On the agenda: Bchd 2024/11/12 Finance Committee - Nov 12, 2024 — data center (Nov 13)

FINANCE COMMITTEE
BEACH CITIES HEALTH DISTRICT
November 12, 2024
6:00 PM
In Person:
Large Conference Room
1200 Del Amo St
Redondo Beach, CA 90277
Video Conference:
https://bchd-org.zoom.us/j/85882412222?pwd=gJBNKgMbgDqLzUtEIaeUKnUNRXOU2a.1
Password: beach
Phone Conference:
Dial In: (669) 444 - 9171
Webinar ID: 858 8241 2222
I.

Call to order - Principles of Civility
PRINCIPLES OF CIVILITY
These principles were established to create a climate of respect and inclusiveness that embraces
community members with diverse backgrounds and life experiences, deliberately seeks multiple
perspectives, and supports the free and open exchange of ideas and civil discourse.
LISTEN FIRST
Understand the views and reasoning of others.
RESPECT DIFFERENT OPINIONS
Invite and consider different perspectives.
BE COURTEOUS
Treat all colleagues, staff and members of the public in a professional and courteous manner.
Disruptions at the meeting will not be tolerated.
DISAGREE CONSTRUCTIVELY
Focus on the issues and do not personalize the discussion.
DELIBERATE THE POLICY, DO NOT DEBATE THE PERSON
Propose a course of action of mutual benefit that leads to consensus.
There will be Public Input opportunities for every agenda item.

Page 1 of 3 - BCHD Agenda November 12, 2024
1

COMMITTEE MEETING COMMENTS:
Note: Your comments will become part of the official meeting record. We invite you to provide your
name, but please do not provide any other personal information (i.e. phone numbers, addresses, etc.)
that you do not want to be published. If you offer public comment virtually during the Zoom Meeting, we
invite you to turn on your camera while you are speaking.
VIRTUAL VERBAL COMMENTS:
Option 1: Click Here: https://www.bchd.org/board-directors-meetings
Scroll down to Upcoming Events and click "E-Comments" and fill out the Request to Speak by 5:00pm
on Tuesday, November 12, 2024.
Option 2: You can also raise your hand during the Zoom Meeting when the Committee Chair opens the
agenda items for Public Discussion and you will be chosen in the order your hand is raised.
WRITTEN E-COMMENTS :
Click Here: https://www.bchd.org/board-directors-meetings
Scroll down to Upcoming Events and click "E-Comments" and filter through which agenda item you
would like to leave a written comment for by 5:00pm on Tuesday, November 12, 2024.
Written comments will not be read into the record. They will be on file with the District and available for
review.
II.

Public Discussion on items not on the agenda

III.

Discussion and Potential Action Item:
Approval of the August 19, 2024, Finance Committee Minutes

Finance Committee Minutes - August 19, 2024.pdf
IV.

CEO Update

V.

Discussion and Potential Action Item:
Recommend Approval to the Board of Directors of the FY23-24 BCHD Independent Audit
Report and accompanying Financial Statements

FY23-24 Audit Staff Memo_Nov2024.pdf
BCHD Annual Financial Report FY23-24 Draft.pdf
VI.

Discussion and Potential Action Item:
Recommend Approval of Investment Policy to the Board of Directors with no changes to the
Policy

BCHD Investment Policy Review Memo Nov2024.pdf
6110. Investment Policy 11-15-2023.pdf
VII.

Informational Item:
115 Trust Investment Portfolio Update

BCHD_PFM Portfolio Review_9.30.24_Final.pdf

Page 2 of 3 - BCHD Agenda November 12, 2024
2

Nov 2024 PARS Client Review.pdf
VIII.

Informational Item:
Mid-Year Budget Update

2024_11_12_Finance Committee Meeting.pdf
IX.

New Business

X.

Old Business

XI.

Adjourn

For information regarding how, to whom, and when a request for disability-related modification or
accommodation, including auxiliary aids or services, may be made by a person with a disability who requires
a modification or accommodation to participate in the public meeting, please contact Charlie Velasquez at
(310) 374-3426 ext 213.
Any materials required by law to be made available to the public prior to a meeting of the Board of Directors
can be inspected at the following address during normal business hours: 1200 Del Amo Street, Redondo
Beach, California 90277.
THE NEXT MEETING OF THE FINANCE COMMITTEE BEACH CITIES HEALTH DISTRICTIS
SCHEDULED FOR TBD IN THE BEACH CITIES ROOM AT THE BEACH CITIES HEALTH DISTRICT.

Page 3 of 3 - BCHD Agenda November 12, 2024
3

FINANCE COMMITTEE MEETING
BEACH CITIES HEALTH DISTRICT
August 19, 2024
A Special Meeting of the Finance Committee of the Beach Cities Health District was
called to order via Hybrid meeting at 6:01pm.
Board Members Present Virtually:

Jane Diehl Chair
Noel Chun, M.D., 2nd Chair

Committee Members:

Noah Weiner
Wayne Powell
Paul Reiner
Radiah Campbell
Eugene Solomon
Liliana Moynan (Student)

Members Absent:

Gina DeRosa
Cindy Smith
Kayla Smith (Student)

Staff Present:

Tom Bakaly, Chief Executive Officer
Charlie Velasquez, Executive Assistant to the CEO
Monica Suua, Chief Finance Officer
Kerianne Lawson, Chief Programs Officer
Ali Steward, Chief Partnership Development Officer
Yuliya Pigrish, Controller
Cristan Mueller, Chief Health Operations and
Communications Officer

AGENDA ITEM
Call to Order

DISCUSSION
Ms. Diehl called the meeting to order.

Committee Member
Introductions

Dr. Chun arrived during this agenda item.

Public Discussion

Ms. Diehl asked if any member of the public
would like to address the committee on any
issue not on the agenda.

ACTION OR FOLLOW-UP

Committee members introduced themselves.

PRINCIPLES OF CIVILITY
These principles were established to create a
climate of respect and inclusiveness that
embraces community members with diverse
backgrounds and life experiences, deliberately
seeks multiple perspectives, and supports the
Prepared By: Charlie Velasquez
October 2024

Page 1 of 5

4

AGENDA ITEM

DISCUSSION
free and open exchange of ideas and civil
discourse.

ACTION OR FOLLOW-UP

LISTEN FIRST
Understand the views and reasoning of others.
RESPECT DIFFERENT OPINIONS
Invite and consider different perspectives.
BE COURTEOUS
Treat all colleagues, staff and members of the
public in a professional and courteous manner.
Disruptions at the meeting will not be tolerated.
DISAGREE CONSTRUCTIVELY
Focus on the issues and do not personalize the
discussion.
DELIBERATE THE POLICY, DO NOT DEBATE
THE PERSON
Propose a course of action of mutual benefit that
leads to consensus.
There were no public comments.
Discussion and
potential Action Item:
Approval of the June 11,
2024 Finance Committee
Meeting Minutes

Defer until Dr. Chun arrives for a quorum. This
agenda item was taken out of order.

CEO Update

Mr. Bakaly highlighted the following:
• Welcome to new members and returning
members.
• Have over 1,000 volunteers – generated
staff time value and great health program
to people.
• Board put a $30M General Obligation
Bond on the November election
• We can give overview of our programs in
a future meeting.

Discussion and
Potential Action Item:
Recommend approval to
the District Board of

Ms. Diehl asked for a motion to approve the
Minutes of the June 11, 2024 Finance
Committee Minutes.

It was Moved and Seconded
(Chun/Weiner) to approve the
minutes of the June 11, 2024
Finance Meeting.
Dr. Chun, Ms. Diehl, Mr.
Weiner, Mr. Solomon, Mr.
Powell, Mr. Reiner, Ms.
Campbell voted Yes.
Motion Carried

Ms. Monica Suua highlighted the following:
• Overview of Policy #6130 – Principal
Preservation

Prepared By: Charlie Velasquez
July 2024

Page 2 of 5

5

AGENDA ITEM
Directors of revised
Policy 6130: Principal
Preservation

DISCUSSION
ACTION OR FOLLOW-UP
Purpose - For Long-Term
Preservation of continued
operations.
o How - Invest in Assets with LongTerm Future Return
o Overview of Measure of LongTerm Preservation
o Overview of Infeasible – Seismic
Retrofit of $90M (2019 Cost
estimate)
o Edit to policy was minor - to clarify It was Moved and Seconded
(Chun/Solomon) to
the procedure
recommend approval to the
District Board of Directors of
Mr. Reiner stated it shows it has gone down,
revised Policy 6130: Principal
what has changed? Ms. Suua stated that
spending is about the same, but the funding has Preservation
Dr. Chun, Ms. Diehl, Mr.
become smaller.
Weiner, Mr. Solomon Voted
Mr. Bakaly stated we can come back at the next Yes.
Motion Carried
meeting to show our funding sources.
o

Mr. Solomon asked if this policy is a subset of
the investment policy?
Ms. Suua stated we have an Investment policy
that we will look at in a November committee
meeting.
Informational and
Discussion Item:
Information Service
Management – RFP
SOW Review and
Discussion

This Item was taken out of order.
Ms. Suua highlighted the following:
• Overview of Request For Proposals
(RFP)
o Posted on the website 8/12,
papers 8/15, and 8/22
o Identify the provider of
Information Systems
Management to meet current and
foreseeable strategic business
needs
o Current pricing $174,970
annually, $14,581 monthly
o BCHD seeks a 3-year (plus 2year extension) term agreement
to receive IT Services.
o Not necessarily to switch from our
current provider but to open this
opportunity to the public.
o Requesting vendors to provide
media, website, pricing,

Prepared By: Charlie Velasquez
July 2024

Page 3 of 5

6

AGENDA ITEM

Informational and
Discussion Item:
FY24-25 Mid-Year
Budget Review Plans
and Discussion
FY23-24 Actual & FY2425 Budget Analysis

DISCUSSION
references, and answers to
questions.
o Questions for this RFP will be
publicly posted on the District
website after question deadline
(Aug 23).
• Overview of Scope of Work (SOW)
Summary
o Administrate all information
systems.
o Support hardware and software at
all levels.
o Provide recommendations on
best practices.
o Additional Services:
 On site
 Cyber Security
 Security Operations
Center (SOC)
• Plan to take to the Board in their
September Board Meeting.
This Item was taken out of order.

ACTION OR FOLLOW-UP

Ms. Suua, Mr. Bakaly, Ms. Steward and Ms.
Vixie highlighted the following:
• Overview of District Budget Shortfall “Big
Picture” Strategies
• Overview of FY24-25 Proposed Budget –
37 Programs & Services - PBB Score &
Dollar Fully Loaded Costs
• Overview of FY24-25 Budget By Health
Priority
• Overview of Next Steps: FY24-25 MidYear Review / November 2024
• Next Steps: FY24-25 Mid-Year Review
• Overview of Current allcove Beach Cities
Grant Funding
• Overview of allcove Operations Budget &
Grant and District Funding
• Overview of Funding allcove centers
• Overview of 514 Prospect Ave.
Demolition Funding Options
• Overview of Long-term Financial
Strategy:
• Overview of $8 million Demolition Cost
• Informational overview on General
Obligation Bond
• Overview of $30 million General
Obligation Bond Cost Estimate
Breakdown

Prepared By: Charlie Velasquez
July 2024

Page 4 of 5

7

AGENDA ITEM

•
•
•
•

DISCUSSION
Overview of Sale of Buildings - District
Real Estate Property Review
Overview of FY23-24 Year-End Projected
Financial Results
Overview of FY23-24 Actual & FY24-25
Budget Analysis & Opportunities/Risks
Next Steps
o Continue Exploring New Funding
Opportunities:
 CalAIM
 Medical Insurance Billing
 New Grants
 Philanthropic Giving
 Establish a non-profit
auxiliary entity
o Mid-Year Review in November –
Solve $250,000 FY25-26 shortfall
 Staffing Opportunities
 New revenue sources
 Minor Stage: Tight Budget
Controls, cut low priority
expenditures, Share
resources, etc.
 Prepare a plan to address
FY26-27 $1.3-$2.0 Million
shortfall.

ACTION OR FOLLOW-UP

Committee Discussion Highlights Include:
• Allcove Revenue Budget
• Overview of SPA-8 cities
• Considering accolades received,
regarding Upcoming Olympic games –
Significant Venues to approach Olympic
Committee to get introductions to
athletes to leverage for grant funding
• Bring KPI dashboard for each program
for next meeting
• Provide Talking Points to members
• Investment Portfolio overview
Old Business

There was no new business.

New Business

There was no old business

Adjournment

Ms. Diehl adjourned the meeting

Prepared By: Charlie Velasquez
July 2024

There being no further
business, Ms. Diehl Moved to
adjourn. Meeting adjourned
at 7:42pm

Page 5 of 5

8

Date:

November 8, 2024

To:

Finance Committee

From:

Monica Suua, CFO, CPA

Subject:

FY23-24 Independent Audit by Davis Farr, LLP

Please review the FY23-24 BCHD annual Independent Auditor’s Opinion and the Audited Financial
Statements to consider recommending approval to the Board of Directors Wednesday, November 20,
2024, meeting
The audit was performed by the accounting firm Davis Farr, LLP that was selected after a Request
for Qualifications process in May 2024 and approved by the District’s Board in June 2024. The
independent auditor’s opinion can be found on Pages 7 – 9 of the PDF BCHD Financial Statement
DRAFT FY23-24.
The financial statements of the Beach Cities Health District have been compiled in accordance with
the generally accepted accounting principles (GAAP) as established in the United States of America
and applied to governmental units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body that establishes accounting and financial reporting principles for
governmental units, such as the District.
To express an opinion on these financial statements, the auditors obtain audit evidence about the
amounts and disclosures in the Financial Statements based on risk assessments required GASB
standards. Part of that risk assessment considers the internal controls over financial reporting, and
they perform tests of certain provisions of law, regulations, contracts, and grant agreements, where
noncompliance could have a direct and material effect on the amounts in the Financial Statements.
In FY21-22 & 22-23, the District implemented GASB 87 Leases & GASB 96 Subscription-Based
Information Technology Arrangements, which the Auditors identified as an area of focus (Emphasis
of Matter). For the element of surprise in the Audit this year, the Auditor reviewed the District
Capital Investment procurement and transactions.
There are no audit findings, no current year correcting transactions nor internal control deficiencies
to report.
The District’s FY23-24 ending Fund Balance (pages 13-15) of $28,255,000, which is a decrease by
<$477,000> compared FY22-23, that decreased by <$3,297,000> compared to in FY21-22.
FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
$

28,732,000
28,255,000

32,029,000
28,732,000

(3,297,000)
(477,000)

(477,000)

$ (3,297,000)

$ 2,820,000

The main reasons for the decrease in Fund Balance are:
•

Net Capital Asset Investment Expenditures – $1,240,000 (PY $3,215,000)

Gross Capital Investments were $3,060,000 (PY $3,871,000) mainly due to the Diamond Street Bike
path, and allcove Youth Wellness Center, offset by Capital Grants $1,145,000 and $675,00,
respectively. As 55% of the Bike Path constructed, $1,097,000, net after $38,000 in depreciation, is
in the City of Redondo Beach, the District will effectuate a transfer of the infrastructure by the end of
the calendar year 2024.

9

With the transfer of the infrastructure to the City of Redondo Beach and the Los Angeles County
Metropolitan Transportation Authority (Metro) Management Audit completion November 2 with no
material audit findings reported, the District Diamond Street Bike Path project will be considered
closed.
The District governmental fund financial statements focus on near-term inflows and outflows of
spendable resources as well as on balances of spendable resources available for use at the end of
the fiscal year.
The District Fund Balances are in summary as follows:
•
•
•
•
•
•

Investment In Limited Partnership
Unassigned – Operating Reserve
Committed – For Capital Investments
Restricted – Pension Funds
Nonspendable Shor-Term Assets
Restricted – POC (Medical Building Investment)
o

Total

2024
$10,068,776
6,972,824
6,013,709
3,092,304
951,609
1,156,703

2023
$10,247,541
6,930,696
5,800,531
3,035,156
1,562,151
1,156,703

$28,255,925

$28,732,778

Governmental agencies also report financial statements for a so-called Net Position, like how forprofit organization report Equity, presenting information on all the District’s assets and liabilities, using
the economic resources measurement focus and full accrual basis of accounting in accordance with
generally accepted accounting principles (GAAP), with the difference between assets and liabilities
reported as Net Position.
Over time, increases or decreases in Net Position (i.e., Equity) serves as a useful indicator of whether
the financial position of the District is improving or declining keeping in mind that the accounting rules
(GAAP) requires consolidated joint venture investment, land, and fixed assets to be measured on a
historical cost basis.
The District for the year-ended June 30, 2024, and 2023 are as follows:
NET POSITION

2024

2023

$ 55,086,000

$ 55,811,000

Variance
$

(725,000)

CONVERSION TO NET POSITION (LONG TERM ECONOMIC RESOURCES)
FUND BALANCE CHANGE

(477,000)

NET INCREASE IN CAPITAL INVESTMENTS

226,000

NET INCREASE IN PENSION & OPEB LAIBILITIES

(521,349)

NET OTHER GAAP CHANGES: ACCRUED PTO, UNEARNED, ETC.
NET POSITION CHANGE

47,349
(725,000)

In summary, the District Fund balance and Net Position have decreased due to ongoing payments
and investment in long-term capital assets and increases in net Pension Liability.
On an Operating cash basis, the District had a Net Surplus of $458,000. The annual CEO Summary
Report table below illustrates the annual Operating Revenue and Expense activities for the Fiscal
Year 23-24 compared to Annual FY23-24 Budget.
Action Item:
Recommend Approval to the Board of Directors of the FY23-24 BCHD Independent Audit Report
and accompanying Financial Statements

10

Beach Cities Health District
CEO Summary Report
FY23-24 Audited Final

YTD FY 23-24

% of Total

Actual

Actual

Annual FY23-24
Budget

% of Total

Favorable/(unfavorable) to
budget

Budget

Amount

%

District Health Programming
Revenues
DFC Grant, Opiod Funds, Other

142,378

0.9%

144,200

1.0%

(1,822)

-1%

allcove revenue

729,300

4.8%

730,600

4.9%

(1,301)

0%

Community Services

47,810

0.3%

47,315

0.3%

495

1%

919,488

6.0%

922,115

6.2%

(2,627)

0%

Life Span Revenue - Total
Expenses
DFC, Opiod Funds, Other- Expenditures

130,842

0.9%

125,000

0.8%

(5,842)

-5%

allcove expenditures

1,257,089

8.5%

1,171,062

7.9%

(86,028)

-7%

Community Services

1,283,927

8.7%

1,415,455

9.5%

131,528

9%

Health Grants, Well Being, Youth

2,099,867

14.2%

2,271,045

15.2%

171,178

8%

Direct Life Span Expenses

4,771,725

32.2%

4,982,562

33.4%

210,836

4%

Com, IT, Volunteer, Partnerships

2,102,671

14.2%

2,225,301

14.9%

122,630

6%

Support Services

2,368,273

16.0%

2,212,307

14.8%

(155,967)

-7%

Net Program Costs

(8,323,181)

174,873

2%

Revenues - CHF

1,197,491

7.8%

1,008,894

6.8%

188,597

19%

Revenues - APLEX

858,878

5.6%

780,575

5.2%

78,304

10%

2,056,369

13.5%

1,789,468

12.0%

266,901

15%

Other Programs & Services

Health & Fitness Operations Revenues

(8,498,054)

Expenses - CHF

1,337,779

9.0%

1,271,973

8.5%

(65,806)

-5%

Expenses - APLEX

904,047

6.1%

831,994

5.6%

(72,054)

-9%

Health & Fitness Operations Expenses

2,241,826

15.1%

2,103,967

14.1%

(137,859)

-7%

Expenses - Fitness Administration

189,998

1.3%

160,201

1.1%

(29,797)

-19%

Net Health & Fitness Operations

(375,455)

(474,700)

99,244

21%

Total Net District Programming

(8,698,637)

(8,972,754)

(274,117)

3%

Other Revenue Sources
Property Tax
Interest
Limited Partnership
Federal and State Agencies
Donations and Other

5,024,156

32.9%

5,002,800

33.6%

21,356

0%

227,410

1.5%

344,930

2.3%

(117,520)

-34%

1,745,655

11.4%

1,735,000

11.6%

10,655

1%

0

0.0%

80,000

0.5%

(80,000)

-100%

20,723

0.1%

9,000

0.1%

11,723

130%

7,017,944

46%

7,171,730

48%

(153,786)

-2%

Campus Revenues

4,539,038

29.7%

4,295,751

28.8%

243,287

6%

Campus Expenses

2,889,633

19.5%

3,013,437

20.2%

123,805

4%

1,649,405

10%

1,282,313

9%

(367,092)

29%

Total Other Fund Income
Real Property Operations

Net Income - Campus
Off-Campus Revenues

728,520

4.8%

728,512

4.9%

8

0%

Off-Campus Expenses

239,027

1.6%

209,802

1.4%

(29,226)

-14%

489,492

3%

518,710

3%

(29,218)

-6%

2,138,897

13%

1,801,023

12%

337,874

19%

Net Income - Off-Campus Properties
Property Net Funds
TOTAL REVENUES

15,261,359

100.0%

14,907,577

100.0%

353,783

2%

TOTAL EXPENSES

14,803,154

100.0%

14,907,577

100.0%

104,423

1%

458,205

3%

OPERATING INCOME

458,205

(0)

11

BEACH CITIES HEALTH DISTRICT
Annual Comprehensive Financial Report

ft

ra

D

Year ended June 30, 2024

514 N. Prospect Avenue
Redondo Beach, California 90277
Prepared by:
Finance Department

12

Introductory Section

13

BEACH CITIES HEALTH DISTRICT
Comprehensive Annual Financial Report
Year ended June 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents ......................................................................................... i
Letter of Transmittal..................................................................................... iii
List of Board/Officers .................................................................................... xiv
Organization Chart ...................................................................................... xv
Health Priorities 2023-2025..........................................................................xvi
Beach Cities Health District Programs and Services .......................................... xvii
Resolution No. 595–Adopting the Final Operating and Capital Budget
for the Fiscal Year 2024-2025........................................................................ xix

NOT INCLUDED
FINANCIAL SECTION
Independent Auditor’s Report .................................................................... 1
Management’s Discussion and Analysis ....................................................... 4
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position........................................................... 20
Statement of Activities............................................................... 21
Fund Financial Statements:
Governmental Funds:
Balance Sheet – Governmental Funds .......................................... 22
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position .............................................. 23
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds .............................. 24
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities ................................................ 25
Notes to the Basic Financial Statements ............................................. 26
REQUIRED SUPPLEMENTAL INFORMATION
Schedule of the Plan's Proportionate Share of the Net Pension Liability
and Related Ratios as of the Measurement Date ......................................61
Schedule of Pension Plan Contributions....................................................... 62
Schedule of the Plan's Proportionate Share of the OPEB Liability and
Related Ratios as of the Measurement Date ............................................ 63
Schedule of OPEB Plan Contributions ......................................................... 64
Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund ......................................................... 65
Notes to Required Supplemental Information .............................................. 66
STATISTICAL SECTION
Government-wide Statement of Activities ................................................... 69
Government-wide Change in Net Position ................................................... 70
Governmental Fund Revenues, Expenditures and Change in Fund Balance....... 71
Governmental Fund Change in Fund Balances… ............................................ 72
Government-wide Revenues by Function ..................................................... 73
Governmental-wide Expenses by Function ................................................... 74
Assessed Value and Estimated Actual Value of Taxable Property .................... 75
Direct and Overlapping Property Tax Rates .................................................. 76
Demographic Statistics ............................................................................. 77

14

BEACH CITIES HEALTH DISTRICT
Comprehensive Annual Financial Report
Year ended June 30, 2024
Principal Employers .................................................................................. 78
Personnel Summary by Department ........................................................... 79

15

Letter of Transmittal
INSERT TRANSMITTAL LETTER

1200 Del Amo Street
Redondo Beach, CA 90277
(310) 374-3426, Fax (310) 376-4738

16

Financial Section

17

INDEPENDENT AUDITOR’S REPORT

Board of Directors
Beach Cities Health District
Redondo Beach, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities and each major fund
of Beach Cities Health District (the “District”), as of and for the year June 30, 2024, and the
related notes to the financial statements, which collectively comprise the District’s basic
financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects,
the respective financial position of the governmental activities and each major fund of the
District, as of June 30, 2024, and the respective changes in financial position for the year
then ended in accordance with accounting principles generally accepted in the United States
of America.
Basis for Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of
the governmental activities and each major fund of the District as of June 30, 2024, and the
respective changes in financial position for the year then ended in accordance with accounting
principles generally accepted in the United States of America. Our responsibility is to express
opinions on these financial statements based on our audit. We did not audit the financial
statements of Sunrise Beach Cities Assisted Living, L.P., which represents 13.6%, 18.2%, and
10.0%, respectively, of the assets, net position and revenues of the District. Those
statements were audited by other auditors whose report has been furnished to us, and our
opinion, insofar as it relates to the amounts included for Sunrise Beach Cities Assisted Living,
L.P., is based solely on the report of the other auditors. We conducted our audit in accordance
with auditing standards generally accepted in the United States of America (GAAS) and the
standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the District and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our
audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.

18

Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United
States of America, and for the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the
District’s ability to continue as a going concern for twelve months beyond the financial
statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements
are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:








Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the District’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the District’s ability to continue as a
going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain
internal control–related matters that we identified during the audit.

19

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, Budgetary Comparison Information, Schedule of
Pension Plan Contributions, Schedule of the Plan’s Proportionate Share of the Net Pension
Liability, Schedule of Changes in OPEB Liability and Related Ratios, and the Schedule of OPEB
Contributions be presented to supplement the basic financial statements. Such information is
the responsibility of management and, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Report on Summarized Comparative Information
We have previously audited the District’s 2023 financial statements, and we expressed an
unmodified audit opinion on those audited financial statements in our report dated December
19, 2024. In our opinion, the summarized comparative information presented herein as of
and for the year ended June 30, 2023 is consistent, in all material respects, with the audited
financial statements from which it has been derived.
Other Information
Management is responsible for the other information included in the Annual Comprehensive
Financial Report. The other information comprises the introductory section and statistical
section but does not include the financial statements and our auditor's report thereon. Our
opinions on the financial statements do not cover the other information, and we do not
express an opinion or any form of assurance thereon. In connection with our audit of the
financial statements, our responsibility is to read the other information and consider whether
a material inconsistency exists between the other information and the financial statements,
or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 19, 2024 on our consideration of the District’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District’s
internal control over financial reporting and compliance.

20

Irvine, California
December 19, 2024

21

INSERT MD&A

22

BEACH CITIES HEALTH DISTRICT
Statement of Net Position
As of June 30, 2024
(with comparative data for prior year)

Governmental
Activities
2024
2023
ASSETS
Cash and investments (note 2)
Restricted cash and investments - pension (note 2)
Accounts receivable - net
Interest receivable
Taxes receivable
Prepaid items
Lease receivable (note 3)
Notes receivable - net (note 4)
Investment in limited partnerships (note 6)
Net OPEB asset (note 11)
Capital assets not being depreciated (note 5)
Capital assets - net of accumulated depreciation (note 5)

$

TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pension related (note 9)
OPEB related (note 11)
TOTAL DEFERRED OUTFLOWS OF RESOURCES
LIABILITIES
Accounts payable
Accrued liabilities
Accrued payroll
Subscription-based IT payable (note 8)
Deposits
Unearned service fees
Noncurrent liabilities:
Due within one year:
Leases payable (note 7)
Compensated absences payable (note 7)
Due in more than one year:
Leases payable (note 7)
Compensated absences payable (note 7)
Net pension liability (note 9)
Net OPEB liability (note 11)
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Lease related (note 3)
Pension related (note 9)
OPEB related (note 11)
TOTAL DEFERRED INFLOWS OF RESOURCES
NET POSITION
Net investment in capital assets
Restricted for medical building purposes
Unrestricted
TOTAL NET POSITION

$

See accompanying notes to basic financial statements.

14,331,878
3,092,304
603,197
28,709
116,798
260,065
13,188,736
691,544
10,068,776
58,865
17,760,214
13,375,220

13,614,885
3,035,156
1,247,889
38,618
134,104
134,943
14,813,058
1,427,208
10,247,541
17,108,392
14,536,133

73,576,306

76,337,927

2,088,411
55,506

2,122,558
85,970

2,143,917

2,208,528

365,683
202,090
191,676
23,621
177,137
562,449

549,271
172,832
168,826
70,235
177,137
467,321

415,634
288,837

793,792
278,088

279,797
299,312
4,661,165
-

636,337
259,692
4,125,037
71,327

7,467,401

7,769,895

12,204,468
544,118
418,730

14,053,555
579,575
332,471

13,167,316

14,965,601

30,440,003
1,156,703
23,488,800

30,214,396
1,156,703
24,439,860

55,085,506

55,810,959

23

BEACH CITIES HEALTH DISTRICT
Statement of Activities
Year ended June 30, 2024
(with comparative data for prior year)

Functions
Primary government:
Preventive health services
Capital contribution to local government
Interest on long-term debt
Total

Expenses

Charges for
Services

Governmental Activities
Net (Expense) Revenue and
Change in Net Position
2024
2023

Program Revenues
Operating Grants Capital Grants
& Contributions
& Contributions

$

16,989,318
1,097,143
76,199

6,533,262
-

2,671,737
-

-

(7,784,319)
(1,097,143)
(76,199)

(8,735,102)
(128,310)

$

18,162,660

6,533,262

2,671,737

-

(8,957,661)

(8,863,412)

5,024,156
1,745,655
1,373,655
88,742

4,751,854
1,618,389
795,602
368,400

8,232,208

7,534,245

(725,453)

(1,329,167)

55,810,959

57,140,126

55,085,506

55,810,959

General revenues:
Property taxes
Income from limited partnerships
Earnings (losses) on investments
Other income
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year

$

See accompanying notes to basic financial statements.

24

BEACH CITIES HEALTH DISTRICT
Governmental Funds
Balance Sheet
As of June 30, 2024
(with comparative data for prior year)

ASSETS
Cash and investments (note 2)
Restricted cash and investments - pension
Account receivable - net
Interest receivable
Leases receivable (note 3)
Notes receivable - net investment (note 4)
Taxes receivable
Pass through grants receivable
Prepaid items
Investment in limited partnerships (note 6)

$

TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued expenses
Accrued payroll
Deposits
Unearned service fees
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
Lease Related (note 3)
TOTAL DEFERRED INFLOWS OF RESOURCES
FUND BALANCES
Nonspendable:
Prepaid items
Note receivable
Investment in limited partnerships
Committed:
Capital investment
Restricted:
Pension trust
Medical building
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES

$

General
Fund

Prospect
One
Fund

2024

13,175,175
3,092,304
603,197
28,709
13,188,736
691,544
116,798
260,065
10,068,776

1,156,703
-

14,331,878
3,092,304
603,197
28,709
13,188,736
691,544
116,798
260,065
10,068,776

13,614,885
3,035,156
1,217,748
38,618
14,813,058
1,427,208
134,104
30,141
134,943
10,247,541

41,225,304

1,156,703

42,382,007

44,693,402

Totals
2023

365,683
202,090
191,676
177,137
562,449

-

365,683
202,090
191,676
177,137
562,449

549,271
172,832
168,826
177,137
467,321

1,499,035

-

1,499,035

1,535,387

422,579
12,204,468

-

422,579
12,204,468

371,682
14,053,555

12,627,047

-

12,627,047

14,425,237

260,065
691,544
10,068,776

-

260,065
691,544
10,068,776

134,943
1,427,208
10,247,541

6,013,709

-

6,013,709

5,800,531

3,092,304
6,972,824

1,156,703
-

3,092,304
1,156,703
6,972,824

3,035,156
1,156,703
6,930,696

27,099,222

1,156,703

28,255,925

28,732,778

41,225,304

1,156,703

42,382,007

44,693,402

See accompanying notes to basic financial statements.

25

BEACH CITIES HEALTH DISTRICT
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
As of June 30, 2024

FUND BALANCES OF GOVERNMENTAL FUNDS

$ 28,255,925

Amounts reported for governmental activities in the Statement of Net Position are
different because:
Other long-term assets are not available to pay for current period expenditures
and, therefore, are reported as unavailable revenue in the fund.

422,579

Long-term debt and compensated absences that have not been included in the
governmental fund statements. The payables, however, are a liability in the
Statement of Net Position:
Leases payable
Subscription-based IT payable
Compensated absences

(695,431)
(23,621)
(588,149)

Net pension and OPEB Asset and related deferred inflows of resources are not
due and payable in the current period. Deferred outflow of resources is not
considered a current asset or financial resource. As a result, these items are
not reported in the governmental funds (notes 9 and 11).
Deferred outflows - pension related
Deferred inflows - pension related
Net pension liability
Deferred outflows - OPEB
Deferred Inflows - OPEB
Net OPEB Asset
Capital assets, net of accumulated depreciation, have not been included
as financial resources in governmental funds.

NET POSITION OF GOVERNMENTAL ACTIVITIES

2,088,411
(544,118)
(4,661,165)
55,506
(418,730)
58,865

31,135,434

$ 55,085,506

See accompanying notes to basic financial statements.

26

BEACH CITIES HEALTH DISTRICT
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended June 30, 2024
(with comparative data for prior year)

General
Fund
REVENUES
Financing and rental income related to leases
Property taxes
Program income
Income from limited partnership
Investment earnings (loss)
Other revenues
Intergovernmental

Totals
2024

2023

4,425,992
5,024,156
2,056,373
1,745,655
1,373,655
88,742
2,671,737

-

4,425,992
5,024,156
2,056,373
1,745,655
1,373,655
88,742
2,671,737

4,223,972
4,751,854
1,584,269
1,618,389
795,602
368,400
1,980,050

17,386,310

-

17,386,310

15,322,536

7,450,990
1,257,859
2,120,218
1,743,748
326,138
562,116
187,537
229,134
6,119
61,788
3,060,005

-

7,450,990
1,257,859
2,120,218
1,743,748
326,138
562,116
187,537
229,134
6,119
61,788
3,060,005

6,832,167
1,440,055
2,190,355
1,867,551
546,031
500,422
198,092
209,562
8,067
69,090
3,909,241

781,312
76,199

-

781,312
76,199

720,257
128,310

17,863,163

-

17,863,163

18,619,200

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES

(476,853)

-

(476,853)

(3,296,664)

NET CHANGES IN FUND BALANCES

(476,853)

-

(476,853)

(3,296,664)

TOTAL REVENUES
EXPENDITURES
Current:
Salaries and related expenses
Health programs
Professional fees
Facilities management
Community relations
General and administrative
Human resources
Information services
Cost of goods sold
Other
Capital outlay
Debt service:
Principal retirement
Interest and other fiscal charges
TOTAL EXPENDITURES

FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR

$

Prospect
One
Fund

27,576,075

1,156,703

28,732,778

32,029,442

$ 27,099,222

1,156,703

28,255,925

28,732,778

See accompanying notes to basic financial statements.

27

BEACH CITIES HEALTH DISTRICT
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities
Year ended June 30, 2024

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS

$

(476,853)

Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the cost of these assets is allocated over their
estimated useful lives as depreciation expense. This is the amount by which
capital outlay exceeded depreciation in the current period.
Expenditures for capital assets
Depreciation expense

1,924,495
(2,433,586)

Repayment of long-term liabilities is an expenditure in the governmental funds,
but the repayment reduces long-term liabilities in the Statement of Net Position.

781,312

To record the net change in compensated absences in the
Statement of Activities.

(50,369)

Revenues that are measurable but not available are recorded as unavailable
revenue under the modified accrual basis of accounting.

50,897

The net pension liability included in the Statement of Activities does not provide
(require) the use of current financial resources and, therefore, are not reported
as expenditures in governmental funds.

(534,818)

Other postemployment benefits (OPEB) included in the Statement of Activities
do not provide (require) the use of current financial resources and, therefore,
are not reported as expenditures in governmental funds.

13,469

CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES

$

(725,453)

See accompanying notes to basic financial statements.

28

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
Year ended June 30, 2024

(1)

Summary of Significant Accounting Policies
The financial statements of the Beach Cities Health District (District) have been prepared in
conformity with accounting principles generally accepted in the United States of America (U.S.
GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles. The more significant of the District’s accounting policies are
described below.
(a)

Reporting Entity
The accompanying financial statements include the District and Prospect One Corporation
(Prospect One). The District is a government agency that was created in 1955 whose
purpose is promoting health care in the Cities of Redondo Beach, Manhattan Beach and
Hermosa Beach, California. On January 7, 1993, the District changed its name from the
South Bay Hospital District to the Beach Cities Health District. Prior to June 1984, the
District operated an acute care hospital. The governing body is an elected board of five
trustees. Prospect One was established to construct and operate a medical office building
for the benefit of the District. The criteria used in determining the scope of the reporting
entity is based on the provisions of GASB Statement No. 14, as amended by GASB
Statements No. 39 and No. 61. The District is the primary government unit. Component
units are those entities which are financially accountable to the primary government,
either because the District appoints a voting majority of the component unit’s board or
because the component unit will provide a financial benefit or impose a financial burden
on the District. The District has accounted for Prospect One as a blended component
unit. Despite being legally separate, this entity is intertwined with the District and in
substance, part of the District’s operations.

(b)

Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the nonfiduciary activities of the
primary government and its component units. Generally, the effect of interfund activity
has been removed from these statements.
The Statement of Activities demonstrates the degree to which the direct expenses of a
given function or segment are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues include:
(1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and (2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Major individual governmental funds are reported as separate columns in the fund
financial statements.

29

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
(c)

Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when the liability is incurred, regardless of the timing
of related cash flows. Property taxes are recognized as revenues in the fiscal year for which
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period. For this
purpose, the District considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded when
the liability is incurred, as under accrual accounting. However, debt service expenditures
are recorded only when payment is due.
Certain taxes, interest, subventions, and grants associated with the current fiscal period
are all considered to be susceptible to accrual and have been recognized as revenues of
the current fiscal period. All other revenue items are considered to be measurable and
available only when cash is received within the availability period.

(d)

Fund Classifications
Major funds are defined as funds that have assets, liabilities, revenues or expenditures
equal to at least ten percent of their fund-type total and at least five percent of the
grand total of all fund types. The General Fund is always a major fund. The District
may also select other funds it believes should be presented as major funds. The District
reports the following major governmental funds:


General Fund – The General Fund is the general operating fund of the District
and is used to account for all financial resources except those required to be
accounted for in another fund.



Prospect One Fund – The Prospect One Fund accounts for all activities of the
Prospect One Corporation.

30

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
(e)

Cash and Investments
The District operates its investment portfolio under the Prudent Investor Standard
(California Government Code §53600.3) which states, in essence, that when investing,
reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a
trustee shall act with care, skill, prudence and diligence under the circumstances then
prevailing, including, but not limited to, the general economic conditions and the
anticipated needs of the District, that a prudent person in a like capacity and familiarity
with those matters would use in the conduct of funds of a like character and with like
aims, to safeguard the principal and maintain the liquidity needs of the District.
The District’s investments are carried at fair value. The fair value of equity and debt
securities is determined based on sales prices or bid-and-asked quotations from
Securities and Exchange Commission (SEC)-registered securities exchanges or National
Association of Securities Dealers Automated Quotations System (NASDAQ) dealers. The
Local Agency Investment Fund (LAIF) determines the fair value of its portfolio quarterly
and reports a factor to the District; the District applies that factor to convert its share
of LAIF from amortized cost to fair value. Changes in fair value are allocated to each
participating fund.

(f)

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;
and
Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.

31

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
Level 3 – Inputs to the valuation methodology are unobservable and significant to the
fair value measurement. These unobservable inputs reflect an entity’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 an entity’s own data.
(g)

Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year is referred to as interfund receivables/interfund
payables (i.e., the current portion of interfund loans) or advances to/from other funds
(the noncurrent portion of interfund loans). All other outstanding balances between
funds are reported as interfund receivables or interfund payables.
Advances between funds, as reported in the fund financial statements, are offset by a
fund reserve account in applicable governmental funds to indicate that they are not
available for appropriation and are not expendable available financial resources.
All trade and tax receivables are shown net of an allowance for uncollectible accounts,
if applicable, and estimated refunds due.
Property taxes in the State of California are administered for all local agencies at the
County level, and consist of secured, unsecured, and utility tax rolls. The following is a
summary of major policies and practices relating to property taxes:


Property Valuations – Property valuations are established by the County of Los
Angeles (County) Assessor for the secured and unsecured property tax rolls; the
utility property tax rolls are valued by the State Board of Equalization. Under the
provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the
voters on June 6, 1978) properties are assessed at 100% of full value. From this
base of assessment, subsequent annual increases in valuation are limited to a
maximum of 2%. However, increases to full value are allowed for property
improvements or upon change in ownership. Personal property is excluded from
these limitations and is subject to annual reappraisal.



Tax Levies – Tax levies are limited to 1% of full value which results in a tax rate
of $1.00 per $100 assessed valuation, under the provisions of Proposition 13.
Tax rates for voter-approved indebtedness are excluded from this limitation.



Tax Levy Dates – Tax levy dates are attached annually on January 1 preceding the
fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends
June 30 of the following year. Taxes are levied on both real and unsecured
personal property as it exists at that time. Liens against real estate, as well as the
tax on personal property, are not relieved by subsequent renewal or change in
ownership.

32

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)

(h)



Tax Collections – Collection of taxes is the responsibility of the County Tax
Collector. Taxes and assessments on secured and utility rolls which constitute a
lien against the property, may be paid in two installments: the first is due on
November 1 of the fiscal year and is delinquent if not paid by December 10; and
the second is due on March 1 of the fiscal year and is delinquent if not paid by April
10. Unsecured personal property taxes do not constitute a lien against real
property unless the taxes become delinquent. Payment must be made in one
installment, which is delinquent if not paid by August 31 of the fiscal year.
Significant penalties are imposed by the County for late payments.



Tax Levy Apportionments – Due to the nature of the District-wide maximum levy,
it is not possible to identify general purpose tax rates for specific entities. Under
state legislation adopted subsequent to the passage of Proposition 13,
apportionments to local agencies are made by the County Auditor-Controller
based primarily on the ratio that each agency represented of the total Districtwide levy for the three years prior to fiscal year 1979.



Property Tax Administration Fees – The State of California Fiscal Year 1990-91
Budget Act authorized counties to collect an administrative fee for collection and
distribution of property taxes. Property taxes are recorded as net of
administrative fees withheld during the fiscal year.

Prepaid Items
Payments to vendors that reflect costs applicable to future accounting periods are
recorded as prepaid items in both government-wide and fund financial statements. The
cost of prepaid items is recorded as expenditures/expenses when consumed rather than
when purchased.

(i)

Capital Assets
Capital assets, which include land, buildings and improvements, furniture and fixtures,
and machinery and equipment are reported in the applicable governmental activities
columns in the government-wide financial statements. Capital assets are defined by the
District as assets with an estimated useful life in excess of one year. The capitalization
policy of the District is to capitalize all capital assets with a cost of $5,000 or more. Such
capital assets are recorded at historical cost if purchased or constructed. Donated capital
assets are recorded at estimated acquisition value at the date of donation. The cost of
normal maintenance and repairs that do not add to the value of the capital asset or
materially extend capital asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are
constructed.
Capital assets of the District are depreciated using the straight-line method over the
following estimated useful lives:

33

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
Assets
Buildings and improvements
Machinery and equipment
Furniture and fixtures
Subscription assets

Years
10 – 32
2–9
2–9
2–4

Periodic restoration and maintenance costs on particular items are charged to expense
as incurred.
(j)

Leases
The District is a lessee for leases of parking and office space. The District recognizes a
lease liability and an intangible right-to-use lease asset (lease asset) in the basic
financial statements. The District recognizes lease liabilities with an initial, individual
value of $5,000.
At the commencement of a lease, the District initially measures the lease liability at the
present value of payments expected to be made during the lease term. Subsequently,
the lease liability is reduced by the principal portion of lease payments made. The lease
asset is initially measured as the initial amount of the lease liability, adjusted for lease
payments made at or before the lease commencement date, plus certain initial direct
costs. Subsequently, the lease asset is amortized on a straight-line basis over the
shorter of the lease term or the useful life of the underlying asset, unless the lease
contains a purchase option that the District has determined is reasonably certain of being
exercised. In those situations, the lease is amortized over the useful life of the
underlying asset.
Key estimates and judgements related to leases include how the District determines (1)
the discount rate it uses to discount the expected lease payments to present value, (2)
lease term, and (3) lease payments.
• The District uses the interest rate charged by the lessor as the discount rate. When
the interest rate charged by the lessor is not provided, the District generally uses its
estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments
included in the measurement of the lease liability are composed of fixed payments and
purchase option price that the District is reasonably certain to exercise. The District
monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with
long-term liabilities on the Statement of Net Position.

34

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
(k)

Compensated Absences
It is the District’s policy to permit employees to accumulate earned but unused vacation
leave (compensated absences). The District estimates the amount of compensated
absences to be used within one year by averaging compensated absences used over the
past five years. As of June 30, 2024, the balance of vacation leave is $588,149.

(l)

Subscription-Based Information Technology (IT) Arrangements
The District is a participant in subscription-based IT arrangements as detailed in
Footnote 8. The District recognizes a subscription-based IT payable and right to use IT
assets in the financial statements.
At the commencement of the arrangement, the District initially measures the payable at
the present value of payments expected to be paid during the arrangement term.
Subsequently, the payable is reduced by the principal portion of payments made. The
right to use assets are initially measured at the initial amount of the subscription-based
IT payable. Subsequently, the right to use assets are amortized over the life of the
arrangement term.

(m) Long-Term Obligations
In the government-wide financial statements, long-term debt, and other long-term
obligations are reported as liabilities.
(n)

Deferred Outflows/Inflows of Resources
When applicable, the Statement of Net Assets and Balance Sheet will report a separate
section for deferred outflows of resources. Deferred outflows of resources represent
outflows of resources (consumption of net position) that apply to future periods and
that, therefore, are not recognized as an expense or expenditure until that time. The
Statement of Net Assets has two items that qualify for reporting in this category:
Pension Related and Other Postemployment Benefits (OPEB) Related Deferred Outflows.
When applicable, the Statement of Net Position and the Balance Sheet will report a
separate section for deferred inflows of resources. Deferred inflows of resources
represent inflows of resources (acquisition of net assets) that apply to future periods
and that, therefore, are not recognized as an inflow of resources (revenue) until that
time. The District has four items that qualify for reporting in this category. One of these
items arises only under a modified accrual basis of accounting. Accordingly, the item,
unavailable revenue, is reported only on the Balance Sheet for the governmental funds.
The governmental funds report unavailable revenue related to items received outside of
the District’s availability period of 60 days. These amounts are deferred and recognized
as an inflow of resources in the period that the amounts become available. The
Statement of Net Assets has three items that qualify for reporting in this category:
Pension Related, OPEB Related, and Lease Related Deferred Inflows.

35

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
(o)

Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of
resources related to pensions, and pension expense, information about the fiduciary net
position and additions to/deductions from the fiduciary net position have been
determined on the same basis as they are reported by the California Public Employees
Retirement System (CalPERS) Financial Office. 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.
CalPERS audited financial statements are publicly available reports that can be obtained
at CalPERS’ website under Forms and Publications.
GASB 68 requires that the reported results must pertain to liability and asset information
within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD)
Measurement Date (MD)
Measurement Period (MP)

(p)

June 30, 2022
June 30, 2023
July 1, 2022 to June 30, 2023

Other Postemployment Benefits (OPEB)
For purposes of measuring the OPEB Liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense. For this purpose,
benefit payments are recognized when currently due and payable in accordance with the
benefit terms. Investments are reported at fair value.
U.S. GAAP requires that the reported results must pertain to liability information within
certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD)
Measurement Date (MD)
Measurement Period (MP)

(q)

June 30, 2023
June 30, 2023
July 1, 2022 to June 30, 2023

Fund Balances
Fund balances are reported in the fund statements in the following classifications:


Nonspendable – this includes amounts that cannot be spent because they are
either not spendable in form (such as inventory) or legally or contractually
required to be maintained intact (such as endowments).

36

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)


Restricted – this includes amounts that can be spent only for specific purposes
stipulated by legal requirements imposed by other governments, external
resource providers, or creditors. Board of Directors imposed restrictions do not
create restricted fund balance unless the legal document that initially authorized
the revenue (associated with that portion of fund balance) also included language
that specified the limited use for which the authorized revenues were to be
expended.



Committed – this includes amounts that can be used only for the specific
purposes determined by a formal action of the Board. It includes legislation
(Board action) that can only be overturned by new legislation requiring the same
type of voting consensus that created the original action. Therefore, if the Board
action limiting the use of the funds is separate from the action (legislation) that
created (enabled) the funding source, then it is committed, not restricted. For
the District, a resolution is the highest level of decision-making authority that is
used to establish a commitment of fund balance.



Assigned – this includes amounts that are designated or expressed by the Board
of Directors but does not require a formal action such as a resolution or
ordinance. The Board may delegate the ability of an employee or committee to
assign uses of specific funds, for specific purposes.



Unassigned – this includes the remaining spendable amounts which are not
included in one of the other classifications.

It is the District’s policy that restricted resources will be applied first, followed by (in
order of application) committed, assigned and unassigned resources, in the absence of
a formal policy adopted by the Board of Directors.
(r)

Net Position
In the government-wide financial statements, net position represents the difference
between assets and liabilities and deferred inflows and outflows and is classified into
three categories:


Net Investment in capital assets – consists of capital assets, including restricted
capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.



Restricted for medical building purposes – represents the net position that is
restricted for medical building purposes and is not accessible for general use
because their use is subject to restrictions enforceable by third parties.



Unrestricted net position – represents those assets that are available for general
use.

37

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(1)

Summary of Significant Accounting Policies (Continued)
When both restricted and unrestricted resources are available for use, it is the District’s
policy to use restricted resources first.
(s)

Estimates
The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses/expenditures
during the reporting period. Actual results could differ from those estimates.

(t)

Prior Year Data
Selected information from the prior year has been included in the accompanying financial
statements in order to provide an understanding of changes in the District’s financial
position and operations. This information has been included for comparison purposes
only and does not represent a complete presentation in accordance with generally
accepted accounting principles. Accordingly, such information should be read in
conjunction with the District’s financial statements for the year ended June 30, 2023
from which this selected financial data was derived. Certain minor reclassifications of
prior year data have been made in order to enhance its comparability with current year
figures.

(2)

Cash and Investments
Cash and investments as of June 30, 2024 are classified in the accompanying financial
statements as follows:

Statement of Net Position:
Cash and investments
Restricted cash and investments - pension
Total cash and investments

$ 14,331,878
3,092,304
$ 17,424,182

Cash and investments as of June 30, 2024 consist of the following:

Petty cash
Deposits with financial institutions
Investments
Total cash and investments

$

1,400
936,611
16,486,171

$ 17,424,182

38

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(2)

Cash and Investments (Continued)
Investments Authorized by the California Government Code and the District’s Investment
Policy
The table below identifies the investment types that are authorized for the District by the
California Government Code (or the District’s investment policy, where more restrictive). The
table also identifies certain provisions of the California Government Code (or the District’s
investment policy, where more restrictive) that address interest rate risk, credit risk and
concentration of credit risk. This table does not address investments of debt proceeds held by
bond trustee that are governed by the provisions of debt agreements of the District, rather than
the general provisions of the California Government Code or the District’s investment policy.

Authorized Investment Type
Government Investment Pools
U.S. Treasury obligations
U.S. Agency securities
Insured passbook on demand deposits with
banks and savings and loans
Negotiable certificates of deposit
Time certificates of deposit
Bankers acceptances
Commercial paper
Mutual funds (must be comprised of eligible
securities permitted under this policy)
Money market funds (must be comprised of
eligible securities permitted under this
policy)
Registered state warrants or treasury notes
of the State of California
Indebtedness of any local agency within the
State of California
Repurchase agreements
Medium term notes
Obligations of the International Bank for
Reconstruction and Development, the
International Finance Corporation, and the
Inter-American Development Bank

Maximum
Maturity
n/a
5 years
5 years

Maximum
Percentage
of Portfolio
None
None
None

Maximum
Investment
in One Issuer
None
None
None

n/a
1 year
2 years
180 Days
180 Days

20%
30%
50%
20%
25%

$100,000
$100,000
$100,000
None
None

n/a

20%

None

n/a

20%

None

5 years

25%

None

5 years
90 Days
5 years

25%
20%
30%

None
None
None

5 years

30%

None

The investment policy allows for the above investments to have equal safety and liquidity as
all other allowed investments. Maturity depends on the cash needs of the District.

39

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(2)

Cash and Investments (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment the greater the
sensitivity of its fair value to changes in market interest rates. One of the ways that the District
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 District’s investments to market interest rate fluctuations is provided by the
following table that shows the distribution of the District’s investments by maturity:
Remaining Maturity (in Months)
Investment Type
U.S Treasury bonds
Medium term notes
Certificates of deposit
Supra-national agency bonds/notes
Asset-backed security/collateralized
mortgage obligation
CAMP
Federal agency bond/notes
LAIF
Municipal bonds/notes
Federal agency collateralized
mortgage obligation
Held by Trust:
PARS pooled trust - pension
Totals

12 Months
or Less
1,024,442
1,795,178

13 to 36
Months
3,895,331
900,568

336,165
2,873,806
482,033
37,402
435,825

285,426

168,628

168,628

-

3,092,304

3,092,304

-

37 to 60
Months
-

$16,486,171

10,245,783

6,240,388

-

Totals
$ 4,919,773
2,695,746
336,165
285,426
2,873,806
1,358,736
37,402
718,185

876,703
282,360

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 on the following page is the minimum
rating required by (where applicable) the California Government Code, the District’s
investment policy, or debt agreements, and the actual rating as of fiscal year end for each
investment type.

40

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(2)

Cash and Investments (Continued)
Investment Type
U.S. Treasury bonds
Medium term notes
Supra-national agency bonds/notes
Asset-backed security/collateralized
mortgage obligations
CAMP
Federal agency bonds/notes
LAIF
Municipal bonds/notes
Federal agency collateralized
mortgage obligations
Held by trust:
PARS pooled trust - pension
Total

Amount
$ 4,919,773
2,695,746
336,165

Minimum
Legal
Rating
n/a
A
AA

285,426
2,873,806
1,358,736
37,402
718,185

AA
n/a
n/a
n/a
n/a

285,426
-

1,358,736
399,876

-

2,873,806
37,402
318,309

168,628

n/a

-

168,628

-

-

3,092,304

n/a

3,092,304

-

-

-

$3,713,895

7,638,361

1,904,398

3,229,517

$16,486,171

Rating as of Fiscal Year End
AA
A
Not Rated
- 4,919,773
791,348 1,904,398
336,165
AAA

$

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
District’s investment policy do not contain legal or policy requirements that would limit the
exposure to custodial credit risk for deposits or investments, other than the following provision
for deposits; the California Government Code requires that a financial institution secure deposits
made by state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the government unit). The
fair value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to
secure District deposits by pledging first trust deed mortgage notes having a value of 150% of
the secured public deposits.
As of June 30, 2024, the District has a custodial credit risk exposure of $16,486,171 because
the securities were held by the same broker-dealer (counterparty) that was used by the
District to buy the securities.

41

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(2)

Cash and Investments (Continued)
Investment in State Investment Pool
The District is a voluntary participant in Local Agency Investment Fund (LAIF) that is regulated
by the California Government Code under the oversight of the Treasurer of the State of
California. The fair value of the District’s investment in this pool is reported in the
accompanying financial statements at amounts based upon the District’s pro-rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of
that portfolio). The balance available for withdrawal is based on the accounting records
maintained by LAIF, which are recorded on an amortized cost basis.
Investment in California Asset Management Program (CAMP)
The District is a voluntary participant in the CAMP, which is an investment pool offered by the
California Asset Management 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.) for the purpose
of exercising the common power of its participants to invest certain proceeds of debt issues
and surplus funds. In accordance with Section 53601(p) of the California Government Code,
CAMP’s investments are limited to investments permitted by subdivisions (a) to (r), inclusive,
of Section 53601. The District reports its investments in CAMP at the fair value amounts
provided by CAMP, which is the same as the value of the pool share. At June 30, 2024, fair
value approximated cost and had an average maturity of less than 60 days.
Cash and Investments – OPEB and Pension Trusts
The District pre-funds the District’s pension plans and OPEB health plan through tax qualified
irrevocable trusts, organized under Internal Revenue Code Section 115. Pension and OPEB
trust fund assets are held on behalf of the District by the Public Agency Retirement Services
(PARS). The District provides investment direction and determines the amount and timing of
disbursements for PARS trust fund assets. Those guidelines are as follows:
Risk tolerance:

Moderate.

Risk management:

The portfolio is constructed to control risk through four
layers of diversification – asset classes (cash, fixed income,
equity), investment styles (large cap, small cap,
international, value, growth), managers and securities.
Disciplined mutual fund selection and monitoring process
helps to drive return potential while reducing portfolio risk.

Investment objective:

To provide growth of principal and income. It is expected
that dividend and interest income will comprise a significant
portion of total return, although growth through capital
appreciation is equally important.

42

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(2)

Cash and Investments (Continued)
Strategic ranges:

OPEB
0% – 10% Cash
40% – 60% Fixed income
40% – 60% Equity
Pension
0% – 10% Cash
45% – 65% Fixed income
30% – 50% Equity

Fair Value Measurement
The District categorizes its fair value investments within the fair value hierarchy established
by generally accepted accounting principles. The District has the following recurring fair value
measurements as of June 30, 2024:

Investment Type
U.S. Treasury bonds
Medium term notes
Supra-national agency bonds/notes
Asset-backed security/collateralized
mortgage obligations
CAMP
Federal agency bonds/notes
LAIF
Municipal bonds/notes
Federal agency collateralized
mortgage obligations
Held by trust:
PARS pooled trust - pension
Total investments

N/A
$

-

Fair Value Hierarchy
Level 1
Level 2
4,919,773
2,695,746
336,165

Level 3
-

Fair Value
4,919,773
2,695,746
336,165

2,873,806
37,402
-

-

285,426
1,358,736
718,185

-

285,426
2,873,806
1,358,736
37,402
718,185

-

-

168,628

-

168,628

3,092,304

-

-

-

3,092,304

$ 6,003,512

4,919,773

5,562,886

-

16,486,171

43

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(3)

Leases Revenue and Receivables
Leases subject to GASB 87 – Leases Receivable:
South Bay Family Healthcare Center
The District entered into a lease agreement dated June 29, 2009 with South Bay Family
Healthcare Center to lease a medical and office building at 2114 Artesia Boulevard, Redondo
Beach. The lease began in July 2009 and will end in June 30, 2030. The monthly base rent is
$15,051 and is adjusted by 3% each year. A discount rate of 5.00% is used to calculate the net
present value of the lease receivable. The District recognized $152,982 in lease revenue and
$55,090 in interest revenue during FY 2023/24 related to this lease. As of June 30, 2024, the
District’s receivable for lease payments is $1,021,826 and deferred inflows of resources in the
amount of $917,896.
Sunrise Beach Cities Assisted Living, LP
The District has entered into a lease agreement dated December 11, 1997, with Sunrise Beach
Cities Assisted Living to lease the real property located at the 1800 Block, Pacific Coast
Highway, Hermosa Beach. The entity which leases this property is 80% owned by the District.
The lease is for an initial term of 50 years and has two 11-year options. The lease commenced
in January 1999 and will end on February 29, 2048. The monthly base rent is $25,667. A
discount rate of 5.00% is used to calculate the net present value of the lease receivable. The
District recognized $170,652 in lease revenue and $215,956 in interest revenue during FY
2023/24 related to this lease. As of June 30, 2024, the District’s receivable for lease payments
is $4,268,875 and deferred inflows of resources in the amount of $4,038,723.
Silverado Senior Living
The District entered into a lease agreement dated May 18, 2006, with Silverado Senior Living,
Inc. to lease 35,008 square feet located at 514 N. Prospect Avenue, Redondo Beach. The lease
is for a term of 10 years and commenced in May 2006 and will end on June 30, 2031. The
monthly base rent was $80,000 for FY 2023/24. A discount rate of 5.00% is used to calculate
the net present value of the lease receivable. The District recognized $766,008 in lease revenue
and $310,647 in interest revenue during FY 2023/24 related to this lease. As of June 30, 2024,
the District’s receivable for lease payments is $5,858,546 and deferred inflows of resources in
the amount of $5,362,039.

44

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(3)

Leases Revenue and Receivables (Continued)
Leaps and Bounds Child Development Center
The District entered into a lease agreement dated May 18, 2006, with Leap and Bound Child
Development Center, LLC, to lease the 2-story building consisting of approximately 6,200
square feet situated on approximately 15,808 square feet of land including parking area
located at 601 South Pacific Coast Highway, Redondo Beach. The lease is for a term of 10
years, with one 10-year option to extend, and commenced on May 18, 2006 and will end on
May 17, 2026. The base rent for the lease and reimbursement to the District for common
area operating expenses was a total of $16,992 per month for FY 2023/24 and is increased
annually at the rate of 2% annually. A discount rate of 5.00% is used to calculate the net
present value of the lease receivable. The District recognized $179,796 in lease revenue and
$24,832 in interest revenue during FY 2023/24 related to this lease. As of June 30, 2024, the
District’s receivable for lease payments is $398,905 and deferred inflows of resources in the
amount of $359,591.
Beach District Surgery Center
The District entered into a lease agreement dated January 25, 2005, with Beach District
Surgery Center, LP, to lease the first floor consisting of approximately 13,104 square feet
located at 514 N. Prospect Avenue, Suite 100, Redondo Beach. The lease was for a term of
five years and commenced on March 1, 2005 and will end on February 28, 2025. The base
rent for the lease and reimbursement to the District for common area operating expenses
was a total of $45,180 per month for FY 2023/24. A discount rate of 5.00% is used to calculate
the net present value of the lease receivable. The District recognized $494,971 in lease revenue
and $32,363 in interest revenue during FY 2023/24 related to this lease. As of June 30, 2024,
the District’s receivable for lease payments is $364,610 and deferred inflows of resources in the
amount of $329,980.
Prospect One
The District entered into a lease agreement dated June 1, 1998 with Prospect One Corporation
for the use of certain parking facilities. The lease commenced on June 1, 1998 and will end
on May 31, 2030. The base rent for the lease to the District was a total of $16,667 per month
for FY 2023/24. A discount rate of 5.00% is used to calculate the net present value of the lease
receivable. The District recognized $161,770 in lease revenue and $55,079 in interest revenue
during FY 2023/24 related to this lease. As of June 30, 2024, the District’s receivable for lease
payments is $1,022,522 and deferred inflows of resources in the amount of $957,140.
Kaiser Foundation Health Plan, Inc.
The District entered into a lease agreement dated March 7, 2023 with Kaiser Foundation
Health Plan, Inc. for the use of physical therapy services. The lease commenced on March 7,
2023 and will end on December 31, 2024. The base rent for the lease to the District was a
total of $9,447 per month for FY 2023/24. A discount rate of 5.00% is used to calculate the
net present value of the lease receivable. The District recognized $114,217 in lease revenue
and $5,860 in interest revenue during FY 2023/24 related to this lease. As of June 30, 2024,
the District’s receivable for lease payments is $57,542 and deferred inflows of resources in the
amount of $47,788.

45

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(3)

Leases Revenue and Receivables (Continued)
The Regents of the University of California
The District entered into a lease agreement dated April 1, 2012, with The Regents of the
University of California, c/o University of California, Los Angeles Real Estate, to lease 8,708
square feet located at 514 N. Prospect Avenue, Redondo Beach. The lease is for a term of 10
years and commenced in April 2012. At the start of the lease agreement, the base rent for
both the lease and a reimbursement to the District for common area operating expenses was
a total of $24,382 per month. The base rents are adjusted by the change in the consumer
price index on the first day of the 10th month following the commencement of the lease, and
as of each 12th month thereafter during the term of the lease, capped at an increase of three
percent per year, on a non-cumulative basis. As of June 30, 2024, the base rent was $30,589
per month.
Omnilore
The District entered into a lease agreement dated August 1, 2016, with Omnilore, to lease L8
(Lower Level) approximately 1,280 square feet at 514 N. Prospect Avenue, Redondo Beach.
The lease is for a term of three years and commenced on August 1, 2021. Per the lease
agreement, the base rent for the lease and reimbursement to the District for common area
operating expenses was a total of $1,600 per month payable on the 1st day each month
following the commencement date of the lease. As of June 30, 2024, the monthly base rent
was $1,600.
Community Psychiatry Management, LLC
The District entered into a temporary medical office space agreement dated November 11,
2019, with Community Psychiatry Management, LLC, for temporary use of medical office
space of approximately 3,717 square feet located at 514 N. Prospect Avenue, 3rd floor,
Redondo Beach. Community Psychiatry Management, LLC is to remit a license fee of $11,000
each month to the District until the lease agreement is finalized. The District entered into a
lease agreement for a term of four years on February 1, 2020. The base rent for the lease
was a total of $11,039 per month payable on the 1st day each month following the
commencement date of the lease. The base rent is to increase four percent per year. As of
June 30, 2024, the monthly base rent has increased to $12,913.
Creative Life Mapping
The District entered into a lease agreement dated August 31, 2023, with Creative Life
Mapping, a sole proprietor, to lease an office space consisting of approximately 295 square
feet including a Storage Unit (Suit #L5) on the Lower Level of the Building located at 514 N.
Prospect Avenue, Redondo Beach. The lease is for a term of 4 months, 1 year, with no option
to extend, and commenced on November 1, 2023, and will end on February 28, 2025. The
base rent for the lease and reimbursement to the District for common area operating expenses
was a total of $1,206 per month for FY 2023/24. Rent will not escalate and will remain fixed
through the Lease. A discount rate of 5.00% is used to calculate the net present value of the
lease receivable. The District recognized $9,648 in lease revenue and $488 in interest revenue
during FY 2023/24 related to this lease. As of June 30, 2024, the District’s receivable for lease
payments is $9,469 and deferred inflows of resources in the amount of $8,981.

46

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(3)

Leases Revenue and Receivables (Continued)
Taking Time
The District entered into a lease agreement dated July 26, 2023, with Taking Time: South
Bay, to lease an office space consisting of approximately 295 square feet including a Storage
Unit (Suit #L6) on the Lower Level of the Building located at 514 N. Prospect Avenue, Redondo
Beach. The lease is for a term of 6 months, 1 year, with no option to extend, and commenced
on September 1, 2023, and will end on February 28, 2025. The base rent for the lease and
reimbursement to the District for common area operating expenses was a total of $841 per
month for FY 2023/24 and is increased annually at a rate of 3%. A discount rate of 5.00% is
used to calculate the net present value of the lease receivable. The District recognized $8,406
in lease revenue and $2,988 in interest revenue during FY 2023/24 related to this lease. As of
June 30, 2024, the District’s receivable for lease payments is $68,712 and deferred inflows of
resources in the amount of $65,724.
Redondo Beach Chamber of Commerce
The District entered into a lease agreement dated July 3, 2023, with Redondo Beach Chamber
of Commerce to lease an office space consisting of approximately 1,660 square and Reception
(Suit #301) on the third floor of the Building located at 514 N. Prospect Avenue, Redondo
Beach. The lease is for a term of 6 months, 1 year, with no option to extend, and commenced
on September 1, 2023, and will end on February 28, 2025. The base rent for the lease and
reimbursement to the District for common area operating expenses was a total of $2,300 per
month for FY 2023/24. A discount rate of 5.00% is used to calculate the net present value of
the lease receivable. The District recognized $23,000 in lease revenue and $1,254 in interest
revenue during FY 2023/24 related to this lease. As of June 30, 2024, the District’s receivable
for lease payments is $18,060 and deferred inflows of resources in the amount of $16,806.
Shakespeare by the Sea
The District entered into a lease agreement dated February 20, 2024, with Shakespeare by
the Sea to lease Suit L1 of a building consisting of approximately 8,198 square plus 6,414
exterior square feet described as a floor plan attached to the “Premises” located at 514 N.
Prospect Avenue, Redondo Beach. The lease is for a term of 8 months, 2 years, with an
option to extend if an agreement between Landlord and Tenant continue, and commenced on
May 1, 2024, and will end on December 31, 2026. The base rent for the lease and
reimbursement to the District for common area operating expenses was a total of $2,000 per
month for FY 2023/24. Rent will not escalate and will remain fixed through the Lease. A
discount rate of 5.00% is used to calculate the net present value of the lease receivable. The
District recognized $3,000 in lease revenue and $491 in interest revenue during FY 2023/24
related to this lease. As of June 30, 2024, the District’s receivable for lease payments is $56,291
and deferred inflows of resources in the amount of $56,800.
Flying Lion Inc.
The District entered into a lease agreement dated March 22, 2024, with Flying Lion Inc. to
lease Suit #105 of a building consisting of approximately 385 square plus a floor plan attached
to the “Premises” located at 514 N. Prospect Avenue, Redondo Beach. The lease is for a term
of 8 months, 2 years, with an option to extend if an agreement between Landlord and Tenant

47

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(3)

Leases Revenue and Receivables (Continued)
continue, and commenced on May 1, 2024, and will end on December 31, 2026. The base
rent for the lease and reimbursement to the District for common area operating expenses
was a total of $1,500 per month for FY 2023/24 and is increased annually at a rate of 3%. A
discount rate of 5.00% is used to calculate the net present value of the lease receivable. The
District recognized $3,000 in lease revenue and $378 in interest revenue during FY 2023/24
related to this lease. As of June 30, 2024, the District’s receivable for lease payments is $43,378
and deferred inflows of resources in the amount of $43,000.

(4)

Notes Receivable
As of June 30, 2024, the District’s net investment in notes receivable was:
Ducot note – unpaid balance
Ducot note – unamortized purchase discount

$

Net investment in notes receivable
Note – South Bay Family Health Care

565,658
(183,333)
382,325
309,219

Total net investment in notes receivable

$

691,544

Ducot
On September 11, 2002, as a result of a settlement agreement between the District and
Prospect South Bay, a California Limited Partnership (Partnership), the District purchased a
note (Ducot note) that had an unpaid outstanding balance of $12,073,740. The amount of
cash paid to acquire this note was $3,915,396. The difference between the face value (unpaid
outstanding balance) of the note at the date of purchase and the amount paid to acquire the
note is required by generally accepted accounting principles to be recognized as a purchase
discount that is amortized over the term of the note. Monthly payments of $96,472 through
December 2024 are due on the note receivable.
As of June 30, 2024, the note had an unpaid balance of $565,658 and a remaining
unamortized purchase discount of $550,001, resulting in the reporting of a note receivable at
a net cost of $382,325.
Principal and interest to be received on the note are as follows:
Fiscal Year
Principal
Ended June 30,
$
565,658
2025
Totals

$

565,658

Interest
13,172

Total
578,830

13,172

578,830

Venice Family Clinic (Formerly known as Southbay Family Health Care)
On May 15, 2021, the District executed a standard industrial/commercial single tenant lease
agreement and a revolving credit agreement with Beach Cities Child Development Center for
the premises located at 2114 Artesia Boulevard, Redondo Beach. Pursuant to the

48

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(4)

Notes Receivable (Continued)
agreements, the lessee agreed to lease the premises for a period of approximately 10 years,
and to make certain alterations, additions or improvements to the premises related to the
lessee’s operation of the premises. The District originally agreed to lend the lessee up to
$420,000 to be used by the lessee to make improvements to the premises.
The District advanced $412,054 of the improvement loan to the lessee pursuant to the
revolving credit agreement, which indebtedness was originally evidenced by the revolving
promissory note. The lessee then discharged its obligations under the revolving credit
agreement (which has been cancelled) by executing a term promissory note with an initial
principal balance of $412,054, dated July 1, 2021.
The outstanding amount under the term note bears interest equal to 5%. Monthly payments
are due through June 30, 2030; unless the parties agree to extend the lease beyond June 30,
2030. As of June 30, 2024, the note has a balance of $309,219. Principal and interest to be
received on the note are as follows:

Fiscal Year
Principal
Ended June 30,
2025
$
37,844
2026
39,780
2027
41,816
2028
43,955
2029
46,204
99,620
2030 - 2031
Totals

$

309,219

Interest
14,601
12,665
10,630
8,491
6,242
5,271

Total
52,445
52,445
52,446
52,446
52,446
104,891

57,900

367,119

49

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(5)

Capital Assets
Changes in capital assets for governmental activities for the fiscal year ended June 30, 2024
were as follows:
Balance at
June 30, 2023
Capital assets not being depreciated:
Land
Construction in progress

Deletions

Balance at
June 30, 2024

4,401,926
12,706,466

1,202,789

(550,967)

4,401,926
13,358,288

Total capital assets not being depreciated

17,108,392

1,202,789

(550,967)

17,760,214

Capital assets being depreciated:
Buildings and improvements
Equipment, furniture and fixtures
Bike Path*
Subscription-based IT assets
Leased assets

48,738,800
2,652,063
256,558
507,768

323,616
2,064,568
20,001
-

(1,135,512)
-

48,738,800
2,975,679
929,056
276,559
507,768

Total capital assets being depreciated

52,155,189

2,408,185

(1,135,512)

53,427,862

Less accumulated depreciation and
amortization for:
Buildings and improvements
Equipment, furniture and fixtures
Bike Path*
Subscription-based IT assets
Leased assets

(36,304,210)
(1,121,630)
(73,744)
(119,472)

(1,662,308)
(499,988)
(155,599)
(94,324)
(59,736)

38,369
-

(37,966,518)
(1,621,618)
(117,230)
(168,068)
(179,208)

Total accumulated depreciation and
amortization

(37,619,056)

(2,471,955)

38,369

(40,052,642)

Capital assets being depreciated, net

14,536,133

(63,770)

(1,097,143)

13,375,220

31,644,525

1,139,019

(1,648,110)

31,135,434

Capital assets, net

$

Additions

$

Depreciation and amortization expense was charged to Preventive Health Services in the
amount of $2,471,955.
* A portion of the bike path was transferred to a local government agency.
(6)

Investments in Limited Partnerships
Sunrise Beach Cities Assisted Living, L.P.
On August 20, 2002, the District acquired an 80% limited partnership interest in Sunrise
Beach Cities Assisted Living, L.P. (Sunrise). The entity owns and operates an 80-unit assisted
living community in Hermosa Beach. Sunrise has a calendar year end. The limited
partnership is managed by Sunrise Assisted Living Management, Inc., which is not related to
the District. Additional information regarding the partnership can be obtained by contacting
the District.

50

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(6)

Investments in Limited Partnerships (Continued)
As of June 30, 2024, after allocation of partnership income (loss) and distributions from the
partnership to the District, the investment in Sunrise was $10,030,758. Financial statements
may be obtained by sending a written request to Sunrise Senior Living, LLC, 7902 Westpark
Drive, McLean, Virginia 22102.
Beach District Surgery Center, LLC
In August 2004, the District executed an agreement to enter into a partnership with Beach
District Surgery Center, LLC (BDSC) and contributed $52,500 to acquire a 5% limited
partnership interest. BDSC is currently leasing a surgical space in the District’s building
located at 514 N. Prospect Avenue, Redondo Beach. The partnership is managed by BDSC
and additional information regarding the partnership can be obtained by contacting the
District. As of June 30, 2024, after allocation of partnership income (loss) and distributions
from the partnership to the District, the investment in BDSC was $38,018. Financial
statements may be obtained by sending a written request to Beach District Surgery Center,
LLC, 514 N. Prospect Avenue, Suite 100, Redondo Beach, California 90277.

(7)

Long-Term Liabilities
The following is a summary of changes in Governmental Activities long-term debt for the fiscal
year ended June 30, 2024:

Leases payable
Compensated absences payable
Total

Balance as of
June 30, 2023
$
1,430,129
537,780

Additions
392,951

Deletions
(734,698)
(342,582)

Balance as of
June 30, 2024
695,431
588,149

Due Within
One Year
415,634
288,837

$

392,951

(1,077,280)

1,283,580

704,471

1,967,909

Leases Payable
In 2002, the District acquired the right to use certain parking facilities from Prospect South
Bay, a California Limited Partnership. In return for the right to use the facilities, the District
agreed to make monthly payments of $60,000 through December 2025. The agreement
provides for interest at 7.94% a year. The initial principal obligation under the agreement
was $7,509,201, which was recorded as a lease payable for the acquisition of the parking
facilities.

51

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(7)

Long-Term Liabilities (Continued)
During the year ended June 30, 2024, the District paid principal of $663,184. The outstanding
balance was $351,996 as of June 30, 2024. The following is a summary of future minimum
lease payment requirements:

Fiscal Year
Ended June 30,
2025

Principal
$
351,996

Totals

$

Interest
5,675

Total
357,671

5,675

357,671

351,996

The District entered into an operating lease agreement with the Redondo Beach Unified School
District to lease 6,954 square feet located at 1200 Del Amo Street, Redondo Beach to serve
as its administrative offices. The lease is for a term of sixteen years commencing January 1,
2014, and the monthly lease payment is $6,954 due at the first of each month. The leasing
contract presents two options to be extended from January 1, 2030 to December 31, 2044,
and January 1, 2045 to December 31, 2059. The base rent will be adjusted by a factor of 3%
biennially on the anniversary of the rent date. However, the base rent will be reduced for the
last 10 years of the original term by an amount equal to the amortized tenant improvements,
and the value of rent adjustment shall not exceed $232,000. The lease expires December
31, 2029. The following is a summary of future minimum payment requirements:
Fiscal Year
Ended June 30,

Principal

Interest

Total

2025
2026
2027
2028
2029
2030

$

36,302
60,012
64,381
69,362
74,638
38,740

21,661
21,459
21,255
21,051
20,846
20,640

57,963
81,471
85,636
90,413
95,484
59,380

Totals

$

343,435

126,912

470,347

52

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(8)

Subscription-Based Information Technology (IT) Arrangements
On January 1, 2020, the District entered into a 60-month subscription for the use of CSI
Software. An initial subscription liability was recorded in the amount of $112,301. As of June
30, 2024, the value of the subscription liability is $23,621. The District is required to make
monthly fixed payments of $3,900 for calendar year 2024. The subscription has an interest
rate of 5.0%. The value of the right to use asset as of June 30, 2024 of $112,301 with
accumulated amortization of $89,832 is included in note 4 with subscription-based IT assets.

(9)

Year
Ending

Subscription
Payable

2025

$

23,621

$

23,621

Defined Benefit Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the District’s
cost-sharing multiple employers defined benefit pension plans administered by CalPERS.
Benefit provisions under the Plans are established by State statute and Local Government
resolution. A full description of the pension plan benefit provisions, assumptions (for funding
purposes but not accounting purposes), and membership information is listed in the June 30,
2022 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided
can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’
audited financial statements are publicly available reports that can be obtained at CalPERS’
website.

53

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(9)

Defined Benefit Pension Plan (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments
and death benefits to plan members, who must be public employees and beneficiaries. Benefits
are based on years of credited service, equal to one year of full-time employment. The Plans’
provisions and benefits in effect at June 30, 2024, are summarized as follows:

Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a percentage of
eligible compensation
Required employee contribution rates
Required employer contribution rates

Miscellaneous
Prior to
January 1, 2013
2% @ 60
5 years of service
monthly for life
50-60

PEPRA
On or after
January 1, 2013
2% @ 62
5 years of service
monthly for life
52-62

1.092% to 2.418%
6.93%
10.66%

1% to 2.5%
7.75%
7.68%

Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the
employer contribution rates for all public employers are determined on an annual basis by the
actuary and shall be effective on the July 1 following notice of a change in the rate. The total
plan contributions are determined through CalPERS’ annual actuarial valuation process. The
actuarially determined rate is the estimated amount necessary to finance the costs of benefits
earned by employees during the year, with an additional amount to finance any unfunded
accrued liability. The employer is required to contribute the difference between the actuarially
determined rate and the contribution rate of employees. Employer contribution rates may
change if plan contracts are amended. Payments made by the employer to satisfy
contribution requirements that are identified by the pension plan terms as plan member
contribution requirements are classified as plan member contributions.

54

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(9)

Defined Benefit Pension Plan (Continued)
Actuarial Methods and Assumptions used to determine Total Pension Liability
The June 30, 2022 valuation was used to determine the June 30, 2024 total pension liability,
based on the following actuarial methods and assumptions:
Actuarial cost method
Actuarial assumptions:
Discount rate
Inflation
Salary increases
Mortality rate table1
Post Retirement Benefit Increase

Entry Age Actuarial Cost Method
6.90%
2.30%
Varies by entry age and service
Derived using CalPERS’ membership data for
all funds
The lesser of contract COLA or 2.30% until
Purchasing Power Protection Allowance floor
on purchasing power applies, 2.30%
thereafter

The mortality table used was developed based on CalPERS-specific data. The probabilities
of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial
Assumptions. Mortality rates incorporate full generational mortality improvement using
80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table,
please refer to the 2021 experience study from November 2021 that can be found on the
CalPERS website.
1

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan
members will be made at the current member contribution rates and that contributions from
employers will be made at statutorily required rates, actuarially determined. Based on those
assumptions, the Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
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.

55

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(9)

Defined Benefit Pension Plan (Continued)
In determining the long-term expected rate of return, CalPERS took into account both shortterm and long-term market return expectations. Using historical returns of all of the funds’
asset classes, expected compound (geometric) returns were calculated over the next 20
years using a building-block approach. The expected rate of return was then adjusted to
account for assumed administrative expenses of 10 Basis points. The expected real rates of
return by asset class are as followed:

Asset Class 1
Global Equity – Cap-weighted
Global Equity – Non-Cap-weighted
Private Equity
Treasury
Mortgage-backed Securities
Investment Grade Corporates
High Yield
Emerging Market Debt
Private Debt
Real Assets
Leverage
1
2

Assumed Asset
Allocation
30.0 %
12.0
13.0
5.0
5.0
10.0
5.0
5.0
5.0
15.0
(5.0)

Real Return1,2
4.54 %
3.84
7.28
0.27
0.50
1.56
2.27
2.48
3.57
3.21
(0.59)

An expected inflation of 2.30% used for this period.
Figures are based on the 2021 Asset Liability Management study.

Allocation of Net Pension Liability and Pension Expense to Individual Employers
A key aspect of GASB 68 pertaining to cost-sharing employers is the establishment of an
approach to allocate the net pension liability and pension expense to the individual employers
within the risk pool. Paragraph 49 of GASB 68 indicates that for pools where contribution
rates within the pool are based on separate relationships, the proportional allocation should
reflect those relationships. The allocation method utilized by CalPERS determines the
employer’s share by reflecting these relationships through the plans they sponsor within the
risk pool. Plan liability and asset-related information are used where available, and
proportional allocations of individual plan amounts as of the valuation date are used where
not available.

56

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(9)

Defined Benefit Pension Plan (Continued)
The following table shows the Plan’s proportionate share of the net pension liability over the
measurement period:

Balance at: 6/30/2022 (MD)
Balance at: 6/30/2023 (MD)
Net Changes during 2022-23

Increase (Decrease)
Total Pension
Plan Fiduciary
Liability
Net Position
(a)
(b)
$
20,085,685
15,960,648
21,771,964
17,110,799
1,686,279
1,150,151

Net Pension
Liability
(c) = (a) - (b)
4,125,037
4,661,165
536,128

The District’s proportionate share of the net pension liability as of June 30, 2022 and 2023
(Measurement Date) was as follows:

Proportion – June 30, 2022 (MD)
Proportion – June 30, 2023 (MD)
Change – Increase (Decrease)

Miscellaneous
0.08816%
0.09322%
0.00506%

Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the Measurement Date,
calculated using the discount rate of 6.90 percent, as well as what the net pension liability
would be if it were calculated using a discount rate that is one percentage-point lower (5.90
percent) or one percentage-point higher (7.90 percent) than the current rate:
Discount Rate 1% (5.90%)
Plan’s net pension liability

$

7,605,760

Current Discount
Rate (6.90%)

Discount Rate +
1% (7.90%)

4,661,165

2,237,535

57

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(9)

Defined Benefit Pension Plan (Continued)
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net
position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss
occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of
resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Net Difference between projected
and actual earnings on pension
plan investments

5 year straight-line amortization

All other amounts

Straight-line amortization over the
average expected remaining service
lifetime (EARSL) of all members that are
provided with benefits (active, inactive,
and retired) as of the beginning of the
measurement period.

The EARSL for PERF C for the measurement period ending June 30, 2023 is 3.8 years, which
was obtained by dividing the total service years of 600,538 (the sum of remaining service
lifetimes of the active employees) by 160,073 (the total number of participants: active,
inactive, and retired) in PERF C. Inactive employees and retirees have remaining service
lifetimes equal to 0. Total future service is based on the members’ probability of decrementing
due to an event other than receiving a cash refund.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to
Pensions
For the measurement period ending June 30, 2023 (the measurement date), the District
recognized pension expense of $977,552 for the Plan.

58

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(9)

Defined Benefit Pension Plan (Continued)
As of June 30, 2024, the District reports other amounts for the Plan as deferred outflow and
deferred inflow of resources related to pensions as follows:

Changes of Assumptions
Differences between Expected and Actual Experience
Differences between Projected and Actual Investment Earnings
Differences between Employer's Contributions and Proportionate
Share of Contributions
Change in Employer's Proportion
Pension Contributions Made Subsequent to Measurement Date
Totals

Deferred Outflows
of Resources
$
281,416
238,118
754,685
371,459
442,733
$
2,088,411

Deferred Inflows
of Resources
36,938
507,180
544,118

The $507,180 deferred inflows of resources are derived from the difference between actual
contributions made by the employer and the employer’s proportionate share of the risk pool’s
total contributions. The employer’s pension expense is adjusted for the amortization of this
additional deferral. This item is required to be amortized over the plan’s Expected Average
Remaining Service Lives (EARSL). The $442,733 reported as deferred outflows of resources
related to employer contributions subsequent to the measurement date will be recognized as
a reduction of the net pension liability in the fiscal year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Measurement
Period Ended
June 30,

(10)

Deferred Outflows/
(Inflows) of
Resources

2025
2026
2027
2028
2029
Thereafter

$

329,487
213,840
536,577
21,656
-

Total

$

1,101,560

Deferred Compensation Plan
Certain provisions of the Small Business Job Protection Act (the Act) affected Internal Revenue
Code Section 457 plans by eliminating the requirement that Section 457 plan assets legally
remain the assets of the sponsoring government. The Act requires that amounts deferred under
a Section 457 plan be held in trust for the exclusive benefit of participating employees and not
be accessible by the government or its creditors.

59

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(10)

Deferred Compensation Plan (Continued)
The District has implemented GASB Statement No. 32, Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans. The assets have been
transferred into a trust and are no longer subject to claims of the District’s general creditors
and are no longer considered the assets of the District. The plan permits all District employees
to defer a portion of their salary until future years. The amount deferred is not available to
employees until termination, retirement, death or unforeseeable emergency.
The District contracts with a private deferred compensation administration firm to act as an
agent of the District to fulfill all the District’s administrative responsibilities. The duties
performed by this fiduciary on behalf of the District include assisting employees in the
execution of investment transactions and providing summary and participant reporting of
these investments. Employees select investments from a range of options presented by the
fiduciary.
Since the District has placed the assets into a trust, has little administrative involvement and
does not perform the investing function for the plan, the assets of the various deferred
compensation plans have been removed from the District’s financial statements. The District
makes no contribution to the plan on behalf of the members.

(11)

Other Postemployment Benefits (OPEB)
Plan Description
The District provides health care benefits for retired employees and their beneficiaries through
an agent-multiple employer defined retiree healthcare plan. The Other Postemployment
Benefits Plan (the Plan) is administered by CalPERS.
In 2019, the District established a trust with Public Agency Retirement Services (PARS) to
hold assets that are legally restricted for the District’s OPEB plan under Section 115 of the
Internal Revenue Code. Contributions to the OPEB Trust and earnings on those contributions
are irrevocable.
The PARS OPEB Trust issues a publicly available financial report for the fiduciary net position
that is available upon request. Copies of PARS’s annual financial report may be obtained from
its executive office at 4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660.
The District’s OPEB Plan does not issue a separate financial report.
Benefit’s provided
For all covered employees, the District contributes the actual cost of insurance up to the
legally required Public Employees Medical & Hospital Care Act (PEMHCA) minimum
contribution. Benefits vary by hire date, employment status and employment classification
and continue to the surviving spouses.
The District makes medical insurance available after the age of 50 to all employees who meet
the requirement of five years of service.

60

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(11)

Other Post-Employment Benefits (OPEB) (Continued)
Employees Covered
As of the June 30, 2023 measurement date, the following current and former employees were
covered by the benefit terms under the HC Plan:
Active employees
Inactive employees or beneficiaries currently receiving benefits
Inactive employees entitled to, but not yet receiving benefits

77
6
13

Total

96

Contributions
The annual contribution is based on the actuarially determined contribution. For the
measurement period ended June 30, 2023, the District’s cash contributions were $10,800 in
benefit payments, an estimated implied subsidy of $10,250 resulting in total payments of
$21,050.
OPEB Liability
The District’s OPEB liability was measured as of June 30, 2023 and the total OPEB liability
used to calculate the OPEB Liability was determined by an actuarial valuation dated June 30,
2023 that was used to determine the June 30, 2024 total OPEB liability, based on the following
actuarial methods and assumptions:
Actuarial Cost Method:
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality, Retirement,
Disability, Termination
Mortality Improvement
Healthcare Trend Rate

Entry Age Normal
5.75%
2.50%
2.75%
5.75%
CalPERS 2000-2019 Experience Study
Mortality projected fully generational with Scale MP-2021
Non-Medicare: 8.50% for 2025 decreasing to an ultimate rate
of 3.45% in 2076 and later years
Medicare (Non-Kaiser): 7.5% for 2025, decreasing to an
ultimate rate of 3.45% in 2076 and later years
Medicare (Kaiser): 6.25% for 2025, decreasing to an ultimate
rate of 3.45% in 2076 and later years

61

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(11)

Other Post-Employment Benefits (OPEB) (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 5.75 percent. The projection
of cash flows used to determine the discount rate assumed that District 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.
Changes in the OPEB Liability, Fiduciary Net Position, and Net OPEB Liability (Asset)
The changes in the OPEB Liability, Fiduciary Net Position, and Net OPEB Liability (Asset) for
the HC Plan are as follows:

Balance at June 30, 2023
(Measurement Date June 30, 2022)
Changes recognized for the measurement period:
Service cost
Interest
Actual vs. expected experience
Changes of assumptions
Contributions - employer
Net investment income
Benefit payments
Administrative expense
Net Changes
Balance at June 30, 2024
(Measurement Date June 30, 2023)

Total OPEB
Liability

Fiduciary Net
Position

Net OPEB
Liability (Asset)

$

$

$

683,223
51,283
41,629
(112,157)
(33,938)
(21,050)
(74,233)

$

608,990

611,896
21,234
57,535
(21,050)
(1,760)
55,959

$

667,855

71,327
51,283
41,629
(112,157)
(33,938)
(21,234)
(57,535)
1,760
(130,192)

$

(58,865)

Sensitivity of the Net OPEB Asset to Changes in the Discount Rate
The following presents the Net OPEB Asset of the District if it were calculated using a discount
rate that is one percentage point lower or on percentage point higher than the current rate,
for measurement period ended June 30, 2023:

Net OPEB Liability (Asset)

1% Decrease
(4.75%)
$
34,189

Current
Discount Rate
1% Increase
(5.75%)
(6.75%)
$
(58,865) $
(134,987)

62

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(11)

Other Post-Employment Benefits (OPEB) (Continued)
Sensitivity of the Net OPEB Asset to Changes in the Health Care Cost Trend Rates
The following presents the Net OPEB Asset of the District 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 measurement period ended June 30, 2023:

Net OPEB Liability (Asset)

Current
1% Decrease
Healthcare Trend
$
(152,342) $
(58,865)

1% Increase
$
61,540

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. Amounts 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:
Net difference between projected and actual
earnings on OPEB plan investments

5 years

All other amounts

Expected average remaining service
lifetime (EA.RSL) (12.1 Years at June 30,
2023)

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the fiscal year ended June 30, 2024, the District recognized a net OPEB expense of $6,729.
As of June 30, 2024, the District reported deferred outflows of resources related to OPEB from
the following sources:

63

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(11)

Other Post-Employment Benefits (OPEB) (Continued)
The $20,198 reported as deferred outflows of resources related to contributions subsequent
to the June 30, 2023 measurement date will be recognized as a reduction of the OPEB Liability
during the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows of
resources related to OPEB will be recognized as expense as follows:

Measurement
Deferred
Period Ended Outflows/(Inflows)
of Resources
June 30,
2025
$
(55,625)
2026
(60,022)
2027
(34,799)
2028
(61,180)
2029
(48,763)
(123,033)
Thereafter
Total
$
(383,422)
(12)

Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the District
carries commercial insurance. There were no significant reductions in insurance coverage
from the previous year and there have been no material settlements in excess of coverage
in any of the past three fiscal years.
General Liability Insurance
Directors and Officers liability coverage: Annual premiums are paid by the District and are
adjusted retrospectively to cover costs. The coverage of Directors, Officers and Trustees
Liability includes entity coverage, duty to defend, and employee practice liability. Insurance
coverage is for up to $5,000,000 per occurrence, and $5,000,000 in aggregate, defense
expenses paid within limits with a $50,000 deductible per claim.
Commercial Crime liability coverage: Annual premiums are paid by the District and are
adjusted retrospectively to cover costs. The coverage of the Commercial Crime liability
includes employee theft per loss coverage, forgery and alteration including credit, debit or
charge card forgery, inside of premises (theft of money, and securities, robbery, safe
burglary of other property), outside the premises, computer fraud including funds transfers,
money orders and counterfeit paper currency. Insurance coverage is for up to $1,000,000
per occurrence with a $2,500 deductible.
Health Care liability coverage: Annual premiums are paid by the District and are adjusted
retrospectively to cover costs. The Health Care liability coverage includes evidence of
healthcare entity professional liability, bodily injury and property damage liability, personal
injury, advertising injury liability, employee benefit liability coverage. Insurance coverage is
for up to $2,000,000 per claim, and a $5,000,000 aggregate per contracted period.

64

BEACH CITIES HEALTH DISTRICT
Notes to the Basic Financial Statements
(Continued)

(12)

Risk Management (Continued)
Automobile liability coverage: Annual premiums are paid by the District. The automobile
liability coverage includes bodily injury and property damage liability, an
uninsured/underinsured motorist coverage sub-limit of $1,000,000 per accident, hired/nonowned auto liability, medical payment of $5,000 per accident, collision coverage at fair
market value, and comprehensive coverage at fair market value. Insurance coverage is for
up to $1,000,000 per accident (combined single limit), with $250 comprehensive and $500
collision deductibles.
Adventure Course liability coverage: Annual premiums are paid by the District. Insurance
coverage is for up to $1,000,000 per occurrence, and $2,000,000 aggregate with a $5,000
deductible.
Property and Earthquake Insurance
The coverage of this insurance includes all risk of direct physical loss or damage including
earthquake and flood, boiler and machinery, and repair or replacement cost valuation for real
and personal property. Insurance coverage is for up to $1,000,000,000 loss limit per
occurrence, $3,500,000 earthquake and flood limit but only for locations 9, 12 & 13 of the
Alliant Property Schedule and $100,000,000 of boiler and machinery loss limit per occurrence.
The primary terrorism limit is shared by all of the insured per the Public Entity Property
Insurance Program (PEPIP). The deductible amounts per occurrence are $25,000 for all risk,
5% per unit of insurance subject to $100,000 minimum for Earthquake, $250,000 for Flood
in Zones A & V, $100,000 for Flood in zones other than A & V, $25,000 for boiler and
machinery, and $25,000 for primary terrorism.

65

Required Supplemental
Information

66

BEACH CITIES HEALTH DISTRICT
Schedule of the Plan’s Proportionate Share of the Net Pension Liability
and Related Ratios as of the Measurement Date
Year Ended June 30, 2024
(With comparative information for the last 10 years)

6/30/2014
Plan’s proportion of the net pension
liability (asset)

6/30/2015

0.0291%

6/30/2016

0.0566%

Measurement Date
6/30/2018
6/30/2019

6/30/2017

0.0637%

0.0675%

0.0679%

6/30/2020

0.0721%

6/30/2021

0.0777%

6/30/2022

0.6950%

6/30/2023

0.0882%

0.0932%

Plan’s proportionate share of the net
pension liability (asset)

$

1,806,648

$

1,552,792

$

2,212,946

$

2,659,667

$

2,559,376

$

2,886,911

$

3,275,728

$

1,319,472

$

4,125,037

$

4,661,165

Plan’s covered payroll

$

3,370,822

$

3,443,030

$

3,666,056

$

3,865,015

$

3,948,862

$

4,213,339

$

4,654,874

$

4,622,497

$

4,640,323

$

4,947,249

Plan’s proportionate share of the net
pension liability (asset) as a
percentage of its covered payroll

53.5967%

45.0996%

60.3631%

68.8139%

64.8130%

68.5184%

70.3720%

28.5446%

88.8955%

94.2173%

Plan’s proportionate share of the
fiduciary net position as a percentage
of the plan’s proportionate share
total pension liability

81.1494%

80.4073%

79.2817%

26.1326%

21.8432%

22.8513%

24.7944%

7.9578%

25.8450%

27.2411%

67

BEACH CITIES HEALTH DISTRICT
Schedule of the Plan’s Proportionate Share of the Net Pension Liability
and Related Ratios as of the Measurement Date
Year Ended June 30, 2024
(With comparative information for the last 10 years)

6/30/2015
Actuarially determined contribution
Contributions in relation to the
ac tuarially determined contribution

$

Contribution deficiency (excess)

$

Covered payroll

$

Contributions as a percentage of
covered payroll

6/30/2016

6/30/2017

6/30/2018

Fiscal Year
6/30/2019
6/30/2020

6/30/2021

6/30/2022

6/30/2023

6/30/2024

284,802

246,826

269,230

271,274

298,759

340,900

368,376

360,309

387,432

442,733

(284,802)

(246,826)

(269,230)

(271,274)

(298,759)

(340,900)

(368,376)

(360,309)

(387,432)

(442,733)

-

-

-

-

-

-

-

-

-

-

3,443,030

3,666,056

3,865,015

3,948,862

4,213,339

4,654,874

4,622,497

4,640,323

4,947,249

5,265,177

8.27%

6.73%

6.97%

6.87%

7.09%

7.32%

7.97%

7.76%

7.83%

8.41%

68

BEACH CITIES HEALTH DISTRICT
Schedule of the Plan’s Proportionate Share of the OPEB Liability
and Related Ratios as of the Measurement Date
Year Ended June 30, 2024
(With comparative information for the last 10 years) *
Measurement Period
2016-2017
Total OPEB liability:
Servic e c ost
Interest on the total OPEB liability
Actual and expec ted experience difference
Changes in assumptions
Changes in benefit terms
Benefit payments

$

Net c hange in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending
Plan Fiduciary Net Position
Contribution - employer
Transfers to pension trust
Net investment income
Benefit payments
Administrative expense

2017-2018

2021-2022

2022-2023

51,789 $
32,192
(9,684)

53,343 $
36,833
21,274
(26,805)
(12,858)

49,910 $
51,283
37,654
41,629
(112,157)
(33,938)
(18,550)
(21,050)

22,216
650,611

64,548
672,827

74,297
468,125

71,787
542,422

69,014
614,209

(269,250)
737,375

$

672,827

$

737,375

$

468,125

$

-

$

-

$

643,863 $
536
(10,050)
(603)
633,746
-

-

-

$

-

$

-

Net OPEB liability (asset) - ending (a)-(b)

$

672,827

$

737,375

Net OPEB liability as a perc entage of c overed
employee payroll

2020-2021

94,484 $
90,951 $
27,131
31,862
(203,672)
(38,141)
(178,341)
(18,926)
(10,050)

Plan fiduc iary net position - ending (b)

Covered-employee payroll

2019-2020

109,329 $
21,440
(93,266)
(15,287)

Net c hange in plan fiduciary net position
Plan fiduc iary net position - beginning

Plan fiduciary net position as a perc entage of the total
OPEB liability

2018-2019

$

633,746

$

$

542,422

$

608,990

9,752 $
12,944 $
(100,000)
17,569
163,539
(9,684)
(12,858)
(1,659)
(1,788)

18,683 $
(97,917)
(18,550)
(1,881)

21,234
57,535
(21,050)
(1,760)

15,978
633,746

(99,665)
711,561

55,959
611,896

649,724

$

614,209

$

61,837
649,724
$

$ (165,621) $ (107,302) $

711,561

683,223

(74,233)
683,223

$

611,896

$

667,855

(97,352) $

71,327

$

(58,865)

0.00%

0.00%

135.38%

119.78%

115.85%

89.56%

109.67%

$ 3,865,015

$ 3,948,380

$ 5,608,266

$ 5,906,109

$ 5,770,423

$ 5,708,768

$ 6,267,486

17.41%

18.68%

-2.95%

-1.82%

-1.69%

1.25%

-0.94%

* The fiscal year ended June 30, 2017 was the first year of implementation, therefore information for the period previous to that measurement date is
unavailable.
Notes to Schedule:
Changes in assumptions. The medic al trend rates and PEMHCA minimum inc rease have been updated as of June 30, 2023 measurement date. For nonMedicare, rates changed to 8.5% for 2025, dec reasing to an ultimate rate of 3.45% in 2076; Medicare (Non-Kaiser) - 7.50% for 2025; Medic are (Kaiser) 6.25% for 2025, dec reasing to an ultimate rate of 3.45% in 2076. PEMCHA minimum inc rease updated to 3.50% annually.
Historic al information is required only for measurement periods for whic h GASB 75 is applic able. Future years' information will be displayed up to 10 years as
information bec omes available.
Contributions to OPEB plan are not based on a measure of payroll.

69

BEACH CITIES HEALTH DISTRICT

SCHEDULE OF OPEB CONTRIBUTIONS
Year Ended June 30, 2022

Actuarially Determined Contribution (ADC)
Contributions in relation to the ADC
Contribution deficiency (excess)
Covered-employee payroll

Fiscal Year
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
$
130,769 $
121,615 $
122,813 $
58,805 $
60,906 $
55,557 $
57,373
(18,926)
(643,863)
(9,752)
(12,944)
(18,683)
(21,234)
(20,198)
$
111,843 $
(522,248) $
113,061 $
45,861 $
42,223 $
34,323 $
37,175
$

Contributions as a percentage of covered-employee payroll

3,948,380

$

0.48%

5,608,266
11.48%

$

5,906,109
0.17%

$

5,770,423
0.22%

$

5,708,768

$

6,198,359

0.33%

$

6,267,486

0.34%

0.32%

* The fiscal year ended June 30, 2018 was the first year of implementation, therefore information for the period previous to that measurement date is unavailable.
Notes to Schedule:
Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2024 were from the June 30, 2023 actuarial valuation.

Methods and assumptions used to determine contributions:
Actuarial Cost Method
Entry Age Normal, Level % of pay
Amortization Method/Period
Level % of pay
Asset Valuation Method
Market Value
Inflation
2.50%
Payroll Growth
2.75% per annum, in aggregate
Investment Rate of Return
5.75%
- Non-Medicare: 6.50% for 2023 decreasing to an ultimate rate of 3.75% in 2076 and later years
Healthcare cost-trend rates
- Medicare: 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years
Mortality, Retirement,
CalPERS 2000-2019 Experience Study
Disability, Termination
Mortality Improvement

Mortality projected fully generational with Scale MP-2021

*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.

70

BEACH CITIES HEALTH DISTRICT

SCHEDULE OF OPEB CONTRIBUTIONS
Year Ended June 30, 2022
Variance with
Final Budget
Positive
(Negative)

Original
Budget

Final
Budget

Actual

5,024,263
5,002,800
1,789,467
1,735,000
344,930
155,516
855,600

5,024,263
5,002,800
1,789,467
1,735,000
344,930
155,516
855,600

4,425,992
5,024,156
2,056,373
1,745,655
1,373,655
88,742
2,671,737

(598,271)
21,356
266,906
10,655
1,028,725
(66,774)
1,816,137

4,223,972
4,751,854
1,584,269
1,618,389
795,602
368,400
1,980,050

14,907,576

14,907,576

17,386,310

2,478,734

15,322,536

7,395,834
1,372,500
1,885,036
1,914,591
387,246
596,237
184,623
324,651
15,258
90,000
4,327,739

7,395,834
1,372,500
1,885,036
1,914,591
387,246
596,237
184,623
324,651
15,258
90,000
4,327,739

7,450,990
1,257,859
2,120,218
1,743,748
326,138
562,116
187,537
229,134
6,119
61,788
3,060,005

(55,156)
114,641
(235,182)
170,843
61,108
34,121
(2,914)
95,517
9,139
28,212
1,267,734

6,832,167
1,440,055
2,190,355
1,867,551
546,031
500,422
198,092
209,562
8,067
69,090
3,909,241

663,184
78,416

663,184
78,416

781,312
76,199

(118,128)
2,217

720,257
128,310

TOTAL EXPENDITURES

19,235,315

19,235,315

17,863,163

1,372,152

18,619,200

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES

(4,327,739)

(4,327,739)

(476,853)

3,850,886

(3,296,664)

NET CHANGES IN FUND BALANCE

(4,327,739)

(4,327,739)

(476,853)

3,850,886

(3,296,664)

FUND BALANCE AT BEGINNING OF YEAR

27,576,075

27,576,075

27,576,075

23,248,336

23,248,336

27,099,222

REVENUES:
Financing and rental income
related to lease
Property taxes
Program income
Income from limited partnership
Investment earnings
Other revenue
Intergovernmental

$

TOTAL REVENUES
EXPENDITURES:
Current:
Salaries and related expenses
Health programs
Professional fees
Facilities management
Community relations
General and administrative
Human resources
Information services
Cost of goods sold
Other
Capital outlay
Debt service:
Principal retirement
Interest and other fiscal charges

FUND BALANCE AT END OF YEAR

$

3,850,886

2023
Actual

30,872,739
27,576,075

71

BEACH CITIES HEALTH DISTRICT
Notes to the Required Supplementary Information
Year ended June 30, 2024

(1)

Pension Information
Summary of Changes of Benefits or Assumptions
Benefit Changes: There were no changes to benefit terms that applied to all members of the
Public Agency Pool. However, individual employers in the Plan may have provided a benefit
improvement to their employees such as Golden Handshakes, service purchases, and other
prior service costs. Employers that have done so may need to report this information as a
separate liability in their financial statement as CalPERS considers such amount to be
separately financed employer-specific liabilities. These employers should consult with their
auditors. Additionally, the figures above do not include any liability impact that occurred after
the June 30, 2022 valuation date, unless the liability impact is deemed to be material to the
Public Agency Pool.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000
for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and
there is no normal cost surcharge. The impact on the unfunded liability is included in the
pool's differences between expected and actual experience.
Changes of Assumptions: There were no assumption changes in 2023. Effective with the June
30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate
was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return,
CalPERS took into account long-term market return expectations as well as the expected
pension fund cash flows. In addition, demographic assumptions and the price inflation
assumption were changed in accordance with the 2021 CalPERS Experience Study and Review
of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates
June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through
June 30, 2016, and 7.50% for measurement date June 30, 2014.
Employers should refer to CalPERS’ Comprehensive Annual Financial Report for the fiscal year
ended June 30, 2023, which may be accessed on the CalPERS website at www.calpers.ca.gov,
to obtain the required supplementary information for proper financial reporting.
Summary of Actuarial Methods and Assumptions
The actuarial methods and assumptions used to set the actuarially determined contributions
for Fiscal Year 2023-24 were from the June 30, 2022 public agency valuations.

72

BEACH CITIES HEALTH DISTRICT
Notes to Required Supplementary Information
Year ended June 30, 2024
(Continued)
(1)

Pension Information (Continued)

Actuarial Cost Method
Actuarial Assumptions:
Discount Rate

Amortization Method
Assets Valuation Method
Inflation
Salary Growth
Payroll Growth
(2)

Entry Age Actuarial Cost Method
6.80% (net of investment and
administrative expenses)
Varies by date established and
source. May be level dollar or level
percent of pay and may include direct
rate smoothing.
Market value of assets
2.30%
Varies by category, entry age, and
duration of service
2.80%

Budgetary Information
The Board of Directors of the Beach Cities Health District (District) adopts an annual budget
for the General Fund, which provides for the operation of the District. It includes proposed
annual expenditures and estimated annual revenues. The District does not adopt an annual
budget for its Special Revenue Fund. The budget for the General Fund is adopted on a basis
substantially consistent with accounting principles generally accepted in the United States of
America.
The following are expenditures that exceeded appropriations in the General Fund for the year
ended June 30, 2024:
Final
Appropriation
General Fund:
Salaries and related expenses
Professional fees
Total expenditures

Expenditures

in Excess of
Appropriation

$

7,395,834
1,885,036

7,450,990
2,120,218

(55,156)
(235,182)

$

9,280,870

9,571,208

(290,338)

73

Statistical Section

74

Date:

November 8, 2024

To:

Finance Committee

From:

Monica Suua, CFO

Subject:

Discussion and Potential Action Item: Approve BCHD Investment Policy 6110

Every year the District’s Investment Policy 6110 is required by the Policy (section 6110.16) to be
reviewed by the CEO and/or CFO and the Finance Committee annually and subsequently
forwarded to the Board for review and approval. The Policy was last reviewed by this committee
on November 13, 2023.
As there are no Code related changes required at this time, we don’t recommend making any
changes to the Policy.
As an update and for clarity section 6110.18 states that the District portfolio is managed against
the Bank of America Merrill Lynch 1-5 Year U.S. Government/Corporate AAA- A Index as the
benchmark and compared to the portfolio’s sector composition, maturity structure, current
investment strategy, and total return; however, given the District’s liquidity requirements, PFM is
managing the portfolio based on the District cash flow need and most favorable yield availability
rather than at the benchmark.
We recommend revisiting, reviewing, and discussing the benchmark guidelines in future Finance
Committee meetings to determine whether a new benchmark guideline should be implemented
and updated in the Policy.
Please find following this memo the District current 6110 Investment Policy for your review.
The current Policy can be found on the District website: BCHD Investment Policy
Action Item:
Please review and consider recommending the approval of Policy 6110: Investment Policy
requiring no edits by the District Board of Directors at the November 20, 2024, board meeting.

75

POLICY TITLE:
POLICY NUMBER:

INVESTMENT POLICY
6110

COMMITTEE APPROVAL DATE: 11/13/2023
BOARD APPROVAL DATE:
11/15/2023

WRITTEN/REVISED BY: M. SUUA
SUPERSEDES:
11/18/2022

POLICY
6110 It is the policy of the Beach Cities Health District (“District”) to provide guidelines for
the prudent investment of District funds and to maximize the efficiency of the District’s
cash management. The ultimate goal is to enhance the economic status of the District
consistent with the prudent protection of the District’s investments. This investment policy
has been prepared in conformance with all pertinent existing laws of the State of California
including California Government Code Sections 53600, et seq.
Scope
6110.1 This policy covers all funds and investment activities of the District except for (1)
the proceeds of bond issues, which are invested in accordance with provisions of their
specific bond indentures, and (2) funds invested in retirement or deferred compensation
plans. All funds covered by this policy are defined and accounted for in the District’s
audited annual Basic Financial Statements Report. Further, any new funds created shall
be covered by this policy unless specifically excluded by District management and the
Board of Directors. Investments for the District (the “portfolio”) will be made on a pooled
basis including the General Fund, Special Revenue Fund, and any funds subsequently
created.
Prudent Investor Standard
6110.2 The District operates its investment portfolio under the Prudent Investor Standard
(California Government Code Section 53600.3) which states, that “when investing,
reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a
trustee shall act with care, skill, prudence, and diligence under the circumstances then
prevailing, including, but not limited to, the general economic conditions and the
anticipated needs of the District, that a prudent person in a like capacity and familiar with
those matters would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the District.”
6110.3 This standard shall be applied in the context of managing the overall portfolio.
Investment officers, acting in accordance with written procedures and this investment
policy and exercising the above standard of diligence shall be relieved of personal
responsibility for an individual security’s credit risk or market price changes, provided
deviations from expectations are reported in a timely fashion and appropriate action is
taken to control adverse developments.

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Investment Objectives
6110.4 When investing, reinvesting, purchasing, acquiring, exchanging, selling or
managing the District’s funds,
6110.4.1 The primary objective is to safeguard the principal of the funds.
6110.4.2 The secondary objective is to meet the liquidity needs of the District.
6110.4.3 The third objective is to achieve a reasonable market rate of return on
invested funds.
6110.5 It is the policy of the District to invest public funds in a manner to obtain the highest
yield obtainable with the maximum security while meeting the daily cash flow demands of
the District as long as investments meet the criteria established by this policy for safety
and liquidity and conform to all laws governing the investment of District funds.
6110.5.1 Safety of Principal
Safety of principal is the foremost objective of the District. Each investment
transaction shall seek to first ensure that capital losses are avoided, whether they
arise from securities defaults, institution default, broker-dealer default, or erosion of
market value of securities. The District shall mitigate the risk to the principal of
invested funds by limiting credit and interest rate risks. Credit Risk is the risk of loss
due to the failure of a security’s issuer or backer. Interest Rate Risk is the risk that
the market value of the District’s portfolio will fall due to an increase in general
interest rates.
6110.5.1.1 Credit risk will be mitigated by:
6110.5.1.1.1 Limiting investments to only the most creditworthy types of
securities;
6110.5.1.1.2 Pre-qualifying the financial institutions with which the District will
do business; and
6110.5.1.1.3 Diversifying the investment portfolio so that the potential failure of
any one issue or issuer will not place an undue financial burden on the
District.
6110.5.1.2 Interest rate risk will be mitigated by:
6110.5.1.2.1 Structuring the District’s portfolio so that securities mature to meet
the District’s cash requirements for ongoing obligations, thereby
reducing the possible need to sell securities on the open market at a loss
prior to their maturity to meet those requirements; and
6110.5.1.2.2
Investing a portion of the portfolio in shorter-term securities.
6110.5.2 Liquidity
Availability of sufficient cash to pay for current expenditures shall be maintained in
money market funds, local government investment pools that offer daily liquidity,
repurchase agreements, or short-term securities that can easily be converted into
cash because they have secondary markets. The cash management system of the
6110 Page 2 of 19

77

District shall be designed to accurately monitor and forecast expenditures and
revenues to ensure the investment of monies to the fullest extent possible.
6110.5.3 Rates of Return
Yield on investments shall be considered only after the basic requirements of safety
and liquidity have been met. The investment portfolio shall be designed to attain a
market average rate of return throughout economic cycles, taking into account the
District’s risk constraints, the composition and cash flow characteristics of the portfolio,
and applicable laws.
Delegation of Authority
6110.6 Authority to manage District’s investment program is derived from the California
Government Code Section 53600 et. seq. The Board of Directors (the “Board”) is
responsible for the management of the portfolio and shall approve the systems of controls
that regulate the activities of internal staff and external investment advisors. The Board
hereby delegates responsibility for developing and implementing the investment program
to the Chief Executive Officer (or the “CEO”), who shall establish written procedures for
the operation of the investment program consistent with this investment policy. Such
procedures shall authorize the CEO and/or the CFO to execute investment transactions
or to delegate day-to-day investment decision making and execution authority to an
investment advisor. The rights and responsibilities delegated to an investment advisor
must be in a written agreement. The investment advisor shall make all investment
decisions and transactions in accordance with California Government Code and District
policy. No person may engage in an investment transaction except as provided under the
terms of this Policy and the procedures established by the Chief Executive Officer and
approved by the Board of Directors.
Ethics and Conflicts of Interest
6110.7 Officers and employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment
program or which could impair their ability to make impartial investment decisions.
Employees and investment officers shall disclose any material financial interest in
financial institutions that conduct business with this District, and they shall further disclose
any large personal financial / investment positions that could be related to the
performance of the District’s portfolio. Employees and officers shall subordinate their
personal investment preferences to those of the District, particularly with regard to the
timing of transactions and shall avoid transactions that might impair public confidence.
Authorized Financial Dealers and Institutions
6110.8 The CFO will establish and maintain a list of the financial institutions and
broker/dealers authorized to provide investment and depository services to the District,
will perform an annual review of the financial condition and registrations of the qualified
institutions, and will require annual audited financial statements to be on file for each
6110 Page 3 of 19

78

approved institution. The District shall annually send a copy of their current Investment
Policy to all financial institutions and broker/dealers approved to do business with the
District. Receipt of the Investment Policy including confirmation that it has been received
and reviewed by the person(s) handling the District’s account, shall be acknowledged in
writing within thirty (30) days.
6110.8.1
Depositories
In selecting depositories, the creditworthiness of institutions shall be considered,
and the CFO shall conduct a comprehensive review of prospective depositories’
credit characteristics and financial history. Qualifications and minimum
requirements for depositories will be established by the CFO, approved by the
Board of Directors, and provided to any institution seeking to conduct business
with the District. Banks and Savings and Loan Associations seeking to establish
eligibility as a depository for the District’s Collateralized Certificate of Deposits shall
annually submit an audited financial statement which will be reviewed by the CFO
for compliance with the District’s financial criteria.
6110.8.1.1 Any institution meeting the District’s required criteria will be
eligible for placement of public deposits by the District, subject to approval
by the Chief Executive Officer. Un-audited quarterly financial data shall be
reviewed for all institutions on the District’s approved list. Any institution
falling below the District’s established minimum criteria shall be removed
from the approved list, no new deposits may be placed with that institution,
and all funds remaining shall be withdrawn as the deposits mature.
6110.8.2
Brokers and Dealers
To become a broker or dealer qualified to do business with the District, a firm must
respond to the District’s “Broker Dealer Questionnaire” and submit related
documents relative to eligibility. Required documents include a current audited
financial statement, proof of state registration, proof of FINRA registration, and a
certification that the firm has received and reviewed the District’s Investment Policy
and agrees to offer the District only those securities that are authorized by the
Investment Policy. The CFO may establish any additional criteria deemed
appropriate to evaluate and approve any financial services provider. The selection
process for broker-dealers shall be open to both “primary dealers” and
“secondary/regional dealers” that qualify under Securities and Exchange
Commission Rule 15c3-1 (Uniform Net Capital Rule), and the provider’s
representative must be experienced in institutional trading practices and familiar
with the California Government Code as it relates to investments by a public entity.
If a third party investment advisor is authorized to conduct investment transactions
on the District’s behalf, the investment advisor may use its own list of approved
issuers, broker/dealers and financial institutions. The investment advisor’s
approved list must be made available to the District upon request.

6110 Page 4 of 19

79

Authorized and Suitable Investments
6110.9 The District is provided a broad spectrum of eligible investments under California
Government Code Section 53600 et seq. The District may choose to restrict its permitted
investments to a smaller list of securities that more closely fits the District’s cash flow
needs and requirements for liquidity. If a type of investment is added to California
Government Code 53600, it will not be added to the District’s Authorized Investment List
until this policy is amended and approved by the Chief Executive Officer and the Board
of Directors. If a type of investment permitted by the District should be removed from
California Government Code 53600, it will be deemed concurrently removed from the
District’s Authorized Investment List, but existing holdings may be held until they mature
if it is in the best interest of the District and recommended by the CFO and approved by
the Board of Directors.
Credit criteria listed in this Policy refers to the credit rating of the issuing organization at
the time the security is purchased. The District may from time to time be invested in a
security whose rating is downgraded. In the event a rating drops below the minimum
allowed by this Policy, the CFO will review recommend an appropriate plan of action to
the CEO and Board no less frequently than quarterly. If the District has an Investment
Advisor, the Investment Advisor will notify the CFO and recommend a plan of action.
Percentage limits refer to the percentage at the time the security is purchased.

6110 Page 5 of 19

80

6110.9.1 Within the context of these limitations, the following investments are
authorized. No more than 5 percent of the portfolio may be invested in any one
non-governmental issuer regardless of sector. This limitation does not apply to the
following types of securities: U.S. Treasury securities, U.S. Government Agency
securities, obligations of the International Bank for Reconstruction and
Development, the International Finance Corporation, and the Inter-American
Development Bank, money market funds, and government investment pools.
PERMITTED INVESTMENTS/
DEPOSITS
Government Investment Pools
 LAIF (Local Agency Investment
Fund) California State Treasurer’s
Office
 Shares issued by a JPA (LGIP)
Securities of the U.S. Government,
including:
(1) U.S. Treasury and
(2) U.S. Government Agency securities
Registered state warrants or
treasury notes or bonds of the state of
California
Bonds, notes, warrants, or other
evidences of indebtedness of any
local agency within the State of
California
Bonds, notes, warrants, or other
evidences of indebtedness of any of
the other 49 United States in addition
to California
Bankers’ acceptances
Commercial paper

Negotiable certificates of deposit
Time certificates of deposit
Repurchase Agreements
Medium-term notes

MINIMUM CREDIT
REQUIREMENTS*
 No limit

MATURITY
LIMITS**
 N/A

 No maximum limit

 No limit

 N/A

 No % limit

 No limit

 5 years

 No % limit

 No limit

 5 years

 No % limit

 No limit

 5 years

 No % limit

 No limit

 5 years

 No % limit

 No limit

 5 years

 20%
 25%

 “A-1”
 “A-1” or higher or
has debt other
than commercial
paper that is rated
“A” or higher
 “A-1” / “A”
 No limit
 N/A

 180 days
 270 days

 “A”

 5 years

SECTOR LIMITS
 Maximum
permitted by State
Treasurer

 30%
 50%
 20% with Master
Repurchase
Agreement
 30%

 5 years
 2 years
 90 days

6110 Page 6 of 19

81

Money market funds

 20%

Money market account/ passbook
savings / demand deposits
Asset-backed securities*

 No % limit

 20%
Obligations of the International Bank for  30%
Reconstruction and Development, the
International Finance Corporation, and
the Inter-American Development Bank

*

 “AAA” or higher by
at least two
NRSROs1 or must
meet the Advisor
Requirements
(See section (m)
on page 11.)
 N/A

 N/A

“AA”
 “AA”

 5 years
 5 years

 N/A

Minimum credit requirements refer to the credit rating category without regard to “+”,
“-”, or 1, 2, 3 modifiers. The minimum required credit rating category includes the
equivalent ratings from any NRSRO.

** For purposes of compliance with this policy, an investment’s term or remaining
maturity shall be measured from the settlement date to final maturity.
*** Due to the complexity of these securities, asset-backed securities may only be
purchased on the District’s behalf by a registered investment advisor. The investment
advisor must independently review and approve each asset-backed security to be
purchased in the District’s portfolio. The percentage limits for this investment type do
not apply to securities issued or guaranteed by the U.S. Government or a federal
agency.
6110.9.1.2 One of the purposes of this Investment Policy is to define which
investments are permitted. If a type of security is not specifically authorized by this
policy, it is not a permitted investment.
6110.10 The following descriptions of authorized investments are included here to assist
in the administration of this policy.
6110.10.1 Local Agency Investment Fund (LAIF)
The Local Agency Investment Fund (LAIF) is a special fund in the California State
Treasury created and governed pursuant to Government Code Sections 16429.1
et seq. This law permits the District with the consent of the Board of Directors, to
remit money not required for the District’s immediate need, to the State Treasurer
for deposit in this special fund for the purpose of investment. Funds may be
withdrawn on one same day notice if notice is given by 10 a.m. The fees charged
by LAIF are limited by statute (Legal Authority – Government Code Section
16429.1)
6110.10.2
Shares Issued by a JPA (LGIP)
Shares of beneficial interest issued by a joint powers authority organized pursuant
to Government Code Section 6509.7 that invests in the securities and obligations
6110 Page 7 of 19

82

authorized in subdivisions (a) to (q) of Government Code Section 53601, inclusive.
(Legal Authority – Government Code Section 53601 (p))
1 An NRSRO is defined as a “Nationally Recognized Statistical Rating Organization”.

6110 Page 8 of 19

83

Each share shall represent an equal proportional interest in the underlying pool of
securities owned by the joint powers authority. To be eligible under this section,
the joint powers authority issuing the shares shall have retained an investment
adviser that meets all of the following criteria:
6110.10.2.1The adviser is registered or exempt from registration with the
Securities and Exchange Commission.
6110.10.2.2 The adviser has not less than five years of experience investing in
the securities and obligations authorized in subdivisions (a) to (q) Government
Code Section 53601, inclusive.
6110.10.2.2 The adviser has assets under management in excess of five
hundred million dollars ($500,000,000).
6110.10.3
Securities of the U.S. Government including U.S. Treasury and
U.S. Government Agencies and Instrumentalities
These obligations can be classified either as “Treasuries” or “Agencies.”
Treasury securities (“Treasuries”) are obligations of the United States Treasury
backed by the “full faith and credit” of the federal government and can be of three
types: bills, notes, and bonds. (Legal Authority- Government Code Sections
53601(b))
The District can invest in federal agency or United States government-sponsored
enterprise obligations, participations, or other instruments, including those issued
by or fully guaranteed as to principal and interest by federal agencies or United
States government-sponsored enterprises. The maximum investment maturity is
restricted to 5 years. (Legal Authority – Government Code Sections 53601 (f))
6110.10.4 Registered State warrants or Treasury Notes or Bonds of the State
of California
These include bonds payable solely out of the revenues from a revenue-producing
property owned, controlled, or operated by the state or by a department, board,
agency, or authority of the state. The maximum investment maturity is restricted to
5 years. (Legal Authority – Government Code Sections 53601 (c).
6110.10.5 Bonds, Notes, Warrants, or Other Evidences of Indebtedness of
Any Local Agency within the State of California
These include bonds payable solely out of the revenues from a revenue-producing
property owned, controlled or operated by a California local agency, or by a
department, board, agency or authority of such a local agency. The maximum
investment maturity is restricted to 5 years. (Legal Authority-Government Code
Sections 53601 (d)).

6110 Page 9 of 19

84

6110.10.6 Bonds, Notes, Warrants, or Other Evidences of Indebtedness of
any of the other 49 United States in addition to California
These include bonds payable solely out of the revenues from a revenue-producing
property owned, controlled, or operated by a state or by a department, board,
agency, or authority of any of the other 49 United States, in addition to California.
The maximum investment maturity is restricted to 5 years. (Legal Authority –
Government Code Sections 53601 (d))
6110.10.7 Bankers Acceptances
The District may invest in bankers’ acceptances, which are bills of exchange or
time drafts that are drawn on and accepted by a commercial bank. To be eligible
for investment by the District, bankers’ acceptances must carry a minimum rating
of "A" or “A-1” by a nationally recognized statistical rating organization (“NRSRO”).
The maximum investment maturity will be restricted to 180 days. Purchases of
bankers’ acceptances shall not exceed 20 percent of the portfolio. (Legal AuthorityGovernment Code Sections 53601 (g).
6110.10.8 Commercial Paper
Commercial paper is issued by leading industrial and financial firms to raise
working capital. The District shall only buy commercial paper of “prime” quality of
the highest ranking or of the highest letter and numerical rating by an NRSRO.
Eligible paper shall also be further limited to issuing corporations that meet all of
the following conditions in either paragraph 6110.10.8.1 or paragraph 6110.10.8.2:
6110.10.8.1 The entity meets the following criteria: (i) is organized and
operating within the United States as a general corporation, (ii) has total
assets in excess of five hundred million dollars ($500,000,000), and (iii) has
debt other than commercial paper, is any, that is rated in a rating category
of “A” or its equivalent or higher by an NRSRO.
6110.10.8.2 The entity meets the following criteria: (i) is organized within
the United States as a special purpose corporation, trust, or limited liability
company, (ii) has program wide credit enhancements including, but not
limited to, over collateralization, letters of credit, or surety bond, and (iii) has
commercial paper that is rated in a rating category of “A-1” or higher, or the
equivalent, by an NRSRO.
Purchases of eligible commercial paper shall not exceed 270 days to maturity.
Purchases of commercial paper shall not exceed 25 percent of the portfolio. (Legal
Authority – Government Code Section 53601 (h))

6110 Page 10 of 19

85

6110.10.9 Negotiable Certificates of Deposit
The District may invest in negotiable certificates of deposit issued by a nationally
or state-chartered bank, a savings association or a federal association, a state or
federal credit union or by a federally licensed or state-licensed branch of a foreign
bank. Eligible investments shall be rated in a rating category of “A” or “A-1” or its
equivalent or better by an NRSRO. The maximum investment maturity is restricted
to 5 years. Purchases of negotiable Certificates of Deposit shall not exceed 30
percent of the portfolio. (Legal Authority – Government Code Section 53601 (i).
No deposits shall be made at any time in negotiable CDs issued by a state or
federal credit union if a member of the District’s Board or staff serves on the board
of directors or any committee appointed by the board of directors of the credit
union.
6110.10.10 Time Certificates of Deposit
The District may invest in non-negotiable, FDIC-insured, and collateralized
certificates of deposits (“CDs”) in a state or national bank, savings association or
federal association, federal or state credit union in the State of California. In
accordance with California Government Code Section 53635.2, to be eligible to
receive District deposits, a financial institution must have received an overall rating
of not less than “satisfactory” in its most recent evaluation by the appropriate
federal financial supervisory agency of its record of meeting the credit needs of
California communities. A written depository contract is required with all institutions
that hold District deposits. Deposits larger than the current level of FDIC insurance
must be collateralized by securities with a market value of at least 110 percent of
all uninsured deposits with the institution. Acceptable collateral is governed by
California Government Code Section 53651. Real estate mortgages are not
considered acceptable collateral by the District, even though they are permitted in
Government Code Section 53651(m). All banks are required to provide the District
with a statement of pooled collateral. This report will state that they are meeting
the 110 percent collateral rule (Government Code Section 53652(a)), a listing of
all collateral with location and market value, plus an accountability of the total
amount of deposits secured by the pool.
No deposits shall be made at any time in CDs issued by a state or federal credit
union if a member of the District’s Board or staff serves on the board of directors
or any committee appointed by the board of directors of the credit union. In
accordance with Government Code Section 53638, any deposit shall not exceed
that total shareholder’s equity of any depository bank, nor shall the deposit exceed
the total net worth of any institution. Maximum maturity is restricted to 2 years.
Purchases of time certificates of deposit shall not exceed 50 percent of the
portfolio.
6110.10.11 Repurchase Agreements
The District may invest in overnight and term repurchase agreements with Primary
Dealers of the Federal Reserve Bank of New York rated in a rating category of “A”
or its equivalent or better by an NRSRO with which the District has entered into a
6110 Page 11 of 19

86

Master Repurchase Agreement. This agreement will be modeled after the Public
Securities Associations Master Repurchase Agreement. The maximum maturity
will be restricted to 90 days. Purchases of repurchase agreements shall not exceed
20 percent of the portfolio. (Legal Authority—Government Code Section 53601(j))
All collateral used to secure this type of transaction is to be delivered to a third
party prior to release of funds. The third party will have an account in the name of
the Beach Cities Health District. The market value of securities used as collateral
for repurchase agreements shall be monitored on a daily basis and will not be
permitted to fall below a minimum of 102 percent of the value of the repurchase
agreement Collateral shall not have maturities in excess of 5 years The right of
substitution will be granted, provided that permissible collateral is maintained.
In order to conform with provisions of the Federal Bankruptcy Code which provides
for the liquidation of securities held as collateral for repurchase agreements, the
only securities acceptable as collateral shall be securities that are direct obligations
of and guaranteed by the United States Government and Agency securities as
permitted under this policy. The District will maintain a first perfected security
interest in the securities subject to the repurchase agreement and shall have a
contractual right to liquidation of purchased securities upon the bankruptcy,
insolvency or other default of the counter party.
6110.10.12 Medium Term Notes
Medium-term notes are obligations of a domestic corporation or depository
institution. The maximum investment maturity is restricted to 5 years. Eligible
investments shall be rated in a rating category of “A” or its equivalent or better by
an NRSRO. Purchases of medium-term notes shall not exceed 30 percent of the
portfolio. (Legal Authority-Government Code Sections 53601(k)).
6110.10.13 Money Market Funds
Shares of beneficial interest issued by diversified management companies that are
money market funds registered with the Securities and Exchange Commission
under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.) and
that invest in securities and obligations defined as permitted investments for local
agencies as described in subsections (a) through (k), inclusive, and (m) through
(q), inclusive, of Government Code Section 53601 et seq.
To be eligible for investment pursuant to this subdivision these companies shall
either: (1) attain the highest ranking letter or numerical rating provided by not less
than two NRSROs or (2) have an investment advisor registered or exempt from
registration with the Securities and Exchange Commission with not less than five
years' experience managing money market mutual funds and with assets under
management in excess of $500,000,000. Purchases of money market funds shall
not exceed 20 percent of the portfolio. (Legal Authority – Government Code
Section 53601 (l))
6110 Page 12 of 19

87

6110.10.14 Money Market Accounts / Passbook Savings / Demand Deposits
These are authorized by Government Code Section 53637 and must be insured
by the FDIC or collateralized as required by California Government Code. (Legal
Authority – Government Code Section 53637)
6110.10.15 Asset-Backed Securities
This category includes mortgage passthrough securities, collateralized mortgage
obligations, mortgage-backed or other pay-through bonds, equipment leasebacked certificates, consumer receivable passthrough certificates, or consumer
receivable-backed bonds. Securities eligible for investment shall be rated in a
rating category of “AA” or its equivalent or better by at least one NRSRO. Further,
the asset-backed securities described in this sub-section may only be purchased
on the District’s behalf by a registered investment advisor. The investment advisor
must independently review and approve each asset-backed security to be
purchased in the District’s portfolio. The maximum remaining investment maturity is
restricted to 5 years or less. Purchases of asset-backed securities shall not exceed
20 percent of the portfolio. (Legal Authority – Government Code Section 53601 (o))
6110.10.16 Obligations of the International Bank for Reconstruction and
Development, the International Finance Corporation, and the InterAmerican Development Bank
United States dollar denominated senior unsecured unsubordinated obligations
issued or unconditionally guaranteed by the International Bank for Reconstruction
and Development (IBRD), International Finance Corporation (IFC), or InterAmerican Development Bank (IADB), which are eligible for purchase and sale
within the United States. Investments shall be rated “AA”, its equivalent, or better
by at least one NRSRO. The maximum investment maturity is restricted to 5 years.
Purchases of these types of obligations may not exceed 30 percent of the portfolio.
(Legal Authority – Government Code Section 53601 (q))
Investment Pools
6110.11 A thorough investigation of any investment pool, money market or mutual fund
is required prior to investing and on a continual basis. The investigation will, at a minimum,
obtain the following information:
6110.11.1 A description of interest calculations and how it is distributed, and how
gains and losses are distributed.
6110.11.2 A description of how securities are safeguarded (including the
settlement process) and how often the securities are marked to market and how
often an audit is conducted.
6110.11.3 A description of who may invest in the program, how often, what size
deposits and withdrawals are permitted.
6110.11.4 A schedule for receiving statements and portfolio listings.
6110 Page 13 of 19

88

6110.11.5 Does the pool/fund maintain a reserve or retain earnings, or is all
income after expenses distributed to participants?
6110.11.6 A fee schedule that discloses when and how fees are assessed.
6110.11.7 Determining if the pool or fund is eligible for bond proceeds and/or will
it accept such proceeds.
The purpose of this investigation is to determine the suitability of a pool or fund and
evaluate the risk of placing funds with that pool or fund.
Collateralization
6110.12 Repurchase Agreements shall be collateralized in accordance with terms
specified in the Master Repurchase Agreement. The valuation of collateral securing a
Repurchase Agreement will be verified and monitored on a daily basis to ensure a
minimum of 102% of the value of the transaction being held by the District’s depository
agent. All collateral used to secure this type of transaction is to be delivered to a third
party prior to release of funds. The third party will have an account in the name of the
Beach Cities Health District.
Safekeeping and Custody
6110.13 All deliverable securities owned by the District shall be held in safekeeping by a
third party bank trust department acting as agent for the District under the terms of a
custody agreement executed by the bank and the District. All deliverable securities will
be received and delivered using standard delivery versus payment (DVP)
procedures. The third party bank trustee agreement must comply with Section 53608 of
the California Government Code. No outside broker/dealer or advisor may have access
to District funds, accounts, or investments and any transfer of funds must be approved by
the Chief Executive Officer or his/her designee.
Diversification and Risk
6110.14 The District recognizes that investment risks can result from issuer defaults,
market price changes, or various technical complications leading to temporary illiquidity.
To minimize the District’s exposure to these types of risk, the portfolio should be
diversified among several types of institutions, instruments, and maturities. The Finance
Director shall minimize default risk by prudently selecting only instruments and
institutions, which at the time of placement have been evaluated for their financial viability
and compliance with this policy. No individual investment transaction shall be undertaken
that jeopardizes the total capital position of the overall portfolio. Risk shall also be
managed by subscribing to a portfolio management philosophy that helps to control
market and interest rate risk by matching investments with cash flow requirements. In the
event of a default by a specific issuer, the Finance Director shall evaluate the liquidation
of securities having comparable credit risks. Diversification strategies shall be established
and reviewed quarterly by the Chief Executive Officer.
6110 Page 14 of 19

89

Maximum Maturities
6110.15 Every effort will be made to match investment maturities to cash flow needs.
Matching maturities with cash flow dates will reduce the need to sell securities prior to
maturity, thus reducing market risk. The maximum average duration of the District’s
portfolio may not exceed 3 years. Unless matched to a specific requirement and approved
by the Board of Directors, no investment may be made with a maturity greater than 5
years.
Internal Control and Review
6110.16 The Chief Executive Officer and/or CFO will review this Beach Cities Health
District Investment Policy annually and present the Investment Policy and any
recommended changes to the Finance Committee. The Finance Committee will review
the staff’s recommendations and present the Investment Policy and the Committee’s
recommendations to the Board of Directors.
6110.17 The external auditors shall review annually the investments and general activities
associated with the investment program to ensure compliance with this Investment Policy.
This review will provide internal control by assuring compliance with policies and
procedures established by this Investment Policy.
Performance Standards
6110.18 The investment portfolio will be managed in accordance with the standards
established within this Investment Policy and should obtain a market rate of return
throughout budgetary and economic cycles, taking into account the District’s investment
risk constraints, cash flow needs, and maturities of the investments. The basis to
determine whether market yields are being achieved shall be the total return of the
portfolio. The Bank of America Merrill Lynch 1-5 Year U.S. Government/Corporate AAAA Index is the benchmark that will be compared to the portfolio’s sector composition,
maturity structure, current investment strategy, and total return. The CFO will periodically
review the District’s portfolio performance against the benchmark.
Reporting
6110.19 The Chief Executive Officer or his/her designee will submit to the Board of
Directors a monthly report of investment transactions and a quarterly investment report,
which will be submitted within 30 days of the end of each calendar quarter. This report
shall include all items listed in Section 53646(b) of the Government Code.

6110 Page 15 of 19

90

6110.19.1 A list of individual securities held at the end of the reporting period.
6110.19.2 Market value, book value, par value, cost basis, and maturity date of
all investments.
6110.19.3 Dollar weighted yield to maturity of the District’s investments.
6110.19.4 Statement of compliance of the District’s Investment Policy with
California Government Code Section 53601 et seq.
6110.19.5 Statement as to ability to meet all scheduled expenditure requirements
for the next six months.

6110 Page 16 of 19

91

Glossary of Investment Terms
Because the Investment Policy of the Beach Cities Health District is available to the public,
related terminology is included as a part of this policy.

Bankers’ Acceptance - A high-quality, short-term money market instrument used to
finance international trade. There has never been an instance of a failure to pay a
banker’s acceptance in full at its maturity date.
Bond - A financial obligation for which the issuer promises to pay the bondholder a
specified stream of future cash flows, including periodic interest payments and a principal
repayment.
Book Value - The value at which a debt security is shown on the holder's balance sheet.
Book value is acquisition cost less amortization of premium or accretion of discount.
Broker - Someone who brings buyers and sellers together and is compensated for his/her
service.
Certificate of Deposit - A deposit of funds for a specified period of time that earns interest
at a specified rate. Commonly known as “CDs.” Maturities range from a few weeks to
several years. Interest rates are set by the competitive market place.
Collateral - Securities, evidence of deposit or pledges to secure repayment of a loan.
Also refers to securities pledged by a bank to secure deposit of public moneys.
Commercial Paper - Short-term, negotiable unsecured promissory notes of corporations.
Custodian - A bank or other financial institution that keeps custody of stock certificates
and other assets.
Delivery vs. Payment (DVP) - Delivery of securities with a simultaneous exchange of
money for the securities.
Diversification - Dividing investment funds among a variety of securities offering
independent returns and risk profiles.
Federal Deposit Insurance Corporation (FDIC) - Insurance provided to customers of a
subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.
Interest Rate Risk - The risk associated with declines or rises in interest rates that cause
an investment in a fixed-income security to increase or decrease in value.

6110 Page 17 of 19

92

Investment Company Act of 1940 - Federal legislation which sets the standards by
which investment companies, such as mutual funds, are regulated in the areas of
advertising, promotion, performance reporting requirements, and securities valuations.
Investment Policy - A concise and clear statement of the objectives and parameters
formulated by an investor or investment manager for a portfolio of investment securities.
Liquidity - An asset that can easily and rapidly be converted into cash without significant
loss of value.
Local Agency Investment Fund (LAIF) - A pooled investment vehicle for local agencies
in California sponsored by the State of California and administered by the State Treasurer.
Market Risk - The risk that the value of a security will rise or decline as a result of changes
in market conditions.
Market Value - Current market price of a security. The price at which a security is trading
and could presumably be purchased or sold.
Maturity - The date upon which the principal or stated value of an investment becomes
due and payable.
Money Market Fund - Mutual funds that invest solely in money market instruments
(short-term debt instruments, such as Treasury bills, commercial paper, bankers’
acceptances, repos, and federal funds).
Negotiable Certificate of Deposit - A large denomination certificate of deposit which
can be sold in the open market prior to maturity.
Note - A written promise to pay a specified amount to a certain entity on demand or on a
specified date.
Par Value - The amount of principal that must be paid at maturity. Also referred to as the
face amount of a bond, normally quoted in $1,000 increments per bond.
Portfolio - Combined holding of more than one stock, bond, commodity, real estate
investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk
by diversification.
Primary Dealer - A group of government securities dealers that submit daily reports of
market activity and security positions held to the Federal Reserve Bank of New York and
are subject to its informal oversight.
Principal - The face value or par value of a debt instrument, or the amount of capital
invested in a given security.

6110 Page 18 of 19

93

Prudent Investor Standard - A standard of conduct where a person acts with care, skill,
prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging,
selling, and managing funds. The test of whether the standard is being met is if a prudent
person acting in a similar situation would engage in similar conduct to ensure that
investments safeguard principal and maintain liquidity.
Purchase Date - The date in which a security is purchased for settlement on that or a
later date.
Rate of Return - The yield obtainable on a security based on its purchase price or its
current market price. This may be the amortized yield to maturity on a bond or the current
income return.
Repurchase Agreement (REPO) - A transaction where the seller agrees to buy back
from the buyer the securities at an agreed upon price on demand or at a specified date.
Risk - Degree of uncertainty of return on an asset.
Safekeeping - Holding of assets (e.g., securities) by a financial institution.
Safekeeping Service - Offers storage and protection of assets; provided by an institution
serving as an agent.
Secondary Market - A market made for the purchase and sale of outstanding issues
following the initial distribution.
Securities and Exchange Commission (SEC) - The federal regulatory agency
responsible for supervising and regulating the securities industry.
Settlement Date - The date on which a trade is cleared by delivery of securities against
funds.
Shares issued by a JPA (LGIP) - A pooled investment vehicle sponsored by a local
Agency or a group of local agencies for use by other local agencies.
Time Certificate of Deposit - A non-negotiable certificate of deposit that cannot be sold
prior to maturity.
Total Return - The sum of all investment income plus changes in the capital value of the
portfolio.
Treasury Bills (also known as T-bills) - U.S. Treasury Bills, which are short-term, direct
obligations of the U.S. Government issued with original maturities of 13 weeks, 26 weeks
and 52 weeks (3-month, 6-month, 1-year); sold in minimum amounts of $10,000 in
multiples of $5,000 above the minimum. Issued in book entry form only. T-bills are sold
on a discount basis.
6110 Page 19 of 19

94

Treasury Bonds (also known as T-bonds) - U.S. Treasury long-term obligations, direct
obligations of the U.S. Government, generally mature in 10 years or more.
U.S. Government Agencies - The term used to describe the instruments issued by
various U.S. Government Agencies most of which are secured only by the credit
worthiness of the particular Agency.
U.S. Treasury Obligations - Debt obligations of the United States Government sold by
the Treasury Department in the forms of Bills, Notes, and Bonds. Bills are short-term
obligations that mature in 1 year or less and are sold on the basis of a rate of discount.
Notes are obligations that mature between 1 year and 10 years. Bonds are long-term
obligations that generally mature in 10 years or more.
Yield - The rate of annual income return on an investment, expressed as a percentage.
It is obtained by dividing the current dollar income by the current market price of the
security.
Yield to Maturity - The rate of income return on an investment minus any premium or
plus any discount, with the adjustment spread over the period from the date of purchase
to the date of maturity of the bond, expressed as a percentage.

6110 Page 20 of 19

95

Beach Cities Health District

Investment Performance Review
For the Quarter Ended September 30, 2024

Client Management Team

PFM Asset Management LLC

Monique Spyke, Managing Director
Robert Montoya, Relationship Manager
Richard Babbe, CCM, Senior Managing Consultant

633 W 5th St., 25th Floor
Los Angeles, CA 90071
949-230-6896

213 Market Street
Harrisburg, PA 17101-2141
717-232-2723

NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE

96

For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public

Market Update

97

© PFM Asset Management LLC | pfmam.com

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT

Market
Market Update
Market Update

Current Market Themes
▸ The U.S. economy is characterized by:
▹ A labor market that reached better balance and supports consumer activity
▹ Inflation that has made meaningful progress towards the Federal Reserve’s (Fed) 2%
target, although shelter costs remain a headwind
▹ Resilient economic growth and consumer spending that support the ‘soft landing’ scenario

▸ Fed begins the easing cycle
▹ The Fed cut the federal funds target rate by 50 basis points (bps) to 4.75% - 5.00% at its
September FOMC meeting
▹ Fed officials note they have gained greater confidence the risks to their dual mandate are
“roughly” in balance
▹ The Fed’s September “dot plot” implies 50 bps of additional cuts in 2024 and 100 bps
through 2025

▸ Treasury yields continued their descent
▹ Yields on maturities between 3 months and 10 years fell 62-112 bps during the 3rd quarter
▹ The yield curve began to disinvert in the 3rd quarter as the spread between the 2-year and
10-year Treasury reached positive territory for the first time in over 2 years
▹ Despite intra-quarter spread widening, yield spreads across most credit sectors were
range bound at tight levels, reflecting the strength of the economy

Source: Bloomberg Finance L.P., as of September 30, 2024.

98

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1

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Inflation Trends Lower
Fed Chair Powell: “[H]ousing inflation is the … one piece that is kind of dragging a bit … it’s been slower than we
expected”

Consumer Price Index (CPI)
Top-Line Contributions, Year-over-Year Changes
Shelter

CPI Ex-Shelter

Headline Shelter YoY%

Headline CPI YoY%

10%
9%

Shelter Inflation increased
5.2% while CPI Ex-Shelter
increased 1.0% (YoY)

8%
7%

Aug-24
5.2%

6%
5%

The shelter
component of CPI
continues to
remain outsized
accounting for
74% of the
increase in the
headline figure

4%

Aug-24
2.5%

3%
2%
1%
0%
Aug-21

Dec-21

Apr-22

Aug-22

Dec-22

Apr-23

Aug-23

Dec-23

Apr-24

Aug-24

Source: Federal Reserve Chair Jerome Powell Press Conference as of September 18, 2024; Bureau of Labor Statistics and Bloomberg Finance L.P., as of August 2024.

99

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pfmam.com

2

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Labor Market Moves Into Better Balance
Fed Chair Powell: “…labor market conditions have cooled off by any measure … [but] the level of those conditions is
actually pretty close to what I would call maximum employment”
Monthly Change In
Nonfarm Payrolls
500

Nonfarm Payrolls

Unemployment Rate
5%

3-month Moving Average

450

400

350
Sept-24
4.1%

Thousands

300
Sept-24
254
4%

250

200

150

100

50

0
Sep-22

Sep-23

Sep-24

3%
Sep-22

Sep-23

Sep-24

Source: Federal Reserve Chair Jerome Powell Press Conference as of September 18, 2024; Bureau of Labor Statistics and Bloomberg Finance L.P., as of September 2024. Data is seasonally adjusted.

100

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pfmam.com
© PFM
PFM Asset
Asset Management LLC | pfmam.com

3

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Inflation and Labor Market Conditions Leave the Consumer Well-Positioned
The “Misery Index” is a measure of economic distress and is calculated as the sum of CPI and the
Unemployment Rate. The Fed’s long-run estimate of full employment at 4 - 5% and an inflation target of 2% would
produce a Misery Index reading of 6 - 7%.

Misery Index
CPI Inflation + Unemployment Rate
18%

Apr-2020
14.8% Unemployment

16%
Nov-2010
9.8% Unemployment
Jun-2022
9.1% Inflation

14%
12%
10%

2000-2003
Driver: Unemployment creeps
higher and peaks at 6.3% in June
2003

Oct-2019
Historically Low
Unemployment and
Inflation

8%
Sept-2024
6.7%

6%
4%
Sep-94

Sep-97

Sep-00

Sep-03

Sep-06

Sep-09

Sep-12

Sep-15

Sep-18

Sep-21

Sep-24

Source: Bloomberg Finance L.P., as of September 2024.

101

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pfmam.com

4

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Consumer Activity Remains Solid
Fed Chair Powell: “…if you look at the growth in economic activity data—the [September] retail sales data [and]
second quarter GDP—all of this indicates an economy that is still growing at a solid pace.”

U.S. Real Personal Consumption Expenditure

U.S. GDP Forecasts
Annualized Rate
Actual

Range

Median of Forecasts
$17,000

5.0%
4.5%

Personal Consumption
is the main driver of
GDP and accounts for
69% of overall GDP

$16,000

4.4%
4.0%

$15,000
Billions

3.5%
3.2%

3.0%

3.0%
2.5%

Pre-pandemic
trend

$14,000

2.0%
1.8%

2.0%

$13,000
1.4%

1.5%

1.6%

1.0%

$12,000

0.5%
$11,000

0.0%
Q3 '23

Q4 '23

Q1 '24

Q2 '24

Q3 '24

Q4 '24

2025

2008

2010

2012

2014

2016

2018

2020

2022

2024

Source: Federal Reserve Chair Jerome Powell Press Conference as of September 18, 2024; (Left) Bureau of Economic Analysis and Bloomberg Finance L.P. as of September 2024. (Right) U.S. Census
Bureau and Bloomberg Finance L.P., as of August 2024.

102

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5

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

The Fed Begins the Cutting Cycle With 50bps
Fed Chair Powell: “[I]f we’d have gotten the July [jobs] report before the [July FOMC] meeting would we have cut,
well we might have.”
Federal Funds Rate
Fed Funds Upper Bound

Market Implied Fed Fund Rates

Median FOMC Projections

Average Cutting Cycle

6%

5%

Dec-22
CPI Inflation
6.5%

Dec-23
CPI Inflation
3.4%

4%

Aug-24
CPI Inflation
2.5%

3%
Dec-21
CPI Inflation
2%
7.0%

1%

0%
2021

2022

2023

2024

2025

Source: Federal Reserve Chair Jerome Powell Press Conference as of September 18, 2024; Average Cutting Cycle represents the average change in the Fed Funds Rate for the first 10 months of a cutting
cycle back to 1988. Market Implied Fed Funds as of September 30, 2024. Bloomberg Finance L.P. CPI inflation and Nonfarm payrolls from Bureau of Labor Statistics and Bloomberg Finance L.P.

103

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6

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Fed’s Updated Summary of Economic Projections
Fed Chair Powell: “These median projections are lower than in June, consistent with projections for lower inflation
and higher unemployment, as well as the change to balance of risks.”
Change in Real GDP

4%

June Projections

Unemployment Rate

6%

Sept Projections

5%
3%

June Projections
4.4%

4.4%

Sept Projections
4.3%

4.2%

4.2%

4%
2.0%

2.0%

2.0%

2.0%

2%

1.8%

3%
2%

1%

1%
0%
2024

2025

2026

2027

Longer
Run

0%
2024

2025

PCE Inflation
4%

June Projections

2027

Longer
Run

Federal Funds Rate
June Projections

Sept Projections

4%

Sept Projections

6%

3%
3%

2026

2.3%

5%

2.1%

2.0%

2.0%

2.0%

4.4%

4%

3.4%

2%
3%

2%

2.9%

2.9%

2.8%

2%

1%
1%

1%

0%

0%
2024

2025

2026

2027

Longer
Run

2024

2025

2026

2027

Longer
Run

Source: Federal Reserve Chair Jerome Powell Press Conference; Federal Reserve. As of September 2024.

104

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7

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

U.S. Treasury Yields Fall as the Yield Curve Begins to Disinvert
U.S. Treasury Yield Curve
6.00%

5.50%

5.00%

Yield

4.64%

4.50%
4.10%

4.00%
3.76%
3.63%
3.53%

3.50%

1 Year Range

3.60%
September 30, 2024
June 30, 2024

3.00%
3mo

2yr

5yr

7yr

10yr

20yr

30yr

Maturity
Source: Bloomberg Finance L.P., as of September 30, 2024

105

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8

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Factors to Consider for 6-12 Months
Monetary Policy (Global):

Economic Growth (Global):

Inflation (U.S.):

• The Fed has begun its easing cycle with a 50 basis
point (bp) cut. The FOMC’s September median “dot
plot” projection suggests an additional 50 bps in rate
cuts by the end of the year “if the economy performs
as expected”. The projections also calls for an
additional full percentage point of cuts in 2025.

• U.S. economic growth remains strong reflecting a
consumer who continues to spend at elevated
levels.

• Inflation continues its trend lower but has been
buoyed by stubborn housing costs.

• Economic growth outside the U.S. remains mixed.

• The broad-based inflation cooling helped fuel the
Fed’s decision to cut by 50 bps but policy makers
note they are not declaring victory on price stability.

• The global easing cycle is underway with nearly all
major central banks (excluding the Bank of Japan)
completing multiple rate cuts.

• China has moved forward with a package of
stimulus measures aimed to boost growth. The
country remains poised to take additional swift
action should it be deemed necessary.

Financial Conditions (U.S.):

Consumer Spending (U.S.):

Labor Markets:

• The continuation of stable market measures, such
as narrow corporate yield spreads, record equity
index levels and low volatility, reflect economic
confidence.

• The consumer continues to spend and support
economic strength. Upward revisions to the
personal savings rate paint the consumer in better
light than previously thought but the trend of
consumers dipping into savings continues.

• The labor market continues to moderate from
extremely strong levels seen in prior quarters. The
recent downward revisions to nonfarm payrolls
through March 2024 further emphasized the
cooling.

• Moderation in the pace of overall spending is
expected given slowing wage growth and cooling
labor market conditions.

• Other labor metrics remain well positioned such as
the layoffs and discharge rate pointing towards
moderation rather than deterioration.

• We remain focused on the cooling labor market and
effects this might have on the consumer as potential
catalysts for a broader slow down, but that is not our
base case expectation.

Current outlook

Outlook one quarter ago

Negative

Slightly
Negative

Neutral

Slightly
Positive

Positive

Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg and FactSet. The views expressed
within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution (9/30/2024) and are subject to change. Information is obtained from sources
generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability.

106

PFM Asset Management LLC

© PFM Asset Management LLC || pfmam.com
pfmam.com

9

Portfolio Review

107

© PFM Asset Management LLC | pfmam.com

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Snapshot

Portfolio Snapshot¹
Sector Allocation

Portfolio Statistics
$12,172,755.32

Total Market Value
Managed Account Sub-Total

$11,608,364.14

Accrued Interest

$21,193.82

Cash/Pool

U.S. Treasury | 43%
Corporate | 19%
Joint Powers Authority | 18%
Federal Agency | 12%
Municipal | 5%
Agency CMBS | 1%
ABS | 1%

$2,679,866.06

1.11 years

Portfolio Effective Duration
Yield At Cost

1.34%

Yield At Market

4.18%
AA

Portfolio Credit Quality

Credit Quality - S&P

Duration Distribution
Portf olio

AAA | 1%
AAAm | 18%
AA+ | 59%
AA | 8%
AA- | 2%
A+ | 4%
A | 4%
A- | 1%
BBB+ | 2%
Not Rated | 2%

60%

51%
44%

40%
20%
5%

0%
0-1 Yr

1-2 Yrs

2-3 Yrs

1. Total market value includes accrued interest and balances invested in CAMP, as of September 30, 2024.
Yield and duration calculations exclude balances invested in CAMP.
An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.

108

© PFM Asset Management LLC | pfmam.com

10

For the Quarter
30,
2024
For theEnded
QuarterSeptember
Ended June
30,
2022
Sector
Analytics
Market
Update

BEACH CITIES HEALTH DISTRICT

Sector Allocation Analytics

Treasury - $5,050,263

41.5%

Agency - $1,387,185

11.4%

Agency CMBS - $155,631

1.3%

Municipal - $553,747

4.5%

Asset-Backed - $147,646

1.2%

Corporate - $2,198,418

18.1%

CAMP - $2,136,669

17.6%

MMF - $543,197

4.5%
0%

10%

20%

30%

40%

50%

Portfolio Allocation

60%

70%

80%

90%

100%

Sector Limits for Analysis

For informational/analytical purposes only and is not provided for compliance assurance. Includes accrued interest.
*Sector Limit for Analysis is as derived from our interpretation of your most recent Investment Policy as provided.

PFM Asset Management LLC

© PFM Asset Management LLC | pfmam.com

11109

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Compliance

Certificate of Compliance

During the reporting period for the quarter ended September 30, 2024, the account(s) managed by PFM Asset Management
("PFMAM") were in compliance with the applicable investment policy and guidelines as furnished to PFMAM.
Acknowledged : PFM Asset Management LLC

Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Financial LP Asset and Investment Management ("AIM").

110

© PFM Asset Management LLC | pfmam.com

12

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Activity

Portfolio Activity
Net Activity by Sector
($ millions)
Sector

Agency CMBS Agency CMBS

ABS ABS

Net Activity

Agency CMBS

($14,582)

ABS

($140,807)

Municipal

($175,938)

Supranational

($340,000)

Corporate

($553,125)

Total Net Activity

($1,224,453)

Municipal Municipal

Supranational Supranational

Corporate Corporate

($0.6)

($0.4)
Sales/Maturities

($0.2)

$0.0

Purchases

Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.

111

© PFM Asset Management LLC | pfmam.com

13

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Characteristics

Historical Sector Allocation

18%

22%

1%
2%
19%
20%
5%
1%

5%
3%

1%

12%

10%

43%

Sep-24

Jun-24

37%

Only includes fixed-income securities held within the separately managed account(s) and LGIPs managed by PFMAM.

112

© PFM Asset Management LLC | pfmam.com

14

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Performance

Accrual Basis Earnings

Accrual Basis Earnings

3 Months

1 Year

3 Years

5 Year

10 Year¹

$60,168

$204,845

$611,991

$1,452,383

$3,780,891

Realized Gains / (Losses)³

($39)

($4,159)

($106,760)

$402,151

$355,751

Change in Amortized Cost

$8,520

$29,134

$58,181

$22,364

($192,082)

Total Earnings

$68,649

$229,820

$563,412

$1,876,898

$3,944,560

Interest Earned²

1. The lesser of 10 years or since inception is shown. Performance inception date is March 31, 2010.
2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.
3. Realized gains / (losses) are shown on an amortized cost basis.

113

© PFM Asset Management LLC | pfmam.com

15

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Performance

Portfolio Performance
Portfolio
8.0%

Return

6.0%

4.0%

2.0%

0.0%

3 Months

Market Value Basis Earnings

1 Year

3 Years

5 Years

10 Years

3 Months

1 Year

3 Years

5 Years

10 Years¹

Interest Earned²

$60,168

$204,845

$611,991

$1,452,383

$3,780,891

Change in Market Value

$209,426

$565,551

($530,991)

($200,401)

($83,500)

Total Dollar Return

$269,594

$770,396

$81,000

$1,251,982

$3,697,391

2.31%

6.53%

0.82%

1.45%

1.71%

Total Return³
Portfolio

1. The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is March 31, 2010.
2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.
3. Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.
4. The portfolio’s benchmark is N/A.. Source: Bloomberg Financial LP.

114

© PFM Asset Management LLC | pfmam.com

16

For
For the
the Quarter
Quarter Ended
Ended September
September 30, 2024
For the Quarter Ended March 31, 2022

BEACH
CLIENT CITIES
NAME HEALTH DISTRICT
California Affiliated Risk Management Authorities

Market
Market Update
Market Update

Fixed-Income Sector Outlook – 4Q 2024
Sector

Our Investment Preferences

CO MME RC I AL P AP E R
/ CD
T RE AS UR IE S
T-Bill
T-Note
FE DE RAL AG E NC IE S
Bullets
Callables
SUPRANAT IONALS
CO RP O RAT E S
Financials
Industrials
SECURITIZED
Asset-Backed
Agency Mortgage-Backed
Agency CMBS

MUNICIP ALS

Current outlook

115

© PFM Asset Management LLC || pfmam.com
pfmam.com

Outlook one quarter ago

Negative

Slightly
Negative

Neutral

Slightly
Positive

Positive

17

Portfolio Transactions

116

© PFM Asset Management LLC | pfmam.com

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Activity

Quarterly Portfolio Transactions
Trade
Date

Settle
Date

Par ($)

CUSIP

Security Description

Coupon

MONEY0002

MONEY MARKET FUND

0.00%

Maturity
Date

Transact
Amount ($)

Yield
at Market

Realized
G/L (BV)

INTEREST
7/1/2024

7/1/2024

7/1/2024

7/1/2024

240,000.00

341271AD6

FLORIDA ST BRD OF ADM

1.25%

7/1/2025

1,509.60

7/1/2024

7/25/2024

170,708.25

3137BGK24

FHMS K043 A2

3.06%

12/1/2024

435.59

7/8/2024

7/8/2024

125,000.00

14913R2U0

CATERPILLAR FINL SERVICE

1.70%

1/8/2027

1,062.50

7/15/2024

7/15/2024

1,286.87

44933LAC7

HART 2021-A A3

0.38%

9/15/2025

0.41

7/15/2024

7/15/2024

10,989.71

14314QAC8

CARMX 2021-2 A3

0.52%

2/17/2026

4.76

7/15/2024

7/15/2024

110,000.00

254683CP8

DCENT 2021-A1 A1

0.58%

9/15/2026

53.17

7/15/2024

7/15/2024

96,341.73

14318MAD1

CARMX 2022-3 A3

3.97%

4/15/2027

318.73

7/15/2024

7/15/2024

70,000.00

65480JAC4

NAROT 2022-B A3

4.46%

5/17/2027

260.17

7/21/2024

7/21/2024

325,000.00

3137EAEU9

FREDDIE MAC

0.37%

7/21/2025

609.38

7/26/2024

7/26/2024

150,000.00

06406RBA4

BANK OF NY MELLON CORP (CALLABLE)

2.05%

1/26/2027

1,537.50

7/31/2024

7/31/2024

1,400,000.00

91282CCP4

US TREASURY N/B

0.62%

7/31/2026

4,375.00

8/1/2024

8/25/2024

170,400.76

3137BGK24

FHMS K043 A2

3.06%

12/1/2024

434.81

8/1/2024

8/1/2024

150,000.00

06051GFS3

BANK OF AMERICA CORP

3.87%

8/1/2025

2,906.25

8/1/2024

8/1/2024

MONEY0002

MONEY MARKET FUND

0.00%

8/6/2024

8/6/2024

125,000.00

69371RQ66

PACCAR FINANCIAL CORP

1.80%

2/6/2025

1,125.00

8/13/2024

8/13/2024

175,000.00

89236TGT6

TOYOTA MOTOR CREDIT CORP

1.80%

2/13/2025

1,575.00

117

© PFM Asset Management LLC | pfmam.com

442.39

538.13

18

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Activity

Quarterly Portfolio Transactions
Trade
Date

Settle
Date

Par ($)

CUSIP

Security Description

Coupon

Maturity
Date

Transact
Amount ($)

Yield
at Market

Realized
G/L (BV)

INTEREST
8/15/2024

8/15/2024

90,937.75

14318MAD1

CARMX 2022-3 A3

3.97%

4/15/2027

300.85

8/15/2024

8/15/2024

70,000.00

65480JAC4

NAROT 2022-B A3

4.46%

5/17/2027

260.17

8/15/2024

8/15/2024

8,674.86

14314QAC8

CARMX 2021-2 A3

0.52%

2/17/2026

3.76

8/15/2024

8/15/2024

110,000.00

254683CP8

DCENT 2021-A1 A1

0.58%

9/15/2026

53.17

8/25/2024

8/25/2024

250,000.00

3135G05X7

FANNIE MAE

0.37%

8/25/2025

468.75

8/30/2024

8/30/2024

254687FK7

WALT DISNEY COMPANY/THE (CALLABLE)

1.75%

8/30/2024

2,211.81

9/1/2024

9/25/2024

3137BGK24

FHMS K043 A2

3.06%

12/1/2024

428.80

9/3/2024

9/3/2024

MONEY0002

MONEY MARKET FUND

0.00%

9/4/2024

9/4/2024

025816CQ0

AMERICAN EXPRESS CO (CALLABLE)

2.25%

3/4/2025

506.25

9/4/2024

9/4/2024

3130AK5E2

FEDERAL HOME LOAN BANK

0.37%

9/4/2025

187.50

9/6/2024

9/6/2024

254687FK7

WALT DISNEY COMPANY/THE (CALLABLE)

1.75%

8/30/2024

-24.31

9/10/2024

9/10/2024

24422EVU0

JOHN DEERE CAPITAL CORP

0.62%

9/10/2024

156.25

9/15/2024

9/15/2024

650036DT0

NY ST URBAN DEV-F-1

0.87%

3/15/2025

870.00

9/15/2024

9/15/2024

14318MAD1

CARMX 2022-3 A3

3.97%

4/15/2027

282.67

9/15/2024

9/15/2024

254683CP8

DCENT 2021-A1 A1

0.58%

9/15/2026

53.17

9/15/2024

9/15/2024

084664CZ2

BERKSHIRE HATHAWAY FIN (CALLABLE)

2.30%

3/15/2027

2,587.50

9/15/2024

9/15/2024

002824BM1

ABBOTT LABORATORIES (CALLABLE)

3.87%

9/15/2025

2,906.25

118

© PFM Asset Management LLC | pfmam.com

318.68

19

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Activity

Quarterly Portfolio Transactions
Settle
Date

Trade
Date

Par ($)

CUSIP

Security Description

Coupon

Maturity
Date

Transact
Amount ($)

Yield
at Market

Realized
G/L (BV)

INTEREST
9/15/2024

9/15/2024

14314QAC8

CARMX 2021-2 A3

0.52%

2/17/2026

2.78

9/15/2024

9/15/2024

65480JAC4

NAROT 2022-B A3

4.46%

5/17/2027

253.61

9/23/2024

9/23/2024

3137EAEX3

FREDDIE MAC

0.37%

9/23/2025

468.75

9/23/2024

9/23/2024

4581X0DZ8

INTER-AMERICAN DEVEL BK

0.50%

9/23/2024

850.00

Total INTEREST

3,849,339.93

30,334.80

0.00

MATURITY
7/1/2024

7/1/2024

50,000.00

20772KJW0

CT ST TXBL GO BONDS

1.99%

7/1/2024

50,499.50

8/1/2024

8/1/2024

125,000.00

798306WN2

SAN JUAN CA UNIF SCH

0.70%

8/1/2024

125,438.75

8/1/2024

8/1/2024

250,000.00

05531FBH5

BB&T CORPORATION CORP BONDS

2.50%

8/1/2024

253,125.00

8/30/2024

8/30/2024

250,000.00

254687FK7

WALT DISNEY COMPANY/THE (CALLABLE)

1.75%

8/30/2024

250,000.00

9/10/2024

9/10/2024

50,000.00

24422EVU0

JOHN DEERE CAPITAL CORP

0.62%

9/10/2024

50,000.00

9/23/2024

9/23/2024

340,000.00

4581X0DZ8

INTER-AMERICAN DEVEL BK

0.50%

9/23/2024

340,000.00

Total MATURITY

1,065,000.00

1,069,063.25

0.00

PAYDOWNS
7/1/2024

7/25/2024

307.49

3137BGK24

FHMS K043 A2

3.06%

12/1/2024

307.49

7/15/2024

7/15/2024

2,314.85

14314QAC8

CARMX 2021-2 A3

0.52%

2/17/2026

2,314.85

7/15/2024

7/15/2024

1,286.87

44933LAC7

HART 2021-A A3

0.38%

9/15/2025

1,286.87

119

© PFM Asset Management LLC | pfmam.com

20

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Activity

Quarterly Portfolio Transactions
Trade
Date

Settle
Date

Par ($)

CUSIP

Security Description

Coupon

Maturity
Date

Transact
Amount ($)

Yield
at Market

Realized
G/L (BV)

PAYDOWNS
7/15/2024

7/15/2024

5,403.98

14318MAD1

CARMX 2022-3 A3

3.97%

4/15/2027

5,403.98

8/1/2024

8/25/2024

2,353.06

3137BGK24

FHMS K043 A2

3.06%

12/1/2024

2,353.06

8/15/2024

8/15/2024

2,264.74

14314QAC8

CARMX 2021-2 A3

0.52%

2/17/2026

2,264.74

8/15/2024

8/15/2024

5,495.54

14318MAD1

CARMX 2022-3 A3

3.97%

4/15/2027

5,495.54

8/15/2024

8/15/2024

1,765.29

65480JAC4

NAROT 2022-B A3

4.46%

5/17/2027

1,765.29

9/1/2024

9/25/2024

11,921.89

3137BGK24

FHMS K043 A2

3.06%

12/1/2024

11,921.89

-39.37

9/15/2024

9/15/2024

5,853.40

14318MAD1

CARMX 2022-3 A3

3.97%

4/15/2027

5,853.40

0.08

9/15/2024

9/15/2024

110,000.00

254683CP8

DCENT 2021-A1 A1

0.58%

9/15/2026

110,000.00

9.48

9/15/2024

9/15/2024

4,154.65

65480JAC4

NAROT 2022-B A3

4.46%

5/17/2027

4,154.65

0.49

9/15/2024

9/15/2024

2,268.05

14314QAC8

CARMX 2021-2 A3

0.52%

2/17/2026

2,268.05

0.14

155,389.81

-39.00

Total PAYDOWNS

155,389.81

120

© PFM Asset Management LLC | pfmam.com

-9.82

21

Portfolio Holdings

121

© PFM Asset Management LLC | pfmam.com

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Portfolio Holdings

Managed Account Detail of Securities Held
CUSIP

Par

S&P
Rating

Moody's
Rating

Trade
Date

Settle
Date

Original
Cost

US TREASURY N/B
DTD 06/30/2020 0.250% 06/30/2025

912828ZW3

550,000.00

AA+

Aaa

4/1/2021

4/5/2021

539,343.75

0.71

347.49

548,126.37

534,393.75

US TREASURY N/B
DTD 06/30/2020 0.250% 06/30/2025

912828ZW3

525,000.00

AA+

Aaa

3/1/2021

3/4/2021

517,596.68

0.58

331.69

523,724.70

510,103.12

US TREASURY N/B
DTD 12/31/2020 0.375% 12/31/2025

91282CBC4

550,000.00

AA+

Aaa

9/1/2021

9/7/2021

542,824.22

0.68

521.23

547,923.76

526,925.85

US TREASURY N/B
DTD 12/31/2020 0.375% 12/31/2025

91282CBC4

800,000.00

AA+

Aaa

11/2/2021

11/4/2021

778,156.25

1.05

758.15

793,438.24

766,437.60

US TREASURY N/B
DTD 12/31/2020 0.375% 12/31/2025

91282CBC4

325,000.00

AA+

Aaa

5/4/2021

5/6/2021

319,502.93

0.75

308.00

323,525.49

311,365.28

US TREASURY N/B
DTD 04/30/2021 0.750% 04/30/2026

91282CBW0

750,000.00

AA+

Aaa

1/4/2022

1/6/2022

731,718.75

1.33

2,353.94

743,314.29

715,869.00

US TREASURY N/B
DTD 04/30/2021 0.750% 04/30/2026

91282CBW0

200,000.00

AA+

Aaa

2/18/2022

2/25/2022

191,390.63

1.82

627.72

196,748.20

190,898.40

US TREASURY N/B
DTD 04/30/2021 0.750% 04/30/2026

91282CBW0

100,000.00

AA+

Aaa

4/1/2022

4/6/2022

92,699.22

2.66

313.86

97,168.18

95,449.20

US TREASURY N/B
DTD 04/30/2021 0.750% 04/30/2026

91282CBW0

70,000.00

AA+

Aaa

2/10/2022

2/14/2022

66,694.14

1.92

219.70

68,760.30

66,814.44

US TREASURY N/B
DTD 08/02/2021 0.625% 07/31/2026

91282CCP4

250,000.00

AA+

Aaa

7/5/2022

7/8/2022

228,857.42

2.84

263.25

240,482.99

236,562.50

US TREASURY N/B
DTD 08/02/2021 0.625% 07/31/2026

91282CCP4

125,000.00

AA+

Aaa

8/1/2022

8/4/2022

115,078.13

2.74

131.62

120,451.06

118,281.25

US TREASURY N/B
DTD 08/02/2021 0.625% 07/31/2026

91282CCP4

1,025,000.00

AA+

Aaa

6/2/2022

6/6/2022

932,790.04

2.94

1,079.31

984,369.23

969,906.25

5,056,652.16

1.51

7,255.96

5,188,032.81

5,043,006.64

200,000.00

0.87

77.33

200,000.00

196,638.40

Security Type/Description
Dated Date/Coupon/Maturity

YTM
at Cost

Accrued
Interest

Amortized
Cost

Market
Value

U.S. Treasury

5,270,000.00

Security Type Sub-Total

Municipal
NY ST URBAN DEV-F-1
DTD 12/23/2020 0.870% 03/15/2025

650036DT0

122

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200,000.00

NR

NR

12/16/2020 12/23/2020

22

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BEACH CITIES HEALTH DISTRICT

Security Type/Description
Dated Date/Coupon/Maturity

Portfolio Holdings

CUSIP

Par

S&P
Rating

Moody's
Rating

Trade
Date

Settle
Date

Original
Cost

YTM
at Cost

Accrued
Interest

Amortized
Cost

Market
Value

UNIV OF CALIFORNIA-BG
(CALLABLE)
DTD 07/16/2020 0.883% 05/15/2025

91412HGE7

70,000.00

AA

Aa2

7/10/2020

7/16/2020

70,000.00

0.88

233.50

70,000.00

68,530.21

FLORIDA ST BRD OF ADM
DTD 09/16/2020 1.258% 07/01/2025

341271AD6

50,000.00

AA

Aa3

9/3/2020

9/16/2020

50,353.50

1.11

157.25

50,055.33

48,806.05

FLORIDA ST BRD OF ADM
DTD 09/16/2020 1.258% 07/01/2025

341271AD6

125,000.00

AA

Aa3

9/3/2020

9/16/2020

125,000.00

1.26

393.13

125,000.00

122,015.13

FLORIDA ST BRD OF ADM
DTD 09/16/2020 1.258% 07/01/2025

341271AD6

65,000.00

AA

Aa3

9/3/2020

9/16/2020

65,430.95

1.12

204.43

65,067.45

63,447.87

CALIFORNIA ST UNIV-B
DTD 07/29/2021 0.862% 11/01/2025

13077DQD7

55,000.00

AA-

Aa2

7/9/2021

7/29/2021

55,000.00

0.86

197.54

55,000.00

53,046.18

565,784.45

1.01

1,263.18

565,122.78

552,483.84

2,136,668.70

0.00

2,136,668.70

2,136,668.70

2,136,668.70

0.00

2,136,668.70

2,136,668.70

Municipal

565,000.00

Security Type Sub-Total

Joint Powers Authority
CAMP Pool

2,136,668.70

Security Type Sub-Total

2,136,668.70

AAAm

NR

Federal Agency
FEDERAL HOME LOAN BANK
DTD 04/16/2020 0.500% 04/14/2025

3130AJHU6

250,000.00

AA+

Aaa

4/15/2020

4/16/2020

248,760.00

0.60

579.86

249,866.90

244,951.75

FANNIE MAE
DTD 04/24/2020 0.625% 04/22/2025

3135G03U5

250,000.00

AA+

Aaa

4/22/2020

4/24/2020

249,485.00

0.67

690.10

249,942.43

244,952.75

FREDDIE MAC
DTD 07/23/2020 0.375% 07/21/2025

3137EAEU9

325,000.00

AA+

Aaa

7/21/2020

7/23/2020

323,381.50

0.48

236.98

324,738.95

315,666.65

FANNIE MAE
DTD 08/27/2020 0.375% 08/25/2025

3135G05X7

250,000.00

AA+

Aaa

8/25/2020

8/27/2020

248,830.00

0.47

93.75

249,789.17

241,903.25

FEDERAL HOME LOAN BANK
DTD 09/11/2020 0.375% 09/04/2025

3130AK5E2

100,000.00

AA+

Aaa

9/10/2020

9/11/2020

99,700.00

0.44

28.13

99,944.28

96,707.60

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For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Security Type/Description
Dated Date/Coupon/Maturity

Portfolio Holdings

CUSIP

Par

S&P
Rating

Moody's
Rating

Trade
Date

Settle
Date

3137EAEX3

250,000.00

AA+

Aaa

9/23/2020

9/25/2020

Original
Cost

YTM
at Cost

Accrued
Interest

Amortized
Cost

Market
Value

Federal Agency
FREDDIE MAC
DTD 09/25/2020 0.375% 09/23/2025

1,425,000.00

Security Type Sub-Total

249,247.50

0.44

20.83

249,852.68

241,353.00

1,419,404.00

0.52

1,649.65

1,424,134.41

1,385,535.00

Corporate
PACCAR FINANCIAL CORP
DTD 02/06/2020 1.800% 02/06/2025

69371RQ66

125,000.00

A+

A1

10/22/2020 10/29/2020

130,638.75

0.72

343.75

125,458.58

123,669.13

TOYOTA MOTOR CREDIT CORP
DTD 02/13/2020 1.800% 02/13/2025

89236TGT6

50,000.00

A+

A1

5/20/2020

5/26/2020

50,488.50

1.58

120.00

50,038.00

49,465.35

TOYOTA MOTOR CREDIT CORP
DTD 02/13/2020 1.800% 02/13/2025

89236TGT6

25,000.00

A+

A1

5/21/2020

5/26/2020

25,348.00

1.49

60.00

25,027.07

24,732.68

TOYOTA MOTOR CREDIT CORP
DTD 02/13/2020 1.800% 02/13/2025

89236TGT6

100,000.00

A+

A1

5/20/2020

5/26/2020

100,977.00

1.58

240.00

100,076.00

98,930.70

AMERICAN EXPRESS CO (CALLABLE) 025816CQ0
DTD 03/04/2022 2.250% 03/04/2025

45,000.00

BBB+

A2

3/1/2022

3/4/2022

44,954.55

2.29

75.94

44,993.56

44,532.45

HOME DEPOT INC (CALLABLE)
DTD 03/28/2022 2.700% 04/15/2025

437076CM2

15,000.00

A

A2

3/24/2022

3/28/2022

14,973.75

2.76

186.75

14,995.36

14,839.01

CITIGROUP INC
DTD 04/27/2015 3.300% 04/27/2025

172967JP7

150,000.00

BBB+

A3

8/28/2020

9/1/2020

166,492.50

0.88

2,117.50

152,027.12

148,741.35

APPLE INC (CALLABLE)
DTD 05/11/2020 1.125% 05/11/2025

037833DT4

250,000.00

AA+

Aaa

5/11/2020

5/13/2020

250,502.50

1.08

1,093.75

250,054.00

244,932.00

GENERAL DYNAMICS CORP
(CALLABLE)
DTD 05/11/2018 3.500% 05/15/2025

369550BG2

150,000.00

A

A2

10/16/2020 10/20/2020

168,165.00

0.80

1,983.33

151,879.53

149,114.40

AMAZON.COM INC (CALLABLE)
DTD 06/03/2020 0.800% 06/03/2025

023135BQ8

375,000.00

AA

A1

6/3/2020

6/5/2020

374,816.25

0.81

983.33

374,975.27

366,225.38

BANK OF AMERICA CORP
DTD 07/30/2015 3.875% 08/01/2025

06051GFS3

150,000.00

A-

A1

8/18/2020

8/20/2020

171,279.00

0.93

968.75

153,584.33

149,480.25

ABBOTT LABORATORIES
(CALLABLE)
DTD 03/22/2017 3.875% 09/15/2025

002824BM1

150,000.00

AA-

Aa3

9/24/2020

9/28/2020

171,897.00

0.86

258.33

153,277.45

149,653.80

UNITEDHEALTH GROUP INC
(CALLABLE)
DTD 05/19/2021 1.150% 05/15/2026

91324PEC2

150,000.00

A+

A2

5/17/2021

5/19/2021

149,739.00

1.19

651.67

149,915.13

143,409.00

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For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Security Type/Description
Dated Date/Coupon/Maturity

Portfolio Holdings

CUSIP

Par

S&P
Rating

Moody's
Rating

Trade
Date

Settle
Date

Original
Cost

YTM
at Cost

Accrued
Interest

Amortized
Cost

Market
Value

CATERPILLAR FINL SERVICE
DTD 01/10/2022 1.700% 01/08/2027

14913R2U0

125,000.00

A

A2

1/11/2022

1/13/2022

124,368.75

1.81

489.93

124,712.68

119,022.50

BANK OF NY MELLON CORP
(CALLABLE)
DTD 01/26/2022 2.050% 01/26/2027

06406RBA4

150,000.00

A

A1

1/26/2022

1/28/2022

149,667.00

2.10

555.21

149,845.35

143,593.95

BERKSHIRE HATHAWAY FIN
(CALLABLE)
DTD 03/15/2022 2.300% 03/15/2027

084664CZ2

225,000.00

AA

Aa2

3/15/2022

3/17/2022

220,779.00

2.70

230.00

222,924.71

217,717.65

2,315,086.55

1.31

10,358.24

2,243,784.14

2,188,059.60

163,858.92

1.91

398.38

156,505.68

155,233.08

163,858.92

1.91

398.38

156,505.68

155,233.08

Corporate

2,235,000.00

Security Type Sub-Total

Agency CMBS
FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024

3137BGK24

156,125.81

AA+

Aaa

3/19/2020

3/25/2020

156,125.81

Security Type Sub-Total

ABS
CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026

14314QAC8

4,142.08

AAA

NR

4/13/2021

4/21/2021

4,141.18

0.52

0.96

4,141.82

4,126.54

CARMX 2022-3 A3
DTD 07/20/2022 3.970% 04/15/2027

14318MAD1

79,588.82

AAA

NR

7/12/2022

7/20/2022

79,586.94

3.97

140.43

79,587.81

79,224.38

NAROT 2022-B A3
DTD 09/28/2022 4.460% 05/17/2027

65480JAC4

64,080.06

AAA

Aaa

9/20/2022

9/28/2022

64,066.80

4.46

127.02

64,072.55

64,026.36

147,810.95

147,794.92

4.09

268.41

147,802.18

147,377.28

9,798,936.77

9,668,581.00

1.34

21,193.82

9,725,382.00

9,471,695.44

$11,935,605.47

$11,805,249.70

1.34%

$21,193.82

$11,862,050.70

$11,608,364.14

Security Type Sub-Total
Managed Account Sub Total
Securities Sub Total
Accrued Interest

$21,193.82

Total Investments

$11,629,557.96

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25

For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Appendix

Important Disclosures
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to
any specific objectives or financial circumstances.
Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange
Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank
is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The
information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources
external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely
on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts
are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are
for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are
gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of
the strategy rated by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets.
Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales
charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be
lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast,
projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as
of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actual
events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data
presented are not necessarily indicative of future events or expected performance.
For more information regarding PFMAM's services or entities, please visit www.pfmam.com.
© 2023 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.

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For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Appendix

Important Disclosures
This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy
or sell any fund or other security. Investors should consider the Trust's investment objectives, risks, charges, and expenses before investing in the Trust. This and other
information about the Trust is available in the Trust's current Information Sheet, which should be read carefully before investing. A copy of the Trust's information
Statement may be available by calling 1-800-729-7665 or is available on the Trust's website at www.camponline.com. While the Cash Reserve Portfolio seeks to
maintain a stable net asset value of $1.00 per share and the CAMP TERM Portfolio seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is
possible to lose money investing in the Trust. An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Shares of the Trust are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra.org) and
Securities Investor Protection Corporation (SIPC) (www.sipc.org). PFM Fund Distributors, Inc. is an affiliate of PFM Asset Management LLC.
Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Refinitiv, Bloomberg, or
Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated
market value.
In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly
balances, and forward settling sales are excluded.
Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown
gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past
performance is not indicative of future returns.
Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.
Money market fund/cash balances are included in performance and duration computations.
Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.
Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.
MBS maturities are represented by expected average life.

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For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Appendix

Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.
Agencies: Federal agency securities and/or Government-sponsored enterprises.
Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase
date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized
on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.
Asset-Backed Security: A financial instrument collateralized by an underlying pool of assets – usually ones that generate a cash flow from debt, such as loans,
leases, credit card balances, and receivables.
Bankers’ Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.
Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector added
or subtracted from the overall portfolio performance.
Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.
Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding
on investment returns, while nominal yield does not.
FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.
Interest Rate: Interest per year divided by principal amount and expressed as a percentage.
Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.
Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.
Par Value: The nominal dollar face amount of a security.
Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the
mortgage-backed security.

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For the Quarter Ended September 30, 2024
BEACH CITIES HEALTH DISTRICT

Appendix

Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and
maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.
Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose
decisions are binding on its members.
Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.
Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.
U.S. Treasury: The department of the U.S. government that issues Treasury securities.
Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a
percentage on an annualized basis.
YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period
from purchase date to maturity, stated as a percentage on an annualized basis.
YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time
period remaining until maturity, stated as a percentage on an annualized basis.

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Beach Cities Health District

PARS 115 Trust – OPEB Prefunding Program &
Pension Rate Stabilization Plan Client Review
November 2024

130

Contacts

Rachael Sanders, CEBS
Vice President, Consulting
(800) 540-6369 x121
[email protected]

Dennis Mullins
Senior Portfolio Manager
(513) 304-0398
[email protected]

Ashley Baires
Client Services Coordinator
(800) 540-6369 x170
[email protected]

Beach Cities Health District ▎131
2

Summary of Agency’s opeb Plan
Plan Type:

IRC Section 115 Irrevocable Exclusive Benefit Trust

Trustee Approach:

Discretionary

Plan Effective Date:

September 26, 2018

Plan Administrator:

Chief Finance Officer

Current Investment Strategy:

Balanced Strategic Blend (Active); Pooled Account

AS OF SEPTEMBER 30, 2024:
Initial Contribution:

January 2019: $300,000

Additional Contributions:

$300,000

Total Contributions:

$600,000

Disbursements:

$0

Net Investment Earnings:

$294,867

Account Balance:

$794,867

Beach Cities Health District ▎132
3

Summary of Agency’s opeb Plan
HISTORY OF CONTRIBUTIONS, DISBURSEMENTS, AND TOTAL ASSETS AS OF SEPTEMBER 30, 2024:
$900,000
Year

Contributions

Disbursements

Total Assets

Jun-19*

$600,000

$0

$633,746

Jun-20

$0

$0

$649,724

Jun-21

$0

$0

$711,561

Jun-22

$0

$0

$611,896

$400,000

Jun-23

$0

$0

$667,855

$300,000

Jun-24

$0

$0

$753,873

Jun-25**

$0

$0

$794,867

$800,000
$700,000
$600,000
Contributions
Disbursements

$500,000

Total Assets

$200,000
$100,000
$0
Jun-19

Jun-20

Jun-21

Jun-22

Jun-23

Plan Year Ending

Jun-24

Jun-25

*Plan Year Ending June 2019 is based on 6 months of activity.
**Plan Year Ending June 2025 is based on 3 months of activity.

Beach Cities Health District ▎133
4

OPEB Actuarial Results
•

We have received the actuarial report by Foster & Foster dated August 18, 2023
with a measurement date as of June 30, 2022. In the table below, we have
summarized the results.
Demographic Study

Measurement Date:
June 30, 2021

Measurement Date:
June 30, 2022

Actives

69

75

Inactives currently
receiving benefits

7

6

Inactives entitled to but
not yet receiving benefits

12

13

Total

88

94

Beach Cities Health District ▎134
5

OPEB Actuarial Results
Measurement Date:
June 30, 2021
Discount Rate: 5.75%

Measurement Date:
June 30, 2022
Discount Rate: 5.75%

Total OPEB Liability (TOL)
Actuarial Accrued Liability (AAL)

$614,209

$683,223

Fiduciary Net Position
Actuarial Value of Assets

$711,561

$611,896*

Net OPEB Liability (NOL)
Unfunded Actuarial Accrued Liability (UAAL)

($97,352)

$71,327

Funded Ratio (%)

115.8%

89.6%

Actuarially Determined Contribution
(ADC)

$60,906

$55,557

Annual Benefit Payments

$12,858

$18,550

*As of September 30, 2024, assets at $794,867 (approx. ~116.34% funded).
Rule of thumb: For every one percent increase in the discount rate, the unfunded liability is lowered by 10-12%.

Beach Cities Health District ▎135
6

OPEB Plan total Returns
AS OF SEPTEMBER 30, 2024
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%

Year

Returns

Jun-19*

9.56%

Jun-20

3.08%

Jun-21

26.93%

Jun-22

-13.50%

Jun-23

9.78%

Jun-24

13.52%

Jun-25**

5.59%

0.00%
-5.00%
Inception to Date (Annualized)

-10.00%

8.89%

-15.00%

Jun-25

Jun-24

Jun-23

Jun-22

Jun-21

Jun-20

Jun-19

-20.00%

*Plan Year Ending June 2019 is based on 6
months of activity.
**Plan Year Ending June 2025 is based on 3
months of activity.
.
Returns are net of the embedded fund fees and
gross of trustee and trust administrator fees

Plan Year Ending

Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value. Past performance does not guarantee future results. Performance returns are impacted by agency plan
activity and may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
The advisor to the PARS portfolios is U.S. Bank, and PFM Asset Management serves as sub-advisor to U.S. Bank to manage these portfolios. Please see important additional disclosures to the PARS portfolios included
in the individual strategy information at the end of this presentation.

Beach Cities Health District ▎136
7

Summary of Agency’s Pension Plan
Plan Type:

IRC Section 115 Irrevocable Exclusive Benefit Trust

Trustee Approach:

Discretionary

Plan Effective Date:

September 26, 2018

Plan Administrator:

Chief Finance Officer

Current Investment Strategy:

Moderate Strategic Blend (Active); Pooled Account

AS OF SEPTEMBER 30, 2024:
Initial Contribution:

January 2019: $700,000

Additional Contributions:

$1,700,000

Total Contributions:

$2,400,000

Disbursements:

$256,439

Net Investment Earnings:

$1,016,694

Account Balance:

$3,260,255

Beach Cities Health District ▎137
8

Summary of Agency’s pension Plan
HISTORY OF CONTRIBUTIONS, DISBURSEMENTS, AND TOTAL ASSETS AS OF SEPTEMBER 30, 2024:
$3,500,000
Year

Contributions

Disbursements

Total Assets

Jun-19*

$2,400,000

$0

$2,522,893

Jun-20

$0

$0

$2,607,113

Jun-21

$0

$0

$3,278,536

Jun-22

$0

$0

$2,839,414

Jun-23

$0

$0

$3,035,156

Jun-24

$0

$256,439

$3,092,304

Jun-25**

$0

$0

$3,260,255

$3,000,000

$2,500,000

Contributions
Disbursements
Total Assets

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Jun-19

Jun-20

Jun-21

Jun-22

Jun-23

Jun-24

Jun-25

Plan Year Ending
*Plan Year Ending June 2019 is based on 6 months of activity.
**Plan Year Ending June 2025 is based on 3 months of activity.

Beach Cities Health District ▎138
9

Pension Funding Status
As of June 30, 2023, Beach Cities Health District’s CalPERS pension plan is funded as follows*:
Valuation as of
June 30, 2022

Valuation as of
June 30, 2023

Actuarial Liability

$21.1 M

$22.9 M

8.4% ↑

Assets

$16.3 M

$17.5 M

7.5% ↑

Unfunded Liability

$4.8 M

$5.4 M

11.4% ↑

Funded Ratio

77.2%

76.5%

0.8% ↓

$661.8 K
(FY 23-24)

$766.3 K
(FY 24-25)

15.8% ↑

---

$1.14 M
(FY 30-31)

48.9% ↑

Combined Miscellaneous Groups *

Employer Contribution Amount
Employer Contribution Amount – Projected *

Change

* Data through 2030-31 from Agency’s latest CalPERS actuarial valuation.

Beach Cities Health District ▎ 10
139

Pension Plan total Returns
AS OF SEPTEMBER 30, 2024
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%

Year

Returns

Jun-19*

9.05%

Jun-20

3.89%

Jun-21

22.35%

Jun-22

-12.87%

Jun-23

7.51%

Jun-24

11.81%

Jun-25**

5.59%

Inception to Date (Annualized)
7.71%

-10.00%

Plan Year Ending

Jun-25

Jun-24

Jun-23

Jun-22

Jun-21

Jun-20

Jun-19

-15.00%

*Plan Year Ending June 2019 is based on 6
months of activity.
**Plan Year Ending June 2025 is based on 3
months of activity.
Returns are net of the embedded fund fees and
gross of trustee and trust administrator fees

Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value. Past performance does not guarantee future results. Performance returns are impacted by agency plan
activity and may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
The advisor to the PARS portfolios is U.S. Bank, and PFM Asset Management serves as sub-advisor to U.S. Bank to manage these portfolios. Please see important additional disclosures to the PARS portfolios included
in the individual strategy information at the end of this presentation.

Beach Cities Health District ▎ 11
140

Investment Review

Beach Cities Health District ▎ 12
141

PARS OPEB and Pension Trust Balanced Strategic Blend

Investment Performance Review
For the Quarter Ended September 30, 2024

Client Management Team
PFM Asset Management

PFM Asset Management LLC
1 California Street
Suite 1000
San Francisco, CA 94111

1735 Market Street
43rd Floor
Philadelphia, PA 19103

142

Financial Markets & Investment Strategy Review

1

143

For the Quarter Ended September 30, 2024
Multi-Asset Class Management

QUARTERLY MARKET SUMMARY
Factors to Consider Over the Next 6-12 Months
Monetary Policy (Global):

Economic Growth (Global):

Inflation (U.S.):

• The Fed has begun its easing cycle with a 50 basis
point (bp) cut with expectation of an additional 50
bps in rate cuts by year end.
• The global easing cycle is underway with nearly all
major central banks (excluding BoJ) completing
multiple rate cuts.

• U.S. economic growth remains strong reflecting a
consumer who continues to spend at elevated
levels.
• Economic growth outside the U.S. remains mixed.
China recent stimulus measures are aimed to boost
growth, which is conducive to global growth.

• Inflation continues its trend lower but has been
buoyed by stubborn housing costs. We expect this
inflation to further trend lower.
• The broad-based inflation cooling helped fuel the
Fed’s decision to cut by 50 bps but policy makers
note they are not declaring victory on price stability.

Financial Conditions (U.S.):

Consumer Spending (U.S.):

Labor Markets:

• The continuation of stable market measures, such
as narrow corporate yield spreads, record equity
index levels and low volatility, reflect economic
confidence.
• We remain focused on the cooling labor market and
effects this might have on the consumer as potential
catalysts for a broader slow down.

• The consumer continues to spend and support
economic strength. Upward revisions to the
personal savings rate paint the consumer in better
light.
• Moderation in the pace of overall spending is
expected given slowing wage growth and labor
market conditions.

• The labor market continues to moderate from
extremely strong levels seen in prior quarters. The
recent downward revisions to nonfarm payrolls
further emphasized the cooling.
• Other labor metrics remain well positioned such as
the layoffs and discharge rate pointing towards
moderation rather than deterioration.

Corporate Fundamentals:

Valuations:

Political Risks:

• Fed rate cuts are a positive for economic growth
and corporate earnings, but any tax/tariff changes
need to be closely monitored for any impact on
profit margins.

• U.S. equity and credit markets have experienced a
run up in valuations. Any negative shock relating to
economic growth could lead to sell-off.

• Geopolitical risks continue to remain elevated.
Broadening of middle east conflict, U.S. and China
trade and tariff tensions, China’s moves in South
China Sea and Taiwan Strait further add to risks.

• Higher cash levels especially across S&P 500
companies along with broad based earnings growth
are positive.

Current outlook

• International equities look attractive, but continued
economic and geopolitical uncertainty is leading to
increased volatility.

Outlook one quarter ago

Stance Unfavorable
to Risk Assets

Negative

Slightly
Negative

• Policy uncertainty related to US elections outcome
is also expected to increase short term volatility.
Neutral

Slightly
Positive

Positive

Stance Favorable
to Risk Assets

Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within
this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (September 30, 2024) and are subject to change. Information is obtained from
sources generally believed to be reliable and available to the public; however, PFM Asset Management cannot guarantee its accuracy, completeness, or suitability.

1.1 144

For the Quarter Ended September 30, 2024
Multi-Asset Class Management

QUARTERLY MARKET SUMMARY
Investment Strategy Overview
Asset Class

Our Q4 2024 Investment Outlook

U.S. Equities
Large-Caps
Small-Caps

Non-U.S. Equities
Developed Markets
Emerging Markets

Fixed Income
Core Bonds
Investment Grade Credit
High Yield Credit
Diversifying Assets
Listed Real Estate
Listed Global Infrastructure
Current outlook

Outlook one quarter ago

Comments
• Moderate economic growth coupled with Fed easing should result in
continued positive performance for US equities. We are concerned about
the high valuations, but believe that soft landing economic scenario and
earnings growth strength will provide tailwinds.
• Equity markets experienced a period of volatility during Q3 which we
expect to continue amidst slowing growth, geopolitical tensions and
election related uncertainty.
• Small-caps have lagged large caps since the sell off in first week of
August pointing to lack of fundamental support to rally in July, but we
expect fundamentals to improve as rate cuts take hold. Worries from the
Banking Crisis on regional banks seems to be in our rearview mirror.
• International equities continue to trade at a discount to U.S. and have
been recently helped by ECB rate cuts and weakening dollar. BoJ
continues to tighten while other central banks are embarking on rate cuts.
• EM equity performance is reliant on Indian and Chinese equities, which
constitute roughly 45% of the MSCI Emerging Market Index. Indian
equities are trading at expensive valuations, and we don’t expect a
sustained recovery in Chinese equities due to stimulus unless there are
structural/geopolitical changes addressing debt overhang and geopolitical
stability.
• Slowing inflation and softening labor markets led to Fed cutting by 50 bps
at their September meeting. Further rate cuts are expected which is
positive for fixed income investors.
• About $6.3 trillion is sitting in money market funds which could flow into
fixed income as the rates becomes more attractive.
• Credit markets remain attractive due to strong corporate fundamentals.
We remain positive on investment grade but are staying closer to targets
on high yield given tighter spreads. We continue to closely watch for
signs for any distress in the corporate credit space.
• Continued economic growth, falling rates, strengthening fundamentals
along with attractive valuations relative to equities are tailwinds to listed
real estate performance leading us to overweight the exposure.
• Transition to renewable energy and increase in AI led data center
infrastructure spend are tailwinds for listed infrastructure. Utilities which
make up about ~50% of the universe have been performing well recently
due to lower rates.
Negative

Slightly
Negative

Neutral

Slightly
Positive

Positive

The view expressed within this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (September 30, 2024) and are subject to change.

1.2

145

Plan Performance Summary

2

146

PARS OPEB and Pension Trust Balanced Strategic Blend
Asset Allocation & Performance

As of September 30, 2024

Allocation
%
Total Portfolio
Blended Benchmark
Domestic Equity
Russell 3000 Index
Dodge & Cox Stock
iShares S&P 500 Value ETF
Columbia Contrarian Core Inst3
S&P 500
Putnam Core Equity Fund Y
Schwab US Large-Cap ETF
S&P 500
Harbor Capital Appreciation Ret
iShares S&P 500 Growth ETF
S&P 500
Natixis Vaughan Nelson Select N
S&P 500
iShares Russell Mid-Cap ETF
Russell Midcap Index
Undisc Managers Behavioral Val R6
Russell 2000 Index
Columbia Small Cap Growth Inst3
Russell 2000 Index
Emerald Growth Institutional
Russell 2000 Index

100.00
44.51
4.58
2.21
6.11
2.71
7.13
3.56
3.13
1.32
5.70
4.00
0.90
3.16

Performance(%)
1
Quarter
5.59
6.19
5.60
6.23
7.16
9.00
3.54
5.89
5.90
5.93
5.89
1.43
3.67
5.89
3.29
5.89
9.17
9.21
8.75
9.27
8.70
9.27
5.97
9.27

Year
To
Date
12.43
12.58
18.66
20.63
16.29
15.21
20.63
22.08
23.46
21.50
22.08
22.90
27.97
22.08
10.44
22.08
14.49
14.63
10.71
11.17
19.66
11.17
16.38
11.17

1
Year

3
Years

5
Years

7
Years

10
Years

Since
Inception

Inception
Date

23.49
23.12
33.90
35.19
27.71
30.85
36.11
36.35
37.92
36.02
36.35
42.95
40.83
36.35
22.51
36.35
29.12
29.33
27.71
26.76
31.73
26.76
33.77
26.76

4.57
5.01
8.85
10.29
10.29
12.92
12.11
11.91
13.21
10.92
11.91
7.37
9.88
11.91
8.39
11.91
5.60
5.75
10.41
1.84
-3.70
1.84
1.47
1.84

7.98
8.23
13.83
15.26
14.52
13.02
16.70
15.98
17.86
15.71
15.98
18.84
17.34
15.98
14.67
15.98
11.13
11.30
13.41
9.39
11.89
9.39
11.11
9.39

7.26
7.65
12.29
13.74
11.88
11.45
14.21
14.50
15.09
14.27
14.50
16.92
16.24
14.50
13.33
14.50
10.31
10.48
9.85
7.36
12.82
7.36
9.25
7.36

N/A
N/A
N/A
12.83
11.26
10.64
13.18
13.38
13.47
13.17
13.38
N/A
14.96
13.38
N/A
13.38
10.03
10.19
10.49
8.78
13.91
8.78
10.66
8.78

7.98
8.32
13.16
14.41
16.16
14.89
18.47
20.06
N/A
N/A
N/A
17.91
24.40
20.06
N/A
N/A
16.16
16.29
13.10
15.66
N/A
N/A
20.45
15.66

10/01/2015

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

10/01/2015
02/01/2024
02/01/2024
02/01/2024
10/01/2024
10/01/2024
02/01/2024
02/01/2024
10/01/2024
02/01/2024
02/01/2024
10/01/2024
02/01/2024

2.1 147

PARS OPEB and Pension Trust Balanced Strategic Blend
Asset Allocation & Performance

As of September 30, 2024

Allocation
%
International Equity
MSCI AC World ex USA (Net)
MFS International Growth R6
MSCI AC World ex USA (Net)
Fidelity International Index
MSCI EAFE (net)
Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)
Hartford Schroders Emerging Mkts Eq
MSCI EM (net)
Other Growth
Cohen & Steers Inst Realty Shares
MSCI US REIT Index
Lazard Global Listed Infrastructure Inst
MSCI World Core Infrastructure Index (Net)
NYLI CBRE Global Infrastructure
FTSE Global Core Infrastructure 50/50 Index (Net)
Fixed Income
Blmbg. U.S. Aggregate
Baird Aggregate Bond Inst
iShares Core US Aggregate Bond ETF
Blmbg. U.S. Aggregate
Dodge & Cox Income
PGIM Total Return Bond R6
Blmbg. U.S. Aggregate
NYLI MacKay High Yield Corp Bond Fund
ICE BofA US High Yield Index
Cash Equivalent
ICE BofA 3 Month U.S. T-Bill
First American Government Obligation - X
ICE BofA 3 Month U.S. T-Bill

10.69
1.51
3.96
1.35
3.87
5.88
2.93
1.46
1.49
36.32
9.50
6.89
9.06
9.14
1.73
2.60
2.60

Performance(%)
1
Quarter
6.09
8.06
11.10
8.06
7.29
7.26
0.26
8.06
5.16
8.72
15.03
16.03
16.12
9.82
14.19
14.33
13.59
5.24
5.20
5.24
5.21
5.20
5.59
5.21
5.20
3.70
5.28
1.31
1.37
1.31
1.37

Year
To
Date
13.25
14.21
18.17
14.21
13.19
12.99
17.31
14.21
14.86
16.86
N/A
16.22
15.84
8.88
12.84
13.84
16.20
5.22
4.45
5.02
4.56
4.45
5.78
5.85
4.45
6.94
8.03
3.51
4.03
3.98
4.03

1
Year

3
Years

5
Years

7
Years

10
Years

Since
Inception

Inception
Date

23.97
25.35
31.02
25.35
25.36
24.77
32.01
25.35
24.35
26.05
N/A
35.99
34.38
20.22
28.08
28.32
28.80
12.48
11.57
12.58
11.55
11.57
13.53
13.43
11.57
13.16
15.66
4.89
5.46
5.36
5.46

3.30
4.14
6.61
4.14
5.82
5.48
9.20
4.14
-1.82
0.40
N/A
4.57
4.98
9.40
5.58
6.19
6.71
-0.52
-1.39
-1.10
-1.39
-1.39
0.37
-0.87
-1.39
3.45
3.08
3.32
3.49
3.50
3.49

7.42
7.59
9.84
7.59
8.36
8.20
12.20
7.59
5.01
5.75
N/A
6.56
5.47
7.20
5.41
5.94
5.24
1.05
0.33
0.78
0.31
0.33
2.12
0.82
0.33
4.67
4.55
2.13
2.32
2.25
2.32

5.18
5.44
8.78
5.44
6.15
6.00
11.01
5.44
3.47
3.65
N/A
8.77
6.96
7.03
6.93
6.98
6.18
1.93
1.47
1.85
1.44
1.47
2.77
2.13
1.47
4.67
4.56
2.04
2.22
2.14
2.22

N/A
5.22
8.59
5.22
5.87
5.71
N/A
5.22
N/A
4.02
N/A
9.14
7.77
9.21
6.48
7.00
6.36
N/A
1.84
2.25
1.81
1.84
2.91
2.72
1.84
5.13
4.95
N/A
1.65
N/A
1.65

7.22
7.35
19.09
15.36
7.29
7.26
0.26
8.06
20.25
22.55
14.35
18.76
19.47
N/A
N/A
9.72
10.55
2.28
1.72
6.50
6.24
6.24
5.87
5.59
4.74
6.79
8.01
1.66
1.83
3.51
3.59

10/01/2015
02/01/2024
07/01/2024
07/01/2024
02/01/2024
02/01/2024
06/01/2024
10/01/2024
06/01/2024
10/01/2015
03/01/2024
03/01/2024
02/01/2024
02/01/2024
02/01/2024
10/01/2015
02/01/2024

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.2

148

PARS OPEB and Pension Trust Balanced Strategic Blend
Calendar Year Comparative Performance

Total Portfolio
Blended Benchmark
Domestic Equity
Russell 3000 Index
Dodge & Cox Stock
iShares S&P 500 Value ETF
Columbia Contrarian Core Inst3
Putnam Core Equity Fund Y
Schwab US Large-Cap ETF
Harbor Capital Appreciation Ret
iShares S&P 500 Growth ETF
Natixis Vaughan Nelson Select N
S&P 500
iShares Russell Mid-Cap ETF
Russell Midcap Index
Undisc Managers Behavioral Val R6
Columbia Small Cap Growth Inst3
Emerald Growth Institutional
Russell 2000 Index
International Equity
MSCI AC World ex USA (Net)
MFS International Growth R6
MSCI AC World ex USA (Net)
Fidelity International Index
MSCI EAFE (net)
Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)
Hartford Schroders Emerging Mkts Eq
MSCI EM (net)

2023
15.14
15.19
24.79
25.96
17.48
22.02
32.21
27.99
26.87
53.86
29.80
22.35
26.29
17.07
17.23
14.57
26.39
19.06
16.93
13.98
15.62
14.96
15.62
18.31
18.24
22.15
15.62
9.00
9.83

As of September 30, 2024

2022
-14.89
-14.58
-19.00
-19.21
-7.22
-5.41
-18.45
-15.87
-19.45
-37.67
-29.51
-16.68
-18.11
-17.43
-17.32
-1.10
-36.51
-24.50
-20.44
-15.85
-16.00
-15.02
-16.00
-14.24
-14.45
-11.10
-16.00
-22.14
-20.09

2021
11.36
12.54
23.37
25.66
31.73
24.67
24.45
30.75
26.75
15.74
31.76
39.59
28.71
22.38
22.58
34.50
-2.54
4.04
14.82
4.75
7.82
9.65
7.82
11.45
11.26
12.49
7.82
-4.93
-2.54

Performance(%)
2020
2019
13.46
18.61
13.07
19.78
18.54
29.23
20.89
31.02
7.16
24.83
1.24
31.71
22.44
33.08
17.66
32.50
20.90
31.40
54.56
33.39
33.21
30.91
18.64
27.85
18.40
31.49
16.91
30.31
17.10
30.54
3.62
23.34
70.41
41.18
38.85
28.70
19.96
25.53
14.36
23.80
10.65
21.51
15.82
27.31
10.65
21.51
8.17
22.00
7.82
22.01
15.77
27.64
10.65
21.51
23.78
22.32
18.31
18.42

2018
-4.50
-4.18
-6.15
-5.24
-7.07
-9.09
-8.81
-7.91
-4.53
-0.96
-0.17
-4.62
-4.38
-9.13
-9.06
-15.20
-1.92
-11.57
-11.01
-15.41
-14.20
-8.79
-14.20
-13.52
-13.79
-6.04
-14.20
-15.42
-14.57

2017
15.22
13.54
21.58
21.13
18.33
15.19
21.89
24.01
21.92
36.68
27.20
N/A
21.83
18.32
18.52
13.53
28.94
28.11
14.65
30.23
27.19
32.58
27.19
25.38
25.03
31.76
27.19
N/A
37.28

2016
6.58
8.39
11.33
12.74
21.28
17.17
8.77
13.58
11.77
N/A
6.74
N/A
11.96
13.58
13.80
20.97
13.00
10.89
21.31
3.11
4.50
2.79
4.50
1.34
1.00
N/A
4.50
N/A
11.19

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.3

149

PARS OPEB and Pension Trust Balanced Strategic Blend
Calendar Year Comparative Performance

Other Growth
Cohen & Steers Inst Realty Shares
MSCI US REIT Index
Lazard Global Listed Infrastructure Inst
MSCI World Core Infrastructure Index (Net)
NYLI CBRE Global Infrastructure
FTSE Global Core Infrastructure 50/50 Index (Net)
Fixed Income
Blmbg. U.S. Aggregate
Baird Aggregate Bond Inst
iShares Core US Aggregate Bond ETF
Blmbg. U.S. Aggregate
Dodge & Cox Income
PGIM Total Return Bond R6
Blmbg. U.S. Aggregate
NYLI MacKay High Yield Corp Bond Fund
ICE BofA US High Yield Index
Cash Equivalent
ICE BofA 3 Month U.S. T-Bill
First American Government Obligation - X
ICE BofA 3 Month U.S. T-Bill

2023
N/A
12.72
13.74
10.89
4.01
3.96
2.21
6.91
5.53
6.43
5.59
5.53
7.70
7.78
5.53
11.97
13.46
4.98
5.02
5.00
5.02

As of September 30, 2024

2022
N/A
-24.73
-24.51
-1.30
-7.93
-6.08
-4.87
-12.23
-13.01
-13.35
-13.06
-13.01
-10.87
-14.86
-13.01
-7.81
-11.22
1.48
1.46
1.54
1.46

2021
N/A
42.47
43.06
19.87
17.13
15.22
14.88
-0.72
-1.55
-1.46
-1.67
-1.55
-0.91
-1.15
-1.55
5.35
5.36
0.02
0.05
0.03
0.05

Performance(%)
2020
2019
N/A
N/A
-2.57
33.01
-7.57
25.84
-4.48
22.26
-0.80
26.64
1.17
28.46
-4.06
25.13
7.27
8.22
7.51
8.72
8.63
9.48
7.42
8.68
7.51
8.72
9.45
9.73
8.10
11.14
7.51
8.72
5.28
13.03
6.17
14.41
0.36
2.10
0.67
2.28
0.40
2.12
0.67
2.28

2018
N/A
-3.99
-4.57
-3.73
-2.66
-6.56
-3.99
-0.42
0.01
-0.30
-0.05
0.01
-0.31
-0.63
0.01
-1.34
-2.27
1.72
1.87
1.74
1.87

2017
N/A
7.45
5.07
20.80
19.25
20.48
18.39
5.05
3.54
4.20
3.53
3.54
4.36
6.71
3.54
6.79
7.48
0.57
0.86
0.79
0.86

2016
N/A
5.91
8.60
9.30
10.96
10.13
10.87
3.13
2.65
3.52
2.56
2.65
5.61
4.83
2.65
15.99
17.49
0.27
0.33
N/A
0.33

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.4

150

PARS OPEB and Pension Trust Balanced Strategic Blend
Historical Hybrid Composition - PARS Balanced/Moderately Aggressive

Allocation Mandate
Oct-2012
S&P 500
Blmbg. U.S. Aggregate
Russell 2000 Index
MSCI EAFE (net)
ICE BofA 1-3 Yr. Gov/Corp
Russell Midcap Index
FTSE 1 Month T-Bill
MSCI EM (net)
Wilshire US REIT Index
ICE BofA US High Yield Index

As of September 30, 2024

Weight (%)
32.0
27.0
9.0
7.0
6.8
6.0
5.0
4.0
2.0
1.3

Apr-2007
S&P 500
Blmbg. U.S. Aggregate
MSCI EAFE (net)
ICE BofA 1-3 Yr. Gov/Corp
FTSE 1 Month T-Bill
Russell 2000 Index

51.0
30.0
6.0
5.0
5.0
3.0

Jul-1986
S&P 500
Blmbg. U.S. Aggregate
ICE BofA 1-3 Yr. Gov/Corp
FTSE 1 Month T-Bill

60.0
30.0
5.0
5.0

*The benchmark for the PARS Balanced strategy defined above was assigned to the PARS OPEB and Pension Trust Balanced
Strategic Blend upon its inception on October 2015

2.5

151

Manager Overview

3

152

Portfolio Characteristics

As of September 30, 2024

Dodge & Cox Stock vs. Russell 1000 Value Index
Portfolio Characteristics
Portfolio
277,686
53,813
20.91
2.47
7.92
1.95
82

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
172,125
14,225
20.80
2.85
9.02
2.06
872

Communication Services

4.2
4.7

Consumer Discretionary

7.9
5.3

Energy

6.7

Financials
Health Care

23.3

15.5
13.1

Industrials
6.8

14.7

9.1

3.8
4.6

Real Estate

1.0

Utilities

1.5

Cash

24.1

21.2

Materials

0.0

0.0
Dodge & Cox Stock

Top Ten Holdings

% of Portfolio

6.3

3.1

Consumer Staples

Information Technology

Fiserv Inc.
Schwab (Charles) Corp
RTX Corp
Wells Fargo & Co
Sanofi
MetLife Inc
Johnson Controls International Plc
Occidental Petroleum Corp
CVS Health Corp
Microsoft Corp

11.4

4.9
4.8

2.1

5.0

10.0

15.0

20.0

25.0

30.0

Russell 1000 Value Index

Ten Best Performers

Portfolio
Weight
(%)
3.43
3.41
3.22
3.08
2.92
2.86
2.82
2.44
2.31
2.24

Benchmark
Weight
(%)
0.28
0.34
0.64
0.78
0.00
0.19
0.21
0.14
0.31
0.00

Active
Weight
(%)
3.15
3.07
2.58
2.30
2.92
2.67
2.61
2.30
2.00
2.24

28.73

2.89

25.84

Quarterly
Return
(%)
20.54
-11.70
21.34
-4.16
18.78
18.44
17.33
-17.88
7.68
-3.55

V.F. Corp
EchoStar Corp
Haleon plc
Carrier Global Corp
Bristol-Myers Squibb Co
Fox Corp
Gilead Sciences Inc
SBA Communications Corp
Coherent Corp
Fox Corp
% of Portfolio

Portfolio
Weight
(%)
0.48
0.20
1.20
0.75
0.51
0.83
1.78
0.21
0.51
0.29

Benchmark
Weight
(%)
0.03
0.00
0.00
0.27
0.42
0.04
0.41
0.10
0.05
0.02

Active
Weight
(%)
0.45
0.20
1.20
0.48
0.09
0.79
1.37
0.11
0.46
0.27

6.76

1.34

5.42

Quarterly
Return
(%)
48.53
39.36
28.77
27.60
26.47
23.97
23.33
23.17
22.70
22.03

3.1

153

Portfolio Characteristics

As of September 30, 2024

iShares S&P 500 Value (IVE) vs. S&P 500 Value
Portfolio Characteristics
Portfolio
204,773
34,857
21.56
2.98
7.67
2.19
438

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
205,260
34,832
21.54
2.98
7.67
2.19
438

4.4
4.4
5.3
5.3

Communication Services
Consumer Discretionary

10.2
10.2

Consumer Staples
6.0
6.0

Energy

23.0
23.0

Financials
17.8
17.8

Health Care
11.6
11.7

Industrials
7.9
8.0

Information Technology
3.6
3.6
4.5
4.5
5.5
5.5

Materials
Real Estate
Utilities
Cash

0.3
0.0

0.0
iShares S&P 500 Value (IVE)

Top Ten Holdings

Berkshire Hathaway Inc
JPMorgan Chase & Co
Exxon Mobil Corp
Johnson & Johnson
Walmart Inc
UnitedHealth Group Incorporated
Bank of America Corp
Home Depot Inc. (The)
Chevron Corp
Procter & Gamble Co (The)
% of Portfolio

5.0

10.0

15.0

20.0

25.0

30.0

S&P 500 Value

Ten Best Performers

Portfolio
Weight
(%)
3.99
2.84
2.47
1.85
1.66
1.59
1.27
1.20
1.19
1.18

Benchmark
Weight
(%)
4.00
2.85
2.47
1.85
1.67
1.59
1.27
1.20
1.19
1.18

Active
Weight
(%)
-0.01
-0.01
0.00
0.00
-0.01
0.00
0.00
0.00
0.00
0.00

19.24

19.27

-0.03

Quarterly
Return
(%)
13.14
4.84
2.64
11.72
19.60
15.22
0.44
18.43
-4.81
5.65

Erie Indemnity Co
GE Vernova Inc
Mohawk Industries Inc.
Kellanova
CBRE Group Inc
Stanley Black & Decker Inc
3M Co
PayPal Holdings Inc
Iron Mountain Inc
BXP Inc
% of Portfolio

Portfolio
Weight
(%)
0.03
0.19
0.04
0.10
0.18
0.08
0.36
0.38
0.08
0.06

Benchmark
Weight
(%)
0.03
0.19
0.04
0.10
0.18
0.08
0.36
0.38
0.08
0.06

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

1.50

1.50

0.00

Quarterly
Return
(%)
49.49
48.67
41.46
40.92
39.69
38.98
34.48
34.46
33.40
32.29

3.2

154

Portfolio Characteristics

As of September 30, 2024

Columbia Contrarian Core vs. Russell 1000 Index
Portfolio Characteristics
Portfolio
905,055
120,581
28.83
5.71
18.41
1.17
78

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
894,449
15,165
27.37
4.90
18.62
1.31
1,010

10.4
8.7
7.5
10.4

Communication Services
Consumer Discretionary
5.5
5.7

Consumer Staples
2.9
3.4

Energy

11.8
13.4
11.3
11.5

Financials
Health Care
7.3

Industrials

9.4

Information Technology
Materials
Real Estate
Utilities
Cash

29.8

0.0
Columbia Contrarian Core

Top Ten Holdings

Lam Research Corp
Microsoft Corp
NVIDIA Corporation
Apple Inc
Amazon.com Inc
Meta Platforms Inc
Alphabet Inc
Alphabet Inc
JPMorgan Chase & Co
AbbVie Inc
% of Portfolio

37.0

2.7
2.6
1.2
2.7
1.8
2.4
0.7
0.0

8.0

16.0

24.0

32.0

40.0

48.0

Portfolio
Weight
(%)
0.16
1.15
0.90
1.43
1.02
0.26
0.61
0.95
1.49
1.46

Benchmark
Weight
(%)
0.13
1.38
0.38
0.12
0.17
0.15
0.04
0.08
0.06
0.31

Active
Weight
(%)
0.03
-0.23
0.52
1.31
0.85
0.11
0.57
0.87
1.43
1.15

Quarterly
Return
(%)
48.67
32.22
28.94
28.27
28.15
25.26
24.94
21.95
21.76
21.34

9.43

2.82

6.61

Russell 1000 Index

Ten Best Performers

Portfolio
Weight
(%)
10.50
6.40
6.02
5.77
4.14
2.85
1.85
1.78
1.63
1.58

Benchmark
Weight
(%)
0.20
6.06
5.38
6.42
3.28
2.38
1.85
1.56
1.14
0.66

Active
Weight
(%)
10.30
0.34
0.64
-0.65
0.86
0.47
0.00
0.22
0.49
0.92

42.52

28.93

13.59

Quarterly
Return
(%)
-23.13
-3.55
-1.69
10.75
-3.58
13.64
-8.83
-8.73
4.84
16.20

GE Vernova Inc
Tesla Inc
International Business Machines Corp
Newmont Corporation
Sherwin-Williams Co (The)
Parker-Hannifin Corp
Illumina Inc
Public Service Enterprise Group Inc
eBay Inc.
RTX Corp
% of Portfolio

3.3

155

Portfolio Characteristics

As of September 30, 2024

Putnam US Core Equity Fund vs. Russell 3000 Index
Portfolio Characteristics
Portfolio
883,952
51,713
23.78
4.79
19.43
1.27
122

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
851,765
2,253
26.86
4.70
18.41
1.31
2,987

8.2
8.4
9.8
10.4

Communication Services
Consumer Discretionary
5.8
5.6

Consumer Staples
2.1
3.5

Energy

14.7
13.6

Financials

10.7
11.8

Health Care
5.8

Industrials
Materials
Real Estate
Utilities
Other
Cash

29.0

Putnam US Core Equity Fund

Top Ten Holdings

% of Portfolio

33.4

2.2
2.7
2.6
2.8
2.9
2.4
0.8
0.0
0.9
0.0

0.0

Lam Research Corp
Microsoft Corp
Apple Inc
NVIDIA Corporation
Alphabet Inc
Amazon.com Inc
Meta Platforms Inc
Berkshire Hathaway Inc
Mastercard Inc
Eli Lilly and Co

9.8

Information Technology

8.0

16.0

24.0

32.0

40.0

Quarterly
Return
(%)
44.29
40.06
39.69
37.02
32.22
30.56
30.55
30.08
29.60
28.94

Russell 3000 Index

Ten Best Performers

Portfolio
Weight
(%)
8.28
6.30
6.12
5.05
3.30
3.09
2.76
1.96
1.80
1.71

Benchmark
Weight
(%)
0.19
5.77
6.11
5.12
1.49
3.12
2.26
1.52
0.74
1.28

Active
Weight
(%)
8.09
0.53
0.01
-0.07
1.81
-0.03
0.50
0.44
1.06
0.43

40.37

27.60

12.77

Quarterly
Return
(%)
-23.13
-3.55
10.75
-1.69
-8.73
-3.58
13.64
13.14
12.10
-2.01

Chuy's Holdings Inc
TPG Inc
CBRE Group Inc
Nyxoah S A
Tesla Inc
Fair Isaac Corporation
PulteGroup Inc
Constellation Energy Corp
Highwoods Properties Inc.
International Business Machines Corp
% of Portfolio

Portfolio
Weight
(%)
0.23
0.24
1.21
0.05
0.83
0.34
1.21
0.59
0.17
0.36

Benchmark
Weight
(%)
0.00
0.01
0.07
0.00
1.31
0.08
0.05
0.15
0.01
0.37

Active
Weight
(%)
0.23
0.23
1.14
0.05
-0.48
0.26
1.16
0.44
0.16
-0.01

5.23

2.05

3.18

3.4

156

Portfolio Characteristics

As of September 30, 2024

Schwab US Large-Cap ETF vs. Russell 1000 Index
Portfolio Characteristics

Sector Weights (%)

Portfolio
908,656
22,107
27.62
5.07
19.17
1.28
752

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Benchmark
894,449
15,165
27.37
4.90
18.62
1.31
1,010

8.4
8.7
10.0
10.4

Communication Services
Consumer Discretionary
5.5
5.7

Consumer Staples
3.3
3.4

Energy

12.9
13.4
11.2
11.5

Financials
Health Care
9.0
9.4

Industrials
Information Technology

29.8

Materials
Real Estate
Utilities
Cash

0.1
0.0

0.0
Schwab US Large-Cap ETF

Top Ten Holdings

Apple Inc
Microsoft Corp
NVIDIA Corporation
Amazon.com Inc
Meta Platforms Inc
Lam Research Corp
Alphabet Inc
Berkshire Hathaway Inc
Alphabet Inc
Broadcom Inc
% of Portfolio

32.4

2.4
2.6
2.5
2.7
2.4
2.4

8.0

16.0

24.0

32.0

40.0

Russell 1000 Index

Ten Best Performers

Portfolio
Weight
(%)
6.67
6.02
5.62
3.28
2.35
2.00
1.83
1.59
1.51
1.51

Benchmark
Weight
(%)
6.42
6.06
5.38
3.28
2.38
0.20
1.85
1.60
1.56
1.49

Active
Weight
(%)
0.25
-0.04
0.24
0.00
-0.03
1.80
-0.02
-0.01
-0.05
0.02

32.38

30.22

2.16

Quarterly
Return
(%)
10.75
-3.55
-1.69
-3.58
13.64
-23.13
-8.83
13.14
-8.73
7.78

Exact Sciences Corporation
AppLovin Corporation
Ubiquiti Inc
Erie Indemnity Co
GE Vernova Inc
V.F. Corp
Palantir Technologies Inc
Mohawk Industries Inc.
TransUnion
Liberty Broadband Corp
% of Portfolio

Portfolio
Weight
(%)
0.02
0.05
0.00
0.03
0.13
0.01
0.14
0.02
0.04
0.02

Benchmark
Weight
(%)
0.02
0.06
0.00
0.00
0.13
0.01
0.14
0.02
0.04
0.02

Active
Weight
(%)
0.00
-0.01
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00

0.46

0.44

0.02

Quarterly
Return
(%)
61.23
56.87
52.68
49.49
48.67
48.53
46.86
41.46
41.33
40.99

3.5

157

Portfolio Characteristics

As of July 31, 2024

Harbor Capital Appreciation Fund vs. Russell 1000 Growth Index
Portfolio Characteristics

Sector Weights (%)

Portfolio
1,202,167
165,954
42.75
11.03
28.64
0.43
53

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Benchmark
1,520,756
18,511
37.14
12.57
26.03
0.63
395

Communication Services

14.9
12.6

Consumer Discretionary

14.1
2.8
3.6

Consumer Staples
Energy

19.2

0.0
0.4
7.5
6.3

Financials
Health Care

7.9

11.1

4.5
4.5

Industrials

39.8

Information Technology
Materials
Real Estate
Utilities
Cash

0.0

10.0

Harbor Capital Appreciation Fund

Top Ten Holdings

NVIDIA Corporation
Amazon.com Inc
Microsoft Corp
Apple Inc
Meta Platforms Inc
Broadcom Inc
Eli Lilly and Co
Netflix Inc
Mastercard Inc
Visa Inc
% of Portfolio

49.2

0.0
0.7
0.0
0.6
0.0
0.2
0.3
0.0

20.0

30.0

40.0

50.0

60.0

Russell 1000 Growth Index

Ten Best Performers

Portfolio
Weight
(%)
8.88
8.63
8.25
5.80
4.94
4.91
4.12
3.08
2.67
2.54

Benchmark
Weight
(%)
10.55
6.59
11.80
12.24
3.95
2.77
2.59
1.02
1.45
1.59

Active
Weight
(%)
-1.67
2.04
-3.55
-6.44
0.99
2.14
1.53
2.06
1.22
0.95

53.82

54.55

-0.73

Quarterly
Return
(%)
35.45
6.85
7.64
30.56
10.49
23.98
3.14
14.11
2.93
-0.91

NVIDIA Corporation
Apple Inc
Tesla Inc
Vertex Pharmaceuticals Inc
Broadcom Inc
Moody's Corp.
TJX Companies Inc (The)
Goldman Sachs Group Inc (The)
Intuitive Surgical Inc
Adobe Inc
% of Portfolio

Portfolio
Weight
(%)
8.88
5.80
2.54
1.84
4.91
0.79
0.82
0.64
1.52
1.22

Benchmark
Weight
(%)
10.55
12.24
2.45
0.24
2.77
0.27
0.29
0.16
0.60
0.94

Active
Weight
(%)
-1.67
-6.44
0.09
1.60
2.14
0.52
0.53
0.48
0.92
0.28

28.96

30.51

-1.55

Quarterly
Return
(%)
35.45
30.56
26.62
26.20
23.98
23.52
20.58
20.02
19.96
19.19

3.6

158

Portfolio Characteristics

As of September 30, 2024

iShares S&P 500 Growth ETF (IVW) vs. S&P 500 Growth
Portfolio Characteristics

Sector Weights (%)

Portfolio
1,581,606
51,004
35.85
10.94
27.35
0.64
234

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Benchmark
1,583,787
51,004
35.85
10.94
27.35
0.64
233

12.2
12.3
13.7
13.8

Communication Services
Consumer Discretionary
2.6
2.6
1.2
1.3

Consumer Staples
Energy

5.2
5.2
6.8
6.9
6.1
6.1

Financials
Health Care
Industrials

49.7
49.8

Information Technology
Materials
Real Estate
Utilities
Cash

1.2
1.2
0.7
0.7
0.3
0.3
0.1
0.0

0.0

10.0

iShares S&P 500 Growth ETF (IVW)

Top Ten Holdings

Apple Inc
Microsoft Corp
NVIDIA Corporation
Amazon.com Inc
Meta Platforms Inc
Alphabet Inc
Alphabet Inc
Broadcom Inc
Tesla Inc
Eli Lilly and Co
% of Portfolio

20.0

30.0

40.0

50.0

60.0

S&P 500 Growth

Ten Best Performers

Portfolio
Weight
(%)
12.80
11.55
10.79
6.29
4.52
3.51
2.90
2.90
2.62
2.52

Benchmark
Weight
(%)
12.81
11.57
10.81
6.30
4.52
3.51
2.90
2.90
2.63
2.53

Active
Weight
(%)
-0.01
-0.02
-0.02
-0.01
0.00
0.00
0.00
0.00
-0.01
-0.01

60.40

60.48

-0.08

Quarterly
Return
(%)
10.75
-3.55
-1.69
-3.58
13.64
-8.83
-8.73
7.78
32.22
-2.01

Erie Indemnity Co
GE Vernova Inc
Palantir Technologies Inc
Builders FirstSource Inc
Vistra Corp
Axon Enterprise Inc
D.R. Horton Inc
Iron Mountain Inc
Tesla Inc
Fair Isaac Corporation
% of Portfolio

Portfolio
Weight
(%)
0.03
0.11
0.27
0.08
0.15
0.10
0.20
0.06
2.62
0.17

Benchmark
Weight
(%)
0.03
0.11
0.27
0.08
0.15
0.10
0.20
0.06
2.63
0.17

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
0.00

3.79

3.80

-0.01

Quarterly
Return
(%)
49.49
48.67
46.86
40.06
38.15
35.81
35.59
33.40
32.22
30.56

3.7

159

Portfolio Characteristics

As of August 31, 2024

Natixis Vaughan Nelson Select vs. Russell 3000 Index
Portfolio Characteristics
Portfolio
748,270
87,941
30.38
4.33
32.91
0.75
27

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
830,898
2,285
26.27
4.63
18.68
1.32
2,981

Communication Services

9.3
8.2

Consumer Discretionary

9.9
1.2

Consumer Staples

12.3

5.6
3.6
3.7

Energy
Financials

14.0

Health Care

8.0

Industrials

8.1

18.9

12.3
9.7

Information Technology

28.8

Materials

2.6

Real Estate

0.0

Utilities

0.0

Cash

2.8

2.3
1.0
0.0

0.0

8.0

Natixis Vaughan Nelson Select

Top Ten Holdings

Microsoft Corp
NVIDIA Corporation
Monolithic Power Systems Inc
Amazon.com Inc
Alphabet Inc
Zoetis Inc
JPMorgan Chase & Co
Intercontinental Exchange Inc
Berkshire Hathaway Inc
ON Semiconductor Corp
% of Portfolio

31.0

6.7

16.0

24.0

32.0

40.0

Russell 3000 Index

Ten Best Performers

Portfolio
Weight
(%)
6.98
6.65
6.46
5.66
5.58
4.74
4.73
4.71
4.34
4.23

Benchmark
Weight
(%)
5.69
5.21
0.08
3.04
1.76
0.15
1.18
0.17
1.60
0.06

Active
Weight
(%)
1.29
1.44
6.38
2.62
3.82
4.59
3.55
4.54
2.74
4.17

54.08

18.94

35.14

Quarterly
Return
(%)
0.66
8.89
27.25
1.17
-5.18
8.48
11.56
21.05
14.85
6.61

Coca Cola Consolidated Inc
ServiceNow Inc
Kinsale Capital Group Inc
Monolithic Power Systems Inc
Sherwin-Williams Co (The)
Intercontinental Exchange Inc
O'Reilly Automotive Inc
DoorDash Inc
Berkshire Hathaway Inc
JPMorgan Chase & Co
% of Portfolio

Portfolio
Weight
(%)
1.17
3.35
3.57
6.46
3.40
4.71
4.11
2.50
4.34
4.73

Benchmark
Weight
(%)
0.01
0.32
0.02
0.08
0.16
0.17
0.12
0.08
1.60
1.18

Active
Weight
(%)
1.16
3.03
3.55
6.38
3.24
4.54
3.99
2.42
2.74
3.55

38.34

3.74

34.60

Quarterly
Return
(%)
36.90
30.15
28.05
27.25
21.83
21.05
17.31
16.89
14.85
11.56

3.8

160

Portfolio Characteristics

As of September 30, 2024

iShares Russell Mid-Cap vs. Russell Midcap Index
Portfolio Characteristics
Portfolio
26,109
11,202
21.79
3.13
12.81
1.60
813

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
26,176
11,205
21.76
3.13
12.81
1.60
811

3.4
3.4

Communication Services

10.9
10.9

Consumer Discretionary
5.0
5.0
4.9
5.0

Consumer Staples
Energy

15.5
15.7

Financials
10.2
10.2

Health Care

17.4
17.4

Industrials
12.5
12.5

Information Technology
5.9
5.9

Materials

8.2
8.2

Real Estate
5.8
5.8

Utilities
Cash

0.2
0.0

0.0
iShares Russell Mid-Cap

Top Ten Holdings

Palantir Technologies Inc
Aflac Incorporated
Arthur J. Gallagher & Co.
Hilton Worldwide Holdings Inc
D.R. Horton Inc
Williams Cos Inc. (The)
Realty Income Corp
Simon Property Group Inc
United Rentals Inc.
ONEOK Inc
% of Portfolio

4.0

8.0

12.0

16.0

20.0

24.0

Russell Midcap Index

Ten Best Performers

Portfolio
Weight
(%)
0.64
0.53
0.52
0.48
0.48
0.47
0.47
0.46
0.46
0.45

Benchmark
Weight
(%)
0.64
0.53
0.52
0.48
0.48
0.47
0.47
0.47
0.46
0.45

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
0.00
0.00

4.96

4.97

-0.01

Quarterly
Return
(%)
46.86
25.78
8.73
5.71
35.59
8.55
21.73
12.75
25.49
13.10

Exact Sciences Corporation
Inspire Medical Systems Inc
AppLovin Corporation
Doximity Inc
Ubiquiti Inc
Vornado Realty Trust
V.F. Corp
Palantir Technologies Inc
SharkNinja Inc
Mohawk Industries Inc.
% of Portfolio

Portfolio
Weight
(%)
0.11
0.05
0.29
0.05
0.01
0.06
0.06
0.64
0.06
0.07

Benchmark
Weight
(%)
0.11
0.05
0.29
0.05
0.01
0.06
0.06
0.64
0.06
0.07

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

1.40

1.40

0.00

Quarterly
Return
(%)
61.23
57.70
56.87
55.77
52.68
49.87
48.53
46.86
44.66
41.46

3.9

161

Portfolio Characteristics

As of September 30, 2024

Undiscovered Managers Behavioral Value vs. Russell 2000 Value Index
Portfolio Characteristics
Portfolio
6,902
4,133
15.54
1.78
4.23
2.44
102

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
2,842
782
14.21
1.65
6.67
2.13
1,438

Communication Services

0.4

Consumer Discretionary

3.4
4.6
3.6
2.3
4.4

Consumer Staples
Energy

10.0

7.2

Financials

28.0

Health Care
Industrials

19.1

12.2
0.8

Information Technology
Materials

5.8
11.6

5.1
6.4

Real Estate
Utilities
Cash

30.9

9.0
9.3

5.3

11.5
9.2

0.0
0.0

0.0

6.0

12.0

18.0

24.0

30.0

36.0

Undiscovered Managers Behavioral Value
Russell 2000 Value Index

Top Ten Holdings

KeyCorp
Healthpeak Properties Inc
Old National Bancorp
Citizens Financial Group Inc
Berry Global Group Inc
Graphic Packaging Holding Co
F.N.B. Corp
DENTSPLY SIRONA Inc
Devon Energy Corp
ICU Medical Inc
% of Portfolio

Ten Best Performers

Portfolio
Weight
(%)
4.10
3.32
3.20
3.02
2.92
2.88
2.84
2.80
2.66
2.50

Benchmark
Weight
(%)
0.00
0.00
0.44
0.00
0.00
0.00
0.00
0.00
0.00
0.30

Active
Weight
(%)
4.10
3.32
2.76
3.02
2.92
2.88
2.84
2.80
2.66
2.20

30.24

0.74

29.50

Quarterly
Return
(%)
19.32
18.37
9.35
15.11
15.98
13.27
4.01
9.27
-16.55
53.45

ICU Medical Inc
Hanesbrands Inc
Frontdoor Inc
Mercury Systems Inc
Valley National Bancorp
Cushman & Wakefield Ltd
Crown Holdings Inc
Granite Construction Inc
Dun & Bradstreet Corp (The)
Silgan Holdings Inc
% of Portfolio

Portfolio
Weight
(%)
2.50
0.90
0.39
0.43
0.76
0.28
0.86
1.81
0.90
0.63

Benchmark
Weight
(%)
0.30
0.00
0.00
0.15
0.30
0.24
0.00
0.05
0.00
0.00

Active
Weight
(%)
2.20
0.90
0.39
0.28
0.46
0.04
0.86
1.76
0.90
0.63

9.46

1.04

8.42

Quarterly
Return
(%)
53.45
49.09
42.02
37.09
31.47
31.06
29.25
28.14
24.82
24.48

3.10

162

Portfolio Characteristics

As of September 30, 2024

Columbia Small Cap Growth vs. Russell 2000 Growth Index
Portfolio Characteristics
Portfolio
7,277
4,826
35.11
5.07
13.52
0.33
97

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
4,131
1,176
24.08
4.27
17.81
0.59
1,120

2.2
2.0

Communication Services
Consumer Discretionary

10.1

12.3

2.6
3.2
2.8
3.4

Consumer Staples
Energy

5.4

Financials

8.2

Health Care
Industrials

21.8
17.4

Information Technology

Utilities
Cash

0.9
1.6
0.0
0.5
1.0
0.0

0.0
Columbia Small Cap Growth

Top Ten Holdings

FTAI Aviation Ltd
Carpenter Technology Corp
ICU Medical Inc
Bio-Techne Corp
Onto Innovation Inc
Chemed Corp
XPO Inc
Glaukos Corp
RBC Bearings Inc
AZEK Company Inc (The)
% of Portfolio

19.6

4.7
3.9

Materials
Real Estate

26.7
25.6
23.9

6.0

12.0

18.0

24.0

30.0

36.0

Russell 2000 Growth Index

Ten Best Performers

Portfolio
Weight
(%)
3.56
2.98
2.84
2.80
2.78
2.64
2.64
2.61
2.60
2.33

Benchmark
Weight
(%)
1.00
0.56
0.00
0.00
0.00
0.00
0.00
0.47
0.00
0.00

Active
Weight
(%)
2.56
2.42
2.84
2.80
2.78
2.64
2.64
2.14
2.60
2.33

27.78

2.03

25.75

Quarterly
Return
(%)
29.11
45.83
53.45
11.68
-5.47
10.86
1.28
10.08
10.97
11.08

Zeta Global Holdings Corp
ICU Medical Inc
Vaxcyte Inc
Carpenter Technology Corp
Biohaven Ltd
Impinj Inc
Zillow Group Inc
Hamilton Lane Inc
Lantheus Holdings Inc
Cogent Communications Holdings Inc
% of Portfolio

Portfolio
Weight
(%)
0.91
2.84
1.11
2.98
0.58
0.53
0.93
1.69
0.66
1.26

Benchmark
Weight
(%)
0.39
0.00
1.01
0.56
0.28
0.37
0.00
0.48
0.56
0.25

Active
Weight
(%)
0.52
2.84
0.10
2.42
0.30
0.16
0.93
1.21
0.10
1.01

13.49

3.90

9.59

Quarterly
Return
(%)
69.01
53.45
51.33
45.83
43.96
38.11
37.50
36.70
36.69
36.35

3.11

163

Portfolio Characteristics

As of September 30, 2024

Emerald Growth Fund vs. Russell 2000 Growth Index
Portfolio Characteristics
Portfolio
4,561
2,978
29.35
4.14
12.25
0.46
122

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
4,131
1,176
24.08
4.27
17.81
0.59
1,120

1.4
2.0

Communication Services

7.2

Consumer Discretionary

10.1

4.0
3.2
2.8
3.4

Consumer Staples
Energy
Financials

8.2

14.0
24.7
25.6

Health Care
15.7

Industrials

21.8

Information Technology

19.6

Materials

3.9

0.0
0.5

Utilities

0.0

5.0

Emerald Growth Fund

FTAI Aviation Ltd
Freshpet Inc
Carpenter Technology Corp
Credo Technology Group Holding Ltd
Q2 Holdings Inc
RadNet Inc
Palomar Holdings Inc
Varonis Systems Inc
Insmed Inc
AeroVironment Inc
% of Portfolio

5.4

1.3
1.6

Real Estate

Top Ten Holdings

23.5

10.0

15.0

20.0

25.0

30.0

Russell 2000 Growth Index

Ten Best Performers

Portfolio
Weight
(%)
3.12
2.75
2.47
1.99
1.96
1.92
1.88
1.87
1.81
1.78

Benchmark
Weight
(%)
1.00
0.00
0.56
0.29
0.35
0.34
0.17
0.46
0.85
0.39

Active
Weight
(%)
2.12
2.75
1.91
1.70
1.61
1.58
1.71
1.41
0.96
1.39

21.55

4.41

17.14

Quarterly
Return
(%)
29.11
5.70
45.83
-3.57
32.22
17.77
16.66
17.78
8.95
10.07

Clear Secure Inc
Applied Optoelectronics Inc
Travere Therapeutics Inc
Wave Life Sciences Ltd
Avid Bioservices Inc
Carpenter Technology Corp
Baldwin Insurance Group Inc (The)
LendingTree Inc
Portillos Inc
Impinj Inc
% of Portfolio

Portfolio
Weight
(%)
0.14
0.31
0.76
0.90
0.64
2.47
1.76
0.76
0.69
1.67

Benchmark
Weight
(%)
0.21
0.00
0.00
0.04
0.05
0.56
0.24
0.04
0.04
0.37

Active
Weight
(%)
-0.07
0.31
0.76
0.86
0.59
1.91
1.52
0.72
0.65
1.30

10.10

1.55

8.55

Quarterly
Return
(%)
77.71
72.62
70.19
64.33
59.38
45.83
40.40
39.53
38.58
38.11

3.12

164

Portfolio Characteristics

As of September 30, 2024

MFS International Growth vs. MSCI AC World ex USA Growth (Net)
Portfolio Characteristics
Portfolio
145,744
35,379
21.84
3.47
10.40
1.92
85

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
145,294
10,270
22.35
3.87
13.85
1.64
1,188

2.8

Communication Services

5.9
12.0

Consumer Discretionary
Consumer Staples

14.4

12.3

8.2
1.1
2.0

Energy

10.2

Financials
Health Care

11.5
11.6
12.5
18.4
18.0
18.7
19.4

Industrials
Information Technology
Materials
Real Estate
Utilities
Cash

0.0
0.8
0.4
1.0
0.9
0.0

0.0

4.0

8.0

MFS International Growth

SAP SE
Schneider Electric S E
Hitachi Ltd
Taiwan Semicon Manu Co
Roche Holding AG
Nestle SA, Cham Und Vevey
LVMH Moet Hennessy Louis Vui
Linde Plc
Heineken NV
AIA Group Ltd
% of Portfolio

34.14

Benchmark
Weight
(%)
1.68
1.02
0.86
5.25
0.08
1.21
1.49
0.00
0.18
0.46
12.23

12.0

16.0

20.0

24.0

MSCI AC World ex USA Growth (Net)

Top Ten Holdings
Portfolio
Weight
(%)
5.16
4.34
4.27
3.49
3.41
3.38
2.70
2.54
2.52
2.33

11.5

6.2

Region Weights (%)
Active
Weight
(%)
3.48
3.32
3.41
-1.76
3.33
2.17
1.21
2.54
2.34
1.87

Quarterly
Return
(%)
12.31
9.66
18.08
1.99
15.53
-1.33
0.47
8.99
-7.39
33.18

14.8

EM Asia
EM Europe + Middle East + Africa

0.0

23.6

3.4

1.8
2.5

EM Latin America
EMU

21.0

Europe ex EMU

20.4
19.5

Middle East

0.0
0.5
6.6
7.4

North America

17.4

Pacific

22.0

Other

0.5
0.0

Cash

0.9
0.0

21.91

0.0
MFS International Growth

37.6

15.0

30.0

45.0

60.0

MSCI AC World ex USA Growth (Net)

3.13

165

Portfolio Characteristics

As of September 30, 2024

Fidelity International Index Fund vs. MSCI EAFE (net)
Portfolio Characteristics
Portfolio
93,847
15,789
15.16
2.64
9.40
3.04
733

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
95,567
15,784
15.17
2.64
9.43
3.04
732

4.2
4.3

Communication Services

10.8
11.0

Consumer Discretionary
8.5
8.7

Consumer Staples
3.6
3.6

Energy

20.3
20.6

Financials
13.1
13.3

Health Care

17.1
17.3

Industrials
8.6
8.7

Information Technology
6.6
6.8

Materials
2.1
2.2

Real Estate

3.3
3.4

Utilities
Cash

0.0

1.7

0.0

5.0

Fidelity International Index Fund

Top Ten Holdings

Novo Nordisk A/S
ASML Holding NV
CASH
Nestle SA, Cham Und Vevey
Astrazeneca PLC
SAP SE
Novartis AG
Roche Holding AG
LVMH Moet Hennessy Louis Vui
Shell Plc
% of Portfolio

Portfolio
Weight
(%)
2.13
1.87
1.65
1.48
1.36
1.34
1.28
1.27
1.19
1.15
14.72

Benchmark
Weight
(%)
2.16
1.90
0.00
1.50
1.37
1.36
1.29
1.28
1.21
1.17
13.24

10.0

15.0

20.0

25.0

40.0

48.0

MSCI EAFE (net)

Region Weights (%)
Active
Weight
(%)
-0.03
-0.03
1.65
-0.02
-0.01
-0.02
-0.01
-0.01
-0.02
-0.02
1.48

Quarterly
Return
(%)
-18.19
-19.32
N/A
-1.33
0.13
12.31
7.61
15.53
0.47
-8.34

32.9

EMU

33.6
31.5

Europe ex EMU

31.9
0.8

Middle East

0.8
33.1

Pacific
Other
Cash

33.6
0.1
0.1
1.7
0.0

0.0

8.0

Fidelity International Index Fund

16.0

24.0

32.0

MSCI EAFE (net)

3.14

166

Portfolio Characteristics

As of June 30, 2024

Goldman Sachs GQG Ptnrs Intl Opportunities vs. MSCI AC World ex USA (Net)
Portfolio Characteristics
Portfolio
332,297
80,043
19.78
3.86
19.35
2.85
71

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
112,367
9,176
16.27
2.57
10.28
3.02
2,159

Communication Services

5.3

6.6

2.7

Consumer Discretionary

11.1

Consumer Staples

9.2

7.2

Energy

11.8

5.5

12.7

Financials
Health Care

9.5
9.8

Industrials
Information Technology
0.0

17.2

7.1

1.8

Utilities
Cash

13.7
14.0

3.0

Materials
Real Estate

21.7
15.3

6.6

3.1
5.0

0.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

32.0

40.0

Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)

Top Ten Holdings

Novo Nordisk A/S
CASH
Astrazeneca PLC
TotalEnergies SE
NVIDIA Corporation
ASML Holding NV
SAP SE
Taiwan Semicon Manu Co
Glencore Plc
Adani Power Ltd

Region Weights (%)

Portfolio
Weight
(%)
7.93
5.00
4.78
4.09
3.59
3.25
2.69
2.61
2.59
2.52

Benchmark
Weight
(%)
1.81
0.00
0.93
0.55
0.00
1.59
0.81
2.82
0.23
0.03

Active
Weight
(%)
6.12
5.00
3.85
3.54
3.59
1.66
1.88
-0.21
2.36
2.49

39.05

8.77

30.28

Quarterly
Return
(%)
13.26
N/A
15.79
-1.30
36.74
7.46
5.51
22.80
4.88
34.64

22.3
22.4

EM Asia
1.0

EM Europe + Middle East + Africa
EM Latin America
EMU

21.7

Europe ex EMU
Middle East

20.5

24.6
24.3

0.0
0.5

North America

7.5

15.8

2.0

Pacific
Other

0.0
0.1

Cash

0.0

0.0

% of Portfolio

3.4
5.1

2.1

21.8

5.0

8.0

16.0

24.0

Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)

3.15

167

Portfolio Characteristics

As of September 30, 2024

Hartford Schroders Emerging Markets Equity vs. MSCI EM (net)
Portfolio Characteristics
Portfolio
178,371
19,740
16.66
3.02
18.76
2.58
113

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
153,637
8,155
15.68
2.93
14.67
2.59
1,277

9.0
9.4

Communication Services

13.6
14.0

Consumer Discretionary
5.1
5.2
4.7
4.8

Consumer Staples
Energy

23.5
22.8

Financials
2.4
3.6

Health Care

6.4
6.8

Industrials
Information Technology

22.2
2.4

Materials
Real Estate
Utilities
Cash

26.9

6.6

0.6
1.6
1.8
2.9
3.5
0.0

0.0

6.0

12.0

18.0

24.0

30.0

36.0

100.0

125.0

Hartford Schroders Emerging Markets Equity
MSCI EM (net)

Top Ten Holdings

Taiwan Semicon Manu Co
Tencent Holdings LTD
Samsung Electronics Co Ltd
CASH
Meituan
Icici Bank Ltd
Alibaba Group Holding Ltd
Axis Bank Ltd
Tata Consultancy Services Ltd
Reliance Industries Ltd

Region Weights (%)

Portfolio
Weight
(%)
10.77
6.34
4.24
3.45
2.80
2.35
2.29
1.91
1.67
1.62

Benchmark
Weight
(%)
9.00
4.53
2.71
0.00
1.33
0.96
2.60
0.41
0.56
1.30

Active
Weight
(%)
1.77
1.81
1.53
3.45
1.47
1.39
-0.31
1.50
1.11
0.32

37.44

23.40

14.04

Quarterly
Return
(%)
1.99
20.00
-20.57
N/A
55.61
6.49
56.83
-3.02
9.05
-5.82

70.6
77.1

EM Asia
EM Europe + Middle East + Africa

9.0
11.6

EM Latin America

11.1
7.5

EMU

1.2
1.3

Europe ex EMU

0.5
0.0

North America

0.0
0.3

Pacific

3.8
2.1

Other

0.5
0.0

Cash

3.5
0.0

0.0

% of Portfolio

25.0

50.0

75.0

Hartford Schroders Emerging Markets Equity
MSCI EM (net)

3.16

168

Portfolio Characteristics
Cohen & Steers Institutional Realty Shares

As of September 30, 2024

Portfolio Characteristics
Net Assets ($ millions)
Inception Date

Top 10 Holdings
7,940
2/14/2000

Portfolio

American Tower Corporation

Telecommunications

United States

9.30%

Welltower, Inc.

Health Care

United States

8.70%

Gross Expense Ratio

0.76%

Digital Realty Trust, Inc.

Data Centers

United States

7.10%

Net Expense Ratio

0.75%

Prologis, Inc.

Industrial

United States

6.80%

Number of Holdings

33

Crown Castle International Corp.

Telecommunications

United States

6.10%

Simon Property Group, Inc.

Regional Mall

United States

5.80%

Turnover Rate

32%

Wgt. Avg. Market Cap. ($ millions)

38,610

Equinix, Inc.

Data Centers

United States

4.60%

12-Month Distribution Yield

2.75%

Iron Mountain Incorporated

Specialty

United States

4.30%

30-Day SEC Yield

1.97%

Invitation Homes, Inc.

Single Family Homes

United States

3.60%

Sun Communities, Inc.

Manufactured Homes

United States

3.40%

Geographic Exposure

Sector Exposure vs. Benchmark 1
18%

16%

16%
13%

14%
12%

United States,
100%

10%
8%
6%
4%
2%
0%

12%
9%
6%

13%

12%

9%

12%

6%

9%

6%

8%

5%

4%

5%

2%

Cohen & Steers Institutional Realty Shares

4%

2%

4%
4%

3%

2%

3%
2%

3%
3%

2%

6%

1%

2%
5%

3%

Benchmark: FTSE Nareit All Equity REIT Index

(1) Cohen & Steers uses the FTSE Nareit All Equity REIT Index as its preferred benchmark for this strategy.

3.17

169

Portfolio Characteristics
Lazard Global Listed Infrastructure Portfolio

As of September 30, 2024

Portfolio Characteristics

Top 10 Holdings

Net Assets ($ millions)

9,100

Inception Date

12/31/2009

Portfolio

National Grid

Diversified Utilities

United Kingdom

9.17%

Ferrovial

Toll Roads

Spain

8.77%

Gross Expense Ratio

0.97%

Snam

Gas Utilities

Italy

6.81%

Net Expense Ratio

0.97%

United Utilities

Water Utilities

United Kingdom

4.88%

Number of Holdings

27

Severn Trent

Water Utilities

United Kingdom

4.86%

28%

Terna

Electricity Utilities

Italy

4.85%

Wgt. Avg. Market Cap. ($ millions)

30,200

Exelon

Diversified Utilities

United States

4.83%

Dividend Yield

4.50%

Norfolk Southern

Railroads

United States

4.68%

VINCI

Toll Roads

France

4.59%

CSX

Railroads

United States

4.51%

Turnover Rate

Sector Exposure vs. Benchmark1

Geographic Exposure

Hong Kong, 5%

30%

RoW, 6%

25%

UK, 20%

25%
21%

France,
6%

20%

Austr.,
7%

10%

15%

11%

11%

10%

9%

8%
3%

5%

Cash,
8%
Spain,
10%

USA, 19%

15%

6%

16%

6%

15%

8%

14%

2%
5%

15%

0%

Italy,
18%
Lazard Global Listed Infrastructure

Benchmark: MSCI World Core Infrastructure Index

(1) Lazard uses the MSCI World Core Infrastructure Index as its preferred benchmark for this strategy.

3.18

170

Portfolio Characteristics
NYLI CBRE Global Infrastructure Fund

As of September 30, 2024

Portfolio Characteristics

Top 10 Holdings

Net Assets ($ millions)

896

Inception Date

6/28/2013

Portfolio

WEC Energy Group, Inc.

Regulated Electric

United States

4.40%

CSX Corporation

Rail

United States

4.30%

Gross Expense Ratio (Class I)

1.03%

Targa Resources Corp.

Midstream / Pipelines

United States

4.30%

Net Expense Ratio (Class I)

0.97%

Atmos Energy Corp.

Gas Distribution

United States

4.00%

49

Pembina Pipeline Corp.

Midstream / Pipelines

Canada

3.70%

47%

Number of Holdings
Turnover Rate

American Tower Corp.

Communications

United States

3.70%

Wgt. Avg. Market Cap. ($ millions)

38,400

PG&E Corp.

Regulated Electric

United States

3.60%

12-Month Distribution Yield

2.07%

Equinix, Inc.

Communications

United States

3.30%

30-Day SEC Yield

2.08%

Vinci S.A.

Toll Roads

France

3.30%

PPL Corp.

Regulated Electric

United States

3.20%

Geographic Exposure
Hong Kong, 2%

Sector Exposure
35%

Switzerland, 1%
RoW, 5%

30%

30%

Japan, 2%

25%

China, 2%

20%

Italy, 3%

15%

France, 4%

10%
UK, 4%

11%

10%

10%

9%

7%

7%

6%

5%

5%

5%

Spain, 6%
USA, 63%

0%

Canada, 8%

NYLI CBRE Global Infrastructure Fund

3.19 171

Portfolio Characteristics

As of September 30, 2024

Baird Aggregate vs. Blmbg. U.S. Aggregate
Portfolio Characteristics

Credit Quality Distribution (%)

Portfolio
6.20
4.49
8.15
AA
3.58

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

72.7

52.6

50.0

25.0

21.3
12.6

12.6

12.5

11.5

3.4

0.2

0.0

aa
/A
A
AA

a
/A
AA

aa
/B
B
BB

A

Baird Aggregate

0.7

0.0

a
/B
BB
C

h
as

0.0

NR
or

Blmbg. U.S. Aggregate

Sector Distribution (%)
80.0

60.0
47.4

40.0

37.0
30.7

28.4

26.9

24.6

20.0
0.8

0.0

0.0

G

&
't
ov

d
te
la
e
R

Baird Aggregate

a
oc
i/L
n
u
M

y
ri t
ho
t
u
lA

3.0

0.5

0.2

S
AB
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
gh
Hi

d
el
Yi

0.7

0.0

s
rp
Co
C

O
h/
as

0.0

er
th

Blmbg. U.S. Aggregate

3.20 172

Portfolio Characteristics

As of September 30, 2024

iShares Core U.S. Aggregate Bond ETF vs. Blmbg. U.S. Aggregate
Portfolio Characteristics
Portfolio
6.19
4.25
8.37
AA
3.41

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Credit Quality Distribution (%)
Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

70.7

72.7

50.0

25.0
11.9
3.2

0.0

11.5

12.8

12.5

3.4

aa
/A
A
AA

1.3

a
/A
AA

A

aa
/B
B
BB

C

h
as

0.0

NR
or

iShares Core U.S. Aggregate Bond ETF
Blmbg. U.S. Aggregate

Sector Distribution (%)
80.0

60.0
46.3

47.4

40.0
26.7

26.9

25.5

24.6

20.0
0.6

0.0

G

&
't
ov

d
te
la
e
R
a
oc
i/L
n
u
M

y
ri t
ho
t
u
lA

iShares Core U.S. Aggregate Bond ETF

0.8

0.5

0.5

0.5

S
AB
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
C

O
h/
as

0.0

er
th

Blmbg. U.S. Aggregate

3.21

173

Portfolio Characteristics

As of September 30, 2024

Dodge & Cox Income vs. Blmbg. U.S. Aggregate
Portfolio Characteristics

Credit Quality Distribution (%)

Portfolio
6.30
4.70
9.60
A
N/A

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

72.7
64.6

50.0

25.0

21.0
12.5

11.5

0.0

7.1

3.4

1.8

aa
/A
A
AA

a
/A
AA

2.8

aa
/B
B
BB

A

Dodge & Cox Income

0.0

2.1

a
/B
BB

0.6

0.0

B
C

h
as

0.0

NR
or

Blmbg. U.S. Aggregate

Sector Distribution (%)
80.0

60.0
47.4

44.4

40.0
26.9

24.9

21.1

20.0

0.8

0.0

0.0

G

&
't
ov

d
te
la
e
R
a
oc
i/L
n
u
M

Dodge & Cox Income

y
ri t
ho
t
u
lA

24.6

4.9

4.0

0.5

0.7

0.0

S
AB
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
gh
Hi

d
el
Yi

s
rp
Co
C

O
h/
as

0.0

er
th

Blmbg. U.S. Aggregate

3.22 174

Portfolio Characteristics

As of September 30, 2024

PGIM Total Return Bond vs. Blmbg. U.S. Aggregate
Portfolio Characteristics

Credit Quality Distribution (%)

Portfolio
6.35
5.69
7.35
AA
4.39

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

72.7

50.0
31.8

31.5

25.0
15.3

9.9 11.5

12.5
5.7

3.4

aa
/A
A
AA

2.4

0.0

0.0

a
/A
AA

A

aa
/B
B
BB

PGIM Total Return Bond

a
/B
BB

0.0

B

1.0 0.0

2.5

B

NR
or

w
lo
Be

C

h
as

0.0

Blmbg. U.S. Aggregate

Sector Distribution (%)
75.0

50.0

47.4
30.2

25.0

26.9

24.2

20.6

24.6

11.0

7.6
1.2

0.0

0.8

2.1

0.5

0.0

2.3

0.0

0.8

0.0

0.0

0.0
0.0

-25.0

G

't
ov

&

d
te
la
e
R
un
M

a
oc
i/L

y
ri t
ho
t
u
lA

PGIM Total Return Bond

S
AB

C

LO
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
gh
Hi

d
el
Yi

s
rp
Co
Em

g

k
ar
M

s
et
N

.D
.S
U
on

ev
C

O
h/
as

er
th

Blmbg. U.S. Aggregate

3.23

175

Portfolio Characteristics

As of September 30, 2024

NYLI MacKay High Yield Corp Bond Fund vs. ICE BofA US High Yield Index
Portfolio Characteristics
Portfolio
2.83
6.81
4.48
BB
6.09

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Credit Quality Distribution (%)
Benchmark
2.97
7.22
4.73
B
6.37

80.0

60.0

53.6
45.9

40.0

32.1 34.0

20.0
12.5
7.9

0.0

0.1

0.0

a
/A
AA

0.3

0.0

A

7.3

6.7
0.0

aa
/B
B
BB

0.0

a
/B
BB

B

w
lo
Be

B
C

h
as

NR
or

NYLI MacKay High Yield Corp Bond Fund
ICE BofA US High Yield Index

Sector Distribution (%)
150.0

100.0

100.0

88.1

50.0

7.5

4.4

0.0

0.0

v
In

G

de
ra

C

p
or

NYLI MacKay High Yield Corp Bond Fund

gh
Hi

d
el
Yi

0.0

s
rp
Co
C

O
h/
as

er
th

ICE BofA US High Yield Index

3.24

176

IMPORTANT DISCLOSURES
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was
prepared without regard to any specific objectives or financial circumstances.
Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities
and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National
Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee
the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable
regulatory information is available upon request.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is
obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its
accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the
custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we
disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be
recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When
average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated
by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of
investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index
returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of
these fees and charges would cause investment performance to be lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change.
Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain
assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report.
Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes
in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected
performance.
For more information regarding PFMAM’s services or entities, please visit www.pfmam.com.
© 2024 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.

177

PARS OPEB and Pension Trust Moderate Strategic Blend

Investment Performance Review
For the Quarter Ended September 30, 2024

Client Management Team
PFM Asset Management

PFM Asset Management LLC
1 California Street
Suite 1000
San Francisco, CA 94111

1735 Market Street
43rd Floor
Philadelphia, PA 19103

178

Financial Markets & Investment Strategy Review

1

179

For the Quarter Ended September 30, 2024
Multi-Asset Class Management

QUARTERLY MARKET SUMMARY
Factors to Consider Over the Next 6-12 Months
Monetary Policy (Global):

Economic Growth (Global):

Inflation (U.S.):

• The Fed has begun its easing cycle with a 50 basis
point (bp) cut with expectation of an additional 50
bps in rate cuts by year end.
• The global easing cycle is underway with nearly all
major central banks (excluding BoJ) completing
multiple rate cuts.

• U.S. economic growth remains strong reflecting a
consumer who continues to spend at elevated
levels.
• Economic growth outside the U.S. remains mixed.
China recent stimulus measures are aimed to boost
growth, which is conducive to global growth.

• Inflation continues its trend lower but has been
buoyed by stubborn housing costs. We expect this
inflation to further trend lower.
• The broad-based inflation cooling helped fuel the
Fed’s decision to cut by 50 bps but policy makers
note they are not declaring victory on price stability.

Financial Conditions (U.S.):

Consumer Spending (U.S.):

Labor Markets:

• The continuation of stable market measures, such
as narrow corporate yield spreads, record equity
index levels and low volatility, reflect economic
confidence.
• We remain focused on the cooling labor market and
effects this might have on the consumer as potential
catalysts for a broader slow down.

• The consumer continues to spend and support
economic strength. Upward revisions to the
personal savings rate paint the consumer in better
light.
• Moderation in the pace of overall spending is
expected given slowing wage growth and labor
market conditions.

• The labor market continues to moderate from
extremely strong levels seen in prior quarters. The
recent downward revisions to nonfarm payrolls
further emphasized the cooling.
• Other labor metrics remain well positioned such as
the layoffs and discharge rate pointing towards
moderation rather than deterioration.

Corporate Fundamentals:

Valuations:

Political Risks:

• Fed rate cuts are a positive for economic growth
and corporate earnings, but any tax/tariff changes
need to be closely monitored for any impact on
profit margins.

• U.S. equity and credit markets have experienced a
run up in valuations. Any negative shock relating to
economic growth could lead to sell-off.

• Geopolitical risks continue to remain elevated.
Broadening of middle east conflict, U.S. and China
trade and tariff tensions, China’s moves in South
China Sea and Taiwan Strait further add to risks.

• Higher cash levels especially across S&P 500
companies along with broad based earnings growth
are positive.

Current outlook

• International equities look attractive, but continued
economic and geopolitical uncertainty is leading to
increased volatility.

Outlook one quarter ago

Stance Unfavorable
to Risk Assets

Negative

Slightly
Negative

• Policy uncertainty related to US elections outcome
is also expected to increase short term volatility.
Neutral

Slightly
Positive

Positive

Stance Favorable
to Risk Assets

Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg. The views expressed within
this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (September 30, 2024) and are subject to change. Information is obtained from
sources generally believed to be reliable and available to the public; however, PFM Asset Management cannot guarantee its accuracy, completeness, or suitability.

1.1

180

For the Quarter Ended September 30, 2024
Multi-Asset Class Management

QUARTERLY MARKET SUMMARY
Investment Strategy Overview
Asset Class

Our Q4 2024 Investment Outlook

U.S. Equities
Large-Caps
Small-Caps

Non-U.S. Equities
Developed Markets
Emerging Markets

Fixed Income
Core Bonds
Investment Grade Credit
High Yield Credit
Diversifying Assets
Listed Real Estate
Listed Global Infrastructure
Current outlook

Outlook one quarter ago

Comments
• Moderate economic growth coupled with Fed easing should result in
continued positive performance for US equities. We are concerned about
the high valuations, but believe that soft landing economic scenario and
earnings growth strength will provide tailwinds.
• Equity markets experienced a period of volatility during Q3 which we
expect to continue amidst slowing growth, geopolitical tensions and
election related uncertainty.
• Small-caps have lagged large caps since the sell off in first week of
August pointing to lack of fundamental support to rally in July, but we
expect fundamentals to improve as rate cuts take hold. Worries from the
Banking Crisis on regional banks seems to be in our rearview mirror.
• International equities continue to trade at a discount to U.S. and have
been recently helped by ECB rate cuts and weakening dollar. BoJ
continues to tighten while other central banks are embarking on rate cuts.
• EM equity performance is reliant on Indian and Chinese equities, which
constitute roughly 45% of the MSCI Emerging Market Index. Indian
equities are trading at expensive valuations, and we don’t expect a
sustained recovery in Chinese equities due to stimulus unless there are
structural/geopolitical changes addressing debt overhang and geopolitical
stability.
• Slowing inflation and softening labor markets led to Fed cutting by 50 bps
at their September meeting. Further rate cuts are expected which is
positive for fixed income investors.
• About $6.3 trillion is sitting in money market funds which could flow into
fixed income as the rates becomes more attractive.
• Credit markets remain attractive due to strong corporate fundamentals.
We remain positive on investment grade but are staying closer to targets
on high yield given tighter spreads. We continue to closely watch for
signs for any distress in the corporate credit space.
• Continued economic growth, falling rates, strengthening fundamentals
along with attractive valuations relative to equities are tailwinds to listed
real estate performance leading us to overweight the exposure.
• Transition to renewable energy and increase in AI led data center
infrastructure spend are tailwinds for listed infrastructure. Utilities which
make up about ~50% of the universe have been performing well recently
due to lower rates.
Negative

Slightly
Negative

Neutral

Slightly
Positive

Positive

The view expressed within this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (September 30, 2024) and are subject to change.

1.2

181

Plan Performance Summary

2

182

PARS OPEB and Pension Trust Moderate Strategic Blend
Asset Allocation & Performance

As of September 30, 2024

Allocation
%
Total Portfolio
Blended Benchmark
Domestic Equity
Russell 3000 Index
Dodge & Cox Stock
iShares S&P 500 Value ETF
Columbia Contrarian Core Inst3
S&P 500
Putnam Core Equity Fund Y
Schwab US Large-Cap ETF
S&P 500
Harbor Capital Appreciation Ret
iShares S&P 500 Growth ETF
S&P 500
Natixis Vaughan Nelson Select N
S&P 500
iShares Russell Mid-Cap ETF
Russell Midcap Index
Undisc Managers Behavioral Val R6
Russell 2000 Index
Columbia Small Cap Growth Inst3
Russell 2000 Index
Emerald Growth Institutional
Russell 2000 Index

100.00
37.13
3.79
1.84
5.08
2.35
5.93
2.96
2.60
1.14
4.73
3.32
0.77
2.62

Performance(%)
1
Quarter
5.58
5.90
5.67
6.23
7.16
9.00
3.54
5.89
5.90
5.93
5.89
1.43
3.67
5.89
3.29
5.89
9.17
9.21
8.75
9.27
8.70
9.27
5.97
9.27

Year
To
Date
11.13
11.20
18.77
20.63
16.29
15.21
20.63
22.08
23.46
21.50
22.08
22.90
27.97
22.08
10.44
22.08
14.49
14.63
10.71
11.17
19.66
11.17
16.38
11.17

1
Year

3
Years

5
Years

7
Years

10
Years

Since
Inception

Inception
Date

21.55
20.89
34.04
35.19
27.71
30.85
36.11
36.35
37.92
36.02
36.35
42.95
40.83
36.35
22.51
36.35
29.12
29.33
27.71
26.76
31.73
26.76
33.77
26.76

3.73
4.16
8.92
10.29
10.29
12.92
12.11
11.91
13.21
10.92
11.91
7.37
9.88
11.91
8.39
11.91
5.60
5.75
10.41
1.84
-3.70
1.84
1.47
1.84

6.83
7.04
13.83
15.26
14.52
13.02
16.70
15.98
17.86
15.71
15.98
18.84
17.34
15.98
14.67
15.98
11.13
11.30
13.41
9.39
11.89
9.39
11.11
9.39

6.45
6.69
12.34
13.74
11.88
11.45
14.21
14.50
15.09
14.27
14.50
16.92
16.24
14.50
13.33
14.50
10.31
10.48
9.85
7.36
12.82
7.36
9.25
7.36

N/A
N/A
N/A
12.83
11.26
10.64
13.18
13.38
13.47
13.17
13.38
N/A
14.96
13.38
N/A
13.38
10.03
10.19
10.49
8.78
13.91
8.78
10.66
8.78

7.28
7.56
13.99
14.97
16.16
14.89
18.47
20.06
N/A
N/A
N/A
17.91
24.40
20.06
N/A
N/A
16.16
16.29
13.10
15.66
N/A
N/A
20.45
15.66

02/01/2016
02/01/2016
02/01/2024
02/01/2024
02/01/2024
10/01/2024
10/01/2024
02/01/2024
02/01/2024
10/01/2024
02/01/2024
02/01/2024
10/01/2024
02/01/2024

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.1

183

PARS OPEB and Pension Trust Moderate Strategic Blend
Asset Allocation & Performance

As of September 30, 2024

Allocation
%
International Equity
MSCI AC World ex USA (Net)
MFS International Growth R6
MSCI AC World ex USA (Net)
Fidelity International Index
MSCI EAFE (net)
Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)
Hartford Schroders Emerging Mkts Eq
MSCI EM (net)
Other Growth
Cohen & Steers Inst Realty Shares
MSCI US REIT Index
Lazard Global Listed Infrastructure Inst
MSCI World Core Infrastructure Index (Net)
NYLI CBRE Global Infrastructure
FTSE Global Core Infrastructure 50/50 Index (Net)
Fixed Income
Blmbg. U.S. Aggregate
Baird Aggregate Bond Inst
iShares Core US Aggregate Bond ETF
Blmbg. U.S. Aggregate
Dodge & Cox Income
PGIM Total Return Bond R6
Blmbg. U.S. Aggregate
NYLI MacKay High Yield Corp Bond Fund
ICE BofA US High Yield Index
Cash Equivalent
ICE BofA 3 Month U.S. T-Bill
First American Government Obligation - X
ICE BofA 3 Month U.S. T-Bill

8.89
1.24
3.25
1.10
3.30
4.90
2.43
1.22
1.25
46.10
12.05
8.71
11.46
11.60
2.28
2.98
2.98

Performance(%)
1
Quarter
6.10
8.06
11.10
8.06
7.29
7.26
0.26
8.06
5.16
8.72
15.00
16.03
16.12
9.82
14.19
14.33
13.59
5.24
5.20
5.24
5.21
5.20
5.59
5.21
5.20
3.70
5.28
1.31
1.37
1.31
1.37

Year
To
Date
13.09
14.21
18.17
14.21
13.19
12.99
17.31
14.21
14.86
16.86
N/A
16.22
15.84
8.88
12.84
13.84
16.20
5.16
4.45
5.02
4.56
4.45
5.78
5.85
4.45
6.94
8.03
3.52
4.03
3.98
4.03

1
Year

3
Years

5
Years

7
Years

10
Years

Since
Inception

Inception
Date

23.78
25.35
31.02
25.35
25.36
24.77
32.01
25.35
24.35
26.05
N/A
35.99
34.38
20.22
28.08
28.32
28.80
12.43
11.57
12.58
11.55
11.57
13.53
13.43
11.57
13.16
15.66
4.90
5.46
5.36
5.46

3.28
4.14
6.61
4.14
5.82
5.48
9.20
4.14
-1.82
0.40
N/A
4.57
4.98
9.40
5.58
6.19
6.71
-0.47
-1.39
-1.10
-1.39
-1.39
0.37
-0.87
-1.39
3.45
3.08
3.32
3.49
3.50
3.49

7.31
7.59
9.84
7.59
8.36
8.20
12.20
7.59
5.01
5.75
N/A
6.56
5.47
7.20
5.41
5.94
5.24
1.07
0.33
0.78
0.31
0.33
2.12
0.82
0.33
4.67
4.55
2.14
2.32
2.25
2.32

5.10
5.44
8.78
5.44
6.15
6.00
11.01
5.44
3.47
3.65
N/A
8.77
6.96
7.03
6.93
6.98
6.18
1.88
1.47
1.85
1.44
1.47
2.77
2.13
1.47
4.67
4.56
2.04
2.22
2.14
2.22

N/A
5.22
8.59
5.22
5.87
5.71
N/A
5.22
N/A
4.02
N/A
9.14
7.77
9.21
6.48
7.00
6.36
N/A
1.84
2.25
1.81
1.84
2.91
2.72
1.84
5.13
4.95
N/A
1.65
N/A
1.65

7.90
8.12
19.09
15.36
7.29
7.26
0.26
8.06
20.25
22.55
17.05
18.76
19.47
N/A
N/A
9.72
10.55
2.24
1.70
6.50
6.24
6.24
5.87
5.59
4.74
6.54
7.69
1.74
1.90
3.51
3.59

02/01/2016
02/01/2024
07/01/2024
07/01/2024
02/01/2024
02/01/2024
06/01/2024
10/01/2024
06/01/2024
02/01/2016
03/01/2024
03/01/2024
02/01/2024
02/01/2024
03/01/2024
02/01/2016
02/01/2024

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.2

184

PARS OPEB and Pension Trust Moderate Strategic Blend
Calendar Year Comparative Performance

Total Portfolio
Blended Benchmark
Domestic Equity
Russell 3000 Index
Dodge & Cox Stock
iShares S&P 500 Value ETF
Columbia Contrarian Core Inst3
Putnam Core Equity Fund Y
Schwab US Large-Cap ETF
Harbor Capital Appreciation Ret
iShares S&P 500 Growth ETF
Natixis Vaughan Nelson Select N
S&P 500
iShares Russell Mid-Cap ETF
Russell Midcap Index
Undisc Managers Behavioral Val R6
Columbia Small Cap Growth Inst3
Emerald Growth Institutional
Russell 2000 Index
International Equity
MSCI AC World ex USA (Net)
MFS International Growth R6
MSCI AC World ex USA (Net)
Fidelity International Index
MSCI EAFE (net)
Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)
Hartford Schroders Emerging Mkts Eq
MSCI EM (net)

2023
14.07
13.56
24.55
25.96
17.48
22.02
32.21
27.99
26.87
53.86
29.80
22.35
26.29
17.07
17.23
14.57
26.39
19.06
16.93
14.02
15.62
14.96
15.62
18.31
18.24
22.15
15.62
9.00
9.83

As of September 30, 2024

2022
-14.61
-13.74
-18.76
-19.21
-7.22
-5.41
-18.45
-15.87
-19.45
-37.67
-29.51
-16.68
-18.11
-17.43
-17.32
-1.10
-36.51
-24.50
-20.44
-15.77
-16.00
-15.02
-16.00
-14.24
-14.45
-11.10
-16.00
-22.14
-20.09

2021
9.29
10.21
23.40
25.66
31.73
24.67
24.45
30.75
26.75
15.74
31.76
39.59
28.71
22.38
22.58
34.50
-2.54
4.04
14.82
4.68
7.82
9.65
7.82
11.45
11.26
12.49
7.82
-4.93
-2.54

Performance(%)
2020
12.52
12.02
18.35
20.89
7.16
1.24
22.44
17.66
20.90
54.56
33.21
18.64
18.40
16.91
17.10
3.62
70.41
38.85
19.96
13.90
10.65
15.82
10.65
8.17
7.82
15.77
10.65
23.78
18.31

2019
17.70
17.66
29.31
31.02
24.83
31.71
33.08
32.50
31.40
33.39
30.91
27.85
31.49
30.31
30.54
23.34
41.18
28.70
25.53
23.74
21.51
27.31
21.51
22.00
22.01
27.64
21.51
22.32
18.42

2018
-4.01
-3.37
-6.02
-5.24
-7.07
-9.09
-8.81
-7.91
-4.53
-0.96
-0.17
-4.62
-4.38
-9.13
-9.06
-15.20
-1.92
-11.57
-11.01
-15.46
-14.20
-8.79
-14.20
-13.52
-13.79
-6.04
-14.20
-15.42
-14.57

2017
13.38
11.66
21.74
21.13
18.33
15.19
21.89
24.01
21.92
36.68
27.20
N/A
21.83
18.32
18.52
13.53
28.94
28.11
14.65
30.21
27.19
32.58
27.19
25.38
25.03
31.76
27.19
N/A
37.28

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.3

185

PARS OPEB and Pension Trust Moderate Strategic Blend
Calendar Year Comparative Performance

Other Growth
Cohen & Steers Inst Realty Shares
MSCI US REIT Index
Lazard Global Listed Infrastructure Inst
MSCI World Core Infrastructure Index (Net)
NYLI CBRE Global Infrastructure
FTSE Global Core Infrastructure 50/50 Index (Net)
Fixed Income
Blmbg. U.S. Aggregate
Baird Aggregate Bond Inst
iShares Core US Aggregate Bond ETF
Blmbg. U.S. Aggregate
Dodge & Cox Income
PGIM Total Return Bond R6
Blmbg. U.S. Aggregate
NYLI MacKay High Yield Corp Bond Fund
ICE BofA US High Yield Index
Cash Equivalent
ICE BofA 3 Month U.S. T-Bill
First American Government Obligation - X
ICE BofA 3 Month U.S. T-Bill

2023
N/A
12.72
13.74
10.89
4.01
3.96
2.21
6.95
5.53
6.43
5.59
5.53
7.70
7.78
5.53
11.97
13.46
4.98
5.02
5.00
5.02

As of September 30, 2024

2022
N/A
-24.73
-24.51
-1.30
-7.93
-6.08
-4.87
-12.08
-13.01
-13.35
-13.06
-13.01
-10.87
-14.86
-13.01
-7.81
-11.22
1.48
1.46
1.54
1.46

2021
N/A
42.47
43.06
19.87
17.13
15.22
14.88
-0.72
-1.55
-1.46
-1.67
-1.55
-0.91
-1.15
-1.55
5.35
5.36
0.02
0.05
0.03
0.05

Performance(%)
2020
N/A
-2.57
-7.57
-4.48
-0.80
1.17
-4.06
7.21
7.51
8.63
7.42
7.51
9.45
8.10
7.51
5.28
6.17
0.36
0.67
0.40
0.67

2019
N/A
33.01
25.84
22.26
26.64
28.46
25.13
8.23
8.72
9.48
8.68
8.72
9.73
11.14
8.72
13.03
14.41
2.08
2.28
2.12
2.28

2018
N/A
-3.99
-4.57
-3.73
-2.66
-6.56
-3.99
-0.39
0.01
-0.30
-0.05
0.01
-0.31
-0.63
0.01
-1.34
-2.27
1.71
1.87
1.74
1.87

2017
N/A
7.45
5.07
20.80
19.25
20.48
18.39
4.37
3.54
4.20
3.53
3.54
4.36
6.71
3.54
6.79
7.48
0.75
0.86
0.79
0.86

Returns are gross of investment advisory fees and net of mutual fund fees. Returns are expressed as percentages and for periods over one year are annualized. Asset class level
returns may vary from individual underlying manager returns due to cash flows. Total Portfolio returns prior to 1/1/2024 were provided by previous Advisor and believed to be
accurate and reliable. Returns for January 2024 were calculated by the legacy performance system of previous Advisor and believed to be accurate and reliable.

2.4

186

PARS OPEB and Pension Trust Moderate Strategic Blend
Historical Hybrid Composition - PARS Moderate

Allocation Mandate
Oct-2012
Blmbg. U.S. Aggregate
S&P 500
ICE BofA 1-3 Yr. Gov/Corp
Russell 2000 Index
MSCI EAFE (net)
Russell Midcap Index
FTSE 1 Month T-Bill
MSCI EM (net)
Wilshire US REIT Index
ICE BofA US High Yield Index

As of September 30, 2024

Weight (%)
33.5
26.5
10.0
7.5
6.0
5.0
5.0
3.3
1.8
1.5

Apr-2007
S&P 500
Blmbg. U.S. Aggregate
ICE BofA 1-3 Yr. Gov/Corp
FTSE 1 Month T-Bill
MSCI EAFE (net)
Russell 2000 Index

43.0
30.0
15.0
5.0
5.0
2.0

Jul-1986
S&P 500
Blmbg. U.S. Aggregate
ICE BofA 1-3 Yr. Gov/Corp
FTSE 1 Month T-Bill

50.0
30.0
15.0
5.0

*The benchmark for the PARS Moderate strategy defined above was assigned to the PARS OPEB and Pension Trust Moderate
Strategic Blend upon its inception on February 2016

2.5

187

Manager Overview

3

188

Portfolio Characteristics

As of September 30, 2024

Dodge & Cox Stock vs. Russell 1000 Value Index
Portfolio Characteristics
Portfolio
277,686
53,813
20.91
2.47
7.92
1.95
82

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
172,125
14,225
20.80
2.85
9.02
2.06
872

Communication Services

4.2
4.7

Consumer Discretionary

7.9
5.3

Energy

6.7

Financials
Health Care

23.3

15.5
13.1

Industrials
6.8

14.7

9.1

3.8
4.6

Real Estate

1.0

Utilities

1.5

Cash

24.1

21.2

Materials

0.0

0.0
Dodge & Cox Stock

Top Ten Holdings

% of Portfolio

6.3

3.1

Consumer Staples

Information Technology

Fiserv Inc.
Schwab (Charles) Corp
RTX Corp
Wells Fargo & Co
Sanofi
MetLife Inc
Johnson Controls International Plc
Occidental Petroleum Corp
CVS Health Corp
Microsoft Corp

11.4

4.9
4.8

2.1

5.0

10.0

15.0

20.0

25.0

30.0

Russell 1000 Value Index

Ten Best Performers

Portfolio
Weight
(%)
3.43
3.41
3.22
3.08
2.92
2.86
2.82
2.44
2.31
2.24

Benchmark
Weight
(%)
0.28
0.34
0.64
0.78
0.00
0.19
0.21
0.14
0.31
0.00

Active
Weight
(%)
3.15
3.07
2.58
2.30
2.92
2.67
2.61
2.30
2.00
2.24

28.73

2.89

25.84

Quarterly
Return
(%)
20.54
-11.70
21.34
-4.16
18.78
18.44
17.33
-17.88
7.68
-3.55

V.F. Corp
EchoStar Corp
Haleon plc
Carrier Global Corp
Bristol-Myers Squibb Co
Fox Corp
Gilead Sciences Inc
SBA Communications Corp
Coherent Corp
Fox Corp
% of Portfolio

Portfolio
Weight
(%)
0.48
0.20
1.20
0.75
0.51
0.83
1.78
0.21
0.51
0.29

Benchmark
Weight
(%)
0.03
0.00
0.00
0.27
0.42
0.04
0.41
0.10
0.05
0.02

Active
Weight
(%)
0.45
0.20
1.20
0.48
0.09
0.79
1.37
0.11
0.46
0.27

6.76

1.34

5.42

Quarterly
Return
(%)
48.53
39.36
28.77
27.60
26.47
23.97
23.33
23.17
22.70
22.03

3.1

189

Portfolio Characteristics

As of September 30, 2024

iShares S&P 500 Value (IVE) vs. S&P 500 Value
Portfolio Characteristics
Portfolio
204,773
34,857
21.56
2.98
7.67
2.19
438

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
205,260
34,832
21.54
2.98
7.67
2.19
438

4.4
4.4
5.3
5.3

Communication Services
Consumer Discretionary

10.2
10.2

Consumer Staples
6.0
6.0

Energy

23.0
23.0

Financials
17.8
17.8

Health Care
11.6
11.7

Industrials
7.9
8.0

Information Technology
3.6
3.6
4.5
4.5
5.5
5.5

Materials
Real Estate
Utilities
Cash

0.3
0.0

0.0
iShares S&P 500 Value (IVE)

Top Ten Holdings

Berkshire Hathaway Inc
JPMorgan Chase & Co
Exxon Mobil Corp
Johnson & Johnson
Walmart Inc
UnitedHealth Group Incorporated
Bank of America Corp
Home Depot Inc. (The)
Chevron Corp
Procter & Gamble Co (The)
% of Portfolio

5.0

10.0

15.0

20.0

25.0

30.0

S&P 500 Value

Ten Best Performers

Portfolio
Weight
(%)
3.99
2.84
2.47
1.85
1.66
1.59
1.27
1.20
1.19
1.18

Benchmark
Weight
(%)
4.00
2.85
2.47
1.85
1.67
1.59
1.27
1.20
1.19
1.18

Active
Weight
(%)
-0.01
-0.01
0.00
0.00
-0.01
0.00
0.00
0.00
0.00
0.00

19.24

19.27

-0.03

Quarterly
Return
(%)
13.14
4.84
2.64
11.72
19.60
15.22
0.44
18.43
-4.81
5.65

Erie Indemnity Co
GE Vernova Inc
Mohawk Industries Inc.
Kellanova
CBRE Group Inc
Stanley Black & Decker Inc
3M Co
PayPal Holdings Inc
Iron Mountain Inc
BXP Inc
% of Portfolio

Portfolio
Weight
(%)
0.03
0.19
0.04
0.10
0.18
0.08
0.36
0.38
0.08
0.06

Benchmark
Weight
(%)
0.03
0.19
0.04
0.10
0.18
0.08
0.36
0.38
0.08
0.06

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

1.50

1.50

0.00

Quarterly
Return
(%)
49.49
48.67
41.46
40.92
39.69
38.98
34.48
34.46
33.40
32.29

3.2

190

Portfolio Characteristics

As of September 30, 2024

Columbia Contrarian Core vs. Russell 1000 Index
Portfolio Characteristics
Portfolio
905,055
120,581
28.83
5.71
18.41
1.17
78

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
894,449
15,165
27.37
4.90
18.62
1.31
1,010

10.4
8.7
7.5
10.4

Communication Services
Consumer Discretionary
5.5
5.7

Consumer Staples
2.9
3.4

Energy

11.8
13.4
11.3
11.5

Financials
Health Care
7.3

Industrials

9.4

Information Technology
Materials
Real Estate
Utilities
Cash

29.8

0.0
Columbia Contrarian Core

Top Ten Holdings

Lam Research Corp
Microsoft Corp
NVIDIA Corporation
Apple Inc
Amazon.com Inc
Meta Platforms Inc
Alphabet Inc
Alphabet Inc
JPMorgan Chase & Co
AbbVie Inc
% of Portfolio

37.0

2.7
2.6
1.2
2.7
1.8
2.4
0.7
0.0

8.0

16.0

24.0

32.0

40.0

48.0

Portfolio
Weight
(%)
0.16
1.15
0.90
1.43
1.02
0.26
0.61
0.95
1.49
1.46

Benchmark
Weight
(%)
0.13
1.38
0.38
0.12
0.17
0.15
0.04
0.08
0.06
0.31

Active
Weight
(%)
0.03
-0.23
0.52
1.31
0.85
0.11
0.57
0.87
1.43
1.15

Quarterly
Return
(%)
48.67
32.22
28.94
28.27
28.15
25.26
24.94
21.95
21.76
21.34

9.43

2.82

6.61

Russell 1000 Index

Ten Best Performers

Portfolio
Weight
(%)
10.50
6.40
6.02
5.77
4.14
2.85
1.85
1.78
1.63
1.58

Benchmark
Weight
(%)
0.20
6.06
5.38
6.42
3.28
2.38
1.85
1.56
1.14
0.66

Active
Weight
(%)
10.30
0.34
0.64
-0.65
0.86
0.47
0.00
0.22
0.49
0.92

42.52

28.93

13.59

Quarterly
Return
(%)
-23.13
-3.55
-1.69
10.75
-3.58
13.64
-8.83
-8.73
4.84
16.20

GE Vernova Inc
Tesla Inc
International Business Machines Corp
Newmont Corporation
Sherwin-Williams Co (The)
Parker-Hannifin Corp
Illumina Inc
Public Service Enterprise Group Inc
eBay Inc.
RTX Corp
% of Portfolio

3.3

191

Portfolio Characteristics

As of September 30, 2024

Putnam US Core Equity Fund vs. Russell 3000 Index
Portfolio Characteristics
Portfolio
883,952
51,713
23.78
4.79
19.43
1.27
122

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
851,765
2,253
26.86
4.70
18.41
1.31
2,987

8.2
8.4
9.8
10.4

Communication Services
Consumer Discretionary
5.8
5.6

Consumer Staples
2.1
3.5

Energy

14.7
13.6

Financials

10.7
11.8

Health Care
5.8

Industrials
Materials
Real Estate
Utilities
Other
Cash

29.0

Putnam US Core Equity Fund

Top Ten Holdings

% of Portfolio

33.4

2.2
2.7
2.6
2.8
2.9
2.4
0.8
0.0
0.9
0.0

0.0

Lam Research Corp
Microsoft Corp
Apple Inc
NVIDIA Corporation
Alphabet Inc
Amazon.com Inc
Meta Platforms Inc
Berkshire Hathaway Inc
Mastercard Inc
Eli Lilly and Co

9.8

Information Technology

8.0

16.0

24.0

32.0

40.0

Quarterly
Return
(%)
44.29
40.06
39.69
37.02
32.22
30.56
30.55
30.08
29.60
28.94

Russell 3000 Index

Ten Best Performers

Portfolio
Weight
(%)
8.28
6.30
6.12
5.05
3.30
3.09
2.76
1.96
1.80
1.71

Benchmark
Weight
(%)
0.19
5.77
6.11
5.12
1.49
3.12
2.26
1.52
0.74
1.28

Active
Weight
(%)
8.09
0.53
0.01
-0.07
1.81
-0.03
0.50
0.44
1.06
0.43

40.37

27.60

12.77

Quarterly
Return
(%)
-23.13
-3.55
10.75
-1.69
-8.73
-3.58
13.64
13.14
12.10
-2.01

Chuy's Holdings Inc
TPG Inc
CBRE Group Inc
Nyxoah S A
Tesla Inc
Fair Isaac Corporation
PulteGroup Inc
Constellation Energy Corp
Highwoods Properties Inc.
International Business Machines Corp
% of Portfolio

Portfolio
Weight
(%)
0.23
0.24
1.21
0.05
0.83
0.34
1.21
0.59
0.17
0.36

Benchmark
Weight
(%)
0.00
0.01
0.07
0.00
1.31
0.08
0.05
0.15
0.01
0.37

Active
Weight
(%)
0.23
0.23
1.14
0.05
-0.48
0.26
1.16
0.44
0.16
-0.01

5.23

2.05

3.18

3.4

192

Portfolio Characteristics

As of September 30, 2024

Schwab US Large-Cap ETF vs. Russell 1000 Index
Portfolio Characteristics

Sector Weights (%)

Portfolio
908,656
22,107
27.62
5.07
19.17
1.28
752

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Benchmark
894,449
15,165
27.37
4.90
18.62
1.31
1,010

8.4
8.7
10.0
10.4

Communication Services
Consumer Discretionary
5.5
5.7

Consumer Staples
3.3
3.4

Energy

12.9
13.4
11.2
11.5

Financials
Health Care
9.0
9.4

Industrials
Information Technology

29.8

Materials
Real Estate
Utilities
Cash

0.1
0.0

0.0
Schwab US Large-Cap ETF

Top Ten Holdings

Apple Inc
Microsoft Corp
NVIDIA Corporation
Amazon.com Inc
Meta Platforms Inc
Lam Research Corp
Alphabet Inc
Berkshire Hathaway Inc
Alphabet Inc
Broadcom Inc
% of Portfolio

32.4

2.4
2.6
2.5
2.7
2.4
2.4

8.0

16.0

24.0

32.0

40.0

Russell 1000 Index

Ten Best Performers

Portfolio
Weight
(%)
6.67
6.02
5.62
3.28
2.35
2.00
1.83
1.59
1.51
1.51

Benchmark
Weight
(%)
6.42
6.06
5.38
3.28
2.38
0.20
1.85
1.60
1.56
1.49

Active
Weight
(%)
0.25
-0.04
0.24
0.00
-0.03
1.80
-0.02
-0.01
-0.05
0.02

32.38

30.22

2.16

Quarterly
Return
(%)
10.75
-3.55
-1.69
-3.58
13.64
-23.13
-8.83
13.14
-8.73
7.78

Exact Sciences Corporation
AppLovin Corporation
Ubiquiti Inc
Erie Indemnity Co
GE Vernova Inc
V.F. Corp
Palantir Technologies Inc
Mohawk Industries Inc.
TransUnion
Liberty Broadband Corp
% of Portfolio

Portfolio
Weight
(%)
0.02
0.05
0.00
0.03
0.13
0.01
0.14
0.02
0.04
0.02

Benchmark
Weight
(%)
0.02
0.06
0.00
0.00
0.13
0.01
0.14
0.02
0.04
0.02

Active
Weight
(%)
0.00
-0.01
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00

0.46

0.44

0.02

Quarterly
Return
(%)
61.23
56.87
52.68
49.49
48.67
48.53
46.86
41.46
41.33
40.99

3.5

193

Portfolio Characteristics

As of July 31, 2024

Harbor Capital Appreciation Fund vs. Russell 1000 Growth Index
Portfolio Characteristics

Sector Weights (%)

Portfolio
1,202,167
165,954
42.75
11.03
28.64
0.43
53

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Benchmark
1,520,756
18,511
37.14
12.57
26.03
0.63
395

Communication Services

14.9
12.6

Consumer Discretionary

14.1
2.8
3.6

Consumer Staples
Energy

19.2

0.0
0.4
7.5
6.3

Financials
Health Care

7.9

11.1

4.5
4.5

Industrials

39.8

Information Technology
Materials
Real Estate
Utilities
Cash

0.0

10.0

Harbor Capital Appreciation Fund

Top Ten Holdings

NVIDIA Corporation
Amazon.com Inc
Microsoft Corp
Apple Inc
Meta Platforms Inc
Broadcom Inc
Eli Lilly and Co
Netflix Inc
Mastercard Inc
Visa Inc
% of Portfolio

49.2

0.0
0.7
0.0
0.6
0.0
0.2
0.3
0.0

20.0

30.0

40.0

50.0

60.0

Russell 1000 Growth Index

Ten Best Performers

Portfolio
Weight
(%)
8.88
8.63
8.25
5.80
4.94
4.91
4.12
3.08
2.67
2.54

Benchmark
Weight
(%)
10.55
6.59
11.80
12.24
3.95
2.77
2.59
1.02
1.45
1.59

Active
Weight
(%)
-1.67
2.04
-3.55
-6.44
0.99
2.14
1.53
2.06
1.22
0.95

53.82

54.55

-0.73

Quarterly
Return
(%)
35.45
6.85
7.64
30.56
10.49
23.98
3.14
14.11
2.93
-0.91

NVIDIA Corporation
Apple Inc
Tesla Inc
Vertex Pharmaceuticals Inc
Broadcom Inc
Moody's Corp.
TJX Companies Inc (The)
Goldman Sachs Group Inc (The)
Intuitive Surgical Inc
Adobe Inc
% of Portfolio

Portfolio
Weight
(%)
8.88
5.80
2.54
1.84
4.91
0.79
0.82
0.64
1.52
1.22

Benchmark
Weight
(%)
10.55
12.24
2.45
0.24
2.77
0.27
0.29
0.16
0.60
0.94

Active
Weight
(%)
-1.67
-6.44
0.09
1.60
2.14
0.52
0.53
0.48
0.92
0.28

28.96

30.51

-1.55

Quarterly
Return
(%)
35.45
30.56
26.62
26.20
23.98
23.52
20.58
20.02
19.96
19.19

3.6

194

Portfolio Characteristics

As of September 30, 2024

iShares S&P 500 Growth ETF (IVW) vs. S&P 500 Growth
Portfolio Characteristics

Sector Weights (%)

Portfolio
1,581,606
51,004
35.85
10.94
27.35
0.64
234

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Benchmark
1,583,787
51,004
35.85
10.94
27.35
0.64
233

12.2
12.3
13.7
13.8

Communication Services
Consumer Discretionary
2.6
2.6
1.2
1.3

Consumer Staples
Energy

5.2
5.2
6.8
6.9
6.1
6.1

Financials
Health Care
Industrials

49.7
49.8

Information Technology
Materials
Real Estate
Utilities
Cash

1.2
1.2
0.7
0.7
0.3
0.3
0.1
0.0

0.0

10.0

iShares S&P 500 Growth ETF (IVW)

Top Ten Holdings

Apple Inc
Microsoft Corp
NVIDIA Corporation
Amazon.com Inc
Meta Platforms Inc
Alphabet Inc
Alphabet Inc
Broadcom Inc
Tesla Inc
Eli Lilly and Co
% of Portfolio

20.0

30.0

40.0

50.0

60.0

S&P 500 Growth

Ten Best Performers

Portfolio
Weight
(%)
12.80
11.55
10.79
6.29
4.52
3.51
2.90
2.90
2.62
2.52

Benchmark
Weight
(%)
12.81
11.57
10.81
6.30
4.52
3.51
2.90
2.90
2.63
2.53

Active
Weight
(%)
-0.01
-0.02
-0.02
-0.01
0.00
0.00
0.00
0.00
-0.01
-0.01

60.40

60.48

-0.08

Quarterly
Return
(%)
10.75
-3.55
-1.69
-3.58
13.64
-8.83
-8.73
7.78
32.22
-2.01

Erie Indemnity Co
GE Vernova Inc
Palantir Technologies Inc
Builders FirstSource Inc
Vistra Corp
Axon Enterprise Inc
D.R. Horton Inc
Iron Mountain Inc
Tesla Inc
Fair Isaac Corporation
% of Portfolio

Portfolio
Weight
(%)
0.03
0.11
0.27
0.08
0.15
0.10
0.20
0.06
2.62
0.17

Benchmark
Weight
(%)
0.03
0.11
0.27
0.08
0.15
0.10
0.20
0.06
2.63
0.17

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
0.00

3.79

3.80

-0.01

Quarterly
Return
(%)
49.49
48.67
46.86
40.06
38.15
35.81
35.59
33.40
32.22
30.56

3.7

195

Portfolio Characteristics

As of August 31, 2024

Natixis Vaughan Nelson Select vs. Russell 3000 Index
Portfolio Characteristics
Portfolio
748,270
87,941
30.38
4.33
32.91
0.75
27

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
830,898
2,285
26.27
4.63
18.68
1.32
2,981

Communication Services

9.3
8.2

Consumer Discretionary

9.9
1.2

Consumer Staples

12.3

5.6
3.6
3.7

Energy
Financials

14.0

Health Care

8.0

Industrials

8.1

18.9

12.3
9.7

Information Technology

28.8

Materials

2.6

Real Estate

0.0

Utilities

0.0

Cash

2.8

2.3
1.0
0.0

0.0

8.0

Natixis Vaughan Nelson Select

Top Ten Holdings

Microsoft Corp
NVIDIA Corporation
Monolithic Power Systems Inc
Amazon.com Inc
Alphabet Inc
Zoetis Inc
JPMorgan Chase & Co
Intercontinental Exchange Inc
Berkshire Hathaway Inc
ON Semiconductor Corp
% of Portfolio

31.0

6.7

16.0

24.0

32.0

40.0

Russell 3000 Index

Ten Best Performers

Portfolio
Weight
(%)
6.98
6.65
6.46
5.66
5.58
4.74
4.73
4.71
4.34
4.23

Benchmark
Weight
(%)
5.69
5.21
0.08
3.04
1.76
0.15
1.18
0.17
1.60
0.06

Active
Weight
(%)
1.29
1.44
6.38
2.62
3.82
4.59
3.55
4.54
2.74
4.17

54.08

18.94

35.14

Quarterly
Return
(%)
0.66
8.89
27.25
1.17
-5.18
8.48
11.56
21.05
14.85
6.61

Coca Cola Consolidated Inc
ServiceNow Inc
Kinsale Capital Group Inc
Monolithic Power Systems Inc
Sherwin-Williams Co (The)
Intercontinental Exchange Inc
O'Reilly Automotive Inc
DoorDash Inc
Berkshire Hathaway Inc
JPMorgan Chase & Co
% of Portfolio

Portfolio
Weight
(%)
1.17
3.35
3.57
6.46
3.40
4.71
4.11
2.50
4.34
4.73

Benchmark
Weight
(%)
0.01
0.32
0.02
0.08
0.16
0.17
0.12
0.08
1.60
1.18

Active
Weight
(%)
1.16
3.03
3.55
6.38
3.24
4.54
3.99
2.42
2.74
3.55

38.34

3.74

34.60

Quarterly
Return
(%)
36.90
30.15
28.05
27.25
21.83
21.05
17.31
16.89
14.85
11.56

3.8

196

Portfolio Characteristics

As of September 30, 2024

iShares Russell Mid-Cap vs. Russell Midcap Index
Portfolio Characteristics
Portfolio
26,109
11,202
21.79
3.13
12.81
1.60
813

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
26,176
11,205
21.76
3.13
12.81
1.60
811

3.4
3.4

Communication Services

10.9
10.9

Consumer Discretionary
5.0
5.0
4.9
5.0

Consumer Staples
Energy

15.5
15.7

Financials
10.2
10.2

Health Care

17.4
17.4

Industrials
12.5
12.5

Information Technology
5.9
5.9

Materials

8.2
8.2

Real Estate
5.8
5.8

Utilities
Cash

0.2
0.0

0.0
iShares Russell Mid-Cap

Top Ten Holdings

Palantir Technologies Inc
Aflac Incorporated
Arthur J. Gallagher & Co.
Hilton Worldwide Holdings Inc
D.R. Horton Inc
Williams Cos Inc. (The)
Realty Income Corp
Simon Property Group Inc
United Rentals Inc.
ONEOK Inc
% of Portfolio

4.0

8.0

12.0

16.0

20.0

24.0

Russell Midcap Index

Ten Best Performers

Portfolio
Weight
(%)
0.64
0.53
0.52
0.48
0.48
0.47
0.47
0.46
0.46
0.45

Benchmark
Weight
(%)
0.64
0.53
0.52
0.48
0.48
0.47
0.47
0.47
0.46
0.45

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
0.00
0.00

4.96

4.97

-0.01

Quarterly
Return
(%)
46.86
25.78
8.73
5.71
35.59
8.55
21.73
12.75
25.49
13.10

Exact Sciences Corporation
Inspire Medical Systems Inc
AppLovin Corporation
Doximity Inc
Ubiquiti Inc
Vornado Realty Trust
V.F. Corp
Palantir Technologies Inc
SharkNinja Inc
Mohawk Industries Inc.
% of Portfolio

Portfolio
Weight
(%)
0.11
0.05
0.29
0.05
0.01
0.06
0.06
0.64
0.06
0.07

Benchmark
Weight
(%)
0.11
0.05
0.29
0.05
0.01
0.06
0.06
0.64
0.06
0.07

Active
Weight
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

1.40

1.40

0.00

Quarterly
Return
(%)
61.23
57.70
56.87
55.77
52.68
49.87
48.53
46.86
44.66
41.46

3.9

197

Portfolio Characteristics

As of September 30, 2024

Undiscovered Managers Behavioral Value vs. Russell 2000 Value Index
Portfolio Characteristics
Portfolio
6,902
4,133
15.54
1.78
4.23
2.44
102

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
2,842
782
14.21
1.65
6.67
2.13
1,438

Communication Services

0.4

Consumer Discretionary

3.4
4.6
3.6
2.3
4.4

Consumer Staples
Energy

10.0

7.2

Financials

28.0

Health Care
Industrials

19.1

12.2
0.8

Information Technology
Materials

5.8
11.6

5.1
6.4

Real Estate
Utilities
Cash

30.9

9.0
9.3

5.3

11.5
9.2

0.0
0.0

0.0

6.0

12.0

18.0

24.0

30.0

36.0

Undiscovered Managers Behavioral Value
Russell 2000 Value Index

Top Ten Holdings

KeyCorp
Healthpeak Properties Inc
Old National Bancorp
Citizens Financial Group Inc
Berry Global Group Inc
Graphic Packaging Holding Co
F.N.B. Corp
DENTSPLY SIRONA Inc
Devon Energy Corp
ICU Medical Inc
% of Portfolio

Ten Best Performers

Portfolio
Weight
(%)
4.10
3.32
3.20
3.02
2.92
2.88
2.84
2.80
2.66
2.50

Benchmark
Weight
(%)
0.00
0.00
0.44
0.00
0.00
0.00
0.00
0.00
0.00
0.30

Active
Weight
(%)
4.10
3.32
2.76
3.02
2.92
2.88
2.84
2.80
2.66
2.20

30.24

0.74

29.50

Quarterly
Return
(%)
19.32
18.37
9.35
15.11
15.98
13.27
4.01
9.27
-16.55
53.45

ICU Medical Inc
Hanesbrands Inc
Frontdoor Inc
Mercury Systems Inc
Valley National Bancorp
Cushman & Wakefield Ltd
Crown Holdings Inc
Granite Construction Inc
Dun & Bradstreet Corp (The)
Silgan Holdings Inc
% of Portfolio

Portfolio
Weight
(%)
2.50
0.90
0.39
0.43
0.76
0.28
0.86
1.81
0.90
0.63

Benchmark
Weight
(%)
0.30
0.00
0.00
0.15
0.30
0.24
0.00
0.05
0.00
0.00

Active
Weight
(%)
2.20
0.90
0.39
0.28
0.46
0.04
0.86
1.76
0.90
0.63

9.46

1.04

8.42

Quarterly
Return
(%)
53.45
49.09
42.02
37.09
31.47
31.06
29.25
28.14
24.82
24.48

3.10

198

Portfolio Characteristics

As of September 30, 2024

Columbia Small Cap Growth vs. Russell 2000 Growth Index
Portfolio Characteristics
Portfolio
7,277
4,826
35.11
5.07
13.52
0.33
97

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
4,131
1,176
24.08
4.27
17.81
0.59
1,120

2.2
2.0

Communication Services
Consumer Discretionary

10.1

12.3

2.6
3.2
2.8
3.4

Consumer Staples
Energy

5.4

Financials

8.2

Health Care
Industrials

21.8
17.4

Information Technology

Utilities
Cash

0.9
1.6
0.0
0.5
1.0
0.0

0.0
Columbia Small Cap Growth

Top Ten Holdings

FTAI Aviation Ltd
Carpenter Technology Corp
ICU Medical Inc
Bio-Techne Corp
Onto Innovation Inc
Chemed Corp
XPO Inc
Glaukos Corp
RBC Bearings Inc
AZEK Company Inc (The)
% of Portfolio

19.6

4.7
3.9

Materials
Real Estate

26.7
25.6
23.9

6.0

12.0

18.0

24.0

30.0

36.0

Russell 2000 Growth Index

Ten Best Performers

Portfolio
Weight
(%)
3.56
2.98
2.84
2.80
2.78
2.64
2.64
2.61
2.60
2.33

Benchmark
Weight
(%)
1.00
0.56
0.00
0.00
0.00
0.00
0.00
0.47
0.00
0.00

Active
Weight
(%)
2.56
2.42
2.84
2.80
2.78
2.64
2.64
2.14
2.60
2.33

27.78

2.03

25.75

Quarterly
Return
(%)
29.11
45.83
53.45
11.68
-5.47
10.86
1.28
10.08
10.97
11.08

Zeta Global Holdings Corp
ICU Medical Inc
Vaxcyte Inc
Carpenter Technology Corp
Biohaven Ltd
Impinj Inc
Zillow Group Inc
Hamilton Lane Inc
Lantheus Holdings Inc
Cogent Communications Holdings Inc
% of Portfolio

Portfolio
Weight
(%)
0.91
2.84
1.11
2.98
0.58
0.53
0.93
1.69
0.66
1.26

Benchmark
Weight
(%)
0.39
0.00
1.01
0.56
0.28
0.37
0.00
0.48
0.56
0.25

Active
Weight
(%)
0.52
2.84
0.10
2.42
0.30
0.16
0.93
1.21
0.10
1.01

13.49

3.90

9.59

Quarterly
Return
(%)
69.01
53.45
51.33
45.83
43.96
38.11
37.50
36.70
36.69
36.35

3.11

199

Portfolio Characteristics

As of September 30, 2024

Emerald Growth Fund vs. Russell 2000 Growth Index
Portfolio Characteristics
Portfolio
4,561
2,978
29.35
4.14
12.25
0.46
122

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
4,131
1,176
24.08
4.27
17.81
0.59
1,120

1.4
2.0

Communication Services

7.2

Consumer Discretionary

10.1

4.0
3.2
2.8
3.4

Consumer Staples
Energy
Financials

8.2

14.0
24.7
25.6

Health Care
15.7

Industrials

21.8

Information Technology

19.6

Materials

3.9

0.0
0.5

Utilities

0.0

5.0

Emerald Growth Fund

FTAI Aviation Ltd
Freshpet Inc
Carpenter Technology Corp
Credo Technology Group Holding Ltd
Q2 Holdings Inc
RadNet Inc
Palomar Holdings Inc
Varonis Systems Inc
Insmed Inc
AeroVironment Inc
% of Portfolio

5.4

1.3
1.6

Real Estate

Top Ten Holdings

23.5

10.0

15.0

20.0

25.0

30.0

Russell 2000 Growth Index

Ten Best Performers

Portfolio
Weight
(%)
3.12
2.75
2.47
1.99
1.96
1.92
1.88
1.87
1.81
1.78

Benchmark
Weight
(%)
1.00
0.00
0.56
0.29
0.35
0.34
0.17
0.46
0.85
0.39

Active
Weight
(%)
2.12
2.75
1.91
1.70
1.61
1.58
1.71
1.41
0.96
1.39

21.55

4.41

17.14

Quarterly
Return
(%)
29.11
5.70
45.83
-3.57
32.22
17.77
16.66
17.78
8.95
10.07

Clear Secure Inc
Applied Optoelectronics Inc
Travere Therapeutics Inc
Wave Life Sciences Ltd
Avid Bioservices Inc
Carpenter Technology Corp
Baldwin Insurance Group Inc (The)
LendingTree Inc
Portillos Inc
Impinj Inc
% of Portfolio

Portfolio
Weight
(%)
0.14
0.31
0.76
0.90
0.64
2.47
1.76
0.76
0.69
1.67

Benchmark
Weight
(%)
0.21
0.00
0.00
0.04
0.05
0.56
0.24
0.04
0.04
0.37

Active
Weight
(%)
-0.07
0.31
0.76
0.86
0.59
1.91
1.52
0.72
0.65
1.30

10.10

1.55

8.55

Quarterly
Return
(%)
77.71
72.62
70.19
64.33
59.38
45.83
40.40
39.53
38.58
38.11

3.12

200

Portfolio Characteristics

As of September 30, 2024

MFS International Growth vs. MSCI AC World ex USA Growth (Net)
Portfolio Characteristics
Portfolio
145,744
35,379
21.84
3.47
10.40
1.92
85

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
145,294
10,270
22.35
3.87
13.85
1.64
1,188

2.8

Communication Services

5.9
12.0

Consumer Discretionary
Consumer Staples

14.4

12.3

8.2
1.1
2.0

Energy

10.2

Financials
Health Care

11.5
11.6
12.5
18.4
18.0
18.7
19.4

Industrials
Information Technology
Materials
Real Estate
Utilities
Cash

0.0
0.8
0.4
1.0
0.9
0.0

0.0

4.0

8.0

MFS International Growth

SAP SE
Schneider Electric S E
Hitachi Ltd
Taiwan Semicon Manu Co
Roche Holding AG
Nestle SA, Cham Und Vevey
LVMH Moet Hennessy Louis Vui
Linde Plc
Heineken NV
AIA Group Ltd
% of Portfolio

34.14

Benchmark
Weight
(%)
1.68
1.02
0.86
5.25
0.08
1.21
1.49
0.00
0.18
0.46
12.23

12.0

16.0

20.0

24.0

MSCI AC World ex USA Growth (Net)

Top Ten Holdings
Portfolio
Weight
(%)
5.16
4.34
4.27
3.49
3.41
3.38
2.70
2.54
2.52
2.33

11.5

6.2

Region Weights (%)
Active
Weight
(%)
3.48
3.32
3.41
-1.76
3.33
2.17
1.21
2.54
2.34
1.87

Quarterly
Return
(%)
12.31
9.66
18.08
1.99
15.53
-1.33
0.47
8.99
-7.39
33.18

14.8

EM Asia
EM Europe + Middle East + Africa

0.0

23.6

3.4

1.8
2.5

EM Latin America
EMU

21.0

Europe ex EMU

20.4
19.5

Middle East

0.0
0.5
6.6
7.4

North America

17.4

Pacific

22.0

Other

0.5
0.0

Cash

0.9
0.0

21.91

0.0
MFS International Growth

37.6

15.0

30.0

45.0

60.0

MSCI AC World ex USA Growth (Net)

3.13

201

Portfolio Characteristics

As of September 30, 2024

Fidelity International Index Fund vs. MSCI EAFE (net)
Portfolio Characteristics
Portfolio
93,847
15,789
15.16
2.64
9.40
3.04
733

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
95,567
15,784
15.17
2.64
9.43
3.04
732

4.2
4.3

Communication Services

10.8
11.0

Consumer Discretionary
8.5
8.7

Consumer Staples
3.6
3.6

Energy

20.3
20.6

Financials
13.1
13.3

Health Care

17.1
17.3

Industrials
8.6
8.7

Information Technology
6.6
6.8

Materials
2.1
2.2

Real Estate

3.3
3.4

Utilities
Cash

0.0

1.7

0.0

5.0

Fidelity International Index Fund

Top Ten Holdings

Novo Nordisk A/S
ASML Holding NV
CASH
Nestle SA, Cham Und Vevey
Astrazeneca PLC
SAP SE
Novartis AG
Roche Holding AG
LVMH Moet Hennessy Louis Vui
Shell Plc
% of Portfolio

Portfolio
Weight
(%)
2.13
1.87
1.65
1.48
1.36
1.34
1.28
1.27
1.19
1.15
14.72

Benchmark
Weight
(%)
2.16
1.90
0.00
1.50
1.37
1.36
1.29
1.28
1.21
1.17
13.24

10.0

15.0

20.0

25.0

40.0

48.0

MSCI EAFE (net)

Region Weights (%)
Active
Weight
(%)
-0.03
-0.03
1.65
-0.02
-0.01
-0.02
-0.01
-0.01
-0.02
-0.02
1.48

Quarterly
Return
(%)
-18.19
-19.32
N/A
-1.33
0.13
12.31
7.61
15.53
0.47
-8.34

32.9

EMU

33.6
31.5

Europe ex EMU

31.9
0.8

Middle East

0.8
33.1

Pacific
Other
Cash

33.6
0.1
0.1
1.7
0.0

0.0

8.0

Fidelity International Index Fund

16.0

24.0

32.0

MSCI EAFE (net)

3.14

202

Portfolio Characteristics

As of June 30, 2024

Goldman Sachs GQG Ptnrs Intl Opportunities vs. MSCI AC World ex USA (Net)
Portfolio Characteristics
Portfolio
332,297
80,043
19.78
3.86
19.35
2.85
71

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
112,367
9,176
16.27
2.57
10.28
3.02
2,159

Communication Services

5.3

6.6

2.7

Consumer Discretionary

11.1

Consumer Staples

9.2

7.2

Energy

11.8

5.5

12.7

Financials
Health Care

9.5
9.8

Industrials
Information Technology
0.0

17.2

7.1

1.8

Utilities
Cash

13.7
14.0

3.0

Materials
Real Estate

21.7
15.3

6.6

3.1
5.0

0.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

32.0

40.0

Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)

Top Ten Holdings

Novo Nordisk A/S
CASH
Astrazeneca PLC
TotalEnergies SE
NVIDIA Corporation
ASML Holding NV
SAP SE
Taiwan Semicon Manu Co
Glencore Plc
Adani Power Ltd

Region Weights (%)

Portfolio
Weight
(%)
7.93
5.00
4.78
4.09
3.59
3.25
2.69
2.61
2.59
2.52

Benchmark
Weight
(%)
1.81
0.00
0.93
0.55
0.00
1.59
0.81
2.82
0.23
0.03

Active
Weight
(%)
6.12
5.00
3.85
3.54
3.59
1.66
1.88
-0.21
2.36
2.49

39.05

8.77

30.28

Quarterly
Return
(%)
13.26
N/A
15.79
-1.30
36.74
7.46
5.51
22.80
4.88
34.64

22.3
22.4

EM Asia
1.0

EM Europe + Middle East + Africa
EM Latin America
EMU

21.7

Europe ex EMU
Middle East

20.5

24.6
24.3

0.0
0.5

North America

7.5

15.8

2.0

Pacific
Other

0.0
0.1

Cash

0.0

0.0

% of Portfolio

3.4
5.1

2.1

21.8

5.0

8.0

16.0

24.0

Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)

3.15

203

Portfolio Characteristics

As of September 30, 2024

Hartford Schroders Emerging Markets Equity vs. MSCI EM (net)
Portfolio Characteristics
Portfolio
178,371
19,740
16.66
3.02
18.76
2.58
113

Wtd. Avg. Mkt. Cap ($M)
Median Mkt. Cap ($M)
Price/Earnings ratio
Price/Book ratio
5 Yr. EPS Growth Rate (%)
Current Yield (%)
Number of Stocks

Sector Weights (%)
Benchmark
153,637
8,155
15.68
2.93
14.67
2.59
1,277

9.0
9.4

Communication Services

13.6
14.0

Consumer Discretionary
5.1
5.2
4.7
4.8

Consumer Staples
Energy

23.5
22.8

Financials
2.4
3.6

Health Care

6.4
6.8

Industrials
Information Technology

22.2
2.4

Materials
Real Estate
Utilities
Cash

26.9

6.6

0.6
1.6
1.8
2.9
3.5
0.0

0.0

6.0

12.0

18.0

24.0

30.0

36.0

100.0

125.0

Hartford Schroders Emerging Markets Equity
MSCI EM (net)

Top Ten Holdings

Taiwan Semicon Manu Co
Tencent Holdings LTD
Samsung Electronics Co Ltd
CASH
Meituan
Icici Bank Ltd
Alibaba Group Holding Ltd
Axis Bank Ltd
Tata Consultancy Services Ltd
Reliance Industries Ltd

Region Weights (%)

Portfolio
Weight
(%)
10.77
6.34
4.24
3.45
2.80
2.35
2.29
1.91
1.67
1.62

Benchmark
Weight
(%)
9.00
4.53
2.71
0.00
1.33
0.96
2.60
0.41
0.56
1.30

Active
Weight
(%)
1.77
1.81
1.53
3.45
1.47
1.39
-0.31
1.50
1.11
0.32

37.44

23.40

14.04

Quarterly
Return
(%)
1.99
20.00
-20.57
N/A
55.61
6.49
56.83
-3.02
9.05
-5.82

70.6
77.1

EM Asia
EM Europe + Middle East + Africa

9.0
11.6

EM Latin America

11.1
7.5

EMU

1.2
1.3

Europe ex EMU

0.5
0.0

North America

0.0
0.3

Pacific

3.8
2.1

Other

0.5
0.0

Cash

3.5
0.0

0.0

% of Portfolio

25.0

50.0

75.0

Hartford Schroders Emerging Markets Equity
MSCI EM (net)

3.16

204

Portfolio Characteristics
Cohen & Steers Institutional Realty Shares

As of September 30, 2024

Portfolio Characteristics
Net Assets ($ millions)
Inception Date

Top 10 Holdings
7,940
2/14/2000

Portfolio

American Tower Corporation

Telecommunications

United States

9.30%

Welltower, Inc.

Health Care

United States

8.70%

Gross Expense Ratio

0.76%

Digital Realty Trust, Inc.

Data Centers

United States

7.10%

Net Expense Ratio

0.75%

Prologis, Inc.

Industrial

United States

6.80%

Number of Holdings

33

Crown Castle International Corp.

Telecommunications

United States

6.10%

Simon Property Group, Inc.

Regional Mall

United States

5.80%

Turnover Rate

32%

Wgt. Avg. Market Cap. ($ millions)

38,610

Equinix, Inc.

Data Centers

United States

4.60%

12-Month Distribution Yield

2.75%

Iron Mountain Incorporated

Specialty

United States

4.30%

30-Day SEC Yield

1.97%

Invitation Homes, Inc.

Single Family Homes

United States

3.60%

Sun Communities, Inc.

Manufactured Homes

United States

3.40%

Geographic Exposure

Sector Exposure vs. Benchmark 1
18%

16%

16%
13%

14%
12%

United States,
100%

10%
8%
6%
4%
2%
0%

12%
9%
6%

13%

12%

9%

12%

6%

9%

6%

8%

5%

4%

5%

2%

Cohen & Steers Institutional Realty Shares

4%

2%

4%
4%

3%

2%

3%
2%

3%
3%

2%

6%

1%

2%
5%

3%

Benchmark: FTSE Nareit All Equity REIT Index

(1) Cohen & Steers uses the FTSE Nareit All Equity REIT Index as its preferred benchmark for this strategy.

3.17

205

Portfolio Characteristics
Lazard Global Listed Infrastructure Portfolio

As of September 30, 2024

Portfolio Characteristics

Top 10 Holdings

Net Assets ($ millions)

9,100

Inception Date

12/31/2009

Portfolio

National Grid

Diversified Utilities

United Kingdom

9.17%

Ferrovial

Toll Roads

Spain

8.77%

Gross Expense Ratio

0.97%

Snam

Gas Utilities

Italy

6.81%

Net Expense Ratio

0.97%

United Utilities

Water Utilities

United Kingdom

4.88%

Number of Holdings

27

Severn Trent

Water Utilities

United Kingdom

4.86%

28%

Terna

Electricity Utilities

Italy

4.85%

Wgt. Avg. Market Cap. ($ millions)

30,200

Exelon

Diversified Utilities

United States

4.83%

Dividend Yield

4.50%

Norfolk Southern

Railroads

United States

4.68%

VINCI

Toll Roads

France

4.59%

CSX

Railroads

United States

4.51%

Turnover Rate

Sector Exposure vs. Benchmark1

Geographic Exposure

Hong Kong, 5%

30%

RoW, 6%

25%

UK, 20%

25%
21%

France,
6%

20%

Austr.,
7%

10%

15%

11%

11%

10%

9%

8%
3%

5%

Cash,
8%
Spain,
10%

USA, 19%

15%

6%

16%

6%

15%

8%

14%

2%
5%

15%

0%

Italy,
18%
Lazard Global Listed Infrastructure

Benchmark: MSCI World Core Infrastructure Index

(1) Lazard uses the MSCI World Core Infrastructure Index as its preferred benchmark for this strategy.

3.18

206

Portfolio Characteristics
NYLI CBRE Global Infrastructure Fund

As of September 30, 2024

Portfolio Characteristics

Top 10 Holdings

Net Assets ($ millions)

896

Inception Date

6/28/2013

Portfolio

WEC Energy Group, Inc.

Regulated Electric

United States

4.40%

CSX Corporation

Rail

United States

4.30%

Gross Expense Ratio (Class I)

1.03%

Targa Resources Corp.

Midstream / Pipelines

United States

4.30%

Net Expense Ratio (Class I)

0.97%

Atmos Energy Corp.

Gas Distribution

United States

4.00%

49

Pembina Pipeline Corp.

Midstream / Pipelines

Canada

3.70%

47%

Number of Holdings
Turnover Rate

American Tower Corp.

Communications

United States

3.70%

Wgt. Avg. Market Cap. ($ millions)

38,400

PG&E Corp.

Regulated Electric

United States

3.60%

12-Month Distribution Yield

2.07%

Equinix, Inc.

Communications

United States

3.30%

30-Day SEC Yield

2.08%

Vinci S.A.

Toll Roads

France

3.30%

PPL Corp.

Regulated Electric

United States

3.20%

Geographic Exposure
Hong Kong, 2%

Sector Exposure
35%

Switzerland, 1%
RoW, 5%

30%

30%

Japan, 2%

25%

China, 2%

20%

Italy, 3%

15%

France, 4%

10%
UK, 4%

11%

10%

10%

9%

7%

7%

6%

5%

5%

5%

Spain, 6%
USA, 63%

0%

Canada, 8%

NYLI CBRE Global Infrastructure Fund

3.19

207

Portfolio Characteristics

As of September 30, 2024

Baird Aggregate vs. Blmbg. U.S. Aggregate
Portfolio Characteristics

Credit Quality Distribution (%)

Portfolio
6.20
4.49
8.15
AA
3.58

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

72.7

52.6

50.0

25.0

21.3
12.6

12.6

12.5

11.5

3.4

0.2

0.0

aa
/A
A
AA

a
/A
AA

aa
/B
B
BB

A

Baird Aggregate

0.7

0.0

a
/B
BB
C

h
as

0.0

NR
or

Blmbg. U.S. Aggregate

Sector Distribution (%)
80.0

60.0
47.4

40.0

37.0
30.7

28.4

26.9

24.6

20.0
0.8

0.0

0.0

G

&
't
ov

d
te
la
e
R

Baird Aggregate

a
oc
i/L
n
u
M

y
ri t
ho
t
u
lA

3.0

0.5

0.2

S
AB
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
gh
Hi

d
el
Yi

0.7

0.0

s
rp
Co
C

O
h/
as

0.0

er
th

Blmbg. U.S. Aggregate

3.20

208

Portfolio Characteristics

As of September 30, 2024

iShares Core U.S. Aggregate Bond ETF vs. Blmbg. U.S. Aggregate
Portfolio Characteristics
Portfolio
6.19
4.25
8.37
AA
3.41

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Credit Quality Distribution (%)
Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

70.7

72.7

50.0

25.0
11.9
3.2

0.0

11.5

12.8

12.5

3.4

aa
/A
A
AA

1.3

a
/A
AA

A

aa
/B
B
BB

C

h
as

0.0

NR
or

iShares Core U.S. Aggregate Bond ETF
Blmbg. U.S. Aggregate

Sector Distribution (%)
80.0

60.0
46.3

47.4

40.0
26.7

26.9

25.5

24.6

20.0
0.6

0.0

G

&
't
ov

d
te
la
e
R
a
oc
i/L
n
u
M

y
ri t
ho
t
u
lA

iShares Core U.S. Aggregate Bond ETF

0.8

0.5

0.5

0.5

S
AB
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
C

O
h/
as

0.0

er
th

Blmbg. U.S. Aggregate

3.21

209

Portfolio Characteristics

As of September 30, 2024

Dodge & Cox Income vs. Blmbg. U.S. Aggregate
Portfolio Characteristics

Credit Quality Distribution (%)

Portfolio
6.30
4.70
9.60
A
N/A

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

72.7
64.6

50.0

25.0

21.0
12.5

11.5

0.0

7.1

3.4

1.8

aa
/A
A
AA

a
/A
AA

2.8

aa
/B
B
BB

A

Dodge & Cox Income

0.0

2.1

a
/B
BB

0.6

0.0

B
C

h
as

0.0

NR
or

Blmbg. U.S. Aggregate

Sector Distribution (%)
80.0

60.0
47.4

44.4

40.0
26.9

24.9

21.1

20.0

0.8

0.0

0.0

G

&
't
ov

d
te
la
e
R
a
oc
i/L
n
u
M

Dodge & Cox Income

y
ri t
ho
t
u
lA

24.6

4.9

4.0

0.5

0.7

0.0

S
AB
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
gh
Hi

d
el
Yi

s
rp
Co
C

O
h/
as

0.0

er
th

Blmbg. U.S. Aggregate

3.22

210

Portfolio Characteristics

As of September 30, 2024

PGIM Total Return Bond vs. Blmbg. U.S. Aggregate
Portfolio Characteristics

Credit Quality Distribution (%)

Portfolio
6.35
5.69
7.35
AA
4.39

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Benchmark
6.20
4.23
8.36
AA
3.37

100.0

75.0

72.7

50.0
31.8

31.5

25.0
15.3

9.9 11.5

12.5
5.7

3.4

aa
/A
A
AA

2.4

0.0

0.0

a
/A
AA

A

aa
/B
B
BB

PGIM Total Return Bond

a
/B
BB

0.0

B

1.0 0.0

2.5

B

NR
or

w
lo
Be

C

h
as

0.0

Blmbg. U.S. Aggregate

Sector Distribution (%)
75.0

50.0

47.4
30.2

25.0

26.9

24.2

20.6

24.6

11.0

7.6
1.2

0.0

0.8

2.1

0.5

0.0

2.3

0.0

0.8

0.0

0.0

0.0
0.0

-25.0

G

't
ov

&

d
te
la
e
R
un
M

a
oc
i/L

y
ri t
ho
t
u
lA

PGIM Total Return Bond

S
AB

C

LO
o
M

es
ag
g
rt
v
In

G

de
ra

C

p
or
gh
Hi

d
el
Yi

s
rp
Co
Em

g

k
ar
M

s
et
N

.D
.S
U
on

ev
C

O
h/
as

er
th

Blmbg. U.S. Aggregate

3.23 211

Portfolio Characteristics

As of September 30, 2024

NYLI MacKay High Yield Corp Bond Fund vs. ICE BofA US High Yield Index
Portfolio Characteristics
Portfolio
2.83
6.81
4.48
BB
6.09

Effective Duration
Yield To Maturity (%)
Avg. Maturity
Avg. Quality
Coupon Rate (%)

Credit Quality Distribution (%)
Benchmark
2.97
7.22
4.73
B
6.37

80.0

60.0

53.6
45.9

40.0

32.1 34.0

20.0
12.5
7.9

0.0

0.1

0.0

a
/A
AA

0.3

0.0

A

7.3

6.7
0.0

aa
/B
B
BB

0.0

a
/B
BB

B

w
lo
Be

B
C

h
as

NR
or

NYLI MacKay High Yield Corp Bond Fund
ICE BofA US High Yield Index

Sector Distribution (%)
150.0

100.0

100.0

88.1

50.0

7.5

4.4

0.0

0.0

v
In

G

de
ra

C

p
or

NYLI MacKay High Yield Corp Bond Fund

gh
Hi

d
el
Yi

0.0

s
rp
Co
C

O
h/
as

er
th

ICE BofA US High Yield Index

3.24 212

IMPORTANT DISCLOSURES
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was
prepared without regard to any specific objectives or financial circumstances.
Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities
and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National
Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee
the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable
regulatory information is available upon request.
PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is
obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its
accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the
custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we
disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be
recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When
average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated
by a NRSRO.
It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of
investor assets. Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index
returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of
these fees and charges would cause investment performance to be lower than the performance shown.
The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change.
Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain
assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report.
Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes
in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected
performance.
For more information regarding PFMAM’s services or entities, please visit www.pfmam.com.
© 2024 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.

213

Disclosures
Disclaimer

The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. (USBAM)
at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic
trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change.
Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is
based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be
reliable. No representation is made as to its accuracy or completeness.
PFM Asset Management (PFMAM) serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc. which
is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a
direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S. Bank N.A. is not responsible for and does not
guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.
Public Agency Retirement Services (“PARS”) is a third-party and not affiliated with PFMAM, USBAM or U.S. Bank. PARS serves as the
trust administrator to the Public Agencies Post-Employment Benefits Trust, Public Agencies Post-Retirement Health Care Plan Trust,
and the Public Agency Retirement System Trust (the “Trusts”). U.S. Bank N.A. serves as the discretionary trustee to the Trusts. In its
capacity as discretionary trustee, U.S. Bank N.A. delegates the investment management of the Trusts to its affiliate USBAM through a
sub-advisory agreement. PARS is serviced by PFMAM, a division of USBAM.
U.S. Bank N.A. pays the sub-adviser up to 67% of the annual management fee for assets sub-advised under its sub-advisory
agreement with U.S. Bank N.A. Refer to your U.S. Bank N.A. fee schedule for investment management fees applied to your specific
portfolio. U.S. Bank N.A. compensates the sub-adviser for these services from its own fees.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the
general public.

13

214

Additional
Disclaimer
Disclosures

Assets under management as of 6/30/2024 represent the assets managed by PFM asset Management LLC (PFMAM). As of 10/1/2024
PFMAM and U.S. Bancorp Asset Management, Inc. (USBAM) formerly separately registered investment advisers consolidated into one
legal entity and one registered investment adviser with the SEC, with USBAM as the continuing legal entity and registered investment
adviser.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the
general public.

14

215

Finance Committee Meeting
November 12, 2024

216

AGENDA
• CEO Update
• FY23-24 Financial Audit Review
• Investment Policy
• Investments Update
• PFM Portfolio
• 115 Trust Account
• FY24-25 Mid-Year Budget Update
217

FY23-24 Financial Independent Audit Report
•

FY23-24 Audit Performed by Davis Farr, LLP

•

Financial Statements – 2 Ways
1.

Governmental Fund Basis (Short-Term, Close to Cash Basis)
o FY23-24 – $28M
o

2.

GAAP Basis / Net Position / Equity / Principal (Long-Term Basis)
o
o

•

FY22-23 – $29M

FY23-24 – $55M
FY22-23 – $56M

Cash and Investments
o
o

FY23-24 – $14.3M / 115 Pension & OPEB Trust $3.8M
FY22-23 – $13.6M / 115 Pension & OPEB Trust $3.7M
218

FY23-24 Financial Independent Audit Report
2024

2023

Variance

REVENUES
Financing and rental income related to leases

35% $

5,268,000

33% $

4,893,000

375,000

8%

Property taxes

33%

5,024,000

32%

4,752,000

272,000

6%

Program income

13%

2,056,000

11%

1,584,000

472,000

30%

Income from limited partnership

11%

1,746,000

11%

1,618,000

128,000

8%

Investment earnings

1%

227,000

2%

320,000

(93,000)

-29%

Other revenues

0%

69,000

1%

133,000

(64,000)

-48%

Intergovernmental

6%

872,000

10%

1,416,000

(544,000)

-38%

100%

15,262,000

100%

14,716,000

546,000

4%

TOTAL OPERATING REVENUES
ADD BACK / (DEDUCT):
GASB 87 & 96 - LEASE & INTEREST *

224,000

421,000

(197,000)

-47%

1,820,000

694,222

1,125,778

162%

UNREALIZED GAIN <LOSS>

780,000

109,330

670,670

613%

AMORTIZATION - NOTES RECEIVABLE

(700,000)

(618,528)

(81,472)

-13%

2,124,000

606,024

1,517,976

17,386,000

15,322,024

2,063,976

CAPITAL INVESTMENT GRANTS

TOTAL REVENUES - AUDITED FINANCIALS

13%

219

FY23-24 Financial Independent Audit Report
OPERATING REVENUES
OPERATING EXPENDITURES

2024

2023

Variance

15,262,000

14,716,000

546,000

4%

Health & Fitness

16%

2,432,000

15%

2,184,000

(248,000)

-11%

Life Spans

32%

4,772,000

34%

4,939,000

167,000

3%

Other Programs & Services

14%

2,103,000

14%

2,041,000

(62,000)

-3%

Admin & Support Services

16%

2,368,000

16%

2,336,000

(32,000)

-1%

Property Operations

21%

3,129,000

21%

3,145,000

16,000

1%

TOTAL OPERATING EXPENDITURES

100%

14,804,000

100%

14,645,000

(159,000)

-1%

71,000

387,000

545%

458,000

OPERATING CASH INCOME

ADD BACK / (DEDUCT):
NET CAPITAL EXPENDITURES
GASB 87 & 96 - NET EXP & INCOME
UNREALIZED G/(L) / NR AMORTIZATI

FUND BALANCE CHANGE

FUND BALANCES, BEGINNING OF YEAR
FUND BALANCES, END OF YEAR
$

(1,240,000)
225,000
80,000

(3,215,000)
356,000
(509,000)

1,975,000
(131,000)
589,000

61%
-37%
116%

(477,000)

(3,297,000)

2,820,000

86%

28,732,000
28,255,000

32,029,000
28,732,000

(3,297,000)
(477,000)

-10%

(477,000)

$ (3,297,000)

$

-2%

2,820,000

220

FY23-24 Financial Independent Audit Report – Net Position
2024

2023

Variance

REVENUES
EXPENDITURES
DISTRICT OPERATING CASH

15,262,000
(14,804,000)
458,000

14,716,000
(14,645,000)
71,000

546,000
(159,000)
387,000

EXPENDITURES - Capital
GASB 87 & 96 / UNREALIZED / AMORTIZATION
FUND BALANCE CHANGE

(1,240,000)
305,000
(477,000)

(3,215,000)
(153,000)
(3,297,000)

1,975,000
458,000
2,820,000

CONVERSION TO NET POSITION (LONG TERM ECONOMIC RESOURCES)
FUND BALANCE CHANGE
NET INCREASE IN CAPITAL INVESTMENTS
NET INCREASE IN PENSION & OPEB LAIBILITIES
NET OTHER GAAP CHANGES: ACCRUED PTO, UNEARNED, ETC.
NET POSITION CHANGE

NET INVESTMENT IN CAPITAL ASSETS
OTHER NET ASSETS
NET POSITION

2024

2023

30,440,000
24,646,000
$ 55,086,000

30,214,000
25,597,000
$ 55,811,000

4%
-1%
-545%
61%
299%
86%

(477,000)
226,000
(521,349)
47,349
(725,000)

Variance
226,000
(951,000)
$ (725,000)

1%
-4%
-1%

221

ACTION ITEM:
Recommend Approval to the Board of Directors of the FY23-24 BCHD
Independent Audit Report and accompanying Financial Statements

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Davis Farr, LLP
Audit Results
Fiscal Year Ended June 30, 2024

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Investment Policy #6110

224

ACTION ITEM:
Please review and consider recommending the approval of Policy 6110:
Investment Policy requiring no edits by the District Board of Directors at
the November 20, 2024, board meeting.

225

Investment Performance Update

226

227

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BCHD Investment Portfolio Performance
Fiscal Year - Actual
Portfolio - @ Cost

FY22-23
$

13,939,358

FY24-25
(September)

FY23-24
$

11,203,390

$

9,668,581

Cost to Market Valuation

(866,427)

(720,731)

(196,886)

Portfolio - @ Market *

13,072,931

10,482,659

9,471,695

US Bank Money Market

119,227

110,925

543,197

Managed Portfolio - @ Market

$

CAMP & LAIF *
Total Value - @ Market

13,192,158

$

69,531
$

Yield to Maturity @ Cost
Yield to Maturity @ Market
Duration to Maturity (Years)

13,261,689

10,593,584

$

2,911,346
$

13,504,930

10,014,893
2,174,632

$

12,189,525

1.63%
4.83%
2.14

1.34%
5.05%
1.22

1.34%
4.18%
1.11

Portfolio Interest Income
Realized Gain / (Loss)

193,687
(64,457)

178,677
(59,038)

74,746
(14,420)

Net Portfolio Gain / (Loss) $
Notes Receivable (NR) Interest

129,230

$

119,638

$

60,326

Interest Income Realized $

319,889

$

227,410

$

73,536

190,659

107,772

13,210

Pension 115 Trust Earnings

212,569

330,504

126,948

Unrealized Gain/(Loss)

(103,239)

449,073

221,869

Deduct - NR Discount Amortization

(618,528)

(699,663)

(188,364)

Total BCHD Interest Income $

(189,309)

$

307,324

$

233,989

* The District has transferred $2.85M in FY20-21; $2.425M in FY21-22; $3.79M in FY22-23; $0.032M in FY2324, $1.9M in FY24-25 for the Total of $11M from the Portfolio to cover operating liquidity needs for fiscal-year
expenditures including Capital investments disbursements.

229

230

231

232

Mid-Year Budget Update

233

234

FY24-25 Mid-Year Review Discussion – November 20, 2024
Please join Board study session at 5:30PM
Summary Budget - Estimates

FY23-24

FY24-25

Actual

FY25-26

Next Year Budget

FY26-27

FY27-28

TOTAL REVENUES

15,261,000

16,146,000

15,245,000

14,062,000

13,330,000

TOTAL EXPENSES

(14,803,000)

(15,628,000)

(15,495,000)

(15,352,000)

(13,925,000)

458,000

518,000

(250,000)

(1,290,000)

(595,000)

Change 1)

$

1,047,000

$

901,000

$

901,000

$

901,000

Notes

Window of deferred savings for allcove staffing
1) FY24-25 adjusted for long-term savings $901,000 / $146,000 one-time
Opportunity

2) FY24-25 implementing operational reductions; staffing and services
3) allcove operational sustainability
4) Review Capital Investment Options:
• Healthy Living Campus
• 514 N. Prospect Demolition
• allcove Youth Wellness Center
• Center for Health & Fitness Relocation
235

District Budget Shortfall “Big Picture” Strategies
%

LEVEL
Minor

Moderate

1%

2%

$
2%

5%

$

$

$

Same Level of Service
Tighter Budget Monitoring (hold new purchases, etc.)
300,000
Simplicit Frugality (Low Hanging Fruit - All Depts)
Share Resources

300,000

$

Begin Cutting Service Levels (PBB)
750,000 Soft Freeze on Staffing matters (Control Personnel Costs)
Reduce Some PT/Seasonal

750,000

Major Service Cuts (PBB)
Reduce/Sell Properties to Invest in Other Sources of Income
$ 2,250,000
Defer
Window
of Wage Increases
Opportunity
Eliminate PT/Seasonal Workforce
Reduce FT Workforce Some

150,000

Major

5%

15%

$

Crisis

15%

30%

$ 2,250,000

Existential
Property Tax Only

30%

67%

ACTION PLAN OPTIONS

$ 4,500,000

$ 4,500,000

Eliminate Programs
Reduce FT Workforce Significantly

Bare-Bone Staff / 1-2 Programs or Grant Distributor
$10,000,000 Remaining Revenue:
$5M Property Tax
$2M JV Income
$ 5,000,000 $1M Off-Campus (assuming not sold)

236

FY24-25 Mid-Year Review Discussion – November 20, 2024
Please join Board study session at 5:30PM
Operational Reduction Process
1) Recession Strategic Plan
2) Priority Based Budget (PBB)
• Board Direction
• Program Areas
• Revenue Opportunities
3) Planning Principles
4) Recommendations
• Trade-Offs
237

Thank You!

238