On the agenda: Bchd 2024/11/20 Board Of Directors - Nov 20, 2024 — data center (Nov 21)

BOARD OF DIRECTORS
REGULAR MEETING
November 20, 2024
6:30 PM
In Person:
Beach Cities Health District
Beach Cities Room - Lower Level
514 N. Prospect Ave. Redondo Beach, CA 90277
Video Conference:
https://bchd-org.zoom.us/j/83343413878?pwd=a1S66nyjhT4D74zJHghHUFaQkSlpXQ.1
Password: beach
Phone Conference:
Dial In: (669) 444 - 9171
Webinar ID: 833 4341 3878

I.

Call to Order - Salute the Flag
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.

Page 1 of 6 - BCHD Agenda November 20, 2024
1

There will be Public Input opportunities for every agenda item.
BOARD 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 5:30pm
on Wednesday, November 20, 2024.
Option 2: You can also raise your hand during the Zoom Meeting when the Board 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 5:30pm on Wednesday, November 20, 2024. Written
comments will not be read into the record. They will be provided to the Board members and will be on
file with the District and available for review.
II.

Beach Cities Health District Staff & Community Recognition
Proclamation to Cal Water
(Megan Vixie)
20 Years
Bernadette Lewis, Membership Services Manager
(Cindy Foster)
10 Years
Tessa Garner, School Health Programs Supervisor
(Emory Chen)
Core Value Award - Excellence
Jamie Fresques
(Yuliya Pigrish)

III.

CEO Report:
IIIA.

CEO Report - November 2024

CEO Report - November 2024.pdf
IV.

Public Discussion On Items Not On The Agenda
IVA.

Written Comments

Written Comments 111524.pdf
V.

Program and Staff Reports:

Page 2 of 6 - BCHD Agenda November 20, 2024
2

VA.

Chief Medical Advisor Update
(Dr. Bill Kim)

VB.

Legal Counsel
(Robert Miller)

VI.

Activity/Mindfulness Break
(Jacqueline Sun)

VII.

Committee Reports

Community Health Committee
(Dr. Michelle Bholat)
Finance Committee
(Jane Diehl)
Discussion and Potential Action Item:
Approval of the FY23-24 BCHD Independent Audit Report and accompanying Financial
Statements

FY23-24 Audit BOD Staff Memo_Nov2024.pdf
BCHD Annual Audited Financial Report FY23-24 Draft.pdf
2024_11_20_BOD Meeting Financial Audit Review Presentation.pdf
Discussion and Potential Action Item:
Approval of Policy 6110: Investment Policy

BCHD BOD Staff Memo_Investment Policy Review_112024.pdf
6110. Investment Policy 11-15-2023.pdf
BCHD Nov 2024 PARS Client Review.pdf
BCHD_PFM Portfolio Review_9.30.24_Final.pdf
Discussion and Potential Discussion Item:
Approval of revised Policy 6130: Principal Preservation

BCHD BOD Staff Memo_Policy 6130 Principal Preservation.pdf
6130 Principal Preservation 11-15-2023_Edits.pdf
Policy Committee
Discussion and Potential Action Item:
Approval of:
Policy Number 4050 for: Micro-Enrichment Grants
Policy Number 5040 for: Grants to Non-Profit Agencies
Policy Number 5070 for: Emergency and Disaster Relief Grants

Memo - Grant Policies.pdf
4050. Micro-Enrichment Grants_draft.pdf
5040. Grants for Nonprofit Agencies_draft.pdf
Page 3 of 6 - BCHD Agenda November 20, 2024
3

5070. Emergency and Disaster Relief Grants_draft.pdf
Discussion and Potential Action Item:
Approval of Administration Policy Series 4000:
Revised Policy Number 4080: Use of Meeting Rooms
Revised Policy Number 4100: Expense Reimbursement
Revised Policy Number 4160: Occupant Recycling
Revised Policy Number 4170: Service Animals and Approved Pets

BOD Memo for 4000 Series - Administrative Services.pdf
4080. Use of Meeting Rooms_draft.pdf
4100. Expense Reimbursement_draft.pdf
4160. Occupant Recycling_draft.pdf
4170. Service Animals and Approved Pets.pdf
4170a. PET REGISTRATION FORM.pdf
Discussion and Potential Action Item:
Approval of:
Revised Policy Number 3050: Holidays, Vacation and Sick Leave
Revised Policy Number 3230: Benefits
Revised Policy Number 3420: Leave of Absence: Non-Medical
New Policy Number 3930: Artificial Intelligence Governance

BOD Memo for 3000 Series - Human Resources.pdf
3050. Holidays, Vacation and Sick Leave_draft.pdf
3050. Benefits_draft.pdf
3420. Leave of Absence - Non Medical_draft.pdf
3930. Artificial Intelligence Governance_draft.pdf
Discussion and Potential Action Item:
Approval of Revised Policy Number 1050 for: Access to Public Records.

Memo - 1050 Access to Public Records.pdf
1050. Access to Public Records 06-23-2021_draft.pdf
1050a. Application for Inspection of Pub Records_draft.pdf
Discussion and Potential Action Item:
Approval of the BCHD Diversity Equity and Inclusion Advocacy Statement as presented by
the BCHD DEI Task Force.

Memo - DEI Advocacy Statement.pdf
DEI Advocacy Statement - Revised Draft 2024.pdf
Properties Committee
Strategic Planning Committee
Discussion and Potential Action Item:
Approval of the District's Core Values

2024_11_20_BOD_Core Values.pdf
VIII.

Consent Items:

Page 4 of 6 - BCHD Agenda November 20, 2024
4

VIIIA. Discussion And Potential Action Item:
Approval Of Minutes of The October 23, 2024, 2024 Regular Meeting

Board Minutes - October 23, 2024.docx
VIIIB. Discussion And Potential Action Item:
Approval Of Minutes of The October 23, 2024, 2024 Special Meeting

Special Board Minutes - October 23, 2024 .docx
VIIIC. Discussion And Potential Action Item:
Approve Checks No. 82096 Through No. 82202 Totaling $667,106.23 For Accounts Payable
For The Month Of October 2024

Treasurers_report 10-2024
IX.

Old Business

X.

New Business
XA.

Discussion and Potential Action Item:
Approval of RES599 - Keep the Esplanade Beautiful

RES599-Keep the Esplanade Beautiful.pdf
XI.

Board Member Reports

XII.

Announcements/Questions and Referrals to Staff

XIII.

Adjournment

XIV.

Reconvene - Prospect One Corporation

XV.

Call To Order

XVI.

Public Discussion on Items not on the Agenda

XVII. Informational item:
Prospect One Corporation FY23-24 Annual Financial Update

BCHD Prospect One FY23-24 Financial Update
XVIII. Informational Item:
Prospect One Corporation Entity Update

MEMO- Prospect One Corporation Update 11-20-24.pdf
XIX.

Old Business

XX.

New Business

XXI.

Adjournment

Page 5 of 6 - BCHD Agenda November 20, 2024
5

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 BOARD OF DIRECTORS REGULAR MEETING IS SCHEDULED FOR
JANUARY 22, 2025 IN THE BEACH CITIES ROOM AT THE BEACH CITIES HEALTH DISTRICT.

Page 6 of 6 - BCHD Agenda November 20, 2024
6

MEMORANDUM
TO:

Board of Directors

FROM:

Tom Bakaly, Chief Executive Officer

DATE:

November 15, 2024

SUBJECT: CEO Report

CEO HIGHLIGHTS
Healthy Living Campus (HLC): We are evaluating the Board-adopted plan for the HLC. We also
continue to work with PMB as our developer for the Public-Private Partnership model for the Residential
Care for the Elderly (RCFE) portion of the project, and have extended their ground lease for the RCFE
portion until the end of February, 2025. PMB is evaluating options for potentially moving forward with a
project on the campus. As previously reported, the District has performed a seismic risk assessment,
and it found that the District can operate and occupy the 514 Prospect building within acceptable risk
standards until early 2027.
Permanent allcove Location: This item will be discussed as part of the mid-year budget process in
November with scenarios related to the operation and construction of allcove. We will take the next 69 months to evaluate options for allcove and a potential permanent location.
Relocation of the Center for Health and Fitness (CHF): We have begun community outreach efforts
to address the relocation of the CHF prior to 2027 (over 2 years from now). We have formed a citizen
working group and have held a general membership meeting on the issue.
Redondo Beach Draft General Plan: The District has legal and policy concerns about the Redondo
Beach Draft General Plan that is proposing a Floor Area Ratio (FAR) cap. Right now, there is not a
FAR limit on public institutional use such as BCHD, the School District, or the City. We are hopeful that
the General Plan will treat all public agencies equitably and uniformly with a cap of 1.25. We are taking
steps to ensure that the District is able to provide public health services to the community into the future.

BOARD REFERRALS
We are tracking Board Referrals in the CEO Report and providing updates on an ongoing basis.
A referral was made for staff to assess whether the Board should take a position on a proposed bill
from Rep. Maxine Waters, which would prohibit the use of hydrofluoric acid in petroleum refineries.
While support for this bill would likely align with our March 2018 advocacy letter that was sent to AQMD
on the same issue, Rep. Waters has yet to introduce the bill to Congress. Therefore, staff will continue
monitoring its status and will report back, including any recommendations for returning this item to the
Policy Committee.

BOARD COMMITTEE UPDATES
Information on committee meetings can be found at: https://www.bchd.org/board-directors-meetings
Community Health Committee: The Community Health Committee had not met. The next meeting is
scheduled for December 3, 2024 @ 6:30pm

7

Finance Committee: The Finance Committee met on November 12, 2024 @ 6pm.
The committee received an update from staff and DavisFarr on the FY23-24 Independent Audit Report
with an unqualified opinion on financial statements. The committee recommended this action item for
Board approval.
The committee also received an update on the investment policy and recommended no edits to the
policy for board approval. Additionally, the committee reviewed the District investments and PFM
provided a financial market update and a review of the District Portfolio market value, sector allocation,
credit quality and duration. The Finance Committee members had a robust discussion and agreed that
staff will bring back the review of the District portfolio benchmark next year.
Additionally, the committee received an update on the FY24-25 mid-year budget.
Finally, at the August 2024 Finance Committee meeting, the District Principle Preservation Policy 6130
was recommended for approval to the Board of Director to make a minor edit clarifying consistent
calculation for allocation of profits from selling assets to the Committed Fund Balance.
Committee Packet: CLICK HERE
Committee Video: CLICK HERE
Strategic Planning Committee: The Strategic Planning Committee last met on September 9, 2024.
The committee suggested some changes to the Core Values definitions and this action item will be
formally brought to the Board at their November meeting.
The next Strategic Development Half-Day is set for Friday, December 6 at 8:30am at AdventurePlex.
Committee Packet: CLICK HERE
Committee Video: CLICK HERE
Policy Committee: The Policy Committee met on October 7, 2024. There are 12 policies for potential
Board approval at the November meeting. In addition, the Board will have the Diversity, Equity, and
Inclusion Advocacy Statement as a potential action item for approval.
Committee Packet: CLICK HERE
Committee Video: CLICK HERE
Properties Committee: The Properties Committee has not met. The next meeting is scheduled for
December 10, 2024.
October 15 – November 15, 2024 Virtual Public Attendance numbers can be found below.
Participants*
PUBLIC MEETING ATTENDANCE
Regular Board Meeting –10/23/24

14

Special Board meeting –10/23/24

3

Finance Committee Meeting –11/12/24

0
8

*The participant # shows how many people viewed the webinar on their computer. It does not include
panelists or attendees who only listened by phone. Viewers who joined the meeting multiple times or
from multiple devices are counted only once.

CHIEF MEDICAL ADVISOR UPDATE
Mosquito Borne Illness LA County 2024: This year, West Nile Virus infections are about half of last
year’s numbers, with 31 infections being reported. Of those infections, 24 required hospitalization and
there were two deaths. West Nile virus is the leading cause of domestically-acquired arboviral disease.
Only about 1 to 2 percent of cases are reported since most of the cases are asymptomatic, mild and
then not evaluated by a health care professionals, or not tested for. West Nile viral infections are
generally seen between May and December with the peak incidence from mid- to late July to November.
The Culex species mosquito is the most common vector, however surveillance in North America has
identified 66 mosquito species which can be infected with West Nile Virus.
Dengue has been reported in L.A. county. Cases are reported yearly and are usually associated with
travel . This year, we have had 12 locally acquired Dengue cases; 1 in the Hollywood Hills, 2 in El
Monte, 8 in Baldwin Park and 1 in Panorama City, these cases were reported in August and September.
Last fall, two cases of locally-acquired dengue were reported. The Aedes aegypti species of mosquito
is the vector for transmission of this viral illness. Dengue symptoms include fever, eye pain and
conjunctivitis, headache, joint and muscle pain, a rash and nausea with vomiting. Symptoms develop
toward the end of a 4-to-6-day incubation period and then last for 3-to-7 days.
There are no specific medications to treat these viral illnesses, so prevention is our main tool to deal
with these seasonal outbreaks. We must take steps to decrease mosquito breeding, which includes
checking our homes and yards for standing water. If one has a pond, then mosquito fish - which eat
the mosquito eggs - are available. We can also protect ourselves by using mosquito repellants, wearing
long sleeved shirts and pants and make sure our window and door screens are intact.

LIFESPANS PROGRAM – YOUTH SERVICES
International Walk and Roll to School Day: On October 9, International Walk and Roll to School Day
returned across all three Beach Cities school districts to encourage more kid power and less
horsepower. The event brought together BCHD staff, local elected officials, police departments, school
administrators, parents, students and volunteers to walk along designated routes in promotion of safe
streets and physically active transportation. Sixteen schools within Hermosa Beach City School District,
Manhattan Beach Unified School District and Redondo Beach Unified School District participated and
approximately 2265 students hit the pavement that morning.
Beach Cities Partnership for Youth Coalition Meeting: The Beach Cities Partnership for Youth
Coalition meeting October 17 welcomed 33 key stakeholders from the community including parents,
students, school administrators, emergency responders, substance use professionals, mental health
providers and elected officials from the Beach Cities. The recent substance use prevention education
efforts of the Youth Advisory Council were featured along with the introduction of the new 2024-25
cohort consisting of 60 middle and high school students representing 10 Beach Cities schools. Key
health indicators from the 2024 California Healthy Kids survey were reviewed, along with an update
on allcove Beach Cities as they approach their two-year anniversary. Attendees participated in a
brainstorm activity regarding environmental and policy change strategies for the coalition.

9

Targeted Education for Beach Cities Middle Schools: The Coalition is partnering with the Beach
Cities school districts to coordinate on-campus assemblies targeting students in grades 7-8 focusing
on the dangers of substance use and illicitly manufactured fentanyl. The educational events that
occurred at Hermosa Valley (9/18/24), Manhattan Beach Middle School (10/18/24) and Parras Middle
School (11/5/24 and 11/6/24) featured a screening of “Come Back Home,” a documentary by Dominic
Tierno, followed by a panel discussion providing perspective from local young people in recovery who
have lived experience with substance use. These events have reached more than 1,700 students thus
far, with more assemblies scheduled through January. and will be completed by late January 2025 with
assemblies at Adams Middle School.

Number of events

Participants

YOUTH SERVICES – Oct. 2024
Youth Engagement

11

1717

Parent Education and Engagement

6

143

LiveWell Kids Lessons
Special Events:

212
3

5404
2435

LIFESPANS PROGRAM – WELL-BEING SERVICES
2024 Skechers Pier to Pier Friendship Walk: Team BCHD—comprised of 36 staff, volunteers, and
Moai walking group participants — joined the Skechers Pier to Pier Friendship Walk October 20 to
support the Friendship Foundation and their programs to enhance to lives of young people with
disabilities. As part of the WorkWell to LiveWell worksite wellness program, this event encouraged
employee participation and an opportunity to walk with our families and friends from the Manhattan
Beach Pier to the Hermosa Beach Pier and back.
For the Blue Zones Project Moai groups, this event fosters social connection and a sense of community
and are closely aligned with the Blue Zones Project Power 9 Principles and our department’s
commitment to bolstering mental well-being through social connection. BCHD’s event table featured a
Mental Health & Happiness Initiative activation, inviting participants to mail a gratitude postcard to loved
ones through our “Gratitude Mailbox.”
Staffing Updates: Our Worksite Wellness Assistant, Samuel Carcamo has recently accepted a new
role as a Program Specialist at AdventurePlex. Sam began his BCHD journey at AdventurePlex, joining
the Well-Being Services team in 2021 to support our WorkWell program for BCHD employees and
community partners. His dedication has been instrumental in building our award-winning workplace
culture at BCHD. Sam will continue to support our department through December to ensure a smooth
transition, and we’re grateful to continue to have Sam in the BCHD family.

WELL-BEING SERVICES

October 15 –
November 15, 2024

FY 2024-2025
Totals

Number of Event Participants

286

1086

Number of Events

13

43

10

Number of Events to Facilitate
Social Connections

7

26

Number of People Trained in Mental
Health Trainings (Mental Health
First Aid, QPR, etc)

7

120

LIFESPANS PROG
LIFESPANS PROGRAM – COMMUNITY SERVICES
CHF Engagement and Fitness: Community Services concluded tabling events for CHF members on
11/1/2024. Since September, Community Services staff have attended 16 Silver classes and 10 CHFled community classes in local senior centers to inform attendees about our Care Management program
and other services. Attendees were provided with an opportunity to consult individually with a social
worker after the classes as needed.
Mental Evaluation Team (MET) collaboration: Community Services continues to receive multiple
referrals a month from the local Beach Cities MET team. The MET team consists of Dept. of Mental
Health (DMH) clinicians partnered with police departments to respond to 911 crisis calls related to
mental health emergencies. In addition to making referrals for older adults and adults with disabilities
to our Care Management program, the MET clinicians have made themselves available to our team for
consultation on complex mental health cases and navigating the DMH network of services.
COMMUNITY SERVICES
Unduplicated callers to Information and Referral Line

October 2024
55

Insurance and Benefit Enrollments for Care Mgmt. Clients

8

New Care Management Clients

12

Closed Care Management Clients

14

YTD Unduplicated Care Management Clients

345

Care Management Visits with Clients

176

Care Management Calls with Clients

806

Volunteer Visits with Clients

42

Volunteer Calls with Clients

65

Errands Run by Volunteers

87

YTD
2024-2025
213
29
59
55
345
612
2499
167
277
351

ALLCOVE BEACH CITIES
Clinical Services: At its October meeting, the Board received questions and comments regarding the
role of allcove Beach Cities in the delivery of gender-affirming care and specifically, puberty blockers
and gender reassignment surgery.
Gender-affirming care, as defined by the World Health Organization, encompasses a range of social,
psychological, behavioral and medical interventions “designed to support and affirm an individual’s
11

gender identity” when it conflicts with the gender they were assigned at birth. allcove does not provide
medical, pharmacological or surgical gender -affirming care. allcove will support youth emotionally and
socially. Young people are allowed to identify name and pronouns. Counseling support may include
conversations about coming out as transgender to family, peers and others (such as teachers). The
goal is to help young people feel safe to share with the others in their lives.
UCLA Health, one of the health providers contracted by allcove Beach Cities, offers a gender health
program, but that clinic is separate from allcove Beach Cities. allcove Beach Cities does not contract
with UCLA for access to that clinic. Puberty blockers and surgery, which may be recommended during
gender-affirming care, are outside the scope of care for allcove. allcove also does not pay for
prescriptions for young people nor do we have a contract with a pharmacy.
Further, allcove Beach Cities is prohibited from referring clients directly to UCLA (or any contracted
provider) and must provide at least three referrals when we provide such information to clients.
The BCHD Board of Directors reviewed and approved all allcove service provider contracts during its
meeting in July 2022. Please note that this contract is with UCLA Health, and not with individual
physicians, who are provided by UCLA. Finally, the contract between allcove Beach Cities and its
providers expressly states that contractors are not employees of BCHD.
allcove Programming: allcove had a series of wellness events, including a first-generation college
bound workshop, overdose prevention training, South Bay Young Congress, dia de los muertos and
more. Two new series started at allcove: Impact Makers – Building Skills for Life, a 12-week program
designed to empower youth through service-learning experiences, and Healthy Relationship Workshop,
a four-week workshop to help build, support and establish healthy relationships.
Community Engagement: allcove staff conducted outreach and attended the following events:
• ECC Student Health Services Substance Abuse and Mental Health Awareness Fair
• Raytheon (RTX) Wellness Fair
• SBCHC Champions for Children 5K Event Wellness Expo
• Manhattan Beach City Council Meeting
• Manhattan Beach School Board Meeting
• St. James Harvest Festival
• Redondo Beach City Council Meeting
• Hermosa Beach City Council Meeting
• Redondo Beach School Board Meeting
• Hermosa Beach School Board Meeting
Metrics:
allcove Beach
Cities
Visits
Enrolled
Safety Plan

July
2024
400
43
2

August
2024
375
32
5

September October 2024
2024
423
654
57
102
6
2

Nov 2022October 2024
9,439
1,112
88

A data dashboard is available at www.bchd.org/allcovebeachcities

12

CENTER FOR HEALTH & FITNESS (CHF)
CHF Relocation Survey: CHF solicited feedback from members and staff via a CHF relocation survey
sent out October 25. More than 300 members have responded so far and results from their survey
include interest in continuing the classes and specialized services, cleanliness, staffing and a desire
for areas to gather. We will continue to gather feedback throughout the month. Management continues
to meet monthly with the CHF Member Working Group regarding the relocation.

October 2024

YTD FY 24-25

Fee Paying Members
New Members - CHF
Total Member Visits (virtual
classes, SGT, PT)

3,594
65
6,455
virtual and indoor
participants

3,594
316
23,612
virtual and indoor
participants

Gym Visits

12,169

48,448

3,614 people activated their accounts since reopening. (406 Basic members, 2,830 Silver
members, 81 Unlimited members, 3 Well-Being members, 294 guests). 1,035 people have
reviewed CHF in the new reservation system and 994 rated CHF 5 out of 5 stars! (96%)

ADVENTUREPLEX
Aplex Fall Camps: AdventurePlex hosted a sold-out Veteran’s Day camp November 11 and will be
hosting day camps Thanksgiving week. So far, 85% of projected campers have registered for
November camps (406/475). We are planning fun activities for campers, including rotations of
explorative play in the multi-level play structure, cooperative games in the sport court, rock climbing,
and arts & crafts. AdventurePlex is hosting 20 birthday parties in November.

Kids Club Members
New Kids Club Members
Drop-in or Single Day Visits
Toddler Town Visits
Birthday Parties
Camp
Camp Extended Care

October 2024

YTD FY 24-25

36
12
258
258
20
70
3

36
36
460
460
55
6,307
908

Camp numbers are based on 2 separate day camps in October.

HUMAN RESOURCES
2024 Annual Shake Out Earthquake Drill: BCHD participated in the annual Shake Out earthquake
and evacuation drill on October 17th at 10:17 a.m. Employees at each facility also practiced how to
evacuate the building safely and follow the evacuation protocol. Many participants submitted photos of
their drop, cover and hold skills!
13

International Volunteer Managers Day: On November 5th, BCHD staff celebrated International
Volunteer Managers Day! Volunteer Services honored 37 staff members as well as Purpose Connector
and AmeriCorps volunteers who work closely with volunteers. Each received heartfelt thanks and a
token of appreciation.
Volunteer Support By the Numbers FY24-25
Category

Oct 2024

YTD 24-25

$ Value**

Volunteer Hours

3,072.07

11,395.25

$439,970.60

783

975

# of Active Volunteers

**Cost of volunteer time (in California) = $38.61 per hour. Based on Independent Sector’s monetary
value for California average volunteer value http://independentsector.org/volunteer_time

HEALTH PROMOTIONS/COMMUNICATIONS
Health Promotions and Communications (HPC) produced and sent e-newsletters promoting allcove
Beach Cities, AdventurePlex, the Center for Health & Fitness and BCHD and its events. HPC also sent
out e-blasts regarding the Redondo Beach City Council meetings, which had the General Plan update
on the agenda.
Events:
Oct. 15, Nov. 5 & 11
Oct. 21
Oct. 21, 22, Nov. 12
Oct. 23
Oct. 25
Nov. 6
Nov. 12
Nov. 12

Social Hour w/Charlotte Barnett
What I Wish My Parents Knew: Dangers of Youth Substance Use
and Fentanyl
Dementia Caregiver Support Group
Hybrid Board of Directors Meeting
Mental Health First Aid Training
Virtual Mindfulness Drop-In
Virtual Families Connected Parent Chat
Virtual Happiness Chat

Media Clips:
10/11/2024
10/18/2024
10/28/2024
10/29/2024
10/30/2024
11/1/2024
11/7/2024

Measure BC: Beach Cities Health District seeks $30
million for new era of Campus
Redondo City Council nears call on F.A.R for BCHD
Campus
Endorsement: No on Measure BC
California voters could make it easier to build fire
stations and fix hospitals – right away
Skechers Pier to Pier Friendship Walk Raises over
$3.4 million for kids
Measure BC: Second bond in BCHD’s history is next
week
Redondo Beach results: all city measures passing,
except BCHD bond

Easy Reader
Easy Reader
Daily Breeze (subscription
required)
Cal Matters
Business Wire
Easy Reader
Easy Reader
14

Metrics:
WEB USERS
Beach Cities Health District
AdventurePlex
Center for Health & Fitness
Healthy Living Campus

Social Engagement
Community Events
Media Clips
Work Requests

Oct. 2024

YTD FY 2024-2025

8,770

38,244

3,361
2,264
821

17,522
13,854
2,257

Oct. 2024

YTD FY 2024-2025

33,276
45
6

126,026
223
25

37

119

15

October 2024 FINANCE CEO REPORT
Financial Reporting. In this Report, we will be presenting Final Audited Financials for FY23-24.
FY23-24 Audited Financial Reporting. As shown on the chart below, the BCHD total FY23-24 actual
Fund Financial Net Operating revenue (green line) is $15,261,000. The District has a $458,000
favorable operating Cash Surplus variance to the budget before GASB 87 and GASB 96, Net Interest
income, interest from 115 Trust (restricted funds), Amortization of Notes Receivable (NR) and
Unrealized Gain/<Loss> (non-cash transactions) and Capital Expenditures. Due to the shift in District’s
operations from Covid 19 efforts to work on multiple grants including allcove expansion and recovery
of the Health and Fitness Operations, the total revenues increased by 4% and expenses increased by
1% compared to FY22-23. The detailed audited Operating Statements for FY23-24 are presented in
the Treasurer’s Report for this month.

16

FY23-24 Financial Reporting by Service Delivery Area:
The table below illustrates the audited financial results by each operating unit. Reporting each operating
unit allows for more clarity around sources of funds; what sources of funds pay for what programs and
services and how much the programs and services cost.

17

Total Revenues Summary:
Before the GASB 87 and 76 adjustments, the actual revenues are $354,000 (or, 2%) better than
Budgeted revenues as shown below:
•
•
•
•
•

$267,000 favorable variance to the budget in Health and Fitness Operations.
$243,000 favorable variance to the budget in Property Operations.
$ 21,000 favorable variance to the budget in Property Tax revenue.
$ 12,000 favorable variance to the budget in donations and other revenues.
$ 11,000 favorable variance to the budget in Sunrise revenue.

Offset by:
• <$117,000> unfavorable variance to the budget in interest revenue and net realized losses.
• <$ 80,000> unfavorable variance to the budget from the delay in final reimbursements from
FEMA due to the timing of the final CalOES close-out reviews.
• <$ 3,000> minor negative variance in actual revenues for grants against the budget.
Total Expenditures Summary:
For FY23-24, total expenses are $104,000 favorable to the budget. There were no adjustments made
pertaining to GASB 96 for Debt Service for Software Subscription. The favorable difference in the
budget is primarily due to
• $211,000 net favorable difference to the budget from savings in Life Spans Payroll and Health
Fund costs offset with unbudgeted expenses in allcove.
• $94,000 savings in expenses from Property Operations.
Offset by:
• <$168,000> unfavorable variance to the budget in Health and Fitness Operations that, in turn,
allowed to secure additional revenues as shown above.
• <$33,000> in Other Programs & services deriving from legal and bond expenses that were
balanced out with savings in printing and advertising in the Communications Department.
Analysis Summary by the Operating Unit:
District Health Programming:
Most of allcove and Drug Free Communities (DFC) program expenses are covered by the respective
grants. For the allcove grant, monthly revenues were allocated per the State budget of Year 2 to cover
the qualified expenditures. For the DFC grant, monthly revenues are matched to the qualified
expenditures not to exceed the annual grant amount. In FY23-24, spending in DFC grant has not
exceeded the budget and the spending in allcove was over the budget by $86,000 due to the expansion
of the operations that is covered with the expansion grant for which the funding distributions started at
the beginning of FY24-25.
Due to the changes in Medi-Cal program in FY23-24, the District was able to transfer more seniors to
Medi-Cal Programs instead of using District resources leading to $66,000 in savings against the budget
in the Senior fund, and another $66,000 in payroll, software, and outside service expenses. Youth, Well
Being Services and Work Well had net savings of $170,000 primarily in payroll and outside services.

18

Health & Fitness Operations:
In FY23-24, the Health & Fitness operations combined had a net loss of <$376,000> with $99,000
improvement against the budget.
The Center for Health & Fitness (CHF) facility: In FY23-24, total revenues for CHF facility were better
than the budget by $185,597. CHF has been steadily recovering after COVID-19 throughout FY23-24.
At the end of the last fiscal year CHF increased fees for memberships, visits, and consultations, it has
been emphasizing strategies to recruit new members. Their efforts have paid off. As the final result for
FY23-24, Classes & Groups exceeded the budget by 41%, CHF Memberships by 18% and One-time
Visits & Consultation by 17% as shown on the table below. The expenses had an unfavorable difference
of <$65,806> (or, 5%) against the budget primarily due to an increase in payroll, outside services, and
cleaning supplies to accommodate new members. The increase in expenses was directly correlated
with the increase in revenues. In total, net loss in CHF is <$140,000> which is 47% better than the
budget at the fiscal year-end.

The Adventure Plex Facility: AdventurePlex has been successful in running camps all of Summer,
Fall, Winter and Spring camps this fiscal year. The camp revenues in FY23-24 are over the budget by
$31,330, $12,893, $11,612 and $14,720 respectively totaling $70,555 in favorable difference.
Drop-in play has seen a slower than expected recovery after the COVID-19 shutdown. Drop-in play no
longer runs during camp operations and is available on select weekends. Thus, there is an unfavorable
difference of <$22,937> which is partially offset with the revenues from the parties that are over the
budget by $21,406. This brings the revenues in One-time visits and consultations closer to the budget
with a minor negative variance of <$1,531>. APlex has been successful renting its facility bringing in
$20,702 in revenues over the budgeted for the fiscal year.
Adventure Plex memberships re-started in September of 2023 and APlex was able to collect its first
membership revenues after the pandemic, missing the first three months of the fiscal year. At the end
of FY23-24, the memberships were put on hold during summer camps. As a result, there is a total
unfavorable variance of <$6,495> in memberships and <$4,935> in write offs for memberships
comparing to the budget in FY23-24. Adventure Plex has been leading a campaign to enroll more
members through promotion campaign on the District’s websites, social media, events and providing
incentives for the new members and is planning to resume the membership program after the end of
summer camps.
19

In Adventure Plex facility, the total revenues for FY23-24 have exceeded the budget by $78,000, having
<$72,000> of unfavorable variance in expenses against the budget from hiring additional seasonal
staffing to run Summer Camps at full capacity, unbudgeted expenses for outside service for camps
(children’s yoga, etc.) and higher than expected electricity costs. The overage in expenses has paid off
and produced additional revenue. Thus, the total net operating loss at fiscal year-end in the Adventure
Plex facility is <$45,000> which is better than the budget by $6,000.

In FY23-24, the cost for Fitness Administration has exceeded the budget by <$30,000> due to the
increase in merchant fees that are tied to higher revenues in Health and Fitness Operations, specifically
in camps.
Other Program and Services:
Revenue Sources: In FY23-24 Sunrise Senior Assisted Living Partnership revenue was at budget with
a favorable variance of $11,000. Despite a one-time insurance settlement recorded in March resulting
in a loss of <$158,138> in April, the Sunrise Operation was above budget throughout the FY23-24.
At the end of FY23-24, property taxes were also slightly over the budget by $21,000.
Interest revenues and realized securities losses have a total unfavorable difference to the budget of
<$118,000> due to fluctuations in the financial market deriving from the high interest rates.
The District has not received the final reimbursements from FEMA budgeted at $80,000. As of today,
they are expected to be received in the last quarter of FY24-25.
Other Programs & Services Expenditures: In FY23-24 Communications Department cut the number of
mailings to one annual LiveWell Mailer (only 4-pager) and the Annual Report was provided on-line.
Thus, there were savings against the budget of $82,000. Another $40,000 in savings came from the IT
Department that reduced the scope of work for Netrix, the third-party IT services provider. These
savings offset the additional expenses of <$156,000> in Support Services primarily deriving from legal
and outside services due to an increase in legal matters and bond exploration costs.

20

Property Operations Service:
In FY23-24, total Property Operations services had a net income of $2,138,000, $337,000 favorable to
the budget.
Campus revenues exceeded the budget by $244,000. Due to the increased cost to operate the building,
the annual reconciliation of BOE expenses for FY22-23 was $543K which was $190K over the $353K
budget and have been collected in full by the end of FY23-24.
Throughout the FY23-24, the District secured five new tenants: Redondo Beach Chamber of
Commerce, Taking Time: South Bay, Creative Life mapping, Shakespeare by the Sea and Flying Lion
which have added a total additional revenue of $49,054 that was not budgeted for. All other lease
revenues in Property Operations were at budget with an additional $6,000 in revenues from Cardiac
Imaging, that continues to rent the 514-parking lot for its visits on as needed basis.
In the Campus Property (514 N. Prospect Ave.) operations the expenses have a favorable variance of
$124,000 to the budget due to minimizing maintenance and repair expenses to keep the building
operational until it’s demolished as scheduled. The other savings came from property insurance and
general maintenance cost which, in turn, covered the growing cost of electricity that was keeping utility
expenses over the budget.
In Off-Campus Property operations, the revenues were at budget, and expenses were over the budget
by <$29,000> due to an overage in outside services to appraise the District’s off-campus properties.
COVID-19 Funding summary:
Direct emergency response expenditures from testing, vaccinations, public health outreach, etc. for all
residents during COVID-19 are eligible for FEMA reimbursement. At the time of a national emergency,
government entities at all levels provide a unified, national response that required the District to
disseminate its emergency response equitably to the local community, including people who work or
live in the District and others who needed emergency assistance coming to the District facilities.
In total, the District has received $2,889,106 in reimbursements for COVID’s response as shown in the
table below. The District did not receive any reimbursements in FY23-24. The District estimates to be
reimbursed $80,000 for Administrative expenses and a 10% retention remaining from FEMA
reimbursements for the vaccine combined totaling $117,650.

Starting January 1st, 2023, the District has not recognized anymore expenditures as emergency
expenditures in nature.
21

22

Beach Cities Investment Portfolio Performance:
At the end of FY23-24, the value of the Total Portfolio @ Market is $ $13,504,930, an increase of
$243,241 from last fiscal year that came from the net income and the District cash flow management
that allowed to preserve cash after paying Healthy School and Community Grants and annual operating
expenses at the beginning of the fiscal year. The District now has changed the strategy to invest in
CAMP (short term investment) rather than in long-term capital assets due to unstable market conditions
and higher short-term interest rates.

23

Public Records Request
In December 2023, the District implemented a Public Records Request (PRR) software platform,
GovQA BCHD PRR Portal, that will facilitate the submissions from and responses to residents and
viewing of submitted PRR. When final set-up features have been implemented, responses to Public
Records will be publicly available under the Archive Section and the District [email protected] email
inbox will be discontinued. At that time submitters of PRR from the past 6-months will be notified to
start submitting PRR through the BCHD PRR Portal.
Since the last reporting date, October 14, 2024, the District has received 6 (six) new unique requests,
closed 14 (fourteen) requests and 0 (zero) requests were withdrawn. There are 9 (nine) requests that
remain open as of November 4, 2024.

24

BCHD Bike Path Project Close-out – City of Redondo Beach Flow-through Funding:
In FY23-24, the District finalized the Diamond Street bike path that started in FY22-23. As the bike path
stretches over Beach Cities Health District and City of Redondo Beach land, applicable, allocated and direct,
costs in each land area resulted in a 45% and 55% cost split, respectively.
In 2019, Beach Cities Health District was awarded a Grant by the Los Angeles County Metropolitan
Transportation Authority (Metro) for $1,833,877, which was amended in June 2023 to $1,734,974 with an
extension for the Project Funding through December 31, 2023.
After City of Redondo Beach Public Works Department approval of final inspection in March 2024, the District
finalized the project costs resulting in total Bike Path Project Cost of $2,064,568 included in the FY23-24
Audited Financial Statements. As 55% of the constructed bike path costs are applicable to the City of Redondo
Beach, the District is transferring $1,097,143 ($1,135,512.42 assets less $38,369 6-months depreciation) of
the bike path infrastructure assets to the City of Redondo Beach. The transfer is labeled “Capital Contribution
to a Local Government Agency” in the District Audited FY23-24 Financial Statements.
Please see the November 20, 2024, Board Meeting agenda item VII. Committee Reports/Finance Committee.
FY23-24 Audited Financial Statements and Board Staff Memo for more information.

25

Contract Management
The contracts noted below are newly issued contracts or changed within the CEO authority and within
the Board approved budgetary limits. Unless otherwise noted all contracts are issued for one year or
less, and the appropriate period, like annual, monthly, or total contract amount is included when
applicable.
Contracts: There were eleven (11) professional services, vendor, rental, etc. agreements executed
in October 2024.

October 2024

DEPARTMENT

NAME

TYPE

Period

Rate

allcove

South Bay Families Connected

Service Agreement

FY24-25

NTE $30,000

Wellness & Family Support

allcove

Indivisible Arts

Service Agreement

FY24-25

NTE $54,000

Wellness & Life Skills

allcove

Heluna Health

Grant Agreement

10/24-06/26

N/A

allcove Operating Grant

Amendment

01/25-12/25

Varies

Silver Sneaker Reimbursement Fees

M-T-M

$0.00

Assistance to Implement Insurance Billing
Substance abuse remediation services

Center for Health & Fitness Optum Health Care Solutions

NOTES

District

CalAIM PATH Technical Assistance Service Agreement

District

City of Manhattan Beach

Amendment

11/24-11/25

N/A

District

Sage Network & Communications

IT Service
Agreement

M-T-M

$10,730

Information Service Management

District

MetLife Insurance

Agreement

Effective 01/25

N/A

Employee Dental Coverage Provider

District

Lincoln Financial Group

Agreement

Effective 10/24

N/A

Employee 457 Plan Investement Provider

District

Kaiser Foundation Health Plan

Amendment

Expires 12/26

N/A

Tenant at 514 N. Prospect Ave.

District

Manhattan Realty, Inc.

Service Agreement

M-T-M

NTE $25,000

Real Estate Market Professional Services

26

BCHD Property Update August – November 2024
Central Plant, Electrical Plumbing & HVAC Systems Work
•
•
•
•
•
•
•
•
•
•
•
•
•
•

Supply Fan #1 - Major repairs, new metal enclosure added.
Repairs made to piping in service tunnel at central plant.
Large 30” condenser water piping/valve was repaired.
Failed 15HP motor was replaced.
8” condenser water pipe was replaced
Boiler gauge was replaced.
Fire sprinkler repairs took place during the month.
Annual Inspection for Boilers took place - including the AQMD Semi Annual Tune up for all
three boilers.
Surge tank pump was replaced.
Code required decals were added warning occupants to “stand clear” from automatic closing
fire doors.
Engineer room steam blowoff device was replaced.
Hose bib also replaced at Engineering room.
1 pole light and capacitors, flag, and parking pole ballasts were replaced.
Repairs also made to fire alarm system.

Other Planned Repairs / Improvements
•
•

Large Domestic Water Tank at central plant will need to be replaced – Studies on alternate
designs have been initiated to find most cost-effective solution.
Metal fencing repair work is planned at bottom of 514 hillside.

Peace Pole
BCHD Peace Pole was installed near the 514 Community Garden outside the central plant.
It is an international message of peace with over 250,000 Peace Poles in every country in the world,
dedicated as monuments to peace. A Peace Pole is an internationally recognized symbol of the
hopes and dreams of the entire human family, standing vigil in silent prayer for peace on earth.
Each Peace Pole bears the message “May Peace Prevail on Earth” in different languages on each of
its four sides.

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

From:
To:
Subject:
Date:
Attachments:

Communications
Charlie Velasquez
Fw: PUBLIC COMMENT: BCHD TREATS NEIGHBORS UNFAIRLY - Non-Agenda Item ALL AGENCIES
Wednesday, October 30, 2024 2:27:23 PM
image.png

From: Stop BCHD
Sent: Tuesday, October 29, 2024 12:11 PM
To: Communications <[email protected]>; Eleanor Manzano <[email protected]>;
[email protected] <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>;
[email protected] <[email protected]>;
[email protected] <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>; Kevin Cody
<[email protected]>; Martha Koo <[email protected]>; Noel Chun
<[email protected]>; Michelle Bholat <[email protected]>; Nils Nehrenheim
<[email protected]>; [email protected]
<[email protected]>; Zein Obagi <[email protected]>; Jane Diehl
<[email protected]>; [email protected] <[email protected]>;
[email protected] <[email protected]>; [email protected]
<[email protected]>
Subject: PUBLIC COMMENT: BCHD TREATS NEIGHBORS UNFAIRLY - Non-Agenda Item ALL AGENCIES
EXTERNAL EMAIL - CAUTION

BCHD PROPOSED A FLOOR AREA RATIO (FAR) 1.95 PROJECT IN A
RESIDENTIAL NEIGHBORHOOD
The floor area ratio of the Commercial and Residential is approximately 0.5, or lower. BCHD
demanded 4X that density. Literally, DAMN THE NEIGHBORS!
From BCHD FAQs "The Healthy Living Campus – including the proposed parking structure – is estimated to be
792,520 square feet, according to PaulMurdoch Architects,"
From RB Planning Department Lot Size of BCHD is 406,626

BCHD's 80% to 95% NON-DISTRICT RESIDENT (91% to 97% NONREDONDO BEACH RESIDENT) Commercially owned Healthy Living
Campus proposed an FAR of 792,520/406,626 = 1.95

44

Surrounding land is C-2 (0.5 FAR) or residential with FARs that are generally
well below 0.5. BCHD's PROPOSED 400% DENSITY LEVEL OF THE
NEIGHBORHOOD IGNORED NEIGHBORHOOD INPUT.
-StopBCHD.com
is a Neighborhood Quality-of-Life Community
concerned about the quality-of-life, health, and economic damages that BCHDs 110-foot
above the street, 800,000 sqft commercial development will inflict for the next 50-100 years.
Our neighborhoods have been burdened since 1960 by the failed South Bay Hospital project
and have not received the benefit of the voter-approved acute care public hospital since
1984.Yet we still suffer 100% of the damages and we will suffer 100% of the damages of
BCHDs proposal.
THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS
INFORMATION THAT MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY
CLIENT OR OTHER APPLICABLE PRIVILEGES, OR CONSTITUTE NON-PUBLIC
INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED
RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE,
PLEASE NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN
DELETE IT FROM YOUR SYSTEM. USE, DISSEMINATION, DISTRIBUTION, OR
REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT
CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH
ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN
ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH
CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS,
LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY
INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY
CORRESPONDENCE.

45

From:
To:
Subject:
Date:
Attachments:

Communications
Charlie Velasquez
Fw: Public Comment - Only 8% of BCHD Spending has a RESIDENCY REQUIREMENT - Non Agenda Items All
Agencies
Wednesday, October 30, 2024 2:27:26 PM
image.png

From: Stop BCHD
Sent: Tuesday, October 29, 2024 11:43 AM
To: Communications <[email protected]>; Eleanor Manzano <[email protected]>;
[email protected] <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>;
[email protected] <[email protected]>;
[email protected] <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>; Kevin Cody
<[email protected]>
Subject: Public Comment - Only 8% of BCHD Spending has a RESIDENCY REQUIREMENT - Non
Agenda Items All Agencies
EXTERNAL EMAIL - CAUTION

Why does BCHD only restrict 8% of spending to a DISTRICT RESIDENCY TEST? BCHD
should be 100% RESIDENT-TAXPAYER SPENDING!

-46

StopBCHD.com
is a Neighborhood Quality-of-Life Community
concerned about the quality-of-life, health, and economic damages that BCHDs 110-foot
above the street, 800,000 sqft commercial development will inflict for the next 50-100 years.
Our neighborhoods have been burdened since 1960 by the failed South Bay Hospital project
and have not received the benefit of the voter-approved acute care public hospital since
1984.Yet we still suffer 100% of the damages and we will suffer 100% of the damages of
BCHDs proposal.
THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS
INFORMATION THAT MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY
CLIENT OR OTHER APPLICABLE PRIVILEGES, OR CONSTITUTE NON-PUBLIC
INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED
RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE,
PLEASE NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN
DELETE IT FROM YOUR SYSTEM. USE, DISSEMINATION, DISTRIBUTION, OR
REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT
CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH
ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN
ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH
CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS,
LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY
INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY
CORRESPONDENCE.

47

From:
To:
Subject:
Date:

PRR
Charlie Velasquez
FW: Public Comment all Agencies - BCHD Communications with the RB City Council Members
Wednesday, October 30, 2024 7:02:59 PM

From: Stop BCHD
Sent: Friday, October 25, 2024 7:40 PM
To: PRR <[email protected]>; [email protected]; [email protected]; info
<[email protected]>; Eleanor Manzano <[email protected]>; [email protected];
[email protected]
Cc: Communications <[email protected]>; [email protected]; [email protected]; Kevin Cody <[email protected]>
Subject: Public Comment all Agencies - BCHD Communications with the RB City Council Members
EXTERNAL EMAIL - CAUTION

BCHD is willfully delaying to bypass the City Council meeting and the $400K Measure BC election.
There are ONLY 6 Persons email to search. WHAT IS BCHD AFRAID OF? WHAT IS BCHD HIDING?
On Fri, Oct 25, 2024 at 1:58 PM PRR <[email protected]> wrote:
Dear Resident,
Please see below (in red) for the District’s response to your public records request received
10/1/24 and extended to 10/25/24 that reads:
For Sept 1 2024 thru Oct 1 2024, provide all communications between BCHD Board Members
and/or CEO and City of Redondo Beach City Council Members, including but not limited to,
calendar entries, emails, phone logs, etc.
The District has identified possible responsive documents but requires additional time to gather,
review and respond to the request. The District has determined that the 14-day time limit to
determine whether your request seeks disclosable public records in the possession of the District
is hereby extended to 11/22/2024 for the following reason:
1. The need to search for, collect, and appropriately examine a voluminous amount of
separate and distinct records.
If you believe we have not correctly interpreted your request, please resubmit your request with a
description of the identifiable record or records that you are seeking.
Please note that the District may not respond to questions or comments included with your
request that are not themselves requests for identifiable public records under the California Public
Records Act. The lack of response by the District to any such questions or comments, including
follow-up questions and comments, is not an indication of the District’s position on any topic or
item, and should not be presented as such to any person.
Thank you.

48

From: PRR <[email protected]>
Sent: Friday, October 11, 2024 11:19 AM
To: Stop BCHD
Cc: PRR <[email protected]>
Subject: RE: CPRA - Communications with the RB City Council Members
Dear Resident,
Please see below (in red) for the District’s response to your public records request received
10/1/24 that reads:
For Sept 1 2024 thru Oct 1 2024, provide all communications between BCHD Board Members
and/or CEO and City of Redondo Beach City Council Members, including but not limited to,
calendar entries, emails, phone logs, etc.
The District is doing an e-discovery and has determined that the 10-day time limit to determine
whether your request seeks disclosable public records in the possession of the District is hereby
extended by 14 days to (10/25/2024) for the following reason:
1. The need to search for, collect, and appropriately examine a voluminous amount of
separate and distinct records
Please note that if records you are seeking do not exist, BCHD has no obligation to create new
records, or to obtain records from other sources, unless those sources are considered “prepared,
owned, used by, or retained by” by the District.
If you believe we have not correctly interpreted your request, please resubmit your request with a
description of the identifiable record or records that you are seeking.
Please note that the District may not respond to questions or comments included with your
request that are not themselves requests for identifiable public records under the California Public
Records Act. The lack of response by the District to any such questions or comments, including
follow-up questions and comments, is not an indication of the District’s position on any topic or
item, and should not be presented as such to any person.
Thank you.
From: Stop BCHD <
Sent: Tuesday, October 1, 2024 4:23 PM
To: PRR <[email protected]>
Subject: CPRA - Communications with the RB City Council Members
EXTERNAL EMAIL - CAUTION

For Sept 1 2024 thru Oct 1 2024, provide all communications between BCHD Board Members
and/or CEO and City of Redondo Beach City Council Members, including but not limited to,

49

calendar entries, emails, phone logs, etc.
-StopBCHD.com
is a Neighborhood Quality-of-Life Community concerned
about the quality-of-life, health, and economic damages that BCHDs 110-foot above the street,
800,000 sqft commercial development will inflict for the next 50-100 years. Our neighborhoods
have been burdened since 1960 by the failed South Bay Hospital project and have not received
the benefit of the voter-approved acute care public hospital since 1984.Yet we still suffer 100% of
the damages and we will suffer 100% of the damages of BCHDs proposal.
THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS INFORMATION THAT MAY BE
CONFIDENTIAL, BE PROTECTED BY ATTORNEY CLIENT OR OTHER APPLICABLE PRIVILEGES, OR
CONSTITUTE NON-PUBLIC INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE
DESIGNATED RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE, PLEASE
NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN DELETE IT FROM YOUR SYSTEM.
USE, DISSEMINATION, DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE BY UNINTENDED
RECIPIENTS IS NOT AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT
CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH ALL ATTACHMENTS
OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN ACCORDANCE WITH THE CALIFORNIA
PUBLIC RECORDS ACT. THE BEACH CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY
CLAIMS, LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY
INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY CORRESPONDENCE.

50

From:
To:
Subject:
Date:

Communications
Charlie Velasquez
Fw: Public Comment: BCHD Communications
Monday, November 4, 2024 3:53:47 PM

From: Stop BCHD
Sent: Sunday, November 3, 2024 8:23 PM
To: Eleanor Manzano <[email protected]>; Communications <[email protected]>
Subject: Public Comment: BCHD Communications
EXTERNAL EMAIL - CAUTION

It is very disturbing that BCHD has ongoing private communications with Councilmember
Obagi.
From: Beach Cities Health District <[email protected]>
Sent: Thursday, September 26, 2024 5:00:24 PM
To: [email protected]
Subject: Save Your Public Health Services!

-StopBCHD.com
is a Neighborhood Quality-of-Life Community
concerned about the quality-of-life, health, and economic damages that BCHDs 110-foot
above the street, 800,000 sqft commercial development will inflict for the next 50-100 years.
Our neighborhoods have been burdened since 1960 by the failed South Bay Hospital project
and have not received the benefit of the voter-approved acute care public hospital since
1984.Yet we still suffer 100% of the damages and we will suffer 100% of the damages of
BCHDs proposal.
THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS
INFORMATION THAT MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY
CLIENT OR OTHER APPLICABLE PRIVILEGES, OR CONSTITUTE NON-PUBLIC
INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED
RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE,
PLEASE NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN
DELETE IT FROM YOUR SYSTEM. USE, DISSEMINATION, DISTRIBUTION, OR
REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT
CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH
ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN
ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH
CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS,
LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY
INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY
CORRESPONDENCE.
51

52

From:
To:
Subject:
Date:
Attachments:

Communications
Charlie Velasquez
Fw: Public Comment - BCHD Operations Generate NO NET INCOME - ONLY TAXPAYERS FUND BCHD
Monday, November 4, 2024 3:58:04 PM
image.png

From: Stop BCHD
Sent: Thursday, October 31, 2024 7:47 PM
To: Communications <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>; info <[email protected]>;
[email protected] <[email protected]>; [email protected] <[email protected]>;
[email protected] <[email protected]>
Subject: Public Comment - BCHD Operations Generate NO NET INCOME - ONLY TAXPAYERS FUND BCHD
EXTERNAL EMAIL - CAUTION

-StopBCHD.com
is a Neighborhood Quality-of-Life Community concerned about
the quality-of-life, health, and economic damages that BCHDs 110-foot above the street, 800,000 sqft
commercial development will inflict for the next 50-100 years. Our neighborhoods have been burdened since
1960 by the failed South Bay Hospital project and have not received the benefit of the voter-approved acute
care public hospital since 1984.Yet we still suffer 100% of the damages and we will suffer 100% of the
damages of BCHDs proposal.
THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS INFORMATION THAT
MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY CLIENT OR OTHER APPLICABLE

53

PRIVILEGES, OR CONSTITUTE NON-PUBLIC INFORMATION. IT IS INTENDED TO BE
CONVEYED ONLY TO THE DESIGNATED RECIPIENT. IF YOU ARE NOT THE INTENDED
RECIPIENT OF THIS MESSAGE, PLEASE NOTIFY THE SENDER BY REPLYING TO THIS
MESSAGE AND THEN DELETE IT FROM YOUR SYSTEM. USE, DISSEMINATION,
DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT CORRESPONDENCE WITH THE
BEACH CITIES HEALTH DISTRICT, ALONG WITH ALL ATTACHMENTS OR OTHER ITEMS,
MAY BE SUBJECT TO DISCLOSURE IN ACCORDANCE WITH THE CALIFORNIA PUBLIC
RECORDS ACT. THE BEACH CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR
ANY CLAIMS, LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY
INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY
CORRESPONDENCE.

54

From:
To:
Subject:
Date:

Charlie Velasquez
Charlie Velasquez
FW: Public Comment: Vanessa Poster"s October 1 2024 Testimony
Wednesday, November 6, 2024 1:37:04 PM

From: Stop BCHD
Sent: Wednesday, November 6, 2024 10:39 AM
To: Communications <[email protected]>; Eleanor Manzano <[email protected]>;
[email protected] <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>;
[email protected] <[email protected]>;
[email protected] <[email protected]>
Cc: Noel Chun <[email protected]>; Vanessa I. Poster <[email protected]>; Michelle
Bholat <[email protected]>; Martha Koo <[email protected]>; Jane Diehl
<[email protected]>; Kevin Cody <[email protected]>
Subject: Public Comment: Vanessa Poster's October 1 2024 Testimony
EXTERNAL EMAIL - CAUTION

Public Record of BCHD, Mayors, City Councils, Planning Commissions
We have already concluded that the City Attorney never admonished the Planning Commission for
targeting BCHD in the September 19, 2024 Planning Commission meeting as BCHD Board member
Poster wrongly claimed.
FACT CHECK: The record shows that the only similar discussion was the Planning Director addressing
the audience immediately after BCHD CEO Bakaly spoke regarding BCHD. The Commissioners were
CLEARLY not part of the discussion.
Poster also claimed, “Jane (Diehl), Martha (Koo) and I are running unopposed. This is a
mandate from the electorate supporting who we are and what BCHD does for this
community.”
FACT CHECK: The community soundly rejected Measure BC in a clear repudiation of BCHD
operations, plans, and performance. Based on Measure BC content, the electorate rejected
BCHD's 30-year, unfunded, SPA8-wide allcove obligation that BCHD accepted in trade for a
$6.3M building grant. BCHD must return to servicing the "residents who reside within the
District" with its limited resources. And the electorate rejected BCHD's $21M scheme to
relieve its commercial developer from the costs to do so that were included in the lease
agreement. In short Poster's electorate does NOT support BCHD's actions as Poster stated.
Sadly, no qualified candidates have any interest in joining the financial dumpster fire at BCHD as
Board members. Perhaps a termination of the $2.4M in Executives and a full resignation of the
Board can bring in new, capable servants that will stop expanding services to a supermajority of
non-residents.

-55

StopBCHD.com
is a Neighborhood Quality-of-Life Community concerned
about the quality-of-life, health, and economic damages that BCHDs 110-foot above the street,
800,000 sqft commercial development will inflict for the next 50-100 years. Our neighborhoods have
been burdened since 1960 by the failed South Bay Hospital project and have not received the
benefit of the voter-approved acute care public hospital since 1984.Yet we still suffer 100% of the
damages and we will suffer 100% of the damages of BCHDs proposal.
THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS INFORMATION THAT MAY BE
CONFIDENTIAL, BE PROTECTED BY ATTORNEY CLIENT OR OTHER APPLICABLE PRIVILEGES, OR
CONSTITUTE NON-PUBLIC INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE
DESIGNATED RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE, PLEASE
NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN DELETE IT FROM YOUR SYSTEM.
USE, DISSEMINATION, DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE BY UNINTENDED
RECIPIENTS IS NOT AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT CORRESPONDENCE
WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH ALL ATTACHMENTS OR OTHER ITEMS, MAY
BE SUBJECT TO DISCLOSURE IN ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE
BEACH CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS, LOSSES OR DAMAGES
RESULTING FROM THE DISCLOSURE OR USE OF ANY INFORMATION, DATA OR OTHER ITEMS THAT
MAY BE CONTAINED IN ANY CORRESPONDENCE.

56

From:
To:
Subject:
Date:
Attachments:

Dan Smith
Charlie Velasquez
FW: Public comment - Ballotpedia confirms Measure BC was Denied by Voters
Friday, November 8, 2024 3:47:01 PM
image.png

From: Communications <[email protected]>
Sent: Friday, November 8, 2024 2:36 PM
To: Dan Smith <[email protected]>
Subject: FW: Public comment - Ballotpedia confirms Measure BC was Denied by Voters

From: Mark Nelson (Home Gmail)
Sent: Friday, November 8, 2024 2:34:57 PM (UTC-08:00) Pacific Time (US & Canada)
To: Communications <[email protected]>; Eleanor Manzano <[email protected]>; [email protected]
<[email protected]>; [email protected] <[email protected]>; info <[email protected]>;
[email protected] <[email protected]>; Metro Community Relations <[email protected]>;
[email protected] <[email protected]>; CityClerk <[email protected]>
Subject: Public comment - Ballotpedia confirms Measure BC was Denied by Voters
EXTERNAL EMAIL - CAUTION

I just received this update from Ballotpedia verifying that voters DENIED the $30M BCHD Measure BC. It required a 2/3rds
majority, so it was denied by 20 percentage points.

57

THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS INFORMATION THAT MAY BE CONFIDENTIAL, BE
PROTECTED BY ATTORNEY CLIENT OR OTHER APPLICABLE PRIVILEGES, OR CONSTITUTE NON-PUBLIC INFORMATION. IT
IS INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF
THIS MESSAGE, PLEASE NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN DELETE IT FROM YOUR SYSTEM.
USE, DISSEMINATION, DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT CORRESPONDENCE WITH THE BEACH CITIES HEALTH
DISTRICT, ALONG WITH ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN ACCORDANCE WITH
THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY
CLAIMS, LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY INFORMATION, DATA OR OTHER
ITEMS THAT MAY BE CONTAINED IN ANY CORRESPONDENCE.

58

From:
To:
Subject:
Date:
Attachments:

Dan Smith
Charlie Velasquez
Fw: Public Comment - BCHD - News Clippings on Measure BC Failure
Friday, November 8, 2024 9:42:43 PM
image.png
image.png
image.png

Get Outlook for iOS
From: Communications <[email protected]>
Sent: Friday, November 8, 2024 9:25:42 PM
To: Dan Smith <[email protected]>
Subject: FW: Public Comment - BCHD - News Clippings on Measure BC Failure

From: Mark Nelson (Home Gmail)
Sent: Friday, November 8, 2024 9:24:54 PM (UTC-08:00) Pacific Time (US & Canada)
To: Communications <[email protected]>; Eleanor Manzano <[email protected]>
Subject: Public Comment - BCHD - News Clippings on Measure BC Failure
EXTERNAL EMAIL - CAUTION

by Garth Meyer
Early election returns indicate the city of Redondo Beach will be getting a new police station
and two new fire stations after voters approved Measure FP by a 71% margin Nov. 5.
A major school facilities bond also passed and voters turned back a Beach Cities Health
59

District bond, which would have torn down the former South Bay Hospital, and funded other
work at its Redondo Beach campus.
Also Tuesday, Measure RB was approved – to amend the city charter to strengthen local land
use decision-making – and Measure SD, to remove the ban on compensation for school board
members, who were paid $250 per month for expenses before the city charter language against
it was brought to light last year.              
Measure FP’s margin exceeded the required two-thirds threshold. The bond provides $93
million to fund the new stations, replacing buildings from the late 1950s.
Measure S, the $278 million school facilities bond, passed with 66% support.
“I’m very, very, very happy for the students of Redondo Beach, and super-grateful to the
community for their continued support,” said Raymur Flinn, Redondo Unified School District
board president. “Now the hard work begins, deciding which projects go first, and forming a
citizen’s bond oversight committee.”
Measure BC, for the Beach Cities Health District, failed by a 53% to 47% margin.
Measure SD passed with 57% support.
Early returns showed voter turnout for the measures ranged from 49% to 53% of Redondo’s
48,935 registered voters.
“These numbers are all preliminary, as of right now,” said City Clerk Eleanor Manzano
Wednesday morning. “All of the ballots dropped off in the boxes have not been counted.”
Measure SD’s approval follows a series of discussions by the school board on the matter. The
board voted to end its pay last year and subsequently put this bond before voters.
“If the city charter is amended, it’s settled. The citizens have spoken,” Flinn said.
“I think we can stop talking about this and move on. The main issue, I believe, was bigger
than the payment, it was so a board can receive health benefits,” she said, referring to a
question of whether the charter language prevented that.
“(Now) they can receive what any school boardmember can receive in the state of
California.”  
The board will have to decide whether or not to reinstate the payments.
Measure BC would have funded the demolition of the former South Bay Hospital, helped fund
the construction of allcove, a youth health facility, as well as build open space and a parking
lot on the BCHD campus. ER

60

REDONDO BEACH, CA — Redondo Beach voters headed to the
polls to vote in the 2024 General
Election and preliminary results are in for local measures and
California State Assembly Member.
Local Measures
Redondo Beach residents also weighed in on Measure RB,
Measure S, Measure FP, Measure SD and Measure BC.
Measure RB proposed an amendment to the Redondo Beach City
Charter regarding "major changes in allowable land use" following
a Los Angeles County Supreme Court ruling in April. As of 3 p.m.
Wednesday, residents heavily favored approving the measure,
with nearly 63 percent of the vote for its approval and 37 percent
of the vote against its approval.
For in-depth and up-to-date results for Measure RB, click here.
If passed, Measure S would approve a $278 million bond to

61

improve facilities in the Redondo Beach Unified School District to
protect student safety. As of 3 p.m. Wednesday, preliminary
results showed approval for the measure in the lead with 66
percent of the vote in favor and 34 percent against.
If approved, Measure FP would authorize a $93 million bond to
improve the Redondo Beach Police and Fire Department
buildings. As of 3 p.m. Wednesday, voters were heavily in favor of
passing Measure FP, with 71 percent of the vote in favor and 29
percent of the vote against.
Measure SD was a Redondo Beach Unified School District Board
of Education measure that, if approved, would allow those acting
as designated representatives on the Board to receive
compensation, including healthcare benefits. As of 3 p.m. on
Wednesday, 57 percent of voters were in favor of passing the
measure and 43 percent were against it.
Measure BC sought to authorize a $30 million Beach Cities Health
Care District Bond Measure to cover construction improvements
on BCHD facilities. As of 3 p.m., voters in the Beach Cities were
against passing Measure BC, with 53 percent of the vote in against
and 47 percent of the vote in favor, according to preliminary
results.

62

Manhattan Beach, Hermosa Beach and Redondo Beach
voters look as if they have rejected a $30 million bond
measure that would have covered part of the expansion of a local
public health agency that property owners would have to pay for.
The Beach Cities Health District’s Measure BC had only 46.76%
support, with 53.24% of voters opposing it, according to the latest
update from the LA County registrar’s office, which was posted
around 4:30 p.m. on Wednesday, Nov. 6.
Measure BC needs a two-thirds majority to pass.
“We’re disappointed so far,” BCHD CEO Tom Bakaly said
Tuesday night. “We’ll see how it goes, and then we’ll over the
next couple of months look at options and continue to work with
the community and the board to determine what’s next for the
district.”
LIVE ELECTION RESULTS: See a chart of the latest vote
counts
The measure, if approved, would authorize a $30 million bond to
pay for the agency’s planned building to house allcove Beach
Cities, a mental health center for youth ages 12 to 25, and two
acres of public outdoor green space nearby. It would also fund the
installation of water and energy conservation systems and the
demolition of old facilities.
The Health and Wellness Bond would collect a combined $1.7
million annually in property taxes from folks in Manhattan Beach,
Hermosa Beach and Redondo Beach for 30 years.
The bond would levy a tax of $3 per $100,000 assessed property
value, money that would go toward repaying the bond. If an
owner’s property is worth $1 million, for example, they’d pay $30

63

each year.
Those who oppose the measure have said that the agency ought
not to ask taxpayers to fund new facilities it wants to build, and
that the planned expansion would do more harm than good to the
environment and people’s health.
Redondo Beach resident Candace Nafissi, for example, said
Wednesday that the turnout so far has showed the community’s
true feelings about Measure BC.
“I’m delighted that the communities have decided this,” Nafissi
said. “It’s been a long time coming.”
Nafissi, who has previously run for Redondo Beach City Council
and stays engaged in the community, said that fellow beach cities
residents she’s talked to don’t see BCHD’s new buildings as a
priority.
“The efforts they’re engaging in are contradictory to what their
mission is, and the community sees that,” Nafissi said. “You can’t
tell me that you’re for a healthy community when you’re going to
build a project that’s going to provide five years of air pollution.”
Nafissi also said that BCHD ran its Measure BC campaign as if
current services would be cut, but potential bond funds would be
used to build new facilities, not retain existing programs.
“They are in some financial ruins right now, and that’s not to be
passed on to the taxpayer and consumer,” Nafissi said, “They
need to make cuts like everyone else.”
Allcove Beach Cities currently operates on the fourth floor of
BCHD’s main campus, 514 Prospect Ave., in Redondo Beach.
But officials at the physical and mental health agency want the
youth gathering space to have its own 9,000 square-foot, two-

64

story center, which the bond would pay for.
The current BCHD building, which is more than 60 years old and
was originally the South Bay Hospital, would ultimately be
demolished to create an the two acres of open green space for
youth, older adult and community wellness programs as well as
public leisure, Bakaly has said.
BCHD staff had already been planning for the best and worst
case scenarios, Bakaly said Tuesday night, and will during its
upcoming mid-year budget review and strategic planning sessions
explore different avenues to fund the project if Measure BC
doesn’t come through.
“If the bond doesn’t pass,” Bakaly said, “we’ll be working on other
opportunities to ridge the financial gap that we have for
demolishing the building.”
They still plan to demolish the old hospital that houses BCHD’s
Beach Cities Health Center and the Silverado senior living homes
in early 2027, Bakaly added. So far, Bakaly plans on fundraising
and seeking grants while going through the budget process,
updating the community along the way.
The allcove and open space project, meanwhile, is just part of
Phase One of the agency’s planned Healthy Living Campus. The
other, bigger portion of the first phase, is a planned senior
assisted living and memory care facility; that facility comprises the
majority of phase one’s $225 million price tag.
The assisted living and memory care portion, though, is still in the
investigation phase because of the climate of commercial
financial markets, Bakaly has said, and may not go forward.
The only other time BCHD, which was formed in 1955, has asked

65

beach cities voters to approve a bond measure was in 1956 to
build the South Bay Hospital. The $1.5 million bond at that time
covered around half of the total $3.5 million project, while state
and federal funding covered the rest.
Here’s a breakdown of the estimated costs the $30 million would
cover:
$8 million to tear down the current building.
$7 million to develop the open space that’d replace it.
$3 million to complete the allcove building.
$7 million to build parking and to connect the future allcove site
to the main campus or green space.
$5 million for planning, architecture and engineering.
There would also be a financial oversight committee for the bond.
BCHD has already received nearly $7 million in state and federal
grants to build the new allcove center, Bakaly has said. The bond
funding, he added, would allow the agency to build upon that
base modular structure, connect the site to the main campus and
develop the open outdoor space.
Construction on allcove’s permanent home is hoped to begin in
the fall, Bakaly has said, with a target completion date late 2025.
Demolition of the current main campus building would likely start
in late 2026. After that 18-month tear down process, he added,
the open space would be developed, for a total timeline of up to
five years.
And although the tax would only affect those in the three beach
cities, allcove is open to youth from all over the South Bay.
BCHD wants to make allcove bigger and more impactful, Bakaly

66

has said, because the agency has seen a higher intensity and
urgency of care that community members need.
“We’re doing more suicide risk assessments than anticipated,
more safety plans and (seeing) more early psychosis than
anticipated,” Bakaly has said. “We want to serve people better
and meet the needs.”
The entire Heathy Living Campus, though, is a step-by-step
approach, Bakaly said. The agency will start looking at pursuing
the second and final phase — which would include a pool, parking
structure and community wellness pavilion for $325 million —
once the first phase has been squared away, Bakaly said.
If the assisted living and memory care portion of phase one
doesn’t happen, though, then BCHD probably wouldn’t pursue
phase two either, Bakaly said. Still, the old building will come
down whether or not the bond measure passes, he added.
Phase one of the campus, however, could be affected by a
decision Redondo Beach might soon make about how much
ground space can be built on in the city.
The Redondo Beach City Council is in a months-long discussion
about whether to reduce the floor area ratio for development, or
how much can be built on public property. The planning
commission in September approved the change to the city’s
general plan or years-long development guide, and has now
handed over the matter to the leadership panel for a final
decision.
That could severely impact plans for both allcove and phase two,
Bakaly said previously.
BCHD officials want a 1.25 floor-area-ratio, or to be able to build

67

on the entire lot area, plus one quarter more. The planning
commission, meanwhile, has proposed a 0.5 ratio, which would
allow construction on only half of a parcel.
Under the proposed rule, neither Phase I or II would be allowed
as planned.

THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS
INFORMATION THAT MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY
CLIENT OR OTHER APPLICABLE PRIVILEGES, OR CONSTITUTE NON-PUBLIC
INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED
RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE,
PLEASE NOTIFY THE SENDER BY REPLYING TO THIS MESSAGE AND THEN
DELETE IT FROM YOUR SYSTEM. USE, DISSEMINATION, DISTRIBUTION, OR
REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT
CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH
ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN
ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH
CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS,
LOSSES OR DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY
INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY
CORRESPONDENCE.

68

From:
To:
Subject:
Date:
Attachments:

Dan Smith
Charlie Velasquez
FW: Public Comment: Prop 5"s failure requires Special Districts to have 2/3rd voter approval of projects
Monday, November 11, 2024 9:26:50 AM
image.png

From: Communications <[email protected]>
Sent: Sunday, November 10, 2024 12:46 PM
To: Dan Smith <[email protected]>
Subject: FW: Public Comment: Prop 5's failure requires Special Districts to have 2/3rd voter approval
of projects

From: Mark Nelson (Home Gmail)
Sent: Sunday, November 10, 2024 12:45:16 PM (UTC-08:00) Pacific Time (US & Canada)
To: Communications <[email protected]>
Subject: Public Comment: Prop 5's failure requires Special Districts to have 2/3rd voter approval of
projects
EXTERNAL EMAIL - CAUTION

THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS INFORMATION
THAT MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY CLIENT OR OTHER
APPLICABLE PRIVILEGES, OR CONSTITUTE NON-PUBLIC INFORMATION. IT IS
INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED RECIPIENT. IF YOU ARE NOT
THE INTENDED RECIPIENT OF THIS MESSAGE, PLEASE NOTIFY THE SENDER BY

69

REPLYING TO THIS MESSAGE AND THEN DELETE IT FROM YOUR SYSTEM. USE,
DISSEMINATION, DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE BY
UNINTENDED RECIPIENTS IS NOT AUTHORIZED AND MAY BE UNLAWFUL. PLEASE
NOTE THAT CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG
WITH ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO DISCLOSURE IN
ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH CITIES
HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS, LOSSES OR
DAMAGES RESULTING FROM THE DISCLOSURE OR USE OF ANY INFORMATION, DATA
OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY CORRESPONDENCE.

70

From:
To:
Subject:
Date:
Attachments:

Dan Smith
Charlie Velasquez
Fw: Public Comment - Finance November Finance Meeting and Board Meeting
Tuesday, November 12, 2024 8:20:11 PM
image.png

Get Outlook for iOS
From: Communications <[email protected]>
Sent: Tuesday, November 12, 2024 5:29:53 PM
To: Dan Smith <[email protected]>
Subject: FW: Public Comment - Finance November Finance Meeting and Board Meeting

From: Mark Nelson (Home Gmail)
Sent: Tuesday, November 12, 2024 5:29:09 PM (UTC-08:00) Pacific Time (US & Canada)
To: Communications <[email protected]>
Cc: Eleanor Manzano <[email protected]>; info <[email protected]>; [email protected] <[email protected]>; [email protected] <[email protected]>; MHSOAC <[email protected]>; [email protected]
<[email protected]>
Subject: Public Comment - Finance November Finance Meeting and Board Meeting
EXTERNAL EMAIL - CAUTION

BCHD financial analysts miserably failed District Taxpayers by FAILING TO ANALYZE the 30-year cost of the BHCIP grant.

THE PRECEDING E-MAIL, INCLUDING ANY ATTACHMENTS, CONTAINS INFORMATION THAT MAY BE CONFIDENTIAL, BE PROTECTED BY ATTORNEY CLIENT OR OTHER APPLICABLE PRIVILEGES, OR
CONSTITUTE NON-PUBLIC INFORMATION. IT IS INTENDED TO BE CONVEYED ONLY TO THE DESIGNATED RECIPIENT. IF YOU ARE NOT THE INTENDED RECIPIENT OF THIS MESSAGE, PLEASE NOTIFY THE
SENDER BY REPLYING TO THIS MESSAGE AND THEN DELETE IT FROM YOUR SYSTEM. USE, DISSEMINATION, DISTRIBUTION, OR REPRODUCTION OF THIS MESSAGE BY UNINTENDED RECIPIENTS IS NOT
AUTHORIZED AND MAY BE UNLAWFUL. PLEASE NOTE THAT CORRESPONDENCE WITH THE BEACH CITIES HEALTH DISTRICT, ALONG WITH ALL ATTACHMENTS OR OTHER ITEMS, MAY BE SUBJECT TO
DISCLOSURE IN ACCORDANCE WITH THE CALIFORNIA PUBLIC RECORDS ACT. THE BEACH CITIES HEALTH DISTRICT SHALL NOT BE RESPONSIBLE FOR ANY CLAIMS, LOSSES OR DAMAGES RESULTING FROM
THE DISCLOSURE OR USE OF ANY INFORMATION, DATA OR OTHER ITEMS THAT MAY BE CONTAINED IN ANY CORRESPONDENCE.

71

Date:

November 15, 2024

To:

Board of Directors

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 approval at the Board of Directors meeting Wednesday, November 20, 2024.
The audit was performed by the accounting firm Davis Farr, LLP that was selected after a Request
for Qualifications (RFQ) 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 Annual Audited
Financial Report FY23-24 Draft”.
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 resulting in differences between Management and Audited
Financial Statements. For the element of surprise in the Audit this year, the Auditor reviewed the
District Capital Investment procurement process 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) is $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 reported in the Fund Financials were $3,060,000 (PY $3,871,000) mainly
due to the cost of 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 applicable to
the City of Redondo Beach, the District will effectuate a transfer of the infrastructure by the end of the

72

calendar year 2024. (See later section “Diamond Street Bike Path Project Close Out – City of
Redondo Beach Flow-through Funding” for more information.)
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
Pre-paid & Notes Receivable 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, similar to 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 of the FY23-24 BCHD Independent Audit Report And Accompanying Financial
Statements.

73

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)

74

Diamond Street Bike Path Project Close Out – City of Redondo Beach Flow-through Funding
In FY23-24, the District finalized the Diamond Street bike path that started in FY22-23. As the bike
path stretches over Beach Cities Health District and City of Redondo Beach land, applicable,
allocated and direct, costs in each land area resulted in a 45% and 55% cost split, respectively.
In 2019, Beach Cities Health District submitted a grant application to the South Bay Cities Council
of Governments (SBCOG) supported by the City of Redondo Beach. The proposed project was
planned as a bike path along Flagler Lane from Beryl Street to the start of Diamond Street to add
safety enhancements and lighting, enhancing livability and bike connectivity for the region in
alignment with the South Bay Master Plan that was adopted by the Redondo Beach City Council in
2012. The City of Redondo Beach Public Works Department approved the construction permit in
July 2023 and final inspection in March 2024.
With the recommendation from the SBCOG, in September 2019 Beach Cities Health District was
awarded a Grant by the Los Angeles County Metropolitan Transportation Authority (Metro) for
$1,833,877, which was amended in June 2023 to $1,734,974 with an extension for the Project
Funding through December 31, 2023.
After City of Redondo Beach approval of final inspection, the District notified LA Metro that the
Project had been completed at a total Project cost of $2,069,263 featuring the following
improvements:
• New Class I bike path and Class III sharrow lane markings
• New 6-foot retaining wall and regrading of the hillside adjacent to the bike path in Redondo
Beach
• Street and pedestrian lighting
• New asphalt paving
• Bicycle detection sensors at the traffic signal.
• New landscaping and trees in the Diamond Street median, hillside, and walkway
• Signage and graphics for traffic and pedestrian safety
Subsequently, the District received a permit refund of $4,694 resulting in Total Bike Path Project
Cost of $2,064,568.03, the amount included in FY23-24 Audited Financial Statements. As 55% of
the constructed bike path cost is applicable to the City of Redondo Beach, the District is transferring
$1,097,143 ($1,135,512.42 assets less $38,369 6-months depreciation) of the bike path
infrastructure assets to the City of Redondo Beach. The transfer is labeled “Capital Contribution to a
Local Government Agency” in the District Audited FY23-24 Financial Statements.
Additionally, to close out the District Bike Path Project, the LA Metro Management Audit Services
(MAS) completed their audit of the total project costs incurred, reviewed internal controls and
accounting system and allowable project costs in accordance with the Federal Acquisition
Regulation (FAR) Subpart 31 and 2 CFR Subtitle A, Chapter II, Part 200. The audit was concluded
in November 2024 with no material findings, or internal control deficiencies. MAS reported that the
total grant amount of $1,734,974 was fully incompliance. They provided one note and two
recommendations; $4,860 dollars of the total project cost of $2,069,263 reported by the District was
paid after the LA Metro funding amendment extension had lapsed December 31, 2023, and
recommended (1) that the District confirm contractually agreed titles, correspond to title on invoices
paid, (i.e. Construction Manager versus Project Manager), and (2) that the process of approving
amendments are added to the District Purchasing Policy.
With the completion of both the District FY23-24 Financial Audit and the LA Metro Audit, the District
Bike Path Project is finalized, and staff will effectuate the transfer of the Bike Path infrastructure
portion to the City of Redondo Beach.

75

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

76

Introductory Section

77

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 iii
Letter
of Transmittal.....................................................................................
Governmental
Fund
in...Fund
Balances…
............................................
..............
............................................72
.. xiv
List of Board/Off
icersChange
............
.........
Government-wide
Revenues
by
Function
.....................................................
73. xv
Organization Chart .....................................................................................
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

NOT INCLUDED
78

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

79

Letter of Transmittal
INSERT TRANSMITTAL LETTER

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

80

Financial Section

81

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.

82

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.

83

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.

84

Irvine, California
December 19, 2024

85

INSERT MD&A

86

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

87

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.

88

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.

89

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.

90

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.

91

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.

92

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.

93

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.

94

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.

95

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.

96

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:

97

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.

98

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.

99

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).

100

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.

101

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

102

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.

103

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.

104

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.

105

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.

106

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

107

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.

108

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.

109

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.

110

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

111

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

112

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

113

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.

114

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.

115

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

116

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.

117

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.

118

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.

119

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.

120

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

121

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.

122

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.

123

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.

124

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

125

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)

126

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:

127

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.

128

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.

129

Required Supplemental
Information

130

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%

131

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%

132

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.

133

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%
Healthcare cost-trend rates
- Non-Medicare: 6.50% for 2023 decreasing to an ultimate rate of 3.75% in 2076 and later years
- Medicare: 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years
CalPERS 2000-2019 Experience Study
Mortality, Retirement,
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.

134

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

135

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.

136

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)

137

Statistical Section

138

FY23-24 Audited Financial Statement Update
November 20, 2024

139

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 ($28,255,000)
o

2.

•

FY22-23 – $29M ($28,732,000)

GAAP Basis / Net Position / Equity / Principal (Long-Term Basis)
o

FY23-24 – $55M ($55,085,506)

o

FY22-23 – $56M ($55,810,959)

Cash and Investments
o

FY23-24 – $14.3M / 115 Pension & OPEB Trust $3.8M

o

FY22-23 – $13.6M / 115 Pension & OPEB Trust $3.7M
140

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%

141

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

142

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%

143

ACTION ITEM:
Recommend Approval of the FY23-24 BCHD Independent Audit
Report and Accompanying Financial Statements.

144

Investment Policy #6110

145

ACTION ITEM:
Please review and consider approval of Policy 6110: Investment
Policy as it is currently written with no edits.

146

Investment Policy #6130

147

ACTION ITEM:

Recommend approval of the revised Policy 6130:
Principal Preservation

148

Thank You

149

Date:

November 15, 2024

To:

Board of Directors

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 the Board on
November 15, 2023. The Finance Committee reviewed and unanimously recommended the
Policy be approved by the Board with no changes at their November 12, 2024, meeting.
As there are no Code related changes required at this time, we don’t recommend making any
changes to the Policy.
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
that 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, which
more recently has been investments in shorter maturity securities.
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 approval of Policy 6110: Investment Policy as it is currently written
with no edits at the November 20, 2024, board meeting.

150

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
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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
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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.

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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.

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155

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

156

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
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157

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”.

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158

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)).

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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))

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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
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161

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))
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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.
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163

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.
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164

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.

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165

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.

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166

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.

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167

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.

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168

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.
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169

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.

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170

Beach Cities Health District

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

171

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 ▎172
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 ▎173
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 ▎174
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 ▎175
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 ▎176
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 ▎177
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 ▎178
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 ▎179
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
180

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
181

Investment Review

Beach Cities Health District ▎ 12
182

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

183

Financial Markets & Investment Strategy Review

1

184

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

185

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

186

Plan Performance Summary

2

187

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

As of September 30, 2024

Performance(%)

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

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
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

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

188

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

As of September 30, 2024

Performance(%)

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

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

189

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

190

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

191

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

192

Manager Overview

3

193

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

11.4

Communication Services

4.2

Consumer Discretionary

4.7

7.9
5.3

Energy

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

6.7

Financials

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

6.3

3.1

Consumer Staples

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

194

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

Communication Services

5.3
5.3

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

195

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

Communication Services

7.5

Consumer Discretionary

10.4

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

29.8

Materials
Real Estate
Utilities
Cash

0.7
0.0

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

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

196

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

9.8

Information Technology
Materials
Real Estate
Utilities
Other
Cash

29.0

0.0
Putnam US Core Equity Fund

Top Ten Holdings

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
% of Portfolio

33.4

2.2
2.7
2.6
2.8
2.9
2.4
0.8
0.0
0.9
0.0

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

197

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

Communication Services

10.0
10.4

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

198

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

Utilities

0.0
0.7
0.0
0.6
0.0
0.2

Cash

0.3
0.0

Materials
Real Estate

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

20.0

30.0

40.0

49.2

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

199

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

Communication Services

13.7
13.8

Consumer Discretionary
2.6
2.6

Consumer Staples

1.2
1.3

Energy

Health Care

5.2
5.2
6.8
6.9

Industrials

6.1
6.1

Financials

49.7
49.8

Information Technology

Utilities

1.2
1.2
0.7
0.7
0.3
0.3

Cash

0.1
0.0

Materials
Real Estate

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

200

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

201

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
Consumer Staples

5.0
5.0

Energy

4.9
5.0
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

202

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

203

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

Consumer Staples

2.6
3.2

Energy

2.8
3.4
5.4

Financials

12.3

8.2
26.7
25.6

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

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

204

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

Consumer Staples

2.8
3.4

Energy

14.0

Financials

8.2
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

205

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
Utilities

0.0
0.8
0.4
1.0

Cash

0.9
0.0

Real Estate

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

23.6
0.0
3.4
1.8
2.5

EM Latin America

37.6

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

15.0

30.0

45.0

60.0

MSCI AC World ex USA Growth (Net)

3.13

206

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

Portfolio
Weight
(%)
2.13
1.87
1.65
1.48
1.36
1.34
1.28
1.27
1.19
1.15

Benchmark
Weight
(%)
2.16
1.90
0.00
1.50
1.37
1.36
1.29
1.28
1.21
1.17

14.72

13.24

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

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

% of Portfolio

10.0

33.6
0.1
0.1
1.7
0.0

1.48
0.0

8.0

Fidelity International Index Fund

16.0

24.0

32.0

MSCI EAFE (net)

3.14

207

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

3.4

EM Latin America

2.1

EMU

21.7

Europe ex EMU
Middle East

24.6
24.3

20.5
0.0
0.5
15.8

North America

7.5
2.0

Pacific
Other

0.0
0.1

Cash

0.0

21.8

5.0

0.0

% of Portfolio

5.1

8.0

16.0

24.0

Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)

3.15

208

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

209

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

210

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.

3.18 211

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%

Pembina Pipeline Corp.

Midstream / Pipelines

Canada

3.70%

Number of Holdings

49

Turnover Rate

American Tower Corp.

Communications

United States

3.70%

Wgt. Avg. Market Cap. ($ millions)

38,400

47%

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

3.19 212

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

a
/A
AA

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

213

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

11.5

12.8

12.5

3.4

1.3

0.0

aa
/A
A
AA

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

3.21 214

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

2.8

a
/A
AA

aa
/A
A
AA

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

215

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

a
/A
AA

aa
/A
A
AA

2.4

0.0

0.0

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

216

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

0.0

aa
/B
B
BB

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

3.24 217

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.

218

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

219

Financial Markets & Investment Strategy Review

1

220

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.

1.1 221

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.

1.2 222

Plan Performance Summary

2

223

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

As of September 30, 2024

Performance(%)

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

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

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.

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

2.1 224

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

As of September 30, 2024

Performance(%)

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

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

225

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

226

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

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.

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

2.4 227

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

228

Manager Overview

3

229

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

11.4

Communication Services

4.2

Consumer Discretionary

4.7

7.9
5.3

Energy

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

6.7

Financials

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

6.3

3.1

Consumer Staples

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

230

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

Communication Services

5.3
5.3

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

231

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

Communication Services

7.5

Consumer Discretionary

10.4

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

29.8

Materials
Real Estate
Utilities
Cash

0.7
0.0

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

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

232

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

9.8

Information Technology
Materials
Real Estate
Utilities
Other
Cash

29.0

0.0
Putnam US Core Equity Fund

Top Ten Holdings

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
% of Portfolio

33.4

2.2
2.7
2.6
2.8
2.9
2.4
0.8
0.0
0.9
0.0

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

233

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

Communication Services

10.0
10.4

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

234

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

Utilities

0.0
0.7
0.0
0.6
0.0
0.2

Cash

0.3
0.0

Materials
Real Estate

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

20.0

30.0

40.0

49.2

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

235

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

Communication Services

13.7
13.8

Consumer Discretionary
2.6
2.6

Consumer Staples

1.2
1.3

Energy

Health Care

5.2
5.2
6.8
6.9

Industrials

6.1
6.1

Financials

49.7
49.8

Information Technology

Utilities

1.2
1.2
0.7
0.7
0.3
0.3

Cash

0.1
0.0

Materials
Real Estate

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

236

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

237

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
Consumer Staples

5.0
5.0

Energy

4.9
5.0
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

238

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

239

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

Consumer Staples

2.6
3.2

Energy

2.8
3.4
5.4

Financials

12.3

8.2
26.7
25.6

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

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

240

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

Consumer Staples

2.8
3.4

Energy

14.0

Financials

8.2
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

3.12 241

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
Utilities

0.0
0.8
0.4
1.0

Cash

0.9
0.0

Real Estate

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

23.6
0.0
3.4
1.8
2.5

EM Latin America

37.6

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

15.0

30.0

45.0

60.0

MSCI AC World ex USA Growth (Net)

3.13 242

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

Portfolio
Weight
(%)
2.13
1.87
1.65
1.48
1.36
1.34
1.28
1.27
1.19
1.15

Benchmark
Weight
(%)
2.16
1.90
0.00
1.50
1.37
1.36
1.29
1.28
1.21
1.17

14.72

13.24

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

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

% of Portfolio

10.0

33.6
0.1
0.1
1.7
0.0

1.48
0.0

8.0

Fidelity International Index Fund

16.0

24.0

32.0

MSCI EAFE (net)

3.14

243

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

3.4

EM Latin America

2.1

EMU

21.7

Europe ex EMU
Middle East

24.6
24.3

20.5
0.0
0.5
15.8

North America

7.5
2.0

Pacific
Other

0.0
0.1

Cash

0.0

21.8

5.0

0.0

% of Portfolio

5.1

8.0

16.0

24.0

Goldman Sachs GQG Ptnrs Intl Opportunities
MSCI AC World ex USA (Net)

3.15 244

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

245

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

246

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.

3.18 247

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%

Pembina Pipeline Corp.

Midstream / Pipelines

Canada

3.70%

Number of Holdings

49

Turnover Rate

American Tower Corp.

Communications

United States

3.70%

Wgt. Avg. Market Cap. ($ millions)

38,400

47%

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

248

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

a
/A
AA

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

249

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

11.5

12.8

12.5

3.4

1.3

0.0

aa
/A
A
AA

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

250

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

2.8

a
/A
AA

aa
/A
A
AA

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

251

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

a
/A
AA

aa
/A
A
AA

2.4

0.0

0.0

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

252

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

0.0

aa
/B
B
BB

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

253

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
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© 2024 PFM Asset Management LLC. Further distribution is not permitted without prior written consent.

254

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 cl