 68 and 75 that requires the City to
report Net Pension Liabilities and Net Other Post-Employment Benefits (OPEB)
Liability. The City’s Net Pension Liability at June 30, 2021 is $438,377,000 and Net
OPEB Liability is $3,220,000, respectively, of which $411,153,000 and $2,877,000,
respectively, is payable from Governmental Activities. The government-wide
Statement of Net Position reports $39,129,000 of business-type activities
unrestricted net position.
c. Fund Financial Statements
Separate fund financial statements are prepared for governmental funds,
proprietary funds, and fiduciary funds. Major individual governmental and enterprise
funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement
Presentation
All governmental funds are accounted for on a spending or "current financial
resources" measurement focus and the modified accrual basis of accounting. Only
current assets, current liabilities, and deferred inflows are included on the Balance
Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances
presents increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets. Under the modified
accrual basis of accounting, revenues are recognized in the accounting period in
which they become both measurable and available to finance expenditures of the
current period.
Revenues are recorded when received in cash, except that revenues subject to
accrual (generally 60 days after year-end) are recognized when due. The primary
revenue sources, which have been treated as susceptible to accrual by the City,
are property tax, sales tax, use of money and property, intergovernmental revenues,
charges for current services, and other taxes. Expenditures are recorded in the
accounting period in which the related fund liability is incurred. However, debt
service expenditures as well as expenditures related to compensated absences and
claims are recorded only when payment is due.
168
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental Funds Financial Statements
Governmental Funds Financial Statements include a Balance Sheet and a
Statement of Revenues, Expenditures, and Changes in Fund Balances for all major
governmental funds and non-major funds aggregated. Accompanying schedules
are presented to reconcile and explain the differences in fund balances and
changes in fund balances as presented in these statements to the net position and
changes in net position presented in the government-wide financial statements.
The City presents all major funds that meet those qualifications.
The City’s Governmental Fund Balances are comprised of the following
components:
Nonspendable fund balance includes amounts that are not in spendable form
and typically includes inventories, prepaid items, and other items that by
definition cannot be appropriated.
The restricted fund balance category includes amounts that can be spent only
for the specific purposes stipulated by constitution, external resource providers,
or through enabling legislation.
The committed fund balance classification includes amounts that can be used
only for the specific purposes determined by a formal action of the City Council.
The City Council has authority to establish, modify, or rescind a fund balance
commitment by formal action as specified by the City’s Fund Balance Policy.
Commitments to fund balance are made through adoption of a resolution by City
Council.
Amounts in the assigned fund balance classification are intended to be used by
the City for specific purposes but do not meet the criteria to be classified as
restricted or committed. The City Manager or designee has the authority to
establish, modify, or rescind a fund balance assignment as specified by the
City’s Fund Balance Policy.
Unassigned fund balance is the residual classification for the City’s General
Fund and includes all spendable amounts not contained in the other
classifications. Unassigned fund balance in other governmental funds is limited
to any negative residual fund balance after fund balance has been classified as
restricted, committed, or assigned.
169
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In the government-wide statements, the City considers restricted funds to be spent
first then unrestricted amounts when expenditures are incurred for purposes for
which both restricted and unrestricted fund balance is available. In the
governmental fund statements, when expenditures are incurred, the City uses the
most restrictive funds first. The City would use the appropriate funds in the following
order: committed, assigned, and lastly unassigned amounts.
The City establishes encumbrances to record the amount of purchase orders,
contracts, and other obligations, which have not yet been fulfilled, cancelled, or
discharged. Encumbrances outstanding at year-end are recorded as part of
restricted or assigned fund balance.
Encumbrances outstanding as of June 30, 2021, by major fund (in thousands):
Economic Uncertainties Reserve
The City Council established an Economic Uncertainties Reserve in the General
Fund through a resolution with a goal to commit the value of two months of the
General Fund expenditure adopted budget amount. Appropriations from the
Economic Uncertainties Reserve commitments can only be made by formal City
Council action. Generally, appropriations and access to these funds will be reserved
for emergency situations. Examples of such emergencies include, but are not
limited to:
An unplanned, major event such as catastrophic disaster requiring expenditures
over 5% of the General Fund adopted budget;
Budgeted revenue in excess of $1 million taken by another government entity;
Drop in projected/actual revenue of more than 5% of the General Fund adopted
revenue budget; and,
Should the Economic Uncertainties Reserve be used, and its level falls below
the minimum amount of two months of General Fund expenditures adopted
budget, the goal is to replenish the fund within three fiscal years.
General Fund 3,940$
Grants Special Revenue 1,782
LMIHAF Capital Projects 12
Other Governmental Funds 19,067
Total Encumbrance All Funds 24,801$
170
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary Fund Financial Statements
The City’s enterprise and internal service funds are proprietary funds. Proprietary
Fund Financial Statements include a Statement of Net Position, a Statement of
Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash
Flows for each major proprietary fund.
Proprietary funds are accounted for using the "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all assets, deferred
inflows/outflows, and liabilities (whether current or non-current) are included on the
Statement of Net Position. The Statement of Revenues, Expenses, and Changes
in Fund Net Position present 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.
Operating revenues in the proprietary funds are those revenues that are generated
from the primary operations of the fund. All other revenues are reported as non-
operating revenues. Operating expenses are those expenses that are essential to
the primary operations of the fund. All other expenses are reported as non-operating
expenses.
The internal service funds, which provide services to the other funds of the City, are
presented in a single column in the proprietary funds financial statements. Because
the principal users of the internal services funds are the City’s governmental
activities, the assets and liabilities of the internal service funds are consolidated into
the governmental activities column of the government-wide Statement of Net
Position. The costs of the internal service fund services are spread to the
appropriate function or program on the government-wide Statement of Activities and
the revenues and expenses within the internal service funds are eliminated from the
government-wide financial statements to avoid any doubling effect of these
revenues and expenses.
171
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fiduciary Funds Financial Statements
Fiduciary Funds Financial Statements include a Statement of Net Position and a
Statement of Changes in Net Position for Custodial and Trust Funds. The City's
fiduciary funds include Custodial and Trust Funds. Custodial Funds report fiduciary
activities that are not held in a trust or equivalent arrangement that meets specific
criteria. The Custodial funds present results of operations and include net position.
Custodial funds are accounted for on the accrual basis of accounting. Trust Funds
present results of operations and include net position. The Retirement
Supplemental Trust Fund accounts for the activities of the Supplemental Retirement
Plan for all employees hired prior to 1997, which accumulates resources for pension
benefits to qualified employees. Contributions are made to the Supplemental Plan
based on the City’s policy to fund the required contributions as determined by the
Plan’s actuary and are recognized when they are made. The Retiree Medical
Insurance Trust Fund accounts for the activities of the City’s Other Post-
Employment Benefits plans, which provide postemployment medical insurance to
retirees.
The Huntington Beach Redevelopment Successor Agency Private Purpose Trust
Fund accounts for the Successor Agency for the former Redevelopment Agency
pursuant to Assembly Bill X1 26. Fiduciary funds are not presented in the
government-wide financial statements because these funds do not represent net
position available to the City.
The City reports the following major funds:
Governmental Funds
General Fund – accounts for activity not required to be accounted for in another
fund.
Grants Special Revenue – accounts for grant revenues received from federal,
state, and local agencies restricted for related project expenditures.
LMIHAF Capital Projects – accounts for the activity related to the development of
affordable housing.
Pension Liability Debt Service – accounts for the City’s contribution to its pension
plan obligations, as provided by the voter-approved property tax override and other
sources of revenue, including the allocable share from Enterprise Funds and Other
Governmental Funds.
Proprietary Funds
Water Fund – used to account for water sales to customers.
Sewer Service Fund – accounts for user fees charged to residents and businesses
for sewer service.
172
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Refuse Fund – used to account for activities related to refuse collection and
disposal.
Hazmat Service Fund – accounts for user fees charged for the City’s hazardous
waste material program.
The City’s fund structure also includes the following fund types:
Special Revenue Funds are used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified
purposes other than debt service or capital projects.
Debt Service Funds are used to account for and report financial resources that are
restricted, committed, or assigned to expenditure for principal and interest.
Capital Projects Funds are used to account for and report financial resources that
are restricted, committed, or assigned to expenditure for capital outlays, including
the acquisition or construction of capital facilities and other capital assets.
Internal Service Funds
Self Insurance Workers’ Comp Fund – accounts for the City’s self insurance
workers’ compensation program in an internal service fund.
Self Insurance General Liability Fund – accounts for the City’s self insurance
general liability program in an internal service fund.
Equipment Replacement Fund – accounts for the City’s equipment replacement
needs in an internal service fund.
Fiduciary Funds
Custodial Funds – are used to account for debt service activities related to the
Parking Structure – Bella Terra and Community Facilities District conduit debt
issues, in which the City acts as an agent, not as a principal. The Business
Improvement District fund is used to account for taxes received and held until
disbursement.
Pension Trust Fund – Retirement Supplemental Fund - accounts for the City’s
supplemental retirement plan.
Huntington Beach Redevelopment Successor Agency Private Purpose Trust
Fund – accounts for the Successor Agency of the former Redevelopment Agency
in accordance with the State’s Dissolution Act.
173
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
d. Cash and Investments
The City pools cash resources of its various funds to facilitate cash management.
Cash in excess of daily needs is invested and reported as investments. It is the
City’s intent to hold investments until maturity. However, the City may, in response
to market conditions, sell investments prior to maturity in order to improve the
quality, liquidity, or yield of the portfolio. Interest earnings are apportioned among
funds based on month-end cash and investment balances. The City’s cash and
cash equivalents are considered to be cash on hand, demand deposits, and highly
liquid investments, such as money market funds, and any investment with a maturity
of 90 days or less at the time of purchase.
For financial reporting purposes, investments are adjusted to their fair value
whenever the difference between fair value and the carrying amount is material.
Changes in fair value that occur during the fiscal year are recognized as
investments income reported for that fiscal year. Investment income includes
interest earnings, changes in fair value and any gains or losses realized upon the
liquidation or sale of investments.
The City participates in the Local Agency Investment Fund (LAIF), an investment
pool managed by the State Treasurer of the State of California. LAIF has invested
a portion of the pool funds in structured notes and asset-backed securities. LAIF’s
investments are subject to credit risk. In addition, these structured notes and asset-
backed securities are subject to interest rate risk as a result of changes in interest
rates. In June 2020, the City Council adopted a resolution authorizing the deposit
and investment of excess funds in the Orange County Investment Pool (OCIP). The
investments in OCIP are managed by the County Treasurer. The City’s investment
policy is further discussed in Note 2 on page 54.
The City pools all non-restricted cash for investment purchases and allocates
interest income to the funds based on month-end cash balances. Funds that have
restricted cash record interest income in the respective fund.
174
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
e. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure, are
reported in the applicable governmental or business-type activities columns in the
government-wide financial statements and in the proprietary funds financial
statements. Capital assets have an acquisition cost of $50,000 or greater ($100,000
for infrastructure) and a useful life of one year or more.
The City records all purchased capital assets at historical cost (where historical
records are available) and at estimated historical cost where no historical records
exist. Capital assets acquired from gifts or contributions are recorded at acquisition
value at the time received, or in the case of infrastructure assets, at City Council
acceptance date. Capital assets acquired through annexation are recorded at net
book value.
In the government-wide and proprietary funds financial statements, depreciation is
recorded on the straight-line method over the estimated useful life of the assets as
shown below and charged to the respective activity or fund. No depreciation is
recorded in the governmental funds of the fund financial statements.
Buildings 20 to 50 years
Machinery and Equipment 5 to 30 years
Infrastructure 50 Years
f. Unearned Revenue
In the government-wide and the fund-level financial statements, unearned revenues
are those where the asset recognition (availability criteria) has been met, but the
revenue recognition criteria have not been met.
175
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow
of resources (expense/expenditure) until then. The City reports deferred outflows
related to pensions and OPEB which are the result of the implementation of GASB
Statement Nos. 68 and 75.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that
applies to a future periods and so will not be recognized as an inflow of resources
(revenue) until that time. The City reported the following in this category:
1. Unavailable revenues (which include revenues, notes, and long-term
receivables) measured under the modified accrual basis of accounting reported
in governmental funds. These amounts are deferred and will be recognized as
an inflow of resources in the period that the amounts become available.
2. Changes in the net pension liability not included in pension expense.
3. Changes in the net other postemployment benefits liability not included in OPEB
expense.
h. Inventories
Proprietary fund inventories are valued at weighted-average cost and consist of
expendable supplies and repair parts. The cost of such inventories is recorded as
expenditures/expenses when consumed rather than when purchased.
176
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
i. Interfund Transactions
As a general rule, interfund transactions have been eliminated from the
government-wide financial statements. Exceptions to this rule are payments in-lieu
or charges for current service between the City’s enterprise activities and the City’s
governmental activities. Elimination of these transactions would distort the direct
costs and program revenues for the various functions. Certain eliminations have
been made regarding 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.
Numerous transactions occur between funds of the City resulting in transfers and
amounts due to or from other funds. Amounts due to or from are the current (due
within one year) portion of monies that are to be paid or to be received from other
funds.
j. Long-Term Obligations
In the government-wide and proprietary funds financial statements, long-term
obligations are recorded as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund-type statement of net position. Bond
premiums and discounts are deferred and amortized over the life of the debt. In the
governmental fund financial statements, bond discounts and premiums are
recognized as another financing source or use. Issuance costs are recorded as a
current year debt service expenditure.
k. Employee Compensated Absences
The City records the cost of all accumulated and unused leave time (vacation, sick,
and comp) as a liability when earned in the government-wide and proprietary funds
financial statements. In the governmental funds financial statements these amounts
are recorded as expenditures when due and payable.
177
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
l. Property Tax Revenue
Property tax in California is levied according to Article 13-A of the California
Constitution. The basic levy is a countywide-levy of one percent of total assessed
valuation and is allocated to county governments, school districts, cities and special
districts. Additional levies require two-thirds approval by voters and are allocated
directly to the specific government.
In the government-wide financial statements, property tax is recorded when earned,
regardless of when levied, due, or received. City property tax revenues are
recognized when levied in the governmental funds to the extent that they result in
current receivables collectible within 60 days after year-end.
The County acts as a collection agent for property tax for all of the local
governmental units. Property taxes are normally collected twice per year. The
property tax calendar is as follows:
Lien Date, January 1 - Prior Fiscal Year
Levy Date, July 1 - Levy Fiscal Year
Due Date, First Installment - November 1
Due Date, Second Installment - February 1
Delinquent Date, First Installment - December 10
Delinquent Date, Second Installment - April 10
178
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
m. Redevelopment Property Tax Trust Funds
Under ABX1 26, revenues that were previously distributed to redevelopment
agencies (prior to their dissolution) in the form of property tax increment will no
longer be received. Instead, revenues are deposited by County Auditors into
Redevelopment Property Tax Trust Funds (RPTTF) created in the County Treasury
for each Successor Agency. The County Auditor administers the RPTTF and
disburses twice annually from this fund pass-through payments to affected taxing
entities, an amount equal to the total of obligation payments that are required to be
paid from tax increment as denoted on the Recognized Obligation Payment
Schedules (ROPS) to Recognized Obligation Retirement Funds (RORF)
established in the treasury of the Successor Agencies, and various allowed
administrative fees and allowances. Any remaining balance is then distributed by
the County Auditor back to affected taxing entities under a prescribed method that
accounts for pass-through payments.
The calendar for distribution of RPTTF funds is as follows:
Annual ROPS submission due to Department of Finance, February 1
Distribution of RPTTF to Successor Agencies for the July-December ROPS
period, June 1
Distribution of RPTTF to Successor Agencies for the January-June ROPS
period, January 2
n. Cash Flow Statements
For purposes of the Statement of Cash Flows, the Proprietary Funds consider all
cash and investments to be cash equivalents, as these funds participate in the
citywide cash and investment pool.
o. Estimates
The accompanying financial statements require management to make estimates
and assumptions that effect certain reported amounts and disclosures. Actual
results could differ from those estimates.
179
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
p. Pensions and OPEB
For purposes of measuring the net pension liability, net OPEB liability, related
deferred outflows of resources and deferred inflows of resources, pension/OPEB
expense, information about the fiduciary net position of the Plan and additions
to/deductions from the Plan’s fiduciary net position have been determined on the
same basis as they are reported by the CalPERS’ Financial Office and the City’s
Defined Benefit Pension Plan. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when currently due and payable in
accordance with the benefit terms. Investments are reported at fair value.
GASB Statement Nos. 68 and 75 require reported results to pertain to liability and
asset information within certain defined timeframes. For this report, the following
timeframes are used.
Supplemental
Employee
Retirement Plan
CalPERS
Pension Plans
Other
Post-Employment
Benefit Plan
Valuation Date (VD)June 30, 2019 June 30, 2019 June 30, 2019
Measurement Date (MD) June 30, 2021 June 30, 2020 June 30, 2020
Measurement Period (MP) July 1, 2020 to
June 30, 2021
July 1, 2019 to
June 30, 2020
July 1, 2019 to
June 30, 2020
180
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
q. Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value
framework provides a hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3
measurements). The three levels of fair value hierarchy are described as follows:
Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for
identical assets or liabilities in active markets.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly and fair value is determined
through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets or liabilities in markets that are
inactive;
Inputs other than quoted prices that are observable for the asset or liability;
Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
Level 3 - Inputs to the valuation methodology are unobservable and significant to
the fair value measurement. These unobservable inputs reflect the City’s own
assumptions about the inputs market participants would use in pricing the asset or
liability (including assumptions about risk). These unobservable inputs are
developed based on the best information available in the circumstances and may
include the City’s own data.
181
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS
Investments Authorized by the California Government Code and the City’s
Investment Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code (or the City’s investment policy, where more restrictive).
The table also identifies certain provisions of the California Government Code Section
53601 (or the City’s investment policy, where more restrictive) that address interest
rate risk and concentration of credit risk. This table does not address investments of
debt proceeds held by bond trustees that are governed by the provisions of debt
agreements of the City, rather than the general provisions of the California Government
Code or the City’s investment policy.
INVESTMENT TYPE MAXIMUM MATURITY
MAXIMUM SPECIFIED % OF PORTFOLIO
/ MAXIMUM PER ISSUER
MINIMUM RATING
REQUIREMENTS
Bankers' Acceptances 180 days 25% (up to 40% with Council approval) /
10%A1/P1, "A" Rating
Negotiable Certificates of Deposit 3 years (Up to 5 years
with Council approval 30% / 10%A1/P1, "A" Rating
Commercial Paper 270 days 25% / 10%A1, "A" Rating
State Obligations ‐ CA And Others 5 years None / 10%"A" Rating
City/Local Agency of CA Obligations 5 years None / 10%"A" Rating
U.S. Treasury Obligations 5 years None None
U.S. Government Agency Obligations 5 years None None
IBRD, IFC, IADB 5 years 10%"AA" Rating
Repurchase Agreements 3 Months None None
Reverse Repurchase Agreements 92 days
20% of the base value of the portfolio.
Requires City Council Approval.None
Medium‐Term Corporate Notes 5 years 30% / 10%"A" Rating
Non‐negotiable Certificates of Deposit 3 years None / 10%A1/P1, "A" Rating
Money Market Mutual Funds 60 days 15% / 10%"AAA" Rating
Local Agency Investment Fund (LAIF) N/A Up to $75,000,000 None
Orange County Investment Pool (OCIP) N/A Up to $75,000,000 None
Joint Powers Authority N/A None / $20,000,000 See 10.0N of IPS
182
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the
debt agreements, rather than the general provisions of the California Government Code
or the City’s investment policy. The table below identifies the investment types that are
authorized for investments held by a bond trustee, but bond indentures do allow for
other forms of investments if approved in writing by the bond insurer that are not
identified below. The table also identifies certain provisions of these debt agreements
that address interest rate risk and concentration of credit risk.
Authorized Investment Type Maximum Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment
in One Issuer
U.S. Treasury Securities 5 Years No Limit No Limit
Federal Agency Securities 5 Years No Limit No Limit
Bankers' Acceptances 180 Days No Limit No Limit
Time CDs 360 Days No Limit No Limit
Negotiable CDs 360 Days No Limit No Limit
LAIF N/A No Limit No Limit
Commercial Paper 270 Days No Limit No Limit
Municipal Bonds from Any State Life of Bond No Limit No Limit
Money Market Funds N/A No Limit No Limit
Investment Agreements Life of Bond No Limit No Limit
Corporate Bonds 5 Years No Limit No Limit
California Asset Mgmt. Program N/A No Limit No Limit
Forward Purchase/Delivery Agreements Life of Bond No Limit No Limi t
183
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
Investment of the Pension Trust Fund – Retirement Supplemental Fund
The Investment Policy Statement (IPS) of the Huntington Beach Supplemental Pension
Trust is established in accordance with the assignment of fiduciary duties by the State
of California Constitution and State and Local Government Codes. The purpose of the
Investment Policy is to set guidelines for a prudent investment-making process. The
policy was established with the assumption that the longer-term nature of the portfolio
provides for higher risk tolerance and short-term volatility, but more potential for capital
growth. The Investment Manager will be responsible for carrying out the activities
related to the portfolio in accordance with the IPS to meet the goals of an agreed upon
risk/return profile, and in accordance with the mix of parameters outlined below:
Authorized Investment Type Minimum
Allocation
Target Asset
Allocation
Maximum
Allocation
Cash or Equivalents 0% 0% 10%
Money Market 0% 0% 10%
Fixed Income 30% 40% 50%
Intermediate Bond 30% 40% 50%
Short‐Term Bond 0% 0% 10%
Long‐Term Bond 0% 0% 10%
High Yield Bond 0% 0% 10%
Inflation Protected Bond 0% 0% 10%
World Bond 0% 0% 10%
Domestic Equity 17% 27% 37%
Large Cap Equity (Value, Blend, Growth) 8% 18% 28%
Mid Cap Equity (Value, Blend, Growth) 0% 6% 16%
Small Cap Equity (Value, Blend, Growth) 0% 3% 13%
Foreign Equity 11% 21% 31%
Foreign Large Equity (Value, Blend, Growth) 7% 17% 27%
Foreign Sm / Mid Equity (Value, Growth) 0% 0% 10%
Emerging Markets 0% 4% 14%
Real Estate 0% 10% 20%
Real Estate 0% 10% 20%
Commodities 0% 2% 12%
Natural Resources 0% 2% 12%
184
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
At year-end, the City had the following deposits and investments (amounts in
thousands):
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect
the fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value is to changes in market interest rates. One of the
ways that the City manages its exposure to interest rate risk is by purchasing a
combination of shorter term and longer term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing or coming close to maturity evenly
over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments, including
investments held by bond trustees, to market interest rate fluctuations is provided by
the following table that shows the distribution of the City’s investments by maturity (in
thousands).
Primary Government:
Cash and Investments 315,380$
Cash and Investments with Fiscal Agent 9,902
Total Primary Government 325,282
Fiduciary Funds:
Cash and Investments 11,140
Cash and Investments with Fiscal Agent 76,208
Total Fiduciary Funds 87,348
Total Deposits and Investments 412,630$
INVESTMENTS: Fair Value Less than 1 1 to 3 3 to 5 More than 5 Total
US Treasuries 13,129$ -$ 3,065$ 10,064$ -$ 13,129$
US Agency Securities*113,063 10,018 32,424 70,621 - 113,063
Mutual Funds 69,928 69,928 - - - 69,928
Money Market Funds 1,578 1,578 - - - 1,578
Medium Term Notes - IADB 30,616 - 15,596 15,020 - 30,616
Corporate Bonds 45,968 18,155 23,806 4,007 - 45,968
Local Agency Investment Fund 44,677 44,677 - - - 44,677
Orange County Investment Pool 65,337 65,337 - - - 65,337
California Asset Mgmt Program 2,773 2,773 - - - 2,773
PARS Pension Rate Stabilization Program 11,378 11,378 - - - 11,378
Total Investments 398,447$ 223,844$ 74,891$ 99,712$ -$ 398,447
Total Deposits 14,183
Total Deposits and Investments 412,630$
* Security is callable, but classified above according to original maturity date
Investment Maturities (In Years)
185
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. Presented below are the minimum
ratings required by, where applicable, the California Government Code or the City’s
investment policy, or debt agreements, and the actual rating as of the year-end for each
investment type (in thousands):
Concentration of Credit Risk
The City’s investment policy limits investments in any one issuer, except for U.S.
Treasury Securities, U.S. Government Agencies and the Local Agency Investment
Fund, to no more than 10% of the portfolio. In addition, no more than 50% can be
invested in a single security type or with a single financial institution and every security
type has a specific limit. This is in addition to the limits placed on investments by State
law. Investments in any one issuer (other than U.S. Treasury Securities, external
investment pools, or Money Market Funds) that represent 5% or more of the City’s total
investments are as follows (in thousands):
Fair Value
Issuer Investment Type Amount
Federal Home Loan Bank U.S. Agency Securities 73,200$
Federal Home Loan Mortgage Corporation U.S. Agency Securities 16,313$
Inter-American Development Bank Medium Term Notes 15,596$
Remaining as of Year End
INVESTMENTS: Minimum
Legal Rating Total AAA AA A BBB+ Not Rated
US Treasuries N/A 13,129$ 13,129$ -$ -$ -$ -$
US Agency Securities*N/A 113,063 113,063 - - - -
Mutual Funds N/A 69,928 - - - - 69,928
Money Market Funds AAA 1,578 1,578 - - - -
Medium Term Notes - IADB AA 30,616 30,616 - - - -
Corporate Bonds A 45,968 - 12,531 27,431 6,006 -
Local Agency Investment Fund N/A 44,677 - - - - 44,677
Orange County Investment Pool N/A 65,337 - - - - 65,337
California Asset Mgmt Program N/A 2,773 2,773 - - - -
PARS Pension Rate Stabilization Program N/A
11,378 - - - - 11,378
Total Investments 398,447$ 161,159$ 12,531$ 27,431$ 6,006$ 191,320$
Note: All US Agencies are rated AAA by Moody's and AA by S&P
186
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker-dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
another party. The California Government Code and the City’s investment policy do not
contain legal or policy requirements that would limit the exposure to custodial credit risk
for deposits or investments, other than the following provisions for deposits: The
California Government Code requires that a financial institution secure deposits made
by state or local governmental units by pledging securities in an undivided collateral
pool held by a depository regulated under state law (unless so waived by the
governmental unit). The fair value of the pledged securities in the collateral pool must
equal at least 110 percent of the total amount deposited by the public agencies.
California law also allows financial institutions to secure City deposits by pledging first
trust deed mortgage notes having a value of 150 percent of the secured public deposits.
As of June 30, 2021, the City’s deposits with financial institutions were covered by FDIC
up to $250,000, and the remaining amounts were collateralized as described above.
None of the City’s investments were subject to custodial credit risk. Per the Investment
Policy’s statement, the City of Huntington Beach is the registered owner of all
investments in the portfolio.
Investment in State Investment Pool
The City is a voluntary 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 pro-rata share of the fair value
provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis. Currently, LAIF
does not have an investment rating.
187
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
Investment in the Orange County Investment Pool
The City is a participant in the County Treasurer’s Orange County Investment Pool
(OCIP). The OCIP is an external investment pool, is not rated and is not registered with
the Securities Exchange Commission (SEC). The County Treasury Oversight
Committee conducts OCIP oversight. Cash on deposit in the OCIP at June 30, 2021 is
stated at fair value. The OCIP values participant shares on an amortized cost basis
during the year and adjusts to fair value at year-end. For further information regarding
the OCIP, refer to the County of Orange Annual Comprehensive Financial Report.
Investment in California Asset Management Program Pool
The City is a voluntary participant in the California Asset Management Program
(CAMP). CAMP is an investment pool offered by the California Asset Management
Trust (the Trust). The Trust is a joint powers authority and public agency created by the
Declaration of Trust and established under the provisions of the California Joint
Exercise of Powers Act (California Government Code Sections 6500 et seq., or the
“Act”) for the purpose of exercising the common power of its Participants to invest
certain proceeds of debt issues and surplus funds. The Trust’s activities are directed
by a Board of Trustees, all of whom are employees of the California public agencies
which are participants in the Trust. The City reports investments in CAMP at the fair
value amounts provided by CAMP, which is the same as the value of the pool share.
The Pool is managed to maintain a dollar-weighted average portfolio maturity of 60
days or less and seeks to maintain a constant net asset value (NAV) per share of $1.00.
The Pool invests in obligations of the United States Government and its agencies, high-
quality, short-term debt obligations of U.S. companies and financial institutions. The
Pool is a permitted investment for all local agencies under California Government Code
Section 53601(p). CAMP is rated AAAm by Standard & Poor's.
Investment in Public Agency Retirement Services Pension Rate Stabilization
Program
The City established a Section 115 pension trust account within the Public Agency
Retirement Services Pension Rate Stabilization Program (PARS PRSP) to hold assets
that are legally restricted for use in administering the City’s defined benefit pension
plan. The pension trust fund’s specific cash and investments are managed by a third-
party portfolio manager under guidelines approved by the City.
188
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
2. CASH AND INVESTMENTS (Continued)
Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy
established by generally accepted accounting principles. The City has the following
recurring fair value measurements as of June 30, 2021 (in thousands):
3. OTHER RECEIVABLES
A summary of Other Receivables as of June 30, 2021 is as follows (in thousands):
INVESTMENTS: Level 1 Level 2 Level 3 Total
U.S. Treasuries -$ 13,129$ -$ $ 13,129
U.S. Agency Securities - 113,063 - 113,063
Medium Term Notes - IADB - 30,616 - 30,616
Corporate Bonds - 45,968 - 45,968
Total Investments -$ 202,776$ -$ 202,776$
Fair Value Hierarchy
Description Amount
Developer Loans Receivable 39,286$
Emerald Cove Loan Receivable 6,640
Housing Rehabilitation Loans Receivable 2,207
First Time Homebuyers Receivable 1,446
Emergency Medical Fee Receivable 1,500
CDBG Program Receivable 1,076
Affordable Housing In-Lieu Receivable 84
Infrastructure Fund 209
Other Grants Receivable 1,586
Other Receivable 7,195
Total Other Receivables 61,229
Allowance for Uncollectible Developer Loans (39,286)
Net Other Receivables on Governmental Fund Financial Statements 21,943$
Other Receivables Reconciliation
Net Receivable on Government-wide Financial Statements 36,889$
Taxes Receivable on Governmental Fund Financial Statements (14,850)
Other Receivables on Internal Service Fund (96)
Net Other Receivables on Governmental Fund Financial Statements 21,943$
189
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
3. OTHER RECEIVABLES (Continued)
a. Developer Loans
Loans made to developers to construct or rehabilitate certain facilities under
deferred loan agreements total $39,286,000 at year-end. These loans are allowed
until a future event occurs. Loans to the Low and Moderate Income Housing Asset
Fund total $20,935,000, loans made under the Home Program total $14,040,000
and loans made under the Affordable Housing In-Lieu Program total $4,311,000.
Interest rates on these loans range from 0% to 10%. The allowance for uncollectible
developer loans is $39,286,000 due to the terms of the agreement to forgive the
balance of loans after a specified time period if all the conditions of loan forgiveness
are met.
b. Emerald Cove Loan
On June 15, 2010, the former Redevelopment Agency loaned Emerald Cove, LP
$8,000,000 to acquire and rehabilitate Emerald Cove Senior Apartments. The loan
has an interest rate of 3% and is to be repaid annually from residual receipts over
60 years. The loan was transferred to the Low and Moderate Income Housing Asset
Fund in Fiscal Year 2011-12. The loan balance as of June 30, 2021 is $6,640,000.
c. Housing Rehabilitation Loans
Loans made to qualified homeowners and landlords in the City of Huntington Beach
to rehabilitate certain single-family homes or multifamily rental housing under
deferred loan agreements total $2,207,000 at year-end. These loans are deferred
until a future event occurs. The interest rates on these loans range from 0% to 6%.
d. Deferred Loans – First Time Homebuyers and Down Payment Assistance
Loans made for down payment assistance of qualified first time homebuyers under
deferred loan agreements total $1,446,000 at year-end. These loans are deferred
until a future event occurs.
190
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
4. UNEARNED REVENUE
Governmental and enterprise funds defer revenue recognition in connection with
resources that have been received as of year-end, but not yet earned (unearned
revenue). The amounts are as follows (in thousands):
5. UNAVAILABLE REVENUE
Certain revenues in governmental funds are considered unavailable revenue until
received. All revenues including property and sales tax are recognized in the year
earned or levied in the government-wide financial statements, but are recorded as
unavailable revenue in the fund financial statements to the extent they are not collected
within 60 days after year-end. The amounts are as follows (in thousands):
Deferred Loans to developers and qualified individuals for housing rehabilitation and to
first time homebuyers are discussed in Note 3.
Related Party Transaction related to the housing loan granted to the City Manager is
discussed in Note 14.
General Fund
Grants
Special
Revenue
Total
Unearned
Revenue
Comm Services Unearned Revenue (Classes)1,020$ -$ 1,020$
Grants - 14,826 14,826
Total $ 1,020 $ 14,826 $ 15,846
General Fund
Grants Special
Revenue LMIHAF
Other
Governmental
Funds
Total
Unavailable
Revenue
Grants -$ 2,214$ -$ -$ 2,214$
Deferred Loans:
Emerald Cove - - 6,640 - 6,640
Housing Rehabilitation - 2,207 - - 2,207
First Time Homebuyers - - 1,446 - 1,446
Related Party Transaction
(City Manager's Housing Loan)1,457 - - - 1,457
Other Unavailable Revenue 587 - - 209 796
Total 2,044$ 4,421$ 8,086$ 209$ 14,760$
191
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL
a. Summary
Net Pension Liability
Net Pension Liability is reported in the accompanying statement of net position as
follows:
Deferred Outflows of Resources
Deferred Outflows of Resources are reported in the accompanying statement of net
position as follows:
Deferred Inflows of Resources
Deferred Inflows of Resources are reported in the accompanying statement of net
position as follows:
Net Pension
Liability
CalPERS Miscellaneous Plan 160,441$
CalPERS Safety Plan 271,528
Supplemental Plan (Note 7)6,408
Total 438,377$
Deferred employer
Investment earnings Differences between pension contributions
less than Expected and made after
expected earnings Actual Experience measurement date Total
CalPERS Miscellaneous Plan 3,239$ -$ 150,880$ 154,119$
CalPERS Safety Plan 4,106 489 257,329 261,924
Total 7,345$ 489$ 408,209$ 416,043$
Differences between
Changes Expected and
in assumptions Actual Experience Total
CalPERS Miscellaneous Plan -$ 3,587$ 3,587$
CalPERS Safety Plan 692 4,104 4,796
Supplemental Plan (Note 7)- 8,237 8,237
Total 692$ 15,928$ 16,620$
192
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
Pension expenses for the measurement period ending June 30, 2020 (the
measurement date), are included in the accompanying financial statements as
follows:
b. Plan Description
Substantially all City employees working the equivalent of 1,000 hours per fiscal
year are eligible to participate in the Safety Plan and Miscellaneous Plan Agent
multiple-employer defined benefit plans administered by California Public
Employees Retirement System (CalPERS), which acts as a common investment
and administrative agent for its participating member employers. Benefit Provisions
under the Plans are established by State statutes within the Public Employee’s
Retirement Law. Following the passage of AB340, Public Employees’ Pension
Reform Act (PEPRA) by the California Legislature, employees hired on or after
January 1, 2013, who were not previously enrolled in the PERS system elsewhere,
or who have had a break in service of at least six months are required to be enrolled
in this retirement program which provides a benefit level that is lower than the
benefits provided for CalPERS employees that do not meet the PEPRA
qualifications previously described. CalPERS issues publicly available reports that
include a full description of the pension plans regarding benefit provisions,
assumptions and membership information that can be found on the CalPERS
website. Copies of the CalPERS annual financial report may be obtained from the
CalPERS Executive Office – 400 P Street, Sacramento, CA 95814.
Net Pension
Expense
CalPERS Miscellaneous Plan 14,962$
CalPERS Safety Plan 36,664
Supplemental Plan (Note 7) 5,381
Total 57,007$
193
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
Benefits Provided
CalPERS provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Benefits are
based on years of credited service, equal to one year of full time employment.
Benefit provisions and all other requirements are established by State statute and
may be amended by city contracts with employee bargaining groups.
Participant is eligible for non-industrial disability retirement if becomes disabled and
has at least 5 years of credited service. There is no special age requirement. The
standard non-industrial disability retirement benefit is a monthly allowance equal to
1.8 percent of final compensation, multiplied by service.
Industrial disability benefits are not offered to miscellaneous employees. The City
provides industrial disability retirement benefit to safety employees. The industrial
disability retirement benefit is a monthly allowance equal to 50 percent of final
compensation.
An employee's beneficiary may receive the basic death benefit if the employee dies
while actively employed. The employee must be actively employed with the City to
be eligible for this benefit. An employee's survivor who is eligible for any other pre-
retirement death benefit may choose to receive that death benefit instead of this
basic death benefit. The basic death benefit is a lump sum in the amount of the
employee's accumulated contributions, where interest is currently credited at 7.5
percent per year, plus a lump sum in the amount of one month's salary for each
completed year of current service, up to a maximum of six months' salary. For
purposes of this benefit, one month's salary is defined as the member's average
monthly full-time rate of compensation during the 12 months preceding death.
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to
the retiree's designated survivor(s), or to the retiree's estate.
Benefit terms provide for annual cost-of-living adjustments to each employee’s
retirement allowance. Beginning the second calendar year after the year of
retirement, retirement and survivor allowances will be annually adjusted on a
compound basis by 2 percent.
194
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
The Plans’ provisions and benefits in effect at June 30, 2021 are summarized as
follows:
Classic PEPRA
Hire date Prior to January 1, 2013 January 1, 2013 and after
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service
Benefit payments monthly for life monthly for life
Retirement age minimum 50 years minimum 52 years
Monthly benefits, as a % of eligible compensation
2.0% - 2.5%, 50 years - 63+
years, respectively
1.0% - 2.5%, 52 years - 67+
years, respectively
Required employee contribution rates 8.000%6.250%
Required employer contribution rates
July 1, 2020 - June 30, 2021 38.855%38.855%
Classic PEPRA
Hire date Prior to January 1, 2013 January 1, 2013 and after
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service
Benefit payments monthly for life monthly for life
Retirement age minimum 50 years minimum 52 years
Monthly benefits, as a % of eligible compensation 3%, 50+ years
2.0% - 2.7%, 50 years - 57+
years, respectively
Required employee contribution rates 9.000%11.750%
Required employer contribution rates
July 1, 2020 - June 30, 2021 60.780%60.780%
Miscellaneous Agent Plans
Safety Agent Plans
195
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
c. Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”)
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
CalPERS’ annual actuarial valuation process. The actuarially determined rate is the
estimated amount necessary to finance the costs of benefits earned by employees
during the year, with an additional amount to finance any unfunded accrued liability.
The employer is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. For the measurement
period ended June 30, 2020, miscellaneous participants under the Classic and
PEPRA plans are required to contribute 8% and 6.25% of their annual covered
salary, respectively. Safety participants under the Classic and PEPRA plans are
required to contribute 9% and 11.75% of their annual covered salary, respectively.
In addition, the City is required to make employer contributions at the actuarially
determined rates of 38.855% and 60.780% for the miscellaneous and safety plans,
respectively, for the period July 1, 2020 through June 30, 2021.
At June 30, 2019, the valuation date, the following employees were covered by the
benefit terms for each Plan:
Miscellaneous Safety
Active members 593 377
Transferred members 439 79
Terminated members 329 58
Retired members and beneficiaries 1003 610
196
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
d. Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of the Plan is
measured as of June 30, 2020, using an annual actuarial valuation as of June 30,
2019 rolled forward to June 30, 2020 using standard update procedures. A
summary of principal assumptions and methods used to determine the net pension
liability is illustrated below:
Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial
valuation, rolled forward to June 30, 2020 using standard update procedures, were
determined using the following actuarial assumptions:
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Actuarial Cost Method Entry Age Normal in accordance with the requirement of GASB Statement No. 68
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table*
Post Retirement Benefit Increase
*The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2017
CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of
90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience
Study and projected mortality improvement using Review of Actuarial Assumptions report from December 2017 that can be found on
the CalPERS website.
7.15% Net of Pension Plan Investment and Administrative Expenses; includes
Inflation
Derived using CalPERS’ Membership Data for all Funds.
The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance
floor on purchasing power applies, 2.50% thereafter.
7.15%
2.50%
Varies by Entry Age and Service
197
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
Long-term Expected Rate of Return – The long-term expected rate of return on
pension plan investments was determined using a building-block method in which
expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account
both short-term and long-term market return expectations as well as the expected
pension fund cash flows. Using historical returns of all of the funds’ asset classes,
expected compound (geometric) returns were calculated over the short-term (first 10
years) and the long-term (11+ years) using a building-block approach. Using the
expected nominal returns for both short-term and long-term, the present value of
benefits was calculated for each fund. The expected rate of return was set by
calculating the rounded single equivalent expected return that arrived at the same
present value of benefits for cash flows as the one calculated using both short-term
and long-term returns. The expected rate of return was then set equal to the single
equivalent rate calculated above and adjusted to account for assumed administrative
expenses.
The expected real rates of return by asset class are as follows:
Current Target Real Return Real Return
Asset Class1 Allocation Years 1-102 Years 11+3
Global Equity 50.00%4.80%5.98%
Fixed Income 28.00%1.00%2.62%
Inflation Assets 0.00%0.77%1.81%
Private Equity 8.00%6.30%7.23%
Real Estate 13.00%3.75%4.93%
Liquidity 1.00%0.00%-0.92%
1 In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is
included in Short-term Investments; Inflation Assets are included in both Global Equity
Securities and Global Debt Securities.
2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period.
198
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
Discount Rate – The discount rate used to measure the total pension liability at
June 30, 2020 was 7.15 percent. The projection of cash flows used to determine the
discount rate assumed that contributions from plan members will be made at the
current member contribution rates and that contributions from employers will be
made at statutorily required rates, actuarially determined. Based on those
assumptions, the Plan’s fiduciary net position was projected to be available to make
all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Subsequent Events – There were no subsequent events that would materially
affect the results presented in this disclosure.
e. Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the
measurement period:
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2019 (Valuation Date) 591,598$ 432,522$ 159,076$
Changes in the year:
Service cost 7,779 - 7,779
Interest on the total pension liabilities 41,058 - 41,058
Differences between expected and actual experience (6,087) - (6,087)
Benefit payments, including refunds of members contributions (30,321) (30,321) -
Contributions - employer - 16,879 (16,879)
Contributions - employee - 3,630 (3,630)
Net investment income - 21,486 (21,486)
Administrative expenses - (610) 610
Net changes 12,429 11,064 1,365
Balance at June 30, 2020 (Measurement Date)604,027$ 443,586$ 160,441$
Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability
Balance at June 30, 2019 (Valuation Date) 782,327$ 518,645$ 263,682$
Changes in the year:
Service cost 13,226 - 13,226
Interest on the total pension liabilities 54,597 - 54,597
Differences between expected and actual experience (4,721) - (4,721)
Benefit payments, including refunds of members contributions (41,247) (41,247) -
Contributions - employer - 25,848 (25,848)
Contributions - employee - 4,355 (4,355)
Net investment income - 25,784 (25,784)
Administrative expenses - (731) 731
Net changes 21,855 14,009 7,846
Balance at June 30, 2020 (Measurement Date)804,182$ 532,654$ 271,528$
Miscellaneous Plan
Safety Plan
199
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The
following presents the City’s net pension liability, calculated using the discount rate,
as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is one percentage point lower or one percentage point higher than
the current rate:
Pension Plan Fiduciary Net Position – Detailed information about each pension
plan’s fiduciary net position is available in the separately issued CalPERS financial
reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions
As of the start of the measurement period (July 1, 2019), the net pension liability
was $159,076,000 for the Miscellaneous Plan and $263,682,000 for the Safety
Plan. For the measurement period ending June 30, 2020 (the measurement date),
the City incurred a pension expense of $14,962,000 and $36,664,000 for the
Miscellaneous and Safety Plans, respectively.
The amortization period differs depending on the source of the gain or loss. The
difference between projected and actual earnings is amortized over 5-years straight
line. All other amounts are amortized straight-line over the average expected
remaining service lives of all members that are provided with benefits (active,
inactive and retired) as of the beginning of the measurement period.
Discount Rate - 1%Current Discount Discount Rate + 1%
(6.15%)Rate (7.15%)(8.15%)
Miscellaneous Plan 237,719$ 160,441$ 96,583$
Safety Plan 376,752 271,528 184,923
Aggregate Total 614,471$ 431,969$ 281,506$
Plan's Aggregate Net Pension Liability/(Asset)
200
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
The Expected Average Remaining Service Lifetime (“EARSL”) is calculated by
dividing the total future service years of active employees by the total number of
plan participants (active, inactive, and retired) in the risk pool. For the 2019-20
measurement period, the EARSL for each plan is as follows:
At June 30, 2021 the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Miscellaneous Safety
Expected Average Remaining Service Lifetime 2.4 3.9
Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Resources
Difference between projected and actual earning on
pension plan investments 3,239$ -$
Difference between expected and actual experience - (3,587)
Contributions made subsequent to the
measurement date 150,880 -
Total 154,119$ (3,587)$
Safety Plan
Deferred outflows Deferred inflows
of Resources of Resources
Difference between projected and actual earning on
pension plan investments 4,106$ -$
Changes in assumptions - (692)
Difference between expected and actual experience 489 (4,104)
Contributions made subsequent to the
measurement date 257,329 -
Total 261,924$ (4,796)$
201
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
6. RETIREMENT PLAN – NORMAL (Continued)
For the Miscellaneous Plan and Safety Plan, $150,880,000 and $257,329,000,
respectively, was reported as deferred outflows of resources related to pensions
resulting from City’s contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ended June 30,
2022. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized in pension expense as
follows:
7. RETIREMENT PLAN – SUPPLEMENTAL
a. Plan Description and Benefits
The City administers a supplemental single-employer defined benefit retirement
plan (Supplemental Plan) for all employees hired prior to 1997 (exact dates are
different for various associations). The Plan is governed by a three-member
Supplemental Employee Retirement Plan and Trust Board consisting of the City
Treasurer, Chief Financial Officer, and the City Manager, or his/her designee. The
Board has the authority, under the terms of the Trust agreement, to control and
manage the operation and administration of the Plan. Benefit provisions are
established and may be amended through negotiations between the City and
employee bargaining associations during each bargaining period, which are then
approved through resolutions of the City Council. In fiscal year 2008-09, the City
established the Supplemental Employee Retirement Plan and Trust, and
transferred $24,918,000 to an irrevocable trust from the prefunded amounts. The
plan and trust are reported as a pension trust fund in the City’s financial statements
on a full accrual basis.
Measurement Periods
Ended June 30,Miscellaneous Safety
2021 (4,427)$ (3,860)$
2022 101 (67)
2023 2,183 1,555
2024 1,795 2,171
(348)$ (201)$
Deferred Outflows/ (Inflows) of Resources
202
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
The Supplemental Plan will pay the retiree an additional amount to his or her
CalPERS retirement benefit for life. In order to be eligible for the benefit, the retiree
must retire from the City. The amount that is computed as a factor of an employee’s
normal retirement allowance is computed at retirement and remains constant for his
or her life. This benefit is payable by the City for the duration of the life of the
member, and shall cease upon the employee’s death. As of June 30, 2019, the
date of the Plan’s most recent actuarial valuation, the average monthly benefit
received by inactive plan members and beneficiaries receiving benefits is $625.
Effective in 1998 (exact dates are different for various associations), new City
employees are ineligible to participate in the Supplemental Employee Retirement
Plan.
Employees Covered: At June 30, 2021, the measurement date, the following
employees were covered by the benefit terms for the Plan:
b. Employer Contributions
The City’s policy is to make required contributions as determined by the
Supplemental Plan’s actuary. The required contributions were determined as part
of the September 30, 2018 actuarial valuation. The City is required to contribute the
actuarially determined rate of 2.5% of total payroll for all permanent employees for
the year ended June 30, 2021. There are no employee contributions required for
the plan. Survivor and termination benefits are not included in the plan.
Administrative costs of this plan are financed through investment earnings.
For the year ended June 30, 2021, the contributions were (in thousands):
Contributions - employer 1,435$
Inactive employees receiving benefits 753
Active employees 65
Total 818
203
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
c. Investments
Investments of the Supplemental Plan are held separately from those of other City
funds by investment custodians. The Supplemental Employee Retirement Plan and
Trust Board is responsible for supervising all investments. Changes to the
Investment Policy require approval by the Board. The policy remained the same as
last fiscal year. The most recent policy was reviewed in June 2021 with an effective
date of July 1, 2021. Please refer to Note 2 for a detailed description of the
Supplemental Plan’s Investment Policy. The major asset class allocation for the
Supplemental Plan as of June 30, 2021 is listed below:
Quoted market prices have been used to value investments as of June 30, 2021.
These investments are held by the Trust or by an agent in the Trust’s name. A
portion of these investments is subject to credit risk (including custodial credit risk
and concentrations of credit risk), interest rate risk and/or foreign currency risk. The
Governmental Accounting Standards Board (GASB) Statement No. 40 requires the
disclosure of such risk. Please see below for a list of investments held in any one
organization that represents five percent or more of the Plan’s investment portfolio
at June 30, 2021:
Asset Class Strategic Allocation
Allocation as of
June 30,2019
Long-Term
Expected Rate of
Return
Fixed Income 40.00%38.36%1.55%
Equities 27.00%56.08%5.35%
Real Estate 10.00%4.95%0.00%
Commodities 2.00%0.00%0.00%
Cash and Equivalents 0.00%0.61%0.45%
Total 79.00%100.00%
AssetsVanguard International Growth Adm 17.22%
Fidelity® US Bond Index 14.11%
DoubleLine Total Return Bond I 10.08%
PGIM Total Return Bond R6 10.06%
Harbor Capital Appreciation Inst 8.13%
Parnassus Core Equity Institutional 7.78%
Vanguard Equity-Income Adm 7.51%
Concentration of Investments Equaling or Exceeding 5%
204
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
All Supplemental Plan investments are reflected in the schedule included in Section
c of the Note, with the exception of amounts held in the City’s investment pool
account. The City maintains an investment pool account for City funds. Monthly
contributions for the Plan are held in the City’s investment pool account and are
used to pay recurring expenditures. Refer to Note 2 for a description of the City’s
investments.
For the year ended June 30, 2021, the annual money-weighted rate of return on the
Plan’s investments, net of pension plan investment expenses, was 26.88%. The
money-weighted rate of return expresses investment performance, net of
investment expenses, adjusted for the changing amounts actually invested.
d. Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of the Plan is
measured as of June 30, 2021, using an annual actuarial valuation as of June 30,
2020 rolled forward to June 30, 2021 using standard update procedures. A
summary of principal assumptions and methods used to determine the City’s net
pension liability is shown on the following page.
205
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial
valuations for the June 30, 2021 measurement date were determined using the
following actuarial assumptions:
The changes in actuarial assumptions include the following:
All other actuarial assumptions used in the June 30, 2019 valuation were based on
the results of an actuarial experience study for the period from 1997 to 2015,
including updates to salary increase, mortality, and retirement rates. The future
service retirement liabilities load increased from 15% to 23% to reflect recent
experience of benefits being larger than anticipated.
e. Discount Rate & Sensitivity
The discount rate is used in the measurement of the Total Pension Liability. This
rate considers the ability of the fund to meet benefit obligations in the future. To
make this determination, employee contributions, benefit payments, expenses, and
investment returns are projected into the future. The Plan Net Position (assets) in
future years can then be determined and compared to its obligation to make benefit
payments in those years. As long as assets are projected to be on hand in a future
year, the assumed valuation discount is used. For this valuation, the discount rate
is 5.25%, based on the inflation assumption of 2.50% and a long-term asset
allocation of 70% equities and 30% fixed income. The geometric real rates of return
were assumed to be 5.35% for equities and 1.55% for fixed income. The long-term
expected rate of return is applied to all future projected benefit payments.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Actuarial Assumptions:
Discount Rate 5.25%
Inflation 2.50%
Salary Increases CalPERS 1997-2015 Experience Study plus 2.75% aggregate increase
Investment Rate of Return 5.25% Net of Investment Expenses
Mortality Rate Table
Retirement, Disability, Withdrawal CalPERS 1997-2015 Experience Study plus 23% load on future service
retirement liability added to reflect recent benefits experience.
CalPERS 1997-2015 Experience Study, mortality projected fully
generational with Scale MP-2019
206
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
According to Paragraph 30 of Statement 68, the long-term discount rate should be
determined without reduction for pension plan administrative expense. An
investment return excluding administrative expenses would have been 6.25
percent.
The long-term expected rate of return on pension plan investments was determined
using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of pension plan investment expense and
inflation) are developed for each major asset class.
In determining the long-term expected rate of return, both short-term and long-term
market return expectations were taken into account along with expected pension
fund cash flows. Such cash flows were developed assuming that both members and
employers will make their required contributions on time and as scheduled in all
future years. Using historical returns of all the funds’ asset classes, expected
compound (geometric) returns were calculated over the short-term (first 10 years)
and the long-term (11-60 years) using a building-block approach. Using the
expected nominal returns for both short-term and long-term, the present value of
benefits was calculated for each fund. The expected rate of return was set by
calculating the single equivalent expected return that arrived at the same present
value of benefits for cash flows as the one calculated using both short-term and
long-term returns. The expected rate of return was then set equivalent to the single
equivalent rate calculated above and rounded down to the nearest one quarter of
one percent.
207
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the
measurement period (in thousands):
Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The
following presents the City’s net pension liability, calculated using the discount rate,
as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is one percentage point lower or one percentage point higher than
the current rate:
Discount Rate - 1%
(4.25%)
Current Discount
Rate (5.25%)
Discount Rate + 1%
(6.25%)
14,397$ 6,408$ (368)$
Plan's Aggregate Net Pension Liability/(Asset)
(in thousands)
Total
Pension
Liability
Plan
Fiduciary
Net Position
Net Pension
Liability
Balance at June 30, 2020 71,074$ 59,017$ 12,057$
Changes in the year:
Service cost 350 - 350
Interest on the total pension liabilities 4,292 - 4,292
Changes of Assumptions 6,547 - 6,547
Benefit payments, including refunds of members contributions (5,494) (5,494) -
Contributions - employer - 1,435 (1,435)
Net investment income - 15,717 (15,717)
Administrative expenses - (314) 314
Net changes 5,695 11,344 (5,649)
Balance at June 30, 2021 76,769$ 70,361$ 6,408$
Supplemental Plan
208
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
7. RETIREMENT PLAN – SUPPLEMENTAL (Continued)
f. Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions
For the year ended June 30, 2021, the City recognized pension expense in the
amount of $5,381,000 for the Supplemental Plan.
At June 30, 2021, the City reported deferred inflows of resources related to the
supplemental pension plan from the following source (in thousands):
For the Supplemental Plan, $8,237,000 was reported as deferred inflows of
resources related to pensions which will be recognized in pension expense as
follows (in thousands):
Deferred Outflows / (Inflows)
Year Ended June 30,of Resources
2022 (1,825)$
2023 (1,908)
2024 (2,097)
2025 (2,407)
(8,237)$
Deferred Inflows
of Resources
Difference between projected and actual earnings on (8,237)$
pension plan investments
209
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS
a. Plan Description
The City administers the following two other post employment benefit (OPEB) plans:
Postemployment Medical Insurance
The City agreed, via contract, with each employee association to provide
postemployment medical insurance to retirees. These Other Postemployment
Benefits (OPEB) are based on years of service and are available to all retirees who
meet all three of the following criteria:
At the time of retirement, the employee is employed by the City.
At the time of retirement, the employee has a minimum of ten years of service
credit or is granted a service connected disability retirement.
Following official separation from the City, CalPERS grants a retirement
allowance.
The City’s obligation to provide the benefits to a retiree ceases when either of the
following occurs:
During any period the retiree is eligible to receive health insurance at the
expense of another employer; and/or
The retiree becomes eligible to enroll automatically or voluntarily in Medicare.
The subsidy a retiree is entitled to receive is based on the retiree’s years of service
credit and is limited to $344 per month after 25 years of service. If a retiree dies,
the benefits that would be payable for his or her insurance are provided to the
spouse or family for 12 months. The retiree may use the subsidy for any of the
medical insurance plans that the City’s active employees may enroll in. Employees
hired on or after October 1, 2014 are not eligible for this benefit.
PEMHCA
The City provides an agent multiple-employer defined benefit healthcare plan to
retirees through CalPERS under the California Public Employees Medical and
Hospital Care Act (PEMHCA), commonly referred to as PERS Health. PEMHCA
provides health insurance through a variety of Health Maintenance Organization
(HMO) and Preferred Provider Organization (PPO) options. The PEMHCA benefits
are applied to all safety employee groups, based on retirement plan election. The
benefits continue to the surviving spouse for one year. The Huntington Beach
Firefighters’ Association (HBFA) joined PEMHCA in 2011. All other safety groups -
Fire Management Association (FMA), Marine Safety Management Association
(MSOA), Police Management Association (PMA), and Police Officers’ Association
POA) - joined in 2004.
210
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS (Continued)
Safety employees are eligible for PEMHCA benefits if they retire from the City on
or after age 50 with at least five years of service or disability, and are eligible for a
PERS pension.
As of the June 30, 2020 measurement date, the following current and former
employees were covered by the benefit terms under the plan:
b. Accounting and Funding
The City utilizes the California Employers’ Retiree Benefit Trust (CERBT), an agent
multiple-employer plan, for the postemployment medical insurance benefit.
Benefits paid from the CERBT were $842,000 for year ended June 30, 2021. The
assets of the CERBT are excluded from the accompanying financial statements
since they are in an irrevocable trust administered by CalPERS. Copies of
CalPERS’ annual financial report may be obtained from their executive office: 400
P Street, Sacramento, CA, 95814 or on their website: www.calpers.ca.gov. The
City’s policy is to make 100% of each year’s ARC, with an additional amount to
prefund benefits as determined annually by City Council in order to improve the
funded status of the plan.
For PEMHCA, the City selected the “unequal” method for the contribution. Under
this method, the City offered a lesser contribution for retirees than for active
employees. The City paid the PEMHCA minimum for actives ($136 in 2019, $139
in 2020, and $143 in 2021). Beginning in 2008, Assembly Bill 2544 changed the
computation for annual increases to annuitant health care under the unequal
method. Under the new provisions, the City increases annuitant health care
contributions equal to an amount not less than five percent of the active employee
contributions, multiplied by the number of years in PEMHCA. The City’s contribution
for retirees is $71.50 per employee for the Huntington Beach Firefighter’s
Association (HBFA) and $121.55 for all other Safety groups in 2021. The annual
increase in minimum PEMHCA contribution to CalPERS will continue until the time
that the City contribution for retirees equals the City contribution paid for active
employees.
Postemployment
Medical Insurance PEMHCA
Retirees and beneficiaries receiving benefits 263 189
Inactive employees not yet receiving benefits 301 -
Active Plan Members 861 384
Total Plan Participants 1,425 573
211
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS (Continued)
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB
liability used to calculate the net OPEB liability was determined by an actuarial
valuation dated June 30, 2019, based on the following actuarial methods and
assumptions:
Actuarial Cost Method – Entry Age Normal
Discount rate – 6.25%
Projected salary increases for covered employees due to inflation – aggregate
increases of 3.00% per annum
Investment Rate of Return – 6.25%, assuming actuarially determined
contributions funded into CERBT Investment Strategy 2
Mortality Rate1 – Derived using CalPERS’ membership data for all funds
Pre-Retirement Turnover2 – Derived using CalPERS’ membership data for all
funds
PEMCHA minimum increases for actives - $145 in 2021, with 4.25% annual
increases thereafter
Healthcare Trend Rate – The medical trend rate represents the long-term
expected growth of medical benefits paid by the plan, due to non-age-related
factors such as general medical inflation, utilization, new technology, and the
like. The following table sets for the inflation trend assumption used for the
valuation:
1 Mortality information was derived from data collected during 1997 to 2015 CalPERS Experience Study dated December
2017, which may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. Post-
retirement mortality rates include mortality projected fully generational with Scale MP-19.
2. The pre-retirement turnover information was developed based on CalPERS’ specific data. For more details, please
refer to the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on the CalPERS
website www.calpers.ca.gov under Forms and Publications.
Calendar Calendar
Year Non-Medicare Medicare Year Non-Medicare Medicare
2021 7.25%6.30%2029 5.40% 4.85%
2022 7.00%6.10%2030 5.20%
4.70%
2023 6.75%5.90%2031-35 5.05%
4.60%
2024 6.50%5.70%2036-45 4.90%
4.50%
2025 6.25%5.50%2046-55 4.75%
4.45%
2026 6.00%5.30%2056-65 4.60%
4.40%
2027 5.80%5.15%2066-75 4.30%
4.20%
2028 5.60%5.00%2076+ 4.00%
4.00%
Annual RateAnnual Rate
212
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS (Continued)
Long-Term Expected Rate of Return
The long-term expected rate of return on OPEB plan investments was determined using a
building-block method in which expected future real rates of return (expected returns, net
of OPEB plan investment expense and inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting
the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major
asset class are summarized in the following table:
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25 percent. The
projection of cash flows used to determine the discount rate assumed that City
contributions will be made at rates equal to the actuarially determined contribution
rates. Based on those assumptions, the OPEB plan’s fiduciary net position was
projected to be available to make all projected OPEB payments for current active
and inactive employees and beneficiaries. Therefore, the long-term expected rate
of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Global Equity 40%4.82%
Fixed Income 43%1.47%
Treasury Inflation-Protected Securities ("TIPS") 5%1.29%
Commodities 4%0.84%
Real Estate Investment Trusts ("REITS")8%3.76%
Total 100%
* Long-term expected rate of return is 6.25%
CERBT Strategy 2
213
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS (Continued)
The changes in the net OPEB Liability for the plan are as follows (in thousands):
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate
The following presents the net OPEB liability of the City if it were calculated using a
discount rate that is one percentage point lower or one percentage point higher than
the current rate, for the measurement period ended June 30, 2020 (in thousands):
1% Decrease Current Discount Rate 1% Increase
(5.25%)(6.25%)(7.25%)
Net OPEB Liability 7,368$ 3,220$ (178)$
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB Liability
/ (Asset)
(a)(b)(c) = (a) - (b)
Balance at June 30, 2020 32,845$ 29,193$ 3,652$
(Measurement Date June 30, 2019)
Changes recognized for the measurement period:
Service Cost 1,096 - 1,096
Interest 2,064 - 2,064
Assumption Changes (298) - (298)
Contributions - Employer - 1,959 (1,959)
Net Investment Income - 1,580 (1,580)
Benefit Payments (1,848) (1,848) -
Administrative Expenses - (245) 245
Net Changes 1,014 1,446 (432)
Balance at June 30, 2021 33,859$ 30,639$ 3,220$
(Measurement Date June 30, 2020)
Increase / (Decrease)
214
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend
Rates
The following presents the net OPEB liability of the City if it were calculated using health
care cost trend rates that are one percentage point lower or one percentage point
higher than the current rate, for the measurement period ended June 30, 2020 (in
thousands):
OPEB Plan Fiduciary Net Position
The CERBT issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained from
the California Public Employees’ Retirement System, CERBT, P.O. Box 942703,
Sacramento, CA 94429-2703.
Recognition of Deferred Outflows and Deferred Inflows of Resources
Gains and losses related to changes in total OPEB liability and fiduciary net position
are recognized in OPEB expense systematically over time.
Amount are first 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 recognition period differs depending on the source of the gain or loss:
1% Decrease Current Trend 1% Increase
(6.25% Non-Medicare /
5.30% Medicare,
decreasing to 3.0%
Non-Medicare /
3.0% Medicare)
(7.25% Non-Medicare /
6.30% Medicare,
decreasing to 4.0%
Non-Medicare /
4.0% Medicare)
(8.25% Non-Medicare /
7.30% Medicare,
decreasing to 5.0%
Non-Medicare /
5.0% Medicare)
Net OPEB Liability (504)$ 3,220$ 7,950$
5 Years
Net difference between projected and actual
earnings on OPEB plan investments
215
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
8. OTHER POST EMPLOYMENT BENEFITS (Continued)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
As of June 30, 2021, the City recognized OPEB expense of $1,373,000. As of June 30,
2021, the City reported deferred outflows of resources related to OPEB from the
following sources:
The $1,882,000 reported as deferred outflows of resources related to contributions
subsequent to the June 30, 2020 measurement date will be recognized as a reduction
of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts
reported as deferred outflows of resources related to OPEB will be recognized as
expense as follows (in thousands):
Measurement Periods
Ended June 30,
2022 (205)$
2023 (302)
2024 (343)
2025 (257)
2026 (306)
Thereafter (142)
(1,555)$
Deferred
Outflows/ (Inflows)
of Resources
Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB Contributions subsequent to the measurement date 1,882$ -$
Difference between expected and actual experience 1,025 -
Changes in Assumptions - 2,697
Net difference between projected and actual earnings on 117 -
3,024$ 2,697$
216
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
9. RISK MANAGEMENT
The City is exposed to various risks of losses related to torts; theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The City records the liability claims as expenditures in the Self Insurance
General Liability Internal Service Fund and the workers’ compensation claims in the
Self Insurance Workers’ Compensation Internal Service Fund.
BICEP was created in 1988 by a joint powers agreement between the City of
Huntington Beach and four other local entities including Oxnard, Ventura, Santa Ana,
and West Covina, for the purpose of providing joint insurance coverage and related risk
management services for member cities. BICEP allows member entities to finance a
claims payment pool for certain liability claims in excess of $1,000,000 to a maximum
coverage limit of $27,000,000 for claims incurred through June 30, 2015, and
$24,000,000 thereafter.
Effective July 1, 2019, the member agencies of BICEP agreed to dissolve the Joint
Powers Authority. BICEP continues to exist for the purpose of disposing of all claims,
the distribution of assets, and any other functions necessary to conclude the affairs of
BICEP as provided in the Bylaws of the Authority. Upon dissolution of BICEP, the City
purchased liability insurance in the open marketplace, which provides insurance for
claims costs exceeding the City’s self-insured retention of $1,000,000. The maximum
coverage limit is $30,000,000, which is inclusive of the self-insured retention. Claims
that exceed the maximum limit of liability are covered by the City’s Self-Insurance
General Liability Internal Service Fund.
There were no liability claims in the past three years that exceeded the coverage limit.
Although, there is a claim that exceeds the self-insured retention of $1,000,000 and is
not covered under the City’s liability insurance plan. Refer to note 18d. for further
details.
Liability Claims
Claims up to $1,000,000 are paid from the City’s Self Insurance General Liability
Internal Service Fund. Payments for claims from $1,000,000 to the maximum limit
discussed above are covered by the excess liability coverage purchased by the City.
Any claims exceeding the maximum limit are covered by the Self Insurance General
Liability Internal Service Fund. The liability for these claims is recorded as part of long-
term obligations in the Self Insurance General Liability Fund and government-wide
financial statements. Liabilities include amounts incurred, but not reported.
217
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
9. RISK MANAGEMENT (Continued)
Workers’ Compensation Claims
Workers’ compensation claims of up to $1,000,000 per claim are paid from the Self
Insured Workers’ Comp Internal Service Fund. Excess workers’ compensation
coverage is purchased through the CSAC/Prism-Excess Insurance Authority.
Payments for claims from $1,000,000 to statutory limits are covered by CSAC/Prism-
Excess Insurance Authority.
The Self Insurance Workers’ Comp Internal Service Fund has a $19.6 million deficit at
year-end at the 55 percent confidence level. The City has established plans to help
reduce the deficit in this fund. This will be accomplished by additional transfers from
the General Fund, Proprietary funds, and other governmental funds in which
employees are charged over the next nine years.
Claims activity and liabilities relating to the current and prior year are (in thousands):
Workers'
Compensation General Liability Total
Balance June 30, 2019 26,630$ 8,396$ 35,026$
Additions 9,758 3,310 13,068
Reductions (6,782) (4,157) (10,939)
Net Increase (Decrease)2,976 (847) 2,129
Balance June 30, 2020 29,606 7,549 37,155
Additions 12,200 11,058 23,258
Reductions (7,012) (6,622) (13,634)
Net Increase (Decrease)5,188 4,436 9,624
Balance June 30, 2021 34,794$ 11,985$ 46,779$
218
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
10. INTERFUND TRANSACTIONS
a. Advances to/from Other Funds
The amounts at year-end were (in thousands):
There is a $1,363,000 advance from the LMIHAF Capital Projects Fund to the
Redevelopment Agency Private Purpose Trust Fund as of June 30, 2021 for Main
Pier property acquisitions prior to the dissolution of the Redevelopment Agency on
February 1, 2012. No set interest rates or fixed repayment terms have been
established.
Redevelopment
Agency Private
Purpose Trust
Advances from (Receivable):
Major Governmental Funds
LMIHAF Capital Projects 1,363$
Advances to
(Payable):
219
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
10. INTERFUND TRANSACTIONS (Continued)
b. Transfers In/Out
The amounts at year-end were (in thousands):
The following is a summary of the significant transfers:
$10,817,000 was transferred from the General Fund to Other Governmental
Funds for debt service payments of $1,371,000 and for infrastructure related
projects including road repairs, police facility repairs and enhancement,
equipment, and other capital improvement projects of $9,400,000.
$51,000 was transferred from the General Fund to the Refuse Enterprise Fund
to fund the senior citizen rate reduction on refuse charges.
$406,000 was transferred from the LMIHAF Fund to Other Governmental Funds
for debt service payments.p
$135,000 was transferred from the Grants Special Revenue Fund to the General
Fund for lost EMS revenue related to COVID-19 reimbursed by HHS Grant
Funds.
$16,000 was transferred from the 2014A Bond Project Fund to the Infrastructure
Fund to utilize bond funds on eligible Police Headquarters Modernization Project
costs.
$13,000 was transferred from the Hazmat Service Enterprise Fund to the
General Fund to cover administrative and overhead expenditures.
Transfers In
General
Fund
Grants
Special
Revenue
LMIHAF
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Hazmat
Service
Fund
Total
Transfers In
General Fund -$ 135$ -$ 400$ 535$ 13$ 548$
Grants Special Revenue - 1,271 - - 1,271 - 1,271
Other Governmental Funds 10,817 - 406 16 11,239 - 11,239
Total Governmental Funds 10,817 1,406 406 416 13,045 13 13,058
Refuse Fund 51 - - - 51 - 51
Total Enterprise Funds 51 - - - 51 - 51
Total Transfers Out 10,868$ 1,406$ 406$ 416$ 13,096$ 13$ 13,109$
Transfers Out
220
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS
Below is a schedule of changes in long-term governmental obligations for the year (in
thousands):
Governmental Activities:
June 30,
2020 Additions Retirements
June 30,
2021
Accrued
Interest
Due Within
One Year
Public Financing Authority:
2010(a) Lease Revenue Bonds 7,410$ -$ (7,410)$ -$ -$ -$
2011(a) Lease Revenue Bonds 15,725 - (15,725) - - -
2014(a) Lease Revenue Bonds 12,530 - (650) 11,880 138 665
2020(a) Lease Revenue Bonds - 4,835 - 4,835 36 -
2020(b) Lease Revenue Bonds - 14,440 (1,610) 12,830 25 1,515
Total Public Financing Authority 35,665 19,275 (25,395) 29,545 199 2,180
Other Long-Term Obligations:
Compensated Absences 12,633 5,971 (5,199) 13,405 - 4,432
Claims Payable 37,155 23,258 (13,634) 46,779 - 10,108
Pollution Remediation 2,000 - - 2,000 - -
LED Lighting Phase I 546 - (114) 432 2 119
I-Bank CLEEN Loan 2,171 - (289) 1,882 18 296
CEC Loan 2,588 - (131) 2,457 13 394
Pension Obligation Bonds - 341,501 - 341,501 2,101 10,859
Leases Payable 5,241 12,753 (5,241) 12,753 8 1,907
Total Other Long-Term Obligations 62,334 383,483 (24,608) 421,209 2,142 28,115
Total Long-Term Obligations -
Governmental Activities 97,999$ 402,758$ (50,003)$ 450,754$ 2,341$ 30,295$
221
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
a. Public Financing Authority
(1) 2010(a) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2010
Type of Debt Lease Revenue Bonds
Original Principal Amount $14,745,000
Security Lease with City
Interest Rates 2.0% to 5.0%
Interest Payment Dates March 1st, September 1st
Principal Payment Dates September 1st
Purpose of Debt Defease 1997 Leasehold Revenue Bonds
(Construct Pier Plaza and Purchase 800
MHz System) and 2000 Lease Revenue
Bonds (Capital Improvements and
defeasance of Emerald Cove Certificates of
Participation)
Bonds of $6,545,000 were advance refunded by the 2020(a) Lease
Revenue Bonds on September 1, 2020.
(2) 2011(a) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2011
Type of Debt Lease Revenue Bonds
Original Principal Amount $36,275,000
Security Lease with City
Interest Rates 2.0% to 5.0%
Interest Payment Dates March 1st, September 1st
Principal Payment Dates September 1st
Purpose of Debt Defease 2001(a) Leasehold Revenue
Bonds (Construct Sports Complex and
South Beach Phase II Improvements) and
2001(b) Lease Revenue Bonds (Defease
Civic Improvement Corporation Certificates)
Bonds of $13,570,000 were advance refunded by the 2020(b) Lease
Revenue Bonds on August 12, 2020. The 2011(a) Lease Revenue were
paid on September 1, 2021 but in substance defeased as of June 30, 2021.
222
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(3) 2014(a) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2014
Type of Debt Lease Revenue Bonds
Original Principal Amount $15,295,000
Security Lease with City
Interest Rates 3.0% to 5.0%
Interest Payment Dates March 1st, September 1st
Principal Payment Dates September 1st
Purpose of Debt Finance the construction of a new Senior
Center
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 665$ 411$ 1,076$
2023 685 384 1,069
2024 720 352 1,072
2025 750 319 1,069
2026 785 289 1,074
2027-2031 4,305 1,067 5,372
2032-2035 3,970 310 4,280
Total 11,880$ 3,132$ 15,012$
223
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(4) 2020(a) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2020
Type of Debt Lease Revenue Bonds
Original Principal Amount $4,835,000
Security Lease with City
Interest Rates 4.0% to 5.0%
Interest Payment Dates May 1st, November 1st
Principal Payment Dates May 1st
Purpose of Debt Defease 2010(a) Lease revenue Bonds
which Defeased 1997 Leasehold
Revenue Bonds (Construct Pier Plaza
and Purchase 800 MHZ system), 2000
Lease Revenue Bonds (Capital
Improvements and defeasance of
Emerald Cove Certificate of Participation)
Debt service requirements to maturity are (in thousands):
On August 12, 2020, the Public Financing Authority issued $4,835,000 of
2020 Series A Lease Revenue Bonds on behalf of the City. The bond
proceeds were used to advance refund the outstanding 2010 Series A Lease
Revenue Bonds. The 2020 Series A bonds bear fixed interest rates ranging
from 4.00 percent to 5.00 percent and have a final maturity date of May 1,
2032. The 2020 Series A bonds payments to escrow from net proceeds are
reported as other financing uses. The 2010 Series A bonds in the amount of
$6,545,000 were redeemed on September 1, 2020. The Public Financing
Authority in effect reduced its aggregate debt service payments by
approximately $2,118,000 over the next 12 years and obtained a net
economic gain (difference between the present values of the old and new
debt service payments) of $1,246,000.
Year Ending
June 30 Principal Interest Total
2022 -$ 223$ 223$
2023 - 223 223
2024 - 224 224
2025 - 224 224
2026 - 224 224
2027-2031 3,020 1,053 4,073
2032 1,815 73 1,888
Total 4,835$ 2,244$ 7,079$
224
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(5) 2020(b) Public Financing Authority Lease Revenue Bonds
Year of Issuance 2020
Type of Debt Lease Revenue Bonds
Original Principal Amount $14,440,000
Security Lease with City
Interest Rates .329% to 1.831%
Interest Payment Dates May 1st, November 1st
Principal Payment Dates May 1st
Purpose of Debt Defease 2011(a) Lease revenue Bonds
which Defeased 2001(a) Leasehold
Revenue Bonds (Construct Sports
Complex and South Beach Phase II
Improvements) and 2001(b) Lease
Revenue Bonds (Defeased Civic
Improvement Corporation Certificates)
Debt service requirements to maturity are (in thousands):
On August 12, 2020, the Public Financing Authority issued $14,440,000 of
2020 Series B Lease Revenue Bonds on behalf of the City. The bond
proceeds were used to advance refund the outstanding 2011 Series A Lease
Revenue Bonds. The 2020 Series B bonds bear fixed interest rates ranging
from 0.329 percent to 1.831 percent and have a final maturity date of May 1,
2030. The 2020 Series B bond payments to escrow from net proceeds are
reported as other financing uses. The 2011 Series A bonds in the amount of
$13,570,000 were paid on September 1, 2021 but in substance defeased as
of June 30, 2021. The Public Financing Authority in effect reduced its
aggregate debt service payments by approximately $4,533,000 over the next
10 years and obtained a net economic gain (difference between the present
values of the old and new debt service payments) of $1,738,000.
Year Ending
June 30 Principal Interest Total
2022 1,515$ 145$ 1,660$
2023 1,520 138 1,658
2024 1,530 129 1,659
2025 1,545 117 1,662
2026 1,560 103 1,663
2027-2030 5,160 186 5,346
Total 12,830$ 818$ 13,648$
225
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
b. Other Long-Term Obligations
(1) Compensated Absences
There is no repayment schedule to pay the compensated absences amount
of $13,405,000 relating to governmental operations. The General Fund
typically liquidates the vacation and sick leave liability.
(2) Claims Payable
There is no repayment schedule for the claims payable for governmental
activities of $46,779,000 described in Note 9. The City pays the claims upon
final settlement. The General Fund typically liquidates the claims payable
liability.
(3) Pollution Remediation
The City plans to remediate hazardous materials contamination of land
located within Huntington Central Park used as a gun range facility prior to
its close in 1997. The City is voluntarily planning to remediate the site in order
to use the area for park purposes. The cost of the gun range remediation is
estimated to be $2,000,000 and is reported as a long-term liability in the
government-wide financial statements. The liability was measured by
estimating a reasonable range of potential outlays and multiplying those
outlays by their probability of occurring.
(4) LED Lighting Phase I
Year of Issuance 2016
Type of Debt Leaseback from Capital One
Public Funding, LLC
Principal Amount Original $1,062,924
Security Loan Agreement with Capital One
Public Funding, LLC
Interest Rates Original 2.32%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt To purchase and upgrade street,
area and pole lighting to energy
efficient LED light sources
226
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
Debt service requirements to maturity are (in thousands):
(5) I-Bank CLEEN Loan
Year of Issuance 2016
Type of Debt CLEEN Loan from the California
Infrastructure and Economic
Development Bank (I-Bank)
Principal Amount Original $3,000,000
Security Edwards Fire Station
Interest Rates Original 2.32%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt To purchase and upgrade street
pole lighting to energy efficient
LED light sources
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 119$ 14$ 133$
2023 122 10 132
2024 126 5 131
2025 65 1 66
Total 432$ 30$ 462$
Year Ending
June 30 Principal Interest Total
2022 296$ 40$ 336$
2023 303 33 336
2024 310 26 336
2025 317 19 336
2026 324 11 335
2027 332 4 336
Total 1,882$ 133$ 2,015$
227
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(6) California Energy Commission (CEC) Loan
Year of Issuance 2016
Type of Debt Loan from the California Energy
Commission (CEC)
Principal Amount Original $3,000,000
Security Loan Agreement with CEC
Interest Rates Original 1.00%
Interest Payment Dates June 22nd and December 22nd
Principal Payment Dates June 22nd and December 22nd
Purpose of Debt To upgrade street pole lighting to
energy efficient LED light sources
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 394$ 34$ 428$
2023 266 20 286
2024 269 17 286
2025 272 13 285
2026 274 12 286
2027-2030 982 20 1,002
Total 2,457$ 116$ 2,573$
228
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(7) Pension Obligation Bonds
Year of Issuance 2021
Type of Debt Pension Obligation Bonds
Principal Amount Original $341,501,000
Interest Rates 0.221% to 3.376%
Interest Payment Dates June 15th and December 15th
Principal Payment Dates June 15th
Purpose of Debt Pay 85% of CalPERS UAL as of
the June 30, 2019 valuation report.
In June 2021, the City issued a Pension Obligation Bond to pay for 85
percent of its current unfunded pension liability with CalPERS.
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 10,859$ 10,290$ 21,149$
2023 12,637 8,511 21,148
2024 12,683 8,463 21,146
2025 12,768 8,384 21,152
2026 12,898 8,248 21,146
2027-2031 67,921 37,818 105,739
2032-2036 76,573 29,162 105,735
2037-2041 88,914 16,828 105,742
2042 46,248 2,919 49,167
Total 341,501$ 130,623$ 472,124$
229
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(8) Leases Payable
Year of Issuance 2021
Type of Debt Capital Leases
Principal Amount Various
Security Master Lease Agreement
Interest Rates 1.249% and 1.775%
Interest Payment Dates Semi-Annually
Principal Payment Dates Semi-Annually
Purpose of Debt Public Safety Equipment Financing
In June 2021, a new ten-year lease agreement was approved by City Council
in the amount of $12,753,130 to finance the replacement of a one fire engine,
one rescue boat, three helicopters. Additionally, the City refinanced its
existing capital leases into a single lease with a six-year term.
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 1,907$ 172$ 2,079$
2023 1,901 177 2,078
2024 1,930 149 2,079
2025 1,268 121 1,389
2026 1,022 100 1,122
2027-2031 4,725 248 4,973
Total 12,753$ 967$ 13,720$
230
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
c. Long-Term Obligations – Business-Type Activities
Below is a schedule of the long-term obligations of business-type activities (in
thousands):
(1) Compensated Absences
There is no repayment schedule for the compensated absences amount of
$1,426,000 relating to business-type activities. The balance for the
outstanding business-type compensated absences is predominately related
to the Water and Sewer funds.
June 30,
2020 Additions
Retirements
June 30,
2021
Accrued
Interest
Due Within
One Year
Compensated Absences 1,615$ 542$ (731)$ 1,426$ -$ 389$
Pension Obligation Bonds - 22,144 - 22,144 131 776
Total Long-Term Obligations -
Business-Type Activities 1,615$ 22,686$ (731)$ 23,570$ 131$ 1,165$
Long-Term Obligations - Business-Type Activities:
231
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
(2) Pension Obligation Bond
Year of Issuance 2021
Type of Debt Pension Obligation Bonds
Principal Amount Original $22,144,000
Interest Rates 0.221% to 3.376%
Interest Payment Dates June 15th and December 15th
Principal Payment Dates June 15th
Purpose of Debt Pay 85% of CalPERS UAL as of
the June 30, 2019 valuation report.
In June 2021, the City issued a Pension Obligation Bond to pay for 85
percent of its current unfunded pension liability with CalPERS.
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 776$ 647$ 1,423$
2023 888 535 1,423
2024 892 531 1,423
2025 897 527 1,424
2026 907 518 1,425
2027-2031 4,774 2,342 7,116
2032-2036 5,382 1,734 7,116
2037-2041 6,251 866 7,117
2042 1,377 46 1,423
Total 22,144$ 7,746$ 29,890$
232
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
11. LONG-TERM OBLIGATIONS (Continued)
d. Long-Term Conduit Debt Obligations
Below is a schedule of the conduit debt obligations for which the City is not liable in
any manner (in thousands):
June 30, 2020 Additions Retirements June 30, 2021
Community Facilities District No. 1990-1
Special Tax Refunding Bonds 170$ -$ (170)$ -$
Community Facilities District No. 2000-1
2013 Special Tax Refunding Bonds 9,675 - (625) 9,050
Community Facilities District No. 2002-1
Special Assessment Tax Bonds 3,945 - (160) 3,785
Community Facilities District No. 2003-1
2013 Special Tax Refunding Bonds 16,415 - (855) 15,560
Total Community Facilities Districts 30,205 - (1,810) 28,395
Residential Redevelopment Bonds 2,900 - (2,900) -
Total Obligations Not Recorded in
Financial Statements 33,105$ -$ (4,710)$ 28,395$
Community Facilities Districts:
233
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
12. CAPITAL ASSETS
a. Changes in Capital Assets
Capital asset activity for the year was (in thousands):
Governmental Activities
June 30,
2020 Additions Dispositions
June 30,
2021
Capital Assets, Not Depreciated:
Land 362,069$ 6,726$ -$ 368,795$
Construction in Progress 7,515 4,848 (3,779) 8,584
Total Capital Assets -Not Depreciated 369,584 11,574 (3,779) 377,379
Capital Assets Being Depreciated
Buildings 211,278 4,228 - 215,506
Machinery and Equipment 67,003 9,533 - 76,536
Infrastructure 434,072 17,704 (775) 451,001
Total Capital Assets Being Depreciated 712,353 31,465 (775) 743,043
Less Accumulated Depreciation:
Buildings (84,499) (4,885) - (89,384)
Machinery and Equipment (53,041) (3,912) - (56,953)
Infrastructure (229,638) (7,966) 775 (236,829)
Total Accumulated Depreciation (367,178) (16,763) 775 (383,166)
Total Depreciated - Net 345,175 14,702 - 359,877
Total Capital Assets 1,081,937 43,039 (4,554) 1,120,422
Total Accumulated Depreciation (367,178) (16,763) 775 (383,166)
Capital Assets of Governmental Activities - Net 714,759$ 26,276$ (3,779)$ 737,256$
234
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
12. CAPITAL ASSETS (Continued)
b. Depreciation Expense
Depreciation in governmental activities was charged to the following
functions/programs in the Statement of Activities (in thousands):
Business-Type Activities:
June 30,
2020 Additions Dispositions
June 30,
2021
Capital Assets, Not Depreciated:
Land 3,907$ -$ -$ 3,907$
Construction in Progress 442 1,340 - 1,782
Total Capital Assets -Not Depreciated 4,349 1,340 - 5,689
Capital Assets Being Depreciated
Buildings 100,082 - - 100,082
Machinery and Equipment 20,657 939 - 21,596
Infrastructure 145,961 3,566 (223) 149,304
Total Capital Assets Being Depreciated 266,700 4,505 (223) 270,982
Less Accumulated Depreciation:
Buildings (31,723) (2,512) - (34,235)
Machinery and Equipment (13,632) (1,178) - (14,810)
Infrastructure (82,909) (2,471) 223 (85,157)
Total Accumulated Depreciation (128,264) (6,161) 223 (134,202)
Total Depreciated - Net 138,436 (1,656) - 136,780
Total Capital Assets 271,049 5,845 (223) 276,671
Total Accumulated Depreciation (128,264) (6,161) 223 (134,202)
Capital Assets of Business Activities - Net 142,785$ (316)$ -$ 142,469$
Department:
City Manager 23$
Finance 30
Community Development 122
Fire 299
Information Services 25
Police 190
Community & Library Services 2,435
Library Services 334
Public Works 12,592
Internal Service Fund depreciation charged to functions 713
Total 16,763$
235
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
12. CAPITAL ASSETS (Continued)
Depreciation in business-type activities was charged to the following
functions/programs in the Statement of Activities (in thousands):
13. INVESTMENT IN JOINT VENTURES
The City participates in a firefighter training center called Central Net Operations
Authority (CNOA) through a joint powers agreement with the City of Fountain Valley.
The City of Huntington Beach records 76 percent of CNOA net assets as Joint
Venture Investments.
14. RELATED PARTY TRANSACTION
The City has entered into a housing loan and equity sharing agreement in the
principal sum of $1,510,000 with City Manager Oliver Chi in October 2019 to use as
funding for the purchase of a home within the City. The property is held as security
for repayment of the loan until it is paid, and will remain subject to the provisions of
the loan agreement until sold. When or if the property is sold, the City will receive
50% of the increase in the value of the home. This housing loan and equity sharing
agreement has a term of thirty (30) years. The balance as of the loan as of June 30,
2021 is $1,456,867.
Fund:
Water 3,986$
Sewer Service 2,153
Refuse 22
Total 6,161$
236
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
a. General Discussion
On December 29, 2011, the California Supreme Court upheld ABX1 26 that provided
for the dissolution of all redevelopment agencies in the State of California. This action
impacted the reporting entity of the City of Huntington Beach that previously had
reported a redevelopment agency within the reporting entity of the City as a blended
component unit.
ABX1 26 provides that upon dissolution of a redevelopment agency, either the city or
another unit of local government will agree to serve as the “successor agency” to hold
the assets until they are distributed to other units of state and local government. On
January 9, 2012, the City Council elected to become the Successor Agency for the
former Redevelopment Agency in accordance with ABX1 26 as part of City resolution
number 2012-01.
After enactment of the law, effective June 28, 2011, redevelopment agencies in the
State of California generally cannot enter into new projects, obligations or
commitments. Subject to the control of a newly established oversight board, remaining
assets can only be used to pay enforceable obligations in existence at the date of
dissolution (including the completion of any unfinished projects that were subject to
legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount
that is necessary to pay the estimated annual installment payments on enforceable
obligations of the former redevelopment agency until all enforceable obligations of the
prior redevelopment agency have been paid in full and all assets have been liquidated.
ABX1 26 directs the State Controller of the State of California to review the propriety
of any transfers of assets between redevelopment agencies and other public bodies
that occurred after January 1, 2011. If the public body that received such transfers is
not contractually committed to a third party for the expenditure or encumbrance of
those assets, the State Controller is required to order the available assets to be
transferred to the public body designated as of successor agency by ABX1 26.
237
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
b. Long-Term Debt
Below is a schedule of changes in long-term obligations of the Successor Agency for
the year (in thousands):
Successor Agency: June 30, 2020 Additions Retirements June 30, 2021
Accrued
Interest
Due Within
One Year
Bonds Payable
1999 Tax Allocation Refunding Bonds 1,935$ -$ (365)$ 1,570$ 33$ 380$
2002 Tax Allocation Bonds 4,215 - (800) 3,415 71 840
Total Bonds Payable 6,150 - (1,165) 4,985 104 1,220
Other Long-Term Obligations
Mayer DDA 1,854 - (600) 1,254 20 599
Bella Terra OPA (Parking)6,328 - (1,343) 4,985 - 1,343
Bella Terra AHA (Phase II)13,553 - (686) 12,867 - 686
CIM DDA (Parking & Infrastructure)5,567 - (288) 5,279 276 308
CIM DDA (Additional Parking)364 - (13) 351 26 15
Total Other Long-Term Obligations 27,666 - (2,930) 24,736 322 2,951
Total Long-Term Obligations 33,816$ -$ (4,095)$ 29,721$ 426$ 4,171$
238
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
(1) 1999 Tax Allocation Refunding Bonds
Year of Issuance 1999
Type of Debt Tax Allocation Refunding Bonds
Original Principal Amount $10,835,000
Security Tax Increment
Interest Rates 3.00% to 5.05%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt Prepay Agency’s 1992 Loans to
Public Financing Authority
Debt service requirements to maturity are (in thousands):
Year Ending
June 30 Principal Interest Total
2022 380$ 69$ 449$
2023 405 49 454
2024 425 29 454
2025 360 9 369
Total 1,570$ 156$ 1,726$
239
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
(2) 2002 Tax Allocation Refunding Bonds
Year of Issuance 2002
Type of Debt Tax Allocation Refunding Bonds
Original Principal Amount $20,900,000
Security Tax Increment
Interest Rates 2.00% to 5.00%
Interest Payment Dates February 1st and August 1st
Principal Payment Dates August 1st
Purpose of Debt Prepay Agency’s 1992 Loans to
Public Financing Authority and
fully defease 1992 Public
Financing Authority bonds
Debt service requirements to maturity are (in thousands):
Pledged Revenues
The Successor Agency will repay a total of $5,480,000, principal and interest,
for the outstanding 1999 and 2002 Tax Allocation Refunding Bonds as of
June 30, 2021 from semi-annual Redevelopment Property Tax Trust Fund
(RPTTF) revenue allocations.
The 1999 and 2002 Tax Allocation Refunding Bonds are not a debt of the
City of Huntington Beach, the State of California, nor any of its political
subdivisions, and neither the City, the State nor any of its political subdivision
is liable therefore, not in any event shall the bonds be payable out of funds
or properties other than those of the Redevelopment Agency as set forth in
the bond indenture.
Year Ending
June 30 Principal Interest Total
2022 840$ 150$ 990$
2023 875 107 982
2024 920 62 982
2025 780 20 800
Total 3,415$ 339$ 3,754$
240
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
(3) Mayer Disposition and Development Agreement
In fiscal year 1996-97, the Agency entered into a disposition and
development agreement (DDA) with Robert Mayer Corporation (Corporation)
concerning additional development adjacent to the Waterfront Hotel. Under
the agreement, the Corporation would advance payments for the project
costs with the Agency reimbursing up to $16,750,000 of the costs. As of year-
end, the Successor Agency obligation under the agreement amounted to
$1,254,000. Project-generated revenues as available will repay these
amounts over the time needed to fully amortize the advance. The interest
rate of this obligation is 6.32%. The DDA has been approved as an
enforceable obligation by the DOF.
(4) Bella Terra Parking Structure
In fiscal year 2005-06, the Agency entered into an owner participation
agreement with Bella Terra Associates, LLC (formerly Huntington Center
Associates, LLC). Under the agreement, the Corporation would construct
various public improvements, including a parking structure, which would then
be deeded to the City. The Agency would reimburse $15,000,000 of the costs
of the public improvements. As of year-end, the Successor Agency obligation
under the agreement amounted to $4,985,000. Project-generated revenues
as available will repay these amounts over the time needed to fully amortize
the advance. The interest rate of this obligation is 6.94%. The agreement has
been approved as an enforceable obligation by the DOF.
(5) Bella Terra Phase II
In fiscal year 2010-11, the Agency entered into an affordable housing
agreement with BTDJM Phase II Associates (DJM). The agreement would
facilitate the construction of a 467 unit mixed use project, including 43
moderate units and 28 very low units. Under the terms of the agreement, the
Agency would reimburse DJM for the construction of the affordable units up
to $17,000,000. DJM has transferred the site to UDR, and as of year-end,
the Successor Agency obligation under the agreement amounted to
$12,867,000. Reimbursement of the affordable units will be based upon the
site-generated tax increment for the mixed use project as well as the 20%
housing fund from the site-generated Bella Terra I. The interest rate of this
obligation is 4.00%. The agreement has been approved as an enforceable
obligation by the DOF.
241
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
(6) CIM/Huntington Disposition and Development Agreement – Strand
Parking Structure and Infrastructure
Year of Issuance 2009
Type of Debt Loan from CIM Group, LLC
Original Principal Amount $7,900,000
Security Tax Increment
Interest Rates 7.00%
Interest Payment Dates September 30th
Principal Payment Dates September 30th
Purpose of Debt Strand Parking Structure and
Infrastructure
As of year-end, the Successor Agency obligation under the agreement
amounted to $5,279,000. Repayment shall be made solely from
Redevelopment Property Tax Trust Fund (RPTTF) revenues received by the
Huntington Beach Redevelopment Successor Agency Private Purpose Trust
Fund in the amounts included in the Oversight Board approved Recognized
Obligation Payment Schedule (ROPS) to the County Auditor Controller
(CAC) and the Department of Finance (DOF). The DDA has been approved
as an enforceable obligation by the DOF.
242
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
(7) CIM/Huntington Disposition and Development Agreement – Additional
Strand Parking
Year of Issuance 2009
Type of Debt Loan from CIM Group, LLC
Original Principal Amount $950,000
Security Tax Increment
Interest Rates 10.00%
Interest Payment Dates September 30th
Principal Payment Dates September 30th
Purpose of Debt Additional Strand Parking
Structure and Infrastructure
As of year-end, the Successor Agency obligation under the agreement
amounted to $351,000. Repayment shall be made solely from
Redevelopment Property Tax Trust Fund (RPTTF) revenues received by the
Huntington Beach Redevelopment Successor Agency Private Purpose Trust
Fund in the amounts included in the Oversight Board approved Recognized
Obligation Payment Schedule (ROPS) to the County Auditor Controller
(CAC) and the Department of Finance (DOF). The DDA has been approved
as an enforceable obligation by the DOF.
243
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
15. SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
(Continued)
c. Advances from the City Housing Fund
The Successor Agency has recorded advances from the City Housing Fund totaling
$1,363,000 from the Low-Income Housing Fund to the Redevelopment Agency
Capital Projects Fund for Main Pier property acquisitions.
16. COMMITMENTS AND CONTINGENCIES
a. Legal Actions
There are legal actions pending against the City resulting from normal operations.
In the opinion of management and the City Attorney, the financial resolution of these
actions should not have a significant impact on these financial statements.
b. Sales Tax Sharing Agreements
City Council has agreed to provide sales tax rebates to various companies, based
upon various factors such as increased job-base or new sales tax to the City. The
sales tax rebates serve to attract and retain various companies in the City of
Huntington Beach. The City of Huntington Beach has four sales tax sharing
agreements that extend until 2024, 2033, and 2038. Sales tax rebates totaled
$1,097,750 for the year ended June 30, 2021. Sales tax sharing agreements include
an agreement with Surf City Auto Group II, Inc. wherein the sales tax sharing is a
50%/50% Auto Group/City split with base sales of $1,681,797 (Jeep sales for 2016)
and increases by 1% each year. The other sales tax sharing agreements are with
Pinnacle Petroleum through 2024, with base sales of $100,000, and McKenna
Subaru Huntington Beach through 2033 with a 45%/55% McKenna/City split with
base sales of $150,800.
244
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
16. COMMITMENTS AND CONTINGENCIES (Continued)
c. Cooperation and Owner Participation Agreements
On September 2, 2003, the Redevelopment Agency Approved a Cooperation
Agreement Regarding Capital Improvements in the Southeast Coastal
Redevelopment Project with the City. This agreement commits the Redevelopment
Agency to reimburse the City for a number of capital improvement projects to be
undertaken as part of the Five Year Capital Improvement Program in the Southeast
Redevelopment project area starting in FY 2003/04 as they are undertaken. The
Successor Agency received its Finding of Completion notice from the Department
of Finance on May 13, 2014. The Oversight Board (to the Successor Agency) have
approved and reauthorization of the loans between the City and former
Redevelopment Agency in FY 16/17. The State Department of Finance has denied
the validity of the loans and the City has filed suit against the State.
d. Redevelopment Successor Agency Debt to City
The City has advanced money to the Redevelopment Agency for major capital
improvements, economic development projects, and operations. In January 2011,
the City Council and Redevelopment Agency Board approved a revised
Cooperation Agreement, which included a Promissory Note that memorialized
indebtedness previously incurred by the Agency and owed to the City from a series
of loans made from the City to the Agency from 1982 to present. The City and
Successor Agency have not recorded the advances in the accompanying financial
statements due to uncertainties related to Health and Safety Code Section 34191.4,
which establishes certain restrictions and limitations on the repayment of city-
agency loans. In accordance with Health and Safety Code Section 34191.4(b)(3),
all other loans between the city and former Redevelopment Agency will begin to be
repaid, at a 3% interest rate, as determined by SB 107 upon approval of the
Oversight Board and the Department of Finance. The Oversight Board (to the
Successor Agency) have approved and reauthorization of the loans between the
City and former Redevelopment Agency in FY 16/17. The State Department of
Finance has denied the validity of the loans and the City has filed suit against the
State.
245
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
16. COMMITMENTS AND CONTINGENCIES (Continued)
Below is a schedule of the activity for the year (in thousands):
e. Low Moderate Income Housing Asset Fund Debt to City
In May 2009, a Promissory Note was issued by the Redevelopment Agency to the
City to pay for outstanding bonded debt related to the Emerald Cove Housing
Project. The note is secured by a pledge of Set-Aside Funds. Based on the
Promissory Note, the interest rate for the loan is 0% and the loan was scheduled to
be repaid by 2021. The City has not recorded the advances in the accompanying
financial statements due to uncertainties surrounding ABX1 26 and Assembly Bill
1484 and related litigation (see note 16f). Below is a schedule of the activity for the
year (in thousands):
June 30,
2020 Additions Reductions
June 30,
2021
General Fund
Direct Advances 2,312$ -$ -$ 2,312$
Indirect Advances 6,567 - - 6,567
Land Sales 32,833 - - 32,833
Interest 30,480 404 - 30,884
Total General Fund 72,192 404 - 72,596
Sewer Fund
Direct Advances 298 2 - 300
Deferred Development Fees 186 1 - 187
Total Sewer Fund 484 3 - 487
Drainage Fund
Direct Advances 720 4 - 724
Deferred Development Fees 199 1 - 200
Total Drainage Fund 919 5 - 924
Park Acquisition and Development Fund
Direct Advances 5,927 33 - 5,960
Deferred Development Fees 440 2 - 442
Total Park Acquisition and Development Fund 6,367 35 - 6,402
Water Fund
Direct Advances 4,461 25 - 4,486
Total Water Fund 4,461 25 - 4,486
Total All Funds 84,423$ 472$ -$ 84,895$
June 30,
2020 Additions Reductions
June 30,
2021
General Fund
Emerald Cove 3,245$ -$ -$ 3,245$
246
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
16. COMMITMENTS AND CONTINGENCIES (Continued)
f. Successor Agency Litigation
Until 2012, the Huntington Beach Redevelopment Agency existed and received
property tax increment from property within the “City Redevelopment Project Area.”
In 2012, the State Legislature dissolved all redevelopment agencies, and all tax
increment was returned to the County for payment to other taxing entities. The only
exception was that tax increment would continue to be paid to the Successor
Agency to the City Redevelopment Agency to pay any pre-dissolution, legally
binding obligations established prior to the dissolution of the agencies. Further, the
City transferred the former Redevelopment Agency’s housing obligations to the
Huntington Beach Housing Authority pursuant to Health and Safety Code section
34176.
The Successor Agency contended that its payments to retire the former
Redevelopment Agency’s portion of the 2010 Lease Revenue Bonds used to
finance the Emerald Cove low income housing project were such an obligation. The
annual payment on these bonds is approximately $400,000 a year. The amount that
the City contends to be due to pay the former Redevelopment Agency’s share of
the bonds is $3,245,000.
The Successor Agency also contended that the 2012 Pacific City Development
Agreement was a pre-dissolution, legally binding obligation. Pacific City is a
development project that was conditioned on providing 77 affordable housing units,
of which the Successor Agency now was obliged to construct 26 units off-site, at a
cost of $6,500,000. This would not be a City General Fund obligation.
The State Department of Finance rejected the City’s “Recognized Obligation
Payment Schedule” (“ROPS”) to establish these two obligations as entitled to be
funded through tax increment. In response, the City sued the Department of
Finance.
All post-redevelopment matters are being heard in Sacramento before a select
panel of judges. On January 29, 2014, the Superior Court held that the Emerald
Cove Bonds and the Pacific City housing were not preexisting Authority obligations
payable with tax increment. The Successor Agency appealed the judgment. The
appellate decision was received in 2018 and the Successor Agency lost the appeal.
The Housing Authority is reviewing options on meeting the affordable housing
requirements for Pacific City with other projects. The City itself does not require a
reserve for either case.
247
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
16. COMMITMENTS AND CONTINGENCIES (Continued)
In addition, as stated above in section (c) and (d), the City of Huntington Beach
has filed suit against the State of California regarding the Department of Finance’s
denial of loans which were between the Redevelopment Agency and the City of
Huntington Beach.
17. OTHER INFORMATION
a. Fund and Accumulated Deficits
The following funds have total fund deficits at year-end (in thousands):
The Self Insurance Workers’ Comp fund has a deficit due to increases in statutory
benefits related to workers’ comp claims, rising healthcare costs, and the
implementation of GASB Nos. 68 and 75. The Self Insurance General Liability fund
has a deficit due to increases in claims judgement, cost of litigation and rising
number of lawsuits against the City. As such, the City set aside $3,650,000 in
litigation reserve for general liability claims in the General Fund.
The City has established plans to reduce and eliminate the deficits in these funds.
Additional transfers will be made over the next ten to twenty years from the General
Fund, Proprietary funds, and other governmental funds to address the deficit in the
Self Insurance Workers’ Comp Internal Service Fund.
18. SUBSEQUENT EVENTS
a. American Rescue Plan Act of 2021 (ARPA)
As a response to COVID-19, the federal government passed the American Rescue
Plan Act of 2021 to help combat the disease outbreak and its impacts. Enacted
March 11, 2021, the ARPA bill provides $1.9 trillion in pandemic relief and
authorized $350 billion in state and local government financial assistance. Through
the ARPA bill, the City is eligible to receive $29.6 million in funding for allowable
expenditures. ARPA funding is provided in two tranches covering 50 percent each
tranche. In fiscal year 2020/21, the City received its first tranche in May 2021 of
$14.8 million and will be receiving the remaining $14.8 million one year later.
Internal Service Fund:
Self Insurance Workers' Comp 19,584$
Self Insurance General Liability 1,834$
248
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
18. SUBSEQUENT EVENTS (Continued)
A three-person City Council ARPA subcommittee was established in June 2021
to develop and review a list of potential projects. On September 7, 2021, City
Council approved a spending plan which addresses both immediate, current
needs of the City and transformative, “Plan for the Future” projects with long-term
community impacts including Downtown Revitalization Improvements, Police
Technology Infrastructure Improvements, and a comprehensive Homeless
Response Plan.
b. Orange County Oil Spill Response
On October 2, 2021, the United State Coast Guard notified the City of a possible
oil spill in the area of Huntington Beach, which was classified as a major spill later
in the day. The oil spill was originally estimated to be 5.8 nautical miles long,
running from the Huntington Beach Pier down to Newport Beach. Given the oil
spill impacts, a decision was made by the City and State to close the ocean from
the Pier to the Santa Ana River jetty. Additionally, a decision was made by City
leadership to cancel the third day of the Pacific Airshow on October 3 rd. The oil
spill was declared a State emergency by the Governor on October 4th, with a local
emergency declaration following the same day. The oil spill has significantly
affected the City, with substantial ecological impacts occurring at the beach and
at the Huntington Beach Wetlands. In response, Huntington Beach Fire and
Marine Safety personnel were deployed to implement oil containment efforts.
The U.S. Coast Guard, acting as the lead agency, formed an Incident
Management Team (comprised of federal, state and regional agencies) to
respond to the oil spill incident and coordinate clean-up efforts. A Unified
Command Team that includes the U.S. Coast Guard, California Department of
Fish and Wildlife, and Amplify Energy Corporation has also been established to
investigate the oil spill incident. As of October 11, 2021, both City and State
beaches have reopened after water quality testing results showed non-
detectable amounts of oil associated toxins. The City continues to actively
monitor the water quality so that any further impacts may be avoided and safety
measures deployed as needed.
The financial impacts of the oil spill are still being evaluated at this time.
249
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
18. SUBSEQUENT EVENTS (Continued)
c. Community Choice Energy (CCE)
The City of Irvine began efforts to create a regional Community Choice Energy
(CCE) program known as the Orange County Power Authority (OCPA), which
would allow local governments to purchase energy on behalf of their communities,
while still receiving transmission and distribution service from their existing utility
provider. On December 10, 2020, Huntington Beach voted to join the OCPA as a
founding member, along with the cities of Buena Park and Fullerton. There is no
direct fiscal impact to join OCPA. Per the Joint Powers Agreement with OCPA,
member agencies are not required to make any financial contributions, with the
City of Irvine financing all initial start-up costs. Currently, commercial service is
planned to begin April 2022, with residential service following in October 2022.
d. Kennedy Commission v. Huntington Beach
The Kennedy Commission case arises from an amendment to City’s Beach and
Edinger Corridors Specific Element Plan to limit the development of multifamily
housing. The case, filed by the Kennedy Commission in July 2015 stating that the
amendment was in violation of California’s Housing Element laws, was tried in
Superior Court and ruled in favor of the Plaintiff. The City appealed the trial court
decision and prevailed upon appeal. The Kennedy Commission then appealed
the decision with the Supreme Court, which upheld the Court of Appeal’s decision
in favor of the City. In February 2020, the City adopted a revised Housing Element
to comply with clarifying language in Senate Bill 1333 regarding the applicability
of key provisions of state planning and zooming laws to charter cities which was
certified by the California Department of Housing and Community Development
as compliant with Housing Element Law. In response, the Kennedy Commission
requested its remaining claims against the City be dismissed and filed a motion
for attorney’s fees. In July 2021, the Superior Court awarded the Kennedy
Commission $3.5 million in attorney’s fees, which is currently under appeal.
19. PRIOR PERIOD ADJUSTMENTS
During the fiscal year ended June 30, 2021, the City adopted new accounting
guidance by implementing the provisions of GASB Statement No. 84, Fiduciary
Activities, which establishes criteria for identifying and reporting fiduciary
activities. The implementation of this change in accounting principles has resulted
in altering the presentation of the financial statements as the City is no longer
required to report the following three funds: General Deposit, Central Net
Operation and West Orange County Water Board. The implementation also
resulted in splitting the Parking Structure Fiduciary Fund into two separate funds,
the Bella Terra Parking Structure Custodial Fund, and the Strand Parking Fund.
250
City of Huntington Beach
Notes to Financial Statements
For the Year Ended June 30, 2021
19. PRIOR PERIOD ADJUSTMENTS (Continued)
The implementation of the Statement required the City to make prior period
adjustments as shown below (in thousands):
Statement
of Activities
Statement of
Changes in Fiduciary
Net Position
Governmental
Activities Fiduciary Activities
Beginning net position/fund
balance, as previously reported $ 478,901 $ -
Implementation of GASB 84 5,747 6,586
Beginning net position/fund
balance, as restated $ 484,648 $ 6,586
251
REQUIRED SUPPLEMENTARY INFORMATION
252
THIS PAGE INTENTIONALLY LEFT BLANK
253
City of Huntington Beach
Notes to Required Supplementary Information
For the Year Ended June 30, 2021
Budgetary Information
The City Council must annually adopt a budget by June 30 of the prior fiscal year. The budgeted
expenditures become the appropriations to the various departments. The budget includes
estimates for revenue that, along with the appropriations, compute the budgetary fund balance.
The appropriated budget covers substantially all governmental fund expenditures with the
exception of capital improvement projects (capital projects funds) carried forward from prior
years, which constitute a legally authorized non-appropriated budget. The City Council may
amend the budget at any time. The City Manager may transfer funds from between object
purposes (personal services, operating expenditures, or capital outlay expenditures) within the
same department without changing the total departmental budget. Department heads, with the
Chief Financial Officer’s approval, may transfer funds from like object categories of the same
department. The City Council must approve any changes to departmental budgets. Expenditures
may not exceed appropriations at the departmental level. All unused appropriations lapse at
year-end. During the year, the City Council made several supplemental appropriations which
included carryovers of prior year encumbrances, all of which were within available fund balance
and estimated revenue amounts.
The City Council adopts governmental fund budgets consistent with generally accepted
principles as legally required. There are no significant non-budgeted financial activities.
Revenues for special revenue funds are budgeted by entitlements, grants and estimates of
future development and economic growth. Expenditures and transfers are budgeted based upon
available financial resources.
On or before February 28th of each year, each department submits data to the City Manager for
budget preparation. Staff prepares the budget by fund, function, and activity. The budget
includes information on past years, current year estimates and requested appropriations for the
next fiscal year. Before May 1st, the City Council receives the proposed budget. The City Council
holds public hearings and may amend the budget by a majority vote. Changes to the budget
must be within the available revenues and reserves.
These financial schedules show budgetary data for the General, Grants Special Revenue,
LMIHAF Capital Projects, and Pension Liability Debt Service Fund. The original budget, revised
budget, actual expenditures, and variance amounts are shown.
The City uses an encumbrance system as an aid in controlling expenditures. When the City
issues a purchase order for goods or services, it records an encumbrance until the vendor
delivers the goods or performs the service. At year-end, the City reports all outstanding
encumbrances as restricted, committed, or assigned fund balance in governmental fund types.
The City reappropriates these encumbrances into the new fiscal year.
The following pages present schedules of budget to actual comparison of the General, Grants
Special Revenue, LMIHAF Capital Projects and Pension Liability Debt Service Fund’s
Revenues, and Expenditures and Changes in Fund Balance (in thousands).
254
REVENUES Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Property Taxes 94,350$ 91,708$ 91,708$ -$
Sales Taxes 39,227 47,676 47,676 -
Utility Taxes 16,605 18,374 18,374 -
Other Taxes 12,416 18,428 18,428 -
Licenses and Permits 7,358 7,805 7,805 -
Fines, Forfeitures and Penalties 3,282 4,619 4,619 -
Use of Money and Property 14,500 14,183 16,196 2,013
Intergovernmental 3,138 9,881 9,967 86
Charges for Current Service 25,326 22,560 21,878 (682)
Other 979 1,875 2,001 126
Total Revenues 217,181 237,109 238,652 1,543
EXPENDITURES
Current:
City Council 389 404 397 7
City Manager 4,075 3,873 3,867 6
City Treasurer 280 319 319 -
City Attorney 2,980 3,103 2,938 165
City Clerk 988 1,080 1,068 12
Finance 6,054 6,529 6,025 504
Community Development 9,088 9,675 8,920 755
Fire 49,994 57,003 57,002 1
Information Services 7,341 7,248 6,991 257
Police 82,267 89,440 89,440 -
Community Services 8,929 9,910 7,708 2,202
Library Services 5,259 5,706 5,150 556
Public Works 26,361 24,411 24,116 295
Debt Service:
Principal 1,861 1,861 1,723 138
Interest 194 194 182 12
Total Expenditures 206,060 220,756 215,846 4,910
Excess of Revenues Over Expenditures 11,121 16,353 22,806 6,453
OTHER FINANCING SOURCES (USES)
Transfers In 1,433 1,581 548 (1,033)
Transfers Out (11,426) (10,868) (10,868) -
Total Other Financing Sources (Uses)(9,993) (9,287) (10,320) (1,033)
Net Change In Fund Balance 1,128 7,066 12,486 5,420
Fund Balance - Beginning of Year 80,088 80,088 80,088 -
Cumulative Effects of Changes in
Accounting Principles - - 2,035 2,035
Fund Balance - Beginning of Year as Restated 80,088 80,088 82,123 2,035
Fund Balance - End of Year 81,216$ 87,154$ 94,609$ 7,455$
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
General Fund
See Accompanying Notes to Required Supplementary Information 255
REVENUES Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ 6$ 222$ 216$
Intergovernmental 3,100 16,443 18,075 1,632
Total Revenues 3,100 16,449 18,297 1,848
EXPENDITURES
Current:
City Manager 6 5,530 5,453 77
City Clerk - 8 8 -
Finance - 18 18 -
Community Development 1,573 14,633 8,450 6,183
Fire - 1,919 1,880 39
Information Systems - 89 64 25
Police 1,039 3,547 2,141 1,406
Community Services 258 675 553 122
Library Services 70 239 233 6
Public Works 809 6,148 1,569 4,579
Total Expenditures 3,755 32,806 20,369 12,437
Excess of Revenues Over (Under)
Expenditures (655) (16,357) (2,072) 14,285
OTHER FINANCING USES
Transfers In - 1,271 1,271 -
Transfers Out - (1,399) (1,406) (7)
Total Other Financing Sources (Uses)- (128) (135) (7)
Net Change In Fund Balance (655) (16,485) (2,207) 14,278
Fund Balance - Beginning of Year 4,561 4,561 4,561 -
Fund Balance - End of Year 3,906$ (11,924)$ 2,354$ 14,278$
(In Thousands)
Grants Special Revenue
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
See Accompanying Notes to Required Supplementary Information 256
LMIHAF Capital Projects Fund
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property 380$ 380$ 964$ 584$
EXPENDITURES:
Community Development 334 6,579 6,421 158
Excess of Revenues Over (Under) Expenditures 46 (6,199) (5,457) 742
OTHER FINANCING SOURCES (USES):
Transfers Out (406) (406) (406) -
Total Other Financing Sources (Uses) (406) (406) (406) -
Net Change in Fund Balance (360) (6,605) (5,863) 742
Fund Balance - Beginning of Year 9,485 9,485 9,485 -
Fund Balance - End of Year 9,125$ 2,880$ 3,622$ 742$
-
Pension Liability Debt Service Fund
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Property Taxes -$ 8,250$ 8,250$ -$
Use of Money and Property - 300 300 -
Charges for Current Service - 1,493 1,493 -
Total Revenues - 10,043 10,043 -
EXPENDITURES:
Current:
City Council - 647 646 1
City Manager - 6,294 6,284 10
City Treasurer - 519 518 1
City Attorney - 4,784 4,776 8
City Clerk - 1,737 1,734 3
Finance - 9,803 9,788 15
Community Development - 14,514 14,492 22
Fire - 89,896 89,773 123
Information Systems - 11,375 11,358 17
Police - 141,052 140,857 195
Community Services - 12,542 12,523 19
Library Services - 8,380 8,367 13
Public Works - 39,238 39,177 61
Total Expenditures - 340,781 340,293 488
Excess of Revenues Over (Under) Expenditures - (330,738) (330,250) 488
OTHER FINANCING SOURCES (USES):
Proceeds of Long-Term Debt - 340,435 340,435 -
Issuance of Long-Term Debt - (453) (453) -
Issuance Discount - (649) (649) -
Total Other Financing Sources (Uses) - 339,333 339,333 -
Net Change in Fund Balance - 8,595 9,083 488
Fund Balance - Beginning of Year 7,860 7,860 7,860 -
Fund Balance - End of Year 7,860$ 16,455$ 16,943$ 488$
CITY OF HUNTINGTON BEACH
(In Thousands)
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
See Accompanying Notes to Required Supplementary Information 257
Measurement Period 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14
Total Pension Liability
Service cost 7,779$ 8,327$ 8,314$ 8,084$ 7,436$ 7,102$ 7,263$
Interest on total pension liability 41,058 40,150 38,769 37,749 37,194 35,653 34,412
Differences between expected and actual experience (6,087) (183) (2,042) (9,148) 1,072 (2,900) -
Changes in assumptions - - (3,634) 30,762 - (8,565) -
Benefit payments, including refunds of employee contributions (30,321) (28,508) (26,685) (25,312) (24,316) (23,377) (22,444)
Net change in total pension liability 12,429 19,786 14,722 42,135 21,386 7,913 19,231
Total pension liability - beginning 591,598 571,812 557,090 514,955 493,569 485,656 466,425
Total pension liability - ending (a)604,027$ 591,598$ 571,812$ 557,090$ 514,955$ 493,569$ 485,656$
Plan Fiduciary Net Position
Contributions - employer 16,879$ 14,816$ 13,495$ 12,316$ 10,982$ 9,747$ 9,066$
Contributions - employee 3,630 3,779 3,649 3,869 3,736 3,790 3,909
Investment income 21,485 27,288 32,963 40,328 1,856 8,230 56,429
Administrative Expense (609) (296) (614) (536) (226) (418) (472)
Benefit payments (30,321) (28,508) (26,685) (25,312) (24,316) (23,377) (22,444)
Plan to Plan Resource Movement - (13) 1 - - --
Other - 1 (1,166) - - 2 -
Net change in plan fiduciary net position 11,064 17,067 21,643 30,665 (7,968) (2,026) 46,488
Plan fiduciary net position - beginning 432,522 415,455 393,812 363,147 371,115 373,141 326,653
Plan fiduciary net position - ending (b)443,586$ 432,522$ 415,455$ 393,812$ 363,147$ 371,115$ 373,141$
Net pension liability - beginning 159,076 156,357 163,278 151,808 122,454 112,515 139,771
Net pension liability - ending (a)-(b)160,441$ 159,076$ 156,357$ 163,278$ 151,808$ 122,454$ 112,515$
Plan fiduciary net position as a percentage of the
total pension liability 73.44% 73.11% 72.66% 70.69% 70.52% 75.19% 76.83%
Covered payroll 45,952$ 45,419$ 45,431$ 44,848$ 44,365$ 44,233$ 41,142$
Net pension liability as a percentage of covered
payroll 349.15% 350.24% 344.16% 364.07% 342.18% 276.84% 273.48%
Notes to Schedule:
* Fiscal year 2013/14 was the first year of implementation, therefore only seven years are shown.
* For covered employee payroll, the measurement period of July 1, 2019 to June 30, 2020 was used.
Benefit changes: the figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019
valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not
included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Changes in assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS
Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate
reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5
percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on
the 7.5 percent discount rate.
City of Huntington Beach
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios During the Measurement Period
(in Thousands)
Last Ten Fiscal Years*
CalPERS City Miscellaneous Plan - 99
258
City of Huntington Beach
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios During the Measurement Period
(in Thousands)
Measurement Period 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14
Total Pension Liability
Service cost 13,226$ 13,644$ 13,509$ 13,657$ 12,159$ 11,119$ 11,096$
Interest on total pension liability 54,597 53,048 51,223 49,350 48,390 46,160 44,246
Differences between expected and actual experience (4,721) (1,220) 2,584 (10,819) 2,678 (820) -
Changes in assumptions - - (3,657) 40,352 - (11,054) -
Benefit payments, including refunds of employee contributions (41,247) (38,958) (37,128) (34,222) (32,116) (30,535) (29,540)
Net change in total pension liability 21,855 26,514 26,531 58,318 31,111 14,870 25,802
Total pension liability - beginning 782,326 755,812 729,281 670,963 639,852 624,982 599,180
Total pension liability - ending (a)804,181$ 782,326$ 755,812$ 729,281$ 670,963$ 639,852$ 624,982$
Plan Fiduciary Net Position
Contributions - employer 25,848$ 23,063$ 21,058$ 20,629$ 18,703$ 17,791$ 15,152$
Contributions - employee 4,355 4,337 4,164 4,570 4,058 4,110 3,850
Investment income 25,784 32,776 39,336 48,413 2,144 9,661 66,805
Administrative Expense (731) (355) (736) (640) (270) (497) (555)
Benefit payments (41,247) (38,958) (37,128) (34,222) (32,116) (30,535) (29,540)
Net Plan to Plan Resource Movement - 13 (3) - (29) - -
Other - 1 (1,398) - - - -
Net change in plan fiduciary net position 14,009 20,877 25,293 38,750 (7,510) 530 55,712
Plan fiduciary net position - beginning 518,644 497,767 472,474 433,724 441,234 440,704 384,992
Plan fiduciary net position - ending (b)532,653$ 518,644$ 497,767$ 472,474$ 433,724$ 441,234$ 440,704$
Net pension liability - beginning 263,682 258,045 256,807 237,239 198,618 184,278 214,188
Net pension liability - ending (a)-(b)271,528$ 263,682$ 258,045$ 256,807$ 237,239$ 198,618$ 184,278$
Plan fiduciary net position as a percentage of the
total pension liability 66.24% 66.30% 65.86% 64.79% 64.64% 68.96% 70.51%
Covered payroll 43,783$ 43,684$ 43,371$ 43,283$ 42,619$ 42,252$ 38,397$
Net pension liability as a percentage of covered
payroll 620.17% 603.61% 594.97% 593.32% 556.65% 470.08% 479.93%
Notes to Schedule:
* Fiscal year 2013/14 was the first year of implementation, therefore only seven years are shown.
* For covered employee payroll, the measurement period of July 1, 2019 to June 30, 2020 was used.
Changes in assumptions: None in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience
Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65
percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of
administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent
discount rate.
Benefit changes: the figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2019
valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2019 valuation date are not included
in the figures above, unless the liability impact is deemed to be material by the plan actuary.
Last Ten Fiscal Years*
CalPERS City Safety Plan - 100
259
Total Pension Liability 2020-21 2019-20 2018-19 2017-18** 2016-17 2015-16 2014-15 2013-14
Service cost 350$ 338$ 398$ 344$ 487$ 552$ 495$ 544$
Interest on total pension liability 4,292 3,954 3,990 2,964 3,976 3,945 3,919 3,828
Differences between expected and actual experience - 4,594 - (794) - 982 - -
Changes in assumptions 6,547 1,756 - 2,115 1,515 2,928 - -
Benefit payments, including refunds of employee contributions (5,494) (5,012) (4,771) (3,388) (4,144) (3,773) (3,588) (3,548)
Net change in total pension liability 5,695 5,630 (383) 1,241 1,834 4,634 826 824
Total pension liability - beginning 71,074 65,444 65,827 64,586 62,752 58,118 57,292 56,468
Total pension liability - ending (a)76,769$ 71,074$ 65,444$ 65,827$ 64,586$ 62,752$ 58,118$ 57,292$
Plan Fiduciary Net Position
Contributions - employer 1,435$ 3,506$ 4,962$ 3,507$ 5,346$ 7,277$ 4,678$ 4,539$
Investment income 15,717 2,114 2,582 2,128 6,373 4,282 (1,313) 3,465
Administrative Expense (314) (444) (191) (145) (182) (189) (170) (176)
Benefit payments (5,494) (5,012) (4,771) (3,388) (4,144) (3,773) (3,588) (3,548)
Section 115 Trust Segregation - - - (3,788) - - - -
Other - - - - - - 3,183 258
Net change in plan fiduciary net position 11,344 164 2,582 (1,686) 7,393 7,597 2,790 4,538
Plan fiduciary net position - beginning 59,017 58,853 56,271 57,957 50,564 42,967 40,177 35,639
Plan fiduciary net position - ending (b)70,361$ 59,017$ 58,853$ 56,271$ 57,957$ 50,564$ 42,967$ 40,177$
Net pension liability - beginning 12,057 6,591 9,556 6,629 12,188 15,151 17,115 20,829
Net pension liability - ending (a)-(b)6,408$ 12,057$ 6,591$ 9,556$ 6,629$ 12,188$ 15,151$ 17,115$
Plan fiduciary net position as a percentage of the
total pension liability 91.65% 83.04% 89.93% 85.48% 89.74% 80.58% 73.93% 70.13%
Covered payroll 7,684$ 8,469$ 12,863$ 10,890$ 17,167$ 19,517$ 22,069$ 22,004$
Net pension liability as a percentage of covered payroll 83.39% 142.37% 51.24% 87.75% 38.61% 62.45% 68.65% 77.78%
* Fiscal year 2013/14 was the first year of implementation, therefore only eight years are shown.
** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30, 2018.
Supplemental Retirement Plan
(in Thousands)
Last Ten Fiscal Years*
Schedule of Changes in the Net Pension Liability and Related Ratios During the Measurement Period
City of Huntington Beach
Required Supplementary Information
260
City of Huntington Beach
Required Supplementary Information
Schedule of Changes in Net OPEB Liability and Related Ratios
For the Measurement Periods Ended June 30
(in Thousands)
Measurement Period 2020 2019 2018 2017
Total OPEB Liability
Service cost 1,096$ 1,241$ 1,205$ 877$
Interest on the total OPEB liability 2,064 1,859 1,787 1,293
Actual and expected experience difference - 1,411 - -
Changes in assumptions (298) (3,358) - -
Benefit payments (1,848) (1,742) (1,683) (1,036)
Net change in total OPEB liability 1,014 (589) 1,309 1,134
Total OPEB liability - beginning 32,845 33,434 32,125 30,991
Total OPEB liability - ending (a)33,859$ 32,845$ 33,434$ 32,125$
Plan Fiduciary Net Position
Contribution - employer**1,959$ 2,270$ 4,191$ 1,036$
Net investment income 1,580 1,901 1,126 471
Benefit payments (1,848) (1,742) (1,683) (1,036)
Administrative expense (245) (61) (131) (9)
Net change in plan fiduciary net position 1,446 2,368 3,503 462
Plan fiduciary net position - beginning 29,193 26,825 23,322 22,860
Plan fiduciary net position - ending (b)30,639$ 29,193$ 26,825$ 23,322$
Net OPEB liability - ending (a)-(b)3,220$ 3,652$ 6,609$ 8,803$
Plan fiduciary net position as a percentage of the total OPEB liability 90.49%88.88%80.23%72.60%
Covered employee payroll 76,521$ 79,682$ 81,458$ 60,985$
Net OPEB liability as a percentage of covered employee payroll 4.21%4.58%8.11%14.43%
Notes to Schedule:
* Fiscal year 2017/18 was the first year of implementation, therefore only four years of information are shown.
**Contributions to the OPEB plan are not based on employee pay.
Last Ten Fiscal Years*
Other Post Employment Benefits Plan
261
2020-21 1 2019-20 1 2018-19 1 2017-18 1, 2 2016-17 1 2015-16 1 2014-15 1 2013-14 1
Actuarially determined contribution 18,086$ 16,878$ 14,819$ 9,734$ 11,921$ 11,238$ 10,510$ 8,685$
Contributions in relation to the actuarially
determined contributions (18,086) (16,878) (14,819) (9,734) (11,921) (11,238) (10,510) (8,685)
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$
Covered payroll 45,740$ 45,952$ 45,419$ 33,210$ 45,118$ 44,253$ 46,337$ 43,327$
Contributions as a percentage of covered payroll 39.54% 36.73% 32.63% 29.31% 26.42% 25.39% 22.68% 20.05%
Notes to Schedule
Valuation date: 6/30/2012 through 06/30/2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method/period
Asset valuation method
Inflation 2.50%
Salary increases Varies by entry age and service
Payroll growth
Discount Rate
Retirement age
Mortality
For 10/1/14-6/30/15, 15 Year Smoothed Market (for details, see June 30, 2012 Funding Valuation Report). For 7/1/15-
6/30/20, Fair Value (for details, see the Funding Valuation Reports for the years ended June 30, 2013, 2014, 2015, 2016
and 2017).
City of Huntington Beach
Required Supplementary Information
Schedule of Contributions
For the Year Ended June 30, 2021
(in Thousands)
Last Ten Fiscal Years*
CalPERS City Miscellaneous Plan - 99
1 Historical information is required only for measurement periods for which GASB 68 is applicable.
For details, see Miscellaneous Plan of the City of Huntington Beach Annual Valuation Report as of June 30, 2020.
2 The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30, 2018.
Note: The CalPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period
over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes
the 5-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy removes the 5-year ramp-down on
investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019.
2.75%
The prescribed discount rate assumption, adopted by the Board on December 21, 2016, is 7.00 percent compounded
annually (net of investment and administrative expenses) as of June 30, 2018.
For 10/1/13-6/30/16, the probabilities of retirement are based on the 2014 CalPERS Experience study for the period from
1997 to 2007. For 7/1/16-6/30/19, the probabilities of retirement are based on the 2014 CalPERS Experience study for
the period from 1997 to 2011. For 7/1/19-6/30/20, the probabilities of Retirement are based on the 2017 CalPERS
Experience Study for the period from 1997 to 2015.
For 10/1/13-6/30/16, the probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from
1997 to 2007. For 7/1/16-6/30/19, the probabilities of mortality are based on the 2014 CalPERS Experience Study for the
period from 1997 to 2011. For 7/1/16-6/30/18, Pre-retirement and Post-retirement mortality rates include 5 years of
projected mortality improvement using Scale AA published by the Society of Actuaries. For 7/1/18-6/30/19, Pre-retirement
and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the
Society of Actuaries. For 7/1/19-6/30/20, the probabilities of mortality are based on the 2017 CalPERS Experience Study
for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality
improvement using 90% of Scale MP-2016 published by the Society of Actuaries.
*Beginning with the June 30, 2013 valuations, CalPERS employed an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with
the increases or decreases in the rate spread directly over a 5-year period.
262
City of Huntington Beach
Required Supplementary Information
Schedule of Contributions
For the Year Ended June 30, 2021
(in Thousands)
2020-21 1 2019-20 1 2018-19 1 2017-18 1, 2 2016-17 1 2015-16 1 2014-15 1 2013-14 1
Actuarially determined contribution 27,691$ 25,847$ 23,062$ 15,223$ 19,468$ 19,129$ 18,125$ 14,759$
Contributions in relation to the actuarially
determined contributions (27,691) (25,847) (23,062) (15,223) (19,468) (19,129) (19,125) (14,759)
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ (1,000)$ -$
Covered payroll 45,665$ 43,783$ 43,684$ 31,943$ 43,269$ 42,607$ 44,055$ 41,167$
Contributions as a percentage of covered payroll 60.64% 59.03% 52.79% 47.66% 44.99% 44.90% 43.41% 35.85%
Notes to Schedule
Valuation date: 6/30/2012 through 06/30/2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method/period For details, see Safety Plan of the City of Huntington Beach Annual Valuation Report as of June 30, 2020.
Asset valuation method
Inflation 2.50%
Salary increases Varies by entry age and service.
Payroll growth
Discount Rate
Retirement age
Mortality
Last Ten Fiscal Years*
The prescribed discount rate assumption, adopted by the Board on December 21, 2016, is 7.00 percent
compounded annually (net of investment and administrative expenses) as of June 30, 2018.
*Beginning with the June 30, 2013 valuations, CalPERS employed an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-
year period with the increases or decreases in the rate spread directly over a 5-year period.
Note: The CalPERS Board of Administration has adopted a new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy
shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In
addition, the new policy removes the 5-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The
new policy removes the 5-year ramp-down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30,
2019.
For 10/1/13-6/30/16, the probabilities of retirement are based on the 2014 CalPERS Experience study for the
period from 1997 to 2007. For 7/1/16-6/30/19, the probabilities of retirement are based on the 2014 CalPERS
Experience study for the period from 1997 to 2011. For 7/1/19-6/30/20, the probabilities of Retirement are
based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
For 10/1/13-6/30/16, the probabilities of mortality are based on the 2010 CalPERS Experience Study for the
period from 1997 to 2007. For 7/1/16-6/30/19, the probabilities of mortality are based on the 2014 CalPERS
Experience Study for the period from 1997 to 2011. For 7/1/16-6/30/18, Pre-retirement and Post-retirement
mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of
Actuaries. For 7/1/18-6/30/19, Pre-retirement and Post-retirement mortality rates include 20 years of projected
mortality improvement using Scale BB published by the Society of Actuaries. For 7/1/19-6/30/20, the
probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.
Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using
90% of Scale MP-2016 published by the Society of Actuaries.
CalPERS City Safety Plan - 100
1 Historical information is required only for measurement periods for which GASB 68 is applicable.
For 10/1/14-6/30/15, 15 Year Smoothed Market (for details, see June 30, 2012 Funding Valuation Report). For
7/1/15-6/30/20, Fair Value (for details, see the Funding Valuation Reports for the years ended June 30, 2013,
2014, 2015, 2016 and 2017).
2.75%
2 The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30,
2018.
263
City of Huntington Beach
Required Supplementary Information
Schedule of Contributions
For the Year Ended June 30, 2021
(in Thousands)
2020-21 1 2019-20 1 2018-19 1 2017-18 1, 2 2016-17 1 2015-16 1 2014-15 1 2013-14 1
Actuarially determined contribution 933$ 1,689$ 2,258$ 2,879$ 3,895$ 3,576$ 3,634$ 4,534$
Contributions in relation to the actuarially
determined contributions (1,435) (3,506) (4,962) (3,507) (5,346) (7,277) (4,678) (4,539)
Contribution deficiency (excess)(502)$ (1,817)$ (2,704)$ (628)$ (1,451)$ (3,701)$ (1,044)$ (5)$
Covered payroll 7,684$ 8,469$ 12,863$ 10,890$ 17,167$ 19,517$ 22,069$ 22,004$
Contributions as a percentage of covered payroll 18.68% 41.40% 38.58% 32.20% 31.14% 37.29% 21.20% 20.63%
Notes to Schedule
Valuation date:6/30/2019 6/30/2019 9/30/2017 9/30/2017 9/30/2015 9/30/2013 9/30/2013 9/30/2011
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal, Level Percentage of Payroll
Amortization method/period
Asset valuation method
Inflation 2.50%
Salary increases Aggregate - 2.75% annually. Merit - CalPERS 1997-2015 Experience Study.
Payroll growth
Investment rate of return
Retirement age
Mortality
2021 2 2020 2 2019 2 2018 2 2017 2016 2015 2014
Annual Money Weighted Rate of Return, net
of investment expense 26.88% 3.79% 4.79% 4.04% 12.87% 10.20% -2.82% 9.20%
2 The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine-month reporting period from October 1, 2017 to June 30,
2018.
The probabilities of mortality are based on the CalPERS 1997-2015 Experience Study. Pre-retirement and Post-
retirement mortality rates include mortality projected fully generational with Scale MP-2019, modified to converge to
ultimate improvement rates in 2022 for the October 1, 2013 to June 30, 2018 measurement period. Mortality projected
fully generational with Scale MP-2019 for the July 1, 2019 to June 30, 2021 measurement period.
Schedule of Money Weighted Rate of Return
6.5%, net of pension plan investment and administrative expenses, including inflation for the October 1, 2013 to June
30, 2018 measurement period. 6.25%, net of pension plan investment and administrative expenses, for the July 1, 2019
- June 30, 2021 measurement period.
The probabilities of retirement are based on the CalPERS 1997-2015 Experience Study.
Investment gains/losses spread over a 3-year rolling period.
1 Historical information is required only for measurement periods for which GASB 68 is applicable.
2 The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from October 1, 2017 to June 30,
2018.
Last Ten Fiscal Years*
Supplemental Retirement Plan
1 Historical information is required only for measurement periods for which GASB 68 is applicable.
Merit - CalPERS 1997-2011 Experience Study plus 3.25% aggregate increase for the October 1, 2013 to June 30, 2018
measurement period. 3% aggregate increase for the July 1, 2018 - June 30, 2019 measurement period. Merit -
CalPERS 1997-2015 Experience Study plus 2.75% annually increase for the July 1, 2019 - June 30, 2020.
9/30/12 UAAL: fixed 10-year period, Gains/Losses: fixed 15-year period, Discount rate change loss: 10-year period,
6/30/18 UAAL: fixed 5-year period fresh start. 20-year closed period for 2020/2021. Level dollar amortization.
264
Fiscal Year Ended June 30 2021 2020 2019 2018**
Actuarially Determined Contribution (ADC)1,364$ 1,793$ 1,746$ 2,022$
Contributions in relation to the ADC***(1,882) (1,959) (2,270) (4,192)
Contribution deficiency (excess)(518)$ (166)$ (524)$ (2,170)$
Covered-employee payroll**70,881$ 76,521$ 79,682$ 59,589$
Contributions as a percentage of covered-employee payroll 2.66%2.56%2.85%7.03%
Notes to Schedule:
Valuation date:6/30/2019 6/30/2017 6/30/2017 6/30/2015
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Amortization Method/Period Level percent of payroll over a closed rolling 15-year period
Asset Valuation Method Investment gains and losses spread over 5-year rolling period.
Inflation
Payroll Growth 3.00% per annum, in aggregate.
Investment Rate of Return
Healthcare cost-trend rates
Retirement Age
Mortality
*Historical information is required only for measurement periods for which GASB 75 is applicable.
Future years' information will be displayed up to 10 years as information becomes available.
**For the nine-month period ending June 30, 2018. The City changed its fiscal year effective October 1, 2017.
***Contributions to the OPEB plan are not based on employee pay.
7.0% initial, 1.0% - 2.0% near term increase then decreasing 0.5% per year to trend rate that
reflects medical price inflation to an ultimate rate of 4.0% in 2076.
Tier 1 employees - 2.5% @55 and Tier 2 employees - 2.0% @62. The probabilities of retirement
are based on the 2014 CalPERS Experience Study for the period from 1997-2011. Tier 1
employees - 2.5% @55 and Tier 2 employees - 2.0% @ 62. The probabilities of retirement are
based on the CalPERS 1997-2015 experience Study for Measurement period as of 6/30/20.
Pre-retirement mortality probability based on 2014 CalPERS 1997-2011 Experience Study
covering CalPERS participants. Post-retirement mortality probability based on CalPERS
Experience Study 2007-2011 covering participants in CalPERS. Mortality based on CalPERS
1997-2015 Experience Study covering participants in CalPERS.
For the Year Ended June 30, 2021
3% for 10/1/17-6/30/18 and 2.75% per annum for the measurement period July 1, 2019 to June
30, 2020.
6% for the October 1, 2017 - June 30, 2018 period. 6.25% for the July 1, 2018 - June 30, 2020.
Assumes investing in California Employers' Retiree Benefit Trust asset allocation Strategy 3,
moving to Strategy 2 in March 2019.
Last Ten Fiscal Years*
Other Post Employment Benefits Plan
(in Thousands)
City of Huntington Beach
Required Supplementary Information
Schedule of Contributions
265
SUPPLEMENTARY INFORMATION
266
THIS PAGE INTENTIONALLY LEFT BLANK
267
City of Huntington Beach
Other Governmental Funds
Special Revenue Funds account for revenues and expenditures legally constrained to a specific purpose.
The Air Quality Fund accounts for revenues from the local agencies used to improve local air quality.
The Development Impact Fee Fund accounts for fees collected for new developments to be used for
transportation, park land acquisition and development, library and other public facilities in an effort to mitigate the
impacts of those new developments.
The Disability Access Fund accounts for the State Mandated Disability Access Fee (SB 1186) to fund increased
training certified access specialist (CASp) services for the public and to facilitate compliance with construction
related accessibility requirements.
The Drainage Fund accounts for fees received from developers to construct and maintain the City’s drainage
system.
The Fourth of July Parade Fund accounts for the activities of the City’s annual parade.
The Strand Parking Structure Fund accounts for the activities of the Strand Parking Structure.
The Gas Tax Fund accounts for monies allocated under the Streets and Highways Code of California. Expenditures
may be made for any street related purpose allowed under the code.
The Housing Residual Receipt Fund accounts for residual receipts received for housing activities.
The Park Acquisition and Development Fund accounts for fees received from developers to develop and
maintain the City’s park system.
The Surf City “3” Fund accounts for revenues and expenditures related to a 1% fee on cable television and other
video subscription services to fund the purchase and acquisition of capital equipment and facilities necessary to
program and broadcast PEG (public, education and government) events on the City’s cable channel.
The ELM Automation Fund accounts for automation fee revenues and Enterprise Land Management (ELM)
replacement costs and maintenance expenditures.
The Traffic Congestion Relief Fund accounts for moneys allocated for roadway maintenance as established by
Assembly Bill 2928.
The Traffic Impact Fee Fund accounts for moneys received from the traffic impact fee levied on new developments
in the City.
The Transportation Fund accounts for moneys received from the countywide half cent sales tax and other specific
sources to be spent on transportation related expenditures.
Debt Service Funds account for the receipts for and payment of general long-term debt.
The Public Financing Authority accounts for the activity of the Huntington Beach Public Financing Authority.
Capital Projects Funds account for the acquisition and construction of capital assets other than those financed by
proprietary fund types.
The Affordable Housing In-Lieu Fund accounts for the Affordable Housing In-Lieu Fee from developers of housing
projects who have elected to pay the fee in-lieu of building the affordable housing in their project.
The Infrastructure Fund records activity for certain designate infrastructure related expenditures.
The Lease Capital Project Fund records activity for capital lease project expenditures.
The Parking In-Lieu Fund records construction activity from developers who pay fees in-lieu of directly providing
parking facilities to the City.
The Senior Center Development Fund records construction activity for the Senior Center Development at Central
Park.
The Sewer Development Fund accounts for fees received from developers to construct and maintain sewer
facilities.
The Technology Fund accounts for technology infrastructure project expenditures.
268
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2021
(In Thousands)
ASSETS Air Quality
Development
Impact Fee
Disability
Access Drainage
Fourth of
July Parade
Strand Parking
Structures
Cash and Investments 1,446$ 14,535$ 294$ 2,714$ -$ 3,797$
Taxes Receivable - - - - - -
Other Receivables 72 43 1 8 - 11
Total Assets 1,518$ 14,578$ 295$ 2,722$ -$ 3,808$
LIABILITIES
Accounts Payable -$ 273$ 4$ -$ -$ 192$
Accrued Payroll - 5 - - - -
Total Liabilities - 278 4 - - 192
FUND BALANCES
Restricted
Pollution Remediation - - - - - -
Highways, Streets and Transportation - - - - - -
Low Income Housing - - - - - -
Air Quality 1,518 - - - - -
Other Capital Projects - 14,300 - 2,722 - -
Other Purposes - - 291 - - -
Committed
Parks - - - - - -
Other Purposes - - - - - 3,616
Total Fund Balances 1,518 14,300 291 2,722 - 3,616
Total Liabilities and Fund Balances 1,518$ 14,578$ 295$ 2,722$ -$ 3,808$
SPECIAL REVENUE FUNDS
269
Gas Tax
Housing
Residual
Receipt
Park Acquisition
and
Development Surf City "3"
ELM
Automation
Fund
Traffic
Congestion
Relief
Traffic Impact
Fee Transportation
Total Special
Revenue Funds
3,829$ 1,247$ 1,749$ 1,259$ 274$ 2,064$ 2,915$ 2,434$ 38,557$
680 - - 229 - - - 585 1,494
11 4 5 4 1 6 9 7 182
4,520$ 1,251$ 1,754$ 1,492$ 275$ 2,070$ 2,924$ 3,026$ 40,233$
1,803$ -$ 10$ 32$ -$ 35$ 2$ 158$ 2,509$
48 - - - 8 - - 51 112
1,851 - 10 32 8 35 2 209 2,621
- - 355 - - - - - 355
2,669 - - - - 2,035 2,922 2,817 10,443
- 1,251 - - - - - - 1,251
- - - - - - - - 1,518
- - - - - - - - 17,022
- - - 1,460 267 - - - 2,018
- - 1,389 - - - - - 1,389
- - - - - - - - 3,616
2,669 1,251 1,744 1,460 267 2,035 2,922 2,817 37,612
4,520$ 1,251$ 1,754$ 1,492$ 275$ 2,070$ 2,924$ 3,026$ 40,233$
SPECIAL REVENUE FUNDS
(continued)
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2021
(In Thousands)
CITY OF HUNTINGTON BEACH
270
ASSETS
Public Financing
Authority
Total Debt Service
Fund
Affordable Housing
In-Lieu Infrastructure
Cash and Investments 3,350$ 3,350$ 1,359$ 18,712$
Cash and Investments with Fiscal Agent 1,086 1,086 - -
Taxes Receivable - - - -
Other Receivables 1 1 88 250
Prepaids - - - 105
Total Assets 4,437$ 4,437$ 1,447$ 19,067$
LIABILITIES
Accounts Payable 2$ 2$ -$ 1,713$
Accrued Payroll - - - 80
Total Liabilities 2 2 - 1,793
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - 209
Total Deferred Inflows of Resources - - - 209
FUND BALANCES
Nonspendable
Prepaid Insurance - - - 105
Restricted
Pollution Remediation - - - -
Debt Service 4,435 4,435 - -
Highways, Streets and Transportation - - - -
Low Income Housing - - 1,447 -
Air Quality - - - -
Other Capital Projects - - - -
Other Purposes - - - -
Committed
Parks - - - -
Other Capital Projects - - - 16,960
Other Purposes - - - -
Assigned
Capital Improvement Reserve - - - -
Total Fund Balances 4,435 4,435 1,447 17,065
4,437$ 4,437$ 1,447$ 19,067$
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2021
(In Thousands)
(continued)
Total Liabilities, Deferred Inflows
of Resources and Fund Balances
DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS
271
Lease Capital
Project Parking In-Lieu
Senior Center
Development
Sewer
Development Technology
Total Capital
Projects Funds
Total Other
Governmental
Funds
3$ 655$ -$ 4,540$ 3,271$ 28,540$ 70,447$
8,750 - - - - 8,750 9,836
- - - - - - 1,494
- 3 - 13 10 364 547
- - - - - 105 105
8,753$ 658$ -$ 4,553$ 3,281$ 37,759$ 82,429$
-$ -$ -$ 319$ 1$ 2,033$ 4,544$
- - - - - 80 192
- - - 319 1 2,113 4,736
- - - - - 209 209
- - - - - 209 209
- - - - - 105 105
- - - - - - 355
- - - - - - 4,435
- - - - - - 10,443
- - - - - 1,447 2,698
- - - - - - 1,518
8,753 - - - - 8,753 25,775
- - - - - - 2,018
- - - - - - 1,389
- 658 - 4,234 - 21,852 21,852
- - - - - - 3,616
- - - - 3,280 3,280 3,280
8,753 658 - 4,234 3,280 35,437 77,484
8,753$ 658$ -$ 4,553$ 3,281$ 37,759$ 82,429$
CAPITAL PROJECT FUNDS
CITY OF HUNTINGTON BEACH
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
June 30, 2021
(In Thousands)
(continued)
272
REVENUES Air Quality
Development
Impact Fee
Disability
Access Drainage
Fourth of July
Parade
Strand Parking
Structures
Sales Taxes -$ -$ -$ -$ -$ -$
Other Taxes - - - - - -
Licenses and Permits - - 69 - - -
Use of Money and Property 8 19 2 12 16 1,232
Intergovernmental 263 - - - - -
Charges for Current Service - 1,148 - 218 - -
Other - - - - - -
Total Revenues 271 1,167 71 230 16 1,232
EXPENDITURES
Current:
City Manager - - - - - -
Community Development - - - - - 928
Finance - - 11 - - -
Information Systems - - - - - -
Community Services - 3,557 - - 99 -
Library Services - 349 - - - -
Public Works 15 - - 27 - -
Total Expenditures 15 3,906 11 27 99 928
Excess Of Revenues Over
(Under) Expenditures 256 (2,739) 60 203 (83) 304
Other Financing Sources (Uses):
Transfers In - - - - 45 -
Transfers Out - - - - - (400)
Total Other Financing Sources (Uses) - - - - 45 (400)
Net Change in Fund Balances 256 (2,739) 60 203 (38) (96)
Fund Balances - Beginning of Year 1,262 17,039 231 2,519 38 -
Cumulative Effect of Changes in Accounting Principles - - - - - 3,712
Fund Balance as Restated 1,262 17,039 231 2,519 38 3,712
Fund Balances - End of Year 1,518$ 14,300$ 291$ 2,722$ -$ 3,616$
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
273
Gas Tax
Housing
Residual
Receipt
Park
Acquisition
and
Development Surf City "3"
ELM
Automation
Fund
Traffic
Congestion
Relief
Traffic Impact
Fee Transportation
Total Special
Revenue
Funds
-$ -$ -$ -$ -$ -$ -$ 3,486$ 3,486$
6,783 - - 534 - - - - 7,317
- - - - - - - - 69
- 5 - 6 - 4 9 14 1,327
42 - - - - 1,456 - 21 1,782
- - - - 335 - 225 - 1,926
- 28 - - - - - - 28
6,825 33 - 540 335 1,460 234 3,521 15,935
- - - 372 - - - - 372
- - - - - - - - 928
- - - - - - - - 11
- - - - 428 - - - 428
- - 562 - - - - - 4,218
- - - - - - - - 349
11,262 - - - - 1,208 52 3,124 15,688
11,262 - 562 372 428 1,208 52 3,124 21,994
(4,437) 33 (562) 168 (93) 252 182 397 (6,059)
- - - - - - - - 45
- - - - - - - - (400)
- - - - - - - - (355)
(4,437) 33 (562) 168 (93) 252 182 397 (6,414)
7,106 1,218 2,306 1,292 360 1,783 2,740 2,420 40,314
- - - - - - - - 3,712
7,106 1,218 2,306 1,292 360 1,783 2,740 2,420 44,026
2,669$ 1,251$ 1,744$ 1,460$ 267$ 2,035$ 2,922$ 2,817$ 37,612$
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
(continued)
274
REVENUES
Public Financing
Authority
Total Debt Service
Funds
Affordable Housing In-
Lieu Infrastructure
Sales Taxes -$ -$ -$ -$
Other Taxes - - - -
Licenses and Permits - - 224 -
Use of Money and Property 9 9 92 46
Intergovernmental - - - -
Charges for Current Service - - - -
Other - - - 10
Total Revenues 9 9 316 56
EXPENDITURES
Current:
City Manager - - - -
Community Development - - 1 -
Finance 331 331 - -
Fire - - - -
Information Systems - - - -
Community Services - - - 62
Library Services - - - -
Public Works - - - 4,503
Debt Service:-
Principal 2,260 2,260 - -
Interest 700 700 - -
Total Expenditures 3,291 3,291 1 4,565
Excess Of Revenues Over
(Under) Expenditures (3,282) (3,282) 315 (4,509)
Other Financing Sources (Uses):
Transfers In 1,777 1,777 - 9,417
Proceeds of Long-Term Debt 19,275 19,275 - -
Issuance Premium 1,743 1,743 - -
Payments to Escrow (24,204) (24,204) - -
Transfers Out - - - -
Total Other Financing Sources (Uses) (1,409) (1,409) - 9,417
Net Change in Fund Balances (4,691) (4,691) 315 4,908
Fund Balances - Beginning of Year 9,126 9,126 1,132 12,157
Cumulative Effect of Changes in Accounting Principles - - - -
Fund Balance As Restated 9,126 9,126 1,132 12,157
Fund Balances - End of Year 4,435$ 4,435$ 1,447$ 17,065$
CAPITAL PROJECT FUNDS
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
(continued)
DEBT SERVICE FUNDS
275
Lease Capital
Project Parking In-Lieu
Senior Center
Development
Sewer
Development Technology
Total Capital
Projects Funds
Total Other
Governmental
Funds
-$ -$ -$ -$ -$ -$ 3,486$
- - - - - - 7,317
- 115 - - - 339 408
- - - - 7 145 1,481
- - - 12 - 12 1,794
- - - 92 - 92 2,018
- - - - - 10 38
- 115 - 104 7 598 16,542
- - - - - - 372
- - - - - 1 929
- - - - - - 342
1,071 - - - - 1,071 1,071
- - - - 254 254 682
- - - - - 62 4,280
- - - - - - 349
- - - 2,954 - 7,457 23,145
- - - - - - 2,260
55 - - - - 55 755
1,126 - - 2,954 254 8,900 34,185
(1,126) 115 - (2,850) (247) (8,302) (17,643)
- - - - - 9,417 11,239
12,753 - - - - 12,753 32,028
- - - - - - 1,743
(4,052) - - - - (4,052) (28,256)
- - (16) - - (16) (416)
8,701 - (16) - - 18,102 16,338
7,575 115 (16) (2,850) (247) 9,800 (1,305)
1,178 543 16 7,084 3,527 25,637 75,077
- - - - - - 3,712
1,178 543 16 7,084 3,527 25,637 78,789
8,753$ 658$ -$ 4,234$ 3,280$ 35,437$ 77,484$
CAPITAL PROJECT FUNDS
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
(continued)
276
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 8$ 8$
Intergovernmental 250 250 263 13
TOTAL REVENUES 250 250 271 21
EXPENDITURES:
Current:
Public Works 540 1,255 15 1,240
TOTAL EXPENDITURES 540 1,255 15 1,240
NET CHANGE IN FUND BALANCE (290) (1,005) 256 1,261
Fund Balance - Beginning of Year 1,262 1,262 1,262 -
Fund Balance - End of Year 972$ 257$ 1,518$ 1,261$
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 19$ 19$
Charges for Current Service 315 315 1,148 833
TOTAL REVENUES 315 315 1,167 852
EXPENDITURES:
Current:
Fire 280 900 - 900
Police - 115 - 115
Community Services 5,098 8,304 3,557 4,747
Library Services 200 490 349 141
TOTAL EXPENDITURES 5,578 9,809 3,906 5,903
NET CHANGE IN FUND BALANCE (5,263) (9,494) (2,739) 6,755
Fund Balance - Beginning of Year 17,039 17,039 17,039 -
Fund Balance - End of Year 11,776$ 7,545$ 14,300$ 6,755$
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Licenses and Permits 84$ 84$ 69$ (15)$
Use of Money and Property - - 2 2
TOTAL REVENUES 84 84 71 (13)
EXPENDITURES:
Current:
Finance 84 87 11 76
TOTAL EXPENDITURES 84 87 11 76
NET CHANGE IN FUND BALANCE - (3) 60 63
Fund Balance - Beginning of Year 231 231 231 -
Fund Balance - End of Year 231$ 228$ 291$ 63$
(In Thousands)
Air Quality
Development Impact Fee
Disability Access
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
277
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
From Use of Money and Property -$ -$ 12$ 12$
Charges for Current Service 150 150 218 68
TOTAL REVENUES 150 150 230 80
EXPENDITURES:
Current:
Public Works 100 100 27 73
TOTAL EXPENDITURES 100 100 27 73
NET CHANGE IN FUND BALANCE 50 50 203 153
Fund Balance - Beginning of Year 2,519 2,519 2,519 -
Fund Balance - End of Year 2,569$ 2,569$ 2,722$ 153$
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property 120$ 16$ 16$ -$
Intergovernmental 63 - - -
Charges for Current Service 142 - - -
Other 82 - - -
TOTAL REVENUES 407 16 16 -
EXPENDITURES:
Current:
Community Services 407 130 99 31
TOTAL EXPENDITURES 407 130 99 31
OTHER FINANCING SOURCES (USES):
Transfers In - 46 45 (1)
TOTAL OTHER FINANCING SOURCES (USES) - 46 45 (1)
NET CHANGE IN FUND BALANCE - (68) (38) 30
Fund Balance - Beginning of Year 38 38 38 -
Fund Balance - End of Year 38$ (30)$ -$ 30$
Strand Parking Structure
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property 1,403$ 1,403$ 1,232$ (171)$
TOTAL REVENUES 1,403 1,403 1,232 (171)
EXPENDITURES:
Current:
Community Development 1,041 1,041 928 113
TOTAL EXPENDITURES 1,041 1,041 928 113
OTHER FINANCING SOURCES (USES):
Transfers Out (400) (400) (400) -
TOTAL OTHER FINANCING SOURCES (USES) (400) (400) (400) -
NET CHANGE IN FUND BALANCE (38) (38) (96) (58)
Fund Balance - Beginning of Year - - - -
Cumulative Effect of Changes in Accounting Principles - - 3,712 3,712
Fund Balance as Restated - - 3,712 3,712
Fund Balance - End of Year (38)$ (38)$ 3,616$ 3,654$
Fourth of July Parade
Drainage
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
278
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Other Taxes 6,077$ 6,077$ 6,783$ 706$
Intergovernmental - - 42 42
TOTAL REVENUES 6,077 6,077 6,825 748
EXPENDITURES:
Current:
Public Works 5,530 11,985 11,262 723
TOTAL EXPENDITURES 5,530 11,985 11,262 723
NET CHANGE IN FUND BALANCE 547 (5,908) (4,437) 1,471
Fund Balance - Beginning of Year 7,106 7,106 7,106 -
Fund Balance - End of Year 7,653$ 1,198$ 2,669$ 1,471$
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 5$ 5$
Other 200 200 28 (172)
TOTAL REVENUES 200 200 33 (167)
EXPENDITURES:
Current:
Community Development 50 50 - 50
TOTAL EXPENDITURES 50 50 - 50
NET CHANGE IN FUND BALANCE 150 150 33 (117)
Fund Balance - Beginning of Year 1,218 1,218 1,218 -
Fund Balance - End of Year 1,368$ 1,368$ 1,251$ (117)$
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Charges for Current Service 70$ 70$ -$ (70)$
TOTAL REVENUES 70 70 - (70)
EXPENDITURES:
Current:
Community Services 625 1,979 562 1,417
TOTAL EXPENDITURES 625 1,979 562 1,417
NET CHANGE IN FUND BALANCE (555) (1,909) (562) 1,347
Fund Balance - Beginning of Year 2,306 2,306 2,306 -
Fund Balance - End of Year 1,751$ 397$ 1,744$ 1,347$
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
Park Acquisition and Development
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
Gas Tax
Housing Residual Receipt
279
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Other Taxes 605$ 605$ 534$ (71)$
Use of Money and Property - - 6 6
TOTAL REVENUES 605 605 540 (65)
EXPENDITURES:
Current:
City Manager 353 671 372 299
TOTAL EXPENDITURES 353 671 372 299
NET CHANGE IN FUND BALANCE 252 (66) 168 234
Fund Balance - Beginning of Year 1,292 1,292 1,292 -
Fund Balance - End of Year 1,544$ 1,226$ 1,460$ 234$
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Charges for Current Service 360$ 360$ 335$ (25)$
TOTAL REVENUES 360 360 335 (25)
EXPENDITURES:
Current:
Information Systems 431 431 428 3
TOTAL EXPENDITURES 431 431 428 3
NET CHANGE IN FUND BALANCE (71) (71) (93) (22)
Fund Balance - Beginning of Year 360 360 360 -
Fund Balance - End of Year 289$ 289$ 267$ (22)$
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 4$ 4$
Intergovernmental 1,535 1,535 1,456 (79)
TOTAL REVENUES 1,535 1,535 1,460 (75)
EXPENDITURES:
Current:
Public Works 1,200 2,744 1,208 1,536
TOTAL EXPENDITURES 1,200 2,744 1,208 1,536
NET CHANGE IN FUND BALANCE 335 (1,209) 252 1,461
Fund Balance - Beginning of Year 1,783 1,783 1,783 -
Fund Balance - End of Year 2,118$ 574$ 2,035$ 1,461$
CITY OF HUNTINGTON BEACH
(In Thousands)
Surf City "3"
ELM Automation Fund
Traffic Congestion Relief
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
SCHEDULE OF REVENUES, EXPENDITURES, AND
280
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 9$ 9$
Charges for Current Service - - 225 225
TOTAL REVENUES - - 234 234
EXPENDITURES:
Current:
Public Works 195 722 52 670
TOTAL EXPENDITURES 195 722 52 670
NET CHANGE IN FUND BALANCE (195) (722) 182 904
Fund Balance - Beginning of Year 2,740 2,740 2,740 -
Fund Balance - End of Year 2,545$ 2,018$ 2,922$ 904$
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Sales Taxes 3,008$ 3,008$ 3,486$ 478$
Use of Money and Property - - 14 14
Intergovernmental - - 21 21
TOTAL REVENUES 3,008 3,008 3,521 513
EXPENDITURES:
Current:
Public Works 3,398 4,929 3,124 1,805
TOTAL EXPENDITURES 3,398 4,929 3,124 1,805
NET CHANGE IN FUND BALANCE (390) (1,921) 397 2,318
Fund Balance - Beginning of Year 2,420 2,420 2,420 -
Fund Balance - End of Year 2,030$ 499$ 2,817$ 2,318$
REVENUES: Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 9$ 9$
TOTAL REVENUES - - 9 9
EXPENDITURES:
Current:
Finance 10 349 331 18
Debt Service:
Principal 2,575 3,125 2,260 865
Interest 1,387 1,906 700 1,206
TOTAL EXPENDITURES 3,972 5,380 3,291 2,089
OTHER FINANCING SOURCES (USES):
Transfers In 1,334 1,334 1,777 443
Proceeds of Long-Term Debt - 19,275 19,275 -
Issuance Premium - 1,743 1,743 -
Payments to Escrow - (23,135) (24,204) (1,069)
TOTAL OTHER FINANCING SOURCES (USES) 1,334 (783) (1,409) (626)
NET CHANGE IN FUND BALANCE (2,638) (6,163) (4,691) 1,472
Fund Balance - Beginning of Year 9,126 9,126 9,126 -
Fund Balance - End of Year 6,488$ 2,963$ 4,435$ 1,472$
Traffic Impact Fee
(In Thousands)
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
OTHER GOVERNMENTAL FUNDS
Transportation
Public Financing Authority
281
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Licenses and Permits 546$ 546$ 224$ (322)$
Use of Money and Property - - 92 92
TOTAL REVENUES 546 546 316 (230)
EXPENDITURES:
Current:
Community Development 200 203 1 202
TOTAL EXPENDITURES 200 203 1 202
NET CHANGE IN FUND BALANCE 346 343 315 (28)
Fund Balance - Beginning of Year 1,132 1,132 1,132 -
Fund Balance - End of Year 1,478$ 1,475$ 1,447$ (28)$
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 46$ 46$
Other - - 10 10
TOTAL REVENUES - - 56 56
EXPENDITURES:
Current:
Community Services 250 439 62 377
Public Works 4,071 16,330 4,503 11,827
TOTAL EXPENDITURES 4,321 16,769 4,565 12,204
OTHER FINANCING SOURCES (USES):
Transfers In 3,000 9,417 9,417 -
TOTAL OTHER FINANCING SOURCES (USES) 3,000 9,417 9,417 -
NET CHANGE IN FUND BALANCE (1,321) (7,352) 4,908 12,260
Fund Balance - Beginning of Year 12,157 12,157 12,157 -
Fund Balance - End of Year 10,836$ 4,805$ 17,065$ 12,260$
EXPENDITURES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Current:
Fire -$ 9,830$ 1,071$ 8,759$
Debt Service:
Interest - 55 55 -
TOTAL EXPENDITURES - 9,885 1,126 8,759
OTHER FINANCING SOURCES (USES):
Proceeds of Long-Term Debt - 21,503 12,753 (8,750)
Payments to Escrow - (4,052) (4,052) -
TOTAL OTHER FINANCING SOURCES (USES) - 17,451 8,701 (8,750)
NET CHANGE IN FUND BALANCE - 7,566 7,575 9
Fund Balance - Beginning of Year 1,178 1,178 1,178 -
Fund Balance - End of Year 1,178$ 8,744$ 8,753$ 9$
Lease Capital Project
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
(In Thousands)
Infrastructure
Affordable Housing In-Lieu
282
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Licenses and Permits 38$ 38$ 115$ 77$
TOTAL REVENUES 38 38 115 77
EXPENDITURES:
Current:
Community Development 38 38 - 38
TOTAL EXPENDITURES 38 38 - 38
NET CHANGE IN FUND BALANCE - - 115 115
Fund Balance - Beginning of Year 543 543 543 -
Fund Balance - End of Year 543$ 543$ 658$ 115$
OTHER FINANCING SOURCES (USES):Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Transfers Out -$ (16)$ (16)$ -$
TOTAL OTHER FINANCING SOURCES (USES) - (16) (16) -
NET CHANGE IN FUND BALANCE - (16) (16) -
Fund Balance - Beginning of Year 16 16 16 -
Fund Balance - End of Year 16$ -$ -$ -$
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Intergovernmental -$ -$ 12$ 12$
Charges for Current Service 160 160 92 (68)
TOTAL REVENUES 160 160 104 (56)
EXPENDITURES:
Current:
Public Works 150 6,348 2,954 3,394
TOTAL EXPENDITURES 150 6,348 2,954 3,394
NET CHANGE IN FUND BALANCE 10 (6,188) (2,850) 3,338
Fund Balance - Beginning of Year 7,084 7,084 7,084 -
Fund Balance - End of Year 7,094$ 896$ 4,234$ 3,338$
REVENUES:Original Budget Final Budget Actual
Variance with
Final Budget
Positive
(Negative)
Use of Money and Property -$ -$ 7$ 7$
TOTAL REVENUES - - 7 7
EXPENDITURES:
Current:
Information Systems - 418 254 164
TOTAL EXPENDITURES - 418 254 164
NET CHANGE IN FUND BALANCE - (418) (247) 171
Fund Balance - Beginning of Year 3,527 3,527 3,527 -
Fund Balance - End of Year 3,527$ 3,109$ 3,280$ 171$
Technology
Sewer Development
Senior Center Development
CITY OF HUNTINGTON BEACH
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
Parking In-Lieu
283
THIS PAGE INTENTIONALLY LEFT BLANK
284
THIS PAGE INTENTIONALLY LEFT BLANK
285
City of Huntington Beach
Internal Service Funds
Internal Services Funds are used to accumulate and allocate costs internally among the City’s various functions.
The Self Insurance Workers’ Comp Fund accounts for the City’s self insurance workers’ compensation program.
The Self Insurance General Liability Fund accounts for the City’s self insurance general liability program.
The Equipment Replacement Fund accounts for the City’s equipment replacement needs.
286
THIS PAGE INTENTIONALLY LEFT BLANK
287
Self Insurance
Workers' Comp
Self Insurance
General Liability
Equipment
Replacement
Fund
Internal Service
Fund Total
ASSETS
Current Assets:
Cash and Investments 16,197$ 10,337$ 7,322$ 33,856$
Other Receivables, Net 48 30 18 96
Prepaids 600 - 477 1,077
Total Current Assets 16,845 10,367 7,817 35,029
Capital Assets:
Machinery and Equipment - - 6,831 6,831
Less Accumulated Depreciation - - (1,527) (1,527)
Total Capital Assets - - 5,304 5,304
Total Assets 16,845 10,367 13,121 40,333
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to Pensions 1,234 - - 1,234
Deferred Outflows Related to Other Postemployment Benefits 10 5 - 15
Total Deferred Outflows of Resources 1,244 5 - 1,249
Total Assets and Deferred Outflows of Resources 18,089$ 10,372$ 13,121$ 41,582$
LIABILITIES
Current Liabilities:
Accounts Payable 359$ 212$ 144$ 715$
Accrued Payroll 16 - - 16
Interest Payable 4 - - 4
Current Portion of Claims Payable 6,268 3,840 - 10,108
Current Portion of Compensated Absences 12 - - 12
Total Current Liabilities 6,659 4,052 144 10,855
Non-Current Liabilities:
Compensated Absences 32 - - 32
Long-Term Obligations Due Within One Year 37 - - 37
Long-Term Obligations Due in More than One Year 1,029 - - 1,029
Net Pension Liability 1,309 - - 1,309
Net Other Postemployment Benefits Liability 11 5 - 16
Claims Payable 28,526 8,145 - 36,671
Total Non-Current Liabilities 30,944 8,150 - 39,094
Total Liabilities 37,603 12,202 144 49,949
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to Pensions 61 - - 61
Deferred Inflows Related to Other Postemployment Benefits 9 4 - 13
Total Deferred Inflows of Resources 70 4 - 74
NET POSITION
Net Investment in Capital Assets - - 5,304 5,304
Unrestricted (19,584) (1,834) 7,673 (13,745)
Total Net Position (19,584) (1,834) 12,977 (8,441)
Total Liabilities, Deferred Inflows
of Resources, and Net Position 18,089$ 10,372$ 13,121$ 41,582$
Governmental Activities
CITY OF HUNTINGTON BEACH
STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
June 30, 2021
(In Thousands)
288
Self Insurance
Workers' Comp
Self Insurance
General Liability
Equipment
Replacement
Fund
Internal Service
Fund Total
OPERATING REVENUES
Fees and Charges for Service 6,731$ 2,399$ 5,000$ 14,130$
Other 73 - - 73
Total Operating Revenues 6,804 2,399 5,000 14,203
OPERATING EXPENSES
Supplies and Operations 1,529 837 2,120 4,486
Claims and Judgments 10,667 11,406 - 22,073
Depreciation - - 714 714
Total Operating Expenses 12,196 12,243 2,834 27,273
Operating Income (5,392) (9,844) 2,166 (13,070)
NON-OPERATING REVENUES (EXPENSES)
Investment Income (Loss) (4) (78) (8) (90)
Interest Expense (4) - - (4)
Debt Service (4) - - (4)
Total Non-Operating Revenues (Expenses) (12) (78) (8) (98)
Income (Loss) Before Transfers (5,404) (9,922) 2,158 (13,168)
Change in Net Position (5,404) (9,922) 2,158 (13,168)
Net Position - Beginning of Year (14,180) 8,088 10,819 4,727
Net Position - End of Year (19,584)$ (1,834)$ 12,977$ (8,441)$
CITY OF HUNTINGTON BEACH
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
Governmental Activities
289
Self Insurance
Workers' Comp
Self Insurance
General Liability
Equipment
Replacement
Fund
Internal Service
Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers and Users 6,811$2,424$5,006$14,241$
Cash Paid to Employees for Services (1,528)(33) - (1,561)
Cash Paid to Suppliers of Goods and Services (6,513) (7,694) (2,555) (16,762)
Net Cash and Investment Provided by
Operating Activities (1,230) (5,303) 2,451 (4,082)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Debt Service (4) - - (4)
Proceeds from Issuance of Debt 1,066 - - 1,066
Net Cash and Investments Used by
Noncapital Financing Activities 1,062 - - 1,062
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of Capital Assets - - (1,960) (1,960)
Net Cash and Investments (Used) by
Capital and Related Financing Activities - - (1,960) (1,960)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income (Loss) (4) (78) (8) (90)
Net Cash and Investments Provided by
Investing Activities (4) (78) (8) (90)
Net Increase in Cash and Investments (172) (5,381)483 (5,070)
Cash and Investments - Beginning of Year 16,369 15,718 6,839 38,926
Cash and Investments - End of Year 16,197$ 10,337$ 7,322$ 33,856$
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH AND INVESTMENTS
PROVIDED (USED) BY OPERATING ACTIVITIES
Operating (Loss) (5,392)$ (9,844)$ 2,166$ (13,070)$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash and Investments
Provided (Used) by Operating Activities
Depreciation - - 714 714
Decrease in Other Receivables, Net 7 25 6 38
Decrease (Increase) in Prepaids - - (477) (477)
Increase (Decrease) in Accounts Payable 55 80 42 177
Increase (Decrease) in Accrued Payroll (7) - - (7)
Increase (Decrease) in Claims Payable 5,188 4,436 - 9,624
Decrease (Increase) in Deferred Pension Outflow (1,093)- - (1,093)
Increase (Decrease) in Deferred Pension Inflow 32 - - 32
Increase in Net Pension Liability (19) - - (19)
Decrease in Deferred Other Postemployment Benefits Outflow 1 - - 1
Increase in Deferred Other Postemployment Benefits Inflow (1) - - (1)
(Decrease) in Ending Net Other Postemployment Benefits Liability(1) - - (1)
Net Cash and Investments Provided
by Operating Activities (1,230)$ (5,303)$ 2,451$ (4,082)$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES
There were no noncash investing, capital, or financing activities during the year ended June 30, 2021.
Governmental Activities
CITY OF HUNTINGTON BEACH
STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(In Thousands)
290
THIS PAGE INTENTIONALLY LEFT BLANK
291
City of Huntington Beach
Fiduciary Funds
Fiduciary Funds account for assets held by the City as a custodian for other organizations or individuals.
The Community Facilities Districts Funds accounts for the debt service activity of the City’s three community
facilities districts.
The Huntington Beach Business Improvement District Fund accounts for the activities of the City’s
business improvement district.
The Bella Terra Parking Structure Fund accounts for the activities of the Bella Terra Parking Structure.
292
THIS PAGE INTENTIONALLY LEFT BLANK
293
Custodial Funds
Assets:
Community
Facilities
Districts
Business
Improvement
Districts
Parking
Structure - Bella
Terra
Total Custodial
Funds
Current Assets:
Cash and Investments 1,286$ 1,184$ $ 2,020 $ 4,490
Cash with Fiscal Agent 1,584 - 1,681 3,265
Accounts Receivable, Net - 697 2 699
Total Assets 2,870 1,881 3,703 8,454
Liabilities:
Current Liabilities:
Accounts Payable - 1,714 214 1,928
Total Current Liabilities - 1,714 214 1,928
NET POSITION
Restricted for Individuals and Organizations 2,870 167 3,489 6,526
Total Net Position 2,870$ 167$ 3,489$ 6,526$
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
Custodial Funds
ADDITIONS
Community
Facilities
Districts
Business
Improvement
Districts
Parking
Structure - Bella
Terra
Total Custodial
Funds
Special Assessments or Special Taxes
Collected from Property Owners 1,512$ -$ -$ 1,512$
Business Improvement District Taxes - 4,093 - 4,093
Parking Assessments - - 2,442 2,442
Interest Income 9 - 4 13
Total Additions 1,521 4,093 2,446 8,060
DEDUCTIONS
Administrative Costs 40 1 10 51
Payments to other Organizations - 4,121 627 4,748
Interest and Fiscal Agency Expenses 705 - 806 1,511
Principal 955 - 855 1,810
Total Deductions 1,700 4,122 2,298 8,120
Change in Net Position (179) (29) 148 (60)
Net Position - Beginning of Year - - - -
Cumulative Effect of Changes in
Accounting Principles 3,049 196 3,341 6,586
Net Position - Beginning of Year as Restated 3,049 196 3,341 6,586
Net Position - End of Year 2,870$ 167$ 3,489$ 6,526$
CITY OF HUNTINGTON BEACH
COMBINING STATEMENT OF FIDUCIARY FUND ASSETS AND LIABILITIES
FIDUCIARY FUNDS
JUNE 30, 2021
294
THIS PAGE INTENTIONALLY LEFT BLANK
295
City of Huntington Beach
Statistical Section
This part of the City of Huntington Beach’s Annual Comprehensive Report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information say about the City’s overall financial health.
Financial Trends – contains trend information to help the reader understand how the City’s
financial performance has changed over time.
Revenue Capacity – contains information to help the reader assess the City’s most significant
local revenue source, the property tax.
Debt Capacity – presents information to 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 – offers information to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information – contains service and infrastructure data to help the reader
understand how the City’s financial report relates to the services the City provides and the
activities it performs.
Unless otherwise noted, the information in these schedules is derived from the annual comprehensive
financial reports for the relevant year.
296
September 30,
Governmental Activities 2021 2020 2019 2018***2017
Net investment in capital assets 699,204$ 673,498$ 664,281$ 650,466$ 646,336$
Restricted 65,755 79,926 66,089 58,537 41,888
Unrestricted (275,159) (274,523) (251,022) (254,528) (262,874)
Total Governmental Activities Net Position 489,800$ 478,901$ 479,348$ 454,475$ 425,350$
Business-Type Activities
Net investment in capital assets 142,469$ 142,785$ 145,696$ 143,954$ 140,478$
Restricted 20,332 22,248 21,153 25,886 30,444
Unrestricted 39,129 38,482 36,747 27,492 22,228
Total Business-Type Activities Net Position 201,930$ 203,515$ 203,596$ 197,332$ 193,150$
Primary Government
Net investment in capital assets 841,673$ 816,283$ 809,977$ 794,420$ 786,814$
Restricted 86,087 102,174 87,242 84,423 72,332
Unrestricted (236,030) (236,041) (214,275) (227,036) (240,646)
Total Primary Government Net Position 691,730$ 682,416$ 682,944$ 651,807$ 618,500$
Expenses:September 30,
Governmental Activities:2021 2020 2019 2018***2017
City Council 423$ 405$ 360$ 218$ 347$
City Manager 11,163 3,328 4,501 2,063 4,691
City Treasurer 340 317 246 101 216
City Attorney 3,140 3,136 2,886 1,536 3,307
City Clerk 1,147 949 976 475 889
Finance 6,828 6,661 6,245 3,455 6,201
Human Resources*****- - 6,261 4,760 5,693
Community Development*19,716 15,722 6,144 4,301 7,576
Fire 65,960 62,840 56,494 26,688 52,941
Information Services 6,230 8,643 7,530 4,375 7,047
Police 102,415 97,204 87,355 42,109 84,786
Economic Development**- - - - -
Community Services 11,365 12,539 13,369 6,768 15,558
Library Services 6,181 5,776 5,206 2,890 5,064
Public Works 40,270 45,834 40,803 23,898 35,373
Non-Departmental****- - - 18,164 29,368
Interest on Long-Term Debt 2,706 1,686 1,823 1,467 2,063
Total Governmental Activities 277,884 265,040 240,199 143,268 261,120
Business-Type Activities
Water Utility 46,054 44,463 43,405 28,414 45,940
Sewer Service 9,284 9,828 9,442 6,127 9,351
Refuse Collection 12,936 12,609 12,051 8,916 10,821
Hazmat Service 241 235 234 117 224
Total Business-Type Activities 68,515 67,135 65,132 43,574 66,336
Total Business and Government Type Activities 346,399$ 332,175$ 305,331$ 186,842$ 327,456$
* Planning and Building departments were combined in the year ended September 30, 2011. The combined department was later renamed to
Community Development in the year ended September 30, 2016.
** Economic Development was combined with Community Development in the year ended June 30, 2020. Previously, it was combined with the City
Manager's Office as of the year ended September 30, 2014.
*** The 2018 period reflects nine months of activity only as the fiscal year change resulted in reporting period from October 1, 2017 to June 30, 2018.
**** Beginning with the fiscal year ended June 30, 2019, non-departmental expenditures are no longer presented separately but are included as part of
functional expenditures.
***** Human Resources was combined with the City Manager's Office in the year ended June 30, 2020.
June 30,
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year Ended
CITY OF HUNTINGTON BEACH
CITY OF HUNTINGTON BEACH
Fiscal Year Ended
(In Thousands)
NET POSITION BY COMPONENT - LAST TEN FISCAL YEARS
June 30,
297
Governmental Activities 2016 2015 2014 2013 2012
Net investment in capital assets 624,180$ 615,512$ 618,825$ 617,267$ 612,346$
Restricted 41,555 52,270 34,018 51,867 44,220
Unrestricted (222,863) (222,787) 89,524 54,076 53,098
Total Governmental Activities Net Position 442,872$ 444,995$ 742,367$ 723,210$ 709,664$
Business-Type Activities
Net investment in capital assets 142,566$ 142,616$ 140,770$ 145,886$ 134,129$
Restricted 32,049 28,096 27,951 27,488 27,804
Unrestricted 21,997 28,476 53,166 65,595 63,686
Total Business-Type Activities Net Position 196,612$ 199,188$ 221,887$ 238,969$ 225,619$
Primary Government
Net investment in capital assets 766,746$ 758,128$ 759,595$ 763,153$ 746,475$
Restricted 73,604 80,366 61,969 79,355 72,024
Unrestricted (200,866) (194,311) 142,690 119,671 116,784
Total Primary Government Net Position 639,484$ 644,183$ 964,254$ 962,179$ 935,283$
Expenses:
Governmental Activities:2016 2015 2014 2013 2012
City Council 321$ 270$ 258$ 271$ 310$
City Manager 3,849 3,302 3,878 1,583 1,767
City Treasurer 208 158 169 132 141
City Attorney 2,598 2,284 2,321 2,221 2,313
City Clerk 806 855 747 797 689
Finance 5,765 5,208 5,314 4,825 4,573
Human Resources*****6,814 5,169 4,616 5,032 4,743
Community Development*7,208 6,605 7,091 6,155 6,123
Fire 47,965 42,162 43,194 36,323 35,336
Information Services 6,852 6,552 6,456 6,096 5,857
Police 74,943 64,048 66,681 60,466 60,690
Economic Development**- - - 8,395 3,703
Community Services 9,935 13,809 12,509 15,521 15,586
Library Services 4,611 4,246 4,024 3,873 3,777
Public Works 31,791 27,979 31,691 28,500 26,508
Non-Departmental****35,240 24,080 21,602 25,563 19,190
Interest on Long-Term Debt 2,119 2,245 1,946 2,289 2,376
Total Governmental Activities 241,025 208,972 212,497 208,042 193,682
Business-Type Activities
Water Utility 41,643 38,614 41,499 38,446 37,437
Sewer Service 8,729 8,192 9,712 7,253 7,623
Refuse Collection 11,277 11,308 11,145 10,882 10,785
Hazmat Service 244 204 231 220 216
Total Business-Type Activities 61,893 58,318 62,587 56,801 56,061
Total Business and Government Type Activities 302,918$ 267,290$ 275,084$ 264,843$ 249,743$
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)
(continued)
Fiscal Year Ended
September 30,
CITY OF HUNTINGTON BEACH
CITY OF HUNTINGTON BEACH
NET POSITION BY COMPONENT - LAST TEN FISCAL YEARS
(In Thousands)
(continued)
Fiscal Year Ended
September 30,
298
Program Revenues:September 30,
Governmental Activities:2021 2020 2019 2018***2017
Charges for Services
City Council 162$ 177$ 149$ 91$ 108$
City Manager 4,208 5,315 3,300 2,374 3,515
City Treasurer 149 163 135 81 100
City Attorney 6 7 7 4 5
City Clerk 30 220 327 229 257
Finance 3,055 3,302 2,899 1,746 2,047
Human Resources*****- - 751 373 654
Community Development*8,353 10,037 7,459 5,448 7,448
Fire 8,877 10,122 9,831 9,104 10,296
Information Services 610 636 628 381 501
Police 6,477 5,329 6,044 4,703 4,968
Economic Development**- - - - -
Community Services 15,558 17,631 23,530 19,245 21,693
Library Services 153 266 308 237 476
Public Works 6,045 6,614 6,368 4,392 5,392
Non-Departmental****- - - 916 1,116
Total Charges for Services 53,683 59,819 61,736 49,324 58,576
Operating Grants 6,013 8,141 6,644 3,976 7,329
Capital Grants 10,192 14,483 8,361 6,055 3,408
Total Governmental Activities Program Revenue 69,888 82,443 76,741 59,355 69,313
Business-Type Activities:
Water Utility 42,523 40,518 43,958 29,530 39,938
Sewer Service 10,828 10,900 11,868 8,362 10,854
Refuse Collection 13,014 12,573 12,022 8,820 11,282
Hazmat Service 266 279 276 25 287
Total Business-Type Activities Program Revenues 66,631 64,270 68,124 46,737 62,361
Total Primary Government Program Revenue 136,519 146,713 144,865 106,092 131,674
Net (Expense) Revenue:
Governmental Activities (207,996) (182,597) (188,299) (180,844) (73,955)
Business-Type Activities (1,884) (2,865) 989 (18,395) 18,787
Total Net (Expense) Revenue (209,880) (185,462) (187,310) (199,239) (55,168)
General Revenue and Other Changes in Net Position
Governmental Activities:
Property Taxes 99,958 94,263 61,185 82,925 87,128
Sales Taxes 51,162 44,616 33,844 43,551 34,289
Utility Taxes 18,374 18,149 14,014 19,303 19,482
Other Taxes 17,293 18,635 14,883 17,991 17,313
Use of Money and Property 4,399 3,208 2,158 3,370 3,618
From Other Agencies 22,000 3,317 2,263 3,896 4,397
Other - - 2,811 2,438 5,693
Transfers (38) (38) (332) (51) (38)
Total Governmental Activities General Revenues 213,148 182,150 130,826 173,423 171,882
Business-Type Activities:
Use of Money and Property 261 2,746 279 462 939
Transfers 38 38 332 51 38
Total Business-Type Activities General Revenues 299 2,784 611 513 977
Total General Revenues and Transfers 213,447 184,934 131,437 173,936 172,859
Extraordinary Gain - - - - -
Changes in Net Position - Governmental Activities 5,152 (447) (57,473) (7,421) 97,927
Changes in Net Position - Business-Type Activities (1,585) (81) 3,603 3,676 (2,998)
Net Position - Beginning of Year 682,416 682,944 627,548 630,431 535,502
Prior Period Adjustment - Governmental Activities 5,747 - (17,788) 862 -
Prior Period Adjustment - Business-Type Activities - - 408 - -
Net Position - Beginning of Year as restated 688,163 682,944 610,168 631,293 535,502
Net Position - End of Year 691,730$ 682,416$ 556,298$ 627,548$ 630,431$
* Planning and Building departments were combined in the year ended September 30, 2011. The combined department was later renamed to
Community Development in the year ended September 30, 2016.
** Economic Development was combined with Community Development in the year ended June 30, 2020. Previously, it was combined with the City
Manager's Office as of the year ended September 30, 2014.
*** The 2018 period reflects nine months of activity only as the fiscal year change resulted in reporting period from October 1, 2017 to June 30, 2018.
**** Beginning with the fiscal year ended June 30, 2019, non-departmental expenditures are no longer presented separately but are included as part of
functional expenditures.
***** Human Resources was combined with the City Manager's Office in the year ended June 30, 2020.
Fiscal Year Ended
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
CITY OF HUNTINGTON BEACH
(In Thousands)
June 30,
299
Program Revenues:
Governmental Activities:2016 2015 2014 2013 2012
Charges for Services
City Council 116$ 71$ 68$ 66$ 65$
City Manager 3,029 2,994 2,835 134 130
City Treasurer 101 639 621 602 585
City Attorney 4 143 139 135 131
City Clerk 201 199 321 248 170
Finance 2,277 1,353 1,313 1,275 1,238
Human Resources*****513 1,263 2,499 1,236 1,150
Community Development*9,252 10,670 9,357 9,411 7,706
Fire 9,894 8,625 8,672 9,482 9,497
Information Services 521 834 809 786 763
Police 5,958 5,512 5,170 4,653 5,073
Economic Development**- - - 2,505 2,303
Community Services 18,853 18,569 18,055 17,832 17,792
Library Services 408 495 434 634 466
Public Works 5,733 6,474 6,367 7,315 5,482
Non-Departmental****1,290 327 318 306 281
Total Charges for Services 58,150 58,168 56,978 56,620 52,832
Operating Grants 4,723 7,458 7,958 7,303 5,088
Capital Grants 5,939 9,809 5,486 7,191 6,624
Total Governmental Activities Program Revenue 68,812 75,435 70,422 71,114 64,544
Business-Type Activities:
Water Utility 35,765 35,350 36,944 38,679 35,926
Sewer Service 11,280 11,239 10,665 12,267 11,546
Refuse Collection 11,215 11,221 11,006 10,950 10,786
Hazmat Service 235 222 183 278 154
Total Business-Type Activities Program Revenues 58,495 58,032 58,798 62,174 58,412
Total Primary Government Program Revenue 127,307 133,467 129,220 133,288 122,956
Net (Expense) Revenue:
Governmental Activities (192,308) (165,590) (138,550) (141,383) (143,498)
Business-Type Activities (7,841) (3,861) 480 (413) 1,611
Total Net (Expense) Revenue (200,149) (169,451) (138,070) (141,796) (141,887)
General Revenue and Other Changes in Net Position
Governmental Activities:
Property Taxes 82,615 81,355 74,795 74,856 86,056
Sales Taxes 33,063 29,243 30,276 30,051 25,339
Utility Taxes 20,229 20,621 20,764 20,152 19,135
Other Taxes 16,464 15,601 14,568 12,930 13,368
Use of Money and Property 5,551 3,725 2,816 3,434 3,239
From Other Agencies 5,653 4,279 6,003 6,585 5,647
Other 4,440 6,903 5,240 4,941 3,060
Transfers 35 (38) (38) (38) (38)
Total Governmental Activities General Revenues 168,050 161,689 154,424 152,911 155,806
Business-Type Activities:
Use of Money and Property 1,281 1,015 137 1,100 1,135
Transfers (35) 38 38 38 38
Total Business-Type Activities General Revenues 1,246 1,053 175 1,138 1,173
Total General Revenues and Transfers 169,296 162,742 154,599 154,049 156,979
Extraordinary Gain - - (4,669) 23,960 -
Changes in Net Position - Governmental Activities (24,258) (3,901) 11,205 35,488 12,308
Changes in Net Position - Business-Type Activities (2,152) 767 (3,614) 6,511 3,524
Net Position - Beginning of Year 919,403 937,340 921,228 879,229 863,397
Prior Period Adjustment - Governmental Activities (333,677) (457) 719 - -
Prior Period Adjustment - Business-Type Activities (23,814) (14,346) 7,802 - -
Net Position - Beginning of Year as restated 561,912 922,537 929,749 879,229 863,397
Net Position - End of Year 535,502$ 919,403$ 937,340$ 921,228$ 879,229$
September 30,
CITY OF HUNTINGTON BEACH
CHANGES IN NET POSITION - LAST TEN FISCAL YEARS
(In Thousands)
Fiscal Year Ended
(continued)
300
Fiscal Year Ended
September 30,
2021 2020 2019 2018 2017
General Fund:
Nonspendable 115$ 120$ 23$ 41$ -$
Restricted 13,561 9,320 8,154 6,384 2,671
Committed 25,565 25,010 25,011 25,011 25,011
Assigned 55,368 45,638 45,825 34,464 33,498
Unassigned - - - 2,734 -
Total General Fund 94,609$ 80,088$ 79,013$ 68,634$ 61,180$
Other Governmental Funds:
Nonspendable 105$ 50$ 64$ 726$ -$
Restricted 70,161 71,671 59,213 52,742 40,588
Committed 26,857 21,735 20,308 20,800 17,686
Assigned 3,280 3,527 3,614 2,701 826
Total Other Governmental Funds 100,403$ 96,983$ 83,199$ 76,969$ 59,100$
2016 2015 2014 2013 2012
General Fund:
Nonspendable -$ 4,479$ 4,378$ 4,040$ 4,633$
Restricted 2,637 2,871 2,070 1,878 1,387
Committed 25,011 25,011 25,011 24,011 -
Assigned 35,199 32,431 29,595 24,578 48,415
Total General Fund 62,847$ 64,792$ 61,054$ 54,507$ 54,435$
Other Governmental Funds:
Restricted 40,293$ 45,515$ 27,214$ 27,425$ 27,722$
Committed 21,368 21,659 16,447 11,098 6,745
Assigned 838 161 151 316 1,181
Unassigned - - - (210) (395)
Total Other Governmental Funds 62,499$ 67,335$ 43,812$ 38,629$ 35,253$
Fiscal Year Ended September 30,
Fiscal Year Ended June 30,
CITY OF HUNTINGTON BEACH
FUND BALANCES - GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS
(In Thousands)
(Modified Accrual Basis of Accounting)
301
THIS PAGE INTENTIONALLY LEFT BLANK
302
September 30,
2021 2020 2019 2018*2017
REVENUES:
Property Taxes 99,958$ 94,263$ 89,367$ 80,614$ 80,826$
Sales Taxes 51,162 44,616 47,437 33,844 43,551
Utility Taxes 18,374 18,149 18,788 14,014 19,303
Other Taxes 25,745 24,578 27,196 18,409 17,991
Licenses and Permits 8,213 11,266 8,574 6,293 8,812
Fines and Forfeitures 4,619 3,403 4,300 3,048 3,995
From Use of Money and Property 19,163 27,863 23,276 11,600 17,210
From Other Agencies 29,836 11,309 13,072 10,384 15,293
Charges for Current Service/Other Revenue 27,428 34,772 33,787 30,216 32,351
TOTAL REVENUES 284,498 270,219 265,797 208,422 239,332
EXPENDITURES
Current:
City Council 1,043 394 369 279 333
City Manager 15,976 4,342 6,598 3,143 4,116
City Treasurer 837 297 248 134 201
City Attorney 7,714 2,898 2,874 2,037 3,052
City Clerk 2,810 886 981 602 830
Finance 16,173 6,200 6,484 4,376 5,763
Human Resources******- - 6,362 5,323 5,535
Community Development**39,212 14,692 8,138 5,554 6,963
Fire 149,726 56,477 54,431 36,347 46,831
Information Systems 19,095 8,473 8,342 5,385 6,603
Police 232,438 87,682 83,546 57,916 75,015
Economic Development***- - - - -
Community Services 25,064 14,429 11,720 7,958 14,124
Library Services 14,099 5,199 4,944 3,436 4,422
Public Works 88,007 47,655 46,878 30,357 38,635
Non-Departmental*****- - - 22,432 28,396
Capital Outlay****- - - - -
Debt Service:
Principal 3,983 5,122 5,346 311 5,091
Interest 937 1,748 1,890 965 2,066
TOTAL EXPENDITURES 617,114 256,494 249,151 186,555 247,976
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES (332,616) 13,725 16,646 21,867 (8,644)
OTHER FINANCING SOURCES (USES):
Transfers In 13,058 10,009 11,190 13,261 6,692
Issuance of Long-Term Debt (453) 1,172 - - 2,767
Issuance Premium 1,743 - - - -
Issuance Discount (649) - - - -
Proceeds of Long Term Debt 372,463 - - - -
Payments to Escrow (28,256) - - - -
Transfers Out (13,096) (10,047) (11,227) (13,593) (6,743)
TOTAL OTHER FINANCING SOURCES (USES)344,810 1,134 (37) (332) 2,716
Extraordinary Item - Dissolution of RDA - - - - -
INCREASE (DECREASE) IN FUND BALANCES 12,194$ 14,859$ 16,609$ 21,535$ (5,928)$
DEBT SERVICE AS A PERCENTAGE OF
NON-CAPITAL EXPENDITURES 0.8%3.0%3.3%0.7%3.2%
* The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from
October 1, 2017 to June 30, 2018.
** Planning and Building departments were combined in the year ended September 30, 2011. The department was later renamed to
Community Development in the year ended September 30, 2016.
*** Economic Development was combined with Community Development in the year ended June 30, 2020. Previously, it was combined with
the City Manager's Office as of the year ended September 30, 2014.
(Modified Accrual Basis of Accounting)
Fiscal Year Ended
June 30,
CITY OF HUNTINGTON BEACH
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS
(In Thousands)
303
(continued)
2016 2015 2014 2013 2012
REVENUES:
Property Taxes 86,382$ 82,472$ 79,460$ 74,442$ 74,554$
Sales Taxes 39,305 32,234 30,454 29,763 29,126
Utility Taxes 19,482 20,229 20,621 20,764 20,152
Other Taxes 17,313 16,464 15,601 14,568 12,930
Licenses and Permits 9,820 9,270 7,976 9,880 7,773
Fines and Forfeitures 5,144 4,746 4,392 4,058 4,252
From Use of Money and Property 18,055 17,473 16,695 16,046 16,855
From Other Agencies 13,712 18,634 16,804 18,237 18,537
Charges for Current Service/Other Revenue 32,506 35,869 33,886 34,150 30,051
TOTAL REVENUES 241,719 237,391 225,889 221,908 214,230
EXPENDITURES
Current:
City Council 318 278 258 260 310
City Manager 3,092 2,703 3,040 1,574 1,758
City Treasurer 204 167 169 132 141
City Attorney 2,539 2,425 2,321 2,221 2,313
City Clerk 790 895 747 797 689
Finance 5,659 5,452 5,314 4,825 4,573
Human Resources******6,776 4,606 4,298 5,661 5,213
Community Development**7,062 6,954 7,091 6,155 6,119
Fire 46,200 45,008 42,602 35,920 35,145
Information Systems 6,742 6,846 6,456 6,096 5,857
Police 72,612 68,940 66,628 60,460 60,249
Economic Development***- - - 7,012 3,389
Community Services 10,768 10,223 10,040 13,952 14,082
Library Services 4,247 4,146 3,739 3,588 3,492
Public Works 23,659 23,820 22,872 22,169 22,666
Non-Departmental*****24,670 20,067 21,033 19,684 15,455
Capital Outlay****27,269 14,986 10,729 10,745 11,096
Debt Service:
Principal 5,933 5,454 4,797 9,381 6,012
Interest 2,138 2,226 1,987 2,321 2,564
TOTAL EXPENDITURES 250,678 225,196 214,121 212,953 201,123
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES (8,959) 12,195 11,768 8,955 13,107
OTHER FINANCING SOURCES (USES):
Transfers In 9,034 12,158 9,832 9,501 18,904
Issuance of Long-Term Debt 10,197 - -
Issuance Premium - - - - -
Issuance Discount - - - - -
Proceeds of Long Term Debt - - - - -
Payments to Escrow - - - - -
Transfers Out (17,053) (14,238) (9,870) (10,339) (18,942)
TOTAL OTHER FINANCING SOURCES (USES)2,178 (2,080) (38) (838) (38)
Extraordinary Item - Dissolution of RDA - - - (4,669) (11,839)
INCREASE (DECREASE) IN FUND BALANCES (6,781)$ 10,115$ 11,730$ 3,448$ 1,230$
DEBT SERVICE AS A PERCENTAGE OF
NON-CAPITAL EXPENDITURES 3.6%3.7%3.3%5.8%4.5%
**** Beginning with the fiscal year ended September 30, 2017, capital outlay expenditures are no longer presented separately but are included
as part of functional expenditures. However, capital outlay expenditures are excluded in the calculation of debt service as a percentage
of non-capital expenditures.
***** Beginning with the fiscal year ended June 30, 2019, non-departmental expenditures are no longer presented separately but are
included as part of functional expenditures.
****** Human Resources was combined with the City Manager's Office in the year ended June 30, 2020.
CITY OF HUNTINGTON BEACH
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS - LAST TEN FISCAL YEARS
(In Thousands)
September 30,
(Modified Accrual Basis of Accounting)
Fiscal Year Ended
304
Fiscal Year
Common
Property Public Utilities Total Secured Unsecured
Total Assessed
Valuation
Total Direct Tax
Rate
2011-2012 25,480,770 72,602 25,553,372 1,170,004 26,723,376 0.17082
2012-2013 26,927,738 60,802 26,988,540 1,056,938 28,045,478 0.17082
2013-2014 28,005,989 53,702 28,059,691 1,106,038 29,165,729 0.17082
2014-2015 29,723,274 74,102 29,797,376 989,809 30,787,185 0.17082
2015-2016 31,193,211 66,802 31,260,013 1,132,728 32,392,741 0.17082
2016-2017 32,540,317 55,802 32,596,119 1,067,760 33,663,879 0.17082
2017-2018 34,199,035 41,102 34,240,137 1,100,077 35,340,214 0.17082
2018-2019 35,941,648 61,202 36,002,850 1,117,879 37,120,729 0.17082
2019-2020 37,741,095 518 37,741,613 1,145,838 38,887,451 0.17082
2020-2021 39,449,688 518 39,450,206 1,111,018 40,561,224 0.17082
Source: County of Orange Auditor Controller
Fiscal Year
City Basic Rate
(1), (2) City Other School Districts
Metro Water
District Others
2011-2012 0.15582 0.01500 0.58334 0.00370 0.32513 1.08299
2012-2013 0.15582 0.01500 0.60412 0.00350 0.30798 1.08642
2013-2014 0.15582 0.01500 0.59841 0.00350 0.31444 1.08717
2014-2015 0.15582 0.01500 0.62448 0.00350 0.29444 1.09324
2015-2016 0.15582 0.01500 0.07615 0.00350 0.84418 1.09465
2016-2017 0.15582 0.01500 0.07786 0.00350 0.83599 1.08817
2017-2018 0.15582 0.01500 0.09970 0.00350 0.84418 1.11820
2018-2019 0.15582 0.01500 0.09246 0.00350 0.84418 1.11096
2019-2020 0.15582 0.01500 0.07541 0.00350 0.85665 1.10638
2020-2021 0.15582 0.01500 0.07541 0.00350 0.84418 1.09391
Note: Rates are per $100 of assessed valuation
Source: County of Orange Auditor Controller
(1) Excludes rates associated with Mello-Roos Districts
(2) In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This 1% is shared
by all taxing agencies for which the subject property resides. In 1986, the State Constitution was amended to allow rates over
the 1% base rate for voter approved general obligation debt. Valuations of real property are frozen at the value of the property
in 1975, with an allowable adjustment up to 2% per year for inflation. However, property is assessed to its current value when
a change of ownership occurs. New construction, including tenant improvements, is assessed at its current value.
Direct
Total Direct and
Overlapping
Overlapping
CITY OF HUNTINGTON BEACH
ASSESSED AND ACTUAL VALUATION
OF ALL TAXABLE PROPERTY (EXCLUDING REDEVELOPMENT AGENCY)
LAST TEN FISCAL YEARS
LAST TEN FISCAL YEARS
(In Thousands)
PROPERTY TAX RATES
ALL DIRECT AND
OVERLAPPING GOVERNMENTS
TAX RATE 04-001
LARGEST AREA IN CITY
305
Fiscal Year Total Levy Amount
Percentage
of Levy
Delinquent
Tax
Collections Amount
Percentage
of Levy
Delinquent
Taxes
Receivable
Delinquency
Percent
Secured Taxes
2011-2012 44,304 42,611 96.2% 951 43,562 98.3% 660 1.5%
2012-2013 47,162 45,722 96.9% 855 46,577 98.8% 565 1.2%
2013-2014 49,808 48,452 97.3% 656 49,108 98.6% 545 1.1%
2014-2015 52,188 50,759 97.3% 576 51,335 98.4% 519 1.0%
2015-2016 55,886 53,916 96.5% 546 54,462 97.5% 1,263 2.3%
2016-2017 58,258 56,481 96.9% 525 57,006 97.9% 1,253 2.2%
2017-2018 62,418 59,731 95.7% 474 60,205 96.5% 2,073 3.3%
2018-2019 63,934 62,222 97.3% 622 62,844 98.3% 920 1.4%
2019-2020 66,411 64,767 97.5% 496 65,263 98.3% 1,092 1.6%
2020-2021 69,341 67,887 97.9% 626 68,513 98.8% 926 1.3%
Unsecured Taxes
2011-2012 1,863 1,731 92.9%28 1,759 94.4%68 3.7%
2012-2013 1,882 1,653 87.8%23 1,676 89.1%62 3.3%
2013-2014 1,922 1,693 88.1%33 1,726 89.8%76 4.0%
2014-2015 2,016 1,839 91.2%37 1,876 93.1%69 3.4%
2015-2016 1,925 1,740 90.4%35 1,775 92.2%39 2.0%
2016-2017 1,899 1,692 89.1%23 1,715 90.3%34 1.8%
2017-2018 1,964 1,829 93.1%28 1,857 94.6%26 1.3%
2018-2019 1,964 1,804 91.9%20 1,824 92.9%29 1.5%
2019-2020 2,038 1,906 93.5%15 1,921 94.3%43 2.1%
2020-2021 2,143 1,955 91.2%26 1,981 92.4%82 3.8%
Community Facilities Districts
2011-2012 4,106 4,091 99.6%3 4,094 99.7%2 0.0%
2012-2013 4,093 4,077 99.6%4 4,081 99.7%4 0.1%
2013-2014 3,968 3,957 99.7%6 3,963 99.9%- 0.0%
2014-2015 3,981 3,967 99.6%1 3,968 99.7%2 0.1%
2015-2016 4,121 4,106 99.6%9 4,115 99.9%2 0.0%
2016-2017 4,098 4,085 99.7%2 4,087 99.7%- 0.0%
2017-2018 4,141 4,128 99.7%5 4,133 99.8%- 0.0%
2018-2019 4,099 4,086 99.7%3 4,089 99.8%1 0.0%
2019-2020 4,053 4,027 99.4%2 4,029 99.4%14 0.3%
2020-2021 3,949 3,937 99.7%- 3,937 99.7%- 0.0%
Note:
The levy and tax year is for July 1st through June 30th and does not include the Redevelopment Agency.
2011/2012 to current fiscal year includes the following:
Unsecured: includes aircraft unsecured tax. Does not include CFD.
Miscellaneous: excluded from all tables.
Delinquency Amount: reflects the "unpaid" amounts as stated in the OC Auditor-Controller website.
Secured: includes supplemental, st ltg reorg, nuisance abatement, weed abatement, retirement override,
tax admin charges, and community interest. Does not include CFD.
CITY OF HUNTINGTON BEACH
Collected within the Fiscal
Year of the Levy Total Collections
Source: County of Orange Auditor Controller's Office
(In Thousands)
LAST TEN FISCAL YEARS
PROPERTY TAX LEVIES AND COLLECTIONS
306
2020-2021
Taxable Assessed Value Percent
(In Thousands)of Total TAV
AES Huntington Beach Energy, LLC 793,339$ 1.96%
Bella Terra Associates LLC 389,326 0.96%
PCH Beach Resort LLC 225,367 0.56%
DCO Pacific City LLC 221,223 0.55%
The Waterfront Hotel LLC 145,907 0.36%
One Pacific Plaza Owner LLC 127,420 0.31%
Pacific City Hotel LLC 118,448 0.29%
Bella Terra Villas LLC 110,349 0.27%
PC Group Retail LLC 92,869 0.23%
Onni Huntington Beach LLC 89,960 0.22%
Total Top Ten 2,314,208 5.71%
All Other Property Taxpayers 38,247,016 94.29%
City Total 40,561,224$ 100.00%
2011-2012
Taxable Assessed Value Percent
(In Thousands)of Total TAV
The Boeing Company/McDonnell Douglas Corporation 302,894$ 1.13%
Bella Terra Associates LLC 299,064 1.12%
Mayer Financial LP 199,083 0.74%
CIM Huntington LLC 151,838 0.57%
Pacific Sands LLC 84,960 0.32%
AES Huntington Beach LLC 72,600 0.27%
United Dominion Realty LP 68,702 0.26%
Seacliff Village Shopping Center Inc 64,483 0.24%
Cambro Manufacturing Company 60,817 0.23%
NF Huntington Plaza LP 59,496 0.22%
Total Top Ten 1,363,937 5.10%
All Other Property Taxpayers 25,359,439 94.90%
City Total 26,723,376$ 100.00%
Source: County of Orange Auditor Controller's Office
Note: Information provided for the period from July 1st through June 30th.
TOP TEN PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
CITY OF HUNTINGTON BEACH
307
THIS PAGE INTENTIONALLY LEFT BLANK
308
September 30,
Long-Term Indebtedness 2021 2020 2019 2018***2017
Governmental Activities:
Judgement Obligation Bonds -$ -$ -$ -$ -$
Public Financing Authority:
2010(a) Lease Revenue Bonds - 7,410 8,235 9,030 9,030
2011(a) Lease Revenue Bonds - 15,725 17,770 19,735 19,735
2014(a) Lease Revenue Bonds 11,880 12,530 13,145 13,740 13,740
2020(a) Lease Revenue Bonds 4,835 - - - -
2020(b) Lease Revenue Bonds 12,830 - - - -
Total Public Financing Authority 29,545 35,665 39,150 42,505 42,505
Other Long-Term Obligations:
Leases Payable 12,753 5,241 5,083 6,079 6,286
PARS Payable - - - - -
Section 108 Loan City - - - 430 430
LED Lighting Phase I 432 546 656 762 866
CEC 2,457 2,588 2,818 3,000 3,000
I-Bank 1,882 2,171 2,454 2,730 2,730
Pension Obligation Bonds 341,501 - - - -
Total Other Long-Term Obligations 359,025 10,546 11,011 13,001 13,312
Total Long-Term Obligations - Governmental Activities 388,570 46,211 50,161 55,506 55,817
Long-Term Obligations - Business-Type Activities:
Leases Payable - - - - -
Pension Obligation Bonds 22,144 - - - -
Total Long-Term Obligations - Business-Type Activities 22,144 - - - -
Total Long Term Obligations - Governmental Activities and
Business-Type Activities 410,714$ 46,211$ 50,161$ 55,506$ 55,817$
2021 2020 2019 2018***2017
Population 198,039 200,748 202,265 201,761 202,413
Debt Per Capita 2,074$ 230$ 248$ 275$ 276$
Total Personal Income (In Thousands)*9,659,154$ 9,450,814$ 9,222,677$ 8,849,843$ 8,878,441$
Per Capita Personal Income*48,774$ 47,078$ 45,597$ 43,863$ 43,863$
Unemployment Rate**4.70% 8.60% 2.60% 2.70%2.80%
Total Employment**105,600 96,200 110,500 109,900 103,200
* Source: Claritas, Inc.
** Source: State of California Employment Development Department
*** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from
October 1, 2017 to June 30, 2018.
Fiscal Year Ended
CITY OF HUNTINGTON BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(In Thousands)
June 30,
309
Long-Term Indebtedness 2016 2015 2014 2013 2012
Governmental Activities:
Judgement Obligation Bonds 659$ 1,634$ 2,574$ 3,474$ 4,339$
Public Financing Authority:
2010(a) Lease Revenue Bonds 9,795 10,525 11,230 11,910 12,565
2011(a) Lease Revenue Bonds 21,650 24,985 28,165 31,195 34,155
2014(a) Lease Revenue Bonds 14,315 14,865 - - -
2020(a) Lease Revenue Bonds - - - - -
2020(b) Lease Revenue Bonds - - - - -
Total Public Financing Authority 45,760 50,375 39,395 43,105 46,720
Other Long-Term Obligations:
Leases Payable 4,130 - - - 290
PARS Payable - - 29 56 4,517
Section 108 Loan City 625 805 975 1,135 1,285
LED Lighting Phase I 966 1,063 - - -
CEC 3,000 - - - -
I-Bank 3,000 - - - -
Pension Obligation Bonds - - - - -
Total Other Long-Term Obligations 11,721 1,868 1,004 1,191 6,092
Total Long-Term Obligations - Governmental Activities 58,140 53,877 42,973 47,770 57,151
Long-Term Obligations - Business-Type Activities:
Leases Payable - - - - 3
Pension Obligation Bonds - - - - -
Total Long-Term Obligations - Business-Type Activities - - - - 3
Total Long Term Obligations - Governmental Activities and
Business-Type Activities 58,140$ 53,877$ 42,973$ 47,770$ 57,154$
2016 2015 2014 2013 2012
Population 201,919 198,389 195,999 193,616 192,524
Debt Per Capita 288$ 272$ 219$ 247$ 297$
Total Personal Income (In Thousands)*8,880,801$ 8,725,545$ 8,278,410$ 7,839,899$ 7,573,894$
Per Capita Personal Income*43,982$ 43,982$ 42,237$ 40,492$ 39,340$
Unemployment Rate**3.90% 3.90% 3.60% 3.60% 4.30%
Total Employment**107,200 104,000 120,200 120,200 119,600
September 30,
Fiscal Year Ended
CITY OF HUNTINGTON BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(In Thousands)
310
2011-2012 -
2012-2013 -
2013-2014 -
2014-2015 -
2015-2016 -
2016-2017 -
2017-2018 -
2018-2019 -
2019-2020 -
2020-2021 -
CITY OF HUNTINGTON BEACH
LAST TEN FISCAL YEARS
Assessed
Valuation
Debt Limit - 12% of
Assessed Valuation
Debt Applicable
to Limit
Legal Debt
MarginFiscal Year
(In Thousands)
LEGAL DEBT MARGIN
26,723,376 3,206,805 3,206,805
28,045,478 3,365,457 3,365,457
29,165,729 3,499,887 3,499,887
30,787,185 3,694,462 3,694,462
32,392,741 3,887,129 3,887,129
33,663,879 4,039,665 4,039,665
35,340,214 4,240,826 4,240,826
4,867,347 4,867,347
37,120,729 4,454,487 4,454,487
38,887,451 4,666,494 4,666,494
40,561,224
311
2020/21 Assessed Valuation: $44,615,313,174
Debt Repaid with Property Taxes (Tax and Assessment Debt):
Overlapping Tax and Assessment Debt
Percent
Applicable*
Debt Applicable
to City
Metropolitan Water District 1.365% 366,230
Coast Community College District 28.593% 253,416,850
Huntington Beach Union High School District 73.089% 127,602,429
Fountain Valley School District 26.863% 15,812,905
Huntington Beach City School District 99.949% 153,985,389
Ocean View School District 93.589% 33,205,377
Westminster School District 23.996% 26,967,358
Los Alamitos Unified School District Facilities District No. 1 1.190% 2,394,342
City of Huntington Beach Community Facilities Districts (1990-1, 2000-1, 2002-1, 2003-1) 100.000% 28,395,000
Total Overlapping Tax and Assessment Debt 642,145,880$
Direct and Overlapping General Fund Debt
Orange County General Fund Obligations 6.806% 25,991,093
Orange County Pension Obligations 6.806% 33,030,757
Orange County Board of Education Certificates of Participation 6.806% 837,819
North Orange County Regional Occupation Program Certificates of Participation 0.087% 7,473
Coast Community College District General Fund Obligations 28.593% 640,483
Coast Community College District Pension Obligation Bonds 28.593% 651,920
Huntington Beach Union High School District Certificates of Participation 73.089% 44,884,752
Los Alamitos Unified School District Certificates of Participation 1.069% 390,500
Huntington Beach School District General Fund Obligations 99.949% 17,288,610
Ocean View School District Certificates of Participation 93.589%16,836,661
Westminster School District General Fund Obligations 23.993% 7,480,753
City of Huntington Beach General Fund Obligations: 100.000% 47,069,157
City of Huntington Beach Pension Obligation Bonds 100.000% 363,645,000
Total Direct and Overlapping General Fund Obligation Debt 558,754,978$
Overlapping Tax Increment Debt (Successor Agency)100.000% 4,985,000
Total Direct Debt 410,714,157$
Total Overlapping Debt 795,171,701
Combined Total Debt 1,205,885,858$
(1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations.
Ratios to Adjusted Assessed Valuations
Combined Direct Debt ($393,621,687) 0.92%
Combined Total Debt 2.70%
Ratios to Redevelopment Successor Agency Incremental Valuation ($3,835,496,390)
Total Overlapping Tax Increment Debt 0.13%
Source: California Municipal Statistics and City of Huntington Beach Finance Department
STATEMENT OF DIRECT AND
OVERLAPPING BONDED DEBT
JUNE 30, 2021
CITY OF HUNTINGTON BEACH
* The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by
determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed
value.
312
2021 % of total
The Boeing Company 3,112 2.95%
Safran Cabin Inc 884 0.84%
No Ordinary Moments 646 0.61%
Hyatt Regency Huntington Beach 641 0.61%
Boardriders Wholesale LLC 559 0.53%
Cambro Manufacturing 550 0.52%
Huntington Beach Hospital 527 0.50%
Wal-Mart 462 0.44%
Waterfront Hilton Beach Resort 450 0.43%
Huntington Valley Healthcare 381 0.36%
Total of top 10 8,212 7.78%
All others 97,388 92.22%
Total employment (public and private)105,600 100.00%
2012 % of total
The Boeing Company 4,676 4.06%
Quiksilver 1,594 1.38%
Cambro MFG Co.951 0.83%
Ensign United States Drilling 925 0.80%
Hyatt Regency Huntington Beach 641 0.56%
C & D Aerospace 555 0.48%
Huntington Beach Hospital 520 0.45%
Rainbow Disposal 408 0.35%
Huntington Beach Healthcare 381 0.33%
Wal-Mart 379 0.33%
Total of top 10 11,030 9.58%
All others 104,070 90.42%
Total employment (public and private)115,100 100.00%
Source: Finance Department, City of Huntington Beach
CITY OF HUNTINGTON BEACH
PRINCIPAL PRIVATE EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
313
General Government:2021 2020 2019 2018***2017 2016 2015 2014 2013 2012
City Council 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
City Manager 18.00 18.00 12.50 12.50 11.50 11.50 11.50 11.50 7.00 7.00
City Treasurer 1.50 1.50 2.00 2.00 2.00 1.50 1.50 1.50 1.50 1.50
City Attorney 11.00 11.00 11.00 11.00 12.00 11.00 11.00 11.00 11.00 11.00
City Clerk 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Finance 31.50 31.50 33.00 33.00 33.00 32.50 31.50 31.50 29.50 29.50
Human Resources **- - 15.00 15.00 15.00 15.00 15.00 15.00 14.50 15.00
Community Development 54.00 54.00 44.00 44.00 44.00 43.50 44.00 43.00 42.75 42.75
Information Systems 23.00 22.00 30.00 30.00 30.00 30.00 30.00 30.00 29.50 29.50
Economic Development *- - - - - - - - 4.50 5.50
Library Services 27.25 23.25 28.25 28.25 28.25 28.25 28.25 28.25 27.75 27.75
Fire 200.00 200.00 198.00 198.00 198.00 198.00 198.00 196.50 176.50 176.50
Police 357.00 356.00 365.50 364.50 364.50 364.50 361.50 360.50 358.50 363.00
Community Services 33.00 37.00 36.00 36.00 44.00 44.00 43.00 43.00 56.00 61.00
Public Works 201.00 199.00 207.00 207.00 199.00 199.00 198.00 196.00 196.00 196.00
962.25 958.25 987.25 986.25 986.25 983.75 978.25 972.75 960.00 971.00
Source: Finance Department, City of Huntington Beach
* Economic Development was combined with Community Development in the year ended June 30, 2020. Previously, it was combined with
the City Manager's Office as of the year ended September 30, 2014.
** Human Resources was combined with City Manager's Office in the year ended June 30, 2020.
*** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from
October 1, 2017 to June 30, 2018.
Actual
CITY OF HUNTINGTON BEACH
FULL-TIME ACTUAL AND BUDGETED CITY EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
314
Function/Program 2021 2020 2019 2018*** 2017
Finance:
Water Bills Processed 637,920 636,708 639,245 476,290 632,997
Active Business Licenses 19,011 20,910 21,414 21,782 22,074
Accounts Receivable Billings Processed 20,183 25,687 30,217 25,000 34,963
City Clerk:
Passports Issued ****418 4,579 7,024 5,757 7,408
Planning:
Entitlements Processed 112 162 221 206 216
Plan Reviews 1,955 1,358 1,542 1,466 1,376
Field Inspection Complaints 11,899 11,610 8,183 7,005 8,459
Code Violation Cases 4,473 3,260 4,786 4,219 3,981
Building:
Number of Permits Issued 9,075 8,855 9,807 7,490 9,728
Number of Inspections Completed 26,710 32,859 36,562 30,501 38,796
Value of Construction Permits (Thousands of Dollars) 166,000 169,393 135,910 109,462 216,252
Processed Number of Certificate of Occupancies*655 515 686 523 740
Completed Plan Reviews 4,673 3,469 3,491 2,771 4,172
Counter Visits 115 14,922 21,409 16,498 21,731
Fire:
Inspections 4,008 5,965 6,140 3,963 2,758
Responses 20,428 21,068 20,354 14,490 20,555
Ocean Rescues 4,116 2,487 4,953 3,530 3,639
Estimated Beach Visitors 7,910,293 6,712,125 10,577,290 12,522,640 13,339,518
Police:
Physical Arrests 5,363 5,785 5,979 4,614 5,298
Parking Violations 95,753 59,484 79,069 54,500 70,846
Traffic Violations 10,920 12,105 13,314 11,869 19,916
Community Services:
Park/Open Space Acreage 1,072 1,066 1,066 1,065 1,065
Enrollment in Recreation Classes 15,511 28,952 37,978 27,152 37,968
Public Works:
Water Sold (Acre Feet)**27,731 25,966 26,251 19,777 25,944
Gallons of Sewage Pumped Per Day**19 million 19 million 19 million 19 million 22 million
Library:
Items in Collection 291,444 294,849 293,995 292,037 288,599
Items Borrowed 481,523 779,124 942,821 655,626 943,642
* Beginning the 2013/14 Fiscal Year, the Building Department no longer processes Certificate of Occupancies.
** Reduction of estimate is the result of the Governor's executive order to reduce water consumption.
*** The 2017-18 period reflects nine months of activity only as the fiscal year change resulted in a nine month reporting period from
October 1, 2017 to June 30, 2018.
**** Passport acceptance was closed to the public from June 2020 through May 2021 due to COVID-19. It was reopened on June 15, 2021
Source: Various departments of the City of Huntington Beach
CITY OF HUNTINGTON BEACH
OPERATING INDICATORS BY FUNCTION/ACTIVITY
LAST TEN FISCAL YEARS
315
Function/Program 2016 2015 2014 2013 2012
Finance:
Water Bills Processed 635,052 536,684 630,240 628,207 646,229
Active Business Licenses 21,420 21,424 20,450 21,127 22,304
Accounts Receivable Billings Processed 30,826 38,594 42,360 45,422 45,422
City Clerk:
Passports Issued 5,623 5,121 4,598 4,220 3,850
Planning:
Entitlements Processed 221 280 204 231 205
Plan Reviews 1,653 1,595 1,466 1,575 1,184
Field Inspection Complaints 7,951 8,233 7,030 7,301 6,105
Code Violation Cases 4,324 4,710 2,545 2,385 2,573
Building:
Number of Permits Issued 10,981 10,670 9,348 8,970 8,444
Number of Inspections Completed 39,380 38,320 36,142 33,962 31,224
Value of Construction Permits (Thousands of Dollars) 283,910 234,946 216,343 248,246 190,992
Processed Number of Certificate of Occupancies*n/a n/a n/a 477 647
Completed Plan Reviews 4,172 3,815 3,148 n/a n/a
Counter Visits 23,492 21,893 21,326 20,854 19,777
Fire:
Inspections 5,132 6,499 6,641 5,087 6,974
Responses 20,279 19,562 15,815 15,608 15,040
Ocean Rescues 3,977 5,371 6,426 4,195 4,669
Estimated Beach Visitors 12,272,030 11,803,943 12,035,134 11,016,615 8,906,592
Police:
Physical Arrests 5,112 4,854 4,303 4,237 5,774
Parking Violations 90,361 83,453 74,668 72,347 77,282
Traffic Violations 17,639 17,596 16,330 13,016 16,916
Community Services:
Park/Open Space Acreage 1,062 1,062 1,062 1,062 1,062
Enrollment in Recreation Classes 34,424 30,228 30,184 30,218 32,817
Public Works:
Water Sold (Acre Feet)**24,505 24,763 29,279 28,354 27,784
Gallons of Sewage Pumped Per Day**19 million 19 million 22 million 22 million 22 million
Library:
Items in Collection 285,814 343,655 332,092 385,901 420,956
Items Borrowed 921,105 908,656 937,533 892,543 888,019
CITY OF HUNTINGTON BEACH
OPERATING INDICATORS BY FUNCTION/ACTIVITY
LAST TEN FISCAL YEARS
(Continued)
316
Library Services One Main Library and Four Branches
Fire:
Fire Stations 8
Police:
Stations One Main Station and Three Substations
Community Services:
Acreage of Parks 1,066
Community Centers 6
Public Works:
Centerline Square Miles of Streets Maintained 451
Miles of Beach Maintained 4.7
Miles of Storm Drains Maintained 120
Miles of Sewer Maintained 362
Source: Various departments of the City of Huntington Beach
JUNE 30, 2021
CAPITAL ASSET STATISTICS BY FUNCTION/ACTIVITY
CITY OF HUNTINGTON BEACH
317
REQUIRED AUDIT COMMUNICATIONS
Honorable Mayor and City Council
City of Huntington Beach
Huntington Beach, California
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Huntington Beach for the year ended June 30, 2021. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing
standards, Government Auditing Standards and the Uniform Guidance, as well as certain
information related to the planned scope and timing of our audit. We have communicated
such information in our letter to you dated June 17, 2021. Professional standards also
require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the City of Huntington Beach are described in Note 1
to the financial statements. The City implemented Governmental Accounting Standards
Board (GASB) Statement No. 84 related to Fiduciary Activities and GASB Statement No. 98
that changed the name of the Comprehensive Annual Financial Statements to the Annual
Comprehensive Financial Statements. We noted no transactions entered into by the City of
Huntington Beach during the year for which there is a lack of authoritative guidance or
consensus. All significant transactions have been recognized in the financial statements in
the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and
current events and assumptions about future events. Certain accounting estimates are
particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected.
The most sensitive estimates affecting the City of Huntington Beach’s financial statements
were:
J udgments involving the estimated useful lives and depreciation methodology
used for capital assets, including certain infrastructure. We evaluated
management’s judgments for reasonableness.
Judgments as to which City capital projects should be capitalized and depreciated
in the government-wide financial statements and proprietary funds. We
evaluated management’s judgments for reasonableness.
Judgments relating to the collectability of accounts and notes receivable. We
evaluated management’s judgments for reasonableness.
Judgments with respect to recording claims payable and remediation obligations.
We evaluated management’s judgments for reasonableness.
318
Judgments involving calculation of the pension liability. We evaluated the
actuarial valuation report supporting the calculations.
Judgments involving the calculation of the other post-employment benefit
(OPEB) liability. We evaluated the actuarial valuation report supporting the
calculations.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are clearly trivial, and communicate them
to the appropriate level of management. Management has corrected those misstatements.
We recorded material adjustments to the fiduciary funds related to the implementation of
GASB 84.Additionally, the following immaterial misstatements detected as a result of audit
procedures were not corrected by management:
recording LAIF and OCIP investments at fair value,
recording prior year adjustment to allocate interest to the Pension Liability debt
service fund,
recording the bond premium and deferred refunding charge on the 2020 Lease
Revenue Bonds, and
reclassification of operating expenses to change in joint venture investment in the
nonoperating section of the Water Fund.
Management believes these adjustments are not material, either individually or in the
aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting,
reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditor’s report. We are pleased to report that
no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated December 16, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing
and accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the City of Huntington Beach’s
financial statements or a determination of the type of auditor’s opinion that may be
expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To
our knowledge, there were no such consultations with other accountants.
319
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles
and auditing standards, with management each year prior to retention as the City of
Huntington Beach’s auditors. However, these discussions occurred in the normal course of
our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion and analysis, budgetary
comparison information for the General Fund and each major special revenue fund, schedule
of funding progress, schedule of changes in net pension liability and related ratios, schedule
of pension contributions, schedule of money-weighted rate of return, schedule of changes in
net OPEB liability and related ratios and schedule of OPEB contributions, which are required
supplementary information (RSI) that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an
opinion or provide any assurance on the RSI.
We were engaged to report on supplementary information, which accompany the financial
statements but are not RSI. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing
the information to determine that the information complies with accounting principles
generally accepted in the United States of America, the method of preparing it has not
changed from the prior period, and the information is appropriate and complete in relation
to our audit of the financial statements. We compared and reconciled the supplementary
information to the underlying accounting records used to prepare the financial statements or
to the financial statements themselves.
We were not engaged to report on introductory section and the statistical section, which
accompany the financial statements but are not RSI. Such information has not been
subjected to the auditing procedures applied in the audit of the basic financial statements,
and accordingly, we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the information and use of the City Council and
management of the City of Huntington Beach and is not intended to be, and should not be,
used by anyone other than these specified parties.
Irvine, California
December 16, 2021
320
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Air Quality
Special Revenue Fund Performed
in Accordance with Government Auditing Standards
City Council
City of Huntington Beach
Huntington Beach, California
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, Air Quality
Management District Fund of the City of Huntington Beach, California, as of and for the year
ended June 30, 2021, and the related notes to the financial statements, which collectively
comprise the Air Quality Management District Fund of the City of Huntington Beach’s basic
financial statements, and have issued our report thereon dated December 16, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Air Quality
Management District Fund's internal control over financial reporting (internal control) as a
basis for designing audit procedures that are appropriate in the circumstances for the purpose
of expressing our opinions on the financial statements, but not for the purpose of expressing
an opinion on the effectiveness of the Air Quality Management District Fund's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Air Quality Management
District Fund's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be
prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
321
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Air Quality Management District
Fund's financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
including applicable provisions of Assembly Bill 2766 (AB2766) Chapter 1705 (Health and
Safety Code Sections 44220 through 44247), noncompliance with which could have a direct
and material effect on the financial statements. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Irvine, California
December 16, 2021
322
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor and City Council
City of Huntington Beach, California
We have performed the procedures enumerated below on the City of Huntington Beach,
California (City) appropriations limit worksheets for compliance with the requirements of
Section 1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2021.
The City is responsible for compliance with Section 1.5 of Article XIIIB of the California
Constitution.
The City has agreed to and acknowledged that these procedures are appropriate to meet
the intended purpose of evaluating compliance with the requirements of Section 1.5 of
Article XIIIB of the California Constitution and the League of California Cities publication
entitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June
30, 2021. This report may not be suitable for any other purpose. The procedures performed
may not address all the items of interest to a user of this report and may not meet the
needs of all users of this report and, as such, users are responsible for determining whether
the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the worksheets referred to above and compared the limit and
annual adjustment factors included in those worksheets to the limit and annual
adjustment factors that were adopted by resolution of the City Council. We also
compared the population and inflation options included in the aforementioned
worksheets to those that were selected by a recorded vote.
Results: No exceptions were noted as a result of our procedures.
2. We recalculated the mathematical computations reflected in the City’s
worksheets.
Results: No exceptions were noted as a result of our procedures.
3. We compared the current year information used to determine the current year
limit and agreed it to worksheets prepared by the City and to information
provided by the State Department of Finance.
Results: No exceptions were noted as a result of our procedures.
4. We compared the amount of the prior year appropriations limit presented in the
worksheets to the amount adopted by the City Council for the prior year.
Results: No exceptions were noted as a result of our procedures.
323
The Honorable Mayor and City Council
City of Huntington Beach, California
Page Two
We were engaged by the City to perform this agreed-upon procedures engagement and
conducted our engagement in accordance with standards established by the American
Institute of Certified Public Accountants. We were not engaged to and did not conduct an
examination or review, the objective of which would be the expression of an opinion or
conclusion, respectively on the worksheets referred to above. Accordingly, we do not
express such an opinion or conclusion. Had we performed additional procedures, other
matters might have come to our attention that would have been reported to you. No
procedures have been performed with respect to the determination of the appropriation
limit for the base year, as defined by the League publication entitled Article XIIIB
Appropriations Limitation Uniform Guidelines.
We are required to be independent of the City and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements related to our agreed-upon procedures
engagement.
This report is intended solely for the information and use of the Management of the City of
Huntington Beach, California and is not intended to be, and should not be, used by anyone
other than the specified party.
Irvine, California
December 16, 2021
324
Recommended Adjustments by Fund:
APPROPRIATION INCREASE
Fund No Fund Name Appropriation Revenue Offset Net Increase Dept
100 General Fund 120,000 ‐ 120,000 Administrative Services
100 General Fund 120,000 ‐ 120,000 City Manager
100 General Fund 790,000 790,000 ‐ Community Development
100 General Fund 100,000 100,000 ‐ Finance
100 General Fund 2,128,584 2,081,284 47,300 Fire
100 General Fund 300,000 ‐ 300,000 Police
100 General Fund 235,000 ‐ 235,000 Public Works
100 General Fund 1,300,000 ‐ 1,300,000 Non‐Departmental
General Fund Subtotal 5,093,584 2,971,284 2,122,300
228 Park Development Impact ‐ Residential 150,000 ‐ 150,000 Public Works
238 Emergency Operations Center* 2,000,000 2,000,000 ‐ Non‐Departmental
308 In‐Lieu Parking Improvements 30,000 ‐ 30,000 Community Development
504 Refuse Collection Service 195,000 195,000 ‐ Public Works
807 Energy Efficiency 238,000 ‐ 238,000 Public Works
Other Funds Subtotal 2,613,000 2,195,000 418,000
All Funds Total 7,706,584 5,166,284 2,540,300
* Additional appropriations in excess of $2 million to be budgeted as needed in the Emergency Operation Center
Fund 238 for COVID response efforts and will be fully offset by FEMA reimbursement revenues.
ATTACHMENT 3
Fiscal Year 2021/2022 Recommended Mid‐Year Budget Adjustments
325
Fund No Fund Name Description Amount Department
100 General Fund Technical assistance services 125,100 Community Development
100 General Fund Mobile crisis response 1,500,000 Non‐Departmental
1,625,100
ATTACHMENT 4
Fiscal Year 2021/2022 Recommended Mid‐Year Professional Services Authority
326
327
328
329
330
331
332
333
334
335
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-132 MEETING DATE:2/15/2022
Submitted by Councilmember Kalmick - Updating Bolsa Chica Annexation Feasibility Study
Direct staff to undertake an update of the Bolsa Chica Annexation Feasibility Study and return to
Council with a Study Session upon completion of that update, at which time the Council can discuss
the merit of annexation.
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™336
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: DAN KALMICK, CITY COUNCIL MEMBER
DATE: FEBRUARY 15, 2022
SUBJECT: UPDATING BOLSA CHICA ANNEXATION FEASIBILITY STUDY
Annexation of the Bolsa Chica State Ecological Reserve has been previously contemplated by the
city of Huntington Beach via a feasibility study prepared in 2009, updated in 2013 and last
discussed in 2015. The study determined that the annexation was generally fiscally neutral, but
there were outstanding questions on the part of the City Council and no direction was given to
pursue the annexation. With the incorporation of Sunset Beach and Brightwater, the annexation
of the unincorporated Bolsa Chica area would essentially complete the city's corporate boundary.
More importantly, the wetlands and uplands are ecological and tourist resources that would
complement the diverse portfolio of amenities that help to make Huntington Beach a destination
location. It is expected that some items in the 2009/2013 study would need to be updated.
RECOMMENDED ACTION
Motion to direct staff to undertake an update of the Bolsa Chica Annexation Feasibility Study and
return to Council with a Study Session upon completion of that update, at which time the Council
can discuss the merit of annexation.
337
City of Huntington Beach
2000 Main Street,
Huntington Beach, CA
92648
File #:22-137 MEETING DATE:2/15/2022
Submitted by Mayor Delgleize, Councilmember Carr and Councilmember Kalmick - Hosting a
Senior Resource Fair in Huntington Beach
Direct staff to work with the Senior Center and community partners to plan and implement a one-day
senior resource fair, targeting mobile home park residents and low-income seniors in the community.
City of Huntington Beach Printed on 2/9/2022Page 1 of 1
powered by Legistar™338
CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING – COUNCIL MEMBER ITEMS REPORT
TO: THE CITY COUNCIL
FROM: BARBARA DELGLEIZE, MAYOR
KIM CARR, CITY COUNCIL MEMBER
DAN KALMICK, CITY COUNCIL MEMBER
DATE: FEBRUARY 15, 2022
SUBJECT: HOSTING A SENIOR RESOURCE FAIR IN HUNTINGTON BEACH
Many of the City’s mobile home park residents are seniors who are on a limited, fixed income.
Approximately 40% of the City’s eighteen mobile home parks are senior parks. Recently, it has
been brought to the city council’s attent ion that many seniors living in these mobile home parks
are experiencing financial hardship due to increasing rent and the cost of living .
In partnership with the Senior Center, the Huntington Beach Council on Aging, utility companies,
state legislators and community partners, the City can help mobile home residents and seniors
by hosting a Senior Resource Fair. Seniors will be offered a variety of helpful guides, discounts,
and resources available through city programs and community partners.
Staff and community partners will be on hand connecting seniors with the information and
helping them sign up for programs that they may be eligible. Through this fair, the City can take
a proactive role in helping mobile home park residents and seniors reduce their financial burdens.
RECOMMENDED ACTION
Direct staff to work with the Senior Center and community partners to plan and implement a
one-day senior resource fair, targeting mobile home park residents and low-income seniors in
the community.
339